<PAGE> 1
WEALTH-BUILDING OPPORTUNITY
OHIO NATIONAL
FUND, INC.
(A)
ANNUAL REPORT
Ohio National
Variable Account A
Ohio National Fund, Inc.
December 31, 1996
OHIO NATIONAL Ohio National
LOGO Financial Services(tm)
<PAGE> 2
President's Message [PHOTO]
We are pleased to provide you with an update of Ohio National Fund's performance
and investment activity for 1996. It was a year of continued growth and
generally favorable results for the Fund and the Ohio National variable annuity
and variable universal life contract owners who are invested in its portfolios.
Looking Back
Thriving in a climate of moderate growth and modest inflation, stocks produced
excellent gains in the United States in 1996. The U.S. bull market celebrated
its sixth birthday by setting new records for price and trading volume. Large
capitalization stocks were especially solid performers. Internationally, equity
performance was generally strongest in European markets and mixed in Far East
markets. The bond market registered a modest performance as interest rates rose
in the first half. Achievements and highlights of Ohio National Fund for 1996
included the following:
- - Five of the Fund's nine portfolios - the Capital Appreciation, Omni,
International, Bond and Money Market portfolios - surpassed the average
performance achieved for the year by their comparable fund category.
- - The International subaccounts of Vari-Vest and Top Tradition (formerly
Top Annuity) received five stars for their risk-adjusted three-year
annualized return in Morningstar, Inc.'s performance ratings through
July 31, 1996. Top Tradition's International subaccount was also cited
in November's Money magazine as one of the best in its category.
- - Growth in the Fund's assets signaled continued confidence from Ohio
National variable contract owners and purchasers. Total assets for the
nine portfolios increased to $664.3 million, a 45% increase over
year-end 1995.
- - Variable contract owners approved the appointment of Ohio National
Investments, Inc. as investment adviser to Ohio National Fund,
effective May 1, 1996.
Performance
Performance of Ohio National Fund's portfolios included the following:
- - The Equity Portfolio, managed by Ohio National Investments, Inc.,
recorded a total return of 18.35% for the year. The portfolio's
objective is to achieve long-term growth of capital by investing in
common stocks or other equity securities. Growth funds tracked by
Lipper Analytical Services averaged a 19.24% total return for 1996.
- - The Omni Portfolio, managed by Ohio National Investments, Inc.,
recorded a total return of 15.54% for the year. Its objective is a high
level of return consistent with preservation of capital by investing in
stocks, bonds and money market instruments. Balanced portfolio funds
tracked by Lipper averaged a 13.76% total return for the period.
- - The International Portfolio, managed by Societe Generale Asset
Management Corp., ended the year with a total return of 14.48%. The
portfolio's objective is long-term capital growth by investing in
common stocks of foreign companies. International funds tracked by
Lipper had a total return of 11.78% for the same period.
- - The Small Cap Portfolio, managed by Founders Asset Management, Inc.,
registered a total return of 17.71% for the year. Its objective is
maximum capital growth by investing primarily in common stocks of
small- and medium-size companies. Small company growth funds tracked by
Lipper averaged 20.15% for the same period.
- - The Capital Appreciation Portfolio, managed by T. Rowe Price
Associates, Inc., achieved a 15.75% total return for 1996. Its
objective is maximum capital growth by investing primarily in common
stocks that are considered to be undervalued, or temporarily out of
favor with investors, or are expected to increase in price over the
short term. Flexible portfolio funds tracked by Lipper averaged a
13.60% total return for the period.
- - The Aggressive Growth Portfolio, managed by Strong Capital Management,
Inc., finished 1996 with a total return of 0.76%. The portfolio, whose
objective is maximum capital growth, was hurt by a move into bonds
early in the year and a downturn in technology stocks at mid-year.
Capital appreciation funds tracked by Lipper had a total return of
16.31% for the year.
1
<PAGE> 3
- - The Global Contrarian Portfolio, managed by Societe Generale Asset
Management Corp., ended the year with a total return of 12.09%. Its
objective is long-term growth of capital by investing in foreign and
domestic securities believed to be undervalued or presently out of
favor. Global flexible portfolio funds tracked by Lipper had a total
return of 13.50% for the same period.
- - The Bond Portfolio, managed by Ohio National Investments, Inc.,
produced a total return of 3.71% for 1996. Its objective is a high
level of return consistent with preservation of capital and liquidity
by investing primarily in high-quality intermediate- and long-term debt
securities. Intermediate-term corporate debt funds tracked by Lipper
had a 3.27% total return for the year.
- - Dividends on the Money Market Portfolio, managed by Ohio National
Investments, Inc., generated a 5.17% yield for the year. The
portfolio's objective is maximum current income consistent with
preservation of capital and liquidity by investing in high-quality
money market instruments. The average yield reported for money market
funds by IBC Financial Data, Inc. was 4.83% for 1996.
Please note that the rates of total return under variable annuity and
variable universal life contracts will differ depending upon the applicable
contract charges for mortality and expenses. Additional details about the asset
holdings of the Fund's portfolios are provided in the following pages and
histories of the portfolios and relevant indices are shown graphically. Also
included, if applicable, is the annual report of the separate account for your
variable contract.
Looking Ahead
The U.S. economy appears to be in a slow-growth, low-inflation mode. With
corporate earnings growth stabilizing, scant likelihood of further interest rate
declines, and valuations already quite high by traditional measures, a repeat of
its 1996 performance seems unlikely for the U.S. equity market. Strengthening
economic activity abroad would bode well for foreign markets. Regardless of the
conditions, our fundamental investment principles - careful selection and
constant professional management - remain unchanged.
Allow me to take this opportunity to welcome three highly regarded new
subadvisers to Ohio National Fund's management team and announce the addition of
seven new portfolios to its roster. The Core Growth Portfolio, managed by
Pilgrim Baxter & Associates, Ltd., the Growth & Income Portfolio, managed by
Robertson Stephens Investment Management, L.P., the Strategic Income, Stellar
and Relative Value portfolios, managed by Star Bank, N.A., and the S&P 500 Index
and Social Awareness portfolios, managed by Ohio National Investments, Inc., all
became effective January 3, 1997. Please note that not all portfolios are
available to all variable contracts.
Thank you for the confidence you have placed in Ohio National Fund as
you pursue your wealth-building endeavors. Be assured that we will make every
effort to continue to merit that confidence. Please contact your sales
representative for additional information on the tax-favored financial
protection and accumulation options afforded by your variable annuity or
variable universal life contract. As your needs change over time, he or she
stands ready to serve you.
/s/ Donald J. Zimmerman
Donald J. Zimmerman
President, Ohio National Fund, Inc.
Directors and Officers of Ohio National Fund, Inc.
Donald J. Zimmerman, President and Director Joseph P. Brom, Vice President
Ronald L. Benedict, Secretary and Director Michael A. Boedeker, Vice President
George E. Castrucci, Director Stephen T. Williams, Vice President
Maurice H. Kirby, Director Dennis R. Taney, Treasurer
George M. Vredeveld, Director Amy D. Starkey, Assistant Secretary
This report may be used as sales literature only when accompanied or preceded by
an effective prospectus of Ohio National Fund, Inc. which relates sales expense
and other pertinent information.
2
<PAGE> 4
COMPARISONS OF CHANGE IN VALUE OF $10,000 INVESTMENTS
IN OHIO NATIONAL FUND PORTFOLIOS AND VARIOUS INDICES
(IN THOUSANDS OF DOLLARS)
EQUITY VS. STANDARD & POOR'S 500 INDEX
[GRAPH]
<TABLE>
<CAPTION>
Equity S&P 500
<S> <C> <C>
1986 $10,000.00 $10,000.00
1987 $11,082.00 $10,523.00
1988 $12,747.62 $12,291.92
1989 $16,706.35 $16,162.64
1990 $15,100.08 $15,656.75
1991 $18,147.28 $20,439.89
1992 $19,515.58 $22,007.63
1993 $22,265.33 $24,206.19
1994 $22,320.99 $24,523.29
1995 $28,392.30 $33,702.36
1996 $33,602.29 $41,477.49
</TABLE>
OMNI VS. STANDARD & POOR'S 500 INDEX
[GRAPH]
<TABLE>
<CAPTION>
Omni S&P 500
<S> <C> <C>
1986 $10,000.00 $10,000.00
1987 $ 9,832.00 $10,523.00
1988 $11,309.75 $12,291.92
1989 $13,058.24 $16,162.64
1990 $13,307.65 $15,656.75
1991 $15,722.99 $20,439.89
1992 $17,075.16 $22,007.63
1993 $19,269.32 $24,206.19
1994 $19,167.20 $24,523.29
1995 $23,527.73 $33,702.36
1996 $27,183.94 $41,477.49
</TABLE>
CAPITAL APPRECIATION VS. STANDARD & POOR'S 500 INDEX
[GRAPH]
<TABLE>
<CAPTION>
Cap App S&P 500
<S> <C> <C>
1986
1987
1988
1989
1990
1991
1992
1993
1994 $10,453.00 $11,053.00
1995 $12,817.47 $15,190.14
1996 $14,836.22 $18,694.50
</TABLE>
GLOBAL CONTRARIAN VS. MORGAN STANLEY WORLD INDEX
[GRAPH]
<TABLE>
<CAPTION>
Global MSCI World
<S> <C> <C>
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995 $10,889.00 $11,533.00
1996 $12,205.48 $13,087.65
</TABLE>
BOND VS. LEHMAN BROTHERS GOVERNMENT CORPORATE BOND INDEX-INTERMEDIATE
[GRAPH]
<TABLE>
<CAPTION>
Bond LB Index
<S> <C> <C>
1986 $10,000.00 $10,000.00
1987 $10,081.00 $10,367.00
1988 $10,760.46 $11,069.88
1989 $11,912.90 $12,482.40
1990 $12,844.49 $13,627.04
1991 $14,509.14 $15,620.67
1992 $15,603.13 $16,740.67
1993 $17,271.10 $18,202.13
1994 $16,607.89 $17,847.19
1995 $19,746.79 $20,579.60
1996 $20,479.39 $22,721.11
</TABLE>
INTERNATIONAL VS. MORGAN, STANLEY EUROPE, AUSTRALIA AND FAR EAST INDEX
[GRAPH]
<TABLE>
<CAPTION>
International MSCI EAFE
<S> <C> <C>
1986
1987
1988
1989
1990
1991
1992
1993 $12,498.00 $10,774.00
1994 $13,504.43 $11,642.38
1995 $15,138.46 $12,987.08
1996 $17,330.51 $13,813.06
</TABLE>
SMALL CAP VS. RUSSELL 2000 INDEX
[GRAPH]
<TABLE>
<CAPTION>
Small Cap Russell 2000
<S> <C> <C>
1986
1987
1988
1989
1990
1991
1992
1993
1994 $12,126.00 $10,027.00
1995 $18,128.79 $12,878.68
1996 $18,985.20 $15,007.52
</TABLE>
AGGRESSIVE GROWTH VS. NATIONAL ASSOCIATION OF
SECURITIES DEALERS AUTOMATED QUOTATIONS INDEX
[GRAPH]
<TABLE>
<CAPTION>
Agg Growth NASDAQ
<S> <C> <C>
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995 $12,695.00 $12,875.00
1996 $12,791.48 $15,798.91
</TABLE>
*PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PERFORMANCE OF FUND PORTFOLIOS DOES NOT REFLECT SEPARATE ACCOUNT EXPENSES.
<PAGE> 5
OHIO NATIONAL FUND, INC. December 31, 1996
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
PORTFOLIO
-------------------------------------------------------------------------------------
MONEY CAPITAL
EQUITY MARKET BOND OMNI INTERNATIONAL APPRECIATION
------------ ----------- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments in securities at market
value (note 1) ...................... $232,147,553 $23,952,935 $ 20,312,667 $145,384,948 $ 134,384,201 $38,051,933
Cash in bank .......................... 91,899 33,904 21,751 20,205 69,939 1,898
Unrealized gain on foreign currency
exchange contracts (note 6) ......... 0 0 0 0 1,686,502 0
Receivable for securities sold ........ 0 0 0 0 169,255 0
Receivable for shares sold ............ 568,786 1,594,884 60,249 212,996 971,753 271,526
Dividends and interest receivable ..... 336,613 0 429,429 539,273 366,362 155,957
Other ................................. 3,500 246 333 2,283 35,491 289
------------ ----------- ------------- ------------ ------------- -----------
Total assets ........................ 233,148,351 25,581,969 20,824,429 146,159,705 137,683,503 38,481,603
------------ ----------- ------------- ------------ ------------- -----------
Liabilities:
Unrealized loss on foreign currency
exchange contracts (note 6) ......... 0 0 0 0 47,691 0
Payable for securities purchased ...... 0 0 0 0 37,373 118,925
Dividends payable ..................... 0 3,342 0 0 0 0
Payable for shares redeemed ........... 0 47,347 8,228 449,210 0 196
Payable for investment management
services (note 3) ................... 308,692 13,019 31,160 202,348 297,964 71,971
Accrued expenses ...................... 63,305 6,931 6,154 40,457 11,276 9,268
------------ ----------- ------------- ------------ ------------- -----------
Total liabilities ................... 371,997 70,639 45,542 692,015 394,304 200,360
------------ ----------- ------------- ------------ ------------- -----------
NET ASSETS AT MARKET VALUE ............... $232,776,354 $25,511,330 $ 20,778,887 $145,467,690 $ 137,289,199 $38,281,243
============ =========== ============= ============ ============= ===========
Net assets consist of:
Par value, $1 per share ............... $ 7,206,842 $ 2,551,133 $ 1,955,819 $ 7,499,253 $ 8,861,590 $ 2,960,845
Paid-in capital in excess
of par value ........................ 142,968,012 22,960,197 18,228,687 101,513,673 111,037,006 30,684,042
Accumulated undistributed net
realized gain (loss) on investments ... 2,116,393 0 (82,701) 1,460,737 4,130,538 861,202
Net unrealized appreciation
(depreciation) on:
Investments (note 1) ................ 79,493,857 0 338,709 33,979,603 10,740,304 3,479,545
Forward currency contracts (note 6) . 0 0 0 0 1,638,811 0
Foreign currency related transactions 0 0 0 0 (1,697) 0
Undistributed net investment
income (loss) ....................... 991,250 0 338,373 1,014,424 882,647 295,609
------------ ----------- ------------- ------------ ------------- -----------
NET ASSETS AT MARKET VALUE ............... $232,776,354 $25,511,330 $ 20,778,887 $145,467,690 $ 137,289,199 $38,281,243
============ =========== ============= ============ ============= ===========
SHARES OUTSTANDING (note 5) .............. 7,206,842 2,551,133 1,955,819 7,499,253 8,861,590 2,960,845
------------ ----------- ------------- ------------ ------------- -----------
NET ASSET VALUE PER SHARE ................ $ 32.30 $ 10.00 $ 10.62 $ 19.40 $ 15.49 $ 12.93
============ =========== ============= ============ ============= ===========
<CAPTION>
PORTFOLIO
------------------------------------------
SMALL GLOBAL AGGRESSIVE
CAP CONTRARIAN GROWTH
------------ ------------ ------------
<S> <C> <C> <C>
Assets:
Investments in securities at market
value (note 1) ...................... $ 38,416,267 $ 11,049,517 $ 12,008,171
Cash in bank .......................... 8 54,173 865
Unrealized gain on foreign currency
exchange contracts (note 6) ......... 0 45,794 0
Receivable for securities sold ........ 91,941 52,969 64,224
Receivable for shares sold ............ 348,880 85,806 89,015
Dividends and interest receivable ..... 13,378 32,013 22,421
Other ................................. 154 147 164
------------ ------------ ------------
Total assets ........................ 38,870,628 11,320,419 12,184,860
------------ ------------ ------------
Liabilities:
Unrealized loss on foreign currency
exchange contracts (note 6) ......... 0 685 0
Payable for securities purchased ...... 330,137 0 150,970
Dividends payable ..................... 0 0 0
Payable for shares redeemed ........... 0 0 0
Payable for investment management
services (note 3) ................... 70,147 23,737 21,947
Accrued expenses ...................... 6,635 6,244 2,364
------------ ------------ ------------
Total liabilities ................... 406,919 30,666 175,281
------------ ------------ ------------
NET ASSETS AT MARKET VALUE ............... $ 38,463,709 $ 11,289,753 $ 12,009,579
============ ============ ============
Net assets consist of:
Par value, $1 per share ............... $ 2,133,686 $ 968,333 $ 1,197,097
Paid-in capital in excess
of par value ........................ 29,999,731 9,536,715 11,518,162
Accumulated undistributed net
realized gain (loss) on investments ... (233,108) 203,560 (1,424,222)
Net unrealized appreciation
(depreciation) on:
Investments (note 1) ................ 6,714,739 444,102 546,019
Forward currency contracts (note 6) . 0 45,109 0
Foreign currency related transactions 89 (138) 0
Undistributed net investment
income (loss) ....................... (151,428) 92,072 172,523
------------ ------------ ------------
NET ASSETS AT MARKET VALUE ............... $ 38,463,709 $ 11,289,753 $ 12,009,579
============ ============ ============
SHARES OUTSTANDING (note 5) .............. 2,133,686 968,333 1,197,097
------------ ------------ ------------
NET ASSET VALUE PER SHARE ................ $ 18.03 $ 11.66 $ 10.03
============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 6
OHIO NATIONAL FUND, INC. Year Ended December 31, 1996
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
PORTFOLIO
----------------------------------------------------------------------------------
MONEY CAPITAL
EQUITY MARKET BOND OMNI INTERNATIONAL APPRECIATION
----------- ----------- ----------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest ................................ $ 1,686,797 $ 1,065,875 $ 1,391,482 $ 2,794,396 $ 698,700 $ 798,422
Dividends ............................... 3,086,469 0 41,395 1,868,511 2,534,092(a) 601,844
----------- ----------- ----------- ----------- ----------- ----------
Total investment income ............... 4,773,266 1,065,875 1,432,877 4,662,907 3,232,792 1,400,266
----------- ----------- ----------- ----------- ----------- ----------
Expenses:
Management fees (note 3) ................ 1,124,431 58,418 117,360 735,210 1,045,159 229,794
Custodian fees (note 3) ................. 276,590 26,288 26,406 172,176 240,001 38,803
Directors' fees (note 3) ................ 12,972 1,332 1,334 8,153 6,640 1,123
Professional fees ....................... 34,582 3,242 3,391 21,829 13,900 3,173
Other ................................... 55,478 6,450 5,985 37,364 25,914 5,885
----------- ----------- ----------- ----------- ----------- ----------
Total expenses ........................ 1,504,053 95,730 154,476 974,732 1,331,614 278,778
Less fees waived (note 3) ............. 0 (9,697) 0 0 0 0
----------- ----------- ----------- ----------- ----------- ----------
Net expenses .......................... 1,504,053 86,033 154,476 974,732 1,331,614 278,778
----------- ----------- ----------- ----------- ----------- ----------
Net investment income (loss) ........ 3,269,213 979,842 1,278,401 3,688,175 1,901,178 1,121,488
----------- ----------- ----------- ----------- ----------- ----------
Realized and unrealized gain (loss)
on investments and foreign currency
Net realized gain (loss) from:
Investments ........................... 2,116,393 0 2,392 1,460,737 4,130,538 1,168,575
Foreign currency related transactions . 0 0 0 0 2,879,840 0
Net increase (decrease) in unrealized
appreciation (depreciation) on:
Investments ......................... 29,110,600 0 (518,569) 13,387,967 4,882,238 2,026,474
Foreign currency related transactions 0 0 0 0 1,097,455 0
----------- ----------- ----------- ----------- ----------- ----------
Net gain (loss) on investments ...... 31,226,993 0 (516,177) 14,848,704 12,990,071 3,195,049
----------- ----------- ----------- ----------- ----------- ----------
Net increase in net
assets from operations ........... $34,496,206 $ 979,842 $ 762,224 $18,536,879 $14,891,249 $4,316,537
=========== =========== =========== =========== =========== ==========
<CAPTION>
PORTFOLIO
---------------------------------------
SMALL GLOBAL AGGRESSIVE
CAP CONTRARIAN GROWTH
----------- ---------- -----------
<S> <C> <C> <C>
Investment income:
Interest ................................ $ 103,106 $128,285 $ 46,927
Dividends ............................... 25,786 161,763(b) 1,292,966
----------- -------- -----------
Total investment income ............... 128,892 290,048 1,339,893
----------- -------- -----------
Expenses:
Management fees (note 3) ................ 212,875 70,122 63,707
Custodian fees (note 3) ................. 35,915 27,703 10,750
Directors' fees (note 3) ................ 997 345 346
Professional fees ....................... 2,356 810 822
Other ................................... 4,125 1,407 4,983
----------- -------- -----------
Total expenses ........................ 256,268 100,387 80,608
Less fees waived (note 3) ............. 0 0 0
----------- -------- -----------
Net expenses .......................... 256,268 100,387 80,608
----------- -------- -----------
Net investment income (loss) ........ (127,376) 189,661 1,259,285
----------- -------- -----------
Realized and unrealized gain (loss)
on investments and foreign currency
Net realized gain (loss) from:
Investments ........................... (233,108) 203,560 (1,376,916)
Foreign currency related transactions . (941) 71,821 18,597
Net increase (decrease) in unrealized
appreciation (depreciation) on:
Investments ......................... 4,808,600 285,658 389,786
Foreign currency related transactions 122 42,331 (11,874)
----------- -------- -----------
Net gain (loss) on investments ...... 4,574,673 603,370 (980,407)
----------- -------- -----------
Net increase in net
assets from operations ........... $ 4,447,297 $793,031 $ 278,878
=========== ======== ===========
</TABLE>
(a) Net of $223,281 foreign taxes withheld.
(b) Net of $10,035 foreign taxes withheld.
The accompanying notes are an integral part of these financial statements.
<PAGE> 7
OHIO NATIONAL FUND, INC. Years Ended December 31 1996 and 1995
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PORTFOLIO
--------------------------------------------------------------------------
EQUITY MONEY MARKET BOND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12-31-96 12-31-95 12-31-96 12-31-95 12-31-96
----------------------------- --------------------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income ................... $ 3,269,213 $ 2,852,911 $ 979,842 $ 683,716 $ 1,278,401
Realized gain (loss) on investments and
foreign currency related transactions .. 2,116,393 5,341,756 0 0 2,392
Unrealized gain (loss) on investments and
foreign currency related transactions .. 29,110,600 26,897,831 0 0 (518,569)
------------- ------------- ------------ ------------ ------------
Net increase in assets
from operations ................... 34,496,206 35,092,498 979,842 683,716 762,224
------------- ------------- ------------ ------------ ------------
Dividends and distributions to
shareholders:
Dividends declared .................... (3,065,136) (2,203,910) (979,842) (683,716) (1,230,887)
Capital gains distribution ............ (5,341,756) (2,034,408) 0 0 0
------------- ------------- ------------ ------------ ------------
Total dividends and distributions ... (8,406,892) (4,238,318) (979,842) (683,716) (1,230,887)
------------- ------------- ------------ ------------ ------------
From Capital Share Transactions (note 5):
Received from shares sold ............... 37,139,279 27,001,671 28,544,523 14,165,258 6,923,633
Received from dividends reinvested ...... 8,406,892 4,238,318 979,842 683,716 1,230,887
Paid for shares redeemed ................ (14,554,329) (9,726,105) (19,728,821) (12,191,289) (4,971,363)
------------- ------------- ------------ ------------ ------------
Increase in net assets derived
from capital share transactions ..... 30,991,842 21,513,884 9,795,544 2,657,685 3,183,157
------------- ------------- ------------ ------------ ------------
Increase in assets ................ 57,081,156 52,368,064 9,795,544 2,657,685 2,714,494
------------- ------------- ------------ ------------ ------------
Net Assets:
Beginning of period ..................... 175,695,198 123,327,134 15,715,786 13,058,101 18,064,393
------------- ------------- ------------ ------------ ------------
End of period(a)......................... $ 232,776,354 $ 175,695,198 $ 25,511,330 $ 15,715,786 $ 20,778,887
============= ============= ============ ============ ============
Includes undistributed net
(a) investment income of .................. $ 991,250 $ 787,173 $ 0 $ 0 $ 338,373
============= ============= ============ ============ ============
<CAPTION>
PORTFOLIO
-------------------------------------------------------------------------
BOND OMNI INTERNATIONAL
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12-31-95 12-31-96 12-31-95 12-31-96 12-31-95
------------ ---------------------------- ---------------------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income ................... $ 1,047,685 $ 3,688,175 $ 3,415,111 $ 1,901,178 $ 1,727,831
Realized gain (loss) on investments and
foreign currency related transactions .. (85,093) 1,460,737 1,972,001 7,010,378 2,149,202
Unrealized gain (loss) on investments and
foreign currency related transactions .. 1,682,695 13,387,967 13,934,522 5,979,693 4,907,572
------------ ------------- ------------ ------------ ------------
Net increase in assets
from operations ................... 2,645,287 18,536,879 19,321,634 14,891,249 8,784,605
------------ ------------- ------------ ------------ ------------
Dividends and distributions to
shareholders:
Dividends declared .................... (802,639) (3,564,088) (2,700,506) (4,697,527) (1,426,199)
Capital gains distribution ............ (1,741) (1,956,755) 0 (1,691,528) (1,090,908)
------------ ------------- ------------ ------------ ------------
Total dividends and distributions ... (804,380) (5,520,843) (2,700,506) (6,389,055) (2,517,107)
------------ ------------- ------------ ------------ ------------
From Capital Share Transactions (note 5):
Received from shares sold ............... 4,015,347 25,730,422 15,409,257 37,362,568 26,592,168
Received from dividends reinvested ...... 804,380 5,520,843 2,700,506 6,389,055 2,517,107
Paid for shares redeemed ................ (1,744,440) (8,376,827) (10,120,050) (5,558,345) (7,658,197)
------------ ------------- ------------ ------------ ------------
Increase in net assets derived
from capital share transactions ..... 3,075,287 22,874,438 7,989,713 38,193,278 21,451,078
------------ ------------- ------------ ------------ ------------
Increase in assets ................ 4,916,194 35,890,474 24,610,841 46,695,472 27,718,576
------------ ------------- ------------ ------------ ------------
Net Assets:
Beginning of period ..................... 13,148,199 109,577,216 84,966,375 90,593,727 62,875,151
------------ ------------- ------------ ------------ ------------
End of period(a)......................... $ 18,064,393 $ 145,467,690 $109,577,216 $137,289,199 $ 90,593,727
============ ============= ============ ============ ============
Includes undistributed net
(a) investment income of .................. $ 290,858 $ 1,014,424 $ 890,337 $ 882,647 $ 799,333
============ ============= ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 8
OHIO NATIONAL FUND, INC. Years Ended December 31, 1996 and 1995
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PORTFOLIO
--------------------------------------------------------------------------------------
CAPITAL APPRECIATION SMALL CAP GLOBAL CONTRARIAN (b)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12-31-96 12-31-95 12-31-96 12-31-95 12-31-96 12-31-95
--------------------------- --------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss) ............ $ 1,121,488 $ 418,358 ($ 127,376) ($ 9,784) $ 189,661 $ 41,517
Realized gain (loss) on investments and
foreign currency related transactions . 1,168,575 347,729 (234,049) 564,882 275,381 63,612
Unrealized gain (loss) on investments and
foreign currency related transactions .. 2,026,474 1,486,874 4,808,722 1,631,811 327,989 161,084
------------ ------------ ------------ ------------ ------------ -----------
Net increase in assets
from operations ................... 4,316,537 2,252,961 4,447,297 2,186,909 793,031 266,213
------------ ------------ ------------ ------------ ------------ -----------
Dividends and distributions to
shareholders:
Dividends declared .................... (969,506) (284,670) 0 (28,120) (213,826) (23,897)
Capital gains distribution ............ (655,102) (139,011) (542,566) 0 (36,817) 0
------------ ------------ ------------ ------------ ------------ -----------
Total dividends and distributions ... (1,624,608) (423,681) (542,566) (28,120) (250,643) (23,897)
------------ ------------ ------------ ------------ ------------ -----------
From Capital Share Transactions (note 5):
Received from shares sold ............... 16,614,123 10,945,010 19,468,827 11,178,786 7,880,959 4,311,648
Received from dividends reinvested ...... 1,624,608 423,681 542,566 28,120 250,643 23,897
Paid for shares redeemed ................ (1,969,700) (632,303) (1,490,446) (584,139) (1,804,832) (157,266)
------------ ------------ ------------ ------------ ------------ -----------
Increase in net assets derived
from capital share transactions ..... 16,269,031 10,736,388 18,520,947 10,622,767 6,326,770 4,178,279
------------ ------------ ------------ ------------ ------------ -----------
Increase in assets ................ 18,960,960 12,565,668 22,425,678 12,781,556 6,869,158 4,420,595
------------ ------------ ------------ ------------ ------------ -----------
Net Assets:
Beginning of period ..................... 19,320,283 6,754,615 16,038,031 3,256,475 4,420,595 0
------------ ------------ ------------ ------------ ------------ -----------
End of period (a) ....................... $ 38,281,243 $ 19,320,283 $ 38,463,709 $ 16,038,031 $ 11,289,753 $ 4,420,595
============ ============ ============ ============ ============ ===========
Includes undistributed net
(a) investment income (loss) of ........... $ 295,609 $ 143,627 ($ 151,428) ($ 23,110) $ 92,072 $ 44,416
============ ============ ============ ============ ============ ===========
(b) Commenced operations March 31, 1995.
<CAPTION>
PORTFOLIO
--------------------------
AGGRESSIVE GROWTH (b)
YEAR ENDED YEAR ENDED
12-31-96 12-31-95
--------------------------
<S> <C> <C>
From operations:
Net investment income (loss) ............ $ 1,259,285 $ 295,848
Realized gain (loss) on investments and
foreign currency related transactions . (1,358,319) (39,900)
Unrealized gain (loss) on investments and
foreign currency related transactions .. 377,912 168,107
------------ -----------
Net increase in assets
from operations ................... 278,878 424,055
------------ -----------
Dividends and distributions to
shareholders:
Dividends declared .................... (1,271,325) (137,288)
Capital gains distribution ............ 0 0
------------ -----------
Total dividends and distributions ... (1,271,325) (137,288)
------------ -----------
From Capital Share Transactions (note 5):
Received from shares sold ............... 8,883,382 3,709,801
Received from dividends reinvested ...... 1,271,325 137,288
Paid for shares redeemed ................ (1,158,142) (128,395)
------------ -----------
Increase in net assets derived
from capital share transactions ..... 8,996,565 3,718,694
------------ -----------
Increase in assets ................ 8,004,118 4,005,461
------------ -----------
Net Assets:
Beginning of period ..................... 4,005,461 0
------------ -----------
End of period (a) ....................... $ 12,009,579 $ 4,005,461
============ ===========
Includes undistributed net
(a) investment income (loss) of ........... $ 172,523 $ 165,966
============ ===========
(b) Commenced operations March 31, 1995.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 9
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS EQUITY PORTFOLIO
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- -----------------------------------------------------------------
<S> <C> <C>
AEROSPACE (3.5%)
44,500 Allied Signal, Inc. $ 2,981,500
64,000 Raytheon Co. 3,080,000
31,350 Rockwell International Corp. 1,908,431
1,316 Boeing Co. 139,990
---------------
8,109,921
---------------
AUTOMOTIVE AND RELATED (3.0%)
22,500 Arvin Industries, Inc. 556,875
31,000 Chrysler Corp. 1,023,000
47,000 * Custom Chrome, Inc. 945,875
39,184 Ford Motor Co. 1,248,990
20,000 Magna International, Inc. 1,115,000
43,000 Modine Manufacturing Co. 1,150,250
47,000 Walbro Corp. 857,750
---------------
6,897,740
---------------
BANKING (3.9%)
15,000 Boatmen's Bancshares, Inc. 967,500
25,200 Charter One Financial Inc. 1,058,400
21,000 First Union Corp. 1,554,000
70,000 Hanson Trust, PLC 472,500
35,000 Long Island Bancorp, Inc. 1,225,000
22,500 Mellon Bank Corp. 1,597,500
37,000 * Olympic Financial Ltd 531,875
40,000 SEI Corp. 890,000
20,500 Susquehanna Bancshares Inc. 709,813
---------------
9,006,588
---------------
BUSINESS SERVICES (9.0%)
64,000 * Alternative Resources Inc. 1,112,000
34,500 * Banctec, Inc. 711,563
70,000 BMC Industries Inc. - Minn. 2,205,000
30,000 * Computer Sciences Corp. 2,463,750
89,000 First Data Corp. 3,248,500
12,500 Fisher Scientific International 589,063
33,000 * ITT Corp. 1,431,375
50,000 Manpower Inc. 1,625,000
76,000 Reynolds & Reynolds CL A 1,976,000
35,000 Standard Register Co. 1,137,500
30,000 * Symbol Technologies, Inc. 1,327,500
50,000 * Verifone, Inc. 1,475,000
23,000 Wackenhut Corp. Class B 350,750
45,000 * Zebra Technology Corp. 1,051,875
---------------
20,704,875
---------------
CHEMICALS (4.0%)
17,500 E I DuPont De Nemours & Co. 1,651,563
96,000 Engelhard Corp. 1,836,000
28,000 Lubrizol Corp. 868,000
5,000 * Millenium Chemicals 88,750
85,000 Monsanto Co. 3,304,375
60,000 OM Group, Inc. 1,620,000
---------------
9,368,688
---------------
COMMUNICATIONS (3.5%)
49,000 * Atlantic Tele-Network Inc. 747,250
82,500 * Andrew Corp. 4,377,656
12,500 * Granite Broadcasting, Corp. 132,813
27,500 * Mastec Inc. 1,457,500
15,000 * U.S. Robotics 1,080,000
---------------
7,795,219
---------------
COMPUTER AND RELATED (10.8%)
60,000 * Cisco Systems, Inc. $ 3,817,500
65,000 * Continental Circuits Corp. 698,750
58,000 Hewlett-Packard Co. 2,914,500
50,000 * Informix Corp. 1,018,750
32,000 Intel Corp. 4,190,000
90,000 MacNeal-Schwendler Corp. 708,750
20,000 * Microsoft Corp. 1,652,500
40,000 Motorola, Inc. 2,455,000
47,058 * Seagate Technology 1,858,791
22,871 * Solectron Corp. 1,220,740
80,000 * Sun Microsystems, Inc. 2,055,000
40,000 Texas Instruments, Inc. 2,550,000
---------------
25,140,281
---------------
CONTAINERS (0.9%)
90,000 * Owens-Illinois, Inc. 2,047,500
---------------
ELECTRICAL EQUIPMENT (5.6%)
45,000 * Analog Devices, Inc. 1,524,375
60,000 * Anixter Intl. Inc. 967,500
29,400 Eaton Corp. 2,050,650
40,000 General Electric Co. 3,955,000
40,000 Varian Associates, Inc. 2,035,000
55,000 Westinghouse Electric 1,093,125
25,000 Xerox Corp. 1,315,625
---------------
12,941,275
---------------
ENTERTAINMENT AND LEISURE (0.6%)
37,500 Cedar Fair 1,387,500
---------------
FOOD AND RELATED (1.4%)
84,000 * Buffets, Inc. 766,500
25,500 H.J. Heinz Co. 911,625
22,500 Panamerican Beverages, Inc. 1,054,688
33,000 Smart & Final, Inc. 713,625
---------------
3,446,438
---------------
FORESTRY AND PAPER PRODUCTS (0.7%)
68,000 Sonoco Products 1,759,500
---------------
HOUSEHOLD PRODUCTS (0.3%)
38,000 * Guest Supply Inc. 669,750
---------------
HOUSING, FURNITURE & RELATED (1.9%)
136,000 Clayton Homes, Inc. 1,836,000
64,000 Newell Co. 2,016,000
50,000 Shaw Industries, Inc. 587,500
---------------
4,439,500
---------------
INDUSTRIAL SERVICES (4.2%)
38,000 * Canisco Resources Inc. 152,000
31,500 Federal Signal Corp. 815,063
22,500 Fluor Corp. 1,411,875
40,000 Kysor Industrial Corp. 1,305,000
20,500 * Medar Inc. 115,313
35,300 Minerals Technologies, Inc. 1,447,300
50,000 Regal Beloit 981,250
32,000 Stewart & Stevenson Services 932,000
50,000 WMX Technologies, Inc. 1,631,250
20,000 York International, Corp. 1,117,500
---------------
9,908,550
---------------
(continued)
</TABLE>
<PAGE> 10
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS EQUITY PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- -----------------------------------------------------------------
<S> <C> <C>
INSURANCE SERVICES (6.0%)
28,125 American International Group $ 3,044,531
36,000 Chubb Corp. 1,935,000
35,831 Cincinnati Financial Corp. 2,324,536
40,000 Equitable Cos., Inc. 985,000
34,500 Providian Corp. 1,772,438
26,500 St. Paul Cos. 1,553,563
--------------
11,615,067
--------------
MACHINERY (1.9%)
4,400 * Bridgeport Machines Inc. 49,500
24,000 Caterpillar, Inc. 1,806,000
30,000 Deere & Company 1,218,750
53,500 Hardinge Inc. 1,424,438
--------------
4,498,688
--------------
MEDICAL AND RELATED (5.7%)
32,000 Abbott Laboratories 1,624,000
36,000 Allergan, Inc. 1,282,500
7,500 Allegiance Corp. 207,188
37,500 Baxter International 1,537,500
41,500 * Cephalon Inc. 850,750
66,000 Columbia HCA Healthcare Corp. 2,689,500
39,000 * Foundation Health Corp. 1,238,250
27,000 Guidant Corp. 1,539,000
30,000 * Humana Inc. 573,750
13,500 National Healthcare-LP 588,938
40,875 * Quorum Health Group Inc. 1,216,031
--------------
13,347,406
--------------
METALS AND MINING (1.1%)
16,000 Phelps Dodge Corp. 1,080,000
43,800 * Wolverine Tube, Inc. 1,543,950
--------------
2,623,950
--------------
METAL FABRICATING (0%)
7,000 Amcast Industrial Corp. 173,250
--------------
OIL, ENERGY AND NATURAL GAS (8.0%)
40,000 Ashland, Inc. 1,755,000
29,000 * Belco Oil & Gas 793,875
65,500 Camco International, Inc. 3,021,188
27,000 Chevron Corp. 1,755,000
13,000 Coastal Corp. 635,375
57,500 * Enserch Exploration Inc. 675,625
75,000 * Louis Dreyfus Natural Gas 1,284,375
38,000 National Propane Partners 745,750
35,000 * Offshore Logistics Inc. 678,125
20,000 Schlumberger, Ltd. 1,997,500
17,850 * Ultramar Diamond Shamrock 564,506
45,000 Union Texas Petroleum 1,006,875
90,000 Westcoast Energy, Inc. 1,507,500
51,000 Williams Cos. Inc. 1,912,500
15,200 Wiser Oil 300,200
--------------
18,633,394
--------------
RETAIL (1.2%)
35,000 Family Dollar Stores $ 713,125
50,000 * Globe Business Resources 512,500
35,000 * Ridgeview Inc. 258,125
23,000 Stanhome, Inc. 609,500
25,000 Warnaco Group 740,625
----------------
2,833,875
----------------
REAL ESTATE AND LEASING (2.2%)
62,000 Commercial Net Lease Realty $ 984,250
37,500 First Industrial Reality Trust 1,139,063
46,000 Healthcare Realty Trust 1,219,000
25,000 Liberty Property Trust 643,750
29,500 National Health Investors, Inc. 1,117,313
----------------
5,103,375
----------------
TEXTILES AND RELATED (0.5%)
25,000 Oxford Industries, Inc. 600,000
25,000 Singer Co. NV 559,375
----------------
1,159,375
----------------
TRANSPORTATION AND EQUIPMENT (4.3%)
41,382 Burlington Northern, Inc. 3,574,370
15,000 * Consolidated Freightways Corp 133,125
30,000 Consolidated Freightways Inc. 667,500
40,000 Greenbrier Companies, Inc. 415,000
33,750 Illinois Central Corp. 1,080,000
25,000 Norfolk Southern Corp. 2,187,500
56,800 Trinity Industries 2,130,000
----------------
10,187,495
----------------
UTILITIES (1.0%)
21,500 Entergy Corp. 596,625
27,500 FPL Group, Inc. 1,265,000
20,500 Montana Power Co. 438,188
----------------
2,299,813
----------------
TOTAL COMMON STOCKS (84.2%)
(COST $116,609,563) $196,099,010
----------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES PREFERRED STOCK VALUE
- -----------------------------------------------------------------
<S> <C> <C>
BANKING (0.1%)
11,000 Money Store 6.5% $ 301,125
----------------
COMPUTER & RELATED (0.3%)
24,000 General Datacommunications 603,000
----------------
OIL AND GAS (0.7%)
13,000 Ashland Oil, cum., conv. 892,125
15,000 Howell Corp., $3.50 Series A 765,000
----------------
1,657,125
----------------
METALS AND MINING (0.7%)
50,000 Freeport McMoRan Copper & Gold,
Series B 1,600,000
----------------
REAL ESTATE (0.2%)
20,000 Oasis Residential Inc. Series A
cum., conv. 517,500
----------------
TOTAL PREFERRED STOCK (2.0%)
(COST $4,733,590) $ 4,678,750
----------------
(continued)
</TABLE>
<PAGE> 11
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS EQUITY PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT (0.3%)
$700,000 Richey Electric, 7.000%
conv. debentures, due 03-01-06 $ 699,125
--------------
METAL FABRICATING (0.4%)
900,000 INCO, Ltd., 7.750% conv.
subordinated debentures,
due 03-15-16 947,250
--------------
OIL, ENERGY AND NATURAL GAS (0.3%)
800,000 Offshore Log, 6.000%
debentures due 12-15-06 831,000
--------------
TOTAL CONVERTIBLE (1.0%) $2,477,375
(COST $2,418,125) --------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
FINANCE (10.7%)
$3,600,000 American Express Credit Corp.
5.350% 01-03-97 $ 3,598,930
2,625,000 Associates Corp. of America
5.700% 01-10-97 2,621,259
3,064,000 General Motors Accept. Corp.
5.340% 01-06-97 3,061,621
5,340,000 Household Finance
5.600% 01-07-97 5,335,016
3,845,000 Heller Financial Inc.
5.450% 01-02-97 3,844,413
6,565,000 Prudential Funding Corp.
5.800% 01-09-97 6,556,538
----------------
25,017,778
----------------
RETAIL (1.7%)
3,879,000 Sears, Roebuck Acceptance Corp.
5.780% 01-08-97 3,874,640
----------------
TOTAL SHORT-TERM NOTES (12.4%)
(COST $28,892,418) $ 28,892,418
----------------
TOTAL HOLDINGS
(COST $152,653,696)(a) $232,147,553
================
</TABLE>
*Non-income producing securities.
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
<PAGE> 12
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE AND RELATED (11.1%)
$1,000,000 Budget Funding Corp.
5.320% 01-10-97 $ 998,670
200,000 Ford Motor Credit Corp.
5.400% 01-02-97 199,970
595,000 Ford Motor Credit Corp.
5.600% 01-02-97 594,907
675,000 General Motors Acceptance Corp.
5.420% 01-28-97 672,256
382,000 General Motors Acceptance Corp.
5.390% 01-27-97 380,512
--------------
2,846,316
--------------
BANKING (4.1%)
360,000 Merrill Lynch
5.430% 01-13-97 359,348
689,000 Merrill Lynch
5.350% 02-19-97 683,983
--------------
1,043,331
--------------
COMPUTER AND RELATED (3.3%)
325,000 IBM Credit Corp.
5.320% 01-09-97 324,616
521,000 IBM CREDIT CORP.
5.380% 01-23-97 519,287
--------------
843,903
--------------
CONSUMER DURABLES (2.4%)
622,000 Harley-Davidson
5.400% 01-31-97 619,201
--------------
ELECTRICAL EQUIPMENT (2.9%)
740,000 G.E. Capital Corp.
5.320% 01-22-97 737,704
--------------
FINANCE (17.1%)
406,000 American Express Credit
5.330% 01-14-97 405,219
284,000 American Express Credit
5.325% 01-09-97 283,664
491,000 American General Finance
5.530% 01-08-97 490,472
145,000 American General Finance
5.400% 01-08-97 144,848
891,000 Associates Corp.
5.450% 02-10-97 885,605
664,000 Beneficial Corp.
5.500% 01-21-97 661,971
1,000,000 Heller Financial Inc.
5.480% 02-12-97 993,607
511,000 Household Finance Corp.
5.310% 01-13-97 510,096
--------------
4,375,480
--------------
INDUSTRIAL (12.8%)
$1,000,000 Fluor Corp.
5.580% 01-29-97 $ 995,660
262,000 John Deere Capital Corp.
5.480% 01-17-97 261,362
1,030,000 Duponte Nemours
5.280% 01-07-97 1,029,094
985,000 NEC Industries
5.510% 01-06-97 984,246
--------------
3,270,362
--------------
INSURANCE (14.1%)
962,000 Aetna Services
5.570% 01-15-97 959,916
1,000,000 Jefferson-Pilot
5.450% 01-07-97 999,092
530,000 Prudential Funding Inc.
5.380% 01-10-97 529,287
530,000 Prudential Funding Inc.
5.420% 01-29-97 527,766
587,000 Reliastar
5.420% 01-21-97 585,232
--------------
3,601,293
--------------
MACHINERY (3.9%)
1,000,000 Echlin
5.370% 01-16-97 997,763
--------------
RECEIVABLES (11.7%)
1,000,000 Alamo Funding
5.420% 01-24-97 996,537
1,000,000 Dynamic Funding
5.500% 01-17-97 997,556
1,000,000 Madison Funding Corp.
5.450% 01-14-97 998,032
--------------
2,992,125
--------------
RETAIL (6.0%)
478,000 Sears Roebuck Acceptance Corp.
5.350% 01-23-97 476,437
727,000 Southland
5.320% 01-15-97 725,496
340,000 Southland
5.380% 01-23-97 338,882
--------------
1,540,815
--------------
UTILITIES (4.2%)
1,089,000 Madison Gas
5.540% 01-27-97 1,084,643
--------------
TOTAL HOLDINGS
(COST $23,952,935)(a) $23,952,935
==============
</TABLE>
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
<PAGE> 13
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS BOND PORTFOLIO
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT LONG-TERM BONDS & NOTES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT (12.2%)
$250,000 U.S. Treasury Note
6.375% 08-15-02 $ 251,748
500,000 U.S. Treasury Note
7.375% 11-15-97 507,295
500,000 U.S. Treasury Note
5.625% 02-15-06 472,855
500,000 U.S. Treasury Note
7.875% 11-15-99 523,915
745,000 U.S. Treasury Note
7.750% 02-15-01 787,242
--------------
2,543,054
--------------
AUTOMOTIVE AND RELATED (3.0%)
100,000 Arvin Industries
10.000% 08-01-00 107,500
500,000 GMAC
8.400% 10-15-99 525,625
--------------
633,125
--------------
COMMUNICATIONS (1.2%)
250,000 Tele-communications, Inc.
8.250% 01-15-03 252,813
--------------
COMPUTER AND RELATED (2.3%)
300,000 Apple Computer Inc.
6.500% 02-15-04 263,250
200,000 Comdisco, Inc.
7.750% 09-01-99 206,000
--------------
469,250
--------------
CONSUMER GOODS (2.5%)
200,000 RJR Nabisco Inc.
8.750% 04-15-04 201,250
300,000 RJR Nabisco Inc.
8.625% 12-01-02 308,625
--------------
509,875
--------------
ELECTRICAL EQUIPMENT (9.3%)
1,000,000 Anixter Intl
8.000% 09-15-03 1,018,750
500,000 Pioneer
8.500% 08-01-06 508,750
400,000 Tektronix Inc.
7.500% 08-01-03 405,500
--------------
1,933,000
--------------
FINANCE (1.2%)
250,000 Aristar Inc.
5.750% 07-15-98 248,750
--------------
FOOD AND RELATED (2.3%)
500,000 Wendy's Inc.
6.350% 12-15-05 478,750
--------------
FORESTRY AND PAPER PRODUCTS (4.1%)
300,000 Boise Cascade Co.
9.850% 06-15-02 337,875
250,000 Champion International
7.700% 12-15-99 258,438
250,000 ITT Rayonier Inc.
7.500% 10-15-02 257,813
--------------
854,125
--------------
HOTEL/LODGING (1.5%)
$300,000 Marriott International
7.780% 04-15-05 $ 311,250
--------------
GOVERNMENT (FOREIGN) (2.3%)
200,000 British Columbia
7.000% 01-15-03 204,250
250,000 Province of Quebec
8.625% 01-19-05 274,688
--------------
478,938
--------------
HOUSING, FURNITURE AND RELATED (0.8%)
140,000 Armstrong World
9.750% 04-15-08 166,425
--------------
INSURANCE (3.2%)
250,000 Continental Corp.
7.250% 03-01-03 254,375
400,000 Transamerica Finance Corp.
7.500% 03-15-04 412,000
--------------
666,375
--------------
MEDICAL AND RELATED (2.6%)
250,000 Bergen Brunswig
7.375% 01-15-03 256,875
300,000 Cardinal Health Inc.
6.500% 02-15-04 293,250
--------------
550,125
--------------
METALS AND MINING (2.3%)
500,000 Cyprus Minerals
6.625% 10-15-05 480,000
--------------
OIL, ENERGY AND NATURAL GAS (11.5%)
200,000 Atlantic Richfield
8.550% 03-01-12 224,500
100,000 DeKalb Energy
9.875% 07-15-00 101,000
400,000 Dresser Industries, Inc.
6.250% 06-01-00 397,500
125,000 Marathon Oil
7.000% 06-01-02 125,313
488,450 Mobile Energy Services Co.
8.665% 01-01-17 498,490
400,000 PDV America, Inc.
7.875% 08-01-03 391,000
140,000 Shell Oil Co.
6.950% 12-15-98 142,450
500,000 System Energy
7.800% 08-01-00 505,000
--------------
2,385,252
--------------
REAL ESTATE (7.1%)
300,000 Avalon Properties Inc.
7.375% 09-15-02 300,375
900,000 Colonial Realty
8.050% 07-15-06 921,375
250,000 Sun Communities
7.625% 05-01-03 253,750
--------------
1,475,500
--------------
</TABLE>
(continued)
<PAGE> 14
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS BOND PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT LONG-TERM BONDS & NOTES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION (5.4%)
$250,000 American President Cos., Ltd.
7.125% 11-15-03 $ 247,500
350,000 Illinois Central Gulf Railroad
6.750% 05-15-03 346,938
500,000 Northwest Airlines
8.070% 01-02-15 521,328
--------------
1,115,766
--------------
UTILITIES (15.6%)
200,000 Cleveland Electric Illum.
7.625% 08-01-02 195,000
500,000 Great Lakes Power Inc.
8.900% 12-01-99 529,375
250,000 Kansas Gas & Electric
8.290% 03-29-16 258,750
550,000 Mississippi Power & Light
8.800% 04-01-05 561,688
200,000 Old Dominion Electric Co-op
8.760% 12-01-22 221,250
200,000 Sprint Corp.
8.125% 07-15-02 213,000
700,000 Texas Utilities Electric Co.
7.480% 01-01-17 683,375
200,000 Toledo Edison Co.
7.875% 08-01-04 197,750
375,000 New Orleans Public Service Co.
8.670% 04-01-05 382,031
--------------
3,242,219
--------------
MISCELLANEOUS (3.3%)
700,000 ITT Destinations Inc.
6.750% 11-15-05 680,750
--------------
TOTAL LONG-TERM BONDS & NOTES (93.7%)
(COST $19,161,756) $ 19,475,341
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES PREFERRED STOCK VALUE
- ------------------------------------------------------------------
<S> <C> <C>
UTILITIES (2.3%)
12,000 GTE Delaware, 8.750%, Series B $316,500
6,500 Phillips Gas Co., 9.320% Series A 170,625
--------------
487,125
--------------
TOTAL PREFERRED STOCKS (2.3%)
(COST $462,500) $487,125
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES WARRANTS VALUE
- -----------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED
500 * Plastic Specialties & Tech Inc. $500
--------------
TOTAL WARRANTS (0.0%) $500
(COST $0) --------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
FINANCE (1.7%)
$350,000 Household
6.150% 01-06-97 $ 349,701
--------------
TOTAL SHORT-TERM NOTES (1.7%)
(COST $349,702) $ 349,701
--------------
TOTAL HOLDINGS
(COST $19,973,958)(a) $20,312,667
==============
</TABLE>
*Non-income producing securities.
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
<PAGE> 15
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS OMNI PORTFOLIO
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT LONG-TERM BONDS & NOTES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT (2.4%)
$ 775,000 U.S. Treasury Note
6.375% 07-15-99 $ 782,432
500,000 U.S. Treasury Note
7.875% 11-15-99 523,915
2,005,000 U.S. Treasury Note
7.750% 02-15-01 2,118,684
----------------
3,425,031
----------------
AVIATION (0.3%)
500,000 AAR Corp.
7.250% 10-15-03 478,125
----------------
COMPUTERS AND RELATED (0.4%)
700,000 Apple Computer, Inc.
6.500% 02-15-04 614,250
----------------
CONSUMER GOODS (0.8%)
700,000 Kroger Co.
9.750% 02-15-04 740,250
400,000 RJR Nabisco, Inc.
8.750% 04-15-04 402,500
----------------
1,142,750
----------------
FINANCE (1.0%)
1,000,000 Green Tree Financial Corp.
8.700% 06-15-25 1,000,000
400,000 Citfed Bankcorp Inc.
8.250% 09-01-03 388,500
----------------
1,388,500
----------------
FORESTRY AND PAPER PRODUCTS (1.1%)
700,000 Boise Cascade Co.
9.850% 06-15-02 788,375
500,000 Champion International
9.875% 06-01-00 549,375
250,000 ITT Rayonier, Inc.
7.500% 10-15-02 257,813
----------------
1,595,563
----------------
HOUSING, FURNITURE AND RELATED (0.2%)
250,000 Armstrong World
9.750% 04-15-08 297,188
----------------
INDUSTRIAL SERVICES (0.3%)
350,000 Robins & Myers
6.500% 09/01/03 395,938
----------------
INSURANCE (0.8%)
500,000 Continental Corp.
7.250% 03-01-03 508,750
600,000 Transamerica Finance Corp.
7.500% 03-15-04 618,000
----------------
1,126,750
----------------
MEDICAL AND RELATED (0.4%)
500,000 Bergen Brunswig
7.375% 01-15-03 513,750
----------------
METALS AND MINING (0.3%)
$500,000 Cyprus Minerals
6.625% 10-15-05 $ 480,000
----------------
OIL, ENERGY AND NATURAL GAS (1.5%)
400,000 Dekalb Energy
9.875% 07-15-00 404,000
350,000 Dresser Industries, Inc.
6.250% 06-01-00 347,813
375,000 Marathon Oil
7.00% 06-01-02 375,938
600,000 PDV America, Inc.
7.875% 08-01-03 586,500
500,000 Union Texas Petroleum
8.250% 11-15-99 516,250
----------------
2,230,500
----------------
TRANSPORTATION (0.6%)
500,000 American President Cos., Ltd.
7.125% 11-15-03 495,000
400,000 Illinois Central Gulf Railroad
6.750% 05-15-03 396,500
----------------
891,500
----------------
UTILITIES (2.2%)
400,000 Cleveland Electric Illum.
7.625% 08-01-02 390,000
1,000,000 Great Lakes Power
9.000% 08-01-04 1,076,250
500,000 Mississippi Power & Light
8.800% 04-01-05 510,625
400,000 Old Dominion Elec. Co.
8.760% 12-01-22 442,500
300,000 Sprint Corp.
8.125% 07-15-02 319,500
500,000 Texas New Mexico Power Co.
9.250% 09-15-00 531,875
----------------
3,270,750
----------------
TOTAL LONG-TERM BONDS & NOTES (12.3%)
(COST $17,440,483) $17,850,593
----------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE AND RELATED (3.1%)
$2,070,000 General Motors Acceptance Corp.
5.340% 01-06-97 $ 2,068,393
2,410,000 Ford Motor
5.600% 01-02-97 2,409,617
----------------
4,478,010
----------------
RETAIL (1.0%)
1,395,000 Sears Roebuck Acceptance Corp.
5.780% 01-08-97 1,393,432
----------------
</TABLE>
(continued)
<PAGE> 16
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS OMNI PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
FINANCE (15.2%)
$5,310,000 American Express Credit Corp.
5.350% 01-03-97 $ 5,308,422
5,320,000 Associates Corp.
5.700% 01-10-97 5,312,419
5,485,000 Household Finance
5.600% 01-07-97 5,479,881
2,965,000 Heller Finance
5.450% 01-02-97 2,964,547
3,100,000 Prudential Funding Corp.
5.800% 01-09-97 3,096,004
----------------
22,161,273
----------------
TOTAL SHORT-TERM NOTES (19.3%)
(COST $28,032,715) $ 28,032,715
----------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- --------------------------------------------------------------------
<S> <C> <C>
AEROSPACE (2.5%)
22,000 Allied Signal, Inc. $ 1,474,000
728 Boeing Co. 77,441
21,600 Raytheon Co. 1,039,500
17,350 Rockwell International Corp. 1,056,181
----------------
3,647,122
----------------
AUTOMOTIVE AND RELATED (3.2%)
7,500 Arvin Industries, Inc. 185,625
11,700 Chrysler Corp. 386,100
25,500 * Custom Chrome, Inc. 513,188
8,000 Eaton Corp. 558,000
58,777 Ford Motor Co. 1,873,517
10,000 Magna International, Inc. 557,500
34,000 Walbro Corp. 620,500
----------------
4,694,429
----------------
BANKING (3.5%)
10,000 Boatmen's Bancshares, Inc. 645,000
13,650 Charter One Financial, Inc. 573,300
35,000 First Colorado Bancorp 595,000
10,000 First Union Corp. 740,000
14,332 Franklin National Bank 168,401
45,000 Hanson Trust, Plc 303,750
17,500 Long Island Bancorp, Inc. 612,500
11,250 Mellon Bank Corp. 798,750
16,000 * Olympic Financial Ltd. 230,000
12,500 Susquehanna Bancshares, Inc. 432,813
----------------
5,099,514
----------------
BUSINESS SERVICES (4.5%)
37,000 * Alternative Resources Co. 642,875
30,000 BMC Industries, Inc.-Minn. 945,000
6,600 * Computer Sciences Corp. 542,025
40,000 First Data Corp. 1,460,000
16,000 * ITT Corp. 694,000
30,000 Manpower, Inc. 975,000
5,000 Standard Register Co. 162,500
22,000 * Verifone, Inc. 649,000
22,000 * Zebra Technology Corp. 514,250
----------------
6,584,650
----------------
CHEMICALS (1.9%)
2,500 E I DuPont DeNemours & Co. $ 235,938
30,000 Learonal Inc. 690,000
12,000 Lubrizol Corp. 372,000
3,214 * Millenium Chemicals 57,049
15,000 Monsanto Co. 583,125
33,000 OM Group, Inc. 891,000
---------------
2,829,111
---------------
COMPUTER AND RELATED (7.5%)
30,000 * Cisco Systems, Inc. 1,908,750
22,000 * Informix Corp. 448,250
30,000 Hewlett-Packard Co. 1,507,500
14,000 Intel Corp. 1,833,125
55,000 MacNeal-Schwendler Corp. 433,125
10,000 * Microsoft Corp. 826,250
47,058 * Seagate Technology, Inc. 1,858,791
40,000 * Sun Microsystems, Inc. 1,027,500
18,000 Texas Instruments, Inc. 1,147,500
---------------
10,990,791
---------------
COMMUNICATIONS (2.6%)
31,000 * Atlantic Tele-Network Inc. 472,750
36,000 * Andrew Corp. 1,910,250
7,500 * Granite Broadcasting Corp. 79,688
15,000 * Mastec, Inc. 795,000
8,000 * U.S. Robotics Corp. 576,000
---------------
3,833,688
---------------
CONTAINERS (1.1%)
70,000 Owens-Illinois, Inc. 1,592,500
---------------
ELECTRICAL EQUIPMENT (4.3%)
25,000 * Analog Devices, Inc. 846,875
30,000 * Anixter International, Inc. 483,750
26,116 Federal Signal Corp. 675,752
14,000 General Electric Co. 1,384,250
13,500 Robbins & Myers 337,500
40,000 Westinghouse Electric 795,000
18,000 Varian Associates, Inc. 915,750
15,000 Xerox Corp. 789,375
---------------
6,228,252
---------------
ENTERTAINMENT AND LEISURE (0.8%)
33,000 Cedar Fair 1,221,000
---------------
FOOD AND RELATED (1.3%)
50,000 * Buffets, Inc. 456,250
16,500 H.J. Heinz Co. 589,875
11,500 PanAmerican Beverages, Inc. 539,063
15,000 Smart & Final, Inc. 324,375
---------------
1,909,563
---------------
FORESTRY AND PAPER PRODUCTS (0.7%)
38,000 Sonoco Products Inc. 983,250
---------------
HOUSING, FURNITURE & RELATED (1.2%)
37,024 Clayton Homes 499,837
30,000 Haverty Furniture Co. 341,250
24,000 Newell Co. 756,000
11,200 Shaw Industries, Inc. 131,600
---------------
1,728,687
---------------
</TABLE>
<PAGE> 17
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS OMNI PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- --------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL SERVICES (1.5%)
20,000 * Canisco Resources Inc. $ 80,000
30,000 Clarcor 663,750
2,000 * Plastic Specialties & TC 2,000
1,600 Regal Beloit 31,400
28,000 Stewart & Stevenson Services 815,500
42,500 Versa Technologies 552,500
----------------
2,145,150
----------------
INSURANCE (5.0%)
16,125 American International Group 1,745,531
30,000 Chubb Corp. 1,612,500
24,806 Cincinnati Financial Corp. 1,609,289
20,000 Equitable Cos., Inc. 492,500
20,500 Providian Corporation 1,053,188
12,500 St. Paul Cos. 732,813
----------------
7,245,821
----------------
MACHINERY (0.9%)
6,000 Caterpillar, Inc. 451,500
33,000 Hardinge Inc. 878,625
----------------
1,330,125
----------------
METAL FABRICATING (0.9%)
27,000 Amcast Industrial Corp. 668,250
18,000 Engelhard Corp. 344,250
4,000 Phelps Dodge Corp. 270,000
----------------
1,282,500
----------------
METALS AND MINING (0.7%)
20,000 Minerals Technologies, Inc. $ 820,000
6,200 * Wolverine Tube, Inc. 218,550
----------------
1,038,550
----------------
MEDICAL AND RELATED (4.3%)
28,000 Abbott Laboratories 1,421,000
14,000 Allergan, Inc. 498,750
5,300 Allegiance Corp. 146,413
26,500 Baxter International 1,086,500
20,000 * Cephalon 410,000
25,000 * Foundation Health Corp. 793,750
19,000 Guidant Corp. 1,083,000
18,000 * Humana, Inc. 344,250
16,000 * Quorum Health Group Inc. 476,000
----------------
6,259,663
----------------
OIL, ENERGY AND NATURAL GAS (7.9%)
15,000 Ashland, Inc. 658,125
15,000 * Belco Oil & Gas 410,625
45,500 Camco International, Inc. 2,098,688
23,000 Chevron Corp. 1,495,000
7,000 Coastal Corp. 342,125
7,650 * Diamond Shamrock, Inc. 241,931
27,000 * Enserch Exploration, Inc. 317,250
40,000 * Louis Dreyfus Natural Gas 685,000
32,200 National Propane Partners 631,925
17,500 * Offshore Logistics Inc. 339,063
10,000 Schlumberger, Ltd. 998,750
35,000 Union Texas Petroleum Holdings, Inc. 783,125
11,600 WD-40 Co. 591,781
45,000 Westcoast Energy, Inc. 753,750
28,500 Williams Cos. Inc. 1,068,750
7,600 Wiser Oil 150,100
----------------
11,565,988
----------------
REAL ESTATE (3.2%)
70,300 Commercial Net Lease Realty $ 1,116,013
30,500 First Industrial Realty Trust 926,438
45,000 Healthcare Realty Trust 1,192,500
17,000 Liberty Property Trust 437,750
24,000 National Health Investors, Inc. 909,000
---------------
4,581,700
---------------
RETAIL (0.5%)
12,000 Stanhome, Inc. 318,000
13,000 Warnaco Group Class A 385,125
---------------
703,125
---------------
TRANSPORTATION AND EQUIPMENT (3.3%)
24,255 Burlington Northern Santa Fe 2,095,026
15,000 Consolidated Freightways, Inc. 333,750
7,500 * Consolidated Freightways Corp. 66,563
24,000 Greenbrier Companies, Inc. 249,000
11,250 Illinois Central Corp. 360,000
10,000 Norfolk Southern Corp. 875,000
21,000 Trinity Industries 787,500
---------------
4,766,838
---------------
UTILITIES (0.7%)
6,000 Entergy Corp. 166,500
15,000 FPL Group, Inc. 690,000
7,000 Montana Power Co. 149,625
---------------
1,006,125
---------------
TOTAL COMMON STOCKS (64.0%)
(COST $59,810,887) $93,268,140
---------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES PREFERRED STOCK VALUE
- ------------------------------------------------------------------
<S> <C> <C>
BANKING (0.2%)
11,000 Money Store, 6.5% $301,125
---------------
COMPUTERS AND RELATED (0.3%)
16,000 General Datacommunications,
9.000% cum., conv. 402,000
---------------
FOOD & RELATED (0.4%)
20,000 Conagra Capital LC, 9.350% cum.,
conv. Series C 532,500
---------------
METALS AND MINING (0.6%)
30,000 Freeport McMoRan Copper & Gold
cum., conv. 960,000
---------------
OIL, ENERGY AND NATURAL GAS (0.7%)
7,000 Ashland, Inc., cum., conv. 480,375
10,000 Howell Corp., $3.50 Series A 510,000
---------------
990,375
---------------
REAL ESTATE (0.3%)
15,000 Oasis Residential , Inc., 9.000%
cum., conv. Series A 388,125
---------------
</TABLE>
<PAGE> 18
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS OMNI PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES PREFERRED STOCK VALUE
- --------------------------------------------------------------------
<S> <C> <C>
UTILITIES (0.7%)
20,000 GTE Delaware 8.750%, Series B $ 527,500
22,000 Phillips Gas Co. 9.320% Series A 577,500
----------------
1,105,000
----------------
TOTAL PREFERRED STOCKS (3.2%)
(COST $4,603,135) $4,679,125
----------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT (0.2%)
$300,000 Richey Electric, 7.000% conv.
debentures, due 03-01-06 $ 299,625
----------------
METAL FABRICATING (0.4%)
600,000 INCO, Ltd., 7.750% conv. subordinated
debentures, due 03-15-16 631,500
----------------
OIL, ENERGY AND NATURAL GAS (0.5%)
600,000 Offshore Logistics, Inc., 6.000%
conv. debentures, due 12-15-06 623,250
----------------
TOTAL CONVERTIBLE DEBENTURES (1.1%)
(COST $1,518,125) $ 1,554,375
----------------
TOTAL HOLDINGS
(COST $111,405,345)(a) $145,384,948
================
</TABLE>
* Non-income producing securities.
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
<PAGE> 19
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- ----------------------------------------------------------------------------
<S> <C> <C>
JAPAN (13.2%)
125,000 Aida Engineering Limited (19) $ 789,326
35,750 Chofu Seisakusho (9) 671,390
235,000 Dai-Tokyo Fire Marine Ins. Co. Ltd.(18) 1,245,047
150,000 Dowa Fire & Marine Ins. Co. Ltd.(18) 576,327
75,000 Fuji Photo Film Co., Ltd. (9) 2,468,125
12,000 Hitachi Ltd. ADR (11) 1,110,000
150,000 * Iino Kaiun Kaisha (5) 529,807
35,000 Ito-Yokado Co. Ltd. (28) 1,519,642
100,000 Koa Fire & Marine Ins. Co., Ltd.(18) 484,149
165,000 Nichido Fire & Marine Ins. Co., Ltd.(18) 938,146
135,000 Nisshinbo Industries Inc. (8) 1,049,018
100,000 Nittetsu Mining Co., Ltd. (22) 757,236
75,000 Shimano Inc. (9) 1,272,829
30,000 Sotoh Co. (31) 286,871
149,000 Shoei Co. (27) 1,270,762
10,000 Toho Co. (20) 1,447,278
135,000 Tokyo Marine & Fire Ins. Co. Ltd.(18) 1,267,660
15,000 Tsutsumi Jewelry Co. (9) 370,865
----------
18,054,478
----------
FRANCE (12.3%)
2,500 C.E.E. (Continentale d'Equipments
Electriques) (10) 89,114
18,000 Compagnie Generale des Eaux (33) 2,230,058
6,575 Crometal (5) 418,064
20,000 Elf Aquitaine (12) 1,820,039
15,000 Emin Leydier (24) 1,043,353
25,000 Eramet (22) 1,310,212
4,300 Eurafrance (34) 1,857,534
10,000 Gaumont SA (20) 828,516
6,396 Groupe NSC (19) 680,268
3,500 La Brosse et DuPont (9) 269,750
18,500 Legrand ADP (10) 2,046,050
15,000 Marine Wendel (34) 1,375,723
19,999 Michelin 'B' (5) 1,079,329
2,500 Promodes C.I. (28) 452,794
1,000 Promodes (28) 282,274
2,500 SAGA (Societe Anontme de Gerance et
d'Armement) (32) 43,353
1,000 Sucriere de Pithiviers-le-Vieil (1) 618,497
2,500 Taittinger (13) 487,476
----------
16,932,402
----------
GERMANY (7.5%)
50,000 Bayer AG (7) 2,027,597
10,000 Bertelsmann AG D.R.C. (25) 1,291,558
5,650 Buderus AG (5) 2,825,000
3,500 Degussa AG (28) 1,590,909
25,000 IVG Holding AG (27) 857,955
5,765 IVG Holding AG 'new' (27) 192,042
35,000 SKW Trostberg AG (4) 950,455
1,000 Axel Springer Verlag AG (20) 594,156
----------
10,329,672
----------
NEW ZEALAND (4.5%)
825,549 Carter Holt Harvey Limited (14) 1,871,704
23,500 Colonial Motor Co. Ltd. (2) 59,089
650,000 * Evergreen Forests Ltd. (14) 270,866
278,500 Independent Press Comm. (20) 1,553,966
1,601,500 Shortland Properties, Ltd. (27) 1,108,517
1,234,030 Tasman Agriculture Limited (1) 976,187
450,000 Wrightson Ltd. (1) 390,937
----------
6,231,265
----------
SWITZERLAND (7.0%)
335 Bank of Intl. Settlements (3) 2,497,205
5,500 Edipresse SA Bearer (20) 1,074,171
2,500 Kuehne & Nagel Intl. AG (32) 1,323,146
400 Lindt & Sprungli AG PC (9) 658,964
850 Schindler Holding AG PC (5) 921,916
6,500 Sika Finanz AG Bearer (7) 1,550,503
3,250 Societe Generale d'Affichage (20) 1,388,185
1 Vetropack Holding AG Bearer (23) 2,385
650 Vetropack Holding AG PC (23) 136,154
----------
9,552,628
----------
CANADA (4.2%)
65,000 Canadian Pacific Ltd. (34) 1,722,500
50,000 Dofasco, Inc. (30) 944,738
20,000 Franco-Nevada Mining Corp. (21) 915,557
100,000 Noranda, Inc. (21) 2,228,707
----------
5,811,502
----------
SWEDEN (4.0%)
70,000 AssiDoman AB (14) 1,943,606
45,000 Bylock & Nordsjofrakt AB 'B' (32) 473,480
50,000 Investor AB Class B (34) 2,202,997
75,000 IRO AB (31) 909,695
----------
5,529,779
----------
LATIN AMERICA (3.8%)
185,000 Antofagasta Holdings plc (21) 1,077,163
30,000 Banco Latinoamericano 'Bladex' (3) 1,522,500
675,000 Ledesma SA (1) 843,906
1,000,000 Siderca S.A.I.C. (12) 1,825,338
---------
5,268,906
---------
HONG KONG (3.7%)
3,887,528 CDL Hotels Intl. Ltd. (16) 2,224,101
1,650,000 Shaw Brothers (Hong Kong) Ltd.(20) 1,962,635
1,000,000 South China Morning Post Holdings
Corp. (25) 827,461
---------
5,014,198
---------
NETHERLANDS (3.4%)
25,000 Apothekers Cooperatie OPG (17) 718,915
33,450 German City Estates NV (27) 516,759
50,000 Philips Electronics NV ADR (11) 2,000,000
20,000 Randstad Holdings NV (29) 1,444,194
---------
4,679,868
---------
UNITED KINGDOM (3.1%)
50,000 BAA plc (32) 416,566
300,000 Berisford plc (34) 737,231
125,000 Blenheim Group plc (20) 1,073,523
75,000 ED & F Man Group plc (34) 222,839
425,000 * McBride plc (10) 989,825
185,000 Royal Doulton plc (9) 856,978
---------
4,296,962
---------
SINGAPORE (2.8%)
375,000 Clipsal Industries Ltd. (10) 1,365,000
649,000 Intraco Ltd. (34) 969,210
150,000 Singapore Bus Service Ltd. (32) 777,063
350,000 Times Publishing Ltd. (25) 790,282
---------
3,901,556
---------
ITALY (2.3%)
165,000 Arnoldo Mondadori Editore SpA (25) 1,342,391
2,750,000 * Montedison non-conv. Savings SpA(34) 1,750,000
---------
3,092,391
---------
</TABLE>
(continued)
<PAGE> 20
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS INTERNATIONAL PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C>
NORWAY (1.7%)
125,000 Schibsted AS (25) $2,305,079
----------
DENMARK (1.6%)
27,500 Carlsberg International A/S Class'B'(9) 1,856,737
3,500 Kobenhavns Lufthavne (32) 356,249
----------
2,212,986
----------
SPAIN (1.4%)
225,000 Energia e Ind. Aragonesas SA (33) 1,247,209
6,500 Corporation Financiera Alba SA (34) 656,556
----------
1,903,765
----------
AUSTRIA (1.4%)
16,500 VAE AG (26) 1,873,216
----------
BELGIUM (0.8%)
5,730 Deceuninck Plastics Ind. SA (4) 989,254
200 Societe Belge de Betons, SA (34) 93,883
----------
1,083,137
----------
MEXICO (0.6%)
750,000 * Grupo Fernandez Editores SA de CV(25) 183,576
175,000 Industrias Penoles SA de CV (21) 619,214
1,921,000 United Mexican States Oil Recovery (12) 0
------------
802,790
------------
FINLAND (0.5%)
10,000 Vaisala Oy A (5) 652,486
------------
SOUTH AFRICA (0.4%)
10,825 Anglo American Platinum Corp.ADR(22) 64,207
35,000 Anglo American Platinum Corp.(22) 207,599
10,192 JCI Ltd. ADR (22) 100,210
25,000 JCI Ltd. (22) 245,805
------------
617,821
------------
ISRAEL (0.4%)
150,000 Israel Land Development Co. Ltd. (34) 549,937
------------
AUSTRALIA (0.4%)
185,000 Eltin Ltd. (22) 424,913
100,000 Motors Holdings Ltd. (2) 69,938
------------
494,851
------------
GREECE (0.1%)
48,200 H. Benrubi & Fils SA (9) 155,465
------------
PORTUGAL (0.1%)
10,000 Companhia de Celulose do Cairna (1) 171,447
------------
SOUTH KOREA (0.1%)
35,000 L.G. Electronics GDR (11) 118,125
------------
MISCELLANEOUS (2.3%)
55,000 North European Oil Royalty Tr. (12) 721,875
50,000 Minorco ADR (34) 1,040,625
675,000 Lonrho plc (34) 1,439,142
------------
3,201,642
------------
TOTAL COMMON STOCK
(83.6%) (COST $104,873,312) $114,838,353
------------
GERMANY (0.9%)
15,000 Hornbach Holdings AG Pfd. (28) $ 1,071,429
1,000 SAP AG Pfd. (8) 137,532
------------
1,208,961
------------
INDONESIA (1.1%)
10,000 Freeport McMoRan Pfd. 'B' (22) 320,000
21,500 Freeport McMoRan Pfd. 'C' (22) 663,812
30,000 Freeport McMoRan Pfd. 'D' (22) 510,000
------------
1,493,812
------------
TOTAL PREFERRED STOCK
(2.0%) (COST $3,054,324) $ 2,702,773
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
U.S. DOLLAR (2.6%)
$ 100,000 Acer Inc. 4.000%
due 06-10-01 (8) $ 329,500
350,000 PT Inti Indorayon Utama 7.000%
due 05-02-06 (24) 264,688
950,000 Cheil Foods & Chemicals Co 3.000%
due 12-31-06 (9) 1,163,750
250,000 Sincere Navigation 3.750%
due 05-26-03 (32) 280,000
250,000 Medya International Ltd. 10.000%
due 06-28-01 (20) 210,000
250,000 PT Pabrik Kertas Tjiwi Kimia
7.250% due 04-21-01 (24) 251,875
750,000 Scandinavian Broadcasting
7.250% due 08-01-05 (20) 701,250
250,000 Tubos de Acero de Mexico SA
7.500% due 06-12-97 (12) 335,875
----------------
TOTAL U.S. DOLLAR (2.6%) $3,536,938
----------------
NON U.S. DOLLAR (3.0%)
$ 3,600,000 FF Alcatel Alstholm 2.500%
due 01-01-04 (11) $ 855,491
687,150 FF Gaumont SA 3.750%
due 01-01-03 (20) 178,003
1,300,000 FF Immobiliere Hoteliere
due 01-01-01 (33) 761,079
1,211,250 FF Compagnie Generale des Eaux
6.000% due 01-01-98 (33) 280,303
450,000 GBP Berisford plc 5.000% (9) 520,172
500,000 GBP BAA plc 5.750%
due 03-29-06 (32) 848,758
55,000,000 JPY Nippon Yusen 2.000%
due 09-29-00 (32) 515,980
320,000 NZ Shortland Properties Inc. 7.500%
due 12-31-98 (27) 216,975
----------------
TOTAL NON-U.S. DOLLAR (3.0%) $4,176,762
TOTAL CONVERTIBLE SUBORDINATED ----------------
DEBENTURES (5.6%)
(COST $6,897,865)
$7,713,700
----------------
</TABLE>
(continued)
<PAGE> 21
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS INTERNATIONAL PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT NON-CONVERTIBLE BONDS VALUE
- --------------------------------------------------------------------
<S> <C> <C>
U.S. DOLLAR (1.6%)
$1,250,000 Federal Republic Of Brazil 6.500%
due 04-15-24 (15) $ 964,844
220,500 Republic of Argentina 6.625%
due 03-31-05 (15) 192,111
500,000 United Mexican States 'A'
6.453% due 12-31-19 (15) 430,625
500,000 United Mexican States 'B'
6.375% 12-31-19 (15) 430,625
250,000 United Mexican States 'C'
6.375% 12-31-19 (15) 215,313
--------------
2,233,517
--------------
NON-U.S. DOLLAR (0.6%)
1,000,000 NZ Republic of New Zealand 10.000%
due 03-15-02 (15) 793,421
--------------
TOTAL NON-CONVERTIBLE BONDS (2.2%)
(COST $2,715,959) $3,026,938
--------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
CONSUMER GOODS (2.2%)
$2,998,000 AT&T Capital Corp.
6.800% 01-06-97 (11) $ 2,995,169
----------------
OIL AND ENERGY (1.6%)
1,100,000 Exxon Imperial U.S.
6.000% 01-02-97 (12) 1,099,817
1,200,000 Exxon Imperial U.S.
6.000% 01-03-97 (12) 1,199,600
----------------
2,299,417
FINANCE (0.6%)
808,000 Merrill Lynch
6.600% 01-02-97 (3) 807,852
----------------
TOTAL SHORT-TERM NOTES (4.4%)
(COST $6,102,437) $ 6,102,437
----------------
TOTAL HOLDINGS
(COST $123,643,897) (a) $134,384,201
================
</TABLE>
(a) Also represents cost for Federal income tax purposes.
* Non-income producing securities.
FOREIGN CURRENCIES
NZ - New Zealand Dollar
FF - French Franc
GBP - British Pound
JPY - Japanese Yen
Industry Classifications
(1) Agriculture (18) Insurance
(2) Automotive (19) Machinery
(3) Banking (20) Media
(4) Building Products (21) Metal (non-ferrous)
(5) Capital Goods (22) Mining
(6) Cement (23) Packaging
(7) Chemicals (24) Paper
(8) Computer Products (25) Publishing
(9) Consumer Products (26) Rail Equipment
(10) Electrical Products (27) Real Estate
(11) Electronics (28) Retailing
(12) Energy and Oil (29) Services
(13) Food & Beverage (30) Steel
(14) Forest Products (31) Textile
(15) Governmental (32) Transportation
(16) Hotels (33) Utilities
(17) Health Care (34) Miscellaneous
The accompanying notes are an integral part of these financial statements.
<PAGE> 22
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS CAPITAL APPRECIATION PORTFOLIO
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT LONG-TERM BONDS & NOTES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT (4.7%)
$100,000 U.S. Treasury Note
5.750% 10-31-97 $100,158
100,000 U.S. Treasury Note
7.375% 11-15-97 101,459
250,000 U.S. Treasury Note
6.125% 07-31-00 250,023
1,000,000 U.S. Treasury Note
5.500% 02-28-99 991,520
250,000 U. S. Treasury Note
6.750% 05-31-99 254,305
100,000 FNMA
5.370% 02-07-01 96,519
--------------
1,793,984
--------------
BUSINESS SERVICES (0.6%)
450,000 Silicon Graphics, zero coupon
contracts due 11-02-13 234,563
--------------
COMMUNICATIONS (2.5%)
550,000 Cellular Communications, zero
coupon contracts due 07-27-99 480,563
500,000 Comcast Cable
3.375% 09-09-05 460,000
--------------
940,563
--------------
DRUGS (0.6%)
500,000 Alza Corp., zero coupon
contracts due 07-14-14 209,375
--------------
FINANCE (1.9%)
650,000 Tennessee Valley Authority
5.980% 04-01-36 658,938
50,000 UBS Finance
2.000% 12-15-00 46,500
--------------
705,438
--------------
FOREIGN (3.6%)
450,000 Homestake Mining
5.500% 06-23-00 435,375
100,000 Peninsula & Oriental
7.250% 05-19-03 176,234
700,000 Sandoz Cap.
2.000% 10-06-02 752,500
--------------
1,364,109
--------------
HOUSING AND RELATED (0.4%)
150,000 Home Depot
3.250% 10-01-01 147,000
--------------
INSURANCE (1.5%)
150,000 Chubb Capital Corp.
6.000% 05-15-98 182,625
250,000 Grand Metropolitan
6.500% 01-31-00 290,000
100,000 Grand Metropolitan -144A
6.500% 01-31-00 118,000
--------------
590,625
--------------
INDUSTRIAL SERVICES (1.0%)
$430,000 WMX Technologies
2.000% 01-24-05 $401,513
--------------
MEDIA AND PUBLISHING (1.4%)
1,400,000 Time Warner, zero coupon
contracts due 12-17-12 525,000
--------------
OIL, ENERGY AND NATURAL GAS (1.4%)
425,000 Enserch Corp.
6.375% 04-01-02 435,625
100,000 Price Co.
5.500% 02-28-12 103,000
--------------
538,625
--------------
TOTAL LONG-TERM BONDS & NOTES
(19.6%)(COST $7,346,431) $7,450,793
--------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
GOVERNMENT (1.7%)
$648,000 US Treasury Bill
4.815% 03-06-97 $642,181
--------------
FINANCE (4.2%)
1,000,000 Corporate Asset Funding
5.380% 01-17-97 997,609
597,000 Island Finance Puerto Rico
5.500% 01-09-97 596,270
--------------
1,593,879
--------------
FOOD AND RELATED (2.3%)
884,000 Sysco Corp.
5.800% 01-14-97 882,149
--------------
PUBLISHING (2.6%)
1,000,000 Dow Jones
5.350% 02-05-97 994,799
--------------
UTILITIES (2.2%)
833,000 Northern States Power
6.000% 01-07-97 832,167
--------------
MISCELLANEOUS (2.5%)
940,000 Mobil Australia Finance
5.400% 01-02-97 939,859
--------------
TOTAL SHORT TERM NOTES
(15.5%) (COST $5,885,305) $5,885,033
--------------
</TABLE>
<PAGE> 23
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS CAPITAL APPRECIATION PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
COMPUTER AND RELATED (4.1%)
$2,750,000 Automatic Data Process, zero
coupon contracts due 02-20-12 $1,570,938
--------------
DRUGS (0.4%)
200,000 Mckesson Co., 4.500% conv.
subordinated debentures,
due 03-01-04 176,250
--------------
DURABLE GOODS (0.6%)
100,000 Outboard Marine, 7.000% conv.
subordinated debentures,
due 07-01-02 97,500
--------------
INSURANCE (1.2%)
775,000 USF&G, zero coupon contracts
due 03-03-09 489,219
--------------
ELECTRICAL EQUIPMENT (0.2%)
95,000 Cooper Industries Inc., conv.
7.050% 01-01-15 101,413
--------------
MEDIA (2.5%)
850,000 TBS, zero coupon contracts
due 02-13-07 413,313
1,500,000 US West, zero coupon contracts
due 06-25-11 536,250
--------------
949,563
--------------
REAL ESTATE (1.8%)
650,000 Rouse Co., 5.750% conv. subordinated
debentures, due 07-23-02 708,500
--------------
RETAIL (0.6%)
400,000 Office Depot zero coupon
contracts due 11-01-08 235,500
--------------
UTILITIES (0.5%)
200,000 Potomac Electricity & Power Co.,
5.000% conv. subordinated
debentures, due 09-01-02 185,000
--------------
MISCELLANEOUS (0.5%)
125,000 Lonrho 6.000% conv. subordinated
debenture, due 02-27-04 192,991
--------------
TOTAL CONVERTIBLE DEBENTURES
(12.4%) (COST $4,452,927) $4,706,873
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- ------------------------------------------------------------------
<S> <C> <C>
COMPUTER AND RELATED (0.8%)
2,000 IBM Corp. $302,000
--------------
BUILDING MATERIALS (3.7%)
12,000 Lowes Corp. 1,131,000
25,000 Schuller Corp. 265,625
--------------
1,396,625
--------------
CHEMICALS (4.5%)
24,000 * Genetech Inc. $1,287,000
9,000 Great Lakes Chemical Corp. 420,750
1,000 * Millenium Chemicals 17,750
--------------
1,725,500
--------------
BUSINESS SERVICES (0.7%)
6,000 PHH Corp. 258,000
--------------
CONSUMER PRODUCTS (3.2%)
7,000 Corning, Inc. 323,750
90,000 * Petrie Stores 247,500
2,600 Phillip Morris Cos., Inc. 292,825
6,000 Polaroid Corp. 261,000
3,000 * Toys R Us 90,000
--------------
1,215,075
--------------
DRUGS (0.6%)
2,000 Schering - Plough Corp. 129,500
85 * Novartis AG-Bearer 96,880
--------------
226,380
--------------
DURABLE GOODS (0.1%)
3,000 A T Cross Co. 34,875
2,000 * English China Clays 6,630
--------------
41,505
--------------
FINANCE (3.1%)
5,000 American Express 282,500
3,200 Federal Nat'l Mortgage Assn. 119,200
4,200 Fund American Enterprise 402,150
4,200 Student Loan Marketing 391,125
--------------
1,194,975
--------------
FOOD AND RELATED (0.1%)
2,500 McCormick & Company, Inc. 58,906
--------------
Forestry and Paper Products (1.2%)
1,500 International Paper Co. 60,563
8,000 Weyerhaeuser Co. 379,000
--------------
439,563
--------------
INDUSTRIAL SERVICES (0.4%)
25,000 Hanson Trust 168,750
--------------
INSURANCE (1.8%)
4,000 Alexander & Alexander 69,500
4,500 Harleysville Group Inc. 137,250
4,500 Unitrin, Inc. 250,875
10,000 Willis Corroon Group plc 115,000
3,700 Zurich Reinsurance 115,625
--------------
688,250
--------------
MEDIA AND PUBLISHING (6.4%)
12,000 * Chris-Craft Ind., Inc. 500,050
2,500 Meredith Corp. 131,875
23,000 New York Times Co. Class A 874,000
8,000 Readers Digest 290,000
1,200 Times Mirror Co. Class A 59,700
2,000 Washington Post Class B 670,250
--------------
2,525,875
--------------
</TABLE>
<PAGE> 24
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS CAPITAL APPRECIATION PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- ------------------------------------------------------------------
<S> <C> <C>
METALS AND MINING (3.3%)
10,000 Allegheny Teledyne, Inc. $230,000
3,000 * Helcla Mining Co. 16,875
17,000 Homestake Mining Co. 242,250
11,100 Newmont Mining Corp. 496,725
1,500 Prime Resources Group 10,617
18,500 Santa Fe Pacific Gold 284,438
--------------
1,280,905
--------------
OIL, ENERGY AND NATURAL GAS (10.0%)
16,000 Amerada Hess Corp. 926,000
3,000 Atlantic Richfield Co. 397,500
1,500 Kerr McGee 108,000
17,500 Mitchell Energy & Development 387,188
12,000 Murphy Oil Corp. 667,500
6,000 * Oryx Energy Co. 148,500
3,000 Petro-Canada Inc. 42,357
9,000 Sun Company, Inc. 219,375
5,000 Texaco, Inc. 490,625
15,000 Union Texas Petroleum 335,625
--------------
3,722,670
--------------
RETAIL (0.3%)
6,000 * Hill Stores Co. 36,000
4,000 Wal-Mart Stores, Inc. 91,500
--------------
127,500
--------------
TRANSPORTATION (0.9%)
12,000 Overseas Shipholding Inc. 204,000
4,000 Ryder System, Inc. 112,500
--------------
316,500
--------------
UTILITIES (6.4%)
145,000 Centerior Energy Corp. 1,558,750
8,000 Entergy Corp. 222,000
5,000 Ohio Edison Co. 113,750
3,000 Public Service Co. New Mexico 58,875
18,000 Unicom Corp. 488,250
--------------
2,441,625
--------------
MISCELLANEOUS (0.1%)
1,250 * Imperial Tobacco Group 16,125
22,000 * Lonrho Plc 47,300
--------------
63,425
--------------
TOTAL COMMON STOCK (47.6%)
(COST $15,187,266) $18,194,028
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES PREFERRED STOCK VALUE
- -----------------------------------------------------------------
<S> <C> <C>
COMPUTER AND RELATED (0.4%)
2,000 Microsoft Covt. Preferred A $160,250
--------------
FINANCE (1.0%)
7,000 Kemper Co., 5.750% Series E 364,000
--------------
FORESTRY AND PAPER PRODUCTS (0.1%)
1,000 International Paper 46,239
--------------
UTILITIES (2.8%)
265 Cleveland Electric 9.000% 266,823
150 Cleveland Electric 8.800% 149,532
4,940 Cleveland Electric 400,140
2,894 Entergy Gulf Series B 140,359
1,000 Niagara Mohawk Power Series A 17,750
1,000 Niagara Mohawk Power Series B 19,625
3,700 Niagara Mohawk Power Series C 70,300
--------------
1,064,529
--------------
TOTAL PREFERRED STOCK (4.3%)
(COST $1,518,528) $1,635,018
--------------
</TABLE>
<TABLE>
<CAPTION>
PUT OPTION PURCHASES MARKET
SHARES STOCK/EXPIRATION/EXERCISE PRICE VALUE
- -----------------------------------------------------------------
<S> <C> <C>
5 AlleghenyTeledyne
January'97'/$20 $32
5 Allegheny Teledyne
February'97'/$22.50 188
5 Allegheny Teledyne
April'97'/$25 1,282
10 Amerada Hess/May'97'/$60 3,875
4 AUD'B'/February'97'/$50 2,750
20 AUD'B'/February'97'/$45 5,000
11 AUD'B'/February'97'/$40 482
20 HFS/July'97'/$60 17,250
10 HFS/April'97'/$60 6,375
10 HFS/April'97'/$85 25,125
10 Home Depot/May'97'/$60 9,750
5 IBM/July'97'/$170 11,188
5 IBM/July'97'/$160 7,875
5 IBM/July'97'/$155 6,563
5 IBM VF/April'97'/$140 2,500
10 Microsoft/July'97'/$85 8,125
2 Phillip Morris/March'97'/$105 425
5 Phillip Morris/March'97'/$115 3,000
10 Schering-Plough/May'97'/$75 10,375
10 Schering-Plough/May'97'/$70 6,250
10 Silicon Graphics/Feb.'97'/$30 4,500
5 Texaco/April'97'/$95 1,438
5 Times Mirror/March'97'/$50 594
4 Toys R Us/March'97'/$35 2,000
5 Toys R Us/January'97'/$35 2,438
20 Toys R Us/June'97'/$40 19,750
15 Walmart/March'97'/$30 10,125
25 Walmart/March'97'/$27.50 10,938
--------------
TOTAL PUT OPTION PURCHASE
(0.5%) (COST $181,931) $180,189
--------------
TOTAL HOLDINGS
(COST $34,572,388) (a) $38,051,933
==============
</TABLE>
*Non-income producing securities.
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
<PAGE> 25
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS SMALL CAP PORTFOLIO
<TABLE>
<CAPTION>
MARKET
SHARES U.S. COMMON STOCK VALUE
-------------------------------------------------------------------
<S> <C> <C>
AEROSPACE (2.0%)
19,000 * Tracor Inc. $ 403,750
18,700 * Remec Inc. 366,988
----------
770,738
----------
BANKS (0.3%)
2,500 Banco Latinoamericano De Export 126,875
----------
BUSINESS SERVICES (5.5%)
21,775 American Pad and Paper Co. 492,659
3,850 * Caribiner International Inc. 193,463
10,000 Concord EFS, Inc. 282,500
20,400 * Protection One Inc. 201,450
6,800 Rental Service Corp. 187,000
3,050 * Rural/Metro Corp. 109,800
7,000 * Sylvan Learning Systems Inc. 199,500
22,775 * World Color Press, Inc. 438,419
----------
2,104,791
----------
CHEMICALS (1.7%)
18,400 Crompton & Knowles Corp. 354,200
12,025 Teletech Holding Inc. 312,650
----------
666,850
----------
COMMUNICATIONS (0.2%)
2,325 SFX Broadcasting, Inc. 69,169
----------
COMMERCIAL SERVICES (2.1%)
6,000 Harsco Corp. 411,000
14,075 JP Foodservice 392,340
----------
803,340
----------
COMPUTER AND RELATED (18.0%)
33,975 * Avant! Corp. 1,078,702
10,800 BA Merchant Services, Inc. 193,050
9,000 CDW Computer Centers, Inc. 533,813
5,700 * CSG Systems Intl. Inc. 87,638
6,275 * Cybercash Inc. 144,325
12,250 * Dendrite International 101,063
4,975 Farallon Communications 31,591
4,000 * Fore Systems Inc. 131,500
37,450 * Geoworks 917,524
7,400 * Insight Enterprises Inc. 207,200
21,000 * Network General Corp. 635,250
2,000 * Parametric Technology Corp. 102,750
9,750 Premenos Technology Corp. 84,094
53,400 * Ross Systems Inc. 513,975
15,350 * Scopus Technology Inc. 713,775
12,025 * Sterling Commerce Inc. 423,881
25,400 Sync Research Inc. 349,326
8,000 * Synopsys Inc. 370,000
11,975 Vanstar Corp. 293,388
----------
6,912,843
----------
DRUGS (5.2%)
48,400 * Genelabs Technologies 296,450
1,850 Medicis Pharmaceutical A 81,400
4,625 * Nexstar Pharmaceuticals 69,375
8,625 * Parexel International Corp. 445,266
18,250 * SEQUUS Pharmaceuticals 292,000
18,250 * Watson Pharmaceuticals Inc. 820,109
----------
2,004,600
----------
ELECTRONICS (8.5%)
3,875 * Asyst Technologies Inc. $ 66,359
9,250 * Berg Electronics Corp. 271,719
12,075 Cypress Semiconductor 170,559
11,975 International Rectifier Corp. 182,619
8,148 * PRI Automation Inc. 370,734
10,450 * Sanmina Corp. 590,425
15,050 * Sawtek Inc. 596,356
9,250 * Speedfam International Inc. 263,625
23,500 Summit Design, Inc. 240,875
7,125 * Vitesse Semiconductor Corp. 324,188
6,425 Ultrak Inc. 195,963
----------
3,273,422
----------
ENTERTAINMENT AND LEISURE (1.3%)
9,300 Midway Games 188,325
8,450 * Signature Resorts, Inc. 297,863
----------
486,188
----------
ENVIRONMENTAL CONTROL (2.0%)
22,000 * United Waste Systems Inc. 756,250
----------
FINANCE (1.1%)
3,550 * Credit Acceptance Corp. 83,425
10,100 * First USA Paymentech Inc. 342,138
----------
425,563
----------
HOTEL AND MOTEL (2.2%)
18,775 * Doubletree Corp. 844,875
----------
INSURANCE (1.0%)
4,075 Executive Risk Inc. 150,775
4,000 Reliastar Financial Corp. 231,000
----------
381,775
----------
MEDICAL AND RELATED (10.9%)
9,300 Advance Paradigm 192,975
4,375 * Express Scripts Inc. 156,953
7,000 * Gulf South Medical Supply 179,375
6,000 * HCIA Inc. 207,000
12,150 * Heartport Inc. 277,931
14,775 * HPR Inc. 203,156
13,000 * Multicare Companies Inc. 263,250
5,125 NCS Healthcare Inc. 149,266
16,800 Omnicare Inc. 539,700
24,050 * Orthodontic Centers of America 384,800
7,000 Pediatrix Medical Group 258,125
9,000 * Pharmaceutical Product Development 227,250
15,250 Physio-Control Intl. Corp. 343,125
12,300 Rexall Sundown Inc. 334,406
6,000 * Sola International Inc. 228,000
7,100 * Sunrise Assisted Living Inc. 197,913
4,750 * Visible Genetics Inc. 41,563
----------
4,184,788
----------
OIL, ENERGY AND NATURAL GAS (0.9%)
9,000 * Falcon Drilling Co. Inc. 353,250
----------
</TABLE>
<PAGE> 26
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS SMALL CAP PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES U.S. COMMON STOCK VALUE
---------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (0.5%)
7,175 Fairfield Communities Inc. $ 177,581
-----------
RETAIL (5.6%)
8,156 * Consolidated Stores Corp. 262,012
8,000 * Corporate Express, Inc. 235,500
9,025 Men's Wearhouse, Inc. 221,113
11,350 * Proffitt's Inc. 418,531
7,075 * Henry Shein Inc. 243,203
18,725 * The Sports Authority Inc. 407,269
9,250 United Natural Foods 157,250
6,300 * Williams-Sonoma, Inc. 229,163
-----------
2,174,040
-----------
TELECOMMUNICATIONS (10.5%)
6,625 * Cellular Communications Intl. Inc. 192,125
22,475 * Digital Microwave Corp. 626,491
9,000 * Intermedia Comm. of Florida 231,750
3,575 * LCI International Inc. 76,863
6,750 McLeod Inc. 172,125
2,625 * Omnipoint Corp. 50,531
30,275 * P-COM International 897,927
8,175 Pacific Gateway Exchange Inc. 298,388
19,750 * Periphonics Corp. 577,688
9,175 Picturetel Corp. 238,550
4,950 Telco Communications 86,625
9,400 Tel-Save Holdings, Inc. 272,600
4,300 Teltrend, Inc. 119,325
9,100 * Winstar Communications Intl. 191,100
-----------
4,032,086
-----------
TEXTILES (5.4%)
11,525 * Kenneth Cole Products 178,638
12,000 * Nautica Enterprises Inc. 303,000
12,550 * Quicksilver Inc. 268,256
18,000 Warnaco Group 533,250
27,050 Wolverine World Wide 784,450
-----------
2,067,594
-----------
TRANSPORTATION (1.9%)
100,075 * Atlas Air, Inc. 481,081
9,000 Mark VII Inc. 249,188
-----------
730,269
-----------
TOTAL U.S. COMMON STOCK (86.8%)
(COST $27,331,224) $33,346,884
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES FOREIGN COMMON STOCK VALUE
---------------------------------------------------------------------
<S> <C> <C>
BRITISH STERLING POUND:
MEDIA
40,000 * Flextech Plc $ 463,762
RETAIL
36,500 * Next Plc 354,474
MISCELLANEOUS
16,754 Wetherspoon (J.D.) 335,452
-----------
TOTAL BRITISH STERLING POUND (3.0%) 1,153,689
-----------
JAPANESE YEN:
MISCELLANEOUS
8,000 Hoya Corp. 313,604
-----------
TOTAL JAPANESE YEN (0.8%) 313,604
-----------
NETHERLANDS GUILDER:
MISCELLANEOUS
4,530 * Hunter Douglas NV 305,101
TRANSPORTATION
7,100 * IHC Caland 405,131
-----------
TOTAL NETHERLANDS GUILDER (1.9%) 710,232
-----------
TOTAL FOREIGN COMMON STOCK
(5.7%) (COST $1,478,446) $ 2,177,525
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT MASTER NOTES VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
$2,891,858 Provident Insured Money Account $ 2,891,858
-----------
TOTAL MASTER NOTES (7.6%)
(COST $2,891,858) $ 2,891,858
-----------
TOTAL HOLDINGS
(COST $31,701,528) (a) $38,416,267
===========
</TABLE>
* Non-income producing securities.
(a) Also represents cost for Federal income tax purposes.
<PAGE> 27
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS GLOBAL CONTRARIAN PORTFOLIO
<TABLE>
<CAPTION>
MARKET
SHARES U.S. COMMON STOCK VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
CHEMICALS (0.6%)
5,000 Lawter International Inc. $ 63,125
----------
CAPITAL GOODS (4.1%)
1,000 Bandag Inc. Class 'A' 45,750
4,000 Blount International Inc. Cl 'A' 153,500
5,000 Keystone International Inc. 100,625
12,000 Woodhead Industries, Inc. 165,000
----------
464,875
----------
CONSUMER PRODUCTS (2.2%)
1,000 Allen Organ Co. Class 'B' 38,500
1,000 Dole Foods Company, Inc. 33,875
5,000 Furniture Brands International Inc. 70,000
10,000 Hancock Fabrics 103,750
----------
246,125
----------
ENERGY AND OIL (3.7%)
2,535 * Enterra Corp. 76,050
4,000 North European Oil Royalty Trust 52,500
1,700 Rochester & Pittsburgh Coal Co. 44,625
30,000 San Juan Basin Royalty Trust 247,500
----------
420,675
----------
FINANCE (3.7%)
8,000 * Classic Bankshares Inc. 92,000
5,000 * East Texas Financial Services 82,500
8,000 * First Federal Financial Services 95,000
8,500 Redwood Financial Inc. 85,531
5,000 Southern Banc Co., Inc. 65,000
----------
420,031
----------
FORESTRY PRODUCTS (2.0%)
1,000 Georgia Pacific Corp. 72,000
3,400 Greif Brothers Corp. Class 'A' 96,900
1,500 Rayonier Inc. 57,563
----------
226,463
----------
MEDIA (0.1%)
5,000 * Integrity Music, Inc. Class 'A' 8,125
----------
METALS AND MINING (1.2%)
3,000 Asarco Inc. 74,625
1,000 Reynolds Metals Co. 56,375
----------
131,000
----------
REAL ESTATE (0.9%)
2,000 Alico, Inc. 37,500
1,000 Forest City Enterprises Inc. 'A' 60,500
----------
98,000
----------
TRANSPORTATION (0.6%)
3,500 Kenan Transport Company 66,500
----------
UTILITIES (0.4%)
2,000 Montana Power Co. 42,750
----------
MISCELLANEOUS (2.8%)
15,000 * Kaiser Ventures Inc. 135,000
1,500 Pioneer Group, Inc. 35,625
4,000 UniFirst Corp. 85,000
3,000 Zero Corporation 60,000
----------
315,625
----------
TOTAL U.S. COMMON STOCK $2,503,294
(22.3%) (COST $2,307,523) ----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES FOREIGN COMMON STOCK VALUE
- --------------------------------------------------------------------
<S> <C> <C>
FRANCE (5.6%)
2,150 Emin-Leydier (14) $149,547
2,000 Eramet (14) 104,817
200 Eurafrance (34) 86,397
250 FIMALAC SA (34) 23,218
1,000 Legrand ADP (10) 110,597
750 Marine Wendel (34) 68,786
300 Groupe NSC (19) 31,908
900 Rougier SA (14) 52,890
--------
628,160
--------
JAPAN (5.4%)
10,000 Airport Facilities Co., Ltd. (32) 77,533
7,000 Dai Tokyo Fire & Marine Ins. Co. (18) 37,086
12,000 Dowa Fire & Marine Ins. Co. (18) 46,106
2,500 Fuji Photo Film Co. Ltd. (9) 82,271
2,500 Fuji Photo Film Co. Ltd. ADR (9) 82,500
2,000 Koekisha Co. Ltd. (29) 68,918
7,000 Nittetsu Mining Co., Ltd. (22) 53,007
5,000 Tokio Marine & Fire Ins. Co. Ltd. (18) 46,950
400 Toho Co. (20) 57,891
5,000 Yoshimoto Kogyo Co. (20) 59,442
--------
611,704
--------
GERMANY (2.9%)
100 Axel Springer Verlag AG (20) 59,416
2,500 Bayer AG (7) 101,380
325 Buderus AG (5) 162,500
--------
323,296
--------
SINGAPORE (3.7%)
35,000 Cilpsal Industries Ltd. (10) 127,400
85,000 Intraco Ltd. (34) 126,938
6,500 Singapore Bus Service Ltd. (32) 33,673
143,000 * Thakral Corporation (10) 127,985
--------
415,996
--------
SWITZERLAND (3.0%)
7 Bank of Intl. Settlements (3) 52,180
2 Bank of Intl. Settlements (3) 14,644
300 Kuehne & Nagel Intl. AG (32) 158,777
65 Schindler Holding AG PC (5) 70,499
175 Sika Finanz AG Bearer (7) 41,744
--------
337,844
--------
LATIN AMERICA (3.0%)
10,000 Antofagasta Holdings plc (21) 58,225
50,000 Cresud SA (1) 88,516
25,000 IRSA Inversiones y Rep. SA (34) 80,265
35,000 Ledesma SA (1) 43,758
265,000 Grupo Fernandez Editors (25) 64,864
--------
335,628
--------
UNITED KINGDOM (1.8%)
70,000 ED & F Man (34) 207,983
--------
HONG KONG (1.6%)
101,000 CDL Hotels Intl. Ltd. (16) 57,783
300,000 China-Hong Kong Photo Products (9) 100,847
16,000 Shaw Brothers (Hong Kong) Ltd.(20) 19,032
--------
177,662
--------
</TABLE>
<PAGE> 28
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS GLOBAL CONTRARIAN PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES FOREIGN COMMON STOCK VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
NEW ZEALAND (1.5%)
60,000 Carter Holt Harvey Limited (14) $ 136,033
5,500 Shortland Properties, Ltd. (27) 3,807
30,000 Wrightson Ltd. (1) 26,062
----------
165,902
----------
BELGIUM (1.1%)
700 Engrais Rosier SA (34) 123,498
----------
PORTUGAL (0.9%)
8,000 Espirito Santo Financial Holdings (3) 106,000
----------
SOUTH AFRICA (0.9%)
10,000 Vaal Reefs Exploration Ltd. (21) 61,875
2,500 Western Areas Gold Mining Ltd. (21) 34,466
----------
96,341
----------
THAILAND (0.8%)
20,000 Oriental Hotel (16) 93,553
----------
NETHERLANDS (0.7%)
1,300 Bosch & Keuning NV (20) 44,379
2,000 German City Estates NV (27) 30,897
----------
75,276
----------
SPAIN (0.6%)
12,000 Energia e Industrias Aragonesas (7) 66,518
----------
PHILIPPINES (0.6%)
70,000,000 Manila Mining Corp. 'B' (22) 63,878
----------
SWEDEN (0.5%)
5,000 Bylock & Nordsjofrakt AB 'B'(32) 52,609
----------
CANADA (0.4%)
2,000 Noranda, Inc. (21) 44,574
----------
AUSTRALIA (0.4%)
171,425 Medical Corporation Australasia (34) 45,300
----------
MISCELLANEOUS (1.8%)
100,000 Lonrho plc (34) 213,206
----------
TOTAL FOREIGN COMMON STOCK $4,184,928
(37.2%) (COST $4,140,101) ----------
TOTAL COMMON STOCKS
(59.5%) (COST $6,447,624) $6,688,222
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES U.S. PREFERRED STOCK VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
MEDIA (0.4%)
2,000 Cowles Media Co. Pfd. 52,000
---------
REAL ESTATE (0.7%)
1,500 Catellus Development Pfd. 'B' 88,688
---------
TOTAL U.S. PREFERRED STOCK $ 140,688
(1.1%) (COST $104,375) ---------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES FOREIGN PREFERRED STOCK VALUE
-------------------------------------------------------------------
<S> <C> <C>
GERMANY (0.9%)
1,500 Hornbach Holdings AG (28) $ 107,143
---------
INDONESIA (1.8%)
4,000 Freeport McMoRan Pfd. 'C' (22) 123,500
5,000 Freeport McMoRan Pfd. 'D' (22) 85,000
---------
208,500
---------
ITALY (0.9%)
9,000 Istituto Finanziario Industriale (34) 100,494
---------
TOTAL FOREIGN PREFERRED STOCK
(3.6%) (COST $384,950) $ 416,137
---------
TOTAL PREFERRED STOCK
(4.7%) (COST $489,325) $ 556,825
---------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
-------------------------------------------------------------------
<S> <C> <C>
U.S. DOLLAR (0.5%)
$50,000 Cheil Jedang 3.000%
due 12-31-06 (9) $ 61,250
---------
NON-U.S. DOLLAR (0.7%)
520,000 FF Immobiliere Hoteliere 5.000%
due 01-01-01 (16) 76,108
11,000 NZ Shortland Properties Inc. 7.500%
due 12-31-98 (27) 7,459
----------
83,567
----------
TOTAL CONVERTIBLE DEBENTURES
(1.2%) (COST $128,642) $ 144,817
----------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT NON-CONVERTIBLE BONDS VALUE
-------------------------------------------------------------------
<S> <C> <C>
U.S. DOLLAR (6.6%)
$50,000 Cemex SA 9.500%
due 09-20-01 (6) $ 51,188
150,000 Federal Republic Of Brazil 6.500%
due 04-15-06 (15) 130,875
343,000 Republic of Argentina FRB 6.625%
due 03-31-05 (15) 298,839
250,000 Republic of Venezuela 6.500%
due 12-18-07 (15) 212,500
50,000 PT Pabrik Kertas Tjiwi Kimia
13.250% due 08-01-01 (14) 56,875
---------
TOTAL NON-CONVERTIBLE BONDS
(6.6%) (COST $630,447) $ 750,277
---------
</TABLE>
<PAGE> 29
OHIO NATIONAL FUND, INC. December 31, 1996
SCHEDULE OF INVESTMENTS GLOBAL CONTRARIAN PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
FINANCE (9.4%)
$500,000 American Express 5.500%
due 01-02-97 $ 499,924
558,000 Merril Lynch 6.600%
due 01-02-97 557,898
------------
1,057,822
------------
CONSUMER GOODS (11.7%)
540,000 AT&T Corp. 5.560%
due 01-02-97 539,917
540,000 General Electric Cap. Corp.
5.550% due 01-03-97 539,834
243,000 General Electric Cap. Corp.
5.630% due 01-21-97 242,240
------------
1,321,991
------------
OIL (4.7%)
530,000 Exxon Imperial U.S.
5.900% due 01-06-97 529,563
------------
TOTAL SHORT-TERM NOTES
(25.8%) (COST $2,909,377) $ 2,909,376
------------
TOTAL HOLDINGS
(COST $10,605,415)(a) $ 11,049,517
============
</TABLE>
(a) Also represents cost for Federal Income tax purposes. FOREIGN CURRENCIES
* Non-income producing securities. NZ - New Zealand Dollar
FF - French Franc
Industry Classifications
(1) Agriculture (12) Energy and Oil (23) Packaging
(2) Automotive (13) Food & Beverage (24) Paper
(3) Banking (14) Forest Products (25) Publishing
(4) Building Products (15) Governmental (26) Rail Equipment
(5) Capital Goods (16) Hotels (27) Real Estate
(6) Cement (17) Health Care (28) Retailing
(7) Chemicals (18) Insurance (29) Services
(8) Computer Products (19) Machinery (30) Steel
(9) Consumer Products (20) Media (31) Textile
(10) Electrical Products (21) Metal (non-ferrous) (32) Transportation
(11) Electronics (22) Mining (33) Utilities
(34) Miscellaneous
The accompanying notes are an integral part of these financial statements.
<PAGE> 30
OHIO NATIONAL FUND, INC. DECEMBER 31, 1996
SCHEDULE OF INVESTMENTS AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- ----------------------------------------------------------------
<S> <C> <C>
U.S. COMMON STOCKS:
AEROSPACE (0.2%)
275 Boeing Co. $29,253
-------------
AUTOMOTIVE AND RELATED (1.2%)
3,425 * Custom Chrome, Inc. 68,928
700 General Motors Corp. 39,025
750 Harley-Davidson, Inc. 35,250
-------------
143,203
-------------
BANKING (3.7%)
675 BankAmerica Corp. 67,331
1,254 Chase Manhattan Corp. 111,920
425 First Bank System, Inc. 29,006
1,200 Household International, Inc. 110,700
2,850 TCF Financial Corp. 124,042
-------------
442,999
-------------
BUSINESS SERVICES (5.2%)
600 * Checkfree Corporation 10,275
13,575 Danka Business Systems PLC ADR 480,246
2,050 Interim Services, Inc. 72,775
700 Manpower, Inc. 22,750
1,150 MoneyGram Payment Systems, Inc. 15,238
1,250 Universal Outdoor Holdings, Inc. 29,375
-------------
630,659
-------------
COMMERCIAL SERVICES (10.1%)
13,398 * Accustaff, Inc. 283,033
4,150 * Consolidated Graphics, Inc. 232,400
13,400 CUC International, Inc. 318,250
3,000 Getty Communications PLC ADR 45,000
5,650 * Greenwich Air Services, Inc. 125,713
3,300 Hexcel Corp. 53,625
6,800 * PIA Merchandising Services, Inc. 71,320
1,100 Pittston Company Brinks Group 29,700
850 * Vallen Corp. 14,131
1,500 Wilmar Industries, Inc. 41,625
-------------
1,214,797
-------------
COMPUTER AND RELATED (7.9%)
150 America Online, Inc. 4,988
1,600 BroadVision, Inc. 12,600
750 Cisco Systems, Inc. 47,719
1,200 Computer Associates Intl. Inc. 59,700
5,000 Creative Technology, Ltd. 58,750
2,000 IA Corporation 11,750
1,675 Intel Corp. 219,320
1,400 International Business Machines Corp. 211,400
1,810 * McAfee Associates, Inc. 79,640
200 * Micro Systems, Inc. 6,150
2,260 National Techteam, Inc. 45,200
1,400 OneWave, Inc. 10,938
550 Phoenix International, Inc. 9,488
600 Select Software Tools, Ltd. ADR 10,950
900 Sterling Commerce, Inc. 31,725
2,837 * Sykes Enterprises, Inc. 106,388
750 TriTeal Corp. 15,938
-------------
942,642
-------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- ----------------------------------------------------------------
<S> <C> <C>
COMMUNICATIONS (1.7%)
700 American Radio Systems Corp., Cl. A $19,075
75 Ascend Communications, Inc. 4,659
600 Cascade Communications Corp. 33,075
700 Clear Channel Communications, Inc. 25,288
600 Comcast Corp. Class A 10,688
550 Harmonic Lightwaves, Inc. 8,456
1,400 TeleCommunications, Inc. Cl. A 18,288
1,200 U. S. West Inc. Media Group 22,200
1,950 Young Broadcasting, Inc. Cl. A 57,038
-------------
198,766
-------------
CONSUMER PRODUCTS (4.2%)
7,775 McKesson Corp. 435,400
350 Newell Companies, Inc. 11,025
600 Philip Morris Companies, Inc. 67,716
-------------
514,141
-------------
DRUGS (3.8%)
1,900 Bergen Brunswig Corp. Cl. A 54,150
350 Eli Lilly & Company 25,550
31,600 Foxmeyer Health Corp. 51,350
20,400 Halsey Drug Co., Inc. 124,950
5,095 Pharmacia & Upjohn, Inc. 201,978
-------------
457,978
-------------
ELECTRICAL EQUIPMENT (0.5%)
10,150 Fedders Corp. Class A 50,750
400 Scientific-Atlanta, Inc. 6,000
-------------
56,750
-------------
ELECTRONICS (2.1%)
400 Cypress Semiconductor, Inc. 5,650
1,475 Harman International Industries, Inc. 82,046
625 Motorola, Inc. 38,359
200 SDL, Inc. 5,250
475 Sensormatic Electronics Corp. 7,956
500 Texas Instruments, Inc. 31,875
650 Uniphase Corp. 34,125
2,500 * Universal Electronics Inc. 13,750
375 U.S. Robotics, Inc. 27,000
225 Xerox Corp. 11,856
-------------
257,868
-------------
ENTERTAINMENT AND LEISURE (2.0%)
4,425 Circus Circus Enterprises, Inc. 152,109
825 Mattel, Inc. 22,894
1,425 SCP Pool Corp. 29,569
550 The Walt Disney Co. 38,294
-------------
242,866
-------------
FINANCE (3.4%)
1,600 American Express Co. 90,400
2,750 * Associates First Capital Corp. 121,317
1,025 Citicorp 105,575
2,350 Mercury Finance Co. 28,788
700 MGIC Investment Corp. 53,200
500 The Quick and Reilly Group, Inc. 14,938
-------------
414,217
-------------
</TABLE>
(continued)
<PAGE> 31
OHIO NATIONAL FUND, INC. DECEMBER 31, 1996
SCHEDULE OF INVESTMENTS AGGRESSIVE GROWTH PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
- -----------------------------------------------------------------
<S> <C> <C>
FOOD AND RELATED (4.3%)
2,400 * Casa Ole' Restaurants, Inc. $22,200
3,325 * Longhorn Steaks, Inc. 62,746
2,000 McDonald's Corp. 90,500
12,225 * Quality Dining, Inc. 218,522
5,200 * Rainforest Cafe, Inc. 122,260
--------------
516,228
--------------
FORESTRY AND PAPER PRODUCTS (0%)
200 Buckeye Cellulose Corp. 5,325
--------------
HOTEL/LODGING (1.8%)
3,400 Candlewood Hotel Co. Inc. 32,725
600 Hilton Hotels Corp. 15,675
2,350 LaQuinta Inns, Inc. 44,944
6,200 Red Roof Inns, Inc. 96,159
250 Signature Resorts, Inc. 8,813
1,400 Sholodge Inc. 18,900
--------------
217,216
--------------
HOUSING AND RELATED (0.8%)
3,450 Diamond Home Services, Inc. 94,875
--------------
INSURANCE (2.7%)
350 Conesco, Inc. 22,313
9,825 * United Dental Care, Inc. 298,121
--------------
320,434
--------------
MANUFACTURING (0.6%)
1,500 Applied Power, Inc. 59,438
150 Minnesota Mining & Manufacturing Co. 12,431
--------------
71,869
--------------
MEDICAL AND RELATED (6.1%)
100 American Healthcorp, Inc. 1,163
2,600 * Cohr, Inc. 70,200
2,250 Dentsply International, Inc. 106,875
5,650 * FemRx, Inc. 25,425
2,125 Humana, Inc. 40,641
2,300 NCS Healthcare, Inc. Cl. A 66,988
950 Omnicare, Inc. 30,519
700 Renal Treatment Centers, Inc. 17,850
2,150 Sabratek Corp. 34,131
450 * Steris Corp. 19,575
10,000 Suburban Ostomy Supply Co., Inc. 137,500
5,175 * Sybron International Corp. 170,775
--------------
721,641
--------------
RETAIL (11.1%)
3,950 Bacou USA, Inc. 65,669
8,250 Central Garden and Pet Co. 173,809
3,718 * Consolidated Stores Corp. 119,457
4,250 * Corporate Express, Inc. 125,109
2,850 * Federated Department Stores, Inc. 97,256
200 Goodys Family Clothing, Inc. 3,575
2,050 The Home Depot, Inc. 102,756
16,850 * Movie Gallery, Inc. 219,062
1,250 * MSC Industrial Direct Co., Inc. Cl. A 46,250
9,375 OfficeMax, Inc. 99,609
2,150 Revco D.S., Inc. 79,550
2,250 Rite Aid Corp. 89,438
3,000 Stein Mart, Inc. 60,750
2,650 Zale Corp. 50,703
--------------
1,332,993
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES COMMON STOCK VALUE
-----------------------------------------------------------------
<S> <C> <C>
OIL, ENERGY AND NATURAL GAS (15.9%)
350 Barrett Resources Corp. $14,919
1,350 Chesapeake Energy Corp. 75,094
1,600 Cooper Cameron Corp. 122,686
250 Enron Corp. 10,781
11,675 * Flores & Rucks, Inc. 621,694
2,100 * Global Marine, Inc. 43,313
500 Marine Drilling Co., Inc. 9,844
4,350 Nabors Industries, Inc. 83,738
600 National Oilwell, Inc. 18,450
8,250 Noble Drilling Corp. 163,969
475 * Nuevo Energy Co. 24,700
2,800 Oceaneering International, Inc. 44,237
1,300 Rowan Companies, Inc. 29,413
350 Schlumberger, Ltd. 34,956
1,900 3DX Technologies, Inc. 20,900
1,825 * Triton Energy, Ltd. 88,513
17,200 Union Pacific Resources Group, Inc. 503,132
--------------
1,910,336
--------------
TELECOMMUNICATIONS (1.5%)
850 Aware Inc. 8,606
1,825 Belden, Inc. 67,525
925 Cincinnati Bell, Inc. 57,004
2,600 * Loral Space & Communications Ltd. 47,775
--------------
180,910
--------------
TRANSPORTATION (2.2%)
500 Atlas Air, Inc. 23,875
1,150 Burlington Northern Santa Fe Corp. 99,331
2,725 * Coach USA, Inc. 79,025
2,275 * Hub Group, Inc. Cl. A 60,856
--------------
263,088
--------------
UTILITIES (0.2%)
700 WICOR, Inc. 25,113
--------------
TOTAL U.S. (93.2%)
(COST $10,659,963) $11,206,163
--------------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT REPURCHASE AGREEMENTS VALUE
-----------------------------------------------------------------
<S> <C> <C>
$802,000 Provident Bank 6.000% due 01-02-97
repurchase price $802,267 $802,000
collateralized by U.S. Treasury --------------
Notes, due 08-31-98 (cost $804,000)
TOTAL REPURCHASE AGREEMENTS (6.7%)
(COST $802,000) $802,000
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES WARRANTS VALUE
-----------------------------------------------------------------
<S> <C> <C>
81 Laboratory Corp. of America $8
--------------
TOTAL WARRANTS (0.0%)
(COST $189) $8
--------------
TOTAL HOLDINGS
(COST $11,462,152) (A) $12,008,171
==============
</TABLE>
*Non-income producing securities.
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
<PAGE> 32
OHIO NATIONAL FUND, INC. DECEMBER 31, 1996
NOTES TO FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Ohio National Fund, Inc. (Fund) is registered under the Investment
Company Act of 1940 as amended (the "1940 Act"), as a diversified
open-end management investment company. The Fund is a series investment
company which consists of nine separate investment portfolios that seek
the following investment objectives:
EQUITY PORTFOLIO--long-term growth of capital by investing principally
in common stocks or other equity securities. Current income is a
secondary objective.
MONEY MARKET PORTFOLIO--maximum current income consistent with
preservation of capital and liquidity by investing in high quality
money market instruments.
BOND PORTFOLIO--high level of return consistent with preservation of
capital by investing primarily in high quality intermediate and
long-term debt securities.
OMNI PORTFOLIO--high level of long-term total return consistent with
preservation of capital by investing in stocks, bonds and money market
instruments.
INTERNATIONAL PORTFOLIO--long-term capital growth by investing
primarily in common stocks of foreign companies.
CAPITAL APPRECIATION PORTFOLIO--maximum capital growth by investing
primarily in common stocks that are (1) considered to be undervalued or
temporarily out of favor with investors, or (2) expected to increase in
price over the short term.
SMALL CAP PORTFOLIO-maximum capital growth by investing primarily in
common stocks of small and medium size companies.
GLOBAL CONTRARIAN PORTFOLIO--long-term growth of capital by investing
in foreign and domestic securities believed to be undervalued or
presently out of favor.
AGGRESSIVE GROWTH PORTFOLIO--capital growth.
The following is a summary of significant accounting policies:
Investments in the Money Market Portfolio are valued at amortized cost
in accordance with Rule 2a-7 which approximates market value. All net
investment income of the Money Market Portfolio is declared and paid
daily as a dividend to shareholders immediately before the computation
of the net asset value of Money Market Portfolio shares. Dividends are
automatically reinvested in additional Money Market Portfolio shares at
the net asset value immediately following such computation.
Distributions arising from net investment income from the remaining
portfolios are declared and paid to shareholders quarterly and are
recorded on the ex-dividend date. Distributions arising from
accumulated net realized capital gains are recorded on the ex-dividend
date and are distributed to shareholders at least once a year.
For all other portfolios, securities which are traded on U.S. and
foreign stock exchanges or in the over-the-counter markets are valued
at the last sale price or, if there has been no sale that day, at the
last bid price reported as of 4:00 p.m. Eastern time on each day the
New York Stock Exchange is open for unrestricted trading.
Over-the-counter securities are valued at the last bid price as of the
close of trading on the Exchange. Short-term investments (investments
with remaining maturities of 60 days or less) are valued at amortized
cost and fixed income securities are valued by using market quotations,
or independent pricing services which use prices provided by market
makers or estimates of market values obtained from yield data relating
to instruments or securities with similar characteristics. All
investments and cash quoted in foreign currencies are valued daily in
U.S. dollars on the basis of the foreign currency exchange rates
prevailing at the time of such valuation.
Foreign currency exchange rates are generally determined prior to 4:00
p.m. Eastern time. Occasionally, events affecting the value of foreign
investments and such exchange rates occur between the time at which
they are determined and the time of valuation, which in the case of the
International, Small Cap, Global Contrarian and Aggressive Growth
Portfolios, would not be reflected in the computation of the
portfolios' net asset value. If events materially affecting the value
of such securities or currency exchange rates occurred during such time
period, the securities are valued at their fair value as determined in
good faith by or under the direction of the Fund's Board of Directors.
In connection with purchases and sales of securities denominated in
foreign currencies, the Fund may enter into forward foreign currency
exchange contracts (forward contract). A forward contract is a
commitment to purchase or sell a foreign currency at a future date, at
a negotiated rate. Additionally, the Fund may enter into such contracts
to hedge certain other foreign currency denominated investments. These
contracts are recorded at market value, and the related realized and
unrealized foreign exchange gains and losses are included in the
statement of operations. In the event that counterparties fail to
settle these currency contracts or the related foreign security trades,
the Fund could be exposed to foreign currency fluctuations.
(continued)
<PAGE> 33
OHIO NATIONAL FUND, INC. DECEMBER 31, 1996
NOTES TO FINANCIAL STATEMENTS (Continued)
<PAGE> 34
OHIO NATIONAL FUND, INC. DECEMBER 31, 1996
NOTES TO FINANCIAL STATEMENTS
Each portfolio other than the Money Market Portfolio, may (a) write
call options traded on a registered national securities exchange if
such portfolio owns the underlying securities subject to such options,
and purchase call options for the purpose of closing out positions it
has written, (b) purchase put options on securities owned, and sell
such options in order to close its positions in put options, (c)
purchase and sell financial futures and options thereon, and (d)
purchase and sell financial index options; provided, however, that no
option or futures contract shall be purchased or sold if, as a result,
more than one-third of the total assets of the portfolio would be
hedged by options or futures contracts, and no more than 5% of any
portfolio's total assets, at market value, may be used for premiums on
open options and initial margin deposits on futures contracts. Options
are recorded at market value, and the related realized and unrealized
gains and losses are included in the statement of operations. The
portfolios making use of options bear the market risk of an unfavorable
change in the price of any security underlying the options.
The Fund may invest in two kinds of financial futures contracts: stock
index futures contracts and interest rate futures contracts. Stock
index futures contracts are contracts developed by and traded on
national commodity exchanges whereby the buyer will, on a specified
future date, pay or receive a final cash payment equal to the
difference between the actual value of the stock index on the last day
of the contract and the value of the stock index established by the
contract multiplied by the specific dollar amount set by the exchange.
Future contracts may be based on broad-based stock indexes such as the
Standard & Poor's 500 Index or on narrow-based stock indexes. A
particular index will be selected according to Ohio National
Investments, Inc. ("ONI's"), the investment advisor to the Fund,
investment strategy for the particular portfolio. The Fund may enter
into such contracts to reduce the risk of fluctuation of portfolio
securities values or to take advantage of expected market fluctuations.
Securities transactions are recorded on a trade date basis. Dividend
income is recognized on the ex-dividend date (except in the case of
foreign securities in the International, Small Cap, Global Contrarian
and Aggressive Growth Portfolios in which dividends are recorded as
soon after the ex-dividend date as the fund becomes aware of such
dividends), and interest income is accrued daily as earned. Net
realized gain or loss on investments and foreign exchange transactions
are determined the first in first out basis except in the case of the
Aggressive Growth Portfolio in which the identified cost basis is used.
The books and records of all the portfolios are maintained in U.S.
dollars. Foreign currency amounts in the International, Small Cap,
Global Contrarian and Aggressive Growth Portfolios are translated into
U.S. dollars on the following basis:
(1) market value of investments, other assets and liabilities --
at exchange rates prevailing at the end of the period.
(2) purchases and sales of investments, income and expenses--at
the rates of exchange prevailing on the respective dates of
such transactions.
Although the net assets and the market value of the portfolios are
presented at the foreign exchange rates at the end of the period, the
portfolios do not generally isolate the effect of fluctuations in
foreign exchange rates from the effect of changes in the market price
of the investments. However, the portfolios do isolate the effect of
fluctuations in foreign exchange rates when determining the gain or
loss upon sale or maturity of foreign-currency denominated debt
obligations pursuant to Federal income tax regulations.
Foreign investment and currency transactions may involve certain
considerations and risks not typically associated with investing in
U.S. companies and the U.S. Government. These risks, including
re-evaluation of currency and future adverse political and economic
developments, could cause investments and their markets to be less
liquid and prices more volatile than those of comparable U.S. companies
and the U.S. Government.
Each portfolio may acquire repurchase agreements from member banks of
the Federal Reserve System which ONI deems creditworthy under
guidelines approved by the Board of Directors, subject to the seller's
agreement to repurchase such securities at a mutually agreed upon date
and price. The repurchase price generally equals the price paid by the
portfolio plus interest negotiated on the basis of current short-term
rates, which may be more or less than the rate on the underlying
portfolio securities. The seller, under a repurchase agreement, is
required to maintain as collateral for the repurchase transaction
securities in which the portfolio has a perfected security interest
with a value not less than 100% of the repurchase price (including
accrued interest). Securities subject to repurchase agreements are held
by the Fund's custodian or another qualified custodian or in the
Federal Reserve/Treasury book-entry system. Repurchase agreements are
considered to be loans by the portfolio under the 1940 Act.
It is the policy of the Fund to distribute to its shareholders
substantially all of its taxable income, thus gaining relief from
Federal income taxes under provisions of current tax regulations
applicable to investment companies of this type. Accordingly, no
provision for Federal income taxes has been made.
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 reporting
period. Actual results could differ from those estimates.
(continued)
<PAGE> 35
OHIO NATIONAL FUND, INC. DECEMBER 31, 1996
NOTES TO FINANCIAL STATEMENTS
The gross unrealized appreciation and depreciation on investments in
each portfolio as of December 31, 1996 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO
----------------------------------------------------------------------------------------------------------
INTER- CAPITAL SMALL GLOBAL AGGRESS.
EQUITY BOND OMNI NATIONAL APPREC. CAP CONTR. GROWTH
------------ --------- ------------ ------------ ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross unrealized:
Appreciation.. $ 84,862,855 $ 504,399 $ 36,938,067 $ 18,395,098 $ 4,059,993 $ 7,812,800 $ 926,937 $ 1,137,106
Depreciation.. (5,368,998) (165,690) (2,958,464) (7,654,794) (580,448) (1,098,061) (482,835) (591,087)
Net unrealized
Appreciation.. $ 79,493,857 $ 338,709 $ 33,979,603 $ 10,740,304 $ 3,479,545 $ 6,714,739 $ 444,102 $ 546,019
</TABLE>
(2) INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
securities) for the year ended December 31,1996 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO
----------------------------------------------------------------------------------------------------------
INTER- CAPITAL SMALL GLOBAL AGGRESS.
EQUITY BOND OMNI NATIONAL APPREC. CAP CONTR. GROWTH
------------ --------- ------------ ------------ ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Stocks & Bonds:
Purchases ... $40,170,942 $2,744,925 $24,425,154 $48,479,648 $39,244,357 $46,994,970 $4,970,439 $142,060,566
Sales ....... $18,647,850 $ 261,349 $11,310,895 $14,608,686 $ 8,449,211 $15,407,487 $1,089,054 $146,254,401
U.S. Government
Obligations:
Purchases ... -- $ 474,406 -- -- $ 1,501,016 -- -- $ 5,432,026
Sales ....... -- $ 300,000 $ 1,500,000 -- -- -- -- $ 5,794,225
</TABLE>
(3) INVESTMENT ADVISORY AGREEMENT, SUB-ADVISORY AGREEMENTS AND TRANSACTIONS
WITH AFFILIATED PERSONS
The Fund has an investment advisory agreement with ONI, a wholly owned
subsidiary of Ohio National Life Insurance Company (ONLIC), under the
terms of which ONI provides portfolio management and investment advice
to the Fund and administers its other affairs, subject to the
supervision of the Fund's Board of Directors. Prior to May 1, 1996 O.N.
Investment Management Company served as the Fund's investment advisor.
As compensation for its services to the Equity, Bond and Omni
Portfolios, ONI is paid fees at an annual rate of 0.60% of the first
$100 million of each of those Portfolios' net assets, 0.50% of the next
$150 million, 0.45% of the next $250 million, 0.40% of the next $500
million, 0.30% of the next $1 billion and 0.25% of net assets over $2
billion. For the Money Market Portfolio, ONI is paid a fee at an annual
rate of 0.30% of the first $100 million, 0.25% of the next $150
million, 0.23% of the next $250 million, 0.20% of the next $500 million
and 0.15% of the net assets over $1 billion. However, as to the Money
Market Portfolio, ONI is presently waiving any of its fees in excess of
0.25%. The amount waived in 1996 was $9,697. For the International and
Global Contrarian Portfolios, ONI is paid fees at an annual rate of
0.90% of each of those Portfolio's average daily net asset value. ONI
is paid fees at an annual rate of 0.80% of the average daily net assets
value of each of the Capital Appreciation, Small Cap and Aggressive
Growth Portfolios.
ONI pays Societe Generale Asset Management Corporation (SGAM) fees at
an annual rate of 0.75% of the International and Global Contrarian
Portfolios' average daily net asset value for directing the investment
and reinvestment of those Portfolios' assets pursuant to sub-advisory
agreements between ONI and SGAM dated May 1, 1996. Under sub-advisory
agreements dated May 1, 1996: (1) ONI pays T. Rowe Price Associates,
Inc. (TRPA) a fee at an annual rate of 0.70% of the first $5 million,
and 0.50% of average daily net asset value in excess of $5 million for
directing the investment and reinvestment of the Capital Appreciation
Portfolio's assets, and (2) ONI pays Founders Asset Management, Inc.
(FAM) a fee at an annual rate of 0.65% of the first $75 million, 0.60%
of the next $75 million, and 0.55% of average daily net asset value in
excess of $150 million for directing the investment and reinvestment of
the Small Cap Portfolio's assets, and (3) ONI pays Strong Capital
Management, Inc. (SCM) a fee at an annual rate of 0.70% of the first
$50 million and 0.50% of average daily net asset value in excess of $50
million for directing the investment and reinvestment of the Aggressive
Growth Portfolio's assets.
Each director who is not an officer of the Fund or an employee of ONI
or its corporate affiliates is paid a quarterly retainer fee of $2,000
plus $400 for each meeting attended.
(continued)
<PAGE> 36
OHIO NATIONAL FUND, INC. December 31, 1996
Notes to Financial Statements (Continued)
The Fund's custodian, transfer agent and dividend paying agent was The
Provident Bank, One East Fourth Street, Cincinnati, Ohio. The Provident
Bank was also the custodian for those portfolios other than the
International and Global Contrarian Portfolios. Effective January 1,
1997 American Data Services, Inc., 24 West Carver Street, Huntington,
New York became the new transfer agent and dividend paying agent for
the Fund. Also effective January 1, 1997 Star Bank, 425 Walnut Street,
Cincinnati, Ohio, became the new custodian for those portfolios other
than the International and Global Contrarian Portfolios. The custodian
for the International and Global Contrarian Portfolios is Investors
Fiduciary Trust Company, 127 West Tenth Street, Kansas City, Missouri.
For International and Global Contrarian Portfolio assets held outside
the United States, Star Bank and Investors Fiduciary Trust Company
enters into subcustodial agreements, subject to approval by the Board
of Directors.
(4) DISTRIBUTIONS TO SHAREHOLDERS
On January 2, 1997, the following dividends were paid from net
investment income and net realized gains on investments to shareholders
of record on December 31, 1996:
NET INVESTMENT INCOME
<TABLE>
<CAPTION>
CAPITAL GLOBAL AGGRESS.
EQUITY BOND OMNI APPRECIATION INTERNATIONAL CONTRARIAN GROWTH
- ---------------- ---------------- ------------------ ---------------- ---------------- ---------------- ----------------
PER PER PER PER PER PER PER
SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE
- ---------------- ---------------- ------------------ ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.13 $903,508 .17 $338,373 .14 $1,014,424 .10 $295,609 .10 $882,310 .10 $92,076 .14 $172,523
</TABLE>
NET REALIZED GAINS ON INVESTMENTS
<TABLE>
<CAPTION>
CAPITAL GLOBAL
EQUITY OMNI APPRECIATION INTERNATIONAL CONTRARIAN
----------------- ------------------ ----------------- ----------------- ----------------
PER PER PER PER PER
SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE SHARE AGGREGATE
----------------- ------------------ ----------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.29 $2,116,393 .19 $1,460,737 .19 $553,830 .47 $4,130,538 .21 $203,560
</TABLE>
On January 30, 1997 an additional net realized gain on investments of
$307,373 (.09 per share) was paid to the shareholders of record on
January 29, 1997 in the Capital Appreciation Portfolio. For Federal
income tax purposes, the Bond, Small Cap and Aggressive Growth
Portfolios had capital loss carryovers of $82,701, $229,009 and
$1,425,782 respectively, at December 31, 1996. If not offset by capital
gains, $82,701 and $47,306 will expire in 2003 in the Bond and
Aggressive Growth Portfolios respectively and $229,009 and $1,378,476
will expire in 2004 in the Small Cap and Aggressive Growth Portfolio
respectively. The Board of Directors does not intend to authorize a
distribution of any net realized gain for a portfolio until the capital
loss carryover has been offset or expires.
(5) CAPITAL SHARES TRANSACTIONS
Capital share transactions for the years ended December 31, 1996 and
1995 were as follows:
<TABLE>
<CAPTION>
Equity Money Market Bond Omni
---------------------- ---------------------- -------------------- ----------------------
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital shares
issued on sales .......... 1,251,722 1,027,904 2,854,453 1,416,527 654,067 386,744 1,421,502 934,361
Capital shares issued
on reinvested dividends .. 296,586 175,132 97,983 68,371 118,018 78,755 312,746 167,487
Capital shares redeemed ...... 488,195 371,799 1,972,882 1,219,129 469,144 168,371 461,070 631,665
</TABLE>
(continued)
<PAGE> 37
OHIO NATIONAL FUND, INC. DECEMBER 31,1996
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
Global
International Capital Appreciation Small Cap Contrarian(a)
---------------------- --------------------- ---------------------- -------------------
1996 1995 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital shares
issued on sales .......... 2,498,593 1,949,778 1,370,341 969,718 1,175,931 778,636 694,759 421,953
Capital shares issued
on reinvested dividends .. 437,139 186,973 137,455 39,565 35,538 2,166 22,442 2,275
Capital shares redeemed ...... 372,436 564,813 158,593 56,759 89,525 40,666 158,086 15,010
</TABLE>
<TABLE>
<CAPTION>
Aggressive
Growth(a)
1996 1995
---- ----
--------------------
<S> <C> <C>
Capital shares
issued on sales .......... 849,211 337,342
Capital shares issued
on reinvested dividends .. 124,213 12,046
Capital shares redeemed ...... 114,532 11,183
</TABLE>
(a)Commenced operations March 31, 1995
The Fund is authorized to issue 250,000,000 of its capital shares. 20,000,000
shares have been allocated to the Equity, Omni and International Portfolios,
and 10,000,000 shares are allocated to each of the other portfolios. The
remaining 60,000,000 shares are unallocated at this time.
(6) COMMITMENTS
As of December 31, 1996 the International and Global Contrarian
Portfolios had entered into forward currency contracts, as set forth
below summarized by currency:
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
SETTLEMENT CURRENCY TO BE U.S. $ VALUE CURRENCY TO BE U.S. $ VALUE UNREALIZED
DATES THROUGH DELIVERED AT 12/31/96 RECEIVED AT 12/31/96 GAIN (LOSS)
- ------------- -------------------------------- ------------- ------------------------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
05/07/97 6,798,000 Swiss Franc 5,130,565 5,261,954 U.S. Dollar 5,261,954 $ 131,389 --
05/07/97 159,885 U.S. Dollar 159,885 211,000 Swiss Franc 159,245 -- $ (640)
01/03/97 9,312,000 Deutsche Mark 6,046,753 6,268,411 U.S. Dollar 6,268,411 221,658 --
01/03/97 5,979,811 U.S. Dollar 5,979,811 9,312,000 Deutsche Mark 6,046,753 66,942 --
05/14/97 13,711,000 Deutsche Mark 8,979,044 8,945,073 U.S. Dollar 8,945,073 -- (33,971)
01/10/97 54,098,000 French Franc 10,427,927 10,655,604 U.S. Dollar 10,655,604 227,677 --
05/21/97 30,244,000 French Franc 5,873,759 5,872,931 U.S. Dollar 5,872,931 -- (828)
01/17/97 1,125,000,000 Japanese Yen 9,704,969 10,579,224 U.S. Dollar 10,579,224 874,255 --
01/17/97 267,189 U.S. Dollar 267,189 30,100,000 Japanese Yen 259,662 -- ( 7,527)
05/28/97 461,050,000 Japanese Yen 4,051,050 4,215,631 U.S. Dollar 4,215,631 164,581 --
03/17/97 350,000 New Zealand$ 248,220 243,495 U.S. Dollar 243,495 -- (4,725)
------------ ---------- ---------- --------
56,869,172 58,507,983 $1,686,502 $(47,691)
============ ========== ========== ========
</TABLE>
(continued)
<PAGE> 38
OHIO NATIONAL FUND, INC. DECEMBER 31,1996
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
GLOBAL CONTRARIAN PORTFOLIO
SETTLEMENT CURRENCY TO BE U.S. $ VALUE CURRENCY TO BE U.S. $ VALUE UNREALIZED
DATES THROUGH DELIVERED AT 12/31/96 RECEIVED AT 12/31/96 GAIN (LOSS)
- ------------- ------------------------- ------------ ------------------------ ----------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
05/07/97 34,000 Swiss Franc 25,660 25,814 U.S. Dollar 25,814 $ 154 --
01/03/97 183,000 Deutsche Mark 118,831 121,624 U.S. Dollar 121,624 2,793 --
01/03/97 117,511 U.S. Dollar 117,511 183,000 Deutsche Mark 118,831 1,320 --
05/14/97 396,000 Deutsche Mark 259,332 259,827 U.S. Dollar 259,827 495 --
01/10/97 2,112,000 French Franc 409,037 414,863 U.S. Dollar 414,863 5,826 --
01/10/97 43,830 U.S. Dollar 43,830 226,000 French Franc 43,564 -- $(266)
01/17/97 34,400,000 Japanese Yen 296,756 323,506 U.S. Dollar 323,506 26,750 --
05/28/97 23,600,000 Japanese Yen 207,363 215,819 U.S. Dollar 215,819 8,456 --
05/07/97 125,000 Dutch Guilder 72,925 72,506 U.S. Dollar 72,506 (419)
--------- --------- ------- -----
1,551,245 1,596,354 $45,794 $(685)
========= ========= ======= =====
</TABLE>
<PAGE> 39
OHIO NATIONAL FUND, INC.
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Ohio National Fund, Inc.:
We have audited the accompanying statements of assets and liabilities and the
schedules of investments of Ohio National Fund, Inc. (comprising, respectively,
the Equity, Money Market, Bond, Omni, International, Capital Appreciation, Small
Cap, Global Contrarian and Aggressive Growth Portfolios) as of December 31,
1996, and the related statements of operations, statements of changes in net
assets and the financial highlights for each of the periods indicated herein.
These financial statements and financial highlights are the responsibility of
the fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1996, by correspondence with
the custodian and brokers, and where replies are not received, we carried out
other appropriate auditing procedures. 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 each
of the portfolios comprising Ohio National Fund, Inc. as of December 31, 1996,
and the results of their operations, the changes in their net assets and their
financial highlights for each of the periods indicated herein, in conformity
with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Cincinnati, Ohio
January 28, 1997
<PAGE> 40
OHIO NATIONAL FUND, INC. YEAR ENDED DECEMBER 31, 1996
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PORTFOLIO
------------------------------------------------------------------------------------------------
EQUITY MONEY MARKET
--------------------------------------------- -----------------------------------------------
YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31,
1996 1995 1994 1993 1992 1996 1995 1994 1993 1992
--------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per share data
(for a share outstanding
throughout each period):
Net asset value,
beginning of period ....... $28.58 $23.20 $23.90 $21.63 $20.61 $10.00 $10.00 $10.00 $10.00 $10.00
Income from investment
operations:
Net investment income ..... 0.47 0.50 0.45 0.41 0.50 0.50 0.54 0.39 0.27 0.31
Net realized & unrealized
gain (loss) on investments
and foreign currency
transactions ............ 4.58 5.65 (0.39) 2.57 1.02 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------- ------- ------ ------ ------ ------ ------
Total from investment
operations .......... 5.05 6.15 0.06 2.98 1.52 0.50 0.54 0.39 0.27 0.31
------ ------ ------ ------- ------- ------ ------ ------ ------ ------
Less distributions:
Dividends declared ........ (0.46) (0.39) (0.44) (0.42) (0.50) (0.50) (0.54) (0.39) (0.27) (0.31)
Distributions from
realized capital gains .. (0.87) (0.38) (0.32) (0.29) 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------- ------- ------ ------ ------ ------ ------
Total distributions ... (1.33) (0.77) (0.76) (0.71) (0.50) (0.50) (0.54) (0.39) (0.27) (0.31)
------ ------ ------ ------- ------- ------ ------ ------ ------ ------
Net asset value,
end of period ............. $32.30 $28.58 $23.20 $23.90 $21.63 $10.00 $10.00 $10.00 $10.00 $10.00
====== ====== ====== ======= ======= ====== ====== ====== ====== ======
Total return ................. 18.35% 27.20% 0.25% 14.09% 7.55% 5.17% 5.62% 4.00% 2.71% 3.12%
====== ====== ====== ======= ======= ====== ====== ====== ====== ======
Ratio (to average net assets)/
supplemental data:
Expenses ................ 0.73% 0.73% 0.62% 0.63% 0.65% 0.44%(b) 0.44%(b) 0.39%(b) 0.53%(b) 0.66%
Net investment income ... 1.60% 1.90% 1.90% 1.91% 2.44% 4.96%(b) 5.39%(b) 3.69%(b) 2.71%(b) 3.16%
Portfolio turnover ........ 11% 14% 8% 18% 12% 0 0 0 0 0
Average commission rate (e) 0.069 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Net assets at end
of period (millions) .... $232.8 $175.7 $123.3 $109.9 $87.4 $25.5 $15.7 $13.1 $19.1 $20.6
<CAPTION>
PORTFOLIO
--------------------------------------------------
BOND
--------------------------------------------------
YEARS ENDED DECEMBER 31,
1996 1995 1994 1993 1992
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data
(for a share outstanding
throughout each period):
Net asset value,
beginning of period ....... $10.93 $ 9.70 $10.87 $10.45 $10.37
Income from investment
operations:
Net investment income ..... 0.69 0.70 0.67 0.69 0.67
Net realized & unrealized
gain (loss) on investment
and foreign currency
transactions ............ (0.32) 1.08 (1.07) 0.41 0.10
------ ------ ------ ------ ------
Total from investment
operations .......... 0.37 1.78 (0.40) 1.10 0.77
------ ------ ------ ------ ------
Less distributions:
Dividends declared ........ (0.68) (0.55) (0.69) (0.68) (0.69)
Distributions from
realized capital gains .. 0.00 0.00 (0.08) 0.00 0.00
------ ------ ------ ------ ------
Total distributions ... (0.68) (0.55) (0.77) (0.68) (0.69)
------ ------ ------ ------ ------
Net asset value,
end of period ............. $10.62 $10.93 $9.70 $10.87 $10.45
====== ====== ====== ====== ======
Total return ................. 3.71% 18.90% (3.84%) (10.69%) 7.55%
====== ====== ====== ====== ======
Ratio (to average net assets)/
supplemental data:
Expenses ................ 0.79% 0.75% 0.63% 0.62% 0.65%
Net investment income ... 6.54% 6.76% 6.71% 6.33% 6.73%
Portfolio turnover ........ 3% 4% 5% 13% 20%
Average commission rate (e) N/A N/A N/A N/A N/A
Net assets at end
of period (millions) .... $20.8 $ 18.1 $13.1 $12.0 $8.9
</TABLE>
(b) On and after June 17,1993, the advisor has waived part of the
management fee with respect to the Money Market Portfolio, to the
extent such fee exceeds an annual rate of .25% of the Money Market
Portfolio's daily net asset value. Had the fee not been waived, the
annualized ratio of net expenses for the years ended December 31, 1996,
1995, 1994 and 1993 would have been .49%, .55%, .59%, and .63%
respectively. The annualized ratio of net investment income to average
net assets would have been 4.93%, 5.27%, 3.51%, and 2.60% respectively.
(e) Represents the total dollar amount of commissions paid on equity
security transactions divided by the total number of shares purchased
and sold by the respective portfolio for which commissions were
charged.
The accompanying notes are an integral part of these financial statements.
<PAGE> 41
OHIO NATIONAL FUND, INC. YEAR ENDED DECEMBER 31, 1996
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PORTFOLIO
-------------------------------------------
OMNI
-------------------------------------------
YEARS ENDED DECEMBER 31,
1996 1995 1994 1993 1992
-------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data
(for a share outstanding throughout each period):
Net asset value, beginning of period ................ $17.60 $14.76 $15.38 $14.14 $13.63
Income from investment operations:
Net investment income (loss) ..................... 0.53 0.58 0.55 0.58 0.63
Net realized & unrealized gain (loss) on investments
and foreign currency transactions .............. 2.10 2.72 (0.63) 1.21 0.51
------ ------ ------ ------ ------
Total from investment operations ............. 2.63 3.30 (0.08) 1.79 1.14
------ ------ ------ ------ ------
Less distributions:
Dividends declared ............................... (0.52) (0.46) (0.54) (0.55) (0.63)
Distributions from realized capital gains ........ (0.31) 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------
Total distributions .......................... (0.83) (0.46) (0.54) (0.55) (0.63)
------ ------ ------ ------ ------
Net asset value, end of period ................... $19.40 $17.60 $14.76 $15.38 $14.14
====== ====== ====== ====== ======
Total return ........................................ 15.54% 22.75% 0.53% 12.85% 8.61%
====== ====== ====== ====== ======
Ratio (to average net assets)/supplemental data:
Expenses ....................................... 0.76% 0.75% 0.62% 0.62% 0.65%
Net investment income .......................... 2.89% 3.56% 3.67% 3.74% 4.66%
Portfolio turnover ............................... 12% 10% 7% 17% 16%
Average commission rate (e) ...................... 0.072 N/A N/A N/A N/A
Net assets at end of period (millions) ........... $145.5 $109.6 $85.0 $74.2 $46.4
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO
--------------------------------------------------------------------------
INTERNATIONAL CAPITAL APPRECIATION
--------------------------------------- -----------------------------
4-30-93 YEARS ENDED 5-1-94
YEARS ENDED DECEMBER 31, TO DECEMBER 31, TO
1996 1995 1994 12-31-93 1996 1995 12-31-94
------------------------------------ -----------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per share data
(for a share outstanding throughout each period):
Net asset value, beginning of period ................ $14.38 $13.30 $12.48 $10.00 $11.99 $10.25 $10.00
Income from investment operations:
Net investment income (loss) ..................... 0.25 0.31 0.16 0.02 0.48 0.39 0.22
Net realized & unrealized gain (loss) on investments
and foreign currency transactions .............. 1.76 1.28 0.84 2.47 1.31 1.85 0.23
------- ------- ------ ------ ------- ------- -------
Total from investment operations ............. 2.01 1.59 1.00 2.49 1.79 2.24 0.45
------- ------- ------ ------ ------- ------- -------
Less distributions:
Dividends declared ............................... (0.63) (0.28) (0.12) (0.01) (0.44) (0.29) (0.20)
Distributions from realized capital gains ........ (0.27) (0.23) (0.06) 0.00 (0.41) (0.21) 0.00
------- ------- ------ ------ ------- ------- -------
Total distributions .......................... (0.90) (0.51) (0.18) (0.01) (0.85) (0.50) (0.20)
------- ------- ------ ------ ------- ------- -------
Net asset value, end of period ................... $15.49 $14.38 $13.30 $12.48 $12.93 $11.99 $10.25
======= ======= ====== ====== ======= ======= =======
Total return ........................................ 14.48% 12.10% 8.07% 24.96%(c) 15.75% 22.62% 4.53%(c)
======= ======= ====== ====== ======= ======= =======
Ratio (to average net assets)/supplemental data:
Expenses ....................................... 1.15% 1.12% 1.05% 1.13%(a,d) 0.97% 0.96% 0.96%(a,d)
Net investment income .......................... 1.64% 2.29% 1.23% 0.41%(a,d) 3.90% 3.47% 3.24%(a,d)
Portfolio turnover ............................... 14% 7% 16% 8% 37% 32% 20%
Average commission rate (e) ...................... 0.031 N/A N/A N/A 0.053 N/A N/A
Net assets at end of period (millions) ........... $137.3 $90.6 $62.9 $17.5 $38.3 $19.3 $6.8
</TABLE>
(a) Annualized
(c) Calculated on an aggregate basis (not annualized).
(d) The advisor has reimbursed certain operating expenses of the Capital
Appreciation Portfolio for the period ended December 31, 1994 and the
International Portfolio for the period ended December 31,1993. Had the
advisor not reimbursed such expenses, the annualized ratio of expenses
to average net assets would have been 1.05% and 1.39% respectively. The
annualized ratio of net investment income to average net assets would
have been 3.18% and .15% respectively.
(e) Represents the total dollar amount of commissions paid on equity
security transactions divided by the total number of shares purchased
and sold by the respective portfolio for which commissions were
charged.
The accompanying notes are an integral part of these financial statements.
<PAGE> 42
OHIO NATIONAL FUND, INC. YEAR ENDED DECEMBER 31, 1996
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PORTFOLIO
------------------------------------------------------------------------
GLOBAL AGGRESSIVE
SMALL CAP CONTRARIAN GROWTH
--------------------------- ----------------- ------------------
YEARS ENDED 5-1-94 YEAR 4-1-95 YEAR 4-1-95
DECEMBER 31, TO ENDED TO ENDED TO
1996 1995 12-31-94 12-31-96 12-31-95 12-31-96 12-31-95
--------------------------- ----------------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per share data
(for a share outstanding throughout each period):
Net asset value, beginning of period................. $15.85 $11.99 $10.00 $10.80 $10.00 $11.84 $10.00
Income from investment operations:
Net investment income (loss)...................... (0.08) (0.02) 0.18 0.28 0.13 1.64 1.56
Net realized & unrealized gain (loss) on
investments and foreign currency transactions... 2.80 3.95 1.94 1.00 0.75 (1.59) 1.08
------ ------ ------ ------ ------ ------- -------
Total from investment operations.............. 2.72 3.93 2.12 1.28 0.88 0.05 2.64
------ ------ ------ ------ ------ ------- -------
Less distributions:
Dividends declared................................ 0.00 (0.07) (0.13) (0.33) (0.08) (1.86) (0.80)
Distributions from realized capital gains......... (0.54) 0.00 0.00 (0.09) 0.00 0.00 0.00
------ ------ ------ ------ ------ ------- -------
Total distributions........................... (0.54) (0.07) (0.13) (0.42) (0.08) (1.86) (0.80)
------ ------ ------ ------ ------ ------- -------
Net asset value, end of period....................... $18.03 $15.85 $11.99 $11.66 $10.80 $10.03 $11.84
====== ====== ====== ====== ====== ======= =======
Total return ........................................ 17.71% 33.01% 21.26%(c) 12.09% 8.89%(c) 0.76% 26.95%(c)
====== ====== ====== ====== ====== ======= =======
Ratio (to average net assets)/supplemental data:
Expenses........................................ 0.96% 0.96% 0.91%(a,d) 1.29% 1.56%(a,d) 1.01% 1.02%(a)
Net investment income........................... (0.48%) (0.11%) 3.27%(a,d) 2.44% 1.64%(a,d) 15.81% 18.18%(a)
Portfolio turnover................................ 70% 75% 22% 18% 6%(a) 1987% 1488%(a)
Average commission rate (e)....................... 0.060 N/A N/A 0.028 N/A 0.034 N/A
Net assets at end of period (millions)............ $38.5 $16.0 $3.3 $11.3 $4.4 $12.0 $4.0
</TABLE>
(a) Annualized
(c) Calculated on an aggregate basis (not annualized).
(d) The advisor has reimbursed certain operating expenses of the Global
Contrarian Portfolio for the period ended December 31,1995 the and
Small Cap Portfolio for the period ended December 31, 1994. Had the
advisor not reimbursed such expenses, the annualized ratio of expenses
to average net assets would have been 1.90% and .95% respectively. The
annualized ratio of net investment income to average net assets would
have been 1.32% and 3.24% respectively.
(e) Represents the total dollar amount of commissions paid on equity
security transactions divided by the total number of shares purchased
and sold by the respective portfolio for which commissions were
charged.
The accompanying notes are an integral part of these financial statements.
<PAGE> 43
OHIO NATIONAL VARIABLE ACCOUNT A
INDEPENDENT AUDITORS' REPORT
The Board of Directors
The Ohio National Life Insurance Company
The Contract Owners
Ohio National Variable Account A
We have audited the accompanying statements of assets and contract owners'
equity of Ohio National Variable Account A as of December 31, 1996, and the
related statements of operations and changes in contract owners' equity and
schedules of changes in unit values for each of the periods indicated herein.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1996, by examination of the
underlying mutual fund. 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 referred to above present fairly, in
all material respects, the financial position of Ohio National Variable Account
A at December 31, 1996, and the results of its operations, changes in contract
owners' equity and changes in unit values for each of the periods indicated
herein, in conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Cincinnati, Ohio
January 28, 1997
================================================================================
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1996
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL
EQUITY MARKET BOND OMNI NATIONAL APPREC.
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets - Investments
at market value
(note 2) $89,459,131 $ 5,794,782 $ 5,182,509 $58,137,874 $47,781,648 $10,651,100
=========== =========== =========== =========== =========== ===========
Contract owners'
equity:
Contracts in
accumulation
period (note 3) $89,037,185 $ 5,678,335 $ 5,173,030 $58,026,674 $47,781,648 $10,651,100
Annuity reserves
for contracts in
payment period 421,946 116,447 9,479 111,200 0 0
----------- ----------- ----------- ----------- ----------- -----------
Total contract
owners' equity $89,459,131 $ 5,794,782 $ 5,182,509 $58,137,874 $47,781,648 $10,651,100
=========== =========== =========== =========== =========== ===========
<CAPTION>
SMALL GLOBAL AGGRESS.
CAP CONTR. GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
Assets - Investments
at market value
(note 2) $13,015,805 $ 2,363,815 $ 2,620,454
=========== =========== ===========
Contract owners'
equity:
Contracts in
accumulation
period (note 3) $13,015,805 $ 2,363,815 $ 2,620,454
Annuity reserves
for contracts in
payment period 0 0 0
----------- ----------- -----------
Total contract
owners' equity $13,015,805 $ 2,363,815 $ 2,620,454
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 44
OHIO NATIONAL VARIABLE ACCOUNT A FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
EQUITY MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
1996 1995 1996 1995 1996 1995
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends .............. $ 3,309,014 $ 1,723,423 $ 264,732 $ 189,597 $ 318,092 $ 211,780
Risk and administrative
expense (note 4) ........... (847,614) (651,801) (51,812) (34,079) (53,743) (44,400)
------------ ------------ ------------ ------------ ------------ ------------
Net investment activity ... 2,461,400 1,071,622 212,920 155,518 264,349 167,380
------------ ------------ ------------ ------------ ------------ ------------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) ....... 1,192,086 904,829 (4,499) 0 9,435 6,646
Unrealized gain (loss) ..... 8,919,868 11,625,942 0 0 (134,060) 482,005
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on
investments ............. 10,111,954 12,530,771 (4,499) 0 (124,625) 488,651
------------ ------------ ------------ ------------ ------------ ------------
Net increase in contract
owners' equity from
operations ............. 12,573,354 13,602,393 208,421 155,518 139,724 656,031
------------ ------------ ------------ ------------ ------------ ------------
Equity transactions:
Sales:
Contract purchase payments.. 10,413,119 8,103,486 3,610,654 2,272,210 926,817 959,158
Transfers from fixed and
other subaccounts ......... 2,817,812 3,069,834 1,135,004 1,882,448 101,994 303,129
------------ ------------ ------------ ------------ ------------ ------------
13,230,931 11,173,320 4,745,658 4,154,658 1,028,811 1,262,287
------------ ------------ ------------ ------------ ------------ ------------
Redemptions:
Withdrawals and surrenders.. 3,340,783 2,826,751 582,380 305,731 364,781 271,658
Annuity and death benefit
payments .................. 721,495 599,141 64,028 16,451 10,774 25,808
Transfers to fixed and
other subaccounts ......... 1,718,941 2,340,950 3,419,115 2,691,865 367,550 193,959
------------ ------------ ------------ ------------ ------------ ------------
5,781,219 5,766,842 4,065,523 3,014,047 743,105 491,425
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ... 7,449,712 5,406,478 680,135 1,140,611 285,706 770,862
------------ ------------ ------------ ------------ ------------ ------------
Net change in contract
owners' equity ......... 20,023,066 19,008,871 888,556 1,296,129 425,430 1,426,893
Contract owners' equity:
Beginning of period ......... 69,436,065 50,427,194 4,906,226 3,610,097 4,757,079 3,330,186
------------ ------------ ------------ ------------ ------------ ------------
End of period ............... $ 89,459,131 $ 69,436,065 $ 5,794,782 $ 4,906,226 $ 5,182,509 $ 4,757,079
============ ============ ============ ============ ============ ============
<CAPTION>
---------------------------------------------------------------
OMNI INTERNATIONAL
SUBACCOUNT SUBACCOUNT
1996 1995 1996 1995
----------------------------- -----------------------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends .............. $ 2,223,475 $ 1,108,038 $ 2,272,474 $ 991,686
Risk and administrative
expense (note 4) ........... (551,635) (425,306) (434,384) (312,946)
------------ ------------ ------------ ------------
Net investment activity ... 1,671,840 682,732 1,838,090 678,740
------------ ------------ ------------ ------------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) ....... 577,644 435,547 224,983 137,917
Unrealized gain (loss) ..... 4,606,392 6,398,204 2,790,398 2,266,142
------------ ------------ ------------ ------------
Net gain (loss) on
investments ............. 5,184,036 6,833,751 3,015,381 2,404,059
------------ ------------ ------------ ------------
Net increase in contract
owners' equity from
operations ............. 6,855,876 7,516,483 4,853,471 3,082,799
------------ ------------ ------------ ------------
Equity transactions:
Sales:
Contract purchase payments.. 9,082,596 5,062,792 9,913,128 7,753,900
Transfers from fixed and
other subaccounts ......... 1,632,769 793,343 2,659,338 1,305,223
------------ ------------ ------------ ------------
10,715,365 5,856,135 12,572,466 9,059,123
------------ ------------ ------------ ------------
Redemptions:
Withdrawals and surrenders.. 2,246,180 2,021,783 1,338,114 1,134,559
Annuity and death benefit
payments .................. 554,361 116,467 210,138 54,693
Transfers to fixed and
other subaccounts ......... 992,890 2,043,636 1,226,211 3,141,268
------------ ------------ ------------ ------------
3,793,431 4,181,886 2,774,463 4,330,520
------------ ------------ ------------ ------------
Net equity transactions ... 6,921,934 1,674,249 9,798,003 4,728,603
------------ ------------ ------------ ------------
Net change in contract
owners' equity ......... 13,777,810 9,190,732 14,651,474 7,811,402
Contract owners' equity:
Beginning of period ......... 44,360,064 35,169,332 33,130,174 25,318,772
------------ ------------ ------------ ------------
End of period ............... $ 58,137,874 $ 44,360,064 $ 47,781,648 $ 33,130,174
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 45
OHIO NATIONAL VARIABLE ACCOUNT A FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
CAPITAL APPRECIATION SMALL CAP GLOBAL CONTRARIAN
SUBACCOUNT SUBACCOUNT SUBACCOUNT
1996 1995 1996 1995 1996 1995 (a)
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends .............. $ 383,454 $ 55,307 $ 176,709 $ 8,230 $ 44,575 $ 1,259
Risk and administrative
expense (note 4) ........... (72,491) (19,404) (87,665) (23,562) (14,459) (2,801)
------------ ------------ ------------ ------------ ------------ ------------
Net investment activity ... 310,963 35,903 89,044 (15,332) 30,116 (1,542)
------------ ------------ ------------ ------------ ------------ ------------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) ....... 19,693 16,743 70,688 32,092 2,571 (587)
Unrealized gain (loss) ..... 711,617 291,929 1,202,984 609,033 89,145 13,613
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on
investments ............. 731,310 308,672 1,273,672 641,125 91,716 13,026
------------ ------------ ------------ ------------ ------------ ------------
Net increase in contract
owners' equity from
operations ............. 1,042,273 344,575 1,362,716 625,793 121,832 11,484
------------ ------------ ------------ ------------ ------------ ------------
Equity transactions:
Sales:
Contract purchase payments.. 4,558,526 2,638,520 5,157,859 2,704,917 1,572,884 508,497
Transfers from fixed and
other subaccounts ......... 1,340,463 806,607 2,096,958 1,195,795 199,996 38,361
------------ ------------ ------------ ------------ ------------ ------------
5,898,989 3,445,127 7,254,817 3,900,712 1,772,880 546,858
------------ ------------ ------------ ------------ ------------ ------------
Redemptions:
Withdrawals and surrenders.. 187,862 59,207 260,751 81,418 21,116 1,715
Annuity and death benefit
payments .................. 47,472 0 66,443 16,255 8,926 0
Transfers to fixed and
other subaccounts ......... 262,392 70,828 498,005 121,816 49,840 7,642
------------ ------------ ------------ ------------ ------------ ------------
497,726 130,035 825,199 219,489 79,882 9,357
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ... 5,401,263 3,315,092 6,429,618 3,681,223 1,692,998 537,501
------------ ------------ ------------ ------------ ------------ ------------
Net change in contract
owners' equity ......... 6,443,536 3,659,667 7,792,334 4,307,016 1,814,830 548,985
Contract owners' equity:
Beginning of period ......... 4,207,564 547,897 5,223,471 916,455 548,985 0
------------ ------------ ------------ ------------ ------------ ------------
End of period ............... $ 10,651,100 $ 4,207,564 $ 13,015,805 $ 5,223,471 $ 2,363,815 $ 548,985
============ ============ ============ ============ ============ ============
<CAPTION>
-----------------------------
AGGRESSIVE GROWTH
SUBACCOUNT
1996 1995 (a)
-----------------------------
<S> <C> <C>
Investment activity:
Reinvested capital gains
and dividends .............. $ 244,914 $ 12,988
Risk and administrative
expense (note 4) ........... (15,097) (1,499)
------------ ------------
Net investment activity ... 229,817 11,489
------------ ------------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) ....... (10,234) 4,085
Unrealized gain (loss) ..... (166,627) 23,386
------------ ------------
Net gain (loss) on
investments ............. (176,861) 27,471
------------ ------------
Net increase in contract
owners' equity from
operations ............. 52,956 38,960
------------ ------------
Equity transactions:
Sales:
Contract purchase payments.. 1,876,917 544,084
Transfers from fixed and
other subaccounts ......... 228,778 50,264
------------ ------------
2,105,695 594,348
------------ ------------
Redemptions:
Withdrawals and surrenders.. 42,393 119
Annuity and death benefit
payments .................. 5,231 0
Transfers to fixed and
other subaccounts ......... 115,826 7,936
------------ ------------
163,450 8,055
------------ ------------
Net equity transactions ... 1,942,245 586,293
------------ ------------
Net change in contract
owners' equity ......... 1,995,201 625,253
Contract owners' equity:
Beginning of period ......... 625,253 0
------------ ------------
End of period ............... $ 2,620,454 $ 625,253
============ ============
</TABLE>
(a) Period from March 31, 1995, date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
<PAGE> 46
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ohio National Variable Account A (the Account) is a separate account of The
Ohio National Life Insurance Company (ONLIC) and all obligations arising
under variable annuity contracts are general corporate obligations of
ONLIC. The account has been registered as a unit investment trust under the
Investment Company Act of 1940.
Assets of the Account are invested in shares of Ohio National Fund, Inc.
(the Fund), a diversified open-end management investment company. The
Fund's investments are subject to varying degrees of market, interest and
financial risks; the issuers' abilities to meet certain obligations may be
affected by economic developments in their respective industries.
Annuity reserves are computed for currently payable contracts according to
the Progressive Annuity Mortality Table. The assumed interest rate is 3.5
or 4.0 percent depending on the contract selected by the annuitant. Charges
to annuity reserves for adverse mortality and expense risk experience are
reimbursed to the Account by ONLIC. Such amounts are included in risk and
administrative expense.
Investments are valued at the net asset value of fund shares held at
December 31, 1996. Share transactions are recorded on the trade date.
Income and capital gain distributions are recorded on the ex-dividend date.
Net realized capital gain or loss is determined on the basis of average
cost.
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 revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
(2) INVESTMENTS
At December 31, 1996 the aggregate cost and number of shares of Ohio
National Fund, Inc. owned by the respective subaccounts were:
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL
EQUITY MARKET BOND OMNI NATIONAL APPREC.
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Cost $ 61,446,978 $ 5,794,782 $ 5,056,221 $ 44,581,453 $ 41,981,108 $ 9,648,460
Number of shares 2,769,718 579,478 487,811 2,997,107 3,084,080 823,815
<CAPTION>
SMALL GLOBAL AGGRESS.
CAP CONTR. GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
Aggregate Cost $ 11,161,638 $ 2,261,057 $ 2,763,695
Number of shares 722,017 202,746 261,210
</TABLE>
(3) CONTRACTS IN ACCUMULATION PERIOD
At December 31, 1996 the accumulation units and value per unit of the
respective subaccounts and products were:
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT
------------------ --------------
<S> <C> <C>
EQUITY SUBACCOUNT
Combination ...................... 35,244.276 $ 113.656777
Back Load ........................ 20,212.083 63.934367
Top I ............................ 183,969.465 51.168913
Top II ........................... 1,505,498.815 44.033562
Top Plus ......................... 534,027.651 15.042658
MONEY MARKET SUBACCOUNT
VIA .............................. 19,866.375 26.200345
Top I ............................ 19,326.479 19.852565
Top II ........................... 175,232.442 17.584720
Top Plus ......................... 149,846.146 11.296489
BOND SUBACCOUNT
Top I ............................ 26,416.602 27.765946
Top II ........................... 139,015.562 25.112262
Top Plus ......................... 82,916.614 11.439849
OMNI SUBACCOUNT
Top I ............................ 133,426.512 33.604216
Top II ........................... 1,384,658.452 33.527373
Top Plus ......................... 511,032.906 13.930650
</TABLE>
<PAGE> 47
OHIO NATIONAL VARIABLE ACCOUNT A DECEMBER 31, 1996
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT
------------------ --------------
<S> <C> <C>
INTERNATIONAL SUBACCOUNT
Top I ...................... 116,301.299 16.648702
Top II ..................... 2,157,622.552 16.648702
Top Plus ................... 678,397.353 14.628252
CAPITAL APPRECIATION SUBACCOUNT
Top I ...................... 11,321.420 13.018249
Top II ..................... 379,716.515 13.018249
Top Plus ................... 383,878.320 14.484990
SMALL CAP SUBACCOUNT
Top I ...................... 21,891.157 14.205207
Top II ..................... 454,044.630 14.205207
Top Plus ................... 337,460.225 18.535631
GLOBAL CONTRARIAN SUBACCOUNT
Top II ..................... 68,964.208 11.226306
Top Plus ................... 132,292.431 12.015818
AGGRESSIVE GROWTH SUBACCOUNT
Top II ..................... 107,442.443 10.463801
Top Plus ................... 118,817.600 12.592390
</TABLE>
(4) RISK AND ADMINISTRATIVE EXPENSE
ONLIC charges the Account's assets at the end of each valuation period,
equal to 0.25% on an annual basis, of the contract value for administrative
expenses, based on premiums established at the time the contracts are
issued.
Although variable annuity payments differ according to the investment
performance of the Accounts, they are not affected by mortality or expense
experience because ONLIC assumes the expense risk and the mortality risk
under the contracts. ONLIC charges the Accounts' assets for assuming those
risks, based on the contract value at a rate presently ranging from 0.65%
to 1.05% for mortality and expense risk on an annual basis.
The expense risk assumed by ONLIC is the risk that the deductions for sales
and administrative expenses provided for in the variable annuity contract
may prove insufficient to cover the cost of those terms.
The mortality risk results from a provision in the contract in which ONLIC
agrees to make annuity payments regardless of how long a particular
annuitant or other payee lives and how long all annuitants or other payees
as a class live if payment options involving life contingencies are chosen.
Those annuity payments are determined in accordance with annuity purchase
rate provisions established at the time the contracts are issued.
(5) CONTRACT CHARGES
No deduction for a sales charge is made from purchase payments. A
contingent deferred sales charge ranging from 0% to 6% may be assessed by
ONLIC when a contract is surrendered or a partial withdrawal of
accumulation value is made before the annuity payout date.
A transfer fee is charged for each transfer from one subaccount to another.
The fee is charged against the contract owner's equity in the subaccount
from which the transfer is effected.
State premium taxes presently range from 0% to 2 1/2% for these contracts.
In those jurisdictions permitting, such taxes will be deducted when annuity
payments begin. Elsewhere, they will be deducted from purchase payments.
<PAGE> 48
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
(6) FEDERAL INCOME TAXES
Operations of the Account form a part of, and are taxed with, operations of
ONLIC which is taxed as a life insurance company under the Internal Revenue
Code. Taxes are the responsibility of the contract owner upon termination
or withdrawal. No Federal income taxes are payable under present law on
dividend income or capital gains distribution from the Fund shares held in
the Account or on capital gains realized by the Account on redemption of
the Fund shares.
(7) NOTE TO SCHEDULE 1
Schedule 1 presents the components of the change in the unit values, which
are the basis for determining contract owners' equity. This schedule is
presented for each series, as applicable, in the following format:
- Beginning unit value
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to capital
gain and dividend distributions from the underlying mutual fund.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the fund.)
- Expenses
(This amount reflects the decrease in the unit value due to Risk and
Administrative Expenses discussed in note 4 to the financial
statements.)
- Ending unit value
- Percentage increase (decrease) in unit value.
<PAGE> 49
OHIO NATIONAL VARIABLE ACCOUNT A For the Years Ended December 31, 1996 and 1995
SCHEDULES OF CHANGES IN UNIT VALUES SCHEDULE 1
EQUITY SUBACCOUNT A
<TABLE>
<CAPTION>
1996 COMBINATION BACK LOAD TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C> <C>
Beginning unit value............................. 96.995665 54.616584 43.711561 37.616119 12.824740
Reinvested capital gains and dividends........... 4.383678 2.460847 1.973416 1.701030 0.584226
Realized and unrealized gain..................... 13.328814 7.507965 6.099801 5.165390 1.759811
Expenses......................................... -1.051380 -0.651029 -0.615865 -0.448977 -0.126119
Ending unit value................................ 113.656777 63.934367 51.168913 44.033562 15.042658
Percentage increase in unit value*............... 17.2% 17.1% 17.1% 17.1% 17.3%
<CAPTION>
1995 COMBINATION BACK LOAD TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C> <C>
Beginning unit value............................. 77.016062 43.409203 34.741902 29.897240 10.173015
Reinvested capital gains and dividends........... 2.510281 1.420905 1.133756 0.977991 0.339195
Realized and unrealized gain..................... 18.348416 10.333063 8.352522 7.117918 2.419560
Expenses......................................... -0.879094 -0.546587 -0.516619 -0.377030 -0.107030
Ending unit value................................ 96.995665 54.616584 43.711561 37.616119 12.824740
Percentage increase in unit value*............... 25.9% 25.8% 25.8% 25.8% 26.1%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
MONEY MARKET SUBACCOUNT A
<TABLE>
<CAPTION>
1996 VIA TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C>
Beginning unit value......................... 25.237165 19.122749 16.904534 10.837896
Reinvested dividends......................... 1.297256 1.021880 0.870006 0.558334
Expenses..................................... -0.334076 -0.292064 -0.189820 -0.099741
Ending unit value............................ 26.200345 19.852565 17.584720 11.296489
Percentage increase in unit value*........... 3.8% 3.8% 4.0% 4.2%
<CAPTION>
1995 VIA TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C>
Beginning unit value......................... 24.205890 18.341334 16.181828 10.354108
Reinvested dividends......................... 1.352265 1.062265 0.904803 0.579386
Expenses..................................... -0.320990 -0.280850 -0.182097 -0.095598
Ending unit value............................ 25.237165 19.122749 16.904534 10.837896
Percentage increase in unit value*........... 4.3% 4.3% 4.5% 4.7%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
BOND SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................ 27.068171 24.481177 11.130129
Reinvested capital gains and dividends.......... 1.705519 1.543729 0.703105
Realized and unrealized loss.................... -0.657822 -0.644767 -0.293575
Expenses........................................ -0.349922 -0.267877 -0.099810
Ending unit value............................... 27.765946 25.112262 11.439849
Percentage increase in unit value*.............. 2.6% 2.6% 2.8%
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................ 23.016849 20.817057 9.445623
Reinvested capital gains and dividends.......... 1.304682 1.183172 0.547329
Realized and unrealized gain.................... 3.073599 2.731821 1.232143
Expenses........................................ -0.326959 -0.250873 -0.094966
Ending unit value............................... 27.068171 24.481177 11.130129
Percentage increase in unit value*.............. 17.6% 17.6% 17.8%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
(continued)
<PAGE> 50
OHIO NATIONAL VARIABLE ACCOUNT A For the Years Ended December 31, 1996 and 1995
SCHEDULES OF CHANGES IN UNIT VALUES SCHEDULE 1 (CONTINUED)
OMNI SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 29.404272 29.337035 12.165280
Reinvested capital gains and dividends.............. 1.366386 1.365250 0.570619
Realized and unrealized gain........................ 3.240941 3.169328 1.312455
Expenses............................................ -0.407383 -0.344240 -0.117704
Ending unit value................................... 33.604216 33.527373 13.930650
Percentage increase in unit value*.................. 14.3% 14.3% 14.5%
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 24.217555 24.162172 9.999661
Reinvested capital gains and dividends.............. 0.761229 0.760769 0.317983
Realized and unrealized gain........................ 4.776533 4.710829 1.949149
Expenses............................................ -0.351045 -0.296735 -0.101513
Ending unit value................................... 29.404272 29.337035 12.165280
Percentage increase in unit value*.................. 21.4% 21.4% 21.7%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
INTERNATIONAL SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 14.702847 14.702847 12.892796
Reinvested capital gains and dividends.............. 0.885797 0.887963 0.782224
Realized and unrealized gain........................ 1.266926 1.233157 1.079559
Expenses............................................ -0.206868 -0.175265 -0.126327
Ending unit value................................... 16.648702 16.648702 14.628252
Percentage increase in unit value*.................. 13.2% 13.2% 13.5%
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 13.259582 13.259582 11.604279
Reinvested capital gains and dividends.............. 0.470616 0.470869 0.414884
Realized and unrealized gain........................ 1.153328 1.125369 0.983946
Expenses............................................ -0.180679 -0.152973 -0.110313
Ending unit value................................... 14.702847 14.702847 12.892796
Percentage increase in unit value*.................. 10.9% 10.9% 11.1%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5).
CAPITAL APPRECIATION SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 11.370573 11.370573 12.626458
Reinvested capital gains and dividends.............. 0.638865 0.639735 0.708459
Realized and unrealized gain........................ 1.167969 1.142613 1.272079
Expenses............................................ -0.159158 -0.134672 -0.122006
Ending unit value................................... 13.018249 13.018249 14.484990
Percentage increase in unit value*.................. 14.5% 14.5% 14.7%
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 10.000000 ** 10.000000 ** 10.390128
Reinvested capital gains and dividends.............. 0.270114 0.269661 0.289727
Realized and unrealized gain........................ 1.244208 1.222546 2.053530
Expenses............................................ -0.143749 -0.121634 -0.106927
Ending unit value................................... 11.370573 11.370573 12.626458
Percentage increase in unit value*.................. 13.7% 13.7% 21.5%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
** Period from March 31, 1995, date of commencement of operations.
(continued)
<PAGE> 51
OHIO NATIONAL VARIABLE ACCOUNT A For the Years Ended December 31, 1996 and 1995
SCHEDULES OF CHANGES IN UNIT VALUES SCHEDULE 1 (CONTINUED)
SMALL CAP SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 12.201273 12.201273 15.889068
Reinvested capital gains and dividends.............. 0.267105 0.266757 0.345849
Realized and unrealized gain........................ 1.911186 1.884710 2.457224
Expenses............................................ -0.174357 -0.147533 -0.156510
Ending unit value................................... 14.205207 14.205207 18.535631
Percentage increase in unit value*.................. 16.4% 16.4% 16.7%
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value................................ 10.000000** 10.000000** 12.053440
Reinvested capital gains and dividends.............. 0.031849 0.031767 0.038861
Realized and unrealized gain........................ 2.324070 2.300361 3.927705
Expenses............................................ -0.154646 -0.130855 -0.130938
Ending unit value................................... 12.201273 12.201273 15.889068
Percentage increase in unit value*.................. 22.0% 22.0% 31.8%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
** Period from March 31, 1995, date of commencement of operations.
GLOBAL CONTRARIAN SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP PLUS
<S> <C> <C>
Beginning unit value................................ 10.125502 10.816003
Reinvested capital gains and dividends.............. 0.323131 0.343793
Realized and unrealized gain........................ 0.898359 0.961076
Expenses............................................ -0.120686 -0.105054
Ending unit value................................... 11.226306 12.015818
Percentage increase in unit value*.................. 10.9% 11.1%
<CAPTION>
1995 TOP I TOP PLUS
<S> <C> <C>
Beginning unit value................................ 10.000000*** 10.000000**
Reinvested capital gains and dividends.............. 0.041881 0.044544
Realized and unrealized gain........................ 0.193692 0.867169
Expenses............................................ -0.110071 -0.095710
Ending unit value................................... 10.125502 10.816003
Percentage increase in unit value*.................. 1.3% 8.2%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
** Period from March 31, 1995, date of commencement of operations.
*** Period from October 2, 1995, date of commencement of operations.
AGGRESSIVE GROWTH SUBACCOUNT A
<TABLE>
<CAPTION>
1996 TOP I TOP PLUS
<S> <C> <C>
Beginning unit value................................ 10.499375 12.610012
Reinvested capital gains and dividends.............. 1.572778 1.894804
Realized and unrealized loss........................ -1.495659 -1.801326
Expenses............................................ -0.112693 -0.111100
Ending unit value................................... 10.463801 12.592390
Percentage decrease in unit value*.................. -0.3% -0.1%
<CAPTION>
1995 TOP I TOP PLUS
<S> <C> <C>
Beginning unit value................................ 10.000000*** 10.000000**
Reinvested capital gains and dividends.............. 0.485110 0.560965
Realized and unrealized gain........................ 0.129655 2.158245
Expenses............................................ -0.115390 -0.109198
Ending unit value................................... 10.499375 12.610012
Percentage increase in unit value*.................. 5.0% 26.1%
</TABLE>
* An annualized rate of return cannot be determined as expenses do not
include the contract charges discussed in note (5) .
** Period from March 31, 1995, date of commencement of operations.
*** Period from October 2, 1995, date of commencement of operations.
See accompanying notes to the financial statements.
<PAGE> 52
LOGO OHIO NATIONAL FINANCIAL SERVICES(TM)
Life changes. We'll be there.(TM)
The Ohio National Life Insurance Company
One Financial Way
Cincinnati, Ohio 45242
Post Office Box 237
Cincinnati, Ohio 45201-0237
Telephone: 513-794-6100
www.ohionatl.com
Form 1322 Rev.2/97
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073981
<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
<SERIES>
<NUMBER> 001
<NAME> EQUITY
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 61,446,978
<INVESTMENTS-AT-VALUE> 89,459,131
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 89,459,131
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 421,946
<TOTAL-LIABILITIES> 421,946
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,278,952
<SHARES-COMMON-PRIOR> 1,937,882
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 89,037,185
<DIVIDEND-INCOME> 3,309,014
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 847,614
<NET-INVESTMENT-INCOME> 2,461,400
<REALIZED-GAINS-CURRENT> 1,192,086
<APPREC-INCREASE-CURRENT> 8,919,868
<NET-CHANGE-FROM-OPS> 12,573,354
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,230,931
<NUMBER-OF-SHARES-REDEEMED> 5,781,219
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073981
<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
<SERIES>
<NUMBER> 002
<NAME> MONEY MARKET
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5,794,782
<INVESTMENTS-AT-VALUE> 5,794,782
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,794,782
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 116,447
<TOTAL-LIABILITIES> 116,447
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 364,271
<SHARES-COMMON-PRIOR> 316,764
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 4,678,335
<DIVIDEND-INCOME> 264,732
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 51,812
<NET-INVESTMENT-INCOME> 212,920
<REALIZED-GAINS-CURRENT> (4,499)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 208,421
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,745,658
<NUMBER-OF-SHARES-REDEEMED> 4,065,523
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073981
<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
<SERIES>
<NUMBER> 003
<NAME> BOND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5,056,221
<INVESTMENTS-AT-VALUE> 5,182,509
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,182,509
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,479
<TOTAL-LIABILITIES> 9,479
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT A
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