<PAGE>
THE ONE GROUP-REGISTERED TRADEMARK-
FAMILY OF MUTUAL FUNDS
-------------------------------------------------------------------
MUNICIPAL BOND FUNDS ANNUAL REPORT
FOR THE YEAR ENDED JUNE 30, 1996
INTERMEDIATE TAX-FREE BOND FUND
MUNICIPAL INCOME FUND
KENTUCKY MUNICIPAL BOND FUND
OHIO MUNICIPAL BOND FUND
LOUISIANA MUNICIPAL BOND FUND
<PAGE>
<TABLE>
<S> <C> <C>
IMPORTANT CUSTOMER INFORMATION. INVESTMENT PRODUCTS:
- ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY
BANC ONE CORPORATION OR ANY OF ITS AFFILIATES
- ARE NOT INSURED BY THE FDIC
[NO FDIC]
- ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE
LOSS OF THE PRINCIPAL AMOUNT INVESTED
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
- ----------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
<TABLE>
<S> <C>
Report From Your Investment Advisor....................................................... 2
Portfolio Performance Review.............................................................. 6
Schedules of Portfolio Investments........................................................ 16
Statements of Assets and Liabilities...................................................... 40
Statements of Operations.................................................................. 41
Statements of Changes in Net Assets....................................................... 42
Notes to Financial Statements............................................................. 44
Financial Highlights...................................................................... 55
Report of Independent Accountants......................................................... 70
</TABLE>
1 ----
<PAGE>
- --------------------------------------------------------------------------------
Report From Your Investment Advisor
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
WE ARE PLEASED TO PRESENT THIS ANNUAL REPORT FOR THE ONE GROUP FAMILY OF MUTUAL
FUNDS. ON THE FOLLOWING PAGES, YOU WILL FIND AN OVERVIEW OF THE FINANCIAL
MARKETS AND YOUR FUND'S PERFORMANCE FOR THE PERIOD FROM JUNE 30, 1995, TO JUNE
30, 1996.
DEAR VALUED SHAREHOLDERS:
I would like to extend to you my personal thanks for investing in The One Group
Family of Mutual Funds. The past year was one of exceptional growth and progress
at The One Group, thanks, in large part, to you--the shareholders.
By continuing to show your confidence, you helped The One Group funds achieve
significant growth during the past 12 months. Assets under management soared
from $9.7 billion on June 30, 1995, to $13.6 billion on June 30, 1996, placing
The One Group among the largest bank-advised mutual fund companies.
In addition, The One Group shareholder base nearly tripled during this period,
as the number of shareholder accounts grew from 33,000 on June 30, 1995, to
95,000 on June 30, 1996. Fourteen thousand of these new accounts (and $1.4
billion in assets) resulted from The One Group merger with the Paragon Funds, a
family of mutual funds formerly advised by Premier Bank in Louisiana. I want to
extend a warm welcome to our former Paragon investors as well as ALL our new
shareholders.
We believe that such strong growth is a reflection of The One Group's commitment
to meeting your investment needs through quality products, good investment
performance and top-notch service.
The diversity within The One Group mutual fund family is designed to help you
meet all of your portfolio needs. It also is a reflection of our investment
philosophy, which stresses:
- - ASSET ALLOCATION. When your assets are allocated to different security types
and investment styles according to your goals, time frame and risk tolerance,
you have an effective, well-rounded portfolio.
- - DIVERSIFICATION. By diversifying your investments within each asset class,
you can help reduce the overall risk level in your portfolio.
- - MAINTAINING A LONG-TERM PERSPECTIVE. Short-term market volatility is
unavoidable but usually smooths out over the long term. It's time, not timing,
that allows investments to realize their full potential. It's important to
stay focused on your long-term goals, whether they include planning for
retirement, saving for college expenses or trying to reduce your tax burden.
These are proven investment strategies that we encourage all our shareholders to
embrace--whether it's by assembling a portfolio of assorted individual funds
from The One Group or by investing in a new "fund of funds" alternative, The One
Group Investor Funds.
The One Group Investor Funds*, which will be introduced in early 1997, provide
you with a heightened level of diversification. The One Group Investor Funds are
mutual funds targeted toward specific investment objectives, such as growth,
income or a combination of the two. To achieve their objectives, The One Group
Investor Funds invest in various funds from The One Group family. The One Group
Investor Funds offer a simple and convenient way to enjoy diversification and
asset allocation from ONE investment.
Of course, we believe that there is more to meeting your investment needs than
providing you with a broad selection of mutual funds. In order to make informed
investment decisions, you need information about your investments as well as
access to your accounts. As such, The One Group introduced several new features
this year that make accessing your fund and account information simple and
convenient. Some of the highlights include:
- - THE ONE GROUP WEB SITE. From The One Group home page (www.onegroup.com) you
can access a variety of fund-related information, including prices,
performance updates, fund manager biographies and assorted literature. In
addition, you will find an interactive asset allocation tool that can help you
determine your investor profile and select an appropriate model portfolio.
Future plans call for on-line prospectuses, annual reports and account
transactions as well as an interactive retirement calculator.
- ----2
<PAGE>
- --------------------------------------------------------------------------------
Report From Your Investment Advisor, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
- - THE ONE GROUP PHONE LINK. The new 24-hour automated telephone service
(1-800-480-4111) lets you obtain fund and account information and place
transactions when it is most convenient for you.
- - IN-HOUSE SHAREHOLDER SERVICING. In order to provide the utmost in service, we
have moved the shareholder services unit to an in-house facility. This affords
us better insight and a heightened ability to respond to your needs.
You can be assured that the commitment to high-quality service is ongoing. The
One Group will continue to look for ways to improve and enhance shareholder
services so that you always have the ability to access and obtain information in
a timely and accurate manner.
Again, thank you for placing your trust with The One Group and for helping The
One Group achieve stellar growth over the past year. All of us at Banc One
Investment Advisors and The One Group appreciate your support as we work toward
our most important investment objective--helping you achieve your financial
goals.
Sincerely,
[SIG]
David J. Kundert
PRESIDENT & CEO,
BANC ONE INVESTMENT ADVISORS CORPORATION,
INVESTMENT ADVISOR TO THE ONE GROUP
[PHOTO]
- ---------
* A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. THESE
SECURITIES MAY NOT BE SOLD NOR MAY OFFER TO BUY BE ACCEPTED PRIOR TO THE TIME
THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS LETTER SHALL NOT CONSTITUTE
AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY
SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR
SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAW OF ANY SUCH STATE.
3 ----
<PAGE>
- --------------------------------------------------------------------------------
Report From Your Investment Advisor, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
ECONOMIC REVIEW
The economy grew at an average rate of 2.1% from the third quarter of 1995
through the first quarter of 1996. While the actual numbers weren't available at
the time of this writing, it is expected that the pace of economic activity
gained additional momentum during the second quarter of 1996. (Preliminary
readings on the actual growth pace of economic activity during the second
quarter is not released until August.)
Given this fundamental backdrop, short-term interest rates controlled by the
Federal Reserve (the federal funds rate) declined from 5.6% during the second
quarter of 1995 to approximately 5.25% at the end of the second quarter of 1996.
On the inflation front, the change in overall prices remained quite stable as
consumer prices rose by 3.0% (on a year-over-year basis) through the end of June
1995 compared to a similar figure of approximately 2.9% at the end of May 1996.
Over the last 12 months, financial market sentiment fluctuated from expecting an
immediate recession at the beginning of 1996 to the belief that the economy was
caught in the midst of an overheated expansion requiring much higher short-term
rates in order to slow it down to non-inflationary growth levels. This swing in
market sentiment clearly was observed in the bond market as heightened
inflationary concerns caused the yield on the 30-year Treasury bond to rise from
a level of 5.95% at the beginning of the year to 6.87% on June 30, 1996. (In the
bond market, as yields increase, prices decline.) In contrast, equity markets
performed quite favorably as measured by the Dow Jones Industrial Average, which
rose by 24.11% during the 12 months ended June 1996, and the Standard & Poor's
500 Index, which rose by 26.05%.
One popular daily inflationary indicator monitored closely by financial market
participants is the Commodity Research Bureau's (CRB) Future Price Index, which
rose from 244.25 at the beginning of this fiscal year to a peak of 261.81 on
April 25, 1996. This was the highest level recorded for the CRB since it stood
at 263.26 on July 7, 1988. While financial market participants tend to closely
monitor the daily fluctuations in the CRB, our own analysis suggests that the
movements in the CRB are a poor leading indicator of actual inflationary trends.
Nonetheless, in light of the recent declines in this overall index, some
speculate that the prospects for much lower bond yields could be forthcoming
over the next 12 months.
However, at the close of the second quarter of 1996, financial markets began to
expect that the U.S. central bank would soon begin raising short-term rates to
quell the growing inflationary pressures that had begun to surface in the labor
market. Although the Fed kept short-term rates steady, the growing speculation
focused on when--rather than if--short-term rates would be increased. Given this
scenario, investing in both equity and credit markets became a bit more
challenging as the prospects of higher short-term rates cast a dark cloud upon
the financial markets. In fact, the robust pace of growth during the second
quarter of 1996, along with the rising pace of labor market costs, lead us to
conclude that short-term rates have no where else to go but up during the next
six months.
Although we expect some investment challenges to unfold over the next year, we
believe that pursuing a long-term investment approach is likely to continue
producing favorable results. As demonstrated by movements in both the stock and
bond markets over the last several years, investing with only a short-term focus
has not always been prudent. Therefore, we encourage our investors to maintain
longer-term horizons. This type of time frame provides much better insulation
against the short-term fluctuations that are endemic within our financial
markets.
[SIG]
Anthony Chan, Ph.D.
CHIEF ECONOMIST, BANC ONE INVESTMENT ADVISORS CORPORATION
- ----4
<PAGE>
(This page has been left blank intentionally.)
5 ----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Intermediate Tax-Free Bond Fund
Portfolio Performance Review
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
The One Group Intermediate Tax-Free Bond Fund Fiduciary share class posted a
total return of 5.39% for the one-year period ended June 30, 1996. (For
information on other share classes and performance comparisons to indexes,
please see page 7.)
The Fund's 30-day SEC yield of 4.99% (Fiduciary share class) on June 30, 1996,
was slightly higher than its June 30, 1995, yield of 4.88%. This reflects the
slight year-over-year increase in yields that has occurred in the intermediate
municipal market. (For investors in the 39.6% federal income tax bracket, the
June 30, 1996, yield translates into a 8.26% tax-equivalent yield.)
Due to the movement in interest rates and the rise and fall of the flat tax
debate, the Fund's share price movement was modest. For the first seven months
of the fiscal year, the Fund gained about 45 cents per share while maintaining
an attractive tax-free yield. However, interest rates began moving upward early
in 1996, and, as a result, the Fund gave back its earlier price gains.
For most of the fiscal year, the Fund was relatively long in duration and
average maturity. The Fund's longer posture provided favorable returns in the
last half of 1995, but it worked against the Fund in 1996 as the market began to
trade off. We felt that the overall reduction in the issuance of municipal bonds
and the record number of bonds exiting the market via maturity, calls and
defeasance--coupled with a belief earlier in the period that interest rates
would continue their downward trend--indicated that a slightly longer duration
would benefit the Fund. We therefore maintained a duration range of 6.0 years to
6.4 years throughout the period.
The Fund maintained its high overall credit quality during the period. During
the past year, at least 65% of the Fund was invested in the highest-rated
securities-- those rated AAA. We expect this trend to continue, particularly
since the yield advantage that A-rated bonds offer over AAA-rated bonds is not
sufficient enough to sacrifice the better liquidity that the higher-quality
bonds provide.
By maintaining a high credit quality portfolio and buying bonds with premium
coupons during the period, we were able to avoid market discount problems, which
occur when certain bonds trade at discounts to their original issue price.
Premium bonds also offered better downside protection than discount and par
bonds.
The Fund continued to employ its "relative value" strategy during the fiscal
year. Given the supply and demand nature of the municipal market, we tend to
purchase bonds in states that are experiencing a temporary surplus of supply.
This acts to artificially depress prices until all the bonds are sold.
Conversely, when the supply of bonds in a given state or sector is low, the
price of bonds in that state or sector will be forced up. We attempt to take
advantage of these anomalies in the market by buying when supply is high and
selling when supply is low. These tactics are employed while maintaining an
overall portfolio structure that will allow us the flexibility to generate a
rate of return that is in line with the Fund's peer group.
We plan to maintain the Fund's existing posture over the near term. We will
remain slightly longer in duration and average maturity than market averages to
maintain a higher yield, and we will continue to purchase and sell bonds based
on their relative value in the market. On the political front, we remain
cautious toward the tax debate. Renewed talks of tax reform and its potential
effects on the municipal market may cause us to reassess the portfolio structure
in order to protect the Fund from share price declines and take advantage of
buying opportunities that may arise from a market overreaction.
[SIG]
Patrick M. Morrissey,
FUND MANAGER
[SIG]
Gary J. Madich, CFA
SENIOR MANAGING DIRECTOR OF FIXED-INCOME SECURITIES
- ----6
<PAGE>
- --------------------------------------------------------------------------------
The One Group Intermediate Tax-Free Bond Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Fiduciary Municipal Bond Index Municipal Bond Fund Index
09/04/90 10,000 10,000 10,000
06/30/91 10,777 10,815 10,785
06/30/92 11,805 11,996 11,894
06/30/93 12,961 13,284 13,071
06/30/94 12,946 13,451 13,201
06/30/95 13,820 14,558 14,094
06/30/96 14,564 14,815 15,365
Average Annual Total Return
As of June 30, 1996
Since
1 Year 5 Year Inception
(9/4/90)
Fiduciary 5.39% 6.21% 6.67%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C> <C>
Lehman Brothers 7 Year Lipper Intermediate
Class A No Load Class A * Load Municipal Bond Index Municipal Bond Fund Index
02/18/92 10,000 9,550 10,000 10,000
06/30/92 10,314 9,850 10,350 10,320
06/30/93 11,291 10,783 11,461 11,341
06/30/94 11,253 10,747 11,605 11,454
06/30/95 11,983 11,444 12,560 12,229
06/30/96 12,616 12,045 13,256 12,854
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(2/18/92)
Class A 5.28% 5.46%
Class A* 0.52% 4.35%
* Reflects 4.50% Sales Charge
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman 7 year
Class B No Load Class B ** Load Municipal Bond Index
01/14/94 10,000 9,600 10,000
06/30/94 9,552 9,176 9,724
06/30/95 10,115 9,734 10,524
6/30/96 10,568 10,282 11,107
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(1/14/94)
Class B 4.48% 2.27%
Class B** 0.48% 1.14%
** Reflects Applicable Contingent Deferred Sales Charge
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C>
Lipper Intermediate
Municipal Bond Fund Index
01/14/94 10,000
06/30/94 9,700
06/30/95 10,357
6/30/96 10,886
Average Annual Total Return
As of June 30, 1996
Class B
Class B**
** Reflects Applicable Contingent Deferred Sales Charge
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The performance of the Intermediate Tax Free Bond Fund is measured against the
Lehman Brothers 7 Year Municipal Bond Index, an unmanaged Index comprised of
investment-grade municipal bonds with maturities close to seven years. Investors
are unable to purchase the Index directly, although they can invest in the
underlying securities. The performance of the Index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the Fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B Shares.
The Lipper Intermediate Municipal Bond Fund Index consists of the equally
weighted average monthly return of the largest funds within the universe of all
funds in the category.
7 ----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Municipal Income Fund
Portfolio Performance Review
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
THE ONE GROUP MUNICIPAL INCOME FUND
For the one-year ended June 30, 1996, The One Group Municipal Income Fund
(formally the Tax-Free Bond Fund) Fiduciary share class posted a total return of
5.54%. (For information on other share classes and performance comparisons to
indexes, please see page 9.)
The Fund's 30-day SEC yield was 5.73% on June 30, 1996, about .40% lower than it
was on June 30, 1995. This was due to the addition of some bonds that exhibit
greater price stability and slightly less yield than the typical housing bonds
that are in the portfolio. The slight yield decline also can be attributed to
certain bonds that will offer greater price appreciation potential should the
market continue its downward trend. (For investors in the 39.6% federal income
tax bracket, the June 30, 1996, yield translates into a 9.49% tax-equivalent
yield.)
The major factors affecting the Fund's total return during the year were the
upswing in interest rates during the first half of 1996 and the tax reform
debate. Fund share prices peaked in early December; however, as interest rates
began an upswing early in 1996, the Fund gave back some of these gains. Early in
the period, the issue of tax reform held back the municipal market, but the
issue lost momentum after Steve Forbes exited the presidential race.
The Municipal Income Fund emphasizes premium mortgage revenue bonds and bonds
structured to repay principal on an annual or more-frequent basis. The resulting
cash flow provides the Fund's high current income and relative price stability,
especially in a rising interest rate environment.
The sectors that the Fund concentrates in performed particularly well in the
rising interest rate environment of 1996. These defensive-type bonds include
higher coupon housing bonds with short average life and bonds with active
sinking funds that let us know exactly what the cash flow will be. The only
disappointment was the duration extension we initiated in late 1995 by adding
zero-coupon bonds--just before the bond market began its slide in early 1996.
Nevertheless, these bonds contributed to the Fund's good performance at the end
of 1995 and again in May and June when the market showed signs of rebounding
from poor economic news.
The Fund's average duration remained in the range of 5.2 years to 6.0 years
during the year. The month-to-month changes were a result of security
selection--we emphasize security selection over interest rate management--and
cash flow variances. Earlier in the year, however, we set out to slightly
increase the Fund's duration. The overall reduction in the issuance of municipal
bonds and the record number of bonds exiting the market via maturity, calls and
defeasance, coupled with our belief that interest rates would continue moving
downward, warranted a small duration extension. Nevertheless, the Fund's
duration remained lower than average. As a result, the Fund was not as
vulnerable to interest rate increases as longer-duration funds. (In periods of
falling interest rates, funds with longer durations typically experience greater
price appreciation. When interest rates increase, funds with shorter durations
usually experience less price volatility.)
The Fund's average credit quality remained high during the year. We increased
the Fund's overall portfolio credit quality by purchasing higher-quality bonds,
holding bonds that have been upgraded in quality and reducing the amount of
non-rated bonds. As of June 30, 1996, 41% of the portfolio was invested in
AAA-rated bonds, 28% in AA-rated, 22% in A-rated, 2% in BBB-rated and 7% in non-
rated.*
We plan to maintain the Fund's current posture during the next year. We believe
that adhering to our investment philosophy may lead to favorable long-term
returns. We do, however, remain concerned about the political environment.
Renewed talks of tax reform and its potential effects on the municipal market
may cause us to reassess the portfolio structure in order to protect the Fund
from share price declines and take advantage of buying opportunities that may
arise from a market overreaction.
[SIG]
Patrick M. Morrissey
FUND MANAGER
[SIG]
Gary J. Madich, CFA
SENIOR MANAGING DIRECTOR OF FIXED-INCOME SECURITIES
- ----------
* THE PORTFOLIO'S COMPOSITION IS SUBJECT TO CHANGE.
- ----8
<PAGE>
- --------------------------------------------------------------------------------
The One Group Municipal Income Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers Lipper Intermediate
Fiduciary Housing Bond Index Municipal Bond Fund Index
02/02/93 10,000 10,000 10,000
06/30/93 10,303 10,528 10,439
06/30/94 10,444 10,662 10,543
06/30/95 11,118 11,556 11,256
06/30/96 11,734 12,420 11,832
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(2/2/93)
Fiduciary 5.54% 4.83%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C> <C>
Lehman Brothers Lipper Intermediate
Class A No Load Class A * Load Housing Bond Index Municipal Bond Fund Index
02/23/93 10,000 9,550 10,000 10,000
06/30/93 10,242 9,781 10,528 10,439
06/30/94 10,379 9,912 10,662 10,543
06/30/95 11,023 10,527 11,556 11,256
06/30/96 11,612 11,090 12,420 11,832
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(2/23/93)
Class A 5.35% 4.56%
Classs A* 0.59% 3.14%
* Reflects 4.50% Sales Charge
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C> <C>
Lehman Brothers Lipper Intermediate
Class B No Load Class B ** Load Housing Bond Index Municipal Bond Fund Index
01/14/94 10,000 9,600 10,000 10,000
06/30/94 9,802 9,420 10,127 9,700
06/30/95 10,349 9,965 10,976 10,357
06/30/96 10,830 10,543 11,797 10,886
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(01/14/94)
Class B 4.65% 3.29%
Class B** 0.66% 2.17%
** Reflects Applicable Contingent
Deferred Sales Charge
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The performance of the Municipal Income Fund is measured against the Lehman
Brothers Housing Bond Index, an unmanaged Index comprised of municipal housing
bonds. Investors are unable to purchase the Index directly, although they can
invest in the underlying securities. The performance of the Index does not
reflect the deduction of expenses associated with a mutual fund, such as
investment management. By contrast the performance of the Fund reflects the
deduction of these value-added services as well as the deduction of sales
charges on Class A Shares and applicable contingent deferred sales charges on
Class B Shares.
The Lipper General Municipal Bond Fund Index consists of the equally weighted
average monthly return of the largest funds within the universe of all funds in
the category.
9 ----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Kentucky Municipal Bond Fund
Portfolio Performance Review
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
The One Group Kentucky Municipal Bond Fund Fiduciary share class posted a total
return of 6.35% for the one-year period ended June 30, 1996. (For information on
other share classes and performance comparisons to indexes, please see page 11.)
The Fund's objective is to provide a relatively high level of income,
consistency of returns and minimum volatility. To that end, we focused on
premium bonds with good structures--or those that pay an attractive interest
rate and those for which the difference between the call date and the maturity
date is fairly tight. Structure is an important consideration for all of the
Fund's securities since our supply of potential investments is limited. Rather
than emphasizing a particular strategy or market sector, we must focus on
securities with good structures and good long-term prospects.
In our efforts to maintain a high level of income, we kept the average coupon
rate around 5.75%. We were able to do this by concentrating on bonds in the 15-
to 20-year maturity range. Most bonds have call features, particularly those
that mature in 10 or more years. By purchasing bonds in the 15- to 20-year
maturity range that have tight call-to-maturity structures, we don't have to
worry about the call feature being exercised for at least 10 years. As interest
rates move up and down, this structure helps control price volatility, since
there should not be any dramatic moves from the price-to-call to the
price-to-maturity.
In an effort to smooth out the Fund's performance, we shortened the Fund's
duration during the year. At the start of the fiscal year, the Fund's duration
was about 6.3 years; by early February, the Fund's duration was down to 5.7
years. This strategy worked well, since the Fund's duration was its highest when
interest rates were falling, and, as interest rates increased, the Fund's
duration was on its way down. (In periods of falling interest rates, funds with
higher durations typically experience greater price appreciation. When interest
rates increase, funds with shorter durations usually experience less price
volatility.) Often, a side effect to lowering a fund's duration is a decrease in
yield. However, the Fund's 30-day SEC yield on the Fiduciary share class
remained relatively unchanged from June 30, 1995, when it was 4.74%, to June 30,
1996, when it was 4.78%. (For investors in the 39.6% federal income tax bracket,
the June 30, 1996, tax-free yield translates into a 7.91% tax-equivalent yield.)
After causing some turmoil in the municipal market in 1995, tax reform became a
dead issue during the past 12 months. By the start of the fiscal year, municipal
bonds, for the most part, already had adjusted to tax reform. The movements in
the market after June 30, 1995, were due to the likelihood that tax reform would
not come to fruition, particularly after Steve Forbes left the presidential
race. It is possible, however, that the issue will come up again later this
year, as the presidential campaign kicks into high gear. In that case, we would
expect to slightly increase the Fund's cash component rather than make any major
buy or sell decisions.
[SIG]
David M. Sivinski, CFA
FUND MANAGER
[SIG]
Gary J. Madich, CFA
SENIOR MANAGING DIRECTOR OF FIXED-INCOME SECURITIES
- ----10
<PAGE>
- --------------------------------------------------------------------------------
The One Group Kentucky Municipal Bond Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Fiduciary Municipal Bond Index Municipal Bond Fund Index
02/20/93 10,000 10,000 10,000
06/30/93 10,221 10,453 10,439
06/30/94 10,250 10,585 10,543
06/30/95 10,935 11,456 11,256
06/30/96 11,630 12,090 11,832
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(2/20/93)
Fiduciary 6.35% 4.68%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Class A No Load Class A * Load Municipal Bond Index Municipal Bond Fund Index
01/20/93 10,000 9,550 10,000 10,000
06/30/93 10,221 9,761 10,605 10,559
06/30/94 10,250 9,789 10,739 10,664
06/30/95 10,935 10,444 11,623 11,386
06/30/96 11,559 11,039 12,266 11,968
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(1/20/93)
Class A 5.70% 4.48%
Class A* 0.92% 3.04%
* Reflects 4.50% Sales Charge
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year
Class B No Load Class B ** Load Municipal Bond Index
03/23/95 10,000 9,500 10,000
06/30/95 10,263 9,763 10,391
06/30/96 10,792 10,392 10,967
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(3/23/95)
Class B 5.16% 6.07%
Class B** 1.16% 3.02%
** Reflects Applicable Contingent Deferred Sales Charge
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C>
Lipper Intermediate
Municipal Bond Fund Index
03/23/95 10,000
06/30/95 10,316
06/30/96 10,843
Average Annual Total Return
As of June 30, 1996
Class B
Class B**
** Reflects Applicable Contingent Deferred Sales Charge
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The performance of the Kentucky Municipal Bond Fund is measured against the
Lehman Brothers 7 Year Municipal Bond Index, an unmanaged index comprised of
investment-grade municipal bonds with maturities close to seven years. Investors
are unable to purchase the index directly, although they can invest in the
underlying securities. The performance of the index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the Fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B Shares.
The Lipper Intermediate Municipal Bond Fund Index consists of the equally
weighted average monthly return of the largest funds within the universe of all
funds in the category.
11----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Ohio Municipal Bond Fund
Portfolio Performance Review
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
THE ONE GROUP OHIO MUNICIPAL BOND FUND
The One Group Ohio Municipal Bond Fund Fiduciary share class posted a total
return of 5.69% for the one-year period ended June 30, 1996. (For information on
other share classes and performance comparisons to indexes, please see page 13.)
The primary factor contributing to the Fund's performance was duration. We
focused on lowering the Fund's duration from 5.7 years on June 30, 1995, to 5.3
years by the end of the year. This strategy worked well, since the Fund's
duration was its highest when interest rates were falling, and, as interest
rates increased, the Fund's duration was on its way down. (In periods of falling
interest rates, funds with higher durations typically experience greater price
appreciation. When interest rates increase, funds with shorter durations usually
experience less price volatility.)
A side effect to lowering the Fund's duration was a slight decrease in yield.
The 30-day SEC yield on the Fund's Fiduciary share class fell slightly from June
30, 1995, when it was 4.74%, to June 30, 1996, when it was 4.64%. (For investors
in the 39.6% federal income tax bracket and the 7.5% Ohio personal income tax
bracket, the June 30, 1996, tax-free yield translates into an 7.68%
tax-equivalent yield.)
Most of the Fund's return was generated from coupon income; changing interest
rates had little overall impact on the Fund's one-year return. For the first
7 1/2 months of the year, interest rates moved steadily downward, causing bond
prices to move upward. The market witnessed an across-the-board decline from
0.65% to 0.75%, depending on the point on the yield curve. From mid-February to
June 30, however, the scenario was reversed. The market gave up nearly all of
the price appreciation caused by the earlier interest rate drops, resulting in
no net effect on the Fund's return.
The objective of the Fund is to provide a relatively high level of income,
consistency of returns and minimum volatility. To that end, we focused on
premium bonds offering high coupons and good structures--or those that pay a
decent interest rate and those for which the difference between the call date
and the maturity date is fairly tight. Because The One Group Ohio Municipal Bond
Fund is a single-state fund, our supply of potential investments is limited. As
a result, we have to view each investment with a long-term perspective-- we are
limited in our ability to capitalize on the ups and downs of the market. That's
why the structure of each individual security is such an important
consideration.
In our efforts to maintain a high level of income, we kept the average coupon
rate around 5.75%. We were able to do this by concentrating on bonds in the 15-
to 20-year maturity range. Most bonds have call features, particularly those
that mature in 10 or more years. By purchasing bonds in the 15- to 20-year
maturity range that have tight call-to-maturity structures, we don't have to
worry about the call feature being exercised for at least 10 years. As interest
rates move up and down, this structure helps control price volatility, since
there should not be any dramatic moves from the price-to-call to the
price-to-maturity.
After causing some turmoil in the municipal market in 1995, tax reform became a
dead issue earlier this calendar year. By the start of the fiscal year,
municipal bonds, for the most part, already had adjusted to tax reform. The
movements in the market after June 30, 1995, were due to the increasing
likelihood that tax reform would not come to fruition, particularly after Steve
Forbes left the presidential race. It is possible, however, that the issue will
come up again later this year, as the presidential campaign kicks into high
gear. In that case, we would expect to slightly increase the Fund's cash
component rather than make any major buy or sell decisions.
[SIG]
David M. Sivinski, CFA
FUND MANAGER
[SIG]
Gary J. Madich, CFA
SENIOR MANAGING DIRECTOR OF FIXED-INCOME SECURITIES
- ----12
<PAGE>
- --------------------------------------------------------------------------------
The One Group Ohio Municipal Bond Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Fiduciary Municipal Bond Index Municipal Bond Fund Index
07/02/91 10,000 10,000 10,000
06/30/92 11,061 10,982 11,028
06/30/93 12,325 12,161 12,119
06/30/94 12,334 12,314 12,240
06/30/95 13,083 13,327 13,068
06/30/96 13,827 14,065 13,736
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(7/2/91)
Fiduciary 5.69% 6.70%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Class A No Load Class A * Load Municipal Bond Index Municipal Bond Fund Index
02/18/92 10,000 9,550 10,000 10,000
06/30/92 10,393 9,925 10,350 10,320
06/30/93 11,577 11,056 11,461 11,341
06/30/94 11,572 11,051 11,605 11,454
06/30/95 12,242 11,691 12,560 12,229
06/30/96 12,908 12,327 13,256 12,854
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(2/18/92)
Class A 5.44% 6.02%
Class A* 0.72% 4.91%
* Reflects 4.50% Sales Charge
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year
Class B No Load Class B Load* Municipal Bond Index
01/14/94 10,000 9,600 10,000
06/30/94 9,598 9,220 9,724
06/30/95 10,095 9,715 10,524
06/30/96 10,578 10,292 11,107
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(1/14/94)
Class B 4.79% 2.31%
Class B** 0.79% 1.18%
** Reflects Applicable Contingent Deferred Sales Charge
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C>
Lipper Intermediate
Municipal Bond Fund Index
01/14/94 10,000
06/30/94 9,700
06/30/95 10,357
06/30/96 10,886
Average Annual Total Return
As of June 30, 1996
Class B
Class B**
** Reflects Applicable Contingent Deferred Sales Charge
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The performance of the Ohio Municipal Bond Fund is measured against the Lehman
Brothers 7 Year Municipal Bond Index, an unmanaged Index comprised of
investment-grade municipal bonds with maturities close to seven years. Investors
are unable to purchase the Index directly, although they can invest in the
underlying securities. The performance of the Index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the Fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B Shares.
The Lipper Intermediate Municipal Bond Fund Index consists of the equally
weighted average monthly return of the largest funds within the universe of all
funds in the category.
13----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Louisiana Municipal Bond Fund
Portfolio Performance Review
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
NOTE: THE FUND, FORMERLY KNOWN AS THE PARAGON LOUISIANA MUNICIPAL BOND FUND,
JOINED THE ONE GROUP FAMILY OF FUNDS ON MARCH 26, 1996. PRIOR TO THIS, THE FUND
WAS MANAGED BY PREMIER INVESTMENT ADVISORS, AN INVESTMENT SUBSIDIARY OF PREMIER
BANCORP. AS A MEMBER OF THE PARAGON FAMILY, THE FUND ENDED ITS FISCAL YEAR ON
NOVEMBER 30. THIS REPORT, THEREFORE, COVERS THE PERIOD FROM DECEMBER 1, 1995, TO
JUNE 30, 1996.
The One Group Louisiana Municipal Bond Fund Fiduciary share class posted a total
return of 0.90% for the seven-month period ended June 30, 1996. (For information
on other share classes and performance comparisons to indexes, please see page
15.)
The 30-day SEC yield on the Fund's Fiduciary share class increased along with
the general move in interest rates during the first six months of 1996. The
Fund's yield increased from 4.46% on November 30, 1995, to 4.58% on June 30,
1996. (For investors in the 39.6% federal income tax bracket, the June 30, 1996,
tax-free yield translates into a 7.58% tax-equivalent yield.)
The Fund's return can be attributed primarily to its relatively short duration.
Since the beginning of the period, the Fund's duration ranged from 4.47 years to
4.66 years. As interest rates began an upswing in February, the Fund did not
experience as much price depreciation as it would have if its duration was
longer. (In periods of falling interest rates, funds with higher durations
typically experience greater price appreciation. When interest rates increase,
funds with shorter durations usually experience less price volatility.)
The objectives of the Fund are to provide a relatively high level of income,
consistency of returns and minimum volatility. To that end, we focused on
premium bonds with good structures--or those that pay a decent interest rate and
those for which there is little difference between the call date and the
maturity date. Structure is an important consideration for all of the Fund's
securities since our supply of potential investments is limited. Rather than
emphasizing a particular strategy or market sector, we must focus on securities
with good structures and good long-term prospects.
In our efforts to maintain a high level of income, we kept the average coupon
rate around 6.25%. We were able to do this by concentrating on bonds in the 15-
to 20-year maturity range. Most bonds have call features, particularly those
that mature in 10 or more years. By purchasing bonds in the 15- to 20-year
maturity range that have tight call-to-maturity structures, we don't have to
worry about the call feature being exercised for at least 10 years. As interest
rates move up and down, this structure helps control price volatility, since
there should not be any dramatic moves from the price-to-call to the
price-to-maturity.
We also were able to maintain a high quality profile in the Fund, despite the
fact that Louisiana bonds are among the lower-rated state-issued securities in
the country. Two-thirds of the portfolio's securities were rated AAA, the
highest rating, on June 30, 1996, due to bonds being escrowed or insured.*
Looking ahead, we do not foresee making any major strategy changes in the Fund.
We will continue to strive for a high level of income from bonds with good
structures. We believe that interest rates may continue to move upward over the
remainder of the calendar year, so any attempts to lengthen the Fund's duration
will be carefully evaluated. The issue of tax reform may heat up again as the
presidential election nears. In that case, we would expect to slightly increase
the Fund's cash component rather than make any major buy or sell decisions.
[SIG]
David M. Sivinski, CFA
FUND MANAGER
[SIG]
Gary J. Madich, CFA
SENIOR MANAGING DIRECTOR OF FIXED INCOME SECURITIES
- ---------
* THE FUND'S COMPOSITION IS SUBJECT TO CHANGE.
- ----14
<PAGE>
- --------------------------------------------------------------------------------
The One Group Louisiana Municipal Bond Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Fiduciary Municipal Bond Index Municipal Bond Fund Index
12/29/89 10,000 10,000 10,000
06/30/90 10,339 10,274 10,248
06/30/91 11,182 11,187 11,098
06/30/92 12,295 12,410 12,239
06/30/93 13,550 13,743 13,450
06/30/94 13,685 13,917 13,584
06/30/95 14,584 15,062 14,503
06/30/96 15,375 15,896 15,244
Average Annual Total Return
As of June 30, 1996
Since
1 Year 5 Year Inception
(12/29/89)
Fiduciary 5.42% 6.58% 6.83%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C> <C>
Lehman Brothers 7 year Lipper Intermediate
Class A No Load Class A Load Municipal Bond Index Municipal Bond Fund Index
12/29/89 10,000 9,550 10,000 10,000
06/30/90 10,339 9,873 10,274 10,248
06/30/91 11,182 10,679 11,187 11,098
06/30/92 12,295 11,742 12,410 12,239
06/30/93 13,550 12,940 13,743 13,450
06/30/94 13,685 13,069 13,917 13,584
06/30/95 14,584 13,928 15,062 14,503
06/30/96 15,375 14,673 15,896 15,244
Average Annual Total Return
As of June 30, 1996
Since
1 Year 5 Year Inception
(12/29/89)
Class A 5.36% 6.56% 6.80%
Class A* 0.61% 5.58% 6.07%
* Reflects 4.50% Sales Charge
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C> <C> <C>
Lehman Brothers 7 year
Class B No Load Class B Load Municipal Bond Index
12/31/94 10,000 9,500 10,000
06/30/95 10,482 10,082 10,824
06/30/96 10,970 10,570 11,424
Average Annual Total Return
As of June 30, 1996
Since
1 Year Inception
(12/31/94)
Class B 4.66% 5.31%
Class B** 0.66% 3.13%
** Reflects Applicable Contingent Deferred Sales Charge
<CAPTION>
VALUE OF $10,000 INVESTMENT
<S> <C>
Lipper Intermediate
Municipal Bond Fund Index
12/31/94 10,000
06/30/95 10,614
06/30/96 11,157
Average Annual Total Return
As of June 30, 1996
Class B
Class B**
** Reflects Applicable Contingent Deferred Sales Charge
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The performance of the Louisiana Municipal Bond Fund is measured against the
Lehman Brothers 7 Year Municipal Bond Index, an unmanaged index comprised of
investment-grade municipal bonds with maturities close to seven years. Investors
are unable to purchase the Index directly, although they can invest in the
underlying securities. The performance of the Index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the Fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent sales charges on Class B Shares.
The Lipper Intermediate Municipal Bond Fund Index consists of the equally
weighted average monthly return of the largest funds within the universe of all
funds in the category.
15----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
INTERMEDIATE TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS (101.7%):
Alaska (2.5%):
$ 1,000 Anchorage, 6.00%, 10/1/10.................. $ 1,048
3,625 North Slope Boro, GO, Series A, 5.90%,
6/30/03.................................. 3,794
1,415 North Slope Boro, GO, Series B, 0.00%,
6/30/04.................................. 926
---------
5,768
---------
Arizona (4.8%):
1,000 Educational Loan Marketing Corp., 7.30%,
9/1/03, MBIA............................. 1,057
1,000 Educational Loan Marketing Corp., 7.35%,
9/1/04, Callable 9/1/99 @102**........... 1,056
775 Educational Loan Marketing Corp., 7.38%,
9/1/05, Callable 9/1/99 @102**........... 817
400 Maricopa County Pollution Control Corp.,
3.60%, 5/1/29, LOC: Bank of America*..... 400
1,000 Maricopa County School District No. 4 Mesa
United, GO, Series E, 5.55%, 7/1/04...... 1,025
1,000 Maricopa County School District No. 11
Peoria, GO, 5.75%, 7/1/05................ 1,049
2,500 Maricopa County Unified School District No.
097 Deer Valley, 5.10%, 7/1/06, GO,
Callable 7/1/04 @102..................... 2,489
1,500 Phoenix Airport Revenue, Series D, 6.00%,
7/1/06, AMT, Callable 7/1/04 @102........ 1,564
1,305 Pima County Community College District, GO,
6.38%, 7/1/07, Callable 7/1/06 @101...... 1,428
---------
10,885
---------
California (2.8%):
1,250 Housing Finance Agency Revenue, Series G,
5.70%, 8/1/07, AMT, Callable 8/1/05
@102..................................... 1,257
3,000 Sacramento Municipal Utilities, 5.40%,
11/15/06*................................ 2,946
1,000 San Francisco City & County Airports Common
International Airport Revenue, 6.30%,
5/1/11, Callable 5/1/02 @102............. 1,041
1,040 South County Regional Wastewater Authority
Revenue, 6.00%, 8/1/07, FGIC, Callable
8/1/02 @102**............................ 1,089
---------
6,333
---------
Colorado (9.8%):
1,000 Adams County School District No. 12, GO,
6.75%, 12/15/07, Callable 12/15/05
@102..................................... 1,131
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 3,290 Arapahoe County Capital Improvements,
0.00%, 8/31/03........................... $ 2,106
1,135 Arapahoe County School District No. 001
Englewood, GO, 0.00%, 11/1/09............ 529
1,580 Boulder County Revenue GO, 6.90%, 12/1/07,
Callable 12/1/01 @101.................... 1,703
2,000 Denver City & County Airport Revenue,
Series B, 5.75%, 11/15/09, AMT, Callable
11/15/06 @102............................ 1,976
9,750 Denver City & County School District No. 1,
GO, Series A, 0.00%, 12/1/06............. 5,477
1,000 Denver City & County School District, No.
1, GO, 5.50%, 6/1/07..................... 1,003
1,000 El Paso County School District GO, Series
B, 6.35%, 12/15/06....................... 1,093
2,210 Fort Collins Wastewater Utility Enterprise
Sewer Revenue, 5.25%, 12/1/07, Callable
12/1/05 @100............................. 2,202
3,260 Housing Finance Authority, Series A, 6.40%,
8/1/06, Callable 8/1/02 @102............. 3,376
405 Mountain College Residence Hall Authority,
5.25%, 6/1/07, Callable 6/1/06 @101...... 404
430 Mountain College Residence Hall Authority,
5.38%, 6/1/08, Callable 6/1/06 @101**.... 429
740 Student Obligation Bond Authority, Student
Loan Revenue, Series A-3, 7.25%, 9/1/05,
AMT, Callable 9/1/00 @100................ 776
---------
22,205
---------
Connecticut (1.6%):
1,000 Bridgeport, GO, 6.50%, 9/1/08 1,083
2,475 State, GO, Series B, 6.00%, 10/1/05........ 2,636
---------
3,719
---------
District of Columbia (0.8%):
1,000 3.80%, 10/1/07, LOC: Toronto Dominion
Bank*.................................... 1,000
875 GO, Series B, 5.40%, 6/1/02................ 887
---------
1,887
---------
Florida (3.9%):
1,300 Broward County Housing Authority, 5.55%,
7/1/09, Callable 7/1/06 @102............. 1,300
1,000 Dade County Aviation Revenue, Series A,
6.00%, 10/1/08, Callable 10/1/05 @102.... 1,052
</TABLE>
CONTINUED
- ----16
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
INTERMEDIATE TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Florida, continued:
$ 2,000 Escambia County Housing Finance Authority,
Multifamily Housing Revenue, 5.75%,
4/1/04, Callable 4/1/99 @102............. $ 2,005
2,300 Halifax Hospital Medical Center Florida,
Series A, 4.00%, 10/1/19*................ 2,300
3,595 Osceola County Transportation Revenue,
0.00%, 4/1/14, Callable 4/1/02 @47.62.... 1,197
1,000 State Division Bond Finance Department,
General Services Revenue, 5.13%, 7/1/07,
FSA, Callable 7/1/05 @101................ 987
---------
8,841
---------
Georgia (3.2%):
1,000 Atlanta Airport Facilities Revenue, Series
A, 6.50%, 1/1/07......................... 1,104
1,500 Atlanta Airport Facilities, 6.50%,
1/1/08................................... 1,654
1,000 Atlanta Airport Facilities, 5.25%, 1/1/09,
Callable 1/1/07 @101..................... 964
1,215 Columbus Water & Sewer Revenue, 6.30%,
5/1/06, Callable 11/1/02 @102............ 1,301
2,000 State, GO, Series F, 6.50%, 12/1/01........ 2,177
---------
7,200
---------
Hawaii (0.5%):
1,000 Honolulu City & County, GO, Series A,
5.60%, 4/1/07, FSA....................... 1,029
---------
Idaho (2.4%):
1,050 Student Loan Fund Marketing Assoc. Inc.,
Student Loan Revenue, 6.25%, 4/1/98...... 1,055
2,250 Student Loan Fund Marketing Assoc. Inc.,
Student Loan Revenue, 6.40%, 10/1/99..... 2,271
705 Student Loan Fund Marketing Assoc. Inc.,
5.88%, 4/1/99............................ 706
1,300 University of Idaho, 5.75%, 4/1/06......... 1,355
---------
5,387
---------
Illinois (5.7%):
1,000 Chicago Metro Water Reclamation
District--Greater Chicago Capital
Improvements, GO, 7.25%, 12/1/12......... 1,180
3,245 Chicago Metro Water Reclamation
District--Greater Chicago Capital
Improvements, GO, 6.25%, 12/1/14......... 3,321
3,045 Chicago Park District GO, 6.35%, 11/15/08,
Callable 5/15/05 @102.................... 3,273
1,450 Chicago Residual Revenue, 0.00%, 10/1/09,
Callable 10/1/05 @78.60.................. 586
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Illinois, continued:
$ 1,140 Evanston Residential Mortgage, 6.38%,
1/1/09, Callable 7/1/02 @102............. $ 1,190
1,645 Health Facilities Authority Revenue, 6.13%,
11/15/07, Callable 11/15/04 @102......... 1,719
594 Health Facilities Authority Revenue, 7.90%,
8/15/03.................................. 608
1,000 State, GO, 6.25%, 12/1/01, Callable 12/1/96
@102..................................... 1,029
---------
12,906
---------
Indiana (4.5%):
1,000 Fort Wayne Hospital Authority, Parkview
Memorial Hospital Project, Series A,
7.50%, 11/15/11, Callable 11/15/99
@102..................................... 1,095
2,885 Indianapolis Economic Development Revenue,
6.38%, 12/1/04, AMT...................... 3,007
5,000 Rockport Pollution Control Revenue AEP-A,
3.55%, 7/1/25, AMBAC*.................... 5,000
1,000 State Vocational Technical College Building
Facilities Fee, 6.50%, 7/1/07, Callable
1/1/05 @102.............................. 1,096
---------
10,198
---------
Iowa (1.4%):
1,655 Finance Authority Single Family Mortgage,
Series F, 6.15%, 7/1/04, Callable 1/1/03
@103..................................... 1,689
1,500 Student Loan Liquidity Corp., Student Loan
Revenue, Series C, 6.50%, 12/1/99........ 1,573
---------
3,262
---------
Kansas (0.8%):
1,750 Wichita Hospital Revenue, 6.25%, 10/1/10,
Callable 10/1/02 @102.................... 1,813
---------
Louisiana (0.1%):
257 Housing Agency Mortgage Revenue, 7.80%,
12/1/09, Callable 6/1/04 @105............ 284
---------
Maryland (0.6%):
1,150 Anne Arundel County, GO, Series B, 7.70%,
3/15/06, AMT, Callable 3/15/99 @102...... 1,258
---------
Massachusetts (0.7%):
1,465 Worcester, GO, Series A, 6.10%, 5/1/08,
Callable 5/1/05 @102..................... 1,547
---------
Michigan (0.5%):
1,200 Detroit Convention Facilities, 5.10%,
9/30/04.................................. 1,198
---------
</TABLE>
CONTINUED
17----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
INTERMEDIATE TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Minnesota (2.7%):
$ 1,500 Detroit Lakes Health Care Facilities
Revenue, 6.00%, 2/15/12, Connie Lee,
Callable 2/15/03 @102.................... $ 1,510
1,500 Northern Municipal Power Agency Minnesota
Electric, Series A, 5.90%, 1/1/07,
Callable 1/1/03 @102..................... 1,563
2,500 State, GO, 5.50%, 5/1/05................... 2,579
400 University of Minnesota, 4.80%, 8/15/03.... 391
---------
6,043
---------
Missouri (2.3%):
1,895 Carthage Waterworks & Wastewater Treatment
Systems, 6.30%, 7/1/09, MBIA, Callable
7/1/04 @101**............................ 1,985
1,600 Kansas City Industrial Development
Authority, Multifamily Housing Revenue,
Series A, 5.63%, 7/1/05, AMT............. 1,615
1,615 State Enviornmental Improvement & Energy
Resource Authority, PCR, 5.25%, 12/1/07,
Callable 12/1/06 @101.................... 1,600
---------
5,200
---------
Nebraska (3.0%):
2,500 Educational Finance Authortiy, 5.60%,
1/1/07, Callable 1/1/06 @101............. 2,528
2,250 Higher Education Loan Program, Series A-6,
5.90%, 6/1/03, AMT....................... 2,271
2,000 Public Power District, 5.70%, 1/1/05,
Callable 1/1/03 @102**................... 2,073
---------
6,872
---------
Nevada (2.1%):
1,000 State Municipal Bond Bank Project No.
20-23-A, GO, 7.00%, 7/1/01, Callable
7/1/96 @102.............................. 1,054
500 State Municipal Bond Bank Project, GO,
5.00%, 11/1/06........................... 492
3,010 Washoe County School District, GO, 6.13%,
8/1/07, MBIA, Callable 8/1/02 @101....... 3,144
---------
4,690
---------
New Hampshire (0.6%):
1,225 Higher Education & Health Facilities
Authority Revenue, 6.25%, 1/1/06, Connie
Lee, Callable 7/1/04 @102................ 1,274
---------
New Mexico (4.5%):
1,000 Albuquerque, 6.50%, 7/1/11, Callable 7/1/00
@105**................................... 1,048
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Mexico, continued:
$ 1,195 Educational Assistance Foundation, Student
Loan Revenue, Series A, 6.45%, 4/1/99,
AMT...................................... $ 1,239
2,070 Educational Assistance Foundation, Student
Loan Revenue, Series A, 6.55%, 4/1/00,
AMT...................................... 2,158
5,455 Educational Assistance Foundation, Student
Loan Revenue, Series A, 6.85%, 4/1/05,
AMT...................................... 5,722
---------
10,167
---------
New York (0.7%):
1,500 State Medical Care Facilities Financial
Agency Revenue, 6.00%, 8/15/02........... 1,590
---------
Ohio (0.9%):
2,000 Cuyahoga County Hospital Revenue, Series
96B, 6.00%, 1/15/05...................... 2,109
---------
Oregon (5.1%):
850 Eugene Public Safety Facilities, GO, 6.00%,
6/1/05................................... 905
845 Eugene Public Safety Facilities, GO, 6.00%,
6/1/06................................... 898
2,350 Jackson County School District No. 5
Ashland, GO, 5.70%, 6/1/07............... 2,428
1,250 Lane County School District #52 Bethel, GO,
6.00%, 6/1/06............................ 1,328
1,000 Metro Open Spaces Program, GO, Series A,
5.00%, 9/1/04, Callable 9/1/03 @102...... 1,003
1,435 Port Portland Airport Revenue 6.75%,
7/1/09, Series 7-A, Callable 7/1/01
@101..................................... 1,542
1,250 State Department Administrative Services,
Series A, 5.25%, 5/1/08, Callable 5/1/06
@101**................................... 1,229
2,075 Washington County School District No 88,
GO, 6.10%, 6/1/05, FSA................... 2,216
---------
11,549
---------
Pennsylvania (4.6%):
3,500 Allegheny County, Series C-34, 0.00%,
2/15/02, MBIA............................ 3,619
1,600 Dauphin County Industrial Development
Authority, PCR, 6.00%, 1/1/08, MBIA...... 1,600
2,750 Indiana County Industrial Development
Authority, PCR, Series A, 6.00%, 6/1/06.. 2,906
2,350 Philadelphia Airport Revenue, Series A,
5.50%, 6/15/05, AMT...................... 2,376
---------
10,501
---------
</TABLE>
CONTINUED
- ----18
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
INTERMEDIATE TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Rhode Island (0.5%):
$ 1,000 Housing & Mortgage Finance Corp., Series
15-B, 6.20%, 10/1/06, MBIA, Callable
4/1/04 @102.............................. $ 1,027
---------
South Carolina (1.8%):
990 Hilton Head Island, GO, 5.40%, 8/1/08...... 991
1,045 Hilton Head Island, GO, 5.50%, 8/1/09...... 1,046
1,000 Piedmont Municipal Power Agency Electric
Revenue, Series A, 7.25%, 1/1/22......... 1,021
1,000 York County School District #3, GO, 5.40%,
3/1/08, Callable 3/1/06 @101**........... 1,001
---------
4,059
---------
South Dakota (1.2%):
925 Student Loan Assistance Corp., Series A,
8.00%, 8/1/98, Callable 8/1/97 @102...... 974
1,545 Student Loan Assistance Corp., Student Loan
Revenue, 7.63%, 8/1/06, AMT, Callable
8/1/99 @102.............................. 1,642
---------
2,616
---------
Tennessee (0.5%):
1,050 Chattanooga-Hamilton County Hospital
Authority, Hospital Revenue, 5.63%,
10/1/09, FSA............................. 1,058
---------
Texas (9.2%):
2,800 Austin Housing Finance Corp., Single Family
Mortgage Revenue, 0.00%, 12/1/11,
Callable 12/1/05 @71.20.................. 1,105
1,000 Austin Utility Systems Revenue, 0.00%,
5/15/08.................................. 511
5,000 Coastal Bend, 5.93%, 11/15/13*............. 4,956
2,000 Grand Prairie Health Facilities, 6.50%,
11/1/04.................................. 2,168
5,000 Harris County Capital Appreciation--Toll
Rd--Sub Lien--A, GO, 0.00%, 8/15/03...... 3,460
1,455 Health Facilities Development Corp.,
Hospital Revenue, 6.25%, 8/15/12,
Callable 8/15/03 @102.................... 1,509
4,925 Hurst Euless Bedford Independent School
District, GO, 0.00%, 8/15/09............. 2,316
1,185 Housing Agency Residential Development
Revenue, Series D, 8.40%, 1/1/21, AMT,
Callable 7/1/99 @102..................... 1,244
1,500 Panhandle--Plains Higher Education, 5.55%,
3/1/05................................... 1,473
1,000 Municipal Power Agency Revenue, 6.10%,
9/1/08................................... 1,065
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
$ 1,000 San Antonio Electric & Gas, Series B,
7.00%, 2/1/09, FSA, Callable 2/1/99
@101.5................................... $ 1,063
---------
20,870
---------
Utah (2.4%):
2,000 Intermountain Power Agency Power Supply
Revenue, Series B, 6.50%, 7/1/09......... 2,182
1,900 State Housing Finance Agency, 6.35%,
7/1/12, AMT, Callable 1/1/05 @102........ 1,912
1,250 State Municipal Finance Corp., Local
Government Revenue, 7.05%, 3/1/05, FSA,
Callable 3/1/01 @100..................... 1,336
---------
5,430
---------
Vermont (0.4%):
1,000 University of Vermont & State Agricultural
College, Series 1973A, 5.80%, 7/1/13,
Callable 7/1/96 @101..................... 994
---------
Virginia (2.0%):
1,000 State Housing Development Authority
Commonwealth Management, Series
C--Subseries C-9--RMK, 5.85%, 7/1/04,
Callable 1/1/02 @102*.................... 1,017
2,000 State Housing Development Authority
Commonwealth Mortgage, Series A, 6.80%,
7/1/06, AMT, Callable 1/1/06 @102........ 2,114
1,340 State Housing Development Authority
Commonwealth Mortgage, Series J, 6.65%,
7/1/10, Callable 1/1/05 @102............. 1,397
---------
4,528
---------
Washington (4.7%):
1,500 Clark County School District No. 114
Evergreen, GO, 6.00%, 12/1/07............ 1,585
1,360 King County School District #400, GO,
6.50%, 12/1/08........................... 1,475
3,000 Snohomish County Public Utility District
No. 1, Electric Revenue, 6.00%, 1/1/13,
Callable 1/1/03 @102..................... 3,032
1,000 State Public Power Supply System Nuclear
Project #2 Revenue, Series A, 5.70%,
7/1/02................................... 1,009
2,150 State Public Power Supply System Nuclear
Project #3 Revenue, Series B, 7.00%,
7/1/05................................... 2,326
1,200 State Nuclear Power Project #3, Series B,
5.60%, 7/1/07, MBIA...................... 1,204
---------
10,631
---------
</TABLE>
CONTINUED
19----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
INTERMEDIATE TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
West Virginia (2.4%):
$ 5,000 Kanawha-Putnam County, 0.00%, 12/1/16...... $ 1,434
2,600 Parkersburg Waterworks & Sewage System
Revenue, 4.85%, 3/1/03................... 2,603
260 Parkersburg Waterworks & Sewage System
Revenue, 5.10%, 3/1/06................... 259
1,000 State Housing Development, Series B, 7.20%,
11/1/20, AMT, Callable 5/1/02 @102**..... 1,046
---------
5,342
---------
Wisconsin (0.2%):
1,500 Center District Tax Revenue Capital
Appreciation, Senior Dedicated, Series A,
0.00%, 12/15/18.......................... 394
---------
Wyoming (3.3%):
1,395 Sweetwater County School District No. 2,
Green River, GO, 7.00%, 6/1/04........... 1,567
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Wyoming, continued:
$ 2,230 Uinta County School District No. 1, Series
A, 6.88%, 6/1/02......................... $ 2,408
790 University of Wyoming, University Revenues,
7.10%, 6/1/10, Callable 6/1/00 @101...... 864
2,600 Student Loan Corp., Student Loan Revenue,
4.10%, 1/30/96, AMT, GSL*................ 2,600
---------
7,439
---------
Total Municipal Bonds 230,103
---------
INVESTMENT COMPANIES (0.2%):
472 Provident Municash Tax-Free Money Market
Fund..................................... 472
---------
Total Investment Companies 472
---------
Total (Cost--$227,749) (a) $ 230,575
---------
---------
</TABLE>
- ------------
Percentages indicated are based on net assets of $226,262.
<TABLE>
<C> <S>
(a) Represents cost for financial reporting purposes and differs from cost for federal income tax purposes by the amount of
losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $19. Cost
for federal income tax purposes differs from value by net unrealized appreciation of securities as follows (amounts in
thousands):
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation..................................................... $ 3,404
Unrealized depreciation..................................................... (597)
---------
Net unrealized appreciation................................................. $ 2,807
---------
---------
</TABLE>
<TABLE>
<S> <C>
Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
* effect at June 30, 1996.
** Additional put and demand features exist allowing the Fund to require the repurchase of the instrument within variable
time periods at variable amounts.
AMBAC Insured by AMBAC Indemnity Corporation
AMT Alternative Minimum Tax Paper
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
GO General Obligation
GSL Guaranteed Student Loans
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----20
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS (71.0%):
Alaska (2.4%):
$ 1,500 Home Mortgage Revenue Refunding, 8.00%,
3/1/09, Callable 12/1/00 @102............ $ 1,614
290 Juneau City & Boro Home Mortgage Revenue,
8.00%, 2/1/09............................ 312
5,000 North Slope Boro, GO, Series A, 0.00%,
6/30/04.................................. 3,287
1,325 North Slope Boro, GO, Series A, 0.00%,
6/30/05.................................. 819
1,000 State Housing Finance Corp., Insured
Mortgage Program 1st Series, 7.65%,
12/1/10.................................. 1,023
30 State Housing Finance Corp., Revenue, Local
Guaranteed Housing, 8.20%, 12/1/97....... 31
---------
7,086
---------
Arizona (1.0%):
1,210 Maricopa County, Industrial Development,
Multi-Family Housing Revenue, Series A,
6.25%, 7/1/06............................ 1,204
1,800 Maricopa County, PCR, 5/1/29, LOC: Bank of
America*................................. 1,800
---------
3,004
---------
Arkansas (3.6%):
427 Drew County, Public Facilities Board,
7.90%, 8/1/11, Callable 8/1/03 @103...... 456
185 Drew County, Public Facilities Board,
7.75%, 8/1/11, Callable 2/1/04 @100...... 196
633 Jacksonville, Residential Housing
Facilities Board, Single Family Mortgage
Revenue, 7.90%, 1/1/11, Callable 7/1/03
@103..................................... 688
298 Jacksonville, Residential Housing
Facilities Board, Single Family Mortgage
Revenue, 7.75%, 1/1/11, Callable 7/1/05
@103..................................... 317
1,000 Jefferson County, PCR, Power & Light Co.
Project 6.13%, 10/1/07, Callable 4/1/06
@100..................................... 1,001
334 Lonoke County, Residential Housing
Facilities Board, Single Family Mortgage
Revenue, 7.38%, 4/1/11, Callable 4/1/03
@103..................................... 355
743 Lonoke County, Residential Housing
Facilities Board, Single Family Mortgage
Revenue, 7.90%, 4/1/11, Series A-2,
FNMA..................................... 799
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arkansas, continued:
$ 1,560 Pope County, Residential Facilities Housing
Board Mortgage Revenue, 7.75%, 9/1/11,
Series B, Callable 8/1/02 @102........... $ 1,667
2,550 State Development Authority Revenue
Refunding, 8.00%, 8/15/11, FHA, Callable
8/15/01 @103............................. 2,743
3,650 State Development Finance Authority
Revenue, 0.00%, 12/1/11.................. 1,167
110 State Development Finance Authority
Revenue, State Single Family Housing,
7.70%, 12/1/14, Callable 6/1/97 @102..... 114
584 Stuttgart Public Facilities Board Revenue,
7.90%, 9/1/11, Series A-2, Callable
9/1/03 @103.............................. 635
293 Stuttgart Public Facilities Board Revenue,
7.75%, 9/1/11, Series B, Callable 3/1/06
@103..................................... 314
---------
10,452
---------
California (1.9%):
1,255 Fairfield Water, Revenue Capital
Appreciation, 0.00%, 4/1/15, Callable
4/1/05 @56.75............................ 385
680 Housing Finance Agency, Revenue Local or
Guaranteed Housing, 8.63%, 8/1/15, series
B, Callable 8/1/00 @100.................. 704
1,000 Housing Finance Agency, Revenue State
Single Family Housing, 7.88%, 8/1/19,
Series F, Callable 8/1/98 @102........... 1,045
975 Redondo Beach, Redevelopment Agency,
Residential Mortgage Revenue, 6.25%,
6/1/11, Series B, Callable 6/1/03 @100... 979
2,135 Sacramento Municipal Utility District,
Electric Revenue, Series P, 6.00%,
7/1/15, Callable 7/1/96 @100............. 2,125
1,000 Southern, Public Power Authority,
Transmission Project, Revenue Capital
Appreciation, 0.00%, 7/1/15, MBIA........ 322
---------
5,560
---------
Colorado (11.8%):
1,000 Aurora Single Family Mortgage Revenue,
0.00%, 9/1/15............................ 278
1,000 Aurora Golf Course, Saddle Rock Project,
5.70%, 12/1/05........................... 981
2,430 Brush Creek Metropolitan District, GO,
Refunding, 6.70%, 11/15/09, Callable
11/15/03 @101............................ 2,550
</TABLE>
CONTINUED
21----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Colorado, continued:
$ 1,410 Central City Water Revenue, GO, Water
Utility Improvements, 7.40%, 12/1/07,
Callable 12/1/02 @100.................... $ 1,595
655 Central City Water Revenue, GO, Water
Utility Improvements, 7.50%, 12/1/12,
Callable 12/1/02 @100.................... 744
400 Central City Water Revenue, Water Utility
Improvements, 8.63%, 9/15/11, Callable
9/15/02 @100............................. 417
1,250 Eagle's Nest Metropolitan District, GO,
Refunding, 6.50%, 11/15/17............... 1,258
291 El Paso County Home Mortgage, Series C,
8.30%, 9/20/18........................... 312
1,080 El Paso County Single Family Mortgage
Revenue, 0.00%, 9/1/15................... 337
1,445 Englewood Multi-Family Housing Mark
Apartment Revenue, Series B, 6.00%,
12/15/18, LOC: Citibank, Callable
12/15/03 @100............................ 1,386
585 Housing Finance Authority, Capital
Appreciation Single Family Revenue, 1985
Series A, 0.00%, 9/1/14.................. 84
355 Housing Finance Authority, GO, Refunding,
Series A, 6.90%, 5/1/01.................. 375
2,660 Housing Finance Authority, Multi-Family
Insured Mortgage Revenue, 6.00%,
10/1/25.................................. 1,970
875 Housing Finance Authority, Multi-Family
Insured Mortgage Revenue, 9.00%,
10/1/25.................................. 881
1,725 Housing Finance Authority, Revenue
Refunding, Series A, 6.80%, 8/1/14,
Callable 8/1/02 @102..................... 1,783
705 Housing Finance Authority, Single Family
Program, Series D, 5.75%, 12/1/03........ 703
995 Housing Finance Authority, Single Family
Program, Series B, 6.13%, 5/1/13,
Callable 11/1/04 @103.................... 1,005
750 Housing Finance Authority, Single Family
Program, Series D-2, 7.10%, 6/1/14....... 808
1,740 Housing Finance Authority, Single Family
Program, Series B-2, 7.50%, 12/1/16,
Callable 6/1/05 @105..................... 1,923
1,000 Housing Finance Authority, Single Family
Program, Series C-2, 7.45%, 6/1/17,
Callable 6/1/05 @105..................... 1,100
520 Housing Finance Authority, Single Family
Program, Series D-1, 6.60%, 8/1/17,
Callable 8/1/01 @102..................... 524
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 275 Housing Finance Authority, Single Family
Program, Series B-2, 6.90%, 8/1/17,
Callable 2/1/01 @102..................... $ 284
930 Housing Finance Authority, Single Family
Program, Series B, 7.50%, 11/1/24,
Callable 11/1/04 @105.................... 1,025
1,435 Jefferson County Single Family Revenue
Refunding, 8.88%, 10/1/13, Callable
4/1/01 @103.............................. 1,538
4,525 Meridian Metropolitan District, GO, 7.50%,
12/1/11, Callable 12/1/01 @101........... 4,894
1,500 Mesa County Residual Revenue Refunding,
0.00%, 12/1/11........................... 602
400 Mountain Village Metropolitan District, San
Miguel County, 7.95%, 12/1/03, GO,
Callable 12/1/02 @101.................... 440
1,980 Mountain Village Metropolitan District, San
Miguel County, 8.10%, 12/1/11, GO,
Callable 12/1/02 @101.................... 2,201
500 Telluride Housing Authority Housing
Revenue, Shandoka Apartments Project,
7.50%, 6/1/12, Callable 6/1/02 @101...... 524
1,500 Telluride Housing Authority Housing Revenue
Shandoka Apartments Project, 7.50%,
6/1/23, Callable 6/1/03 @101............. 1,566
---------
34,088
---------
Connecticut (0.6%):
1,620 State Housing Mortgage, Series A, 7.63%,
11/15/17, Callable 11/15/96 @103**....... 1,676
---------
Delaware (0.1%):
1,270 New Castle County, Single Family Mortgage
Revenue, 0.00%, 11/1/16.................. 168
---------
Florida (3.6%):
35 Duval County Housing Finance Authority,
Single Family Mortgage Revenue, GNMA,
Series C, 7.30%, 9/1/15, Callable 9/1/00
@103..................................... 36
3,650 Duval County Housing Finance Authority,
Single Family Mortgage Revenue, GNMA,
7.35%, 7/1/24, Callable 1/1/03 @103...... 3,837
1,000 Halifax Hospital Medical Center, Series A,
10/1/19*................................. 1,000
580 Housing Finance Agency, Home Ownership
Revenue, GNMA, 7.50%, 9/1/14, Callable
9/1/00 @102.............................. 612
</TABLE>
CONTINUED
- ----22
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Florida, continued:
$ 8,645 Plantation Water & Sewer, 0.00%, 3/1/07.... $ 4,740
---------
10,225
---------
Georgia (0.9%):
2,500 Cobb County Housing Authority Pass thru
Certificates, Signature Series B, 9.00%,
10/1/10.................................. 2,562
---------
Idaho (1.0%):
3,000 Health Facility Authority Revenue, St.
Lukes Regional Medical Center Project,
5/1/22, LOC: Credit Suisse*.............. 3,000
---------
Illinois (3.1%):
5,890 Addison Alton Electric Public Improvements
Revenue, 0.00%, 7/1/11, Callable 7/1/04
@62.04................................... 2,235
4,595 Bolingbrook Mortgage Revenue, Capital
Appreciation, Sub Series 1, 0.00%,
1/1/11................................... 1,596
920 Danville Single Family Mortgage Revenue
Refunding, 7.30%, 11/1/10, Callable
11/1/03 @102............................. 957
3,530 Freeport Single Family Mortgage Revenue
0.00%, 8/1/10, Callable 10/1/01 @48.96... 1,143
4,685 Moline Mortgage Revenue Capital
Appreciation, Sub Series 1, 0.00%,
5/1/02................................... 1,629
645 Quincy Single Family Mortgage Revenue,
Refunding, 6.88%, 3/1/10, Callable 3/1/04
@102..................................... 675
585 Rock Island Residential Mortgage Revenue
Refunding, 7.70%, 9/1/08, Callable 9/1/02
@102..................................... 622
---------
8,857
---------
Indiana (1.4%):
2,250 Marion County Hospital Authority Revenue,
6.50%, 9/1/13, Callable 9/1/99 @102...... 2,349
1,720 State Toll Finance Authority, Toll Road
Revenue, 6.00%, 7/1/15, Callable 7/1/97
@100..................................... 1,720
---------
4,069
---------
Iowa (1.4%):
650 Davenport Home Ownership Mortgage Revenue
Refunding, 7.90%, 3/1/10, Callable 9/1/04
@102..................................... 686
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Iowa, continued:
$ 2,535 Finance Authority, Single Family Revenue
Mortgage Backed Securities Program,
Series C, 6.40%, 7/1/19, Callable 1/1/05
@102..................................... $ 2,574
925 Salix, PCR, Gas & Electric Project, 5.75%
6/1/03................................... 930
---------
4,190
---------
Kansas (3.0%):
800 Ford County, Single Family Mortgage
Revenue, 7.90%, 8/1/10................... 860
2,250 Johnson County, Single Family Mortgage
Revenue, 7.10%, 5/1/12................... 2,410
640 Labette County, Single Family Mortgage
Revenue, 8.40%, 12/1/11.................. 678
615 Reno County, Mortgage Revenue, 8.70%,
9/1/11................................... 646
2,400 Reno & Labette County, Single Family
Revenue, 0.00%, 12/1/15.................. 739
465 Sedwick & Shawnee County, Single Family
Revenue, 7.80%, 5/1/14................... 507
450 Sedwick & Shawnee County, Single Family
Revenue, 8.05%, 5/1/14................... 493
470 Sedwick & Shawnee County, Single Family
Revenue, 7.80%, 11/1/24.................. 518
950 Sedwick County, Single Family Revenue,
8.20%, 5/1/14............................ 1,058
750 Wichita, Single Family Mortgage Revenue,
7.10%, 9/1/09............................ 776
---------
8,685
---------
Kentucky (0.7%):
1,930 Meade County, PCR, Olin Corp. Project,
6.00%, 7/1/07, Callable 7/1/96 @100...... 1,920
---------
Louisiana (1.7%):
900 Calcasieu Parish Public Transportation
Authority, 0.00%, 5/1/13................. 277
1,010 Iberia Home Mortgage Authority, 7.38%,
1/1/11................................... 1,075
1,731 Public Facilities Authority, 8.45%,
12/1/12.................................. 1,826
108 Public Facilities Authority, 7.50%,
10/1/15.................................. 114
5,335 Public Facilities Authority, 0.00%,
12/1/19.................................. 1,262
279 St. Mary, Public Finance Authority, 7.63%,
3/25/12.................................. 301
---------
4,855
---------
Maine (0.5%):
1,500 Skowhegan, PCR, Scott Paper Co. Project,
5.90%, 11/1/13........................... 1,523
---------
</TABLE>
CONTINUED
23----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Massachusetts (0.7%):
$ 1,920 State Port Authority Revenue, 7.13%,
7/1/12, Callable 7/1/96 @100.5**......... $ 1,934
---------
Michigan (2.2%):
2,000 Farmington Hills Economic Development
Corp., 2/15/96*.......................... 2,000
2,000 State Hospital Finance Authority Revenue,
Mercy Mount Clemens Corp., 6.25%,
5/15/11, Callable 5/15/01 @102........... 2,037
1,395 State Housing Development Authority, 7.50%,
6/1/15................................... 1,468
880 State Housing Development Authority, 7.70%,
12/1/16.................................. 913
---------
6,418
---------
Minnesota (0.3%):
2,950 Minneapolis Mortgage Revenue, 0.00%,
10/1/12.................................. 975
---------
Missouri (1.5%):
1,425 Carthage Waterworks & Wastewater, Series B,
6.50%, 7/1/16, Callable 7/1/04 @101**.... 1,460
665 Grandview Industrial Development Authority,
9.25%, 5/15/08........................... 648
2,295 Jackson County Industrial Development
Authority, 10.00%, 3/1/10................ 2,309
---------
4,417
---------
Montana (0.9%):
1,562 Green Plaza Housing Inc., 10.43%, 1/1/22... 1,624
1,000 State Board Housing Revenue, 6.40%,
12/1/12.................................. 1,021
---------
2,645
---------
Nebraska (0.3%):
4,545 Finance Authority, Single Family Revenue,
0.00%, 12/15/13.......................... 775
---------
Nevada (0.1%):
430 Housing Division, 6.20%, 10/1/15........... 433
---------
New Jersey (0.6%):
710 State Housing & Mortgage Finance Agency,
8.38%, 4/1/17............................ 747
935 State Housing & Mortgage Finance Agency,
7.38%, 10/1/17........................... 982
---------
1,729
---------
New Mexico (1.6%):
540 Bernalillo County, 7.00%, 11/1/08.......... 534
445 Hobbs, Single Family Mortgage Revenue
Refunding, 8.75%, 7/1/11................. 479
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Mexico, continued:
$ 180 Las Cruces Housing Development Corp.,
Multifamily Revenue Refund Mortgage,
Sub-Series B, 9.00%, 10/1/03............. $ 183
1,140 Las Cruces Housing Development Corp.,
Multi-Family Revenue Refunding, Series A,
6.40%, 10/1/19........................... 1,132
430 Mortgage Financial Authority Refunding,
Single Family Mortgage, Series A-2,
6.85%, 7/1/12............................ 448
1,845 Mortgage Finance Authority Revenue
Refunding 6.90%, 7/1/24, Callable 7/1/02
@102..................................... 1,913
---------
4,689
---------
North Carolina (2.1%):
515 East Power Agency, Series E, 6.50%, 1/1/24,
AMBAC, Callable 1/1/97 @100.............. 515
5,350 Municipal Power Agency No. 1, Catawba
Electric Revenue, Series B, 6.00%,
1/1/20................................... 5,245
475 Municipal Power Agency, Series B, 6.00%,
1/1/20, Callable 1/1/97 @100............. 475
---------
6,235
---------
Ohio (0.8%):
960 Housing Financial Agency, Single Family
Mortgage Revenue, GNMA, Series D, 7.00%,
9/1/11, Callable 9/1/01 @100............. 1,012
1,100 Housing Financial Agency, Single Family
Mortgage, Series D, 7.05%, 9/1/16........ 1,157
---------
2,169
---------
Oregon (0.1%):
350 Eugene Trojan Nuclear Project Revenue,
5.90%, 9/1/09, Callable 9/1/96 @100...... 350
---------
Pennsylvania (1.6%):
2,000 Greene County Industrial Development
Authority, PCR, 6.10%, 2/1/07, Callable
2/1/97 @100.............................. 2,003
2,515 Pittsburgh Urban Redevelopment Authority
Mortgage Revenue, Series A, 8.35%,
10/1/14.................................. 2,643
---------
4,646
---------
South Carolina (2.2%):
2,185 Piedmont Municipal Power Agency, Electric
Revenue Refunding, Series A, 7.25%,
1/1/22, Callable 1/1/98 @100............. 2,232
2,250 State Electric Expansion System, 5.88%,
7/1/18, Callable 7/1/96 @100............. 2,238
</TABLE>
CONTINUED
- ----24
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
South Carolina, continued:
$ 2,000 State Housing Authority, Single Family
Mortgage Purchase, 7.00%, 7/1/11......... $ 2,035
---------
6,505
---------
South Dakota (2.7%):
5,240 Health & Educational Facility Authority
Revenue, St. Lukes Midland Regional
Medical, 6.63%, 7/1/11, Callable 7/1/01
@102..................................... 5,606
2,000 Student Loan Assistance, 7.63%, 8/1/06,
Callable 08/01/99 @102**................. 2,117
---------
7,723
---------
Tennessee (1.2%):
995 Housing Development Agency Homeownership
Program, Series P, 7.70%, 7/1/16......... 1,041
665 La Follette Housing Development Corp., FHA,
Series A, 6.25%, 1/1/16, MBIA............ 668
380 La Follette Housing Development Corp., FHA
, Series A, 6.38%, 1/1/20, MBIA.......... 379
1,295 Memphis Health, Educational & Housing
Refunding Multi-Family, 7.38%, 1/20/27... 1,365
---------
3,453
---------
Texas (9.6%):
1,385 Beaumont Housing Finance Corporation
Refunding, 9.20%, 3/1/12................. 1,500
1,765 Bexar County Housing Finance Corp.,
Residual Revenue Capital Appreciation,
0.00%, 3/1/15, GO, Callable 9/1/03
@49.36................................... 542
2,500 Central Housing Finance Corp., Single
Family Mortgage Revenue, 0.00%, 9/1/16... 725
5,055 Dallas County Housing Mortgage Revenue,
0.00%, 1/1/17............................ 680
4,000 Dallas -- Fort Worth Regulation Airport
Revenue, 6.10%, 11/1/07.................. 4,000
725 El Paso Housing Finance Corporation,
Mortgage Refunding Single Family, Series
A, 8.75%, 10/1/11........................ 782
2,755 Fort Worth Housing Finance Corporation
Refunding, 8.50%, 10/1/11................ 2,973
1,685 Galveston Property Finance Authority
Income, Single Family Mortgage Revenue,
Series A, 8.50%, 9/1/11, Callable 9/1/01
@103..................................... 1,819
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
$ 600 North Higher Education Authority, Student
Loan Revenue, Series D, AMBAC, 6.88%,
4/1/02, Callable 4/1/00 @102............. $ 629
800 Red River Authority, PCR, 6.63%, 3/1/09.... 802
4,000 Sabine River Authority, PCR, 8.20%, 7/1/14,
Callable 7/1/96 @102**................... 4,091
2,000 San Antonio Hotel Occupancy Revenue, 0.00%,
8/15/17.................................. 558
485 San Antonio Housing Corp., 2nd Mortgage,
American Foundation Housing, Series B,
9.50%, 12/1/05, Callable 6/1/04 @102..... 478
2,530 Socorro Independent School District, 0.00%,
9/1/11, GO............................... 1,035
1,555 Southeast Housing Finance Corp. Residual
Revenue Capital Appreciation, Series A,
0.00%, 11/1/14........................... 491
15,810 State Department of Housing & Community
Affairs, Single Family Revenue Capital
Appreciation, Refunding Mortgage, Jr.
Lien, Series A, 0.00%, 3/1/15............ 4,483
1,950 Travis County Housing Finance Corp., Single
Family Mortgage Revenue Refunding, GNMA &
FNMA, Series A, 6.25%, 4/1/19............ 1,993
220 Travis County Housing Finance Corp.,
Residential Mortgage Revenue, GNMA &
FNMA, Series A, 7.00%, 12/1/11........... 230
---------
27,811
---------
Utah (1.3%):
1,200 Salt Lake County, PCR Revenue, Service
Station Holdings Project, 2/1/08 3.60%*.. 1,200
2,340 State Housing Finance Authority, Single
Family Mortgage, 5.88%, 7/1/08........... 2,364
310 State Housing Finance Agency, Single Family
Mortgage, Series A-1, 6.90%, 7/1/12...... 323
---------
3,887
---------
Virginia (0.3%):
770 Virginia Beach Development Authority,
Multi-Family Housing Revenue, 2nd
Mortgage, Series B, 8.75%, 1/15/08....... 753
---------
</TABLE>
CONTINUED
25----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Washington (0.1%):
$ 403 Skagit County Housing Authority, Low Income
Housing Assistance Revenue, GNMA, Sea Mar
Project, 7.00%, 6/20/03.................. $ 428
---------
West Virginia (0.4%):
230 Parkersburg Waterworks & Sewers, 5.10%,
9/1/06................................... 229
800 State Housing Development Fund Revenue,
6.13%, 7/1/13, Callable 7/1/97 @100...... 806
---------
1,035
---------
Wisconsin (1.1%):
2,700 Center District Tax Revenue Capital
Appreciation, Senior Dedicated, Series A,
0.00%, 12/15/18.......................... 709
2,450 State, Series A, 7.50%, 1/1/15, Callable
1/1/97 @101.5**.......................... 2,506
---------
3,215
---------
Wyoming (0.6%):
180 Community Development Authority, Single
Family Mortgage, Series A, FHA, 6.88%,
6/1/14, Callable 6/1/01 @102............. 182
1,550 Student Loan Corp. Revenue, 12/1/05*....... 1,550
---------
1,732
---------
Total Municipal Bonds 205,877
---------
ALTERNATIVE MINIMUM TAX PAPER (29.5%):
Arkansas (0.3%):
965 State Development Finance Authority
Revenue, State Single Family Housing,
7.75%, 4/1/21, Callable 4/1/99 @102...... 1,005
---------
California (2.0%):
65 Housing Finance Agency Revenue, State
Single Family Housing, Series C, 7.45%,
8/1/11................................... 68
1,330 Housing Finance Mortgages, Series F, 7.50%,
2/1/23, Callable 8/1/05 @102**........... 1,448
350 Rural Home Mortgage Finance Authority,
Single Family Mortgage Revenue, 7.25%,
12/1/24, Callable 12/1/04 @103........... 366
1,685 Rural Home Mortgage Financing Authority,
5.30%, 11/1/05........................... 1,682
1,000 Rural Home Mortgage Financing Authority,
7.55%, 11/1/26........................... 1,101
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
California, continued:
$ 1,000 Rural Home Mortgage Financing Authority,
6.45%, 5/1/27............................ $ 1,096
---------
5,761
---------
Colorado (3.2%):
1,000 Denver City & County Airport, Series C,
6.75%, 11/15/13, Callable 11/15/07 @
100**.................................... 1,060
2,500 Denver City & County Airport Revenue,
5.63%, 11/15/08, Callable 11/15/06
@102**................................... 2,466
485 Housing Finance Authority, Single Family
Program, Sub Series A, 6.50%, 12/1/02.... 494
880 Housing Finance Authority, Single Family
Program, Series E, 6.25%, 12/1/09,
Callable 12/1/04 @103.................... 892
1,000 Housing Finance Authority, Single Family
Program, Series B-1, 7.90%, 12/1/25,
Callable 6/1/05 @105..................... 1,110
3,000 Housing Financing Authority, Single Family
Program, Series A-1, 7.40%, 11/1/27,
Callable 5/1/96 @105**................... 3,237
---------
9,259
---------
Florida (4.9%):
1,250 Brevard County Housing Finance Authority,
Family Mortgage Revenue, 6.13%, 9/1/09,
Callable 9/1/04 @102..................... 1,259
1,000 Leon County Housing Finance Authority,
Multi-County Progress, Series B, 7.30%,
1/1/28................................... 1,083
880 Manatee County Housing Finance Authority
Mortgage Revenue, Sub Series 1, 8.38%,
5/1/25................................... 968
3,145 Manatee County Housing Finance Authority
Mortgage Revenue, 6.88%, 11/1/26,
Callable 5/1/06 @105**................... 3,374
1,405 Palm Beach County Housing Finance
Authority, Single Family Mortgage
Revenue, Series A, 6.38%, 10/1/06,
Callable 10/1/04 @102.................... 1,423
1,205 Pinellas County Housing Finance Authority,
Single Family Mortgage Revenue, 6.25%,
8/1/12, Callable 2/1/05 @102............. 1,215
1,000 Pinellas County Housing Finance Authority,
Single Family Mortgage Revenue,
Multi-County Series A, 6.35%, 2/1/17,
Callable 2/1/05 @102..................... 1,018
</TABLE>
CONTINUED
- ----26
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
<C> <S> <C>
Florida, continued:
$ 1,500 Pinellas County Housing Finance Authority,
Single Family Mortgage Revenue, Series A,
5.00%, 10/1/25, Callable 4/1/06 @102**... $ 1,462
2,370 Polk County Housing Finance Authority,
Series A, 7.88%, 9/1/22, Callable 3/1/00
@103..................................... 2,514
---------
14,316
---------
Georgia (0.4%):
1,010 De Kalb County Housing Authority Revenue,
State Single Family Housing, 7.65%,
6/1/18, Callable 6/1/04 @100............. 1,056
---------
Illinois (2.2%):
355 Aurora, Single Family Mortgage Revenue
Refunding, Series B, 8.05%, 9/1/25....... 390
215 Aurora Kane & Du Page Counties, Single
Family Revenue Mortgage, Series A, 7.95%,
10/1/25.................................. 232
3,455 Chicago, Single Family Mortgage Revenue,
Series A, 7.00%, 9/1/27, Callable 3/1/06
@105**................................... 3,752
1,500 Chicago, Single Family Mortgage, Series B,
7.63%, 9/1/27, Callable 6/15/06 @105**... 1,645
245 Housing Development Authority, Resident
Mortgage Revenue, Series A, 7.35%,
8/1/10, Callable 8/1/01 @102............. 254
---------
6,273
---------
Indiana (0.4%):
1,000 State Housing Financing Authority, Series
A-2, 6.45%, 7/1/14, Callable 7/1/05
@102..................................... 1,020
---------
Iowa (0.3%):
715 Finance Authority, Single Family Revenue,
GNMA, 7.90%, 11/1/22, Callable 11/1/99
@102..................................... 750
---------
Kentucky (0.8%):
2,160 Sedgwick County, GNMA, Series B, 7.80%,
6/1/22, Callable 6/1/00 @103............. 2,264
---------
Maine (0.1%):
300 State Housing Authority, 6.90%, 11/15/01... 312
---------
Massachusetts (0.5%):
335 State Housing Finance Agency, 7.00%,
12/1/23.................................. 340
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
Massachusetts, continued:
$ 985 State Housing Finance Agency, 7.13%,
6/1/25................................... $ 1,024
---------
1,364
---------
Michigan (0.2%):
645 State Housing Development Authority, 7.65%,
12/1/12.................................. 679
---------
Mississippi (2.0%):
960 Higher Education, 6.05%, 9/1/07............ 978
755 Home Corp., Single Family Revenue, 7.10%,
12/1/10.................................. 769
2,000 Home Corp., Single Family Revenue, 7.90%,
3/1/25................................... 2,204
1,635 Housing Finance Corp., GNMA, 8.25%,
10/15/18................................. 1,716
---------
5,667
---------
Missouri (1.6%):
910 State Housing Development, Common Mortgage
Revenue, Single Family Homeowner, 7.25%,
9/1/26, Callable 3/1/06 @105............. 984
2,000 State Housing Development, Common Mortgage
Revenue, Single Family Homeowner, Series
A ,7.20%, 9/1/26, Callable 9/1/06
@105**................................... 2,153
1,415 State Housing Development, 7.38%, 8/1/23... 1,492
---------
4,629
---------
Nebraska (0.1%):
260 Finance Authority, Single Family Revenue,
6.35%, 3/15/06........................... 266
---------
Nevada (0.3%):
845 Housing Division, Single Family, Series B2,
7.90%, 10/1/21, Callable 4/1/00 @102..... 881
---------
New Jersey (0.2%):
615 State Higher Education Authority, 7.00%,
7/1/05................................... 626
---------
New Mexico (0.5%):
310 Mortgage Financial Authority, Single Family
Mortgage, Series A, 7.80%, 3/1/21........ 322
1,000 Mortgage Financial Authority, Single Family
Mortgage, Series H, 6.45%, 7/1/25........ 1,010
---------
1,332
---------
</TABLE>
CONTINUED
27----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
<C> <S> <C>
New York (0.5%):
$ 1,395 State Mortgage Agency Revenue, Homeowner
Mortgage, Series UU, 7.75%, 10/1/23...... $ 1,466
---------
North Carolina (0.7%):
1,835 Housing Finance Authority Agency, Series O,
7.60%, 3/1/21, Callable 1/1/98 @101**.... 1,936
---------
North Dakota (0.7%):
1,375 State Housing Financial Agency, Single
Family Mortgage Revenue, Series A, 8.38%,
7/1/21................................... 1,450
300 Student Loan, Series D, 5.95%, 7/1/07,
Callable 7/1/06 @100..................... 300
300 Student Loan, Series D, 6.15%, 7/1/09,
Callable 7/1/06 @100..................... 301
---------
2,051
---------
Ohio (0.6%):
1,655 Housing Financial Agency, Single Family
Mortgage Revenue, GNMA, Series A, 7.65%,
3/1/29................................... 1,737
---------
Oklahoma (2.1%):
2,730 Housing Finance Authority, Single Family
Revenue Mortgage, Series A, 7.05%,
9/1/26, Callable 9/1/06 @105............. 2,919
3,000 Housing Mortgage Agency, Series B-2, 7.63%,
9/1/26, Callable 3/1/06 @105**........... 3,243
---------
6,162
---------
Pennsylvania (0.7%):
1,280 Housing Finance Authority, Single Family
Mortgage, Series 47, 6.75%, 10/1/08...... 1,388
740 Pittsburgh Urban Redevelopment Authority,
GNMA, Series C, 7.88%, 12/1/16........... 780
---------
2,168
---------
Rhode Island (0.3%):
780 Housing & Mortgage Financial Corp.,
Homeownership Opportunity, Series C-1,
6.80%, 10/1/23........................... 792
---------
South Dakota (0.8%):
400 Housing Development Authority, Homeowner
Mortgage, Series D-1, 6.80%, 5/1/12...... 415
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
South Dakota, continued:
$ 1,830 Student Loan Assistance Corp. Student Loan
Revenue, 7.63%, 8/1/06, Callable 8/1/99
@102..................................... $ 1,945
---------
2,360
---------
Tennessee (0.5%):
1,370 Housing Development Agency, Homeownership
Program, Issue V, 7.65%, 7/1/22.......... 1,435
---------
Texas (2.1%):
795 El Paso Housing Finance Corp. Mortgage
GNMA, Single Family Mortgage Revenue,
7.75%, 9/1/19............................ 830
1,000 Laredo Housing Finance Corp., Single Family
Mortgage Revenue, GNMA & FNMA, 6.20%,
10/1/19.................................. 1,008
970 San Antonio Housing Finance Corp., Britt
Oak Ltd.-B, 9.75%, 1/1/10, Callable
7/1/04 @103.............................. 960
2,985 State Student Loan, SR. Lien, 0.00%,
10/1/25.................................. 2,298
1,000 Winter Garden Housing Finance Corp., Single
Family Mortgage Revenue, GNMA & FNMA,
6.20%, 10/1/19........................... 1,005
---------
6,101
---------
West Virginia (0.5%):
1,500 State Housing Development, Series B, 7.20%,
11/1/20, Callable 5/1/02 @102**.......... 1,569
---------
Wyoming (0.1%):
350 Community Development Authority, 7.75%,
6/1/09, Callable 11/30/99 @103**......... 367
---------
Total Alternative Minimum Tax Paper 85,604
---------
INVESTMENT COMPANIES (0.0%):
81 Provident Municash Tax-Free Money Market
Fund..................................... 81
---------
Total Investment Companies 81
---------
Total (Cost--$291,275) (a) $ 291,562
---------
---------
</TABLE>
- ------------
Percentage indicated are based on net assets of $290,106.
CONTINUED
- ----28
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<C> <S>
(a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the
amount of losses recognized for financial reporting in excess of federal income tax reporting of approximately $129.
Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation.................................................... $ 2,560
Unrealized depreciation.................................................... (2,402)
---------
Net unrealized appreciation................................................ $ 158
---------
---------
</TABLE>
<TABLE>
<S> <C>
Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
* effect at June 30, 1996.
** Additional put & demand features exist allowing the fund to require the repurchase of the instrument within variable
time periods, at variable amounts.
AMBAC Insured by American Municipal Bond Association Corp.
FHA Insured by Federal Housing Administration
FNMA Insured by Federal National Mortgage Assoc.
GNMA Insured by Government National Mortgage Assoc.
GO General Obligation
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Assoc.
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
KENTUCKY MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------ ---------
<C> <S> <C>
MUNICIPAL BONDS (96.9%):
Kentucky (96.9%):
$ 510 Clinton County School District Financial
Corp., 6.10%, 6/1/12.................... $ 524
2,000 Development Financial Authority Hospital
Revenue, Elizabeth, Med-A, 6.00%,
11/1/10, FGIC........................... 2,033
500 Eastern Kentucky University Revenues,
6.20%, 5/1/04........................... 534
500 Fayette County School District Financial
Corp., 6.00%, 5/1/03.................... 524
500 Higher Education Student Loan Corp.,
6.50%, 6/1/02, GSL...................... 531
1,705 Higher Education Student Loan Corp.,
7.00%, 12/1/06, GSL..................... 1,833
500 Higher Education Student Loan Corp.,
Insured Student Loan, 5.45%, 6/1/03,
GSL..................................... 503
400 Housing Corp., Housing Revenue, Series B,
5.85%, 7/1/00, FHA...................... 413
275 Housing Corp., Housing Revenue, Series A,
6.20%, 7/1/03, FHA...................... 285
500 Housing Corp., Housing Revenue, Series A,
5.50%, 1/1/06, FHA...................... 509
500 Housing Corp., Housing Revenue, Series A,
5.60%, 1/1/07, FHA...................... 509
1,000 Housing Corp., Housing Revenue, Series B,
5.15%, 7/1/07, FHA...................... 982
250 Infrastructure Authority, Series G, 6.10%,
6/1/02.................................. 264
500 Infrastructure Authority, Series E, 6.50%,
6/1/05.................................. 534
725 Jefferson County Capital Projects, 6.10%,
8/15/07................................. 755
1,000 Jefferson County Capital Projects, 5.50%,
4/1/10, AMBAC........................... 992
400 Jefferson County Health Facilities
Revenue, 6.00%, 5/1/01.................. 421
500 Jefferson County Health Facilities
Revenue, 6.38%, 5/1/08, AMBAC........... 529
500 Jefferson County Hospital Revenue, 6.20%,
10/1/04, MBIA........................... 538
500 Kenton County Airport Revenue,
International, AR-A, AMT, 6.10%, 3/1/04,
FSA..................................... 522
400 Kenton County Airport Revenue,
International, AR-A, AMT, 6.20%, 3/1/05,
FSA..................................... 418
500 Kenton County Airport Revenue,
International, Series B, AMT 5.75%,
3/1/07, FSA............................. 502
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------ ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 500 Kenton County Airport Revenue,
International, Series B, AMT 5.75%,
3/1/08, FSA............................. $ 501
750 Kenton County School District Financial
Corp., 4.50%, 7/1/99.................... 749
325 Kenton County School District Financial
Corp., 5.25%, 7/1/07.................... 321
500 Kentucky State University Revenue, 6.25%,
5/1/02, MBIA............................ 537
500 Lexington-Fayette Urban County Government
Sewer System Revenue, 6.35%, 7/1/07,
MBIA.................................... 538
200 Louisville & Jefferson County, 4.80%,
5/15/98, MBIA........................... 202
200 Louisville Public Property Corp., 6.40%,
12/1/07................................. 212
310 Louisville Water Revenue, 6.38%,
11/1/97................................. 320
500 Louisville Water Works Board Water System,
5.40%, 11/15/04......................... 510
500 Louisville Water Works Board Water System,
5.63%, 11/15/07......................... 508
1,040 Louisville Water Works Board Water System,
5.75%, 11/15/09......................... 1,052
1,000 McCracken County Hospital Revenue, Series
A, 6.20%, 11/1/05, MBIA................. 1,079
1,000 McCracken County Hospital Revenue, Series
A, 6.40%, 11/1/07, MBIA................. 1,086
200 Morehead State University, Series M,
6.30%, 11/1/08, AMBAC................... 212
500 Muhlenberg County School District, 2nd
Series, 5.85%, 8/1/10................... 507
250 Murray State University Revenue, 5.60%,
5/1/07.................................. 251
530 Northern Kentucky University Revenue,
6.10%, 5/1/06, AMBAC.................... 562
600 Perry County School District, 6.25%,
7/1/09.................................. 631
250 Richmond Water, Gas & Sewer Revenue,
6.50%, 6/1/99, MBIA..................... 264
100 Shelby County School District, 6.25%,
9/1/03.................................. 107
500 Shelby County School District, 6.50%,
9/1/05.................................. 545
1,000 State Property & Buildings, Project No.
54, 5.10%, 9/1/00....................... 1,015
2,000 State Property & Buildings, Project No.
50, 6.00%, 2/1/10....................... 2,104
750 State Turnpike Authority Development,
5.70%, 1/1/03........................... 779
</TABLE>
CONTINUED
- ----30
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
KENTUCKY MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------ ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Kentucky, continued:
$ 750 State Turnpike Authority Development ,
5.50%, 7/1/08........................... $ 759
1,000 State Turnpike Authority Development ,
5.50%, 7/1/09........................... 1,006
1,000 State Turnpike Authority Development,
5.63%, 7/1/10, AMBAC.................... 1,009
500 State Turnpike Authority Development,
5.75%, 7/1/11, AMBAC.................... 507
500 State Turnpike Authority Resource
Recovery, 6.63%, 7/1/08................. 542
1,000 State Turnpike Authority Resource
Recovery, Series A, 6.00%, 7/1/09....... 1,001
250 State Turnpike Authority Toll Road, 5.80%,
7/1/99.................................. 258
500 University of Kentucky Revenues, Series F,
5.75%, 5/1/97........................... 508
500 University of Kentucky Revenues, Series F,
6.25%, 5/1/07........................... 520
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------ ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
500 University of Louisville Revenues, Series
I, 5.40%, 5/1/07........................ 502
$ 500 University of Louisville Revenues, Series
I, 5.40% 5/1/08......................... $ 499
500 University of Louisville Revenues, Series
I, 5.40%, 5/1/09........................ 494
985 Western Kentucky University Revenues,
5.00%, 5/1/09........................... 945
950 Winchester Utilities Revenue, 5.30%,
7/1/09.................................. 914
---------
Total Municipal Bonds 38,711
---------
INVESTMENT COMPANIES (2.0%):
812 The One Group Municipal Money Market Fund,
Class A................................. 812
---------
Total Investment Companies 812
---------
Total (Cost--$39,153)(a) $ 39,523
---------
---------
</TABLE>
- ------------
Percentage indicated are based on net assets of $39,935.
<TABLE>
<C> <S>
(a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as
follows (amounts in thousands):
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation.................................................... $ 432
Unrealized depreciation.................................................... (62)
---------
Net unrealized appreciation................................................ $ 370
---------
---------
</TABLE>
<TABLE>
<S> <C>
AMBAC Insured by American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax Paper
FGIC Insured by Financial Guaranty Insurance Corp.
FHA Insured by Federal Housing Administration
FSA Insured by Financial Security Assurance
GSL Guaranteed Student Loans
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS (93.6%):
Massachusetts (1.0%):
$ 1,000 6.75%, 8/1/09, Callable 8/1/01 @102........ $ 1,085
---------
Missouri (1.0%):
1,000 State Health, 6.40%, 6/1/10, MBIA.......... 1,086
---------
Ohio (91.5%):
1,045 Akron Sewer Systems, 5.30%, 12/1/05,
MBIA..................................... 1,057
1,000 Akron Sewer Systems, 5.65%, 12/1/08,
Callable 12/1/06 @101**.................. 1,018
2,000 Bexley School District, 6.50%, 12/1/16, GO,
Prerefunded 12/1/01 @102................. 2,185
725 Bowling Green State University, 5.65%,
6/1/11, AMBAC............................ 724
1,000 Butler County Hospital Facilities, 6.75%,
11/15/10 Callable 11/15/01 @102.......... 1,079
1,050 Capital Corp. for Housing, 5.60%, 1/1/07,
Callable 7/1/03 @102**................... 1,060
2,775 Clermont County Waterworks, 6.63%, 12/1/15,
AMBAC, Prerefunded 12/1/01 @102.......... 3,061
1,000 Cleveland, 6.88%, 7/1/09, GO, MBIA,
Prerefunded 7/1/99 @102.................. 1,083
1,000 Cleveland, 6.38%, 7/1/12, GO, MBIA,
Callable 7/1/02 @102..................... 1,049
1,500 Cleveland Public Power System, 0.00%,
11/15/11, MBIA........................... 630
2,500 Cleveland Public Power System, 6.40%,
11/15/06, MBIA, Callable 11/15/04........ 2,738
1,850 Cleveland Waterworks, 6.25%, Series F-928,
1/1/06, AMBAC, Callable 1/1/02 @102...... 1,962
2,800 Cleveland Waterworks Revenue, Series F-928,
6.50%, 1/1/11, Callable 1/1/02 @102...... 2,969
1,225 Columbus Municipal Airport No. 30-E-U,
6.20%, 4/15/04, GO, Callable 4/15/01
@100..................................... 1,291
1,000 Columbus Sewer Improvements, 6.75%,
9/15/06, GO, Callable 9/15/01 @100....... 1,080
1,285 Columbus Waterworks Enlargement No. 44,
6.00%, 5/1/11, GO, Callable 9/1/03
@102..................................... 1,331
1,000 Columbus Waterworks Enlargement No. 44,
6.00%, 5/1/12, GO, Callable 9/1/03
@102..................................... 1,032
1,000 Cuyahoga County Hospital, Series A, 5.50%,
1/15/10, Callable 1/15/06 @102**......... 990
1,500 Cuyahoga County Public Improvements, 6.70%,
10/1/10, GO, Prerefunded 10/1/99 @102.... 1,621
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,000 Delaware County Library District, 7.25%,
11/1/10, GO, Prerefunded 11/1/00 @102.... $ 1,116
1,000 Delaware County Sewer, 5.60%, 12/10/10, GO,
Callable 12/1/05 @101.................... 999
1,000 Fairfield County Hospital Improvement
Revenue, Lancaster-Fairfield Community
Hospital, 7.10%, 6/15/21, MBIA,
Prerefunded 6/15/01 @102................. 1,118
1,290 Franklin County Hospital Revenue, 5.65%,
11/1/08, Callable 11/1/06 @101**......... 1,284
800 Franklin County Hospital Revenue, 5.80%,
11/1/10 Callable 11/1/06 @101**.......... 796
1,000 Franklin County Hospital Revenue,
Children's Hospital Project, Series A,
6.50%, 5/1/07, Callable 11/1/02 @102..... 1,063
1,000 Franklin County Hospital Revenue,
Children's Hospital Project, Series A,
6.60%, 11/1/11, Callable 11/1/01 @102.... 1,099
1,000 Franklin County Hospital Revenue, Riverside
United, Series B, 7.60%, 5/15/20,
Prerefunded 5/15/00 @102................. 1,118
1,000 Greene County Water System, 6.85%, 12/1/11,
AMBAC, Callable 12/1/01 @102............. 1,084
1,500 Hamilton City Electric Systems, 6.13%,
10/15/08, FGIC, Callable 10/15/02 @102... 1,576
1,500 Hamilton County Building Improvement &
Refunding Museum Center, 6.50%, 12/1/09,
GO, Callable 12/1/01 @102................ 1,612
1,265 Hamilton County Hospital Facilities, Christ
Hospital, Series B, 6.63%, 1/1/06,
Callable 1/1/01 @100..................... 1,340
1,500 Hamilton County Hospital Facilities,
Bethesda Hospital, Series A , 6.25%,
1/1/12, Callable 1/1/03 @102............. 1,512
1,000 Hamilton County Sewer System Refunding &
Improvements, Series A, 4.30%, 12/1/98,
FGIC..................................... 1,001
380 Hamilton County Sewer System, 6.30%,
12/1/01, Prerefunded 6/1/01 @102......... 411
1,000 Hamilton Waterworks Water Utility
Improvement, 6.40%, 10/15/07, MBIA,
Callable 10/15/01 @102................... 1,073
1,000 Hilliard School District School
Improvements, Series A, 5.35%, 12/1/04,
GO....................................... 1,015
</TABLE>
CONTINUED
- ----32
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Ohio, continued:
$ 1,250 Housing Finance Agency Mortgage, Series
A-1, 6.20%, 9/1/14, GNMA, Callable 3/1/05
@102..................................... $ 1,267
1,000 Kent State University, 6.45%, 5/1/12,
AMBAC, Callable 9/1/02 @102.............. 1,054
2,000 Lakewood Sanitation Sewer System, Special
Obligation, 6.40%, 12/1/11, GO, Callable
12/1/01 @102............................. 2,087
2,000 Middleburg Heights Hospital, 5.70%,
8/15/10, FSA, Callable 8/15/08 @102**.... 2,000
2,000 Montgomery County Sisters of Charity,
Series A, 6.50%, 5/15/08, MBIA, Callable
5/15/01 @102............................. 2,130
1,000 Northeast Regional Sewer District
Wastewater, 6.50%, 11/15/08, AMBAC,
Prerefunded 11/15/01 @101................ 1,089
1,000 North Royalton, 7.50%, 12/1/11, GO,
Callable 12/1/00 @102.................... 1,117
1,000 Pickerington Local School District, 7.00%,
12/1/13, GO, AMBAC, Prerefunded 12/1/00
@102..................................... 1,107
2,600 Portage County, Robinson Memorial Hospital
Project, 5.63%, 11/15/07, MBIA, 11/15/04
@102..................................... 2,654
1,315 Portage County, Robinson Memorial Hospital,
5.50%, 11/15/09, MBIA, Callable
12/15/05................................. 1,308
2,220 Rocky River City School District, School
Improvements, 6.90%, 12/1/11, GO,
Callable 12/1/00 @102.................... 2,400
1,000 Saint Mary's Electric Systems Mortgage,
7.15%, 12/1/10 AMBAC, Callable 12/1/00
@102..................................... 1,102
1,000 Sandusky City School District, 7.30%,
12/1/10, GO, Callable 12/1/00 @102....... 1,093
1,000 Shaker Heights, City Schools, 7.10%,
12/15/10, GO............................. 1,135
1,000 Springfield, 6.88%, 9/1/06, GO, AMBAC,
9/1/01 @102.............................. 1,101
1,000 State Building Authority, 7.35%, 4/1/09,
Prerefunded 4/01/00 @102................. 1,108
2,000 State Building Authority, Adult
Correctional Building, Series A, 6.13%,
10/1/09, Callable 10/1/03 @102........... 2,082
1,000 State Building Authority, State
Correctional Facilities, 6.50%, 10/1/01.. 1,079
2,000 State Building Authority, State Facilities,
J. Rhodes, Series A, 6.38%, 6/1/07,
Callable 6/1/01 @102..................... 2,117
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,000 State Building Authority, State Facilities
Administration Building Funds, Series A
,5.75%, 10/1/06, MBIA, Callable 10/1/04
@102..................................... $ 1,038
1,165 State Building Authority, State Facilities
Transportation Building Fund, Projects,
Series A, 6.50%, 9/1/09, AMBAC, Callable
9/1/04 @102.............................. 1,259
1,000 State Liquor Profits Revenue, 6.85%,
9/1/00, BIG.............................. 1,081
1,000 State University, University & College
Improvements, 5.50%, 12/1/03, Callable
12/1/02 @102............................. 1,033
2,510 State Fresh Water Development, 5.80%,
6/1/11, Callable 6/1/05 @102**........... 2,554
1,000 State Water Development Authority,
Pollution Control Facilities, 5.50%,
12/1/09, MBIA, Callable 6/1/05 @101...... 996
1,000 Ottawa County, 7.00%, 9/1/11, GO, AMBAC,
Callable 9/1/01 @102..................... 1,102
1,000 Toledo Sewer System Revenue, 7.38%,
11/15/10, MBIA Callable 11/15/98 @102.... 1,080
1,000 University of Cincinnati Certificates of
Participation, University & College
Improvements, 6.75%, 12/1/09, MBIA,
Callable 12/1/01 @102.................... 1,079
1,000 University of Cincinnati General Receipts,
Health & Hospital Improvements, 7.10%,
6/1/10, Prerefunded 6/1/99 @102.......... 1,089
1,000 University of Cincinnati General Receipts,
University & College Improvements, 7.00%,
6/1/11, Callable 6/1/01 @102............. 1,091
1,000 University of Cincinnati, Series R2, Refund
Bonds, 6.25%, 6/1/09, Callable 12/1/02
@102..................................... 1,046
1,000 Westerville, Minerva Park & Blendon Joint
Township, Saint Ann's Hospital, Series B,
6.80%, 9/15/06, AMBAC, Callable 9/15/01
@102..................................... 1,109
2,750 Westerville, Minerva Park & Blendon Joint
Township, Saint Ann's Hospital, Series B,
7.00%, 9/15/12 AMBAC, Callable 9/15/01
@102..................................... 3,077
1,000 Worthington City School District, 7.45%,
12/1/12, MBIA, Prerefunded 12/1/99
@102..................................... 1,108
---------
95,949
---------
</TABLE>
CONTINUED
33----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Ohio, continued:
Washington (1.0%):
$ 1,000 State, Series A & AT-6, 6.25%, 2/1/11,
GO....................................... $ 1,073
---------
Total Municipal Bonds 99,193
---------
INVESTMENT COMPANIES (5.4%):
603 Fidelity Tax-Free Money Market Fund........ 603
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
5,159 The One Group Ohio Municipal Money Market
Fund--Fiduciary Class.................... $ 5,159
---------
Total Investment Companies 5,762
---------
Total (Cost--$100,675) (a) $ 104,955
---------
---------
</TABLE>
- ------------
Percentage indicated are based in net assets of $105,972
<TABLE>
<C> <S>
(a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as
follows (amounts in thousands):
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation..................................................... $ 4,341
Unrealized depreciation..................................................... (61)
---------
Net unrealized appreciation................................................. $ 4,280
---------
---------
</TABLE>
<TABLE>
<S> <C>
Additional put and demand features exist allowing the Fund to require the repurchase of the instrument within
** variable time periods at variable amounts.
AMBAC Insured by AMBAC Indemnity Corporation
BIG Bond Insurance Guaranty
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
GNMA Insured by Government National Mortgage Assoc.
GO General Obligation
MBIA Insured by Municipal Bond Insurance Assoc.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----34
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
LOUISIANA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS (98.5%):
Louisiana (98.5%):
$ 300 Alexandria Public Improvement, Sales & Use
Tax, Series ST-1987, 7.35%, 8/1/97,
MBIA..................................... $ 311
750 Alexandria, Utilities Revenue, 5.25%,
5/1/06, FGIC............................. 749
1,165 Ascension Parish, Gravity Drain, 5.40%,
12/1/07, Callable 12/1/06 @100........... 1,169
1,230 Ascension Parish, Gravity Drain, 5.50%,
12/1/08, Callable 12/1/06 @100........... 1,234
2,500 Bastrop Industrial Development Board,
Pollution Control Revenue, 6.90%, 3/1/07,
International Paper Co................... 2,685
700 Baton Rouge Public Improvements, Sales &
Use Tax, 6.85%, 8/1/00, AMBAC............ 754
800 Baton Rouge Public Improvements, Sales &
Use Tax, 6.90%, 8/1/01, AMBAC............ 860
2,000 Baton Rouge Public Improvements, Sales &
Use Tax, 6.00%, 8/1/04, FSA.............. 2,107
765 Baton Rouge Public Improvements, Sales &
Use Tax, 6.38%, 8/1/09, FSA.............. 801
1,145 Baton Rouge, Sales & Use Tax--Series A,
6.00%, 8/1/06, Callable 8/1/01 @101.5,
FSA...................................... 1,192
400 Bossier City Public Improvement, Sales &
Use Tax, Series ST-1989, 6.88%, 11/1/06,
FGIC..................................... 429
400 Bossier City Public Improvement, Sales &
Use Tax, 6.88%, 11/1/07, FGIC............ 429
805 Bossier City Public Improvement, Sales &
Use Tax, Series ST, 6.20%, 11/1/07,
AMBAC.................................... 849
550 Bossier City Public Improvement, Sales &
Use Tax, 6.88%, 11/1/08, FGIC............ 590
795 Bossier City Utilities Revenue, 5.10%,
10/1/08.................................. 767
1,415 Caddo Parish GO, 5.25%, 2/1/06, MBIA....... 1,416
750 Caddo Parish GO, 5.25%, 2/1/08, MBIA....... 738
470 Caddo Parish Industrial Development Board,
5.95%, 11/1/07, Wal-Mart Stores Income
Project.................................. 462
500 Caddo Parish School District, 5.00%,
3/1/03, GO, MBIA......................... 501
500 Calcasieu Parish School District, # 22,
Ward 3, Series A, GO, 7.10%, 2/1/01,
BIG...................................... 527
4,335 De Soto Parish Pollution Control Revenue
Series A, 5.05%,12/1/02, International
Paper Co................................. 4,340
120 De Soto Parish School District # 2, GO,
8.00%, 8/1/05............................ 129
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,280 East Baton Rouge Mortgage Finance
Authority, 5.45%, 10/1/03, GNMA/ FNMA.... $ 1,268
740 East Baton Rouge Mortgage Finance
Authority, 4.50%, 10/1/09, GNMA/ FNMA.... 710
530 East Baton Rouge Mortgage Finance
Authority, 4.75%, 10/1/09, GNMA/ FNMA.... 513
1,200 East Baton Rouge Mortgage Finance
Authority, 5.50%, 10/1/21, GNMA/ FNMA.... 1,201
500 East Baton Rouge Parish Sales & Use Tax,
7.10%, 2/1/99, MBIA...................... 532
500 East Baton Rouge Parish Sales & Use Tax,
7.10%, 2/1/00, MBIA...................... 539
500 East Baton Rouge Parish Sales & Use Tax,
Series ST, 5.80%, 2/1/07, FGIC........... 518
845 East Baton Rouge Parish Sales & Use Tax,
Series ST, 5.80%, 2/1/08, FGIC........... 870
910 East Baton Rouge Parish Sales & Use Tax,
Series ST, 5.80%, 2/1/09, FGIC........... 930
1,085 East Baton Rouge Parish, Series ST, 5.15%,
2/1/05................................... 1,071
1,145 East Baton Rouge Parish, Series ST, 5.15%,
2/1/06................................... 1,117
2,280 East Baton Rouge Parish, Series ST-A,
8.00%, 2/1/02, FGIC...................... 2,614
1,000 East Baton Rouge Parish, Series ST, 5.10%,
2/1/07, FGIC, Callable 2/1/06 @101.5..... 973
1,390 Greater Baton Rouge Parking Authority,
Sales & Use Tax, 6.38%, 7/1/03........... 1,394
1,560 Houma Utilities Revenue, 6.13%, 1/1/07,
FGIC..................................... 1,633
730 Housing Finance Agency, Mortgage Revenue
Super Sinker--Single Family A-1, 5.70%,
6/1/15, GNMA/FNMA/ FHLMC................. 732
2,500 Housing Family Agency, Mortgage Revenue,
5.13%, 12/1/10........................... 2,478
1,395 Iberia Home Mortgage Authority, 7.38%,
1/1/11................................... 1,485
300 Iberville Parish Sales & Use Tax, 6.20%,
9/1/98, MBIA............................. 305
500 Jefferson Parish GO, 7.10%, 9/1/97, FGIC... 519
500 Jefferson Parish GO, 7.40%, 9/1/99, FGIC... 516
250 Jefferson Parish GO, 7.70%, 9/1/02, FGIC... 259
400 Jefferson Parish Construction Waterworks
District # 2 GO, 7.25%, 1/15/00.......... 405
3,180 Jefferson Parish Drain, Sales Tax Revenue,
6.50%, 11/1/06, AMBAC.................... 3,393
</TABLE>
CONTINUED
35----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
LOUISIANA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Louisiana, continued:
$ 350 Jefferson Parish Home Mortgage Authority,
Single Family Mortgage Revenue, 4.50%,
6/1/13................................... $ 341
4,920 Jefferson Parish Sales Tax District
Special, Series A, 6.75%, 12/1/06,
FGIC..................................... 5,354
1,985 Jefferson Parish Sales Tax District
Special, Series B, 6.75%, 12/1/06,
FGIC..................................... 2,160
1,000 Jefferson Parish School Board, Sales & Use
Tax, 4.75%, 2/1/06, AMBAC................ 949
4,000 Jefferson Parish School Board, Sales & Use
Tax Revenue Refunding, 6.05%, 2/1/02,
MBIA..................................... 4,228
1,270 Jefferson Parish School Board, Sales & Use
Tax Revenue Refunding, 6.15%, 2/1/03,
MBIA..................................... 1,350
4,500 Jefferson Parish School Board, Sales & Use
Tax Revenue Refunding, 6.25%, 2/1/08,
MBIA..................................... 4,735
880 Kenner Sales & Use Tax Revenue Refunding,
5.75%, 6/1/06, FGIC...................... 910
1,000 Lafayette Parish Refunding, 7.80%, 3/1/01,
GO, FGIC................................. 1,067
750 Lafourche Parish Hospital Service District
# 3 Hospital Revenue, 5.50%, 10/1/04..... 721
1,730 Lafayette Parish Public Power Authority
Electricity Revenue, 6.80%, 11/1/00...... 1,797
4,000 Lafayette Parish Public Power Authority
Electricity Revenue Refunding-- Series
ST-1987, 7.13%, 11/1/07.................. 4,146
500 Lafayette Parish Public Power Authority
Electricity Revenue Refunding, 7.25%,
11/1/12, BIG............................. 520
650 Lafourche Parish Water District # 1 Water
Revenue Refunding, 5.63%, 1/1/01......... 665
500 Lincoln Parish School District # 1 Ruston
Refunding, 6.20%, 3/1/03, GO, MBIA....... 524
1,465 Lincoln Parish School District # 1 Ruston
Refunding, 6.40%, 3/1/05, GO, MBIA....... 1,540
1,220 Monroe Parish Special School District GO,
8.00%, 3/1/01, MBIA...................... 1,381
1,300 Monroe Parish Special School District GO,
7.00%, 3/1/02, MBIA...................... 1,432
1,390 Monroe Parish Special School District GO,
7.00%, 3/1/03, MBIA...................... 1,545
1,230 Monroe Parish Special School District GO,
5.35%, 3/1/05, FGIC...................... 1,246
1,320 Monroe Parish Special School District GO,
5.35%, 3/1/06, FGIC...................... 1,327
550 New Orleans, 5.85%, 11/1/07, GO, FGIC...... 570
500 New Orleans Exhibition Hall Authority,
0.00%, 1/15/08........................... 265
500 New Orleans Exhibition Hall Authority,
0.00%, 7/15/08........................... 257
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 2,525 Ouachita Parish Hospital Service, Glenwood
Regional Medical Center, Health Care
Revenue, 7.50%, 7/1/06, Callable 7/1/01
@102..................................... $ 2,628
2,000 Ouachita Parish West School District
GO--Refunding Series A, 6.50%, 3/1/03,
FSA, Callable 3/1/01 @102................ 2,159
1,250 Ouachita Parish West School District
GO--Refunding Series A, 6.60%, 3/1/04,
FSA, Callable 3/1/01 @102................ 1,354
2,695 Ouachita Parish West School District
GO--Refunding Series A, 6.65%, 3/1/05,
FSA...................................... 2,926
1,655 Ouachita Parish West School District
GO--Refunding Series A, 6.70%, 3/1/06,
FSA...................................... 1,796
1,440 Plaquemines Parish GO, 6.40%, 8/1/04,
AMBAC.................................... 1,548
420 Plaquemines Parish, Sales & Use Tax, 6.70%,
12/1/08.................................. 443
410 Plaquemines Parish, Sales & Use Tax, 6.70%,
12/1/09.................................. 430
605 Plaquemines Parish School Board, Sales &
Use Tax, 6.65%, 3/1/05................... 649
2,280 Public Facilities Authority, Alton Ochsner
Medical Foundation, Project A, Health
Care Revenue, 6.30%, 5/15/04, MBIA....... 2,437
1,030 Public Facilities Authority, General
Health, Inc. Project, Health Care
Revenue, 5.55%, 11/1/04, MBIA............ 1,060
1,000 Public Facilities Authority, Lafayette
General Medical Center Project, Health
Care Revenue, 6.05%, 10/1/04, FSA,
Callable 10/1/02 @102.................... 1,059
1,135 Public Facilities Authority, Mary Bird
Perkins Cancer Center, Health Care
Revenue, 5.50%, 1/1/04, FSA.............. 1,159
500 Public Facilities Authority, Our Lady of
Lake Hospital, Health Care Revenue,
5.70%, 12/1/04, MBIA, Callable 12/1/01
@102..................................... 514
1,785 Public Facilities Authority Revenue, Health
& Education, Health Care Revenue, 7.30%,
12/1/15, Sumitomo Bank, Ltd., Mandatory
Put 6/1/97 @100*......................... 1,831
3,925 Public Facilities Authority Revenue, Health
& Education Series B, Health Care
Revenue, 7.30%, 12/1/15, Sumitomo Bank,
Ltd., Mandatory Put 6/1/97 @100*......... 4,045
500 Public Facilities Authority Revenue, Loyola
University Series A, 7.20%, 10/1/00,
Callable 10/1/99 @102.................... 542
</TABLE>
CONTINUED
- ----36
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
LOUISIANA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Louisiana, continued:
$ 1,960 Public Facilities Authority Revenue, Loyola
University, 6.60%, 4/1/05, Callable
4/1/02 @102.............................. $ 2,119
750 Public Facilities Authority Revenue, Tulane
University Series C, 7.00%, 8/15/97...... 775
300 Public Facilities Authority Revenue, Tulane
University Series C, 7.20%, 8/15/98,
Callable 8/15/97 @102.................... 315
300 Public Facilities Authority Revenue, Tulane
University Series A, 7.50%, 5/15/00,
Callable 5/15/98 @102.................... 319
735 Public Facilities Authority Revenue, Tulane
University, 5.55%, 10/1/07, AMBAC,
Callable 10/1/06 @102.................... 742
1,605 Public Facilities Authority Revenue, Tulane
University, 5.75%, 10/1/09, AMBAC,
Callable 10/1/06 @102.................... 1,619
2,145 Public Facilities Authority Revenue, Tulane
University, Unrefunded Balance, 6.25%,
7/15/06.................................. 2,238
550 Public Facilities Authority Revenue, Tulane
University, Unrefunded Balance, 6.40%,
11/15/07................................. 579
605 Public Facilities Authority Revenue, Tulane
University Series B, Unrefunded Balance,
7.00%, 8/15/97........................... 625
170 Public Facilities Authority Revenue, Tulane
University Series B, Unrefunded Balance,
7.20%, 8/15/98........................... 178
325 Public Facilities Authority Revenue, Tulane
University Series A-1, Unrefunded
Balance, 5.80%, 2/15/04, FGIC............ 340
725 Public Facilities Authority Revenue, Tulane
University Series A-1, Unrefunded
Balance, 6.00%, 2/15/07, FGIC............ 758
710 Public Facilities Authority Revenue
Refunding, Multi-Family Housing, Linlake
Village, 5.25%, 6/1/07*.................. 718
110 Public Facilities Authority Revenue,
Special Assessment (Escrowed), 7.38%,
6/1/09................................... 119
870 Public Facilities Authority, St. Francis
Medical Center Project, Health Care
Revenue, 4.90%, 7/1/05, FSA, Callable
7/1/04 @102.............................. 843
500 Public Facilities Authority, Women's
Hospital Foundation, Health Care Revenue,
7.20%, 10/1/97, FGIC..................... 519
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,235 Public Facilities Authority, Women's
Hospital Foundation, Health Care Revenue,
6.85%, 10/1/05, Callable 10/1/02 @102.... $ 1,250
730 Public Facilities Authority, Women's
Hospital Foundation, Health Care Revenue,
5.40%, 10/1/05, FGIC, Callable 10/1/04
@102..................................... 733
1,715 Public Facilities Authority, Women's
Hospital Foundation, Health Care Revenue,
5.50%, 10/1/06, FGIC, Callable 10/1/04
@102..................................... 1,723
670 Rapides Parish School District #11 GO,
6.90%, 2/1/01, FGIC...................... 715
1,475 Rapides Parish School District #11 GO,
6.95%, 2/1/02, FGIC...................... 1,570
500 Rapides Parish Consolidated School District
#62 GO, 7.25%, 4/1/00, MBIA.............. 533
750 St Charles Parish Public Improvement, Sales
& Use Tax, 6.60%, 11/1/07................ 783
1,000 St. Charles Parish School District # 1 GO,
6.25%, 3/1/04, AMBAC..................... 1,058
2,350 St. Charles Parish School District # 1 GO,
6.45%, 3/1/06, AMBAC..................... 2,485
870 St John Baptist Parish School District #1
GO, 6.25%, 3/1/05........................ 904
1,000 St. Landry Parish Consolidated School
District # 1 GO, 8.00%, 5/1/98, MBIA..... 1,066
750 St. Landry Parish Consolidated School
District # 1 GO, 6.10%, 5/1/07, MBIA..... 777
300 St. Tammany Parish Refunding GO, 7.40%,
3/1/98, FGIC............................. 315
1,000 St. Tammany Parish District # 3 Series A,
Sales & Use Tax, 6.50%, 12/1/02, FGIC.... 1,066
1,000 St. Tammany Parish District # 3 Series A,
Sales & Use Tax, 6.50%, 12/1/03, FGIC.... 1,071
750 St. Tammany Parish District # 3 Series A,
Sales & Use Tax, 6.50%, 12/1/05, FGIC.... 792
1,815 St. Tammany Parish Hospital Service,
Hospital District # 1, Health Care
Revenue, 6.30%, 7/1/07, FGIC............. 1,867
620 St. Tammany Parish School Board, Sales &
Use Tax, 6.70%, 4/1/98, FGIC............. 645
550 St. Tammany Parish School District # 12,
Sales & Use Tax, 6.50%, 3/1/01, FGIC..... 590
400 St. Tammany Parish School District # 12,
Sales & Use Tax, 6.50%, 3/1/04, FGIC..... 422
480 Shreveport GO, 6.20%, 3/1/02, AMBAC........ 506
500 Shreveport GO, 6.70%, 2/1/03, AMBAC........ 533
480 Shreveport GO, 5.90%, 2/1/07............... 490
1,000 Shreveport GO, 5.20%, 2/1/10, AMBAC........ 960
930 Shreveport Water & Sewer Revenue Series A,
7.75%, 12/1/02, FGIC..................... 1,073
</TABLE>
CONTINUED
37----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
LOUISIANA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
MUNICIPAL BONDS, CONTINUED:
<C> <S> <C>
Louisiana, continued:
$ 500 Shreveport Water & Sewer Revenue Series A,
6.25%, 12/1/03, FGIC..................... $ 540
1,665 Stadium & Exposition District, Hotel
Occupancy Tax & Stadium Revenue, 5.65%,
7/1/07, Callable 7/1/04 @102............. 1,702
2,750 State GO, 7.10%, 9/1/03, FSA, Callable
9/1/00 @102.............................. 3,031
1,750 State GO, 5.80%, 8/1/10.................... 1,795
750 State Correctional Facilities Corporate
Lease Revenue Refunding, 5.60%, 12/15/03,
FSA...................................... 773
3,020 State Energy & Power Authority Power
Project Revenue Refunding-- Rodemacher
Unit # 2, 6.75%, 1/1/08, FGIC............ 3,270
800 State Gas & Fuels Tax Revenue Series A,
7.20%, 11/15/99.......................... 860
1,500 State Gas & Fuels Tax Revenue Series A,
7.25%, 11/15/04.......................... 1,633
400 State Offshore Terminal Authority Deepwater
Port Revenue, Refunding, 1st Stage Series
B, Loop Inc., 6.00%, 9/1/01.............. 416
1,065 State Offshore Terminal Authority Deepwater
Port Revenue, Refunding, 1st Stage Series
B, Loop Inc., 6.10%, 9/1/02.............. 1,115
2,750 State Offshore Terminal Authority Deepwater
Port Revenue, Refunding, 1st Stage Series
B, Loop Inc., 6.25%, 9/1/04.............. 2,903
4,000 State Reference Series A, 6.00%, 8/1/04,
FGIC..................................... 4,247
2,160 State Reference Series A, GO, 7.00%,
8/1/02, Callable 8/1/97 @102............. 2,276
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- ------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 430 State Series A, 6.00%, 5/1/08, AMBAC....... $ 445
1,500 State Series A, GO, 6.00%, 8/1/00.......... 1,573
6,290 State Series A, GO, 6.00%, 5/15/99, MBIA... 6,533
150 Sulphur Public Improvements Series B, Sales
& Use Tax, 6.00%, 3/1/00, MBIA........... 150
615 Sulphur Public Improvements Series B, Sales
& Use Tax, 6.00%, 3/1/01, MBIA........... 616
1,435 Tangipahoa Parish Consolidated School
District # 1 Refunding, Sales & Use Tax,
6.15%, 12/1/07, GO....................... 1,498
1,285 Terrebonne Parish Hospital Service,
District # 1 Terrebone General Medical
Center Project, Health Care Revenue
Refunding, 7.40%, 4/1/03, BIG............ 1,366
690 Terrebonne Parish Waterworks District # 1,
Water Revenue, 5.70%, 11/1/06, FGIC...... 714
500 Terrebonne Parish Waterworks District # 1,
Water Revenue, 5.75%, 11/1/08, FGIC...... 509
555 Vermilion Parish Hospital Service, District
# 2, Health Care Revenue Refunding Series
A, GO, 6.35%, 5/1/00, MBIA............... 584
---------
Total Municipal Bonds 189,906
---------
INVESTMENT COMPANIES (1.5%):
2,929 The One Group Municipal Money Market Fund,
Fiduciary Class.......................... 2,929
---------
Total Investment Companies 2,929
---------
Total (Cost--$189,709) (a) $ 192,835
---------
---------
</TABLE>
- ------------
Percentages indicated are based on net assets of $192,743.
<TABLE>
<C> <S>
(a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as
follows (amounts in thousands):
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation..................................................... $ 4,000
Unrealized depreciation..................................................... (874)
---------
Net unrealized appreciation................................................. $ 3,126
---------
---------
</TABLE>
CONTINUED
- ----38
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
LOUISIANA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1996
(Amounts in Thousands)
<TABLE>
<S> <C>
Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
* effect at June 30, 1996.
AMBAC Insured by AMBAC Indemnity Corporation
BIG Insured by Bond Insurance Guaranty
FGIC Insured by Financial Guaranty Insurance Corp.
FHLMC Insured by Federal Home Loan Mortgage Corp.
FNMA Insured by Federal National Mortgage Assoc.
FSA Insured by Financial Security Assurance
GNMA Insured by Government National Mortgage Assoc.
GO General Obligation
MBIA Insured by Municipal Bond Insurance Assoc.
ST Special Tax
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands, except per share amounts)
<S> <C> <C> <C> <C>
INTERMEDIATE MUNICIPAL KENTUCKY OHIO
TAX-FREE BOND INCOME MUNICIPAL BOND MUNICIPAL BOND
FUND FUND FUND FUND
-------------- ----------- ---------------- ----------------
ASSETS:
Investments, at value (cost $227,749; $291,275; $39,153;
$100,675; $189,709).................................... $ 230,575 $ 291,562 $ 39,523 $ 104,955
Interest receivable..................................... 3,134 4,987 644 1,160
Receivable from brokers for investments sold............ -- 772 -- --
Receivable for capital shares issued.................... 1,107 1,456 30 585
Receivable from adviser................................. 55 39 10 29
Deferred organization costs............................. -- 6 -- --
-------------- ----------- -------- --------
TOTAL ASSETS............................................ 234,871 298,822 40,207 106,729
-------------- ----------- -------- --------
LIABILITIES:
Cash overdrafts......................................... 1,107 1,063 28 186
Dividends payable....................................... 890 1,285 154 433
Payable to brokers for investments purchased............ 6,333 5,985 -- --
Payable for capital shares redeemed..................... 10 49 -- 4
Accrued expenses and other payables:
Investment advisory fees............................ 110 106 20 51
Administration fees................................. 30 39 5 14
12b-1 fees (Class A)................................ 1 5 2 4
12b-1 fees (Class B)................................ 2 17 1 6
Other............................................... 126 167 62 59
-------------- ----------- -------- --------
TOTAL LIABILITIES....................................... 8,609 8,716 272 757
-------------- ----------- -------- --------
NET ASSETS:
Capital................................................. 222,793 297,878 41,380 105,650
Undistributed net investment income..................... 233 20 -- 8
Accumulated undistributed net realized gains (losses)
from investment transactions........................... 410 (8,079) (1,815) (3,966)
Net unrealized appreciation (depreciation) from
investments............................................ 2,826 287 370 4,280
-------------- ----------- -------- --------
NET ASSETS.............................................. $ 226,262 $ 290,106 $ 39,935 $ 105,972
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Net Assets
Fiduciary........................................... $ 217,201 $ 241,115 $ 30,300 $ 80,611
Class A............................................. 6,622 25,787 8,178 16,507
Class B............................................. 2,439 23,204 1,457 8,854
-------------- ----------- -------- --------
$ 226,262 $ 290,106 $ 39,935 $ 105,972
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Outstanding units of beneficial interest (shares)
Fiduciary........................................... 20,353 24,956 3,018 7,540
Class A............................................. 621 2,662 814 1,540
Class B............................................. 228 2,403 146 820
-------------- ----------- -------- --------
Total................................................... 21,202 30,021 3,978 9,900
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Net asset value
Fiduciary--offering and redemption price per
share............................................. $ 10.67 $ 9.66 $ 10.04 $ 10.69
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Class A--redemption price per share................. $ 10.67 $ 9.69 $ 10.05 $ 10.72
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Class A--maximum sales charge....................... 4.50% 4.50% 4.50% 4.50%
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Class A maximum offering price (100%/ (100%-maximum
sales charge) of net asset value adjusted to
nearest cent) per share........................... $ 11.17 $ 10.15 $ 10.52 $ 11.23
-------------- ----------- -------- --------
-------------- ----------- -------- --------
Class B--offering price per share (a)............... $ 10.68 $ 9.66 $ 9.99 $ 10.79
-------------- ----------- -------- --------
-------------- ----------- -------- --------
<CAPTION>
<S> <C>
LOUISIANA
MUNICIPAL BOND
FUND
----------------
ASSETS:
Investments, at value (cost $227,749; $291,275; $39,153;
$100,675; $189,709).................................... $ 192,835
Interest receivable..................................... 3,197
Receivable from brokers for investments sold............ --
Receivable for capital shares issued.................... 32
Receivable from adviser................................. 32
Deferred organization costs............................. --
--------
TOTAL ASSETS............................................ 196,096
--------
LIABILITIES:
Cash overdrafts......................................... --
Dividends payable....................................... 733
Payable to brokers for investments purchased............ 2,395
Payable for capital shares redeemed..................... 21
Accrued expenses and other payables:
Investment advisory fees............................ 95
Administration fees................................. 26
12b-1 fees (Class A)................................ 11
12b-1 fees (Class B)................................ 2
Other............................................... 70
--------
TOTAL LIABILITIES....................................... 3,353
--------
NET ASSETS:
Capital................................................. 190,213
Undistributed net investment income..................... --
Accumulated undistributed net realized gains (losses)
from investment transactions........................... (596)
Net unrealized appreciation (depreciation) from
investments............................................ 3,126
--------
NET ASSETS.............................................. $ 192,743
--------
--------
Net Assets
Fiduciary........................................... $ 136,041
Class A............................................. 53,479
Class B............................................. 3,223
--------
$ 192,743
--------
--------
Outstanding units of beneficial interest (shares)
Fiduciary........................................... 13,706
Class A............................................. 5,388
Class B............................................. 325
--------
Total................................................... 19,419
--------
--------
Net asset value
Fiduciary--offering and redemption price per
share............................................. $ 9.93
--------
--------
Class A--redemption price per share................. $ 9.93
--------
--------
Class A--maximum sales charge....................... 4.50%
--------
--------
Class A maximum offering price (100%/ (100%-maximum
sales charge) of net asset value adjusted to
nearest cent) per share........................... $ 10.40
--------
--------
Class B--offering price per share (a)............... $ 9.93
--------
--------
</TABLE>
- ---------
<TABLE>
<C> <S>
(a) Redemption price per Class B share varies based on length of time shares are held.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----40
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands)
<S> <C> <C> <C> <C>
INTERMEDIATE MUNICIPAL KENTUCKY OHIO
TAX-FREE INCOME MUNICIPAL MUNICIPAL
BOND FUND FUND BOND FUND BOND FUND
--------------- ----------- ----------------- -----------------
INVESTMENT INCOME:
Interest income......................................... $ 12,507 $ 15,260 $ 2,128 $ 5,574
Dividend income......................................... 105 82 17 85
------- ----------- ------ ------
Total Income............................................ 12,612 15,342 2,145 5,659
------- ----------- ------ ------
EXPENSES:
Investment advisory fees................................ 1,400 1,103 241 586
Administration fees..................................... 390 409 68 165
12b-1 fees (Class A).................................... 25 64 30 48
12b-1 fees (Class B).................................... 16 139 5 56
Custodian and accounting fees........................... 56 93 22 29
Legal and audit fees.................................... 29 55 15 20
Organization costs...................................... 1 3 -- 6
Trustees' fees and expenses............................. 6 7 1 3
Transfer agent fees..................................... 67 100 42 88
Registration and filing fees............................ 48 46 10 21
Printing costs.......................................... 31 36 8 17
Other................................................... 10 13 3 5
------- ----------- ------ ------
Total expenses before waivers/reimbursements............ 2,079 2,068 445 1,044
Less waivers/reimbursements............................. (779) (507) (146) (395)
------- ----------- ------ ------
Net expenses............................................ 1,300 1,561 300 649
------- ----------- ------ ------
Net Investment Income................................... 11,312 13,781 1,845 5,010
------- ----------- ------ ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment
transactions........................................... 1,432 (2,505) (36) (253)
Net change in unrealized appreciation (depreciation)
from investments....................................... (248) 1,176 571 483
------- ----------- ------ ------
Net realized/unrealized gains (losses) from
investments............................................ 1,184 (1,329) 535 230
------- ----------- ------ ------
Change in net assets resulting from operations.......... $ 12,496 $ 12,452 $ 2,380 $ 5,240
------- ----------- ------ ------
------- ----------- ------ ------
<CAPTION>
<S> <C>
LOUISIANA
MUNICIPAL
BOND FUND(A)
----------------
INVESTMENT INCOME:
Interest income......................................... $ 6,372
Dividend income......................................... 40
-------
Total Income............................................ 6,412
-------
EXPENSES:
Investment advisory fees................................ 641
Administration fees..................................... 185
12b-1 fees (Class A).................................... 52
12b-1 fees (Class B).................................... 14
Custodian and accounting fees........................... 51
Legal and audit fees.................................... 26
Organization costs...................................... 1
Trustees' fees and expenses............................. 2
Transfer agent fees..................................... 55
Registration and filing fees............................ --
Printing costs.......................................... 6
Other................................................... 19
-------
Total expenses before waivers/reimbursements............ 1,052
Less waivers/reimbursements............................. (218)
-------
Net expenses............................................ 834
-------
Net Investment Income................................... 5,578
-------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment
transactions........................................... (146)
Net change in unrealized appreciation (depreciation)
from investments....................................... (3,198)
-------
Net realized/unrealized gains (losses) from
investments............................................ (3,344)
-------
Change in net assets resulting from operations.......... $ 2,234
-------
-------
</TABLE>
- ---------
<TABLE>
<C> <S>
(a) For the period from December 1, 1995 to June 30, 1996.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE KENTUCKY MUNICIPAL BOND
TAX-FREE BOND FUND MUNICIPAL FUND
INCOME FUND ------------------------
------------------------ ------------------------ PERIOD
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED JUNE
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, 30,
1996 1995 1996 1995 1996 1995 (A)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................. $ 11,312 $ 10,310 $ 13,782 $ 10,865 $ 1,845 $ 886
Net realized gains (losses) from
investment and transactions.......... 1,432 1,387 (2,505) (3,212) (36) (447)
Net change in unrealized appreciation
(depreciation) from investments...... (248) 1,623 1,176 3,441 571 2,403
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets resulting from
operations............................... 12,496 13,320 12,453 11,094 2,380 2,842
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income............. (10,698) (9,992) (12,119) (9,899) (1,450) (704)
From net realized gains from investment
transactions......................... (468) -- -- -- -- --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............. (328) (237) (996) (593) (374) (182)
In excess of net investment income..... -- (11) -- -- -- --
From net realized gains from investment
transactions......................... (17) -- -- -- -- --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income............. (64) (35) (666) (343) (21) --
From net realized gains from investment
transactions......................... (3) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets from shareholder
distributions............................ (11,578) (10,275) (13,781) (10,835) (1,845) (886)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............ 79,285 76,973 135,163 92,292 7,868 13,688
Dividends reinvested................... 1,603 1,337 1,920 1,490 224 117
Cost of shares redeemed................ (73,503) (52,112) (51,353) (56,680) (10,109) (16,297)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets from share
transactions............................. 7,385 26,198 85,730 37,102 (2,017) (2,492)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets....................... 8,303 29,243 84,402 37,361 (1,482) (536)
NET ASSETS:
Beginning of period.................... 217,959 188,716 205,704 168,343 41,417 41,953
----------- ----------- ----------- ----------- ----------- -----------
End of period.......................... $ 226,262 $ 217,959 $ 290,106 $ 205,704 $ 39,935 $ 41,417
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS:
Issued................................. 7,384 7,387 13,875 9,619 779 1,341
Reinvested............................. 148 128 197 155 23 12
Redeemed............................... (6,824) (5,012) (5,278) (5,967) (997) (1,602)
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Change in shares........................... 708 2,503 8,794 3,807 (195) (249)
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Undistributed (distributions in excess of)
net investment income included in net
assets:
End of period.......................... $ 233 $ 11 $ 20 $ 19 $ -- $ --
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
<CAPTION>
PERIOD
ENDED
JANUARY 19,
1995 (B)
------------
<S> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................. $ 2,318
Net realized gains (losses) from
investment and transactions.......... (1,331)
Net change in unrealized appreciation
(depreciation) from investments...... (4,798)
------------
Change in net assets resulting from
operations............................... (3,811)
------------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income............. (2,409)
From net realized gains from investment
transactions......................... --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............. --
In excess of net investment income..... --
From net realized gains from investment
transactions......................... --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income............. --
From net realized gains from investment
transactions......................... --
------------
Change in net assets from shareholder
distributions............................ (2,409)
------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............ 12,790
Dividends reinvested................... 340
Cost of shares redeemed................ (29,620)
------------
Change in net assets from share
transactions............................. (16,490)
------------
Change in net assets....................... (22,710)
NET ASSETS:
Beginning of period.................... 64,663
------------
End of period.......................... $ 41,953
------------
------------
SHARE TRANSACTIONS:
Issued................................. 1,300
Reinvested............................. 35
Redeemed............................... (3,103)
------------
------------
Change in shares........................... (1,768)
------------
------------
Undistributed (distributions in excess of)
net investment income included in net
assets:
End of period.......................... $ --
------------
------------
</TABLE>
- ---------
<TABLE>
<C> <S>
(a) For the period from January 20, 1995 (date merged) to June 30, 1995.
</TABLE>
<TABLE>
<C> <S>
(b) For the period from February 1, 1994 to January 19, 1995.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----42
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
LOUISIANA MUNICIPAL BOND FUND (A)
------------------------ ----------------------------------------------
YEAR ENDED YEAR ENDED SEVEN MONTHS YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, ENDED JUNE 30, NOVEMBER 30, NOVEMBER 30,
1996 1995 1996 1995 1994
----------- ----------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........................... $ 5,010 $ 5,282 $ 5,578 $ 10,058 $ 10,034
Net realized losses from investment
transactions.................................. (253) (3,290) (146) (11) (403)
Net change in unrealized appreciation
(depreciation) from investments............... 483 3,601 (3,198) 14,487 (15,995)
----------- ----------- -------------- -------------- --------------
Change in net assets resulting from operations...... 5,240 5,593 2,234 24,534 (6,364)
----------- ----------- -------------- -------------- --------------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS (B):
From net investment income...................... (4,102) (4,520) (1,732) -- --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income...................... (670) (627) (3,782) (10,014) (10,033)
In excess of net investment income.............. -- (22) -- -- --
From net realized gains......................... -- -- -- -- (2,114)
In excess of net realized gains from investment
transactions.................................. -- -- -- -- (36)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income...................... (238) (112) (64) (44) (2)
In excess of net investment income.............. -- (1) -- -- --
----------- ----------- -------------- -------------- --------------
Change in net assets from shareholder
distributions..................................... (5,010) (5,282) (5,578) (10,058) (12,185)
----------- ----------- -------------- -------------- --------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued..................... 28,462 12,266 13,459 27,568 44,951
Dividends reinvested............................ 890 870 929 1,980 2,653
Cost of shares redeemed......................... (18,818) (28,426) (26,535) (32,814) (28,565)
----------- ----------- -------------- -------------- --------------
Change in net assets from share transactions........ 10,534 (15,290) (12,147) (3,266) 19,039
----------- ----------- -------------- -------------- --------------
Change in net assets................................ 10,764 (14,979) (15,491) 11,210 490
NET ASSETS:
Beginning of period............................. 95,208 110,187 208,234 197,024 196,534
----------- ----------- -------------- -------------- --------------
End of period................................... $ 105,972 $ 95,208 $ 192,743 $ 208,234 $ 197,024
----------- ----------- -------------- -------------- --------------
----------- ----------- -------------- -------------- --------------
SHARE TRANSACTIONS:
Issued.......................................... 2,628 1,160 870 2,610 4,251
Issued in restatement of net asset value (c).... 1,261
Reinvested...................................... 82 82 89 189 250
Redeemed........................................ (1,744) (2,717) (2,146) (3,138) (2,744)
----------- ----------- -------------- -------------- --------------
Change in shares.................................... 966 (1,475) 74 (339) 1,757
----------- ----------- -------------- -------------- --------------
----------- ----------- -------------- -------------- --------------
Undistributed (distributions in excess of) net
investment income included in net assets:
End of period................................... $ 8 $ 8 $ -- $ -- $ --
----------- ----------- -------------- -------------- --------------
----------- ----------- -------------- -------------- --------------
</TABLE>
- ---------
<TABLE>
<C> <S>
(a) Upon reorganizing as a fund of The One Group, the Paragon Louisiana Tax-Free Fund became the Louisiana Municipal Bond
Fund. Changes in net assets for the periods prior to March 26, 1996 represent the Paragon Louisiana Tax-Free Fund.
</TABLE>
<TABLE>
<C> <S>
(b) Fiduciary Shares of the Louisiana Municipal Bond Fund commenced operations March 26, 1996 upon the conversion of
certain Class A Shares to Fiduciary Shares.
</TABLE>
<TABLE>
<C> <S>
(c) Pursuant to its reorganization as a fund of The One Group, the Louisiana Municipal Bond Fund issued additional shares
at the close of business March 25, 1996 as a result of restatement of the net asset values of Class A Shares from
$10.67 to $10.00 and Class B Shares from $10.70 to $10.00.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end investment company
established as a Massachusetts business trust. The Trust is registered to
offer four classes of shares: Fiduciary, Class A, Class B and Service. The
Trust currently consists of twenty-six active funds. The accompanying
financial statements and financial highlights are those of the Intermediate
Tax-Free Bond Fund, the Municipal Income Fund, the Kentucky Municipal Bond
Fund, the Ohio Municipal Bond Fund and the Louisiana Municipal Bond Fund
(individually a "Fund", collectively the "Funds") only. The Funds are each
offered in Fiduciary Class, Class A and Class B Shares. Class A Shares are
subject to initial sales charges, imposed at the time of purchase, in
accordance with the Funds' prospectuses. Certain redemptions of Class B
Shares are subject to contingent deferred sales charges in accordance with
the Funds' prospectuses. Each Fund is a diversified mutual fund, except for
the Kentucky Municipal Bond Fund, Ohio Municipal Bond Fund, and the
Louisiana Municipal Bond Fund, which are non-diversified. Effective February
7, 1996, the Tax-Free Bond Fund was renamed the Municipal Income Fund.
The Trust entered into an Agreement and Plan of Reorganization (the
"Agreement") with the Paragon Portfolio ("Paragon"), a Massachusetts
business trust. Pursuant to the Agreement all of the assets and liabilities
of each Paragon Fund transferred to a fund of The One Group in exchange for
shares of the corresponding fund of The One Group. Subsequent to the
reorganization, the fiscal year end changed from November 30 to June 30 for
the Louisiana Municipal Bond Fund. Therefore, the current period statements
of operations and changes in net assets for that Fund present the results of
operations and changes in net assets for the seven months ended June 30,
1996.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
- ---------------------------------- -------------------------------------------------------------------
<S> <C>
Intermediate Tax-Free Bond Fund Current income exempt from Federal income taxes consistent with
prudent investment management and the preservation of capital.
Municipal Income Fund Current income exempt from Federal income taxes.
Kentucky Municipal Bond Fund Current income both consistent with the preservation of capital and
exempt from federal income tax and Kentucky personal income tax.
Ohio Municipal Bond Fund Current income both consistent with the preservation of principal
and exempt from federal and Ohio income tax.
Louisiana Municipal Bond Fund Current income both consistent with the preservation of principal
and exempt from federal and Louisiana income tax.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The preparation
of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses for the period. Actual results could differ from those estimates.
CONTINUED
- ----44
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
SECURITY VALUATION
Corporate debt securities and debt securities of U.S. issuers (other than
short-term investments maturing in 60 days or less), including municipal
securities, are valued on the basis of valuations provided by dealers or by
an independent pricing service approved by the Board of Trustees.
Short-term investments maturing in 60 days or less are valued at amortized
cost, which approximates market value. Futures contracts are valued at the
settlement price established each day by the board of trade or an exchange
on which they are traded. Options traded on an exchange are valued using
the last sale price or, in the absence of a sale, the last offering price.
Options traded over-the-counter are valued using dealer-supplied
valuations. Investments for which there are no such quotations or
valuations are valued at fair value as determined in good faith by the
investment adviser under the direction of the Board of Trustees.
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements with institutions that the
Fund's investment adviser has determined are creditworthy. Each repurchase
agreement is recorded at cost. The Fund requires that the securities
purchased in a repurchase agreement transaction be transferred to the
custodian in a manner sufficient to enable the Fund to obtain those
securities in the event of a counterparty default. The seller, under the
repurchase agreement, is required to maintain the value of the securities
held at not less than the repurchase price, including accrued interest.
WRITTEN OPTIONS
The Funds may write covered call or put options for which premiums received
are recorded as liabilities and are subsequently adjusted to the current
value of the options written. Premiums received from writing options which
expire are treated as realized gains. Premiums received from writing
options, which are either exercised or closed, are offset against the
proceeds received or amount paid on the transaction to determine realized
gains or losses.
FUTURES CONTRACTS
The Funds may enter into futures contracts for the delayed delivery of
securities at a fixed price at some future date or for the change in the
value of a specified financial index over a predetermined time period. Cash
or securities are deposited with brokers in order to maintain a position.
Subsequent payments made or received by the fund based on the daily change
in the market value of the position are recorded as unrealized appreciation
or depreciation until the contract is closed out, at which time the
appreciation or depreciation is realized.
INDEXED SECURITIES
The Funds may invest in indexed securities whose value is linked either
directly or inversely to changes in foreign currencies, interest rates,
commodities, indices or other reference instruments. Indexed securities may
be more volatile than the referenced instrument itself, but any loss is
limited to the amount of the original investment.
MORTGAGE ROLLS
The Funds may enter into mortgage "dollar rolls" in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar securities on
a specified future date. During the roll period, the Fund forgoes principal
and interest paid on the mortgage-backed securities. The Fund is
compensated by fee income, for the difference between the current sales
price and the lower forward price for the future purchase.
CONTINUED
45----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities
in which they are invested pursuant to agreements requiring that the loan
be continuously secured by cash, U.S. Government or U.S. Government Agency
securities, shares of an investment trust or mutual fund, or any
combination of cash and such securities as collateral equal at all times to
at least 100% of the market value plus accrued interest on the securities
lent. The Funds continue to earn interest on securities lent while
simultaneously seeking to earn interest on the investment of collateral.
Collateral is marked to market daily to provide a level of collateral at
least equal to the market value of securities lent. There may be risks of
delay in recovery of the securities or even loss of rights in the
collateral should the borrower of the securities fail financially. However,
loans will be made only to borrowers deemed by the Adviser to be of good
standing and creditworthy under guidelines established by the Board of
Trustees and when, in the judgment of the Adviser, the consideration which
can be earned currently from such securities loans justifies the attendant
risk. Loans are subject to termination by the Funds or the borrower at any
time, and are, therefore, not considered to be illiquid investments. As of
June 30, 1996, the Funds had no securities on loan.
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net realized
gains or losses on sales of securities are determined on the specific
identification cost method. Interest income and expenses are recognized on
the accrual basis. Dividends are recorded on the ex-dividend date. Interest
income, including any discount or premium, is accrued as earned using the
effective interest method.
EXPENSES
Expenses directly attributable to a Fund are charged directly to that Fund,
while the expenses which are attributable to more than one fund of the
Trust are allocated among the respective Funds. Each class of shares bears
its pro-rata portion of expenses attributable to its series, except that
each class separately bears expenses related specifically to that class,
such as distribution fees.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid monthly for the
Funds. Net realized capital gains, if any, are distributed at least
annually. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are
generally due to differences in separate class expenses.
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to differing treatments for mortgage-backed securities, expiring
capital loss carryforwards, and deferrals of certain losses. Permanent book
and tax basis differences, which affect shareholder distributions, have
been reclassified to additional paid-in capital.
ORGANIZATION COSTS
Costs incurred by the Trust in connection with its organization, including
the fees and expenses of registering and qualifying its shares for
distribution have been deferred and are being amortized using the
straight-line method over a period of five years beginning with the
commencement of each Fund's operations. All such costs, which are
attributable to more than one fund, have been allocated among the funds of
the Trust pro-rata, based on the relative net assets of each fund. In the
event that any of the initial shares are redeemed
CONTINUED
- ----46
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
during such period by any holder thereof, the related fund will be
reimbursed by such holder for any unamortized organization costs in the
proportion as the number of initial shares being redeemed bears to the
number of initial shares outstanding at the time of redemption.
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each Fund intends to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and from
net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value which may, without shareholder approval, be divided into an
unlimited number of series of such shares and any series may be classified
or reclassified into one or more classes. Currently, shares of the Trust are
registered to be offered through thirty-two series and four classes:
Fiduciary, Class A, Class B and Service. Shareholders are entitled to one
vote for each full share held and will vote in the aggregate and not by
class or series, except as otherwise expressly required by law or when the
Board of Trustees has determined that the matter to be voted on affects only
the interest of shareholders of a particular class or series. The following
is a summary of transactions in Fund shares for the periods ended June 30,
1996 and June 30, 1995:
CONTINUED
47----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
INTERMEDIATE TAX-FREE MUNICIPAL INCOME FUND KENTUCKY MUNICIPAL BOND FUND
BOND FUND ---------------------- -------------------------------------
------------------------ YEAR PERIOD PERIOD
YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED JUNE ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, 30, 1995 JANUARY 19,
1996 1995 1996 1995 1996 (A) 1995 (B)(C)
----------- ----------- --------- ----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued......... $ 73,620 $ 74,654 $ 100,593 $ 84,681 $ 6,010 $ 2,966 $ 12,790
Dividends reinvested................ 1,311 1,137 835 805 30 6 340
Cost of shares redeemed............. (69,859) (50,142) (45,206) (52,518) (8,690) (14,827) (29,620)
----------- ----------- --------- ----------- ----------- ----------- -----------
Change in net assets from Fiduciary
Share transactions................ $ 5,072 $ 25,649 $ 56,222 $ 32,968 $ (2,650) $ (11,855) $ (16,490)
----------- ----------- --------- ----------- ----------- ----------- -----------
----------- ----------- --------- ----------- ----------- ----------- -----------
CLASS A SHARES:
Proceeds from shares issued......... $ 4,157 $ 1,577 $ 18,884 $ 2,951 $ 475 $ 10,642
Dividends reinvested................ 246 176 699 470 186 111
Cost of shares redeemed............. (3,426) (1,755) (5,106) (2,721) (1,412) (1,470)
----------- ----------- --------- ----------- ----------- -----------
Change in net assets from Class A
Share transactions................ $ 977 $ (2) $ 14,477 $ 700 $ (751) $ 9,283
----------- ----------- --------- ----------- ----------- -----------
----------- ----------- --------- ----------- ----------- -----------
CLASS B SHARES:
Proceeds from shares issued......... $ 1,508 $ 742 $ 15,686 $ 4,660 $ 1,383 $ 80
Dividends reinvested................ 46 24 386 215 8
Cost of shares redeemed............. (218) (215) (1,041) (1,441) (7)
----------- ----------- --------- ----------- ----------- -----------
Change in net assets from Class B
Share transactions................ $ 1,336 $ 551 $ 15,031 $ 3,434 $ 1,384 $ 80
----------- ----------- --------- ----------- ----------- -----------
----------- ----------- --------- ----------- ----------- -----------
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.............................. 6,859 7,168 10,330 8,830 593 307 1,300
Reinvested.......................... 121 109 86 84 4 1 35
Redeemed............................ (6,488) (4,824) (4,649) (5,532) (856) (1,453) (3,103)
----------- ----------- --------- ----------- ----------- ----------- -----------
Change in Fiduciary Shares.......... 492 2,453 5,767 3,382 (259) (1,145) (1,768)
----------- ----------- --------- ----------- ----------- ----------- -----------
----------- ----------- --------- ----------- ----------- ----------- -----------
CLASS A SHARES:
Issued.............................. 387 148 1,933 304 48 1,026
Reinvested.......................... 22 17 72 49 18 11
Redeemed............................ (316) (167) (522) (283) (140) (149)
----------- ----------- --------- ----------- ----------- -----------
Change in Class A Shares............ 93 (2) 1,483 70 (74) 888
----------- ----------- --------- ----------- ----------- -----------
----------- ----------- --------- ----------- ----------- -----------
CLASS B SHARES:
Issued.............................. 138 71 1,612 485 138 8
Reinvested.......................... 5 2 40 22 1
Redeemed............................ (20) (21) (108) (152) (1)
----------- ----------- --------- ----------- ----------- -----------
Change in Class B Shares............ 123 52 1,544 355 138 8
----------- ----------- --------- ----------- ----------- -----------
----------- ----------- --------- ----------- ----------- -----------
</TABLE>
- ------------
<TABLE>
<C> <S>
(a) For the period from January 20, 1995 (date merged) to June 30, 1996.
</TABLE>
<TABLE>
<C> <S>
(b) Prior to January 20, 1995, the Kentucky Municipal Bond Fund Shares were unclassified.
(c) For the period from February 1, 1994 to January 19, 1995.
</TABLE>
CONTINUED
- ----48
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands)
OHIO MUNICIPAL LOUISIANA MUNICIPAL
BOND FUND BOND FUND (A)
-------------------- -------------------------------
YEAR YEAR YEAR
ENDED ENDED SEVEN MONTHS ENDED
JUNE 30, JUNE 30, ENDED JUNE 30, NOVEMBER 30,
1996 1995 1996 1995 (D)
--------- --------- --------------- --------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES (B):
Proceeds from shares issued...................................... $ 16,537 $ 9,413 6,255
Proceeds from shares issued in conversion from Class A Shares.... -- -- 137,607(b)
Dividends reinvested............................................. 245 298 --
Cost of shares redeemed.......................................... (16,421) (23,281) (6,804)
--------- --------- ---------------
Change in net assets from Fiduciary Share transactions........... $ 361 $ (13,570) $ 137,058
--------- --------- ---------------
--------- --------- ---------------
CLASS A SHARES:
Proceeds from shares issued...................................... $ 5,812 $ 1,338 $ 5,814 $ 25,634
Dividends reinvested............................................. 479 486 889 1,948
Cost of shares redeemed.......................................... (1,813) (4,694) (19,453) (32,701)
Cost of shares redeemed in conversion to Fiduciary Shares........ -- -- (137,607)(b) --
--------- --------- --------------- --------------
Change in net assets from Class A Share transactions............. $ 4,478 $ (2,870) $ (150,357) $ (5,119)
--------- --------- --------------- --------------
--------- --------- --------------- --------------
CLASS B SHARES:
Proceeds from shares issued...................................... $ 6,113 $ 1,515 $ 1,390 $ 1,934
Dividends reinvested............................................. 166 86 40 31
Cost of shares redeemed.......................................... (584) (451) (278) (112)
--------- --------- --------------- --------------
Change in net assets from Class B Share transactions............. $ 5,695 $ 1,150 $ 1,152 $ 1,853
--------- --------- --------------- --------------
--------- --------- --------------- --------------
SHARE TRANSACTIONS:
FIDUCIARY SHARES (B):
Issued........................................................... 1,528 892 195
Issued in conversion from Class A Shares......................... -- -- 13,761(b)
Reinvested....................................................... 23 28 --
Redeemed......................................................... (1,523) (2,223) (250)
--------- --------- ---------------
Change in Fiduciary Shares....................................... 28 (1,303) 13,706
--------- --------- ---------------
--------- --------- ---------------
CLASS A SHARES:
Issued........................................................... 539 126 545 2,426
Issued in restatement of net asset value(c)...................... -- -- 1,239 --
Reinvested....................................................... 44 46 85 186
Redeemed......................................................... (167) (451) (1,869) (3,127)
Redeemed in conversion to Fiduciary Shares....................... -- -- (13,761)(b)
--------- --------- --------------- --------------
Change in Class A Shares......................................... 416 (279) (13,761) (515)
--------- --------- --------------- --------------
--------- --------- --------------- --------------
CLASS B SHARES:
Issued........................................................... 561 142 130 183
Issued in restatement of net asset value(c)...................... -- -- 22 --
Reinvested....................................................... 15 8 4 3
Redeemed......................................................... (54) (43) (27) (10)
--------- --------- --------------- --------------
Change in Class B Shares......................................... 522 107 129 176
--------- --------- --------------- --------------
--------- --------- --------------- --------------
</TABLE>
- ------------
<TABLE>
<C> <S>
(a) Upon reorganizing as a fund of The One Group, The Paragon Louisiana Tax-Free Fund became the Louisiana Municipal Bond
Fund. Capital and share transactions for the period prior to March 26, 1996 represent the Paragon Louisiana Tax-Free
Fund.
</TABLE>
<TABLE>
<C> <S>
(b) Fiduciary Shares of the Louisiana Municipal Bond Fund commenced operations March 26, 1996 upon the conversion of
certain Class A Shares to Fiduciary Shares.
</TABLE>
<TABLE>
<C> <S>
(c) Pursuant to its reorganization as a fund of The One Group, the Louisiana Municipal Bond Fund issued additional shares
at the close of business March 25, 1996 as a result of restatement of the net asset values of Class A Shares from
$10.67 to $10.00 and Class B Shares from $10.70 to $10.00.
</TABLE>
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and Banc One Investment Advisors Corporation (the "Adviser") are
parties to an investment advisory agreement under which the Adviser is
entitled to receive an annual fee, computed daily and paid monthly, equal
CONTINUED
49----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
to the following percentages of the Funds' average net assets: 0.60% of the
Intermediate Tax-Free Bond Fund, Kentucky Municipal Bond Fund, the Ohio
Municipal Bond Fund and the Louisiana Municipal Bond Fund; and 0.45% of the
Municipal Income Fund.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administrative agreement under which the Administrator provides services for
a fee that is computed daily and payable monthly, at an annual rate of 0.20%
on the first $1.5 billion of Trust net assets (excluding the Treasury Only
Money Market Fund and the Government Money Market Fund--the "Institutional
Money Market Funds"); 0.18% on the next $0.5 billion of Trust net assets
(excluding the Institutional Money Market Funds); and 0.16% of Trust net
assets (excluding the Institutional Money Market Funds) over $2 billion. The
Adviser also serves as Sub-Administrator to each fund of the Trust, pursuant
to an agreement between the Administrator and the Adviser. Pursuant to this
agreement, the Adviser performs many of the Administrator's duties, for
which the Advisor receives a fee paid by the Administrator. Prior to
November 30, 1995, The Shareholder Services Group d/b/a 440 Financial served
as administrator of each Fund (except Louisiana Municipal Bond Fund) under
essentially the same terms as the current administration agreement. Prior to
March 26, 1996, Goldman Sachs Asset Management served as administrator of
Paragon. The terms of the current administration agreement are substantially
the same as the former administration agreement.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A and Class B Shares are subject to a distribution
and shareholder services plan (the "Plan") pursuant to Rule 12b-1 under the
1940 Act. As provided in the Plans, the Trust will pay the Distributor a fee
of 0.35% of the average daily net assets of Class A Shares of each of the
Funds and 1.00% of the average daily net assets of the Class B Shares of
each of the Funds. Currently, the Distributor has voluntarily agreed to
limit payments under the Plans to 0.25% and 0.90% of average daily net
assets of the Class A Shares and Class B Shares, respectively, of each Fund.
Up to 0.25% of the fees payable under the Plans may be used as compensation
for shareholder services by the Distributor and/or financial institutions
and intermediaries. Fees paid under the Plans may be applied by the
Distributor toward (i) compensation for its services in connection with
distribution assistance or provision of shareholder services; or (ii)
payments to financial institutions and intermediaries such as banks,
(including affiliates of the Adviser), brokers, dealers and other
institutions, including the Distributor's affiliates and subsidiaries as
compensation for services or reimbursement of expenses incurred in
connection with distribution assistance or provision of shareholder
services. Fiduciary Class Shares of each Fund are offered without
distribution fees. For the year ended June 30, 1996, the Distributor
received $1,493,085 from commissions earned on sales of Class A Shares and
redemptions of Class B Shares, of which the Distributor reallowed $1,431,454
to affiliated broker/dealers of the Fund.
Prior to January 2, 1996, Premier Investment Advisors, L.L.C. ("Premier")
served as investment adviser and Goldman Sachs & Company served as
distributor to Paragon. Pursuant to the approval of the Board of Trustees of
Paragon on October 31, 1995 and its shareholders on December 20, 1995,
Paragon entered into an investment advisory agreement with the Adviser and a
distribution agreement with the Distributor effective January 2, 1996. The
terms of the investment advisory agreements with Premier and with the
Adviser and the distribution agreements with Goldman Sachs & Company and the
Distributor were substantially the same.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
CONTINUED
- ----50
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
The Adviser, Administrator and Distributor voluntarily agreed to waive a
portion of their fees and to reimburse the Funds for certain expenses. For
the period ended June 30, 1996, fees in the following amounts were waived or
reimbursed to the Funds (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT 12B-1 FEES WAIVED
ADVISORY FEES ADMINISTRATION
WAIVED/ FEES WAIVED/ ------------------------
REIMBURSED REIMBURSED CLASS A CLASS B
----------------- ----------------- ----------- -----------
<S> <C> <C> <C> <C>
Intermediate Tax-Free Bond Fund................................. $ 770 $ -- $ 7 $ 2
Municipal Income Fund........................................... 388 87 18 14
Kentucky Municipal Bond Fund.................................... 133 3 9 1
Ohio Municipal Bond Fund........................................ 348 27 14 6
Louisiana Municipal Bond Fund*.................................. 170 32 15 1
</TABLE>
------------
* For the period December 1, 1995 to June 30, 1996.
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the period
ended June 30, 1996 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C> <C>
Intermediate Tax-Free Bond Fund......................................................... $ 258,530 $ 243,360
Municipal Income Fund................................................................... 286,477 199,431
Kentucky Municipal Bond Fund............................................................ 6,605 8,569
Ohio Municipal Bond Fund................................................................ 33,151 23,310
Louisiana Municipal Bond Fund *......................................................... 32,302 53,078
</TABLE>
------------
* For the period December 1, 1995 to June 30, 1996.
6. FINANCIAL INSTRUMENTS:
Investing in financial instruments such as written options, futures,
structured notes and indexed securities involves risk in excess of the
amounts reflected in the Statement of Assets and Liabilities. The face or
contract amounts reflect the extent of the involvement the Funds have in the
particular class of instrument. Risks associated with these instruments
include an imperfect correlation between the movements in the price of the
instruments and the price of the underlying securities and interest rates,
an illiquid secondary market for the instruments or inability of
counterparties to perform under the terms of the contract. The Funds enter
into these contracts primarily as a means to hedge against adverse
fluctuation in securities.
7. CONCENTRATION OF CREDIT RISK:
The Kentucky, Ohio and Louisiana Municipal Bond Funds invest in primarily
debt obligations issued by the respective States and their political
subdivisions, agencies and public authorities to obtain funds for various
public purposes. The Funds are more susceptible to economic and political
factors adversely affecting issuers of the state's specific municipal
securities than are municipal bond funds that are not concentrated in these
issuers to the same extent.
CONTINUED
51----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
8. FEDERAL TAX INFORMATION (UNAUDITED):
The accompanying table below details distributions from long-term capital
gains for the following fund for the period ended June 30, 1996 (amounts in
thousands):
<TABLE>
<CAPTION>
DISTRIBUTIONS
---------------
<S> <C>
Intermediate Tax-Free Bond Fund......................................................................... $ 714
</TABLE>
At June 30, 1996, the following Funds have capital loss carryforwards which
are available to offset future capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD EXPIRES
--------------- -----------
<S> <C> <C>
Municipal Income Bond Fund.................................................................. $ 2,173 2003
Kentucky Municipal Bond Fund................................................................ 483 2004
Kentucky Municipal Bond Fund................................................................ 1,332 2003
Ohio Municipal Bond Fund.................................................................... 1,463 2004
Ohio Municipal Bond Fund.................................................................... 2,319 2003
Louisiana Municipal Bond Fund............................................................... 268 2004
Louisiana Municipal Bond Fund............................................................... 48 2003
Louisiana Municipal Bond Fund............................................................... 282 2002
</TABLE>
Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal
year. The following deferred losses will be treated as arising on the first
day of the fiscal year ended June 30, 1997 (amounts in thousands):
<TABLE>
<CAPTION>
POST-OCTOBER
CAPITAL LOSSES
---------------
<S> <C>
Municipal Income Bond Fund............................................................................ $ 5,776
Ohio Municipal Bond Fund.............................................................................. 183
</TABLE>
The Funds designate the following exempt-interest dividends for the taxable year
ended June 30, 1996:
<TABLE>
<CAPTION>
INTERMEDIATE KENTUCKY OHIO LOUISIANA
TAX-FREE MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND INCOME FUND BOND FUND BOND FUND BOND FUND
------------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Exempt-interest dividends:
Fiduciary Shares (000)................................ $ 6,841 $ 10,344 $ 1,424 $ 2,836 $ 1,716
Class A Shares (000).................................. 210 850 367 463 3,747
Class B Shares (000).................................. 41 568 21 165 63
Exempt-interest dividends per share:
Fiduciary Shares...................................... 0.329 0.476 0.493 0.386 0.449
Class A Shares........................................ 0.316 0.462 0.493 0.370 0.443
Class B Shares........................................ 0.270 0.405 0.347 0.326 0.378
</TABLE>
CONTINUED
- ----52
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
The percentage break-down of exempt-interest income by state for the Fund's
taxable year ended June 30, 1996 (March 26, 1996 through June 30, 1996 for
the Louisiana Municipal Bond Fund) is as follows:
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE MUNICIPAL INCOME KENTUCKY MUNICIPAL OHIO MUNICIPAL
BOND FUND FUND BOND FUND BOND FUND
------------------------ -------------------- ---------------------- ------------------
<S> <C> <C> <C> <C>
Alaska.................. 3.3% 1.9% -- --
Arizona................. 3.0% 0.4% -- --
Arkansas................ 0.8% 4.7% -- --
California.............. 5.9% 4.8% -- --
Colorado................ 8.6% 16.6% -- --
Connecticut............. 0.7% 0.1% -- --
Delaware................ 0.9% -- -- --
District of Columbia.... 0.5% -- -- --
Florida................. 3.3% 7.4% -- --
Georgia................. 1.5% 1.9% -- --
Hawaii.................. 0.4% -- -- --
Idaho................... 1.6% -- -- --
Illinois................ 10.6% 5.4% -- --
Indiana................. 3.4% 1.8% -- --
Iowa.................... 1.6% 1.9% -- --
Kansas.................. 1.0% 3.7% -- --
Kentucky................ 0.2% 0.1% 100.0% --
Louisiana............... 0.3% 2.5% -- --
Maine................... -- 0.7% -- --
Maryland................ 0.7% -- -- --
Massachusetts........... 1.7% 1.2% -- 1.2%
Michigan................ 0.6% 2.4% -- --
Minnesota............... 1.9% 0.9% -- --
Mississippi............. 0.1% 2.0% -- --
Missouri................ 1.5% 3.5% -- 0.6%
Montana................. 0.1% 1.5% -- --
Nebraska................ 1.3% 0.5% -- --
Nevada.................. 2.2% 0.7% -- --
New Hampshire........... 0.8% 0.1% -- --
New Jersey.............. -- 0.9% -- --
New Mexico.............. 5.0% 2.2% -- --
New York................ 1.1% 1.7% -- --
North Carolina.......... 0.0% 1.2% -- --
North Dakota............ 0.3% 0.8% -- --
Ohio.................... 1.3% 1.6% -- 96.9%
Oklahoma................ 0.1% 0.9% -- --
Oregon.................. 2.3% 0.1% -- --
Pennsylvania............ 3.0% 2.2% -- --
Puerto Rico............. 0.5% 0.6% -- --
Rhode Island............ 0.9% 0.6% -- --
South Carolina.......... 0.6% 1.9% -- --
South Dakota............ 1.2% 2.1% -- --
Tennessee............... 0.7% 2.0% -- --
Texas................... 11.0% 10.8% -- 0.1%
Utah.................... 2.3% 0.9% -- --
Vermont................. 0.1% -- -- --
Virginia................ 2.3% 0.4% -- --
Washington.............. 4.4% 0.2% -- 1.1%
West Virginia........... 1.5% 0.3% -- --
Wisconsin............... 0.1% 0.7% -- 0.1%
Wyoming................. 2.8% 1.2% -- --
----- ----- ----- -----
100.0% 100.0% 100.0% 100.0%
----- ----- ----- -----
----- ----- ----- -----
<CAPTION>
LOUISIANA MUNICIPAL
BOND FUND
----------------------
<S> <C>
Alaska.................. --
Arizona................. --
Arkansas................ --
California.............. --
Colorado................ --
Connecticut............. --
Delaware................ --
District of Columbia.... --
Florida................. --
Georgia................. --
Hawaii.................. --
Idaho................... --
Illinois................ --
Indiana................. --
Iowa.................... --
Kansas.................. --
Kentucky................ --
Louisiana............... 100.0%
Maine................... --
Maryland................ --
Massachusetts........... --
Michigan................ --
Minnesota............... --
Mississippi............. --
Missouri................ --
Montana................. --
Nebraska................ --
Nevada.................. --
New Hampshire........... --
New Jersey.............. --
New Mexico.............. --
New York................ --
North Carolina.......... --
North Dakota............ --
Ohio.................... --
Oklahoma................ --
Oregon.................. --
Pennsylvania............ --
Puerto Rico............. --
Rhode Island............ --
South Carolina.......... --
South Dakota............ --
Tennessee............... --
Texas................... --
Utah.................... --
Vermont................. --
Virginia................ --
Washington.............. --
West Virginia........... --
Wisconsin............... --
Wyoming................. --
-----
100.0%
-----
-----
</TABLE>
CONTINUED
53----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1996
9. REORGANIZATIONS:
The Trust entered an Agreement and Plan of Reorganization with Paragon
pursuant to which all of the assets and liabilities of each Paragon Fund
transferred to a fund of the One Group in exchange for shares of the
corresponding fund of the One Group. The Paragon Louisiana Tax-Free Fund
transferred its assets and liabilities to the One Group Louisiana Municipal
Bond Fund. The reorganization, which qualified as tax-free exchange for
federal income tax purposes, was completed at the close of business March
25, 1996 following approval by shareholders of Paragon at a special
shareholder meeting. The following is a summary of shares outstanding, net
assets net asset value per share and unrealized appreciation immediately
before and after the reorganization (amounts in thousands except net asset
value):
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
------------------------------ ---------------
PARAGON LOUISIANA LOUISIANA
LOUISIANA MUNICIPAL BOND MUNICIPAL BOND
TAX-FREE FUND FUND FUND
-------------- -------------- ---------------
<S> <C> <C> <C>
Shares.................................................................... 18,757 -- 20,018*
Net Assets................................................................ $ 200,185 -- $ 200,185
Net Asset Value:
Fiduciary............................................................... -- $ 10.00*
Class A................................................................. 10.67 -- 10.00*
Class B................................................................. 10.70 -- 10.00*
Unrealized Appreciation................................................... $ 4,349 -- $ 4,349
</TABLE>
------------
* Pursuant to its reorganization as a fund of The One Group, the Fund issued
additional shares at the close of business March 25, 1996 as a result of
restatement of the net asset values of Class A Shares from $10.67 to
$10.00 and Class B Shares from $10.70 to $10.00.
On October 7, 1994, the Board of Trustees approved an agreement and plan of
reorganization for the acquisition of the Trademark Funds by the Trust. Under
the agreement and plan of reorganization, all assets and liabilities of the
Trademark Kentucky Municipal Bond Fund (the "Acquired Fund") were acquired by
the Kentucky Municipal Bond Fund, (the "Acquiring Fund"), in exchange for
shares of the Acquiring Fund. The reorganization, which qualified as a
tax-free exchange for federal income tax purposes, was completed following
approval by the shareholders of the Acquired Fund. The following is a summary
of shares outstanding, net assets, unrealized depreciation and net asset
value per share immediately before and after the reorganization (amounts in
thousands except net asset value):
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
-------------------------------- ---------------
TRADEMARK KENTUCKY KENTUCKY KENTUCKY
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------------- ----------- ---------------
<S> <C> <C> <C>
Shares............................................................ 4,422* -- 4,422
Net Assets:
Fiduciary....................................................... $ 41,953* $ -- $ 41,953
Net Asset Value:
Fiduciary....................................................... $ 9.49* $ -- $ 9.49
Unrealized Depreciation........................................... $ (2,604) $ -- $ (2,604)
</TABLE>
------------
* Before the reorganization, the Acquired Funds offered only one class of
shares.
CONTINUED
- ----54
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE BOND FUND
------------------------------------------------------------------------
FIDUCIARY
------------------------------------------------------------------------
YEARS ENDED JUNE 30,
------------------------------------------------------------------------
1996 1995 1994 1993 1992
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................. $ 10.64 $ 10.49 $ 11.15 $ 10.69 $ 10.28
------------ ------------ ------------ ------------ ------------
Investment Activities
Net investment income........................... 0.52 0.54 0.52 0.53 0.55
Net realized and unrealized gains (losses) from
investments................................... 0.04 0.15 (0.52) 0.49 0.42
------------ ------------ ------------ ------------ ------------
Total from Investment Activities.............. 0.56 0.69 0.00 1.02 0.97
------------ ------------ ------------ ------------ ------------
Distributions
Net investment income........................... (0.51) (0.54) (0.53) (0.52) (0.55)
In excess of net investment income.............. -- -- (0.01) -- --
Net realized gains.............................. (0.02) -- (0.01) (0.04) (0.01)
In excess of net realized gains................. -- -- (0.11) -- --
------------ ------------ ------------ ------------ ------------
Total Distributions........................... (0.53) (0.54) (0.66) (0.56) (0.56)
------------ ------------ ------------ ------------ ------------
NET ASSET VALUE,
END OF PERIOD................................... $ 10.67 $ 10.64 $ 10.49 $ 11.15 $ 10.69
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total Return (Excludes Sales Charge).............. 5.39% 6.75% (0.11)% 9.79% 9.54%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $ 217,201 $ 211,229 $ 182,611 $ 166,489 $ 142,672
Ratio of expenses to average net assets......... 0.54% 0.53% 0.48% 0.54% 0.55%
Ratio of net investment income to average net
assets........................................ 4.87% 5.17% 4.78% 4.93% 5.28%
Ratio of expenses to average net assets*........ 0.87% 0.88% 0.84% 0.94% 1.07%
Ratio of net investment income to average net
assets*....................................... 4.54% 4.82% 4.42% 4.53% 4.77%
Portfolio Turnover (a).......................... 111.58% 199.76% 105.98% 31.99% 11.50%
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE BOND FUND
------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------
YEARS ENDED JUNE 30,
------------------------------------------------------------------------
1996 1995 1994 1993 1992 (A)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................. $ 10.63 $ 10.48 $ 11.14 $ 10.69 $ 10.57
------------ ------------ ------------ ------ ------
Investment Activities
Net investment income........................... 0.50 0.51 0.50 0.55 0.15
Net realized and unrealized gains (losses) from
investments................................... 0.05 0.15 (0.52) 0.44 0.18
------------ ------------ ------------ ------ ------
Total from Investment Activities.............. 0.55 0.66 (0.02) 0.99 0.33
------------ ------------ ------------ ------ ------
Distributions
Net investment income........................... (0.49) (0.49) (0.52) (0.50) (0.21)
In excess of net investment income.............. -- (0.02) (0.01) -- --
Net realized gains.............................. (0.02) -- -- (0.04) --
In excess of net realized gains................. -- -- (0.11) -- --
------------ ------------ ------------ ------ ------
Total Distributions........................... (0.51) (0.51) (0.64) (0.54) (0.21)
------------ ------------ ------------ ------ ------
NET ASSET VALUE,
END OF PERIOD................................... $ 10.67 $ 10.63 $ 10.48 $ 11.14 $ 10.69
------------ ------------ ------------ ------ ------
------------ ------------ ------------ ------ ------
Total Return (Excludes Sales Charge).............. 5.28% 6.49% (0.33)% 9.47% 8.68%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $ 6,622 $ 5,614 $ 5,556 $ 5,480 $ 5
Ratio of expenses to average net assets......... 0.79% 0.78% 0.73% 0.71% 1.02%(b)
Ratio of net investment income to average net
assets........................................ 4.62% 4.91% 4.57% 4.77% 4.91%(b)
Ratio of expenses to average net assets*........ 1.22% 1.23% 1.19% 1.27% 1.32%(b)
Ratio of net investment income to average net
assets*....................................... 4.19% 4.46% 4.11% 4.21% 4.61%(b)
Portfolio Turnover (c).......................... 111.58% 199.76% 105.98% 31.99% 11.50%
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class A Shares commenced offering on February 18, 1992.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----56
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE BOND FUND
------------------------------------------
CLASS B
------------------------------------------
YEARS ENDED JUNE 30,
------------------------------------------
1996 1995 1994 (A)
------------ ------------ ------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................. $ 10.65 $ 10.50 $ 11.18
------ ------ ------
Investment Activities
Net investment income........................... 0.43 0.46 0.17
Net realized and unrealized gains (losses) from
investments................................... 0.04 0.14 (0.67)
------ ------ ------
Total from Investment Activities.............. 0.47 0.60 (0.50)
------ ------ ------
Distributions
Net investment income........................... (0.42) (0.45) (0.17)
In excess of net investment income.............. -- -- --
Net realized gains.............................. (0.02) -- --
In excess of net realized gains................. -- -- (0.01)
------ ------ ------
Total Distributions........................... (0.44) (0.45) (0.18)
------ ------ ------
NET ASSET VALUE,
END OF PERIOD................................... $ 10.68 $ 10.65 $ 10.50
------ ------ ------
------ ------ ------
Total Return (Excludes Sales Charge).............. 4.48% 5.89% (4.48)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $ 2,439 $ 1,116 $ 549
Ratio of expenses to average net assets......... 1.44% 1.43% 1.40%(b)
Ratio of net investment income to average net
assets........................................ 3.97% 4.29% 4.08%(b)
Ratio of expenses to average net assets*........ 1.87% 1.88% 1.85%(b)
Ratio of net investment income to average net
assets*....................................... 3.54% 3.84% 3.63%(b)
Portfolio Turnover (d).......................... 111.58% 199.76% 105.98%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class B Shares commenced offering on January 14, 1994.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
-------------------------------------------------------------
FIDUCIARY
-------------------------------------------------------------
YEARS ENDED JUNE 30,
-------------------------------------------------------------
1996 1995 1994 1993 (A)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 9.69 $ 9.66 $ 10.11 $ 10.00
------------- ------------- ------------- -------------
Investment Activities
Net investment income..................................... 0.56 0.57 0.56 0.19
Net realized and unrealized gains (losses) from
investments............................................. (0.03) 0.03 (0.42) 0.11
------------- ------------- ------------- -------------
Total from Investment Activities........................ 0.53 0.60 0.14 0.30
------------- ------------- ------------- -------------
Distributions
Net investment income..................................... (0.56) (0.57) (0.56) (0.19)
In excess of net realized gains........................... -- -- (0.03) --
------------- ------------- ------------- -------------
Total Distributions..................................... (0.56) (0.57) (0.59) (0.19)
------------- ------------- ------------- -------------
NET ASSET VALUE,
END OF PERIOD............................................. $ 9.66 $ 9.69 $ 9.66 $ 10.11
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Total Return (Excludes Sales Charge)........................ 5.54% 6.46% 1.36% 5.18%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 241,115 $ 185,916 $ 152,763 $ 40,777
Ratio of expenses to average net assets................... 0.56% 0.56% 0.54% 0.54%(b)
Ratio of net investment income to average net assets...... 5.70% 6.02% 5.61% 5.66%(b)
Ratio of expenses to average net assets*.................. 0.76% 0.74% 0.71% 1.01%(b)
Ratio of net investment income to average net assets*..... 5.50% 5.84% 5.44% 5.19%(b)
Portfolio Turnover (c).................................... 83.17% 66.02% 101.48% 66.12%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) The Fund commenced operations on February 9, 1993.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----58
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
--------------------------------------------
CLASS A
--------------------------------------------
YEARS ENDED JUNE 30,
--------------------------------------------
1996 1995 1994 1993 (A)
--------- --------- --------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................................................. $ 9.72 $ 9.67 $ 10.12 $ 10.06
--------- --------- --------- -----------
Investment Activities
Net investment income........................................................... 0.55 0.55 0.55 0.19
Net realized and unrealized gains (losses) from investments..................... (0.04) 0.05 (0.43) 0.05
--------- --------- --------- -----------
Total from Investment Activities.............................................. 0.51 0.60 0.12 0.24
--------- --------- --------- -----------
Distributions
Net investment income........................................................... (0.54) (0.55) (0.54) (0.18)
In excess of net realized gains................................................. -- -- (0.03) --
--------- --------- --------- -----------
Total Distributions........................................................... (0.54) (0.55) (0.57) (0.18)
--------- --------- --------- -----------
NET ASSET VALUE,
END OF PERIOD................................................................... $ 9.69 $ 9.72 $ 9.67 $ 10.12
--------- --------- --------- -----------
--------- --------- --------- -----------
Total Return (Excludes Sales Charge).............................................. 5.35% 6.21% 1.34% 6.86%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................................... $ 25,787 $ 11,462 $ 10,725 $ 4,106
Ratio of expenses to average net assets......................................... 0.81% 0.81% 0.79% 0.80%(b)
Ratio of net investment income to average net assets............................ 5.45% 5.76% 5.44% 5.71%(b)
Ratio of expenses to average net assets*........................................ 1.11% 1.09% 1.06% 1.36%(b)
Ratio of net investment income to average net assets*........................... 5.15% 5.48% 5.17% 5.15%(b)
Portfolio Turnover (c).......................................................... 83.17% 66.02% 101.48% 66.12%
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class A Shares commenced offering on February 23, 1993.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
---------------------------------
CLASS B
---------------------------------
YEARS ENDED JUNE 30,
---------------------------------
1996 1995 1994 (A)
--------- --------- -----------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................................................... $ 9.69 $ 9.62 $ 10.10
--------- --------- -----------
Investment Activities
Net investment income..................................................................... 0.47 0.49 0.24
Net realized and unrealized gains (losses) from investments............................... (0.03) 0.07 (0.48)
--------- --------- -----------
Total from Investment Activities........................................................ 0.44 0.56 (0.24)
--------- --------- -----------
Distributions
Net investment income..................................................................... (0.47) (0.49) (0.24)
--------- --------- -----------
Total Distributions..................................................................... (0.47) (0.49) (0.24)
--------- --------- -----------
NET ASSET VALUE,
END OF PERIOD............................................................................. $ 9.66 $ 9.69 $ 9.62
--------- --------- -----------
--------- --------- -----------
Total Return (Excludes Sales Charge)........................................................ 4.65% 5.58% (1.98)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................................................... $ 23,204 $ 8,326 $ 4,855
Ratio of expenses to average net assets................................................... 1.46% 1.46% 1.41%(b)
Ratio of net investment income to average net assets...................................... 4.80% 5.14% 4.95%(b)
Ratio of expenses to average net assets*.................................................. 1.76% 1.74% 1.62%(b)
Ratio of net investment income to average net assets*..................................... 4.50% 4.86% 4.74%(b)
Portfolio Turnover (d).................................................................... 83.17% 66.02% 101.48%
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class B Shares commenced offering on January 14, 1994.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----60
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY MUNICIPAL BOND FUND
------------------------------------------------------
FIDUCIARY
------------------------- FEBRUARY 1, MARCH 12,
YEAR ENDED JANUARY 20, 1994, TO 1993, TO
JUNE 30, 1995 TO JUNE JANUARY 19, JANUARY 31,
1996 30, 1995 (A) 1995 (D) 1994 (D)(E)
----------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................................. $ 9.92 $ 9.49 $ 10.45 $ 10.00
----------- ------------ ------------- ------------
Investment Activities
Net investment income........................................... 0.50 0.20 0.41 0.36
Net realized and unrealized gains from investments.............. 0.12 0.43 (0.95) 0.43
----------- ------------ ------------- ------------
Total from Investment Activities.............................. 0.62 0.63 (0.54) 0.79
----------- ------------ ------------- ------------
Distributions
Net investment income........................................... (0.50) (0.20) (0.42) (0.34)
----------- ------------ ------------- ------------
Total Distributions........................................... (0.50) (0.20) (0.42) (0.34)
----------- ------------ ------------- ------------
NET ASSET VALUE,
END OF PERIOD................................................... $ 10.04 $ 9.92 $ 9.49 $ 10.45
----------- ------------ ------------- ------------
----------- ------------ ------------- ------------
Total Return (Excludes Sales Charge).............................. 6.35% 6.56%(c) (5.17)%(c) 8.05%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................... $ 30,300 $ 32,520 $ 41,953 $ 64,663
Ratio of expenses to average net assets......................... 0.68% 0.65%(b) 1.03%(b) 0.70%(b)
Ratio of net investment income to average net assets............ 4.60% 4.70%(b) 4.27%(b) 4.19%(b)
Ratio of expenses to average net assets*........................ 1.02% 0.97%(b) 1.05%(b) 0.91%(b)
Ratio of net investment income to average net assets*........... 4.26% 4.38%(b) 4.25%(b) 3.98%(b)
Portfolio Turnover (f).......................................... 16.78% 19.75% 10.00% 5.00%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from date reorganized as a fund of The One Group.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Prior to reorganizing as a fund of The One Group, the Fund offered only one class of shares.
</TABLE>
<TABLE>
<C> <S>
(e) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY MUNICIPAL BOND
FUND
--------------------------
CLASS A
--------------------------
YEAR ENDED JANUARY 20,
JUNE 30, 1995 TO JUNE
1996 30, 1995 (A)
----------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................................................................. $ 9.93 $ 9.49
----------- ------
Investment Activities
Net investment income........................................................................... 0.44 0.19
Net realized and unrealized gains from investments.............................................. 0.12 0.44
----------- ------
Total from Investment Activities.............................................................. 0.56 0.63
----------- ------
Distributions
Net investment income........................................................................... (0.44) (0.19)
----------- ------
Total Distributions........................................................................... (0.44) (0.19)
----------- ------
NET ASSET VALUE,
END OF PERIOD................................................................................... $ 10.05 $ 9.93
----------- ------
----------- ------
Total Return (Excludes Sales Charge).............................................................. 5.70% 5.66%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................................................... $ 8,178 $ 8,818
Ratio of expenses to average net assets......................................................... 0.93% 0.90%(b)
Ratio of net investment income to average net assets............................................ 4.35% 4.44%(b)
Ratio of expenses to average net assets*........................................................ 1.37% 1.33%(b)
Ratio of net investment income to average net assets*........................................... 3.91% 4.01%(b)
Portfolio Turnover (d).......................................................................... 16.78% 19.75%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from date reorganized as a fund of The One Group.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<S> <S>
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----62
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY MUNICIPAL BOND
FUND
--------------------------
CLASS B
--------------------------
MARCH 16,
1995 TO
YEAR ENDED JUNE 30,
JUNE 30, 1996 1995 (A)
------------- -----------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................................................................ $ 9.87 $ 9.75
------ -----------
Investment Activities
Net investment income.......................................................................... 0.38 0.14
Net realized and unrealized gains (losses) from investments.................................... 0.13 0.12
------ -----------
Total from Investment Activities............................................................. 0.51 0.26
------ -----------
Distributions
Net investment income.......................................................................... (0.39) (0.14)
------ -----------
Total Distributions.......................................................................... (0.39) (0.14)
------ -----------
NET ASSET VALUE,
END OF PERIOD.................................................................................. $ 9.99 $ 9.87
------ -----------
------ -----------
Total Return (Excludes Sales Charge)............................................................. 5.16% 2.63%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).............................................................. $ 1,457 $ 79
Ratio of expenses to average net assets........................................................ 1.58% 1.58%(b)
Ratio of net investment income to average net assets........................................... 3.70% 3.89%(b)
Ratio of expenses to average net assets*....................................................... 2.02% 2.21%(b)
Ratio of net investment income to average net assets*.......................................... 3.26% 3.25%(b)
Portfolio Turnover (d)......................................................................... 16.78% 19.75%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class B Shares commenced offering on March 16, 1995.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
---------------------------------------------------------
FIDUCIARY
---------------------------------------------------------
YEARS ENDED JUNE 30,
---------------------------------------------------------
1996 1995 1994 1993
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.65 $ 10.58 $ 11.11 $ 10.48
------------ ------------ ------------ ------------
Investment Activities
Net investment income..................................... 0.56 0.55 0.51 0.54
Net realized and unrealized gains (losses) from
investments............................................. 0.04 0.07 (0.50) 0.62
------------ ------------ ------------ ------------
Total from Investment Activities........................ 0.60 0.62 0.01 1.16
------------ ------------ ------------ ------------
Distributions
Net investment income..................................... (0.56) (0.55) (0.52) (0.53)
In excess of net realized gains........................... -- -- (0.02) --
------------ ------------ ------------ ------------
Total Distributions..................................... (0.56) (0.55) (0.54) (0.53)
------------ ------------ ------------ ------------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.69 $ 10.65 $ 10.58 $ 11.11
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Total Return (Excludes Sales Charge)........................ 5.69% 6.07% 0.07% 11.43%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 80,611 $ 79,993 $ 93,261 $ 74,792
Ratio of expenses to average net assets................... 0.57% 0.58% 0.53% 0.55%
Ratio of net investment income to average net assets...... 5.17% 5.29% 4.76% 5.14%
Ratio of expenses to average net assets*.................. 0.95% 0.91% 0.86% 0.94%
Ratio of net investment income to average net assets*..... 4.79% 4.96% 4.43% 4.75%
Portfolio Turnover (c).................................... 24.61% 77.69% 16.77% 26.67%
<CAPTION>
1992 (A)
------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.00
------------
Investment Activities
Net investment income..................................... 0.56
Net realized and unrealized gains (losses) from
investments............................................. 0.47
------------
Total from Investment Activities........................ 1.03
------------
Distributions
Net investment income..................................... (0.55)
In excess of net realized gains........................... --
------------
Total Distributions..................................... (0.55)
------------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.48
------------
------------
Total Return (Excludes Sales Charge)........................ 10.64%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 45,199
Ratio of expenses to average net assets................... 0.63%(b)
Ratio of net investment income to average net assets...... 5.61%(b)
Ratio of expenses to average net assets*.................. 1.21%(b)
Ratio of net investment income to average net assets*..... 5.03%(b)
Portfolio Turnover (c).................................... 9.78%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) The Fund commenced operations on July 2, 1991.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----64
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------
YEARS ENDED JUNE 30,
------------------------------------------------------------------------
1996 1995 1994 1993 1992 (A)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................. $ 10.68 $ 10.61 $ 11.13 $ 10.48 $ 10.29
------------ ------------ ------------ ------------ ------
Investment Activities
Net investment income........................... 0.55 0.53 0.50 0.52 0.20
Net realized and unrealized gains (losses) from
investments................................... 0.03 0.07 (0.48) 0.64 0.21
------------ ------------ ------------ ------------ ------
Total from Investment Activities.............. 0.58 0.60 0.02 1.16 0.41
------------ ------------ ------------ ------------ ------
Distributions
Net investment income........................... (0.54) (0.51) (0.50) (0.51) (0.22)
In excess of net investment income.............. -- (0.02) (0.02) -- --
In excess of net realized gains................. -- -- (0.02) -- --
------------ ------------ ------------ ------------ ------
Total Distributions........................... (0.54) (0.53) (0.54) (0.51) (0.22)
------------ ------------ ------------ ------------ ------
NET ASSET VALUE,
END OF PERIOD................................... $ 10.72 $ 10.68 $ 10.61 $ 11.13 $ 10.48
------------ ------------ ------------ ------------ ------
------------ ------------ ------------ ------------ ------
Total Return (Excludes Sales Charge).............. 5.44% 5.79% (0.05)% 11.40% 10.85%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $ 16,507 $ 12,006 $ 14,883 $ 13,092 $ 41
Ratio of expenses to average net assets......... 0.82% 0.82% 0.78% 0.77% 1.01%(b)
Ratio of net investment income to average net
assets........................................ 4.92% 5.01% 4.63% 4.85% 5.16%(b)
Ratio of expenses to average net assets*........ 1.30% 1.25% 1.21% 1.25% 1.40%(b)
Ratio of net investment income to average net
assets*....................................... 4.44% 4.58% 4.20% 4.37% 4.77%(b)
Portfolio Turnover (c).......................... 24.61% 77.69% 16.77% 26.67% 9.78%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class A Shares commenced offering on February 18, 1992.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
65----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL
BOND FUND
------------------------------------------
CLASS B
------------------------------------------
YEARS ENDED JUNE 30,
------------------------------------------
1996 1995 1994 (A)
------------ ------------ ------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.75 $ 10.68 $ 11.31
------ ------ ------------
Investment Activities
Net investment income..................................... 0.48 0.43 0.17
Net realized and unrealized gains (losses) from
investments............................................. 0.03 0.07 (0.62)
------ ------ ------------
Total from Investment Activities........................ 0.51 0.50 (0.45)
------ ------ ------------
Distributions
Net investment income..................................... (0.47) (0.43) (0.17)
In excess of net investment income........................ -- -- (0.01)
------ ------ ------------
Total Distributions..................................... (0.47) (0.43) (0.18)
------ ------ ------------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.79 $ 10.75 $ 10.68
------ ------ ------------
------ ------ ------------
Total Return (Excludes Sales Charge)........................ 4.79% 5.17% (4.02)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 8,854 $ 3,209 $ 2,043
Ratio of expenses to average net assets................... 1.47% 1.48% 1.28%(b)
Ratio of net investment income to average net assets...... 4.27% 4.40% 4.23%(b)
Ratio of expenses to average net assets*.................. 1.95% 1.91% 1.68%(b)
Ratio of net investment income to average net assets*..... 3.79% 3.97% 3.83%(b)
Portfolio Turnover (d).................................... 24.61% 77.69% 16.77%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Class B Shares commenced offering on January 14, 1994.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----66
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA
MUNICIPAL BOND
FUND
-----------------
FIDUCIARY
-----------------
MARCH 26, 1996
THROUGH
JUNE 30, 1996 (A)
-----------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................................................................... $ 10.00
--------
Investment Activities
Net investment income................................................................................. 0.13
Net realized and unrealized losses from investments................................................... (0.07)
--------
Total from Investment Activities.................................................................... 0.06
--------
Distributions
Net investment income................................................................................. (0.13)
--------
Total Distributions................................................................................. (0.13)
--------
NET ASSET VALUE,
END OF PERIOD......................................................................................... $ 9.93
--------
--------
Total Return (Excludes Sales Charge).................................................................... 0.90%(b)(d)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................................................... $ 136,041
Ratio of expenses to average net assets............................................................... 0.71 %(c)
Ratio of net investment income to average net assets.................................................. 4.76 %(c)
Ratio of expenses to average net assets*.............................................................. 0.86 %(c)
Ratio of net investment income to average net assets*................................................. 4.61 %(c)
Portfolio Turnover (e)................................................................................ 16.72 %
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from date reorganized as a fund of The One Group.
</TABLE>
<TABLE>
<C> <S>
(b) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Represents total return for Class A Shares from December 1, 1995 through March 25, 1996 plus total return
for Fiduciary Shares for the period March 26, 1996 through June 30, 1996.
</TABLE>
<TABLE>
<C> <S>
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA MUNICIPAL BOND FUND
----------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------
SEVEN MONTHS
ENDED YEARS ENDED NOVEMBER 30,
JUNE 30, 1996 -----------------------------------------------------
(A) 1995 1994 1993 1992 1991
--------------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................. $ 10.09 $ 9.38 $ 10.27 $ 9.92 $ 9.73 $ 9.51
------- --------- --------- --------- --------- ---------
Investment Activities
Net investment income........................... 0.24 0.50 0.49 0.52 0.55 0.56
Net realized and unrealized gains (losses) from
investments................................... (0.16) 0.71 (0.79) 0.42 0.26 0.22
------- --------- --------- --------- --------- ---------
Total from Investment Activities.............. 0.08 1.21 (0.30) 0.94 0.82 0.78
------- --------- --------- --------- --------- ---------
Distributions
Net investment income........................... (0.24) (0.50) (0.49) (0.52) (0.55) (0.56)
Net realized gains.............................. -- -- (0.10) (0.07) (0.07) --
------- --------- --------- --------- --------- ---------
Total Distributions........................... (0.24) (0.50) (0.59) (0.59) (0.62) (0.56)
------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD................................... $ 9.93 $ 10.09 $ 9.38 $ 10.27 $ 9.92 $ 9.73
------- --------- --------- --------- --------- ---------
------- --------- --------- --------- --------- ---------
Total Return (Excludes Sales Charge).............. 0.84%(c) 13.11% (2.97)% 9.65% 8.64% 8.45%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $ 53,479 $ 206,119 $ 196,820 $ 196,534 $ 135,692 $ 88,503
Ratio of expenses to average net assets......... 0.69 (b) 0.62% 0.65% 0.62% 0.58% 0.61%
Ratio of net investment income to average net
assets........................................ 4.71 (b) 5.07% 4.97% 5.07% 5.70% 5.86%
Ratio of expenses to average net assets*........ 0.86 (b) 0.77% 0.80% 0.78% 0.83% 0.86%
Ratio of net investment income to average net
assets*....................................... 4.54 (b) 4.92% 4.82% 4.91% 5.45% 5.61%
Portfolio Turnover (d).......................... 16.72 % 28.00% 24.00% 25.00% 32.00% 35.00%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Upon reorganizing as a fund of The One Group, the Paragon Louisiana Tax-Free Fund became the Louisiana
Municipal Bond Fund. Financial highlights for the periods prior to March 26, 1996 represent the Paragon
Louisiana Tax-Free Fund. The per share data for the periods prior to March 26, 1996 have been restated to
reflect the impact of restatement of net asset value from $10.67 to $10.00 effective March 26, 1996.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----68
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA MUNICIPAL BOND FUND
-----------------------------------------------
CLASS B
-----------------------------------------------
SEVEN MONTHS YEAR SEPTEMBER 16,
ENDED ENDED 1994 THROUGH
JUNE 30, NOVEMBER 30, NOVEMBER 30,
1996 (A) 1995 1994 (B)
--------------- -------------- --------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.09 $ 9.36 $ 9.73
------- -------------- --------------
Investment Activities
Net investment income 0.21 0.42 0.08
Net realized and unrealized gains (losses) from investments............. (0.16) 0.73 (0.37)
------- -------------- --------------
Total from Investment Activities...................................... 0.05 1.15 (0.29)
------- -------------- --------------
Distributions
Net investment income................................................... (0.21) (0.42) (0.08)
------- -------------- --------------
Total Distributions................................................... (0.21) (0.42) (0.08)
------- -------------- --------------
NET ASSET VALUE,
END OF PERIOD........................................................... $ 9.93 $ 10.09 $ 9.36
------- -------------- --------------
------- -------------- --------------
Total Return (Excludes Sales Charge)...................................... 0.48%(d) 12.52 % 2.94 %(d)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 3,223 $ 2,115 $ 204
Ratio of expenses to average net assets................................. 1.50 (c) 1.37 % 1.41 %(c)
Ratio of net investment income to average net assets.................... 3.98 (c) 4.27 % 4.45 %(c)
Ratio of expenses to average net assets*................................ 1.70 (c) 1.52 % 1.56 %(c)
Ratio of net investment income to average net assets*................... 3.78 (c) 4.12 % 4.30 %(c)
Portfolio Turnover (e).................................................. 16.72 % 28.00 % 24.00 %
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Upon reorganizing as a fund of The One Group, the Paragon Louisiana Tax-Free Fund became the Louisiana
Municipal Bond Fund. Financial highlights for the periods prior to March 26, 1996 represent the Paragon
Louisiana Tax-Free Fund. The per share data for the periods prior to March 26, 1996 have been restated to
reflect the impact of restatement of net asset value from $10.70 to $10.00 effective March 26, 1996.
</TABLE>
<TABLE>
<C> <S>
(b) Class B Shares commenced offering September 16, 1994.
</TABLE>
<TABLE>
<C> <S>
(c) Annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69----
<PAGE>
- --------------------------------------------------------------------------------
Report of Independent Accountants
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1996
To the Shareholders and Board of Trustees of
The One Group Family of Mutual Funds:
We have audited the accompanying statements of assets and liabilities of the
Intermediate Tax-Free Bond Fund, the Municipal Income Fund (formally the
Tax-Free Bond Fund), the Kentucky Municipal Bond Fund, the Ohio Municipal Bond
Fund and the Louisiana Municipal Bond Fund (five series of The One Group Family
of Mutual Funds), including the schedules of portfolio investments, as of June
30, 1996, and the related statements of operations, statements of changes in net
assets and the financial highlights for each period presented except as noted in
the next paragraph. These financial statements and financial highlights are the
responsibility of The One Group Family of Mutual Funds' management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
The Kentucky Municipal Bond Fund's statement of changes in net assets for the
period from February 1, 1994 to January 19, 1995 and the financial highlights
for the period from February 1, 1994 to January 19, 1995 and the period from
March 12, 1993 (commencement of operations) to January 31, 1994 were audited by
other auditors whose report dated April 6, 1995 expressed an unqualified opinion
on those financial statements and financial highlights. The Louisiana Municipal
Bond Fund's statement of changes in net assets for each of the two years in the
period ended November 30, 1995 and the financial highlights for each of the five
years in the period ended November 30, 1995 were audited by other auditors,
whose report dated January 19, 1996 expressed an unqualified opinion on those
financial statements and financial highlights.
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 and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996 by correspondence with the custodian and brokers. 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, except as noted in the second paragraph, present fairly, in all material
respects, the financial position of the Intermediate Tax-Free Bond Fund, the
Municipal Income Fund, the Kentucky Municipal Bond Fund, the Ohio Municipal Bond
Fund and the Louisiana Municipal Bond Fund as of June 30, 1996, the results of
their operations, the changes in their net assets and the financial highlights
for the periods presented, in conformity with generally accepted accounting
principles.
Columbus, Ohio Coopers & Lybrand L.L.P.
August 19, 1996
70
<PAGE>
(This page has been left blank intentionally)
<PAGE>
(This page has been left blank intentionally)
<PAGE>
IMPORTANT CUSTOMER INFORMATION. PLEASE READ:
SHARES OF THE ONE GROUP:
- - ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY BANC ONE CORPORATION OR
ANY OF ITS AFFILIATES,
- - ARE NOT INSURED OR GUARANTEED BY THE FDIC OR BY ANY OTHER GOVERNMENTAL AGENCY
OR GOVERNMENT SPONSORED AGENCY OF THE FEDERAL GOVERNMENT OR ANY STATE,
- - ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.
BANC ONE INVESTMENT ADVISORS CORPORATION, A REGISTERED INVESTMENT ADVISOR AND AN
INDIRECT SUBSIDIARY OF BANC ONE CORPORATION, SERVES AS AN INVESTMENT ADVISOR TO
THE ONE GROUP, FOR WHICH IT RECEIVES ADVISORY FEES. THE ONE GROUP IS DISTRIBUTED
BY THE ONE GROUP SERVICES COMPANY, 3435 STELZER ROAD, COLUMBUS, OHIO 43219,
WHICH IS NOT AFFILIATED WITH BANC ONE CORPORATION AND IS NOT A BANK.
FOR MORE COMPLETE INFORMATION ON ANY OF THE ONE GROUP FUNDS, INCLUDING
MANAGEMENT FEES AND EXPENSES, YOU MAY OBTAIN A PROSPECTUS FROM THE ONE GROUP
SERVICES COMPANY BY CALLING 1-800-480-4111. READ THE PROSPECTUS CAREFULLY BEFORE
INVESTING.
THE COMPOSITION OF EACH FUND'S HOLDINGS IS SUBJECT TO CHANGE.
THIS MATERIAL MUST BE ACCOMPANIED OR PRECEDED BY A PROSPECTUS.
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. INVESTMENT RETURN AND NAV WILL FLUCTUATE SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST.
FOR MORE DETAILS ON THE ONE GROUP, VISIT OUR WEB SITE AT
HTTP://WWW.ONEGROUP.COM.
TOG-F-035-AN (8-96) [LOGO]
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 061
<NAME> THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 227749
<INVESTMENTS-AT-VALUE> 230575
<RECEIVABLES> 4296
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 234871
<PAYABLE-FOR-SECURITIES> 6333
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2276
<TOTAL-LIABILITIES> 8609
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 222793
<SHARES-COMMON-STOCK> 20353<F1>
<SHARES-COMMON-PRIOR> 20121<F1>
<ACCUMULATED-NII-CURRENT> 233
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 410
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2826
<NET-ASSETS> 226262
<DIVIDEND-INCOME> 105
<INTEREST-INCOME> 12507
<OTHER-INCOME> 0
<EXPENSES-NET> 1300
<NET-INVESTMENT-INCOME> 11312
<REALIZED-GAINS-CURRENT> 1432
<APPREC-INCREASE-CURRENT> (248)
<NET-CHANGE-FROM-OPS> 12496
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10698<F1>
<DISTRIBUTIONS-OF-GAINS> 468<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 6859<F1>
<NUMBER-OF-SHARES-REDEEMED> 6488<F1>
<SHARES-REINVESTED> 121<F1>
<NET-CHANGE-IN-ASSETS> 8303
<ACCUMULATED-NII-PRIOR> 11
<ACCUMULATED-GAINS-PRIOR> 563
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1400
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2079
<AVERAGE-NET-ASSETS> 224266<F1>
<PER-SHARE-NAV-BEGIN> 10.640<F1>
<PER-SHARE-NII> .520<F1>
<PER-SHARE-GAIN-APPREC> .040<F1>
<PER-SHARE-DIVIDEND> .510<F1>
<PER-SHARE-DISTRIBUTIONS> .020<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 10.670<F1>
<EXPENSE-RATIO> .540<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Fiduciary Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 062
<NAME> THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 227749
<INVESTMENTS-AT-VALUE> 230575
<RECEIVABLES> 4296
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 234871
<PAYABLE-FOR-SECURITIES> 6333
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2276
<TOTAL-LIABILITIES> 8609
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 222793
<SHARES-COMMON-STOCK> 621<F1>
<SHARES-COMMON-PRIOR> 1735<F1>
<ACCUMULATED-NII-CURRENT> 233
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 410
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2826
<NET-ASSETS> 226262
<DIVIDEND-INCOME> 105
<INTEREST-INCOME> 12507
<OTHER-INCOME> 0
<EXPENSES-NET> 1300
<NET-INVESTMENT-INCOME> 11312
<REALIZED-GAINS-CURRENT> 1432
<APPREC-INCREASE-CURRENT> (248)
<NET-CHANGE-FROM-OPS> 12496
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 328<F1>
<DISTRIBUTIONS-OF-GAINS> 17<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 387<F1>
<NUMBER-OF-SHARES-REDEEMED> 316<F1>
<SHARES-REINVESTED> 22<F1>
<NET-CHANGE-IN-ASSETS> 8303
<ACCUMULATED-NII-PRIOR> 11
<ACCUMULATED-GAINS-PRIOR> 563
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1400
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2079
<AVERAGE-NET-ASSETS> 7230<F1>
<PER-SHARE-NAV-BEGIN> 10.630<F1>
<PER-SHARE-NII> .500<F1>
<PER-SHARE-GAIN-APPREC> .050<F1>
<PER-SHARE-DIVIDEND> .490<F1>
<PER-SHARE-DISTRIBUTIONS> .020<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 10.670<F1>
<EXPENSE-RATIO> .790<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 063
<NAME> THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 227749
<INVESTMENTS-AT-VALUE> 230575
<RECEIVABLES> 4296
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 234871
<PAYABLE-FOR-SECURITIES> 6333
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2276
<TOTAL-LIABILITIES> 8609
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 222793
<SHARES-COMMON-STOCK> 228<F1>
<SHARES-COMMON-PRIOR> 124<F1>
<ACCUMULATED-NII-CURRENT> 233
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 410
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2826
<NET-ASSETS> 226262
<DIVIDEND-INCOME> 105
<INTEREST-INCOME> 12507
<OTHER-INCOME> 0
<EXPENSES-NET> 1300
<NET-INVESTMENT-INCOME> 11312
<REALIZED-GAINS-CURRENT> 1432
<APPREC-INCREASE-CURRENT> (248)
<NET-CHANGE-FROM-OPS> 12496
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 64<F1>
<DISTRIBUTIONS-OF-GAINS> 3<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 138<F1>
<NUMBER-OF-SHARES-REDEEMED> 20<F1>
<SHARES-REINVESTED> 5<F1>
<NET-CHANGE-IN-ASSETS> 8303
<ACCUMULATED-NII-PRIOR> 11
<ACCUMULATED-GAINS-PRIOR> 563
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1400
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2079
<AVERAGE-NET-ASSETS> 1637<F1>
<PER-SHARE-NAV-BEGIN> 10.650<F1>
<PER-SHARE-NII> .430<F1>
<PER-SHARE-GAIN-APPREC> .040<F1>
<PER-SHARE-DIVIDEND> .420<F1>
<PER-SHARE-DISTRIBUTIONS> .020<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 10.680<F1>
<EXPENSE-RATIO> 1.440<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 201
<NAME> THE ONE GROUP MUNICIPAL INCOME FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 291275
<INVESTMENTS-AT-VALUE> 291562
<RECEIVABLES> 7254
<ASSETS-OTHER> 6
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 298822
<PAYABLE-FOR-SECURITIES> 5985
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2731
<TOTAL-LIABILITIES> 8716
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 297878
<SHARES-COMMON-STOCK> 24956<F1>
<SHARES-COMMON-PRIOR> 21360<F1>
<ACCUMULATED-NII-CURRENT> 20
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 8079
<ACCUM-APPREC-OR-DEPREC> 287
<NET-ASSETS> 290106
<DIVIDEND-INCOME> 82
<INTEREST-INCOME> 15260
<OTHER-INCOME> 0
<EXPENSES-NET> 1561
<NET-INVESTMENT-INCOME> 13781
<REALIZED-GAINS-CURRENT> (2505)
<APPREC-INCREASE-CURRENT> 1176
<NET-CHANGE-FROM-OPS> 12452
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 12119<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 10330<F1>
<NUMBER-OF-SHARES-REDEEMED> 4649<F1>
<SHARES-REINVESTED> 86<F1>
<NET-CHANGE-IN-ASSETS> 84402
<ACCUMULATED-NII-PRIOR> 19
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 6399
<GROSS-ADVISORY-FEES> 1103
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2068
<AVERAGE-NET-ASSETS> 212502<F1>
<PER-SHARE-NAV-BEGIN> 9.690<F1>
<PER-SHARE-NII> .560<F1>
<PER-SHARE-GAIN-APPREC> (.030)<F1>
<PER-SHARE-DIVIDEND> .560<F1>
<PER-SHARE-DISTRIBUTIONS> .000<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 9.660<F1>
<EXPENSE-RATIO> .560<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Fiduciary Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 202
<NAME> THE ONE GROUP MUNICIPAL INCOME FUND
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<S> <C>
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<PERIOD-START> JUL-01-1995
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<F1>Class A Shares
</FN>
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<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 203
<NAME> THE ONE GROUP MUNICIPAL INCOME FUND
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<S> <C>
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<PERIOD-START> JUL-01-1995
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<SHARES-REINVESTED> 40<F1>
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<GROSS-EXPENSE> 2068
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<FN>
<F1>Class B Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 241
<NAME> THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
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<S> <C>
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<FN>
<F1>Fiduciary Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 242
<NAME> THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
<S> <C>
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<FN>
<F1>Class A Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 243
<NAME> THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
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<S> <C>
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<FN>
<F1>Class B Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 131
<NAME> THE ONE GROUP OHIO MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
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<FN>
<F1>Fiduciary Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 132
<NAME> THE ONE GROUP OHIO MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
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<FN>
<F1>Class A Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 133
<NAME> THE ONE GROUP OHIO MUNICIPAL BOND FUND
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<S> <C>
<PERIOD-TYPE> YEAR
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 251
<NAME> THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
<S> <C>
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<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 189709
<INVESTMENTS-AT-VALUE> 192835
<RECEIVABLES> 3261
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 196096
<PAYABLE-FOR-SECURITIES> 2395
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 958
<TOTAL-LIABILITIES> 3353
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190213
<SHARES-COMMON-STOCK> 13706<F1>
<SHARES-COMMON-PRIOR> 0<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 596
<ACCUM-APPREC-OR-DEPREC> 3126
<NET-ASSETS> 192743
<DIVIDEND-INCOME> 40
<INTEREST-INCOME> 6372
<OTHER-INCOME> 0
<EXPENSES-NET> 834
<NET-INVESTMENT-INCOME> 5578
<REALIZED-GAINS-CURRENT> (146)
<APPREC-INCREASE-CURRENT> (3198)
<NET-CHANGE-FROM-OPS> 2234
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1732<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 13956<F1>
<NUMBER-OF-SHARES-REDEEMED> 250<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> (15491)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 450
<GROSS-ADVISORY-FEES> 641
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1052
<AVERAGE-NET-ASSETS> 136910<F1>
<PER-SHARE-NAV-BEGIN> 10.000<F1>
<PER-SHARE-NII> .130<F1>
<PER-SHARE-GAIN-APPREC> (.070)<F1>
<PER-SHARE-DIVIDEND> .130<F1>
<PER-SHARE-DISTRIBUTIONS> .000<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 9.930<F1>
<EXPENSE-RATIO> .710<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Fiduciary Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 252
<NAME> THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 189709
<INVESTMENTS-AT-VALUE> 192835
<RECEIVABLES> 3261
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 196096
<PAYABLE-FOR-SECURITIES> 2395
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 958
<TOTAL-LIABILITIES> 3353
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190213
<SHARES-COMMON-STOCK> 5388<F1>
<SHARES-COMMON-PRIOR> 19149<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 596
<ACCUM-APPREC-OR-DEPREC> 3126
<NET-ASSETS> 192743
<DIVIDEND-INCOME> 40
<INTEREST-INCOME> 6372
<OTHER-INCOME> 0
<EXPENSES-NET> 834
<NET-INVESTMENT-INCOME> 5578
<REALIZED-GAINS-CURRENT> (146)
<APPREC-INCREASE-CURRENT> (3198)
<NET-CHANGE-FROM-OPS> 2234
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3782<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 1784<F1>
<NUMBER-OF-SHARES-REDEEMED> 15630<F1>
<SHARES-REINVESTED> 85<F1>
<NET-CHANGE-IN-ASSETS> (15491)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 450
<GROSS-ADVISORY-FEES> 641
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1052
<AVERAGE-NET-ASSETS> 56014<F1>
<PER-SHARE-NAV-BEGIN> 10.090<F1>
<PER-SHARE-NII> .240<F1>
<PER-SHARE-GAIN-APPREC> (.160)<F1>
<PER-SHARE-DIVIDEND> .240<F1>
<PER-SHARE-DISTRIBUTIONS> .000<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 9.930<F1>
<EXPENSE-RATIO> .690<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A Shares
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
<NUMBER> 253
<NAME> THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 189709
<INVESTMENTS-AT-VALUE> 192835
<RECEIVABLES> 3261
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 196096
<PAYABLE-FOR-SECURITIES> 2395
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 958
<TOTAL-LIABILITIES> 3353
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190213
<SHARES-COMMON-STOCK> 325<F1>
<SHARES-COMMON-PRIOR> 196<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 596
<ACCUM-APPREC-OR-DEPREC> 3126
<NET-ASSETS> 192743
<DIVIDEND-INCOME> 40
<INTEREST-INCOME> 6372
<OTHER-INCOME> 0
<EXPENSES-NET> 834
<NET-INVESTMENT-INCOME> 5578
<REALIZED-GAINS-CURRENT> (146)
<APPREC-INCREASE-CURRENT> (3198)
<NET-CHANGE-FROM-OPS> 2234
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 64<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0<F1>
<NUMBER-OF-SHARES-SOLD> 155<F1>
<NUMBER-OF-SHARES-REDEEMED> 27<F1>
<SHARES-REINVESTED> 4<F1>
<NET-CHANGE-IN-ASSETS> (15491)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 450
<GROSS-ADVISORY-FEES> 641
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1052
<AVERAGE-NET-ASSETS> 3062<F1>
<PER-SHARE-NAV-BEGIN> 10.090<F1>
<PER-SHARE-NII> .210<F1>
<PER-SHARE-GAIN-APPREC> (.160)<F1>
<PER-SHARE-DIVIDEND> .210<F1>
<PER-SHARE-DISTRIBUTIONS> .000<F1>
<RETURNS-OF-CAPITAL> .000<F1>
<PER-SHARE-NAV-END> 9.930<F1>
<EXPENSE-RATIO> 1.500<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B Shares
</FN>
</TABLE>
