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THE ONE GROUP(R)
FAMILY OF MUTUAL FUNDS
BOND FUNDS COMBINED PROSPECTUS
Supplement dated November 15, 1996
to Prospectus dated November 1, 1996
THE ONE GROUP(R) INTERMEDIATE BOND FUND
THE ONE GROUP(R) GOVERNMENT BOND FUND
THE ONE GROUP(R) LIMITED VOLATILITY BOND FUND
THE ONE GROUP(R) INCOME BOND FUND
THE ONE GROUP(R) ULTRA SHORT-TERM INCOME FUND
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The first paragraph on page 1 is replaced with the following:
This Prospectus describes five taxable bond mutual funds (the "Funds").
Each Fund is a series of The One Group(R) (the "Trust"). Banc One
Investment Advisors Corporation ("Banc One Advisors") serves as investment
advisor to each Fund. Banc One Advisors currently manages more than $39
billion in assets.
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THE ONE GROUP(R)
FAMILY OF MUTUAL FUNDS
MONEY MARKET FUNDS COMBINED PROSPECTUS
Supplement dated November 15, 1996
to Prospectus dated November 1, 1996
THE ONE GROUP(R) PRIME MONEY MARKET FUND
THE ONE GROUP(R) MUNICIPAL MONEY MARKET FUND
THE ONE GROUP(R) OHIO MUNICIPAL MONEY MARKET FUND
THE ONE GROUP(R) U.S. TREASURY MONEY MARKET FUND
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The paragraph on page 3 entitled, "HOW DO I PURCHASE AND REDEEM SHARES?" is
deleted and replaced with the following:
HOW DO I PURCHASE AND REDEEM SHARES? Purchase and redemptions of shares of
the Funds may be made through the Distributor on any day that the Federal
Reserve Bank System is open for trading ("Business Day"). Purchase and
redemption procedures are explained in greater detail in "How to Invest in The
One Group(R)" and "Redemptions."
The following disclosure is added to the prospectus under the heading
"DESCRIPTION OF PERMITTED INVESTMENTS".
ONLY THE MUNICIPAL MONEY MARKET FUND AND
THE OHIO MUNICIPAL MONEY MARKET FUND MAY INVEST IN THE FOLLOWING:
MUNICIPAL SECURITIES -- Municipal Securities are issued by a state or
political subdivision to obtain funds for various public purposes. In addition,
municipal securities also may consist of certain debt obligations known as
private activity bonds and industrial development bonds which may be issued to
finance certain public and privately operated facilities. Municipal securities
are generally classified as "general obligation" bonds and "revenue" bonds.
General obligation bonds are obligations involving the credit of an issuer
possessing taxing power and are payable from the issuer's general unrestricted
revenues. Revenue bonds are payable only from the revenues derived from a
particular facility or class of facilities or, in some cases, from the proceeds
of a special excise or other specific revenue source. Revenue bonds are not
payable from the issuer's general revenues. Private activity bonds and
industrial development bonds are categorized as revenue bonds. The Funds also
may purchase short-term tax-exempt General Obligation Notes, Tax Anticipation
Notes, Bond Anticipation Notes, Revenue Anticipation Notes, Project Notes, and
other forms of short-term tax-exempt obligations. Such notes are issued with a
short-term maturity in anticipation of the receipt of tax funds, the proceeds of
bond placements, or other revenues. Municipal securities may include municipal
leases which may be considered illiquid for purposes of the Funds' limitations
on illiquid investments.
An issuer's obligations under its municipal securities are subject to the
provisions of bankruptcy, insolvency, and other laws affecting the rights and
remedies of creditors, such as the federal bankruptcy code, and laws, if any,
which may be enacted by Congress or state legislatures extending the time for
payment of principal or interest, or both, or imposing other constraints upon
the enforcement of such obligations. The power or ability of an issuer to meet
its obligations for the payment of interest on and principal of its municipal
securities may be materially adversely affected by litigation or other
conditions. Such litigation or conditions may from time to time have the effect
of introducing uncertainties in the market for tax-exempt obligations or certain
segments thereof, or may materially affect the credit risk with respect to
particular bonds or notes. Adverse economic, business, legal or political
developments might affect all or a substantial portion of a Fund's municipal
securities in the same manner. The payment of principal and interest on private
activity bonds and industrial development bonds generally is dependent solely on
the ability of the facilities users to meet its financial obligations and the
pledge, if any, of real and personal property as security for such payment. In
addition, the Internal Revenue Code of 1986, as amended (the "Code") imposes
certain continuing requirements on issuers of tax-exempt bonds regarding the
use, expenditure and investment of bond proceeds and the payment of rebates to
the United States of America. Failure by the issuer to comply subsequent to the
issuance of tax-exempt bonds with certain of these requirements could cause
interest on the bonds to become includable in gross income retroactive to the
date of issuance. Municipal securities may include obligations of municipal
housing authorities and single family revenue bonds. Weaknesses in Federal
housing subsidy programs may result in a decrease of subsidies available for
payment of principal and interest on housing authority bonds.
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