<PAGE>
The One Group-Registered Trademark-
Family of Mutual Funds
-----------------------------------------------------------------------
Money Market Funds Semi-Annual Report
FOR THE SIX MONTHS ENDED DECEMBER 31, 1995
U.S. Treasury Securities
Money Market Fund
Prime Money Market Fund
Municipal Money Market Fund
Ohio Municipal
Money Market Fund
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1995
<TABLE>
<S> <C>
Report From Your Investment Advisor................................................... 2
Schedules of Portfolio Investments.................................................... 4
Statements of Assets and Liabilities.................................................. 14
Statements of Operations.............................................................. 15
Statements of Changes in Net Assets................................................... 16
Notes to Financial Statements......................................................... 17
Financial Highlights.................................................................. 24
</TABLE>
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1
<PAGE>
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Report From Your Investment Advisor
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1995
A MESSAGE TO THE ONE GROUP SHAREHOLDERS
We are pleased to present this semiannual report for The One Group Family of
Mutual Funds. As part of our continuing efforts to provide you with exceptional
investment management and high-quality service and communication, this report
provides an overview of the financial markets and your fund's performance for
the period from July 1, 1995, to December 31, 1995.
A STELLAR YEAR FOR INVESTORS
Neither stock nor bond investors had much to complain about in 1995. Modest
economic growth coupled with declining interest rates and steady inflation
provided the backdrop for one of the most successful years in the history of the
stock and bond markets.
We are pleased to report that The One Group equity and fixed-income funds
generally provided attractive returns during the six-month period. In fact, most
of our funds surpassed their average historical returns.
AN ABOUT-FACE IN THE BOND MARKET
Rebounding from a disastrous 1994, the bond market in 1995 generated returns
that rivaled those of stocks. The 30-year Treasury bond, for example, generated
returns of 34.15% for the year and 11.95% for the six months ended December 31,
according to Ryan Labs Inc. Other fixed-income securities followed suit, posting
returns that exceeded their historical averages.
The bond market rally began early in the year. As the economy slowed to a more
sustainable growth level with minimal inflation, the Federal Reserve ended the
series of interest rate increases it had implemented during 1994 and early 1995.
Several months later, when it appeared that growth may have been slowing a bit
too much, the Fed attempted to jump-start the sluggish economy by cutting
interest rates twice--once in July and once in December. This action caused bond
yields to fall and bond prices to rise.
The yield on the five-year Treasury fell from 7.83% on December 31, 1994, to
5.97% on June 30, 1995, and to 5.37% on December 31, 1995. The 30-year Treasury
yield fell from 7.88% on December 31, 1994, to 6.62% on June 30, 1995, and to
5.95% on December 31, 1995.
TAX REFORM TALK TAMES MUNI MARKET
Municipal securities also rebounded nicely from 1994's poor showing, posting
generally attractive returns. Despite such performance, though, returns on
municipal investments fell far short of the returns enjoyed in the taxable bond
and stock markets. With several tax-reform proposals on the table--including
some that would eliminate or reduce the tax break on munis--the long-term
attractiveness of this market remains in question. This caused many investors to
take their investment dollars elsewhere during 1995.
MONEY MARKET RATES RETURN TO 'NORMAL'
The only fixed-income investors who may have been somewhat disappointed during
1995 were those invested in money market securities. After surpassing the
average returns on both stock and bond mutual funds during 1994, money market
fund performance returned to "normal" during 1995. However, this was due
primarily to the phenomenal performance rebound in the equity and fixed-income
markets and not to any dramatic mishap in the short-term fixed-income market. As
is typical of a falling interest rate environment, yields on money market
instruments fell slightly during the period.
EQUITIES SOAR TO RECORD HIGHS
In the 1995 stock market, bigger was better. Bolstered by modest economic growth
and strong profits, large, multi-national companies offered the best returns.
The Dow Jones Industrial Average, for example, soared to two milestone levels
within nine months--4,000 in February and 5,000 in November. The S&P 500 Index
also posted spectacular gains. For the six-month period ended December 31, 1995,
the S&P 500 returned 14.44%, while for the year ended December 31, 1995 its
performance reached 34.11%.
While they lagged their larger counterparts, small company stocks nevertheless
posted historically attractive returns. As measured by the Russell 2000,
small-company stocks returned 11.40% for the six-month period and 26.21% for the
year ended December 31, 1995.
KEEPING PERFORMANCE IN PERSPECTIVE
While The One Group Funds participated in the market rallies during the past
year, few of our funds outperformed their benchmark indexes. It is important to
remember that the widely-publicized performance of market indexes
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2
<PAGE>
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Report From Your Investment Advisor, continued
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1995
typically is not indicative of the performance of specific mutual funds. Except
for our designated "index" funds, the composition of The One Group Funds differs
significantly from the broad-based market indexes.
On the equity side, for example, the S&P 500 is comprised primarily of stocks of
large corporations with a bias toward growth-oriented issues. Most stock funds
have holdings in medium- and small-company stocks, which did not experience the
same level of results as their larger counterparts. Neither did value stocks,
which, in general, underperformed their growth-oriented peers. Consequently,
investors with exposure to various types of stocks should compare each component
of their portfolio to the most-appropriate benchmark index.
On the fixed-income side, investors may choose from bonds with short-,
intermediate- or long-term maturities with different degrees of quality and
risk. When selecting an appropriate performance benchmark, all of these
characteristics must be considered to obtain an accurate evaluation. During
1995, bond funds with greater duration, or interest-rate risk exposure,
performed the best. The One Group fixed-income funds typically maintain a
relatively conservative risk posture, which can make them less-sensitive to
interest rate swings. While this may inhibit the funds' price appreciation when
interest rates fall, it tends to protect against price depreciation when
interest rates increase.
OUR THANKS TO YOU
Thank you for continuing to invest with The One Group Family of Mutual Funds. We
appreciate your support and confidence as we strive to help you reach your
financial goals.
Sincerely,
[DAVID J. KUNDERT SIGNATURE]
David J. Kundert
PRESIDENT & CEO,
BANC ONE INVESTMENT ADVISORS CORPORATION
[PHOTO]
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3
<PAGE>
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The One Group Family of Mutual Funds
U.S. TREASURY SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ------- -------------------------------------------------- -------------
<C> <S> <C>
U.S. Treasury Bills (9.0%):
55,740 1/11/96 (b)............................................................................... $ 55,659
50,000 8/22/96 (b)............................................................................... 48,218
25,000 9/19/96 (b)............................................................................... 24,014
-------------
Total U.S. Treasury Bills 127,891
-------------
U.S. Treasury Notes (11.7%):
25,000 7.25%, 8/31/96 (b)........................................................................ 25,203
20,000 6.50%, 9/30/96 (b)........................................................................ 20,096
20,000 7.88%, 7/15/96 (b)........................................................................ 20,210
100,000 7.50%, 2/29/96............................................................................ 100,305
-------------
Total U.S. Treasury Notes 165,814
-------------
Total Investments, at value 293,705
-------------
Repurchase Agreements (79.3%):
10,000 Barclays de Zoete Wedd, 4.75%, 1/2/96 (Collateralized by 19,976 various U.S. Government
Agency securities, 0.00%-5.05%, 2/7/96-8/15/17, market value $10,201)................... 10,000
60,000 Barclays de Zoete Wedd, Canada Limited Securities, 5.80%, 1/2/96 (Collateralized by
123,048 various U.S. Government Agency securities, 0.00%-7.92%, 1/5/96-2/15/23, market
value $61,201).......................................................................... 60,000
60,000 Donaldson, Lufkin, Jenrette, 5.85%, 1/2/96 (Collateralized by 59,255 U.S. Treasury Notes,
6.63%, 03/31/97, market value $61,200).................................................. 60,000
300,000 Goldman Sachs, 5.90%, 1/2/96 (Collateralized by 602,260 U.S. Treasury Notes, 0.00%-6.25%,
5/31/97-2/15/19, market value $346,800) (c)............................................. 300,000
40,000 Goldman Sachs, 5.75%, 1/2/96 (Collateralized by 602,260 U.S. Treasury Notes, 0.00%-6.25%,
5/31/97-2/15/19, market value $346,800)(c).............................................. 40,000
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ------- -------------------------------------------------- -------------
</TABLE>
Repurchase Agreements, continued:
<TABLE>
<C> <S> <C>
60,000 Hong Kong Shanghai Banc Corp., 5.90%, 1/2/96 (Collateralized by 59,417 U.S. Treasury
Notes, 5.50%-8.63%, 7/31/97-9/30/97,
market value $61,203)................................................................... $ 60,000
65,000 J.P. Morgan & Co., Inc., 5.50%, 1/2/96 (Collateralized by 66,301 various U.S. Treasury
Securities, 5.50%, 5/31/96-2/15/25, market value $66,301)............................... 65,000
40,000 Lehman Brothers Holdings, Inc., 5.80%, 1/2/96 (Collateralized by 60,290 various U.S.
Treasury securities, 0.00%, 2/15/01-11/15/14, market value $40,803)..................... 40,000
310,000 Lehman Brothers Holdings, Inc., 5.95%, 1/2/96 (Collateralized by 612,475 U.S. Treasury
Notes, 0.00%, 8/15/02-2/15/11, market value $316,200)................................... 310,000
60,000 Merrill Lynch 5.70%, 1/2/96 (Collateralized by 58,540 U.S. Treasury Notes, 4.00%-9.25%,
1/15/96-11/15/05, market value $61,204)................................................. 60,000
60,000 Morgan Stanley, 5.87%, 1/2/96 (Collateralized by 60,365 U.S. Treasury Notes, 4.63%,
02/26/96, market value $61,235)......................................................... 60,000
60,000 Nomura Securities International, 5.95%, 1/2/96 (Collateralized by 41,842 U.S. Treasury
Bonds, 7.50%, 11/15/24, market value $50,451 and 11,287 U.S. Treasury Bills, 12/12/96,
market value $10,750)................................................................... 60,000
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Total Repurchase Agreements 1,125,000
-------------
Total (Cost--$1,418,705)(a) $ 1,418,705
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</TABLE>
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Percentages indicated are based on net assets of $1,416,611.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
(b) A portion of this security was loaned as of December 31, 1995.
(c) The repurchase agreements are cross-collateralized by the same pool of
collateral securities.
SEE NOTES TO FINANCIAL STATEMENTS.
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4
<PAGE>
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The One Group Family of Mutual Funds
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ---------------------------------------------------------------------- -------------
<C> <S> <C>
Certificates of Deposit (5.0%):
60,000 Peoples Security Life, 6.09%, 10/22/95*............................... $ 60,000
25,000 Providian Life & Health Insurance Co., 6.13%, 11/1/95*................ 25,000
35,000 Providian Life & Health Insurance Co., 6.13%, 11/1/95*................ 35,000
-------------
Total Certificates of Deposit 120,000
-------------
Commercial Paper (66.2%):
21,000 Akzo Nobel, Inc., 5.71%, 1/19/96*..................................... 20,940
20,000 Akzo Nobel, Inc., 5.59%, 3/14/96*..................................... 19,773
15,000 American Honda Finance Corp., 5.76%, 1/16/96*......................... 14,964
20,000 American Honda Finance Corp., 5.77%, 1/17/96*......................... 19,949
30,000 American Honda Finance Corp., 5.82%, 1/30/96*......................... 29,859
15,000 American Honda Finance Corp., 5.77%, 1/30/96*......................... 14,930
22,000 American Honda Finance Corp., 5.77%, 2/5/96*.......................... 21,877
50,000 Barnett Banks, Inc., 5.76%, 1/19/96*.................................. 49,856
50,000 Bear Stearns Cos., 5.67%, 2/21/96*.................................... 49,598
21,947 Cogentrix of Richmond, Inc., 5.80%, 1/24/96*.......................... 21,866
36,000 Countrywide Funding Corp., 5.82%, 1/8/96*............................. 35,959
59,600 Countrywide Funding Corp., 5.83%, 1/10/96*............................ 59,513
18,000 Countrywide Funding Corp., 5.70%, 2/14/96*............................ 17,875
21,000 CSC Enterprises, 5.78%, 1/22/96*...................................... 20,929
20,000 CSC Enterprises, 5.72%, 2/6/96*....................................... 19,886
12,500 CSC Enterprises, 5.72%, 2/6/96*....................................... 12,429
27,500 CSC Enterprises, 5.75%, 2/23/96*...................................... 27,267
18,893 CSW Credit, Inc., 5.76%, 1/18/96*..................................... 18,842
18,400 CSW Credit, Inc., 5.74%, 1/25/96*..................................... 18,330
30,000 Duracell, Inc., 5.82%, 1/11/96*....................................... 29,951
24,658 Duracell, Inc., 5.83%, 1/12/96*....................................... 24,614
19,086 Finova Capital Corp., 5.90%, 1/10/96*................................. 19,058
45,000 Finova Capital Corp., 6.00%, 1/23/96*................................. 44,835
50,000 Finova Capital Corp., 5.95%, 1/25/96*................................. 49,802
20,000 General Motors Acceptance Corp., 5.86%, 2/2/96*....................... 19,896
52,000 General Motors Acceptance Corp., 5.67%, 3/1/96*....................... 51,509
45,000 General Motors Acceptance Corp., 5.58%, 3/6/96*....................... 44,547
50,000 Great Western Bank, 5.72%, 1/31/96*................................... 49,762
25,000 Great Western Bank, 5.72%, 2/8/96*.................................... 24,849
40,000 GTE Corp., 5.82%, 1/24/96*............................................ 39,851
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ---------------------------------------------------------------------- -------------
</TABLE>
Commercial Paper, continued:
<TABLE>
<C> <S> <C>
35,000 GTE Corp., 5.86%, 2/13/96*............................................ $ 34,755
40,000 GTE Corp., 5.86%, 2/14/96*............................................ 39,714
25,000 Hanson Finance, 5.65%, 2/14/96*....................................... 24,827
25,000 IBM Credit Corp., 5.65%, 2/13/96*..................................... 24,831
50,000 Kingdom of Sweden, 5.64%, 3/1/96*..................................... 49,530
25,000 Lehman Brothers, 6.15%, 1/23/96*...................................... 25,000
50,000 Merrill Lynch, 5.75%, 1/26/96*........................................ 49,800
50,000 Monte Dei Paschi Di Siena, 5.62%, 3/15/96*............................ 49,422
75,000 Nynex Corp., 5.84%, 1/16/96*.......................................... 74,818
20,000 Nynex Corp., 5.80%, 1/31/96*.......................................... 19,903
32,800 Pemex Capital, Inc., 5.72%, 2/9/96*................................... 32,597
25,000 Petrolea Brasileiro S.A. Petrobas, 5.62%, 3/25/96*.................... 24,672
10,000 Petrolea Brasileiro S.A. Petrobas, 5.75%, 2/27/96*.................... 9,909
36,800 Prefco, 5.75%, 2/8/96*................................................ 36,577
10,000 TamBrands Corp., 5.60%, 1/3/96*....................................... 9,997
40,060 USL Capital Corp., 5.70%, 2/1/96*..................................... 39,863
42,900 Whirlpool Finance Corp., 5.76%, 2/12/96*.............................. 42,612
62,000 Whirlpool Financial Corp., 5.70%, 2/7/96*............................. 61,637
-------------
Total Commercial Paper 1,543,780
-------------
Corporate Bonds (6.4%):
50,000 Abbey National Treasury Services, 7.05%, 3/1/96....................... 49,998
11,000 Associates Corp. of North America, 4.50%, 2/15/96..................... 10,962
50,000 CIT Group Holdings, Inc., 7.05%, 3/4/96............................... 50,000
25,000 IBM Credit Corp., 5.90%, 8/28/96*..................................... 24,983
50,000 International Business Machines, 5.90%, 7/29/96*...................... 49,987
17,875 John Deere, 4.63%, 9/2/96............................................. 17,731
-------------
Total Corporate Bonds 203,661
-------------
Floating Rate Notes (4.4%):
25,150 Lehman Brothers Holdings, Inc., 6.66%, 5/17/96*....................... 25,162
31,440 Student Loan Marketing Assoc., 6.08%, 6/30/96*........................ 31,440
50,000 Student Loan Marketing Assoc., 5.24%, 9/28/98*........................ 50,000
-------------
Total Floating Rate Notes 106,602
-------------
Guaranteed Insurance Contract (2.1%):
50,000 Allstate, 6.05%, 9/1/96............................................... 50,000
-------------
Total Guaranteed Insurance Contract 50,000
-------------
</TABLE>
CONTINUED
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5
<PAGE>
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The One Group Family of Mutual Funds
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ---------------------------------------------------------------------- -------------
Medium Term Notes (2.3%):
<C> <S> <C>
55,000 Lehman Brothers Holdings, Inc., 6.13%, 3/21/96*....................... $ 55,000
-------------
Total Medium Term Notes 55,000
-------------
Total Investments, at value 2,079,043
-------------
Repurchase Agreements (16.1%):
299,721 Lehman Brothers Holdings, Inc. 5.96%, 1/2/96 (Collateralized by
313,605 various U.S. Government Agency Securities, 0.00%, 1/8/96--
7/19/96, market value $305,720)..................................... 299,721
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ---------------------------------------------------------------------- -------------
</TABLE>
Repurchase Agreements, continued:
<TABLE>
<C> <S> <C>
35,000 Prudential Securities, Inc., 6.00%, 1/2/96 (Collateralized by 34,728
various U.S. Government Agency Securities, 5.22%--7.57%, 3/31/97--
6/17/05, market value $35,701)...................................... $ 35,000
-------------
Total Repurchase Agreements 334,721
-------------
Total (Cost--$2,413,764)(a) $ 2,413,764
-------------
-------------
</TABLE>
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Percentages indicated are based on net assets of $2,408,078.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity sources through bank letters of
credit and/or liquidity arrangements. 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
effective rate at December 31, 1995.
SEE NOTES TO FINANCIAL STATEMENTS.
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6
<PAGE>
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The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
<C> <S> <C>
Municipal Securities (100.8%):
Alabama (1.3%):
2,650 Alabama Private Colleges & Universities Equipment & Capital, Series A, 5.15%, 7/1/05, FGIC*................. $ 2,650
4,900 Phenix County, Industrial Development Board Environmental Improvement Revenue, Mead Coated Board Project,
3.75%, 12/1/23, LOC: ABN/AMRO Bank*....................................................................... 4,900
-----------
7,550
-----------
Arizona (0.3%):
2,000 Chandler County, Industrial Development Authority Revenue Bond, Parsons Municipal Services, Inc., 4.25%,
12/15/09, LOC: National Westminster Bank*................................................................. 2,000
-----------
Arkansas (1.4%):
8,100 Clark County, Solid Waste Disposal Revenue Bonds, Reynolds Metals Co. Project, 5.20%, 8/1/22, LOC: Trust
Company Bank*............................................................................................. 8,100
-----------
Colorado (3.9%):
15,000 Colorado General Fund Revenue, Tax & Revenue Anticipation Notes, Series A, 4.50%, 6/27/96................... 15,061
2,100 Platte River Power Authority, 3.60%, 2/21/96................................................................ 2,100
5,500 Platte River Power Authority, Electric Revenue, Sub Lien, Series S-1, 3.75%, 1/24/96, LOC: Morgan
Guaranty.................................................................................................. 5,500
-----------
22,661
-----------
Florida (6.3%):
11,265 Dade County, Solid Waste IDR, Montenay, Dade Ltd. Project,
Series A, 5.10%, 12/1/13, LOC: Banque Paribas*............................................................ 11,265
7,000 Hillsborough, Tampa Airport, 3.85%, 2/13/96, LOC: National Westminster Bank................................. 7,000
8,665 Indian Trace Community Development District, Florida - Basin I Water Management Special Tax Bond, 4.90%,
5/1/10, MBIA*............................................................................................. 8,665
10,000 Putnam County, Development Authority, PCR Bonds, NRU Seminole Electric, Series 4, 3.75%, 3/15/14**.......... 10,000
-----------
36,930
-----------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
</TABLE>
Municipal Securities, continued:
<TABLE>
<C> <S> <C>
Georgia (7.2%):
10,900 Cobb County, Housing Authority, Multifamily Housing Revenue, Pittco Frey Assoc. Project, 5.20%, 6/1/23, LOC:
Societe Generale*......................................................................................... $ 10,900
12,000 Dekalb Private Hospital Authority, Childrens Hospital, Series A, 5.05%, 3/1/24*............................. 12,000
8,200 Monroe County Development Authority, PCR Bonds, Georgia Power Co., Scherer Second Series, 5.50%, 7/1/25*.... 8,200
6,000 Municipal Electric Authority, 3.90%, 1/2/96................................................................. 6,000
5,000 Municipal Electric Authority, Project One, Sub-Series E, 3.80%, 1/1/26, LOC: Credit Suisse.................. 5,000
-----------
42,100
-----------
Idaho (0.9%):
5,000 State Tax Anticipation Notes, 4.50%, 6/27/96................................................................ 5,016
-----------
Illinois (8.5%):
2,500 Chicago, GO Bonds, Series A, 3.75%, 10/31/96, LOC: Morgan Guaranty**........................................ 2,500
10,900 Chicago O'Hare International Airport, Second Lien, Series B, 5.30%, 1/1/18, LOC: Societe General*........... 10,900
5,000 City of Jacksonville, Industrial Project Loans, AGI, Inc. Project, 5.45%, 2/1/26, LOC: Bank of America,
Chicago*.................................................................................................. 5,000
5,900 Illinois Development Finance Authority Revenue, Special Facility, Little City Foundation, 5.20%, 2/1/19,
LOC: LaSalle National Bank*............................................................................... 5,900
4,700 Illinois Development Finance Authority, Revenue Bonds, Aurora Central Catholic High School, 5.20%, 4/1/24,
LOC: Northern Trust Co.*.................................................................................. 4,700
4,500 Illinois Development Finance Authority, Roosevelt University Project, 4.25%, 4/1/25 LOC: American National
Bank*..................................................................................................... 4,500
1,625 Illinois Development Finance Authority, Revenue Bonds, St. Paul's House Project, 3.94%, 2/1/25 LOC: LaSalle
National Bank*............................................................................................ 1,625
</TABLE>
CONTINUED
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7
<PAGE>
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The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
<C> <S> <C>
Municipal Securities, continued:
Illinois, continued:
2,500 Illinois Educational Facilities Authority Revenue, Northwestern University, 5.10%, 3/1/28, LOC: Northern
Trust*.................................................................................................... $ 2,500
1,000 Illinois Health Facilities Authority, Pooled Series, Series C, 5.20%, 8/1/15 LOC: FNB Chicago*.............. 1,000
2,000 Illinois Health Facilities Authority Revenue, Highland Park Hospital, Series A, 4.00%, 10/1/15, FGIC**...... 2,000
1,900 Illinois Health Facilities Authority, Series E, 1985, Sisters Hospital, 5.00%, 12/1/14, LOC: Morgan
Guaranty*................................................................................................. 1,900
3,000 Illinois Health Facilities Authority, Washington & Jane Smith Home, 5.20%, 7/1/26, LOC: First Chicago
Bank*..................................................................................................... 3,000
2,460 Lombard, IDR Bonds, Chicago Roll Co. Inc. Project, 5.90%, 2/1/10, LOC: American National Bank*.............. 2,460
2,000 Orland Hills, Illinois Multi-Family Mortgage Revenue, 88th Ave. Project, 3.85%, 12/1/04 LOC: LaSalle
National Bank*............................................................................................ 2,000
-----------
49,985
-----------
Indiana (10.1%):
13,700 Gary, Environmental Improvement Revenue, U.S. Steel Corp. Project, 4.25%, 7/15/02, LOC: Bank of Nova
Scotia*................................................................................................... 13,700
11,400 Indiana Health Facility Financing Authority, Rehabilitation Hospital, 5.15%, 11/1/20, LOC: Toronto Dominion
Bank*..................................................................................................... 11,400
3,300 Indiana Hospital Equipment Financing Authority, Series A, 5.60%, 12/1/15, Insured: MBIA*.................... 3,300
3,000 Indianapolis Economic Development Revenue, Childrens Museum Project, 5.15%, 10/1/25, LOC: National Bank of
Detroit, Indianapolis*.................................................................................... 3,000
4,050 Jasper, Economic Development, Best Chairs, Inc. Project, 5.50%, 3/1/19 LOC: PNC Bank*....................... 4,050
24,035 Rockport, PCR Bonds, Indiana & Michigan Electric Co., Series A, 5.20%, 8/1/14 LOC: Swiss Bank*.............. 24,035
-----------
59,485
-----------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
</TABLE>
Municipal Securities, continued:
<TABLE>
<C> <S> <C>
Louisiana (1.6%):
4,000 Jefferson Parish, Hospital Service, District #2, 5.15%, 12/1/15, FGIC*...................................... $ 4,000
5,000 Louisiana State Refunding, Series A, 4.20%, 8/1/96.......................................................... 5,014
-----------
9,014
-----------
Michigan (6.8%):
8,900 Michigan Higher Education, Student Loan, Series B, 5.20%, 10/1/13, AMBAC**.................................. 8,900
2,500 Michigan Municipal Bond Revenue Notes, Series B, 4.50%, 7/3/96.............................................. 2,509
1,750 Michigan Strategic Fund, Limited Obligation, Wayne Disposal, Oakland Project, 5.30%, 3/1/05, LOC: Comerica
Bank*..................................................................................................... 1,750
1,000 Michigan Strategic Fund, Limited Obligation Environmental Quality, 5.30%, 5/1/05, LOC: Comerica Bank*....... 1,000
25,585 Michigan Underground Storage Tank, Financial Assurance Authority, Series 1, 5.15%, 12/1/04, LOC: Canadian
Imperial Bank*............................................................................................ 25,585
-----------
39,744
-----------
Minnesota (0.8%):
1,100 Rochester, Health Care, Mayo Medical Center, Series C, 3.65%, 2/7/96........................................ 1,100
1,500 Rochester, Health Care, Mayo Medical Center, Series E, 3.80%, 2/8/96........................................ 1,500
2,000 Rochester, Health Care, Mayo Medical Foundation, Mayo Medical Center, Series C, 3.75%, 2/7/96............... 2,000
-----------
4,600
-----------
Missouri (0.3%):
2,000 Missouri Environmental Improvement & Energy Resource Authority, PCR Bonds, Union Electric Co., Series B,
4.00%, 6/1/14, LOC: Union Bank of Switzerland**........................................................... 2,000
-----------
Montana (0.6%):
3,500 Montana Board Investment, Municipal Finance Conservation Act, 4.90%, 3/1/09**............................... 3,500
-----------
Nevada (2.7%):
4,000 Clark County, Airport System, Improvement Revenue Bonds, Sub Lien, Series A-1, 5.05%, 7/1/25 LOC: Toronto
Dominion Bank*............................................................................................ 4,000
</TABLE>
CONTINUED
- ----
8
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
Municipal Securities, continued:
Nevada, continued:
<C> <S> <C>
10,000 Clark County, IDR Bonds, Nevada Power Co. Project, Series A, 3.90%, 10/1/30, LOC: Barclays Bank*............ $ 10,000
2,000 Nevada State GO Bonds, 6.35%, 8/1/96........................................................................ 2,034
-----------
16,034
-----------
New Mexico (1.2%):
7,000 Albuquerque, Airport Revenue Sub Lien, 5.05%, 7/1/14, AMBAC*................................................ 7,000
-----------
New York (1.6%):
7,500 New York State Energy Research & Development Authority, PCR Bonds, Lilco Project, Series A, 4.70%, 3/1/16,
LOC: Deutsche Bank**...................................................................................... 7,501
2,000 Niagara County, American Ref-Fuel, Series 94B, 3.80%, 2/7/96................................................ 2,000
-----------
9,501
-----------
North Carolina (0.9%):
5,000 Raleigh-Durham, Airport Authority, Special Facility Revenue, American Airlines, Series A, 5.95%, 11/1/15,
LOC: Royal Bank of Canada*................................................................................ 5,000
-----------
North Dakota (1.0%):
6,000 Mercer County, Solid Waste Disposal Revenue, National Rural Utility, United Power Project U, 3.65%,
12/1/18**................................................................................................. 6,000
-----------
Ohio (8.1%):
5,300 Columbus Sewer Revenue, 4.95%, 6/1/11*...................................................................... 5,300
6,000 Franklin County, Hospital Revenue, Holy Cross Health Systems, 5.10%, 6/1/16*................................ 6,000
11,500 Ohio Air Quality Development Authority, 5.50%, 12/1/15, LOC:
J.P. Morgan*.............................................................................................. 11,500
6,800 Ohio Air Quality Development Authority, Revenue, JMG Funding Limited Partnership, Series A, 5.00%, 4/1/28,
LOC: Societe Generale*.................................................................................... 6,800
7,050 Ohio State University, General Receipts, Series B, 5.05%, 12/1/12, Liquidity Agreement with Ohio State
University*............................................................................................... 7,050
2,700 Ohio Water Development Authority, PCR Bonds, Cleveland Illum,
Series A, 3.75%, 2/6/96................................................................................... 2,700
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
</TABLE>
Municipal Securities, continued:
Ohio, continued:
<TABLE>
<C> <S> <C>
5,500 Ohio Water Development Authority, Timken Co. Project, Refunding Series 1993, 5.10%, 5/1/07, LOC: Wachovia
Bank*..................................................................................................... $ 5,500
2,800 Student Loan Funding Corp., Cincinnati, Student Loan Revenue, Series A-3, 5.25%, 1/1/07, LOC: National
Westminster*.............................................................................................. 2,800
-----------
47,650
-----------
Pennsylvania (1.0%):
6,000 Penn State University, 4.00%, 12/18/96...................................................................... 6,036
-----------
South Carolina (2.8%):
1,700 Cherokee County, IDR Bonds, Oshkosh Truck Project, 5.25%, 8/1/19, LOC: Bank of Nova Scotia*................. 1,700
5,000 South Carolina Public Service Electric Authority, 3.50%, 3/8/96, LOC: NationsBank of North Carolina......... 5,000
1,500 South Carolina Capital Improvement, Series B, GO Bonds, 6.80%, 3/1/96....................................... 1,508
8,415 York County, PCR Bonds, North Carolina Electric Project NRU-84N-3, 3.75%, 9/15/14, LOC: CFC**............... 8,415
-----------
16,623
-----------
Tennessee (1.5%):
3,800 Oak Ridge, Industrial Board Economic Development Revenue Bonds, 5.20%, 5/1/09, LOC: ABM/AMRO Bank*.......... 3,800
5,000 Shelby County, Health Educational & Housing Facility, Board Hospital Revenue, Methodist Health System,
Series C, 3.90%, 8/1/15, MBIA**........................................................................... 5,000
-----------
8,800
-----------
Texas (21.7%):
4,590 Bexar, Army Retirement, Series 85-B, 3.70%, 7/1/11, LOC: Rabo Bank, Nederland*.............................. 4,590
10,200 Capital Health Facilities Development Corp., Island on Lake Travis Limited Project, 5.20%, 12/1/16, LOC:
Credit Suisse*............................................................................................ 10,200
3,100 Capital Industrial Development Corp., IDR Bonds, W.L. Gore & Assoc., Inc. Project, 3.40%, 12/1/15, LOC:
Morgan Guaranty........................................................................................... 3,100
4,000 Dallas Independent School District, 7.10%, 8/15/96, LOC: Nationsbank of Texas............................... 4,078
</TABLE>
CONTINUED
----
9
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
Municipal Securities, continued:
Texas, continued:
<C> <S> <C>
2,500 Gulf Coast, Industrial Development Authority, Texas Marine Term Revenue, Amoco Oil Co. Project, 3.55%,
6/1/95**.................................................................................................. $ 2,500
3,500 Gulf Coast Waste Disposal Authority, Amoco Oil Co. Project, 3.85%, 4/1/15**................................. 3,500
7,000 Hockley County, Industrial Development Corp., PCR Bonds, Amoco Oil Co. Project, 3.75%, 5/1/96**............. 7,000
10,000 Panhandle-Plains, Higher Education Authority, Series 91-A, 5.20%, 6/1/21, SLMA*............................. 10,000
13,500 Panhandle-Plains, Higher Education Authority, Series A, 5.20%, 6/1/23, SLMA*................................ 13,500
6,000 Sabine River Authority, PCR Bonds, Utilities Electric Co. Project,
Series C, 5.60%, 6/1/30, LOC: Union Bank of Switzerland*.................................................. 6,000
16,800 San Antonio, Health Facilities Development Corp., Hospital Revenue, Warm Springs Rehabilitation Foundation,
Series A, 5.35%, 6/1/08, LOC: NationsBank, Texas*......................................................... 16,800
5,900 San Antonio Housing Finance Corp., Harbor Cove Apartments Project, 5.30%, 6/1/06, LOC: Bank of America,
Chicago, Illinois*........................................................................................ 5,900
2,400 State of Texas Transportation, 3.65%, 8/20/96............................................................... 2,400
4,230 Texas Higher Education Authority, Series B, 5.15%, 12/1/25, FGIC*........................................... 4,230
7,500 Texas Public Finance Authority,
Series 93A, 3.75%, 1/17/96................................................................................ 7,500
18,000 Texas State Tax & Revenue Anticipation Notes, 4.75%, 8/30/96................................................ 18,098
8,100 Travis County, Housing Finance Corp., Multifamily Housing Revenue, Aspen Hills Apartments Project, 5.20%,
6/1/06, LOC: Bank of America, Chicago, Illinois*.......................................................... 8,100
-----------
127,496
-----------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
</TABLE>
Municipal Securities, continued:
<TABLE>
<C> <S> <C>
Utah (0.7%):
4,100 Salt Lake, Airport Revenue Bonds, Series A, 5.20%, 6/1/98, LOC: Credit Suisse*.............................. $ 4,100
-----------
Virginia (1.1%):
1,000 Fairfax County, Series A, GO Bonds, 6.90%, 6/1/08**......................................................... 1,033
5,300 Virginia Public School Authority, Series C, 5.00%, 8/1/96................................................... 5,345
-----------
6,378
-----------
Washington (1.5%):
3,715 Pierce County, Economic Development Corp., IDR Bonds, McFarland Cascade Project, 5.30%, 10/1/07, LOC: First
National Bank of Seattle*................................................................................. 3,715
5,000 Washington Public Power System, Revenue Bonds, Nuclear Project No. 3, Series 3A-1, 5.10%, 7/1/18 LOC: Bank
of America*............................................................................................... 5,000
-----------
8,715
-----------
West Virginia (1.8%):
2,400 Marion County, Community Solid Waste Disposal Facility, 5.15%, 10/1/17, LOC: National Westminster Bank*..... 2,400
4,700 Marion County, Community Solid Waste Disposal Facility, 5.25%, 10/1/17, LOC: National Westminster Bank*..... 4,700
3,300 West Virginia Public Energy Authority, Energy Revenue, Morgantown Assoc. Project, 3.70%, 2/12/96, LOC: Swiss
Bank...................................................................................................... 3,300
-----------
10,400
-----------
Wisconsin (2.8%):
1,460 Milwaukee, Series BQ, GO Bonds, 6.00%, 7/15/96.............................................................. 1,479
14,800 Wisconsin State Operating Notes, 4.50%, 6/17/96............................................................. 14,853
-----------
16,332
-----------
</TABLE>
CONTINUED
- ----
10
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------ -----------
Municipal Securities, continued:
<C> <S> <C>
Wyoming (0.4%):
2,500 Uinta County, PCR Bonds, Adjustable Rate-Amoco Standard Oil Co., 3.98%, 12/1/12*............................ $ 2,505
-----------
Total Municipal Securities 591,255
-----------
Total (Cost--$591,255)(a) $ 591,255
-----------
-----------
</TABLE>
- ------------
Percentages indicated are based on net assets of $586,490.
(a) Cost and value for federal income tax and financial reporting purposes
are the same.
* Variable rate securities having liquidity sources through bank letters of
credit and/or liquidity arrangements. 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 on December 31, 1995.
** Put and demand features exist allowing the Fund to require the repurchase of
the investments within variable time periods of less than one year.
AMBAC -- Insured by American Municipal Bond Assurance Corp.
CFC -- Insured by Commodities Futures Commission
FGIC -- Insured by Financial Guarantee Insurance Corp.
GO -- General Obligation
IDR -- Industrial Development Revenue
Collateralized by letters of credit issued by foreign or
LOC -- domestic banks or organizations
MBIA -- Insured by Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
SLMA -- Insured by Student Loan Marketing Association
SEE NOTES TO FINANCIAL STATEMENTS.
----
11
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------------- -----------
<C> <S> <C>
Municipal Securitites (99.6%):
Ohio (96.1%):
3,050 Clermont County Hospital Facilities,
Series B, 5.10%, 12/1/15, MBIA*........ $ 3,050
4,700 Columbus Sewer System, Revenue Bonds,
4.95%, 6/1/11*......................... 4,700
1,600 Cuyahoga County IDR Bonds, Series 1985,
5.05%, 12/1/15, LOC: Union Bank of
Switzerland*........................... 1,600
300 Cuyahoga County IDR Bonds, Series 1987,
5.20%, 4/1/12, LOC: Dresdner Bank*..... 300
1,500 Franklin County Hospital Authority,
5.15%, 5/1/15, LOC: National Bank of
Detroit*............................... 1,500
1,800 Franklin County Hospital Revenue, Holy
Cross Health Systems, 5.10%, 6/1/16*... 1,800
1,700 Franklin County IDR, Inland Products,
Inc. Project, 5.50%, 6/1/04*........... 1,700
2,000 Geauga County IDR, 4.90%, 4/1/04*........ 2,000
1,000 Greater Cleveland Regional Transit
Authority, 4.10%, 4/10/96.............. 1,001
500 Hamilton County Economic Development
Revenue, 3.75%, 6/15/05*............... 500
2,000 Hamilton County Hospital Revenue, 3.90%,
2/15/24*............................... 2,000
2,900 Hillsboro IDR, TD Manufacturing Co.,
5.50%, 6/1/97, LOC: Sanwa Bank*........ 2,900
500 Montgomery County, 5.25%, 5/15/25*....... 500
1,700 Ohio Air Quality Development Authority,
3.75%, 1/2/96.......................... 1,700
3,100 Ohio Air Quality Development Authority,
5.50%, 12/1/15, LOC:
J.P. Morgan*........................... 3,100
4,500 Ohio Air Quality Development Authority,
JMG Co., 5.00%, 4/1/28, LOC: Societe
Generale*.............................. 4,500
4,425 Ohio Air Quality Development Authority,
Series B, Refunding Revenue Bonds,
2/7/96, FGIC........................... 4,425
3,000 Ohio Air Quality Development Authority
Bonds, Series 1992, Timken Co., 5.10%,
6/1/01, LOC: Credit Suisse*............ 3,000
1,000 Ohio Court Street Center, 3.55%, 10/1/98,
LOC: Provident Bank*................... 1,000
2,850 Ohio Higher Education Facilities
Commission, Oberlin College Project,
5.00%, 10/1/15 LOC: Bank of Tokyo*..... 2,850
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------------- -----------
</TABLE>
Municipal Securitites, continued:
Ohio, continued:
<TABLE>
<C> <S> <C>
1,000 Ohio Higher Education Facilities, Mount
Union College Project, 5.15%,
5/1/11*................................ $ 1,000
1,500 Ohio Highway, GO, 3.75%, 5/15/96......... 1,502
3,400 Ohio Housing Finance Agency, Multi Family
Housing Revenue Bonds, 3.90%, 12/1/15
LOC: Morgan Guaranty Bank*............. 3,400
1,900 Ohio Natural Resources Facilities, 4.20%,
10/1/96................................ 1,906
1,000 Ohio School Districts Cash Flow, 4.52%,
6/28/96................................ 1,003
500 Ohio State University, Series B-85,
5.50%, 12/1/01, SBPA: National
Westminster Bank*...................... 500
3,000 Ohio Water Development Authority, Series
1992, Timken Co., 5.10%, 6/1/01, LOC:
Credit Suisse*......................... 3,000
2,500 Ohio Water Development Authority, 4.25%,
1/9/96, FGIC........................... 2,500
1,400 Ohio Water Development Authority, 3.50%,
2/9/96................................. 1,400
1,000 Ohio Water Development Authority, 3.40%,
2/15/96................................ 1,000
1,000 Ross County Hospital Facilities, 5.15%,
12/1/20, LOC: Fifth Third Bank*........ 1,000
3,900 Saint Mary's IDR, 5.80%, 12/1/01, LOC:
Industrial Bank of Japan*.............. 3,900
1,000 Shaker Heights, 4.30%, 10/18/96.......... 1,003
2,000 Student Loan Funding Corp., Cincinnati,
Series A-2, 5.25%, 1/1/07, LOC:
National Westminster Bank*............. 2,000
4,000 Summit County, 5.00%, 3/7/96............. 4,002
2,000 Toledo, (Lucas County), 3.65%, 2/13/96... 2,000
1,300 Toledo, (Lucas County), 3.75%, 1/12/96,
LOC: Bank of Nova Scotia............... 1,300
2,400 Toledo, (Lucas County), Port Authority,
3.75%, 2/7/96, LOC: Bank of Nova
Scotia................................. 2,400
1,300 University of Cincinnati, Ohio General
Receipts, 5.00%, 3/21/96............... 1,301
438 Warren County, 4.58%, 9/5/96............. 440
2,100 Wooster IDR, Allen Group, 5.05%, 12/1/10,
LOC: Dresdner Bank*.................... 2,100
-----------
Total Ohio 82,783
-----------
</TABLE>
CONTINUED
- ----
12
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------------- -----------
Municipal Securitites, continued:
<C> <S> <C>
Puerto Rico (3.5%):
2,000 Government Development Bank
Puerto Rico, 3.65%, 1/11/96............ $ 2,000
1,000 Government Development Bank
Puerto Rico, 3.40%, 1/12/96............ 1,000
-----------
Total Puerto Rico 3,000
-----------
Total Municipal Securities 85,783
-----------
Total Investments (Cost--$85,783)(a) $ 85,783
-----------
-----------
</TABLE>
- ------------
Percentages indicated are based on net assets of $86,125.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity sources through bank letters of
credit and/or liquidity arrangements. 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
effective rate at December 31, 1995.
<TABLE>
<S> <C>
FGIC Insured by Financial Guarantee Insurance Company
GO General Obligation
IDR Industrial Development Revenue
LOC Collateralized by letters of credit issued by foreign or domestic banks or organizations
MBIA Insured by Municipal Bond Insurance Association
SBPA Standby Bond Purchase Agreement
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
----
13
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands except
Per Share Amounts)
U.S.
TREASURY PRIME OHIO
SECURITIES MONEY MUNICIPAL MUNICIPAL
MONEY MARKET MARKET MONEY MONEY
FUND FUND MARKET FUND MARKET FUND
------------ --------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value.......................................... $ 293,705 $2,079,043 $ 591,255 $ 85,783
Repurchase agreements.......................................... 1,125,000 334,721
------------ --------- ----------- -----------
1,418,705 2,413,764 591,255 85,783
Cash........................................................... 4 141
Interest receivable............................................ 4,804 6,761 3,769 626
Receivable from brokers for investments sold................... 350
Receivable from advisor........................................ 175 227 96 23
Organizational expenses and other assets....................... 2
Prepaid expenses............................................... 34 66 13 81
------------ --------- ----------- -----------
Total Assets................................................... 1,423,722 2,420,818 595,624 86,515
------------ --------- ----------- -----------
LIABILITIES:
Dividends payable.............................................. 6,371 11,302 1,904 335
Cash overdraft................................................. 22
Accrued expenses and other payables:
Investment advisory fees................................... 415 723 179 29
Administration fees........................................ 226 397 96 16
12b-1 fees (Class A)....................................... 20 60 14 11
Other...................................................... 79 258 39
------------ --------- ----------- -----------
Total Liabilities.............................................. 7,111 12,740 2,232 413
------------ --------- ----------- -----------
NET ASSETS:
Capital........................................................ 1,416,611 2,408,104 593,523 86,102
Undistributed (distributions in excess of) net investment
income....................................................... 43 7 (128)
Accumulated undistributed net realized losses from investment
transactions................................................. (43) (33) (3)
------------ --------- ----------- -----------
Net Assets..................................................... $1,416,611 $2,408,078 $ 593,392 $ 86,102
------------ --------- ----------- -----------
------------ --------- ----------- -----------
Net Assets
Fiduciary.................................................. $1,324,617 $2,125,496 $ 526,145 $ 41,715
Class A.................................................... 91,994 282,582 67,247 44,387
------------ --------- ----------- -----------
Total.................................................. $1,416,611 $2,408,078 $ 593,392 $ 86,102
------------ --------- ----------- -----------
------------ --------- ----------- -----------
Outstanding shares of beneficial interest
Fiduciary.................................................. 1,324,614 2,125,522 526,262 41,714
Class A.................................................... 91,995 282,582 67,261 44,388
------------ --------- ----------- -----------
Total.................................................. 1,416,609 2,408,104 593,523 86,102
------------ --------- ----------- -----------
------------ --------- ----------- -----------
Net asset value--offering and redemption price per share
(Fiduciary and
Class A shares).............................................. $1.00 $1.00 $1.00 $1.00
------------ --------- ----------- -----------
------------ --------- ----------- -----------
Investments, at cost........................................... $ 1,418,705 $2,413,764 $ 591,255 $ 85,783
------------ --------- ----------- -----------
------------ --------- ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----
14
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1995
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
U.S. TREASURY PRIME
SECURITIES MONEY MUNICIPAL
MONEY MARKET MARKET MONEY
FUND FUND MARKET FUND
-------------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income...................................................................... $ 38,495 $ 70,435 $ 11,398
Dividend income...................................................................... 184
------- ---------- -----------
Total Income......................................................................... 38,495 70,435 11,582
------- ---------- -----------
EXPENSES:
Investment advisory fees............................................................. 2,300 4,097 1,039
Administration fees.................................................................. 1,099 1,959 497
12b-1 fees (Class A)................................................................. 161 438 115
Custodian and accounting fees........................................................ 60 75 41
Legal and audit fees................................................................. 112 189 95
Trustees' fees and expenses.......................................................... 14 23 11
Transfer agent fees.................................................................. 30 103 49
Registration and filing fees......................................................... 67 96 50
Printing costs....................................................................... 20 33 22
Other................................................................................ 60 14 17
------- ---------- -----------
Total expenses before waivers/reimbursements......................................... 3,923 7,027 1,936
Less waivers/reimbursements.......................................................... (1,005) (1,624) (624)
------- ---------- -----------
Net Expenses......................................................................... 2,918 5,403 1,312
------- ---------- -----------
Net Investment Income................................................................ 35,577 65,032 10,270
------- ---------- -----------
REALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions............................. (18) 3 (3)
------- ---------- -----------
Change in net assets resulting from operations....................................... $ 35,559 $ 65,035 $ 10,267
------- ---------- -----------
------- ---------- -----------
<CAPTION>
OHIO
MUNICIPAL
MONEY
MARKET FUND
-----------
<S> <C>
INVESTMENT INCOME:
Interest income...................................................................... $ 1,768
Dividend income...................................................................... 9
-----------
Total Income......................................................................... 1,777
-----------
EXPENSES:
Investment advisory fees............................................................. 159
Administration fees.................................................................. 76
12b-1 fees (Class A)................................................................. 76
Custodian and accounting fees........................................................ 6
Legal and audit fees................................................................. 10
Trustees' fees and expenses.......................................................... 1
Transfer agent fees.................................................................. 37
Registration and filing fees......................................................... 11
Printing costs....................................................................... 2
Other................................................................................ 4
-----------
Total expenses before waivers/reimbursements......................................... 382
Less waivers/reimbursements.......................................................... (148)
-----------
Net Expenses......................................................................... 234
-----------
Net Investment Income................................................................ 1,543
-----------
REALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions.............................
-----------
Change in net assets resulting from operations....................................... $ 1,543
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
----
15
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. TREASURY
SECURITIES MONEY PRIME MONEY MARKET MUNICIPAL MONEY MARKET OHIO MUNICIPAL MONEY
MARKET FUND FUND FUND MARKET FUND
---------------------- ---------------------- ---------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER JUNE 30, DECEMBER JUNE 30, DECEMBER JUNE 30, DECEMBER JUNE 30,
31, 1995 1995 31, 1995 1995 31, 1995 1995 31, 1995 1995
----------- --------- ----------- --------- ----------- --------- ----------- ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.... $ 35,577 $ 59,506 $ 65,032 $ 103,272 $ 10,270 $ 16,629 $ 1,543 $ 2,785
Net realized gains
(losses) from
investment
transactions........... (18) 14 3 (3) (126)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
Change in net assets
resulting from
operations................. 35,559 59,520 65,035 103,272 10,267 16,503 1,543 2,785
----------- --------- ----------- --------- ----------- --------- ----------- ---------
DISTRIBUTIONS TO FIDUCIARY
SHAREHOLDERS:
From net investment
income................. (33,176) (56,332) (58,342) (96,873) (9,198) (15,228) (824) (1,535)
In excess of net
investment income...... (43)
From net realized gains
from investment
transactions........... (4)
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................. (2,385) (3,144) (6,663) (6,244) (1,061) (1,358) (709) (1,240)
In excess of net
investment income...... (30) (142) (10)
DISTRIBUTIONS TO SERVICE
SHAREHOLDERS (A):
From net investment
income................. (13)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
Change in net assets from
shareholder
distributions.............. (35,561) (59,506) (65,005) (103,272) (10,263) (16,629) (1,533) (2,785)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 1,764,247 3,158,947 2,477,604 4,749,069 809,238 1,502,281 165,253 376,500
Dividends reinvested..... 2,114 4,531 6,297 13,261 915 2,064 578 1,226
Cost of shares
redeemed............... (1,626,562) (2,909,428) (2,243,237) (4,270,622) (711,026) (1,404,255) (167,335) (382,861)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
Change in net assets from
share transactions......... 139,799 254,050 240,664 491,708 99,127 100,090 (1,504) (5,135)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
Change in Net Assets......... 139,797 254,064 240,694 491,708 99,131 99,964 (1,494) (5,135)
NET ASSETS:
Beginning of period...... 1,276,814 1,022,750 2,167,384 1,675,676 494,261 394,297 87,596 92,731
----------- --------- ----------- --------- ----------- --------- ----------- ---------
End of period............ $1,416,611 $1,276,814 $2,408,078 $2,167,384 $ 593,392 $ 494,261 $ 86,102 $ 87,596
----------- --------- ----------- --------- ----------- --------- ----------- ---------
----------- --------- ----------- --------- ----------- --------- ----------- ---------
SHARE TRANSACTIONS:
Issued................... 1,764,247 3,158,947 2,477,604 4,749,069 809,238 1,502,281 165,253 376,500
Reinvested............... 2,114 4,531 6,297 13,261 915 2,064 578 1,226
Redeemed................. (1,626,562) (2,909,428) (2,243,237) (4,270,622) (711,026) (1,404,255) (167,335) (382,861)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
----------- --------- ----------- --------- ----------- --------- ----------- ---------
Change in shares............. 139,799 254,050 240,664 491,708 99,127 100,090 (1,504) (5,135)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
----------- --------- ----------- --------- ----------- --------- ----------- ---------
Undistributed (distributions
in excess of) net
investment income included
in net assets:
End of period............ $ 43 $ 27 $ 7 $ (20) $ (128) $ (139) $ (10)
----------- --------- ----------- --------- ----------- --------- ----------- ---------
----------- --------- ----------- --------- ----------- --------- ----------- ---------
</TABLE>
- ------------
(a) The Service Shares commenced offering on January 17, 1994, when they were
designated as "Retirement" Shares. On April 4, 1995, the name of the
Retirement Shares was changed to "Service" Shares. As of May 2, 1995, Service
Shares transferred to Class A Shares, and as of June 30, 1995, there were no
shareholders in the Service Class.
SEE NOTES TO FINANCIAL STATEMENTS.
- ----
16
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995
(Unaudited)
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-three funds. The accompanying financial
statements and financial highlights are those of the Prime Money Market
Fund, the U.S. Treasury Securities Money Market Fund, the Municipal Money
Market Fund, and the Ohio Municipal Money Market Fund (individually, a
"Fund"; collectively, the "Funds") only. The Prime Money Market Fund and the
U.S. Treasury Securities Money Market Fund are each offered in Fiduciary
Class, Class A and Service Class Shares. As of December 31, 1995, there were
no Service Class shareholders. The Municipal Money Market Fund and the Ohio
Municipal Money Market Fund are each offered in Fiduciary Class and Class A
Shares. Each Fund is a diversified mutual fund, except for the Ohio
Municipal Money Market Fund, which is non-diversified.
The Trust entered into an Agreement and Plan of Reorganization (the
"Agreement") with The Paragon Portfolio ("Paragon"), a Massachusetts
business trust. The Agreement contemplates the transfer of all of the assets
and liabilities of each Paragon Fund in exchange for shares of the
corresponding One Group Fund. The Trustees of Paragon intend to seek
approval of the Agreement at a special shareholder meeting to be held March
25, 1996.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies in conformity
with generally accepted accounting principles consistently followed by the
Trust in preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
SECURITY VALUATION
Securities are valued utilizing the amortized cost method permitted in
accordance with Rule 2a-7 under the 1940 Act. Under the amortized cost
method, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the Funds may not (a) purchase any
instrument with a remaining maturity greater than thirteen months unless
such instrument is subject to a demand feature, or (b) maintain a
dollar-weighted-average maturity which exceeds 90 days.
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 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.
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. Interest income, including any discount or premium, is
accrued as earned using the effective interest method.
CONTINUED
----
17
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
(Unaudited)
SECURITIES LENDING
To general 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 credit worthy 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
December 31, 1995, the following Funds had securities with the following
market values on loan (amounts in thousands):
<TABLE>
<CAPTION>
MARKET VALUE OF
LOANED SECURITIES
------------------
<S> <C>
U.S. Treasury Securities Money Market Fund......................................... $ 113,969
</TABLE>
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 daily and paid monthly.
Net income for this purpose consists of interest accrued and discount
earned (including both original issue discount and market discount) less
amortization of any market premium and accrued expenses. 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 of 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
- ----
18
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
(Unaudited)
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
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 of net investment income and net realized capital gains
sufficient to relieve it from all, or substantially all, federal income
taxes.
ESTIMATES
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.
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 twenty-nine 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 December
31, 1995 and June 30, 1995:
CONTINUED
----
19
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES
MONEY MARKET FUND PRIME MONEY MARKET FUND
----------------------------- -----------------------------
YEAR YEAR
ENDED ENDED
JUNE 30, SIX MONTHS JUNE 30,
1995 ENDED 1995
------------- DECEMBER 31, -------------
1995
--------------
SIX MONTHS (UNAUDITED)
ENDED
DECEMBER 31,
1995
--------------
(UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Fiduciary Shares:
Proceeds from shares issued.............................. $ 1,586,193 $ 2,783,997 $ 1,888,343 $ 3,951,914
Dividends reinvested..................................... 180 1,467 1,040 7,187
Shares redeemed.......................................... (1,439,829) (2,576,713) (1,729,305) (3,594,562)
-------------- ------------- -------------- -------------
Change in net assets from
Fiduciary share transactions........................... $ 146,544 $ 208,751 $ 160,078 $ 364,539
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
Class A Shares:
Proceeds from shares issued.............................. $ 178,054 $ 374,950 $ 589,261 $ 796,201
Dividends reinvested..................................... 1,934 3,064 5,257 6,061
Shares redeemed.......................................... (186,733) (332,715) (513,932) (675,053)
-------------- ------------- -------------- -------------
Change in net assets from
Class A share transactions............................. $ (6,745) $ 45,299 $ 80,586 $ 127,209
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
Service Shares:
Proceeds from shares issued.............................. $ 954
Dividends reinvested..................................... 13
Shares redeemed.......................................... (1,007)
-------------- ------------- -------------- -------------
Change in net assets from
Service share transactions............................. $ (40)
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
SHARE TRANSACTIONS:
Fiduciary Shares:
Issued................................................... 1,586,193 2,783,997 1,888,343 3,951,914
Reinvested............................................... 180 1,467 1,040 7,187
Redeemed................................................. (1,439,829) (2,576,713) (1,729,305) (3,594,562)
-------------- ------------- -------------- -------------
Change in Fiduciary Shares............................... 146,544 208,751 160,078 364,539
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
Class A Shares:
Issued................................................... 178,054 374,950 589,261 796,201
Reinvested............................................... 1,934 3,064 5,257 6,061
Redeemed................................................. (186,733) (332,715) (513,932) (675,053)
-------------- ------------- -------------- -------------
Change in Class A Shares................................. (6,745) 45,299 80,586 127,209
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
Service Shares:
Issued................................................... 954
Reinvested............................................... 13
Redeemed................................................. (1,007)
-------------- ------------- -------------- -------------
Change in Service Shares................................. (40)
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
</TABLE>
CONTINUED
- ----
20
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
(Amounts in Thousands)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND OHIO MUNICIPAL MONEY MARKET
FUND
----------------------------- ---------------------------
YEAR YEAR
ENDED ENDED
JUNE 30, SIX MONTHS JUNE 30,
1995 ENDED 1995
------------- DECEMBER 31, -----------
1995
SIX MONTHS --------------
ENDED (UNAUDITED)
DECEMBER 31,
1995
--------------
(UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Fiduciary Shares:
Proceeds from shares issued................................ $ 637,636 $ 1,202,916 $ 73,264 $ 182,275
Dividends reinvested....................................... 70 738 27 41
Shares redeemed............................................ (549,300) (1,118,500) (83,383) (185,885)
-------------- ------------- -------------- -----------
Change in net assets from
Fiduciary share transactions............................. $ 88,406 $ 85,154 $ (10,092) $ (3,569)
-------------- ------------- -------------- -----------
-------------- ------------- -------------- -----------
Class A Shares:
Proceeds from shares issued................................ $ 171,602 $ 299,365 $ 91,989 $ 194,225
Dividends reinvested....................................... 845 1,326 551 1,185
Shares redeemed............................................ (161,726) (285,755) (83,952) (196,976)
-------------- ------------- -------------- -----------
Change in net assets from
Class A share transactions............................... $ 10,721 $ 14,936 $ 8,588 $ (1,566)
-------------- ------------- -------------- -----------
-------------- ------------- -------------- -----------
SHARE TRANSACTIONS:
Fiduciary Shares:
Issued..................................................... 637,636 1,202,916 73,264 182,275
Reinvested................................................. 70 738 27 41
Redeemed................................................... (549,301) (1,118,500) (83,383) (185,885)
-------------- ------------- -------------- -----------
Change in Fiduciary Shares................................. 88,406 85,154 (10,092) (3,569)
-------------- ------------- -------------- -----------
-------------- ------------- -------------- -----------
Class A Shares:
Issued..................................................... 171,602 299,365 91,989 194,225
Reinvested................................................. 845 1,326 551 1,185
Redeemed................................................... (161,726) (285,755) (83,952) (196,976)
-------------- ------------- -------------- -----------
Change in Class A Shares................................... 10,721 14,936 8,588 (1,566)
-------------- ------------- -------------- -----------
-------------- ------------- -------------- -----------
</TABLE>
CONTINUED
----
21
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
4. INVESTMENT ADVISORY, ADMINISTRATION, 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 to
0.35% of the average daily net assets of the U.S. Treasury Securities Money
Market Fund, the Prime Money Market Fund, and the Municipal Money Market
Fund and 0.30% of the average daily net assets of the Ohio Municipal Money
Market Fund.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administration agreement under which the Administrator provides services for
a fee that is computed daily and payable monthly at an annual rate of 0.20%
of each fund's average daily net assets 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% on 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 Adviser
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 under essentially the same terms as the current 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 shares and Service Class 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 Plan, 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 0.75% of the average daily net assets of the
Service Class shares of each of the Funds. Currently, the Distributor has
voluntarily agreed to limit payments under the Plan to 0.25% of average
daily net assets of the Class A shares of each Fund and 0.55% of average
daily net assets of the Service Class shares of each Fund. Up to 0.25% of
the fees payable under the Plan may be used as compensation for shareholder
services by the Distributor and/or financial institutions and
intermediaries. Fees paid under the Plan 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.
Certain officers of the Trust are affiliated with the Adviser or the
Administrator. Such officers receive no compensation from the Funds for
serving in their respective roles.
CONTINUED
- ----
22
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
The Adviser and the Administrator voluntarily agreed to waive a portion of
their fees and to reimburse the Funds for certain expenses so that total
expenses of each Fund would not exceed certain annual expense limitations.
For the six months ended December 31, 1995, fees in the following amounts
were waived or reimbursed to the Funds (amounts in thousands):
<TABLE>
<CAPTION>
U.S. TREASURY PRIME OHIO
SECURITIES MONEY MUNICIPAL MUNICIPAL
MONEY MARKET MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
------------- --------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Waivers/reimbursements............................................ $ 930 $ 1,499 $ 500 $ 77
ADMINISTRATION FEES:
Waivers/reimbursements............................................ $ 29 $ 91 $ 49
12B-1 FEES (CLASS A):
Waivers/reimbursements............................................ $ 46 $ 125 $ 33 $ 22
</TABLE>
5. CONCENTRATION OF CREDIT RISK:
The Ohio Municipal Money Market Fund invests primarily in debt obligations
issued by the State of Ohio and its political subdivisions, agencies and
public authorities to obtain funds for various public purposes. The Fund is
more susceptible to economic and political factors adversely affecting
issuers of Ohio's specific municipal securities than are municipal bond
funds that are not concentrated in these issuers to the same extent.
CONTINUED
----
23
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------
FIDUCIARY CLASS A
------------------------------------------------------- --------------------------------------------------
YEARS ENDED JUNE 30, YEARS ENDED JUNE 30,
---------------------------------------- -----------------------------------
1995 1994 1993 1992 1995 1994 1993 1992(A)
---------- -------- -------- -------- SIX MONTHS ------- ------- -------- -------
SIX MONTHS ENDED
ENDED DECEMBER 31,
DECEMBER 31, 1995
1995 ------------
------------ (UNAUDITED)
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000
------------ ---------- -------- -------- -------- ------------ ------- ------- -------- -------
Investment
Activities
Net investment
income............ 0.027 0.050 0.030 0.029 0.043 0.026 0.047 0.027 0.026 0.012
------------ ---------- -------- -------- -------- ------------ ------- ------- -------- -------
Less: Distributions
Net investment
income............ (0.027) (0.050) (0.030) (0.029) (0.043) (0.026) (0.047) (0.027) (0.026) (0.012)
------------ ---------- -------- -------- -------- ------------ ------- ------- -------- -------
NET ASSET VALUE,
END OF PERIOD..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000
------------ ---------- -------- -------- -------- ------------ ------- ------- -------- -------
------------ ---------- -------- -------- -------- ------------ ------- ------- -------- -------
Total Return........ 2.77%(c) 5.07% 3.01% 2.89% 4.40% 2.64%(c) 4.81% 2.76% 2.63% 3.38%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period
(000)........... $1,324,617 $1,178,091 $969,326 $492,862 $410,146 $91,994 $98,723 $53,423 $ 30,759 $ 6
Ratio of expenses
to average net
assets.......... 0.43%(b) 0.41% 0.40% 0.45% 0.55% 0.68%(b) 0.66% 0.63% 0.65% 0.59%(b)
Ratio of net
investment
income to
average net
assets.......... 5.48%(b) 4.96% 3.02% 2.85% 4.25% 5.23%(b) 4.71% 2.81% 2.52% 2.51%(b)
Ratio of expenses
to average net
assets *........ 0.57%(b) 0.59% 0.58% 0.67% 0.77% 0.92%(b) 0.94% 0.87% 1.02% 0.71%(b)
Ratio of net
investment
income to
average net
assets *........ 5.34%(b) 4.78% 2.84% 2.63% 4.04% 4.99%(b) 4.43% 2.57% 2.15% 2.39%(b)
</TABLE>
- -------------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been
as indicated.
(a) Class A shares commenced offering on February 18, 1992.
(b) Annualized.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
- ----
24
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
---------------------------------------------------------
FIDUCIARY
---------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED JUNE 30,
DECEMBER 31, ------------------------------------------
1995 1995 1994 1993 1992
------------ ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ---------- ---------- -------- --------
Investment
Activities
Net investment
income........... 0.028 0.052 0.031 0.030 0.045
------------ ---------- ---------- -------- --------
Less: Distributions
Net investment
income........... (0.028) (0.052) (0.031) (0.030) (0.045)
------------ ---------- ---------- -------- --------
NET ASSET VALUE,
END OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ---------- ---------- -------- --------
Total Return....... 2.84%(d) 5.34% 3.19% 3.09% 4.64%
RATIOS/
SUPPLEMENTARY
DATA:
Net Assets at end
of period
(000).......... $2,125,496 $1,965,416 $1,600,876 $979,275 $946,504
Ratio of expenses
to average net
assets......... 0.44%(c) 0.41% 0.40% 0.44% 0.59%
Ratio of net
investment
income to
average net
assets......... 5.63%(c) 5.27% 3.18% 3.05% 4.49%
Ratio of expenses
to average net
assets*........ 0.55%(c) 0.57% 0.59% 0.62% 0.76%
Ratio of net
investment
income to
average net
assets*........ 5.52%(c) 5.12% 2.99% 2.87% 4.32%
<CAPTION>
CLASS A
-------------------------------------------------
SIX MONTHS
ENDED
YEARS ENDED JUNE 30,
DECEMBER 31, -----------------------------------------------------------------
1995 1995 1994 1993 1992 (B) 1995 1994
------------ -------- ------- ------ ------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 1.000 $ 1.000 $ 1.000 $1.000 $1.000 $1.000 $1.000
------------ -------- ------- ------ ------- ----------- ------
Investment
Activities
Net investment
income........... 0.027 0.050 0.027 0.030 0.013 0.041 0.008
------------ -------- ------- ------ ------- ----------- ------
Less: Distributions
Net investment
income........... (0.027) (0.050) (0.027) (0.030) (0.013) (0.041) (0.008)
------------ -------- ------- ------ ------- ----------- ------
NET ASSET VALUE,
END OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $1.000 $1.000 $1.000 $1.000
------------ -------- ------- ------ ------- ----------- ------
Total Return....... 2.72%(d) 5.08% 2.93% 2.83% 3.51%(c) (a) 0.79%(d)
RATIOS/
SUPPLEMENTARY
DATA:
Net Assets at end
of period
(000).......... $282,582 $201,968 $74,759 $61,106 $ 511 $ 40
Ratio of expenses
to average net
assets......... 0.69%(c) 0.67% 0.65% 0.65% 0.79%(c) 1.42%(c) 1.18%(c)
Ratio of net
investment
income to
average net
assets......... 5.38%(c) 5.02% 2.92% 2.67% 3.40%(c) 4.52%(c) 3.03%(c)
Ratio of expenses
to average net
assets*........ 0.90%(c) 0.92% 0.90% 0.99% 0.94%(c) 1.60%(c) 1.36%(c)
Ratio of net
investment
income to
average net
assets*........ 5.17%(c) 4.77% 2.67% 2.33% 3.25%(c) 5.23%(c) 2.85%(c)
</TABLE>
- -------------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been
as indicated.
(a) The Service Shares commenced offering on January 17, 1994 when they
were designated as "Retirement" Shares. On April 4, 1995, the name of
the Retirement Shares was changed to "Service" Shares. As of June 1,
1995, Service Shares transferred to Class A Shares. As of June 30,
1995 and through December 31, 1995, there were no shareholders in the
Service Class. The return for the period from July 1, 1994 to June 1,
1995 was 4.11%.
(b) Class A shares commenced offering on February 18, 1992.
(c) Annualized.
(d) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
----
25
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------
FIDUCIARY CLASS A
----------------------------------------------------- --------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED JUNE, 30 ENDED YEARS ENDED JUNE, 30
DECEMBER 31, -------------------------------------- DECEMBER 31, -----------------------------------
1995 1995 1994 1993 1992 1995 1995 1994 1993 1992 (A)
------------ -------- -------- -------- -------- ------------ ------- ------- ------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000
------------ -------- -------- -------- -------- ------------ ------- ------- ------- --------
Investment Activities
Net investment
income.............. 0.018 0.032 0.021 0.021 0.034 0.016 0.030 0.021 0.019 0.009
------------ -------- -------- -------- -------- ------------ ------- ------- ------- --------
Less: Distributions
Net investment
income.............. (0.018) (0.032) (0.021) (0.021) (0.034) (0.016) (0.030) (0.021) (0.019) (0.009)
------------ -------- -------- -------- -------- ------------ ------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD....... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000
------------ -------- -------- -------- -------- ------------ ------- ------- ------- --------
------------ -------- -------- -------- -------- ------------ ------- ------- ------- --------
Total Return.......... 1.77%(c) 3.28% 2.16% 2.15% 3.47% 1.64%(c) 3.02% 1.96% 1.89% 2.48%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)...... $526,145 $437,743 $352,702 $175,277 $170,961 $ 67,247 $56,518 $41,595 $18,932 $ 122
Ratio of expenses to
average net
assets............ 0.42%(b) 0.41% 0.40% 0.46% 0.43% 0.67%(b) 0.66% 0.65% 0.66% 0.84%(b)
Ratio of net
investment income
to average net
assets............ 3.52%(b) 3.26% 2.13% 2.12% 3.41% 3.27%(b) 3.01% 1.92% 1.82% 2.44%(b)
Ratio of expenses to
average net assets
*................. 0.58%(b) 0.59% 0.60% 0.66% 0.80% 0.93%(b) 0.94% 0.91% 1.01% 0.99%(b)
Ratio of net
investment income
to average net
assets *.......... 3.36%(b) 3.08% 1.93% 1.92% 3.04% 3.01%(b) 2.73% 1.66% 1.47% 2.29%(b)
</TABLE>
- -------------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been
as indicated.
(a) Class A shares commenced offering on February 18, 1992.
(b) Annualized.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
- ----
26
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
----------------------------------------------------------------------------------------
FIDUCIARY CLASS A
----------------------------------------- --------------------------------------------
SIX MONTHS YEARS ENDED JUNE JUNE 9, SIX MONTHS YEARS ENDED JUNE JANUARY 26,
ENDED 30, 1993 TO ENDED 30, 1993 TO
DECEMBER 31, ---------------- JUNE 30, DECEMBER 31, ---------------- JUNE 30,
1995 1995 1994 1993 (A) 1995 1995 1994 1993 (A)
------------ ------- ------- -------- ------------ ------- ------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................. $ 1.000 $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ------- ------- -------- ------------ ------- ------- -----------
Investment Activities
Net investment income............... 0.018 0.032 0.022 0.013 0.016 0.029 0.021 0.009
------------ ------- ------- -------- ------------ ------- ------- -----------
Less: Distributions
Net investment income............... (0.018) (0.032) (0.022) (0.013) (0.016) (0.029) (0.021) (0.009)
------------ ------- ------- -------- ------------ ------- ------- -----------
NET ASSET VALUE,
END OF PERIOD....................... $ 1.000 $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ------- ------- -------- ------------ ------- ------- -----------
------------ ------- ------- -------- ------------ ------- ------- -----------
Total Return.......................... 1.77%(c) 3.20% 2.25% 2.14%(b) 1.65%(c) 2.98% 2.09% 2.34%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)... $41,726 $51,806 $55,375 $3,500 $44,399 $35,790 $37,356 $25,125
Ratio of expenses to average net
assets............................ 0.40%(b) 0.41% 0.34% 0.08%(b) 0.64%(b) 0.63% 0.44% 0.26%(b)
Ratio of net investment income to
average net assets................ 3.53%(b) 3.13% 2.29% 2.07%(b) 3.29%(b) 2.91% 2.05% 2.03%(b)
Ratio of expenses to average net
assets *.......................... 0.56%(b) 0.60% 0.57% 0.51%(b) 0.90%(b) 0.95% 0.94% 0.92%(b)
Ratio of net investment income to
average net assets *.............. 3.37%(b) 2.94% 2.06% 1.64%(b) 3.03%(b) 2.59% 1.55% 1.37%(b)
</TABLE>
- -------------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been
as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
----
27
<PAGE>
<TABLE>
<S> <C>
May Lose Value
NOT FDIC-INSURED No Bank Guarantee
</TABLE>
<PAGE>
Important Customer Information. Please Read:
Shares of The One Group:
- - are not deposits or obligations of, or guaranteed by BANC ONE CORPORATION or
its bank or non- bank 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. 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. AN INVESTMENT IN THE MONEY MARKET FUNDS IS NEITHER INSURED
NOR GUARANTEED BY THE U.S. GOVERNMENT. YIELDS WILL FLUCTUATE AND THERE CAN BE NO
ASSURANCE THAT THE FUNDS WILL BE ABLE TO MAINTAIN A STABLE NAV OF $1.00 PER
SHARE.
<TABLE>
<S> <C>
TOG-F-040 [THE ONE GROUP LOGO]
</TABLE>
<PAGE>
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