<PAGE> 1
Growth
Funds
Annual Report
For the year ended June 30, 1997
Asset Allocation Fund
Income Equity Fund
Equity Index Fund
Value Growth Fund
Large Company Value Fund
Disciplined Value Fund
Large Company Growth Fund
Growth Opportunities Fund
Gulf South Growth Fund
International Equity Index Fund
[THE ONE GROUP FAMILY OF MUTUAL FUNDS LOGO]
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Important Customer Information. Investment Products:
* are not deposits or obligations of, or guaranteed by,
BANC ONE CORPORATION or any of its affiliates,
* are not insured by the FDIC, and
----
* are subject to investment risks, including possible FDIC
loss of the principal amount invested. LOGO
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TABLE OF CONTENTS
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THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
Report From Your Investment Advisor........................................ 2
Portfolio Performance Review............................................... 4
Schedules of Portfolio Investments......................................... 25
Statements of Assets and Liabilities....................................... 73
Statements of Operations................................................... 75
Statements of Changes in Net Assets........................................ 77
Notes to Financial Statements.............................................. 81
Financial Highlights....................................................... 96
Report of Independent Accountants........................................... 126
1
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REPORT FROM YOUR INVESTMENT ADVISOR
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THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
We are pleased to present this annual report for The One Group Family of Mutual
Funds. On the following pages you will find an overview of the financial markets
and your fund's performance for the period from July 1, 1996, to June 30, 1997.
DEAR VALUED SHAREHOLDERS:
Thank you for continuing to place your confidence in The One Group Family of
Mutual Funds. In the funds' semiannual report, we advised you to stay focused on
your financial goals and not to let short-term volatility interfere with your
long-term investment strategy. At that time, stock returns were abnormally
strong, and bond returns were unusually weak.
Since then, the bond market has recovered nicely, and the stock market continues
to soar--even after falling nearly 10% between March 12 and April 14. In fact,
by early May, the stock market had regained what it had lost and was well on its
way to new heights. Looking forward, investors should be prepared for continued
volatility as the market reacts to earnings reports, moves by the Federal
Reserve, and the continuous stream of economic data coming from Washington.
REINFORCING OUR PHILOSOPHY
Once again, I want to reiterate our philosophy that it's time, not timing, that
best serves investors. By maintaining a long-term perspective and riding out the
inevitable volatility in the markets, your investments may realize their full
potential. For those who stay on track with their investment plans, short-term
performance fluctuations may not matter in the long run.
The financial media will be filled with opinions about the expected short-term
course of the markets, and these opinions will swing between euphoria and gloom.
But the fundamentals supporting the financial markets--a growing economy, rising
corporate profits, low inflation--remain favorable, and long-term investors
should be rewarded by staying the course.
INVESTING MADE EASY
Along with maintaining a long-term perspective, we believe that investment
success is dependent on two other strategies:
- - ASSET ALLOCATION, or spreading your money among stocks, bonds and money market
investments according to your goals, time frame and risk tolerance in order
create a well-rounded investment plan.
- - DIVERSIFICATION, or investing in a variety of securities within each asset
class to enhance your return potential and limit your overall risk profile.
Over the past year, The One Group made it easier for you to take advantage of
these strategies by introducing THE ONE GROUP INVESTOR FUNDS. These funds make
it simple and convenient for you to enjoy asset allocation and diversification
from one investment (versus structuring an asset allocation portfolio by
purchasing multiple funds). Each Investor fund seeks a particular investment
goal and, accordingly, invests in an assortment of funds from The One Group
family. You simply choose the Investor Fund suited to your goals.
INFORMATION ON DEMAND
Along with making investing easy, we want to make it simple for you to obtain
the information you need when you want it. Now, in addition to offering fund
prices, fund performance information and fund manager biographies, The One Group
web site (WWW.ONEGROUP.COM) provides on-line fund prospectuses.
In addition, the site offers an interactive portfolio-building tool that you can
use to design a customized portfolio. Future plans for the site include
interactive retirement and college planning calculators as well as account
access, which will enable you to obtain information on your account and place
orders to buy or
exchange shares between funds.
LOOK FOR GUIDANCE
Perhaps one of the simplest ways to make investing easy is to seek guidance from
an experienced investment advisor. Achieving long-term investment success
depends on your investment plan and how your investment strategies are put to
work. It's the full-time responsibility of a professional investment advisor to
monitor the investment markets and evaluate the assortment of investment
opportunities in today's marketplace. Your investment advisor will help you
develop an effective investment plan and then implement and monitor that plan
for you.
2
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REPORT FROM YOUR INVESTMENT ADVISOR, continued
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THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
Once again, I appreciate the trust and confidence that you have placed in The
One Group Family of Mutual Funds. All of the professionals at The One Group
value your ongoing support and strive to help you achieve your financial goals
with investment solutions that are designed to meet your individual needs.
Sincerely,
/s/ DAVID J. KUNDERT
David J. Kundert
President and CEO,
Banc One Investment Advisors Corporation,
Investment Advisor to The One Group
David J. Kundert photo
For a prospectus with more complete information on The One Group Investor Funds,
including management fees and expenses, please contact The One Group at
1-800-480-4111. Please read the prospectus carefully before investing.
3
<PAGE> 6
The One Group Asset Allocation Fund
PORTFOLIO PERFORMANCE REVIEW
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THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
For the year ended June 30, 1997, The One Group Asset Allocation Fund Fiduciary
share class posted a total return of 20.16%. (For information on other share
classes and performance comparisons to indexes, please see page 6.)
Our research at the beginning of the fiscal year showed that stock valuations,
relative to bond valuations, were fairly high, but corporate earnings momentum,
or profitability, remained strong. As a result, we shifted the Fund's asset mix
slightly, to 54% stocks and 46% bonds, compared to 60% stocks and 40% bonds
during the previous fiscal year.
Relatively stable interest rates and solid earnings growth were the primary
forces at work in the bond and stock markets during the year. Without much
change in interest rates, there was little room for price appreciation in the
bond market, so returns consisted primarily of interest income. In the stock
market, strong corporate earnings helped push stocks to new heights.
EQUITY
The strong performance in the Fund's stock portfolio was due to our bottom-up
stock selection philosophy. Rather than emphasizing certain market sectors or
trying to time the market's moves, we research, evaluate and select stocks on an
individual basis to build a highly diversified portfolio. Because of this
approach, our stock portfolio represents a mix of four key equity
styles--large-capitalization growth, large-capitalization value,
medium-capitalization growth and medium-capitalization value.
We remained fully invested, focusing on stocks with an appealing combination of
good valuations and improving fundamentals.
FIXED INCOME
In the Fund's bond portfolio, our primary strategy was to maintain a neutral
duration posture of 4.1 years. (Duration is a measure of a Fund's price
sensitivity to interest rate changes. A longer duration indicates greater
sensitivity; a shorter duration indicates less.) We felt that the market was
fairly valued, and we didn't want to alter the portfolio's interest rate risk.
In addition, we maintained diversity among government, agency mortgage-backed
and corporate securities. Exposure to corporate and mortgage-backed securities
helped the Fund's performance, as these sectors outperformed government
securities on a relative basis. At the end of the fiscal year, 37% of the Fund's
bond portfolio was invested in government securities, 31% in mortgage-backed
securities and 32% in corporate and asset-backed securities.
Credit quality within the Fund's bond portfolio remained high, with 76% of the
portfolio's securities AAA-rated, 5% AA-rated, 14% A-rated and 6% BBB-rated. The
overall credit-quality rating of the bond portfolio was AAA-.
NOTABLE STOCK HOLDINGS
The equity portfolio benefited from particularly good stock selection in the
following sectors: technology (Intel, up 94%), health technology (Bristol
Meyers, up 85%), and energy, (Tosco, up 81%).
Three of the Fund's top 10 stock holdings changed during the year--AT&T, Royal
Dutch and Coca-Cola were replaced by Bristol Meyers, at 0.9% of assets on June
30, 1997; IBM, 0.9%; and Federal National Mortgage Association, 0.8%. The
remaining top 10 as of the end of the year included General Electric, 1.5% of
assets; Microsoft, 1.4%; Merck, 1.2%, Intel, 1.1%; Philip Morris, 1.1%; Exxon,
1.0%; and Wal-Mart, 1.0%.
OUTLOOK
We believe that equity and fixed-income securities will continue to benefit from
a strong economy, low inflation and low interest rates. In the stock market, we
expect returns to remain attractive, but we also think they will become more
subdued as we expect corporate earnings momentum to slow down. In addition, the
favoritism the market has shown toward large-capitalization growth stocks may be
fading, which would bode well for other areas of the stock market. In the bond
market, we expect yield fluctuations to be moderate and corporate credit
fundamentals to remain healthy. As such, we expect to maintain the Fund's
positions in the corporate and mortgage sectors.
Because stocks still appear fully valued compared to bonds, we expect to
maintain the Fund's current asset
4
<PAGE> 7
The One Group Asset Allocation Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
allocation mix (54% stocks and 46% bonds) and investment strategies in the
coming months. Of course, we will continue to monitor the valuation levels in
the financial markets and to watch for signs of inflationary pressures, as any
changes may warrant a shift in our strategy.
/s/ MICHAEL D. WEINER
Michael D. Weiner
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
/s/ SCOTT GRIMSHAW
Scott Grimshaw
Fund Manager
/s/ GARY J. MADICH
Gary J. Madich, CFA
Senior Managing Director of Fixed-Income Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
5
<PAGE> 8
The One Group Asset Allocation Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year (4/5/93)
------ --------
<S> <C> <C>
Fiduciary 20.16% 11.81%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 S&P/LIPPER MIX FIDUCIARY
--------------------- ------- -------------- ---------
<S> <C> <C> <C>
4/93 $10,000 $10,000 $10,000
6/93 10,298 10,241 10,129
6/94 10,442 10,260 10,027
6/95 13,165 12,218 11,636
6/96 16,588 14,245 13,356
6/97 22,343 17,395 16,048
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year (4/2/93)
------ ---------
<S> <C> <C>
Class A 19.85% 11.52%
Class A* 14.46% 10.31%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 S&P/LIPPER MIX CLASS A* CLASS A
--------------------- ------- -------------- -------- -------
<S> <C> <C> <C> <C>
4/93 $10,000 $10,000 $ 9,550 $10,000
6/93 10,298 10,241 9,668 10,124
6/94 10,442 10,260 9,553 10,003
6/95 13,165 12,218 11,057 11,580
6/96 16,588 14,245 12,657 13,257
6/97 22,343 17,395 15,166 15,888
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year (1/14/94)
------ ---------
<S> <C> <C>
Class B 18.90% 11.59%
Class B** 14.90% 10.93%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION> VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 S&P/LIPPER MIX CLASS B** CLASS B
--------------------- ------- -------------- ---------- -------
<S> <C> <C> <C> <C>
1/94 $10,000 $10,000 $ 1,000 $10,000
6/94 9,344 9,410 9,402 9,402
6/95 11,779 11,206 10,803 10,803
6/96 14,842 13,065 12,292 12,292
6/97 19,992 15,995 14,316 14,616
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Asset Allocation Fund is measured against the S&P 500
Index, an unmanaged index generally representative of the performance of large
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B Shares.
The S&P/Lipper Mix for all the classes is a blended index consisting of 60% of
the average monthly returns of the S&P 1500 Index from January 1, 1995 (index
inception date) until present and of the S&P 500 Index from April 1993 through
December 1995. The final 40% consists of the Lipper Intermediate US Government
Bond Funds Index.
6
<PAGE> 9
The One Group Income Equity Fund
PORTFOLIO PERFORMANCE REVIEW
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THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
For the year ended June 30, 1997, The One Group Income Equity Fund Fiduciary
share class posted a total return of 30.90%. (For information on other share
classes and performance comparisons to the index, please see page 8.)
The Fund has benefited from an economy that has exhibited steady growth, low
inflation, relatively low interest rates and strong corporate profits. These
factors all have helped fuel a powerful rise in common stock prices.
For the third-consecutive fiscal year, the Fund's total return exceeded 20%--an
extraordinary accomplishment for an income-oriented equity fund, and one we were
able to achieve in spite of the market's ongoing preference for large,
high-quality growth companies. Many of these companies do not pay dividends and,
therefore, cannot be included in the Income Equity Fund.
Our investment approach of maintaining a balance between equity investments
selected for income and those selected for appreciation potential has worked
well in this environment. Strong earnings performance by a number of companies
we own not only helped boost the share price of many stocks, but it also has
resulted in an acceleration in dividend increases, boosting the income level of
the Fund.
On average, the Fund held 89% of its assets in common stocks, 10% in convertible
securities and 1% in cash during the one-year period.
NOTABLE STOCK HOLDINGS
The Fund benefited from many outstanding results, particularly in these sectors:
finance (Allstate, American Express and Reliastar were up 50% or more); health
care (Bristol-Myers and Warner Lambert were up more than 60%); non-durables
(Campbell Soup was up 50%); energy (Exxon and Halliburton were up 40% or more);
and technology (Intel was up more than 90%). In all these cases, exceptional
earnings performance over several quarters led to the strong returns.
The Fund's disappointments were confined mostly to the interest-rate sensitive
groups such as telephone and electric utilities. For example, American Telephone
was down 40%, Central and Southwest was down 23% and Entergy was down 7%.
Competition among industry participants has been especially tough, leading to
slow growth or earnings problems. The Fund maintains limited exposure to these
areas, investing in them mostly for their attractive yields.
The Fund's holdings, including the top 10, changed significantly throughout the
year. This was due to a combination of factors, including price appreciation and
our buying and selling of securities. On June 30, 1997, the Fund's top 10
holdings consisted of Bristol Myers Squibb at 2.9% of Fund assets; General
Electric, 2.4%; BankAmerica, 2.4%; Royal Dutch Petroleum, 2.4%; American Express
2.3%; Exxon, 2.3%; Warner Lambert, 2.3%; Mobil Corp., 2.1%; Coca-Cola, 2.0%; and
Philip Morris, 2.0%.
OUTLOOK
Even though this market continues to set new records, it has not been a
forgiving market. Investors have shown little tolerance for companies reporting
bad news or earnings shortfalls. Our ongoing challenge is to avoid companies
with earnings problems and continue to rotate toward industries and companies
maintaining earnings growth.
Given the length and magnitude of this bull market, we have altered our
investment strategy. We believe that it's time to more aggressively take profits
from some of the Fund's past winners. We also are eliminating some of the
disappointments and re-investing the proceeds into new issues we believe have
the potential to become market leaders.
/s/ LYNN YTURRI
R. Lynn Yturri
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
7
<PAGE> 10
The One Group Income Equity Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year 10 Year (7/2/87)
------ ------ ------- ---------
<S> <C> <C> <C> <C>
Fiduciary 30.90% 17.85% 13.11% 13.10%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 FIDUCIARY
--------------------- ------- ---------
<S> <C> <C>
7/87 $10,000 $10,000
6/88 8,861 9,331
6/89 10,682 11,065
6/90 12,444 12,480
6/91 13,364 13,414
6/92 15,156 15,072
6/93 17,222 16,815
6/94 17,464 17,365
6/95 22,017 21,019
6/96 27,741 26,176
6/97 37,367 34,264
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (2/18/92)
------ ------ ---------
<S> <C> <C> <C>
Class A 30.39% 17.55% 16.43%
Class A* 24.52% 16.46% 15.43%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 CLASS A* CLASS A
--------------------- ------- -------- -------
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 9,992 9,625 10,079
6/93 11,354 10,721 11,226
6/94 11,514 11,037 11,557
6/95 14,515 13,301 13,961
6/96 18,289 16,569 17,353
6/97 24,635 21,602 22,625
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (1/14/94)
------ ------ ---------
<S> <C> <C> <C>
Class B 29.48% NA 19.49%
Class B** 25.48% N/A 18.92%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 CLASS B** CLASS B
--------------------- ------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $ 1,000 $10,000
6/94 9,344 9,663 9,663
6/95 11,779 11,587 11,587
6/96 14,842 14,300 14,300
6/97 19,992 18,100 18,540
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Income Equity Fund is measured against the S&P 500 Index,
an unmanaged index generally representative of the performance of large
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B Shares.
8
<PAGE> 11
The One Group Equity Index Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
The One Group Equity Index Fund Fiduciary share class posted a total return of
34.30% for the year ended June 30, 1997. (For information on other share classes
and a performance comparison to the index, please turn to page 10.)
As it is designed to do, the Fund offered a return that nearly matched that of
the S&P 500 Index, the group of stocks the Fund seeks to track with little or no
excess risk. The S&P 500 Index returned 34.70% for the period. The slight
difference in returns between the Fund and the Index is due to fees and
transaction costs charged to the Fund and not to the Index.
Strong corporate earnings growth, a strong economy and relatively low interest
rates led to attractive stock market returns during the 12-month period. By
aggressively investing the Fund's cash flows and monitoring changes in the S&P
500 Index, we were able to achieve the Fund's attractive total return.
Among the major market sectors, banking, financial and technology offered the
strongest returns during the fiscal year. A favorable economic backdrop helped
the performance of banking and financial stocks, while strong earnings growth
fueled the charge among technology stocks.
The weakest-performing sectors included the telephone and electric utilities,
which were plagued by deregulation and competitive issues. In addition, the
consumer cyclicals sector offered disappointing performance during the fiscal
year.
NOTABLE STOCK HOLDINGS
Outstanding performance from certain stocks also contributed to the Fund's
return. For example, Dell Computer Corporation was up 362%, Advanced Micro
Devices was up 163%, and Great Western Financial was up 133%. There also were
some disappointments during the year, including Silicon Graphics, which was down
38%, Echo Bay Mining, down 46%, and Novell Inc., down 50%.
OUTLOOK
Returns over the last three years have been abnormally high for the S&P 500
Index. As we look toward next year, we believe that returns on
large-capitalization stocks may revert to more "normal" levels--in the 8% to 12%
range. Trailing price/earnings multiples are currently more than 20 and are
unlikely to rise. However, earnings growth from 6% to 10% along with a modest
dividend return should provide the potential to generate respectable total
returns.
/s/ MICHAEL D. WEINER
Michael D. Weiner
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
9
<PAGE> 12
The One Group Equity Index Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (7/2/91)
------ ------ ---------
<S> <C> <C> <C>
Fiduciary 34.30% 19.25% 18.03%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ----------------------------
(FISCAL YEAR COVERED) S&P 500 FIDUCIARY
--------------------- ------- ---------
<S> <C> <C>
7/91 $10,000 $10,000
6/92 10,836 11,211
6/93 12,313 12,673
6/94 12,486 12,753
6/95 15,741 16,043
6/96 19,834 20,129
6/97 26,717 27,033
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (2/18/92)
------ ------ ---------
<S> <C> <C> <C>
Class A 33.94% 18.98% 17.67%
Class A* 27.87% 17.89% 16.66%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 CLASS A* CLASS A
--------------------- ------- -------- -------
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 9,992 9,595 9,992
6/93 11,354 10,818 11,354
6/94 11,514 10,879 11,514
6/95 14,515 13,644 14,515
6/96 18,289 17,075 18,289
6/97 24,635 22,869 23,953
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year (1/14/94)
------ ---------
<S> <C> <C>
Class B 32.93% 21.11%
Class B** 28.93% 20.56%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 500 CLASS B** CLASS B
--------------------- ------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,344 9,443 9,443
6/95 11,779 11,765 11,765
6/96 14,842 14,595 14,595
6/97 19,992 19,100 19,500
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Equity Index Fund is measured against the S&P 500 Index,
an unmanaged index generally representative of the performance of large
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B Shares.
10
<PAGE> 13
The One Group Value Growth Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
For the year ended June 30, 1997, The One Group Value Growth Fund Fiduciary
share class had a total return of 31.97%. (For information on other share
classes and performance comparisons to indexes, please see page 12.)
Economic growth and strong corporate earnings once again set the stage for
outstanding returns from large-company growth stocks. Smaller-company stocks and
value-oriented stocks continued to perform well, but not nearly as well as their
large-company growth counterparts.
Rather than emphasizing certain market sectors or trying to time the market's
moves, we research, evaluate and select stocks on an individual basis to build a
diversified portfolio. As a result, we don't consciously overweight a single
sector or a single style of stock. Instead, we invest in stocks from the four
major equity styles: large-capitalization growth, large-capitalization value,
medium-capitalization growth and medium-capitalization value. We look for those
that offer the best return potential relative to their level of risk.
This bottom-up, stock-by-stock selection process gave the Fund exposure to many
different industries and was the primary influence, along with rising markets,
on the Fund's strong one-year return. The portfolio remained fully invested
during the year, as we purchased stocks with an appealing combination of good
price and improving fundamentals.
NOTABLE STOCK HOLDINGS
In general, the Fund's holdings in semiconductor, enterprise software, food
retailing and major pharmaceutical companies contributed nicely to returns. In
particular, solid performance from Intel, up 93%; Microsoft, up 114%; Eli Lily,
up 93%; Smith Foods, up 72%; Revlon, up 67%; and SunAmerica, up 60%, helped
boost the Fund's return. These stocks all exhibited a combination of good value
and strong or improving fundamentals.
The Fund's return was affected somewhat from investments in Aames Financial,
which was down 23% for the year due to credit quality issues, and Texas
Utilities, which was down 19% due to the changing regulatory environment within
this industry. In addition, First Brands, down 15%, and HBOC, up 2%, suffered
poor performance as their fundamentals fell short of expectations. Fortunately,
the Fund's broad diversification lessened the impact of these poor performers.
As of June 30, 1997, the Fund's top 10 holdings included General Electric, at
2.7% of assets; Microsoft, 2.5%; Merck, 2.2%; Philip Morris, 2.0%; Intel, 2.0%;
Exxon, 1.9%; Wal-Mart, 1.8%; Bristol-Myers Squibb, 1.7%; IBM, 1.6%; and SBC
Comm., Inc., 1.4%.
OUTLOOK
High valuations that are evident today are vulnerable to changes in the
inflation forecast and shifts in Federal Reserve policy. Evidence of a stronger
economy will be good news for earnings, but it may persuade the Federal Reserve
to be more aggressive in raising interest rates. If this occurs, price/earnings
ratios would shrink and the market--along with this fund--could suffer
performance setbacks. These factors haven't warranted a change in our investment
strategy yet, but they are conditions we will monitor closely. In the meantime,
we will continue to build the portfolio stock by stock, industry by industry, in
order to add value throughout the upcoming year.
/s/ MICHAEL D. WEINER
Michael D. Weiner
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
11
<PAGE> 14
The One Group Value Growth Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (12/29/89)
------ ------ ----------
<S> <C> <C> <C>
Fiduciary 31.97% 17.24% 16.10%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 1500 FIDUCIARY
--------------------- -------- ---------
<S> <C> <C>
12/89 $10,000 $10,000
6/90 10,309 10,657
6/91 11,072 11,631
6/92 12,557 13,847
6/93 14,268 16,554
6/94 14,469 16,496
6/95 18,164 19,198
6/96 22,783 23,242
6/97 30,290 30,673
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (12/29/89)
------ ------ ----------
<S> <C> <C> <C>
Class A 31.53% 17.15% 16.04%
Class A* 25.61% 16.06% 15.33%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 1500 CLASS A* CLASS A
--------------------- -------- -------- -------
<S> <C> <C> <C>
12/89 $10,000 $ 9,550 $10,000
6/90 10,309 10,178 10,657
6/91 11,072 11,107 11,631
6/92 12,557 13,224 13,847
6/93 14,268 15,809 16,554
6/94 14,469 15,754 16,496
6/95 18,164 18,334 19,198
6/96 22,783 22,178 23,225
6/97 30,290 29,171 30,548
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (9/9/94)
------ ------ ---------
<S> <C> <C> <C>
Class B 30.52% NA 20.65%
Class B** 26.52% NA 19.89%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
MEASUREMENT PERIOD ---------------------------
(FISCAL YEAR COVERED) S&P 1500 CLASS B** CLASS B
--------------------- -------- --------- -------
<S> <C> <C> <C>
9/94 $10,000 $10,000 $10,000
6/95 11,969 10,806 10,806
6/96 15,013 12,981 12,981
6/97 19,959 16,642 16,942
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The above-quoted performance data includes the performance of the Paragon Value
Equity Income Fund for the period prior to the commencement of operations of The
One Group Value Growth Fund on March 26, 1996. Performance for the Fiduciary
Shares is based on Class A Share performance adjusted to reflect the absence of
sales charges.
The performance of the Value Growth Fund is measured against the S&P 1500 Index,
an unmanaged index generally representative of the performance of large and
small companies in the US stock market. Investors are unable to purchase the
index directly, although they can invest in the underlying securities. The
performance of the index does not reflect the deduction of expenses associated
with a mutual fund, such as investment management. By contrast, the performance
of the fund reflects the deduction of these value-added services as well as the
deduction of sales charges on Class A Shares and applicable contingent deferred
sales charges on Class B Shares.
The S&P 1500 Index for all classes consists of the average monthly returns of
the S&P 500 Index from December 1989 through June 1995. Thereafter, the data are
from the S&P 1500 Index which corresponds with the initiation of the S&P 1500
Index on June 30, 1995.
12
<PAGE> 15
The One Group Large Company Value Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
The One Group Large Company Value Fund Fiduciary share class had a total return
of 27.10% for the year ended June 30, 1997. (For information on other share
classes and performance comparisons to indexes, please see page 14.)
The Fund remained broadly diversified among 15 industry sectors during the year.
Our strategy involved implementing traditional value-investing techniques,
including focusing on stocks with below-average price-to-earnings ratios and
price-to-book value ratios. We employed this approach within the context of our
basic research discipline--investing in attractively-priced stocks with
improving fundamental qualities.
We increased the Fund's weighting in three key sectors during the year--energy,
banks and financial services. This strategy allowed the Fund to take advantage
of valuation opportunities in these sectors. At year end, stocks in these three
sectors comprised nearly 50% of the Fund's value.
Deteriorating fundamentals forced us to lower the Fund's position in industrial
commodities. In addition, we reduced exposure to electric utilities, despite the
attractive dividend yields they offered. Increased competition and a
deteriorating regulatory environment created problems for companies in this
industry.
NOTABLE STOCK HOLDINGS
A number of the Fund's stock holdings offered strong performance due to
acquisition activities. These included Conrail, Morgan Stanley and Great Western
Financial. IBM also posted strong returns, as its management continues to
deliver on its plans for restructuring and refocusing the company. In addition,
three energy services companies turned in particularly strong performance (and
were subsequently sold) due to strong demand for energy-related services and
attractive stock valuations. These included Halliburton, Rowan and Baker Hughes.
In addition to electric utilities stocks, several holdings in the technology
area, such as Silicon Graphics and Novell, were market laggards as competition
impeded earnings progress.
Half of the Fund's top 10 holdings changed during the year. Those that held
their spots from the previous year included Atlantic Richfield, at 3.3% of Fund
assets on June 30, 1997; Exxon, 4.3%; IBM, 4.3%; General Motors, 2.2%; and RJR
Nabisco, 2.3%. The new members of the top 10, as of June 30, 1997, were Royal
Dutch Petroleum, 3.5%; Travelers Group, 2.8%; Mobil Oil, 2.6%; BankAmerica,
2.2%; and NationsBank, 2.2%.
OUTLOOK
We currently expect economic growth to continue its moderate pace throughout
1997. As such, corporate profits and stock prices should continue to grow. The
upcoming months are likely to bring positive, but moderating, performance for
the stock market and the Fund. Returns should begin to trend toward their long-
term average of 8% to 12% a year, compared to the unusually high results that
have been experienced over the last few years.
/s/ EDMUND M. COWART, CFA
Edmund M. Cowart, CFA
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
13
<PAGE> 16
The One Group Large Company Value Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (3/1/91)
------ ------ ---------
<S> <C> <C> <C>
Fiduciary 27.10% 13.90% 13.63%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD S&P/BARRA 500
(FISCAL YEAR COVERED) VALUE FIDUCIARY
--------------------- ------------- ---------
<S> <C> <C>
3/91 $10,000 $10,000
6/91 10,035 10,148
6/92 11,405 11,721
6/93 13,514 12,511
6/94 13,932 12,709
6/95 16,903 15,685
6/96 21,094 17,678
6/97 27,610 22,470
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (2/18/92)
------ ------ ---------
<S> <C> <C> <C>
Class A 26.90% 13.72% 12.70%
Class A* 21.15% 12.68% 11.73%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD S&P/BARRA 500
(FISCAL YEAR COVERED) VALUE CLASS A* CLASS A
--------------------- ------------- -------- -------
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 10,267 9,539 9,988
6/93 12,165 10,173 10,652
6/94 12,542 10,370 10,862
6/95 15,217 12,716 13,321
6/96 18,990 14,292 14,973
6/97 24,856 18,137 19,000
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
Since
Inception
1 Year 5 Year (1/14/94)
------ ------ ---------
<S> <C> <C> <C>
Class B 25.86% NA 15.83%
Class B** 21.86% NA 15.23%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD S&P/BARRA 500
(FISCAL YEAR COVERED) VALUE CLASS B** CLASS B
--------------------- ------------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,643 9,652 9,652
6/95 11,317 11,802 11,802
6/96 14,123 13,213 13,213
6/97 18,485 16,330 16,630
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Large Company Value Fund is measured against the
S&P/BARRA 500 Value Index, an unmanaged index representing the performance of
the lowest price to book securities in the S&P 500. Investors are unable to
purchase the index directly, although they can invest in the underlying
securities. The performance of the index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management. By
contrast, the performance of the fund reflects the deduction of these
value-added services as well as the deduction of sales charges on Class A Shares
and applicable contingent deferred sales charges on Class B Shares.
14
<PAGE> 17
The One Group Disciplined Value Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
The One Group Disciplined Value Fund Fiduciary share class had a total return of
20.56% for the year ended June 30, 1997. (For information on other share classes
and performance comparisons to indexes, please see page 16.)
Our goal for the Fund over the last year was to maintain a diversified portfolio
with exposure to a variety of economic sectors. Throughout the period, the stock
market was very concerned about the direction of interest rates. So, in order to
avoid some of the price volatility associated with potential changes in interest
rates, we broadly diversified the Fund's portfolio. Within this framework, we
emphasized individual stock selection and continued to rebalance the portfolio
in order to improve its structure and upgrade its holdings as market conditions
changed.
The Fund's largest sector weightings included electric utilities, banks and
industrial commodities. Securities from these sectors represented more than
one-third of the Fund's holdings. Within the electric utilities sector, many
problems surfaced due to regulatory issues and increased competition. As a
result, the Fund's investments in electric utilities stocks held back the Fund's
performance earlier in the year. After we reduced the Fund's investment in this
sector, however, overall portfolio performance improved.
The greatest positive influence on portfolio performance came from the energy
sector, where we took advantage of favorable price movements. We were able to
purchase energy stocks at attractive prices and then sell them when their prices
had appreciated to our targeted levels. The largest negative influence came from
the capital equipment sector, where some individual stock holdings showed poor
performance.
NOTABLE STOCK HOLDINGS
Outstanding performance from several individual stocks boosted the Fund's
return. These exemplary stocks included Teradyne, which increased 119% in value
due to an upturn from a cyclical low in the semiconductor capital equipment
industry; Smith Foods, which increased 85% on a takeover by Fred Meyer
Corporation; Lattice Semiconductor, which was up more than 55% due to continued
strong growth in programmable logic devices; and Edison International, which
increased 40% due to decreasing regulatory concerns.
The Fund's return suffered somewhat from the poor performance of certain stocks:
Nellcor declined more than 30% due to management's difficulties in implementing
a new MIS (management information system); Illinova declined more than 30% due
to heightened regulatory concerns in the electric utilities industry; and Octel
Communications lost 20% due to pricing pressures.
Profit-taking was the underlying motivation for changes in the Fund's top 10
holdings. For example, Seagate Technologies, Washington Post and Bear Stearns
were all trimmed or eliminated as the stocks reached their price targets. We
then established new holdings in similar industries at more attractive valuation
levels. The Fund's top 10 holdings on June 30, 1997, included Regions Financial
Corp., at 1.8% of Fund assets; SouthTrust Corp., 1.8%; CMS Energy Corp., 1.5%;
Provident Companies Inc., 1.5%; McKesson Corp., 1.5%; Nextel Communications,
1.3%; Molex, Inc., 1.3%; Summit Bancorp, 1.2%; Teradyne, Inc., 1.3%; and PMI
Group Inc., 1.2%.
OUTLOOK
Looking ahead, strong economic growth may force the Federal Reserve to tighten
monetary policy. As we've seen in the past, higher interest rates can create
severe volatility in the stock market. We will maintain our current strategy of
broad sector diversification and individual stock selection to help protect the
Fund from a possible interest rate hike. Within each sector, we will continue to
look for the best values--those with low price/earnings and price/book
ratios--among medium-capitalization stocks.
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
15
<PAGE> 18
The One Group Disciplined Value Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (3/2/89)
------ ------ ---------
<S> <C> <C> <C>
Fiduciary 20.56% 14.70 12.51%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD MIDCAP
(FISCAL YEAR COVERED) 400 VALUE FIDUCIARY
--------------------- --------- ---------
<S> <C> <C>
3/89 $10,000 $10,000
6/89 10,883 10,989
6/90 12,677 11,372
6/91 13,666 11,572
6/92 16,450 13,451
6/93 20,284 15,278
6/94 20,388 15,895
6/95 24,523 18,443
6/96 30,137 22,150
6/97 37,343 26,704
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
------ ------ ---------
<S> <C> <C> <C>
Class A 20.21% 14.45% 13.65%
Class A* 14.82% 13.40% 12.68%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD MIDCAP
(FISCAL YEAR COVERED) 400 VALUE CLASS A* CLASS A
--------------------- --------- -------- -------
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 9,732 9,666 10,121
6/93 11,999 10,948 11,464
6/94 12,061 11,418 11,956
6/95 14,507 13,179 13,801
6/96 17,828 15,788 16,534
6/97 22,091 18,977 19,875
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (1/14/94)
------ ------ ---------
<S> <C> <C> <C>
Class B 19.19% NA 13.45%
Class B** 15.19% NA 12.81%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD MIDCAP
(FISCAL YEAR COVERED) 400 VALUE CLASS B** CLASS B
--------------------- --------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,467 9,500 9,500
6/95 11,387 10,918 10,918
6/96 13,994 12,985 12,985
6/97 17,340 15,176 15,476
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Disciplined Value Fund is measured against the S&P/BARRA
Midcap 400 Value Index, an unmanaged index representing the performance of the
lowest price to book securities in the S&P Midcap 400 Index. Investors are
unable to purchase the index directly, although they can invest in the
underlying securities. The performance of the index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B Shares.
The S&P/BARRA Midcap 400 Value Index consists of the average monthly returns of
the S&P 500 Index for periods prior to June 1991. Thereafter, the data are from
the S&P/BARRA Midcap 400 Value Index which corresponds with the initiation of
the S&P/BARRA Midcap 400 Value Index on June 30, 1991.
16
<PAGE> 19
The One Group Large Company Growth Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
The One Group Large Company Growth Fund Fiduciary share class posted a total
return of 33.11% for the year ended June 30, 1997. (For information on other
share classes and performance comparisons to indexes, please see page 18.)
A strong economy combined with only a modest increase in interest rates created
an exceptional environment for growth stocks. Strong earnings and good prospects
for future earnings also contributed to excellent growth stock performance. The
market particularly favored a narrow group of the largest growth companies,
primarily due to their earnings reliability and their stock liquidity.
The market has shown no sympathy for companies exhibiting earnings shortfalls
and management shortcomings. As such, our main strategy for the year was to keep
the Fund fully invested in high-quality growth companies with strong management
teams and superior product positioning.
NOTABLE STOCK HOLDINGS
Over the past 12 months a number of the Fund's stock holdings provided
exceptional performance, with Intel, IBM, Lucent Technologies, Microsoft, Texas
Instruments, Pfizer and U.S. Bancorp all up more than 70%. Stocks that were up
more than 50% included Abbott Laboratories, Eli Lilly, Medtronic, Merck,
Schering Plough, Elan, Colgate Palmolive, Heinz, Hershey Foods, Proctor &
Gamble, Illinois Tool Works, Gillette, Walgreen's, AIG and Marsh & McClellan.
On the other hand, there were a few disappointments in the restaurant, utility
and engineering and construction industries. For example, McDonald's was flat,
American Telephone was down 40% and Fluor was down 15%.
The Fund's holdings, including the top 10, changed throughout the year. This was
due to two main factors: our strategy of increasing the Fund's growth profile
and price appreciation. The Fund's assets grew by 60% over the year due to
market appreciation, cash inflows and other contributions.
At year end, the Fund's top 10 holdings included General Electric at 5.1% of
Fund assets; Microsoft, 4.3%; Coca-Cola, 3.7%; Merck & Co., 3.5%; Philip Morris,
3.2%; Intel, 3.2%; Proctor & Gamble, 2.5%; Wal-Mart, 2.2%; Bristol-Myers Squibb,
2.1%; and Pfizer, 2.0%.
OUTLOOK
With high valuations and high expectations in the large growth stock arena, we
will continue to be especially vigilant regarding the potential for earnings
disappointments. We also will work to reduce exposure to fully valued companies
and reinvest those proceeds in stocks that offer strong earnings growth and
reasonable valuations.
Over the past three years, returns from large-company growth stocks have been
almost double their historic norms. It would be unusual for this trend to
continue and, therefore, it seems prudent to lower our expectations somewhat for
the next year.
/s/ R. LYNN YTURRI
R. Lynn Yturri
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
17
<PAGE> 20
The One Group Large Company Growth Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/28/92)
------ ------ ---------
<S> <C> <C> <C>
Fiduciary 33.11% 18.57% 17.11%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD 500
(FISCAL YEAR COVERED) GROWTH FIDUCIARY
--------------------- --------- ---------
<S> <C> <C>
2/92 $10,000 $10,000
6/92 9,743 9,920
6/93 10,550 11,301
6/94 10,522 12,210
6/95 13,755 14,878
6/96 17,505 17,461
6/97 24,215 23,243
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year (2/22/94)
------ ---------
<S> <C> <C>
Class A 32.57% 20.39%
Class A* 26.57% 18.74%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD 500
(FISCAL YEAR COVERED) GROWTH CLASS A* CLASS A
--------------------- --------- -------- -------
<S> <C> <C> <C>
2/94 $10,000 $ 9,550 $10,000
6/94 9,530 9,453 9,898
6/95 12,458 11,486 12,028
6/96 15,854 13,420 14,054
6/97 21,931 17,790 18,631
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
------ ---------
<S> <C> <C>
Class B 31.74% 19.23%
Class B** 27.74% 18.67%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD 500
(FISCAL YEAR COVERED) GROWTH CLASS B** CLASS B
--------------------- --------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,539 9,934 9,934
6/95 12,235 11,831 11,831
6/96 15,570 13,952 13,952
6/97 21,539 18,000 18,381
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Large Company Growth Fund is measured against the
S&P/BARRA 500 Growth Index, an unmanaged index representing the performance of
the highest price to book securities in the S&P 500. Investors are unable to
purchase the index directly, although they can invest in the underlying
securities. The performance of the index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management. By
contrast, the performance of the fund reflects the deduction of these
value-added services as well as the deduction of sales charges on Class A Shares
and applicable contingent deferred sales charges on Class B Shares.
18
<PAGE> 21
The One Group Growth Opportunities Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
The One Group Growth Opportunities Fund Fiduciary share class posted a total
return of 22.75% for the year ended June 30, 1997. (For information on other
share classes and performance comparisons to the indexes, please see page 20.)
Medium-capitalization growth stocks continued to benefit from a strong economy,
low inflation, solid corporate earnings, relatively low interest rates and
worldwide political stability.
The Fund's strong performance primarily can be attributed to rising markets and
good stock selection. We evaluate stocks on an individual basis, searching for
those with appealing fundamentals. We do not select stocks based on general
economic or market trends. As a result, we were able to uncover companies in
high-growth industries that offer good business models and strategies and
competitive advantages.
The Fund continued to favor stocks in the technology sector, which offered
strong performance due to a growth rate that surpassed that of the overall
economy. We also emphasized stocks from the communications technology and
financial industries, which have offered solid earnings growth at compelling
valuations.
NOTABLE STOCK HOLDINGS
The stocks of three companies showed particularly strong performance: Dell
Computer Corporation, up 360%; Advanced Fiber, up 112%; and Charles Schwab &
Co., up 64%. Each of these companies is in a high-growth area of its respective
sector, and management has successfully executed each company's strategy. Each
has exceeded earnings projections, and earnings continue to be revised upward.
On the other hand, poor performance from Medaphis, a health services company
that was down significantly for the 12-month period, hurt the Fund's return. The
company suffered from major earnings disappointments and downward revisions
after purchasing too many firms and losing control of its acquisition
strategies.
Once a stock reaches what we believe to be its full value, we usually sell it.
Also, we may increase our position in certain issues during market sell-offs. As
a result, price changes on the Fund's stocks cause the portfolio's top 10
holdings to change from time to time. On June 30, 1997, the top 10 holdings
included Progressive Corp., at 2.4% of Fund assets; Coca Cola Enterprises, 2.3%;
Franklin Resources, 2.1%; AES Corp., 2.0%; Advanced Fiber Corp, 1.8%, Just for
Feet, 1.7%; 3 Com Corp., 1.7%; AFLAC Inc., 1.6%; BMC Software Inc., 1.5%; and
Oxford Health, 1.5%.
OUTLOOK
In the months ahead, the technology sector should remain the "backbone" of the
Fund. Furthermore, we expect to see a shift in market sentiment, as small- and
mid-capitalization stocks gain greater favor with investors. We believe that the
smaller market indexes may in the coming months start outperforming the larger
indexes--a situation that hasn't occurred in more than three years. Given this
scenario, the Fund has the potential to continue providing an attractive total
return.
/s/ ASHI S. PARIKH
Ashi S. Parikh
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
19
<PAGE> 22
The One Group Growth Opportunities Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (3/2/89)
------ ------ ---------
<S> <C> <C> <C>
Fiduciary 22.75% 17.29% 16.89%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD MIDCAP
(FISCAL YEAR COVERED) 400 VALUE FIDUCIARY
--------------------- --------- ---------
<S> <C> <C>
3/89 $10,000 $10,000
6/89 10,604 10,822
6/90 10,720 13,077
6/91 10,635 14,364
6/92 12,290 16,543
6/93 14,903 20,076
6/94 14,620 20,044
6/95 18,183 24,002
6/96 21,703 29,915
6/97 26,785 36,721
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
------ ------ ---------
<S> <C> <C> <C>
Class A 22.52% 17.12% 13.24%
Class A* 17.03% 16.05% 12.28%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD MIDCAP
(FISCAL YEAR COVERED) 400 VALUE CLASS A* CLASS A
--------------------- --------- -------- -------
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 8,904 8,448 8,847
6/93 10,798 10,282 10,766
6/94 10,592 10,229 10,710
6/95 13,173 12,224 12,799
6/96 15,724 15,196 15,912
6/97 19,406 18,618 19,495
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (1/14/94)
------ ------ ---------
<S> <C> <C> <C>
Class B 21.73% NA 14.96%
Class B** 17.73% NA 14.34%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
S&P/BARRA
MEASUREMENT PERIOD MIDCAP
(FISCAL YEAR COVERED) 400 VALUE CLASS B** CLASS B
--------------------- --------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 8,611 9,093 9,093
6/95 10,709 10,772 10,772
6/96 12,783 13,307 13,307
6/97 15,776 15,898 16,198
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Growth Opportunities Fund is measured against the
S&P/BARRA Midcap 400 Growth Index, an unmanaged index representing the
performance of the highest price to book securities in the S&P Midcap 400 Index.
Investors are unable to purchase the index directly, although they can invest in
the underlying securities. The performance of the index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B Shares.
The S&P/BARRA Midcap 400 Growth Index for the Fiduciary Class Shares consists of
the average monthly returns of the Russell 2000 Index for periods prior to June,
1991. Thereafter, the data are from the S&P/BARRA Midcap 400 Growth Index which
corresponds with the initiation of the S&P/BARRA Midcap 400 Growth Index on June
30, 1991.
20
<PAGE> 23
The One Group Gulf South Growth Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
For the year ended June 30, 1997, The One Group Gulf South Growth Fund Fiduciary
share class posted a total return of 13.44%. (For information on other share
classes and performance comparisons to indexes, please see page 22.)
Compared to large-capitalization growth stocks, smaller-capitalization growth
stocks remained out of favor with investors over the last year.
Large-capitalization stocks, due to their liquidity and earnings predictability,
have outperformed their smaller-capitalization brethren for the third year in a
row.
Our primary strategies during the year were to maintain an average market
capitalization of $500 million or less and enhance the portfolio's
diversification. The Fund's assets were divided among 17 sectors that span a
broad range of industries. The only sector that we significantly emphasized was
energy. In particular, our own fundamental research and increased drilling
activity in the Gulf of Mexico led us to many attractively priced oil stocks.
Although the Fund's sector weights changed little during the year, the
individual industries and stocks comprising those industries did change. We
reduced many of the Fund's positions through the normal selling of companies
that failed to perform to expectations. We also reduced some holdings due to
profit-taking. Furthermore, we scaled back each of the top 10 holdings so that
no holding represented more than 2% of total Fund assets.
NOTABLE STOCK HOLDINGS
Of the top 10 holdings on June 30, 1997, four were financial stocks--Triad
Guaranty at 1.7% of assets; CCB Financial, 1.5%; First Financial Holdings, 1.3%;
and Protective Life, 1.3%. The remaining stocks in the top 10 included DeKalb
Genetics at 1.6% of assets; Stewart Enterprises, 1.5%; Tech Data, 1.5%;
Omnicare, 1.3%; Maverick Tube Corp., 1.2%; and Newpark Resources, Inc., 1.2%.
The acceleration of activity in the Gulf of Mexico's oil patch led to strong
performance for several of the Fund's oil service companies. For example,
Maverick Tube was up more than 200%; Trico Marine and Patterson Energy were up
more than 100%; Pride Petroleum was up 50%; and Stone Energy was up 40%.
The Fund suffered a significant loss from Medaphis, a health services company
that experienced severe losses and declined 71% during the year. In the retail
sector, Garden Ridge, down 68%, was a major disappointment as earnings did not
meet expectations.
OUTLOOK
Looking ahead, it appears as though small-capitalization stocks may be on the
verge of regaining investor favor. Although the market continues to demand
liquidity, which is provided by large-capitalization stocks, the valuations in
small-company stocks are becoming more compelling on a price/earnings to growth
relationship.
/s/ DONALD E. ALLRED
Donald E. Allred
Fund Manager
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
21
<PAGE> 24
The One Group Gulf South Growth Fund
PORTFOLIO PERFORMANCE REVIEW, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (7/1/91)
------ ------ ---------
<S> <C> <C> <C>
Fiduciary 13.44% 15.06% 16.06%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) S&P 600 FIDUCIARY
--------------------- ------- ---------
<S> <C> <C>
6/91 $10,000 $10,000
6/92 11,710 12,122
6/93 15,046 15,309
6/94 15,326 15,874
6/95 18,447 17,772
6/96 23,246 21,551
6/97 28,287 24,448
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (7/1/91)
------ ------ ---------
<S> <C> <C> <C>
Class A 13.52% 14.99% 16.00%
Class A* 8.38% 13.93% 15.11%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) S&P 600 CLASS A* CLASS A
--------------------- ------- -------- -------
<S> <C> <C> <C>
6/91 $10,000 $ 9,550 $10,000
6/92 11,710 11,577 12,122
6/93 15,046 14,620 15,309
6/94 15,326 15,159 15,877
6/95 18,447 16,972 17,772
6/96 23,246 20,502 21,468
6/97 28,287 23,275 24,371
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (9/12/94)
------ ------ ---------
<S> <C> <C> <C>
Class B 12.74% NA 13.68%
Class B** 8.74% NA 12.83%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) S&P 600 CLASS B** CLASS B
--------------------- ------- --------- -------
<S> <C> <C> <C>
12/94 $10,000 $10,000 $10,000
6/95 11,470 10,594 10,594
6/96 14,454 12,702 12,702
6/97 17,589 14,020 14,320
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The above-quoted performance data includes the performance of the Paragon Gulf
South Growth Fund for the period prior to the commencement of operations of The
One Group Gulf South Growth Fund on March 26, 1996. Performance for the
Fiduciary Shares is based on Class A Share performance adjusted to reflect the
absence of sales charges.
The performance of the Gulf South Growth Fund is measured against the S&P 600
Index, an unmanaged index generally representative of the performance of small
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B Shares.
22
<PAGE> 25
The One Group International Equity Index Fund
PORTFOLIO PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
PERFORMANCE AND STRATEGY
For the year ended June 30, 1997, The One Group International Equity Index Fund
Fiduciary share class provided a total return of 14.64%. (For information on
other share classes and a performance comparison to the index, please see page
24.)
As it is designed to do, the Fund's performance closely matched that of the
Morgan Stanley Capital International Europe, Australia, Far East/Gross Domestic
Product (EAFE/GDP) Index. For the one-year period, the EAFE/GDP Index provided a
return of 14.57%.
We were able to slightly outperform the EAFE/GDP Index despite the fact that the
Fund has fees and expenses and the index does not. What particularly helped the
Fund overcome these factors was the Fund's investment in the emerging markets,
including Mexico, Brazil, Turkey and Thailand.
The Fund invests in a portfolio that consists of 90% EAFE/GDP and 10% emerging
markets. (The Fund owned 600 stocks in the developed international markets and
270 stocks in the emerging markets.) We invest the Fund's assets according to
how the 20 developed countries that comprise the EAFE/GDP are weighted in the
Index, and we equally weight the 13 emerging market countries. During the last
year, the emerging market component outperformed the EAFE/GDP Index, returning
17.27%.
While the Fund's one-year return was attractive, it would have been greater but
for the strength of the U.S. dollar during the period. In other words,
purchasing a U.S. dollar in most foreign countries required a greater amount of
local currency at the end of the fiscal year than it did at the beginning. As a
result, the Fund's foreign-denominated investments were worth less when
translated to U.S. dollars.
NOTABLE COUNTRY RETURNS
The Japanese stock market, where we invested the largest percentage of Fund
assets--between 23% and 29%--was down 9% for the year. In spite of this poor
performance, the Fund still provided a good return, as strong results from many
other countries helped offset the decline in the Japanese market.
The stock markets in several developed countries offered excellent returns
during the period. For example, in Finland, the market was up 54%; Spain, up
49%; The Netherlands, up 38%; Sweden, up 38%; and the United Kingdom, up 35%.
Emerging market countries offering outstanding performance included Brazil,
whose stock market was up 72%; Turkey, up 60%; Portugal, up 48%; Greece, up 47%;
and Mexico, up 31%.
OUTLOOK
Looking ahead, we believe that international economic activity will likely
remain strong. Stock market performance in Japan should improve, European
markets generally appear attractive, and many elements of the emerging markets
appear favorable.
/s/ NORMAN MELTZ
Norman Meltz
Independence International Associates Inc.
Fund Sub-Advisor
/s/ RICHARD R. JANDRAIN III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
23
<PAGE> 26
The One Group International Equity Index Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year (10/28/92)
------ ----------
<S> <C> <C>
Fiduciary 14.64% 13.57%
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD MORGAN STANLEY
(FISCAL YEAR COVERED) EAFE/GDP FIDUCIARY
--------------------- -------------- ---------
<S> <C> <C>
10/92 $10,000 $10,000
6/93 12,292 11,812
6/94 14,582 13,636
6/95 15,141 14,209
6/96 17,054 15,803
6/97 19,539 18,116
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year (4/23/93)
------ ---------
<S> <C> <C>
Class A 14.31% 10.43%
Class A* 9.18% 9.18%
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD MORGAN STANLEY
(FISCAL YEAR COVERED) EAFE/GDP CLASS A* CLASS A
--------------------- -------------- -------- -------
<S> <C> <C> <C>
4/93 $10,000 $ 9,550 $10,000
6/93 9,989 9,510 9,958
6/94 11,850 10,953 11,469
6/95 12,304 11,374 11,913
6/96 13,859 12,641 13,248
6/97 15,878 14,448 15,144
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
------ ---------
<S> <C> <C>
Class B 13.37% 8.54%
Class B** 9.37% 7.84%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
---------------------------
MEASUREMENT PERIOD MORGAN STANLEY
(FISCAL YEAR COVERED) EAFE/GDP CLASS B** CLASS B
--------------------- -------------- --------- -------
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 10,046 10,323 10,323
6/95 10,431 10,650 10,650
6/96 11,750 11,712 11,712
6/97 13,461 12,978 13,278
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
International investing involves increased risk and volatility.
The performance of the International Equity Index Fund is measured against the
Morgan Stanley EAFE/GDP Index, an unmanaged index generally representative of
the performance of international stock markets. Investors are unable to purchase
the index directly, although they can invest in the underlying securities. The
performance of the index does not reflect the deduction of expenses associated
with a mutual fund, such as investment management. By contrast, the performance
of the fund reflects the deduction of these value-added services as well as the
deduction of sales charges on Class A Shares and applicable contingent deferred
sales charges on Class B Shares.
24
<PAGE> 27
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<S> <C> <C>
ASSET BACKED SECURITIES (2.2%):
140 Advanta Credit Card Master Trust,
5.95%, 8/31/99..................... $ 140
513 Advanta Mortgage Loan Trust, Series
1994-3, Class A2, 7.60%, 7/25/10... 516
250 Case Equipment Loan Trust, Series
1996-B, Class A3, 6.65%, 9/15/03... 251
480 Green Tree Financial Corp., Series
1996-3, Class A3, 6.70%, 5/15/27... 481
98 Honda Auto Receivables Grantor Trust,
Series 1994-A, 4.80%, 8/15/99...... 98
106 KeyCorp Auto Grantor Trust, Series
1995-A A, 5.80%, 7/15/00........... 106
500 Nationsbank Auto Owner Trust, Series
1996-A A3, 6.38%, 7/15/00.......... 504
325 Olympic Automobile Receivables Trust,
6.05%, 8/15/02..................... 322
1,025 Olympic Automobile Receivables Trust,
Series 1996-B, Class A4, 6.70%,
3/15/02............................ 1,033
259 The Money Store Home Equity Trust,
Series 1994-B, Class A2, 6.80%,
2/15/13............................ 259
102 Union Federal Savings Bank Trust,
Series 1994 A A, 5.08%, 5/15/00.... 101
--------
Total Asset Backed Securities 3,811
--------
COMMON STOCKS (54.1%):
Capital Goods (3.9%):
13 BW/IP Holdings, Inc.................. 254
6 Case Corp............................ 427
11 Cooper Industries, Inc............... 537
16 Emerson Electric Co.................. 887
40 General Electric Co.................. 2,621
13 Ingersoll Rand Co.................... 772
21 Teleflex, Inc........................ 644
15 Thermo Electron Corp. (b)............ 524
--------
6,666
--------
Consumer Durable (1.4%):
25 Autozone, Inc. (b)................... 591
28 Chrysler Corp........................ 910
13 Lear Corp. (b)....................... 568
7 Whirlpool Corp....................... 398
--------
2,467
--------
Consumer Non-Durable (6.1%):
29 Archer-Daniels-Midland Co............ 672
12 Coca Cola Co......................... 844
10 Dole Food, Inc. (c).................. 415
14 McCormick & Co., Inc................. 348
34 PepsiCo, Inc......................... 1,285
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Consumer Non-Durable, continued:
42 Philip Morris Co., Inc............... $ 1,872
6 Proctor & Gamble Co.................. 890
13 Quaker Oats Co....................... 570
17 Revlon, Inc. (b)..................... 902
21 RJR Nabisco Holdings Corp............ 703
21 Supervalu, Inc....................... 735
23 Sysco Corp........................... 850
7 Universal Corp....................... 229
--------
10,315
--------
Consumer Services (3.2%):
10 Belo (A.H.) Corp., Series A.......... 404
16 Callaway Golf Co. (c)................ 557
30 CUC International, Inc. (b)(c)....... 769
23 Hasbro, Inc. (c)..................... 660
23 Hilton Hotels Corp................... 598
12 Mattel, Inc. (c)..................... 420
10 MGM Grand, Inc. (b)(c)............... 374
22 Time Warner, Inc. (c)................ 1,080
6 Walt Disney Co....................... 506
--------
5,368
--------
Energy (4.0%):
9 Ashland, Inc......................... 408
10 Atlantic Richfield Co................ 733
8 Devon Energy Corp.................... 290
7 Dresser Industries, Inc. (c)......... 276
29 Exxon Corp........................... 1,783
15 Mapco, Inc........................... 457
19 Mobil Corp........................... 1,314
20 Tosco Corp........................... 587
20 USX-Marathon Group................... 566
10 Weatherford Enterra, Inc. (b)........ 389
--------
6,803
--------
Financial Services (8.1%):
1 American International Group, Inc.... 194
14 BankAmerica Corp..................... 917
5 Cigna Corp........................... 941
20 Equitable Co., Inc. (c).............. 658
31 Federal National Mortgage Assoc...... 1,351
11 First Union Corp..................... 971
5 First Virginia Banks, Inc............ 302
13 Fleet Financial Group, Inc........... 797
11 Hartford Financial Services Group.... 935
15 Mellon Bank Corp. (c)................ 659
15 Morgan Stanley Dean Witter
Discover........................... 659
15 National City Corp................... 809
11 Pacific Century Financial Corp....... 495
5 Provident Co., Inc................... 262
12 Regions Financial Corp............... 386
16 Southtrust Corp...................... 641
</TABLE>
Continued
25
<PAGE> 28
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
14 SunTrust Banks, Inc.................. $ 793
6 TransAmerica Corp.................... 589
20 Travelers Group, Inc................. 1,274
6 Washington Mutual, Inc. (c).......... 370
--------
14,003
--------
Health Care (6.7%):
17 Abbott Labs.......................... 1,128
9 Amgen, Inc. (b)...................... 517
13 Baxter International, Inc............ 695
9 Boston Scientific Corp. (b).......... 571
20 Bristol Myers Squibb Co.............. 1,604
7 Cardinal Health, Inc. (c)............ 384
7 Centocor, Inc. (b)................... 205
13 Columbia/HCA Healthcare Corp. (c).... 491
12 Eli Lilly & Co....................... 1,268
7 Guidant Corp......................... 561
4 HBO & Co............................. 269
20 Merck & Co., Inc..................... 2,080
9 Phycor, Inc. (b)(c).................. 300
20 Schering Plough Corp................. 967
10 Vencor, Inc. (b)..................... 441
--------
11,481
--------
Raw Materials (2.9%):
13 B. F. Goodrich Co.................... 576
9 Betzdearborn, Inc. (c)............... 581
11 Du Pont (EI) de Nemours & Co......... 666
11 Ferro Corp........................... 411
11 Lubrizol Corp........................ 440
13 Monsanto Co.......................... 560
14 Morton International, Inc............ 426
13 Nalco Chemical Co.................... 483
9 Praxair, Inc......................... 521
20 Wellman, Inc......................... 339
--------
5,003
--------
Retail (3.1%):
17 Dollar General Corp.................. 632
27 Just For Feet, Inc. (b)(c)........... 469
22 Kroger Co. (b)....................... 650
34 Officemax, Inc. (b).................. 497
9 Outback Steakhouse, Inc. (b)......... 220
13 TJX Co., Inc. (c).................... 332
20 Toys R Us, Inc. (b)(c)............... 707
51 Wal-Mart Stores, Inc................. 1,731
--------
5,238
--------
Shelter (1.1%):
25 Kaufman & Broad Home Corp............ 434
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Shelter, continued:
12 Masco Corp. (c)...................... $ 484
12 Pentair, Inc......................... 388
9 Weyerhaeuser Co...................... 489
--------
1,795
--------
Technology (8.1%):
5 Altera Corp. (b)(c).................. 273
17 Analog Devices, Inc. (b)(c).......... 454
9 Applied Materials, Inc. (b).......... 630
9 BMC Software, Inc. (b)............... 509
11 Cadence Design Systems, Inc. (b)..... 355
16 Cisco Systems, Inc. (b).............. 1,081
6 Compaq Computer Corp. (b)............ 615
7 Dell Computer Corp. (b).............. 787
4 General Motors Corp., Class H........ 254
18 Hewlett Packard Co................... 1,008
14 Intel Corp........................... 1,914
17 International Business Machines...... 1,524
6 Lockheed Martin Corp................. 601
8 Lucent Technologies, Inc............. 548
20 Microsoft Corp. (b).................. 2,465
15 Orbital Sciences Corp. (b)(c)........ 241
12 Rohr Industries, Inc. (b)............ 272
7 Teradyne, Inc. (b)................... 287
--------
13,818
--------
Utilities (5.5%):
8 AES Corp. (b)(c)..................... 580
10 Century Telephone Enterprises........ 327
35 Edison International................. 858
19 Enron Corp. (c)...................... 771
18 General Public Utilities Corp........ 646
30 GTE Corp............................. 1,307
17 MCI Communications Corp.............. 651
12 MCN Corp............................. 377
10 National Fuel Gas Co................. 428
25 New York State Electric & Gas........ 530
22 SBC Communications, Inc.............. 1,361
18 Sprint Corp. (c)..................... 942
16 Texas Utilities...................... 544
--------
9,322
--------
Total Common Stocks 92,279
--------
CORPORATE BONDS (12.0%):
Banking, Finance & Insurance (7.6%):
$ 1,000 Association Corp., 8.27%, 11/8/01.... $ 1,055
1,000 Bankamerica Corp., 8.13%, 2/1/02..... 1,049
500 Chrysler Financial Corp., 5.88%,
2/7/01............................. 488
420 Circuit City Credit Card Master
Trust, 6.38%, 8/15/05.............. 419
1,000 First Hawaiian, Inc., 6.25%,
8/15/00............................ 985
</TABLE>
Continued
26
<PAGE> 29
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Banking, Finance & Insurance, continued:
$ 610 Ford Credit Auto Loan Master Trust,
5.50%, 2/15/03..................... $ 588
500 Ford Motor Credit Corp., 8.38%,
1/15/00............................ 521
250 General Motors Acceptance Corp.,
7.00%, 3/1/00...................... 253
1,000 General Motors Acceptance Corp.,
8.25%, 2/24/04..................... 1,057
1,000 Goldman Sachs Group, 7.20%, 3/1/07,
144 A.............................. 1,004
750 Huntington National Bank, 6.75%,
6/15/03............................ 740
250 Lehman Brothers Holdings, Inc.,
6.38%, 6/1/98...................... 251
300 Lehman Brothers Holdings, Inc.,
8.88%, 11/1/98..................... 310
500 Lehman Brothers, Inc., 9.88%,
10/15/00........................... 544
550 MBNA Master Credit Card, 5.40%,
3/15/99............................ 546
800 McDonnell Douglas Corp., 9.30%,
9/11/02............................ 842
500 Midland Bank PLC, 6.95%, 3/15/11..... 483
250 Nationsbank Texas, 6.75%, 8/15/00.... 251
1,000 Society National Bank, 6.75%,
6/15/03............................ 991
500 Suntrust Banks, 7.38%, 7/1/02........ 511
--------
12,888
--------
Industrials (2.5%):
250 Anheuser Busch Co., 8.75%, 12/1/99... 263
500 Campbell Soup Co., 5.63%, 9/15/03.... 471
250 Coca-Cola Co., 7.88%, 9/15/98........ 255
500 Dayton Hudson Corp., 7.25%, 9/1/04... 502
200 Du Pont (EI) de Nemours & Co., 8.70%,
2/7/01............................. 213
250 Ford Motor Co., 9.00%, 9/15/01....... 269
200 Illinois Tool Works, 7.50%,
12/1/98............................ 203
500 J C Penney & Co., 5.38%, 11/15/98.... 494
250 Johnson & Johnson, 7.38%, 6/29/02.... 257
500 Occidental Petroleum, 9.25%,
8/1/19............................. 581
750 Sears Roebuck Acceptance, 7.13%,
5/2/03............................. 758
--------
4,266
--------
Transportation (0.3%):
500 Union Pacific Co., 7.60%, 5/1/05..... 513
--------
Utilities (1.6%):
500 AT&T Corp., 6.00%, 8/1/00............ 492
500 AT&T Corp., 7.50%, 6/1/06............ 516
250 Duke Power Co., 7.00%, 7/1/00........ 253
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities, continued:
$ 250 Southern California Edison, 7.50%,
4/15/99............................ $ 255
500 Virginia Electric & Power, 6.63%,
4/1/03............................. 494
675 Virginia Electric & Power MTN, 9.15%,
6/10/99............................ 707
--------
2,717
--------
Total Corporate Bonds 20,384
--------
FEDERAL AGENCY DEBENTURES (1.2%):
Federal National Mortgage Assoc. (1.2%):
1,000 5.55%, 9/8/98........................ 997
1,000 5.53%, 2/10/99....................... 988
--------
Total Federal Agency Debentures 1,985
--------
U.S. GOVERNMENT AGENCY MORTGAGES (14.8%):
Federal Home Loan Mortgage Corp. (5.2%):
182 10.00%, 9/1/03, Pool #E30407......... 192
308 8.00%, 3/1/08, Pool #E45796.......... 317
983 7.00%, 1/1/12, Pool #E66116.......... 984
331 10.50%, 10/1/20, Pool #D24679........ 367
828 8.00%, 4/1/25, Pool #C00401.......... 850
925 8.00%, 5/1/25, Pool #D60455.......... 949
482 7.00%, 2/1/26, Pool #D69343.......... 474
705 6.50%, 2/1/26, Pool #D68616.......... 677
975 6.50%, 2/1/26, Pool #D68124.......... 936
491 7.00%, 3/1/26, Pool #D69430.......... 482
951 7.50%, 5/1/26, Pool #C00460.......... 956
890 8.50%, 7/1/26, Pool #C00472.......... 926
991 7.00%, 10/1/26, Pool #D75494......... 974
--------
9,084
--------
Federal National Conventional Loan (0.7%):
667 8.00%, 6/1/24, Pool #270402.......... 684
417 8.00%, 6/1/24, Pool #250085.......... 428
--------
1,112
--------
Federal National Mortgage Assoc. (3.8%):
275 6.40%, 3/25/03....................... 268
250 6.40%, 1/13/04....................... 243
300 8.05%, 7/14/04....................... 300
929 6.50%, 5/1/11, Pool #337195.......... 912
924 7.00%, 7/1/25, Pool #317252.......... 908
914 6.50%, 2/1/26, Pool #337115.......... 875
936 7.50%, 5/1/26, Pool #344916.......... 939
979 7.00%, 5/1/26, Pool #346269.......... 960
983 7.50%, 11/1/26, Pool #363626......... 986
--------
6,391
--------
Government National Mortgage Assoc. (5.1%):
772 5.50%, 4/20/11, Pool #2222........... 722
118 8.00%, 4/15/17, Pool # 192100........ 122
</TABLE>
Continued
27
<PAGE> 30
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCY MORTGAGES, CONTINUED:
Government National Mortgage Assoc., continued:
$ 77 8.00%, 5/15/22, Pool #329176......... $ 79
90 6.50%, 1/15/24, Pool #376656......... 87
236 8.00%, 4/15/24, Pool #376038......... 242
1,231 8.00%, 8/15/24, Pool #394024......... 1,266
1,428 7.00%, 8/15/25, Pool #413007......... 1,407
990 6.50%, 4/15/26, Pool #424185......... 947
994 6.50%, 4/15/26, Pool #416192......... 951
929 7.50%, 5/15/26, Pool #375345......... 933
990 7.00%, 5/15/26, Pool #375344......... 973
925 8.50%, 1/15/27, Pool #432266......... 962
--------
8,691
--------
Total U.S. Government Agency Mortgages 25,278
--------
U.S. TREASURY OBLIGATIONS (14.3%):
U.S. Treasury Bills (0.1%):
110 7/10/97 (d).......................... 110
35 7/17/97 (d).......................... 35
90 8/21/97 (d).......................... 89
--------
234
--------
U.S. Treasury Bonds (4.7%):
750 11.25%, 2/15/15...................... 1,089
900 7.50%, 11/15/16...................... 962
4,700 8.13%, 8/15/19 (c)................... 5,362
500 7.88%, 2/15/21 (c)................... 557
--------
7,970
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS, CONTINUED:
U.S. Treasury Notes (9.5%):
$ 3,500 7.25%, 2/15/98 (c)................... $ 3,532
600 9.00%, 5/15/98....................... 616
200 8.88%, 2/15/99....................... 209
300 5.88%, 3/31/99....................... 299
3,250 7.00%, 4/15/99 (c)................... 3,301
300 6.00%, 10/15/99 (c).................. 299
250 7.75%, 11/30/99...................... 259
2,500 7.75%, 1/31/00 (c)................... 2,590
3,000 6.50%, 5/31/01....................... 3,015
300 6.50%, 8/31/01....................... 301
150 6.25%, 2/15/03 (c)................... 149
1,500 6.50%, 5/15/05 (c)................... 1,496
--------
16,066
--------
Total U.S. Treasury Obligations 24,270
--------
REPURCHASE AGREEMENTS (1.6%):
2,640 Aubrey G. Lanston & Co., 5.90%,
7/1/97 (Collateralized by $2,640
U.S. Treasury Notes, 6.25%,
1/31/02, market value-$2,761) 2,640
--------
Total Repurchase Agreements 2,640
--------
Total (Cost--$153,456) (a) $170,647
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $170,250.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $77. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $18,134
Unrealized depreciation.................................................. (1,020)
-------
Net unrealized appreciation.............................................. $17,114
=======
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
(d) Serves as collateral for futures contracts.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- ---------- --------------------------------- --------- -------
<C> <S> <C> <C>
Long S&P 500 September 1997
1 Futures $428 $445
</TABLE>
See notes to financial statements.
28
<PAGE> 31
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INCOME EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (88.6%):
Business Equipment & Services (3.2%):
85 Automatic Data Processing, Inc.
(b)............................... $ 3,995
210 Browning-Ferris Industries, Inc.
(b)............................... 6,983
225 Dun & Bradstreet Corp............... 5,906
180 National Service Industries, Inc.... 8,764
--------
25,648
--------
Capital Goods (5.1%):
215 Cooper Industries, Inc.............. 10,696
80 Deere & Co.......................... 4,390
300 General Electric Co................. 19,614
70 Johnson Controls, Inc. (b).......... 2,874
155 Westinghouse Electric Corp.......... 3,581
--------
41,155
--------
Consumer Durable (1.9%):
70 Briggs & Stratton Corp.............. 3,500
320 Ford Motor Co....................... 12,080
--------
15,580
--------
Consumer Non-Durable (15.7%):
110 American Greetings Corp., Class A... 4,084
240 Campbell Soup Co.................... 12,000
75 Clorox Co........................... 9,900
230 Coca Cola Co........................ 16,041
235 ConAgra, Inc........................ 15,069
145 Eastman Kodak Co.................... 11,129
160 H.J. Heinz Co....................... 7,380
125 International Flavors & Fragrances,
Inc............................... 6,313
60 McCormick & Co., Inc................ 1,515
80 PepsiCo, Inc........................ 3,005
360 Philip Morris Co., Inc.............. 15,975
95 Proctor & Gamble Co. (b)............ 13,419
55 Quaker Oats Co...................... 2,468
100 RJR Nabisco Holdings Corp........... 3,300
60 V.F. Corp........................... 5,108
--------
126,706
--------
Consumer Services (1.1%):
150 McGraw-Hill Co., Inc................ 8,822
--------
Energy (10.9%):
160 Amoco Corp.......................... 13,910
100 Atlantic Richfield Co............... 7,050
150 Dresser Industries, Inc............. 5,588
300 Exxon Corp.......................... 18,450
85 Halliburton Co...................... 6,736
240 Mobil Corp.......................... 16,770
360 Royal Dutch Petroleum Co............ 19,575
--------
88,079
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (16.2%):
160 Allstate Corp....................... $ 11,680
250 American Express Co. (b)............ 18,625
300 BankAmerica Corp.................... 19,367
60 Chase Manhattan Corp................ 5,824
50 Citicorp............................ 6,028
180 Federal National Mortgage Assoc..... 7,853
130 First Tennessee National Corp.
(b)............................... 6,240
145 J.P. Morgan & Co., Inc.............. 15,134
190 Lincoln National Corp............... 12,231
85 National City Corp.................. 4,463
100 Reliastar Financial Corp............ 7,313
100 TransAmerica Corp................... 9,356
115 U.S. Bancorp (b).................... 7,374
--------
131,488
--------
Health Care (11.7%):
185 American Home Products Co........... 14,153
260 Baxter International, Inc........... 13,585
285 Bristol Myers Squibb Co............. 23,083
50 Merck & Co., Inc.................... 5,175
75 Pfizer, Inc......................... 8,963
220 Schering Plough Corp................ 10,533
150 Warner Lambert Co................... 18,638
--------
94,130
--------
Multi-Industry (1.1%):
85 Minnesota Mining & Manufacturing
Co................................ 8,670
--------
Raw Materials (4.2%):
170 Dow Chemical Co..................... 14,811
140 Du Pont (EI) de Nemours & Co........ 8,803
170 Nalco Chemical Co................... 6,566
150 Pall Corp. (b)...................... 3,488
--------
33,668
--------
Retail (2.5%):
120 Albertsons, Inc..................... 4,380
115 May Department Stores Co............ 5,434
185 Wal-Mart Stores, Inc................ 6,255
80 Walgreen Co......................... 4,290
--------
20,359
--------
Shelter (0.4%):
60 Weyerhaeuser Co..................... 3,120
--------
Technology (6.8%):
100 AMP, Inc. (b)....................... 4,175
100 Boeing Co. (b)...................... 5,306
110 Hewlett Packard Co.................. 6,160
30 Intel Corp.......................... 4,254
60 International Business Machines..... 5,411
65 Lockheed Martin Corp................ 6,732
</TABLE>
Continued
29
<PAGE> 32
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INCOME EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
90 United Technologies Corp............ $ 7,470
200 Xerox Corp.......................... 15,775
--------
55,283
--------
Transportation (0.8%):
95 Union Pacific Corp. (b)............. 6,698
--------
Utilities (7.0%):
170 AT&T Corp. (b)...................... 5,961
175 BellSouth Corp...................... 8,116
175 Central & South West Corp........... 3,719
160 Entergy Corp. (b)................... 4,380
210 GTE Corp............................ 9,214
120 Ku Energy Cop. (b).................. 4,095
110 Questar Corp........................ 4,441
200 SBC Communications, Inc............. 12,374
80 Sprint Corp......................... 4,210
--------
56,510
--------
Total Common Stocks 715,916
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
CONVERTIBLE BONDS (5.0%):
$ 7,000 Alza Corp., 5.00%, 5/1/06........... $ 7,096
6,500 Hilton Hotels Corp., 5.00%,
5/15/06........................... 6,923
6,500 Home Depot, Inc., 3.25%, 10/1/01,
Callable 10/1/99 @ 100.81......... 7,425
7,000 Masco Corp., 5.25%, 2/15/12......... 7,368
5,500 Medical Care International, 6.75%,
10/1/06........................... 5,528
5,500 Pep Boys-Manny, Moe & Jack, 4.00%,
9/1/99............................ 5,665
--------
Total Convertible Bonds 40,005
--------
PREFERRED STOCKS (5.0%):
160 Corning Delaware.................... 13,920
120 Crown Cork & Seal Co................ 6,060
120 Cyprus Amax Minerals Co............. 6,660
45 Microsoft Corp...................... 3,915
155 Sonoco Products..................... 9,939
--------
Total Preferred Stocks 40,494
--------
REPURCHASE AGREEMENTS (1.2%):
9,787 Prudential Securities, 6.05%, due
7/1/97 (collateralized by $10,031
U.S. Treasury Note, 5.75%,
10/31/00, market value $9,983).... 9,787
--------
Total Repurchase Agreements 9,787
--------
Total (Cost--$449,883) (a) $806,202
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $807,501.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $357,471
Unrealized depreciation.................................................. (1,152)
--------
Net unrealized appreciation.............................................. $356,319
========
</TABLE>
(b) A portion of this security was loaned as of June 30, 1997.
See notes to financial statements.
30
<PAGE> 33
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (95.4%):
Business Equipment & Services (1.9%):
31 Automatic Data Processing, Inc.
(c)............................... $ 1,454
22 Browning-Ferris Industries, Inc..... 741
9 Canadian Moore Corp., Ltd........... 181
8 Ceridian Corp. (b)(c)............... 336
18 Cognizant Corp...................... 725
8 Computer Sciences Corp. (b)......... 563
9 Deluxe Corp......................... 303
18 Dun & Bradstreet Corp............... 470
7 Ecolab, Inc......................... 327
16 Equifax, Inc........................ 584
47 First Data Corp. (c)................ 2,071
11 H & R Block......................... 344
13 Ikon Office Solutions............... 336
9 Interpublic Group Co., Inc.......... 521
3 John H. Harland Co.................. 65
31 Laidlaw Inc., Class B, Non-Voting... 432
5 National Service Industries, Inc.... 255
16 Pitney Bowes, Inc................... 1,124
16 R.R. Donnelley & Sons Co............ 596
9 Ryder Systems, Inc.................. 281
6 Safety-Kleen Corp................... 108
24 Service Corp. International (c)..... 783
48 WMX Technologies, Inc............... 1,526
--------
14,126
--------
Capital Goods (5.8%):
3 Aeroquip-Vickers, Inc............... 121
9 Black & Decker Corp................. 335
8 Case Corp........................... 517
20 Caterpillar, Inc.................... 2,170
4 Cincinnati Milacron, Inc............ 105
12 Cooper Industries, Inc.............. 619
4 Crane Co............................ 187
4 Cummins Engine, Inc................. 301
27 Deere & Co.......................... 1,471
12 Dover Corp.......................... 721
47 Emerson Electric Co................. 2,586
9 Fluor Corp.......................... 490
4 Foster Wheeler Corp................. 160
345 General Electric Co................. 22,547
5 General Signal Corp. (c)............ 237
3 Giddings & Lewis, Inc............... 69
6 Grainger W.W., Inc.................. 463
5 Harnischfeger Industries, Inc.
(c)............................... 217
13 Honeywell, Inc...................... 1,009
25 Illinois Tool Works (c)............. 1,249
11 Ingersoll Rand Co................... 669
9 Johnson Controls, Inc............... 353
0 Nacco Industries, Inc............... 22
8 Navistar International Corp. (b).... 142
5 Owens-Corning Fiberglass Corp....... 235
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Capital Goods, continued:
8 Paccar, Inc......................... $ 366
8 Parker-Hannifin Corp................ 481
19 PPG Industries, Inc................. 1,117
18 Sherwin-Williams Co................. 570
7 Snap-On, Inc........................ 270
9 Stanley Works....................... 367
16 Thermo Electron Corp. (b)........... 530
6 Timken Co........................... 201
17 Tyco International, Ltd. (c)........ 1,214
65 Westinghouse Electric Corp.......... 1,509
--------
43,620
--------
Consumer Durable (2.2%):
16 Autozone, Inc. (b).................. 375
2 Briggs & Stratton Corp.............. 99
74 Chrysler Corp....................... 2,425
9 Cooper Tire & Rubber Co............. 198
10 Dana Corp........................... 395
8 Eaton Corp.......................... 726
7 Echlin, Inc......................... 239
125 Ford Motor Co....................... 4,701
77 General Motors Corp................. 4,270
19 Genuine Parts Co.................... 650
16 Goodyear Tire & Rubber Co........... 1,008
12 ITT Industries, Inc................. 313
11 Maytag Corp......................... 281
8 Whirlpool Corp...................... 442
--------
16,122
--------
Consumer Non-Durable (12.4%):
5 Alberto Culver Co., Class B (c)..... 150
8 American Greetings Corp., Class A... 301
52 Anheuser Busch Co., Inc............. 2,182
58 Archer-Daniels-Midland Co........... 1,372
14 Avon Products, Inc.................. 1,016
3 Ball Corp........................... 79
6 Bemis Co............................ 261
7 Brown-Forman Corp., Class B......... 361
49 Campbell Soup Co.................... 2,461
6 Clorox Co........................... 743
260 Coca Cola Co........................ 18,155
31 Colgate Palmolive Co. (c)........... 1,998
25 ConAgra, Inc........................ 1,612
4 Coors Adolph Co., Class B........... 102
15 CPC International................... 1,412
13 Crown Cork & Seal Co. (c)........... 698
35 Eastman Kodak Co.................... 2,717
4 Fleming Co., Inc.................... 68
18 Fortune Brands, Inc................. 688
8 Fruit of the Loom, Inc., Class A
(b)............................... 257
17 General Mills, Inc. (c)............. 1,086
58 Gillette Co......................... 5,514
</TABLE>
Continued
31
<PAGE> 34
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Non-Durable, continued:
39 H.J. Heinz Co....................... $ 1,776
16 Hershey Foods Corp.................. 893
12 International Flavors &
Fragrances, Inc................... 582
4 Jostens, Inc........................ 112
23 Kellogg Co. (c)..................... 1,948
8 Liz Claiborne, Inc. (c)............. 382
17 Newell Co........................... 667
30 Nike, Inc., Class B................. 1,769
162 PepsiCo, Inc........................ 6,096
255 Philip Morris Co., Inc.............. 11,331
9 Pioneer Hi-Bred International,
Inc............................... 736
5 Polaroid Corp....................... 277
71 Proctor & Gamble Co................. 10,034
14 Quaker Oats Co...................... 624
11 Ralston Purina Group................ 899
6 Reebok International Ltd. (b)....... 293
16 Rubbermaid, Inc..................... 487
4 Russell Corp........................ 120
51 Sara Lee, Corp...................... 2,105
39 Seagram Co., Ltd.................... 1,577
1 Springs Industries, Inc., Class A... 66
6 Stride Rite Corp.................... 73
8 Supervalu, Inc...................... 262
19 Sysco Corp.......................... 699
7 Tupperware Corp..................... 249
17 Unilever N V........................ 3,569
21 UST, Inc............................ 578
7 V.F. Corp........................... 589
12 Wrigley (Wm.) Junior Co. (c)........ 813
--------
92,839
--------
Consumer Services (3.3%):
10 Brunswick Corp...................... 315
34 Comcast Corp., Class A.............. 736
41 CUC International, Inc. (b)(c)...... 1,065
10 Dow Jones & Co., Inc................ 410
15 Gannett, Inc........................ 1,459
10 Harrah's Entertainment, Inc. (b).... 191
14 Hasbro, Inc. (c).................... 390
26 Hilton Hotels Corp.................. 696
16 Hospitality Franchise Systems, Inc.
(b)............................... 951
12 ITT Corp. (b)....................... 735
4 King World Productions, Inc. (b).... 131
10 Knight-Ridder, Inc.................. 513
13 Marriott International, Inc......... 813
29 Mattel, Inc. (c).................... 977
11 McGraw-Hill Co., Inc................ 627
5 Meredith Corp....................... 155
10 New York Times Co., Class A......... 525
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Services, continued:
69 Tele-Communications, Inc.,
Class A (b)(c).................... $ 1,019
60 Time Warner, Inc.................... 2,878
11 Times Mirror Co., Class A (c)....... 632
14 Tribune Co.......................... 669
49 U.S. West, Inc. (b)................. 1,856
38 Viacom, Inc., Class B (b)........... 1,131
71 Walt Disney Co...................... 5,705
--------
24,579
--------
Energy (8.5%):
10 Amerada Hess Corp................... 538
52 Amoco Corp.......................... 4,512
7 Ashland, Inc........................ 316
34 Atlantic Richfield Co............... 2,393
15 Baker Hughes, Inc................... 578
13 Burlington Northern................. 582
68 Chevron Corp. (c)................... 5,022
19 Dresser Industries, Inc............. 690
260 Exxon Corp.......................... 15,988
13 Halliburton Co...................... 1,043
2 Helmerich & Payne, Inc.............. 114
6 Kerr McGee Corp..................... 363
3 Louisiana Land & Exploration Co..... 187
6 McDermott International, Inc........ 182
82 Mobil Corp.......................... 5,764
33 Occidental Petroleums Corp. (c)..... 839
10 Oryx Energy Co. (b)................. 217
5 Pennzoil Co......................... 387
27 Phillips Petroleum Co............... 1,201
9 Rowan Cos., Inc. (b)(c)............. 251
224 Royal Dutch Petroleum Co............ 12,192
9 Santa Fe Energy Resources, Inc.
(b)............................... 137
25 Schlumberger Ltd.................... 3,184
8 Sun, Inc. (c)....................... 243
19 Tenneco, Inc........................ 837
27 Texaco, Inc......................... 2,984
26 Union Pacific Resources Group,
Inc............................... 648
26 Unocal Corp......................... 1,000
30 USX-Marathon Group.................. 875
6 Western Atlas, Inc. (b)............. 461
--------
63,728
--------
Financial Services (14.4%):
47 Allstate Corp....................... 3,411
50 American Express Co................. 3,711
25 American General Corp. (c).......... 1,209
49 American International Group,
Inc............................... 7,385
17 Aon Corp............................ 854
46 Banc One Corp. (c).................. 2,212
42 Bank of New York Co., Inc. (c)...... 1,805
75 BankAmerica Corp.................... 4,871
</TABLE>
Continued
32
<PAGE> 35
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
16 Bankboston Corp..................... $ 1,122
9 Bankers Trust New York Corp. (c).... 764
22 Barnett Banks, Inc.................. 1,146
6 Beneficial Corp..................... 427
18 Charles Schwab Corp................. 749
46 Chase Manhattan Corp................ 4,432
18 Chubb Corp.......................... 1,229
8 Cigna Corp.......................... 1,438
49 Citicorp............................ 5,876
12 Comerica, Inc....................... 789
19 Conseco, Inc. (c)................... 692
22 Corestates Financial Corp........... 1,169
11 Country Wide Credit................. 337
74 Federal Home Loan Mortgage Corp..... 2,558
111 Federal National Mortgage Assoc..... 4,862
11 Fifth Third Bancorp................. 911
14 First Bank System, Inc.............. 1,195
33 First Chicago NBD Corp.............. 2,002
29 First Union Corp. (c)............... 2,712
27 Fleet Financial Group, Inc.......... 1,713
9 General Re Corp..................... 1,617
7 Golden West Financial Corp.......... 470
14 Great Western Financial Corp........ 754
14 Green Tree Financial Corp........... 509
12 H.F. Ahmanson & Co.................. 509
12 Hartford Financial Services Group... 997
11 Household International, Inc........ 1,314
19 J.P. Morgan & Co., Inc.............. 2,019
8 Jefferson Pilot Corp................ 543
24 KeyCorp............................. 1,341
11 Lincoln National Corp............... 694
17 Marsh & McLennan Co................. 1,228
4 MBIA, Inc........................... 496
35 MBNA Corp. (c)...................... 1,280
28 Mellon Bank Corp. (c)............... 1,263
35 Merrill Lynch & Co.................. 2,071
13 MGIC Investment Corp. (c)........... 604
60 Morgan Stanley Dean Witter
Discover.......................... 2,584
23 National City Corp.................. 1,223
77 NationsBank Corp.................... 4,937
39 Norwest Corp. (c)................... 2,169
34 PNC Bank Corp....................... 1,405
10 Providian Financial................. 324
6 Republic N Y Corp................... 645
13 SAFECO Corp......................... 599
11 Salomon, Inc. (c)................... 614
9 St. Paul Co., Inc. (c).............. 688
24 SunTrust Banks, Inc................. 1,325
8 Torchmark Corp...................... 552
7 TransAmerica Corp................... 646
67 Travelers Group, Inc................ 4,223
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
COMMON STOCKS, CONTINUED:
Financial Services, continued:
16 U.S. Bancorp........................ $ 1,047
16 UNUM Corp........................... 680
12 USF & G Corp. (c)................... 286
18 Wachovia Corp....................... 1,044
9 Wells Fargo & Co. (c)............... 2,548
--------
106,829
--------
Health Care (11.1%):
82 Abbott Labs......................... 5,445
15 Aetna............................... 1,578
7 Allergan, Inc....................... 220
9 Alza Corp. (b)...................... 258
68 American Home Products Co. (c)...... 5,167
28 Amgen, Inc. (b)..................... 1,616
6 Bard C.R., Inc...................... 223
6 Bausch & Lomb, Inc.................. 302
29 Baxter International, Inc........... 1,505
14 Becton Dickinson & Co. (c).......... 697
9 Beverly Enterprises, Inc. (b)....... 152
12 Biomet, Inc. (c).................... 226
20 Boston Scientific Corp. (b)......... 1,247
105 Bristol Myers Squibb Co............. 8,482
11 Cardinal Health, Inc. (c)........... 653
70 Columbia/HCA Healthcare Corp. (c)... 2,738
58 Eli Lilly & Co...................... 6,315
8 Guidant Corp........................ 646
36 Healthsouth Corp. (b)(c)............ 898
17 Humana, Inc. (b).................... 393
139 Johnson & Johnson................... 8,972
8 Mallinckrodt Group, Inc............. 320
7 Manor Care, Inc..................... 222
25 Medtronic, Inc...................... 2,046
126 Merck & Co., Inc.................... 13,078
5 Millipore Corp...................... 220
67 Pfizer, Inc......................... 8,052
53 Pharmacia & Upjohn, Inc. (c)........ 1,841
77 Schering Plough Corp................ 3,684
2 Shared Medical Systems Corp. (c).... 94
9 St. Jude Medical Center, Inc.
(b)(c)............................ 347
30 Tenet Healthcare Corp. (b).......... 884
7 U.S. Surgical, Corp................. 242
19 United Healthcare Corp.............. 987
28 Warner Lambert Co................... 3,532
--------
83,282
--------
Multi-Industry (1.7%):
29 Allied Signal, Inc.................. 2,472
24 Corning, Inc. (c)................... 1,337
4 FMC Corp. (b)....................... 283
8 Harcourt General, Inc............... 383
12 Loews Corp.......................... 1,232
44 Minnesota Mining & Manufacturing
Co................................ 4,487
</TABLE>
Continued
33
<PAGE> 36
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Multi-Industry, continued:
17 Textron, Inc........................ $ 1,146
14 TRW, Inc............................ 769
11 Whittman Corp....................... 272
--------
12,381
--------
Raw Materials (3.8%):
12 Air Products & Chemical, Inc........ 955
23 Alcan Aluminum Ltd.................. 813
18 Allegheny Teledyne, Inc............. 491
18 Aluminum Co. of America (c)......... 1,385
11 Armco, Inc. (b)..................... 41
5 ASARCO, Inc......................... 139
12 Avery Dennison Corp................. 479
6 B. F. Goodrich Co................... 244
37 Barrick Gold Corp. (c).............. 821
24 Battle Mountain Gold Co............. 134
11 Bethlehem Steel Corp. (b)........... 118
10 Cyprus Amax Minerals Co............. 253
25 Dow Chemical Co..................... 2,141
118 Du Pont (EI) de Nemours & Co........ 7,440
9 Eastman Chemical Co................. 556
13 Echo Bay Mines Ltd. (b)............. 72
15 Engelhard Corp. (c)................. 317
21 Freeport-McMoran Copper & Gold,
Class B (c)....................... 660
7 Great Lakes Chemical Corp........... 367
11 Hercules, Inc. (c).................. 535
15 Homestake Mining Co................. 193
17 Inco Ltd............................ 525
5 Inland Steel Industries, Inc........ 135
61 Monsanto Co......................... 2,646
15 Morton International, Inc........... 464
7 Nalco Chemical Co................... 286
16 Newmont Mining Corp................. 629
9 Nucor Corp.......................... 524
12 Pall Corp. (c)...................... 282
7 Phelps Dodge Corp................... 580
25 Placer Dome, Inc.................... 408
16 Praxair, Inc........................ 881
7 Reynolds Metals Co.................. 485
7 Rohm & Haas Co...................... 603
11 Sigma-Aldrich Corp.................. 375
14 Union Carbide Corp.................. 674
9 USX-U.S. Steel Group, Inc........... 305
8 W.R. Grace & Co..................... 418
10 Worthington Industries, Inc......... 175
--------
28,549
--------
Retail (4.8%):
26 Albertsons, Inc..................... 965
15 American Stores Co.................. 752
11 Charming Shoppes (b)................ 55
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
10 Circuit City Stores, Inc. (c)....... $ 359
21 Costco Companies, Inc. (b).......... 674
17 CVS Corp............................ 895
17 Darden Restaurants, Inc............. 153
23 Dayton Hudson Corp.................. 1,207
12 Dillard Department Stores, Inc.,
Class A........................... 406
21 Federated Department Stores, Inc.
(b)............................... 740
31 Gap, Inc............................ 1,186
6 Giant Food Inc., Class A............ 208
4 Great Atlantic & Pacific Tea,
Inc............................... 107
50 Home Depot, Inc..................... 3,451
27 J.C. Penney, Inc.................... 1,387
48 K Mart, Inc. (b)(c)................. 593
26 Kroger Co. (b)...................... 744
28 Limited, Inc........................ 577
3 Longs Drug Stores, Inc.............. 74
18 Lowe's Co........................... 663
26 May Department Stores Co............ 1,236
73 McDonald's Corp..................... 3,537
4 Mercantile Stores Co., Inc.......... 223
9 Nordstrom, Inc...................... 436
7 Pep Boys-Manny, Moe & Jack.......... 229
12 Rite Aid Corp....................... 603
41 Sears Roebuck & Co.................. 2,195
7 Tandy Corp.......................... 380
16 TJX Co., Inc. (c)................... 422
29 Toys R Us, Inc. (b)................. 1,027
240 Wal-Mart Stores, Inc................ 8,121
26 Walgreen Co......................... 1,397
13 Wendy's International, Inc.......... 343
16 Winn Dixie Stores, Inc.............. 588
14 Woolworth Corp. (b)................. 329
--------
36,262
--------
Shelter (1.5%):
4 Armstrong World Industries, Inc..... 276
5 Boise Cascade Corp. (c)............. 190
3 Centex Corp......................... 110
10 Champion International Co........... 540
3 Fleetwood Enterprises, Inc.......... 103
9 Georgia Pacific Corp................ 810
31 International Paper Co.............. 1,524
9 James River Corp. of Virginia (c)... 329
4 Kaufman & Broad Home Corp........... 70
59 Kimberly Clark Corp................. 2,916
11 Louisiana Pacific Corp.............. 236
17 Masco Corp. (c)..................... 693
6 Mead Corp........................... 387
3 Potlatch Corp....................... 116
2 Pulte Corp.......................... 79
</TABLE>
Continued
34
<PAGE> 37
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Shelter, continued:
10 Stone Container Corp. (b)........... $ 139
6 Temple Inland, Inc.................. 344
7 Union Camp Corp..................... 373
11 Westvaco Corp....................... 331
21 Weyerhaeuser Co..................... 1,104
6 Williamette Industries, Inc. (c).... 441
--------
11,111
--------
Technology (14.1%):
35 3Com Corp. (b)(c)................... 1,566
7 Adobe Systems, Inc.................. 259
14 Advanced Micro Devices, Inc. (b).... 510
12 Amdahl Corp. (b).................... 107
22 AMP, Inc............................ 936
9 Andrew Corp. (b).................... 265
13 Apple Computer, Inc. (b)............ 180
18 Applied Materials, Inc. (b)......... 1,303
5 Auto Desk, Inc...................... 201
20 Bay Networks, Inc. (b).............. 521
75 Boeing Co. (c)...................... 3,976
16 Cabletron Systems, Inc. (b)......... 447
69 Cisco Systems, Inc. (b)............. 4,645
29 Compaq Computer Corp. (b)(c)........ 2,864
38 Computer Associates International,
Inc............................... 2,126
3 Data General Corp. (b)(c)........... 90
18 Dell Computer Corp. (b)............. 2,067
16 Digital Equipment Corp. (b)......... 556
12 DSC Communications Corp. (b)........ 263
6 EG&G, Inc........................... 129
26 EMC Corp. (b)....................... 1,006
7 General Dynamics Corp............... 509
13 General Instrument Corp. (b)(c)..... 315
4 Harris Corp......................... 332
106 Hewlett Packard Co.................. 5,960
86 Intel Corp.......................... 12,179
5 Intergraph Corp. (b)................ 44
104 International Business Machines..... 9,399
20 Lockheed Martin Corp................ 2,092
13 LSI Logic Corp. (b)................. 429
66 Lucent Technologies, Inc............ 4,788
23 McDonnell Douglas Corp.............. 1,579
22 Micron Technology, Inc. (b)(c)...... 859
126 Microsoft Corp. (b)................. 15,885
62 Motorola, Inc....................... 4,686
13 National Semiconductor Corp. (b).... 409
27 Northern Telecom, Ltd............... 2,417
6 Northrop Grumman Corp. (c).......... 543
38 Novell, Inc. (b).................... 264
69 Oracle Corp. (b).................... 3,458
13 Parametric Technology Corp. (b)..... 566
5 Perkin-Elmer Corp................... 371
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
5 Raychem Corp........................ $ 346
26 Raytheon Co. (c).................... 1,308
23 Rockwell International Corp......... 1,349
8 Scientific-Atlanta, Inc............. 181
26 Seagate Technology, Inc. (b)........ 925
17 Silicon Graphics, Inc. (b).......... 261
39 Sun Microsystems, Inc. (b).......... 1,452
12 Tandem Computers (b)................ 246
3 Tektronix, Inc...................... 194
19 Tellabs, Inc. (b)................... 1,034
20 Texas Instruments, Inc.............. 1,655
5 Thomas & Betts Corp................. 281
18 Unisys, Corp. (b)(c)................ 136
25 United Technologies Corp............ 2,113
34 Xerox Corp.......................... 2,683
--------
105,265
--------
Transportation (1.2%):
9 AMR Corp. (b)....................... 870
16 Burlington Northern Santa Fe
Corp. (c)......................... 1,429
4 Caliber Systems, Inc................ 151
2 Consolidated Freightways Corp.
(b)............................... 30
22 CSX Corp. (c)....................... 1,216
8 Delta Air Lines, Inc................ 625
12 Federal Express Corp. (b)(c)........ 719
13 Norfolk Southern Corp............... 1,359
15 Southwest Airlines Co............... 393
26 Union Pacific Corp.................. 1,805
6 US Air Group (b)(c)................. 219
--------
8,816
--------
Utilities (8.7%):
52 Airtouch Communications, Inc. (b)... 1,425
20 Alltel Corp......................... 669
20 American Electric Power, Inc........ 825
58 Ameritech Corp...................... 3,951
169 AT&T Corp. (c)...................... 5,930
15 Baltimore Gas & Electric Co......... 412
46 Bell Atlantic Corp. (c)............. 3,487
104 BellSouth Corp...................... 4,816
16 Carolina Power & Light Co........... 587
22 Central & South West Corp........... 468
16 Cinergy Corp........................ 563
11 Coastal Corp........................ 562
6 Columbia Gas System, Inc............ 400
25 Consolidated Edison Co. of New York,
Inc............................... 724
10 Consolidated Natural Gas Co......... 521
15 Detroit Edison Co................... 423
18 Dominion Resources, Inc. of
Virginia.......................... 662
37 Duke Power Co., Inc................. 1,792
</TABLE>
Continued
35
<PAGE> 38
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities, continued:
1 Eastern Enterprises................. $ 44
43 Edison International................ 1,067
26 Enron Corp. (c)..................... 1,070
7 Enserch Corp........................ 163
24 Entergy Corp. (c)................... 658
20 Florida Power & Light Group, Inc.... 902
17 Frontier Corp....................... 339
12 General Public Utilities Corp....... 434
101 GTE Corp............................ 4,431
27 Houston Industries (c).............. 571
72 MCI Communications Corp............. 2,767
15 Niagara Mohawk Power Corp. (b)...... 129
6 NICOR, Inc.......................... 212
13 Noram Energy Corp................... 200
7 Northern States Power Co............ 379
46 NYNEX Corp.......................... 2,677
16 Ohio Edison Co...................... 349
2 Oneok, Inc.......................... 78
9 Pacific Enterprises................. 302
30 Pacificorp.......................... 663
23 Peco Energy Corp.................... 489
3 Peoples Energy Corp................. 126
44 PG & E Corp. (c).................... 1,077
17 PP&L Resources, Inc................. 331
26 Public Service Enterprise Group..... 640
96 SBC Communications, Inc............. 5,972
9 Sonat, Inc.......................... 466
70 Southern Co......................... 1,529
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
COMMON STOCKS, CONTINUED:
Utilities, continued:
45 Sprint Corp......................... $ 2,384
23 Texas Utilities..................... 806
65 U.S. West Media Group............... 1,323
22 Unicom Corp......................... 498
11 Union Electric Co................... 396
16 Williams Cos., Inc. (c)............. 721
94 WorldCom, Inc. (b)(c)............... 2,995
--------
65,405
--------
Total Common Stocks 712,914
--------
U.S. TREASURY OBLIGATIONS (0.1%):
U.S. Treasury Bills (0.1%):
$ 495 7/17/97 (d)......................... 493
175 8/14/97 (d)......................... 174
290 8/21/97 (d)......................... 288
30 8/28/97 (d)......................... 30
85 9/25/97 (d)......................... 84
--------
Total U.S. Treasury Obligations 1,069
--------
REPURCHASE AGREEMENTS (4.3%):
31,897 Aubrey G. Lanston & Co., 5.90%,
7/1/97 (Collateralized by $31,819
U.S. Treasury Notes, 6.13%,
8/31/98, market value-$33,181).... 31,896
--------
Total Repurchase Agreements 31,896
--------
Total (Cost--$518,526) (a) $745,879
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $747,856.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $616. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $231,704
Unrealized depreciation.................................................. (4,967)
--------
Net unrealized appreciation.............................................. $226,737
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
(d) Serves as collateral for futures contracts.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- ---------- --------------------------------- --------- -------
<C> <S> <C> <C>
Long S&P 500 September 1997
68 Futures $30,649 $30,269
</TABLE>
See notes to financial statements.
36
<PAGE> 39
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
VALUE GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (98.3%):
Capital Goods (7.0%):
64 BW/IP Holdings, Inc................. $ 1,302
32 Case Corp........................... 2,218
56 Cooper Industries, Inc.............. 2,796
83 Emerson Electric Co................. 4,592
202 General Electric Co................. 13,225
63 Ingersoll Rand Co................... 3,915
105 Teleflex, Inc....................... 3,266
79 Thermo Electron Corp. (b)(c)........ 2,669
--------
33,983
--------
Consumer Durable (2.6%):
131 Autozone, Inc. (b).................. 3,077
144 Chrysler Corp....................... 4,725
69 Lear Corp. (b)...................... 3,049
38 Whirlpool Corp...................... 2,068
--------
12,919
--------
Consumer Non-Durable (11.5%):
146 Archer-Daniels-Midland Co........... 3,419
97 Coca Cola Co........................ 6,759
49 Dole Food, Inc...................... 2,108
72 McCormick & Co., Inc................ 1,813
178 PepsiCo, Inc........................ 6,667
220 Philip Morris Co., Inc.............. 9,776
33 Proctor & Gamble Co. (c)............ 4,647
66 Quaker Oats Co...................... 2,966
91 Revlon, Inc. (b).................... 4,710
111 RJR Nabisco Holdings Corp........... 3,670
111 Supervalu, Inc...................... 3,833
121 Sysco Corp. (c)..................... 4,431
37 Universal Corp...................... 1,184
--------
55,983
--------
Consumer Services (5.6%):
49 Belo (A.H.) Corp., Series A......... 2,044
80 Callaway Golf Co. (c)............... 2,822
155 CUC International, Inc. (b)(c)...... 3,996
118 Hasbro, Inc. (c).................... 3,357
114 Hilton Hotels Corp.................. 3,031
65 Mattel, Inc. (c).................... 2,198
51 MGM Grand, Inc. (b)(c).............. 1,876
114 Time Warner, Inc.................... 5,486
33 Walt Disney Co...................... 2,616
--------
27,426
--------
Energy (7.2%):
46 Ashland, Inc........................ 2,133
55 Atlantic Richfield Co............... 3,863
41 Devon Energy Corp................... 1,507
38 Dresser Industries, Inc. (c)........ 1,430
151 Exxon Corp.......................... 9,274
74 Mapco, Inc.......................... 2,322
96 Mobil Corp.......................... 6,708
101 Tosco Corp.......................... 3,018
102 USX-Marathon Group.................. 2,942
53 Weatherford Enterra, Inc. (b)....... 2,033
--------
35,230
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (15.0%):
7 American International Group,
Inc............................... $ 986
101 BankAmerica Corp.................... 6,521
29 Cigna Corp.......................... 5,183
103 Equitable Co., Inc. (c)............. 3,435
158 Federal National Mortgage Assoc..... 6,869
53 First Union Corp. (c)............... 4,940
26 First Virginia Banks, Inc........... 1,568
66 Fleet Financial Group, Inc.......... 4,193
54 Hartford Financial Services Group... 4,444
77 Mellon Bank Corp.................... 3,452
81 Morgan Stanley Dean Witter
Discover.......................... 3,484
79 National City Corp.................. 4,121
51 Pacific Century Financial Corp...... 2,359
25 Provident Co., Inc. (c)............. 1,348
62 Regions Financial Corp.............. 1,961
79 Southtrust Corp..................... 3,269
75 SunTrust Banks, Inc................. 4,124
33 TransAmerica Corp................... 3,088
102 Travelers Group, Inc................ 6,458
31 Washington Mutual, Inc. (c)......... 1,876
--------
73,679
--------
Health Care (12.4%):
88 Abbott Labs......................... 5,861
46 Amgen, Inc. (b)..................... 2,685
69 Baxter International, Inc........... 3,605
49 Boston Scientific Corp. (b)......... 3,004
104 Bristol Myers Squibb Co............. 8,400
34 Cardinal Health, Inc. (c)........... 1,947
35 Centocor, Inc. (b).................. 1,072
85 Columbia/HCA Healthcare Corp. (c)... 3,334
61 Eli Lilly & Co...................... 6,635
35 Guidant Corp........................ 2,958
20 HBO & Co............................ 1,384
105 Merck & Co., Inc.................... 10,908
44 Phycor, Inc. (b)(c)................. 1,529
105 Schering Plough Corp................ 5,008
51 Vencor, Inc. (b).................... 2,219
--------
60,549
--------
Raw Materials (5.3%):
69 B. F. Goodrich Co................... 2,971
46 Betzdearborn, Inc. (c).............. 3,023
55 Du Pont (EI) de Nemours & Co........ 3,458
57 Ferro Corp.......................... 2,094
53 Lubrizol Corp....................... 2,227
67 Monsanto Co......................... 2,902
75 Morton International, Inc........... 2,249
64 Nalco Chemical Co................... 2,472
49 Praxair, Inc........................ 2,727
100 Wellman, Inc........................ 1,731
--------
25,854
--------
Retail (5.5%):
85 Dollar General Corp................. 3,193
139 Just For Feet, Inc. (b)(c).......... 2,429
117 Kroger Co. (b)...................... 3,384
179 Officemax, Inc. (b)................. 2,580
</TABLE>
Continued
37
<PAGE> 40
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
VALUE GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
48 Outback Steakhouse, Inc. (b)........ $ 1,154
65 TJX Co., Inc. (c)................... 1,709
106 Toys R Us, Inc. (b)(c).............. 3,700
260 Wal-Mart Stores, Inc................ 8,801
--------
26,950
--------
Shelter (1.9%):
125 Kaufman & Broad Home Corp........... 2,202
59 Masco Corp. (c)..................... 2,451
61 Pentair, Inc........................ 2,012
48 Weyerhaeuser Co..................... 2,480
--------
9,145
--------
Technology (14.7%):
27 Altera Corp. (b).................... 1,369
85 Analog Devices, Inc. (b)(c)......... 2,268
44 Applied Materials, Inc. (b)......... 3,144
46 BMC Software, Inc. (b).............. 2,558
53 Cadence Design Systems, Inc
(b)(c)............................ 1,782
95 Cisco Systems, Inc. (b)............. 6,404
45 Compaq Computer Corp. (b)(c)........ 4,446
34 Dell Computer Corp. (b)............. 3,946
23 General Motors Corp., Class H....... 1,299
90 Hewlett Packard Co.................. 5,034
67 Intel Corp.......................... 9,544
84 International Business Machines..... 7,612
30 Lockheed Martin Corp................ 3,107
40 Lucent Technologies, Inc............ 2,861
98 Microsoft Corp. (b)................. 12,361
77 Orbital Sciences Corp. (b)(c)....... 1,222
63 Rohr Industries, Inc. (b)........... 1,375
36 Teradyne, Inc. (b).................. 1,425
--------
71,757
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities (9.6%):
44 AES Corp. (b)(c).................... $ 3,141
49 Century Telephone Enterprises....... 1,661
162 Edison International................ 4,032
99 Enron Corp. (c)..................... 4,045
91 General Public Utilities Corp....... 3,279
151 GTE Corp............................ 6,638
82 MCI Communications Corp............. 3,147
64 MCN Corp. (c)....................... 1,957
51 National Fuel Gas Co................ 2,151
107 New York State Electric & Gas....... 2,240
112 SBC Communications, Inc............. 6,924
91 Sprint Corp......................... 4,794
80 Texas Utilities..................... 2,769
--------
46,778
--------
Total Common Stocks 480,253
--------
U.S. TREASURY OBLIGATIONS (0.2%):
U.S. Treasury Bills (0.2%):
$ 475 7/17/97 (d)......................... 474
445 8/14/97 (d)......................... 442
--------
Total U.S. Treasury Obligations 916
--------
REPURCHASE AGREEMENTS (1.6%):
7,683 Aubrey G. Lanston & Co., 5.90%,
7/1/97 (Collateralized by $7,674
U.S. Treasury Notes, 6.25%,
8/31/00, market value-$7,996)..... 7,683
--------
Total Repurchase Agreements 7,683
--------
Total (Cost--$412,230) (a) $488,852
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $488,660.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $8. Cost for federal income tax purposes differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $80,161
Unrealized depreciation.................................................. (3,547)
-------
Net unrealized appreciation.............................................. $76,614
=======
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
(d) Serves as collateral for futures contracts.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- ---------- --------------------------------- --------- -------
<C> <S> <C> <C>
Long S&P 500 September 1997
18 Futures $7,680 $8,012
</TABLE>
See notes to financial statements.
38
<PAGE> 41
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
LARGE COMPANY VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<S> <C> <C>
COMMON STOCKS (93.5%):
Business Equipment & Services (0.8%):
180 Browning-Ferris Industries, Inc.
(c)............................... $ 5,985
--------
Capital Goods (2.5%):
100 Case Corp........................... 6,888
100 Ingersoll Rand Co................... 6,175
200 Westinghouse Electric Corp.......... 4,625
--------
17,688
--------
Consumer Durable (3.5%):
50 Autozone, Inc. (b).................. 1,178
250 Chrysler Corp....................... 8,203
275 General Motors Corp................. 15,314
--------
24,695
--------
Consumer Non-Durable (5.8%):
200 American Greetings Corp., Class A... 7,425
100 Archer-Daniels-Midland Co........... 2,350
115 Ball Corp........................... 3,457
50 IBP, Inc. (c)....................... 1,163
497 RJR Nabisco Holdings Corp........... 16,414
300 Supervalu, Inc...................... 10,350
--------
41,159
--------
Consumer Services (0.8%):
195 Viacom, Inc., Class A (b)........... 5,789
--------
Energy (18.7%):
100 Amoco Corp.......................... 8,694
50 Ashland, Inc........................ 2,319
330 Atlantic Richfield Co............... 23,265
50 Chevron Corp. (c)................... 3,697
100 Dresser Industries, Inc. (c)........ 3,725
500 Exxon Corp.......................... 30,748
262 Mobil Corp.......................... 18,307
456 Royal Dutch Petroleum Co. (c)....... 24,795
100 Tenneco, Inc........................ 4,519
440 USX-Marathon Group.................. 12,705
--------
132,774
--------
Financial Services (24.6%):
170 Allstate Corp....................... 12,410
239 BankAmerica Corp. (c)............... 15,430
56 Bankboston Corp..................... 4,021
60 Chase Manhattan Corp................ 5,824
63 Cigna Corp.......................... 11,094
220 Federal National Mortgage Assoc..... 9,598
115 First Union Corp.................... 10,638
80 Fleet Financial Group, Inc. (c)..... 5,060
165 Great Western Financial Corp........ 8,869
130 Hartford Financial Services Group... 10,758
100 J.P. Morgan & Co., Inc.............. 10,438
104 KeyCorp (c)......................... 5,794
110 Lincoln National Corp............... 7,081
130 Mellon Bank Corp. (c)............... 5,866
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
116 Morgan Stanley Dean Witter
Discover (c)...................... $ 4,974
245 NationsBank Corp.................... 15,803
50 Pacific Century Financial Corp...... 2,313
50 Southtrust Corp..................... 2,069
50 SunTrust Banks, Inc................. 2,753
40 TransAmerica Corp................... 3,743
320 Travelers Group, Inc................ 20,176
--------
174,712
--------
Health Care (4.0%):
65 Aetna (c)........................... 6,654
50 Bard C.R., Inc...................... 1,816
100 Baxter International, Inc........... 5,225
100 Biomet, Inc. (c).................... 1,863
100 Columbia/HCA Healthcare Corp. (c)... 3,931
100 Healthsource, Inc. (b).............. 2,169
118 Pharmacia & Upjohn, Inc. (c)........ 4,083
40 St. Jude Medical Center, Inc.
(b)(c)............................ 1,560
25 United Healthcare Corp.............. 1,300
--------
28,601
--------
Multi-Industry (0.4%):
30 Loews Corp.......................... 3,004
--------
Raw Materials (3.3%):
81 Alumax, Inc. (b).................... 3,073
40 Aluminum Co. of America (c)......... 3,015
50 B. F. Goodrich Co................... 2,166
150 Cyprus Amax Minerals Co. (c)........ 3,675
31 Dow Chemical Co..................... 2,701
220 Nalco Chemical Co. (c).............. 8,497
--------
23,127
--------
Retail (2.8%):
150 Dillard Department Stores, Inc.,
Class A........................... 5,194
180 May Department Stores Co. (c)....... 8,505
50 Rite Aid Corp. (c).................. 2,494
115 Toys R Us, Inc. (b)(c).............. 4,025
--------
20,218
--------
Shelter (2.7%):
125 International Paper Co. (c)......... 6,070
150 Masco Corp. (c)..................... 6,263
127 Weyerhaeuser Co..................... 6,604
--------
18,937
--------
Technology (12.3%):
100 Applied Materials, Inc. (b)......... 7,081
19 Boeing Co. (c)...................... 1,003
335 International Business Machines..... 30,195
200 Litton Industries, Inc. (b)......... 9,663
</TABLE>
Continued
39
<PAGE> 42
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
LARGE COMPANY VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
70 Lockheed Martin Corp................ $ 7,249
50 McDonnell Douglas Corp.............. 3,425
140 Motorola, Inc....................... 10,640
100 National Semiconductor Corp. (b).... 3,063
110 Rockwell International Corp......... 6,490
100 Texas Instruments, Inc. (c)......... 8,406
--------
87,215
--------
Transportation (0.4%):
30 Burlington Northern Santa Fe
Corp. (c)......................... 2,696
--------
Utilities (10.9%):
145 American Electric Power, Inc........ 6,090
108 Bell Atlantic Corp. (c)............. 8,195
200 BellSouth Corp...................... 9,274
72 Dominion Resources, Inc. of
Virginia.......................... 2,637
280 Edison International................ 6,965
31 El Paso Natural Gas................. 1,688
139 Enron Corp. (c)..................... 5,673
100 Florida Power & Light Group, Inc.... 4,606
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities, continued:
100 General Public Utilities Corp....... $ 3,588
82 GTE Corp............................ 3,598
200 MCI Communications Corp............. 7,656
50 NYNEX Corp.......................... 2,881
112 SBC Communications, Inc............. 6,930
87 Southern Co......................... 1,903
110 Sprint Corp......................... 5,789
--------
77,473
--------
Total Common Stocks 664,073
--------
REPURCHASE AGREEMENTS (6.5%):
$46,324 Prudential Securities, 6.05%,
due 7/1/97 (collateralized by
$63,935 various U.S. Government
Securities, 5.71%-7.70%,
6/23/98-5/1/25, market
value--$47,476)................... 46,324
--------
Total Repurchase Agreements 46,324
--------
Total (Cost--$581,154) (a) $710,397
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $710,276.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $2,392. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $130,950
Unrealized depreciation.................................................. (4,099)
--------
Net unrealized appreciation.............................................. $126,851
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
See notes to financial statements.
40
<PAGE> 43
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
DISCIPLINED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (95.5%):
Business Equipment & Services (0.6%):
192 Olsten Corp......................... $ 3,732
--------
Capital Goods (5.6%):
48 Belden, Inc......................... 1,635
49 BW/IP Holdings, Inc................. 993
27 Crane Co............................ 1,141
73 Durco International, Inc............ 2,124
127 Harsco Corp......................... 5,135
153 Mark IV Industries, Inc............. 3,660
59 Medusa Corp......................... 2,245
213 Molex, Inc.......................... 7,785
87 Southdown, Inc...................... 3,795
51 Tecumseh Products Co................ 3,066
84 Teleflex, Inc....................... 2,631
--------
34,210
--------
Consumer Durable (1.3%):
116 Arvin Industries, Inc............... 3,168
55 Lear Corp. (b)...................... 2,441
40 Whirlpool Corp. (c)................. 2,183
--------
7,792
--------
Consumer Non-Durable (5.1%):
44 American Greetings Corp., Class A... 1,634
85 Dean Foods Co....................... 3,432
35 Dole Food, Inc...................... 1,496
125 Hormel Foods Corp................... 3,359
60 Intimate Brands, Inc. (c)........... 1,260
98 McCormick & Co., Inc................ 2,475
42 Newell Co........................... 1,664
30 Smithfield Foods, Inc. (b).......... 1,845
36 Sysco Corp.......................... 1,314
345 Tyson Foods, Inc., Class A.......... 6,597
110 Universal Corp...................... 3,493
81 Warnaco Group, Inc.................. 2,582
--------
31,151
--------
Consumer Services (3.5%):
32 Belo (A.H.) Corp., Series A......... 1,332
40 Callaway Golf Co. (c)............... 1,420
65 Hasbro, Inc. (c).................... 1,844
34 Houghton Mifflin Co................. 2,270
107 International Game Technologies..... 1,899
31 King World Productions, Inc. (b).... 1,085
143 MGM Grand, Inc. (b)................. 5,291
15 Washington Post Co.................. 5,970
--------
21,111
--------
Energy (2.8%):
52 Devon Energy Corp................... 1,911
163 Mapco, Inc.......................... 5,141
66 Parker & Parsley Petroleum Co.
(c)............................... 2,333
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Energy, continued:
73 Valero Energy Corp. (c)............. $ 2,657
70 Vintage Petroleum, Inc.............. 2,153
80 Weatherford Enterra, Inc. (b)....... 3,080
--------
17,275
--------
Financial Services (22.6%):
118 A.G. Edwards, Inc................... 5,089
194 Bear Stearns Co., Inc. (c).......... 6,632
33 Capmac Holdings, Inc................ 1,096
105 Central Fidelity Banks, Inc. (c).... 3,738
140 Crestar Financial Corp.............. 5,443
42 Equitable of Iowa Co................ 2,374
147 First American Bank Corp............ 6,732
180 First Security Corp................. 4,916
111 First Tennessee National Corp.
(c)............................... 5,304
95 First Virginia Banks, Inc........... 5,706
177 Firstar Corp........................ 5,553
60 Gatx Corp........................... 3,465
92 Mercantile Bancorporation (c)....... 5,589
81 Mercantile Bankshares Corp.......... 3,240
41 National City Corp.................. 2,126
151 Pacific Century Financial Corp...... 6,961
188 Paine Webber Group, Inc............. 6,580
117 PMI Group, Inc. (c)................. 7,298
164 Provident Co., Inc.................. 8,774
348 Regions Financial Corp.............. 11,005
84 Reliance Group Holdings, Inc........ 998
258 Southtrust Corp..................... 10,671
149 Summit Bancorp (c).................. 7,469
34 Transatlantic Holdings, Inc. (c).... 3,335
66 Washington Mutual, Inc. (c)......... 3,944
52 Wilmington Trust Corp............... 2,379
--------
136,417
--------
Health Care (7.8%):
48 Advanced Technology Labs, Inc.
(b)............................... 2,064
60 Bard C.R., Inc...................... 2,179
113 Bergen Brunswig Corp................ 3,157
86 Forest Laboratories, Class A (b).... 3,580
160 Genzyme Corp. (b)(c)................ 4,440
20 HBO & Co............................ 1,378
97 Healthsource, Inc. (b).............. 2,099
62 Hillenbrand Industry, Inc........... 2,945
115 McKesson Corp. (c).................. 8,914
276 Mylan Laboratories (c).............. 4,067
55 Pacificare Health (b)(c)............ 3,509
165 Vencor, Inc. (b)(c)................. 7,136
40 Watson Pharmaceutical, Inc. (b)..... 1,690
--------
47,158
--------
</TABLE>
Continued
41
<PAGE> 44
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
DISCIPLINED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Raw Materials (7.2%):
89 Albemarle Corp...................... $ 1,875
57 Allegheny Teledyne, Inc............. 1,539
91 Alumax, Inc. (b).................... 3,452
43 B. F. Goodrich Co................... 1,862
96 Crompton & Knowles Corp............. 2,136
132 Ferro Corp.......................... 4,881
23 Fuller (H. B.) Co................... 1,238
98 Hanna (M.A.) Co..................... 2,831
150 Lubrizol Corp....................... 6,289
46 Nalco Chemical Co................... 1,777
120 Olin Corp........................... 4,688
75 Schulman, Inc....................... 1,835
54 Sigma-Aldrich Corp.................. 1,893
154 Wellman, Inc........................ 2,676
129 Witco Corp.......................... 4,894
--------
43,866
--------
Retail (4.6%):
89 Apple South, Inc. (c)............... 1,350
132 Cracker Barrel...................... 3,498
138 Family Dollar Stores................ 3,747
81 Fred Meyer, Inc. (b)(c)............. 4,171
66 Hannaford Brothers Co............... 2,344
70 Just For Feet, Inc. (b)(c).......... 1,221
320 Officemax, Inc. (b)................. 4,620
96 Outback Steakhouse, Inc. (b)........ 2,322
33 Sbarro, Inc......................... 910
50 Toys R Us, Inc. (b)................. 1,750
55 Waban, Inc. (b)..................... 1,770
--------
27,703
--------
Shelter (3.0%):
82 Bowater, Inc........................ 3,793
41 Consolidated Papers, Inc............ 2,225
168 Kaufman & Broad Home Corp........... 2,951
87 P.H. Glatfelter and Co.............. 1,740
137 Pentair, Inc........................ 4,509
69 Rayonier, Inc....................... 2,894
--------
18,112
--------
Technology (8.4%):
33 Advanced Micro Devices, Inc. (b).... 1,188
97 Analog Devices, Inc. (b)(c)......... 2,578
100 Arrow Electronics, Inc. (b)......... 5,318
121 Avnet, Inc.......................... 6,929
16 Compaq Computer Corp. (b)(c)........ 1,588
44 Lattice Semiconductor Corp. (b)..... 2,486
46 Litton Industries, Inc. (b)......... 2,222
126 Octel Communications Corp. (b)...... 2,963
100 Orbital Sciences Corp. (b).......... 1,595
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
220 Quantum Corp. (b)(c)................ $ 4,483
33 Seagate Technology, Inc. (b)........ 1,161
93 Storage Technology Corp. (b)........ 4,152
81 Stratus Computer (b)................ 4,025
200 Teradyne, Inc. (b).................. 7,849
36 Thiokol Corp........................ 2,520
--------
51,057
--------
Transportation (2.0%):
53 APL Ltd............................. 1,656
100 ASA Holdings, Inc................... 2,863
137 CNF Transportation, Inc............. 4,418
31 Kansas City Southern Industries..... 2,000
57 Yellow Corp. (b).................... 1,275
--------
12,212
--------
Utilities (21.0%):
62 AES Corp. (b)....................... 4,387
119 AGL Resources....................... 2,448
266 Allegheny Power Systems, Inc........ 7,099
140 American Water Works, Inc. (c)...... 2,993
98 Brooklyn Union Gas.................. 2,817
60 Calenergy, Inc. (b)................. 2,280
170 Century Telephone Enterprises....... 5,727
96 Cincinnati Bell, Inc. (c)........... 3,024
102 Cinergy Corp........................ 3,551
251 CMS Energy Corp. (c)................ 8,849
292 Edison International................ 7,273
78 El Paso Natural Gas................. 4,290
70 Florida Power & Light Group, Inc.... 3,224
85 General Public Utilities Corp....... 3,049
99 Kansas City Power & Light........... 2,829
263 L G & E Energy Corp................. 5,798
139 MCN Corp. (c)....................... 4,257
168 Midamerican Energy Holdings Co...... 2,909
118 Montana Power Co.................... 2,731
132 National Fuel Gas Co................ 5,536
402 Nextel Communications, Inc.,
Class A (b)(c).................... 7,603
103 Nipsco Industries, Inc. (c)......... 4,255
235 Pinnacle West Capital............... 7,053
164 Public Service Co. of Colorado
(c)............................... 6,806
120 Questar Corp........................ 4,845
84 Scana Corp.......................... 2,084
75 Southwestern Public Service Co...... 2,960
260 Teco Energy, Inc. (c)............... 6,646
--------
127,323
--------
Total Common Stocks............................ 579,119
--------
</TABLE>
Continued
42
<PAGE> 45
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
DISCIPLINED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
REPURCHASE AGREEMENTS (4.8%):
29,318 Prudential Securities, 6.05%, due
7/1/97 (collateralized by $29,953
various U.S. Government
Securities, 0.00% - 9.25%,
2/15/98 - 7/15/17, market value --
$29,905).......................... $ 29,318
--------
Total Repurchase Agreements 29,318
--------
Total (Cost--$510,158) (a) $608,437
========
</TABLE>
Percentages indicated are based on net assets of $606,710.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $224. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $101,949
Unrealized depreciation.................................................. (3,894)
--------
Net unrealized appreciation.............................................. $ 98,055
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
See notes to financial statements.
43
<PAGE> 46
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- --------------------------------- ----------
<C> <S> <C>
COMMON STOCKS (98.1%):
Business Equipment & Services (1.8%):
240 Automatic Data Processing, Inc.
(c)............................ $ 11,280
35 Computer Sciences Corp. (b)...... 2,524
190 Interpublic Group Co., Inc....... 11,650
----------
25,454
----------
Capital Goods (9.2%):
340 Emerson Electric Co.............. 18,721
40 Fluor Corp....................... 2,208
1,100 General Electric Co.............. 71,912
85 Honeywell, Inc................... 6,449
100 Illinois Tool Works.............. 4,994
150 Ingersoll Rand Co................ 9,263
187 Molex, Inc. (c).................. 6,844
50 Thermo Electron Corp. (b)(c)..... 1,700
105 Tyco International, Ltd. (c)..... 7,304
----------
129,395
----------
Consumer Durable (0.2%):
105 Autozone, Inc. (b)............... 2,474
----------
Consumer Non-Durable (20.6%):
220 Anheuser Busch Co., Inc. (c)..... 9,226
745 Coca Cola Co..................... 51,976
270 Colgate Palmolive Co. (c)........ 17,618
95 CPC International................ 8,770
135 Eastman Kodak Co................. 10,361
195 Gillette Co...................... 18,533
410 H.J. Heinz Co.................... 18,911
50 Hershey Foods Corp............... 2,766
30 International Flavors &
Fragrances, Inc................ 1,515
80 Newell Co........................ 3,170
100 Nike, Inc., Class B (c).......... 5,838
690 PepsiCo, Inc..................... 25,918
1,020 Philip Morris Co., Inc........... 45,263
70 Pioneer Hi-Bred International,
Inc............................ 5,600
250 Proctor & Gamble Co.............. 35,313
25 Quaker Oats Co................... 1,122
250 Sara Lee, Corp................... 10,406
175 Sysco Corp....................... 6,388
50 Unilever N V..................... 10,703
----------
289,397
----------
Consumer Services (5.9%):
20 Comcast Corp., Class A........... 428
170 CUC International, Inc. (b)(c)... 4,388
160 Gannett, Inc..................... 15,800
180 Hilton Hotels Corp............... 4,781
175 Mattel, Inc. (c)................. 5,928
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- --------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Services, continued:
270 McGraw-Hill Co., Inc............. $ 15,879
305 Time Warner, Inc................. 14,716
250 Walt Disney Co................... 20,063
----------
81,983
----------
Energy (1.7%):
50 Halliburton Co................... 3,963
20 Mobil Corp....................... 1,398
90 Schlumberger Ltd................. 11,249
100 Union Pacific Resources Group,
Inc............................ 2,488
105 Unocal Corp...................... 4,075
----------
23,173
----------
Financial Services (6.8%):
125 American Express Co.............. 9,313
175 American International Group,
Inc............................ 26,139
40 Charles Schwab Corp.............. 1,628
185 Chase Manhattan Corp............. 17,957
490 Federal National Mortgage
Assoc.......................... 21,376
60 First Union Corp................. 5,550
40 J.P. Morgan & Co., Inc........... 4,175
50 Marsh & McLennan Co.............. 3,569
90 U.S. Bancorp..................... 5,771
----------
95,478
----------
Health Care (19.5%):
365 Abbott Labs...................... 24,364
305 Alza Corp. (b)(c)................ 8,826
160 American Home Products Co........ 12,240
140 Amgen, Inc. (b).................. 8,138
45 Baxter International, Inc........ 2,351
70 Boston Scientific Corp. (b)(c)... 4,301
360 Bristol Myers Squibb Co.......... 29,160
100 Cardinal Health, Inc. (c)........ 5,725
95 Columbia/HCA Healthcare Corp.
(c)............................ 3,735
240 Elan Corp., PLC (b)(c)........... 10,860
220 Eli Lilly & Co................... 24,049
10 Guidant Corp..................... 850
100 Healthsouth Corp. (b)(c)......... 2,494
395 Johnson & Johnson (c)............ 25,428
135 Medtronic, Inc................... 10,935
470 Merck & Co., Inc................. 48,643
235 Pfizer, Inc...................... 28,083
230 Schering Plough Corp............. 11,011
100 Warner Lambert Co................ 12,425
----------
273,618
----------
Multi-Industry (1.6%):
60 Allied Signal, Inc. (c).......... 5,040
165 Minnesota Mining & Manufacturing
Co............................. 16,830
----------
21,870
----------
</TABLE>
Continued
44
<PAGE> 47
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULEOF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- --------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Raw Materials (4.1%):
85 Air Products & Chemical, Inc..... $ 6,906
375 Du Pont (EI) de Nemours & Co..... 23,578
240 Monsanto Co...................... 10,335
225 Nalco Chemical Co................ 8,691
340 Pall Corp. (c)................... 7,905
----------
57,415
----------
Retail (5.6%):
60 Dayton Hudson Corp. (c).......... 3,191
140 Gap, Inc. (c).................... 5,443
210 Home Depot, Inc.................. 14,477
175 Kroger Co. (b)................... 5,075
30 May Department Stores Co......... 1,418
290 McDonald's Corp.................. 14,011
890 Wal-Mart Stores, Inc............. 30,092
90 Walgreen Co...................... 4,826
----------
78,533
----------
Shelter (1.3%):
360 Kimberly Clark Corp.............. 17,910
----------
Technology (16.2%):
15 3Com Corp. (b)(c)................ 675
40 Applied Materials, Inc. (b)...... 2,833
70 Cabletron Systems, Inc. (b)...... 1,982
330 Cisco Systems, Inc. (b).......... 22,151
110 Compaq Computer Corp.(b)(c)...... 10,918
95 Computer Associates
International, Inc............. 5,290
70 Dell Computer Corp. (b).......... 8,221
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- --------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
390 Hewlett Packard Co............... $ 21,840
313 Intel Corp....................... 44,387
80 International Business
Machines....................... 7,215
250 Lucent Technologies, Inc......... 18,016
480 Microsoft Corp. (b).............. 60,659
75 Northern Telecom, Ltd............ 6,825
200 Oracle Corp. (b)................. 10,075
45 Parametric Technology Corp.
(b)............................ 1,915
40 Texas Instruments, Inc........... 3,363
----------
226,365
----------
Utilities (3.6%):
25 Enron Corp. (c).................. 1,020
370 GTE Corp......................... 16,234
350 SBC Communications, Inc.......... 21,656
380 WorldCom, Inc. (b)............... 12,160
----------
51,070
----------
Total Common Stocks 1,374,135
----------
REPURCHASE AGREEMENTS (2.0%):
$ 28,027 Prudential Securities, 6.05%, due
7/1/97 (collateralized by
$28,883 various U.S. Government
Securities, 0.00%-5.75%,
9/25/97-10/31/00, market value
-- $28,588).................... 28,027
Total Repurchase Agreements 28,027
----------
Total (Cost--$953,962) (a) $1,402,162
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $1,401,042.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $700. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $450,466
Unrealized depreciation.................................................. (2,966)
--------
Net unrealized appreciation.............................................. $447,500
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
See notes to financial statements.
45
<PAGE> 48
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
GROWTH OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (93.4%):
Business Equipment & Services (13.9%):
134 America Online, Inc. (b)............ $ 7,426
112 Cintas Corp......................... 7,714
227 Equifax, Inc........................ 8,427
58 Fiserv, Inc. (b).................... 2,579
71 Gtech Holdings Corp. (b)............ 2,299
115 Herman Miller, Inc.................. 4,126
27 HNC Software, Inc. (b)(c)........... 1,014
0 Imnet Systems, Inc. (b)(c)(d)....... 3
172 Manpower, Inc....................... 7,667
278 Office Depot, Inc. (b).............. 5,408
141 Omnicom Group, Inc.................. 8,714
235 Paychex, Inc. (c)................... 8,938
128 Reynolds & Reynolds Co.............. 2,011
317 Staples, Inc. (b)(c)................ 7,375
108 Sterling Commerce, Inc. (b)......... 3,558
114 Sungard Data Systems, Inc. (b)(c)... 5,292
268 U.S.A. Waste Services, Inc.
(b)(c)............................ 10,343
81 Wallace Computer Services........... 2,438
114 World Access, Inc. (b).............. 2,337
--------
97,669
--------
Capital Goods (4.0%):
108 Diebold, Inc........................ 4,203
43 Federal Signal Corp................. 1,088
93 Hubbell, Inc., Class B.............. 4,101
33 Precision Castparts Co.............. 1,974
100 Sundstrand Corp..................... 5,581
277 United States Filter Corp. (b)(c)... 7,551
75 York International Corp............. 3,445
--------
27,943
--------
Consumer Durable (1.8%):
111 Danaher Corp. (c)................... 5,620
142 Harley-Davidson, Inc. (c)........... 6,793
--------
12,413
--------
Consumer Non-Durable (7.6%):
691 Coca-Cola Enterprises (c)........... 15,883
95 Dial Corp........................... 1,484
75 Dole Food, Inc. (c)................. 3,211
394 Flowers Industries, Inc............. 6,621
4 General Cigar Holdings, Inc.
(b)(c)............................ 112
83 Interstate Bakeries Co. (c)......... 4,899
105 Intimate Brands, Inc. (c)........... 2,203
92 Jones Apparel Group, Inc. (b)....... 4,383
41 Lancaster Colony Corp............... 1,998
100 McCormick & Co., Inc................ 2,533
1 Nike, Inc., Class B................. 82
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Non-Durable, continued:
68 Nine West Group, Inc. (b)(c)........ $ 2,601
72 Payless Shoesource, Inc. (b)........ 3,948
95 Unifi, Inc.......................... 3,562
--------
53,520
--------
Consumer Services (3.5%):
52 Belo (A.H.) Corp., Series A......... 2,169
142 Callaway Golf Co. (c)............... 5,027
96 Hasbro, Inc. (c).................... 2,735
236 International Game Technologies..... 4,193
341 Mirage Resorts, Inc. (b)(c)......... 8,619
48 Promus Hotel Corp. (b).............. 1,868
--------
24,611
--------
Energy (8.2%):
108 Anadarko Petroleum Corp............. 6,498
151 Apache Corp. (c).................... 4,891
73 BJ Services Co.(b)(c)............... 3,931
99 Ensco International, Inc. (b)(c).... 5,212
261 Global Marine, Inc. (b)(c).......... 6,057
115 Nabors Industries, Inc. (b)(c)...... 2,856
50 Noble Affiliates, Inc............... 1,915
203 Noble Drilling Corp. (b)(c)......... 4,578
71 Reading & Bates Corp. (b)........... 1,905
55 Smith International, Inc. (b)....... 3,311
38 Tidewater, Inc...................... 1,650
307 Tosco Corp.......................... 9,183
57 Transocean Offshore, Inc............ 4,140
58 Varco International, Inc. (b)....... 1,874
--------
58,001
--------
Financial Services (12.3%):
234 AFLAC, Inc.......................... 11,038
71 Capital One Financial Corp. (c)..... 2,695
69 Charles Schwab Corp. (c)............ 2,795
201 Franklin Resources, Inc. (c)........ 14,571
269 Imperial Credit Industries, Inc.
(b)............................... 5,531
199 Northern Trust Corp. (c)............ 9,607
96 Price (T. Rowe) Associates.......... 4,971
193 Progressive Corp.- Ohio............. 16,810
124 Robert Half International, Inc.
(b)(c)............................ 5,826
0 St. Paul Co., Inc. (c)(d)........... 8
50 State Street Corp................... 2,294
145 SunAmerica, Inc. (c)................ 7,049
126 The Money Store, Inc. (c)........... 3,603
--------
86,798
--------
Health Care (7.9%):
105 Allegiance Corp..................... 2,859
50 Apria Healthcare Group, Inc.
(b)(c)............................ 888
150 Biogen, Inc. (b).................... 5,088
33 Cardinal Health, Inc. (c)........... 1,866
</TABLE>
Continued
46
<PAGE> 49
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
GROWTH OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care, continued:
123 Centocor, Inc. (b).................. $ 3,811
264 Chiron Corp. (b)(c)................. 5,501
58 Dentsply International, Inc......... 2,847
88 Health Care & Retirement Corp.
(b)............................... 2,934
57 Healthcare Compare Corp. (b)(c)..... 2,959
105 Hillenbrand Industry, Inc........... 4,964
147 Oxford Health Plans, Inc. (b)....... 10,517
40 R. P. Scherer Corp. (b)............. 2,065
183 Stryker Corp. (c)................... 6,396
71 Watson Pharmaceutical, Inc. (b)..... 2,983
--------
55,678
--------
Multi-Industry (0.6%):
103 Hartford Life, Inc. (b)............. 3,859
10 Rambus, Inc. (b)(c)................. 446
--------
4,305
--------
Raw Materials (1.4%):
145 Airgas, Inc. (b)(c)................. 2,863
52 Betzdearborn, Inc................... 3,445
29 Crompton & Knowles Corp............. 643
29 Cytec Industries, Inc. (b).......... 1,080
31 Lyondell Petrochemical (c).......... 683
80 RPM, Inc. (c)....................... 1,470
--------
10,184
--------
Retail (6.5%):
82 Bed Bath & Beyond, Inc. (b)(c)...... 2,485
96 Claire's Stores, Inc................ 1,678
14 CompUSA, Inc. (b)(c)................ 310
169 Consolidated Stores Co. (b)......... 5,885
260 Dollar General Corp................. 9,767
691 Just For Feet, Inc. (b)(c).......... 12,053
92 Kohl's Corp. (b).................... 4,854
60 Lands End, Inc. (b)................. 1,778
76 Outback Steakhouse, Inc. (b)........ 1,846
67 Starbucks Corp. (b)(c).............. 2,589
18 Sunglass Hut International, Inc.
(b)(c)............................ 112
57 Tiffany & Co........................ 2,633
--------
45,990
--------
Shelter (2.8%):
45 Hon Industries...................... 1,991
170 Leggett & Platt, Inc................ 7,327
71 Redwood Trust, Inc. (c)............. 3,315
81 Sealed Air Corp. (b)................ 3,829
215 Sunstone Hotel Investors, Inc....... 3,116
--------
19,578
--------
Technology (19.2%):
262 3Com Corp. (b)...................... 11,781
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
160 ADC Telecommunications, Inc. (b).... $ 5,343
207 Advanced Fibre Communication
(b)(c)............................ 12,474
133 Advanced Micro Devices, Inc. (b).... 4,770
199 Altera Corp. (b)(c)................. 10,039
83 American Power Conversion (b)....... 1,583
109 Analog Devices, Inc. (b)(c)......... 2,883
19 Applied Materials, Inc. (b)......... 1,353
262 Ascend Communications, Inc.
(b)(c)............................ 10,312
193 Atmel Corp. (b)(c).................. 5,393
195 BMC Software, Inc. (b).............. 10,776
197 Cadence Design Systems, Inc.
(b)(c)............................ 6,613
50 Cascade Communications Corp. (b).... 1,378
185 Compuware Corp. (b)................. 8,815
29 Dell Computer Corp. (b)............. 3,441
89 Electronic Arts, Inc. (b)........... 2,989
31 Hewlett Packard Co.................. 1,708
288 Informix Corp. (b).................. 2,592
47 Integrated Device Technology, Inc.
(b)............................... 494
9 KLA-Tencor Corp. (b)................ 453
72 Linear Technology Corp.............. 3,710
59 Maxim Integrated Products, Inc.
(b)............................... 3,373
70 Solectron Corp. (b)................. 4,900
63 Structural Dynamics (b)............. 1,649
24 Symbol Technologies, Inc. (b)(c).... 800
229 Teradyne, Inc. (b).................. 8,996
43 Varian Associates, Inc.............. 2,338
101 Xilinx, Inc. (b)(c)................. 4,936
--------
135,892
--------
Transportation (0.6%):
117 Illinois Central Corp............... 4,077
--------
Utilities (3.1%):
219 360 Communications Co. (b).......... 3,749
201 AES Corp. (b)(c).................... 14,199
29 LCI International, Inc. (b)......... 632
115 Seagull Energy Corp. (b)............ 2,014
35 Southern New England
Telecommunications, Inc........... 1,353
--------
21,947
--------
Total Common Stocks 658,606
--------
PREFERRED STOCKS (1.3%):
Financial Services (0.1%):
38 Arm Financial Group, Inc., Class A
(c)............................... 760
--------
Oil & Gas Exploration (0.4%):
81 Sante Fe International Corp......... 2,754
--------
Retail (0.7%):
169 Polo Ralph Lauren Corp.............. 4,626
--------
</TABLE>
Continued
47
<PAGE> 50
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
GROWTH OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
Technology (0.1%):
15 Aris Corp........................... $ 317
20 Great Plains Software, Inc. (c)..... 527
--------
844
--------
Total Preferred Stocks 8,984
--------
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
REPURCHASE AGREEMENTS (5.6%):
$39,449 Prudential Securities, 6.05%, 7/1/97
(Collateralized by $49,148 various
U.S. Government Securities,
5.75%-6.01%, 10/31/00-8/1/34,
market value--$40,519)............ $ 39,449
--------
Total Repurchase Agreements 39,449
--------
Total (Cost--$611,506) (a) $707,039
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $704,690.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $3,969. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $103,914
Unrealized depreciation.................................................. (12,350)
--------
Net unrealized appreciation.............................................. $ 91,564
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
(d) Amount less than 1,000.
See notes to financial statements.
48
<PAGE> 51
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
GULF SOUTH GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (95.3%):
Business Equipment & Services (11.9%):
25 Accustaff, Inc. (b) (c).............. $ 592
50 Acxiom Corp. (b) (c)................. 1,025
25 Billing Information Concepts (b)..... 872
15 Central Parking Corp................. 522
100 Communications Central, Inc. (b)..... 1,100
15 Computational Systems, Inc. (b)...... 208
45 Concord EFS, Inc. (b)................ 1,164
30 Corrections Corp. of America (b)
(c)................................ 1,193
30 Imnet Systems, Inc. (b) (c).......... 932
20 Norrell Corp......................... 660
30 Nova Corp. (b)....................... 778
35 Stewart Enterprises, Inc., Class A... 1,470
10 Stone & Webster, Inc................. 427
45 World Access, Inc. (b)............... 923
-------
11,866
-------
Capital Goods (3.3%):
20 Blount International, Inc............ 851
15 Ionics, Inc. (b)..................... 683
13 Kent Electronics Corp. (b)........... 477
25 Kuhlman Corp......................... 806
15 Wabash National Corp................. 418
-------
3,235
-------
Commercial Services (0.2%):
10 Pierce Leahy Corp. (b)............... 180
-------
Consumer Durable (1.2%):
75 Miller Industries, Inc. (b).......... 1,200
-------
Consumer Non-Durable (6.9%):
15 Coca-Cola Bottling Co................ 728
20 Dekalb Genetics Corp................. 1,594
6 Earthgrains Co....................... 393
38 K & G Men's Center, Inc. (b)......... 816
15 Nautica Enterprises, Inc. (b)........ 397
12 Richfood Holdings.................... 312
12 Smithfield Foods, Inc. (b)........... 738
24 Westpoint Stevens, Inc. (b).......... 939
30 Wolverine World Wide, Inc............ 911
-------
6,828
-------
Consumer Services (4.4%):
30 Action Performance Co., Inc. (b)..... 728
22 Grand Casinos (b).................... 325
35 International Family Entertainment,
Class B (b)........................ 1,202
25 International Speedway Corp. (b)
(c)................................ 491
15 Regal Cinemas, Inc. (b).............. 495
30 Sturm, Ruger & Co.................... 589
25 Suburban Lodges of America (b)....... 525
-------
4,355
-------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Energy (9.0%):
10 Devon Energy Corp.................... $ 368
6 Diamond Offshore Drilling (b)........ 467
10 Falcon Drilling Co., Inc. (b)........ 576
15 Global Industries Ltd. (b)........... 350
33 Maverick Tube Corp. (b).............. 1,218
36 Newpark Resources, Inc. (b).......... 1,215
10 Ocean Energy, Inc. (b)............... 463
20 Patterson Energy, Inc. (b)........... 908
30 Pride Petroleum Services, Inc. (b)... 720
7 Saint Mary Land and Exploration...... 246
5 Seacor Holdings, Inc. (b) (c)........ 235
10 Snyder Oil Corp...................... 184
32 Stone Energy Corp. (b)............... 876
25 Trico Marine Services, Inc. (b)...... 545
20 United Meridian Corp. (b)............ 600
-------
8,971
-------
Financial Services (16.6%):
50 Alabama National Bankcorp............ 1,119
50 Amresco, Inc. (b).................... 1,075
50 Bankunited Financial Corp. (b)....... 494
7 Cenit Bancorp, Inc................... 341
25 Central Fidelity Banks, Inc.......... 888
16 Charter One Financial, Inc. (c)...... 862
20 Colonial BancGroup, Inc.............. 485
26 Cooperative Bankshares, Inc. (b)..... 546
23 Cullen/Frost Bankers, Inc............ 975
22 Deposit Guaranty Corp................ 693
30 Eagle Bancshares, Inc................ 536
30 First American Corp.................. 1,151
40 First Financial Holdings, Inc........ 1,280
20 First Liberty Financial Corp......... 430
25 Protective Life Corp................. 1,256
15 Raymond James Financial (b).......... 411
35 Sirrom Capital Corp.................. 1,208
38 Triad Guaranty, Inc. (b)............. 1,699
15 United Cos. Financial Corp. (c)...... 394
18 Whitney Holding Corp................. 761
-------
16,604
-------
Health Care (9.6%):
20 Alpharma, Inc........................ 319
9 Ballard Medical Products............. 181
20 Core Laboratories N.V. (b)........... 520
30 Cryolife, Inc. (b)................... 358
6 Envoy Corp. (b) (c).................. 200
18 Genesis Health (b) (c)............... 608
20 Gulf South Medical Supply (b)........ 390
15 Invacare Corp........................ 351
7 Mentor Corp.......................... 216
22 Neoprobe Corp. (b)................... 308
10 North American Vaccine, Inc. (b)
(c)................................ 193
</TABLE>
Continued
49
<PAGE> 52
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
GULF SOUTH GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care, continued:
40 Omnicare, Inc........................ $ 1,253
30 Phycor, Inc. (b) (c)................. 1,033
9 Protein Design Labs, Inc. (b)........ 257
10 Quorum Health Group, Inc. (b)........ 358
24 Roberts Pharmaceutical Corp. (b)..... 269
9 Safeskin Corp. (b)................... 265
10 Spine-Tech, Inc. (b)................. 371
11 Steris Corp. (b)..................... 392
40 Summit Technology, Inc. (b).......... 265
12 Sunrise Assisted Living (b).......... 420
14 Sybron International Corp. (b)....... 558
8 Tecnol Medical Products (b).......... 178
8 Vertex Pharmaceuticals, Inc. (b)..... 306
-------
9,569
-------
Raw Materials (2.6%):
25 Chemfirst, Inc....................... 678
20 Coeur D'Alene Mines Corp. (b)........ 259
10 Cytec Industries, Inc. (b)........... 374
8 Mississippi Chemical Corp............ 173
35 Quanex Corp.......................... 1,074
-------
2,558
-------
Retail (6.6%):
37 Compucom Systems, Inc. (b)........... 264
35 CompUSA, Inc. (b) (c)................ 750
20 Gymboree Corp. (b)................... 480
30 Heilig Meyers Co..................... 589
30 Hibbet Sporting Goods, Inc. (b)...... 540
40 Just For Feet, Inc. (b).............. 698
20 Landry's Seafood Restaurants, Inc.
(b)................................ 460
30 Michaels Stores, Inc. (b) (c)........ 636
7 O'Reilly Automotive, Inc. (b)........ 270
20 Pier 1 Imports, Inc.................. 530
12 Proffitts, Inc. (b) (c).............. 527
15 Ruby Tuesday, Inc. (b)............... 337
15 Stein Mart, Inc. (b)................. 450
-------
6,531
-------
Shelter (2.5%):
24 Caraustar Industries, Inc............ 831
15 Ethan Allen Interiors, Inc........... 855
20 Oakwood Homes Corp................... 480
35 Southern Energy Homes, Inc. (b)...... 319
-------
2,485
-------
Technology (15.9%):
30 Aspect Telecommunications, Inc.
(b)................................ 668
25 Benchmark Electronics, Inc. (b)...... 1,008
20 Cadence Design Systems, Inc. (b)
(c)................................ 670
20 Comverse Technology, Inc. (b) (c).... 1,014
30 Datastream Systems, Inc. (b)......... 465
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
4 Dell Computer Corp. (b).............. $ 411
24 Digital Microwave Corp. (b).......... 720
40 Harbinger Corp. (b).................. 1,120
25 Intercel, Inc. (b)................... 344
14 Kemet Corp. (b)...................... 348
17 Komag, Inc. (b)...................... 270
11 Kulicke & Soffa Industries (b)....... 357
10 Lattice Semiconductor Corp. (b)...... 565
14 Microchip Technology, Inc. (b)....... 417
15 Network General Corp. (b)............ 223
60 Network Long Distance, Inc. (b)...... 563
7 Novellus Systems, Inc. (b)........... 606
13 Oak Industries (b)................... 374
17 Read-Rite Corp. (b).................. 355
15 Sanmina Corp. (b) (c)................ 953
12 SCI Systems, Inc. (b) (c)............ 765
13 Sterling Software (b)................ 406
20 Symmetricom, Inc. (b)................ 288
46 Tech Data Corp. (b).................. 1,444
25 Teradyne, Inc. (b)................... 981
22 VLSI Technology, Inc. (b)............ 520
-------
15,855
-------
Transportation (2.4%):
20 ASA Holdings, Inc.................... 573
25 Halter Marine Group, Inc. (b)........ 600
25 Heartland Express, Inc. (b).......... 588
25 MS Carriers, Inc. (b)................ 627
-------
2,388
-------
Utilities (2.2%):
13 K N Energy, Inc...................... 548
50 LCI International, Inc. (b).......... 1,094
20 Rural Cellular Corp. Class A (b)..... 206
25 Southwestern Energy Co............... 325
-------
2,173
-------
Total Common Stocks 94,798
-------
PREFERRED STOCKS (2.6%):
Computer Software (0.3%):
8 National Data Corp................... 347
-------
Financial Services (1.7%):
20 CCB Financial Corp. (c).............. 1,461
5 Southwest Securities Group, Inc...... 98
-------
1,559
-------
Oil & Gas Exploration (0.5%):
50 Comstock Resources, Inc.............. 522
-------
</TABLE>
Continued
50
<PAGE> 53
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
GULF SOUTH GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- -------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
Telecommunications (0.1%):
7 Gray Communications Systems, Inc.
Class B............................ $ 142
-------
Total Preferred Stocks 2,570
-------
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- -------
REPURCHASE AGREEMENTS (2.6%):
2,589 Prudential Securities, 6.05%, due
7/1/97 (collateralized by $2,557
U.S. Treasury Note, 6.88%, 5/15/06,
market value -- $2,641)............ $ 2,589
-------
Total Repurchase Agreements 2,589
-------
Total (Cost--$75,832) (a) $99,957
=======
</TABLE>
- ------------
Percentages indicated are based on net assets of $99,452
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $25,837
Unrealized depreciation.................................................. (1,712)
-------
Net unrealized appreciation.............................................. $24,125
=======
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1997.
See notes to financial statements.
51
<PAGE> 54
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (96.9%):
ARGENTINA (0.7%):
Automotive (0.0%):
29 CIADEA SA........................... $ 126
--------
Beverages & Tobacco (0.0%):
0 Buenos Aires Embottelladora SA,
Class B (b)(d).................... 27
--------
Oil & Gas Exploration, Production & Services (0.4%):
117 Perez Companc SA.................... 931
33 YPF Sociedad Anonima................ 999
--------
1,930
--------
Telecommunications (0.3%):
89 Telecom Argentina SA, Class B....... 463
215 Telefonica de Argentina SA, Class
B................................. 742
--------
1,205
--------
Total Argentina..................... 3,288
--------
AUSTRALIA (2.1%):
Banking (0.5%):
120 National Australia Bank Ltd......... 1,703
171 Westpac Banking Corp., Ltd.......... 1,020
--------
2,723
--------
Broadcasting & Publishing (0.2%):
157 News Corp., Ltd..................... 745
--------
Building Products (0.4%):
221 Boral Ltd........................... 689
135 CSR Ltd............................. 520
131 Pioneer International Ltd........... 503
--------
1,712
--------
Diversified (0.1%):
82 Southcorp Holdings Ltd.............. 305
--------
Metals (0.1%):
229 M.I.M. Holdings Ltd................. 336
36 RGC Ltd............................. 130
--------
466
--------
Metals & Mining (0.4%):
68 Aberfoyle Ltd....................... 189
111 Aud Normandy Mining Ltd............. 124
105 Broken Hill Proprietary Co. Ltd..... 1,525
35 Newcrest Mining Ltd................. 95
79 WMC Ltd............................. 497
--------
2,430
--------
Real Estate (0.3%):
186 General Property Trust.............. 369
177 Stockland Trust Group............... 462
186 Westfield Trust..................... 379
--------
1,210
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
AUSTRALIA, CONTINUED:
Retail Stores/Catalog (0.1%):
102 Coles Myer Ltd...................... $ 527
--------
Total Australia..................... 10,118
--------
AUSTRIA (1.2%):
Airlines (0.1%):
2 Austrian Airlines/Oesterreichische
Luftverskehrs AG (b).............. 347
--------
Automotive (0.0%):
7 Steyr-Daimler-Puch AG............... 139
--------
Banking & Financial Services (0.2%):
15 Ats Bank Of Austria Rights (d)...... 0
15 Bank Austria AG..................... 834
2 Bank Austria AG, Participating
Certificates...................... 63
8 Creditanstalt-Bankverein............ 479
--------
1,376
--------
Beverages & Tobacco (0.0%):
4 Osterreichische Brau-Beteiligungs
AG................................ 234
--------
Building Products (0.1%):
2 Wienerberger Baustoffindustrie AG... 488
--------
Chemicals (0.1%):
4 Lenzing AG (b)...................... 238
--------
Environmental Services (0.1%):
2 BWT AG.............................. 279
--------
Insurance (0.2%):
3 EA-Generali AG...................... 750
--------
Miscellaneous Manufacturing (0.1%):
9 Radex-Heraklith
Industriebeteiligungs AG.......... 379
--------
Oil & Gas Exploration, Production & Services (0.2%):
7 OMV AG.............................. 947
--------
Utilities--Electric & Gas (0.1%):
7 Osterreichische
Elekrizitaitswirtschafts-AG, Class
A................................. 518
--------
Total Austria....................... 5,695
--------
BELGIUM (1.8%):
Banking (0.3%):
1 Generale de Banque SA............... 568
1 Kredietbank NV...................... 377
1 Kredietbank VVPR.................... 514
--------
1,459
--------
Chemicals (0.2%):
1 Solvay SA........................... 798
--------
Industrial Holding Companies (0.1%):
4 Groupe Bruxelles Lambert SA......... 691
--------
</TABLE>
Continued
52
<PAGE> 55
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
BELGIUM, CONTINUED:
Insurance (0.3%):
4 Fortis AG........................... $ 742
2 Royale Belge........................ 549
--------
1,291
--------
Merchandising (0.2%):
18 Delhaize-Le Lion SA................. 949
--------
Metals & Mining (0.1%):
3 Union Miniere Group (b)............. 280
--------
Oil & Gas Exploration, Production & Services (0.2%):
2 PetroFina SA........................ 847
--------
Utilities--Electric & Gas (0.4%):
9 Electrabel SA....................... 1,978
--------
Total Belgium....................... 8,293
--------
BRAZIL (0.3%):
Beverages & Tobacco (0.0%):
41 Companhia Cervejaria Brahma......... 31
--------
Chemicals (0.0%):
242 Copesul--Companhia Pertoquimica do
Sul............................... 9
19 White Martins SA.................... 56
--------
65
--------
Glass Products (0.0%):
5 Companhia Vidraria Santa Maria...... 14
--------
Steel (0.0%):
3,589 Companhia Siderurgica Nacional...... 118
4 Companhia Vale do Rio Doce.......... 88
--------
206
--------
Telecommunications (0.1%):
2,277 Telecomunicacoes Brasileiras SA..... 308
193 Telecomunicacoes de Sao Paulo SA.... 57
--------
365
--------
Tobacco (0.0%):
10 Souza Cruz SA....................... 105
--------
Utilities--Electric & Gas (0.2%):
655 Centrais Electricas Brasilieras
SA................................ 367
307 Centrais Electricas Brasilieras SA,
Class B........................... 182
3,516 Companhia Paranaense de
Energia-Copel..................... 62
355 Light--Servicos de Eletricidade
SA................................ 171
--------
782
--------
Total Brazil........................ 1,568
--------
CHILE (0.2%):
Banking & Financial Services (0.0%):
6 Banco De Santiago................... 150
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
CHILE, CONTINUED:
Beverages & Tobacco (0.0%):
7 Embotelladora Andina SA,
Series A, ADR..................... $ 147
--------
Telecommunications (0.2%):
18 Telecomunicaciones
De Chile SA ADR................... 585
--------
Total Chile......................... 882
--------
DENMARK (1.5%):
Agriculture (0.0%):
3 Korn-OG Foderstof Kompagniet A/S.... 80
--------
Banking & Financial Services (0.2%):
7 Den Danske Bank..................... 653
6 Unidanmark A/S, Class A............. 315
--------
968
--------
Beverages & Tobacco (0.1%):
4 Carlsberg A/S, Class A.............. 195
7 Carlsberg A/S, Class B.............. 403
--------
598
--------
Commercial Services (0.0%):
3 ISS International Service System
A/S, Class B...................... 102
--------
Diversified (0.1%):
14 Superfos A/S........................ 338
--------
Engineering (0.1%):
11 FLS Industries A/S, Class B......... 382
--------
Pharmaceuticals (0.7%):
26 Novo Nordisk A/S, Class B........... 2,839
--------
Telecommunications (0.1%):
13 Tele Danmark A/S, Class B........... 658
--------
Transportation & Shipping (0.2%):
0 D/S 1912, Class B (d)............... 466
0 D/S Svendborg A/S, Class B (d)...... 465
0 Lauritzen (J.) Holding A/S (b)(d)... 30
--------
961
--------
Total Denmark....................... 6,926
--------
FINLAND (1.1%):
Banking & Financial Services (0.1%):
131 Merita Ltd., Class A................ 435
--------
Forest Products (0.1%):
1 Rauma Oy............................ 14
27 UPM-Kymmene Corp.................... 628
--------
642
--------
</TABLE>
Continued
53
<PAGE> 56
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FINLAND, CONTINUED:
Insurance (0.1%):
11 Pohjola Insurance Group, Class B.... $ 311
3 Sampo Insurance Co. Ltd., Class A... 311
--------
622
--------
Metals (0.1%):
27 Outokumpo OY, Class A............... 525
--------
Telecommunications (0.7%):
25 Nokia AB, Class A................... 1,839
14 Nokia AB, Class K................... 1,013
--------
2,852
--------
Total Finland....................... 5,076
--------
FRANCE (10.3%):
Automotive (0.1%):
6 PSA Peugeot......................... 595
--------
Banking (0.9%):
24 Banque Nationale de Paris........... 974
19 Compagnie Financiere de Paribas..... 1,299
399 Ffr Cie De Suez Corp................ 982
10 Societe Generale.................... 1,137
--------
4,392
--------
Beverages & Tobacco (0.6%):
10 LVMH (Moet Hennessy
Louis Vuitton).................... 2,568
8 Pernod Ricard....................... 419
--------
2,987
--------
Broadcasting/Cable (0.1%):
3 Canal Plus.......................... 594
--------
Building Products (0.3%):
3 Imetal SA........................... 378
20 Lafarge SA.......................... 1,221
--------
1,599
--------
Business Services (0.6%):
17 Compagnie Generale des Eaux......... 2,148
8 Havas SA............................ 598
--------
2,746
--------
Chemicals (0.7%):
10 L'Air Liquide....................... 1,538
38 Rhone-Poulenc SA.................... 1,559
--------
3,097
--------
Commercial Services (0.3%):
1 Addeco SA........................... 573
1 Sodexho SA.......................... 667
--------
1,240
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FRANCE, CONTINUED:
Construction (0.1%):
5 Bouygues............................ $ 379
--------
Defense (0.2%):
1 Sagem SA............................ 330
22 Thomson CSF......................... 574
--------
904
--------
Diversified (0.1%):
14 Lagardere SCA....................... 397
--------
Electrical & Electronic (0.8%):
17 Alcatel Alsthom..................... 2,190
5 Legrand SA.......................... 837
17 Schneider SA........................ 900
--------
3,927
--------
Energy (1.4%):
32 Elf Aquitane SA..................... 3,429
28 Total SA, Class B................... 2,853
--------
6,282
--------
Engineering (0.1%):
4 Compagnie Francaise d'Etudes et de
Construction Technip.............. 436
--------
Food & Household Products (0.1%):
4 Eridania Beghin-Say SA.............. 667
--------
Food Products & Services (0.3%):
8 Groupe Danone....................... 1,257
--------
Health & Personal Care (0.8%):
6 L'OREAL............................. 2,634
12 Sanofi SA........................... 1,129
--------
3,763
--------
Industrial Goods & Services (0.2%):
18 Michelin Class B, Registered........ 1,061
--------
Industrial Holding Companies (0.2%):
12 Lyonnaise des Eaux SA............... 1,180
--------
Insurance (0.4%):
34 AXA SA.............................. 2,104
--------
Leisure (0.2%):
4 Accor SA............................ 652
3 Salomon SA.......................... 191
--------
843
--------
Manufacturing-Consumer Goods (0.2%):
6 Societe BIC SA...................... 982
--------
Media (0.1%):
1 Pathe SA............................ 286
--------
</TABLE>
Continued
54
<PAGE> 57
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FRANCE, CONTINUED:
Merchandising (1.2%):
4 Carrefour SA........................ $ 3,070
7 Etablissements Economiques du Casino
Guichard-Perrachon................ 364
3 Pinault-Printemps-Redoute SA........ 1,203
2 Promodes............................ 856
--------
5,493
--------
Miscellaneous Materials & Commodities (0.3%):
10 Compagnie de Saint Gobain........... 1,452
--------
Textile Products (0.0%):
2 Dollfus-Mieg & Cie.................. 41
--------
Total France........................ 48,704
--------
GERMANY (16.2%):
Airlines (0.2%):
55 Deutsche Lufthansa AG............... 1,061
--------
Automotive (1.9%):
65 Daimler-Benz AG..................... 5,320
3 Man AG.............................. 798
4 Volkswagen AG....................... 2,898
--------
9,016
--------
Banking (2.5%):
98 Bayer AG............................ 3,785
30 Bayerische Vereinsbank AG........... 1,229
82 Deutsche Bank AG.................... 4,800
51 Dresdner Bank AG.................... 1,783
--------
11,597
--------
Banking & Financial Services (0.2%):
26 Bayerische Hypotheken-und Weschel-
Bank AG........................... 775
--------
Building Materials (0.1%):
6 Heidelberger Zement AG.............. 571
--------
Business Services (0.4%):
9 SAP AG.............................. 1,873
--------
Chemicals (1.0%):
111 BASF AG............................. 4,082
15 Degussa AG.......................... 815
--------
4,897
--------
Conglomerates (1.8%):
13 Metro AG (b)........................ 1,382
3 Preussag AG......................... 818
86 VEBA AG............................. 4,874
3 Viag AG............................. 1,550
--------
8,624
--------
Construction (0.1%):
9 Hochtief AG......................... 403
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Consumer Goods & Services (0.2%):
9 Adidas AG........................... $ 953
--------
Electrical & Electronic (1.0%):
78 Siemens AG.......................... 4,650
--------
Engineering (0.6%):
23 AGIV AG............................. 521
3 Bilfinger & Berger Bau AG........... 135
5 Mannesmann AG....................... 2,052
--------
2,708
--------
Health Care (0.3%):
15 Schering AG......................... 1,593
--------
Insurance (2.4%):
33 Allianz AG.......................... 6,977
0 AMB Aachener und Muenchener
Beteiligungs AG, Bearer Shares.... 98
1 AMB Aachener und Muenchener
Beteiligungs AG, Registered
Shares............................ 490
3 CKAG Colonia Konzern AG............. 281
0 Muenchener Rueckversicherungs
Gesellschaft AG, Bearer Shares.... 137
1 Muenchener Rueckversicherungs
Gesellschaft AG, Registered
Shares............................ 3,444
--------
11,427
--------
Machinery & Equipment (0.1%):
11 Kloeckner-Humbolt-Deutz AG (b)...... 111
1 Linde AG............................ 420
--------
531
--------
Metals & Mining (0.5%):
9 Fag Kugelfischer Georg Schaefer
AG................................ 162
8 Thyssen AG.......................... 2,031
--------
2,193
--------
Personal Care Products (0.3%):
27 Beiersdorf AG....................... 1,454
--------
Pharmaceuticals (0.3%):
29 Merck KGaA.......................... 1,260
--------
Retail Stores (0.1%):
1 Karstadt AG......................... 307
--------
Retail-General Merchandise (0.0%):
3 Douglas Holding AG.................. 125
--------
Telecommunications (1.6%):
302 Deutsche Telekom AG................. 7,417
--------
Textile Products (0.0%):
1 Escada AG........................... 102
--------
</TABLE>
Continued
55
<PAGE> 58
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Utilities--Electric & Gas (0.6%):
65 RWE AG.............................. $ 2,818
--------
Total Germany....................... 76,355
--------
GREECE (0.8%):
Agriculture (0.0%):
6 Hellenic Sugar Industry SA.......... 37
--------
Banking & Financial Services (0.6%):
17 Alpha Credit Bank................... 1,127
7 Commercial Bank of Greece SA........ 275
13 Ergo Bank SA........................ 770
4 National Bank of Greece SA.......... 507
--------
2,679
--------
Beverages & Tobacco (0.1%):
11 Hellenic Bottling Co. SA............ 409
--------
Building Products (0.1%):
26 Heracles General Cement Co. SA...... 478
--------
Telecommunications (0.0%):
3 Intracom SA (b)..................... 127
--------
Total Greece........................ 3,730
--------
HONG KONG (1.1%):
Airlines (0.1%):
194 Cathay Pacific Airways.............. 402
--------
Banking (0.1%):
83 Bank of East Asia Ltd............... 347
6 HSBC Holdings PLC................... 180
--------
527
--------
Banking & Financial Services (0.1%):
38 Wing Lung Bank...................... 243
--------
Broadcasting & Publishing (0.1%):
95 Television Broadcasts Ltd........... 427
--------
Conglomerates (0.1%):
68 Swire Pacific Ltd., Class A......... 612
--------
Electrical Equipment (0.0%):
645 Elec & Eltek International
Holdings Ltd...................... 189
--------
Industrial Holding Companies (0.3%):
145 Hutchison Whampoa Ltd............... 1,254
--------
Printing & Publishing (0.0%):
263 Oriental Press Group Ltd............ 108
--------
Real Estate (0.1%):
56 Sun Hung Kai Properties Ltd......... 674
--------
Telecommunications (0.2%):
418 Hong Kong Telecommunications Ltd.... 997
--------
Total Hong Kong..................... 5,433
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
INDONESIA (0.8%):
Agriculture (0.1%):
369 PT SMART Corp....................... $ 334
--------
Auto Parts (0.0%):
31 PT Astra International--
Foreign Registry (b).............. 126
--------
Banking & Financial Services (0.1%):
298 PT Bank International Indonesia--
Foreign Registry.................. 258
--------
Building Products (0.1%):
222 Indocement Tunggal Prakarsa......... 344
--------
Forest Products (0.1%):
203 PT Barito Pacific Timber............ 173
--------
100 PT Inti Indorayon Utama--
Foreign Registry (b).............. 70
--------
243
--------
Telecommunications (0.2%):
108 PT Indosat.......................... 322
--------
285 PT Telekomunikasi Indonesia......... 464
--------
786
--------
Textile Products (0.1%):
1,246 PT Polysindo Eka Perkasa--
Foreign Registry.................. 692
--------
Tobacco (0.1%):
155 PT Gudang Garam..................... 648
51 PT Hanjaya Mandala Sampoerna........ 193
--------
841
--------
Total Indonesia..................... 3,624
--------
IRELAND (0.3%):
Banking (0.1%):
38 Allied Irish Banks PLC.............. 287
--------
Banking & Financial Services (0.2%):
132 Allied Irish Banks PLC.............. 1,012
--------
Beverages & Tobacco (0.0%):
77 James Crean PLC..................... 231
--------
Total Ireland....................... 1,530
--------
ITALY (6.7%):
Agriculture (0.1%):
306 Parmalat Finanziaria SpA............ 432
--------
Automotive (0.5%):
616 Fiat SpA............................ 2,216
136 Fiat SpA di Risp
(Non-convertible)................. 256
--------
2,472
--------
</TABLE>
Continued
56
<PAGE> 59
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
ITALY, CONTINUED:
Banking (0.6%):
378 Banca Commerciale Italiana.......... $ 782
86 Banco Ambrosiano Veneto SpA......... 249
344 Credito Italiano SpA................ 629
129 Istituto Bancario San Paolo di
Torino............................ 937
32 Riunione Adriatica di Sicurta SpA
di Risp........................... 158
--------
2,755
--------
Banking & Financial Services (0.1%):
42 Mediobanca SpA...................... 256
--------
Broadcasting & Publishing (0.2%):
190 Mediaset SpA........................ 807
--------
Building Products (0.0%):
28 Italcementi SpA (b)................. 174
--------
Chemicals (0.1%):
801 Montedison SpA (b).................. 528
--------
Computer Hardware (0.0%):
447 Olivetti Group SpA (b).............. 126
--------
Engineering (0.0%):
145 Impregilo SpA (b)................... 95
--------
Insurance (1.1%):
241 Assicurazioni Generali.............. 4,370
23 La Previdente....................... 121
56 Riuniune Adriatici de Sicurta SpA... 446
63 Societa Assicuratrice Industriale
(SAI) SpA......................... 486
5,423
--------
Oil & Gas Exploration, Production & Services (1.7%):
1,320 Ente Nazionale Idrocarburi SpA
(ENI)............................. 7,465
--------
Paper Products (0.0%):
34 Burgo (Cartiere) SpA................ 188
--------
Retail Stores (0.0%):
36 La Rinascente SpA................... 198
--------
Retail Stores/Catalog (0.0%):
36 Itl La Rinascente Rights............ 6
--------
Steel (0.0%):
22 Falck Acciaierie & Ferriere Lombarde
SpA............................... 81
--------
Telecommunications (1.9%):
56 Sirti SpA........................... 321
1,051 Telecom Italia Mobile SpA........... 3,145
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
STOCKS, CONTINUED:
ITALY, CONTINUED:
Telecommunications, continued:
1,198 Telecom Italia Mobile SpA di Risp
(Non-convertible)................. $ 3,873
329 Telecom Italia SpA.................. 588
333 Telecom Italia SpA di Risp
(Non-convertible)................. 659
--------
8,586
--------
Textile Products (0.1%):
35 Benetton Group SpA.................. 554
--------
Tire & Rubber (0.1%):
263 Pirelli SpA......................... 650
--------
Utilities--Electric & Gas (0.2%):
97 Edison SpA.......................... 481
121 Italgas SpA......................... 392
--------
873
--------
Total Italy......................... 31,669
--------
JAPAN (24.2%):
Agriculture (0.0%):
25 Nippon Beet Sugar Manufacturing..... 92
--------
Airlines (0.1%):
115 Japan Airlines (b).................. 524
--------
Aluminum (0.0%):
17 Nippon Light Metal Co............... 62
--------
Appliances & Household Products (1.2%):
127 Matsushita Electric Industrial Co.,
Ltd............................... 2,563
11 Pioneer Electronic Corp............. 267
95 Sanyo Electric Co................... 427
63 Sharp Corp.......................... 870
19 Sony Corp........................... 1,659
--------
5,786
--------
Automotive (2.1%):
60 Honda Motor Co., Ltd................ 1,809
151 Nissan Motor Co., Ltd............... 1,173
23 Toyoda Automatic Loom Works......... 523
204 Toyota Motor Corp................... 6,025
--------
9,530
--------
Banking (4.2%):
131 Asahi Bank Ltd...................... 1,116
298 Bank of Tokyo--Mitsubishi........... 5,982
78 Bank of Yokohama Ltd................ 440
75 Chiba Bank Ltd...................... 447
168 Fuji Bank Ltd....................... 2,525
115 Industrial Bank of Japan............ 1,789
48 Joyo Bank........................... 266
55 Mitsui Trust & Banking Co........... 416
198 Sakura Bank Ltd..................... 1,519
</TABLE>
Continued
57
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Banking, continued:
50 Shizuoka Bank....................... $ 572
187 Sumitomo Bank....................... 3,072
119 Tokai Bank.......................... 1,227
--------
19,371
--------
Banking & Financial Services (0.1%):
29 Gunma Bank.......................... 261
--------
Basic Industry (0.1%):
42 Sekisui Chemical Co., Ltd........... 426
--------
Beverages & Tobacco (0.2%):
17 Asahi Breweries Ltd................. 254
49 Kirin Brewery Co., Ltd.............. 510
36 Takara Shuzo........................ 260
--------
1,024
--------
Brewery (0.0%):
18 Sapporo Breweries................... 150
--------
Building Products (0.1%):
20 Chichibu Onoda Cement Co............ 78
16 Nihon Cement Co., Ltd............... 77
12 Tostem Corp......................... 333
--------
488
--------
Chemicals (0.9%):
72 Asahi Chemical Industry Co., Ltd.... 431
2 Asahi Denka Kogyo K.K............... 14
97 Denki Kagaku Kogyo K.K.............. 268
32 Kaneka Corp......................... 201
98 Mitsubishi Chemical Corp............ 320
51 Mitsui Toatsu Chemicals............. 140
14 Nippon Shokubai K.K. Co............. 111
14 NOF Corp............................ 60
6 Rasa Industries Ltd................. 37
12 Shin-Etsu Chemical Co............... 329
59 Showa Denko K.K. (b)................ 155
100 Sumitomo Chemical Co................ 454
32 Takeda Chemical Industries.......... 902
80 Toray Industries, Inc............... 571
72 Tosoh Corp. (b)..................... 244
74 Ube Industries Ltd.................. 215
--------
4,452
--------
Construction (0.4%):
9 Aoki Corp. (b)...................... 11
11 Daiko, Inc.......................... 43
21 Daiwa House Industry Co., Ltd....... 257
22 Haseko (b).......................... 35
56 Kumagai Gumi Co., Ltd............... 93
12 Misawa Homes........................ 73
18 Okumura Corp........................ 95
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Construction, continued:
20 Penta-Ocean Construction Co.,
Ltd............................... $ 65
61 Sekisui House Ltd................... 619
59 Shimizu Corp........................ 354
43 Taisei Corp......................... 200
--------
1,845
--------
Consumer Goods & Services (0.2%):
35 Nippon Sheet Glass Co., Ltd......... 129
50 Toto Ltd............................ 610
--------
739
--------
Data Processing & Reproduction (0.3%):
117 Fujitsu Ltd......................... 1,626
--------
Distribution (0.1%):
77 Itochu Corp......................... 415
--------
Diversified (0.1%):
9 Amano Corp.......................... 102
18 Yamaha Corp......................... 331
--------
433
--------
Electrical & Electronic (0.6%):
9 Kyocera Corp........................ 716
116 Mitsubishi Electric Corp............ 650
16 Nikon Corp.......................... 270
17 Omron Corp.......................... 361
7 Rohm Co............................. 721
--------
2,718
--------
Electrical Equipment (0.1%):
7 SMC Corp............................ 601
--------
Electronic Components/Instruments (0.9%):
13 Fanuc Co., Ltd...................... 500
3 Hirose Electric..................... 213
195 Hitachi Ltd......................... 2,181
93 NEC Corp............................ 1,300
23 Yokogawa Electric Corp.............. 200
--------
4,394
--------
Energy (0.5%):
51 Cosmo Oil Co., Ltd.................. 244
211 Japan Energy Corp................... 553
264 Nippon Oil Co....................... 1,447
--------
2,244
--------
Engineering (0.3%):
9 Daito Trust Construction Co.,
Ltd............................... 106
36 Fujita Corp......................... 63
33 Hazama Corp......................... 68
36 Kajima Corp......................... 211
56 Kawasaki Heavy Industries........... 261
13 Kinden Corp......................... 183
</TABLE>
Continued
58
<PAGE> 61
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Engineering, continued:
19 Nishimatsu Construction............. $ 133
53 Obayashi Corp....................... 355
1 Sato Kogyo.......................... 2
--------
1,382
--------
Entertainment (0.1%):
6 Toei................................ 41
16 Tokyo Dome Corp..................... 215
--------
256
--------
Financial Services (0.8%):
11 Acom Co., Ltd....................... 531
55 Daiwa Securities Co., Ltd........... 435
57 Mitsubishi Trust & Banking Co....... 902
12 Nippon Shinpan Co................... 43
94 Nomura Securities Co................ 1,297
6 Orix Corp........................... 445
54 Yamaichi Securities Co., Ltd........ 161
43 Yasuda Trust & Banking.............. 165
--------
3,979
--------
Food & Household Products (0.2%):
27 Ajinomoto Co., Inc.................. 290
39 Kao Corp............................ 543
10 Nissin Food Products................ 260
--------
1,093
--------
Food Products & Services (0.1%):
34 Daiei, Inc.......................... 218
10 Kikkoman Corp....................... 66
28 Nichirei Corp....................... 140
8 Nippon Suisan Kaisha Ltd. (b)....... 27
12 Nisshin Oil Mills Ltd............... 68
--------
519
--------
Forest Products (0.3%):
22 Hokuetsu Paper Mills Ltd............ 134
38 Mitsubishi Paper Mills.............. 149
115 New Oji Paper Co.................... 714
70 Nippon Paper Industries Co.......... 406
--------
1,403
--------
Health & Personal Care (0.6%):
9 Chugai Pharmaceutical Co., Ltd...... 81
20 Kyowa Hakko Kogyo Co., Ltd.......... 150
21 Lion Corp........................... 96
27 Sankyo Co., Ltd..................... 908
57 Yamanouchi Pharmaceutical Co.,
Ltd............................... 1,535
--------
2,770
--------
Hotels & Lodging (0.0%):
11 Fujita Kanko, Inc................... 138
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Industrial Goods & Services (0.8%):
57 Bridgestone Corp.................... $ 1,326
50 Denso Corp.......................... 1,197
33 Mitsui Engineering & Shipbuilding
Co., Ltd. (b)..................... 72
36 NGK Insulators Ltd.................. 396
34 Sumitomo Electric Industries........ 570
--------
3,561
--------
Insurance (0.4%):
39 Mitsui Marine & Fire
Insurance Co., Ltd................ 282
14 Nichido Fire & Marine
Insurance Co., Ltd................ 100
12 Nippon Fire & Marine Insurance...... 65
22 Sumitomo Marine & Fire Insurance.... 181
85 Tokio Marine & Fire Insurance Co.... 1,114
--------
1,742
--------
Jewelry (0.1%):
40 Citizen Watch Co., Ltd.............. 309
--------
Leasing (0.1%):
45 Yamato Transport Co., Ltd........... 562
--------
Machinery & Equipment (1.1%):
20 Chiyoda Corp. (b)................... 96
9 Daifuku Co., Ltd.................... 119
18 Daikin Industries Ltd............... 164
14 Ebara Corp.......................... 210
49 Komatsu Ltd......................... 398
40 Koyo Seiko Co., Ltd................. 320
94 Kubota Corp......................... 461
32 Minebea Co., Ltd.................... 341
229 Mitsubishi Heavy Industries, Ltd.... 1,760
5 Mori Seiki.......................... 80
58 Niigata Engineering Co., Ltd. (b)... 106
25 NSK Ltd............................. 161
37 NTN Corp............................ 207
12 Okuma Corp.......................... 106
10 Tokyo Electron Ltd.................. 465
--------
4,994
--------
Manufacturing-Capital Goods (0.4%):
38 Fujikura Ltd........................ 355
16 Kokuyo Co., Ltd..................... 433
21 Makita Corp......................... 308
15 Murata Manufacturing Co., Ltd....... 599
12 Nippon Piston Ring Co., Ltd......... 37
5 Nippon Sharyo Ltd................... 32
22 Noritake Co., Ltd................... 198
</TABLE>
Continued
59
<PAGE> 62
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Manufacturing-Capital Goods, continued:
7 Tokai Carbon Co., Ltd............... $ 31
11 Topy Industries Ltd................. 40
--------
2,033
--------
Manufacturing-Consumer Goods (0.7%):
69 Canon, Inc.......................... 1,882
33 Fuji Photo Film Co., Ltd............ 1,329
5 Sega Enterprises.................... 166
--------
3,377
--------
Materials (0.0%):
15 Sumitomo Osaka Cement Co., Ltd...... 47
--------
Merchandising (0.5%):
28 ITO-Yokado Co., Ltd................. 1,628
14 JUSCO Co............................ 473
10 Marui Co., Ltd...................... 186
1 Seven-Eleven Japan Ltd.............. 68
--------
2,355
--------
Metals & Mining (0.2%):
17 Dowa Mining Co., Ltd................ 66
21 Furukawa Electric Co................ 134
46 Hitachi Zosen Corp.................. 183
66 Japan Steel Works (b)............... 129
67 Mitsubishi Materials Corp........... 269
30 Mitsui Mining & Smelting............ 133
3 Seika Corp.......................... 11
22 Sumitomo Metal Mining Co............ 156
--------
1,081
--------
Miscellaneous Materials & Commodities (0.1%):
66 Asahi Glass Co., Ltd................ 658
--------
Office Equipment & Services (0.3%):
57 Dai Nippon Printing Co., Ltd........ 1,290
--------
Oil & Gas Exploration, Production & Services (0.1%):
9 Arabian Oil Co...................... 303
66 Teikoku Oil Co...................... 296
--------
599
--------
Oil & Gas Transmission (0.0%):
10 Iwatani International Corp.......... 40
33 Mitsubishi Oil Co., Ltd............. 147
--------
187
--------
Packaging (0.0%):
10 Toyo Seikan Kaisha.................. 220
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Pharmaceuticals (0.2%):
12 Meiji Seika......................... $ 66
13 Shionogi & Co....................... 101
29 Taisho Pharmacuetical Co............ 783
--------
950
--------
Real Estate (0.5%):
98 Mitsubishi Estate Co................ 1,421
75 Mitsui Fudosan...................... 1,036
--------
2,457
--------
Restaurants (0.0%):
8 Skylark Co., Ltd.................... 122
--------
Retail Stores/Catalog (0.3%):
10 Hankyu Department Stores............ 106
12 Isetan Co........................... 149
52 Mycal Corp.......................... 750
26 Takashimaya Co...................... 354
--------
1,359
--------
Retail-General Merchandise (0.0%):
8 Mitsukoshi Ltd...................... 57
--------
Services (0.3%):
12 Secom............................... 881
35 Toppan Printing Co., Ltd............ 551
--------
1,432
--------
Steel (0.6%):
53 Daido Steel Co., Ltd................ 171
4 Japan Metals & Chemicals (b)........ 10
166 Kawasaki Steel Corp................. 541
4 Nippon Denko Co., Ltd............... 11
9 Nippon Metal Industry............... 27
360 Nippon Steel Co..................... 1,151
199 NKK Corp............................ 428
201 Sumitomo Metal Industries........... 573
--------
2,912
--------
Storage (0.0%):
3 Mitsubishi Logistics Corp........... 43
--------
Telecommunications (0.5%):
0 Nippon Telegraph & Telephone
Corp. (d)......................... 2,499
--------
Textile Products (0.3%):
244 Kanebo Ltd. (b)..................... 449
26 Kurabo Industries................... 70
31 Kuraray Co., Ltd.................... 309
16 Mitsubishi Rayon Co., Ltd........... 66
13 Nisshinbo Industries................ 118
4 Nitto Boseki Co., Ltd............... 14
27 Teijin Ltd.......................... 127
</TABLE>
Continued
60
<PAGE> 63
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Textile Products, continued:
27 Toyobo Ltd.......................... $ 71
48 Unitika Ltd. (b).................... 96
--------
1,320
--------
Tire & Rubber (0.0%):
14 Yokohama Rubber Co., Ltd............ 60
--------
Transportation & Shipping (0.2%):
27 Kamigumi Co., Ltd................... 152
93 Kawasaki Kisen Kaisha Ltd. (b)...... 188
33 Mitsui OSK Lines, Ltd. (b).......... 68
64 Nippon Yusen Kabushiki Kaisha....... 249
12 Seino Transportation................ 130
--------
787
--------
Transportation--Road & Railroad (0.7%):
91 Hankyu Corp......................... 503
30 Keihin Electric Express Railway..... 140
232 Kinki Nippon Railway................ 1,422
49 Nippon Express Co., Ltd............. 392
40 Odakyu Electric Railway............. 238
36 Tobu Railway Co., Ltd............... 166
49 Tokyu Corp.......................... 304
--------
3,165
--------
Utilities--Electric & Gas (0.7%):
38 Kansai Electric Power Co., Inc...... 734
82 Osaka Gas Co........................ 236
22 Tohoku Electric Power............... 396
81 Tokyo Electric Power................ 1,694
92 Tokyo Gas Co., Ltd.................. 256
--------
3,316
--------
Wholesale & International Trade (0.5%):
123 Marubeni Corp....................... 559
71 Mitsubishi Corp..................... 888
59 Mitsui & Co......................... 567
46 Sumitomo Corp....................... 438
--------
2,452
--------
Wire & Cable Products (0.0%):
4 Showa Electric Wire & Cable......... 14
8 Tokyo Rope MFG...................... 28
--------
42
--------
Total Japan......................... 114,709
--------
KOREA (0.6%):
Airlines (0.0%):
0 Korean Air (b)(d)................... 4
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
KOREA, CONTINUED:
Automotive (0.0%):
0 Hyundai Motor Co., Ltd. (d)......... $ 3
3 Kia Motors Corp. (b)................ 46
--------
49
--------
Banking (0.0%):
5 Cho Hung Bank Co., Ltd.............. 33
5 Commercial Bank of Korea............ 28
6 SeoulBank (b)....................... 25
0 Shinhan Bank (d).................... 0
--------
86
--------
Banking & Financial Services (0.0%):
5 Korea Exchange Bank................. 31
6 Korea First Bank.................... 23
2 Korea Long-Term Credit Bank......... 26
--------
80
--------
Chemicals (0.0%):
2 Han Wha Corp........................ 22
3 Hanwha Chemical Corp................ 25
7 LG Chemical Ltd..................... 93
--------
140
--------
Distribution (0.0%):
8 Daewoo Corp......................... 61
5 Samsung Corp........................ 66
--------
127
--------
Electrical & Electronic (0.1%):
9 Daewoo Electronics Co. (b).......... 70
8 LG Electronics...................... 148
1 Samsung Display Devices Co.......... 42
--------
260
--------
Electronic Components/Instruments (0.0%):
2 Samsung Electro-Mechanics Co........ 60
2 Samsung Electronics Co.............. 167
--------
227
--------
Engineering (0.1%):
6 Dong-Ah Construction Industrial
Co................................ 119
8 Hyundai Engineering &
Construction Co................... 194
--------
313
--------
Financial Services (0.0%):
2 Daewoo Securities Co. (b)........... 34
5 Hanil Bank.......................... 29
4 Hyundai Securities Co. (b).......... 61
</TABLE>
Continued
61
<PAGE> 64
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
KOREA, CONTINUED:
Financial Services, continued:
2 LG Securities (b)................... $ 22
2 Ssangyong Investment &
Securities Co., Ltd. (b).......... 15
--------
161
--------
Machinery & Equipment (0.0%):
9 Daewoo Heavy Industries............. 77
2 Hyundai Precision Industry Co....... 31
8 Samsung Heavy Industries (b)........ 81
--------
189
--------
Oil & Gas Exploration, Production & Services (0.0%):
2 Ssangyong Oil Refining Co., Ltd..... 43
5 Yukong Ltd.......................... 122
--------
165
--------
Retail-General Merchandise (0.0%):
0 Shinsegae Department Store Co.
(d)............................... 16
--------
Steel (0.2%):
5 Dongkuk Steel Mill Co............... 122
14 Hyundai Pipe Co., Ltd. (b).......... 117
4 Inchon Iron & Steel Co.............. 77
--------
316
--------
Telecommunication--Services & Equipment (0.0%):
1 LG Information & Communication
Ltd............................... 111
Utilities--Electric & Gas (0.2%):
18 Korea Electric Power Corp........... 525
--------
Total Korea......................... 2,769
--------
LUXEMBOURG (0.1%):
Aluminum (0.1%):
9 Hindalco Industries Ltd. GDR........ 332
--------
MALAYSIA (0.4%):
Agriculture (0.0%):
118 Highlands & Lowlands Berhad......... 180
--------
Building Products (0.0%):
80 Pan-Malaysia Cement Works Berhad.... 95
--------
Engineering (0.0%):
19 United Engineers (Malaysia) Ltd..... 134
--------
Financial Services (0.2%):
99 Idris Hydraulic (Malaysia) Berhad
(b)............................... 110
94 Rashid Hussain Berhad............... 596
13 Rashid Hussain Rights............... 0
--------
706
--------
Food Products & Services (0.1%):
54 Nestle (Malaysia) Berhad............ 404
--------
Forest Products (0.0%):
21 Land & General Berhad............... 24
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
MALAYSIA, CONTINUED
Telecommunications (0.0%):
41 Technology Resources Industries
Berhad (b)........................ $ 70
--------
Utilities--Electric & Gas (0.1%):
51 Tenaga Nasional Berhad.............. 250
--------
Total Luxembourg.................... 1,863
--------
MEXICO (0.7%):
Banking (0.0%):
105 Grupo Financiero Banamex Accival SA
de CV (b)......................... 51
--------
Beverages & Tobacco (0.0%):
13 Grupo Continental SA................ 34
27 Grupo Embotelladoras de Mexico SA de
CV................................ 55
--------
89
--------
Brewery (0.0%):
13 Fomento Economico Mexicano SA de CV,
Class B........................... 77
--------
Building Products (0.1%):
8 Apasco SA de CV..................... 57
32 Cemex SA de CV, Series A............ 138
20 Cemex SA de CV, Series B............ 98
15 Cemex SA de CV, Series CPO.......... 65
11 Tolmex SA de CV, Series B2 (b)...... 59
--------
417
--------
Diversified (0.2%):
22 ALFA SA de CV, Class A.............. 152
37 Carso Global Telecom, Series A-1.... 142
4 Desc SA de CV, Series A............. 28
4 Desc SA de CV, Series B............. 29
3 Desc SA de CV, Series C............. 23
37 Grupo Carso SA de CV, Series A-1.... 253
--------
627
--------
Engineering (0.0%):
8 Empresas ICA Sociedad Controladora
SA de CV.......................... 134
16 Grupo Tribasa SA de CV (b).......... 41
--------
175
--------
Financial Services (0.0%):
25 Grupo Financiero Banamex Accival SA
de CV (b)......................... 67
0 Grupo Financiero Inbursa SA de CV,
Class B (b)(d).................... 0
--------
67
--------
</TABLE>
Continued
62
<PAGE> 65
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
MEXICO, CONTINUED:
Food & Household Products (0.1%):
85 Kimberly-Clark de Mexico SA de CV,
Class A........................... $ 337
--------
Industrial Goods & Services (0.0%):
10 Grupo Industrial Bimbo SA de CV,
Series A.......................... 72
--------
Merchandising (0.0%):
38 Cifra SA de CV, Series B............ 70
51 Cifra SA de CV, Series C............ 81
--------
151
--------
Metals & Mining (0.0%):
18 Grupo Mexico SA, Series B........... 67
13 Industrias Penoles SA, Series CP.... 62
--------
129
--------
Retail General Merchandise (0.0%):
39 Controladora Comercial Mexicana SA
de CV............................. 36
--------
Retail Stores/Catalog (0.0%):
52 Cifra SA de CV, Series A............ 95
40 El Puerto de Liverpool SA de CV,
Series 1.......................... 51
10 Sears Roebuck de Mexico SA de CV
(b)............................... 23
--------
169
--------
Steel (0.0%):
26 Altos Hornos de Mexico SA (b)....... 63
10 Hylsamex SA......................... 51
--------
114
--------
Telecommunications (0.3%):
8 Grupo Televisa SA, Series CPO (b)... 121
269 Telefonos de Mexico SA, Series L.... 643
--------
764
--------
Tobacco (0.0%):
17 Empresas La Moderna SA de CV (b).... 88
--------
Transportation--Shipping (0.0%):
30 Vitro SA (b)........................ 109
--------
Wholesale Distribution (0.0%):
15 Grupo Casa Autrey SA de CV.......... 30
--------
Total Mexico........................ 3,502
--------
NETHERLANDS (2.8%):
Appliances & Household Products (0.2%):
14 Philips Electronics NV.............. 969
--------
Banking (0.3%):
81 ABN Amro Holding NV................. 1,506
--------
Beverages & Tobacco (0.1%):
2 Heineken NV......................... 398
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
NETHERLANDS, CONTINUED:
Broadcasting & Publishing (0.2%):
43 Elsevier NV......................... $ 715
--------
Chemicals (0.2%):
6 Akzo Nobel.......................... 755
1 DSM NV.............................. 90
--------
845
--------
Energy (0.8%):
82 Nlg Royal Dutch Petroleum........... 4,261
--------
Financial Services (0.5%):
52 ING Groep NV........................ 2,386
--------
Food Products & Services (0.3%):
6 Unilever NV CVA (b)................. 1,286
--------
Services (0.2%):
20 Koninklijke Royal PTT Nederland
NV................................ 804
--------
Total Netherlands................... 13,170
--------
NEW ZEALAND (0.3%):
Beverages & Tobacco (0.1%):
125 Lion Nathan Ltd..................... 317
--------
Telecommunications (0.2%):
205 Telecom Corp. of New Zealand Ltd.... 1,044
--------
Total New Zealand................... 1,361
--------
NORWAY (0.9%):
Engineering (0.1%):
7 Kvaerner ASA........................ 413
--------
Entertainment (0.0%):
43 NCL Holdings ASA (b)................ 135
--------
Forest Products (0.1%):
7 Norske Skogsindustrier ASA.......... 245
--------
Insurance (0.1%):
54 Storebrand ASA (b).................. 322
--------
Medical Equipment & Supplies (0.0%):
17 Hafslund ASA, Class A............... 90
--------
Metals & Mining (0.0%):
11 Elkem ASA........................... 208
Oil & Gas Exploration, Production & Services (0.5%):
7 Aker ASA, Class A................... 124
12 Aker ASA, Class B................... 227
33 Norsk Hydro ASA..................... 1,804
5 Petroleum Geo-Services ASA (b)...... 257
--------
2,412
--------
Pharmaceuticals (0.0%):
13 Nycomed ASA, Class B................ 183
--------
</TABLE>
Continued
63
<PAGE> 66
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
NORWAY, CONTINUED:
Transportation--Shipping (0.1%):
17 Leif Hoegh & Co. ASA................ $ 374
--------
Total Norway........................ 4,382
--------
PHILIPPINES (0.5%):
Agriculture (0.0%):
311 Vitarich Corp. (b).................. 31
--------
Banking & Financial Services (0.2%):
54 Far East Bank & Trust Co............ 135
10 Metropolitan Bank & Trust Co........ 215
11 Philippine Commercial International
Bank.............................. 104
21 Philippine National Bank (b)........ 144
--------
598
--------
Beverages & Tobacco (0.0%):
60 San Miguel Corp., Class B........... 158
--------
Building Products (0.0%):
374 Southeast Asia Cement Holdings, Inc.
(b)............................... 18
--------
Diversified (0.0%):
306 Ayala Corp., Class B................ 220
--------
Homebuilders (0.0%):
95 C&P Homes, Inc...................... 35
--------
Oil & Gas Exploration, Production & Services (0.1%):
999 Petron Corp......................... 254
--------
Real Estate (0.1%):
413 Ayala Land, Inc., Class B........... 379
78 Filinvest Land, Inc. (b)............ 20
246 SM Prime Holdings, Inc.............. 73
--------
472
--------
Telecommunications (0.1%):
19 Philippine Long Distance
Telephone Co...................... 9
15 Philipino Telephone Corp. (b)....... 480
--------
489
--------
Utilities--Electric & Gas (0.0%):
36 Manila Electric Co., Class B........ 179
--------
Total Philippines................... 2,454
--------
PORTUGAL (0.8%):
Banking (0.4%):
25 Banco Comercial Portugues SA........ 475
17 Banco Espirito Santo e Commerical de
Lisboa SA, Registered (b)......... 378
16 Banco Internacional do Funchal SA
(b)............................... 117
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
PORTUGAL, CONTINUED:
Banking, continued:
1 Banco Totta & Acores SA............. $ 17
17 BPI-SGPS SA, Registered............. 330
--------
1,317
--------
Beverages & Tobacco (0.0%):
11 UNICER-Uniao Cervejeira SA.......... 192
--------
Building Products (0.0%):
1 Cimpor-Cimentos de Portugal,
SGPS SA........................... 30
--------
Food & Household Products (0.1%):
9 Estabelecimentos Jeronimo Martins &
Filho SA.......................... 643
--------
Forest Products (0.1%):
8 Soporcel-Sociedade Portuguesa de
Celulose SA (b)................... 241
--------
Industrial Holding Companies (0.1%):
10 Sonae Investimentos SA.............. 431
--------
Insurance (0.0%):
6 Companhia de Seguros Tranquilidade,
Registered........................ 123
--------
Retail-General Merchandise (0.0%):
5 Modelo Continente-Sociedade Gestora
de Participacoes Sociais SA....... 220
--------
Telecommunications (0.1%):
16 Portugal Telecom SA................. 658
--------
3,855
--------
Singapore (0.4%):
Lodging (0.1%):
310 Hotel Properties Ltd................ 527
--------
Machinery & Equipment (0.0%):
19 Van Der Horst Ltd................... 35
--------
Real Estate (0.0%):
78 United Industrial Corp., Ltd........ 59
27 United Overseas Land Ltd. (b)....... 37
--------
96
--------
Telecommunications (0.1%):
334 Singapore Telecommunications Ltd.... 617
--------
Transportation & Shipping (0.2%):
468 Chuan Hup Holdings Ltd.............. 336
347 Neptune Orient Lines Ltd............ 311
647
--------
Total Portugal...................... 1,922
--------
</TABLE>
Continued
64
<PAGE> 67
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SOUTH AFRICA (0.7%):
Banking & Financial Services (0.2%):
7 Nedcor Ltd.......................... $ 146
3 Standard Bank Investment Corp.,
Ltd............................... 128
--------
274
--------
Brewery (0.0%):
7 South African Breweries Ltd......... 203
--------
Diversified (0.2%):
5 Anglovaal Industries Ltd............ 19
11 Barlow Ltd.......................... 115
41 Gencor Ltd.......................... 187
0 Haggie Ltd.......................... 1
18 Malbak Ltd.......................... 28
14 Rembrandt Group Ltd................. 149
13 Smith (C.G.) Ltd.................... 74
--------
573
--------
Engineering (0.0%):
31 Murray & Roberts Holdings Ltd....... 72
--------
Entertainment (0.0%):
55 Sun International (South Africa)
Ltd............................... 31
--------
Financial Services (0.0%):
12 Amalgamated Banks of South Africa... 84
7 First National Bank Holdings Ltd.... 59
--------
143
--------
Food & Household Products (0.0%):
3 Tiger Oats Ltd...................... 60
--------
Food Products & Services (0.0%):
2 Foodcorp Ltd........................ 15
--------
Forest Products (0.0%):
11 Nampak Ltd.......................... 49
13 Sappi Ltd........................... 113
--------
162
--------
Industrial Goods & Services (0.0%):
1 Anglo American Industrial Corp.,
Ltd............................... 48
--------
Insurance (0.0%):
5 Liberty Life Association of Africa
Ltd............................... 144
4 Southern Life Association Ltd....... 44
--------
188
--------
Metals & Mining (0.3%):
6 Anglo American Corp. of South Africa
Ltd............................... 357
1 Anglo American Gold Investment Co.,
Ltd............................... 30
9 DeBeers Centenary AG................ 343
5 Driefontein Consolidated Ltd........ 35
2 Gold Fields of South Africa Ltd..... 35
8 Johnnies Industrial Corp., Ltd...... 105
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SOUTH AFRICA, CONTINUED:
Metals & Mining, continued:
6 Kloof Gold Mining Company Ltd....... $ 33
8 Randfontein Estates Gold Mining
Co................................ 17
5 Rustenburg Platinum Holdings Ltd.... 86
4 Samancor Ltd........................ 41
--------
1,082
--------
Oil & Gas Exploration, Production & Services (0.0%):
14 Sasol Ltd........................... 185
--------
Pharmaceuticals (0.0%):
3 South African Druggists Ltd......... 24
--------
Retail-General Merchandise (0.0%):
2 Ellerine Holdings Ltd............... 18
7 New Clicks Holdings Ltd............. 7
--------
25
--------
Total South Africa.................. 3,085
--------
SPAIN (4.1%):
Banking (1.3%):
28 Banco Bilbao Vizcaya SA,
Registered........................ 2,261
23 Banco Central Hispanoamericano SA... 828
17 Corporacion Bancaria de Espana SA... 965
64 Esp Banco Santander Sa.............. 1,982
--------
6,036
--------
Beverages & Tobacco (0.1%):
12 El Aguila SA (b).................... 58
6 Tabacalera SA, Class A.............. 323
--------
381
--------
Building Products (0.0%):
15 Uralita SA.......................... 168
--------
Chemicals (0.0%):
54 Ercros SA (b)....................... 55
--------
Construction (0.0%):
7 Dragados Y Construcciones SA........ 146
--------
Energy (0.4%):
48 Repsol SA........................... 2,038
--------
Food & Household Products (0.1%):
17 Ebro Agricolas, Compania de
Alimentacion SA................... 330
--------
Forest Products (0.1%):
7 Empresa Nacional de Celulosas SA.... 129
38 Sarrio SA........................... 149
--------
278
--------
Industrial Holding Companies (0.2%):
6 Corporacion Financiara Alba......... 712
--------
Insurance (0.0%):
4 Corporacion Mapfre.................. 192
--------
</TABLE>
Continued
65
<PAGE> 68
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SPAIN, CONTINUED:
Miscellaneous Materials & Commodities (0.0%):
6 Viscofan Industria Navarra de
Envolturas Celulosicas SA......... $ 150
--------
Real Estate (0.2%):
9 Inmobiliaria Metropolitana Vasco
Central SA........................ 313
16 Vallehermoso SA..................... 424
--------
737
--------
Steel (0.1%):
3 Acerinox SA......................... 597
--------
Telecommunications (0.8%):
130 Telefonica de Espana................ 3,757
--------
Utilities--Electric & Gas (0.8%):
20 Empresa Nacional de Electricidad
SA................................ 450
3 Fomento de Construcciones y
Contratas SA...................... 358
5 Gas Natural SDG SA.................. 1,116
114 Iberdrola SA........................ 1,446
48 Union Electric Fenosa SA............ 440
--------
3,810
--------
Total Spain......................... 19,387
--------
SWEDEN (1.8%):
Automotive (0.1%):
15 Volvo AB, Series B.................. 388
--------
Banking & Financial Services (0.1%):
27 Skandiaviska Enskilda Banken, Class
A................................. 296
11 Svenska Handlesbanken, Class A...... 357
--------
653
--------
Engineering (0.2%):
32 ABB AB, A Shares.................... 442
8 ABB AB, B Shares.................... 112
4 Skanska AB, Series B................ 188
--------
742
--------
Forest Products (0.1%):
15 Stora Kopparbergs Bergslags
Aktiebolag, Series A.............. 244
6 Stora Kopparbergs Bergslags
Aktiebolag, Series B.............. 94
16 Svenska Cellulosa AB, Series B...... 330
--------
668
--------
Insurance (0.0%):
4 Skandia Forsakrings AB.............. 155
--------
Machinery & Equipment (0.1%):
13 Atlas Copco AB, Series A............ 347
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWEDEN, CONTINUED:
Manufacturing-Consumer Goods (0.1%):
6 Electrolux AB, Series B............. $ 399
--------
Metals & Mining (0.0%):
4 SKF AB, Series B.................... 110
7 Trelleborg AB, Series B............. 117
--------
227
--------
Metals (Non-ferrous) (0.0%):
3 Granges AB.......................... 37
--------
Office Equipment & Services (0.0%):
5 Esselte AB, Series B................ 108
--------
Pharmaceuticals (0.5%):
26 Astra AB, A Shares.................. 489
80 Astra AB, B Shares.................. 1,416
--------
1,905
--------
Retail-General Merchandise (0.2%):
32 Hennes & Mauritz AB, B Shares....... 1,146
--------
Telecommunications (0.4%):
48 Telefonaktiebolaget LM Ericsson,
Series B.......................... 1,872
--------
Tobacco (0.0%):
20 Swedish Match AB.................... 68
--------
Total Sweden........................ 8,715
--------
SWITZERLAND (2.4%):
Banking (0.1%):
1 Swiss Bank Corp. (b)................ 356
--------
Chemicals (0.1%):
4 Ciba Specialty Chemicals AG......... 327
--------
Consumer Goods (0.0%):
1 Societe Suisse pour la
Microelectronique et l'Horlogerie
AG................................ 156
--------
Diversified (0.1%):
0 ABB AG, Bearer Shares (d)........... 394
0 Alusuisse-Lonza Holding AG,
Registered (d).................... 156
--------
550
--------
Financial Services (0.3%):
5 CS Holding AG, Registered........... 580
1 Union Bank of Switzerland........... 715
--------
1,295
--------
Food Products & Services (0.2%):
1 Nestle SA, Registered............... 753
--------
Insurance (0.1%):
0 Swiss Reinsurance Co., Registered
(d)............................... 552
--------
</TABLE>
Continued
66
<PAGE> 69
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWITZERLAND, CONTINUED:
Pharmaceuticals (1.5%):
4 Novartis AG, Bearer................. $ 5,658
0 Roche Holding AG (d)................ 550
0 Roche Holding AG, Bearer (d)........ 1,178
--------
7,386
--------
Transportation (0.0%):
1 Sfr Danzas Holding Ag Reg........... 98
--------
Total Switzerland................... 11,473
--------
THAILAND (0.3%):
Airlines (0.0%):
136 Thai Airways International Public
Co., Ltd., Foreign Registered
Shares............................ 200
--------
Banking (0.1%):
42 Bangkok Bank Public Co., Ltd.,
Foreign Registered Shares......... 287
182 Krung Thai Bank Ltd................. 192
--------
479
--------
Computer Hardware (0.1%):
51 Shinamatra Computer Public Co.
Ltd............................... 272
--------
Metals & Mining (0.0%):
655 Padaeng Industries Public Co., Ltd.
(b)............................... 187
--------
Telecommunications (0.1%):
30 Advanced Information Services PLC,
Foreign Registered Shares......... 261
77 TelecomAsia Corp. Public Co., Ltd.
(b)............................... 93
--------
354
--------
Total Thailand...................... 1,492
--------
TURKEY (0.9%):
Appliances & Household Products (0.0%):
1,518 Arcelik AS.......................... 205
--------
Automotive (0.0%):
150 Otosan Otomobil Sanayii AS.......... 80
1,702 Tofas Turk Otomobil Fabrikas AS..... 82
--------
162
--------
Banking & Financial Services (0.3%):
6,824 Akbank TAS.......................... 585
5,952 Turkiye Garanti Bankasi AS.......... 225
--------
810
--------
Beverages & Tobacco (0.0%):
388 Ege Biracilik ve Malt Sanayi AS..... 90
420 Ericiyas Biracilik ve Malt
Sanayii........................... 50
--------
140
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
TURKEY, CONTINUED:
Building Products (0.0%):
385 Akcansa Cimento AS.................. $ 53
266 Cimentas AS......................... 35
333 Cimsa Cimento Sanayi ve Ticaret
AS................................ 45
709 Turk Sise ve Cam Fabrikalari AS..... 45
--------
178
--------
Chemicals (0.0%):
129 Petkim Petrokimya Holding AS........ 44
--------
Diversified (0.2%):
1,714 Dogan Sirketler Grubu Holding AS.... 44
1,604 Koc Holding AS...................... 378
--------
422
--------
Electrical & Electronic (0.0%):
94 Raks Electronik Ev Aletleri......... 19
--------
Financial Services (0.3%):
1,464 Turkiye Is Bankasi AS, Class C...... 572
8,688 Yapi ve Kredi Bankasi AS............ 199
--------
771
--------
Food Products & Services (0.0%):
455 Tat Konserve Sanayii AS............. 34
--------
Forest Products (0.0%):
569 Kartonsan Karton Sanayi ve Ticaret
AS................................ 41
--------
Industrial Goods & Services (0.0%):
273 Kordsa Kord Bezi Sanayi ve Ticaret
AS................................ 23
273 Trl Kordsa Kord Bezi Sanayi
Rights............................ 0
--------
23
--------
Investment Companies (0.0%):
190 Koc Yatrim ve Sanayi Mamulleri
Pazarlama SA...................... 50
--------
Manufacturing-Capital Goods (0.0%):
708 Turk Demir Dokum Fabrikalari AS..... 36
--------
Metals & Mining (0.0%):
874 Eregli Demir ve Celik Fabrikalari
TAS............................... 146
2,209 Izmir Demir Celik Sanayi AS (b)..... 26
--------
172
--------
Oil & Gas Exploration, Production & Services (0.1%):
327 Aygaz AS............................ 67
548 Petrol Ofisi AS..................... 103
272 Tupras Turkiye Petrol Rafinerileri
AS (b)............................ 154
--------
324
--------
Telecommunications (0.0%):
293 Netas-Northern Elektrik
Telekomunikasyon AS (b)........... 81
--------
</TABLE>
Continued
67
<PAGE> 70
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
TURKEY, CONTINUED:
Textile Products (0.0%):
206 Aksa Akrilik Kimya Sanayii AS....... $ 17
--------
Tire & Rubber (0.0%):
133 Brisa Bridgestone Sabanci Lastik
SAN, ve Tic AS.................... 45
145 Goodyear Lastikleri TAS............. 53
--------
98
--------
Transportation (0.0%):
422 Turk Hava Yollari AO (b)............ 121
--------
Utilities--Electric & Gas (0.0%):
89 Cukurova Elektrik AS................ 159
--------
Wholesale Distribution (0.0%):
193 Migros Turk TAS..................... 136
--------
Total Turkey........................ 4,043
--------
UNITED KINGDOM (8.0%):
Aerospace & Military Technology (0.2%):
22 British Aerospace PLC............... 488
43 Rolls-Royce PLC..................... 165
35 Smiths Industries PLC............... 444
--------
1,097
--------
Airlines (0.2%):
65 British Airways PLC................. 735
--------
Appliances & Household Products (0.1%):
14 EMI Group PLC....................... 244
--------
Auto Parts (0.0%):
56 LucasVarity PLC..................... 195
--------
Banking (1.3%):
160 Abbey National PLC.................. 2,189
75 Barclays PLC........................ 1,478
21 HSBC Holdings PLC................... 646
49 HSBC Holdings PLC (Hong Kong
Dollars).......................... 1,446
26 Royal Bank of Scotland Group PLC.... 242
--------
6,001
--------
Beverages & Tobacco (0.2%):
55 Guinness PLC........................ 537
50 Scottish & Newcastle PLC............ 540
--------
1,077
--------
Broadcasting/Cable (0.1%):
53 British Sky Broadcasting Group
PLC............................... 385
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Building Products (0.1%):
30 Marley PLC.......................... $ 62
10 Meyer International PLC............. 72
50 Rugby Group PLC..................... 100
159 Tarmac PLC.......................... 330
--------
564
--------
Chemicals (0.1%):
33 Imperial Chemical Industries PLC.... 459
--------
Conglomerates (0.2%):
92 B.A.T. Industries PLC............... 824
--------
Construction (0.1%):
74 Taylor Woodrow PLC.................. 216
26 Wilson Connolly Holdings PLC........ 69
--------
285
--------
Diversified (0.0%):
54 Lonrho PLC.......................... 114
--------
Electrical & Electronic (0.3%):
50 Bowthorpe PLC....................... 273
57 Electrocomponents PLC............... 428
100 General Electric Co., PLC........... 598
--------
1,299
--------
Energy (0.5%):
173 British Petroleum Co., PLC.......... 2,152
20 Energy Group PLC.................... 214
--------
2,366
--------
Engineering (0.0%):
25 Barratt Developments PLC............ 101
56 Costain Group PLC (b)............... 39
--------
140
--------
Financial Services (0.4%):
169 Lloyds TSB Group PLC................ 1,732
37 St. James's Place Capital PLC....... 80
--------
1,812
--------
Food & Household Products (0.2%):
42 Cadbury Schweppes PLC............... 377
25 Unilever PLC........................ 722
--------
1,099
--------
Food Products & Services (0.1%):
66 J Sainsbury PLC..................... 401
--------
Health & Personal Care (0.6%):
98 Glaxo Wellcome PLC.................. 2,020
27 Zeneca PLC.......................... 876
--------
2,896
--------
</TABLE>
Continued
68
<PAGE> 71
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Industrial Holding Companies (0.3%):
28 BICC Group PLC...................... $ 83
109 BTR PLC............................. 372
94 Grand Metropolitan PLC.............. 912
36 Hanson PLC.......................... 180
--------
1,547
--------
Insurance (0.3%):
56 Commercial Union PLC................ 592
43 Prudential Corp. PLC................ 419
34 Royal & Sun Alliance Insurance Group
PLC............................... 250
--------
1,261
--------
Leisure (0.2%):
58 Granada Group PLC................... 760
29 Rank Group PLC...................... 181
--------
941
--------
Machinery & Equipment (0.1%):
20 GKN PLC............................. 344
--------
Merchandising (0.1%):
43 Safeway PLC......................... 248
--------
Metals & Mining (0.1%):
72 English China Clays PLC............. 246
--------
Metals (Non-ferrous) (0.2%):
43 RTZ Corp., PLC, Registered.......... 740
--------
Metals (Steel) (0.0%):
89 British Steel PLC................... 220
--------
Miscellaneous Materials & Commodities (0.0%):
61 Harrison & Crossfield PLC........... 113
51 Pilkington PLC...................... 116
--------
229
--------
Oil & Gas Exploration, Production & Services (0.0%):
36 LASMO PLC........................... 155
--------
Paper Products (0.0%):
41 Rexam PLC........................... 173
--------
Pharmaceuticals (0.3%):
72 SmithKline Beecham PLC.............. 1,332
--------
Printing & Publishing (0.1%):
52 Reuters Holdings PLC................ 548
--------
Real Estate (0.2%):
19 British Land Co., PLC............... 176
49 Land Securities PLC................. 686
--------
862
--------
Retail Stores/Catalog (0.6%):
46 Boots Co., PLC...................... 533
41 Great Universal Stores PLC.......... 415
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Retail Stores/Catalog, continued:
90 Marks & Spencer PLC................. $ 744
23 Next PLC............................ 256
117 Tesco PLC........................... 720
25 Thorn PLC........................... 71
--------
2,739
--------
Road & Railroad (0.0%):
23 Peninsular & Oriental Steam
Navigation Co..................... 229
--------
Telecommunications (0.6%):
196 British Telecommunications PLC...... 1,453
84 Cable & Wireless PLC................ 769
127 Vodaphone Group PLC................. 616
--------
2,838
--------
Textile Products (0.0%):
24 Courtaulds Textiles PLC............. 124
--------
Utilities--Electric & Gas (0.2%):
108 British Gas PLC..................... 398
110 Centrica PLC........................ 134
35 National Power PLC.................. 308
--------
840
--------
Total United Kingdom................ 37,609
--------
UNITED STATES (1.9%):
Aluminum (0.0%):
16 Indian Aluminum Company Ltd. GDR
(b)............................... 55
--------
Automotive (0.1%):
14 Mahindra & Mahindra Ltd. GDR (b).... 202
16 Tata Engineering & Locomotive Co.,
Ltd. GDR (b)...................... 252
--------
454
--------
Beverages & Tobacco (0.1%):
7 Compania Cervezas Unidas SA ADR..... 147
7 Embotelladora Andina SA ADR......... 143
3 Vina Concho y Toro SA ADR........... 93
--------
383
--------
Building Products (0.0%):
19 Gujarat Ambuja Cements Ltd. GDR..... 182
--------
Chemicals (0.1%):
10 Indian Petrochemicals Corp., Ltd.
GDR............................... 116
41 Indo Gulf Fertilizers and Chemicals
Corp., Ltd. GDR (b)............... 43
6 Quimica Y Minera Chile SA ADR....... 424
7 United Phosphorus Ltd. GDR (b)...... 48
--------
631
--------
</TABLE>
Continued
69
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED STATES, CONTINUED:
Diversified (0.1%):
13 Grasim Industries Ltd. GDR (b)...... $ 176
19 ITC Ltd. GDR (b).................... 305
2 U.S. Industries, Inc. (b)........... 58
--------
539
--------
Forest Products (0.0%):
12 Maderas Y Sinteticos Anonima SA
ADR............................... 198
--------
Hotels & Lodging (0.1%):
6 East India Hotels Ltd. GDR.......... 90
8 Indian Hotels Co., Ltd. GDR (b)..... 185
--------
275
--------
Manufacturing-Capital Goods (0.1%):
5 Ashok Leyland Ltd. GDR.............. 32
27 India Cements Ltd. GDR.............. 80
14 Larsen & Toubro Ltd. GDR (b)........ 230
--------
342
--------
Metals & Mining (0.0%):
8 Madeco SA ADR....................... 187
--------
Metals (Steel) (0.0%):
20 Steel Authority of India Ltd. GDR
(b)............................... 176
--------
Packaging (0.0%):
9 Cristalerias de Chile ADR........... 203
--------
Pharmaceuticals (0.1%):
5 Laboratorio Chile ADR............... 134
9 Ranbaxy Laboratories Ltd. GDR....... 211
--------
345
--------
Textile Products (0.2%):
22 Arvind Mills Ltd. GDR............... 111
7 Bombay Dye & Manufacturing Co. GDR
(b)............................... 22
1 Century Textile & Industries Ltd.
GDR (b)........................... 66
14 Indian Rayon & Industries Ltd. GDR
(b)............................... 173
8 Raymond Ltd. GDR.................... 33
29 Reliance Industries Ltd. GDR (b).... 676
--------
1,081
--------
Transportation (0.1%):
7 Bajaj Auto Ltd. GDR................. 241
--------
Transportation--Shipping (0.0%):
21 Great Eastern Shipping Co. GDR
(b)............................... 132
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED STATES, CONTINUED:
Utilities--Electric & Gas (0.9%):
12 Chilectra SA ADR.................... $ 335
12 Chilgener SA ADR.................... 333
30 Empresa Nacional Electricidad ADR... 2,490
12 Enersis SA ADR...................... 421
--------
3,579
--------
Total United States................. 9,003
--------
Total Common Stocks 458,017
--------
PREFERRED STOCKS (1.7%):
AUSTRALIA (0.2%):
223 News Corp. Ltd...................... 873
--------
BRAZIL (0.6%):
Banking (0.0%):
14,403 Banco Bradesco SA................... 144
131 Banco Itau SA....................... 75
--------
219
--------
Beverages & Tobacco (0.0%):
91 Companhia Cervejaria Brahma......... 70
--------
Electric Utility (0.0%):
1,504 Cia Energetica de Sao Paolo (b)..... 101
2,673 Companhia Energetica de Minas
Gerais............................ 134
--------
235
--------
Forest Products (0.0%):
90 Sadia-Concordia SA.................. 96
--------
Oil & Gas Exploration, Production & Services (0.2%):
1,919 Petroleo Brasileiro SA.............. 526
--------
Steel (0.0%):
7 Companhia Vale do Rio Doce.......... 149
--------
Telecommunications (0.4%):
7,869 Telecomunicacoes Brasileiras SA..... 1,195
351 Telecomunicacoes de Sao Paolo SA.... 114
--------
1,309
--------
Total Brazil........................ 2,604
--------
GERMANY (0.7%):
Automotive (0.2%):
3 Volkswagen AG....................... 1,488
--------
Business Services (0.3%):
6 SAP AG.............................. 1,269
--------
Textile Products (0.0%):
0 Escada AG........................... 48
--------
Utilities--Electric & Gas (0.2%):
28 RWE AG.............................. 981
--------
Total Germany....................... 3,786
--------
</TABLE>
Continued
70
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
GREECE (0.1%):
Telecommunications (0.1%):
6 Intracom SA......................... $ 255
--------
ITALY (0.1%):
Automotive (0.1%):
168 Fiat SpA............................ 311
--------
Total Preferred Stocks 7,829
--------
RIGHTS (0.0%):
KOREA (0.0%):
2 Samsung Electronics Co. (d)......... 0
--------
SWEDEN (0.0%):
4 Skanska AB, Series B (d)............ 0
--------
Total Rights.............................. 0
--------
U.S. TREASURY OBLIGATIONS (0.0%):
U.S. Treasury Bills (0.0%):
20 7/10/97 (c)......................... 20
25 8/21/97 (c)......................... 25
40 8/28/97 (c)......................... 40
90 9/25/97 (c)......................... 88
--------
Total U.S. Treasury Obligations 173
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
WARRANTS (0.0%):
France (0.0%):
17 Compagnie Generale des Eaux......... $ 10
--------
Total Warrants 10
--------
REPURCHASE AGREEMENTS (2.0%):
United States (2.0%):
9,399 State Street Bank, 5.00%, 7/1/97
(Collateralized by $9,410 U.S.
Treasury Notes, 6.25%, 3/31/99,
market value--$9,593)............. 9,399
--------
Total Repurchase Agreements 9,399
--------
Total (Cost--$384,664) (a) $475,428
========
</TABLE>
Continued
71
<PAGE> 74
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1997
(Amounts in Thousands)
- ------------
Percentages indicated are based on net assets of $472,544.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $2,915. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation.................................................. $112,520
Unrealized depreciation.................................................. (24,671)
--------
Net unrealized appreciation.............................................. $ 87,849
========
</TABLE>
(b) Non-income producing securities.
(c) Serves as collateral for future contracts.
<TABLE>
<CAPTION>
CURRENT
OPENING MARKET
NUMBER OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- ---------- ------------------------- --------- -------
<C> <S> <C> <C>
19 Long Eurotop 100 Index
Future, 9/19/97 $ 3,921 $4,018
34 Long Nikkei 225 Index
Future, 9/11/97 3,944 3,502
$ 7,865 $7,520
======== =======
</TABLE>
(d) Amounts less than 1,000.
ADR American Depository Receipt
GDR Global Depository Receipt
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT CONTRACT MARKET APPRECIATION/
CURRENCY DATE PRICE AMOUNT VALUE VALUE (DEPRECIATION)
-------- -------- --------- -------- -------- ------ -------------
<S> <C> <C> <C> <C> <C> <C>
Long Contracts:
European Currency Unit.............. 9/19/97 $ 0.8798 $ 2,910 $3,308 $3,290 $ (18)
Japanese Yen........................ 9/11/97 111.0300 433,800 3,907 3,825 (82)
------ ------
Total Long Contracts................ $7,215 $7,115 $(100)
======= ====== ======
</TABLE>
See notes to financial statements.
72
<PAGE> 75
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands, except per share amounts)
ASSET ALLOCATION INCOME EQUITY EQUITY INDEX VALUE GROWTH LARGE COMPANY
FUND FUND FUND FUND VALUE FUND
---------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value.................... $168,007 $ 796,415 $713,983 $481,169 $ 664,073
Repurchase agreements, at cost........... 2,640 9,787 31,896 7,683 46,324
-------- --------- -------- -------- ---------
Total (cost $153,456; $449,883; $518,526;
$412,230; and $581,154;
respectively).......................... 170,647 806,202 745,879 488,852 710,397
Cash..................................... -- 1 -- -- 1
Interest and dividends receivable........ 1,190 1,796 888 606 830
Receivable for capital shares issued..... 320 460 1,112 31 39
Receivable from brokers for investments
sold................................... 1,196 1,012 1,488 946 --
Prepaid expenses and other assets........ 7 15 14 1 9
-------- --------- -------- -------- --------
TOTAL ASSETS............................. 173,360 809,486 749,381 490,436 711,276
-------- --------- -------- -------- --------
LIABILITIES:
Dividends payable........................ 427 696 368 248 355
Payable for capital shares redeemed...... 25 60 93 54 1
Payable to brokers for investments
purchased.............................. 2,482 511 485 974 --
Net payable for variation margin on
futures contracts...................... 3 -- 226 60 --
Accrued expenses and other payables:
Investment advisory fees............. 77 486 60 299 431
Administration fees.................. 11 111 22 67 99
12b-1 fees........................... 41 79 152 18 10
Other................................ 44 42 119 56 104
-------- --------- -------- -------- --------
TOTAL LIABILITIES........................ 3,110 1,985 1,525 1,776 1,000
-------- --------- -------- -------- --------
NET ASSETS:
Capital.................................. 139,176 395,370 502,010 380,040 565,003
Undistributed (distributions in excess
of) net investment income.............. 5 (5) -- 12 1
Accumulated undistributed net realized
gains from investment, options and
futures transactions................... 13,861 55,817 18,873 31,654 16,029
Net unrealized appreciation
(depreciation) from investments and
futures................................ 17,208 356,319 226,973 76,954 129,243
-------- --------- -------- -------- --------
NET ASSETS............................... $170,250 $ 807,501 $747,856 $488,660 $ 710,276
======== ========= ======== ======== =========
NET ASSETS:
Fiduciary............................ $ 94,971 $ 649,007 $480,819 $430,837 $ 686,156
Class A.............................. 31,379 78,976 98,338 47,306 14,832
Class B.............................. 43,900 79,518 168,699 10,517 9,288
-------- --------- -------- -------- --------
Total................................ $170,250 $ 807,501 $747,856 $488,660 $ 710,276
======== ========= ======== ======== =========
OUTSTANDING UNITS OF BENEFICIAL INTEREST
(SHARES):
Fiduciary............................ 7,314 29,591 22,055 37,439 46,382
Class A.............................. 2,414 3,606 4,510 4,113 999
Class B.............................. 3,366 3,622 7,737 917 621
-------- --------- -------- -------- --------
Total................................ 13,094 36,819 34,302 42,469 48,002
======== ========= ======== ======== ========
Net Asset Value:
Fiduciary
Offering and redemption price per
share.............................. $ 12.98 $ 21.93 $ 21.80 $ 11.51 $ 14.79
======== ========= ======== ======== =========
Class A
Redemption price per share......... $ 13.00 $ 21.90 $ 21.81 $ 11.50 $ 14.85
======== ========= ======== ======== =========
Maximum sales charge............... 4.50% 4.50% 4.50% 4.50% 4.50%
======== ========= ======== ========= =========
Maximum offering price per share
(100%/(100%-maximum sales charge)
of net asset value adjusted to
nearest cent).................... $ 13.61 $ 22.93 $ 22.84 $ 12.04 $ 15.55
======== ========= ======== ======== =========
Class B
Offering price per share (a)....... $ 13.04 $ 21.95 $ 21.80 $ 11.47 $ 14.95
======== ========= ======== ======== =========
</TABLE>
- ------------
(a) Redemption price per Class B share varies based on length of time shares are
held.
See notes to financial statements.
73
<PAGE> 76
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands, except per share amounts)
GROWTH INTERNATIONAL
DISCIPLINED LARGE COMPANY OPPORTUNITIES GULF SOUTH EQUITY INDEX
VALUE FUND GROWTH FUND FUND GROWTH FUND FUND
---------- ------------- ------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value......................... $579,119 $ 1,374,135 $ 667,590 $ 97,368 $466,029
Repurchase agreements, at cost................ 29,318 28,027 39,449 2,589 9,399
-------- ----------- -------- --------- --------
Total (cost $510,158; $953,962; $611,514;
$75,832; and $384,664; respectively)........ 608,437 1,402,162 707,039 99,957 475,428
Cash.......................................... 1 1 -- 1 1
Foreign currency, at value (cost $392)........ -- -- -- -- 391
Interest and dividends receivable............. 708 1,704 389 56 961
Receivable for capital shares issued.......... 28 668 117 5 93
Receivable from brokers for investments
sold........................................ 1,655 19,244 3,659 1,244 --
Tax reclaim receivable........................ -- -- -- -- 732
Prepaid expenses and other assets............. 10 21 21 5 4
-------- ---------- -------- -------- --------
TOTAL ASSETS.................................. 610,839 1,423,800 711,225 101,268 477,610
-------- ---------- -------- -------- --------
LIABILITIES:
Dividends payable............................. 517 297 -- -- 4,472
Payable for capital shares redeemed........... 39 67 17 59 6
Payable to brokers for investments
purchased................................... 2,993 21,081 5,891 1,665 --
Net payable for variation margin on futures
contracts................................... -- -- -- -- 49
Payable for forward foreign currency
contracts................................... -- -- -- -- 100
Accrued expenses and other payables:
Investment advisory fees.................. 370 841 427 59 209
Administration fees....................... 85 192 98 6 65
12b-1 fees................................ 22 131 39 7 11
Other..................................... 103 149 63 20 154
-------- ----------- -------- --------- --------
TOTAL LIABILITIES............................. 4,129 22,758 6,535 1,816 5,066
-------- ----------- -------- --------- --------
NET ASSETS:
Capital....................................... 464,962 843,217 584,715 70,806 380,858
Undistributed (distributions in excess of) net
investment income........................... 17 45 -- (176) (2,608)
Accumulated undistributed net realized gains
from investment, options, futures and
foreign currency transactions............... 43,452 109,580 24,450 4,697 3,571
Net unrealized appreciation (depreciation)
from investments, futures and translation of
assets and liabilities in foreign
currencies.................................. 98,279 448,200 95,525 24,125 90,723
-------- ----------- -------- --------- --------
NET ASSETS.................................... $606,710 $ 1,401,042 $ 704,690 $ 99,452 $472,544
======== =========== ========= ========= ========
NET ASSETS:
Fiduciary................................. $562,302 $ 1,142,864 $ 623,911 $ 78,318 $449,949
Class A................................... 23,909 125,910 43,370 17,299 12,562
Class B................................... 20,499 132,268 37,409 3,835 10,033
-------- ----------- -------- --------- --------
Total..................................... $606,710 $ 1,401,042 $ 704,690 $ 99,452 $472,544
======== =========== ========= ========= ========
OUTSTANDING UNITS OF BENEFICIAL INTEREST
(SHARES):
Fiduciary................................. 35,922 58,802 32,061 7,159 26,634
Class A................................... 1,525 6,322 2,239 1,581 743
Class B................................... 1,310 6,744 1,988 354 610
-------- ----------- -------- --------- --------
Total..................................... 38,757 71,868 36,288 9,094 27,987
======== =========== ========= ========= ========
Net Asset Value:
Fiduciary--
offering and redemption price per
share................................... $ 15.65 $ 19.44 $ 19.46 $ 10.94 $ 16.89
======== =========== ========= ========= ========
Class A
Redemption price per share.............. $ 15.68 $ 19.92 $ 19.37 $ 10.94 $ 16.92
======== =========== ========= ========= ========
Maximum sales charge.................... 4.50% 4.50% 4.50% 4.50% 4.50%
======== =========== ========= ========= ========
Maximum offering price per share
(100%/(100%--maximum sales charge) of
net asset value adjusted to nearest
cent)................................. $ 16.42 $ 20.86 $ 20.28 $ 11.46 $ 17.72
======== =========== ========= ========= ========
Class B
Offering price per share (a)............ $ 15.64 $ 19.61 $ 18.82 $ 10.84 $ 16.44
======== =========== ========= ========= ========
</TABLE>
- ------------
(a) Redemption price per Class B share varies based on length of time shares are
held.
See notes to financial statements.
74
<PAGE> 77
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
ASSET ALLOCATION INCOME EQUITY EQUITY INDEX VALUE GROWTH LARGE COMPANY
FUND FUND FUND FUND VALUE FUND
---------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................... $ 4,334 $ 2,052 $ 1,218 $ 943 $ 1,683
Dividend income..................... 1,169 13,965 10,484 5,561 17,030
Income from securities lending...... 35 105 103 77 183
-------- --------- -------- -------- ---------
TOTAL INCOME........................ 5,538 16,122 11,805 6,581 18,896
-------- --------- -------- -------- ---------
EXPENSES:
Investment advisory fees............ 827 4,104 1,642 2,379 4,726
Administration fees................. 211 917 905 531 1,056
12b-1 fees (Class A)................ 81 198 203 138 42
12b-1 fees (Class B)................ 283 484 902 70 60
Custodian and accounting fees....... 77 60 221 83 94
Legal and audit fees................ 5 22 21 14 22
Trustees' fees and expenses......... 1 7 5 4 9
Transfer agent fees................. 93 248 311 139 68
Registration and filing fees........ 45 95 92 27 108
Printing costs...................... 19 78 81 48 90
Other............................... 5 15 19 6 6
-------- --------- -------- -------- ---------
Total expenses before waivers....... 1,647 6,228 4,402 3,439 6,281
Less waivers........................ (282) (56) (1,727) (109) (12)
-------- --------- -------- -------- ---------
NET EXPENSES........................ 1,365 6,172 2,675 3,330 6,269
-------- --------- -------- -------- ---------
Net Investment Income............... 4,173 9,950 9,130 3,251 12,627
-------- --------- -------- -------- ---------
REALIZED/UNREALIZED GAINS FROM
INVESTMENTS, OPTIONS AND FUTURES:
Net realized gains from investments,
options and futures
transactions...................... 15,867 63,053 20,871 42,586 17,493
Net change in unrealized
appreciation (depreciation) from
investments, options
and futures....................... 4,463 89,271 140,765 51,518 126,134
-------- --------- -------- -------- ---------
Net realized/unrealized gains from
investments, options and
futures........................... 20,330 152,324 161,636 94,104 143,627
-------- --------- -------- -------- ---------
Change in net assets resulting from
operations........................ $ 24,503 $ 162,274 $170,766 $ 97,355 $ 156,254
======== ========= ======== ======== =========
</TABLE>
See notes to financial statements.
75
<PAGE> 78
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
GROWTH INTERNATIONAL
DISCIPLINED LARGE COMPANY OPPORTUNITIES GULF SOUTH EQUITY INDEX
VALUE FUND GROWTH FUND FUND GROWTH FUND FUND
---------- ------------- ------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................... $ 431 $ 1,314 $ 1,507 $ 237 $ 416
Dividend income.......................... 13,343 16,518 11,811 546 8,560
Income from securities lending........... 153 191 668 69 --
Foreign tax withholding.................. -- -- -- -- (960)
-------- --------- -------- ------- --------
Total Income............................. 13,927 18,023 13,986 852 8,016
-------- --------- -------- ------- --------
EXPENSES:
Investment advisory fees................. 4,129 7,948 4,511 730 2,202
Administration fees...................... 923 1,776 1,008 163 662
12b-1 fees (Class A)..................... 77 332 113 61 38
12b-1 fees (Class B)..................... 180 866 226 32 74
Custodian and accounting fees............ 86 92 154 58 323
Legal and audit fees..................... 26 43 31 5 16
Organization costs....................... -- 1 -- -- 3
Trustees' fees and expenses.............. 8 13 8 2 3
Transfer agent fees...................... 140 492 172 104 76
Registration and filing fees............. 46 118 72 28 62
Printing costs........................... 81 154 87 15 56
Other.................................. 4 26 7 2 27
-------- --------- -------- ------- --------
Total expenses before waivers............ 5,700 11,861 6,389 1,200 3,542
Less waivers............................. (22) (95) (32) (117) (11)
-------- --------- -------- ------- --------
NET EXPENSES............................. 5,678 11,766 6,357 1,083 3,531
-------- --------- -------- ------- --------
Net Investment Income (Loss)............. 8,249 6,257 7,629 (231) 4,485
-------- --------- -------- ------- --------
REALIZED/UNREALIZED GAINS FROM
INVESTMENTS, FUTURES AND FOREIGN
CURRENCIES:
Net realized gains from investments,
options, futures and foreign currency
transactions........................... 59,778 130,961 35,797 10,486 5,054
Net change in unrealized appreciation
(depreciation) from investments,
options, futures and translation of
assets and liabilities in foreign
currencies............................. 36,525 186,164 87,369 1,985 51,395
-------- --------- -------- ------- --------
Net realized/unrealized gains from
investments, futures and foreign
currencies............................. 96,303 317,125 123,166 12,471 56,449
-------- --------- -------- ------- --------
Change in net assets resulting
from operations........................ $104,552 $ 323,382 $ 130,795 $12,240 $ 60,934
======== ========= ========= ======= ========
</TABLE>
See notes to financial statements.
76
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Amounts in Thousands)
ASSET ALLOCATION FUND INCOME EQUITY FUND EQUITY INDEX FUND
-------------------------- -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............. $ 4,173 $ 2,090 $ 9,950 $ 6,029 $ 9,130 $ 6,199
Net realized gains from
investment, options and futures
transactions.................... 15,867 4,144 63,053 8,723 20,871 10,186
Net change in unrealized
appreciation (depreciation) from
investments, options and
futures......................... 4,463 1,631 89,271 35,127 140,765 47,556
--------- --------- --------- --------- --------- ---------
Change in net assets resulting from
operations.......................... 24,503 7,865 162,274 49,879 170,766 63,941
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO FIDUCIARY
SHAREHOLDERS:
From net investment income........ (2,678) (1,520) (8,549) (5,321) (7,178) (5,782)
In excess of net investment
income.......................... (11) -- (14) (25) -- (161)
From net realized gains from
investment transactions......... (2,959) (640) (10,510) (7,457) (3,288) (8,186)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........ (764) (343) (948) (528) (899) (269)
In excess of net investment
income.......................... (3) -- (2) (2) -- (7)
From net realized gains from
investment transactions......... (974) (143) (1,743) (850) (420) (359)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income........ (731) (216) (453) (180) (780) (149)
In excess of net investment
income.......................... (3) -- (1) (1) -- (4)
From net realized gains from
investment transactions......... (1,129) (99) (1,424) (356) (629) (256)
--------- --------- --------- --------- --------- ---------
Change in net assets from shareholder
distributions....................... (9,252) (2,961) (23,644) (14,720) (13,194) (15,173)
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....... 74,038 50,091 113,454 267,682 372,043 199,001
Proceeds from shares issued in
connection with acquisition..... -- -- -- 136,786 -- --
Proceeds from shares issued in
connection with conversion...... 37,254 -- 283,942 -- -- --
Dividends reinvested.............. 6,840 2,534 11,938 6,734 6,593 11,149
Cost of shares redeemed........... (49,880) (16,204) (135,743) (239,261) (180,134) (106,442)
--------- --------- --------- --------- --------- ---------
Change in net assets from share
transactions........................ 68,252 36,421 273,591 171,941 198,502 103,708
--------- --------- --------- --------- --------- ---------
Change in net assets.................. 83,503 41,325 412,221 207,100 356,074 152,476
NET ASSETS:
Beginning of period............... 86,747 45,422 395,280 188,180 391,782 239,306
--------- --------- --------- --------- --------- ---------
End of period..................... $ 170,250 $ 86,747 $ 807,501 $ 395,280 $ 747,856 $ 391,782
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
Issued............................ 6,114 4,377 6,001 13,308 20,262 12,652
Issued in connection with
acquisition..................... -- -- -- 7,895 -- --
Issued in connection with
conversion...................... 3,076 -- 14,913 -- -- --
Reinvested........................ 573 221 656 414 360 721
Redeemed.......................... (4,071) (1,428) (7,141) (11,666) (9,830) (6,924)
--------- --------- --------- --------- --------- ---------
Change in shares...................... 5,692 3,170 14,429 9,951 10,792 6,449
========= ========= ========= ========= ========= =========
Undistributed (distributions in excess
of) net investment income included
in net assets:
End of period..................... $ 5 $ 19 $ (5) $ 13 $ -- $ (405)
========= ========= ========= ========= ========= =========
</TABLE>
See notes to financial statements.
77
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- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Amounts in Thousands)
VALUE GROWTH FUND
-------------------------------------------- LARGE COMPANY VALUE FUND
SEVEN MONTHS --------------------------
YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, NOVEMBER 30, JUNE 30, JUNE 30,
1997 1996(a) 1995(a) 1997 1996
----------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income..................... $ 3,251 $ 1,254 $ 2,459 $ 12,627 $ 12,313
Net realized gains from investment,
options and futures transactions........ 42,586 50,010 17,559 17,493 66,494
Net change in unrealized appreciation
(depreciation) from investments, options
and futures............................. 51,518 (28,550) 30,874 126,134 (17,058)
--------- --------- -------- -------- ---------
Change in net assets resulting from
operations.................................. 97,355 22,714 50,892 156,254 61,749
--------- --------- -------- -------- ---------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS (B):
From net investment income................ (2,906) (569) -- (12,228) (12,140)
In excess of net investment income........ -- (5) -- -- (119)
From net realized gains from investment
transactions............................ (36,353) -- -- (47,388) (46,275)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income................ (316) (680) (2,449) (209) (142)
In excess of net investment income........ -- (5) -- -- (1)
From net realized gains from investment
transactions............................ (5,893) (34,705) (5,515) (904) (631)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................ (16) (5) (6) (69) (32)
In excess of net investment income........ -- -- (3) -- --
From net realized gains from investment
transactions............................ (992) (557) (19) (410) (183)
--------- --------- -------- -------- ---------
Change in net assets from shareholder
distributions............................... (46,476) (36,526) (7,992) (61,208) (59,523)
--------- --------- -------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............... 236,686 68,807 24,259 165,729 285,428
Proceeds from shares issued in connection
with conversion......................... -- -- -- 63,222 --
Dividends reinvested...................... 39,472 27,533 1,480 26,644 32,290
Cost of shares redeemed................... (70,246) (71,560) (21,348) (238,407) (91,619)
--------- --------- -------- -------- ---------
Change in net assets from share
transactions................................ 205,912 24,780 4,391 17,188 226,099
----------- ------------- ------------ ----------- -----------
Change in net assets.......................... 256,791 10,968 47,291 112,234 228,325
NET ASSETS:
Beginning of period....................... 231,869 220,901 173,610 598,042 369,717
--------- --------- -------- -------- ---------
End of period............................. $ 488,660 $ 231,869 $220,901 $ 710,276 $ 598,042
========= ========= ======== ========= =========
SHARE TRANSACTIONS:
Issued.................................... 22,826 1,402 1,628 12,629 22,448
Issued in restatement of net asset value
(c)..................................... -- 7,808 -- -- --
Issued in connection with conversion...... -- -- -- 4,655 --
Reinvested................................ 4,071 1,782 106 2,051 2,670
Redeemed.................................. (6,738) (1,668) (1,398) (17,923) (7,260)
--------- --------- -------- -------- ---------
Change in shares.............................. 20,159 9,324 336 1,412 17,858
========= ========= ======== ========= =========
Undistributed (distributions in excess of) net
investment income included in net assets:
End of period............................. $ 12 $ (12) $ (2) $ 1 $ (114)
========= ========= ======== ========= =========
</TABLE>
- ------------
(a) Upon reorganizing as a fund of The One Group, the Paragon Value Growth Fund
became the Value Growth Fund. Changes in net assets for the periods prior to
March 25, 1996 represent the Paragon Value Growth Fund.
(b) Fiduciary Shares of the Value Growth Fund commenced offering on March 26,
1996 upon conversion of certain Class A Shares to Fiduciary Shares.
(c) Pursuant to its reorganization as a fund of The One Group, the Value Growth
Fund issued additional shares at the close of business March 25, 1996 as a
result of restatement of the net asset values of Class A Shares from $15.26
to $10.00 and Class B Shares from $15.21 to $10.00.
See notes to financial statements.
78
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Amounts in Thousands)
DISCIPLINED VALUE FUND LARGE COMPANY GROWTH FUND GROWTH OPPORTUNITIES FUND
-------------------------- -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............ $ 8,249 $ 10,841 $ 6,257 $ 8,466 $ 7,629 $ 5,803
Net realized gains from
investment, options and futures
transactions................... 59,778 60,286 130,961 29,317 35,797 150,392
Net change in unrealized
appreciation (depreciation)
from investments, options and
futures........................ 36,525 25,630 186,164 85,542 87,369 (49,094)
--------- --------- ---------- --------- --------- --------
Change in net assets resulting from
operations......................... 104,552 96,757 323,382 123,325 130,795 107,101
--------- --------- ---------- --------- --------- --------
DISTRIBUTIONS TO FIDUCIARY
SHAREHOLDERS:
From net investment income....... (7,822) (10,409) (5,746) (7,921) (7,053) (5,538)
In excess of net investment
income......................... -- (84) -- (70) (669) (34)
From net realized gains from
investment transactions........ (53,221) (27,544) (37,414) (7,625) (83,581) (78,544)
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income....... (274) (302) (403) (478) (361) (215)
In excess of net investment
income......................... -- (2) -- (4) (34) (1)
From net realized gains from
investment transactions........ (2,285) (920) (4,265) (558) (4,572) (2,747)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment income....... (89) (131) (23) (67) (215) (51)
In excess of net investment
income......................... -- (1) -- (1) (20) --
From net realized gains from
investment transactions........ (1,855) (708) (3,785) (253) (3,102) (896)
--------- --------- ---------- --------- --------- --------
Change in net assets from shareholder
distributions...................... (65,546) (40,101) (51,636) (16,977) (99,607) (88,026)
--------- --------- ---------- --------- --------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued...... 107,311 146,331 230,983 303,743 291,882 285,336
Proceeds from shares issued in
connection with acquisition.... -- -- -- 36,982 -- --
Proceeds from shares issued in
connection with conversion..... 48,296 -- 289,603 -- -- --
Dividends reinvested............. 32,360 21,701 31,237 9,536 56,517 46,859
Cost of shares redeemed.......... (179,880) (138,383) (299,888) (145,189) (248,384) (205,266)
--------- --------- ---------- --------- --------- --------
Change in net assets from share
transactions....................... 8,087 29,649 251,935 205,072 100,015 126,929
--------- --------- ---------- --------- --------- --------
Change in net assets................. 47,093 86,305 523,681 311,420 131,203 146,004
NET ASSETS:
Beginning of period.............. 559,617 473,312 877,361 565,941 573,487 427,483
--------- --------- ---------- --------- --------- --------
End of period.................... $ 606,710 $ 559,617 $1,401,042 $ 877,361 $ 704,690 $ 573,487
========= ========= ========== ========= ========= =========
SHARE TRANSACTIONS:
Issued........................... 7,390 10,399 14,003 21,224 16,132 15,225
Issued in connection with
acquisition.................... -- -- -- 2,673 -- --
Issued in connection with
conversion..................... 3,333 -- 17,279 -- -- --
Reinvested....................... 2,299 1,573 1,936 684 3,283 2,828
Redeemed......................... (12,355) (9,741) (18,015) (9,886) (13,633) (10,779)
--------- --------- ---------- --------- --------- --------
Change in shares..................... 667 2,231 15,203 14,695 5,782 7,274
========= ========= ========== ========= ========= =========
Undistributed (distributions in
excess of) net investment income
included in net assets:
End of period.................... $ 17 $ (45) $ 45 $ (85) $ 0 $ (47)
========= ========= ========== ========= ========= =========
</TABLE>
See notes to financial statements.
79
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- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERNATIONAL EQUITY INDEX
GULF SOUTH GROWTH FUND FUND
-------------------------------------------- --------------------------
YEAR ENDED SEVEN MONTHS YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, NOVEMBER 30, JUNE 30, JUNE 30,
1997 1996(a) 1995(a) 1997 1996
----------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)............... $ (231) $ (162) $ (329) $ 4,485 $ 2,940
Net realized gains from investment,
options, futures and foreign currency
transactions............................. 10,486 20,607 2,336 5,054 1,467
Net change in unrealized appreciation
(depreciation) from investments, options,
futures and translation of assets and
liabilities in foreign currencies........ 1,985 (8,026) 17,774 51,395 26,748
--------- --------- -------- -------- ---------
Change in net assets resulting from
operations................................... 12,240 12,419 19,781 60,934 31,155
--------- --------- -------- -------- ---------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS (B):
From net investment income................. -- -- (4,346) (2,825)
In excess of net investment income......... -- -- (3,417) (429)
From net realized gains from investment
transactions............................. (8,358) (237) (3,811) (2,147)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income................. -- -- -- (92) (72)
In excess of net investment income......... -- -- -- (73) (11)
From net realized gains from investment
transactions............................. (1,835) (17,443) (1,410) (111) (55)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................. -- -- -- (47) (43)
In excess of net investment income......... -- -- -- (37) (7)
From net realized gains from investment
transactions............................. (302) (393) (8) (72) (33)
--------- --------- -------- -------- ---------
Change in net assets from shareholder
distributions................................ (10,495) (18,073) (1,418) (12,006) (5,622)
--------- --------- -------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................ 14,236 29,495 13,775 191,629 163,944
Dividends reinvested....................... 9,973 14,226 328 2,834 2,501
Cost of shares redeemed.................... (30,774) (31,076) (12,956) (135,282) (54,557)
--------- --------- -------- -------- ---------
Change in net assets from share transactions... (6,565) 12,645 1,147 59,181 111,888
--------- --------- -------- -------- ---------
Change in net assets........................... (4,820) 6,991 19,510 108,109 137,421
NET ASSETS:
Beginning of period........................ 104,272 97,281 77,771 364,435 227,014
--------- --------- -------- -------- ---------
End of period.............................. $ 99,452 $ 104,272 $ 97,281 $ 472,544 $ 364,435
========= ========= ======== ========= =========
SHARE TRANSACTIONS:
Issued..................................... 1,433 620 842 12,777 11,286
Issued in restatement of net asset value
(c)...................................... -- 3,633 -- -- --
Reinvested................................. 1,042 902 22 189 175
Redeemed................................... (3,085) (838) (768) (9,008) (3,742)
--------- --------- -------- -------- ---------
Change in shares............................... (610) 4,317 96 3,958 7,719
========= ========= ======== ========= =========
Undistributed (distributions in excess of) net
investment income included in net assets:
End of period.............................. $ (176) $ -- $ -- $ (2,608) $ 1,395
========= ========= ======== ========= =========
</TABLE>
- ------------
(a) Upon reorganizing as a fund of The One Group, the Paragon Gulf South Growth
Fund became the Gulf South Growth Fund. Capital and share transactions for
the periods prior to March 25, 1996 represent the Paragon Gulf South Growth
Fund.
(b) Fiduciary Shares of the Gulf South Growth Fund commenced offering on March
26, 1996 upon conversion of certain Class A Shares to Fiduciary Shares.
(c) Pursuant to its reorganization as a fund of The One Group, the Gulf South
Growth Fund issued additional shares at the close of business March 25, 1996
as a result of restatement of the net asset values of Class A Shares from
$15.70 to $10.00 and Class B Shares from $15.48 to $10.00.
See notes to financial statements.
80
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1997
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 accompanying financial
statements and financial highlights are those of the Asset Allocation Fund,
the Income Equity Fund, the Equity Index Fund, the Value Growth Fund, the
Large Company Value Fund, the Disciplined Value Fund, the Large Company
Growth Fund, the Growth Opportunities Fund, the Gulf South Growth Fund and
the International Equity Index Fund (individually a "Fund", collectively the
"Funds") only. Subsequent to June 30, 1997, the investment objective of the
Gulf South Growth Fund was changed to permit investments in companies
headquartered or doing business outside of the Southeastern region of the
United States, and to focus the Fund's investments to a greater extent on
investments in the equity securities of small capitalization and emerging
growth companies. As a result, the name of the Fund was changed to the One
Group Small Capitalization Fund. The Funds are each offered in Fiduciary
Class, Class A and Class B Shares. Class A Shares are subject to initial
sales charges, imposed at the time of purchase, in accordance with the Funds'
prospectuses. Certain redemptions of Class B Shares are subject to contingent
deferred sales charges in accordance with the Funds' prospectuses. Each Fund
is a diversified mutual fund except the Gulf South Growth 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. Pursuant to the Agreement, all of the assets and liabilities of each
Paragon Fund transferred to a Fund of The One Group in exchange for shares of
the corresponding Fund of The One Group. Subsequent to the reorganization,
the fiscal period end changed from November 30 to June 30 for the Value
Growth Fund and the Gulf South Growth Fund. Therefore, the prior period
statement of changes in net assets and financial highlights for those Funds
present the results for the seven months ended June 30, 1996.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Asset Allocation Fund To provide total return while preserving capital.
Income Equity Fund Current income through regular payments of dividends with
the secondary goal of achieving capital appreciation by
investing primarily in equity securities.
Equity Index Fund Investment results that correspond to the aggregate price
and dividend performance of the securities in the
Standard & Poor's 500 Composite Stock Price Index.
Value Growth Fund Long-term capital growth and growth of income while, as a
secondary objective, providing a moderate level of
current income.
Large Company Value Fund Capital appreciation with the incidental goal of achieving
current income by investing primarily in equity
securities.
Disciplined Value Fund Capital appreciation with the secondary goal of achieving
current income by investing primarily in equity
securities.
Large Company Growth Fund Long-term capital appreciation and growth of income by
investing primarily in equity securities.
Growth Opportunities Fund Growth of capital and, secondarily, current income, by
investing primarily in equity securities.
</TABLE>
Continued
81
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- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Gulf South Growth Fund Long-term capital growth by investing in a portfolio of
equity securities of small-capitalization, emerging
growth and medium- capitalization companies which are
either headquartered in or whose primary market is in the
southeastern region of the United States.
International Equity Index Fund To provide investment results that correspond to the
aggregate price and dividend performance of the
securities in the Gross Domestic Product Weighted Morgan
Stanley Capital International Europe, Australia and Far
East Index.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Listed securities are valued at the last sales price on the principal
exchange where such securities are traded. Unlisted securities or listed
securities for which last sales prices are not available are valued at
the mean of the latest bid and asked price in the principal market where
such securities are traded. Corporate debt securities and debt securities
of U.S. issuers (other than short-term investments maturing in 60 days or
less), including municipal securities, are valued on the basis of
valuations provided by dealers or by an independent pricing service
approved by the Board of Trustees. Short-term investments maturing in 60
days or less are valued at amortized cost, which approximates market
value. Futures contracts are valued at the settlement price established
each day by the board of trade or exchange on which they are traded.
Options traded on an exchange are valued using the last sale price or, in
the absence of a sale, the last offering price. Options traded
over-the-counter are valued using dealer-supplied valuations. Investments
for which there are no such quotations or valuations are carried at fair
value as determined by the Banc One Investment Advisors Corporation (the
"Advisor") under the direction of the Board of Trustees.
FOREIGN CURRENCY TRANSLATION
Investment valuations, other assets and liabilities initially expressed
in foreign currencies are converted each business day into U.S. dollars
based upon current exchange rates. Purchases and sales of foreign
investments and income and expenses are converted into U.S. dollars based
upon exchange rates prevailing on the respective dates of such
transactions. That portion of realized gains or losses and unrealized
appreciation or depreciation from investments due to fluctuations in
foreign currency exchange rates is not separately disclosed. Such
fluctuations are included with the net realized and unrealized gain or
loss from investments.
FORWARD FOREIGN CURRENCY CONTRACTS
Forward foreign currency contracts are valued at the daily exchange rate
of the underlying currency. Purchases and sales of forward foreign
currency contracts having the same settlement date and broker are
presented net on the Statement of Assets and Liabilities. The forward
foreign currency exchange contracts are adjusted by the daily exchange
rate of the underlying currency and any gains or losses are recorded for
financial statement purposes as unrealized appreciation or depreciation
until the contract settlement date. Gains or
Continued
82
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
losses from the purchase or sale of forward foreign currency contracts having
the same settlement date and broker are recorded as realized on the date of
offset; otherwise gains or losses are recorded as realized on settlement
date.
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements with institutions that the
investment advisor has determined are creditworthy. Each repurchase agreement
is recorded at cost. The Fund requires that the securities purchased in a
repurchase agreement transaction be transferred to the custodian in a manner
sufficient to enable the Fund to obtain those securities in the event of a
counterparty default. The seller, under the repurchase agreement, is required
to maintain the value of the securities held at not less than the repurchase
price, including accrued interest. Repurchase agreements are considered to be
loans under the 1940 Act.
WRITTEN OPTIONS
The Funds may write covered call or put options for which premiums received
are recorded as liabilities and are subsequently adjusted to the current
value of the options written. Premiums received from writing options which
expire are treated as realized gains. Premiums received from writing options,
which are either exercised or closed, are offset against the proceeds
received or amount paid on the transaction to determine realized gains or
losses.
FUTURES CONTRACTS
The Funds may enter into futures contracts for the delayed delivery of
securities at a fixed price at some future date or for the change in the
value of a specified financial index over a predetermined time period. Cash
or securities are deposited with brokers in order to maintain a position.
Subsequent payments made or received by the Fund based on the daily change in
the market value of the position are recorded as unrealized appreciation or
depreciation until the contract is closed out, at which time the appreciation
or depreciation is realized.
INDEXED SECURITIES
The Funds may invest in indexed securities whose value is linked either
directly or inversely to changes in foreign currencies, interest rates,
commodities, indices or other reference instruments. Indexed securities may
be more volatile than the referenced instrument itself, but any loss is
limited to the amount of the original investment.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities
in which they are invested pursuant to agreements requiring that the loan be
continuously secured by cash, U.S. Government or U.S. Government Agency
securities, shares of an investment trust or mutual fund, or any combination
of cash and such securities as collateral equal at all times to at least 100%
of the market value plus accrued interest on the securities lent. The Funds
continue to earn dividends and 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 Advisor to be of good standing and
creditworthy under guidelines established by the Board of Trustees and when,
in the judgment of the Advisor, the consideration which can be earned
currently from such securities loans justifies the attendant risk. Loans are
subject to termination by the
Continued
83
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
Funds or the borrower at any time, and are, therefore, not considered to be
illiquid investments. As of June 30, 1997, the following Funds had securities
with the following market values on loan (amounts in thousands):
<TABLE>
<CAPTION>
MARKET VALUE
OF LOANED
SECURITIES
-------------
<S> <C>
Asset Allocation Fund......................................... $ 27,021
Income Equity Fund............................................ 36,562
Equity Index Fund............................................. 68,647
Value Growth Fund............................................. 50,079
Large Company Value Fund...................................... 67,650
Disciplined Value Fund........................................ 87,543
Large Company Growth Fund..................................... 86,715
Growth Opportunities Fund..................................... 157,149
Gulf South Growth Fund........................................ 12,436
</TABLE>
The loaned securities were fully collateralized by U.S. Government
securities as of June 30, 1997.
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net
realized gains or losses from sales of securities are determined on the
specific identification cost method. Interest income and expenses are
recognized on the accrual basis. Dividends are recorded on the
ex-dividend date. Interest income, including any discount or premium, is
accrued as earned using the effective interest method.
EXPENSES
Expenses directly attributable to a Fund are charged directly to that
Fund, while the expenses which are attributable to more than one Fund of
the Trust are allocated among the respective Funds. Each class of shares
bears its pro-rata portion of expenses attributable to its series, except
that each class separately bears expenses related specifically to that
class, such as distribution fees.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for expiring capital loss
carryforwards, foreign currency transactions, and deferrals of certain
losses. Permanent book and tax basis differences have been reclassified
among the components of net assets.
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each Fund intends to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and
from net realized capital gains sufficient to relieve it from all, or
substantially all, Federal income taxes. Withholding taxes on foreign
dividends have been paid or provided for in accordance with the
applicable country's tax rules and rates.
Continued
84
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- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
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. The Trust is registered to offer forty series
and five classes of shares: Fiduciary, Class A, Class B, Class C and Service.
Currently, the Trust consists of thirty three active funds and, not all funds
can offer all classes of shares. As of June 30, 1997, there were no
shareholders in the Class C or the Service Class of the Funds. Shareholders
are entitled to one vote for each full share held and will vote in the
aggregate and not by class or series, except as otherwise expressly required
by law or when the Board of Trustees has determined that the matter to be
voted on affects only the interest of shareholders of a particular class or
series. The following is a summary of transactions in Fund shares for the
periods ended June 30, 1997 and June 30, 1996:
Continued
85
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- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
ASSET ALLOCATION FUND INCOME EQUITY FUND EQUITY INDEX FUND
-------------------------- -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued........ $ 36,157 $ 20,364 $ 39,671 $ 74,805 $ 193,036 $ 110,800
Proceeds from shares issued in
connection with acquisition...... -- -- -- 128,593 -- --
Proceeds from shares issued in
connection with conversion....... 37,254 -- 283,942 -- -- --
Dividends reinvested............... 3,380 1,810 7,467 5,003 3,889 10,203
Cost of shares redeemed............ (41,096) (13,065) (115,841) (94,484) (148,567) (79,496)
---------- --------- --------- --------- --------- ---------
Change in net assets from
Fiduciary share transactions..... $ 35,695 $ 9,109 $ 215,239 $ 113,917 $ 48,358 $ 41,507
========== ========= ========= ========= ========= =========
CLASS A SHARES:
Proceeds from shares issued........ $ 14,748 $ 14,197 $ 33,483 $ 168,343 $ 72,287 $ 52,581
Proceeds from shares issued in
connection with acquisition...... -- -- -- 6,780 -- --
Dividends reinvested............... 1,663 453 2,597 1,244 1,279 565
Cost of shares redeemed............ (5,587) (2,268) (15,299) (143,907) (25,085) (26,205)
---------- --------- --------- --------- --------- ---------
Change in net assets from
Class A share transactions....... $ 10,824 $ 12,382 $ 20,781 $ 32,460 $ 48,481 $ 26,941
========== ========= ========= ========= ========= =========
CLASS B SHARES:
Proceeds from shares issued........ $ 23,133 $ 15,530 $ 40,300 $ 24,534 $ 106,720 $ 35,620
Proceeds from shares issued in
connection with acquisition...... -- -- -- 1,413 -- --
Dividends reinvested............... 1,797 271 1,874 487 1,425 381
Cost of shares redeemed............ (3,197) (871) (4,603) (870) (6,482) (741)
---------- --------- --------- --------- --------- ---------
Change in net assets from
Class B share transactions....... $ 21,733 $ 14,930 $ 37,571 $ 25,564 $ 101,663 $ 35,260
========== ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued............................. 3,003 1,787 2,121 2,462 10,607 7,069
Issued in connection with
acquisition...................... -- -- -- 7,422 -- --
Issued in connection with
conversion....................... 3,076 -- 14,913 -- -- --
Reinvested......................... 284 159 412 316 215 660
Redeemed........................... (3,348) (1,156) (6,085) (3,267) (8,036) (5,207)
---------- --------- --------- --------- --------- ---------
Change in Fiduciary Shares......... 3,015 790 11,361 6,933 2,786 2,522
========== ========= ========= ========= ========= =========
CLASS A SHARES:
Issued............................. 1,212 1,241 1,768 9,480 3,962 3,351
Issued in connection with
acquisition...................... -- -- -- 392 -- --
Reinvested......................... 139 38 142 72 69 36
Redeemed........................... (460) (198) (814) (8,347) (1,452) (1,670)
---------- --------- --------- --------- --------- ---------
Change in Class A Shares........... 891 1,081 1,096 1,597 2,579 1,717
========== ========= ========= ========= ========= =========
CLASS B SHARES:
Issued............................. 1,899 1,349 2,112 1,366 5,693 2,232
Issued in connection with
acquisition...................... -- -- -- 81 -- --
Reinvested......................... 150 24 102 26 76 25
Redeemed........................... (263) (74) (242) (52) (342) (47)
---------- --------- --------- --------- --------- ---------
Change in Class B Shares........... 1,786 1,299 1,972 1,421 5,427 2,210
========== ========= ========= ========= ========= =========
</TABLE>
Continued
86
<PAGE> 89
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
VALUE GROWTH FUND LARGE COMPANY VALUE FUND
-------------------------------------------- --------------------------
YEAR ENDED SEVEN MONTHS YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, NOVEMBER 30, JUNE 30, JUNE 30,
1997 1996(a) 1995(a) 1997 1996
----------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued................ $ 222,240 $ 51,451 $ 150,998 $ 271,886
Proceeds from shares issued in conversion
from Class A Shares...................... -- 186,991(b) -- --
Proceeds from shares issued in connection
with conversion.......................... -- -- 63,222 --
Dividends reinvested....................... 32,485 12 25,070 31,312
Cost of shares redeemed.................... (59,895) (54,571) (229,727) (86,151)
--------- --------- ---------- ---------
Change in net assets from Fiduciary share
transactions............................. $ 194,830 $ 183,883 $ 9,563 $ 217,047
========= ========= ========== =========
CLASS A SHARES:
Proceeds from shares issued................ $ 9,761 $ 15,771 $ 21,981 $ 10,438 $ 10,239
Dividends reinvested....................... 5,980 26,959 1,452 1,100 760
Cost of shares redeemed.................... (9,421) (16,784) (21,210) (8,010) (5,175)
Cost of shares redeemed in conversion to
Fiduciary Shares......................... -- (186,991)(b) -- -- --
--------- --------- -------- --------- ---------
Change in net assets from Class A share
transactions............................. $ 6,320 $(161,045) $ 2,223 $ 3,528 $ 5,824
========= ========= ======== ========= =========
CLASS B SHARES:
Proceeds from shares issued................ $ 4,685 $ 1,585 $ 2,278 $ 4,293 $ 3,303
Dividends reinvested....................... 1,007 562 28 474 218
Cost of shares redeemed.................... (930) (205) (138) (670) (293)
--------- --------- -------- --------- ---------
Change in net assets from Class B share
transactions............................. $ 4,762 $ 1,942 $ 2,168 $ 4,097 $ 3,228
========= ========= ======== ========= =========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued..................................... 21,444 254 11,519 21,371
Issued in conversion from Class A Shares... -- 18,699(b) -- --
Issued in connection with conversion....... -- -- 4,655 --
Reinvested................................. 3,352 1 1,931 2,593
Redeemed................................... (5,755) (556) (17,266) (6,817)
--------- --------- --------- ---------
Change in Fiduciary Shares................. 19,041 18,398 839 17,147
========= ========= ========= =========
CLASS A SHARES:
Issued..................................... 929 1,026 1,479 793 815
Issued in restatement of net asset
value(c)................................. -- 7,672 -- -- --
Reinvested................................. 615 1,745 104 84 61
Redeemed................................... (893) (1,096) (1,389) (607) (417)
Redeemed in conversion to Fiduciary
Shares................................... -- (18,699)(b) -- -- --
--------- --------- -------- --------- ---------
Change in Class A Shares................... 651 (9,352) 194 270 459
========= ========= ======== ========= =========
CLASS B SHARES:
Issued..................................... 453 122 149 317 262
Issued in restatement of net asset
value(c)................................. -- 136 -- -- --
Reinvested................................. 104 36 2 36 16
Redeemed................................... (90) (16) (9) (50) (26)
--------- --------- -------- --------- ---------
Change in Class B Shares................... 467 278 142 303 252
========= ========= ======== ========= =========
</TABLE>
- ------------
(a) Upon reorganizing as a fund of The One Group, the Paragon Value Growth Fund
became the Value Growth Fund. Capital and share transactions for the periods
prior to March 26, 1996 represent the Paragon Value Growth Fund.
(b) Fiduciary Shares of the Value Growth Fund commenced offering on March 26,
1996 upon conversion of certain Class A Shares to Fiduciary Shares.
(c) Pursuant to its reorganization as a fund of The One Group, the Value Growth
Fund issued additional shares at the close of business March 25, 1996 as a
result of restatement of the net asset values of Class A Shares from $15.26
to $10.00 and Class B Shares from $15.21 to $10.00.
Continued
87
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
DISCIPLINED VALUE FUND LARGE COMPANY GROWTH FUND GROWTH OPPORTUNITIES FUND
-------------------------- -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued..... $ 95,887 $ 131,316 $ 134,662 $ 209,649 $ 216,371 $ 167,309
Proceeds from shares issued in
connection with acquisition... -- -- -- 33,161 -- --
Proceeds from shares issued in
connection with conversion.... 48,296 -- 289,603 -- -- --
Dividends reinvested............ 27,911 19,700 22,758 8,256 48,075 43,247
Cost of shares redeemed......... (168,332) (130,536) (274,724) (132,702) (199,916) (109,584)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Fiduciary share
transactions................ $ 3,762 $ 20,480 $ 172,299 $ 118,364 $ 64,530 $ 100,972
========= ========= ========= ========= ========= =========
CLASS A SHARES:
Proceeds from shares issued..... $ 8,230 $ 10,777 $ 39,340 $ 46,490 $ 54,262 $ 108,378
Proceeds from shares issued in
connection with acquisition... -- -- -- 3,423 -- --
Dividends reinvested............ 2,515 1,180 4,698 904 5,065 2,718
Cost of shares redeemed......... (9,255) (6,449) (17,325) (10,113) (46,273) (95,119)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Class A share transactions.... $ 1,490 $ 5,508 $ 26,713 $ 40,704 $ 13,054 $ 15,977
========= ========= ========= ========= ========= =========
CLASS B SHARES:
Proceeds from shares issued..... $ 3,194 $ 4,238 $ 56,981 $ 47,604 $ 21,249 $ 9,649
Proceeds from shares issued in
connection with acquisition... -- -- -- 398 -- --
Dividends reinvested............ 1,934 821 3,781 376 3,377 894
Cost of shares redeemed......... (2,293) (1,398) (7,839) (2,374) (2,195) (563)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Class B share transactions.... $ 2,835 $ 3,661 $ 52,923 $ 46,004 $ 22,431 $ 9,980
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.......................... 6,612 9,341 8,322 14,892 11,966 8,947
Issued in connection with
acquisition................... -- -- -- 2,403 -- --
Issued in connection with
conversion.................... 3,333 -- 17,279 -- -- --
Reinvested...................... 1,984 1,427 1,418 594 2,790 2,608
Redeemed........................ (11,571) (9,186) (16,537) (9,049) (11,005) (5,714)
--------- --------- --------- --------- --------- ---------
Change in Fiduciary Shares...... 358 1,582 10,482 8,840 3,751 5,841
========= ========= ========= ========= ========= =========
CLASS A SHARES:
Issued.......................... 559 760 2,308 3,131 2,954 5,756
Issued in connection with
acquisition................... -- -- -- 242 -- --
Reinvested...................... 178 86 285 63 293 165
Redeemed........................ (628) (456) (1,016) (674) (2,503) (5,035)
--------- --------- --------- --------- --------- ---------
Change in Class A Shares........ 109 390 1,577 2,762 744 886
========= ========= ========= ========= ========= =========
CLASS B SHARES:
Issued.......................... 219 298 3,373 3,201 1,212 522
Issued in connection with
acquisition................... -- -- -- 28 -- --
Reinvested...................... 137 60 233 27 200 55
Cost of shares redeemed......... (156) (99) (462) (163) (125) (30)
--------- --------- --------- --------- --------- ---------
Change in Class B Shares........ 200 259 3,144 3,093 1,287 547
========= ========= ========= ========= ========= =========
</TABLE>
Continued
88
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERNATIONAL EQUITY INDEX
GULF SOUTH GROWTH FUND FUND
-------------------------------------------- --------------------------
YEAR ENDED SEVEN MONTHS YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, NOVEMBER 30, JUNE 30, JUNE 30,
1997 1996(a) 1995(a) 1997 1996
----------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued............... $ 9,250 $ 20,747 $ 182,120 $ 154,310
Proceeds from shares issued in conversion
from Class A Shares..................... -- 80,504(b) -- --
Dividends reinvested...................... 7,857 12 2,570 2,284
Cost of shares redeemed................... (23,477) (23,690) (129,185) (51,662)
--------- --------- --------- ---------
Change in net assets from Fiduciary share
transactions............................ $ (6,370) $ 77,573 $ 55,505 $ 104,932
========= ========= ========= =========
CLASS A SHARES:
Proceeds from shares issued............... $ 3,550 $ 8,112 $ 12,266 $ 5,122 $ 7,069
Dividends reinvested...................... 1,821 13,830 321 167 135
Cost of shares redeemed................... (6,707) (7,224) (12,837) (4,769) (2,083)
Cost of shares redeemed in conversion to
Fiduciary Shares........................ -- (80,504)(b) -- -- --
--------- --------- -------- --------- ---------
Change in net assets from
Class A share transactions.............. $ (1,336) $ (65,786) $ (250) $ 520 $ 5,121
========= ========= ======== ========= =========
CLASS B SHARES:
Proceeds from shares issued............... $ 1,436 $ 636 $ 1,509 $ 4,387 $ 2,565
Dividends reinvested...................... 295 384 8 97 82
Cost of shares redeemed................... (590) (162) (119) (1,328) (812)
--------- --------- -------- --------- ---------
Change in net assets from
Class B share transactions.............. $ 1,141 $ 858 $ 1,398 $ 3,156 $ 1,835
========= ========= ======== ========= =========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.................................... 933 66 12,143 10,623
Issued in conversion from Class A
Shares.................................. -- 8,050(b) -- --
Reinvested................................ 821 1 171 160
Redeemed.................................. (2,352) (360) (8,601) (3,542)
--------- --------- --------- ---------
Change in Fiduciary Shares................ (598) 7,757 3,713 7,241
========= ========= ========= =========
CLASS A SHARES:
Issued.................................... 354 509 750 337 484
Issued in restatement of net asset value
(c)..................................... -- 3,555 -- -- --
Reinvested................................ 190 876 21 11 10
Redeemed.................................. (673) (466) (761) (317) (143)
Redeemed in conversion to Fiduciary
Shares.................................. -- (8,050)(b) -- -- --
--------- --------- -------- --------- ---------
Change in Class A Shares.................. (129) (3,576) 10 31 351
========= ========= ======== ========= =========
CLASS B SHARES:
Issued.................................... 146 45 92 297 179
Issued in restatement of net asset
value(c)................................ -- 78 -- -- --
Reinvested................................ 31 25 1 7 5
Redeemed.................................. (60) (12) (7) (90) (57)
--------- --------- -------- --------- ---------
Change in Class B Shares.................. 117 136 86 214 127
========= ========= ======== ========= =========
</TABLE>
- ------------
(a) Upon reorganizing as a fund of The One Group, the Paragon Gulf South Growth
Fund became the Gulf South Growth Fund. Capital and share transactions for
the periods prior to March 26, 1996 represent the Paragon Gulf South Growth
Fund.
(b) Fiduciary Shares of the Gulf South Growth Fund commenced offering on March
26, 1996 upon conversion of certain Class A Shares to Fiduciary Shares.
(c) Pursuant to its reorganization as a fund of The One Group, the Gulf South
Growth Fund issued additional shares at the close of business March 26, 1996
as a result of restatement of the net asset values of Class A Shares from
$15.70 to $10.00 and Class B Shares from $15.48 to $10.00.
Continued
89
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and the Advisor are parties to an investment advisory agreement
under which the Advisor is entitled to a fee, computed daily and paid
monthly, at the annual rate of 0.74% of the average net assets of the Income
Equity Fund, the Value Growth Fund, the Large Company Value Fund, the
Disciplined Value Fund, the Large Company Growth Fund, the Growth
Opportunities Fund, and the Gulf South Growth Fund; 0.65% of the average
daily net assets of the Asset Allocation Fund; 0.55% of the average daily net
assets of the International Equity Index Fund; and 0.30% of the average daily
net assets of the Equity Index Fund.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administrative agreement under which the Administrator provides services for
a fee that is computed daily and paid monthly, at an annual rate of 0.20% on
the first $1.5 billion of Trust net assets (excluding the Investor Growth
Fund, the Investor Growth & Income Fund, the Investor Conservative Fund, and
the Investor Balanced Fund (the "Investor Funds") and 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 Investor Funds and the Institutional Money Market Funds); and
0.16% of Trust net assets (excluding the the Investor Funds and the
Institutional Money Market Funds) over $2 billion. The Advisor also serves as
Sub-Administrator to each Fund of the Trust, pursuant to an agreement between
the Administrator and the Advisor. Pursuant to this agreement, the Advisor
performs many of the Administrator's duties, for which the Advisor receives a
fee paid by the Administrator.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A and Class B Shares are subject to distribution and
shareholder services plans (the "Plans") pursuant to Rule 12b-1 under the
1940 Act. As provided in the Plans, the Trust will pay the Distributor a fee
of 0.35% of the average daily net assets of Class A Shares of each of the
Funds and 1.00% of the average daily net assets of the Class B Shares of each
of the Funds. Currently, the Distributor has voluntarily agreed to limit
payments under the Plans to 0.25% of average daily net assets of the Class A
Shares of each Fund. Up to 0.25% of the fees payable under the Plans may be
used as compensation for shareholder services by the Distributor and/or
financial institutions and intermediaries. Fees paid under the Plans may be
applied by the Distributor toward (i) compensation for its services in
connection with distribution assistance or provision of shareholder services;
or (ii) payments to financial institutions and intermediaries such as banks
(including affiliates of the Adviser), brokers, dealers and other
institutions, including the Distributor's affiliates and subsidiaries as
compensation for services or reimbursement of expenses incurred in connection
with distribution assistance or provision of shareholder services. Fiduciary
Class Shares of each Fund are offered without distribution fees. For the year
ended June 30, 1997, the Distributor received $14,356,900 from commissions
earned on sales of Class A Shares and redemptions of Class B Shares, of
which, the Distributor re-allowed $14,210,374 to affiliated broker-dealers of
the Funds.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
Continued
90
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
The Advisor, the Administrator and the Distributor voluntarily agreed to
waive a portion of their fees. For the year ended June 30, 1997, fees in the
following amounts were waived (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT 12b-1 FEES
ADVISORY FEES ADMINISTRATION WAIVED
WAIVED FEES WAIVED CLASS A
------------- --------------- ----------
<S> <C> <C> <C>
Asset Allocation Fund.................................. $ 143 $ 116 $ 23
Income Equity Fund..................................... -- -- 56
Equity Index Fund...................................... 1,094 575 58
Value Growth Fund...................................... 69 -- 40
Large Company Value Fund............................... -- -- 12
Disciplined Value Fund................................. -- -- 22
Large Company Growth Fund.............................. -- -- 95
Growth Opportunities Fund.............................. -- -- 32
Gulf South Growth Fund................................. 30 70 17
International Equity Index Fund........................ -- -- 11
</TABLE>
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the year ended
June 30, 1997 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SECURITIES OTHER SECURITIES
--------------------- -------------------------
PURCHASES SALES PURCHASES SALES
--------- ------- ---------- ----------
<S> <C> <C> <C> <C>
Asset Allocation Fund.......................... $34,825 $12,126 $ 129,077 $ 86,545
Income Equity Fund............................. 282,166 154,124
Equity Index Fund.............................. 208,337 30,475
Value Growth Fund.............................. 520,425 351,633
Large Company Value Fund....................... 467,040 509,396
Disciplined Value Fund......................... 510,514 579,311
Large Company Growth Fund...................... 691,114 603,321
Growth Opportunities Fund...................... 1,780,054 1,764,169
Gulf South Growth Fund......................... 87,315 104,922
International Equity Index Fund................ 88,988 37,767
</TABLE>
6. FINANCIAL INSTRUMENTS:
Investing in financial instruments such as written options, futures, indexed
securities and sales of forward foreign currency contracts involves risk in
excess of the amounts reflected in the Statement of Assets and Liabilities.
The face or contract amounts reflect the extent of the involvement the Funds
have in the particular class of instrument. Risks associated with these
instruments include an imperfect correlation between the movements in the
price of the instruments and the price of the underlying securities and
interest rates, an illiquid secondary market for the instruments or inability
of counterparties to perform under the terms of the contract, and changes in
the value of currency relative to the U.S. dollar. The Funds enter into these
contracts primarily as a means to hedge against adverse fluctuations in the
value of securities.
Continued
91
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
The following is a summary of written option activity for the year ended June
30, 1997 by the Large Company Value Fund and Growth Opportunities Fund
(amounts in thousands):
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES
LARGE COMPANY VALUE FUND FUND
------------------------ ------------------------
SHARES SHARES
SUBJECT SUBJECT
TO CONTRACT PREMIUMS TO CONTRACT PREMIUMS
----------- -------- ----------- --------
<S> <C> <C> <C> <C>
COVERED CALL OPTIONS
Balance at beginning of period...... 590 $ 1,290 -- $ --
Options written..................... 1,093 3,168 360 7,986
Options closed...................... (910) (2,377) (360) (7,986)
Options expired..................... (289) (324) -- --
Options exercised................... (484) (1,757) -- --
-------- ------- -------- -------
Options outstanding at end of
period........................... -- $ -- -- $
======== ======= ======== =======
PUT OPTIONS
Balance at beginning of period...... 90 $ 116 -- $ --
Options written..................... 125 249 -- --
Options expired..................... (85) (149) -- --
Options exercised................... (130) (216) -- --
-------- ------- -------- -------
Options outstanding at end of
period........................... -- $ -- -- $ --
======== ======= ======== =======
</TABLE>
7. CONCENTRATION OF CREDIT RISK:
The Gulf South Growth Fund has a relatively large concentration of securities
invested in companies domiciled in the southeastern region of the United
States. The Fund may be more susceptible to political, social and economic
events adversely affecting the southeastern region of the United States than
funds not so concentrated.
The International Equity Index Fund has a relatively large concentration of
securities invested in companies domiciled in Japan. The Fund may be more
susceptible to the political, social and economic events adversely affecting
the Japanese companies than funds not so concentrated.
8. FEDERAL TAX INFORMATION (UNAUDITED):
The accompanying table below details distributions from long-term capital
gains for the following funds for the fiscal year ended June 30, 1997
(amounts in thousands):
<TABLE>
<CAPTION>
FUND AMOUNT
----------------------------------------------------------------- -------
<S> <C>
Asset Allocation Fund............................................ $ 3,509
Income Equity Fund............................................... 13,420
Equity Index Fund................................................ 3,193
Value Growth Fund................................................ 34,274
Large Company Value Fund......................................... 3,737
Disciplined Value Fund........................................... 32,722
Large Company Growth Fund........................................ 45,464
Growth Opportunities Fund........................................ 11,171
Gulf South Growth Fund........................................... 7,091
International Equity Index Fund.................................. 2,598
</TABLE>
Continued
92
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- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
Currency losses incurred after October 31 within the Fund's fiscal year may
be deferred and treated as occurring on the first day of the following fiscal
year. The following deferred losses will be treated as arising on the first
day of the fiscal year ending June 30, 1998 (amount in thousands):
<TABLE>
<CAPTION>
FUND AMOUNT
------------------------------------------------------------------ ------
<S> <C>
International Equity Index Fund................................... $514
</TABLE>
ELIGIBLE DISTRIBUTIONS:
The Trust designates the following percentage of distributions eligible for
the dividends received deductions for corporations.
<TABLE>
<CAPTION>
FUND PERCENTAGE
---------------------------------------------------------------- ----------
<S> <C>
Asset Allocation Fund........................................... 11.10%
Income Equity Fund.............................................. 98.92%
Equity Index Fund............................................... 83.28%
Value Growth Fund............................................... 20.88%
Large Company Value Fund........................................ 24.86%
Disciplined Value Fund.......................................... 70.64%
Large Company Growth Fund....................................... 100.00%
Growth Opportunities Fund....................................... 6.33%
Gulf South Growth Fund.......................................... 5.88%
International Equity Index Fund................................. 0.00%
</TABLE>
9. REORGANIZATIONS:
The Trust entered an Agreement and Plan of Reorganization ("Reorganization")
with Paragon pursuant to which all of the assets and liabilities of each
Paragon Fund transferred to a Fund of The One Group in exchange for shares of
the corresponding Fund of The One Group. The Paragon Value Equity Income Fund
transferred its assets and liabilities to the Income Equity Fund. The Paragon
Value Growth Fund and the Paragon Gulf South Growth Fund transferred its
assets and liabilities to the Value Growth Fund and Gulf South Growth Fund,
respectively. The Reorganization, which qualified as a tax-free exchange for
Federal income tax purposes, was completed on March 25, 1996 following
approval by shareholders of Paragon at a special shareholder meeting. The
following is a summary of shares outstanding, net assets, net asset value per
share and unrealized appreciation immediately before and after the
Reorganization (amounts in thousands except net asset values):
<TABLE>
<CAPTION>
BEFORE REORGANIZATION AFTER
------------------------------- REORGANIZATION
PARAGON VALUE -------------
EQUITY INCOME INCOME EQUITY INCOME EQUITY
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C>
Shares................................... 8,993 13,779 21,674
Net assets............................... $ 136,786 $ 238,679 $ 375,465
Net asset value:
Fiduciary.............................. $ 17.33 $ 17.33
Class A................................ $ 15.21 $ 17.30 $ 17.30
Class B................................ $ 15.20 $ 17.33 $ 17.33
Unrealized appreciation.................. $ 41,324 $ 71,670 $ 112,994
</TABLE>
Continued
93
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- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
------------------------------- -------------
PARAGON VALUE VALUE GROWTH VALUE GROWTH
GROWTH FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C>
Shares................................... 14,849 -- 22,657
Net assets............................... $226,567 -- $226,567
Net asset value:
Fiduciary.............................. $ 10.00
Class A................................ $ 15.26 $ 10.00*
Class B................................ $ 15.21 $ 10.00*
Unrealized appreciation.................. $ 48,859 -- $ 48,859
</TABLE>
<TABLE>
<CAPTION>
BEFORE REORGANIZATION AFTER
------------------------------- REORGANIZATION
PARAGON GULF -------------
SOUTH GROWTH GULF SOUTH GULF SOUTH
FUND GROWTH FUND GROWTH FUND
------------- ------------- -------------
<S> <C> <C> <C>
Shares................................... 6,379 -- 10,012
Net assets............................... $100,116 -- $100,116
Net asset value:
Fiduciary.............................. $ 10.00
Class A................................ $ 15.70 $ 10.00**
Class B................................ $ 15.48 $ 10.00**
Unrealized appreciation.................. $ 19,678 -- $ 19,678
</TABLE>
* Pursuant to its reorganization as a Fund of the One Group, the Fund issued
additional shares at the close of business March 25, 1996 as a result of
the restatement of the net asset values of Class A Shares from $15.26 to
$10.00 and Class B Shares from $15.21 to $10.00.
** Pursuant to its reorganization as a Fund of the One Group, the Fund issued
additional shares at the close of business March 25, 1996 as a result of
the restatement of the net asset values of Class A Shares from $15.70 to
$10.00 and Class B Shares from $15.48 to $10.00.
On May 22, 1995, the Board of Trustees approved a Plan of Reorganization
pursuant to which the Blue Chip Equity Fund would be merged with and into the
Large Company Growth Fund. On September 1, 1995, the Blue Chip Equity Fund
transferred all of its assets and liabilities to the Large Company Growth
Fund in exchange for shares of the Large Company Growth Fund. The
reorganization, which qualified as a tax-free exchange for Federal income tax
purposes, was approved by the shareholders of the Blue Chip Equity Fund, at a
shareholders' meeting on August 28, 1995. The following is a summary of
shares outstanding, net assets, net asset value per share and unrealized
appreciation immediately before and after the reorganization (amounts in
thousands except net asset values):
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
------------------------------- -------------
BLUE CHIP LARGE COMPANY LARGE COMPANY
EQUITY FUND GROWTH FUND GROWTH FUND
------------- ------------- -------------
<S> <C> <C> <C>
Shares................................... 2,777 44,457 47,130
Net assets............................... $36,983 $ 614,499 $ 651,482
Net asset value:
Fiduciary.............................. $ 13.32 $ 13.80 $ 13.80
Class A................................ $ 13.30 $ 14.17 $ 14.17
Class B................................ $ 13.37 $ 13.96 $ 13.96
Unrealized appreciation.................. $ 7,227 $ 86,413 $ 93,640
</TABLE>
Continued
94
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- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1997
10. CONVERSION OF COMMON TRUST FUNDS:
On January 20, 1997, the net assets of certain common trust funds managed by
the Advisor were exchanged in a tax-free conversion for shares of the
corresponding One Group Funds. The transaction was accounted for by a method
followed for tax purposes in a tax-free business combination. The following
is a summary of shares issued, net assets converted, net asset value per
share issued and unrealized appreciation of assets acquired as of the
conversion date (amounts in thousands except net asset value per share
amounts):
<TABLE>
<CAPTION>
NET ASSET VALUE
SHARES NET ASSETS PER SHARE UNREALIZED
ISSUED CONVERTED ISSUED APPRECIATION
------ ---------- --------------- ------------
<S> <C> <C> <C> <C>
Asset Allocation Fund............. 3,076 $ 37,254 $ 12.11 $ 8,361
Income Equity Fund................ 14,913 $283,942 $ 19.04 $150,438
Large Company Value Fund.......... 4,655 $ 63,222 $ 13.58 $ 7,315
Disciplined Value Fund............ 3,333 $ 48,296 $ 14.49 $ 7,763
Large Company Growth Fund......... 17,279 $289,603 $ 16.76 $102,448
</TABLE>
Continued
95
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
----------------------------------------------------
FIDUCIARY SHARES
----------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------
1997 1996 1995 1994 1993(a)
------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD........................................ $ 11.71 $ 10.73 $ 9.64 $ 10.06 $ 10.00
------- ------- ------- ------- -------
Investment Activities
Net investment income...................................... 0.43 0.41 0.38 0.29 0.07
Net realized and unrealized gains (losses) from
investments.............................................. 1.81 1.16 1.12 (0.38) 0.06
------- ------- ------- ------- -------
Total from Investment Activities......................... 2.24 1.57 1.50 (0.09) 0.13
------- ------- ------- ------- -------
Distributions
From net investment income................................. (0.43) (0.41) (0.37) (0.29) (0.07)
From net realized gains.................................... (0.54) (0.18) (0.04) (0.04) --
------- ------- ------- ------- -------
Total Distributions...................................... (0.97) (0.59) (0.41) (0.33) (0.07)
------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.............................................. $ 12.98 $ 11.71 $ 10.73 $ 9.64 $ 10.06
======= ======= ======= ======= =======
Total Return................................................. 20.16% 14.87% 16.06% (1.01)% 5.45% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......................... $94,971 $50,323 $37,658 $42,751 $30,441
Ratio of expenses to average net assets.................... 0.80% 0.94% 1.06% 1.06% 0.90% (b)
Ratio of net investment income to average net assets....... 3.55% 3.58% 3.72% 2.91% 3.03% (b)
Ratio of expenses to average net assets*................... 1.00% 1.19% 1.31% 1.33% 1.34% (b)
Ratio of net investment income to average net assets*...... 3.35% 3.33% 3.47% 2.64% 2.59% (b)
Portfolio turnover(c)...................................... 80.96% 73.38% 115.36% 56.55% 4.05%
Average commission rate paid(d)............................ $0.0497 $0.0616
</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) Fiduciary Shares commenced offering on April 5, 1993.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(d) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
96
<PAGE> 99
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
--------------------------------------------------------
CLASS A SHARES
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1997 1996 1995 1994 1993(a)
------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....................... $ 11.72 $ 10.74 $ 9.65 $ 10.06 $10.00
------- ------- ------- ------- -------
Investment Activities
Net investment income.................................... 0.39 0.37 0.35 0.27 0.05
Net realized and unrealized gains (losses) from
investments............................................ 1.83 1.16 1.13 (0.38) 0.07
------- ------- ------- ------- -------
Total from Investment Activities....................... 2.22 1.53 1.48 (0.11) 0.12
------- ------- ------- ------- -------
Distributions
From net investment income............................... (0.40) (0.37) (0.34) (0.26) (0.06)
In excess of net investment income....................... -- -- (0.01) -- --
From net realized gains.................................. (0.54) (0.18) (0.04) (0.04) --
------- ------- ------- ------- -------
Total Distributions.................................... (0.94) (0.55) (0.39) (0.30) (0.06)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD............................. $ 13.00 $ 11.72 $ 10.74 $ 9.65 $10.06
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)....................... 19.85% 14.48% 15.76% (1.19)% 5.23%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........................ $31,379 $17,849 $ 4,745 $ 1,691 $ 571
Ratio of expenses to average net assets.................. 1.05% 1.19% 1.31% 1.33% 1.15%(b)
Ratio of net investment income to average net assets..... 3.30% 3.33% 3.57% 2.68% 2.84%(b)
Ratio of expenses to average net assets*................. 1.34% 1.54% 1.66% 1.67% 1.62%(b)
Ratio of net investment income to average net assets*.... 3.01% 2.98% 3.22% 2.34% 237%(b)
Portfolio turnover(c).................................... 80.96% 73.38% 115.36% 56.55% 4.05%
Average commission rate paid(d).......................... $0.0497 $0.0616
</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 Fund commenced operations on April 2, 1993.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(d) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
97
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
-------------------------------------------
CLASS B SHARES
-------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------
1997 1996 1995 1994(a)
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................. $ 11.76 $ 10.76 $ 9.67 $ 10.37
------- ------- ------- -------
Investment Activities
Net investment income.............................................. 0.30 0.28 0.27 0.08
Net realized and unrealized gains (losses) from investments........ 1.83 1.18 1.14 (0.70)
------- ------- ------- -------
Total from Investment Activities................................. 2.13 1.46 1.41 (0.62)
Distributions
From net investment income......................................... (0.31) (0.28) (0.27) (0.08)
In excess of net investment income................................. -- -- (0.01) --
From net realized gains............................................ (0.54) (0.18) (0.04) --
------- ------- ------- -------
Total Distributions.............................................. (0.85) (0.46) (0.32) (0.08)
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD....................................... $ 13.04 $ 11.76 $ 10.76 $ 9.67
======= ======= ======= =======
Total Return (Excludes Sales Charge)................................. 18.90% 13.79% 14.90% (5.98)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................................. $43,900 $18,575 $ 3,019 $ 1,862
Ratio of expenses to average net assets............................ 1.81% 1.94% 2.07% 2.40%(c)
Ratio of net investment income to average net assets............... 2.54% 2.58% 2.77% 1.99%(c)
Ratio of expenses to average net assets*........................... 2.01% 2.19% 2.31% 2.40%(c)
Ratio of net investment income to average net assets*.............. 2.34% 2.33% 2.52% 1.99%(c)
Portfolio turnover(d).............................................. 80.96% 73.38% 115.36% 56.55%
Average commission rate paid(e).................................... $0.0497 $0.0616
</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 Fund commenced operations on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
98
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
--------------------------------------------------------
FIDUCIARY SHARES
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $ 17.65 $ 15.13 $ 13.22 $ 13.21 $ 12.24
-------- -------- -------- -------- --------
Investment Activities
Net investment income................................ 0.36 0.40 0.40 0.39 0.43
Net realized and unrealized gains from investments... 4.89 3.22 2.28 0.01 0.97
-------- -------- -------- -------- --------
Total from Investment Activities................... 5.25 3.62 2.68 0.40 1.40
-------- -------- -------- -------- --------
Distributions
From net investment income........................... (0.36) (0.40) (0.40) (0.39) (0.43)
From net realized gains.............................. (0.61) (0.70) (0.37) -- --
-------- -------- -------- -------- --------
Total Distributions................................ (0.97) (1.10) (0.77) (0.39) (0.43)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD......................... $ 21.93 $ 17.65 $ 15.13 $ 13.22 $ 13.21
======== ======== ======== ======== ========
Total Return........................................... 30.90% 24.53% 21.04% 3.27% 11.56%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................... $649,007 $321,827 $170,919 $198,787 $153,144
Ratio of expenses to average net assets.............. 1.00% 0.98% 1.01% 0.98% 0.90%
Ratio of net investment income to average net
assets............................................. 1.91% 2.44% 2.85% 3.18% 3.37%
Ratio of expenses to average net assets*............. 1.00% 1.01% 1.01% 1.05% 1.07%
Ratio of net investment income to average net
assets*............................................ 1.91% 2.41% 2.85% 3.11% 3.20%
Portfolio turnover(a)................................ 28.18% 14.92% 4.03% 22.69% 7.53%
Average commission rate paid(b)...................... $ 0.0681 $ 0.0673
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
99
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
--------------------------------------------------
CLASS A SHARES
--------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD......................... $ 17.64 $ 15.11 $ 13.20 $ 13.20 $12.23
------- ------- ------- ------- ------
Investment Activities
Net investment income...................................... 0.31 0.38 0.03 0.36 0.40
Net realized and unrealized gains from investments......... 4.87 3.20 2.29 -- 0.98
------- ------- ------- ------- ------
Total from Investment Activities......................... 5.18 3.58 2.32 0.36 1.38
------- ------- ------- ------- ------
Distributions
From net investment income................................. (0.31) (0.35) (0.03) (0.34) (0.41)
In excess of net investment income......................... -- -- (0.01) (0.02) --
From net realized gains.................................... (0.61) (0.70) (0.37) -- --
------- ------- ------- ------- ------
Total Distributions...................................... (0.92) (1.05) (0.41) (0.36) (0.41)
------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD............................... $ 21.90 $ 17.64 $ 15.11 $ 13.20 $13.20
======= ======= ======= ======= ======
Total Return (Excludes Sales Charge)......................... 30.39% 24.23% 20.79% 2.95% 11.38%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......................... $78,976 $44,284 $13,793 $12,054 $9,513
Ratio of expenses to average net assets.................... 1.25% 1.23% 1.26% 1.23% 1.11%
Ratio of net investment income to average net assets....... 1.65% 2.19% 2.61% 3.01% 3.32%
Ratio of expenses to average net assets*................... 1.34% 1.36% 1.36% 1.40% 1.43%
Ratio of net investment income to average net assets*...... 1.56% 2.06% 2.51% 2.84% 3.00%
Portfolio turnover(a)...................................... 28.18% 14.92% 4.03% 22.69% 7.53%
Average commission rate paid(b)............................ $0.0681 $0.0673
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
100
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
--------------------------------------
CLASS B SHARES
--------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------
1997 1996 1995 1994(a)
------- ------- ------ ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................... $ 17.68 $ 15.14 $13.23 $13.83
------- ------- ------ ------
Investment Activities
Net investment income................................................. 0.17 0.24 0.26 0.11
Net realized and unrealized gains (losses) from investments........... 4.89 3.23 2.29 (0.60)
------- ------- ------ ------
Total from Investment Activities.................................... 5.06 3.47 2.55 (0.49)
------- ------- ------ ------
Distributions
From net investment income............................................ (0.18) (0.23) (0.25) (0.11)
In excess of net investment income.................................... -- -- (0.02) --
From net realized gains............................................... (0.61) (0.70) (0.37) --
------- ------- ------ ------
Total Distributions................................................. (0.79) (0.93) (0.64) (0.11)
------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD.......................................... $ 21.95 $ 17.68 $15.14 $13.23
======= ======= ====== ======
Total Return (Excludes Sales Charge).................................... 29.48% 23.41% 19.91% (3.37)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................... $79,518 $29,169 $3,468 $1,714
Ratio of expenses to average net assets............................... 2.00% 1.98% 2.01% 1.95%(c)
Ratio of net investment income to average net assets.................. 0.89% 1.44% 1.88% 2.70%(c)
Ratio of expenses to average net assets*.............................. 2.00% 2.01% 2.02% 1.95%(c)
Ratio of net investment income to average net assets*................. 0.89% 1.41% 1.87% 2.70%(c)
Portfolio turnover(d)................................................. 28.18% 14.92% 4.03% 22.69%
Average commission rate paid (e)...................................... $0.0681 $0.0673
</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 B Shares commenced offering on January 14, 1994.
(b) Not Annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
101
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------
FIDUCIARY SHARES
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..................... $ 16.66 $ 14.03 $ 11.59 $ 11.92 $ 10.92
-------- -------- -------- -------- -------
Investment Activities
Net investment income.................................. 0.35 0.33 0.32 0.29 0.30
Net realized and unrealized gains (losses) from
investments.......................................... 5.27 3.16 2.59 (0.20) 1.13
-------- -------- -------- -------- -------
Total from Investment Activities..................... 5.62 3.49 2.91 0.09 1.43
-------- -------- -------- -------- -------
Distributions
From net investment income............................. (0.33) (0.33) (0.29) (0.29) (0.30)
In excess of net investment income..................... -- (0.01) (0.02) (0.04) --
From net realized gains................................ (0.15) (0.52) (0.16) (0.09) (0.13)
-------- -------- -------- -------- -------
Total Distributions.................................. (0.48) (0.86) (0.47) (0.42) (0.43)
-------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD........................... $ 21.80 $ 16.66 $ 14.03 $ 11.59 $ 11.92
======== ======== ======== ======== =======
Total Return............................................. 34.30% 25.47% 25.79% 0.63% 13.04%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $480,819 $321,058 $234,895 $165,370 $96,446
Ratio of expenses to average net assets................ 0.30% 0.30% 0.33% 0.46% 0.50%
Ratio of net investment income to average net assets... 1.87% 2.18% 2.57% 2.44% 2.46%
Ratio of expenses to average net assets *.............. 0.61% 0.59% 0.66% 0.59% 0.87%
Ratio of net investment income to average net assets
*.................................................... 1.56% 1.89% 2.24% 2.31% 2.09%
Portfolio turnover(a).................................. 5.81% 9.08% 2.71% 11.81% 2.71%
Average commission rate paid(b)........................ $ 0.0449 $ 0.0490
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
102
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------
CLASS A SHARES
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..................... $ 16.67 $ 14.02 $ 11.59 $ 11.91 $ 10.92
-------- -------- -------- -------- -------
Investment Activities
Net investment income.................................. 0.29 0.27 0.29 0.28 0.30
Net realized and unrealized gains (losses) from
investments.......................................... 5.28 3.18 2.58 (0.20) 1.10
-------- -------- -------- -------- -------
Total from Investment Activities..................... 5.57 3.45 2.87 0.08 1.40
-------- -------- -------- -------- -------
Distributions
From net investment income............................. (0.28) (0.27) (0.28) (0.27) (0.28)
In excess of net investment income..................... -- (0.01) -- (0.04) --
From net realized gains................................ (0.15) (0.52) (0.16) (0.09) (0.13)
-------- -------- -------- -------- -------
Total Distributions.................................. (0.43) (0.80) (0.44) (0.40) (0.41)
-------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD........................... $ 21.81 $ 16.67 $ 14.02 $ 11.59 $ 11.91
======== ======== ======== ======== =======
Total Return (Excludes Sales Charge)..................... 33.94% 25.16% 25.43% 0.56% 12.75%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $ 98,338 $ 32,186 $ 3,003 $ 1,416 $ 512
Ratio of expenses to average net assets................ 0.55% 0.55% 0.56% 0.62% 0.52%
Ratio of net investment income to average net assets... 1.59% 1.93% 2.38% 2.37% 2.51%
Ratio of expenses to average net assets *.............. 0.95% 0.94% 1.01% 0.94% 0.99%
Ratio of net investment income to average net assets
*.................................................... 1.19% 1.54% 1.94% 2.05% 2.04%
Portfolio turnover(a).................................. 5.81% 9.08% 2.71% 11.81% 2.71%
Average commission rate paid(b)........................ $ 0.0449 $ 0.0490
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
103
<PAGE> 106
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------
CLASS B SHARES
--------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------
1997 1996 1995 1994(a)
-------- -------- ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............................. $ 16.68 $ 14.05 $11.61 $12.39
-------- -------- ------ ------
Investment Activities
Net investment income........................................... 0.16 0.16 0.18 0.09
Net realized and unrealized gains (losses) from investments..... 5.27 3.16 2.61 (0.78)
-------- -------- ------ ------
Total from Investment Activities.............................. 5.43 3.32 2.79 (0.69)
-------- -------- ------ ------
Distributions
From net investment income...................................... (0.16) (0.16) (0.19) (0.09)
In excess of net investment income.............................. -- (0.01) -- --
From net realized gains......................................... (0.15) (0.52) (0.16) --
-------- -------- ------ ------
Total Distributions........................................... (0.31) (0.69) (0.35) (0.09)
-------- -------- ------ ------
NET ASSET VALUE, END OF PERIOD.................................... $ 21.80 $ 16.68 $14.05 $11.61
======== ======== ====== ======
Total Return (Excludes Sales Charge).............................. 32.93% 24.05% 24.58% (5.57)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................... $168,699 $ 38,538 $1,408 $ 248
Ratio of expenses to average net assets......................... 1.30% 1.30% 1.34% 1.10% (c)
Ratio of net investment income to average net assets............ 0.83% 1.18% 1.60% 2.08% (c)
Ratio of expenses to average net assets*........................ 1.61% 1.59% 1.67% 1.15% (c)
Ratio of net investment income to average net assets*........... 0.52% 0.89% 1.27% 2.03% (c)
Portfolio turnover(d)........................................... 5.81% 9.08% 2.71% 11.81%
Average commission rate paid(e)................................. $ 0.0449 $ 0.0490
</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 B Shares commenced offering on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
104
<PAGE> 107
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE GROWTH FUND
------------------------
FIDUCIARY SHARES
------------------------
MARCH 26,
YEAR ENDED 1996 TO
JUNE 30, JUNE 30,
1997 1996(a)
---------- ---------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................................. $ 10.39 $ 10.00
--------- --------
Investment Activities
Net investment income.............................................................. 0.11 0.03
Net realized and unrealized gains from investments................................. 2.85 0.39
--------- --------
Total from Investment Activities................................................. 2.96 0.42
--------- --------
Distributions
From net investment income......................................................... (0.11) (0.03)
From net realized gains............................................................ (1.73) --
--------- --------
Total Distributions.............................................................. (1.84) (0.03)
--------- --------
NET ASSET VALUE, END OF PERIOD....................................................... $ 11.51 $ 10.39
========= ========
Total Return......................................................................... 31.97% 10.49% (b)(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................................................. $430,837 $191,212
Ratio of expenses to average net assets............................................ 0.98% 0.95% (d)
Ratio of net investment income to average net assets............................... 1.06% 1.13% (d)
Ratio of expenses to average net assets*........................................... 1.00% 1.04% (d)
Ratio of net investment income to average net assets*.............................. 1.04% 1.04% (d)
Portfolio turnover(e).............................................................. 113.17% 65.21%
Average commission rate paid(f).................................................... $ 0.0532 $ 0.0373
</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 date reorganized as a fund of The One Group.
(b) Represents total return for Class A Shares from December 1, 1995 through
March 25, 1996 plus total return for Fiduciary Shares for the period from
March 26, 1996 through June 30, 1996.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(f) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for
only the last seven months of the year.
See notes to financial statements.
105
<PAGE> 108
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE GROWTH FUND
------------------------------------------------------------------------
CLASS A SHARES
------------------------------------------------------------------------
SEVEN
MONTHS
YEAR ENDED ENDED YEAR ENDED NOVEMBER 30,
JUNE 30, JUNE 30, --------------------------------------------
1997 1996(a) 1995 1994 1993 1992
---------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 10.39 $ 11.15 $ 9.00 $ 10.02 $ 9.42 $ 7.80
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment income............................ 0.09 0.94 0.12 0.13 0.11 0.11
Net realized and unrealized gains (losses) from
investments.................................... 2.83 0.08 2.44 (0.56) 0.83 1.75
-------- -------- -------- -------- -------- --------
Total from Investment Activities............... 2.92 1.02 2.56 (0.43) 0.94 1.86
-------- -------- -------- -------- -------- --------
Distributions
From net investment income....................... (0.08) (0.94) (0.12) (0.14) (0.12) (0.10)
In excess of net investment income............... -- (0.01) -- -- -- --
From net realized gains.......................... (1.73) (0.83) (0.29) (0.45) (0.22) (0.14)
-------- -------- -------- -------- -------- --------
Total Distributions............................ (1.81) (1.78) (0.41) (0.59) (0.34) (0.24)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD..................... $ 11.50 $ 10.39 $ 11.15 $ 9.00 $ 10.02 $ 9.42
======== ======== ======== ======== ======== ========
Total Return (Excludes Sales Charge)............... 31.53% 10.40%(b) 29.57% (4.32)% 10.13% 24.27%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................ $ 47,306 $ 35,984 $217,978 $173,198 $171,141 $133,614
Ratio of expenses to average net assets.......... 1.23% 0.97%(c) 0.95% 0.96% 0.96% 0.97%
Ratio of net investment income to average net
assets......................................... 0.83% 0.65%(c) 1.25% 1.34% 1.21% 1.25%
Ratio of expenses to average net assets*......... 1.34% 1.05%(c) 0.95% 0.96% 0.96% 0.97%
Ratio of net investment income to average net
assets*........................................ 0.72% 0.77%(c) 1.25% 1.34% 1.21% 1.25%
Portfolio turnover(d)............................ 113.17% 65.21% 77.00% 53.00% 66.00% 43.00%
Average commission rate paid(e).................. $ 0.0532 $ 0.0373
</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) Upon reorganizing as a fund of The One Group, the Paragon Value Growth Fund
became the Value Growth Fund. Financial highlights for the periods prior to
March 26, 1996 represent the Paragon Value Growth Fund. The per share data
for the periods prior to March 26, 1996 have been restated to reflect the
impact of restatement of net asset value from $15.26 to $10.00 effective
March 26, 1996.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
106
<PAGE> 109
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE GROWTH FUND
------------------------------------------------------
CLASS B SHARES
------------------------------------------------------
SEVEN
MONTHS
ENDED SEPTEMBER 9,
YEAR ENDED JUNE YEAR ENDED 1994 TO
JUNE 30, 30, NOVEMBER 30, NOVEMBER 30,
1997 1996(a) 1995 1994(b)
---------- ------- ------------ -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD...................... $ 10.39 $ 11.16 $ 9.01 $ 9.85
-------- ------- ------ -------
Investment Activities
Net investment income................................... 0.01 0.91 0.05 0.02
Net realized and unrealized gains (losses) from
investments........................................... 2.82 0.07 2.46 (0.84)
-------- ------- ------ -------
Total from Investment Activities...................... 2.83 0.98 2.51 (0.82)
-------- ------- ------ -------
Distributions
From net investment income.............................. (0.02) (0.91) (0.07) (0.02)
In excess of net investment income...................... -- (0.01) -- --
From net realized gains................................. (1.73) (0.83) (0.29) --
-------- ------- ------ -------
Total Distributions................................... (1.75) (1.75) (0.36) (0.02)
-------- ------- ------ -------
NET ASSET VALUE, END OF PERIOD............................ $ 11.47 $ 10.39 $11.16 $ 9.01
======== ======= ====== =======
Total Return (Excludes Sales Charge)...................... 30.52% 9.86%(c) 28.74% (8.31)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $ 10,517 $ 4,673 $2,923 $ 412
Ratio of expenses to average net assets................. 1.98% 1.56%(d) 1.70% 1.71%(d)
Ratio of net investment income to average net assets.... 0.07% 0.13%(d) 0.38% 0.76%(d)
Ratio of expenses to average net assets*................ 2.00% 1.94%(d) 1.70% 1.71%(d)
Ratio of net investment income to average net assets*... 0.05% 0.05%(d) 0.38% 0.76%(d)
Portfolio turnover(e)................................... 113.17% 65.21% 77.00% 53.00%
Average commission rate paid(f)......................... $ 0.0532 $0.0373
</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) Upon reorganizing as a fund of The One Group, the Paragon Value Growth Fund
became the Value Growth Fund. Financial highlights for the periods prior to
March 26, 1996 represent the Paragon Value Growth Fund. The per share data
for the periods prior to March 26, 1996 have been restated to reflect the
impact of restatement of net asset value from $15.21 to $10.00 effective
March 26, 1996.
(b) Class B Shares commenced offering September 9, 1994.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(f) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for
only the last seven months of the year.
See notes to financial statements.
107
<PAGE> 110
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
------------------------------------------------------------
FIDUCIARY SHARES
------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 12.83 $ 12.87 $ 11.34 $ 11.64 $ 11.34
-------- -------- -------- -------- --------
Investment Activities
Net investment income.............................. 0.27 0.31 0.31 0.20 0.18
Net realized and unrealized gains (losses) from
investments...................................... 3.01 1.20 2.18 (0.01) 0.58
-------- -------- -------- -------- --------
Total from Investment Activities................. 3.28 1.51 2.49 0.19 0.76
-------- -------- -------- -------- --------
Distributions
From net investment income......................... (0.26) (0.31) (0.32) (0.19) (0.18)
From net realized gains............................ (1.06) (1.24) (0.64) (0.30) (0.28)
-------- -------- -------- -------- --------
Total Distributions.............................. (1.32) (1.55) (0.96) (0.49) (0.46)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD....................... $ 14.79 $ 12.83 $ 12.87 $ 11.34 $ 11.64
======== ======== ======== ======== ========
Total Return......................................... 27.10% 12.71% 23.42% (1.59)% 6.73%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $686,156 $584,527 $365,376 $169,127 $132,833
Ratio of expenses to average net assets............ 0.97% 0.97% 1.00% 0.95% 0.86%
Ratio of net investment income to average net
assets........................................... 1.99% 2.43% 2.74% 1.72% 1.62%
Ratio of expenses to average net assets*........... 0.97% 0.98% 1.01% 1.02% 1.12%
Ratio of net investment income to average net
assets*.......................................... 1.99% 2.42% 2.73% 1.65% 1.36%
Portfolio turnover(a).............................. 77.05% 186.84% 203.13% 111.72% 51.75%
Average commission rate paid(b).................... $ 0.0575 $ 0.0415
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
108
<PAGE> 111
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
------------------------------------------------------
CLASS A SHARES
------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 12.87 $ 12.89 $ 11.34 $ 11.64 $11.33
------- ------- ------- ------- ------
Investment Activities
Net investment income..................................... 0.23 0.27 0.28 0.17 0.16
Net realized and unrealized gains (losses) from
investments............................................. 3.04 1.22 2.20 (0.01) 0.59
------- ------- ------- ------- ------
Total from Investment Activities........................ 3.27 1.49 2.48 0.16 0.75
------- ------- ------- ------- ------
Distributions
From net investment income................................ (0.23) (0.27) (0.27) (0.16) (0.16)
In excess of net investment income........................ -- -- (0.02) -- --
From net realized gains................................... (1.06) (1.24) (0.64) (0.30) (0.28)
------- ------- ------- ------- ------
Total Distributions..................................... (1.29) (1.51) (0.93) (0.46) (0.44)
------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD.............................. $ 14.85 $ 12.87 $ 12.89 $ 11.34 $11.64
======= ======= ======= ======= ======
Total Return (Excludes Sales Charge)........................ 26.90% 12.40% 22.64% 1.35% 6.64%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $14,832 $ 9,380 $ 3,481 $ 698 $ 451
Ratio of expenses to average net assets................... 1.22% 1.22% 1.25% 1.20% 1.10%
Ratio of net investment income to average net assets...... 1.72% 2.18% 2.52% 1.57% 1.41%
Ratio of expenses to average net assets*.................. 1.31% 1.33% 1.37% 1.37% 1.50%
Ratio of net investment income to average net assets*..... 1.63% 2.07% 2.41% 1.40% 1.01%
Portfolio turnover(a)..................................... 77.05% 186.84% 203.13% 111.72% 51.75%
Average commission rate paid(b)........................... $0.0575 $0.0415
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
109
<PAGE> 112
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
-------------------------------------------
CLASS B SHARES
-------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------
1997 1996 1995 1994(a)
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................ $ 12.98 $ 12.96 $ 11.41 $11.87
------- ------- ------- ------
Investment Activities
Net investment income............................................. 0.14 0.18 0.17 0.05
Net realized and unrealized gains (losses) from investments....... 3.04 1.26 2.19 (0.46)
------- ------- ------- ------
Total from Investment Activities................................ 3.18 1.44 2.36 (0.41)
------- ------- ------- ------
Distributions
From net investment income........................................ (0.15) (0.18) (0.17) (0.05)
From net realized gains........................................... (1.06) (1.24) (0.64) --
------- ------- ------- ------
Total Distributions............................................. (1.21) (1.42) (0.81) (0.05)
------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD...................................... $ 14.95 $ 12.98 $ 12.96 $11.41
======= ======= ======= ======
Total Return (Excludes Sales Charge)................................ 25.86% 11.95% 22.28% 3.48% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................. $ 9,288 $ 4,135 $ 861 $ 182
Ratio of expenses to average net assets........................... 1.97% 1.97% 2.00% 2.00% (c)
Ratio of net investment income to average net assets.............. 0.96% 1.43% 1.74% 1.06% (c)
Ratio of expenses to average net assets*.......................... 1.97% 1.98% 2.01% 2.00% (c)
Ratio of net investment income to average net assets*............. 0.96% 1.42% 1.72% 1.06% (c)
Portfolio turnover(d)............................................. 77.05% 186.84% 203.13% 111.72%
Average commission rate paid(e)................................... $0.0575 $0.0415
</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 B Shares commenced offering on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
110
<PAGE> 113
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DISCIPLINED VALUE FUND
------------------------------------------------------------
FIDUCIARY SHARES
------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 14.69 $ 13.20 $ 11.90 $ 12.76 $ 11.49
-------- -------- -------- -------- --------
Investment Activities
Net investment income.............................. 0.22 0.29 0.28 0.26 0.28
Net realized and unrealized gains from
investments...................................... 2.57 2.27 1.57 0.29 1.27
-------- -------- -------- -------- --------
Total from Investment Activities................. 2.79 2.56 1.85 0.55 1.55
-------- -------- -------- -------- --------
Distributions
From net investment income......................... (0.22) (0.29) (0.27) (0.26) (0.28)
From net realized gains............................ (1.61) (0.78) (0.28) (1.15) --
-------- -------- -------- -------- --------
Total Distributions.............................. (1.83) (1.07) (0.55) (1.41) (0.28)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD....................... $ 15.65 $ 14.69 $ 13.20 $ 11.90 $ 12.76
======== ======== ======== ======== ========
Total Return......................................... 20.56% 20.10% 16.03% 4.04% 13.58%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $562,302 $522,474 $448,530 $418,238 $211,785
Ratio of expenses to average net assets............ 0.98% 0.99% 1.00% 0.93% 0.89%
Ratio of net investment income to average net
assets........................................... 1.52% 2.04% 2.21% 2.14% 2.30%
Ratio of expenses to average net assets*........... 0.98% 1.00% 1.10% 0.98% 1.08%
Ratio of net investment income to average net
assets*.......................................... 1.52% 2.03% 2.11% 2.09% 2.11%
Portfolio turnover(a).............................. 92.66% 90.55% 176.66% 56.33% 108.79%
Average commission rate paid(b).................... $ 0.0601 $ 0.0576
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
111
<PAGE> 114
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DISCIPLINED VALUE FUND
-------------------------------------------------------
CLASS A SHARES
-------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....................... $ 14.72 $ 13.22 $ 11.91 $ 12.75 $ 11.49
------- ------- ------- ------- -------
Investment Activities
Net investment income.................................... 0.19 0.25 0.24 0.24 0.25
Net realized and unrealized gains from investments....... 2.57 2.28 1.59 0.30 1.26
------- ------- ------- ------- -------
Total from Investment Activities....................... 2.76 2.53 1.83 0.54 1.51
------- ------- ------- ------- -------
Distributions
From net investment income............................... (0.19) (0.25) (0.24) (0.23) (0.25)
From net realized gains.................................. (1.61) (0.78) (0.26) (1.10) --
In excess of net realized gains.......................... -- -- (0.02) (0.05) --
------- ------- ------- ------- -------
Total Distributions.................................... (1.80) (1.03) (0.52) (1.38) (0.25)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD............................. $ 15.68 $ 14.72 $ 13.22 $ 11.91 $ 12.75
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)....................... 20.21% 19.80% 15.43% 3.95% 13.27%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........................ $23,909 $20,838 $13,560 $10,448 $ 3,435
Ratio of expenses to average net assets.................. 1.23% 1.24% 1.26% 1.18% 1.12%
Ratio of net investment income to average net assets..... 1.26% 1.79% 1.99% 2.00% 2.06%
Ratio of expenses to average net assets*................. 1.31% 1.35% 1.36% 1.33% 1.46%
Ratio of net investment income to average net assets*.... 1.18% 1.68% 1.89% 1.85% 1.72%
Portfolio turnover(a).................................... 92.66% 90.55% 176.66% 56.33% 108.79%
Average commission rate paid(b).......................... $0.0601 $0.0576
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
112
<PAGE> 115
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DISCIPLINED VALUE FUND
-------------------------------------------
CLASS B
-------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------
1997 1996 1995 1994(a)
------- ------- ------- ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................ $ 14.69 $ 13.19 $ 11.90 $12.60
------- ------- ------- ------
Investment Activities
Net investment income............................................. 0.08 0.15 0.15 0.07
Net realized and unrealized gains (losses) from investments....... 2.55 2.27 1.58 (0.70)
------- ------- ------- ------
Total from Investment Activities................................ 2.63 2.42 1.73 (0.63)
------- ------- ------- ------
Distributions
From net investment income........................................ (0.07) (0.14) (0.15) (0.06)
In excess of net investment income................................ -- -- (0.01) (0.01)
From net realized gains........................................... (1.61) (0.78) (0.28) --
------- ------- ------- ------
Total Distributions............................................. (1.68) (0.92) (0.44) (0.07)
------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD...................................... $ 15.64 $ 14.69 $ 13.19 $11.90
======= ======= ======= ======
Total Return (Excludes Sales Charge)................................ 19.19% 18.93% 14.92% (5.00)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................. $20,499 $16,305 $11,222 $5,356
Ratio of expenses to average net assets........................... 1.98% 1.99% 2.00% 1.96% (c)
Ratio of net investment income to average net assets.............. 0.51% 1.04% 1.26% 1.80% (c)
Ratio of expenses to average net assets*.......................... 1.98% 2.00% 2.01% 1.96% (c)
Ratio of net investment income to average net assets*............. 0.51% 1.03% 1.25% 1.80% (c)
Portfolio turnover(d)............................................. 92.66% 90.55% 176.66% 56.33%
Average commission rate paid(e)................................... $0.0601 $0.0576
</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 B Shares commenced offering on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
113
<PAGE> 116
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
-------------------------------------------------------------
FIDUCIARY SHARES
-------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------
1997 1996 1995 1994 1993
---------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 15.44 $ 13.47 $ 11.32 $ 10.92 $ 9.85
---------- -------- -------- -------- -------
Investment Activities
Net investment income.............................. 0.12 0.18 0.20 0.20 0.23
Net realized and unrealized gains (losses) from
investments...................................... 4.79 2.14 3.04 0.67 1.12
---------- -------- -------- -------- -------
Total from Investment Activities................. 4.91 2.32 3.24 0.87 1.35
---------- -------- -------- -------- -------
Distributions
From net investment income......................... (0.11) (0.18) (0.20) (0.20) (0.23)
From net realized gains............................ (0.80) (0.17) (0.89) (0.27) (0.05)
---------- -------- -------- -------- -------
Total Distributions.............................. (0.91) (0.35) (1.09) (0.47) (0.28)
---------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD....................... $ 19.44 $ 15.44 $ 13.47 $ 11.32 $ 10.92
========== ======== ======== ======== =======
Total Return......................................... 33.11% 17.36% 21.85% 8.04% 13.92%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $1,142,864 $745,986 $531,595 $150,035 $41,317
Ratio of expenses to average net assets............ 0.99% 0.96% 1.00% 0.78% 0.39%
Ratio of net investment income to average net
assets........................................... 0.69% 1.20% 1.72% 1.87% 2.24%
Ratio of expenses to average net assets*........... 0.99% 0.99% 1.00% 1.13% 1.43%
Ratio of net investment income to average net
assets*.......................................... 0.69% 1.17% 1.72% 1.52% 1.21%
Portfolio turnover(a).............................. 57.17% 35.51% 14.22% 9.04% 10.61%
Average commission rate paid(b).................... $ 0.0681 $ 0.0647
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
114
<PAGE> 117
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
---------------------------------------------
CLASS A SHARES
---------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------
1997 1996 1995 1994(a)
-------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............................... $ 15.83 $ 13.83 $ 11.62 $ 11.78
-------- ------- ------- -------
Investment Activities
Net investment income............................................ 0.08 0.14 0.17 0.04
Net realized and unrealized gains (losses) from investments...... 4.88 2.17 3.10 (0.16)
-------- ------- ------- -------
Total from Investment Activities............................... 4.96 2.31 3.27 (0.12)
-------- ------- ------- -------
Distributions
From net investment income....................................... (0.07) (0.14) (0.16) (0.04)
In excess of net investment income............................... -- -- (0.01) --
From net realized gains.......................................... (0.80) (0.17) (0.89) --
-------- ------- ------- -------
Total Distributions............................................ (0.87) (0.31) (1.06) (0.04)
-------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD..................................... 19.92 $ 15.83 $ 13.83 $ 11.62
======== ======= ======= =======
Total Return (Excludes Sales Charge)............................... 32.57% 16.85% 21.52% (1.02)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................ $125,910 $75,114 $27,428 $ 368
Ratio of expenses to average net assets.......................... 1.24% 1.21% 1.26% 1.25% (c)
Ratio of net investment income to average net assets............. 0.44% 0.95% 1.49% 1.78% (c)
Ratio of expenses to average net assets*......................... 1.32% 1.34% 1.36% 1.35% (c)
Ratio of net investment income to average net assets*............ 0.36% 0.82% 1.39% 1.68% (c)
Portfolio turnover(d)............................................ 57.17% 35.51% 14.22% 9.04%
Average commission rate paid(e).................................. $ 0.0681 $0.0647
</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 January 1, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
115
<PAGE> 118
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
---------------------------------------------
CLASS B SHARES
---------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------
1997 1996 1995 1994(a)
-------- ------- ------- ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................ $ 15.63 $ 13.63 $ 11.47 $ 11.57
-------- ------- ------- -------
Investment Activities
Net investment income (loss)...................................... (0.04) 0.05 0.09 0.03
Net realized and unrealized gains (losses) from investments....... 4.82 2.17 3.06 (0.10)
-------- ------- ------- -------
Total from Investment Activities................................ 4.78 2.22 3.15 (0.07)
-------- ------- ------- -------
Distributions
From net investment income........................................ -- (0.05) (0.09) (0.03)
In excess of net investment income................................ -- -- (0.01) --
From net realized gains........................................... (0.80) (0.17) (0.89) --
-------- ------- ------- -------
Total Distributions............................................. (0.80) (0.22) (0.99) (0.03)
-------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...................................... $ 19.61 $ 15.63 $ 13.63 $ 11.47
======== ======= ======= =======
Total Return (Excludes Sales Charge)................................ 31.74% 16.41% 20.65% (0.66)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................. $132,268 $56,261 $ 6,918 $ 334
Ratio of expenses to average net assets........................... 2.00% 1.96% 2.01% 1.99% (c)
Ratio of net investment income (loss) to average net assets....... (0.33)% 0.20% 0.74% 0.96% (c)
Ratio of expenses to average net assets*.......................... 2.00% 1.99% 2.01% 1.99% (c)
Ratio of net investment income (loss) to average net assets*...... (0.33)% 0.17% 0.74% 0.96% (c)
Portfolio turnover(d)............................................. 57.17% 35.51% 14.22% 9.04%
Average commission rate paid(e)................................... $ 0.0681 $0.0647
</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 B Shares commenced offering on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
116
<PAGE> 119
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES FUND
------------------------------------------------------------
FIDUCIARY SHARES
------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 18.81 $ 18.40 $ 15.96 $ 16.96 $ 14.54
-------- -------- -------- -------- --------
Investment Activities
Net investment income.............................. 0.25 0.20 0.06 0.07 0.06
Net realized and unrealized gains (losses) from
investments...................................... 3.59 3.83 2.98 (0.05) 2.99
-------- -------- -------- -------- --------
Total from Investment Activities................. 3.84 4.03 3.04 0.02 3.05
-------- -------- -------- -------- --------
Distributions
From net investment income......................... (0.25) (0.20) (0.06) (0.07) (0.06)
In excess of net investment........................ (0.02) -- -- -- --
From net realized gains............................ (2.92) (3.42) (0.54) (0.95) (0.57)
-------- -------- -------- -------- --------
Total Distributions.............................. (3.19) (3.62) (0.60) (1.02) (0.63)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD....................... $ 19.46 $ 18.81 $ 18.40 $ 15.96 $ 16.96
======== ======== ======== ======== ========
Total Return......................................... 22.75% 24.63% 19.75% (0.16)% 21.36%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $623,911 $532,525 $413,518 $389,567 $232,898
Ratio of expenses to average net assets............ 0.99% 1.00% 0.98% 0.98% 0.89%
Ratio of net investment income to average net
assets........................................... 1.32% 1.15% 0.38% 0.42% 0.41%
Ratio of expenses to average net assets*........... 0.99% 1.01% 0.98% 1.03% 1.11%
Ratio of net investment income to average net
assets*.......................................... 1.32% 1.14% 0.38% 0.37% 0.19%
Portfolio turnover(a).............................. 301.35% 435.30% 132.63% 70.67% 64.64%
Average commission rate paid(b).................... $ 0.0386 $ 0.0451
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(b) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
117
<PAGE> 120
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THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES FUND
-------------------------------------------------------
CLASS A SHARES
-------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....................... $ 18.76 $ 18.36 $ 15.93 $ 16.96 $ 14.54
------- ------- ------- ------- -------
Investment Activities
Net investment income.................................... 0.21 0.17 0.02 0.04 0.03
Net realized and unrealized gains (losses) from
investments............................................ 3.58 3.80 2.98 (0.08) 3.00
------- ------- ------- ------- -------
Total from Investment Activities....................... 3.79 3.97 3.00 (0.04) 3.03
------- ------- ------- ------- -------
Distributions
From net investment income............................... (0.24) (0.15) (0.01) (0.03) (0.04)
In excess of net investment income....................... (0.02) -- (0.02) (0.01) --
From net realized gains.................................. (2.92) (3.42) (0.54) (0.95) (0.57)
------- ------- ------- ------- -------
Total Distributions.................................... (3.18) (3.57) (0.57) (0.99) (0.61)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD............................. $ 19.37 $ 18.76 $ 18.36 $ 15.93 $ 16.96
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)....................... 22.52% 24.32% 19.50% (0.52)% 21.70%(a)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........................ $43,370 $28,052 $11,178 $ 8,097 $ 5,757
Ratio of expenses to average net assets.................. 1.25% 1.25% 1.23% 1.22% 1.11%(a)
Ratio of net investment income to average net assets..... 0.92% 0.90% 0.12% 0.27% 0.25%(a)
Ratio of expenses to average net assets*................. 1.34% 1.36% 1.33% 1.38% 1.48%(a)
Ratio of net investment income (loss) to average net
assets*................................................ 0.83% 0.79% 0.02% 0.11% (0.12)%(a)
Portfolio turnover(b).................................... 301.35% 435.30% 132.63% 70.67% 64.64%
Average commission rate paid(c).......................... $0.0386 $0.0451
</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) Annualized.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(c) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
118
<PAGE> 121
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES FUND
--------------------------------------------
CLASS B SHARES
--------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------
1997 1996 1995 1994(a)
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................. $ 18.43 $ 18.14 $ 15.85 $ 17.44
------- ------- ------- -------
Investment Activities
Net investment income (loss)....................................... 0.11 0.09 (0.07) (0.02)
Net realized and unrealized gains (losses) from investments........ 3.44 3.69 2.90 (1.56)
------- ------- ------- -------
Total from Investment Activities................................. 3.55 3.78 2.83 (1.58)
------- ------- ------- -------
Distributions
From net investment income......................................... (0.22) (0.07) -- (0.01)
In excess of net investment income................................. (0.02) -- -- --
From net realized gains............................................ (2.92) (3.42) (0.54) --
------- ------- ------- -------
Total Distributions.............................................. (3.16) (3.49) (0.54) (0.01)
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD....................................... $ 18.82 $ 18.43 $ 18.14 $ 15.85
======= ======= ======= =======
Total Return (Excludes Sales Charge)................................. 21.73% 23.53% 18.47% (9.07)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................................. $37,409 $12,910 $ 2,787 $ 1,131
Ratio of expenses to average net assets............................ 2.00% 2.00% 1.98% 2.12% (c)
Ratio of net investment income (loss) to average net assets........ 0.01% 0.15% (0.63)% (0.55)% (c)
Ratio of expenses to average net assets*........................... 2.00% 2.01% 1.98% 2.12% (c)
Ratio of net investment income (loss) to average net assets*....... 0.01% 0.14% (0.63)% (0.55)% (c)
Portfolio turnover(d).............................................. 301.35% 435.30% 132.63% 70.67%
Average commission rate paid(e).................................... $0.0386 $0.0451
</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 B Shares commenced offering on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
119
<PAGE> 122
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GULF SOUTH GROWTH FUND
------------------------
FIDUCIARY SHARES
------------------------
MARCH 26,
YEAR ENDED 1996 TO
JUNE 30, JUNE 30,
1997 1996(a)
----------- ---------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................................. $ 10.75 $ 10.00
------- -------
Investment Activities
Net investment income (loss)........................................................ (0.02) --
Net realized and unrealized gains from investments.................................. 1.31 0.78
------- -------
Total from Investment Activities.................................................. 1.29 0.78
------- -------
Distributions
From net realized gains............................................................. (1.10) (0.03)
------- -------
Total Distributions............................................................... (1.10) (0.03)
------- -------
NET ASSET VALUE, END OF PERIOD........................................................ $ 10.94 $ 10.75
======= =======
Total Return.......................................................................... 13.44% 13.39%(b)(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................................... $78,318 $83,371
Ratio of expenses to average net assets............................................. 1.02% 0.96%(d)
Ratio of net investment income (loss) to average net assets......................... (0.16)% (0.16)%(d)
Ratio of expenses to average net assets*............................................ 1.12% 1.05%(d)
Ratio of net investment income (loss) to average net assets*........................ (0.26)% (0.25)%(d)
Portfolio turnover(e)............................................................... 92.01% 59.57%
Average commission rate paid(f)..................................................... $0.0676 $0.0685
</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 date reorganized as a fund of The One Group.
(b) Represents total return for Class A Shares from December 1, 1995 through
March 25, 1996 plus total return for Fiduciary Shares for the period from
March 26, 1996 through June 30, 1996.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(f) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for
only the last seven months of the year.
See notes to financial statements.
120
<PAGE> 123
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GULF SOUTH GROWTH FUND
---------------------------------------------------------------------
CLASS A SHARES
---------------------------------------------------------------------
SEVEN
MONTHS
YEAR ENDED ENDED YEAR ENDED NOVEMBER 30,
JUNE 30, JUNE 30, ----------------------------------------
1997 1996(a) 1995 1994 1993 1992
----------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD......... $ 10.73 $ 11.50 $ 9.36 $ 10.11 $ 9.48 $ 7.38
--------- -------- ------- ------- ------- -------
Investment Activities
Net investment income (loss)............... (0.04) (0.07) (0.04) (0.04) (0.02) 0.01
Net realized and unrealized gains (losses)
from investments......................... 1.35 1.40 2.35 (0.63) 0.88 2.10
--------- -------- ------- ------- ------- -------
Total from Investment Activities......... 1.31 1.33 2.31 (0.67) 0.86 2.11
--------- -------- ------- ------- ------- -------
Distributions
From net investment income................. -- -- -- -- (0.01) (0.01)
From net realized gains.................... (1.10) (2.10) (0.17) (0.08) (0.22) --
--------- -------- ------- ------- ------- -------
Total Distributions...................... (1.10) (2.10) (0.17) (0.08) (0.23) (0.01)
--------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD............... $ 10.94 $ 10.73 $ 11.50 $ 9.36 $ 10.11 $ 9.48
========== ======== ======= ======= ======= =======
Total Return (Excludes Sales Charge)......... 13.52% 12.85%(b) 25.07% (6.66)% 9.10% 28.59%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......... $17,299 $ 18,356 $95,467 $77,540 $74,982 $55,719
Ratio of expenses to average net assets.... 1.27% 1.05%(c) 1.03% 1.00% 1.01% 1.00%
Ratio of net investment income (loss) to
average net assets....................... (0.41)% (0.33)%(c) (0.36)% (0.38)% (0.21)% 0.15%
Ratio of expenses to average net assets*... 1.45% 1.37%(c) 1.03% 1.00% 1.01% 1.00%
Ratio of net investment income (loss) to
average net assets*...................... (0.59)% (0.35)%(c) (0.36)% (0.30)% (0.21)% 0.15%
Portfolio turnover(d)...................... 92.01% 59.57% 65.00% 51.00% 59.00% 42.00%
Average commission rate paid(e)............ $0.0676 $ 0.0685
</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) Upon reorganizing as a fund of The One Group, the Paragon Gulf South Growth
Fund became the Gulf South Growth Fund. Financial highlights for the periods
prior to March 26, 1996 represent the Paragon Gulf South Growth Fund. The
per share data for the periods prior to March 26, 1996 have been restated to
reflect the impact of restatement of net asset value from $15.70 to $10.00
effective March 26, 1996.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
121
<PAGE> 124
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GULF SOUTH GROWTH FUND
-------------------------------------------------------------
CLASS B SHARES
-------------------------------------------------------------
SEVEN
MONTHS SEPTEMBER 12,
YEAR ENDED ENDED YEAR ENDED 1994 TO
JUNE 30, JUNE 30, NOVEMBER 30, NOVEMBER 30,
1997 1996(a) 1995 1994(b)
----------- --------- ------------- --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 10.72 $ 11.56 $ 9.47 $ 10.40
------- ------- ------- --------
Investment Activities
Net investment loss................................ (0.10) (0.06) (0.07) (0.01)
Net realized and unrealized gains (losses)
from investments................................. 1.32 1.35 2.33 (0.92)
------- ------- ------- --------
Total from Investment Activities................. 1.22 1.29 2.26 (0.93)
------- ------- ------- --------
Distributions
From net realized gains............................ (1.10) (2.13) (0.17) --
------- ------- ------- --------
Total Distributions.............................. (1.10) (2.13) (0.17) --
------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD....................... $ 10.84 $ 10.72 $ 11.56 $ 9.47
======= ======= ======= ========
Total Return (Excludes Sales Charge)................. 12.74% 12.47%(c) 24.21% (9.08)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $ 3,835 $ 2,545 $ 1,814 $ 231
Ratio of expenses to average net assets............ 2.02% 1.87%(d) 1.78% 1.75%(d)
Ratio of net investment income (loss) to average
net assets....................................... (1.16)% (1.10)%(d) (1.16)% (0.90)%(d)
Ratio of expenses to average net assets*........... 2.12% 1.92%(d) 1.78% 1.75%(d)
Ratio of net investment income (loss) to average
net assets*...................................... (1.26)% (1.15)%(d) (1.16)% (0.90)%(d)
Portfolio turnover(e).............................. 92.01% 59.57% 65.00% 51.00%
Average commission rate paid(f).................... $0.0676 $0.0685
</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) Upon reorganizing as a fund of The One Group, the Paragon Gulf South Growth
Fund became the Gulf South Growth Fund. Financial highlights for the periods
prior to March 26, 1996 represent the Paragon Gulf South Growth Fund. The
per share data for the periods prior to March 26, 1996 have been restated to
reflect the impact of restatement of net asset value from $15.48 to $10.00
effective March 26, 1996.
(b) Class B Shares commenced offering September 12, 1994.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(f) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for
only the last seven months of the year.
See notes to financial statements.
122
<PAGE> 125
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX FUND
-----------------------------------------------------------
FIDUCIARY SHARES
-----------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------
1997 1996 1995 1994 1993(a)
-------- -------- -------- -------- ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................. $ 15.17 $ 13.93 $ 13.46 $ 11.80 $10.00
-------- -------- -------- -------- ------
Investment Activities
Net investment income............................... 0.15 0.11 0.13 0.11 0.06
Net realized and unrealized gains from
investments....................................... 2.02 1.43 0.46 1.68 1.75
-------- -------- -------- -------- ------
Total from Investment Activities.................. 2.17 1.54 0.59 1.79 1.81
-------- -------- -------- -------- ------
Distributions
From net investment income.......................... (0.17) (0.16) (0.08) (0.11) (0.01)
In excess of net investment income.................. (0.13) (0.02) -- -- --
From net realized gains............................. (0.15) (0.12) (0.04) (0.01) --
In excess of net realized gains..................... -- -- -- (0.01) --
-------- -------- -------- -------- ------
Total Distributions............................... (0.45) (0.30) (0.12) (0.13) (0.01)
-------- -------- -------- -------- ------
NET ASSET VALUE, END OF PERIOD........................ $ 16.89 $ 15.17 $ 13.93 $ 13.46 $11.80
======== ======== ======== ======== ======
Total Return.......................................... 14.64% 11.22% 4.20% 15.44% 26.96% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................... $449,949 $347,790 $218,299 $145,640 $35,384
Ratio of expenses to average net assets............. 0.86% 0.97% 1.04% 1.02% 1.22% (b)
Ratio of net investment income to average net
assets............................................ 1.00% 1.04% 1.25% 1.27% 1.37% (b)
Ratio of expenses to average net assets*............ 0.86% 1.00% 1.04% 1.02% 2.34% (b)
Ratio of net investment income to average net
assets*........................................... 1.00% 1.01% 1.25% 1.27% 0.25% (b)
Portfolio turnover(c)............................... 9.61% 6.28% 4.67% 7.74% 3.10%
Average commission rate paid(d)..................... $ 0.0034 $ 0.0022
</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) Fiduciary Shares commenced offering on April 5, 1993.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(d) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
123
<PAGE> 126
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX FUND
------------------------------------------------------
CLASS A SHARES
------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------
1997 1996 1995 1994 1993(a)
------- ------- ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 15.16 $ 13.92 $13.49 $11.80 $11.74
------- ------- ------ ------ -------
Investment Activities
Net investment income..................................... 0.11 0.14 0.12 0.09 0.02
Net realized and unrealized gains from investments........ 2.03 1.40 0.43 1.67 0.04
------- ------- ------ ------ -------
Total from Investment Activities........................ 2.14 1.54 0.55 1.76 0.06
------- ------- ------ ------ -------
Distributions
From net investment income................................ (0.13) (0.16) (0.08) (0.05) --
In excess of net investment income........................ (0.10) (0.02) -- -- --
From net realized gains................................... (0.15) (0.12) (0.04) (0.02) --
------- ------- ------ ------ -------
Total Distributions..................................... (0.38) (0.30) (0.12) (0.07) --
------- ------- ------ ------ -------
NET ASSET VALUE, END OF PERIOD.............................. $ 16.92 $ 15.16 $13.92 $13.49 $11.80
======= ======= ====== ====== =======
Total Return (Excludes Sales Charge)........................ 14.31% 11.20% 3.87% 15.18% 2.87%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $12,562 $10,789 $5,028 $2,395 $ 153
Ratio of expenses to average net assets................... 1.11% 1.22% 1.28% 1.26% 1.47%(b)
Ratio of net investment income to average net assets...... 0.73% 0.79% 1.09% 1.15% 2.10%(b)
Ratio of expenses to average net assets*.................. 1.19% 1.35% 1.38% 1.36% 2.35%(b)
Ratio of net investment income to average net assets*..... 0.65% 0.66% 0.99% 1.05% 1.22%(b)
Portfolio turnover(c)..................................... 9.61% 6.28% 4.67% 7.74% 3.10%
Average commission rate paid(d)........................... $0.0034 $0.0022
</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 Fund commenced operations on April 2, 1993.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(d) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
124
<PAGE> 127
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX FUND
------------------------------------------
CLASS B SHARES
------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------
1997 1996 1995 1994(a)
------- ------- ------ ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................. $ 14.79 $ 13.73 $13.40 $13.00
------- ------- ------ ------
Investment Activities
Net investment income............................................... 0.09 0.03 0.03 0.06
Net realized and unrealized gains from investments.................. 1.86 1.32 0.41 0.34
------- ------- ------ ------
Total from Investment Activities.................................. 1.95 1.35 0.44 0.40
------- ------- ------ ------
Distributions
From net investment income.......................................... (0.08) (0.15) (0.07) --
In excess of net investment income.................................. (0.07) (0.02) -- --
From net realized gains............................................. (0.15) (0.12) (0.04) --
------- ------- ------ ------
Total Distributions............................................... (0.30) (0.29) (0.11) --
------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD........................................ $ 16.44 $ 14.79 $13.73 $13.40
======= ======= ====== ======
Total Return (Excludes Sales Charge).................................. 13.37% 9.97% 3.17% 3.23% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................... $10,033 $ 5,856 $3,687 $1,872
Ratio of expenses to average net assets............................. 1.86% 1.97% 2.04% 2.00% (c)
Ratio of net investment income to average net assets................ 0.08% 0.04% 0.25% 1.37% (c)
Ratio of expenses to average net assets*............................ 1.86% 2.00% 2.04% 2.00% (c)
Ratio of net investment income to average net assets*............... 0.08% 0.01% 0.25% 1.37% (c)
Portfolio turnover(d)............................................... 9.61% 6.28% 4.67% 7.74%
Average commission rate paid(e)..................................... $0.0034 $0.0022
</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 B Shares commenced offering on January 14, 1994.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on portfolio security transactions divided by the total number of
portfolio shares purchased and sold for which commissions were charged. For
the year ended June 30, 1996, the average commission was calculated for only
the last seven months of the year.
See notes to financial statements.
125
<PAGE> 128
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
To the Shareholders and Board of Trustees of
The One Group Family of Mutual Funds:
We have audited the accompanying statements of assets and liabilities of the
Asset Allocation Fund, the Income Equity Fund, the Equity Index Fund, the Value
Growth Fund, the Large Company Value Fund, the Disciplined Value Fund, the Large
Company Growth Fund, the Growth Opportunities Fund, the Gulf South Growth Fund
and the International Equity Index Fund (ten series of The One Group Family of
Mutual Funds), including the schedules of portfolio investments, as of June 30,
1997, and the related statements of operations, statements of changes in net
assets and the financial highlights for each period presented except as noted in
the next paragraph. These financial statements and financial highlights are the
responsibility of The One Group Family of Mutual Funds' management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
The Large Company Growth Fund's financial highlights for the year ended June 30,
1993 were audited by other auditors, whose report dated August 25, 1993
expressed an unqualified opinion on the financial highlights. The Value Growth
Fund's statement of changes in net asset for the year ended November 30, 1995
and the financial highlights for each of the four years in the period ended
November 30, 1995 were audited by other auditors, whose report dated January 19,
1996 expressed an unqualified opinion on those financial statements and
financial highlights. The Gulf South Growth Fund's statement of changes in net
assets for the year ended November 30, 1995 and the financial highlights for
each of the four years in the period ended November 30, 1995 were audited by
other auditors, whose report dated January 19, 1996 expressed an unqualified
opinion on those financial statements and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of June 30, 1997 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above, except as noted in the second paragraph present fairly, in all material
respects, the financial position of the Asset Allocation Fund, the Income Equity
Fund, the Equity Index Fund, the Value Growth Fund, the Large Company Value
Fund, the Disciplined Value Fund, the Large Company Growth Fund, the Growth
Opportunities Fund, the Gulf South Growth Fund and the International Equity
Index Fund as of June 30, 1997, the results of their operations, the changes in
their net assets and the financial highlights for the periods indicated herein,
in conformity with generally accepted accounting principles.
Columbus, Ohio Coopers & Lybrand L.L.P.
August 22, 1997
126
<PAGE> 129
Important Customer Information.
Please Read:
Shares of The One Group:
* are not deposits or obligations
of, or guaranteed by, BANC ONE
CORPORATION or its affiliates
* are not insured or guaranteed by the
FDIC or by any other governmental
agency or government-sponsored
agency of the federal government
or any state
* are subject to investment risks,
including possible loss of the
principal amount invested.
Banc One Investment Advisors
Corporation, a registered investment
advisor and an indirect subsidiary of
BANC ONE CORPORATION, serves
as an investment advisor to The One
Group, for which it receives advisory
fees. The One Group is distributed by
The One Group Services Company,
3435 Stelzer Road, Columbus,
Ohio 43219, which is not affiliated
with BANC ONE CORPORATION and
is not a bank. Contact us at our web
site address: www.onegroup.com or
e-mail us at [email protected].
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.
BANC ONE
INVESTMENT [LOGO]
ADVISORS
CORPORATION
TOG-F-033-AN(6/97)
