<PAGE>
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Table of Contents
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1996
<TABLE>
<S> <C>
Report From Your Investment Advisor........................................ 2
Schedules of Portfolio Investments......................................... 5
Statements of Assets and Liabilities....................................... 15
Statements of Operations................................................... 16
Statements of Changes in Net Assets........................................ 17
Notes to Financial Statements.............................................. 18
Financial Highlights....................................................... 25
</TABLE>
1 ----
<PAGE>
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Report From Your Investment Advisor
- -------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1996
WE ARE PLEASED TO PRESENT THIS SEMI-ANNUAL REPORT FOR THE ONE
GROUP-REGISTERED TRADEMARK- 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, THROUGH DECEMBER 31, 1996.
DEAR VALUED SHAREHOLDERS:
Thank you for your continued support of The One Group Family of Mutual Funds.
1996 proved to be a rewarding year for stock investors, and a challenging one
for bond investors. Stocks maintained the strength they exhibited during 1995
and posted impressive double-digit returns. Bond returns, on the other hand,
slipped back into the low single digits, as the market was plagued with
volatility.
As strong as the stock market's returns were during 1996, and as disappointing
as the bond market's results were, it's important to keep performance--whether
good or bad--in perspective. Returns in any single year shouldn't influence your
long-term investment strategy.
It's highly unlikely that, over the long term, the stock market will remain as
strong as it has been during the past two years, or that the bond market will
remain as volatile. While returns may fluctuate over the short term, over the
long term the markets tend to adjust for periodic ups and downs so that
performance evens out.
These market dynamics underscore the importance of three key investment
strategies:
- - MAINTAINING A LONG-TERM PERSPECTIVE. Don't let short-term returns distract you
from your long-term strategy. Let time work for your investment portfolio.
After all, it's time, not timing, that allows investments to realize their
full potential.
- - ASSET ALLOCATION. Spreading your investment dollars among stocks, bonds and
money market securities according to your goals, time frame and risk tolerance
exposes your money to opportunities from each major asset class.
- - DIVERSIFICATION. Investing in a variety of securities within each asset class
may enhance your returns while helping to reduce overall portfolio risk.
We believe that following these principles is critical to long-term investment
success. Nevertheless, it sometimes is difficult for individual investors to
implement these strategies in their own investment plans. The One Group is
always working on new ways to make investing easy and convenient. And now,
taking advantage of these investment techniques has never been simpler.
Four new funds--THE ONE GROUP INVESTOR FUNDS-- take the time and complexity out
of allocating your assets and assembling a diversified investment portfolio.
They offer a convenient way to enjoy asset allocation and broad diversification
from ONE investment.
Each of The One Group Investor Funds is targeted toward a specific investment
objective, such as growth, income or a combination of the two. In striving to
meet these objectives, the investment professionals managing The One Group
Investor Funds invest in a combination of mutual funds from The One Group
family. So, by investing in the SINGLE One Group Investor Fund best suited to
your goals, you enjoy instant diversification and professional asset allocation.
The One Group Investor Funds are suitable for various investment goals,
including one of the most important--retirement. Because they offer a single
source for asset allocation and broad diversification, they may be ideal
investments for THE ONE GROUP IRA.
The One Group IRA can be one of the smartest ways to save for retirement:
- - All workers AND non-working spouses may contribute up to $2,000 A YEAR.
- - You accumulate TAX-DEFERRED EARNINGS during your working years.
- - For certain investors, some or all of the $2,000 annual IRA contribution limit
may be TAX-DEDUCTIBLE.
There's still time to make your IRA investment for the 1996 income tax year; the
deadline is April 15. All it takes is a minimum of $25 to set up your IRA, as
long as you sign up for systematic investing. Otherwise, the minimum is $250.
And, if you maintain a balance of at least $1,000, The One Group will waive the
annual IRA maintenance fee.
- ----2
<PAGE>
- --------------------------------------------------------------------------------
Report From Your Investment Advisor, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1996
We invite you to learn more about The One Group Investor Funds and The One Group
IRA by calling 1-800-480-4111, or by visiting The One Group web site at
WWW.ONEGROUP.COM. From here, you quickly can access a variety of fund-related
information, including prices, performance updates, fund manager biographies and
more. In addition, you will find an interactive asset allocation tool with which
you can determine your investor profile and select an appropriate model
portfolio.
Thank you again for the confidence you have shown in The One Group Family of
Mutual Funds. Your ongoing support is appreciated as The One Group continues to
make investing rewarding and convenient.
Sincerely,
/s/ David J. Kundert
David J. Kundert
PRESIDENT & CEO
BANC ONE INVESTMENT ADVISORS CORPORATION,
INVESTMENT ADVISOR TO THE ONE GROUP
[DAVID J. KUNDERT PHOTO]
- ---------
FOR MORE COMPLETE INFORMATION ABOUT THE ONE GROUP INVESTOR FUNDS AND THE ONE
GROUP IRA, INCLUDING CHARGES AND EXPENSES, YOU MAY OBTAIN A PROSPECTUS BY
CALLING THE ONE GROUP AT 1-800-480-4111. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE YOU INVEST.
3 ----
<PAGE>
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Report From Your Investment Advisor, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1996
ECONOMY STAYS ON STEADY COURSE
Economic growth during the second half of 1996 started out on unstable ground,
with inventory accumulation representing approximately 75% of the third
quarter's 2.1% GDP growth. When growth is backed by a surge in inventories, it
is not sustainable. During the fourth quarter, though, a decline in the level of
reported inventories revealed virtually no contribution from this component
toward the 4.7% overall growth rate. This demonstrated that the composition of
growth as the year ended was much more solid than it was in the third quarter.
EXPECTED FED ACTION DOESN'T MATERIALIZE
While short-term interest rates, such as the three-month Treasury bill rate,
seem to have remained relatively stable from the beginning of the six-month
period, when they were 5.23%, to the end, when they were 5.17%, there was, in
fact, significant volatility in between. After a surge in GDP growth in the
second quarter--to 4.7%-- the bond market became convinced that a tightening by
the Federal Reserve was necessary, causing rates on the two-year Treasury note
to climb as high as 6.43%. The Fed, however, left its monetary policy unchanged,
and short-term rates came back down.
With regard to adjusting monetary policy, the Fed remained idle during the
second half of the year. In fact, the only Fed action for all of 1996 came on
Jan. 31, when it cut the federal funds rate by 0.25%. Nevertheless, the Fed
continued to nurture economic growth during the second half, as it was able to
largely ignore the tightness of the labor market and increased labor costs that
characterized the period. The Fed's current philosophy continues to be somewhat
preemptive in nature, but not as preemptive as it was in 1994, when it first
introduced this philosophy to the financial markets.
LONG-TERM RATES DECLINE
Investor concerns about stronger economic growth diminished during the final few
months of the year, as the market became more hopeful that economic growth
eventually would slow down. As a result, long-term interest rates toward the
latter half of the year proceeded to decline even in the wake of higher
inflation.
Consumer prices slowly increased during the period, ending the year up 3.3% on a
year-over-year basis. Prices at the beginning of the six-month period were
rising only 2.8% on a year-over-year basis. The decline in long-term rates
occurred on the bond market's expectation that inflation in 1997 would be a lot
more subdued, and slower economic growth would take some wind out of
inflationary pressures.
The decline in long-term interest rates during the second half of the year
continued to add overall support to the country's stock market. In addition, it
may have offered the housing sector a helping hand. In November, for example,
housing starts posted a gain of 9.3%, which represented the highest monthly
growth rate since July 1995, when housing starts were up 11.5%. Nevertheless, by
year-end, we observed that poor weather in the West caused December's housing
starts to plunge by 12.2%.
WHAT'S IN STORE FOR 1997
After growing at a rate of 2.5% in 1996, we think the economy may slow down in
1997, as growth softens. Some of this slowdown is likely to be caused by a
continued dampening of growth in consumer credit.
As growth slows, consumer prices should increase by approximately 3.5% (on a
year-over-year basis) in 1997, due to growing labor cost pressures. This factor
is likely to push long-term interest rates up during the year. After starting
the year at 6.5%, we believe that the 30-year Treasury bond may peak during the
second half of the year and then fall back to approximately 6.9% in the fourth
quarter if economic growth slows.
One of the major uncertainties for the bond market in the first half of 1997
will be whether or not the tight labor market persists, and, furthermore,
whether it will result in much firmer consumer prices. Current bond prices
suggest that the market remains optimistic, but in the event that these
pressures translate into much higher prices, the bond market may encounter great
difficulty in the first half of the year.
We suspect that the Federal Reserve may combat rising consumer prices with an
increase in short-term interest rates. Our preliminary projections show that the
federal funds rate may move up during the first half of 1997, which should place
some downward pressure on stock prices.
/s/ Anthony Chan, Ph.D.
Anthony Chan, Ph.D.
VICE PRESIDENT AND CHIEF ECONOMIST
BANC ONE INVESTMENT ADVISORS CORPORATION
- ----4
<PAGE>
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The One Group Family of Mutual Funds
U.S. TREASURY SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS (20.7%):
U.S. Treasury Bills
$ 5,000 2/6/97...................................................... $ 4,975
5,000 3/6/97 (b).................................................. 4,956
35,000 4/3/97 (b).................................................. 34,539
35,000 5/1/97 (b).................................................. 34,388
10,000 5/29/97..................................................... 9,778
U.S. Treasury Notes
150,000 6.88%, 2/28/97 (b).......................................... 150,366
35,000 6.63%, 3/31/97 (b).......................................... 35,083
25,000 6.88%, 3/31/97 (b).......................................... 25,072
110,000 6.50%, 4/30/97 (b).......................................... 110,306
20,000 6.50%, 5/15/97 (b).......................................... 20,047
10,000 6.13%, 5/31/97 (b).......................................... 10,010
25,000 6.00%, 8/31/97.............................................. 25,083
25,000 8.75%, 10/15/97............................................. 25,622
25,000 5.63%, 10/31/97............................................. 25,033
15,000 7.37%, 11/15/97............................................. 15,237
25,000 6.00%, 11/30/97............................................. 25,123
---------------
Total U.S. Treasury Obligations 555,618
---------------
Total Investments, at amortized cost 555,618
---------------
REPURCHASE AGREEMENTS (79.4%):
110,000 Aubrey G. Lanston & Co., 6.80%, 1/2/97, (collateralized by
$104,180 U.S. Treasury Securities, 5.00%-7.00%,
1/31/99-7/15/06, market value - $111,409)................. 110,000
50,000 Barclays De Zoette Wedd, 6.75%, 1/2/97, (collateralized by
$46,662 various U.S. Treasury Securities, 7.00%-7.50%,
7/15/06-7/15/16, market value - $51,001).................. 50,000
110,000 CIBC, 6.75%, 1/2/97, (collateralized by $110,000 U.S.
Treasury Securities, 8.00%-10.37%, 11/15/09-11/15/21,
market value - $112,179).................................. 110,000
115,000 Donaldson, Lufkin & Jenrette, 6.75%, 1/2/97, (collateralized
by $347,651 various U.S. Treasury Securities,
0.00%-12.00%, 2/15/98-2/15/25, market value - $117,116)... 115,000
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
REPURCHASE AGREEMENTS, CONTINUED:
$ 110,000 Dresdner Securities, 6.25%, 1/2/97, (collateralized by
$110,000 U.S. Treasury Securities, 8.12%, 5/15/21, market
value - $111,217)......................................... $ 110,000
26,379 Goldman Sachs, 5.75%, 1/2/97, (collateralized by $26,896
various U.S. Treasury Securities, 0.00%-10.63%,
3/06/97-8/15/25, market value - $26,906).................. 26,379
625,000 Goldman Sachs, 6.70%, 1/2/97, (collateralized by $610,345
various U.S. Treasury Securities, 0.00%-10.63%,
3/06/97-8/15/25, market value - $637,501)................. 625,000
115,000 HSBC, 6.75%, 1/2/97, (collateralized by $191,561 various
U.S. Treasury Securities, 0.00%-11.25%, 7/15/97-8/15/25,
market value - $117,304).................................. 115,000
115,000 J.P. Morgan, 6.75%, 1/2/97, (collateralized by $332,105 U.S.
Treasury Securities, 0.00%, 5/15/97-8/15/14, market value
- $117,300)............................................... 115,000
645,000 Lehman Brothers, 7.00%, 1/2/97, (collateralized by
$1,525,448 U.S. Treasury Securities, 0.00%,
2/15/04-5/15/20, market value - $657,901)................. 645,000
110,000 Merrill Lynch, 5.75%, 1/2/97, (collateralized by $93,107
U.S. Treasury Securities, 8.13%-8.88%, 2/15/19-8/15/19,
market value - $112,204).................................. 110,000
---------------
Total Repurchase Agreements 2,131,379
---------------
Total (Cost--$2,686,997)(a) $ 2,686,997
---------------
---------------
</TABLE>
- ------------
Percentages indicated are based on net assets of $2,683,569.
<TABLE>
<C> <S>
(a) Cost for Federal income tax and financial reporting purposes is the same.
</TABLE>
<TABLE>
<C> <S>
(b) A portion of this security was loaned as of December 31, 1996.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5 ----
<PAGE>
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The One Group Family of Mutual Funds
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
FUNDING AGREEMENTS (11.2%):
$ 50,000 Allstate Life Insurance Company, 5.58%, 1/1/97*............. $ 50,000
125,000 General American Life Insurance Company, 5.58%, 3/19/97*.... 125,000
60,000 Peoples Security Life Insurance Company, 5.60%, 4/22/97*.... 60,000
60,000 Providian Life & Health Insurance Company, 5.65%, 3/1/97*... 60,000
---------------
Total Funding Agreements 295,000
---------------
YANKEE CERTIFICATE OF DEPOSITS (1.9%):
50,000 Sumitomo Bank--L.A. Branch, 5.58%, 2/10/97.................. 50,001
---------------
Total Yankee Certificate of Deposits 50,001
---------------
COMMERCIAL PAPER (71.4%):
Automotive (4.3%):
Mitsubishi Motor Credit of America, Inc.:
41,000 5.37%, 1/7/97............................................. 40,963
22,300 5.40%, 1/7/97............................................. 22,280
50,000 5.40%, 1/17/97............................................ 49,880
---------------
113,123
---------------
Banking (4.6%):
50,000 Bankers Trust New York Corp., 5.33%, 6/11/97................ 48,808
50,000 HSBC Americas, Inc., 5.39%, 2/5/97.......................... 49,738
22,000 Monte Dei Paschi Di Siena, 5.41%, 2/19/97................... 21,838
---------------
120,384
---------------
Brokerage & Financial Services (1.9%):
50,000 Lehman Brothers Holdings, Inc., 5.41%, 5/21/97.............. 48,948
---------------
Chemicals (3.2%):
Akzo Nobel, Inc.:
29,105 5.32%, 1/23/97............................................ 29,011
19,000 5.34%, 2/18/97............................................ 18,865
14,000 5.36%, 3/11/97............................................ 13,856
23,000 5.29%, 4/21/97............................................ 22,628
---------------
84,360
---------------
Computer Hardware (3.3%):
Texas Instruments, Inc.:
25,000 5.36%, 1/27/97............................................ 24,903
29,019 5.35%, 1/30/97............................................ 28,894
32,781 5.36%, 2/14/97............................................ 32,566
---------------
86,363
---------------
Computer Software (3.3%):
CSC Enterprises:
23,000 5.35%, 1/8/97............................................. 22,976
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Computer Software, continued:
$ 30,000 5.55%, 2/25/97............................................ $ 29,746
35,000 5.37%, 3/3/97............................................. 34,682
---------------
87,404
---------------
Construction (1.9%):
50,000 Caterpillar Financial Services Corp., 5.40%, 2/12/97........ 49,685
---------------
Consumer Goods & Services (0.2%):
5,000 Tambrands Corp., 5.38%, 2/4/97.............................. 4,975
---------------
Finance (22.5%):
Banner Receivables Corp.:
10,428 5.35%, 2/4/97............................................. 10,375
25,000 5.38%, 2/12/97............................................ 24,843
14,680 5.40%, 2/24/97............................................ 14,561
22,514 5.38%, 2/25/97............................................ 22,329
21,246 5.43%, 2/26/97............................................ 21,067
20,000 5.57%, 3/21/97............................................ 19,756
25,000 5.35%, 5/9/97............................................. 24,524
Broadway Capital:
30,000 5.39%, 1/10/97............................................ 29,960
13,000 5.38%, 2/21/97............................................ 12,901
37,000 5.39%, 3/3/97............................................. 36,662
11,913 5.38%, 3/21/97............................................ 11,772
50,000 CXC, Inc.,
5.35%, 1/29/97............................................ 49,792
Finova Capital Corp.,
20,000 5.40%, 1/10/97............................................ 19,973
21,600 5.40%, 1/17/97............................................ 21,548
10,000 5.37%, 2/3/97............................................. 9,951
25,800 5.38%, 2/19/97............................................ 25,611
45,000 5.37%, 2/20/97............................................ 44,664
Gotham Funding Corp.:
9,910 5.41%, 1/9/97............................................. 9,898
35,428 5.39%, 1/16/97............................................ 35,348
24,549 5.41%, 1/16/97............................................ 24,494
45,423 5.41%, 1/22/97............................................ 45,279
17,178 5.39%, 2/19/97............................................ 17,052
30,350 Madison Funding Corp.,
5.38%, 1/14/97............................................ 30,291
Old Line Funding Corp.:
21,170 5.45%, 1/6/97............................................. 21,154
13,157 5.50%, 1/9/97............................................. 13,141
---------------
596,946
---------------
Gas & Electric Utility (9.7%):
AES Shady Point, Inc.:
21,983 5.45%, 1/7/97............................................. 21,963
25,000 5.38%, 1/14/97............................................ 24,951
24,382 5.42%, 1/17/97............................................ 24,324
37,300 5.37%, 1/24/97............................................ 37,172
20,000 5.37%, 1/28/97............................................ 19,919
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----6
<PAGE>
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The One Group Family of Mutual Funds
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Gas & Electric Utility, continued:
CSW Credit, Inc.,
$ 44,700 5.32%, 1/13/97............................................ $ 44,621
32,800 5.40%, 2/18/97............................................ 32,564
50,000 Southwest Gas Corp.,
5.30%, 1/23/97............................................ 49,838
---------------
255,352
---------------
Governments (Foreign) (0.9%):
25,000 Swedish Export Credit Corp., 5.42%, 3/26/97................. 24,684
---------------
Manufactured Housing (2.3%):
60,000 Green Tree Financial Corp., 5.70%, 1/30/97.................. 59,725
---------------
Office Equipment & Services (0.9%):
25,000 Xerox Mexicana SA De CV, 5.51%, 1/15/97..................... 24,947
---------------
Oil & Gas Exploration Products & Services (3.0%):
Petroleo Brasileiro S.A.--Petrobras:
30,000 5.36%, 4/1/97............................................. 29,598
10,000 5.35%, 4/2/97............................................. 9,865
10,000 5.35%, 4/3/97............................................. 9,863
20,000 5.32%, 4/2/97............................................. 19,731
10,000 5.32%, 4/3/97............................................. 9,864
---------------
78,921
---------------
Real Estate (5.0%):
Countrywide Home Loans:
25,000 5.35%, 1/9/97............................................. 24,970
37,000 5.34%, 1/15/97............................................ 36,923
40,000 5.34%, 1/21/97............................................ 39,881
30,000 SRD Finance, Inc., 5.59%, 1/16/97........................... 29,930
---------------
131,704
---------------
Telecommunications (4.4%):
NYNEX Corp.:
30,000 5.41%, 1/6/97............................................. 29,977
30,000 5.34%, 1/22/97............................................ 29,907
26,000 5.34%, 1/31/97............................................ 25,884
30,000 5.34%, 2/7/97............................................. 29,835
---------------
115,603
---------------
Total Commercial Paper 1,883,124
---------------
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
MEDIUM TERM/SENIOR NOTES (7.9%):
Banking (4.7%):
Abbey National Treasury Services, PLC:
$ 75,000 5.08%, 2/27/97............................................ $ 74,998
50,000 5.11%, 3/17/97............................................ 49,991
---------------
124,989
---------------
Brokerage & Financial Services (3.2%):
50,000 Bear Stearns Companies, Inc., 5.60%, 3/14/97................ 50,000
10,000 Finova Capital Corp., 8.00%, 1/15/97........................ 10,008
25,000 Merrill Lynch & Co., Inc., 5.58%, 3/14/97................... 25,000
---------------
85,008
---------------
Total Medium Term/Senior Notes 209,997
---------------
U.S. GOVERNMENT AGENCIES (1.9%):
50,000 Student Loan Marketing Association, 5.41%, 9/28/98*......... 50,000
---------------
Total U.S. Government Agencies 50,000
---------------
Total Investments, at amortized cost 2,488,122
---------------
REPURCHASE AGREEMENTS (5.9%):
50,000 Prudential Securities, 6.70%, 1/2/97, (collateralized by
$54,665 various U.S. Government Securities, 0.00%-6.63%,
1/2/97-5/1/19, market value - $51,049).................... 50,000
106,342 Prudential Securities, 7.02%, 1/2/97, (collateralized by
$126,696 various U.S. Government Securities, 0.00%-10.75%,
1/2/97-2/15/21, market value - $108,470).................. 106,342
---------------
Total Repurchase Agreements 156,342
---------------
Total (Cost--$2,644,464)(a) $ 2,644,464
---------------
---------------
</TABLE>
- ------------
Percentages indicated are based on net assets of $2,638,148.
<TABLE>
<C> <S>
(a) Cost for Federal income tax and financial reporting purposes is the same.
</TABLE>
<TABLE>
<C> <S>
* Variable rate securities. The interest rate, which will change periodically, is based upon an index of market interest
rates. The rate reflected on the Schedule of Portfolio Investments is the rate in effect at December 31, 1996.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7 ----
<PAGE>
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The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
DAILY DEMAND NOTES (11.4%):
Alabama (2.1%):
$ 7,200 Phenix City, 93-A, IDR for Mead, 5.00%, 6/1/28, AMT, LOC:
Toronto Dominion*......................................... $ 7,200
3,200 Phenix City, IDR for Mead, 5.00%, 3/1/31, AMT, LOC:
Bayerische Vereinsbank*................................... 3,200
---------------
10,400
---------------
Idaho (0.8%):
4,000 Health Facility Authority Revenue, St. Lukes Regional
Medical Center Project, 5.25%, 5/1/22, LOC: Credit
Suisse*................................................... 4,000
---------------
Illinois (0.2%):
1,020 Health Facilities Authority Revenue, Central Dupage
Healthcorp Project, 5.25%, 11/1/20, LOC: Rabobank*........ 1,020
---------------
Kentucky (1.4%):
7,000 Economic Development. Finance Authority, Sisters of Charity
Hospital, 5.25%, 11/1/20, LOC: PNC Bank*.................. 7,000
---------------
Michigan (0.4%):
2,000 University of Michigan Hospital, Series A, 5.10%,
12/1/27*.................................................. 2,000
---------------
North Dakota (0.7%):
3,800 Grand Forks Health Care Facilities Revenue, United Hospital
Obligation Group, 96A 5.25%, 12/1/25, LOC: Lasalle
National Bank*............................................ 3,800
---------------
Ohio (0.4%):
2,000 State Air Quality Development Authority, Cincinnati Gas &
Electric, 4.70%, 12/1/15, LOC: J.P. Morgan*............... 2,000
---------------
Texas (2.8%):
5,000 Brazos River Authority, PCR, Texas Utilities Electric Co.
Project, Series B, 4.75%, 6/1/30, AMT, LOC: Union Bank of
Switzerland*.............................................. 5,000
8,600 Brazos River Authority, PCR, Texas Utilities Electric Co.
Project, 4.75%, 6/1/30, AMT, Insured by AMBAC*............ 8,600
600 North Central Health Facility Development Corp. Revenue,
Presbyterian Medical Center, Series D, 4.95%, 12/1/15,
Insured by MBIA*.......................................... 600
---------------
14,200
---------------
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
DAILY DEMAND NOTES, CONTINUED:
Washington (2.0%):
$ 10,000 Health Care Facilities Authority, Fred Hutchinson Cancer
Research Center, Series A, 5.25%, 1/1/18, LOC: Morgan
Guaranty*................................................. $ 10,000
---------------
Wyoming (0.6%):
Sublette County, PCR, Exxon Corp. Project,
2,500 5.10%, 7/1/17, Series A*.................................... 2,500
500 5.10%, 7/1/17*.............................................. 500
---------------
3,000
---------------
Total Daily Demand Notes 57,420
---------------
WEEKLY DEMAND NOTES (60.7%):
Arkansas (1.6%):
8,100 Clark County Solid Waste Disposal Revenue, Reynolds Metals
Co. Project, 4.20%, 8/1/22, AMT, LOC: Trust Co. Bank*..... 8,100
---------------
Colorado (3.8%):
3,000 Housing Finance Authority, Pool I, Series B, Coventry
Village, 4.30%, 10/15/16, LOC: FNMA*...................... 3,000
2,500 Student Obligation Bond Authority 90-A, 4.10%, 9/1/24, AMT,
LOC: Sallie Mae*.......................................... 2,500
4,400 Student Obligation Bond Authority, Student Loan Revenue,
4.10%, 07/01/20, AMT, LOC: Sallie Mae*.................... 4,400
9,100 Regents University of Colorado Student Housing Bonds, 4.00%,
6/1/20, LOC: Morgan Guaranty*............................. 9,100
---------------
19,000
---------------
Florida (2.0%):
10,000 Housing Finance Authority, Multi-family Housing Revenue,
Woodlands Apts. Project 85S, 4.25%, 12/1/17, LOC:
Citibank*................................................. 10,000
---------------
Georgia (2.1%):
7,000 De Kalb Private Hospital Authority Revenue, Egleston
Children's Hospital, Series A, 4.05%, 3/1/24, LOC:
SunTrust Bank*............................................ 7,000
3,735 Gwinnett County Housing Authority, Herrington Woods Apts.
Project, 96A, 4.25%, 9/15/26, AMT, LOC: KeyBank*.......... 3,735
---------------
10,735
---------------
</TABLE>
CONTINUED
- ----8
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Illinois (11.6%):
$ 11,400 Chicago O'Hare International Airport Revenue, Second Lien,
Series B, 4.25%, 1/1/18, AMT, LOC: Societe Generale*...... $ 11,400
3,700 Development Authority, Presbyterian Home Lake Forest Place
Project, 4.20%, 9/1/31 LOC: Lasalle National Bank*........ 3,700
5,900 Development Finance Authority Revenue, Special Facility,
Little City Foundation, 4.20%, 2/1/19, LOC: Lasalle
National Bank*............................................ 5,900
4,700 Development Finance Authority Revenue, Aurora Central
Catholic High School, 4.20%, 4/1/24, LOC: Northern
Trust*.................................................... 4,700
4,500 Development Finance Authority Revenue, Roosevelt University
Project, 4.20%, 4/1/25, LOC: American National Bank*...... 4,500
1,625 Development Finance Authority Revenue, St. Paul's House
Project, 4.20%, 2/1/25, LOC: Lasalle National Bank*....... 1,625
2,500 Educational Facility Authority Revenue, Northwestern
University, 4.25%, 3/1/28, LOC: Northern Trust*........... 2,500
7,000 Health Facilities Authority Revenue, Revolving Fund Pooled,
Series C, 4.15%, 8/1/15, LOC: First National Bank of
Chicago*.................................................. 7,000
1,900 Health Facilities Authority Revenue, Hospital Sisters
Service, Series E, 4.15%, 12/1/14, LOC: Morgan
Guaranty*................................................. 1,900
3,000 Health Facilities Authority Revenue, Washington & Jane Smith
Home, 4.25%, 7/1/26, LOC: First Chicago Bank*............. 3,000
7,640 Jacksonville Industrial Project Revenue, AGI Inc. Project,
AMT, 4.45%, 2/1/26, LOC: Bank of America*................. 7,640
2,000 Orland Hills Multi-Family Mortgage Revenue, 88Th Avenue
Project, 4.20%, 12/1/04, LOC: Lasalle National Bank*...... 2,000
2,500 Regional Trans. Authority Trust Receipts, 4.15%, 6/1/25,
LOC: Societe Generale*.................................... 2,500
---------------
58,365
---------------
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Indiana (9.0%):
$ 3,500 Development Finance Authority, MidAmerica Energy, 4.35%,
9/1/30, AMT, LOC: UBS*.................................... $ 3,500
14,800 Health Facility Financing Authority, Rehabilitation
Hospital, Inc., 4.10%, 11/1/20, LOC: Toronto Dominion
Bank*..................................................... 14,800
3,520 Health Facility Financing Authority Revenue, Capital Access
Designated Pool, 4.20%, 12/1/02, LOC: Comerica Bank*...... 3,520
5,600 Indianapolis Economic Development Revenue, Children's Museum
Project, 4.25%, 10/1/25, LOC: National Bank of Detroit*... 5,600
3,750 Jasper Economic Development Revenue, Best Chairs Inc.
Project, 4.25%, 3/1/19, AMT, LOC: PNC Bank*............... 3,750
14,035 Rockport, PCR, Indiana & Michigan Electric Co. Series A,
4.15%, 8/1/14, LOC: Swiss Bank*........................... 14,035
---------------
45,205
---------------
Kentucky (0.5%):
2,500 City of Mayfield, League of Cities Lease Finance Program 96,
4.30%, 7/1/26, LOC: PNC Bank*............................. 2,500
---------------
Michigan (4.4%):
16,800 Higher Education Student Loan, Series B, 4.10%, 10/1/13,
AMT, Insured by AMBAC*.................................... 16,800
1,655 State Strategic Fund, Limited Obligation, Wayne Disposal
Oakland Project, 4.35%, 3/1/05, AMT, LOC: Comerica
Bank*..................................................... 1,655
900 State Strategic Fund Limited Obligation Revenue
Environmental Quality, 4.35%, 5/1/05, AMT, LOC: Comerica
Bank*..................................................... 900
3,000 Wayne County Airport Revenue (Detroit Airport), Series B,
4.10%, 12/1/16, AMT, LOC: Bayerische Landesbank*.......... 3,000
---------------
22,355
---------------
Nevada (3.7%):
3,400 Clark County Airport Improvement Revenue, Sub Lien Series
A-1, 4.00%, 7/1/25, LOC: Toronto Dominion Bank*........... 3,400
</TABLE>
CONTINUED
9 ----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Nevada, continued:
$ 10,000 Clark County Industrial Development Revenue, Power Co.
Project, Series A, 4.25%, 10/1/30, AMT, LOC: Barclays
Bank*..................................................... $ 10,000
5,000 Clark County, Limited Tax, GO, 1996 Las Vegas Convention
Trust Receipts, 4.15%, 7/1/26, LOC: Societe Generale*..... 5,000
---------------
18,400
---------------
Ohio (2.9%):
6,300 Air Quality Development Authority, JMG Funding Corp., 4.15%,
4/1/29, AMT, LOC: Societe Generale*....................... 6,300
5,500 State Water Development Authority Revenue, Timken Company
Project, 4.10%, 5/1/07, LOC: Wachovia Bank*............... 5,500
2,800 Student Loan Funding Corp., Cincinnati Student Loan Revenue,
Series A-3, 4.10%, 1/1/07, AMT, LOC: National
Westminster*.............................................. 2,800
---------------
14,600
---------------
Rhode Island (1.0%):
5,000 State Student Loan Revenue Bond #3, 4.15%, 6/1/26, AMT, LOC:
National Westminster*..................................... 5,000
---------------
South Carolina (0.3%):
1,700 Cherokee County Industrial Revenue, Oshkosh Truck Corp.
Project, 4.50%, 8/1/19, AMT, LOC: Bank of Nova Scotia*.... 1,700
---------------
Tennessee (0.8%):
3,800 Oak Ridge Industrial Development Board, Economic Development
Revenue, Limited Obligation, 4.25%, 5/1/09, AMT, LOC:
Algemene Banke Nederland*................................. 3,800
---------------
Texas (11.6%):
14,100 Capital Health Facilities Development Corp., Island on Lake
Travis Ltd. Project, 4.10%, 12/1/16, AMT, LOC: Credit
Suisse*................................................... 14,100
10,000 Lower Colorado River Authority, Texas Elect Revenue, 4.00%,
1/1/13, LOC: MBIA*........................................ 10,000
10,000 Panhandle Plains Higher Education Inc., Student Loan
Revenue, Series A, 4.10%, 6/1/21, LOC: Sallie Mae*........ 10,000
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Texas, continued:
$ 8,400 Panhandle Plains Higher Education Authority, Student Loan
Revenue, Series A, 4.10%, 6/1/23, AMT, LOC: Sallie Mae*... $ 8,400
15,900 San Antonio Health Facilities Development Corp. Hospital
Revenue, Warm Springs Rehabilitation Foundation, Series A,
4.30%, 6/1/08, LOC: NationsBank*.......................... 15,900
---------------
58,400
---------------
Utah (2.0%):
10,200 Salt Lake City Airport Revenue, Sub Series A, 4.10%, 6/1/98,
AMT, LOC: Credit Suisse*.................................. 10,200
---------------
Washington (2.0%):
4,425 Pierce County, NN Baking Co., 4.15%, 7/1/03, AMT, LOC: U.S.
Bank of Washington*....................................... 4,425
3,525 Pierce County Economic Development Corp., Industrial
Revenue, McFarland Cascade Project, 3.95%, 10/1/07, AMT,
LOC: First National Bank of Seattle*...................... 3,525
2,500 Washington, GO Municipal Securities, Trust Receipts, 4.15%,
7/1/16, LOC: Societe Generale*............................ 2,500
---------------
10,450
---------------
West Virginia (1.4%):
6,900 Marion County Community Solid Waste Disposal Facility
Revenue, Grant Town, 4.25%, 10/1/17, AMT, LOC: National
Westminster*.............................................. 6,900
---------------
Total Weekly Demand Notes 305,710
---------------
MONTHLY DEMAND NOTES (3.1%):
Arizona (0.4%):
2,000 Chandler Industrial Development Authority, Parsons Municipal
Project, 3.70%, 12/15/09, LOC: National Westminster*...... 2,000
---------------
Indiana (2.7%):
13,700 Gary Environmental Improvement Revenue, U.S. Steel Corp.
Project, 3.70%, 7/15/02, LOC: Bank of Nova Scotia*........ 13,700
---------------
Total Monthly Demand Notes 15,700
---------------
</TABLE>
CONTINUED
- ----10
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
MUNICIPAL NOTES (1.3%):
Ohio (1.3%):
$ 3,500 Dublin City School District, GO Notes, Ohio School
Improvement, 4.00%, 6/10/97............................... $ 3,507
3,000 School District Cash Flow, COPS, 4.53%, 6/30/97............. 3,008
---------------
Total Municipal Notes 6,515
---------------
PUT BONDS** (3.0%):
Connecticut (0.9%):
4,500 Special Assessment Unemployment, Compensation Advance Fund
Revenue, Series C, 3.90%, 11/15/01........................ 4,500
---------------
Kentucky (0.7%):
3,500 Pulaski County Solid Waste Disposal, Eastern Kentucky Power
Cooperative, Inc. Project, 3.70%, 8/15/23, Guaranteed by
National Rural Utilities.................................. 3,500
---------------
Oregon (0.9%):
4,500 Housing & Community Series 96-K, AMT, 3.65%, 12/11/97....... 4,500
---------------
Wyoming (0.5%):
2,500 Uinta County, PCR, Amoco Standard Oil Co. Ind., 3.90%,
12/1/12*.................................................. 2,506
---------------
Total Put Bonds 15,006
---------------
SHORT TERM PUTS** (2.1%):
Arizona (1.5%):
7,500 Cochise County, PCR, Solid Waste Disposal Revenue, Electric
Power Corp., 3.70%, 9/1/24, AMT........................... 7,500
---------------
Missouri (0.6%):
3,000 State Environmental Improvement & Energy, Union Electric
Co., Series B, 3.65%, 6/1/14, LOC: Union Bank of
Switzerland............................................... 3,000
---------------
Total Short Term Puts 10,500
---------------
TAX FREE COMMERCIAL PAPER (7.4%):
Georgia (2.4%):
5,000 Municipal Electric Authority, 85A, Series B, 3.75%,
1/15/97................................................... 5,000
5,500 Municipal Electric Authority, 85A, Series B, 3.50%, 3/6/97,
LOC: Bayerische Landesbank................................ 5,500
1,650 Municipal Electric Authority, 94-D, 3.55%, 3/6/97........... 1,650
---------------
12,150
---------------
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER, CONTINUED:
Michigan (1.0%):
$ 5,080 State Building Authority, 3.50%, 5/1/97, LOC: CIBC.......... $ 5,080
---------------
North Carolina (1.0%):
5,000 Eastern Municipal Power Authority, 3.50%, 2/5/97, LOC:
CIBC...................................................... 5,000
---------------
Ohio (1.3%):
6,700 Water Development Authority, Cleveland Electric, 3.55%,
6/14/96, Insured by FGIC.................................. 6,700
---------------
Texas (1.0%):
5,000 Brazos River Authority Utilities, PCR, 3.65%, 5/1/97, LOC:
CIBC...................................................... 5,000
---------------
West Virginia (0.7%):
3,500 Public Energy Authority Energy Revenue, Morgantown Assoc.
Project, 3.70%, 2/14/97, AMT, LOC: Swiss Bank............. 3,500
---------------
Total Tax Free Commercial Paper 37,430
---------------
ANTICIPATION NOTES (11.4%):
California (5.0%):
15,000 Los Angeles County Tax & Revenue Anticipation Notes, Series
A, 4.50%, 6/30/97, LOC: Credit Suisse, Morgan Guaranty,
Union Bank of Switzerland, West Deutsche Landesbank, Bank
of America................................................ 15,050
10,050 California State, Revenue Anticipation Notes, Series A,
4.50%, 6/30/97............................................ 10,092
---------------
25,142
---------------
Colorado (2.1%):
10,000 Tax & Revenue Anticipation Notes, Series A, 4.50%,
6/27/97................................................... 10,034
---------------
Idaho (1.8%):
9,000 State Tax Anticipation Note, 4.50%, 6/30/97................. 9,025
---------------
Michigan (1.9%):
10,000 Municipal Bond Authority, Series A, 4.50%, 7/03/97.......... 10,029
---------------
Puerto Rico (0.6%):
3,000 Commonwealth of Puerto Rico, Trans-- 97A, 4.00%, 07/30/97... 3,010
---------------
Total Anticipation Notes 57,240
---------------
Total (Cost--$505,521) (a) $ 505,521
---------------
---------------
</TABLE>
- ------------
Percentages indicated are based on net assets of $503,629.
CONTINUED
11----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<C> <S>
(a) Cost for Federal income tax and financial reporting purposes is the same.
</TABLE>
<TABLE>
<C> <S>
* Variable rate securities. The interest rate, which will change periodically, is based upon an index of market interest
rates. The rate reflected on the Schedule of Portfolio Investments is the rate in effect at December 31, 1996.
</TABLE>
<TABLE>
<C> <S>
** Put and demand features exist.
</TABLE>
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corporation
AMT Alternative Minimum Tax Paper
COPS Certificates of Participation
GO General Obligation
IDR Industrial Development Revenue
FGIC Insured by Financial Guaranty Insurance Corp.
FNMA Insured by Federal National Mortgage Association
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----12
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
MUNICIPAL BONDS (1.1%):
Ohio (1.1%):
$ 1,000 Columbus, General Obligation Bond, 6.75%, 7/1/97, ETM: U.S.
Govt.'s................................................... $ 1,014
---------------
Total Municipal Bonds 1,014
---------------
DAILY DEMAND NOTES (2.6%):
Ohio (2.6%):
2,300 Twinsburg, Industrial Development Revenue, United Stationers
Project, 5.15%, 12/1/11, LOC: PNC Bank*................... 2,300
---------------
Total Daily Demand Notes 2,300
---------------
WEEKLY DEMAND NOTES (51.5%):
Ohio (51.5%):
1,000 Air Quality Development Authority, JMG Funding Corp., 4.15%,
4/1/29, LOC: Societe Generale*............................ 1,000
1,000 Butler County, Meadow Ridge Housing Project, AMT, 4.20%,
11/15/30, LOC: FNMA*...................................... 1,000
2,990 Clermont County, Hospital Facilities Mercy Health Care of
Cincinnati, Series B, 4.50%, 12/1/15, Insured by MBIA*.... 2,990
300 Cuyahoga County, Allen Group Inc., AMT, 4.25%, 4/1/12, LOC:
Dresdner Bank*............................................ 300
4,000 Cuyahoga County, Cleveland Clinic Foundation, 4.10%, 1/1/26,
LOC: Morgan Guaranty Bank*................................ 4,000
1,600 Cuyahoga County, Allen Group, Inc., 4.10%, 12/1/15, LOC:
Union Bank of Switzerland*................................ 1,600
1,500 Franklin County Hospital Authority, 4.25%, 5/1/15, LOC:
National Bank of Detroit*................................. 1,500
1,800 Franklin County Hospital Revenue, Holy Cross Health Systems,
4.10%, 6/16/16, LOC: Morgan Guaranty Bank*................ 1,800
1,500 Franklin County Inland Products, Inc., 4.25%, 6/1/04, LOC:
PNC Bank*................................................. 1,500
2,000 Geauga County Industrial Development, General Signal Corp.,
4.30%, 4/1/04, LOC: Wachovia Bank*........................ 2,000
500 Hamilton County Economic Development Revenue, Cincinnati
Performing Arts Center, 4.20%, 6/15/05, LOC: Fifth Third
Bank*..................................................... 500
2,000 Hamilton County Hospital Revenue, Bethesda Hospital, 4.05%,
2/15/24, LOC: Rabobank Nederland*......................... 2,000
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Ohio, continued:
$ 950 Higher Education Facility, Mount Union College Project,
4.25%, 9/1/20, LOC: National Bank of Detroit*............. $ 950
3,000 Housing Finance Authority, Spring Valley Apts. 96A, 4.25%,
12/15/29, AMT, LOC: Keybank*.............................. 3,000
500 Montgomery County, Sisters of Charity Healthcare, 4.15%,
5/15/25, LOC: Toronto Dominion*........................... 500
1,000 Ross County, Ohio Hospital Facilities, Medical Center
Project, 4.25%, 12/1/20, LOC: Fifth Third Bank*........... 1,000
1,800 State Air Quality Development Authority Revenue, JMG Funding
Limited Partnership, Series A, 4.15%, 4/1/28, LOC: Societe
Generale*................................................. 1,800
3,000 State Air Quality Development Revenue Bonds, Timken Co.
Project, 4.10%, 6/1/01, AMT, LOC: Union Bank of
Switzerland*.............................................. 3,000
1,000 State Court Street Center, 4.10%, 10/1/98, LOC: Provident
Bank*..................................................... 1,000
2,850 State Higher Education Facilities, Oberlin College Project,
2.80%, 10/1/15, SBPA: Morgan Guaranty*.................... 2,850
Student Loan Funding Corp.,
1,375 4.05%, 12/29/98, LOC: National Westminster Bank*.......... 1,375
2,000 4.20%, 1/1/07, LOC: Bank of America*...................... 2,000
3,000 State Water Development Authority, Timken Co. Project,
4.10%, 6/1/01, LOC: Credit Suisse*........................ 3,000
The Ohio State University General Receipts, Series B,
400 4.05%, 12/1/06, SBPA: Westminster Bank*................... 400
2,750 4.00%, 12/1/12*........................................... 2,750
2,100 Wooster Industrial Development Revenue, Allen Group Inc.,
4.40%, 12/1/10, LOC: Union Bank of Switzerland*........... 2,100
---------------
Total Weekly Demand Notes 45,915
---------------
MONTHLY DEMAND NOTES (3.7%):
Ohio (3.7%):
3,300 Housing Financial Agency, 3.50%, 12/1/15, LOC: Morgan
Guaranty Bank*............................................ 3,300
---------------
Total Monthly Demand Notes 3,300
---------------
</TABLE>
CONTINUED
13----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
OHIO MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1996
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
MUNICIPAL NOTES (6.2%):
Ohio (6.2%):
$ 2,500 Dublin, City School District Notes, 4.00%, 6/10/97.......... $ 2,505
3,000 School District Cash Flow, COPS, 4.53%, 6/30/97............. 3,008
---------------
Total Municipal Notes 5,513
---------------
SHORT TERM PUTS** (2.8%):
Ohio (2.8%):
2,500 Air Quality Development Authority Revenue, Ohio Edison,
Series B, 3.80%, 5/1/97, AMT, LOC: Union Bank of
Switzerland............................................... 2,500
---------------
Total Short-Term Puts 2,500
---------------
TAX FREE COMMERCIAL PAPER (14.6%):
Ohio (14.6%):
1,000 State Air Quality Development Authority, Cleveland Electric
Illuminating Co., FGIC, 3.45%, 3/6/97..................... 1,000
3,000 State Air Quality Development Authority, Cleveland Electric
Illuminating Co., FGIC, 3.70%, 1/16/97.................... 3,000
1,300 Toledo (Lucas County), CSX Transportation, 3.50%, 3/21/97,
LOC: Bank of Nova Scotia.................................. 1,300
3,700 Toledo (Lucas County) Ohio Port Authority, 3.50%, 3/3/97,
LOC: Bank of Nova Scotia.................................. 3,700
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION AMORTIZED COST
- --------------- ------------------------------------------------------------ ---------------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER, CONTINUED:
Ohio, continued:
$ 1,000 State Water Development Authority, Cleveland Electric
Illuminating Co., FGIC, 3.55%, 2/6/97..................... $ 1,000
3,000 State Water Development Authority, Cleveland Electric
Illuminating Co., FGIC, 3.50%, 2/5/97..................... 3,000
---------------
Total Tax-Free Commercial Paper 13,000
---------------
ANTICIPATION NOTES (17.1%):
Ohio (14.9%):
5,000 Brecksville, Broadview Heights, City School District, BAN,
3.90%, 1/17/97............................................ 5,001
1,000 City of Cleveland, 1996-A Cleveland Stadium Project, BAN,
4.50%, 10/15/97........................................... 1,004
1,400 Solon City School District, BAN 96-2, 4.00%, 4/15/97........ 1,402
1,670 Summit County, BAN, Series B, 4.00%, 6/5/97................. 1,672
1,500 University of Cincinnati, BAN, 4.25%, 8/28/97............... 1,503
1,000 University of Cincinnati, General Receipts, BAN, Series Aa,
3.89%, 3/20/97............................................ 1,001
1,700 University of Cincinnati, General Receipts, BAN, Series K1,
3.75%, 3/20/97............................................ 1,702
---------------
13,285
---------------
Puerto Rico (2.2%):
2,000 Commonwealth of Puerto Rico,
TRANS - 97A, 4.00%, 7/30/97............................... 2,006
---------------
Total Anticipation Notes 15,291
---------------
Total (Cost--$88,833)(a) $ 88,833
---------------
---------------
</TABLE>
- ------------
Percentages indicated are based on net assets of $89,189.
<TABLE>
<C> <S>
(a) Cost for Federal income tax and financial reporting purposes is the same.
</TABLE>
<TABLE>
<C> <S>
* Variable rate securities. The interest rate, which will change periodically, is based upon an index of market interest
rates. The rate reflected on the Schedule of Portfolio Investments is the rate in effect at December 31, 1996.
</TABLE>
<TABLE>
<C> <S>
** Put features exist.
</TABLE>
<TABLE>
<S> <C>
AMT Alternative Minimum Tax Paper
BAN Bond Anticipation Note
COPS Certificate of Participation
ETM Escrow to Maturity
FGIC Insured by Financial Guaranty Insurance Corp.
FNMA Insured by Federal National Mortgage Association
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
SBPA Stand By Purchase Agreement
TRANS Tax & Revenue Anticipation Notes
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----14
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands,
except per share amounts)
U.S. TREASURY OHIO
SECURITIES MUNICIPAL MUNICIPAL
MONEY MARKET PRIME MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost................. $ 555,618 $ 2,488,122 $ 505,521 $ 88,833
Repurchase agreements, at cost................. 2,131,379 156,342 -- --
------------- ------------- ------------- -------------
Total.......................................... 2,686,997 2,644,464 505,521 88,833
Interest receivable............................ 7,905 6,203 3,065 696
Receivable for shares issued................... -- 148 -- --
Deferred organization costs.................... -- -- -- 1
Prepaid expenses and other assets.............. 421 240 17 3
------------- ------------- ------------- -------------
TOTAL ASSETS................................... 2,695,323 2,651,055 508,603 89,533
------------- ------------- ------------- -------------
LIABILITIES:
Cash overdraft................................. -- -- 3,176 7
Dividends payable.............................. 10,695 11,574 1,460 258
Accrued expenses and other payables:
Investment advisory fees................... 541 680 114 21
Administration fees........................ 358 360 73 9
12b-1 fees (Class A)....................... 79 74 9 8
Accounting and transfer agent fees......... 16 40 22 15
Other...................................... 65 179 120 26
------------- ------------- ------------- -------------
TOTAL LIABILITIES.............................. 11,754 12,907 4,974 344
------------- ------------- ------------- -------------
NET ASSETS:
Capital........................................ 2,683,527 2,638,165 503,774 89,248
Undistributed (distributions in excess of) net
investment income............................. 43 7 (127) (51)
Accumulated undistributed net realized losses
from investment transactions.................. (1) (24) (18) (8)
------------- ------------- ------------- -------------
NET ASSETS..................................... $ 2,683,569 $ 2,638,148 $ 503,629 $ 89,189
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net Assets
Fiduciary.................................. $ 2,344,946 $ 2,322,235 $ 461,544 $ 52,910
Class A.................................... 338,587 315,790 42,085 36,279
Class B.................................... 36 123 -- --
------------- ------------- ------------- -------------
Total.......................................... $ 2,683,569 $ 2,638,148 $ 503,629 $ 89,189
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Outstanding units of beneficial interest
Fiduciary.................................. 2,344,903 2,322,253 461,674 52,946
Class A.................................... 338,586 315,789 42,100 36,302
Class B.................................... 36 123 -- --
------------- ------------- ------------- -------------
Total.......................................... 2,683,525 2,638,165 503,774 89,248
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net asset value--offering and redemption price
per share (Fiduciary, Class A and Class B
shares)....................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- -----
----- ----- ----- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. TREASURY OHIO MUNICIPAL
SECURITIES MONEY PRIME MONEY MUNICIPAL MONEY MONEY MARKET
MARKET FUND MARKET FUND MARKET FUND FUND
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................................... $ 60,584 $ 73,594 $ 9,117 $ 1,627
Dividend income........................................... -- -- 111 38
Income from securities lending............................ 127 9 -- --
-------- -------- ------- -------
TOTAL INCOME.............................................. 60,711 73,603 9,228 1,665
-------- -------- ------- -------
EXPENSES:
Investment advisory fees.................................. 3,955 4,681 915 143
Administration fees....................................... 1,869 2,212 432 79
12b-1 fees (Class A)...................................... 417 571 73 73
Custodian and accounting fees............................. 77 60 27 8
Legal and audit fees...................................... 71 83 30 6
Trustees' fees and expenses............................... 15 15 4 1
Transfer agent fees....................................... 31 62 17 14
Registration and filing fees.............................. 133 55 8 5
Printing costs............................................ 74 81 44 7
Other..................................................... 9 8 2 1
-------- -------- ------- -------
Total expense before waivers.............................. 6,651 7,828 1,552 337
Less waivers.............................................. (1,465) (1,195) (384) (93)
-------- -------- ------- -------
NET EXPENSES.............................................. 5,186 6,633 1,168 244
-------- -------- ------- -------
Net Investment Income..................................... 55,525 66,970 8,060 1,421
-------- -------- ------- -------
REALIZED GAINS (LOSSES) FROM INVESTMENT TRANSACTIONS:
Net realized gains (losses) from investment
transactions............................................. 39 3 (14) (8)
-------- -------- ------- -------
Net increase in net assets resulting
from operations.......................................... $ 55,564 $ 66,973 $ 8,046 $ 1,413
-------- -------- ------- -------
-------- -------- ------- -------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----16
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. TREASURY SECURITIES PRIME MONEY MARKET FUND
MONEY MARKET FUND
----------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1996 1996 1996 1996
------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income......................... $ 55,525 $ 80,358 $ 66,970 $ 130,413
Net realized gains (losses) from investment
transactions................................ 39 (9) 3 9
------------- ------------- ------------- -------------
Change in net assets resulting from operations.... 55,564 80,349 66,973 130,422
------------- ------------- ------------- -------------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income.................... (49,929) (75,330) (59,167) (116,410)
In excess of net investment income............ -- -- -- --
From net realized gains from investment
transactions................................ (6) -- -- --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income.................... (5,596) (5,012) (7,802) (13,976)
In excess of net investment income............ -- -- -- --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income.................... -- -- (1) --
------------- ------------- ------------- -------------
Change in net assets from shareholder
distributions................................... (55,531) (80,342) (66,970) (130,386)
------------- ------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................... 3,504,557 4,000,794 3,232,160 5,382,651
Proceeds from shares issued in connection with
acquisition................................. -- 356,742 -- --
Dividends reinvested.......................... 3,403 4,792 7,515 14,099
Cost of shares redeemed....................... (2,779,878) (3,683,695) (3,103,466) (5,062,234)
Change in net assets from share transactions...... 728,082 678,633 136,209 334,516
------------- ------------- ------------- -------------
Change in Net Assets.............................. 728,115 678,640 136,212 334,552
NET ASSETS:
Beginning of period........................... 1,955,454 1,276,814 2,501,936 2,167,384
------------- ------------- ------------- -------------
End of period................................. $ 2,683,569 $ 1,955,454 $ 2,638,148 $ 2,501,936
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARE TRANSACTIONS:
Issued........................................ 3,504,557 4,000,794 3,232,160 5,382,651
Issued in connection with acquisition......... -- 356,742 -- --
Reinvested.................................... 3,403 4,792 7,515 14,099
Redeemed...................................... (2,779,878) (3,683,695) (3,103,466) (5,062,234)
------------- ------------- ------------- -------------
Change in shares.................................. 728,082 678,633 136,209 334,516
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Undistributed (distributions in excess of) net
investment income included in net assets:
End of Period................................. $ 43 $ 43 $ 7 $ 7
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
MUNICIPAL MONEY MARKET FUND OHIO MUNICIPAL MONEY MARKET
FUND
----------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1996 1996 1996 1996
------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income......................... $ 8,060 $ 19,034 $ 1,421 $ 2,941
Net realized gains (losses) from investment
transactions................................ (14) (4) (8) --
------------- ------------- ------------- -------------
Change in net assets resulting from operations.... 8,046 19,030 1,413 2,941
------------- ------------- ------------- -------------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income.................... (7,469) (17,075) (827) (1,588)
In excess of net investment income............ -- -- -- (22)
From net realized gains from investment
transactions................................ -- (4) -- --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income.................... (591) (1,947) (594) (1,353)
In excess of net investment income............ -- -- -- (19)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income.................... -- -- -- --
------------- ------------- ------------- -------------
Change in net assets from shareholder
distributions................................... (8,060) (19,026) (1,421) (2,982)
------------- ------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................... 662,162 1,409,174 208,761 337,815
Proceeds from shares issued in connection with
acquisition................................. -- -- -- --
Dividends reinvested.......................... 588 1,889 550 1,337
Cost of shares redeemed....................... (669,634) (1,394,801) (217,161) (329,660)
Change in net assets from share transactions...... (6,884) 16,262 (7,850) 9,492
------------- ------------- ------------- -------------
Change in Net Assets.............................. (6,898) 16,266 (7,858) 9,451
NET ASSETS:
Beginning of period........................... 510,527 494,261 97,047 87,596
------------- ------------- ------------- -------------
End of period................................. $ 503,629 $ 510,527 $ 89,189 $ 97,047
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARE TRANSACTIONS:
Issued........................................ 662,162 1,409,174 208,761 337,815
Issued in connection with acquisition......... -- -- -- --
Reinvested.................................... 588 1,889 550 1,337
Redeemed...................................... (669,634) (1,394,801) (217,161) (329,660)
------------- ------------- ------------- -------------
Change in shares.................................. (6,884) 16,262 (7,850) 9,492
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Undistributed (distributions in excess of) net
investment income included in net assets:
End of Period................................. $ (127) $ (127) $ (51) $ (51)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996
(Unaudited)
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as a diversified, open-end investment
company established as a Massachusetts business trust. The Trust is
registered to offer four classes of shares: Fiduciary, Class A, Class B, and
Service. The Trust currently consists of thirty active funds. The
accompanying financial statements and financial highlights are those of the
U.S. Treasury Securities Money Market Fund, the Prime Money Market Fund, the
Municipal Money Market Fund, and the Ohio Municipal Money Market Fund
(individually, a "Fund"; collectively, the "Funds") only. Each Fund is a
diversified mutual fund, except the Ohio Municipal Money Market Fund which
is non-diversified.
The Trust entered into an Agreement and Plan of Reorganization (the
"Agreement") with the Paragon Portfolio ("Paragon"), a Massachusetts
business trust. 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. Changes in net assets and
financial highlights for periods prior to the reorganization, March 25,
1996, are presented for the funds of The One Group only.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
- -------------------------------------------------------- ---------------------------------------------
<S> <C>
U.S. Treasury Securities Money Market Fund Current income with liquidity and stability
of principal.
Prime Money Market Fund Current income with liquidity and stability
of principal.
Municipal Money Market Fund As high a level of current interest income
exempt from Federal income taxes as is
consistent with the preservation of capital
and stability of principal.
Ohio Municipal Money Market Fund As high a level of current interest income
exempt from Federal income taxes and Ohio
personal income tax as is consistent with
the preservation of capital and stability of
principal.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The preparation
of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses for the period. Actual results could differ from those estimates.
SECURITY VALUATION
Securities are valued utilizing the amortized cost method permitted in
accordance with Rule 2a-7 under the 1940 Act. Under the amortized cost
method, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the Funds may not (a) purchase any
instrument with a remaining maturity greater than thirteen months unless
such instrument is subject to a demand feature, or (b) maintain a
dollar-weighted average maturity which exceeds 90 days.
CONTINUED
- ----18
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
(Unaudited)
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements with institutions that the
Fund's investment adviser has determined are creditworthy. Each repurchase
agreement is recorded at cost. The Fund requires that the securities
purchased in a repurchase transaction be transferred to the custodian in a
manner sufficient to enable the Fund to obtain those securities in the
event of a counterparty default. The seller, under the repurchase
agreement, is required to maintain the value of the securities held at not
less than the repurchase price, including accrued interest. Repurchase
agreements are considered to be loans by a fund in the 1940 Act.
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net realized
gains or losses on sales of securities are determined on the specific
identification cost method. Interest income and expenses are recognized on
the accrual basis. Interest income, including any discount or premium, is
accrued as earned using the effective interest method.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities
in which they are invested pursuant to agreements requiring that the loan
be continuously secured by cash, U.S. Government or U.S. Government Agency
securities, shares of an investment trust or mutual fund, or any
combination of cash and such securities as collateral equal at all times to
at least 100% of the market value plus accrued interest on the securities
lent. The Funds continue to earn interest on securities lent while
simultaneously seeking to earn interest on the investment of collateral.
Collateral is marked to market daily to provide a level collateral at least
equal to the market value of securities lent. There may be risks of delay
in recovery of the securities or even loss of rights in the collateral
should the borrower of the securities fail financially. However, loans will
be made only to borrowers deemed by the Adviser to be of good standing and
creditworthy under guidelines established by the Board of Trustees and
when, in the judgement of the Adviser, the consideration which can be
earned currently from such securities loans justifies the attendant risk.
Loans are subject to termination by the Funds or the borrower at any time,
and are, therefore, not considered to be illiquid investments. As of
December 31, 1996, the following Fund had securities with the following
market values on loan (amount in thousands):
<TABLE>
<CAPTION>
MARKET VALUE
OF LOANED
SECURITIES
--------------
<S> <C>
U.S. Treasury Securities Money Market Fund.................. $ 162,686
</TABLE>
The loaned securities were fully collateralized by cash and U.S. Government
securities as of December 31, 1996.
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.
CONTINUED
19----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
(Unaudited)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly.
Net income for this purpose consists of interest accrued and discount
earned (including both original issue discount and market discount) less
amortization of any market premium and accrued expenses. Net realized
capital gains, if any, are distributed at least annually. Dividends are
declared separately for each class. No class has preferential dividend
rights; differences in per share dividend rates are generally due to
differences in separate class expenses.
Net investment income and net capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of expiring capital loss carryforwards and deferrals
of certain losses. Permanent book and tax differences, if any, have been
reclassified among the components of net assets.
ORGANIZATION COSTS
Costs incurred by the Trust in connection with its organization, including
the fees and expenses of registering and qualifying its shares for
distribution have been deferred and are being amortized using the
straight-line method over a period of five years beginning with the
commencement of each Fund's operations. All such costs have been allocated
among the funds of the Trust pro-rata, based on the relative net assets of
each fund. In the event that any of the initial shares are redeemed during
such period by any holder thereof, the related Fund will be reimbursed by
such holder for any unamortized organization costs in the proportion as the
number of initial shares being redeemed bears to the number of initial
shares outstanding at the time of redemption.
FEDERAL INCOME TAXES
Each Fund intends to continue to qualify as a regulated investment company
by complying with the provisions
available to certain investment companies as defined in applicable sections
of the Internal Revenue Code, and to make distributions of net investment
income and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value, which may, without shareholder approval, be divided into an
unlimited number of series of such shares and any series may be classified
or reclassified into one or more classes. Currently, shares of the Trust are
registered to be offered through forty series and four classes: Fiduciary,
Class A, Class B, and Service. During the year ended June 30, 1995, Service
Shares transferred to Class A Shares. As of December 31, 1996 there were no
shareholders in the Service Class. 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 six months ended December 31,
1996 and the year ended June 30, 1996:
CONTINUED
- ----20
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
(Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES PRIME MONEY
MONEY MARKET FUND MARKET FUND
----------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED JUNE ENDED ENDED JUNE
DECEMBER 31, 30, DECEMBER 31, 30,
1996 1996 1996 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued............................... $ 2,798,900 $ 3,573,870 $ 2,195,927 $ 4,119,886
Proceeds from shares issued in connection with
acquisition............................................. -- 333,798 -- --
Dividends reinvested...................................... 263 345 884 1,683
Cost of shares redeemed................................... (2,298,838) (3,241,505) (2,061,141) (3,900,430)
------------- ------------- ------------- -------------
Change in net assets from Fiduciary share transactions.... $ 500,325 $ 666,508 $ 135,670 $ 221,139
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CLASS A SHARES:
Proceeds from shares issued............................... $ 705,621 $ 426,924 $ 1,036,000 $ 1,262,765
Proceeds from shares issued in connection with
acquisition............................................. -- 22,944 -- --
Dividends reinvested...................................... 3,140 4,447 6,631 12,416
Cost of shares redeemed................................... (481,040) (442,190) (1,042,215) (1,161,804)
------------- ------------- ------------- -------------
Change in net assets from Class A share
transactions............................................ $ 227,721 $ 12,125 $ 416 $ 113,377
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CLASS B SHARES:
Proceeds from shares issued............................... $ 36 $ 233
Dividends reinvested...................................... -- --
Cost of shares redeemed................................... -- (110)
------------- -------------
Change in net assets from Class B share transactions...... $ 36 $ 123
------------- -------------
------------- -------------
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.................................................... 2,798,900 3,573,870 2,195,927 4,119,886
Issued in connection with acquisition..................... -- 333,798 -- --
Reinvested................................................ 263 345 884 1,683
Redeemed.................................................. (2,298,838) (3,241,505) (2,061,141) (3,900,430)
------------- ------------- ------------- -------------
Change in Fiduciary Shares................................ 500,325 666,508 135,670 221,139
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CLASS A SHARES:
Issued.................................................... 705,621 426,924 1,036,000 1,262,765
Issued in connection with acquisition..................... -- 22,944 -- --
Reinvested................................................ 3,140 4,447 6,631 12,416
Redeemed.................................................. (481,040) (442,190) (1,042,215) (1,161,804)
------------- ------------- ------------- -------------
Change in Class A Shares.................................. 227,721 12,125 416 113,377
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CLASS B SHARES:
Issued.................................................... 36 233
Reinvested................................................ -- --
Redeemed.................................................. -- (110)
------------- -------------
Change in Class B Shares.................................. 36 123
------------- -------------
------------- -------------
</TABLE>
CONTINUED
21----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
(Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND OHIO MUNICIPAL MONEY MARKET
FUND
----------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED JUNE ENDED ENDED JUNE
DECEMBER 31, 30, DECEMBER 31, 30,
1996 1996 1996 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued................................. $ 547,786 $ 1,109,221 $ 83,375 $ 165,403
Dividends reinvested........................................ 44 114 46 62
Cost of shares redeemed..................................... (546,080) (1,087,267) (86,421) (161,325)
------------- ------------- ------------- -------------
Change in net assets from Fiduciary share
transactions.............................................. $ 1,750 $ 22,068 $ (3,000) $ 4,140
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CLASS A SHARES:
Proceeds from shares issued................................. $ 114,376 $ 299,953 $ 125,386 $ 172,412
Dividends reinvested........................................ 544 1,775 504 1,275
Cost of shares redeemed..................................... (123,554) (307,534) (130,740) (168,335)
------------- ------------- ------------- -------------
Change in net assets from Class A share transactions........ $ (8,634) $ (5,806) $ (4,850) $ 5,352
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued...................................................... 547,786 1,109,221 83,375 165,403
Reinvested.................................................. 44 114 46 62
Redeemed.................................................... (546,080) (1,087,267) (86,421) (161,325)
------------- ------------- ------------- -------------
Change in Fiduciary Shares.................................. 1,750 22,068 (3,000) 4,140
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CLASS A SHARES:
Issued...................................................... 114,376 299,953 125,386 172,412
Reinvested.................................................. 544 1,775 504 1,275
Redeemed.................................................... (123,554) (307,534) (130,740) (168,335)
------------- ------------- ------------- -------------
Change in Class A Shares.................................... (8,634) (5,806) (4,850) 5,352
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and Banc One Investment Advisors Corporation (the "Adviser"), are
parties to an investment advisory agreement under which the Adviser is
entitled to receive an annual fee, computed daily and paid monthly, equal to
0.35% of the average daily net assets of the U.S. Treasury Securities Money
Market Fund, the Prime Money Market Fund and the Municipal Money Market Fund
and 0.30% of the average daily net assets of the Ohio Municipal Money Market
Fund.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administration agreement under which the Administrator provides services for
a fee that is computed daily and paid monthly, at an annual rate of 0.20% on
each Fund's average daily net assets on the first $1.5 billion of Trust net
assets (excluding the Investor Growth Fund, the Investor Growth & Income
Fund, the Investor Conservative Growth 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% on Trust net
assets (excluding the Investor Funds and the Institutional Money Market
Funds) over $2 billion. The Adviser also serves as Sub-Administrator to each
fund of
CONTINUED
- ----22
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
(Unaudited)
the Trust, pursuant to an agreement between the Administrator and the
Adviser. Pursuant to this agreement, the Adviser performs many of the
Administrator's duties, for which the Adviser receives a fee paid by the
Administrator. Prior to March 26, 1996, Goldman Sachs Asset Management
served as administrator of Paragon under essentially the same terms as the
current administration agreement.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A Shares, Class B Shares and Service Class 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, 1.00% of the average daily
net assets of Class B and 0.75% of the average daily net assets of the
Service Class Shares of each of the Funds. 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 and 0.55% of average daily net
assets of the Service Class Shares of each Fund. Up to 0.25% of the fees
payable under the Plans may be used as compensation of 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.
Prior to January 2, 1996, Premier Investment Advisors, L.L.C. ("Premier")
served as investment adviser and Goldman Sachs & Company served as
distributor to Paragon. Pursuant to the approval of the Board of Trustees of
Paragon on October 31, 1995 and its Shareholders on December 20, 1995,
Paragon entered into an investment advisory agreement with the Adviser and a
distribution agreement with the Distributor effective January 2, 1996. The
Terms of the investment advisory agreements with Premier and with the
Adviser and the distribution agreements with Goldman Sachs & Company and the
Distributor were substantially the same. Certain officers of the Trust are
affiliated with the Administrator. Such officers receive no compensation
from the Funds for serving in their respective roles.
The Adviser, Administrator and the Distributor voluntarily agreed to waive a
portion of their fees and to reimburse the Funds for certain expenses. For
the six months ended December 31, 1996, fees in the following amounts were
waived from the Funds (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT 12B-1 FEES
ADVISORY FEES ADMINISTRATION WAIVED
WAIVED FEES WAIVED CLASS A
--------------- ----------------- -------------
<S> <C> <C> <C>
U.S. Treasury Securities Money Market Fund.............................. $ 1,346 -- $ 119
Prime Money Market Fund................................................. 979 $ 53 163
Municipal Money Market Fund............................................. 331 32 21
Ohio Municipal Money Market Fund........................................ 15 57 21
</TABLE>
5. CONCENTRATION OF CREDIT RISK:
The Ohio Municipal Money Market Fund invests primarily in debt obligations
issued by the State of Ohio and its political subdivisions, agencies and
public authorities to obtain funds for various public purposes. The Fund is
more susceptible to economic and political factors adversely affecting
issuers of Ohio's specific municipal securities than are municipal bond
funds that are not concentrated in these issuers to the same extent.
CONTINUED
23----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1996
(Unaudited)
6. REORGANIZATION:
The Trust entered an Agreement and Plan of Reorganization with Paragon
pursuant to which all of the assets and liabilities of each Paragon Fund
transferred to a fund of The One Group in exchange for shares of the
corresponding fund of The One Group. The Paragon Treasury Money Market Fund
transferred its assets and liabilities to the U.S. Treasury Securities Money
Market Fund. 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 the Paragon Portfolio at a special shareholder
meeting. The following is a summary of shares outstanding, net assets and
net asset value per share immediately before and after the reorganization:
<TABLE>
<CAPTION>
BEFORE REORGANIZATION REORGANIZATION
------------------------------ ---------------
U.S. TREASURY U.S. TREASURY
PARAGON SECURITIES SECURITIES
TREASURY MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
-------------- -------------- ---------------
<S> <C> <C> <C>
Shares (000)......................................................... 356,742 1,735,489 2,092,231
Net Assets (000)..................................................... $ 356,742 $ 1,735,505 $ 2,092,247
Net Asset Value:
Fiduciary........................................................ $ 1.00 $ 1.00
Class A.......................................................... $ 1.00 $ 1.00 $ 1.00
</TABLE>
- ----24
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
-------------------------------------------------------------------------------------
FIDUCIARY
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED JUNE 30,
DECEMBER 31, -------------------------------------------------------------------
1996 1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -----------
Investment Activities
Net investment income............. 0.025 0.052 0.050 0.030 0.029 0.043
------------- ----------- ----------- ----------- ----------- -----------
Less: Distributions
Net investment income............. (0.025)(a) (0.052) (0.050) (0.030) (0.029) (0.043)
------------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
END OF PERIOD...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total Return........................ 2.51%(b) 5.34% 5.07% 3.01% 2.89% 4.40%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 2,344,946 $ 1,844,590 $ 1,178,091 $ 969,326 $ 492,862 $ 410,146
Ratio of expenses to average net
assets.......................... 0.43%(c) 0.42% 0.41% 0.40% 0.45% 0.55%
Ratio of net investment income to
average net assets.............. 4.94%(c) 5.17% 4.96% 3.02% 2.85% 4.25%
Ratio of expenses to average net
assets*......................... 0.55%(c) 0.56% 0.59% 0.58% 0.67% 0.77%
Ratio of net investment income to
average net assets*............. 4.82%(c) 5.03% 4.78% 2.84% 2.63% 4.04%
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Includes $.000002 short term capital gain.
</TABLE>
<TABLE>
<C> <S>
(b) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
-------------------------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------------------------
SIX MONTHS FEBRUARY 18,
ENDED YEARS ENDED JUNE 30, 1992 TO
DECEMBER 31, ----------------------------------------------------- DECEMBER 31,
1996 1996 1995 1994 1993 1992(A)
------------- ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -------------
Investment Activities
Net investment income............. 0.024 0.050 0.047 0.027 0.026 0.012
------------- ----------- ----------- ----------- ----------- -------------
Less: Distributions
Net investment income............. (0.024)(d) (0.050) (0.047) (0.027) (0.026) (0.012)
------------- ----------- ----------- ----------- ----------- -------------
NET ASSET VALUE, END OF PERIOD...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -------------
------------- ----------- ----------- ----------- ----------- -------------
Total Return........................ 2.39%(c) 5.08% 4.81% 2.76% 2.63% 3.38%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 338,587 $ 110,864 $ 98,723 $ 53,423 $ 30,759 $ 6
Ratio of expenses to average net
assets.......................... 0.69%(b) 0.67% 0.66% 0.63% 0.65% 0.59%(b)
Ratio of net investment income to
average net assets.............. 4.70%(b) 4.92% 4.71% 2.81% 2.52% 2.51%(b)
Ratio of expenses to average net
assets*......................... 0.91%(b) 0.91% 0.94% 0.87% 1.02% 0.71%(b)
Ratio of net investment income to
average net assets*............. 4.48%(b) 4.68% 4.43% 2.57% 2.15% 2.39%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Includes $.000002 short term capital gain.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----26
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY
SECURITIES
MONEY MARKET
FUND
---------------
CLASS B
---------------
NOVEMBER 21,
1996 TO
DECEMBER 31,
1996(A)
---------------
<S> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD.................................................. $ 1.000
---------------
Investment Activities
Net investment income............................................... 0.004
---------------
Less: Distributions
Net investment income............................................... (0.004)(d)
---------------
NET ASSET VALUE, END OF PERIOD........................................ $ 1.000
---------------
---------------
Total Return.......................................................... 0.45%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................... $ 36
Ratio of expenses to average net assets............................. 1.45%(b)
Ratio of net investment income to average net assets................ 3.92%(b)
Ratio of expenses to average net assets*............................ 1.57%(b)
Ratio of net investment income to average net assets*............... 3.80%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
<TABLE>
<C> <S>
(d) Includes $.000002 short term capital gain.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
-----------------------------------------------------------------------------------------
FIDUCIARY
-----------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED JUNE 30,
DECEMBER 31, -----------------------------------------------------------------------
1996 1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- ---------------
Investment Activities
Net investment income............. 0.025 0.054 0.052 0.031 0.030 0.045
------------- ----------- ----------- ----------- ----------- ---------------
Less: Distributions
Net investment income............. (0.025) (0.054) (0.052) (0.031) (0.030) (0.045)
------------- ----------- ----------- ----------- ----------- ---------------
NET ASSET VALUE, END OF PERIOD...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- ---------------
------------- ----------- ----------- ----------- ----------- ---------------
Total Return........................ 2.57%(b) 5.49% 5.34% 3.19% 3.09% 4.64%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 2,322,235 $ 2,186,562 $ 1,965,416 $ 1,600,876 $ 979,275 $ 946,504
Ratio of expenses to average net
assets.......................... 0.47%(a) 0.44% 0.41% 0.40% 0.44% 0.59%
Ratio of net investment income to
average net assets.............. 5.04%(a) 5.34% 5.27% 3.18% 3.05% 4.49%
Ratio of expenses to average net
assets*......................... 0.54%(a) 0.55% 0.57% 0.59% 0.62% 0.76%
Ratio of net investment income to
average net assets*............. 4.97%(a) 5.23% 5.12% 2.99% 2.87% 4.32%
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Annualized.
</TABLE>
<TABLE>
<C> <S>
(b) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----28
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
-----------------------------------------------------------------------------------
CLASS A
-----------------------------------------------------------------------------------
FEBRUARY
SIX MONTHS 18, 1992 TO
ENDED YEARS ENDED JUNE 30, DECEMBER
DECEMBER 31, ----------------------------------------------------- 31, 1992
1996 1996 1995 1994 1993 (a)
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -----------
Investment Activities
Net investment income............. 0.024 0.051 0.050 0.027 0.030 0.013
------------- ----------- ----------- ----------- ----------- -----------
Less: Distributions
Net investment income............. (0.024) (0.051) (0.050) (0.027) (0.030) (0.013)
------------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total Return........................ 2.44%(c) 5.22% 5.08% 2.93% 2.83% 3.51%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 315,790 $ 315,374 $ 201,968 $ 74,759 $ 61,106 $ 511
Ratio of expenses to average net
assets.......................... 0.72%(b) 0.69% 0.67% 0.65% 0.65% 0.79%(b)
Ratio of net investment income to
average net assets.............. 4.79%(b) 5.09% 5.02% 2.92% 2.67% 3.40%(b)
Ratio of expenses to average net
assets*......................... 0.89%(b) 0.90% 0.92% 0.90% 0.99% 0.94%(b)
Ratio of net investment income to
average net assets*............. 4.62%(b) 4.88% 4.77% 2.67% 2.33% 3.25%(b)
</TABLE>
- ---------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY
MARKET FUND
---------------
CLASS B
---------------
NOVEMBER 21,
1996 TO
DECEMBER 31,
1996(a)
---------------
<S> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD................................................. $ 1.000
-------
Investment Activities
Net investment income............................................... 0.006
-------
Less: Distributions
Net investment income............................................... (0.006)
-------
NET ASSET VALUE,
END OF PERIOD....................................................... $ 1.000
-------
-------
Total Return.......................................................... 0.56%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................... $ 123
Ratio of expenses to average net assets............................. 1.47%(b)
Ratio of net investment income to average net assets................ 4.04%(b)
Ratio of expenses to average net assets*............................ 1.54%(b)
Ratio of net investment income to average net assets*............... 3.97%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----30
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
---------------------------------
SERVICE/ RETIREMENT(A)
---------------------------------
YEARS ENDED JUNE 30,
---------------------------------
1995 1994
------------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................................. $ 1.000 $ 1.000
------------- -------------
Investment Activities
Net investment income............................................... 0.041 0.008
------------- -------------
Less: Distributions
Net investment income............................................... (0.041) (0.008)
------------- -------------
NET ASSET VALUE, END OF PERIOD........................................ $ 1.000 $ 1.000
------------- -------------
------------- -------------
Total Return.......................................................... (a) 0.79%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................... $ -- $ 40
Ratio of expenses to average net assets............................. 1.42%(b) 1.18%(b)
Ratio of net investment income to average net assets................ 4.52%(b) 3.03%(b)
Ratio of expenses to average net assets*............................ 1.60%(b) 1.36%(b)
Ratio of net investment income to average net assets*............... 5.23%(b) 2.85%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) The Service Shares commenced offering on January 17, 1994 when they designated as "Retirement" Shares. On
April 4, 1995 the name of the Retirement Shares was changed to "Service" Shares. As of June 1, 1995,
Service Shares transferred to Class A Shares. As on June 30, 1995 there were no shareholders in the
Service Class. Total return for the period from July 1, 1994 to June 1, 1995 for the Service Shares was
4.11%.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
-------------------------------------------------------------------------------------
FIDUCIARY
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED JUNE 30,
DECEMBER 31, -------------------------------------------------------------------
1996 1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -----------
Investment Activities
Net investment income............. 0.015 0.033 0.032 0.021 0.021 0.034
------------- ----------- ----------- ----------- ----------- -----------
Less: Distributions
Net investment income............. (0.015) (0.033) (0.032) (0.021) (0.021) (0.034)
------------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total Return........................ 1.55%(b) 3.34% 3.28% 2.16% 2.15% 3.47%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 461,544 $ 459,807 $ 437,743 $ 352,702 $ 175,277 $ 170,961
Ratio of expenses to average net
assets.......................... 0.43%(a) 0.41% 0.41% 0.40% 0.46% 0.43%
Ratio of net investment income to
average net assets.............. 3.10%(a) 3.29% 3.26% 2.13% 2.12% 3.41%
Ratio of expenses to average net
assets*......................... 0.57%(a) 0.59% 0.59% 0.60% 0.66% 0.80%
Ratio of net investment income to
average net assets*............. 2.96%(a) 3.11% 3.08% 1.93% 1.92% 3.04%
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Annualized.
</TABLE>
<TABLE>
<C> <S>
(b) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----32
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
-------------------------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------------------------
SIX MONTHS FEBRUARY 18,
ENDED YEARS ENDED JUNE 30, 1992 TO
DECEMBER 31, ----------------------------------------------------- DECEMBER 31,
1996 1996 1995 1994 1993 1992(a)
------------- ----------- ----------- ----------- ----------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -------------
Investment Activities
Net investment income........... 0.015 0.030 0.030 0.021 0.019 0.009
------------- ----------- ----------- ----------- ----------- -------------
Less: Distributions
Net investment income........... (0.015) (0.030) (0.030) (0.021) (0.019) (0.009)
------------- ----------- ----------- ----------- ----------- -------------
NET ASSET VALUE, END OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- ----------- -------------
------------- ----------- ----------- ----------- ----------- -------------
Total Return...................... 1.47%(c) 3.08% 3.02% 1.96% 1.89% 2.48%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)......................... $ 42,085 $ 50,720 $ 56,518 $ 41,595 $ 18,932 $ 122
Ratio of expenses to average net
assets........................ 0.68%(b) 0.66% 0.66% 0.65% 0.66% 0.84%(b)
Ratio of net investment income
to average net assets......... 2.85%(b) 3.04% 3.01% 1.92% 1.82% 2.44%(b)
Ratio of expenses to average net
assets*....................... 0.92%(b) 0.94% 0.94% 0.91% 1.01% 0.99%(b)
Ratio of net investment income
to average net assets*........ 2.61%(b) 2.76% 2.73% 1.66% 1.47% 2.29%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33----
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
-----------------------------------------------------------------------
FIDUCIARY
-----------------------------------------------------------------------
SIX MONTHS JUNE 9,
ENDED YEARS ENDED JUNE 30, 1993 TO
DECEMBER 31, --------------------------------------- JUNE 30,
1996 1996 1995 1994 1993 (a)
------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- -----------
Investment Activities
Net investment income............. 0.016 0.033 0.032 0.022 0.013
------------- ----------- ----------- ----------- -----------
Less: Distributions
Net investment income............. (0.016) (0.032) (0.032) (0.022) (0.013)
In excess of net investment
income.......................... -- (0.001) -- -- --
------------- ----------- ----------- ----------- -----------
Total Distributions................. (0.016) (0.033) (0.032) (0.022) (0.013)
------------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- -----------
Total Return........................ 1.57%(c) 3.34% 3.20% 2.25% 2.14%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 52,910 $ 55,915 $ 51,806 $ 55,375 $ 3,500
Ratio of expenses to average net
assets.......................... 0.40%(b) 0.41% 0.41% 0.34% 0.08%(b)
Ratio of net investment income to
average net assets.............. 3.09%(b) 3.19% 3.13% 2.29% 2.07%(b)
Ratio of expenses to average net
assets*......................... 0.55%(b) 0.71% 0.60% 0.57% 0.51%(b)
Ratio of net investment income to
average net assets*............. 2.94%(b) 2.89% 2.94% 2.06% 1.64%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----34
<PAGE>
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- -------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
-----------------------------------------------------------------------
CLASS A
-----------------------------------------------------------------------
SIX MONTHS JANUARY 26,
ENDED YEARS ENDED JUNE 30, 1993 TO
DECEMBER 31, --------------------------------------- JUNE 30,
1996 1996 1995 1994 1993 (a)
------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
(UNAUDITED)
NET ASSET VALUE,
BEGINNING OF PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- -----------
Investment Activities
Net investment income............. 0.014 0.030 0.029 0.021 0.009
------------- ----------- ----------- ----------- -----------
Less: Distributions
Net investment income............. (0.014) (0.029) (0.029) (0.021) (0.009)
In excess of net investment
income.......................... -- (0.001) -- -- --
------------- ----------- ----------- ----------- -----------
Total Distributions................. (0.014) (0.030) (0.029) (0.021) (0.009)
------------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- -----------
Total Return........................ 1.44%(c) 3.08% 2.98% 2.09% 2.34%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $ 36,279 $ 41,132 $ 35,790 $ 37,356 $ 25,125
Ratio of expenses to average net
assets.......................... 0.65%(b) 0.66% 0.63% 0.44% 0.26%(b)
Ratio of net investment income to
average net assets.............. 2.84%(b) 2.94% 2.91% 2.05% 2.03%(b)
Ratio of expenses to average net
assets*......................... 0.90%(b) 1.06% 0.95% 0.94% 0.92%(b)
Ratio of net investment income to
average net assets*............. 2.59%(b) 2.54% 2.59% 1.55% 1.37%(b)
</TABLE>
- ----------
<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
</TABLE>
<TABLE>
<C> <S>
(a) Period from commencement of operations.
</TABLE>
<TABLE>
<C> <S>
(b) Annualized.
</TABLE>
<TABLE>
<C> <S>
(c) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35----
