<PAGE> 1
The One(R)
Investor
Program(SM)
Semi-Annual Report
For the six months ended December 31, 1997
The One Group Investor Growth Fund
The One Group Investor Growth & Income Fund
The One Group Investor Balanced Fund
The One Group Investor Conservative Growth Fund
[THE ONE GROUP FAMILY OF MUTUAL FUNDS LOGO]
<PAGE> 2
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Important Customer Information. Investment Products:
* are not deposits or obligations of, or guaranteed by,
BANC ONE CORPORATION or any of its affiliates,
* are not insured by the FDIC, and
----
* are subject to investment risks, including possible FDIC
loss of the principal amount invested. LOGO
----
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Table of Contents
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
Report From Your Investment Advisor........................................ 2
Portfolio Performance Review............................................... 4
Schedules of Portfolio Investments.......................................... 6
Statements of Assets and Liabilities....................................... 10
Statements of Operations................................................... 11
Statements of Changes in Net Assets........................................ 12
Notes to Financial Statements.............................................. 14
Financial Highlights....................................................... 20
1
<PAGE> 4
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Report From Your Investment Advisor
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
We are pleased to present this semiannual report for The One Group(R) 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, 1997, through
December 31, 1997.
DEAR VALUED SHAREHOLDER:
Thank you for continuing to support The One Group Family of Mutual Funds during
an interesting, challenging and ultimately rewarding year for investors.
Despite strong volatility throughout 1997 and turmoil in Asia, the Dow Jones
Industrial Average was up 24.94% for 1997. Never before had the index returned
more than 20% for three consecutive years. The S&P 500 Index soared even higher,
closing the year up 33.36%.
At the same time, and largely the result of low inflation, a strong U.S. dollar
and the flight to quality spurred by the Asian crisis, U.S. bond yields ended
the year on an impressive note. The 30-year Treasury, for example, ended the
year yielding 5.92%, close to its 20-year low. (As bond yields fall, bond prices
go up.)
ONCE AGAIN, A PHILOSOPHY REINFORCED
While the calendar-year returns for both the stock and bond markets are
impressive, events in the final six months of 1997 may be the most memorable. On
August 6, the Dow closed at 8,259, a record high and its peak for the calendar
year. Shortly thereafter, though, volatility rocked the market, as the effects
of the Asian financial crisis worked their way west. These forces culminated on
Monday, October 27, when the Dow plummeted more than 554 points, its
largest-ever point decline.
This drop may be the defining moment for 1997's financial markets, and it
presented a significant challenge for investors. But, rather than panicking,
shareholders of The One Group demonstrated a clear understanding of market
dynamics and the importance of maintaining a long-term investment philosophy.
I am pleased to report that there were no significant redemptions of One Group
shares after "Black Monday." To us, this implies that our investors understand
the potential dangers of selling their investments based on short-term
volatility. In fact, The One Group experienced a record purchase day on Tuesday,
October 28, indicating that investors realize the benefits of staying focused on
the stock market's long-term potential.
TAX BILL CHANGES FACE OF INVESTING
The second half of 1997 may be remembered as much for the jubilance it brought
investors as for the turmoil. The Taxpayer Relief Act of 1997 became law,
ushering in lower capital gains taxes for investors and new investment
opportunities poised to change the face of investing for years to come.
The cut in the capital gains tax rate may make investing in stocks even more
attractive for many investors. As you are planning for your future financial
needs and taking into consideration your appropriate asset allocation, please do
not overlook the impact of the new tax treatment of capital gains.
And, while you're planning for your financial future, take note that the 1997
tax law makes investing in IRAs even more attractive, particularly with the
introduction of the Roth IRA, a new type of account that offers tax-exempt
distributions in retirement. In addition, the Traditional IRA has been enhanced
with many new features.
The One Group can help you incorporate any of these retirement accounts into
your investment plan. Speak to your investment representative or call
1-800-480-4111 for more information on IRAs.
SEEK ADVICE FOR A YEAR'S WORTH OF EVENTS
With 1997's record volatility and the new investment opportunities introduced by
the tax law, now may be an ideal time to meet with your investment professional
and make sure your investment plan remains on track to meet your financial
needs.
As you probably know, your asset allocation--or the way your investment dollars
are strategically distributed among stock, bond and cash investments according
to your goals, risk tolerance and investing time frame--may be the
single-greatest determinant of your long-term investment success. After a year
full of market ups and downs, your asset allocation probably shifted. For
example, stock market appreciation may have caused your allocation to equities
to swing higher than called for in your plan. Your investment professional can
help you evaluate your plan and, if necessary, get it back on track.
2
<PAGE> 5
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Report From Your Investment Advisor, continued
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
Furthermore, your investment representative can help you make the most of the
Taxpayer Relief Act of 1997. Many of the provisions take effect with the 1998
tax year, so make sure you start off the year with the strategy that's most
appropriate for you.
Thank you for investing with The One Group Family of Mutual Funds and for your
ongoing support of the firm's time-tested investment philosophies. We look
forward to helping you achieve your financial goals in 1998 and beyond.
Sincerely,
LOGO
David J. Kundert
President and CEO,
Banc One Investment Advisors Corporation,
Investment Advisor to The One Group
David J. Kundert photo
For a prospectus with more complete information on The One Group Investor Funds,
including management fees and expenses, please contact The One Group at
1-800-480-4111. Please read the prospectus carefully before investing.
(2/98)
3
<PAGE> 6
The One Group Investor Funds
Portfolio Performance Review
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
ECONOMIC GROWTH REMAINS STRONG
Despite showing a slight slowdown from the first half of the year, U.S. economic
growth during the second half of 1997 remained robust at a growth rate of 3.7%.
For the entire 12-month period, the U.S. economy grew by a 3.8% growth rate.
Firm employment gains and strong consumer confidence fueled the growth rate. The
unemployment rate headed steadily downward, ending the year at 4.7%. The economy
witnessed an average of 301,500 new non-farm jobs being created per month, when
all that is needed to absorb the growth in the labor force and keep the
unemployment rate steady is 150,000.
LONG-TERM INTEREST RATES DECLINE
Slightly higher inflation in 1996 kept long-term interest rates relatively high
throughout much of 1997. With prices climbing 3.3% on a year-over-year basis in
1996, investors feared that inflation would keep that pace or even climb higher
in 1997.
But, as the year unfolded it became apparent that inflation was, indeed, under
control. For the final six months of the year the inflation rate was 2.0%, and
for the entire year prices were up only 1.7%, the best performance in 11 years.
Low prices helped pave the way for a significant decline in long-term interest
rates by the end of the year. Also significant was the impact of the Asian
financial crisis, which caused currency values to plunge and sent financial
markets into turmoil. As worldwide events unfolded during the second half of the
year, it became clear that the Asian economies would weaken. This caused
investors throughout the world to turn to the safety of U.S. Treasury
securities, which helped drive up prices.
As a result of these events, long-term interest rates showed a significant
decline during the second half of 1997--a decline that was much greater than the
economic fundamentals supported. At the end of the year, the yield on the
30-year U.S. Treasury bond was 5.92%, after starting the year at 6.64% and
climbing to a high of 7.17% in early April.
FED REMAINS IDLE
The Federal Reserve remained on the sidelines during the second half of the
year, after raising interest rates just once in all of 1997--a 0.25% increase of
the federal funds rate in March. This lack of monetary policy action kept
short-term interest rates relatively steady for the remainder of the year.
The impact of the Asian currency crisis and market meltdowns may have
contributed to the Fed's decision to keep rates unchanged in the second half of
1997. While strong economic growth certainly created a valid reason for another
rate hike, the Fed resisted the temptation, figuring that the Asian situation
would contribute to slower growth ahead.
LOOKING AHEAD
In terms of U.S. economic growth, the Asian crisis remains a factor that can't
be ignored. Thirty percent of U.S. exports go to Asia, and with many Asian
countries facing currency devaluations of 35% to 80%, consumers in that region
have significantly less purchasing power. Furthermore, there's the possibility
that this currency crisis could spread to Latin America, where another 20% of
U.S. exports are at risk if there are some currency devaluations.
The United States accounts for 28% of the non-Asian global economy, and,
therefore, should be heavily influenced by the change in trade flows from Asia.
Asian stock markets have dropped nearly 70% over the last several months, which
undoubtedly will be reflected in lower overall consumption, particularly for
foreign imports. And, as prices on goods produced in Asia continue to fall, U.S.
imports from that region should go up.
As a result, cheaper goods coming from Asia, and possibly Latin America, should
force domestic competitors to lower their prices (or face sharply lower sales
prospects). This could push the U.S. inflation rate to as low as 1.5% in 1998,
compared to 1.7% in 1997 and 3.3% in 1996. At the same time, fewer U.S. exports
and greater imports should cause economic growth to slow to a 2% year-over-year
average for 1998.
4
<PAGE> 7
The One Group Investor Funds
Portfolio Performance Review, continued
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
Given all the instability overseas and the impending effects of a slowdown in
the U.S. economy, we believe that the Federal Reserve will lower interest rates
in 1998, probably sometime in the second half of the year. Long-term interest
rates should continue their downward trend, due to lower inflation and lower
economic growth. By the end of the year, we may see the yield on the 30-year
Treasury bond somewhere between 5.5% and 5.75%.
/s/ Anthony Chan
Anthony Chan, Ph.D.
Managing Director and Chief Economist
Banc One Investment Advisors
5
<PAGE> 8
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The One Group Family of Mutual Funds
Investor Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (99.3%):
971 The One Group Disciplined Value Fund
Fiduciary Class....................... $ 15,607
424 The One Group Government Bond Fund
Fiduciary Class....................... 4,245
746 The One Group Growth Opportunities
Fund Fiduciary Class.................. 14,499
443 The One Group Income Bond Fund
Fiduciary Class....................... 4,198
209 The One Group Intermediate Bond Fund
Fiduciary Class....................... 2,106
620 The One Group International Equity
Index Fund Fiduciary Class............ 9,436
785 The One Group Large Company Growth
Fund Fiduciary Class.................. 14,324
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
982 The One Group Large Company Value Fund
Fiduciary Class....................... $ 14,913
200 The One Group Limited Volatility Fund
Fiduciary Class....................... 2,096
1,055 The One Group Prime Money Market Fund
Fiduciary Class....................... 1,055
327 The One Group Small Capitalization
Fund Fiduciary Class.................. 3,708
1,453 The One Group Value Growth Fund
Fiduciary Class....................... 16,785
--------
Total Investment Companies 102,972
--------
Total (Cost $100,844) (a) $102,972
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $103,689.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $4,298
Unrealized depreciation...................... (2,170)
------
Net unrealized appreciation.................. $2,128
======
</TABLE>
See notes to financial statements.
6
<PAGE> 9
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The One Group Family of Mutual Funds
Investor Growth & Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (98.7%):
947 The One Group Disciplined Value Fund
Fiduciary Class....................... $ 15,222
1,293 The One Group Government Bond Fund
Fiduciary Class....................... 12,942
728 The One Group Growth Opportunities
Fund Fiduciary Class.................. 14,146
1,350 The One Group Income Bond Fund
Fiduciary Class....................... 12,798
766 The One Group Intermediate Bond Fund
Fiduciary Class....................... 7,703
588 The One Group International Equity
Index Fund Fiduciary Class............ 8,962
820 The One Group Large Company Growth
Fund Fiduciary Class.................. 14,963
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
1,026 The One Group Large Company Value Fund
Fiduciary Class....................... $ 15,582
488 The One Group Limited Volatility Fund
Fiduciary Class....................... 5,112
1,286 The One Group Prime Money Market Fund
Fiduciary Class....................... 1,286
260 The One Group Ultra Short-Term Income
Fund Fiduciary Class.................. 2,573
1,329 The One Group Value Growth Fund
Fiduciary Class....................... 15,349
--------
Total Investment Companies 126,638
--------
Total (Cost $124,375) (a) $126,638
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $128,253.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $4,144
Unrealized depreciation...................... (1,881)
------
Net unrealized appreciation.................. $2,263
======
</TABLE>
See notes to financial statements.
7
<PAGE> 10
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The One Group Family of Mutual Funds
Investor Conservative Growth Fund
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SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (98.0%):
51 The One Group Disciplined Value Fund
Fiduciary Class....................... $ 819
1,044 The One Group Government Bond Fund
Fiduciary Class....................... 10,447
39 The One Group Growth Opportunities
Fund Fiduciary Class.................. 761
915 The One Group Income Bond Fund
Fiduciary Class....................... 8,678
79 The One Group Income Equity Fund
Fiduciary Class....................... 1,688
536 The One Group Intermediate Bond Fund
Fiduciary Class....................... 5,389
108 The One Group International Equity
Index Fund Fiduciary Class............ 1,651
110 The One Group Large Company Growth
Fund Fiduciary Class.................. 2,014
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
138 The One Group Large Company Value Fund
Fiduciary Class....................... $ 2,097
315 The One Group Limited Volatility Fund
Fiduciary Class....................... 3,301
831 The One Group Prime Money Market Fund
Fiduciary Class....................... 831
168 The One Group Ultra Short-Term Income
Fund Fiduciary Class.................. 1,662
179 The One Group Value Growth Fund
Fiduciary Class....................... 2,065
--------
Total Investment Companies 41,403
--------
Total (Cost $41,030) (a) $ 41,403
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $42,260.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $ 693
Unrealized depreciation...................... (320)
------
Net unrealized appreciation.................. $ 373
======
</TABLE>
See notes to financial statements.
8
<PAGE> 11
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The One Group Family of Mutual Funds
Investor Balanced Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (98.5%):
527 The One Group Disciplined Value Fund
Fiduciary Class....................... $ 8,477
2,098 The One Group Government Bond Fund
Fiduciary Class....................... 20,997
405 The One Group Growth Opportunities
Fund Fiduciary Class.................. 7,877
2,062 The One Group Income Bond Fund
Fiduciary Class....................... 19,544
1,096 The One Group Intermediate Bond Fund
Fiduciary Class....................... 11,029
401 The One Group International Equity
Index Fund Fiduciary Class............ 6,107
588 The One Group Large Company Growth
Fund Fiduciary Class.................. 10,717
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
735 The One Group Large Company Value Fund
Fiduciary Class....................... $ 11,158
698 The One Group Limited Volatility Fund
Fiduciary Class....................... 7,319
0 The One Group Prime Money Market Fund
Fiduciary Class (b)................... 0
497 The One Group Ultra Short-Term Income
Fund Fiduciary Class.................. 4,912
1,057 The One Group Value Growth Fund
Fiduciary Class....................... 12,212
--------
Total Investment Companies 120,349
--------
Total (Cost $116,543) (a) $120,349
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $122,241.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $4,825
Unrealized depreciation...................... (1,019)
------
Net unrealized appreciation.................. $3,806
======
</TABLE>
(b) Rounds to less than 1,000.
See notes to financial statements.
9
<PAGE> 12
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The One Group Family of Mutual Funds
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STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1997
(Amounts in Thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR INVESTOR GROWTH CONSERVATIVE INVESTOR
GROWTH FUND & INCOME FUND GROWTH FUND BALANCED FUND
----------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $100,844; $124,375;
$41,030; and $116,543; respectively).............. $102,972 $126,638 $ 41,403 $120,349
Cash................................................ 443 1,661 364 1,299
Dividends receivable................................ 124 261 160 366
Receivable for capital shares issued................ 275 117 451 622
Receivable from Administrator....................... 56 33 72 20
-------- -------- -------- --------
TOTAL ASSETS........................................ 103,870 128,710 42,450 122,656
-------- -------- -------- --------
LIABILITIES:
Dividends payable................................... 76 218 144 340
Payable for capital shares redeemed................. 42 169 4 13
Accrued expenses and other payables:
Investment advisory fees........................ 1 1 -- 4
12b-1 fees...................................... 29 31 13 23
Other........................................... 33 38 29 35
-------- -------- -------- --------
TOTAL LIABILITIES................................... 181 457 190 415
-------- -------- -------- --------
NET ASSETS:
Capital............................................. 96,895 121,589 41,373 115,321
Accumulated undistributed net realized gains
(losses) from investment transactions............. 4,666 4,401 514 3,114
Unrealized appreciation from investments............ 2,128 2,263 373 3,806
-------- -------- -------- --------
NET ASSETS.......................................... $103,689 $128,253 $ 42,260 $122,241
======== ======== ======== ========
NET ASSETS:
Fiduciary....................................... $ 52,831 $ 75,782 $ 22,852 $ 85,021
Class A......................................... 17,581 15,719 3,334 10,111
Class B......................................... 29,285 34,254 13,791 24,509
Class C......................................... 3,992 2,498 2,283 2,600
-------- -------- -------- --------
Total........................................... $103,689 $128,253 $ 42,260 $122,241
======== ======== ======== ========
OUTSTANDING UNITS OF BENEFICIAL INTEREST (SHARES):
Fiduciary....................................... 4,435 6,618 2,160 7,730
Class A......................................... 1,483 1,360 316 917
Class B......................................... 2,442 2,972 1,304 2,225
Class C......................................... 336 219 216 237
-------- -------- -------- --------
Total........................................... 8,696 11,169 3,996 11,109
======== ======== ======== ========
Net Asset Value:
Fiduciary
Offering and redemption price per share..... $ 11.91 $ 11.45 $ 10.58 $ 11.00
======== ======== ======== ========
Class A
Redemption price per share.................. $ 11.86 $ 11.55 $ 10.57 $ 11.02
======== ======== ======== ========
Maximum sales charge........................ 4.50% 4.50% 4.50% 4.50%
======== ======== ======== ========
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest
cent)..................................... $ 12.42 $ 12.09 $ 11.07 $ 11.54
======== ======== ======== ========
Class B
Offering price per share (a)................ $ 11.99 $ 11.53 $ 10.57 $ 11.02
======== ======== ======== ========
Class C
Offering price per share (a)................ $ 11.88 $ 11.43 $ 10.55 $ 10.98
======== ======== ======== ========
</TABLE>
- ------------
(a) Redemption price varies based on length of time shares are held.
See notes to financial statements.
10
<PAGE> 13
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR INVESTOR GROWTH CONSERVATIVE INVESTOR
GROWTH FUND & INCOME FUND GROWTH FUND BALANCED FUND
------------- ---------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................... $ 6 $ 6 $ 5 $ 5
Distribution income................. 499 1,145 707 1,807
------ ------ ------ ------
TOTAL INCOME........................ 505 1,151 712 1,812
------ ------ ------ ------
EXPENSES:
Investment advisory fees............ 17 22 7 25
Administration fees................. 34 44 14 49
12b-1 fees (Class A)................ 19 17 4 10
12b-1 fees (Class B)................ 86 102 35 69
12b-1 fees (Class C)................ 10 3 4 4
Custodian and accounting fees....... 23 21 22 18
Legal and audit fees................ 1 1 -- 1
Transfer agent fees................. 29 31 27 26
Registration and filing fees........ 38 40 31 44
Printing costs...................... 21 18 13 9
Other............................... 3 3 2 --
------ ------ ------ ------
Total expenses before waivers/
reimbursements.................... 281 302 159 255
Less waivers/reimbursements......... (97) (90) (83) (72)
------ ------ ------ ------
NET EXPENSES........................ 184 212 76 183
------ ------ ------ ------
Net Investment Income............... 321 939 636 1,629
------ ------ ------ ------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions........... 7,253 7,165 876 5,427
Net change in unrealized
appreciation (depreciation) from
investments....................... (1,968) (1,570) (88) (674)
------ ------ ------ ------
Net realized/unrealized gains from
investments....................... 5,285 5,595 788 4,753
------ ------ ------ ------
Change in net assets resulting from
operations........................ $5,606 $6,534 $1,424 $6,382
====== ====== ====== ======
</TABLE>
See notes to financial statements.
11
<PAGE> 14
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
INVESTOR GROWTH &
INVESTOR GROWTH FUND INCOME FUND
--------------------------- ---------------------------
SIX MONTHS DECEMBER 10, SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(a) 1997 1997(a)
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net Investment Income...................... $ 321 $ 256 $ 939 $ 556
Net realized gains (losses) from investment
transactions............................ 7,253 (59) 7,165 (87)
Net change in unrealized appreciation
(depreciation) from investments......... (1,968) 4,096 (1,570) 3,833
-------- -------- -------- --------
Change in net assets resulting from
operations................................... 5,606 4,293 6,534 4,302
-------- -------- -------- --------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income................. (233) (227) (673) (494)
From net realized gains.................... (1,180) -- (1,513) --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income................. (57) (14) (109) (24)
From net realized gains.................... (471) -- (348) --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................. (27) (15) (150) (38)
From net realized gains.................... (776) -- (761) --
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income................. (4) -- (7) --
From net realized gains.................... (101) -- (55) --
-------- -------- -------- --------
Change in net assets from shareholder
distributions................................ (2,849) (256) (3,616) (556)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................ 50,771 41,705 58,801 58,244
Proceeds from shares issued in connection
with conversion......................... 10,702 -- 12,936 --
Dividends reinvested....................... 2,530 25 2,952 49
Cost of shares redeemed.................... (6,479) (2,359) (6,172) (5,221)
-------- -------- -------- --------
Change in net assets from share transactions... 57,524 39,371 68,517 53,072
-------- -------- -------- --------
Change in net assets........................... 60,281 43,408 71,435 56,818
NET ASSETS:
Beginning of period........................ 43,408 -- 56,818 --
-------- -------- -------- --------
End of period.............................. $103,689 $ 43,408 $128,253 $ 56,818
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued..................................... 4,243 4,079 5,108 5,697
Issued in connection with conversion....... 922 -- 1,150 --
Reinvested................................. 215 3 258 4
Redeemed................................... (538) (227) (537) (510)
-------- -------- -------- --------
Change in shares............................... 4,842 3,855 5,979 5,191
======== ======== ======== ========
</TABLE>
- ------------
(a) Period from commencement of operations.
See notes to financial statements.
12
<PAGE> 15
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
INVESTOR CONSERVATIVE
GROWTH FUND INVESTOR BALANCED FUND
--------------------------- ---------------------------
SIX MONTHS DECEMBER 10, SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(a) 1997 1997(a)
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net Investment Income...................... $ 636 $ 333 $ 1,629 $ 1,187
Net realized gains (losses) from investment
transactions............................ 876 9 5,427 (67)
Net change in unrealized appreciation
(depreciation) from investments......... (88) 461 (674) 4,480
-------- -------- -------- --------
Change in net assets resulting from
operations................................... 1,424 803 6,382 5,600
-------- -------- -------- --------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income................. (426) (296) (1,322) (1,132)
From net realized gains.................... (205) -- (1,584) --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income................. (51) (14) (101) (15)
From net realized gains.................... (29) -- (185) --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................. (139) (23) (193) (40)
From net realized gains.................... (120) -- (440) --
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income................. (20) -- (13) --
From net realized gains.................... (17) -- (37) --
-------- -------- -------- --------
Change in net assets from shareholder
distributions................................ (1,007) (333) (3,875) (1,187)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................ 23,754 21,496 45,602 78,898
Proceeds from shares issued in connection
with conversion......................... 707 -- 6,532 --
Dividends reinvested....................... 573 41 2,557 49
Cost of shares redeemed.................... (2,144) (3,054) (14,960) (3,357)
-------- -------- -------- --------
Change in net assets from share transactions... 22,890 18,483 39,731 75,590
-------- -------- -------- --------
Change in net assets........................... 23,307 18,953 42,238 80,003
NET ASSETS:
Beginning of period........................ 18,953 -- 80,003 --
-------- -------- -------- --------
End of period.............................. $ 42,260 $ 18,953 $122,241 $ 80,003
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued..................................... 2,242 2,132 4,113 7,850
Issued in connection with conversion....... 67 -- 600 --
Reinvested................................. 54 5 233 5
Redeemed................................... (201) (303) (1,363) (328)
-------- -------- -------- --------
Change in shares............................... 2,162 1,834 3,583 7,527
======== ======== ======== ========
</TABLE>
- ------------
(a) Period from commencement of operations.
See notes to financial statements.
13
<PAGE> 16
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
(Unaudited)
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company
established as a Massachusetts business trust. The accompanying financial
statements and financial highlights are those of the Investor Growth Fund,
the Investor Growth & Income Fund, the Investor Conservative Growth Fund and
the Investor Balanced Fund (individually a "Fund", collectively the "Funds")
only.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Investor Growth Fund Long-term capital appreciation by investing primarily in a
diversified group of The One Group mutual funds which
invest primarily in equity securities.
Investor Growth & Income Fund Long-term capital appreciation and growth of income by
investing primarily in a diversified group of The One Group
mutual funds which invest primarily in equity securities.
Investor Conservative Growth Fund Income and capital appreciation by investing primarily in a
diversified group of The One Group mutual funds which
invest primarily in equity and fixed income securities.
Investor Balanced Fund High total return consistent with the preservation of
capital by investing primarily in a diversified group of
The One Group mutual funds which invest primarily in equity
and fixed income securities.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements. The policies are in conformity
with generally accepted accounting principles. The preparation of financial
statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses for the period.
Actual results could differ from those estimates.
SECURITY VALUATION
Investments in The One Group mutual funds (the "Underlying Funds") are
valued at the closing net asset value per share of each Underlying Fund on
the day of valuation. Short-term investments maturing in 60 days or less
are valued at amortized cost, which approximates market value.
SECURITY TRANSACTIONS AND RELATED INCOME
Purchases and sales of the Underlying Funds are accounted for on a trade
date basis. Net realized gains or losses on sales of the Underlying Funds
are determined on the specific identification cost method. Other income and
expenses are recognized on the accrual basis. Distributions from the
Underlying Funds and dividends to the Funds' shareholders are recorded on
the ex-dividend date.
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
Continued
14
<PAGE> 17
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
bears its pro-rata portion of expenses attributable to its series, except
that each class separately bears expenses related specifically to that
class, such as distribution fees.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid monthly for the
Funds. Net realized capital gains, if any, are distributed at least
annually. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are
due to differences in separate class expenses.
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to differing treatments for expiring capital loss carryforwards and
deferrals of certain losses. Permanent book and tax basis differences,
which affect shareholder distributions, will be reclassified to additional
paid-in capital.
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each Fund intends to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and from
net realized capital gains sufficient to relieve it from all, or
substantially all, Federal income taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value, which may, without shareholder approval, be divided into an
unlimited number of series of such shares and any series may be classified or
reclassified into one or more classes. The Trust is registered to offer forty
series and five classes of shares: Fiduciary Class, Class A, Class B, Class C
and Service Class. Currently, the Trust consists of thirty-three active
Funds. The Funds are each authorized to issue Fiduciary Class, Class A, Class
B and Class C Shares. Class A Shares are subject to initial sales charges,
imposed at the time of purchase, in accordance with the Funds' prospectus.
Certain redemptions of Class B and Class C Shares are subject to contingent
deferred sales charges in accordance with the Funds' prospectus. As of
December 31, 1997, 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 periods ended December 31, 1997 and June 30, 1997:
Continued
15
<PAGE> 18
-----------------------------------------------------------------------------
The One Group Family of Mutual Funds
-----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
INVESTOR GROWTH FUND
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued............................... $12,849 $30,381
Proceeds from shares issued in connection with
conversion.............................................. 10,702 --
Dividends reinvested...................................... 1,127 11
Cost of shares redeemed................................... (5,315) (2,252)
------- -------
Change in net assets from Fiduciary share transactions.... $19,363 $28,140
======= =======
CLASS A SHARES:
Proceeds from shares issued............................... $12,942 $ 4,125
Dividends reinvested...................................... 508 7
Cost of shares redeemed................................... (566) (19)
------- -------
Change in net assets from Class A share transactions...... $12,884 $ 4,113
======= =======
CLASS B SHARES:
Proceeds from shares issued............................... $21,043 $ 7,199
Dividends reinvested...................................... 792 7
Cost of shares redeemed................................... (551) (88)
------- -------
Change in net assets from Class B share transactions...... $21,284 $ 7,118
======= =======
CLASS C SHARES:
Proceeds from shares issued............................... $ 3,937 $ --
Dividends reinvested...................................... 103 --
Cost of shares redeemed................................... (47) --
------- -------
Change in net assets from Class C share transactions...... $ 3,993 $ --
======= =======
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.................................................... 1,075 3,000
Issued in connection with conversion...................... 922 --
Reinvested................................................ 96 1
Redeemed.................................................. (441) (217)
------- -------
Change in Fiduciary Shares................................ 1,652 2,784
======= =======
CLASS A SHARES:
Issued.................................................... 1,091 397
Reinvested................................................ 43 1
Redeemed.................................................. (47) (2)
------- -------
Change in Class A Shares.................................. 1,087 396
======= =======
CLASS B SHARES:
Issued.................................................... 1,746 682
Reinvested................................................ 67 1
Redeemed.................................................. (46) (8)
------- -------
Change in Class B Shares.................................. 1,767 675
======= =======
CLASS C SHARES:
Issued.................................................... 331 --
Reinvested................................................ 9 --
Redeemed.................................................. (4) --
------- -------
Change in Class C Shares.................................. 336 --
======= =======
</TABLE>
- ------------
(a) Period from commencement of operations.
(b) Rounds to less than 1,000.
Continued
16
<PAGE> 19
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
INVESTOR GROWTH & INVESTOR CONSERVATIVE INVESTOR
INCOME FUND GROWTH FUND BALANCED FUND
- ------------------------------ ------------------------------ ------------------------------
SIX MONTHS DECEMBER 10, SIX MONTHS DECEMBER 10, SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH ENDED 1996 THROUGH ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(a) 1997 1997(a) 1997 1997(a)
- ------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$20,052 $45,181 $ 8,085 $17,645 $16,325 $71,345
12,936 -- 707 -- 6,532 --
1,574 13 256 18 1,662 15
(4,860) (4,561) (1,582) (2,999) (14,031) (3,309)
------- ------- ------- ------- ------- -------
$29,702 $40,633 $ 7,466 $14,664 $10,488 $68,051
======= ======= ======= ======= ======= =======
$11,293 $ 4,604 $ 2,219 $ 1,283 $ 7,786 $ 2,092
434 14 66 8 261 9
(457) (606) (282) (29) (151) --
------- ------- ------- ------- ------- -------
$11,270 $ 4,012 $ 2,003 $ 1,262 $ 7,896 $ 2,101
======= ======= ======= ======= ======= =======
$25,001 $ 8,459 $11,173 $ 2,568 $18,923 $ 5,461
886 22 221 15 591 25
(853) (54) (254) (26) (774) (48)
------- ------- ------- ------- ------- -------
$25,034 $ 8,427 $11,140 $ 2,557 $18,740 $ 5,438
======= ======= ======= ======= ======= =======
$ 2,455 $ -- $ 2,277 $ -- $ 2,568 $ --
58 -- 30 -- 43 --
(2) -- (26) -- (4) --
------- ------- ------- ------- ------- -------
$ 2,511 $ -- $ 2,281 $ -- $ 2,607 $ --
======= ======= ======= ======= ======= =======
1,758 4,443 763 1,750 1,469 7,112
1,150 -- 67 -- 600 --
138 1 24 2 151 2
(424) (448) (149) (297) (1,279) (324)
------- ------- ------- ------- ------- -------
2,622 3,996 705 1,455 941 6,790
======= ======= ======= ======= ======= =======
976 443 210 128 703 203
38 1 6 1 24 1
(40) (57) (26) (3) (14) --
------- ------- ------- ------- ------- -------
974 387 190 126 713 204
======= ======= ======= ======= ======= =======
2,160 811 1,054 254 1,708 535
77 2 21 2 54 2
(73) (5) (24) (3) (70) (4)
------- ------- ------- ------- ------- -------
2,164 808 1,051 253 1,692 533
======= ======= ======= ======= ======= =======
214 -- 215 -- 233 --
5 -- 3 -- 4 --
--(b) -- (2) -- --(b) --
------- ------- ------- ------- ------- -------
219 -- 216 -- 237 --
======= ======= ======= ======= ======= =======
</TABLE>
Continued
17
<PAGE> 20
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and Banc One Investment Advisors Corporation (the "Advisor") are
parties to an investment advisory agreement under which the Advisor is
entitled to receive an annual fee, computed daily and paid monthly, equal to
0.05% of the average net assets of the Investor Growth Fund, the Investor
Growth & Income Fund, the Investor Conservative Growth Fund and the Investor
Balanced Fund, respectively.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administrative agreement under which the Administrator provides services for
a fee that is computed daily and payable monthly, at an annual rate of 0.10%
on the first $500 million of each Fund's average daily net assets, 0.075% of
each Fund's average daily net assets between $500 million and $1 billion, and
0.05% of each Fund's average daily net assets when Fund assets exceed $1
billion. The Advisor also serves as sub-Administrator to each Fund of the
Trust, pursuant to an agreement between the Administrator and the Advisor.
Pursuant to this agreement, the Advisor performs many of the Administrator's
duties, for which the Advisor receives a fee paid by the Administrator.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A, Class B and Class C Shares are subject to a
distribution and shareholder services plan (the "Plans") pursuant to Rule
12b-1 under the 1940 Act. As provided in the Plans, the Trust will pay the
Distributor a fee of 0.35% of the average daily net assets of Class A Shares
of each of the Funds and 1.00% of the average daily net assets of the Class B
and Class C Shares of each of the Funds. Currently, the Distributor has
voluntarily agreed to limit payments under the Plans to 0.25% of average
daily net assets of the Class A Shares of each Fund. Up to 0.25% of the fees
payable under the Plans may be used as compensation for shareholder services
by the Distributor and/or financial institutions and intermediaries. Fees
paid under the Plans may be applied by the Distributor toward (i)
compensation for its services in connection with distribution assistance or
provision of shareholder services; or (ii) payments to financial institutions
and intermediaries such as banks (including affiliates of the Advisor),
brokers, dealers and other institutions, including the Distributor's
affiliates and subsidiaries as compensation for services or reimbursement of
expenses incurred in connection with distribution assistance or provision of
shareholder services. Fiduciary Class Shares of each Fund are offered without
distribution fees. For the six months ended December 31, 1997, the
Distributor received $3,946,510 from commissions earned on sales of Class A
Shares and redemptions of Class B and Class C Shares, of which, the
Distributor re-allowed $3,946,448 to affiliated broker-dealers of the Funds.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
The Advisor, the 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, 1997, fees in the following
amounts were waived and reimbursed from the funds (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT 12b-1 FEES FEES
ADVISORY FEES ADMINISTRATION WAIVED REIMBURSED BY
WAIVED FEES WAIVED CLASS A ADMINISTRATOR
------------- --------------- ---------- -------------
<S> <C> <C> <C> <C>
Investor Growth Fund................. $14 $34 $ 5 $44
Investor Growth & Income Fund........ 18 44 5 23
Investor Conservative Growth Fund.... 6 14 1 62
Investor Balanced Fund............... 11 49 3 9
</TABLE>
Continued
18
<PAGE> 21
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the six months
ended December 31, 1997 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -------
<S> <C> <C>
Investor Growth Fund................................... $65,756 $ 4,603
Investor Growth & Income Fund.......................... 74,851 3,821
Investor Conservative Growth Fund...................... 23,258 1,121
Investor Balanced Fund................................. 54,084 12,310
</TABLE>
6. CONVERSION OF COMMON TRUST FUNDS:
On December 19, 1997 the net assets of certain common trust funds managed by
the Advisor were exchanged for shares of the corresponding One Group Funds.
The transaction was accounted for by a method followed for tax purposes in a
tax-free business combination. The following is a summary of shares issued,
net assets converted, net asset value per share issued and unrealized
appreciation of assets acquired as of the conversion date (amounts in
thousands except per share amounts):
<TABLE>
<CAPTION>
NET ASSET
SHARES NET ASSETS VALUE PER UNREALIZED
ISSUED CONVERTED SHARE ISSUED APPRECIATION
------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
Investor Growth Fund................................ 922 $10,702 $11.61 $--
Investor Growth & Income Fund....................... 1,150 $12,936 $11.25 --
Investor Conservative Growth Fund................... 67 $ 707 $10.56 --
Investor Balanced Fund.............................. 600 $ 6,532 $10.89 --
</TABLE>
19
<PAGE> 22
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
FUND
-------------------------------
FIDUCIARY
-------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ -------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.25 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.07 0.09
Net realized and unrealized gains (losses) from
investments............................................ 1.01 1.25
------- -------
Total from Investment Activities....................... 1.08 1.34
------- -------
Distributions
From net investment income................................ (0.07) (0.09)
From net realized gains................................... (0.35) 0.00
------- -------
Total Distributions.................................... (0.42) (0.09)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.91 $ 11.25
======= =======
Total Return................................................ 9.66%(b) 13.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $52,831 $31,318
Ratio of expenses to average net assets................... 0.20%(c) 0.20%(c)
Ratio of net investment income to average net assets...... 1.28%(c) 1.70%(c)
Ratio of expenses to average net assets *................. 0.47%(c) 0.77%(c)
Ratio of net investment income to average net assets *.... 1.01%(c) 1.13%(c)
Portfolio turnover (d).................................... 6.81% 18.49%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
20
<PAGE> 23
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
FUND
------------------------------
CLASS A
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.21 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.06 0.07
Net realized and unrealized gains (losses) from
investments............................................ 1.00 1.21
------- -------
Total from Investment Activities....................... 1.06 1.28
------- -------
Distributions
From net investment income................................ (0.06) (0.07)
From net realized gains................................... (0.35) 0.00
------- -------
Total Distributions.................................... (0.41) (0.07)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.86 $ 11.21
======= =======
Total Return (Excludes Sales Charge)........................ 9.49%(b) 12.84%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $17,581 $ 4,439
Ratio of expenses to average net assets................... 0.45%(c) 0.46%(c)
Ratio of net investment income to average net assets...... 1.03%(c) 1.82%(c)
Ratio of expenses to average net assets *................. 0.82%(c) 1.62%(c)
Ratio of net investment income to average net assets *.... 0.66%(c) 0.66%(c)
Portfolio turnover (d).................................... 6.81% 18.49%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
21
<PAGE> 24
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
FUND
------------------------------
CLASS B
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.34 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.02 0.04
Net realized and unrealized gains (losses) from
investments............................................ 1.00 1.34
------- -------
Total from Investment Activities....................... 1.02 1.38
------- -------
Distributions
From net investment income................................ (0.02) (0.04)
From net realized gains................................... (0.35) 0.00
------- -------
Total Distributions.................................... (0.37) (0.04)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.99 $ 11.34
======= =======
Total Return (Excludes Sales Charge)........................ 9.03%(b) 13.88% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $29,285 $ 7,651
Ratio of expenses to average net assets................... 1.20%(c) 1.20% (c)
Ratio of net investment income to average net assets...... 0.28%(c) 0.97% (c)
Ratio of expenses to average net assets *................. 1.47%(c) 2.18% (c)
Ratio of net investment income to average net assets *.... 0.01%(c) (0.01%)(c)
Portfolio turnover (d).................................... 6.81% 18.49%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
22
<PAGE> 25
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
FUND
------------
CLASS C
------------
SIX MONTHS
ENDED
DECEMBER 31,
1997(a)
------------
(UNAUDITED)
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.25
-------
Investment Activities
Net investment income..................................... 0.02
Net realized and unrealized gains (losses) from
investments............................................ 0.98
-------
Total from Investment Activities....................... 1.00
-------
Distributions
From net investment income................................ (0.02)
From net realized gains................................... (0.35)
-------
Total Distributions.................................... (0.37)
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.88
=======
Total Return (Excludes Sales Charge)........................ 8.99%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 3,992
Ratio of expenses to average net assets................... 1.20%(c)
Ratio of net investment income to average net assets...... 0.28%(c)
Ratio of expenses to average net assets *................. 1.47%(c)
Ratio of net investment income to average net assets *.... 0.01%(c)
Portfolio turnover (d).................................... 6.81%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
23
<PAGE> 26
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
& INCOME
FUND
------------------------------
FIDUCIARY
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.93 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.13 0.15
Net realized and unrealized gains (losses) from
investments............................................ 0.80 0.93
------- -------
Total from Investment Activities....................... 0.93 1.08
------- -------
Distributions
From net investment income................................ (0.13) (0.15)
From net realized gains................................... (0.28) 0.00
------- -------
Total Distributions.................................... (0.41) (0.15)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.45 $ 10.93
======= =======
Total Return................................................ 8.55%(b) 10.87%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $75,782 $43,660
Ratio of expenses to average net assets................... 0.20%(c) 0.20%(c)
Ratio of net investment income to average net assets...... 2.41%(c) 2.78%(c)
Ratio of expenses to average net assets *................. 0.41%(c) 0.66%(c)
Ratio of net investment income to average net assets *.... 2.20%(c) 2.32%(c)
Portfolio turnover (d).................................... 4.41% 18.07%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
24
<PAGE> 27
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
& INCOME
FUND
--------------------------------
CLASS A
--------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
-------------- ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.02 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.12 0.12
Net realized and unrealized gains (losses) from
investments............................................ 0.81 1.02
------- -------
Total from Investment Activities....................... 0.93 1.14
------- -------
Distributions
From net investment income................................ (0.12) (0.12)
From net realized gains................................... (0.28) 0.00
------- -------
Total Distributions.................................... (0.40) (0.12)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.55 $ 11.02
======= =======
Total Return (Excludes Sales Charge)........................ 8.45%(b) 11.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $15,719 $ 4,262
Ratio of expenses to average net assets................... 0.45%(c) 0.46%(c)
Ratio of net investment income to average net assets...... 2.16%(c) 2.67%(c)
Ratio of expenses to average net assets *................. 0.76%(c) 1.26%(c)
Ratio of net investment income to average net assets *.... 1.85%(c) 1.87%(c)
Portfolio turnover (d).................................... 4.41% 18.07%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
25
<PAGE> 28
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
& INCOME
FUND
------------------------------
CLASS B
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.00 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.08 0.09
Net realized and unrealized gains (losses) from
investments............................................ 0.81 1.00
------- -------
Total from Investment Activities....................... 0.89 1.09
------- -------
Distributions
From net investment income................................ (0.08) (0.09)
From net realized gains................................... (0.28) 0.00
------- -------
Total Distributions.................................... (0.36) (0.09)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.53 $ 11.00
======= =======
Total Return (Excludes Sales Charge)........................ 8.11%(b) 11.02%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $34,254 $ 8,896
Ratio of expenses to average net assets................... 1.20%(c) 1.21%(c)
Ratio of net investment income to average net assets...... 1.41%(c) 1.94%(c)
Ratio of expenses to average net assets *................. 1.41%(c) 1.89%(c)
Ratio of net investment income to average net assets *.... 1.20%(c) 1.26%(c)
Portfolio turnover (d).................................... 4.41% 18.07%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
26
<PAGE> 29
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
GROWTH
& INCOME
FUND
------------
CLASS C
------------
SIX MONTHS
ENDED
DECEMBER 31,
1997(a)
------------
(UNAUDITED)
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.93
-------
Investment Activities
Net investment income..................................... 0.08
Net realized and unrealized gains (losses) from
investments............................................ 0.78
-------
Total from Investment Activities....................... 0.86
-------
Distributions
From net investment income................................ (0.08)
From net realized gains................................... (0.28)
-------
Total Distributions.................................... (0.36)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.43
=======
Total Return (Excludes Sales Charge)........................ 7.98%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 2,498
Ratio of expenses to average net assets................... 1.20%(c)
Ratio of net investment income to average net assets...... 1.41%(c)
Ratio of expenses to average net assets *................. 1.41%(c)
Ratio of net investment income to average net assets *.... 1.20%(c)
Portfolio turnover (d).................................... 4.41%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
27
<PAGE> 30
- --------------------------------------------------------------------------------
The One Group Family Of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
CONSERVATIVE
GROWTH FUND
------------------------------
FIDUCIARY
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.33 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.23 0.26
Net realized and unrealized gains (losses) from
investments............................................ 0.35 0.33
------- -------
Total from Investment Activities....................... 0.58 0.59
------- -------
Distributions
From net investment income................................ (0.23) (0.26)
From net realized gains................................... (0.10) 0.00
------- -------
Total Distributions.................................... (0.33) (0.26)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.58 $ 10.33
======= =======
Total Return................................................ 5.69%(b) 6.00%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $22,852 $15,038
Ratio of expenses to average net assets................... 0.20%(c) 0.20%(c)
Ratio of net investment income to average net assets...... 4.64%(c) 4.92%(c)
Ratio of expenses to average net assets *................. 0.62%(c) 1.46%(c)
Ratio of net investment income to average net assets *.... 4.22%(c) 3.66%(c)
Portfolio turnover (d).................................... 4.00% 28.46%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
28
<PAGE> 31
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
CONSERVATIVE
GROWTH FUND
------------------------------
CLASS A
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.32 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.22 0.22
Net realized and unrealized gains (losses) from
investments............................................ 0.35 0.32
------- -------
Total from Investment Activities....................... 0.57 0.54
------- -------
Distributions
From net investment income................................ (0.22) (0.22)
From net realized gains................................... (0.10) 0.00
------- -------
Total Distributions.................................... (0.32) (0.22)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.57 $ 10.32
======= =======
Total Return (Excludes Sales Charge)........................ 5.57%(b) 5.46%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 3,334 $ 1,299
Ratio of expenses to average net assets................... 0.45%(c) 0.47%(c)
Ratio of net investment income to average net assets...... 4.39%(c) 4.76%(c)
Ratio of expenses to average net assets *................. 0.97%(c) 3.05%(c)
Ratio of net investment income to average net assets *.... 3.87%(c) 2.18%(c)
Portfolio turnover (d).................................... 4.00% 28.46%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
29
<PAGE> 32
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
CONSERVATIVE
GROWTH FUND
------------------------------
CLASS B
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.33 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.19 0.19
Net realized and unrealized gains (losses) from
investments............................................ 0.34 0.33
------- -------
Total from Investment Activities....................... 0.53 0.52
------- -------
Distributions
From net investment income................................ (0.19) (0.19)
From net realized gains................................... (0.10) 0.00
------- -------
Total Distributions.................................... (0.29) (0.19)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.57 $ 10.33
======= =======
Total Return (Excludes Sales Charge)........................ 5.13%(b) 5.30%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $13,791 $ 2,616
Ratio of expenses to average net assets................... 1.20%(c) 1.21%(c)
Ratio of net investment income to average net assets...... 3.64%(c) 4.06%(c)
Ratio of expenses to average net assets *................. 1.62%(c) 3.52%(c)
Ratio of net investment income to average net assets *.... 3.22%(c) 1.75%(c)
Portfolio turnover (d).................................... 4.00% 28.46%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
30
<PAGE> 33
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
CONSERVATIVE
GROWTH FUND
------------
CLASS C
------------
SIX MONTHS
ENDED
DECEMBER 31,
1997(a)
------------
(UNAUDITED)
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.33
-------
Investment Activities
Net investment income..................................... 0.19
Net realized and unrealized gains (losses) from
investments............................................ 0.32
-------
Total from Investment Activities....................... 0.51
-------
Distributions
From net investment income................................ (0.19)
From net realized gains................................... (0.10)
-------
Total Distributions.................................... (0.29)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.55
=======
Total Return (Excludes Sales Charge)........................ 5.01%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 2,283
Ratio of expenses to average net assets................... 1.20%(c)
Ratio of net investment income to average net assets...... 3.64%(c)
Ratio of expenses to average net assets *................. 1.62%(c)
Ratio of net investment income to average net assets *.... 3.22%(c)
Portfolio turnover (d).................................... 4.00%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
31
<PAGE> 34
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
BALANCED
FUND
--------------------------------------
FIDUCIARY
--------------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ --------------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.63 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.19 0.21
Net realized and unrealized gains from investments........ 0.59 0.63
------- -------
Total from Investment Activities....................... 0.78 0.84
------- -------
Distributions
From net investment income................................ (0.19) (0.21)
From net realized gains................................... (0.22) 0.00
------- -------
Total Distributions.................................... (0.41) (0.21)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................ $ 11.00 $ 10.63
======= =======
Total Return................................................ 7.36%(b) 8.48%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $85,021 $72,155
Ratio of expenses to average net assets................... 0.20%(c) 0.20%(c)
Ratio of net investment income to average net assets...... 3.42%(c) 3.84%(c)
Ratio of expenses to average net assets *................. 0.34%(c) 0.56%(c)
Ratio of net investment income to average net assets *.... 3.28%(c) 3.48%(c)
Portfolio turnover (d).................................... 12.87% 12.20%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
32
<PAGE> 35
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
BALANCED
FUND
------------------------------
CLASS A
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.66 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.17 0.17
Net realized and unrealized gains from investments........ 0.58 0.66
------- -------
Total from Investment Activities....................... 0.75 0.83
------- -------
Distributions
From net investment income................................ (0.17) (0.17)
From net realized gains................................... (0.22) 0.00
------- -------
Total Distributions.................................... (0.39) (0.17)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.02 $ 10.66
======= =======
Total Return (Excludes Sales Charge)........................ 7.13%(b) 8.41%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $10,111 $ 2,176
Ratio of expenses to average net assets................... 0.45%(c) 0.47%(c)
Ratio of net investment income to average net assets...... 3.17%(c) 3.78%(c)
Ratio of expenses to average net assets *................. 0.69%(c) 1.12%(c)
Ratio of net investment income to average net assets *.... 2.93%(c) 3.13%(c)
Portfolio turnover (d).................................... 12.87% 12.20%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
33
<PAGE> 36
- --------------------------------------------------------------------------------
The One Group Family Of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
BALANCED
FUND
------------------------------
CLASS B
------------------------------
SIX MONTHS DECEMBER 10,
ENDED 1996 THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.65 $ 10.00
------- -------
Investment Activities
Net investment income..................................... 0.14 0.16
Net realized and unrealized gains from investments........ 0.59 0.65
------- -------
Total from Investment Activities....................... 0.73 0.81
------- -------
Distributions
From net investment income................................ (0.14) (0.16)
From net realized gains................................... (0.22) 0.00
------- -------
Total Distributions.................................... (0.36) (0.16)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.02 $ 10.65
======= =======
Total Return (Excludes Sales Charge)........................ 6.87%(b) 8.22%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $24,509 $ 5,672
Ratio of expenses to average net assets................... 1.20%(c) 1.22%(c)
Ratio of net investment income to average net assets...... 2.42%(c) 2.93%(c)
Ratio of expenses to average net assets *................. 1.34%(c) 1.73%(c)
Ratio of net investment income to average net assets *.... 2.28%(c) 2.42%(c)
Portfolio turnover (d).................................... 12.87% 12.20%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
34
<PAGE> 37
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR
BALANCED
FUND
------------
CLASS C
------------
SIX MONTHS
ENDED
DECEMBER 31,
1997(a)
------------
(UNAUDITED)
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.63
-------
Investment Activities
Net investment income..................................... 0.14
Net realized and unrealized gains (losses) from
investments............................................ 0.57
-------
Total from Investment Activities....................... 0.71
-------
Distributions
From net investment income................................ (0.14)
From net realized gains................................... (0.22)
-------
Total Distributions.................................... (0.36)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.98
=======
Total Return (Excludes Sales Charge)........................ 6.76%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 2,600
Ratio of expenses to average net assets................... 1.20%(c)
Ratio of net investment income to average net assets...... 2.42%(c)
Ratio of expenses to average net assets *................. 1.34%(c)
Ratio of net investment income to average net assets *.... 2.28%(c)
Portfolio turnover (d).................................... 12.87%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
35
<PAGE> 38
(This page has been left blank intentionally.)
<PAGE> 39
Important Customer Information.
Please Read:
Shares of The One Group:
* are not deposits or obligations
of, or guaranteed by, BANC ONE
CORPORATION or its affiliates
* are not insured or guaranteed by the
FDIC or by any other governmental
agency or government-sponsored
agency of the federal government
or any state
* are subject to investment risks,
including possible loss of the
principal amount invested.
Banc One Investment Advisors
Corporation, a registered investment
advisor and an indirect subsidiary of
BANC ONE CORPORATION, serves
as an investment advisor to The One
Group, for which it receives advisory
fees. The One Group is distributed by
The One Group Services Company,
3435 Stelzer Road, Columbus,
Ohio 43219, which is not affiliated
with BANC ONE CORPORATION and
is not a bank. Contact us at our web
site address: www.onegroup.com or
e-mail us at [email protected].
For more complete information on
any of The One Group Funds, including
management fees and expenses,
you may obtain a prospectus from
The One Group Services Company.
Read the prospectus carefully
before investing.
BANC ONE
INVESTMENT [LOGO]
ADVISORS
CORPORATION
TOG-F-036-AN(8/97)
