<PAGE> 1
GROWTH
FUNDS
ANNUAL REPORT
For the year ended June 30, 1998
Asset Allocation Fund
Income Equity Fund
Equity Income Fund
Value Growth Fund
Large Company Value Fund
Disciplined Value Fund
Large Company Growth Fund
Growth Opportunities Fund
Small Capitalization Fund
International Equity Index Fund
THE ONE GROUP(R)
- ----------------
FAMILY OF MUTUAL FUNDS
<PAGE> 2
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 [FDIC Logo
with slash thru it]
* are subject to investment risks, including possible
loss of the principal amount invested.
<PAGE> 3
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Table of Contents
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
Portfolio Performance Review................................................ 2
Schedules of Portfolio Investments........................................... 28
Statements of Assets and Liabilities......................................... 88
Statements of Operations..................................................... 92
Statements of Changes in Net Assets.......................................... 94
Statements of Cash Flows..................................................... 98
Notes to Financial Statements................................................ 99
Financial Highlights.........................................................113
Report of Independent Accountants............................................150
1
<PAGE> 4
The One Group Asset Allocation Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
For the year ended June 30, 1998, The One Group Asset Allocation Fund Fiduciary
share class posted a total return of 22.12%. (For information on other share
classes and performance comparisons to indexes, please see page 4.)
WHAT WERE YOUR OVERALL STRATEGIES AND TACTICS?
In November 1997, we increased the Fund's equity weighting by 2%, bringing the
asset allocation to 57% equities and 43% fixed income. Our research indicated
that while stock valuations remained fairly high, corporate profitability was
strong, which prompted the slight shift toward equities. Nonetheless, the
allocation remains fairly conservative compared to our benchmark of 60% equities
and 40% fixed income.
The 1997 tax law created three categories of capital gains: short-term, for
securities held less than a year and taxed as regular income; mid-term, for
securities held from one year to 18 months and taxed at 28%; and long-term for
securities held for at least 18 months and taxed at 20%. To limit the number of
short-term gains, we held securities longer, reducing the Fund's turnover rate
from an average of 81% to 46% during the year.
HOW DID EVENTS PLAY OUT IN THE FUND'S EQUITY PORTFOLIO?
Overall, corporate earnings exceeded expectations throughout the year,
contributing to the stock market's strong performance. At the same time, a
favorable interest rate environment helped support additional gains in the
market.
The equity philosophy of the Fund is research driven. Our bottom-up stock
selection approach led to attractive results in the Fund's equity portfolio.
Instead of trying to time the market or focus on certain areas of the market, we
rely on fundamental research to select individual stocks from all market
sectors. As a result, the Fund's stock portfolio represents the "best ideas" of
the equity research team. Equity returns were driven by stock selection, not
market timing or sector rotation.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
During the fiscal year, the Fund's equity portfolio benefited from particularly
good stock selection in the following sectors: technology (Dell Computer, up
216%); retail (Wal-Mart, up 80%); health care (Warner-Lambert, up 68%); and
telephone utilities (LCI International, up 65%).
HOW DID THE PORTFOLIO'S TOP 10 HOLDINGS CHANGE?*
Six of fiscal 1997's top 10 holdings remained among the top 10 during the past
year: Microsoft, 1.9% (technology), General Electric, 1.6% (capital goods),
Exxon, 1.2% (energy) Wal-Mart, 1.0%, Bristol-Myers Squibb, 1.0% (health care)
and Intel, 1.0% (technology). The remaining top 10 stock holdings included
Nations-Bank, 1.0% (financial services), Cisco Systems, 1.0% (technology), Dell
Computer, 1.0% and Travelers Group, 0.8% (financial services).
HOW DID EVENTS PLAY OUT IN THE FUND'S FIXED INCOME PORTFOLIO?
The largest contributing factor to the Fund's fixed income portfolio was the
general decline in interest rates, which led to a corresponding increase in bond
prices. Events in Asia contributed to a weakening global economy, which in turn
contributed to a general decrease in U.S. bond market yields and an increase in
U.S. bond prices.
We maintained diversity among government, agency mortgage-backed, asset-backed
and corporate securities. With only a moderate level of volatility in the bond
market, the performance of certain mortgage-backed securities was strong. These
bonds offered yield advantages over other securities, with little offset due to
market volatility. We also purchased select corporate securities that enhanced
the portfolio's yield.
The portfolio's duration, at 4.3 years, remained slightly longer than our
neutral stance of 4.1 years. (Duration is a measure of a fund's price
sensitivity to interest rate changes. A longer duration indicates greater
sensitivity; a shorter duration indicates less.) Slightly extending the duration
enabled the portfolio to experience more price appreciation resulting from the
declining interest rate environment.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We plan to maintain the Fund's current asset allocation mix and investment
strategies, as we expect the U.S. economy to maintain its steady, albeit slower,
growth pattern over the next year. Of course, we will continue to monitor
valuation levels in the financial markets and
2
<PAGE> 5
The One Group Asset Allocation Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
watch for signs of inflationary pressures. Any changes may warrant a shift in
our strategies.
With slower anticipated growth, inflation is likely to remain tame and interest
rates stable. Such an environment would not threaten the Fund's investments in
corporate bonds, which would become more vulnerable in a recession, or mortgage
securities, which would suffer if interest rates were to change dramatically. In
fact, we expect mortgage-backed, asset-backed and corporate securities to offer
return advantages over Treasuries in the coming months.
In the stock market, we expect corporate earnings to come under greater pressure
in the months ahead. As such, we look for more "normal" performance from the
stock market. We plan to maintain our sector neutrality, which gives us the
opportunity to take advantage of opportunities in various industries and
companies.
/s/ Daniel J. Kapusta
- ---------------------------
Daniel J. Kapusta
Fund Manager
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
/s/ Scott Grimshaw
- ---------------------------
Scott Grimshaw
Fund Manager
/s/ Gary J. Madich, CFA
- ---------------------------
Gary J. Madich, CFA
Senior Managing Director of Fixed Income Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
more information about your Fund.
3
<PAGE> 6
The One Group Asset Allocation Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (4/5/93)
<S> <C> <C> <C>
Fiduciary 22.12% 14.11% 13.71%
</TABLE>
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 S&P/Lipper Mix Fiduciary
<S> <C> <C> <C>
4/93 $10,000 $10,000 $10,000
6/93 10,298 10,241 10,129
6/94 10,442 10,260 10,027
6/95 13,165 12,218 11,636
6/96 16,588 14,245 13,356
6/97 22,343 17,395 16,048
6/98 $29,082 $21,124 $19,596
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (4/2/93)
<S> <C> <C> <C>
Class A 21.71% 13.82% 13.40%
Class A* 16.25% 12.78% 12.41%
</TABLE>
* Reflects 4.50% Sales Charge
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 S&P/Lipper Mix Class A* Class A
<S> <C> <C> <C> <C>
4/93 $10,000 $10,000 $ 9,550 $10,000
6/93 10,298 10,241 9,668 10,124
6/94 10,442 10,260 9,553 10,003
6/95 13,165 12,218 11,057 11,580
6/96 16,588 14,245 12,657 13,257
6/97 22,343 17,395 15,166 15,888
6/98 $29,082 $21,124 $18,468 $19,336
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C>
Class B 20.95% 13.63%
Class B** 16.95% 13.34%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 S&P/Lipper Mix Class B** Class B
<S> <C> <C> <C> <C>
1/94 $10,000 $10,000 $10,000 $10,000
6/94 9,344 9,410 9,402 9,402
6/95 11,779 11,206 10,803 10,803
6/96 14,842 13,065 12,292 12,292
6/97 19,992 15,995 14,616 14,616
6/98 $26,022 $19,424 $17,476 $17,676
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Asset Allocation Fund is measured against the S&P 500
Index, an unmanaged index generally representative of the performance of large
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B Shares.
The S&P/Lipper Mix for all the classes is a blended index consisting of 60% of
the average monthly returns of the S&P 1500 Index from January 1, 1995 (index
inception date) until present and of the S&P 500 Index from April 1993 through
December 1994. The final 40% consists of the Lipper Intermediate US Government
Bond Funds Index.
4
<PAGE> 7
The One Group Income Equity Fund
Portfolio Performance Review
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THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The One Group Income Equity Fund Fiduciary share class posted a total return of
23.18% for the year ended June 30, 1998. (For information on other share classes
and performance comparisons to the Fund's benchmark index, please see page 7.)
With inflation, unemployment and federal fiscal balances at their best levels in
a generation, the equity market offered strong double-digit returns for the
fourth consecutive year.
TO WHAT DO YOU ATTRIBUTE SUCH STRONG PERFORMANCE?
The Fund continued to benefit from its concentration in the types of companies
investors have preferred-large-capitalization, high-quality, consistent-growth
companies. At the same time, the Fund was rewarded for not owning companies with
severe earnings problems, such as those with significant exposure to Asia.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our portfolio strategies during the year focused on maintaining strong
performance measures while positioning the portfolio for a more challenging
market environment we think may be in store. As such, we sold and took profits
on certain issues that have been the best performers over the last several
years. We also eliminated some disappointing holdings and established new
positions in securities that we think are likely to be future market leaders.
We also have been improving the Fund's current income by reducing
lower-dividend-yielding issues and building positions in higher-yielding
securities. We also cut in half the Fund's position in convertible securities
and used the proceeds to invest in real estate investment trusts (REITs). In
addition to enhancing the Fund's diversification, we believe the REITs offer
good value and add important defensive characteristics to the Fund due to their
attractive yields.
On average, the Fund held 89% of its assets in common stocks, 5% in convertible
securities, 5% in REITs and 1% in cash during the year.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
The Fund enjoyed strong fiscal-year performance from several sectors in which
certain companies consistently achieved superior earnings growth or benefited
from major restructuring:
- - Health care (Schering-Plough, Pfizer and Warner-Lambert were up 65% or more)
- - Finance (American Express, Chase Manhattan, U.S. Bancorp, Lincoln National,
FNMA and National City were up 35% or more)
- - Telephone utilities (AT&T, BellSouth and Sprint were up 30% or more)
- - Selected industrials (Ford was up 55%).
WERE THERE ANY DISAPPOINTING HOLDINGS?*
Disappointing performers were concentrated in more volatile sectors, including
transportation (Union Pacific declined 37% for the fiscal year), energy and
mining (Amoco was off 4%, Cyprus-Amax down 46%) and manufacturing (Corning,
Boeing and Deere declined in price). Our policy in handling such "problem"
issues is to reduce the position size when earnings expectations are not being
met and sell out completely if a turnaround is unlikely, as we did with Union
Pacific and Cyprus-Amax. To help avoid problem situations, we concentrate on
favorable growth areas and look to fundamental research conducted by our
in-house analysts.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE?*
Two new issues moved into the top 10 holdings-American Home Products, 2.1%
(health care) and Schering-Plough, 1.9% replaced Mobil (energy) and Philip
Morris (consumer non-durables). The remaining top 10 holdings were unchanged
from last year and included General Electric, 3.4% (capital goods), American
Express, 2.5%, Bristol-Myers Squibb, 2.4% (health care), Exxon, 2.2% (energy),
BankAmerica, 2.1% (financial services), Warner-Lambert, 2.1%, Coca-Cola, 2.1%
(consumer non-durable), and Royal Dutch Petroleum, 2.0% (energy).
5
<PAGE> 8
The One Group Income Equity Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
WHAT IS YOUR OUTLOOK FOR THE FUND?
We are pleased with the current composition of the portfolio and the fundamental
progress of the companies the Fund owns. Nevertheless, the financial markets
have been highly volatile. Many of the uncertainties confronting investors
today-Asian problems, nuclear proliferation, historically high stock
valuations-have no quick-fix solutions. Furthermore, corporate earnings gains
aren't as good as they have been in recent years. This would suggest that we
should lower our return expectations and become more focused and selective.
Perhaps the best plan is to remain flexible and vigilant in order to take
advantage of opportunities when they arise. If a more challenging market
develops, we believe the Fund is well positioned, given its defensive
characteristics, higher-than-average income, holdings in predictable growth
companies and exposure to real estate.
/s/ R. Lynn Yturri
- ---------------------------
R. Lynn Yturri
Fund Manager
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Fixed Income Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
6
<PAGE> 9
The One Group Income Equity Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year 10 Year (7/2/87)
<S> <C> <C> <C> <C>
Fiduciary 23.18% 20.21% 16.29% 13.99%
</TABLE>
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 Fiduciary
<S> <C> <C>
6/88 $10,000 $10,000
6/89 12,055 11,858
6/90 14,044 13,375
6/91 15,082 14,376
6/92 17,104 16,153
6/93 19,436 18,020
6/94 19,709 18,609
6/95 24,847 22,526
6/96 31,307 28,053
6/97 42,170 36,720
6/98 $54,889 $45,230
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
<S> <C> <C> <C>
Class A 22.91% 19.89% 17.43%
Class A* 17.39% 18.79% 16.59%
</TABLE>
* Reflects 4.50% Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 Class A* Class A
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 9,992 9,625 10,079
6/93 11,354 10,721 11,226
6/94 11,514 11,037 11,557
6/95 14,515 13,301 13,961
6/96 18,289 16,569 17,353
6/97 24,635 21,602 22,625
6/98 $32,065 $26,558 $27,806
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C>
Class B 21.97% 20.06%
Class B** 17.97% 19.82%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 Class B** Class B
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,344 9,663 9,663
6/95 11,779 11,587 11,587
6/96 14,842 14,300 14,300
6/97 19,992 18,515 18,515
6/98 $26,022 $22,387 $22,587
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C>
Class C 16.57%
Class C** 15.57%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 500 Class C** Class C
<S> <C> <C> <C>
11/97 $10,000 $10,000 $10,000
6/98 $11,973 $11,556 $11,656
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Income Equity Fund is measured against the S&P 500 Index,
an unmanaged index generally representative of the performance of large
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B and Class C Shares.
7
<PAGE> 10
The One Group Equity Index Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
For the year ended June 30, 1998, The One Group Equity Index Fund Fiduciary
share class posted a total return of 29.73%. (For information on other share
classes and a performance comparison to the index, please see page 9.)
As it is designed to do, the Fund offered a return that nearly matched that of
the S&P 500 Index, the unmanaged group of stocks the Fund seeks to track with
little or no excess risk. The S&P 500 Index returned 30.16% for the year. The
slight difference in returns between the Fund and the Index is due to fees and
transaction costs charged to the Fund but not to the Index.
WHAT CONTRIBUTED TO SUCH A STRONG RETURN?
A strong economy, low inflation, declining interest rates and favorable
corporate earnings growth led to attractive stock market returns for yet another
year. Once again, large-capitalization growth companies, the type represented in
the S&P 500 Index, outperformed other types of U.S. stocks.
WHICH MARKET SECTORS OFFERED NOTABLE PERFORMANCE?
The Fund offered exposure to 15 market sectors. Among those sectors, retail and
telephone utilities offered the strongest performance. The retail sector
benefited from lower costs on Asian imports, while telephone utilities advanced
due to acquisition activity.
The weakest-performing sectors included technology, energy and industrial
commodities. The technology sector suffered somewhat from the economic and
market crisis that swept through Asia, while energy stocks declined due to lower
oil prices. In the industrial commodities sector (chemical, paper and metal
companies), stocks suffered from the sector's lack of pricing power.
WHAT WERE SOME OF THE STRONGEST AND WEAKEST STOCKS?*
The Fund enjoyed outstanding performance from a handful of stocks, including
technology provider Unisys, up 270% for the fiscal year due to strong earnings;
computer manufacturer Dell Computer, up 216% on strong earnings; cable
television company Tele-Communications, up 159% and acquired by AT&T; financial
service provider Providian Financial, up 145% on strong earnings; and auto
manufacturer Ford Motor, up 55% due to strong earnings.
Weak earnings contributed to poor performance from certain holdings, including
diversified mining company Freeport-McMoran Copper and Gold, down 51% for the
fiscal year; technology company Advanced Micro Devices, down 52%; and technology
provider Cabletron Systems, down 53%.
WHAT WERE THE FUND'S TOP 10 HOLDINGS?*
Most of the Fund's top 10 holdings retained their spots during the past year.
The only changes to the group were the addition of Pfizer, 1.5% (health care
sector) and Wal-Mart, 1.5% (retail), which replaced Philip Morris (consumer
non-durables) and IBM (technology). The remaining top 10 included General
Electric, 3.2% (capital goods), Microsoft, 2.9% (technology), Coca-Cola, 2.3%
(consumer non-durables), Exxon, 1.9% (energy), Merck, 1.7% (health care), Intel,
1.4% (technology), Proctor & Gamble, 1.3% (consumer non-durables) and Royal
Dutch Petroleum, 1.3% (energy).
WHAT IS YOUR OUTLOOK FOR THE STOCK MARKET?
The environment for stocks should remain favorable over the coming year. We
expect economic growth to continue, but at a slower pace. We also expect
interest rates and inflation to remain low. Corporate earnings and stock prices
should continue to grow, but earnings are likely to come under increasing
pressure. Nevertheless, it's important to remember that returns of the last few
years have been unusually strong, and they probably are not sustainable. We
expect to see stock returns revert to more "normal" levels.
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings subject to change.
Please refer to the prospectus and the accompanying financial statements for
more information about your Fund.
The S&P 500 Index is an unmanaged group of stocks generally representative of
the performance of large U.S.-based companies. Investors cannot purchase the
index directly, but they can invest in the underlying securities.
8
<PAGE> 11
The One Group Equity Index Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (7/2/91)
<S> <C> <C> <C>
Fiduciary 29.73% 22.58% 19.64%
</TABLE>
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period Dollars
(Fiscal Year Covered) S&P 500 Fiduciary
<S> <C> <C>
7/91 $10,000 $10,000
6/92 10,836 11,211
6/93 12,313 12,673
6/94 12,486 12,753
6/95 15,741 16,043
6/96 19,834 20,129
6/97 26,717 27,033
6/98 $34,775 $35,070
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
<S> <C> <C> <C>
Class A 29.33% 22.29% 19.44%
Class A* 23.49% 21.17% 18.58%
</TABLE>
* Reflects 4.50% Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period Dollars
(Fiscal Year Covered) S&P 500 Class A* Class A
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 9,992 9,595 9,992
6/93 11,354 10,818 11,354
6/94 11,514 10,879 11,514
6/95 14,515 13,644 14,515
6/96 18,289 17,075 18,289
6/97 24,635 22,869 24,635
6/98 $32,066 $29,574 $30,976
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C>
Class B 28.47% 22.74%
Class B** 24.47% 22.51%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period Dollars
(Fiscal Year Covered) S&P 500 Class B** Class B
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,344 9,443 9,443
6/95 11,779 11,765 11,765
6/96 14,842 14,595 14,595
6/97 19,992 19,400 19,400
6/98 $26,022 $24,721 $24,921
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C>
Class C 21.07%
Class C** 20.07%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period Dollars
(Fiscal Year Covered) S&P 500 Class C** Class C
<S> <C> <C> <C>
11/97 $10,000 $10,000 $10,000
6/98 $11,973 $12,006 412,106
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Equity Index Fund is measured against the S&P 500 Index,
an unmanaged index generally representative of the performance of large
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B and Class C Shares.
9
<PAGE> 12
The One Group Value Growth Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The One Group Value Growth Fund Fiduciary share class posted a total return of
32.26% for the year ended June 30, 1998. (For information on other share classes
and performance comparisons to indexes, please see page 12.)
TO WHAT DO YOU ATTRIBUTE THE FUND'S SOLID RETURN?
Domestic stocks of all styles enjoyed another strong year, as low inflation,
declining interest rates and better-than-expected corporate earnings contributed
to the gains.
Rather than emphasizing particular market sectors or trying to time the market's
next moves, we research, evaluate and select stocks on an individual basis to
build a diversified portfolio. We don't consciously overweight a single sector
or a single style of stock. Instead, we invest in stocks from the four major
equity styles -- large capitalization growth, large capitalization value, medium
capitalization growth and medium capitalization value -- and look for stocks
that we believe offer the best return potential relative to their level of risk.
Over the past year, for example, we saw some vicious swings among sectors,
creating a momentum market that saw investors attempting to pick the "right"
sector at the right time. But, our emphasis on individual stock selection paid
off, as that process gave the Fund exposure to many different industries and
contributed to the Fund's strong return.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
The Fund owned more stocks than usual and was more diverse than usual in an
active attempt to be less exposed to any single momentum play. Momentum markets
tend to last longer than investors expect, and stocks that are not participating
tend to lose their value quickly.
Events in Asia played an interesting role in the Fund's performance. After the
domino effect, which started in Thailand, hit U.S. shores in October 1997, we
avoided the stocks of companies that we thought would be most negatively
affected by the malaise -- namely, commodity cyclical companies. By steering
away from that group, the Fund became more growth-oriented than usual.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
Industry positions such as the pharmaceutical area of health care
(Schering-Plough, up 91% for the fiscal year, and Bristol-Myers Squibb, up 42%);
the software and PC areas of technology (Microsoft, up 71%; BMC Software, up
88%; Dell Computer, up 216%); and the long distance segment of
telecommunications (Century Telephone, up 104%; Sprint, up 35%) added to the
Fund's strong performance.
The Fund also benefited from strong performance from Cisco Systems (technology),
up 106% for the year; Equitable Co. (financial services), up 125%; Morgan
Stanley Dean Witter (financial services), up 112%; Lucent Technologies
(technology), up 131%; and Energy East (utility), up 99%.
At the same time, a few Fund holdings realized poor performance, namely Callaway
Golf (consumer services), down 45% for the year; Toys R Us (retail), down 33%;
BetzDearborn (raw materials), down 37%; Columbia/HCA Healthcare (health care),
down 26%; and Phycor (health care), down 52%.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE?*
More than half of the Fund's top 10 holdings were among the leading holdings one
year ago: Microsoft, 3.3% (technology), General Electric, 2.9% (capital goods),
Exxon, 2.1% (energy), Wal-Mart, 1.8% (retail), Bristol Myers, 1.8% (health care)
and Intel, 1.7% (technology). The remaining members of the top 10 on June 30,
1998, included NationsBank, 1.8% (financial services), Cisco Systems, 1.8%, Dell
Computer, 1.7% and Coca-Cola, 1.5% (consumer non-durables).
10
<PAGE> 13
The One Group Value Growth Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
WHAT IS YOUR OUTLOOK FOR THE FUND?
We anticipate corporate earnings to revert to more normal levels, and we believe
volatility will continue. We plan to maintain the Fund's style diversity in
similar proportion as last year to address this market.
/s/ Michael D. Weiner
- ---------------------
Michael D. Weiner
Fund Manager
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
11
<PAGE> 14
The One Group Value Growth Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (12/29/89)
<S> <C> <C> <C>
Fiduciary 32.26% 19.63% 17.91%
</TABLE>
<TABLE>
<CAPTION>
Measurement Period VALUE OF $10,000 INVESTMENT
(Fiscal Year Covered) S&P 1500 Fiduciary
<S> <C> <C>
12/89 $10,000 $10,000
6/90 10,309 10,657
6/91 11,072 11,631
6/92 12,557 13,847
6/93 14,268 16,554
6/94 14,469 16,496
6/95 18,241 19,198
6/96 22,959 23,242
6/97 30,524 30,673
6/98 $39,510 $40,584
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (12/29/89)
<S> <C> <C> <C>
Class A 31.96% 19.48% 17.82%
Class A* 26.04% 18.38% 17.19%
</TABLE>
* Reflects 4.50% Sales Charge.
<TABLE>
<CAPTION>
Measurement Period VALUE OF $10,000 INVESTMENT
(Fiscal Year Covered) S&P 1500 Class A* Class A
<S> <C> <C> <C>
12/89 $10,000 $ 9,550 $10,000
6/90 10,309 10,178 10,657
6/91 11,072 11,107 11,631
6/92 12,557 13,224 13,847
6/93 14,268 15,809 16,554
6/94 14,469 15,754 16,496
6/95 18,241 18,334 19,198
6/96 22,959 22,178 23,225
6/97 30,524 29,171 30,548
6/98 $39,510 $38,504 $40,326
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (9/9/94)
<S> <C> <C> <C>
Class B 30.89% 23.28%
Class B** 26.89% 22.84%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
<TABLE>
<CAPTION>
Measurement Period VALUE OF $10,000 INVESTMENT
(Fiscal Year Covered) S&P 1500 Class B** Class B
<S> <C> <C> <C>
9/94 $10,000 $10,000 $10,000
6/95 12,019 10,806 10,806
6/96 15,129 12,981 12,981
6/97 20,113 16,942 16,942
6/98 $26,034 $21,873 $22,173
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C> <C>
Class C 20.87%
Class C** 19.87%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
<TABLE>
<CAPTION>
Measurement Period VALUE OF $10,000 INVESTMENT
(Fiscal Year Covered) S&P 1500 Class C** Class C
<S> <C> <C> <C>
11/97 $10,000 $10,000 $10,000
6/98 $11,858 $11,987 $12,087
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The above-quoted performance data includes the performance of the Paragon Value
Equity Income Fund for the period prior to the commencement of operations of The
One Group Value Growth Fund on March 26, 1996. Performance for the Fiduciary
Shares is based on Class A Share performance adjusted to reflect the absence of
sales charges.
The performance of the Value Growth Fund is measured against the S&P 1500 Index,
an unmanaged index generally representative of the performance of large and
small companies in the US stock market. Investors are unable to purchase the
index directly, although they can invest in the underlying securities. The
performance of the index does not reflect the deduction of expenses associated
with a mutual fund, such as investment management. By contrast, the performance
of the fund reflects the deduction of these value-added services as well as the
deduction of sales charges on Class A Shares and applicable contingent deferred
sales charges on Class B and Class C Shares.
The S&P 1500 Index for all classes consists of the average monthly returns of
the S&P 500 Index from December 1989 through December 1994. Thereafter, the data
are from the S&P 1500 Index which corresponds with the initiation of the S&P
1500 Index on January 1, 1995.
12
<PAGE> 15
The One Group Large Company Value Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
For the year ended June 30, 1998, The One Group Large Company Value Fund
Fiduciary share class posted a total return of 21.46%. (For information on other
share classes and a performance comparison to the index, please see page 15.)
TO WHAT DO YOU ATTRIBUTE THE FUND'S SOLID RETURN?
A positive economic environment led to strong corporate earnings growth, which
benefited stocks in the Fund. Likewise, low inflation and a favorable interest
rate environment boosted stock values.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our strategy involves implementing traditional value-investing techniques,
including focusing on stocks with below-average price-to-earnings and
price-to-book ratios. We employ this approach within the context of our basic
research discipline -- investing in attractively priced stocks with improving
fundamentals. Our goal is to realize price appreciation within a reasonable time
horizon.
We slightly modified the Fund's sector weightings during the year, increasing
exposure to electric utilities so that the sector is now a bit overweighted. We
believe the industry is well into its deregulation cycle, and we expect returns
to become even more compelling. This should result in further buying interest
going forward. We also made some minor changes in the technology sector, where
computer giant IBM is now the sector's largest holding.
DID EVENTS OVERSEAS INFLUENCE FUND RETURNS?
While the companies in which the Fund invests do not have tremendous exposure to
Europe, the stronger economies in that region did have an overall positive
impact on the Fund. On the other hand, weak Asian demand hurt companies with
significant Asian sales, especially in the capital goods sector. Fortunately,
the Fund was only slightly affected, as just 5% of its holdings had exposure to
Asia.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
The Fund was invested primarily in energy, banking, financial and telephone
stocks during the year. The banking and financial stocks were the best
performers due to continued consolidation in their industries. In fact, the Fund
enjoyed fiscal-year gains of at least 20% from the following financial services
companies: Travelers Group, Morgan Stanley Dean Witter, Lincoln National,
Hartford Financial Services Group and Fannie Mae.
Acquisition targets also proved to be among the best performing Fund holdings.
Auto maker Chrysler saw its stock price advance 71% over the year, primarily due
to its merger with German car maker Daimler Benz. In the telephone industry, MCI
Communications' pending acquisition by WorldCom pushed shares of MCI 52% higher
for the year. And, in the raw materials sector, Alcoa's acquisition of Alumax
helped shares of Alumax advance 22%.
On the other hand, energy stocks lagged as weak oil prices hurt earnings.
Because of this, we decreased the Fund's exposure to the major oil companies and
increased exposure to the natural gas pipeline and refining companies. The
refining companies are expected to benefit from lower oil prices.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE?*
More than half of the Fund's top 10 holdings remained unchanged during the year.
Those that held their spots from the previous year included Exxon, 4.3%
(energy), IBM, 4.2%, NationsBank, 2.8% (financial services), Travelers Group,
2.8%, Royal Dutch Petroleum, 2.7% (energy) and BankAmerica, 2.1% (financial
services). New to the group were Chrysler, 2.1%, Allstate, 1.9% (financial
services), Sears Roebuck & Co., 1.9% (retail) and Citicorp, 1.8% (financial
services).
13
<PAGE> 16
The One Group Large Company Value Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook for the economy suggests a favorable environment for stocks over the
coming year. We expect modest, but slower, economic growth with interest rates
and inflation remaining under control. As such, we expect corporate earnings and
stock prices to continue to grow. But, we expect to see stock returns revert to
more "normal" levels, compared to the unusually high results of the past few
years.
/s/ Edmund M. Cowart
- --------------------
Edmund M. Cowart
Managing Director, Value Growth Team
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
more information about your Fund.
14
<PAGE> 17
The One Group Large Company Value Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (3/1/91)
<S> <C> <C> <C>
Fiduciary 21.46% 16.88% 14.68%
<CAPTION>
<S> <C>
Fiduciary
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Value Fiduciary
<S> <C> <C>
3/91 $10,000 $10,000
6/91 10,035 10,148
6/92 11,405 11,721
6/93 13,514 12,511
6/94 13,932 12,709
6/95 16,903 15,685
6/96 21,094 17,678
6/97 27,610 22,470
6/98 $34,546 $27,292
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
<S> <C> <C> <C>
Class A 21.14% 16.66% 14.00%
Class A* 15.69% 15.59% 13.17%
<CAPTION>
<S> <C>
Class A
Class A*
</TABLE>
* Reflects 4.50% Sales Charge
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Value Class A* Class A
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 10,267 9,539 9,988
6/93 12,165 10,173 10,652
6/94 12,542 10,370 10,862
6/95 15,217 12,716 13,321
6/96 18,990 14,292 14,973
6/97 24,856 18,137 19,000
6/98 $31,100 $21,976 $23,018
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C> <C>
Class B 20.18% 16.80%
Class B** 16.18% 16.54%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Value Class B** Class B
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,643 9,652 9,652
6/95 11,317 11,802 11,802
6/96 14,123 13,213 13,213
6/97 18,485 16,630 16,630
6/98 $23,128 $19,783 $19,983
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Large Company Value Fund is measured against the
S&P/BARRA 500 Value Index, an unmanaged index representing the performance of
the lowest price to book securities in the S&P 500. Investors are unable to
purchase the index directly, although they can invest in the underlying
securities. The performance of the index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management. By
contrast, the performance of the fund reflects the deduction of these
value-added services as well as the deduction of sales charges on Class A Shares
and applicable contingent deferred sales charges on Class B Shares.
15
<PAGE> 18
The One Group Disciplined Value Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The One Group Disciplined Value Fund Fiduciary share class posted a total return
of 28.27% for the year ended June 30, 1998. (For information on other share
classes and performance comparisons to the index, please see page 18.)
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Interest rates ended the year lower, but experienced volatility throughout the
12-month period. To avoid some of the stock price volatility associated with
interest rate swings, we maintained a diversified portfolio with exposure to a
variety of economic sectors. Within this framework, we emphasized in-depth
analysis and individual stock selection, and we continued to rebalance the
portfolio in order to improve structure and upgrade holdings as market
conditions changed.
Because of the Fund's value orientation, we emphasized the sectors that offered
the greatest perceived value. As a result, almost half of the Fund's assets were
in the electric utility, financial, industrial, commodity and banking sectors.
These were the areas that contained the largest number of equity securities with
below-market-average price-to-earnings and price-to-book ratios.
Given the continued strength of the market, certain stocks reached their target
prices quicker than we had anticipated, prompting the sale of those securities
and the purchase of new ones. In addition, as certain stocks increased in
valuation, they became more growth-like and were no longer appropriate for this
value-oriented fund. For example, in the second half of 1997 prices on bank
stocks soared, and the resulting valuations converted many of these stocks to
growth stocks. As a result, remaining sectors that were relatively undervalued
became more influential, and their weightings within the Fund increased.
Specifically, we increased the Fund's holdings within the capital equipment,
financial, industrial commodity and consumer durable sectors to make up for the
gap caused by the decline in bank holdings.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
Outstanding performance from several individual stocks during the fiscal year
was driven largely by takeovers. For example, in the technology sector Qwest
Communications acquired LCI International, in which the Fund had a large
exposure; National City Bank acquired First of America, a Fund holding; and
Williams Companies acquired the energy company Mapco, another Fund holding. In
addition, the Fund's holding of Century Telephone nearly doubled in value over
the year, as analysts projected superior earnings growth for the combined
Century Telephone/Pacific Telesis company. Indeed, the merged company
experienced revenue growth and margin expansion after joining forces, as it cut
costs and expanded its territory.
Another merger, between cement manufacturers Southdown and Medusa, also
contributed to the Fund's solid return. But, price gains on these stocks
primarily were driven by excellent fundamentals within the industry. The
supply/demand equation favored the manufacturers, given the steadily increasing
demand for cement from the housing and infrastructure sectors, while the supply
of cement has been virtually unchanged in the last decade. In addition, U.S.
government restrictions on the amount of cement that can be imported helped the
U.S. manufacturers.
DID EVENTS IN ASIA INFLUENCE ANY OF THE FUND'S HOLDINGS?*
On the downside, events in Asia caused certain Fund holdings to decline. As
Asian currency values plummeted, it appears Asian customers chose to curtail
their gaming excursions to the United States. As a result, the Fund's holdings
in Circus Circus and MGM declined for the fiscal year. In addition, CompUSA lost
half of its value due to the unanticipated sharp declines in computer prices.
Lower demand from Asia contributed to the price declines, as did the lack of new
memory-consuming software applications, which prompted revenue declines and
margin contraction.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE DURING THE FISCAL YEAR?*
Only two of the Fund's top 10 holdings remained from last year -- CMS Energy,
1.6% (utilities) and Southtrust Corp., 1.6% (financial services). Rounding out
the top 10 were utilities companies New Century Enterprises, 1.5%, Allegheny
Energy, 1.3%, Century Telephone, 1.5%, El Paso Natural Gas, 1.6% and Teco
Energy, 1.2%; financial companies Bear Stearns,
16
<PAGE> 19
The One Group Disciplined Value Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
1.6% and Paine Webber, 1.2%; and Tyson Foods, 1.1%, a member of the consumer
non-durable sector.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Looking ahead, we plan to maintain our current strategy of broad sector
diversification, stringent in-house research and individual stock selection.
Within each sector, we will continue to look for the best values among medium
capitalization stocks, or those issues with low price/earnings and price/book
ratios.
/s/ Edmund M. Cowart
- --------------------
Edmund M. Cowart
Managing Director, Value Growth Team
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings subject to change.
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
17
<PAGE> 20
The One Group Disciplined Value Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
Dollars
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (3/2/89)
<S> <C> <C> <C>
Fiduciary 28.27% 17.52 14.11%
<CAPTION>
<S> <C>
Fiduciary
</TABLE>
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT Dollars
S&P
Measurement Period BARRA/Midcap
(Fiscal Year Covered) 400/Value Fiduciary
<S> <C> <C>
3/89 10,000 10,000
6/89 10,883 10,989
6/90 12,677 11,372
6/91 13,615 11,572
6/92 15,441 13,451
6/93 17,545 15,278
6/94 17,792 15,895
6/95 22,430 18,443
6/96 27,627 22,150
6/97 34,233 26,704
6/98 43,366 34,253
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
Dollars
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
<S> <C> <C> <C>
Class A 27.90% 17.27% 15.79%
Class A* 22.13% 16.19% 14.96%
<CAPTION>
<S> <C>
Class A
Class A*
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
S&P
Measurement Period BARRA/Midcap
(Fiscal Year Covered) 400/Value Class A* Class A
<S> <C> <C> <C>
2/92 10,000 9,550 10,000
6/92 9,992 9,666 10,121
6/93 11,354 10,948 11,464
6/94 11,514 11,418 11,956
6/95 14,515 13,179 13,801
6/96 17,879 15,788 16,534
6/97 22,153 18,977 19,875
6/98 28,063 24,279 25,419
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
Dollars
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C> <C>
Class B 26.97% 16.38%
Class B** 22.97% 16.12%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
Measurement Period S&P
(Fiscal Year Covered) BARRA/Midcap Class B** Class B
<S> <C> <C> <C>
1/94 10,000 10,000 10,000
6/94 9,344 9,500 9,500
6/95 11,779 10,918 10,918
6/96 14,509 12,985 12,985
6/97 17,978 15,476 15,476
6/98 22,775 19,465 19,665
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Disciplined Value Fund is measured against the S&P/BARRA
Midcap 400 Value Index, an unmanaged index representing the performance of the
lowest price to book securities in the S&P Midcap 400 Index. Investors are
unable to purchase the index directly, although they can invest in the
underlying securities. The performance of the index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B Shares.
The S&P/BARRA Midcap 400 Value Index consists of the average monthly returns of
the S&P 500 Index for periods prior to June 1991. Thereafter, the data are from
the S&P/BARRA Midcap 400 Value Index which corresponds with the initiation of
the S&P/BARRA Midcap 400 Value Index on June 30, 1991.
18
<PAGE> 21
The One Group Large Company Growth Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The One Group Large Company Growth Fund Fiduciary share class posted a total
return of 35.75% for the year ended June 30, 1998. (For information on other
share classes and performance comparisons to indexes, please see page 20.)
TO WHAT DO YOU ATTRIBUTE THE FUND'S SOLID RETURN?
A strong domestic economy, low inflation and declining interest rates all worked
together to maintain a favorable equity environment. Once again, the market
favored the largest growth-oriented companies because of their earnings
reliability and stock liquidity.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary investment strategy during this market climate has been to find good
companies within industries that are growing at a faster rate than the economy.
These are companies that we believe have the ability to exhibit sustained growth
at some multiple of their underlying industry growth rate. In addition, we
search for strong management teams and superior product positioning.
After evaluating the impact of the Asian crisis on the Fund's stocks, we cut the
portfolio's technology holdings because much of these companies' exports went to
Asia. We also increased our retail holdings, as many of these companies purchase
their materials from Asia and thus benefit from lower costs.
This strategy worked well, because the technology sector, as a whole, has
underperformed the market, while the retail sector has outperformed.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
The Fund enjoyed outstanding performance from computer manufacturer Dell
Computer, up 216% for the fiscal year; software giant Microsoft, up 71% and
online service provider America Online, up 278%.
On the other hand, there were a few disappointing performances from the
technology sector. For example, Applied Materials was off 17% and Oracle Corp.
declined 27%.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE?*
Most of the Fund's top 10 holdings remained unchanged during the year. The only
newcomers were Dell Computer, 2.6% (technology) and Lucent Technologies, 2.3%
(technology). The remaining members included General Electric, 6.8% (capital
goods), Microsoft, 6.4% (technology), Coca-Cola, 4.3% (consumer non-durable),
Wal-Mart, 3.2% (retail), Merck, 3.0% (health care), Bristol-Myers Squibb, 3.0%
(health care), Pfizer, 2.9% (health care) and Proctor & Gamble, 2.6% (consumer
non-durable).
WHAT IS YOUR OUTLOOK FOR THE FUND?
Looking ahead, we remain optimistic about continued U.S. economic growth and low
inflation. We believe that interest rates may continue to decline, which would
support ongoing stock market growth, but perhaps not at the unusually strong
pace we've seen over the last several years. As such, it seems prudent to lower
our expectations somewhat for the next year.
Our overall strategy remains intact -- to search for companies with strong
fundamentals, effective management teams and favorable long-term outlooks.
Because the Asian situation remains unresolved, we will continue to monitor its
effects on the Fund's holdings.
/s/ Ashi Parikh
Ashi Parikh
Managing Director, Growth Equity Team
/s/ Richard R. Jandrain III
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
more information about your fund.
19
<PAGE> 22
The One Group Large Company Growth Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT DOLLARS
Since
Inception
1 Year 5 Year (2/28/92)
<S> <C> <C> <C>
Fiduciary 35.75% 22.79% 19.88%
<CAPTION>
<S> <C>
Fiduciary
</TABLE>
<TABLE>
<CAPTION>
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Growth Fiduciary
<S> <C> <C>
2/92 10,000 10,000
6/92 9,743 9,920
6/93 10,550 11,301
6/94 10,522 12,210
6/95 13,755 14,878
6/96 17,505 17,461
6/97 24,215 23,243
6/98 32,661 31,553
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
VALUE OF $10,000 INVESTMENT DOLLARS
<TABLE>
<CAPTION>
Since
Inception
1 Year (2/22/94)
<S> <C> <C> <C>
Class A 35.43% 23.70%
Class A* 29.33% 22.39%
</TABLE>
* Reflects 4.50% Sales Charge.
<TABLE>
<CAPTION>
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Growth Class A* Class A
<S> <C> <C> <C>
2/94 10,000 9,550 10,000
6/94 9,530 9,453 9,898
6/95 12,458 11,486 12,028
6/96 15,854 13,420 14,054
6/97 21,931 17,790 18,631
6/98 29,581 24,085 25,230
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
VALUE OF $10,000 INVESTMENT DOLLARS
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C> <C>
Class B 34.39% 22.49%
Class B** 30.39% 22.26%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
<TABLE>
<CAPTION>
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Growth Class B** Class B
<S> <C> <C> <C>
1/94 10,000 10,000 10,000
6/94 9,539 9,934 9,934
6/95 12,235 11,831 11,831
6/96 15,570 13,952 13,952
6/97 21,539 18,381 18,381
6/98 29,052 24,496 24,696
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
DOLLARS
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C> <C>
Class C 27.63%
Class C** 26.63%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
Measurement Period S&P/BARRA
(Fiscal Year Covered) 500 Growth Class C** Class C
<S> <C> <C> <C>
11/97 10,000 10,000 10,000
6/98 12,458 12,663 12,763
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Large Company Growth Fund is measured against the
S&P/BARRA 500 Growth Index, an unmanaged index representing the performance of
the highest price to book securities in the S&P 500. Investors are unable to
purchase the index directly, although they can invest in the underlying
securities. The performance of the index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management. By
contrast, the performance of the fund reflects the deduction of these
value-added services as well as the deduction of sales charges on Class A Shares
and applicable contingent deferred sales charges on Class B and Class C Shares.
20
<PAGE> 23
The One Group Growth Opportunities Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The One Group Growth Opportunities Fund Fiduciary share class posted a total
return of 31.11% for the year ended June 30, 1998. (For information on other
share classes and performance comparisons to indexes, please see page 22.)
TO WHAT DO YOU ATTRIBUTE THE FUND'S SOLID RETURN?
Medium-capitalization growth stocks continued to benefit from a strong economy,
solid corporate earnings, low inflation and low interest rates. In addition to
these factors, the Fund's performance has benefited from good stock selection.
Instead of looking for stocks based on general economic or market trends, we
evaluate stocks on an individual basis, searching for those with appealing
fundamentals.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary investment strategy is to identify high growth companies within
attractive, fast-growing industries. We look for companies that will benefit
from strong management teams and competitive advantages. These factors should
allow sustained high growth at a rate that outpaces the industry average.
After the Asian crisis erupted, we evaluated the impact of the fallout. Many of
the Fund's technology companies had significant Asian exports, so we cut certain
technology holdings to lessen the impact that decreased Asian demand would have
on these companies. At the same time, we increased our retail holdings because
many of these companies purchase materials from Asia. As such, these retailers
were able to benefit from lower prices on Asian imports.
This strategy worked well, because the technology sector, as a whole,
underperformed the market, while the retail sector outperformed.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
The Fund enjoyed outstanding performance from computer manufacturer Dell
Computer, up 216% for the fiscal year; retailer Just for Feet, up 63% and
technology company Compuware, up 114%.
On the other hand, there were a few disappointing performances from Altera
(technology), down 42% for the fiscal year; KLA-Tencor (technology), down 43%;
and Global Marine (energy), down 19%.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE?*
Half of the Fund's top 10 holdings changed during the year. At year-end, those
that remained in the top 10 included Coca-Cola Enterprises, 3.0% (consumer non-
durable), BMC Software, 2.2% (technology), Just for Feet, 2.0% (retail), AES
Corp., 1.9% (utilities) and AFLAC, 1.6% (financial services). The new members
included America Online, 4.4% (technology), USA Waste Services, 2.5% (capital
equipment), Compuware, 2.0% (technology), Kohl's, 1.6% (retail) and Staples,
1.6% (retail).
WHAT IS YOUR OUTLOOK FOR THE FUND?
Looking ahead, we remain optimistic about continued U.S. economic growth and low
inflation. We believe that interest rates may continue to decline, which would
support ongoing stock market growth, but perhaps not at the unusually strong
pace we've seen over the last several years. As such, it seems prudent to lower
our expectations somewhat for the next year.
Our overall strategy remains intact -- to search for companies with strong
fundamentals, effective management teams and favorable long-term growth rates.
Because the Asian situation remains unresolved, we will continue to monitor its
effects on the Fund's holdings.
/s/ Ashi Parikh
- -------------------------------------
Ashi Parikh
Managing Director, Growth Equity Team
/s/ Richard R. Jandrain III
- -------------------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
more information about your fund.
21
<PAGE> 24
The One Group Growth Opportunities Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (3/2/89)
<S> <C> <C> <C>
Fiduciary 31.11% 19.12% 18.35%
</TABLE>
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Mix Fiduciary
<S> <C> <C>
3/89 $10,000 $10,000
6/89 10,883 10,822
6/90 12,677 13,077
6/91 13,165 14,364
6/92 15,441 16,543
6/93 17,545 20,076
6/94 17,792 20,044
6/95 22,430 24,002
6/96 28,311 29,915
6/97 34,939 36,721
6/98 $44,334 $48,146
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (2/18/92)
<S> <C> <C> <C>
Class A 30.95% 18.85% 15.87%
Class A* 25.07% 17.76% 15.03%
</TABLE>
* Reflects 4.50% Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Mix Class A* Class A
<S> <C> <C> <C>
2/92 $10,000 $ 9,550 $10,000
6/92 9,992 8,448 8,847
6/93 11,354 10,282 10,766
6/94 11,514 10,229 10,710
6/95 14,515 12,224 12,799
6/96 18,321 15,196 15,912
6/97 22,611 18,618 19,495
6/98 $28,691 $24,380 $25,528
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C> <C>
Class B 29.79% 18.09%
Class B** 25.79% 17.84%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P Mix Class B** Class B
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 9,344 9,093 9,093
6/95 11,779 10,772 10,772
6/96 14,868 13,307 13,307
6/97 18,349 16,198 16,198
6/98 $23,283 $20,783 $20,983
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C>
Class C 14.27%
Class C** 13.27%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P Mix Class C** Class C
<S> <C> <C> <C>
11/97 $10,000 $10,000 $10,000
6/98 $11,373 $11,327 $11,427
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The performance of the Growth Opportunities Fund is measured against the
S&P/BARRA Midcap 400 Growth Index, an unmanaged index representing the
performance of the highest price to book securities in the S&P Midcap 400 Index.
Investors are unable to purchase the index directly, although they can invest in
the underlying securities. The performance of the index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management. By contrast, the performance of the fund reflects the deduction of
these value-added services as well as the deduction of sales charges on Class A
Shares and applicable contingent deferred sales charges on Class B and Class C
Shares.
The S&P/BARRA Midcap 400 Growth Index for the Fiduciary Class Shares consists of
the average monthly returns of the Russell 2000 Index for periods prior to June,
1991. Thereafter, the data are from the S&P/BARRA Midcap 400 Growth Index which
corresponds with the initiation of the S&P/BARRA Midcap 400 Growth Index on June
30, 1991.
22
<PAGE> 25
The One Group Small Capitalization Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
For the year ended June 30, 1998, The One Group Small Capitalization Fund
Fiduciary share class posted a total return of 23.58%. (For information on other
share classes and a performance comparison to the index, please see page 24.)
For the fourth year in a row, performance of small-capitalization stocks trailed
that of large-capitalization stocks. Investors continued to favor larger-company
stocks because of their liquidity traits and earnings predictability.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategies during the year were to maintain an average market
capitalization of $500 million or less and enhance the portfolio's
diversification. We started improving the Fund's diversification in November
1997, after shareholders approved a change in the Fund's investment objective.
Previously, the Fund focused on companies based in the Southeast region of the
United States. Now, the Fund invests primarily in small and emerging companies
throughout the United States, seeking to offer growth opportunities from a much
larger universe of companies. The number of companies represented in the
portfolio increased by 40% during the year.
We select stocks on an individual basis, relying on in-depth research to uncover
companies with talented management teams and promising growth characteristics.
As such, we avoid emphasizing particular sectors or industries and, instead,
tend to remain sector neutral.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG HOLDINGS?*
The Fund benefited from impressive performance from several individual holdings.
In particular, furniture retailer Ethan Allen Interiors was up more than 75% for
the year, after doubling in value the previous fiscal year. Safeskin Corp., in
the health care sector, was up more than 179% for the year.
WERE THERE ANY PARTICULARLY WEAK HOLDINGS?*
We significantly reduced the Fund's energy weighting during the year, as oil
prices declined. Nevertheless, several of the Fund's holdings in oil service
companies, which had performed extremely well in fiscal 1997, declined nearly
50% from their highs. In addition, several stocks in the volatile health care
and technology sectors dropped in value.
HOW DID THE FUND'S TOP 10 HOLDINGS CHANGE?*
The Fund's top 10 holdings were led by five technology stocks -- Sanmina, 1.2%,
Tech Data, 1.0%, Platinum Technology, 0.9%, Aspect Telecommunications, 0.8%, and
Comverse Technology, 0.8% -- and three financial stocks -- Protective Life,
1.2%, Sirrom Capital, 0.9% and Alabama National Bancorp, 0.9%. The remaining
members of the top 10 were Ethan Allen Interiors, 1.0% and Hibbett Sporting
Goods, 0.8% (retail).
WHAT IS YOUR OUTLOOK FOR THE FUND?
Looking ahead, we remain optimistic about continued U.S. economic growth and low
inflation. We believe that interest rates may decline further, which would
support ongoing stock market growth. Although the market continues to demand
liquidity, which is provided by large-capitalization stocks, the valuations in
small-company stocks are becoming more compelling on a price/earnings to growth
relationship.
Our overall strategy remains intact -- to take a bottom-up approach in our
search for small companies with promising growth qualities.
/s/ Donald E. Allred
- ---------------------------
Donald E. Allred
Fund Manager
/s/ Richard R. Jandrain III
- ---------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
* Holdings are subject to change.
Please refer to the prospectus and the accompanying financial statements for
more information about your Fund.
23
<PAGE> 26
The One Group Small Capitalization Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (7/1/91)
<S> <C> <C> <C>
Fiduciary 23.58% 14.55% 17.10%
</TABLE>
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 600 Fiduciary
<S> <C> <C>
6/91 $10,000 $10,000
6/92 11,710 12,122
6/93 15,046 15,309
6/94 15,326 15,874
6/95 18,447 17,772
6/96 23,246 21,551
6/97 28,287 24,448
6/98 $33,792 $30,200
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (7/1/91)
<S> <C> <C> <C>
Class A 23.28% 14.42% 17.01%
Class A* 17.69% 13.37% 16.25%
</TABLE>
* Reflects 4.50% Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 600 Class A* Class A
<S> <C> <C> <C>
6/91 $10,000 $ 9,550 $10,000
6/92 11,710 11,577 12,122
6/93 15,046 14,620 15,309
6/94 15,326 15,159 15,877
6/95 18,447 16,972 17,772
6/96 23,246 20,502 21,468
6/97 28,287 23,275 24,371
6/98 $33,792 $28,683 $30,034
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
1 Year (9/12/94)
<S> <C> <C> <C>
Class B 22.24% 15.88%
Class B** 18.24% 15.35%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 600 Class B** Class B
<S> <C> <C> <C>
9/94 $10,000 $10,000 $10,000
6/95 11,188 10,594 10,594
6/96 14,098 12,702 12,702
6/97 17,156 14,320 14,320
6/98 $20,494 $17,199 $17,499
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C> <C>
Class C 3.08%
Class C** 2.16%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) S&P 600 Class C** Class C
<S> <C> <C> <C>
11/97 $10,000 $10,000 $10,000
6/98 $10,826 $10,215 $10,307
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
The above-quoted performance data includes the performance of the Paragon Gulf
South Growth Fund for the period prior to the commencement of operations of The
One Group Small Capitalization Fund on March 26, 1996. Performance for the
Fiduciary Shares is based on Class A Share performance adjusted to reflect the
absence of sales charges.
The performance of the Small Capitalization Fund is measured against the S&P 600
Index, an unmanaged index generally representative of the performance of small
companies in the US stock market. Investors are unable to purchase the index
directly, although they can invest in the underlying securities. The performance
of the index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management. By contrast, the performance of the fund
reflects the deduction of these value-added services as well as the deduction of
sales charges on Class A Shares and applicable contingent deferred sales charges
on Class B and Class C Shares.
24
<PAGE> 27
The One Group International Equity Index Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
For the year ended June 30, 1998, The One Group International Equity Index Fund
Fiduciary share class provided a total return of 9.54%. (For information on
other share classes and a performance comparison to the index, please see page
27.)
TO WHAT DO YOU ATTRIBUTE THE FUND'S PERFORMANCE?
The Fund's strategy has two components. It seeks to invest 90% of its assets in
the developed international markets in a manner designed to track the Morgan
Stanley Capital International Europe, Australia, Far East/
Gross Domestic Product (EAFE/GDP) Index; and it invests the remaining 10% of its
assets in emerging markets.
Over the past 12 months, the difference in return between the developed markets
and the emerging markets was dramatic. The EAFE/GDP Index rose 15.14% over this
period, while the customized index we track in the emerging markets fell 16.09%.
The Fund's return trailed the EAFE/GDP Index due to its investments in emerging
markets and due to fees and expenses charged to the Fund. (An index has no
expenses because it is an unmanaged portfolio.)
WHY DID THE EMERGING MARKETS FALL SO SHARPLY?
The turmoil in the emerging markets began on July 2, 1997, when a rapid decline
in Thailand's currency precipitated an economic crisis throughout Asia. As the
region's currencies dropped, companies' foreign debts grew beyond their ability
to pay. Many companies had borrowed from foreign lenders because interest rates
were lower in those countries than they were at home. The amount of foreign debt
surprised most investors, as companies in these countries did not adequately
disclose those loans. Investors' reacted to these developments and equity prices
plunged along with the currencies.
WHAT ABOUT THE INFLUENCE FROM THE DEVELOPED MARKETS?
European equity markets performed very well this past year, which allowed the
Fund to achieve its positive return in spite of the turmoil in the Asian
markets. The Fund's investments in Europe started the year at more than 61% of
total assets.
HOW DID THE U.S. DOLLAR'S STRENGTH INFLUENCE RETURNS?
Overall performance once again was held back by a strong U.S. dollar, which
increased in value versus nearly every currency across the globe. Because the
Fund's foreign-denominated investments suffered from currency declines in all
the countries where it invests over the past year, the strong U.S. dollar
prevented the Fund from achieving a higher return.
DID THE PORTFOLIO BENEFIT FROM ANY PARTICULARLY STRONG MARKETS?
Equity market returns across Europe outpaced even the exceptional U.S. equity
market during the past 12 months. Among the developed countries, Finland
performed best, up 66%. Other outstanding returns were posted in Italy, up 63%;
Spain, up 50%; Ireland, up 41%; and Austria, France and Germany, each up more
than 30%. European emerging countries also performed well, with Greece up 37%,
Hungary up 25%, and Turkey up 24%.
In contrast, performance in Asia ranged from bad to worse. Japan, the largest
weight in the Fund a year ago at 27% of assets, fell almost 32%. Among the
developed markets in Asia, Malaysia fell 75%, Hong Kong fell 48%, and Singapore
fell 48%. Results in Asia's emerging markets were even worse.
WHAT IS YOUR OUTLOOK FOR THE FUND?
The Fund will continue its strategy of tracking the EAFE/GDP Index with the bulk
of its assets and investing broadly across the emerging markets. We continue to
be optimistic about prospects in the European equity markets. Furthermore,
recent developments in Asia have forced these countries to address their
problems, and we expect those markets to fully recover eventually. We feel that
sticking with the Fund's strategy will allow the Fund to participate in the
recovery.
25
<PAGE> 28
The One Group International Equity Index Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
The Fund, by nature of its investment in 34 foreign countries, continues to
offer superb diversification, especially for an investor with a large allocation
to U.S. equities.
/s/ Norman Meltz
- ------------------------------
Norman Meltz
Independence International Associates Inc.
Fund Sub-Advisor
/s/ Richard R. Jandrain III
- ------------------------------
Richard R. Jandrain III
Senior Managing Director of Equity Securities
Please refer to the prospectus and the accompanying financial statements for
more information about your Fund.
26
<PAGE> 29
The One Group International Equity Index Fund
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (10/28/92)
<S> <C> <C> <C>
Fiduciary 9.54% 10.93% 12.84%
</TABLE>
<TABLE>
<CAPTION>
Measurement Period Morgan Stanley
(Fiscal Year Covered) EAFE/GDP Fiduciary
<S> <C> <C>
10/92 $10,000 $10,000
6/93 12,248 11,812
6/94 14,527 13,636
6/95 15,057 14,209
6/96 16,946 15,803
6/97 19,378 18,116
6/98 $22,312 $19,843
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Year (4/23/93)
<S> <C> <C> <C>
Class A 9.34% 10.70% 10.21%
Class A* 4.40% 9.68% 9.23%
</TABLE>
* Reflects 4.50% Sales Charge.
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Measurement Period Morgan Stanley
(Fiscal Year Covered) EAFE/GDP Class A* Class A
<S> <C> <C> <C>
4/93 $10,000 $ 9,550 $ 10,000
6/93 9,981 9,510 9,958
6/94 11,837 10,953 11,469
6/95 12,269 11,374 11,913
6/96 13,808 12,641 13,248
6/97 15,790 14,448 15,144
6/98 $18,181 $15,809 $416,556
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
Since
Inception
1 Year (1/14/94)
<S> <C> <C>
Class B 8.48% 8.53%
Class B** 4.48% 8.19%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
<TABLE>
<CAPTION>
Measurement Period Morgan Stanley
(Fiscal Year Covered) EAFE/GDP Class B** Class B
<S> <C> <C> <C>
1/94 $10,000 $10,000 $10,000
6/94 10,057 10,323 10,323
6/95 10,424 10,650 10,650
6/96 11,732 11,712 11,712
6/97 13,415 13,278 13,278
6/98 $15,446 $14,203 $14,403
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
Since
Inception
(11/4/97)
<S> <C>
Class C 16.34%
Class C** 15.34%
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge.
<TABLE>
<CAPTION>
Measurement Period Morgan Stanley Dollars
(Fiscal Year Covered) EAFE/GDP Class C** Class C
<S> <C> <C> <C>
11/97 $10,000 $10,000 $10,000
6/98 $12,365 $11,534 $11,634
</TABLE>
The performance data quoted represents past performance and is not an indication
of future results. Investment return and NAV will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The total return set forth may reflect the waiver of a portion of the
fund's fees for certain periods since the inception date, without the waiver,
total return would have been lower.
International investing involves increased risk and volatility.
The performance of the International Equity Index Fund is measured against the
Morgan Stanley EAFE/GDP Index, an unmanaged index generally representative of
the performance of international stock markets. Investors are unable to purchase
the index directly, although they can invest in the underlying securities. The
performance of the index does not reflect the deduction of expenses associated
with a mutual fund, such as investment management. By contrast, the performance
of the fund reflects the deduction of these value-added services as well as the
deduction of sales charges on Class A Shares and applicable contingent deferred
sales charges on Class B and Class C Shares.
27
<PAGE> 30
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Asset Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
ASSET BACKED SECURITIES (2.0%):
Financial Services (2.0%):
$ 42 Advanta Mortgage Loan Trust, Series
1994-3, Class A2, 7.60%,
7/25/10.......................... $ 42
542 Case Equipment Loan Trust, Series
1996-B, Class A3, 6.65%,
9/15/03.......................... 552
1,000 Chemical Master Credit Card Trust,
Series 1995-2, Class A, 6.23%,
6/15/03.......................... 1,010
480 Greentree Financial Corp., Series
1996-3, Class A3, 6.70%,
5/15/27.......................... 487
800 Greentree Financial Corp., Series
1996-7, Class A4, 6.80%,
10/15/27......................... 830
105 KeyCorp Auto Grantor Trust, Series
1995-A A, 5.80%,................. 106
312 Nationsbank Auto Owner Trust,
Series 1996-A A3, 6.38%,
7/15/00.......................... 314
525 Olympic Automobile Receivables
Trust, 6.05%, 8/15/02............ 526
1,025 Olympic Automobile Receivables
Trust, Series 1996-B, Class A4,
6.70%, 3/15/02................... 1,036
395 The Money Store Home Equity Trust,
Series 1993-C, 5.18%, 7/15/06.... 391
73 The Money Store Home Equity Trust,
Series 1994-B, Class A2, 6.80%,
2/15/13.......................... 74
--------
Total Asset Backed Securities 5,368
--------
COMMERCIAL PAPER (1.9%):
Financial Services (1.9%):
5,200 Merrill Lynch, 5.59%, 9/18/98
(d).............................. 5,137
--------
Total Commercial Paper 5,137
--------
COMMON STOCKS (53.5%):
Business Equipment & Service (0.7%):
14 Miller (Herman), Inc............... 333
25 Service Corp. International........ 1,085
11 U.S.A. Waste Services, Inc.
(b)(c)........................... 523
--------
1,941
--------
Capital Goods (3.9%):
9 Cooper Industries, Inc............. 483
18 Emerson Electric Co................ 1,092
50 General Electric Co................ 4,504
16 Harsco Corp........................ 738
8 Hubbell, Inc., Class B............. 329
13 Johnson Controls, Inc.............. 725
6 Medusa Corp........................ 389
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Capital Goods, continued:
25 Teleflex, Inc...................... $ 939
21 Tyco International, Ltd............ 1,335
--------
10,534
--------
Consumer Durable (0.7%):
25 Autozone, Inc. (b)(c).............. 789
21 Chrysler Corp...................... 1,201
--------
1,990
--------
Consumer Non-Durable (4.6%):
28 Coca-Cola Co....................... 2,360
25 ConAgra, Inc....................... 792
14 Interstate Bakeries Corp........... 471
25 Intimate Brands, Inc............... 675
10 Lancaster Colony Corp.............. 367
18 McCormick & Co., Inc............... 654
24 Newell Companies, Inc.............. 1,176
43 Philip Morris Co., Inc............. 1,709
10 Proctor & Gamble Co................ 902
17 Quaker Oats Co..................... 917
15 Revlon, Inc. (b)(c)................ 745
21 Rubbermaid, Inc.................... 710
18 Sara Lee Corp...................... 1,029
--------
12,507
--------
Consumer Services (2.7%):
26 Belo (A.H.) Corp., Series A........ 626
24 Hasbro, Inc........................ 930
30 Hilton Hotels Corp................. 849
13 MGM Grand, Inc. (b)(c)............. 420
22 Tele-Communications, Inc. (b)(c)... 855
19 Time Warner, Inc................... 1,650
17 Viacom, Inc. (b)................... 996
9 Walt Disney Co..................... 893
--------
7,219
--------
Energy (3.9%):
12 Ashland, Inc....................... 609
10 Devon Energy Corp. (c)............. 363
10 Dresser Industries, Inc............ 432
46 Exxon Corp......................... 3,259
30 Royal Dutch Petroleum, NY Shares... 1,633
27 Texaco, Inc........................ 1,612
16 Tosco Corp. (c).................... 479
10 Transocean Offshore, Inc........... 436
17 Ultramar Diamond Shamrock Corp..... 521
33 USX-Marathon Group................. 1,119
--------
10,463
--------
Financial Services (9.3%):
11 Allstate Corp...................... 1,026
9 American International Group,
Inc.............................. 1,343
6 Associates First Capital, Class
A................................ 469
</TABLE>
Continued
28
<PAGE> 31
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Asset Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
11 Bear Stearns Co., Inc.............. $ 614
24 Charter One Financial, Inc......... 809
23 Chase Manhattan Corp............... 1,744
13 Cigna Corp......................... 897
11 Equitable Co., Inc................. 809
27 Federal National Mortgage Assoc.... 1,622
23 First Tennessee National Corp...... 729
18 First Union Corp................... 1,031
10 Hartford Financial Services
Group............................ 1,121
21 MBNA Corp.......................... 690
14 Mercantile Bankshares Corp......... 498
19 Morgan Stanley Dean Witter
Discover......................... 1,754
16 National City Corp................. 1,157
36 NationsBank Corp................... 2,761
6 PMI Group, Inc..................... 462
26 Southtrust Corp.................... 1,151
13 State Street Corp.................. 869
38 Travelers Group, Inc............... 2,322
3 Wells Fargo & Co................... 1,255
--------
25,133
--------
Health Care (5.9%):
33 American Home Products Co.......... 1,713
12 Bausch & Lomb, Inc................. 596
16 Baxter International, Inc.......... 866
10 Boston Scientific Corp. (b)(c)..... 731
24 Bristol Myers Squibb Co............ 2,713
8 Cardinal Health, Inc............... 703
18 IDEXX Laboratories, Inc. (b)....... 458
9 Johnson & Johnson.................. 634
20 Medtronic, Inc..................... 1,275
12 Merck & Co., Inc................... 1,578
8 Pfizer, Inc........................ 837
16 Schering Plough Corp............... 1,439
6 Sofamor Danek Group, Inc. (b)...... 545
27 Warner Lambert Co.................. 1,852
--------
15,940
--------
Raw Materials (2.0%):
12 Betzdearborn, Inc.................. 498
18 Crompton & Knowles Corp............ 456
18 Du Pont (EI) de Nemours & Co....... 1,350
22 Ferro Corp......................... 561
23 Morton International, Inc.......... 585
17 Nalco Chemical Co.................. 580
16 Olin Corp.......................... 663
18 Praxair, Inc....................... 847
--------
5,540
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail (3.7%):
23 Dayton Hudson Corp................. $ 1,130
36 Just For Feet, Inc. (b)............ 1,023
21 Kohl's Corp. (b)................... 1,063
30 Kroger Co. (b)..................... 1,273
42 Officemax, Inc. (b)................ 693
12 Outback Steakhouse, Inc. (b)(c).... 476
16 Safeway, Inc. (b).................. 643
46 Wal-Mart Stores, Inc. (c).......... 2,813
24 Williams Sonoma, Inc. (b).......... 770
--------
9,884
--------
Shelter (1.5%):
6 Armstrong World Industries, Inc.... 411
23 Kimberly Clark Corp................ 1,060
28 Leggett & Platt, Inc............... 705
17 Masco Corp......................... 1,004
18 Pentair, Inc....................... 769
--------
3,949
--------
Technology (8.7%):
18 American Power Conversion (b)...... 543
13 Applied Materials, Inc. (b)........ 378
18 BMC Software, Inc. (b)............. 924
22 Cadence Design Systems, Inc. (b)... 681
29 Cisco Systems, Inc. (b)............ 2,693
29 Dell Computer Corp. (b)............ 2,673
13 Gateway 2000, Inc. (b)(c).......... 643
25 Hewlett Packard Co................. 1,503
36 Intel Corp......................... 2,639
20 International Business Machines.... 2,239
8 Lockheed Martin Corp............... 815
19 LSI Logic Corp. (b)................ 436
20 Lucent Technologies, Inc........... 1,689
16 Maxim Integrated Products, Inc.
(b).............................. 513
48 Microsoft Corp. (b)................ 5,169
--------
23,538
--------
Utilities (5.9%):
18 AES Corp. (b)...................... 951
22 Baltimore Gas & Electric Co........ 677
19 Century Telephone Enterprises...... 885
20 Cinergy Corp....................... 711
17 El Paso Natural Gas................ 646
33 Energy East Corp................... 1,353
24 General Public Utilities Corp...... 908
30 GTE Corp........................... 1,669
13 L G & E Energy Corp................ 346
13 MCN Corp........................... 311
39 Qwest Communications International
(b).............................. 1,377
51 SBC Communications, Inc............ 2,028
24 Sprint Corp........................ 1,713
</TABLE>
Continued
29
<PAGE> 32
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Asset Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities, continued:
24 Williams Cos., Inc. (c)............ $ 797
34 WorldCom, Inc. (b)(c).............. 1,647
--------
16,019
--------
Total Common Stocks 144,657
--------
CORPORATE BONDS (10.8%):
Banking, Finance & Insurance (5.8%):
$1,000 Association Corp., 8.27%,
11/8/01.......................... 1,066
1,000 BankAmerica Corp., 8.13%, 2/1/02... 1,063
500 Chrysler Financial Corp., 5.88%,
2/7/01........................... 499
1,200 Circuit City Credit Card Master
Trust, 6.38%, 8/15/05............ 1,214
1,000 First Hawaiian, Inc., 6.25%,
8/15/00.......................... 1,001
610 Ford Credit Auto Loan Master Trust,
5.50%, 2/15/03................... 606
500 Ford Motor Credit Corp., 8.38%,
1/15/00.......................... 518
250 General Motors Acceptance Corp.,
7.00%, 3/1/00.................... 254
1,250 General Motors Acceptance Corp.,
8.25%, 2/24/04................... 1,365
1,000 Goldman Sachs Group, 7.20%, 3/1/07,
144 A............................ 1,063
750 Huntington National Bank, 6.75%,
6/15/03.......................... 769
1,000 International Lease Finance Corp.,
5.88%, 1/15/01................... 996
1,000 KeyCorp National Bank, 6.75%,
6/15/03.......................... 1,025
300 Lehman Brothers Holdings, Inc.,
8.88%, 11/1/98................... 303
500 Lehman Brothers, Inc., 9.88%,
10/15/00......................... 539
413 MBNA Master Credit Card, 5.40%,
3/15/99.......................... 411
800 McDonnell Douglas Corp., 9.30%,
9/11/02.......................... 825
307 McDonnell Douglas Corp., 6.45%,
12/5/02.......................... 311
1,250 Midland Bank PLC, 6.95%, 3/15/11... 1,303
250 Nationsbank Texas, 6.75%,
8/15/00.......................... 254
500 Suntrust Banks, 7.38%, 7/1/02...... 523
--------
15,908
--------
Consumer Non-Durable (0.4%):
250 Anheuser Busch Co., 8.75%,
12/1/99.......................... 260
500 Campbell Soup Co., 5.63%,
9/15/03.......................... 490
250 Coca-Cola Co., 7.88%, 9/15/98...... 251
--------
1,001
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Governments (Foreign) (0.4%):
$1,000 Province of Quebec, 6.50%,
1/17/06.......................... $ 1,021
--------
Industrials (2.4%):
1,000 Cummins Engine Co., Inc., 6.45%,
3/1/05........................... 1,009
1,000 Dayton Hudson Corp., 7.25%,
9/1/04........................... 1,053
200 Du Pont (EI) de Nemours & Co.,
8.70%, 2/7/01.................... 214
250 Ford Motor Co., 9.00%, 9/15/01..... 271
750 Hertz, 6.00%, 1/15/03.............. 744
200 Illinois Tool Works, 7.50%,
12/1/98.......................... 201
500 J C Penney & Co., 5.38%,
11/15/98......................... 498
250 Johnson & Johnson, 7.38%,
6/29/02.......................... 262
1,250 Occidental Petroleum, 9.25%,
8/1/19........................... 1,577
750 Sears Roebuck Acceptance, 7.13%,
5/2/03........................... 776
--------
6,605
--------
Transportation (0.2%):
500 Union Pacific Co., 7.60%, 5/1/05... 535
--------
Utilities (1.6%):
500 AT&T Corp., 6.00%, 8/1/00.......... 499
750 AT&T Corp., 7.50%, 6/1/06.......... 810
1,250 Columbia Gas System, 6.39%,
11/28/00......................... 1,258
250 Duke Power Co., 7.00%, 7/1/00...... 255
250 Southern California Edison, 7.50%,
4/15/99.......................... 253
675 Virginia Electric & Power, 9.15%,
6/10/99.......................... 695
500 Virginia Electric & Power, 6.63%,
4/1/03........................... 512
--------
4,282
--------
Total Corporate Bonds 29,352
--------
FEDERAL AGENCY DEBENTURES (0.7%):
Federal National Mortgage Assoc. (0.7%):
1,000 5.55%, 9/8/98...................... 999
1,000 5.53%, 2/10/99..................... 1,000
--------
Total Federal Agency Debentures 1,999
--------
U.S. GOVERNMENT AGENCY MORTGAGES (15.4%):
Federal Home Loan Mortgage Corp. (5.2%):
102 10.00%, 9/1/03, Pool #E30407....... 108
280 8.00%, 3/1/08, Pool #E45796........ 289
896 7.00%, 1/1/12, Pool #E66116........ 914
1,483 6.50%, 3/1/13, Pool #E69466........ 1,493
1,484 6.00%, 3/1/13, Pool #E69409........ 1,470
1,000 7.00%, 6/1/13, Pool #E00554........ 1,011
1,000 6.50%, 7/1/13, TBA................. 1,012
1,000 6.00%, 7/1/13, TBA................. 988
269 10.50%, 10/1/20, Pool #D24679...... 299
</TABLE>
Continued
30
<PAGE> 33
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Asset Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCY MORTGAGES, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
$ 535 8.00%, 4/1/25, Pool #C00401........ $ 555
370 8.00%, 5/1/25, Pool #D60455........ 384
402 7.00%, 2/1/26, Pool #D69343........ 409
637 6.50%, 2/1/26, Pool #D68616........ 637
833 6.50%, 2/1/26, Pool #D68124........ 833
482 7.00%, 3/1/26, Pool #D69430........ 490
791 7.50%, 5/1/26, Pool #C00460........ 813
586 8.50%, 7/1/26, Pool #C00472........ 613
896 7.00%, 10/1/26, Pool #D75494....... 911
858 7.50%, 12/1/27, Pool #C00542....... 879
--------
14,108
--------
Federal National Conventional Loan (0.3%):
534 8.00%, 6/1/24, Pool #270402........ 555
301 8.00%, 6/1/24, Pool #250085........ 313
--------
868
--------
Federal National Mortgage Assoc. (4.8%):
250 6.40%, 1/13/04 (c)................. 250
807 6.50%, 5/1/11, Pool #337195........ 815
1,480 6.00%, 3/1/13, Pool #417081........ 1,464
1,494 6.50%, 4/1/13, Pool #414513........ 1,503
1,000 7.00%, 6/1/13, Pool #427488........ 1,018
2,000 6.50%, 6/25/13, Series 94-1 K...... 2,026
739 7.00%, 7/1/25, Pool #317252........ 753
730 6.50%, 2/1/26, Pool #337115........ 729
994 7.00%, 3/1/26, Pool #365488........ 1,010
753 7.50%, 5/1/26, Pool #344916........ 775
863 7.00%, 5/1/26, Pool #346269........ 877
859 7.50%, 11/1/26, Pool #363626....... 883
996 6.50%, 2/1/28, Pool #417157........ 992
--------
13,095
--------
Government National Mortgage Assoc. (5.1%):
678 5.50%, 4/20/11, Pool #2222......... 655
103 8.00%, 4/15/17, Pool #192100....... 108
59 8.00%, 5/15/22, Pool #329176....... 62
85 6.50%, 1/15/24, Pool #376656....... 86
209 8.00%, 4/15/24, Pool #376038....... 218
895 8.00%, 8/15/24, Pool #394024....... 932
1,260 7.00%, 8/15/25, Pool #413007....... 1,285
909 6.50%, 4/15/26, Pool #424185....... 910
971 6.50%, 4/15/26, Pool #416192....... 971
751 7.50%, 5/15/26, Pool #375345....... 774
903 7.00%, 5/15/26, Pool #375344....... 921
684 8.50%, 1/15/27, Pool #432266....... 723
999 8.00%, 9/15/27, Pool #451932....... 1,035
957 7.50%, 12/15/27, Pool #455358...... 984
987 7.00%, 4/15/28, Pool #473915....... 1,003
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCY MORTGAGES, CONTINUED:
Government National Mortgage Assoc., continued:
$ 999 7.50%, 5/15/28, Pool# 465069....... $ 1,027
1,000 7.00%, 6/15/28, Pool #477123....... 1,016
1,000 6.50%, 7/1/28, TBA................. 997
--------
13,707
--------
Total U.S. Government Agency Mortgages 41,778
--------
U.S. TREASURY OBLIGATIONS (12.4%):
U.S. Treasury Bills (0.1%):
30 8/8/98 (d)......................... 30
30 8/20/98 (d)........................ 30
105 8/27/98 (d)........................ 104
55 9/24/98 (d)........................ 54
--------
218
--------
U.S. Treasury Bonds (5.8%):
750 11.25%, 2/15/15 (c)................ 1,201
5,900 7.50%, 11/15/16 (c)................ 7,080
4,700 8.13%, 8/15/19..................... 6,058
1,000 7.88%, 2/15/21 (c)................. 1,268
--------
15,607
--------
U.S. Treasury Notes (6.5%):
200 8.88%, 2/15/99..................... 204
300 5.88%, 3/31/99 (c)................. 301
300 6.00%, 10/15/99.................... 302
250 7.75%, 11/30/99 (c)................ 257
6,000 6.50%, 5/31/01 (c)................. 6,151
8,500 6.50%, 8/31/01 (c)................. 8,729
150 6.25%, 2/15/03 (c)................. 154
1,500 6.50%, 5/15/05 (c)................. 1,582
--------
17,680
--------
Total U.S. Treasury Obligations 33,505
--------
REPURCHASE AGREEMENTS (4.0%):
10,900 Prudential Securities, 6.10%,
7/1/98, (Collateralized by
$11,056 U.S. Treasury Note,
5.63%, 11/30/99, market value
$11,118)......................... 10,900
--------
Total Repurchase Agreements
............................................... 10,900
--------
SHORT-TERM SECURITIES HELD AS COLLATERAL (10.7%):
Master Notes (1.9%):
1,103 Bear Stearns Mortgage Capital,
6.77%, 10/9/98*.................. 1,103
919 Danaher Corp., 6.68%, 10/9/98*..... 919
552 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*.................. 552
</TABLE>
Continued
31
<PAGE> 34
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Asset Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Master Notes, continued:
$1,250 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*.................. $ 1,250
331 NationsBanc Capital Markets, 6.70%,
7/1/98*.......................... 331
1,103 Williamette Industries, Inc.,
5.85%, 7/23/98*.................. 1,103
--------
5,258
--------
Put Bonds (3.0%):
919 Associates Corp. N.A., 5.79%,
1/4/99*.......................... 919
735 Branch Banking & Trust, 5.92%,
12/10/99*........................ 735
368 Citicorp, 5.94%, 8/3/98*........... 368
846 Evangelical Lutheran, 5.74%,
4/28/00*......................... 844
1,103 GMAC, 5.85%, 11/10/99*............. 1,104
919 Goldman Sachs, 6.06%, 11/21/00*.... 919
919 Greenwich Capital, 6.11%,
12/13/99*........................ 919
919 Lehman Brothers Holdings, 5.85%,
8/18/99*......................... 919
368 Merrill Lynch, 6.07%, 11/13/98*.... 368
919 PNC Bank, 5.74%, 10/2/98*.......... 919
--------
8,014
--------
Repurchase Agreements (5.8%):
3,677 Donaldson, Lufkin & Jenrette,
6.65%, 7/1/98 (Collateralized by
$3,759 various Corporate and
Government Securities,
2.85% - 17.25%, 10/15/02 -
4/15/35, market value $3,818).... 3,677
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$1,838 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $1,959 various
Corporate Bonds, 0.00%, 7/7/98 -
9/18/98, market value $1,952).... $ 1,838
9,450 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $9,686 various
Corporate Bonds, 0.00% - 10.13%,
9/15/99 - 10/17/96, market value
$10,138)......................... 9,450
6 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $7 Media One
Group Bonds, 0.00%, 10/5/98,
market value $7)................. 6
294 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $1,841 various
Government Securities, 0.00% -
10.00%, 12/1/18 - 5/1/24, market
value $303)...................... 294
368 Paine Webber, 6.40%, 7/1/98
(Collateralized by $367 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$386)............................ 368
--------
15,633
--------
Total Short-Term Securities Held as
Collateral 28,905
--------
Total (Cost $264,919) (a) $301,601
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $270,656.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $46. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $38,554
Unrealized depreciation..................................... (1,918)
-------
Net unrealized appreciation................................. $36,636
=======
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
(d) Serves as collateral for futures contracts.
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- --------- ------------- --------- -------
<C> <S> <C> <C>
20 Long S&P 500, September 1998 Futures $5,534 $5,716
</TABLE>
See notes to financial statements.
32
<PAGE> 35
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Income Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS (94.8%):
Business Equipment & Services (1.9%):
63 Automatic Data Processing, Inc.... $ 4,591
180 Browning-Ferris Industries, Inc.
(b)............................. 6,255
225 Dun & Bradstreet Corp. (b)........ 8,128
----------
18,974
----------
Capital Goods (6.2%):
215 Cooper Industries, Inc............ 11,812
87 Deere & Co........................ 4,600
80 Emerson Electric Co............... 4,825
365 General Electric Co............... 33,215
100 Johnson Controls, Inc............. 5,706
----------
60,158
----------
Consumer Durable (1.9%):
75 Chrysler Corp..................... 4,228
250 Ford Motor Co..................... 14,750
----------
18,978
----------
Consumer Non-Durable (13.8%):
120 American Greetings Corp., Class
A............................... 6,113
254 Campbell Soup Co.................. 13,473
100 Clorox Co......................... 9,538
242 Coca-Cola Co...................... 20,690
450 ConAgra, Inc...................... 14,259
110 Eastman Kodak Co.................. 8,037
150 H.J. Heinz Co..................... 8,419
120 International Flavors &
Fragrances, Inc. (b)............ 5,213
150 McCormick & Co., Inc.............. 5,358
60 Newell Co., Inc................... 2,989
165 PepsiCo, Inc...................... 6,796
325 Philip Morris Co., Inc............ 12,797
165 Proctor & Gamble Co............... 15,024
104 Quaker Oats Co.................... 5,714
----------
134,420
----------
Consumer Services (1.0%):
120 McGraw-Hill Co., Inc.............. 9,788
----------
Energy (8.9%):
265 Amoco Corp........................ 11,031
100 Atlantic Richfield Co............. 7,813
100 Dresser Industries, Inc. (b)...... 4,406
300 Exxon Corp........................ 21,394
100 Halliburton Co. (b)............... 4,456
210 Mobil Corp........................ 16,091
350 Royal Dutch Petroleum Co. (b)..... 19,184
75 USX-Marathon Group................ 2,573
----------
86,948
----------
Financial Services (18.4%):
115 Allstate Corp..................... 10,530
210 American Express Co............... 23,941
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
72 Associates First Capital, Class
A............................... $ 5,541
240 BankAmerica Corp.................. 20,745
146 Chase Manhattan Corp.............. 11,027
65 Citicorp.......................... 9,701
216 Federal National Mortgage Assoc... 13,122
240 First Tennessee National Corp..... 7,575
100 First Union Corp.................. 5,825
95 J.P. Morgan & Co., Inc............ 11,127
155 Lincoln National Corp............. 14,163
125 National City Corp................ 8,875
110 Norwest Corp...................... 4,111
200 Reliastar Financial Corp.......... 9,600
98 Southtrust Corp................... 4,241
80 TransAmerica Corp................. 9,210
240 U.S. Bancorp...................... 10,320
----------
179,654
----------
Health Care (13.5%):
126 Abbott Labs....................... 5,150
400 American Home Products Co......... 20,700
250 Baxter International, Inc......... 13,453
200 Bristol Myers Squibb Co........... 22,987
125 Merck & Co., Inc.................. 16,719
125 Pfizer, Inc....................... 13,586
200 Schering Plough Corp.............. 18,325
300 Warner Lambert Co................. 20,813
----------
131,733
----------
Multi-Industry (0.6%):
70 Minnesota Mining & Manufacturing
Co.............................. 5,753
----------
Raw Materials (3.8%):
150 Dow Chemical Co. (b).............. 14,502
140 Du Pont (EI) de Nemours & Co...... 10,448
150 Nalco Chemical Co................. 5,269
83 Olin Corp......................... 3,460
160 Pall Corp. (b).................... 3,280
----------
36,959
----------
Retail (3.5%):
178 Albertsons, Inc................... 9,223
163 May Department Stores Co.......... 10,680
185 Wal-Mart Stores, Inc. (b)......... 11,238
80 Walgreen Co. (b).................. 3,305
----------
34,446
----------
Shelter (7.0%):
24 Avalon Bay Communities, Inc....... 891
66 Boston Properties, Inc............ 2,280
45 Camden Property Trust............. 1,348
56 CBL & Associates Properties....... 1,353
35 Chelsea GCA Realty, Inc., (b)..... 1,416
</TABLE>
Continued
33
<PAGE> 36
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Income Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Shelter, continued:
44 Colonial Properties Trust......... $ 1,364
138 Equity Office Properties Trust.... 3,902
35 Equity Residential Properties
Trust........................... 1,651
73 Federal Realty Trust.............. 1,747
32 Gables Residential Trust.......... 857
120 Kimberly Clark Corp............... 5,505
66 Liberty Property Trust............ 1,685
31 Macerich Co....................... 912
58 Mack Cali Realty Corp............. 1,980
142 Masco Corp........................ 8,585
61 Merry Land & Investment Co........ 1,283
55 Mills Corp........................ 1,327
73 Patriot American Hospitality...... 1,747
66 Prentiss Properties Trust......... 1,614
47 Public Storage, Inc............... 1,313
49 Shurgard Storage Centers.......... 1,349
29 Simon Debartolo Group, Inc........ 943
270 Sonoco Products Co................ 8,151
43 Spieker Properties, Inc........... 1,682
95 Starwood Hotels & Resorts (b)..... 4,599
68 Summit Properties, Inc............ 1,292
74 Taubman Centers, Inc.............. 1,059
48 Vornado Realty Trust.............. 1,917
28 Weeks Corp........................ 898
80 Weyerhaeuser Co................... 3,695
----------
68,345
----------
Technology (5.5%):
60 AMP, Inc. (b)..................... 2,063
100 Boeing Co......................... 4,456
127 Hewlett Packard Co................ 7,604
105 International Business Machines... 12,055
60 Lockheed Martin Corp. (b)......... 6,353
60 United Technologies Corp. (b)..... 5,550
150 Xerox Corp........................ 15,243
----------
53,324
----------
Transportation (0.2%):
70 Norfolk Southern Corp............. 2,087
----------
Utilities (8.6%):
181 AT&T Corp. (b).................... 10,332
180 BellSouth Corp.................... 12,083
147 Central & South West Corp......... 3,951
49 El Paso Energy Corp. (c).......... 2,597
50 El Paso Natural Gas Co............ 1,913
160 Entergy Corp...................... 4,600
230 GTE Corp.......................... 12,793
200 L G & E Energy Corp............... 5,423
80 New Century Energies, Inc......... 3,635
140 Northern States Power Co.......... 4,008
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities, continued:
400 SBC Communications, Inc........... $ 15,999
90 Sprint Corp....................... 6,345
----------
83,679
----------
Total Common Stocks 925,246
----------
CONVERTIBLE BONDS (2.5%):
Health Care (1.1%):
$5,000 Alza Corp., 5.00%, 5/1/06......... 6,350
3,500 Athena Neurosciences, 4.75%,
11/15/04, Callable 11/15/00 @
102.7 (b)....................... 4,051
----------
10,401
----------
Shelter (1.1%):
6,500 Hilton Hotels Corp., 5.00%,
5/15/06......................... 6,752
4,500 Medical Care International, 6.75%,
10/1/06......................... 4,123
----------
10,875
----------
Utilities (0.3%):
2,500 U.S. Filter Corp., 4.50%,
12/15/01........................ 2,547
----------
Total Convertible Bonds 23,823
----------
PREFERRED STOCKS (2.4%):
Capital Goods (0.3%):
125 Ingersoll-Rand Co. (c)............ 3,000
----------
Computer Software (0.5%):
55 Microsoft Corp.(c)................ 5,225
----------
Financial Services (0.7%):
60 Newell Financial Trust (c)........ 3,458
45 St. Paul Capital (c).............. 3,204
----------
6,662
----------
Industrial Goods & Services (0.9%):
50 Corning Delaware (c).............. 2,825
120 Crown Cork & Seal Co. (c)......... 5,370
----------
8,195
----------
Total Preferred Stocks 23,082
----------
REPURCHASE AGREEMENTS (0.3%):
$3,405 Prudential Securities, 6.10%,
7/1/98 (Collateralized by $3,505
U.S. Treasury Bills, 9/3/98,
market value $3,474)............ 3,405
----------
Total Repurchase Agreements 3,405
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL (5.4%):
Master Notes (1.0%):
2,021 Bear Stearns Mortgage Capital,
6.77%, 10/9/98*................. 2,021
1,684 Danaher Corp., 6.68%, 10/9/98*.... 1,684
</TABLE>
Continued
34
<PAGE> 37
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Income Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Master Notes, continued:
$1,011 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*................. $ 1,011
2,292 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*................. 2,292
606 NationsBanc Capital Markets,
6.70%, 7/1/98*.................. 606
2,021 Williamette Industries, Inc.,
5.85%, 7/23/98*................. 2,021
----------
9,635
----------
Put Bonds (1.5%):
1,684 Associates Corp. N.A., 5.79%,
1/4/99*......................... 1,683
1,347 Branch Banking & Trust, 5.92%,
12/10/99*....................... 1,347
674 Citicorp, 5.94%, 8/3/98*.......... 674
1,550 Evangelical Lutheran, 5.74%,
4/28/00*........................ 1,547
2,021 GMAC, 5.85%, 11/10/99*............ 2,025
1,684 Goldman Sachs, 6.66%, 11/21/00*... 1,684
1,684 Greenwich Capital, 6.11%,
12/13/99........................ 1,684
1,684 Lehman Brothers Holdings, 5.85%,
8/18/99*........................ 1,685
674 Merrill Lynch, 6.07%, 11/13/98*... 674
1,684 PNC Bank, 5.74%, 10/2/98*......... 1,683
----------
14,686
----------
Repurchase Agreements (2.9%):
6,737 Donaldson, Lufkin & Jenrette,
6.65%, 7/1/98 (Collateralized by
$6,888 various Corporate and
Government Securities,
2.85% - 17.25%,
10/15/02 - 4/15/35, market value
$6,996)......................... 6,737
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$3,369 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $3,590
various Corporate Bonds, 0.00%,
7/7/98 - 9/18/98, market value
$3,577)......................... $ 3,369
17,315 Lehman Brothers, 6.55%, 7/1/98
(Collateralized by $17,748
various Corporate Bonds,
0.00% - 10.13%,
9/15/99 - 10/17/96, market value
$18,576)........................ 17,315
12 Lehman Brothers, 6.47%, 7/1/98
(collateralized by $12 Media One
Group Bonds, 0.00%, 10/5/98,
market value $12)............... 12
539 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $3,374
various Government Securities
0.00% - 10.00%, 12/1/18-5/1/24,
market value $555).............. 539
674 Paine Webber, 6.40%, 7/1/98
(Collateralized by $672 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$707)........................... 674
----------
28,646
----------
Total Short-Term Securities Held as
Collateral 52,967
----------
Total (Cost $549,687) (a) $1,028,523
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $976,168.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting to
approximately $4. Cost for federal income tax purposes differs from value by
net unrealized appreciation of securities as follows (amounts in
thousands.):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $483,794
Unrealized depreciation..................................... (4,962)
--------
Net unrealized appreciation................................. $478,832
========
</TABLE>
(b) A portion of this security was loaned as of June 30, 1998
(c) Non-income producing securities
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
35
<PAGE> 38
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER (0.7%):
Financial Services (0.7%):
$9,000 Merrill Lynch, 5.56%, 9/9/98...... $ 8,904
----------
Total Commercial Paper 8,904
----------
COMMON STOCKS (98.3%):
Business Equipment & Services (1.8%):
40 Automatic Data Processing, Inc.... 2,946
25 Browning-Ferris Industries,
Inc............................. 868
12 Canadian Moore Corp., Ltd......... 160
10 Ceridian Corp..................... 613
23 Cognizant Corp.................... 1,449
20 Computer Sciences Corp. (b)....... 1,311
12 Deluxe Corp....................... 415
23 Dun & Bradstreet Corp............. 839
18 Ecolab, Inc....................... 554
21 Equifax, Inc. (c)................. 750
61 First Data Corp................... 2,038
14 H & R Block....................... 592
18 Ikon Office Solutions (c)......... 256
17 Interpublic Group Co., Inc........ 1,018
42 Laidlaw, Inc...................... 511
7 National Service Industries,
Inc............................. 345
21 Omnicom Group, Inc. (c)........... 1,057
37 Pitney Bowes, Inc................. 1,793
21 R.R. Donnelley & Sons Co.......... 957
11 Ryder Systems, Inc. (c)........... 344
34 Service Corp. International....... 1,478
62 WMX Technologies, Inc............. 2,176
----------
22,470
----------
Capital Goods (5.7%):
3 Aeroquip-Vickers, Inc............. 202
12 Black & Decker Corp............... 730
10 Case Corp......................... 472
50 Caterpillar, Inc.................. 2,634
5 Cincinnati Milacron, Inc.......... 131
16 Cooper Industries, Inc............ 901
6 Crane Co.......................... 293
6 Cummins Engine, Inc............... 288
35 Deere & Co........................ 1,842
31 Dover Corp........................ 1,051
61 Emerson Electric Co............... 3,686
12 Fluor Corp........................ 597
5 Foster Wheeler Corp............... 116
444 General Electric Co............... 40,386
7 General Signal Corp............... 252
15 Grainger W.W., Inc................ 739
7 Harnischfeger Industries, Inc..... 193
17 Honeywell, Inc.................... 1,452
33 Illinois Tool Works............... 2,203
22 Ingersoll Rand Co................. 953
11 Johnson Controls, Inc............. 650
1 Nacco Industries, Inc............. 144
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Capital Goods, continued:
11 Navistar International Corp....... $ 303
7 Owens-Corning Fiberglass Corp..... 287
10 Paccar, Inc....................... 537
15 Parker-Hannifin Corp.............. 589
25 PPG Industries, Inc............... 1,737
24 Sherwin-Williams Co............... 795
9 Snap-On, Inc...................... 322
12 Stanley Works..................... 503
20 Thermo Electron Corp. (b)......... 701
8 Timken Co......................... 240
78 Tyco International, Ltd........... 4,923
----------
70,852
----------
Consumer Durable (2.3%):
21 Autozone, Inc. (b) (c)............ 666
3 Briggs & Stratton Corp............ 103
89 Chrysler Corp..................... 4,996
11 Cooper Tire & Rubber Co........... 235
14 Dana Corp. (c).................... 737
11 Eaton Corp........................ 830
9 Echlin, Inc....................... 430
165 Ford Motor Co..................... 9,748
91 General Motors Corp............... 6,093
25 Genuine Parts Co. (c)............. 863
21 Goodyear Tire & Rubber Co. (b).... 1,354
16 ITT Industries, Inc............... 594
14 Maytag Corp....................... 682
10 Whirlpool Corp.................... 714
----------
28,045
----------
Consumer Non-Durable (11.1%):
7 Alberto Culver Co., Class B....... 205
10 American Greetings Corp., Class
A............................... 529
68 Anheuser Busch Co., Inc. (c)...... 3,192
79 Archer-Daniels-Midland Co......... 1,538
18 Avon Products, Inc................ 1,433
4 Ball Corp......................... 143
8 Bemis Co.......................... 307
40 Bestfoods......................... 2,321
10 Brown-Forman Corp., Class B....... 620
64 Campbell Soup Co.................. 3,395
15 Clorox Co......................... 1,387
338 Coca-Cola Co...................... 28,913
40 Colgate Palmolive Co.............. 3,531
66 ConAgra, Inc...................... 2,080
5 Coors Adolph Co., Class B......... 176
17 Crown Cork & Seal Co.............. 815
44 Eastman Kodak Co.................. 3,237
28 Fort James Corp................... 1,267
24 Fortune Brands Inc................ 914
11 Fruit of the Loom, Inc., Class A
(b)............................. 351
22 General Mills, Inc................ 1,495
</TABLE>
Continued
36
<PAGE> 39
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Non-Durable, continued:
153 Gillette Co....................... $ 8,648
50 H.J. Heinz Co..................... 2,833
21 Hershey Foods Corp................ 1,447
15 International Flavors &
Fragrances, Inc................. 653
6 Jostens, Inc...................... 135
57 Kellogg Co........................ 2,135
10 Liz Claiborne, Inc. (c)........... 545
22 Newell Co......................... 1,097
40 Nike, Inc., Class B (c)........... 1,927
203 PepsiCo, Inc...................... 8,358
333 Philip Morris Co., Inc............ 13,098
33 Pioneer Hi-Bred International,
Inc............................. 1,378
7 Polaroid Corp..................... 233
183 Proctor & Gamble Co............... 16,706
18 Quaker Oats Co.................... 1,012
14 Ralston Purina Group.............. 1,687
8 Reebok International Ltd. (b)..... 218
21 Rubbermaid, Inc................... 705
5 Russell Corp...................... 163
64 Sara Lee, Corp.................... 3,554
47 Seagram Co., Ltd.................. 1,929
2 Springs Industries, Inc., Class
A............................... 98
10 Supervalu, Inc.................... 427
49 Sysco Corp........................ 1,257
9 Tupperware Corp................... 249
87 Unilever N V...................... 6,888
27 UST, Inc.......................... 721
18 V.F. Corp......................... 925
16 Wrigley (Wm.) Junior Co. (c)...... 1,554
----------
138,429
----------
Consumer Services (4.0%):
13 Brunswick Corp.................... 331
97 CBS Corp. (c)..................... 3,068
116 Cendant Corp...................... 2,425
17 Clear Channel Communications
(b)(c).......................... 1,840
50 Comcast Corp., Class A............ 2,040
13 Dow Jones & Co., Inc.............. 740
38 Gannett, Inc...................... 2,736
14 Harrah's Entertainment, Inc.
(b)(c).......................... 320
18 Hasbro, Inc....................... 697
34 Hilton Hotels Corp................ 975
10 King World Productions, Inc.
(b)............................. 255
11 Knight-Ridder, Inc................ 631
35 Marriott International, Class A... 1,130
38 Mattel, Inc....................... 1,613
14 McGraw-Hill Co., Inc.............. 1,136
85 Media One Group, Inc. (b)(c)...... 3,721
7 Meredith Corp..................... 325
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Services, continued:
24 Mirage Resorts, Inc. (b)(c)....... $ 513
13 New York Times Co., Class A....... 1,066
69 Tele-Communications, Inc., Class A
(b)(c).......................... 2,648
78 Time Warner, Inc.................. 6,647
12 Times Mirror Co., Class A......... 758
18 Tribune Co........................ 1,224
49 Viacom, Inc., Class B (b)......... 2,850
93 Walt Disney Co.................... 9,734
----------
49,423
----------
Energy (7.2%):
13 Amerada Hess Corp................. 680
131 Amoco Corp........................ 5,437
8 Anadarko Petroleum Corp. (c)...... 546
12 Apache Corp....................... 389
9 Ashland, Inc...................... 469
44 Atlantic Richfield Co............. 3,456
22 Baker Hughes, Inc................. 777
24 Burlington Northern............... 1,029
89 Chevron Corp. (c)................. 7,390
24 Dresser Industries, Inc........... 1,065
333 Exxon Corp........................ 23,763
34 Halliburton Co.................... 1,537
5 Helmerich & Payne, Inc............ 119
7 Kerr McGee Corp................... 423
8 McDermott International, Inc...... 274
108 Mobil Corp........................ 8,245
50 Occidental Petroleum Corp......... 1,351
14 Oryx Energy Co. (b)............... 305
7 Pennzoil Co....................... 335
36 Phillips Petroleum Co............. 1,731
12 Rowan Cos., Inc................... 230
293 Royal Dutch Petroleum Co. (c)..... 16,043
68 Schlumberger Ltd. (c)............. 4,631
10 Sun, Inc.......................... 396
24 Tenneco, Inc...................... 908
75 Texaco, Inc....................... 4,466
34 Union Pacific Resources Group,
Inc............................. 600
34 Unocal Corp. (c).................. 1,201
40 USX-Marathon Group................ 1,358
8 Western Atlas, Inc. (b)........... 662
----------
89,816
----------
Financial Services (17.5%):
57 Allstate Corp..................... 5,239
63 American Express Co............... 7,220
33 American General Corp............. 2,354
96 American International Group,
Inc............................. 14,005
22 Aon Corp.......................... 1,533
47 Associates First Capital, Class
A............................... 3,642
96 Banc One Corp. (c)................ 5,332
</TABLE>
Continued
37
<PAGE> 40
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
52 Bank of New York Co., Inc. (c).... $ 3,150
93 BankAmerica Corp.................. 8,032
40 Bankboston Corp................... 2,248
13 Bankers Trust New York Corp....... 1,549
19 BB&T Corp......................... 1,253
16 Bear Stearns Co., Inc............. 882
8 Beneficial Corp................... 1,151
9 Capital One Financial Corp........ 1,118
36 Charles Schwab Corp............... 1,174
116 Chase Manhattan Corp.............. 8,748
24 Chubb Corp........................ 1,905
29 Cigna Corp........................ 2,017
22 Cincinnati Financial Corp......... 852
61 Citicorp.......................... 9,169
23 Comerica, Inc..................... 1,496
25 Conseco, Inc. (c)................. 1,155
14 Country Wide Credit............... 721
92 Federal Home Loan Mortgage Corp... 4,352
141 Federal National Mortgage Assoc... 8,590
33 Fifth Third Bancorp (c)........... 2,050
40 First Chicago NBD Corp............ 3,578
132 First Union Corp.................. 7,699
39 Fleet Financial Group, Inc........ 3,240
34 Franklin Resources, Inc........... 1,860
10 General Re Corp................... 2,656
8 Golden West Financial Corp........ 885
19 Green Tree Financial Corp......... 801
15 H.F. Ahmanson & Co................ 1,061
16 Hartford Financial Services
Group........................... 1,805
44 Household International, Inc.
(c)............................. 2,192
26 Huntington Bancshares............. 875
24 J.P. Morgan & Co., Inc............ 2,846
15 Jefferson Pilot Corp.............. 875
60 KeyCorp........................... 2,121
16 Lehman Brothers Holding, Inc...... 1,255
14 Lincoln National Corp............. 1,285
34 Marsh & McLennan Co............... 2,034
13 MBIA, Inc......................... 1,001
69 MBNA Corp......................... 2,262
34 Mellon Bank Corp.................. 2,397
18 Mercantile Bancorporation......... 886
47 Merrill Lynch & Co. (c)........... 4,351
16 MGIC Investment Corp. (c)......... 931
82 Morgan Stanley Dean Witter
Discover........................ 7,484
45 National City Corp................ 3,182
131 NationsBank Corp.................. 9,987
15 Northern Trust Corp............... 1,175
101 Norwest Corp...................... 3,787
42 PNC Bank Corp..................... 2,259
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
9 Progressive Corp., Ohio........... $ 1,335
13 Providian Financial............... 1,017
15 Republic N Y Corp................. 944
19 SAFECO Corp....................... 875
23 SLM Holding Corp.................. 1,142
32 St. Paul Co., Inc................. 1,361
22 State Street Corp................. 1,529
24 Summit Bancorp.................... 1,133
25 Sunamerica, Inc................... 1,446
29 SunTrust Banks, Inc............... 2,386
34 Synovus Financial Corp. (c)....... 810
20 Torchmark Corp.................... 915
9 TransAmerica Corp................. 1,040
156 Travelers Group, Inc.............. 9,439
102 U.S. Bancorp...................... 4,391
21 UNUM Corp......................... 1,150
28 Wachovia Corp..................... 2,355
51 Washington Mutual, Inc. (c)....... 2,234
12 Wells Fargo & Co.................. 4,272
----------
217,481
----------
Health Care (11.9%):
209 Abbott Labs....................... 8,537
20 Aetna............................. 1,543
9 Allergan, Inc..................... 419
12 Alza Corp. (b).................... 507
179 American Home Products Co......... 9,264
36 Amgen, Inc. (b)................... 2,372
8 Bard C.R., Inc.................... 295
8 Bausch & Lomb, Inc................ 402
38 Baxter International, Inc......... 2,026
18 Becton Dickinson & Co. (c)........ 1,368
16 Biomet, Inc....................... 521
27 Boston Scientific Corp. (b) (c)... 1,900
137 Bristol Myers Squibb Co........... 15,701
15 Cardinal Health, Inc.............. 1,398
91 Columbia/HCA Healthcare Corp.
(c)............................. 2,643
152 Eli Lilly & Co.................... 10,052
20 Guidant Corp...................... 1,423
59 HBO & Co.......................... 2,068
54 Healthsouth Corp. (b)............. 1,432
22 Humana, Inc....................... 693
184 Johnson & Johnson................. 13,538
10 Mallinckrodt Group, Inc........... 311
9 Manor Care, Inc................... 343
65 Medtronic, Inc.................... 4,166
164 Merck & Co., Inc.................. 21,871
6 Millipore Corp.................... 176
176 Pfizer, Inc....................... 19,137
69 Pharmacia & Upjohn, Inc........... 3,195
</TABLE>
Continued
38
<PAGE> 41
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care, continued:
100 Schering Plough Corp.............. $ 9,186
3 Shared Medical Systems Corp....... 194
12 St. Jude Medical Center, Inc.
(b)............................. 435
40 Tenet Healthcare Corp. (b)........ 1,239
9 U.S. Surgical, Corp............... 401
25 United Healthcare Corp............ 1,593
111 Warner Lambert Co................. 7,730
----------
148,079
----------
Multi-Industry (1.1%):
77 Allied Signal, Inc................ 3,419
32 Corning, Inc. (c)................. 1,095
5 FMC Corp.......................... 333
10 Harcourt General, Inc............. 613
16 Loews Corp........................ 1,396
56 Minnesota Mining & Manufacturing
Co.............................. 4,587
2 Octel Corp. (b)................... 43
22 Textron, Inc...................... 1,612
17 TRW, Inc.......................... 950
----------
14,048
----------
Raw Materials (3.0%):
31 Air Products & Chemical, Inc...... 1,231
31 Alcan Aluminum Ltd................ 848
24 Allegheny Teledyne, Inc........... 551
24 Aluminum Co. of America (c)....... 1,577
14 Armco, Inc. (b)................... 90
6 ASARCO, Inc....................... 133
15 Avery Dennison Corp............... 817
10 B. F. Goodrich Co................. 482
49 Barrick Gold Corp................. 946
31 Battle Mountain Gold Co........... 184
15 Bethlehem Steel Corp.............. 186
13 Cyprus Amax Minerals Co........... 174
32 Dow Chemical Co. (c).............. 3,077
155 Du Pont (EI) de Nemours & Co...... 11,541
11 Eastman Chemical Co............... 693
20 Engelhard Corp.................... 401
27 Freeport-McMoran Copper & Gold,
Class B......................... 416
9 Great Lakes Chemical Corp......... 352
14 Hercules, Inc..................... 594
20 Homestake Mining Co. (c).......... 207
23 Inco Ltd.......................... 309
80 Monsanto Co. (c).................. 4,490
20 Morton International, Inc......... 492
10 Nalco Chemical Co................. 335
21 Newmont Mining Corp............... 501
12 Nucor Corp........................ 556
16 Pall Corp......................... 329
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Raw Materials, continued:
9 Phelps Dodge Corp................. $ 505
33 Placer Dome, Inc.................. 383
21 Praxair, Inc...................... 979
9 Reynolds Metals Co................ 508
9 Rohm & Haas Co.................... 917
14 Sigma-Aldrich Corp................ 491
18 Union Carbide Corp................ 971
12 USX -- U.S. Steel Group, Inc...... 384
10 W.R. Grace & Co................... 168
13 Worthington Industries, Inc....... 190
----------
37,008
----------
Retail (6.0%):
1 Abercrombie & Fitch Co. (b)....... 44
34 Albertsons, Inc................... 1,774
39 American Stores Co................ 947
13 Circuit City Stores, Inc.......... 621
15 Consolidated Stores Co. (b)....... 529
29 Costco Companies, Inc. (c)........ 1,855
52 CVS Corp.......................... 2,030
22 Darden Restaurants, Inc........... 346
59 Dayton Hudson Corp................ 2,877
15 Dillard Department Stores, Inc.,
Class A......................... 636
28 Federated Department Stores, Inc.
(b)(c).......................... 1,511
55 Gap, Inc.......................... 3,412
8 Giant Food Inc., Class A.......... 359
5 Great Atlantic & Pacific Tea,
Inc............................. 175
100 Home Depot, Inc................... 8,298
35 J.C. Penney, Inc. (c)............. 2,503
64 K Mart, Inc. (b)(c)............... 1,233
34 Kroger Co. (b).................... 1,450
31 Limited, Inc...................... 1,024
4 Longs Drug Stores, Inc............ 121
47 Lowe's Co......................... 1,900
32 May Department Stores Co.......... 2,097
95 McDonald's Corp................... 6,567
5 Mercantile Stores Co., Inc........ 385
11 Nordstrom, Inc.................... 879
9 Pep Boys--Manny, Moe & Jack....... 166
32 Rite Aid Corp. (c)................ 1,218
53 Sears Roebuck & Co................ 3,260
14 Tandy Corp........................ 741
42 TJX Co., Inc...................... 1,023
38 Toys R Us, Inc. (b)............... 905
21 Tricon Global Restaurants (b)..... 672
18 Venator Group, Inc................ 346
307 Wal-Mart Stores, Inc. (c)......... 18,638
</TABLE>
Continued
39
<PAGE> 42
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
68 Walgreen Co....................... $ 2,807
17 Wendy's International, Inc........ 410
21 Winn Dixie Stores, Inc. (c)....... 1,051
----------
74,810
----------
Shelter (1.2%):
5 Armstrong World Industries,
Inc............................. 351
7 Boise Cascade Corp................ 232
7 Centex Corp....................... 274
13 Champion International Co......... 631
5 Fleetwood Enterprises, Inc........ 187
12 Georgia Pacific Corp.............. 733
41 International Paper Co............ 1,762
5 Kaufman & Broad Home Corp......... 169
77 Kimberly Clark Corp............... 3,514
15 Louisiana Pacific Corp............ 268
22 Masco Corp........................ 1,326
16 Mead Corp......................... 499
21 Owens-Illinois, Inc. (b).......... 943
3 Potlatch Corp..................... 146
6 Pulte Corp........................ 183
11 Sealed Air Corp. (b).............. 415
13 Stone Container Corp.............. 203
8 Temple Inland, Inc................ 430
10 Union Camp Corp................... 482
14 Westvaco Corp..................... 390
27 Weyerhaeuser Co................... 1,269
16 Williamette Industries, Inc....... 516
----------
14,923
----------
Technology (14.9%):
46 3Com Corp. (b).................... 1,406
10 Adobe Systems, Inc................ 410
19 Advanced Micro Devices, Inc.
(b)............................. 319
29 AMP, Inc.......................... 1,012
12 Andrew Corp. (b).................. 223
17 Apple Computer, Inc. (b) (c)...... 480
49 Applied Materials, Inc. (b)....... 1,433
26 Ascend Communications, Inc. (b)
(c)............................. 1,303
7 Auto Desk, Inc.................... 263
30 Bay Networks, Inc. (b)............ 978
137 Boeing Co......................... 6,103
21 Cabletron Systems, Inc. (b)....... 281
139 Cisco Systems, Inc. (b)........... 12,800
227 Compaq Computer Corp.............. 6,433
75 Computer Associates International,
Inc............................. 4,164
5 Data General Corp. (b)............ 74
89 Dell Computer Corp. (b)........... 8,272
16 DSC Communications Corp. (b)
(c)............................. 467
7 EG&G, Inc......................... 219
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
67 EMC Corp. (b) (c)................. $ 3,022
21 Gateway 2000, Inc. (b)............ 1,072
18 General Dynamics Corp............. 825
17 General Instrument Corp. (b)...... 472
10 Harris Corp....................... 465
142 Hewlett Packard Co................ 8,514
231 Intel Corp........................ 17,104
129 International Business Machines... 14,768
11 KLA-Tencor Corp. (b) (c).......... 313
26 Lockheed Martin Corp.............. 2,797
18 LSI Logic Corp. (b)............... 413
179 Lucent Technologies, Inc.......... 14,893
28 Micron Technology, Inc. (b) (c)... 704
335 Microsoft Corp. (b)............... 36,354
81 Motorola, Inc..................... 4,246
22 National Semiconductor Corp. (b)
(c)............................. 294
72 Northern Telecom, Ltd............. 4,083
9 Northrop Grumman Corp............. 931
49 Novell, Inc. (b).................. 626
134 Oracle Corp. (b) (c).............. 3,300
35 Parametric Technology Corp. (b)... 940
6 Perkin-Elmer Corp................. 382
12 Raychem Corp...................... 359
46 Raytheon Co., Class B (c)......... 2,732
28 Rockwell International Corp.
(c)............................. 1,323
11 Scientific-Atlanta, Inc........... 271
34 Seagate Technology, Inc. (b)...... 810
23 Silicon Graphics, Inc. (b)........ 281
51 Sun Microsystems, Inc. (b)........ 2,215
6 Tektronix, Inc.................... 229
24 Tellabs, Inc. (b) (c)............. 1,739
52 Texas Instruments, Inc............ 3,022
7 Thomas & Betts Corp............... 347
34 Unisys Corp....................... 962
31 United Technologies Corp.......... 2,888
44 Xerox Corp. (c)................... 4,515
----------
184,851
----------
Transportation (1.0%):
25 AMR Corp. (b)..................... 2,054
21 Burlington Northern Santa Fe
Corp............................ 2,060
29 CSX Corp.......................... 1,312
10 Delta Air Lines, Inc.............. 1,280
20 FDX Corp. (b)..................... 1,279
52 Norfolk Southern Corp............. 1,564
30 Southwest Airlines Co............. 885
33 Union Pacific Corp. (c)........... 1,475
12 US Air Group...................... 981
----------
12,890
----------
</TABLE>
Continued
40
<PAGE> 43
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities (9.6%):
77 Airtouch Communications, Inc.
(b)............................. $ 4,508
26 Alltel Corp. (c).................. 1,213
19 Ameren Corp....................... 744
26 American Electric Power, Inc...... 1,168
151 Ameritech Corp.................... 6,798
221 AT&T Corp. (c).................... 12,627
20 Baltimore Gas & Electric Co....... 624
213 Bell Atlantic Corp................ 9,727
136 BellSouth Corp.................... 9,098
21 Carolina Power & Light Co......... 925
29 Central & South West Corp......... 778
21 Cinergy Corp...................... 744
14 Coastal Corp...................... 981
12 Columbia Gas System, Inc.......... 645
32 Consolidated Edison, Inc.......... 1,481
13 Consolidated Natural Gas Co....... 744
20 Detroit Edison Co................. 805
24 Dominion Resources, Inc. of
Virginia........................ 978
49 Duke Power Co., Inc............... 2,893
2 Eastern Enterprises............... 92
49 Edison International.............. 1,458
45 Enron Corp. (c)................... 2,424
32 Entergy Corp...................... 913
31 First Energy Corp................. 964
25 Florida Power & Light Group, Inc.
(c)............................. 1,598
22 Frontier Corp..................... 700
16 General Public Utilities Corp..... 608
132 GTE Corp.......................... 7,323
38 Houston Industries................ 1,173
99 MCI Communications Corp........... 5,735
33 Nextel Communications, Inc., Class
A (b)........................... 830
20 Niagara Mohawk Power Corp. (b).... 294
7 NICOR, Inc........................ 297
19 Northern States Power Co.......... 549
3 Oneok, Inc........................ 133
40 Pacificorp........................ 897
31 Peco Energy Corp. (c)............. 891
4 Peoples Energy Corp............... 173
52 PG & E Corp. (c).................. 1,639
22 PP&L Resources, Inc............... 497
33 Public Service Enterprise Group... 1,139
252 SBC Communications, Inc........... 10,080
18 Sempra Energy (b)................. 492
15 Sonat, Inc........................ 579
92 Southern Co....................... 2,547
59 Sprint Corp....................... 4,166
33 Texas Utilities (c)............... 1,364
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities, continued:
56 The Williams Companies, Inc.
(c)............................. $ 1,896
29 Unicom Corp....................... 1,028
71 US West, Inc...................... 3,321
139 WorldCom, Inc. (b) (c)............ 6,717
----------
119,998
----------
Total Common Stocks 1,223,123
----------
U.S. TREASURY OBLIGATIONS (0.1%):
U.S. Treasury Bills (0.1%):
$ 220 7/16/98 (d)....................... 220
885 7/23/98 (d)....................... 882
15 8/20/98 (d)....................... 15
520 8/27/98 (d)....................... 516
----------
Total U.S. Treasury Obligations 1,633
----------
REPURCHASE AGREEMENTS (0.8%):
9,880 Prudential Securities, 6.10%,
7/1/98 (Collateralized by $9,880
various U.S. Government
Securities, 6.10% - 6.25%,
4/30/01 - 6/26/03, market value
$9,976)......................... 9,880
----------
Total Repurchase Agreements 9,880
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL (9.2%):
Master Notes (1.7%):
4,384 Bear Stearns Mortgage Capital,
6.77%, 10/9/98*................. 4,384
3,653 Danaher Corp., 6.68%, 10/9/98*.... 3,653
2,192 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*................. 2,192
4,969 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*................. 4,969
1,315 NationsBanc Capital Markets,
6.70%, 7/1/98*.................. 1,315
4,384 Williamette Industries, Inc.,
5.85%, 7/23/98*................. 4,384
----------
20,897
----------
Put Bonds (2.6%):
3,653 Associates Corp. N.A., 5.79%,
1/4/99*......................... 3,651
2,923 Branch Banking & Trust, 5.92%,
12/10/99*....................... 2,923
1,461 Citicorp, 5.94%, 8/3/98*.......... 1,461
3,361 Evangelical Lutheran, 5.74%,
4/28/00*........................ 3,355
4,384 GMAC, 5.85%, 11/10/99*............ 4,391
3,653 Goldman Sachs, 6.06%, 11/21/00*... 3,653
3,653 Greenwich Capital, 6.11%,
12/13/99*....................... 3,653
3,653 Lehman Brothers Holdings, 5.85%,
8/18/99*........................ 3,653
</TABLE>
Continued
41
<PAGE> 44
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Put Bonds, continued:
$1,461 Merrill Lynch, 6.07%, 11/13/98*... $ 1,461
3,653 PNC Bank, 5.74%, 10/2/98*......... 3,651
----------
31,852
----------
Repurchase Agreements (4.9%):
14,613 Donaldson, Lufkin & Jenrette,
6.65%, 7/1/98 (Collateralized by
$14,940 various Corporate and
Government Securities,
2.85% - 17.25%,
10/15/02 - 4/15/35, market value
$15,175)........................ 14,613
7,307 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $7,788
various Corporate Bonds, 0.00%,
7/7/98 - 9/18/98, market value
$7,759)......................... 7,307
37,556 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $38,496
various Corporate Bonds,
0.00% - 10.13%,
9/15/99, - 10/17/96, market
value $40,293).................. 37,556
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ---------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$ 25 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $27 Media One
Group Bonds, 0.00%, 10/5/98,
market value $27)............... $ 25
1,169 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $7,318
various Government Securities,
0.00% - 10.00%,
12/1/18 - 5/1/24, market value
$1,203)......................... 1,169
1,461 Paine Webber, 6.40%, 7/1/98
(Collateralized by $1,459
various Corporate Bonds,
4.00% - 9.75%, 7/15/98-12/31/49,
market value $1,534)............ 1,461
----------
62,131
----------
Total Short-Term Securities Held as
Collateral 114,880
----------
Total (Cost $914,982) (a) $1,358,421
----------
----------
</TABLE>
- ------------
Percentages indicated are based on net assets of $1,244,778.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $828. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $463,433
Unrealized depreciation..................................... (20,822)
--------
Net unrealized appreciation................................. $442,611
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
(d) Serves as collateral for futures contracts.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- --------- ------------- --------- -------
<C> <S> <C> <C>
Long S&P 500, September 1998
74 Futures $20,861 $21,146
</TABLE>
* The interest rate for this variable rate note, which will change periodically,
is based upon a index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
42
<PAGE> 45
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Value Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMERCIAL PAPER (1.7%):
Financial Services (1.7%):
$12,800 Merrill Lynch, 5.59%, 9/19/98........ $ 12,646
--------
Total Commercial Paper 12,646
--------
COMMON STOCKS (95.4%):
Business Equipment & Services (1.3%):
67 Miller (Herman), Inc................. 1,617
123 Service Corp. International.......... 5,256
52 U.S.A. Waste Services, Inc. (b)(c)... 2,553
--------
9,426
--------
Capital Goods (7.0%):
43 Cooper Industries, Inc............... 2,368
89 Emerson Electric Co.................. 5,356
243 General Electric Co.................. 22,112
78 Harsco Corp.......................... 3,569
39 Hubbell, Inc., Class B............... 1,640
62 Johnson Controls, Inc................ 3,521
30 Medusa Corp.......................... 1,883
120 Teleflex, Inc........................ 4,560
107 Tyco International Ltd............... 6,747
--------
51,756
--------
Consumer Durable (1.3%):
121 Autozone, Inc. (b)(c)................ 3,874
104 Chrysler Corp........................ 5,852
--------
9,726
--------
Consumer Non-Durable (8.3%):
134 Coca-Cola Co......................... 11,474
120 Conagra, Inc......................... 3,790
69 Interstate Bakeries Corp.(c)......... 2,277
120 Intimate Brands, Inc................. 3,302
47 Lancaster Colony Corp................ 1,788
90 McCormick & Co., Inc................. 3,225
114 Newell Cos., Inc..................... 5,689
208 Philip Morris Co., Inc............... 8,186
48 Proctor & Gamble Co.................. 4,407
83 Quaker Oats Co....................... 4,560
72 Revlon, Inc., Class A (b)(c)......... 3,673
104 Rubbermaid, Inc...................... 3,458
90 Sara Lee Corp........................ 5,023
--------
60,852
--------
Consumer Services (4.7%):
123 Belo (A.H.) Corp., Series A.......... 3,003
115 Hasbro, Inc.......................... 4,505
143 Hilton Hotels Corp................... 4,084
64 MGM Grand, Inc. (b) (c).............. 2,014
110 Tele-Communications, Inc., Class A
(b)(c)............................. 4,211
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Services, continued:
94 Time Warner, Inc. (c)................ $ 8,065
83 Viacom, Inc., Class B (b)............ 4,841
41 Walt Disney Co....................... 4,308
--------
35,031
--------
Energy (6.9%):
58 Ashland, Inc......................... 2,984
52 Devon Energy Corp. (c)............... 1,803
47 Dresser Industries, Inc. (c)......... 2,080
222 Exxon Corp........................... 15,845
151 Royal Dutch Petroleum Co. (c)........ 8,259
131 Texaco, Inc.......................... 7,813
79 Tosco Corp. (c)...................... 2,324
48 Transocean Offshore, Inc............. 2,114
81 Ultramar Diamond Shamrock Corp....... 2,541
158 USX-Marathon Group................... 5,408
--------
51,171
--------
Financial Services (16.7%):
55 Allstate Corp........................ 5,008
45 American International Group, Inc.... 6,526
29 Associates First Capital, Class A.... 2,260
53 Bear Stearns Co., Inc................ 2,986
117 Charter One Financial, Inc........... 3,925
116 Chase Manhattan Corp................. 8,773
63 Cigna Corp........................... 4,326
53 Equitable Co., Inc................... 3,934
130 Federal National Mortgage Assoc...... 7,916
113 First Tennessee National Corp........ 3,560
86 First Union Corp..................... 5,021
51 Hartford Financial Services Group.... 5,833
102 MBNA Corp............................ 3,356
69 Mercantile Bankshares Corp........... 2,409
98 Morgan Stanley Dean Witter
Discover........................... 8,918
79 National City Corp................... 5,623
175 NationsBank Corp..................... 13,418
31 PMI Group, Inc....................... 2,238
128 Southtrust Corp...................... 5,566
59 State Street Corp.................... 4,087
187 Travelers Group, Inc................. 11,307
17 Wells Fargo & Co..................... 6,384
--------
123,374
--------
Health Care (10.5%):
162 American Home Products Corp.......... 8,389
58 Bausch & Lomb, Inc................... 2,907
79 Baxter International, Inc............ 4,240
50 Boston Scientific Corp. (b)(c)....... 3,553
115 Bristol Myers Squibb Co.............. 13,159
36 Cardinal Health, Inc................. 3,394
90 IDEXX Laboratories, Inc. (b)......... 2,229
42 Johnson & Johnson.................... 3,112
</TABLE>
Continued
43
<PAGE> 46
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Value Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care, continued:
98 Medtronic, Inc....................... $ 6,248
57 Merck & Co., Inc..................... 7,624
38 Pfizer, Inc.......................... 4,152
77 Schering Plough Corp................. 7,018
31 Sofamor Danek Group, Inc. (b)........ 2,649
130 Warner-Lambert Co.................... 8,991
--------
77,665
--------
Raw Materials (3.7%):
58 Betzdearborn, Inc.................... 2,430
90 Crompton & Knowles Corp.............. 2,254
89 Du Pont (EI) de Nemours & Co......... 6,627
106 Ferro Corp........................... 2,695
118 Morton International, Inc............ 2,943
81 Nalco Chemical Co.................... 2,831
77 Olin Corp............................ 3,197
88 Praxair, Inc......................... 4,105
--------
27,082
--------
Retail (6.5%):
113 Dayton Hudson Corp................... 5,461
175 Just For Feet, Inc. (b)(c)........... 4,988
100 Kohl's Corp. (b)..................... 5,167
143 Kroger Co. (b)....................... 6,114
204 Officemax, Inc. (b).................. 3,371
60 Outback Steakhouse, Inc. (b)(c)...... 2,340
77 Safeway, Inc. (b).................... 3,141
226 Wal-Mart Stores, Inc. (c)............ 13,705
118 Williams Sonoma, Inc. (b)............ 3,744
--------
48,031
--------
Shelter (2.6%):
30 Armstrong World Industries, Inc...... 2,035
112 Kimberly Clark Corp.................. 5,156
138 Leggett & Platt, Inc................. 3,440
81 Masco Corp........................... 4,888
88 Pentair, Inc......................... 3,736
--------
19,255
--------
Technology (15.5%):
88 American Power Conversion (b)........ 2,643
63 Applied Materials, Inc. (b).......... 1,850
87 BMC Software, Inc. (b)............... 4,508
106 Cadence Design Systems, Inc.
(b)(c)............................. 3,309
145 Cisco Systems, Inc. (b).............. 13,317
140 Dell Computer Corp. (b).............. 12,984
62 Gateway 2000, Inc. (b)............... 3,119
122 Hewlett Packard Co................... 7,317
169 Intel Corp........................... 12,535
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
92 International Business Machines...... $ 10,609
38 Lockheed Martin Corp................. 3,981
92 LSI Logic Corp. (b).................. 2,117
99 Lucent Technologies, Inc............. 8,269
79 Maxim Integrated Products, Inc.
(b)................................ 2,487
230 Microsoft Corp. (b).................. 24,958
--------
114,003
--------
Utilities (9.5%):
88 AES Corp. (b)........................ 4,641
106 Baltimore Gas & Electric Co.......... 3,296
93 Century Telephone Enterprises........ 4,262
98 Cinergy Corp......................... 3,437
82 El Paso Natural Gas.................. 3,137
135 Energy East Corp..................... 5,607
118 General Public Utilities Corp........ 4,462
147 GTE Corp............................. 8,155
62 L G & E Energy Corp.................. 1,678
61 MCN Corp. (c)........................ 1,515
193 Qwest Communications International
(b)................................ 6,743
248 SBC Communications, Inc.............. 9,915
120 Sprint Corp.......................... 8,431
114 Williams Co. (c)..................... 3,861
165 Worldcom, Inc. (b)(c)................ 7,983
--------
70,380
--------
Total Common Stocks 704,495
--------
U.S. TREASURY OBLIGATIONS (0.1%):
U.S. Treasury Bills (0.1%):
$ 485 8/20/98 (d).......................... 482
55 9/24/98 (d).......................... 54
--------
Total U.S. Treasury Obligations 536
--------
REPURCHASE AGREEMENTS (2.7%):
19,589 Prudential Securities, 6.10%, 7/1/98
(Collateralized by $14,752 U.S.
Government Securities, 6.10%-8.75%,
6/26/03-5/15/17, market value
$19,981)........................... 19,589
--------
Total Repurchase Agreements 19,589
--------
SHORT-TERM SECURITIES HELD AS COLLATERAL (6.7%):
Master Notes (1.2%):
1,875 Bear Stearns Mortgage Capital, 6.77%,
10/9/98*........................... 1,875
1,563 Danaher Corp., 6.68%, 10/9/98*....... 1,563
938 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*.................... 938
</TABLE>
Continued
44
<PAGE> 47
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Value Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Master Notes, continued:
$ 2,125 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*.................... $ 2,124
563 NationsBanc Capital Markets, 6.70%,
7/1/98*............................ 563
1,875 Williamette Industries, Inc., 5.85%,
7/23/98*........................... 1,875
--------
8,938
--------
Put Bonds (1.8%):
1,563 Associates Corp. N.A., 5.79%,
1/4/99*............................ 1,562
1,250 Branch Banking & Trust, 5.92%,
12/10/99*.......................... 1,250
625 Citicorp, 5.94%, 8/3/98*............. 625
1,438 Evangelical Lutheran, 5.74%,
4/28/00*........................... 1,435
1,875 GMAC, 5.85%, 11/10/99*............... 1,877
1,563 Goldman Sachs, 6.06%, 11/21/00*...... 1,563
1,563 Greenwich Capital, 6.11%,
12/13/99*.......................... 1,563
1,563 Lehman Brothers Holdings, 5.85%,
8/18/99*........................... 1,563
625 Merrill Lynch, 6.07%, 11/13/98*...... 625
1,563 PNC Bank, 5.74%, 10/2/98*............ 1,562
--------
13,625
--------
Repurchase Agreements (3.7%):
6,251 Donaldson, Lufkin & Jenrette, 6.65%,
7/1/98 (Collateralized by $6,391
various Corporate and Government
Securities, 2.85% - 17.25%,
10/15/02 - 4/15/35, market value
$6,491)............................ 6,251
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$ 3,125 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $3,331 various
Corporate Bonds, 0.00%, 7/7/98 -
9/18/98, market value $3,319)...... $ 3,125
16,065 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $16,466 various
Corporate Bonds, 0.00% - 10.13%,
9/15/99-10/17/96, market value
$17,235)........................... 16,065
11 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $11 Media One
Group Bonds, 0.00%, 10/5/98, market
value $11)......................... 11
500 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $3,130 various
Government Securities,
0.00% - 10.00%, 12/1/18-5/1/24,
market value $515)................. 500
625 Paine Webber, 6.40%, 7/1/98
(Collateralized by $624 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$656).............................. 625
--------
26,577
--------
Total Short-Term Securities Held as Collateral 49,140
--------
Total (Cost $617,512) (a) $786,406
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $737,575.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $5. Cost for federal income tax purposes differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $176,101
Unrealized depreciation..................................... (7,212)
--------
Net unrealized appreciation................................. $168,889
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
(d) Serves as collateral for futures contracts.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- --------- ------------- --------- -------
<C> <S> <C> <C>
50 Long S&P 500, September 1998 Futures $13,835 $14,287
</TABLE>
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
45
<PAGE> 48
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Large Company Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (94.7%):
Business Equipment & Services (0.5%):
111 Browning-Ferris Industries, Inc.
(c)............................... $ 3,860
--------
Capital Goods (2.9%):
75 Case Corp.(c)....................... 3,619
90 Cooper Industries, Inc.............. 4,944
60 Emerson Electric Co................. 3,619
100 Harsco Corp......................... 4,581
100 Sherwin-Williams Co................. 3,313
100 Trinity Industries, Inc............. 4,150
--------
24,226
--------
Consumer Durable (3.6%):
200 Autozone, Inc. (b) (c).............. 6,388
300 Chrysler Corp....................... 16,912
100 General Motors Corp................. 6,681
--------
29,981
--------
Consumer Non-Durable (6.3%):
200 American Greetings Corp., Class A 10,188
205 Archer-Daniels-Midland Co........... 3,972
50 Eastman Kodak Co.................... 3,653
100 Kellogg Co.......................... 3,756
200 Nike, Inc. (c)...................... 9,738
297 RJR Nabisco Holdings Corp........... 7,063
150 Rubbermaid, Inc. (c)................ 4,978
200 Supervalu, Inc...................... 8,875
--------
52,223
--------
Consumer Services (4.4%):
200 CBS Corp. (c)....................... 6,350
100 Hasbro, Inc......................... 3,931
100 Hilton Hotels Corp.................. 2,850
135 Time Warner, Inc.................... 11,534
195 Viacom, Inc., Class A (b) (c)....... 11,408
--------
36,073
--------
Energy (14.0%):
100 Amoco Corp.......................... 4,163
100 Ashland, Inc........................ 5,163
50 Burlington Resources, Inc........... 2,153
50 Chevron Corp. (c)................... 4,153
100 Dresser Industries, Inc............. 4,406
500 Exxon Corp.......................... 35,656
86 Mobil Corp.......................... 6,620
400 Royal Dutch Petroleum Co. (c)....... 21,925
250 Texaco, Inc......................... 14,922
100 Tosco Corp. (c)..................... 2,938
100 Ultramar Diamond Shamrock Corp...... 3,156
300 USX-Marathon Group.................. 10,294
--------
115,549
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (27.7%):
170 Allstate Corp....................... $ 15,566
200 BankAmerica Corp.................... 17,287
200 Charter One Financial, Inc.......... 6,738
180 Chase Manhattan Corp................ 13,590
150 Cigna Corp.......................... 10,350
100 Citicorp............................ 14,925
150 Federal National Mortgage Assoc..... 9,113
115 First Chicago Corp.................. 10,192
130 First Union Corp. (c)............... 7,573
130 Hartford Financial Services Group... 14,869
120 Household International (c) 5,970
207 KeyCorp............................. 7,389
110 Lincoln National Corp............... 10,051
100 Morgan Stanley Dean Witter
Discover.......................... 9,138
300 NationsBank Corp.................... 22,949
100 Southtrust Corp..................... 4,350
100 State Street Corp................... 6,950
40 TransAmerica Corp................... 4,605
375 Travelers Group, Inc. (c)........... 22,733
40 Wells Fargo & Co.................... 14,760
--------
229,098
--------
Health Care (2.1%):
200 American Home Products Corp......... 10,350
50 Bausch & Lomb, Inc.................. 2,506
100 Biomet, Inc......................... 3,306
50 Tenet Healthcare Corp. (b).......... 1,563
--------
17,725
--------
Multi-Industry (0.7%):
70 Allied Signal, Inc.................. 3,106
30 Loews Corp.......................... 2,614
--------
5,720
--------
Raw Materials (2.0%):
65 Aluminum Co. of America (c)......... 4,258
50 B. F. Goodrich Co................... 2,481
150 Nalco Chemical Co................... 5,269
50 Olin Corp........................... 2,084
50 Praxair, Inc........................ 2,341
--------
16,433
--------
</TABLE>
Continued
46
<PAGE> 49
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Large Company Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail (3.0%):
125 American Stores Co.................. $ 3,023
95 McDonald's Corp..................... 6,555
250 Sears Roebuck & Co.................. 15,266
--------
24,844
--------
Shelter (2.5%):
25 Armstrong World Industries, Inc..... 1,684
100 International Paper Co. (c)......... 4,300
150 Masco Corp.......................... 9,075
127 Weyerhaeuser Co..................... 5,866
--------
20,925
--------
Technology (7.8%):
119 Boeing Co........................... 5,298
250 Cypress Semiconductor Corp. (b)..... 2,078
300 International Business Machines
(c)............................... 34,444
90 Litton Industries, Inc.(b) (c)...... 5,328
70 Lockheed Martin Corp................ 7,411
100 LSI Logic Corp. (b)................. 2,306
100 Motorola, Inc....................... 5,256
40 Rockwell International Corp. (c).... 1,923
--------
64,044
--------
Transportation (0.4%):
30 Burlington Northern Santa Fe
Corp.............................. 2,946
--------
Utilities (16.8%):
75 Allegheny Energy Inc................ 2,259
100 Ameritech Corp...................... 4,488
150 AT&T Corp. (c)...................... 8,569
250 Baltimore Gas & Electric Co......... 7,766
200 BellSouth Corp...................... 13,424
150 Cinergy Corp........................ 5,250
50 CMS Energy Corp..................... 2,200
140 Edison International................ 4,139
171 El Paso Natural Gas (c)............. 6,555
100 Entergy Corp........................ 2,875
50 Florida Power & Light Group, Inc.... 3,150
150 General Public Utilities Corp....... 5,672
82 GTE Corp............................ 4,561
50 L G & E Energy Corp................. 1,353
200 MCI Communications Corp............. 11,625
200 Public Service Enterprises, Inc..... 6,888
117 Qwest Communications International
(b)............................... 4,067
224 SBC Communications, Inc. (c)........ 8,960
87 Southern Co. (c).................... 2,409
150 Sprint Corp......................... 10,575
50 Texas Utilities Corp. (c)........... 2,081
216 Williams Co., Inc. (c).............. 7,305
250 Worldcom, Inc.(b) (c)............... 12,109
--------
138,280
--------
Total Common Stocks 781,927
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
REPURCHASE AGREEMENTS (4.7%):
$38,915 Prudential Securities, 6.10%,
7/1/98 (Collateralized by $38,915
various U.S. Government Agency
Securities, 0.00% - 6.10%,
12/31/00 - 11/24/14, market value
$39,694).......................... $ 38,915
--------
Total Repurchase Agreements 38,915
--------
SHORT-TERM SECURITIES HELD AS COLLATERAL (10.1%):
Master Notes (1.8%):
3,172 Bear Stearns Mortgage Capital,
6.77%, 10/9/98*................... 3,172
2,643 Danaher Corp., 6.68%, 10/9/98*...... 2,643
1,586 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*................... 1,586
3,596 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*................... 3,596
952 NationsBanc Capital Markets, 6.70%,
7/1/98*........................... 952
3,172 Williamette Industries, Inc., 5.85%,
7/23/98*.......................... 3,172
--------
15,121
--------
Put Bonds (2.8%):
2,643 Associates Corp. N.A., 5.79%,
1/4/99*........................... 2,642
2,115 Branch Banking & Trust, 5.92%,
12/10/99*......................... 2,115
1,057 Citicorp, 5.94%, 8/3/98*............ 1,057
2,432 Evangelical Lutheran, 5.74%,
4/28/00*.......................... 2,428
3,172 GMAC, 5.85%, 11/10/99*.............. 3,178
2,643 Goldman Sachs, 6.06%, 11/21/00*..... 2,643
2,643 Greenwich Capital, 6.11%,
12/13/99*......................... 2,643
2,643 Lehman Brothers Holdings, 5.85%,
8/18/99*.......................... 2,644
1,057 Merrill Lynch, 6.07%, 11/13/98*..... 1,057
2,643 PNC Bank, 5.74%, 10/2/98*........... 2,642
--------
23,049
--------
Repurchase Agreements (5.5%):
10,574 Donaldson, Lufkin & Jenrette, 6.65%,
7/1/98 (Collateralized by $10,810
various Corporate and Government
Securities, 2.85% - 17.25%,
10/15/02 - 4/15/35, market value
$10,981).......................... 10,574
5,287 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $5,635 various
Corporate Bonds, 0.00%, 7/7/98 -
9/18/98, market value $5,615)..... 5,287
27,174 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $27,855 various
Corporate Bonds, 0.00% - 10.13%,
9/15/99 - 10/17/96, market value
$29,156).......................... 27,174
</TABLE>
Continued
47
<PAGE> 50
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Large Company Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$ 18 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $19 Media One
Group Bonds, 0.00%, 10/5/98,
market value $19)................. $ 18
846 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $5,296 various
Government Securities, 0.00% -
10.00%, 12/1/18 - 5/1/24, market
value $871)....................... 846
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$1,057 Paine Webber, 6.40%, 7/1/98
(Collateralized by $1,055 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$1,110)........................... $ 1,057
--------
44,956
--------
Total Short-Term Securities Held as Collateral 83,126
--------
Total (Cost $708,580) (a) $903,968
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $825,502.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $1,248. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $202,188
Unrealized depreciation..................................... (8,048)
--------
Net unrealized appreciation................................. $194,140
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
48
<PAGE> 51
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Disciplined Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (98.1%):
Business Equipment & Services (4.6%):
65 A.C. Nielson Corp. (b)............... $ 1,641
24 America Online, Inc. (b)............. 2,544
85 Jacobs Engineering Group, Inc. (b)... 2,724
37 Kelly Services Inc., Class A......... 1,309
222 Office Depot, Inc. (b)(c)............ 7,006
48 Ogden Corp........................... 1,329
64 Olsten Corp.......................... 716
40 Pittston Co.......................... 1,475
90 Sensormatic Electronics Corp. (b).... 1,260
53 Service Corp. International.......... 2,272
60 Sotheby's Holdings, Class A.......... 1,343
20 Standard Register Co................. 708
126 Stewart Enterprises Corp., Class A... 3,355
70 Sungard Data Systems, Inc. (b)(c).... 2,686
36 U.S.A. Waste Services, Inc. (b)(c)... 1,778
--------
32,146
--------
Capital Goods (6.4%):
128 Harsco Corp.......................... 5,855
153 Hubbell, Inc., Class B............... 6,384
33 Johnson Controls, Inc................ 1,883
36 Kennametal, Inc...................... 1,503
82 Mark IV Industries, Inc.............. 1,763
78 Medusa Corp.......................... 4,895
139 Molex, Inc........................... 3,470
87 Southdown, Inc....................... 6,210
84 Teleflex, Inc........................ 3,200
116 Trinity Industries, Inc.............. 4,814
111 United States Filter Corp. (b)(c).... 3,115
33 York International Corp.............. 1,438
--------
44,530
--------
Consumer Durable (0.2%):
42 Autozone, Inc. (b)(c)................ 1,341
--------
Consumer Non-Durable (4.1%):
80 First Brands Corp.................... 2,050
82 Hormel Foods Corp. (c)............... 2,834
93 IBP, Inc............................. 1,686
98 McCormick & Co., Inc................. 3,500
73 Newell Co............................ 3,636
346 Tyson Foods, Inc., Class A........... 7,504
60 U.S. Foodservice (b)................. 2,104
46 Universal Corp....................... 1,719
75 Warnaco Group, Inc., Class A......... 3,183
--------
28,216
--------
Consumer Services (2.8%):
43 Banta Corp........................... 1,328
256 Belo (A.H.) Corp., Series A.......... 6,244
36 Chris-Craft Industries, Inc. (b)..... 1,969
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Services, continued:
65 Hasbro, Inc.......................... $ 2,555
20 Houghton Mifflin Co.................. 635
51 Lee Enterprises, Inc................. 1,562
35 MGM Grand, Inc. (b) (c).............. 1,105
95 Promus Hotel Corp. (b)............... 3,658
14 Scholastic Corp. (b)................. 558
--------
19,614
--------
Energy (7.2%):
36 Ashland, Inc......................... 1,859
148 BJ Services Co. (b)(c)............... 4,301
145 ENSCO International, Inc............. 2,519
53 Murphy Oil Corp. (c)................. 2,686
100 Nabors Industries, Inc. (b).......... 1,981
63 Noble Affiliates, Inc................ 2,394
175 Noble Drilling Corp. (b)............. 4,211
102 Pioneer Natural Resources Co......... 2,435
60 Tidewater, Inc....................... 1,980
293 Tosco Corp. (c)...................... 8,607
194 Transocean Offshore, Inc............. 8,633
172 Ultramar Diamond Shamrock Corp....... 5,429
93 Valero Energy Corp................... 3,103
--------
50,138
--------
Financial Services (23.5%):
126 A.G. Edwards, Inc.................... 5,379
105 Ambac Financial Group, Inc........... 6,143
40 American Financial Group, Inc........ 1,733
80 Associated Banc-Corp................. 3,010
195 Bear Stearns Co., Inc................ 11,090
29 Capital One Financial Corp........... 3,601
234 Charter One Financial, Inc........... 7,886
21 CMAC Investment Corp................. 1,292
134 Crestar Financial Corp............... 7,311
188 Dime Bancorp, Inc.................... 5,628
51 Finova Group, Inc.................... 2,888
225 First Security Corp.................. 4,816
47 First Virginia Banks, Inc............ 2,398
170 Firstar Corp......................... 6,460
50 GATX Corp............................ 2,194
112 Hibernia Corp., Class A.............. 2,261
18 HSB Group, Inc....................... 987
187 Marshall & Ilsley Corp............... 9,549
45 MBNA Corp............................ 1,485
103 Mercantile Bankshares Corp........... 3,568
23 Northern Trust Corp.................. 1,754
137 Old Kent Financial Corp.............. 4,910
217 Old Republic International Corp...... 6,346
86 Pacific Century Financial Corp....... 2,064
201 Paine Webber Group, Inc.............. 8,596
54 PMI Group, Inc....................... 3,962
</TABLE>
Continued
49
<PAGE> 52
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Disciplined Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
182 Provident Co., Inc................... $ 6,279
185 Regions Financial Corp............... 7,597
116 Reliastar Financial Corp............. 5,568
249 Southtrust Corp...................... 10,847
30 State Street Corp.................... 2,085
123 TCF Financial Corp................... 3,629
36 Transatlantic Holdings, Inc.......... 2,814
112 Union Planters Corp.................. 6,587
--------
162,717
--------
Health Care (4.4%):
87 Allegiance Corp...................... 4,433
21 ATL Ultrasound, Inc. (b)............. 958
55 Bergen Brunswig Corp., Class A....... 2,551
147 Beverly Enterprises, Inc. (b)(c)..... 2,030
200 Chiron Corp. (b)..................... 3,138
95 Genzyme Corp. (b) (c)................ 2,428
80 HBO & Co............................. 2,820
112 IDEXX Laboratories, Inc. (b)......... 2,786
43 NovaCare, Inc. (b)................... 505
57 PacifiCare Health Systems, Inc.,
Class B (b)........................ 5,038
22 Sofamor Danek Group, Inc. (b)........ 1,904
46 Watson Pharmaceuticals, Inc. (b)..... 2,148
--------
30,739
--------
Multi-Industry (0.2%):
61 Gencorp, Inc......................... 1,540
--------
Raw Materials (5.5%):
47 A. Schulman, Inc..................... 919
96 Airgas, Inc. (b)(c).................. 1,380
35 AK Steel Holding Corp................ 626
28 Albemarle Corp....................... 618
28 Aluminum Co. of America (c).......... 1,820
43 B. F. Goodrich Co.................... 2,134
109 Cabot Corp........................... 3,522
12 Cleveland Cliffs, Inc................ 644
38 Crompton & Knowles Corp.............. 957
33 Dexter Corp.......................... 1,050
23 Fuller (H. B.) Co.................... 1,247
70 Hanna (M.A.) Co...................... 1,286
164 IMC Global, Inc...................... 4,940
83 Lubrizol Corp........................ 2,511
33 Minerals Technologies, Inc........... 1,679
102 Olin Corp............................ 4,252
22 Praxair, Inc......................... 1,030
200 RPM, Inc............................. 3,400
37 Sigma-Aldrich Corp................... 1,300
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Raw Materials, continued:
53 Wellman, Inc......................... $ 1,202
68 Witco Corp........................... 1,989
--------
38,506
--------
Retail (6.3%):
55 BJ's Wholesale Club, Inc. (b)........ 2,234
32 Bob Evans Farms, Inc................. 678
88 Borders Group, Inc. (b).............. 3,256
98 Brinker International, Inc. (b)...... 1,887
43 Buffets, Inc. (b).................... 675
50 Claire's Stores, Inc................. 1,034
105 CompUSA, Inc. (b).................... 1,897
82 Cracker Barrel....................... 2,604
73 Fingerhut Companies, Inc............. 2,409
58 Fred Meyer, Inc. (b)(c).............. 2,482
66 Hannaford Brothers Co................ 2,900
100 Just For Feet, Inc. (b).............. 2,850
40 Kohl's Corp. (b)..................... 2,075
85 OfficeMax, Inc. (b).................. 1,403
96 Outback Steakhouse, Inc. (b)(c)...... 3,743
48 Payless Shoesource, Inc. (b)......... 3,537
115 Proffitts, Inc. (b).................. 4,642
42 Saks Holdings, Inc. (b).............. 1,160
70 Williams Sonoma, Inc. (b)............ 2,227
--------
43,693
--------
Shelter (3.7%):
59 Bowater, Inc......................... 2,788
19 Chesapeake Corp...................... 740
73 Clayton Homes, Inc................... 1,387
116 Consolidated Papers, Inc............. 3,161
108 Georgia Pacific Timber Corp.......... 2,484
134 Leggett & Platt, Inc................. 3,350
35 Masco Corp........................... 2,118
148 Pentair, Inc......................... 6,289
69 Rayonier, Inc........................ 3,165
--------
25,482
--------
Technology (6.4%):
114 American Power Conversion (b)........ 3,420
77 Arrow Electronics, Inc. (b).......... 1,679
68 ATMEL Corp. (b)...................... 927
35 Avnet, Inc........................... 1,887
100 Cirrus Logic, Inc. (b)............... 1,113
84 Cordant Technology, Inc.............. 3,874
38 Dell Computer Corp. (b).............. 3,527
22 Litton Industries, Inc. (b).......... 1,298
130 LSI Logic Corp. (b).................. 2,998
47 NCR Corp. (b)........................ 1,528
96 Qualcomm, Inc. (b)(c)................ 5,393
137 Quantum Corp. (b).................... 2,849
</TABLE>
Continued
50
<PAGE> 53
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Disciplined Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology, continued:
94 SCI Systems, Inc. (b)(c)............. $ 3,537
109 Sterling Software, Inc. (b).......... 3,222
88 Storage Technology Corp. (b)......... 3,816
33 Stratus Computer, Inc. (b)........... 825
46 Teradyne, Inc. (b)(c)................ 1,231
67 Vishay Intertechnology, Inc. (b)..... 1,202
--------
44,326
--------
Transportation (1.4%):
12 Alaska Air Group, Inc. (b)........... 655
58 Alexander & Baldwin, Inc............. 1,689
43 ASA Holdings, Inc.................... 2,134
65 CNF Transportation, Inc.............. 2,762
75 Wisconsin Central Transportation
Corp. (b).......................... 1,641
57 Yellow Corp. (b)..................... 1,058
--------
9,939
--------
Utilities (21.4%):
102 AES Corp. (b)........................ 5,361
307 Allegheny Energy, Inc................ 9,248
70 American Water Works, Inc. (c)....... 2,170
105 Baltimore Gas & Electric Co.......... 3,262
48 Calenergy, Inc. (b).................. 1,443
222 Century Telephone Enterprises........ 10,184
102 Cinergy Corp......................... 3,570
253 CMS Energy Corp. (c)................. 11,133
63 Conectiv, Inc. (b)................... 1,292
290 El Paso Natural Gas Co............... 11,093
151 Energy East Corp..................... 6,285
83 Florida Progress Corp................ 3,413
85 General Public Utilities Corp........ 3,214
100 L G & E Energy Corp.................. 2,706
170 Marketspan Corp...................... 5,089
70 MCN Energy Group, Inc................ 1,741
200 Montana Power Co..................... 6,943
236 New Century Energies, Inc............ 10,702
39 New England Electric System.......... 1,687
171 Nipsco Industries, Inc. (c).......... 4,788
80 Northeast Utilities (b).............. 1,355
122 OGE Energy Corp...................... 3,294
160 Pinnacle West Capital Corp........... 7,182
166 Potomac Electric Power Co............ 4,160
140 Qwest Communications International,
Inc. (b)........................... 4,880
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities, continued:
251 SCANA Corp. (c)...................... $ 7,483
322 TECO Energy, Inc..................... 8,634
130 The Williams Companies, Inc. (c)..... 4,381
36 UtiliCorp United, Inc................ 1,357
--------
148,050
--------
Total Common Stocks 680,977
--------
REPURCHASE AGREEMENTS (2.6%):
$18,245 Prudential Securities, 6.10%, 7/1/98
(Collateralized by $18,437 various
U.S. Government Securities, 5.25% -
6.10%, 11/30/99 - 6/26/03, market
value $18,611)..................... 18,245
--------
Total Repurchase Agreements 18,245
--------
SHORT-TERM SECURITIES HELD AS COLLATERAL (8.6%):
Master Notes (1.6%):
2,270 Bear Stearns Mortgage Capital, 6.77%,
10/9/98*........................... 2,270
1,892 Danaher Corp., 6.68%, 10/9/98*....... 1,892
1,135 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*.................... 1,135
2,572 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*.................... 2,572
681 NationsBanc Capital Markets, 6.70%,
7/1/98*............................ 681
2,270 Williamette Industries, Inc., 5.85%,
7/23/98*........................... 2,270
--------
10,820
--------
Put Bonds (2.4%):
1,892 Associates Corp. N.A., 5.79%,
1/4/99*............................ 1,891
1,513 Branch Banking & Trust, 5.92%,
12/10/99*.......................... 1,513
757 Citicorp, 5.94%, 8/3/98*............. 757
1,740 Evangelical Lutheran, 5.74%,
4/28/00*........................... 1,737
2,270 GMAC, 5.85%, 11/10/99*............... 2,273
1,892 Goldman Sachs, 6.06%, 11/21/00*...... 1,892
1,892 Greenwich Capital, 6.11%,
12/13/99*.......................... 1,892
1,892 Lehman Brothers Holdings, 5.85%,
8/18/99*........................... 1,892
757 Merrill Lynch, 6.07%, 11/13/98*...... 757
1,892 PNC Bank, 5.74%, 10/2/98*............ 1,890
--------
16,494
--------
</TABLE>
Continued
51
<PAGE> 54
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Disciplined Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements (4.6%):
$ 7,567 Donaldson, Lufkin & Jenrette, 6.65%,
7/1/98 (Collateralized by $7,736
various Corporate and Government
Securities, 2.85% - 17.25%,
10/15/02
- 4/15/35, market value $7,858).... $ 7,567
3,783 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $4,032 various
Corporate Bonds, 0.00%, 7/7/98
- 9/18/98, market value $4,018).... 3,783
19,447 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $19,933 various
Corporate Bonds, 0.00% - 10.13%,
9/15/99 - 10/17/96, market value
$20,864)........................... 19,447
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$ 13 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $14 Media One
Group Bonds, 0.00%, 10/5/98, market
value $14)......................... $ 13
605 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $3,790 various
Government Securities,
0.00% - 10.00%, 12/1/18 - 5/1/24,
market value $623)................. 605
757 Paine Webber, 6.40%, 7/1/98
(Collateralized by $755 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$795).............................. 757
--------
32,172
--------
Total Short-Term Securities Held as Collateral 59,486
--------
Total (Cost $650,635)(a) $758,708
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $694,209.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $161. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $120,042
Unrealized depreciation..................................... (12,130)
--------
Net unrealized appreciation................................. $107,912
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
52
<PAGE> 55
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Large Company Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS (99.6%):
Business Equipment & Services (1.8%):
55 America Online (b)................. $ 5,830
130 Automatic Data Processing, Inc..... 9,474
60 Omnicom Group, Inc. (c)............ 2,993
358 U.S.A. Waste Services, Inc.
(b)(c)........................... 17,695
----------
35,992
----------
Capital Goods (7.8%):
1,474 General Electric Co................ 134,134
345 Tyco International, Ltd. (c)....... 21,741
----------
155,875
----------
Consumer Non-Durable (16.9%):
155 Anheuser Busch Co., Inc............ 7,324
40 Avon Products, Inc................. 3,100
110 Bestfoods.......................... 6,387
200 Campbell Soup Co................... 10,636
1,008 Coca-Cola Co....................... 86,188
140 Colgate Palmolive Co............... 12,320
151 Conagra, Inc....................... 4,791
447 Gillette Co........................ 25,351
65 H.J. Heinz Co...................... 3,654
210 Kellogg Co......................... 7,896
170 Newell Co.......................... 8,483
582 PepsiCo, Inc....................... 23,958
1,101 Philip Morris Co., Inc............. 43,356
568 Procter & Gamble Co................ 51,740
75 Quaker Oats Co..................... 4,120
30 Ralston-Ralston Purina Group....... 3,504
190 Sara Lee, Corp..................... 10,634
250 Unilever N V....................... 19,750
100 UST, Inc........................... 2,700
----------
335,892
----------
Consumer Services (1.8%):
165 Comcast Corp., Class A (c)......... 6,698
115 Gannett, Inc....................... 8,179
200 Hilton Hotels Corp. (c)............ 5,700
95 Mattel, Inc. (c)................... 4,024
190 Tele-Communications, Inc. (b)(c)... 7,307
60 Tribune Co......................... 4,129
----------
36,037
----------
Energy (1.0%):
90 Halliburton Co. (c)................ 4,015
230 Schlumberger Ltd. (c).............. 15,732
----------
19,747
----------
Financial Services (10.3%):
205 American Express Co................ 23,370
279 American International Group, Inc.
(c).............................. 40,686
73 Capital One Financial Corp......... 9,066
171 Charles Schwab Corp. (c)........... 5,541
360 Chase Manhattan Corp............... 27,210
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
320 Federal National Mortgage Assoc.... $ 19,417
25 Fifth Third Bancorp................ 1,575
94 First Virginia Banks, Inc.......... 4,796
101 Franklin Resources, Inc............ 5,476
200 Household International............ 9,950
69 Marsh & McLennan Co. (c)........... 4,170
210 MBNA Corp. (c)..................... 6,933
40 MGIC Investment Group (c).......... 2,288
130 Morgan Stanley Dean Witter Discover
(c).............................. 11,906
100 National City Corp................. 7,100
59 State Street Corp.................. 4,094
20 T. Rowe Price Associates, Inc...... 751
324 U.S. Bancorp....................... 13,938
150 Washington Mutual, Inc. (c)........ 6,522
----------
204,789
----------
Health Care (20.1%):
471 Abbott Labs........................ 19,236
539 American Home Products Co.......... 27,914
90 Baxter International, Inc.......... 4,854
85 Boston Scientific Corp. (b)(c)..... 6,088
511 Bristol Myers Squibb Co............ 58,676
75 Cardinal Health, Inc. (c).......... 7,031
450 Eli Lilly & Co..................... 29,755
50 Guidant Corp....................... 3,566
170 HBO & Co........................... 6,000
500 Johnson & Johnson.................. 36,859
155 Medtronic, Inc. (c)................ 9,881
446 Merck & Co., Inc................... 59,619
531 Pfizer, Inc........................ 57,710
393 Schering Plough Corp............... 36,013
550 Warner Lambert Co.................. 38,177
----------
401,379
----------
Multi-Industry (0.6%):
150 Minnesota Mining & Manufacturing
Co............................... 12,328
----------
Raw Materials (2.6%):
488 Du Pont (EI) de Nemours & Co....... 36,453
260 Monsanto Co........................ 14,523
----------
50,976
----------
Retail (8.2%):
120 Consolidated Stores Corp. (b)...... 4,350
85 Costco Cos., Inc. (b)(c)........... 5,360
160 CVS Corp........................... 6,238
189 Dayton Hudson Corp. (c)............ 9,186
165 Gap, Inc. (c)...................... 10,174
292 Home Depot, Inc.................... 24,257
808 Just For Feet, Inc. (b)(c)......... 23,025
</TABLE>
Continued
53
<PAGE> 56
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Large Company Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
125 Kroger Co. (b)..................... $ 5,368
162 TJX Cos., Inc...................... 3,899
1,036 Wal-Mart Stores, Inc. (c).......... 62,949
215 Walgreen Co........................ 8,895
----------
163,701
----------
Shelter (0.6%):
239 Kimberly Clark Corp................ 10,963
----------
Technology (21.7%):
185 Applied Materials, Inc. (b)........ 5,460
125 Ascend Communications, Inc. (b).... 6,195
453 Cisco Systems, Inc. (b)............ 41,679
204 Computer Associates International,
Inc. (c)......................... 11,313
0 Compuware Corp. (d)................ 5
565 Dell Computer Corp. (b)............ 52,476
255 EMC Corp. (b)(c)................... 11,436
50 Gateway 2000, Inc. (b)(c).......... 2,536
16 Hewlett Packard Co................. 930
549 Intel Corp......................... 40,673
325 International Business Machines.... 37,314
551 Lucent Technologies, Inc........... 45,795
1,177 Microsoft Corp. (b)................ 127,514
251 Northern Telecom, Ltd.............. 14,244
250 Oracle Corp. (b)(c)................ 6,146
85 Tellabs, Inc. (b)(c)............... 6,088
100 United Technologies Corp........... 9,250
140 Xerox Corp......................... 14,258
----------
433,312
----------
Transportation (0.2%):
50 Southwest Airlines Company......... 1,481
30 US Airways Group, Inc. (b)......... 2,378
----------
3,859
----------
Utilities (6.0%):
230 Airtouch Communications, Inc.
(b).............................. 13,446
451 Ameritech Corp..................... 20,216
623 Bell Atlantic Corp. (c)............ 28,443
370 GTE Corp........................... 20,604
781 SBC Communications, Inc............ 31,232
100 WorldCom, Inc. (b)................. 4,844
----------
118,785
----------
Total Common Stocks.......................... 1,983,635
----------
REPURCHASE AGREEMENTS (0.1%):
$1,891 Prudential Securities, 6.10%,
7/1/98 (Collateralized by $1,947
U.S. Treasury Bills, 9/3/98,
market value $1,929)............. 1,891
----------
Total Repurchase Agreements.................. 1,891
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL (8.9%):
Master Notes (1.6%):
$6,760 Bear Stearns Mortgage Capital,
6.77%, 10/9/98*.................. $ 6,760
5,633 Danaher Corp., 6.68%, 10/9/98*..... 5,633
3,380 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*.................. 3,380
7,661 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*.................. 7,662
2,028 NationsBanc Capital Markets, 6.70%,
7/1/98*.......................... 2,028
6,760 Williamette Industries, Inc.,
5.85%, 7/23/98*.................. 6,760
----------
32,223
----------
Put Bonds (2.5%):
5,633 Associates Corp. N.A., 5.79%,
1/4/99*.......................... 5,630
4,507 Branch Banking & Trust, 5.92%,
12/10/99*........................ 4,507
2,253 Citicorp, 5.94%, 8/3/98*........... 2,253
5,183 Evangelical Lutheran, 5.74%,
4/28/00*......................... 5,174
6,760 GMAC, 5.85%, 11/10/99*............. 6,771
5,633 Goldman Sachs, 6.06%, 11/21/00*.... 5,633
5,633 Greenwich Capital, 6.11%,
12/13/99*........................ 5,633
5,633 Lehman Brothers Holdings, 5.85%,
8/18/99*......................... 5,634
2,253 Merrill Lynch, 6.07%, 11/13/98*.... 2,253
5,633 PNC Bank, 5.74%, 10/2/98*.......... 5,630
----------
49,118
----------
Repurchase Agreements (4.8%):
22,534 Donaldson, Lufkin & Jenrette,
6.65%, 7/1/98 (Collateralized by
$23,038 various Corporate and
Government Securities,
2.85% - 17.25%,
10/15/02 - 4/15/35, market value
$23,400)......................... 22,534
11,267 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $12,009
various Corporate Bonds, 0.00%,
7/7/98 - 9/18/98, market value
$11,965)......................... 11,267
57,910 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $59,361
various Corporate Bonds,
0.00% - 10.13%,
9/15/99 - 10/17/96, market value
$62,133)......................... 57,910
39 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $41 Media One
Group Bonds, 0.00%, 10/5/98,
market value $41)................ 39
</TABLE>
Continued
54
<PAGE> 57
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Large Company Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$1,803 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $11,285
various Government Securities,
0.00% - 10.00%, 12/1/18 - 5/1/24,
market value $1,856)............. $ 1,803
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$2,253 Paine Webber, 6.40%, 7/1/98
(Collateralized by $2,249 various
Corporate Bonds, 4.00%-9.75%,
7/15/98-12/31/49, market value
$2,366).......................... $ 2,253
----------
95,806
----------
Total Short-Term Securities Held as
Collateral 177,147
----------
Total (Cost $1,443,904) (a) $2,162,673
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $1,990,628.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $3,471. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $724,999
Unrealized depreciation..................................... (9,701)
--------
Net unrealized appreciation................................. $715,298
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
(d) Rounds to less than 1,000
* The interest rate for this variable rate note, which will change periodically,
is based upon on index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
55
<PAGE> 58
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Growth Opportunities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS (98.2%):
Business Equipment & Services (17.7%):
270 AccuStaff, Inc. (b)................ $ 8,438
437 America Online, Inc. (b)(c)........ 46,301
190 Cintas Corp........................ 9,710
210 Comdisco, Inc...................... 3,990
172 Corrections Corporation of America
(b).............................. 4,042
177 Fiserv, Inc. (b)................... 7,508
45 GTECH Holdings Corp. (b)........... 1,516
158 Manpower, Inc...................... 4,544
211 Miller (Herman), Inc............... 5,130
338 Paychex, Inc....................... 13,743
27 Pittston Co........................ 981
59 Policy Management Systems Corp.
(b).............................. 2,316
279 Reynolds & Reynolds Co............. 5,069
563 Staples, Inc. (b)(c)............... 16,286
177 Sterling Commerce, Inc. (b)(c)..... 8,606
240 Sungard Data Systems, Inc.
(b)(c)........................... 9,198
522 U.S.A. Waste Services, Inc.
(b)(c)........................... 25,789
91 Viad Corp.......................... 2,536
280 Viking Office Products (b)......... 8,785
101 Wallace Computer Services, Inc..... 2,401
----------
186,889
----------
Capital Goods (2.6%):
128 Diebold, Inc....................... 3,684
30 Donaldson Co., Inc................. 707
85 Fastenal Co. (c)................... 3,929
76 Federal Signal Corp................ 1,853
75 Martin Marietta Materials, Inc..... 3,375
129 Sundstrand Corp.................... 7,361
70 UCAR International, Inc. (b)....... 2,043
170 United States Filter Corp.
(b)(c)........................... 4,771
----------
27,723
----------
Consumer Durable (2.5%):
222 Danaher Corp. (c).................. 8,134
78 Federal Mogul Corp. (c)............ 5,252
283 Harley-Davidson, Inc............... 10,981
50 Kaydon Corp........................ 1,766
----------
26,133
----------
Consumer Non-Durable (7.7%):
790 Coca-Cola Enterprises, Inc. (c).... 30,991
75 Dean Foods Co...................... 4,120
193 Dial Corp. (c)..................... 4,993
119 Dole Food, Inc..................... 5,923
184 Flowers Industries, Inc............ 3,765
159 General Nutrition Cos., Inc. (b)... 4,952
149 Interstate Bakeries Co. (c)........ 4,928
205 Jones Apparel Group, Inc. (b)...... 7,513
68 Lancaster Colony Corp.............. 2,574
135 McCormick & Co., Inc............... 4,822
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Non-Durable, continued:
105 Unifi, Inc......................... $ 3,607
50 Vlasic Foods International, Inc.
(b).............................. 1,006
74 Wausau-Mosinee Paper Corp.......... 1,693
----------
80,887
----------
Consumer Services (2.4%):
4 Belo (A.H.) Corp., Series A........ 98
245 International Game Technologies.... 5,948
50 Media General Inc., Class A........ 2,438
39 Promus Hotel Corp. (b)............. 1,486
38 TCA Cable TV, Inc.................. 2,280
22 Washington Post Co................. 12,901
----------
25,151
----------
Energy (3.8%):
70 Camco International, Inc........... 5,451
7 ENSCO International, Inc........... 118
200 EVI Weatherford, Inc. (b).......... 7,426
367 Global Marine, Inc. (b)............ 6,864
92 Nabors Industries, Inc. (b)........ 1,828
62 Noble Drilling Corp. (b)........... 1,489
209 Ocean Energy, Inc. (b)............. 4,089
96 Smith International, Inc. (b)(c)... 3,352
49 Tidewater, Inc. (c)................ 1,620
108 Tosco Corp. (c).................... 3,184
241 Varco International, Inc. (b)...... 4,779
----------
40,200
----------
Financial Services (7.1%):
537 AFLAC, Inc......................... 16,287
4 Associated Banc-Corp............... 141
14 Capital One Financial Corp......... 1,763
102 City National Corp................. 3,768
5 First Security Corp................ 115
271 First Tennessee National Corp...... 8,553
85 First Virginia Banks, Inc.......... 4,335
19 Marshall & Ilsley Corp............. 970
220 North Fork Bancorp., Inc........... 5,376
184 Robert Half International, Inc.
(b).............................. 10,292
239 T. Rowe Price Associates, Inc...... 8,995
7 TCF Financial Corp................. 204
65 Union Planters Corp................ 3,829
52 Wilmington Trust Corp.............. 3,166
132 Zions Bancorp...................... 7,013
----------
74,807
----------
Health Care (13.0%):
25 Beckman Coulter, Inc............... 1,456
154 Biogen, Inc. (b)................... 7,536
151 Centocor, Inc. (b)(c).............. 5,481
161 Chiron Corp. (b)(c)................ 2,526
30 Concentra Managed Care, Inc.
(b)(c)........................... 780
</TABLE>
Continued
56
<PAGE> 59
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Growth Opportunities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care, continued:
146 DENTSPLY International, Inc........ $ 3,655
161 First Health Group Corp. (b)(c).... 4,584
176 Forest Laboratories, Inc., Class A
(b).............................. 6,292
242 Foundation Health Systems, Inc.,
Series A (b)..................... 6,370
88 Health Care & Retirement Corp.
(b)(c)........................... 3,467
323 Health Management Associates, Inc.
(b).............................. 10,808
125 Hillenbrand Industries, Inc........ 7,470
145 ICN Pharmaceuticals, Inc........... 6,625
190 McKesson Corp. (c)................. 15,437
255 Mylan Laboratories, Inc. (c)....... 7,666
154 Omnicare, Inc...................... 5,871
206 Oxford Health Plans, Inc. (b)...... 3,154
20 PSS World Medical, Inc. (b)........ 293
145 Quintiles Transnational Corp.
(b).............................. 7,132
150 Quorum Health Group, Inc. (b)...... 3,975
40 R. P. Scherer Corp. (b)............ 3,545
183 Stryker Corp. (c).................. 7,038
195 Sybron International Corp. (b)..... 4,924
100 Total Renal Care Holdings, Inc.
(b).............................. 3,450
171 Watson Pharmaceutical, Inc. (b).... 7,993
----------
137,528
----------
Multi-Industry (0.5%):
40 Brio Technology, Inc. (b).......... 535
25 UniCapital Corp. (b)............... 478
200 Whitman Corp....................... 4,588
----------
5,601
----------
Raw Materials (2.5%):
52 Betzdearborn, Inc.................. 2,202
146 Crompton & Knowles Corp............ 3,687
57 Cytec Industries, Inc. (b)......... 2,540
86 Ferro Corp......................... 2,165
161 Lyondell Petrochemical Co.......... 4,910
205 Solutia, Inc....................... 5,882
39 Vulcan Materials Co................ 4,203
38 Witco Corp......................... 1,106
----------
26,695
----------
Retail (9.9%):
131 Barnes & Noble, Inc. (b)........... 4,897
139 Bed Bath & Beyond, Inc. (b)(c)..... 7,223
157 Best Buy, Inc. (b)................. 5,686
100 Borders Group, Inc. (b)............ 3,700
4 CompUSA, Inc. (b).................. 68
295 Dollar General Corp. (c)........... 11,675
412 Family Dollar Stores, Inc.......... 7,616
245 Fred Meyer, Inc. (b)(c)............ 10,413
741 Just For Feet, Inc. (b)............ 21,118
328 Kohl's Corp. (b)................... 16,993
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
60 Lands' End, Inc. (b)............... $ 1,898
77 Outback Steakhouse, Inc. (b)....... 3,014
25 Restoration Hardware, Inc.
(b)(c)........................... 628
166 Starbucks Corp. (b)(c)............. 8,860
16 Tiffany & Co....................... 768
----------
104,557
----------
Shelter (2.3%):
129 HON INDUSTRIES, Inc................ 4,386
381 Leggett & Platt, Inc............... 9,520
222 Shaw Industries, Inc............... 3,913
212 Sonoco Products Co................. 6,413
----------
24,232
----------
Technology (19.3%):
280 ADC Telecommunications, Inc.
(b)(c)........................... 10,240
191 Altera Corp. (b)................... 5,649
170 American Power Conversion Corp.
(b).............................. 5,109
431 Analog Devices, Inc. (b)(c)........ 10,582
438 BMC Software, Inc. (b)............. 22,769
514 Cadence Design Systems, Inc.
(b)(c)........................... 16,053
406 Compuware Corp. (b)................ 20,757
55 Comverse Technology, Inc. (b)(c)... 2,853
144 Dell Computer Corp. (b)............ 13,384
126 Electronic Arts, Inc. (b).......... 6,826
130 Keane, Inc. (b).................... 7,280
136 Lexmark International Group, Inc.
(b).............................. 8,296
152 Linear Technology Corp............. 9,161
320 Maxim Integrated Products, Inc.
(b).............................. 10,140
25 MIPS Technologies, Inc. (b)........ 325
243 Network Associates, Inc. (b)(c).... 11,610
125 SCI Systems, Inc. (b)(c)........... 4,707
125 software.net Corp. (b)(c).......... 2,391
233 Solectron Corp. (b)(c)............. 9,809
169 Storage Technology Corp. (b)....... 7,330
63 Structural Dynamics Research Corp.
(b).............................. 1,452
80 Symantec Corp. (b)(c).............. 2,090
111 Symbol Technologies, Inc........... 4,202
115 Synopsys, Inc. (b)(c).............. 5,261
50 Unigraphics Solutions, Inc.
(b)(c)........................... 700
146 Xilinx, Inc. (b)................... 4,978
----------
203,954
----------
Transportation (1.7%):
100 Airborne Freight Corp.............. 3,494
45 Canadian National Railway Co....... 2,365
5 CNF Transportation, Inc............ 213
213 Kansas City Southern Industries,
Inc.............................. 8,870
----------
16,642
----------
</TABLE>
Continued
57
<PAGE> 60
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Growth Opportunities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities (5.2%):
241 360 Communications Co. (b)......... $ 7,696
379 AES Corp. (b)...................... 19,910
270 Cincinnati Bell, Inc. (c).......... 7,729
15 Intelect Communications, Inc.
(b)(c)........................... 80
44 Interstate Energy Corp............. 1,430
271 LG&E Energy Corp................... 7,329
4 MCN Energy Group, Inc.............. 100
2 Qwest Communications International,
Inc. (b)......................... 86
115 Seagull Energy Corp. (b)........... 1,906
133 Southern New England
Telecommunications, Inc.......... 8,711
----------
54,977
----------
Total Common Stocks 1,035,976
----------
REPURCHASE AGREEMENTS (0.5%):
$ 5,221 Prudential Securities, 6.10%,
7/1/98 (Collateralized by $5,374
U.S. Treasury Bills, 9/3/98,
market value $5,326)............. 5,221
----------
Total Repurchase Agreements 5,221
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL (19.5%):
Master Notes (3.5%):
7,860 Bear Stearns Mortgage Capital,
6.77%, 10/9/98*.................. 7,860
6,550 Danaher Corp., 6.68%, 10/9/98*..... 6,550
3,930 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*.................. 3,930
8,908 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*.................. 8,907
2,358 NationsBanc Capital Markets, 6.70%,
7/1/98*.......................... 2,358
7,860 Williamette Industries, Inc.,
5.85%, 7/23/98*.................. 7,859
----------
37,464
----------
Put Bonds (5.4%):
6,550 Associates Corp. N.A., 5.79%,
1/4/99*.......................... 6,546
5,240 Branch Banking & Trust, 5.92%,
12/10/99*........................ 5,240
2,620 Citicorp, 5.94%, 8/3/98*........... 2,620
6,026 Evangelical Lutheran, 5.74%,
4/28/00*......................... 6,015
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Put Bonds, continued:
$ 7,860 GMAC, 5.85%, 11/10/99*............. $ 7,871
6,550 Goldman Sachs, 6.06%, 11/21/00*.... 6,550
6,550 Greenwich Capital, 6.11%,
12/13/99*........................ 6,550
6,550 Lehman Brothers Holdings, 5.85%,
8/18/99*......................... 6,550
2,620 Merrill Lynch, 6.07%, 11/13/98*.... 2,620
6,550 PNC Bank, 5.74%, 10/2/98*.......... 6,545
----------
57,107
----------
Repurchase Agreements (10.6%):
26,199 Donaldson, Lufkin & Jenrette,
6.65%, 7/1/98 (Collateralized by
$26,785 various Corporate and
Government Securities, 2.85% -
17.25%, 10/15/02 - 4/15/35,
market value $27,207)............ 26,199
13,099 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $13,962
various Corporate Bonds, 0.00%,
7/7/98 - 9/18/98, market value
$13,911)......................... 13,099
67,332 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $69,017
various Corporate Bonds, 0.00% -
10.13%, 9/15/99 - 10/17/96,
market value $72,239)............ 67,332
45 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $48 Media One
Group Bonds, 0.00%, 10/5/98,
market value $48)................ 45
2,096 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $13,121
various Government Securities,
0.00% - 10.00%, 12/1/18 - 5/1/24,
market value $2,158)............. 2,096
2,620 Paine Webber, 6.40%, 7/1/98
(Collateralized by $2,615 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$2,751).......................... 2,620
----------
111,391
----------
Total Short-Term Securities Held as
Collateral 205,962
----------
Total (Cost $1,037,010) (a) $1,247,159
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $1,056,566.
Continued
58
<PAGE> 61
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Growth Opportunities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $9,940. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $235,024
Unrealized depreciation..................................... (34,815)
--------
Net unrealized appreciation................................. $200,209
========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
59
<PAGE> 62
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Small Capitalization Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMERCIAL PAPER (4.8%):
Financial Services (4.8%):
$7,300 Merrill Lynch, 5.60%, 9/19/98........ $ 7,212
--------
Total Commercial Paper 7,212
--------
COMMON STOCKS (84.9%):
Business Equipment & Services (9.8%):
20 A Consulting Team, Inc. (b).......... 213
35 Acxiom Corp. (b)..................... 872
15 American Management Systems (b)...... 449
50 Billing Information Concepts (b)..... 774
10 Bowne & Co., Inc..................... 450
28 Carriage Services, Inc., Class A
(b)................................ 704
10 Catalina Marketing Corp. (b)......... 519
15 Central Parking Corp................. 683
40 CHS Electronics, Inc. (b)(c)......... 715
38 Concord EFS, Inc. (b)................ 979
30 Equity Corporation International
(b)................................ 720
20 Hyperion Software Corp. (b).......... 556
30 Inspire Insurance Solutions (b)...... 997
24 Interim Services, Inc. (b)........... 771
25 International Telecommunications Data
Systems (b)........................ 725
15 MPW Industrial Services Group (b).... 203
30 Nova Corp. (b)(c).................... 1,072
30 Paxar Corp. (b)...................... 345
20 Staff Leasing, Inc. (b).............. 590
20 Staffmark, Inc. (b).................. 733
7 Stone & Webster, Inc................. 277
10 Tetra Technologies, Inc. (b)......... 168
12 Wackenhut Corrections Corp. (b)...... 283
10 World Access, Inc. (b)(c)............ 300
18 Zebra Technologies, Class A (b)...... 770
--------
14,868
--------
Capital Goods (4.8%):
13 Applied Power, Inc., Class A......... 447
9 Astec Industries, Inc. (b)........... 311
12 Belden, Inc.......................... 368
26 Blount International, Inc., Class
A.................................. 740
20 Imco Recycling, Inc.................. 370
34 Interface, Inc....................... 686
8 Ionics, Inc. (b)..................... 295
25 Kuhlman Corp......................... 988
8 Lone Star Industries (c)............. 617
10 Medusa Corp.......................... 628
20 Roper Industries, Inc................ 523
30 Savoir Technology Group, Inc.
(b)(c)............................. 345
11 Texas Industries, Inc. (c)........... 583
15 Wabash National Corp. (c)............ 386
--------
7,287
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Durable (1.5%):
15 Breed Technologies, Inc. (c)......... $ 230
30 Gentex Corp. (b)..................... 544
20 Keystone Automotive Industries, Inc.
(b)................................ 463
7 SPX Corp. (b)........................ 451
18 Watsco, Inc.......................... 632
--------
2,320
--------
Consumer Non-Durable (7.6%):
26 Advanced Energy Corp. (b)............ 605
10 Aptargroup, Inc...................... 622
13 Canandaigua Wine Co., Class A (b).... 639
6 Coca-Cola Bottling Co................ 397
20 Corn Products International, Inc.
(b)................................ 678
20 Earthgrains Co....................... 1,117
17 Guilford Mills, Inc.................. 340
25 Mohawk Industries Co. (b)............ 792
22 Natures Sunshine Products, Inc....... 496
20 Nautica Enterprises, Inc. (b)........ 536
40 NBTY, Inc. (b)....................... 735
15 Pacific Sunwear of California (b).... 525
14 Pillowtex Corp....................... 562
18 Richfood Holdings, Inc............... 372
18 Smithfield Foods, Inc. (b)........... 549
12 St. John Knits, Inc.................. 464
6 Timberland Co., Class A (b).......... 432
30 Westpoint Stevens, Inc. (b)(c)....... 989
30 Wolverine World Wide, Inc............ 651
--------
11,501
--------
Consumer Services (2.7%):
30 Action Performance Co., Inc.
(b)(c)............................. 965
10 Carmike Cinemas, Inc., Class A (b)... 269
22 Grand Casinos (b).................... 369
25 International Speedway Corp., Class
A.................................. 710
30 Players International, Inc. (b)...... 149
22 Primadonna Resorts, Inc. (b)......... 316
10 Sturm, Ruger & Co., Inc.............. 168
30 Suburban Lodges of America (b)....... 454
12 World Color Press, Inc. (b).......... 420
--------
3,820
--------
Energy (2.7%):
10 Barrett Resources Corp. (b).......... 374
10 Devon Energy Corp. (c)............... 349
40 EEX Corp. (b)........................ 375
20 Global Industries Ltd. (b)........... 338
12 Newfield Exploration Co. (b)......... 299
20 Newpark Resources, Inc. (b).......... 223
30 Patterson Energy, Inc. (b)........... 293
25 Pride Petroleum Services, Inc. (b)... 423
7 Saint Mary Land & Exploration........ 169
25 Santa Fe Energy Resources, Inc.
(b)................................ 269
</TABLE>
Continued
60
<PAGE> 63
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Small Capitalization Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Energy, continued:
10 Snyder Oil Corp...................... $ 199
12 Stone Energy Corp. (b)............... 426
25 Superior Energy Services, Inc. (b)... 127
12 Vintage Petroleum, Inc............... 227
--------
4,091
--------
Financial Services (14.0%):
35 Alabama National Bankcorp............ 1,316
25 Allied Capital Corp.................. 613
25 Amresco, Inc. (b).................... 728
11 BankAtlantic Bancorp, Inc., Series
B.................................. 145
13 Centura Banks, Inc................... 813
20 Colonial BancGroup, Inc.............. 645
35 Cooperative Bankshares, Inc. (b)..... 613
15 Cullen/Frost Bankers, Inc............ 814
10 Dain Rauscher Corp................... 548
15 Eagle Bancshares, Inc................ 360
15 Fidelity Bankshares, Inc............. 429
15 Fidelity National Corp. (b).......... 169
11 First Commercial Corp................ 729
40 First Financial Holdings, Inc........ 950
30 First Liberty Financial Corp......... 735
12 Keystone Financial, Inc.............. 444
10 Legg Mason, Inc...................... 576
35 Long Beach Financial Corp. (b)....... 385
15 Morgan Keegan, Inc................... 388
20 PMT Services, Inc. (b)............... 509
50 Protective Life Corp. (c)............ 1,833
16 Provident Financial Group, Inc....... 730
23 Raymond James Financial, Inc......... 674
22 Republic Bancshares, Inc. (b)........ 597
37 Resource Bancshares Mortgage Group... 689
50 Sirrom Capital Corp. (c)............. 1,300
42 Sovereign Bancorp, Inc............... 686
17 Trans Financial, Inc................. 975
30 Triad Guaranty, Inc. (b)............. 1,020
12 Whitney Holding Corp................. 609
--------
21,022
--------
Health Care (9.0%):
13 Alpharma, Inc., Class A (c).......... 282
14 Ballard Medical Products............. 259
24 Centennial Healthcare Corp. (b)...... 435
8 Cooper Cos., Inc. (b)................ 273
15 Cryolife, Inc. (b)................... 236
30 Genesis Health Ventures, Inc.
(b)(c)............................. 750
17 IDEXX Laboratories, Inc. (b)......... 413
11 Incyte Pharmaceuticals, Inc. (b)..... 379
14 Invacare Corp........................ 364
11 Jones Pharma, Inc.................... 364
22 Lincare Holdings, Inc. (b)........... 925
12 MedImmune, Inc. (b).................. 724
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care, continued:
12 Mentor Corp.......................... $ 293
4 North American Vaccine, Inc.
(b)(c)............................. 57
43 Orthodontic Centers of America
(b)(c)............................. 890
18 Patterson Dental Co. (b)............. 641
20 Phycor, Inc. (b)..................... 331
11 Protein Design Labs, Inc. (b)........ 263
18 PSS World Medical, Inc. (b).......... 256
19 Quorum Health Group, Inc. (b)........ 504
18 Respironics, Inc. (b)................ 283
24 Roberts Pharmaceutical Corp. (b)..... 552
22 Safeskin Corp. (b)................... 888
14 Steris Corp. (b)..................... 909
28 Sunrise Assisted Living, Inc.
(b)(c)............................. 945
15 Universal Health Services, Class B
(b)................................ 876
7 Vertex Pharmaceuticals, Inc.
(b)(c)............................. 158
7 Visx, Inc. (b)....................... 399
--------
13,649
--------
Manufacturing-Capital Goods (0.3%):
11 Wolverine Tube, Inc. (b)............. 418
--------
Multi-Industry (0.4%):
40 Denali, Inc. (b)..................... 625
--------
Raw Materials (2.5%):
27 Birmingham Steel Corp................ 334
20 Buckeye Technologies, Inc. (b)....... 471
22 Cambrex Corp......................... 578
25 Chemfirst, Inc....................... 632
20 Quanex Corp.......................... 606
16 Scotts Co., Class A (b).............. 596
6 Tredegar Industries, Inc............. 509
--------
3,726
--------
Retail (7.7%):
16 Cash America International, Inc...... 244
35 Cato Corp., Class A.................. 609
15 CKE Restaurants, Inc................. 619
10 Discount Auto Parts, Inc. (b)........ 260
14 Eagle Hardware & Garden, Inc. (b).... 324
12 Footstar, Inc. (b)................... 576
30 Hibbet Sporting Goods, Inc. (b)(c)... 1,201
30 Just For Feet, Inc. (b).............. 855
25 Landry's Seafood Restaurants, Inc.
(b)................................ 452
18 Men's Wearhouse, Inc. (b)............ 594
30 Michaels Stores, Inc. (b)............ 1,058
18 O'Reilly Automotive, Inc. (b)........ 648
12 Papa John's International, Inc.
(b)................................ 473
30 Pier 1 Imports, Inc.................. 716
19 Ross Stores, Inc..................... 817
36 Ruby Tuesday, Inc. (b)............... 558
46 Stein Mart, Inc. (b)................. 621
</TABLE>
Continued
61
<PAGE> 64
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Small Capitalization Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
15 Travis Boats & Motors, Inc. (b)...... $ 368
20 Williams Sonoma, Inc. (b)............ 636
--------
11,629
--------
Shelter (4.0%):
24 Caraustar Industries, Inc............ 693
15 Crossmann Communities, Inc. (b)...... 456
30 Ethan Allen Interiors, Inc........... 1,498
12 La-Z-Boy, Inc........................ 678
15 Ladd Furniture, Inc. (b)............. 450
20 Oakwood Homes Corp................... 600
10 Palm Harbor Homes, Inc. (b).......... 426
15 Pulaski Furniture Corp............... 375
17 Toll Brothers, Inc. (b).............. 488
9 U S Home Corp. (b)................... 371
--------
6,035
--------
Technology (12.6%):
12 Aavid Thermal Technologies (b)....... 351
14 Adtran, Inc. (b)..................... 366
14 Alliant Techsystems, Inc. (b)........ 886
38 Anixter International, Inc. (b)...... 724
33 Applied Materials, Inc. (b).......... 974
46 Aspect Telecommunications, Inc.
(b)................................ 1,259
34 Berg Electronics, Corp. (b).......... 665
60 Brightpoint, Inc. (b)(c)............. 870
1 Com21, Inc. (b)...................... 21
24 Comverse Technology, Inc. (b)(c)..... 1,219
20 Corsair Communications, Inc.
(b)(c)............................. 186
4 Datastream Systems, Inc. (b)......... 76
11 Etec Systems, Inc. (b)............... 387
47 Harbinger Corp. (b).................. 1,125
50 Infinium Software, Inc. (b).......... 694
15 MacDermid, Inc....................... 424
14 Microchip Technology, Inc. (b)....... 366
9 Novellus Systems, Inc. (b)........... 321
13 Oak Industries, Inc. (b)............. 460
37 P-Com, Inc. (b)...................... 339
14 Photronics, Inc. (b)................. 309
49 Platinum Technology, Inc. (b)(c)..... 1,399
20 Plexus Corp. (b)..................... 398
40 Powertel, Inc. (b)................... 740
41 Sanmina Corp. (b)(c)................. 1,795
16 SCI Systems, Inc. (b)(c)............. 606
18 Systems & Computer Technology Corp.
(b)................................ 486
34 Tech Data Corp. (b).................. 1,457
--------
18,903
--------
Transportation (3.2%):
34 Atlantic Coast Airlines, Inc. (b).... 1,020
23 Comair Holdings, Inc................. 695
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Transportation, continued:
20 Halter Marine Group, Inc. (b)........ $ 301
25 Heartland Express, Inc. (b).......... 506
10 MS Carriers, Inc. (b)................ 271
15 Railtex, Inc. (b).................... 199
32 Skywest, Inc......................... 896
10 U.S. Xpress Enterprises, Class A
(b)................................ 168
10 USFreightways Corp................... 328
23 Werner Enterprises, Inc.............. 429
--------
4,813
--------
Utilities (2.1%):
22 Energen Corp......................... 443
16 K N Energy, Inc...................... 866
15 Public Service Co. of NC, Inc........ 326
33 Rural Cellular Corp., Class A (b).... 516
11 Sierra Pacific Resources............. 399
26 Tel-Save Holdings, Inc. (b)(c)....... 384
10 TNP Enterprises, Inc................. 309
--------
3,243
--------
Total Common Stocks 127,950
--------
PREFERRED STOCKS (1.3%):
Computer Software (0.3%):
11 National Data Corp................... 481
Financial Services (1.0%):
10 CCB Financial Corp................... 1,063
20 Southwest Securities Group, Inc...... 450
--------
1,513
--------
Total Preferred Stocks 1,994
--------
U.S. TREASURY OBLIGATIONS (0.1%):
U.S. Treasury Bills (0.1%):
$ 50 7/23/98 (d).......................... 50
110 8/20/98 (d).......................... 109
40 8/27/98 (d).......................... 40
15 9/24/98 (d).......................... 15
--------
Total U.S. Treasury Obligations 214
--------
REPURCHASE AGREEMENTS (3.9%):
5,937 Prudential Securities, 6.10%, 7/1/98
(Collateralized by $6,111 U.S.
Treasury Bills, 9/3/98, market
value $6,057)...................... 5,937
--------
Total Repurchase Agreements 5,937
--------
SHORT-TERM SECURITIES HELD AS COLLATERAL (9.6%):
Master Notes (1.7%):
555 Bear Stearns Mortgage Capital, 6.77%,
10/9/98*........................... 555
462 Danaher Corp., 6.68%, 10/9/98*....... 462
277 Merrill Lynch Mortgage Capital,
6.75%, 7/23/98*.................... 277
</TABLE>
Continued
62
<PAGE> 65
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Small Capitalization Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Master Notes, continued:
$ 629 Morgan Stanley Mortgage Capital,
5.76%, 7/21/98*.................... $ 629
166 NationsBanc Capital Markets, 6.70%,
7/1/98*............................ 166
555 Williamette Industries, Inc., 5.85%,
7/23/98*........................... 555
--------
2,644
--------
Put Bonds (2.7%):
462 Associates Corp. N.A., 5.79%,
1/4/99*............................ 462
370 Branch Banking & Trust, 5.92%,
12/10/99*.......................... 370
185 Citicorp, 5.94%, 8/3/98*............. 185
425 Evangelical Lutheran, 5.74%,
4/28/00*........................... 425
555 GMAC, 5.85%, 11/10/99*............... 556
462 Goldman Sachs, 6.06%, 11/21/00*...... 462
462 Greenwich Capital, 6.11%,
12/13/99*.......................... 462
462 Lehman Brothers Holdings, 5.85%,
8/18/99*........................... 462
185 Merrill Lynch, 6.07%, 11/13/98*...... 185
462 PNC Bank, 5.74%, 10/2/98*............ 462
--------
4,031
--------
Repurchase Agreements (5.2%):
1,849 Donaldson, Lufkin & Jenrette, 6.65%,
7/1/98 (Collateralized by $1,891
various Corporate and Government
Securities, 2.85% - 17.25%,
10/15/02 - 4/15/35, market value
$1,920)............................ 1,849
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
SHORT-TERM SECURITIES HELD AS COLLATERAL, CONTINUED:
Repurchase Agreements, continued:
$ 925 Goldman Sachs, 6.65%, 7/1/98
(Collateralized by $985 various
Corporate Bonds, 0.00%,
7/7/98-9/18/98, market value
$982).............................. $ 925
4,752 Lehman Brothers, 6.65%, 7/1/98
(Collateralized by $4,871 various
Corporate Bonds, 0.00% - 10.13%,
9/15/99 - 10/17/96, market value
$5,099)............................ 4,752
3 Lehman Brothers, 6.47%, 7/1/98
(Collateralized by $3 Media One
Group Bonds, 0.00%, 10/5/98, market
value $3).......................... 3
148 Lehman Brothers, 6.00%, 7/1/98
(Collateralized by $926 various
Government Securities, 0.00% -
10.00%, 12/1/18 - 5/1/24, market
value $152)........................ 148
185 Paine Webber, 6.40%, 7/1/98
(Collateralized by $185 various
Corporate Bonds, 4.00% - 9.75%,
7/15/98 - 12/31/49, market value
$194).............................. 185
--------
7,862
--------
Total Short-Term Securities Held as Collateral 14,537
--------
Total (Cost $132,255)(a) $157,845
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $145,242.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $19. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $30,146
Unrealized depreciation..................................... (4,575)
-------
Net unrealized appreciation................................. $25,571
=======
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
(d) Serves as collateral for futures contracts.
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- ---------- ------------- --------- -------
<C> <S> <C> <C>
25 Long Russell 2000 September 1998 Futures $5,485 $5,779
10 Long Midcap 400, September 1998 Futures 1,782 1,823
------ ------
$7,267 $7,602
====== ======
</TABLE>
* The interest rate for this variable rate note, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
63
<PAGE> 66
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (94.5%):
ARGENTINA (0.5%):
Automotive (0.0%):
34 Renault Argentina................... $ 68
--------
Banking & Finance (0.0%):
40 Banco Galicia....................... 176
--------
Beverages & Tobacco (0.0%):
0 Buenos Aires Embottelladora SA,
Class B (b)(e).................... 0
--------
Metals & Mining (0.0%):
17 Siderca SA.......................... 29
--------
Oil & Gas Exploration, Production & Services (0.3%):
130 Perez Companc SA.................... 652
39 YPF Sociedad Anonima................ 1,160
--------
1,812
--------
Telecommunications (0.2%):
89 Telecom Argentina SA, Class B....... 505
235 Telefonica de Argentina SA, Class
B................................. 758
--------
1,263
--------
Total Argentina..................... 3,348
--------
AUSTRALIA (1.6%):
Banking (0.4%):
120 National Australia Bank Ltd......... 1,581
171 Westpac Banking Corp., Ltd.......... 1,043
--------
2,624
--------
Beverages & Tobacco (0.1%):
57 Coca-Cola Amatil Ltd................ 371
--------
Brewery (0.0%):
113 Foster's Brewing Group Ltd.......... 266
--------
Broadcasting & Publishing (0.2%):
157 News Corp., Ltd. (b)................ 1,278
--------
Building Products (0.2%):
221 Boral Ltd........................... 414
135 CSR Ltd............................. 390
131 Pioneer International Ltd........... 313
--------
1,117
--------
Diversified (0.0%):
82 Southcorp Holdings Ltd.............. 238
--------
Engineering (0.0%):
31 Leighton Holdings Ltd............... 108
--------
Metals (0.0%):
229 M.I.M. Holdings Ltd................. 111
36 RGC Ltd. (b)........................ 35
--------
146
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
AUSTRALIA, CONTINUED:
Metals & Mining (0.3%):
68 Aberfoyle Ltd....................... $ 108
125 Australian National Industries
Ltd............................... 72
135 Broken Hill Proprietary Co. Ltd..... 1,139
30 Delta Gold.......................... 37
28 Great Central Mines Ltd............. 26
12 Homestake Mining Company............ 118
35 Newcrest Mining Ltd. (b)............ 42
122 Normandy Mining Ltd................. 100
31 Resolute Limited (b)(e)............. 19
87 WMC Ltd............................. 261
--------
1,922
--------
Real Estate (0.2%):
186 General Property Trust.............. 301
177 Stockland Trust Group............... 404
186 Westfield Trust..................... 357
--------
1,062
--------
Retail-Stores/Catalog (0.1%):
102 Coles Myer Ltd...................... 398
--------
Services (0.1%):
18 Brambles Industries Ltd............. 351
--------
Total Australia..................... 9,881
--------
AUSTRIA (1.7%):
Airlines (0.1%):
22 Austrian Airlines................... 708
--------
Automotive (0.0%):
7 Steyr-Daimler-Puch AG............... 178
--------
Banking & Finance (0.6%):
7 Bank Austria AG..................... 485
6 Bank Austria AG - Vorzug............ 463
30 Bank Austria AG, Participating
Certificates...................... 2,450
--------
3,398
--------
Beverages & Tobacco (0.0%):
4 Osterreichische Brau-Beteiligungs
AG................................ 233
--------
Building Products (0.1%):
2 Wienerberger Baustoffindustrie AG... 575
--------
Chemicals (0.0%):
4 Lenzing AG (b)...................... 309
--------
Electrical Equipment (0.0%):
1 Austria Mikro Systeme
International..................... 68
--------
Engineering (0.1%):
4 VA Technologie AG................... 535
--------
Environmental Services (0.1%):
2 BWT AG.............................. 382
--------
</TABLE>
Continued
64
<PAGE> 67
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
AUSTRIA, CONTINUED:
Insurance (0.1%):
3 EA-Generali AG...................... $ 837
--------
Miscellaneous Materials & Commodities (0.1%):
9 Radex-Heraklith
Industriebeteiligungs AG.......... 434
--------
Oil & Gas Exploration, Production & Services (0.2%):
8 OMV AG.............................. 1,118
--------
Paper Products (0.0%):
1 Mayr-Melnhof Karton AG.............. 78
--------
Telecommunications -- Services and Equipment (0.3%):
11 Osterreichische
Elekrizitatswirtschafts-AG, Class
A................................. 1,275
--------
Transportation (0.0%):
5 Flughafen Wien AG................... 233
--------
Total Austria....................... 10,361
--------
BELGIUM (2.0%):
Banking (0.6%):
2 Generale de Banque SA............... 1,359
27 Kredietbank NV...................... 2,439
13 Kredietbank Strip................... 1
--------
3,799
--------
Chemicals (0.2%):
14 Solvay SA........................... 1,073
--------
Industrial Holding Company (0.1%):
4 Groupe Bruxelles Lambert SA......... 831
--------
Insurance (0.3%):
4 Fortis AG........................... 1,126
2 Royale Belge........................ 718
--------
1,844
--------
Merchandising (0.2%):
14 Delhaize-Le Lion SA................. 985
--------
Metals & Mining (0.0%):
3 Union Miniere Group................. 185
--------
Oil & Gas Exploration, Production & Services (0.2%):
3 PetroFina SA........................ 1,055
--------
Telecommunications -- Services and Equipment (0.4%):
9 Electrabel SA....................... 2,615
--------
Total Belgium....................... 12,387
--------
BRAZIL (0.2%):
Auto Parts (0.0%):
8 Marcopolo SA........................ 14
--------
Banking (0.0%):
800 Banco do Estado De SA............... 38
2,000 Uniao de Bancos Brasileir........... 48
--------
86
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
BRAZIL, CONTINUED:
Beverages & Tobacco (0.0%):
41 Companhia Cervejaria Brahma......... $ 23
--------
Chemicals (0.0%):
242 Copesul -- Companhia Pertoquimica do
Sul............................... 8
19 White Martins SA.................... 18
--------
26
--------
Electric Utility (0.0%):
8,991 Gerasul (b)......................... 12
--------
Gaming (0.0%):
5 Companhia Vidraria Santa Maria...... 8
--------
Gas & Electric Utility (0.2%):
8,991 Centrais Electricas Brasileiras
SA................................ 260
1,712 Centrais Electricas Brasileiras SA,
Class B........................... 52
4,116 Companhia Paranaense de Energia-
Copel (b)......................... 32
363 Light -- Servicos de Eletricidade
SA................................ 116
--------
460
--------
Steel (0.0%):
3,589 Companhia Siderurgica Nacional...... 86
4 Companhia Vale do Rio Doce (b)...... 76
--------
162
--------
Telecommunications (0.0%):
1,865 Telecomunicacoes Brasileiras SA..... 149
193 Telecomunicacoes de Sao Paulo SA
(b)............................... 29
441 Telesp Celular B (b)................ 37
193 Telesp Celular SA (b)............... 8
--------
223
--------
Tobacco (0.0%):
26 Souza Cruz SA....................... 191
--------
Total Brazil........................ 1,205
--------
CHILE (0.4%):
Banking & Finance (0.0%):
6 Banco de Santiago ADR............... 99
--------
Beverages & Tobacco (0.1%):
11 Embotelladora Andina SA ADR......... 177
7 Embotelladora Andina SA, Series A
ADR............................... 120
3 Vina Concho y Toro SA ADR........... 86
--------
383
--------
Chemicals (0.0%):
6 Quimica Y Minera Chile SA ADR....... 215
--------
Electric Utility (0.0%):
15 Gener SA ADR........................ 266
--------
</TABLE>
Continued
65
<PAGE> 68
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
CHILE, CONTINUED:
Forest Products (0.0%):
12 Maderas Y Sinteticos Anonima SA
ADR............................... $ 97
--------
Gas & Electric Utility (0.2%):
12 Chilectra SA ADR.................... 250
18 Enersis SA ADR...................... 447
--------
697
--------
Metals & Mining (0.0%):
12 Madeco SA ADR....................... 107
--------
Packaging (0.0%):
9 Cristalerias de Chile ADR........... 111
--------
Pharmaceutical (0.0%):
5 Laboratorio Chile ADR............... 68
--------
Telecommunications (0.1%):
27 Telecomunicaciones de Chile SA
ADR............................... 544
--------
Total Chile......................... 2,587
--------
DENMARK (1.4%):
Agriculture (0.0%):
3 Korn-OG Foderstof Kompagniet A/S.... 70
--------
Banking & Finance (0.2%):
7 Danske Bank......................... 870
7 Unidanmark A/S, Class A............. 593
--------
1,463
--------
Beverages & Tobacco (0.1%):
4 Carlsberg A/S, Class A.............. 258
7 Carlsberg A/S, Class B.............. 531
--------
789
--------
Commercial Services (0.0%):
4 ISS International Service System
A/S, Class B...................... 215
--------
Diversified (0.1%):
14 Superfos A/S........................ 370
--------
Electronics (0.0%):
2 Bang & Olufsen Holding.............. 133
--------
Engineering (0.0%):
7 FLS Industries A/S B................ 187
--------
Food Products & Services (0.1%):
9 Danisco A/S......................... 631
--------
Pharmaceuticals (0.3%):
11 Novo Nordisk A/S, Class B........... 1,571
--------
Telecommunications (0.3%):
19 Tele Danmark A/S, Class B........... 1,810
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
DENMARK, CONTINUED:
Transportation & Shipping (0.3%):
0 D/S 1912, Class B (e)............... $ 729
0 D/S Svendborg A/S, Class B (e)...... 904
0 Lauritzen (J.) Holding A/S (e)...... 30
5 SAS Danmark A/S..................... 94
--------
1,757
--------
Total Denmark....................... 8,996
--------
FINLAND (1.1%):
Banking & Finance (0.1%):
96 Merita Ltd., Class A................ 632
--------
Forest Products (0.1%):
27 UPM-Kymmene Corp.................... 748
--------
Health Care (0.0%):
2 Instrumentarium Group, Series A..... 120
--------
Insurance (0.1%):
5 Pohjola Insurance Group, Class B.... 239
8 Sampo Insurance Co.................. 379
--------
618
--------
Metals (0.0%):
24 Outokumpo OY, Class A............... 300
--------
Telecommunications (0.8%):
43 Nokia Oyj, Class A.................. 3,170
16 Nokia Oyj, Class K.................. 1,163
--------
4,333
--------
Total Finland....................... 6,751
--------
FRANCE (11.7%):
Automotive (0.2%):
6 PSA Peugeot......................... 1,355
--------
Banking (1.0%):
24 Banque Nationale de Paris........... 1,957
18 Paribas............................. 1,937
11 Societe Generale.................... 2,219
--------
6,113
--------
Beverages & Tobacco (0.4%):
10 LVMH (Moet Hennessy Louis
Vuitton).......................... 1,909
8 Pernod Ricard....................... 563
--------
2,472
--------
Broadcasting/Cable (0.1%):
4 Canal Plus.......................... 673
--------
Building Products (0.3%):
3 Imetal SA........................... 392
15 Lafarge SA.......................... 1,577
--------
1,969
--------
</TABLE>
Continued
66
<PAGE> 69
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FRANCE, CONTINUED:
Business Service (0.7%):
20 Compagnie Generale des Eaux......... $ 4,357
0 Havas SA (c)(e)..................... 0
--------
4,357
--------
Chemicals (0.6%):
11 L'Air Liquide....................... 1,800
40 Rhone-Poulenc SA.................... 2,239
--------
4,039
--------
Commercial Services (0.2%):
1 Addeco SA........................... 266
5 Sodexho SA.......................... 983
--------
1,249
--------
Construction (0.1%):
4 Bouygues............................ 763
--------
Defense (0.2%):
1 Sagem SA (c)........................ 506
18 Thomson CSF (c)..................... 671
--------
1,177
--------
Diversified (0.1%):
15 Lagardere SCA....................... 620
--------
Electrical & Electronic (1.0%):
18 Alcatel Alsthom..................... 3,688
4 Legrand SA.......................... 1,178
17 Schneider SA........................ 1,343
--------
6,209
--------
Energy (1.2%):
30 Elf Aquitane SA..................... 4,254
28 Total SA, Class B................... 3,666
--------
7,920
--------
Engineering (0.1%):
4 Compagnie Francaise d'Etudes et de
Construction Technip.............. 458
--------
Food & Household Products (0.2%):
4 Eridania Beghin-Say SA.............. 983
--------
Food Products & Services (0.4%):
8 Groupe Danone....................... 2,293
--------
Health & Personal Care (0.9%):
7 L'OREAL............................. 4,106
12 Sanofi SA........................... 1,354
--------
5,460
--------
Industrial Goods & Services (0.2%):
17 Michelin Class B, Registered........ 1,002
--------
Industrial Holding Company (0.5%):
17 Lyonnaise des Eaux SA............... 2,844
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FRANCE, CONTINUED:Insurance (0.7%):
36 AXA SA.............................. $ 4,085
--------
Leisure (0.2%):
4 Accor SA............................ 1,217
--------
Media (0.0%):
1 Pathe SA............................ 282
--------
Merchandising (1.0%):
4 Carrefour SA........................ 2,687
8 Etablissements Economiques du Casino
Guichard-Perrachon................ 664
3 Pinault-Printemps-Redoute SA........ 2,230
2 Promodes............................ 1,216
--------
6,797
--------
Office Equipment & Services (0.1%):
9 BIC................................. 654
--------
Oil & Gas (0.3%):
10 Compagnie de Saint Gobain........... 1,845
--------
Telecommunications -- Services and Equipment (1.0%):
89 France Telecom (c).................. 6,111
--------
Textile Products (0.0%):
2 Dollfus-Mieg & Cie (b).............. 65
--------
Total France........................ 73,012
--------
GERMANY (16.9%):
Airlines (0.2%):
54 Lufthansa AG........................ 1,354
--------
Automotive (1.9%):
73 Daimler-Benz AG (c)................. 7,206
2 Man AG.............................. 661
4 Volkswagen AG....................... 4,263
--------
12,130
--------
Banking (2.9%):
101 Bayer AG............................ 5,212
43 Bayerische Vereinsbank AG........... 3,690
74 Deutsche Bank AG.................... 6,272
71 Dresdner Bank AG.................... 3,804
--------
18,978
--------
Banking & Finance (0.4%):
38 Bayerische Hypotheken-und Wechsel-
Bank AG (c)....................... 2,422
--------
Building Products (0.1%):
8 Heidelberger Zement AG.............. 732
--------
Business Service (0.8%):
9 SAP AG.............................. 5,247
--------
</TABLE>
Continued
67
<PAGE> 70
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Chemicals (0.8%):
87 BASF AG............................. $ 4,122
15 Degussa AG.......................... 948
--------
5,070
--------
Conglomerates (1.6%):
32 Metro AG (c)........................ 1,936
3 Preussag AG......................... 992
70 VEBA AG............................. 4,794
4 Viag AG............................. 2,568
--------
10,290
--------
Construction (0.1%):
9 Hochtief AG......................... 445
--------
Consumer Goods & Services (0.2%):
7 Adidas AG (c)....................... 1,136
--------
Electrical & Electronic (0.8%):
79 Siemens AG.......................... 4,777
--------
Engineering (1.0%):
10 AGIV AG............................. 286
6 Bilfinger & Berger Bau AG........... 200
55 Mannesmann AG....................... 5,559
--------
6,045
--------
Health Care (0.2%):
11 Schering AG......................... 1,253
--------
Industrial Goods & Services (0.1%):
3 Carbon AG........................... 348
--------
Insurance (3.0%):
33 Allianz AG.......................... 10,955
1 Allianz AG (b)...................... 286
6 AMB Aachener und Muenchener
Beteiligungs...................... 675
2 AMB Aachener und Muenchener
Beteiligungs AG................... 223
4 CKAG Colonia Konzern AG............. 467
1 Muenchener Rueckversicherungs
Gesellschaft AG, Bearer Shares.... 250
11 Muenchener Rueckversicherungs
Gesellschaft AG, Registered
Shares............................ 5,598
--------
18,454
--------
Investment Company (0.2%):
17 Beiersdorf AG....................... 1,064
--------
Machinery & Equipment (0.2%):
9 Kloeckner-Humbolt-Deutz AG (b)...... 105
1 Linde AG............................ 890
--------
995
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Metals & Mining (0.2%):
9 Kugelfischer Georg Schaefer AG...... $ 138
5 Thyssen AG.......................... 1,250
--------
1,388
--------
Pharmaceuticals (0.2%):
25 Merck KGaA.......................... 1,098
--------
Retail (0.1%):
1 Karstadt AG (c)..................... 609
--------
Retail -- General Merchandise (0.0%):
5 Douglas Holding AG.................. 277
--------
Telecommunications (1.4%):
315 Deutsche Telekom AG (c)............. 8,485
--------
Telecommunications -- Services and Equipment (0.5%):
48 RWE AG.............................. 2,842
--------
Total Germany....................... 105,439
--------
GREECE (0.9%):
Agriculture (0.0%):
10 Hellenic Sugar Industry SA.......... 100
--------
Appliances & Household Products (0.0%):
2 Fourlis Brothers Corp............... 28
--------
Banking & Finance (0.4%):
9 Alpha Credit Bank................... 702
5 Commercial Bank of Greece SA........ 406
6 Ergo Bank SA........................ 489
5 National Bank of Greece SA.......... 667
--------
2,264
--------
Beverages & Tobacco (0.1%):
24 Hellenic Bottling Co. SA............ 736
--------
Building Products (0.1%):
14 Heracles General Cement Co. SA...... 335
2 Titan Cement Co..................... 148
--------
483
--------
Health Care (0.0%):
7 Athens Medical Care................. 130
--------
Insurance (0.0%):
5 Aspis Pronia (b).................... 64
--------
Miscellaneous Materials & Commodities (0.0%):
0 Silver & Baryte Ores Mining (e)..... 15
--------
Telecommunications (0.3%):
65 Hellenic Telecommunication
Organization...................... 1,674
2 Intracom SA......................... 73
--------
1,747
--------
</TABLE>
Continued
68
<PAGE> 71
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
GREECE, CONTINUED:
Textile Products (0.0%):
5 El. D. Mouzakis SA.................. $ 14
--------
Tobacco (0.0%):
4 Papastratos Cigarette............... 89
--------
Transportation & Shipping (0.0%):
8 Attica Enterprises.................. 117
--------
Total Greece........................ 5,787
--------
HONG KONG (0.5%):
Airlines (0.0%):
194 Cathay Pacific Airways.............. 136
--------
Banking (0.1%):
83 Bank of East Asia Ltd. (b).......... 90
16 HSBC Holdings PLC................... 382
--------
472
--------
Banking & Finance (0.0%):
38 Wing Lung Bank...................... 88
--------
Broadcasting & Publishing (0.0%):
95 Television Broadcasts Ltd........... 251
--------
Conglomerates (0.0%):
68 Swire Pacific Ltd., Class A......... 257
--------
Electrical Equipment (0.0%):
645 Elec & Eltek International Holdings
Ltd............................... 123
--------
Industrial Holding Company (0.2%):
145 Hutchison Whampoa Ltd............... 766
--------
Printing & Publishing (0.0%):
263 Oriental Press Group Ltd............ 24
--------
Real Estate (0.0%):
59 Sun Hung Kai Properties Ltd......... 251
--------
Telecommunications (0.2%):
391 Hong Kong Telecommunications Ltd.... 733
--------
Total Hong Kong..................... 3,101
--------
INDIA (0.5%):
Aluminum (0.0%):
16 Indian Aluminum Company Ltd. GDR
(b)............................... 23
--------
Automotive (0.1%):
45 Mahindra & Mahindra Ltd. GDR (b).... 192
44 Tata Engineering & Locomotive Co.,
Ltd. GDR.......................... 140
--------
332
--------
Building Products (0.0%):
22 Gujarat Ambuja Cements Ltd. GDR..... 110
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
INDIA, CONTINUED:
Chemicals (0.0%):
10 Indian Petrochemicals Corp., Ltd.
GDR............................... $ 30
95 Indo Gulf Fertilizers and Chemicals
Corp., Ltd. GDR................... 69
7 United Phosphorus Ltd. GDR.......... 18
--------
117
--------
Diversified (0.2%):
17 Grasim Industries Ltd. GDR.......... 111
35 ITC Ltd. GDR........................ 574
--------
685
--------
Hotels & Lodging (0.0%):
13 East India Hotels Ltd. GDR.......... 60
13 Indian Hotels Co., Ltd. GDR (b)..... 100
--------
160
--------
Manufacturing -- Capital Goods (0.0%):
30 Ashok Leyland Ltd. GDR.............. 65
38 India Cements Ltd. GDR.............. 51
18 Larsen & Toubro Ltd. GDR............ 172
--------
288
--------
Metals & Mining (0.0%):
20 Steel Authority of India Ltd. GDR... 50
--------
Pharmaceuticals (0.0%):
13 Ranbaxy Laboratories Ltd. GDR....... 202
--------
Textile Products (0.2%):
59 Arvind Mills Ltd. GDR............... 52
22 Bombay Dye & Manufacturing Co. GDR.. 33
70 Century Textile & Industries Ltd.
GDR............................... 74
21 Indian Rayon & Industries Ltd.
GDR............................... 69
8 Raymond Ltd. GDR.................... 21
59 Reliance Industries Ltd. GDR........ 388
--------
637
--------
Transportation (0.0%):
20 Bajaj Auto Ltd. GDR................. 256
--------
Transportation -- Shipping (0.0%):
21 Great Eastern Shipping Co. GDR...... 77
--------
Total India......................... 2,937
--------
IRELAND (0.5%):
Banking & Finance (0.4%):
170 Allied Irish Banks PLC.............. 2,452
--------
Beverages & Tobacco (0.0%):
77 James Crean PLC..................... 168
--------
Industrial Goods & Services (0.1%):
133 Smufit (Jefferson) Group............ 395
--------
</TABLE>
Continued
69
<PAGE> 72
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
IRELAND, CONTINUED:
Media (0.0%):
34 Independent Newspapers PLC.......... $ 180
--------
Total Ireland....................... 3,195
--------
ISRAEL (0.7%):
Agriculture (0.0%):
0 Mehadrin Ltd. (e)................... 15
--------
Banking (0.2%):
253 Bank Hapoalim Ltd. (b).............. 765
80 First International Bank of Israel
(1)............................... 125
20 First International Bank of Israel
(5)............................... 156
--------
1,046
--------
Chemicals (0.0%):
166 Israel Chemicals Ltd................ 211
--------
Computer Hardware (0.0%):
8 Scitex Corp., Ltd. (b).............. 102
--------
Computer Software (0.0%):
2 New Dimension Software Ltd. (b)..... 81
--------
Construction (0.0%):
55 Industrial Buildings Corp........... 92
--------
Diversified (0.1%):
6 Elco Holdings Ltd................... 31
5 IDB Holding Corp., Ltd.............. 128
1 Israel Corp., Ltd. (b).............. 47
7 Israel Land Development ADR (b)..... 132
--------
338
--------
Food Products & Services (0.1%):
8 Osem Investment Ltd................. 41
4 Super-Sol Ltd....................... 14
18 Super-Sol Ltd. ADR.................. 297
--------
352
--------
Insurance (0.0%):
9 Clal Insurance Enterprise
Holdings.......................... 93
--------
Investment Company (0.0%):
23 Makhteshim Agan Industries (b)...... 74
--------
Machinery & Equipment (0.0%):
15 Ormat Industries Ltd................ 20
--------
Materials (0.0%):
3 Israel Petrochemical Enterprises.... 14
--------
Oil & Gas (0.0%):
2 Delek Israel Fuel Corp., Ltd........ 88
--------
Paper Products (0.0%):
0 American Israeli Paper Mills (e).... 12
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
ISRAEL, CONTINUED:
Pharmaceuticals (0.1%):
5 Agis Industries Ltd. (b)............ $ 34
11 Teva Pharmaceutical ADR............. 394
--------
428
--------
Real Estate (0.0%):
0 Africa-Israel Investments Ltd.
(b)(e)............................ 17
4 Azorim Investments Development &
Construction...................... 29
11 Jerusalem Economic Corp., Ltd....... 57
1 Property & Building Corp., Ltd...... 73
--------
176
--------
Telecommunications (0.1%):
135 Bezeq Israeli Telecom Co............ 432
16 Koor Industries ADR................. 369
--------
801
--------
Telecommunications -- Equipment (0.1%):
15 ECI Telecommunications.............. 549
1 Gilat Satellite Networks Ltd. (b)... 37
2 Teledata Communications Ltd. (b).... 21
--------
607
--------
Total Israel........................ 4,550
--------
ITALY (10.7%):
Agriculture (0.1%):
306 Parmalat Finanziaria SpA (c)........ 624
--------
Auto Parts (0.0%):
90 Magneti Marelli SpA................. 197
--------
Automotive (0.6%):
754 Fiat SpA (c)........................ 3,299
179 Fiat SpA di Risp (Non-convertible)
(c)............................... 443
--------
3,742
--------
Banking (1.6%):
378 Banca Commerciale Italiana.......... 2,260
58 Banca Popolare di Milano (c)........ 464
315 Banco Ambrosiano Veneto SpA (c)..... 1,763
585 Credito Italiano SpA (c)............ 3,061
163 Istituto Bancario San Paolo di
Torino............................ 2,352
34 Riunione Adriatica di Sicurta SpA di
Risp.............................. 305
--------
10,205
--------
Banking & Finance (0.2%):
114 Mediobanca SpA...................... 1,449
--------
Broadcasting & Publishing (0.3%):
249 Mediaset SpA (c).................... 1,587
--------
</TABLE>
Continued
70
<PAGE> 73
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
ITALY, CONTINUED:
Building Products (0.1%):
32 Italcementi SpA..................... $ 289
15 Italcementi SpA RNC................. 66
--------
355
--------
Chemicals (0.2%):
998 Montedison SpA (c).................. 1,238
119 Montedison SpA di Risp.............. 92
130 Snia MPD SpA........................ 159
--------
1,489
--------
Engineering (0.0%):
145 Impregilo SpA....................... 128
--------
Financial Services (0.3%):
125 Istituto Mobiliare Italiano (c)..... 1,975
--------
Financial -- Banking (0.1%):
123 Banca Intesa SpA RNC................ 363
--------
Gas & Electric Utility (0.3%):
129 Edison SpA (c)...................... 1,032
144 Italgas SpA......................... 587
--------
1,619
--------
Insurance (1.8%):
210 Assicurazioni Generali.............. 6,836
789 Istituto Nazionale delle
Assicurazioni (c)................. 2,243
52 Milano Assicurazioni (b)(c)......... 201
84 Riuniune Adriatici de Sicurta SpA... 1,088
63 Societa Assicuratrice Industriale
(SAI) SpA......................... 802
--------
11,170
--------
Jewelry (0.0%):
54 Bulgari SpA......................... 281
--------
Office Equipment & Services (0.1%):
541 Olivetti SpA (b)(c)................. 805
--------
Oil & Gas (1.7%):
1,619 Ente Nazionale Idrocarburi SpA
(ENI)............................. 10,608
--------
Paper Products (0.1%):
34 Burgo (Cartiere) SpA................ 271
17 Reno de Medici SpA (b).............. 59
--------
330
--------
Printing & Publishing (0.1%):
28 Mandadori........................... 333
--------
Retail (0.1%):
39 La Rinascente SpA................... 384
--------
Steel (0.0%):
29 Falck Acciaierie & Ferriere Lombarde
SpA............................... 186
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
ITALY, CONTINUED:
Telecommunications (2.6%):
56 Sirti SpA........................... $ 303
1,362 Telecom Italia Mobile SpA di Risp
(Non-convertible) (b)............. 8,331
357 Telecom Italia SpA.................. 1,203
773 Telecom Italia SpA (c).............. 5,688
213 Telecom Italia SpA RNC.............. 1,030
--------
16,555
--------
Textile Products (0.2%):
359 Benetton Group SpA (c).............. 746
13 Marzotto (Gaetano) & Figli SpA...... 200
--------
946
--------
Tire & Rubber (0.2%):
373 Pirelli SpA (c)..................... 1,166
--------
Total Italy......................... 66,497
--------
JAPAN (17.5%):
Agriculture (0.0%):
25 Nippon Beet Sugar Manufacturing..... 35
--------
Airlines (0.1%):
115 Japan Airlines (b)(c)............... 320
--------
Aluminum (0.0%):
74 Nippon Light Metal Co............... 85
--------
Appliances & Household Products (1.1%):
164 Matsushita Electric Industrial Co.,
Ltd. (c).......................... 2,635
12 Pioneer Electronic Corp............. 229
136 Sanyo Electric Co................... 412
81 Sharp Corp. (c)..................... 656
31 Sony Corp. (c)...................... 2,669
--------
6,601
--------
Automotive (1.7%):
3 Autobacs Seven Co................... 86
72 Honda Motor Co., Ltd................ 2,562
159 Nissan Motor Co., Ltd. (c).......... 501
12 Sanden.............................. 81
23 Toyoda Automatic Loom Works (c)..... 406
289 Toyota Motor Corp................... 7,475
--------
11,111
--------
Banking (1.7%):
143 Asahi Bank Ltd. (c)................. 629
363 Bank of Tokyo-Mitsubishi (c)........ 3,837
211 Fuji Bank Ltd. (c).................. 941
175 Industrial Bank of Japan (c)........ 1,097
135 Mitsui Trust & Banking Co. (c)...... 318
304 Sakura Bank Ltd. (c)................ 789
244 Sumitomo Bank (c)................... 2,373
</TABLE>
Continued
71
<PAGE> 74
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Banking, continued:
136 Tokai Bank (c)...................... $ 749
26 Yamaguchi Bank...................... 333
--------
11,066
--------
Basic Industry (0.0%):
42 Sekisui Chemical Co., Ltd........... 215
--------
Beverages & Tobacco (0.2%):
35 Asahi Breweries Ltd. (c)............ 441
74 Kirin Brewery Co., Ltd.............. 699
36 Takara Shuzo........................ 149
--------
1,289
--------
Brewery (0.0%):
18 Sapporo Breweries................... 69
--------
Broadcasting & Publishing (0.0%):
18 Tokyo Broadcasting System........... 201
--------
Building Products (0.1%):
35 Chichibu Onoda Cement Co. (c)....... 63
7 Dianippon Screen Manufacturing Co.,
Ltd............................... 29
48 Nihon Cement Co., Ltd............... 96
32 Sanwa Shutter Corp.................. 141
19 Tostem Corp......................... 246
--------
575
--------
Chemicals (0.8%):
89 Asahi Chemical Industry Co., Ltd.... 321
32 Daicel Chemical Industries Ltd...... 68
49 Dainippon Ink & Chemicals, Inc...... 150
97 Denki Kagaku Kogyo K.K.............. 157
26 Ishihara Sangyo Kaisha (b).......... 36
32 Kaneka Corp......................... 168
24 Konica Corp......................... 108
13 Kureha Chemical Industry............ 30
119 Mitsubishi Chemical Corp. (c)....... 215
28 Mitsubishi Gas Chemical Co.......... 85
14 Nippon Shokubai K.K. Co............. 75
22 NOF Corp............................ 40
27 Shin-Etsu Chemical Co............... 474
70 Showa Denko K.K..................... 71
112 Sumitomo Chemical Co. (c)........... 345
65 Takeda Chemical Industries.......... 1,727
94 Toray Industries, Inc............... 488
72 Tosoh Corp.......................... 125
74 Ube Industries Ltd.................. 96
--------
4,779
--------
Commercial Services (0.0%):
3 Oyo Corp............................ 40
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Computer Software (0.0%):
4 CSK Corp............................ $ 79
3 Konami Co., Ltd..................... 65
--------
144
--------
Construction (0.2%):
26 Aoki Corp. (b)(c)................... 13
21 Daikyo, Inc. (b) (c)................ 24
37 Daiwa House Industry Co., Ltd....... 327
38 Haseko Corp. (b).................... 22
56 Kumagai Gumi Co., Ltd. (b)(c)....... 40
12 Misawa Homes (c).................... 33
18 Okumura Corp........................ 63
28 Penta-Ocean Construction Co.,
Ltd............................... 65
61 Sekisui House Ltd................... 472
59 Shimizu Corp. (c)................... 170
--------
1,229
--------
Consumer Goods & Services (0.1%):
35 Nippon Sheet Glass Co., Ltd......... 55
76 Renown, Inc. (b).................... 56
10 Shimano, Inc........................ 254
14 Tokyo Style Co., Ltd................ 137
50 Toto Ltd............................ 301
--------
803
--------
Cosmetics/Personal Care (0.1%):
29 Shisiedo Co., Ltd................... 329
--------
Data Processing & Reproduction (0.2%):
139 Fujitsu Ltd. (c).................... 1,462
2 Trans Cosmos, Inc................... 48
--------
1,510
--------
Distribution (0.1%):
164 Itochu Corp......................... 355
--------
Diversified (0.1%):
9 Amano Corp.......................... 79
7 Sanrio Co., Ltd. (b)................ 83
18 Yamaha Corp......................... 176
--------
338
--------
Electrical & Electronic (0.4%):
15 Casio Computer Co., Ltd............. 139
14 Kyocera Corp........................ 684
141 Mitsubishi Electric Corp............ 324
26 Nikon Corp.......................... 187
17 Omron Corp.......................... 260
10 Rohm Co............................. 1,027
--------
2,621
--------
</TABLE>
Continued
72
<PAGE> 75
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Electrical Equipment (0.1%):
12 Alps Electric Co., Ltd.............. $ 143
5 SMC Corp. (c)....................... 403
8 Taiyo Yuden Co., Ltd................ 85
--------
631
--------
Electronic Components/Instruments (0.7%):
7 Adventest Corp...................... 398
22 Fanuc Co., Ltd...................... 771
3 Hirose Electric 151
244 Hitachi Ltd. (c).................... 1,591
117 NEC Corp. (c)....................... 1,090
23 Yokogawa Electric Corp.............. 123
--------
4,124
--------
Electronics (0.0%):
9 Nitto Denko Corp. (c)............... 135
--------
Energy (0.1%):
169 Japan Energy Corp................... 179
110 Nippon Oil Co....................... 355
--------
534
--------
Engineering (0.2%):
13 Daito Trust Construction Co.,
Ltd............................... 98
36 Fujita Corp. (b) (c)................ 20
33 Hazama Corp. (b) (c)................ 19
49 Kajima Corp. (c).................... 134
10 Kandenko Co., Ltd................... 62
92 Kawasaki Heavy Industries........... 186
19 Kinden Corp......................... 228
19 Nishimatsu Construction............. 93
53 Obayashi Corp. (c).................. 225
17 Sato Kogyo.......................... 14
17 Toa Corp............................ 25
24 Toyo Engineering.................... 32
--------
1,136
--------
Entertainment (0.0%):
13 Toei................................ 41
1 Toho Co............................. 116
20 Tokyo Dome Corp..................... 108
--------
265
--------
Financial Services (0.7%):
18 Acom Co., Ltd....................... 855
108 Mitsubishi Trust & Banking Co.
(c)............................... 917
154 Nomura Securities Co. (c)........... 1,792
6 Orix Corp........................... 405
5 Uni-Charm........................... 178
--------
4,147
--------
Financial -- Banking (0.1%):
49 77th Bank Ltd. (c).................. 410
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Food & Household Products (0.2%):
42 Ajinomoto Co., Inc.................. $ 368
47 Kao Corp. (c)....................... 725
14 Nippon Meat Packers, Inc............ 171
10 Nissin Food Products................ 179
--------
1,443
--------
Food Products & Services (0.1%):
59 Daiei, Inc. (c)..................... 138
17 Kikkoman Corp....................... 89
27 Meiji Milk Products Co., Ltd........ 72
49 Nichirei Corp....................... 101
45 Nippon Suisan Kaisha Ltd. (b)....... 52
22 Yamazaki Baking Co., Ltd............ 195
--------
647
--------
Forest Products (0.2%):
38 Mitsubishi Paper Mills.............. 74
115 New Oji Paper Co. (c)............... 502
70 Nippon Paper Industries Co.......... 292
17 Sumitomo Forestry Co., Ltd.......... 95
--------
963
--------
Gas & Electric Utility (0.8%):
84 Kansai Electric Power Co., Inc...... 1,453
184 Osaka Gas Co........................ 472
48 Tohoku Electric Power............... 710
106 Tokyo Electric Power................ 2,070
204 Tokyo Gas Co., Ltd. (c)............. 454
--------
5,159
--------
Health & Personal Care (0.3%):
15 Chugai Pharmaceutical Co., Ltd...... 98
29 Kyowa Hakko Kogyo Co., Ltd.......... 115
21 Lion Corp........................... 71
34 Sankyo Co., Ltd..................... 774
44 Yamanouchi Pharmaceutical Co., Ltd.
(c)............................... 917
--------
1,975
--------
Hotels & Lodging (0.0%):
11 Fujita Kanko, Inc................... 90
--------
Industrial Goods & Services (0.6%):
59 Bridgestone Corp. (c)............... 1,393
64 Denso Corp. (c)..................... 1,061
75 Mitsui Engineering & Shipbuilding
Co., Ltd. (b)(c).................. 57
36 NGK Insulators Ltd.................. 313
18 NGK Spark Plug Co................... 153
52 Sumitomo Electric Industries........ 526
--------
3,503
--------
</TABLE>
Continued
73
<PAGE> 76
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Insurance (0.4%):
69 Mitsui Marine & Fire Insurance Co.,
Ltd............................... $ 347
41 Nichido Fire & Marine Insurance Co.,
Ltd............................... 212
45 Nippon Fire & Marine Insurance...... 184
58 Sumitomo Marine & Fire Insurance.... 324
122 Tokio Marine & Fire Insurance Co.... 1,254
--------
2,321
--------
Jewelry (0.1%):
40 Citizen Watch Co., Ltd.............. 330
9 Hoya Corp........................... 255
--------
585
--------
Leasing (0.1%):
45 Yamato Transport Co., Ltd. (c)...... 504
--------
Leisure (0.0%):
3 Namco (c)........................... 72
--------
Machinery & Equipment (0.6%):
18 Amada Co., Ltd...................... 88
25 Brother Industries Ltd.............. 93
45 Chiyoda Corp. (b)................... 55
14 Daifuku Co., Ltd.................... 52
18 Daikin Industries Ltd............... 116
14 Ebara Corp.......................... 124
61 Komatsu Ltd......................... 296
5 Komori Corp......................... 95
40 Koyo Seiko Co., Ltd................. 149
94 Kubota Corp......................... 217
9 Kurita Water........................ 106
6 Makino Milling Machine (c).......... 42
32 Minebea Co., Ltd.................... 318
232 Mitsubishi Heavy Industries, Ltd.... 877
6 Mori Seiki.......................... 73
58 Nigata Engineering Co., Ltd. (b).... 39
77 NSK Ltd............................. 313
49 NTN Corp............................ 154
20 Okuma Corp.......................... 91
34 Sumitomo Heavy Industries Ltd....... 78
5 Takuma Co., Ltd..................... 36
13 Tokyo Electron Ltd.................. 390
15 Tsubakimoto Chain................... 50
--------
3,852
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Manufacturing -- Capital Goods (0.2%):
27 Fujikura Ltd. (c)................... $ 120
16 Kokuyo Co., Ltd..................... 271
21 Makita Corp......................... 242
18 Murata Manufacturing Co., Ltd....... 583
10 Nippon Sharyo Ltd................... 24
22 Noritake Co., Ltd................... 103
--------
1,343
--------
Manufacturing -- Consumer Goods (0.5%):
65 Canon, Inc. (c)..................... 1,475
37 Fuji Photo Film Co., Ltd. (c)....... 1,288
6 Sega Enterprises.................... 104
--------
2,867
--------
Materials (0.0%):
9 Okamoto Industries, Inc............. 20
34 Sumitomo Osaka Cement Co., Ltd...... 44
--------
64
--------
Medical Supplies (0.0%):
24 Olympus Optical..................... 209
--------
Merchandising (0.4%):
31 ITO-Yokado Co., Ltd................. 1,458
23 JUSCO Co............................ 422
26 Marui Co., Ltd...................... 388
--------
2,268
--------
Metals & Mining (0.2%):
51 Furukawa Electric Co................ 172
73 Hitachi Zosen Corp.................. 118
66 Japan Steel Works (b)............... 81
78 Mitsubishi Materials Corp........... 159
33 Mitsui Mining & Smelting (c)........ 137
59 Mitsui Mining Co., Ltd. (b)......... 50
57 Seika Corp.......................... 88
39 Sumitomo Metal Mining Co. (c)....... 158
--------
963
--------
Office Equipment & Services (0.1%):
57 Dai Nippon Printing Co., Ltd........ 910
--------
Oil & Gas Exploration, Production & Services (0.1%):
9 Arabian Oil Co...................... 131
88 Asahi Glass Co., Ltd................ 475
61 Teikoku Oil Co...................... 189
--------
795
--------
Oil & Gas Transmission (0.0%):
75 Iwatani International Corp.......... 131
83 Mitsubishi Oil Co., Ltd. (b)........ 117
--------
248
--------
</TABLE>
Continued
74
<PAGE> 77
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Packaging (0.0%):
15 Toyo Seikan Kaisha.................. $ 183
--------
Pharmaceuticals (0.2%):
17 Dai-Ichi Pharmaceuticals............ 224
19 Eisai Co., Ltd...................... 259
40 Meiji Seika......................... 122
13 Shionogi & Co....................... 75
29 Taisho Pharmacuetical Co............ 541
--------
1,221
--------
Real Estate (0.2%):
98 Mitsubishi Estate Co. (c)........... 861
61 Mitsui Fudosan...................... 482
20 Tokyo Tatemono Co., Ltd. (b)........ 38
--------
1,381
--------
Restaurants (0.0%):
8 Skylark Co., Ltd.................... 79
--------
Retail (0.3%):
6 Aoyama Trading Co., Ltd............. 136
15 Credit Saison Co., Ltd. (c)......... 287
21 Daimura, Inc. (c)................... 55
12 Hankyu Department Stores............ 62
17 Isetan Co........................... 142
31 Mitsukoshi Ltd. (c)................. 89
52 Mycal Corp. (c)..................... 330
4 Shimachu Co......................... 66
26 Takashimaya Co...................... 196
13 Uny Co., Ltd........................ 211
--------
1,574
--------
Services (0.2%):
12 Secom 693
48 Toppan Printing Co., Ltd............ 513
--------
1,206
--------
Steel (0.4%):
67 Daido Steel Co., Ltd................ 120
53 Japan Metals & Chemicals (b) (c).... 75
246 Kawasaki Steel Corp................. 443
476 Nippon Steel Co. (c)................ 836
263 NKK Corp............................ 252
260 Sumitomo Metal Industries........... 418
18 Tokyo Steel......................... 93
--------
2,237
--------
Storage (0.0%):
14 Mitsubishi Logistics Corp........... 125
34 Mitsui-Soko Co., Ltd................ 102
--------
227
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Telecommunications (1.3%):
10 Nippon Comsys Corp. (c)............. $ 115
1 Nippon Telegraph & Telephone
Corp.............................. 7,880
--------
7,995
--------
Textile Products (0.2%):
191 Kanebo Ltd. (b) (c)................. 158
53 Kurabo Industries................... 69
31 Kuraray Co., Ltd.................... 264
27 Mitsubishi Rayon Co., Ltd........... 75
33 Nisshinbo Industries................ 132
15 Onward Kashiyama Co., Ltd........... 188
56 Teijin Ltd.......................... 169
108 Toyobo Ltd.......................... 142
48 Unitika Ltd. (b).................... 36
--------
1,233
--------
Transportation & Shipping (0.3%):
0 East Japan Railway Co. (e).......... 1,334
30 Kamigumi Co., Ltd................... 125
93 Kawasaki Kisen Kaisha Ltd........... 161
81 Mitsui OSK Lines, Ltd............... 138
78 Nippon Yusen Kabushiki Kaisha (c)... 264
12 Seino Transportation................ 67
--------
2,089
--------
Transportation -- Road & Railroad (0.4%):
91 Hankyu Corp......................... 373
30 Keihin Electric Express Railway
(c)............................... 87
232 Kinki Nippon Railway (c)............ 1,088
62 Nippon Express Co., Ltd............. 332
48 Odakyu Electric Railway............. 147
57 Tobu Railway Co., Ltd............... 151
72 Tokyu Corp.......................... 218
--------
2,396
--------
Wholesale & International Trade (0.3%):
130 Marubeni Corp....................... 259
112 Mitsubishi Corp..................... 694
106 Mitsui & Co. (c).................... 573
58 Sumitomo Corp....................... 279
--------
1,805
--------
Wholesale Distribution (0.0%):
14 Nagase & Co......................... 51
--------
Wire & Cable Products (0.0%):
19 Tokyo Rope MFG...................... 24
--------
Total Japan......................... 109,579
--------
</TABLE>
Continued
75
<PAGE> 78
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
LUXEMBOURG (0.0%):
Aluminum (0.0%):
9 Hindalco Industries Co.............. $ 148
--------
MALAYSIA (0.2%):
Agriculture (0.0%):
118 Highlands & Lowlands Berhad......... 84
45 IOI Corp. Berhad.................... 22
--------
106
--------
Automotive (0.0%):
281 Tan Chong Motors.................... 51
--------
Building Products (0.0%):
10 Golden Plus Holdings................ 2
9 Jaya Tiasa Holdings Berhad.......... 11
198 Pan-Malaysia Cement Works Berhad.... 41
--------
54
--------
Construction (0.0%):
28 YTL Corp. Berhad.................... 21
--------
Diversified (0.0%):
24 Berjaya Group Berhad................ 3
231 Malaysian Mosaics Berhad............ 48
28 Mulph International................. 3
63 Multi-Purpose Holdings Berhad....... 16
--------
70
--------
Engineering (0.0%):
25 United Engineers (Malaysia) Ltd..... 10
--------
Financial Services (0.0%):
72 Malayan Banking Berhad.............. 72
40 MBF Capital Berhad.................. 7
69 Rashid Hussain Berhad............... 34
--------
113
--------
Food Products & Services (0.1%):
54 Nestle (Malaysia) Berhad............ 245
--------
Forest Products (0.0%):
376 Land & General Berhad............... 43
--------
Leisure (0.0%):
26 Berjaya Land Berhad................. 14
--------
Miscellaneous (0.0%):
290 Johan Holdings Berhad............... 32
--------
Real Estate (0.0%):
13 Malaysian Resources................. 3
--------
Steel (0.0%):
156 Malayawata Steel Berhad............. 38
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
MALAYSIA, CONTINUED:
Telecommunications (0.1%):
41 Technology Resources Industries
Berhad............................ $ 28
115 Tenaga Nasional Berhad.............. 139
--------
167
--------
Total Malaysia...................... 967
--------
MEXICO (0.6%):
Beverages & Tobacco (0.1%):
11 Compania Cervezas Unidas SA ADR..... 226
17 Grupo Continental SA................ 53
24 Grupo Modelo SA, Series C........... 199
--------
478
--------
Brewery (0.0%):
0 Fomento Economico Mexica UBD (e).... 6
--------
Building Products (0.0%):
10 Apasco SA de CV..................... 52
8 Cemex SA de CV, Series A............ 31
2 Cemex SA de CV, Series B............ 10
2 Cemex SA de CV, Series CPO.......... 9
2 Cemex SA, Series B.................. 2
7 Tolmex SA de CV, Series B2 (b)...... 31
3 Tubos de Acero de MexiCo............ 39
--------
174
--------
Diversified (0.1%):
32 ALFA SA de CV, Class A.............. 133
10 Carso Global Telecom, Series A-1.... 30
6 Desc SA de CV, Series A............. 27
10 Desc SA de CV, Series B............. 51
29 Grupo Carso SA de CV, Series A-1.... 117
--------
358
--------
Financial Services (0.0%):
35 Grupo Financiero Banamex Accival SA
de CV, Class B (b)................ 66
149 Grupo Financiero Bancomer (b)....... 55
14 Grupo Financiero Inbursa SA de CV,
Class B (b)....................... 22
--------
143
--------
Food & Household Products (0.0%):
85 Kimberly-Clark de Mexico SA de CV,
Class A........................... 295
--------
Food Products & Services (0.0%):
22 Empresas La Moderna SA de CV (b).... 127
--------
Industrial Goods & Services (0.0%):
76 Grupo Industrial Bimbo SA de CV,
Series A.......................... 151
--------
</TABLE>
Continued
76
<PAGE> 79
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
MEXICO, CONTINUED:
Merchandising (0.1%):
33 Cifra SA de CV, Series C............ $ 46
209 Cifra SA de CV, Series V............ 306
--------
352
--------
Metals & Mining (0.0%):
33 Grupo Mexico SA, Series B........... 91
25 Industrias Penoles SA, Series CP.... 79
--------
170
--------
Retail -- General Merchandise (0.0%):
39 Controladora Comercial Mexicana SA
de CV............................. 33
--------
Retail -- Stores/Catalog (0.0%):
70 El Puerto de Liverpool SA de CV,
Series 1.......................... 100
35 Grupo Elektra SA.................... 34
--------
134
--------
Steel (0.0%):
26 Altos Hornos de Mexico SA (b)....... 29
10 Hylsamex SA......................... 32
--------
61
--------
Telecommunications (0.3%):
12 Grupo Televisa SA, Series CPO (b)... 226
300 Telefonos de Mexico SA, Series L.... 715
--------
941
--------
Transportation -- Shipping (0.0%):
30 Vitro SA............................ 64
--------
Wholesale Distribution (0.0%):
15 Grupo Casa Autrey SA de CV.......... 10
--------
Total Mexico........................ 3,497
--------
NETHERLANDS (2.6%):
Appliances & Household Products (0.2%):
15 Philips Electronics NV.............. 1,299
--------
Banking (0.3%):
67 ABN Amro Holding NV................. 1,563
--------
Beverages & Tobacco (0.1%):
15 Heineken NV......................... 571
--------
Broadcasting & Publishing (0.1%):
43 Elsevier NV......................... 644
--------
Chemicals (0.2%):
4 Akzo Nobel.......................... 989
--------
Energy (0.8%):
86 Royal Dutch Petroleum............... 4,756
--------
Financial Services (0.4%):
39 ING Groep NV........................ 2,547
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
NETHERLANDS, CONTINUED:
Food Products & Services (0.3%):
27 Unilever NV CVA..................... $ 2,158
--------
Services (0.2%):
23 Koninklijke Royal PTT Nederland
NV................................ 866
23 TNT Post Group NV (b)............... 575
--------
1,441
--------
Total Netherlands................... 15,968
--------
NEW ZEALAND (0.2%):
Beverages & Tobacco (0.0%):
125 Lion Nathan Ltd..................... 279
--------
Forest Products (0.0%):
88 Carter Holt Harvey.................. 76
21 Fletcher Challenge Forestry (b)..... 12
42 Fletcher Challenge Paper............ 47
--------
135
--------
Telecommunications (0.2%):
235 Telecom Corp. of New Zealand Ltd.... 967
--------
Total New Zealand................... 1,381
--------
NORWAY (0.8%):
Banking (0.0%):
61 Christiania Bank og Kreditkasse..... 256
--------
Engineering (0.0%):
8 Kvaerner ASA........................ 256
--------
Entertainment (0.0%):
36 NCL Holdings ASA (b)................ 177
--------
Forest Products (0.0%):
6 Norske Skogsindustrier ASA.......... 173
--------
Insurance (0.1%):
54 Storebrand ASA (b).................. 478
--------
Manufacturing -- Consumer Goods (0.1%):
16 Orkla ASA, Series A................. 373
--------
Medical Equipment & Supplies (0.0%):
43 Hafslund ASA, Class A............... 172
--------
Metals & Mining (0.0%):
15 Elkem ASA........................... 175
--------
Oil & Gas (0.1%):
11 Petroleum Geo-Services ASA (b)...... 351
--------
Oil & Gas Exploration, Production & Services (0.4%):
9 Aker ASA, Class A (b)............... 134
16 Aker ASA, Class B................... 247
41 Norsk Hydro ASA..................... 1,799
--------
2,180
--------
Pharmaceuticals (0.0%):
42 Nycomed Amersham PLC, Series B...... 309
--------
</TABLE>
Continued
77
<PAGE> 80
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
NORWAY, CONTINUED:
Transportation & Shipping (0.1%):
10 Bona Shipholding (b)................ $ 73
17 Leif Hoegh & Co. ASA................ 254
--------
327
--------
Total Norway........................ 5,227
--------
PHILIPPINES (0.7%):
Banking (0.0%):
29 Security Bank Corp. (b)............. 13
35 Union Bank Philippines.............. 14
--------
27
--------
Banking & Finance (0.1%):
88 Metropolitan Bank & Trust Co........ 516
58 Philippine National Bank (b)........ 68
--------
584
--------
Beverages & Tobacco (0.1%):
266 San Miguel Corp., Class B........... 351
--------
Building Products (0.0%):
744 DMCI Holdings, Inc. (b)............. 23
2,109 Southeast Asia Cement Holdings, Inc.
(b)............................... 18
--------
41
--------
Diversified (0.0%):
367 Ayala Corp., Series B............... 95
--------
Electronic Components/Instruments (0.0%):
149 Ionics Circuit, Inc................. 47
--------
Food Products & Services (0.0%):
597 Universal Robina Corp............... 61
--------
Homebuilders (0.0%):
1,817 C&P Homes, Inc. (b)................. 91
--------
Oil & Gas Exploration, Production & Services (0.1%):
3,954 Petron Corp. (b).................... 417
--------
Real Estate (0.2%):
1,396 Ayala Land, Inc..................... 402
1,903 Filinvest Land, Inc. (b)............ 80
3,567 SM Prime Holdings, Inc.............. 565
--------
1,047
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
PHILIPPINES, CONTINUED:
Telecommunications (0.2%):
132 Manila Electric Co., Class B........ $ 349
43 Philipino Telephone Corp............ 975
--------
1,324
--------
Total Philippines................... 4,085
--------
PORTUGAL (1.0%):
Banking (0.4%):
25 Banco Comercial Portugues SA........ 711
22 Banco Espirito Santo e Commerical de
Lisboa SA, Registered............. 662
23 Banco Internacional do Funchal SA... 278
2 Banco Pinto & Sotto Mayor........... 40
17 BPI-SGPS SA, Registered............. 546
--------
2,237
--------
Beverages & Tobacco (0.0%):
11 UNICER-Uniao Cervejeira SA.......... 253
--------
Building Products (0.0%):
3 Cimpor-Cimentos de Portugal, SGPS
SA................................ 109
--------
Food & Household Products (0.2%):
23 Estabelecimentos Jeronimo Martins &
Filho SA.......................... 1,105
--------
Forest Products (0.1%):
8 Soporcel-Sociedade Portuguesa de
Celulose SA (b)................... 331
--------
Industrial Holding Company (0.1%):
10 Sonae Investimentos SA.............. 563
--------
Insurance (0.0%):
11 Companhia de Seguros Tranquilidade,
Registered........................ 300
--------
Retail -- General Merchandise (0.1%):
14 Modelo Continente-Sociedade Gestora
de Participacoes Sociais SA....... 373
--------
Telecommunications (0.1%):
16 Portugal Telecom SA................. 864
--------
Total Portugal...................... 6,135
--------
SINGAPORE (0.2%):
Automotive (0.0%):
20 Cycle & Carriage.................... 49
--------
Banking (0.0%):
41 Oversea-Chinese Banking Corp.,
Ltd............................... 140
--------
Conglomerates (0.0%):
326 United Industries................... 94
--------
Electrical Equipment (0.0%):
4 Creative Technology Ltd. (b)........ 49
--------
</TABLE>
Continued
78
<PAGE> 81
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SINGAPORE, CONTINUED:
Health Care (0.0%):
51 Parkway Holdings.................... $ 88
--------
Machinery & Equipment (0.0%):
54 Van Der Horst Ltd. (b).............. 10
--------
Real Estate (0.1%):
55 City Developments Ltd............... 153
89 DBS Land Ltd........................ 73
76 First Capital Corp.................. 26
124 United Overseas Land Ltd............ 67
--------
319
--------
Retail -- Stores/Catalog (0.0%):
45 Metro Holdings...................... 27
--------
Steel (0.0%):
47 NatSteel Ltd........................ 46
--------
Telecommunications (0.1%):
269 Goldtron Ltd. (c)................... 20
334 Singapore Telecommunications Ltd.
(c)............................... 473
--------
493
--------
Transportation & Shipping (0.0%):
468 Chuan Hup Holdings Ltd.............. 100
347 Neptune Orient Lines Ltd. (b)....... 120
--------
220
--------
Transportation -- Shipping (0.0%):
41 Sembawang Marine & Logistics........ 22
--------
Total Singapore..................... 1,557
--------
SOUTH AFRICA (0.6%):
Banking & Finance (0.1%):
11 Nedcor Ltd.......................... 239
34 Standard Bank....................... 146
--------
385
--------
Brewery (0.1%):
16 South African Breweries Ltd......... 333
--------
Computer Hardware (0.0%):
30 Dimension Data Holdings Ltd. (b).... 164
--------
Diversified (0.1%):
9 Anglovaal Industries Ltd............ 10
11 Barlow Ltd.......................... 56
11 Imperial Holdings Ltd............... 111
18 Malbak Ltd.......................... 12
22 Rembrandt Group Ltd................. 137
22 Smith (C.G.) Ltd.................... 62
--------
388
--------
Engineering (0.0%):
31 Murray & Roberts Holdings Ltd....... 32
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SOUTH AFRICA, CONTINUED:
Entertainment (0.0%):
55 Sun International (South Africa)
Ltd............................... $ 19
--------
Financial Services (0.0%):
29 Amalgamated Banks of South Africa... 179
--------
Financial -- Banking (0.0%):
3 Investec Group Ltd.................. 133
--------
Food & Household Products (0.0%):
5 Tiger Oats Ltd...................... 42
--------
Forest Products (0.0%):
11 Nampak Ltd.......................... 27
13 Sappi Ltd. (b)...................... 47
--------
74
--------
Industrial Goods & Services (0.0%):
16 African Oxygen Ltd.................. 28
4 Anglo American Industrial Corp.,
Ltd............................... 60
--------
88
--------
Insurance (0.1%):
105 Firstrand Ltd....................... 162
12 Liberty Life Association of Africa
Ltd............................... 235
33 Metropolitan Life Ltd............... 92
--------
489
--------
Materials (0.0%):
1 Anglo American Coal Corp., Ltd...... 65
--------
Metals (0.0%):
1 Anglogold Ltd....................... 35
186 Iscor Ltd........................... 35
4 Western Areas Gold Mining (b)....... 14
--------
84
--------
Metals & Mining (0.2%):
6 Anglo American Corp. of South Africa
Ltd............................... 200
1 Anglo American Gold Investment Co.,
Ltd............................... 19
41 Billiton PLC........................ 81
17 DeBeers Centenary AG................ 305
5 Driefontein Consolidated Ltd........ 27
8 Gencor Ltd.......................... 13
9 Gold Fields Ltd. (b)................ 38
2 Gold Fields of South Africa Ltd..... 17
3 Gold Shelf.......................... 11
8 Johnnies Industrial Corp., Ltd...... 70
8 Randfontein Estates Gold Mining Co.
(b)............................... 18
7 Rustenburg Platinum Holdings Ltd.... 76
4 Samancor Ltd........................ 17
--------
892
--------
</TABLE>
Continued
79
<PAGE> 82
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SOUTH AFRICA, CONTINUED:
Oil & Gas (0.0%):
6 Engen Ltd........................... $ 17
--------
Oil & Gas Exploration, Production & Services (0.0%):
22 Sasol Ltd........................... 125
--------
Pharmaceuticals (0.0%):
3 South African Druggists Ltd......... 14
--------
Printing & Publishing (0.0%):
8 Nasionale Pers Beperk, Series N..... 55
--------
Retail -- General Merchandise (0.0%):
2 Ellerine Holdings Ltd............... 14
7 New Clicks Holdings Ltd............. 8
--------
22
--------
Retail -- Stores/Catalog (0.0%):
13 Pepkor Ltd.......................... 47
--------
Telecommunications -- Services and Equipment (0.0%):
18 M Web Holdings Ltd. (b)............. 65
--------
Total South Africa.................. 3,712
--------
SPAIN (4.7%):
Agriculture (0.1%):
12 Azucarera Ebro Agricolas (b)........ 346
--------
Banking (1.0%):
45 Banco Central Hispanoamericano SA... 1,423
135 Banco Santander SA.................. 3,457
62 Corporacion Bancaria de Espana SA... 1,393
--------
6,273
--------
Banking & Finance (0.7%):
87 Banco Bilbao Vizcaya SA............. 4,457
--------
Beverages & Tobacco (0.1%):
12 El Aguila SA (b).................... 113
26 Tabacalera SA....................... 533
--------
646
--------
Building Products (0.0%):
7 Uralita SA.......................... 103
--------
Chemicals (0.0%):
38 Ercros SA (b)....................... 48
--------
Construction (0.1%):
7 Dragados Y Construcciones SA........ 225
7 Fomento de Constucciones y Contratas
SA................................ 372
--------
597
--------
Energy (0.4%):
40 Repsol SA........................... 2,224
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SPAIN, CONTINUED:
Forest Products (0.0%):
5 Empresa Nacional de Celulosas SA.... $ 86
24 Sarrio SA (b) (c)................... 115
--------
201
--------
Gas & Electric Utility (0.9%):
37 Empresa Nacional de Electricidad
SA................................ 524
132 Endesa SA........................... 2,894
116 Iberdrola SA........................ 1,892
40 Union Electric Fenosa SA............ 515
--------
5,825
--------
Industrial Holding Company (0.1%):
3 Corporacion Financiara Alba......... 374
--------
Insurance (0.0%):
8 Corporacion Mapfre.................. 274
--------
Oil & Gas Exploration, Production & Services (0.3%):
19 Gas Natural SDG..................... 1,375
5 Viscofan Industria Navarra de
Envolturas Celulosicas SA......... 219
--------
1,594
--------
Real Estate (0.1%):
13 Inmobiliaria Metro.................. 391
5 Vallehermoso SA..................... 184
--------
575
--------
Steel (0.0%):
2 Acerinox SA......................... 264
--------
Telecommunications (0.9%):
124 Telefonica de Espana................ 5,734
--------
Total Spain......................... 29,535
--------
SWEDEN (1.7%):
Automotive (0.1%):
17 Volvo AB, Series B.................. 495
--------
Banking & Finance (0.2%):
29 Skandiaviska Enskilda Banken, Class
A................................. 490
11 Svenska Handlesbanken, Class A...... 529
--------
1,019
--------
Engineering (0.1%):
32 ABB AB, A Shares.................... 447
11 ABB AB, B Shares.................... 154
5 Skanska AB, Series B................ 236
--------
837
--------
</TABLE>
Continued
80
<PAGE> 83
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWEDEN, CONTINUED:
Forest Products (0.1%):
15 Stora Kopparbergs Bergslags
Aktiebolag, Series A.............. $ 238
6 Stora Kopparbergs Bergslags
Aktiebolag, Series B.............. 91
16 Svenska Cellulosa AB, Series B...... 401
--------
730
--------
Insurance (0.1%):
27 Skandia Forsakrings AB.............. 383
--------
Machinery & Equipment (0.1%):
13 Atlas Copco AB, Series A............ 350
--------
Manufacturing -- Consumer Goods (0.1%):
28 Electrolux AB, Series B............. 474
--------
Metals & Mining (0.0%):
6 SKF AB, Series B.................... 109
8 Trelleborg AB, Series B............. 105
--------
214
--------
Office Equipment & Services (0.0%):
5 Esselte AB, Series B................ 107
--------
Pharmaceuticals (0.3%):
80 Astra AB, A Shares.................. 1,627
26 Astra AB, B Shares.................. 524
--------
2,151
--------
Real Estate (0.0%):
18 Fastighetspartner NF AB (b)......... 19
--------
Retail -- General Merchandise (0.1%):
14 Hennes & Mauritz AB, Series B....... 890
--------
Telecommunications (0.5%):
95 Telefonaktiebolaget LM Ericsson,
Series B.......................... 2,778
--------
Tobacco (0.0%):
20 Swedish Match AB.................... 67
--------
Total Sweden........................ 10,514
--------
SWITZERLAND (2.0%):
Chemicals (0.1%):
4 Ciba Specialty Chemicals AG......... 454
--------
Commercial Services (0.0%):
0 Kuoni Reisen Holding (e)............ 50
0 Societe Generale de Surveillance
Holdings SA (e)................... 110
--------
160
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWITZERLAND, CONTINUED:
Diversified (0.1%):
0 Alusuisse-Lonza Holding AG,
Registered (b)(e)................. $ 190
0 SFR ABB AG (e)...................... 384
--------
574
--------
Fertilizers (0.0%):
1 Societe Suisse pour la
Microelectronique et l'Horlogerie
AG................................ 192
--------
Financial Services (0.5%):
6 CS Holding AG, Registered........... 1,266
5 Union Bank of Switzerland AG,
Registered........................ 1,857
--------
3,123
--------
Food Products & Services (0.3%):
1 Nestle SA, Registered............... 1,947
--------
Insurance (0.2%):
0 Swiss Reinsurance Co., Registered
(e)............................... 986
--------
Pharmaceuticals (0.8%):
2 Novartis AG, Bearer................. 2,652
0 Roche Holding AG (e)................ 593
0 Roche Holding AG, Bearer (e)........ 1,473
--------
4,718
--------
Restaurants (0.0%):
0 Moevenpick Holding, Bearer (e)...... 25
--------
Retail -- Special Line (0.0%):
0 Jelmoli Holdings (e)................ 58
--------
Transportation (0.0%):
1 Danzas Holding AG, Registered....... 134
--------
Total Switzerland................... 12,371
--------
THAILAND (0.6%):
Airlines (0.0%):
136 Thai Airways International Public
Co., Ltd., Foreign Registered
Shares............................ 114
--------
Auto Parts (0.0%):
75 Thairung Union Car Public Co........ 23
--------
Automotive (0.0%):
109 Thai Manufacturing (b).............. 41
--------
Banking (0.1%):
410 Bangkok Bank PLC, Foreign Registered
Shares (c)........................ 505
348 Thai Farmers Bank, Foreign
Registered Shares (c)............. 306
--------
811
--------
Beverages & Tobacco (0.0%):
6 Serm Suk Co., Ltd. (b).............. 40
--------
</TABLE>
Continued
81
<PAGE> 84
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
THAILAND, CONTINUED:
Broadcasting/Cable (0.0%):
164 International Broadcasting Corp.,
Ltd. (b).......................... $ 109
--------
Building Products (0.1%):
52 Siam Cement, Foreign Registered
Shares (b)........................ 251
73 Tipco Asphalt Co., Ltd. (b)......... 83
--------
334
--------
Computer Hardware (0.1%):
24 K.R. Precision Public Co. (b)....... 16
82 Shinawatra Computer PLC (b) (c)..... 298
--------
314
--------
Construction (0.0%):
200 Italian-Thai Development Public,
Ltd. (b).......................... 102
--------
Cosmetics/Personal Care (0.0%):
57 I.C.C. International PLC............ 50
--------
Electronic Components/Instruments (0.0%):
6 Hana Microelectronics Co., Ltd.
(b)............................... 14
26 Hana Microelectronics Co., Ltd.,
Foreign Registered Shares (b)..... 66
--------
80
--------
Oil & Gas (0.2%):
113 PTT Exploration & Production (b)
(c)............................... 855
--------
Printing & Publishing (0.0%):
128 Nation Multimedia Group PLC (b)..... 27
107 Nation Multimedia Group, Foreign
Registered Shares (b)............. 36
--------
63
--------
Restaurants (0.0%):
31 Pizza Co., Ltd...................... 92
--------
Telecommunications (0.1%):
30 Advanced Information Services PLC,
Foreign Registered Shares......... 119
1,358 TelecomAsia Corp., Foreign
Registered Shares (b) (c)......... 393
102 TelecomAsia Corp., PLC (b).......... 23
--------
535
--------
Total Thailand...................... 3,563
--------
TURKEY (0.7%):
Appliances & Household Products (0.0%):
3,387 Arcelik AS.......................... 159
--------
Automotive (0.0%):
236 Otosan Otomobil Sanayii AS.......... 127
1,953 Tofas Turk Otomobil Fabrikas AS
(b)............................... 82
--------
209
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
TURKEY, CONTINUED:
Banking & Finance (0.2%):
1,937 Akbank TAS.......................... $ 63
7,356 Turkiye Garanti Bankasi AS (b)...... 337
--------
400
--------
Beverages & Tobacco (0.0%):
776 Ege Biracilik ve Malt Sanayi AS..... 92
404 Ericiyas Biracilik ve Malt
Sanayii........................... 61
--------
153
--------
Building Products (0.1%):
4,234 Akcansa Cimento AS.................. 130
983 Cimentas AS (b)..................... 55
999 Cimsa Cimento Sanayi ve Ticaret
AS................................ 51
1,322 Trakya Cam Sanayii.................. 55
746 Turk Sise ve Cam Fabrikalari AS..... 25
--------
316
--------
Chemicals (0.0%):
20 Petkim Petrokimya Holding AS........ 11
--------
Diversified (0.0%):
165 Alarko Holding...................... 45
469 Ihlas Holding....................... 64
153 Koc Holding AS...................... 30
--------
139
--------
Electrical & Electronic (0.0%):
94 Raks Electronik Ev Aletleri......... 35
--------
Electronics (0.0%):
719 Vestel Elektronik Sanayi (b)........ 96
--------
Financial Services (0.3%):
19,610 Turkiye Is Bankasi AS, Class C 791
3 Turkiye Is Bankasi, Class B (b)..... 8
17,547 Yapi ve Kredi Bankasi AS............ 448
--------
1,247
--------
Food Products & Services (0.0%):
1,079 Tat Konserve Sanayii AS............. 36
--------
Forest Products (0.0%):
569 Kartonsan Karton Sanayi ve Ticaret
AS................................ 44
--------
Industrial Goods & Services (0.0%):
455 Kordsa Kord Bezi Sanayi ve Ticaret
AS................................ 73
--------
Manufacturing -- Capital Goods (0.0%):
1,549 Turk Demir Dokum Fabrikalari AS..... 26
--------
Metals & Mining (0.0%):
959 Eregli Demir ve Celik Fabrikalari
TAS (b)........................... 149
799 Izmir Demir Celik Sanayi AS (b)..... 7
--------
156
--------
</TABLE>
Continued
82
<PAGE> 85
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
TURKEY, CONTINUED:
Oil & Gas (0.0%):
888 Turcas Petrolculuk AS............... $ 44
--------
Oil & Gas Exploration, Production & Services (0.0%):
395 Aygaz AS............................ 59
109 Petrol Ofisi AS..................... 28
131 Tupras Turkiye Petrol Rafinerileri
AS (b)............................ 21
--------
108
--------
Pharmaceuticals (0.0%):
263 Eczacibasi Ilac Sanayi Ve Ti (b).... 14
--------
Telecommunications (0.1%):
91 Cukurova Elektrik AS................ 259
293 Netas-Northern Elektrik
Telekomunikasyon AS (b)........... 78
--------
337
--------
Textile Products (0.0%):
746 Aksa Akrilik Kimya Sanayii AS....... 23
--------
Tire & Rubber (0.0%):
931 Brisa Bridgestone Sabanci Lastik
SAN, ve Tic AS.................... 45
1,233 Goodyear Lastikleri TAS............. 67
--------
112
--------
Transportation (0.0%):
1,419 Turk Hava Yollari AO (b)............ 149
--------
Wholesale Distribution (0.0%):
247 Migros Turk TAS..................... 241
--------
Total Turkey........................ 4,128
--------
UNITED KINGDOM (8.7%):
Aerospace & Military Technology (0.2%):
81 British Aerospace PLC............... 623
43 Rolls-Royce PLC..................... 179
35 Smiths Industries PLC............... 485
--------
1,287
--------
Airlines (0.1%):
57 British Airways PLC................. 609
--------
Appliances & Household Products (0.0%):
24 EMI Group PLC....................... 215
--------
Auto Parts (0.0%):
56 LucasVarity PLC..................... 226
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Banking (0.9%):
73 Abbey National PLC.................. $ 1,293
75 Barclays PLC........................ 2,151
29 HSBC Holdings PLC................... 731
49 HSBC Holdings PLC (Hong Kong
Dollars).......................... 1,186
26 Royal Bank of Scotland Group PLC.... 451
--------
5,812
--------
Beverages & Tobacco (0.4%):
135 Diageo PLC.......................... 1,603
50 Scottish & Newcastle PLC............ 707
--------
2,310
--------
Brewery (0.1%):
36 Bass PLC 667
--------
Broadcasting/Cable (0.1%):
62 British Sky Broadcasting Group
PLC............................... 444
--------
Building Products (0.1%):
30 Marley PLC.......................... 55
10 Meyer International PLC............. 60
50 Rugby Group PLC..................... 93
96 Tarmac PLC.......................... 172
--------
380
--------
Chemicals (0.1%):
33 Imperial Chemical Industries PLC.... 532
--------
Conglomerates (0.2%):
107 B.A.T. Industries PLC............... 1,065
13 Lonrho Africa PLC................... 16
19 Lonrho PLC (b)...................... 89
--------
1,170
--------
Construction (0.0%):
44 Taylor Woodrow PLC.................. 148
26 Wilson Connolly Holdings PLC........ 59
--------
207
--------
Electrical & Electronic (0.3%):
50 Bowthorpe PLC....................... 440
57 Electrocomponents PLC............... 463
100 General Electric Co., PLC........... 862
--------
1,765
--------
Energy (0.6%):
237 British Petroleum Co., PLC.......... 3,449
--------
Engineering (0.0%):
25 Barratt Developments PLC............ 109
--------
</TABLE>
Continued
83
<PAGE> 86
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Financial Services (0.5%):
193 Lloyds TSB Group PLC................ $ 2,700
55 St. James's Place Capital PLC....... 299
--------
2,999
--------
Food & Household Products (0.3%):
42 Cadbury Schweppes PLC............... 655
112 Unilever PLC........................ 1,198
--------
1,853
--------
Food Products & Services (0.1%):
69 J Sainsbury PLC..................... 613
--------
Forest Products (0.0%):
14 Arjo Wiggins Appleton............... 46
--------
Health & Personal Care (0.8%):
129 Glaxo Wellcome PLC.................. 3,886
30 Zeneca PLC.......................... 1,306
--------
5,192
--------
Industrial Holding Company (0.1%):
28 BICC Group PLC...................... 62
117 BTR PLC, Series A................... 331
56 Hanson PLC.......................... 340
--------
733
--------
Insurance (0.5%):
56 Commercial Union PLC................ 1,051
33 Legal and General Group PLC......... 354
65 Prudential Corp. PLC................ 852
53 Royal & Sun Alliance Insurance Group
PLC............................... 537
23 Sedwick Group PLC................... 48
13 Willis Corroon Group................ 33
--------
2,875
--------
Leisure (0.2%):
58 Granada Group PLC................... 1,064
26 Ladbroke Group PLC.................. 141
31 Rank Group PLC...................... 166
--------
1,371
--------
Machinery & Equipment (0.1%):
47 GKN PLC............................. 593
--------
Merchandising (0.0%):
43 Safeway PLC......................... 282
--------
Metals & Mining (0.1%):
89 British Steel PLC................... 196
72 English China Clays PLC............. 248
43 RTZ Corp., PLC, Registered.......... 479
--------
923
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Miscellaneous Materials & Commodities (0.0%):
37 Elementis 1998 PLC.................. $ 94
--------
Oil & Gas Exploration, Production & Services (0.2%):
160 BG PLC.............................. 924
50 LASMO PLC 200
51 Pilkington PLC...................... 94
--------
1,218
--------
Paper Products (0.0%):
41 Rexam PLC 179
--------
Pharmaceuticals (0.4%):
196 SmithKline Beecham PLC.............. 2,380
--------
Printing & Publishing (0.2%):
11 De La Rue Ltd....................... 55
15 Pearson............................. 270
34 Reed International PLC.............. 303
79 Reuters Group....................... 902
--------
1,530
--------
Real Estate (0.2%):
19 British Land Co., PLC............... 193
49 Land Securities PLC................. 752
--------
945
--------
Real Estate Investment Trust (0.1%):
23 Peninsular & Oriental Steam
Navigation Co..................... 330
--------
Retail -- General Merchandise (0.1%):
19 Kingfisher.......................... 313
--------
Retail -- Stores/Catalog (0.6%):
46 Boots Co., PLC...................... 757
41 Great Universal Stores PLC.......... 541
90 Marks & Spencer PLC................. 820
23 Next PLC............................ 195
117 Tesco PLC........................... 1,142
21 Thorn PLC........................... 81
--------
3,536
--------
Telecommunications (1.0%):
249 British Telecommunications PLC...... 3,061
94 Cable & Wireless PLC................ 1,149
154 Centrica PLC(b)..................... 260
50 National Power PLC.................. 471
127 Vodaphone Group PLC................. 1,606
--------
6,547
--------
Textile Products (0.0%):
24 Courtaulds Textiles PLC............. 118
--------
</TABLE>
Continued
84
<PAGE> 87
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Transportation -- Road & Railroad (0.1%):
17 Railtrack Group PLC................. $ 420
--------
Total United Kingdom................ 54,272
--------
UNITED STATES (0.0%):
Diversified (0.0%):
2 U.S. Industries, Inc................ 60
--------
VENEZUELA (0.4%):
Banking (0.0%):
22 Banco Venezuela Credito ADR......... 165
--------
Financial Services (0.0%):
37 Mercantil Servicios ADR............. 193
--------
Food Products & Services (0.1%):
107 Mavesa SA ADR....................... 340
--------
Home Furnishings (0.0%):
49 Ceramica Carabobo ADR............... 106
--------
Industrial Goods & Services (0.0%):
19 Siderurgica Venezuela ADR........... 121
--------
Paper Products (0.0%):
192 Venepal S.A.C.A. ADR................ 75
--------
Telecommunications (0.3%):
55 Compania Anonima Nacional Telefonos
de Venezuela...................... 1,384
--------
Textile Products (0.0%):
15 Mantex S.A.C.A. ADR................. 186
40 Sudamtex de Venezuela ADR........... 88
--------
274
--------
Total Venezuela..................... 2,658
--------
Total Common Stocks 589,391
--------
OPALS (0.6%):
TAIWAN (0.6%):
538 Morgan Stanley Composite Index,
Taiwan OPALS B.................... 3,847
--------
Total OPALS 3,847
--------
PREFERRED STOCKS (1.8%):
AUSTRALIA (0.2%):
Media (0.2%):
181 News Corp., Ltd..................... 1,280
--------
BRAZIL (0.4%):
Banking (0.1%):
21,519 Banco Bradesco SA................... 181
241 Banco Itau SA....................... 136
--------
317
--------
Beverages & Tobacco (0.0%):
151 Companhia Cervejaria Brahma......... 93
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
BRAZIL, CONTINUED:
Electric Utility (0.0%):
1,704 Cia Energetica de Sao Paolo......... $ 50
3,761 Companhia Energetica de Minas
Gerais............................ 116
1,712 Grasul Preferred -- B Share (b)..... 2
--------
168
--------
Forest Products (0.0%):
90 Sadia-Concordia SA.................. 52
--------
Oil & Gas Exploration, Production & Services (0.0%):
740 Petroleo Brasileiro SA.............. 138
--------
Steel (0.2%):
57 Companhia Vale do Rio Doce, Series
A................................. 1,152
--------
Telecommunications (0.1%):
3,900 Telecomunicacoes Brasileiras SA..... 430
441 Telecomunicacoes de Sao Paolo SA.... 105
--------
535
--------
Total Brazil........................ 2,455
--------
GERMANY (1.1%):
Automotive (0.1%):
1 Volkswagen AG....................... 927
--------
Building Products (0.0%):
1 Dyckerhoff AG....................... 207
--------
Business Service (0.8%):
6 SAP AG.............................. 4,180
--------
Gas & Electric Utility (0.2%):
35 RWE AG.............................. 1,498
--------
Total Germany....................... 6,812
--------
GREECE (0.0%):
Telecommunications (0.0%):
9 Intracom SA......................... 304
--------
ITALY (0.1%):
Automotive (0.1%):
218 Fiat SpA (b)........................ 543
--------
Total Preferred Stocks 11,394
--------
RIGHTS -- FOREIGN SECURITIES (0.0%):
AUSTRALIA (0.0%):
7 Resolute Limited (b)(e)............. 0
--------
AUSTRIA (0.0%):
36 Bank Austria AG (b)(e).............. 0
--------
BRAZIL (0.0%):
Steel (0.0%):
11 Vale do Rio Doce Bond Rights
(b)(e)............................ 0
--------
</TABLE>
Continued
85
<PAGE> 88
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
RIGHTS -- FOREIGN SECURITIES, CONTINUED:
BRAZIL, CONTINUED:
Telecommunications (0.0%):
9 Telecommunicacoes de Sao Paulo SA
(b)(e)............................ $ 0
--------
21 Telecommunicacoes de Sao Paulo SA,
Preferred (b)(e).................. 0
--------
CHILE (0.0%):
2 Telecom Chile ADR (b)............... 1
--------
GERMANY (0.0%):
73 Daimler-Benz (b).................... 82
32 Metro AG (b)........................ 1
--------
83
--------
GREECE (0.0%):
9 Alpha Credit Bank (b)............... 15
--------
MEXICO (0.0%):
8 Cemex SA de CV, Series A (b)(e)..... 0
2 Cemex SA de CV, Series B (b)(e)..... 0
--------
THAILAND (0.0%):
32 International Broadcasting (b)...... 6
--------
Total Rights - Foreign Securities 105
--------
U.S. TREASURY OBLIGATIONS (0.1%):
U.S. Treasury Bills (0.1%):
$ 500 9/17/98 (d)......................... 495
--------
Total U.S. Treasury Obligations 495
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
REPURCHASE AGREEMENTS (2.4%):
UNITED STATES (2.4%):
$15,035 State Street Bank, 5.00%, 7/1/98
(Collateralized by $15,035 U.S.
Treasury Bonds, 5.00%, 8/15/14,
market value $15,339)............. $ 15,035
--------
Total Repurchase Agreements 15,035
--------
SHORT-TERM SECURITIES HELD AS COLLATERAL (14.8%):
Repurchase Agreements (14.8%):
2,361 Lehman Brothers, 6.47%,
7/1/98(Collateralized by $2,479
Media One Group Bonds, 0.00%,
10/5/98, market value $2,479)..... 2,361
90,000 Paine Webber, 6.40%, 7/1/98
(Collateralized by $89,832 various
Corporate Bonds, 4.00% -- 9.75%,
7/15/98 -- 12/31/49, market value
$94,500).......................... 90,000
--------
Total Short-Term Securities Held as Collateral 92,361
--------
Total (Cost $579,126) (a) $712,628
--------
</TABLE>
- ------------
Percentages indicated are based on net assets of $624,227.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax reporting of
approximately $120. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 201,067
Unrealized depreciation..................................... (67,685)
----------
Net unrealized appreciation................................. $ 133,382
==========
</TABLE>
(b) Non-income producing securities.
(c) A portion of this security was loaned as of June 30, 1998.
(d) Serves as collateral for futures contracts.
(e) Rounded to less than a thousand.
Continued
86
<PAGE> 89
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
International Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
CURRENT
NUMBER OPENING MARKET
OF POSITIONS VALUE
CONTRACTS CONTRACT TYPE (000) (000)
- --------- -------------------------------------------- --------- -------
<C> <S> <C> <C>
52 Long Nikkei 225, September 1998 Futures $ 3,947 $ 4,079
29 Long EuroTop 100, September 1998 Futures 8,148 8,442
------- -------
$12,095 $12,521
======= =======
</TABLE>
<TABLE>
<S> <C>
ADR American Depository Receipt
GDR Global Depository Receipt
</TABLE>
At June 30, 1998, the Fund's open forward currency contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT CONTRACT MARKET APPRECIATION/
CURRENCY DATE PRICE AMOUNT VALUE VALUE (DEPRECIATION)
-------- -------- --------- -------- -------- ------- --------------
<S> <C> <C> <C> <C> <C> <C>
Long Contracts:
European Currency Unit............. 9/18/98 $ 0.9036 $ 6,200 $ 6,862 $ 6,813 $ (49)
Japanese Yen....................... 9/9/98 138.003 467,000 3,384 3,398 14
------- ------- -----
Total Long Contracts............... $10,246 $10,211 $ (35)
======= ======= =====
</TABLE>
See notes to financial statements.
87
<PAGE> 90
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1998
(Amounts in Thousands, except per share amounts)
<TABLE>
<CAPTION>
ASSET ALLOCATION INCOME EQUITY
FUND FUND
---------------- -------------
<S> <C> <C>
ASSETS:
Investments, at value....................................... $275,068 $ 996,472
Repurchase agreements, at cost.............................. 26,533 32,051
-------- ----------
Total (cost $264,919; $549,687; $914,982; $617,512;
$708,580; respectively)................................... 301,601 1,028,523
Cash........................................................ -- 1
Interest and dividends receivable........................... 1,549 1,983
Receivable for capital shares issued........................ 440 640
Receivable from brokers for investments sold................ -- 1,408
Prepaid expenses and other assets........................... 1 5
-------- ----------
TOTAL ASSETS................................................ 303,591 1,032,560
-------- ----------
LIABILITIES:
Dividends payable........................................... 522 789
Payable for capital shares redeemed......................... 52 175
Payable for return of collateral received for securities on
loan...................................................... 28,905 52,967
Payable to brokers for investments purchased................ 2,988 1,351
Payable for variation margin on futures contracts........... 43 --
Options written, at value (premiums received $97)........... -- --
Accrued expenses and other payables:
Investment advisory fees................................ 126 588
Administration fees..................................... 16 135
12b-1 fees.............................................. 100 157
Other................................................... 183 230
-------- ----------
TOTAL LIABILITIES........................................... 32,935 56,392
-------- ----------
NET ASSETS:
Capital..................................................... 224,327 447,045
Undistributed (distributions in excess) of net investment
income.................................................... 27 162
Accumulated undistributed net realized gains (losses) from
investment, options and futures transactions.............. 9,438 50,125
Net unrealized appreciation (depreciation) from investments,
futures and options....................................... 36,864 478,836
-------- ----------
NET ASSETS.................................................. $270,656 $ 976,168
======== ==========
NET ASSETS:.................................................
Fiduciary............................................... $105,243 $ 691,878
Class A................................................. 50,456 117,682
Class B................................................. 114,957 165,813
Class C................................................. -- 795
-------- ----------
Total....................................................... $270,656 $ 976,168
======== ==========
OUTSTANDING UNITS OF BENEFICIAL INTEREST (SHARES):
Fiduciary............................................... 7,627 28,742
Class A................................................. 3,652 4,895
Class B................................................. 8,290 6,886
Class C................................................. -- 33
======== ==========
Total....................................................... 19,569 40,556
======== ==========
Net Asset Value :
Fiduciary Offering and redemption price per share....... $ 13.80 $ 24.07
======== ==========
Class A Redemption price per share...................... $ 13.81 $ 24.04
======== ==========
Maximum sales charge.................................. 4.50% 4.50%
======== ==========
Maximum offering price per share (100%/(100%-maximum
sales charge) of net asset value adjusted to nearest
cent)................................................ $ 14.46 $ 25.17
======== ==========
Class B Offering price per share (a).................... $ 13.87 $ 24.08
======== ==========
Class C Offering price per share (a).................... $ 24.08
==========
</TABLE>
- ------------
(a) Redemption price per Class B and Class C share varies based on length of
time shares are held.
See notes to financial statements.
88
<PAGE> 91
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1998
(Amounts in Thousands, except per share amounts)
<TABLE>
<CAPTION>
EQUITY INDEX VALUE GROWTH LARGE COMPANY
FUND FUND VALUE FUND
- ------------ ------------ -------------
<S> <C> <C>
$1,286,410 $740,240 $820,097
72,011 46,166 83,871
---------- -------- --------
1,358,421 786,406 903,968
-- 1 3,937
1,250 713 1,164
1,775 637 66
4,686 -- 3,647
4 3 3
---------- -------- --------
1,366,136 787,760 912,785
---------- -------- --------
707 179 666
183 7 13
114,880 49,140 83,126
4,321 -- 2,598
158 106 --
-- -- 78
99 435 499
119 99 115
323 36 17
568 183 171
---------- -------- --------
121,358 50,185 87,283
---------- -------- --------
780,024 525,615 586,115
88 53 42
20,942 42,561 43,938
443,724 169,346 195,407
---------- -------- --------
$1,244,778 $737,575 $825,502
========== ======== ========
$ 671,422 $630,340 $792,649
218,518 80,500 15,699
351,624 25,501 17,154
3,214 1,234 --
========== ======== ========
$1,244,778 $737,575 $825,502
========== ======== ========
24,719 46,646 47,474
8,049 5,964 936
12,959 1,903 1,019
118 92 --
========== ======== ========
45,845 54,605 49,429
========== ======== ========
$ 27.16 $ 13.51 $ 16.70
========== ======== ========
$ 27.15 $ 13.50 $ 16.77
========== ======== ========
4.50% 4.50% 4.50%
========== ======== ========
$ 28.43 $ 14.14 $ 17.56
========== ======== ========
$ 27.13 $ 13.40 $ 16.84
========== ======== ========
$ 27.14 $ 13.47
========== ========
</TABLE>
89
<PAGE> 92
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1998
(Amounts in Thousands, except per share amounts)
<TABLE>
<CAPTION>
DISCIPLINED VALUE LARGE COMPANY
FUND GROWTH FUND
----------------- -------------
<S> <C> <C>
ASSETS:
Investments, at value....................................... $ 708,291 $2,064,976
Repurchase agreements, at cost.............................. 50,417 97,697
---------- ----------
Total (cost $650,635; $1,443,904; $1,037,010; $132,255;
$579,126; respectively)................................... 758,708 2,162,673
Cash........................................................ 203 1
Foreign currency, at value (cost $2,408).................... -- --
Interest and dividends receivable........................... 672 1,975
Receivable for capital shares issued........................ 75 882
Receivable from brokers for investments sold................ 75,046 86,533
Net receivable for variation margin on futures contracts.... -- --
Tax reclaim receivable...................................... -- --
Prepaid expenses and other assets........................... 4 8
---------- ----------
TOTAL ASSETS................................................ 834,708 2,252,072
---------- ----------
LIABILITIES:
Dividends payable........................................... 499 --
Payable for capital shares redeemed......................... 25 213
Payable for return of collateral received for securities on
loan...................................................... 59,486 177,147
Payable to brokers for investments purchased................ 79,792 81,870
Net payable for variation margin on futures contracts....... -- --
Payable for forward foreign currency contracts.............. -- --
Accrued expenses and other payables:
Investment advisory fees................................ 415 1,160
Administration fees..................................... 96 265
12b-1 fees.............................................. 30 257
Other................................................... 156 532
---------- ----------
TOTAL LIABILITIES........................................... 140,499 261,444
---------- ----------
NET ASSETS:
Capital..................................................... 501,412 1,095,916
Undistributed (distributions in excess) of net investment
income.................................................... 1 --
Accumulated undistributed net realized gains (losses) from
investment, options and futures transactions.............. 84,723 175,943
Net unrealized appreciation (depreciation) from investments,
futures, options and translation of assets and liabilities
in foreign currencies..................................... 108,073 718,769
---------- ----------
NET ASSETS.................................................. $ 694,209 $1,990,628
========== ==========
NET ASSETS:
Fiduciary............................................... $ 634,672 $1,510,521
Class A................................................. 29,443 199,052
Class B................................................. 30,094 280,563
Class C................................................. -- 492
---------- ----------
Total....................................................... $ 694,209 $1,990,628
========== ==========
OUTSTANDING UNITS OF BENEFICIAL INTEREST (SHARES):
Fiduciary............................................... 37,560 66,523
Class A................................................. 1,739 8,534
Class B................................................. 1,786 12,341
Class C................................................. -- 22
========== ==========
Total....................................................... 41,085 87,420
========== ==========
Net Asset Value:
Fiduciary Offering and redemption price per share......... $ 16.90 $ 22.71
========== ==========
Class A Redemption price per share........................ $ 16.93 $ 23.32
========== ==========
Maximum sales charge.................................... 4.50% 4.50%
========== ==========
Maximum offering price per share (100%/(100%-maximum
sales charge) of net asset value adjusted to nearest
cent).................................................. $ 17.73 $ 24.42
========== ==========
Class B Offering price per share (a)...................... $ 16.85 $ 22.73
========== ==========
Class C Offering price per share (a)...................... $ 22.57
==========
</TABLE>
- ------------
(a) Redemption price per Class B and Class C share varies based on length of
time shares are held.
See notes to financial statements.
90
<PAGE> 93
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1998
(Amounts in Thousands, except per share amounts)
<TABLE>
<CAPTION>
GROWTH SMALL INTERNATIONAL
OPPORTUNITIES CAPITALIZATION EQUITY INDEX
FUND FUND FUND
- ------------- -------------- -------------
<S> <C> <C>
$1,130,547 $144,046 $605,232
116,612 13,799 107,396
---------- -------- --------
1,247,159 157,845 712,628
1 10 --
-- -- 2,389
427 51 2,290
490 82 65
110,456 2,386 71
-- 27 --
-- -- 981
5 -- 3
---------- -------- --------
1,358,538 160,401 718,427
---------- -------- --------
-- -- --
78 8 10
205,962 14,537 92,361
94,767 440 594
-- -- 24
-- -- 35
622 86 273
142 17 84
91 11 15
310 60 804
---------- -------- --------
301,972 15,159 94,200
---------- -------- --------
780,252 105,263 496,208
-- -- 1,864
66,165 14,054 (7,735)
210,149 25,925 133,890
---------- -------- --------
$1,056,566 $145,242 $624,227
========== ======== ========
$ 868,901 $114,951 $586,741
95,647 21,634 24,060
90,930 8,567 13,307
1,088 90 119
---------- -------- --------
$1,056,566 $145,242 $624,227
========== ======== ========
38,597 9,542 32,647
4,278 1,800 1,337
4,242 727 768
49 7 7
========== ======== ========
47,166 12,076 34,759
========== ======== ========
$ 22.51 $ 12.05 $ 17.97
========== ======== ========
$ 22.36 $ 12.02 $ 17.99
========== ======== ========
4.50% 4.50% 4.50%
========== ======== ========
$ 23.41 $ 12.59 $ 18.84
========== ======== ========
$ 21.44 $ 11.79 $ 17.33
========== ======== ========
$ 22.42 $ 11.97 $ 17.91
========== ======== ========
</TABLE>
91
<PAGE> 94
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
ASSET ALLOCATION INCOME EQUITY EQUITY INDEX VALUE GROWTH LARGE COMPANY
FUND FUND FUND FUND VALUE FUND
---------- ---------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......................... $ 6,541 $ 1,924 $ 1,531 $ 1,683 $ 2,012
Dividend income......................... 1,547 19,180 15,277 8,118 15,254
Income from securities lending.......... 59 119 210 131 154
---------- ---------- ---------- ----------- ------------
Total Income............................ 8,147 21,223 17,018 9,932 17,420
---------- ---------- ---------- ----------- ------------
EXPENSES:
Investment advisory fees................ 1,370 6,571 2,978 4,485 5,638
Administration fees..................... 345 1,454 1,626 993 1,248
12b-1 fees (Class A).................... 140 346 544 216 58
12b-1 fees (Class B).................... 739 1,219 2,522 161 132
12b-1 fees (Class C).................... -- 4 6 2 --
Custodian and accounting fees........... 72 62 170 70 59
Legal and audit fees.................... 12 28 34 23 24
Trustees' fees and expenses............. 3 14 17 10 12
Transfer agent fees..................... 258 439 981 168 94
Registration and filing fees............ 78 166 159 129 49
Printing costs.......................... 23 87 108 62 72
Other................................... 7 27 22 9 22
---------- ---------- ---------- ----------- ------------
Total expenses before waivers........... 3,047 10,417 9,167 6,328 7,408
Less waivers............................ (421) (99) (2,774) (62) (17)
---------- ---------- ---------- ----------- ------------
Net Expenses............................ 2,626 10,318 6,393 6,266 7,391
---------- ---------- ---------- ----------- ------------
Net Investment Income................... 5,521 10,905 10,625 3,666 10,029
---------- ---------- ---------- ----------- ------------
REALIZED / UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS, OPTIONS AND FUTURES:
Net realized gains (losses) from
investment, option and future
transactions.......................... 15,512 76,585 26,070 72,571 71,328
Net change in unrealized appreciation
(depreciation) from investments,
options and futures................... 19,656 98,696 216,751 92,392 66,164
---------- ---------- ---------- ----------- ------------
Net realized/unrealized gains (losses)
from investments, options and
futures............................... 35,168 175,281 242,821 164,963 137,492
---------- ---------- ---------- ----------- ------------
Change in net assets resulting from
operations............................ $ 40,689 $ 186,186 $ 253,446 $ 168,629 $ 147,521
========== ========== ========== =========== ============
</TABLE>
See notes to financial statements.
92
<PAGE> 95
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
GROWTH SMALL INTERNATIONAL
DISCIPLINED LARGE COMPANY OPPORTUNITIES CAPITALIZATION EQUITY INDEX
VALUE FUND GROWTH FUND FUND FUND FUND
----------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................... $ 821 $ 606 $ 821 $ 577 $ 513
Dividend income..................... 10,584 18,607 4,269 557 11,478
Income from securities lending...... 251 252 593 100 399
Foreign tax withholding............. -- -- -- -- (1,356)
-------- -------- -------- ------- -------
Total Income.............. 11,656 19,465 5,683 1,234 11,034
-------- -------- -------- ------- -------
EXPENSES:
Investment advisory fees............ 4,759 12,024 6,492 902 2,791
Administration fees................. 1,053 2,661 1,437 200 831
12b-1 fees (Class A)................ 99 553 236 68 58
12b-1 fees (Class B)................ 254 1,953 639 55 114
12b-1 fees (Class C)................ -- 1 1 -- --
Custodian and accounting fees....... 69 119 127 40 570
Legal and audit fees................ 20 49 26 9 18
Organization costs.................. -- -- -- -- 2
Trustees' fees and expenses......... 9 26 14 2 8
Transfer agent fees................. 150 881 491 102 132
Registration and filing fees........ 41 165 107 50 71
Printing costs...................... 58 164 88 17 47
Other............................... 21 44 30 9 12
-------- -------- -------- ------- -------
Total expenses before waivers....... 6,533 18,640 9,688 1,454 4,654
Less waivers........................ (28) (158) (67) (57) (17)
-------- -------- -------- ------- -------
Net Expenses........................ 6,505 18,482 9,621 1,397 4,637
-------- -------- -------- ------- -------
Net Investment Income (Loss)........ 5,151 983 (3,938) (163) 6,397
-------- -------- -------- ------- -------
REALIZED / UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS, OPTIONS, FUTURES
AND FOREIGN CURRENCIES:
Net realized gains (losses) from
investment, option, future, and
foreign currency transactions..... 141,237 278,531 140,625 21,421 172
Net change in unrealized
appreciation (depreciation) from
investments, options, futures and
translation of assets and
liabilities in foreign
currencies........................ 9,794 237,485 99,487 1,800 43,167
-------- -------- -------- ------- -------
Net realized/unrealized gains
(losses) from investments,
options, futures and foreign
currency.......................... 151,031 516,016 240,112 23,221 43,339
-------- -------- -------- ------- -------
Change in net assets resulting from
operations........................ $156,182 $516,999 $236,174 $23,058 $49,736
======== ======== ======== ======= =======
</TABLE>
See notes to financial statements.
93
<PAGE> 96
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND INCOME EQUITY FUND EQUITY INDEX FUND
------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)....... $ 5,521 $ 4,173 $ 10,905 $ 9,950 $ 10,625 $ 9,130
Net realized gains (losses) from
investment, option and future
transactions..................... 15,512 15,867 76,585 63,053 26,070 20,871
Net change in unrealized
appreciation (depreciation) from
investments, options and
futures.......................... 19,656 4,463 98,696 89,271 216,751 140,765
-------- -------- --------- --------- ---------- ---------
Change in net assets resulting from
operations........................... 40,689 24,503 186,186 162,274 253,446 170,766
-------- -------- --------- --------- ---------- ---------
DISTRIBUTIONS TO FIDUCIARY
SHAREHOLDERS:
From net investment income......... (2,881) (2,678) (9,093) (8,549) (7,794) (7,178)
In excess of net investment
income........................... -- (11) -- (14) -- --
From net realized gains from
investment transactions.......... (10,063) (2,959) (62,899) (10,510) (14,824) (3,288)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income......... (1,102) (764) (1,122) (948) (1,688) (899)
In excess of net investment
income........................... -- (3) -- (2) -- --
From net realized gains from
investment transactions.......... (3,738) (974) (9,117) (1,743) (3,454) (420)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income......... (1,516) (731) (521) (453) (1,052) (780)
In excess of net investment
income........................... -- (3) -- (1) -- --
From net realized gains from
investment transactions.......... (6,134) (1,129) (10,250) (1,424) (5,722) (629)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income......... -- -- (2) -- (3) --
From net realized gains from
investment transactions.......... -- -- (11) -- (1) --
-------- -------- --------- --------- ---------- ---------
Change in net assets from shareholder
distributions........................ (25,434) (9,252) (93,015) (23,644) (34,538) (13,194)
-------- -------- --------- --------- ---------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........ 116,110 74,038 175,771 113,454 453,171 372,043
Proceeds from shares issued in
conversion....................... -- 37,254 70,389 283,942 -- --
Dividends reinvested............... 16,312 6,840 36,266 11,938 16,587 6,593
Cost of shares redeemed............ (47,271) (49,880) (206,930) (135,743) (191,744) (180,134)
-------- -------- --------- --------- ---------- ---------
Change in net assets from share
transactions......................... 85,151 68,252 75,496 273,591 278,014 198,502
-------- -------- --------- --------- ---------- ---------
Change in net assets................... 100,406 83,503 168,667 412,221 496,922 356,074
NET ASSETS:
Beginning of period................ 170,250 86,747 807,501 395,280 747,856 391,782
-------- -------- --------- --------- ---------- ---------
End of period...................... $270,656 $170,250 $ 976,168 $ 807,501 $1,244,778 $ 747,856
======== ======== ========= ========= ========== =========
SHARE TRANSACTIONS:
Issued............................. 8,804 6,114 7,871 6,001 18,855 20,262
Issued in conversion............... -- 3,076 3,342 14,913 -- --
Reinvested......................... 1,278 573 1,690 656 719 360
Redeemed........................... (3,607) (4,071) (9,166) (7,141) (8,031) (9,830)
-------- -------- --------- --------- ---------- ---------
Change in shares....................... 6,475 5,692 3,737 14,429 11,543 10,792
======== ======== ========= ========= ========== =========
</TABLE>
See notes to financial statements.
94
<PAGE> 97
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
VALUE GROWTH FUND LARGE COMPANY VALUE FUND DISCIPLINED VALUE FUND
------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)...... $ 3,666 $ 3,251 $ 10,029 $ 12,627 $ 5,151 $ 8,249
Net realized gains (losses) from
investment, option and future
transactions.................... 72,571 42,586 71,328 17,493 141,237 59,778
Net change in unrealized
appreciation (depreciation) from
investments, options and
futures......................... 92,392 51,518 66,164 126,134 9,794 36,525
--------- --------- ---------- --------- --------- ---------
Change in net assets resulting from
operations.......................... 168,629 97,355 147,521 156,254 156,182 104,552
--------- --------- ---------- --------- --------- ---------
DISTRIBUTIONS TO FIDUCIARY
SHAREHOLDERS
From net investment income........ (3,380) (2,906) (9,741) (12,228) (4,991) (7,822)
From net realized gains from
investment transactions......... (54,060) (36,353) (41,719) (47,388) (91,826) (53,221)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........ (243) (316) (177) (209) (169) (274)
From net realized gains from
investment transactions......... (6,125) (5,893) (1,000) (904) (4,398) (2,285)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income........ (2) (16) (70) (69) (7) (89)
From net realized gains from
investment transactions......... (1,479) (992) (700) (410) (3,742) (1,855)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income........ --(a) -- -- -- -- --
From net realized gains from
investment transactions......... --(a) -- -- -- -- --
--------- --------- ---------- --------- --------- ---------
Change in net assets from shareholder
distributions....................... (65,289) (46,476) (53,407) (61,208) (105,133) (65,546)
--------- --------- ---------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....... 244,292 236,686 145,236 165,729 153,275 107,311
Proceeds from shares issued in
conversion...................... -- -- -- 63,222 -- 48,296
Dividends reinvested.............. 30,601 39,472 24,049 26,644 54,080 32,360
Cost of shares redeemed........... (129,318) (70,246) (148,173) (238,407) (170,905) (179,880)
--------- --------- ---------- --------- --------- ---------
Change in net assets from share
transactions........................ 145,575 205,912 21,112 17,188 36,450 8,087
--------- --------- ---------- --------- --------- ---------
Change in net assets.................. 248,915 256,791 115,226 112,234 87,499 47,093
NET ASSETS:
Beginning of period............... 488,660 231,869 710,276 598,042 606,710 559,617
--------- --------- ---------- --------- --------- ---------
End of period..................... $ 737,575 $ 488,660 $ 825,502 $ 710,276 $ 694,209 $ 606,710
========= ========= ========== ========= ========= =========
SHARE TRANSACTIONS:
Issued............................ 19,945 22,826 9,198 12,629 9,189 7,390
Issued in conversion.............. -- -- -- 4,655 -- 3,333
Reinvested........................ 2,642 4,071 1,586 2,051 3,435 2,299
Redeemed.......................... (10,452) (6,738) (9,357) (17,923) (10,296) (12,355)
--------- --------- ---------- --------- --------- ---------
Change in shares...................... 12,135 20,159 1,427 1,412 2,328 667
========= ========= ========== ========= ========= =========
</TABLE>
- ------------
(a) Amount is less than 1,000.
See notes to financial statements.
95
<PAGE> 98
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND GROWTH OPPORTUNITIES FUND SMALL CAPITALIZATION FUND
------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)...... $ 983 $ 6,257 $ (3,938) $ 7,629 $ (163) $ (231)
Net realized gains (losses) from
investment, option and future
transactions.................... 278,531 130,961 140,625 35,797 21,421 10,486
Net change in unrealized
appreciation (depreciation) from
investments, options and
futures......................... 237,485 186,164 99,487 87,369 1,800 1,985
---------- ---------- ---------- --------- --------- ---------
Change in net assets resulting from
operations.......................... 516,999 323,382 236,174 130,795 23,058 12,240
---------- ---------- ---------- --------- --------- ---------
DISTRIBUTIONS TO FIDUCIARY
SHAREHOLDERS
From net investment income........ (1,456) (5,746) -- (7,053) -- --
In excess of net investment
income.......................... -- -- -- (669) -- --
From net realized gains from
investment transactions......... (167,063) (37,414) (80,645) (83,581) (9,265) (8,358)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........ (14) (403) -- (361) -- --
In excess of net investment
income.......................... (44) -- -- (34) -- --
From net realized gains from
investment transactions......... (20,430) (4,265) (7,223) (4,572) (1,939) (1,835)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income........ -- (23) -- (215) -- --
In excess of net investment
income.......................... -- -- -- (20) -- --
From net realized gains from
investment transactions......... (24,184) (3,785) (7,104) (3,102) (521) (302)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net realized gains from
investment transactions......... (4) -- --(a) -- --(a) --
---------- ---------- ---------- --------- --------- ---------
Change in net assets from shareholder
distributions....................... (213,195) (51,636) (94,972) (99,607) (11,725) (10,495)
---------- ---------- ---------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....... 343,977 230,983 305,038 291,882 59,655 14,236
Proceeds from shares issued in
conversion...................... 81,659 289,603 57,769 -- -- --
Dividends reinvested.............. 119,823 31,237 63,284 56,517 10,295 9,973
Cost of shares redeemed........... (259,677) (299,888) (215,417) (248,384) (35,493) (30,774)
---------- ---------- ---------- --------- --------- ---------
Change in net assets from share
transactions........................ 285,782 251,935 210,674 100,015 34,457 (6,565)
---------- ---------- ---------- --------- --------- ---------
Change in net assets.................. 589,586 523,681 351,876 131,203 45,790 (4,820)
NET ASSETS:
Beginning of period............... 1,401,042 877,361 704,690 573,487 99,452 104,272
---------- ---------- ---------- --------- --------- ---------
End of period..................... $1,990,628 $1,401,042 $1,056,566 $ 704,690 $ 145,242 $ 99,452
========== ========== ========== ========= ========= =========
SHARE TRANSACTIONS:
Issued............................ 17,372 14,003 14,578 16,132 4,975 1,433
Issued in conversion.............. 4,595 17,279 3,113 -- -- --
Reinvested........................ 6,450 1,936 3,314 3,283 946 1,042
Redeemed.......................... (12,865) (18,015) (10,127) (13,633) (2,939) (3,085)
---------- ---------- ---------- --------- --------- ---------
Change in shares...................... 15,552 15,203 10,878 5,782 2,982 (610)
========== ========== ========== ========= ========= =========
</TABLE>
- ------------
(a) Amount is less than 1,000.
See notes to financial statements.
96
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX
FUND
---------------------------
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1998 1997
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)........................... $ 6,397 $ 4,485
Net realized gains (losses) from investment, option
future and foreign currency transactions.............. 172 5,054
Net change in unrealized appreciation (depreciation)
from investments, options and futures and translation
of assets and liabilities in foreign currencies....... 43,167 51,395
-------- --------
Change in net assets resulting from operations.............. 49,736 60,934
-------- --------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS
From net investment income............................. (623) (4,346)
In excess of net investment income..................... -- (3,417)
From net realized gains from investment transactions... (12,040) (3,811)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............................. (4) (92)
In excess of net investment income..................... -- (73)
From net realized gains from investment transactions... (435) (111)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income............................. -- (47)
From net realized gains from investment transactions... (301) (72)
In excess of net realized gains from investment
transactions.......................................... -- (37)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net realized gains from investment transactions... --(a) --
-------- --------
Change in net assets from shareholder distributions......... (13,403) (12,006)
-------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............................ 200,947 191,629
Dividends reinvested................................... 8,154 2,834
Cost of shares redeemed................................ (93,751) (135,282)
-------- --------
Change in net assets from share transactions................ 115,350 59,181
-------- --------
Change in net assets........................................ 151,683 108,109
NET ASSETS:
Beginning of period.................................... 472,544 364,435
-------- --------
End of period.......................................... $624,227 $472,544
======== ========
SHARE TRANSACTIONS:
Issued................................................. 11,868 12,777
Reinvested............................................. 539 189
Redeemed............................................... (5,635) (9,008)
-------- --------
Change in shares............................................ 6,772 3,958
======== ========
</TABLE>
- ------------
(a) Amount is less than 1,000.
See notes to financial statements.
97
<PAGE> 100
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
GROWTH INTERNATIONAL
ASSET ALLOCATION OPPORTUNITIES EQUITY INDEX
FUND FUND FUND
---------------- ------------- -------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Total investment income................................. $ 8,147 $ 5,683 $ 11,034
Net Expenses............................................ (2,626) (9,621) (4,637)
----------- ----------- -----------
Net investment income (loss)............................ 5,521 (3,938) 6,397
Adjustments to reconcile net investment income to net
cash provided (used) by operating activities:
(Amortization)/accretion of discount/premium....... (97) -- (15)
Change in interest and dividends receivable........ (348) (38) (1,328)
Change in accrued expenses and other payables...... 249 554 232
----------- ----------- -----------
Total adjustments.................................. (196) 516 (1,111)
----------- ----------- -----------
Net cash provided (used) by operating activities........ 5,325 (3,422) 5,286
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of short-term investments......... 1,841,799 3,505,742 2,507,704
Proceeds from sales of long-term investments.......... 92,165 1,372,349 49,480
Purchases of short-term investments................... (1,853,269) (3,568,447) (2,513,911)
Purchases of long-term investments.................... (146,956) (1,406,474) (146,672)
Purchases of short-term investments with cash received
as collateral from securities lending.............. (28,905) (205,962) (92,361)
Mark to market of futures............................. 1,217 -- 612
----------- ----------- -----------
Net cash provided (used) by investing activities........ (93,949) (302,792) (195,148)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares issued........................... 115,990 347,298 200,975
Cost of shares redeemed............................... (47,244) (215,357) (93,748)
Distributions paid to shareholders.................... (25,339) (94,972) (17,882)
Dividends reinvested.................................. 16,312 63,284 8,155
Collateral received from securities lending........... 28,905 205,962 92,361
----------- ----------- -----------
Net cash provided (used) by financing activities........ 88,624 306,215 189,861
Net increase (decrease) in cash......................... -- 1 (1)
Cash at beginning of period............................. -- -- 1
----------- ----------- -----------
Cash at end of period................................... $ -- $ 1 $ --
=========== =========== ===========
</TABLE>
See notes to financial statements.
98
<PAGE> 101
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1998
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company
established as a Massachusetts business trust. The accompanying financial
statements and financial highlights are those of the Asset Allocation Fund,
the Income Equity Fund, the Equity Index Fund, the Value Growth Fund, the
Large Company Value Fund, the Disciplined Value Fund, the Large Company
Growth Fund, the Growth Opportunities Fund, the Small Capitalization Fund
(previously named the Gulf South Growth Fund) and the International Equity
Index Fund (individually a "Fund", collectively the "Funds") only. In 1997
the investment objective of the Gulf South Growth Fund was changed to permit
investments in companies headquartered or doing business outside of the
Southeastern region of the United States, and to focus the Fund's investments
to a greater extent on investments in the equity securities of small
capitalization and emerging growth companies. As a result, the name of the
Fund was changed to The One Group Small Capitalization Fund. Each Fund is a
diversified mutual fund.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Asset Allocation Fund To provide total return while preserving capital.
Income Equity Fund Current income through regular payment of dividends with
the secondary goal of achieving capital appreciation by
investing primarily in equity securities.
Equity Index Fund Investment results that correspond to the aggregate price
and dividend performance of the securities in the
Standard & Poor's 500 Composite Stock Price Index.
Value Growth Fund Long-term capital growth and growth of income with a
secondary objective of providing a moderate level of
current income.
Large Company Value Fund Capital appreciation with the incidental goal of
achieving current income by investing primarily in
equity securities.
Disciplined Value Fund Capital appreciation with the secondary goal of achieving
current income by investing primarily in equity
securities.
Large Company Growth Fund Long-term capital appreciation and growth of income by
investing primarily in equity securities.
Growth Opportunities Fund Growth of capital and secondarily, current income by
investing primarily in equity securities.
Small Capitalization Fund Long-term capital growth, primarily by investing in a
portfolio of equity securities of small-capitalization
and emerging growth companies.
International Equity Index Fund To provide investment results that correspond to the
aggregate price and dividend performance of the
securities in the Gross Domestic Product Weighted Morgan
Stanley Capital International Europe, Australia, and Far
East Index.
</TABLE>
Continued
99
<PAGE> 102
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Listed securities are valued at the latest available sales price on the
principal exchange where such securities are traded. Unlisted securities
or listed securities for which latest sales prices are not available are
valued at the mean of the latest bid and ask price in the principal
market where such securities are normally traded. Corporate debt
securities and debt securities of U.S. issuers (other than short-term
investments maturing in 60 days or less), including municipal securities,
are valued on the basis of valuations provided by dealers or by an
independent pricing service approved by the Board of Trustees. Short-term
investments maturing in 60 days or less are valued at amortized cost,
which approximates market value. Futures contracts are valued at the
settlement price established each day by the board of trade or exchange
on which they are traded. Options traded on an exchange are valued using
the last sale price or, in the absence of a sale, the last offering
price. Options traded over-the-counter are valued using dealer-supplied
valuations. Investments for which there are no such quotations or
valuations are carried at fair value as determined by the Fair Value
Committee which is comprised of members from Banc One Investment Advisors
Corporation (the "Advisor") and The One Group Services Company (the
"Administrator") under the direction of the Board of Trustees.
FOREIGN CURRENCY TRANSLATION
Investment valuations, other assets and liabilities initially expressed
in foreign currencies are converted each business day into U.S. dollars
based upon current exchange rates. Purchases and sales of foreign
investments and income and expenses are converted into U.S. dollars based
upon exchange rates prevailing on the respective dates of such
transactions. That portion of realized gains or losses and unrealized
appreciation or depreciation from investments due to fluctuations in
foreign currency exchange rates is not separately disclosed. Such
fluctuations are included with the net realized and unrealized gain or
loss from investments.
FORWARD FOREIGN CURRENCY CONTRACTS
Forward foreign currency contracts are valued at the daily exchange rate
of the underlying currency. Purchases and sales of forward foreign
currency contracts having the same settlement date and broker are
presented net on the Statement of Assets and Liabilities. The forward
foreign currency exchange contracts are adjusted by the daily exchange
rate of the underlying currency and any gains or losses are recorded for
financial statement purposes as unrealized appreciation or depreciation
until the contract settlement date. Gains or losses from the purchase or
sale of forward foreign currency contracts having the same settlement
date and broker are recorded as realized on the date of offset; otherwise
gains or losses are recorded as realized on settlement date.
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements with institutions that are
deemed by the Advisor to be of good standing and creditworthy under
guidelines established by the Board of Trustees. Each repurchase
agreement is recorded at cost. The Fund requires that the securities
purchased in a repurchase agreement
Continued
100
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
transaction be transferred to the custodian in a manner sufficient to
enable the Fund to obtain those securities in the event of a counterparty
default. The seller, under the repurchase agreement, is required to
maintain the value of the securities held at not less than the repurchase
price, including accrued interest. Repurchase agreements are considered
to be loans under the 1940 Act.
WRITTEN OPTIONS
The Funds may write covered call or secured put options for which
premiums received are recorded as liabilities and are subsequently
adjusted to the current value of the options written. Premiums received
from writing options which expire are treated as realized gains. Premiums
received from writing options, which are either exercised or closed, are
offset against the proceeds received or amount paid on the transaction to
determine realized gains or losses.
FUTURES CONTRACTS
The Funds may enter into futures contracts for the delayed delivery of
securities at a fixed price at some future date or for the change in the
value of a specified financial index over a predetermined time period.
Cash or securities are deposited with brokers in order to maintain a
position. Subsequent payments made or received by the Fund based on the
daily change in the market value of the position are recorded as
unrealized appreciation or depreciation until the contract is closed out,
at which time the appreciation or depreciation is realized.
INDEXED SECURITIES
The Funds may invest in indexed securities whose value is linked either
directly or inversely to changes in foreign currencies, interest rates,
commodities, indices or other reference instruments. Indexed securities
may be more volatile than the referenced instrument itself, but any loss
is limited to the amount of the original investment.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities
in which they are invested pursuant to agreements requiring that the loan
be continuously secured by cash, U.S. Government or U.S. Government
Agency securities, shares of an investment trust or mutual fund, or any
combination of cash and such securities as collateral equal at all times
to at least 100% of the market value plus accrued interest on the
securities lent. The Funds continue to earn dividends and interest on
securities lent while simultaneously seeking to earn interest on the
investment of collateral. Collateral is marked to market daily to provide
a level of collateral at least equal to the market value of securities
lent. There may be risks of delay in recovery of the securities or even
loss of rights in the collateral should the borrower of the securities
fail financially. However, loans will be made only to borrowers deemed by
the Advisor to be of good standing and creditworthy under guidelines
established by the Board of Trustees and when, in the judgment of the
Advisor, the consideration which can be earned currently from such
securities loans justifies the attendant risks. Loans are subject to
termination by the Funds or the borrower at any time, and are, therefore,
not
Continued
101
<PAGE> 104
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
considered to be illiquid investments. As of June 30, 1998, the following
Funds had securities with the following market values on loan (amounts in
thousands):
<TABLE>
<CAPTION>
MARKET VALUE MARKET VALUE MARKET VALUE
OF CASH OF NON-CASH OF LOANED
COLLATERAL COLLATERAL SECURITIES
------------- ------------- -------------
<S> <C> <C> <C>
Asset Allocation Fund............... $ 28,905 $ 7,650 $ 35,563
Income Equity Fund.................. 52,967 8,656 59,102
Equity Index Fund................... 114,880 6,175 117,972
Value Growth Fund................... 49,140 1,726 49,552
Large Company Value Fund............ 83,126 14,954 95,208
Disciplined Value Fund.............. 59,486 -- 58,328
Large Company Growth Fund........... 177,147 1,841 170,452
Growth Opportunities Fund........... 205,962 5,570 206,531
Small Capitalization Fund........... 14,537 -- 14,520
International Equity Index Fund..... 92,361 -- 91,782
</TABLE>
The loaned securities were fully collateralized by cash and U.S.
Government securities as of June 30, 1998.
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net
realized gains or losses from sales of securities are determined on the
specific identification cost method. Interest income and expenses are
recognized on the accrual basis. Dividends are recorded on the
ex-dividend date. Interest income, including any discount or premium, is
accrued as earned using the effective interest method.
EXPENSES
Expenses directly attributable to a Fund are charged directly to that
Fund, while the expenses, which are attributable to more than one Fund of
the Trust, are allocated among the respective Funds. Each class of shares
bears its pro-rata portion of expenses attributable to its series, except
that each class separately bears expenses related specifically to that
class, such as distribution fees.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid monthly for
the Funds except for the International Equity Index Fund which declares
and pays dividends, if any, at least annually. 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, foreign currency transactions, and deferrals of certain
losses. Permanent book and tax basis differences have been reclassified
among the components of net assets.
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each Fund intends to continue to qualify as a regulated
investment company by complying with the provisions available to certain
Continued
102
<PAGE> 105
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and
from net realized capital gains sufficient to relieve it from all, or
substantially all, Federal income taxes. Withholding taxes on foreign
dividends have been paid or provided for in accordance with the
applicable country's tax rules and rates.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value which may, without shareholder approval, be divided into an
unlimited number of series of such shares and any series may be classified or
reclassified into one or more. The Trust is registered to offer forty series
and five classes of shares: Fiduciary Class, 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 Fund's prospectus. As of June 30, 1998,
there were no shareholders in Class C of the Asset Allocation Fund, Large
Company Value Fund or the Disciplined Value Fund. 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 fiscal years ended June
30, 1998 and 1997:
Continued
103
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND INCOME EQUITY FUND EQUITY INDEX FUND
------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued......... $ 30,168 $ 36,157 $ 58,578 $ 39,671 $ 190,730 $193,036
Proceeds from shares issued in
conversion........................ -- 37,254 70,389 283,942 -- --
Dividends reinvested................ 4,088 3,380 15,841 7,467 4,908 3,889
Cost of shares redeemed............. (30,385) (41,096) (171,640) (115,841) (132,565) (148,567)
-------- -------- --------- --------- --------- --------
Change in net assets from
Fiduciary Share transactions...... $ 3,871 $ 35,695 $ (26,832) $ 215,239 $ 63,073 $ 48,358
======== ======== ========= ========= ========= ========
CLASS A SHARES:
Proceeds from shares issued......... $ 19,947 $ 14,748 $ 40,534 $ 33,483 $ 115,183 $ 72,287
Dividends reinvested................ 4,728 1,663 9,837 2,597 4,949 1,279
Cost of shares redeemed............. (8,491) (5,587) (21,803) (15,299) (34,893) (25,085)
-------- -------- --------- --------- --------- --------
Change in net assets from
Class A Share transactions........ $ 16,184 $ 10,824 $ 28,568 $ 20,781 $ 85,239 $ 48,481
======== ======== ========= ========= ========= ========
CLASS B SHARES:
Proceeds from shares issued......... $ 65,995 $ 23,133 $ 75,943 $ 40,300 $ 144,112 $106,720
Dividends reinvested................ 7,496 1,797 10,575 1,874 6,727 1,425
Cost of shares redeemed............. (8,395) (3,197) (13,487) (4,603) (24,214) (6,482)
-------- -------- --------- --------- --------- --------
Change in net assets from
Class B Share transactions........ $ 65,096 $ 21,733 $ 73,031 $ 37,571 $ 126,625 $101,663
======== ======== ========= ========= ========= ========
CLASS C SHARES:
Proceeds from shares issued......... $ 716 $ 3,146
Dividends reinvested................ 13 3
Cost of shares redeemed............. -- (72)
--------- ---------
Change in net assets from
Class C Share transactions........ $ 729 $ 3,077
========= =========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.............................. 2,320 3,003 2,678 2,121 8,081 10,607
Issued in conversion................ -- 3,076 3,342 14,913 -- --
Reinvested.......................... 322 284 736 412 212 215
Redeemed............................ (2,330) (3,348) (7,605) (6,085) (5,630) (8,036)
-------- -------- --------- --------- --------- --------
Change in Fiduciary Shares.......... 312 3,015 (849) 11,361 2,663 2,786
======== ======== ========= ========= ========= ========
CLASS A SHARES:
Issued.............................. 1,513 1,212 1,796 1,768 4,740 3,962
Reinvested.......................... 370 139 459 142 213 69
Redeemed............................ (645) (460) (966) (814) (1,415) (1,452)
-------- -------- --------- --------- --------- --------
Change in Class A Shares............ 1,238 891 1,289 1,096 3,538 2,579
======== ======== ========= ========= ========= ========
CLASS B SHARES:
Issued.............................. 4,971 1,899 3,365 2,112 5,913 5,693
Reinvested.......................... 586 150 494 102 294 76
Redeemed............................ (632) (263) (595) (242) (984) (342)
-------- -------- --------- --------- --------- --------
Change in Class B Shares............ 4,925 1,786 3,264 1,972 5,223 5,427
======== ======== ========= ========= ========= ========
CLASS C SHARES:
Issued.............................. 32 121
Reinvested.......................... 1 --(a)
Redeemed............................ -- (2)
--------- ---------
Change in Class C Shares............ 33 119
========= =========
</TABLE>
- ------------
(a) Amount is less than 1,000.
Continued
104
<PAGE> 107
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
LARGE COMPANY VALUE
VALUE GROWTH FUND FUND DISCIPLINED VALUE FUND
------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued................. $ 203,642 $ 222,240 $ 126,127 $ 150,998 137,992 $ 95,887
Proceeds from shares issued in conversion... -- -- -- 63,222 -- 48,296
Dividends reinvested........................ 22,920 32,485 22,134 25,070 45,915 27,911
Cost of shares redeemed..................... (117,078) (59,895) (132,244) (229,727) (158,657) (168,332)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Fiduciary Share transactions.............. $ 109,484 $ 194,830 $ 16,017 $ 9,563 25,250 $ 3,762
========= ========= ========= ========= ========= =========
CLASS A SHARES:
Proceeds from shares issued................. $ 26,868 $ 9,761 $ 11,457 $ 10,438 $ 8,085 $ 8,230
Dividends reinvested........................ 6,201 5,980 1,150 1,100 4,444 2,515
Cost of shares redeemed..................... (10,432) (9,421) (13,864) (8,010) (9,149) (9,255)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Class A Share transactions................ $ 22,637 $ 6,320 $ (1,257) $ 3,528 $ 3,380 $ 1,490
========= ========= ========= ========= ========= =========
CLASS B SHARES:
Proceeds from shares issued................. $ 12,570 $ 4,685 $ 7,652 $ 4,293 $ 7,198 $ 3,194
Dividends reinvested........................ 1,480 1,007 765 474 3,721 1,934
Cost of shares redeemed..................... (1,805) (930) (2,065) (670) (3,099) (2,293)
--------- --------- --------- --------- --------- ---------
Change in net assets from
Class B Share transactions................ $ 12,245 $ 4,762 $ 6,352 $ 4,097 $ 7,820 $ 2,835
========= ========= ========= ========= ========= =========
CLASS C SHARES:
Proceeds from shares issued................. $ 1,212
Dividends reinvested........................ --(a)
Cost of shares redeemed..................... (3)
---------
Change in net assets from
Class C Share transactions................ $ 1,209
=========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued...................................... 16,681 21,444 8,011 11,519 8,280 6,612
Issued in conversion........................ -- -- -- 4,655 -- 3,333
Reinvested.................................. 1,984 3,352 1,462 1,931 2,926 1,984
Redeemed.................................... (9,458) (5,755) (8,381) (17,266) (9,567) (11,571)
--------- --------- --------- --------- --------- ---------
Change in Fiduciary Shares.................. 9,207 19,041 1,092 839 1,639 358
========= ========= ========= ========= ========= =========
CLASS A SHARES:
Issued...................................... 2,167 929 712 793 481 559
Reinvested.................................. 531 615 75 84 277 178
Redeemed.................................... (847) (893) (849) (607) (544) (628)
--------- --------- --------- --------- --------- ---------
Change in Class A Shares.................... 1,851 651 (62) 270 214 109
========= ========= ========= ========= ========= =========
CLASS B SHARES:
Issued...................................... 1,005 453 475 317 428 219
Reinvested.................................. 127 104 49 36 232 137
Redeemed.................................... (147) (90) (127) (50) (185) (156)
--------- --------- --------- --------- --------- ---------
Change in Class B Shares.................... 985 467 397 303 475 200
========= ========= ========= ========= ========= =========
CLASS C SHARES:
Issued...................................... 92
Reinvested.................................. --(a)
Redeemed.................................... --(a)
---------
Change in Class C Shares.................... 92
=========
</TABLE>
- ------------
(a) Amount is less than 1,000.
Continued
105
<PAGE> 108
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH
FUND GROWTH OPPORTUNITIES FUND SMALL CAPITALIZATION FUND
------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued................. $ 181,645 $ 134,662 $ 203,143 $ 216,371 $ 50,388 $ 9,250
Proceeds from shares issued in conversion... 81,659 289,603 57,769 -- -- --
Dividends reinvested........................ 75,483 22,758 49,055 48,075 7,886 7,857
Cost of shares redeemed..................... (208,952) (274,724) (189,297) (199,916) (30,812) (23,477)
--------- --------- --------- --------- -------- --------
Change in net assets from
Fiduciary Share transactions.............. $ 129,835 $ 172,299 $ 120,670 $ 64,530 $ 27,462 $ (6,370)
========= ========= ========= ========= ======== ========
CLASS A SHARES:
Proceeds from shares issued................. $ 57,440 $ 39,340 $ 56,011 $ 54,262 $ 4,568 $ 3,550
Dividends reinvested........................ 20,287 4,698 7,158 5,065 1,888 1,821
Cost of shares redeemed..................... (33,812) (17,325) (19,911) (46,273) (3,978) (6,707)
--------- --------- --------- --------- -------- --------
Change in net assets from
Class A Share transactions................ $ 43,915 $ 26,713 $ 43,258 $ 13,054 $ 2,478 $ (1,336)
========= ========= ========= ========= ======== ========
CLASS B SHARES:
Proceeds from shares issued................. $ 104,460 $ 56,981 $ 44,814 $ 21,249 $ 4,606 $ 1,436
Dividends reinvested........................ 24,050 3,781 7,071 3,377 521 295
Cost of shares redeemed..................... (16,913) (7,839) (6,203) (2,195) (703) (590)
--------- --------- --------- --------- -------- --------
Change in net assets from
Class B Share transactions................ $ 111,597 $ 52,923 $ 45,682 $ 22,431 $ 4,424 $ 1,141
========= ========= ========= ========= ======== ========
CLASS C SHARES:
Proceeds from shares issued................. $ 432 $ 1,070 $ 93
Dividends reinvested........................ 3 --(a) --(a)
Cost of shares redeemed..................... -- (6)
--------- --------- --------
Change in net assets from
Class C Share transactions................ $ 435 $ 1,064 $ 93
========= ========= ========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued...................................... 9,422 8,322 9,733 11,966 4,210 933
Issued in conversion........................ 4,595 17,279 3,113 -- -- --
Reinvested.................................. 4,107 1,418 2,574 2,790 724 821
Redeemed.................................... (10,404) (16,537) (8,883) (11,005) (2,551) (2,352)
--------- --------- --------- --------- -------- --------
Change in Fiduciary Shares.................. 7,720 10,482 6,537 3,751 2,383 (598)
========= ========= ========= ========= ======== ========
CLASS A SHARES:
Issued...................................... 2,777 2,308 2,614 2,954 374 354
Reinvested.................................. 1,060 285 365 293 173 190
Redeemed.................................... (1,625) (1,016) (940) (2,503) (329) (673)
--------- --------- --------- --------- -------- --------
Change in Class A Shares.................... 2,212 1,577 2,039 744 218 (129)
========= ========= ========= ========= ======== ========
CLASS B SHARES:
Issued...................................... 5,151 3,373 2,183 1,212 384 146
Reinvested.................................. 1,283 233 375 200 49 31
Redeemed.................................... (836) (462) (304) (125) (59) (60)
--------- --------- --------- --------- -------- --------
Change in Class B Shares.................... 5,598 3,144 2,254 1,287 374 117
========= ========= ========= ========= ======== ========
CLASS C SHARES:
Issued...................................... 22 48 7
Reinvested.................................. --(a) --(a) --(a)
Redeemed.................................... -- --(a) --
--------- --------- --------
Change in Class C Shares.................... 22 48 7
--------- --------- --------
</TABLE>
- ------------
(a) Amount is less than 1,000.
Continued
106
<PAGE> 109
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
INDEX FUND
-------------------------
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1998 1997
----------- -----------
<S> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued........ $172,750 $182,120
Dividends reinvested............... 7,260 2,570
Cost of shares redeemed............ (77,664) (129,185)
-------- --------
Change in net assets from
Fiduciary Share transactions..... $102,346 $ 55,505
======== ========
CLASS A SHARES:
Proceeds from shares issued........ $ 23,709 $ 5,122
Dividends reinvested............... 536 167
Cost of shares redeemed............ (13,917) (4,769)
-------- --------
Change in net assets from
Class A Share transactions....... $ 10,328 $ 520
======== ========
CLASS B SHARES:
Proceeds from shares issued........ $ 4,365 $ 4,387
Dividends reinvested............... 358 97
Cost of shares redeemed............ (2,165) (1,328)
-------- --------
Change in net assets from
Class B Share transactions....... $ 2,558 $ 3,156
======== ========
CLASS C SHARES:
Proceeds from shares issued........ $ 123
Dividends reinvested............... --(a)
Cost of shares redeemed............ (5)
--------
Change in net assets from
Class C Share transactions....... $ 118
========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued............................. 10,217 12,143
Reinvested......................... 481 171
Redeemed........................... (4,685) (8,601)
-------- --------
Change in Fiduciary Shares......... 6,013 3,713
======== ========
CLASS A SHARES:
Issued............................. 1,376 337
Reinvested......................... 34 11
Redeemed........................... (816) (317)
-------- --------
Change in Class A Shares........... 594 31
======== ========
CLASS B SHARES:
Issued............................. 268 297
Reinvested......................... 24 7
Redeemed........................... (134) (90)
-------- --------
Change in Class B Shares........... 158 214
======== ========
CLASS C SHARES:
Issued............................. 7
Reinvested......................... --(a)
Redeemed........................... --(a)
--------
Change in Class C Shares........... 7
========
</TABLE>
- ------------
(a) Amount is less than 1,000.
Continued
107
<PAGE> 110
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and the Advisor are parties to an investment advisory agreement
under which the Advisor is entitled to a fee, computed daily and paid
monthly, at the annual rate of 0.74% of the average net assets of the Income
Equity Fund, the Value Growth Fund, the Large Company Value Fund, the
Disciplined Value Fund, the Large Company Growth Fund, the Growth
Opportunities Fund, and the Small Capitalization Fund; 0.65% of the average
daily net assets of the Asset Allocation Fund; 0.55% of the average daily net
assets of the International Equity Index Fund; and 0.30% of the average daily
net assets of the Equity Index Fund.
Independence International Associates ("IIA"), an indirect subsidiary of John
Hancock Mutual Life Insurance Company, manages the investment portfolio of
the International Equity Index Fund subject to the supervision of the Advisor
pursuant to a Sub-Advisory Agreement with the Advisor. For its services, IIA
is paid a fee by the Advisor, computed daily and paid monthly, at the annual
rate of 0.275% of average daily net assets up to $10 million, 0.225% of
average daily net assets over $10 million up to $25 million, 0.195% of net
assets over $25 million up to $50 million, 0.125% of the average daily net
assets over $50 million up to $100 million and 0.060% of the average daily
net assets over $100 million.
The Trust and the Administrator, a wholly-owned subsidiary of The BISYS
Group, Inc., are parties to an administrative agreement under which the
Administrator provides services for a fee that is computed daily and paid
monthly, at an annual rate of 0.20% on the first $1.5 billion of Trust net
assets (excluding the Investor Growth Fund, the Investor Growth & Income
Fund, the Investor Conservative Fund, and the Investor Balanced Fund (the
"Investor Funds") and the Treasury Only Money Market Fund and the Government
Money Market Fund (the "Institutional Money Market Funds")); 0.18% on the
next $0.5 billion of Trust net assets (excluding the Investor Funds and the
Institutional Money Market Funds); and 0.16% of Trust net assets (excluding
the Investor Funds and the Institutional Money Market Funds) over $2 billion.
The Advisor also serves as Sub-Administrator to each Fund of the Trust,
pursuant to an agreement between the Administrator and the Advisor. Pursuant
to this agreement, the Advisor performs many of the Administrator's duties,
for which the Advisor receives a fee paid by the Administrator.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A, Class B, and Class C Shares are subject to
distribution and shareholder services plans (the "Plans") pursuant to Rule
12b-1 under the 1940 Act. As provided in the Plans, the Trust will pay the
Distributor a fee of 0.35% of the average daily net assets of Class A Shares
of each of the Funds and 1.00% of the average daily net assets of the Class B
Shares 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 year ended June 30, 1998, the Distributor received
$23,155,470 from commissions earned on sales of Class A Shares and
redemptions of Class B Shares and Class C Shares, of which, the Distributor
re-allowed $22,831,371 to affiliated broker-dealers of the Funds.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
Continued
108
<PAGE> 111
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
The Advisor, the Administrator and the Distributor voluntarily agreed to
waive a portion of their fees. For the year ended June 30, 1998, fees in the
following amounts were waived (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT 12b-1 FEES
ADVISORY FEES ADMINISTRATION WAIVED
WAIVED FEES WAIVED CLASS A
------------- --------------- ----------
<S> <C> <C> <C>
Asset Allocation Fund......................... $ 192 $189 $ 40
Income Equity Fund............................ -- -- 99
Equity Index Fund............................. 1,986 633 155
Value Growth Fund............................. -- -- 62
Large Company Value Fund...................... -- -- 17
Disciplined Value Fund........................ -- -- 28
Large Company Growth Fund..................... -- -- 158
Growth Opportunities Fund..................... -- -- 67
Small Capitalization Fund..................... -- 38 19
International Equity Index Fund............... -- -- 17
</TABLE>
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the year ended
June 30, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Asset Allocation Fund....................................... $ 146,956 $ 92,165
Income Equity Fund.......................................... 128,438 198,358
Equity Index Fund........................................... 314,037 41,376
Value Growth Fund........................................... 422,844 360,483
Large Company Value Fund.................................... 340,970 356,506
Disciplined Value Fund...................................... 669,033 716,503
Large Company Growth Fund................................... 1,915,515 1,902,532
Growth Opportunities Fund................................... 1,406,474 1,372,349
Small Capitalization Fund................................... 104,484 94,432
International Equity Index Fund............................. 146,672 49,480
</TABLE>
6. FINANCIAL INSTRUMENTS:
Investing in financial instruments such as options, futures, indexed
securities and sales of forward foreign currency contracts involves risk in
excess of the amounts reflected in the Statements of Assets and Liabilities.
The face or contract amounts reflect the extent of the involvement the Funds
have in the particular class of instrument. Risks associated with these
instruments include an imperfect correlation between the movements in the
price of the instruments and the price of the underlying securities and
interest rates, an illiquid secondary market for the instruments or inability
of counterparties to perform under the terms of the contract, and changes in
the value of currency relative to the U.S. dollar. The Funds enter into these
contracts primarily as a means to hedge against adverse fluctuations in the
value of securities.
Continued
109
<PAGE> 112
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
The following is a summary of option activity for the year ended June 30,
1998 by the Funds (amounts in thousands):
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
-------------------------
SHARES SUBJECT
TO CONTRACT PREMIUMS
-------------- --------
<S> <C> <C>
COVERED CALL OPTIONS
Balance at beginning of period............................ 0 $ 0
Options written........................................... 1,080 1,447
Options closed............................................ 0 0
Options expired........................................... (592) (792)
Options exercised......................................... (388) (558)
----- ------
Options outstanding at end of period...................... 100 $ 97
===== ======
</TABLE>
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
--------------------------
SHARES SUBJECT
TO CONTRACT PREMIUMS
-------------- --------
<S> <C> <C>
PURCHASED CALL OPTIONS
Balance at beginning period............................... 0 $ 0
Options Purchased......................................... 475 5,148
Options Sold.............................................. (475) (5,148)
----- ------
Options outstanding at end of period...................... 0 $ 0
===== ======
</TABLE>
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
-------------------------
SHARES SUBJECT
TO CONTRACT PREMIUMS
-------------- --------
<S> <C> <C>
COVERED CALL OPTIONS
Options outstanding at end of period consist of:
Archer-Daniels-Midland Co., $20, 7/20/98.................. 50 $ 22
Viacom, Inc., $60, 7/20/98................................ 50 56
----- ------
100 $ 78
===== ======
</TABLE>
7. CONCENTRATION OF CREDIT RISK:
The International Equity Index Fund has a relatively large concentration of
securities invested in companies domiciled in Japan. The Fund may be more
susceptible to the political, social and economic events adversely affecting
the Japanese companies than funds not so concentrated.
8. CONVERSION OF COMMON TRUST FUNDS:
On December 19, 1997, the net assets of certain common trust funds managed by
the Advisor were exchanged in a tax-free conversion for shares of the
corresponding One Group Funds. The transaction was accounted for by a method
followed for tax purposes in a tax-free business combination. The following
is a summary of shares issued, net assets converted, net assets value per
share issued and unrealized appreciation of assets acquired as of the
conversion date (amounts in thousands except per share amounts):
Continued
110
<PAGE> 113
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
<TABLE>
<CAPTION>
NET ASSET
VALUE
SHARES NET ASSETS PER SHARE UNREALIZED
ISSUED CONVERTED ISSUED APPRECIATION
------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
Income Equity Fund....................... 3,342 $70,389 $21.06 $23,821
Large Company Growth Fund................ 4,595 81,659 17.77 33,084
Growth Opportunities Fund................ 3,113 57,769 18.56 15,137
</TABLE>
On January 20, 1997, the net assets of certain common trust funds managed by
the Advisor were exchanged in a tax-free conversion for shares of the
corresponding One Group Funds. The transaction was accounted for by a method
followed for tax purposes in a tax-free business combination. The following
is a summary of shares issued, net assets converted, net assets 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
VALUE
SHARES NET ASSETS PER SHARE UNREALIZED
ISSUED CONVERTED ISSUED APPRECIATION
------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
Asset Allocation Fund.................... 3,076 $ 37,254 $12.11 $ 8,361
Income Equity Fund....................... 14,913 283,942 19.04 150,438
Large Company Value Fund................. 4,655 63,222 13.58 7,315
Disciplined Value Fund................... 3,333 48,296 14.49 7,763
Large Company Growth Fund................ 17,279 289,603 16.76 102,448
</TABLE>
9. FEDERAL TAX INFORMATION (UNAUDITED):
The accompanying table below details distributions from long-term capital
gains for the following funds for the fiscal year ended June 30, 1998
(amounts in thousands):
<TABLE>
<CAPTION>
20% 28%
FUND DISTRIBUTION DISTRIBUTION
---- ------------ ------------
<S> <C> <C>
Asset Allocation Fund....................................... $ 2,427 $ 8,826
Income Equity Fund.......................................... 30,673 47,694
Equity Index Fund........................................... 17,664 3,010
Value Growth Fund........................................... 8,988 11,490
Large Company Value Fund.................................... 11,322 10,306
Disciplined Value Fund...................................... 23,206 45,629
Large Company Growth Fund................................... 92,507 106,905
Growth Opportunities Fund................................... 9,527 --
Small Capitalization Fund................................... 3,165 5,779
International Equity Index Fund............................. 9,654 2,364
</TABLE>
Capital losses and currency losses incurred after October 31 within the
Fund's fiscal year may be deferred and treated as occurring on the first day
of the following fiscal year. The following deferred losses will be treated
as arising on the first day of the fiscal year ended June 30, 1999 (amounts
in thousands):
<TABLE>
<CAPTION>
FUND AMOUNT
---- ------
<S> <C>
International Equity Index Fund............................. $7,190
</TABLE>
ELIGIBLE DISTRIBUTIONS:
The Trust designates the following percentage of distributions eligible for
the dividends received deductions for corporations.
Continued
111
<PAGE> 114
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
<TABLE>
<CAPTION>
FUND AMOUNT
---- -------
<S> <C>
Asset Allocation Fund....................................... 10.66%
Income Equity Fund.......................................... 99.78%
Equity Index Fund........................................... 96.31%
Value Growth Fund........................................... 17.65%
Large Company Value Fund.................................... 53.51%
Disciplined Value Fund...................................... 31.71%
Large Company Growth Fund................................... 29.53%
Growth Opportunities Fund................................... 5.26%
Small Capitalization Fund................................... 18.22%
International Equity Index Fund............................. --
</TABLE>
10. SUBSEQUENT EVENTS
On May 21, 1998, the Board of Trustees approved an agreement and plan of
reorganization and liquidation ("the Plan") with the Marquis Family of Funds
(the "Marquis Funds"). Under the Plan, the assets and liabilities of each
Marquis fund were transferred to a comparable One Group fund. Shares of the
comparable One Group fund were distributed to the Marquis shareholders in a
complete liquidation of each Marquis fund. A special Shareholder Meeting to
approve the plan was held on July 30, 1998. In a tax-free exchange on August
10, 1998, net assets of the Marquis funds were exchanged for shares of a
corresponding fund of The One Group as follows (amounts in thousands):
<TABLE>
<CAPTION>
SHARES NET ASSETS
ONE GROUP FUND ISSUED MARQUIS FUND CONVERTED
-------------- ------ ------------ ----------
<S> <C> <C> <C>
Asset Allocation Fund 10,802 Balanced Fund $141,641
Disciplined Value Fund 9,923 Value Equity Fund 136,943
Growth Opportunities Fund 1,962 Growth Equity Fund 38,617
Small Capitalization Fund 376 Small Cap Equity Fund 3,669
International Equity Index Fund 96 International Equity Fund 1,666
</TABLE>
112
<PAGE> 115
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
------------------------------------------------
FIDUCIARY
------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------
1998 1997 1996 1995 1994
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 12.98 $ 11.71 $ 10.73 $ 9.64 $ 10.06
-------- ------- ------- ------- -------
Investment Activities:
Net investment income..................................... 0.40 0.43 0.41 0.38 0.29
Net realized and unrealized gains (losses) from
investments............................................. 2.24 1.81 1.16 1.12 (0.38)
-------- ------- ------- ------- -------
Total from Investment Activities........................ 2.64 2.24 1.57 1.50 (0.09)
-------- ------- ------- ------- -------
Distributions:
Net investment income..................................... (0.39) (0.43) (0.41) (0.37) (0.29)
Net realized gains........................................ (1.43) (0.54) (0.18) (0.04) (0.04)
-------- ------- ------- ------- -------
Total Distributions..................................... (1.82) (0.97) (0.59) (0.41) (0.33)
-------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 13.80 $ 12.98 $ 11.71 $ 10.73 $ 9.64
======== ======= ======= ======= =======
Total Return................................................ 22.12% 20.16% 14.87% 16.06% (1.01)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $105,243 $94,971 $50,323 $37,658 $42,751
Ratio of expenses to average net assets................... 0.85% 0.80% 0.94% 1.06% 1.06%
Ratio of net investment income to average net assets...... 3.03% 3.55% 3.58% 3.72% 2.91%
Ratio of expenses to average net assets*.................. 1.03% 1.00% 1.19% 1.31% 1.33%
Ratio of net investment income to average net assets*..... 2.85% 3.35% 3.33% 3.47% 2.64%
Portfolio turnover (a).................................... 46.04% 80.96% 73.38% 115.36% 56.55%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
113
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
----------------------------------------------
CLASS A
----------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 13.00 $ 11.72 $ 10.74 $ 9.65 $10.06
------- ------- ------- ------- ------
Investment Activities:
Net investment income..................................... 0.36 0.39 0.37 0.35 0.27
Net realized and unrealized gains (losses) from
investments............................................. 2.24 1.83 1.16 1.13 (0.38)
------- ------- ------- ------- ------
Total from Investment Activities........................ 2.60 2.22 1.53 1.48 (0.11)
------- ------- ------- ------- ------
Distributions:
Net investment income..................................... (0.36) (0.40) (0.37) (0.34) (0.26)
In excess of net investment income........................ -- -- -- (0.01) --
Net realized gains........................................ (1.43) (0.54) (0.18) (0.04) (0.04)
------- ------- ------- ------- ------
Total Distributions..................................... (1.79) (0.94) (0.55) (0.39) (0.30)
------- ------- ------- ------- ------
NET ASSET VALUE,
END OF PERIOD............................................. $ 13.81 $ 13.00 $ 11.72 $ 10.74 $ 9.65
======= ======= ======= ======= ======
Total Return (Excludes Sales Charge)........................ 21.71% 19.85% 14.48% 15.76% (1.19)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period(000).......................... $50,456 $31,379 $17,849 $ 4,745 $1,691
Ratio of expenses to average net assets................... 1.10% 1.05% 1.19% 1.31% 1.33%
Ratio of net investment income to average net assets...... 2.77% 3.30% 3.33% 3.57% 2.68%
Ratio of expenses to average net assets*.................. 1.38% 1.34% 1.54% 1.66% 1.67%
Ratio of net investment income to average net assets*..... 2.49% 3.01% 2.98% 3.22% 2.34%
Portfolio turnover (a).................................... 46.04% 80.96% 73.38% 115.36% 56.55%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
114
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
----------------------------------------------------
CLASS B
----------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
-------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
-------- -------- ------- ------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................... $ 13.04 $ 11.76 $ 10.76 $ 9.67 $10.37
-------- -------- ------- ------ ------
Investment Activities:
Net investment income................................. 0.26 0.30 0.28 0.27 0.08
Net realized and unrealized gains (losses) from
investments......................................... 2.26 1.83 1.18 1.14 (0.70)
-------- -------- ------- ------ ------
Total from Investment Activities.................... 2.52 2.13 1.46 1.41 (0.62)
-------- -------- ------- ------ ------
Distributions:
Net investment income................................. (0.26) (0.31) (0.28) (0.27) (0.08)
In excess of net investment income.................... -- -- -- (0.01) --
Net realized gains.................................... (1.43) (0.54) (0.18) (0.04) --
-------- -------- ------- ------ ------
Total Distributions................................. (1.69) (0.85) (0.46) (0.32) (0.08)
-------- -------- ------- ------ ------
NET ASSET VALUE,
END OF PERIOD......................................... $ 13.87 $ 13.04 $ 11.76 $10.76 $ 9.67
======== ======== ======= ====== ======
Total Return (Excludes Sales Charge).................... 20.95% 18.90% 13.79% 14.90% (5.98)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................... $114,957 $ 43,900 $18,575 $3,019 $1,862
Ratio of expenses to average net assets............... 1.85% 1.81% 1.94% 2.07% 2.40% (c)
Ratio of net investment income to average net
assets.............................................. 2.01% 2.54% 2.58% 2.77% 1.99% (c)
Ratio of expenses to average net assets*.............. 2.03% 2.01% 2.19% 2.31% 2.40% (c)
Ratio of net investment income to average net
assets*............................................. 1.83% 2.34% 2.33% 2.52% 1.99% (c)
Portfolio turnover (d)................................ 46.04% 80.96% 73.38% 115.36% 56.55%
</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.
115
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
--------------------------------------------------------
FIDUCIARY
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...................................... $ 21.93 $ 17.65 $ 15.13 $ 13.22 $ 13.21
-------- -------- -------- -------- --------
Investment Activities:
Net investment income.................................... 0.32 0.36 0.40 0.40 0.39
Net realized and unrealized gains (losses) from
investments............................................ 4.36 4.89 3.22 2.28 0.01
-------- -------- -------- -------- --------
Total from Investment Activities....................... 4.68 5.25 3.62 2.68 0.40
-------- -------- -------- -------- --------
Distributions:
Net investment income.................................... (0.31) (0.36) (0.40) (0.40) (0.39)
Net realized gains....................................... (2.23) (0.61) (0.70) (0.37) --
-------- -------- -------- -------- --------
Total Distributions.................................... (2.54) (0.97) (1.10) (0.77) (0.39)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD............................................ $ 24.07 $ 21.93 $ 17.65 $ 15.13 $ 13.22
======== ======== ======== ======== ========
Total Return............................................... 23.18% 30.90% 24.53% 21.04% 3.27%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........................ $691,878 $649,007 $321,827 $170,919 $198,787
Ratio of expenses to average net assets.................. 1.00% 1.00% 0.98% 1.01% 0.98%
Ratio of net investment income to average net assets..... 1.39% 1.91% 2.44% 2.85% 3.18%
Ratio of expenses to average net assets*................. 1.00% 1.00% 1.01% 1.01% 1.05%
Ratio of net investment income to average net assets*.... 1.39% 1.91% 2.41% 2.85% 3.11%
Portfolio turnover (a)................................... 14.64% 28.18% 14.92% 4.03% 22.69%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
116
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
----------------------------------------------------
CLASS A
----------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD...................... $ 21.90 $ 17.64 $ 15.11 $ 13.20 $ 13.20
-------- -------- -------- -------- --------
Investment Activities:
Net investment income................................... 0.25 0.31 0.38 0.03 0.36
Net realized and unrealized gains (losses) from
investments........................................... 4.37 4.87 3.20 2.29 --
-------- -------- -------- -------- --------
Total from Investment Activities...................... 4.62 5.18 3.58 2.32 0.36
-------- -------- -------- -------- --------
Distributions:
Net investment income................................... (0.25) (0.31) (0.35) (0.03) (0.34)
In excess of net investment income...................... -- -- -- (0.01) (0.02)
Net realized gains...................................... (2.23) (0.61) (0.70) (0.37) --
-------- -------- -------- -------- --------
Total Distributions................................... (2.48) (0.92) (1.05) (0.41) (0.36)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD........................................... $ 24.04 $ 21.90 $ 17.64 $ 15.11 $ 13.20
======== ======== ======== ======== ========
Total Return (Excludes Sales Charge)...................... 22.91% 30.39% 24.23% 20.79% 2.95%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $117,682 $ 78,976 $ 44,284 $ 13,793 $ 12,054
Ratio of expenses to average net assets................. 1.25% 1.25% 1.23% 1.26% 1.23%
Ratio of net investment income to average net assets.... 1.15% 1.65% 2.19% 2.61% 3.01%
Ratio of expenses to average net assets*................ 1.35% 1.34% 1.36% 1.36% 1.40%
Ratio of net investment income to average net assets*... 1.05% 1.56% 2.06% 2.51% 2.84%
Portfolio turnover (a).................................. 14.64% 28.18% 14.92% 4.03% 22.69%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
117
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
---------------------------------------------------
CLASS B
---------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
-------- ------- ------- ------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD...................... $ 21.95 $ 17.68 $ 15.14 $13.23 $13.83
-------- ------- ------- ------ ------
Investment Activities:
Net investment income................................... 0.26 0.17 0.24 0.26 0.11
Net realized and unrealized gains (losses) from
investments........................................... 4.36 4.89 3.23 2.29 (0.60)
-------- ------- ------- ------ ------
Total from Investment Activities...................... 4.62 5.06 3.47 2.55 (0.49)
-------- ------- ------- ------ ------
Distributions:
Net investment income................................... (0.26) (0.18) (0.23) (0.25) (0.11)
In excess of net investment income...................... -- -- -- (0.02) --
Net realized gains...................................... (2.23) (0.61) (0.70) (0.37) --
-------- ------- ------- ------ ------
Total Distributions................................... (2.49) (0.79) (0.93) (0.64) (0.11)
-------- ------- ------- ------ ------
NET ASSET VALUE,
END OF PERIOD........................................... $ 24.08 $ 21.95 $ 17.68 $15.14 $13.23
======== ======= ======= ====== ======
Total Return (Excludes Sales Charge)...................... 21.97% 29.48% 23.41% 19.91% (3.37)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period(000)........................ $165,813 $79,518 $29,169 $3,468 $1,714
Ratio of expenses to average net assets................. 1.99% 2.00% 1.98% 2.01% 1.95%(c)
Ratio of net investment income to average net assets.... 0.39% 0.89% 1.44% 1.88% 2.70%(c)
Ratio of expenses to average net assets*................ 1.99% 2.00% 2.01% 2.02% 1.95%(c)
Ratio of net investment income to average net assets*... 0.39% 0.89% 1.41% 1.87% 2.70%(c)
Portfolio turnover (d).................................. 14.64% 28.18% 14.92% 4.03% 22.69%
</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.
118
<PAGE> 121
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME EQUITY FUND
------------------
CLASS C
------------------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $21.40
------
Investment Activities:
Net investment income..................................... 0.06
Net realized and unrealized gains (losses) from
investments............................................. 3.39
------
Total from Investment Activities........................ 3.45
------
Distributions:
Net investment income..................................... (0.07)
Net realized gains........................................ (0.70)
------
Total Distributions..................................... (0.77)
------
NET ASSET VALUE,
END OF PERIOD............................................. $24.08
======
Total Return (Excludes Sales Charge)........................ 16.57% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period(000).......................... $ 795
Ratio of expenses to average net assets................... 1.98% (c)
Ratio of net investment income to average net assets...... 0.38% (c)
Portfolio turnover (d).................................... 14.64%
</TABLE>
- ------------
(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.
119
<PAGE> 122
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------
FIDUCIARY
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...................................... $ 21.80 $ 16.66 $ 14.03 $ 11.59 $ 11.92
-------- -------- -------- -------- --------
Investment Activities:
Net investment income.................................... 0.33 0.35 0.33 0.32 0.29
Net realized and unrealized gains (losses) from
investments............................................ 5.98 5.27 3.16 2.59 (0.20)
-------- -------- -------- -------- --------
Total from Investment Activities....................... 6.31 5.62 3.49 2.91 0.09
-------- -------- -------- -------- --------
Distributions:
Net investment income.................................... (0.32) (0.33) (0.33) (0.29) (0.29)
In excess of net investment income....................... -- -- (0.01) (0.02) (0.04)
Net realized gains....................................... (0.63) (0.15) (0.52) (0.16) (0.09)
-------- -------- -------- -------- --------
Total Distributions.................................... (0.95) (0.48) (0.86) (0.47) (0.42)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD............................................ $ 27.16 $ 21.80 $ 16.66 $ 14.03 $ 11.59
======== ======== ======== ======== ========
Total Return............................................... 29.73% 34.30% 25.47% 25.79% 0.63%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period(000)......................... $671,422 $480,819 $321,058 $234,895 $165,370
Ratio of expenses to average net assets.................. 0.35% 0.30% 0.30% 0.33% 0.46%
Ratio of net investment income to average net assets..... 1.37% 1.87% 2.18% 2.57% 2.44%
Ratio of expenses to average net assets*................. 0.62% 0.61% 0.59% 0.66% 0.59%
Ratio of net investment income to average net assets*.... 1.10% 1.56% 1.89% 2.24% 2.31%
Portfolio turnover (a)................................... 4.32% 5.81% 9.08% 2.71% 11.81%
</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) 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.
120
<PAGE> 123
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------
CLASS A
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...................................... $ 21.81 $ 16.67 $ 14.02 $ 11.59 $ 11.91
-------- -------- -------- -------- -------
Investment Activities:
Net investment income.................................... 0.26 0.29 0.27 0.29 0.28
Net realized and unrealized gains (losses) from
investments............................................ 5.97 5.28 3.18 2.58 (0.20)
-------- -------- -------- -------- -------
Total from Investment Activities....................... 6.23 5.57 3.45 2.87 0.08
-------- -------- -------- -------- -------
Distributions:
Net investment income.................................... (0.26) (0.28) (0.27) (0.28) (0.27)
In excess of net investment income....................... -- -- (0.01) -- (0.04)
Net realized gains....................................... (0.63) (0.15) (0.52) (0.16) (0.09)
-------- -------- -------- -------- -------
Total Distributions.................................... (0.89) (0.43) (0.80) (0.44) (0.40)
-------- -------- -------- -------- -------
NET ASSET VALUE,
END OF PERIOD............................................ $ 27.15 $ 21.81 $ 16.67 $ 14.02 $ 11.59
======== ======== ======== ======== =======
Total Return (Excludes Sales Charge)....................... 29.33% 33.94% 25.16% 25.43% 0.56%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........................ $218,518 $ 98,338 $ 32,186 $ 3,003 $ 1,416
Ratio of expenses to average net assets.................. 0.60% 0.55% 0.55% 0.56% 0.62%
Ratio of net investment income to average net assets..... 1.11% 1.59% 1.93% 2.38% 2.37%
Ratio of expenses to average net assets*................. 0.96% 0.95% 0.94% 1.01% 0.94%
Ratio of net investment income to average net assets*.... 0.75% 1.19% 1.54% 1.94% 2.05%
Portfolio turnover (a)................................... 4.32% 5.81% 9.08% 2.71% 11.81%
</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) 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.
121
<PAGE> 124
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
----------------------------------------------------
CLASS B
----------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
-------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
-------- -------- ------- ------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................... $ 21.80 $ 16.68 $ 14.05 $11.61 $12.39
-------- -------- ------- ------ ------
Investment Activities:
Net investment income................................. 0.10 0.16 0.16 0.18 0.09
Net realized and unrealized gains (losses) from
investments......................................... 5.97 5.27 3.16 2.61 (0.78)
-------- -------- ------- ------ ------
Total from Investment Activities.................... 6.07 5.43 3.32 2.79 (0.69)
-------- -------- ------- ------ ------
Distributions:
Net investment income................................. (0.11) (0.16) (0.16) (0.19) (0.09)
In excess of net investment income.................... -- -- (0.01) -- --
Net realized gains.................................... (0.63) (0.15) (0.52) (0.16) --
-------- -------- ------- ------ ------
Total Distributions................................. (0.74) (0.31) (0.69) (0.35) (0.09)
-------- -------- ------- ------ ------
NET ASSET VALUE,
END OF PERIOD......................................... $ 27.13 $ 21.80 $ 16.68 $14.05 $11.61
======== ======== ======= ====== ======
Total Return (Excludes Sales Charge).................... 28.47% 32.93% 24.05% 24.58% (5.57)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................... $351,624 $168,699 $38,538 $1,408 $ 248
Ratio of expenses to average net assets............... 1.35% 1.30% 1.30% 1.34% 1.10% (c)
Ratio of net investment income to average net
assets.............................................. 0.36% 0.83% 1.18% 1.60% 2.08% (c)
Ratio of expenses to average net assets*.............. 1.61% 1.61% 1.59% 1.67% 1.15% (c)
Ratio of net investment income to average net
assets*............................................. 0.10% 0.52% 0.89% 1.27% 2.03% (c)
Portfolio turnover (d)................................ 4.32% 5.81% 9.08% 2.71% 11.81%
</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.
122
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX FUND
-----------------
CLASS C
-------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
-----------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $22.60
------
Investment Activities:
Net investment income..................................... 0.07
Net realized and unrealized gains (losses) from
investments............................................. 4.67
------
Total from Investment Activities........................ 4.74
------
Distributions:
Net investment income..................................... (0.08)
Net realized gains........................................ (0.12)
------
Total Distributions..................................... (0.20)
------
NET ASSET VALUE,
END OF PERIOD............................................. $27.14
======
Total Return (Excludes Sales Charge)........................ 21.07% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $3,214
Ratio of expenses to average net assets................... 1.35% (c)
Ratio of net investment income to average net assets...... 0.27% (c)
Ratio of expenses to average net assets*.................. 1.60% (c)
Ratio of net investment income to average net assets*..... 0.02% (c)
Portfolio turnover (d).................................... 4.32%
</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.
123
<PAGE> 126
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE GROWTH FUND
---------------------------------
FIDUCIARY
---------------------------------
MARCH 26,
YEAR ENDED JUNE 30, 1996 TO
------------------- JUNE 30,
1998 1997 1996(a)
-------- -------- -----------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 11.51 $ 10.39 $ 10.00
-------- -------- --------
Investment Activities:
Net investment income..................................... 0.08 0.11 0.03
Net realized and unrealized gains (losses) from
investments............................................. 3.36 2.85 0.39
-------- -------- --------
Total from Investment Activities........................ 3.44 2.96 0.42
-------- -------- --------
Distributions:
Net investment income..................................... (0.08) (0.11) (0.03)
Net realized gains........................................ (1.36) (1.73) --
-------- -------- --------
Total Distributions..................................... (1.44) (1.84) (0.03)
-------- -------- --------
NET ASSET VALUE,
END OF PERIOD............................................. $ 13.51 $ 11.51 $ 10.39
======== ======== ========
Total Return................................................ 32.26% 31.97% 10.49%(b)(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $630,340 $430,837 $191,212
Ratio of expenses to average net assets................... 0.98% 0.98% 0.95%(d)
Ratio of net investment income to average net assets...... 0.66% 1.06% 1.13%(d)
Ratio of expenses to average net assets*.................. 0.98% 1.00% 1.04%(d)
Ratio of net investment income to average net assets*..... 0.66% 1.04% 1.04%(d)
Portfolio turnover (e).................................... 62.37% 113.17% 65.21%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from date reorganized as a fund of The One Group.
(b) Represents total return for Class A Shares from December 1, 1995 through
March 25, 1996 plus total return for Fiduciary Shares for the period from
March 26, 1996 through June 30, 1996.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
124
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE GROWTH FUND
------------------------------------------------------------------
CLASS A
------------------------------------------------------------------
SEVEN
MONTHS
YEAR ENDED JUNE 30, ENDED YEAR ENDED NOVEMBER 30,
-------------------- JUNE 30, ------------------------------
1998 1997 1996(a) 1995 1994 1993
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.......................... $ 11.50 $ 10.39 $ 11.15 $ 9.00 $ 10.02 $ 9.42
------- ------- ------- -------- -------- --------
Investment Activities:
Net investment income........................ 0.05 0.09 0.94 0.12 0.13 0.11
Net realized and unrealized gains (losses)
from investments........................... 3.36 2.83 0.08 2.44 (0.56) 0.83
------- ------- ------- -------- -------- --------
Total from Investment Activities........... 3.41 2.92 1.02 2.56 (0.43) 0.94
------- ------- ------- -------- -------- --------
Distributions:
Net investment income........................ (0.05) (0.08) (0.94) (0.12) (0.14) (0.12)
In excess of net investment income........... -- -- (0.01) -- -- --
Net realized gains........................... (1.36) (1.73) (0.83) (0.29) (0.45) (0.22)
------- ------- ------- -------- -------- --------
Total Distributions........................ (1.41) (1.81) (1.78) (0.41) (0.59) (0.34)
------- ------- ------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD................................ $ 13.50 $ 11.50 $ 10.39 $ 11.15 $ 9.00 $ 10.02
======= ======= ======= ======== ======== ========
Total Return (Excludes Sales Charge)........... 31.96% 31.53% 10.40%(b) 29.57% (4.32)% 10.13%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............ $80,500 $47,306 $35,984 $217,978 $173,198 $171,141
Ratio of expenses to average net assets...... 1.23% 1.23% 0.97%(c) 0.95% 0.96% 0.96%
Ratio of net investment income to average net
assets..................................... 0.40% 0.83% 0.85%(c) 1.25% 1.34% 1.21%
Ratio of expenses to average net assets*..... 1.33% 1.34% 1.05%(c) 0.95% 0.96% 0.96%
Ratio of net investment income to average net
assets*.................................... 0.30% 0.72% 0.77%(c) 1.25% 1.34% 1.21%
Portfolio turnover (d)....................... 62.37% 113.17% 65.21% 77.00% 53.00% 66.00%
</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) Upon reorganizing as a fund of the One Group, the Paragon Value Growth Fund
became the Value Growth Fund. Financial highlights for the periods prior to
March 26, 1996 represent the Paragon Value Growth Fund. The per share data
for the periods prior to March 26, 1996 have been restated to reflect the
impact of restatement of net asset value from $15.26 to $10.00 effective
March 26, 1996.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
125
<PAGE> 128
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Value Growth Fund
---------------------------------------------------------------
Class B
---------------------------------------------------------------
SEVEN
Year Ended MONTHS SEPTEMBER 9,
June 30, ENDED YEAR ENDED 1994 TO
------------------ JUNE 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1996(a) 1995 1994(b)
------- ------- -------- ------------ -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 11.47 $ 10.39 $ 11.16 $ 9.01 $ 9.85
------- ------- ------- ------ -------
Investment Activities:
Net investment income (loss)....................... (0.02) 0.01 0.91 0.05 0.02
Net realized and unrealized gains (losses) from
investments...................................... 3.31 2.82 0.07 2.46 (0.84)
------- ------- ------- ------ -------
Total from Investment Activities................. 3.29 2.83 0.98 2.51 (0.82)
------- ------- ------- ------ -------
Distributions:
Net investment income.............................. -- (0.02) (0.91) (0.07) (0.02)
In excess of net investment income................. -- -- (0.01) -- --
Net realized gains................................. (1.36) (1.73) (0.83) (0.29) --
------- ------- ------- ------ -------
Total Distributions.............................. (1.36) (1.75) (1.75) (0.36) (0.02)
------- ------- ------- ------ -------
NET ASSET VALUE,
END OF PERIOD...................................... $ 13.40 $ 11.47 $ 10.39 $11.16 $ 9.01
======= ======= ======= ====== =======
Total Return (Excludes Sales Charge)................. 30.89% 30.52% 9.96%(c) 28.74% (8.31)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $25,501 $10,517 $ 4,673 $2,923 $ 412
Ratio of expenses to average net assets............ 1.98% 1.98% 1.86%(d) 1.70% 1.71% (d)
Ratio of net investment income to average net
assets........................................... (0.35)% 0.07% 0.13%(d) 0.38% 0.76% (d)
Ratio of expenses to average net assets*........... 1.98% 2.00% 1.94%(d) 1.70% 1.71% (d)
Ratio of net investment income to average net
assets*.......................................... (0.35)% 0.05% 0.05%(d) 0.38% 0.76% (d)
Portfolio turnover (e)............................. 62.37% 113.17% 65.21% 77.00% 53.00%
</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) Upon reorganizing as a fund of the One Group, the Paragon Value Growth Fund
became the Value Growth Fund. Financial highlights for the periods prior to
March 26, 1996 represent the Paragon Value Growth Fund. The per share data
for the periods prior to March 26, 1996 have been restated to reflect the
impact of restatement of net asset value from $15.21 to $10.00 effective
March 26, 1996.
(b) Period from commencement of operations.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
126
<PAGE> 129
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE GROWTH FUND
-----------------
CLASS C
-----------------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
-----------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $11.76
------
Investment Activities:
Net realized and unrealized gains (losses) from
investments............................................. 2.35
------
Total from Investment Activities........................ 2.35
------
Distributions:
Net investment income..................................... (0.01)
Net realized gains........................................ (0.63)
------
Total Distributions..................................... (0.64)
------
NET ASSET VALUE,
END OF PERIOD............................................. $13.47
======
Total Return (Excludes Sales Charge)........................ 20.87%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $1,234
Ratio of expenses to average net assets................... 1.99% (c)
Ratio of net investment income to average net assets...... (0.43)%(c)
Portfolio turnover (d).................................... 62.37%
</TABLE>
- ------------
(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.
127
<PAGE> 130
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
----------------------------------------------------------------
FIDUCIARY
----------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 14.79 $ 12.83 $ 12.87 $ 11.34 $ 11.64
-------- -------- -------- -------- --------
Investment Activities:
Net investment income................................. 0.21 0.27 0.31 0.31 0.20
Net realized and unrealized gains (losses) from
investments......................................... 2.84 3.01 1.20 2.18 (0.01)
-------- -------- -------- -------- --------
Total from Investment Activities.................... 3.05 3.28 1.51 2.49 0.19
-------- -------- -------- -------- --------
Distributions:
Net investment income................................. (0.21) (0.26) (0.31) (0.32) (0.19)
Net realized gains.................................... (0.93) (1.06) (1.24) (0.64) (0.30)
-------- -------- -------- -------- --------
Total Distributions................................. (1.14) (1.32) (1.55) (0.96) (0.49)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD......................................... $ 16.70 $ 14.79 $ 12.83 $ 12.87 $ 11.34
======== ======== ======== ======== ========
Total Return............................................ 21.46% 27.10% 12.71% 23.42% (1.59)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................... $792,649 $686,156 $584,527 $365,376 $169,127
Ratio of expenses to average net assets............... 0.95% 0.97% 0.97% 1.00% 0.95%
Ratio of net investment income to average net
assets.............................................. 1.34% 1.99% 2.43% 2.74% 1.72%
Ratio of expenses to average net assets*.............. 0.95% 0.97% 0.98% 1.01% 1.02%
Ratio of net investment income to average net
assets*............................................. 1.34% 1.99% 2.42% 2.73% 1.65%
Portfolio turnover (a)................................ 47.35% 77.05% 186.84% 203.13% 111.72%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
128
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
--------------------------------------------------------
CLASS A
--------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 14.85 $ 12.87 $12.89 $11.34 $11.64
------- ------- ------ ------ ------
Investment Activities:
Net investment income..................................... 0.18 0.23 0.27 0.28 0.17
Net realized and unrealized gains (losses) from
investments............................................. 2.84 3.04 1.22 2.20 (0.01)
------- ------- ------ ------ ------
Total from Investment Activities........................ 3.02 3.27 1.49 2.48 0.16
------- ------- ------ ------ ------
Distributions:
Net investment income..................................... (0.17) (0.23) (0.27) (0.27) (0.16)
In excess of net investment income........................ -- -- -- (0.02) --
Net realized gains........................................ (0.93) (1.06) (1.24) (0.64) (0.30)
------- ------- ------ ------ ------
Total Distributions..................................... (1.10) (1.29) (1.51) (0.93) (0.46)
------- ------- ------ ------ ------
NET ASSET VALUE,
END OF PERIOD............................................. $ 16.77 $ 14.85 $12.87 $12.89 $11.34
======= ======= ====== ====== ======
Total Return (Excludes Sales Charge)........................ 21.14% 26.90% 12.40% 22.64% 1.35%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $15,699 $14,832 $9,380 $3,481 $ 698
Ratio of expenses to average net assets................... 1.20% 1.22% 1.22% 1.25% 1.20%
Ratio of net investment income to average net assets...... 1.10% 1.72% 2.18% 2.52% 1.57%
Ratio of expenses to average net assets*.................. 1.30% 1.31% 1.33% 1.37% 1.37%
Ratio of net investment income to average net assets*..... 1.00% 1.63% 2.07% 2.41% 1.40%
Portfolio turnover (a).................................... 47.35% 77.05% 186.84% 203.13% 111.72%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
129
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY VALUE FUND
------------------------------------------------------------
CLASS B
------------------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
------------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
------- ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..................................... $ 14.95 $12.98 $12.96 $11.41 $11.87
------- ------ ------ ------ ------
Investment Activities:
Net investment income................................... 0.07 0.14 0.18 0.17 0.05
Net realized and unrealized gains (losses) from
investments........................................... 2.84 3.04 1.26 2.19 (0.46)
------- ------ ------ ------ ------
Total from Investment Activities...................... 2.91 3.18 1.44 2.36 (0.41)
------- ------ ------ ------ ------
Distributions:
Net investment income................................... (0.09) (0.15) (0.18) (0.17) (0.05)
Net realized gains...................................... (0.93) (1.06) (1.24) (0.64) --
------- ------ ------ ------ ------
Total Distributions................................... (1.02) (1.21) (1.42) (0.81) (0.05)
------- ------ ------ ------ ------
NET ASSET VALUE,
END OF PERIOD........................................... $ 16.84 $14.95 $12.98 $12.96 $11.41
======= ====== ====== ====== ======
Total Return (Excludes Sales Charge)...................... 20.18% 25.86% 11.95% 22.28% 3.48% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $17,154 $9,288 $4,135 $ 861 $ 182
Ratio of expenses to average net assets................. 1.95% 1.97% 1.97% 2.00% 2.00% (c)
Ratio of net investment income to average net assets.... 0.33% 0.96% 1.43% 1.74% 1.06% (c)
Ratio of expenses to average net assets*................ 1.95% 1.97% 1.98% 2.01% 2.00% (c)
Ratio of net investment income to average net assets*... 0.33% 0.96% 1.42% 1.72% 1.06% (c)
Portfolio turnover (d).................................. 47.35% 77.05% 186.84% 203.13% 111.72%
</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.
130
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DISCIPLINED VALUE FUND
----------------------------------------------------------------
FIDUCIARY
----------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................... $ 15.65 $ 14.69 $ 13.20 $ 11.90 $ 12.76
-------- -------- -------- -------- --------
Investment Activities:
Net investment income................................. 0.14 0.22 0.29 0.28 0.26
Net realized and unrealized gains from investments.... 3.99 2.57 2.27 1.57 0.29
-------- -------- -------- -------- --------
Total from Investment Activities.................... 4.13 2.79 2.56 1.85 0.55
-------- -------- -------- -------- --------
Distributions:
Net investment income................................. (0.14) (0.22) (0.29) (0.27) (0.26)
Net realized gains.................................... (2.74) (1.61) (0.78) (0.28) (1.15)
-------- -------- -------- -------- --------
Total Distributions................................. (2.88) (1.83) (1.07) (0.55) (1.41)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD......................................... $ 16.90 $ 15.65 $ 14.69 $ 13.20 $ 11.90
======== ======== ======== ======== ========
Total Return............................................ 28.27% 20.56% 20.10% 16.03% 4.04%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................... $634,672 $562,302 $522,474 $448,530 $418,238
Ratio of expenses to average net assets............... 0.96% 0.98% 0.99% 1.00% 0.93%
Ratio of net investment income to average net
assets.............................................. 0.85% 1.52% 2.04% 2.21% 2.14%
Ratio of expenses to average net assets*.............. 0.96% 0.98% 1.00% 1.10% 0.98%
Ratio of net investment income to average net
assets*............................................. 0.85% 1.52% 2.03% 2.11% 2.09%
Portfolio turnover (a)................................ 106.41% 92.66% 90.55% 176.66% 56.33%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
131
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DISCIPLINED VALUE FUND
-----------------------------------------------------------
CLASS A
-----------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 15.68 $ 14.72 $ 13.22 $ 11.91 $ 12.75
------- ------- ------- ------- -------
Investment Activities:
Net investment income..................................... 0.10 0.19 0.25 0.24 0.24
Net realized and unrealized gains from investments........ 3.99 2.57 2.28 1.59 0.30
------- ------- ------- ------- -------
Total from Investment Activities........................ 4.09 2.76 2.53 1.83 0.54
------- ------- ------- ------- -------
Distributions:
Net investment income..................................... (0.10) (0.19) (0.25) (0.24) (0.23)
Net realized gains........................................ (2.74) (1.61) (0.78) (0.26) (1.10)
In excess of net realized gains........................... -- -- -- (0.02) (0.05)
------- ------- ------- ------- -------
Total Distributions..................................... (2.84) (1.80) (1.03) (0.52) (1.38)
------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 16.93 $ 15.68 $ 14.72 $ 13.22 $ 11.91
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)........................ 27.90% 20.21% 19.80% 15.43% 3.95%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $29,443 $23,909 $20,838 $13,560 $10,448
Ratio of expenses to average net assets................... 1.21% 1.23% 1.24% 1.26% 1.18%
Ratio of net investment income to average net assets...... 0.60% 1.26% 1.79% 1.99% 2.00%
Ratio of expenses to average net assets*.................. 1.31% 1.31% 1.35% 1.36% 1.33%
Ratio of net investment income to average net assets*..... 0.50% 1.18% 1.68% 1.89% 1.85%
Portfolio turnover (a).................................... 106.41% 92.66% 90.55% 176.66% 56.33%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
132
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DISCIPLINED VALUE FUND
-------------------------------------------------------
CLASS B
-------------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
---------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..................................... $ 15.64 $ 14.69 $ 13.19 $ 11.90 $12.60
------- ------- ------- ------- ------
Investment Activities:
Net investment income (loss)............................ (0.02) 0.08 0.15 0.15 0.07
Net realized and unrealized gains (losses) from
investments........................................... 3.98 2.55 2.27 1.58 (0.70)
------- ------- ------- ------- ------
Total from Investment Activities...................... 3.96 2.63 2.42 1.73 (0.63)
------- ------- ------- ------- ------
Distributions:
Net investment income................................... (0.01) (0.07) (0.14) (0.15) (0.06)
In excess of net investment income...................... -- -- -- (0.01) (0.01)
Net realized gains...................................... (2.74) (1.61) (0.78) (0.28) --
------- ------- ------- ------- ------
Total Distributions................................... (2.75) (1.68) (0.92) (0.44) (0.07)
------- ------- ------- ------- ------
NET ASSET VALUE,
END OF PERIOD........................................... $ 16.85 $ 15.64 $ 14.69 $ 13.19 $11.90
======= ======= ======= ======= ======
Total Return (Excludes Sales Charge).................. 26.97% 19.19% 18.93% 14.92% (5.00)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $30,094 $20,499 $16,305 $11,222 $5,356
Ratio of expenses to average net assets................. 1.96% 1.98% 1.99% 2.00% 1.96% (c)
Ratio of net investment income to average net assets.... (0.15)% 0.51% 1.04% 1.26% 1.80% (c)
Ratio of expenses to average net assets*................ 1.96% 1.98% 2.00% 2.01% 1.96% (c)
Ratio of net investment income to average net assets*... (0.15)% 0.51% 1.03% 1.25% 1.80% (c)
Portfolio turnover (d).................................. 106.41% 92.66% 90.55% 176.66% 56.33%
</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.
133
<PAGE> 136
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
--------------------------------------------------------------------
FIDUCIARY
--------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................ $ 19.44 $ 15.44 $ 13.47 $ 11.32 $ 10.92
---------- ---------- -------- -------- --------
Investment Activities:
Net investment income.............................. 0.04 0.12 0.18 0.20 0.20
Net realized and unrealized gains from
investments...................................... 6.13 4.79 2.14 3.04 0.67
---------- ---------- -------- -------- --------
Total from Investment Activities................. 6.17 4.91 2.32 3.24 0.87
---------- ---------- -------- -------- --------
Distributions:
Net investment income.............................. (0.02) (0.11) (0.18) (0.20) (0.20)
Net realized gains................................. (2.88) (0.80) (0.17) (0.89) (0.27)
---------- ---------- -------- -------- --------
Total Distributions.............................. (2.90) (0.91) (0.35) (1.09) (0.47)
---------- ---------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD...................................... $ 22.71 $ 19.44 $ 15.44 $ 13.47 $ 11.32
========== ========== ======== ======== ========
Total Return......................................... 35.75% 33.11% 17.36% 21.85% 8.04%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $1,510,521 $1,142,864 $745,986 $531,595 $150,035
Ratio of expenses to average net assets............ 0.99% 0.99% 0.96% 1.00% 0.78%
Ratio of net investment income to average net
assets........................................... 0.21% 0.69% 1.20% 1.72% 1.87%
Ratio of expenses to average net assets*........... 0.99% 0.99% 0.99% 1.00% 1.13%
Ratio of net investment income to average net
assets*.......................................... 0.21% 0.69% 1.17% 1.72% 1.52%
Portfolio turnover (a)............................. 117.34% 57.17% 35.51% 14.22% 9.04%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
134
<PAGE> 137
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
----------------------------------------------------------
CLASS A
----------------------------------------------------------
FEBRUARY 22,
YEAR ENDED JUNE 30, 1994 TO
------------------------------------------ JUNE 30,
1998 1997 1996 1995 1994(a)
-------- -------- ------- ------- ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.................................. $ 19.92 $ 15.83 $ 13.83 $ 11.62 $11.78
-------- -------- ------- ------- ------
Investment Activities:
Net investment income (loss)......................... (0.01) 0.08 0.14 0.17 0.04
Net realized and unrealized gains (losses) from
investments........................................ 6.30 4.88 2.17 3.10 (0.16)
-------- -------- ------- ------- ------
Total from Investment Activities..................... 6.29 4.96 2.31 3.27 (0.12)
-------- -------- ------- ------- ------
Distributions:
Net investment income................................ -- (0.07) (0.14) (0.16) (0.04)
In excess of net investment income................... (0.01) -- -- (0.01) --
Net realized gains................................... (2.88) (0.80) (0.17) (0.89) --
-------- -------- ------- ------- ------
Total Distributions................................ (2.89) (0.87) (0.31) (1.06) (0.04)
-------- -------- ------- ------- ------
NET ASSET VALUE,
END OF PERIOD........................................ $ 23.32 $ 19.92 $ 15.83 $ 13.83 $11.62
======== ======== ======= ======= ======
Total Return (Excludes Sales Charge)................... 35.43% 32.57% 16.85% 21.52% (1.02)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................... $199,052 $125,910 $75,114 $27,428 $ 368
Ratio of expenses to average net assets.............. 1.24% 1.24% 1.21% 1.26% 1.25% (c)
Ratio of net investment income to average net
assets............................................. (0.04)% 0.44% 0.95% 1.49% 1.78% (c)
Ratio of expenses to average net assets*............. 1.34% 1.32% 1.34% 1.36% 1.35% (c)
Ratio of net investment income to average net
assets*............................................ (0.14)% 0.36% 0.82% 1.39% 1.68% (c)
Portfolio turnover (d)............................... 117.34% 57.17% 35.51% 14.22% 9.04%
</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.
135
<PAGE> 138
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
---------------------------------------------------------
CLASS B
---------------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
------------------------------------------ JUNE 30,
1998 1997 1996 1995 1994(a)
-------- -------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................................... $ 19.61 $ 15.63 $ 13.63 $ 11.47 $11.57
-------- -------- ------- ------- ------
Investment Activities:
Net investment income (loss).......................... (0.10) (0.04) 0.05 0.09 0.03
Net realized and unrealized gains (losses) from
investments......................................... 6.10 4.82 2.17 3.06 (0.10)
-------- -------- ------- ------- ------
Total from Investment Activities.................... 6.00 4.78 2.22 3.15 (0.07)
-------- -------- ------- ------- ------
Distributions:
Net investment income................................. -- -- (0.05) (0.09) (0.03)
In excess of net investment income -- -- -- (0.01) --
Net realized gains.................................... (2.88) (0.80) (0.17) (0.89) --
-------- -------- ------- ------- ------
Total Distributions................................. (2.88) (0.80) (0.22) (0.99) (0.03)
-------- -------- ------- ------- ------
NET ASSET VALUE,
END OF PERIOD......................................... $ 22.73 $ 19.61 $ 15.63 $ 13.63 $11.47
======== ======== ======= ======= ======
Total Return (Excludes Sales Charge).................... 34.39% 31.74% 16.41% 20.65% (0.66)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $280,563 $132,268 $56,261 $ 6,918 $ 334
Ratio of expenses to average net assets............... 1.99% 2.00% 1.96% 2.01% 1.99% (c)
Ratio of net investment income to average net assets (0.80)% (0.33)% 0.20% 0.74% 0.96% (c)
Ratio of expenses to average net assets*.............. 1.99% 2.00% 1.99% 2.01% 1.99% (c)
Ratio of net investment income to average net assets* (0.80)% (0.33)% 0.17% 0.74% 0.96% (c)
Portfolio turnover (d)................................ 117.34% 57.17% 35.51% 14.22% 9.04%
</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.
136
<PAGE> 139
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANY
GROWTH FUND
-------------
CLASS C
-------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
-----------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $18.98
------
Investment Activities:
Net investment income (loss).............................. (0.06)
Net realized and unrealized gains from investments........ 4.99
------
Total from Investment Activities........................ 4.93
------
Distributions:
Net realized gains........................................ (1.34)
------
Total Distributions..................................... (1.34)
------
NET ASSET VALUE,
END OF PERIOD............................................. $22.57
======
Total Return (Excludes Sales Charge)........................ 27.63% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 492
Ratio of expenses to average net assets................... 1.98% (c)
Ratio of net investment income to average net assets...... (0.87)%(c)
Portfolio turnover (d).................................... 117.34%
</TABLE>
- ------------
(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.
137
<PAGE> 140
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES FUND
----------------------------------------------------------------
FIDUCIARY
----------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $ 19.46 $ 18.81 $ 18.40 $ 15.96 $ 16.96
-------- -------- -------- -------- --------
Investment Activities:
Net investment income (loss)......................... (0.07) 0.25 0.20 0.06 0.07
Net realized and unrealized gains (losses) from
investments........................................ 5.70 3.59 3.83 2.98 (0.05)
-------- -------- -------- -------- --------
Total from Investment Activities................... 5.63 3.84 4.03 3.04 0.02
-------- -------- -------- -------- --------
Distributions:
Net investment income................................ -- (0.25) (0.20) (0.06) (0.07)
In excess of net investment income................... -- (0.02) -- -- --
Net realized gains................................... (2.58) (2.92) (3.42) (0.54) (0.95)
-------- -------- -------- -------- --------
Total Distributions................................ (2.58) (3.19) (3.62) (0.60) (1.02)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD......................... $ 22.51 $ 19.46 $ 18.81 $ 18.40 $ 15.96
======== ======== ======== ======== ========
Total Return........................................... 31.11% 22.75% 24.63% 19.75% (0.16)%
Ratios/Supplementary Data:
Net Assets at end of period (000).................... $868,901 $623,911 $532,525 $413,518 $389,567
Ratio of expenses to average net assets.............. 1.00% 0.99% 1.00% 0.98% 0.98%
Ratio of net investment income to average net
assets............................................. (0.36)% 1.32% 1.15% 0.38% 0.42%
Ratio of expenses to average net assets*............. 1.00% 0.99% 1.01% 0.98% 1.03%
Ratio of net investment income to average net
assets*............................................ (0.36)% 1.32% 1.14% 0.38% 0.37%
Portfolio turnover (a)............................... 158.43% 301.35% 435.30% 132.63% 70.67%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
138
<PAGE> 141
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES FUND
-----------------------------------------------------------
CLASS A
-----------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 19.37 $ 18.76 $ 18.36 $ 15.93 $ 16.96
------- ------- ------- ------- -------
Investment Activities:
Net investment income (loss).............................. (0.08) 0.21 0.17 0.02 0.04
Net realized and unrealized gains (losses) from
investments............................................. 5.65 3.58 3.80 2.98 (0.08)
------- ------- ------- ------- -------
Total from Investment Activities........................ 5.57 3.79 3.97 3.00 (0.04)
------- ------- ------- ------- -------
Distributions:
Net investment income..................................... -- (0.24) (0.15) (0.01) (0.03)
In excess of net investment income........................ -- (0.02) -- (0.02) (0.01)
Net realized gains........................................ (2.58) (2.92) (3.42) (0.54) (0.95)
------- ------- ------- ------- -------
Total Distributions..................................... (2.58) (3.18) (3.57) (0.57) (0.99)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 22.36 $ 19.37 $ 18.76 $ 18.36 $ 15.93
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)........................ 30.95% 22.52% 24.32% 19.50% (0.52)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $95,647 $43,370 $28,052 $11,178 $ 8,097
Ratio of expenses to average net assets................... 1.25% 1.25% 1.25% 1.23% 1.22%
Ratio of net investment income to average net assets...... (0.60)% 0.92% 0.90% 0.12% 0.27%
Ratio of expenses to average net assets*.................. 1.35% 1.34% 1.36% 1.33% 1.38%
Ratio of net investment income to average net assets*..... (0.70)% 0.83% 0.79% 0.02% 0.11%
Portfolio turnover (a).................................... 158.43% 301.35% 435.30% 132.63% 70.67%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
139
<PAGE> 142
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES FUND
-------------------------------------------------------
CLASS B
-------------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
----------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $ 18.82 $ 18.43 $ 18.14 $ 15.85 $ 17.44
-------- -------- -------- -------- --------
Investment Activities:
Net investment income (loss)......................... (0.15) 0.11 0.09 (0.07) (0.02)
Net realized and unrealized gains (losses) from
investments........................................ 5.35 3.44 3.69 2.90 (1.56)
-------- -------- -------- -------- --------
Total from Investment Activities................... 5.20 3.55 3.78 2.83 (1.58)
-------- -------- -------- -------- --------
Distributions:
Net investment income................................ -- (0.22) (0.07) -- (0.01)
In excess of net investment income................... -- (0.02) -- -- --
Net realized gains................................... (2.58) (2.92) (3.42) (0.54) --
-------- -------- -------- -------- --------
Total Distributions................................ (2.58) (3.16) (3.49) (0.54) (0.01)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD........................................ $ 21.44 $ 18.82 $ 18.43 $ 18.14 $ 15.85
======== ======== ======== ======== ========
Total Return (Excludes Sales Charge)................... 29.79% 21.73% 23.53% 18.47% (9.07)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................... $ 90,930 $ 37,409 $ 12,910 $ 2,787 $ 1,131
Ratio of expenses to average net assets.............. 2.00% 2.00% 2.00% 1.98% 2.12%(c)
Ratio of net investment income to average net
assets............................................. (1.35)% 0.01% 0.15% (0.63)% (0.55)%(c)
Ratio of expenses to average net assets*............. 2.00% 2.00% 2.01% 1.98% 2.12%(c)
Ratio of net investment income to average net
assets*............................................ (1.35)% 0.01% 0.14% (0.63)% (0.55)%(c)
Portfolio turnover (d)............................... 158.43% 301.35% 435.30% 132.63% 70.67%
</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.
140
<PAGE> 143
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH
OPPORTUNITIES
FUND
-------------
CLASS C
-------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
-----------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $21.47
------
Investment Activities:
Net investment income (loss).............................. (0.04)
Net realized and unrealized gains from investments........ 2.77
------
Total from Investment Activities........................ 2.73
------
Distributions:
Net realized gains........................................ (1.78)
------
Total Distributions......................................... (1.78)
------
NET ASSET VALUE,
END OF PERIOD............................................. $22.42
======
Total Return (Excludes Sales Charge)........................ 14.27% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $1,088
Ratio of expenses to average net assets................... 2.01% (c)
Ratio of net investment income to average net assets...... (1.31)%(c)
Portfolio turnover (d).................................... 158.43%
</TABLE>
- ------------
(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.
141
<PAGE> 144
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
----------------------------------
FIDUCIARY
----------------------------------
MARCH 26,
YEAR ENDED JUNE 30, 1996 TO
--------------------- JUNE 30,
1998 1997 1996(a)
-------- ------- ---------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.94 $ 10.75 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income (loss).............................. -- (0.02) --
Net realized and unrealized gains (losses) from
investments............................................. 2.44 1.31 0.78
-------- ------- -------
Total from Investment Activities........................ 2.44 1.29 0.78
-------- ------- -------
Distributions:
Net realized gains........................................ (1.33) (1.10) (0.03)
-------- ------- -------
Total Distributions..................................... (1.33) (1.10) (0.03)
-------- ------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 12.05 $ 10.94 $ 10.75
======== ======= =======
Total Return................................................ 23.58% 13.44% 13.39%(b)(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $114,951 $78,318 $83,371
Ratio of expenses to average net assets................... 1.06% 1.02% 0.96%(d)
Ratio of net investment income to average net assets...... (0.05)% (0.16)% (0.16)%(d)
Ratio of expenses to average net assets*.................. 1.09% 1.12% 1.05%(d)
Ratio of net investment income to average net assets*..... (0.08)% (0.26)% (0.25)%(d)
Portfolio turnover (e).................................... 83.77% 92.01% 59.57%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from date reorganized as a fund of The One Group.
(b) Not annualized.
(c) Represents total return for Class A Shares from December 1, 1995 through
March 25, 1996 plus total return for Fiduciary Shares for the period from
March 26, 1996 through June 30, 1996.
(d) Annualized.
(e) 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.
142
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
YEAR ENDED SEVEN MONTHS
JUNE 30, ENDED YEAR ENDED NOVEMBER 30,
-------------------- JUNE 30, ---------------------------------
1998 1997 1996(a) 1995 1994 1993
------- ------- ------------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................... $ 10.94 $ 10.73 $ 11.50 $ 9.36 $ 10.11 $ 9.48
------- ------- ------- ------- ------- -------
Investment Activities:
Net investment income (loss).............. (0.03) (0.04) (0.07) (0.04) (0.04) (0.02)
Net realized and unrealized gains (losses)
from investments........................ 2.44 1.35 1.40 2.35 (0.63) 0.88
------- ------- ------- ------- ------- -------
Total from Investment Activities........ 2.41 1.31 1.33 2.31 (0.67) 0.86
------- ------- ------- ------- ------- -------
Distributions:
Net investment income..................... -- -- -- -- -- (0.01)
Net realized gains........................ (1.33) (1.10) (2.10) (0.17) (0.08) (0.22)
------- ------- ------- ------- ------- -------
Total Distributions..................... (1.33) (1.10) (2.10) (0.17) (0.08) (0.23)
------- ------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD............................. $ 12.02 $ 10.94 $ 10.73 $ 11.50 $ 9.36 $ 10.11
======= ======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)........ 23.28% 13.52% 12.85% (b) 25.07% (6.66)% 9.10%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......... $21,634 $17,299 $18,356 $95,467 $77,540 $74,982
Ratio of expenses to average net assets... 1.31% 1.27% 1.05% (c) 1.03% 1.00% 1.01%
Ratio of net investment income to average
net assets.............................. (0.31)% (0.41)% (0.33)%(c) (0.36)% (0.38)% (0.21)%
Ratio of expenses to average net
assets*................................. 1.44% 1.45% 1.07% (c) 1.03% 1.00% 1.01%
Ratio of net investment income to average
net assets*............................. (0.44)% (0.59)% (0.35) (c) (0.36)% (0.38)% (0.21)%
Portfolio turnover (d).................... 83.77% 92.01% 59.57% 65.00% 51.00% 59.00%
</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) Upon reorganizing as a fund of The One Group, the Paragon Gulf South Growth
Fund became the Gulf South Growth Fund. Financial highlights for the periods
prior to March 26, 1996 represents the Paragon Gulf South Growth Fund. The
per share data for the periods prior to March 26, 1996 have been restated to
reflect the impact of restatement of net asset value from $15.70 to $10.00
effective March 26, 1996.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
143
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The One Group Family Of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
--------------------------------------------------------------------------
CLASS B
--------------------------------------------------------------------------
YEAR ENDED SEVEN MONTHS YEAR SEPTEMBER 12,
JUNE 30, ENDED ENDED 1994 TO
------------------ JUNE 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1996(a) 1995 1994(b)
------ ------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD......................... $10.84 $10.72 $11.56 $ 9.47 $10.40
------ ------ ------ ------ ------
Investment Activities:
Net investment income (loss)................ (0.03) (0.10) (0.06) (0.07) (0.01)
Net realized and unrealized gains (losses)
from investments.......................... 2.31 1.32 1.35 2.33 (0.92)
------ ------ ------ ------ ------
Total from Investment Activities.......... 2.28 1.22 1.29 2.26 (0.93)
------ ------ ------ ------ ------
Distributions:
Net realized gains.......................... (1.33) (1.10) (2.13) (0.17) --
------ ------ ------ ------ ------
Total Distributions....................... (1.33) (1.10) (2.13) (0.17) --
------ ------ ------ ------ ------
NET ASSET VALUE,
END OF PERIOD............................... $11.79 $10.84 $10.72 $11.56 $ 9.47
====== ====== ====== ====== ======
Total Return (Excludes Sales Charge).......... 22.24% 12.74% 12.47% (c) 24.21% (9.08)%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........... $8,567 $3,835 $2,545 $1,814 $ 231
Ratio of expenses to average net assets..... 2.06% 2.02% 1.87% (d) 1.78% 1.75% (d)
Ratio of net investment income to average
net assets................................ (1.02)% (1.16)% (1.10)%(d) (1.16)% (0.90)%(d)
Ratio of expenses to average net assets*.... 2.09% 2.12% 1.92% (d) 1.78% 1.75% (d)
Ratio of net investment income to average
net assets*............................... (1.05)% (1.26)% (1.15)%(d) (1.16)% (0.90)%(d)
Portfolio turnover (e)...................... 83.77% 92.01% 59.57% 65.00% 51.00%
</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) Upon reorganizing as a fund of The One Group, the Paragon Gulf South Growth
Fund became the Gulf South Growth Fund. Financial highlights for the periods
prior to March 26, 1996 represents the Paragon Gulf South Growth Fund. The
per share data for the periods prior to March 26, 1996 have been restated to
reflect the impact of restatement of net asset value from $15.48 to $10.00
effective March 26, 1996.
(b) Class B Shares commenced offering September 12, 1994.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
144
<PAGE> 147
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
-------------------------
CLASS C
-------------------------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
-------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 13.03
--------
Investment Activities:
Net investment income (loss).............................. (0.02)
Net realized and unrealized gains (losses) from
investments............................................. 0.29
--------
Total from Investment Activities........................ 0.27
--------
Distributions:
Net realized gains........................................ (1.33)
--------
Total Distributions..................................... (1.33)
--------
NET ASSET VALUE,
END OF PERIOD............................................. $ 11.97
========
Total Return (Excludes Sales Charge)........................ 3.08%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 90
Ratio of expenses to average net assets................... 2.05% (c)
Ratio of net investment income to average net assets...... (0.85)%(c)
Ratio of expenses to average net assets*.................. 2.07% (c)
Ratio of net investment income to average net assets*..... (0.87)%(c)
Portfolio turnover (d).................................... 83.77%
</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.
145
<PAGE> 148
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX FUND
----------------------------------------------------------------
FIDUCIARY
----------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 16.89 $ 15.17 $ 13.93 $ 13.46 $ 11.80
-------- -------- -------- -------- --------
Investment Activities:
Net investment income................................. 0.21 0.15 0.11 0.13 0.11
Net realized and unrealized gains (losses) from
investments......................................... 1.32 2.02 1.43 0.46 1.68
-------- -------- -------- -------- --------
Total from Investment Activities.................... 1.53 2.17 1.54 0.59 1.79
-------- -------- -------- -------- --------
Distributions:
Net investment income................................. (0.02) (0.17) (0.16) (0.08) (0.11)
In excess of net investment income.................... -- (0.13) (0.02) -- --
Net realized gains.................................... (0.43) (0.15) (0.12) (0.04) (0.01)
In excess of net realized gains....................... -- -- -- -- (0.01)
-------- -------- -------- -------- --------
Total Distributions................................. (0.45) (0.45) (0.30) (0.12) (0.13)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.......................... $ 17.97 $ 16.89 $ 15.17 $ 13.93 $ 13.46
======== ======== ======== ======== ========
Total Return............................................ 9.54% 14.64% 11.22% 4.20% 15.44%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................... $586,741 $449,949 $347,790 $218,299 $145,640
Ratio of expenses to average net assets............... 0.88% 0.86% 0.97% 1.04% 1.02%
Ratio of net investment income to average net
assets.............................................. 1.29% 1.00% 1.04% 1.25% 1.27%
Ratio of expenses to average net assets*.............. 0.88% 0.86% 1.00% 1.04% 1.02%
Ratio of net investment income to average net
assets*............................................. 1.29% 1.00% 1.01% 1.25% 1.27%
Portfolio turnover (a)................................ 9.90% 9.61% 6.28% 4.67% 7.74%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
146
<PAGE> 149
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX FUND
---------------------------------------------------------
CLASS A
---------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 16.92 $ 15.16 $ 13.92 $13.49 $11.80
------- ------- ------- ------ ------
Investment Activities:
Net investment income..................................... 0.19 0.11 0.14 0.12 0.09
Net realized and unrealized gains (losses) from
investments............................................. 1.31 2.03 1.40 0.43 1.67
------- ------- ------- ------ ------
Total from Investment Activities........................ 1.50 2.14 1.54 0.55 1.76
------- ------- ------- ------ ------
Distributions:
Net investment income..................................... -- (0.13) (0.16) (0.08) (0.05)
In excess of net investment income........................ -- (0.10) (0.02) -- --
Net realized gains........................................ (0.43) (0.15) (0.12) (0.04) (0.02)
------- ------- ------- ------ ------
Total Distributions..................................... (0.43) (0.38) (0.30) (0.12) (0.07)
------- ------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD.............................. $ 17.99 $ 16.92 $ 15.16 $13.92 $13.49
======= ======= ======= ====== ======
Total Return (Excludes Sales Charge)........................ 9.34% 14.31% 11.20% 3.87% 15.18%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $24,060 $12,562 $10,789 $5,028 $2,395
Ratio of expenses to average net assets................... 1.13% 1.11% 1.22% 1.28% 1.26%
Ratio of net investment income to average net assets...... 1.11% 0.73% 0.79% 1.09% 1.15%
Ratio of expenses to average net assets*.................. 1.23% 1.19% 1.35% 1.38% 1.36%
Ratio of net investment income to average net assets*..... 1.01% 0.65% 0.66% 0.99% 1.05%
Portfolio turnover (a).................................... 9.90% 9.61% 6.28% 4.67% 7.74%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
147
<PAGE> 150
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX FUND
-------------------------------------------------------------
CLASS B
-------------------------------------------------------------
JANUARY 14,
YEAR ENDED JUNE 30, 1994 TO
-------------------------------------------- JUNE 30,
1998 1997 1996 1995 1994(a)
------- ------- ------ ------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 16.44 $ 14.79 $13.73 $13.40 $13.00
------- ------- ------ ------ ------
Investment Activities:
Net investment income (loss).............................. 0.08 0.09 0.03 0.03 0.06
Net realized and unrealized gains from investments
(losses)................................................ 1.24 1.86 1.32 0.41 0.34
------- ------- ------ ------ ------
Total from Investment Activities........................ 1.32 1.95 1.35 0.44 0.40
------- ------- ------ ------ ------
Distributions:
Net investment income..................................... -- (0.08) (0.15) (0.07) --
In excess of net investment income........................ -- (0.07) (0.02) -- --
Net realized gains........................................ (0.43) (0.15) (0.12) (0.04) --
------- ------- ------ ------ ------
Total Distributions..................................... (0.43) (0.30) (0.29) (0.11) --
------- ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD.............................. $ 17.33 $ 16.44 $14.79 $13.73 $13.40
======= ======= ====== ====== ======
Total Return (Excludes Sales Charge)........................ 8.48% 13.37% 9.97% 3.17% 3.23% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $13,307 $10,033 $5,856 $3,687 $1,872
Ratio of expenses to average net assets................... 1.88% 1.86% 1.97% 2.04% 2.00%(c)
Ratio of net investment income to average net assets...... 0.26% 0.08% 0.04% 0.25% 1.37% (c)
Ratio of expenses to average net assets*.................. 1.88% 1.86% 2.00% 2.04% 2.00% (c)
Ratio of net investment income to average net assets*..... 0.26% 0.08% 0.01% 0.25% 1.37% (c)
Portfolio turnover (d).................................... 9.90% 9.61% 6.28% 4.67% 7.74%
</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.
148
<PAGE> 151
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY
INDEX FUND
--------------
CLASS C
--------------
NOVEMBER 4,
1997 TO
JUNE 30,
1998(a)
--------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $15.70
------
Investment Activities:
Net investment income (loss).............................. 0.06
Net realized and unrealized gains from investments
(losses)................................................ 2.45
------
Total from Investment Activities........................ 2.51
------
Distributions:
Net realized gains........................................ (0.30)
------
Total Distributions..................................... (0.30)
------
NET ASSET VALUE, END OF PERIOD.............................. $17.91
======
Total Return (Excludes Sales Charge)........................ 16.34%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 119
Ratio of expenses to average net assets................... 1.87%(c)
Ratio of net investment income to average net assets...... 2.88%(c)
Portfolio turnover (d).................................... 9.90%
</TABLE>
- ------------
(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.
149
<PAGE> 152
- --------------------------------------------------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
To the Shareholders and Board of Trustees of
The One Group Family of Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and related statements of operations, of changes
in net assets and of cash flows and the financial highlights present fairly, in
all material respects, the financial position of the Asset Allocation Fund, the
Income Equity Fund, the Equity Index Fund, the Value Growth Fund, the Large
Company Value Fund, the Disciplined Value Fund, the Large Company Growth Fund,
the Growth Opportunities Fund, the Small Capitalization Fund and the
International Equity Index Fund (ten series of The One Group Family of Mutual
Funds), at June 30, 1998, the results of each of their operations for the period
then ended, the changes in each of their net assets, and the cash flows of the
Asset Allocation Fund, the Growth Opportunities Fund and the International
Equity Index Fund for the periods presented and the financial highlights for
each of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of The One Group
Family of Mutual Funds' management; our responsibility is to express an opinion
on these financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at June 30, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
August 18, 1998
150
<PAGE> 153
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
ADVISORS
CORPORATION
[BANC ONE LOGO]
TOG-F-038-AN (8/98)
