ONE GROUP
485APOS, 1998-12-23
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<PAGE>   1
   
    AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON DECEMBER 23, 1998
                     REGISTRATION NOS. 2-95973 AND 811-4236
    

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM N-1A
           REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |X|
                       POST-EFFECTIVE AMENDMENT NO. 47 |X|
                                       AND
           REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT |X|
                                     OF 1940
   
                              AMENDMENT NO. 48 |X|
    

                                THE ONE GROUP(R)
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

                              1111 POLARIS PARKWAY
                                 P.O. BOX 710211
                            COLUMBUS, OHIO 43271-0211
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                                 (800) 480-4311
                         (REGISTRANT'S TELEPHONE NUMBER)

                                 MARK S. REDMAN
                                3435 STELZER ROAD
                              COLUMBUS, OHIO 43219
                     (NAME AND ADDRESS OF AGENT FOR SERVICE)

                                   COPIES TO:


    ALAN G. PRIEST, ESQUIRE                     MICHAEL V. WIBLE, ESQUIRE
    ROPES & GRAY                                BANK ONE CORPORATION
    ONE FRANKLIN SQUARE                         100 EAST BROAD STREET, 18TH FL.
    1301 K STREET, N.W., SUITE 800E             COLUMBUS, OHIO 43271-0158
    WASHINGTON, D.C. 20005

  APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: IMMEDIATELY UPON EFFECTIVENESS
  IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)


   ___     on November 1, 1998 pursuant to paragraph(b) 
   ___     on (DATE)  pursuant to paragraph(a)(1) 
   ___     75 days after filing pursuant to paragraph(a)(2)
    X      on March 18, 1999 pursuant to paragraph(a)(2) of Rule 485.
   ___

If appropriate, check the following box:

   ___     post-effective amendment designates a new effective date for a
           previously filed post-effective amendment.

Title of Securities Being Registered: Shares of Beneficial Interest.


<PAGE>   2


                                THE ONE GROUP(R)

                              CROSS REFERENCE SHEET
   

<TABLE>
<CAPTION>
FORM N-1A PART A ITEM                            PROSPECTUS CAPTION
- ---------------------                            ------------------
<S>                                              <C>
1.       Cover Page                              Cover Page
2.       Synopsis                                About the Funds
3.       Financial Highlights
4.       General Description                     About the Funds, More About the
         of Registrant                           Funds, How To Do Business with The
                                                 One Group(R) Mutual Funds; Details About the
                                                 Fund's Investment Practices and Policies;
5.       Management of the Fund                  About the Funds; More About the
                                                 Funds; Organization & Management 
                                                 of the Funds;
6.       Capital Stock and Other Securities      About the Fund; Shareholder Information
7.       Purchase of Securities                  How To Do Business with
         Being Offered                           The One Group(R) Mutual Funds, Organization
                                                 & Management of the Funds
8.       Redemption or Repurchase                How To Do Business with 
                                                 The One Group(R) Mutual Funds
9.       Pending Legal Proceedings               Inapplicable

                                                 COMBINED STATEMENT OF
                                                 ADDITIONAL INFORMATION
FORM N-1A PART B ITEM                            CAPTION
- ---------------------                            -------

10.      Cover Page                              Cover Page
11.      Table of Contents                       Table of Contents
12.      General Information and History         The Trust; Additional Information
                                                 Description of Shares
13.      Investment Objective and Policies       Investment Objectives and
                                                 Policies
14.      Management of the Fund                  Management of the Trust
15.      Control Persons and Principal           Additional Information -
         Holders of Securities                   Miscellaneous
16.      Investment Advisory and Other
         Services                                Management of the Trust
17.      Brokerage Allocation                    Management of the Trust -
                                                 Portfolio Transactions
18.      Capital Stock and Other Securities      Valuation; Additional
                                                 Information Regarding the
                                                 Calculation of Per Share Net
                                                 Asset Value;
                                                 Additional Purchase
                                                 and Redemption Information;
                                                 Additional Information
19.      Purchase, Redemption and Pricing of     Valuation; Additional
         Securities Being Offered                Information Regarding the
                                                 Calculation Per Share Net Asset
                                                 Value; Additional Purchase and
                                                 Redemption Information;
                                                 Management of the Trust
20.      Tax Status                              Investment Objectives and
                                                 Policies - Additional Tax
                                                 Information Concerning the Funds
21.      Underwriters                            Management of the Trust -
                                                 Distributor
22.      Calculation of Performance Data         Additional Information -
                                                 Calculation of Performance Data
23.      Financial Statements                    Incorporated by Reference
</TABLE>
    


<PAGE>   3


                                     PART A
   

Part A of Post-effective Amendment No. 46 (filed October 19, 1998) to The One
Group Registration Statement on Form N-1A for One Group Institutional Prime
Money Market Fund, One Group Tax Exempt Money Market Fund, One Group Treasury
Money Market Fund, One Group Texas Municipal Bond Fund, One Group Investor Fixed
Income Fund and One Group Investor Aggressive Growth Fund is incorporated herein
by reference.
    



<PAGE>   4
   
                            ONE GROUP(R) MUTUAL FUNDS

                                  EQUITY FUNDS

                               COMBINED PROSPECTUS

                                 MARCH __, 1999

                           One Group(R) Balanced Fund
                       One Group(R) Large Cap Growth Fund
                       One Group(R) Large Cap Value Fund
                        One Group(R) Mid Cap Growth Fund
                  One Group(R) International Equity Index Fund
                        One Group(R) Mid Cap Value Fund
                         One Group(R) Equity Index Fund
                        One Group(R) Equity Income Fund
                      One Group(R) Diversified Equity Fund
                       One Group(R) Small Cap Growth Fund
                        One Group(R) Small Cap Value Fund
                      One Group(R) Diversified Mid Cap Fund
                   One Group(R) Diversified International Fund
                    One Group(R) Market Expansion Index Fund
    

     This prospectus describes fourteen mutual funds with a variety of
investment objectives, including total return, capital appreciation, current
income, and long-term capital growth. The information in this prospectus is
important. Please read it carefully before you invest, and save it for future
reference.

     PLEASE REMEMBER THAT SHARES OF THE FUNDS: - ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR GUARANTEED BY BANK ONE CORPORATION OR ITS AFFILIATES; - ARE NOT INSURED
OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY FEDERAL OR
STATE GOVERNMENTAL AGENCY; - INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE
                     LOSS OF THE PRINCIPAL AMOUNT INVESTED.

     THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
                                    OFFENSE.


<PAGE>   5

   
<TABLE>
<CAPTION>

TABLE OF CONTENTS


<S>                                                                                                               <C>
A BRIEF PREVIEW OF THE FUNDS                                                                                          1
  ABOUT THE FUNDS                                                                                                     2
  One Group(R)Balanced Fund                                                                                           5
  One Group(R)Large Cap Growth Fund                                                                                  11 
  One Group(R)Large Cap Value Fund                                                                                   17
  One Group(R)Mid Cap Growth Fund                                                                                    23
  One Group(R)International Equity Index Fund                                                                        29
  One Group(R)Mid Cap Value Fund                                                                                     35
  One Group(R)Equity Index Fund                                                                                      40
  One Group(R)Equity Income Fund                                                                                     47
  One Group(R)Diversified Equity Fund                                                                                53
  One Group(R)Small Cap Growth Fund                                                                                  60
  One Group(R)Small Cap Value Fund                                                                                   67
  One Group(R)Diversified Mid Cap Fund                                                                               70
  One Group(R)Diversified International Fund                                                                         73
  One Group(R)Market Expansion Index Fund                                                                            76
MORE ABOUT THE FUNDS                                                                                                 79
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS                                                                   81
  Purchasing Fund Shares                                                                                             81
  Sales Charges                                                                                                      85
  Sales Charge Reductions and Waivers                                                                                87
  Redeeming Fund Shares                                                                                              90
SHAREHOLDER INFORMATION                                                                                              93
  Voting Rights                                                                                                      93
  Dividend Policies                                                                                                  95
  Tax Treatment of the Funds                                                                                         96
  Tax Treatment of Shareholders                                                                                      96
  Shareholder Inquiries                                                                                              96
ORGANIZATION AND MANAGEMENT OF THE FUNDS                                                                             97
  The Funds                                                                                                          97
  The Board of Trustees                                                                                              97
  The Advisor                                                                                                        97
  The Sub-Advisor                                                                                                    98
  The Distributor                                                                                                    98
  The Administrator and Sub-Administrator                                                                            98 
  The Transfer Agent, Custodian and Sub-Custodian                                                                    98
DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES                                                          100
  Investment Practices                                                                                              100
  Investment Risks                                                                                                  104
  Investment Policies                                                                                               105
APPENDIX: DESCRIPTION OF RATINGS                                                                                    107
</TABLE>
    

                                       2

<PAGE>   6


   
A BRIEF PREVIEW OF THE FUNDS

WHAT ARE THE GOALS OF THE ONE GROUP EQUITY FUNDS?
    

The Funds are designed for a variety of investment objectives, including total
return, capital appreciation, current income, and long-term capital growth. Each
Fund pursues a different objective and involves different risks. Please read
about each Fund before investing.

WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?

The Funds normally will invest in a variety of equity securities, including
common stock. The Funds also may invest in debt securities and preferred stocks
which are convertible into common stock, and lend their portfolio securities.
Most of the Funds may invest in securities of foreign issuers.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?

Equity securities such as those in which the Funds may invest are more volatile
and carry more risk than some other forms of investment. Accordingly, as with
all equity investments, you may lose money by investing in the Funds. The Funds
may invest in derivative securities. These securities may expose the Funds to
special risks. In addition, investments in foreign securities may expose the
Funds to risks that are different from investments in U.S. securities. An
investment in the Funds is not a deposit of BANK ONE CORPORATION or its
affiliates and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. For more information about risks,
please read "More About the Funds" and "Investment Risks."

WHAT CLASSES OF SHARES ARE AVAILABLE?

   
The Funds currently offer four classes of Shares: Class A, Class B, Class C and
Class I. Class A, Class B and Class C shares are offered to the general public.
Class I shares are offered to institutional investors, including affiliates of
BANK ONE CORPORATION and any bank, depository institution, insurance company,
pension plan or other organization authorized to act in fiduciary, advisory,
agency, custodial or similar capacities. The section called "How To Do Business
With The One Group Mutual Funds" will provide more information. Class C shares
are not available for purchase in all of the Funds. Class I shares are not
available to Individual Retirement Accounts ("IRA").
    

HOW DO I PURCHASE AND REDEEM SHARES?

   
You may buy and redeem shares of the Funds on any day that the Funds are open
for business. Class C shares are not available for purchase in all of the Funds.
Purchase and redemption procedures are explained in greater detail in "How To Do
Business With The One Group." For additional information, call The One Group
Services Company at 1-800-480-4111.
    

HOW ARE DIVIDENDS PAID?

   
Generally, dividends are declared on the last business day of each month and are
distributed periodically on the first business day of each month. One Group
International Equity Index Fund, however, distributes dividends annually. Any
capital gains are distributed at least annually. Distributions are paid in
additional shares of the same class unless you elect to take the payment in
cash. For a more detailed discussion of dividends, see "Dividend Policies."
    




                                       3
<PAGE>   7


WHO MANAGES THE FUNDS?

Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Funds.
Banc One Investment Advisors is paid a fee for its services. Independence
International Associates, Inc. (the "Sub-Advisor") serves as Sub-Advisor to the
International Equity Index Fund. The Sub-Advisor's fees are paid by Banc One
Investment Advisors. A more detailed discussion regarding Banc One Investment
Advisors, its services and compensation can be found in the Prospectus under the
headings "The Advisor" and "Expense Summary." Additional information regarding
the Sub-Advisor is located in the Prospectus under the heading "The
Sub-Advisor."



                                       4
<PAGE>   8


   
ONE GROUP(R) Balanced Fund
    

INVESTMENT OBJECTIVE

The Fund seeks to provide total return while preserving capital.

PRINCIPAL INVESTMENT STRATEGY

   
The Fund invests in a combination of stocks, fixed income securities and money
market instruments. Banc One Investment Advisors will regularly review the
Fund's asset allocations and vary them over time to favor investments which they
believe will provide the most favorable total return. In making asset allocation
decisions, Banc One Investment Advisors will evaluate projections of risk,
market and economic conditions, volatility, yields and expected return. Because
the Fund seeks total return over the long term, Banc One Investment Advisors
will not attempt to time the market. Rather, asset allocation shifts will be
made gradually over time. This Fund was formerly called The One Group Asset
Allocation Fund.
    

PORTFOLIO SECURITIES

The Fund normally will invest between 40% and 75% of its total assets in all
types of equity securities, including the stock of both large and small
capitalization companies, as well as growth and value securities. Up to 20% of
the equities held by the Fund may be foreign securities, including American
Depository Receipts. Between 25% and 60% of the Fund's total assets will be
invested in fixed income securities, including bonds, notes, and other debt
securities. The balance of the Fund's total assets will be invested in money
market instruments. For a list of all the securities in which the Fund may
invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities, which may increase or decrease in value.
As a result, the value of your investment in the Fund may increase or decrease
in value. The Fund also will invest in fixed income securities. The value of
these securities will change in response to interest rate changes and other
factors. This is especially true to the extent that the Fund invests in debt
securities in the lowest investment grade category. Such securities have
speculative characteristics. Before you invest, please read "More About the
Funds" and "Investment Practices."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.



                                       5
<PAGE>   9
SHAREHOLDER EXPENSES
   
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B        CLASS C        CLASS I
- -----------------------------------                                  -------        -------        -------        -------
<S>                                                                   <C>            <C>           <C>           <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                   5.25%          none          none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                            none(2)       5.00%          1.00%         none
Redemption Fees                                                          none          none           none          none
Exchange Fees                                                            none          none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees (after fee
  waiver)(4)                                                             .55%          .55%           .55%          .55%
12b-1 Fees (after fee waiver)(5)                                         .25%         1.00%          1.00%          none
Other Expenses                                                           .40%          .40%           .40%          .40%
      Total Fund Operating Expenses
        (after fee waivers)(6)                                          1.20%         1.95%          1.95%          .95%

</TABLE>

    

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from the redemption amounts paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.

(4)  Without the fee waiver, Investment Advisory Fees would be .65% for all
     classes of shares.

(5)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

(6)  Total Operating Expenses have been revised to reflect fee waivers. Without
     the voluntary reduction of Investment Advisory and 12b-1 fees, Total
     Operating Expenses would be 1.40% for Class A shares, 2.05% for Class B
     shares, 2.05% for Class C shares and 1.05% for Class I shares.

EXAMPLE

An investor  would pay the following  expenses on a $1,000  investment in the 
Fund,  assuming:  (1) payment  of the maximum sales  charge;  (2) 5% annual  
return;  and (3) redemption at the end of each time period.

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                  <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $115               $190
Class A (without fee waivers)                            $66                 $94               $125               $212
Class B                                                  $70                 $91               $125               $208
Class B (without fee waiver)                             $71                 $94               $130               $221
Class C                                                  $30                 $61               $105               $227
Class C (without fee waiver)                             $31                 $64               $110               $238
Class I                                                  $10                 $30               $ 53               $117
Class I (without fee waiver)                             $11                 $33               $ 58               $128
</TABLE>

    

Assuming no redemption the end of each time period, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                  <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $115               $190
Class A (without fee waivers)                            $66                 $94               $125               $212
</TABLE>
    

                                       6
<PAGE>   10
   
<TABLE>
<CAPTION>
<S>                                                   <C>                 <C>               <C>                <C> 
Class B                                                  $20                 $61               $105               $208
Class B (without fee waiver)                             $21                 $64               $110               $221
Class C                                                  $20                 $61               $105               $227
Class C (without fee waiver)                             $21                 $64               $110               $238
Class I                                                  $10                 $30               $ 53               $117
Class I (without fee waiver)                             $11                 $33               $ 58               $128
</TABLE>
    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       7
<PAGE>   11


   
ONE GROUP(R) BALANCED FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance over the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>
                                                                             YEAR ENDED JUNE 30,
                                                                             -------------------
CLASS I                                     1998            1997           1996           1995           1994           1993(a)
- -------                                     ----            ----           ----           ----           ----           -------
<S>                                    <C>             <C>            <C>            <C>            <C>            <C>        
NET ASSET VALUE, BEGINNING OF PERIOD   $     12.98     $     11.71    $     10.73    $      9.64    $     10.06    $     10.00
Investment Activities:
  Net investment income                       0.40            0.43           0.41           0.38           0.29           0.07
  Net realized and unrealized gains
    (losses) from investments                 2.24            1.81           1.16           1.12          (0.38)          0.06
Total from Investment Activities              2.64            2.24           1.57           1.50          (0.09)          0.13
Distributions:
  From net investment income                 (0.39)          (0.43)         (0.41)         (0.37)         (0.29)         (0.07)
  From 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)         (0.07)
NET ASSET VALUE, END OF PERIOD         $     13.80     $     12.98    $     11.71    $     10.73    $      9.64    $     10.06
Total Return                                 22.12%          20.16%         14.87%         16.06%         (1.01)%         5.45%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)    $   105,243     $    94,971    $    50,323    $    37,658    $    42,751    $    30,441
  Ratio of expenses to average net
    assets                                    0.85%           0.80%          0.94%          1.06%          1.06%          0.90%(b)
  Ratio of net investment income to
    average net assets                        3.03%           3.55%          3.58%          3.72%          2.91%          3.03%(b)
  Ratio of expenses to average net
    assets*                                   1.03%           1.00%          1.19%          1.31%          1.33%          1.34%(b)
  Ratio of net investment income to
    average net assets*                       2.85%           3.35%          3.33%          3.47%          2.64%          2.59%(b)
  Portfolio turnover(c)                      46.04%          80.96%         73.38%        115.36%         56.55%          4.05%
</TABLE>
    

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Class I Shares commenced offering on April 5, 1993. (b)Annualized.
     (c)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued.



                                       8
<PAGE>   12

   
<TABLE>
<CAPTION>
                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS A                                   1998           1997           1996           1995          1994          1993(a)
- -------                                   ----           ----           ----           ----          ----          -------
<S>                                    <C>            <C>            <C>            <C>           <C>           <C>       
NET ASSET VALUE, BEGINNING OF PERIOD   $    13.00     $    11.72     $    10.74     $     9.65    $    10.06    $    10.00
Investment Activities:
  Net investment income                      0.36           0.39           0.37           0.35          0.27          0.05
  Net realized and unrealized gains
    (losses) from investments                2.24           1.83           1.16           1.13         (0.38)         0.07
Total from Investment Activities             2.60           2.22           1.53           1.48         (0.11)         0.12
Distributions:
  From net investment income                (0.36)         (0.40)         (0.37)         (0.34)        (0.26)        (0.06)
  In excess of net investment income         --             --             --            (0.01)         --            --
  From 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)        (0.06)
NET ASSET VALUE, END OF PERIOD         $    13.81     $    13.00     $    11.72     $    10.74    $     9.65    $    10.06
Total Return (Excludes Sales Charge)        21.71%         19.85%         14.48%         15.76%        (1.19)%        5.23%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)    $   50,456     $   31,379     $   17,849     $    4,745    $    1,691    $      571
  Ratio of expenses to average net
    assets                                   1.10%          1.05%          1.19%          1.31%         1.33%         1.15%(b)
  Ratio of net investment income to
    average net assets                       2.77%          3.30%          3.33%          3.57%         2.68%         2.84%(b)
  Ratio of expenses to average net
    assets*                                  1.38%          1.34%          1.54%          1.66%         1.67%         1.62%(b)
  Ratio of net investment income to
    average net assets*                      2.49%          3.01%          2.98%          3.22%         2.34%         2.37%(b)
  Portfolio turnover(c)                     46.04%         80.96%         73.38%        115.36%        56.55%         4.05%

</TABLE>
    

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)The Fund commenced operations on April 2, 1993. (b)Annualized.
     (c)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued.



                                       9
<PAGE>   13


   
ONE GROUP(R) BALANCED FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>
                                                                                YEAR ENDED JUNE 30,
                                                                                -------------------
CLASS B                                          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:
  From net investment income                       (0.26)          (0.31)         (0.28)         (0.27)        (0.08)
  In excess of net investment income                --              --             --            (0.01)         --
  From 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)Class B commenced offering shares on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.



                                       10
<PAGE>   14


   
ONE GROUP(R)  LARGE CAP GROWTH FUND
    

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation and growth of income by investing
primarily in equity securities.

INVESTMENT STRATEGY

   
The Fund invests primarily in equity securities of large, well-established
companies. The weighted average capitalization of companies in which the Fund
invests normally will exceed the market median capitalization of the Standard &
Poor's 500 Composite Stock Price Index ("S&P 500").* This Fund was formerly
called The One Group Large Company Growth Fund.
    

PORTFOLIO SECURITIES

The Fund normally invests at least 65% of its total assets in the equity
securities of companies described above, including common stock, warrants and
rights to buy common stocks. The remainder of the Fund's total assets may be
invested in nonconvertible fixed income securities, options and futures,
repurchase agreements, and securities issued by the U.S. government and its
agencies and instrumentalities. For daily cash management purposes, the Fund may
invest in repurchase agreements and cash equivalents. For a list of all the
securities in which the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities, which may increase or decrease in value.
As a result, the value of your investment in the Fund may increase or decrease
in value. The Fund also may invest in fixed income securities. The value of
these securities will change in response to interest rate changes and other
factors. This is especially true to the extent the Fund invests in debt
securities with speculative characteristics. Before you invest, please read
"More About the Funds" and "Investment Practices."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

   
*    "S&P 500" is a registered service mark of Standard & Poor's Corporation,
     which does not sponsor and is in no way affiliated with the Fund.
    




                                       11

<PAGE>   15


   
<TABLE>
<CAPTION>
                                    SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)             CLASS A    CLASS B    CLASS C      CLASS I   
- -----------------------------------             -------    -------    -------      -------   
<S>                                              <C>        <C>      <C>          <C>
Maximum Sales Charge Imposed on Purchases                                                   
  (as a percentage of offering price)              5.25%      none      none        none    
Maximum Contingent Deferred Sales Charge                                                    
  (as a percentage of original purchase                                                     
  price or redemption proceeds, as                                                          
  applicable)                                      none(2)    5.00%     1.00%       none    
Redemption Fees                                    none       none      none        none    
Exchange Fees                                      none       none      none        none    
ANNUAL OPERATING EXPENSES(3)                                                                
(as a percentage of average daily net assets)                                               
Investment Advisory Fees                            .71%       .71%      .71%        .71%   
12b-1 Fees (after fee waiver)(4)                    .25%      1.00%     1.00%       none    
Other Expenses                                      .23%       .23%      .23%        .23%   
Total Fund Operating Expenses                                                               
(after fee waiver)(5)                              1.19%      1.94%     1.94%        .94%   
                                                                                  
</TABLE>

    

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from redemption amounts paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.

   
(4)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.
    
   
(5)  Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
     would be 1.29% for Class A shares.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $88               $114               $189
Class A (without fee waiver)                             $65                 $91               $120               $200
Class B                                                  $70                 $91               $125               $207
Class C                                                  $30                 $61               $105               $226
Class I                                                  $10                 $30               $ 52               $115
</TABLE>
    


                                       12
<PAGE>   16

Assuming no redemption at the end of the periods, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $88               $114               $189
Class A (without fee waiver)                             $65                 $91               $120               $200
Class B                                                  $20                 $61               $105               $207
Class C                                                  $20                 $61               $105               $226
Class I                                                  $10                 $30                $52               $115
</TABLE>
    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       13
<PAGE>   17


   
ONE GROUP(R) LARGE CAP  GROWTH FUND   FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.


   
<TABLE>
<CAPTION>
                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS I                                  1998            1997         1996       1995        1994         1993        1992(b)
- -------                                  ----            ----         ----       ----        ----         ----        -------
<S>                                    <C>            <C>            <C>        <C>        <C>          <C>           <C>         
Net Asset Value, Beginning of Period   $    19.44     $    15.44     $  13.47   $  11.32   $    10.92   $     9.85    $ 10.00     
Investment Activities:                                                                                                            
  Net investment income                      0.04           0.12         0.18       0.20         0.20         0.23       0.08     
  Net realized and unrealized gains                                                                                               
    (losses) from investments                6.13           4.79         2.14       3.04         0.67         1.12      (0.16)    
Total from Investment Activities             6.17           4.91         2.32       3.24         0.87         1.35      (0.08)    
Distributions:                                                                                                                    
  From net investment income                (0.02)         (0.11)       (0.18)     (0.20)       (0.20)       (0.23)     (0.07)    
  From net realized gains                   (2.88)         (0.80)       (0.17)     (0.89)       (0.27)       (0.05)      --       
Total Distributions                         (2.90)         (0.91)       (0.35)     (1.09)       (0.47)       (0.28)     (0.07)    
NET ASSET VALUE, END OF PERIOD         $    22.71     $    19.44     $  15.44   $  13.47   $    11.32   $    10.92    $  9.85     
Total Return                                35.75%         33.11%       17.36%     21.85%        8.04%       13.92%     (0.80)%(c)
RATIOS/SUPPLEMENTARY DATA:                                                                                                        
  Net Assets at end of period (000)    $1,510,521     $1,142,864     $745,986   $531,595   $  150,035   $   41,317    $25,019     
  Ratio of expenses to average net                                                                                                
    assets                                   0.99%          0.99%        0.96%      1.00%        0.78%        0.39%      0.30%(c) 
  Ratio of net investment income to                                                                                               
    average net assets                       0.21%          0.69%        1.20%      1.72%        1.87%        2.24%      2.37%(c) 
  Ratio of expenses to average net                                                                                                
    assets*                                  0.99%          0.99%        0.99%      1.00%        1.13%        1.43%      1.49%(c) 
  Ratio of net investment income to                                                                                               
    average net assets*                      0.21%          0.69%        1.17%      1.72%        1.52%        1.21%      1.12%(c) 
  Portfolio turnover(a)                    117.34%         57.17%       35.51%     14.22%        9.04%       10.61%      3.09%    
</TABLE>                                                                     
    

*    During the period, certain fees were voluntarily reduced. If such 
     voluntary fee reductions had not occurred, the ratios would have been as
     indicated. (a)Portfolio turnover is calculated on the basis of the Fund as
     a whole without distinguishing among the classes of shares issued. (b)The
     Fund commenced operations on February 28, 1992. (c)Annualized.



                                       14

<PAGE>   18

   
<TABLE>
<CAPTION>


                                                                       YEAR ENDED JUNE 30,
                                                                       -------------------
CLASS A                                        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                           (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:
  From net investment income                       --             (0.07)          (0.14)         (0.16)         (0.04)
  In excess of net investment income              (0.01)           --              --            (0.01)          --
  From 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)Class A Shares commenced offering on January 1, 1994. (b)Not annualized.
     (c)Annualized. (d)Portfolio turnover is calculated on the basis of the Fund
     as a whole without distinguishing among the classes of shares issued.


                                       15

<PAGE>   19



   
ONE GROUP(R) LARGE CAP  GROWTH FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>
                                                                           YEAR ENDED JUNE 30,
                                                                           -------------------
CLASS B                                         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:
  From net investment income                        --              --             (0.05)         (0.09)        (0.03)
  In excess of net investment income                --              --              --            (0.01)         --
  From 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 (loss)
    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 (loss)
    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)Class B Shares commenced offering on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.

   
<TABLE>
<CAPTION>
                                                       NOVEMBER 4,
                                                        1997 TO
CLASS C                                              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.




                                       16
<PAGE>   20



   
ONE GROUP(R) LARGE CAP VALUE FUND
    

INVESTMENT OBJECTIVE

The Fund seeks capital appreciation with the incidental goal of achieving
current income by investing primarily in equity securities.

INVESTMENT STRATEGY

   
The Fund invests in equity securities of large capitalization companies that are
believed to be selling below their long-term investment values. The weighted
average capitalization of companies in which the Fund invests normally will
exceed the market median capitalization of the Standard & Poor's 500 Composite
Stock Price Index ("S&P 500").* The Fund also may invest in the stock of
companies which have "breakup values" well in excess of current market values or
which have uniquely undervalued corporate assets. This Fund was formerly called
The One Group Large Company Value Fund.
    

PORTFOLIO SECURITIES

The Fund normally invests at least 65% of its total assets in the equity
securities of companies described above, including common stocks and debt
securities and preferred stock that is convertible to common stock. A portion of
the Fund's assets will be held in cash equivalents. For a list of all the
securities in which the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities, which may increase or decrease in value.
As a result, the value of your investment in the Fund may increase or decrease
in value. Before you invest, please read "More About the Funds" and "Investment
Practices."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

   
*    "S&P 500" is a registered service mark of Standard & Poor's Corporation,
     which does not sponsor and is in no way affiliated with the Fund.
    



                                       17
<PAGE>   21

   
<TABLE>
<CAPTION>

                                 SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)         CLASS A       CLASS B       CLASS C       CLASS I        
- -----------------------------------------   -------       -------       -------       -------        
<S>                                        <C>           <C>           <C>          <C>
Maximum Sales Charge Imposed on Purchases                                                      
  (as a percentage of offering price)          5.25%         none          none        none           
Maximum Contingent Deferred Sales Charge                                                              
  (as a percentage of original purchase                                                               
  price or redemption proceeds, as                                                                    
  applicable)                                  none(2)       5.00%         1.00%       none           
Redemption Fees                                none          none          none        none           
Exchange Fees                                  none          none          none        none           
ANNUAL OPERATING EXPENSES(3)                                                                          
  (as a percentage of average daily net                                                               
  assets)                                                                                             
                                                                                                      
Investment Advisory Fees                        .74%          .74%          .74%        .74%          
12b-1 Fees (after fee waiver)(4)                .25%         1.00%         1.00%       none           
Other Expenses                                  .26%          .26%          .26%        .26%          
Total Fund Operating Expenses (after                                                                  
  fee waiver)(5)                               1.25%         2.00%         2.00%       1.00%          
</TABLE>
    

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from redemption amounts paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.

(4)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

(5)  Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
     would be 1.35% for Class A shares.

EXAMPLE

An investor  would pay the following  expenses on a $1,000  investment in the 
Fund,  assuming:  (1) payment  of the maximum sales  charge;  (2) 5% annual  
return;  and (3) redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                      <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $90               $118               $196
Class A (without fee waiver)                             $66                 $93               $123               $206
Class B                                                  $70                 $93               $128               $213
Class C                                                  $30                 $63               $108               $233
Class I                                                  $10                 $32               $ 55               $122
</TABLE>

    



                                       18
<PAGE>   22



Assuming no redemption at the end of the period, the dollar amounts in the above
example would be as follows:

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS             5 YEARS           10 YEARS
                                                       ------             -------             -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $90               $118               $196
Class A (without fee waiver)                             $66                 $93               $123               $206
Class B                                                  $20                 $63               $108               $213
Class C                                                  $20                 $63               $108               $233
Class I                                                  $10                 $32               $ 55               $122
</TABLE>
    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       19
<PAGE>   23


   
ONE GROUP(R) LARGE CAP  VALUE FUND    FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>

                                                                      YEAR ENDED JUNE 30,
                                                                      -------------------
CLASS I                             1998        1997         1996         1995       1994         1993        1992      1991(c)
- -------                             ----        ----         ----         ----       ----         ----        ----      -------
<S>                              <C>          <C>          <C>          <C>        <C>          <C>          <C>       <C>    
NET ASSET VALUE, BEGINNING
  OF PERIOD                      $   14.79    $  12.83     $  12.87     $  11.34   $  11.64     $  11.34     $ 10.07   $ 10.00
Investment Activities:
  Net investment income               0.21        0.27         0.31         0.31       0.20         0.18        0.21      0.08
  Net realized and unrealized
    gains (losses) from
    investments                       2.84        3.01         1.20         2.18      (0.01)        0.58        1.34      0.07
Total from Investment
   Activities                         3.05        3.28         1.51         2.49       0.19         0.76        1.55      0.15
Distributions:
  From net investment income         (0.21)      (0.26)       (0.31)       (0.32)     (0.19)       (0.18)      (0.21)    (0.08)
  From net realized gains            (0.93)      (1.06)       (1.24)       (0.64)     (0.30)       (0.28)      (0.07)     --
Total Distributions                  (1.14)      (1.32)       (1.55)       (0.96)     (0.49)       (0.46)      (0.28)    (0.08)
NET ASSET VALUE, END OF PERIOD   $   16.70    $  14.79     $  12.83     $  12.87   $  11.34     $  11.64     $ 11.34   $ 10.07
Total Return                         21.46%      27.10%       12.71%       23.42%     (1.59)%       6.73%      15.53%     4.47%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                 $ 792,649    $686,156     $584,527     $365,376   $169,127     $132,833     $62,075   $36,237
  Ratio of expenses to
    average net assets                0.95%       0.97%        0.97%        1.00%      0.95%        0.86%       0.82%     0.52%(b)
  Ratio of net investment
    income to average net
    assets                            1.34%       1.99%        2.43%        2.74%      1.72%        1.62%       1.91%     2.48%(b)
  Ratio of expenses to
    average net assets*               0.95%       0.97%        0.98%        1.01%      1.02%        1.12%       1.34%     1.26%(b)
  Ratio of net investment
    income to average net
    assets*                           1.34%       1.99%        2.42%        2.73%      1.65%        1.36%       1.39%     1.74%(b)
  Portfolio turnover(a)              47.35%      77.05%      186.84%      203.13%    111.72%       51.75%      55.90%    19.87%
</TABLE>
    

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b) Annualized.
     (c)The Fund commenced operations on March 1, 1991.


                                       20
<PAGE>   24


   
<TABLE>
<CAPTION>

                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS A                                          1998         1997       1996       1995      1994        1993        1992(b)
- -------                                          ----         ----       ----       ----      ----        ----        -------
<S>                                            <C>         <C>        <C>         <C>        <C>         <C>          <C>   
NET ASSET VALUE, BEGINNING OF PERIOD           $ 14.85     $ 12.87    $ 12.89     $ 11.34    $ 11.64     $11.33       $11.42
Investment Activities:
  Net investment income                           0.18        0.23       0.27        0.28       0.17       0.16         0.07
  Net realized and unrealized gains
    (losses) from investments                     2.84        3.04       1.22        2.20      (0.01)      0.59        (0.08)
Total from Investment Activities                  3.02        3.27       1.49        2.48       0.16       0.75        (0.01)
Distributions:
  From net investment income                     (0.17)      (0.23)     (0.27)      (0.27)     (0.16)     (0.16)       (0.08)
  In excess of net investment income             --          --         --          (0.02)     --         --           --
  From net realized gains                        (0.93)      (1.06)     (1.24)      (0.64)     (0.30)     (0.28)       --
Total Distributions                              (1.10)      (1.29)     (1.51)      (0.93)     (0.46)     (0.44)       (0.08)
NET ASSET VALUE, END OF PERIOD                 $ 16.77     $ 14.85    $ 12.87     $ 12.89    $ 11.34     $11.64       $11.33
Total Return (Excludes Sales Charge)             21.14%      26.90%     12.40%      22.64%      1.35%      6.64%       (0.33%)(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)            $15,699     $14,832    $ 9,380     $ 3,481    $   698     $  451       $   12
  Ratio of expenses to average net
    assets                                        1.20%       1.22%      1.22%       1.25%      1.20%      1.10%        1.02%(c)
  Ratio of net investment income to
    average net assets                            1.10%       1.72%      2.18%       2.52%      1.57%      1.41%        2.12%(c)
  Ratio of expenses to average net
    assets*                                       1.30%       1.31%      1.33%       1.37%      1.37%      1.50%        1.22%(c)
  Ratio of net investment income
    to average net assets*                        1.00%       1.63%      2.07%       2.41%      1.40%      1.01%        1.92%(c)
  Portfolio turnover(a)                          47.35%      77.05%    186.84%     203.13%    111.72%     51.75%       55.90%
</TABLE>

    

   

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b) Class A
     Shares commenced offering on February 18, 1992. (c)Annualized.
    



                                       21
<PAGE>   25


   
ONE GROUP(R) LARGE CAP VALUE FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>

                                                                                  YEAR ENDED JUNE 30,
                                                                                  -------------------
CLASS B                                                     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:
  From net investment income                                 (0.09)        (0.15)        (0.18)        (0.17)        (0.05)
  From 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)Class B Shares commenced offering on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.
    

                                       22

<PAGE>   26


   
ONE GROUP(R) MID CAP GROWTH FUND
    

INVESTMENT OBJECTIVE

The Fund seeks growth of capital and secondarily, current income by investing
primarily in equity securities.

INVESTMENT STRATEGY

   
The Fund invests in securities that have the potential to produce above-average
earnings growth per share over a one-to-three year period. Typically, the Fund
acquires shares of established companies with a history of above-average growth,
as well as those companies expected to enter periods of above-average growth.
Not all the securities purchased by the Fund will pay dividends. The Fund also
invests in smaller companies in emerging growth industries. This Fund was
formerly called The One Group Growth Opportunities Fund.
    

PORTFOLIO SECURITIES

The Fund normally invests at least 80% of its total assets in equity securities,
including common stocks and debt securities and preferred stocks that are
convertible to common stock. A portion of the Fund's assets will be held in cash
equivalents. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Also, the stocks of smaller companies may be subject to greater risks
than those of larger companies. Before you invest, please read "More About the
Funds" and "Investment Practices."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.




                                       23
<PAGE>   27

SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B        CLASS C        CLASS I
- -----------------------------------                                  -------        -------        -------        -------
<S>                                                                 <C>            <C>          <C>             <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                          none(2)        5.00%          1.00%          none
Redemption Fees                                                        none            none           none          none
Exchange Fees                                                          none            none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees                                               .74%            .74%           .74%          .74%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses                                                         .26%            .26%           .26%          .26%
Total Fund Operating Expenses
  (after fee waiver)(5)                                               1.25%           2.00%          2.00%         1.00%

</TABLE>
    

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from the redemption amounts paid by wire.

   
(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.
    

(4)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

(5)  Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
     would be 1.35% for Class A shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                  <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $90               $118               $196
Class A (without fee waiver)                             $66                 $93               $123               $206
Class B                                                  $70                 $93               $128               $213
Class C                                                  $30                 $63               $108               $233
Class I                                                  $10                 $32               $ 55               $122
</TABLE>
    




                                       24
<PAGE>   28



Assuming no redemption at the end of the period, the dollar amounts in the above
example would be as follows:

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS            5 YEARS            10 YEARS
                                                       ------             -------            -------            --------
<S>                                                      <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $90               $118               $196
Class A (without fee waiver)                             $66                 $93               $123               $206
Class B                                                  $20                 $63               $108               $213
Class C                                                  $20                 $63               $108               $233
Class I                                                  $10                 $32               $ 55               $122

</TABLE>
    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       25
<PAGE>   29


   
ONE GROUP(R) MID CAP GROWTH FUND    FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance over the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>

                                                                                      YEAR ENDED JUNE 30,
                                                                                      -------------------
CLASS I                            1998          1997          1996        1995        1994         1993      
- -------                            ----          ----          ----        ----        ----         ----      
<S>                            <C>          <C>         <C>          <C>          <C>          <C>            

NET ASSET VALUE, BEGINNING
  OF PERIOD                       $  19.46     $  18.81    $  18.40     $  15.96     $  16.96     $  14.54    
Investment Activities:
  Net investment income              (0.07)        0.25        0.20         0.06         0.07         0.06    
  Net realized and unrealized
    gains (losses) from
    investments                       5.70         3.59        3.83         2.98        (0.05)        2.99    
Total from Investment Activities      5.63         3.84        4.03         3.04         0.02         3.05    
Distributions:
  From net investment income         --           (0.25)      (0.20)       (0.06)       (0.07)       (0.06)   
  In excess of net investment        --           (0.02)      --           --           --           --       
  From net realized gains            (2.58)       (2.92)      (3.42)       (0.54)       (0.95)       (0.57)   
Total Distributions                  (2.58)       (3.19)      (3.62)       (0.60)       (1.02)       (0.63)   
NET ASSET VALUE, END OF PERIOD    $  22.51     $  19.46    $  18.81     $  18.40     $  15.96     $  16.96    
Total Return                         31.11%       22.75%      24.63%       19.75%       (0.16)%      21.36%   
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                  $868,901     $623,911    $532,525     $413,518     $389,567     $232,898    
  Ratio of expenses to
    average net assets                1.00%        0.99%       1.00%        0.98%        0.98%        0.89%   
  Ratio of net investment
    income to average net
    assets                           (0.36)%       1.32%       1.15%        0.38%        0.42%        0.41%   
  Ratio of expenses to
    average net assets*               1.00%        0.99%       1.01%        0.98%        1.03%        1.11%   
  Ratio of net investment
    income to average net
    assets*                          (0.36)%       1.32%       1.14%        0.38%        0.37%        0.19%   
  Portfolio turnover(a)             158.43%      301.35%     435.30%      132.63%       70.67%       64.64%   

                                  
                                  
Class I                               1992        1991        1990       1989(b)
- -------                               ----        ----        ----       -------
<S>                               <C>          <C>        <C>         <C>    

NET ASSET VALUE, BEGINNING
  OF PERIOD                         $  12.92     $ 12.14    $ 10.71     $ 10.00
Investment Activities:
  Net investment income                 0.09        0.21       0.19        0.11
  Net realized and unrealized
    gains (losses) from
    investments                         1.87        0.92       1.97        0.71
Total from Investment Activities        1.96        1.13       2.16        0.82
Distributions:
  From net investment income           (0.08)      (0.21)     (0.19)      (0.11)
  In excess of net investment          --          --         --          --
  From net realized gains              (0.26)      (0.14)     (0.54)      --
Total Distributions                    (0.34)      (0.35)     (0.73)      (0.11)
NET ASSET VALUE, END OF PERIOD      $  14.54     $ 12.92    $ 12.14     $ 10.71
Total Return                           15.15%       9.85%     20.83%      24.86%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                    $131,533     $53,831    $31,804     $22,753
  Ratio of expenses to
    average net assets                  0.75%       0.45%      0.41%       0.38%(c)
  Ratio of net investment
    income to average net
    assets                              1.23%       1.75%      1.65%       3.20%(c)
  Ratio of expenses to
    average net assets*                 0.51%       1.19%      1.15%       1.12%(c)
  Ratio of net investment
    income to average net
    assets*                             0.03%       1.01%      0.91%       2.46%(c)
  Portfolio turnover(a)                42.77%      68.83%     92.55%      68.51%

</TABLE>
    



*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b)The Fund
     commenced operations on March 2, 1989; at that time, the Fund did not offer
     multiple classes of shares. Subsequently all shares of the Fund were
     redesignated as Class I shares. (c)Annualized.



                                       26
<PAGE>   30


   
<TABLE>
<CAPTION>

                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS A                                      1998           1997       1996        1995      1994       1993      1992(c)
- -------                                      ----           ----       ----        ----      ----       ----      -------
<S>                                      <C>            <C>        <C>         <C>       <C>        <C>        <C>   
NET ASSET VALUE, BEGINNING OF PERIOD        $19.37         $18.76     $18.36      $ 15.93   $16.96     $14.54     $16.53
Investment Activities:
  Net investment income                      (0.08)          0.21       0.17         0.02     0.04       0.03       0.01
  Net realized and unrealized gains
    (losses) from investments                 5.65           3.58       3.80         2.98    (0.08)      3.00      (1.99)
Total from Investment Activities              5.57           3.79       3.97         3.00    (0.04)      3.03      (1.98)
Distributions:
  From net investment income                   --           (0.24)     (0.15)       (0.01)   (0.03)     (0.04)     (0.01)
  In excess of net investment income           --           (0.02)       --         (0.02)   (0.01)       --         --
  From net realized gains                    (2.58)         (2.92)     (3.42)       (0.54)   (0.95)     (0.57)       --
Total Distributions                          (2.58)         (3.18)     (3.57)       (0.57)   (0.99)     (0.61)     (0.01)
NET ASSET VALUE, END OF PERIOD              $22.36         $19.37     $18.76      $ 18.36   $15.93     $16.96     $14.54
Total Return (Excludes Sales Charge)         30.95%         22.52%     24.32%       19.50%   (0.52)%    21.70%    (34.00)%(a)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)        $95,647        $43,370    $28,052      $11,178   $8,097     $5,757        $84
  Ratio of expenses to average net
    assets                                    1.25%          1.25%      1.25%        1.23%    1.22%      1.11%      1.31%(a)
Ratio of net investment income to
    average net assets                       (0.60)%         0.92%      0.90%        0.12%    0.27%      0.25%      0.12%(a)
  Ratio of expenses to average net
    assets*                                   1.35%          1.34%      1.36%        1.33%    1.38%      1.48%      1.50%(a)
  Ratio of net investment income
    (loss) to average net assets*            (0.70)%         0.83%      0.79%        0.02%    0.11%     (0.12)%    (0.07)%(a)
  Portfolio turnover(b)                     158.43%        301.35%    435.30%      132.63%   70.67%     64.64%     42.77%
</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)Annualized. (b)Portfolio turnover is calculated on the basis of the Fund
     as a whole without distinguishing among the classes of shares issued.
     (c)Class A Shares commenced offering on February 18, 1992.



                                       27
<PAGE>   31


   
ONE GROUP(R) MID CAP GROWTH FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>
                                                                       YEAR ENDED JUNE 30,
                                                                       -------------------
CLASS B                                                    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:
  From net investment income                                 --            (0.22)        (0.07)        --            (0.01)
  In excess of net investment income                         --            (0.02)        --            --            --
  From 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 (loss)
    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 (loss)
    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)Class B Shares commenced offering on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.


<TABLE>
<CAPTION>

                                                                                                            NOVEMBER 4,
                                                                                                              1997 TO
                                                                                                             JUNE 30,
CLASS C                                                                                                       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.


                                       28
<PAGE>   32


   
ONE GROUP(R) INTERNATIONAL EQUITY INDEX FUND
    

INVESTMENT OBJECTIVE

The Fund seeks to provide investment results that correspond to the aggregate
price and dividend performance of the securities in the MSCI EAFE GDP Index.*

INVESTMENT STRATEGY

The Fund attempts to track the capital performance and dividend income of the
Index by investing in a representative portion of the stocks which match as
closely as possible the characteristics of the stocks which comprise the Index.
The Fund also will invest in stock index futures. The Fund will attempt to
achieve a correlation between the performance of its portfolio and that of the
MSCI EAFE GDP Index of at least 0.90, without taking into account expenses.
Perfect correlation would be 1.00.

PORTFOLIO SECURITIES

The Fund normally invests at least 65% of its total assets in foreign equity
securities, consisting of common stocks (including American Depository Receipts)
and preferred stocks, securities convertible to common stock (provided they are
traded on an exchange or over-the-counter), warrants and receipts. No more than
10% of the Fund's assets will be held in cash or cash equivalents. The Fund may
invest up to 10% of its net assets in securities of emerging international
markets such as Mexico, Chile and Brazil, either directly through local
exchanges, through publicly traded closed-end country funds, or through "passive
foreign investment companies." A substantial portion of the Fund's assets will
be denominated in foreign currencies. For a list of all the securities in which
the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Because the Fund's investments are tied to an index, fluctuations in the
index will affect the value of your investment in the Fund. Also, investments in
foreign securities involve risks different from investments in U.S. securities.
Before you invest, please read "More About the Funds" and "Investment Risks."

FUND MANAGEMENT

Independence  International  Associates,  Inc. ("Independence  International") 
serves as sub-advisor to the Fund.  Independence  International is an indirect 
subsidiary of John Hancock Mutual Life Insurance Company.

   
*    Gross Domestic Product Weighted Morgan Stanley Capital International
     Europe, Australasia and Far East Index. MSCI EAFE GDP Index is a registered
     service mark of Morgan Stanley Capital International, which does not
     sponsor and is in no way affiliated with the Fund.
    



                                       29
<PAGE>   33


SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                 <C>           <C>             <C>            <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                         none(2)         5.00%          1.00%          none
Redemption Fees                                                       none             none           none          none
Exchange Fees                                                         none             none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily
  net assets)
Investment Advisory Fees                                               .55%            .55%           .55%          .55%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses                                                         .40%            .40%           .40%          .40%
Total Fund Operating Expenses
  (after fee waiver)(5)                                               1.20%           1.95%          1.95%          .95%

</TABLE>
    


(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from the redemption amounts paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.

(4)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

(5)  Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
     would be 1.30% for Class A shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS            10 YEARS
                                                       ------             -------            -------            --------
<S>                                                   <C>                 <C>               <C>              <C> 
Class A                                                  $64                 $89               $115               $190
Class A (without fee waiver)                             $65                 $92               $120               $201
Class B                                                  $70                 $91               $125               $208
Class C                                                  $30                 $61               $105               $227
Class I                                                  $10                 $30               $ 53               $117
</TABLE>

    



                                       30
<PAGE>   34

Assuming no redemption at the end of the period, the dollar amounts in the above
example would be as follows:

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS            5 YEARS            10 YEARS
                                                       ------             -------            -------            --------
<S>                                                  <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $115               $190
Class A (without fee waiver)                             $65                 $92               $120               $201
Class B                                                  $20                 $61               $105               $208
Class C                                                  $20                 $61               $105               $227
Class I                                                  $10                 $30               $ 53               $117
</TABLE>

    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       31
<PAGE>   35


   
ONE GROUP(R) INTERNATIONAL EQUITY INDEX FUND    FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>

                                                                            YEAR ENDED JUNE 30,
                                                                            -------------------
CLASS I                                            1998          1997       1996           1995         1994       1993(a)
- -------                                            ----          ----       ----           ----         ----       -------

<S>                                          <C>          <C>          <C>           <C>          <C>           <C>    
NET ASSET VALUE, BEGINNING OF PERIOD            $  16.89     $  15.17     $  13.93      $  13.46     $  11.80      $ 10.00
Investment Activities:
  Net investment income                             0.21         0.15         0.11          0.13         0.11         0.06
  Net realized and unrealized gains
    from investments                                1.32         2.02         1.43          0.46         1.68         1.75
Total from Investment Activities                    1.53         2.17         1.54          0.59         1.79         1.81
Distributions:
  From net investment income                       (0.02)       (0.17)       (0.16)        (0.08)       (0.11)       (0.01)
  In excess of net investment income               --           (0.13)       (0.02)        --           --           --
  From net realized gains                          (0.43)       (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)       (0.01)
NET ASSET VALUE, END OF PERIOD                  $  17.97     $  16.89     $  15.17      $  13.93     $  13.46      $ 11.80
Total Return                                        9.54%       14.64%       11.22%         4.20%       15.44%       26.96%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)             $586,741     $449,949     $347,790      $218,299     $145,640      $35,384
  Ratio of expenses to average net
    assets                                          0.88%        0.86%        0.97%         1.04%        1.02%        1.22%(b)
  Ratio of net investment income to
    average net assets                              1.29%        1.00%        1.04%         1.25%        1.27%        1.37%(b)
  Ratio of expenses to average net
    assets*                                         0.88%        0.86%        1.00%         1.04%        1.02%        2.34%(b)
  Ratio of net investment income to
    average net assets*                             1.29%        1.00%        1.01%         1.25%        1.27%        0.25%(b)
  Portfolio turnover(c)                             9.90%        9.61%        6.28%         4.67%        7.74%        3.10%
</TABLE>
    

   
*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)The Fund commenced offering on October 28, 1992. (b)Annualized.
     (c)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued.
    




                                       32
<PAGE>   36

   
<TABLE>
<CAPTION>
                                                                             YEAR ENDED JUNE 30,
                                                                             -------------------
CLASS A                                           1998          1997         1996          1995         1994       1993(a)
- -------                                           ----          ----         ----          ----         ----       -------
<S>                                              <C>          <C>          <C>            <C>          <C>          <C>   
NET ASSET VALUE, BEGINNING OF PERIOD             $ 16.92      $ 15.16      $ 13.92        $13.49       $11.80       $11.74
Investment Activities:
  Net investment income                             0.19         0.11         0.14          0.12         0.09         0.02
  Net realized and unrealized gains
    from investments                                1.31         2.03         1.40          0.43         1.67         0.04
Total from Investment Activities                    1.50         2.14         1.54          0.55         1.76         0.06
Distributions:
  From net investment income                       --           (0.13)       (0.16)        (0.08)       (0.05)       --
  In excess of net investment income               --           (0.10)       (0.02)        --           --           --
  From net realized gains                          (0.43)       (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       $11.80
Total Return (Excludes Sales Charge)                9.34%       14.31%       11.20%         3.87%       15.18%        2.87%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)              $24,060      $12,562      $10,789        $5,028       $2,395       $  153
  Ratio of expenses to average net
    assets                                          1.13%        1.11%        1.22%         1.28%        1.26%        1.47%(b)
  Ratio of net investment income to
    average net assets                              1.11%        0.73%        0.79%         1.09%        1.15%        2.10%(b)
  Ratio of expenses to average net
    assets*                                         1.23%        1.19%        1.35%         1.38%        1.36%        2.35%(b)
  Ratio of net investment income to
    average net assets*                             1.01%        0.65%        0.66%         0.99%        1.05%        1.22%(b)
  Portfolio turnover(c)                             9.90%        9.61%        6.28%         4.67%        7.74%        3.10%
</TABLE>
    

   
*        During the period,  certain fees were  voluntarily  reduced.  If such 
         voluntary fee reductions  had not occurred,  the ratios would have 
         been as indicated.  (a)Class A commenced  operations on April 23, 
         1993.  (b)Annualized.  (c)Portfolio  turnover is calculated  on the 
         basis of the Fund as a whole without  distinguishing  among the
         classes of shares issued.
    



                                       33
<PAGE>   37


   
ONE GROUP(R) INTERNATIONAL EQUITY INDEX FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>

                                                                           YEAR ENDED JUNE 30,
                                                                           -------------------
CLASS B                                                 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                                  0.08           0.09           0.03        0.03            0.06
  Net realized and unrealized gains
    from investments                                     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:

  From net investment income                            --             (0.08)         (0.15)      (0.07)          --
  In excess of net investment income                    --             (0.07)         (0.02)      --              --
  From net realized gains                               (0.43)         (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)Class B Shares commenced offering on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.

<TABLE>
<CAPTION>

                                                                                                           NOVEMBER 4,
                                                                                                             1997 TO
                                                                                                            JUNE 30,
CLASS C                                                                                                      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.



                                       34
<PAGE>   38


   
ONE GROUP(R) MID CAP VALUE FUND
    

INVESTMENT OBJECTIVE

The Fund seeks capital appreciation with the secondary goal of achieving current
income by investing primarily in equity securities.

INVESTMENT STRATEGY

   
The Fund primarily invests in the equity securities of companies with
below-market average price-to-earnings and price-to-book value ratios and with
market capitalizations of $500 million to $5 billion. The Fund considers the
issuer's soundness and earnings prospects. If Banc One Investment Advisors
determines that a company's fundamentals are declining or that the company's
ability to pay dividends has been impaired, it likely may consider eliminating
the Fund's holding of the company's stock. This Fund was formerly called The One
Group Disciplined Value Fund.
    

PORTFOLIO SECURITIES

The Fund normally invests at least 80% of its total assets in equity securities,
including common stocks, debt securities, and preferred stocks that are
convertible into common stocks. a portion of the Fund's assets will be held in
cash equivalents. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Before you invest, please read "More About the Funds" and "Investment
Practices."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B        CLASS C        CLASS I
- -----------------------------------                                  -------        -------        -------        -------
<S>                                                                 <C>           <C>            <C>             <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                          none(2)        5.00%          1.00%          none
Redemption Fees                                                        none            none           none          none
Exchange Fees                                                          none            none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average
  daily net assets)
Investment Advisory Fees                                               .74%            .74%           .74%          .74%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses                                                         .22%            .22%           .22%          .22%
Total Fund Operating Expenses
  (after fee waiver)(5)                                               1.21%           1.96%          1.96%          .96%
</TABLE>

    

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from the redemption amounts paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.


                                       35
<PAGE>   39

(4)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

   
(5)  Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
     would be 1.31% for Class A shares.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------

<S>                                                    <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $116               $191
Class A (without fee waiver)                             $65                 $92               $121               $202
Class B                                                  $70                 $92               $126               $209
Class C                                                  $30                 $62               $106               $229
Class I                                                  $10                 $31               $ 53               $118
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------

<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $116               $191
Class A (without fee waiver)                             $65                 $92               $121               $202
Class B                                                  $20                 $62               $106               $209
Class C                                                  $20                 $62               $106               $229
Class I                                                  $10                 $31               $ 53               $118
</TABLE>

    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


                                       36
<PAGE>   40


   
ONE GROUP(R) MID CAP VALUE FUND    FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>
                                                                                                YEAR ENDED JUNE 30,     
                                                                                                -------------------
CLASS I                                        1998          1997       1996         1995         1994        1993      
- -------                                        ----          ----       ----         ----         ----        ----      
<S>                                          <C>          <C>         <C>          <C>          <C>          <C>        

NET ASSET VALUE, BEGINNING
  OF PERIOD                                  $  15.65     $  14.69    $  13.20     $  11.90     $  12.76     $  11.49   
Investment Activities:
  Net investment income                          0.14         0.22        0.29         0.28         0.26         0.28   
  Net realized and unrealized
    gains from investments                       3.99         2.57        2.27         1.57         0.29         1.27   
Total from Investment Activities                 4.13         2.79        2.56         1.85         0.55         1.55   
Distributions:
  From net investment income                    (0.14)       (0.22)      (0.29)       (0.27)       (0.26)       (0.28)  
  From 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)       (0.28)  
NET ASSET VALUE, END OF PERIOD               $  16.90     $  15.65    $  14.69     $  13.20     $  11.90     $  12.76   
Total Return                                    28.27%       20.56%      20.10%       16.03%        4.04%       13.58%  
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
    (000)                                    $634,672     $562,302    $522,474     $448,530     $418,238     $211,785   
  Ratio of expenses to average
    net assets                                   0.96%        0.98%       0.99%        1.00%        0.93%        0.89   
  Ratio of net investment
    income to average net assets                 0.85%        1.52%       2.04%        2.21%        2.14%        2.30%  
  Ratio of expenses to average
    net assets*                                  0.96%        0.98%       1.00%        1.10%        0.98%        1.08%  
  Ratio of net investment income
    to average net assets*                       0.85%        1.52%       2.03%        2.11%        2.09%        2.11%  
  Portfolio turnover(a)                        106.41%       92.66%      90.55%      176.66%       56.33%      108.79%  



                                          
                                          
CLASS I                                       1992        1991       1990       1989(b)
- -------                                       ----        ----       ----       -------
<S>                                        <C>          <C>        <C>         <C>    

Net Asset Value, Beginning
  of Period                                $  10.20     $ 10.42    $ 10.85     $ 10.00
Investment Activities:
  Net investment income                        0.34        0.39       0.48        0.14
  Net realized and unrealized
    gains from investments                     1.29       (0.23)     (0.09)       0.85
Total from Investment Activities               1.63        0.16       0.39        0.99
Distributions:
  From net investment income                  (0.34)      (0.38)     (0.48)      (0.14)
  From net realized gains                     --          --         (0.34)      --
Total Distributions                           (0.34)      (0.38)     (0.82)      (0.14)
Net Asset Value, End of Period             $  11.49     $ 10.20    $ 10.42     $ 10.85
Total Return                                  16.24%       1.75%      3.49%      29.90%(c)
Ratios/Supplementary Data:
  Net Assets at end of period
    (000)                                  $155,234     $74,481    $59,992     $45,872
  Ratio of expenses to average
    net assets                                 0.69%       0.41%      0.35%       0.33%(c)
  Ratio of net investment
    income to average net assets               3.17%       3.92%      4.36%       3.95%(c)
  Ratio of expenses to average
    net assets*                                1.23%       1.15%      1.09%       1.07%(c)
  Ratio of net investment income
    to average net assets*                     2.63%       3.18%      3.62%       3.21%(c)
  Portfolio turnover(a)                       25.32%      49.62%     51.14%      14.66%
</TABLE>
    

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b) Class I
     Shares commenced offering on March 2, 1989. (c)Annualized.




                                       37
<PAGE>   41




   
<TABLE>
<CAPTION>

                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS A                                          1998         1997      1996        1995       1994       1993    1992(b)
- -------                                          ----         ----      ----        ----       ----       ----    -------

<S>                                        <C>          <C>        <C>        <C>         <C>        <C>        <C>   
NET ASSET VALUE, BEGINNING OF PERIOD          $  15.68     $ 14.72    $ 13.22    $  11.91    $ 12.75    $ 11.49    $11.45
Investment Activities:
  Net investment income                           0.10        0.19       0.25        0.24       0.24       0.25      0.12
  Net realized and unrealized gains
    from investments                              3.99        2.57       2.28        1.59       0.30       1.26      0.06
Total from Investment Activities                  4.09        2.76       2.53        1.83       0.54       1.51      0.18
Distributions:
  From net investment income                     (0.10)      (0.19)     (0.25)      (0.24)     (0.23)     (0.25)    (0.14)
  From 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)     (0.25)    (0.14)
NET ASSET VALUE, END OF PERIOD                $  16.93     $ 15.68    $ 14.72    $  13.22    $ 11.91    $ 12.75    $11.49
Total Return (Excludes Sales Charge)             27.90%      20.21%     19.80%      15.43%      3.95%     13.27%     1.56%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)           $ 29,443     $23,909    $20,838    $ 13,560    $10,448    $ 3,435    $   35
  Ratio of expenses to average net
    assets                                        1.21%       1.23%      1.24%       1.26%      1.18%      1.12%     1.29%(c)
  Ratio of net investment income to
    average net assets                            0.60%       1.26%      1.79%       1.99%      2.00%      2.06%     2.43%(c)
  Ratio of expenses to average net
    assets*                                       1.31%       1.31%      1.35%       1.36%      1.33%      1.46%     1.49%(c)
  Ratio of net investment income to
    average net assets*                           0.50%       1.18%      1.68%       1.89%      1.85%      1.72%     2.23%(c)
  Portfolio turnover(a)                         106.41%      92.66%     90.55%     176.66%     56.33%    108.79%    25.32%
</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)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b) Class A
     Shares commenced offering on February 18, 1992. (c)Annualized.



                                       38
<PAGE>   42


   
ONE GROUP(R) MID CAP VALUE FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>

                                                                           YEAR ENDED JUNE 30,
                                                                           -------------------
CLASS B                                                      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                                      (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:
  From net investment income                                 (0.01)        (0.07)        (0.14)        (0.15)        (0.06)
  In excess of net investment income                         --            --            --            (0.01)        (0.01)
  From 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)Class B Shares commenced offering on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.



                                       39
<PAGE>   43


   
ONE GROUP(R) EQUITY INDEX FUND
    

INVESTMENT OBJECTIVE

   
The Fund seeks investment results that correspond to the aggregate price and
dividend performance of securities in the Standard & Poor's 500 Composite Stock
Price Index ("S&P 500").*
    

INVESTMENT STRATEGY

   
The Fund invests primarily in stocks included in the S&P 500 and, secondarily in
stock index futures. Banc One Investment Advisors will seek to achieve a
correlation between the performance of the Fund and that of the S&P 500 Index.
To implement this strategy, Banc One Investment Advisors generally selects
stocks in the order of their weightings in the S&P 500 beginning with the
heaviest weighted stocks. The Fund will attempt to achieve a correlation between
the performance of its portfolio and that of the S&P 500 of at least 0.95,
without taking into account expenses. Perfect correlation would be 1.00.
    

PORTFOLIO SECURITIES

   
The percentage of a stock that the Fund holds will be approximately the same
percentage that the stock represents in the S&P 500. In addition, the Fund may
hold up to 10% of its net assets in cash or cash equivalents. For a list of all
the securities in which the Fund may invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in equity securities, which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Because the Fund's investments are tied to an index, fluctuations in the
index will affect the value of your investment in the Fund. Before you invest,
please read "More About the Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

   
*    "S&P 500" is a registered service mark of Standard & Poor's Corporation,
     which does not sponsor and is in no way affiliated with the Fund.
    



                                       40
<PAGE>   44


SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B         CLASS C        CLASS I
- -----------------------------------                                  -------        -------         -------        -------
<S>                                                                <C>            <C>             <C>            <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                          none(2)        5.00%          1.00%          none
Redemption Fees                                                        none            none           none          none
Exchange Fees                                                          none            none           none          none
ANNUAL OPERATING EXPENSES(3)
  Investment Advisory Fees (after fee
    waiver)(4)                                                         .15%            .15%           .15%          .15%
12b-1 Fees (after fee waiver)(5)                                       .25%           1.00%          1.00%          none
Other Expenses (after reimbursements)(6)                               .21%            .21%           .21%          .21%
Total Fund Operating Expenses (after
  fee waivers)(7)                                                      .61%           1.36%          1.36%          .36%

</TABLE>

    

(1)  If you buy or sell shares through an account with a Shareholder Servicing
     Agent, you may be charged separate transaction fees by the Shareholder
     Servicing Agent. In addition, a $10.00 sub-minimum account fee may be
     applicable and a $7.00 charge will be deducted from the redemption amounts
     paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.

(4)  Without the fee waiver, Investment Advisory Fees would be .30% for all
     classes of shares.

(5)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

   
(6)  Without expense reimbursements, Other Expenses would be .28% for all
     classes of shares.

(7)  Without the voluntary reduction of Investment Advisory and 12b-1 fees and
     reimbursement of Other Expenses, Total Operating Expenses would be .93% for
     Class A shares, 1.58% for Class B shares, 1.58% for Class C shares and .58%
     for Class I shares.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS            10 YEARS
                                                       ------             -------            -------            --------

<S>                                                  <C>                 <C>               <C>                <C> 
Class A                                                  $58                 $71               $ 85               $125
Class A (without fee waivers)                            $61                 $81               $101               $161
Class B                                                  $64                 $73               $ 94               $143
Class B (without fee waivers)                            $66                 $80               $106               $170
Class C                                                  $24                 $43               $ 74               $164
Class C (without fee waivers)                            $26                 $50               $ 86               $188
Class I                                                  $ 4                 $12               $ 20               $ 46
Class I (without fee waiver)                             $ 6                 $19               $ 32               $ 73
</TABLE>
    



                                       41
<PAGE>   45



Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                   <C>                 <C>                <C>               <C> 
Class A                                                  $58                 $71                $85               $125
Class A (without fee waivers)                            $61                 $81               $101               $161
Class B                                                  $14                 $43                $74               $143
Class B (without fee waivers)                            $16                 $50                $86               $170
Class C                                                  $14                 $43                $74               $164
Class C (without fee waivers)                            $16                 $50                $86               $188
Class I                                                  $ 4                 $12                $20               $ 46
Class I (without fee waivers)                            $ 6                 $19                $32               $ 73
</TABLE>
    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       42
<PAGE>   46

   
ONE GROUP(R)  EQUITY INDEX FUND    FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>

                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS I                                          1998        1997       1996       1995        1994       1993      1992(b)
- -------                                          ----        ----       ----       ----        ----       ----      -------

<S>                                        <C>         <C>        <C>         <C>        <C>         <C>       <C>    
NET ASSET VALUE, BEGINNING OF PERIOD          $  21.80    $  16.66   $  14.03    $  11.59   $  11.92    $ 10.92   $ 10.00
Investment Activities:
  Net investment income                           0.33        0.35       0.33        0.32       0.29       0.30      0.26
  Net realized and unrealized gains
    (losses) from investments                     5.98        5.27       3.16        2.59      (0.20)      1.13      0.95
Total from Investment Activities                  6.31        5.62       3.49        2.91       0.09       1.43      1.21
Distributions:
  From net investment income                     (0.32)      (0.33)     (0.33)      (0.29)     (0.29)     (0.30)    (0.26)
  In excess of net investment income             --          --         (0.01)      (0.02)     (0.04)     --        --
  From net realized gains                        (0.63)      (0.15)     (0.52)      (0.16)     (0.09)     (0.13)    (0.03)
Total Distributions                              (0.95)      (0.48)     (0.86)      (0.47)     (0.42)     (0.43)    (0.29)
NET ASSET VALUE, END OF PERIOD                $  27.16    $  21.80   $  16.66    $  14.03   $  11.59    $ 11.92   $ 10.92
Total Return                                     29.73%      34.30%     25.47%      25.79%      0.63%     13.04%    12.14%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period(000)            $671,422    $480,819   $321,058    $234,895   $165,370    $96,446   $62,150
  Ratio of expenses to average net
    assets                                        0.35%       0.30%      0.30%       0.33%      0.46%      0.50%     0.73%(c)
  Ratio of net investment income to
    average net assets                            1.37%       1.87%      2.18%       2.57%      2.44%      2.46%     2.43%(c)
  Ratio of expenses to average net
    assets*                                       0.62%       0.61%      0.59%       0.66%      0.59%      0.87%     1.16%(c)
  Ratio of net investment income to
    average net assets*                           1.10%       1.56%      1.89%       2.24%      2.31%      2.09%     2.00%(c)
  Portfolio turnover(a)                           4.32%       5.81%      9.08%       2.71%     11.81%      2.71%    21.90%
</TABLE>
    

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b)The Fund
     commenced operations on July 2, 1991. (c)Annualized.



                                       43
<PAGE>   47


   
<TABLE>
<CAPTION>
                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS A                                         1998         1997       1996        1995       1994       1993    1992(b)
- -------                                         ----         ----       ----        ----       ----       ----    -------
<S>                                       <C>          <C>        <C>          <C>        <C>        <C>       <C>   
NET ASSET VALUE, BEGINNING OF PERIOD          $  21.81     $ 16.67    $ 14.02      $11.59     $11.91     $10.92    $10.94
Investment Activities:
  Net investment income                           0.26        0.29       0.27        0.29       0.28       0.30      0.08
  Net realized and unrealized gains
    (losses) from investments                     5.97        5.28       3.18        2.58      (0.20)      1.10     --
Total from Investment Activities                  6.23        5.57       3.45        2.87       0.08       1.40      0.08
Distributions:
  From net investment income                     (0.26)      (0.28)     (0.27)      (0.28)     (0.27)     (0.28)    (0.10)
  In excess of net investment income             --          --         (0.01)      --         (0.04)     --        --
  From net realized gains                        (0.63)      (0.15)     (0.52)      (0.16)     (0.09)     (0.13)    --
Total Distributions                              (0.89)      (0.43)     (0.80)      (0.44)     (0.40)     (0.41)    (0.10)
NET ASSET VALUE, END OF PERIOD                $  27.15     $ 21.81    $ 16.67      $14.02     $11.59     $11.91    $10.92
Total Return (Excludes Sales Charge)             29.33%      33.94%     25.16%      25.43%      0.56%     12.75%     1.32%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period(000)            $218,518     $98,338    $32,186      $3,003     $1,416     $  512    $    5
  Ratio of expenses to average net
    assets                                        0.60%       0.55%      0.55%       0.56%      0.62%      0.52%     1.09%(c)
  Ratio of net investment income to
    average net assets                            1.11%       1.59%      1.93%       2.38%      2.37%      2.51%     1.97%(c)
  Ratio of expenses to average net
    assets*                                       0.96%       0.95%      0.94%       1.01%      0.94%      0.99%     1.27%(c)
  Ratio of net investment income to
    average net assets*                           0.75%       1.19%      1.54%       1.94%      2.05%      2.04%     1.79%(c)
  Portfolio turnover(a)                           4.32%       5.81%      9.08%       2.71%     11.81%      2.71%    21.90%

</TABLE>
    

*    During the period, certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b)Class A
     Shares commenced offering on February 18, 1992. (c)Annualized.



                                       44
<PAGE>   48


   
ONE GROUP(R) EQUITY INDEX FUND    FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>

                                                                           YEAR ENDED JUNE 30,
                                                                           -------------------
CLASS B                                                     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:
  From net investment income                                 (0.11)        (0.16)        (0.16)        (0.19)        (0.09)
  In excess of net investment income                         --            --            (0.01)        --            --
  From 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) Class B Shares commenced offering on January 14, 1994. (b) Not
     annualized. (c) Annualized. (d) Portfolio turnover is calculated on the
     basis of the Fund as a whole without distinguishing among the classes of
     shares issued.


                                       45
<PAGE>   49


<TABLE>
<CAPTION>

                                                                                                           NOVEMBER 4,
                                                                                                             1997 TO
                                                                                                            JUNE 30,
CLASS C                                                                                                      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.



                                       46
<PAGE>   50


   
ONE GROUP(R) EQUITY INCOME FUND
    

INVESTMENT OBJECTIVE

The Fund seeks current income through regular payment of dividends with the
secondary goal of achieving capital appreciation by investing primarily in
equity securities.

INVESTMENT STRATEGY

   
The Fund attempts to keep its yield above the Standard & Poor's 500 Composite
Price Index ("S&P 500 ")* by investing in common stocks of corporations which
regularly pay dividends, as well as stocks with favorable long-term fundamental
characteristics. Continued payment of dividends cannot be assured. Because
achieving yield is the primary consideration in selecting securities, stocks of
companies that are out of favor in the financial community may also be
purchased. This Fund was formerly called The One Group Income Equity Fund.
    

PORTFOLIO SECURITIES

   
The Fund normally invests at least 65% of its total assets in the equity
securities of companies described above, including common stocks, debt
securities, and preferred stocks that are convertible into common stocks. A
portion of the Fund's assets will be held in cash equivalents. For a list of all
the securities in which the Fund may invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in equity securities, which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Before you invest, please read "More About the Funds" and "Investment
Practices."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

   
*    "S & P 500" is a registered service mark of Standard & Poor's Corporation,
     which does not sponsor and is in no way affiliated with the Fund.
    



                                       47
<PAGE>   51


SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B        CLASS C        CLASS I
- -----------------------------------                                  -------        -------        -------        -------
<S>                                                                 <C>           <C>             <C>            <C>      
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                         none(2)        5.00%          1.00%          none
Redemption Fees                                                        none            none           none          none
Exchange Fees                                                          none            none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily
  net assets)
Investment Advisory Fees                                               .74%            .74%           .74%          .74%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses                                                         .22%            .22%           .22%          .22%
Total Fund Operating Expenses
(after fee waiver)(5)                                                 1.21%           1.96%          1.96%          .96%

</TABLE>
    

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be
     charged separate transaction fees by the Shareholder Servicing Agent. In
     addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
     charge will be deducted from redemption amounts paid by wire.

(2)  Except for purchases of $1 million or more. Please see "Sales Charges."

(3)  Expense information has been restated to reflect current fees.

(4)  Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
     pay more than the equivalent of the maximum front-end sales charges
     permitted by the rules of the National Association of Securities Dealers.
     Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.

   
(5)  Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
     would be 1.31% for Class A shares.
    

EXAMPLE

An investor would pay the following  expenses on a $1,000 investment in the 
Fund,  assuming:  (1) payment of the maximum sales charge;  (2) 5% annual 
return; and (3) redemption at the end of each time period.

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                  <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $116               $191
Class A (without fee waiver)                             $65                 $92               $121               $202
Class B                                                  $70                 $92               $126               $209
Class C                                                  $30                 $62               $106               $219
Class I                                                  $10                 $31               $ 53               $118
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>

                                                       1 YEAR             3 YEARS            5 YEARS           10 YEARS
                                                       ------             -------            -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $116               $191
Class A (without fee waiver)                             $65                 $92               $121               $202
Class B                                                  $20                 $62               $106               $209
Class C                                                  $20                 $62               $106               $229
Class I                                                  $10                 $31               $ 53               $118
</TABLE>
    



                                       48
<PAGE>   52


Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


                                       49
<PAGE>   53
   
ONE GROUP(R) EQUITY INCOME FUND FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
   
<CAPTION>
                                                                              YEAR ENDED JUNE 30,                              
                                                                              -------------------
CLASS I                             1998       1997       1996      1995      1994     1993      1992     1991       1990     1989
- -------                             ----       ----       ----      ----      ----     ----      ----     ----       ----     ----
<S>                               <C>        <C>       <C>        <C>       <C>       <C>       <C>       <C>      <C>      <C>    
NET ASSET VALUE, BEGINNING
  OF PERIOD                       $  21.93   $  17.65  $  15.13   $  13.22  $  13.21  $  12.24  $  11.35  $ 11.06  $ 10.32  $  9.10
Investment Activities:
  Net investment income               0.32       0.36      0.40       0.40      0.39      0.43      0.49     0.54     0.53     0.45
  Net realized and unrealized
    gains from investments            4.36       4.89      3.22       2.28      0.01      0.97      0.90     0.26     0.77     1.22
Total from Investment Activities      4.68       5.25      3.62       2.68      0.40      1.40      1.39     0.80     1.30     1.67
Distributions:

  From net investment income         (0.31)     (0.36)    (0.40)     (0.40)    (0.39)    (0.43)    (0.50)   --       --       --
  From net realized gains            (2.23)     (0.61)    (0.70)     (0.37)    --        --        --       (0.51)   (0.56)   (0.45
Total Distributions                  (2.54)     (0.97)    (1.10)     (0.77)    (0.39)    (0.43)    (0.50)   (0.51)   (0.56)   (0.45
NET ASSET VALUE, END OF PERIOD    $  24.07   $  21.93  $  17.65   $  15.13  $  13.22  $  13.21  $  12.24  $ 11.35  $ 11.06  $ 10.32
Total Return                         23.18%     30.90%    24.53%     21.04%     3.27%    11.56%    12.36%    7.48%   12.79%   18.59%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
    (000)                         $691,878   $649,007  $321,827   $170,919  $198,787  $153,144  $125,050  $73,552  $37,056  $24,591
  Ratio of expenses to average
    net assets                        1.00%      1.00%     0.98%      1.01%     0.98%     0.90%     0.70%    0.42%    0.49%    0.66%
  Ratio of net investment
    income to average net assets      1.39%      1.91%     2.44%      2.85%     3.18%     3.37%     4.12%    4.80%    4.94%    5.35%
  Ratio of expenses to average
    net assets*                       1.00%      1.00%     1.01%      1.01%     1.05%     1.07%     1.23%    1.16%    1.23%    1.42%
  Ratio of net investment income
    to average net assets*            1.39%      1.91%     2.41%      2.85%     3.11%     3.20%     3.59%    4.06%    4.20%    4.59%
  Portfolio turnover(a)              14.64%     28.18%    14.92%      4.03%    22.69%     7.53%     5.99%    9.36%    9.81%    7.14%
</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.
    

                                       50

<PAGE>   54

<TABLE>
<CAPTION>
   
                                                                        YEAR ENDED JUNE 30,
                                                                        -------------------
CLASS A                                          1998      1997         1996        1995      1994       1993     1992(b)
- -------                                          ----      ----         ----        ----      ----       ----     -------
    
<S>                                           <C>          <C>       <C>          <C>        <C>         <C>       <C>   
NET ASSET VALUE, BEGINNING OF PERIOD          $  21.90     $ 17.64   $  15.11     $ 13.20    $ 13.20     $12.23    $12.34
Investment Activities:
  Net investment income                           0.25        0.31       0.38        0.03       0.36       0.40      0.20
  Net realized and unrealized gains
    from investments                              4.37        4.87       3.20        2.29      --          0.98     (0.10)
Total from Investment Activities                  4.62        5.18       3.58        2.32       0.36       1.38      0.10
Distributions:
  From net investment income                     (0.25)      (0.31)     (0.35)      (0.03)     (0.34)     (0.41)    (0.21)
  In excess of net investment income             --          --         --          (0.01)     (0.02)     --        --
  From net realized gains                        (2.23)      (0.61)     (0.70)      (0.37)    --          --        --
Total Distributions                              (2.48)      (0.92)     (1.05)      (0.41)     (0.36)     (0.41)    (0.21)
NET ASSET VALUE, END OF PERIOD                $  24.04     $ 21.90   $  17.64     $ 15.11    $ 13.20     $13.20    $12.23
Total Return (Excludes Sales Charge)             22.91%      30.39%     24.23%      20.79%      2.95%     11.38%     2.16%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)           $117,682     $78,976    $44,284     $13,793    $12,054     $9,513    $  118
  Ratio of expenses to average net
    assets                                        1.25%       1.25%      1.23%       1.26%      1.23%      1.11%     1.29%(c)
  Ratio of net investment income to
    average net assets                            1.15%       1.65%      2.19%       2.61%      3.01%      3.32%     3.97%(c)
  Ratio of expenses to average net
    assets*                                       1.35%       1.34%      1.36%       1.36%      1.40%      1.43%     1.49%(c)
  Ratio of net investment income to
    average net assets*                           1.05%       1.56%      2.06%       2.51%      2.84%      3.00%     3.77%(c)
  Portfolio turnover(a)                          14.64%      28.18%     14.92%       4.03%     22.69%      7.53%     5.99%
</TABLE>

*        During the period, certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued. (b)Class A Shares commenced offering on February 18, 1992.
         (c)Annualized.


                                       51
<PAGE>   55


   
ONE GROUP(R) EQUITY INCOME FUND FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>
                                                                                 YEAR ENDED JUNE 30,
                                                                                 -------------------
CLASS B                                                     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:
  From net investment income                                 (0.26)        (0.18)        (0.23)        (0.25)        (0.11)
  In excess of net investment income                         --            --            --            (0.02)        --
  From 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)Class B Shares commenced offering on January 14, 1994.
         (b)Not Annualized. (c)Annualized. (d)Portfolio turnover is calculated
         on the basis of the Fund as a whole without distinguishing among the
         classes of shares issued.
<TABLE>
<CAPTION>                                                                                 
                                                                             NOVEMBER 4,
                                                                               1997 TO
                                                                               JUNE 30,
CLASS C                                                                        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.


                                       52
<PAGE>   56


   
ONE GROUP(R) DIVERSIFIED EQUITY FUND
    

INVESTMENT OBJECTIVE

The Fund seeks long term capital growth and growth of income with a secondary
objective of providing a moderate level of current income.

INVESTMENT STRATEGY

   
The Fund invests primarily in common stocks of overlooked or undervalued
companies that have the potential for earnings growth over time. The Fund uses a
multi-style approach, meaning that it may invest across varied capitalization
levels targeting both value and growth oriented companies. Because the Fund
seeks returns over the long term, Banc One Investment Advisors will not attempt
to time the market. This Fund was formerly known as The One Group Value Growth
Fund.
    

PORTFOLIO SECURITIES

   
The Fund normally invests at least 65% of its total assets in equity securities
described above. Up to 35% of its total assets may be invested in U.S.
government securities, other investment grade fixed income securities, cash, and
cash equivalents. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
As a result, your investment in the Fund may increase or decrease in value. The
Fund also may invest in fixed income securities. The value of these securities
will change in response to interest rate changes and other factors. This is
especially true to the extent that the Fund invests in debt securities with
speculative characteristics. Before you invest, please read "More About the
Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.



                                       53
<PAGE>   57


SHAREHOLDER EXPENSES
   
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                <C>                                               
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                       none(2)          5.00%          1.00%          none
Redemption Fees                                                        none            none           none          none
Exchange Fees                                                          none            none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees (after fee waiver)(4)                         .73%            .73%           .73%          .73%
12b-1 Fees (after fee waiver)(5)                                       .25%           1.00%          1.00%          none
Other Expenses                                                         .24%            .24%           .24%          .24%
Total Fund Operating Expenses (after
  fee waiver)(6)                                                      1.22%           1.97%          1.97%          .97%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees

   
(4)      Without the fee waiver, Investment Advisory Fees would be .74% for all 
         classes of shares.
    

   
(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares.
    

(6)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be 1.32% for Class A shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $116               $192
Class A (without fee waiver)                             $65                 $92               $121               $203
Class B                                                  $70                 $92               $126               $210
Class C                                                  $30                 $62               $106               $230
Class I                                                  $10                 $31               $ 54               $119
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
   
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                    <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $89               $116               $192
Class A (without fee waiver)                             $65                 $92               $121               $203
Class B                                                  $20                 $62               $106               $210
Class C                                                  $20                 $62               $106               $230
Class I                                                  $10                 $31               $ 54               $119
</TABLE>
    


                                       54
<PAGE>   58

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


                                       55
<PAGE>   59

   
ONE GROUP(R) DIVERSIFIED EQUITY FUND   FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>
                                                                                                            
                                                                                                             
                                                                                                            MARCH 26,
                                                                              YEAR ENDED JUNE 30,            1996 TO 
                                                                              --------------------           JUNE 30,
CLASS I                                                                       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
    from investments                                                           3.36             2.85           0.39
Total from Investment Activities                                               3.44             2.96           0.42
Distributions:
  From net investment income                                                  (0.08)           (0.11)         (0.03)
  From 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 One Group. (b)Represents total return for
Class A Shares from December 1, 1995 through March 25, 1996 plus total return
for Class I 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.
    


                                      56
<PAGE>   60


   
<TABLE>
<CAPTION>
                                                              SEVEN MONTHS
                                       YEAR ENDED                ENDED
                                        JUNE 30,                JUNE 30,                       YEAR ENDED JUNE 30,
                                     ----------------       -----------------       -----------------------------------
CLASS A                              1998        1997       1996(a)      1995       1994      1993        1992     1991
- -------                              ----        ----       -------      ----       ----      ----        ----     ----
<S>                               <C>         <C>        <C>       <C>         <C>        <C>         <C>        <C>    
NET ASSET VALUE, BEGINNING
  OF PERIOD                         $ 11.50     $ 10.39    $ 11.15   $   9.00    $  10.02   $   9.42    $  7.80    $  6.39
Investment Activities:
  Net investment income                0.05        0.09       0.94       0.12        0.13       0.11       0.11       0.12
  Net realized and unrealized
    gains (losses) from
    investments                        3.36        2.83       0.08       2.44       (0.56)      0.83       1.75       1.44
Total from Investment
  Activities                           3.41        2.92       1.02       2.56       (0.43)      0.94       1.86       1.56
Distributions:
  From net investment income          (0.05)      (0.08)     (0.94)     (0.12)      (0.14)     (0.12)     (0.10)     (0.14)
  In excess of net investment
    income                            --          --         (0.01)     --          --         --         --         --
  From net realized gains             (1.36)      (1.73)     (0.83)     (0.29)      (0.45)     (0.22)     (0.14)     (0.01)
Total Distributions                   (1.41)      (1.81)     (1.78)     (0.41)      (0.59)     (0.34)     (0.24)     (0.15)
NET ASSET VALUE, END OF PERIOD      $ 13.50     $ 11.50    $ 10.39   $  11.15    $   9.00   $  10.02   $   9.42    $  7.80
Total Return (Excludes Sales
  Charge)                             31.96%      31.53%     10.40%     29.57%      (4.32)%    10.13%     24.27%     24.97%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
    (000)                           $80,500     $47,306    $35,984   $217,978    $173,198   $171,141   $133,614    $93,400
  Ratio of expenses to
    average net assets                 1.23%       1.23%      0.97%(c)   0.95%       0.96%      0.96%      0.97%      0.95%
  Ratio of net investment
    income to average net

    assets                             0.40%       0.83%      0.85%(c)   1.25%       1.34%      1.21%      1.25%      1.73%
  Ratio of expenses to
    average net assets*                1.33%       1.34%      1.05%(c)   0.95%       0.96%      0.96%      0.97%      1.02%
  Ratio of net investment
    income to average net

    assets*                            0.30%       0.72%      0.77%(c)   1.25%       1.34%      1.21%      1.25%      1.66%
  Portfolio turnover(d)               62.37%     113.17%     65.21%     77.00%      53.00%     66.00%     43.00%     54.00%
</TABLE>
    
   
*        During the period, certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. 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 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.
    


                                      57
<PAGE>   61
   
ONE GROUP(R) DIVERSIFIED EQUITY FUND   FINANCIAL HIGHLIGHTS
    
   
<TABLE>
<CAPTION>
                                                                                
                                                            YEAR ENDED          SEVEN MONTHS                   SEPTEMBER 9,  
                                                             JUNE 30,              ENDED       YEAR ENDED         1994 TO    
                                                         -----------------        JUNE 30,     NOVEMBER 30,     NOVEMBER 30,  
CLASS B                                                  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                                  (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:
  From net investment income                             --           (0.02)         (0.91)         (0.07)          (0.02)
  In excess of net investment income                     --           --             (0.01)         --              --
  From net realized gains                                (1.36)       (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 One Group, the
         Paragon Value Growth Fund became the Value Growth Fund. Financial
         highlights for the periods prior to March 26, 1996 represent the
         Paragon Value Growth Fund. The per share data for the periods prior to
         March 26, 1996 have been restated to reflect the impact of restatement
         of net asset value from $15.21 to $10.00 effective March 26, 1996.
         (b)Class B Shares commenced offering September 9, 1994. (c)Not
         annualized. (d)Annualized. (e)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.
    

                                      58
<PAGE>   62
<TABLE>
<CAPTION>
                                                                             NOVEMBER 4,
                                                                               1997 TO
                                                                              JUNE 30,
CLASS C                                                                        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.

                                      59
<PAGE>   63


   
ONE GROUP(R)  SMALL CAP GROWTH FUND
    

INVESTMENT OBJECTIVE

The Fund seeks long-term capital growth primarily by investing in a portfolio of
equity securities of small capitalization and emerging growth companies.

INVESTMENT STRATEGY

   
The Fund invests primarily in common stocks, debt securities, preferred stocks,
convertible securities, warrants, and other equity securities of small
capitalization companies. Generally, Banc One Investment Advisors selects a
portfolio of companies with a market capitalization equivalent to the median
market capitalization of the Standard & Poor's SmallCap 600 Index 
("S&P SmallCap 600"), although the Fund may occasionally hold securities of
companies with larger capitalizations if doing so contributes to the Fund's
investment objective. This Fund was formerly called One Group Small
Capitalization Fund.
    

PORTFOLIO SECURITIES

The Fund invests at least 65% of its total assets in the securities described in
"Investment Strategy." Up to 35% of its total assets may be invested in U.S.
Government Securities, other investment grade fixed income securities, cash, and
cash equivalents. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
As a result, your investment in the Fund may increase or decrease in value.
Also, smaller companies may be subject to greater business risks than larger
companies. Before you invest, please read "More About the Funds" and "Investment
Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

   
*        "S&P SmallCap 600" is a registered service mark of Standard & Poor's
         Corporation, which does not sponsor and is in no way affiliated with
         the Fund.
    

                                      60
<PAGE>   64
SHAREHOLDER EXPENSES
   
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                 <C>              <C>           <C>            <C>  
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                         none(2)        5.00%          1.00%          none
Redemption Fees                                                          none          none           none          none
Exchange Fees                                                            none          none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees                                               .74%            .74%           .74%          .74%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses                                                         .31%            .31%           .31%          .31%
Total Fund Operating Expenses
  (after fee waiver)(5)                                               1.30%           2.05%          2.05%         1.05%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares.

(5)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be 1.40% for Class A shares.

EXAMPLE

An investor would pay the following  expenses on a $1,000 investment in the
Fund,  assuming:  (1) payment of the maximum sales charge;  (2) 5% annual
return; and (3) redemption at the end of each time period.
   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $92               $120               $201
Class A (without fee waiver)                             $66                 $94               $125               $212
Class B                                                  $71                 $94               $130               $219
Class C                                                  $31                 $64               $110               $238
Class I                                                  $11                 $33               $ 58               $128
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $92               $120               $201
Class A (without fee waiver)                             $66                 $94               $125               $212
Class B                                                  $21                 $64               $110               $219
Class C                                                  $21                 $64               $110               $238
Class I                                                  $11                 $33               $ 58               $128
</TABLE>
    

                                       61

<PAGE>   65


Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED REPRESENTATIONS OF PAST OR FUTURE EXPENSES AND
ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


                                      62
<PAGE>   66


   
ONE GROUP(R) SMALL CAP GROWTH FUND   FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

   
<TABLE>
<CAPTION>
                                                                                                               
                                                                                                               MARCH 26,
                                                                             YEAR ENDED JUNE 30,               1996 TO
                                                                             -------------------               JUNE 30,          
CLASS I                                                                     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 from
    investments                                                                2.44             1.31                 0.78
Total from Investment Activities                                               2.44             1.29                 0.78
Distributions:
  From 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 (loss)
    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 (loss)
    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 One
         Group. (b)Represents total return for Class A Shares from December 1,
         1995 through March 25, 1996 plus total return for Class I 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.
    

                                      63
<PAGE>   67
   
<TABLE>
<CAPTION>
                                                                                                              FIVE
                                                    SEVEN MONTHS                                             MONTHS
                                   YEAR ENDED          ENDED                                                 ENDED
                                    JUNE 30,          JUNE 30,             YEAR ENDED JUNE 30,             NOVEMBER 30,
                                   ----------                              -------------------
CLASS A                               1998       1997       1996(a)      1995     1994         1993      1992       1991(e)
- -------                               ----       ----       -------      ----     ----         ----      ----       -------
<S>                              <C>         <C>        <C>        <C>         <C>        <C>        <C>        <C>    
NET ASSET VALUE, BEGINNING
  OF PERIOD                         $ 10.94     $ 10.73    $ 11.50    $  9.36     $ 10.11    $  9.48    $  7.38    $  6.37
Investment Activities:
  Net investment income (loss)        (0.03)      (0.04)     (0.07)     (0.04)      (0.04)     (0.02)      0.01       0.01
  Net realized and unrealized
    gains (losses) from
    investments                        2.44        1.35       1.40       2.35       (0.63)      0.88       2.10       1.01
Total from Investment
  Activities                           2.41        1.31       1.33       2.31       (0.67)      0.86       2.11       1.02
Distributions:
  From net investment income          --          --         --         --          --         (0.01)     (0.01)     (0.01)
  From 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)     (0.01)     (0.01)
NET ASSET VALUE, END OF PERIOD      $ 12.02     $ 10.94    $ 10.73    $ 11.50     $  9.36    $ 10.11    $  9.48    $  7.38
Total Return (Excludes Sales
  Charge)                             23.28%      13.52%     12.85%(b)  25.07%      (6.66)%     9.10%     28.59%     16.12%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
    (000)                           $21,634     $17,299    $18,356    $95,467     $77,540    $74,982    $55,719    $34,546
  Ratio of expenses to
    average net assets                 1.31%       1.27%      1.05%(c)   1.03%       1.00%      1.01%      1.00%      1.05%(c)
  Ratio of net investment
    income (loss) to average
    net assets                        (0.31)%     (0.41)%    (0.33)%(c) (0.36)%     (0.38)%    (0.21)%     0.15%      0.31%(c)
  Ratio of expenses to
    average net assets*                1.44%       1.45%      1.07%(c)   1.03%       1.00%      1.01%      1.00%      1.05%(c)
  Ratio of net investment
    income (loss) to average
    net assets*                       (0.44)%     (0.59)%    (0.35)%(c) (0.36)%     (0.38)%    (0.21)%     0.15%      0.31%(c)
  Portfolio turnover(d)               83.77%      92.01%     59.57%     65.00%      51.00%     59.00%     42.00%     12.00%
</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 One Group, the
         Paragon Gulf South Growth Fund became the Gulf South Growth Fund.
         Financial highlights for the periods prior to March 26, 1996 represent
         the Paragon Gulf South Growth Fund. The per share data for the periods
         prior to March 26, 1996 have been restated to reflect the impact of
         restatement of net asset value from $15.70 to $10.00 effective March
         26, 1996. (b)Not annualized. (c)Annualized. (d)Portfolio turnover is
         calculated on the basis of the Fund as a whole without distinguishing
         among the classes of shares issued. (e)Period from commencement of
         operations.
    

                                      64
<PAGE>   68


   
ONE GROUP(R) SMALL CAP GROWTH FUND   FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>
                                                                                SEVEN MONTHS                   SEPTEMBER 12,
                                                        YEAR ENDED                  ENDED       YEAR ENDED        1994 TO
                                                         JUNE 30,                 JUNE 30,      NOVEMBER 30,    NOVEMBER 30,
                                                        ----------
CLASS B                                                   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 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:
  From 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 (loss)
    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 (loss)
    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 One Group, the
         Paragon Gulf South Growth Fund became the Gulf South Growth Fund.
         Financial highlights for the periods prior to March 26, 1996 represent
         the Paragon Gulf South Growth Fund. The per share data for the periods
         prior to March 26, 1996 have been restated to reflect the impact of
         restatement of net asset value from $15.48 to $10.00 effective March
         26, 1996. (b)Class B Shares commenced offering September 12,
         1994.(c)Not annualized.(d)Annualized.(e)Portfolio turnover is
         calculated on the basis of the Fund as a whole without distinguishing
         among the classes of shares issued.
    

                                      65
<PAGE>   69
<TABLE>
<CAPTION>
                                                                             NOVEMBER 4,
                                                                               1997 TO
                                                                              JUNE 30,
CLASS C                                                                        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.

                                      66
<PAGE>   70


   
ONE GROUP(R) SMALL CAP VALUE FUND

INVESTMENT OBJECTIVE

The Fund seeks long-term capital growth by investing primarily in equity
securities of companies with small capitalizations.

INVESTMENT STRATEGY

The Fund invests primarily in equity securities of small domestic issuers with
market capitalizations of $100 million to $2 billion. In reviewing investment
opportunities, Banc One Investment Advisors looks for high quality management, a
dominant position in a major product line, significant equity ownership
positions by management, a sound financial position, and a relatively high rate
of return on invested capital. The Fund also will invest in companies that
demonstrate a potential for earnings growth due to management changes, new
products, or a changing marketplace.

PORTFOLIO SECURITIES

The Fund normally invests at least 65% of its total assets in common and
preferred stocks, rights, warrants, convertible securities, and other equity
securities of companies described above. While the Fund invests primarily in
securities of U.S. companies, up to 25% of its total assets may be invested in
equity securities of foreign issuers. Up to 20% of the Fund's total assets may
be invested in U.S. government securities, other investment grade fixed income
securities, cash and cash equivalents. For a list of all the securities in which
the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
As a result, your investment in the Fund may increase or decrease in value.
Also, smaller companies may be subject to greater business risks than larger
companies. Before you invest, please read "More About the Funds" and "Investment
Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.
    

                                      67
<PAGE>   71
   
SHAREHOLDER EXPENSES
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                 <C>              <C>           <C>           <C>              
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                         none(2)        5.00%          1.00%          none
Redemption Fees                                                          none          none           none          none
Exchange Fees                                                            none          none           none          none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily net
  assets)
Investment Advisory Fees (after fee waiver)(3)                         .70%            .70%           .70%          .70%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses (after reimbursements) (5)                              .21%            .21%           .21%          .21%
Total Fund Operating Expenses
  (after fee waiver)(6)                                               1.16%           1.91%          1.91%          .91%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .74% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares.

(5)      Without expense reimbursements, Other Expenses would be .22% for all
         classes of shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees
         and reimbursement of Other Expenses, Total Operating Expenses would be
         1.31% for Class A shares, 1.96% for Class B shares, 1.96% for Class C
         shares and .96% for Class I shares.


EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $87               $113               $186
Class A (without fee waiver)                             $65                 $92               $121               $202
Class B                                                  $69                 $90               $123               $204
Class B (without fee waiver)                             $70                 $92               $126               $212
Class C                                                  $29                 $60               $103               $223
Class C (without fee waiver)                             $30                 $62               $106               $229
Class I                                                  $ 9                 $29               $ 50               $112
Class I (without fee waiver)                             $10                 $31               $ 53               $118
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

                                      68
<PAGE>   72
   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $64                 $87               $113               $186
Class A (without fee waiver)                             $65                 $92               $121               $202
Class B                                                  $19                 $60               $103               $204
Class B (without fee waiver)                             $20                 $62               $106               $212
Class C                                                  $19                 $60               $103               $223
Class C (without fee waiver)                             $20                 $62               $106               $229
Class I                                                  $ 9                 $29               $ 50               $112
Class I (without fee waiver)                             $10                 $31               $ 53               $118
</TABLE>
    


Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED REPRESENTATIONS OF PAST OR FUTURE EXPENSES AND
ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP SMALL CAP VALUE FUND FINANCIAL HIGHLIGHTS

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by _____________________, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    

                                      69
<PAGE>   73


ONE GROUP(R) DIVERSIFIED MID CAP FUND

INVESTMENT OBJECTIVE

The Fund seeks long-term capital growth by investing primarily in equity
securities of companies with intermediate capitalizations.

INVESTMENT STRATEGY

   
The Fund invests primarily in equity securities of companies with market
capitalizations of $500 million to $5 billion. Banc One Investment Advisors
believes that there are many companies of this size with strong potential,
stable market share, and an ability to quickly respond to new business
opportunities, all of which increase their likelihood of obtaining superior
levels of profitability and investment returns.
    

PORTFOLIO SECURITIES

   
The Fund normally invests at least 65% of its total assets in common and
preferred stocks, rights, warrants, convertible securities, and other equity
securities. While the Fund invests primarily in securities of U.S. companies, up
to 25% of its total assets may be invested in equity securities of foreign
issuers. Up to 20% of the Fund's total assets may be invested in U.S. government
securities, other investment grade fixed income securities, cash and cash
equivalents. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
As a result, your investment in the Fund may increase or decrease in value.
Before you invest, please read "More About the Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

                                      70
<PAGE>   74


   
SHAREHOLDER EXPENSES
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                 <C>             <C>            <C>            <C> 
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                         none(2)        5.00%          1.00%          none
Redemption Fees                                                          none          none           none          none
Exchange Fees                                                            none          none           none          none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily net
  assets)
Investment Advisory Fees(after fee waivers)(3)                         .60%            .60%           .60%          .60%
12b-1 Fees (after reimbursements)(4)                                   .25%           1.00%          1.00%          none
Other Expenses(5)                                                      .26%            .26%           .26%          .26%
Total Fund Operating Expenses
  (after fee waiver)(6)                                               1.11%           1.86%          1.86%          .86%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .74% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares.

(5)      With expense reimbursement, Other Expenses would be .27% for all
         classes of shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees
         and reimbursements of Other Expenses, Total Operating Expenses would be
         1.36% for Class A shares, 2.01% for Class B shares, 2.01% for Class C
         shares and 1.01% for Class I shares.


EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                   <C>                 <C>               <C>                <C> 
Class A                                                  $63                 $86               $110               $181
Class A (without fee waiver)                             $66                 $93               $123               $207
Class B                                                  $69                 $88               $121               $198
Class B (without fee waiver)                             $70                 $93               $128               $217
Class C                                                  $29                 $58               $101               $218
Class C (without fee waiver)                             $30                 $63               $108               $234
Class I                                                  $ 9                 $27               $ 48               $106
Class I (without fee waiver)                             $10                 $32               $ 56               $124
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

                                      71
<PAGE>   75


<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                    <C>                 <C>               <C>                <C> 
Class A                                                  $63                 $86               $110               $181
Class A (without fee waiver)                             $66                 $93               $123               $207
Class B                                                  $19                 $58               $101               $198
Class B (without fee waiver)                             $20                 $63               $108               $217
Class C                                                  $19                 $58               $101               $218
Class C (without fee waiver)                             $20                 $63               $108               $234
Class I                                                  $ 9                 $27               $ 48               $106
Class I (without fee waiver)                             $10                 $32               $ 56               $124
</TABLE>


Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED REPRESENTATIONS OF PAST OR FUTURE EXPENSES AND
ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

One Group Diversified Mid Cap Fund Financial Highlights

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by __________________ whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    

                                      72
<PAGE>   76


   
ONE GROUP(R) DIVERSIFIED INTERNATIONAL FUND

INVESTMENT OBJECTIVE

The Fund seeks long-term capital growth by investing primarily in equity
securities of foreign issuers.

INVESTMENT STRATEGY

The Fund invests primarily in the securities of companies located in Europe,
Asia and Latin America. The Fund also will invest in other regions and countries
that present attractive investment opportunities, including developing
countries. In selecting a country for investment, Banc One Investment Advisors
analyzes the global economic and political situation, as well as the securities
markets of selected countries. In selecting individual securities, Banc One
Investment Advisors attempts to track the performance of the individual
country's stock market index. Banc One Investment Advisors uses its best
judgment, experience and certain quantitative techniques to determine the
countries in which the Fund will invest, as well as the amount invested in each
country. Fund assets will be invested in at least three countries.

PORTFOLIO SECURITIES

The Fund normally invests at least 65% of its total assets in foreign equity
securities, consisting of common stock (including American Depository Receipts),
preferred stocks, rights, warrants, convertible securities, foreign currencies
and options on foreign currency, and other equity securities. Up to 20% of the
Fund's total assets may be invested in U.S. government securities, other
investment grade fixed income securities, cash and cash equivalents. For a list
of all the securities in which the Fund may invest, please read "Investment
Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Because the Fund's investments are tied to an index, fluctuations in the
index will affect the value of your investment in the Fund. Also, investments in
foreign securities involve risks different from investments in U.S. securities.
Because the Fund may invest over 25% of its total assets in a single country,
political and economic developments in that country will have a greater impact
on the performance of the Fund than would be the case if the Fund were more
widely diversified. Before you invest, please read "More About the Funds" and
"Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.
    

                                      73
<PAGE>   77



SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                 <C>             <C>            <C>           <C>  
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                         none(2)        5.00%          1.00%          none
Redemption Fees                                                          none          none           none          none
Exchange Fees                                                            none          none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees                                               .80%            .80%           .80%          .80%
12b-1 Fees (after fee waiver)(4)                                       .25%           1.00%          1.00%          none
Other Expenses (after reimbursements)(5)                               .22%            .22%           .22%          .22%
Total Fund Operating Expenses
  (after fee waiver)(6)                                               1.27%           2.02%          2.02%         1.02%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares.

(5)      Without expense reimbursements, Other Expenses would be .23% for all
         classes of shares.

(6)      Without the voluntary reduction of 12b-1 fees and reimbursement of
         Other Expenses, Total Operating Expenses would be 1.38% for Class A
         shares, 2.03% for Class B shares, 2.03% for Class C shares and 1.03%
         for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                    <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $91               $119               $198
Class A (without fee waiver)                             $66                 $94               $124               $210
Class B                                                  $71                 $93               $129               $216
Class B (without fee waiver)                             $71                 $94               $129               $219
Class C                                                  $31                 $63               $109               $235
Class C (without fee waiver)                             $31                 $64               $109               $236
Class I                                                  $10                 $32               $ 56               $125
Class I (without fee waiver)                             $11                 $33               $ 57               $126
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

                                      74
<PAGE>   78


<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS          5 YEARS           10 YEARS
                                                       ------             -------          -------           --------
<S>                                                    <C>                 <C>               <C>                <C> 
Class A                                                  $65                 $91               $119               $198
Class A (without fee waiver)                             $66                 $94               $124               $210
Class B                                                  $21                 $63               $109               $216
Class B (without fee waiver)                             $21                 $64               $109               $219
Class C                                                  $21                 $63               $109               $235
Class C (without fee waiver)                             $21                 $64               $109               $236
Class I                                                  $10                 $32              $  56               $125
Class I (without fee waiver)                             $11                 $33              $  57               $126
</TABLE>


Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED REPRESENTATIONS OF PAST OR FUTURE EXPENSES AND
ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

One Group Diversified International Fund Financial Highlights

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by _________________, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    


                                      75
<PAGE>   79


ONE GROUP(R) MARKET EXPANSION INDEX FUND

INVESTMENT OBJECTIVE

   
The Fund seeks to provide a return which substantially duplicates the price and
yield performance of domestically traded common stocks in the small and mid
capitalization equity markets, as represented by a market capitalization
weighted combination of the Standard & Poor's SmallCap 600 Index ("S&P SmallCap
600") and the Standard & Poor's MidCap 400 Index ("S&P MidCap 400").*

INVESTMENT STRATEGY

The Fund invests in a representative sampling of stocks of medium-sized and
small U.S. companies that are included in the S&P SmallCap 600 and S&P MidCap
400 and which trade on the New York and American Stock Exchanges, as well as
over-the-counter stocks that are part of the National Market System. The Fund
uses a sampling methodology to determine which stocks to purchase or sell in
order to closely replicate the performance of the combined indices. Small
capitalization companies are then added to the Fund in equal weightings
according to an analysis of the industry diversification of the combined
indices. The Fund seeks to achieve a correlation between its portfolio and that
of the indices of at least 0.95, without taking into account expenses. Perfect
correlation would be 1.00.
    

PORTFOLIO SECURITIES

   
The Fund invests in a representative sampling of stocks which are included in
the S&P SmallCap and S&P MidCap Indices. The Fund also may invest up to 25% of
its total assets in the securities of foreign issuers through Depository
Receipts, and may hold up to 5% of its total assets in cash and cash
equivalents. In addition, the Fund may invest up to 5% of its total assets in
futures contracts and related options.
    
   
RISK CONSIDERATIONS

The Fund invests in equity securities which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Because the Fund's investments are tied to an index, fluctuations in the
index will affect the value of your investment in the Fund. Also, investments in
foreign securities involve risks different from investments in U.S. securities.
Before you invest, please read "More About the Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.

*"S&P SmallCap 600" and "S&P MidCap 400" are registered service marks of
Standard & Poor's Corporation, which does not sponsor and is in no way
affiliated with the Fund.
    

                                      76
<PAGE>   80

SHAREHOLDER EXPENSES
   
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A        CLASS B       CLASS C        CLASS I
- -----------------------------------                                  -------        -------       -------        -------
<S>                                                                <C>            <C>            <C>            <C> 
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 5.25%            none           none          none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as applicable)                         none(2)        5.00%          1.00%          none
Redemption Fees                                                          none          none           none          none
Exchange Fees                                                            none          none           none          none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver)(4)                         .15%            .15%           .15%          .15%
12b-1 Fees (after fee waiver)(5)                                       .25%           1.00%          1.00%          none
Other Expenses (after reimbursements)(6)                               .42%            .42%           .42%          .42%
Total Fund Operating Expenses
  (after fee waiver)(7)                                                .82%           1.57%          1.57%          .57%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .35% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares.

(6)      Without expense reimbursements, Other Expenses would be .52% for all
         classes of shares.

   
(7)      Without the voluntary reduction of investment advisory and 12b-1 fees
         and reimbursement of other expenses, total operating expenses would be
         1.22% for Class A shares, 1.87% for Class B shares, 1.87% for Class C
         shares and .87% for class i shares.
    

EXAMPLE

An investor would pay the following  expenses on a $1,000 investment in the
Fund, assuming: (1) payment of the maximum sales charge; (2) 5% annual
return; and (3) redemption at the end of each time period.

   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS
                                                       ------             -------
<S>                                                    <C>                 <C>
Class A                                                  $60                 $77
Class A (without fee waiver)                             $64                 $89
Class B                                                  $66                 $80
Class B (without fee waiver)                             $69                 $89
Class C                                                  $26                 $50
Class C (without fee waiver)                             $29                 $59
Class I                                                  $ 6                 $18
Class I (without fee waiver)                             $ 9                 $28
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:


                                      77
<PAGE>   81



   
<TABLE>
<CAPTION>
                                                       1 YEAR             3 YEARS
                                                       ------             -------
<S>                                                    <C>                 <C>
Class A                                                  $60                 $77
Class A (without fee waiver)                             $64                 $89
Class B                                                  $16                 $50
Class B (without fee waiver)                             $19                 $59
Class C                                                  $16                 $50
Class C (without fee waiver)                             $19                 $59
Class I                                                  $ 6                 $18
Class I (without fee waiver)                             $ 9                 $28
</TABLE>


Class B shares automatically convert to Class A shares after eight (8) years.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. These
examples should not be considered representations of past or future expenses and
actual expenses may be greater or less than those shown.

One Group Market Index Expansion Fund Financial Highlights

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by __________________, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    


                                      78
<PAGE>   82

MORE ABOUT THE FUNDS

PORTFOLIO QUALITY

The Funds only purchase securities that meet certain rating criteria.

   
- -        If the Funds invest in municipal bonds, the bonds must be rated as
         investment grade.

- -        Other municipal securities, such as tax-exempt commercial paper, notes
         and variable rate demand obligations, must be rated in one of the two
         highest investment grade categories at the time of investment. 

- -        Corporate bonds generally will be rated in one of the three highest
         investment grade categories.

- -        Banc One Investment Advisors reserves the right to invest in corporate
         bonds which present attractive opportunities and are rated in the
         lowest investment grade category. These corporate bonds may be riskier
         than higher rated bonds.

If the securities are unrated, Banc One Investment Advisors must determine that
they are of comparable quality to rated securities. Banc One Investment Advisors
will look at a security's rating at the time of investment. For more information
about ratings, please see "Description of Ratings" in the Appendix.
    

ILLIQUID INVESTMENTS

   
Each Fund may invest up to 15% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by the One Group Board of Trustees in determining whether an
investment is illiquid.
    

SPECIAL RISK CONSIDERATIONS

   
DERIVATIVES: Some of the Funds may invest in securities that are considered to
be "derivatives." Derivatives are securities or contracts that derive their
value from the performance of underlying assets or securities. These include:

- -        options, futures contracts, and options on futures contracts

- -        warrants

- -        mortgage-backed securities, including collateralized mortgage
         obligations and Real Estate Mortgage Investment Conduits (CMOs and
         REMICs) and stripped mortgage-backed (Interest Only (IOs) and Principal
         Only (POs))

- -        asset-backed securities

- -        swap, cap and floor transactions

- -        new financial products

- -        currency forwards

- -        structured instruments
    

These securities may be more volatile than other investments. Derivatives
present, to varying degrees, market, credit, leverage, liquidity, and management
risks. For a more detailed discussion of these risks, please read "Investment
Risks." A Fund's use of derivatives may cause the Fund to recognize higher
amounts of short-term capital gains (generally taxed at ordinary income tax
rates) than it would if the Fund did not use such instruments.

SMALL CAPITALIZATION COMPANIES: Investments in smaller, younger companies may be
riskier than investments in larger, more established companies. These companies
may be more vulnerable to changes in economic conditions, specific industry
conditions, market fluctuations, and other factors effecting the profitability
of other companies. Because economic events may have a greater impact on smaller
companies, there may be a greater and more frequent fluctuation in their stock
price. This may cause frequent and unexpected increases or decreases in the
value of your investment.

FIXED INCOME SECURITIES: Investments in fixed income securities (for example,
bonds) will increase or decrease in value based on changes in interest rates. If
rates increase, the value of a Fund's investments generally declines. On the
other hand, if rates fall, the value of the investments generally increases. The
value of your investment in a Fund will increase and decrease 


                                       79
<PAGE>   83

as the value of a Fund's investments increase and decrease. While securities
with longer duration and maturities tend to produce higher yields, they also are
subject to greater fluctuations in value when interest rates change. Usually
changes in the value of fixed income securities will not affect cash income
generated, but may affect the value of your investment. Fixed income securities
also are subject to the risk that the issuer of the security will be unable to
meet its repayment obligation.

INDEX FUNDS: An index fund's investment objective is to track the performance of
a specified index. Therefore, securities may be purchased, retained and sold by
an index fund at times when an actively managed fund would not do so. As a
result, you can expect greater risk of loss (and a correspondingly greater
prospect of gain) from changes in the value of securities that are heavily
weighted in the index than would be the case if the funds were not fully
invested in such securities. Because of this, an index fund's share price can be
volatile and you should be able to handle sudden, and sometimes substantial,
fluctuations in the value of your investment.

   
INTERNATIONAL FUNDS: Investments in foreign securities involve risks different
from investments in U.S. securities. For more details, see "Investment
Practices" and "Investment Risks." Because of these risk factors, the share
price of the International Equity Index Fund is expected to be volatile, and you
should be able to sustain sudden, and sometimes substantial, fluctuations in the
value of your investment. On January 1, 1999, the European Economic and Monetary
Union introduced the "Euro." The Euro will serve as a common currency for
participating European nations. All stocks issued by corporations located in
those nations will be denominated in Euros. In addition, outstanding shares will
be redenominated in Euros. All government bonds issued by participating nations
will be in Euros, and outstanding government bonds will be redonominated in
Euros. The introduction of the Euro presents some uncertainties, such as the
adequacy of newly created accounting, clearing, settlement and payment systems
for the new currency. These uncertainties surrounding the introduction of the
Euro could adversely affect the value of the securities held by the Fund.
    



                                       80
<PAGE>   84

   
HOW TO DO  BUSINESS WITH THE ONE GROUP MUTUAL FUNDS
    

PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

   
- -        The One Group Services Company, and

- -        Shareholder Servicing Agents. These include investment advisors,
         brokers, financial planners, banks, insurance companies, retirement or
         401(k) plan sponsors, or other intermediaries. Shares purchased this
         way will be held for you by the Shareholder Servicing Agent.
    

WHEN CAN I BUY SHARES?
   

- -        Purchases may be made on any business day. This includes any day that
         the Funds are open for business, other than weekends, days on which the
         New York Stock Exchange ("NYSE") is closed, and the following holidays:
         New Years Day, Martin Luther King, Jr. Day, Presidents' Day, Good
         Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving, and
         Christmas.

- -        Purchase requests received by The One Group Services Company before 
         4 p.m. Eastern Time ("ET") will be effective that day. On occasion, the
         NYSE will close before 4 p.m. ET. When that happens, purchase requests
         received after the NYSE closes will be effective the following business
         day.

- -        Purchase orders may be cancelled by the Fund's Custodian, State Street
         Bank and Trust Company, if it does not receive "federal funds" by 4:00
         p.m. ET (i) on the business day after the order is placed if you are
         buying Class I shares, and (ii) on the third business day if you are
         purchasing Class A, Class B or Class C shares.

- -        If your shares are held by a Shareholder Servicing Agent, it is the
         responsibility of the Shareholder Servicing Agent to send your purchase
         or redemption order to the Fund. Your Shareholder Servicing Agent may
         have an earlier cut-off time for purchase and redemption requests.

- -        The One Group Services Company can reject a purchase order if it does
         not think that it is in the best interests of a Fund and/or its
         shareholders to accept the order.

- -        Shares are electronically recorded. Therefore, certificates will not be
         issued.
    

WHAT KIND OF SHARES CAN I BUY?

   
One Group offers the following classes of shares:

- -        Class A, Class B and Class C shares are available to the general
         public.

- -        Class I shares are available to institutional investors and any
         organization authorized to act in a fiduciary, advisory, custodial or
         agency capacity. We will refer to these entities as "Intermediaries."

- -        If you intend to hold your shares for six or more years, Class B shares
         may be more appropriate for you. If you intend to hold your shares for
         less than six years, you may want to consider Class A or Class C
         shares.

- -        One Group Fund Direct IRA. One Group offers a retirement plan. This
         plan allows participants to defer taxes while their retirement savings
         grow. Call The One Group Services Company at 1-800-480-4111 for an
         Adoption Agreement.

HOW MUCH DO SHARES COST?

- -        Shares are sold at net asset value ("NAV") plus a sales charge, if any.

- -        Each class of shares in each Fund has a different NAV. This is
         primarily because each class has different distribution expenses.
    

                                       81
<PAGE>   85

   
- -        NAV per share is calculated by dividing the total market value of a
         Fund's investments and other assets allocable to a class (minus class
         expenses) by the number of outstanding shares in that class.

- -        A Fund's NAV changes every day. NAV is calculated each business day
         following the close of the NYSE at 4:00 p.m. ET. On occasion, the NYSE
         will close before 4 p.m. ET. When that happens, NAV will be calculated
         as of the time the NYSE closes.

HOW DO I OPEN AN ACCOUNT?

1.       Read the prospectus carefully, and select the Fund or Funds most
         appropriate for you.

2.       Decide how much you want to invest.

- -        The minimum initial investment is $1,000 ($100 for employees of BANK
         ONE CORPORATION and its affiliates). The minimum initial investment for
         an IRA is $250

- -        Subsequent investments must be at least $100 ($25 for employees of BANK
         ONE CORPORATION and its affiliates).

- -        You may purchase no more than $250,000 of Class B shares at one time.


- -        The One Group Services Company may waive these minimums.


3.       Complete the Account Application Form. Be sure to sign up for all of
         the Account privileges that you plan to take advantage of. Doing so now
         means that you will not have to complete additional paperwork later.


4.       Send the completed application and a personal check (unless you choose
         to pay by wire or bank transfer) payable to "One Group" to:

         State Street Bank and Trust Company
         c/o One Group
    

         P.O. Box 8528
         Boston, MA 02266-8528

         Contributions to Fund Direct IRAs should be made payable to "State
         Street Bank and Trust Company for the Benefit of (your name)."

5.       All checks should be in U.S. dollars. Third party checks will not be
         accepted. Redemptions from a Fund will not be permitted for ten (10)
         calendar days if purchases are made by check or under the Systematic
         Investment Plan (see below).

6.       If you purchase shares through a Shareholder Servicing Agent, you may
         be required to complete additional forms or follow additional
         procedures. You should contact your Shareholder Servicing Agent
         regarding purchases, exchanges and redemptions.

   

7.       If you have any questions, contact your Shareholder Servicing Agent or
         call The One Group Services Company at 1-800-480-4111.

    

CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes. Simply select this option on your Account Application Form and then:

   

- -        Contact your Shareholder Servicing Agent or The One Group Services
         Company at 1-800-480-4111 to relay your purchase instructions.

- -        Send a personal check made payable to "One Group" to State Street Bank
         and Trust Company (see address above), authorize a bank transfer, or
         initiate a wire transfer to the following wire address:

    

         State Street Bank and Trust Company
         Attn: Custody & Shareholder Services
         ABA 011 000 028
         DDA 99034167

                                       82
<PAGE>   86

   
         FBO One Group Fund (ex: One Group Balanced Fund--A)
         Your Account Number (ex: 123456789)
         Your Account Registration (ex: John Smith & Mary Smith, JTWROS)
    

   
- -        One Group uses reasonable procedures to confirm that instructions given
         by telephone are genuine. These procedures include recording telephone
         instructions and asking for personal identification. If these
         procedures are followed, One Group will not be responsible for any
         loss, liability, cost or expense of acting upon unauthorized or
         fraudulent instructions; you bear the risk of loss.

    

- -        You may revoke your right to make purchases over the telephone by
         sending a letter to:
   
         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

CAN I AUTOMATICALLY INVEST ON A SYSTEMATIC BASIS?

   
Yes. After your Account is established, you may purchase additional Class A,
Class B and Class C shares by making automatic monthly investments from your
bank account. The minimum initial investment is still $1,000, but minimum
automatic additions are only $25. The One Group Services Company may waive these
minimums. To establish a Systematic Investment Plan:
    

- -        Select the "Systematic Investment Plan" option on the Account
         Application Form.

- -        Provide the necessary information about the bank account from which
         your investments will be made.

- -        Shares purchased under a Systematic Investment Plan may not be redeemed
         for ten (10) calendar days.

   
 
- -        One Group currently does not charge for this service, but may
         impose a charge in the future. However, your bank may impose a charge
         for debiting your bank account.

    



                                       83
<PAGE>   87

You may revoke your right to make systematic investments by sending a letter to:

   
         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

CONVERSION FEATURE

Your Class B shares automatically convert to Class A shares after eight years
(measured from the end of the month in which they were purchased).

- -        After conversion, your shares will be subject to the lower distribution
         and shareholder servicing fees charged on Class A shares.

- -        You will not be assessed any sales charges or fees for conversion of
         shares, nor will you be subject to any Federal income tax.

- -        Because the share price of the Class A shares may be higher than that
         of the Class B shares at the time of conversion, you may receive fewer
         Class A shares; however, the dollar value will be the same.

- -        If you have exchanged Class B shares of one Fund for Class B shares of
         another, the time you held the shares in each Fund will be added
         together.


                                       84
<PAGE>   88

SALES CHARGES

   
The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from sales charges, 12b-1 fees and
payments by The One Group Services Company from its own resources. Occasionally,
The One Group Services Company, at its own expense, also will provide cash
incentives which will be paid to select Shareholder Servicing Agents. Those
Shareholder Servicing Agents who may receive special incentives include Banc One
Securities Corporation, The Advisors Group, United Planners Financial Services
of America, Inc., The Legend Group, and Rosewood Retirement Advisory Services,
LLC. The One Group Services Company pays additional compensation to Shareholder
Servicing Agents for sales of over $1 million dollars of Class A shares.
Shareholder Servicing Agents receive 1.00% of the purchase price of Class A
shares for sales of $1 million to $5 million, and 0.50% on amounts over $5
million.
    

CLASS A SHARES

This table shows the amount of sales charge you pay and the commissions paid to
Shareholder Servicing Agents.

   
<TABLE>
<CAPTION>
                                                              SALES CHARGE          SALES CHARGE         COMMISSION
                                                              AS A % OF THE        AS A % OF YOUR         AS A % OF
AMOUNT OF PURCHASE                                           OFFERING PRICE          INVESTMENT        OFFERING PRICE
- ------------------                                           --------------        ---------------     ---------------
<S>                                                             <C>                <C>                   <C>  
Less than $50,000                                                    5.25%               5.54%                4.75%
$50,000-$99,999                                                      4.50%               4.71%                4.05%
$100,000-$249,999                                                    3.50%               3.63%                3.05%
$250,000-$499,999                                                    2.50%               2.56%                2.05%
$500,000-$999,999                                                    2.00%               2.04%                1.60%
$1,000,000*                                                          0.00%               0.00%                0.00%
</TABLE>
    


   
* If you purchase $1 million or more of Class A shares and are not assessed a
sales charge at the time of purchase, you will be charged the equivalent of 1%
of the purchase price if you redeem any or all of the Class A shares within one
year of purchase and 0.50% of the purchase price if you redeem within two years
of purchase, unless The One Group Services Company receives notice before you
invest indicating that your Shareholder Servicing Agent is waiving its
commission.
    

CLASS B SHARES

Class B shares are offered at NAV, without any up-front sales charges. However,
if you redeem these shares within six years of the purchase date, you will be
assessed a Contingent Deferred Sales Charge ("CDSC") according to the following
schedule:
<TABLE>
<CAPTION>
                                                                                           CDSC AS A % OF DOLLAR
        YEARS SINCE PURCHASE                                                             AMOUNT SUBJECT TO CHARGE
        --------------------                                                             ------------------------
<S>                                                                                             <C>  
                 0-1                                                                                 5.00%
                 1-2                                                                                 4.00%
                 2-3                                                                                 3.00%
                 3-4                                                                                 3.00%
                 4-5                                                                                 2.00%
                 5-6                                                                                 1.00%
             more than 6                                                                             0.00%
</TABLE>
   
The One Group Services Company pays a commission of 4.00% of the original
purchase price to Shareholder Servicing Agents who sell Class B shares.
    



                                       85
<PAGE>   89

CLASS C SHARES

Class C shares are offered at NAV, without any up-front sales charge. However,
if you redeem your shares within one year of the purchase date, you will be
assessed a CDSC as follows:
<TABLE>
<CAPTION>
                                                                                           CDSC AS A % OF DOLLAR
        YEARS SINCE PURCHASE                                                             AMOUNT SUBJECT TO CHARGE
        --------------------                                                             ------------------------
<S>                                                                                       <C>
                 0-1                                                                                 1.00%
          After first year                                                                            none
</TABLE>
   
Shareholder Servicing Agents selling Class C shares receive a commission of
1.00% of the original purchase price from The One Group Services Company.
    

How the CDSC is Calculated

- -        The Fund assumes that all purchases made in a given month were made on
         the first day of the month.

- -        The CDSC is based on the current market value or the original cost of
         the shares, whichever is less.

- -        A sales charge is not imposed on increases in NAV above the initial
         purchase price, nor is a sales charge assessed on shares acquired
         through reinvestment of dividends or capital gains distributions.

- -        To keep your CDSC as low as possible, the Fund first will redeem any
         shares in your account that carry no CDSC, starting with Class A
         Shares. After that, the Fund will redeem the shares you have held for
         the longest time and thus have the lowest CDSC.

   
- -        If you exchange Class B or Class C shares of an unrelated mutual fund
         for Class B or Class C shares of One Group in connection with a fund
         reorganization, the CDSC applicable to your original shares (including
         the period of time you have held those shares) will be applied to One
         Group shares you receive in the reorganization.
    

12b-1 FEES

   
12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to Shareholder Servicing Agents that sell
shares of One Group.
    

- -        The 12b-1 fees vary by share class as follows:

         1.       Class A shares pay a 12b-1 fee of .35% of the average daily
                  net assets of the Fund, which is currently being waived to
                  .25%.

         2.       Class B and Class C shares pay a 12b-1 fee of 1.00% of the
                  average daily net assets of the Fund. This will cause expenses
                  for Class B and Class C shares to be higher and dividends to
                  be lower than for Class A shares.

         3.       There are no 12b-1 fees for Class I shares.

   
 
- -        12b-1 fees, together with the CDSC, help The One Group Services Company
         sell Class B and Class C shares without an "up-front" sales charge by
         defraying the costs of advancing brokerage commissions and other
         expenses paid to Shareholder Servicing Agents.

- -        The One Group Services Company may use up to .25% of the fees
         for shareholder servicing and up to .75% for distribution. During the
         last fiscal year, The One Group Services Company received 12b-1 fees
         totaling .25% and 1.00% of the average daily net assets of Class A and
         Class B shares, respectively.

- -        The One Group Services Company may pay 12b-1 fees to its affiliates and
         to Banc One Investment Advisors and its affiliates (or any sub-advisor)
         for brokerage and other agency transactions.
    

                                       86
<PAGE>   90

SALES CHARGE REDUCTIONS AND WAIVERS

REDUCING YOUR CLASS A SALES CHARGES

There are several ways you can reduce the sales charges you pay on Class A
shares:

1.       Right of Accumulation: You may add the market value of any Class A,
         Class B or Class C shares of a Fund (except a money market fund) that
         you (and your spouse and minor children) already own to the amount of
         your next Class A purchase for purposes of calculating the sales
         charge. An Intermediary also may take advantage of this option.

2.       Letter of Intent: With an initial investment of $2,000, you may
         purchase Class A shares of one or more funds over the next 13 months
         and pay the same sales charge that you would have paid if all shares
         were purchased at once. A percentage of your investment will be held in
         escrow until the full amount covered by the Letter of Intent has been
         invested.

   
To take advantage of the accumulation privilege or letter of intent, complete
the appropriate section of your fund application, or contact your investment
representative. To determine if you are eligible for the accumulation privilege,
contact The One Group Services Company at 1-800-480-4111. These programs may be
terminated or amended at any time.
    

WAIVER OF THE CLASS A SALES CHARGE

No sales charge is imposed on Class A shares of the Funds if the shares were:

1.       Bought with the reinvestment of dividends and capital gains
         distributions.

2.       Acquired in exchange for other Fund shares if a comparable sales charge
         has been paid for the exchanged shares.

3.       Bought by officers, directors or trustees, retirees and employees (and
         their spouses and immediate family members) of:

   

         -        One Group.

    

         -        BANK ONE CORPORATION and its subsidiaries and affiliates.

   

         -        The One Group Services Company and its subsidiaries and
                  affiliates.

    

         -        State Street Bank and Trust Company and its subsidiaries and
                  affiliates.

   
 
         -        Broker/dealers who have entered into dealer agreements with
                  One Group and their subsidiaries and affiliates.

         -        An investment sub-advisor of a fund of One Group and such
                  sub-advisor's subsidiaries and affiliates.

    


                                       87
<PAGE>   91


4.       Bought by:

   

         -        Affiliates of BANK ONE CORPORATION and certain accounts (other
                  than IRA Accounts) for which an Intermediary acts in a
                  fiduciary, advisory, agency, custodial or Accounts which
                  participate in select affinity programs with BANK ONE
                  CORPORATION and its affiliates and subsidiaries.

         -        Accounts as to which a bank or broker-dealer charges an asset
                  allocation fee, provided the bank or broker-dealer has an
                  agreement with The One Group Services Company.
    

         -        Retirement and deferred compensation plans and trusts used to
                  fund those plans, including, but not limited to, those defined
                  in sections 401(a), 403(b) or 457 of the Internal Revenue Code
                  and "rabbi trusts."

   
   
         -        Shareholder Servicing Agents who have a dealer arrangement
                  with The One Group Services Company, who place trades for
                  their own accounts or for the accounts of their clients and
                  who charge a management, consulting or other fee for their
                  services, as well as clients of such Shareholder Servicing
                  Agents who place trades for their own accounts if the accounts
                  are linked to the master account of such Shareholder Servicing
                  Agent.

5.       Bought with proceeds from the sale of Class I shares of a One Group
         Fund or acquired in an exchange of Class I shares of a Fund for Class A
         shares of the same Fund, but only if the purchase is made within 60
         days of the sale or distribution.

6.       Bought with proceeds from the sale of shares of a mutual fund,
         including a One Group Fund , for which a sales charge was paid, but
         only if the purchase is made within 60 days of the sale or
         distribution.

7.       Bought in an IRA with the proceeds of a distribution from an employee
         benefit plan, but only if the purchase is made within 60 days of the
         sale or distribution and, at the time of the distribution, the employee
         benefit plan had plan assets invested in a One Group Fund .

8.       Bought with assets of One Group.

    

9.       Bought in connection with plans of reorganizations of a Fund, such as
         mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

The waivers described in (5), (6) and (7) above will not continue indefinitely
and may be discontinued at any time without notice.

WAIVER OF THE CLASS B SALES CHARGE

No sales charge is imposed on redemptions of Class B shares of the Funds:

1.       Provided that you withdraw no more than 10% of your account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age 70
         1/2.


5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   

6.       Acquired in exchange for Class B shares of other One Group Funds.

    

WAIVER OF THE CLASS C SALES CHARGE

                                       88
<PAGE>   92

No sales charge is imposed on redemptions of Class C shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age 70
         1/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   

6.       Acquired in exchange for Class C shares of other One Group Funds.

7.       If The One Group Services Company receives notice before you invest
         indicating that your Shareholder Servicing Agent, due to the type of
         account that you have, is waiving its commission.

To take advantage of any of these sales charge waivers, you must qualify for
such waiver in advance. To see if you qualify, contact The One Group Services
Company at 1-800-480-4111 or your Shareholder Servicing Agent.
    

EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

You may make the following exchanges:

   

- -        Class I shares of a Fund may be exchanged for Class A shares of that
         Fund or for Class A or Class I shares of another One Group Fund.

- -        Class A shares of a Fund may be exchanged for Class I shares of that
         Fund or for Class A or Class I shares of another One Group Fund, but
         only if you are eligible to purchase those shares.

- -        Class B shares of a Fund may be exchanged for Class B shares of another
         One Group Fund.

- -        Class C shares of a Fund may be exchanged for Class C shares of another
         One Group Fund.

One Group Funds offer a Systematic Exchange Privilege which allows you to
automatically exchange shares of one fund to another on a monthly or quarterly
basis. This privilege is useful in Dollar Cost Averaging. To participate in this
privilege, please select it on your account application. To learn more about it,
please call The One Group Services Company at 1-800-480-4111.

One Group does not charge a fee for this privilege. In addition, The One Group
may change the terms and conditions of your exchange privileges upon 60 days
written notice.
    

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

- -        State Street Bank and Trust Company receives the request by 4:00 p.m.,
         ET.

   
 
- -        You have provided One Group with all of the information necessary to
         process the exchange.
    

- -        You have received a current prospectus of the Fund or Funds in which
         you wish to invest.

- -        You have contacted your Shareholder Servicing Agent, if necessary.

DO I PAY A SALES CHARGE ON AN EXCHANGE?

                                       89
<PAGE>   93

Generally, you will not pay a sales charge on an exchange. However:

- -        You will pay a sales charge if you own Class I shares of a Fund and you
         want to exchange those shares for Class A shares, unless you qualify
         for a sales charge waiver (see above).

- -        You will pay a sales charge if you bought Class A shares of a Fund:

         1.       That does not charge a sales charge and you want to exchange
                  them for shares of a Fund that does, in which case you would
                  pay the sales charge applicable to the Fund into which you are
                  exchanging.

         2.       That charged a lower sales charge than the Fund into which you
                  are exchanging, in which case you would pay the difference
                  between that Fund's sales charge and all other sales charges
                  you have already paid.

- -        If you exchange Class B or Class C shares of a Fund, you will not pay a
         sales charge at the time of the exchange, however:

         1.       Your new Class B or Class C shares will be subject to the
                  higher CDSC of either the Fund from which you exchanged, the
                  Fund into which you exchanged, or any Fund from which you
                  previously exchanged.

         2.       The current holding period for your exchanged Class B or Class
                  C shares is carried over to your new shares.

ARE EXCHANGES TAXABLE?

Generally:

- -        An exchange between classes of shares of the same Fund is not taxable
         for Federal income tax purposes.

- -        An exchange between Funds is considered a sale and generally results in
         a capital gain or loss for Federal income tax purposes.

- -        You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short term movements in the market. Therefore:

   

- -        To prevent disruptions in the management of the Funds, One Group limits
         excessive exchange activity.
    

- -        Exchange activity is excessive if it EXCEEDS TWO SUBSTANTIVE EXCHANGE
         REDEMPTIONS (WITHIN 30 DAYS OF EACH OTHER) WITHIN A TWELVE MONTH
         PERIOD.

   
 
- -        In addition, One Group reserves the right to reject any exchange
         request (even those that are not excessive) if the Fund reasonably
         believes that the exchange will result in excessive transaction costs
         or otherwise adversely affect other shareholders.
    

REDEEMING FUND SHARES

WHEN CAN I REDEEM SHARES?

You may redeem all or some of your shares on any day that the Funds are open for
business.

   
 
- -        Redemption requests received by The One Group Services Company before
         4:00 p.m. ET (or when the NYSE closes) will be effective that day.

    

HOW DO I REDEEM SHARES?

- -        Unless you have selected the telephone option on your Account
         Application - Form, you must send a written redemption request to your
         Shareholder Servicing Agent, if applicable, or to State Street Bank and
         Trust Company at the following address:



                                       90
<PAGE>   94
   
         One Group
    
         c/o State Street Bank and Trust Company
         P.O. Box 8528
         Boston, MA 02266-8528

- -        All requests for redemptions from IRA accounts must be in writing.

   
 
- -        You may request redemption forms by calling The One Group Services
         Company at 1-800-480-4111.
    

- -        State Street Bank and Trust Company may require that the signature on
         your redemption request be guaranteed by a commercial bank, a member of
         a domestic stock exchange, or a member of the Securities Transfer
         Association Medallion Program or the Stock Exchange Medallion Program,
         unless:

         1.       the redemption is for $50,000 worth of shares or less;

         2.       the redemption is payable to the shareholder of record;

         3.       the redemption check is mailed to the shareholder at the
                  record address; or

         4.       the redemption is payable by wire or bank transfer (ACH) to a
                  pre-existing bank account.

- -        On the Account Application Form you may elect to have the redemption
         proceeds mailed or wired to:

         1.       a designated commercial bank; or

         2.       State Street Bank and Trust Company or your Shareholder
                  Servicing Agent.

- -        State Street Bank and Trust Company may charge you a wire redemption
         fee. The current charge is $7.00.

- -        Your redemption proceeds will be paid within seven days after receipt
         of the redemption request.

WHAT WILL MY SHARES BE WORTH?

- -        If you own Class A and Class I shares and the Fund receives your
         redemption request by 4:00 p.m. ET (or when the NYSE closes), you will
         receive that day's NAV.

- -        If you own Class B or Class C shares and the Fund receives your
         redemption request by 4:00 p.m. ET (or when the NYSE closes), you will
         receive that day's NAV, minus the amount of any applicable CDSC.

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.

- -        Call your Shareholder Servicing Agent or State Street Bank and Trust
         Company at 1-800-480-4111 to relay your redemption request.

- -        Your redemption proceeds will be mailed or wired to the commercial bank
         account you designated on your Account Application Form.

- -        State Street Bank and Trust Company may charge you a wire redemption
         fee. The current charge is $7.00.

   
 
- -        One Group uses reasonable procedures to confirm that instructions given
         by telephone are genuine. These procedures include recording telephone
         instructions and asking for personal identification. If these
         procedures are followed, One Group will not be responsible for any
         loss, liability, cost or expense of acting upon unauthorized or
         fraudulent instructions; you bear the risk of loss.
    

- -        Redemptions from your IRA account may not be made by telephone.

                                       91
<PAGE>   95


CAN I REDEEM ON A SYSTEMATIC BASIS?

If you have an account value of at least $10,000, you may elect to receive
monthly, quarterly or annual payments of not less than $100 each.

- -    Select the "Systematic Withdrawal Plan" option on the Account Application
     Form.

- -    Specify the amount you wish to receive and the frequency of the payments.

- -    You may designate a person other than yourself as the payee.

- -    There is no charge for this service.

- -    If you select this option, please keep in mind that:

         1.       It may not be in your best interest to buy additional Class A
                  shares while participating in a Systematic Withdrawal Plan.
                  This is because Class A shares have an up-front sales charge.

         2.       If you own Class B or Class C shares, you or your designated
                  payee may receive systematic payments provided the payments
                  are limited to no more than 10% of your account value
                  annually, measured from the date the redemption request is
                  received.

         3.       If you are age 70 1/2, you may elect to receive payments to
                  the extent that the payment represents a minimum required
                  distribution from an IRA or other qualifying retirement plan.

         4.       If the amount of the systematic payment exceeds the income
                  earned by your account since the previous payment under the
                  Systematic Withdrawal Plan, payments will be made by redeeming
                  some of your shares. This will reduce the amount of your
                  investment.

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

- -    All redemptions will be for cash.

   
- -    If you redeem shares for which you paid by check, and One Group has not yet
     received payment on the check, One Group will delay forwarding your
     redemption proceeds for 10 or more days until payment has been collected
     from your bank.

- -    Because of the high cost of handling small investments, One Group charges a
     sub-minimum account fee. Accounts under $1,000 that are not participating
     in a Systematic Investment Plan will be assessed an annual fee of $10.00.
     The sub-minimum account fee will not apply to IRA accounts and the accounts
     of employees of BANK ONE CORPORATION and its affiliates.

- -    One Group may suspend your ability to redeem when:
    

         1.       Trading on the New York Stock Exchange ("NYSE") is restricted.

         2.       The NYSE is closed (other then weekend and holiday closings).

         3.       The SEC has permitted a suspension.

         4.       An emergency exists.

The Statement of Additional Information offers more details about this process.

- -    You generally will recognize a gain or loss on a redemption for Federal
     income tax purposes. You should talk to your tax advisor before making a
     redemption.



                                       92
<PAGE>   96


SHAREHOLDER INFORMATION

VOTING RIGHTS

The Funds do not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change a Fund's fundamental investment objective, or approve an
investment advisory contract.

As a Fund shareholder, you have one vote for each share that you own. Each Fund,
and each class of shares within each Fund, vote separately on matters relating
solely to that Fund or class, or which affect that Fund or class differently.
However, all shareholders will have equal voting rights on matters that affect
all shareholders equally.

   
BANK ONE CORPORATION (One First National Plaza, Chicago Illinois, 60670),
through its affiliates, may be deemed for purposes of the Investment Company Act
of 1940, to control the Funds. This is because as of December 1, 1998, BANK ONE
CORPORATION or its affiliates possessed the power to vote substantially all of
the Class I shares of the Funds.
    

On the same date, the following shareholders owned 25% or more of Class A, Class
B or Class C shares of the Funds. As a consequence, they are considered to be
controlling persons of these classes of the Funds listed below.



   
<TABLE>
<CAPTION>
NAME AND                                                                       PERCENTAGE OF       TYPE OF
ADDRESS                                            FUND/CLASS                  OWNERSHIP           OWNERSHIP
- -------                                            ----------                  ---------           ---------
<S>                                                <C>                         <C>                 <C>
STRAFE & CO                                        LARGE CAP GROWTH FUND       89.31%              RECORD
BOIA - ONE GROUP OPERATIONS                        CLASS I
1111 POLARIS PARKWAY
PO BOX 710211
COLUMBUS, OH 43271-0211
STRAFE & CO

BOIA - ONE GROUP OPERATIONS                        MID CAP VALUE FUND          86.93%              RECORD
1111 POLARIS PARKWAY                               CLASS I
PO BOX 710211
COLUMBUS, OH 43271-0211

BANC ONE SECURITIES CORP FBO                       MID CAP GROWTH FUND         83.94%              RECORD
THE ONE INVESTMENT SOLUTION                        CLASS C
733 GREENCREST DR
WESTERVILLE, OH 43081-4903

DEAN WITTER FOR THE BENEFIT OF                     EQUITY INCOME FUND          68.69%              RECORD
MCKEE CHAR TR/LYNN A HAMMOND &                     CLASS C
CLARE W WHITE CO-TTEES
CHURCH ST STATION - PO BOX 250
NEW YORK NY 10013-0250

STRAFE & CO                                        EQUITY INCOME FUND          92.60%              RECORD
BOIA - ONE GROUP OPERATIONS                        CLASS I
1111 POLARIS PARKWAY
PO BOX 710211
COLUMBUS OH 43271-0211
</TABLE>
    


                                       93
<PAGE>   97



   
<TABLE>
<CAPTION>
NAME AND                                                                       PERCENTAGE OF       TYPE OF
ADDRESS                                            FUND/CLASS                  OWNERSHIP           OWNERSHIP
- -------                                            ----------                  ---------           ---------

<S>                                                <C>                         <C>                 <C>
STRAFE & CO.                                       EQUITY INDEX FUND           86.94%              RECORD
BOIA - ONE GROUP OPERATIONS                        CLASS I
1111 POLARIS PARKWAY
PO BOX 710211
COLUMBUS OH 43271-0211

BANC ONE SEC SVGS PLAN -EQUITY FUND                EQUITY INDEX FUND           32.61%              BENEFICIAL
100 E BROAD STREET                                 CLASS I
COLUMBUS, OH 43215-3607

STRAFE & CO.                                       LARGE CAP VALUE FUND        86.94%              RECORD
BOIA - ONE GROUP OPERATIONS                        CLASS I
1111 POLARIS PARKWAY
PO BOX 710211
COLUMBUS OH 43271-0211

STRAFE & CO CASH                                   MID CAP GROWTH FUND         84.32%              RECORD
BOIA - ONE GROUP OPERATIONS                        CLASS I
1111 POLARIS PARKWAY
PO BOX 710211
COLUMBUS, OH 43271-0211

BANC ONE SECURITIES CORP FBO                       INTERNATIONAL EQUITY        60.15%              RECORD
THE ONE INVESTMENT SOLUTION                        INDEX FUND
733 GREENCREST DR                                  CLASS C
WESTERVILLE OH 43081-4903

STRAFE & CO.
BOIA - ONE GROUP OPERATIONS                        INTERNATIONAL EQUITY        88.52%              RECORD
1111 POLARIS PARKWAY                               INDEX FUND
PO BOX 710211                                      CLASS I
COLUMBUS OH 43271-0211

BANC ONE SECURITIES CORP FBO                       DIVERSIFIED EQUITY FUND     82.92%              RECORD
THE ONE INVESTMENT SOLUTION                        CLASS C
733 GREENCREST DR
WESTERVILLE OH 43081-4903
</TABLE>
    



                                       94
<PAGE>   98


   
<TABLE>
<S>                                                <C>                         <C>                 <C>
STRAFE & CO.
BOIA - ONE GROUP OPERATIONS                        DIVERSIFIED EQUITY FUND     81.54%              RECORD
1111 POLARIS PARKWAY                               CLASS I
PO BOX 710211
COLUMBUS OH 43271-0211

STRAFE & CO.                                       SMALL CAP GROWTH FUND       78.04%              RECORD
BOIA - ONE GROUP OPERATIONS                        CLASS I
1111 POLARIS PARKWAY
PO BOX 710211
COLUMBUS OH 43271-0211

STRAFE & CO.
BOIA - ONE GROUP OPERATIONS                        BALANCED FUND               90.92%              RECORD
1111 POLARIS PARKWAY                               CLASS I
PO BOX 710211
COLUMBUS OH 43271-0211

FCC PENSION                                        BALANCED FUND               33.90%              BENEFICIAL
100 E BROAD STREET                                 CLASS I
COLUMBUS, OH 43215-3607
</TABLE>
    

DIVIDEND POLICIES

DIVIDENDS

The Funds generally declare dividends on the last business day of each month.
Dividends are distributed on the first business day of the next month. Capital
gains, if any, for all Funds are distributed at least annually.

The Funds pay dividends and distributions on a per-share basis. This means that
the value of your shares will be reduced by the amount of the payment. If you
purchase shares shortly before the record date for a dividend or the
distribution of capital gains, you will pay the full price for the shares and
receive some portion of the price back as a taxable dividend or distribution.

Dividends payable on Class I shares will be more than those payable on other
classes of shares. This is because Class A, Class B and Class C shares have
higher distribution expenses.

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund and class, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.

SPECIAL DIVIDEND RULES FOR CLASS B SHARES

Class B shares received as dividends and capital gains distributions will be
accounted for separately. Each time any Class B shares (other than those in the
sub-account) convert to Class A shares, a percentage of the Class B shares in
the sub-account will also convert to Class A shares. (See "Conversion
Feature.")



                                       95
<PAGE>   99


TAX TREATMENT OF THE FUNDS

TAX STATUS OF THE FUND

Each Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Funds qualify, as they have in the past, they will
pay no federal income tax on the earnings they distribute to shareholders.

TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of Fund shares generally will produce either a
taxable gain or a loss. You are responsible for any tax liabilities generated by
your transactions.

TAXATION OF DISTRIBUTIONS

Each Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gains) on at least an
annual basis. Dividends you receive from a Fund, whether reinvested or received
in cash, will be taxable to you. Dividends from a Fund's net investment income
will be taxable as ordinary income and dividends from a Fund's long-term capital
gains will be taxable to you as such, regardless of how long you have held the
shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

TAXATION OF RETIREMENT PLANS

Distributions by the Funds to qualified retirement plans will not be taxable.
However, if shares are held by a plan that ceases to qualify for tax-exempt
treatment or by an individual who has received shares as a distribution from a
retirement plan, the distributions will be taxable to the plan or individual as
described in "Taxation of Distributions." If you are considering purchasing
shares with qualified retirement plan assets, you should consult your tax
advisor for a more complete explanation of the Federal, state, local and (if
applicable) foreign tax consequences of making such an investment.

TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Funds provide you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Funds or their shareholders.

SHAREHOLDER INQUIRIES

   
If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.
    

REPORTING

   
In March and September you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.
    


                                       96
<PAGE>   100


ORGANIZATION AND MANAGEMENT OF THE FUNDS

THE FUNDS

   
Each Fund is a series of The One Group, an open-end management investment
company. The One Group currently offers of 49 separate Funds. Fourteen of the
Funds are described in this prospectus; the other Funds are described in
separate prospectuses. Each Fund described in this prospectus is diversified.
Each Fund is supervised by the Board of Trustees.
    

THE BOARD OF TRUSTEES

   
The Trustees oversee the management and administration of the Funds. The
Trustees are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Funds
to the officers of The One Group.
    

THE ADVISOR

   
Banc One Investment Advisors makes the day-to-day investment decisions for the
Funds and continuously reviews, supervises and administers the Funds' investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets.
    

For the fiscal year ended June 30, 1998, the Funds paid advisory fees at the
following rates:

FUND NAME

   
<TABLE>
<CAPTION>
                                                                                ANNUAL RATE AS
                                                                             PERCENTAGE OF AVERAGE
                                                                               DAILY NET ASSETS
                                                                               ----------------
<S>                                                                                   <C> 
         One Group(R)Balanced Fund                                                       .56%
         One Group(R)Large Cap Growth Fund                                               .74%
         One Group(R)Large Cap Value Fund                                                .74%
         One Group(R)Mid Cap Growth Fund                                                 .74%
         One Group(R)International Equity Index Fund                                     .47%
         One Group(R)Mid Cap Value Fund                                                  .74%
         One Group(R)Equity Index Fund                                                   .10%
         One Group(R)Equity Income Fund                                                  .74%
         One Group(R)Diversified Equity Fund                                             .74%
         One Group(R)Small Cap Growth Fund                                               .74%
         One Group(R)Small Cap Value Fund                                               .___%*
         One Group(R)Diversified Mid Cap Fund                                           .___%*
         One Group(R)Diversified International Fund                                     .___%*
         One Group(R)Market Expansion Index Fund                                        .___%*

* The predecessors of these Funds had a December 31 year end. The advisory fees
  shown are as of December 31, 1998.

         As the assets in the Funds increase, the investment advisory fees for
each of the Funds, other than the Balanced Fund, the International Equity Index
Fund, the Equity Index Fund, and the Diversified Index Fund are reduced as
follows:

         First $1.5 billion                                                              .74%
         Next $500 million                                                               .70%
         Thereafter                                                                      .65%
</TABLE>
    


                                       97

<PAGE>   101



THE SUB-ADVISOR

Independence International Associates, Inc. ("Independence International"), 53
State Street, Boston, Massachusetts, 02109, is the sub-advisor to the
International Equity Index Fund. Independence International specializes in the
management of international equity portfolios. Independence International is an
indirect subsidiary of John Hancock Mutual Life Insurance Company. As of June
30, 1998, Independence International had approximately $2.2 billion in assets
under management.

For the fiscal year ended June 30, 1998, Banc One Investment Advisors paid
Independence International sub-investment advisory fees at the following rates:

FUND ASSETS

<TABLE>
<CAPTION>
                                                              ANNUAL RATE AS
                                                           PERCENTAGE OF AVERAGE
                                                             DAILY NET ASSETS
                                                             ----------------

<S>                                                                  <C>  
         Up to $10 million                                           .275%
         Over $10,000,000 up to $25,000,000                          .225%
         Over $25,000,000 up to $50,000,000                          .195%
         Over $50,000,000 up to $100,000,000                         .125%
         Over $100,000,000                                           .060%
</TABLE>

THE DISTRIBUTOR

   
The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Funds and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.
    

THE ADMINISTRATOR AND SUB-ADMINISTRATOR

   
The One Group Services Company also serves as the Funds' administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory compliance and
reporting. For these services, The One Group Services Company receives a fee
based on the total assets of One Group. For the first $1.5 billion in One Group
assets, The One Group Services Company receives an annual fee of .20% of each
Fund's average daily net assets. The annual rate declines to .18% on assets up
to $2 billion, and to .16% when assets exceed $2 billion. The fee is calculated
daily and paid monthly. Some Funds are not included in the calculations. Banc
One Investment Advisors, the Sub-Administrator, provides office space,
equipment, and facilities, as well as legal and regulatory support.
    

THE TRANSFER AGENT, CUSTODIAN AND SUB-CUSTODIAN

State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528, or
your Shareholder Servicing Agent, if appropriate, handles shareholder
recordkeeping and statementing, distributes dividends, and processes buy and
sell requests. As the Funds' custodian, State Street holds the Funds' assets,
settles all portfolio trades and assists in calculating the Funds' net asset
values. Bank One Trust Company, N.A. serves as sub-custodian in connection with
the Funds' securities lending activities under an agreement with State Street
Bank and Trust Company. Bank One Trust Company, N.A. is paid a fee by the Funds
for this service.

YEAR 2000

   
Preparing for the Year 2000 is a high priority for One Group. Both The One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
One Group. Year 2000 remediation efforts are directed toward both information
technology and non-information technology systems. Non-information technology
systems include elevators, photocopy machines, and facsimile machines, and
should have no significant impact on the delivery of services to One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.
    

                                       98
<PAGE>   102


   
Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.

Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipates that the move to Year 2000 will have a material impact on
their ability to continue to provide the Funds with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.
    



                                       99
<PAGE>   103


DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The Funds invest in a variety of securities and employ a number of investment
techniques. Each security and technique involves certain risks. What follows is
a list of the securities and techniques utilized by the Funds, as well as the
risks inherent in their use. Equity securities are subject mainly to market
risk. Fixed income securities are primarily influenced by market, credit and
prepayment risks, although certain securities may be subject to additional
risks. For a more complete discussion, see the Statement of Additional
Information. Following the table is a more complete discussion of risk.

FUND NAME

<TABLE>
<CAPTION>
                                                                                                         Fund Code
                                                                                                         ---------

   
<S>                                                                                                            <C>
         One Group(R)Balanced Fund                                                                              1
         One Group(R)Large Cap Growth Fund                                                                      2
         One Group(R)Large Cap Value Fund                                                                       3
         One Group(R)Mid Cap Growth Fund                                                                        4
         One Group(R)International Equity Index                                                                 5
         One Group(R)Mid Cap Value Fund                                                                         6
         One Group(R)Equity Index Fund                                                                          7
         One Group(R)Equity Income Fund                                                                         8
         One Group(R)Diversified Equity Fund                                                                    9
         One Group(R)Small Cap Growth Fund                                                                     10
         One Group(R)Small Cap Value Fund                                                                      11
         One Group(R)Diversified Mid Cap Fund                                                                  12
         One Group(R)Diversified International Fund                                                            13
         One Group(R)Market Expansion Index Fund                                                               14
</TABLE>

<TABLE>
<CAPTION>
INSTRUMENT                                                                                   FUND CODE        RISK TYPE
- ----------                                                                                   ---------        ---------
    

<S>                                                                                              <C>          <C>
U.S. TREASURY OBLIGATIONS: Bills, notes, bonds, STRIPS, and CUBES.                               1-14          Market

TREASURY RECEIPTS: TRS, TIGRs, and CATS.                                                         1-14          Market

U.S. GOVERNMENT AGENCY SECURITIES: Securities issued by agencies                                 1-14          Market
and instrumentalities of the U.S. Government. These include                                                    Credit
Ginnie Mae, Fannie Mae, and Freddie Mac.

CERTIFICATES OF DEPOSIT: Negotiable instruments with a stated                                    1-14          Market
maturity.                                                                                                      Credit
                                                                                                              Liquidity

TIME DEPOSITS: Non-negotiable receipts issued by a bank in                                       1-14         Liquidity
exchange for the deposit of funds.                                                                             Credit
                                                                                                               Market

COMMON STOCK: Shares of ownership of a company.                                                  1-14          Market

REPURCHASE AGREEMENTS: The purchase of a security and the                                        1-14          Credit
simultaneous commitment to return the security to the seller                                                   Market
at an agreed upon price on an agreed upon date. This is treated                                               Liquidity
as a loan.

REVERSE REPURCHASE AGREEMENT: The sale of a security and the                                     1-14          Market
simultaneous commitment to buy the security back at an agreed                                                 Leverage
upon price on an agreed upon date. This is treated as a borrowing
by a Fund.
</TABLE>


                                      100
<PAGE>   104



<TABLE>
<CAPTION>
   
INSTRUMENT                                                                                   FUND CODE        RISK TYPE
- ----------                                                                                   ---------        ---------
    
<S>                                                                                       <C>                 <C>
SECURITIES LENDING: The lending of up to 33 1/3% of the Fund's                                  1-14           Credit
total assets. In return the Fund will receive cash, other                                                      Market
securities, and/or letters of credit as collateral.                                                           Leverage

   
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS: Purchase or                                     1-14           Market
contract to purchase securities at a fixed price for delivery                                                 Leverage
at a future date.                                                                                             Liquidity
                                                                                                               Credit

INVESTMENT COMPANY SECURITIES: Shares of other mutual funds,                                    1-14           Market
including One Group money market funds and shares of other
investment companies for which Banc One Investment Advisors serves as investment
advisor or administrator. Banc One Investment Advisors will waive certain fees
when investing in funds for which it serves as investment advisor.
    

CONVERTIBLE SECURITIES: Bonds or preferred stock that convert to                                1-14           Market
common stock.                                                                                                  Credit

CALL AND PUT OPTIONS: A call option gives the buyer the right to                                1-14         Management
buy, and obligates the seller of the option to sell, a security                                               Liquidity
at a specified price. A put option gives the buyer the right to                                                Credit
sell, and obligates the seller of the option to buy, a security                                                Market
at a specified price. The Funds will sell only covered call and                                               Leverage
secured put options.

FUTURES AND RELATED OPTIONS: A contract providing for the future                                1-14         Management
sale and purchase of a specified amount of a specified security,                                               Market
class of securities, or an index at a specified time in the                                                    Credit
future and at a specified price.                                                                              Liquidity
                                                                                                              Leverage

REAL ESTATE INVESTMENT TRUSTS ("REITS"): Pooled investment                                      1-14          Liquidity
vehicles which invest primarily in income producing real estate                                              Management
or real estate related loans or interest.                                                                      Market
                                                                                                             Regulatory
                                                                                                                 Tax
                                                                                                             Pre-payment

BANKERS' ACCEPTANCES: Bills of exchange or time drafts drawn on                                 1-14           Credit
and accepted by a commercial bank. Maturities are generally six                                               Liquidity
months or less.                                                                                                Market

COMMERCIAL PAPER: Secured and unsecured short-term promissory                                   1-14           Credit
notes issued by corporations and other entities. Maturities                                                   Liquidity
generally vary from a few days to nine months.                                                                 Market

   
FOREIGN SECURITIES: Stocks issued by foreign companies, as well                           1-9 ,11-14           Market
as commercial paper of foreign issuers and obligations of                                                     Political
foreign banks, overseas branches of U.S. banks and supranational                                              Liquidity
entities. Includes American Depository Receipts.                                                              Foreign-
                                                                                                             Investment
    

RESTRICTED SECURITIES: Securities not registered under the                                      1-14          Liquidity
Securities Act of 1933, such as privately placed commercial                                                    Market
paper and Rule 144A securities.
</TABLE>



                                      101
<PAGE>   105



<TABLE>
<CAPTION>
   
INSTRUMENT                                                                                   FUND CODE        RISK TYPE
- ----------                                                                                   ---------        ---------
    

<S>                                                                                   <C>                     <C>
VARIABLE AND FLOATING RATE INSTRUMENTS: Obligations with                                         1-14          Credit
interest rates which are reset daily, weekly, quarterly or                                                    Liquidity
some other period and which may be payable to the Fund on demand.                                              Market

   
WARRANTS: Securities, typically issued with preferred stock or                        1-3, 5, 7, 9-14          Market
bonds, that give the holder the right to buy a proportionate                                                   Credit
amount of common stock at a specified price.
    

PREFERRED STOCK: A class of stock that generally pays a                                          1-14          Market
dividend at a specified rate and has preference over common
stock in the payment of dividends and in liquidation.

MORTGAGE-BACKED SECURITIES: Debt obligations secured by real                                  1,11-13        Pre-payment
estate loans and pools of loans. These include collateralized                                                  Market
mortgage obligations ("CMOs"), Real Estate Mortgage Investment                                                 Credit
Conduits ("REMICs") and Stripped Mortgage-Backed Securities                                                  Regulatory
("SMBS").

CORPORATE DEBT SECURITIES: Corporate bonds and non-convertible                                      1          Market
debt securities.                                                                                               Credit

DEMAND FEATURES: Securities that are subject to puts and standby                                    1          Market
commitments to purchase the securities at a fixed price (usually                                              Liquidity
with accrued interest) within a fixed period of time following                                               Management
demand by a Fund.

   
ASSET-BACKED SECURITIES: Securities secured by company                                        1,11-13        Pre-payment
receivables, home equity loans, truck and auto loans, leases,                                                  Market
credit card receivables and other securities backed by other                                                   Credit
types of receivables or other assets.                                                                        Regulatory
    

MORTGAGE DOLLAR ROLLS: A transaction in which a Fund sells                                    1,11-13        Pre-payment
securities for delivery in a current month and simultaneously                                                  Market
contracts with the same party to repurchase similar but not                                                  Regulatory
identical securities on a specified future date.

ADJUSTABLE RATE MORTGAGE LOANS ("ARMS"): Loans in a mortgage pool                                   1        Pre-payment
which provide for a fixed initial mortgage interest rate for a                                                 Market
specified period of time, after which the rate may be subject to                                               Credit
periodic adjustments.                                                                                        Regulatory

SWAPS, CAPS AND FLOORS: A Fund may enter into these transactions                                 1-14        Management
to manage its exposure to changing interest rates and other                                                    Credit
factors. Swaps involve an exchange of obligations by two parties.                                             Liquidity
Caps and floors entitle a purchaser to a principal amount from                                                 Market
the seller of the cap or floor to the extent that a specified
index exceeds or falls below a predetermined interest rate
or amount.

NEW FINANCIAL PRODUCTS: New options and futures contracts and                                    1-14        Management
other financial products continue to be developed and the Funds                                                Credit
may invest in such options, contracts and products.                                                            Market
                                                                                                              Liquidity
</TABLE>


                                      102
<PAGE>   106



<TABLE>
<CAPTION>
   
INSTRUMENT                                                                                   FUND CODE        RISK TYPE
- ----------                                                                                   ---------        ---------
    

<S>                                                                                    <C>                   <C>
STRUCTURED INSTRUMENTS: Debt securities issued by agencies and                                     1           Market
instrumentalities of the U.S. government, banks, municipalities,                                              Liquidity
corporations and other businesses whose interest and/or                                                      Management
principal payments are indexed to foreign currency exchange                                                    Credit
rates, interest rates, or one or more other referenced indices.                                               Foreign-
                                                                                                             Investment

   
MUNICIPAL SECURITIES: Securities issued by a state or political                                    1           Market
subdivision to obtain funds for various public purposes.                                                       Credit
Municipal securities include private activity bonds and                                                       Political
industrial development bonds, as well as General Obligation                                                      Tax
Notes, Tax Anticipation Notes, Bond Anticipation Notes, Revenue                                              Regulatory
Anticipation Notes, Project Notes, other short-term tax-exempt
obligations, municipal leases, and obligations of municipal housing authorities
and single family revenue bonds.
    

   
OBLIGATIONS OF SUPRANATIONAL AGENCIES: Obligations of                                        5,11-13           Credit
supranational agencies who are chartered to promote economic                                                  Foreign-
development and are supported by various governments and                                                     Investment
governmental agencies.
    

   
CURRENCY FUTURES AND RELATED OPTIONS: The Funds may engage in                                   5,13         Management
transactions in financial futures and related options, which are                                              Liquidity
generally described above. The Funds will enter into these                                                     Credit
transactions in foreign currencies for hedging purposes only.                                                  Market
                                                                                                              Political
                                                                                                              Leverage
                                                                                                              Foreign-
                                                                                                             Investment
    

   
FORWARD FOREIGN EXCHANGE TRANSACTIONS: Contractual agreement to                                 5,13         Management
purchase or sell one specified currency for another currency at a                                             Liquidity
specified future date and price. The Funds will enter into                                                     Credit
forward foreign exchange transactions for hedging purposes only.                                               Market
                                                                                                              Political
                                                                                                              Leverage
                                                                                                              Foreign-
                                                                                                             Investment
    

   
STANDARD & POOR'S DEPOSITORY RECEIPTS ("SPDRs"): SPDRs represent                       1-4, 6-10, 14           Market
ownership in a long-term unit investment trust that holds a
portfolio common stocks designed to track the price performance
and dividend yield of the S&P 500 Index. A SPDR entitles a holder
to receive proportionate quarterly cash distributions
corresponding to the dividends that accrue to the S&P 500 Index
stocks in the underlying portfolio, less trust expenses.

ZERO COUPON DEBT SECURITIES. Bonds and other debt that pay no                                  11-13           Credit
interest, but are issued at a discount from their value at                                                     Market 
maturity. When held to maturity, their entire return equals the                                              Zero-Coupon
difference between their issue price and their maturity value.
    
</TABLE>



                                      103
<PAGE>   107


INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities held by the Funds may fluctuate, as will the value of
your investment in the Funds. Certain investments are more susceptible to these
risk than others.

   
- -    CREDIT RISK. The risk that the issuer of a security, or the counterparty to
     a contract, will default or otherwise become unable to honor a financial
     obligation. Credit risk is generally higher for non-investment grade
     securities. The price and liquidity of a security can be adversely affected
     prior to actual default as its credit status deteriorates and the
     probability of default rises.
    

- -    LEVERAGE RISK. The risk associated with securities or practices that
     multiply small index or market movements into large changes in value.
     Leverage is often associated with investments in derivatives, but also may
     be embedded directly in the characteristics of other securities.

     -   HEDGED. When a derivative (a security whose value is based on another
         security or index) is used as a hedge against an opposite position that
         the fund also holds, any loss generated by the derivative should be
         substantially offset by gains on the hedged investment, and vice versa.
         While hedging can reduce or eliminate losses, it can also reduce or
         eliminate gains. Hedges are sometimes subject to imperfect matching
         between the derivative and underlying security, and there can be no
         assurance that a Fund's hedging transactions will be effective.

     -   SPECULATIVE. To the extent that a derivative is not used as a hedge,
         the fund is directly exposed to the risks of that derivative. Gains or
         losses from speculative positions in a derivative may be substantially
         greater than the derivative's original cost.

- -    LIQUIDITY RISK. The risk that certain securities may be difficult or
     impossible to sell at the time and the price that would normally prevail in
     the market. The seller may have to lower the price, sell other securities
     instead or forego an investment opportunity, any of which could have a
     negative effect on fund management or performance. This includes the risk
     of missing out on an investment opportunity because the assets necessary to
     take advantage of it are tied up in less advantageous investments.

- -    MANAGEMENT RISK. The risk that a strategy used by a fund's management may
     fail to produce the intended result. This includes the risk that changes in
     the value of a hedging instrument will not match those of the asset being
     hedged. Incomplete matching can result in unanticipated risks.

- -    MARKET RISK. The risk that the market value of a security may move up and
     down, sometimes rapidly and unpredictably. These fluctuations may cause a
     security to be worth less than the price originally paid for it, or less
     than it was worth at an earlier time. Market risk may affect a single
     issuer, industry, sector of the economy or the market as a whole. There is
     also the risk that the current interest rate may not accurately reflect
     existing market rates. For fixed income securities, market risk is largely,
     but not exclusively, influenced by changes in interest rates. A rise in
     interest rates typically causes a fall in values, while a fall in rates
     typically causes a rise in values. Finally, key information about a
     security or market may be inaccurate or unavailable. This is particularly
     relevant to investments in foreign securities.

- -    POLITICAL RISK. The risk of losses attributable to unfavorable governmental
     or political actions, seizure of foreign deposits, changes in tax or trade
     statutes, and governmental collapse and war.

- -    FOREIGN INVESTMENT RISK. The risk associated with higher transaction costs,
     delayed settlements, currency controls and adverse economic developments.
     This also includes the risk that fluctuations in the exchange rates between
     the U.S. dollar and foreign currencies may negatively affect an investment.
     Adverse changes in exchange rates may erode or reverse any gains produced
     by foreign currency denominated investments and may widen any losses.
     Exchange rate volatility also my affect the ability of an issuer to repay
     U.S. dollar denominated debt, thereby increasing credit risk.

- -    PRE-PAYMENT RISK. The risk that the principal repayment of a security will
     occur at an unexpected time, especially that the repayment of a mortgage or
     asset-backed security occurs either significantly sooner or later than
     expected. Changes in pre-payment rates can result in greater price and
     yield volatility. Pre-payments generally accelerate when interest rates
     decline. When mortgage and other obligations are pre-paid, a Fund may have
     to reinvest in securities with a lower yield. Further, with early
     prepayment, a Fund may fail to recover any premium paid, resulting in an
     unexpected capital loss.

- -    TAX RISK. The risk that the issuer of the securities will fail to comply
     with certain requirements of the Internal Revenue Code, which would cause
     adverse tax consequences.
   

- -    REGULATORY RISK. The risk associated with Federal and state laws which may
     restrict the remedies that a lender has when a borrower defaults on loans.
     These laws include restrictions on foreclosures, redemption rights after
    


                                      104
<PAGE>   108


     foreclosure, Federal and state bankruptcy and debtor relief laws,
     restrictions on "due on sale" clauses, and state usury laws.

INVESTMENT POLICIES

Each Fund's investment objective and the investment policies summarized below
are fundamental. This means that they cannot be changed without the consent of a
majority of the outstanding shares of the Funds. The full text of the
fundamental policies can be found in the Statement of Additional Information.

Each Fund may not:

1.       Purchase an issuer's securities if as a result more than 5% of its
         total assets would be invested in the securities of that issuer or the
         Fund would own more than 10% of the outstanding voting securities of
         that issuer. This does not include securities issued or guaranteed by
         the United States, its agencies or instrumentalities, and repurchase
         agreements involving these securities. This restriction applies with
         respect to 75% of a Fund's total assets.

2.       Concentrate its investments in the securities of one or more issuers
         conducting their principal business in a particular industry or group
         of industries. This does not include obligations issued or guaranteed
         by the U.S. government or its agencies and instrumentalities and
         repurchase agreements involving such securities.

3.       Make loans, except that a Fund may (i) purchase or hold debt
         instruments in accordance with its investment objective and policies;
         (ii) enter into repurchase agreements; and (iii) engage in securities
         lending.

   
One Group Equity Index Fund may not:
    

1.       Invest more than 10% of its total assets in securities issued or 
         guaranteed by the United States, its agencies or instrumentalities.

Additional investment policies can be found in the Statement of Additional
Information.

TEMPORARY DEFENSIVE POSITION

Sometimes Banc One Investment Advisors or the Sub-Advisor decides that the Funds
should temporarily be invested in cash and cash equivalents. Cash equivalents
include:

- -    Securities issued by the U.S. Government, its agencies and
     instrumentalities

- -    Repurchase Agreements

- -    Certificates of Deposit

- -    Bankers' Acceptances

- -    Commercial Paper (rated in one of the two highest rating categories)

- -    Variable Rate Master Demand Notes

- -    Bank Money Market Deposit Accounts

   
The Balanced Fund, the Large Cap Growth Fund, the Large Cap Value Fund, the Mid
Cap Value Fund, the Equity Income Fund, the Mid Cap Growth Fund, the Diversified
Equity Fund, and the Small Cap Growth Fund may temporarily invest up to 100% of
their total assets in cash and cash equivalents. The International Equity Index
Fund and Equity Index Fund may temporarily invest only 10% of their total assets
in cash and cash equivalents, while the Small Cap Value Fund, the Diversified
Mid Cap Fund and the Diversified International Fund may invest up to 20% of
their total assets in cash and cash equivalents. The International Equity Index
Fund may invest up to 20% of its total assets in debt securities issued or
guaranteed by foreign governments or any of their political subdivisions,
agencies or instrumentalities, or by supranational issuers rated in one of the
three highest rating categories.
    

While the Funds are engaged in a temporary defensive position, they will not be
pursuing their investment objectives. Therefore, the Funds will pursue a
temporary defensive position only when market conditions warrant.
   

    

                                      105
<PAGE>   109


   
PORTFOLIO TURNOVER
    

Portfolio turnover may vary greatly from year to year, as well as within a
particular year.

Higher portfolio turnover rates will likely result in higher transaction costs
to the Funds and may result in additional tax consequences to you. The portfolio
turnover rate for each Fund for the fiscal year ended June 30, 1998 is shown on
the Financial Highlights. To the extent portfolio turn over results in
short-term capital gains, such gains will generally be taxed at ordinary income
tax rates.



                                      106
<PAGE>   110


APPENDIX

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors determines that such securities are the equivalent
of investment grade securities. Securities that have received different ratings
from more than one agency are considered investment grade if at least one agency
has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

         D-1+     Highest certainty of timely payment. Short-term liquidity,
                  including internal operating factors and/or access to
                  alternative sources of funds, is outstanding and safety is
                  just below risk-free U.S. Treasury obligations

         D-1      Very high certainty of timely payment. Liquidity factors are 
                  excellent and supported by good fundamental protection 
                  factors. Risk factors are minor

         D-1-     High certainty of timely payment. Liquidity factors are strong
                  and supported by good fundamental protection factors. Risk 
                  factors are very small

STANDARD & POOR'S CORPORATION ("S&P")

         A-1      Highest category of commercial paper. Capacity to meet
                  financial commitment is strong. Obligations designated with a
                  plus sign (+) indicate that capacity to meet financial
                  commitment is extremely strong

         A-2      Issues somewhat more susceptible to adverse effects of changes
                  in circumstances and economic conditions than obligations in
                  higher rating categories. However, the capacity to meet
                  financial commitments is satisfactory

FITCH'S IBCA INC. ("FITCH")

         F1       Highest capacity for timely repayment. Those issues rated F1+
                  possess a particularly strong credit feature.

         F2       Satisfactory capacity for timely repayment although such 
                  capacity may be susceptible to adverse changes in business, 
                  economic or financial conditions.

MOODY'S INVESTORS SERVICE ("MOODY'S")

   PRIME-1        Superior ability for repayment.

   PRIME-2        Strong ability for repayment.



                                      107
<PAGE>   111


DESCRIPTION OF BANK RATINGS

MOODY'S

These ratings represent Moody's opinion of a bank's intrinsic safety and
soundness.

         A        These banks possess exceptional intrinsic financial strength.
                  Typically they will be major financial institutions with
                  highly valuable and defensible business franchises, strong
                  financial fundamentals, and a very attractive and stable
                  operating environment.

         B        These banks possess strong intrinsic financial strength.
                  Typically, they will be important institutions with valuable
                  and defensible business franchises, good financial
                  fundamentals, and an attractive and stable operating
                  environment.

         C        These banks possess good intrinsic financial strength.
                  Typically, they will be institutions with valuable and
                  defensible business franchises. These banks will demonstrate
                  either acceptable financial fundamentals within a stable
                  operating environment, or better than average financial
                  fundamentals within an unstable operating environment.

S&P

S&P's credit rating is a current opinion of an obligor's overall financial
capacity (its creditworthiness) to pay its financial obligation.

         Aaa      The highest rating assigned by S&P. The obligor's capacity to 
                  meet its financial commitment on the obligation is extremely 
                  strong.

         Aa       The obligor's capacity to meet its financial commitments on 
                  the obligation is very strong.

         A        The obligation is somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than obligations in higher rated categories. However, the
                  obligor's capacity to meet its financial commitment on the
                  obligation is still strong.

DESCRIPTION OF INSURANCE RATINGS

MOODY'S

These ratings represent Moody's opinions of the ability of insurance companies
to pay punctually senior policyholder claims and obligations.

         Aaa      Insurance companies rated in this category offer exceptional
                  financial security. While the financial strength of these
                  companies is likely to change, such changes as can be
                  visualized are most unlikely to impair their fundamentally
                  strong position.

         Aa       These insurance companies offer excellent financial security.
                  Together with the Aaa group, they constitute what are
                  generally known as high grade companies. They are rated lower
                  than Aaa companies because long-term risks appear somewhat
                  larger.

         A        Insurance companies rated in this category offer good
                  financial security. However, elements may be present which
                  suggest a susceptibility to impairment sometime in the future.



                                      108
<PAGE>   112


S&P

S&P's credit rating is a current opinion of the creditworthiness of an obligor
with respect to a specific financial obligation, a specific class of financial
obligations, or a specific financial program.

         AAA      This is the highest rating assigned by S&P. The obligor's 
                  capacity to meet its financial commitment on the obligation is
                  extremely strong.

         AA       The obligor's capacity to meet its financial commitments on 
                  the obligation is very strong.

         A        An obligation rated A is somewhat more susceptible to the
                  adverse effects of changes in circumstances and economic
                  conditions than obligations in higher rated categories.
                  However, the obligor's capacity to meet its financial
                  commitment on the obligation is still strong.

DESCRIPTION OF CORPORATE/MUNICIPAL BOND RATINGS

S&P

Investment Grade

         AAA      The highest rating. The rating indicates an extremely strong
                  capacity to meet its financial commitment.

         AA       Differs from AAA issues only in a small degree. The obligor's
                  capacity to meet its financial commitment is very strong.

         A        These bonds are somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than debt in higher rated categories. However, capacity to
                  meet its financial commitment on the obligation is still
                  strong.

         BBB      Exhibits adequate protection parameters. However, adverse
                  economic conditions or changing circumstances are more likely
                  to lead to a weakened capacity to meet its financial
                  commitment on the obligation.

   
Non-Investment Grade
    

         BB       Less vulnerable to non-payment than other speculative issues.
                  However, these bonds face major ongoing uncertainties or
                  exposure to adverse business, financial or economic conditions
                  which could lead to inadequate capacity to meet financial
                  commitment on the obligation

         B        More vulnerable to non-payment than obligations rated BB, but
                  currently has the capacity to meet its financial commitment on
                  the obligation. Adverse business, financial or economic
                  conditions will likely impair capacity or willingness to meet
                  its financial commitment on the obligation

         CCC      Currently vulnerable to non-payment, and is dependent upon
                  favorable business, financial, and economic conditions to meet
                  its financial commitment on the obligation. In the event of
                  adverse business, financial, or economic conditions, they are
                  not likely to have the capacity to meet its financial
                  commitment on the obligation

         CC       Currently highly vulnerable to non-payment

         C        This rating may be used to cover a situation where a
                  bankruptcy petition has been filed, or similar action has been
                  taken, but payments on this obligation are being continued

         D        Bonds in payment default

Ratings from AA to CCC may be modified by a plus (+) or minus (-) to show
relative standing within the major rating categories.

MOODY'S

Investment Grade

         Aaa      Best quality. They carry the smallest degree of investment
                  risk and are generally referred to as "gilt edged." 


                                      109
<PAGE>   113


                  Interest payments are protected by a large, or an 
                  exceptionally stable, margin and principal is secure.

         Aa       High quality by all standards. Margins of protection may not
                  be as large as in Aaa securities, fluctuation of protective
                  elements may be greater, or there may be other elements
                  present that make the long-term risks appear somewhat larger
                  than in Aaa securities.

         A        These bonds possess many favorable investment attributes and
                  are to be considered as upper-medium grade obligations.
                  Factors giving security to principal and interest are
                  considered adequate, but elements may be present which suggest
                  a susceptibility to impairment sometime in the future.

         Baa      These bonds are considered medium-grade obligations (i.e.,
                  they are neither highly protected nor poorly secured).
                  Interest payments and principal security appear adequate for
                  the present but certain protective elements may be lacking or
                  may be characteristically unreliable over any great length of
                  time. Such bonds lack outstanding investment characteristics
                  and in fact have speculative characteristics as well.

Non-Investment Grade

         Ba       These bonds have speculative elements; their future cannot be
                  considered as well assured. The protection of interest and
                  principal payments may be very moderate and thereby not well
                  safeguarded during good and bad times over the future.

         B        These bonds lack the characteristics of a desirable investment
                  (i.e., potentially low assurance of timely interest and
                  principal payments or maintenance of other contract terms over
                  any long period of time may be small).

         Caa      Bonds in this category have poor standing and may be in
                  default. These bonds carry an element of danger with respect
                  to principal and interest payments.

         Ca       Speculative to a high degree and could be in default or have
                  other marked shortcomings. Ca is the lowest rating.



                                      110
<PAGE>   114


DESCRIPTION OF MUNICIPAL NOTE RATINGS

MOODY'S

MIG1 &
 VMIG1            Short-term municipal securities rated MIG1 or VMIG1 are of the
                  best quality. They have strong protection from established
                  cash flows, superior liquidity support or demonstrated
                  broad-based access to the market for refinancing.

MIG2 &
 VMIG2            These Short-term municipal securities are of high quality.
                  Margins of protection are ample although not so large as in
                  the preceding group.

MIG3 &
 VMIG3            Favorable quality. All security elements are accounted for,
                  but the undeniable strength of the preceding grades is
                  lacking. Liquidity and cash flow protection may be narrow and
                  marketing access for refinancing is likely to be less well
                  established.

S&P

An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in three years or less will likely receive a note
rating. Notes maturing beyond three years will most likely receive a long-term
debt rating.

         SP-1     Strong capacity to pay principal and interest. Those issues
                  determined to possess overwhelming safety characteristics will
                  be given a plus (+) designation.

         SP-2     Satisfactory capacity to pay principal and interest.

         SP-3     Speculative capacity to pay principal and interest.

DESCRIPTION OF PREFERRED STOCK RATINGS

MOODY'S

         aaa      Top-quality preferred stock. This rating indicates good asset
                  protection and the least risk of dividend impairment within
                  the universe of preferred stocks.

         aa       High-grade preferred stock. This rating indicates that there
                  is a reasonable assurance the earnings and asset protection
                  will remain relatively well maintained in the foreseeable
                  future.

         a        Upper-medium grade preferred stock. While risks are judged to
                  be somewhat greater than in the "aaa" and "aa" classification,
                  earnings and asset protection are, nevertheless, expected to
                  be maintained at adequate levels.

         baa      Medium-grade preferred stock, neither highly protected nor
                  poorly secured. Earnings and asset protection appear adequate
                  at present but may be questionable over any great length of
                  time.



                                      111
<PAGE>   115


S&P

S&P's preferred stock rating is an assessment of the capacity and willingness of
an issuer to pay preferred stock dividends and any applicable sinking fund
obligations.

         AAA      Highest rating. This rating indicates an extremely strong
                  capacity to pay the preferred stock obligations.

         AA       High-quality, fixed-income security. The capacity to pay
                  preferred stock obligations is very strong, although not as
                  overwhelming as for issues rated "AAA."

         A        Backed by a sound capacity to pay the preferred stock
                  obligations, although it is somewhat more susceptible to the
                  adverse effects of changes in circumstances and economic
                  conditions.

         BBB      Backed by an adequate capacity to pay the preferred stock
                  obligations. Whereas the issuer normally exhibits adequate
                  protection parameters, adverse economic conditions or changing
                  circumstances are more likely to lead to a weakened capacity
                  to make payments for a preferred stock in this category than
                  for issues in the "A" category.

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") assigns ratings to specific debt instruments
with original maturities of one year or less. The TBW Short-Term ratings
specifically assess the likelihood of an untimely payment of principal and
interest.

         TBW-1    Very high degree of likelihood that principal and interest
                  will be paid on a timely basis

         TBW-2    While degree of safety regarding timely repayment of principal
                  and interest is strong, the relative degree is not as high as
                  for issues rated TBW-1.

         TBW-3    Lowest investment grade category. While more susceptible to
                  adverse developments than obligations with higher ratings,
                  capacity to service principal and interest in a timely fashion
                  is considered adequate

         TBW-4    Non-investment grade and, therefore, speculative



                                      112
<PAGE>   116



   
Investment Advisor and Sub-Administrator
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Sub-Advisor
Independence International Associates, Inc.
53 State Street
Boston, MA  02109

Distributor
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Administrator
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Transfer Agent and Custodian
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

Legal Counsel
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

Independent Accountants
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
    
   

THE STATEMENT OF ADDITIONAL INFORMATION CONTAINS MORE DETAILED INFORMATION ABOUT
THE FUNDS. THE CURRENT STATEMENT OF ADDITIONAL INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY
CALLING 1-800-480-4111 OR BY WRITING TO THE ONE GROUP SERVICES COMPANY AT 3435
STELZER ROAD, COLUMBUS, OHIO 43219. THE STATEMENT OF ADDITIONAL INFORMATION IS
INCORPORATED INTO THIS PROSPECTUS BY REFERENCE. THE SEC MAINTAINS A WEB SITE
(WWW.SEC.GOV) THAT CONTAINS THE STATEMENT OF ADDITIONAL INFORMATION, MATERIALS
INCORPORATED BY REFERENCE AND OTHER INFORMATION REGARDING ONE GROUP(R).
    


                                      113


<PAGE>   117
   

                           ONE GROUP(R) MUTUAL FUNDS
    

                                   BOND FUNDS

                               COMBINED PROSPECTUS

   
                                  MARCH , 1999

                      ONE GROUP(R) INTERMEDIATE BOND FUND

                         ONE GROUP(R) INCOME BOND FUND

                       ONE GROUP(R) GOVERNMENT BOND FUND

                    ONE GROUP(R) ULTRA SHORT-TERM BOND FUND

                       ONE GROUP(R) SHORT-TERM BOND FUND

                      ONE GROUP(R) TREASURY & AGENCY FUND

                       ONE GROUP(R) HIGH YIELD BOND FUND

                            ONE GROUP(R) BOND FUND

             This prospectus describes eight funds with a variety of
         investment objectives, including current income, total return,
             capital preservation, state tax-exempt income, and low
                volatility. The information in this prospectus is
                                   important.
    
                       Please read it carefully before you
                             invest, and save it for
                                future reference.

         PLEASE REMEMBER THAT SHARES OF THE FUNDS: O ARE NOT DEPOSITS OR
   OBLIGATIONS OF, OR GUARANTEED BY BANK ONE CORPORATION OR ITS AFFILIATES; O
  ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
     BY ANY FEDERAL OR STATE GOVERNMENTAL AGENCY; O INVOLVE INVESTMENT RISK,
               INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
                                    INVESTED.

          THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
    SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE
   ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
                                  IS A CRIMINAL
                                    OFFENSE.




<PAGE>   118

   
<TABLE>
<CAPTION>
TABLE OF CONTENTS

<S>                                                                                 <C>
A BRIEF PREVIEW OF THE FUNDS                                                           1
ABOUT THE FUNDS                                                                        2
  One Group(R) Intermediate Bond Fund                                                  3
  One Group(R) Income Bond Fund                                                       10
  One Group(R) Government Bond Fund                                                   16
  One Group(R) Ultra Short-Term Bond Fund                                             22
  One Group(R) Short-Term Bond Fund                                                   28
  One Group(R) Treasury & Agency Fund                                                 34
  One Group(R) High Yield Bond Fund                                                   40
  One Group(R) Bond Fund                                                              43
MORE ABOUT THE FUNDS                                                                  46

HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS                                    49
  Purchasing Fund Shares                                                              49
  Sales Charges                                                                       52
  Sales Charge Reductions and Waivers                                                 55
  Exchanging Fund Shares                                                              57
  Redeeming Fund Shares                                                               59

SHAREHOLDER 
INFORMATION                                                                           63
  Voting Rights                                                                       63
  Dividend Policies                                                                   65
  Tax Treatment of the Funds                                                          65
  Tax Treatment of Shareholders                                                       65
  Shareholder Inquiries                                                               66

ORGANIZATION AND MANAGEMENT OF THE FUNDS                                              66
  The Funds                                                                           66
  The Board of Trustees                                                               66
  The Advisor                                                                         67
  The Sub-Advisor                                                                     67
  Banc One High Yield Partners--Prior Performance of Pacholder
    Associates, Inc.                                                                  67
  The Distributor                                                                     69
  The Administrator and Sub-Administrator                                             70
  The Transfer Agent, Custodian and Sub-Custodian                                     70
  Year 2000                                                                           70

DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES                            71
  Investment Practices                                                                71
  Investment Risks                                                                    76
  Investment Policies                                                                 77

APPENDIX: DESCRIPTION OF RATINGS                                                      79
</TABLE>
    

                                       2

<PAGE>   119


A BRIEF PREVIEW OF THE FUNDS


   
WHAT ARE THE GOALS OF ONE GROUP BOND FUNDS?
    

The Funds are designed for a variety of investment objectives, including:

                -  current income

   
                -  total return
    

                -  current income consistent with the preservation of capital

                -  current income with a primary focus on income that is exempt
                   from state income taxes

                -  current income consistent with low volatility of principal.

Each Fund pursues a different objective and involves different risks. Please
read about each Fund before investing.

WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?

   
The Intermediate Bond Fund, the Short-Term Bond Fund, the Ultra Short-Term Bond
Fund, the Income Bond Fund, and the Bond Fund invest in high and medium grade
debt securities of all types with average maturities ranging from one to twenty
years. The Income Bond Fund and the High Yield Bond Fund also may invest in
lower grade debt securities, although the Income Bond Fund will limit its
investments in such securities to no more than 30% of its total assets. The
Government Bond Fund and the Treasury & Agency Fund invest in obligations issued
or guaranteed by the U.S. government, its agencies and instrumentalities.
Several of the Funds may invest in preferred stock. The Funds also may lend
their portfolio securities.
    

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?

   
The Funds invest in fixed income investments that are subject to market
fluctuations as a result of changes in interest rates. As a result, the value of
investments in the Funds may decrease during periods of rising interest rates
and increase during periods of declining interest rates. In addition, some of
the Funds invest in mortgage-related securities which have significantly greater
price and yield volatility than traditional fixed income securities. Fixed
income securities also are subject to the risk that the issuer of the security
will be unable to meet its payment obligation. Also, the Income Bond Fund and
the High Yield Bond Fund may invest in securities in ANY rating category, some
of which are regarded as predominately speculative. An investment in the Funds
is not a deposit of BANK ONE CORPORATION or its affiliates and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. For more information about risks, please read "More About the Funds" and
"Investment Risks."
    

WHAT CLASSES OF SHARES ARE AVAILABLE?

   
The Funds currently offer four classes of Shares: Class A, Class B, Class C and
Class I. Class A, Class B and Class C shares are offered to the general public.
Class I shares are offered to institutional investors, including affiliates of
BANK ONE CORPORATION and any bank, depository institution, insurance company,
pension plan or other organization authorized to act in fiduciary, advisory,
agency, custodial or similar capacities. Class I shares are not available to
Individual Retirement Accounts ("IRA"). Class C shares are not available for
purchase in all of the Funds. The section called "How To Do Business With The
One Group Mutual Funds" will provide more information.
    

HOW DO I PURCHASE AND REDEEM SHARES?

   
You may buy and redeem shares of the Funds on any day that the Funds are open
for business. Purchase and redemption procedures are explained in greater detail
in "How To Do Business With The One Group Mutual Funds." For additional
information, call The One Group Services Company at 1-800-480-4111.
    

                                       1
<PAGE>   120



HOW ARE DIVIDENDS PAID?

Generally, dividends are declared on each business day and are distributed on
the first business day of each month. Any capital gains are distributed at least
annually. Distributions are paid in additional shares of the same class unless
you elect to take the payment in cash. For a more detailed discussion of
dividends, see "Dividend Policies."

WHO MANAGES THE FUNDS?

Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Funds.
Banc One Investment Advisors is paid a fee for its services. Banc One High Yield
Partners, LLC (the "Sub-Advisor") serves as Sub-Advisor to the High Yield Bond
Fund. The Sub-Advisor's fees are paid by Banc One Investment Advisors. A more
detailed discussion regarding Banc One Investment Advisors, its services and
compensation can be found in the Prospectus under the headings "The Advisor" and
"Expense Summary." Additional information regarding the Sub-Advisor is located
in the Prospectus under the heading "The Sub-Advisor."

                                       2
<PAGE>   121


   
ONE GROUP(R)
    

INTERMEDIATE BOND FUND

INVESTMENT OBJECTIVE

   
The Fund seeks current income consistent with the preservation of capital by
investing in high and medium-grade fixed income securities with intermediate
maturities.
    

INVESTMENT STRATEGY

   
Generally, the Fund invests in debt securities of all types including bonds,
notes, U.S. government obligations, and taxable and tax-exempt municipal
securities rated as investment grade at the time of investment, (or, if unrated,
determined by Banc One Investment Advisors, to be of comparable quality). The
Fund's average weighted maturity will ordinarily range between three and ten
years, taking into account expected prepayment of principal on certain
investments, although the Fund may shorten the weighted average maturity to as
little as one year for temporary defensive purposes.
    

PORTFOLIO SECURITIES

   
The Fund normally invests at least 80% of its total assets in debt securities.
Debt securities include bonds, notes and other obligations. As a matter of
fundamental policy, at least 65% of the Fund's total assets will consist of
bonds and at least 50% of total assets will consist of obligations issued by the
U.S. government or its agencies and instrumentalities, some of which may be
subject to repurchase agreements. Up to 20% of the Fund's total assets may be
invested in preferred stock. For a list of all the securities in which the Fund
may invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

   
The Fund may invest in debt securities that are rated in the lowest investment
grade category. Such investments are considered to have speculative
characteristics. In addition, the Fund invests in fixed income securities. The
value of these securities will change in response to interest rate changes and
other factors. This is especially true to the extent the Fund invests in debt
securities in the lowest investment grade category. The Fund also invests in
mortgage-related securities which may have greater price and yield volatility
than traditional fixed income securities. Before you invest, please read
"More About the Funds" and "Investment Risks."
    

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       3
<PAGE>   122

<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I

<S>                                                                 <C>           <C>            <C>             <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 4.50%           none          none           none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)          5.00%         1.00%           none
Redemption Fees                                                        none           none          none           none
Exchange Fees                                                          none           none          none           none

ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees (after fee
   
  waiver)(4)                                                           .36%           .36%          .36%           .36%
12b-1 Fees (after fee waiver)(5)                                       .25%           .90%          .90%           none
Other Expenses                                                         .22%           .22%          .22%           .22%
    Total Fund Operating Expenses
      (after fee waivers)(6)                                           .83%          1.48%         1.48%           .58%
    
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.17% for Class A shares, 1.82% for
         Class B shares, 1.82% for Class C shares and .82% for Class I shares.

                                       4
<PAGE>   123


EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

   
<S>                                                                     <C>            <C>          <C>             <C> 
Class A                                                                 $53            $70          $ 89            $143
Class A (without fee waivers)                                           $56            $80          $106            $181
Class B                                                                 $65            $77          $101            $159
Class B (without fee waivers)                                           $68            $87          $119            $197
Class C                                                                 $25            $47          $ 81            $177
Class C (without fee waivers)                                           $28            $57          $ 99            $214
Class I                                                                 $ 6            $19          $ 32            $ 73
Class I (without fee waiver)                                            $ 8            $26          $ 46            $101
    
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
   
<S>                                                                     <C>            <C>          <C>             <C> 
Class A                                                                 $53            $70          $ 89            $143
Class A (without fee waivers)                                           $56            $80          $106            $181
Class B                                                                 $15            $47          $ 81            $159
Class B (without fee waivers)                                           $18            $57          $ 99            $197
Class C                                                                 $15            $47          $ 81            $177
Class C (without fee waivers)                                           $18            $57          $ 99            $214
Class I                                                                 $ 6            $19          $ 32            $ 73
Class I (without fee waiver)                                            $ 8            $26          $ 46            $101
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       5
<PAGE>   124


   
ONE GROUP(R)  INTERMEDIATE BOND FUND  FINANCIAL HIGHLIGHTS
    

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by _____________________________ , whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
    


   
    
<PAGE>   125


   
 ONE GROUP(R) INTERMEDIATE BOND FUND FINANCIAL HIGHLIGHTS
    


   
    
<PAGE>   126


   
ONE GROUP(R) INCOME BOND FUND
    

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income by investing primarily in a
diversified portfolio of high, medium and low grade debt securities.

INVESTMENT STRATEGY

The Fund invests in all types of debt securities rated as investment grade or
below investment grade, as well as convertible securities, preferred stock, and
loan participations. The Fund's average weighted maturity will normally range
between five and twenty years, although the Fund may shorten its weighted
average to as little as two years if deemed appropriate for temporary defensive
purposes.

PORTFOLIO SECURITIES

The Fund invests at least 70% of its total assets in debt securities of all
types rated as investment grade at the time of investment or, if unrated,
determined to be of comparable quality by Banc One Investment Advisors. In
addition, up to 30% of the Fund's total assets may be invested in convertible
securities, preferred stock, loan participations and debt securities rated below
investment grade or, if unrated, determined by Banc One Investment Advisors to
be of comparable quality. Securities rated below investment grade are called
"high yield bonds," "non-investment grade bonds" and "junk bonds." These
securities generally are rated in the fifth or lower rating categories (for
example, BB or lower by Standard & Poor's Corporation and Ba or lower by Moody's
Investors Service, Inc.), and are considered to be speculative. Even though it
may invest in debt securities in all rating categories, the Fund will not invest
more than 20% of its total assets in securities rated below the fifth rating
category. As a matter of fundamental policy, at least 65% of the Fund's total
assets will consist of bonds. The Fund also may purchase taxable or tax-exempt
municipal securities. For a list of all the securities in which the Fund may
invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in debt securities rated below investment grade that are
considered speculative. While these securities generally provide a higher yield
than higher rated debt securities, they are subject to a greater degree of risk.
Issuers of these securities may include smaller, less creditworthy companies or
highly indebted firms. The credit quality of securities in the high yield bond
market can change suddenly and unexpectedly. Before you invest, please read
"More About the Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       10
<PAGE>   127


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I
<S>                                                                   <C>         <C>             <C>            <C>
Maximum Sales Charge Imposed on Purchases

  (as a percentage of offering price)                                 4.50%         none           none            none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)        5.00%          1.00%            none
Redemption Fees                                                        none         none           none            none
Exchange Fees                                                          none         none           none            none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees (after fee
   
  waiver)(4)                                                           .41%         .41%           .41%            .41%
12b-1 Fees (after fee waiver)(5)                                       .25%         .90%           .90%            none
Other Expenses                                                         .21%         .21%           .21%            .21%
Total Fund Operating Expenses (after fee
    
  waiver)(6)                                                           .87%        1.52%          1.52%            .62%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

   
(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.16% for Class A shares, 1.81% for
         Class B shares, 1.81% for Class C shares and .81% for Class I shares.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
   
<S>                                                                     <C>            <C>          <C>             <C> 
Class A                                                                 $53            $72          $ 91            $147
Class A (without fee waivers)                                           $56            $80          $106            $180
Class B                                                                 $65            $78          $103            $164
Class B (without fee waivers)                                           $68            $87          $118            $196
Class C                                                                 $25            $48          $ 83            $181
Class C (without fee waivers)                                           $28            $57          $ 99            $214
Class I                                                                 $ 6            $20          $ 35            $ 77
Class I (without fee waiver)                                            $ 8            $26          $ 45            $100
    
</TABLE>


                                       11
<PAGE>   128


Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

   
<S>                                                                     <C>            <C>          <C>             <C> 
Class A                                                                 $53            $72          $ 91            $147
Class A (without fee waivers)                                           $56            $80          $106            $180
Class B                                                                 $15            $48          $ 83            $164
Class B (without fee waivers)                                           $18            $57          $ 98            $196
Class C                                                                 $15            $48          $ 83            $181
Class C (without fee waivers)                                           $18            $57          $ 99            $214
Class I                                                                 $ 6            $20          $ 35            $ 77
Class I (without fee waiver)                                            $ 8            $26          $ 45            $100
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       12
<PAGE>   129


   
ONE GROUP(R) INCOME BOND FUND  FINANCIAL HIGHLIGHTS
    

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by ___________________________ , whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
    


   
    
<PAGE>   130


   
ONE GROUP(R) GOVERNMENT BOND FUND
    

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income with liquidity and safety of
principal.

INVESTMENT STRATEGY

   
The Fund limits its investments to securities issued by the U.S. government and
its agencies and instrumentalities or related to securities issued by the U.S.
government and its agencies and instrumentalities. The Fund's average weighted
maturity will ordinarily range between three and fifteen years, taking into
account expected prepayment of principal on certain investments. However, the
Fund's average weighted remaining maturity may be outside this range if
warranted by market conditions.
    

PORTFOLIO SECURITIES

   
At least 65% of the Fund's total assets will be invested in debt instruments
with principal and interest guaranteed by the U.S. government or its agencies
and instrumentalities, some of which may be subject to repurchase agreements,
and other securities representing an interest in or secured by mortgages that
are issued or guaranteed by certain U.S. government agencies or
instrumentalities. For a list of all the securities in which the Fund may
invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

   
The Fund's ability to achieve higher income is not as great as that of funds
that invest in lower-quality instruments. In addition, the Fund invests in fixed
income securities. The value of these securities will change in response to
interest rate changes and other factors. The Fund also invests in
mortgage-related securities which may have greater price and yield volatility
than traditional fixed income securities. Before you invest, please read "More
About the Funds" and "Investment Risks."
    

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       16
<PAGE>   131


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I

<S>                                                                   <C>         <C>            <C>            <C>  
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 4.50%         none           none            none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)        5.00%          1.00%            none
Redemption Fees                                                        none         none           none            none
Exchange Fees                                                          none         none           none            none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees                                               .45%         .45%           .45%            .45%
12b-1 Fees (after fee waiver)(4)                                       .25%         .90%           .90%            none
Other Expenses                                                         .24%         .24%           .24%            .24%
Total Fund Operating Expenses (after fee
  waiver)(5)                                                           .94%        1.59%          1.59%            .69%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(5)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be 1.04% for Class A shares and 1.69% for Class B shares and
         Class C shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
<S>                                                                     <C>            <C>          <C>             <C> 
Class A                                                                 $54            $74          $ 95            $155
Class A (without fee waiver)                                            $55            $77          $100            $166
Class B                                                                 $66            $80          $107            $172
Class B (without fee waiver)                                            $67            $83          $112            $183
Class C                                                                 $26            $50          $ 87            $189
Class C (without fee waiver)                                            $27            $53          $ 92            $200
Class I                                                                 $ 7            $22          $ 38            $ 86
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

                                       17
<PAGE>   132


<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

<S>                                                                     <C>            <C>          <C>             <C> 
Class A                                                                 $54            $74          $ 95            $155
Class A (without fee waiver)                                            $55            $77          $100            $166
Class B                                                                 $16            $50          $ 87            $172
Class B (without fee waiver)                                            $17            $53          $ 92            $183
Class C                                                                 $16            $50          $ 87            $189
Class C (without fee waiver)                                            $17            $53          $ 92            $200
Class I                                                                 $ 7            $22          $ 38            $ 86
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       18
<PAGE>   133


   
ONE GROUP(R) GOVERNMENT BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
                                                                                YEAR ENDED JUNE 30,
                                                                                -------------------
CLASS I                                              1998          1997         1996         1995        1994      1993(a)
- -------                                              ----          ----         ----         ----        ----      -------

<S>                                                 <C>         <C>         <C>          <C>          <C>           <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                $  9.69     $  9.56     $   9.81     $   9.35     $  10.15      $ 10.00
Investment Activities:
  Net investment income                                0.60        0.62         0.62         0.62         0.51         0.20
  Net realized and unrealized gains
    (losses) from investments and
    futures                                            0.42        0.13        (0.25)        0.46        (0.77)        0.15
Total from Investment Activities                       1.02        0.75         0.37         1.08        (0.26)        0.35
Distributions:
  Net investment income                               (0.60)      (0.62)       (0.62)       (0.61)       (0.50)       (0.20)
  In excess of net investment income                  --          --           --           (0.01)       (0.02)       --
  In excess of net realized gains                     --          --           --           --           (0.02)       --
Total Distributions                                   (0.60)      (0.62)       (0.62)       (0.62)       (0.54)       (0.20)
NET ASSET VALUE, END OF PERIOD                     $  10.11     $  9.69     $   9.56     $   9.81     $   9.35      $ 10.15
Total Return                                          10.81%       8.10%        3.81%       12.04%       (2.73)%       9.03%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                $851,517    $724,423     $677,326     $379,826     $209,692      $52,152
  Ratio of expenses to average net
    assets                                             0.62%       0.62%        0.68%        0.71%        0.68%        0.69%(b)
  Ratio of net investment income to
    average net assets                                 6.05%       6.45%        6.34%        6.65%        5.13%        5.43%(b)
  Ratio of expenses to average net
    assets*                                            0.67%       0.68%        0.69%        0.73%        0.71%        1.05%(b)
  Ratio of net investment income to
    average net assets*                                6.00%       6.39%        6.33%        6.63%        5.10%        5.07%(b)
  Portfolio Turnover(c)                               91.49%      60.53%       62.70%      106.14%      377.78%      139.24%
</TABLE>


*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)The Fund commenced offering on February 8, 1993.
         (b)Annualized. (c)Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued.

                                       19
<PAGE>   134


<TABLE>
<CAPTION>
                                                                                 YEAR ENDED JUNE 30,
                                                                                 -------------------
CLASS A                                             1998        1997          1996         1995         1994       1993(a)
- -------                                             ----        ----          ----         ----         ----       -------

<S>                                                 <C>         <C>          <C>           <C>         <C>           <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                $  9.69     $  9.56      $  9.81       $ 9.35      $ 10.17       $10.22
Investment Activities:
  Net investment income                                0.58        0.60         0.60         0.61         0.48         0.17
  Net realized and unrealized gains
    (losses) from investments and
    futures                                            0.42        0.13        (0.25)        0.45        (0.79)       (0.05)
Total from Investment Activities                       1.00        0.73         0.35         1.06        (0.31)        0.12
Distributions:
  Net investment income                               (0.58)      (0.60)       (0.60)       (0.59)       (0.47)       (0.17)
  In excess of net investment income                  --          --           --           (0.01)       (0.02)       --
  In excess of net realized gains                     --          --           --           --           (0.02)       --
Total Distributions                                   (0.58)      (0.60)       (0.60)       (0.60)       (0.51)       (0.17)
NET ASSET VALUE, END OF PERIOD                      $ 10.11     $  9.69      $  9.56       $ 9.81      $  9.35       $10.17
Total Return (Excludes Sales Charge)                  10.54%       7.83%        3.58%       11.84%       (3.16)%       5.35%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                 $31,548     $34,727      $38,800       $8,130       $1,690       $  840
  Ratio of expenses to average net
    assets                                             0.87%        0.87%        0.93%        0.97%        0.92%        0.95%(b)
  Ratio of net investment income to
    average net assets                                 5.80%       6.20%        6.09%        6.46%        4.84%        5.56%(b)
  Ratio of expenses to average net
    assets*                                            1.02%       1.03%        1.04%        1.09%        1.05%        1.44%(b)
  Ratio of net investment income to
    average net assets*                                5.65%       6.04%        5.98%        6.34%        4.71%        5.07%(b)
  Portfolio Turnover (c)                              91.49%      60.53%       62.70%      106.14%      377.78%      139.24%
</TABLE>


   
*       During the period certain fees were voluntarily reduced. If such
        voluntary fee reductions had not occurred, the ratios would have been
        as indicated. (a) Class A Shares commenced offering on March 5, 1993.
        (b) Annualized. (c) Portfolio turnover is calculated on the basis of the
        Fund as a whole without distinguishing among the classes of shares
        issued.
    

                                       20
<PAGE>   135


   
One Group(R) Government Bond Fund  Financial Highlights

<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
CLASS B                                              1998              1997           1996           1995             1994(a)
- -------                                              ----              ----           ----           ----             -------
<S>                                                <C>             <C>             <C>             <C>             <C>    
NET ASSET VALUE, BEGINNING OF PERIOD               $  9.69         $  9.56         $  9.81         $  9.35         $ 10.04
Investment Activities:
  Net investment income                               0.52            0.54            0.54            0.55            0.18
  Net realized and unrealized gains
    (losses) from investments and
    futures                                           0.42            0.13           (0.25)           0.46           (0.69)
Total from Investment Activities                      0.94            0.67            0.29            1.01           (0.51)
Distributions:
  Net investment income                              (0.52)          (0.54)          (0.54)          (0.55)          (0.16)
  In excess of net investment income                 --              --              --              --              (0.02)
Total Distributions                                  (0.52)          (0.54)          (0.54)          (0.55)          (0.18)
NET ASSET VALUE, END OF PERIOD                     $ 10.11         $  9.69         $  9.56         $  9.81         $  9.35
Total Return (Excludes Sales Charge)                  9.86%           7.14%           2.95%          11.20%          (4.99)%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                $20,922         $11,729         $10,782         $ 2,513         $   656
  Ratio of expenses to average net
    assets                                            1.52%           1.52%           1.58%           1.62%           1.52%(c)
  Ratio of net investment income to
    average net assets                                5.14%           5.55%           5.44%           5.76%           4.60%(c)
  Ratio of expenses to average net
    assets*                                           1.67%           1.68%           1.69%           1.74%           1.63%(c)
  Ratio of net investment income to
    average net assets*                               4.99%           5.39%           5.33%           5.64%           4.49%(c)
  Portfolio Turnover (d)                             91.49%          60.53%          62.70%         106.14%         377.78%
</TABLE>
    


*      During the period certain fees were voluntarily reduced. If such
       voluntary fee reductions had not occurred, the ratios would have been
       as indicated. (a) Class B Shares commenced offering on January 14, 1994.
       (b) Not annualized. (c) Annualized. (d) Portfolio turnover is calculated
       on the basis of the Fund as a whole without distinguishing among the
       classes of shares issued.

                                       21
<PAGE>   136


   
ONE GROUP(R) ULTRA SHORT-TERM BOND FUND
    

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income consistent with low volatility of
principal by investing in a diversified portfolio of short-term investment grade
securities.

INVESTMENT STRATEGY

   
The Fund invests in all types of debt securities, including money market
instruments, adjustable rate mortgage backed securities and taxable and
tax-exempt municipal securities. The Fund will maintain a maximum duration
approximately equal to that of a two-year U.S. Treasury security, although the
Fund's actual duration is expected to be approximately equal to that of a one
year U.S. Treasury security. This Fund was formerly called The One Group Ultra
Short-Term Income Fund.
    

PORTFOLIO SECURITIES

The Fund normally invests at least 80% of its total assets in debt securities.
In addition, up to 20% of the Fund's total assets may be invested in other
securities, including preferred stock. The Fund will invest in adjustable rate
mortgage pass-through securities and other securities representing an interest
in or secured by mortgages with periodic interest rate resets (some of which may
be subject to repurchase agreements). These securities often are issued or
guaranteed by the U.S. Government, its agencies or instrumentalities. However,
the Fund may also purchase mortgage-backed securities that are issued by
non-governmental entities. Such securities may or may not have private insurer
guarantees of timely payments. For a list of all the securities in which the
Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

   
The Fund invests in fixed income investments that are subject to market
fluctuations as a result of changes in interest rates. As a result, the value of
investments in the Fund may decrease during periods of rising interest rates. In
addition, the Fund invests in mortgage-related securities which may have greater
price and yield volatility than traditional fixed income securities. The Fund
also uses investment management hedging techniques that may expose the Fund to
special risks. Before you invest, please read "More About the Funds" and
"Investment Risks."
    

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       22
<PAGE>   137


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I
<S>                                                                  <C>          <C>            <C>              <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 3.00%         none            none           none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)        3.00%           1.00%           none
Redemption Fees                                                        none         none            none           none
Exchange Fees                                                          none         none            none           none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
  assets)
Investment Advisory Fees (after fee
  waiver)(4)                                                           .30%         .30%            .30%           .30%
12b-1 Fees (after fee waiver)(5)                                       .25%         .75%            .75%           none
Other Expenses                                                         .25%         .25%            .25%           .25%
Total Fund Operating Expenses
  (after fee waivers)(6)                                               .80%        1.30%           1.30%           .55%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .55% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.15% for Class A shares, 1.80% for
         Class B shares, 1.80% for Class C shares, and .80% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
<S>                                                                    <C>           <C>             <C>           <C> 
Class A                                                                $38           $55             $73           $126
Class A (without fee waivers)                                          $41           $65             $91           $166
Class B                                                                $43           $61             $71           $130
Class B (without fee waivers)                                          $48           $77             $97           $179
Class C                                                                $23           $41             $71           $157
Class C (without fee waivers)                                          $28           $57             $97           $212
Class I                                                                $ 6           $18             $31           $ 69
Class I (without fee waiver)                                           $ 8           $26             $44           $ 99
</TABLE>

                                       23
<PAGE>   138



Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

<S>                                                                    <C>           <C>             <C>           <C> 
Class A                                                                $38           $55             $73           $126
Class A (without fee waivers)                                          $41           $65             $91           $166
Class B                                                                $13           $41             $71           $130
Class B (without fee waivers)                                          $18           $57             $97           $179
Class C                                                                $13           $41             $71           $157
Class C (without fee waivers)                                          $18           $57             $97           $212
Class I                                                                $ 6           $18             $31           $ 69
Class I (without fee waiver)                                           $ 8           $26             $44           $ 99
</TABLE>

Class B shares automatically convert to Class A shares after six (6) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       24
<PAGE>   139


   
ONE GROUP(R) ULTRA SHORT-TERM BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
<TABLE>
<CAPTION>
                                                                                   YEAR ENDED JUNE 30,
                                                                                   -------------------
CLASS I                                              1998          1997         1996       1995         1994        1993(a)
- -------                                              ----          ----         ----       ----         ----        -------
<S>                                                <C>         <C>           <C>          <C>         <C>          <C>     
NET ASSET VALUE, BEGINNING OF PERIOD               $   9.87    $   9.79      $  9.84      $  9.85     $  10.03     $  10.00
Investment Activities:
  Net investment income                                0.59        0.62         0.62         0.55         0.36         0.17
  Net realized and unrealized gains
    (losses) from investments and
    futures                                           (0.01)       0.05        (0.07)       (0.05)       (0.15)        0.03
Total from Investment Activities                       0.58        0.67         0.55         0.50         0.21         0.20
Distributions:
  Net investment income                               (0.58)      (0.59)       (0.60)       (0.48)       (0.37)       (0.17)
  In excess of net investment income                  --          --           --           (0.03)       (0.02)       --
Total Distributions                                   (0.58)      (0.59)       (0.60)       (0.51)       (0.39)       (0.17)
NET ASSET VALUE, END OF PERIOD                     $   9.87    $   9.87      $  9.79      $  9.84     $   9.85     $  10.03
Total Return                                           6.00%       7.14%        5.71%        5.14%        2.16%        4.93%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                $188,133    $114,413      $57,276      $51,050     $139,593     $154,413
  Ratio of expenses to average net
    assets                                             0.30%       0.35%        0.45%        0.61%        0.65%        0.58%(b)
  Ratio of net investment income to
    average net assets                                 5.92%       6.02%        6.20%        5.18%        3.70%        4.71%(b)
  Ratio of expenses to average net
    assets*                                            0.81%       0.81%        1.06%        1.01%        0.81%        1.03%(b)
  Ratio of net investment income to
    average net assets*                                5.41%       5.56%        5.59%        4.78%        3.54%        4.26%(b)
  Portfolio Turnover(c)                               41.15%      70.36%       67.65%        2.91%      242.20%      109.96%
</TABLE>


*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)The Fund commenced operations on February 2, 1993.
         (b)Annualized. (c)Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued.

                                       25
<PAGE>   140


<TABLE>
<CAPTION>
                                                                                   YEAR ENDED JUNE 30,
                                                                                   -------------------
CLASS A                                              1998          1997         1996         1995       1994        1993(a)
- -------                                              ----          ----         ----         ----       ----        -------
<S>                                                 <C>         <C>           <C>          <C>         <C>           <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                $  9.87     $  9.78       $ 9.83       $ 9.84      $ 10.03       $10.00
Investment Activities:
  Net investment income                                0.56        0.58         0.58         0.52         0.36         0.14
  Net realized and unrealized gains
    (losses) from investments and
    futures                                           (0.01)       0.09        (0.06)       (0.06)       (0.17)        0.03
Total from Investment Activities                       0.55        0.67         0.52         0.46         0.19         0.17
Distributions:
  Net investment income                               (0.55)      (0.58)       (0.57)       (0.46)       (0.34)       (0.14)
  In excess of net investment income                  --          --           --           (0.01)       (0.04)       --
Total Distributions                                   (0.55)      (0.58)       (0.57)       (0.47)       (0.38)       (0.14)
NET ASSET VALUE, END OF PERIOD                      $  9.87     $  9.87       $ 9.78       $ 9.83      $  9.84       $10.03
Total Return (Excludes Sales Charge)                   5.75%       7.00%        5.42%        4.84%        1.95%        4.78%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                 $24,747     $29,643       $3,969       $4,631      $19,053       $3,106
  Ratio of expenses to average net
    assets                                             0.54%       0.61%        0.70%        0.86%        0.89%        0.81%(b)
  Ratio of net investment income to
    average net assets                                 5.66%       5.78%        5.95%        4.88%        3.54%        4.47%(b)
  Ratio of expenses to average net
    asset*                                             1.15%       1.17%        1.41%        1.36%        1.14%        1.34%(b)
  Ratio of net investment income to
    average net asset*                                 5.05%       5.22%        5.24%        4.38%        3.29%        3.95%(b)
  Portfolio Turnover(c)                               41.15%      70.36%       67.65%        2.91%      242.20%      109.96%
</TABLE>

*     During the period certain fees were voluntarily reduced. If such
      voluntary fee reductions had not occurred, the ratios would have been
      as indicated. (a) The Fund commenced offering on March 10, 1993
      (b) Annualized. (c) Portfolio turnover is calculated on the basis of the
      Fund as a whole without distinguishing among the classes of shares
      issued.

                                       26
<PAGE>   141


   
One Group(R) Ultra Short-Term Bond Fund  Financial Highlights
    
<TABLE>
<CAPTION>
                                                                      YEAR ENDED JUNE 30,
   
CLASS B                                             1998             1997            1996            1995         1994(a)
- -------                                             ----             ----            ----            ----         -------
    
<S>                                                 <C>             <C>             <C>             <C>           <C>    
NET ASSET VALUE, BEGINNING
  OF PERIOD                                         $ 9.81          $ 9.76          $ 9.84          $ 9.86        $  9.98
Investment Activities:
  Net investment income                               0.52            0.54            0.52            0.47           0.12
  Net realized and unrealized
    gains (losses) from
    investments and futures                          (0.01)           0.05           (0.07)          (0.04)         (0.11)
Total from Investment
  Activities                                          0.51            0.59            0.45            0.43           0.01
Distributions:
  Net investment income                              (0.51)          (0.54)          (0.53)          (0.45)         (0.12)
  In excess of net
    investment income                                --              --              --              --             (0.01)
Total Distributions                                  (0.51)          (0.54)          (0.53)          (0.45)         (0.13)
NET ASSET VALUE, END
  OF PERIOD                                         $ 9.81          $ 9.81          $ 9.76          $ 9.84        $  9.86
Total Return (Excludes
  Sales Charge                                        5.32%           6.22%           4.63%           4.77%         (0.09)%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                                    $4,531          $2,818          $1,144          $  160         $   15
  Ratio of expenses to
    average net assets                                0.99%           1.07%           1.20%           1.31%          1.41%(c)
  Ratio of net investment
    income to average net
    assets                                            5.23%           5.18%           5.45%           4.91%          3.49%(c)
  Ratio of expenses to
    average net assets*                               1.75%           1.81%           2.06%           1.96%          1.83%(c)
  Ratio of net investment
    income to average net
    assets*                                           4.47%           4.44%           4.59%           4.26%          3.07%(c)
  Portfolio Turnover(d)                              41.15%          70.36%          67.65%           2.91%        242.20%
</TABLE>


*     During the period certain fees were voluntarily reduced. If such
      voluntary fee reductions had not occurred, the ratios would have been
      as indicated. (a) The Fund commenced offering on January 14, 1994.
      (b) Not annualized. (c) Annualized. (d) Portfolio turnover is calculated
      on the basis of the Fund as a whole without distinguishing among the
      classes of shares issued.

                                       27
<PAGE>   142


   
ONE GROUP(R) SHORT-TERM BOND FUND
    

INVESTMENT OBJECTIVE

   
The Fund seeks current income consistent with preservation of capital through
investment in high-and medium-grade fixed income securities.
    

INVESTMENT STRATEGY

   
The Fund invests in all types of debt securities with short to intermediate
maturities. The Fund's average weighted maturity will ordinarily range between
one and five years taking into account expected prepayment of principal on
certain investments, although the Fund may shorten the weighted average maturity
to as little as 90 days for temporary defensive purposes. This Fund was formerly
called The One Group Limited Volatility Bond Fund.
    

PORTFOLIO SECURITIES

   
The Fund invests at least 80% of its total assets in debt securities with short
to intermediate maturities. At least 65% of the Fund's total assets will consist
of bonds, (some of which may be subject to repurchase agreements). The Fund also
may purchase taxable or tax-exempt municipal securities. Up to 20% of the Fund's
total assets may be invested in preferred stock. For a list of all the
securities in which the Fund may invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

   
The Fund may invest in debt securities that are rated in the lowest investment
grade category. Such investments are considered to have speculative
characteristics. In addition, the Fund invests in fixed income securities. The
value of these securities will change in response to interest rate changes and
other factors. Also, the Fund invests in mortgage-related securities which may
have greater price and yield volatility than traditional fixed income
securities. Before you invest, please read "More About the Funds" and
"Investment Risks."
    

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       28
<PAGE>   143


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I
<S>                                                                 <C>           <C>           <C>              <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 3.00%         none           none            none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)        3.00%          1.00%            none
Redemption Fees                                                        none         none           none            none
Exchange Fees                                                          none         none           none            none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily net
    assets)
Investment Advisory Fees (after fee
   
  waiver) (4)                                                          .32%         .32%           .32%            .32%
12b-1 Fees (after fee waiver) (5)                                      .25%         .75%           .75%            none
Other Expenses                                                         .21%         .21%           .21%            .21%
Total Fund Operating Expenses
  (after fee waiver) (6)                                               .78%        1.28%          1.28%            .53%
    
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.
   
(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.16% for Class A shares, 1.81% for
         Class B shares, 1.81% for Class C shares and .81% for Class I shares.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

   
<S>                                                                     <C>            <C>           <C>           <C> 
Class A                                                                 $38            $54           $72           $124
Class A (without fee waivers)                                           $41            $66           $92           $167
Class B                                                                 $43            $61           $70           $128
Class B (without fee waivers)                                           $48            $77           $98           $180
Class C                                                                 $23            $41           $70           $155
Class C (without fee waivers)                                           $28            $57           $99           $214
Class I                                                                 $ 5            $17           $30           $ 66
Class I (without fee waivers)                                           $ 8            $26           $45           $100
    
</TABLE>

                                       29
<PAGE>   144



Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

   
<S>                                                                     <C>            <C>           <C>           <C> 
Class A                                                                 $38            $54           $72           $124
Class A (without fee waivers)                                           $41            $66           $92           $167
Class B                                                                 $13            $41           $70           $128
Class B (without fee waivers)                                           $18            $57           $98           $180
Class C                                                                 $13            $41           $70           $155
Class C (without fee waivers)                                           $18            $57           $99           $214
Class I                                                                 $ 5            $17           $30           $ 66
Class I (without fee waiver)                                            $ 8            $26           $45           $100
    
</TABLE>

Class B shares automatically convert to Class A shares after six (6) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       30
<PAGE>   145


   
ONE GROUP(R) SHORT-TERM BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
<TABLE>
<CAPTION>
   
                                                                                                               SEPTEMBER 4,
                                                                                                                  1990 TO
                                                               YEAR ENDED JUNE 30,                               JUNE 30,
CLASS I                               1998        1997       1996       1995        1994       1993       1992      1991
- -------                               ----        ----       ----       ----        ----       ----       ----      ----
    
<S>                                  <C>        <C>        <C>        <C>         <C>        <C>        <C>        <C>     
NET ASSET VALUE, BEGINNING
  OF PERIOD                          $ 10.47    $  10.42   $  10.53   $  10.33    $  10.87   $  10.72   $  10.26   $  10.00
Investment Activities:
  Net investment income                 0.63        0.63       0.64       0.60        0.54       0.61       0.70       0.58
  Net realized and unrealized
    gains (losses) from
    investments and futures             0.04        0.05      (0.11)      0.19       (0.45)      0.25       0.47       0.25
Total from Investment
  Activities                            0.67        0.68       0.53       0.79        0.09       0.86       1.17       0.83
Distributions:
  Net investment income                (0.63)      (0.63)     (0.64)     (0.59)      (0.55)     (0.62)     (0.70)     (0.57)
  In excess of net
    investment income                  --          --         --         --          (0.02)     --         --         --
  Net realized gains                   --          --         --         --          (0.06)     (0.09)     (0.01)     --
Total Distributions                    (0.63)      (0.63)     (0.64)     (0.59)      (0.63)     (0.71)     (0.71)     (0.57)
NET ASSET VALUE, END OF
  PERIOD                            $  10.51    $  10.47   $  10.42   $  10.53    $  10.33   $  10.87   $  10.72   $  10.26
Total Return                            6.59%       6.75%      5.13%      7.96%       0.79%      8.27%     11.75%      9.76%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                    $592,669    $563,979   $604,916   $410,746    $447,394   $397,820   $301,907   $154,991
  Ratio of expenses to
    average net assets                  0.53%       0.51%      0.51%      0.52%       0.50%      0.56%      0.52%      0.32%(b)
  Ratio of net investment
    income to average net
    assets                              6.01%       6.06%      6.06%      5.82%       5.10%      5.70%      6.63%      7.49%(b)
  Ratio of expenses to
    average net assets*                 0.82%       0.81%      0.82%      0.85%       0.85%      0.90%      1.04%      0.92%(b)
  Ratio of net investment
    income to average net
    assets*                             5.72%       5.76%      5.75%      5.49%       4.75%      5.36%      6.11%      6.89%(b)
  Portfolio Turnover (a)               56.99%      66.61%     75.20%     76.43%      30.61%     40.28%     43.87%     24.69%
</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. (b) Annualized.

                                       31
<PAGE>   146

   
<TABLE>
<CAPTION>
                                                                             YEAR ENDED JUNE 30,
                                                                             -------------------
CLASS A                                           1998       1997        1996       1995       1994       1993      1992(c)
- -------                                           ----       ----        ----       ----       ----       ----      -------
<S>                                              <C>        <C>        <C>         <C>        <C>        <C>         <C>   
NET ASSET VALUE, BEGINNING OF PERIOD             $ 10.46    $ 10.41    $ 10.52     $ 10.32    $ 10.87    $ 10.72     $10.61
INVESTMENT ACTIVITIES:
  Net investment income                             0.61       0.61       0.63        0.56       0.52       0.59       0.24
  Net realized and unrealized gains
    (losses) from investments and futures           0.04       0.05      (0.13)       0.21      (0.46)      0.24       0.13
Total from Investment Activities                    0.65       0.66       0.50        0.77       0.06       0.83       0.37
Distributions:
  Net investment income                            (0.61)     (0.61)     (0.61)      (0.56)     (0.51)     (0.59)     (0.26)
  In excess of net investment income               --         --         --          (0.01)     (0.04)     --         --
  Net realized gains                               --         --         --          --         (0.06)     (0.09)     --
Total Distributions                                (0.61)     (0.61)     (0.61)      (0.57)     (0.61)     (0.68)     (0.26)
Net Asset Value, End of Period                   $ 10.50    $ 10.46    $ 10.41     $ 10.52    $ 10.32    $ 10.87     $10.72
Total Return (Excludes Sales Charge)                6.32%      6.47%      4.86%       7.67%      0.49%      8.04%      9.84%(b)
Ratios/Supplementary Data:
  Net Assets at end of period (000)              $15,582    $20,055    $21,343     $12,516    $15,216    $15,719     $  161
  Ratio of expenses to average net
    assets                                          0.78%      0.76%      0.76%       0.77%      0.75%      0.76%      0.99%(b)
  Ratio of net investment income to
    average net assets                              5.77%      5.81%      5.81%       5.57%      4.92%      5.35%      5.95%(b)
  Ratio of expenses to average net
    assets*                                         1.17%      1.16%      1.17%       1.20%      1.20%      1.27%      1.29%(b)
  Ratio of net investment income
    to average net assets*                          5.38%      5.41%      5.40%       5.14%      4.47%      4.84%      5.65%(b)
  Portfolio Turnover (a)                           56.99%     66.61%     75.20%      76.43%     30.61%     40.28%     43.87%
</TABLE>
    

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a) Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued. (b) Annualized. (c) Class A Shares commenced offering on
         February 18, 1992.

                                       32
<PAGE>   147


   
ONE GROUP(R) SHORT-TERM BOND FUND  FINANCIAL HIGHLIGHTS
    
<TABLE>
<CAPTION>

                                                                           YEAR ENDED JUNE 30,
                                                                           -------------------
CLASS B                                            1998            1997            1996           1995           1994(a)
- -------                                            ----            ----            ----           ----           -------
<S>                                                 <C>             <C>             <C>             <C>            <C>   
NET ASSET VALUE, BEGINNING
  OF PERIOD                                         $10.53          $10.49          $10.60          $10.40         $10.78
Investment Activities:
  Net investment income                               0.58            0.55            0.55            0.53           0.17
  Net realized and
    unrealized gains
    (losses) from
    investments and futures                           0.04            0.04           (0.10)           0.19          (0.37)
Total from Investment
  Activities                                          0.62            0.59            0.45            0.72          (0.20)
Distributions:
  Net investment income                              (0.58)          (0.55)          (0.56)          (0.52)         (0.15)
  In excess of net realized
    gains                                            --              --              --              --             (0.03)
Total Distributions                                  (0.58)          (0.55)          (0.56)          (0.52)         (0.18)
NET ASSET VALUE, END OF
  PERIOD                                            $10.57          $10.53          $10.49          $10.60         $10.40
Total Return (Excludes
  Sales Charge)                                       5.98%           5.74%           4.28%           7.18%         (1.81)%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                                    $4,851          $4,920          $4,923          $2,906         $1,974
  Ratio of expenses to
    average net assets                                1.11%           1.20%           1.26%           1.28%          1.26%(c)
  Ratio of net investment
    income to average net
    assets                                            5.44%           5.21%           5.31%           5.10%          4.39%(c)
  Ratio of expenses to
    average net assets*                               1.64%           1.81%           1.82%           1.86%          1.86%(c)
  Ratio of net investment
    income to average net
    assets*                                           4.91%           4.60%           4.75%           4.52%          3.79%(c)
  Portfolio Turnover (d)                             56.99%          66.61%          75.20%          76.43%         30.61%
</TABLE>


*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a) Class B Shares commenced offering on January 14,
         1994. (b) Not annualized. (c) Annualized. (d) Portfolio turnover is
         calculated on the basis of the Fund as a whole without distinguishing
         among the classes of shares issued.

                                       33
<PAGE>   148


   
ONE GROUP(R) TREASURY & AGENCY FUND
    

INVESTMENT OBJECTIVE

   
The Fund seeks a high level of current income by investing in U.S. Treasury and
other U.S. agency obligations with a primary, but not exclusive, focus on issues
that produce income exempt from state income taxes.
    

INVESTMENT STRATEGY

   
The Fund invests in U.S. Treasury and other U.S. agency obligations including
fixed income securities and mortgage-related securities. Normally, the Fund's
average weighted maturity will range between two and five years.
    

PORTFOLIO SECURITIES

   
The Fund normally invests at least 65% of its total assets in U.S. Treasury
bills, notes and other obligations issued or guaranteed by the U.S. Treasury
("Treasury Obligations") and securities issued or guaranteed by U.S. government
agencies and instrumentalities. Treasury Obligations may include Separately
Traded Registered Interest and Principal Securities ("STRIPS"), Coupon Under
Book Entry Safekeeping ("CUBES"), and securities of other government-only
investment companies, including other funds of One Group. The Fund also may
invest in government mortgage-backed securities and government adjustable rate
mortgage loans ("ARMs"), as well as engage in securities lending. For a list of
all the securities in which the Fund may invest, please read "Investment
Practices."
    

RISK CONSIDERATIONS

   
The Fund invests in fixed income securities. The value of these securities will
change in response to interest rate changes and other factors. Before you
invest, please read "More About the Funds" and "Investment Risks."
    

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       34
<PAGE>   149


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I
<S>                                                                <C>          <C>              <C>            <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 3.00%         none            none           none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)        3.00%           1.00%           none
Redemption Fees                                                        none         none            none           none
Exchange Fees                                                          none         none            none           none
ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily
    net assets)
Investment Advisory Fees (after fee
  waiver)(4)                                                           .20%         .20%            .20%           .20%
12b-1 Fees (after fee waiver)(5)                                       .25%         .75%            .75%           none
Other Expenses                                                         .25%         .25%            .25%           .25%
Total Fund Operating Expenses
  (after fee waiver)(6)                                                .70%        1.20%           1.20%           .45%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .40% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of fees, Total Operating Expenses would
         be 1.00% for Class A shares, 1.65% for Class B shares, 1.65% for Class
         C shares and .65% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
<S>                                                                     <C>            <C>           <C>           <C> 
Class A                                                                 $37            $52           $68           $114
Class A (without fee waivers)                                           $40            $61           $84           $149
Class B                                                                 $42            $58           $66           $119
Class B (without fee waivers)                                           $47            $72           $90           $162
Class C                                                                 $22            $38           $66           $145
Class C (without fee waivers)                                           $27            $52           $90           $195
Class I                                                                 $ 5            $14           $25           $ 57
Class I (without fee waivers)                                           $ 7            $21           $36           $ 81
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

                                       35
<PAGE>   150


<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS

<S>                                                                     <C>            <C>           <C>           <C> 
Class A                                                                 $37            $52           $68           $114
Class A (without fee waivers)                                           $40            $61           $84           $149
Class B                                                                 $12            $38           $66           $119
Class B (without fee waivers)                                           $17            $52           $90           $162
Class C                                                                 $12            $38           $66           $145
Class C (without fee waivers)                                           $17            $52           $90           $195
Class I                                                                 $ 5            $14           $25           $ 57
Class I (without fee waivers)                                           $ 7            $21           $36           $ 81
</TABLE>

Class B shares automatically convert to Class A shares after six (6) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       36
<PAGE>   151


   
ONE GROUP(R) TREASURY & AGENCY FUND   FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
                                                                                                              JANUARY 20,
                                                                                                                 1997
                                                                                         YEAR ENDED             THROUGH
                                                                                          JUNE 30,             JUNE 30,
CLASS I                                                                                     1998                1997(a)
- -------                                                                                     ----                -------
<S>                                                                                      <C>                   <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                                                     $  9.99               $ 10.00
Investment Activities:
  Net investment income                                                                     0.62                  0.28
  Net realized and unrealized gains (losses)
    from investments and futures                                                            0.15                 (0.01)
Total from Investment Activities                                                            0.77                  0.27
Distributions:
  Net investment income                                                                    (0.62)                (0.28)
  Net realized gains                                                                       (0.05)                --
Total Distributions                                                                        (0.67)                (0.28)
NET ASSET VALUE, END OF PERIOD                                                           $ 10.09              $   9.99
Total Return (Excludes Sales Charge)                                                        7.91%                 2.78%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                      $95,073              $110,084
  Ratio of expenses to average net assets                                                   0.35%                 0.45%(c)
  Ratio of net investment income to average
    net assets                                                                              6.16%                 6.44%(c)
  Ratio of expenses to average net assets*                                                  0.65%                 0.78%(c)
  Ratio of net investment income to average net
    assets*                                                                                 5.86%                 6.11%(c)
  Portfolio Turnover(d)                                                                    41.60%                54.44%
</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.

                                       37
<PAGE>   152

   
<TABLE>
<CAPTION>
                                                                                                              JANUARY 20,
                                                                                                                 1997
                                                                                         YEAR ENDED             THROUGH
                                                                                          JUNE 30,             JUNE 30,
CLASS A                                                                                     1998                1997(a)
- -------                                                                                     ----                -------
<S>                                                                                      <C>                   <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                                                     $  9.98               $ 10.00
Investment Activities:
  Net investment income                                                                     0.63                  0.29
  Net realized and unrealized gains (losses)
    from investments and futures                                                            0.16                 (0.02)
Total from Investment Activities                                                            0.79                  0.27
Distributions:
  Net investment income                                                                    (0.63)                (0.29)
  Net realized gains                                                                       (0.05)                --
Total Distributions                                                                        (0.68)                (0.29)
NET ASSET VALUE, END OF PERIOD                                                           $ 10.09               $  9.98
Total Return (Excludes Sales Charge)                                                        8.10%                 2.78%(b)
Ratios/Supplementary Data:
  Net Assets at end of period (000)                                                      $35,213               $    94
  Ratio of expenses to average net assets                                                   0.58%                 0.71%(c)
  Ratio of net investment income to average
    net assets                                                                              5.87%                 6.47%(c)
  Ratio of expenses to average net assets*                                                  0.98%                 1.15%(c)
  Ratio of net investment income to average
    net assets*                                                                             5.47%                 6.03%(c)
  Portfolio Turnover(d)                                                                    41.60%                54.44%
</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.

                                       38
<PAGE>   153


   
ONE GROUP(R) TREASURY & AGENCY FUND   FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
                                                                                                              JANUARY 20,
                                                                                                                 1997
                                                                                         YEAR ENDED             THROUGH
                                                                                          JUNE 30,             JUNE 30,
CLASS B                                                                                     1998                1997(a)
- -------                                                                                     ----                -------
<S>                                                                                       <C>                   <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                                                      $  9.99               $ 10.00
Investment Activities:
  Net investment income                                                                      0.58                  0.26
  Net realized and unrealized gains (losses)
    from investments and futures                                                             0.14                 (0.01)
Total from Investment Activities                                                             0.72                  0.25
Distributions:
  Net investment income                                                                     (0.58)                (0.26)
  Net realized gains                                                                        (0.05)                   --
Total Distributions                                                                         (0.63)                (0.26)
NET ASSET VALUE, END OF PERIOD                                                            $ 10.08               $  9.99
Total Return (Excludes Sales Charge)                                                         7.33%                 2.58%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)                                                      $12,483                  $    80
  Ratio of expenses to average net assets                                                    1.08%                 1.23%(c)
  Ratio of net investment income to average
    net assets                                                                               5.39%                 6.30%(c)
  Ratio of expenses to average net assets*                                                   1.63%                 1.81%(c)
  Ratio of net investment income to average
    net assets*                                                                              4.84%                 5.72%(c)
  Portfolio Turnover(d)                                                                     41.60%                54.44%
</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.

                                       39
<PAGE>   154


   
ONE GROUP(R) HIGH YIELD BOND FUND
    

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income by investing primarily in a
diversified portfolio of debt securities which are rated below investment grade
or unrated. Capital appreciation is a secondary objective.

INVESTMENT STRATEGY

   
The Fund invests in all types of high yield, high risk debt securities. The Fund
also may invest in convertible securities, preferred stock, common stock, and
loan participations. The Fund's average weighted maturity will normally range
between five and ten years, although the Fund may shorten its average weighted
maturity to as little as two years if deemed appropriate for temporary defensive
purposes.
    

PORTFOLIO SECURITIES

   
The Fund normally invests at least 80% of its total assets in debt securities,
loan participations, convertible securities and preferred stock which are rated
below investment grade or unrated, although the Fund may invest up to 100% of
the Fund's total assets in such securities. Securities rated below investment
grade are called "high yield bonds," "non-investment grade bonds," "below
investment grade bonds" or "junk bonds." These securities generally are rated in
the fifth or lower rating categories (for example, BB or lower by Standard &
Poor's Corporation and Ba or lower by Moody's Investors Service, Inc.), and are
considered to be speculative. The Fund also may invest up to 20% of its total
assets in other securities, including investment grade debt securities. As a
matter of fundamental policy, at least 65% of the Fund's total assets will
consist of bonds. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in debt securities which are considered speculative. While
these securities generally provide a higher yield than higher rated debt
securities, they are subject to a greater degree of risk. Issuers of these
securities may include highly leveraged, less creditworthy companies or
financially distressed firms. The credit quality of these securities can change
suddenly and unexpectedly. Before you invest, please read "More About the
Funds," "Special Investment Risks," and "Investment Risks."

FUND MANAGEMENT

Banc One High Yield Partners, LLC serves as sub-advisor to the Fund. Banc One
High Yield Partners, LLC is controlled by Banc One Investment Advisors and
Pacholder Associates, Inc. Anthony L. Longi, Jr., an officer of Banc One High
Yield Partners, LLC is the Manager of the Fund. As an officer of Pacholder
Associates, Inc., Mr. Longi has served as portfolio manager of the Pacholder
Fund, Inc. since 1994 and as a high yield research analyst with Pacholder
Associates, Inc. since 1987.

                                       40
<PAGE>   155



   
<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                                  CLASS A      CLASS B        CLASS C         CLASS I
<S>                                                                 <C>          <C>            <C>              <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                 4.50%         none            none           none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                       none(2)        5.00%           1.00%           none
Redemption Fees                                                        none         none            none           none
Exchange Fees                                                          none         none            none           none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily net
    assets)
Investment Advisory Fees (after fee
  waiver)(3)                                                           .60%         .60%            .60%           .60%
12b-1 Fees (after fee waiver)(4)                                       .25%         .90%            .90%           none
Other Expenses                                                         .27%         .27%            .27%           .27%
Total Fund Operating Expenses
  (after fee waivers)(5)                                              1.12%        1.77%           1.77%           .87%
    
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .75% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A shares and 1.00% for Class B and Class C shares.

   
    
   
(5)      Without the voluntary reduction of Investment Advisory, 12b-1 fees and
         expense reimbursements, Total Operating Expenses would be 1.37% for
         Class A shares, 2.02% for Class B shares, 2.02% for Class C shares and
         1.02% for Class I shares.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                                                1 YEAR           3 YEARS

   
<S>                                                                                               <C>               <C>
Class A                                                                                           $56               $79
Class A (without fee waiver)                                                                      $58               $86
Class B                                                                                           $68               $86
Class B (without fee waiver)                                                                      $71               $93
Class C                                                                                           $28               $56
Class C (without fee waiver)                                                                      $31               $63
Class I                                                                                            $9               $28
Class I (without fee waiver)                                                                      $10               $32
    
</TABLE>

                                       41
<PAGE>   156


Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                                                                1 YEAR           3 YEARS

   
<S>                                                                                               <C>               <C>
Class A                                                                                           $56               $79
Class A (without fee waiver)                                                                      $58               $86
Class B                                                                                           $18               $56
Class B (without fee waiver)                                                                      $21               $63
Class C                                                                                           $18               $56
Class C (without fee waiver)                                                                      $21               $63
Class I                                                                                            $9               $28
Class I (without fee waiver)                                                                      $10               $32
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

   
ONEGROUP(R) HIGH YIELD BOND FUND  FINANCIAL HIGHLIGHTS
    

This section normally would include Financial Highlights for the Fund. Because
the Fund had not begun operations as of June 30, 1998, there are no Financial
Highlights for the Fund.


                                       42
<PAGE>   157


   
ONE GROUP(R) BOND FUND

INVESTMENT OBJECTIVE

The Fund seeks to maximize total return by investing primarily in a diversified
portfolio of intermediate and long-term debt securities.

INVESTMENT STRATEGY

The Fund invests in all types of debt securities rated as investment grade, as
well as convertible securities, preferred stock, and loan participations. The
Fund's average weighted maturity will normally range between four and twelve
years, although the Fund may shorten its weighted average if deemed appropriate
for temporary defensive purposes.

PORTFOLIO SECURITIES

The Fund invests at least 65% of its total assets in debt securities of all
types with intermediate to long maturities. As a matter of fundamental policy,
at least 65% of the Fund's total assets will consist of bonds. The Fund may
purchase taxable or tax-exempt municipal securities. For a list of all the
securities in which the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund may invest in debt securities that are rated in the lowest investment
grade category. Such investments are considered to have speculative
characteristics. In addition, the Fund invests in fixed income securities. The
value of these securities will change in response to interest rate changes and
other factors. This is especially true to the extent the Fund invests in debt
securities in the lowest investment grade category. The Fund also invests in
mortgage-related securities which may have greater price and yield volatility
than traditional fixed income securities. Before you invest, please read "More
About the Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.
    



                                       43
<PAGE>   158


   
SHAREHOLDER EXPENSES


<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES (1)                            CLASS A          CLASS B        CLASS C       CLASS I
- ------------------------------------                            -------          -------        -------       -------
<S>                                                             <C>             <C>             <C>           <C>
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                             4.50%            none            none         none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase price
  or redemption proceeds, as applicable)                        none(2)           5.00%           1.00%         none
Redemption Fees                                                    none            none            none         none
Exchange Fees                                                      none            none            none         none
ANNUAL OPERATING EXPENSES
(as a  percentage of average daily net assets)
Investment Advisory Fees (after fee waiver) (3)                    .40%            .40%            .40%         .40%
12b-1 Fees (after fee waiver) (4)                                  .25%            .90%            .90%         none
Other Expenses (after reimbursements) (5)                          .20%            .20%            .20%         .20%
Total Fund Operating Expenses
  (after fee waivers) (6)                                          .85%           1.50%           1.50%         .60%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(5)      Without expense reimbursements, Other Expenses would be .21% for all 
         classes of shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees
         and reimbursement of Other Expenses, Total Operating Expenses would be
         1.16% for Class A shares, 1.81% for Class B shares, 1.81% for Class C
         shares and .81% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
<S>                                                                    <C>         <C>           <C>             <C> 
Class A                                                                $53         $71           $ 90            $145
Class A (without fee waivers)                                          $56         $80           $106            $180
Class B                                                                $65         $77           $102            $161
Class B (without fee waivers)                                          $68         $87           $118            $196
Class C                                                                $25         $47           $ 82            $179
Class C (without fee waivers)                                          $28         $57           $ 98            $213
Class I                                                                $ 6         $19           $ 33            $ 75
Class I (without fee waiver)                                           $ 8         $26           $ 45            $100
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:
    


                                       44
<PAGE>   159




   
<TABLE>
<CAPTION>
                                                                     1 YEAR         3 YEARS       5 YEARS         10 YEARS
<S>                                                                    <C>         <C>           <C>             <C> 
Class A                                                                $53         $71           $ 90            $145
Class A (without fee waivers)                                          $56         $80           $106            $180
Class B                                                                $15         $47           $ 82            $161
Class B (without fee waivers)                                          $18         $57           $ 98            $196
Class C                                                                $15         $47           $ 82            $179
Class C (without fee waivers)                                          $18         $57           $ 98            $213
Class I                                                                $ 6         $19           $ 33            $ 75
Class I (without fee waiver)                                           $ 8         $26           $ 45            $100
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by_______________________________, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
    




                                       45
<PAGE>   160


MORE ABOUT THE FUNDS

WHEN THE PROSPECTUS REFERS TO "BONDS," WHAT TYPES OF INVESTMENTS ARE INCLUDED?

   
"Bonds" include debt instruments with maturities of 90 days or more issued by
the U.S. Treasury, U.S. Government agencies, corporations, municipalities,
securities issued or guaranteed by foreign governments, their agencies or
instrumentalities, securities issued by domestic and supranational banks,
mortgage-related securities, asset-backed securities, stripped government
securities and zero coupon obligations.
    

PORTFOLIO QUALITY

The Funds only purchase securities that meet the following criteria:

DEBT SECURITIES

           -      The Government Bond Fund and the Treasury & Agency Fund may
                  invest in debt securities rated in any of the three highest
                  investment grade rating categories.

   
           -      The Ultra Short-Term Bond Fund, the Intermediate Bond Fund,
                  the Short-Term Bond Fund and the Bond Fund may invest in debt
                  securities rated in any of the four investment grade rating
                  categories.
    

           -      The Income Bond Fund and the High Yield Bond Fund may
                  purchase securities in ANY rating category. Please read
                  "Special Risk Considerations" and "High Yield/Junk Bonds" for
                  more information about the Income Bond Fund.

PREFERRED STOCK

   
           -      The Ultra Short-Term Bond Fund, the Short-Term Bond Fund, the
                  Bond Fund and the Intermediate Bond Fund may only invest in
                  preferred stock rated in any of the four highest rating
                  categories.
    

           -      The Income Bond Fund and the High Yield Bond Fund may invest
                  in preferred stock in any rating category.

MUNICIPAL SECURITIES

   
           -      The Intermediate Bond Fund, the Short-Term Bond Fund, the
                  Bond Fund and the Ultra Short-Term Bond Fund may only invest
                  in municipal bonds rated in any of the four highest rating
                  categories.

           -      The Intermediate Bond Fund, the Ultra Short-Term Bond Fund
                  and the Bond Fund may only invest in other municipal
                  securities, such as tax-exempt commercial paper, notes, and
                  variable rate demand obligations which are rated in the
                  highest or second highest rating categories. The Short-Term
                  Bond Fund may invest in such securities only if they are rated
                  in the highest rating category.
    

           -      The Income Bond Fund and the High Yield Bond Fund may invest
                  in municipal securities rated in ANY category.

COMMERCIAL PAPER

   
           -      The Intermediate Bond Fund, the Short-Term Bond Fund, the
                  Bond Fund and the Ultra Short-Term Bond Fund may invest in
                  commercial paper rated in the highest or second highest rating
                  category.
    

           -      The High Yield Bond Fund and the Income Bond Fund may invest
                  in commercial paper in any rating category.


                                       46
<PAGE>   161


If the securities are unrated, Banc One Investment Advisors must determine that
they are of comparable quality to rated securities. Banc One Investment Advisors
will look at a security's rating at the time of investment. For more information
about ratings, please see "Description of Ratings" in the Appendix.

ILLIQUID INVESTMENTS

   
Each Fund may invest up to 15% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by the One Group Board of Trustees in determining whether an
investment is illiquid.
    

SPECIAL RISK CONSIDERATIONS

FIXED INCOME SECURITIES: Investments in fixed income securities (for example,
bonds) will increase or decrease in value based on changes in interest rates. If
rates increase, the value of a Fund's investments generally declines. On the
other hand, if rates fall, the value of the investments generally increases. The
value of your investment in a Fund will increase and decrease as the value of a
Fund's investments increase and decrease. While securities with longer duration
and maturities tend to produce higher yields, they also are subject to greater
fluctuations in value when interest rates change. Usually, changes in the value
of fixed income securities will not affect cash income generated, but may affect
the value of your investment. Fixed income securities also are subject to the
risk that the issuer of the security will be unable to meet its repayment
obligation.

   
DERIVATIVES: Some of the Funds may invest in securities that are considered to
be derivatives. "Derivatives" are securities or contracts that derive their
value from the performance of underlying assets or securities. These include:
    

         -        options, futures contracts, and options on futures contracts

   
         -        mortgage-backed securities, including collateralized mortgage
                  obligations and Real Estate Mortgage Investment Conduits (CMOs
                  and REMICs) and stripped mortgage-backed (Interest Only (IOs)
                  and Principal Only (POs))
    

         -        asset-backed securities

         -        swap, cap and floor transactions

         -        new financial products

         -        structured instruments

         -        inverse floating rate instruments

These securities may be more volatile than other investments. Derivatives
present, to varying degrees, market, credit, leverage, liquidity, and management
risks. For a more detailed discussion of these risks, please read "Investment
Risks." The Fund's use of derivatives may cause the Fund to recognize higher
amounts of short-term capital gains (generally taxed at ordinary income tax
rates) than it would if the Fund did not use such instruments.

   
LOWER RATED SECURITIES: The Intermediate Bond Fund, the Ultra Short-Term Bond
Fund, the Short-Term Bond Fund, the Bond Fund and the Income Bond Fund may
invest in debt securities rated in the lowest investment grade category.
Securities in this rating category are considered to have speculative
characteristics. Changes in economic conditions or other circumstances may have
a greater effect on the ability of issuers of these securities to make principal
and interest payments than they do on issuers of higher grade securities.
    

HIGH YIELD/JUNK BONDS: The Income Bond Fund and the High Yield Bond Fund invest
in high yield securities that are unrated or rated below investment grade
(commonly known as "junk bonds"). These securities are considered to be high
risk investments. You should not invest in the Funds unless you are willing to
assume the greater risk associated with high yield securities. These risks
include the following:


                                       47
<PAGE>   162


   
         GREATER RISK OF LOSS. There is a greater risk that issuers of lower
         rated securities will default than issuers of higher rated securities.
         Issuers of lower rated securities may be less creditworthy, highly
         indebted, financially distressed, or bankrupt. These issuers are more
         vulnerable to real or perceived economic changes, political changes or
         adverse industry developments. If an issuer fails to pay principal or
         interest, the Funds would experience a decrease in income and a decline
         in the market value of their investments. The Funds may also incur
         additional expenses in seeking recovery from the issuer.
    

         SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES. The income and
         market value of the Funds' securities may fluctuate more than higher
         rated securities. Although non-investment grade securities tend to be
         less sensitive to interest rate changes than investment grade
         securities, non-investment grade securities are more sensitive to
         short-term corporate, economic and market developments. During periods
         of economic uncertainty and change, the market price of the Funds'
         investments and the Funds' net asset value may be volatile.

   
         VALUATION DIFFICULTIES. It is often more difficult to value lower rated
         securities than higher rated securities. If an issuer's financial
         condition deteriorates, accurate financial and business information may
         be limited or unavailable. In addition, the Funds' investments may be
         thinly traded and there may be no established secondary market. Because
         of the lack of market pricing and current information for certain of
         the Funds' investments, valuation of such investments is much more
         dependent on judgment than is the case with higher rated securities.
    

         LIQUIDITY. There may be no established secondary or public market for
         the Funds' investments. As a result, the Funds may be required to sell
         investments at substantial losses or retain them indefinitely even
         where an issuer's financial condition is deteriorating.

         HIGH YIELD BOND MARKET. Unlike investment grade securities (including
         securities which were investment grade when issued but have fallen
         below investment grade), the track record for bond default rates on new
         issues of non-investment grade bonds is relatively short. It may be
         that future default rates on new issues of non-investment grade
         securities will be more widespread and higher than in the past,
         especially if economic conditions deteriorate.

         CREDIT QUALITY. Credit quality of non-investment grade securities can
         change suddenly and unexpectedly, and even recently-issued credit
         ratings may not fully reflect the actual risks posed by a particular
         high-yield security. For these reasons, the Funds will not rely solely
         on ratings issued by established credit rating agencies, but will use
         such ratings in conjunction with Banc One Investment Advisor's or the
         Sub-Advisor's independent and ongoing review of credit quality. (Please
         see "Description of Ratings" in the Appendix for additional
         information). Because investments in lower rated or unrated securities
         involve greater investment risk, achievement of the Funds' investment
         objectives will be more dependent on Banc One Investment Advisor's or
         the Sub-Advisor's credit analysis than would be the case if the Funds
         were investing in higher rated securities. The Funds may seek to hedge
         investments through transactions in options, futures contracts and
         related options. The Funds also may use swap agreements to further
         manage exposure to lower rated securities.

         EXPERIENCE OF ADVISOR AND SUB-ADVISOR. The High Yield Bond Fund's
         portfolio manager has been responsible for the day-to-day management of
         the Pacholder Fund, Inc. since 1994. The Pacholder Fund, Inc. is a
         closed end fund that invests primarily in high risk, high yield
         securities. Open-end investment companies, like the Fund, are subject
         to different regulatory requirements than closed-end funds such as the
         Pacholder Fund, Inc. The Sub-Advisor, Banc One Investment Advisors and
         the portfolio manager have limited experience in managing an open-end
         investment company (like the Fund) that primarily invests in high
         yield, high risk bonds.

   
FOREIGN SECURITIES: Investments in foreign securities involve risks different
from investments in U.S. securities. For more details, see "Investment
Practices" and "Investment Risks." Because of these risk factors, the share
price of a Fund investing in foreign securities is expected to be volatile, and
you should be able to sustain sudden, and sometimes substantial, fluctuations in
the value of your investment. On January 1, 1999, the European Economic and
Monetary Union introduced the "Euro." The Euro will serve as a common currency
for participating European nations. All stocks issued by corporations located in
those nations will be denominated in Euros. In addition, outstanding shares will
be redenominated in Euros. All government bonds issued by participating nations
will be in Euros, and outstanding government bonds will be redenominated in
Euros. The introduction of the Euro presents some uncertainties, such as the
adequacy of newly created accounting, clearing, settlement and payment systems
for the new currency. These uncertainties surrounding the introduction of the
Euro could adversely affect the value of the securities held by a Fund.
    


                                       48
<PAGE>   163


   
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS
    

PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

   
         -        The One Group Services Company, and
    

         -        Shareholder Servicing Agents. These include investment
                  advisors, brokers, financial planners, banks, insurance
                  companies, retirement or 401(k) plan sponsors, or other
                  intermediaries. Shares purchased this way will be held for you
                  by the Shareholder Servicing Agent.

WHEN CAN I BUY SHARES?

         -        Purchases may be made on any business day. This includes any
                  day that the Funds are open for business, other than weekends,
                  days on which the New York Stock Exchange ("NYSE") is closed,
                  and the following holidays: New Year's Day, Martin Luther
                  King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
                  Independence Day, Labor Day, Thanksgiving, and Christmas.

   
         -        Purchase requests received by The One Group Services Company
                  before 4 p.m. Eastern Time ("ET"), will be effective that day.
                  On occasion, the NYSE will close before 4 p.m. ET. When that
                  happens, purchase requests received after the NYSE closes will
                  be effective the following business day.
    

         -        Purchase orders may be cancelled by the Fund's Custodian,
                  State Street Bank and Trust Company, if it does not receive
                  "federal funds" by 4:00 p.m. ET (i) on the business day after
                  the order is placed if you are buying Class I shares, and (ii)
                  on the third business day if you are purchasing Class A, Class
                  B or Class C shares.

         -        If your shares are held by a Shareholder Servicing Agent, it
                  is the responsibility of the Shareholder Servicing Agent to
                  send your purchase or redemption order to the Fund. Your
                  Shareholder Servicing Agent may have an earlier cut-off time
                  for purchase and redemption requests.

   
         -        The One Group Services Company can reject a purchase order
                  if it does not think that it is in the best interests of a
                  Fund and/or its shareholders to accept the order.
    

         -        Shares are electronically recorded. Therefore, certificates
                  will not be issued.

WHAT KIND OF SHARES CAN I BUY?

   
OneGroup offers the following classes of shares:
    

         -        Class A, Class B and Class C shares are available to the
                  general public.

         -        Class I shares are available to institutional investors and
                  any organization authorized to act in a fiduciary, advisory,
                  custodial or agency capacity. We will refer to these entities
                  as "Intermediaries."

         -        If you intend to hold your shares six or more years, Class B
                  shares may be appropriate for you. If you intend to hold your
                  shares for less than six years, you may want to consider Class
                  A or Class C shares.

   
One Group Fund Direct IRA. The One Group offers a retirement plan. This plan
allows participants to defer taxes while their retirement savings grow. Call The
One Group Services Company at 1-800-480-4111 for an Adoption Agreement.
    

                                       49
<PAGE>   164

HOW MUCH DO SHARES COST?

         -        Shares are sold at net asset value ("NAV") plus a sales
                  charge, if any.

         -        Each class of shares in each Fund has a different NAV. This is
                  primarily because each class has different distribution
                  expenses.

         -        NAV per share is calculated by dividing the total market value
                  of a Fund's investments and other assets allocable to a class
                  (minus class expenses) by the number of outstanding shares in
                  that class.

         -        A Fund's NAV changes every day. NAV is calculated each
                  business day following the close of the NYSE at 4:00 p.m. ET.
                  On occasion, the NYSE will close before 4:00 p.m ET. When that
                  happens, NAV will be calculated as of the time the NYSE
                  closes.

HOW DO I OPEN AN ACCOUNT?

1.       Read the prospectus carefully, and select the Fund or Funds most
         appropriate for you.

2.       Decide how much you want to invest.

   
         -        The minimum initial investment for all Funds except the
                  Treasury & Agency Fund is $1,000 ($100 for employees of BANK
                  ONE CORPORTAION and its affiliates). The minimum initial
                  investment for the Treasury & Agency Fund is $50,000. The
                  minimum initial investment for an IRA is $250.
    

         -        Subsequent investments for all Funds except the Treasury &
                  Agency Fund must be at least $100 ($25 for employees of BANK
                  ONE CORPORTAION and its affiliates). Subsequent investments
                  for the Treasury & Agency Fund must be at least $1,000.

         -        You may purchase no more than $250,000 of Class B shares at
                  one time.

   
         -        The One Group Services Company may waive these minimums.
    

3.       Complete the Account Application Form. Be sure to sign up for all of
         the Account privileges that you plan to take advantage of. Doing so now
         means that you will not have to complete additional paperwork later.

4.       Send the completed application and a personal check (unless you choose
         to pay by wire or bank transfer) payable to

   
         "One Group" to:
         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

         Contributions to Fund Direct IRAs should be made payable to "State
         Street Bank and Trust Company for the Benefit of (your name)."

5.       All checks should be in U.S. dollars. Third party checks will not be
         accepted. Redemptions from a Fund will not be permitted for ten (10)
         calendar days if purchases are made by check or under the Systematic
         Investment Plan (see below).

6.       If you purchase shares through a Shareholder Servicing Agent, you may
         be required to complete additional forms or follow additional
         procedures. You should contact your Shareholder Servicing Agent
         regarding purchases, exchanges and redemptions.

   
7.       If you have any questions, contact your Shareholder Servicing Agent or
         call The One Group Services Company at 1-800-480-4111.
    

                                       50
<PAGE>   165

CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes, simply select this option on your Account Application Form and then:

   
         -        Contact your Shareholder Servicing Agent or The One Group
                  Services Company at 1-800-480-4111 to relay your purchase
                  instructions.

         -        Send a personal check made payable to "One Group" to State
                  Street Bank and Trust Company (see address above), authorize a
                  bank transfer or initiate a wire transfer to the following
                  wire address:
    

         State Street Bank & Trust Company
         Attn: Custody & Shareholder Services
         ABA 011 000 028
         DDA 99034167
   
         FBO One Group Fund (ex: One Group Intermediate Bond Fund--A)
         Your Account Number (ex: 123456789)
         Your Account Registration (ex: John Smith & Mary Smith, JTWROS)

         -        One Group uses reasonable procedures to confirm that
                  instructions given by telephone are genuine. These procedures
                  include recording telephone instructions and asking for
                  personal identification. If these procedures are followed, The
                  One Group will not be responsible for any loss, liability,
                  cost or expense of acting upon unauthorized or fraudulent
                  instructions; you bear the risk of loss.
    

         -        You may revoke your right to make purchases over the telephone
                  by sending a letter to:

   
         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

CAN I AUTOMATICALLY INVEST ON A SYSTEMATIC BASIS?

   
Yes, except for The Treasury & Agency Fund. After your Account is established,
you may purchase additional Class A, Class B and Class C shares by making
automatic monthly investments from your bank account. The minimum initial
investment is still $1,000, but minimum automatic additions are only $25. The
One Group Services Company may waive these minimums. To establish a Systematic
Investment Plan:
    

         -        Select the "Systematic Investment Plan" option on the Account
                  Application Form.

         -        Provide the necessary information about the bank account from
                  which your investments will be made.

         -        Shares purchased under a Systematic Investment Plan may not be
                  redeemed for ten (10) calendar days.

   
                  The One Group currently does not charge for this service,
                  but may impose a charge in the future. However, your bank may
                  impose a charge for debiting your bank account.

         -        You may revoke your right to make systematic investments by
                  calling The One Group Services Company at 1-800-480-4111 or by
                  sending a letter to:

         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

                                       51
<PAGE>   166


CONVERSION FEATURE

         -        Your Class B shares automatically convert to Class A shares.

   
         -        Class B shares of the Intermediate Bond Fund, the Income Bond
                  Fund, the Government Bond Fund, the High Yield Bond Fund and
                  the Bond Fund automatically convert to Class A shares after
                  eight years. Class B shares of the Ultra Short-Term Bond Fund,
                  the Short-Term Bond Fund, and the Treasury & Agency Fund
                  automatically convert to Class A shares after six years.
    

         -        Conversion periods are measured from the end of the month in
                  which the Class B shares were purchased.

         -        After conversion, your shares will be subject to the lower
                  distribution and shareholder servicing fees charged on Class A
                  shares.

         -        You will not be assessed any sales charges or fees for
                  conversion of shares, nor will you be subject to any Federal
                  income tax.

         -        Because the share price of the Class A shares may be higher
                  than that of the Class B shares at the time of conversion, you
                  may receive fewer Class A shares; however, the dollar value
                  will be the same.

         -        If you have exchanged Class B shares of one Fund for Class B
                  shares of another, the time you held the shares in each Fund
                  will be added together for purposes of calculating the six and
                  eight year time periods.

SALES CHARGES

   
The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from: sales charges, 12b-1 fees and
payments by The One Group Services Company from its own resources. Occasionally,
The One Group Services Company, at its own expense, also will provide cash
incentives to select Shareholder Servicing Agents. Those Shareholder Servicing
Agents who may receive special incentives include Banc One Securities
Corporation, The Advisors Group, United Planners Financial Services of America,
Inc., The Legend Group, and Rosewood Retirement Advisory Services, LLC. The One
Group Services Company pays additional compensation to Shareholder Servicing
Agents for sales of over $1 million dollars of Class A shares. Shareholder
Servicing Agents receive 1.00% of the purchase price of Class A shares for
sales of $1 million to $5 million, and 0.50% on amounts over $5 million.
    


                                       52
<PAGE>   167


CLASS A SHARES

   
If you buy Class A shares of the Short-Term Bond Fund, the Ultra Short-Term Bond
Fund and the Treasury & Agency Fund, the following table shows the amount of
sales charge and the commissions paid to Shareholder Servicing Agents.
    

<TABLE>
<CAPTION>
SALES CHARGE                     SALES CHARGE               COMMISSION
AS A % OF THE                      AS A % OF                 AS A % OF
AMOUNT OF PURCHASE              OFFERING PRICE            YOUR INVESTMENT              OFFERING PRICE
- ------------------              --------------            ---------------              --------------
<S>                             <C>                       <C>                          <C>
Less than $100,000                  3.00%                       3.09%                       2.70%
$100,000-$249,999                   2.50%                       2.56%                       2.18%
$250,000-$499,999                   2.00%                       2.04%                       1.64%
$500,000-$999,999                   1.50%                       1.52%                       1.20%
$1,000,000*                         0.00%                       0.00%                       0.00%
</TABLE>

   

* If you buy Class A shares of the Intermediate Bond Fund, the Income Bond Fund,
the Government Bond Fund, the High Yield Bond Fund and the Bond Fund the
following table shows the amount of sales charge and the commissions paid to
Shareholder Servicing Agents.
    

<TABLE>
<CAPTION>
SALES CHARGE                                        SALES CHARGE               COMMISSION
AS A % OF THE                                         AS A % OF                 AS A % OF
AMOUNT OF PURCHASE                                 OFFERING PRICE            YOUR INVESTMENT              OFFERING PRICE
- ------------------                                 --------------            ---------------              --------------
<S>                                                <C>                       <C>                         <C>
Less than $100,000                                     4.50%                       4.71%                       4.05%
$100,000-$249,999                                      3.50%                       3.63%                       3.05%
$250,000-$499,999                                      2.50%                       2.56%                       2.05%
$500,000-$999,999                                      2.00%                       2.04%                       1.60%
$1,000,000*                                            0.00%                       0.00%                       0.00%
</TABLE>

   
* If you purchase $1 million or more of Class A shares and are not assessed a
sales charge at the time of purchase, you will be charged the equivalent of 1%
of the purchase price if you redeem any or all of the Class A shares within one
year of purchase and 0.50% of the purchase amount if you redeem within two years
of purchase, unless The One Group Services Company receives notice before you
invest indicating that your Shareholder Servicing Agent is waiving its
commission.
    


CLASS B SHARES

   
Class B shares are offered at NAV, without any up-front sales charges. However,
if you redeem Class B shares of the INTERMEDIATE BOND FUND, the INCOME BOND
FUND, the GOVERNMENT BOND FUND, the HIGH YIELD BOND FUND or the BOND FUND before
the sixth anniversary of purchase, you will be assessed a Contingent Deferred
Sales Charge ("CDSC") according to the following schedule:
    

<TABLE>
<CAPTION>
CDSC AS A %
OF DOLLAR AMOUNT
YEARS SINCE PURCHASE                SUBJECT TO CHARGE
- --------------------                -----------------
<S>                                       <C>  
0-1                                       5.00%
1-2                                       4.00%
2-3                                       3.00%
3-4                                       3.00%
4-5                                       2.00%
5-6                                       1.00%
more than 6                               None
</TABLE>


                                       53
<PAGE>   168


   
Or if you redeem Class B shares of the ULTRA SHORT-TERM BOND FUND, the
SHORT-TERM BOND FUND or the TREASURY & AGENCY FUND prior to the fourth
anniversary of purchase, you will be assessed a CDSC according to the following
schedule:
    

<TABLE>
<CAPTION>
CDSC AS A %
OF DOLLAR AMOUNT
YEARS SINCE PURCHASE                SUBJECT TO CHARGE
- --------------------                -----------------
<S>                                       <C>  
0-1                                       3.00%
1-2                                       3.00%
2-3                                       2.00%
3-4                                       1.00%
more than 4                               None
</TABLE>

   
The One Group Services Company pays a commission of 4.00% of the original
purchase to Shareholder Servicing Agents who sell Class B shares of the
INTERMEDIATE BOND FUND, the INCOME BOND FUND, the GOVERNMENT BOND FUND, the HIGH
YIELD BOND FUND and the BOND FUND. Shareholder Servicing Agents who sell Class B
shares of the ULTRA SHORT-TERM BOND FUND, the SHORT-TERM BOND FUND and the
TREASURY & AGENCY FUND receive a commission of 2.75% from The One Group Services
Company.
    

CLASS C SHARES

Class C shares are offered at NAV, without any up-front sales charge. However,
if you redeem your shares within one year of the purchase date, you will be
assessed a CDSC as follows:

<TABLE>
<CAPTION>
                                  CDSC AS A % OF DOLLAR
YEARS SINCE PURCHASE            AMOUNT SUBJECT TO CHARGE
- --------------------            ------------------------
<S>                                       <C>  
0-1                                       1.00%
After first year                          None
</TABLE>

   
Shareholder Servicing Agents selling Class C shares receive a commission of
1.00% of the original purchase price from The One Group Services Company.
    

How the CDSC is Calculated

         -        The Fund assumes that all purchases made in a given month were
                  made on the first day of the month.

         -        The CDSC is based on the current market value or the original
                  cost of the shares, whichever is less.

         -        A sales charge is not imposed on increases in NAV above the
                  initial purchase price, nor is a sales charge assessed on
                  shares acquired through reinvestment of dividends or capital
                  gains distributions.

         -        To keep your CDSC as low as possible, the Fund first will
                  redeem any shares in your account that carry no CDSC, starting
                  with Class A shares. After that, the Fund will redeem the
                  shares you have held for the longest time and thus have the
                  lowest CDSC.

   
         -        If you exchange Class B or Class C shares of an unrelated
                  mutual fund for Class B or Class C shares of The Group in
                  connection with a fund reorganization, the CDSC applicable to
                  your original shares (including the period of time you have
                  held those shares) will be applied to The One Group shares you
                  receive in the reorganization.
    

12b-1 FEES

   
12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to Shareholder Servicing Agents that sell
shares of One Group.
    

                                       54
<PAGE>   169


         -        The 12b-1 fees vary by share class as follows:

         1.       Class A shares pay a 12b-1 fee of .35% of the average daily
                  net assets of the Fund, which is currently being waived to
                  .25%.

   
         2.       Class B and Class C shares pay a 12b-1 fee of 1.00% of the
                  average daily net assets of the Fund, which is currently being
                  waived to .90% for the Intermediate Bond Fund, the Income Bond
                  Fund, the Government Bond Fund, the High Yield Bond Fund and
                  the Bond Fund and to .75% for the Short-Term Bond Fund, the
                  Ultra Short-Term Bond Fund, and the Treasury & Agency Fund.
                  This will cause expenses for Class B and Class C shares to be
                  higher and dividends to be lower than for Class A shares.
    

         3.       There are no 12b-1 fees for Class I shares.

   
         -        12b-1 fees, together with the CDSC, help The One Group
                  Services Company sell Class B and Class C shares without an
                  "up-front" sales charge by defraying the costs of advancing
                  brokerage commissions and other expenses paid to Shareholder
                  Servicing Agents.

         -        The One Group Services Company may use up to .25% of the fees
                  for shareholder servicing and up to .75% for distribution. 
                  During the last fiscal year, The One Group Services Company 
                  received 12b-1 fees totaling .25% of the average daily net 
                  assets of the Class A shares of the Funds. In addition, The 
                  One Group Services Company received 12b-1 fees totaling .90% 
                  of the average daily net assets of the Class B shares of the
                  Intermediate Bond Fund, the Income Bond Fund, and the 
                  Government Bond Fund, and .75% for Class B shares of the 
                  Short-Term Bond Fund, the Ultra Short-Term Bond Fund, and the
                  Treasury & Agency Fund.

         -        The One Group Services Company may pay 12b-1 fees to its 
                  affiliates and to Banc One Investment Advisors and its
                  affiliates (or any sub-advisor) for brokerage and other agency
                  transactions.
    

SALES CHARGE REDUCTIONS AND WAIVERS

REDUCING YOUR CLASS A SALES CHARGES

There are several ways you can reduce the sales charges you pay on Class A
shares:

1.       Right of Accumulation: You may add the market value of any Class A,
         Class B or Class C shares of a Fund (except a money market fund) that
         you (and your spouse and minor children) already own to the amount of
         your next Class A purchase for purposes of calculating the sales
         charge. An Intermediary also may take advantage of this option.

2.       Letter of Intent: With an initial investment of $2,000, you may
         purchase Class A shares of one or more Funds over the next 13 months
         and pay the same sales charge that you would have paid if all shares
         were purchased at once. A percentage of your investment will be held in
         escrow until the full amount covered by the Letter of Intent has been
         invested.

   
To take advantage of the accumulation privilege or letter of intent, complete
the appropriate section of your fund application, or contact your Shareholder
Servicing Agent. To determine if you are eligible for the accumulation
privilege, contact The One Group Services Company at 1-800-480-4111. These
programs may be terminated or amended at any time.
    

WAIVER OF THE CLASS A SALES CHARGE

No sales charge is imposed on Class A shares of the Funds if the shares were:

1.       Bought with the reinvestment of dividends and capital gains
         distributions.

2.       Acquired in exchange for other Fund shares if a comparable sales charge
         has been paid for the exchanged shares.

3.       Bought by officers, directors or trustees, retirees and employees (and
         their spouses and immediate family members) of:


                                       55
<PAGE>   170

   
         -        One Group.
    

         -        BANK ONE CORPORATION and its subsidiaries and affiliates.

   
         -        The One Group Services Company and its subsidiaries and 
                  affiliates.
    

         -        State Street Bank and Trust Company and its subsidiaries and
                  affiliates.

   
         -        Broker/dealers who have entered into dealer agreements with
                  One Group and their subsidiaries and affiliates.

         -        An investment sub-advisor of a One Group Fund and such
                  sub-advisor's subsidiaries and affiliates.
    

4. Bought by:

         -        Affiliates of BANK ONE CORPORATION and certain accounts (other
                  than IRA Accounts) for which an Intermediary acts in a
                  fiduciary, advisory, agency, custodial or similar capacity.

   
         -        Accounts as to which a bank or broker-dealer charges an asset
                  allocation fee, provided the bank or broker-dealer has an
                  agreement with The One Group Services Company.

         -        Accounts which participate in select affinity programs with
                  BANK ONE CORPORATION and its subsidiaries and affiliates.
    

         -        Retirement and deferred compensation plans and trusts used to
                  fund those plans, including, but not limited to, those defined
                  in sections 401(a), 403(b) or 457 of the Internal Revenue Code
                  and "rabbi trusts."

   
         -        Shareholder Servicing Agents who have a dealer arrangement
                  with The One Group Services Company, who place trades for
                  their own accounts or for the accounts of their clients and
                  who charge a management, consulting or other fee for their
                  services, as well as clients of such Shareholder Servicing
                  Agents who place trades for their own accounts if the accounts
                  are linked to the master account of such Shareholder Servicing
                  Agent.

5.       Bought with proceeds from the sale of Class I shares of a One Group
         Fund or acquired in an exchange of Class I shares of a Fund for Class A
         shares of the same Fund, but only if the purchase is made within 60
         days of the sale or distribution.

6.       Bought with proceeds from the sale of shares of a mutual fund,
         including a One Group Fund, for which a sales charge was paid, but
         only if the purchase is made within 60 days of the sale or
         distribution.

7.       Bought in an IRA with the proceeds of a distribution from an employee
         benefit plan, but only if the purchase is made within 60 days of the
         sale or distribution and, at the time of the distribution, the employee
         benefit plan had plan assets invested in a One Group Fund.

8.       Bought with assets of One Group.
    

9.       Bought in connection with plans of reorganizations of a Fund, such as
         mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

The waivers described in (5), (6) and (7) above will not continue indefinitely
and may be discontinued at any time without notice.


                                       56
<PAGE>   171

WAIVER OF THE CLASS B SALES CHARGE

No sales charge is imposed on redemptions of Class B shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age
         701/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   
6.       Acquired in exchange for Class B shares of other One Group Funds.
    

WAIVER OF THE CLASS C SALES CHARGE

No sales charge is imposed on redemptions of Class C shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age
         701/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   
6.       Acquired in exchange for Class C shares of other One Group Funds.

7.       If The One Group Services Company receives notice before you invest
         indicating that your Shareholder Servicing Agent, due to the type of
         account that you have, is waiving their commission.

To take advantage of any of these sales charge waivers, you must qualify for
such waiver in advance of the purchase. To see if you qualify, contact The One
Group Services Company at 1-800-480-4111 or your Shareholder Servicing Agent.
    

EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

You may make the following exchanges:

   
- -        Class I shares of a Fund may be exchanged for Class A shares of that
         Fund or for Class A or Class I shares of another One Group Fund.
    

                                       57
<PAGE>   172

   
         -        Class A shares of a Fund may be exchanged for Class I shares
                  of that Fund or for Class A or Class I shares of another One
                  Group Fund, but only if you are eligible to purchase those
                  shares.

         -        Class B shares of a Fund may be exchanged for Class B shares
                  of another One Group Fund.

         -        Class C shares of a Fund may be exchanged for Class C shares
                  of another One Group Fund.

One Group offers a Systematic Exchange Privilege which allows you to
automatically exchange shares of one fund to another on a monthly or quarterly
basis. This privilege is useful in Dollar Cost Averaging. To participate in this
privilege, please select it on your account application. To learn more about it,
please call The One Group Services Company at 1-800-480-4111.

One Group does not charge a fee for this privilege. In addition, One Group may
change the terms and conditions of your exchange privileges upon 60 days written
notice.
    

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

         -        State Street Bank and Trust Company receives the request by
                  4:00 p.m., ET.

   
         -        You have provided One Group with all of the information
                  necessary to process the exchange.
    

         -        You have received a current prospectus of the Fund or Funds in
                  which you wish to invest.

         -        You have contacted your Shareholder Servicing Agent, if
                  necessary.

DO I PAY A SALES CHARGE ON AN EXCHANGE?

Generally, you will not pay a sales charge on an exchange. However:

         -        You will pay a sales charge if you own Class I shares of a
                  Fund and you want to exchange those shares for Class A shares,
                  unless you qualify for a sales charge waiver (see above).

         -        You will pay a sales charge if you bought Class A shares of a
                  Fund:

         1.       That do not charge a sales charge and you want to exchange
                  them for shares of a Fund that does, in which case you would
                  pay the sales charge applicable to the Fund into which you are
                  exchanging.

         2.       That charged a lower sales charge than the Fund into which you
                  are exchanging, in which case you would pay the difference
                  between that Fund's sales charge and all other sales charges
                  you have already paid.

         -        If you exchange Class B or Class C shares of a Fund, you will
                  not pay a sales charge at the time of the exchange, however:

         1.       Your new Class B or Class C shares will be subject to the
                  higher CDSC of either the Fund from which you exchanged, the
                  Fund into which you exchanged, or any Fund from which you
                  previously exchanged.

         2.       The current holding period for your exchanged Class B or Class
                  C shares is carried over to your new shares.

ARE EXCHANGES TAXABLE?

Generally:

                                       58
<PAGE>   173

         -        An exchange between classes of shares of the same Fund is not
                  taxable for Federal income tax purposes.

         -        An exchange between Funds is considered a sale and generally
                  results in a capital gain or loss for Federal income tax
                  purposes.

         -        You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short term movements in the market. Therefore:

   
         -        To prevent disruptions in the management of the Funds, One
                  Group limits excessive exchange activity.
    

         -        Exchange activity is excessive if it exceeds two substantive
                  exchange redemptions (within 30 days of each other) within a
                  twelve month period.

   
         -        In addition, One Group reserves the right to reject any
                  exchange request (even those that are not excessive) if the
                  Fund reasonably believes that the exchange will result in
                  excessive transaction costs or otherwise adversely affect
                  other shareholders.
    

REDEEMING FUND SHARES

WHEN CAN I REDEEM SHARES?

         -        You may redeem all or some of your shares on any day that the
                  Funds are open for business.

   
         -        Redemption requests received by The One Group Services Company
                  before 4:00 p.m. ET (or when the NYSE closes) will be
                  effective that day.
    

HOW DO I REDEEM SHARES?

         -        Unless you have selected the telephone option on your Account
                  Application Form, you must send a written redemption request
                  to your Shareholder Servicing Agent, if applicable, or to
                  State Street Bank and Trust Company at the following address:


                                       59
<PAGE>   174


   
         One Group
    
         c/o State Street Bank and Trust Company
         P.O. Box 8528
         Boston, MA 02266-8528

         -        All requests for redemptions from IRA accounts must be in
                  writing.

   
         -        You may request redemption forms by calling The One Group 
                  Services Company at 1-800-480-4111.
    

         -        State Street Bank and Trust Company may require that the
                  signature on your redemption request be guaranteed by a
                  commercial bank, a member of a domestic stock exchange, or a
                  member of the Securities Transfer Association Medallion
                  Program or the Stock Exchange Medallion Program, unless:

         1.       the redemption is for $50,000 worth of shares or less;

         2.       the redemption is payable to the shareholder of record;

         3.       the redemption check is mailed to the shareholder at the
                  record address; or

         4.       the redemption is payable by wire or bank transfer (ACH) to a
                  pre-existing bank account.

         -        On the Account Application Form you may elect to have the
                  redemption proceeds mailed or wired to:

         1.       a designated commercial bank; or

         2.       State Street Bank and Trust Company or your Shareholder
                  Servicing Agent.

         -        State Street Bank and Trust Company may charge you a wire
                  redemption fee. The current charge is $7.00.

         -        Your redemption proceeds will be paid within seven days after
                  receipt of the redemption request.

WHAT WILL MY SHARES BE WORTH?

         -        If you own Class A and Class I shares and the Fund receives
                  your redemption request by 4:00 p.m. ET (or when the NYSE
                  closes), you will receive that day's NAV.

         -        If you own Class B or Class C shares and the Fund receives
                  your redemption request by 4:00 p.m. ET (or when the NYSE
                  closes), you will receive that day's NAV, minus the amount of
                  any applicable CDSC.

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.

         -        Call your Shareholder Servicing Agent or State Street Bank and
                  Trust Company at 1-800-480-4111 to relay your redemption
                  request.

         -        Your redemption proceeds will be mailed or wired to the
                  commercial bank account you designated on your Account
                  Application Form.

         -        State Street Bank and Trust Company may charge you a wire
                  redemption fee. The current charge is $7.00.

   
         -        One Group uses reasonable procedures to confirm that 
                  instructions given by telephone are genuine. These procedures
                  include recording telephone instructions and asking for
                  personal identification. If these procedures are followed, One
                  Group will not be responsible for any loss, liability, cost or
                  expense of acting upon unauthorized or fraudulent
                  instructions; you bear the risk of loss.
    

                                       60
<PAGE>   175

         -        REDEMPTIONS FROM YOUR IRA ACCOUNT MAY NOT BE MADE BY
                  TELEPHONE.

CAN I REDEEM ON A SYSTEMATIC BASIS?

If you have an account value of at least $10,000, you may elect to receive
monthly, quarterly or annual payments of not less than $100 each.

         -        Select the "Systematic Withdrawal Plan" option on the Account
                  Application Form.

         -        Specify the amount you wish to receive and the frequency of
                  the payments.

         -        You may designate a person other than yourself as the payee.

         -        There is no charge for this service.

         -        If you select this option, please keep in mind that:

         1.       It may not be in your best interest to buy additional Class A
                  shares while participating in a Systematic Withdrawal Plan.
                  This is because Class A shares have an up-front sales charge.

         2.       If you own Class B or Class C shares, you or your designated
                  payee may receive systematic payments provided the payments
                  are limited to no more than 10% of your account value
                  annually, measured from the date the redemption request is
                  received.

         3.       If you are age 70 1/2, you may elect to receive payments to
                  the extent that the payment represents a minimum required
                  distribution from an IRA or other qualifying retirement plan.
                  These payments may be less than $100 each.

         4.       If the amount of the systematic payment exceeds the income
                  earned by your account since the previous payment under the
                  Systematic Withdrawal Plan, payments will be made by redeeming
                  some of your shares. This will reduce the amount of your
                  investment.

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

         -        All redemptions will be for cash.

   
         -        If you redeem shares for which you paid by check, and One 
                  Group has not yet received payment on the check, One Group
                  will delay forwarding your redemption proceeds for 10 or more
                  days until payment has been collected from your bank.

         -        Because of the high cost of handling small investments, One
                  Group charges a sub-minimum account fee. Accounts under
                  $1,000 that are not participating in a Systematic Investment
                  Plan will be assessed an annual fee of $10.00. The sub-minimum
                  account fee will not apply to IRA accounts and the accounts of
                  employees of BANK ONE CORPORATION and its affiliates.

         -        One Group may suspend your ability to redeem when:
    

         1.       Trading on the New York Stock Exchange ("NYSE") is restricted.

         2.       The NYSE is closed (other then weekend and holiday closings).

         3.       The SEC has permitted a suspension.

         4.       An emergency exists.

                                       61
<PAGE>   176

The Statement of Additional Information offers more details about this process.

         -        You generally will recognize a gain or loss on a redemption
                  for Federal income tax purposes. You should talk to your tax
                  advisor before making a redemption.

                                       62
<PAGE>   177

SHAREHOLDER INFORMATION

VOTING RIGHTS

The Funds do not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change a Fund's fundamental investment objective, or approve an
investment advisory contract.

As a Fund shareholder, you have one vote for each share that you own. Each Fund,
and each class of shares within each Fund, vote separately on matters relating
solely to that Fund or class, or which affect that Fund or class differently.
However, all shareholders will have equal voting rights on matters that affect
all shareholders equally.

   
BANK ONE CORPORATION (One First National Plaza, Chicago Illinois, 60670),
through its affiliates, may be deemed for purposes of the Investment Company Act
of 1940 to control the Funds. This is because as of December 1, 1998, BANK ONE
CORPORATION or its affiliates possessed the power to vote substantially all of
the Class I shares of the Funds.
    

On the same date, the following shareholders owned 25% or more of Class A, Class
B or Class C shares of the Funds. As a consequence, they are considered to be
controlling persons of these classes of the Funds listed below:


<TABLE>
<CAPTION>
   
NAME AND                                                                       PERCENTAGE OF       TYPE OF
ADDRESS                                            FUND/CLASS                  OWNERSHIP           OWNERSHIP
<S>                                                <C>                         <C>                 <C>
Strafe & Co                                        Income Bond Fund            88.46%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Strafe & Co                                        Short-Term                  90.40%              Record
BOIA - One Group Operations                        Bond Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Government Bond Fund        89.08%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Ultra Short Term Bond Fund  87.99%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp FBO                       Intermediate Bond Fund      53.06%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903
</TABLE>
    


                                       63


<PAGE>   178
   
<TABLE>
<CAPTION>
NAME AND                                                                       PERCENTAGE OF       TYPE OF
ADDRESS                                            FUND/CLASS                  OWNERSHIP           OWNERSHIP
<S>                                                <C>                         <C>                 <C>
Banc One Securities Corp FBO                       Intermediate Bond Fund      42.04%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Strafe & Co.                                       Intermediate Bond Fund      91.03%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Treasury & Agency Fund      99.86%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

The One Group Services Company                     High Yield Bond Fund        87.47%              Record
C/O Fund Administration                            Class A
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Services Company                     High Yield Bond Fund        86.96%              Record
C/O Fund Administration                            Class B
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth & Income Fund        High Yield Bond Fund        52.67%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth Fund                 High Yield Bond Fund        46.71%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004
    
</TABLE>


                                       64
<PAGE>   179

DIVIDEND POLICIES

DIVIDENDS

The Funds generally declare dividends on each business day. Dividends are
distributed on the first business day of each month. Capital gains, if any, for
all Funds are distributed at least annually. To maintain a relatively even rate
of distributions from the Treasury & Agency Fund, the monthly distributions for
that Fund may be fixed from time to time at rates consistent with Banc One
Investment Advisors' long-term earnings expectations.

Dividends payable on Class I shares will be more than those payable on other
classes of shares. This is because Class A, Class B and Class C shares have
higher distribution expenses.

The Funds pay dividends and distributions on a per-share basis. This means that
the value of your shares will be reduced by the amount of the payment. If you
purchase shares shortly before the record date for a dividend or the
distribution of capital gains, you will pay the full price for the shares and
receive some portion of the price back as a taxable dividend or distribution.

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund and class, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.





SPECIAL DIVIDEND RULES FOR CLASS B SHARES

Class B shares received as dividends and capital gains distributions will be
accounted for separately. Each time any Class B shares (other than those in the
sub-account) convert to Class A shares, a percentage of the Class B shares in
the sub-account will also convert to Class A shares. (See "Conversion Feature.")

TAX TREATMENT OF THE FUNDS

TAX STATUS OF THE FUND

Each Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Funds qualify, as they have in the past, they will
pay no federal income tax on the earnings they distribute to shareholders.

TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of Fund shares generally will produce either a
taxable gain or a loss. You are responsible for any tax liabilities generated by
your transactions.

TAXATION OF ZERO-COUPON SECURITIES

Some of the Funds may acquire certain securities issued with original issue
discount (including zero-coupon securities). Current Federal tax requires that a
holder (such as a Fund) of such a security must include in taxable income a
portion of the original issue discount which accrues during the tax year on such
security even if a Fund receives no payment in cash on the security during the
year. As an investment company, a Fund must pay out substantially all of its net
investment income each year, including any original issue discount. Accordingly,
a Fund may be required to pay out in income distribution each year

                                       65
<PAGE>   180


an amount which is greater than the total amount of cash interest a Fund
actually received. Such distributions will be made from the cash assets of a
Fund or by liquidation of investments if necessary. If a distribution of cash
necessitates the liquidation of investments, Banc One Investment Advisors or the
Sub-Adviser will select which securities to sell and a Fund may realize a gain
or loss from those sales. In the event a Fund realizes net capital gains from
these transactions, you may receive a larger capital gain distribution, if any,
than you would in the absence of such transactions.

TAXATION OF DISTRIBUTIONS

Each Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gains) on at least an
annual basis. Dividends you receive from a Fund, whether reinvested or received
in cash, will be taxable to you. Dividends from a Fund's net investment income
will be taxable as ordinary income and dividends from a Fund's long-term capital
gains will be taxable to you as such, regardless of how long you have held the
shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

TAXATION OF RETIREMENT PLANS

Distributions by the Funds to qualified retirement plans will not be taxable.
However, if shares are held by a plan that ceases to qualify for tax-exempt
treatment or by an individual who has received the shares as a distribution from
a retirement plan, the distributions will be taxable to the plan or individual
as described in "Taxation of Distributions." If you are considering purchasing
shares with qualified retirement plan assets, you should consult your tax
advisor for a more complete explanation of the Federal, state, local and (if
applicable) foreign tax consequences of making such an investment.

TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Funds provide you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Funds or their shareholders.

SHAREHOLDER INQUIRIES

   
If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.
    

REPORTING

   
In March and September you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.
    

ORGANIZATION AND MANAGEMENT OF THE FUNDS

FUND NAME

THE FUNDS

   
Each Fund is a series of One Group, an open-end management investment company.
One Group currently offers 49 separate Funds. Each Fund described in this
prospectus is diversified. Eight of the Funds are described in this prospectus;
the other Funds are described in separate prospectuses. Each Fund is supervised
by the Board of Trustees.
    

THE BOARD OF TRUSTEES

                                       66

<PAGE>   181

   
The Trustees oversee the management and administration of the Funds. The
Trustees are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Funds
to the officers of One Group.
    

THE ADVISOR

   
Banc One Investment Advisors makes the day-to-day investment decisions for the
Funds and continuously reviews, supervises and administers the Funds' investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets.
    

For the fiscal year ended June 30, 1998, the Funds paid investment advisory fees
at the following rates:

<TABLE>
<CAPTION>
                                                                                ANNUAL
                                                                                 RATE AS
                                                                              PERCENTAGE OF
                                                                              AVERAGE DAILY
                  FUND NAME                                                    NET ASSETS

   
<S>                                                                            <C>
                  One Group(R) Intermediate Bond Fund                             ____%*
                                                                                     
                  One Group(R) Income Bond Fund                                   ____%*
                  One Group(R) Government Bond Fund                                .44%
                                                        
                  One Group(R) Ultra Short-Term Bond Fund                          .21%
                  One Group(R) Short-Term Bond Fund                                .31%
                  One Group(R) Treasury & Agency Fund                              .20%
                  The One Group(R) Bond Fund                                      ____%*
                                                                                   
</TABLE>
*The predecessors to these Funds had December 31 year ends. The advisory fees 
 shown are as of December 31, 1998.
    

THE SUB-ADVISOR

Banc One High Yield Partners, LLC ("Banc One High Yield Partners") makes the
day-to-day investment decisions for the High Yield Bond Fund and administers the
Fund's investment program, subject to supervision by Banc One Investment
Advisors and the Trustees. Banc One High Yield Partners was formed in May, 1998
to provide investment advice related to high yield, high risk investments to the
High Yield Bond Fund and other advisory clients. Banc One High Yield Partners is
controlled by Banc One Investment Advisors and Pacholder Associates, Inc., an
investment advisory firm which specializes in high yield, high risk, fixed
income securities. Banc One High Yield Partners is entitled to a fee for its
services. The fee, which is equal to .70% of the Fund's average daily net
assets, is calculated daily and paid monthly. Banc One Investment Advisors pays
Banc One High Yield Partners' fee. Banc One High Yield Partners has agreed to
waive part of its fee. The fee waiver is voluntary and may be terminated at any
time.

BANC ONE HIGH YIELD PARTNERS--PRIOR PERFORMANCE OF PACHOLDER ASSOCIATES, INC.

Banc One High Yield Partners, the Sub-Advisor of the High Yield Bond Fund, was
formed as a limited liability company under an agreement between Banc One
Investment Advisors and Pacholder Associates, Inc. ("Pacholder"). Under the
Agreement, Pacholder is responsible for providing portfolio management services
on behalf of Banc One High Yield Partners for the High Yield Bond Fund.
Pacholder is also responsible for advising the Pacholder Fund, Inc., a
closed-end fund (the "Pacholder Fund") through a limited liability company known
as Pacholder & Company, LLC.(1)

The following table shows historical performance of the Pacholder Fund, a fund
with substantially similar investment objectives, policies, strategies and risks
to the High Yield Bond Fund as measured against a specified market index. THIS
INFORMATION IS PROVIDED TO SHOW THE PAST PERFORMANCE OF PACHOLDER IN MANAGING A
SUBSTANTIALLY SIMILAR FUND. THIS INFORMATION DOES NOT REPRESENT THE PERFORMANCE
OF THE HIGH YIELD BOND FUND. YOU SHOULD NOT CONSIDER THIS PERFORMANCE DATA AS AN
INDICATION OF FUTURE PERFORMANCE OF THE HIGH YIELD BOND FUND OR THE PACHOLDER
FUND.

- --------

1        Prior to August 21, 1998, Pacholder was responsible for advising the
         Pacholder Fund through a partnership known as Pacholder & Company.

                                       67
<PAGE>   182


With the exception of 1995, the expense ratio of the Pacholder Fund has been
higher than the projected expense ratio of High Yield Bond Fund. The expense
ratio has an impact on the total return that shareholders in the fund would
realize. Unlike the High Yield Bond Fund, the Pacholder Fund pays a performance
based investment advisory fee. With the exception of investment advisory fees
paid in 1991 and 1995, the Pacholder Fund's investment advisory fees have been
higher than the contractual advisory fees of the High Yield Bond Fund.

Unlike the High Yield Bond Fund, the Pacholder Fund is a closed-end fund that
has issued both common and preferred stock. Holders of preferred stock in the
Pacholder Fund are entitled to fixed rate distributions. The first column shows
the NAV return realized by holders of common shares in the Pacholder Fund after
distributions were made to preferred shareholders. The second column shows the
NAV return that would have been realized if preferred shares had not been
issued. The third column compares the performance of the Pacholder Fund to a
specified market index.
   
    


                                       68
<PAGE>   183


PACHOLDER FUND HISTORICAL PERFORMANCE(1)

<TABLE>
<CAPTION>
                                                                           TOTAL RETURN ASSUMING
                                                                            COMMON STOCK IS
                                                     COMMON                   NOT LEVERAGED
                                                  SHAREHOLDERS'             THROUGH ISSUANCE             CS FIRST BOSTON
                                                 RETURN BASED ON              OF PREFERRED                 HIGH YIELD
                                                     NAV(2)                     STOCK(3)                      INDEX
                                                     ------                     --------                      -----
<S>                                                      <C>                  <C>                         <C>  
1989(4)                                                     NA                   NA
1990                                                    -0.87%                   -0.87%(2)(5)                   -6.38%
1991                                                    36.71%                   36.71%(2)(5)                   43.75%
1992                                                    18.78%                   19.38%                         16.66%
1993                                                    20.27%                   18.40%                         18.91%
1994                                                     0.72%                    2.21%                         -0.97%
1995                                                    10.68%                   10.41%                         17.38%
1996                                                    20.40%                   16.63%                         12.42%
1997                                                    15.44%                   12.00%                         12.63%
1/1/98-9/30/98                                          -6.61%                   -3.32%                         -2.10%
1 YR Average Annual Return(6)                           -5.50%                   -2.06%                         -0.52%
3 YR Average Annual Return(6)                            9.15%                    8.36%                          8.44%
5 YR Average Annual Return(6)                            8.51%                    8.11%                          8.51%
Average Annual Return since
  1990(4)(6)                                            12.49%                   12.16%                         11.97%
</TABLE>

(1)      Performance information is provided net of Fund expenses. The net
         investment performance represents total return, assuming reinvestment
         of all dividends and proceeds from capital transactions.

(2)      Return to holders of common shares of the Pacholder Fund after
         distribution of dividends to preferred shareholders. Performance was
         derived using the method for calculating the total return of a
         closed-end fund as required by SEC Form N-2. The returns through
         December 31, 1997 were audited by the Pacholder Fund's independent
         auditor in conjunction with the audit of the Pacholder Fund.

(3)      Adjusts total return to show what shareholders would have received if
         the Pacholder Fund's common stock was not leveraged through the
         issuance of preferred stock. Assumes no distribution of dividends to
         preferred shareholders and that all shareholders in the Pacholder Fund
         hold common stock. The net investment performance has been computed in
         accordance with the Performance Presentation Standards established by
         the Association for Investment Management and Research ("AIMR-PPS"),
         but has not been verified by an entity independent of Banc One
         Investment Advisors and Pacholder.

(4)      The Pacholder Fund commenced operation on November 23, 1988. However,
         the Pacholder Fund was not managed with substantially similar
         investment objectives to the High Yield Bond Fund in 1988 and 1989.

(5)      No preferred stock was issued prior to April 6, 1992.

(6)      For period ended September 30, 1998.

THE DISTRIBUTOR

   
The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Funds and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.
    

                                       69
<PAGE>   184


THE ADMINISTRATOR AND SUB-ADMINISTRATOR

   
The One Group Services Company also serves as the Funds' administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory reporting and
compliance. For these services, The One Group Services Company receives a fee
based on the total assets of One Group. For the first $1.5 billion in One Group
assets, The One Group Services Company receives an annual fee of .20% of each
Fund's average daily net assets. The annual rate declines to .18% on assets up
to $2 billion, and to .16% when assets exceed $2 billion. The fee is calculated
daily and paid monthly. Some Funds are not included in the calculations.
    

Banc One Investment Advisors, the Sub-Administrator, provides office space,
equipment and facilities, as well as legal and regulatory support.

THE TRANSFER AGENT, CUSTODIAN AND SUB-CUSTODIAN

State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528, or
your Shareholder Servicing Agent if appropriate, handles shareholder
recordkeeping and statements, distributes dividends, and processes buy and sell
requests. As the Funds' custodian, State Street holds the Funds' assets, settles
all portfolio trades and assists in calculating the Funds' net asset values.
Bank One Trust Company, N.A. serves as sub-custodian in connection with the
Funds' securities lending activities under an agreement with State Street Bank
and Trust Company, Bank One Trust Company, N.A. is paid a fee paid by the Funds
for this service.

YEAR 2000

   
Preparing for the Year 2000 is a high priority for One Group. Both One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
One Group. Year 2000 remediation efforts are directed toward both information
technology and non-information technology systems. Non-information technology
systems include elevators, photocopy machines, and facsimile machines, and
should have no significant impact on the delivery of services to One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.

Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.

Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipates that the move to Year 2000 will have a material impact on
their ability to continue to provide the Funds with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.
    


                                       70
<PAGE>   185


DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The Funds invest in a variety of securities and employ a number of investment
techniques. Each security and technique involves certain risks. What follows is
a list of the securities and techniques utilized by the Funds, as well as the
risks inherent in their use. Fixed income securities are primarily influenced by
market, credit and prepayment risks, although certain securities may be subject
to additional risks. For a more complete discussion, see the Statement of
Additional Information. Following the table is a more complete discussion of
risk.



<TABLE>
<CAPTION>
FUND NAME                                                          FUND CODE
<S>                                                                <C>
   
One Group(R) Intermediate Bond Fund                                       1
One Group(R) Income Bond Fund                                             2
One Group(R) Government Bond Fund                                         3
One Group(R) Ultra Short-Term Bond Fund                                   4
One Group(R) Short-Term Bond Fund                                         5
One Group(R) Treasury & Agency Fund                                       6
One Group(R) High Yield Bond Fund                                         7
One Group(R) Bond Fund                                                    8
    
</TABLE>
<TABLE>
<CAPTION>

INSTRUMENT                                                                      FUND CODE                   RISK TYPE
- ----------                                                                      ---------                   ---------
<S>                                                                             <C>                         <C>
U.S. TREASURY OBLIGATIONS: Bills, notes, bonds,
   
STRIPS, and CUBES.                                                                 1-8                        Market

TREASURY RECEIPTS: TRs, TIGRs, and CATS.                                           1-8                        Market

U.S. GOVERNMENT AGENCY SECURITIES: Securities                                      1-8                        Market
issued by agencies and instrumentalities                                                                      Credit
of the U.S. Government. These include
    
Ginnie Mae, Fannie Mae, and Freddie Mac.

   
CERTIFICATES OF DEPOSIT: Negotiable                                            1,2,4,5,7,8                    Market
instruments with a stated maturity.                                                                           Credit
    
                                                                                                             Liquidity

   
TIME DEPOSITS: Non-negotiable receipts issued                                  1,2,4,5,7,8                    Market
    
by a bank in exchange for the deposit of                                                                     Liquidity
funds.                                                                                                        Credit

   
REPURCHASE AGREEMENTS: The purchase of a                                           1-8                        Credit
security and the simultaneous commitment to                                                                   Market
return the security to the seller at an                                                                      Liquidity
    
agreed upon price on an agreed upon date.
This is treated as a loan.

   
REVERSE REPURCHASE AGREEMENT: The sale of a                                        1-8                        Market
security and the simultaneous commitment to                                                                  Leverage
    
buy the security back at an agreed upon price
on an agreed upon date. This is treated as
a borrowing by a Fund.

   
SECURITIES LENDING: The lending of up to 33                                        1-8                        Credit
1/3% of the Fund's total assets. In return                                                                    Market
the Fund will receive cash, other securities,                                                                Leverage
    
and/or letters of credit as collateral.
</TABLE>

                                       71

<PAGE>   186

<TABLE>
<CAPTION>
INSTRUMENT                                                                      FUND CODE                   RISK TYPE
- ----------                                                                      ---------                   ---------
<S>                                                                             <C>                         <C>
   
WHEN-ISSUED SECURITIES AND FORWARD                                                 1-8                        Market 
 COMMITMENTS: Purchase or contract to                                                                        Leverage
purchase securities at a fixed price for                                                                     Liquidity
delivery at a future date.                                                                                    Credit

INVESTMENT COMPANY SECURITIES: Shares of other                                     1-8                        Market
mutual funds, including One Group money market 
funds  and shares of other investment
companies for which Banc One Investment
Advisors serves as investment advisor or
administrator. The Treasury & Agency Fund
and the Government Bond Fund will
only purchase shares of investment
companies which invest exclusively in U.S.
Treasury and other U.S. agency obligations.
Banc One Investment Advisors will waive certain
fees when investing in funds for which it
serves as investment advisor.

CONVERTIBLE SECURITIES: Bonds or preferred                                      1,2,4,7,8                     Market
stock that convert to common stock.                                                                           Credit

CALL AND PUT OPTIONS: A call option gives the                                    1-4,7,8                    Management
buyer the right to buy, and obligates the                                                                    Liquidity
seller of the option to sell, a security at                                                                   Credit
a specified price. A put option gives the                                                                     Market
buyer the right to sell, and obligates the                                                                   Leverage
seller of the option to buy, a security at
a specified price. The Funds will sell
covered call and secured put options.

FUTURES AND RELATED OPTIONS: A contract                                          1-5,8                      Management
providing for the future sale and purchase                                                                    Market
of a specified amount of a specified security,                                                                Credit
class of securities, or an index at a                                                                        Liquidity
specified time in the future and at a                                                                        Leverage
    
specified price.

REAL ESTATE INVESTMENT TRUSTS ("REITS"): Pooled                                    2,7                       Liquidity
investment vehicles which invest primarily in                                                               Management
income producing real estate or real estate                                                                   Market
related loans or interest.                                                                                  Pre-payment
                                                                                                                Tax
                                                                                                            Regulatory

   
BANKERS' ACCEPTANCES: Bills of exchange or                                     1,2,4,5,7,8                    Credit
time drafts drawn on and accepted by a                                                                       Liquidity
commercial bank. Maturities are generally                                                                     Market
six months or less.

COMMERCIAL PAPER: Secured and unsecured                                        1,2,4,5,7,8                    Credit
short-term promissory notes issued by                                                                        Liquidity
corporations and other entities.                                                                              Market
Maturities generally vary from a few
days to nine months.
    
</TABLE>


                                       72
<PAGE>   187

<TABLE>
<CAPTION>
INSTRUMENT                                                                      FUND CODE                    RISK TYPE
- ----------                                                                      ---------                    ---------
<S>                                                                            <C>                          <C>
   
FOREIGN SECURITIES: Debt issued by foreign                                     1,2,4,5,7,8                    Market
governments, foreign corporations, domestic                                                                  Political
subsidiaries of foreign corporations, and                                                                    Liquidity
foreign banks, as well as commercial paper                                                                  Investment
of foreign issuers and obligations of foreign
banks and overseas branches of U.S. foreign
banks and of foreign issuers and supranational
entities. The High Yield Bond Fund also may
purchase equity securities issued by the
entities listed above.
    

   
RESTRICTED SECURITIES: Securities not                                          1,2,4,5,7,8                   Liquidity
registered under the Securities Act of                                                                        Market
1933, such as privately placed commercial                                                                     Credit
    
paper and Rule 144A securities.

   
VARIABLE AND FLOATING RATE INSTRUMENTS:                                            1-8                        Market
Obligations with interest rates which are                                                                     Credit
reset daily, weekly, quarterly or some                                                                       Liquidity
    
other period and which may be payable to
the Fund on demand. The Treasury & Agency
Fund will invest in these securities only
if they are issued by the U.S. Treasury
or another U.S. Government Agency.

WARRANTS: Securities, typically issued                                            2, 7                        Market
with preferred stock or bonds that give                                                                       Credit
the holder the right to buy a
proportionate amount of common stock at
a specified price.

   
PREFERRED STOCK: A class of stock that                                         1,2,4,5,7,8                    Market
generally pays a dividend at a specified
    
rate and has preference over common stock
in the payment of dividends and in liquidation.

   
MORTGAGE-BACKED SECURITIES: Debt obligations                                       1-8                      Pre-payment
secured by real estate loans and pools of                                                                     Market
loans. These include collateralized mortgage                                                                  Credit
obligations ("CMOs") and Real Estate Mortgage                                                               Regulatory
Investment Conduits ("REMICs").
    

   
CORPORATE DEBT SECURITIES: Corporate bonds                                     1,2,4,5,7,8                    Market
and non-convertible debt securities.                                                                          Credit

Demand Features: Securities that are subject                                   1,2,4,5,7,8                   Market
to puts and standby commitments to purchase                                                                 Liquidity
the securities at a fixed price (usually                                                                   Management
with accrued interest) within a fixed
    
period of time following demand by a Fund.

   
ASSET-BACKED SECURITIES: Securities secured                                    1,2,4,5,7,8                 Pre-payment
by company receivables, home equity loans                                                                    Market
truck and auto loans, leases, credit card                                                                    Credit
receivables and other securities backed                                                                    Regulatory
    
by other types of receivables or other
assets.
</TABLE>


                                       73
<PAGE>   188


<TABLE>
<CAPTION>
INSTRUMENT                                                                      FUND CODE                   RISK TYPE
- ----------                                                                      ---------                   ---------
<S>                                                                                <C>                     <C>
   

MORTGAGE DOLLAR ROLLS: A transaction in                                            1-8                      Pre-payment
which a Fund sells securities for                                                                             Market
delivery in a current month and                                                                             Regulatory
simultaneously contracts with the
same party to repurchase similar
but not identical securities on a
specified future date.
    

   
ADJUSTABLE RATE MORTGAGE LOANS ("ARMS"):                                           1-8                      Pre-payment
Loans in a mortgage pool which provide                                                                        Market
for a fixed initial mortgage interest                                                                         Credit
rate for a specified period of time,                                                                        Regulatory
after which the rate may be subject to
periodic adjustments. The Treasury &
Agency Fund will only buy ARMs
issued by U.S. government entities.


SWAPS, CAPS AND FLOORS: A Fund may enter                                        1-4,5,7,8                   Management
into these transactions to manage its                                                                         Credit
exposure to changing interest rates and                                                                      Liquidity
other factors. Swaps involve an exchange                                                                      Market
of obligations by two parties. Caps and 
floors entitle a purchaser to a
principal amount from the seller of the cap 
or floor to the extent that a
specified index exceeds or falls below a 
predetermined interest rate or amount.
    



   
NEW FINANCIAL PRODUCTS: New options and                                          1-5,7,8                    Management
futures contracts and other financial                                                                         Credit
products continue to be developed and the                                                                     Market
Fund may invest in such options, contracts                                                                   Liquidity
    
and products.

   
STRUCTURED INSTRUMENTS: Debt securities issued                                     1-8                        Market
by agencies and instrumentalities of the U.S.                                                                Liquidity
government, banks, municipalities, corporations                                                             Management
and other businesses whose interest and/or                                                                    Credit
principal payments are indexed to foreign                                                                Foreign currency
interest rates, or one or more other                                                                        Investment
referenced indices.
    

   
MUNICIPAL SECURITIES: Securities issued by a                                   1,2,4,5,7,8                    Credit
state or political subdivision to obtain                                                                     Political
funds for various public purposes Municipal                                                                     Tax
securities include private activity bonds                                                                     Market
and industrial development bonds, as well                                                                   Regulatory
as General Obligation Notes, Anticipation
Notes, Bond Tax Anticipation Notes, Revenue
Anticipation Notes, Project Notes, other
short-term tax-exempt obligations, municipal
leases, and obligations of municipal housing
authorities and single family revenue bonds.
    
</TABLE>


                                       74
<PAGE>   189



   
<TABLE>
<CAPTION>
INSTRUMENT                                                                      FUND CODE                    RISK TYPE
- ----------                                                                      ---------                    ---------
<S>                                                                             <C>                        <C>
ZERO COUPON DEBT SECURITIES: Bonds and other                                       1-8                        Credit
debt that pay no interest, but are issued at                                                                  Market
a discount from their value at maturity. When                                                               Zero Coupon
held to maturity, their entire return equals 
the difference between their issue
price and their maturity value.

ZERO-FIXED-COUPON DEBT SECURITIES: Zero coupon                                     1-8                        Credit
debt securities which convert on a specified                                                                  Market
date to interest bearing debt securities.                                                                   Zero Coupon

STRIPPED MORTGAGE-BACKED SECURITIES: Derivative                                  1-5,7,8                    Pre-payment
multi-class mortgage securities usually                                                                       Market
structured with two classes of shares                                                                         Credit
that receive different proportions of the                                                                   Regulatory
interest and principal from a pool of
mortgage-backed obligations. These include
only invests in Stripped Mortgage-Backed Securities
issued or guaranteed by the U.S. government, its
agencies or instrumentalities.

INVERSE FLOATING RATE INSTRUMENTS: Leveraged                                     1-5,7,8                      Market
variable rate debt instruments with interest                                                                 Leverage
rates that reset in the opposite direction                                                                    Credit
from the market rate of interest to which
the inverse floater is indexed.

LOAN PARTICIPATIONS AND ASSIGNMENTS:                                           1,2,4,5,7,8                    Credit
Participations in, or assignments of all                                                                     Political
or a portion of loans to corporations or                                                                     Liquidity
to governments, including governments of                                                                      Foreign
the less developed countries ("LDC's").                                                                     Investment
                                                                                                              Market

FIXED RATE MORTGAGE LOANS: Investments in                                          1-8                        Credit
fixed rate mortgage loans or mortgage pools                                                                 Pre-payment
which bear simple interest at fixed annual                                                                  Regulatory
rates and have short to long term final                                                                       Market
maturities.

SHORT-TERM FUNDING AGREEMENTS: Investments                                     1,2,4,5,7,8                   Credit
in short-term funding agreements issued by                                                                  Liquidity
banks and highly rated U.S. insurance                                                                        Market
companies such as Guaranteed Investment
Contracts ("GIC's") and Bank Investment
Contracts ("BIC's").


</TABLE>
    

                                       75

<PAGE>   190
COMMON STOCK: Shares of ownership of a company.       7                Market


INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities held by the Funds may fluctuate, as will the value of
your investment in the Funds. Certain investments are more susceptible to these
risk than others.

   
         -        CREDIT RISK. The risk that the issuer of a security, or the
                  counterparty to a contract, will default or otherwise become
                  unable to honor a financial obligation. Credit risk is
                  generally higher for non-investment grade securities. The
                  price and liquidity of a security can be adversely affected
                  prior to actual default as its credit status deteriorates and
                  the probability of default rises.
    

         -        LEVERAGE RISK. The risk associated with securities or
                  practices (such as borrowing) that multiply small index or
                  market movements into large changes in value. Leverage is
                  often associated with investments in derivatives, but also may
                  be embedded directly in the characteristics of other
                  securities.

         -        HEDGED. When a derivative (a security whose value is based on
                  another security or index) is used as a hedge against an
                  opposite position that the fund also holds, any loss generated
                  by the derivative should be substantially offset by gains on
                  the hedged investment, and vice versa. While hedging can
                  reduce or eliminate losses, it can also reduce or eliminate
                  gains. Hedges are sometimes subject to imperfect matching
                  between the derivative and underlying security, and there can
                  be no assurance that a Fund's hedging transactions will be
                  effective.

         -        SPECULATIVE. To the extent that a derivative is not used as a
                  hedge, the fund is directly exposed to the risks of that
                  derivative. Gains or losses from speculative positions in a
                  derivative may be substantially greater than the derivative's
                  original cost.

         -        LIQUIDITY RISK. The risk that certain securities may be
                  difficult or impossible to sell at the time and the price that
                  would normally prevail in the market. The seller may have to
                  lower the price, sell other securities instead or forego an
                  investment opportunity, any of which could have a negative
                  effect on fund management or performance. This includes the
                  risk of missing out on an investment opportunity because the
                  assets necessary to take advantage of it are tied up in less
                  advantageous investments.

         -        MANAGEMENT RISK. The risk that a strategy used by a fund's
                  management may fail to produce the intended result. This
                  includes the risk that changes in the value of a hedging
                  instrument will not match those of the asset being hedged.
                  Incomplete matching can result in unanticipated risks.

         -        MARKET RISK. The risk that the market value of a security may
                  move up and down, sometimes rapidly and unpredictably. These
                  fluctuations may cause a security to be worth less than the
                  price originally paid for it, or less than it was worth at an
                  earlier time. Market risk may affect a single issuer,
                  industry, sector of the economy or the market as a whole.
                  There is also the risk that the current interest rate may not
                  accurately reflect existing market rates. For fixed income
                  securities, market risk is largely, but not exclusively,
                  influenced by changes in interest rates. A rise in interest
                  rates typically causes a fall in values, while a fall in rates
                  typically causes a rise in values. Finally, key information
                  about a security or market may be inaccurate or unavailable.
                  This is particularly relevant to investments in foreign
                  securities.

         -        POLITICAL RISK. The risk of losses attributable to unfavorable
                  governmental or political actions, seizure of foreign
                  deposits, changes in tax or trade statutes, and governmental
                  collapse and war.

         -        FOREIGN INVESTMENT RISK. The risk associated with higher
                  transaction costs, delayed settlements, currency controls and
                  adverse economic developments. This includes the risk that
                  fluctuations in the exchange rates between the U.S. dollar and
                  foreign currencies may negatively affect an investment.
                  Adverse changes in 


                                       76
<PAGE>   191



                  exchange rates may erode or reverse any gains produced by
                  foreign currency denominated investments and may widen any
                  losses. Exchange rate volatility also may affect the ability
                  of an issuer to repay U.S. dollar denominated debt, thereby
                  increasing credit risk.

         -        PRE-PAYMENT RISK. The risk that the principal repayment of a
                  security will occur at an unexpected time, especially that the
                  repayment of a mortgage or asset-backed security occurs either
                  significantly sooner or later than expected. Changes in
                  pre-payment rates can result in greater price and yield
                  volatility. When mortgage and other obligations are pre-paid,
                  a Fund may have to reinvest in securities with a lower yield.
                  Further, with early prepayment, a Fund may fail to recover any
                  premium paid, resulting in an unexpected capital loss.

         -        TAX RISK. The risk that the issuer of the securities will fail
                  to comply with certain requirements of the Internal Revenue
                  Code, which would cause adverse tax consequences.

         -        REGULATORY RISK. The risk associated with Federal and state
                  laws which may restrict the remedies that a lender has when a
                  borrower defaults on loans. These laws include restrictions on
                  foreclosures, redemption rights after foreclosure, Federal and
                  state bankruptcy and debtor relief laws, restrictions on "due
                  on sale" clauses, and state usury laws.

         -        ZERO COUPON RISK. The risk associated with changes in interest
                  rates. The market prices of securities structured as zero
                  coupon or pay-in-kind securities are generally affected to a
                  greater extent by interest rate changes. These securities tend
                  to be more volatile than securities which pay interest
                  periodically. This risk is similar to Market Risk, which is
                  described above.

INVESTMENT POLICIES

   
Each Fund's investment objective and the investment policies summarized below
are fundamental. This means that they cannot be changed without the consent of a
majority of the outstanding shares of the Funds. In addition to the fundamental
policies mentioned earlier, the following fundamental policies apply to each
Fund as specified. The full text of the fundamental policies can be found in the
Statement of Additional Information.
    

Each Fund may not:

1.       Purchase the securities of an issuer if as a result more than 5% of its
         total assets would be invested in the securities of that issuer or the
         Fund would own more than 10% of the outstanding voting securities of
         that issuer. This does not include securities issued or guaranteed by
         the United States, its agencies or instrumentalities, securities of
         registered investment companies, and repurchase agreements involving
         these securities. This restriction applies with respect to 75% of a
         Fund's total assets.

2.       Concentrate their investment in the securities of one or more issuers
         conducting their principal business in a particular industry or group
         of industries. This does not include obligations issued or guaranteed
         by the U.S. Government or its agencies and instrumentalities and
         repurchase agreements involving such securities.

3.       Make loans, except that a Fund may
         (i)   purchase or hold debt instruments in accordance with its 
               investment objective and policies; 
         (ii)  enter into repurchase agreements; and
         (iii) engage in securities lending.

Additional investment policies are set forth in the Statement of Additional
Information.

TEMPORARY DEFENSIVE POSITION

For temporary defensive purposes as determined by Banc One Investment Advisors
or the Sub-Advisor, the Funds may invest up to 100% of their assets in money
market instruments, and may hold a portion of their assets in cash for liquidity
purposes. While the Funds are engaged in a temporary defensive position, they
will not be pursuing their investment objectives. Therefore, the Funds will
pursue a temporary defensive position only when market conditions warrant.


                                       77
<PAGE>   192

PORTFOLIO TURNOVER

Portfolio turnover may vary greatly from year to year, as well as within a
particular year. Higher portfolio turnover rates will likely result in higher
transaction costs to the Funds and may result in additional tax consequences to
you. The portfolio turnover rate for each Fund for the fiscal year ended June
30, 1998 is shown on the Financial Highlights. The estimated portfolio turnover
rate for the High Yield Bond Fund will not exceed 100%. To the extent portfolio
turnover results in short-term capital gains, such gains will generally be taxed
at ordinary income tax rates.

                                       78
<PAGE>   193


APPENDIX

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors or a Sub-Advisor determines that such securities
are the equivalent of investment grade securities. Securities that have received
different ratings from more than one agency are considered investment grade if
at least one agency has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

         D-1+     Highest certainty of timely payment. Short-term liquidity,
                  including internal operating factors and/or access to
                  alternative sources of funds, is outstanding and safety is
                  just below risk-free U.S. Treasury obligations.

         D-1      Very high certainty of timely payment. Liquidity factors are
                  excellent and supported by good fundamental protection 
                  factors. Risk factors are minor.

         D-1-     High certainty of timely payment. Liquidity factors are 
                  strong and supported by good fundamental protection factors. 
                  Risk factors are very small.

   
         D-2      Good certainty of timely payment. Liquidity facts and company
                  fundamentals are sound. Although ongoing funding needs may
                  enlarge total financing requirements, access to capital
                  markets is good. Risk factors are small.
    

         D-3      Satisfactory liquidity and other protection factors qualify
                  issues as to investment grade. Risk factors are larger and
                  subject to more variation. Nevertheless, timely payment is
                  expected.

         D-4      Speculative investment characteristics. Liquidity is not
                  sufficient to insure against disruption in debt service.
                  Operating factors and market access may be subject to a high
                  degree of variation.

         D-5      Issuer failed to meet scheduled principal and/interest 
                  payments.

STANDARD & POOR'S CORPORATION ("S&P")

         A-1      Highest category of commercial paper. Capacity to meet
                  financial commitment is strong. Obligations designated with a
                  plus sign (+) indicate that capacity to meet financial
                  commitment is extremely strong.

         A-2      Issues somewhat more susceptible to adverse effects of changes
                  in circumstances and economic conditions than obligations in
                  higher rating categories. However, the capacity to meet
                  financial commitments is satisfactory.

         A-3      Exhibits adequate protection parameters. However, adverse
                  economic conditions or changing circumstances are more likely
                  to lead to a weakened capacity of the obligor to meet its
                  financial commitment on the obligation.

         B        Regarded as having significant speculative characteristics.
                  The obligor currently has the capacity to meet its financial
                  commitment on the obligation; however, it faces major ongoing
                  uncertainties which could lead to the obligor's inadequate
                  capacity to meet its financial commitment on the obligation.

         C        Currently vulnerable to nonpayment and is dependent upon
                  favorable business, financial, and economic conditions for the
                  obligor to meet its financial commitment on the obligation.

                                       79
<PAGE>   194

         D        In payment default. The D rating category is used when
                  payments on an obligation are not made on the date due even if
                  the applicable grace period has not expired, unless Standard &
                  Poor's believes that such payments will be made during such
                  grace period. The D rating also will be used upon the filing
                  of a bankruptcy petition or the taking of a similar action if
                  payments on an obligation are jeopardized.

FITCH'S IBCA, INC. ("FITCH")

         F1       Highest capacity for timely repayment. Those issues rated F1+
                  possess a particularly strong credit feature.

         F2       Satisfactory capacity for timely repayment although such
                  capacity may be susceptible to adverse changes in business,
                  economic or financial conditions.

   
         F3       Adequate capacity for timely repayment, but more susceptible
                  to adverse changes in business, economic or financial
                  conditions than for obligations in higher categories.
    

         B        Capacity for timely repayment is susceptible to adverse
                  changes in business, economic or financial conditions.

         C        High risk of default or which are currently in default.

MOODY'S INVESTORS SERVICE ("MOODY'S")

PRIME-1           Superior ability for repayment.

PRIME-2           Strong ability for repayment.

PRIME-3           Acceptable ability for repayment. The effect of industry
                  characteristics and market compositions may be more
                  pronounced. Variability in earnings and profitability may
                  result in changes in the level of debt protection measurements
                  and may require relatively high financial leverage. Adequate
                  alternate liquidity is maintained.

NOT PRIME         Does not fall within any of the Prime rating categories.


DESCRIPTION OF BANK RATINGS

MOODY'S

These ratings represent Moody's opinion of a bank's intrinsic safety and
soundness.

         A        These banks possess exceptional intrinsic financial strength.
                  Typically they will be major financial institutions with
                  highly valuable and defensible business franchises, strong
                  financial fundamentals, and a very attractive and stable
                  operating environment.

         B        These banks possess strong intrinsic financial strength.
                  Typically, they will be important institutions with valuable
                  and defensible business franchises, good financial
                  fundamentals, and an attractive and stable operating
                  environment.

         C        These banks possess good intrinsic financial strength.
                  Typically, they will be institutions with valuable and
                  defensible business franchises. These banks will demonstrate
                  either acceptable financial fundamentals within a stable
                  operating environment, or better than average financial
                  fundamentals within an unstable operating environment.

         D        These banks possess adequate financial strength, but may be
                  limited by one or more of the following factors: a vulnerable
                  or developing business franchise; weak financial fundamentals;
                  or an unstable operating environment.

                                       80
<PAGE>   195


         E        These banks possess very weak intrinsic financial strength,
                  require periodic outside support or suggest an eventual need
                  for outside assistance. Such institutions may be limited by
                  one or more of the following factors: a business franchise of
                  questionable value; financial fundamentals that are seriously
                  deficient in one or more respects; or a highly unstable
                  operating environment.

DESCRIPTION OF TAXABLE BOND RATINGS

S&P

S&P's credit rating is a current opinion of an obligor's overall financial
capacity (its creditworthiness) to pay its financial obligation.

         AAA      The highest rating assigned by S&P. The obligor's capacity to
                  meet its financial commitment on the obligation is extremely
                  strong.

         AA       The obligor's capacity to meet its financial commitments on
                  the obligation is very strong.

         A        The obligation is somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than obligations in higher rated categories. However, the
                  obligor's capacity to meet its financial commitment on the
                  obligation is still strong.

         BBB      Exhibits adequate protection parameters. However, adverse
                  economic conditions or changing circumstances are more likely
                  to lead to a weakened capacity of the obligor to meet its
                  financial commitment on the obligation.

Obligations rated BB, B, CCC, CC, and C are regarded as having significant
speculative characteristics. BB indicates the least degree of speculation and C
the highest. While such obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties or major
exposures to adverse conditions.

         BB       Less vulnerable to nonpayment than other speculative issues.
                  However, such issues face major ongoing uncertainties or
                  exposure to adverse business, financial, or economic
                  conditions which could lead to the obligor's inadequate
                  capacity to meet its financial commitment on the obligation.

         B        More vulnerable to nonpayment than obligations rated BB, but
                  the obligor currently has the capacity to meet its financial
                  commitment on the obligation. Adverse business, financial, or
                  economic conditions will likely impair the obligor's capacity
                  or willingness to meet its financial commitment on the
                  obligation.

         CCC      Currently vulnerable to nonpayment, and dependent upon
                  favorable business, financial, and economic conditions for the
                  obligor to meet its financial commitment on the obligation. In
                  the event of adverse business, financial, or economic
                  conditions, the obligor is not likely to have the capacity to
                  meet its financial commitment on the obligation.

         CC       Currently highly vulnerable to nonpayment.

         C        Used to cover a situation where a bankruptcy petition has been
                  filed or similar action has been taken, but payments on this
                  obligation are being continued.

         D        In payment default. Used when payments on an obligation are
                  not made on the date due even if the applicable grace period
                  has not expired, unless Standard & Poor's believes that such
                  payments will be made during such grace period. Also used upon
                  the filing of a bankruptcy petition or the taking of a similar
                  action if payments on an obligation are jeopardized.

MOODY'S

INVESTMENT GRADE

         Aaa      Best quality. They carry the smallest degree of investment
                  risk and are generally referred to as "gilt edged." Interest
                  payments are protected by a large, or an exceptionally stable,
                  margin and principal is secure.

                                       81
<PAGE>   196


         Aa       High quality by all standards. Margins of protection may not
                  be as large as in Aaa securities, fluctuation of protective
                  elements may be greater, or there may be other elements
                  present that make the long-term risks appear somewhat larger
                  than in Aaa securities.

         A        These bonds possess many favorable investment attributes and
                  are to be considered as upper-medium grade obligations.
                  Factors giving security to principal and interest are
                  considered adequate, but elements may be present which suggest
                  a susceptibility to impairment sometime in the future.

         Baa      These bonds are considered medium-grade obligations (i.e.,
                  they are neither highly protected nor poorly secured).
                  Interest payments and principal security appear adequate for
                  the present but certain protective elements may be lacking or
                  may be characteristically unreliable over any great length of
                  time. Such bonds lack outstanding investment characteristics
                  and in fact have speculative characteristics as well.

Non-Investment Grade

         Ba       These bonds have speculative elements; their future cannot be
                  considered as well assured. The protection of interest and
                  principal payments may be very moderate and thereby not well
                  safeguarded during good and bad times over the future.

         B        These bonds lack the characteristics of a desirable investment
                  (i.e., potentially low assurance of timely interest and
                  principal payments or maintenance of other contract terms over
                  any long period of time may be small).

         Caa      Bonds in this category have poor standing and may be in
                  default. These bonds carry an element of danger with respect
                  to principal and interest payments.

         Ca       Speculative to a high degree and could be in default or have
                  other marked shortcomings. C is the lowest rating.

FITCH

Investment Grade

         AAA      Highest rating category. The obligor's capacity for timely
                  repayment of principal and interest is extremely strong.

         AA       The obligor's capacity for timely repayment is very strong.

         A        Bonds and preferred stock considered to be investment grade
                  and of high credit quality. The obligor's ability for timely
                  repayment is strong. However, adverse changes in business,
                  economic, or financial conditions are more likely to affect
                  the capacity for timely repayment than obligations in higher
                  rated categories.

         BBB      The obligor's capacity for timely repayment of principal and
                  interest is adequate. However, adverse changes in business,
                  economic or financial conditions and circumstances, are more
                  likely to affect the capacity for timely repayment than for
                  obligations in higher rated categories.

Non-Investment Grade

         BB       Obligations for which capacity for timely repayment of
                  principal and interest is uncertain. These obligations are
                  speculative to some degree and capacity for repayment remains
                  susceptible over time to adverse changes in business,
                  financial or economic conditions.

         B        The Obligor's capacity for timely repayment of principal and
                  interest is uncertain. Timely repayment of principal and
                  interest is not sufficiently protected against adverse changes
                  in business, economic or financial conditions and these
                  obligations are far more speculative than those in higher
                  rated categories.

         CCC      Obligations for which there is a current perceived possibility
                  of default. Timely repayment of principal and interest is
                  dependent on favorable business, economic, or financial
                  conditions and these obligations are far more speculative than
                  those in higher rated categories.

                                       82
<PAGE>   197

         CC       Obligations which are highly speculative or which have a high
                  risk of default.

         C        Obligations which are currently in default.

DESCRIPTION OF INSURANCE RATINGS

MOODY'S

These ratings represent Moody's opinions of the ability of insurance companies
to pay punctually senior policyholder claims and obligations.

         Aaa      Insurance companies rated in this category offer exceptional
                  financial security. While the financial strength of these
                  companies is likely to change, such changes as can be
                  visualized are most unlikely to impair their fundamentally
                  strong position.

         Aa       These insurance companies offer excellent financial security.
                  Together with the Aaa group, they constitute what are
                  generally known as high grade companies. They are rated lower
                  than Aaa companies because long-term risks appear somewhat
                  larger.

         A        Insurance companies rated in this category offer good
                  financial security. However, elements may be present which
                  suggest a susceptibility to impairment sometime in the future.

         Baa      Insurance companies rated in this category offer adequate
                  financial security. However, certain protective elements may
                  be lacking or may be characteristically unreliable over any
                  great length of time.

         BA       Insurance companies rated in this category offer questionable
                  financial security. Often the ability of these companies to
                  meet policyholder obligations may be very moderate and thereby
                  not well safeguarded in the future.

         B        Insurance companies rated in this company offer poor financial
                  security. Assurance of punctual payment of policyholder
                  obligations over any long period of time is small.

         Caa      Insurance companies rated in this category offer very poor
                  financial security. They may be in default on their
                  policyholder obligations or there may be present elements of
                  danger with respect to punctual payment of policyholder
                  obligations and claims.

         Ca       Insurance companies rated in this category offer extremely
                  poor financial security. Such companies are often in default
                  on their policyholder obligations or have other marked
                  shortcomings.

         C        Insurance companies rated in this category are the lowest
                  rated class of insurance company and can be regarded as having
                  extremely poor prospects of ever offering financial security.

S&P

An insurer rated "BBB" or higher is regarded as having financial security
characteristics that outweigh any vulnerabilities, and is highly likely to have
the ability to meet financial commitments.

         AAA      Extremely strong financial security characteristics. "AAA" is
                  the highest Insurer Financial Strength Rating assigned by
                  Standard & Poor's.

         AA       Very strong financial security characteristics, differing only
                  slightly from those rated higher.

   
         A        Strong financial security characteristics, but is somewhat
                  more likely to be affected by adverse business conditions than
                  are insurers with higher ratings.
    

         BBB      Good financial security characteristics, but is more likely to
                  be affected by adverse business conditions than are higher
                  rated insurers.

                                       83
<PAGE>   198

An insurer rated "BB" or lower is regarded as having vulnerable characteristics
that may outweigh its strength. "BB" indicates the least degree of vulnerability
within the range; "CC" the highest.

         BB       Marginal financial security characteristics. Positive
                  attributes exist, but adverse business conditions could lead
                  to insufficient ability to meet financial commitments.

         B        Weak financial security characteristics. Adverse business
                  conditions will likely impair its ability to meet financial
                  commitments.

         CCC      Very weak financial security characteristics, and is dependent
                  on favorable business conditions to meet financial
                  commitments.

         CC       Extremely weak financial security characteristics and is
                  likely not to meet some of its financial commitments.

         R        An insurer rated "R" has experienced a Regulatory Action
                  regarding solvency. The rating does not apply to insurers
                  subject only to nonfinancial actions such as market conduct
                  violations.

         NR       Not Rated, which implies no opinion about the insurer's
                  financial security.

Plus (+) or minus (-) Following ratings from "AA" to "CCC" show relative
standing within the major rating categories.

DESCRIPTION OF MUNICIPAL
NOTE RATINGS

MOODY'S

MIG1 &   Short-term municipal securities rated MIG1 or VMIG1 are of the best
VMIG1    quality. They have strong protection from established cash flows,
         superior liquidity support or demonstrated broad-based access to the
         market for refinancing.

MIG2 &   These short-term municipal securities rated are of high quality.
VMIG2    Margins of protection are ample although not so large as in the
         preceding group.

MIG3 &   Favorable quality. All security elements are accounted for, but the
VMIG3    undeniable strength of the preceding grades is lacking. Liquidity and
         cash flow protection may be narrow and marketing access for refinancing
         is likely to be less well established.

MIG4 &   This denotes adequate quality protection commonly regarded as
VMIG4    required of an investment security is present and although not
         distinctly or predominantly speculative, there is a specific risk.

   
SG       This denotes speculative quality.
    

S&P

An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in three years or less will likely receive a note
rating. Notes maturing beyond three years will most likely receive a long-term
debt rating.

SP-1     Strong capacity to pay principal and interest. Those issues determined
         to possess overwhelming safety characteristics will be given a plus (+)
         designation.

SP-2     Satisfactory capacity to pay principal and interest.

SP-3     Speculative capacity to pay principal and interest.


                                       84
<PAGE>   199


DESCRIPTION OF PREFERRED STOCK RATINGS

MOODY'S

         aaa      Top-quality preferred stock. This rating indicates good asset
                  protection and the least risk of dividend impairment within
                  the universe of preferred stocks.

         aa       High-grade preferred stock. This rating indicates that there
                  is a reasonable assurance the earnings and asset protection
                  will remain relatively well maintained in the foreseeable
                  future.

         a        Upper-medium grade preferred stock. While risks are judged to
                  be somewhat greater than in the "aaa" and "aa" classification,
                  earnings and asset protection are, nevertheless, expected to
                  be maintained at adequate levels.

         baa      Medium-grade preferred stock, neither highly protected nor
                  poorly secured. Earnings and asset protection appear adequate
                  at present but may be questionable over any great length of
                  time.

         ba       Considered to have speculative elements and its future cannot
                  be considered well assured. Earnings and asset protection may
                  be very moderate and not well safeguarded during adverse
                  periods. Uncertainty of position characterizes preferred
                  stocks in this class.

         b        Lacks the characteristics of a desirable investment. Assurance
                  of dividend payments and maintenance of other terms of the
                  issue over any long period of time may be small.

         caa      Likely to be in arrears on dividend payments. This rating
                  designation does not purport to indicate the future status of
                  payments.

         ca       Speculative in a high degree and is likely to be in arrears on
                  dividends with little likelihood of eventual payments.

         c        Lowest rated class of preferred or preference stock. Issues so
                  rated can thus be regarded as having extremely poor prospects
                  of ever attaining any real investment standing.

Note: Moody's applies numerical modifiers 1, 2, and 3 in each rating
classification; the modifier 1 indicates that the security ranks in the higher
end of its generic rating category; the modifier 2 indicates a mid-range ranking
and the modifier 3 indicates that the issue ranks in the lower end of its
generic rating category.

S&P

S&P's preferred stock rating is an assessment of the capacity and willingness of
an issuer to pay preferred stock dividends and any applicable sinking fund
obligations.

     AAA          Highest rating. This rating indicates an extremely strong
                  capacity to pay the preferred stock obligations.

   
     AA           High-quality, fixed income security. The capacity to pay
                  preferred stock obligations is very strong, although not as
                  overwhelming as for issues rated "AAA."
    

     A            Backed by a sound capacity to pay the preferred stock
                  obligations, although it is somewhat more susceptible to the
                  adverse effects of changes in circumstances and economic
                  conditions.

     BBB          Backed by an adequate capacity to pay the preferred stock
                  obligations. Whereas the issuer normally exhibits adequate
                  protection parameters, adverse economic conditions or changing
                  circumstances are more likely to lead to a weakened capacity
                  to make payments for a preferred stock in this category than
                  for issues in the "A" category.

   
     BB, B, CCC   Regarded, on balance, as predominantly speculative with
                  respect to the issuer's capacity to pay preferred stock
                  obligations. BB indicates the lowest degree of speculation and
                  CCC the highest. While such issues will likely have some
                  quality and protective characteristics, these are outweighed
                  by large uncertainties or major risk exposures to adverse
                  conditions.
    

                                       85
<PAGE>   200

         CC   In arrears on dividends or sinking fund payments, but that is
              currently paying.

         C    Nonpaying issue.

         D    Nonpaying issue with the issuer in default on debt instruments.

         NR   No rating has been requested, insufficient information on
              which to base a rating, or Standard & Poor's does not rate a
              particular type of obligation as a matter of policy.

Plus (+) or minus (-)
To provide more detailed indications of preferred stock quality, ratings from AA
to CCC may be modified by the addition of a plus or minus sign to show relative
standing within the major rating categories.

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") ratings apply only to the unsecured commercial
paper and other senior short-term and deposit obligations of entities to which
the ratings have been assigned. The TBW Short-Term ratings specifically assess
the likelihood of an untimely payment of principal and interest.

         TBW-1    Very high degree of likelihood that principal and interest
                  will be paid on a timely basis.

         TBW-2    While degree of safety regarding timely repayment of principal
                  and interest is strong, the relative degree is not as high as
                  for issues rated TBW-1.

         TBW-3    Lowest investment grade category. While more susceptible to
                  adverse developments than obligations with higher ratings,
                  capacity to service principal and interest in a timely fashion
                  is considered adequate.

         TBW-4    Non-investment grade and, therefore, speculative.

DESCRIPTION OF MUNICIPAL BOND RATINGS
(Including Foreign, Mortgage and Asset-Backed Securities)

S&P

Investment Grade

         AAA      The highest rating. The rating indicates an extremely strong
                  capacity to meet its financial commitment.

         AA       Differs from AAA issues only in a small degree. The obligor's
                  capacity to meet its financial commitment is very strong.

         A        These bonds are somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than debt in higher rated categories. However, capacity to
                  meet its financial commitment on the obligation is still
                  strong.

         BBB      Exhibits adequate protection parameters. However, adverse
                  economic conditions or changing circumstances are more likely
                  to lead to a weakened capacity to meet its financial
                  commitment on the obligations.

Non-Investment Grade

         BB       Less vulnerable to non-payment than other speculative issues.
                  However, these bonds face major ongoing uncertainties or
                  exposure to adverse business, financial or economic conditions
                  which could lead to inadequate capacity to meet financial
                  commitment on the obligations.

         B        More vulnerable to non-payment than obligations rated BB, but
                  currently has the capacity to meet its financial commitment on
                  the obligation. Adverse business, financial or economic
                  conditions will likely impair capacity or willingness to meet
                  its financial commitment on the obligation.

                                       86
<PAGE>   201

         CCC      Currently vulnerable to non-payment, and is dependent upon
                  favorable business, financial, and economic conditions to meet
                  its financial commitment on the obligation. In the event of
                  adverse business, financial, or economic conditions, they are
                  not likely to have the capacity to meet its financial
                  commitment on the obligation.

         CC       Currently highly vulnerable to non-payment.

         C        This rating may be used to cover a situation where a
                  bankruptcy petition has been filed, or similar action has been
                  taken, but payments on this obligation are being continued.

         D        Bonds in payment default.

Ratings from AA to CCC may be modified by a plus (+) or minus (-) to show
relative standing within the major rating categories.

MOODY'S

Investment Grade

         Aaa      Best quality. They carry the smallest degree of investment
                  risk and are generally referred to as "gilt edged." Interest
                  payments are protected by a large, or an exceptionally stable,
                  margin and principal is secure.

         Aa       High quality by all standards. Margins of protection may not
                  be as large as in Aaa securities, fluctuation of protective
                  elements may be greater, or there may be other elements
                  present that make the long-term risks appear somewhat larger
                  than in Aaa securities.

         A        These bonds possess many favorable investment attributes and
                  are to be considered as upper-medium grade obligations.
                  Factors giving security to principal and interest are
                  considered adequate, but elements may be present which suggest
                  a susceptibility to impairment sometime in the future.

         Baa      These bonds are considered medium-grade obligations (i.e.,
                  they are neither highly protected nor poorly secured).
                  Interest payments and principal security appear adequate for
                  the present but certain protective elements may be lacking or
                  may be characteristically unreliable over any great length of
                  time. Such bonds lack outstanding investment characteristics
                  and in fact have speculative characteristics as well.

Non-Investment Grade

         Ba       These bonds have speculative elements; their future cannot be
                  considered as well assured. The protection of interest and
                  principal payments may be very moderate and thereby not well
                  safeguarded during good and bad times over the future.

         B        These bonds lack the characteristics of a desirable investment
                  (i.e., potentially low assurance of timely interest and
                  principal payments or maintenance of other contract terms over
                  any long period of time may be small).

         Caa      Bonds in this category have poor standing and may be in
                  default. These bonds carry an element of danger with respect
                  to principal and interest payments.

         Ca       Speculative to a high degree and could be in default or have
                  other marked shortcomings. Ca is the lowest rating.





                                       86
<PAGE>   202


   





    





                                       87
<PAGE>   203

   
Investment Advisor and Sub-Administrator
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Sub-Advisor
Banc One High Yield Partners, LLC
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Distributor
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Administrator
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Transfer Agent and Custodian
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

Legal Counsel
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

Independent Accountants
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215

THE STATEMENT OF ADDITIONAL INFORMATION CONTAINS MORE DETAILED INFORMATION ABOUT
THE FUNDS. THE CURRENT STATEMENT OF ADDITIONAL INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY
CALLING 1-800-480-4111 OR BY WRITING TO THE ONE GROUP SERVICES COMPANY AT 3435
STELZER ROAD, COLUMBUS, OHIO 43219. THE STATEMENT OF ADDITIONAL INFORMATION IS
INCORPORATED INTO THIS PROSPECTUS BY REFERENCE. THE SEC MAINTAINS A WEB SITE
(WWW.SEC.GOV) THAT CONTAINS THE STATEMENT OF ADDITIONAL INFORMATION, MATERIALS
INCORPORATED BY REFERENCE AND OTHER INFORMATION REGARDING ONE GROUP(R).


34155.01
    


                                       89
<PAGE>   204






   
                            ONE GROUP(R) MUTUAL FUNDS
    

                              MUNICIPAL BOND FUNDS

                               COMBINED PROSPECTUS

                                 MARCH __, 1999

                  ONE GROUP(R) INTERMEDIATE TAX-FREE BOND FUND
                       ONE GROUP(R) MUNICIPAL INCOME FUND
                         ONE GROUP(R) TAX-FREE BOND FUND
                   ONE GROUP(R) SHORT-TERM MUNICIPAL BOND FUND
                    ONE GROUP(R) ARIZONA MUNICIPAL BOND FUND
                 ONE GROUP(R) WEST VIRGINIA MUNICIPAL BOND FUND
                   ONE GROUP(R) LOUISIANA MUNICIPAL BOND FUND
                      ONE GROUP(R) OHIO MUNICIPAL BOND FUND
                    ONE GROUP(R) KENTUCKY MUNICIPAL BOND FUND
                    ONE GROUP(R) MICHIGAN MUNICIPAL BOND FUND
   
This prospectus describes ten mutual funds that attempt to produce income exempt
from Federal and/or state income tax. The information in the prospectus is
important. Please read it carefully before you invest, and save it for future
reference.
    

PLEASE REMEMBER THAT SHARES OF THE FUNDS: O ARE NOT DEPOSITS OR OBLIGATIONS OF,
OR GUARANTEED BY BANK ONE CORPORATION OR ITS AFFILIATES; O ARE NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY FEDERAL OR
STATE GOVERNMENTAL AGENCY; O INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE
LOSS OF THE PRINCIPAL AMOUNT INVESTED.

  THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
     EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
         ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
                             IS A CRIMINAL OFFENSE.





<PAGE>   205


                                TABLE OF CONTENTS

   
<TABLE>
<S>                                                                                                   <C>
A BRIEF PREVIEW OF THE FUNDS                                                                            1
ABOUT THE FUNDS                                                                                         2
     One Group(R)Intermediate Tax-Free Bond Fund                                                        2
     One Group(R)Municipal Income Fund                                                                  5
     One Group(R)Tax-Free Bond Fund                                                                     8
     One Group(R)Short-Term Municipal Bond Fund                       
     One Group(R)Arizona Municipal Bond Fund                         
     One Group(R)West Virginia Municipal Bond Fund                                                     30
     One Group(R)Louisiana Municipal Bond Fund                                                         36
     One Group(R)Ohio Municipal Bond Fund                            
     One Group(R)Kentucky Municipal Bond Fund                        
     One Group(R)Michigan Municipal Bond Fund
MORE ABOUT THE FUNDS                                                                                   55
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS                       
     Purchasing Fund Shares                                          
     Sales Charges                                                                                     60 
     Sales Charge Reductions and Waivers                                                               63
     Exchanging Fund Shares                                          
     Redeeming Fund Shares                                           
SHAREHOLDER INFORMATION                                              
     Voting Rights                                                   
     Dividend Policies                                               
     Tax Treatment of the Funds                                                                        75 
     Tax Treatment of Shareholders                                                                     76
     Shareholder Inquiries                                                                             78 
ORGANIZATION AND MANAGEMENT OF THE FUNDS                                                               78
     The Funds                                                                                         78
     The Board of Trustees                                                                             78
     The Advisor                                                                                       79
     The Distributor                                                                                   79
     The Administrator and Sub-Administrator                                                           79
     The Transfer Agent, Custodian and Sub-Custodian                                                   79
DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES                                             81
     Investment Practices                                                                              81
     Investment Risks                                                                                  84    
     Investment Policies                                                                               85
APPENDIX: DESCRIPTION OF RATINGS                                                                       87
</TABLE>
    


<PAGE>   206

A BRIEF PREVIEW OF THE FUNDS

WHAT ARE THE GOALS OF THE MUNICIPAL BOND FUNDS?

The Funds are designed to produce income exempt from Federal and/ or state
income tax. Each Fund pursues a different investment objective and involves
different risks. These Funds may not be appropriate for Individual Retirement
Accounts, Qualified Plans, and other Retirement Plans that receive favorable tax
treatment. Please read about each Fund before investing.

WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?

   
The Intermediate Tax-Free Bond Fund, the Municipal Income Fund, the Tax-Free
Bond Fund, and the Short-Term Municipal Bond Fund invest in debt securities
issued by or on behalf of states, territories, and possessions of the United
States and their agencies that produce interest that is exempt from Federal
income tax. The Arizona Municipal Bond Fund, the West Virginia Municipal Bond
Fund, the Louisiana Municipal Bond Fund, the Kentucky Municipal Bond Fund, the
Ohio Municipal Bond Fund and the Michigan Municipal Bond Fund invest in debt
securities of their respective states that produce interest that is exempt from
Federal income tax and the personal income tax of each Fund's respective state.
The Funds may also lend their portfolio securities.
    

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?

   
The Funds invest in fixed-income investments that are subject to market
fluctuations as a result of changes in interest rates. As a result, the value of
investments in the Funds may decrease during periods of rising interest rates
and increase during periods of declining interest rates. In addition, some of
the Funds invest in mortgage-related securities which may have greater price and
yield volatility than traditional fixed income securities. Fixed income
securities also are subject to the risk that the issuer of the security will be
unable to meet its repayment obligation. All of the Funds, except the
Intermediate Tax-Free Bond Fund, the Municipal Income Fund, the Short-Term
Municipal Bond Fund and the Tax-Free Bond Fund are non-diversified funds which
expose investors to special risks, including risks associated with state
specific investments. An investment in the Funds is not a deposit of BANK ONE
CORPORATION or its affiliates and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. For more
information about risks, please read "More About the Funds" and "Investment
Risks."
    

WHAT CLASSES OF SHARES ARE AVAILABLE?

   
The Funds currently offer four classes of Shares: Class A, Class B, Class C and
Class I. Class A, Class B and Class C shares are offered to the general public.
Class I shares are offered to institutional investors, including affiliates of
BANK ONE CORPORATION and any bank, depository institution, insurance company,
pension plan or other organization authorized to act in fiduciary, advisory,
agency, custodial or similar capacities. Class C shares are not available for
purchase in all of the Funds. The section called "How To Do Business With the
One Group Mutual Funds" will provide more information.
    

HOW DO I PURCHASE AND REDEEM SHARES?

   
You may buy and redeem shares of the Funds on any day that the Funds are open
for business. Purchase and redemption procedures are explained in greater detail
in "How To Do Business With the One Group Mutual Funds." For additional
information, call The One Group Services Company at 1-800-480-4111.
    


                                        1
<PAGE>   207


HOW ARE DIVIDENDS PAID?

   
Generally, dividends are declared on each business day and are distributed on
the first business day of each month. Any capital gains are distributed at least
annually. Distributions are paid in additional shares of the same class unless
you elect to take the payment in cash. For a more detailed discussion of
dividends, see "Dividend Policies."
    

WHO MANAGES THE FUNDS?

Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Funds.
Banc One Investment Advisors is paid a fee for its services. A more detailed
discussion regarding Banc One Investment Advisors, its services and compensation
can be found in the Prospectus under the headings "The Advisor" and "Expense
Summary."



                                        2
<PAGE>   208


   
ONE GROUP(R) INTERMEDIATE TAX-FREE BOND FUND
    

INVESTMENT OBJECTIVE

The Fund is a diversified fund that seeks current income exempt from Federal
income taxes consistent with prudent investment management and the preservation
of capital.

INVESTMENT STRATEGY

The Fund invests in bonds and notes of states, territories and possessions of
the United States, including the District of Columbia, and their respective
authorities, political subdivisions, agencies and instrumentalities, the
interest on which is exempt from Federal income tax ("Municipal Securities").
The Fund's average weighted maturity normally will range between three and ten
years.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its net assets in Municipal Securities. As a
matter of fundamental policy, the Fund invests at least 65% of its total assets
in bonds. The Fund also may invest in mortgage-backed securities, restricted
securities, and mortgage dollar rolls. The securities in which the Fund invests
may have fixed rates of return or floating or variable rates. For a list of all
securities in which the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund may invest in Municipal Securities that are rated in the lowest
investment grade. Even though such securities are generally considered
investment grade, they are considered to have speculative characteristics.
Issuers of such securities are more vulnerable to changes in economic conditions
than issuers of higher grade securities. The Municipal Securities are also fixed
income investments. The value of these securities will change in response to
interest rate changes and other factors. In addition, the Fund invests in
mortgage-related securities which have significantly greater price and yield
volatility than traditional fixed income securities. Before you invest, please
read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 20% of the Fund's assets may be invested in Municipal Securities, the
interest on which may be subject to the Federal alternative minimum tax for
individuals. Shareholders who are subject to the Federal alternative minimum tax
may have all or a portion of their income from the Fund subject to Federal
income tax. In addition, corporate shareholders will be required to take the
interest on Municipal Securities into account in determining their alternative
minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.



                                       3
<PAGE>   209


SHAREHOLDER EXPENSES

   
<TABLE>

SHAREHOLDER TRANSACTION EXPENSES(1)                      CLASS A        CLASS B      CLASS C         CLASS I
- -----------------------------------                      -------        -------      -------         -------

<S>                                                       <C>            <C>            <C>            <C>
Maximum Sales Charge Imposed
   on Purchases (as a percentage
   of offering price)                                     4.50%           none          none            none
Maximum Contingent Deferred
   Sales Charge (as a percentage
   of original purchase price
   or redemption proceeds,
   as applicable)                                         none(2)         5.00%         1.00%           none
Redemption Fees                                           none            none          none            none
Exchange Fees                                             none            none          none            none
ANNUAL OPERATING EXPENSES(3)
   (as a percentage of
   average daily net assets)
Investment Advisory Fees (after
   fee waiver)(4)                                          .39%            .39%          .39%            .39%
12b-1 Fees (after fee waiver)(5)                           .25%            .90%          .90%           none
Other Expenses                                             .19%            .19%          .19%            .19%
Total Fund Operating Expenses
   (after fee waivers)(6)                                  .83%           1.48%         1.48%            .58%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

   
(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.14 % for Class A shares, 1.79% for
         Class B shares, 1.79% for Class C shares and .79% for Class I shares.

    
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.




                                      4
<PAGE>   210

<TABLE>
<CAPTION>

                                                       1 YEAR           3 YEARS        5 YEARS          10 YEARS
                                                       ------           -------        -------          --------

   
<S>                                                     <C>              <C>            <C>              <C> 
Class A                                                 $53              $70            $ 89             $143
Class A (without fee waivers)                           $56              $80            $105             $177
Class B                                                 $65              $77            $101             $159
Class B (without fee waivers)                           $68              $86            $117             $193
Class C                                                 $25              $47            $ 81             $177
Class C (without fee waivers)                           $28              $56            $ 97             $211
Class I                                                 $ 6              $19            $ 32             $ 73
Class I (without fee waiver)                            $ 8              $25            $ 44             $ 98
    
</TABLE>

Assuming no redemption the end of each time period, the dollar amounts in the
above example would be as follows:



<TABLE>
<CAPTION>

                                                       1 YEAR           3 YEARS        5 YEARS          10 YEARS
                                                       ------           -------        -------          --------

   
<S>                                                     <C>              <C>            <C>              <C> 
Class A                                                 $53              $70            $ 89             $143
Class A (without fee waivers)                           $56              $80            $105             $177
Class B                                                 $15              $47            $ 81             $159
Class B (without fee waivers)                           $18              $56            $ 97             $193
Class C                                                 $15              $47            $ 81             $177
Class C (without fee waivers)                           $18              $56            $ 97             $211
Class I                                                 $ 6              $19            $ 32             $ 73
Class I (without fee waiver)                            $ 8              $25            $ 44             $ 98
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years. 
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund.
These examples should not be considered a representation of past or future
expenses and actual expenses may be greater or less than those shown. 



                                       5
<PAGE>   211
   
ONE GROUP (R) INTERMEDIATE TAX-FREE BOND FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's 
financial performance for the past 10 years or since inception, if less than 
10 years. The total returns in the table represent the rate a shareholder would 
have earned on an investment in the Fund (assuming reinvestment of all 
dividends and distributions). This information has been derived from financial 
statements audited by PricewaterhouseCoopers LLP, whose report, along with the 
Fund's financial statements, is incorporated by reference in the Statement of 
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
                                                                      YEAR ENDED JUNE 30,
                                                                      -------------------
Class 1                              1998         1997        1996      1995         1994         1993        1992       1991(c)
- -------                              ----         ----        ----      ----        ------        ----        ----       -------
<S>                                <C>         <C>          <C>        <C>         <C>          <C>        <C>         <C>    
Net Asset Value,
  Beginning of Period             $   10.92    $  10.67     $  10.64   $  10.49    $  11.15     $  10.69   $  10.28    $ 10.00 
Investment Activities:
     Net investment income             0.52        0.54         0.52       0.54        0.52         0.53       0.55       0.49 
     Net realized and
     unrealized gains 
     (losses)
     from investments                  0.31        0.27         0.04       0.15       (0.52)        0.49       0.42       0.27 
Total from Investment
     Activities                        0.83        0.81         0.56       0.69        0.00         1.02       0.97       0.76
Distributions:    
    
     Net investment income            (0.52)      (0.54)       (0.51)     (0.54)      (0.53)       (0.52)     (0.55)     (0.48)
     In excess of net                                                                                                  
     investment income                   --          --           --         --       (0.01)          --         --         --
     Net realized gains               (0.08)      (0.02)       (0.02)        --       (0.01)       (0.04)     (0.01)        --
     In excess of net                                                                                                  
     realized gains                      --          --           --         --       (0.11)       --            --         --
Total Distributions                   (0.60)      (0.56)       (0.53)     (0.54)      (0.66)       (0.56)     (0.56)     (0.48)
NET ASSET VALUE, END OF                                                                                                
  PERIOD                           $  11.15    $  10.92     $  10.67   $  10.64    $  10.49     $  11.15   $  10.69    $ 10.28
Total Return                           7.74%       7.76%        5.39%      6.75%      (0.11)%       9.79%      9.54%      9.49%(b)
RATIOS/SUPPLEMENTARY DATA:                                                                                             
     Net Assets at end of                                                                                              
     period (000)                  $493,686    $451,089     $217,201   $211,229    $182,611     $166,489   $142,672    $82,192
     Ratio of expenses to                                                                                              
     average net assets                0.60%       0.58%        0.54%      0.53%       0.48%        0.54%      0.55%      0.30%(b)
     Ratio of net investment                                                                                           
    income to average                                                                                                  
     net assets                        4.70%       5.05%        4.87%      5.17%       4.78%        4.93%      5.28%      6.04%(b)
     Ratio of expenses to                                                                                              
     average net assets*               0.81%       0.81%        0.87%      0.88%       0.84%        0.94%      1.07%      0.90%(b)
     Ratio of net investment                                                                                           
     income to average                                                                                                 
     net assets*                       4.49%       4.82%        4.54%      4.82%       4.42%        4.53%      4.77%      5.44%(b)
  Portfolio turnover(a)              109.03%      86.89%      111.58%    199.76%     105.98%       31.99%     11.50%     35.15%
</TABLE>

*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b)Annualized.
     (c)The Class I commenced operations on September 4, 1990.



                                       6
<PAGE>   212

<TABLE>
<CAPTION>

                                                                   YEARS ENDED JUNE 30,
                                                                   --------------------
CLASS A                                1998         1997        1996         1995         1994         1993      1992(C)
- -------                              --------     -------     --------     --------     --------     -------     -------


<S>                                  <C>          <C>         <C>          <C>          <C>          <C>         <C>    
NET ASSET VALUE, BEGINNING
     OF PERIOD                       $  10.91     $ 10.67     $  10.63     $  10.48     $  11.14     $ 10.69     $ 10.57
Investment Activities:                                                                                             
     Net investment income               0.50        0.51         0.50         0.51         0.50        0.55        0.15
     Net realized and unrealized                                                                                   
     gains (losses) from                                                                                           
     investments                         0.31        0.26         0.05         0.15        (0.52)       0.44        0.18
Total from Investment Activities         0.81        0.77         0.55         0.66        (0.02)       0.99        0.33
Distributions:                                                                                                     
     From net investment income         (0.50)      (0.51)       (0.49)       (0.49)       (0.52)      (0.50)      (0.21)
     In excess of net investment                                                                                   
     income                                --          --           --        (0.02)       (0.01)         --          --
     Net realized gains                 (0.08)      (0.02)       (0.02)          --           --       (0.04)         --
     In excess of net realized                                                                                     
     gains                                 --          --           --           --        (0.11)         --          --
Total Distributions                     (0.58)      (0.53)       (0.51)       (0.51)       (0.64)      (0.54)      (0.21)
NET ASSET VALUE, END OF PERIOD       $  11.14     $ 10.91     $  10.67     $  10.63     $  10.48     $ 11.14     $ 10.69
Total Return (Excludes                                                                                             
     Sales Charge)                       7.50%       7.39%        5.28%        6.49%       (0.33)%      9.47%       8.68%(b)
RATIOS/SUPPLEMENTARY DATA:                                                                                         
     Net Assets at end of                                                                                          
     period (000)                    $ 14,515     $ 8,457     $  6,622     $  5,614     $  5,556     $ 5,480     $     5
     Ratio of expenses to                                                                                          
     average net assets                  0.85%       0.83%        0.79%        0.78%        0.73%       0.71%       1.02%(b)
     Ratio of net investment                                                                                       
     income to average net assets        4.45%       4.75%        4.62%        4.91%        4.57%       4.77%       4.91%(b)
     Ratio of expenses to average                                                                                  
     net assets*                         1.16%       1.15%        1.22%        1.23%        1.19%       1.27%       1.32%(b)
     Ratio of net investment                                                                                       
     income to average net assets*       4.14%       4.43%        4.19%        4.46%        4.11%       4.21%       4.61%(b)
Portfolio turnover(a)                  109.03%      86.89%      111.58%      199.76%      105.98%      31.99       11.50%
                                                                                                                   
</TABLE>

*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued. (b)Annualized.
     (c)Class A Shares commenced offering on February 18, 1992.




                                       7
<PAGE>   213


   
ONE GROUP(R) INTERMEDIATE TAX-FREE BOND FUND   FINANCIAL HIGHLIGHTS
    

   
<TABLE>
<CAPTION>

                                                                           YEAR ENDED JUNE 30,
                                                                           -------------------
CLASS B                                            1998            1997         1996         1995        1994(a)
- -------                                            ----            ----         ----         ----        -------


<S>                                                <C>             <C>          <C>          <C>                
NET ASSET VALUE, BEGINNING OF PERIOD               $  10.93        $  10.68     $  10.65     $ 10.50$      11.18
Investment Activities:
   Net investment income                               0.43            0.45         0.43        0.46        0.17
   Net realized and unrealized gains
     (losses) from investments                         0.31            0.27         0.04        0.14       (0.67)
Total from Investment Activities                       0.74            0.72         0.47        0.60       (0.50)
Distributions:
   From net investment income                         (0.43)          (0.45)       (0.42)      (0.45)      (0.17)
   Net realized gains                                 (0.08)          (0.02)       (0.02)         --          --
   In excess of net realized gains                       --              --           --          --       (0.01)
Total Distributions                                   (0.51)          (0.47)       (0.44)      (0.45)      (0.18)
NET ASSET VALUE, END OF PERIOD                     $  11.16        $  10.93     $  10.68    $  10.65    $  10.50
Total Return (Excludes Sales Charge)                   6.81%           6.82%        4.48%       5.89%      (4.48)%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)               $  5,659        $  3,307     $  2,439    $  1,116    $    549
   Ratio of expenses to average net assets             1.50%           1.47%        1.44%       1.43%       1.40%(c)
   Ratio of net investment income to
     average net assets                                3.80%           4.09%        3.97%       4.29%       4.08%(c)
   Ratio of expenses to average net assets*            1.81%           1.78%        1.87%       1.88%       1.85%(c)
   Ratio of net investment income to
     average net assets*                               3.49%           3.78%        3.54%       3.84%       3.63%(c)
   Portfolio turnover(d)                             109.03%          86.89%      111.58%     199.76%     105.98%
</TABLE>
    


*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Class B Shares commenced offering on January 14, 1994. (b)Not
     annualized. (c)Annualized. (d)Portfolio turnover is calculated on the basis
     of the Fund as a whole without distinguishing among the classes of shares
     issued.




                                       8
<PAGE>   214


   
ONE GROUP(R) MUNICIPAL INCOME FUND
    

INVESTMENT OBJECTIVE

The Fund is a diversified fund that seeks current income exempt from Federal
income taxes.

INVESTMENT STRATEGY

The Fund invests in debt securities of states, territories and possessions of
the United States, including the District of Columbia, and their respective
authorities, political subdivisions, agencies and instrumentalities, the
interest on which is exempt from Federal income tax ("Municipal Securities").
The Fund's average weighted maturity normally will range from five to fifteen
years, although the Fund may shorten its average weighted maturity to as little
as two years if appropriate for temporary defensive purposes.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its net assets in Municipal Securities. As a
matter of fundamental policy, the Fund invests at least 65% of its total assets
in bonds. As a matter of fundamental policy, the Fund will not invest more than
25% of its net assets (i) in securities within a single industry; or (ii) in
securities of governmental units or issuers in the same state, territory, or
possession. However, the Fund will, from time to time, invest more than 25% of
its net assets in municipal housing authority obligations and single-family
mortgage revenue bonds. The Fund also may invest in mortgage-backed securities,
restricted securities, and mortgage dollar rolls. The securities in which the
Fund invests may have fixed rates of return or floating or variable rates. For a
list of all securities in which the Fund may invest, please read "Investment
Practices."

RISK CONSIDERATIONS

The Fund may invest in Municipal Securities that are rated in the lowest
investment grade. Even though such securities are generally considered
investment grade securities, they are considered to have speculative
characteristics. Issuers of such securities are more vulnerable to changes in
economic conditions than issuers of higher grade securities. The Municipal
Securities are also fixed income investments. The value of these securities will
change in response to interest rates and other factors. In addition, the Fund
invests in mortgage-related securities which may have greater price and yield
volatility than traditional fixed income securities. Before you invest, please
read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Municipal Securities the
interest on which may be subject to Federal alternative minimum tax for
individuals. Shareholders who are subject to the Federal alternative minimum tax
may have all or a portion of their income from the Fund subject to Federal
income tax. In addition, corporate shareholders will be required to take the
interest on Municipal Securities into account in determining their alternative
minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.

                                       9
<PAGE>   215
SHAREHOLDER EXPENSES


<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION
EXPENSES(1)                                           CLASS A           CLASS B          CLASS C        CLASS I
- -----------                                           -------           -------          -------        -------

<S>                                                   <C>                <C>              <C>             <C> 
Maximum Sales Charge
   Imposed on Purchases
   (as a percentage of
   offering price)                                     4.50%              none             none           none
Maximum Contingent Deferred
   Sales Charge
   (as a percentage of
   original purchase price
   or redemption proceeds,
   as applicable)                                       none(2)           5.00%            1.00%          none
   Redemption Fees                                      none              none             none           none
   Exchange Fees                                        none              none             none           none
ANNUAL OPERATING EXPENSES(3)
   (as a percentage of average
   daily net assets)
Investment Advisory Fees (after
   fee waiver)(4)                                       .35%              .35%             .35%           .35%
   12b-1 Fees (after fee waiver)(5)                     .25%              .90%             .90%           none
   Other Expenses                                       .27%              .27%             .27%           .27%
Total Fund Operating Expenses
   (after fee waivers)(6)                               .87%             1.52%            1.52%           .62%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .45% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.07% for Class A shares, 1.72% for
         Class B shares, 1.72% for Class C shares and .72% for Class I shares.



                                       10
<PAGE>   216


EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>

                                                             1 YEAR          3 YEARS        5 YEARS     10 YEARS
                                                             ------          -------        -------     --------

<S>                                                            <C>             <C>           <C>          <C> 
Class A                                                        $53             $72           $ 91         $147
Class A (without fee waivers)                                  $55             $78           $101         $170
Class B                                                        $65             $78           $103         $164
Class B (without fee waivers)                                  $67             $84           $113         $186
Class C                                                        $25             $48           $ 83         $181
Class C (without fee waivers)                                  $27             $54           $ 93         $203
Class I                                                        $ 6             $20           $ 35         $ 77
Class I (without fee waiver)                                   $ 7             $23           $ 40         $ 89
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>

                                                             1 YEAR          3 YEARS       5 YEARS      10 YEARS
                                                             ------          -------       -------      --------

<S>                                                            <C>             <C>          <C>           <C> 
Class A                                                        $53             $72          $ 91          $147
Class A (without fee waivers)                                  $55             $78          $101          $170
Class B                                                        $15             $48          $ 83          $164
Class B (without fee waivers)                                  $17             $54          $ 93          $186
Class C                                                        $15             $48          $ 83          $181
Class C (without fee waivers)                                  $17             $54          $ 93          $203
Class I                                                        $ 6             $20          $ 35          $ 77
Class I (without fee waiver)                                   $ 7             $23          $ 40          $ 89
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       11
<PAGE>   217


   
ONE GROUP(R) MUNICIPAL INCOME FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.


<TABLE>
<CAPTION>
                                                                     YEAR ENDED JUNE 30,
                                                                     -------------------

CLASS I                                  1998          1997           1996         1995         1994       1993(a)
                                         ----          ----           ----         ----         ----       ----   

<S>                                    <C>           <C>            <C>          <C>          <C>         <C>    
   
NET ASSET VALUE, BEGINNING
  OF PERIOD                            $   9.84      $   9.66       $   9.69     $   9.66     $  10.11    $ 10.00
Investment Activities:
   Net investment income                   0.51          0.53           0.56         0.57         0.56       0.19
   Net realized and
     unrealized gains
     (losses) from
     investments                           0.27          0.18          (0.03)        0.03        (0.42)      0.11
Total from Investment
   Activities                              0.78          0.71           0.53         0.60         0.14       0.30
Distributions:
   Net investment income                  (0.51)        (0.53)         (0.56)       (0.57)       (0.56)     (0.19)
   In excess of net
     realized gains                          --            --             --           --        (0.03)        --
Total Distributions                       (0.51)        (0.53)         (0.56)       (0.57)       (0.59)     (0.19)
NET ASSET VALUE, END
   OF PERIOD                           $  10.11      $   9.84       $   9.66     $   9.69     $   9.66    $ 10.11
Total Return                               8.09%         7.49%          5.54%        6.46%        1.36%      5.18%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end
     of period (000)                   $617,885      $408,577       $241,115     $185,916     $152,763    $40,777
   Ratio of expenses to
     average net assets                    0.57%         0.57%          0.56%        0.56%        0.54%      0.54%(b)
   Ratio of net investment
     income to average
     net assets                            5.08%         5.38%          5.70%        6.02%        5.61%      5.66%(b)
   Ratio of expenses to
     average net assets*                   0.67%         0.68%          0.76%        0.74%        0.71%      1.01%(b)
   Ratio of net investment
     income to average
     net assets*                           4.98%         5.27%          5.50%        5.84%        5.44%      5.19%(b)
Portfolio turnover(c)                     69.76%        62.83%         83.17%       66.02%      101.48%     66.12%
    
</TABLE>


*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)The Fund commenced operations on February 9, 1993. (b)Annualized.
     (c)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued.



                                       12
<PAGE>   218

<TABLE>
<CAPTION>

                                                                     YEAR ENDED JUNE 30,
                                                                     -------------------
CLASS A                                1998          1997         1996         1995          1994       1993(a)
- -------                                ----          ----         ----         ----          ----       -------


<S>                                   <C>          <C>           <C>          <C>           <C>         <C>    
NET ASSET VALUE,
  BEGINNING OF PERIOD                 $  9.87      $  9.69       $  9.72      $  9.67       $ 10.12     $ 10.06
Investment Activities:
Net investment income                    0.49         0.51          0.55         0.55          0.55        0.19
Net realized and unrealized
   gains (losses) from
   investments                           0.27         0.18         (0.04)        0.05         (0.43)       0.05
Total from Investment
   Activities                            0.76         0.69          0.51         0.60          0.12        0.24
Distributions:
   Net investment income                (0.49)       (0.51)        (0.54)       (0.55)        (0.54)      (0.18)
   In excess of net
     realized gains                        --           --            --           --         (0.03)         --
Total Distributions                     (0.49)       (0.51)        (0.54)       (0.55)        (0.57)      (0.18)
NET ASSET VALUE, END
   OF PERIOD                         $  10.14      $  9.87       $  9.69      $  9.72       $  9.67    $  10.12
Total Return (Excludes
   Sales Charge)                         7.84%        7.24%         5.35%        6.21%         1.34%       6.86%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end
     of period (000)                 $101,805      $41,829       $25,787      $11,462       $10,725    $  4,106
   Ratio of expenses
     to average net assets               0.82%        0.82%         0.81%        0.81%         0.79%       0.80%(b)
   Ratio of net investment
     income to average
     net assets                          4.83%        5.13%         5.45%        5.76%         5.44%       5.71%(b)
   Ratio of expenses to
     average net assets*                 1.02%        1.03%         1.11%        1.09%         1.06%       1.36%(b)
   Ratio of net investment
     income to average
     net assets*                         4.63%        4.92%         5.15%        5.48%         5.17%       5.15%(b)
   Portfolio turnover(c)                69.76%       62.83%        83.17%       66.02%       101.48%      66.12%
</TABLE>


   
*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a)Class A Shares commenced offering on February 23, 1993. (b)Annualized.
     (c)Portfolio turnover is calculated on the basis of the Fund as a whole
     without distinguishing among the classes of shares issued.
    


                                       13
<PAGE>   219



   
ONE GROUP(R) MUNICIPAL INCOME FUND  FINANCIAL HIGHLIGHTS
    

<TABLE>
<CAPTION>

                                                                       YEAR ENDED JUNE 30,
                                                                       -------------------
CLASS B                                                 1998         1997          1996         1995        1994(a)
- -------                                                 ----         ----          ----         ----        -------


<S>                                                   <C>          <C>            <C>          <C>          <C>     
   NET ASSET VALUE, BEGINNING OF PERIOD               $   9.84     $   9.66       $  9.69      $  9.62      $ 10.10
Investment Activities:
   Net investment income                                  0.42         0.44          0.47         0.49         0.24
   Net realized and unrealized gains
     (losses) from investments                            0.26         0.18         (0.03)        0.07        (0.48)
Total from Investment Activities                          0.68         0.62          0.44         0.56        (0.24)
Distributions:
   Net investment income                                 (0.42)       (0.44)        (0.47)       (0.49)       (0.24)
Total Distributions                                      (0.42)       (0.44)        (0.47)       (0.49)       (0.24)
NET ASSET VALUE, END OF PERIOD                        $  10.10     $   9.84       $  9.66      $  9.69      $  9.62
Total Return (Excludes Sales Charge)                      7.04%        6.55%         4.65%        5.58%       (1.98)%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                  $ 56,911     $ 36,258       $23,204      $ 8,326      $ 4,855
   Ratio of expenses to average net assets                1.47%        1.47%         1.46%        1.46%        1.41%(c)
   Ratio of net investment income to
     average net assets                                   4.18%        4.48%         4.80%        5.14%        4.95%(c)
   Ratio of expenses to average net assets*               1.67%        1.67%         1.76%        1.74%        1.62%(c)
   Ratio of net investment income to
     average net assets*                                  3.98%        4.28%         4.50%        4.86%        4.74%(c)
   Portfolio turnover(d)                                 69.76%       62.83%        83.17%       66.02%      101.48%
</TABLE>


*    During the period certain fees were voluntarily reduced. If such voluntary 
     fee reductions had not occurred, the ratios would have been indicated. (a)
     Class B Shares commenced offering on January 14, 1994. (b) Not annualized.
     (c) Annualized. (d) Portfolio turnover is calculated on the basis of the 
     Fund as a whole without distinguishing among the classes of shares issued.

<TABLE>
<CAPTION>
                                                                    NOVEMBER 4, 1997
CLASS C                                                            TO JUNE 30, 1998(a)
- -------                                                            -------------------
<S>                                                                   <C>
NET ASSET VALUE, BEGINNING OF PERIOD                                    $  9.96
Investment Activities:          
   Net investment income                                                   0.68
   Net realized and unrealized gains (losses) from investments             0.13
Total from Investment Activities                                           0.81
Distributions:
   Net investment income                                                  (0.68)
Total Distributions                                                       (0.68)
NET ASSET VALUE, END OF PERIOD                                          $ 10.09
Total Return (Excludes Sales Charge)                                       8.28%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                                     $2,216
   Ratio of expenses to average net assets                                 1.47%(c)
   Ratio of net investment income to average net assets                    4.18%(c)
   Ratio of expenses to average net assets*                                1.67%(c)
   Ratio of net investment income to average net assets*                   3.98%(c)
   Portfolio turnover(d)                                                  69.76%(c)
</TABLE>

   * During the period certain fees were voluntarily reduced. If such voluntary 
fee reductions had not occurred, the ratios would have been as indicated. (a) 
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.



                                       14
<PAGE>   220









   
    

   
ONE GROUP(R) TAX-FREE BOND FUND

INVESTMENT OBJECTIVE

The Fund is a diversified fund that seeks as high a level of current income
exempt from Federal income tax as is consistent with relative stability of
principal.

INVESTMENT STRATEGY

The Fund invests in debt securities of states, territories and possessions of
the United States, including the District of Columbia, and their respective
authorities, political subdivisions, agencies and instrumentalities, the
interest on which is exempt from Federal income tax ("Municipal Securities").
The Fund invests in Municipal Securities without regard to maturity.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its net assets in Municipal Securities. As a
matter of fundamental policy, the Fund invests at least 65% of its total assets
in bonds. Up to 20% of the Fund's total assets may be held in cash and cash
equivalents. The Fund will, from time to time, invest more than 25% of its net
assets in municipal housing authority obligations and single-family mortgage
revenue bonds. The Fund also may invest in mortgage-backed securities,
restricted securities, and mortgage dollar rolls. The securities in which the
Fund invests may have fixed rates of return or floating or variable rates. For a
list of all securities in which the Fund may invest, please read "Investment
Practices."

RISK CONSIDERATIONS

The Fund may invest in Municipal Securities that are rated in the lowest
investment grade. Even though such securities are generally considered
investment grade securities, they are considered to have speculative
characteristics. Issuers of such securities are more vulnerable to changes in
economic conditions than issuers of higher grade securities. The Municipal
Securities are also fixed income investments. The value of these securities will
change in response to interest rates and other factors. In addition, the Fund
invests in mortgage-related securities which may have greater price and yield
volatility than traditional fixed income securities. Before you invest, please
read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 20% of the Fund's assets may be invested in Municipal Securities the
interest on which may be subject to Federal alternative minimum tax for
individuals. Shareholders who are subject to the Federal alternative minimum tax
may have all or a portion of their income from the Fund subject to Federal
income tax. In addition, corporate shareholders will be required to take the
interest on Municipal Securities into account in determining their alternative
minimum taxable income.

FUND MANAGEMENT
    


                                       15
<PAGE>   221

   
The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.
    



                                       16
<PAGE>   222



   
SHAREHOLDER EXPENSES

<TABLE>

SHAREHOLDER TRANSACTION EXPENSES (1)                            CLASS A      CLASS B      CLASS C      CLASS I
- ------------------------------------                            -------      -------      -------      -------

<S>                                                             <C>         <C>           <C>           <C> 
Maximum Sales Charge Imposed on Purchases
   (as a percentage of offering price)                           4.50%       none          none         none
Maximum Contingent Deferred Sales Charge
   (as a percentage of original purchase
   price or redemption proceeds, as
   applicable)                                                   none(2)     5.00%         1.00%        none
   Redemption Fees                                               none        none          none         none
   Exchange Fees                                                 none        none          none         none
ANNUAL OPERATING EXPENSES
   (as a percentage of average daily net assets)
Investment Advisory Fees (after fee
   waiver)(3)                                                     .40%        .40%          .40%         .40%
12b-1 Fees (after fee waiver)(4)                                  .25%        .90%          .90%        none
Other Expenses (after reimbursements)(5)                          .22%        .22%          .22%         .22%
Total Fund Operating Expenses (after fee
   waivers)(6)                                                    .87%       1.52%         1.52%         .62%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .45% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(5)      Without expense reimbursements, Other Expenses would be .23% for all 
         classes of shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.03% for Class A shares, 1.68% for
         Class B shares, 1.68 % for Class C shares and .68% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.
    


                                       16
<PAGE>   223

   
<TABLE>
<CAPTION>

                                                         1 YEAR         3 YEARS        5 YEARS        10 YEARS

<S>                                                        <C>            <C>             <C>            <C> 
Class A                                                    $ 53           $ 72            $ 91           $147
Class A (without fee waivers)                              $ 55           $ 76            $ 99           $165
Class B                                                    $ 65           $ 78            $103           $164
Class B (without fee waivers)                              $ 67           $ 83            $111           $181
Class C                                                    $ 25           $ 48            $ 83           $181
Class C (without fee waivers)                              $ 27           $ 53            $ 91           $199
Class I                                                    $  6           $ 20            $ 35           $ 77
Class I (without fee waiver)                               $  7           $ 22            $ 38           $ 85
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>

                                                         1 YEAR         3 YEARS        5 YEARS        10 YEARS

<S>                                                        <C>            <C>             <C>            <C> 
Class A                                                    $ 53           $ 72            $ 91           $147
Class A (without fee waivers)                              $ 55           $ 76            $ 99           $165
Class B                                                    $ 15           $ 48            $ 83           $164
Class B (without fee waivers)                              $ 17           $ 53            $ 91           $181
Class C                                                    $ 15           $ 48            $ 83           $181
Class C (without fee waivers)                              $ 17           $ 53            $ 91           $199
Class I                                                    $  6           $ 20            $ 35           $ 77
Class I (without fee waiver)                               $  7           $ 22            $ 38           $ 85
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


ONE GROUP TAX-FREE BOND FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by_____________, LLP, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    


                                       18
<PAGE>   224

   
ONE GROUP(R) SHORT-TERM MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE

The Fund is a diversified fund that seeks as high a level of current income
exempt from Federal income tax as is consistent with relative stability of
principal.

INVESTMENT STRATEGY

The Fund invests in debt securities of states, territories and possessions of
the United States, including the District of Columbia, and their respective
authorities, political subdivisions, agencies and instrumentalities, the
interest on which is exempt from Federal income tax ("Municipal Securities").
The Fund's average weighted maturity will range between one and three years.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its net assets in Municipal Securities. As a
matter of fundamental policy, the Fund invests at least 65% of its total assets
in bonds. Up to 20% of the Fund's total assets may be held in cash and cash
equivalents. The Fund will, from time to time, invest more than 25% of its net
assets in municipal housing authority obligations and single-family mortgage
revenue bonds. The Fund also may invest in mortgage-backed securities,
restricted securities, and mortgage dollar rolls. The securities in which the
Fund invests may have fixed rates of return or floating or variable rates. For a
list of all securities in which the Fund may invest, please read "Investment
Practices."

RISK CONSIDERATIONS

The Fund may invest in Municipal Securities that are rated in the lowest
investment grade. Even though such securities are generally considered
investment grade securities, they are considered to have speculative
characteristics. Issuers of such securities are more vulnerable to changes in
economic conditions than issuers of higher grade securities. The Municipal
Securities are also fixed income investments. The value of these securities will
change in response to interest rates and other factors. In addition, the Fund
invests in mortgage-related securities which may have greater price and yield
volatility than traditional fixed income securities. Before you invest, please
read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Municipal Securities the
interest on which may be subject to Federal alternative minimum tax for
individuals. Shareholders who are subject to the Federal alternative minimum tax
may have all or a portion of their income from the Fund subject to Federal
income tax. In addition, corporate shareholders will be required to take the
interest on Municipal Securities into account in determining their alternative
minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.
    


                                       19
<PAGE>   225

   
SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES (1)                          CLASS A        CLASS B     CLASS C     CLASS I

<S>                                                            <C>             <C>         <C>         <C> 
Maximum Sales Charge Imposed on Purchases
   (as a percentage of offering price)                          3.00%          none        none        none
Maximum Contingent Deferred Sales Charge
   (as a percentage of original purchase
   price or redemption proceeds, as
   applicable)                                                  none(2)        3.00%       1.00%       none
   Redemption Fees                                              none           none        none        none
   Exchange Fees                                                none           none        none        none
ANNUAL OPERATING EXPENSES
   (as a percentage of average daily net assets)
Investment Advisory Fees (after fee
   waiver)(3)                                                   .35%            .35%        .35%        .35%
12b-1 Fees (after fee waiver)(4)                                .25%            .90%        .90%       none
Other Expenses (after reimbursements)(5)                        .28%            .28%        .28%        .28%
Total Fund Operating Expenses (after fee
     waivers) (6)                                               .88%           1.53%       1.53%        .63%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(5)      Without expense reimbursements, Other Expenses would be .29% for all 
         classes.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.24% for Class A shares, 1.89% for
         Class B shares, 1.89% for Class C shares and .89% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.
    


                                       19
<PAGE>   226


   
<TABLE>
<CAPTION>

                                                         1 YEAR         3 YEARS        5 YEARS        10 YEARS

<S>                                                        <C>            <C>             <C>            <C> 
Class A                                                    $ 39           $ 57            $ 77           $135
Class A (without fee waivers)                              $ 42           $ 68            $ 96           $175
Class B                                                    $ 46           $ 68            $ 83           $165
Class B (without fee waivers)                              $ 49           $ 79            $102           $204
Class C                                                    $ 26           $ 48            $ 83           $182
Class C (without fee waivers)                              $ 29           $ 59            $102           $221
Class I                                                    $  6           $ 20            $ 35           $ 79
Class I (without fee waiver)                               $  9           $ 28            $ 49           $110
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>

                                                         1 YEAR         3 YEARS        5 YEARS        10 YEARS

<S>                                                        <C>            <C>             <C>            <C> 
Class A                                                    $ 39           $ 57            $ 77           $135
Class A (without fee waivers)                              $ 42           $ 68            $ 96           $175
Class B                                                    $ 16           $ 48            $ 83           $165
Class B (without fee waivers)                              $ 19           $ 59            $102           $204
Class C                                                    $ 16           $ 48            $ 83           $182
Class C (without fee waivers)                              $ 19           $ 59            $102           $221
Class I                                                    $  6           $ 20            $ 35           $ 79
Class I (without fee waiver)                               $  9           $ 28            $ 49           $110
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL; EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP SHORT-TERM MUNICIPAL BOND FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by__________, LLP, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    


                                       21
<PAGE>   227


   
ONE GROUP(R) ARIZONA MUNICIPAL BOND FUND
    

INVESTMENT OBJECTIVE

The Fund is a non-diversified fund that seeks current income exempt from Federal
income tax and Arizona personal income tax, consistent with the preservation of
principal.

INVESTMENT STRATEGY

The Fund invests in debt securities issued by or on behalf of Arizona and its
respective authorities, political subdivisions, agencies and instrumentalities,
the interest on which, in the opinion of issuer's counsel, is exempt from
Federal income tax and Arizona personal income tax ("Arizona Municipal
Securities"). The Fund's average weighted maturity normally will be between five
and twenty years, although the Fund may invest in securities of any maturity.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its total assets in Arizona Municipal
Securities. This is a fundamental policy. The Fund also may invest up to 20% of
its total assets in bonds and notes of states (other than Arizona) as well as of
territories and possessions of the United States, including the District of
Columbia, and their respective authorities, agencies, instrumentalities, and
political subdivisions, the interest on which, in the opinion of issuer's
counsel, is exempt from Federal income tax ("Municipal Securities"). The
securities in which the Fund invests may have fixed rates of return or floating
or variable rates. For a list of all securities in which the Fund may invest,
please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in Arizona Municipal Securities, which may be impacted by
economic and political developments in Arizona. The Arizona Municipal Securities
also include fixed income investments. The value of these securities will change
in response to interest rate changes and other factors. Before you invest,
please read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Arizona Municipal Securities
and Municipal Securities the interest on which may be subject to Federal
alternative minimum tax for individuals. Shareholders who are subject to the
Federal alternative minimum tax may have all or a portion of their income from
the Fund subject to Federal income tax. In addition, corporate shareholders will
be required to take the interest on Municipal Securities and Arizona Municipal
Securities into account in determining their alternative minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.



                                       22
<PAGE>   228

<TABLE>
<CAPTION>

SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION
EXPENSES(1)                                          CLASS A            CLASS B           CLASS C          CLASS I
- -----------                                          -------            -------           -------          -------

<S>                                                 <C>                <C>                 <C>            <C> 
Maximum Sales Charge Imposed
   on Purchases
   (as a percentage of
   offering price)                                   4.50%               none                none           none
Maximum Contingent Deferred
   Sales Charge
   (as a percentage of original
   purchase price or redemption
   proceeds, as applicable)                          none(2)            5.00%               1.00%           none
Redemption Fees                                      none               none                none            none
Exchange Fees                                        none               none                none            none
ANNUAL OPERATING EXPENSES(3)
   (as a percentage of
   average daily net assets)
   Investment Advisory Fees
   (after fee waiver)(4)                              .40%               .40%                .40%           .40%
   12b-1 Fees (after fee waiver)(5)                   .25%               .90%                .90%           none
   
   Other Expenses                                     .32%               .32%                .32%           .32%
Total Fund Operating Expenses
   (after fee waivers)(6)                             .97%              1.62%               1.62%           .72%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .45% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.12% for Class A shares, 1.77% for
         Class B shares, 1.77% for Class C shares and .77% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.




                                       23
<PAGE>   229

<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS        5 YEARS     10 YEARS
                                                               ------        -------        -------     --------

<S>                                                              <C>           <C>            <C>          <C> 
Class A                                                          $54           $75            $ 96         $159
Class A (without fee waivers)                                    $56           $79            $104         $175
Class B                                                          $66           $81            $108         $175
Class B (without fee waivers)                                    $68           $86            $116         $191
Class C                                                          $26           $51            $ 88         $192
Class C (without fee waivers)                                    $28           $56            $ 96         $208
Class I                                                          $ 7           $23            $ 40         $ 89
Class I (without fee waiver)                                     $ 8           $25            $ 43         $ 95
</TABLE>


Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS         5 YEARS    10 YEARS
                                                               ------        -------         -------    --------

<S>                                                             <C>            <C>            <C>          <C> 
Class A                                                         $54            $75            $ 96         $159
Class A (without fee waivers)                                   $56            $79            $104         $175
Class B                                                         $16            $51            $ 88         $175
Class B (without fee waivers)                                   $18            $56            $ 96         $191
Class C                                                         $16            $51            $ 88         $192
Class C (without fee waivers)                                   $18            $56            $ 96         $208
Class I                                                         $ 7            $23            $ 40         $ 89
Class I (without fee waiver)                                    $ 8            $25            $ 43         $ 95
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       24
<PAGE>   230


   
ONE GROUP(R) ARIZONA MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance over the past 10 years, or since inception, if less than
10 years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>

                                                                              YEAR               JAN. 20,
                                                                              ENDED                1997
                                                                            JUNE 30,         THROUGH JUNE 30,
CLASS I                                                                       1998                1997(a)
- -------                                                                       ----                -------

<S>                                                                        <C>                  <C>     
NET ASSET VALUE, BEGINNING OF PERIOD                                       $  10.06             $  10.00
Investment Activities:
   Net investment income                                                       0.49                 0.23
   Net realized and unrealized gains from investments                          0.16                 0.06
Total from Investment Activities                                               0.65                 0.29
Distributions:
   Net investment income                                                      (0.49)               (0.23)
   Net realized gain                                                          (0.07)               --
Total Distributions                                                           (0.56)               (0.23)
NET ASSET VALUE, END OF PERIOD                                             $  10.15             $  10.06
Total Return                                                                   6.58%                2.90%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                                       $248,590             $255,755
   Ratio of expenses to average net assets                                     0.59%                0.59%(c)
   Ratio of net investment income to average net assets                        4.79%                5.09%(c)
   Ratio of expenses to average net assets*                                    0.65%                0.66%(c)
   Ratio of net investment income to average net assets*                       4.73%                5.02%(c)
   Portfolio turnover(d)                                                      20.89%                5.66%
</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.




                                       25
<PAGE>   231


<TABLE>
<CAPTION>

                                                                                                         JAN. 20,
                                                                                        YEAR               1997
                                                                                        ENDED             THROUGH
                                                                                      JUNE 30,           JUNE 30,
CLASS A                                                                                 1998              1997(a)
- -------                                                                                 ----              -------

<S>                                                                                    <C>               <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                                                   $ 9.99            $ 10.00
Investment Activities:
   Net investment income                                                                 0.46               0.15
   Net realized and unrealized gains (losses)
      from investments                                                                   0.16              (0.01)
Total from Investment Activities                                                         0.62               0.14
Distributions:
   Net investment income                                                                (0.46)             (0.15)
   Net realized gain                                                                    (0.07)             --
Total Distributions                                                                     (0.53)             (0.15)
NET ASSET VALUE, END OF PERIOD                                                        $ 10.08            $  9.99
Total Return (Excludes Sales Charge)                                                     6.30%              1.40%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                                                  $ 1,321            $ 1,500
   Ratio of expenses to average net assets                                               0.84%              0.85%(c)
   Ratio of net investment income to average net assets                                  4.53%              4.90%(c)
   Ratio of expenses to average net assets*                                              1.01%              0.96%(c)
   Ratio of net investment income to average net assets*                                 4.36%              4.79%(c)
   Portfolio turnover(d)                                                                20.89%              5.66%
</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.




                                       26
<PAGE>   232


   
ONE GROUP(R) ARIZONA MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

<TABLE>
<CAPTION>

                                                                                                        JAN. 20,
                                                                                        YEAR              1997
                                                                                       ENDED             THROUGH
                                                                                      JUNE 30,          JUNE 30,
CLASS B                                                                                 1998             1997(a)
- -------                                                                                 ----             -------

<S>                                                                                    <C>                 <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                   $10.09              $10.00
Investment Activities:
Net investment income                                                                    0.13                0.00
   Net realized and unrealized gains (losses)
from investments                                                                         0.14                0.09
Total from Investment Activities                                                         0.27                0.09
Distributions:
Net investment income                                                                   (0.13)                 --
Net realized gains                                                                      (0.07)                 --
Total Distributions                                                                     (0.20)                 --
NET ASSET VALUE, END OF PERIOD                                                         $10.16              $10.09
Total Return (Excludes Sales Charge)                                                     2.67%               0.90%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)                                                      $  290                  --(c)
Ratio of expenses to average net assets                                                  1.50%                 --(d)
   Ratio of net investment income to average
net assets                                                                               3.88%                 --(d)
Ratio of expenses to average net assets*                                                 1.64%                 --(d)
   Ratio of net investment income to
average net assets*                                                                      3.74%                 --(d)
Portfolio turnover(e)                                                                   20.89%               5.66%
</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)Amount is less than $1,000. (d)Since net assets are less
         than $1,000, ratios have not been presented. (e)Portfolio turnover is
         calculated on the basis of the Fund as a whole without distinguishing
         among the classes of shares issued.



                                       27
<PAGE>   233


   
ONE GROUP(R) WEST VIRGINIA MUNICIPAL BOND FUND
    

INVESTMENT OBJECTIVE

The Fund is a non-diversified fund that seeks current income exempt from Federal
income tax and West Virginia personal income tax, consistent with the
preservation of principal.

INVESTMENT STRATEGY

The Fund invests in debt securities issued by, or on behalf of, West Virginia
and its respective authorities, political subdivisions, agencies and
instrumentalities, the interest on which, in the opinion of issuer's counsel, is
exempt from Federal income tax and West Virginia personal income tax ("West
Virginia Municipal Securities"). Generally, the Fund's average weighted maturity
will be between five and twenty years, although the Fund may invest in
securities of any maturity.

PORTFOLIO SECURITIES

   
The Fund invests at least 80% of its total assets in West Virginia Municipal
Securities. This is a fundamental policy. The Fund also may invest up to 20% of
its total assets in bonds and notes of states (other than West Virginia) as well
as of territories and possessions of the United States, including the District
of Columbia, and their respective authorities, agencies, instrumentalities, and
political subdivisions, the interest on which, in the opinion of issuer's
counsel, is exempt from Federal income tax ("Municipal Securities"). The
securities in which the Fund invests may have fixed rates of return or floating
or variable rates. For a list of all securities in which the Fund may invest,
please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in West Virginia Municipal Securities, which may be impacted by
economic and political developments in West Virginia. The West Virginia
Municipal Securities also include fixed income investments. The value of these
securities will change in response to interest rate changes and other factors.
Before you invest, please read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in West Virginia Municipal
Securities and Municipal Securities the interest on which may be subject to
Federal alternative minimum tax for individuals. Shareholders who are subject to
the Federal alternative minimum tax may have all or a portion of their income
from the Fund subject to Federal income tax. In addition, corporate shareholders
will be required to take the interest on Municipal Securities and West Virginia
Municipal Securities into account in determining their alternative minimum
taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.



                                       28
<PAGE>   234


SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION
EXPENSES(1)                                          CLASS A           CLASS B            CLASS C         CLASS I
- -----------                                          -------           -------            -------         -------

<S>                                                   <C>              <C>               <C>              <C> 
Maximum Sales Charge Imposed
   on Purchases
   (as a percentage of
   offering price)                                    4.50%              none              none            none
Maximum Contingent Deferred
   Sales Charge
   (as a percentage of original
   purchase price or redemption
   proceeds, as applicable)                            none(2)           5.00%             1.00%           none
Redemption Fees                                        none              none              none            none
Exchange Fees                                          none              none              none            none
ANNUAL OPERATING EXPENSES(3)
   (as a percentage of average
   daily net assets)
Investment Advisory Fees (after
   fee waiver)(4)                                      .40%              .40%              .40%             .40%
   
   12b-1 Fees (after fee waiver)(5)                    .25%              .90%              .90%            none
   Other Expenses                                      .32%              .32%              .32%             .32%
Total Fund Operating Expenses
   (after fee waivers)(6)                              .97%             1.62%             1.62%            .72%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .45% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.12% for Class A shares, 1.77% for
         Class B shares, 1.77% for Class C shares and .77% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.




                                       29
<PAGE>   235

<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS         5 YEARS     10 YEARS
                                                               ------        -------         -------     --------

<S>                                                              <C>           <C>           <C>            <C> 
Class A                                                          $54           $75           $ 96           $159
Class A (without fee waivers)                                    $56           $79           $104           $175
Class B                                                          $66           $81           $108           $175
Class B (without fee waivers)                                    $68           $86           $116           $191
Class C                                                          $26           $51           $ 88           $192
Class C (without fee waivers)                                    $28           $56           $ 96           $208
Class I                                                          $ 7           $23           $ 40           $ 89
Class I (without fee waiver)                                     $ 8           $25           $ 43           $ 95
</TABLE>


Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:


<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS       5 YEARS       10 YEARS
                                                               ------        -------       -------       --------

<S>                                                              <C>           <C>          <C>            <C> 
Class A                                                          $54           $75          $ 96           $159
Class A (without fee waivers)                                    $56           $79          $104           $175
Class B                                                          $16           $51          $ 88           $175
Class B (without fee waivers)                                    $18           $56          $ 96           $191
Class C                                                          $16           $51          $ 88           $192
Class C (without fee waivers)                                    $18           $56          $ 96           $208
Class I                                                          $ 7           $23          $ 40           $ 89
Class I (without fee waiver)                                     $ 8           $25          $ 43           $ 95
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       30
<PAGE>   236


   
ONE GROUP(R) WEST VIRGINIA MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>

                                                                            YEAR        JAN. 20, 1997
                                                                            ENDED           THROUGH
                                                                           JUNE 30,         JUNE 30,
CLASS I                                                                      1998           1997(a)
- -------                                                                      ----           -------

<S>                                                                        <C>             <C>     
NET ASSET VALUE, BEGINNING OF PERIOD                                       $  10.06        $  10.00
Investment Activities:
   Net investment income                                                       0.50            0.22
   Net realized and unrealized gains from investments                          0.22            0.06
Total from Investment Activities                                               0.72            0.28
Distributions:
   Net investment income                                                      (0.50)          (0.22)
Total Distributions                                                           (0.50)          (0.22)
NET ASSET VALUE, END OF PERIOD                                             $  10.28        $  10.06
Total Return                                                                   7.36%           2.84%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                                       $102,413        $ 96,270
   Ratio of expenses to average net assets                                     0.60%           0.59%(c)
   Ratio of net investment income to average net assets                        4.93%           5.04%(c)
   Ratio of expenses to average net assets*                                    0.72%           0.67%(c)
   Ratio of net investment income to average net assets*                       4.81%           4.96%(c)
   Portfolio turnover(d)                                                      16.69%           6.21%
</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 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.
    

<TABLE>
<CAPTION>

                                                                            YEAR        JAN. 20, 1997
                                                                            ENDED           THROUGH
                                                                           JUNE 30,        JUNE 30,
CLASS A                                                                      1998           1997(a)
- -------                                                                      ----           -------

<S>                                                                        <C>            <C>     
NET ASSET VALUE, BEGINNING OF PERIOD                                       $  10.15       $  10.00
Investment Activities:
   Net investment income                                                       0.48           0.16
   Net realized and unrealized gains from investments                          0.21           0.15
Total from Investment Activities                                               0.69           0.31
Distributions:
   Net investment income                                                      (0.48)         (0.16)
Total Distributions                                                           (0.48)         (0.16)
NET ASSET VALUE, END OF PERIOD                                             $  10.36       $  10.15
Total Return (Excludes Sales Charge)                                           6.98%          3.08%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)                                          $  2,024       $    808
</TABLE>


                                       30
<PAGE>   237

<TABLE>

<S>                                                                            <C>            <C>     
   Ratio of expenses to average net assets                                     0.85%          0.84%(c)
   Ratio of net investment income to average net assets                        4.68%          4.94%(c)
   Ratio of expenses to average net assets*                                    1.07%          0.97%(c)
   Ratio of net investment income to average net assets*                       4.46%          4.81%(c)
   Portfolio turnover(d)                                                      16.69%          6.21%
</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 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.
    



                                       31
<PAGE>   238


   
ONE GROUP(R) WEST VIRGINIA MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

<TABLE>
<CAPTION>

                                                                           YEAR        JAN. 20, 1997
                                                                          ENDED           THROUGH
                                                                         JUNE 30,        JUNE 30,
CLASS B                                                                    1998           1997(a)
- -------                                                                    ----           -------

<S>                                                                       <C>              <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                      $ 10.12          $10.00
Investment Activities:
   Net investment income                                                     0.42            0.14
   Net realized and unrealized gains from investments                        0.23            0.12
Total from Investment Activities                                             0.65            0.26
Distributions:
   Net investment income                                                    (0.42)          (0.14)
Total Distributions                                                         (0.42)          (0.14)
NET ASSET VALUE, END OF PERIOD                                            $ 10.35          $10.12
Total Return (Excludes Sales Charge)                                         6.57%           2.64%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                                      $ 3,352          $  614
   Ratio of expenses to average net assets                                   1.50%           1.49%(c)
   Ratio of net investment income to average net assets                      4.05%           4.08%(c)
   Ratio of expenses to average net assets*                                  1.72%           1.62%(c)
   Ratio of net investment income to average net assets*                     3.83%           3.95%(c)
   Portfolio turnover(d)                                                    16.69%           6.21%
</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 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.
    



                                       32
<PAGE>   239


   
ONE GROUP(R) LOUISIANA MUNICIPAL BOND FUND
    

INVESTMENT OBJECTIVE

The Fund is a non-diversified fund that seeks current income both consistent
with the preservation of principal and exempt from Federal income tax and
Louisiana income tax.

INVESTMENT STRATEGY

The Fund invests in investment grade municipal securities issued by or on behalf
of Louisiana and its authorities, political subdivisions, agencies and
instrumentalities, the interest on which, in the opinion of issuer's counsel, is
exempt from both Federal income tax and Louisiana state income tax ("Louisiana
Municipal Securities"). The Fund's average weighted maturity normally will be
between five and twenty years, although the Fund may invest in securities of any
maturity.

   
PORTFOLIO SECURITIES

The Fund invests at least 80% of its net assets in Louisiana Municipal
Securities. This is a fundamental policy. The Fund also may hold up to 20% of
its total assets in cash or invest in municipal securities of other states
("Municipal Securities"), short-term taxable investments including repurchase
agreements, and U.S. government securities or other cash equivalents. The
securities in which the Fund invests may have fixed rates of return or floating
or variable rates. For a list of all securities in which the Fund may invest,
please read "Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in Louisiana Municipal Securities, which may be impacted by
economic and political developments in Louisiana. The Louisiana Municipal
Securities also include fixed income investments. The value of these securities
will change in response to interest rate changes and other factors. Before you
invest, please read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Louisiana Municipal
Securities and Municipal Securities the interest on which may be subject to
Federal alternative minimum tax for individuals. Shareholders who are subject to
the Federal alternative minimum tax may have all or a portion of their income
from the Fund subject to Federal income tax. In addition, corporate shareholders
will be required to take the interest on Municipal Securities and Louisiana
Municipal Securities into account in determining their alternative minimum
taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.



                                       33
<PAGE>   240


SHAREHOLDER EXPENSES
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                 CLASS A      CLASS B       CLASS C     CLASS I

<S>                                                                 <C>         <C>           <C>          <C>  
Maximum Sales Charge Imposed on Purchases
   (as a percentage of offering price)                                4.50%       none          none        none
Maximum Contingent Deferred Sales Charge
   (as a percentage of original purchase
   price or redemption proceeds,
   as applicable)                                                   none(2)      5.00%         1.00%        none
Redemption Fees                                                        none       none          none        none
Exchange Fees                                                          none       none          none        none
ANNUAL OPERATING EXPENSES)(3)
   (as a percentage of average daily
   net assets)
Investment Advisory Fees (after
   fee waiver)(4)                                                      .40%       .40%          .40%        .40%
12b-1 Fees (after fee waiver)(5)                                       .25%       .90%          .90%        none
Other Expenses                                                         .32%       .32%          .32%        .32%
Total Fund Operating Expenses
   (after fee waivers)(6)                                              .97%      1.62%         1.62%        .72%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.27% for Class A shares, 1.92% for
         Class B shares, 1.92% for Class C shares and .92% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.








                                       35
<PAGE>   241


<TABLE>
<CAPTION>

                                                               1 YEAR         3 YEARS       5 YEARS      10 YEARS
                                                               ------         -------       -------      --------

<S>                                                              <C>           <C>           <C>          <C> 
Class A                                                          $54           $75           $ 96         $159
Class A (without fee waivers)                                    $57           $83           $112         $191
Class B                                                          $66           $81           $108         $175
Class B (without fee waivers)                                    $69           $90           $124         $207
Class C                                                          $26           $51           $ 88         $192
Class C (without fee waivers)                                    $29           $60           $104         $224
Class I                                                          $ 7           $23           $ 40         $ 89
Class I (without fee waiver)                                     $ 9           $29           $ 51         $113
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:


<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS       5 YEARS      10 YEARS
                                                               ------        -------       -------      --------

<S>                                                              <C>           <C>          <C>            <C> 
Class A                                                          $54           $75          $ 96           $159
Class A (without fee waivers)                                    $57           $83          $112           $191
Class B                                                          $16           $51          $ 88           $175
Class B (without fee waivers)                                    $19           $60          $104           $207
Class C                                                          $16           $51          $ 88           $192
Class C (without fee waivers)                                    $19           $60          $104           $224
Class I                                                          $ 7           $23          $ 40           $ 89
Class I (without fee waiver)                                     $ 9           $29          $ 51           $113
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       36
<PAGE>   242


   
ONE GROUP(R) LOUISIANA MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>

                                                                                                      MARCH 26, 1996
                                                                                       YEAR ENDED        THROUGH
                                                                                        JUNE 30,        JUNE 30,
CLASS I                                                                 1998              1997           1996(a)

<S>                                                                  <C>                <C>            <C>     
NET ASSET VALUE, BEGINNING OF PERIOD                                 $  10.10           $   9.93       $  10.00
Investment Activities:
   Net investment income                                                 0.50               0.49           0.13
   Net realized and unrealized gains
      (losses) from investments                                          0.16               0.17          (0.07)
Total from Investment Activities                                         0.66               0.66           0.06
Distributions:
   Net investment income                                                (0.50)             (0.49)         (0.13)
Total Distributions                                                     (0.50)             (0.49)         (0.13)
NET ASSET VALUE, END OF PERIOD                                       $  10.26           $  10.10       $   9.93
Total Return                                                             6.62%              6.81%          0.90%(b)(c)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                                 $ 92,690           $113,338       $136,041
   Ratio of expenses to average
      net assets                                                         0.60%              0.62%          0.71%(d)
   Ratio of net investment income to
      average net assets                                                 4.85%              4.91%          4.76%(d)
   Ratio of expenses to average
      net assets*                                                        0.83%              0.84%          0.86%(d)
   Ratio of net investment income to
     average net assets*                                                 4.62%              4.69%          4.61%(d)
   Portfolio turnover(e)                                                12.03%             17.39%         16.72%
</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 date reorganized as a fund of 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 Class I
         Shares for the period 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.
    




                                       36
<PAGE>   243

<TABLE>
<CAPTION>
   
                                                       SEVEN
                                                       MONTHS
                                   YEAR ENDED          ENDED
                                     JUNE 30,         JUNE 30,                     YEAR ENDED NOVEMBER 30,
CLASS A                            1998        1997      1996(a)       1995       1994         1993         1992      1991
- -------                            ----        ----      -------       ----       ----         ----         ----      ----
    


<S>                                <C>         <C>       <C>           <C>        <C>          <C>          <C>       <C>  
NET ASSET VALUE,
  BEGINNING OF PERIOD              $10.10      $9.93     $10.09        $9.38      $10.27       $9.92        $9.73     $9.51
Investment Activities:                                                                                              
       Net investment income         0.47       0.47       0.24         0.50        0.49        0.52         0.55      0.56
       Net realized and                                                                                             
         unrealized gains                                                                                           
         (losses) from                                                                                              
         investments                 0.16       0.17      (0.16)        0.71       (0.79)       0.42         0.26      0.22
Total from Investment                                                                                               
       Activities                    0.63       0.64       0.08         1.21       (0.30)       0.94         0.82      0.78
Distributions:                                                                                                      
Net investment income               (0.47)     (0.47)     (0.24)       (0.50)      (0.49)      (0.52)       (0.55)    (0.56)
       Net realized gains              --         --         --           --       (0.10)      (0.07)       (0.07)       --
                                                                                                                    
                                                                                                                    
Total Distributions                 (0.47)     (0.47)     (0.24)       (0.50)      (0.59)      (0.59)       (0.62)    (0.56)
NET ASSET VALUE, END                                                                                                
       OF PERIOD                   $10.26     $10.10      $9.93       $10.09       $9.38      $10.27        $9.92     $9.73
Total Return (Excludes                                                                                              
       Sales Charge)                 6.35%      6.55%      0.84%(b)    13.11%      (2.97)%      9.65%        8.64%     8.45%
RATIOS/Supplementary Data:                                                                                          
       Net Assets at end of                                                                                         
         period (000)             $47,078    $48,498    $53,479     $206,119    $196,820    $196,534     $135,692   $88,503
       Ratio of expenses to                                                                                         
       average net assets            0.85%      0.87%      0.69%(c)     0.62%       0.65%       0.62%        0.58%     0.61%
       Ratio of net investment                                                                                      
         income to average                                                                                          
         net assets                  4.60%      4.66%      4.71%(c)     5.07%       4.97%       5.07%        5.70%     5.86%
       Ratio of expenses to                                                                                         
         average net assets*         1.18%      1.19%      0.86%(c)     0.77%       0.80%       0.78%        0.83%     0.86%
       Ratio of net investment                                                                                      
         income to average                                                                                          
         net assets*                 4.27%      4.34%      4.54%(c)     4.92%       4.82%       4.91%        5.45%     5.61%
       Portfolio turnover(d)        12.03%     17.39%     16.72%       28.00%      24.00%      25.00%       32.00%    35.00%
</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 One Group, the Paragon
         Louisiana Tax-Free Fund became the Louisiana Municipal Bond Fund.
         Financial highlights for the periods prior to March 26, 1996 represents
         the Paragon Louisiana Tax-Free 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 $10.67 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.
    



                                       37
<PAGE>   244


   
ONE GROUP(R) LOUISIANA MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

<TABLE>
<CAPTION>

   
                                                                           SEVEN MONTHS                 SEPT. 16, 1994
                                                       YEAR ENDED               ENDED       YEAR ENDED     THROUGH
                                                        JUNE 30,              JUNE 30,       NOV. 30,     NOV., 30,
CLASS B                                              1998        1997         1996 (a)        1995        1994(b)
- -------                                              ----        ----         --------        ----        -------
    


<S>                                                  <C>          <C>            <C>            <C>        <C>    
NET ASSET VALUE, BEGINNING
   OF PERIOD                                         $10.10       $ 9.93         $10.09         $ 9.36     $  9.73
Investment Activities:
   Net investment income                               0.41         0.40           0.21           0.42        0.08
   Net realized and unrealized
     gains (losses) from investments                   0.16         0.17          (0.16)          0.73       (0.37)
Total from Investment Activities                       0.57         0.57           0.05           1.15       (0.29)
Distributions:
   Net investment income                              (0.41)       (0.40)         (0.21)         (0.42)      (0.08)
Total Distributions                                   (0.41)       (0.40)         (0.21)         (0.42)      (0.08)
NET ASSET VALUE, END OF PERIOD                       $10.26       $10.10          $9.93         $10.09       $9.36
Total Return (Excludes Sales Charge)                   5.69%        5.87%          0.48%(c)      12.52%      (2.94)%(c)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                 $5,474       $3,835         $3,223         $2,115      $  204
   Ratio of expenses to average
     net assets                                        1.50%        1.51%          1.50%(d)       1.37%       1.41%(d)
   Ratio of net investment income to
     average net assets                                3.95%        4.02%          3.98%(d)       4.27%       4.45%(d)
   Ratio of expenses to average
     net assets*                                       1.83%        1.85%          1.70%(d)       1.52%       1.56%(d)
   Ratio of net investment income
     to average net assets*                            3.62%        3.68%          3.78%(d)       4.12%       4.30%(d)
   Portfolio turnover(e)                              12.03%       17.39%         16.72%         28.00%      24.00%
</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 One Group, the Paragon
         Louisiana Tax-Free Fund became the Louisiana Municipal Bond Fund.
         Financial highlights for the periods prior to March 26, 1996 represents
         the Paragon Louisiana Tax-Free 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 $10.70 to $10.00 effective March
         26, 1996. (b)Class B Shares commenced offering on September 16, 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.
    



                                       38
<PAGE>   245


   
ONE GROUP(R) OHIO MUNICIPAL BOND FUND
    

INVESTMENT OBJECTIVE

The Fund is a non-diversified fund that seeks current income exempt from Federal
income tax and Ohio personal income tax, consistent with the preservation of
principal.

INVESTMENT STRATEGY

The Fund invests in debt securities issued by, or on behalf of, Ohio and its
respective authorities, political subdivisions, agencies and instrumentalities,
the interest on which, in the opinion of issuer's counsel, is exempt from
Federal income tax and Ohio personal income tax ("Ohio Municipal Securities").
Generally, the Fund's average weighted maturity will be between five and twenty
years, although the Fund may invest in securities of any maturity.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its total assets in Ohio Municipal Securities.
This is a fundamental policy. The Fund also may invest up to 20% of its total
assets in bonds and notes of states (other than Ohio) as well as territories and
possessions of the United States, including the District of Columbia, and their
respective authorities, agencies, instrumentalities, and political subdivisions,
the interest on which, in the opinion of issuer's counsel, is exempt from
Federal income tax ("Municipal Securities"). The securities in which the Fund
invests may have fixed rates of return or floating or variable rates. For a list
of all securities in which the Fund may invest, please read "Investment
Practices."

RISK CONSIDERATIONS

The Fund invests in Ohio Municipal Securities, which may be impacted by economic
and political developments in Ohio. The Ohio Municipal Securities also include
fixed income investments. The value of these securities will change in response
to interest rate changes and other factors. Before you invest, please read "More
About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Ohio Municipal Securities and
Municipal Securities, the interest on which may be subject to Federal
alternative minimum tax for individuals. Shareholders who are subject to the
Federal alternative minimum tax may have all or a portion of their income from
the Fund subject to Federal income tax. In addition, corporate shareholders will
be required to take the interest on Municipal Securities and Ohio Municipal
Securities into account in determining their alternative minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.



                                       40
<PAGE>   246


SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                               CLASS A       CLASS B       CLASS C     CLASS I

<S>                                                                 <C>                                        
Maximum Sales Charge Imposed on Purchases
   (as a percentage of offering price)                              4.50%        none          none        none
Maximum Contingent Deferred Sales Charge
   (as a percentage of original
   purchase price or redemption proceeds,
   as applicable)                                                 none(2)       5.00%         1.00%        none
Redemption Fees                                                      none        none          none        none
Exchange Fees                                                        none        none          none        none
ANNUAL OPERATING EXPENSES(3)
   (as a percentage of average daily
   net assets)
Investment Advisory Fees (after
   fee waiver)(4)                                                    .40%        .40%          .40%        .40%
12b-1 Fees (after fee waiver)(5)                                     .25%        .90%          .90%        none
Other Expenses                                                       .22%        .22%          .22%        .22%
Total Fund Operating Expenses
   (after fee waivers)(6)                                            .87%       1.52%         1.52%        .62%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .60% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.17% for Class A shares, 1.82% for
         Class B shares, 1.82% for Class C shares and .82% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.




                                       41
<PAGE>   247

<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS        5 YEARS      10 YEARS
                                                               ------        -------        -------      --------

<S>                                                              <C>           <C>            <C>         <C> 
Class A                                                          $53           $72            $ 91        $147
Class A (without fee waivers)                                    $56           $80            $106        $181
Class B                                                          $65           $78            $103        $164
Class B (without fee waivers)                                    $68           $87            $119        $197
Class C                                                          $25           $48            $ 83        $181
Class C (without fee waivers)                                    $28           $57            $ 99        $214
Class I                                                          $ 6           $20            $ 35        $ 77
Class I (without fee waiver)                                     $ 8           $26            $ 46        $101
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                               1 YEAR        3 YEARS        5 YEARS     10 YEARS
                                                               ------        -------        -------     --------

   
<S>                                                           <C>              <C>          <C>           <C> 
Class A                                                       $53              $72           $ 91         $147
Class A (without fee waivers)                                 $56              $80           $106         $181
Class B                                                       $15              $48           $ 83         $164
Class B (without fee waivers)                                 $18              $57           $ 99         $197
Class C                                                       $15              $48           $ 83         $181
Class C (without fee waivers)                                 $18              $57           $ 99         $214
Class I                                                       $ 6              $20           $ 35         $ 77
Class I (without fee waiver)                                  $ 8              $26           $ 46         $101
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       41
<PAGE>   248


   
ONE GROUP(R) OHIO MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>

                                                                      YEAR ENDED JUNE 30,
                                                                      -------------------
CLASS I                                1998         1997         1996        1995        1994     1993     1992(c)
- -------                                ----         ----         ----        ----        ----     ----     -------


   
<S>                                       <C>        <C>          <C>          <C>        <C>       <C>      <C>    
Net Asset Value, Beginning
     of Period                            $ 10.88    $  10.69     $  10.65     $ 10.58    $11.11    $10.48   $ 10.00
Investment Activities:                                                                                       
     Net investment income                   0.56        0.56         0.56        0.55      0.51      0.54      0.56
     Net realized and unrealized                                                                             
     gains (losses) from investments         0.20        0.19         0.04        0.07     (0.50)     0.62      0.47
Total from Investment Activities             0.76        0.75         0.60        0.62      0.01      1.16      1.03
Distributions:                                                                                               
     Net investment income                  (0.56)      (0.56)       (0.56)      (0.55)    (0.52)    (0.53)    (0.55)
     In excess of net realized gains           --          --           --          --     (0.02)       --        --
Total Distributions                         (0.56)      (0.56)       (0.56)      (0.55)    (0.54)    (0.53)    (0.55)
Net Asset Value, End of Period           $  11.08    $  10.88      $ 10.69     $ 10.65   $ 10.58   $ 11.11   $ 10.48
Total Return                                 7.13%       7.22%        5.69%       6.07%     0.07%    11.43%    10.64%(b)
RATIOS/SUPPLEMENTARY DATA:                                                                                   
     Net Assets at end of                                                                                    
     period (000)                        $149,890    $133,172      $80,611     $79,993   $93,261   $74,792   $45,199
     Ratio of expenses to                                                                                    
     average net assets                      0.54%       0.54%        0.57%       0.58%     0.53%     0.55%     0.63%(b)
     Ratio of net investment                                                                                 
     income to average net assets            5.09%       5.24%        5.17%       5.29%     4.76%     5.14%     5.61%(b)
     Ratio of expenses to average                                                                            
     net assets*                             0.83%       0.84%        0.95%       0.91%     0.86%     0.94%     1.21%(b)
     Ratio of net investment income                                                                          
     to average net assets*                  4.80%       4.94%        4.79%       4.96%     4.43%     4.75%     5.03%(b)
Portfolio turnover(a)                       10.49%       7.45%       24.61%      77.69%    16.77%    26.67%     9.78%
    
</TABLE>
*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued. (b)Annualized. (c)Fund commenced operation on July 2, 1991.



                                       43
<PAGE>   249

<TABLE>
<CAPTION>

                                                                      YEAR ENDED JUNE 30,
CLASS A                                1998        1997        1996       1995       1994      1993      1992(c)
- -------                                ----        ----        ----       ----       ----      ----      -------


<S>                                     <C>        <C>         <C>        <C>         <C>       <C>       <C>    
NET ASSET VALUE, BEGINNING
     OF PERIOD                          $ 10.91    $ 10.72     $ 10.68    $ 10.61     $ 11.13   $ 10.48   $ 10.29
Investment Activities:
     Net investment income                 0.54       0.54        0.55       0.53        0.50      0.52      0.20
     Net realized and unrealized
     gains (losses) from
     investments                           0.20       0.19        0.03       0.07       (0.48)     0.64      0.21
Total from Investment Activities           0.74       0.73        0.58       0.60        0.02      1.16      0.41
Distributions:
     Net investment income                (0.54)     (0.54)      (0.54)     (0.51)      (0.50)    (0.51)    (0.22)
     In excess of net investment
     income                                  --         --          --      (0.02)      (0.02)       --        --
     In excess of net realized gains         --         --          --         --       (0.02)       --        --
Total Distributions                       (0.54)     (0.54)      (0.54)     (0.53)      (0.54)    (0.51)    (0.22)
NET ASSET VALUE, END OF PERIOD          $ 11.11    $ 10.91     $ 10.72    $ 10.68     $ 10.61   $ 11.13   $ 10.48
Total Return (Excludes Sales Charge)       6.87%      6.95%       5.44%      5.79%      (0.05)%   11.40%    10.85%(b)
RATIOS/SUPPLEMENTARY DATA:
     Net Assets at end of
     period (000)                       $17,297    $16,114     $16,507    $12,006     $14,883   $13,092   $    41
     Ratio of expenses to average
     net assets                            0.79%      0.79%       0.82%      0.82%       0.78%     0.77%     1.01%(b)
     Ratio of net investment
     income to average net assets          4.83%      4.96%       4.92%      5.01%       4.63%     4.85%     5.16%(b)
     Ratio of expenses to average
     net assets*                           1.18%      1.19%       1.30%      1.25%       1.21%     1.25%     1.40%(b)
     Ratio of net investment income
     to average net assets*                4.44%      4.56%       4.44%      4.58%       4.20%     4.37%     4.77%(b)
Portfolio turnover(a)                     10.49%      7.45%      24.61%     77.69%      16.77%    26.67%     9.78%
</TABLE>


*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued. (b)Annualized. (c)Class A Shares commenced offering on February
         18, 1992.



                                       44
<PAGE>   250


   
ONE GROUP(R) OHIO MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    


<TABLE>
<CAPTION>

                                                                     YEAR ENDED JUNE 30,
                                                                     -------------------
CLASS B                                     1998           1997            1996            1995           1994(a)
- -------                                     ----           ----            ----            ----           -------

<S>                                          <C>            <C>               <C>            <C>          <C>   
NET ASSET VALUE,
   BEGINNING OF PERIOD                       $ 10.98        $ 10.79           $10.75         $10.68       $11.31
Investment Activities:
   Net investment income                        0.47           0.47             0.48           0.43         0.17
   Net realized and
      unrealized gains
      (losses) from
      investments                               0.20           0.19             0.03           0.07        (0.62)
Total from Investment
   Activities                                   0.67           0.66             0.51           0.50        (0.45)
Distributions:
   Net investment income                       (0.47)         (0.47)           (0.47)         (0.43)       (0.17)
   In excess of net
      investment income                        --             --               --             --           (0.01)
Total Distributions                            (0.47)         (0.47)           (0.47)         (0.43)       (0.18)
NET ASSET VALUE, END
   OF PERIOD                                 $ 11.18        $ 10.98           $10.79         $10.75      $ 10.68
Total Return (Excludes
   Sales Charge)                                6.20%          6.26%            4.79%          5.17%       (4.02)%(b)
RATIOS/SUPPLEMENTARY
   DATA:
   Net Assets at end
      of period (000)                        $26,138        $14,316           $8,854         $3,209      $ 2,043
   Ratio of expenses
      to average net
      assets                                    1.44%          1.44%            1.47%          1.48%        1.28%(c)
   Ratio of net investment
      income to average
      net assets                                4.19%          4.33%            4.27%          4.40%        4.23%(c)
   Ratio of expenses to
      average net assets*                       1.83%          1.84%            1.95%          1.91%        1.68%(c)
   Ratio of net investment
      income to average
      net assets*                               3.80%          3.93%            3.79%          3.97%        3.83%(c)
   Portfolio turnover(d)                       10.49%          7.45%           24.61%         77.69%       16.77%
</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)Class B Shares commenced offering on January 14, 1994.
         (b)Not annualized. (c)Annualized. (d)Portfolio turnover is calculated
         on the basis of the Fund as a whole without distinguishing among the
         classes of shares issued.




                                       45
<PAGE>   251


   
ONE GROUP(R) KENTUCKY MUNICIPAL BOND FUND
    

INVESTMENT OBJECTIVE

The Fund is a non-diversified fund that seeks current income exempt from Federal
income tax and Kentucky personal income tax, consistent with the preservation of
principal.

INVESTMENT STRATEGY

The Fund invests in debt securities issued by, or on behalf of, Kentucky and its
respective authorities, political subdivisions, agencies and instrumentalities,
the interest on which, in the opinion of issuer's counsel, is exempt from
Kentucky personal income tax ("Kentucky Municipal Securities"), as well as debt
securities that, in the opinion of issuer's counsel, produce interest that is
exempt from Federal income tax ("Municipal Securities"). Generally, the Fund's
average weighted maturity will be between five and twenty years, although the
Fund may invest in securities of any maturity.

PORTFOLIO SECURITIES

   
The Fund invests at least 80% of its total assets in Municipal Securities.
Alternatively, the Fund invests its assets so that at least 80% of its annual
interest income is exempt from Federal income tax. The Fund invests at least 65%
of its total assets in Kentucky Municipal Securities. Each of these investment
policies is fundamental. The Fund may also invest up to 35% of its total assets
in bonds and notes of states (other than Kentucky) as well as territories and
possessions of the United States, including the District of Columbia, and their
respective authorities, agencies, instrumentalities, and political subdivisions,
the interest on which is exempt from Federal income tax. The securities in which
the Fund invests may have fixed rates of return or floating or variable rates.
For a list of all securities in which the Fund may invest, please read
"Investment Practices."
    

RISK CONSIDERATIONS

The Fund invests in Kentucky Municipal Securities, which may be impacted by
economic and political developments in Kentucky. The Fund's investments also
include fixed income investments. The value of these securities will change in
response to interest rate changes and other factors. Before you invest, please
read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Kentucky Municipal Securities
and Municipal Securities the interest on which may be subject to Federal
alternative minimum tax for individuals. Shareholders who are subject to the
Federal alternative minimum tax may have all or a portion of their income from
the Fund subject to Federal income tax. In addition, corporate shareholders will
be required to take the interest on Municipal Securities and Kentucky Municipal
Securities into account in determining their alternative minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.



                                       46
<PAGE>   252


SHAREHOLDER EXPENSES
<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES(1)                                CLASS A       CLASS B      CLASS C      CLASS I

<S>                                                                <C>           <C>          <C>          <C> 
Maximum Sales Charge Imposed on Purchases
   (as a percentage of offering price)                               4.50%         none         none        none
Maximum Contingent Deferred Sales Charge
   (as a percentage of original
   purchase price or redemption proceeds,
   as applicable)                                                   none(2)       5.00%        1.00%        none
Redemption Fees                                                       none         none         none        none
Exchange Fees                                                         none         none         none        none
ANNUAL OPERATING EXPENSES(3)
   (as a percentage of average
   daily net assets)
Investment Advisory Fees (after
   fee waiver)(4)                                                     .40%         .40%         .40%        .40%
   12b-1 Fees (after fee waiver)(5)                                   .25%         .90%         .90%        none
   Other Expenses                                                     .32%         .32%         .32%        .32%
Total Fund Operating Expenses
   (after fee waivers)(6)                                             .97%        1.62%        1.62%        .72%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Without the fee waiver, Investment Advisory Fees would be .45% for all
         classes of shares.

(5)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.12% for Class A shares, 1.77% for
         Class B shares, 1.77% for Class C shares and .77% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.




                                       47
<PAGE>   253



<TABLE>

<S>                                                              <C>           <C>           <C>          <C> 
Class A                                                          $54           $75           $ 96         $159
Class A (without fee waivers)                                    $56           $79           $104         $175
Class B                                                          $66           $81           $108         $175
Class B (without fee waivers)                                    $68           $86           $116         $191
Class C                                                          $26           $51           $ 88         $192
Class C (without fee waivers)                                    $28           $56           $ 96         $208
Class I                                                          $ 7           $23           $ 40         $ 89
Class I (without fee waiver)                                     $ 8           $25           $ 43         $ 95
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>

                                                               1 YEAR        3 YEARS        5 YEARS      10 YEARS
                                                               ------        -------        -------      --------

<S>                                                              <C>           <C>           <C>          <C> 
Class A                                                          $54           $75           $ 96         $159
Class A (without fee waivers)                                    $56           $79           $104         $175
Class B                                                          $16           $51           $ 88         $175
Class B (without fee waivers)                                    $18           $56           $ 96         $191
Class C                                                          $16           $51           $ 88         $192
Class C (without fee waivers)                                    $18           $56           $ 96         $208
Class I                                                          $ 7           $23           $ 40         $ 89
Class I (without fee waiver)                                     $ 8           $25           $ 43         $ 95
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       48
<PAGE>   254


   
ONE GROUP(R) KENTUCKY MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years or since inception, if less than 10
years. Certain information reflects financial results for a single Fund share.
The total returns in the table represent the rate a shareholder would have
earned on an investment in the Fund (assuming reinvestment of all dividends and
distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
   
                                                                              JANUARY 20, FEBRUARY 1,    MARCH 12,
                                                YEAR ENDED JUNE 30,            1995 TO     1994 TO       1993 TO
                                                ------------------              JUNE 30,   JANUARY 19,   JANUARY 31,
CLASS I                                     1998        1997           1996     1995(a)     1995(b)     1994(b)(c)
- -------                                     ----        ----           ----     -------     -------     ----------
    

<S>                                          <C>          <C>         <C>         <C>          <C>            <C>    
NET ASSET VALUE, BEGINNING
   OF PERIOD                                 $  10.20     $  10.04    $  9.92     $  9.49      $ 10.45        $ 10.00
Investment Activities:                                                                                        
   Net investment income                         0.51         0.50       0.50        0.20         0.41           0.36
   Net realized and unrealized                                                                                
     gains (losses) from                                                                                      
     investments                                 0.20         0.16       0.12        0.43        (0.95)          0.43
Total from Investment                                                                                         
   Activities                                    0.71         0.66       0.62        0.63        (0.54)          0.79
Distributions:                                                                                                
   Net investment income                        (0.51)       (0.50)     (0.50)      (0.20)       (0.42)         (0.34)
Total Distributions                             (0.51)       (0.50)     (0.50)      (0.20)       (0.42)         (0.34)
NET ASSET VALUE, END OF PERIOD               $  10.40     $  10.20    $ 10.04     $  9.92      $  9.49        $ 10.45
Total Return                                     7.11%        6.74%      6.35%       6.56%(d)    (5.17)%(d)      8.05%(d)
RATIOS/SUPPLEMENTARY DATA:                                                                                    
   Net Assets at end of                                                                                       
     period (000)                            $122,220     $116,830    $30,300     $32,520      $41,953        $64,663
   Ratio of expenses to                                                                                       
     average net assets                          0.60%        0.59%      0.68%       0.65%(e)     1.03%(e)       0.70%(e)
   Ratio of net investment                                                                                    
     income to average net assets                4.94%        5.12%      4.60%       4.70%(e)     4.27%(e)       4.19%(e)
   Ratio of expenses to average                                                                               
     net assets*                                 0.69%        0.72%      1.02%       0.97%(e)     1.05%(e)       0.91%(e)
   Ratio of net investment                                                                                    
     income to average net                                                                                    
     assets*                                     4.85%        4.99%      4.26%       4.38%(e)     4.25%(e)       3.98%(e)
   Portfolio turnover(f)                         5.81%       13.30%     16.78%      19.75%       10.00%          5.00%
</TABLE>
                                                                
*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from date reorganized as a fund of One Group.
         (b) Prior to reorganizing as a fund of One Group, the Fund offered only
         one class of shares. (c)Period from commencement of operations. (d)Not
         annualized. (e)Annualized. (f)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.
    




                                       49
<PAGE>   255

<TABLE>
<CAPTION>
                                                                                                     
                                                                                                     JANUARY 20, 
                                                                     YEAR ENDED JUNE 30,               1995 TO   
                                                                     -------------------              JUNE 30,   
CLASS A                                                      1998             1997         1996        1995(a)
- -------                                                      ----             ----         ----        -------

<S>                                                             <C>             <C>          <C>         <C>    
NET ASSET VALUE, BEGINNING
   OF PERIOD                                                    $ 10.21         $ 10.05      $  9.93     $  9.49
Investment Activities:
   Net investment income                                           0.49            0.48         0.44        0.19
   Net realized and unrealized
      gains from investments                                       0.20            0.16         0.12        0.44
Total from Investment Activities                                   0.69            0.64         0.56        0.63
Distributions:
   Net investment income                                          (0.49)          (0.48)       (0.44)      (0.19)
Total Distributions                                               (0.49)          (0.48)       (0.44)      (0.19)
NET ASSET VALUE, END OF PERIOD                                  $ 10.41         $ 10.21      $ 10.05     $  9.93
Total Return (Excludes Sales Charge)                               6.86%           6.46%        5.70%       5.66%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of period (000)                            $ 7,899         $ 5,554      $ 8,178     $ 8,818
   Ratio of expenses to average
      net assets                                                   0.85%           0.84%        0.93%       0.90%(c)
   Ratio of net investment income
      to average net assets                                        4.69%           4.66%        4.35%       4.44%(c)
   Ratio of expenses to average
      net assets*                                                  1.04%           1.04%        1.37%       1.33%(c)
   Ratio of net investment income
      to average net assets*                                       4.50%           4.46%        3.91%       4.01%(c)
   Portfolio turnover(d)                                           5.81%          13.30%       16.78%      19.75%
</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 One Group.
         (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.
    



                                       50
<PAGE>   256


   
ONE GROUP(R) KENTUCKY MUNICIPAL BOND FUND  FINANCIAL HIGHLIGHTS
    


<TABLE>
<CAPTION>
                                                                                                  MARCH 16, 1995
                                                                                                         TO
                                                                  YEAR ENDED JUNE 30,                 JUNE 30,
CLASS B                                                   1998            1997            1996         1995(a)
- -------                                                   ----            ----            ----        --------

<S>                                                          <C>            <C>            <C>           <C>   
NET ASSET VALUE, BEGINNING
   OF PERIOD                                                 $10.15         $  9.99        $   9.87      $ 9.75
Investment Activities:
   Net investment income                                       0.42            0.41            0.38        0.14
   Net realized and unrealized
      gains from investments                                   0.20            0.16            0.13        0.12
Total from Investment Activities                               0.62            0.57            0.51        0.26
Distributions:
   Net investment income                                      (0.42)          (0.41)          (0.39)      (0.14)
Total Distributions                                           (0.42)          (0.41)          (0.39)      (0.14)
NET ASSET VALUE, END OF PERIOD                               $10.35          $10.15         $  9.99      $ 9.87
Total Return (Excludes Sales Charge)                           6.20%           5.81%           5.16%       2.63%(b)
RATIOS/SUPPLEMENTARY DATA:
   Net Assets at end of
      period (000)                                           $5,581          $2,399         $ 1,457      $  79
Ratio of expenses to average
      net assets                                               1.51%           1.47%           1.58%       1.58%(c)
   Ratio of net investment income
      to average net assets                                    4.04%           4.05%           3.70%       3.89%(c)
   Ratio of expenses to average
      net assets*                                              1.70%           1.70%           2.02%       2.21%(c)
   Ratio of net investment
      income to average net assets*                            3.85%           3.82%           3.26%       3.25%(c)
   Portfolio turnover(d)                                       5.81%          13.30%          16.78%      19.75%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Class B Shares commenced offering on March 16, 1995.
         (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.



                                       51
<PAGE>   257


   
ONE GROUP(R) MICHIGAN MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE

The Fund is a non-diversified fund that seeks current income exempt from Federal
income tax and Michigan personal income tax, consistent with the preservation of
principal.

INVESTMENT STRATEGY

The Fund invests in debt securities issued by or on behalf of Michigan and its
respective authorities, political subdivisions, agencies and instrumentalities,
the interest on which, in the opinion of issuer's counsel, is exempt from
Federal income tax and Michigan personal income tax ("Michigan Municipal
Securities"). The Fund may invest in securities of any maturity.

PORTFOLIO SECURITIES

The Fund invests at least 80% of its total assets in Michigan Municipal
Securities. This is a fundamental policy. The Fund also may invest up to 20% of
its total assets in bonds and notes of states (other than Michigan) as well as
of territories and possessions of the United States, including the District of
Columbia, and their respective authorities, agencies, instrumentalities, and
political subdivisions, the interest on which, in the opinion of issuer's
counsel, is exempt from Federal income tax ("Municipal Securities"). The
securities in which the Fund invests may have fixed rates of return or floating
or variable rates. For a list of all securities in which the Fund may invest,
please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in Michigan Municipal Securities, which may be impacted by
economic and political developments in Michigan. The Fund's investments also
include fixed income investments. The value of these securities will change in
response to interest rate changes and other factors. Before you invest, please
read "More About the Funds" and "Investment Risks."

TAX CONSIDERATIONS

Up to 100% of the Fund's assets may be invested in Michigan Municipal Securities
and Municipal Securities the interest on which may be subject to Federal
alternative minimum tax for individuals. Shareholders who are subject to the
Federal alternative minimum tax may have all or a portion of their income from
the Fund subject to Federal income tax. In addition, corporate shareholders will
be required to take the interest on Municipal Securities and Michigan Municipal
Securities into account in determining their alternative minimum taxable income.

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts and fixed
income traders. The team works together to establish general duration and sector
strategies for the Fund. Each team member makes recommendations about securities
in the Fund. The research analysts and trading personnel provide individual
security and sector recommendations, while the portfolio managers select and
allocate individual securities in a manner designed to meet the investment
objectives of the Fund.
    


                                       52
<PAGE>   258


   
SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES (1)                      CLASS A      CLASS B         CLASS C         CLASS I
- ------------------------------------                      -------      -------         -------         -------

<S>                                                       <C>          <C>              <C>             <C> 
Maximum Sales Charge Imposed on Purchases
   (as a percentage of offering price)                    4.50%          none            none           none
Maximum Contingent Deferred Sales Charge
   (as a percentage of original purchase
   price or redemption proceeds, as
   applicable)                                             none(2)     5.00%            1.00%           none
Redemption Fees                                            none         none             none           none
Exchange Fees                                              none         none             none           none

ANNUAL OPERATING EXPENSES

(as a percentage of average daily net assets)

Investment Advisory Fees (after fee
   waiver)(3)                                              .40%         .40%             .40%            .40%
12b-1 Fees (after fee waiver)(4)                           .25%         .90%             .90%            none
Other Expenses (after reimbursements)(5)                   .25%         .25%             .25%            .25%
Total Fund Operating Expenses (after fee
   waivers)(6)                                             .90%        1.55%            1.55%            .65%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Without the fee waiver, Investment Advisory Fees would be .45% for all
         classes of shares.

(4)      Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .35%
         for Class A shares and 1.00% for Class B and Class C shares.

(5)      Without expense reimbursements, Other Expenses would be .26% for all 
         classes of shares.

(6)      Without the voluntary reduction of Investment Advisory and 12b-1 fees,
         Total Operating Expenses would be 1.06% for Class A shares, 1.71% for
         Class B shares, 1.71% for Class C shares and .71% for Class I shares.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.
    



                                       52
<PAGE>   259


   
<TABLE>
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                               <C>               <C>                 <C>               <C> 
Class A                                           $ 54              $ 72                $ 93              $151
Class A (without fee waivers)                     $ 55              $ 77                $101              $169
Class B                                           $ 66              $ 79                $104              $167
Class B (without fee waivers)                     $ 67              $ 84                $113              $185
Class C                                           $ 26              $ 49                $ 84              $185
Class C (without fee waivers)                     $ 27              $ 54                $ 93              $202
Class I                                           $  7              $ 21                $ 36              $ 81
Class I (without fee waiver)                      $  7              $ 23                $ 40              $ 88
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                  1 YEAR            3 YEARS          5 Years          10 YEARS
                                                  ------            -------          -------          --------

<S>                                               <C>               <C>                 <C>               <C> 
Class A                                           $ 54              $ 72                $ 93              $151
Class A (without fee waivers)                     $ 55              $ 77                $101              $169
Class B                                           $ 16              $ 49                $ 84              $167
Class B (without fee waivers)                     $ 17              $ 54                $ 93              $185
Class C                                           $ 16              $ 49                $ 84              $185
Class C (without fee waivers)                     $ 17              $ 54                $ 93              $202
Class I                                           $  7              $ 21                $ 36              $ 81
Class I (without fee waiver)                      $  7              $ 23                $ 40              $ 88
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF THE PAST OR FUTURE
EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


ONE GROUP MICHIGAN MUNICIPAL BOND FUND FINANCIAL HIGHLIGHTS
    

                                       54
<PAGE>   260

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception, if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by____________, LLP, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    

                                       55
<PAGE>   261

MORE ABOUT THE FUNDS

WHEN THE PROSPECTUS REFERS TO "BONDS," WHAT TYPES OF INVESTMENTS ARE INCLUDED?

   
"Bonds" include debt instruments issued by the U.S. Treasury, U.S. government
agencies, mortgage related securities, municipalities and zero coupon
obligations as well as debt instruments issued by states and their respective
authorities, political subdivisions, agencies and instrumentalities.
    

PORTFOLIO QUALITY

The Funds only purchase securities that meet certain rating criteria:

- -        Municipal Securities that are bonds must be rated as investment grade.

   
- -        Arizona Municipal Securities, West Virginia Municipal Securities,
         Louisiana Municipal Securities, Ohio Municipal Securities, Kentucky
         Municipal Securities and Michigan Municipal Securities that are bonds
         must be rated as investment grade.
    

- -        Other securities such as taxable and tax-exempt commercial paper,
         notes, and variable demand obligations must be rated in one of the two
         highest investment grade categories.

- -        The Louisiana Municipal Bond Fund may also invest in short-term
         tax-exempt municipal securities rated at least MIG3 (VMIG3) by Moody's
         or SP-2 by S&P. These securities may have speculative characteristics.

If the securities are unrated, Banc One Investment Advisors must determine that
they are of comparable quality to rated securities. Banc One Investment Advisors
will look at a security's rating at the time of investment. For more information
about ratings, please see "Description of Ratings" in the Appendix.

ILLIQUID INVESTMENTS

   
Each Fund may invest up to 15% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by the One Group Board of Trustees in determining whether an
investment is illiquid.
    

SPECIAL RISK CONSIDERATIONS

FIXED INCOME SECURITIES: Investments in fixed income securities (for example,
bonds) will increase or decrease in value based on changes in interest rates. If
rates increase, the value of a Fund's investments generally declines. On the
other hand, if rates fall, the value of the investments generally increases. The
value of your investment in a Fund will increase and decrease as the value of a
Fund's investments increase and decrease. While securities with longer duration
and maturities tend to produce higher yields, they also are subject to greater
fluctuations in value when interest rates change. Usually, changes in the value
of fixed income securities will not affect cash income generated, but may affect
the value of your investment. Fixed income securities also are subject to the
risk that the issuer of the security will be unable to meet its repayment
obligation.

   
DERIVATIVES: Some of the Funds may invest in securities that are considered to
be "derivatives." Derivatives are securities or contracts that derive their
value from the performance of underlying assets or securities.
These include:
    

- -        options

- -        futures contracts



                                       55
<PAGE>   262

- -        options on futures contracts

   
- -        mortgage-backed securities, including collateralized mortgage
         obligations and Real Estate Mortgage Investment Conduits (CMOs and
         REMICs) and stripped mortgage-backed (Interest Only (IOs) and Principal
         Only (POs)) securities.
    

- -        structured instruments

- -        swaps, caps and floors

- -        new financial products

- -        inverse floating rate instruments

These securities may be more volatile than other investments. Derivatives
present, to varying degrees, market, credit, leverage, liquidity, and management
risks. The Fund's use of derivatives may cause the Fund to recognize higher
amounts of short-term capital gains (generally taxed at ordinary income tax
rates) than it would if the Fund did not use such instruments. For a more
detailed discussion of these risks, please read "Investment Risks".

   
NON-DIVERSIFIED FUNDS: All of the Funds (except the Intermediate Tax-Free Bond
Fund, the Municipal Income Fund, the Short-Term Municipal Bond Fund and the
Tax-Free Bond Fund) are "non-diversified" funds. This means that the Funds may
invest a more significant portion of their assets in the securities of a single
issuer than can a "diversified" fund. In addition, the Funds' investments are
concentrated geographically. These concentrations increase the risk of loss to
the Funds if an issuer fails to make interest or principal payments or if the
market value of a security declines.

MUNICIPAL SECURITIES: Because the Arizona Municipal Bond Fund, the West Virginia
Municipal Bond Fund, the Louisiana Municipal Bond Fund, the Ohio Municipal Bond
Fund, the Kentucky Municipal Bond Fund, and the Michigan Municipal Bond Fund are
not diversified and because they concentrate in securities of Arizona, West
Virginia, Louisiana, Ohio, Kentucky and Michigan issuers, respectively, certain
factors may have a disproportionate negative effect on the Funds' investments.
These factors may include certain economic conditions, constitutional
amendments, legislative measures, executive orders, administrative regulations
and voter initiatives. For instance, the Ohio economy relies to a significant
degree on manufacturing. As a result, economic activity in Ohio tends to be
cyclical, which may affect the market value of Ohio Municipal Securities or the
ability of issuers to make timely payments of interest and principal. In
addition, agriculture is an important segment of the Ohio economy, and the state
has instituted several programs to provide financial assistance to farmers.
Similarly, coal mining and related industries are an important part of the West
Virginia economy. Increased government regulation and a reduced demand for coal
has adversely affected that industry. While revenues in recent years have been
adequate, an aging population and little or no population growth have put
increasing financial pressure on state and local governments.
    

The Louisiana economy, like that of West Virginia, is heavily dependent on a
single industry, in this case energy (oil and gas). Louisiana continues to
recover from the oil price declines of the mid-1980's, although its debt burden
is well above that of other states, while wealth and income indicators are below
the national average. Both West Virginia and Louisiana post unemployment rates
above the national average.

Arizona's population growth continues to outpace the national average. However,
this growth is expensive and Arizona's economic outlook depends on its ability
to match long-term revenues with expenditures. In addition, Arizona's continued
growth depends to some extent on its ability to manage its water resources.

As of June 30, 1998, the Kentucky unemployment rate was below the national
average, and the state showed a surplus in its General Fund for the prior fiscal
year. However, unlike the municipal securities of 


                                       57
<PAGE>   263

most states, nearly all Kentucky Municipal Securities are not general
obligations of the issuer; rather, payment depends on revenues generated by the
property financed by the security.

   
The Michigan economy is heavily dependent on the automobile industry, a highly
cyclical industry. This affects the revenue streams of the State and local
governments because of its impact on tax sources, particularly sales taxes,
income taxes, and Michigan single business taxes. State and local revenues also
are affected by statutory and constitutional changes adopted in 1993 and 1994,
which limit annual assessment increases and transfer the financing of education
costs from property taxes to sales taxes.
    

For a more complete description of the risks of investing in state specific
securities, please see the Statement of Additional Information.

   
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS
    

PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

- -        The One Group Services Company, and

- -        Shareholder Servicing Agents. These include investment advisors,
         brokers, financial planners, banks, insurance companies, retirement or
         401(k) plan sponsors, or other intermediaries. Shares purchased this
         way will be held for you by the Shareholder Servicing Agent.

WHEN CAN I BUY SHARES?

- -        Purchases may be made on any business day. This includes any day that
         the Funds are open for business, other than weekends, days on which the
         New York Stock Exchange ("NYSE") is closed, and the following holidays:
         New Years Day, Martin Luther King, Jr. Day, Presidents' Day, Good
         Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving, and
         Christmas.

- -        Purchase requests received by The One Group Services Company before
         4:00 p.m. Eastern time ("ET"), will be effective that day. On occasion,
         the NYSE will close before 4:00 p.m. When that happens, purchases
         received after the NYSE closes will be effective the following business
         day.

- -        Purchase orders may be cancelled by the Fund's Custodian, State Street
         Bank and Trust Company, if it does not receive "federal funds" by 4:00
         p.m. ET (i) on the business day after the order is placed if you are
         buying Class I shares, and (ii) on the third business day if you are
         purchasing Class A, Class B or Class C shares.

- -        If your shares are held by a Shareholder Servicing Agent, it is the
         responsibility of the Shareholder Servicing Agent to send your purchase
         or redemption order to the Fund. Your Shareholder Servicing Agent may
         have an earlier cut-off time for purchase and redemption requests.

- -        The One Group Services Company can reject a purchase order if it does
         not think that it is in the best interests of a Fund and/or its
         shareholders to accept the order.

- -        Shares are electronically recorded. Therefore, certificates will not be
         issued.

WHAT KIND OF SHARES CAN I BUY?

   
One Group offers the following classes of shares:
    


                                       58
<PAGE>   264

- -        Class A, Class B and Class C shares are available to the general
         public.

- -        Class I shares are available to institutional investors and any
         organization authorized to act in a fiduciary, advisory, custodial or
         agency capacity. We refer to these entities as "Intermediaries."

- -        If you intend to hold your shares six or more years, Class B shares may
         be appropriate for you. If you intend to hold your shares for less than
         six years, you may want to consider Class A or Class C shares.

HOW MUCH DO SHARES COST?

- -        Shares are sold at net asset value ("NAV") plus a sales charge, if any.

- -        Each class of shares in each Fund has a different NAV. This is
         primarily because each class has different distribution expenses.

- -        NAV per share is calculated by dividing the total market value of a
         Fund's investments and other assets allocable to a class (minus class
         expenses) by the number of outstanding shares in that class.

- -        A Fund's NAV changes every day. NAV is calculated each business day
         following the close of the NYSE at 4:00 p.m. ET. On occasion, the NYSE
         will close before 4:00 p.m. ET. When that happens, NAV will be
         calculated as of the time the NYSE closes.

HOW DO I OPEN AN ACCOUNT?

1.       Read the prospectus carefully, and select the Fund or Funds most
         appropriate for you.

2.       Decide how much you want to invest.

         -        The minimum initial investment is $1,000 ($100 for employees
                  of BANK ONE CORPORATION and its affiliates).

         -        Subsequent investments must be at least $100 ($25 for
                  employees of BANK ONE CORPORATION and its affiliates).

         -        You may purchase no more than $250,000 of Class B shares at
                  one time.

         -        The One Group Services Company may waive these minimums.

3.       Complete the Account Application Form. Be sure to sign up for all of
         the Account privileges that you plan to take advantage of. Doing so now
         means that you will not have to complete additional paperwork later.

   
4.       Send the completed application and a personal check (unless you choose
         to pay by wire or bank transfer) payable to "One Group" to:

         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528
    

5.       All checks should be in U.S. dollars. Third party checks will not be
         accepted. Redemptions from a Fund will not be permitted for ten (10)
         calendar days if purchases are made by check or under the Systematic
         Investment Plan (see below).


                                       59
<PAGE>   265

6.       If you purchase shares through a Shareholder Servicing Agent, you may
         be required to complete additional forms or follow additional
         procedures. You should contact your Shareholder Servicing Agent
         regarding purchases, exchanges and redemptions.

7.       If you have any questions, contact your Shareholder Servicing Agent or
         call The One Group Services Company at 1-800-480-4111.

CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes. Simply select this option on your Account Application Form and then:

- -        Contact your Shareholder Servicing Agent or The One Group Services
         Company at 1-800-480-4111 to relay your purchase instructions.


   
- -        Send a personal check made payable to "One Group" to State Street Bank
         and Trust Company (see address above), authorize a bank transfer or
         initiate a wire transfer to the following wire address:
    

         State Street Bank & Trust Company
         Attn: Custody & Shareholder Services
         ABA 011 000 028
         DDA 99034167

   
         FBO One Group Fund (ex: One Group Intermediate Tax-Free Bond Fund--A)
         Your Account Number (ex: 123456789)
         Your Account Registration (ex: John Smith & Mary Smith, JTWROS)

- -        One Group uses reasonable procedures to confirm that instructions given
         by telephone are genuine. These procedures include recording telephone
         instructions and asking for personal identification. If these
         procedures are followed, One Group will not be responsible for any
         loss, liability, cost or expense of acting upon unauthorized or
         fraudulent instructions; you bear the risk of loss.
    

- -        You may revoke your right to make purchases over the telephone by
         sending a letter to:

   
         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528
    




                                       60
<PAGE>   266


CAN I AUTOMATICALLY INVEST ON A SYSTEMATIC BASIS?

Yes. After your Account is established, you may purchase additional Class A,
Class B and Class C shares by making automatic monthly investments from your
bank account. The minimum initial investment is still $1,000, but minimum
automatic additions are only $25. The One Group Services Company may waive these
minimums. To establish a Systematic Investment Plan:

- -        Select the "Systematic Investment Plan" option on the Account
         Application Form.

- -        Provide the necessary information about the bank account from which
         your investments will be made.

- -        Shares purchased under a Systematic Investment Plan may not be redeemed
         for ten (10) calendar days.

   
- -        One Group currently does not charge for this service, but may impose a
         charge in the future. However, your bank may impose a charge for
         debiting your bank account.
    

- -        You may revoke your right to make systematic investments by calling The
         One Group Services Company at 1-800-480-4111 or by sending a letter to:

   
         State Street Bank and Trust Company 
         c/o One Group
         P.O. Box 8528 
         Boston, MA 02266-8528
    

CONVERSION FEATURE

Your Class B shares automatically convert to Class A shares after eight years
(measured from the end of the month in which they were purchased).

- -        After conversion, your shares will be subject to the lower distribution
         and shareholder servicing fees charged on Class A shares.

- -        You will not be assessed any sales charges or fees for conversion of
         shares, nor will you be subject to any Federal income tax.

- -        Because the share price of the Class A shares may be higher than that
         of the Class B shares at the time of conversion, you may receive fewer
         Class A shares; however, the dollar value will be the same.

- -        If you have exchanged Class B shares of one Fund for Class B shares of
         another, the time you held the shares in each Fund will be added
         together.

SALES CHARGES

   
The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from: sales charges, 12b-1 fees and
payments by The One Group Services Company from its own resources. Occasionally,
The One Group Services Company, at its own expense, also will provide cash
incentives to select Shareholder Servicing Agents. Those Shareholder Servicing
Agents who may receive special incentives include Banc One Securities
Corporation, The Advisors Group, United Planners Financial Services of America,
Inc., The Legend Group, and Rosewood Retirement Advisory Services, LLC. The One
Group Services Company pays additional compensation to Shareholder Servicing
Agents for sales of over $1 million dollars of Class A shares. Shareholder
Servicing 
    


                                       60
<PAGE>   267

   
Agents receive 1.00% of the purchase price of Class A shares for sales of $1
million to $5 million, and 0.50% on amounts over $5 million.
    


CLASS A SHARES

   
If you buy Class A shares of any Fund described in this prospectus, other than
the Short-Term Municipal Bond Fund, this table shows the amount of sales charge
you pay and the commissions paid to Shareholder Servicing Agents.
    

<TABLE>
<CAPTION>

                                         SALES CHARGE
                                            AS A %                  SALES CHARGE                   COMMISSION
                                            OF THE                    AS A % OF                     AS A % OF
AMOUNT OF PURCHASE                      OFFERING PRICE             YOUR INVESTMENT               OFFERING PRICE
- ------------------                      --------------             ---------------               --------------

<S>                                            <C>                       <C>                         <C>  
Less than $100,000                             4.50%                     4.71%                       4.05%
$100,000-$249,999                              3.50%                     3.63%                       3.05%
$250,000-$499,999                              2.50%                     2.56%                       2.05%
$500,000-$999,999                              2.00%                     2.04%                       1.60%
$1,000,000*                                    0.00%                     0.00%                       0.00%
</TABLE>

   
If you buy Class A shares of the Short-Term Municipal Bond Fund, the following
table shows the amount of sales charge and the commissions paid to Shareholder
Servicing Agents.

<TABLE>
<CAPTION>
                                         SALES CHARGE
                                            AS A %                  SALES CHARGE                   COMMISSION
                                            OF THE                    AS A % OF                     AS A % OF
AMOUNT OF PURCHASE                      OFFERING PRICE             YOUR INVESTMENT               OFFERING PRICE
- ------------------                      --------------             ---------------               --------------

<S>                                          <C>                        <C>                          <C>   
Less than $100,000                           3.00%                      3.09%                        2.70% 
$100,000-$249,999                            2.50%                      2.56%                        2.18%
$250,000-$499,999                            2.00%                      2.04%                        1.64% 
$500,000-$999,999                            1.50%                      1.52%                        1.20%
$1,000,000*                                  0.00%                      0.00%                        0.00%
</TABLE>


*        If you purchase $1 million or more of Class A shares and are not
assessed a sales charge at the time of purchase, you will be charged the
equivalent of 1% of the purchase price if you redeem any or all of the Class A
shares within one year of purchase and 0.50% of the purchase price if you redeem
within two years of purchase, unless The One Group Services Company receives
notice before you invest indicating that your Shareholder Servicing Agent is
waiving its commission.
    


CLASS B SHARES

   
Class B shares are offered at NAV, without any up-front sales charges. However,
if you redeem Class B shares of any Fund, other than the Short-Term Municipal
Bond Fund, within six years of the purchase date, you will be assessed a
Contingent Deferred Sales Charge ("CDSC") according to the following schedule:
    




                                       61
<PAGE>   268



<TABLE>
<CAPTION>

                                                         CDSC AS A % OF
                                                          DOLLAR AMOUNT
                 YEARS SINCE PURCHASE                   SUBJECT TO CHARGE
                 --------------------                   -----------------

<S>                                                            <C>  
                          0-1                                  5.00%
                          1-2                                  4.00%
                          2-3                                  3.00%
                          3-4                                  3.00%
                          4-5                                  2.00%
                          5-6                                  1.00%
                      more than 6                              0.00%
</TABLE>

   
Or if you redeem Class B shares of the Short-Term Municipal Bond Fund prior to
the fourth anniversary of purchase, you will be assessed a CDSC according to the
following schedule:
    

   
<TABLE>
<CAPTION>
                               CDSC as a %
                            Of Dollar Amount
Years Since Purchase        Subject To Charge
- --------------------        -----------------

<S>                             <C>  
0-1                               3.00%
1-2                               3.00%
2-3                               2.00%
3-4                               1.00%
more than 4                       None
</TABLE>
    

   
The One Group Services Company pays a commission of 4.00% of the original
purchase price to Shareholder Servicing Agents who sell Class B shares of all
Funds except, for the Short-Term Municipal Bond Fund. Shareholder Servicing
Agents receive a commission of 2.75% of the price purchase of Class B shares of
the Short-Term Municipal Bond Fund.
    

CLASS C SHARES

Class C shares are offered at NAV, without any up-front sales charge. However,
if you redeem your shares within one year of the purchase date, you will be
assessed a CDSC as follows:

<TABLE>
<CAPTION>
                                                            CDSC AS A % OF
                                                             DOLLAR AMOUNT
                          YEARS SINCE PURCHASE             SUBJECT TO CHARGE
                          --------------------             -----------------

<S>                                                              <C>  
                                 0-1                             1.00%
                            After first year                     None
</TABLE>

Shareholder Servicing Agents selling Class C shares receive a commission of
1.00% of the original purchase price from The One Group Services Company.

How the CDSC is Calculated

- -        The Fund assumes that all purchases made in a given month were made on
         the first day of the month.

- -        The CDSC is based on the current market value or the original cost of
         the shares, whichever is less.


                                       62
<PAGE>   269

- -        A sales charge is not imposed on increases in NAV above the initial
         purchase price, nor is a sales charge assessed on shares acquired
         through reinvestment of dividends or capital gains distributions.

- -        To keep your CDSC as low as possible, the Fund first will redeem any
         shares in your account that carry no CDSC, starting with Class A
         shares. After that, the Fund will redeem the shares you have held for
         the longest time and thus have the lowest CDSC.

12B-1 FEES

   
12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to Shareholder Servicing Agents that sell
shares of One Group.
    

- -        The 12b-1 fees vary by share class as follows:

         1.       Class A shares pay a 12b-1 fee of .35% of the average daily
                  net assets of the Fund, which is currently being waived to
                  .25%.

         2.       Class B and Class C shares pay a 12b-1 fee of 1.00% of the
                  average daily net assets of the Fund, which is currently being
                  waived to .90%. This will cause expenses for Class B and Class
                  C shares to be higher and dividends to be lower than for Class
                  A shares.

         3.       There are no 12b-1 fees for Class I shares.

- -        12b-1 fees, together with the CDSC, help The One Group Services Company
         sell Class B and Class C shares without an "up-front" sales charge by
         defraying the costs of advancing brokerage commissions and other
         expenses paid to Shareholder Servicing Agents.

   
- -        The One Group Services Company may use up to .25% of the fees for
         shareholder servicing and up to .75% for distribution. During the last
         fiscal year, The One Group Services Company received 12b-1 fees
         totaling .25% of the average daily net assets of Class A shares and
         .90% of the average daily net assets of Class B and Class C shares.
    

- -        The One Group Services Company may pay 12b-1 fees to its affiliates and
         to Banc One Investment Advisors and its affiliates (or any sub-advisor)
         for brokerage and other agency transactions.

Sales Charge Reductions and Waivers

REDUCING YOUR CLASS A SALES CHARGES

There are several ways you can reduce the sales charges you pay on Class A
shares:

1.       Right of Accumulation: You may add the market value of any Class A,
         Class B or Class C shares of a Fund (except a money market fund) that
         you (and your spouse and minor children) already own of any One Group
         Fund (except a money market fund) to the amount of your next Class A
         purchase for purposes of calculating the sales charge. An Intermediary
         also may take advantage of this option.

2.       Letter of Intent: With an initial investment of $2,000, you may
         purchase Class A shares of one or more Funds over the next 13 months
         and pay the same sales charge that you would have paid if all shares
         were purchased at once. A percentage of your investment will be held in
         escrow until the full amount covered by the Letter of Intent has been
         invested.


                                       63
<PAGE>   270

To take advantage of the accumulation privilege or letter of intent, complete
the appropriate section of your fund application, or contact your Shareholder
Servicing Agent. To determine if you are eligible for the accumulation
privilege, contact The One Group Services Company at 1-800-480-4111. These
programs may be terminated or amended at any time.

WAIVER OF THE CLASS A SALES CHARGE

No sales charge is imposed on Class A shares of the Funds if the shares were:

1.       Bought with the reinvestment of dividends and capital gains
         distributions.

2.       Acquired in exchange for other Fund shares if a comparable sales charge
         has been paid for the exchanged shares.

3.       Bought by officers, directors or trustees, retirees and employees (and
         their spouses and immediate family members) of:

   
         -        One Group.
    

         -        BANK ONE CORPORATION and its subsidiaries and affiliates.

         -        The One Group Services Company and its subsidiaries and
                  affiliates.


         -        State Street Bank and Trust Company and its subsidiaries and
                  affiliates.

   
         -        Broker/dealers who have entered into dealer agreements with
                  One Group and their subsidiaries and affiliates.

         -        An investment sub-advisor of a One Group Fund and such
                  sub-advisor's subsidiaries and affiliates.
    

4.       Bought by:

         -        Affiliates of BANK ONE CORPORATION and certain accounts (other
                  than IRA Accounts) for which an Intermediary acts in a
                  fiduciary, advisory, agency, custodial or similar capacity.

         -        Accounts as to which a bank or broker-dealer charges an asset
                  allocation fee, provided the bank or broker-dealer has an
                  agreement with The One Group Services Company.

   
         -        Accounts which participate in select affinity programs with
                  BANK ONE CORPORATION and its affiliates and subsidiaries.
    

         -        Retirement and deferred compensation plans and trusts used to
                  fund those plans, including, but not limited to, those defined
                  in Sections 401(a), 403(b) or 457 of the Internal Revenue Code
                  and "rabbi trusts."

         -        Shareholder Servicing Agents who have a dealer arrangement
                  with The One Group Services Company, who place trades for
                  their own accounts or for the accounts of their clients and
                  who charge a management, consulting or other fee for their
                  services, as well as clients of such Shareholder Servicing
                  Agents who place trades their own accounts if the accounts are
                  linked to the master account of such Shareholder Servicing
                  Agent.


                                       65
<PAGE>   271

   
5.       Bought with proceeds from the sale of Class I shares of a One Group
         Fund or acquired in an exchange of Class I shares of a Fund for Class A
         shares of the same Fund, but only if the purchase is made within 60
         days of the sale or distribution.

6.       Bought with proceeds from the sale of shares of a mutual fund,
         including a One Group Fund, for which a sales charge was paid, but only
         if the purchase is made within 60 days of the sale or distribution.

7.       Bought in an IRA with the proceeds of a distribution from an employee
         benefit plan, but only if the purchase is made within 60 days of the
         sale or distribution and, at the time of the distribution, the employee
         benefit plan had plan assets invested in a One Group Fund.

8.       Bought with assets of One Group.
    

9.       Bought in connection with plans of reorganizations of a Fund, such as
         mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

The waivers described in (5), (6) and (7) above will not continue indefinitely
and may be discontinued at any time without notice.

WAIVER OF THE CLASS B SALES CHARGE

No sales charge is imposed on redemptions of Class B shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age 70
         1/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   
6.       Acquired in exchange for Class B shares of other One Group Funds.
    

WAIVER OF THE CLASS C SALES CHARGE

No sales charge is imposed on redemptions of Class C shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

                                       66
<PAGE>   272

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age 70
         1/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   
6.       Acquired in exchange for Class C shares of other One Group Funds.
    

7.       If The One Group Services Company receives notice before you invest
         indicating that your Shareholder Servicing Agent, due to the type of
         account that you have, is waiving its commissions.

To take advantage of any of these sales charge waivers, you must qualify for
such waiver in advance. To see if you qualify, contact The One Group Services
Company at 1-800-480-4111 or your Shareholder Servicing Agent.

EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

You may make the following exchanges:

   
- -        Class I shares of a Fund may be exchanged for Class A shares of that
         Fund or for Class A or Class I shares of another One Group Funds.

- -        Class A shares of a Fund may be exchanged for Class I shares of that
         Fund or for Class A or Class I shares of another One Group Fund but
         only if you are eligible to purchase those shares.

- -        Class B shares of a Fund may be exchanged for Class B shares of another
         One Group Fund.

- -        Class C shares of a Fund may be exchanged for Class C shares of another
         One Group Fund.

One Group Funds offer a Systematic Exchange Privilege which allows you to
automatically exchange shares of one fund to another on a monthly or quarterly
basis. This privilege is useful in Dollar Cost Averaging. To participate in this
privilege, please select it on your account application. To learn more about it,
please call The One Group Services Company at 1-800-480-4111.

One Group does not charge a fee for this privilege. In addition, One Group may
change the terms and conditions of your exchange privileges upon 60 days written
notice.
    

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

- -        State Street Bank and Trust Company receives the request by 4:00 p.m.
         ET.

   
- -        You have provided One Group with all of the information necessary to
         process the exchange.
    

- -        You have received a current prospectus of the Fund or Funds in which
         you wish to invest.

- -        You have contacted your Shareholder Servicing Agent, if necessary.



                                       67
<PAGE>   273

DO I PAY A SALES CHARGE ON AN EXCHANGE?

Generally, you will not pay a sales charge on an exchange. However:

- -        You will pay a sales charge if you own Class I shares of a Fund and you
         want to exchange those shares for Class A shares, unless you qualify
         for a sales charge waiver (see above).

- -        You will pay a sales charge if you bought Class A shares of a Fund:

         1.       That does not charge a sales charge and you want to exchange
                  them for shares of a Fund that does, in which case you would
                  pay the sales charge applicable to the Fund into which you are
                  exchanging.

         2.       That charged a lower sales charge than the Fund into which you
                  are exchanging, in which case you would pay the difference
                  between that Fund's sales charge and all other sales charges
                  you have already paid.

- -        If you exchange Class B or Class C shares of a Fund, you will not pay a
         sales charge at the time of the exchange, however:

         1.       Your new Class B or Class C shares will be subject to the
                  higher CDSC of either the Fund from which you exchanged, the
                  Fund into which you exchanged, or any Fund from which you
                  previously exchanged.

         2.       The current holding period for your exchanged Class B or Class
                  C shares is carried over to your new shares.

ARE EXCHANGES TAXABLE?

Generally:

- -        An exchange between classes of shares of the same Fund is not taxable.

- -        An exchange between Funds is considered a sale and generally results in
         a capital gain or loss for Federal income tax purposes.

- -        You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short-term movements in the market. Therefore:

   
- -        To prevent disruptions in the management of the Funds, One Group limits
         excessive exchange activity.
    

- -        Exchange activity is excessive if it EXCEEDS TWO SUBSTANTIVE EXCHANGE
         REDEMPTIONS (WITHIN 30 DAYS OF EACH OTHER) WITHIN A TWELVE MONTH
         PERIOD.

   
- -        In addition, One Group reserves the right to reject any exchange
         request (even those that are not excessive) if the Fund reasonably
         believes that the exchange will result in excessive transaction costs
         or otherwise adversely affect other shareholders.
    

REDEEMING FUND SHARES


                                       68
<PAGE>   274

WHEN CAN I REDEEM SHARES?

- -        You may redeem all or some of your shares on any day that the Funds are
         open for business.

- -        Redemption requests received by The One Group Services Company before
         4:00 p.m. ET (or when the NYSE closes) will be effective that day.

                                       69
<PAGE>   275

HOW DO I REDEEM SHARES?

- -        Unless you have selected the telephone option on your Account
         Application Form, you must send a written redemption request to your
         Shareholder Servicing Agent, if applicable, or State Street Bank and
         Trust Company at the following address:

   
         One Group
         c/o State Street Bank and Trust Company
         P.O. Box 8528
         Boston, MA 02266-8528
    

- -        All requests for redemptions from IRA accounts must be in writing.

- -        You may request redemption forms by calling The One Group Services
         Company at 1-800-480-4111.

- -        State Street Bank and Trust Company may require that the signature on
         your redemption request be guaranteed by a commercial bank, a member of
         a domestic stock exchange, or a member of the Securities Transfer
         Association Medallion Program or the Stock Exchange Medallion Program,
         unless:

         1.       the redemption is for $50,000 worth of shares or less;

         2.       the redemption is payable to the shareholder of record;

         3.       the redemption check is mailed to the shareholder at the
                  record address; or

         4.       the redemption is payable by wire or bank transfer (ACH) to a
                  pre-existing bank account.

- -        On the Account Application Form you may elect to have the redemption
         proceeds mailed or wired to:

         1.       a designated commercial bank; or

         2.       State Street Bank and Trust Company or your Shareholder
                  Servicing Agent.

- -        State Street Bank and Trust Company may charge you a wire redemption
         fee. The current charge is $7.00.

- -        Your redemption proceeds will be paid within seven days after receipt
         of the redemption request.

WHAT WILL MY SHARES BE WORTH?

- -        If you own Class A and Class I shares and the Fund receives your
         redemption request by 4:00 p.m. ET (or when the NYSE closes), you will
         receive that day's NAV.

- -        If you own Class B or Class C shares and the Fund receives your
         redemption request by 4:00 p.m. ET (or when the NYSE closes), you will
         receive that day's NAV, minus the amount of any applicable CDSC.

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.


                                       69
<PAGE>   276

- -        Call your Shareholder Servicing Agent or State Street Bank and Trust
         Company at 1-800-480-4111 to relay your redemption request.

- -        Your redemption proceeds will be mailed or wired to the commercial bank
         account you designated on your Account Application Form.

- -        State Street Bank and Trust Company may charge you a wire redemption
         fee. The current charge is $7.00.

   
- -        One Group uses reasonable procedures to confirm that instructions given
         by telephone are genuine. These procedures include recording telephone
         instructions and asking for personal identification. If these
         procedures are followed, One Group will not be responsible for any
         loss, liability, cost or expense of acting upon unauthorized or
         fraudulent instructions; you bear the risk of loss.
    

CAN I REDEEM ON A SYSTEMATIC BASIS?

If you have an account value of at least $10,000 you may elect to receive
monthly, quarterly or annual payments of not less than $100 each.

- -        Select the "Systematic Withdrawal Plan" option on the Account
         Application Form.

- -        Specify the amount you wish to receive and the frequency of the
         payments.

- -        You may designate a person other than yourself as the payee.

- -        There is no charge for this service.

- -        If you select this option, please keep in mind that:

         1.       It may not be in your best interest to buy additional Class A
                  shares while participating in a Systematic Withdrawal Plan.
                  This is because Class A shares have an up-front sales charge.

         2.       If you own Class B or Class C shares, you or your designated
                  payee may receive systematic payments provided the payments
                  are limited to no more than 10% of your account value
                  annually, measured from the date the redemption request is
                  received.

         3.       If the amount of the systematic payment exceeds the income
                  earned by your account since the previous payment under the
                  Systematic Withdrawal Plan, payments will be made by redeeming
                  some of your shares. This will reduce the amount of your
                  investment.

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

- -        All redemptions will be for cash.

   
- -        If you redeem shares for which you paid by check, and One Group has not
         yet received payment on the check, One Group will delay forwarding your
         redemption proceeds for 10 or more days until payment has been
         collected from your bank.

- -        Because of the high cost of handling small investments, One Group
         charges a sub-minimum account fee. Accounts under $1,000 that are not
         participating in a Systematic Investment Plan will be assessed an
         annual fee of $10.00. The sub-minimum account fee will not apply to IRA
         accounts and the accounts of employees of BANK ONE CORPORATION and its
         affiliates.
    


                                       71
<PAGE>   277

   
- -        One Group may suspend your ability to redeem when:
    

         1.       Trading on the NYSE is restricted.

         2.       The NYSE is closed (other than weekend and holiday closings).

         3.       The SEC has permitted a suspension.

         4.       An emergency exists.

The Statement of Additional Information offers more details about this process.

- -        You generally will recognize a gain or loss on a redemption for Federal
         income tax purposes. You should talk to your tax advisor before making
         a redemption.


SHAREHOLDER INFORMATION

VOTING RIGHTS

The Funds do not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change a Fund's fundamental investment objective, or approve an
investment advisory contract.

   
As a Fund shareholder, you have one vote for each share that you own. Each Fund,
and each class of shares within each Fund, vote separately on matters relating
solely to that Fund or class, or which affect that Fund or class differently.
However, all shareholders will have equal voting rights on matters that affect
all shareholders equally. BANK ONE CORPORATION (One First National Plaza,
Chicago, Illinois, 60670), through its affiliates, may be deemed for purposes of
the Investment Company Act of 1940 to control the Funds. This is because as of
December 1, 1998, BANK ONE CORPORATION or its affiliates possessed the power to
vote substantially all of the Class I shares of each Fund other than the
Tax-Free Bond Fund, the Short-Term Municipal Bond Fund, and the Michigan
Municipal Bond Fund.
    

On that same date, the following shareholders owned 25% or more of Class A,
Class B or Class C shares of the Funds. As a consequence, they are considered to
be controlling persons of these classes of the Funds.

<TABLE>
<CAPTION>

   
                                                                               PERCENTAGE OF       TYPE OF
NAME AND                                           FUND/CLASS                  OWNERSHIP           OWNERSHIP
ADDRESS
- -------

<S>                                                                            <C>                       
Northern Trust Bank of AZ Ttee                     Arizona Municipal Bond      26.21%              Record
FOR THOMAS A BRAND & REV TRUST                     Fund
PO Box 92956                                       Class A
Chicago, IL 60675-2956
    
</TABLE>


                                       72
<PAGE>   278

<TABLE>

   
<S>                                                <C>                         <C>                 <C>    
                                                   Arizona Municipal Bond      32.02%              Record
Dean Witter For The Benefit Of                     Fund
Charles Stoddard &                                 Class B
P.O. Box 250 -Church Street Station
New York, NY 10008-0250

Strafe & Co                                        Arizona Municipal Bond      99.79%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211
    


Strafe & Co                                        Intermediate Tax-Free Fund  99.46%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211
</TABLE>


                                       73
<PAGE>   279

<TABLE>

<S>                                                <C>                         <C>                 <C>      
Strafe & Co.                                       Ohio Municipal Bond Fund    98.70%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Louisiana Municipal Bond    96.91%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp FBO                       Municipal Income Fund       40.70%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903
                                                                               
Banc One Securities Corp FBO                       Municipal Income Fund       51.03%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903
</TABLE>

                                       74
<PAGE>   280

<TABLE>

<S>                                                <C>                         <C>                 <C>      
Strafe & Co.                                       Municipal Income Fund       99.16%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.
BOIA - One Group Operations                        Kentucky Municipal Bond     93.42%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     West Virginia Municipal     41.41%              Record
Balzout Inc DBA S&E Printing                       Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       West Virginia Municipal     98.77%              Record
BOIA - One Group Operations                        Bond Fund Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211
</TABLE>


DIVIDEND POLICIES

DIVIDENDS

The Funds generally declare dividends daily. Dividends are distributed on the
first business day of each month. Capital gains, if any, for all Funds are
distributed at least annually.


                                       75
<PAGE>   281

The Funds pay dividends and distributions on a per-share basis. This means that
the value of your shares will be reduced by the amount of the payment. If you
purchase shares shortly before the record date for a dividend or the
distribution of capital gains, you will pay the full price for the shares and
receive some portion of the price back as a taxable dividend or distribution.

Dividends payable on Class I shares will be more than those payable on other
classes of shares. This is because Class A, Class B and Class C shares have
higher distribution expenses.

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund and class, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.

SPECIAL DIVIDEND RULES FOR CLASS B SHARES

Class B shares received as dividends and capital gains distributions will be
accounted for separately. Each time any Class B shares (other than those in the
sub-account) convert to Class A shares, a percentage of the Class B shares in
the sub-account will also convert to Class A shares. (See "Conversion Feature.")

TAX TREATMENT OF THE FUNDS

TAX STATUS OF THE FUND

Each Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Funds qualify, as they have in the past, they will
pay no Federal income tax on the earnings they distribute to shareholders.

TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of Fund shares generally will produce either a
taxable gain or a loss. You are responsible for any tax liabilities generated by
your transactions.

FEDERAL TAXATION OF DISTRIBUTIONS

   
EXEMPT-INTEREST DIVIDENDS. If, at the close of each quarter of its taxable year,
at least 50% of the value of a Fund's assets consists of obligations the
interest on which is excludable from gross income, the Fund may pay
"exempt-interest dividends" to you. Generally, exempt-interest dividends are
excludable from gross income. However:
    

1.       If you receive Social Security or Railroad Retirement benefits, you may
         be taxed on a portion of such benefits if you receive exempt-interest
         dividends from the Funds.

2.       Receipt of exempt-interest dividends may result in liability for
         Federal alternative minimum tax and for state and local taxes, both for
         individual and corporate shareholders.

   
INTEREST ON PRIVATE ACTIVITY BONDS: The Municipal Income Fund, the Short-Term
Municipal Bond Fund, the Arizona Municipal Bond Fund, the West Virginia
Municipal Bond Fund, the Kentucky Municipal Bond 
    


                                       75
<PAGE>   282

   
Fund, the Louisiana Municipal Bond Fund, the Ohio Municipal Bond Fund and the
Michigan Municipal Bond Fund may invest as much as 100% of their assets in
municipal securities issued to finance private activities the interest on which
is a tax preference item for purposes of the Federal alternative minimum tax
("Private Activity Bonds"). The Intermediate Tax-Free Bond Fund and the Tax-Free
Bond Fund may invest as much as 20% of its assets in such Private Activity
Bonds. As a result, Fund shareholders who are subject to the Federal alternative
minimum tax may have all or a portion of their income from those Funds subject
to Federal income tax. Additionally, corporate shareholders will be required to
take the interest on municipal securities (including municipal securities of
each Fund's respective state) into account in determining their alternative
minimum taxable income. Persons who are substantial users of facilities financed
by Private Activity Bonds or who are "related persons" of such substantial users
should consult their tax advisors before investing in the Funds.
    

INVESTMENT INCOME AND CAPITAL GAINS DIVIDENDS. Each Fund will distribute
substantially all of its net investment income (including, for this purpose, net
short-term capital gains) on at least an annual basis. Dividends you receive
from a Fund, other than "exempt-interest dividends," will be taxable to you,
whether reinvested or received in cash. Dividends from a Fund's net investment
income, if any, will be taxable as ordinary income and capital gains dividends
will be taxable to you as such, regardless of how long you have held the shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

STATE AND LOCAL TAXATION OF DISTRIBUTIONS:

Dividends that are derived from the Funds' investments in U.S. government
obligations may not be entitled to the exemptions from state and local taxes
that would be available if you purchased U.S. government obligations directly.

The funds will notify you annually of the percentage of income and distributions
derived from U.S. government obligations. Unless otherwise discussed below,
investment income and capital gains dividends may be subject to state and local
taxes.

LOUISIANA TAXES: Distributions from the Louisiana Municipal Bond Fund, which are
derived from interest on tax-exempt obligations of the State of Louisiana or its
political subdivisions and certain obligations of the United States or its
territories, are exempt from Louisiana income tax.

ARIZONA TAXES: Exempt-interest dividends from the Arizona Municipal Bond Fund,
which are derived from interest on tax-exempt obligations of the State of
Arizona and its political subdivisions and certain obligations of the United
States or its territories are exempt from Arizona income tax. Other
distributions from the Fund, including those related to long-term and short-term
capital gains, will be subject to Arizona income tax. Arizona law does not
permit a deduction for interest paid or accrued on indebtedness incurred or
continued to purchase or carry obligations, the interest on which is exempt from
Arizona income tax.

WEST VIRGINIA TAXES: Distributions from the West Virginia Municipal Bond Fund
which are derived from interest or dividends on obligations or securities of a
West Virginia state or local municipal governmental body generally are exempt
from West Virginia income tax. In addition, you will not pay that tax on the
portion of your income from the Fund which represents interest or dividends
received on obligations or securities of the United States and some of its
authorities, commissions or instrumentalities.

   
KENTUCKY TAXES: Dividends received from the Kentucky Municipal Bond Fund which
are derived from interest on Kentucky Municipal Securities are exempt from the
Kentucky individual income tax. Dividends paid from interest earned on
securities that are merely guaranteed by the Federal government, repurchase
agreements collateralized by U.S. government obligations, or from interest
earned on obligations of other states are not exempt from Kentucky individual
income tax. Any distributions of net short-term and net long-term capital gain
earned by the Fund are includable in each shareholder's Kentucky adjusted gross
income as dividend income and long-term capital gain, respectively, and are both
taxed at ordinary income tax rates.
    
                                       77
<PAGE>   283


OHIO TAXES: Dividends received from the Ohio Municipal Bond Fund which are
derived from interest on Ohio Municipal Securities are exempt from the Ohio
personal income tax. In addition, gain from the sale or transfer of certain Ohio
Municipal Securities is also exempt from Ohio income tax. Certain Ohio
municipalities may have retained the right to tax dividends from the Fund.
Corporate investors must include the Fund shares in the corporation's tax base
for purposes of the Ohio franchise tax net worth computation, but not for the
net income computation.

   
MICHIGAN TAXES: Distributions received from the Michigan Municipal Bond Fund are
exempt from Michigan personal income tax and excluded from the taxable income
base of the Michigan intangibles tax to the extent they are derived from
interest on tax-exempt securities, under the current position of the Michigan
Department of Treasury. Such distributions, if received in connection with a
shareholder's business activity, may, however, be subject to Michigan single
business tax. For Michigan personal income tax, intangibles tax and single
business tax purposes, Fund distributions attributable to any source other than
interest on tax-exempt securities will be fully taxable. Fund distributions may
be subject to the uniform city income tax imposed by certain Michigan cities.
    

Information in the preceding paragraphs in based on the current law as well as
current policies of the various state Departments of Taxation, all of which may
change.

TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Funds provide you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Funds or their shareholders.

SHAREHOLDER INQUIRIES

If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.

REPORTING

   
In September and March you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.
    

ORGANIZATION AND MANAGEMENT OF THE FUNDS

THE FUNDS

   
Each Fund is a series of One Group, an open-end management investment company.
One Group currently offers 49 separate Funds. Ten of the Funds are described in
this prospectus; the other Funds are described in separate prospectuses. Four of
the Funds described in this prospectus are diversified, and six of the Funds
described in this prospectus are non-diversified. Each Fund is supervised by the
Board of Trustees.
    

THE BOARD OF TRUSTEES

   
The Trustees oversee the management and administration of the Funds. The
Trustees are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Funds
to the officers of One Group.
    


                                       78
<PAGE>   284


THE ADVISOR

   
Banc One Investment Advisors makes the day-to-day investment decisions for the
Funds and continuously reviews, supervises and administers the Funds' investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets. For the fiscal year ended June
30, 1998, the Funds paid investment advisory fees at the following rates:
    


<TABLE>
<CAPTION>

FUND NAME
                                                                    ANNUAL RATE
                                                                    AS PERCENTAGE
                                                                    OF AVERAGE DAILY
                                                                    NET ASSETS
                                                                    ----------

   
<S>                                                                       <C> 
One Group(R)Intermediate Tax-Free Bond Fund                               .39%
One Group(R)Municipal Income Fund                                         .35%
One Group(R)Short-Term Municipal Bond Fund                                ____%*
One Group(R)Tax-Free Bond Fund                                            ____%*
One Group(R)Arizona Municipal Bond Fund                                   .39%
One Group(R)West Virginia Municipal Bond Fund                             .35%
One Group(R)Louisiana Municipal Bond Fund                                 .37%
One Group(R)Ohio Municipal Bond Fund                                      .31%
One Group(R)Kentucky Municipal Bond Fund                                  .36%
One Group(R)Michigan Municipal Bond Fund                                  ____%*
- ---------                                                                      
    
</TABLE>

   
* The predecessor to these Funds had a December 31 year end. The advisory fees 
shown are as of December 31, 1998.
    

THE DISTRIBUTOR

The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Funds and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.

THE ADMINISTRATOR AND SUB-ADMINISTRATOR

   
The One Group Services Company also serves as the Funds' administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory reporting and
compliance. For these services, The One Group Services Company receives a fee
based on the total assets of One Group. For the first $1.5 billion in One Group
assets, The One Group Services Company receives an annual fee of .20% of each
Fund's average daily net assets. The annual rate declines to .18% on assets up
to $2 billion, and to .16% when assets exceed $2 billion. The fee is calculated
daily and paid monthly. Some Funds are not included in the calculations. Banc
One Investment Advisors, the Sub-Administrator, provides office space,
equipment, and facilities, as well as legal and regulatory support.
    

THE TRANSFER AGENT, CUSTODIAN AND SUB-CUSTODIAN

State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528 or
your Shareholder Servicing Agent, if appropriate, handles shareholder
recordkeeping and statements, distributes dividends, and processes buy and sell
requests. As the Funds' custodian, State Street holds the Funds' assets, settles
all portfolio trades and assists in calculating the Funds' net asset values.
Bank One Trust Company, N.A. serves as sub-custodian in connection with the
Funds' securities lending activities under an agreement with 



                                       79
<PAGE>   285

State Street Bank and Trust Company and Bank One Trust Company, N.A. Bank One
Trust Company, N.A. is paid a fee by the Funds for this service.

YEAR 2000

   
Preparing for the Year 2000 is a high priority for One Group. Both The One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
One Group. Year 2000 remediation efforts are directed toward both information
technology and non-information technology systems. Non-information technology
systems include elevators, photocopy machines, and facsimile machines, and
should have no significant impact on the delivery of services to One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.

Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.

Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipates that the move to Year 2000 will have a material impact on
their ability to continue to provide the Funds with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.
    





                                       80
<PAGE>   286


DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The Funds invest in a variety of securities and employ a number of investment
techniques. Each security and technique involves certain risks. What follows is
a list of the securities and techniques utilized by the Funds, as well as the
risks inherent in their use. Fixed income securities are primarily influenced by
market, credit and prepayment risks, although certain securities may be subject
to additional risks. For a more complete discussion, see the Statement of
Additional Information. Following the table is a more complete discussion of
risk.


FUND NAME                                                     FUND CODE

   
One Group(R)Intermediate Tax-Free Bond Fund                       1
One Group(R)Municipal Income Fund                                 2
One Group(R)Tax-Free Bond Fund                                    3
One Group(R)Short-Term Municipal Bond Fund                        4
One Group(R)Arizona Municipal Bond Fund                           5
One Group(R)West Virginia Municipal Bond Fund                     6
One Group(R)Louisiana Municipal Bond Fund                         7
One Group(R)Ohio Municipal Bond Fund                              8
One Group(R)Kentucky Municipal Bond Fund                          9
One Group(R)Michigan Municipal Bond Fund                         10
    

   
<TABLE>
<CAPTION>

INSTRUMENT                                                                         FUND CODE          RISK TYPE
- ----------                                                                         ---------          ---------


<S>                                                                                 <C>                <S>      
U.S. TREASURY OBLIGATIONS:  Bills, notes, bonds, STRIPS, and CUBES.                 1-10               Market


TREASURY RECEIPTS:  TRs, TIGRS, and CATS.                                           1-10               Market


U.S. GOVERNMENT AGENCY SECURITIES:  Securities issued by agencies and               1-10               Market
instrumentalities of the U.S. Government. These include                                                Credit
Ginnie Mae, Fannie Mae and Freddie Mac.


CERTIFICATES OF DEPOSIT:  Negotiable instruments with a stated maturity.            1-10               Market
                                                                                                       Credit
                                                                                                      Liquidity
TIME DEPOSITS:  Non-negotiable receipts issued by a bank in exchange
for the deposit of funds.                                                           1-10              Liquidity
                                                                                                       Credit
                                                                                                       Market


REPURCHASE AGREEMENTS:  The purchase of a security and the simultaneous             1-10               Credit
commitment to return the security to the seller at an agreed upon price on                             Market
an agreed upon date. This is treated as a loan.                                                       Liquidity


REVERSE REPURCHASE AGREEMENT:  The sale of a security and the simultaneous          1-10               Market
commitment to buy the security back at an agreed upon price on an agreed upon                         Leverage
date. This is treated as a borrowing by a Fund.


SECURITIES LENDING:  The lending of up to 331/3% of a Fund's total assets.          1-10               Credit
In return the Fund will receive cash, other securities, and/or letters of                              Market
credit as collateral.                                                                                 Leverage
    
</TABLE>





                                       81
<PAGE>   287


<TABLE>
<CAPTION>
   
INSTRUMENT                                                                        FUND CODE          RISK TYPE
- ----------                                                                        ---------          ---------


<S>                                                                                 <C>             <C>         
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS:  Purchase or contract to            1-10               Market
purchase securities at a fixed price for delivery at a future date.                                   Leverage
                                                                                                     Liquidity
                                                                                                       Credit

INVESTMENT COMPANY SECURITIES: Shares of other mutual funds, including One Group    1-10               Market
money market funds and shares of other investment companies for which
Banc One Investment Advisors serves as investment advisor or administrator. Banc
One Investment Advisors will waive certain fees when investing in funds for
which it serves as investment advisor.


CALL AND PUT OPTIONS:  A call option gives the buyer the right to buy, and          1-10             Management
obligates the seller of the option to sell, a security at a specified price. A                        Liquidity
put option gives the buyer the right to sell, and obligates the seller of the                          Credit
option to buy, a security at a specified price. The Funds will sell only                               Market
covered call and secured put options.                                                                 Leverage


FUTURES AND RELATED OPTIONS:  A contract providing for the future sale and          1-10             Management
purchase of a specified amount of a specified security, class of                                       Market
securities, or an index at a specified time in the future and at a                                     Credit
specified price.                                                                                      Liquidity
                                                                                                      Leverage


BANKERS' ACCEPTANCES:  Bills of exchange or time drafts drawn on and                1-10               Credit
accepted by a commercial bank. Maturities are generally six months or less.                           Liquidity
                                                                                                       Market


COMMERCIAL PAPER:  Secured and unsecured short-term promissory notes                1-10               Credit
issued by corporations and other entities. Maturities generally vary from a                           Liquidity
few days to nine months.                                                                               Market


RESTRICTED SECURITIES:  Securities not registered under the Securities Act of       1-10              Liquidity
1933, such as privately placed commercial paper and Rule 144A securities.                              Market
                                                                                                       Credit


VARIABLE AND FLOATING RATE INSTRUMENTS:  Obligations with interest rates            1-10               Market
which are reset daily, weekly, quarterly or some other period and which                                Credit
may be payable to the Fund on demand.                                                                 Liquidity


MORTGAGE-BACKED SECURITIES:  Debt obligations secured by real estate loans          1-10             Pre-payment
and pools of loans. These include collateralized mortgage obligations                                  Market
("CMOs"), and Real Estate Mortgage Investment Conduits ("REMICs").                                     Credit
                                                                                                     Regulatory


DEMAND FEATURES:  Securities that are subject to puts and standby                   1-10               Market
commitments to purchase the securities at a fixed price (usually with accrued                         Liquidity
interest) within a fixed period of time following demand by a Fund.                                  Management


MORTGAGE DOLLAR ROLLS:  A transaction in which a Fund sells securities for          1-10             Pre-payment
delivery in a current month and simultaneously contracts with the same party                           Market
to repurchase similar but not identical securities on a specified future date.                       Regulatory


SWAPS, CAPS AND FLOORS:  A Fund may enter into these transactions to                1-10             Management
manage its exposure to changing interest rates and other factors. Swaps                                Credit
involve an exchange of obligations by two parties. Caps and floors entitle                            Liquidity
a purchaser to a principal amount from the seller of the cap or floor to the                           Market
extent that a specified index exceeds or falls below a predetermined interest.



INSTRUMENT                                                                        FUND CODE          RISK TYPE
- ----------                                                                        ---------          ---------
    
</TABLE>



                                       82
<PAGE>   288

<TABLE>

<S>                                                                                 <C>              <C>          
NEW FINANCIAL PRODUCTS:  New options and futures contracts and other financial      1-10             Management
products continue to be developed and the Fund may invest in such options,                             Credit
contracts and products.                                                                                Market
                                                                                                      Liquidity

   
STRUCTURED INSTRUMENTS:  Debt securities issued by agencies and                     1-10               Market
    
instrumentalities of the U.S. government, banks, municipalities, corporations                         Liquidity
and other businesses whose interest and/or principal payments are indexed to                         Management
foreign currency exchange rates, interest rates, or one or more other                                  Credit
referenced indices.                                                                              Foreign Investment

   
MUNICIPAL SECURITIES:  Securities issued by a state or political subdivision        1-10               Credit
to obtain funds for various public purposes. Municipal securities include                             Political
private activity bonds and industrial development bonds, as well as General                              Tax
Obligation Notes, Anticipation Notes, Bond Tax Anticipation Notes, Revenue                             Market
Anticipation Notes, Project Notes, other short-term tax-exempt obligations,                          Regulatory
municipal leases, participations in pools of municipal securities, and
obligations of municipal housing authorities and single family revenue bonds.


STRIPPED MORTGAGE-BACKED SECURITIES:  Derivative multi-class mortgage securities    1-10             Pre-payment
 usually structured with two classes of shares that receive different                                  Market
proportions of the interest and principal from a pool of mortgage backed obligations .                 Credit
These include IOs and POs.                                                                           Regulatory


ASSET-BACKED SECURITIES:  Securities secured by company receivables, home           1-10             Pre-payment
equity loans, truck and auto loans, leases, credit card receivables and                                Market
other securities backed by other types of receivables or other assets.                                 Credit
                                                                                                     Regulatory


ZERO-COUPON DEBT SECURITIES:  Bonds and other debt that pay no interest,            1-10               Credit
but are issued at a discount from their value at maturity. When held to                                Market
    
maturity, their entire return equals the differences between their issue price
and their maturity value.


   
INVERSE FLOATING RATE INSTRUMENTS:  Leveraged variable rate debt instruments        1-10               Credit
with interest rates that reset in the opposite direction from the market rate                          Market
of interest to which the inverse floater is indexed.                                                  Leverage


LOAN PARTICIPATIONS AND ASSIGNMENTS:  Participations in, or assignments             1-10               Market
of municipal securities, including municipal leases.                                                   Credit
                                                                                                      Political
                                                                                                      Liquidity
                                                                                                         Tax
    
</TABLE>





                                       83
<PAGE>   289


INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities held by the Funds may fluctuate, as will the value of
your investment in the Funds. Certain investments are more susceptible to these
risks than others.

   
- -        CREDIT RISK. The risk that the issuer of a security, or the
         counterparty to a contract, will default or otherwise be unable to
         honor a financial obligation. Credit risk is generally higher for
         non-investment grade securities. The price and liquidity of a security
         can be adversely affected prior to actual default as its credit status
         deteriorates and the probability of default rises.
    

- -        LEVERAGE RISK. The risk associated with securities or practices that
         multiply small index or market movements into large changes in value.
         Leverage is often associated with investments in derivatives, but also
         may be embedded directly in the characteristics of other securities.

- -        HEDGED. When a derivative (a security whose value is based on another
         security or index) is used as a hedge against an opposite position that
         the fund also holds, any loss generated by the derivative should be
         substantially offset by gains on the hedged investment, and vice versa.
         While hedging can reduce or eliminate losses, it can also reduce or
         eliminate gains. Hedges are sometimes subject to imperfect matching
         between the derivative and underlying security, and there can be no
         assurance that a Fund's hedging transactions will be effective.

- -        SPECULATIVE. To the extent that a derivative is not used as a hedge,
         the fund is directly exposed to the risks of that derivative. Gains or
         losses from speculative positions in a derivative may be substantially
         greater than the derivative's original cost.

- -        LIQUIDITY RISK. The risk that certain securities may be difficult or
         impossible to sell at the time and the price that normally prevails in
         the market. The seller may have to lower the price, sell other
         securities instead or forego an investment opportunity, any of which
         could have a negative effect on fund management or performance. This
         includes the risk of missing out on an investment opportunity because
         the assets necessary to take advantage of it are tied up in less
         advantageous investments.

- -        MANAGEMENT RISK. The risk that a strategy used by a fund's management
         may fail to produce the intended result. This includes the risk that
         changes in the value of a hedging instrument will not match those of
         the asset being hedged. Incomplete matching can result in unanticipated
         risks.

- -        MARKET RISK. The risk that the market value of a security may move up
         and down, sometimes rapidly and unpredictably. These fluctuations may
         cause a security to be worth less than the price originally paid for
         it, or less than it was worth at an earlier time. Market risk may
         affect a single issuer, industry, sector of the economy or the market
         as a whole. There is also the risk that the current interest rate may
         not accurately reflect existing market rates. For fixed income
         securities, market risk is largely, but not exclusively, influenced by
         changes in interest rates. A rise in interest rates typically causes a
         fall in values, while a fall in rates typically causes a rise in
         values. Finally, key information about a security or market may be
         inaccurate or unavailable. This is particularly relevant to investments
         in foreign securities.

- -        POLITICAL RISK. The risk of losses attributable to unfavorable
         governmental or political actions, seizure of foreign deposits, changes
         in tax or trade statutes, and governmental collapse and war.

- -        FOREIGN INVESTMENT RISK. Risk associated with higher transaction costs,
         delayed settlements, currency controls and adverse economic
         developments. This also includes the risk that fluctuations in the
         exchange rates between the U.S. dollar and foreign currencies may
         negatively affect an investment. Adverse changes in exchange rates may
         erode or reverse any gains produced by 


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         foreign currency denominated investments and may widen any losses.
         Exchange rate volatility also may affect the ability of an issuer to
         repay U.S. dollar denominated debt, thereby increasing credit risk.

- -        PRE-PAYMENT RISK. The risk that the principal repayment of a security
         will occur at an unexpected time, especially that the repayment of a
         mortgage or asset-backed security occurs either significantly sooner or
         later than expected. Changes in pre-payment rates can result in greater
         price and yield volatility. Pre-payments generally accelerate when
         interest rates decline.

         When mortgage and other obligations are pre-paid, a Fund may have to
         reinvest in securities with a lower yield. Further, with early
         prepayment, a Fund may fail to recover any premium paid, resulting in
         an unexpected capital loss.

- -        TAX RISK. The risk that the issuer of the securities will fail to
         comply with certain requirements of the Internal Revenue Code, which
         would cause adverse tax consequences.

- -        REGULATORY RISK. The risk associated with Federal and state laws which
         may restrict the remedies that a lender has when a borrower defaults on
         loans. These laws include restrictions on foreclosures, redemption
         rights after foreclosure, Federal and state bankruptcy and debtor
         relief laws, restrictions on "due on sale" clauses, and state usury
         laws.

INVESTMENT POLICIES

Each Fund's investment objective and the investment policies summarized below
are fundamental. This means that they cannot be changed without the consent of a
majority of the outstanding shares of the Funds. In addition to the fundamental
policies mentioned earlier, the following fundamental policies apply to each
Fund as specified. The full text of the fundamental policies can be found in the
Statement of Additional Information.

INVESTMENT POLICIES FOR SPECIFIC FUNDS

   
The Intermediate Tax-Free Bond Fund, the Municipal Income Fund, the Tax-Free
Bond Fund, and the Short-Term Municipal Bond Fund may not:
    

1.       Purchase the securities of an issuer if as a result more than 5% of its
         total assets would be invested in the securities of that issuer, or the
         Fund would own more than 10% of the outstanding voting securities of
         that issuer. This does not include securities issued or guaranteed by
         the United States, its agencies or instrumentalities, and repurchase
         agreements involving these securities. This restriction applies to 75%
         of a Fund's total assets.

2.       Concentrate in a particular industry or group of industries. This does
         not include Municipal Securities or governmental guarantees of
         Municipal Securities, and with respect to the Municipal Income Fund,
         housing authority obligations. Private activity bonds that are backed
         only by the assets and revenues of a non-governmental issuer are not
         Municipal Securities for purposes of this restriction.

   
The Arizona Municipal Bond Fund, the West Virginia Municipal Bond Fund, the
Louisiana Municipal Bond Fund, the Ohio Municipal Bond Fund, the Kentucky
Municipal Bond Fund and the Michigan Municipal Bond Fund may not:
    

1.       Purchase the securities of an issuer if as a result more than 25% of
         its total assets would be invested in the securities of that issuer.
         This restriction applies with respect to 50% of a Fund's total assets.
         With respect to the remaining 50% of its total assets, a Fund may not
         purchase the securities of an issuer if as a result more than 5% of its
         total assets would be invested in the securities of that issuer. This
         restriction does not apply to securities issued or guaranteed by the


                                       85
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         United States, its agencies, or instrumentalities, securities of
         regulated investment companies, and repurchase agreement involving such
         securities.

2.       Concentrate their investment in the securities of one or more issuers
         conducting their principal business in a particular industry or group
         of industries. This does not include:

- -        Obligations issued or guaranteed by the U.S. government or its agencies
         and instrumentalities and repurchase agreements involving such
         securities;

- -        Municipal Securities; and

   
- -        Ohio Municipal Securities, Kentucky Municipal Securities, Arizona
         Municipal Securities, West Virginia Municipal Securities, Louisiana
         Municipal Securities, and Michigan Municipal Securities or governmental
         guarantees of such securities. With respect to the Arizona Municipal
         Bond Fund and the West Virginia Municipal Bond Fund, private activity
         bonds that are backed only by the assets and revenues of a
         non-governmental issuer are not Arizona Municipal Securities or West
         Virginia Municipal Securities for purposes of this restriction.
    

INVESTMENT POLICIES FOR ALL FUNDS

None of the Funds may make loans, except that a Fund may (i) purchase or hold
debt instruments in accordance with its investment objective and policies; (ii)
enter into repurchase agreements; and (iii) engage in securities lending.

Additional investment policies are set forth in the Statement of Additional
Information.

TEMPORARY DEFENSIVE POSITION

For temporary defensive purposes, each Fund may invest up to 100% of its assets
in money market instruments and may hold a portion of its assets in cash for
liquidity purposes.

   
The Arizona Municipal Bond Fund, the West Virginia Municipal Bond Fund, the
Louisiana Municipal Bond Fund, the Ohio Municipal Bond Fund and the Michigan
Municipal Bond Fund also may invest up to 20% of their total assets in
securities other than Arizona, West Virginia, Louisiana, Ohio and Michigan
Municipal Securities, respectively. The Kentucky Municipal Bond Fund may invest
up to 35% of its total assets in securities other than Kentucky Municipal
Securities.
    

While the Funds are engaged in a temporary defensive position, they will not be
pursuing their investment objectives. Therefore, the Funds will pursue a
temporary defensive position only when market conditions warrant.

PORTFOLIO TURNOVER

Portfolio turnover may vary greatly from year to year, as well as within a
particular year.

Higher portfolio turnover rates will likely result in higher transaction costs
to the Funds and may result in additional tax consequences to you. The portfolio
turnover rate for each Fund for the fiscal year ended June 30, 1998 is shown on
the Financial Highlights. To the extent portfolio turnover results in short-term
capital gains, such gains will generally be taxed at ordinary income tax rates.


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APPENDIX

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors determines that such securities are the equivalent
of investment grade securities. Securities that have received different ratings
from more than one agency are considered investment grade if at least one agency
has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

         D-1+     Highest certainty of timely payment. Short-term liquidity,
                  including internal operating factors and/or access to
                  alternative sources of funds, is outstanding and safety is
                  just below risk-free U.S. Treasury obligations.

         D-1      Very high certainty of timely payment. Liquidity factors are
                  excellent and supported by good fundamental protection
                  factors. Risk factors are minor.

         D-1-     High certainty of timely payment. Liquidity factors are strong
                  and supported by good fundamental protection factors. Risk
                  factors are very small.

STANDARD & POOR'S CORPORATION ("S&P")

         A-1      Highest category of commercial paper. Capacity to meet
                  financial commitment is strong. Obligations designated with a
                  plus sign (+) indicate that capacity to meet financial
                  commitment is extremely strong.

         A-2      Issues somewhat more susceptible to adverse effects of changes
                  in circumstances and economic conditions than obligations in
                  higher rating categories. However, the capacity to meet
                  financial commitments is satisfactory.

FITCH IBCA, INC. ("FITCH")

         F1       Highest capacity for timely repayment. Those issues rated F1+
                  possess a particularly strong credit feature.

         F2       Satisfactory capacity for timely repayment although such
                  capacity may be susceptible to adverse changes in business,
                  economic or financial conditions.




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MOODY'S INVESTORS SERVICE ("MOODY'S")

         PRIME-1           Superior ability for repayment.

         PRIME-2           Strong ability for repayment.

DESCRIPTION OF BANK RATINGS

MOODY'S

These ratings represent Moody's opinion of a bank's intrinsic safety and
soundness.

         A        These banks possess exceptional intrinsic financial strength.
                  Typically they will be major financial institutions with
                  highly valuable and defensible business franchises, strong
                  financial fundamentals, and a very attractive and stable
                  operating environment.

         B        These banks possess strong intrinsic financial strength.
                  Typically, they will be important institutions with valuable
                  and defensible business franchises, good financial
                  fundamentals, and an attractive and stable operating
                  environment.

         C        These banks possess good intrinsic financial strength.
                  Typically, they will be institutions with valuable and
                  defensible business franchises. These banks will demonstrate
                  either acceptable financial fundamentals within a stable
                  operating environment, or better than average financial
                  fundamentals within an unstable operating environment.

S&P

S&P's credit rating is a current opinion of an obligor's overall financial
capacity (its creditworthiness) to pay its financial obligation.

         AAA      The highest rating assigned by S&P. The obligor's capacity to
                  meet its financial commitment on the obligation is extremely
                  strong.

         AA       The obligor's capacity to meet its financial commitments on
                  the obligation is very strong.

         A        The obligation is somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than obligations in higher rated categories. However, the
                  obligor's capacity to meet its financial commitment on the
                  obligation is still strong.

DESCRIPTION OF INSURANCE RATINGS

MOODY'S

These ratings represent Moody's opinions of the ability of insurance companies
to pay punctually senior policyholder claims and obligations.
   

         Aaa      Insurance companies rated in this category offer exceptional
                  financial security. While the financial strength of these
                  companies is likely to change, such changes as can be
                  visualized are most unlikely to impair their fundamentally
                  strong position.
    
   

         Aa       These insurance companies offer excellent financial security.
                  Together with the Aaa group, they constitute what are
                  generally known as high grade companies. They are rated lower
                  than Aaa companies because long-term risks appear somewhat
                  larger.
    


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<PAGE>   294

         A        Insurance companies rated in this category offer good
                  financial security. However, elements may be present which
                  suggest a susceptibility to impairment sometime in the future.

S&P

S&P's credit rating is a current opinion of the creditworthiness of an obligor
with respect to a specific financial obligation, a specific class of financial
obligations, or a specific financial program.

         AAA      This is the highest rating assigned by S&P. The obligor's
                  capacity to meet its financial commitment on the obligation is
                  extremely strong.

         AA       The obligor's capacity to meet its financial commitments on
                  the obligation is very strong.

         A        An obligation rated A is somewhat more susceptible to the
                  adverse effects of changes in circumstances and economic
                  conditions than obligations in higher rated categories.
                  However, the obligor's capacity to meet its financial
                  commitment on the obligation is still strong.

DESCRIPTION OF MUNICIPAL BOND RATINGS
(including mortgage and asset-backed securities)

S&P

Investment Grade

         AAA      The highest rating. The rating indicates an extremely strong
                  capacity to meet its financial commitment.

         AA       Differs from AAA issues only in a small degree. The obligor's
                  capacity to meet its financial commitment is very strong.

         A        These bonds are somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than debt in higher rated categories. However, capacity to
                  meet its financial commitment on the obligations is still
                  strong.

         BBB      Exhibits adequate protection parameters. However, adverse
                  economic conditions or changing circumstances are more likely
                  to lead to a weakened capacity to meet its financial
                  commitment on the obligations.

   
Non-Investment Grade
    

         BB       Less vulnerable to non-payment than other speculative issues.
                  However, these bonds face major ongoing uncertainties or
                  exposure to adverse business, financial or economic conditions
                  which could lead to inadequate capacity to meet financial
                  commitment on the obligation.

         B        More vulnerable to non-payment than obligations rated BB, but
                  currently has the capacity to meet its financial commitment on
                  the obligation. Adverse business, financial or economic
                  conditions will likely impair capacity or willingness to meet
                  its financial commitment on the obligation.

   
         CCC      Currently vulnerable to non-payment, and is dependent upon
                  favorable business, financial, and economic conditions to meet
                  its financial commitment on the obligation. In 

    
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<PAGE>   295

   
                  the event of adverse business, financial, or economic
                  conditions, they are not likely to have the capacity to meet
                  their financial commitment on the obligation.
    

         CC       Currently highly vulnerable to non-payment.

         C        This rating may be used to cover a situation where a
                  bankruptcy petition has been filed, or similar action has been
                  taken, but payments on this obligation are being continued.
   

         D        Bonds in payment default.
    

Ratings from AA to CCC may be modified by a plus (+) or minus (-) to show
relative standing within the major rating categories.



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<PAGE>   296



MOODY'S

Investment Grade
   

         Aaa      Best quality. They carry the smallest degree of investment
                  risk and are generally referred to as "gilt edged." Interest
                  payments are protected by a large, or an exceptionally stable,
                  margin and principal is secure.
    
   

         Aa       High quality by all standards. Margins of protection may not
                  be as large as in Aaa securities, fluctuation of protective
                  elements may be greater, or there may be other elements
                  present that make the long-term risks appear somewhat larger
                  than in Aaa securities.
    

         A        These bonds possess many favorable investment attributes and
                  are to be considered as upper-medium grade obligations.
                  Factors giving security to principal and interest are
                  considered adequate, but elements may be present which suggest
                  a susceptibility to impairment sometime in the future.
   

         Baa      These bonds are considered medium-grade obligations (i.e.,
                  they are neither highly protected nor poorly secured).
                  Interest payments and principal security appear adequate for
                  the present but certain protective elements may be lacking or
                  may be characteristically unreliable over any great length of
                  time. Such bonds lack outstanding investment characteristics
                  and in fact have speculative characteristics as well.
    

Non-Investment Grade
   

         Ba       These bonds have speculative elements; their future cannot be
                  considered as well assured. The protection of interest and
                  principal payments may be very moderate and thereby not well
                  safeguarded during good and bad times over the future.
    

         B        These bonds lack the characteristics of a desirable investment
                  (i.e., potentially low assurance of timely interest and
                  principal payments or maintenance of other contract terms over
                  any long period of time may be small).
   

         Caa      Bonds in this category have poor standing and may be in
                  default. These bonds carry an element of danger with respect
                  to principal and interest payments.
    
   

         Ca       Speculative to a high degree and could be in default or have
                  other marked shortcomings. Ca is the lowest rating.
    

DESCRIPTION OF MUNICIPAL NOTE RATINGS

MOODY'S

MIG1 & VMIG1

Short-term municipal securities rated MIG1 or VMIG1 are of the best quality.
They have strong protection from established cash flows, superior liquidity
support or demonstrated broad-based access to the market for refinancing.



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MIG2 & VMIG2

These Short-term municipal securities rated MIG2 or VMIG2 are of high quality.
Margins of protection are ample although not so large as in the preceding group.

MIG3 & VMIG3

Favorable quality. All security elements are accounted for, but the undeniable
strength of the preceding grades is lacking. Liquidity and cash flow protection
may be narrow and marketing access for refinancing is likely to be less well
established.

S&P

An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in three years or less will likely receive a note
rating. Notes maturing beyond three years will most likely receive a long-term
debt rating.

         SP-1     Strong capacity to pay principal and interest. Those issues
                  determined to possess overwhelming safety characteristics will
                  be given a plus (+) designation.

         SP-2     Satisfactory capacity to pay principal and interest.

         SP-3     Speculative capacity to pay principal and interest.

DESCRIPTION OF PREFERRED STOCK RATINGS

MOODY'S

         aaa      Top-quality preferred stock. This rating indicates good asset
                  protection and the least risk of dividend impairment within
                  the universe of preferred stocks.

         aa       High-grade preferred stock. This rating indicates that there
                  is a reasonable assurance the earnings and asset protection
                  will remain relatively well maintained in the foreseeable
                  future.

         a        Upper-medium grade preferred stock. While risks are judged to
                  be somewhat greater than in the "aaa" and "aa" classification,
                  earnings and asset protection are, nevertheless, expected to
                  be maintained at adequate levels.

         baa      Medium-grade preferred stock, neither highly protected nor
                  poorly secured. Earnings and asset protection appear adequate
                  at present but may be questionable over any great length of
                  time.

S&P

S&P's preferred stock rating is an assessment of the capacity and willingness of
an issuer to pay preferred stock dividends and any applicable sinking fund
obligations.

         AAA      Highest rating. This rating indicates an extremely strong
                  capacity to pay the preferred stock obligations.

         AA       High-quality, fixed-income security. The capacity to pay
                  preferred stock obligations is very strong, although not as
                  overwhelming as for issues rated "AAA."


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<PAGE>   298

         A        Backed by a sound capacity to pay the preferred stock
                  obligations, although it is somewhat more susceptible to the
                  adverse effects of changes in circumstances and economic
                  conditions.

         BBB      Backed by an adequate capacity to pay the preferred stock
                  obligations. Whereas the issuer normally exhibits adequate
                  protection parameters, adverse economic conditions or changing
                  circumstances are more likely to lead to a weakened capacity
                  to make payments for a preferred stock in this category than
                  for issues in the "A" category.

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") assigns ratings to specific debt instruments
with original maturities of one year or less. The TBW Short-Term ratings
specifically assess the likelihood of an untimely payment of principal and
interest.

         TBW-1    Very high degree of likelihood that principal and interest
                  will be paid on a timely basis.

         TBW-2    While degree of safety regarding timely repayment of principal
                  and interest is strong, the relative degree is not as high as
                  for issues rated TBW-1.

         TBW-3    Lowest investment grade category. While more susceptible to
                  adverse developments than obligations with higher ratings,
                  capacity to service principal and interest in a timely fashion
                  is considered adequate.

         TBW-4    Non-investment grade and, therefore, speculative.



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Investment Advisor and Sub-Administrator
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Distributor
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Administrator
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Transfer Agent and Custodian
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

Legal Counsel
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

   
Independent Accountants
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
    

   
THE STATEMENT OF ADDITIONAL INFORMATION CONTAINS MORE DETAILED INFORMATION ABOUT
THE FUNDS. THE CURRENT STATEMENT OF ADDITIONAL INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY
CALLING 1-800-480-4111 OR BY WRITING TO THE ONE GROUP SERVICES COMPANY AT 3435
STELZER ROAD, COLUMBUS, OHIO 43219. THE STATEMENT OF ADDITIONAL INFORMATION IS
INCORPORATED INTO THIS PROSPECTUS BY REFERENCE. THE SEC MAINTAINS A WEB SITE
(WWW.SEC.GOV) THAT CONTAINS THE STATEMENT OF ADDITIONAL INFORMATION, MATERIALS
INCORPORATED BY REFERENCE AND OTHER INFORMATION REGARDING ONE GROUP(R).
    





                                       94
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                            ONE GROUP(R) MUTUAL FUNDS
    

                               MONEY MARKET FUNDS

                               COMBINED PROSPECTUS

   
                                 MARCH __, 1999


                      ONE GROUP(R) PRIME MONEY MARKET FUND

                    ONE GROUP(R) MUNICIPAL MONEY MARKET FUND

                  ONE GROUP(R) OHIO MUNICIPAL MONEY MARKET FUND

             ONE GROUP(R) U.S. TREASURY SECURITIES MONEY MARKET FUND

                ONE GROUP(R) MICHIGAN MUNICIPAL MONEY MARKET FUND

   This prospectus describes five money market mutual funds with a variety of
  investment objectives, including current income, interest income exempt from
Federal Income Tax, and interest income exempt from Federal Income Tax and Ohio
    and Michigan Personal Income Tax. The information in this prospectus is
 important. Please read it carefully before you invest, and save it for future
                                   reference.
    

PLEASE REMEMBER THAT SHARES OF THE FUNDS: - ARE NOT DEPOSITS OR OBLIGATIONS OF,
 OR GUARANTEED BY BANK ONE CORPORATION OR ITS AFFILIATES; - ARE NOT INSURED OR
  GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY FEDERAL OR
  STATE GOVERNMENTAL AGENCY; - INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE
                     LOSS OF THE PRINCIPAL AMOUNT INVESTED.

   
  ONE GROUP OHIO MUNICIPAL MONEY MARKET FUND AND ONE GROUP MICHIGAN MUNICIPAL
   MONEY MARKET FUND MAY INVEST A SIGNIFICANT PORTION OF THEIR ASSETS IN THE
   SECURITIES OF A SINGLE ISSUER. AS A RESULT, AN INVESTMENT IN THE FUNDS MAY
   ENTAIL MORE RISKS THAN AN INVESTMENT IN ANOTHER TYPE OF MONEY MARKET FUND.

THERE IS NO ASSURANCE THAT THE FUNDS WILL MEET THEIR INVESTMENT OBJECTIVES OR BE
  ABLE TO MAINTAIN A NET ASSET VALUE OF $1.00 PER SHARE ON A CONTINUOUS BASIS.
    

  THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
 OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.




                                       1
<PAGE>   301
                    TABLE OF CONTENTS
   
<TABLE>
<S>                                                         <C>  
A BRIEF PREVIEW OF THE FUNDS                                 1   
ABOUT THE FUNDS                                              2
  One Group(R)Prime Money Market Fund                        3   
  One Group(R)Municipal Money Market Fund                    9   
  One Group(R)Ohio Municipal Money Market Fund              13   
  One Group(R)U.S. Treasury Securities Money Market Fund    17   
  One Group(R) Michigan Municipal Money Market Fund         21   
MORE ABOUT THE FUNDS                                        24   
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS          26   
  Purchasing Fund Shares                                    26   
  Sales Charges                                             30   
  Sales Charge Reductions and Waivers                       31   
  Exchanging Fund Shares                                    32   
  Redeeming Fund Shares                                     34   
SHAREHOLDER INFORMATION                                     37   
  Voting Rights                                             37   
  Dividend Policies                                         38   
  Tax Treatment of the Funds                                40   
  Tax Treatment of Shareholders                             40   
  Shareholder Inquiries                                     41   
ORGANIZATION AND MANAGEMENT OF THE FUNDS                    42   
  The Funds                                                 42   
  The Board of Trustees                                     42   
  The Advisor                                               42   
  The Distributor                                           42   
  The Administrator and Sub-Administrator                   42   
  The Transfer Agent, Custodian and Sub-Custodian           42   
  Year 2000                                                 43 
DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES  44   
  Investment Practices                                      44   
  Investment Risks                                          46   
  Investment Policies                                       47   
APPENDIX: DESCRIPTION OF RATINGS                            49   
</TABLE>
    



                     2
<PAGE>   302

                          A BRIEF PREVIEW OF THE FUNDS

WHAT ARE THE GOALS OF THE ONE GROUP MONEY MARKET FUNDS?

   
The Funds are designed for a variety of investment objectives, including current
income, interest income exempt from Federal Income Tax, and interest income
exempt from Federal Income Tax and Ohio and Michigan Personal Income Tax. Each
Fund pursues a different objective and involves different risks. All of the
Funds will use their best efforts to maintain a constant net asset value of
$1.00 per share, although there is no guarantee that the Funds will be able to
do so. Please read about each Fund before investing.
    

WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?

The Funds will invest only in U.S. dollar-denominated securities, will maintain
an average maturity on a dollar-weighted basis of 90 days or less, and will
acquire only "eligible securities" that present minimal credit risks and have a
maturity of 397 days or less. The Funds intend to comply with Rule 2a-7 under
the Investment Company Act of 1940.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?

   
The Funds invest in securities that are backed by "credit enhancements" such as
letters of credit. The value of investments in the Funds could decrease if the
credit quality of the credit enhancement provider declines. The Prime Money
Market Fund invests in mortgage-related securities which have significantly
greater price and yield volatility than traditional fixed income securities. In
addition, the Prime Money Market Fund invests in U.S. dollar denominated foreign
securities which may expose the Fund to risks that are different from
investments in U.S. Securities. The Ohio Municipal Money Market Fund and the
Michigan Municipal Money Market Fund are non-diversified funds which expose
investors to special risks. An investment in the Funds is not a deposit of BANK
ONE CORPORATION or its affiliates and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. For more
information about risks, please read "More About the Funds" and "Investment
Risks."
    

WHAT CLASSES OF SHARES ARE AVAILABLE?

   
Each Fund currently offers Class A, Class C, Class I and Service Class shares.
Class A and Class C shares are offered to the general public. Class I shares are
offered to institutional investors, including affiliates of BANK ONE CORPORATION
and any bank, depository institution, insurance company, pension plan or other
organization authorized to act in fiduciary, advisory, agency, custodial or
similar capacities. Class I shares are not available to Individual Retirement
Accounts ("IRA"). Service Class shares are offered to entities purchasing such
shares on behalf of investors requiring additional administrative or accounting
services such as sweep processing.

The Prime Money Market Fund and the U.S. Treasury Securities Money Market Fund
also offer Class B shares. Class B shares are offered to the general public. The
section called "How To Do Business With the One Group Mutual Funds" will provide
more information.
    

HOW DO I PURCHASE AND REDEEM SHARES?

   
You may buy and redeem shares of the Funds on any day that the Funds are open
for business. Class C Shares are not available for purchase in all of the Funds.
Purchase and redemption procedures are explained in greater detail in "How To Do
Business With the One Group Mutual Funds." For additional information, call The
One Group Services Company at 1-800-480-4111.
    






                                       1
<PAGE>   303

HOW ARE DIVIDENDS PAID?

   
Generally, dividends are declared on each business day and are distributed
monthly. Any capital gains are distributed at least annually. Distributions are
paid in additional shares of the same class unless you elect to take the payment
in cash. For a more detailed discussion of dividends, see "Dividend Policies."
    

WHO MANAGES THE FUNDS?

Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Funds.
Banc One Investment Advisors is paid a fee for its services. A more detailed
discussion regarding Banc One Investment Advisors, its services and compensation
can be found in the Prospectus under the headings "The Advisor" and "Expense
Summary."






                                       2
<PAGE>   304

   
ONE GROUP(R) PRIME MONEY MARKET FUND
    

INVESTMENT OBJECTIVE

The Fund is a diversified money market fund that seeks current income with
liquidity and stability of principal.

PORTFOLIO SECURITIES

   
The Fund invests exclusively in high quality money market instruments. These
instruments include U.S. Treasury obligations, obligations issued or guaranteed
by U.S. government agencies or instrumentalities, mortgage-backed securities,
commercial paper, bank obligations and deposit notes. The Fund also may invest
in commercial paper issued by foreign issuers. The Fund may invest up to 10% of
its net assets in illiquid investments such as certain restricted securities and
private placements. The Fund also may engage in securities lending. For a list
of all of the securities in which the Fund may invest, please read "Investment
Policies."
    

RISK CONSIDERATIONS

   
The Fund invests in securities that are backed by "credit enhancements" such as
letters of credit. The value of your investment in the Fund could decrease if
the value of the securities in the portfolio decreases in response to declining
credit quality of a credit enhancement provider. The Fund also invests in U.S.
dollar denominated foreign investments which involve risks that are different
from investments in U.S. companies. In addition, the Fund invests in
mortgage-related securities which have significantly greater price and yield
volatility than traditional fixed income securities. Before you invest, please
read "More About the Funds" and "Investment Risks."
    




                                       3
<PAGE>   305

SHAREHOLDER EXPENSES

   
<TABLE>
<CAPTION>
                                                                                      SERVICE
SHAREHOLDER TRANSACTION EXPENSES(1)         CLASS A        CLASS B       CLASS C       CLASS    CLASS I
- -----------------------------------         -------        -------       -------       -----    -------

<S>                                          <C>           <C>         <C>           <C>             <C> 
Maximum Sales Charge Imposed on
  Purchases (as a percentage of
  offering price)                             none          none          none          none          none
Maximum Contingent Deferred Sales
  Charge (as a percentage of
  original purchase price or
  redemption proceeds, as
  applicable)                                 none          5.00%         1.00%         none          none
Redemption Fees                               none          none          none          none          none
Exchange Fees                                 none          none          none          none          none
ANNUAL OPERATING EXPENSES (2)
  (as a percentage of average daily
  net assets)
Investment Advisory Fees (3)                   .32%          .32%          .32%          .32%          .32%
12b-1 Fees (after fee waiver)(4)               .25%         1.00%         1.00%          .55%         none
Other Expenses (after reimbursements)(5)       .20%          .20%          .20%          .20%          .20%
Total Fund Operating Expenses                  .77%         1.52%         1.52%         1.07%          .52%
  (after fee waivers)(6)

(1)     If you buy or sell shares through a Shareholder Servicing Agent, you may be charged separate
        transaction fees by the Shareholder Servicing Agent. In addition, a $10.00 sub-minimum account fee
        may be applicable and a $7.00 charge will be deducted from redemption amounts paid by wire.

(2)     Expense information has been restated to reflect current fees.

(3)     Without the fee waiver, Investment Advisory fees would be .35% for all classes of shares.

(4)     Due to 12b-1 fees, long-term Class A, Class B, Class C and Service Class shareholders may pay more
        than the equivalent of the maximum front-end sales charges permitted under the rules of the
        National Association of Securities Dealers. Without the voluntary waiver of fees, 12b-1 fees would
        be .75% for Service Class shares.

(5)     Without expense reimbursements, Other Expenses would be .22% for all classes of shares.

(6)     Without a voluntary reduction of Investment Advisory and 12b-1 fees and reimbursement of Other
        Expenses, Total Operating Expenses would be .82% for Class A shares, 1.57% for Class B shares,
        1.57% for Class C shares, .57% for Class I shares and 1.32% for Service Class shares.
</TABLE>
    



                                       4
<PAGE>   306

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

   
<S>                                                 <C>               <C>             <C>               <C> 
Class A                                             $ 8               $25             $ 43              $ 95
Class A (without fee waiver)                        $ 8               $26             $ 46              $101
Class B                                             $65               $78             $103              $161
Class B (without fee waiver)                        $66               $80             $106              $167
Class C                                             $25               $48             $ 83              $181
Class C (without fee waiver)                        $26               $50             $ 86              $187
Class I                                             $ 5               $17             $ 29              $ 65
Class I (without fee waiver)                        $ 6               $18             $ 32              $ 71
    
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

   
<S>                                                 <C>               <C>             <C>               <C> 
Class A                                             $ 8               $25             $ 43              $ 95
Class A (without fee waiver)                        $ 8               $26             $ 46              $101
Class B                                             $15               $48             $ 83              $161
Class B (without fee waiver)                        $16               $50             $ 86              $167
Class C                                             $15               $48             $ 83              $181
Class C (without fee waiver)                        $16               $50             $ 86              $187
Class I                                             $ 5               $17             $ 29              $ 65
Class I (without fee waiver)                        $ 6               $18             $ 32              $ 71
    
</TABLE>

Class B shares automatically convert to Class A shares after eight years.
Therefore, the "10 years" examples above reflect this conversion.

Because of the nature of the shares, shareholders are not expected to remain in
Service Class shares for more than a very limited period of time. However, a
shareholder investing in the Service Class shares on a continual basis for a
period of one month would pay $1, three months would pay $3, one year would pay
$11. Without the voluntary fee reduction, that shareholder would pay $1 after
one month, $3 after three months, and $13 after one year.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


                                       5
<PAGE>   307

   
ONE GROUP(R) PRIME MONEY MARKET FUND FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
   
<CAPTION>
                                                                      YEARS ENDED JUNE 30,
         CLASS I                   1998          1997           1996           1995           1994           1993           1992
         -------                   ----          ----           ----           ----           ----           ----           ----
<S>                            <C>            <C>            <C>            <C>            <C>            <C>            <C>       
NET ASSET VALUE, BEGINNING
  OF PERIOD                    $    1.000     $    1.000     $    1.000     $    1.000     $    1.000     $    1.000     $    1.000
Investment Activities
  Net investment income             0.053          0.051          0.054          0.052          0.031          0.030          0.045
                               ----------     ----------     ----------     ----------     ----------     ----------     ----------
Less: Distributions
     Net investment income         (0.053)        (0.051)        (0.054)        (0.052)        (0.031)        (0.030)        (0.045)
                               ----------     ----------     ----------     ----------     ----------     ----------     ----------
NET ASSET VALUE, END OF PERIOD $    1.000     $    1.000     $    1.000     $    1.000     $    1.000     $    1.000     $    1.000
                               ----------     ----------     ----------     ----------     ----------     ----------     ----------
Total Return                         5.39%          5.20%          5.49%          5.34%          3.19%          3.09%          4.64%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
    000                        $2,616,698     $2,563,768     $2,186,562     $1,965,416     $1,600,876     $  979,275     $  946,504
  Ratio of expenses to average
    net assets                       0.51%          0.48%          0.44%          0.41%          0.40%          0.44%          0.59%
  Ratio of net investment
    income to average net
    assets                           5.26%          5.08%          5.34%          5.27%          3.18%          3.05%          4.49%
  Ratio of expenses to average
    net assets*                      0.58%          0.56%          0.55%          0.57%          0.59%          0.62%          0.76%
  Ratio of net investment
    income average net assets*       5.19%          5.00%          5.23%          5.12%          2.99%          2.87%          4.32%


<CAPTION>
CLASS I                                   1991           1990          1989
- -------                                   ----           ----          ----


<S>                                   <C>            <C>               <C>
NET ASSET VALUE, BEGINNING
  OF PERIOD                           $    1.000     $    1.000        $  1.000
Investment Activities
  Net investment income                    0.069          0.080           0.084
                                      ----------     ----------        --------
Less: Distributions
  Net investment income                   (0.069)        (0.080)         (0.084)
                                      ----------     ----------        --------
NET ASSET VALUE, END OF PERIOD        $    1.000     $    1.000        $  1.000
                                      ==========     ==========        ========
Total Return                                7.12%          8.33%           8.69%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)   $  760,726     $  562,680        $350,280
  Ratio of expenses to average
    net assets                              0.68%          0.64%           0.49%
  Ratio of net investment income
    to average net assets                   6.86%          8.02%           8.36%
  Ratio of expenses to average
    net assets*                             0.83%          0.79%           0.64%
  Ratio of net investment income
    average net assets*                     6.71%          7.87%           8.21%
</TABLE>
    


*  During the period certain fees were voluntarily reduced. If such voluntary
   fee reductions had not occurred, the ratios would have been as indicated.




                                       6
<PAGE>   308

<TABLE>
   
<CAPTION>
                                                                       YEARS ENDED JUNE 30,
                                                                       --------------------
         CLASS A                          1998            1997            1996            1995           1994        
         -------                          ----            ----            ----            ----           ----        


<S>                                   <C>             <C>             <C>             <C>             <C>            
NET ASSET VALUE, BEGINNING
  OF PERIOD                           $     1.000     $     1.000     $     1.000     $     1.000     $     1.000    
                                      -----------     -----------     -----------     -----------     -----------    
Investment Activities
  Net investment income                     0.050           0.048           0.051           0.050           0.027    
                                      -----------     -----------     -----------     -----------     -----------    
Less: Distributions
  Net investment income                    (0.050)         (0.048)         (0.051)         (0.050)         (0.027)   
                                      -----------     -----------     -----------     -----------     -----------    
NET ASSET VALUE, END OF PERIOD        $     1.000     $     1.000     $     1.000     $     1.000     $     1.000    
                                      ===========     ===========     ===========     ===========     ===========    
Total Return                                 5.13%           4.94%           5.22%           5.08%           2.93%   
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)   $   605,291     $   332,646     $   315,374     $   201,968     $    74,759    
  Ratio of expenses to average
    net assets                               0.76%           0.73%           0.69%           0.67%           0.65%   
  Ratio of net investment income
    to average net assets                    5.01%           4.83%           5.09%           5.02%           2.92%   
  Ratio of expenses to average
    net assets*                              0.83%           0.91%           0.90%           0.92%           0.90%   
  Ratio of net investment income
    to average net assets*                   4.94%           4.65%           4.88%           4.77%           2.67%   

<CAPTION>
                                                                       YEARS ENDED JUNE 30,
                                                                       --------------------
         CLASS A                          1993          1992(a)
         -------                          ----          -------


<S>                                   <C>             <C>        
NET ASSET VALUE, BEGINNING
  OF PERIOD                           $     1.000     $     1.000
                                      -----------     -----------
Investment Activities
  Net investment income                     0.030           0.013
                                      -----------     -----------
Less: Distributions
  Net investment income                    (0.030)         (0.013)
                                      -----------     -----------
NET ASSET VALUE, END OF PERIOD        $     1.000     $     1.000
                                      ===========     ===========
Total Return                                 2.83%           3.51%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)   $    61,106     $       511
  Ratio of expenses to average
    net assets                               0.65%           0.79%(b)
  Ratio of net investment income
    to average net assets                    2.67%           3.40%(b)
  Ratio of expenses to average
    net assets*                              0.99%           0.94%(b)
  Ratio of net investment income
    to average net assets*                   2.33%           3.25%(b)

*  During the period certain fees were  voluntarily  reduced.  If such  voluntary fee  reductions  had not occurred,  the
   ratios would have been as indicated. (a) Class A Shares commenced offering on February 18, 1992. (b) Annualized.
</TABLE>
    




                                       7
<PAGE>   309

<TABLE>
   
<CAPTION>
                                                                       NOVEMBER 21,
                                                          YEAR ENDED     1996 TO
                                                           JUNE 30,      JUNE 30,
         CLASS B                                             1998        1997(a)
         -------                                             ----        -------

<S>                                                       <C>          <C>     
NET ASSET VALUE, BEGINNING OF PERIOD                      $   1.00     $  1.000
                                                          --------     --------
Investment Activities
  Net investment income                                      0.043        0.026
                                                          --------     --------
Less: Distributions
  Net investment income                                     (0.043)      (0.026)
                                                          --------     --------
NET ASSET VALUE, END OF PERIOD                            ($  1.00)    $  1.000
                                                          --------     --------
Total Return (excludes sales charge)                          4.35%        2.63%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                       $  1.912     $    618
  Ratio of expenses to average net assets                     1.51%        1.51%(c)
  Ratio of net investment income to average net assets        4.25%        4.16%(c)
  Ratio of expenses to average net assets*                    1.57%        1.59%(c)
  Ratio of net investment income to average net assets*       4.19%        4.08%(c)
</TABLE>
    

*       During the period certain fees were voluntarily reduced. If such
        voluntary fee reductions had not occurred, the ratios would have been as
        indicated. (a) Period from commencement of operations. (b) Not
        annualized. (c) Annualized.





                                       8
<PAGE>   310

   
ONE GROUP(R) MUNICIPAL MONEY MARKET FUND
    

INVESTMENT OBJECTIVE

The Fund is a diversified fund that seeks as high a level of current interest
income exempt from Federal income tax as is consistent with capital preservation
and stability of principal.

PORTFOLIO SECURITIES

As a matter of fundamental policy, the Fund will invest at least 80% of its
total assets in municipal securities. These are securities issued by or on
behalf of the states, territories and possessions of the United States,
including the District of Columbia, and their political subdivisions, agencies,
instrumentalities and authorities. These municipal securities produce interest
that, in the opinion of bond counsel for the issuer, is exempt from Federal
income tax. However, the Fund may invest as much as 100% of its assets in
municipal securities that produce income that is subject to the Federal
alternative minimum tax. If you are subject to the Federal alternative minimum
tax, please read the section of this prospectus entitled "Tax Treatment of
Shareholders" before you invest. The Fund also may invest up to 20% of its total
assets in other types of securities, such as taxable money market instruments,
including repurchase agreements. For a list of all the securities in which the
Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

   
The Fund invests in securities that are backed by "credit enhancements" such as
letters of credit. The value of your investment in the Fund could decrease if
the value of the securities in the portfolio decreases in response to declining
credit quality of a credit enhancement provider. In addition, the Fund invests
in mortgage-related securities which have significantly greater price and yield
volatility than traditional fixed income securities. Before you invest, please
read "More Information about the Funds" and "Investment Risks."
    




                                       9
<PAGE>   311

SHAREHOLDER EXPENSES


   
<TABLE>
<CAPTION>
                                                                                               SERVICE
SHAREHOLDER TRANSACTION EXPENSES(1)                                     CLASS A     CLASS C     CLASS       CLASS I
- -----------------------------------                                     -------     -------     -----       -----  

<S>                                                                   <C>         <C>        <C>          <C> 
Maximum Sales Charge Imposed on Purchases (as a
  percentage of offering price)                                         none        none       none         none
Maximum Contingent Deferred Sales Charge (as a
  percentage of original purchase price or
  redemption proceeds, as applicable)                                   none        1.00%      none         none
Redemption Fees                                                         none        none       none         none
Exchange Fees
none                                                                    none        none       none
ANNUAL OPERATING EXPENSES (2)
  (as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver) (3)                         .25%        .25%       .25%         .25%
12b-1 Fees (4)                                                          .25%        1.00%      .55%         none
Other Expenses (after reimbursements)(5)                                .20%        .20%       .20%         .20%
Total Fund Operating Expenses (after fee waiver) (6)                    .70%        1.45%      .95%         .45%

(1)     If you buy or sell shares through a Shareholder Servicing Agent, you may be charged separate transaction
        fees by the Shareholder Servicing Agent. In addition, a $10.00 sub-minimum account fee may be applicable
        and a $7.00 charge will be deducted from redemption amounts paid by wire.

(2)     Expense information has been restated to reflect current fees.

(3)     Without a fee waiver, Investment Advisory Fees would be .35% for all classes of shares.

(4)     Due to 12b-1 fees, long-term Class A, Class C and Service Class shareholders may pay more than the
        equivalent of the maximum front-end sales charges permitted under the rules of the National Association
        of Securities Dealers. Without the voluntary waiver, 12b-1 fees would be .75% for Service Class shares.

(5)     Without expense reimbursements, Other Expenses would be .22% for all classes of shares.

(6)     Without a voluntary reduction of Investment Advisory and 12b-1 fees and reimbursement of Other Expenses,
        Total Operating Expenses would be .82% for Class A shares, 1.57% for Class C shares, 1.32% for Service
        Class shares and .57% for Class I shares.
</TABLE>
    




                                       10
<PAGE>   312

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.
   

<TABLE>
<CAPTION>
                                                   1 YEAR       3 YEARS               5 YEARS           10 YEARS
                                                   --------     -------               -------           --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 7               $22              $39               $ 87
Class A (without fee waiver)                         $ 8               $26              $46               $101
Class C                                              $25               $46              $79               $174
Class C (without fee waiver)                         $26               $50              $86               $187
Class I                                              $ 5               $14              $25               $ 57
Class I (without fee waiver)                         $ 6               $18              $32               $ 71
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
   
<CAPTION>
                                                   1 YEAR       3 YEARS               5 YEARS           10 YEARS
                                                   --------     -------               -------           --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 7               $22              $39               $ 87
Class A (without fee waiver)                         $ 8               $26              $46               $101
Class C                                              $15               $46              $79               $174
Class C (without fee waiver)                         $16               $50              $86               $187
Class I                                              $ 5               $14              $25               $ 57
Class I (without fee waiver)                         $ 6               $18              $32               $ 71
</TABLE>

Because of the nature of the shares, shareholders are not expected to remain in
Service Class shares for more than a very limited period of time. However, a
shareholder investing in the Service Class shares on a continual basis for a
period of one month would pay $1, three months would pay $2, and one year would
pay $10. Without the voluntary fee reduction, that shareholder would pay $1
after one month, $3 after three months, and $13 after one year.

    

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       11
<PAGE>   313

   
ONE GROUP(R) MUNICIPAL MONEY MARKET FUND FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
   
<CAPTION>
                                                                       YEARS ENDED JUNE 30,
              CLASS I                      1998                1997           1996             1995             1994         
              -------                      ----                ----           ----             ----             ----         
<S>                                     <C>              <C>              <C>              <C>              <C>              
NET ASSET VALUE, BEGINNING
    OF PERIOD                           $      1.000     $      1.000     $      1.000     $      1.000     $      1.000     
                                        ------------     ------------     ------------     ------------     ------------     
Investment Activities
    Net investment income                      0.032            0.031            0.033            0.032            0.021     
                                        ------------     ------------     ------------     ------------     ------------     
Less: Distributions
    Net investment income                     (0.032)          (0.031)          (0.033)          (0.032)          (0.021)    
                                        ------------     ------------     ------------     ------------     ------------     
NET ASSET VALUE, END OF PERIOD          $      1.000     $      1.000     $      1.000     $      1.000     $      1.000     
                                        ------------     ------------     ------------     ------------     ------------     
Total Return                                    3.27%            3.19%            3.34%            3.28%            2.16%    
                                        ------------     ------------     ------------     ------------     ------------     
RATIOS/SUPPLEMENTARY DATA:
    Net Assets at end of period(000)    $    498,127     $    467,420     $    459,807     $    437,743     $    352,702     
    Ratio of expenses to average net
        assets                                  0.45%            0.43%            0.41%            0.41%            0.40%    
    Ratio of net investment income to
        average net assets                      3.22%            3.16%            3.29%            3.26%            2.13%    
    Ratio of expenses to average net
        assets*                                 0.56%            0.55%            0.59%            0.59%            0.60%    
    Ratio of net investment income to
        average net assets*                     3.11%            3.04%            3.11%            3.08%            1.93%    

<CAPTION>
                                                             YEARS ENDED JUNE 30,
              CLASS I                        1993             1992            1991            1990         1989
              -------                        ----             ----            ----            ----         ----
<S>                                     <C>              <C>              <C>              <C>         
NET ASSET VALUE, BEGINNING
    OF PERIOD                           $      1.000     $      1.000     $      1.000     $      1.000    $ 1.000
                                        ------------     ------------     ------------     ------------    -------
Investment Activities
    Net investment income                      0.021            0.034            0.050            0.057      0.057
                                        ------------     ------------     ------------     ------------    -------
Less: Distributions
    Net investment income                     (0.021)          (0.034)          (0.050)          (0.057)    (0.057)
                                        ------------     ------------     ------------     ------------    -------
NET ASSET VALUE, END OF PERIOD          $      1.000     $      1.000     $      1.000     $      1.000    $ 1.000
                                        ------------     ------------     ------------     ------------    -------
Total Return                                    2.15%            3.47%            5.17%            5.82%      5.90%
                                        ------------     ------------     ------------     ------------    -------
RATIOS/SUPPLEMENTARY DATA:
    Net Assets at end of period(000)    $    175,277     $    170,961     $    166,200     $    145,712    $49,966
    Ratio of expenses to average net
        assets                                  0.46%            0.43%            0.32%            0.36%      0.39%
    Ratio of net investment income to
        average net assets                      2.12%            3.41%            5.04%            5.66%      5.75%
    Ratio of expenses to average net
        assets*                                 0.66%            0.80%            0.67%            0.76%      0.79%
    Ratio of net investment income to
        average net assets*                     1.92%            3.04%            4.69%            5.26%      5.35%
</TABLE>
    


*  During the period certain fees were voluntarily reduced. If such voluntary
   fee reductions had not occurred, the ratios would have been as indicated.
   

<TABLE>
<CAPTION>
                                                                      YEARS ENDED JUNE 30,
         CLASS A                                  1998            1997            1996            1995       
         -------                                  ----            ----            ----            ----       


<S>                                           <C>             <C>             <C>             <C>            
NET ASSET VALUE, BEGINNING OF
  PERIOD                                      $     1.000     $     1.000     $     1.000     $     1.000    
                                                              -----------     -----------     -----------    
Investment Activities
  Net investment income                             0.030           0.029           0.030           0.030    
                                                              -----------     -----------     -----------    
Less: Distributions
  Net investment income                            (0.030)         (0.029)         (0.030)         (0.030)   
                                              -----------     -----------     -----------     -----------    
NET ASSET VALUE, END OF PERIOD                $     1.000     $     1.000     $     1.000     $     1.000    
                                              ===========     ===========     ===========     ===========    
Total Return                                         3.01%           2.97%           3.08%           3.02%   
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period(000)            $   104,809     $    48,185     $    50,720     $    56,518    
  Ratio of expenses to average
    net assets                                       0.70%           0.68%           0.66%           0.66%   
  Ratio of net investment income
    to average net assets                            2.97%           2.91%           3.04%           3.01%   
  Ratio of expenses to average
    net assets*                                      0.81%           0.90%           0.94%           0.94%   
  Ratio of net investment income
    to average net assets*                           2.86%           2.69%           2.76%           2.73%   

<CAPTION>
                                                           YEARS ENDED JUNE 30,
         CLASS A                                  1994            1993            1992(a)
         -------                                  ----            ----            -------


<S>                                           <C>             <C>             <C>        
NET ASSET VALUE, BEGINNING OF
  PERIOD                                      $     1.000     $     1.000     $     1.000
                                              -----------     -----------     -----------
Investment Activities
  Net investment income                             0.021           0.019           0.009
                                              -----------     -----------     -----------
Less: Distributions
  Net investment income                            (0.021)         (0.019)         (0.009)
                                              -----------     -----------     -----------
NET ASSET VALUE, END OF PERIOD                $     1.000     $     1.000
                                              ===========     ===========                  
Total Return                                         1.96%           1.89%           2.48%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period(000)            $    41,595     $    18,932     $       122
  Ratio of expenses to average
    net assets                                       0.65%           0.66%           0.84%(b)
  Ratio of net investment income
    to average net assets                            1.92%           1.82%           2.44%(b)
  Ratio of expenses to average
    net assets*                                      0.91%           1.01%           0.99%(b)
  Ratio of net investment income
    to average net assets*                           1.66%           1.47%           2.29%(b)
</TABLE>
    


*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated. (a) Class
A shares commenced offering on February 18, 1992. (b) Annualized.




                                       12
<PAGE>   314

   
ONE GROUP(R) OHIO MUNICIPAL MONEY MARKET FUND
    

INVESTMENT OBJECTIVE

The Fund is a non-diversified money market fund that seeks as high a level of
current interest income exempt from Federal income tax and Ohio personal income
tax as is consistent with capital preservation and stability of principal.

PORTFOLIO SECURITIES
   

The Fund will invest at least 80% of its total assets in Ohio municipal
securities. These are securities issued by or on behalf of the State of Ohio and
its political subdivisions, agencies, instrumentalities and authorities. Ohio
municipal securities produce interest that, in the opinion of bond counsel for
the issuer, is exempt from both Federal income tax and Ohio personal income tax.
The Fund also may invest up to 20% of its total assets in non-Ohio municipal
securities, i.e., municipal securities issued by states, territories and
possessions of the United States, including the District of Columbia, other than
Ohio, as well as their political subdivisions, agencies, instrumentalities and
authorities that produce interest exempt from Federal income tax. The Fund has
the ability, for temporary defensive purposes, to invest as much as 100% of its
assets in non-Ohio municipal securities that produce income that is subject to
the Federal alternative minimum tax. If you are subject to the Federal
alternative minimum tax, please read the section of this prospectus entitled
"Tax Treatment of Shareholders" before you invest. Finally, the Fund also may
invest up to 20% of its total assets in other types of securities, such as
taxable money market instruments, including repurchase agreements. For a list of
all the securities in which the Fund may invest, please read "Investment
Practices."
    

RISK CONSIDERATIONS

   
Because of the relatively small number of issuers of Ohio municipal securities,
the Fund's performance is affected to a greater extent by the success of one or
a few issuers than is the performance of a diversified fund. In addition, the
Fund invests in mortgage-related securities which have significantly greater
price and yield volatility than traditional fixed income securities. Finally,
the Fund invests in securities that are backed by "credit enhancements" such as
letters of credit. The value of your investment in the Fund could decrease if
the value of the securities in the portfolio decreases in response to declining
credit quality of a credit enhancement provider. Before you invest, please read
"More About the Funds" and "Investment Risks."
    





                                       13
<PAGE>   315

SHAREHOLDER EXPENSES

<TABLE>
   
<CAPTION>
                                                                                SERVICE
SHAREHOLDER TRANSACTION EXPENSES(1)                  CLASS A       CLASS C      CLASS        CLASS I
- -----------------------------------                  -------       -------      -----        -------

<S>                                                   <C>         <C>          <C>           <C> 
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                  none         none         none         none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase price
  or redemption proceeds, as applicable)               none         1.00%        none         none
Redemption Fees                                        none         none         none         none
Exchange Fees                                          none         none         none         none
ANNUAL OPERATING EXPENSES (2)
  (as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver) (3)         .27%         .27%         .27%         .27%
12b-1 Fees(4)                                           .25%        1.00%         .55%        none
Other Expenses (after reimbursements) (5)               .18%         .18%         .18%         .18%
Total Fund Operating Expenses (after fee
  waivers) (6)                                          .70%        1.45%        1.00%         .45%

(1)     If you buy or sell shares through a Shareholder Servicing Agent, you may be charged separate transaction fees by
        the Shareholder Servicing Agent. In addition, a $10.00 sub-minimum account fee may be applicable and a $7.00
        charge will be deducted from redemption amounts paid by wire.

(2)     Expense information has been restated to reflect current fees.

(3)     Without a fee waiver, Investment Advisory Fees would be .30% for all classes of shares.

(4)     Due to 12b-1 fees, long-term Class A, Class C and Service Class shareholders may pay more than the equivalent of
        the maximum front-end sales charges permitted under the rules of the National Association of Securities Dealers.
        Without the voluntary waiver, 12b-1 fees would be .75% for Service Class shares.

(5)     Without expense reimbursements, Other Expenses would be .25% for all classes of shares.

(6)     Without a voluntary reduction of Investment Advisory Fees or 12b-1 fee and reimbursement of Other 
        Expenses, Total Operating Expenses would be .80% for Class A shares, 1.55% for Class C shares, .55% for Class I 
        shares, and 1.30% for Service Class shares.
</TABLE>
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
   
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 7               $22              $39               $ 87
Class A (without fee waivers)                        $ 8               $26              $44               $ 99
Class C                                              $25               $46              $79               $174
Class C (without fee waivers)                        $26               $49              $84               $185
Class I                                              $ 5               $14              $25               $ 57
Class I (without fee waivers)                        $ 6               $18              $31               $ 69
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
   
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 7               $22              $39               $ 87
Class A (without fee waivers)                        $ 8               $26              $44               $ 99
Class C                                              $15               $46              $79               $174
</TABLE>
    


                                       14
<PAGE>   316

<TABLE>
   
<S>                                                  <C>               <C>              <C>               <C> 
Class C (without fee waiver)                         $16               $49              $84               $185
Class I                                              $ 5               $14              $25               $ 57
Class I (without fee waivers)                        $ 6               $18              $31               $ 69
</TABLE>

Because of the nature of the shares, shareholders are not expected to remain in
Service Class shares for more than a very limited period of time. However, a
shareholder investing in the Service Class shares on a continual basis for a
period of one month would pay $1, three months would pay $2, and one year would
pay $10. Without the voluntary fee reduction, that shareholder would pay $1
after one month, $3 after three months, and $13 after one year.
    

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       15
<PAGE>   317

   
       ONE GROUP(R) OHIO MUNICIPAL MONEY MARKET FUND FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.


<TABLE>
   
<CAPTION>
                                                                                                                      JUNE 9,
                                                                                                                     1993 TO
                                                             YEARS ENDED JUNE 30,                                     JUNE 30,
                  CLASS I                  1998           1997           1996           1995           1994           1993(a)
                  -------                  ----           ----           ----           ----           ----           -------


<S>                                    <C>            <C>            <C>            <C>            <C>            <C>       
NET ASSET VALUE, BEGINNING OF PERIOD   $    1.000     $    1.000     $    1.000     $    1.000     $    1.000     $    1.000
                                       ----------     ----------     ----------     ----------     ----------     ----------
Investment Activities
  Net investment income                     0.033          0.032          0.033          0.032          0.022          0.013
                                       ----------     ----------     ----------     ----------     ----------     ----------
Less: Distributions
  Net investment income                    (0.033)        (0.032)        (0.032)        (0.032)        (0.022)        (0.013)
  In excess of net investment income         --             --           (0.001)          --             --             --
Total Distributions                        (0.033)        (0.032)        (0.033)        (0.032)        (0.022)        (0.013)
                                       ----------     ----------     ----------     ----------     ----------     ----------
NET ASSET VALUE, END OF PERIOD         $    1.000     $    1.000     $    1.000     $    1.000     $    1.000     $    1.000
                                       ----------     ----------     ----------     ----------     ----------     ----------
Total Return                                 3.31%          3.22%          3.34%          3.20%          2.25%          2.14%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)    $   77,224     $   56,442     $   55,915     $   51,806     $   55,375     $    3,500
  Ratio of expenses to average net
    assets                                   0.40%          0.40%          0.41%          0.41%          0.34%          0.08%(b)
  Ratio of net investment income to
    average net assets                       3.27%          3.17%          3.19%          3.13%          2.29%          2.07%(b)
  Ratio of expenses to average net
    assets*                                  0.53%          0.53%          0.71%          0.60%          0.57%          0.51%(b)
  Ratio of net investment income to
    average net assets*                      3.14%          3.04%          2.89%          2.94%          2.06%          1.64%(b)
</TABLE>
    

*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a) Period from commencement of operations. (b) Annualized.

<TABLE>
   
<CAPTION>
                                                                                                                 JANUARY 26,
                                                                                                                   1993 TO
                                                                    YEARS ENDED JUNE 30,                           JUNE 30,
                 CLASS A                         1998        1997           1996          1995          1994        1993(a)
                 -------                         ----        ----           ----          ----          ----        -------


<S>                                          <C>           <C>           <C>           <C>           <C>           <C>      
NET ASSET VALUE, BEGINNING OF PERIOD         $   1.000     $   1.000     $   1.000     $   1.000     $   1.000     $   1.000
                                             ---------     ---------     ---------     ---------     ---------     ---------
Investment Activities
  Net investment income                          0.030         0.029         0.030         0.029         0.021         0.009
                                             ---------     ---------     ---------     ---------     ---------     ---------
Less: Distributions  
  Net investment income                         (0.030)       (0.029)       (0.029)       (0.029)       (0.021)       (0.009)
                                             ---------     ---------     ---------     ---------     ---------     ---------
  In excess of net investment income              --            --          (0.001)         --            --            --
                                                                         ---------     ---------     ---------     ---------
Total Distributions                             (0.030)       (0.029)       (0.030)       (0.029)       (0.021)       (0.009)
                                             ---------     ---------     ---------     ---------     ---------     ---------
NET ASSET VALUE, END OF PERIOD               $   1.000     $   1.000     $   1.000     $   1.000     $   1.000     $   1.000
                                             ---------     ---------     ---------     ---------     ---------     ---------
Total Return                                      3.06%         2.96%         3.08%         2.98%         2.09%         2.34%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)          $  39,100     $  30,479     $  41,132     $  35,790     $  37,356     $  25,125
  Ratio of expenses to average net
    assets                                        0.65%         0.65%         0.66%         0.63%         0.44%         0.26%(b)
  Ratio of net investment income to
    average net assets                            2.98%         2.90%         2.94%         2.91%         2.05%         2.03%(b)
  Ratio of expenses to average net
    assets*                                       0.78%         0.88%         1.06%         0.95%         0.94%         0.92%(b)
  Ratio of net investment income to
    average net assets*                           2.85%         2.67%         2.54%         2.59%         1.55%         1.37%(b)
</TABLE>
    

*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a) Period from commencement of operations. (b) Annualized.




                                       16
<PAGE>   318

   
ONE GROUP(R) U.S. TREASURY SECURITIES MONEY MARKET FUND
    

INVESTMENT OBJECTIVE

The Fund is a diversified money market fund that seeks current income with
liquidity and stability of principal.

PORTFOLIO SECURITIES

   
The Fund will invest exclusively in short-term U.S. Treasury obligations
including repurchase agreements collateralized by such Treasury obligations and
when-issued securities. The Fund also may engage in securities lending. For a
list of all the securities in which the Fund may invest, please read "Investment
Practices."
    

RISK CONSIDERATIONS

Before you invest, please read "More About the Funds" and "Investment Risks."


<TABLE>
   
<CAPTION>
SHAREHOLDER EXPENSES
                                                                              SERVICE
SHAREHOLDER TRANSACTION EXPENSES(1)          CLASS A    CLASS B     CLASS C    CLASS     CLASS I
- -----------------------------------          -------    -------     -------    -----     -------


<S>                                            <C>        <C>        <C>        <C>        <C> 
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)          none       none       none       none       none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                  none       5.00%      1.00%      none       none
Redemption Fees                                none       none       none       none       none
Exchange Fees                                  none       none       none       none       none
ANNUAL OPERATING EXPENSES (2)
  (as a percentage of average daily
  net assets)
Investment Advisory Fees (after fee waier)(3)   .32%       .32%       .32%       .32%       .32%
12b-1 Fees (after fee waiver)(4)                .25%      1.00%      1.00%       .55%      none
Other Expenses                                  .18%       .18%       .18%       .18%       .18%
Total Fund Operating Expenses
  (after fee waivers) (5)                       .75%      1.50%      1.50%      1.05%       .50%

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be charged separate transaction fees by
     the Shareholder Servicing Agent. In addition, a $10.00 sub-minimum account fee may be applicable and a $7.00 charge
     will be deducted from redemption amounts paid by wire.

(2)  Expense information has been restated to reflect current fees.

(3)  Without a fee waiver, Investment Advisory fees would be .35% for all classes of shares.

(4)  Due to 12b-1 fees, long-term Class A, Class B, Class C and Service Class shareholders may pay more than the
     equivalent of the maximum front-end sales charges permitted under the rules of the National Association of
     Securities Dealers. Without the voluntary waiver of fees, 12b-1 fees would be .75% for Service Class shares.

(5)  Without a voluntary reduction of Investment Advisory and 12b-1 fees, Total Fund Operating Expenses would be .78% for
     Class A shares, 1.53% for Class B shares, 1.53% for Class C shares, 1.28% for Service Class shares and .53% 
     for Class I shares.
</TABLE>
    




                                       17
<PAGE>   319

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.

<TABLE>
   
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 8               $24              $ 42              $ 93
Class A (without fee waiver)                         $ 8               $25              $ 43              $ 97
Class B                                              $65               $77              $102              $159
Class B (without fee waiver)                         $66               $78              $103              $162
Class C                                              $25               $47              $ 82              $179
Class C (without fee waiver)                         $26               $48              $ 83              $182
Class I                                              $ 5               $16              $28               $ 63
Class I (without fee waiver)                         $ 5               $17              $30               $ 66
</TABLE>
    

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
   
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 8               $24              $42               $ 93
Class A (without fee waiver)                         $ 8               $25              $43               $ 97
Class B                                              $15               $47              $82               $159
Class B (without fee waiver)                         $16               $48              $83               $162
Class C                                              $15               $47              $82               $179
Class C (without fee waiver)                         $16               $48              $83               $182
Class I                                              $ 5               $16              $28               $ 63
Class I (without fee waiver)                         $ 5               $17              $30               $ 66
</TABLE>
    

Because of the nature of the shares, shareholders are not expected to remain in
Service Class shares for more than a very limited period of time. However, a
shareholder investing in the Service Class shares on a continual basis for a
period of one month would pay $1, three months would pay 3, and one year would
pay $11. Without the voluntary fee reduction, that shareholder would pay $1
after one month, $3 after three months, and $13 after one year.

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.




                                       18
<PAGE>   320

   
  ONE GROUP(R) U.S. TREASURY SECURITIES MONEY MARKET FUND FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
   
<CAPTION>
                                                                   YEARS ENDED JUNE 30,
               CLASS I                         1998               1997             1996             1995         
               -------                         ----               ----             ----             ----         


<S>                                        <C>                <C>              <C>              <C>              
NET ASSET VALUE, BEGINNING  OF PERIOD      $      1.000       $      1.000     $      1.000     $      1.000     
                                           ------------       ------------     ------------     ------------     
Investment Activities
  Net investment income                           0.051              0.050            0.052            0.050     
                                           ------------       ------------     ------------     ------------     
Less: Distributions
  Net investment income                          (0.051)            (0.050)(a)       (0.052)          (0.050)    
                                           ------------       ------------     ------------     ------------     
NET ASSET VALUE, END OF PERIOD             $      1.000       $      1.000     $      1.000     $      1.000     
                                           ------------       ------------     ------------     ------------     
Total Return                                       5.19%              5.07%            5.34%            5.07%    
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
  at(000)                                  $  3,025,608       $  2,243,376     $  1,844,590     $  1,178,091     
  Ratio of expenses to
    average net assets                              .52%              0.46%            0.42%            0.41%    
  Ratio of net investment
    income to average net
    assets                                         5.07%              4.95%            5.17%            4.96%    
  Ratio of expenses to average
    net assets*                                    0.60%              0.57%            0.56%            0.59%    
  Ratio of net investment
    income to average net
    assets*                                        4.99%              4.84%            5.03%            4.78%    

<CAPTION>
                                                          YEARS ENDED JUNE 30,
               CLASS I                        1994             1993             1992         
               -------                        ----             ----             ----         


<S>                                       <C>              <C>              <C>                         
NET ASSET VALUE, BEGINNING  OF PERIOD     $      1.000     $      1.000     $      1.000     
                                          ------------     ------------     ------------     
Investment Activities
  Net investment income                          0.030            0.029            0.043     
                                          ------------     ------------     ------------     
Less: Distributions
  Net investment income                         (0.030)          (0.029)          (0.043)    
                                          ------------     ------------     ------------     
NET ASSET VALUE, END OF PERIOD            $      1.000     $      1.000     $      1.000
                                          ------------     ------------     ------------
Total Return                                      3.01%            2.89%            4.40%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period
  at(000)                                 $    969,326     $    492,862     $    410,146 
  Ratio of expenses to
    average net assets                            0.40%            0.45%            0.55%
  Ratio of net investment
    income to average net
    assets                                        3.02%            2.85%            4.25%
  Ratio of expenses to average
    net assets*                                   0.58%            0.67%            0.77%
  Ratio of net investment
    income to average net
    assets*                                       2.84%            2.63%            4.04%
<CAPTION>
                                                              1991              1990       1989
                                                              ----              ----       ----

<S>                                                       <C>              <C>             <C>
NET ASSET VALUE, BEGINNING OF PERIOD                      $      1.000     $      1.000    $ 1.000
                                                          ------------     ------------    -------
Investment Activities
  Net investment income                                          0.062            0.078      0.080
                                                          ------------     ------------    -------
Less: Distributions
  Net investment income                                         (0.062)          (0.078)    (0.800)
                                                          ------------     ------------    -------
NET ASSET VALUE, END OF PERIOD                            $      1.000     $      1.000    $ 1.000
                                                          ============     ============    =======
Total Return                                                      6.63%            8.10%      8.31%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                       $    339,987     $    119,544    $92,711
  Ratio of expenses to average net assets                         0.60%            0.59%      0.51%
  Ratio of net investment income to average net assets            6.20%            7.82%      8.01%
  Ratio of expenses to average net assets*                        0.80%            0.79%      0.71%
  Ratio of net investment income to average net assets*           6.00%            7.62%      7.81%
</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)
   Includes $.000002 short term capital gain.




                                       19
<PAGE>   321

<TABLE>
   
<CAPTION>
                                                                         YEARS ENDED JUNE 30,
                                                                         --------------------
CLASS A                                                   1998          1997            1996          1995          1994       
- -------

<S>                                                    <C>           <C>             <C>           <C>             <C>           
NET ASSET VALUE, BEGINNING OF PERIOD                   $    1.000    $    1.000      $    1.000    $    1.000     $ 1.000    
                                                       ----------    ----------      ----------    ----------    ----------
Investment Activities
Net investment income                                       0.048         0.047           0.050         0.047       0.027
                                                       ----------    ----------      ----------    ----------   
Less: Distributions
Net investment income                                      (0.048)       (0.047)(a)      (0.050)       (0.047)     (0.027)
                                                       ----------    ----------      ----------    ----------    ----------
NET ASSET VALUE, END OF PERIOD                         $    1.000    $    1.000      $    1.000    $    1.000     $ 1.000
                                                       ----------    ----------      ----------    ----------    ----------
Total Return                                                 4.92%         4.81%           5.08%         4.81%       2.76%
RATIOS/SUPPLEMENTARY DATA
Net Assets at end of period (000)                      $  861,350    $  530,164      $  110,864    $   98,723     $53,423
Ratio of expenses to average net assets                      0.77%         0.72%           0.67%         0.66%       0.63%
Ratio of net investment income to average net assets         4.82%         4.71%           4.92%         4.71%       2.81%
Ratio of expenses to average net assets*                     0.86%         0.93%           0.91%         0.94%       0.87%
Ratio of net investment income to average net assets*        4.73%         4.50%           4.68%         4.43%       2.57%

<CAPTION>
                                                         YEARS ENDED JUNE 30,
                                                         --------------------
CLASS A                                                   1993          1992(b)
- -------

<S>                                                    <C>           <C>       
NET ASSET VALUE, BEGINNING OF PERIOD                   $    1.000    $    1.000
                                                       ----------    ----------
Investment Activities
Net investment income                                       0.026         0.012
                                                       ----------    ----------
Less: Distributions
Net investment income                                      (0.026)       (0.012)
                                                       ----------    ----------
NET ASSET VALUE, END OF PERIOD                         $    1.000    $    1.000
                                                       ----------    ----------
Total Return                                                 2.63%         3.38%(c)
RATIOS/SUPPLEMENTARY DATA
Net Assets at end of period (000)                      $   30,759    $        6
Ratio of expenses to average net assets                      0.65%         0.59%(c)
Ratio of net investment income to average net assets         2.52%         2.51%(c)
Ratio of expenses to average net assets*                     1.02%         0.71%(c)
Ratio of net investment income to average net assets*        2.15%         2.39%(c)
</TABLE>
    


*    During the period certain fees were voluntarily reduced. If such voluntary
     fee reductions had not occurred, the ratios would have been as indicated.
     (a) Includes $.000002 short term capital gain. (b) Class A Shares commenced
     offering on February 18, 1992. (c) Annualized.


<TABLE>
   
<CAPTION>
                                                                       NOVEMBER 21,
                                                                        1996 TO
                                                          YEAR ENDED    JUNE 30,
CLASS B                                                  JUNE 30, 1998   1997(a)
- -------                                                  -------------   -------


<S>                                                      <C>          <C>      
NET ASSET VALUE, BEGINNING OF PERIOD                     $   1.000    $   1.000
                                                         ---------    ---------
Investment Activities
  Net investment income                                      0.041        0.024
                                                         ---------    ---------
Less: Distributions
  Net investment income                                     (0.041)      (0.024)(b)
                                                         ---------    ---------
NET ASSET VALUE, END OF PERIOD                           $   1.000    $   1.000
                                                         ---------    ---------
Total Return (excludes sales charge)                          4.14%        2.44%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                      $     181    $      49
  Ratio of expenses to average net assets                     1.52%        1.48%(d)
  Ratio of net investment income to average net assets        4.06%        3.97%(d)
  Ratio of expenses to average net assets*                    1.60%        1.59%(d)
  Ratio of net investment income to average net assets*       3.98%        3.86%(d)
</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) Includes $.000002 short
     term capital gain. (c) Not annualized. (d) Annualized.




                                       20
<PAGE>   322

   
ONE GROUP(R) MICHIGAN MUNICIPAL MONEY MARKET FUND

INVESTMENT OBJECTIVE

The Fund is a non-diversified money market fund that seeks as high a level of
current interest income exempt from Federal income tax and Michigan personal
income tax as is consistent with capital preservation and stability of
principal.

PORTFOLIO SECURITIES
    

   
The Fund will invest at least 80% of its total assets in Michigan municipal
securities. These are securities issued by or on behalf of the State of Michigan
and its political subdivisions, agencies, instrumentalities and authorities.
Michigan municipal securities produce interest that, in the opinion of bond
counsel for the issuer, is exempt from both Federal income tax and Michigan
personal income tax. The Fund also may invest up to 20% of its total assets in
non-Michigan municipal securities, i.e., municipal securities issued by states,
territories and possessions of the United States, including the District of
Columbia, other than Michigan, as well as their political subdivisions,
agencies, instrumentalities and authorities that produce interest exempt from
Federal income tax. The Fund has the ability, for temporary defensive purposes
to invest as much as 100% of its assets in non-Michigan municipal securities
that produce income that is subject to the Federal alternative minimum tax. If
you are subject to the Federal alternative minimum tax, please read the section
of this prospectus entitled "Tax Treatment of Shareholders" before you invest.
Finally, the Fund also may invest up to 20% of its total assets in other types
of securities, such as taxable money market instruments, including repurchase
agreements. For a list of all the securities in which the Fund may invest,
please read "Investment Practices."
    

   
RISK CONSIDERATIONS

Because of the relatively small number of issuers of Michigan municipal
securities, the Fund's performance is affected to a greater extent by the
success of one or a few issuers than is the performance of a diversified fund.
In addition, the Fund invests in mortgage-related securities which have
significantly greater price and yield volatility than traditional fixed income
securities. Finally, the Fund invests in securities that are backed by "credit
enhancements" such as letters of credit. The value of your investment in the
Fund could decrease if the value of the securities in the portfolio decreases in
response to declining credit quality of a credit enhancement provider. Before
you invest, please read "More About the Funds" and "Investment Risks."
    





                                       21
<PAGE>   323

<TABLE>
   
<CAPTION>
SHAREHOLDER EXPENSES

                                                                             SERVICE
SHAREHOLDER TRANSACTION EXPENSES(1)                 CLASS A      CLASS C     CLASS       CLASS I
- -----------------------------------                 ---------    ---------   -----       -------

<S>                                                   <C>        <C>         <C>          <C> 
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                 none        none        none        none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase price
  or redemption proceeds, as applicable)              none        1.00%       none        none
Redemption Fees                                       none        none        none        none
Exchange Fees                                         none        none        none        none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver) (2)        .27%        .27%        .27%        .27%
12b-1 Fees (after fee waiver)(3)                       .25%       1.00%        .55%       none
Other Expenses (after  reimbursements) (4)             .22%        .22%        .22%        .22%
Total Fund Operating Expenses (after fee               .74%       1.49%       1.04%        .49%
  waivers) (5)

(1)  If you buy or sell shares through a Shareholder Servicing Agent, you may be charged separate
     transaction fees by the Shareholder Servicing Agent. In addition, a $10.00 sub-minimum account
     fee may be applicable and a $7.00 charge will be deducted from redemption amounts paid by wire.

(2)  Without a fee waiver, Investment Advisory Fees would be .35% for all classes of shares.

(3)  Due to 12b-1 fees, long-term Class A, Class C and Service Class shareholders may pay more than
     the equivalent of the maximum front-end sales charges permitted under the rules of the National
     Association of Securities Dealers. Without the voluntary waiver, 12b-1 Fees would be .75% for
     Service Class shares.

(4)  Without expense reimbursements, Other Expenses would be .24% for all classes of shares. 

(5)  Without a voluntary reduction of Investment Advisory and 12b-1 fees and reimbursement of Other
     Expenses, Total Operating Expenses would be .84% for Class A shares, 1.59% for Class C shares,
     .59% for Class I shares, and 1.34% for Service Class shares.
</TABLE>
    

   
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.
    

   
<TABLE>
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 8               $24              $41               $ 92
Class A (without fee waivers)                        $ 9               $27              $47               $104
Class C                                              $25               $47              $81               $178
Class C (without fee waivers)                        $26               $50              $87               $189
Class I                                              $ 5               $16              $27               $ 62
Class I (without fee waivers)                        $ 6               $19              $33               $ 74
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:
    



                                                 22
<PAGE>   324

<TABLE>
   
<CAPTION>
                                                  1 YEAR            3 YEARS          5 YEARS          10 YEARS
                                                  ------            -------          -------          --------

<S>                                                  <C>               <C>              <C>               <C> 
Class A                                              $ 8               $24              $41               $ 92
Class A (without fee waivers)                        $ 9               $27              $47               $104
Class C                                              $15               $47              $81               $178
Class C (without fee waiver)                         $16               $50              $87               $189
Class I                                              $ 5               $16              $27               $ 62
Class I (without fee waivers)                        $ 6               $19              $33               $ 74
</TABLE>
    

   
Because of the nature of the shares, shareholders are not expected to remain in
Service Class shares for more than a very limited period of time. However, a
shareholder investing in the Service Class shares on a continual basis for a
period of one month would pay $1, three months would pay $3, and one year would
pay $11. Without the voluntary fee reduction, that shareholder would pay $1
after one month, $3 after three months, and $14 after one year.
    

   
These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


ONE GROUP MICHIGAN MUNICIPAL MONEY MARKET FUND FINANCIAL HIGHLIGHTS
    

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by ____________________ whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    




                                       23
<PAGE>   325

                              MORE ABOUT THE FUNDS

PORTFOLIO QUALITY

   
Securities will be purchased by the Funds only if Banc One Investment Advisors
determine that they present minimal credit risk under guidelines adopted by the
One Group Board of Trustees. In addition, unless a more specific rating is
specified, all investments of the Funds must be rated in one of the two highest
rating categories described in "Description of Ratings" in the Appendix. If an
investment is unrated, Banc One Investment Advisors must determine that it is of
comparable quality to a rated security. Banc One Investment Advisors will look
at a security's rating at the time of investment. For more information about
ratings, please see "Description of Ratings" in the Appendix.
    

ILLIQUID INVESTMENTS

   
Each Fund may invest up to 10% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by the Board of Trustees in determining whether an investment
is illiquid.
    

SPECIAL RISK CONSIDERATIONS

Net Asset Value: There is no assurance that the Funds will meet their investment
objectives or be able to maintain a net asset value of $1.00 per share on a
continuous basis.

   
Non-Diversified Funds: The Ohio Municipal Money Market Fund and the Michigan
Municipal Money Market Fund are "non-diversified" funds. "Non-diversified" means
that each Fund may invest a significantly greater portion of its assets in the
securities of a single issuer than can a "diversified" fund. In addition, each
Fund's investments are concentrated geographically. These concentrations
increase the risk of loss to each Fund if the issuer of a security fails to make
interest or principal payments or if the market value of a security declines.
Investment in each Fund may entail more risks than an investment in another type
of money market fund.
    

The Ohio Economy: The Ohio Municipal Money Market Fund's investments are
concentrated in the State of Ohio. While Ohio's economy has become increasingly
diversified, it continues to rely to a significant degree on durable goods
manufacturing, such as automobiles, tires, steel and household appliances. These
industries tend to be cyclical. Agriculture also is an important part of the
Ohio economy, and the state has several programs that provide financial
assistance to farmers. Although obligations issued by the state and its
political subdivisions are payable from specific sources or taxes, future
economic difficulties and the impact on state and local government finances may
negatively affect the market value of the Ohio municipal securities held by the
Ohio Municipal Money Market Fund.

   
The Michigan Economy: The Michigan Municipal Money Market Fund's investments are
concentrated in the State of Michigan. The Michigan economy is heavily dependent
on the automobile industry, a highly cyclical industry. This effects the revenue
streams of the State and local governments because of its impact on tax sources,
particularly sales taxes, income taxes, and Michigan single business taxes.
State and local revenues also are affected by statutory and constitutional
changes adopted in 1993 and 1994, which limit annual assessment increases and
transfer the financing of education costs from property taxes to sales taxes.
    

Fixed Income Securities: Investments in fixed income securities (for example,
bonds) will increase or decrease in value based on changes in interest rates. If
rates increase, the value of a Fund's investments generally declines. On the
other hand, if rates fall, the value of the investments generally increases. The
value of your investment in a Fund will increase and decrease as the value of a
Fund's investments increase and decrease. While securities with longer duration
and maturities tend to produce higher yields, they also are subject to greater
fluctuations in value when interest rates change. Usually changes in the value
of fixed income securities will not affect cash income generated, but may affect
the value of your investment.

   
Derivatives: Some of the Funds invest in securities that are considered to be
derivatives. Derivatives are securities or contracts that derive their value
from the performance of underlying assets or securities. These securities may be
more volatile than other securities. These include mortgage-backed securities,
including collateralized mortgage obligations and Real Estate Mortgage
Investment Conduits (CMOs and REMICs) and asset-backed securities. Derivatives
present, to varying degrees, market, credit, leverage, liquidity, and management
risks. The Fund's use of derivatives may cause the Fund to recognize higher
amounts of short-term capital gains (generally taxed at ordinary income tax
rates) than it would if the Fund did not use such instruments. For a more
detailed discussion of these risks, please read "Investment Risks."
    



                                       24
<PAGE>   326

   
Foreign Securities: Investments in foreign securities involve risks different
from investments in U.S. securities. For more details, see "Investment
Practices" and "Investment Risks." On January 1, 1999, the European Economic and
Monetary Union introduced the "Euro." The Euro will serve as a common currency
for participating European nations. All government securities issued by
participating nations will be in Euros, and outstanding government securities
will be redenominated in Euros. The introduction of the Euro presents some
uncertainties, such as the adequacy of newly created accounting, clearing,
settlement and payment systems for the new currency. These uncertainties
surrounding the introduction of the Euro could adversely affect the value of the
securities held by a Fund.
    


                                       25
<PAGE>   327

               HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS
                             PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

         -        The One Group Services Company, and

         -        Shareholder Servicing Agents. These include investment
                  advisors, brokers, financial planners, banks, insurance
                  companies, retirement or 401(k) plan sponsors, or other
                  intermediaries. Shares purchased this way will be held for you
                  by the Shareholder Servicing Agent.

WHEN CAN I BUY SHARES?

         -        Purchases may be made on any business day. This includes any
                  day that the Funds are open for business, other than weekends,
                  days on which the New York Stock Exchange ("NYSE") is closed,
                  and the following holidays: New Year's Day, Martin Luther
                  King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
                  Independence Day, Labor Day, Columbus Day, Veterans Day,
                  Thanksgiving, and Christmas.

         -        Purchase requests will be effective on the day received by The
                  One Group Services Company and you will be eligible to receive
                  dividends declared the same day, if such purchase orders are
                  received by The One Group Services Company:

   
                  (i)      before 11:00 a.m., Eastern Time ("ET"), for the Ohio
                           Municipal Money Market Fund and the Michigan
                           Municipal Money Market Fund;
    

                  (ii)     before 12:00 noon, ET, for the Municipal Money Market
                           Fund; and

                  (ii)     before 4:00 p.m., ET, for the Prime Money Market Fund
                           and the U.S. Treasury Securities Money Market Fund.

   
         In addition, the Fund's custodian, State Street Bank and Trust Company,
         must receive "federal funds" before 4:00 p.m., ET on such day. If State
         Street Bank and Trust Company does not receive federal funds by the
         cut-off time, the purchase order will not be effective until the next
         business day on which federal funds are timely received by State Street
         Bank and Trust Company.
    

         -        On occasion, the NYSE will close before 4 p.m. ET. When that
                  happens, purchase requests received after the NYSE closes will
                  be effective the following business day.

         -        If your shares are held by a Shareholder Servicing Agent, it
                  is the responsibility of the Shareholder Servicing Agent to
                  send your purchase or redemption order to the Fund. Your
                  Shareholder Servicing Agent may have an earlier cut-off time
                  for purchase and redemption requests.

         -        The One Group Services Company can reject a purchase order if
                  it does not think that it is in the best interests of a Fund
                  and/or its shareholders to accept the order.

         -        Shares are electronically recorded. Therefore, certificates
                  will not be issued.





                                       26
<PAGE>   328

WHAT KIND OF SHARES CAN I BUY?

   
One Group offers the following classes of shares:
    

         -        Class A, Class B and Class C shares are available to the
                  general public.

         -        Class I shares are available to institutional investors and
                  any organization authorized to act in a fiduciary, advisory,
                  custodial or agency capacity. We will refer to these entities
                  as "Intermediaries."

         -        Service Class shares are available to Intermediaries
                  purchasing shares on behalf of investors requiring additional
                  administrative or accounting services such as sweep
                  processing.

         -        If you intend to hold your shares six or more years, Class B
                  shares may be appropriate for you. If you intend to hold your
                  shares for less than six years, you may want to consider Class
                  A or Class C shares.

   
One Group Fund Direct IRA. One Group offers a retirement plan. These plans allow
participants to defer taxes while their retirement savings grow. Call The One
Group Services Company at 1-800-480-4111 for an Adoption Agreement.
    

HOW MUCH DO SHARES COST?

         -        Shares are sold at net asset value ("NAV").

         -        NAV per share is calculated by dividing the total market value
                  of a Fund's investment and other assets allocable to a class
                  (minus class expenses) by the number of outstanding shares in
                  that class. The Funds use their best efforts to maintain their
                  NAV at $1.00, although there is no guarantee that they will be
                  able to do so.

   
         -        NAV is calculated each business day as of 11:00 a.m. and
                  following the close of the NYSE at 4:00 p.m., ET, for the Ohio
                  Municipal Money Market Fund and the Michigan Municipal Money
                  Market Fund; as of 12:00 noon and 4:00 p.m., ET, for the
                  Municipal Money Market Fund, and as of 2:00 p.m. and 4:00
                  p.m., ET, for the Prime Money Market Fund and the U.S.
                  Treasury Securities Money Market Fund. On occasion, the NYSE
                  will close before 4:00 p.m. ET. When that happens, NAV will be
                  calculated as of the time the NYSE closes.
    

HOW DO I OPEN AN ACCOUNT?

1. Read the prospectus carefully, and select the Fund or Funds most appropriate
for you.

   
2.       Decide how much you want to invest. The minimum initial investment is
         $1,000 ($100 for employees of BANK ONE CORPORATION and its affiliates).
         The minimum initial investment for an IRA is $250.
    

         -        Subsequent investments must be at least $100 ($25 for
                  employees of BANK ONE CORPORATION and its affiliates).

         -        The One Group Services Company may waive these minimums.

3.       Complete the Account Application Form. Be sure to sign up for all of
         the Account privileges that you plan to take advantage of. Doing so now
         means that you will not have to complete additional paperwork later.

   
4.       Send the completed application and a personal check (unless you choose
         to pay by wire or bank transfer) payable to "One Group" to:
    




                                       27
<PAGE>   329

   
        State Street Bank and Trust Company
        c/o One Group
        P.O. Box  8528
    
        Boston, MA 02266-8528

        Contributions to Fund Direct IRAs should be made payable to "State
        Street Bank and Trust Company for the Benefit of (your name)."

5.      All checks should be in U.S. dollars. Third party checks will not be
        accepted. Redemptions from a Fund will not be permitted for ten (10)
        calendar days if purchases are made by check or under the Systematic
        Investment Plan (see below).

6.      If you purchase shares through a Shareholder Servicing Agent, you may be
        required to complete additional forms or follow additional procedures.
        You should contact your Shareholder Servicing Agent regarding purchases,
        exchanges and redemptions.

7.      If you have any questions, contact your Shareholder Servicing Agent or
        call The One Group Services Company at 1-800-480-4111.

CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes. Simply select this option on your Account Application Form and then:

         -        Contact your Shareholder Servicing Agent or The One Group
                  Services Company at 1-800-480-4111 to relay your purchase
                  instructions.

   
         -        Send a personal check payable to "One Group" to State Street
                  Bank and Trust Company (see address above), authorize a bank
                  transfer or initiate a wire transfer to the following wire
                  address:
    

        State Street Bank & Trust Company
        Attn: Custody & Shareholder Services
        ABA 011 000 028
        DDA 99034167
   
        FBO One Group Fund (ex: One Group Prime Money Market Fund - A)
        Your Account Number (ex: 123456789)
        Your Account Registration (ex: John Smith & Mary Smith, JTWROS)

         -        One Group uses reasonable procedures to confirm that
                  instructions given by telephone are genuine. These procedures
                  include recording telephone instructions and asking for
                  personal identification. If these procedures are followed,
                  One Group will not be responsible for any loss, liability,
                  cost or expense of acting upon unauthorized or fraudulent
                  instructions; you bear the risk of loss.
    

         -        You may revoke your right to make purchases over the telephone
                  by sending a letter to:

   
        State Street Bank and Trust Company
        c/o One Group
        P.O. Box 8528
        Boston, MA 02266-8528
    

CAN I AUTOMATICALLY INVEST ON A SYSTEMATIC BASIS?

Yes. After your Account is established, you may purchase additional Class A,
Class B and Class C shares by making automatic monthly investments from your
bank account. The minimum initial investment is still $1,000, but minimum
automatic additions are only $25. The One Group Services Company may waive these
minimums. To establish a Systematic Investment Plan:

         -        Select the "Systematic Investment Plan" option on the Account
                  Application Form.

                                       28
<PAGE>   330

         -        Provide the necessary information about the bank account from
                  which your investments will be made.

         -        Shares purchased under a Systematic Investment Plan may not be
                  redeemed for ten (10) calendar days.

   
         -        One Group currently does not charge for this service, but may
                  impose a charge in the future. However, your bank may impose a
                  charge for debiting your bank account.
    

         -        You may revoke your right to make systematic investments by
                  calling The One Group Services Company at 1-800-480-4111 or by
                  sending a letter to:

   
        State Street Bank and Trust Company
        c/o One Group
        P.O. Box 8528
        Boston, MA 02266-8528
    

MAY I WRITE CHECKS ON MY ACCOUNT?

Class A and Class C shareholders may write checks for $250 or more.

         -        Checks may be payable to any person and your account will
                  continue to earn dividends until the check clears.

         -        Checks are free, but your bank or the payee may charge you for
                  stop payment orders, insufficient funds, or other valid
                  reasons.

         -        You can not use this option to close your account because of
                  the difficulty of determining the exact value of your account.

         -        You must wait ten (10) calendar days before you can write a
                  check against shares purchased by a check.

TO SELECT THIS OPTION:

         -        Select the "Check Writing" option on the Account Application
                  Form.

         -        Complete, sign and return a signature card and other forms
                  sent to you by State Street Bank and Trust Company. You will
                  receive a supply of checks that will be drawn on State Street
                  Bank and Trust Company.

CONVERSION FEATURE.

Your Class B shares automatically convert to Class A shares after eight years
(measured from the end of the month in which they were purchased).

         -        After conversion, your shares will be subject to the lower
                  distribution and shareholder servicing fees charged on Class A
                  shares.

         -        You will not be assessed any sales charges or fees for
                  conversion of shares, nor will you be subject to any tax.

         -        If you have exchanged Class B shares of one Fund for Class B
                  shares of another, the time you held the shares in each Fund
                  will be added together.




                                       29
<PAGE>   331

SALES CHARGES

   
The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from sales charges, 12b-1 fees and
payments by The One Group Services Company from its own resources. Occasionally,
The One Group Services Company, at its own expense, also will provide cash
incentives to select Shareholder Servicing Agents. Those Shareholder Servicing
Agents who may receive special incentives include Banc One Securities
Corporation, The Advisors Group, United Planners Financial Services of America,
Inc., The Legend Group, and Rosewood Retirement Advisory Services, LLC.
    


CLASS B SHARES.

Class B shares are offered at NAV, without any up-front sales charges. However,
if you redeem these shares within six years of the purchase date, you will be
assessed a Contingent Deferred Sales Charge ("CDSC") according to the following
schedule:

   
<TABLE>
<CAPTION>
                  CDSC AS A % OF
                   YEARS                                                               DOLLAR AMOUNT
               SINCE PURCHASE                                                        SUBJECT TO CHARGE
               --------------                                                        -----------------

<S>                                                                                     <C>
                    0-1                                                                   5.00%
                    1-2                                                                   4.00%
                    2-3                                                                   3.00%
                    3-4                                                                   3.00%
                    4-5                                                                   2.00%
                    5-6                                                                   1.00%
            more than 6                                                                   0.00%
</TABLE>
    

The One Group Services Company pays a commission of 4.00% of the original
purchase price to Shareholder Servicing Agents who sell Class B shares.

CLASS C SHARES

Class C shares are offered at NAV, without any up-front sales charge. However,
if you redeem your shares within one year of the purchase date, you will be
assessed a CDSC as follows:

<TABLE>
<CAPTION>
                                                                                    CDSC AS A % OF
                   YEARS                                                               DOLLAR AMOUNT
               SINCE PURCHASE                                                        SUBJECT TO CHARGE
               --------------                                                        -----------------

<S>         <C>                                                                           <C>  
                        0-1                                                                   1.00%
            After first year                                                                   none
</TABLE>

The One Group Services Company pays a commission of 1.00% of the original
purchase price to Shareholder Servicing Agents who sell Class C shares.

How the CDSC is Calculated

         -        The Fund assumes that all purchases made in a given month were
                  made on the first day of the month.

         -        The CDSC is based on the net amount redeemed.

         -        A sales charge is not assessed on shares acquired through
                  reinvestment of dividends or capital gains distributions.

                                       30
<PAGE>   332

         -        To keep your CDSC as low as possible, the Fund first will
                  redeem any shares in your account that carry no CDSC, starting
                  with Class A Shares. After that, the Fund will redeem the
                  shares you have held for the longest time and thus have the
                  lowest CDSC.

   
         -        If you exchange Class B or Class C shares of an unrelated
                  mutual fund for Class B or Class C shares of One Group in
                  connection with a fund reorganization, the CDSC applicable to
                  your original shares (including the period of time you have
                  held those shares) will be applied to One Group shares you
                  receive in the reorganization.
    

12B-1 FEES

   
12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to brokers and other Shareholder
Servicing Agents that sell shares of One Group.
    

         -        The 12b-1 fees vary by share class as follows:

         1.       Class A shares pay a 12b-1 fee of .25% of the average daily
                  net assets of the Fund.

         2.       Class B and Class C shares pay a 12b-1 fee of 1.00% of the
                  average daily net assets of the Fund. This will cause expenses
                  for Class B and Class C shares to be higher and dividends to
                  be lower than for Class A shares.

   
         3.       Service Class shares pay a 12b-1 fee of .75% of the average
                  daily net assets of the Fund, which is currently being waived
                  to .55% for the Prime Money Market Fund, the U.S. Treasury
                  Securities Money Market Fund, the Ohio Municipal Money Market
                  Fund, the Michigan Municipal Money Market Fund, and the
                  Municipal Money Market Fund.
    

         4.       There are no 12b-1 fees for Class I shares.

         -        12b-1 fees, together with the CDSC, help The One Group
                  Services Company sell Class B and Class C shares without an
                  "up-front" sales charge by defraying the costs of advancing
                  brokerage commissions and other expenses paid to Shareholder
                  Servicing Agents.

   
         -        The One Group Services Company may use up to .25% of the fees
                  for shareholder servicing and up to .75% for distribution.
                  During the last fiscal year, The One Group Services Company
                  received 12b-1 fees

         -        The One Group Services Company may pay 12b-1 fees to its
                  affiliates and to Banc One Investment ely. Advisors and its
                  affiliates (or any sub-advisor) for brokerage and other agency
                  transactions.
    

SALES CHARGE REDUCTIONS AND WAIVERS

WAIVER OF THE CLASS B SALES CHARGE

No sales charge is imposed on redemptions of Class B shares of the Funds:

         1.       Provided that you withdraw no more than 10% of the account
                  value annually. You do not have to participate in the
                  Systematic Withdrawal Plan to take advantage of this waiver.

         2.       If you buy the shares in connection with certain retirement
                  plans, such as 401(k) and similar qualified plans.

                                       31
<PAGE>   333

         3.       If you are the shareholder (or a joint shareholder), or a
                  participant or beneficiary of certain retirement plans and you
                  die or become disabled (as defined by the Tax Code), but only
                  if the redemption is made within one year of such death or
                  disability.

         4.       That represent a minimum required distributions from an IRA
                  Account or other qualifying retirement plan, but only if you
                  are at least age 70 1/2.

         5.       Exchanged in connection with plans of reorganizations of a
                  Fund, such as mergers, asset acquisitions and exchange offers
                  to which a Fund is a party.

   
         6.       Acquired in exchange for Class B shares of other One Group
                  Funds.
    

WAIVER OF THE CLASS C SALES CHARGE

No sales charge is imposed on redemptions of Class C shares of the Funds:

         1.       Provided that you withdraw no more than 10% of the account
                  value annually. You do not have to participate in the
                  Systematic Withdrawal Plan to take advantage of this waiver.

         2.       If you buy the shares in connection with certain retirement
                  plans, such as 401(k) and similar qualified plans.

         3.       If you are the shareholder (or a joint shareholder), or a
                  participant or beneficiary of certain retirement plans and you
                  die or become disabled (as defined by the Tax Code), but only
                  if the redemption is made within one year of such death or
                  disability.

         4.       That represent a minimum required distributions from an IRA
                  Account or other qualifying retirement plan, but only if you
                  are at least age 70 1/2.

         5.       Exchanged in connection with plans of reorganizations of a
                  Fund, such as mergers, asset acquisitions and exchange offers
                  to which a Fund is a party.

   
         6.       Acquired in exchange for Class C shares of other One Group
                  Funds.
    

         7.       If The One Group Services Company receives notice before you
                  invest indicating that your Shareholder Servicing Agent, due
                  to the type of account that you have, is waiving its
                  commission.

To take advantage of any of these sales charge waivers, you must qualify for
such waiver in advance. To see if you qualify, contact The One Group Services
Company at 1-800-480-4111 or your Shareholder Servicing Agent.

EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

You may make the following exchanges:

   
         -        Class I shares of a Fund may be exchanged for Class A shares
                  of that Fund or for Class A or Class I shares of another One
                  Group Fund.

         -        Class A shares of a Fund may be exchanged for Class I shares
                  of that Fund or for Class A or Class I shares of another One
                  Group Fund, but only if you are eligible to purchase those
                  shares.

         -        Class B shares of a Fund may be exchanged for Class B shares
                  of another One Group Fund.

         -        Class C shares of a Fund may be exchanged for Class C shares
                  of another One Group Fund.
    

                                       32
<PAGE>   334

         -        Service Class shares do not have exchange privileges.

   
One Group offers a Systematic Exchange Privilege which allows you to
automatically exchange shares of one fund to another on a monthly or quarterly
basis. This privilege is useful in Dollar Cost Averaging. To participate in this
privilege, please select it on your account application. To learn more about it,
please call The One Group Services Company at 1-800-480-4111.

One Group may change the terms and conditions of your exchange privileges upon
60 days written notice. One Group does not charge a fee for this privilege.
    

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

         -        State Street Bank and Trust Company receives the request by:

   
         (i)      11:00 a.m. ET, for the Ohio Municipal Money Market Fund and
                  the Michigan Municipal Money Market Fund,
    

         (ii)     12:00 noon ET, for the Municipal Money Market Fund, and

         (iii)    2:00 p.m. ET, for the Prime Money Market Fund and the U.S.
                  Treasury Securities Money Market Fund.

   
         -        You have provided One Group with all of the information
                  necessary to process the exchange.
    

         -        You have received a current prospectus of the Fund or Funds
                  into which you wish to invest.

         -        You have contacted your Shareholder Servicing Agent, if
                  necessary.

DO I PAY A SALES CHARGE ON AN EXCHANGE?

Generally, you will not pay a sales charge on an exchange. However:

         -        You will pay a sales charge if you own Class I shares of a
                  Fund and you want to exchange those shares for Class A shares,
                  unless you qualify for a sales charge waiver (see above).

         -        You will pay a sales charge if you bought Class A shares of a
                  Fund:

         1.       That does not charge a sales charge and you want to exchange
                  them for shares of a Fund that does, in which case you would
                  pay the sales charge applicable to the Fund into which you are
                  exchanging.

         2.       That charged a lower sales charge than the Fund into which you
                  are exchanging, in which case you would pay the difference
                  between that Fund's sales charge and all other sales charges
                  you have already paid.

         -        If you exchange Class B or Class C shares of a Fund, you will
                  not pay a sales charge at the time of the exchange, however:

         1.       Your new Class B or Class C shares will be subject to the
                  higher CDSC of either the Fund from which you exchanged, the
                  Fund into which you exchanged, or any Fund from which you
                  previously exchanged.

         2.       The current holding period for your exchanged Class B or Class
                  C shares is carried over to your new shares.

ARE EXCHANGES TAXABLE?

Generally:

                                       33
<PAGE>   335

         -        An exchange between classes of shares of the same Fund is not
                  taxable for Federal income tax purposes.

         -        An exchange between Funds is considered a sale and generally
                  results in a capital gain or loss for Federal income tax
                  purposes.

         -        You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short-term movements in the market. Therefore:

   
         -        To prevent disruptions in the management of the Funds, One
                  Group limits excessive exchange activity.
    

         -        Exchange activity is excessive if it EXCEEDS TWO SUBSTANTIVE
                  EXCHANGE REDEMPTIONS (WITHIN 30 DAYS OF EACH OTHER) WITHIN A
                  TWELVE MONTH PERIOD.

   
         -        In addition, One Group reserves the right to reject any
                  exchange request (even those that are not excessive) if the
                  Fund reasonably believes that the exchange will result in
                  excessive transaction costs or otherwise adversely affect
                  other shareholders.
    

                              REDEEMING FUND SHARES

WHEN CAN I REDEEM SHARES?

         -        You may redeem all or some of your shares on any day that the
                  Funds are open for business.

         -        Redemption requests received by The One Group Services Company
                  before 4:00 p.m. ET (or when the NYSE closes), will be
                  effective that day.

HOW DO I REDEEM SHARES?

         -        Unless you have selected the telephone option on your Account
                  Application Form, you must send a written redemption request
                  to your Shareholder Servicing Agent, if applicable, or to
                  State Street Bank and Trust Company at the following address:

   
         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528
    

         -        All requests for redemptions from IRA accounts must be in
                  writing.

         -        You may request redemption forms by calling The One Group
                  Services Company at 1-800-480-4111.

         -        State Street Bank and Trust Company may require that the
                  signature on your redemption request be guaranteed by a
                  commercial bank, a member of a domestic stock exchange, or a
                  member of the Securities Transfer Association Medallion
                  Program or the Stock Exchange Medallion Program, unless:

         1.       the redemption is for $50,000 worth of shares or less;

         2.       the redemption is payable to the shareholder of record;

         3.       the redemption check is mailed to the shareholder at the
                  record address; or

                                       34
<PAGE>   336

         4.       the redemption is payable by wire or bank transfer (ACH) to a
                  pre-existing bank account.

         -        On the Account Application Form you may elect to have the
                  redemption proceeds mailed or wired to:

         1.       a designated commercial bank; or

         2.       State Street Bank and Trust Company or your Shareholder
                  Servicing Agent.

         -        State Street Bank and Trust Company may charge you a wire
                  redemption fee. The current charge is $7.00.

   
         -        Your redemption proceeds will ordinarily be paid the next
                  business day after receipt of the redemption request. However,
                  the Funds will attempt to honor requests for same day payment
                  on redemptions, if the request is received before:
    

   
                 (i)   11:00 a.m. ET, for the Ohio Municipal Money Market Fund 
                       and the Michigan Municipal Money Market Fund,

                 (ii)  12:00 noon ET, for the Municipal Money Market Fund, and

                 (iii) 2:00 p.m. ET, for the Prime Money Market Fund and the 
                       U.S. Treasury Securities Money Market Fund.
    

         -        The Funds also will attempt to honor requests for payments in
                  two business days, if the redemption request is received after
                  the times listed above.

WHAT WILL MY SHARES BE WORTH?

   
         -        The NAV of shares of the Funds is expected to remain constant
                  at $1.00 per share, although there is no assurance that this
                  will always be the case.
    

         -        If you own Class A, Service Class or Class I shares, you will
                  receive the NAV calculated after your redemption request is
                  received. Please read "How Much Do Shares Cost?"

         -        If you own Class B or Class C shares, you will receive the NAV
                  calculated after your redemption request is received, minus
                  the amount of any applicable CDSC.

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.

         -        Call your Shareholder Servicing Agent or State Street Bank and
                  Trust Company at 1-800-480-4111 to relay your redemption
                  request.

         -        Your redemption proceeds will be mailed or wired to the
                  commercial bank account you designated on your Account
                  Application Form.

         -        State Street Bank and Trust Company may charge you a wire
                  redemption fee. The current charge is $7.00.

   
         -        One Group uses reasonable procedures to confirm that
                  instructions given by telephone are genuine. These procedures
                  include recording telephone instructions and asking for
                  personal identification. If these procedures are followed,
                  One Group will not be responsible for any loss, liability,
                  cost or expense of acting upon unauthorized or fraudulent
                  instructions; you bear the risk of loss.
    

                                       35
<PAGE>   337

         -        REDEMPTIONS FROM YOUR IRA ACCOUNT MAY NOT BE MADE BY
                  TELEPHONE.

CAN I REDEEM ON A SYSTEMATIC BASIS?

If you have an account value of at least $10,000 you may elect to receive
monthly, quarterly or annual payments of not less than $100 each.

         -        Select the "Systematic Withdrawal Plan" option on the Account
                  Application Form.

         -        Specify the amount you wish to receive and the frequency of
                  the payments.

         -        You may designate a person other than yourself as the payee.

         -        There is no charge for this service.

         -        If you select this option, please keep in mind that:

         1. If you own Class B or Class C shares, you or your designated payee
            may receive systematic payments provided the payments are limited to
            no more than 10% of your account value annually, measured from the
            date the redemption request is received.

         2. If you are age 70 1/2, you may elect to receive payments to the
            extent that the payment represents a minimum required distribution
            from an IRA or other qualifying retirement plan. You also may elect
            to receive payments of less than $100 each.

         3. If the amount of the systematic payment exceeds the income earned by
            your account since the previous payment under the Systematic
            Withdrawal Plan, payments will be made by redeeming some of your
            shares. This will reduce the amount of your investment.

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

         -        All redemptions will be for cash. The redemption price of
                  shares is expected to remain constant at $1.00 per share,
                  although there is no assurance that this will always be the
                  case.

   
         -        If you redeem shares for which you paid by check, and One
                  Group has not yet received payment on the check, One Group
                  will delay forwarding your redemption proceeds for 10 or more
                  days until payment has been collected from your bank.

         -        Because of the high cost of handling small investments, One
                  Group charges a sub-minimum account fee. Accounts under $1,000
                  that are not participating in a Systematic Investment Plan
                  will be assessed an annual fee of $10.00. The sub-minimum
                  account fee will not apply to IRA accounts and the accounts of
                  employees of BANK ONE CORPORATION and its affiliates.

         -        One Group may suspend your ability to redeem when: 1) Trading
                  on the NYSE is restricted; 2) the NYSE is closed (other than
                  weekend and holiday closings); 3) the SEC has permitted a
                  suspension; or 4) an emergency exists. The Statement of
                  Additional Information offers more details about this process.
    

         -        You generally will recognize a gain or loss on a redemption
                  for Federal income tax purposes. You should talk to your tax
                  advisor before making a redemption.





                                       36
<PAGE>   338

                             SHAREHOLDER INFORMATION

VOTING RIGHTS

The Funds do not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change a Fund's fundamental investment objective, or approve an
investment advisory contract.

As a Fund shareholder, you have one vote for each share that you own. Each Fund,
and each class of shares within each Fund, vote separately on matters relating
solely to that Fund or class, or which affect that Fund or class differently.
However, all shareholders will have equal voting rights on matters that affect
all shareholders equally.

   
BANK ONE CORPORATION (One First National Plaza, Chicago, Illinois 60670),
through its affiliates, may be deemed for purposes of The Investment Company Act
of 1940, to control the Prime Money Market and the Municipal Money Market Funds.
This is because as of December 1, 1998, BANK ONE CORPORATION or its affiliates
possessed the power to vote substantially all of the Class I shares of the
Funds. On the same date, the following shareholders owned 25% or more of Class A
and Class B shares of the Funds. As a consequence, they are considered to be
controlling persons of those classes of the Funds.
    

   
<TABLE>
<CAPTION>
NAME AND                                                                       PERCENTAGE OF       TYPE OF
- --------                                                                       -------------       -------
ADDRESS                                            FUND/CLASS                  OWNERSHIP           OWNERSHIP
- -------                                            ----------                  ---------           ---------

<S>                                                <C>                         <C>                 <C>    
                                                   Prime Money Market Fund     57.58%              Record
Dean Witter FBO                                    Class A
Banc One Securities
PO Box 250
Church Street Station
New York, NY 10013-0250

BISYS Fund Services Inc                            Prime Money Market Fund     30.84%              Record
Fbo Bank One Corporate Sweep                       Class A
3435 STELZER ROAD SUITE 1000
Columbus OH 43219-6004

Strafe & Co                                        Prime Money Market Fund     91.10%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Dean Witter For the Benefit Of                     US Treasury Securities      50.63%              Record
Martin Homes Inc Prof Shar Pln                     Money Market Fund
PO Box 250 Church Street Station                   Class C
New York, NY 10008-0250
</TABLE>
    




                                       37
<PAGE>   339

   
<TABLE>
<S>                                                <C>                         <C>                 <C>    
Strafe & Co (N)                                    US Treasury Securities      86.00%              Record
BOIA - One Group Operations                        Money Market Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Dean Witter FBO                                    Municipal Money Market      44.38%              Record
Banc One Securities                                Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

Strafe & Co                                        Municipal Money Market      95.68%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

Dean Witter FBO                                    Ohio Municipal Money        99.10%              Record
Banc One Securities                                Market Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

Strafe & Co.
BOIA - One Group Operations                        Ohio Municipal Money        95.04%              Record
1111 Polaris Parkway                               Market Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211
</TABLE>
    

                                DIVIDEND POLICIES

DIVIDENDS

The Funds generally declare dividends on each business day. Dividends are
distributed on the first business day of each month. Capital gains, if any, for
all Funds are distributed at least annually.

Dividends payable on Class I shares will be more than those payable on other
classes of shares. This is because Class A, Class B, Class C and Service Class
shares have higher distribution expenses.

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund and class, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.



                                       38
<PAGE>   340

SPECIAL DIVIDEND RULES FOR CLASS B SHARES

Class B shares received as dividends and capital gains distributions will be
accounted for separately. Each time any Class B shares (other than those in the
sub-account) convert to Class A shares, a percentage of the Class B shares in
the sub-account will also convert to Class A shares. (See "Conversion Feature.")




                                       39
<PAGE>   341

TAX TREATMENT OF THE FUNDS
TAX STATUS OF THE FUND

Each Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Funds qualify, as they have in the past, they will
pay no federal income tax on the earnings they distribute to shareholders.

                          TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of Fund shares will generally produce either a
taxable gain or a loss. You are responsible for any tax liabilities generated by
your transactions.

   
TAXATION OF DISTRIBUTIONS -- PRIME MONEY MARKET FUND AND U.S. TREASURY
SECURITIES MONEY MARKET FUND
    

Each Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gain) to investors on at
least an annual basis. Dividends you receive from a Fund, whether reinvested or
received in cash, will be taxable to you. Dividends from a Fund's net investment
income will be taxable as ordinary income and dividends from a Fund's long-term
capital gains will be taxable to you as such, regardless of how long you have
held the shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

   
TAXATION OF DIVIDENDS -- OHIO MUNICIPAL MONEY MARKET FUND, MICHIGAN MUNICIPAL
MONEY MARKET FUND AND MUNICIPAL MONEY MARKET FUND
    

Each Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gain) to investors on at
least an annual basis. These Funds may pay "exempt-interest dividends" if at
least 50% of the value of Fund assets at the end of each quarter of the Fund's
taxable year consists of obligations the interest on which is excludable from
gross income. Exempt-interest dividends are generally excludable from an
investor's gross income for regular Federal income tax purposes. However, the
receipt of exempt-interest dividends may cause recipients of Social Security or
Railroad Retirement benefits to be taxed on a portion of such benefits. In
addition, the receipt of exempt-interest dividends may result in liability for
Federal alternative minimum tax and for state and local taxes, both for
individuals and corporate shareholders. Corporate shareholders will be required
to take the interest on municipal securities into account in determining their
alternative minimum taxable income.

   
OHIO TAXATION OF DIVIDENDS  - OHIO MUNICIPAL MONEY MARKET FUND
    

Dividends received from the Ohio Municipal Money Market Fund that result from
interest on Ohio municipal securities are exempt from the Ohio personal income
tax. Some Ohio statutes provide that interest on and gain from the sale of Ohio
municipal securities is exempt from all taxation in Ohio. Dividends that are
attributable to interest on or gain from the sale of certain obligations issued
under such statutes should be exempt from Ohio personal income tax. Ohio
municipalities may not impose income taxes on dividends on any intangible
property (including such property of the Fund) unless the intangible income was
not exempt from municipal income taxation before April 2, 1986 and the tax was
approved in an election held on November 8, 1988. Corporate shareholders will be
required to include the interest on Ohio municipal securities in their
alternative minimum-taxable income. In addition, corporate shareholders must
include the Fund shares in the corporation's tax base for purposes of the Ohio
franchise tax net worth computation, but not for the net income tax computation.
Information in this paragraph is based on current statutes and regulations as
well as current policies of the Ohio Department of Taxation, all of which may
change.



   
MICHIGAN TAXATION OF DIVIDENDS - MICHIGAN MUNICIPAL MONEY MARKET FUND

Dividends paid by the Michigan Municipal Money Market Fund that are derived from
interest attributable to tax-exempt Michigan Municipal Obligations will be
exempt from Michigan income tax, Michigan intangibles tax and Michigan single
business tax. Conversely, to the extent that the Fund's dividends are derived
from interest on obligations other than Michigan Municipal Obligations or
certain U.S. Government Obligations (or are derived from short term or long term
gains), such dividends will be subject to Michigan income tax, Michigan
intangibles tax and Michigan single business tax, even though the dividends may
be exempt for Federal income tax purposes.
    

                                       40
<PAGE>   342

   
Except as noted above with respect to Michigan income taxation, distributions of
net income may be taxable to investors as dividend income under other state or
local laws even though a substantial portion of such distributions may be
derived from interest on tax-exempt obligations which, if realized directly,
would be exempt from such income taxes.
    

TAXATION OF RETIREMENT PLANS

Distributions by the Funds to qualified retirement plans will not be taxable.
However, if shares are held by a plan that ceases to qualify for tax-exempt
treatment or by an individual who has received shares as a distribution from a
retirement plan, the distributions will be taxable to the plan or individual as
described in "Taxation of Distributions." If you are considering purchasing
shares with qualified retirement plan assets, you should consult your tax
advisor for a more complete explanation of the Federal, state, local and (if
applicable) foreign tax consequences of making such an investment.

TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Funds provide you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Funds or their shareholders.

SHAREHOLDER INQUIRIES

If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.

REPORTING

   
In September and March you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.
    




                                       41
<PAGE>   343

                    ORGANIZATION AND MANAGEMENT OF THE FUNDS

THE FUNDS

   
Each Fund is a series of One Group, an open-end management investment company.
One Group currently offers of 49 separate Funds. Five of the Funds are described
in this prospectus; the other Funds are described in separate prospectuses. Each
Fund is supervised by the Board of Trustees.
    

THE BOARD OF TRUSTEES

   
The Trustees oversee the management and administration of the Funds. The
Trustees are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Funds
to the officers of One Group.
    

THE ADVISOR

   
Banc One Investment Advisors makes the day-to-day investment decisions for the
Funds and continuously reviews, supervises and administers the Funds' investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets.
    

For the fiscal year ended June 30, 1998, the Funds paid investment advisory fees
at the following rate:

   
<TABLE>
<CAPTION>
                                                                                        ANNUAL RATE
                                                                                       AS PERCENTAGE
                                                                                      OF AVERAGE DAILY
       FUND                                                                               NET ASSETS
       ----                                                                               ----------

<S>                                                                                       <C> 
     One Group(R) Prime Money Market Fund                                                 .30%
     One Group(R) Municipal Money Market Fund                                             .25%
     One Group(R) Ohio Municipal Money Market Fund                                        .24%
     One Group(R) U.S. Treasury Securities Money Market Fund                              .28%
     One Group(R) Michigan Municipal Money Market Fund                                    .__%*
</TABLE>

* The predecessor of this Fund had a December 31 year end. The advisory fees
  shown are as of December 31, 1998.

    

THE DISTRIBUTOR

The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Funds and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.

THE ADMINISTRATOR AND SUB-ADMINISTRATOR

   
The One Group Services Company also serves as the Funds' administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory compliance and
reporting. For these services, The One Group Services Company receives a fee
based on the total assets of One Group. For the first $1.5 billion in One Group
assets, The One Group Services Company receives an annual fee of .20% of each
Fund's average daily net assets. The annual rate declines to .18% on assets up
to $2 billion, and to .16% when assets exceed $2 billion. The fee is calculated
daily and paid monthly. Some Funds are not included in the calculations. Banc
One Investment Advisors, the Sub-Administrator, provides office space,
equipment, and facilities, as well as legal and regulatory support.
    

THE TRANSFER AGENT, CUSTODIAN AND THE SUB-CUSTODIAN

State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528 or
your Shareholder Servicing Agent, if appropriate, handles shareholder record
keeping and statements, distributes dividends, and processes buy and sell
requests. As the Funds' custodian, State Street holds the Funds' assets, settles
all portfolio trades and assists in calculating the Funds' net asset values.
Bank One Trust Company, N.A. serves as sub-custodian in connection with the
Funds' securities lending 


                                       42
<PAGE>   344

activities under an agreement with State Street Bank and Trust Company. Bank One
Trust Company, N.A. is paid a fee for this service.


YEAR 2000

   
Preparing for the Year 2000 is a high priority for One Group. Both One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
One Group. Year 2000 remediation efforts are directed toward both information
technology and non-information technology systems. Non-information technology
systems include elevators, photocopy machines, and facsimile machines, and
should have no significant impact on the delivery of services to One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.

Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.

Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipate that the move to Year 2000 will have a material impact on
their ability to continue to provide the Funds with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.
    






                                       43
<PAGE>   345

           DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The Funds invest in a variety of securities and employ a number of investment
techniques. Each security and technique involves certain risks. What follows is
a list of the securities and techniques utilized by the Funds, as well as the
risks inherent in their use. Fixed income securities are primarily influenced by
market, credit and prepayment risks, although certain securities may be subject
to additional risks. For a more complete discussion, see the Statement of
Additional Information. Following the table is a more complete discussion of
risk.

<TABLE>
<CAPTION>
                                     FUND                                                                FUND CODE
                                     ----                                                                ---------

   
<S>                                                                                                           <C>
                   One Group(R)Prime Money Market Fund                                                        1
                   One Group(R)Municipal Money Market Fund                                                    2
                   One Group(R)Ohio Municipal Money Market Fund                                               3
                   One Group(R)U.S. Treasury Securities Money Market Fund                                     4
                   One Group(R)Michigan Municipal Money Market Fund                                           5
    

<CAPTION>
INSTRUMENT                                                                              FUND CODE         RISK TYPE
- ----------                                                                              ---------         ---------

   
<S>                                                                                     <C>               <C>      
U.S. Treasury Obligations: Bills, notes, bonds, STRIPS, and                             1-5               Market
CUBES. The U.S. Treasury Securities Money Market Fund does not
buy STRIPS and CUBES.

Treasury Receipts: TRs, TIGRS, and CATS.                                                1-3,5             Market

U.S. Government Agency Securities: Securities issued by agencies                        1-3,5             Market
and instrumentalities of the U.S. Government. These include                                               Credit
Ginnie Mae, Fannie Mae, and Freddie Mac.

Certificates of Deposit: Negotiable instruments with a stated                           1-3,5             Market
maturity.                                                                                                 Credit
                                                                                                          Liquidity

Time Deposits: Non-negotiable receipts issued by a bank in                              1-3,5             Liquidity
exchange for the deposit of funds.                                                                        Credit
    
                                                                                                          Market

Repurchase Agreements: The purchase of a security and the                               1-5               Credit
simultaneous commitment to return the security to the seller at                                           Market
an agreed upon price on an agreed upon date. This is treated as                                           Liquidity
a loan.

Reverse Repurchase Agreement: The sale of a security and the                            1-5               Market
simultaneous commitment to buy the security back at an agreed                                             Leverage
upon price on an agreed upon date. This is treated as a
borrowing by a Fund.

   
Securities Lending: The lending of up to 33 1/3% of the securities                      1-5               Credit
owned by a Fund. In return the Fund will receive cash,                                                    Market
other securities and/or letters of credit as collateral.                                                  Leverage

When-Issued Securities and Forward Commitments: Purchase or                             1-5               Market
contract to purchase securities at a fixed price for delivery at                                          Leverage
a future date.                                                                                            Liquidity
                                                                                                          Credit

Investment Company Securities: Shares of other mutual funds,                            1-3,5             Market
including One Group money market funds and shares of other
investment companies for which Banc One Investment Advisors
serves as investment advisor or administrator. Banc One
Investment Advisors will waive certain fees when investing in
funds for which it serves as investment advisor.
</TABLE>
    




                               44
<PAGE>   346

<TABLE>
   
<CAPTION>
INSTRUMENT                                                                              FUND CODE         RISK TYPE
- ----------                                                                              ---------         ---------

<S>                                                                                     <C>               <C>      
Extendable Commercial Notes: Variable rate notes which normally                         1-3,5             Market
mature within a short period of time (e.g., 1 month) but which                                            Credit
may be extended by the issuer for a maximum maturity of thirteen                                          Liquidity
months.

Bankers' Acceptances: Bills of exchange or time drafts drawn on                         1-3,5             Credit
and accepted by a commercial bank. Maturities are generally six                                           Liquidity
months or less.                                                                                           Market

Commercial Paper: Secured and unsecured short-term promissory                           1-3,5             Credit
notes issued by corporations and other entities. Maturities                                               Liquidity
generally vary from a few days to nine months.                                                            Market

Foreign Securities: Commercial paper of foreign issuers and                             1-3,5             Market
obligations of foreign banks, overseas branches of U.S. banks                                             Political
and supranational entities.                                                                               Liquidity
                                                                                                          Foreign
                                                                                                          Investment

Restricted Securities: Securities not registered under the                              1-3,5             Liquidity
Securities Act of 1933, such as privately placed commercial                                               Market
paper and Rule 144A securities.

Variable and Floating Rate Instruments: Obligations with                                1-3,5             Market
interest rates which are reset daily, weekly, quarterly or some                                           Credit
other period and which may be payable to the Fund on demand.                                              Liquidity

Mortgage-Backed Securities: Debt obligations secured by real                            1-3,5             Pre-payment
estate loans and pools of loans. These include collateralized                                             Market
mortgage obligations ("CMOs") and Real Estate Mortgage                                                    Credit
Investment Conduits ("REMICs").                                                                           Regulatory

Demand Features: Securities that are subject to puts and standby                        1-3,5             Market
commitments to purchase the securities at a fixed price (usually                                          Liquidity
with accrued interest) within a fixed period of time following                                            Management
demand by a Fund.                                                                                       

Municipal Securities: Securities issued by a state or political                         2,3,5             Market
subdivision to obtain funds for various public purposes.                                                  Credit
Municipal securities include private activity bonds and                                                   Political
industrial development bonds, as well as General Obligation                                               Tax
Notes, Tax Anticipation Notes, Bond Anticipation Notes, Revenue                                           Regulatory
Anticipation Notes, other short-term tax-exempt obligations,
municipal leases, and obligations of municipal housing
authorities and single family revenue bonds.

Short-Term Funding Agreements: Agreements issued by banks and                           1                 Market
highly rated insurance companies such as Guaranteed Investment                                            Credit
Contracts ("GICs") and Bank Investment Contracts ("BICs").                                                Liquidity

Participation Interests: Interests in municipal securities,                             1-3,5             Credit
including municipal leases, from financial institutions such as                                           Tax
commercial and investment banks, savings and loan associations                                            Market
and insurance companies. These interests may take the form of
participations, beneficial interests in a trust, partnership
interests or any other form of indirect ownership that allows the
Funds to treat the income from the investment as exempt from
Federal Income Tax.

Asset-Backed Securities: Securities secured by company                                  1,3,5             Pre-payment
receivables, home equity loans, truck and auto loans, leases,                                             Market
credit card receivables and other securities backed by other                                              Credit
types of receivables or other assets.                                                                     Regulatory
</TABLE>
    





                                       45
<PAGE>   347

                                INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities held by the Funds may fluctuate, as will the value of
your investment in the Funds. Certain investments are more susceptible to these
risks than others.

   
         -        Credit Risk. The risk that the issuer of a security, or the
                  counterparty to a contract, will default or otherwise become
                  unable to honor a financial obligation. Credit risk is
                  generally higher for non-investment grade securities. The
                  price and liquidity of a security can be adversely affected
                  prior to actual default as its credit status deteriorates and
                  the probability of default rises.
    

         -        Leverage Risk. The risk associated with securities or
                  practices (such as borrowing) that multiply small index or
                  market movements into large changes in value.

         -        Liquidity Risk. The risk that certain securities may be
                  difficult or impossible to sell at the time and the price that
                  normally prevails in the market. The seller may have to lower
                  the price, sell other securities instead or forego an
                  investment opportunity, any of which could have a negative
                  effect on fund management or performance. This includes the
                  risk of missing out on an investment opportunity because the
                  assets necessary to take advantage of it are tied up in less
                  advantageous investments.

         -        Management Risk. The risk that a strategy used by a fund's
                  management may fail to produce the intended result. This
                  includes the risk that changes in the value of a hedging
                  instrument will not match those of the asset being hedged.
                  Incomplete matching can result in unanticipated risks.

         -        Market Risk. The risk that the market value of a security may
                  move up and down, sometimes rapidly and unpredictably. These
                  fluctuations may cause a security to be worth less than the
                  price originally paid for it, or less than it was worth at an
                  earlier time. Market risk may affect a single issuer,
                  industry, sector of the economy or the market as a whole. For
                  fixed income securities, market risk is largely, but not
                  exclusively, influenced by changes in interest rates. A rise
                  in interest rates typically causes a fall in values, while a
                  fall in rates typically causes a rise in values. Finally, key
                  information about a security or market may be inaccurate or
                  unavailable. This is particularly relevant to investments in
                  foreign securities.

         -        Political Risk. The risk of losses attributable to unfavorable
                  governmental or political actions, seizure of foreign
                  deposits, changes in tax or trade statutes, and governmental
                  collapse and war.

         -        Foreign Investment Risk. Risks associated with higher
                  transaction costs, delayed settlements, currency controls, and
                  adverse economic developments. This also includes the risk
                  that fluctuations in the exchange rates between the U.S.
                  dollar and foreign currencies may negatively affect an
                  investment. Adverse changes in exchange rates may erode or
                  reverse any gains produced by foreign currency denominated
                  investments and may widen any losses. Exchange rate volatility
                  also may affect the ability of an issuer to repay U.S. dollar
                  denominated debt, thereby increasing credit risk.

         -        Pre-Payment Risk. The risk that the principal repayment of a
                  security will occur at an unexpected time, especially that the
                  repayment of a mortgage or asset-backed security occurs either
                  significantly sooner or later than expected. Changes in
                  pre-payment rates can result in greater price and yield
                  volatility. Pre-payments generally accelerate when interest
                  rates decline. When mortgage and other obligations are
                  pre-paid, a Fund may have to reinvest in securities with a
                  lower yield. Further, with early repayment, a Fund may fail to
                  recoup any premium paid, resulting in an unexpected capital
                  loss.

         -        Tax Risk. The risk that the issuer of the securities will fail
                  to comply with certain requirements of the Internal Revenue
                  Code, which would cause adverse tax consequences.

                                       46
<PAGE>   348

         -        Regulatory Risk. The risk associated with Federal and state
                  laws which may restrict the remedies that a lender has when a
                  borrower defaults on loans. These laws include restrictions on
                  foreclosures, redemption rights after foreclosure, Federal and
                  state bankruptcy and debtor relief laws, restrictions on "due
                  on sale" clauses, and state usury laws.



                               INVESTMENT POLICIES

Each Fund's investment objective and the following investment policies
summarized below are fundamental. This means that they cannot be changed without
the consent of a majority of the outstanding shares of the Funds. In addition to
the fundamental policies mentioned earlier, the following fundamental policies
apply to each Fund as specified. The full text of the fundamental policies can
be found in the Statement of Additional Information.

FUNDAMENTAL POLICIES OF EACH FUND

Each Fund:

1.       Will use its best efforts to maintain a constant net asset value of
         $1.00 per share, although there is no guarantee that the Funds will be
         able to do so.

2.       Will not make loans, except that a Fund may (i) purchase or hold debt
         instruments in accordance with its investment objective and policies;
         (ii) enter into repurchase agreements; and (iii) engage in securities
         lending.

FUNDAMENTAL POLICIES OF SPECIFIC FUNDS

The Prime Money Market Fund:

1.       Will not concentrate its investments in the securities of one or more
         issuers conducting their principal business in a particular industry or
         group of industries. This does not include obligations issued or
         guaranteed by the U.S. government or its agencies and
         instrumentalities, domestic bank certificates of deposit or bankers'
         acceptances, and repurchase agreements involving such securities,
         municipal securities or governmental guarantees of municipal
         securities. In addition, private activity bonds backed only by the
         revenues and assets of a non-governmental user will not be deemed to be
         municipal securities.

The Prime Money Market Fund, the Municipal Money Market Fund and the U.S.
Treasury Securities Money Market Fund:

1.       Will not purchase an issuer's securities if as a result more than 5% of
         a Fund's total assets would be invested in the securities of that
         issuer or the Fund would own more than 10% of the outstanding voting
         securities of that issuer. This does not include securities issued or
         guaranteed by the United States, its agencies or instrumentalities, and
         repurchase agreements involving these securities. This restriction
         applies with respect to 75% of a Fund's total assets. The Funds may
         invest the remaining 25% of their total assets without restriction.

The U.S. Treasury Securities Money Market Fund:

1.       Will invest only in U.S. Treasury obligations and repurchase agreements
         collateralized by such obligations.

   
The Ohio Municipal Money Market Fund and The Michigan Municipal Money Market
Fund:
    

1.       Will not purchase an issuer's securities if as a result more than 25%
         of its total assets would be invested in the securities of that issuer
         or the Fund would own more than 10% of the outstanding voting
         securities of that issuer. This does not include securities issued or
         guaranteed by the United States, its agencies or instrumentalities,
         securities of registered investment companies, and repurchase
         agreements involving these securities. This restriction applies with
         respect to 50% of the Fund's total assets. With respect to the
         remaining 50% of its total assets, the Fund will not purchase an
         issuer's securities if as a result more than 5% of its total assets
         would be invested in the securities of that issuer.



                                       47
<PAGE>   349

   
The Ohio Municipal Money Market Fund:

1.       Will not concentrate its investments in the securities of one or more
         issuers conducting their principal business in a particular industry or
         group of industries. This does not include municipal securities or
         governmental guarantees of municipal securities. In addition, private
         activity bonds backed only by the assets and revenues of a
         non-governmental user will not be deemed to be Ohio municipal
         securities.

The Michigan Municipal Money Market Fund:

1.       Will not concentrate its investments in the securities of one or more
         issuers conducting their principal business in a particular industry or
         group of industries. This does not include municipal securities or
         governmental guarantees of municipal securities.
    


The Municipal Money Market Fund:

1.       Will not concentrate its investments in the securities of one or more
         issuers conducting their principal business in a particular industry or
         group of industries. This does not include municipal securities or
         governmental guarantees of municipal securities. In addition, private
         activity bonds backed only by the revenues and assets of a
         non-governmental user will not be deemed to be municipal securities.

Additional investment policies can be found in the Statement of Additional
Information.

TEMPORARY DEFENSIVE POSITION

   
Sometimes the Ohio Municipal Money Market Fund, the Michigan Municipal Money
Market Fund, and the Municipal Money Market Fund may temporarily invest up to
100% of their total assets in securities that are not municipal securities, such
as taxable money market instruments (including repurchase agreements) and may
hold uninvested cash pending investment. While the Funds are engaged in a
temporary defensive position, they will not be pursuing their investment
objectives. Therefore, the Funds will pursue a temporary defensive position only
when market conditions warrant.
    




                                       48
<PAGE>   350

                                    APPENDIX

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors determines that such securities are the equivalent
of investment grade securities. Securities that have received different ratings
from more than one agency are considered investment grade if at least one agency
has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

         D-1+     Highest certainty of timely payment. Short-term liquidity,
                  including internal operating factors and/or access to
                  alternative sources of funds, is outstanding and safety is
                  just below risk-free U.S. Treasury obligations.

         D-1      Very high certainty of timely payment. Liquidity factors are
                  excellent and supported by good fundamental protection
                  factors. Risk factors are minor.

         D-1-     High certainty of timely payment. Liquidity factors are strong
                  and supported by good fundamental protection factors. Risk
                  factors are very small.

STANDARD & POOR'S CORPORATION ("S&P")

         A-1      Highest category of commercial paper. Capacity to meet
                  financial commitment is strong. Obligations designated with a
                  plus sign (+) indicate that capacity to meet financial
                  commitment is extremely strong.

         A-2      Issues somewhat more susceptible to adverse effects of changes
                  in circumstances and economic conditions than obligations in
                  higher rating categories. However, the capacity to meet
                  financial commitments is satisfactory.

FITCH IBCA, INC. ("FITCH")

   
         F1       Highest capacity for timely repayment. Those issues rated F1+
                  possess a particularly strong credit feature.
    

         F2       Satisfactory capacity for timely repayment although such
                  capacity may be susceptible to adverse changes in business,
                  economic or financial conditions.

MOODY'S INVESTORS SERVICE ("MOODY'S")

         PRIME-1  Superior ability for repayment.
 
         PRIME-2  Strong ability for repayment.

DESCRIPTION OF BANK RATINGS

MOODY'S

These ratings represent Moody's opinion of a bank's intrinsic safety and
soundness.

         A        These banks possess exceptional intrinsic financial strength.
                  Typically they will be major financial institutions with
                  highly valuable and defensible business franchises, strong
                  financial fundamentals, and a very attractive and stable
                  operating environment.



                                       49
<PAGE>   351

         B        These banks possess strong intrinsic financial strength.
                  Typically, they will be important institutions with valuable
                  and defensible business franchises, good financial
                  fundamentals, and an attractive and stable operating
                  environment.

         C        These banks possess good intrinsic financial strength.
                  Typically, they will be institutions with valuable and
                  defensible business franchises. These banks will demonstrate
                  either acceptable financial fundamentals within a stable
                  operating environment, or better than average financial
                  fundamentals within an unstable operating environment.

S&P

S&P's credit rating is a current opinion of an obligor's overall financial
capacity (its creditworthiness) to pay its financial obligation.

         AAA      The highest rating assigned by S&P. The obligor's capacity to
                  meet its financial commitment on the obligation is extremely
                  strong.

         AA       The obligor's capacity to meet its financial commitments on
                  the obligation is very strong.

         A        The obligation is somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than obligations in higher rated categories. However, the
                  obligor's capacity to meet its financial commitment on the
                  obligation is still strong.

DESCRIPTION OF INSURANCE RATINGS

MOODY'S

These ratings represent Moody's opinions of the ability of insurance companies
to pay punctually senior policyholder claims and obligations.

         Aaa      Insurance companies rated in this category offer exceptional
                  financial security. While the financial strength of these
                  companies is likely to change, such changes as can be
                  visualized are most unlikely to impair their fundamentally
                  strong position.

         Aa       These insurance companies offer excellent financial security.
                  Together with the Aaa group, they constitute what are
                  generally known as high grade companies. They are rated lower
                  than Aaa companies because long-term risks appear somewhat
                  larger.

         A        Insurance companies rated in this category offer good
                  financial security. However, elements may be present which
                  suggest a susceptibility to impairment sometime in the future.

S&P

S&P's credit rating is a current opinion of the creditworthiness of an obligor
with respect to a specific financial obligation, a specific class of financial
obligations, or a specific financial program.

         AAA      This is the highest rating assigned by S&P. The obligor's
                  capacity to meet its financial commitment on the obligation is
                  extremely strong.

         AA       The obligor's capacity to meet its financial commitments on
                  the obligation is very strong.

         A        An obligation rated A is somewhat more susceptible to the
                  adverse effects of changes in circumstances and economic
                  conditions than obligations in higher rated categories.
                  However, the obligor's capacity to meet its financial
                  commitment on the obligation is still strong.





                                       50
<PAGE>   352

DESCRIPTION OF CORPORATE/MUNICIPAL BOND RATINGS

S&P

INVESTMENT GRADE

         AAA      The highest rating. The rating indicates an extremely strong
                  capacity to meet its financial commitment.

         AA       Differs from AAA issues only in a small degree. The obligor's
                  capacity to meet its financial commitment is very strong.

         A        These bonds are somewhat more susceptible to the adverse
                  effects of changes in circumstances and economic conditions
                  than debt in higher rated categories. However, capacity to
                  meet its financial commitment on the obligations is still
                  strong.

         BBB      Exhibits adequate protection parameters. However, adverse
                  economic conditions or changing circumstances are more likely
                  to lead to a weakened capacity to meet its financial
                  commitment on the obligations.

   
NON-INVESTMENT GRADE
    

         BB       Less vulnerable to non-payment than other speculative issues.
                  However, these bonds face major ongoing uncertainties or
                  exposure to adverse business, financial or economic conditions
                  which could lead to inadequate capacity to meet financial
                  commitment on the obligation.

         B        More vulnerable to non-payment than obligations rated BB, but
                  currently has the capacity to meet its financial commitment on
                  the obligation. Adverse business, financial or economic
                  conditions will likely impair capacity or willingness to meet
                  its financial commitment on the obligation.

         CCC      Currently vulnerable to non-payment, and is dependent upon
                  favorable business, financial, and economic conditions to meet
                  its financial commitment on the obligation. In the event of
                  adverse business, financial, or economic conditions will
                  likely impair the capacity to meet its financial commitment on
                  the obligation.

         CC       Currently highly vulnerable to non-payment.

         C        This rating may be used to cover a situation where a
                  bankruptcy petition has been filed, or similar action has been
                  taken, but payments on this obligation are being continued.

         D        Bonds in payment default.

Ratings from AA to CCC may be modified by a plus (+) or minus (-) to show
relative standing within the major rating categories.

MOODY'S

INVESTMENT GRADE

         Aaa      Best quality. They carry the smallest degree of investment
                  risk and are generally referred to as "gilt edged." Interest
                  payments are protected by a large, or an exceptionally stable,
                  margin and principal is secure.

         Aa       High quality by all standards. Margins of protection may not
                  be as large as in Aaa securities or fluctuation of protective
                  elements may be greater, or there may be other elements
                  present that make the long-term risks appear somewhat larger
                  than in Aaa securities.

         A        These bonds possess many favorable investment attributes and
                  are to be considered as upper-medium grade obligations.
                  Factors giving security to principal and interest are
                  considered adequate, but elements may be present which suggest
                  a susceptibility to impairment sometime in the future.





                                       51
<PAGE>   353

         Baa      These bonds are considered medium-grade obligations (i.e.,
                  they are neither highly protected nor poorly secured).
                  Interest payments and principal security appear adequate for
                  the present but certain protective elements may be lacking or
                  may be characteristically unreliable over any great length of
                  time. Such bonds lack outstanding investment characteristics
                  and in fact have speculative characteristics as well.

NON-INVESTMENT GRADE

         Ba       These bonds have speculative elements; their future cannot be
                  considered as well assured. The protection of interest and
                  principal payments may be very moderate and thereby not well
                  safeguarded during good and bad times over the future.

         B        These bonds lack the characteristics of a desirable investment
                  (i.e., potentially low assurance of timely interest and
                  principal payments or maintenance of other contract terms over
                  any long period of time may be small).

         Caa      Bonds in this category have poor standing and may be in
                  default. These bonds carry an element of danger with respect
                  to principal and interest payments.

         Ca       Speculative to a high degree and could be in default or have
                  other marked shortcomings. Ca is the lowest rating.

DESCRIPTION OF MUNICIPAL NOTE RATINGS

MOODY'S

MIG1 & VMIG1               Short-term municipal securities rated MIG1 or
                           are of the best VMIG1 quality. They have strong
                           protection from established cash flows, superior
                           liquidity support or demonstrated broad-based access
                           to the market for refinancing.

MIG2 & VMIG2               These Short-term municipal securities are of
                           high quality. Margins of protection are ample
                           although not so large as in the preceding group.

MIG3 & VMIG3               Favorable quality. All security elements are
                           accounted for, but the undeniable strength of the
                           preceding grades is lacking. Liquidity and cash flow
                           protection may be narrow and marketing access for
                           refinancing is likely to be less well established.

S&P

An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in three years or less will likely receive a note
rating. Notes maturing beyond three years will most likely receive a long-term
debt rating.

         SP-1     Strong capacity to pay principal and interest. Those issues
                  determined to possess overwhelming safety characteristics will
                  be given a plus (+) designation.

         SP-2     Satisfactory capacity to pay principal and interest.

         SP-3     Speculative capacity to pay principal and interest.





                                       52
<PAGE>   354

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") assigns ratings to specific debt instruments
with original maturities of one year or less. The TBW Short-Term ratings
specifically assess the likelihood of an untimely payment of principal and
interest.

            TBW-1       Very high degree of likelihood that principal and
                        interest will be paid on a timely basis.

            TBW-2       While degree of safety regarding timely repayment of
                        principal and interest is strong, the relative degree is
                        not as high as for issues rated TBW-1.

            TBW-3       Lowest investment grade category. While more susceptible
                        to adverse developments than obligations with higher
                        ratings, capacity to service principal and interest in a
                        timely fashion is considered adequate.

            TBW-4       Non-investment grade and, therefore, speculative.




                                       53
<PAGE>   355

Investment Advisor and Sub-Administrator
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Distributor
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Administrator
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Transfer Agent and Custodian
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

Legal Counsel
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

Independent Accountants
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215

   
THE STATEMENT OF ADDITIONAL INFORMATION CONTAINS MORE DETAILED INFORMATION ABOUT
THE FUNDS. THE CURRENT STATEMENT OF ADDITIONAL INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY
CALLING 1-800-480-4111 OR BY WRITING TO THE ONE GROUP SERVICES COMPANY AT 3435
STELZER ROAD, COLUMBUS, OHIO 43219. THE STATEMENT OF ADDITIONAL INFORMATION IS
INCORPORATED INTO THIS PROSPECTUS BY REFERENCE. THE SEC MAINTAINS A WEB SITE
(WWW.SEC.GOV) THAT CONTAINS THE STATEMENT OF ADDITIONAL INFORMATION, MATERIALS
INCORPORATED BY REFERENCE AND OTHER INFORMATION REGARDING ONE GROUP(R).
    



                                       54
<PAGE>   356
   
                            ONE GROUP(R) MUTUAL FUNDS
                        INSTITUTIONAL MONEY MARKET FUNDS
                               COMBINED PROSPECTUS

                                 March ___, 1999

                    One Group(R) Government Money Market Fund
                  One Group(R) Treasury Only Money Market Fund
                 One Group(R) Cash Management Money Market Fund
             One Group(R) Treasury Cash Management Money Market Fund
          One Group(R) Treasury Prime Cash Management Money Market Fund
   One Group(R) U.S. Government Securities Cash Management Money Market Fund
            One Group(R) Municipal Cash Management Money Market Fund
    

    This prospectus describes seven money market mutual funds. The Funds are
         offered only to certain institutional and accredited investors.
The information in this prospectus is important. Please read it carefully before
                  you invest, and save it for future reference.

         PLEASE REMEMBER THAT SHARES OF THE FUNDS: - ARE NOT DEPOSITS OR
   OBLIGATIONS OF, OR GUARANTEED BY BANK ONE CORPORATION OR ITS AFFILIATES;
- - ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
     BY ANY FEDERAL OR STATE GOVERNMENTAL AGENCY; - INVOLVE INVESTMENT RISK,
          INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.

   
    

         THERE IS NO ASSURANCE THAT THE FUNDS WILL MEET THEIR INVESTMENT
     OBJECTIVES OR BE ABLE TO MAINTAIN A NET ASSET VALUE OF $1.00 PER SHARE
                             ON A CONTINUOUS BASIS.

          THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
    SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE
   ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
                             IS A CRIMINAL OFFENSE.
<PAGE>   357




<TABLE>
                               TABLE OF CONTENTS
<S>                                                                          <C>
   
A BRIEF PREVIEW OF THE FUNDS.................................................  1 
ABOUT THE FUNDS..............................................................  2 
                                                                                 
  One Group(R) Government Money Market Fund..................................  2    
  One Group(R) Treasury Only Money Market Fund...............................  4
  ONE GROUP(R) CASH MANAGEMENT MONEY MARKET FUND.............................  6
  ONE GROUP(R) TREASURY CASH MANAGEMENT MONEY MARKET FUND....................  8
  ONE GROUP(R) TREASURY PRIME CASH MANAGEMENT MONEY MARKET FUND.............. 10
  ONE GROUP(R) U.S. GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET FUND.. 12  
  ONE GROUP(R) MUNICIPAL CASH MANAGEMENT MONEY MARKET FUND................... 14
MORE ABOUT THE FUNDS......................................................... 16
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS........................... 17
                                                                                
  Purchasing Fund Shares..................................................... 17
  SALES CHARGES                                                                 
  Exchanging Fund Shares..................................................... 20
  Redeeming Fund Shares...................................................... 21
                                                                                
SHAREHOLDER INFORMATION...................................................... 22
  Voting Rights.............................................................. 22
  Dividend Policies.......................................................... 23
  Tax Treatment of the Funds................................................. 23
  Tax Treatment of Shareholders.............................................. 23
  Shareholder Inquiries...................................................... 24
                                                                                
ORGANIZATION & MANAGEMENT OF THE FUNDS....................................... 24
  The Funds.................................................................. 24
  The Board of Trustees...................................................... 24
  The Advisor................................................................ 24
  The Distributor............................................................ 25
  The Administrator and Sub-Administrator.................................... 25
  The Transfer Agent, Custodian and Sub-Custodian............................ 25
  Year 2000.................................................................. 25
                                                                                
DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES................... 27
  Investment Practices....................................................... 27
  Investment Risks........................................................... 29
  Investment Policies........................................................ 29
                                                                                
APPENDIX: DESCRIPTION OF RATINGS............................................. 31
</TABLE>                                                                        
                                                                                

    
<PAGE>   358

A BRIEF PREVIEW OF THE FUNDS

   
WHAT ARE THE GOALS OF THE FUNDS?
    

The Funds are designed to produce high current income with liquidity and
stability of principal. Each Fund will use its best efforts to maintain a
constant net asset value of $1.00 per share, although there is no guarantee that
each Fund will be able to do so. Please read about each Fund before investing.

WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?

The Funds will invest only in U.S. dollar-denominated securities, will maintain
an average maturity on a dollar-weighted basis of 90 days or less, and will
acquire only "eligible securities" that present minimal credit risks and have a
maturity of 397 days or less. The Funds intend to comply with Rule 2a-7 under
The Investment Company Act of 1940. An investment in the Funds is not a deposit
of BANK ONE CORPORATION or its affiliates and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?

   
The Funds invest in securities that are backed by "credit enhancements" such as
letters of credit. The value of investments in the Funds could decrease if the
credit quality of the credit enhancement provider declines. The Government Money
Market Fund, the Cash Management Money Market Fund, the U.S. Government Security
Cash Management Money Market Fund and the Municipal Cash Management Money Market
Fund invest in mortgage-related securities which have significantly greater
price and yield volatility than traditional fixed income securities. For more
information about risks, please read "More About the Funds" and "Investment
Risks."
    

WHO CAN BUY SHARES?

The Funds are offered only to institutional and other accredited investors. For
more details, please see the section of this prospectus entitled "Purchasing
Fund Shares."

WHAT CLASSES OF SHARES ARE AVAILABLE?

   
THE GOVERNMENT MONEY MARKET FUND AND THE TREASURY ONLY MONEY MARKET FUND OFFER
ONLY ONE CLASS OF SHARES. THE CASH MANAGEMENT MONEY MARKET, TREASURY CASH
MANAGEMENT MONEY MARKET, TREASURY PRIME CASH MANAGEMENT MONEY MARKET, U.S.
GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET, AND MUNICIPAL CASH
MANAGEMENT MONEY MARKET FUNDS ("CASH MANAGEMENT FUNDS") OFFER CLASS I AND CLASS
A SHARES. CLASS I AND CLASS A SHARES ARE IDENTICAL EXCEPT FOR THE SERVICES
OFFERED AND THE EXPENSES BORNE BY EACH CLASS.
    

HOW DO I PURCHASE AND REDEEM SHARES?

   
You may buy and redeem shares of the Funds on any day that the Funds are open
for business. Purchase and redemption procedures are explained in greater detail
in "How To Do Business With the One Group Mutual Funds." For additional
information, call The One Group Services Company at 1-800-480-4111.
    

HOW ARE DIVIDENDS PAID?

   
Generally, dividends are declared on each business day and are distributed
monthly. Any capital gains are distributed at least annually. Distributions are
paid in additional shares of the same class unless you elect to take the payment
in cash. For a more detailed discussion of dividends, see "Dividend Policies."
    

WHO MANAGES THE FUNDS?

Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Funds.
Banc One Investment Advisors is paid a fee for its services. A more detailed
discussion regarding Banc One Investment Advisors, its services and compensation
can be found in the Prospectus under the headings "The Advisor" and "Expense
Summary."



                                       1
<PAGE>   359

THE ONE GROUP(R) GOVERNMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The Fund seeks high current income with liquidity and stability of principal.

PORTFOLIO SECURITIES

   
The Fund invests exclusively in securities that are issued or guaranteed by the
U.S. government or by select U.S. government agencies and instrumentalities,
some of which are subject to repurchase agreements, as well as variable and
floating rate instruments, mortgage-backed securities, and puts. The Fund may
invest in other money market funds if those funds have similar investment
policies and objectives and invest only in securities with short-term ratings
that are equal to or higher than those in which the Fund invests. The Fund may
also engage in securities lending. For a list of all the securities in which the
Fund may invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

   
The Fund invests in mortgage-related securities which have significantly greater
price and yield volatility than traditional fixed income securities. Before you
invest, please read "More About the Funds" and "Investment Risks."
    

SHAREHOLDER EXPENSES

<TABLE>
<S>                                                           <C>
SHAREHOLDER TRANSACTION EXPENSES(1)
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                         none

ANNUAL OPERATING EXPENSES
  (as a percentage of average daily net assets)(2)
Investment Advisory Fees                                      .08%
Other Expenses                                                .10%
Total Fund Operating Expenses                                 .18%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent.

(2) Expense information has been restated to reflect current fees.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.
<TABLE>
<CAPTION>

     1 YEAR        3 YEARS        5 YEARS        10 YEARS
     ------        -------        -------        --------
<S>                <C>            <C>            <C>

   
       $2            $6             $10             $23
</TABLE>
    


These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       2
<PAGE>   360

   
ONE GROUP(R) GOVERNMENT MONEY MARKET FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than
10 years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
   
                                                                                                           JUNE 14,
                                                            YEAR ENDED JUNE 30,                             1993 TO
                                                            -------------------                            JUNE 30,
                                          1998         1997         1996         1995        1994           1993(a)
                                          ----         ----         ----         ----        ----          --------
    
<S>                                     <C>          <C>           <C>          <C>         <C>           <C>
NET ASSET VALUE, BEGINNING
  OF PERIOD                             $    1.000   $    1.000    $  1.000     $  1.000    $  1.000      $  1.000
Investment Activities:
  Net investment income                      0.055        0.053       0.055        0.053       0.033         0.001
Distributions:
  Net investment income                     (0.055)      (0.053)     (0.055)      (0.053)     (0.033)       (0.001)
NET ASSET VALUE, END OF PERIOD          $    1.000   $    1.000    $  1.000     $  1.000    $  1.000      $  1.000
Total Return                                  5.64%        5.43%       5.61%        5.41%       3.40%         3.28%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of
    period (000)                        $3,712,252   $1,083,438    $855,613     $720,699    $692,253      $244,991
  Ratio of expenses to average
    net assets                                0.15%        0.14%       0.18%        0.21%       0.11%         0.07%(b)
  Ratio of net investment
    income to average net assets              5.48%        5.31%       5.46%        5.28%       3.41%(b)      3.13%(b)
  Ratio of expenses to
    average net assets*                       0.15%        0.14%       0.18%        0.22%       0.20%         0.33%(b)
  Ratio of net investment
    income to average net
    assets*                                   5.48%        5.31%       5.46%        5.27%       3.32%         2.87%(b)
</TABLE>

* During the period certain fees were voluntarily reduced. If such voluntary fee
  reductions had not occurred, the ratios would have been as indicated.
  (a)Period from commencement of operations. (b)Annualized.



                                       3
<PAGE>   361

   
ONE GROUP(R) TREASURY ONLY MONEY MARKET FUND
    

INVESTMENT OBJECTIVE

The Fund seeks high current income with liquidity and stability of principal
with the added assurance of a Fund that does not purchase securities that are
subject to repurchase agreements.

PORTFOLIO SECURITIES

   
The Fund invests exclusively in U.S. Treasury bills, notes, bonds and other U.S.
obligations issued or guaranteed by the U.S. Treasury. The Fund may also engage
in securities lending. For a list of all the securities in which the Fund may
invest, please read "Investment Practices."
    

RISK CONSIDERATIONS

Before you invest, please read "More About the Funds" and "Investment Risks."

SHAREHOLDER EXPENSES

<TABLE>
<S>                                                                     <C>
SHAREHOLDER TRANSACTION EXPENSES(1)
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                                   None
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily net assets)(2)
Investment Advisory Fees                                                .08%
Other Expenses                                                          .10%
Total Fund Operating Expenses                                           .18%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent. In
    addition, a $7.00 charge is deducted from redemption amounts paid by wire.

(2) Expense information has been restated to reflect current fees.

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.

<TABLE>
<CAPTION>
         1 YEAR          3 YEARS          5 YEARS           10 YEARS
         ------          -------          -------           --------
<S>                      <C>              <C>               <C>
           $2              $6               $10               $23
</TABLE>

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.



                                       4
<PAGE>   362
THE ONE GROUP(R) TREASURY ONLY MONEY MARKET FUND  FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than
10 years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
                                                                                                               APRIL 16,
                                                                 YEAR ENDED JUNE 30,                            1993 TO
                                                                 -------------------                           JUNE 30,
                                              1998          1997          1996        1995        1994          1993(a)
                                              ----          ----          ----        ----        ----          -------
<S>                                         <C>           <C>           <C>         <C>          <C>           <C>
NET ASSET VALUE, BEGINNING
  OF PERIOD                                 $  1.000      $  1.000      $  1.000    $  1.000     $  1.000       $ 1.000
Investment Activities:
  Net investment income                        0.052         0.051         0.052       0.051        0.032         0.006
Distributions:
  Net investment income                       (0.052)       (0.051)       (0.052)     (0.051)      (0.032)       (0.006)
NET ASSET VALUE, END OF PERIOD              $  1.000      $  1.000      $  1.000    $  1.000     $  1.000       $ 1.000
Total Return                                    5.30%         5.24%         5.38%       5.22%        3.23%         2.96%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)         $719,570      $480,860      $415,961    $288,697     $217,725       $60,330
  Ratio of expenses to average
    net assets                                  0.15%         0.15%         0.17%       0.20%        0.15%         0.07%(b)
  Ratio of net investment
    income to average net assets                5.18%         5.12%         5.23%       5.14%        3.23%         2.95%(b)
  Ratio of expenses to average
    net assets*                                 0.15%         0.15%         0.17%       0.21%        0.22%         0.33%(b)
  Ratio of net investment
    income to average net assets*               5.18%         5.12%         5.23%       5.13%        3.16%         2.69%(b)
</TABLE>

* During the period certain fees were voluntarily reduced. If such voluntary fee
  reductions had not occurred, the ratios would have been as indicated.
  (a)Period from commencement of operations. (b)Annualized.



                                       5
<PAGE>   363

   
ONE GROUP(R) CASH MANAGEMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The Fund seeks high current income with liquidity and stability of principal.

PORTFOLIO SECURITIES

The Fund invests in short-term money market obligations, including securities
that are issued or guaranteed by the U.S. government or its agencies and
instrumentalities, some of which are subject to repurchase agreements,
certificates of deposit, variable and floating rate instruments, mortgage-backed
securities, puts, municipal securities and other short-term obligations. The
Fund may invest in other money market funds if those funds have similar
investment policies and objectives and invest only in securities with short-term
ratings that are equal to or higher than those in which the Fund invests. The
Fund may concentrate in the financial services sector, including asset-backed
commercial paper programs. This means that at least 25% of the Fund's total
assets will be invested in the financial services industry. The Fund may also
engage in securities lending. For a list of all the securities in which the Fund
may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in securities that are backed by "credit enhancements" such as
letters of credit. The value of your investment in the Fund could decrease if
the value of the securities in the portfolio decreases in response to declining
credit quality of a credit enhancement provider. Before you invest, please read
"More Information about the Funds" and "Investment Risks."


SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                   CLASS I       CLASS A
                                                      -------       -------
<S>                                                    <C>          <C>
Maximum Sales Charge Imposed on Purchases              none          none
(as a percentage of offering price)
ANNUAL OPERATING EXPENSES
(as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver)(2)         .16%          .16%
12b-1 fees                                             none          .25%
Other Expenses (after reimbursements)(3)               .18%          .18%
Total Fund Operating Expenses (after fee waivers)(4)   .34%          .59%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent. In
    addition, a $7.00 charge is deducted from redemption amounts paid by wire.

(2) Without the fee waiver, Investment Advisory Fees would be .20% for both
    classes of shares.

(3) Without expense reimbursements, Other Expenses would be .19% for both 
    classes of shares.

(4) Without a voluntary reduction of Investment Advisory fees and reimbursement
    of other expenses, Total Fund Operating Expenses would be .39% for Class I
    shares and .64% for Class A shares.
    



                                       6
<PAGE>   364

   
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.
<TABLE>
<CAPTION>
                                            CLASS I
                                            -------
                           1 YEAR     3 YEARS    5 YEARS     10 YEARS
                           ------     -------    -------     --------
<S>                        <C>        <C>        <C>         <C>
With Fee Waivers            $ 3        $ 11       $ 19         $ 43
Without Fee Waivers         $ 4        $ 13       $ 22         $ 49
    

<CAPTION>
                                            CLASS A
                                            -------
                           1 YEAR     3 YEARS    5 YEARS     10 YEARS
                           ------     -------    -------     --------
<S>                        <C>        <C>        <C>         <C>
   
With Fee Waivers            $ 6        $ 19       $ 33         $ 74
Without Fee Waivers         $ 7        $ 20       $ 36         $ 80
</TABLE>


These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP CASH MANAGEMENT MONEY MARKET FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than
10 years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by ___________ LLP, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    



                                       7
<PAGE>   365

   
ONE GROUP(R) TREASURY CASH MANAGEMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The Fund seeks high current income with liquidity and stability of principal.

PORTFOLIO SECURITIES

The Fund invests exclusively in U.S. Treasury bills, notes, bonds and other U.S.
obligations issued or guaranteed by the U.S. Treasury, some of which are subject
to repurchase agreements. For a list of all the securities in which the Fund may
invest, please read "Investment Practices."

RISK CONSIDERATIONS

Before you invest, please read "More Information about the Funds" and
"Investment Risks."

SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>

SHAREHOLDER TRANSACTION EXPENSES (1)                   CLASS I        CLASS A
                                                       -------        -------
<S>                                                    <C>            <C>
Maximum Sales Charge Imposed on Purchases               none           none
(as a percentage of offering price)
ANNUAL OPERATING EXPENSES
(as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver)(2)          .17%           .17%
12b-1 Fees                                              none           .25%
Other Expenses (after reimbursements)(3)                .17%           .17%
Total Fund Operating Expenses (after fee waivers)(4)    .34%           .59%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent. In
    addition, a $7.00 charge is deducted from redemption amounts paid by wire.

(2) Without the fee waiver, Investment Advisory fees would be .20% for both
    classes of shares.

(3) Without expense fee reimbursements, Other Expenses would be .18% for both
    classes of shares

(4) Without a voluntary reduction of Investment Advisory Fees and the
    reimbursement of Other Expenses, Total Fund Operating Expenses would be .38%
    for Class I shares and .63% for Class A shares.
    



                                       8
<PAGE>   366

   
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.

<TABLE>
<CAPTION>
                                            CLASS I
                                            ------- 
                           1 YEAR      3 YEARS      5 YEARS     10 YEARS
                           ------      -------      -------     --------
<S>                        <C>         <C>          <C>         <C>
With Fee Waivers            $ 3         $ 11         $ 19         $ 43
Without Fee Waivers         $ 4         $ 12         $ 21         $ 48

<CAPTION>
                                            CLASS A
                                            ------- 
                           1 YEAR      3 YEARS      5 YEARS     10 YEARS
                           ------      -------      -------     --------
<S>                        <C>         <C>          <C>         <C>
With Fee Waivers            $ 6         $ 19         $ 33         $ 74
Without Fee Waivers         $ 6         $ 20         $ 35         $ 79
</TABLE>

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP TREASURY CASH MANAGEMENT MONEY MARKET FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by _____________ LLP, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    



                                       9
<PAGE>   367

   
ONE GROUP(R) TREASURY PRIME CASH MANAGEMENT MONEY MARKET FUND


INVESTMENT OBJECTIVE

The Fund seeks high current income with liquidity and stability of principal.

PORTFOLIO SECURITIES

The Fund invests in U.S. Treasury bills, notes, bonds and other U.S. obligations
issued or guaranteed by the U.S. Treasury. The Fund does not invest in
repurchase agreements. For a list of all the securities in which the Fund may
invest, please read "Investment Practices."


RISK CONSIDERATIONS

Before you invest, please read "More Information about the Funds" and
"Investment Risks."

SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES (1)                     CLASS I      CLASS A
                                                         -------      -------
<S>                                                      <C>          <C>
Maximum Sales Charge Imposed on Purchases                 none         none
(as a percentage of offering price)
ANNUAL OPERATING EXPENSES
(as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver)(2)            .15%          .15%
12b-1 Fees                                                none          .25%
Other Expenses (after reimbusements)(3)                   .19%          .19%
Total Fund Operating Expenses (after fee waivers)(4)      .34%          .59%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent. In
    addition, a $7.00 charge is deducted from redemption amounts paid by wire.

(2) Without the fee waiver, Investment Advisory Fees would be .20% for both
    classes of shares.

(3) Without expense reimbursements, Other Expenses would be .20% for both
    classes of shares.

(4) Without a voluntary reduction of Investment Advisory Fees and reimbursement
    of Other Expenses, Total Fund Operating Expenses would be .40% for Class I
    shares and .65% for Class A shares.
    



                                       10
<PAGE>   368

   
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.

<TABLE>
<CAPTION>
                                               CLASS I
                                               -------
                           1 YEAR      3 YEARS        5 YEARS      10 YEARS
                           ------      -------        -------      --------
<S>                        <C>         <C>            <C>          <C>
With Fee Waivers            $ 3         $ 11           $ 19          $ 43
Without Fee Waivers         $ 4         $ 13           $ 22          $ 51

<CAPTION>
                                               CLASS A
                                               -------
                           1 YEAR      3 YEARS        5 YEARS      10 YEARS
                           ------      -------        -------      --------
<S>                        <C>         <C>            <C>          <C>
With Fee Waivers            $ 6          $ 19           $ 33         $ 74
Without Fee Waivers         $ 7          $ 21           $ 36         $ 81
</TABLE>

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP TREASURY PRIME CASH MANAGEMENT MONEY MARKET FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by ____________ LLP, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    



                                       11
<PAGE>   369

   
ONE GROUP(R) U.S. GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The Fund seeks high current income with liquidity and stability of principal.

PORTFOLIO SECURITIES

The Fund invests in short-term securities issued or guaranteed by the U. S.
government, its agencies or instrumentalities; and repurchase agreements
relating to such securities. The Fund may also engage in securities lending. For
a list of all the securities in which the Fund may invest, please read
"Investment Practices."

RISK CONSIDERATIONS

Before you invest, please read "More Information about the Funds" and
"Investment Risks."

SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES (1)                       CLASS I      CLASS A
                                                           -------      -------
<S>                                                        <C>          <C>      
Maximum Sales Charge Imposed on Purchases                   none          none
(as a percentage of offering price)
ANNUAL OPERATING EXPENSES
(as a percentage of average daily net assets)
Investment Advisory Fees   (after fee waiver)(2)            .18%          .18%
12b-1 Fees                                                  none          .25%
Other Expenses (after reimbursements)(3)                    .17%          .17%
Total Fund Operating Expenses (after fee waivers)(4)        .35%          .60%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent. In
    addition, a $7.00 charge is deducted from redemption amounts paid by wire.

(2) Without the fee waiver, Investment Advisory Fees would be .20% for both
    classes of shares.

(3) Without expense reimbursements, Other Expenses would be .18% for both
    classes of shares.

(4) Without the voluntary reduction of Investment Advisory Fees and
    reimbursement of Other Expenses, Total Operating Expenses would be .38% for
    Class I shares and .63% for Class A shares.
    



                                       12
<PAGE>   370

   
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.

<TABLE>
<CAPTION>
                                      CLASS I
                                      -------
                           1 YEAR     3 YEARS      5 YEARS    10 YEARS
                           ------     -------      -------    --------
<S>                        <C>        <C>          <C>        <C>
With Fee Waivers            $ 4        $ 11         $ 20       $ 44
Without Fee Waivers         $ 4        $ 12         $ 21       $ 48

<CAPTION>
                                            CLASS A
                                            -------
                           1 YEAR     3 YEARS      5 YEARS    10 YEARS
                           ------     -------      -------    --------
<S>                        <C>        <C>          <C>        <C>
With Fee Waivers           $ 6         $ 19         $ 33       $ 75
Without Fee Waivers        $ 6         $ 20         $ 35       $ 79
</TABLE>

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP U.S. GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET FUND 
FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than
10 years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by __________, whose report, along with the Fund's financial statements,
is incorporated by reference in the Statement of Additional Information, which
is available upon request.
    



                                       13


<PAGE>   371
   
ONE GROUP(R) MUNICIPAL CASH MANAGEMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The Fund seeks high current income exempt from Federal income tax with liquidity
and stability of principal.

PORTFOLIO SECURITIES

As a matter of fundamental policy, the Fund will invest at least 80% of its
total assets in municipal securities. These are securities issued by or on
behalf of the states, territories and possessions of the United States,
including the District of Columbia, and their political subdivisions, agencies,
instrumentalities and authorities. These municipal securities produce interest
that, in the opinion of bond counsel for the issuer, is exempt from Federal
income tax. However, the Fund may invest as much as 100% of its assets in
municipal securities that produce income that is subject to the Federal
alternative minimum tax. If you are subject to the Federal alternative minimum
tax, please read the section of this prospectus entitled "Tax Treatment of
Shareholders" before you invest. The Fund also may invest up to 20% of its total
assets in other types of securities, such as taxable money market instruments,
including repurchase agreements, as well as engage in securities lending. For a
list of all the securities in which the Fund may invest, please read "Investment
Practices."

RISK CONSIDERATIONS

The Fund invests in securities that are backed by "credit enhancements" such as
letters of credit. The value of your investment in the Fund could decrease if
the value of the securities in the portfolio decreases in response to declining
credit quality of a credit enhancement provider. In addition, the Fund invests
in mortgage-related securities which have significantly greater price and yield
volatility than traditional fixed-income securities. Before you invest, please
read "More Information about the Funds" and "Investment Risks."

SHAREHOLDER EXPENSES
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES (1)                 CLASS I          CLASS A
                                                     -------          -------
<S>                                                  <C>              <C>
Maximum Sales Charge Imposed on Purchases             none              none
(as a percentage of offering price)
ANNUAL OPERATING EXPENSES
(as a percentage of average daily net assets)
Investment Advisory Fees (after fee waiver)(2)        .17%              .17%
12b-1 Fees                                            none              .25%
Other Expenses (after reimbursements)(3)              .17%              .17%
Total Fund Operating Expenses (after fee waivers)(4)  .34%              .59%
</TABLE>

(1) If you buy or sell shares through a Shareholder Servicing Agent, you may be
    charged separate transaction fees by the Shareholder Servicing Agent. In
    addition, a $7.00 charge is deducted from redemption amounts paid by wire.

(2) Without the fee waiver, Investment Advisory Fees would be .20% for both
    classes of shares.

(3) Without expense reimbursements, Other Expenses would be .18% for both
    classes of shares.

(4) Without the voluntary reduction of Investment Advisory Fees and
    reimbursement of Other Expenses, Total Operating Expenses would be .38% for
    Class I shares and .63% for Class A shares.
    



                                       14
<PAGE>   372

   
EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) 5% annual return; and (2) redemption at the end of each time
period.

<TABLE>
<CAPTION>
                                             CLASS I
                                             -------
                           1 YEAR     3 YEARS      5 YEARS      10 YEARS
                           ------     -------      -------      --------
<S>                        <C>        <C>          <C>          <C>
With Fee Waivers            $ 3        $ 11         $ 19         $ 43
Without Fee Waivers         $ 4        $ 12         $ 21         $ 48

<CAPTION>
                                             CLASS A
                                             -------
                           1 YEAR     3 YEARS      5 YEARS      10 YEARS
                           ------     -------      -------      --------
<S>                        <C>        <C>          <C>          <C>
With Fee Waivers            $ 6        $ 19         $ 33         $ 74
Without Fee Waivers         $ 6        $ 20         $ 35         $ 79
</TABLE>

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

ONE GROUP MUNICIPAL CASH MANAGEMENT MONEY MARKET FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than
10 years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by ________________, whose report, along with the Fund's financial
statements, is incorporated by reference in the Statement of Additional
Information, which is available upon request.
    



                                       15
<PAGE>   373
MORE ABOUT THE FUNDS

PORTFOLIO QUALITY

   
Securities will be purchased by the Funds only if Banc One Investment Advisors
determines that they present minimal credit risk under guidelines adopted by the
One Group Board of Trustees. In addition, unless a more specific rating is
specified, all investments of the Funds must be rated in one of the two highest
rating categories described in "Description of Ratings" in the Appendix. If an
investment is unrated, Banc One Investment Advisors must determine that it is of
comparable quality to a rated security. Banc One Investment Advisors will look
at a security's rating at the time of investment. For more information about
ratings, please see "Description of Ratings" in the Appendix.
    

ILLIQUID INVESTMENTS

   
Each Fund may invest up to 10% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by the Board of Trustees in determining whether an investment
is illiquid.
    

SPECIAL RISK CONSIDERATIONS

NET ASSET VALUE: There is no assurance that the Funds will meet their investment
objectives or be able to maintain a net asset value of $1.00 per share on a
continuous basis.

PORTFOLIO TURNOVER: The Funds attempt to increase yield by taking advantage of
short-term market variations. This policy is expected to result in high
portfolio turnover. However, this should not adversely affect the Funds because
they usually do not pay brokerage commissions when purchasing U.S. government
securities.

FIXED INCOME SECURITIES: The value of the securities held by the Funds will
increase or decrease based on changes in interest rates. If rates increase, the
value of the Funds' investments generally decline. On the other hand, if rates
fall, the value of the investments generally increases. The value of your
investment in a Fund will increase or decrease as the value of a Fund's
investments increase and decrease. While securities with longer duration and
maturities tend to produce higher yields, they also are subject to greater
fluctuations in value when interest rates change. Usually changes in the value
of fixed income securities will not affect cash income generated, but may affect
the value of your investment. Fixed income securities also are subject to the
risk that the issuer of the security will be unable to meet its repayment
obligation.

   
DERIVATIVES: The Cash Management Money Market Fund and the Municipal Cash
Management Money Market Fund may invest in securities that are considered to be
derivatives. "Derivatives" are securities or contracts that derive their value
from the performance of underlying assets or securities. These securities may be
more volatile than other securities. These include mortgage-backed securities,
including collateralized mortgage obligations and Real Estate Mortgage
Investment Conduits (CMOs and REMICs). Derivatives present, to varying degrees,
market, credit, regulatory and pre-payment risks. The Fund's use of derivatives
may cause the Fund to recognize higher amounts of short-term capital gains
(generally taxed at ordinary income tax rates) than it would if the Fund did not
use such instruments. For a more detailed discussion of these risks, please read
"Investment Risks."

CONCENTRATION: The Cash Management Money Market Fund may invest a significant
portion of its assets in the securities of companies in the financial services
industry. This increases the Fund's risk of loss if an issuer fails to make
principal or interest payments or if the market value of a security declines.
    



                                       16
<PAGE>   374
   
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS
    

PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

- -   The One Group Services Company, and

- -   Shareholder Servicing Agents. These include investment advisors, brokers,
    financial planners, banks, insurance companies, retirement or 401(k) plan
    sponsors, or other intermediaries. Shares purchased this way will be held
    for you by the Shareholder Servicing Agent.

WHO MAY PURCHASE FUND SHARES?

Fund shares my be purchased by:

- -   Commercial and retail institutional investors, including affiliates of
    BANK ONE CORPORATION, that have opened accounts with the Fund's transfer
    agent, State Street Bank and Trust Company, either directly or through a
    Shareholder Servicing Agent.

- -   Individuals with a net worth, or joint net worth with their spouse, at the
    time of purchase in excess of $1 million.

- -   Individuals with annual income, or joint annual income with their spouse, at
    the time of purchase in excess of $200,000.

- -   If you have questions about eligibility, please call The One Group Services
    Company at 1-800-280-4111.

WHEN CAN I BUY SHARES?

- -   Purchases may be made on any business day. This includes any day that the
    Funds are open for business, other than weekends, days on which the New York
    Stock Exchange ("NYSE") is closed, and the following holidays: New Years
    Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial
    Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving,
    and Christmas.

   
- -   Purchase requests will be effective on the day received by The One Group
    Services Company and you will be eligible to receive dividends declared the
    same day, if (i) such purchase orders are received by The One Group Services
    Company before 4:00 p.m., Eastern Time ("ET") for the Government Money
    Market Fund and the Cash Management Funds (other than the Municipal Cash
    Management Money Market Fund), before 2:00 p.m. ET for the Treasury Only
    Money Market Fund, and before 12:00 p.m. ET for the Municipal Cash
    Management Money Market Fund, and (ii) the Fund's custodian, State Street
    Bank and Trust Company, receives "federal funds" before 4:00 p.m., ET. If
    State Street Bank and Trust Company does not receive federal funds by the
    cut-off time, the purchase order will not be effective until the next
    business day on which federal funds are timely received by State Street Bank
    and Trust Company. On occasion, the NYSE will close before 4:00 p.m. ET.
    When that happens, purchase requests received after the NYSE closes will be
    effective the following business day.
    

- -   If your shares are held by a Shareholder Servicing Agent, it is the
    responsibility of the Shareholder Servicing Agent to send your purchase or
    redemption order to the Fund. Your Shareholder Servicing Agent may have an
    earlier cut-off time for purchase and redemption requests.

- -   The One Group Services Company can reject a purchase order if it does not
    think that it is in the best interests of a Fund and/or shareholders to
    accept the order.

- -   Shares are electronically recorded. Therefore, certificates will not be
    issued.



                                       17
<PAGE>   375
HOW MUCH DO SHARES COST?

- -   Shares are sold at net asset value ("NAV").

- -   NAV per share is calculated by dividing the total market value of a Fund's
    investments and other assets (minus expenses) by the number of outstanding
    shares. The Funds use their best efforts to maintain their NAV at $1.00,
    although there is no guarantee that they will be able to do so.

- -   NAV is calculated each business day as of 2:00 p.m. ET and following the
    close of the NYSE at 4:00 p.m. ET. On occasion, the NYSE will close before
    4:00 p.m. ET. When that happens, NAV will be calculated as of the time the
    NYSE closes.

HOW DO I OPEN AN ACCOUNT?

1.  Read the prospectus carefully, and select the Fund or Funds most appropriate
    for you.

2.  Decide how much you want to invest.

- -   The minimum initial investment is $1,000,000.

- -   Subsequent investments must be at least $5,000.

- -   The One Group Services Company may waive these minimums.

3.  Complete the Account Application Form. Be sure to sign up for all of the
    Account privileges that you plan to take advantage of. Doing so now means
    that you will not have to complete additional paperwork later.

   
4.  Send the completed application and a personal check (unless you choose to
    pay by wire or bank transfer) payable to "One Group" to:

    State Street Bank and Trust Company
    c/o One Group
    P.O. Box 8528
    Boston, MA 02266-8528
    

5.  All checks should be in U.S. dollars. Third party checks will not be
    accepted. Redemptions from a Fund will not be permitted for ten (10)
    calendar days if purchases are made by check.

6.  If you purchase shares through a Shareholder Servicing Agent, you may be
    required to complete additional forms or follow additional procedures. You
    should contact your Shareholder Servicing Agent regarding purchases,
    exchanges and redemptions.

7.  If you have any questions, contact your Shareholder Servicing Agent or call
    The One Group Services Company at 1-800-480-4111.



                                       18
<PAGE>   376
CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes. Simply select this option on your Account Application Form and then:

- -   Contact your Shareholder Servicing Agent or The One Group Services Company
    at 1-800-480-4111 to relay your purchase instructions.

   
- -   Authorize a bank transfer or initiate a wire transfer payable to "One Group"
    to State Street Bank and Trust Company to the following wire address:

       State Street Bank & Trust Company
       Attn: Custody & Shareholder Services
       ABA 011 000 028
       DDA 99034167
       FBO One Group Fund (ex: The One
       Group Government Money Market Fund)
       Your Account Number (ex: 123456789)
       Your Account Registration (ex: John Smith &
       Mary Smith, JTWROS)

- -   One Group uses reasonable procedures to confirm that instructions given by
    telephone are genuine. These procedures include recording telephone
    instructions and asking for personal identification. If these procedures are
    followed, the One Group will not be responsible for any loss, liability,
    cost or expense of acting upon unauthorized or fraudulent instructions; you
    bear the risk of loss.
    

- -   You may revoke your right to make purchases over the telephone by sending a
    letter to:

   
       State Street Bank and Trust Company
       c/o One Group
       P.O. Box 8528
       Boston, MA 02266-8528

SALES CHARGES

The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from 12b-1 fees and payments by The One
Group Services Company from its own resources. Occasionally, The One Group
Services Company, at its own expense, also will provide cash incentives to
select Shareholder Servicing Agents. Those Shareholder Servicing Agents who may
receive special incentives include Banc One Securities Corporation, The Advisors
Group, United Planners Financial Services of America, Inc., The Legend Group,
and Rosewood Retirement Advisory Services, LLC.
    

12B-1 FEES

   
12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to brokers and other Shareholder
Servicing Agents that sell shares of One Group.
    

- -   The 12b-1 fees vary by share class as follows:

1.  Class A shares pay a 12b-1 fee of .25% of the average daily net assets of
    the Fund.

2.  There are no 12b-1 fees for Class I shares.

- -   12b-1 fees help The One Group Services Company sell Class A without an
    "up-front" sales charge by defraying the costs of advancing brokerage
    commissions and other expenses paid to Shareholder Servicing Agents.



                                       19
<PAGE>   377

   
- -   The One Group Services Company may use up to .25% of the fees for
    shareholder servicing

- -   The One Group Services Company may pay 12b-1 fees to its affiliates and to
    Banc One Investment Advisors and its affiliates (or any sub-advisor) for
    brokerage and other agency transactions.
    

EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

   
You may exchange your shares for shares of any other Fund described in this
prospectus. You may also exchange your shares for shares of any institutional
money market fund that One Group may offer.

- -   One Group may change the terms and conditions of your exchange privileges
    upon 60 days written notice.

- -   One Group Funds offers a Systematic Exchange Privilege which allows you to
    automatically exchange shares of one fund to another on a monthly or
    quarterly basis. This privilege is useful in Dollar Cost Averaging. To
    participate in this privilege, please select it on your account application.
    To learn more about it, please call The One Group Services Company at
    1-800-480-4111.

- -   One Group does not charge a fee for this privilege.
    

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

- -   State Street Bank and Trust Company receives the request by 12:30 p.m. ET.

   
- -   You have provided One Group with all of the information necessary to process
    the exchange.
    

- -   You have received a current prospectus of the Fund or Funds in which you
    wish to invest.

- -   You have contacted your Shareholder Servicing Agent, if necessary.

ARE EXCHANGES TAXABLE?

Generally:

- -   An exchange between Funds is considered a sale and may result in a capital
    gain or loss for Federal income tax purposes.

- -   You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short term movements in the market. Therefore:

   
- -   To prevent disruptions in the management of the Funds, One Group limits
    excessive exchange activity.
    

- -   Exchange activity is excessive if it EXCEEDS TWO SUBSTANTIVE EXCHANGE
    REDEMPTIONS (WITHIN 30 DAYS OF EACH OTHER) WITHIN A TWELVE MONTH PERIOD.



                                       20
<PAGE>   378

   
- -   In addition, One Group reserves the right to reject any exchange request
    (even those that are not excessive) if the Fund reasonably Believes that the
    exchange will result in excessive transaction costs or otherwise adversely
    affect other shareholders.
    

REDEEMING FUND SHARES

WHEN CAN I REDEEM SHARES?

You may redeem all or some of your shares on any day that the Funds are open for
business.

- -   Redemption requests received by The One Group Services Company before
    4:00 p.m. ET (or when the NYSE closes), will be effective that day.

HOW DO I REDEEM SHARES?

- -   Unless you have selected the telephone option on your Account Application
    Form, you must send a written redemption request to your Shareholder
    Servicing Agent, if applicable, or to State Street Bank and Trust Company at
    the following address:

    State Street Bank and Trust Company
    c/o The One Group
    P.O. Box 8528
    Boston, MA 02266-8528

- -   You may request redemption forms by calling The One Group Services Company
    at 1-800-480-4111.

- -   State Street Bank and Trust Company may require that the signature on your
    redemption request be guaranteed by a commercial bank, a member of a
    domestic stock exchange, or a member of the Securities Transfer Association
    Medallion Program or the Stock Exchange Medallion Program, unless:

    1. the redemption is for $50,000 worth of shares or less;

    2. the redemption is payable to the shareholder of record;

    3. the redemption check is mailed to the shareholder at the record address;
       or

    4. the redemption is payable by wire or bank transfer (ACH) to a
       pre-existing bank account.

- -   On the Account Application Form you may elect to have the redemption
    proceeds mailed or wired to:

    1. designated commercial bank; or

    2. State Street Bank and Trust Company or your Shareholder Servicing Agent.

- -   Your redemption proceeds will ordinarily be paid within seven days after
    receipt of the redemption request. However, the Funds will attempt to honor
    requests for next day payment on redemptions, if the request is received
    before 12:30 p.m., ET.

- -   The Funds will attempt to honor requests for payments in two business days,
    if the redemption request is received after the time listed above.

WHAT WILL MY SHARES BE WORTH?

- -   The NAV of shares of the Funds is expected to remain constant at $1.00 per
    share, although there is no assurance that this will always be the case.



                                       21
<PAGE>   379
- -   You will receive the NAV calculated after your redemption request is
    received. Please read "How Much Do Shares Cost?"

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.

- -   Call your Shareholder Servicing Agent or State Street Bank and Trust Company
    at 1-800-480-4111 to relay your redemption request.

- -   Your redemption proceeds will be mailed or wired to the commercial bank
    account you designated on your Account Application Form.

   
- -   One Group uses reasonable procedures to confirm that instructions given by
    telephone are genuine. These procedures include recording telephone
    instructions and asking for personal identification. If these procedures are
    followed, One Group will not be responsible for any loss, liability, cost or
    expense of acting upon unauthorized or fraudulent instructions; you bear the
    risk of loss.
    

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

- -   All redemptions will be for cash. The redemption price of shares is expected
    to remain constant at $1.00 per share, although there is no assurance that
    this will always be the case.

   
- -   If you redeem shares for which you paid by check, and One Group has not yet
    received payment on the check, One Group will delay forwarding your
    redemption proceeds for 10 or more days until payment has been collected
    from your bank.

- -   One Group may suspend your ability to redeem when:
    

    1. Trading on the NYSE is restricted.

    2. The NYSE is closed (other than weekend and holiday closings).

    3. The SEC has permitted a suspension.

    4. An emergency exists.

The Statement of Additional Information offers more details about this process.

- -   You generally will recognize a gain or loss on a redemption for Federal
    income tax purposes. You should talk to your tax adviser before making a
    redemption.

SHAREHOLDER INFORMATION

VOTING RIGHTS

The Funds do not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change a Fund's fundamental investment objective, or approve an
investment advisory contract.



                                       22
<PAGE>   380

   
As a Fund shareholder, you have one vote for each share that you own. Each Fund
and each class of shares within each Fund, votes separately on matters relating
solely to that Fund or class, or which affect that Fund or class differently.
However, all shareholders will have equal voting rights on matters that affect
all shareholders equally.

BANK ONE CORPORATION (One First National Plaza, Chicago, Illinois, 60670),
through its affiliates, may be deemed for purposes of the Investment Company Act
of 1940, to control the Treasury Only Money Market Fund and Government Money
Market Fund. This is because as of December 1, 1998, BANK ONE CORPORATION or its
affiliates possessed the power to vote substantially all of the shares of the
Funds.
    

DIVIDEND POLICIES

DIVIDENDS

The Funds generally declare dividends on each business day. Dividends are
distributed on the first business day of each month. Capital gains, if any, for
all Funds are distributed at least annually. DIVIDENDS PAYABLE ON SHARES OF THE
GOVERNMENT MONEY MARKET FUND AND THE TREASURY ONLY MONEY MARKET FUND, AND ON
CLASS I SHARES WILL BE MORE THAN THOSE PAYABLE ON CLASS A SHARES. THIS IS
BECAUSE CLASS A SHARES HAVE HIGHER DISTRIBUTION EXPENSES.

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund AND CLASS, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.

TAX TREATMENT OF THE FUNDS

TAX STATUS OF THE FUND

Each Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Funds qualify, as they have in the past, they will
pay no federal income tax on the earnings they distribute to shareholders.

TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of Fund shares will generally produce either a
taxable gain or a loss. You are responsible for any tax liabilities generated by
your transactions.

   
TAXATION OF DISTRIBUTIONS -- ALL FUNDS OTHER THAN ONE GROUP MUNICIPAL CASH
MANAGEMENT FUND
    

Each Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gain) to investors on at
least an annual basis. Dividends you receive from a Fund, whether reinvested or
received in cash, will be taxable to you. Dividends from a Fund's net investment
income will be taxable as ordinary income and dividends from a Fund's long-term
capital gains will be taxable to you as such, regardless of how long you have
held the shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

   
TAXATION OF DISTRIBUTIONS -- ONE GROUP MUNICIPAL CASH MANAGEMENT FUND
    



                                       23
<PAGE>   381
   

The Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gain) to investors on at
least an annual basis. The Fund may pay "exempt-interest dividends" if at least
50% of the value of Fund assets at the end of each quarter of the Fund's taxable
year consists of obligations the interest on which is excludable from gross
income. Exempt-interest dividends are generally excludable from an investor's
gross income for regular Federal income tax purposes. However, the receipt of
exempt-interest dividends may cause recipients of Social Security or Railroad
Retirement benefits to be taxed on a portion of such benefits. In addition, the
receipt of exempt-interest dividends may result in liability for Federal
alternative minimum tax and for state and local taxes, both for individual and
corporate shareholders. Corporate shareholders will be required to take the
interest on municipal securities into account in determining their alternative
minimum taxable income.
    

   
    

TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Funds provide you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Funds or their shareholders.

SHAREHOLDER INQUIRIES

If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.

REPORTING

   
In March and September you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.
    

ORGANIZATION AND MANAGEMENT OF THE FUNDS

THE FUNDS

   
Each Fund is a series of One Group, an open-end management investment company.
One Group currently consists of 49 separate Funds. SEVEN of the Funds are
described in this prospectus; the other Funds are described in separate
prospectuses. Each Fund described in this prospectus is diversified. Each Fund
is supervised by the Board of Trustees.
    

THE BOARD OF TRUSTEES

   
The Trustees oversee the management and administration of the Funds. The
Trustees are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Funds
to the officers of One Group.
    

THE ADVISOR



                                       24
<PAGE>   382

   
Banc One Investment Advisors makes the day-to-day investment decisions for the
Funds and continuously reviews, supervises and administers the Funds' investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to The One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets. For the fiscal year ended June
30, 1998, the Government Money Market Fund and Treasury Only Money Market Fund
paid investment advisory fees of .08% of each Fund's average daily net assets.
The Cash Management Money Market Fund, the Treasury Prime Cash Management Money
Market Fund, the Treasury Cash Management Money Market Fund, the U.S. Government
Securities Cash Management Money Market Fund and the Municipal Cash Management
Money Market Fund paid investment advisory fees of .16%, .15%, .17%, .18%, and
 .17%, respectively, of each Fund's average daily net assets as of December 31,
1998.
    

THE DISTRIBUTOR

The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Funds and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.

THE ADMINISTRATOR AND SUB-ADMINISTRATOR

The One Group Services Company also serves as the Funds' administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory compliance and
reporting. For these services, The One Group Services Company receives an annual
fee of .05% of each Fund's average daily net assets. The fee is calculated daily
and paid monthly. Banc One Investment Advisors, the Sub-Administrator, provides
office space, equipment, and facilities, as well as legal and regulatory
support.

THE TRANSFER AGENT, CUSTODIAN, AND SUB-CUSTODIAN

State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528, or
your Shareholder Servicing Agent, if appropriate, handles shareholder record
keeping and statements, distributes dividends, and processes buy and sell
requests. As the Funds' custodian, State Street holds the Funds' assets, settles
all portfolio trades and assists in calculating the Funds' net asset values.
Bank One Trust Company, N.A. serves as sub-custodian in connection with the
Funds' securities lending activities under an agreement with State Street Bank
and Trust Company. Bank One Trust Company, N.A. is paid a fee for this service.

YEAR 2000

   
Preparing for the Year 2000 is a high priority for One Group. Both The One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
The One Group. Year 2000 remediation efforts are directed toward both
information technology and non-information technology systems. Non-information
technology systems include elevators, photocopy machines, and facsimile
machines, and should have no significant impact on the delivery of services to
One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.

Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.
    



                                       25
<PAGE>   383

   
Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipates that the move to Year 2000 will have a material impact on
their ability to continue to provide the Funds with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.
    



                                       26
<PAGE>   384

DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The Funds invest in a variety of securities and employ a number of investment
techniques. Each security and technique involves certain risks. What follows is
a list of the securities and techniques utilized by the Funds, as well as the
risks inherent in their use. Fixed income securities are primarily influenced by
market, credit and prepayment risks, although certain securities may be subject
to additional risks. For a more complete discussion, please see the Statement of
Additional Information. Following the table is a more complete discussion of
risk.

<TABLE>
<CAPTION>
         FUND NAME                                                                   FUND CODE
<S>                                                                                  <C>
   
         One Group(R) Government Money Market Fund                                         1
         One Group(R) Treasury Only Money Market Fund                                      2
         ONE GROUP(R) TREASURY CASH MANAGEMENT MONEY MARKET FUND                           3
         ONE GROUP(R) TREASURY PRIME CASH MANAGEMENT MONEY MARKET FUND                     4
         ONE GROUP(R) U.S. GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET FUND         5
         ONE GROUP(R) CASH MANAGEMENT MONEY MARKET FUND                                    6
         ONE GROUP(R) MUNICIPAL CASH MANAGEMENT MONEY MARKET FUND                          7
</TABLE>
    

<TABLE>
<CAPTION>
INSTRUMENT                                                             FUND CODE           RISK TYPE
- ----------                                                             ---------           ---------
<S>                                                                    <C>                   <C>
U.S. TREASURY OBLIGATIONS: Bills, notes, and bonds.                       1-7                Market

U.S. GOVERNMENT AGENCY SECURITIES: Securities issued by                  1,5-7               Market
agencies and instrumentalities of the U.S. Government.                                       Credit
These include Ginnie Mae, Fannie Mae, and Freddie Mac.

REPURCHASE AGREEMENTS: The purchase of a security and the               1,3,5-7              Credit
simultaneous commitment to return the security to the                                        Market
seller at an agreed upon price on an agreed upon date. This                                 Liquidity
is treated as a loan.

   
    

   
SECURITIES LENDING: The lending of up to 33 1/3% of the                 1,2,5-7              Credit
Fund's total assets. In return the Fund will receive cash,                                   Market
other securities, and/or letters of credit.                                                 Leverage
    

WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS: Purchase or               1-7                Market
contract to purchase securities at a fixed price for                                        Leverage
delivery at a future date.                                                                  Liquidity

   
INVESTMENT COMPANY SECURITIES: Shares of other mutual funds,            1,3,5-7              Market
including One Group money market funds of One Group and
other investment companies for which Banc One Investment Advisors
serves as investment advisor or administrator. Banc One Investment
Advisors will waive certain fees when investing in funds for which
it serves as investment advisor.
</TABLE>
    



                                       27
<PAGE>   385
   
<TABLE>
<S>                                                                    <C>                 <C>
EXTENDABLE COMMERCIAL NOTES: Variable rate notes which                     6                 Market
normally mature within a short period of time (e.g., 1 month)                                Credit
but which may be extended by the issuer for a maximum                                       Liquidity
maturity of thirteen months.

VARIABLE AND FLOATING RATE INSTRUMENTS: Obligations with                 1,5-7               Market
interest rates which are reset daily, weekly, quarterly or                                   Credit
some other period and which may be payable to the Fund                                      Liquidity
on demand.

MORTGAGE-BACKED SECURITIES: Debt obligations secured by real            1,3,5-7            Pre-Payment
estate loans and pools of loans.  These include collateralized                               Market
mortgage obligations ("CMOs") and Real Estate Mortgage                                       Credit
Investment Conduits ("REMICs").                                                             Regulatory

CERTIFICATES OF DEPOSIT: Negotiable instruments with a stated             6,7                MARKET
maturity.                                                                                    CREDIT
                                                                                            LIQUIDITY

TIME DEPOSITS: Non-negotiable receipts issued by a bank in                6,7               LIQUIDITY
exchange for the deposit of funds.                                                           CREDIT
                                                                                             MARKET

BANKERS' ACCEPTANCES: Bills of exchange or time drafts drawn on           6,7                CREDIT
and accepted by a commercial bank. Maturities are generally six                             LIQUIDITY
months or less.                                                                              MARKET

COMMERCIAL PAPER: Secured and unsecured short-term promissory             6,7                CREDIT
notes issued by corporations and other entities. Maturities                                 LIQUIDITY
generally vary from a few days to nine months.                                               MARKET

DEMAND FEATURES: Securities that are subject to puts and standby        1,3,5-7              MARKET
commitments to purchase the securities at a fixed price (usually                            LIQUIDITY
with accrued interest) within a fixed period of time following                              MANAGEMENT
demand by a Fund.

MUNICIPAL SECURITIES: Securities issued by a state or political           6,7                MARKET
subdivision to obtain funds for various public purposes.                                     CREDIT
Municipal securities include private activity bonds and                                     POLITICAL
industrial development bonds, as well as General Obligation                                    TAX
Notes, Tax Anticipation Notes, Bond Anticipation Notes, Revenue                             REGULATORY
Anticipation Notes, other short-term tax-exempt obligations,
municipal leases, and obligations of municipal housing
authorities and single family revenue bonds.

SHORT-TERM FUNDING AGREEMENTS: Agreements issued by banks and              6                 MARKET
highly rated insurance companies such as Guaranteed Investment                               CREDIT
Contracts ("GICs") and Bank Investment Contracts ("BICs").                                  LIQUIDITY

RESTRICTED SECURITIES:  Securities not registered under the               6,7               LIQUIDITY
Securities Act of 1933, such as privately placed commercial                                  CREDIT
paper and Rule 144A securities.                                                              MARKET
</TABLE>
    



                                       28
<PAGE>   386

INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities in the Funds may fluctuate, as will the value of your
investment in the Funds. Certain investments are more susceptible to these risks
than others.

   
- -   CREDIT RISK. The risk that the issuer of a security, or the counterparty to
    a contract, will default or otherwise become unable to honor a financial
    obligation. Credit risk is generally higher for non-investment grade
    securities. The price and liquidity of a security can be adversely affected
    prior to actual default as its credit status deteriorates and the
    probability of default rises.
    

- -   LEVERAGE RISK. The risk associated with securities or practices that
    multiply small index or market movements into large changes in value.
    Leverage is often associated with investments in derivatives, but also may
    be embedded directly in the characteristics of other securities.

- -   LIQUIDITY RISK. The risk that certain securities may be difficult or
    impossible to sell at the time and the price that normally prevails in the
    market. The seller may have to lower the price, sell other securities
    instead or forego an investment opportunity, any of which could have a
    negative effect on fund management or performance. This includes the risk of
    missing out on an investment opportunity because the assets necessary to
    take advantage of it are tied up in less advantageous investments.

- -   MANAGEMENT RISK. The risk that a strategy used by a fund's management may
    fail to produce the intended result. This includes the risk that changes in
    the value of a hedging instrument will not match those of the asset being
    hedged. Incomplete matching can result in unanticipated risks.

- -   MARKET RISK. The risk that the market value of a security may move up and
    down, sometimes rapidly and unpredictably. These fluctuations may cause a
    security to be worth less than the price originally paid for it, or less
    than it was worth at an earlier time. Market risk may affect a single
    issuer, industry, sector of the economy or the market as a whole. There also
    is the risk that the current interest rate may not accurately reflect
    existing market rates. For fixed income securities, market risk is largely,
    but not exclusively, influenced by changes in interest rates. A rise in
    interest rates typically causes a fall in values, while a fall in rates
    typically causes a rise in values. Finally, key information about a security
    or market may be inaccurate or unavailable.

- -   PRE-PAYMENT RISK. The risk that the principal repayment of a security will
    occur at an unexpected time, especially that the repayment of a mortgage or
    asset-backed security occurs either significantly sooner or later than
    expected. Changes in pre-payment rates can result in greater price and yield
    volatility. Pre-payments generally accelerate when interest rates decline.
    When mortgage and other obligations are pre-paid, a Fund may have to
    reinvest in securities with a lower yield. Further, with early repayment, a
    Fund may fail to recover any premium paid, resulting in an unexpected
    capital loss.
   

- -   REGULATORY RISK. The risk associated with Federal and state laws which may
    restrict the remedies that a LENDER has when a borrower defaults on LOANS.
    These laws include restrictions on foreclosures, redemption rights after
    foreclosure, Federal and state bankruptcy and debtor relief laws,
    restrictions on "due on sale" clauses, and state usury laws.
    

INVESTMENT POLICIES

Each Fund's investment objective and the investment policies summarized below
are fundamental. This means that they cannot be changed without the consent of a
majority of the outstanding shares of the Funds. The full text of the
fundamental policies can be found in the Statement of Additional Information.



                                       29
<PAGE>   387
FUNDAMENTAL POLICIES OF EACH FUND

Each Fund:

1.  Will use its best efforts to maintain a constant net asset value of $1.00
    per share, although there is no guarantee that the Funds will be able to do
    so.

2.  Will not purchase the securities of an issuer if as a result more than 5% of
    its total assets would be invested in the securities of that issuer or the
    Fund would own more than 10% of the outstanding voting securities of that
    issuer. This does not include securities issued or guaranteed by the United
    States, its agencies or instrumentalities, and repurchase agreements
    involving these securities. This restriction applies with respect to 75% of
    a Fund's total assets. The Funds may invest the remaining 25% of their total
    assets without restriction.

3.  Will not purchase securities while borrowings (including reverse repurchase
    agreements) exceed 5% of the respective Fund's assets.

4.  Will not borrow money or issue senior securities, except that the Funds may
    borrow from banks for temporary purposes in amounts not exceeding 10% of
    their total assets at the time of the borrowing.

5.  Will not mortgage, pledge or hypothecate any assets, except in connection
    with borrowing specified in 4 above and in amounts not in excess of the
    lesser of the dollar amount borrowed or 10% of the value of the respective
    Fund's total assets at the time of its borrowing.

FUNDAMENTAL POLICIES OF SPECIFIC FUNDS

The Treasury Only Money Market Fund:

1.  Will not purchase securities other than U.S. Treasury bills, notes and other
    U.S. obligations issued or guaranteed by the U.S. Treasury.

2.  Will not invest in any securities subject to repurchase agreements.

The Government Money Market Fund:

1.  Will not purchase securities other than those issued or guaranteed by the
    U.S. government or its agencies or instrumentalities, some of which may be
    subject to repurchase agreements.

Additional investment policies can be found in the Statement of Additional
Information.



                                       30
<PAGE>   388

APPENDIX

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors determines that such securities are the equivalent
of investment grade securities. Securities that have received different ratings
from more than one agency are considered investment grade if at least one agency
has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

D-1+    Highest certainty of timely payment.
        Short-term liquidity, including internal operating factors and/or access
        to alternative sources of funds, is outstanding and safety is just below
        risk-free U.S. Treasury obligations.

D-1     Very high certainty of timely payment.
        Liquidity factors are excellent and supported by good fundamental
        protection factors. Risk factors are minor.

D-1-    High certainty of timely payment.
        Liquidity factors are strong and supported by good fundamental
        protection factors. Risk factors are very small.

STANDARD & POOR'S CORPORATION ("S&P")

A-1     Highest category of commercial paper.
        Capacity to meet financial commitment is strong. Obligations designated
        with a plus sign (+) indicate that capacity to meet financial commitment
        is extremely strong.

A-2     Issues somewhat more susceptible to adverse effects of changes in
        circumstances and economic conditions than obligations in higher rating
        categories. However, the capacity to meet financial commitments is
        satisfactory.

FITCH IBCA, INC. ("FITCH")

F-1     Highest capacity for timely repayment. Those issues rated F-1+ possess a
        particularly strong credit feature.

F-2     Satisfactory capacity for timely repayment although such capacity may be
        susceptible to adverse changes in business, economic or financial
        conditions.

MOODY'S INVESTORS SERVICE ("MOODY'S")

PRIME-1 Superior ability for repayment.

PRIME-2 Strong ability for repayment.

DESCRIPTION OF BANK RATINGS

MOODY'S

These ratings represent Moody's opinion of a bank's intrinsic safety and
soundness.



                                       31
<PAGE>   389

A       These banks possess exceptional intrinsic financial strength. Typically
        they will be major financial institutions with highly valuable and
        defensible business franchises, strong financial fundamentals, and a
        very attractive and stable operating environment.

B       These banks possess strong intrinsic financial strength. Typically, they
        will be important institutions with valuable and defensible business
        franchises, good financial fundamentals, and an attractive and stable
        operating environment.

C       These banks possess good intrinsic financial strength. Typically, they
        will be institutions with valuable and defensible business franchises.
        These banks will demonstrate either acceptable financial fundamentals
        within a stable operating environment, or better than average financial
        fundamentals within an unstable operating environment.

S&P

S&P's credit rating is a current opinion of an obligor's overall financial
capacity (its creditworthiness) to pay its financial obligation.

AAA     The highest rating assigned by S&P. The obligor's capacity to meet its
        financial commitment on the obligation is extremely strong.

AA      The obligor's capacity to meet its financial commitments on the
        obligation is very strong.

A       The obligation is somewhat more susceptible to the adverse effects of
        changes in circumstances and economic conditions than obligations in
        higher rated categories. However, the obligor's capacity to meet its
        financial commitment on the obligation is still strong.

DESCRIPTION OF INSURANCE RATINGS

MOODY'S

These ratings represent Moody's opinions of the ability of insurance companies
to pay punctually senior policyholder claims and obligations.

Aaa     Insurance companies rated in this category offer exceptional financial
        security. While the financial strength of these companies is likely to
        change, such changes as can be visualized are most unlikely to impair
        their fundamentally strong position.

Aa      These insurance companies offer excellent financial security. Together
        with the Aaa group, they constitute what are generally known as high
        grade companies. They are rated lower than Aaa companies because
        long-term risks appear somewhat larger.

A       Insurance companies rated in this category offer good financial
        security. However, elements may be present which suggest a
        susceptibility to impairment sometime in the future.

S&P

S&P's credit rating is a current opinion of the creditworthiness of an obligor
with respect to a specific financial obligation, a specific class of financial
obligations, or a specific financial program.

AAA     This is the highest rating assigned by S&P. The obligor's capacity to
        meet its financial commitment on the obligation is extremely strong.

AA      The obligor's capacity to meet its financial commitments on the
        obligation is very strong.



                                       32
<PAGE>   390

A       An obligation rated A is somewhat more susceptible to the adverse
        effects of changes in circumstances and economic conditions than
        obligations in higher rated categories. However, the obligor's capacity
        to meet its financial commitment on the obligation is still strong.

DESCRIPTION OF CORPORATE/MUNICIPAL BOND RATINGS

S&P

Investment Grade

AAA     The highest rating. The rating indicates an extremely strong capacity to
        meet its financial commitment.

AA      Differs from AAA issues only in a small degree. The obligor's capacity
        to meet its financial commitment is very strong.

A       These bonds are somewhat more susceptible to the adverse effects of
        changes in circumstances and economic conditions than debt in higher
        rated categories. However, capacity to meet its financial commitment on
        the obligation is still strong.

BBB     Exhibits adequate protection parameters.
        However, adverse economic conditions or changing circumstances are more
        likely to lead to a weakened capacity to meet its financial commitment
        on the obligation.

   
Non-Investment Grade
    

BB      Less vulnerable to non-payment than other speculative issues. However,
        these bonds face major ongoing uncertainties or exposure to adverse
        business, financial or economic conditions which could lead to
        inadequate capacity to meet financial commitment on the obligation.

B       More vulnerable to non-payment than obligations rated BB, but currently
        has the capacity to meet its financial commitment on the obligation.
        Adverse business, financial or economic conditions will likely impair
        capacity or willingness to meet its financial commitment on the
        obligation.

   
CCC     Currently vulnerable to non-payment, and is dependent upon favorable
        business, financial, and economic conditions to meet its financial
        commitment on the obligation. In the event of adverse business,
        financial, or economic conditions, they are not likely to have the
        capacity to meet their financial commitment on the obligation.
    

CC      Currently highly vulnerable to non-payment.

C       This rating may be used to cover a situation where a bankruptcy petition
        has been filed, or similar action has been taken, but payments on this
        obligation are being continued.

D       Bonds in payment default.

Ratings from AA to CCC may be modified by a plus (+) or minus (-) to show
relative standing within the major rating categories.

MOODY'S

Investment Grade

Aaa     Best quality. They carry the smallest degree of investment risk and are
        generally referred to as "gilt edged." Interest payments are protected
        by a large, or an exceptionally stable, margin and principal is secure.



                                       33
<PAGE>   391

Aa      High quality by all standards. Margins of protection may not be as large
        as in Aaa securities, fluctuation of protective elements may be greater,
        or there may be other elements present that make the long-term risks
        appear somewhat larger than in Aaa securities.

A       These bonds possess many favorable investment attributes and are to be
        considered as upper-medium grade obligations. Factors giving security to
        principal and interest are considered adequate, but elements may be
        present which suggest a susceptibility to impairment sometime in the
        future.

Baa     These bonds are considered medium-grade obligations (i.e., they are
        neither highly protected nor poorly secured). Interest payments and
        principal security appear adequate for the present but certain
        protective elements may be lacking or may be characteristically
        unreliable over any great length of time. Such bonds lack outstanding
        investment characteristics and in fact have speculative characteristics
        as well.

Non-Investment Grade

Ba      These bonds have speculative elements; their future cannot be considered
        as well assured. The protection of interest and principal payments may
        be very moderate and thereby not well safeguarded during good and bad
        times over the future.

B       These bonds lack the characteristics of a desirable investment (i.e.,
        potentially low assurance of timely interest and principal payments or
        maintenance of other contract terms over any long period of time may be
        small).

Caa     Bonds in this category have poor standing and may be in default. These
        bonds carry an element of danger with respect to principal and interest
        payments.

Ca      Speculative to a high degree and could be in default or have other
        marked shortcomings. Ca is the lowest rating.

DESCRIPTION OF MUNICIPAL NOTE RATINGS

MOODY'S

MIG1 &
 VMIG1  Short-term municipal securities rated MIG1 or VMIG1 are of the best
        quality. They have strong protection from established cash flows,
        superior liquidity support or demonstrated broad-based access to the
        market for refinancing.

MIG2 &
 VMIG2  These Short-term municipal securities are of high quality. Margins of
        protection are ample although not so large as in the preceding group.

MIG3 &
 VMIG3  Favorable quality. All security elements are accounted for, but the
        undeniable strength of the preceding grades is lacking. Liquidity and
        cash flow protection may be narrow and marketing access for refinancing
        is likely to be less well established.

S&P

An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in three years or less will likely receive a note
rating. Notes maturing beyond three years will most likely receive a long-term
debt rating.

SP-1    Strong capacity to pay principal and interest. Those issues determined
        to possess overwhelming safety characteristics will be given a plus (+)
        designation.

SP-2    Satisfactory capacity to pay principal and interest.

SP-3    Speculative capacity to pay principal and interest.



                                       34
<PAGE>   392

   
    

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") assigns ratings to specific debt instruments
with original maturities of one year or less. The TBW Short-Term ratings
specifically assess the likelihood of an untimely payment of principal and
interest.

TBW-1   Very high degree of likelihood that principal and interest will be paid
        on a timely basis.

TBW-2   While degree of safety regarding timely repayment of principal and
        interest is strong, the relative degree is not as high as for issues
        rated TBW-1.

TBW-3   Lowest investment grade category. While more susceptible to adverse
        developments than obligations with higher ratings, capacity to service
        principal and interest in a timely fashion is considered adequate.

TBW-4   Non-investment grade and, therefore, speculative.



                                       35
<PAGE>   393

Investment Advisor and Sub-Administrator
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Distributor
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Administrator
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Transfer Agent and Custodian
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

Legal Counsel
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

Independent Accountants
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215

   
THE STATEMENT OF ADDITIONAL INFORMATION CONTAINS MORE DETAILED INFORMATION ABOUT
THE FUNDS. THE CURRENT STATEMENT OF ADDITIONAL INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY
CALLING 1-800-480-4111 OR BY WRITING TO THE ONE GROUP SERVICES COMPANY AT 3435
STELZER ROAD, COLUMBUS, OHIO 43219. THE STATEMENT OF ADDITIONAL INFORMATION IS
INCORPORATED INTO THIS PROSPECTUS BY REFERENCE. THE SEC MAINTAINS A WEB SITE
(WWW.SEC.GOV) THAT CONTAINS THE STATEMENT OF ADDITIONAL INFORMATION, MATERIALS
INCORPORATED BY REFERENCE AND OTHER INFORMATION REGARDING ONE GROUP(R).
    



                                       36
<PAGE>   394
   
                            ONE GROUP(R) MUTUAL FUNDS

                            ONE GROUP INVESTOR FUNDS
    

                               COMBINED PROSPECTUS

   
                                MARCH ___ , 1999
    


                        ONE GROUP(R) INVESTOR GROWTH FUND

                   ONE GROUP(R) INVESTOR GROWTH & INCOME FUND

                       ONE GROUP(R) INVESTOR BALANCED FUND

                 ONE GROUP(R) INVESTOR CONSERVATIVE GROWTH FUND

This prospectus describes four mutual funds that invest in other mutual funds.
The funds in this prospectus pursue a variety of investment objectives,
including growth, total return, capital appreciation, and current income. The
information in this prospectus is important. Please read it carefully before you
invest, and save it for future reference.

         PLEASE REMEMBER THAT SHARES OF THE FUNDS: O ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR GUARANTEED BY BANK ONE CORPORATION OR ITS AFFILIATES; O ARE
NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY
FEDERAL OR STATE GOVERNMENTAL AGENCY; O INVOLVE INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.

         THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

                                       1
<PAGE>   395


                                TABLE OF CONTENTS
   
<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                           <C>
A BRIEF PREVIEW OF THE FUNDS................................................  1
ABOUT THE FUNDS.............................................................  2
   One Group(R)Investor Growth Fund.........................................  3   
   One Group(R)Investor Growth & Income Fund................................ 13
   One Group(R)Investor Balanced Fund....................................... 17
   One Group(R)Investor Conservative Growth Fund............................ 24
MORE ABOUT THE FUNDS........................................................ 32
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS.......................... 34
   Purchasing Fund Shares................................................... 34
   Sales Charges............................................................ 37
   Sales Charge Reductions and Waivers...................................... 39
   Exchanging Fund Shares................................................... 42
   Redeeming Fund Shares.................................................... 43
SHAREHOLDER INFORMATION..................................................... 47
   Voting Rights............................................................ 47
   Dividend Policies........................................................ 48
   Tax Treatment of the Funds............................................... 48
   Tax Treatment of Shareholders............................................ 48
   Shareholder Inquiries.................................................... 49
ORGANIZATION AND MANAGEMENT OF THE FUNDS.................................... 50
   The Funds................................................................ 50
   The Board of Trustees.................................................... 50
   The Advisor.............................................................. 50
   The Distributor.......................................................... 50
   The Administrator and Sub-Administrator.................................. 50
   The Transfer Agent, Custodian and Sub-Custodian.......................... 50
DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES.................. 52
   Investment Practices..................................................... 52
   Investment Policies...................................................... 57
APPENDIX A: DETAILS ABOUT THE UNDERLYING FUNDS' INVESTMENT PRACTICES
   AND POLICIES............................................................. 58
APPENDIX B: DESCRIPTION OF RATINGS.......................................... 66
</TABLE>
    

                                       2
<PAGE>   396


A BRIEF PREVIEW OF THE FUNDS

   
WHAT ARE THE GOALS OF ONE GROUP INVESTOR FUNDS?
    

The Funds are designed for a variety of investment objectives, including total
return, capital appreciation, current income, and long-term capital growth. Each
Fund pursues a different objective and involves different risks. Please read
about each Fund before investing.

WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?

   
The Funds normally will invest in a diversified group of One Group mutual funds,
which invest primarily in equity, fixed income and money market instruments.
Shares are available for long-term investors, including tax-advantaged
retirement accounts; the Funds should not be used for short-term trading
purposes. Each Fund's investment return is diversified by its investment in the
underlying mutual funds which invest in growth and income stocks, foreign
securities, debt securities, and cash or cash equivalents. The underlying mutual
funds in which the Funds will invest have the following characteristics:

<TABLE>
<S>                                                               <C>
One Group(R) Prime Money Market Fund                               Money Market
One Group(R) Short-Term Bond Fund                                  Fixed Income
One Group(R) Intermediate Bond Fund                                Fixed Income
One Group(R) Income Bond Fund                                      Fixed Income
One Group(R) Bond Fund                                             Fixed Income
One Group(R) Government Bond Fund                                  Fixed Income
One Group(R) Ultra Short-Term Bond Fund                            Fixed Income
One Group(R) High Yield Bond Fund                                  Fixed Income
One Group(R) Mid Cap Value Fund                                    Equity
One Group(R) International Equity Index Fund                       Equity
One Group(R) Diversified International Fund                        Equity
One Group(R) Large Cap Growth Fund                                 Equity
One Group(R) Large Cap Value Fund                                  Equity
One Group(R) Mid Cap Growth Fund                                   Equity
One Group(R) Diversified Mid Cap Fund                              Equity
One Group(R) Diversified Equity Fund                               Equity
One Group(R) Small Cap Growth Fund                                 Equity
One Group(R) Small Cap Value Fund                                  Equity
One Group(R) Equity Income Fund                                    Equity
One Group(R) Equity Index Fund                                     Equity
    
</TABLE>

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?

The investments of each Fund are concentrated in the underlying funds, so each
Fund's investment performance is directly related to the performance of the
underlying funds. Each Fund's net asset value will fluctuate with changes in the
equity and bond markets and the value of the mutual funds in which it invests.
In addition, as a matter of fundamental policy, each Fund must allocate its
investments among the underlying funds. As a result, the Funds do not have the
same flexibility to invest as a mutual fund without such constraints. An
investment in the Funds is not a deposit of BANK ONE CORPORATION or its
affiliates and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. For more information about risks,
please read "More About the Funds" and "Investment Risks."


                                       1
<PAGE>   397


WHAT CLASSES OF SHARES ARE AVAILABLE?

   
The Funds currently offer four classes of Shares: Class A, Class B, Class C and
Class I. Class A, Class B and Class C shares are offered to the general public.
Class I shares are offered to institutional investors, including affiliates of
BANK ONE CORPORATION and any bank, depository institution, insurance company,
pension plan or other organization authorized to act in fiduciary, advisory,
agency, custodial or similar capacities. The section called "How To Do Business
With The One Group Mutual Funds" will provide more information. Class I shares
are not available to Individual Retirement Accounts ("IRA").
    

HOW DO I PURCHASE AND REDEEM SHARES?

   
You may buy and redeem shares of the Funds on any day that the Funds are open
for business. Purchase and redemption procedures are explained in greater detail
in "How To Do Business With The One Group Mutual Funds." For additional
information, call The One Group Services Company at 1-800-480-4111.
    

HOW ARE DIVIDENDS PAID?

Generally, dividends are declared monthly and distributed on the first business
day of each month. Any capital gains are distributed at least annually.
Distributions are paid in additional shares of the same class unless you elect
to take the payment in cash. For a more detailed discussion of dividends, see
"Dividend Policies."

WHO MANAGES THE FUNDS?

   
Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Funds.
Banc One Investment Advisors is paid a fee for its services. Banc One Investment
Advisors also serves as the advisor to the underlying mutual funds, for which it
receives a fee.
    

                                       2
<PAGE>   398


ONE GROUP(R) INVESTOR GROWTH FUND

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation by investing primarily in a
diversified group of One Group mutual funds which invest primarily in equity
securities.

INVESTMENT STRATEGY

   
The Fund invests 80% to 100% of its total assets in twelve One Group mutual
funds of which invest primarily in equity securities, up to 20% of its total
assets in seven One Group mutual funds that invest primarily in fixed income
securities, and up to 10% of its total assets in one One Group money market
fund. The Fund also may hold cash and cash equivalents.
    

PORTFOLIO SECURITIES

The Fund will invest in the underlying mutual funds within the following range:

   
<TABLE>
<S>                                                                <C>
One Group(R) Prime Money Market Fund                                0-10%
One Group(R) Short-Term Bond Fund                                   0-20%
One Group(R) Intermediate Bond Fund                                 0-20%
One Group(R) Income Bond Fund                                       0-20%
One Group(R) Bond Fund                                              0-20%
One Group(R) High Yield Bond Fund                                   0-20%
One Group(R) Government Bond Fund                                   0-20%
One Group(R) Ultra Short-Term Bond Fund                             0-20%
One Group(R) Mid Cap Value Fund                                     0-40%
One Group(R) International Equity Index Fund                        0-40%
One Group(R) Diversified International Fund                         0-40%
One Group(R) Large Cap Growth Fund                                  0-48%
One Group(R) Large Cap Value Fund                                   0-55%
One Group(R) Mid Cap Growth Fund                                    0-40%
One Group(R) Diversified Mid Cap Fund                               0-40%
One Group(R) Diversified Equity Fund                                0-50%
One Group(R) Small Cap Growth Fund                                  0-40%
One Group(R) Small Cap Value Fund                                   0-40%
One Group(R) Equity Income Fund                                     0-50%
One Group(R) Equity Index Fund                                      0-50%
    
</TABLE>

RISK CONSIDERATIONS

The Fund's investments are concentrated in other mutual funds, so the Fund's
investment performance is directly related to the performance of those mutual
funds. In addition, as a matter of fundamental policy, the Fund must allocate
its investments primarily among the mutual funds. As a result, the Fund's
investment flexibility is limited. The Fund may invest in a mutual fund which
invests in medium or lower grade bonds, which can be volatile. Medium and lower
grade bonds are speculative. See "Special Risk Considerations."



                                       3
<PAGE>   399


   
<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                            CLASS A         CLASS B        CLASS C     CLASS I
<S>                                                       <C>                 <C>            <C>          <C>
Maximum Sales Charge Imposed on
  Purchases (as a percentage of
  offering price)                                                5.25%           none           none        none
Maximum Sales Charge Imposed on
  Purchases
Maximum Contingent Deferred Sales
  Charge (as a percentage of original
  purchase price or redemption
  proceeds, as applicable)                                  none(2)             5.00%          1.00%        none
Redemption Fees                                               none               none           none        none
Exchange Fees                                                 none               none           none        none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily
  net assets)(3)
Investment Advisory Fees                                          .05%           .05%           .05%        .05%
12b-1 Fees (after fee waiver)(4)                                  .25%          1.00%          1.00%        none
Other Expenses                                                    .15%           .15%           .15%        .15%
Total Fund Operating Expenses
  (after fee waivers)(5)                                          .45%          1.20%          1.20%        .20%
</TABLE>
    

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long-term Class A, Class B, and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A.

(5)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be .55% for Class A shares.

The Fund will indirectly pay a portion of the expenses incurred by the
underlying funds. The following chart provides the expense ratio for each
underlying fund in which the Fund invests (based on the current fund
prospectus). Some of these expense ratios may include a voluntary reduction of
investment advisory fees.

<TABLE>
<CAPTION>
NAME OF UNDERLYING FUND                                           EXPENSE RATIO
- -----------------------                                           -------------

   
<S>                                                                <C>
One Group(R) Prime Money Market Fund                                        .52%
One Group(R) Short-Term Bond Fund                                           .53%
One Group(R) Intermediate Bond Fund                                         .58%
One Group(R) Income Bond Fund                                               .62%
One Group(R) Bond Fund                                                      .60%
One Group(R) High Yield Bond Fund                                           .87%
One Group(R) Government Bond Fund                                           .69%
One Group(R) Ultra Short-Term Bond Fund                                     .55%
One Group(R) Mid Cap Value Fund                                             .96%
One Group(R) International Equity Index Fund                                .95%
</TABLE>
    

                                       4
<PAGE>   400

   

<TABLE>
<S>                                                                        <C>  
One Group(R) Diversified International Fund                                1.02%
One Group(R) Large Cap Growth Fund                                          .94%
One Group(R) Large Cap Value Fund                                          1.00%
One Group(R) Mid Cap Growth Fund                                           1.00%
One Group(R) Diversified Mid Cap Fund                                       .86%
One Group(R) Diversified Equity Fund                                        .97%
One Group(R) Small Cap Growth Fund                                         1.05%
One Group(R) Small Cap Value Fund                                           .91%
One Group(R) Equity Income Fund                                             .96%
One Group(R) Equity Index Fund                                              .36%
</TABLE>

After combining the total operating expenses of the Fund with those of the
underlying funds, the estimated average weighted expense ratio for Class A
shares is 1.30%, for Class B shares is 2.05%, for Class C shares is 2.05%, and
for Class I shares is 1.05%. The following examples were calculated using the
combined total operating expenses.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charges; (2) 5% annual return; and
(3) redemption at the end of each time period.
   
<TABLE>
<CAPTION>
                                     1 YEAR         3 YEARS        5 YEARS     10 YEARS
                                     ------         -------        -------     --------
<S>                                   <C>             <C>           <C>          <C> 
Class A                               $65             $92           $120         $201
Class A (without fee waiver)          $67             $97           $129         $219
Class B                               $71             $94           $130         $219
Class B (without fee waiver)          $72             $96           $134         $229
Class C                               $31             $64           $110         $238
Class C (without fee waiver)          $32             $66           $114         $245
Class I                               $11             $33           $ 58         $128
Class I (without fee waiver)          $11             $36           $ 62         $136
    
</TABLE>

Assuming no redemption the end of each time period, the dollar amounts in the
above example would be as follows:

   
<TABLE>
<CAPTION>
                                         1 YEAR          3 YEARS       5 YEARS      10 YEARS
                                         ------          -------       -------      --------
<S>                                        <C>             <C>           <C>          <C> 
Class A                                    $65             $97           $120         $201
Class A (without fee waiver)               $67             $97           $129         $219
Class B                                    $21             $64           $110         $219
Class B (without fee waiver)               $22             $66           $114         $229 
Class C                                    $21             $64           $110         $238
Class C (without fee waiver)               $22             $66           $114         $245
Class I                                    $11             $33           $ 58         $128
Class I (without fee waiver)               $11             $36           $ 62         $136
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       5
<PAGE>   401


ONE GROUP(R) INVESTOR GROWTH FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
<TABLE>
<CAPTION>
                                                                            DECEMBER 10, 1996
                                                            YEAR ENDED           THROUGH
                                                             JUNE 30,           JUNE 30,
CLASS I                                                        1998              1997(a)
- -------                                                        ----              -------
<S>                                                          <C>               <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                         $ 11.25           $ 10.00
Investment Activities:
  Net investment income                                         0.12              0.09
  Net realized and unrealized gains (losses)
    from investments                                            2.49              1.25
Total from Investment Activities                                2.61              1.34
Distributions:
  From net investment income                                   (0.12)            (0.09)
  Net realized gain                                            (0.35)            --
Total Distributions                                            (0.47)            (0.09)
NET ASSET VALUE, END OF PERIOD                               $ 13.39           $ 11.25
Total Return                                                   23.81%            13.50%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                          $86,355           $31,318
  Ratio of expenses to average net assets                       0.20%             0.20%(c)
  Ratio of net investment income to average
    net assets                                                  1.04%             1.70%(c)
  Ratio of expenses to average net assets*                      0.36%             0.77%(c)
  Ratio of net investment income to average
    net assets*                                                 0.88%             1.13%(c)
  Portfolio turnover(d)                                         4.05%            18.49%
</TABLE>

*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated. (a) Period
from commencement of operations. (b) Not annualized. (c) Annualized. (d)
Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.

                                       6
<PAGE>   402
   
ONE GROUP(R) INVESTOR GROWTH FUND FINANCIAL HIGHLIGHTS
    

<TABLE>
<CAPTION>

                                                                                                  DECEMBER 10, 1996
                                                                                   YEAR ENDED          THROUGH
                                                                                    JUNE 30,          JUNE 30,
CLASS A                                                                               1998             1997(a)
- -------                                                                               ----             -------
<S>                                                                                 <C>               <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                $11.21            $10.00
Investment Activities:
  Net investment income                                                               0.10              0.07
  Net realized and unrealized gains (losses)
    from investments                                                                  2.47              1.21
Total from Investment Activities                                                      2.57              1.28
Distributions:
  From net investment income                                                         (0.10)            (0.07)
  Net realized gain                                                                  (0.35)            --
Total Distributions                                                                  (0.45)            (0.07)
NET ASSET VALUE, END OF PERIOD                                                      $13.33            $11.21
Total Return (Excludes Sales Charge)                                                 23.44%            12.84%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                $55,057            $4,439
  Ratio of expenses to average net assets                                             0.45%             0.46%(c)
  Ratio of net investment income to average
    net assets                                                                        0.78%             1.82%(c)
  Ratio of expenses to average net assets*                                            0.70%             1.62%(c)
  Ratio of net investment income to average
    net assets*                                                                       0.53%             0.66%(c)
  Portfolio turnover(d)                                                               4.05%            18.49%
</TABLE>

*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated. (a) Period
from commencement of operations. (b) Not annualized. (c) Annualized. (d)
Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.

                                       7
<PAGE>   403
   
ONE GROUP(R) INVESTOR GROWTH FUND FINANCIAL HIGHLIGHTS
    


<TABLE>
<CAPTION>
                                                                                                  DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                   JUNE 30,           JUNE 30,
CLASS B                                                                              1998              1997(a)
- -------                                                                              ----              -------
<S>                                                                                 <C>                <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                $11.34             $10.00
Investment Activities:
  Net investment income                                                               0.02               0.04
  Net realized and unrealized gains (losses)
    from investments                                                                  2.48               1.34
Total from Investment Activities                                                      2.50               1.38
Distributions:
  From net investment income                                                         (0.02)             (0.04)
  Net realized gains                                                                 (0.35)             --
Total Distributions                                                                  (0.37)             (0.04)
NET ASSET VALUE, END OF PERIOD                                                      $13.47             $11.34
Total Return (Excludes Sales Charge)                                                 22.52%             13.88%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                $70,515             $7,651
  Ratio of expenses to average net assets                                             1.20%              1.20%(c)
  Ratio of net investment income to average
    net assets                                                                        0.04%              0.97%(c)
  Ratio of expenses to average net assets*                                            1.35%              2.18%(c)
  Ratio of net investment income to average
    net assets*                                                                      (0.11)%            (0.01%)(c)
  Portfolio turnover(d)                                                               4.05%             18.49%
</TABLE>

*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated. (a) Period
from commencement of operations. (b) Not annualized. (c) Annualized. (d)
Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
<PAGE>   404
   
ONE GROUP(R) INVESTOR GROWTH FUND FINANCIAL HIGHLIGHTS
    

<TABLE>
<CAPTION>
                                                                                    YEAR ENDED
                                                                                     JUNE 30,
CLASS C                                                                               1998(a)
- -------                                                                               -------
<S>                                                                                    <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                   $11.25
Investment Activities:
  Net investment income                                                                  0.02
  Net realized and unrealized gains (losses) from investments                            2.45
Total from Investment Activities                                                         2.47
Distributions:
  Net investment income                                                                 (0.03)
  Net realized gains                                                                    (0.35)
Total Distributions                                                                     (0.38)
NET ASSET VALUE, END OF PERIOD                                                         $13.34
Total Return (Excludes Sales Charge)                                                    22.42%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                    $8,772
  Ratio of expenses to average net assets                                                1.20%
  Ratio of net investment income to average net assets                                   0.04%
  Ratio of expenses to average net assets*                                               1.35%
  Ratio of net investment income to average net assets*                                 (0.11)%
  Portfolio turnover (b)                                                                 4.05%
</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 on July 1, 1997. (b)Portfolio turnover is
calculated on the basis of the Fund as a whole without distinguishing among the
classes of shares issued.

                                       8
<PAGE>   405

<PAGE>   406


   
ONE GROUP(R) INVESTOR GROWTH & INCOME FUND
    

INVESTMENT OBJECTIVE

   
The Fund seeks long-term capital appreciation and growth of income by investing
primarily in a diversified group of One Group mutual funds which invest
primarily in equity securities.
    

INVESTMENT STRATEGY

   
The Fund invests 60% to 80% of its total assets in twelve One Group mutual funds
of which invest primarily in equity securities, 20% to 40% of its total assets
in seven One Group mutual funds that invest primarily in fixed income
securities, and up to 10% of its total assets in one One Group money market
fund. The Fund also may hold cash and cash equivalents.
    

PORTFOLIO SECURITIES

The Fund will invest in the underlying mutual funds within the following ranges:

   
<TABLE>
<S>                                                                     <C>  
One Group(R) Prime Money Market Fund                                    0-10%
One Group(R) Short-Term Bond Fund                                       0-30%
One Group(R) Intermediate Bond Fund                                     0-30%
One Group(R) Income Bond Fund                                           0-30%
One Group(R) Bond Fund                                                  0-30%
One Group(R) High Yield Bond Fund                                       0-30%
One Group(R) Government Bond Fund                                       0-30%
One Group(R) Ultra Short-Term Bond Fund                                 0-30%
One Group(R) Mid Cap Value Fund                                         0-40%
One Group(R) International Equity Index Fund                            0-40%
One Group(R) Diversified International Fund                             0-40%
One Group(R) Large Cap Growth Fund                                      0-50%
One Group(R) Large Cap Value Fund                                       0-60%
One Group(R) Mid Cap Growth Fund                                        0-40%
One Group(R) Diversified Mid Cap Fund                                   0-40%
One Group(R) Diversified Equity Fund                                    0-60%
One Group(R) Small Cap Growth Fund                                      0-40%
One Group(R) Small Cap Value Fund                                       0-40%
One Group(R) Equity Income Fund                                         0-60%
One Group(R) Equity Index Fund                                          0-60%
    
</TABLE>

RISK CONSIDERATIONS

The Fund's investments are concentrated in other mutual funds, so the Fund's
investment performance is directly related to the performance of those mutual
funds. In addition, as a matter of fundamental policy, the Fund must allocate
its investments primarily among the mutual funds. As a result, the Fund's
investment flexibility is limited. The Fund may invest in a mutual fund which
invests in medium or lower grade bonds, which can be volatile. Medium and lower
grade bonds are speculative. See "Special Risk Considerations."

                                       10
<PAGE>   407


SHAREHOLDER EXPENSES

<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES(1)                              CLASS A        CLASS B       CLASS C      CLASS I
<S>                                                               <C>           <C>           <C>         <C>
   
Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)                             5.25%          none          none         none
    
Maximum Contingent Deferred Sales Charge
  (as a percentage of original
  purchase price or redemption proceeds,
  as applicable)                                                 none(2)         5.00%         1.00%        none
Redemption Fees                                                   none           none          none         none
Exchange Fees                                                     none           none          none         none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily
  net assets)(3)
Investment Advisory Fees                                          .05%           .05%          .05%         .05%
12b-1 Fees (after fee waiver)(4)                                  .25%           1.00%         1.00%        none
Other Expenses                                                    .15%           .15%          .15%         .15%
Total Operating Expenses (after
  fee waivers)(5)                                                 .45%           1.20%         1.20%        .20%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long-term Class A, Class B, and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A.

(5)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be .55% for Class A shares.

The Fund will indirectly pay a portion of the expenses incurred by the
underlying funds. The following chart provides the expense ratio for each
underlying fund (based on the current fund prospectus). Some of these expense
ratios may include a voluntary reduction of investment advisory fees.

<TABLE>
<CAPTION>
NAME OF UNDERLYING FUND                                            EXPENSE RATIO

   
<S>                                                                     <C> 
One Group(R) Prime Money Market Fund                                    .52%
One Group(R) Short-Term Bond Fund                                       .53%
One Group(R) Intermediate Bond Fund                                     .58%
One Group(R) Income Bond Fund                                           .62%
One Group(R) Bond Fund                                                  .60%
One Group(R) High Yield  Bond Fund                                      .87%
One Group(R) Government Bond Fund                                       .69%
One Group(R) Ultra Short-Term Bond Fund                                 .55%
One Group(R) Mid Cap Value Fund                                         .96%
One Group(R) International Equity Index Fund                            .95%
One Group(R) Diversified International Fund                            1.02%
One Group(R) Large Cap Growth Fund                                      .94%
One Group(R) Large Cap Value Fund                                      1.00%
One Group(R) Mid Cap Growth Fund                                       1.00%
    
</TABLE>


                                       11
<PAGE>   408

   
<TABLE>
<S>                                                                     <C> 
One Group(R) Diversified Mid Cap Fund                                   .86%
One Group(R) Diversified Equity Fund                                    .97%
One Group(R) Small Cap Growth Fund                                     1.05%
One Group(R) Small Cap Value Fund                                       .91%
One Group(R) Equity Income Fund                                         .96%
One Group(R) Equity Index Fund                                          .36% 
</TABLE>

After combining the total operating expenses of the Fund with those of the
underlying funds, the estimated average weighted expense ratios for Class A
shares is 1.28%, for Class B shares is 2.03%, for Class C shares is 2.03%, and
for Class I shares is 1.03%. The following examples were calculated using
combined total operating expenses.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charges; (2) 5% annual return; and
(3) redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                              1 YEAR         3 YEARS        5 YEARS     10 YEARS
                                                              ------         -------        -------     --------
   
<S>                                                            <C>             <C>           <C>          <C> 
Class A                                                        $65             $91           $119         $199
Class A (without fee waiver)                                   $67             $96           $128         $218
Class B                                                        $71             $94           $129         $217
Class B (without fee waiver)                                   $71             $96           $133         $228
Class C                                                        $31             $64           $109         $236
Class C (without fee waiver)                                   $31             $66           $113         $244
Class I                                                        $11             $33           $ 57         $126
Class I (without fee waiver)                                   $11             $35           $ 61         $135
    
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                              1 YEAR         3 YEARS        5 YEARS     10 YEARS
                                                              ------         -------        -------     --------

   
<S>                                                            <C>             <C>           <C>          <C> 
Class A                                                        $65             $91           $119         $199
Class A (without fee waiver)                                   $67             $96           $128         $218
Class B                                                        $21             $64           $109         $217
Class B (without fee waiver)                                   $21             $66           $113         $228
Class C                                                        $21             $64           $109         $236
Class C (without fee waiver)                                   $21             $66           $113         $244
Class I                                                        $11             $33           $ 57         $126
Class I (without fee waiver)                                   $11             $35           $ 61         $135
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 Years" examples above reflect the conversion.

These examples are designed to assist you in understanding the costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       12
<PAGE>   409


 ONE GROUP(R) INVESTOR GROWTH & INCOME FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
                                                                                                  DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                   JUNE 30,           JUNE 30,
CLASS I                                                                              1998              1997(a)
- -------                                                                              ----              -------

<S>                                                                                     <C>              <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                                                    $ 10.93          $ 10.00
Investment Activities:
  Net investment income                                                                    0.25             0.15
  Net realized and unrealized gains from investments                                       1.92             0.93
Total from Investment Activities                                                           2.17             1.08
Distributions:
  From net investment income                                                              (0.25)           (0.15)
  Net realized gain                                                                       (0.28)           --
Total Distributions                                                                       (0.53)           (0.15)
NET ASSET VALUE, END OF PERIOD                                                          $ 12.57          $ 10.93
Total Return                                                                              20.34%           10.87%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                     $98,060          $43,660
  Ratio of expenses to average net assets                                                  0.20%            0.20%(c)
  Ratio of net investment income to average net assets                                     2.17%            2.78%(c)
  Ratio of expenses to average net assets*                                                 0.34%            0.66%(c)
  Ratio of net investment income to average net assets*                                    2.03%            2.32%(c)
  Portfolio turnover(d)                                                                   11.38%           18.07%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.

                                       13
<PAGE>   410


<TABLE>
<CAPTION>
                                                                                                  DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                   JUNE 30,           JUNE 30,
CLASS A                                                                              1998              1997(a)
- -------                                                                              ----              -------
<S>                                                                                   <C>                 <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                  $ 11.02             $10.00
Investment Activities:
  Net investment income                                                                  0.22               0.12
  Net realized and unrealized gains from investments                                     1.95               1.02
Total from Investment Activities                                                         2.17               1.14
Distributions:
  From net investment income                                                            (0.22)             (0.12)
  Net realized gain                                                                     (0.28)             --
Total Distributions                                                                     (0.50)             (0.12)
NET ASSET VALUE, END OF PERIOD                                                        $ 12.69             $11.02
Total Return (Excludes Sales Charge)                                                    20.18%             11.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)                                                     $39,874             $4,262
Ratio of expenses to average net assets                                                  0.45%              0.46%(c)
Ratio of net investment income to average net assets                                     1.91%              2.67%(c)
Ratio of expenses to average net assets*                                                 0.67%              1.26%(c)
Ratio of net investment income to average net assets*                                    1.69%              1.87%(c)
Portfolio turnover(d)                                                                   11.38%             18.07%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.

                                       14
<PAGE>   411


ONE GROUP(R) INVESTOR GROWTH & INCOME FUND  FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                                                                  DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                    JUNE 30,          JUNE 30,
CLASS B                                                                               1998             1997(a)
- -------                                                                               ----             -------
<S>                                                                                   <C>                <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                  $ 11.00            $10.00
Investment Activities:
  Net investment income                                                                  0.14              0.09
  Net realized and unrealized gains from investments                                     1.92              1.00
Total from Investment Activities                                                         2.06              1.09
Distributions:
  From net investment income                                                            (0.14)            (0.09)
  Net realized gain                                                                     (0.28)            --
Total Distributions                                                                     (0.42)            (0.09)
NET ASSET VALUE, END OF PERIOD                                                        $ 12.64            $11.00
Total Return (Excludes Sales Charge)                                                    19.13%            11.02%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                $85,468            $8,896
  Ratio of expenses to average net assets                                                1.20%             1.21%(c)
  Ratio of net investment income to average net assets                                   1.15%             1.94%(c)
  Ratio of expenses to average net assets*                                               1.32%             1.89%(c)
  Ratio of net investment income to average net assets*                                  1.03%             1.26%(c)
  Portfolio turnover(d)                                                                 11.38%            18.07%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.


                                       15
<PAGE>   412
<TABLE>
<CAPTION>
                                                                                                     YEAR ENDED
                                                                                                      JUNE 30,
CLASS C                                                                                                1998(a)
- -------                                                                                                -------
<S>                                                                                                        <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                                       $10.93
Investment Activities:
  Net investment income                                                                                      0.14
  Net realized and unrealized gains (losses) from investments                                                1.90
Total from Investment Activities                                                                             2.04
Distributions:
  Net investment income                                                                                     (0.15)
  Net realized gains                                                                                        (0.28)
Total Distributions                                                                                         (0.43)
NET ASSET VALUE, END OF PERIOD                                                                             $12.54
Total Return (Excludes Sales Charge)                                                                        19.08%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                                     $6,429
  Ratio of expenses to average net assets                                                                    1.20%
  Ratio of net investment income to average net assets                                                       1.14%
  Ratio of expenses to average net assets*                                                                   1.31%
  Ratio of net investment income to average net assets*                                                      1.03%
  Portfolio turnover (b)                                                                                    11.38%
</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 on July 1,
         1997. (b)Portfolio turnover is calculated on the basis of the Fund as a
         whole without distinguishing among the classes of shares issued.


                                       16


<PAGE>   413


ONE GROUP(R) INVESTOR BALANCED FUND

INVESTMENT OBJECTIVE

The Fund seeks high total return consistent with the preservation of capital by
investing primarily in a diversified group of The One Group mutual funds which
invest primarily in equity and fixed income securities.

INVESTMENT STRATEGY

   
The Fund invests 40% to 60% of its total assets in twelve One Group mutual funds
which invest primarily in equity securities, 40% to 60% of its total assets in
seven One Group mutual funds which invest primarily in fixed income securities,
and up to 10% of its total assets in one One Group money market fund. The Fund
also may hold cash and cash equivalents.
    

PORTFOLIO SECURITIES

The Fund will invest in the underlying mutual funds within the following range:

   
<TABLE>
<S>                                                           <C>  
One Group(R) Prime Money Market Fund                          0-10%
One Group(R) Short-Term Bond Fund                             0-50%
One Group(R) Intermediate Bond Fund                           0-50%
One Group(R) Income Bond Fund                                 0-50%
One Group(R) Bond Fund                                        0-50%
One Group(R) High Yield Bond Fund                             0-30%
One Group(R) Government Bond Fund                             0-50%
One Group(R) Ultra Short-Term Bond Fund                       0-50%
One Group(R) Mid Cap Value Fund                               0-30%
One Group(R) International Equity Index Fund                  0-30%
One Group(R) Diversified International Fund                   0-30%
One Group(R) Large Cap Growth Fund                            0-40%
One Group(R) Large Cap Value Fund                             0-50%
One Group(R) Mid Cap Growth Fund                              0-30%
One Group(R) Diversified Mid Cap Fund                         0-30%
One Group(R) Diversified Equity Fund                          0-40%
One Group(R) Small Cap Growth Fund                            0-30%
One Group(R) Small Cap Value Fund                             0-30%
One Group(R) Equity Income Fund                               0-40%
One Group(R) Equity Index Fund                                0-40%
    
</TABLE>

RISK CONSIDERATIONS

The Fund's investments are concentrated in other mutual funds, so the Fund's
investment performance is directly related to the performance of those mutual
funds. In addition, as a matter of fundamental policy, the Fund must allocate
its investments primarily among the mutual funds. As a result, the Fund's
investment flexibility is limited. The Fund may invest in a mutual fund which
invests in medium or lower grade bonds, which can be volatile. See "Special Risk
Considerations."

                                       17
<PAGE>   414


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                              CLASS A       CLASS B        CLASS C    CLASS I
<S>                                                              <C>           <C>            <C>        <C>

Maximum Sales Charge Imposed on Purchases
   
  (as a percentage of offering price)                            5.25%          none           none       none
    
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                    none(2)       5.00%          1.00%       none
Redemption Fees                                                    none         none           none       none
Exchange Fees                                                      none         none           none       none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily
   net assets)(3)
Investment Advisory Fees                                          .05%          .05%           .05%       .05%
12b-1 Fees (after fee waiver)(4)                                  .25%         1.00%          1.00%       none
Other Expenses                                                    .15%          .15%           .15%       .15%
Total Operating Expenses
  (after fee waivers)(5)                                          .45%         1.20%          1.20%       .20%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long term Class A, Class B, and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A.

(5)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be .55% for Class A shares.

The Fund will indirectly pay a portion of the expenses incurred by the
underlying funds. The following chart provides the expense ratio for each
underlying fund in which the Fund invests (based on the current fund
prospectus). Some of these expense ratios may include a voluntary reduction of
investment advisory fees.
<TABLE>
<CAPTION>
NAME OF UNDERLYING FUND                                                EXPENSE RATIO
- -----------------------                                                -------------

   
<S>                                                                         <C> 
One Group(R) Prime Money Market Fund                                         .52%
One Group(R) Short-Term Bond Fund                                            .53%
One Group(R) Intermediate Bond Fund                                          .58%
One Group(R) Income Bond Fund                                                .62%
One Group(R) Bond Fund                                                       .60%
One Group(R) High Yield Bond Fund                                            .87%
One Group(R) Government Bond Fund                                            .69%
One Group(R) Ultra Short-Term Bond Fund                                      .55%
One Group(R) Mid Cap Value Fund                                              .96%
One Group(R) International Equity Index Fund                                 .95%
One Group(R) Diversified International Fund                                 1.02%
One Group(R) Large Cap Growth Fund                                           .94%
One Group(R) Large Cap Value Fund                                           1.00%
</TABLE>
    


                                       18
<PAGE>   415

   
<TABLE>
<S>                                                                        <C>  
One Group(R) Mid Cap Growth Fund                                            1.00%
One Group(R) Diversified Mid Cap Fund                                        .86%
One Group(R) Diversified Equity Fund                                         .97%
One Group(R) Small Cap Growth Fund                                          1.05%
One Group(R) Small Cap Value Fund                                            .91%
One Group(R) Equity Income Fund                                              .96%
One Group(R) Equity Index Fund                                               .36%
</TABLE>

After combining the total operating expenses of the Fund with those of the
underlying funds, the estimated average weighted expense ratio for Class A
shares is 1.23%, for Class B shares is 1.98%, for Class C shares is 1.98%, and
for Class I shares is .98%. The following examples were calculated using the
combined total operating expenses.
    

EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charges; (2) 5% annual return; and
(3) redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                             1 YEAR          3 YEARS        5 YEARS     10 YEARS
                                                             ------          -------        -------     --------
   
<S>                                                            <C>             <C>           <C>          <C> 
Class A                                                        $64             $89           $117         $194
Class A (without fee waiver)                                   $66             $95           $127         $215
Class B                                                        $70             $92           $127         $211
Class B (without fee waiver)                                   $71             $95           $132         $224
Class C                                                        $30             $62           $107         $231
Class C (without fee waiver)                                   $31             $65           $112         $241
Class I                                                        $10             $31           $ 54         $120
Class I (without fee waiver)                                   $11             $34           $ 60         $132
    
</TABLE>

Assuming no redemption at the end of the time period, the dollar amounts in the
above example would be as follows:

<TABLE>
<CAPTION>
                                                             1 YEAR          3 YEARS        5 YEARS     10 YEARS
                                                             ------          -------        -------     --------
   
<S>                                                            <C>             <C>           <C>          <C> 
Class A                                                        $64             $89           $117         $194
Class A (without fee waiver)                                   $66             $95           $127         $215
Class B                                                        $20             $62           $107         $211
Class B (without fee waiver)                                   $21             $65           $112         $224
Class C                                                        $20             $62           $107         $231
Class C (without fee waiver)                                   $21             $65           $112         $241
Class I                                                        $10             $31           $ 54         $120
Class I (without fee waiver)                                   $11             $34           $ 60         $132
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 Years" examples above reflect the conversion.

These examples are designed to assist you in understanding the costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       19
<PAGE>   416


 ONE GROUP(R) INVESTOR BALANCED FUND  FINANCIAL HIGHLIGHTS

   
The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
    

<TABLE>
<CAPTION>
                                                                                                  DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                    JUNE 30,          JUNE 30,
CLASS I                                                                               1998             1997(a)
- -------                                                                               ----             -------
<S>                                                                                    <C>               <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                   $10.63            $10.00
Investment Activities:
  Net investment income                                                                  0.37              0.21
  Net realized and unrealized gains from investments                                     1.39              0.63
Total from Investment Activities                                                         1.76              0.84
Distributions:
  From net investment income                                                            (0.36)            (0.21)
  Net realized gains                                                                    (0.22)            --
Total Distributions                                                                     (0.58)            (0.21)
NET ASSET VALUE, END OF PERIOD                                                        $ 11.81           $ 10.63
Total Return                                                                            17.02%             8.48%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                $93,557           $72,155
  Ratio of expenses to average net assets                                                0.20%             0.20%(c)
  Ratio of net investment income to average net assets                                   3.31%             3.84%(c)
  Ratio of expenses to average net assets*                                               0.32%             0.56%(c)
  Ratio of net investment income to average net assets*                                  3.19%             3.48%(c)
  Portfolio turnover (d)                                                                 9.71%            12.20%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.

                                       20
<PAGE>   417

<TABLE>
<CAPTION>
                                                                                                      DECEMBER 10, 1996
                                                                                      YEAR ENDED           THROUGH
                                                                                        JUNE 30,          JUNE 30,
CLASS A                                                                                   1998             1997(a)
- -------                                                                                   ----             -------
<S>                                                                                      <C>             <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                     $ 10.66         $10.00
Investment Activities:
  Net investment income                                                                     0.34           0.17
  Net realized and unrealized gains from investments                                        1.39           0.66
Total from Investment Activities                                                            1.73           0.83
Distributions:
  From net investment income                                                               (0.34)         (0.17)
  Net realized gains                                                                       (0.22)         --
Total Distributions                                                                        (0.56)         (0.17)
NET ASSET VALUE, END OF PERIOD                                                           $ 11.83         $10.66
Total Return (Excludes Sales Charge)                                                       16.62%          8.41%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                      $32,605         $2,176
  Ratio of expenses to average net assets                                                   0.45%          0.47%(c)
  Ratio of net investment income to average net assets                                      3.01%          3.78%(c)
  Ratio of expenses to average net assets*                                                  0.66%          1.12%(c)
  Ratio of net investment income to average net assets*                                     2.80%          3.13%(c)
  Portfolio turnover (d)                                                                    9.71%         12.20%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.

                                       21
<PAGE>   418


ONE GROUP(R) INVESTOR BALANCED FUND  FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
                                                                                                  DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                    JUNE 30,          JUNE 30,
CLASS B                                                                               1998             1997(a)
- -------                                                                               ----             -------
<S>                                                                                     <C>               <C>   
Net Asset Value, Beginning of Period                                                    $ 10.65           $10.00
Investment Activities:
  Net investment income                                                                    0.26             0.16
  Net realized and unrealized gains from investments                                       1.39             0.65
Total from Investment Activities                                                           1.65             0.81
Distributions:
  From net investment income                                                              (0.26)           (0.16)
  Net realized gains                                                                      (0.22)           --
Total Distributions                                                                       (0.48)           (0.16)
NET ASSET VALUE, END OF PERIOD                                                          $ 11.82           $10.65
Total Return (Excludes Sales Charge)                                                      15.85%            8.22%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                     $70,463           $5,672
  Ratio of expenses to average net assets                                                  1.20%            1.22%(c)
  Ratio of net investment income to average net assets                                     2.26%            2.93%(c)
  Ratio of expenses to average net assets*                                                 1.31%            1.73%(c)
  Ratio of net investment income to average net assets*                                    2.15%            2.42%(c)
  Portfolio turnover (d)                                                                   9.71%           12.20%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.


                                       22
<PAGE>   419
<TABLE>
<CAPTION>
                                                                                                     YEAR ENDED
                                                                                                      JUNE 30,
CLASS C                                                                                                1998(a)
<S>                                                                                                        <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                                       $10.63
Investment Activities:
  Net investment income                                                                                      0.26
  Net realized and unrealized gains (losses) from investments                                                1.37
Total from Investment Activities                                                                             1.63
Distributions:
  Net investment income                                                                                     (0.27)
  Net realized gains                                                                                        (0.22)
Total Distributions                                                                                         (0.49)
NET ASSET VALUE, END OF PERIOD                                                                             $11.77
Total Return (Excludes Sales Charge)                                                                        15.66%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                                        $6,653
  Ratio of expenses to average net assets                                                                    1.20%
  Ratio of net investment income to average net assets                                                       2.24%
  Ratio of expenses to average net assets*                                                                   1.30%
  Ratio of net investment income to average net assets*                                                      2.14%
  Portfolio turnover (b)                                                                                     9.71%
</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 on July 1,
         1997. (b)Portfolio turnover is calculated on the basis of the Fund as a
         whole without distinguishing among the classes of shares issued.



                                       23
<PAGE>   420


   
ONE GROUP(R) INVESTOR CONSERVATIVE GROWTH FUND

INVESTMENT OBJECTIVE
    

The Fund seeks income and capital appreciation by investing primarily in a
diversified group of The One Group mutual funds which invest primarily in equity
and fixed income securities.

INVESTMENT STRATEGY

   
The Fund invests 20% to 40% of its total assets in twelve One Group mutual funds
which invest primarily in equity securities, 60% to 80% of its total assets in
seven One Group mutual funds which invest primarily in fixed income securities,
and up to 10% of its total assets in one One Group money market fund. The Fund
also may hold cash and cash equivalents.
    

PORTFOLIO SECURITIES

The Fund will invest in the underlying mutual funds within the following range:

   
<TABLE>
<S>                                                               <C>  
One Group(R) Prime Money Market Fund                              0-10%
One Group(R) Mid Cap Bond Fund                                    0-70%
One Group(R) Intermediate Bond Fund                               0-70%
One Group(R) Income Bond Fund                                     0-70%
One Group(R) Bond Fund                                            0-70%
One Group(R) High Yield Bond Fund                                 0-15%
One Group(R) Government Bond Fund                                 0-70%
One Group(R) Ultra Short-Term Bond Fund                           0-70%
One Group(R) Mid Cap Value Fund                                   0-20%
One Group(R) International Equity Index Fund                      0-20%
One Group(R) Diversified International Fund                       0-20%
One Group(R) Large Cap Growth Fund                                0-20%
One Group(R) Large Cap Value Fund                                 0-20%
One Group(R) Mid Cap Growth Fund                                  0-20%
One Group(R) Diversified Mid Cap Fund                             0-20%
One Group(R) Diversified Equity Fund                              0-20%
One Group(R) Small Cap Growth Fund                                0-20%
One Group(R) Small Cap Value Fund                                 0-20%
One Group(R) Equity Income Fund                                   0-20%
One Group(R) Equity Index Fund                                    0-20%
    
</TABLE>

RISK CONSIDERATIONS

The Fund's investments are concentrated in other mutual funds, so the Fund's
investment performance is directly related to the performance of those mutual
funds. In addition, as a matter of fundamental policy, the Fund must allocate
its investments primarily among the mutual funds. As a result, the Fund's
investment flexibility is limited. The Fund may invest in a mutual fund which
invests in medium or lower grade bonds, which can be volatile. See "Special Risk
Considerations."

                                       24
<PAGE>   421


<TABLE>
<CAPTION>
SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)                            CLASS A         CLASS B        CLASS C      CLASS I
Maximum Sales Charge Imposed on Purchases
   
<S>                                                            <C>                                           
  (as a percentage of offering price)                          5.25%             none           none        none
    
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                                   none(2)         5.00%          1.00%        none
Redemption Fees                                                   none           none           none        none
Exchange Fees                                                     none           none           none        none
ANNUAL OPERATING EXPENSES
  (as a percentage of average daily
  net assets)(3)
Investment Advisory Fees                                        .05%             .05%           .05%        .05%
12b-1 Fees (after fee waiver)(4)                                .25%            1.00%          1.00%        none
Other Expenses                                                  .15%             .15%           .15%        .15%
Total Operating Expenses (after fee
  waivers)(5)                                                   .45%            1.20%          1.20%        .20%
</TABLE>

(1)      If you buy or sell shares through a Shareholder Servicing Agent, you
         may be charged separate transaction fees by the Shareholder Servicing
         Agent. In addition, a $10.00 sub-minimum account fee may be applicable
         and a $7.00 charge will be deducted from redemption amounts paid by
         wire.

(2)      Except for purchases of $1 million or more. Please see "Sales Charges."

(3)      Expense information has been restated to reflect current fees.

(4)      Due to 12b-1 fees, long term Class A, Class B, and Class C shareholders
         may pay more than the equivalent of the maximum front-end sales charges
         permitted by the rules of the National Association of Securities
         Dealers. Without the voluntary waiver, 12b-1 fees would be .35% for
         Class A.

(5)      Without the voluntary reduction of 12b-1 fees, Total Operating Expenses
         would be .55% for Class A shares.

The Fund will indirectly pay a portion of the expenses incurred by the
underlying funds. The following chart provides the expense ratio for each
underlying fund in which the Fund invests (based on the current fund
prospectus). Some of these expense ratios may include a voluntary reduction of
investment advisory fees.

<TABLE>
<CAPTION>
NAME OF UNDERLYING FUND                                              EXPENSE RATIO
- -----------------------                                              -------------
   
<S>                                                                        <C> 
One Group(R) Prime Money Market Fund                                       .52%
One Group(R) Short-Term Bond Fund                                          .53%
One Group(R) Intermediate Bond Fund                                        .58%
One Group(R) Income Bond Fund                                              .62%
One Group(R) Bond Fund                                                     .60%
One Group(R) High Yield Bond Fund                                          .87%
One Group(R) Government Bond Fund                                          .69%
One Group(R) Ultra Short-Term Bond Fund                                    .55%
One Group(R) Mid Cap Value Fund                                            .96%
One Group(R) International Equity Index Fund                               .95%
One Group(R) Diversified International Fund                               1.02%
One Group(R) Large Cap Growth Fund                                        .94%%
One Group(R) Large Cap Value Fund                                         1.00%
One Group(R) Mid Cap Growth Fund                                          1.00%
</TABLE>
    

                                       25
<PAGE>   422
   
<TABLE>
<S>                                                                        <C> 
One Group(R) Diversified Mid Cap Fund                                      .86%
One Group(R) Diversified Equity Fund                                       .97%
One Group(R) Small Cap Growth Fund                                        1.05%
One Group(R) Small Cap Value Fund                                          .91%
One Group(R) Equity Income Fund                                            .96%
One Group(R) Equity Index Fund                                             .36%
</TABLE>

After combining the total operating expenses of the Fund with those of the
underlying funds, the estimated average weighted expense ratio for Class A
shares is 1.16%, for Class B shares is 1.91%, for Class C shares is 1.91%, and
for Class I shares is .91%. The following examples were calculated using the
combined total operating expenses.
    



                                       26
<PAGE>   423


EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charges; (2) 5% annual return; and
(3) redemption at the end of each time period.

<TABLE>
<CAPTION>
                                                              1 YEAR           3 YEARS       5 YEARS     10 YEARS
                                                              ------           -------       -------     --------
   
<S>                                                            <C>               <C>           <C>         <C> 
Class A                                                        $64               $87           $113        $186
Class A (without fee waiver)                                   $66               $94           $125        $212
Class B                                                        $69               $90           $123        $204
Class B (without fee waiver)                                   $71               $94           $130        $221
Class C                                                        $29               $60           $103        $223
Class C (without fee waiver)                                   $31               $64           $110        $238
Class I                                                        $ 9               $29           $ 50        $112
Class I (without fee waiver)                                   $11               $33           $ 58        $128
    
</TABLE>

Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:
<TABLE>
<CAPTION>
                                                            1 YEAR            3 YEARS      5 YEARS      10 YEARS
                                                            ------            -------      -------      --------

   
<S>                                                            <C>               <C>           <C>         <C> 
Class A                                                        $64               $87           $113        $186
Class A (without fee waiver)                                   $66               $94           $125        $212
Class B                                                        $19               $60           $103        $204
Class B (without fee waiver)                                   $21               $64           $110        $221
Class C                                                        $19               $60           $103        $223
Class C (without fee waiver)                                   $21               $64           $110        $238
Class I                                                        $ 9               $29           $ 50        $112
Class I (without fee waiver)                                   $11               $33           $ 58        $128
    
</TABLE>

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 Years" examples above reflect the conversion.

These examples are designed to assist you in understanding the costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

                                       27
<PAGE>   424
   
ONE GROUP(R) INVESTOR CONSERVATIVE GROWTH FUND  FINANCIAL HIGHLIGHTS
    

The Financial Highlights are intended to help you understand the Fund's
financial performance for the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.

<TABLE>
<CAPTION>
                                                                                                   DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                    JUNE 30,          JUNE 30,
CLASS I                                                                               1998             1997(a)
- -------                                                                               ----             -------
<S>                                                                                   <C>                <C>    
NET ASSET VALUE, BEGINNING OF PERIOD                                                  $ 10.33            $ 10.00
Investment Activities:
  Net investment income                                                                  0.46               0.26
  Net realized and unrealized gains (losses)
    from investments                                                                     0.82               0.33
Total from Investment Activities                                                         1.28               0.59
Distributions:
  From net investment income                                                            (0.45)             (0.26)
  Net realized gains                                                                    (0.10)             --
Total Distributions                                                                     (0.55)             (0.26)
NET ASSET VALUE, END OF PERIOD                                                        $ 11.06            $ 10.33
Total Return                                                                            12.73%              6.00%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                   $30,352            $15,038
  Ratio of expenses to average net assets                                                0.20%              0.20%(c)
  Ratio of net investment income to average net assets                                   4.43%              4.92%(c)
  Ratio of expenses to average net assets*                                               0.56%              1.46%(c)
  Ratio of net investment income to average net assets*                                  4.07%              3.66%(c)
  Portfolio turnover (d)                                                                 3.22%             28.46%
<FN>

*        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.
</TABLE>


                                       28
<PAGE>   425
<TABLE>
<CAPTION>
                                                                                                    DECEMBER 10, 1996
                                                                                   YEAR ENDED            THROUGH
                                                                                    JUNE 30,            JUNE 30,
CLASS A                                                                               1998               1997(a)
- -------                                                                               ----               -------
<S>                                                                                  <C>                 <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                 $10.32              $10.00
Investment Activities:
  Net investment income                                                                0.43                0.22
  Net realized and unrealized gains (losses)
    from investments                                                                   0.82                0.32
Total from Investment Activities                                                       1.25                0.54
Distributions:
  From net investment income                                                          (0.43)              (0.22)
  Net realized gains                                                                  (0.10)              --
Total Distributions                                                                   (0.53)              (0.22)
NET ASSET VALUE, END OF PERIOD                                                       $11.04              $10.32
Total Return (Excludes Sales Charge)                                                  12.38%               5.46%(b)
</TABLE>


<TABLE>
<S>                           <C>                                                   <C>                  <C>   
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                 $12,538              $1,299
  Ratio of expenses to average net assets                                              0.45%               0.47%(c)
  Ratio of net investment income to average net assets                                 4.12%               4.76%(c)
  Ratio of expenses to average net assets*                                             0.82%               3.05%(c)
  Ratio of net investment income to average net assets*                                3.75%               2.18%(c)
  Portfolio turnover (d)                                                               3.22%              28.46%
</TABLE>

*        During the period certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Period from commencement of operations. (b)Not
         annualized. (c)Annualized. (d)Portfolio turnover is calculated on the
         basis of the Fund as a whole without distinguishing among the classes
         of shares issued.

                                       29
<PAGE>   426


ONE GROUP(R) INVESTOR CONSERVATIVE GROWTH FUND  FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                                                                    DECEMBER 10, 1996
                                                                                  YEAR ENDED           THROUGH
                                                                                   JUNE 30,           JUNE 30,
CLASS B                                                                              1998              1997(a)
- -------                                                                              ----              -------
<S>                                                                                     <C>                <C>   
NET ASSET VALUE, BEGINNING OF PERIOD                                                    $ 10.33            $10.00
Investment Activities:
  Net investment income                                                                    0.37              0.19
  Net realized and unrealized gains (losses)
    from investments                                                                       0.81              0.33
         Total from Investment Activities                                                  1.18              0.52
Distributions:
  From net investment income                                                              (0.36)            (0.19)
  Net realized gains                                                                      (0.10)            --
Total Distributions                                                                       (0.46)            (0.19)
NET ASSET VALUE, END OF PERIOD                                                          $ 11.05            $10.33
Total Return (Excludes Sales Charge)                                                      11.53%             5.30%(b)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                     $39,489            $2,616
  Ratio of expenses to average net assets                                                  1.20%             1.21%(c)
  Ratio of net investment income to average net assets                                     3.37%             4.06%(c)
  Ratio of expenses to average net assets*                                                 1.47%             3.52%(c)
  Ratio of net investment income to average net assets*                                    3.10%             1.75%(c)
  Portfolio turnover(d)                                                                    3.22%            28.46%
<FN>

*        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.
</TABLE>

                                       30
<PAGE>   427
<TABLE>
<CAPTION>
                                                                                                     YEAR ENDED
                                                                                                      JUNE 30,
CLASS C                                                                                                1998(a)
- -------                                                                                                -------
<S>                                                                                                        <C>   
Net Asset Value, Beginning of Period                                                                       $10.33
Investment Activities:
  Net investment income                                                                                      0.35
  Net realized and unrealized gains (losses) from investments                                                0.81
Total from Investment Activities                                                                             1.16
Distributions:
  Net investment income                                                                                     (0.36)
  Net realized gains                                                                                        (0.10)
Total Distributions                                                                                         (0.46)
NET ASSET VALUE, END OF PERIOD                                                                             $11.03
Total Return (Excludes Sales Charge)                                                                        11.48%
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)                                                                     $3,788
  Ratio of expenses to average net assets                                                                    1.20%
  Ratio of net investment income to average net assets                                                       3.39%
  Ratio of expenses to average net assets*                                                                   1.47%
  Ratio of net investment income to average net assets*                                                      3.12%
  Portfolio turnover (b)                                                                                     3.22%
<FN>


*        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 on July 1,
         1997. (b)Portfolio turnover is calculated on the basis of the Fund as a
         whole without distinguishing among the classes of shares issued.
</TABLE>

                                       31
<PAGE>   428


MORE ABOUT THE FUNDS

ILLIQUID INVESTMENTS

Each Fund may invest up to 15% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by The One Group Board of Trustees in determining whether an
investment is illiquid.

TEMPORARY DEFENSIVE POSITION

Banc One Investment Advisors may decide that because of market conditions the
Funds should temporarily be invested in instruments other than the underlying
mutual funds. Therefore, the Funds are permitted for temporary defensive
purposes to invest up to 100% of their assets in short-term fixed income
securities. These securities include obligations of the U.S. Government and its
agencies and instrumentalities, commercial paper, bank certificates of deposit,
repurchase agreements, bankers' acceptances, variable amount master demand notes
and bank money market deposit accounts.

To the extent that the Funds are engaged in a temporary defensive position, they
will not be pursuing their investment objective.

SPECIAL RISK CONSIDERATIONS

EQUITY FUNDS: Because equity funds invest primarily in equity securities, which
fluctuate in value, the funds' shares will fluctuate in value. In addition,
certain investment management techniques that the funds may use, such as the
purchase and sale of futures, options and forward commitments, could expose the
funds to potentially greater risk of loss than more traditional equity
investments.

FIXED INCOME FUNDS: Investments in fixed income securities (for example, bonds)
will increase or decrease in value based on changes in interest rates. If rates
increase, the value of a Fund's investments generally declines. On the other
hand, if rates fall, the value of the investments generally increases. The value
of your investment in a Fund will increase and decrease as the value of a Fund's
investments increase and decrease. While securities with longer duration and
maturities tend to produce higher yields, they also are subject to greater
fluctuations in value when interest rates change. Usually changes in the value
of fixed income securities will not affect cash income generated, but may affect
the value of your investment. Fixed income securities also are subject to the
risk that the issuer of the security will be unable to meet its repayment
obligation.

INDEX FUNDS: An index fund's investment objective is to track the performance of
a specified index. Therefore, securities may be purchased, retained and sold by
an index fund at times when an actively managed fund would not do so. As a
result, you can expect greater risk of loss (and a correspondingly greater
prospect of gain) from changes in the value of securities that are heavily
weighted in the index than would be the case if the funds were not fully
invested in such securities. Because of this, an index fund's share price can be
volatile and you should be able to handle sudden, and sometimes substantial,
fluctuation in the value of your investment.

   
INTERNATIONAL FUNDS: Funds investing in foreign securities are subject to
special risks. These risks may include future unfavorable political and economic
developments, possible withholding taxes, seizure of foreign deposits, currency
controls, higher transaction costs, and delayed settlements of transactions.
Securities of some foreign companies are less liquid, and their prices more
volatile, than securities of comparable U.S. companies. Additionally, there may
be less public information available about foreign issuers. Since the funds may
invest in securities denominated in foreign currencies, changes in exchange
rates also may affect the value of investments in the funds. On January 1, 1999,
the European Economic and Monetary Union introduced the "Euro." The Euro will
serve as a common currency for participating European nations. All stocks issued
by corporations located in those nations will be denominated in Euros. In
addition, outstanding shares will be redenominated in Euros. All government
bonds issued by participating nations will be in Euros, and outstanding
government bonds will be redenominated in Euros. The introduction of the Euro
presents some uncertainties, such as the adequacy of newly created accounting,
clearing, settlement and payment systems for the new currency. These
uncertainties surrounding the introduction of the Euro could adversely affect
the value of the securities held by a Fund.
    

                                       32
<PAGE>   429

SMALL CAPITALIZATION FUNDS: Smaller, less seasoned companies may be subject to
greater business risk than larger, established companies. They may be more
vulnerable to changes in economic conditions, specific industry conditions,
market fluctuations and other factors affecting the profitability of other
companies. Therefore, the stock price of smaller capitalization companies may be
subject to greater price fluctuations than that of larger, established
companies. Due to these and other risk factors, the price movement of the
securities held by the funds may be volatile and the net asset value of shares
of the funds may fluctuate.

HIGH YIELD BOND FUNDS: High yield securities that are rated below investment
grade or are unrated are commonly known as "junk bonds." These securities are
considered speculative investments by major credit rating agencies. High yield
bonds involve a greater risk of default and price volatility than U.S.
government bonds and other high quality fixed-income securities. These debt
instruments generally offer a higher current yield than that available from
higher grade issuers, but typically involve greater risk. The yields on these
bonds will fluctuate over time. Low rated and unrated securities are especially
subject to adverse changes in general economic conditions and to changes in the
financial condition of their issuers. During periods of economic downturns or
rising interest rates, issuers of these instruments may experience financial
stress that could adversely affect their ability to make payments of principal
and interest and increase the possibility of default.

                                       33
<PAGE>   430


   
HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS
    

PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

         -        The One Group Services Company, and

         -        Shareholder Servicing Agents. These include investment
                  advisors, brokers, financial planners, banks, insurance
                  companies, retirement or 401(k) plan sponsors, or other
                  intermediaries. Shares purchased this way will be held for you
                  by the Shareholder Servicing Agent.

WHEN CAN I BUY SHARES?

         -        Purchases may be made on any business day. This includes any
                  day that the Funds are open for business, other than weekends,
                  days on which the New York Stock Exchange ("NYSE") is closed,
                  and the following holidays: New Year's Day, Martin Luther
                  King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
                  Independence Day, Labor Day, Thanksgiving, and Christmas.

         -        Purchase requests received by The One Group Services Company
                  before 4:00 p.m. Eastern Time ("ET"), will be effective that
                  day. On occasion, the NYSE will close before 4 p.m. ET. When
                  that happens, purchase requests received after the NYSE closes
                  will be effective the following business day.

         -        Purchase orders may be cancelled by the Fund's Custodian,
                  State Street Bank and Trust Company, if it does not receive
                  "federal funds" by 4:00 p.m. ET (i) on the business day after
                  the order is placed if you are buying Class I shares, and (ii)
                  on the third business day if you are purchasing Class A, Class
                  B and Class C shares.

         -        If your shares are held by a Shareholder Servicing Agent, it
                  is the responsibility of the Shareholder Servicing Agent to
                  send your purchase or redemption order to the Fund. Your
                  Shareholder Servicing Agent may have an earlier cut-off time
                  for purchase and redemption requests.

         -        The One Group Services Company can reject a purchase order if
                  it does not think that it is in the best interests of a Fund
                  and/or its shareholders to accept the order.

         -        Shares are electronically recorded. Therefore, certificates
                  will not be issued.

WHAT KIND OF SHARES CAN I BUY?

One Group offers the following classes of shares:

         -        Class A, Class B and Class C shares are available to the
                  general public.

         -        Class I shares are available to institutional investors and
                  any organization authorized to act in a fiduciary, advisory,
                  custodial or agency capacity. We will refer to these entities
                  as "Intermediaries."

         -        If you intend to hold your shares for six or more years, Class
                  B shares may be appropriate for you. If you intend to hold
                  your shares for less than six years, you may want to consider
                  Class A or Class C shares.

                                       34
<PAGE>   431

One Group Fund Direct IRA. One Group offers a retirement plan, and in 1999, may
offer an education plan. These plans allow participants to defer taxes while
their retirement and education savings grow. The education IRA requires a
minimum investment of $500. Call The One Group Services Company at
1-800-480-4111 for an Adoption Agreement.

HOW MUCH DO SHARES COST?

         -        Shares are sold at net asset value ("NAV") plus a sales
                  charge, if any.

         -        Each class of shares in each Fund has a different NAV. This is
                  primarily because each class has different distribution
                  expenses.

         -        NAV per share is calculated by dividing the total market value
                  of a Fund's investments and other assets allocable to a class
                  (minus class expenses) by the number of outstanding shares in
                  that class.

         -        A Fund's NAV changes every day. NAV is calculated each
                  business day following the close of the NYSE at 4:00 p.m. ET.
                  On occasion, the NYSE will close before 4:00 p.m. ET. When
                  that happens, NAV will be calculated as of the time the NYSE
                  closes.

HOW DO I OPEN AN ACCOUNT?

1.       Read the prospectus carefully, and select the Fund or Funds most
         appropriate for you.

2.       Decide how much you want to invest.

   
         -        The minimum initial investment is $1,000 ($100 for employees
                  of BANK ONE CORPORATION and its affiliates). The minimum
                  initial investment for an IRA is $250.
    

         -        Subsequent investments must be at least $100 ($25 for
                  employees of BANK ONE CORPORATION and its affiliates).

         -        You may purchase no more than $250,000 of Class B shares at
                  one time.

         -        The One Group Services Company may waive these minimums.

3.       Complete the Account Application Form. Be sure to sign up for all of
         the Account privileges that you plan to take advantage of. Doing so now
         means that you will not have to complete additional paperwork later.

   
4.       Send the completed application and a personal check (unless you choose
         to pay by wire or bank transfer) payable to One Group" to:

         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528
    

         Contributions to Fund Direct IRAs should be made payable to "State
         Street Bank and Trust Company for the Benefit of (your name)."

5.       All checks should be in U.S. dollars. Third party checks will not be
         accepted. Redemptions from a Fund will not be permitted for ten (10)
         calendar days if purchases are made by check or under the Systematic
         Investment Plan (see below).

                                       35
<PAGE>   432

6.       If you purchase shares through a Shareholder Servicing Agent, you may
         be required to complete additional forms or follow additional
         procedures. You should contact your Shareholder Servicing Agent
         regarding purchases, exchanges and redemptions.

7.       If you have any questions, contact your Shareholder Servicing Agent or
         call The One Group Services Company at 1-800-480-4111.

CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes. Simply select this option on your Account Application Form and then:

         -        Contact your Shareholder Servicing Agent or The One Group
                  Services Company at 1-800-480-4111 to relay your purchase
                  instructions.

   
         -        Send a personal check made payable to "One Group" to State
                  Street Bank and Trust Company (see address above), authorize a
                  bank transfer, or initiate a wire transfer to the following
                  wire address:
    

         State Street Bank & Trust Company
         Attn: Custody & Shareholder Services
         ABA 011 000 028
         DDA 99034167
   
         FBO One Group Fund (ex: One Group Investor Balanced Fund--A)
         Your Account Number (ex: 123456789)
         Your Account Registration (ex: John Smith & Mary Smith, JTWROS)

         -        One Group uses reasonable procedures to confirm that
                  instructions given by telephone are genuine. These procedures
                  include recording telephone instructions and asking for
                  personal identification. If these procedures are followed, One
                  Group will not be responsible for any loss, liability, cost or
                  expense of acting upon unauthorized or fraudulent
                  instructions; you bear the risk of loss.
    

         -        You may revoke your right to make purchases over the telephone
                  by sending a letter to:

   
         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

CAN I AUTOMATICALLY INVEST ON A SYSTEMATIC BASIS?

Yes. After your Account is established, you may purchase additional Class A,
Class B and Class C shares by making automatic monthly investments from your
bank account. The minimum initial investment is still $1,000, but minimum
automatic additions are only $25. The One Group Services Company may waive these
minimums. To establish a Systematic Investment Plan:

         -        Select the "Systematic Investment Plan" option on the Account
                  Application Form.

         -        Provide the necessary information about the bank account from
                  which your investments will be made.

         -        Shares purchased under a Systematic Investment Plan may not be
                  redeemed for ten (10) calendar days.

   
         -        One Group currently does not charge for this service, but 
                  may impose a charge in the future. However, your bank may 
                  impose a charge for debiting your bank account.
    

                                       36
<PAGE>   433

         -        You may revoke your right to make systematic investments by
                  calling The One Group Services Company at 1-800-480-4111 or by
                  sending a letter to:

   
         State Street Bank and Trust Company
         c/o One Group
    
         P.O. Box 8528
         Boston, MA 02266-8528

CONVERSION FEATURE

Your Class B shares automatically convert to Class A shares after eight years
(measured from the end of the month in which they were purchased).

         -        After conversion, your shares will be subject to the lower
                  distribution and shareholder servicing fees charged on Class A
                  shares.

         -        You will not be assessed any sales charges or fees for
                  conversion of shares, nor will you be subject to any Federal
                  income tax.

         -        Because the share price of the Class A shares may be higher
                  than that of the Class B shares at the time of conversion, you
                  may receive fewer Class A shares; however, the dollar value
                  will be the same.

         -        If you have exchanged Class B shares of one Fund for Class B
                  shares of another, the time you held the shares in each Fund
                  will be added together.

SALES CHARGES

   
The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from sales charges, 12b-1 fees and
payment by The One Group Services Company from its own resources. Occasionally,
The One Group Services Company, at its own expense, also will provide cash
incentives to select Shareholder Servicing Agents. Those Shareholder Servicing
Agents who may receive special incentives include Banc One Securities
Corporation, The Advisors Group, United Planners Financial Services of America,
Inc., The Legend Group, and Rosewood Retirement Advisory Services, LLC. The One
Group Services Company pays additional compensation to Shareholder Servicing
Agents for sales of over $1 million dollars of Class A shares. Shareholder
Servicing Agents receive 1.00% of the purchase price of Class A shares for
sales of $1 million to $5 million, and 0.50% on amounts over $5 million.
    


CLASS A SHARES

This table shows the amount of sales charge you pay and the commissions paid to
Shareholder Servicing Agents.
   
<TABLE>
<CAPTION>
                                               SALES CHARGE               SALES CHARGE               COMMISSION
                                               AS A % OF THE                AS A % OF                 AS A % OF
AMOUNT OF PURCHASE                            OFFERING PRICE             YOUR INVESTMENT           OFFERING PRICE
- ------------------                            --------------             ---------------           --------------
<S>                                                  <C>                          <C>                      <C>  
Less than $50,000                                 5.25%                        5.54%                    4.75%
$50,000-$99,999                                   4.50%                        4.71%                    4.05%
$100,000-$249,999                                 3.50%                        3.63%                    3.05%
$250,000-$499,999                                 2.50%                        2.56%                    2.05%
$500,000-$999,999                                 2.00%                        2.04%                    1.60%
$1,000,000*                                       0.00%                        0.00%                    0.00%
</TABLE>
    

                                       37
<PAGE>   434
   
* If you purchase $1 million or more of Class A shares and are not assessed a
sales charge at the time of purchase, you will be charged the equivalent of 1%
of the purchase price if you redeem any or all of the Class A shares within one
year of purchase and 0.50% of the purchase price if you redeem within two years
of purchase, unless The One Group Services Company receives notice before you
invest indicating that your Shareholder Servicing Agent is waiving its
commission.
    


CLASS B SHARES

Class B shares are offered at NAV, without any up-front sales charges. However,
if you redeem these shares within six years of the purchase date, you will be
assessed a Contingent Deferred Sales Charge ("CDSC") according to the following
schedule:

<TABLE>
<CAPTION>
                                                          CDSC AS A % OF DOLLAR
               YEARS SINCE PURCHASE                      AMOUNT SUBJECT TO CHARGE
               --------------------                      ------------------------

<S>                       <C>                                        <C>  
                          0-1                                        5.00%
                          1-2                                        4.00%
                          2-3                                        3.00%
                          3-4                                        3.00%
                          4-5                                        2.00%
                          5-6                                        1.00%
                      more than 6                                    0.00%
</TABLE>

The One Group Services Company pays a commission of 4.00% of the original
purchase price to Shareholder Servicing Agents who sell Class B shares.

CLASS C SHARES

Class C shares are offered at NAV, without any up-front sales charge. However,
if you redeem your shares within one year of the purchase date, you will be
assessed a CDSC as follows:

<TABLE>
<CAPTION>
                                                        CDSC AS A % OF DOLLAR
               YEARS SINCE PURCHASE                    AMOUNT SUBJECT TO CHARGE
               --------------------                    ------------------------
<S>            <C>                                      <C>  
                          0-1                                      1.00%
                   After first year                                 None
</TABLE>

Shareholder Servicing Agents selling Class C shares receive a commission of
1.00% of the original purchase price from The One Group Services Company.

How the CDSC is Calculated

         -        The Fund assumes that all purchases made in a given month were
                  made on the first day of the month.

         -        The CDSC is based on the current market value or the original
                  cost of the shares, whichever is less.

         -        A sales charge is not imposed on increases in NAV above the
                  initial purchase price, nor is a sales charge assessed on
                  shares acquired through reinvestment of dividends or capital
                  gains distributions.

         -        To keep your CDSC as low as possible, the Fund first will
                  redeem any shares in your account that carry no CDSC, starting
                  with Class A Shares. After that, the Fund will redeem the
                  shares you have held for the longest time and thus have the
                  lowest CDSC.

                                       38
<PAGE>   435

   
         -        If you exchange Class B or Class C shares of an unrelated
                  mutual fund for Class B or Class C shares of The Group in
                  connection with a fund reorganization, the CDSC applicable to
                  your original shares (including the period of time you have
                  held those shares) will be applied to One Group shares you
                  receive in the reorganization.
    

12b-1 FEES

   
12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to Shareholder Servicing Agents that sell
shares of One Group.
    

         -        The 12b-1 fees vary by share class as follows:

         1.       Class A shares pay a 12b-1 fee of .35% of the average daily
                  net assets of the Fund, which is currently being waived to
                  .25%.

         2.       Class B and Class C shares pay a 12b-1 fee of 1.00% of the
                  average daily net assets of the Fund. This will cause expenses
                  for Class B and Class C shares to be higher and dividends to
                  be lower than for Class A shares.

         3.       There are no 12b-1 fees for Class I shares.

         -        12b-1 fees, together with the CDSC, help The One Group
                  Services Company sell Class B and Class C shares without an
                  "up-front" sales charge by defraying the costs of advancing
                  brokerage commissions and other expenses paid to Shareholder
                  Servicing Agents.

         -        The One Group Services Company may use up to .25% of the fees
                  for shareholder servicing and up to .75% for distribution.
                  During the last fiscal year, The One Group Services Company
                  received 12b-1 fees totaling .25%, 1.00% and 1.00% of the
                  average daily net assets of Class A, Class B and Class C
                  shares, respectively.

         -        The One Group Services Company may pay 12b-1 fees to its
                  affiliates and to Banc One Investment Advisors and its
                  affiliates (or any sub-advisor) for brokerage and other agency
                  transactions.

SALES CHARGE REDUCTIONS AND WAIVERS

REDUCING YOUR CLASS A SALES CHARGES

There are several ways you can reduce the sales charges you pay on Class A
shares:

1.       Right of Accumulation: You may add the market value of any Class A,
         Class B or Class C shares of a Fund (except a money market fund) that
         you (and your spouse and minor children) already own to the amount of
         your next Class A purchase for purposes of calculating the sales
         charge. An Intermediary also may take advantage of this option.

2.       Letter of Intent: With an initial investment of $2,000, you may
         purchase Class A shares of one or more funds over the next 13 months
         and pay the same sales charge that you would have paid if all shares
         were purchased at once. A percentage of your investment will be held in
         escrow until the full amount covered by the Letter of Intent has been
         invested.

To take advantage of the accumulation privilege or letter of intent, complete
the appropriate section of your fund application, or contact your Shareholder
Servicing Agent. To determine if you are eligible for the accumulation
privilege, contact The One Group Services Company at 1-800-480-4111. These
programs may be terminated or amended at any time.

                                       39
<PAGE>   436

WAIVER OF THE CLASS A SALES CHARGE

No sales charge is imposed on Class A shares of the Funds if the shares were:

1.       Bought with the reinvestment of dividends and capital gains
         distributions.

2.       Acquired in exchange for other Fund shares if a comparable sales charge
         has been paid for the exchanged shares.

3.       Bought by officers, directors or trustees, retirees and employees (and
         their spouses and immediate family members) of:

   
         One Group.
    

         -        BANK ONE CORPORATION and its subsidiaries and affiliates.

         -        The One Group Services Company and its subsidiaries and
                  affiliates.

         -        State Street Bank and Trust Company and its subsidiaries and
                  affiliates.

   
         -        Broker/dealers who have entered into dealer agreements with
                  One Group and their subsidiaries and affiliates.

         -        An investment sub-advisor of One Group Fund and such
                  sub-advisor's subsidiaries and affiliates.
    

4.       Bought by:

         -        Affiliates of BANK ONE CORPORATION and certain accounts (other
                  than IRA Accounts) for which an Intermediary acts in a
                  fiduciary, advisory, agency, custodial or similar capacity.

         -        Accounts to which a bank or broker-dealer charges an asset
                  allocation fee, provided the bank or broker-dealer has an
                  agreement with The One Group Services Company.

   
         -        Accounts which participate in select affinity programs with
                  BANK ONE CORPORATION and its subsidiaries and affiliates.
    

         -        Retirement and deferred compensation plans and trusts used to
                  fund those plans, including, but not limited to, those defined
                  in sections 401(a), 403(b) or 457 of the Internal Revenue Code
                  and "rabbi trusts."

         -        Shareholder Servicing Agents who have a dealer arrangement
                  with The One Group Services Company, who place trades for
                  their own accounts or for the accounts of their clients and
                  who charge a management, consulting or other fee for their
                  services, as well as clients of such Shareholder Servicing
                  Agents who place trades for their own accounts if the accounts
                  are linked to the master account of such Shareholder Servicing
                  Agent on the books and record of the broker or agent.

   
5.       Bought with proceeds from the sale of Class I shares of One Group Fund
         or acquired in an exchange of Class I shares of a Fund for Class A
         shares of the same Fund, but only if the purchase is made within 60
         days of the sale or distribution.

6.       Bought with proceeds from the sale of shares of a mutual fund,
         including a One Group Fund, for which a sales charge was paid, but only
         if the purchase is made within 60 days of the sale or distribution.
    

                                       40
<PAGE>   437
   
7.       Bought in an IRA with the proceeds of a distribution from an employee
         benefit plan, but only if the purchase is made within 60 days of the
         sale or distribution and, at the time of the distribution, the employee
         benefit plan had plan assets invested in a One Group Fund.

8.       Bought with assets of One Group.
    

9.       Bought in connection with plans of reorganizations of a Fund, such as
         mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

The waivers described in (5), (6) and (7) above will not continue indefinitely
and may be discontinued at any time without notice.

WAIVER OF THE CLASS B SALES CHARGE

No sales charge is imposed on redemptions of Class B shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age
         701/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   
6.       Acquired in exchange for Class B shares of other One Group Funds.
    

WAIVER OF THE CLASS C SALES CHARGE

No sales charge is imposed on redemptions of Class C shares of the Funds:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of such death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age
         701/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

   
6.       Acquired in exchange for Class C shares of other One Group Funds.
    

                                       41
<PAGE>   438

7.       If The One Group Services Company receives notice before you invest
         indicating that your Shareholder Servicing Agent, due to the type of
         account that you have, is waiving its commission.

To take advantage of any of these sales charge waivers, you must qualify for
such waiver in advance. To see if you qualify, contact The One Group Services
Company at 1-800-480-4111, or your Shareholder Servicing Agent.

EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

You may make the following exchanges:

   
         -        Class I shares of a Fund may be exchanged for Class A shares
                  of that Fund or for Class A or Class I shares of another One
                  Group Fund.

         -        Class A shares of a Fund may be exchanged for Class I shares
                  of that Fund or for Class A or Class I shares of another One
                  Group Fund, but only if you are eligible to purchase those
                  shares.

         -        Class B shares of a Fund may be exchanged for Class B shares
                  of another One Group Fund.

         -        Class C shares of a Fund may be exchanged for Class C shares
                  of another One Group Fund.

One Group Funds offer a Systematic Exchange Privilege which allows you to
automatically exchange shares of one fund to another on a monthly or quarterly
basis. This privilege is useful in Dollar Cost Averaging. To participate in this
privilege, please select it on your account application. To learn more about it,
please call The One Group Services Company at 1-800-480-4111.

One Group does not charge a fee for this privilege. In addition, One Group may
change the terms and conditions of your exchange privileges upon 60 days written
notice.
    

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

         -        State Street Bank and Trust Company receives the request by
                  4:00 p.m. ET.

   
         -        You have provided One Group with all of the information
                  necessary to process the exchange.
    
         -        You have received a current prospectus of the Fund or Funds in
                  which you wish to invest.

         -        You have contacted your Shareholder Servicing Agent, if
                  necessary.

DO I PAY A SALES CHARGE ON AN EXCHANGE?

Generally, you will not pay a sales charge on an exchange. However:

You will pay a sales charge if you own Class I shares of a Fund and you want to
exchange those shares for Class A shares, unless you qualify for a sales charge
waiver (see above).

         -        You will pay a sales charge if you bought Class A shares of a
                  Fund:

                                       42
<PAGE>   439

         1.       That does not charge a sales charge and you want to exchange
                  them for shares of a Fund that does, in which case you would
                  pay the sales charge applicable to the Fund into which you are
                  exchanging.

         2.       That charged a lower sales charge than the Fund into which you
                  are exchanging, in which case you would pay the difference
                  between that Fund's sales charge and all other sales charges
                  you have already paid.

         -        If you exchange Class B or Class C shares of a Fund, you will
                  not pay a sales charge at the time of the exchange, however:

         1.       Your new Class B or Class C shares will be subject to the
                  higher CDSC of either the Fund from which you exchanged, the
                  Fund into which you exchanged, or any Fund from which you
                  previously exchanged.

         2.       The current holding period for your exchanged Class B or Class
                  C shares is carried over to your new shares.

ARE EXCHANGES TAXABLE?

Generally:

         -        An exchange between classes of shares of the same Fund is not
                  taxable for Federal income tax purposes.

         -        An exchange between Funds is considered a sale and generally
                  results in a capital gain or loss for Federal income tax
                  purposes.

         -        You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short-term movements in the market. Therefore:

   
         -        To prevent disruptions in the management of the Funds, One
                  Group limits excessive exchange activity.
    

         -        Exchange activity is excessive if it exceeds two substantive
                  exchange redemptions (within 30 days of each other) within a
                  twelve month period.

   
         -        In addition, One Group reserves the right to reject any
                  exchange request (even those that are not excessive) if the
                  Fund reasonably believes that the exchange will result in
                  excessive transaction costs or otherwise adversely affect
                  other shareholders.
    

REDEEMING FUND SHARES

WHEN CAN I REDEEM SHARES?

You may redeem all or some of your shares on any day that the Funds are open for
business.

         -        Redemption requests received by The One Group Services Company
                  before 4:00 p.m. ET (or when the NYSE closes) will be
                  effective that day.


                                       43
<PAGE>   440



HOW DO I REDEEM SHARES?

         -        Unless you have selected the telephone option on your Account
                  Application Form, you must send a written redemption request
                  to your Shareholder Servicing Agent, if applicable, or to
                  State Street Bank and Trust Company at the following address:

   
         One Group
         c/o State Street Bank and Trust Company
         P.O. Box 8528
         Boston, MA 02266-8528
    
         -        All requests for redemptions from IRA accounts must be in
                  writing.

         -        You may request redemption forms by calling The One Group
                  Services Company at 1-800-480-4111.

         -        State Street Bank and Trust Company may require that the
                  signature on your redemption request be guaranteed by a
                  commercial bank, a member of a domestic stock exchange, or a
                  member of the Securities Transfer Association Medallion
                  Program or the Stock Exchange Medallion Program, unless:

         1.       the redemption is for $50,000 worth of shares or less;

         2.       the redemption is payable to the shareholder of record;

         3.       the redemption check is mailed to the shareholder at the
                  record address; or

         4.       the redemption is payable by wire or bank transfer (ACH) to a
                  pre-existing bank account.

         -        On the Account Application Form you may elect to have the
                  redemption proceeds mailed or wired to:

         1.       a designated commercial bank or

         2.       State Street Bank and Trust Company or your Shareholder
                  Servicing Agent.

         -        State Street Bank and Trust Company may charge you a wire
                  redemption fee. The current charge is $7.00.

         -        Your redemption proceeds will be paid within seven days after
                  receipt of the redemption request.

WHAT WILL MY SHARES BE WORTH?

         -        If you own Class A and Class I shares and the Fund receives
                  your redemption request by 4:00 p.m. ET (or when the NYSE
                  closes), you will receive that day's NAV.

         -        If you own Class B and Class C shares and the Fund receives
                  your redemption request by 4:00 p.m. ET (or when the NYSE
                  closes), you will receive that day's NAV, minus the amount of
                  any applicable CDSC.

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.

         -        Call your Shareholder Servicing Agent or State Street Bank and
                  Trust Company at 1-800-480-4111 to relay your redemption
                  request.



                                       44
<PAGE>   441

         -        Your redemption proceeds will be mailed or wired to the
                  commercial bank account you designated on your Account
                  Application Form.

         -        State Street Bank and Trust Company may charge you a wire
                  redemption fee. The current charge is $7.00.

   
         -        One Group uses reasonable procedures to confirm that
                  instructions given by telephone are genuine. These procedures
                  include recording telephone instructions and asking for
                  personal identification. If these procedures are followed, One
                  Group will not be responsible for any loss, liability, cost or
                  expense of acting upon unauthorized or fraudulent
                  instructions; you bear the risk of loss.
    

         -        Redemptions from your IRA account may not be made by
                  telephone.

CAN I REDEEM ON A SYSTEMATIC BASIS?

If you have an account value of at least $10,000, you may elect to receive
monthly, quarterly or annual payments of not less than $100 each.

         -        Select the "Systematic Withdrawal Plan" option on the Account
                  Application Form.

         -        Specify the amount you wish to receive and the frequency of
                  the payments.

         -        You may designate a person other than yourself as the payee.

         -        There is no charge for this service.

         -        If you select this option, please keep in mind that:

         1.       It may not be in your best interest to buy additional Class A
                  shares while participating in a Systematic Withdrawal Plan.
                  This is because Class A shares have an up-front sales charge.

         2.       If you own Class B or Class C shares, you or your designated
                  payee may receive systematic payments provided the payments
                  are limited to no more than 10% of your account value
                  annually, measured from the date the redemption request is
                  received.

         3.       If you are age 70 1/2, you may elect to receive payments to
                  the extent that the payment represents a minimum required
                  distribution from an IRA or other qualifying retirement plan.

         4.       If the amount of the systematic payment exceeds the income
                  earned by your account since the previous payment under the
                  Systematic Withdrawal Plan, payments will be made by redeeming
                  some of your shares. This will reduce the amount of your
                  investment.

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

         -        All redemptions will be for cash.

   
         -        If you redeem shares for which you paid by check, and One
                  Group has not yet received payment on the check, One Group
                  will delay forwarding your redemption proceeds for 10 or more
                  days until payment has been collected from your bank.

         -        Because of the high cost of handling small investments, One
                  Group charges a sub-minimum account fee. Accounts under $1,000
                  that are not participating in a Systematic Investment Plan
                  will be assessed an annual fee of $10.00. The sub-minimum
                  account fee will not apply to IRA accounts and the accounts of
                  employees of BANK ONE CORPORATION and its affiliates.
    



                                       45
<PAGE>   442

   
         -        One Group may suspend your ability to redeem when:
    

         1.       Trading on the NYSE is restricted.

         2.       The NYSE is closed (other than weekend and holiday closings).

         3.       The SEC has permitted a suspension.

         4.       An emergency exists.

The Statement of Additional Information offers more detail about this process.

         -        You generally will recognize a gain or loss on a redemption
                  for Federal income tax purposes. You should talk to your tax
                  adviser before making a redemption.


   
- -
    



                                       46
<PAGE>   443


SHAREHOLDER INFORMATION

VOTING RIGHTS

The Funds do not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change a Fund's fundamental investment objective, or approve an
investment advisory contract.

As a Fund shareholder, you have one vote for each share that you own. Each Fund,
and each class of shares within each Fund, vote separately on matters relating
solely to that Fund or class, or which affect that Fund or class differently.
However, all shareholders will have equal voting rights on matters that affect
all shareholders equally.

   
BANK ONE CORPORATION (One First National Plaza, Chicago, Illinois, 60670),
through its affiliates, may be deemed for purposes of the Investment Company Act
of 1940, to control the Funds. This is because as of December 1,1998, BANK ONE
CORPORATION or its affiliates possessed the power to vote substantially all of
the Class I shares of the Funds.
    


                                       47

<PAGE>   444
   
    


DIVIDEND POLICIES

DIVIDENDS

The Funds generally declare dividends monthly. Dividends are distributed on the
first Business Day of each month. Capital gains, if any, for all Funds are
distributed at least annually.

The Funds pay dividends and distributions on a per-share basis. This means that
the value of your shares will be reduced by the amount of the payment. If you
purchase shares shortly before the record date for a dividend or the
distribution of capital gains, you will pay the full price for the shares and
receive some portion of the price back as a taxable dividend or distribution.

Dividends payable on Class I shares will be more than those payable on other
classes of shares. This is because Class A, Class B and Class C shares have
higher distribution expenses.

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund and class, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.

SPECIAL DIVIDEND RULES FOR CLASS B SHARES

Class B shares received as dividends and capital gains distributions will be
accounted for separately. Each time any Class B shares (other than those in the
sub-account) convert to Class A shares, a percentage of the Class B shares in
the sub-account will also convert to Class A shares. (See "Conversion Feature.")

TAX TREATMENT OF THE FUNDS

TAX STATUS OF THE FUND

Each Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Funds qualify, as they have in the past, they will
pay no federal income tax on the earnings they distribute to shareholders.

TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of shares of the Funds generally will produce
either a taxable gain or a loss. You are responsible for any tax liabilities
generated by your transactions.

TAXATION OF DISTRIBUTIONS

Dividends you receive from a Fund, whether reinvested or received in cash, will
be taxable to you. Dividends from a Fund's net investment income (including, for
this purpose, net short-term capital gains) will be taxable as ordinary income
and 


                                       48
<PAGE>   445

dividends from a Fund's long-term capital gains will be taxable to you as
such, regardless of how long you have held the shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

TAXATION OF RETIREMENT PLANS

Distributions by the Funds to qualified retirement plans will not be taxable.
However, if shares are held by a plan that ceases to qualify for tax-exempt
treatment or by an individual who has received shares as a distribution from a
retirement plan, the distributions will be taxable to the plan or individual as
described in "Taxation of Distributions." If you are considering purchasing
shares with qualified retirement plan assets, you should consult your tax
advisor for a more complete explanation of the Federal, state, local and (if
applicable) foreign tax consequences of making such an investment.

TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Funds provide you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Funds or their shareholders.

SHAREHOLDER INQUIRIES

If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.

REPORTING

   
In March and September you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.
    





                                       49
<PAGE>   446


ORGANIZATION AND MANAGEMENT OF THE FUNDS

THE FUNDS

   
Each Fund is a series of One Group, an open-end management investment company.
One Group currently offers 49 separate Funds. Four of the Funds are described in
this prospectus; the other Funds are described in separate prospectuses. Each
Fund described in this prospectus is diversified. Each Fund is supervised by the
Board of Trustees.
    

THE BOARD OF TRUSTEES

   
The Trustees oversee the management and administration of the Funds. The
Trustees are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Funds
to the officers of One Group.
    

THE ADVISOR

   
Banc One Investment Advisors makes the day-to-day investment decisions for the
Funds and continuously reviews, supervises and administers the Funds' investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets. For the fiscal year ended June
30, 1998, the Funds paid investment advisory fees of less than 0.01% of the
average daily net assets of One Group Investor Conservative Growth Fund, and
0.031%, 0.037% and 0.041% of the average daily net assets of One Group Investor
Growth Fund, One Group Investor Growth and Income Fund, and One Group Investor
Balanced Fund, respectively.
    

No single person is responsible for managing the assets of the Funds. Rather,
investment decisions for the Funds are made by committee. Banc One Investment
Advisors also serves as the advisor to the underlying mutual funds, for which it
receives a fee.

THE DISTRIBUTOR

The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Funds and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.

THE ADMINISTRATOR AND SUB-ADMINISTRATOR

The One Group Services Company also serves as the Funds' administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory compliance and
reporting. For these services, The One Group Services Company receives an annual
fee of .10% of each Fund's average daily net assets, on the first $500,000,000
in Fund assets. The fee declines to .075% on net assets between $500,000,000 and
$1 billion, and to .05% on assets over $1 billion. The fee is calculated daily
and paid monthly. Banc One Investment Advisors, the Sub-Administrator, provides
office space, equipment, and facilities, as well as legal and regulatory
support.

THE TRANSFER AGENT, CUSTODIAN AND SUB-CUSTODIAN

   
State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528, or
your Shareholder Servicing Agent, if appropriate, handles shareholder
recordkeeping and statementing, distributes dividends, and processes buy and
sell requests. As the Funds' custodian, State Street holds the Funds' assets,
settles all portfolio trades and assists in calculating the Funds' net asset
values. Bank One Trust Company, N.A. serves as sub-custodian in connection with
One Group's
    


                                       50
<PAGE>   447

securities lending activities under an agreement with State Street Bank and
Trust Company. Bank One Trust Company, N.A. is paid a fee for this service.

YEAR 2000

   
Preparing for the Year 2000 is a high priority for One Group. Both The One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
One Group. Year 2000 remediation efforts are directed toward both information
technology and non-information technology systems. Non-information technology
systems include elevators, photocopy machines, and facsimile machines, and
should have no significant impact on the delivery of services to One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.

Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.

Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipate that the move to Year 2000 will have a material impact on
their ability to continue to provide the Funds with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.
    





                                       51
<PAGE>   448




DETAILS ABOUT THE FUNDS' INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The following is a brief description of the principal investment policies of the
underlying funds.

ONE GROUP(R) PRIME MONEY MARKET FUND

One Group(R) Prime Money Market Fund seeks current income with liquidity and
stability of principal. The fund intends to comply with the regulations of the
Securities and Exchange Commission applicable to money market funds using the
amortized cost method for calculating net asset value. These regulations impose
certain quality, maturity and diversification restraints on investments by the
fund. Under these regulations, the fund will invest only in U.S.
dollar-denominated securities, will maintain an average maturity on a
dollar-weighted basis of 90 days or less, and will acquire only "eligible
securities" that present minimal credit risks and are treated as having a
maturity of 397 days or less.

   
ONE GROUP(R) SHORT-TERM BOND FUND

One Group(R) Short-Term Bond Fund seeks current income consistent with
preservation of capital through investment in high and medium-grade fixed-income
securities. The Fund normally invests at least 80% of total assets in debt
securities of all types with short to intermediate maturities. Debt securities
include bonds, notes and other obligations. At least 65% of the Fund's total
assets will consist of bonds rated in one of the four highest investment grade
categories at the time of investment, or if unrated, determined by Banc One
Investment Advisors to be of comparable quality, some of which may be subject to
repurchase agreements. Many investments will satisfy both requirements. Under
normal market conditions, it is anticipated that the fund's average weighted
maturity will range between one and five years. The fund may also purchase
taxable or tax-exempt municipal securities. Up to 20% of the fund's total assets
may be invested in preferred stocks. This Fund was formerly called The One Group
Limited Volatility Bond Fund.
    

ONE GROUP(R) INTERMEDIATE BOND FUND

   
One Group(R) Intermediate Bond Fund seeks current income consistent with the
preservation of capital through investments in high and medium-grade
fixed-income securities with intermediate maturities. The fund will normally
invest at least 80% of total assets in debt securities of all types. Debt
securities include bonds, notes and other obligations. At least 65% of the
fund's total assets will consist of bonds rated in one of the four highest
investment grade categories at the time of investment, or if unrated, determined
by Banc One Investment Advisors to be of comparable quality, and at least 50% of
total assets will consist of obligations issued by the U.S. government or its
agencies and instrumentalities, some of which may be subject to repurchase
agreements. Many investments will satisfy both requirements. The Fund also may
invest in more speculative debt securities if they present attractive
opportunities and are rated in the lowest investment grade category. The fund
may also purchase taxable or tax-exempt municipal securities. Under normal
market conditions, it is anticipated that the fund's average weighted maturity
will range between three and ten years. Up to 20% of the fund's total assets may
be invested in preferred stocks.
    

ONE GROUP(R) INCOME BOND FUND

One Group(R) Income Bond Fund seeks a high level of current income by investing
primarily in a diversified portfolio of high, medium and low grade debt
securities. The Fund normally will invest at least 70% of its total assets in
debt securities of all types rated as investment grade at the time of investment
or, if unrated, determined by Banc One Investment Advisors to be of comparable
quality. In addition, up to 30% of the Fund's total assets may be invested in
convertible securities, preferred stock, loan participations and debt securities
rated below investment grade or, if unrated, determined by Banc One Investment
Advisors to be of comparable quality. Securities rated below investment grade
are called "high yield bonds," "non-investment grade bonds" and "junk bonds."
These securities are rated in the fifth or lower rating categories, for example,
BB or lower by Standard & Poor's Corporation ("S&P") and Ba or lower by Moody's
Investors Service, Inc. 


                                       52
<PAGE>   449

("Moody's"), and are considered to have speculative characteristics. Even though
it may invest in debt securities in all rating categories, the Fund will not
invest more than 20% of its total assets in securities rated below the fifth
rating category. As a matter of fundamental policy, at least 65% of the Fund's
total assets will consist of bonds. The Fund also may purchase taxable or
tax-exempt municipal securities.

Under normal market conditions, it is anticipated that the Fund's average
weighted maturity will range between five and twenty years. The Fund may shorten
its effective weighted average maturity to as little as two years if deemed
appropriate for temporary defensive purposes.

   
ONE GROUP(R) BOND FUND

One Group(R) Bond Fund seeks to maximize total return by investing primarily in
a diversified portfolio of intermediate and long-term debt securities. The Fund
invests in all types of debt securities rated as investment grade, as well as
convertible securities, preferred stock, and loan participations. The Fund's
average weighted maturity will normally range between four and twelve years,
although the Fund may shorten its weighted average if deemed appropriate for
temporary defensive purposes. The Fund invests at least 65% of its total assets
in debt securities of all types with intermediate to long maturities. As a
matter of fundamental policy, at least 65% of the Fund's total assets will
consist of bonds. The Fund also may purchase taxable or tax-exempt municipal
securities.
    

ONE GROUP(R) HIGH YIELD BOND FUND

The Fund seeks a high level of current income by investing primarily in a
diversified portfolio of debt securities which are rated below investment grade
or unrated. Capital appreciation is a secondary objective. The Fund invests in
all types of high yield, high risk debt securities. The Fund also may invest in
convertible securities, preferred stock, common stock, and loan participations.
The Fund's weighted average maturity will normally range between five and ten
years, although the Fund may shorten its weighted average maturity to as little
as two years if deemed appropriate for temporary defensive purposes. The Fund
normally invests at least 80% of the Fund's total assets in debt securities
which are rated below investment grade or unrated, although the Fund may invest
up to 100% of the Fund's total assets in such securities. Securities rated below
investment grade are called "high yield bonds," "non-investment grade bonds,"
"below investment grade bonds" and "junk bonds." These securities are rated in
the fifth or lower rating categories (for example, BB or lower by Standard &
Poor's Corporation and Ba or lower by Moody's Investors Service, Inc.), and are
considered to be speculative. The Fund also may invest up to 20% of its total
assets in other securities, including investment grade debt securities. As a
matter of fundamental policy, at least 65% of the Fund's total assets will
consist of bonds.

ONE GROUP(R) GOVERNMENT BOND FUND

   
One Group(R) Government Bond Fund seeks a high level of current income with
liquidity and safety of principal. The Fund will limit its investments to
securities issued by the U.S. Government and its agencies and instrumentalities
or related to securities issued by the U.S. Government and its agencies and
instrumentalities. At least 65% of the total assets of the Fund will be invested
in obligations guaranteed as to principal and interest by the U.S. government or
its agencies and instrumentalities, some of which may be subject to repurchase
agreements, and other securities representing an interest in or collateralized
by mortgages that are issued or guaranteed by the U.S. government, its agencies
or instrumentalities. The average weighted maturity of the fund is expected to
be between three and fifteen years, however, the Fund's average weighted
remaining maturity may be outside this range if warranted by market conditions.
The balance of the Fund's assets may be invested in debt securities and taxable
or tax-exempt municipal securities.
    

   
ONE GROUP(R) ULTRA SHORT-TERM BOND FUND

One Group(R) Ultra Short-Term Bond Fund seeks a high level of current income
consistent with low volatility of principal by investing in a diversified
portfolio of short-term investment grade securities. The Fund normally invests
at least 80% of its total assets in debt securities of all types, including
money market instruments. In addition, up to 20% of the fund's total assets may
be invested in other securities, including preferred stock. The fund will invest
in adjustable rate mortgage pass-through securities and other securities
representing an interest in or collateralized by mortgages with periodic
interest rate resets, some of which may be subject to repurchase agreements.
These securities often are issued or guaranteed by the
    



                                       53
<PAGE>   450

   
U.S. government, its agencies or instrumentalities. However, the Fund also may
purchase mortgage-backed securities that are issued by non-governmental
entities. Such securities may or may not have private insurer guarantees as to
timely payments. The fund also may purchase mortgage and interest rate swaps and
interest rate floors and caps. The fund also may employ other investment
techniques to enhance returns, such as loans of fund securities, mortgage dollar
rolls, repurchase agreements, options contracts and reverse repurchase
agreements. The Fund will maintain a maximum duration of approximately two
years. This Fund was formerly called One Group Ultra Short-Term Income Fund.

ONE GROUP(R) MID CAP VALUE FUND

One Group(R) Mid Cap Value Fund seeks capital appreciation with the secondary
goal of achieving current income by investing primarily in equity securities.
The Fund will invest mainly in equity securities with below-market average
price-to-earnings and price-to-book value ratios. The issuer's soundness and
earnings prospects also will be considered. If Banc One Investment Advisors
determines that a company's fundamentals are declining or that the company's
ability to pay dividends has been impaired, it likely will eliminate the Fund's
holding of the company's stock. The Fund normally invests at least 80% of the
value of its total assets in equity securities consisting of common stocks and
debt securities and preferred stocks that are convertible into common stocks.
The Fund also may enter into options and futures transactions. The balance of
the fund's assets will be held in cash equivalents. This Fund was formerly
called One Group Disciplined Value Fund.
    

ONE GROUP(R) INTERNATIONAL EQUITY INDEX FUND

   
One Group(R) International Equity Index Fund seeks 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, Australasia and Far East Index ("MSCI EAFE GDP Index" or
"EAFE GDP Index").1 The Fund normally will invest at least 65% of the value of
its total assets in foreign equity securities, which are representative of the
Index and secondarily in stock index futures. The Fund's investments will
consist of common stocks (including sponsored and unsponsored American
Depository Receipts) and preferred stocks, securities convertible into common
stocks (only if they are listed on registered exchanges or actively traded in
the over-the-counter market), warrants and depository receipts. No more than 10%
of the fund's net assets will be held in cash or cash equivalents. The fund may
invest up to 10% of its net assets in securities of emerging international
markets. A substantial portion of the fund's assets will be denominated in
foreign currencies.

ONE GROUP(R) DIVERSIFIED INTERNATIONAL FUND

One Group(R) Diversified International Fund seeks long-term capital growth by
investing primarily in equity securities of foreign issuers. The Fund invests
primarily in the securities of companies located in Europe, Asia and Latin
America. The Fund also will invest in other regions and countries that present
attractive investment opportunities, including developing countries. In
selecting a country for investment, Banc One Investment Advisors analyzes the
global economic and political situation, as well as the securities markets of
selected countries. In selecting individual securities, Banc One Investment
Advisors attempts to track the performance of the individual country's stock
market index. Banc One Investment Advisors uses its best judgment, experience
and certain quantitative techniques to determine the countries in which the Fund
will invest, as well as the amount invested in each country. Fund assets will be
invested in at least three countries. The Fund will invest at least 65% of its
total assets in foreign equity securities, consisting of common stocks
(including American Depository Receipts), preferred stocks, rights, warrants,
convertible securities, foreign currencies and options on foreign currency, and
other equity securities. Up to 20% of the Fund's total assets may be invested in
U.S. government securities, other investment grade fixed income securities, cash
and cash equivalents.

ONE GROUP(R) LARGE CAP GROWTH FUND

One Group(R) Large Cap Growth Fund seeks long-term capital appreciation and
growth of income by investing primarily in equity securities. The Fund will
normally invest at least 65%, of the value of its total assets in equity
securities consisting of 
    

- --------
1 "MSCI EAFE GDP Index" is a registered service mark of Morgan Stanley Capital
International, which does not sponsor and is in no way affiliated with the fund.




                                       54
<PAGE>   451


   
common stocks, warrants and any rights to purchase common stocks. To achieve its
objective, the Fund will invest primarily in equity securities of large, well
established companies with weighted average capitalization in excess of the
market median capitalization of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500 Index")2. The Fund may invest the remainder of its assets in
nonconvertible fixed income securities, repurchase agreements, options and
futures contracts, securities issued by the U.S. government and its agencies and
instrumentalities, and cash equivalents. This Fund was formerly called One Group
Large Company Growth Fund.

ONE GROUP(R) LARGE CAP VALUE FUND

One Group(R) Large Cap Value Fund seeks capital appreciation with the incidental
goal of achieving current income by investing primarily in equity securities.
The Fund will invest in equity securities of large capitalization companies that
are believed to be selling below their long-term investment values. The average
weighted market capitalization of the companies in which the Fund invests will
normally exceed the median market capitalization of the S&P 500 Index. In
addition, the Fund may invest in stock of companies which have "breakup" values
well in excess of current market values or which have uniquely undervalued
corporate assets. The Fund normally will invest at least 80% of the value of its
total assets in equity securities consisting of common stocks and debt
securities and preferred stocks which are convertible into common stocks. The
remainder of the fund's assets will be held in cash equivalents. This Fund was
formerly called One Group Large Company Value Fund.

ONE GROUP(R) MID CAP GROWTH FUND
    

   
One Group(R) Mid Cap Growth Fund seeks growth of capital and, secondarily,
current income by investing primarily in equity securities. The Fund invests in
securities that have the potential to produce above-average earnings growth per
share over a one-to-three year period. Typically, the Fund acquires shares of
established companies with a history of above-average growth, as well as those
companies expected to enter periods of above-average growth. Not all the
securities purchased by the Fund will pay dividends. The Fund also invests in
smaller companies in emerging growth industries. At least 80% of the value of
its total assets will be invested in equity securities consisting of common
stocks and debt securities and preferred stocks that are convertible into common
stocks. The Fund also may enter into options and futures transactions. The
remainder of the fund's assets will be held in cash equivalents. This Fund was
formerly called The One Group Growth Opportunities Fund.

ONE GROUP(R) DIVERSIFIED MID CAP FUND

One Group(R) Diversified Mid Cap Fund seeks long-term capital growth by
investing primarily in equity securities of companies with intermediate
capitalizations. The Fund invests primarily in equity securities of companies
with market capitalizations of $500 million to $5 billion. Banc One Investment
Advisors believes that there are many companies of this size with strong growth
potential, stable market share, and an ability to quickly respond to new
business opportunities, all of which increase their likelihood of obtaining
superior levels of profitability and investment returns. The Fund normally
invests at least 65% of its total assets in common and preferred stock, rights,
warrants, convertible securities, and other equity securities. While the Fund
invests primarily in securities of U.S. companies, up to 25% of its total assets
may be invested in equity securities of foreign issuers. Up to 20% of the Fund's
total assets may be invested in U.S. Government Securities, other investment
grade fixed income securities, cash and cash equivalents.

ONE GROUP(R) DIVERSIFIED EQUITY FUND

One Group(R) Diversified Equity Fund seeks long-term capital growth and growth
of income with a secondary objective of providing a moderate level of current
income. The Fund invests primarily in common stocks of overlooked or undervalued
companies that have the potential for earnings growth over time. The Fund uses a
multi-style approach, meaning that it may invest across varied capitalization
levels targeting both value and growth oriented companies. Because the Fund
seeks return over the long term, Banc One Investment Advisors will not attempt
to time the market. The Fund normally will invest at least 65% of the value of
its total assets in securities with the characteristics described above.


- ----------------
2 "S&P 500" is a registered trademark of Standard & Poor's Corporation, which
does not sponsor and is in no way affiliated with the Fund.
    


                                       55
<PAGE>   452


   
Although the Fund intends to invest all of its assets in such securities, up to
35% of its total assets may be held in cash or invested in U.S. Government
Securities, other investment grade fixed-income securities cash and cash
equivalents. This Fund was formerly called One Group Value Growth Fund. 
    

   
ONE GROUP(R) SMALL CAP GROWTH FUND

One Group(R) Small Cap Growth Fund seeks long-term capital growth primarily by
investing in a portfolio of equity securities of small-capitalization and
emerging growth companies. The Fund invests primarily in a portfolio of common
stocks, debt securities, preferred stocks, convertible securities, warrants and
other equity securities of small capitalization companies. Generally, Banc One
Investment Advisors selects a portfolio of companies with a capitalization
equivalent to the median market capitalization of the S&P Small-Cap 600 Index,3
although the Fund may occasionally hold securities of companies whose market
capitalizations are considerably larger if doing so contributes to the Fund's
investment objective. At least 65% of the value of the Fund's total assets
normally will be invested in securities with the characteristics described
above. Up to 35% of its total assets may be held in cash or invested in U.S.
Government Securities, other investment grade fixed-income securities and cash
equivalents. This Fund was formerly called One Group Small Capitalization Fund.
    

   
ONE GROUP(R) SMALL CAP VALUE FUND

One Group(R) Small Cap Value Fund seeks long-term capital growth by investing
primarily in equity securities of companies with small capitalizations. The Fund
invests primarily in equity securities of small domestic issuers with market
capitalizations of $100 million to $2 billion. In reviewing investment
opportunities, Banc One Investment Advisors looks for high quality management, a
dominant position in a major product line, significant equity ownership
positions by management, a sound financial position, and a relatively high rate
of return on invested capital. The Fund also will invest in companies that
demonstrate a potential for earnings growth due to management changes, new
products, or a changing marketplace. The Fund normally invests at least 65% of
its total assets in common and preferred stocks, rights, warrants, convertible
securities, and other equity securities of companies described above. While the
Fund invests primarily in securities of U.S. companies, up to 25% of its total
assets may be invested in equity securities of foreign issuers. Up to 20% of the
Fund's total assets may be invested in U.S. Government Securities, other
investment grade fixed income securities, cash and cash equivalents.

ONE GROUP(R) EQUITY INCOME FUND

One Group(R) Equity Income Fund seeks current income through regular payment of
dividends with the secondary goal of achieving capital appreciation by investing
primarily in equity securities. The Fund attempts to keep its yield above the
S&P 500 Index by investing in common stocks of corporations which regularly pay
dividends, although continued payment of dividends cannot be assured. The fund
will invest primarily in stocks with favorable, long-term fundamental
characteristics, but stocks of companies that are out of favor in the financial
community also may be purchased. The Fund normally invests at least 80% of the
value of its total assets in equity securities consisting of common stocks, and
debt securities and preferred stocks which are convertible into common stocks.
The Fund also may enter into options and futures transactions. The balance of
the Fund's assets will be held in cash equivalents. This Fund was formerly
called One Group Income Equity Fund.

ONE GROUP(R) EQUITY INDEX FUND

One Group(R) Equity Index Fund seeks investment results that correspond to the
aggregate price and dividend performance of the securities in the S&P 500 Index.
The Fund normally invests in many of the stocks which comprise the S&P 500 Index
and secondarily in stock index futures. Cash reserves will not normally exceed
10% of the fund's net assets. The Advisor generally selects stocks for the Fund
in the order of their weightings in the S&P 500 Index beginning with the
heaviest weighted stocks. The percentage of the Fund's assets to be invested in
each stock is approximately the same as the percentage it represents in the S&P
500 Index.




- ----------------------------
3 "S& P Small-Cap 600" is a registered trademark of Standard & Poor's
Corporation, which does not sponsor and is in no way affiliated with the Fund.
    




                                       56
<PAGE>   453

Details about each underlying fund's investment practices and the risks
associated with those practices can be found in Appendix B.

INVESTMENT POLICIES

Each Fund's investment objective and the investment policies summarized below
are fundamental. This means that they cannot be changed without the consent of a
majority of the outstanding shares of the Funds. The full text of the
fundamental policies can be found in the Statement of Additional Information.

   
Each Fund may not:
    


1.       Purchase an issuer's securities if as a result more then 5% of its
         total assets would be invested in the securities of that issuer or the
         Fund would own more than 10% of the outstanding voting securities of
         any of that issuer. This does not include securities issued or
         guaranteed by the United States, its agencies or instrumentalities,
         securities of other registered investment companies and repurchase
         agreements involving these securities. This restriction applies with
         respect to 75% of a Fund's total assets.
   
    

2.       Concentrate its investments in the securities of one or more issuers
         conducting their principal business in a particular industry or group
         of industries. This does not include obligations issued or guaranteed
         by the U.S. government or its agencies and instrumentalities and
         repurchase agreements involving such securities.

3.       Make loans, except that a Fund may (i) purchase or hold debt
         instruments in accordance with its investment objective and policies;
         (ii) enter into repurchase agreements; and (iii) engage in securities
         lending.

Additional investment policies can be found in the Statement of Additional
Information.

PORTFOLIO TURNOVER

Portfolio turnover may vary greatly from year to year as well as within a
particular year. Higher portfolio turnover rates will likely result in higher
transaction costs to the Funds and may result in additional tax consequences to
you. To the extent portfolio turnover results in short-term capital gains, such
gains will generally be taxed at ordinary income tax rates. The portfolio
turnover rate for each Fund for the fiscal year ended June 30, 1998 is shown on
the Financial Highlights. 



                                       57
<PAGE>   454

APPENDIX A

INVESTMENT PRACTICES

The underlying funds invest in a variety of securities and employ a number of
investment techniques. Each security and technique involves certain risks. What
follows is a list of the securities and techniques utilized by the Funds, as
well as the risks inherent in their use. For a more complete discussion, see the
Statement of Additional Information. Following the table is a more complete
discussion of risk.
   
<TABLE>
<CAPTION>

FUND NAME                                                                                       FUND CODE
                                                                                                ---------

<S>                                                                                                    <C>
One Group Funds(R) Prime Money Market Fund                                                             1
One Group Funds(R) Short-Term Bond Fund                                                                2
One Group Funds(R) Intermediate Bond Fund                                                              3
One Group Funds(R) Income Bond Fund                                                                    4
One Group Funds(R) Bond Fund                                                                           5
One Group Funds(R) High Yield Bond Fund                                                                6
One Group Funds(R) Government Bond Fund                                                                7
One Group Funds(R) Ultra Short-Term Bond Fund                                                          8
One Group Funds(R) Mid Cap Value Fund                                                                  9
One Group Funds(R) International Equity Index Fund                                                    10
One Group Funds(R) Diversified International Fund                                                     11
One Group Funds(R) Large Cap Growth Fund                                                              12
One Group Funds(R) Large Cap Value Fund                                                               13
One Group Funds(R) Mid Cap Growth Fund                                                                14
One Group Funds(R) Diversified Mid Cap Fund                                                           15
One Group Funds(R) Diversified Equity Fund                                                            16
One Group Funds(R) Small Cap Growth Fund                                                              17
One Group Funds(R) Small Cap Value Fund                                                               18
One Group Funds(R) Equity Income Fund                                                                 19
One Group Funds(R) Equity Index Fund                                                                  20
</TABLE>
    

   
<TABLE>
<CAPTION>

INSTRUMENT                                                                               FUND CODE      RISK TYPE
- ----------                                                                               ---------      ---------


<S>                                                                                      <C>            <C>      
U.S. TREASURY OBLIGATIONS: Bills, notes, bonds,                                            1-20          Market
STRIPS, and CUBES

TREASURY RECEIPTS: TRs, TIGRs, and CATS.                                                   1-20          Market

U.S. GOVERNMENT AGENCY SECURITIES: Securities issued                                       1-20          Market
by agencies and instrumentalities of the U.S.                                                            Credit
Government. These include Ginnie Mae, Fannie Mae,
and Freddie Mac.

CERTIFICATES OF DEPOSIT: Negotiable instruments with                                     1-6,8-20        Market
a stated maturity.                                                                                       Credit
                                                                                                        Liquidity

TIME DEPOSITS: Non-negotiable receipts issued by a                                       1-6,8-20       Liquidity
bank in exchange for the deposit of funds.                                                               Credit
Market


</TABLE>
    



                                       58
<PAGE>   455

   
<TABLE>
<CAPTION>

INSTRUMENT                                                                               FUND CODE      RISK TYPE
- ----------                                                                               ---------      ---------
<S>                                                                                      <C>            <C>
COMMON STOCK: Shares of ownership of a company.                                           6,9-20         Market

REPURCHASE AGREEMENTS: The purchase of a security                                          1-20          Credit
and the simultaneous commitment to return the                                                            Market
security to the seller at an agreed upon price on                                                       Liquidity
an agreed upon date. This is treated as a loan.

REVERSE REPURCHASE AGREEMENT: The sale of a security                                       1-20          Market
and the simultaneous commitment to buy the security                                                     Leverage
back at an agreed upon price on an agreed upon date.
This is treated as a borrowing by a Fund.

SECURITIES LENDING: The lending of up to 33 1/3% of                                        1-20          Credit
a Fund's total assets. In return the Fund will                                                           Market
receive cash, other securities, and/or letters of                                                       Leverage
credit.

WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS:                                            1-20          Market
Purchase or contract to purchase securities at a                                                        Leverage
fixed price for delivery at a future date.                                                              Liquidity
                                                                                                         Credit

INVESTMENT COMPANY SECURITIES:  Shares of other                                          1-6,8-20        Market
mutual funds, including One Group money market funds and
shares of other investment companies for which Banc One
Investment Advisors serves as investment advisor or
administrator. Banc One Investment Advisors will waive certain
fees when investing in funds for which it serves as investment
advisor.

CONVERTIBLE SECURITIES: Bonds or preferred stock that                                    3-6,8-20        Market
convert to common stock.                                                                                 Credit

CALL AND PUT OPTIONS: A call option gives the buyer                                        3-20        Management
the right to buy, and obligates the seller of the                                                       Liquidity
option to sell, a security at a specified price. A put                                                   Credit
option gives the buyer the right to sell, and obligates                                                  Market
the seller of the option to buy, a security at a                                                        Leverage
specified price. The Funds will sell only covered call
and secured put options.

FUTURES AND RELATED OPTIONS: A contract providing for                                      2-20        Management
the future sale and purchase of a specified amount of a                                                  Market
specified security, class of securities, or an index at                                                  Credit
a specified time in the future and at a specified price.                                                Liquidity
                                                                                                        Leverage
</TABLE>
    





                                       59
<PAGE>   456
   
<TABLE>
<CAPTION>

INSTRUMENT                                                                               FUND CODE      RISK TYPE
- ----------                                                                               ---------      ---------

<S>                                                                                      <C>          <C>                   
Real Estate Investment Trusts ("REITs"): Pooled                                            2-20         Liquidity
investment vehicles which invest primarily in income                                                   Management
producing real estate or real estate related loans                                                       Market
or interest.                                                                                           Pre-payment
                                                                                                           Tax
                                                                                                       Regulatory

BANKERS' ACCEPTANCES: Bills of exchange or time drafts                                    1-6,8,9        Credit
drawn on and accepted by a commercial bank. Maturities                                     12-20        Liquidity
are generally six months or less.                                                                        Market

COMMERCIAL PAPER: Secured and unsecured short-term                                       1-6,8,9,        Credit
promissory notes issued by corporations and other                                          12-20        Liquidity
entities. Maturities generally vary from a few days                                                      Market
to nine months.

FOREIGN SECURITIES: Stocks or debt issued by foreign                                     1-6,8-19        Market
companies, as well as commercial paper of foreign                                                       Political
issuers and obligations of foreign banks, overseas                                                      Liquidity
branches of U.S. banks and supranational entities.                                                       Foreign
Includes American Depository Receipts.                                                                  Investment

RESTRICTED SECURITIES: Securities not registered under                                   1-6,8-20       Liquidity
the Securities Act of 1933, such as privately placed                                                     Market
commercial paper and Rule 144A securities.                                                               Credit

VARIABLE AND FLOATING RATE INSTRUMENTS: Obligations                                      1-9,11-20       Market
with interest rates which are reset daily, weekly,                                                       Credit
quarterly or some other period and which may be                                                         Liquidity
payable to the Fund on demand.

WARRANTS: Securities, typically issued with preferred                                  1,4,6,10-13,      Market
stock or bonds, that give the holder the right to                                        15,17-19        Credit
buy a proportionate amount of common stock at a
specified price.

PREFERRED STOCK: A class of stock that generally                                      2-6, 10,11,13,     Market
pays a dividend at a specified rate and has                                              15,17-19
preference over common stock in the payment of
dividends and in liquidation.

MORTGAGE-BACKED SECURITIES: Debt obligations secured                                     1-8,15,18     Pre-payment
by real estate loans and pools of loans. These                                                           Market
include collateralized mortgage obligations                                                              Credit
("CMOs"), Real Estate Investment Conduits                                                              Regulatory
("REMICs"), and Stripped Mortgage-Backed Securities
("SMBS").
</TABLE>
    




                                       60

<PAGE>   457
   
<TABLE>
<CAPTION>


INSTRUMENT                                                                               FUND CODE      RISK TYPE
- ----------                                                                               ---------      ---------

<S>                                                                                     <C>            <C>        
DEMAND FEATURES: Securities that are subject to puts                                    1-6,8,15,18      Market
and standby commitments to purchase the securities                                                      Liquidity
at a fixed price (usually with accrued interest)                                                       Management
within a fixed period of time following demand by
a Fund.

ASSET-BACKED SECURITIES: Securities secured by company                                  1-6,8,15,18    Pre-payment
receivables, home equity loans, truck and auto loans,                                                    Market
leases, credit card receivables and other securities                                                     Credit
backed by other types of receivable or other assets.                                                   Regulatory

MORTGAGE DOLLAR ROLLS: A transaction in which a Fund                                        2-8        Pre-payment
sells securities for delivery in a current month and                                                     Market
simultaneously contracts with the same party to                                                        Regulatory
repurchase similar but not identical securities on a
specified future date.

ADJUSTABLE RATE MORTGAGE LOANS ("ARMs"): Loans in a                                         2-8        Pre-payment
mortgage pool which provide for a fixed initial                                                          Market
mortgage interest rate for a specified period of time,                                                   Credit
after which the rate may be subject to periodic                                                        Regulatory
adjustments.

CORPORATE DEBT SECURITIES:  Corporate bonds and                                            3-6,8         Market
non-convertible debt securities.                                                                         Credit

SWAPS, CAPS AND FLOORS: A Fund may enter into these                                        2-20          Market
transactions to manage its exposure to changing                                                        Management
interest rates and other factors. Swaps involve an                                                       Credit
exchange of obligations by two parties. Caps and                                                        Liquidity
floors entitle a purchaser to a principal amount 
from the seller of the cap or floor to the extent
that a specified index exceeds or falls below a
predetermined interest rate or amount.

NEW FINANCIAL PRODUCTS: New options and futures                                            3-20        Management
contracts, and other financial products continue to be                                                   Credit
developed and the Fund may invest in such options,                                                       Market
contracts and products.                                                                                 Liquidity

STRUCTURED INSTRUMENTS: Debt securities issued by                                           3-8          Market
agencies and instrumentalities of the U.S. government,                                                  Liquidity
banks, municipalities, corporations and other                                                          Management
businesses whose interest and/or principal payments                                                      Credit
are indexed to foreign currency exchange rates,                                                          Foreign
interest rates, or one or more other referenced indices.                                               Investment


</TABLE>
    





                                       61
<PAGE>   458
   
<TABLE>
<CAPTION>

INSTRUMENT                                                                               FUND CODE      RISK TYPE
- ----------                                                                               ---------      ---------
<S>                                                                                       <C>          <C>
MUNICIPAL SECURITIES: Securities issued by a state or                                      2-6,8         Market
political subdivision to obtain funds for various public                                                 Credit
purposes. Municipal securities include private activity                                                 Political
bonds and industrial development bonds, as well as                                                         Tax
General Obligation Notes, Tax Anticipation Notes, Bond                                                  Regulatory
Anticipation Notes, Revenue Anticipation Notes, 
Project Notes, other short-term tax-exempt obligations, 
municipal leases, and obligations of municipal housing 
authorities and single family revenue bonds.

OBLIGATIONS OF SUPRANATIONAL AGENCIES: Obligations of                                      10,11         Credit
supranational agencies who are chartered to promote                                                      Foreign
economic development and are supported by various                                                      Investment
governments and governmental agencies.

CURRENCY FUTURES AND RELATED OPTIONS: The Fund may                                         10,11       Management
engage in transactions in financial futures and related                                                 Liquidity
options, which are generally described above. The Fund                                                   Credit
will enter into these transactions in foreign                                                            Market
currencies and for hedging purposes only.                                                               Political
                                                                                                        Leverage
                                                                                                         Foreign
                                                                                                       Investment

FORWARD FOREIGN EXCHANGE TRANSACTIONS: Contractual                                         10,11       Management
agreement to purchase or sell one specified currency                                                    Liquidity
for another currency at a specified future date and                                                      Credit
price. The Fund will enter into forward foreign                                                          Market
exchange transactions for hedging purposes only.                                                        Political
                                                                                                        Leverage
                                                                                                         Foreign
                                                                                                       Investment

ZERO COUPON DEBT SECURITIES: Bonds and other debt                                         2-6,8          Credit
that pay no interest, but are issued at a discount                                                       Market
from their value at maturity. When held to maturity,                                                   Zero Coupon
their entire return equals the difference between 
their issue price and their maturity value.

ZERO-FIXED-COUPON DEBT SECURITIES: Zero-coupon debt                                       2-6,8          Credit
securities which convert on a specified date to                                                          Market
interest-bearing debt securities.                                                                      Zero Coupon

</TABLE>
    




                                       62
<PAGE>   459
   
<TABLE>
<CAPTION>


INSTRUMENT                                                                               FUND CODE      RISK TYPE
- ----------                                                                               ---------      ---------


<S>                                                                                        <C>         <C>
STRIPPED MORTGAGE-BACKED SECURITIES: Derivative                                            3-8         Pre-payment
multi-class mortgage securities usually                                                                  Market
structured with two classes of shares that receive                                                       Credit
different proportions of the interest and principal                                                    Regulatory
from a pool of mortgage backed obligations. These
include IOs and POs.

INVERSE FLOATING RATE INSTRUMENTS: Leveraged variable                                      3-8           Market
rate debt instruments with interest rates that reset                                                    Leverage
in the opposite direction from the market rate of                                                        Credit
interest to which the inverse floater is indexed.

LOAN PARTICIPATIONS AND ASSIGNMENTS: Participations                                        2-6,8         Credit
in, or assignments of all or a portion of loans to                                                      Political
corporations or to governments of the less developed                                                     Foreign
countries ("LDCs").                                                                                    Investment
                                                                                                         Market
                                                                                                        Liquidity

FIXED RATE MORTGAGE LOANS: Investments in fixed rate                                      2-6,8          Credit
mortgage loans or mortgage pools which bear simple                                                     Pre-payment
interest at fixed annual rates and have short to long final                                            Regulatory
maturities.                                                                                              Market

SHORT-TERM FUNDING AGREEMENTS: Investments in                                              1-6,8         Credit
short-term funding agreements issued by banks and                                                       Liquidity
highly rated U.S. insurance companies such as                                                            Market
Guaranteed Investment Contracts (GICs) and Bank
Investment Contracts (BICs).

STANDARD & POOR'S DEPOSITORY RECEIPTS ("SPDRs"): SPDRs                                    9,12-20        Market
represent ownership in a long-term unit investment
trust that holds a portfolio common stocks designed
to track the price performance and dividend yield of
the S&P 500 Index. A SPDR entitles a holder to receive
proportionate quarterly cash distributions corresponding
to the dividends that accrue to the S&P 500 Index stocks
in the underlying portfolio, less trust expenses.

PARTICIPATION INTERESTS: Investments in municipal                                            1           Credit
securities, including municipal leases, from financial                                                   Market
institutions such as commercial and investment banks,                                                      Tax
savings and loan associations and insurance companies. 
These interests may take the form of participations,
beneficial interests in trusts, partnership interests or any
other form of indirect ownership that allows the Funds to
treat the income from the investment as exempt from Federal
Income Tax.
</TABLE>
    




                                       63
<PAGE>   460


INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities held by the underlying funds may fluctuate, as will the
value of the Fund's investments in the underlying funds. Ultimately, the value
of your investment will be affected. Certain investments are more susceptible to
these risks than others.

   
         -        CREDIT RISK. The risk that the issuer of a security, or the
                  counterparty to a contract, will default or otherwise become
                  unable to honor a financial obligation. Credit risk is
                  generally higher for non-investment grade securities. The
                  price and liquidity of a security can be adversely affected
                  prior to actual default as its credit status deteriorates and
                  the probability of default rises.
    

         -        LEVERAGE RISK. The risk associated with securities or
                  practices that multiply small index or market movements into
                  large changes in value. Leverage is often associated with
                  investments in derivatives, but also may be embedded directly
                  in the characteristics of other securities.

         -        HEDGED. When a derivative (a security whose value is based on
                  another security or index) is used as a hedge against an
                  opposite position that the fund also holds, any loss generated
                  by the derivative should be substantially offset by gains on
                  the hedged investment, and vice versa. While hedging can
                  reduce or eliminate losses, it can also reduce or eliminate
                  gains. Hedges are sometimes subject to imperfect matching
                  between the derivative and underlying security, and there can
                  be no assurance that a Fund's hedging transactions will be
                  effective.

         -        SPECULATIVE. To the extent that a derivative is not used as a
                  hedge, the fund is directly exposed to the risks of that
                  derivative. Gains or losses from speculative positions in a
                  derivative may be substantially greater than the derivative's
                  original cost.

         -        LIQUIDITY RISK. The risk that certain securities may be
                  difficult or impossible to sell at the time and the price that
                  normally prevails in the market. The seller may have to lower
                  the price, sell other securities instead or forego an
                  investment opportunity, any of which could have a negative
                  effect on fund management or performance. This includes the
                  risk of missing out on an investment opportunity because the
                  assets necessary to take advantage of it are tied up in less
                  advantageous investments.

         -        MANAGEMENT RISK. The risk that a strategy used by a fund's
                  management may fail to produce the intended result. This
                  includes the risk that changes in the value of a hedging
                  instrument will not match those of the asset being hedged.
                  Incomplete matching can result in unanticipated risks.

         -        MARKET RISK. The risk that the market value of a security may
                  move up and down, sometimes rapidly and unpredictably. These
                  fluctuations may cause a security to be worth less than the
                  price originally paid for it, or less than it was worth at an
                  earlier time. Market risk may affect a single issuer,
                  industry, sector of the economy or the market as a whole.
                  There is also the risk that the current interest rate may not
                  accurately reflect existing market rates. For fixed income
                  securities, market risk is largely, but not exclusively,
                  influenced by changes in interest rates. A rise in interest
                  rates typically causes a fall in values, while a fall in rates
                  typically causes a rise in values. Finally, key information
                  about a security or market may be inaccurate or unavailable.
                  This is particularly relevant to investments in foreign
                  securities.

         -        POLITICAL RISK. The risk of losses attributable to unfavorable
                  governmental or political actions, seizures of foreign
                  deposits, changes in tax or trade statutes, and governmental
                  collapse and war.

         -        FOREIGN INVESTMENT RISK. The risk associated with higher
                  transaction costs, delayed settlements, currency controls and
                  adverse economic developments. This also includes the risk
                  that fluctuations in the exchange rates between the U.S.
                  dollar and foreign currencies may negatively affect an
                  investment. Adverse changes in exchange rates may erode or
                  reverse any gains produced by foreign currency denominated



                                       64
<PAGE>   461

                  investments and may widen any losses. Exchange rate volatility
                  also may affect the ability of an issuer to repay U.S. dollar
                  denominated debt, thereby increasing credit risk.

         -        PRE-PAYMENT RISK. The risk that the principal repayment of a
                  security will occur at an unexpected time, especially that the
                  repayment of a mortgage or asset-backed security occurs either
                  significantly sooner or later than expected. Changes in
                  pre-payment rates can result in greater price and yield
                  volatility. Pre-payments generally accelerate when interest
                  rates decline. When mortgage and other obligations are
                  pre-paid, a Fund may have to reinvest in securities with a
                  lower yield. Further, with early prepayment, a Fund may fail
                  to recover any premium paid, resulting in an unexpected
                  capital loss.

         -        TAX RISK. The risk that the issuer of the securities will fail
                  to comply with certain requirements of the Internal Revenue
                  Code, which would cause adverse tax consequences.

         -        REGULATORY RISK. The risk associated with Federal and state
                  laws which may restrict the remedies that a lender has when a
                  borrower defaults on loans. These laws include restrictions on
                  foreclosures, redemption rights after foreclosure, Federal and
                  state bankruptcy and debtor relief laws, restrictions on "due
                  on sale" clauses, and state usury laws.

         -        ZERO COUPON RISK. The risk associated with changes in interest
                  rates. The market prices of securities structured as zero
                  coupon or pay-in-kind securities are generally affected to a
                  greater extent by interest rate changes. These securities tend
                  to be more volatile than securities which pay interest
                  periodically. This risk is similar to Market Risk, which is
                  described above.




                                       65
<PAGE>   462


APPENDIX B

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors determines that such securities are the equivalent
of investment grade securities. Securities that have received different ratings
from more than one agency are considered investment grade if at least one agency
has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

D-1+       Highest certainty of timely payment. Short-term liquidity, including
           internal operating factors and/or access to alternative sources of
           funds, is outstanding and safety is just below risk-free U.S.
           Treasury obligations.

D-1        Very high certainty of timely payment. Liquidity factors are
           excellent and supported by good fundamental protection factors. Risk
           factors are minor.

D-1-       High certainty of timely payment. Liquidity factors are strong and
           supported by good fundamental protection factors. Risk factors are
           very small.

D-2        Good certainty of timely payment. Liquidity facts and company
           fundamentals are sound. Although ongoing funding needs may enlarge
           total financing requirements, access to capital markets is good. Risk
           factors are small.

D-3        Satisfactory liquidity and other protection factors qualify issues as
           to investment grade. Risk factors are larger and subject to more
           variation. Nevertheless, timely payment is expected.

D-4        Speculative investment characteristics. Liquidity is not sufficient
           to insure against disruption in debt service. Operating factors and
           market access may be subject to a high degree of variation.

D-5        Issuer failed to meet scheduled principal and/interest payments.

STANDARD & POOR'S CORPORATION ("S&P")

A-1        Highest category of commercial paper. Capacity to meet financial
           commitment is strong. Obligations designated with a plus sign (+)
           indicate that capacity to meet financial commitment is extremely
           strong.

A-2        Issues somewhat more susceptible to adverse effects of changes in
           circumstances and economic conditions than obligations in higher
           rating categories. However, the capacity to meet financial
           commitments is satisfactory.

A-3        Exhibits adequate protection parameters. However, adverse economic
           conditions or changing circumstances are more likely to lead to a
           weakened capacity of the obligor to meet its financial commitment on
           the obligation.

B          Regarded as having significant speculative characteristics. The
           obligor currently has the capacity to meet its financial commitment
           on the obligation; however, it faces major ongoing uncertainties
           which could lead to the obligor's inadequate capacity to meet its
           financial commitment on the obligation.




                                       66
<PAGE>   463

C          Currently vulnerable to nonpayment and is dependent upon favorable
           business, financial, and economic conditions for the obligor to meet
           its financial commitment on the obligation.

D          In payment default. The D rating category is used when payments on an
           obligation are not made on the date due even if the applicable grace
           period has not expired, unless Standard & Poor's believes that such
           payments will be made during such grace period. The D rating also
           will be used upon the filing of a bankruptcy petition or the taking
           of a similar action if payments on an obligation are jeopardized.

FITCH'S IBCA, INC. ("Fitch")

F1         Highest capacity for timely repayment. Those issues rated F1+ possess
           a particularly strong credit feature.

F2         Satisfactory capacity for timely repayment although such capacity may
           be susceptible to adverse changes in business, economic or financial
           conditions.

   
F3         Adequate capacity for timely repayment, but more susceptible to
           adverse changes in business, economic or financial conditions than
           for obligations in higher categories.
    

B          Capacity for timely repayment is uncertain and is susceptible to
           adverse changes in business, economic or financial conditions.

C          High risk of default or which are currently in default.

MOODY'S INVESTORS SERVICE ("Moody's")

PRIME-1    Superior ability for repayment.

PRIME-2    Strong ability for repayment.

PRIME-3    Acceptable ability for repayment. The effect of industry
           characteristics and market compositions may be more pronounced.
           Variability in earnings and profitability may result in changes in
           the level of debt protection measurements and may require relatively
           high financial leverage. Adequate alternate liquidity is maintained.

NOTE PRIME Does not fall within any of the Prime rating categories.

DESCRIPTION OF BANK RATINGS

Moody's

These ratings represent Moody's opinion of a bank's intrinsic safety and
soundness.

A          These banks possess exceptional intrinsic financial strength.
           Typically they will be major financial institutions with highly
           valuable and defensible business franchises, strong financial
           fundamentals, and a very attractive and stable operating environment.

B          These banks possess strong intrinsic financial strength. Typically,
           they will be important institutions with valuable and defensible
           business franchises, good financial fundamentals, and an attractive
           and stable operating environment.

C          These banks possess good intrinsic financial strength. Typically,
           they will be institutions with valuable and defensible business
           franchises. These banks will demonstrate either acceptable financial
           fundamentals within a stable operating environment, or better than
           average financial fundamentals within an unstable operating
           environment.



                                       67
<PAGE>   464

D          These banks possess adequate financial strength, but may be limited
           by one or more of the following factors: a vulnerable or developing
           business franchise; weak financial fundamentals; or an unstable
           operating environment.

E          These banks possess very weak intrinsic financial strength, require
           periodic outside support or suggest an eventual need for outside
           assistance. Such institutions may be limited by one or more of the
           following factors: a business franchise of questionable value;
           financial fundamentals that are seriously deficient in one or more
           respects; or a highly unstable operating environment.

DESCRIPTION OF TAXABLE BOND RATINGS

S&P

S&P's credit rating is a current opinion of an obligor's overall financial
capacity (its creditworthiness) to pay its financial obligation.

AAA        The highest rating assigned by S&P. The obligor's capacity to meet
           its financial commitment on the obligation is extremely strong.

AA         The obligor's capacity to meet its financial commitments on the
           obligation is very strong.

A          The obligation is somewhat more susceptible to the adverse effects of
           changes in circumstances and economic conditions than obligations in
           higher rated categories. However, the obligor's capacity to meet its
           financial commitment on the obligation is still strong.

BBB        Exhibits adequate protection parameters. However, adverse economic
           conditions or changing circumstances are more likely to lead to a
           weakened capacity of the obligor to meet its financial commitment on
           the obligation.

Obligations rated BB, B, CCC, CC, and C are regarded as having significant
speculative characteristics. BB indicates the least degree of speculation and C
the highest. While such obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties or major
exposures to adverse conditions.

BB         Less vulnerable to nonpayment than other speculative issues. However,
           such issues face major ongoing uncertainties or exposure to adverse
           business, financial, or economic conditions which could lead to the
           obligor's inadequate capacity to meet its financial commitment on the
           obligation.

B          More vulnerable to nonpayment than obligations rated BB, but the
           obligor currently has the capacity to meet its financial commitment
           on the obligation. Adverse business, financial, or economic
           conditions will likely impair the obligor's capacity or willingness
           to meet its financial commitment on the obligation.

CCC        Currently vulnerable to nonpayment, and dependent upon favorable
           business, financial, and economic conditions for the obligor to meet
           its financial commitment on the obligation. In the event of adverse
           business, financial, or economic conditions, the obligor is not
           likely to have the capacity to meet its financial commitment on the
           obligation.

CC         Currently highly vulnerable to nonpayment.

C          Used to cover a situation where a bankruptcy petition has been filed
           or similar action has been taken, but payments on this obligation are
           being continued.

D          In payment default. Used when payments on an obligation are not made
           on the date due even if the applicable grace period has not expired,
           unless Standard & Poor's believes that such payments will be made
           during such grace period. Also used upon the filing of a bankruptcy
           petition or the taking of a similar action if payments on an
           obligation are jeopardized.




                                       68
<PAGE>   465

MOODY'S

Investment Grade

Aaa         Best quality. They carry the smallest degree of investment risk and
            are generally referred to as "gilt edged." Interest payments are
            protected by a large, or an exceptionally stable, margin and
            principal is secure.

Aa          High quality by all standards. Margins of protection may not be as
            large as in Aaa securities, fluctuation of protective elements may
            be greater, or there may be other elements present that make the
            long-term risks appear somewhat larger than in Aaa securities.

A           These bonds possess many favorable investment attributes and are to
            be considered as upper-medium grade obligations. Factors giving
            security to principal and interest are considered adequate, but
            elements may be present which suggest a susceptibility to impairment
            sometime in the future.

Baa         These bonds are considered medium-grade obligations (i.e., they are
            neither highly protected nor poorly secured). Interest payments and
            principal security appear adequate for the present but certain
            protective elements may be lacking or may be characteristically
            unreliable over any great length of time. Such bonds lack
            outstanding investment characteristics and in fact have speculative
            characteristics as well.

Non-Investment Grade

Ba          These bonds have speculative elements; their future cannot be
            considered as well assured. The protection of interest and principal
            payments may be very moderate and thereby not well safeguarded
            during good and bad times over the future.

B           These bonds lack the characteristics of a desirable investment
            (i.e., potentially low assurance of timely interest and principal
            payments or maintenance of other contract terms over any long period
            of time may be small).

Caa         Bonds in this category have poor standing and may be in default.
            These bonds carry an element of danger with respect to principal and
            interest payments.

Ca          Speculative to a high degree and could be in default or have other
            marked shortcomings. C is the lowest rating.

FITCH

Investment Grade

AAA         Highest rating category. The obligor's capacity for timely repayment
            of principal and interest is extremely strong.

AA          The obligor's capacity for timely repayment is very strong.

A           Bonds and preferred stock considered to be investment grade and of
            high credit quality. The obligor's ability for timely repayment is
            strong. However, adverse changes in business, economic, or financial
            conditions are more likely to affect the capacity for timely
            repayment than obligations in higher rated categories.

BBB         The obligor's capacity for timely repayment of principal and
            interest is adequate. However, adverse changes in business, economic
            or financial conditions and circumstances, are more likely to affect
            the capacity for timely repayment than for obligations in higher
            rated categories.

BB          Obligations for which capacity for timely repayment of principal and
            interest is uncertain. These obligations are speculative to some
            degree and capacity for timely repayment remains susceptible over
            time to adverse changes in business, financial or economic
            conditions.




                                       69
<PAGE>   466

B           The Obligor's capacity for timely repayment of principal and
            interest is uncertain. Timely repayment of principal and interest is
            not sufficiently protected against adverse changes in business,
            economic or financial conditions and these obligations are far more
            speculative than those in higher rated categories.

CCC         Obligations for which there is a current perceived possibility of
            default. Timely repayment of principal and interest is dependent on
            favorable business, economic, or financial conditions and these
            obligations are far more speculative than those in higher rated
            categories.

CC          Obligations which are highly speculative or which have a high risk
            of default.

C           Obligations which are currently in default.

DESCRIPTION OF INSURANCE RATINGS

MOODY'S

These ratings represent Moody's opinions of the ability of insurance companies
to pay punctually senior policyholder claims and obligations.

Aaa         Insurance companies rated in this category offer exceptional
            financial security. While the financial strength of these companies
            is likely to change, such changes as can be visualized are most
            unlikely to impair their fundamentally strong position.

Aa          These insurance companies offer excellent financial security.
            Together with the Aaa group, they constitute what are generally
            known as high grade companies. They are rated lower than Aaa
            companies because long-term risks appear somewhat larger.

A           Insurance companies rated in this category offer good financial
            security. However, elements may be present which suggest a
            susceptibility to impairment sometime in the future.

Baa         Insurance companies rated in this category offer adequate financial
            security. However, certain protective elements may be lacking or may
            be characteristically unreliable over any great length of time.

   
Ba          Insurance companies rated in this category offer questionable
            financial security. Often the ability of these companies to meet
            policyholder obligations may be very moderate and thereby not well
            safeguarded in the future.
    

B           Insurance companies rated in this company offer poor financial
            security. Assurance of punctual payment of policyholder obligations
            over any long period of time is small.


Caa         Insurance companies rated in this category offer very poor financial
            security. They may be in default on their policyholder obligations
            or there may be present elements of danger with respect to punctual
            payment of policyholder obligations and claims.

Ca          Insurance companies rated in this category offer extremely poor
            financial security. Such companies are often in default on their
            policyholder obligations or have other marked shortcomings.

C           Insurance companies rated in this category are the lowest rated
            class of insurance company and can be regarded as having extremely
            poor prospects of ever offering financial security.



                                       70
<PAGE>   467

S&P

An insurer rated "BBB" or higher is regarded as having financial security
characteristics that outweigh any vulnerabilities, and is highly likely to have
the ability to meet financial commitments.

AAA         Extremely strong financial security characteristics. "AAA" is the
            highest Insurer Financial Strength Rating assigned by Standard &
            Poor's.

AA          Very strong financial security characteristics, differing only
            slightly from those rated higher.

A           Strong financial security characteristics, but is somewhat more
            likely to be affected by adverse business conditions than are
            insurers with higher ratings.

BBB         Good financial security characteristics, but is more likely to be
            affected by adverse business conditions than are higher rated
            insurers.

An insurer rated "BB" or lower is regarded as having vulnerable characteristics
that may outweigh its strength. "BB" indicates the least degree of 
vulnerability within the range; "CC" the highest.

BB          Marginal financial security characteristics. Positive attributes
            exist, but adverse business conditions could lead to insufficient
            ability to meet financial commitments.

B           Weak financial security characteristics. Adverse business conditions
            will likely impair its ability to meet financial commitments.

CCC         Very weak financial security characteristics, and is dependent on
            favorable business conditions to meet financial commitments.

CC          Extremely weak financial security characteristics and is likely not
            to meet some of its financial commitments.

R           An insurer rated "R" has experienced a regulatory action regarding
            solvency. The rating does not apply to insurers subject only to
            nonfinancial actions such as market conduct violations.

NR          Not Rated, which implies no opinion about the insurer's financial
            security.

Plus (+) or minus (-)

Following ratings from "AA" to "CCC" show relative standing within the major
rating categories.

DESCRIPTION OF MUNICIPAL NOTE RATINGS

MOODY'S

MIG1 & VMIG1            Short-term municipal securities rated MIG1 or
                        VMIG1 are of the best quality. They have strong
                        protection from established cash flows, superior
                        liquidity support or demonstrated broad-based access to
                        the market for refinancing.

MIG2 & VMIG2            These short-term municipal securities rated are of high 
                        quality. Margins of protection are ample although not
                        so large as in the preceding group.

MIG3 & VMIG3            Favorable quality. All security elements are accounted
                        for, but the undeniable strength of the preceding grades
                        is lacking. Liquidity and cash flow protection may be
                        narrow and marketing access for refinancing is likely to
                        be less well established.



                                       71
<PAGE>   468

MIG4 & VMIG4            This denotes adequate quality protection commonly
                        regarded as required of an investment security is
                        present and although not distinctly or predominantly
                        speculative, there is a specific risk.

   
SG                      This denotes speculative quality.
    

S&P

An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in three years or less will likely receive a note
rating. Notes maturing beyond three years will most likely receive a long-term
debt rating.

SP-1           Strong capacity to pay principal and interest. Those issues
               determined to possess overwhelming safety characteristics will be
               given a plus (+) designation.

SP-2           Satisfactory capacity to pay principal and interest.

SP-3           Speculative capacity to pay principal and interest.

DESCRIPTION OF PREFERRED STOCK RATINGS

MOODY'S

aaa            Top-quality preferred stock. This rating indicates good asset
               protection and the least risk of dividend impairment within the
               universe of preferred stocks.

aa             High-grade preferred stock. This rating indicates that there is a
               reasonable assurance the earnings and asset protection will
               remain relatively well maintained in the foreseeable future.

a              Upper-medium grade preferred stock. While risks are judged to be
               somewhat greater than in the "aaa" and "aa" classification,
               earnings and asset protection are, nevertheless, expected to be
               maintained at adequate levels.

baa            Medium-grade preferred stock, neither highly protected nor poorly
               secured. Earnings and asset protection appear adequate at present
               but may be questionable over any great length of time.

ba             Considered to have speculative elements and its future cannot be
               considered well assured. Earnings and asset protection may be
               very moderate and not well safeguarded during adverse periods.
               Uncertainty of position characterizes preferred stocks in this
               class.

b              Lacks the characteristics of a desirable investment. Assurance of
               dividend payments and maintenance of other terms of the issue
               over any long period of time may be small.

caa            Likely to be in arrears on dividend payments. This rating
               designation does not purport to indicate the future status of
               payments.

ca             Speculative in a high degree and is likely to be in arrears on
               dividends with little likelihood of eventual payments.

c              Lowest rated class of preferred or preference stock. Issues so
               rated can thus be regarded as having extremely poor prospects of
               ever attaining any real investment standing.

Note: Moody's applies numerical modifiers 1, 2, and 3 in each rating
classification; the modifier 1 indicates that the security ranks in the higher
end of its generic rating category; the modifier 2 indicates a mid-range ranking
and the modifier 3 indicates that the issue ranks in the lower end of its
generic rating category.




                                       72
<PAGE>   469

S&P

S&P's preferred stock rating is an assessment of the capacity and willingness of
an issuer to pay preferred stock dividends and any applicable sinking fund
obligations.

AAA            Highest rating. This rating indicates an extremely strong
               capacity to pay the preferred stock obligations.

AA             High-quality, fixed-income security. The capacity to pay
               preferred stock obligations is very strong, although not as
               overwhelming as for issues rated "AAA."

A              Backed by a sound capacity to pay the preferred stock
               obligations, although it is somewhat more susceptible to the
               adverse effects of changes in circumstances and economic
               conditions.

BBB            Backed by an adequate capacity to pay the preferred stock
               obligations. Whereas the issuer normally exhibits adequate
               protection parameters, adverse economic conditions or changing
               circumstances are more likely to lead to a weakened capacity to
               make payments for a preferred stock in this category than for
               issues in the "A" category.

CCC            Regarded, on balance, as predominantly speculative with respect
               to the issuer's capacity to pay preferred stock obligations. BB
               indicates the lowest degree of speculation and CCC the highest.
               While such issues will likely have some quality and protective
               characteristics, these are outweighed by large uncertainties or
               major risk exposures to adverse conditions.

CC             In arrears on dividends or sinking fund payments, but that is
               currently paying.

C              Nonpaying issue.

D              Nonpaying issue with the issuer in default on debt instruments.

N.R.           No rating has been requested, insufficient information on which
               to base a rating, or Standard & Poor's does not rate a particular
               type of obligation as a matter of policy.

Plus (+) or minus (-)

To provide more detailed indications of preferred stock quality, ratings from AA
to CCC may be modified by the addition of a plus or minus sign to show relative
standing within the major rating categories.

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") ratings apply only to the unsecured commercial
paper and other senior short-term and deposit obligations of entities to which
the ratings have been assigned. The TBW Short-Term ratings specifically assess
the likelihood of an untimely payment of principal and interest.

TBW-1          Very high degree of likelihood that principal and interest will
               be paid on a timely basis.

TBW-2          While degree of safety regarding timely repayment of principal
               and interest is strong, the relative degree is not as high as for
               issues rated TBW-1.

TBW-3          Lowest investment grade category. While more susceptible to
               adverse developments than obligations with higher ratings,
               capacity to service principal and interest in a timely fashion is
               considered adequate.

TBW-4          Non-investment grade and, therefore, speculative.




                                       73
<PAGE>   470

DESCRIPTION OF MUNICIPAL BOND RATINGS (INCLUDING FOREIGN, MORTGAGE AND
ASSET-BACKED SECURITIES)

S&P

Investment Grade

AAA            The highest rating. The rating indicates an extremely strong
               capacity to meet its financial commitment.

AA             Differs from AAA issues only in a small degree. The obligor's
               capacity to meet its financial commitment is very strong.

A              These bonds are somewhat more susceptible to the adverse effects
               of changes in circumstances and economic conditions than debt in
               higher rated categories. However, capacity to meet its financial
               commitment on the obligation is still strong.

BBB            Exhibits adequate protection parameters.
               However, adverse economic conditions or changing circumstances
               are more likely to lead to a weakened capacity to meet its
               financial commitment on the obligations.

   
Non-Investment Grade
    
BB             Less vulnerable to non-payment than other speculative issues.
               However, these bonds face major ongoing uncertainties or exposure
               to adverse business, financial or economic conditions which could
               lead to inadequate capacity to meet financial commitment on the
               obligations.

B              More vulnerable to non-payment than obligations rated BB, but
               currently has the capacity to meet its financial commitment on
               the obligation. Adverse business, financial or economic
               conditions will likely impair capacity or willingness to meet its
               financial commitment on the obligation.

CCC            Currently vulnerable to non-payment, and is dependent upon
               favorable business, financial, and economic conditions to meet
               its financial commitment on the obligation. In the event of
               adverse business, financial, or economic conditions, they are not
               likely to have the capacity to meet its financial commitment on
               the obligation.

CC             Currently highly vulnerable to non-payment.

C              This rating may be used to cover a situation where a bankruptcy
               petition has been filed, or similar action has been taken, but
               payments on this obligation are being continued.

D              Bonds in payment default.

               Ratings from AA to CCC may be modified by a plus (+) or minus (-)
               to show relative standing within the major rating categories.

MOODY'S

Investment Grade

Aaa            Best quality. They carry the smallest degree of investment risk
               and are generally referred to as "gilt edged." Interest payments
               are protected by a large, or an exceptionally stable, margin and
               principal is secure.

Aa             High quality by all standards. Margins of protection may not be
               as large as in Aaa securities, fluctuation of protective elements
               may be greater, or there may be other elements present that make
               the long-term risks appear somewhat larger than in Aaa
               securities.




                                       74
<PAGE>   471

A              These bonds possess many favorable investment attributes and are
               to be considered as upper-medium grade obligations. Factors
               giving security to principal and interest are considered
               adequate, but elements may be present which suggest a
               susceptibility to impairment sometime in the future.

Baa            These bonds are considered medium-grade obligations (i.e., they
               are neither highly protected nor poorly secured). Interest
               payments and principal security appear adequate for the present
               but certain protective elements may be lacking or may be
               characteristically unreliable over any great length of time. Such
               bonds lack outstanding investment characteristics and in fact
               have speculative characteristics as well.

Non-Investment Grade

Ba             These bonds have speculative elements; their future cannot be
               considered as well assured. The protection of interest and
               principal payments may be very moderate and thereby not well
               safeguarded during good and bad times over the future.

B              These bonds lack the characteristics of a desirable investment
               (i.e., potentially low assurance of timely interest and principal
               payments or maintenance of other contract terms over any long
               period of time may be small).

Caa            Bonds in this category have poor standing and may be in default.
               These bonds carry an element of danger with respect to principal
               and interest payments.

Ca             Speculative to a high degree and could be in default or have
               other marked shortcomings. Ca is the lowest rating.

SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") assigns ratings to specific debt instruments
with original maturities of one year or less. The TBW Short-Term ratings
specifically assess the likelihood of an untimely payment of principal and
interest.

TBW-1          Very high degree of likelihood that principal and interest will
               be paid on a timely basis.


TBW-2          While degree of safety regarding timely repayment of principal
               and interest is strong, the relative degree is not as high as for
               issues rated TBW-1.

TBW-3          Lowest investment grade category. While more susceptible to
               adverse developments than obligations with higher ratings,
               capacity to service principal and interest in a timely fashion is
               considered adequate.

TBW-4          Non-investment grade and, therefore, speculative.




                                       75
<PAGE>   472


INVESTMENT ADVISOR AND SUB-ADMINISTRATOR
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

DISTRIBUTOR
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

ADMINISTRATOR
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

TRANSFER AGENT AND CUSTODIAN
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

LEGAL COUNSEL
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

   
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
    

The Statement of Additional Information contains more detailed information about
the Funds. The current Statement of Additional Information has been filed with
the Securities and Exchange Commission and is available without charge by
calling 1-800-480-4111 or by writing to One Group Funds Services Company at 3435
Stelzer Road, Columbus, Ohio 43219. The Statement of Additional Information is
incorporated into this prospectus by reference. The SEC maintains a Web site
(www.sec.gov) that contains the Statement of Additional Information, materials
incorporated by reference and other information regarding One Group Funds(R).










                                       76
<PAGE>   473


   
    

                       ONE GROUP(R) FAMILY OF MUTUAL FUNDS

   
                         ONE GROUP(R) EQUITY INDEX FUND

                                 MARCH ___, 1998



     The information in this prospectus is important. Please read it carefully
before you invest, and save it for future reference.

 Please remember that shares of the Funds: - Are not deposits or obligations of,
  or guaranteed by BANK ONE CORPORATION or its affiliates; - Are not insured or
  guaranteed by the Federal Deposit Insurance Corporation or by any federal or
  state governmental agency; - Involve investment risk, including the possible
                     loss of the principal amount invested.

  These securities have not been approved or disapproved by the Securities and
     Exchange Commission nor has the Commission passed upon the accuracy or
      adequacy of this prospectus. Any representation to the contrary is a
                                criminal offense.
    











2
<PAGE>   474
   
<TABLE>

                                                                     
                               TABLE OF CONTENTS
                                                                   EQUITY INDEX
                                                                   ------------
<S>                                                                     <C>
A BRIEF PREVIEW OF THE FUND........................................      1       
                                                                                
ABOUT THE FUND.....................................................      2       
                                                                                
MORE ABOUT THE FUND................................................      9       
                                                                                
HOW TO DO BUSINESS WITH ONE GROUP..................................     10       
  Purchasing Fund Shares...........................................     10      
  Sales Charges....................................................     13       
  Sales Charge Reductions and Waivers..............................     16       
  Exchanging Fund Shares...........................................     19        
  Redeeming Fund Shares............................................     20       
                                                                                
SHAREHOLDER INFORMATION............................................     24        
  Voting Rights....................................................     24        
  Dividend Policies................................................     24        
  Tax Treatment of the Fund........................................     25        
  Tax Treatment of Shareholders....................................     26        
  Shareholder Inquiries............................................             
                                                                                
ORGANIZATION AND MANAGEMENT OF ONE GROUP...........................     27        
  One Group........................................................     27        
  The Board of Trustees............................................     27        
  The Advisor......................................................     27        
  The Distributor..................................................     27        
  The Administrator and Sub-Administrator..........................     27        
  The Transfer Agent, Custodian and Sub-Custodian..................     27        
  Year 2000........................................................     27      
                                                                                
DETAILS ABOUT ONE GROUP EQUITY INDEX FUND'S INVESTMENT PRACTICES                
  AND POLICIES.....................................................     29        
  Investment Practices.............................................     29        
  Investment Risks.................................................     31        
  Investment Policies..............................................     32        
                                                                                
APPENDIX: DESCRIPTION OF RATINGS...................................     34        
</TABLE>                                                                        
                                                                                
                                                                                
                                                                                


                                       3

<PAGE>   475



A BRIEF PREVIEW OF THE FUND

WHAT IS THE GOAL OF ONE GROUP EQUITY INDEX FUND?

The Fund is designed to seek investment results that correspond to the aggregate
price and dividend performance of securities in the Standard & Poor's 500
Composite Stock Price Index ("S&P 500"). *

WHAT IS THE FUND'S INVESTMENT STRATEGY?

The Fund normally will invest in a variety of equity securities, primarily
common stocks, that are included in the S&P 500 Index and, secondarily, in stock
index futures. The Fund also may lend its securities.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

Equity securities such as those in which the Fund may invest are more volatile
and carry more risk than some other forms of investment. Accordingly, as with
all equity investments, you may lose money by investing in the Fund. The Fund
may invest in derivative securities. These securities may expose the Fund to
special risks. An investment in the Funds is not a deposit of BANK ONE
CORPORATION or its affiliates and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. For more
information about risks, please read "More About the Fund" and "Investment
Risks."

WHAT CLASSES OF SHARES ARE AVAILABLE?

The Fund currently offers four classes of Shares: Class A, Class B, Class C and
Class I. Class A, Class B and Class C shares are offered to the general public.
Class I shares are offered to institutional investors, including affiliates of
BANK ONE CORPORATION and any bank, depository institution, insurance company,
pension plan or other organization authorized to act in fiduciary, advisory,
agency, custodial or similar capacities. The section called "How To Do Business
With The One Group Mutual Funds" will provide more information. Class I shares
are not available to Individual Retirement Accounts ("IRA").

HOW DO I PURCHASE AND REDEEM SHARES?

You may buy and redeem shares of the Fund on any day that the Fund is open for
business. Purchase and redemption procedures are explained in greater detail in
"How To Do Business With The One Group Mutual Funds." For additional
information, call The One Group Services Company at 1-800-480-4111.

HOW ARE DIVIDENDS PAID?

Generally, dividends are declared on the last business day of each month and are
distributed monthly on the first business day of each month. Any capital gains
are distributed at least annually. Distributions are paid in additional shares
of the same class unless you elect to take the payment in cash. For a more
detailed discussion of dividends, see "Dividend Policies."

WHO MANAGES THE FUND?

Banc One Investment Advisors Corporation ("Banc One Investment Advisors"), an
indirect subsidiary of BANK ONE CORPORATION, serves as the advisor of the Fund.
Banc One Investment Advisors is paid a fee for its services. A more detailed
discussion regarding Banc One Investment Advisors, its services and compensation
can be found in the Prospectus under the headings "The Advisor" and "Expense
Summary."




   
*   "S&P 500" is a registered service mark of Standard & Poor's Corporation,
    which does not sponsor and is in no way affiliated with the Fund.
    




1
<PAGE>   476


 ONE GROUP(R) EQUITY INDEX FUND

INVESTMENT OBJECTIVE

   
The Fund seeks investment results that correspond to the aggregate price and
dividend performance of securities in the S&P 500.
    

INVESTMENT STRATEGY

The Fund invests primarily in stocks included in the S&P 500 and, secondarily in
stock index futures. Banc One Investment Advisors will seek to achieve a
correlation between the performance of the Fund and that of the S&P 500. To
implement this strategy, Banc One Investment Advisors generally selects stocks
in the order of their weightings in the S&P 500 beginning with the heaviest
weighted stocks. The Fund will attempt to achieve a correlation between the
performance of its portfolio and that of the S&P 500 of at least 0.95, without
taking into account expenses. Perfect correlation would be 1.00.

PORTFOLIO SECURITIES

The percentage of a stock that the Fund holds will be approximately the same
percentage that the stock represents in the S&P 500. In addition, the Fund may
hold up to 10% of its net assets in cash or cash equivalents. For a list of all
the securities in which the Fund may invest, please read "Investment Practices."

RISK CONSIDERATIONS

The Fund invests in equity securities, which may increase or decrease in value.
Therefore, the value of your investment in the Fund may increase or decrease in
value. Because the Fund's investments are tied to an index, fluctuations in the
index will affect the value of your investment in the Fund. Before you invest,
please read "More About the Funds" and "Investment Risks."

FUND MANAGEMENT

The Fund is managed by a team of portfolio managers, research analysts, and
other investment management professionals. Each team member makes
recommendations about the securities in the Fund. The research analysts provide
in-depth industry analysis and recommendations, while the portfolio managers
determine strategy, industry weightings, Fund holdings, and cash positions.












2

<PAGE>   477
   
<TABLE>
<CAPTION>

SHAREHOLDER EXPENSES

SHAREHOLDER TRANSACTION EXPENSES(1)              CLASS A        CLASS B         CLASS C         CLASS I
<S>                                            <C>                <C>             <C>             <C>

Maximum Sales Charge Imposed on Purchases
  (as a percentage of offering price)          5.25%               none            none            none
Maximum Contingent Deferred Sales Charge
  (as a percentage of original purchase
  price or redemption proceeds, as
  applicable)                                    none(2)          5.00%           1.00%            none
Redemption Fees                                  none              none            none            none
Exchange Fees                                    none              none            none            none

ANNUAL OPERATING EXPENSES(3)
  (as a percentage of average daily
   net assets)
Investment Advisory Fees (after fee
  waiver)(4)                                    .15%              .15%            .15%            .15%
12b-1 Fees (after fee waiver)(5)                .25%             1.00%           1.00%            none
Other Expenses (after reimbursements)(6)        .21%              .21%            .21%            .21%
Total Fund Operating Expenses (after
  fee waivers)(7)                               .61%             1.36%           1.36%            .36%
<FN>

(1)   If you buy or sell shares through an account with a Shareholder Servicing
      Agent, you may be charged separate transaction fees by the Shareholder
      Servicing Agent. In addition, a $10.00 sub-minimum account fee may be
      applicable and a $7.00 charge will be deducted from the redemption amounts
      paid by wire.
(2)   Except for purchases of $1 million or more. Please see "Sales Charges."
(3)   Expense information has been restated to reflect current fees.
(4)   Without the fee waiver, Investment Advisory Fees would be .30% for all
      classes of shares.
(5)   Due to 12b-1 fees, long-term Class A, Class B and Class C shareholders may
      pay more than the equivalent of the maximum front-end sales charges
      permitted by the rules of the National Association of Securities Dealers.
      Without the voluntary waiver, 12b-1 fees would be .35% for Class A shares.
(6)   Without expense reimbursements, Other Expenses would be .28% for all
      classes of shares.
(7)   Without the voluntary reduction of Investment Advisory and 12b-1 fees and
      reimbursements of Other Expenses, Total Operating Expenses would be .93%
      for Class A shares, 1.58% for Class B shares, 1.58% for Class C shares and
      .58% for Class I shares.
</TABLE>
    


EXAMPLE

An investor would pay the following expenses on a $1,000 investment in the Fund,
assuming: (1) payment of the maximum sales charge; (2) 5% annual return; and (3)
redemption at the end of each time period.
   
<TABLE>
<CAPTION>

                                                              1 Year             3 Years         5 Years        10 Years
                                                              ------             -------         -------        --------

<S>                                                             <C>                <C>            <C>              <C> 
Class A                                                         $58                $71            $ 85             $125
Class A (without fee waivers)                                   $61                $81            $101             $161
Class B                                                         $64                $73            $ 94             $143
Class B (without fee waivers)                                   $66                $80            $106             $170
Class C                                                         $24                $43            $ 74             $164
Class C (without fee waivers)                                   $26                $50            $ 86             $188
Class I                                                         $ 4                $12            $ 20             $ 46
Class I (without fee waiver)                                    $ 6                $19            $ 32             $ 73
</TABLE>
    





3
<PAGE>   478



Assuming no redemption at the end of each time period, the dollar amounts in the
above example would be as follows:
   
<TABLE>
<CAPTION>

                                     1 Year    3 Years     5 Years    10 Years
                                     ------    -------     -------    --------


<S>                                     <C>        <C>        <C>         <C> 
Class A                                 $58        $71        $ 85        $125
Class A (without fee waivers)           $61        $81        $101        $161
Class B                                 $14        $43        $ 74        $143
Class B (without fee waivers)           $16        $50        $ 86        $170
Class C                                 $14        $43        $ 74        $164
Class C (without fee waivers)           $16        $50        $ 86        $188
Class I                                 $ 4        $12        $ 20        $ 46
Class I (without fee waivers)           $ 6        $19        $ 32        $ 73
</TABLE>
    

Class B shares automatically convert to Class A shares after eight (8) years.
Therefore, the "10 years" examples above reflect this conversion.

These examples are designed to assist you in understanding the various costs and
expenses that may be directly or indirectly paid by investors in the Fund. THESE
EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES
AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.








4
<PAGE>   479


ONE GROUP(R) EQUITY INDEX FUND FINANCIAL HIGHLIGHTS

The Financial Highlights are intended to help you understand the Fund's
financial performance over the past 10 years, or since inception if less than 10
years. The total returns in the table represent the rate a shareholder would
have earned on an investment in the Fund (assuming reinvestment of all dividends
and distributions). This information has been derived from financial statements
audited by PricewaterhouseCoopers LLP whose report, along with the Fund's
financial statements, is incorporated by reference in the Statement of
Additional Information, which is available upon request.
   
<TABLE>
<CAPTION>

                                                                         YEAR ENDED JUNE 30,
CLASS I                                          1998        1997       1996       1995       1994      1993      1992(b)
- -------                                          ----        ----       ----       ----       ----      ----      -------


<S>                                            <C>        <C>        <C>         <C>        <C>        <C>        <C>    
NET ASSET VALUE, BEGINNING OF PERIOD           $  21.80   $  16.66   $  14.03    $  11.59   $  11.92   $ 10.92    $ 10.00
Investment Activities:
  Net investment income                            0.33       0.35       0.33        0.32       0.29      0.30       0.26
  Net realized and unrealized gains
    (losses) from investments                      5.98       5.27       3.16        2.59      (0.20)     1.13       0.95
Total from Investment Activities                   6.31       5.62       3.49        2.91       0.09      1.43       1.21
Distributions:
  From net investment income                      (0.32)     (0.33)     (0.33)      (0.29)     (0.29)    (0.30)     (0.26)
  In excess of net investment income                --         --       (0.01)      (0.02)     (0.04)      --         --
  From net realized gains                         (0.63)     (0.15)     (0.52)      (0.16)     (0.09)    (0.13)     (0.03)
Total Distributions                               (0.95)     (0.48)     (0.86)      (0.47)     (0.42)    (0.43)     (0.29)
NET ASSET VALUE, END OF PERIOD                 $  27.16   $  21.80   $  16.66    $  14.03   $  11.59   $ 11.92    $ 10.92
Total Return                                      29.73%     34.30%     25.47%      25.79%      0.63%    13.04%     12.14%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)            $671,422   $480,819   $321,058    $234,895   $165,370   $96,446    $62,150
  Ratio of expenses to average net
    assets                                         0.35%      0.30%      0.30%       0.33%      0.46%     0.50%      0.73%(c)
  Ratio of net investment income to
    average net assets                             1.37%      1.87%      2.18%       2.57%      2.44%     2.46%      2.43%(c)
  Ratio of expenses to average net
    assets*                                        0.62%      0.61%      0.59%       0.66%      0.59%     0.87%      1.16%(c)
  Ratio of net investment income to
    average net assets*                            1.10%      1.56%      1.89%       2.24%      2.31%     2.09%      2.00%(c)
  Portfolio turnover(a)                            4.32%      5.81%      9.08%       2.71%     11.81%     2.71%     21.90%
<FN>


*        During the period, certain fees were voluntarily reduced. If such
         voluntary fee reductions had not occurred, the ratios would have been
         as indicated. (a)Portfolio turnover is calculated on the basis of the
         Fund as a whole without distinguishing among the classes of shares
         issued. (b)The Fund commenced operations on July 2, 1991.
         (c)Annualized.
</TABLE>
    







5
<PAGE>   480

<TABLE>
<CAPTION>

                                                                         YEAR ENDED JUNE 30,
CLASS A                                          1998       1997       1996       1995       1994       1993      1992(b)
- -------                                          ----       ----       ----       ----       ----       ----      -------


<S>                                            <C>         <C>        <C>          <C>        <C>       <C>        <C>   
NET ASSET VALUE, BEGINNING OF PERIOD           $  21.81    $ 16.67    $ 14.02      $11.59     $11.91    $10.92     $10.94
Investment Activities:
  Net investment income                            0.26       0.29       0.27        0.29       0.28      0.30       0.08
  Net realized and unrealized gains
    (losses) from investments                      5.97       5.28       3.18        2.58      (0.20)     1.10        --
Total from Investment Activities                   6.23       5.57       3.45        2.87       0.08      1.40       0.08
Distributions:
  From net investment income                      (0.26)     (0.28)     (0.27)      (0.28)     (0.27)    (0.28)     (0.10)
  In excess of net investment income                --         --       (0.01)        --       (0.04)      --         --
  From net realized gains                         (0.63)     (0.15)     (0.52)      (0.16)     (0.09)    (0.13)       --
Total Distributions                               (0.89)     (0.43)     (0.80)      (0.44)     (0.40)    (0.41)     (0.10)
NET ASSET VALUE, END OF PERIOD                 $  27.15    $ 21.81    $ 16.67      $14.02     $11.59    $11.91     $10.92
Total Return (Excludes Sales Charge)              29.33%     33.94%     25.16%      25.43%      0.56%    12.75%      1.32%(c)
RATIOS/SUPPLEMENTARY DATA:
  Net Assets at end of period (000)            $218,518    $98,338    $32,186      $3,003     $1,416    $  512     $    5
  Ratio of expenses to average net
    assets                                         0.60%      0.55%      0.55%       0.56%      0.62%     0.52%      1.09%(c)
  Ratio of net investment income to
    average net assets                             1.11%      1.59%      1.93%       2.38%      2.37%     2.51%      1.97%(c)
  Ratio of expenses to average net
    assets*                                        0.96%      0.95%      0.94%       1.01%      0.94%     0.99%      1.27%(c)
  Ratio of net investment income to
    average net assets*                            0.75%      1.19%      1.54%       1.94%      2.05%     2.04%      1.79%(c)
  Portfolio turnover(a)                            4.32%      5.81%      9.08%       2.71%     11.81%     2.71%     21.90%

<FN>

*        During the period,  certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred,  the
         ratios  would have been as  indicated.  (a)Portfolio  turnover is  calculated  on the basis of the Fund as a whole
         without  distinguishing  among the classes of shares issued.  (b)Class A Shares commenced offering on February 18,
         1992.  (c)Annualized.
</TABLE>




6
<PAGE>   481
   
<TABLE>
<CAPTION>

ONE GROUP(R) EQUITY INDEX FUND FINANCIAL HIGHLIGHTS

                                                                         YEAR ENDED JUNE 30,
CLASS B                                              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:
  From net investment income                          (0.11)         (0.16)          (0.16)        (0.19)           (0.09)
  In excess of net investment
    income                                              --             --            (0.01)          --               --
  From 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%
<FN>

*        During the period,  certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred,  the
         ratios  would  have  been  as  indicated.  (a)Class B  Shares  commenced  offering  on  January 14,  1994.  (b)Not
         annualized.  (c)Annualized.  (d)Portfolio  turnover  is  calculated  on the  basis of the Fund as a whole  without
         distinguishing among the classes of shares issued.
</TABLE>
    







7
<PAGE>   482

<TABLE>
<CAPTION>


                                                                                                         NOVEMBER 4,
                                                                                                            1997
                                                                                                         TO JUNE 30,
CLASS C                                                                                                    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%
<FN>

*        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.
</TABLE>





8
<PAGE>   483


MORE ABOUT THE FUND

ILLIQUID INVESTMENTS

   
The Fund may invest up to 15% of its net assets in illiquid investments. A
security is illiquid if it cannot be sold at approximately the value assessed by
the Fund within seven (7) days. Banc One Investment Advisors will follow
guidelines adopted by the One Group Board of Trustees in determining whether an
investment is illiquid.
    

SPECIAL RISK CONSIDERATIONS

DERIVATIVES: The Fund invests in securities that are considered to be
"derivatives." "Derivatives" are securities or contracts that derive their value
from the performance of underlying assets or securities. These include:

- -        options, futures contracts, and options on futures contracts

- -        warrants

- -        swap, cap and floor transactions

- -        new financial products

These securities may be more volatile than other investments. Derivatives
present, to varying degrees, market, credit, leverage, liquidity, and management
risks. The Fund's use of derivatives may cause the Fund to recognize higher
amounts of short-term capital gains (generally taxed at ordinary income tax
rates) than it would if the Fund did not use such instruments. For a more
detailed discussion of these risks, please read "Investment Risks."

INDEX FUNDS: An index fund's investment objective is to track the performance of
a specified index. Therefore, securities may be purchased, retained and sold by
an index fund at times when an actively managed fund would not do so. As a
result, you can expect greater risk of loss (and a correspondingly greater
prospect of gain) from changes in the value of securities that are heavily
weighted in the index than would be the case if the funds were not fully
invested in such securities. Because of this, an index fund's share price can be
volatile and you should be able to handle sudden, and sometimes substantial,
fluctuations in the value of your investment.







9
<PAGE>   484


HOW TO DO BUSINESS WITH THE ONE GROUP MUTUAL FUNDS

PURCHASING FUND SHARES

WHERE CAN I BUY SHARES?

You may purchase Fund shares from the following sources:

- -        The One Group Services Company, and

- -        Shareholder Servicing Agents. These include investment advisors,
         brokers, financial planners, banks, insurance companies, retirement or
         401(k) plan sponsors, or other intermediaries. Shares purchased this
         way will be held for you by the Shareholder Servicing Agent.

WHEN CAN I BUY SHARES?

- -        Purchases may be made on any business day. This includes any day that
         the Funds are open for business, other than weekends, days on which the
         New York Stock Exchange ("NYSE") is closed, and the following holidays:
         New Years Day, Martin Luther King, Jr. Day, Presidents' Day, Good
         Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving, and
         Christmas.

- -        Purchase requests received by The One Group Services Company before 4
         p.m. Eastern Time ("ET") will be effective that day. On occasion, the
         NYSE will close before 4 p.m. ET. When that happens, purchase requests
         received after the NYSE closes will be effective the following business
         day.

- -        Purchase orders may be cancelled by the Fund's Custodian, State Street
         Bank and Trust Company, if it does not receive "federal funds" by 4:00
         p.m. ET (i) on the business day after the order is placed if you are
         buying Class I shares, and (ii) on the third business day if you are
         purchasing Class A, Class B or Class C shares.

- -        If your shares are held by a Shareholder Servicing Agent, it is the
         responsibility of the Shareholder Servicing Agent to send your purchase
         or redemption order to the Fund. Your Shareholder Servicing Agent may
         have an earlier cut-off time for purchase and redemption requests.

- -        The One Group Services Company can reject a purchase order if it does
         not think that it is in the best interest of the Fund and/or its
         shareholders to accept the order.

- -        Shares are electronically recorded. Therefore, certificates will not be
         issued.

WHAT KIND OF SHARES CAN I BUY?

One Group offers the following classes of shares:

- -        Class A, Class B and Class C shares are available to the general
         public.

- -        Class I shares are available to institutional investors and any
         organization authorized to act in a fiduciary, advisory, custodial or
         agency capacity. We will refer to these entities as "Intermediaries."

- -        If you intend to hold your shares for six or more years, Class B shares
         may be appropriate for you. If you intend to hold your shares for less
         than six years, you may want to consider Class A or Class C shares.

         One Group Fund Direct IRA. One Group offers a retirement plan. This
         plan allows participants to defer taxes while their retirement and
         education savings grow. The education IRA requires a minimum investment
         of $500. Call The One Group Services Company at 1-800-480-4111 for an
         Adoption Agreement.

HOW MUCH DO SHARES COST?

- -        Shares are sold at net asset value ("NAV") plus a sales charge, if any.




10

<PAGE>   485

- -        Each class of shares in the Fund has a different NAV. This is primarily
         because each class has different distribution expenses.

- -        NAV per share is calculated by dividing the total market value of the
         Fund's investments and other assets allocable to a class (minus class
         expenses) by the number of outstanding shares in that class.

- -        The Fund's NAV changes every day. NAV is calculated each business day
         following the close of the NYSE at 4:00 p.m. ET. On occasion, the NYSE
         will close before 4 p.m. ET. When that happens, NAV will be calculated
         as of the time the NYSE closes.

HOW DO I OPEN AN ACCOUNT?

1.       Read the prospectus carefully, and select the share class most
         appropriate for you.

2.       Decide how much you want to invest.

- -        The minimum initial investment is $1,000 ($100 for employees of BANK
         ONE CORPORATION and its affiliates). The minimum initial investment for
         an IRA is $250.

- -        Subsequent investments must be at least $100 ($25 for employees of BANK
         ONE CORPORATION and its affiliates).

- -        You may purchase no more than $250,000 of Class B shares at one time.

- -        The One Group Services Company may waive these minimums.

3.       Complete the Account Application Form. Be sure to sign up for all of
         the Account privileges that you plan to take advantage of. Doing so now
         means that you will not have to complete additional paperwork later.

4.       Send the completed application and a personal check (unless you choose
         to pay by wire or bank transfer) payable to "One Group" to:

         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528

         Contributions to Fund Direct IRAs should be made payable to "State
         Street Bank and Trust Company for the Benefit of (your name)."

5.       All checks should be in U.S. dollars. Third party checks will not be
         accepted. Redemptions from the Fund will not be permitted for ten (10)
         calendar days if purchases are made by check or under the Systematic
         Investment Plan (see below).

6.       If you purchase shares through a Shareholder Servicing Agent, you may
         be required to complete additional forms or follow additional
         procedures. You should contact your Shareholder Servicing Agent
         regarding purchases, exchanges and redemptions.


7.       If you have any questions, contact your Shareholder Servicing Agent or
         call The One Group Services Company at 1-800-480-4111.



CAN I PURCHASE SHARES OVER THE TELEPHONE?

Yes. Simply select this option on your Account Application Form and then:
   




11
    

<PAGE>   486

- -        Contact your Shareholder Servicing Agent or The One Group Services
         Company at 1-800-480-4111 to relay your purchase instructions.

         Send a personal check made payable to "One Group" to State Street Bank
         and Trust Company (see address above), authorize a bank transfer, or
         initiate a wire transfer to the following wire address:

         State Street Bank & Trust Company
         Attn: Custody & Shareholder Services
         ABA 011 000 028
         DDA 99034167
         FBO One Group Fund (ex: One Group Equity Index Fund--A)
         Your Account Number (ex: 123456789)
         Your Account Registration (ex: John Smith & Mary Smith, JTWROS)

- -        One Group uses reasonable procedures to confirm that instructions given
         by telephone are genuine. These procedures include recording telephone
         instructions and asking for personal identification. If these
         procedures are followed, The One Group will not be responsible for any
         loss, liability, cost or expense of acting upon unauthorized or
         fraudulent instructions; you bear the risk of loss.

- -        You may revoke your right to make purchases over the telephone by
         sending a letter to:

   
         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528
    

Can I Automatically Invest On A Systematic Basis?

Yes. After your Account is established, you may purchase additional Class A,
Class B and Class C shares by making automatic monthly investments from your
bank account. The minimum initial investment is still $1,000, but minimum
automatic additions are only $25. The One Group Services Company may waive these
minimums. To establish a Systematic Investment Plan:

- -        Select the "Systematic Investment Plan" option on the Account
         Application Form.

- -        Provide the necessary information about the bank account from which
         your investments will be made.

- -        Shares purchased under a Systematic Investment Plan may not be redeemed
         for ten (10) calendar days.

- -        One Group currently does not charge for this service, but may impose a
         charge in the future. However, your bank may impose a charge for
         debiting your bank account.





12
<PAGE>   487



- -        You may revoke your right to make systematic investments by calling The
         One Group Services Company at 1-800-480-1111 or by sending a letter to:

         State Street Bank and Trust Company
         c/o One Group
         P.O. Box 8528
         Boston, MA 02266-8528

CONVERSION FEATURE

Your Class B shares automatically convert to Class A shares after eight years
(measured from the end of the month in which they were purchased).

- -        After conversion, your shares will be subject to the lower distribution
         and shareholder servicing fees charged on Class A shares.

- -        You will not be assessed any sales charges or fees for conversion of
         shares, nor will you be subject to any Federal income tax.

- -        Because the share price of the Class A shares may be higher than that
         of the Class B shares at the time of conversion, you may receive fewer
         Class A shares; however, the dollar value will be the same.

- -        If you have exchanged Class B shares of one Fund for Class B shares of
         another, the time you held the shares in each Fund will be added
         together.

SALES CHARGES

   
The One Group Services Company compensates Shareholder Servicing Agents who sell
shares of One Group. Compensation comes from sales charges, 12b-1 fees and
payments by The One Group Services Company from its own resources. Occasionally,
The One Group Services Company, at its own expense, also will provide cash
incentives to select Shareholder Servicing Agents. Those Shareholder Servicing
Agents who may receive special incentives include Banc One Securities
Corporation, The Advisors Group, United Planners Financial Services of America,
Inc., The Legend Group, and Rosewood Retirement Advisory Services, LLC. The One
Group Services Company pays additional compensation to Shareholder Servicing
Agents for sales of over $1 million dollars of Class A shares. Shareholder
Servicing Agents receive 1.00% of the purchase price of Class A shares for sales
of $1 million to $5 million, and 0.50% on amounts over $5 million.
    


   
<TABLE>
<CAPTION>

CLASS A SHARES

This table shows the amount of sales charge you pay and the commissions paid to
Shareholder Servicing Agents.

                                               SALES CHARGE               SALES CHARGE                COMMISSION
                                               AS A % OF THE                AS A % OF                AS A % OF THE
AMOUNT OF PURCHASE                            OFFERING PRICE             YOUR INVESTMENT            OFFERING PRICE
- ------------------                            --------------             ---------------            --------------


<S>                                                  <C>                       <C>                          <C>  
Less than  $50,000                                    5.25%                     5.54%                       4.75%
$50,000-$99,999                                       4.50%                     4.71%                       4.05%
$100,000-$249,999                                     3.50%                     3.63%                       3.05%
$250,000-$499,999                                     2.50%                     2.56%                       2.05%
$500,000-$999,999                                     2.00%                     2.04%                       1.60%
$1,000,000*                                           0.00%                     0.00%                       0.00%
</TABLE>
    




13

<PAGE>   488
   

*        If you purchase $1 million or more of Class A shares and are not
         assessed a sales charge at the time of purchase, you will be charged
         the equivalent of 1% of the purchase price if you redeem any or all of
         the Class A shares within one year of purchase and 0.50% of the
         purchase price if you redeem within two years of purchase, unless The
         One Group Services Company receives notice before you invest indicating
         that your Shareholder Servicing Agent is waiving its commission.
    










14
<PAGE>   489


CLASS B SHARES

Class B shares are offered at NAV, without any up-front sales charges. However,
if you redeem these shares within six years of the purchase date, you will be
assessed a Contingent Deferred Sales Charge ("CDSC") according to the following
schedule:
   
<TABLE>
<CAPTION>

                                                                         CDSC AS A % OF DOLLAR
               YEARS SINCE PURCHASE                                      AMOUNT SUBJECT TO CHARGE
               --------------------                                      ------------------------

                     <S>                                                            <C>  
                          0-1                                                        5.00%
                          1-2                                                        4.00%
                          3-4                                                        3.00%
                          4-5                                                        2.00%
                          5-6                                                        1.00%
                      more than 6                                                    0.00%
</TABLE>
    

The One Group Services Company pays a commission of 4.00% of the original
purchase price to Shareholder Servicing Agents who sell Class B shares.

CLASS C SHARES

Class C shares are offered at NAV, without any up-front sales charge. However,
if you redeem your shares within one year of the purchase date, you will be
assessed a CDSC as follows:
<TABLE>
<CAPTION>

                                                                         CDSC AS A % OF DOLLAR
               YEARS SINCE PURCHASE                                      AMOUNT SUBJECT TO CHARGE
               --------------------                                      ------------------------

                  <S>                                                                <C>  
                          0-1                                                        1.00%
                   After first year                                                   none
</TABLE>

Shareholder Servicing Agents selling Class C shares receive a commission of
1.00% of the original purchase price from The One Group Services Company.

How the CDSC is Calculated

- -        The Fund assumes that all purchases made in a given month were made on
         the first day of the month.

- -        The CDSC is based on the current market value or the original cost of
         the shares, whichever is less.

- -        A sales charge is not imposed on increases in NAV above the initial
         purchase price, nor is a sales charge assessed on shares acquired
         through reinvestment of dividends or capital gains distributions.

- -        To keep your CDSC as low as possible, the Fund first will redeem any
         shares in your account that carry no CDSC, starting with Class A
         Shares. After that, the Fund will redeem the shares you have held for
         the longest time and thus have the lowest CDSC.

- -        If you exchange Class B or Class C shares of an unrelated mutual fund
         for Class B or Class C shares of One Group in connection with a fund
         reorganization, the CDSC applicable to your original shares (including
         the period of time you have held those shares) will be applied to One
         Group shares you receive in the reorganization.




                                       15

<PAGE>   490


12b-1 FEES

12b-1 fees are paid by One Group to The One Group Services Company as
compensation for its services and expenses. The One Group Services Company in
turn pays all or part of the 12b-1 fee to Shareholder Servicing Agents that sell
shares of One Group.

- -        The 12b-1 fees vary by share class as follows:

         1.       Class A shares pay a 12b-1 fee of .35% of the average daily
                  net assets of the Fund, which is currently being waived to
                  .25%.

         2.       Class B and Class C shares pay a 12b-1 fee of 1.00% of the
                  average daily net assets of the Fund. This will cause expenses
                  for Class B and Class C shares to be higher and dividends to
                  be lower than for Class A shares.

         3.       There are no 12b-1 fees for Class I shares.

- -        12b-1 fees, together with the CDSC, help The One Group Services Company
         sell Class B and Class C shares without an "up-front" sales charge by
         defraying the costs of advancing brokerage commissions and other
         expenses paid to Shareholder Servicing Agents.

- -        The One Group Services Company may use up to .25% of the fees for
         shareholder servicing and up to .75% for distribution. During the last
         fiscal year, The One Group Services Company received 12b-1 fees
         totaling .25% and 1.00% of the average daily net assets of Class A and
         Class B shares, respectively.

- -        The One Group Services Company may pay 12b-1 fees to its affiliates and
         to Banc One Investment Advisors and its affiliates (or any sub-advisor)
         for brokerage and other agency transactions.

SALES CHARGE REDUCTIONS AND WAIVERS

REDUCING YOUR CLASS A SALES CHARGES

There are several ways you can reduce the sales charges you pay on Class A
shares:

   
1.       Right of Accumulation: You may add the market value of any Class A,
         Class B or Class C shares of a One Group Fund (except a money market
         fund) that you (and your spouse and minor children) already own to the
         amount of your next Class A purchase for purposes of calculating the
         sales charge. An Intermediary also may take advantage of this option.

2.       Letter of Intent: With an initial investment of $2,000, you may
         purchase Class A shares of one or more One Group funds in over the next
         13 months and pay the same sales charge that you would have paid if all
         shares were purchased at once. A percentage of your investment will be
         held in escrow until the full amount covered by the Letter of Intent
         has been invested.
    

To take advantage of the accumulation privilege or letter of intent, complete
the appropriate section of your fund application, or contact your investment
representative. To determine if you are eligible for the accumulation privilege,
contact The One Group Services Company at 1-800-480-4111. These programs may be
terminated or amended at any time.

WAIVER OF THE CLASS A SALES CHARGE

No sales charge is imposed on Class A shares of the Fund if the shares were:

1.       Bought with the reinvestment of dividends and capital gains
         distributions.

2.       Acquired in exchange for other Fund shares if a comparable sales charge
         has been paid for the exchanged shares.



16

<PAGE>   491

3.       Bought by officers, directors or trustees, retirees and employees (and
         their spouses and immediate family members) of:

         -        One Group.

         -        BANK ONE CORPORATION and its subsidiaries and affiliates.

         -        The One Group Services Company and its subsidiaries and
                  affiliates.

         -        State Street Bank and Trust Company and its subsidiaries and
                  affiliates.

         -        Broker/dealers who have entered into dealer agreements with
                  One Group and their subsidiaries and affiliates.

         -        An investment sub-advisor of a fund of One Group and such
                  sub-advisor's subsidiaries and affiliates.

4.       Bought by:

         -        Affiliates of BANK ONE CORPORATION and certain accounts (other
                  than IRA Accounts) for which an Intermediary acts in a
                  fiduciary, advisory, agency, custodial or similar capacity.

         -        ACCOUNTS WHICH PARTICIPATE IN SELECT AFFINITY PROGRAMS WITH
                  BANK ONE CORPORATION AND ITS AFFILIATES AND SUBSIDIARIES.

         -        Accounts as to which a bank or broker-dealer charges an asset
                  allocation fee, provided the bank or broker-dealer has an
                  agreement with The One Group Services Company.

         -        Retirement and deferred compensation plans and trusts used to
                  fund those plans, including, but not limited to, those defined
                  in sections 401(a), 403(b) or 457 of the Internal Revenue Code
                  and "rabbi trusts."

         -        Shareholder Servicing Agents who have a dealer arrangement
                  with The One Group Services Company, who place trades for
                  their own accounts or for the accounts of their clients and
                  who charge a management, consulting, or other fee for their
                  services, as well as clients of such Shareholder Servicing
                  Agents who place trades for their own accounts if the accounts
                  are linked to the master account of such Shareholder Servicing
                  Agent.

5.       Bought with proceeds from the sale of Class I shares of a One Group
         Fund or acquired in an exchange of Class I shares of a Fund for Class A
         shares of the same Fund, but only if the purchase is made within 60
         days of the sale or distribution.

6.       Bought with proceeds from the sale of shares of a mutual fund,
         including a One Group Fund, for which a sales charge was paid, but only
         if the purchase is made within 60 days of the sale or distribution.

7.       Bought in an IRA with the proceeds of a distribution from an employee
         benefit plan, but only if the purchase is made within 60 days of the
         sale or distribution and, at the time of the distribution, the employee
         benefit plan had plan assets invested in a One Group Fund.

   
8.       Bought with assets of One Group.
    

9.       Bought in connection with plans of reorganizations of the Fund, such as
         mergers, asset acquisitions and exchange offers to which the Fund is a
         party.


The waivers described in (5), (6) and (7) above will not continue indefinitely
and may be discontinued at any time without notice.




17

<PAGE>   492

WAIVER OF THE CLASS B SALES CHARGE

No sales charge is imposed on redemptions of Class B shares of the Fund:

1.       Provided that you withdraw no more than 10% of your account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age 70
         1/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

6.       Acquired in exchange for Class B shares of other One Group Funds.

WAIVER OF THE CLASS C SALES CHARGE

No sales charge is imposed on redemptions of Class C shares of the Fund:

1.       Provided that you withdraw no more than 10% of the account value
         annually. You do not have to participate in the Systematic Withdrawal
         Plan to take advantage of this waiver.

2.       If you buy the shares in connection with certain retirement plans, such
         as 401(k) and similar qualified plans.

3.       If you are the shareholder (or a joint shareholder), or a participant
         or beneficiary of certain retirement plans and you die or become
         disabled (as defined by the Tax Code), but only if the redemption is
         made within one year of death or disability.

4.       That represent a minimum required distribution from an IRA Account or
         other qualifying retirement plan, but only if you are at least age 70
         1/2.

5.       Exchanged in connection with plans of reorganizations of a Fund, such
         as mergers, asset acquisitions and exchange offers to which a Fund is a
         party.

6.       Acquired in exchange for Class C shares of other One Group Funds.

7.       If The One Group Services Company receives notice before you invest
         indicating that your Shareholder Servicing Agent, due to the type of
         account that you have, is waiving its commission.

To take advantage of any of these sales charge waivers, you must qualify for
such waiver in advance. To see if you qualify, contact The One Group Services
Company at 1-800-480-4111 or your Shareholder Servicing Agent.




18
<PAGE>   493


EXCHANGING FUND SHARES

WHAT ARE MY EXCHANGE PRIVILEGES?

You may make the following exchanges:

- -        Class I shares of the Fund may be exchanged for Class A shares of that
         Fund or for Class A or Class I shares of another One Group Fund.

- -        Class A shares of the Fund may be exchanged for Class I shares of that
         Fund or for Class A or Class I shares of another One Group Fund, but
         only if you are eligible to purchase those shares.

- -        Class B shares of the Fund may be exchanged for Class B shares of
         another One Group Fund.

- -        Class C shares of the Fund may be exchanged for Class C shares of
         another One Group Fund. One Group Funds offer a Systematic Exchange
         Privilege which allows you to automatically exchange shares of one fund
         to another on a monthly or quarterly basis. This privilege is useful in
         Dollar Cost Averaging. To participate in this privilege, please select
         it on your account application. To learn more about it, please call The
         One Group Services Company at 1-800-480-4111.

One Group does not charge a fee for this privilege. In addition, One Group may
change the terms and conditions of your exchange privileges upon 60 days written
notice.

WHEN ARE EXCHANGES PROCESSED?

Exchanges are processed the same business day they are received, provided:

- -        State Street Bank and Trust Company receives the request by 4:00 p.m.,
         ET.

- -        You have provided One Group with all of the information necessary to
         process the exchange.

- -        You have received a current prospectus of the Fund or Funds in which
         you wish to invest.

- -        You have contacted your Shareholder Servicing Agent, if necessary.

DO I PAY A SALES CHARGE ON AN EXCHANGE?

Generally, you will not pay a sales charge on an exchange. However:

- -        You will pay a sales charge if you own Class I shares of the Fund and
         you want to exchange those shares for Class A shares, unless you
         qualify for a sales charge waiver (see above).

- -        You will pay a sales charge if you bought Class A shares of a Fund:

         1.       That does not charge a sales charge and you want to exchange
                  them for shares of a Fund that does, in which case you would
                  pay the sales charge applicable to the Fund into which you are
                  exchanging.

         2.       That charged a lower sales charge than the Fund into which you
                  are exchanging, in which case you would pay the difference
                  between that Fund's sales charge and all other sales charges
                  you have already paid.


- -        If you exchange Class B or Class C shares of the Fund, you will not pay
         a sales charge at the time of the exchange, however:

         1.       Your new Class B or Class C shares will be subject to the
                  higher CDSC of either the Fund from which you exchanged, the
                  Fund into which you exchanged, or any Fund from which you have
                  previously exchanged.



19
<PAGE>   494

         2.       The current holding period for your exchanged Class B or Class
                  C shares is carried over to your new shares.

ARE EXCHANGES TAXABLE?

Generally:

- -        An exchange between classes of shares of the same Fund is not taxable
         for Federal income tax purposes.

- -        An exchange between Funds is considered a sale and generally results in
         a capital gain or loss for Federal income tax purposes.

- -        You should talk to your tax advisor before making an exchange.

ARE THERE LIMITS ON EXCHANGES?

Yes. The exchange privilege is not intended as a way for you to speculate on
short term movements in the market. Therefore:

- -        To prevent disruptions in the management of the Funds, One Group limits
         excessive exchange activity.

- -        Exchange activity is excessive if it EXCEEDS TWO SUBSTANTIVE EXCHANGE
         REDEMPTIONS (WITHIN 30 DAYS OF EACH OTHER) WITHIN A TWELVE MONTH
         PERIOD.

- -        In addition, One Group reserves the right to reject any exchange
         request (even those that are not excessive) if the Fund reasonably
         believes that the exchange will result in excessive transaction costs
         or otherwise adversely affect other shareholders.

REDEEMING FUND SHARES

WHEN CAN I REDEEM SHARES?

You may redeem all or some of your shares on any day that the Fund is open for
business.

- -        Redemption requests received by The One Group Services Company before
         4:00 p.m. ET (or when the NYSE closes) will be effective that day.

HOW DO I REDEEM SHARES?

- -        Unless you have selected the telephone option on your Account
         Application Form, you must send a written redemption request to your
         Shareholder Servicing Agent, if applicable, or to State Street Bank and
         Trust Company at the following address:

         One Group
         c/o State Street Bank and Trust Company
         P.O. Box 8528
         Boston, MA 02266-8528




20
<PAGE>   495



- -        All requests for redemptions from IRA accounts must be in writing.

- -        You may request redemption forms by calling The One Group Services
         Company at 1-800-480-4111.

- -        State Street Bank and Trust Company may require that the signature on
         your redemption request be guaranteed by a commercial bank, a member of
         a domestic stock exchange, or a member of the Securities Transfer
         Association Medallion Program or the Stock Exchange Medallion Program,
         unless:

         1.       the redemption is for $50,000 worth of shares or less;

         2.       the redemption is payable to the shareholder of record;

         3.       the redemption check is mailed to the shareholder at the
                  record address; or

         4.       the redemption is payable by wire or bank transfer (ACH) to a
                  pre-existing bank account.

- -        On the Account Application Form you may elect to have the redemption
         proceeds mailed or wired to:

         1.       a designated commercial bank; or

         2.       State Street Bank and Trust Company or your Shareholder
                  Servicing Agent.

- -        State Street Bank and Trust Company may charge you a wire redemption
         fee. The current charge is $7.00.

- -        Your redemption proceeds will be paid within seven days after receipt
         of the redemption request.

WHAT WILL MY SHARES BE WORTH?

- -        If you own Class A and Class I shares and the Fund receives your
         redemption request by 4:00 p.m. ET (or when the NYSE closes), you will
         receive that day's NAV.

- -        If you own Class B or Class C shares and the Fund receives your
         redemption request by 4:00 p.m. ET (or when the NYSE closes), you will
         receive that day's NAV, minus the amount of any applicable CDSC.

CAN I REDEEM BY TELEPHONE?

Yes, if you selected this option on your Account Application Form.

- -        Call your Shareholder Servicing Agent or State Street Bank and Trust
         Company at 1-800-480-4111 to relay your redemption request.

- -        Your redemption proceeds will be mailed or wired to the commercial bank
         account you designated on your Account Application Form.

- -        State Street Bank and Trust Company may charge you a wire redemption
         fee. The current charge is $7.00.

- -        One Group uses reasonable procedures to confirm that instructions given
         by telephone are genuine. These procedures include recording telephone
         instructions and asking for personal identification. If these
         procedures are followed, One Group will not be responsible for any
         loss, liability, cost or expense of acting upon unauthorized or
         fraudulent instructions; you bear the risk of loss.

   
- -        Redemptions from your IRA account may not be made by telephone.
    



21
<PAGE>   496


CAN I REDEEM ON A SYSTEMATIC BASIS?

If you have an account value of at least $10,000, you may elect to receive
monthly, quarterly or annual payments of not less than $100 each.

- -        Select the "Systematic Withdrawal Plan" option on the Account
         Application Form.

- -        Specify the amount you wish to receive and the frequency of the 
         payments.

- -        You may designate a person other than yourself as the payee.

- -        There is no charge for this service.

- -        If you select this option, please keep in mind that:

         1.       It may not be in your best interest to buy additional Class A
                  shares while participating in a Systematic Withdrawal Plan.
                  This is because Class A shares have an up-front sales charge.

         2.       If you own Class B or Class C shares, you or your designated
                  payee may receive systematic payments provided the payments
                  are limited to no more than 10% of your account value
                  annually, measured from the date the redemption request is
                  received.

         3.       If you are age 70 1/2, you may elect to receive payments to
                  the extent that the payment represents a minimum required
                  distribution from an IRA or other qualifying retirement plan.

         4.       If the amount of the systematic payment exceeds the income
                  earned by your account since the previous payment under the
                  Systematic Withdrawal Plan, payments will be made by redeeming
                  some of your shares. This will reduce the amount of your 
                  investment.

ADDITIONAL INFORMATION REGARDING REDEMPTIONS

- -        All redemptions will be for cash.

- -        If you redeem shares for which you paid by check, and One Group has not
         yet received payment on the check, One Group will delay forwarding your
         redemption proceeds for 10 or more days until payment has been
         collected from your bank.

- -        Because of the high cost of handling small investments, One Group
         charges a sub-minimum account fee. Accounts under $1,000 that are not
         participating in a Systematic Investment Plan will be assessed an
         annual fee of $10.00. The sub-minimum account fee will not apply to IRA
         accounts and the accounts of employees of BANK ONE CORPORATION and its
         affiliates.





22

<PAGE>   497



- -        One Group may suspend your ability to redeem when:

         1. Trading on the NYSE is restricted.

         2. The NYSE is closed (other than weekend and holiday closings).

         3. The SEC has permitted a suspension.

         4. An emergency exists.

The Statement of Additional Information offers more details about this process.

- -        You generally will recognize a gain or loss on a redemption for Federal
         income tax purposes. You should talk to your tax advisor before making
         a redemption.





23
<PAGE>   498


SHAREHOLDER INFORMATION

VOTING RIGHTS

The Fund does not hold annual shareholder meetings, but may hold special
meetings. The special meetings are held, for example, to elect or remove
Trustees, change the Fund's fundamental investment objective, or approve an
investment advisory contract.

As a Fund shareholder, you have one vote for each share that you own. The Fund,
and each class of shares within the Fund, votes separately on matters relating
solely to the Fund or class, or which affect the Fund or class differently than
other Funds of One Group. However, all shareholders will have equal voting
rights on matters that affect all shareholders of One Group equally.

   
BANK ONE CORPORATION (One First National Plaza, Chicago, Illinois 60670),
through its affiliates, may be deemed for purposes of the Investment Company Act
of 1940, to control the Fund. This is because as of December 1, 1998, BANK ONE
CORPORATION or its affiliates possessed the power to vote substantially all of
the Class I shares of the Fund.
    

On the same date, the following shareholders owned 25% or more of Class A and
Class C shares of the Fund. As a consequence, they are considered to be
controlling persons of these classes of the Fund.
   
<TABLE>
<CAPTION>

                                                                             PERCENTAGE          TYPE OF
NAME AND ADDRESS                                     FUND/CLASS               OWNERSHIP         OWNERSHIP
- ----------------                                     ----------               ---------         ---------


<S>                                                <C>                         <C>                <C>
Banc One Securities Corp Fbo                       Equity Index Fund           35.89%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp Fbo                       Equity Index Fund           61.27%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903
</TABLE>
    


DIVIDEND POLICIES

DIVIDENDS

The Fund generally declares dividends on the last business day of each month.
Dividends are distributed on the first business day of the next month. Capital
gains, if any, for the Fund are distributed at least annually.

The Fund pays dividends and distributions on a per-share basis. This means that
the value of your shares will be reduced by the amount of the payment. If you
purchase shares shortly before the record date for a dividend or the
distribution of capital gains, you will pay the full price for the shares and
receive some portion of the price back as a taxable dividend or distribution.

Dividends payable on Class I shares will be more than those payable on other
classes of shares. This is because Class A, Class B and Class C shares have
higher distribution expenses.




24
<PAGE>   499

DIVIDEND REINVESTMENT

You automatically will receive all income dividends and capital gain
distributions in additional shares of the same Fund and class, unless you have
elected to take such payment in cash. The price of the shares is the NAV
determined immediately following the dividend record date. Reinvested dividends
and distributions receive the same tax treatment as dividends and distributions
paid in cash.

If you want to change the way in which you receive dividends and distributions,
you must write to State Street Bank & Trust Company at P.O. Box 8528, Boston, MA
02266-8528, at least 15 days prior to the distribution. The change is effective
upon receipt by State Street.

SPECIAL DIVIDEND RULES FOR CLASS B SHARES

Class B shares received as dividends and capital gains distributions will be
accounted for separately. Each time any Class B shares (other than those in the
sub-account) convert to Class A shares, a percentage of the Class B shares in
the sub-account will also convert to Class A shares. (See "Conversion Feature.")

TAX TREATMENT OF THE FUNDS

TAX STATUS OF THE FUND

The Fund intends to qualify as a "regulated investment company" for Federal
income tax purposes. If the Fund qualifies, as it has in the past, it will pay
no federal income tax on the earnings it distributes to shareholders.

TAX TREATMENT OF SHAREHOLDERS

TAXATION OF SHAREHOLDER TRANSACTIONS

A sale, exchange, or redemption of Fund shares generally will produce either a
taxable gain or a loss. You are responsible for any tax liabilities generated by
your transactions.

TAXATION OF DISTRIBUTIONS

The Fund will distribute substantially all of its net investment income
(including, for this purpose, net short-term capital gains) on at least an
annual basis. Dividends you receive from the Fund, whether reinvested or
received in cash, will be taxable to you. Dividends from the Fund's net
investment income will be taxable as ordinary income and dividends from the
Fund's long-term capital gains will be taxable to you as such, regardless of how
long you have held the shares.

Dividends paid in January, but declared in October, November or December of the
previous year, will be considered to have been paid the previous December.

TAXATION OF RETIREMENT PLANS

Distributions by the Fund to qualified retirement plans will not be taxable.
However, if shares are held by a plan that ceases to qualify for tax-exempt
treatment or by an individual who has received shares as a distribution from a
retirement plan, the distributions will be taxable to the plan or individual as
described in "Taxation of Distributions." If you are considering purchasing
shares with qualified retirement plan assets, you should consult your tax
advisor for a more complete explanation of the Federal, state, local and (if
applicable) foreign tax consequences of making such an investment.


TAX INFORMATION

The Form 1099 that is mailed to you every January details your dividends and
their federal tax category. Even though the Fund provides you with this
information, you are responsible for verifying your tax liability with your tax
professional. For additional tax information see the Statement of Additional
Information. Please note that this tax discussion is general in nature; no
attempt has been made to present a complete explanation of the Federal, state,
local or foreign tax treatment of the Fund or its shareholders.




25
<PAGE>   500

SHAREHOLDER INQUIRIES

If you have any questions or need additional information, please write The One
Group Services Company at 3435 Stelzer Road, Columbus, OH 43219 or call
1-800-480-4111.



REPORTING

In March and September you will receive a financial report from One Group. In
addition, One Group will periodically send you proxy statements and other
reports.






26
<PAGE>   501


   
ORGANIZATION AND MANAGEMENT OF ONE GROUP

ONE GROUP

The Fund is a series of One Group, an open-end management investment company.
One Group currently offers of 49 separate Funds. Only One Group Equity Index
Fund is described in this prospectus; the other Funds are described in separate
prospectuses. The Fund described in this prospectus is diversified and is
supervised by the Board of Trustees.
    

THE BOARD OF TRUSTEES

The Trustees oversee the management and administration of the Fund. The Trustees
are responsible for making major decisions about each Fund's investment
objectives and policies, but delegate the day-to-day administration of the Fund
to the officers of One Group.

THE ADVISOR

Banc One Investment Advisors makes the day-to-day investment decisions for the
Fund and continuously reviews, supervises and administers the Fund's investment
programs. Banc One Investment Advisors has served as investment advisor to One
Group since 1993. Prior to that time, One Group was advised by affiliates of
Banc One Investment Advisors. In addition to One Group, Banc One Investment
Advisors serves as investment advisor to other mutual funds and individual,
corporate, charitable and retirement accounts. As of June 30, 1998, Banc One
Investment Advisors, an indirect, wholly-owned subsidiary of BANK ONE
CORPORATION, managed over $59 billion in assets.

For the fiscal year ended June 30, 1998, the Fund paid advisory fees at an
annual rate of 0.10% of the average daily net assets of the Fund.

THE DISTRIBUTOR

The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, a
wholly-owned subsidiary of The BISYS Group, Inc., markets the Fund and
distributes shares through selling brokers, financial institutions, investment
advisors, and other financial representatives.

THE ADMINISTRATOR AND SUB-ADMINISTRATOR
   

The One Group Services Company also serves as the Fund's administrator. The One
Group Services Company is responsible for responding to shareholder inquiries
and requests for information, as well as providing regulatory compliance and
reporting. For these services, The One Group Services Company receives a fee
based on the total assets of One Group. For the first $1.5 billion in One Group
assets, The One Group Services Company receives an annual fee of .20% of each
Fund's average daily net assets. The annual rate declines to .18% on assets up
to $2 billion, and to .16% when assets exceed $2 billion. The fee is calculated
daily and paid monthly. Some Funds are not included in the calculations. Banc
One Investment Advisors, the Sub-Administrator, provides office space,
equipment, and facilities, as well as legal and regulatory support.
    

THE TRANSFER AGENT, CUSTODIAN AND SUB-CUSTODIAN

State Street Bank and Trust Company, P.O. Box 8528, Boston, MA 02266-8528, or
your Shareholder Servicing Agent, if appropriate, handles shareholder
recordkeeping and statementing, distributes dividends, and processes buy and
sell requests. As the Fund's custodian, State Street holds the Fund's assets,
settles all portfolio trades and assists in calculating the Fund's net asset
values. Bank One Trust Company, N.A. serves as sub-custodian in connection with
the Fund's securities lending activities under an agreement with State Street
Bank and Trust Company. Bank One Trust Company, N.A. is paid a fee by the Fund
for this service.

YEAR 2000
   

Preparing for the Year 2000 is a high priority for One Group. Both The One Group
Services Company and Banc One Investment Advisors have formed dedicated teams to
help them successfully achieve Year 2000 compliance. In addition, these teams
are responsible for assessing the readiness of all other service providers to
One Group. Year 2000 remediation efforts are directed toward both information
technology and non-information technology systems. Non-information 
    


27

<PAGE>   502

technology systems include elevators, photocopy machines, and facsimile
machines, and should have no significant impact on the delivery of services to
One Group.

Banc One Investment Advisors has identified 49 information technology systems
and interfaces that provide service and support to One Group. Each system is
assigned a priority rating: high, medium or low. Systems rated "high" are those
which are essential to the operation of One Group. Each system rated "high" is
scheduled to be Year 2000 compliant by December 31, 1998. All systems will be
tested for compliance throughout 1999.

Many, if not all, of the systems are owned or operated by third party servicers
(for example, One Group's Custodian). Consequently, remediation efforts must be
made by those servicers. Banc One Investment Advisors and The One Group Services
Company have, and will continue to, monitor the remediation progress of the
service providers. This process involves documentation, on-site visits, and
review of remediation plans and test results. Both Banc One Investment Advisors
and The One Group Services Company have budgeted in excess of $700,000 in fiscal
year 1998 and over $1 million in fiscal year 1999 toward the remediation effort
for all systems and interfaces. Neither One Group nor its shareholders will bear
any of the direct remediation expenses.

Neither The One Group Services Company nor Banc One Investment Advisors
currently anticipates that the move to Year 2000 will have a material impact on
their ability to continue to provide the Fund with service at current levels.
Likewise, One Group currently anticipates that the move to Year 2000 will not
have a material impact on its operations.






28
<PAGE>   503



DETAILS ABOUT THE FUND'S INVESTMENT PRACTICES AND POLICIES

INVESTMENT PRACTICES

The Fund invests in a variety of securities and employs a number of investment
techniques. Each security and technique involves certain risks. What follows is
a list of the securities and techniques utilized by the Fund, as well as the
risks inherent in their use. Equity securities are subject mainly to market
risk, although certain securities may be subject to additional risks. For a more
complete discussion, see the Statement of Additional Information. Following the
table is a more complete discussion of risk.
<TABLE>
<CAPTION>

INSTRUMENT                                                                                                  RISK TYPE
- ----------                                                                                                  ---------

<S>                                                                                                           <C>
COMMON STOCK:  Shares of ownership of a company.                                                              Market

REPURCHASE AGREEMENTS:  The purchase of a security and the                                                    Credit
simultaneous commitment to return the security to the seller                                                  Market
at an agreed upon price on an agreed upon date. This is                                                      Liquidity
treated as a loan.

REVERSE REPURCHASE AGREEMENT:  The sale of a security and the                                                 Market
simultaneous commitment to buy the security back at an agreed                                                Leverage
upon price on an agreed upon date. This is treated as a
borrowing by the Fund.

SECURITIES LENDING:  The lending of up to 331/3% of the Fund's                                                Credit
total assets. In return the Fund will receive cash, other                                                     Market
securities, and/or letters of credit as collateral.                                                          Leverage

WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS:  Purchase or                                                  Market
contract to purchase securities at a fixed price for delivery                                                Leverage
at a future date.                                                                                            Liquidity

INVESTMENT COMPANY SECURITIES:  Shares of other mutual funds,                                                 Market
including One Group money market funds and shares of other
investment companies for which Banc One Investment Advisors serves as investment
advisor or administrator. Banc One Investment Advisors will waive certain fees
when investing in funds for which it serves as investment advisor.

CONVERTIBLE SECURITIES:  Bonds or preferred stock that convert to                                             Market
common stock.                                                                                                 Credit

CALL AND PUT OPTIONS: A call option gives the buyer the right to Market
Management buy, and obligates the seller of the option to sell, a security
Liquidity at a specified price. A put option gives the buyer the right to Credit
sell, and obligates the seller of the option to buy, a security at a specified
price. The Fund will sell only covered call and Leverage secured put options.

FUTURES AND RELATED OPTIONS:  A contract providing for the future                                           Management
sale and purchase of a specified amount of a specified security,                                              Market
class of securities, or an index at a specified time in the future                                            Credit
and at a specified price.                                                                                    Liquidity
                                                                                                             Leverage
</TABLE>




29
<PAGE>   504


<TABLE>
<CAPTION>


INSTRUMENT                                                                                                  RISK TYPE
- ----------                                                                                                  ---------

<S>                                                                                                       <C>         
REAL ESTATE INVESTMENT TRUSTS ("REITS"):  Pooled investment                                                  Liquidity
vehicles which invest primarily in income producing real estate                                             Management
or real estate related loans or interest.                                                                     Market

BANKERS ACCEPTANCES:  Bills of exchange or time drafts drawn on                                             Regulatory
and accepted by a commercial bank. Maturities are generally six                                                 Tax
months or less.                                                                                             Pre-payment
                                                                                                              Credit
                                                                                                             Liquidity
                                                                                                              Market

COMMERCIAL PAPER:  Secured and unsecured short-term promissory                                                Credit
notes issued by corporations and other entities. Maturities                                                  Liquidity
generally vary from a few days to nine months.                                                                Market

U.S. TREASURY OBLIGATIONS:  Bills, notes, bonds, STRIPS, and CUBES.                                           Market

TREASURY RECEIPTS:  TRs, TIGRs, and CATS.                                                                     Market

U.S. GOVERNMENT AGENCY SECURITIES:  Securities issued by agencies                                             Market
and instrumentalities of the U.S. Government. These include Ginnie                                            Credit
Mae, Fannie Mae, and Freddie Mac.

CERTIFICATES OF DEPOSIT:  Negotiable instruments with a stated                                                Market
maturity.                                                                                                     Credit
                                                                                                             Liquidity

TIME DEPOSITS:  Non-negotiable receipts issued by a bank in exchange                                         Liquidity
for the deposit of funds.                                                                                     Credit
                                                                                                              Market

RESTRICTED SECURITIES:  Securities not registered under the                                                  Liquidity
Securities Act of 1933, such as privately placed commercial paper                                             Market
and Rule 144A securities.

PREFERRED STOCK:  A class of stock that generally pays a dividend                                             Market
at a specified rate and has preference over common stock in the
payment of dividends and in liquidation.

SWAPS, CAPS AND FLOORS: The Fund may enter into these transactions Management to                            Management 
manage its exposure to changing interest rates and other factors. Credit Swaps                                Credit   
involve an exchange of obligations by two parties. Caps and Liquidity floors                                  Market   
entitle a purchaser to a principal amount from the seller of Market the cap or                               Liquidity 
floor to the extent that a specified index exceeds or falls below a
predetermined interest rate or amount.

NEW FINANCIAL PRODUCTS:  New options and futures contracts and                                              Management 
other financial products, continue to be developed and the Fund                                               Credit   
may invest in such options, contracts and products.                                                           Market   
                                                                                                             Liquidity 
</TABLE>




30
<PAGE>   505
<TABLE>
<CAPTION>


INSTRUMENT                                                                                                  RISK TYPE
- ----------                                                                                                  ---------

<S>                                                                                                        <C>             
STANDARD & POOR'S DEPOSITORY RECEIPTS ("SPDRS"):  SPDRs represent                                             Market
ownership in a long-term unit investment trust that holds a
portfolio common stocks designed to track the price performance
and dividend yield of the S&P 500 Index. A SPDR entitles a holder
to receive proportionate quarterly cash distributions
corresponding to the dividends that accrue to the S&P 500 Index
stocks in the underlying portfolio, less trust expenses.

VARIABLE AND FLOATING RATE INSTRUMENTS:  Obligations with interest                                            Market
rates which are reset daily, weekly, quarterly or some other                                                  Credit
period and which may be payable to the Fund on demand.                                                       Liquidity

WARRANTS:  Securities, typically issued with preferred stock or                                               Market
bonds, that give the holder the right to buy a proportionate                                                  Credit
amount of common stock at a specified price.
</TABLE>


INVESTMENT RISKS

Below is a more complete discussion of the types of risks inherent in the
securities and investment techniques listed above. Because of these risks, the
value of the securities held by the Fund may fluctuate, as will the value of
your investment in the Fund. Certain investments are more susceptible to these
risks than others.

- -        CREDIT RISK. The risk that the issuer of a security, or the
         counterparty to a contract, will default or otherwise become unable to
         honor a financial obligation. Credit risk is generally higher for
         non-investment grade securities. The price AND LIQUIDITY of a security
         can be adversely affected prior to actual default as its credit status
         deteriorates and the probability of default rises.

- -        LEVERAGE RISK. The risk associated with securities or practices that
         multiply small index or market movements into large changes in value.
         Leverage is often associated with investments in derivatives, but also
         may be embedded directly in the characteristics of other securities.

         -        HEDGED. When a derivative (a security whose value is based on
                  another security or index) is used as a hedge against an
                  opposite position that the Fund also holds, any loss generated
                  by the derivative should be substantially offset by gains on
                  the hedged investment, and vice versa. While hedging can
                  reduce or eliminate losses, it can also reduce or eliminate
                  gains. Hedges are sometimes subject to imperfect matching
                  between the derivative and underlying security, and there can
                  be no assurance that the Fund's hedging transactions will be
                  effective.

         -        SPECULATIVE. To the extent that a derivative is not used as a
                  hedge, the Fund is directly exposed to the risks of that
                  derivative. Gains or losses from speculative positions in a
                  derivative may be substantially greater than the derivative's
                  original cost.

- -        LIQUIDITY RISK. The risk that certain securities may be difficult or
         impossible to sell at the time and the price that would normally
         prevail in the market. The seller may have to lower the price, sell
         other securities instead or forego an investment opportunity, any of
         which could have a negative effect on fund management or performance.
         This includes the risk of missing out on an investment opportunity
         because the assets necessary to take advantage of it are tied up in
         less advantageous investments.

- -        MANAGEMENT RISK. The risk that a strategy used by the Fund's management
         may fail to produce the intended result. This includes the risk that
         changes in the value of a hedging instrument will not match those of
         the asset being hedged. Incomplete matching can result in unanticipated
         risks.

- -        MARKET RISK. The risk that the market value of a security may move up
         and down, sometimes rapidly and unpredictably. These fluctuations may
         cause a security to be worth less than the price originally paid for
         it, or less than it was worth at an earlier time. Market risk may
         affect a single issuer, industry, sector of the economy or the 



31
<PAGE>   506

         market as a whole. There is also the risk that the current interest
         rate may not accurately reflect existing market rates. For fixed income
         securities, market risk is largely, but not exclusively, influenced by
         changes in interest rates. A rise in interest rates typically causes a
         fall in values, while a fall in rates typically causes a rise in
         values. Finally, key information about a security or market may be
         inaccurate or unavailable. This is particularly relevant to investments
         in foreign securities.

- -        PRE-PAYMENT RISK. The risk that the principal repayment of a security
         will occur at an unexpected time, especially that the repayment of a
         mortgage or asset-backed security occurs either significantly sooner or
         later than expected. Changes in pre-payment rates can result in greater
         price and yield volatility. Pre-payments generally accelerate when
         interest rates decline.

         When mortgage and other obligations are pre-paid, the Fund may have to
         reinvest in securities with a lower yield. Further, with early
         prepayment, the Fund may fail to recover any premium paid, resulting in
         an unexpected capital loss.

- -        TAX RISK. The risk that the issuer of the securities will fail to
         comply with certain requirements of the Internal Revenue Code, which
         would cause adverse tax consequences.

   
- -        REGULATORY RISK. The risk associated with Federal and state laws which
         may restrict the remedies that a lender has when a borrower defaults on
         loans. These laws include restrictions on foreclosures, redemption
         rights after foreclosure, Federal and state bankruptcy and debtor
         relief laws, restrictions on "due on sale" clauses, and state usury
         laws.
    

INVESTMENT POLICIES

The Fund's investment objective and the investment policies summarized below are
fundamental. This means that they cannot be changed without the consent of a
majority of the outstanding shares of the Fund. The full text of the fundamental
policies can be found in the Statement of Additional Information.

The Fund may not:

1.       Purchase an issuer's securities if as a result more than 5% of its
         total assets would be invested in the securities of that issuer or the
         Fund would own more than 10% of the outstanding voting securities of
         that issuer. This does not include securities issued or guaranteed by
         the United States, its agencies or instrumentalities, and repurchase
         agreements involving these securities. This restriction applies with
         respect to 75% of the Fund's total assets.

2.       Concentrate its investments in the securities of one or more issuers
         conducting their principal business in a particular industry or group
         of industries. This does not include obligations issued or guaranteed
         by the U.S. government or its agencies and instrumentalities and
         repurchase agreements involving such securities.

3.       Make loans, except that the Fund may (i) purchase or hold debt
         instruments in accordance with its investment objective and policies;
         (ii) enter into repurchase agreements; and (iii) engage in securities
         lending.

4.       Invest more than 10% of its total assets in securities issued or
         guaranteed by the United States, its agencies or instrumentalities.

Additional investment policies can be found in the Statement of Additional
Information.

TEMPORARY DEFENSIVE POSITION

Sometimes Banc One Investment Advisors decides that the Fund should temporarily
be invested in cash and cash equivalents. Cash equivalents include:

- -        Securities issued by the U.S. Government, its agencies and
         instrumentalities

- -        Repurchase Agreements





32
<PAGE>   507

- -        Certificates of Deposit

- -        Bankers' Acceptances

- -        Commercial Paper (rated in one of the two highest rating categories)

- -        Variable Rate Master Demand Notes

- -        Bank Money Market Deposit Accounts

The Fund may temporarily invest only 10% of its total assets in cash and cash
equivalents.

While the Fund is engaged in a temporary defensive position, it will not be
pursuing its investment objective. Therefore, the Fund will pursue a temporary
defensive position only when market conditions warrant.

PORTFOLIO TURNOVER

Portfolio turnover may vary greatly from year to year, as well as within a
particular year.

Higher portfolio turnover rates will likely result in higher transaction costs
to the Fund and may result in additional tax consequences to you. To the extent
portfolio turnover results in short-term capital gains, such gains will
generally be taxed at ordinary income tax rates. The portfolio turnover rate for
the Fund for the fiscal year ended June 30, 1998 is shown on the Financial
Highlights.





33
<PAGE>   508


APPENDIX

DESCRIPTION OF RATINGS

The following is a summary of published ratings by major credit rating agencies.
Credit ratings evaluate only the safety of principal and interest payments, not
the market value risk of lower quality securities. Credit rating agencies may
fail to change credit ratings to reflect subsequent events on a timely basis.
Although Banc One Investment Advisors considers security ratings when making
investment decisions, it also performs its own investment analysis and does not
rely solely on the ratings assigned by credit agencies.

Unrated securities will be treated as non-investment grade securities unless
Banc One Investment Advisors determines that such securities are the equivalent
of investment grade securities. Securities that have received different ratings
from more than one agency are considered investment grade if at least one agency
has rated the security investment grade.

DESCRIPTION OF COMMERCIAL PAPER RATINGS

DUFF & PHELPS CREDIT RATING CO. ("DUFF")

D-1+     Highest certainty of timely payment. Short-term liquidity, including
         internal operating factors and/or access to alternative sources of
         funds, is outstanding and safety is just below risk-free U.S. Treasury
         obligations.

D-1      Very high certainty of timely payment. Liquidity factors are excellent
         and supported by good fundamental protection factors. Risk factors are
         minor.

D-1-     High certainty of timely payment. Liquidity factors are strong and
         supported by good fundamental protection factors. Risk factors are very
         small.

STANDARD & POOR'S CORPORATION ("S&P")

A-1      Highest category of commercial paper. Capacity to meet financial
         commitment is strong. Obligations designated with a plus sign (+)
         indicate that capacity to meet financial commitment is extremely
         strong.

A-2      Issues somewhat more susceptible to adverse effects of changes in
         circumstances and economic conditions than obligations in higher rating
         categories. However, the capacity to meet financial commitments is
         satisfactory.

FITCH'S IBCA, INC. ("FITCH")

F1       Highest capacity for timely repayment. Those issues rated A1+ possess a
         particularly strong credit feature.

F2       Satisfactory capacity for timely repayment although such capacity may
         be susceptible to adverse changes in business, economic or financial
         conditions.




34
<PAGE>   509



MOODY'S INVESTORS SERVICE ("MOODY'S")

PRIME-1 Superior ability for repayment.

PRIME-2 Strong ability for repayment.

DESCRIPTION OF PREFERRED STOCK RATINGS

MOODY'S

aaa      Top-quality preferred stock. This rating indicates good asset
         protection and the least risk of dividend impairment within the
         universe of preferred stocks.

aa       High-grade preferred stock. This rating indicates that there is a
         reasonable assurance the earnings and asset protection will remain
         relatively well maintained in the foreseeable future.

a        Upper-medium grade preferred stock. While risks are judged to be
         somewhat greater than in the "aaa" and "aa" classification, earnings
         and asset protection are, nevertheless, expected to be maintained at
         adequate levels.

baa      Medium-grade preferred stock, neither highly protected nor poorly
         secured. Earnings and asset protection appear adequate at present but
         may be questionable over any great length of time.

S&P

S&P's preferred stock rating is an assessment of the capacity and willingness of
an issuer to pay preferred stock dividends and any applicable sinking fund
obligations.

AAA      Highest rating. This rating indicates an extremely strong capacity to
         pay the preferred stock obligations.

AA       High-quality, fixed-income security. The capacity to pay preferred
         stock obligations is very strong, although not as overwhelming as for
         issues rated "AAA."

A        Backed by a sound capacity to pay the preferred stock obligations,
         although it is somewhat more susceptible to the adverse effects of
         changes in circumstances and economic conditions.

BBB      Backed by an adequate capacity to pay the preferred stock obligations.
         Whereas the issuer normally exhibits adequate protection parameters,
         adverse economic conditions or changing circumstances are more likely
         to lead to a weakened capacity to make payments for a preferred stock
         in this category than for issues in the "A" category.






35
<PAGE>   510


SHORT-TERM DEBT RATINGS

Thompson Bank Watch, Inc. ("TBW") assigns ratings to specific debt instruments
with original maturities of one year or less. The TBW Short-Term ratings
specifically assess the likelihood of an untimely payment of principal and
interest.

TBW-1    Very high degree of likelihood that principal and interest will be paid
         on a timely basis.

TBW-2    While degree of safety regarding timely repayment of principal and
         interest is strong, the relative degree is not as high as for issues
         rated TBW-1.

TBW-3    Lowest investment grade category. While more susceptible to adverse
         developments than obligations with higher ratings, capacity to service
         principal and interest in a timely fashion is considered adequate.

TBW-4    Non-investment grade and, therefore, speculative.







36
<PAGE>   511


   
Investment Advisor and Sub-Administrator
Banc One Investment Advisors Corporation
1111 Polaris Parkway
P.O. Box 710211
Columbus, OH 43271-0211

Distributor
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Administrator
The One Group Services Company
3435 Stelzer Road
Columbus, OH 43219

Transfer Agent and Custodian
State Street Bank and Trust Company
P.O. Box 8528
Boston, MA 02266-8528

Legal Counsel
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, D.C. 20005

Independent Accountants
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215

The Statement of Additional Information contains more detailed information about
the Fund. The current Statement of Additional Information has been filed with
the Securities and Exchange Commission and is available without charge by
calling 1-800-480-4111 or by writing to The One Group Services Company at 3435
Stelzer Road, Columbus, Ohio 43219. The Statement of Additional Information is
incorporated into this prospectus by reference. The SEC maintains a Website
(www.sec.gov) that contains the Statement of Additional Information, materials
incorporated by reference and other information regarding One Group(R).
    



<PAGE>   512
                       STATEMENT OF ADDITIONAL INFORMATION

   
                                  ONE GROUP(R)


              ONE GROUP U.S. TREASURY SECURITIES MONEY MARKET FUND
               (THE "U.S. TREASURY SECURITIES MONEY MARKET FUND")
        ONE GROUP PRIME MONEY MARKET FUND (THE "PRIME MONEY MARKET FUND")
    ONE GROUP MUNICIPAL MONEY MARKET FUND (THE "MUNICIPAL MONEY MARKET FUND")
  ONE GROUP OHIO MUNICIPAL MONEY MARKET FUND (THE "OHIO MUNICIPAL MONEY MARKET
                                     FUND")

                  ONE GROUP BALANCED FUND (THE "BALANCED FUND")
          ONE GROUP LARGE CAP GROWTH FUND (THE "LARGE CAP GROWTH FUND")
           ONE GROUP LARGE CAP VALUE FUND (THE "LARGE CAP VALUE FUND")
            ONE GROUP MID CAP GROWTH FUND (THE "MID CAP GROWTH FUND")

   ONE GROUP INTERNATIONAL EQUITY INDEX FUND (THE "INTERNATIONAL EQUITY INDEX
                                     FUND")

             ONE GROUP MID CAP VALUE FUND (THE "MID CAP VALUE FUND")
              ONE GROUP EQUITY INDEX FUND (THE "EQUITY INDEX FUND")
             ONE GROUP EQUITY INCOME FUND (THE "EQUITY INCOME FUND")
       ONE GROUP DIVERSIFIED EQUITY FUND (THE "DIVERSIFIED EQUITY FUND")
          ONE GROUP SMALL CAP GROWTH FUND (THE "SMALL CAP GROWTH FUND")
         ONE GROUP INTERMEDIATE BOND FUND (THE "INTERMEDIATE BOND FUND")

               ONE GROUP INCOME BOND FUND (THE "INCOME BOND FUND")
           ONE GROUP GOVERNMENT BOND FUND (THE "GOVERNMENT BOND FUND")

     ONE GROUP ULTRA SHORT-TERM BOND FUND (THE "ULTRA SHORT-TERM BOND FUND")
           ONE GROUP SHORT-TERM BOND FUND (THE "SHORT-TERM BOND FUND")
    
         ONE GROUP TREASURY & AGENCY FUND (THE "TREASURY & AGENCY FUND")
           ONE GROUP HIGH YIELD BOND FUND (THE "HIGH YIELD BOND FUND")



                                       1
<PAGE>   513

   
   ONE GROUP INTERMEDIATE TAX-FREE BOND FUND (THE "INTERMEDIATE TAX-FREE BOND
                                     FUND")
          ONE GROUP MUNICIPAL INCOME FUND (THE "MUNICIPAL INCOME FUND")
                      ONE GROUP ARIZONA MUNICIPAL BOND FUND
                       (THE "ARIZONA MUNICIPAL BOND FUND")
                                 ONE GROUP WEST
     VIRGINIA MUNICIPAL BOND FUND (THE "WEST VIRGINIA MUNICIPAL BOND FUND")
                    ONE GROUP LOUISIANA MUNICIPAL BOND FUND
                     (THE "LOUISIANA MUNICIPAL BOND FUND")
      ONE GROUP OHIO MUNICIPAL BOND FUND (THE "OHIO MUNICIPAL BOND FUND")
   ONE GROUP KENTUCKY MUNICIPAL BOND FUND (THE "KENTUCKY MUNICIPAL BOND FUND")
      ONE GROUP TEXAS MUNICIPAL BOND FUND (THE "TEXAS MUNICIPAL BOND FUND")
     ONE GROUP TREASURY MONEY MARKET FUND (THE "TREASURY MONEY MARKET FUND")
          ONE GROUP TREASURY ONLY MONEY MARKET FUND (THE "TREASURY ONLY
                              MONEY MARKET FUND")
                     ONE GROUP GOVERNMENT MONEY MARKET FUND
                      (THE "GOVERNMENT MONEY MARKET FUND")
                              ONE GROUP TAX-EXEMPT
             MONEY MARKET FUND (THE "TAX-EXEMPT MONEY MARKET FUND")
 ONE GROUP INSTITUTIONAL PRIME MONEY MARKET FUND (THE "INSTITUTIONAL PRIME MONEY
                                  MARKET FUND")
           ONE GROUP INVESTOR GROWTH FUND (THE "INVESTOR GROWTH FUND")
  ONE GROUP INVESTOR GROWTH & INCOME FUND (THE "INVESTOR GROWTH & INCOME FUND")
         ONE GROUP INVESTOR BALANCED FUND (THE "INVESTOR BALANCED FUND")
     ONE GROUP INVESTOR CONSERVATIVE GROWTH FUND (THE "INVESTOR CONSERVATIVE
                                 GROWTH FUND")
            ONE GROUP INVESTOR AGGRESSIVE GROWTH FUND (THE "INVESTOR
                               AGGRESSIVE GROWTH")
     ONE GROUP INVESTOR FIXED INCOME FUND (THE "INVESTOR FIXED INCOME FUND")
           ONE GROUP SMALL CAP VALUE FUND (THE "SMALL CAP VALUE FUND")
    


                                       2
<PAGE>   514

   
       ONE GROUP DIVERSIFIED MID CAP FUND (THE "DIVERSIFIED MID CAP FUND")
 ONE GROUP DIVERSIFIED INTERNATIONAL FUND (THE "DIVERSIFIED INTERNATIONAL FUND")
    ONE GROUP MARKET EXPANSION INDEX FUND (THE "MARKET EXPANSION INDEX FUND")
                      ONE GROUP BOND FUND (THE "BOND FUND")
 ONE GROUP SHORT-TERM MUNICIPAL BOND FUND (THE "SHORT-TERM MUNICIPAL BOND FUND")
             ONE GROUP TAX-FREE BOND FUND (THE "TAX-FREE BOND FUND")
   ONE GROUP MICHIGAN MUNICIPAL BOND FUND (THE "MICHIGAN MUNICIPAL BOND FUND")
  ONE GROUP MICHIGAN MUNICIPAL MONEY MARKET FUND (THE "MICHIGAN MUNICIPAL MONEY
                                 MARKET FUND")
 ONE GROUP CASH MANAGEMENT MONEY MARKET FUND (THE "CASH MANAGEMENT MONEY MARKET
                                     FUND")
    ONE GROUP TREASURY CASH MANAGEMENT MONEY MARKET FUND (THE "TREASURY CASH
                         MANAGEMENT MONEY MARKET FUND")
 ONE GROUP TREASURY PRIME CASH MANAGEMENT MONEY MARKET FUND (THE "TREASURY PRIME
                      CASH MANAGEMENT MONEY MARKET FUND")
ONE GROUP U.S. GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET FUND
         (THE "U.S. GOVERNMENT SECURITIES CASH MANAGEMENT MONEY MARKET
                                   FUND") AND
   ONE GROUP MUNICIPAL CASH MANAGEMENT MONEY MARKET FUND (THE "MUNICIPAL CASH
                         MANAGEMENT MONEY MARKET FUND")
                  (EACH A "FUND," AND COLLECTIVELY THE "FUNDS")


                                   MARCH 18, 1999
This Statement of Additional Information is not a Prospectus, but supplements
and should be read in conjunction with the Prospectuses dated March 18, 1999.
This Statement of Additional Information is incorporated in its entirety into
each Fund's Prospectus. A copy of each Prospectus is available without charge by
writing to The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio
43219, or by telephoning toll free (800)-480-4111.

    





                                       3
<PAGE>   515

<TABLE>
<CAPTION>
                               TABLE OF CONTENTS

                                                                      PAGE
                                                                      ----

   
<S>                                                                     <C>
THE TRUST..............................................................  5
    
INVESTMENT OBJECTIVES AND POLICIES.....................................  8     
     Additional Information on Fund Instruments .......................  8
         Asset-Backed Securities ......................................  8
         Bank Obligations .............................................  8
         Commercial Paper .............................................  9
         Common Stock ................................................. 10
         Convertible Securities ....................................... 10
         Demand Features .............................................. 10
         Foreign Investments .......................................... 11
              Limitations on the Use of Foreign Investments  
         Foreign Currency Transactions ................................ 13
              Forward Foreign Currency Exchange Contracts ............. 16
              Foreign Currency Futures Contracts ...................... 16
              Foreign Currency Options ................................ 18
              Foreign Currency Conversion ............................. 19
              Other Foreign Currency Hedging Strategies ............... 20
              Risk Factors in Hedging Transactions .................... 20
         Futures and Options Trading .................................. 20
              Futures Contracts ....................................... 21
              Limitations on the Use of Futures Contracts ............. 22
              Risk Factors in Futures Transactions .................... 23
              Options Contracts ....................................... 25
              Writing (Selling) Covered Calls ......................... 26
              Purchasing Call Options ................................. 29
              Purchasing Put Options .................................. 29
              Secured Puts ............................................ 29
              Straddles and Spreads ................................... 29
              Risk Factors in Options Transactions .................... 30
              Limitations on the Use of Options ....................... 31
         Government Securities ........................................ 31
         High Quality Investments With Regard to the Money Market and
              Institutional Money Market Funds ........................ 31
         High Yield/High Risk Securities/Junk Bonds ................... 33
   
         Index Investing by the Equity Index, International
              Equity Index and Market Expansion Index Funds ........... 35
    
         Investment Company Securities ................................ 38
         Loan Participations and Assignments .......................... 38
         Mortgage-Related Securities .................................. 39
              Mortgage-Backed Securities (CMOs and REMICs) ............ 39
              Limitations on the Use of Mortgage Backed Securities .... 42
              Mortgage Dollar Rolls ................................... 43
              Stripped Mortgage Backed Securities ..................... 44
</TABLE>




                                       2
<PAGE>   516

<TABLE>
<S>                                                                                                        <C>
              Adjustable Rate Mortgage Loans ............................................................. 44
              Risk Factors of Mortgage-Related Securities ................................................ 46
         Municipal Securities ............................................................................ 48
              Risk Factors in Municipal Securities ....................................................... 50
              Limitations on the Use of Municipal Securities ............................................. 51
              Arizona Municipal Securities ............................................................... 52
              Kentucky Municipal Securities .............................................................. 54
              Louisiana Municipal Securities ............................................................. 54
   
              Michigan Municipal Securities .............................................................. 55
    
              Ohio Municipal Securities .................................................................. 57
              Texas Municipal Securities ................................................................. 58
              West Virginia Municipal Securities ......................................................... 59
         New Financial Products .......................................................................... 59
         PERCs ........................................................................................... 60
         Preferred Stock ................................................................................. 60
         Real Estate Investment Trusts ("REITs") ......................................................... 60
         Repurchase Agreements ........................................................................... 61
         Reverse Repurchase Agreements ................................................................... 61
         Restricted Securities ........................................................................... 62
         Securities Lending .............................................................................. 64
         Short-term Funding Agreements ................................................................... 65
         SPDRs ........................................................................................... 65
         Structured Instruments .......................................................................... 65
         Swaps, Caps and Floors .......................................................................... 67
         Treasury Receipts ............................................................................... 69
         U.S. Treasury Obligations ....................................................................... 69
         Variable and Floating Rate Instruments .......................................................... 70
         Warrants ........................................................................................ 72
         When-Issued Securities and Forward Commitments .................................................. 72
     Investment Restrictions ............................................................................. 73
     Portfolio Turnover .................................................................................. 81
     Additional Tax Information Concerning All Funds ..................................................... 83
     Additional Tax Information Concerning the Tax-Advantaged Funds ...................................... 87
   
     Additional Tax Information Concerning the International
         Funds ........................................................................................... 89
    
     Foreign Tax Credit .................................................................................. 90
VALUATION     ............................................................................................ 91
     Valuation of the Money Market and Institutional Money
         Market Funds .................................................................................... 91
     Valuation of the Equity Funds, the Bond Funds and the
         Municipal Bond Funds ............................................................................ 91
ADDITIONAL INFORMATION REGARDING THE
     CALCULATION OF PER SHARE NET ASSET VALUE ............................................................ 92
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION ........................................................... 93
MANAGEMENT OF THE TRUST .................................................................................. 96
     Trustees & Officers ................................................................................. 96
     Investment Advisor and Sub-Advisors .................................................................102
</TABLE>




                                       3
<PAGE>   517

<TABLE>
<S>                                                                                                           <C>
     Glass-Steagall Act ..................................................................................   107
     Portfolio Transactions ..............................................................................   108
     Administrator .......................................................................................   111
     Distributor .........................................................................................   118
     Distribution Plan ...................................................................................   118
     Custodian and Transfer Agent ........................................................................   122
   
     Experts  ............................................................................................   124
    
ADDITIONAL INFORMATION ...................................................................................   125
     Description of Shares ...............................................................................   125
     Shareholder and Trustee Liability ...................................................................   127
     Performance .........................................................................................   128
     Calculation of Performance Data .....................................................................   128
     Miscellaneous .......................................................................................   149
</TABLE>






                                       4
<PAGE>   518

                                    THE TRUST


   
         One Group (the "TRUST") is an open-end management investment company.
The Trust consists of fifty-four series of units of beneficial interest
("SHARES") each representing interests in one of the following separate
investment portfolios ("FUNDS"):

         Money Market Funds. The U.S. Treasury Securities Money Market Fund
         (formerly, the U.S. Treasury Money Market Portfolio), the Prime Money
         Market Fund, the Municipal Money Market Fund (formerly, the Tax-Free
         Obligations Portfolio) the Ohio Municipal Money Market Fund, and the
         Michigan Municipal Money Market Fund (formerly, Pegasus Michigan
         Municipal Money Market Fund) (these five Funds being collectively
         referred to as the "MONEY MARKET FUNDS"),

         Equity Funds. The Equity Income Fund (formerly, the Income Equity
         Fund), the Mid Cap Value Fund (formerly, the Disciplined Value Fund),
         the Mid Cap Growth Fund (formerly, the Growth Opportunities Fund and
         the Small Company Growth Fund), the Equity Index Fund, the
         International Equity Index Fund, the Large Cap Value Fund (formerly,
         the Large Company Value Fund and the Quantitative Equity Portfolio),
         the Large Cap Growth Fund (formerly, the Large Company Growth Fund),
         the Balanced Fund (formerly, the Asset Allocation Fund and the Flexible
         Balanced Portfolio), the Diversified Equity Fund (formerly, the Value
         Growth Fund), the Small Cap Growth Fund (formerly, the Small
         Capitalization Fund and the Gulf South Growth Fund), the Small Cap
         Value Fund (formerly, Pegasus Small-Cap Opportunity Fund), the
         Diversified Mid Cap Fund (formerly, Pegasus Mid-Cap Opportunity Fund),
         Diversified International Fund (formerly, Pegasus International Equity
         Fund), and the Market Expansion Index Fund (formerly, Pegasus Market
         Expansion Index Fund) (these fourteen Funds being collectively referred
         to as the "EQUITY Funds"),

         Bond Funds. The Intermediate Bond Fund (formerly, Pegasus Intermediate
         Bond Fund), the Income Bond Fund (formerly, Pegasus Multi-Sector Bond
         Fund), the Government Bond Fund, the Ultra Short-Term Bond Fund
         (formerly the Ultra Short -Term Income Fund and the Government ARM
         Fund), the Short-Term Bond Fund (formerly, the Limited Volatility Bond
         Fund , the Treasury & Agency Fund, the High Yield Bond Fund (formerly,
         the Income Fund) and the Bond Fund (formerly, Pegasus Bond Fund) (these
         eight Funds being collectively referred to as the "BOND FUNDS"),

         Municipal Bond Funds. The Intermediate Tax-Free Bond Fund, the
         Municipal Income Fund (formerly the Tax-Free Bond Fund), the Tax-Free
         Bond Fund (formerly, Pegasus Municipal Bond Fund), the Short-Term
         Municipal Bond Fund 
    

                                       5
<PAGE>   519

   
         (formerly, Pegasus Short Municipal Bond Fund), the Ohio Municipal Bond
         Fund, the Texas Municipal Bond Fund, the West Virginia Municipal Bond
         Fund, the Kentucky Municipal Bond Fund, the Arizona Municipal Bond
         Fund, the Louisiana Municipal Bond Fund, and the Michigan Municipal
         Bond Fund (formerly, Pegasus Michigan Municipal Bond Fund) (these
         eleven Funds being collectively referred to as the "MUNICIPAL BOND
         FUNDS"),

         Institutional Money Market Funds. The Treasury Money Market Fund, the
         Treasury Only Money Market Fund, the Government Money Market Fund, the
         Tax-Exempt Money Market Fund, the Institutional Prime Money Market
         Fund, the Cash Management Money Market Fund (formerly, Pegasus Cash
         Management Fund), the Treasury Cash Management Money Market Fund
         (formerly, Pegasus Treasury Cash Management Fund), the Treasury Prime
         Cash Management Money Market Fund (formerly, Pegasus Treasury Prime
         Cash Management Fund), the U.S. Government Securities Cash Management
         Money Market Fund (formerly, Pegasus U.S. Government Securities Cash
         Management Fund), and the Municipal Cash Management Money Market Fund
         (formerly, Pegasus Municipal Cash Management Fund) (these ten Funds
         being collectively referred to as the "INSTITUTIONAL MONEY MARKET
         FUNDS"),

         Funds of Funds. The Investor Growth Fund, the Investor Growth & Income
         Fund, the Investor Aggressive Growth Fund, the Investor Fixed Income
         Fund, the Investor Conservative Growth Fund, and the Investor Balanced
         Fund (these six Funds being collectively referred to as the "FUNDS OF
         FUNDS").


TAX-ADVANTAGED FUNDS. The Municipal Money Market Fund, the Ohio Municipal Money
Market Fund, the Michigan Municipal Money Market Fund, the Municipal Bond Funds,
the Tax-Exempt Money Market Fund, and the Municipal Cash Management Money Market
Fund are also referred to as the "TAX-ADVANTAGED FUNDS."

INTERNATIONAL FUNDS. The Diversified International Fund and the International
Equity Index Fund are also referred to as the "INTERNATIONAL FUNDS."

CASH MANAGEMENT FUNDS. The Cash Management Money Market Fund, the Treasury Cash
Management Money Market Fund, the Treasury Prime Cash Management Money Market
Fund, the U.S. Government Securities Cash Management Money Market Fund, and the
Municipal Cash Management Money Market Fund are also referred to as the "CASH
MANAGEMENT FUNDS").

DIVERSIFICATION. All of the Trust's Funds are diversified, as defined under the
Investment Company Act of 1940, as amended (the "1940 ACT"), except the Ohio
Municipal Bond Fund, the Kentucky Municipal Bond Fund, the West Virginia
Municipal Bond Fund, the Texas Municipal Bond Fund, the Arizona Municipal Bond
Fund, the Michigan Municipal Bond Fund, the Michigan Municipal Money Market
Fund, the Ohio Municipal Money Market Fund, and the Louisiana Municipal Bond
Fund, which are non-diversified.
    



                                       6
<PAGE>   520

   
SHARE CLASSES. Shares in the Funds of the Trust (other than the Institutional
Money Market Funds and the Money Market Funds) are generally offered in four
separate classes: Class I Shares, Class A Shares, Class B Shares and Class C
Shares.(1) The U.S. Treasury Securities Money Market Fund and the Prime Money
Market Fund offer Class A Shares, Class B Shares, Class C Shares, Class I Shares
and Service Class Shares. The Institutional Money Market Funds (other than the
Cash Management Funds) offer only a single class of shares. The Michigan
Municipal Money Market Fund, the Ohio Municipal Money Market Fund and the
Municipal Money Market Fund offer Class A, Class C, Class I and Service Class
Shares. The Cash Management Funds offer Class A and Class I Shares only. Much of
the information contained herein expands upon subjects discussed in the
Prospectuses for the respective Funds. No investment in a particular class of
Shares of a Fund should be made without first reading that Fund's Prospectus.

Pegasus Merger. On March __, 1998, the Funds of the Trust merged with the
Pegasus Funds pursuant to an Agreement and Plan of Reorganization. Except for
the following Funds listed below, One Group Funds are considered to be the
surviving funds for accounting purposes:

1.    the Income Bond Fund,
2.    the Intermediate Bond Fund,
3.    the Small Cap Value Fund,
4.    the Diversified Mid Cap Fund,
5.    the Diversified International Fund,
6.    the Market Expansion Index Fund,
7.    the Bond Fund,
8.    the Short-Term Municipal Bond Fund,
9.    the Tax-Free Bond Fund,
10.   the Michigan Municipal Bond Fund,
11.   the Michigan Municipal Money Market Fund,
12.   the Cash Management Money Market Fund,
13.   the Treasury Cash Management Money Market Fund,
14.   the Treasury Prime Cash Management Money Market Fund,
15.   the U.S. Government Securities Cash Management Money Market Fund, and
16.   the Municipal Cash Management Money Market Fund.


These 16 Funds are collectively referred to as the PREDECESSOR FUNDS.
[FN]
(1)Class C shares are currently not available for purchase in all of the Funds.
</FN>
    




                                       7
<PAGE>   521

                       INVESTMENT OBJECTIVES AND POLICIES


         The following policies supplement each Fund's investment objective and
policies as set forth in the respective Prospectus for that Fund.

ADDITIONAL INFORMATION ON FUND INSTRUMENTS

ASSET-BACKED SECURITIES

         Asset-backed securities consist of securities secured by company
receivables, home equity loans, truck and auto loans, leases, credit card
receivables and other securities backed by other types of receivables or other
assets. These securities are generally pass-through securities, which means that
principal and interest payments on the underlying securities (less servicing
fees) are passed through to shareholders on a pro rata basis. These securities
involve prepayment risk, which is the risk that the underlying debt may be
refinanced or paid off prior to their maturities during periods of declining
interest rates. In that case, a Fund manager may have to reinvest the proceeds
from the securities at a lower rate. Potential market gains on a security
subject to prepayment risk may be more limited than potential market gains on a
comparable security that is not subject to prepayment risk. Under certain
prepayment rate scenarios, a Fund may fail to recoup any premium paid on
asset-backed securities.

BANK OBLIGATIONS

         Bank obligations consist of bankers' acceptances, certificates of
deposit, and demand and time deposits.

         BANKERS' ACCEPTANCES are negotiable drafts or bills of exchange
typically drawn by an importer or exporter to pay for specific merchandise,
which are "accepted" by a bank, meaning, in effect, that the bank
unconditionally agrees to pay the face value of the instrument on maturity.
Bankers' acceptances invested in by the Funds will be those guaranteed by
domestic and foreign banks and savings and loan associations having, at the time
of investment, total assets in excess of $1 billion (as of the date of their
most recently published financial statements).

         CERTIFICATES OF DEPOSIT are negotiable certificates issued against
funds deposited in a commercial bank or a savings and loan association for a
definite period of time and earning a specified return. Certificates of deposit
will be those of domestic and foreign branches of U.S. commercial banks which
are members of the Federal Reserve System or the deposits of which are insured
by the Federal Deposit Insurance Corporation, and in certificates of deposit of
domestic savings and loan associations the deposits of which are insured by the
Federal Deposit Insurance Corporation if, at the time of purchase, such
institutions have total assets in excess of $1 billion (as of the date of their
most recently published financial statements). Certificates of deposit may also
include those issued by foreign banks outside the United States with total
assets at the time of purchase in excess of the equivalent of $1 billion. The
Funds may also invest in Eurodollar certificates of deposit, which are U.S.
dollar-denominated certificates of deposit issued by branches of


                                       8
<PAGE>   522

foreign and domestic banks located outside the United States, and Yankee
certificates of deposit, which are certificates of deposit issued by a U.S.
branch of a foreign bank denominated in U.S. dollars and held in the United
States. Certain Funds may also invest in obligations (including banker's
acceptances and certificates of deposit) denominated in foreign currencies (see
"Foreign Investments" herein).

         DEMAND DEPOSITS are funds deposited in a commercial bank or a savings
and loan association which, without prior notice to the bank, may be withdrawn
generally by negotiable draft. Time and demand deposits will be maintained only
at banks or savings and loan associations from which a Fund could purchase
certificates of deposit. TIME DEPOSITS are interest-bearing non-negotiable
deposits at a bank or a savings and loan association that have a specific
maturity date. A time deposit earns a specific rate of interest over a definite
period of time. Time deposits cannot be traded on the secondary market and those
exceeding seven days and with a withdrawal penalty are considered to be
illiquid.

COMMERCIAL PAPER

         Commercial paper consists of promissory notes issued by corporations.
Although such notes are generally unsecured, the Funds may also purchase secured
commercial paper. Except as noted below with respect to variable amount master
demand notes, issues of commercial paper normally have maturities of less than
nine months and fixed rates of return. The Funds only purchase commercial paper
that meets the following criteria.

   
         Bond Funds. The Short-Term Bond Fund, the Intermediate Bond Fund and
         the Ultra Short-Term Bond Fund may purchase commercial paper consisting
         of issues rated at the time of purchase in the highest or second
         highest rating category by at least one Nationally Recognized
         Statistical Rating Organization ("NRSRO") (such as A-2 or better by
         Standard & Poor's Corporation ("S&P"), Aa or better by Moody's
         Investors Service, Inc. ("MOODY'S") or A2 or better by Fitch IBCA
         ("FITCH")) or if unrated, determined by Banc One Investment Advisors
         Corporation ("BANC ONE INVESTMENT ADVISORS") to be of comparable
         quality. The High Yield Bond Fund and the Income Bond Fund may purchase
         commercial paper in any rating category by at least one NRSRO, or, if
         unrated, determined by Banc One Investment Advisors or with respect to
         the High Yield Bond Fund, Banc One High Yield Partners, LLC (the "HIGH
         YIELD SUB-ADVISOR" or a "SUB-ADVISOR") to be of comparable quality.
    

         Municipal Bond Funds. The Municipal Bond Funds may purchase commercial
         paper consisting of issues rated at the time of purchase in the highest
         or second highest rating category by at least one NRSRO (such as A-2 or
         better by S&P, P-2 or better by Moody's or F-2 or better by Fitch) or
         if unrated, determined by Banc One Investment Advisors to be of
         comparable quality.



                                       9
<PAGE>   523

         Money Market Funds. The Money Market Funds (other than the U.S.
         Treasury Securities Money Market Fund), may purchase commercial paper
         consisting of issues rated at the time of purchase in the highest or
         second highest rating category by at least one NRSRO (such as A-2 or
         better by S&P, P-2 or better by Moody's or F-2 or better by Fitch) or
         if unrated, determined by Banc One Investment Advisors to be of
         comparable quality.

   
         Institutional Money Market Funds. The Cash Management Money Market Fund
         and the Municipal Cash Management Money Market Fund may purchase
         commercial paper rated at the time of purchase in the highest or second
         highest rating category by at least one NRSRO (such as A-2 or better by
         S&P, P-2 or better by Moody's or F-2 or better by Fitch) or if unrated,
         determined by Banc One Investment Advisors to be of comparable quality.
    

         Equity Funds. The Equity Funds may purchase commercial paper consisting
         of issues rated at the time of purchase in the highest or second
         highest rating category by at least one NRSRO (such as A-2 or better by
         S&P, P-2 or better by Moody's or F-2 or better by Fitch) or if unrated,
         determined by Banc One Investment Advisors to be of comparable quality.

COMMON STOCK

         Common stock represents a share of ownership in a company and usually
carries voting rights and earns dividends. Unlike preferred stock, dividends on
common stock are not fixed but are declared at the discretion of the issuer's
board of directors. (Equity securities such as common stock will generally
comprise no more than 10% of the High Yield Bond Fund's total assets).

CONVERTIBLE SECURITIES

         Convertible securities have characteristics similar to both fixed
income and equity securities. Convertible securities may be issued as bonds or
preferred stock. Because of the conversion feature, the market value of
convertible securities tends to move together with the market value of the
underlying stock. As a result, the Funds' selection of convertible securities is
based, to a great extent, on the potential for capital appreciation that may
exist in the underlying stock. The value of convertible securities is also
affected by prevailing interest rates, the credit quality of the issuer, and any
call provisions.

DEMAND FEATURES

         Some of the Funds may acquire securities that are subject to puts and
standby commitments ("DEMAND FEATURES") to purchase the securities at their
principal amount (usually with accrued interest) within a fixed period (usually
seven days) following a demand by the Fund. The demand feature may be issued by
the issuer of the underlying securities, a dealer in the securities or by
another third party, and may not be transferred separately from the underlying
security. The underlying securities subject to a put may be sold at any time at
market rates. The Funds expect that they will acquire puts only where the puts
are available without the payment of any direct or indirect consideration.


                                       10
<PAGE>   524

However, if advisable or necessary, a premium may be paid for put features. A
premium paid will have the effect of reducing the yield otherwise payable on the
underlying security.

         Under a "STAND-BY COMMITMENT," a dealer would agree to purchase, at a
Fund's option, specified municipal securities at a specified price. A Fund will
acquire these commitments solely to facilitate portfolio liquidity and does not
intend to exercise its rights thereunder for trading purposes. Stand-by
commitments may also be referred to as put options. A Fund will generally limit
its investments in stand-by commitments to 25% of its total assets.

         The purpose of engaging in transactions involving puts is to maintain
flexibility and liquidity to permit the Fund to meet redemption requests and
remain as fully invested as possible.

FOREIGN INVESTMENTS

   
         Some of the Funds may invest in certain obligations or securities of
foreign issuers. Possible investments include equity securities of foreign
entities, obligations of foreign branches of U.S. banks and of foreign banks,
including, without limitation, Eurodollar Certificates of Deposit, Eurodollar
Time Deposits, Eurodollar Banker's Acceptances, Canadian Time Deposits and
Yankee Certificates of Deposits, and investments in Canadian Commercial Paper,
and Europaper. Securities of foreign issuers may include sponsored and
unsponsored American Depository Receipts ("ADRs"). Sponsored ADRs are listed on
the New York Stock Exchange; unsponsored ADRs are not. Therefore, there may be
less information available about the issuers of unsponsored ADRs than the
issuers of sponsored ADRs. Unsponsored ADRs are restricted securities.

         RISK FACTORS OF FOREIGN INVESTMENTS

         Political and Exchange Risks. Foreign investments may subject a Fund to
         investment risks that differ in some respects from those related to
         investments in obligations of U.S. domestic issuers. Such risks include
         future adverse political and economic developments, the possible
         imposition of withholding taxes on interest or other income, possible
         seizure, nationalization or expropriation of foreign deposits, the
         possible establishment of exchange controls or taxation at the source,
         greater fluctuations in value due to changes in exchange rates, or the
         adoption of other foreign governmental restrictions which might
         adversely affect the payment of principal and interest on such
         obligations.

         Higher Transaction Costs. Foreign investments may entail higher
         custodial fees and sales commissions than domestic investments.

         Accounting and Regulatory Differences. Foreign issuers of securities or
         obligations are often subject to accounting treatment and engage in
         business practices different from those respecting domestic issuers of
         similar securities or obligations. Foreign branches of U.S. banks and
         foreign banks are not regulated 
    

                                       11
<PAGE>   525

         by U.S. banking authorities and may be subject to less stringent
         reserve requirements than those applicable to domestic branches of U.S.
         banks. In addition, foreign banks generally are not bound by the
         accounting, auditing, and financial reporting standards comparable to
         those applicable to U.S. banks.

   
         Currency Risk. On January 1, 1999, the European Economic and Monetary
         Union introduced the "Euro." The Euro will serve as a common currency
         for participating European nations. All stocks issued by corporations
         located in those nations will be denominated in Euros. In addition,
         outstanding shares will be redenominated in Euros. All government bonds
         issued by participating nations will be in Euros , and outstanding
         government bonds will be redenominated in Euros. The introduction of
         the Euro presents some uncertainties, such as the adequacy of newly
         created accounting, clearing, settlement, and payment systems for the
         new currency. These uncertainties could adversely affect the value of
         the foreign securities held by the Funds.

         A substantial portion of the securities of the International Funds will
         be denominated in foreign currencies. In addition, the International
         Funds may hold funds in foreign currencies. Thus, the value of an
         International Fund's shares will be affected by changes in currency
         exchange rates. The value of the Fund's investments denominated in
         foreign currencies and any funds held in foreign currencies will depend
         on the relative strength of those currencies and the U.S. dollar, and
         the Funds may be affected favorably or unfavorably by exchange control
         regulations or changes in exchange rates between foreign currencies and
         the U.S. dollar. Changes in the foreign currency exchange rates also
         may affect the value of dividends and interest earned, gains and losses
         realized on the sale of securities and net investment income and gains,
         if any, to be distributed to Shareholders by a Fund. The exchange rates
         between the U.S. dollar and other currencies are determined by the
         forces of supply and demand in foreign exchange markets. Accordingly,
         the ability of a Fund to achieve its investment objective may depend,
         to a certain extent, on exchange rate movements.

           By investing in foreign securities, the International Funds attempt
to take advantage of differences between both economic trends and the
performance of securities markets in the various countries, regions and
geographic areas as prescribed by a Fund's investment objective and policies.
During certain periods the investment return on securities in some or all
countries may exceed the return on similar investments in the United States,
while at other times the investment return may be less than that on similar U.S.
securities. Shares of the International Funds, when included in appropriate
amounts in a portfolio otherwise consisting of domestic equity and debt
securities, will provide a source of increased diversification.

         The International Funds seek increased diversification by combining
securities from various countries and geographic areas that offer different
investment opportunities and are affected by different economic trends.
    

                                       12
<PAGE>   526

   
         -  The international investments of the International Equity Index Fund
            may reduce the effect that events in any one country or geographic
            area will have on its investment holdings. Of course, negative
            movement by one of the Fund's investments in one foreign market
            represented in its portfolio may offset potential gains from the
            Fund's investments in another country's markets.

         -  The Diversified International Fund invests primarily in the
            securities of companies located in Europe, Asia and Latin America.
            The Fund may also invest in other regions and countries that present
            attractive investment opportunities, including developing countries.
            Because the Fund may invest over 25% of its total assets in a single
            country, political and economic developments in that country will
            have a greater impact on the performance of the Fund than would be
            the case if the Fund were more widely diversified.

         LIMITATIONS ON THE USE OF FOREIGN INVESTMENTS. Except for the
International Funds, investments in all types of foreign obligations or
securities will not exceed 25% of the net assets of the Funds that may invest in
such securities .
    

FOREIGN CURRENCY TRANSACTIONS

   
         The International Funds may engage in various strategies to hedge
against interest rate and currency risks. These strategies may consist of use of
any of the following, some of which also have been described above: options on
Fund positions or currencies, financial and currency futures, options on such
futures, forward foreign currency transactions, forward rate agreements and
interest rate and currency swaps, caps and floors. The International Funds may
engage in such transactions in both U.S. and non-U.S. markets. To the extent a
Fund enters into such transactions in markets other than in the United States, a
Fund may be subject to certain currency, settlement, liquidity, trading and
other risks similar to those described above with respect to the Fund's
investments in foreign securities. The International Funds may enter into such
transactions only in connection with hedging strategies.

         While a Fund's use of hedging strategies is intended to reduce the
volatility of the net asset value of Fund shares, the net asset value of the
Fund will fluctuate. There can be no assurance that a Fund's hedging
transactions will be effective. Furthermore, a Fund may only engage in hedging
activities from time to time and may not necessarily be engaging in hedging
activities when movements in interest rates or currency exchange rates occur.
    


                                       13
<PAGE>   527

   
         The International Funds are authorized to deal in forward foreign
exchange between currencies of the different countries in which the Fund will
invest and multi-national currency units as a hedge against possible variations
in the foreign exchange rate between these currencies. This is accomplished
through contractual agreements entered into in the interbank market to purchase
or sell one specified currency for another currency at a specified future date
(up to one year) and price at the time of the contract. Each International
Fund's dealings in forward foreign exchange will be limited to hedging involving
either specific transactions or portfolio positions.

         Transaction Hedging. When the International Funds engage in transaction
hedging, they enter into foreign currency transactions with respect to specific
receivables or payables of the Fund generally arising in connection with the
purchase or sale of its portfolio securities. The International Funds will
engage in transaction hedging when they desire to "lock in" the U.S. dollar
price of a security it has agreed to purchase or sell, or the U.S. dollar
equivalent of a dividend or interest payment in a foreign currency. By
transaction hedging, the International Funds will attempt to protect themselves
against a possible loss resulting from an adverse change in the relationship
between the U.S. dollar and the applicable foreign currency during the period
between the date on which the security is purchased or sold, or on which the
dividend or interest payment is declared, and the date on which such payments
are made or received.

         The International Funds may purchase or sell a foreign currency on a
spot (or cash) basis at the prevailing spot rate in connection with the
settlement of transactions in portfolio securities denominated in that foreign
currency. The International Funds may also enter into contracts to purchase or
sell foreign currencies at a future date ("FORWARD CONTRACTS"). Although there
is no current intention to do so, the International Funds reserve the right to
purchase and sell foreign currency futures contracts traded in the United States
and subject to regulation by the CFTC.

         For transaction hedging purposes the International Funds may also
purchase U.S. exchange-listed call and put options on foreign currency futures
contracts and on foreign currencies. A put option on a futures contract gives a
Fund the right to assume a short position in the futures contract until
expiration of the option. A put option 
    


                                       14
<PAGE>   528

   
on currency gives a Fund the right to sell a currency at an exercise price until
the expiration of the option. A call option on a futures contract gives a Fund
the right to assume a long position in the futures contract until the expiration
of the option. A call option on currency gives a Fund the right to purchase a
currency at the exercise price until the expiration of the option.

         POSITION HEDGING. When engaging in position hedging, the International
Funds will enter into foreign currency exchange transactions to protect against
a decline in the values of the foreign currencies in which their portfolio
securities are denominated (or an increase in the value of currency for
securities which Banc One Investment Advisors or , in the case of the
International Equity Index Fund, Independence International Associates, Inc.
(the "INTERNATIONAL SUB-ADVISOR" or a "SUB-ADVISOR") expects to purchase, when
the Fund holds cash or short-term investments). In connection with the position
hedging, a Fund may purchase or sell foreign currency forward contracts or
foreign currency on a spot basis. The International Funds may purchase U.S.
exchange-listed put or call options on foreign currency and foreign currency
futures contracts and buy or sell foreign currency futures contracts traded in
the United States and subject to regulation by the CFTC, although the
International Funds have no current intention to do so.
    

         The precise matching of the amounts of foreign currency exchange
transactions and the value of the portfolio securities involved will not
generally be possible since the future value of such securities in foreign
currencies will change as a consequence of market movements in the value of
those securities between the dates the currency exchange transactions are
entered into and the dates they mature.

   
         It is impossible to forecast with precision the market value of
portfolio securities at the expiration or maturity of a forward contract or
futures contract. Accordingly, the International Funds may have to purchase
additional foreign currency on the spot market (and bear the expense of such
purchase) if the market value of the security or securities being hedged is less
than the amount of foreign currency a Fund is obligated to deliver and if a
decision is made to sell the security or securities and make delivery of the
foreign currency. Conversely, it may be necessary to sell on the spot market
some of the foreign currency received upon the sale of the portfolio security or
securities if the market value of such security or securities exceeds the amount
of foreign currency the Fund is obligated to deliver.

         Although the International Funds have no current intention to do so,
the International Funds may write covered call options on up to 100% of the
currencies in its portfolio to offset some of the costs of hedging against
fluctuations in currency exchange rates.

         Transaction and position hedging do not eliminate fluctuations in the
underlying prices of the securities which the International Funds own or expect
to purchase or sell. They simply seek to maintain an investment portfolio that
is relatively neutral to fluctuations in the value of the U.S. dollar relative
to major foreign currencies 
    


                                       15
<PAGE>   529

   
and establish a rate of exchange which one can achieve at some future point in
time. Additionally, although these techniques tend to minimize the risk of loss
due to a decline in the value of the hedged currency, they tend to limit any
potential gain which might result from the increase in the value of such
currency. Moreover, it may not be possible for a Fund to hedge against a
devaluation that is so generally anticipated that the Fund is not able to
contract to sell the currency at a price above the anticipated devaluation
level.

         FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. The International Funds,
for hedging purposes only, may purchase forward foreign currency exchange
contracts, which involve an obligation to purchase or sell a specific currency
at a future date, which may be any fixed number of days from the date of the
contract as agreed by the parties, at a price set at the time of the contract.
In the case of a cancellable forward contract, the holder has the unilateral
right to cancel the contract at maturity by paying a specified fee. The
contracts are traded in the interbank market conducted directly between currency
traders (usually large commercial banks) and their customers. A forward contract
generally has no deposit requirement, and no commissions are charged at any
stage for trades.
    

         The maturity date of a forward contract may be any fixed number of days
from the date of the contract agreed upon by the parties, rather than a
predetermined date in a given month. Forward contracts may be in any amounts
agreed upon by the parties rather than predetermined amounts. Also, forward
foreign exchange contracts are entered into directly between currency traders so
that no intermediary is required. A forward contract generally requires no
margin or other deposit.

   
         At the maturity of a forward contract, a Fund may either accept or make
delivery of the currency specified in the contract, or at or prior to maturity
enter into a closing transaction involving the purchase or sale of an offsetting
contract. Closing transactions with respect to forward contracts are usually
effected with the currency trader who is a party to the original forward
contract. Closing transactions with respect to futures contracts are effected on
a commodities exchange; a clearing corporation associated with the exchange
assumes responsibility for closing out such contracts.

         FOREIGN CURRENCY FUTURES CONTRACTS. The International Funds may
purchase foreign currency futures contracts. Foreign currency futures contracts
traded in the United States are designed by and traded on exchanges regulated by
the CFTC, such as the New York Mercantile Exchange. A Fund will enter into
foreign currency futures contracts solely for bona fide hedging or other
appropriate risk management purposes as defined in CFTC regulations.
    

         When a Fund purchases or sells a futures contract, it is required to
deposit with its custodian an amount of cash or U.S. Treasury bills known as
"initial margin." The nature of initial margin is different from that of margin
in security transactions in that it does not involve borrowing money to finance
transactions.



                                       16
<PAGE>   530

         Rather, initial margin is similar to a performance bond or good faith
deposit that is returned to the Fund upon termination of the contract, assuming
the Fund satisfies its contractual obligation.

         Subsequent payments to and from the broker occur on a daily basis in a
process known as "marking to market." These payments are called "variation
margin" and are made as the value of the underlying futures contract fluctuates.
For example, when a Fund sells a futures contract and the price of the
underlying currency rises above the delivery price, the Fund's position declines
in value. The Fund then pays a broker a variation margin payment equal to the
difference between the delivery price of the futures contract and the market
price of the currency underlying the futures contract. Conversely, if the price
of the underlying currency falls below the delivery price of the contract, the
Fund's futures position increases in value. The broker then must make a
variation margin payment equal to the difference between the delivery price of
the futures contract and the market price of the currency underlying the futures
contract.

         When a Fund terminates a position in a futures contract, a final
determination of variation margin is made, additional cash is paid by or to the
Fund, and the Fund realizes a loss or gain. Such closing transactions involve
additional commission costs.

   
         In addition to the margin requirements discussed above, transactions in
currency futures contracts may involve the segregation of funds pursuant to
requirements imposed by the Securities and Exchange Commission (the "SEC").
Under those requirements, where a Fund has a long position in a futures or
forward contract, it may be required to establish a segregated account (not with
a futures commission merchant or broker) containing cash or certain liquid
assets equal to the purchase price of the contract (less any margin on deposit).
For a short position in futures or forward contracts held by a Fund, those
requirements may mandate the establishment of a segregated account (not with a
futures commission merchant or broker) with cash or certain liquid assets that,
when added to the amounts deposited as margin, equal the market value of the
instruments or currency underlying the futures or forward contracts (but are not
less than the price at which the short positions were established). However,
segregation of assets is not required if the Fund "covers" a long position. For
example, instead of segregating assets, a Fund, when holding a long position in
a futures or forward contract, could purchase a put option on the same futures
or forward contract with a strike price as high or higher than the price of the
contract held by the Fund. In addition, where a Fund takes short positions, or
engages in sales of call options, it need not segregate assets if it "covers"
these positions. For example, where a Fund holds a short position in a futures
or forward contract, it may cover by owning the instruments or currency
underlying the contract. A Fund may also cover such a position by holding a call
option permitting it to purchase the same futures or forward contract at a price
no higher than the price at which the short position was established. Where a
Fund sells a call option on a futures or forward contract, it may cover either
by entering into a long position in the same contract at a price no higher than
the strike price of the call option or by owning the instruments or currency
underlying the futures or forward contract. The Fund could also cover this
position by holding a separate call option permitting it to purchase the same
futures or 
    


                                       17
<PAGE>   531

forward contract at a price no higher than the strike price of the call option
sold by the Fund.

         At the maturity of a futures contract, the Fund may either accept or
make delivery of the currency specified in the contract, or at or prior to
maturity enter into a closing transaction involving the purchase or sale of an
offsetting contract. Closing transactions with respect to forward contracts are
usually effected with the currency trader who is a party to the original forward
contract. Closing transactions with respect to futures contracts are effected on
a commodities exchange; a clearing corporation associated with the exchange
assumes responsibility for closing out such contracts.

   
         Positions in the foreign currency futures contracts may be closed out
only on an exchange or board of trade which provides a secondary market in such
contracts. Although the International Funds intend to purchase or sell foreign
currency futures contracts only on exchanges or boards of trade where there
appears to be an active secondary market, there is no assurance that a secondary
market on an exchange or board of trade will exist for any particular contract
or at any particular time. In such event, it may not be possible to close a
futures position and, in the event of adverse price movements, the Fund would
continue to be required to make daily cash payments of variation margin.

         FOREIGN CURRENCY OPTIONS. The International Funds may purchase U.S.
exchange-listed call and put options on foreign currencies. Such options on
foreign currencies operate similarly to options on securities. Options on
foreign currencies are affected by all of those factors which influence foreign
exchange rates and investments generally.

         A Fund is authorized to purchase or sell listed foreign currency
options, and currency swap contracts as a short or long hedge against possible
variations in foreign exchange rates. Such transactions may be effected with
respect to hedges on non-U.S. dollar denominated securities (including
securities denominated in the ECU) owned by the Fund, sold by the Fund but not
yet delivered, committed or anticipated to be purchased by the Fund, or in
transaction or cross-hedging strategies. As an illustration, a Fund may use such
techniques to hedge the stated value in U.S. dollars of an investment in a
Japanese yen-dominated security. In such circumstances, for example, the Fund
may purchase a foreign currency put option enabling it to sell a specified
amount of yen for dollars at a specified price by a future date. To the extent
the hedge is successful, a loss in the value of the dollar relative to the yen
will tend to be offset by an increase in the value of the put option. To offset,
in whole or in part, the cost of acquiring such a put option, the Fund also may
sell a call option which, if exercised, requires it to sell a specified amount
of yen for dollars at a specified price by a future date (a technique called a
"straddle"). By selling such call option in this illustration, the Fund gives up
on the opportunity to profit without limit from increases in the relative value
of the yen to the dollar.
    

         Certain differences exist between these foreign currency hedging
instruments. Foreign currency options provide the holder thereof the right to
buy or to sell a currency 


                                       18
<PAGE>   532

   
at a fixed price on a future date. Listed options are third-party contracts
(i.e., performance of the parties' obligations is guaranteed by an exchange or
clearing corporation) which are issued by a clearing corporation, traded on an
exchange and have standardized strike prices and expiration dates. OTC options
are two-party contracts and have negotiated strike prices and expiration dates.
Options on futures contracts are traded on boards of trade or futures exchanges.
Currency swap contacts are negotiated two party agreements entered into in the
interbank market whereby the parties exchange two foreign currencies at the
inception of the contract and agree to reverse the exchange at a specified
future time and at a specified exchange rate. The International Funds will not
speculate in foreign currency options, futures or related options or currency
swap contracts. Accordingly, the International Funds will not hedge a currency
substantially in excess (as determined by Banc One Investment Advisors or the
International Sub-Advisor, in the case of the International Equity Index Fund)
of the market value of the securities denominated in such currency which they
own, the expected acquisition price of securities which they have committed or
anticipate to purchase which are denominated in such currency, and, in the cases
of securities which have been sold by a Fund but not yet delivered, the proceeds
thereof in its denominated currency. Further, the International Funds will
segregate, at its Custodians, U.S. government or other high quality securities
having a market value representing any subsequent net decrease in the market
value of such hedged positions including net positions with respect to
cross-currency hedges. The International Funds may not incur potential net
liabilities with respect to currency and securities positions, including net
liabilities with respect to cross-currency hedges, of more than 33 1/3% of its
total assets from foreign currency options, futures, related options and forward
currency transactions.
    

         The value of a foreign currency option is dependent upon the value of
the foreign currency and the U.S. dollar, and may have no relationship to the
investment merits of a foreign security. Because foreign currency transactions
occurring in the interbank market involve substantially larger amounts than
those that may be involved in the use of foreign currency options, investors may
be disadvantaged by having to deal in an odd lot market (generally consisting of
transactions of less than $1 million) for the underlying foreign currencies at
prices that are less favorable than for round lots.

         There is no systematic reporting of last sale information for foreign
currencies and there is no regulatory requirement that quotations available
through dealer or other market sources be firm or revised on a timely basis.
Available quotation information is generally representative of very large
transactions in the interbank market and thus may not reflect relatively smaller
transactions (less than $1 million) where rates may be less favorable. The
interbank market in foreign currencies is a global, around-the-clock market. To
the extent that the U.S. options markets are closed while the markets for the
underlying currencies remain open, significant price and rate movements may take
place in the underlying markets that cannot be reflected in the options market.

         FOREIGN CURRENCY CONVERSION. Although foreign exchange dealers do not
charge a fee for currency conversion, they do realize a profit based on the
difference (the "spread") between prices at which they are buying and selling
various currencies. Thus, a 


                                       19
<PAGE>   533

dealer may offer to sell a foreign currency to a Fund at one rate, while
offering a lesser rate of exchange should the Fund desire to resell that
currency to the dealer.

   
         OTHER FOREIGN CURRENCY HEDGING STRATEGIES. New options and futures
contracts and other financial products, and various combinations thereof,
continue to be developed, and the International Funds may invest in any such
options, contracts and products as may be developed to the extent consistent
with the Fund's investment objective and the regulatory requirements applicable
to investment companies, and subject to the supervision of the Trust's Board of
Trustees.
    

         RISK FACTORS IN HEDGING TRANSACTIONS

         Imperfect Correlation. Foreign currency hedging transactions present
         certain risks. In particular, the variable degree of correlation
         between price movements of the instruments used in hedging strategies
         and price movements in the security being hedged creates the
         possibility that losses on the hedge may be greater than gains in the
         value of the Fund's securities.

         Liquidity. In addition, these instruments may not be liquid in all
         circumstances. As a result, in volatile markets, the Fund may not be
         able to dispose of or offset a transaction without incurring losses.
         Although the contemplated use of hedging instruments should tend to
         reduce the risk of loss due to a decline in the value of the hedged
         security, at the same time the use of these instruments could tend to
         limit any potential gain which might result from an increase in the
         value of such security.

   
         Judgement of the Advisor and the International Sub-Advisor. Successful
         use of hedging instruments by the International Funds is subject to the
         ability of the Banc One Investment Advisors and/or the International
         Sub-Adviser, in the case of the International Equity Index Fund to
         predict correctly movements in the direction of interest and currency
         rates and other factors affecting markets for securities. If the
         expectations of Banc One Investment Advisors or the International
         Sub-Advisor are not met, a Fund would be in a worse position than if a
         hedging strategy had not been pursued. For example, if a Fund has
         hedged against the possibility of an increase in interest rates which
         would adversely affect the price of securities in its portfolio and the
         price of such securities increases instead, the Fund will lose part or
         all of the benefit of the increased value of its securities because it
         will have offsetting losses in its hedging positions. In addition, when
         hedging with instruments that require variation margin payments, if the
         Fund has insufficient cash to meet daily variation margin requirements,
         it may have to sell securities to meet such requirements. Such sales of
         securities may, but will not necessarily, be at increased prices which
         reflect the rising market. Thus, a Fund may have to sell securities at
         a time when it is disadvantageous to do so.
    

FUTURES AND OPTIONS TRADING

                                       20
<PAGE>   534

         Some of the Funds may enter into futures contracts, options, options on
futures contracts and stock index futures contracts and options thereon for the
purposes of remaining fully invested, reducing transaction costs, or managing
interest rate risk.

         FUTURES CONTRACTS

   
         Futures contracts provide for the future sale by one party and purchase
by another party of a specified amount of a specific security, class of
securities, or an index at a specified future time and at a specified price. A
stock index futures contract is a bilateral agreement pursuant to which two
parties agree to take or make delivery of an amount of cash equal to a specified
dollar amount times the difference between the stock index value at the close of
trading of the contracts and the price at which the futures contract is
originally struck. Futures contracts which are standardized as to maturity date
and underlying financial instrument are traded on national futures exchanges.
Futures exchanges and trading are regulated under the Commodity Exchange Act by
the Commodity Futures Trading Commission ("CFTC"), a U.S. government agency.
    

         Although most futures contracts by their terms call for actual delivery
and acceptance of the underlying securities, in most cases the contracts are
closed out before the settlement date without the making or taking of delivery.
Closing out an open futures position is done by taking an opposite position
("buying" a contract which has previously been "sold," or "selling" a contract
previously "purchased") in an identical contract to terminate the position. The
acquisition of put and call options on futures contracts will, respectively,
give a Fund the right (but not the obligation), for a specified price, to sell
or to purchase the underlying futures contract, upon exercise of the option, at
any time during the option period. Brokerage commissions are incurred when a
futures contract is bought or sold.

         When making futures trades, the Funds are required to make a good faith
margin deposit in cash or government securities with a broker or custodian to
initiate and maintain open positions in futures contracts. A margin deposit is
intended to assure completion of the contract (delivery or acceptance of the
underlying security) if it is not terminated prior to the specified delivery
date. Minimal initial margin requirements are established by the futures
exchange and may be changed. Brokers may establish deposit requirements which
are higher than the exchange minimums. Initial margin deposits on futures
contracts are customarily set at levels much lower than the prices at which the
underlying securities are purchased and sold, typically ranging upward from less
than 5% of the value of the contract being traded.

         After a futures contract position is opened, the value of the contract
is marked to market daily. If the futures contract price changes to the extent
that the margin on deposit does not satisfy margin requirements, payment of
additional "variation" margin will be required. Conversely, change in the
contract value may reduce the required margin, resulting in a repayment of
excess margin to the contract holder. Variation margin payments are made to and
from the futures broker for as long as the contract remains open. The Funds
expect to earn interest income on their margin deposits.



                                       21
<PAGE>   535

         Traders in futures contracts may be broadly classified as either
"hedgers" or "speculators." Hedgers use the futures markets primarily to offset
unfavorable changes in the value of securities otherwise held for investment
purposes or expected to be acquired by them. Speculators are less inclined to
own the securities underlying the futures contracts which they trade, and use
futures contracts with the expectation of realizing profits from fluctuations in
the prices of underlying securities. The Funds intend to enter into futures
contracts, options on futures contracts, index futures and options thereon that
are traded on an exchange regulated by the CFTC if, to the extent that such
futures and options are not for "bona fide hedging purposes" (as defined by the
CFTC), the aggregate initial margin and premiums on such positions (excluding
the amount by which options are in the money) do not exceed 5% of the Fund's
total assets at current value. A Fund, however, may invest more than such amount
for bona fide hedging purposes, and also may invest more than such amount if it
obtains authority to do so from the CFTC without rendering the fund a commodity
pool operator or adversely affecting its status as an investment company for
federal securities laws.

         A Fund may buy and sell futures contracts and related options to manage
its exposure to changing interest rates and security prices. When interest rates
are expected to rise or market values of portfolio securities are expected to
fall, a Fund can seek through the sale of futures contracts to offset a decline
in the value of its portfolio securities. When interest rates are expected to
fall or market values are expected to rise, a Fund, through the purchase of such
contracts, can attempt to secure better rates or prices for the Fund than might
later be available in the market when it effects anticipated purchases.

         Although techniques other than the sale and purchase of futures
contracts could be used to control the Funds' exposure to market fluctuations,
the use of futures contracts may be a more effective means of managing this
exposure. While the Funds will incur commission expenses in both opening and
closing out futures positions, these costs may be lower than transaction costs
that would be incurred in the purchase and sale of the underlying securities.

         A Fund's ability to effectively utilize futures trading depends on
several factors. First, it is possible that there will not be a perfect price
correlation between the futures contracts and their underlying reference
security or index. Second, it is possible that a lack of liquidity for futures
contracts could exist in the secondary market, resulting in an inability to
close a futures position prior to its maturity date. Third, the purchase of a
futures contract involves the risk that a Fund could lose more than the original
margin deposit required to initiate a futures transaction.

         LIMITATIONS ON THE USE OF FUTURES CONTRACTS

         None of the Funds will enter into futures contract transactions for
purposes other than bona fide hedging purposes to the extent that, immediately
thereafter, the sum of its initial margin deposits and premiums on open
contracts exceeds 5% of the market value of the respective Fund's total assets.
The Funds of Funds will not enter into futures contract transactions, however,
the One Group mutual funds in which they invest may do


                                       22
<PAGE>   536

so as described herein. In addition, none of the Equity Funds will enter into
futures contracts to the extent that the value of the futures contracts held
would exceed 25% of the respective Fund's total assets.

         The Funds have undertaken to restrict their futures contract trading as
follows: first, the Funds will not engage in transactions in futures contracts
for speculative purposes; second, the Funds will not market themselves to the
public as commodity pools or otherwise as vehicles for trading in the
commodities futures or commodity options markets; third, the Funds will disclose
to all prospective Shareholders the purpose of and limitations on their
commodity futures trading; fourth, the Funds will submit to the CFTC special
calls for information. Accordingly, registration as a commodities pool operator
with the CFTC is not required.

   

         In addition to the margin restrictions discussed above, transactions in
futures contracts may involve the segregation of funds pursuant to requirements
imposed by the SEC. Under those requirements, where a Fund has a long position
in a futures contract, it may be required to establish a segregated account (not
with a futures commission merchant or broker) containing cash or certain liquid
assets equal to the purchase price of the contract (less any margin on deposit).
For a short position in futures or forward contracts held by a Fund, those
requirements may mandate the establishment of a segregated account (not with a
futures commission merchant or broker) with cash or certain liquid assets that,
when added to the amounts deposited as margin, equal the market value of the
instruments underlying the futures contracts (but are not less than the price at
which the short positions were established). However, segregation of assets is
not required if a Fund "covers" a long position. For example, instead of
segregating assets, a Fund, when holding a long position in a futures contract,
could purchase a put option on the same futures contract with a strike price as
high or higher than the price of the contract held by the Fund. In addition,
where a Fund takes short positions, or engages in sales of call options, it need
not segregate assets if it "covers" these positions. For example, where a Fund
holds a short position in a futures contract, it may cover by owning the
instruments underlying the contract. The Funds may also cover such a position by
holding a call option permitting it to purchase the same futures contract at a
price no higher than the price at which the short position was established.
Where a Fund sells a call option on a futures contract, it may cover either by
entering into a long position in the same contract at a price no higher than the
strike price of the call option or by owning the instruments underlying the
futures contract. A Fund could also cover this position by holding a separate
call option permitting it to purchase the same futures contract at a price no
higher than the strike price of the call option sold by the Fund. In certain
circumstances, entry into a futures contract that substantially eliminates risk
of loss and the opportunity for gain in an "appreciated financial position" will
also accelerate gain to the Funds.
    

         RISK FACTORS IN FUTURES TRANSACTIONS

                                       23
<PAGE>   537

         Liquidity. Positions in futures contracts may be closed out only on an
         exchange which provides a secondary market for such futures. However,
         there can be no assurance that a liquid secondary market will exist for
         any particular futures contract at any specific time. Thus, it may not
         be possible to close a futures position. In the event of adverse price
         movements, a Fund would continue to be required to make daily cash
         payments to maintain the required margin. In such situations, if a Fund
         has insufficient cash, it may have to sell portfolio securities to meet
         daily margin requirements at a time when it may be disadvantageous to
         do so. In addition, a Fund may be required to make delivery of the
         instruments underlying futures contracts it holds. The inability to
         close options and futures positions also could have an adverse impact
         on the ability to effectively hedge such positions. The Funds will
         minimize the risk that they will be unable to close out a futures
         contract by only entering into futures contracts which are traded on
         national futures exchanges and for which there appears to be a liquid
         secondary market.

         Risk of Loss. The risk of loss in trading futures contracts in some
         strategies can be substantial, due both to the low margin deposits
         required, and the extremely high degree of leverage involved in futures
         pricing. Because the deposit requirements in the futures markets are
         less onerous than margin requirements in the securities market, there
         may be increased participation by speculators in the futures market
         which may also cause temporary price distortions. A relatively small
         price movement in a futures contract may result in immediate and
         substantial loss (as well as gain) to the investor. For example, if at
         the time of purchase, 10% of the value of the futures contract is
         deposited as margin, a subsequent 10% decrease in the value of the
         futures contract would result in a total loss of the margin deposit,
         before any deduction for the transaction costs, if the account were
         then closed out. A 15% decrease would result in a loss equal to 150% of
         the original margin deposit if the contract were closed out. Thus, a
         purchase or sale of a futures contract may result in losses in excess
         of the amount invested in the contract. However, because the futures
         strategies engaged in by the Funds are only for risk management
         purposes, Banc One Investment Advisors and, with respect to the
         International Equity Index Fund, the International Sub-Advisor, and,
         with respect to the High Yield Bond, the High Yield Sub-Advisor do not
         believe that the Funds are subject to the risks of loss frequently
         associated with futures transactions. Each Fund would presumably have
         sustained comparable losses if, instead of the futures contract, it had
         invested in the underlying financial instrument and sold it after the
         decline.

         Correlation Risk. Utilization of futures transactions by a Fund
         involves the risk of imperfect or no correlation where the securities
         underlying futures contracts have different maturities than the
         portfolio securities being hedged. It is also possible that a Fund
         could lose money on futures contracts and also experience a decline in
         value of its portfolio securities. There is also the risk of loss by a
         Fund of margin deposits in the event of bankruptcy of a broker with
         whom the Fund has an open position in a futures contract or related
         option.



                                       24
<PAGE>   538

         Price Fluctuations. Most futures exchanges limit the amount of
         fluctuation permitted in futures contract prices during a single
         trading day. The daily limit establishes the maximum amount that the
         price of a futures contract may vary either up or down from the
         previous day's settlement price at the end of a trading session. Once
         the daily limit has been reached in a particular type of contract, no
         trades may be made on that day at a price beyond that limit. The daily
         limit governs only price movement during a particular trading day and
         therefore does not limit potential losses, because the limit may
         prevent the liquidation of unfavorable positions. Futures contract
         prices have occasionally moved to the daily limit for several
         consecutive trading days with little or no trading, thereby preventing
         prompt liquidation of futures positions and subjecting some futures
         traders to substantial losses.

         Some futures strategies, including selling futures, buying puts and
writing covered calls, may reduce a Fund's exposure to price fluctuations. Other
strategies, including buying futures, and buying calls, tend to increase market
exposure. Futures and options may be combined with each other in order to adjust
the risk and return characteristics of the overall portfolio. A Fund expects to
enter into these transactions to manage a return or spread on a particular
investment or portion of its assets, to protect against any increase in the
price of securities a Fund anticipates purchasing at a later date, or for other
risk management strategies.

         OPTIONS CONTRACTS

   
         Some of the Funds may use options on securities or futures contracts as
a hedging device. An option gives the buyer of the option the right (but not the
obligation) to purchase a futures contract or security at a specified price
(also called the STRIKE price). A CALL OPTION gives the buyer the "right to
purchase" a security at a specified price (the exercise price) at any time until
a certain date (the expiration date). So long as the obligation of the writer of
a call option continues, the writer may be assigned an exercise notice by the
broker-dealer through whom such option was sold, requiring the writer to deliver
the underlying security against payment of the exercise price. This obligation
terminates upon the expiration of the call option, or such earlier time at which
the writer effects a closing purchase transaction by repurchasing an option
identical to that previously sold. To secure the writer's obligation to deliver
the underlying security in the case of a call option, subject to the rules of
the Options Clearing Corporation, a writer is required to deposit in escrow the
underlying security or other assets in accordance with such rules.

         A PUT OPTION gives the buyer the right to sell the underlying futures
contract or security. The purchase price of an option is referred to as its
"premium." The seller (or "writer") of a put option must purchase futures
contracts or securities at a strike price if the option is exercised. In the
case of a call option, the seller must sell the futures contract or security in
the underlying futures contract or security at the strike price if the option is
exercised.
    

                                       25
<PAGE>   539

   
         A NAKED OPTION is an option written by a party who does not own the
underlying futures contract or security. A COVERED OPTION is an option written
by a party who does own the underlying position. The initial purchase (sale) of
an option is an "opening transaction." In order to close out an option position,
the Fund may enter into a "closing transaction". This involves the sale
(purchase) of an option contract on the same security with the same exercise
price and expiration date as the option contract originally opened.
    

         A call option on a futures contract or security is said to be
"in-the-money" if the strike price is below current market levels and
"out-of-the-money" if the strike price is above current market levels. A put
option is "in-the-money" if the strike price is above current market levels, and
"out-of-the-money" if the strike price is below current market levels.

         Options have limited life spans, usually tied to the delivery or
settlement date of the underlying futures contract or security. Some options,
however, expire significantly in advance of such dates. An option that is
"out-of-the-money" and not offset by the time it expires becomes worthless. On
certain exchanges "in-the-money" options are automatically exercised on their
expiration date, but on others unexercised options simply become worthless after
their expiration date. Options usually trade at a premium (referred to as the
"time value" of the option) above their intrinsic value (the difference between
the market price for the underlying futures contract or equity security and the
strike price). As an option nears its expiration date, the market value and the
intrinsic value move into parity as the time value diminishes.

         Increased market volatility generally increases the value of options by
increasing the probability of favorable market swings, putting outstanding
options "in-the-money." Although purchasing options is a limited risk trading
approach, significant losses can be incurred by doing so.

         WRITING (SELLING) COVERED CALLS

         Some of the Funds may write (sell) covered call options and purchase
options to close out options previously written by the Fund. The Funds' purpose
in writing covered call options is to generate additional premium income. This
premium income will serve to enhance a Fund's total return and will reduce the
effect of any price decline of the security involved in the option. Generally,
the Funds will write covered call options on securities which, in the opinion of
Banc One Investment Advisors or the applicable Sub-Advisor, are not expected to
make any major price moves in the near future but which, over the long term, are
deemed to be attractive investments for the Fund. The Funds will write only
covered call options. This means that a Fund will only write a call option on a
security which a Fund already owns.

         Fund securities on which call options may be written will be purchased
solely on the basis of investment considerations consistent with each Fund's
investment objectives. The writing of covered call options is a conservative
investment technique believed to involve relatively little risk (in contrast to
the writing of naked options, which a Fund will not do), but capable of
enhancing the Fund's total return. When writing a covered call


                                       26
<PAGE>   540

option, a Fund, in return for the premium, gives up the opportunity for profit
from a price increase in the underlying security above the exercise price, but
conversely retains the risk of loss should the price of the security decline.
Unlike one who owns securities not subject to an option, a Fund has no control
over when it may be required to sell the underlying securities, since it may be
assigned an exercise notice at any time prior to the expiration of its
obligation as a writer. Thus, the security could be "called away" at a price
substantially below the fair market value of the security. If a call option
which a Fund has written expires, a Fund will realize a gain in the amount of
the premium; however, such gain may be offset by a decline in the market value
of the underlying security during the option period. If the call option is
exercised, a Fund will realize a gain or loss from the sale of the underlying
security. The security covering the call will be maintained in a segregated
account of the Fund's custodian. The Funds do not consider a security covered by
a call to be "pledged" as that term is used in each Fund's policy which limits
the pledging or mortgaging of its assets.

         The premium received is the market value of an option. The premium each
Fund will receive from writing a call option will reflect, among other things,
the current market price of the underlying security, the relationship of the
exercise price to such market price, the historical price volatility of the
underlying security, and the length of the option period. Once the decision to
write a call option has been made, the Fund's Advisor or Sub-Advisor, in
determining whether a particular call option should be written on a particular
security, will consider the reasonableness of the anticipated premium and the
likelihood that a liquid secondary market will exist for those options. The
premium received by a Fund for writing covered call options will be recorded as
a liability in the Fund's statement of assets and liabilities. This liability
will be adjusted daily to the option's current market value, which will be the
latest sale price at the time at which the net asset value per Share of the Fund
is computed (close of the New York Stock Exchange), or, in the absence of such
sale, the latest asked price. The liability will be extinguished upon expiration
of the option, the purchase of an identical option in the closing transaction,
or delivery of the underlying security upon the exercise of the option.

         Generally, a Fund, in order to avoid the exercise of an option sold by
it, will be able to cancel its obligation under the option by entering into a
closing purchase transaction, if available, unless selling (in the case of a
call option) or purchasing (in the case of a put option) the underlying
securities is determined to be in a Fund's best interest. A closing purchase
transaction consists of a Fund purchasing an option having the same terms as the
option sold by a Fund, and has the effect of cancelling a Fund's position as a
seller. The premium which a Fund will pay in executing a closing purchase
transaction may be higher (or lower) than the premium received when the option
was sold, depending in large part upon the relative price of the underlying
security at the time of each transaction. To the extent options sold by a Fund
are exercised and a Fund delivers securities to the holder of a call option, a
Fund's turnover rate will increase, which would cause a Fund to incur additional
brokerage expenses.

         Closing transactions will be effected in order to realize a profit on
an outstanding call option, to prevent an underlying security from being called,
or to permit the sale of the underlying security.



                                       27
<PAGE>   541

         Furthermore, effecting a closing transaction will permit a Fund to
write another call option on the underlying security with either a different
exercise price or expiration date or both. If a Fund desires to sell a
particular security from its portfolio on which it has written a call options it
will seek to effect a closing transaction prior to, or concurrently with, the
sale of the security. There is, of course, no assurance that a Fund will be able
to effect such closing transactions at a favorable price. If a Fund cannot enter
into such a transaction, it may be required to hold a security that it might
otherwise have sold, in which case it would continue to be at market risk on the
security. This could result in higher transaction costs. A Fund will pay
transaction costs in connection with the writing of options to close out
previously written options. Such transaction costs are normally higher than
those applicable to purchases and sales of portfolio securities.

         Call options written by a Fund will normally have expiration dates of
less than nine months from the date written. The exercise price of the options
may be below, equal to, or above the current market values of the underlying
securities at the time the options are written. From time to time, a Fund may
purchase an underlying security for delivery in accordance with an exercise
notice of a call option assigned to it, rather than delivering such security
from its portfolio. In such cases, additional costs will be incurred.

         A Fund will realize a profit or loss from a closing purchase
transaction if the cost of the transaction is less or more than the premium
received from the writing of the option. Because increases in the market price
of a call option will generally reflect increases in the market price of the
underlying security, any loss resulting from the repurchase of a call option is
likely to be offset in whole or in part by appreciation of the underlying
security owned by the Fund.





                                       28
<PAGE>   542

         PURCHASING CALL OPTIONS

         Certain Funds may purchase call options to hedge against an increase in
the price of securities that the Fund wants ultimately to buy. Such hedge
protection is provided during the life of the call option since the Fund, as
holder of the call option, is able to buy the underlying security at the
exercise price regardless of any increase in the underlying security's market
price. In order for a call option to be profitable, the market price of the
underlying security must rise sufficiently above the exercise price to cover the
premium and transaction costs. These costs will reduce any profit the Fund might
have realized had it bought the underlying security at the time it purchased the
call option. In the event that paying a premium for a call option, together with
a price movement in the underlying security, is such that exercise of the option
would not be profitable to the Fund, loss of the premium may be offset by a
decrease in the acquisition cost of securities by the Fund.

         PURCHASING PUT OPTIONS

         Certain Funds may also purchase put options to protect their portfolio
holdings in an underlying security against a decline in market value. Such hedge
protection is provided during the life of the put option since the Fund, as
holder of the put option, is able to sell the underlying security at the put
exercise price regardless of any decline in the underlying security's market
price. For a put option to be profitable, the market price of the underlying
security must decline sufficiently below the exercise price to cover the premium
and transaction costs. By using put options in this manner, the Fund will reduce
any profit it might otherwise have realized from appreciation of the underlying
security by the premium paid for the put option and by transaction cost.
However, any loss of premium may be offset by an increase in the value of the
Fund's securities.

         SECURED PUTS

         Certain Funds may write secured puts. For the secured put writer,
substantial depreciation in the value of the underlying security would result in
the security being "put to" the writer at the strike price of the option which
may be substantially in excess of the fair market value of the security. If a
secured put option expires unexercised, the writer realizes a gain in the amount
of the premium.

         STRADDLES AND SPREADS

         Certain Funds also may engage in straddles and spreads. In a straddle
transaction, a Fund either buys a call and a put or sells a call and a put on
the same security. In a spread, the Fund purchases and sells a call or a put.
The Fund will sell a straddle when Banc One Investment Advisors or the
applicable Sub-Advisor believes the price of a security will be stable. The Fund
will receive a premium on the sale of the put and the call. A spread permits the
Fund to make a hedged investment that the price of a security will increase or
decline.
   
    



                                       29
<PAGE>   543

         RISK FACTORS IN OPTIONS TRANSACTIONS

         Risk of Loss. When it purchases an option, a Fund runs the risk that it
         will lose its entire investment in the option in a relatively short
         period of time, unless the Fund exercises the option or enters into a
         closing sale transaction with respect to the option during the life of
         the option. If the price of the underlying security does not rise (in
         the case of a call) or fall (in the case of a put) to an extent
         sufficient to cover the option premium and transaction costs, a Fund
         will lose part or all of its investment in the option. This contrasts
         with an investment by a Fund in the underlying securities, since the
         Fund may continue to hold its investment in those securities
         notwithstanding the lack of a change in price of those securities. In
         addition, there may be imperfect or no correlation between the changes
         in market value of the securities held by the Funds and the prices of
         the options.

         Judgement of Advisor and Sub-Advisors. The successful use of the
         options strategies depends on the ability of Banc One Investment
         Advisors or the applicable Sub-Advisor to assess interest rate and
         market movements correctly and to accurately calculate the fair price
         of the option. The effective use of options also depends on a Fund's
         ability to terminate option positions at times when Banc One Investment
         Advisors or the applicable Sub-Advisor, deems it desirable to do so. A
         Fund will take an option position only if Banc One Investment Advisors
         or the applicable Sub-Advisor believes there is a liquid secondary
         market for the option, however, there is no assurance that a Fund will
         be able to effect closing transactions at any particular time or at an
         acceptable price.

         Liquidity. If a secondary trading market in options were to become
         unavailable, a Fund could no longer engage in closing transactions.
         Lack of investor interest might adversely affect the liquidity of the
         market for particular options or series of options. A marketplace may
         discontinue trading of a particular option or options generally. In
         addition, a market could become temporarily unavailable if unusual
         events, such as volume in excess of trading or clearing capability,
         were to interrupt normal market operations. A marketplace may at times
         find it necessary to impose restrictions on particular types of options
         transactions, which may limit a Fund's ability to realize its profits
         or limit its losses.
   
         Market Restrictions. Disruptions in the markets for the securities
         underlying options purchased or sold by a Fund could result in losses
         on the options. If trading is interrupted in an underlying security,
         the trading of options on that security is normally halted as well. As
         a result, a Fund as purchaser or writer of an option will be unable to
         close out its positions until option trading resumes, and it may be
         faced with losses if trading in the security reopens at a substantially
         different price. In addition, the Options Clearing Corporation ("OCC")
         or other options markets may impose exercise restrictions. If a
         prohibition on exercise is imposed at the time when trading in the
         option has also been halted, a Fund as purchaser or writer of an option
         will be locked into its position until one of the two restrictions has
         been lifted. If a prohibition on exercise remains in effect until
    

                                       30
<PAGE>   544

   
         an option owned by a Fund has expired, the Fund could lose the entire
         value of its option.

         Foreign Investment Risks. Special risks are presented by
         internationally-traded options. Because of time differences between the
         United States and the various foreign countries, and because different
         holidays are observed in different countries, foreign option markets
         may be open for trading during hours or on days when U.S. markets are
         closed. As a result, option premiums may not reflect the current prices
         of the underlying interest in the United States.
    

         LIMITATIONS ON THE USE OF OPTIONS.

         Each Fund will limit the writing of put and call options to 25% of its
net assets. Some Funds may enter into over-the-counter option transactions.
There will be an active over-the-counter market for such options which will
establish their pricing and liquidity. Broker/Dealers with whom the Trust will
enter into such option transactions shall have a minimum net worth of
$20,000,000.

GOVERNMENT SECURITIES

   
         Obligations of certain agencies and instrumentalities of the U.S.
government, such as the Government National Mortgage Association ("GINNIE MAE")
and the Export-Import Bank, are supported by the full faith and credit of the
U.S. Treasury; others, such as the Federal National Mortgage Association
("FANNIE MAE"), are supported by the right of the issuer to borrow from the
Treasury; others are supported by the discretionary authority of the U.S.
government to purchase the agency's obligations; and still others, such as the
Federal Farm Credit Banks and the Federal Home Loan Mortgage Corporation
("FREDDIE MAC") are supported only by the credit of the instrumentality. No
assurance can be given that the U.S. government would provide financial support
to U.S. government-sponsored agencies or instrumentalities if it is not
obligated to do so by law. A Fund will invest in the obligations of such
agencies or instrumentalities only when Banc One Investment Advisors or the
applicable Sub-Advisor believes that the credit risk with respect thereto is
minimal. For information on mortgage-related securities issued by certain
agencies or instrumentalities of the U.S. government, see "Investment Objectives
and Policies--Mortgage-Related Securities" in this Statement of Additional
Information.

HIGH QUALITY INVESTMENTS WITH REGARD TO THE MONEY MARKET AND INSTITUTIONAL
MONEYMARKET FUNDS
    

         The Money Market and Institutional Money Market Funds, may invest only
in obligations determined by the Fund's investment Advisor, Banc One Investment
Advisors to present minimal credit risks under guidelines adopted by the Trust's
Board of Trustees.



                                       31
<PAGE>   545

   
         The Treasury Money Market Fund, the U.S. Treasury Securities Money
Market Fund,the Treasury Only Money Market Fund, the Treasury Cash Management
Money Market Fund, and the Treasury Prime Cash Management Money Market Fund may
only invest in U.S. Treasury bills, notes and other U.S. Treasury obligations
issued or guaranteed by the U.S. government. Some of the securities held by the
Treasury Money Market Fund, the U.S. Treasury Securities Money Market Fund, and
the Treasury Cash Management Money Market Fund may be subject to repurchase
agreements.

         The Government Money Market Fund and the U.S. Government Securities
Cash Management Money Market Fund invest exclusively in securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities, some of
which may be subject to repurchase agreements.

         The Tax-Exempt Money Market Fund may invest only in obligations which,
at the time of purchase, (i) possess the highest short-term ratings from a NRSRO
or (ii) possess, in the case of multiple-rated securities, the highest
short-term ratings by at least two NRSROs; or (iii) do not possess a rating
(i.e., are unrated) but are determined by Banc One Investment Advisors to be of
comparable quality to the rated instruments eligible for purchase by the Fund
under guidelines adopted by the Board of Trustees (collectively, "FIRST TIER
SECURITIES"). Some of the securities of the Tax-Exempt Money Market Fund may be
subject to repurchase agreements.

         With regard to the Money Market Funds and the Institutional Money
Market Funds (other than the Tax-Exempt Money Market Fund), investments will be
limited to those obligations which, at the time of purchase, (i) possess one of
the two highest short-term ratings from an NRSRO in the case of single-rated
securities; or (ii) possess, in the case of multiple-rated securities, one of
the two highest short-term ratings by at least two NRSROs or (iii) do not
possess a rating (i.e., are unrated) but are determined by Banc One Investment
Advisors to be of comparable quality to the rated instruments eligible for
purchase by the Trust under guidelines adopted by the Board of Trustees
(collectively, "ELIGIBLE SECURITIES"). A security that has not received a rating
will be deemed to possess the rating assigned to an outstanding class of the
issuer's short-term debt obligations if determined by Banc One Investment
Advisors to be comparable in priority and security to the obligation selected
for purchase by the Trust.

         A security subject to a tender or demand feature will be considered an
Eligible Security only if both the demand feature and the underlying security
possess a high quality rating or, if such do not possess a rating, are
determined by Banc One Investment Advisors to be of comparable quality;
provided, however, that where the demand feature would be readily exercisable in
the event of a default in payment of principal or interest on the underlying
security, the obligation may be acquired based on the rating possessed by the
demand feature or, if the demand feature does not possess a rating, a
determination of comparable quality by Banc One Investment Advisors. A security
which at the time of issuance had a maturity exceeding 397 days but, at the time
of purchase, has a remaining maturity of 397 days or less, is not considered an
Eligible Security if it does not possess a high quality rating and the long-term
rating, if any, is not within the top three highest rating categories.
    

                                       32
<PAGE>   546

         Eligible Securities include First-Tier Securities and Second-Tier
Securities. First-Tier Securities include those that possess a rating in the
highest category, in the case of a single-rated security, or at least two
ratings in the highest rating category, in the case of multiple-rated
securities, or, if the securities do not possess a rating, are determined to be
of comparable quality by Banc One Investment Advisors pursuant to the guidelines
adopted by the Board of Trustees. Second-Tier Securities are all other Eligible
Securities.

   
         Each Money Market Fund (other than the Ohio Municipal Money Market
Fund, the Michigan Municipal Money Market Fund, and the Municipal Money Market
Fund) and Institutional Money Market Fund (other than the Tax-Exempt Money
Market Fund) will not invest more than 5% of its total assets in the First Tier
Securities of any one issuer (as defined by or permitted under Rule 2a-7). In
addition, each Fund (other than the Municipal Money Market Fund, the Ohio
Municipal Money Market Fund, the Michigan Municipal Money Market Fund and the
Tax-Exempt Money Market Fund) may not invest more than 5% of its total assets in
Second Tier Securities, with investment in the Second Tier Securities of any one
issuer further limited to the greater of 1% of the Fund's total assets or $1
million. If a percentage limitation is satisfied at the time of purchase, a
later increase in such percentage resulting from a change in the Fund's net
asset value or a subsequent change in a security's qualification as a First Tier
or Second Tier Security will not constitute a violation of the limitation. In
addition, there is no limit on the percentage of a Fund's assets that may be
invested in obligations issued or guaranteed by the U.S. government, its
agencies, or instrumentalities and, with respect to each Money Market Fund and
each Institutional Money Market Fund (other than the Treasury Only Money Market
Fund and the Treasury Prime Cash Management Money Market Fund), repurchase
agreements fully collateralized by such obligations.
    

         Under the guidelines adopted by the Trust's Board of Trustees and in
accordance with Rule 2a-7 under the 1940 Act, Banc One Investment Advisors may
be required to promptly dispose of an obligation held in a Fund's portfolio in
the event of certain developments that indicate a diminishment of the
instrument's credit quality, such as where an NRSRO downgrades an obligation
below the second highest rating category, or in the event of a default relating
to the financial condition of the issuer.

         A rating by an NRSRO may be utilized only where the NRSRO is neither
controlling, controlled by, or under common control with the issuer of, or any
issuer, guarantor, or provider of credit support for, the instrument.

HIGH YIELD/HIGH RISK SECURITIES/JUNK BONDS
   
         Some of the Funds may invest in high yield securities. High yield, high
risk bonds are securities that are generally rated below investment grade by the
primary rating agencies (BB or lower by S&P and BA or lower by Moody's). Other
terms used to describe such securities include "lower rated bonds,"
"non-investment grade bonds," "below investment grade bonds," and "junk bonds."
Generally, lower rated debt securities provide a higher yield than higher rated
debt securities of similar maturity, but are subject to a greater degree of risk
with respect to the ability of the issuer to meet its principal and interest
obligations. Issuers of high 
    

                                       33
<PAGE>   547

yield securities may not be as strong financially as those issuing higher rated
securities. These securities are regarded as predominately speculative. The
market value of high yield securities may fluctuate more than the market value
of higher rated securities, since high yield securities tend to reflect
short-term corporate and market developments to a greater extent than higher
rated securities, which fluctuate primarily in response to the general level of
interest rates, assuming that there has been no change in the fundamental
quality of such securities. The market prices of fixed income securities
generally fall when interest rates rise. Conversely, the market prices of
fixed-income securities generally rise when interest rates fall. Additional
risks of high yield securities include limited liquidity and secondary market
support. As a result, the prices of high yield securities may decline rapidly in
the event that a significant number of holders decide to sell. Changes in
expectations regarding an individual issuer, an industry or high yield
securities generally could reduce market liquidity for such securities and make
their sale by the Funds more difficult, at least in the absence of price
concessions. Reduced liquidity also could adversely affect the Funds' ability to
accurately value high yield securities. Issuers of high yield securities also
are more vulnerable to real or perceived economic changes (for instance, an
economic downturn or prolonged period of rising interest rates), political
changes or adverse developments specific to the issuer. Adverse economic,
political or other developments may impair the issuer's ability to service
principal and interest obligations, to meet projected business goals and to
obtain additional financing, particularly if the issuer is highly leveraged. In
the event of a default, the Funds would experience a reduction of their income
and could expect a decline in the market value of the defaulted securities.

         Further, proposed or yet to be proposed new laws may have a possible
negative impact on the market for high yield, high risk bonds. As an example, in
the late 1980's, legislation required federally-insured savings and loan
associations to divest their investments in high yield, high risk bonds. New
legislation, if enacted, could have a material negative effect on a Fund's net
asset value and investment practices.

         Finally, the market prices of high-yield, high risk securities
structured as zero coupon or pay-in-kind securities (as defined below) are
generally affected to a greater extent by interest rate changes and tend to be
more volatile than securities which pay interest periodically. In addition, zero
coupon, pay-in-kind and delayed interest bonds often do not pay interest until
maturity. Accordingly, such bonds may involve greater credit risks than bonds
paying interest currently. However, the Fund must recognize a computed amount of
interest income and pay dividends to shareholders even though it has received no
cash. In some instances, the Funds may have to sell securities to have
sufficient cash to pay the dividends.

         The high yield, high risk investments include the following:

   
                  Straight fixed-income debt securities. These include bonds and
                  other debt obligations which bear a fixed or variable rate of
                  interest payable at regular intervals and have a fixed or
                  resettable maturity date. The particular terms of such
                  securities vary and may include features such as call
                  provisions and sinking funds.
    

                                       34
<PAGE>   548

   
                  Zero-coupon debt securities. These bear no interest obligation
                  but are issued at a discount from their value at maturity.
                  When held to maturity, their entire return equals the
                  difference between their issue price and their maturity value.

                  Zero-fixed-coupon debt securities. These are zero-coupon debt
                  securities which convert on a specified date to
                  interest-bearing debt securities.

                  Pay-in-kind bonds. These are bonds which allow the issuer, at
                  its option, to make current interest payments on the bonds
                  either in cash or in additional bonds.

                  Private Placements. These are bonds sold directly to a small
                  number of investors, usually institutional, without
                  registration under the Securities Act of 1933

                  Convertible Securities. These are bonds or preferred stock
                  that convert to common stock.

                  Preferred Stock. These are stocks that generally pay a
                  dividend at a specified rate and which have preference over
                  common stock in the payment of dividends and in liquidation.

                  Loan Participations and Assignments. These are participations
                  in, or assignments of all or a portion of loans to
                  corporations or to governments, including governments of the
                  less developed countries ("LDC'S").
    

This foregoing list is not definitive. The prospectus and this Statement of
Additional Information list additional types of permissible investments. Such
investments may be purchased by some of the Funds even if they are classified as
non-investment grade securities.

   
INDEX INVESTING BY THE EQUITY INDEX, MARKET EXPANSION INDEX AND INTERNATIONAL
EQUITY INDEX FUNDS

         Equity Index Fund. It is anticipated that the indexing approach that
will be employed by the Equity Index Fund will be an effective method of
substantially tracking percentage changes in the S&P 500 Index (the "INDEX"). It
is a reasonable expectation that there will be a close correlation between the
Fund's performance and that of the Index in both rising and falling markets. The
Fund will attempt to achieve a correlation between the performance of its
portfolio and that of the Index of at least 0.95, without taking into account
expenses. A correlation of 1.00 would indicate perfect correlation, which would
be achieved when the Fund's net asset value, including the value of its dividend
and capital gains distributions, increases or decreases in exact proportion to
changes in the Index. The Fund's ability to correlate its performance with the
Index, however, may be affected by, among other things, changes in securities
markets, the manner in which the Index is calculated by Standard & Poor's
Corporation ("S&P") and the timing of purchases and redemptions. In the future,
the Trustees of the Trust, subject
    

                                       35
<PAGE>   549

to the approval of Shareholders, may select another index if such a standard of
comparison is deemed to be more representative of the performance of common
stocks.

   
         S&P chooses the stocks to be included in the Index largely on a
statistical basis. Inclusion of a stock in the Index in no way implies an
opinion by S&P as to its attractiveness as an investment. The Index is
determined, composed and calculated by S&P without regard to the Equity Index
Fund. S&P is neither a sponsor of, nor in any way affiliated with the Equity
Index Fund, and S&P makes no representation or warranty, expressed or implied on
the advisability of investing in the Equity Index Fund or as to the ability of
the Index to track general stock market performance, and S&P disclaims all
warranties of merchantability or fitness for a particular purpose or use with
respect to the Index or any data included therein. "S&P 500" is a service mark 
of S&P.
    

         The weights of stocks in the Index are based on each stock's relative
total market value, i.e., market price per share times the number of Shares
outstanding. Because of this weighting, approximately 50% of the Index is
currently composed of the 50 largest companies in the Index, and the Index
currently represents over 65% of the market value of all U.S. common stocks
listed on the New York Stock Exchange. Typically, companies included in the
Index are the largest and most dominant firms in their respective industries.

         Banc One Investment Advisors generally selects stocks for the Equity
Index Fund in the order of their weights in the Index beginning with the
heaviest weighted stocks. The percentage of the Equity Index Fund's assets to be
invested in each stock is approximately the same as the percentage it represents
in the Index. No attempt is made to manage the Equity Index Fund in the
traditional sense using economic, financial and market analysis. The Equity
Index Fund is managed using a computer program to determine which stocks are to
be purchased and sold to replicate the Index to the extent feasible. From time
to time, administrative adjustments may be made in the Fund because of changes
in the composition of the Index, but such changes should be infrequent.

   
         Market Expansion Index Fund. The Market Expansion Index Fund invests in
a representative sampling of stocks of medium-sized and small U.S. cmpanies that
are included in the Standard & Poor's SmallCap 600 Index and the Standard &
Poor's MidCap 400 Index (the "INDICES") and which trade on the New York and
American Stock Exchanges as well as over-the-counter stocks that are part of the
National Market System. It is anticipated that the indexing approach that will
be employed by the Market Expansion Index Fund will be an effective method of
substantially tracking percentage changes in the Indices. Small capitalization
companies are also added to the Fund in equal weightings according to an
analysis of the industry diversification of the combined Indices. It is a
reasonable expectation that there will be a close correlation between the Fund's
performance and that of the combined Indices in both rising and falling markets.
The Fund will attempt to achieve a correlation between the performance of its
portfolio and that of the combined Indices of at least 0.95, without taking into
account expenses. A correlation of 1.00 would indicate perfect correlation,
which would be achieved when the Fund's net asset value, including the value of
its dividend and capital gains distributions, increases or decreases in exact
proportion to changes in the combined Indices. The 
    

                                       36
<PAGE>   550

   
Fund's ability to correlate its performance with the combined Indices, however,
may be affected by, among other things, changes in securities markets, the
manner in which the Indices are calculated by S&P and the timing of purchases
and redemptions. In the future, the Trustees of the Trust, subject to the
approval of Shareholders, may select other indices if such a standard of
comparison is deemed to be more representative of the performance of common
stocks.

S&P chooses the stocks to be included in the Indices largely on a statistical
basis. Inclusion of a stock in the Indices in no way implies an opinion by S&P
as to its attractiveness as an investment. The Indices are determined, composed
and calculated by S&P without regard to the Market Expansion Index Fund. S&P is
neither a sponsor of, nor in any way affiliated with the Market Expansion Index
Fund, and S&P makes no representation or warranty, expressed or implied on the
advisability of investing in the Market Expansion Index Fund or as to the
ability of the Indices to track general stock market performance, and S&P
disclaims all warranties of merchantability or fitness for a particular purpose
or use with respect to the Indices or any data included therein. "S&P SmallCap
600" and "S&P MidCap 400" are registered service marks of S&P.

         Banc One Investment Advisors generally selects stocks for the Market
Expansion Index Fund based on both capitalization weightings in the Indices and
industry representation.

         International Equity Index Fund. It is anticipated that the indexing
approach that will be employed by the International Equity Index Fund will be an
effective method of substantially tracking percentage changes in the Gross
Domestic Product ("GDP") weighted MSCI EAFE Index (the "INTERNATIONAL INDEX").
The Fund will attempt to achieve a correlation between the performance of its
portfolio and that of the International Index of at least 0.95, without taking
into account expenses. It is a reasonable expectation that there will be a close
correlation between the Fund's performance and that of the International Index
in both rising and falling markets. A correlation of 1.00 would indicate perfect
correlation, which would be achieved when the Fund's net asset value, including
the value of its dividend and capital gains distributions, increases or
decreases in exact proportion to changes in the International Index. The Fund's
ability to correlate its performance with the International Index, however, may
be affected by, among other things, changes in securities markets, the manner in
which the International Index is calculated by Morgan Stanley Capital
International ("MSCI") and the timing of purchases and redemptions. In the
future, the Trustees of the Trust, subject to the approval of Shareholders, may
select another index if such a standard of comparison is deemed to be more
representative of the performance of common stocks.
    

         MSCI computes and publishes the International Index. MSCI also computes
the country weights which are established based on annual GDP data. Gross
Domestic Product is defined as a country's Gross National Product, or total
output of goods and services, adjusted by the following two factors: net labor
income (labor income of domestic residents working abroad less labor income of
foreigners working domestically) plus net interest income (interest income
earned from foreign investments less interest 


                                       37
<PAGE>   551

income earned from domestic investments by foreigners). Country weights are thus
established in proportion to the size of their economies as measured by Gross
Domestic Product, which results in a more uniform distribution of capital across
the EAFE markets than if capitalization weights were used as the basis. The
country weights within the International Index are systematically rebalanced
annually to the most recent GDP weights.

         MSCI chooses the stocks to be included in the International Index
largely on a statistical basis. Inclusion of a stock in the International Index
in no way implies an opinion by MSCI as to its attractiveness as an investment.
The International Index is determined, composed and calculated by MSCI without
regard to the International Equity Index Fund. MSCI is neither a sponsor of, nor
in any way affiliated with the International Equity Index Fund, and MSCI makes
no representation or warranty, expressed or implied on the advisability of
investing in the International Equity Index Fund or as to the ability of the
International Index to track general stock market performance, and MSCI
disclaims all warranties of merchantability or fitness for a particular purpose
or use with respect to the International Index or any data included therein.
"MSCI EAFE Index" is a service mark of MSCI.

INVESTMENT COMPANY SECURITIES

         Some of the Funds may invest up to 5% of their total assets in the
securities of any one investment company (another mutual fund), but may not own
more than 3% of the outstanding securities of any one investment company or
invest more than 10% of their total assets in the securities of other investment
companies. These limits do not apply to the Funds of Funds. Other investment
company securities may include securities of a money market fund of the Trust,
and securities of other investment companies for which Banc One Investment
Advisors serves as investment advisor or administrator. Because other investment
companies employ an investment advisor, such investments by the Funds may cause
Shareholders to bear duplicate fees. Banc One Investment Advisors will waive its
fee attributable to the assets of the investing fund invested in a money market
fund of the Trust and in other funds advised by Banc One Investment Advisors;
and, to the extent required by the laws of any state in which shares of the
Trust are sold, Banc One Investment Advisors will waive its fees attributable to
the assets of any Fund invested in any investment company.

LOAN PARTICIPATIONS AND ASSIGNMENTS

   
         Some of the Funds may invest in fixed and floating rate loans ("LOANS")
arranged through private negotiations between issuers (which may be corporate
issuers or issuers of Sovereign Debt Obligations) and one or more financial
institutions ("LENDERS"). Investments in loans are expected in most instances to
be in the form of participations in Loans ("PARTICIPATIONS") and assignments of
all or a portion of Loans ("ASSIGNMENTS") from third parties. Because loan
participants and assignments may be illiquid, a Fund will invest no more than
15% (10% for the Money Market Funds) of its net assets in loan participations
and other illiquid assets. The government that is the borrower on the Loan will
be considered by the Fund to be the issuer of a Participations or Assignment for
    


                                       38
<PAGE>   552

   
purposes of the fund's fundamental investment policy that it will not invest 25%
or more of its total assets in securities of issuers conducting their principal
business activities in the same industry (i.e., foreign government). A Fund's
investment in Participations typically will result in the Fund having a
contractual relationship only with the Lender and not with the borrower.
    

         When a Fund purchases Assignments from Lenders it will acquire direct
rights against the borrower on the Loan. Because Assignments are arranged
through private negotiations between potential assignees and potential
assignors, however, the rights and obligations acquired by a Fund as the
purchaser of an Assignment may differ from, and be more limited than, those held
by the assigning Lender. The assignability of certain Sovereign Debt Obligations
is restricted by the governing documentation as to the nature of the assignee
such that the only way in which a Fund may acquire an interest in a Loan is
through a Participations and not an Assignment. A Fund may have difficulty
disposing of Assignments and Participations because to do so it will have to
assign such securities to a third party. Because there is no liquid market for
such securities, the Funds anticipate that such securities could be sold only to
a limited number of institutional investors. The lack of a liquid secondary
market may have an adverse impact on the value of such securities and a Fund's
ability to dispose of particular Assignments or Participations when necessary to
meet a Fund's liquidity needs in response to a specific economic event such as a
deterioration in the creditworthiness of the borrower. The lack of a liquid
secondary market for Assignments and Participations also may make it more
difficult for a Fund to assign a value to those securities for purposes of
valuing a Fund's portfolio and calculating its net asset value.

MORTGAGE-RELATED SECURITIES

   
         MORTGAGE-BACKED SECURITIES (CMOS AND REMICS). Certain of the Funds may
invest in mortgage-backed securities including collateralized mortgage
obligations ("CMOS") and Real Estate Mortgage Investment Conduits ("REMICS").
Mortgage-backed securities represent pools of mortgage loans assembled for sale
to investors by various governmental agencies such as Ginnie Mae and
government-related organizations such as Fannie Mae and Freddie Mac, as well as
by nongovernmental issuers such as commercial banks, savings and loan
institutions, mortgage bankers, and private mortgage insurance companies. Such
non-governmental mortgage securities cannot be treated as U.S. government
securities for purposes of investment policies. A REMIC is a CMO that qualifies
for special tax treatment under the Code and invests in certain mortgages
principally secured by interests in real property and other permitted
investments.
    

         There are a number of important differences among the agencies and
instrumentalities of the U.S. government that issue mortgage-related securities
and among the securities that they issue.

         Ginnie Mae Securities. Mortgage-related securities issued by Ginnie Mae
         include Ginnie Mae Mortgage Pass-Through Certificates which are
         guaranteed as to the timely payment of principal and interest by Ginnie
         Mae and such guarantee is 


                                       39
<PAGE>   553

         backed by the full faith and credit of the United States. Ginnie Mae is
         a wholly-owned U.S. government corporation within the Department of
         Housing and Urban Development. Ginnie Mae certificates also are
         supported by the authority of Ginnie Mae to borrow funds from the U.S.
         Treasury to make payments under its guarantee.

         Fannie Mae Securities. Mortgage-related securities issued by Fannie Mae
         include Fannie Mae Guaranteed Mortgage Pass-Through Certificates which
         are solely the obligations of Fannie Mae and are not backed by or
         entitled to the full faith and credit of the United States. Fannie Mae
         is a government-sponsored organization owned entirely by private
         stock-holders. Fannie Mae Certificates are guaranteed as to timely
         payment of the principal and interest by Fannie Mae.

         Freddie Mac Securities. Mortgage-related securities issued by Freddie
         Mac include Freddie Mac Mortgage Participation Certificates. Freddie
         Mac is a corporate instrumentality of the United States, created
         pursuant to an Act of Congress, which is owned entirely by Federal Home
         Loan Banks.

         Freddie Mac Certificates are not guaranteed by the United States or by
         any Federal Home Loan Banks and do not constitute a debt or obligation
         of the United States or of any Federal Home Loan Bank. Freddie Mac
         Certificates entitle the holder to timely payment of interest, which is
         guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate
         collection or timely payment of all principal payments on the
         underlying mortgage loans. When Freddie Mac does not guarantee timely
         payment of principal, Freddie Mac may remit the amount due on account
         of its guarantee of ultimate payment of principal at any time after
         default on an underlying mortgage, but in no event later than one year
         after it becomes payable.

   
         CMOs and guaranteed REMIC pass-through certificates ("REMIC
CERTIFICATES") issued by Fannie Mae, Freddie Mac, Ginnie Mae and private issuers
are types of multiple class pass-through securities. Investors may purchase
beneficial interests in REMICs, which are known as "regular" interests or
"residual" interests. The Funds do not currently intend to purchase residual
interests in REMICs. The REMIC Certificates represent beneficial ownership
interests in a REMIC Trust, generally consisting of mortgage loans or Fannie
Mae, Freddie Mac or Ginnie Mae guaranteed mortgage pass-through certificates
(the "MORTGAGE ASSETS"). The obligations of Fannie Mae, Freddie Mac or Ginnie
Mae under their respective guaranty of the REMIC Certificates are obligations
solely of Fannie Mae, Freddie Mac or Ginnie Mae, respectively.
    

         Fannie Mae REMIC Certificates are issued and guaranteed as to timely
distribution of principal and interest by Fannie Mae. In addition, Fannie Mae
will be obligated to distribute the principal balance of each class of REMIC
Certificates in full, whether or not sufficient funds are otherwise available.

         For Freddie Mac REMIC Certificates, Freddie Mac guarantees the timely
payment of interest, and also guarantees the payment of principal as payments
are 


                                       40
<PAGE>   554

   
required to be made on the underlying mortgage participation certificates
("PCs"). PCs represent undivided interests in specified residential mortgages or
participation therein purchased by Freddie Mac and placed in a PC pool. With
respect to principal payments on PCs, Freddie Mac generally guarantees ultimate
collection of all principal of the related mortgage loans without offset or
deduction. Freddie Mac also guarantees timely payment of principal on certain
PCs referred to as "Gold PCs."
    

         Ginnie Mae REMIC Certificates guarantee the full and timely payment of
interest and principal on each class of securities (in accordance with the terms
of those classes as specified in the related offering circular supplement). The
Ginnie Mae guarantee is backed by the full faith and credit of the United States
of America.

         REMIC Certificates issued by Fannie Mae, Freddie Mac and Ginnie Mae are
treated as U.S. government securities for purposes of investment policies. CMOs
and REMIC Certificates provide for the redistribution of cash flow to multiple
classes. Each class of CMOs or REMIC Certificates, often referred to as a
"tranche," is issued at a specific adjustable or fixed interest rate and must be
fully retired no later than its final distribution date. This reallocation of
interest and principal results in the redistribution of prepayment risk across
to different classes. This allows for the creation of bonds with more or less
risk than the underlying collateral exhibits. Principal prepayments on the
mortgage loans or the Mortgage Assets underlying the CMOs or REMIC Certificates
may cause some or all of the classes of CMOs or REMIC Certificates to be retired
substantially earlier than their final distribution dates. Generally, interest
is paid or accrues on all classes of CMOs or REMIC Certificates on a monthly
basis.

         The principal of and interest on the Mortgage Assets may be allocated
among the several classes of CMOs or REMIC Certificates in various ways. In
certain structures (known as "sequential pay" CMOs or REMIC Certificates),
payments of principal, including any principal prepayments, on the Mortgage
Assets generally are applied to the classes of CMOs or REMIC Certificates in the
order of their respective final distribution dates. Thus, no payment of
principal will be made on any class of sequential pay CMOs or REMIC Certificates
until all other classes having an earlier final distribution date have been paid
in full.

         Additional structures of CMOs and REMIC Certificates include, among
others, "parallel pay" CMOs and REMIC Certificates. Parallel pay CMOs or REMIC
Certificates are those which are structured to apply principal payments and
prepayments of the Mortgage Assets to two or more classes concurrently on a
proportionate or disproportionate basis. These simultaneous payments are taken
into account in calculating the final distribution date of each class.

   
         A wide variety of REMIC Certificates may be issued in the parallel pay
or sequential pay structures. These securities include accrual certificates
(also known as "Z-BONDS"), which only accrue interest at a specified rate until
all other certificates having an earlier final distribution date have been
retired and are converted thereafter to an interest-paying security, and planned
amortization class ("PAC") certificates, which are parallel pay REMIC
Certificates which generally require that specified amounts of 
    


                                       41
<PAGE>   555

   
principal be applied on each payment date to one or more classes of REMIC
Certificates (the "PAC CERTIFICATES"), even though all other principal payments
and prepayments of the Mortgage Assets are then required to be applied to one or
more other classes of the certificates. The scheduled principal payments for the
PAC Certificates generally have the highest priority on each payment date after
interest due has been paid to all classes entitled to receive interest
currently. Shortfalls, if any, are added to the amount of principal payable on
the next payment date. The PAC Certificate payment schedule is taken into
account in calculating the final distribution date of each class of PAC. In
order to create PAC tranches, one or more tranches generally must be created
that absorb most of the volatility in the underlying Mortgage Assets. These
tranches tend to have market prices and yields that are much more volatile than
the PAC classes. The Z-Bonds in which the Funds may invest may bear the same
non-credit- related risks as do other types of Z-Bonds. Z-Bonds in which the
Fund may invest will not include residual interest.
    

         LIMITATIONS ON THE USE OF MORTGAGE-BACKED SECURITIES

   
         Equity Funds. The Balanced Fund, the Small Cap Value Fund, the
         Diversified Mid Cap Fund, and the Diversified International Fund may
         invest in mortgage-backed securities issued by private issuers
         including Guaranteed CMOs and REMIC pass-through Securities that are
         rated in one of the four highest rating categories by at least one
         NRSRO at the time of investment or, if unrated, determined by Banc One
         Investment Advisors to be of comparable quality.

         Bond Funds. The Government Bond Fund and the Treasury & Agency Fund may
         only invest in mortgage-backed securities issued or guaranteed by the
         U.S. government, or its agencies or instrumentalities. The other Bond
         Funds that invest in mortgage-backed securities may invest in
         mortgage-backed securities issued by private issuers including
         Guaranteed CMOs and REMIC pass-through securities. The Government Bond
         Fund and the Treasury & Agency Fund may invest in mortgage-backed
         securities that are rated in one of the three highest rating categories
         by at least one NRSRO at the time of investment or, if unrated,
         determined by Banc One Investment Advisors to be of comparable quality.
         The Short-Term Bond Fund, the Ultra Short-Term Bond Fund, the
         Intermediate Bond Fund, and the Bond Fund may invest in mortgage-backed
         securities that are rated in one of the four highest rating categories
         by at least one NRSRO at the time of investment or, if unrated,
         determined by Banc One Investment Advisor to be of comparable quality.
         The Income Bond Fund and the High Yield Bond Fund can invest in
         mortgage-backed securities in ANY rating category.

         Municipal Bond Funds. The Municipal Bond Funds may invest in
         mortgage-backed securities that are rated in one of the four highest
         rating categories by at least one NRSRO at the time of investment or,
         if unrated, determined by Banc One Investment Advisor to be of
         comparable quality.
    

                                       42
<PAGE>   556

   
         Money Market Funds. The Government Money Market Fund may only invest in
         mortgage-backed securities issued or guaranteed by the U.S. government,
         or its agencies or instrumentalities. The other Money Market Funds that
         invest in mortgage-backed securities may invest in mortgage-backed
         securities issued by private issuers including Guaranteed CMOs and
         REMIC pass-through securities. The Prime Money Market Fund, the
         Municipal Money Market Fund, the Ohio Municipal Money Market Fund, and
         the Michigan Municipal Money Market Fund may invest in mortgage-backed
         securities that are rated in one of the two highest rating categories
         by at least one NRSRO at the time of investment or, if unrated,
         determined by Banc One Investment Advisors to be of comparable quality.

         Institutional Money Market Funds. The Institutional Money Market Funds
         (other than the Municipal Cash Management Money Market Fund and the
         Cash Management Money Market Fund) may only invest in mortgage-backed
         securities issued or guaranteed by the U.S. government, or its agencies
         or instrumentalities. The Municipal Cash Management Money Market Fund
         may invest in mortgage-backed securities issued by private issuers
         including Guaranteed CMOs and REMIC pass-through securities. With
         respect to the Institutional Money Market Funds, mortgage-backed
         securities must be rated in one of the two highest rating categories by
         at least one NRSRO at the time of investment or, if unrated, determined
         by Banc One Investment Advisors to be of comparable quality.
    

         MORTGAGE DOLLAR ROLLS. Some of the Funds may enter into Mortgage Dollar
Rolls in which the Funds sell securities for delivery in the current month and
simultaneously contract with the same counterparty to repurchase similar (same
type, coupon and maturity) but not identical securities on a specified future
date. When a Fund enters into mortgage dollar rolls, the Fund will hold and
maintain a segregated account until the settlement date, cash or liquid, high
grade debt securities in an amount equal to the forward purchase price. The
Funds benefit to the extent of any difference between the price received for the
securities sold and the lower forward price for the future purchase (often
referred to as the "drop") or fee income plus the interest earned on the cash
proceeds of the securities sold until the settlement date of the forward
purchase. Unless such benefits exceed the income, capital appreciation and gain
or loss due to mortgage prepayments that would have been realized on the
securities sold as part of the mortgage dollar roll, the use of this technique
will diminish the investment performance of the Funds compared with what such
performance would have been without the use of mortgage dollar rolls. The
benefits derived from the use of mortgage dollar rolls may depend upon Banc One
Investment Advisors' ability to predict correctly mortgage prepayments and
interest rates. There is no assurance that mortgage dollar rolls can be
successfully employed. The Funds currently intend to enter into mortgage dollar
rolls that are accounted for as a financing transaction. For purposes of
diversification and 


                                       43
<PAGE>   557

investment limitations, mortgage dollar rolls are considered to be
mortgage-backed securities.

   
         STRIPPED MORTGAGE BACKED SECURITIES. Stripped Mortgage Backed
Securities ("SMBS") are derivative multi-class mortgage securities. SMBS are
usually structured with two classes that receive different proportions of the
interest and principal distributions from a pool of mortgage assets. A common
type of SMBS will have one class receiving all of the interest from the mortgage
assets ("IOs"), while the other class will receive all of the principal ("POs").
Mortgage IOs receive monthly interest payments based upon a notional amount that
declines over time as a result of the normal monthly amortization and
unscheduled prepayments of principal on the associated mortgage POs.
    

         In addition to the risks applicable to Mortgage-Related Securities in
general, SMBS are extremely sensitive to changes in prepayments and interest
rates. Even though such securities have been guaranteed by an agency or
instrumentality of the U.S. government, under certain interest rate or
prepayment rate scenarios, the Funds may fail to fully recover their investment
in such securities. Changes in prepayment rates can cause the return on
investment in IOs to be highly volatile, and under extremely high prepayment
conditions IOs can incur significant losses. POs are bought at a discount to the
ultimate principal repayment value. The rate of return on a PO will vary with
prepayments, rising as prepayment increase and falling as prepayments decrease.
The market value of the class consisting entirely of principal payments
generally is unusually volatile in response to changes in interest rates. The
yields on a class of SMBS that receives all or most of the interest from
mortgage assets are generally higher than prevailing market yields on other
mortgage-backed securities because their cash flow patterns are more volatile
and there is a greater risk that any premium paid will not be fully recouped.
Banc One Investment Advisors will seek to manage these risks (and potential
benefits) by investing in a variety of such securities and by using certain
analytical and hedging.

   
         The Bond Funds (other than the Ultra Short-Term Bond Fund, the
Short-Term Bond Fund, and the Treasury & Agency Fund), the Municipal Bond Funds,
and the Balanced Fund may invest in SMBS to enhance revenues or hedge against
interest rate risk. The Funds may only invest in SMBS issued or guaranteed by
the U.S. government, its agencies or instrumentalities. Although the market for
SMBS is increasingly liquid, certain SMBS may not be readily marketable and will
be considered illiquid for purposes of the Funds' limitations on investments in
illiquid securities.

         ADJUSTABLE RATE MORTGAGE LOANS. The Bond Funds and the Balanced Fund,
may invest in adjustable rate mortgage loans ("ARMS"). The Treasury & Agency
Fund may buy only government ARMs. ARMs eligible for inclusion in a mortgage
pool will generally provide for a fixed initial mortgage interest rate for a
specified period of time. Thereafter, the interest rates (the "MORTGAGE INTEREST
RATES") may be subject to periodic adjustment based on changes in the applicable
index rate (the "INDEX RATE"). The adjusted rate would be equal to the Index
Rate plus a gross margin, 
    


                                       44
<PAGE>   558

which is a fixed percentage spread over the Index Rate established for each ARM
at the time of its origination.

   
         Adjustable interest rates can cause payment increases that some
borrowers may find difficult to make. However, certain ARMs may provide that the
Mortgage Interest Rate may not be adjusted to a rate above an applicable
lifetime maximum rate or below an applicable lifetime minimum rate for such ARM.
Certain ARMs may also be subject to limitations on the maximum amount by which
the Mortgage Interest Rate may adjust for any single adjustment period (the
"MAXIMUM ADJUSTMENT"). Other ARMs ("NEGATIVELY AMORTIZING ARMS") may provide
instead or as well for limitations on changes in the monthly payment on such
ARMs. Limitations on monthly payments can result in monthly payments which are
greater or less than the amount necessary to amortize a Negatively Amortizing
ARM by its maturity at the Mortgage Interest Rate in effect in any particular
month. In the event that a monthly payment is not sufficient to pay the interest
accruing on a Negatively Amortizing ARM, any such excess interest is added to
the principal balance of the loan, causing negative amortization and will be
repaid through future monthly payments. It may take borrowers under Negatively
Amortizing ARMs longer periods of time to achieve equity and may increase the
likelihood of default by such borrowers. In the event that a monthly payment
exceeds the sum of the interest accrued at the applicable Mortgage Interest Rate
and the principal payment which would have been necessary to amortize the
outstanding principal balance over the remaining term of the loan, the excess
(or "accelerated amortization") further reduces the principal balance of the
ARM. Negatively Amortizing ARMs do not provide for the extension of their
original maturity to accommodate changes in their Mortgage Interest Rate. As a
result, unless there is a periodic recalculation of the payment amount (which
there generally is), the final payment may be substantially larger than the
other payments. These limitations on periodic increases in interest rates and on
changes in monthly payment protect borrowers from unlimited interest rate and
payment increases.
    

         Certain adjustable rate mortgage loans may provide for periodic
adjustments of scheduled payments in order to amortize fully the mortgage loan
by its stated maturity. Other adjustable rate mortgage loans may permit their
stated maturity to be extended or shortened in accordance with the portion of
each payment that is applied to interest as affected by the periodic interest
rate adjustments.

   
         There are two main categories of indices which provide the basis for
rate adjustments on ARMs: those based on U.S. Treasury securities and those
derived from a calculated measure such as a cost of funds index or a moving
average of mortgage rates. Commonly utilized indices include the one-year,
three-year and five-year constant maturity Treasury bill rates, the three-month
Treasury bill rate, the 180-day Treasury bill rate, rates on longer-term
Treasury securities, the 11th District Federal Home Loan Bank Cost of Funds, the
National Median Cost of Funds, the one-month, three-month, six-month or one-year
London Interbank Offered Rate ("LIBOR"), the prime rate of a specific bank, or
commercial paper rates. Some indices, such as the one-year constant maturity
Treasury rate, closely mirror changes in market interest rate levels. Others,
such as the 11th District Federal Home Loan Bank Cost of Funds index, tend to
lag behind changes in market rate levels and tend to be somewhat less volatile.
The degree of 
    


                                       45
<PAGE>   559

volatility in the market value of the Fund's portfolio and therefore in the net
asset value of the Fund's shares will be a function of the length of the
interest rate reset periods and the degree of volatility in the applicable
indices.

         In general, changes in both prepayment rates and interest rates will
change the yield on Mortgage-Backed Securities. The rate of principal
prepayments with respect to ARMs has fluctuated in recent years. As is the case
with fixed mortgage loans, ARMs may be subject to a greater rate of principal
prepayments in a declining interest rate environment. For example, if prevailing
interest rates fall significantly, ARMs could be subject to higher prepayment
rates than if prevailing interest rates remain constant because the availability
of fixed rate mortgage loans at competitive interest rates may encourage
mortgagors to refinance their ARMs to "lock-in" a lower fixed interest rate.
Conversely, if prevailing interest rates rise significantly, ARMs may prepay at
lower rates than if prevailing rates remain at or below those in effect at the
time such ARMs were originated. As with fixed rate mortgages, there can be no
certainty as to the rate of prepayments on the ARMs in either stable or changing
interest rate environments. In addition, there can be no certainty as to whether
increases in the principal balances of the ARMs due to the addition of deferred
interest may result in a default rate higher than that on ARMs that do not
provide for negative amortization. Other factors affecting prepayment of ARMs
include changes in mortgagors' housing needs, job transfers, unemployment,
mortgagors' net equity in the mortgage properties and servicing decisions.

         RISKS FACTORS OF MORTGAGE-RELATED SECURITIES.

         Guarantor Risk. There can be no assurance that the U.S. government
         would provide financial support to Fannie Mae, Freddie Mac or Ginnie
         Mae if necessary in the future. Although certain mortgage-related
         securities are guaranteed by a third party or otherwise similarly
         secured, the market value of the security, which may fluctuate, is not
         so secured.

         Interest Rate Sensitivity. If a Fund purchases a mortgage-related
         security at a premium, that portion may be lost if there is a decline
         in the market value of the security whether resulting from changes in
         interest rates or prepayments in the underlying mortgage collateral. As
         with other interest-bearing securities, the prices of such securities
         are inversely affected by changes in interest rates. However, though
         the value of a mortgage-related security may decline when interest
         rates rise, the converse is not necessarily true since in periods of
         declining interest rates the mortgages underlying the securities are
         prone to prepayment. For this and other reasons, a mortgage-related
         security's stated maturity may be shortened by unscheduled prepayments
         on the underlying mortgages and, therefore, it is not possible to
         predict accurately the security's return to the Funds. In addition,
         regular payments received in respect of mortgage-related securities
         include both interest and principal. No assurance can be given as to
         the return the Funds of the Trust will receive when these amounts are
         reinvested.



                                       46
<PAGE>   560

         Market Value. The market value of the Fund's adjustable rate
         Mortgage-Backed Securities may be adversely affected if interest rates
         increase faster than the rates of interest payable on such securities
         or by the adjustable rate mortgage loans underlying such securities.
         Furthermore, adjustable rate Mortgage-Backed Securities or the mortgage
         loans underlying such securities may contain provisions limiting the
         amount by which rates may be adjusted upward and downward and may limit
         the amount by which monthly payments may be increased or decreased to
         accommodate upward and downward adjustments in interest rates.

         Prepayments. Although having less risk of decline during periods of
         rising interest rates, adjustable rate Mortgage-Backed Securities have
         less potential for capital appreciation than fixed rate Mortgage-Backed
         Securities because their coupon rates will decline in response to
         market interest rate declines. The market value of fixed rate
         Mortgage-Backed Securities may be adversely affected as a result of
         increases in interest rates and, because of the risk of unscheduled
         principal prepayments, may benefit less than other fixed rate
         securities of similar maturity from declining interest rates. Finally,
         to the extent Mortgage-Backed Securities are purchased at a premium,
         mortgage foreclosures and unscheduled principal prepayments may result
         in some loss of the Fund's principal investment to the extent of the
         premium paid. On the other hand, if such securities are purchased at a
         discount, both a scheduled payment of principal and an unscheduled
         prepayment of principal will increase current and total returns and
         will accelerate the recognition of income.

         Yield Characteristics. The yield characteristics of Mortgage-Backed
         Securities differ from those of traditional fixed income securities.
         The major differences typically include more frequent interest and
         principal payments, usually monthly, and the possibility that
         prepayments of principal may be made at any time. Prepayment rates are
         influenced by changes in current interest rates and a variety of
         economic, geographic, social and other factors and cannot be predicted
         with certainty. As with fixed rate mortgage loans, adjustable rate
         mortgage loans may be subject to a greater prepayment rate in a
         declining interest rate environment. The yields to maturity of the
         Mortgage-Backed Securities in which the Funds invest will be affected
         by the actual rate of payment (including prepayments) of principal of
         the underlying mortgage loans. The mortgage loans underlying such
         securities generally may be prepaid at any time without penalty. In a
         fluctuating interest rate environment, a predominant factor affecting
         the prepayment rate on a pool of mortgage loans is the difference
         between the interest rates on the mortgage loans and prevailing
         mortgage loan interest rates (giving consideration to the cost of any
         refinancing). In general, if mortgage loan interest rates fall
         sufficiently below the interest rates on fixed rate mortgage loans
         underlying mortgage pass-through securities, the rate of prepayment
         would be expected to increase. Conversely, if mortgage loan interest
         rates rise above the interest rates on the fixed rate mortgage loans
         underlying the mortgage pass-through securities, the rate of prepayment
         may be expected to decrease.



                                       47
<PAGE>   561

MUNICIPAL SECURITIES

   
         Municipal Securities are issued to obtain funds for various public
purposes, including the construction of a wide range of public facilities such
as bridges, highways, roads, schools, water and sewer works, and other
utilities. Other public purposes for which Municipal Securities may be issued
include refunding outstanding obligations, obtaining funds for general operating
expenses and obtaining funds to lend to other public institutions and
facilities. In addition, certain debt obligations known as "PRIVATE ACTIVITY
BONDS" may be issued by or on behalf of municipalities and public authorities to
obtain funds to provide certain water, sewage and solid waste facilities,
qualified residential rental projects, certain local electric, gas and other
heating or cooling facilities, qualified hazardous waste facilities, high-speed
inter-city rail facilities, governmentally-owned airports, docks and wharves and
mass commuting facilities, certain qualified mortgages, student loan and
redevelopment bonds and bonds used for certain organizations exempt from federal
income taxation.
    

         Certain debt obligations known as "INDUSTRIAL DEVELOPMENT BONDS" under
prior federal tax law may have been issued by or on behalf of public authorities
to obtain funds to provide certain privately operated housing facilities, sports
facilities, industrial parks, convention or trade show facilities, airport, mass
transit, port or parking facilities, air or 


                                       48
<PAGE>   562

water pollution control facilities, sewage or solid waste disposal facilities,
and certain facilities for water supply. Other private activity bonds and
industrial development bonds issued to fund the construction, improvement,
equipment or repair of privately-operated industrial, distribution, research, or
commercial facilities may also be Municipal Securities, but the size of such
issues is limited under current and prior federal tax law. The aggregate amount
of most private activity bonds and industrial development bonds is limited
(except in the case of certain types of facilities) under federal tax law by an
annual "volume cap." The volume cap limits the annual aggregate principal amount
of such obligations issued by or on behalf of all governmental instrumentalities
in the state.

         The two principal classifications of Municipal Securities consist of
"general obligation" and "limited" (or revenue) issues. General obligation bonds
are obligations involving the credit of an issuer possessing taxing power and
are payable from the issuer's general unrestricted revenues and not from any
particular fund or source. The characteristics and method of enforcement of
general obligation bonds vary according to the law applicable to the particular
issuer, and payment may be dependent upon appropriation by the issuer's
legislative body. Limited obligation bonds are payable only from the revenues
derived from a particular facility or class of facilities or, in some cases,
from the proceeds of a special excise or other specific revenue source. Private
activity bonds and industrial development bonds generally are revenue bonds and
thus not payable from the unrestricted revenues of the issuer. The credit and
quality of such bonds is generally related to the credit of the bank selected to
provide the letter of credit underlying the bond. Payment of principal of and
interest on industrial development revenue bonds is the responsibility of the
corporate user (and any guarantor).

         The Funds may also acquire "moral obligation" issues, which are
normally issued by special purpose authorities, and in other tax-exempt
investments including pollution control bonds and tax-exempt commercial paper.
Each Fund may purchase short-term tax-exempt General Obligations Notes, Tax
Anticipation Notes, Bond Anticipation Notes, Revenue Anticipation Notes, Project
Notes, and other forms of short-term tax-exempt loans. Such notes are issued
with a short-term maturity in anticipation of the receipt of tax funds, the
proceeds of bond placements, or other revenues. Project Notes are issued by a
state or local housing agency and are sold by the Department of Housing and
Urban Development. While the issuing agency has the primary obligation with
respect to its Project Notes, they are also secured by the full faith and credit
of the United States through agreements with the issuing authority which provide
that, if required, the federal government will lend the issuer an amount equal
to the principal of and interest on the Project Notes.

         There are, of course, variations in the quality of Municipal
Securities, both within a particular classification and between classifications,
and the yields on Municipal Securities depend upon a variety of factors,
including general money market conditions, the financial condition of the
issuer, general conditions of the municipal bond market, the size of a
particular offering, the maturity of the obligations, and the rating of the
issue. The ratings of Moody's and S&P represent their opinions as to the quality
of Municipal Securities. It should be emphasized, however, that ratings are
general and are not absolute standards of quality, and Municipal Securities with
the same maturity, interest rate and


                                       49
<PAGE>   563

rating may have different yields while Municipal Securities of the same maturity
and interest rate with different ratings may have the same yield. Subsequent to
its purchase by a Fund, an issue of Municipal Securities may cease to be rated
or its rating may be reduced below the minimum rating required for purchase by
the Fund. Banc One Investment Advisors or the applicable Sub-Advisor will
consider such an event in determining whether the Fund should continue to hold
the obligations.
   

         Municipal securities may include OBLIGATIONS OF MUNICIPAL HOUSING
AUTHORITIES and SINGLE-FAMILY MORTGAGE REVENUE BONDS. Weaknesses in Federal
housing subsidy programs and their administration may result in a decrease of
subsidies available for payment of principal and interest on housing authority
bonds. Economic developments, including fluctuations in interest rates and
increasing construction and operating costs, may also adversely impact revenues
of housing authorities. In the case of some housing authorities, inability to
obtain additional financing could also reduce revenues available to pay existing
obligations. Single-family mortgage revenue bonds are subject to extraordinary
mandatory redemption at par in whole or in part from the proceeds derived from
prepayments of underlying mortgage loans and also from the unused proceeds of
the issue within a stated period which may be within a year from the date of
issue.

         MUNICIPAL LEASES are obligations issued by state and local governments
or authorities to finance the acquisition of equipment and facilities and may be
considered to be illiquid. They may take the form of a lease, an installment
purchase contract, a conditional sales contract, or a participation interest in
any of the above. The Board of Trustees is responsible for determining the
credit quality of unrated municipal leases, on an ongoing basis, including an
assessment of the likelihood that the lease will not be canceled.
    

         RISK FACTORS IN MUNICIPAL SECURITIES

         Tax Risk. The Code imposes certain continuing requirements on issuers
         of tax-exempt bonds regarding the use, expenditure and investment of
         bond proceeds and the payment of rebates to the United States of
         America. Failure by the issuer to comply subsequent to the issuance of
         tax-exempt bonds with certain of these requirements could cause
         interest on the bonds to become includable in gross income retroactive
         to the date of issuance.

         Housing Authority Tax Risk. The exclusion from gross income for Federal
         income tax purposes for certain housing authority bonds depends on
         qualification under relevant provisions of the Code and on other
         provisions of Federal law. These provisions of Federal law contain
         certain ongoing requirements relating to the cost and location of the
         residences financed with the proceeds of the single-family mortgage
         bonds and the income levels of tenants of the rental projects financed
         with the proceeds of the multi-family housing bonds. While the issuers
         of the bonds, and other parties, including the originators and
         servicers of the single-family mortgages and the owners of the rental
         projects financed with the multi-family housing bonds, covenant to meet
         these ongoing requirements and generally agree to institute procedures
         designed to insure that these requirements will be consistently met,
         there is no assurance that the requirements will be 


                                       50
<PAGE>   564

         consistently met. The failure to meet these requirements could cause
         the interest on the bonds to become taxable, possibly retroactively
         from the date of issuance, thereby reducing the value of the bonds and
         subjecting Shareholders to unanticipated tax liabilities and possibly
         requiring a Fund to sell the bonds at the reduced value. Furthermore,
         any failure to meet these ongoing requirements might constitute an
         event of default under the applicable mortgage or permit the holder to
         accelerate payment of the bond or require the issuer to redeem the
         bond. In any event, where the mortgage is insured by the Federal
         Housing Administration ("FHA"), the consent of the FHA may be required
         before insurance proceeds would become payable to redeem the mortgage
         subsidy

         Information Risk. Information about the financial condition of issuers
         of Municipal Securities may be less available than about corporations
         having a class of securities registered under the Securities Exchange
         Act of 1934.

         State and Federal Laws. An issuer's obligations under its Municipal
         Securities are subject to the provisions of bankruptcy, insolvency, and
         other laws affecting the rights and remedies of creditors, such as the
         federal bankruptcy code, and laws, if any, which may be enacted by
         Congress or state legislatures extending the time for payment of
         principal or interest, or both, or imposing other constraints upon the
         enforcement of such obligations. The power or ability of an issuer to
         meet its obligations for the payment of interest on and principal of
         its Municipal Securities may be materially adversely affected by
         litigation or other conditions.

         Litigation and Current Developments. Such litigation or conditions may
         from time to time have the effect of introducing uncertainties in the
         market for tax-exempt obligations or certain segments thereof, or may
         materially affect the credit risk with respect to particular bonds or
         notes. Adverse economic, business, legal or political developments
         might affect all or a substantial portion of a Fund's Municipal
         Securities in the same manner.

         New Legislation. From time to time, proposals have been introduced
         before Congress for the purpose of restricting or eliminating the
         federal income tax exemption for interest on tax exempt bonds, and
         similar proposals may be introduced in the future. The Supreme Court
         has held that Congress has the constitutional authority to enact such
         legislation. It is not possible to determine what effect the adoption
         of such proposals could have on (i) the availability of Municipal
         Securities for investment by the Funds, and (ii) the value of the
         investment portfolios of the Funds.

         LIMITATIONS ON THE USE OF MUNICIPAL SECURITIES.

   
         As a matter of fundamental policy, under normal market conditions, at
least 80% of the total assets (net assets in the case of the Louisiana Municipal
Bond Fund) of each of the Municipal Money Market Fund, the Ohio Municipal Money
Market Fund, the Michigan Municipal Money Market Fund, the Municipal Income
Fund, the Intermediate Tax-Free Bond Fund, the Ohio Municipal Bond Fund, the
Michigan Municipal Bond Fund, the Texas Municipal Bond Fund, the Kentucky
Municipal Bond Fund, the Louisiana Municipal Bond Fund, the West Virginia
Municipal Bond Fund, the Arizona 
    


                                       51
<PAGE>   565
   
Municipal Bond Fund, and the Tax-Exempt Money Market Fund will be invested in
Municipal Securities. Other Funds may also invest in Municipal Securities if
Banc One Investment Advisors or the applicable Sub-Advisor determines that such
Municipal Securities offer attractive yields. The Funds may invest in Municipal
Securities either by purchasing them directly or by purchasing certificates of
accrual or similar instruments evidencing direct ownership of interest payments
or principal payments, or both, on Municipal Securities, provided that, in the
opinion of counsel to the initial seller of each such certificate or instrument,
any discount accruing on such certificate or instrument that is purchased at a
yield not greater than the coupon rate of interest on the related Municipal
Securities will to the same extent as interest on such Municipal Securities be
exempt from federal income tax and state income tax (where applicable) and not
treated as a preference item for individuals for purposes of the federal
alternative minimum tax.
    

         The Funds may also invest in Municipal Securities by purchasing from
banks participation interests in all or part of specific holdings of Municipal
Securities. Such participation may be backed in whole or in part by an
irrevocable letter of credit or guarantee of the selling bank. The selling bank
may receive a fee from a Fund in connection with the arrangement. A Fund will
not purchase participation interests unless it receives an opinion of counsel or
a ruling of the Internal Revenue Service that interest earned by it on Municipal
Securities in which it holds such participation interest is exempt from federal
income tax and state income tax (where applicable) and not treated as a
preference item for individuals for purposes of the federal alternative minimum
tax.

   
         The Tax-Advantaged Funds may not be a desirable investment for
"substantial users" of facilities financed by private activity bonds or
industrial development bonds or for "related persons" of substantial users. Each
Fund will limit its investment in municipal leases to no more than 5% of its
total assets.
    

         ARIZONA MUNICIPAL SECURITIES

         As used in the Prospectus and this Statement of Additional Information,
the term "Arizona Municipal Securities" refers to debt securities which are
issued by or on behalf of Arizona or its respective authorities, agencies,
instrumentalities and political subdivisions and which produce interest which,
in the opinion of counsel for the issuer, is exempt from both federal income tax
and Arizona personal income tax .

         Risk Factors Regarding Investments in Arizona Municipal Securities.
Over the past several decades, Arizona's economy has grown faster than most
other regions of the country. Arizona's population experienced an increase of
2.9% in 1996 and a substantially similar percentage increase in 1997. Arizona's
employment rate increased 6.7% in 1994, 6.1% in 1995, 5.6% in 1996 and 4.4% in
1997. For 1997, Arizona ranked second in the country for job growth, and the
Phoenix-Mesa metropolitan area ranked first among all United States metropolitan
areas for job growth. Recent lay offs by Motorola and Intel, two large Phoenix
area employers, may lead to more modest job growth in 1998. The 1996
unemployment rate was 5.5%, and the 1997 unemployment rate was 4.7%.



                                       52
<PAGE>   566

         Arizona's per capita personal income has generally varied between 5%
and 15% below the national average due to such factors as the chronic poverty on
the state's Indian reservations, the states relatively high number of retirees
and children, and the state's below-average wage scale. However, Arizona's
aggregate personal income grew nearly 5.3% during 1996 to approximately $84.5
billion and is estimated to have reached $100.8 billion in 1997.

         Despite an increase in population, employment and aggregate personal
income, retail sales growth rates have declined over the last few years. The
growth rate was 12.0% in 1994, 8.8% in 1995, 5.9% in 1996 and an estimated 5.1%
in 1997.

         After experiencing several years of budget shortfalls requiring
mid-year adjustments, the State of Arizona has had significant budget surpluses
each year since 1993, including a $593.3 million surplus for the fiscal year
ended June 30, 1997. An amendment to the Arizona Constitution requiring a 2/3
majority vote in both houses of the Legislature to enact any tax or fee increase
limits Arizona's ability to raise additional revenue when needed, but Arizona
has placed some of its surplus revenues in a rainy-day fund to address this
risk.

         The State of Arizona, as such, has no general obligation debt. The
Arizona Department of Transportation, the Arizona Board of Regents, the Arizona
Power Authority and the Water Infrastructure Authority of Arizona have each
issued revenue bonds. The State of Arizona has financed certain capital
improvements and equipment through certificates of participation, which
represent undivided interests in lease payments to be made by the state that are
subject to annual appropriations by the Arizona legislature.

         The Arizona Constitution limits the amount of debt that can be issued
by the state's counties, cities, towns, school districts and other municipal
corporations in the form of indebtedness payable from property taxes or other
general fund sources. In general, those political subdivisions may not become
indebted in an amount exceeding six percent of the value of the taxable property
in the political subdivision without the approval of a majority of the qualified
electors voting at an election. No county or school district may become indebted
in an amount exceeding 15% (30% for unified school districts) of the value of
taxable property, even with voter approval. Incorporated cities or towns with
voter approval may become indebted in an amount up to 20% of the value of
taxable property, for purposes of supplying water, light, sewers, open space
preserves, parks, playgrounds and recreational facilities. These constitutional
debt limits generally do not apply to revenue bonds payable from a special fund
revenue source.

         In July 1994, the Arizona Supreme Court ruled that Arizona's system for
financing public education created substantial disparities in facilities among
school districts and violated the provisions of the Arizona Constitution which
require the Legislature to establish and maintain "a general and uniform public
school system." After several attempts, each of which were held unconstitutional
by the Arizona Supreme Court, the Legislature enacted legislation in July 1998,
which establishes a centralized state school capital finance system and, among
other things, limits the ability of school 


                                       53
<PAGE>   567

districts to issue bonds. There are currently no challenges pending with respect
to the legislation.

         KENTUCKY MUNICIPAL SECURITIES

         As used in the Prospectus and this Statement of Additional Information,
the term "Kentucky Municipal Securities" refers to debt securities which are
issued by or on behalf of Kentucky or its respective authorities, agencies,
instrumentalities and political subdivisions and which produce interest which,
in the opinion of counsel for the issuer, is exempt from both federal income tax
and Kentucky personal income tax.

         Risk Factors Regarding Investments in Kentucky Municipal Securities. As
of June 30, 1998, Kentucky had an unemployment rate of 4.5%, slightly less than
the 4.7% national average. For calendar year 1997, Kentucky's per capita income
ranked 41st in the nation and was 81% of the national average. The most current
audited financial statements for Kentucky indicate a surplus of funds in the
General Fund of $538,075,000 as of June 30, 1997, which was $411,185,000 above
the budgeted balance.

         Unlike the municipal securities of most states, nearly all Kentucky
Municipal Securities are not general obligations of the issuer; rather, payment
depends on revenues generated by the property financed by the securities.

         LOUISIANA MUNICIPAL SECURITIES

         As used in the Prospectus and this Statement of Additional Information,
the term "Louisiana Municipal Securities" refers to debt securities which are
issued by or on behalf of Louisiana or its respective authorities, agencies,
instrumentalities and political subdivisions and which produce interest which,
in the opinion of counsel for the issuer, is exempt from both federal income tax
and Louisiana personal income tax.

         Risk Factors Regarding Investments in Louisiana Municipal Securities.
The State of Louisiana continues to consolidate its economic and financial gains
after a period of difficulty. In the mid-1980's, abrupt declines in the price of
oil disrupted both the economy and financial operations of the State. Recent
years have generally produced operating surpluses and major financial issues,
such as Medicaid and risk management, have been addressed. Also, debt has been
reduced to a moderate level, at $574 per capita and 2.9% of personal income.

         Louisiana's economy is resource based, led by oil and gas, but
agribusiness and tourism are also significant components. Growth in the service
employment sector is providing more diversity, but the State is still very
dependent on oil and gas for direct or indirect employment and income. The price
of oil is estimated at $17 per barrel in 1998 and $17.50 in 1999.

         Personal income gains were in excess of the national rates in 1990 -
1994, both in total and on a per capita basis, but the gains were lower in 1995
and 1996. Louisiana's per capita personal income is currently equal to 81% of
the national average, but this is still well below the 90% figure recorded in
1981 when the oil and gas industry was 


                                       54
<PAGE>   568

extremely active. The State projects employment to increase 4.8% in 1998 and
4.5% in 1999.

   
MICHIGAN MUNICIPAL SECURITIES

         As used in the Prospectus and this Statement of Additional Information,
the term "Michigan Municipal Securities" refers to debt securities which are
issued by or on behalf of Michigan or its respective authorities, agencies,
instrumentalities and political subdivisions and which produce interest which,
in the opinion of counsel for the issuer, is exempt from both Federal income tax
and Michigan income tax.

         Risk Factors Regarding Michigan Municipal Securities. The State of
Michigan's economy is principally dependent on manufacturing (particularly
automobiles, office equipment and other durable goods), tourism and agriculture,
and historically has been highly cyclical.


         Total State wage and salary employment is estimated to have grown by
1.5% in 1997. The rate of unemployment is estimated to have been 4.1% in 1997,
below the national average for the fourth consecutive year. Personal income grew
at an estimated 4.7% annual rate in 1997, up from the 4.2% growth reported for
1996.

         During the past five years, improvements in the Michigan economy have
resulted in increased revenue collections which, together with restraints on the
expenditure side of the budget, have resulted in State General Fund budget
surpluses, most of which were transferred to the State's Counter-Cyclical Budget
and Economic Stabilization Fund. The balance of that Fund as of September 30,
1997 is estimated to have been in excess of $1.1 billion.

         The Michigan Constitution limits the amount of total State revenues
that can be raised from taxes and certain other sources. State revenues
(excluding federal aid and revenues for payment of principal and interest on
general obligation bonds) in any fiscal year are limited to a fixed percentage
of State personal income in the prior calendar year or the average of the prior
three calendar years, whichever is greater, and this fixed percentage equals the
percentage of the 1978-79 fiscal year state government revenues to total
calendar 1977 State personal income (which was 9.49%).

         The Michigan Constitution also provides that the proportion of State
spending paid to all units of local government to total State spending may not
be reduced below the proportion in effect in the 1978-79 fiscal year. The State
originally determined that portion to be 41.6%. If such spending does not meet
the required level in a given year, an additional appropriation for local
government units is required by the following fiscal year; which means the year
following the determinations of the shortfall, according to an opinion issued by
the State's Attorney General. Spending for local units met this requirement for
fiscal years 1986-87 through 1991-92. As the result of litigation, the State
agreed to reclassify certain expenditures, beginning with fiscal year 1992-93,
and 
    


                                       55
<PAGE>   569

   
has recalculated the required percentage of spending paid to local government
units to be 48.97%.

         The State has issued and has outstanding general obligation full faith
and credit bonds for Water Resources, Environmental Protection Program,
Recreation Program and School Loan purposes. As of September 30, 1997, the State
had approximately $677 million of general obligation bonds outstanding.

         The State may issue notes or bonds without voter approval for the
purposes of making loans to school districts. The proceeds of such notes or
bonds are deposited in the School Bond Loan Fund maintained by the State
Treasurer and used to make loans to school districts for payment of debt on
qualified general obligations bonds issued by local school districts.

         The State is a party to various legal proceedings seeking damages or
injunctive or other relief. In addition to routine litigation, certain of these
proceedings could, if unfavorably resolved from the point of view of the State,
substantially affect State programs or finances. As of early 1998, these
lawsuits involved programs generally in the areas of corrections, tax
collection, commerce, and proceedings involving budgetary reductions to school
districts and governmental units, and court funding.

         The State Constitution limits the extent to which municipalities or
political subdivisions may levy taxes upon real and personal property through a
process that regulates assessments.

         On March 15, 1994, Michigan voters approved a property tax and school
finance reform measure commonly known as Proposal A. Under Proposal A, as
approved, effective May 1, 1994, the State sales and use tax increased from 4%
to 6%, the State income tax decreased from 4.6% to 4.4%, the cigarette tax
increased from $.25 to $.75 per pack and an additional tax of 16% of the
wholesale price began to be imposed on certain other tobacco products. A .75%
real estate transfer tax became effective January 1, 1995. Beginning in 1994, a
state property tax of 6 mills began to be imposed on all real and personal
property currently subject to the general property tax. All local school boards
are authorized, with voter approval, to levy up to the lesser of 18 mills or the
number of mills levied in 1993 for school operating purposes on nonhomestead
property and nonqualified agricultural property. Proposal A contains additional
provisions regarding the ability of local school districts to levy taxes, as
well as a limit on assessment increases for each parcel of property, beginning
in 1995. Such increases for each parcel of property are limited to the lesser of
5% or the rate of inflation. When property is subsequently sold, its assessed
value will revert to the current assessment level of 50% of true cash value.
Under Proposal A, much of the additional revenue generated by the new taxes will
be dedicated to the State School Aid Fund.

         Proposal A and its implementing legislation shifted significant
portions of the cost of local school operations from local school districts to
the State and raised additional State revenues to fund these additional State
expenses. These additional revenues will be 
    


                                       56
<PAGE>   570

   
included within the State's constitutional revenue limitations and may impact
the State's ability to raise additional revenues in the future.

         A state economy during a recessionary cycle would also, as a separate
matter, adversely affect the capacity of users of facilities constructed or
acquired through the proceeds of private activity bonds or other "revenue"
securities to make periodic payments for the use of those facilities.
    

OHIO MUNICIPAL SECURITIES

         As used in the Prospectuses and this Statement of Additional
Information, the term "Ohio Municipal Securities" refers to debt securities
which are issued by or on behalf of Ohio or its respective authorities,
agencies, instrumentalities and political subdivisions which produce interest
which, in the opinion of counsel for the issuer are exempt from both federal
income tax, and Ohio personal income tax.



                                       57
<PAGE>   571

RISK FACTORS REGARDING INVESTMENTS IN OHIO MUNICIPAL SECURITIES

         The economy of Ohio, while becoming increasingly diversified and
increasingly reliant on the service sector, continues to rely in significant
part on durable goods manufacturing, which is largely concentrated in motor
vehicles and equipment, steel, rubber products and household appliances. As a
result, general economic activity in Ohio, as in many other industrial states,
tends to be more cyclical than in some other states and in the nation as a
whole. Agriculture also is an important segment of the Ohio economy, and the
state has instituted several programs to provide financial assistance to
farmers. Although revenue obligations of the state or its political subdivisions
may be payable from a specific source or project, and general obligation debt
may be payable from a specific tax, there can be no assurance that future
economic difficulties and the resulting impact on state and local government
finances will not adversely affect the market value of the Ohio Municipal
Securities in the Funds of the Trust or the ability of the respective obligors
to make timely payment of interest and principal on such obligations.

         Since the Ohio Municipal Bond Fund and Ohio Municipal Money Market Fund
invest primarily in Ohio Municipal Securities, the value of each Fund's Shares
may be especially affected by factors pertaining to the economy of Ohio and
other factors specifically affecting the ability of issuers of Ohio Municipal
Securities to meet their obligations. As a result, the value of the Shares of
the Ohio Municipal Bond Fund and the Ohio Municipal Money Market Fund may
fluctuate more widely than the value of Shares of a portfolio investing in
securities relating to a number of different states. The ability of Ohio state,
county, or local governments to meet their obligations will depend primarily on
the availability of tax and other revenues to those governments and on their
fiscal conditions generally. The amounts of tax and other revenues available to
issuers of Ohio Municipal Securities may be affected from time to time by
economic, political and demographic conditions within the state. In addition,
constitutional or statutory restrictions may limit a government's power to raise
revenues or increase taxes. The availability of federal, state, and local aid to
issuers of Ohio Municipal Securities may also affect their ability to meet their
obligations. Payments of principal and interest on limited obligation securities
will depend on the economic condition of the facility or specific revenue source
from which revenues the payments will be made, which in turn could be affected
by economic, political, and demographic conditions in the state. Any reduction
in the actual or perceived ability to meet obligations on the part of either an
issuer of an Ohio Municipal Security or a provider of credit enhancement for
such Ohio Municipal Security (including a reduction in the rating of its
outstanding securities) would likely affect adversely the market value and
marketability of that Ohio Municipal Security and could adversely affect the
values of other Ohio Municipal Securities as well.

TEXAS MUNICIPAL SECURITIES

         As used in the Prospectus and this Statement of Additional Information,
the term "Texas Municipal Securities" refers to debt securities which are issued
by or on behalf of Texas or its respective authorities, agencies,
instrumentalities and political subdivisions and which produce interest which,
in the opinion of counsel for the issuer, is exempt from federal income tax.



                                       58
<PAGE>   572

         Risk Factors Regarding Investments in Texas Municipal Securities.
Because the Fund invests primarily in obligations issued by Texas entities, the
Fund's performance is partially dependent upon economic conditions within the
State of Texas generally and upon the economic condition of issuing governments
and their instrumentalities in particular. In the late 1980's, weakness in the
oil and gas related and agricultural sectors of the Texas economy adversely
affected consumer spending, financial institutions, utility demand, and real
estate values within the state. Consequently, the state and many of its local
governments had to increase sales, utilities, and ad valorem tax rates in order
to maintain revenue yields. In the past two years, however, in contrast to the
national economy, business activity in Texas has strengthened, with employment
growth occurring in most sectors. In addition, Texas' major financial
institutions have been recapitalized and bank failures have generally ceased.

WEST VIRGINIA MUNICIPAL SECURITIES

         As used in the Prospectus and this Statement of Additional Information,
the term "West Virginia Municipal Securities" refers to debt securities which
are issued by or on behalf of West Virginia or its authorities, agencies,
instrumentalities and political subdivisions and which produce interest which,
in the opinion of counsel for the issuer, is exempt from both federal income tax
and is generally exempt from West Virginia income tax.

         Risk Factors Regarding Investments in West Virginia Municipal
Securities. Being invested primarily in West Virginia securities, the West
Virginia Municipal Bond Fund is subject to the risks of West Virginia's economy
and of the financial condition of its state and local governments and their
agencies.

         West Virginia's economy is relatively stable. While coal mining,
chemicals and manufacturing make up an important part of that economy, state and
local governments have made and continue to make concentrated efforts to
encourage diversification of the state's economy with some success. However,
unemployment for the State continues to exceed the national average.

         The financial resources for state and local governments in recent years
have been adequate. But, with little or no population growth, an aging
population, unemployment remaining above the national average, continuing
decline in school enrollment, the government and school boards continue to
struggle to produce sufficient revenues to fund operations to support public
education.

NEW FINANCIAL PRODUCTS

         New options and futures contracts and other financial products, and
various combinations thereof, continue to be developed and certain of the Funds
may invest in any such options, contracts and products as may be developed to
the extent consistent with each Fund's investment objective, policies and
restrictions and the regulatory requirements applicable to investment companies.



                                       59
<PAGE>   573


         These various products may be used to adjust the risk and return
characteristics of each Fund's investments. These various products may increase
or decrease exposure to security prices, interest rates, commodity prices, or
other factors that affect security values, regardless of the issuer's credit
risk. If market conditions do not perform consistent with expectations, the
performance of each Fund would be less favorable than it would have been if
these products were not used. In addition, losses may occur if counterparties
involved in transactions do not perform as promised. These products may expose
the Fund to potentially greater return as well as potentially greater risk of
loss than more traditional fixed income investments.

PERCS*
   

         The Equity Funds may invest in Preferred Equity Redemption Cumulative
Stock ("PERCS") which is a form of convertible preferred stock that actually has
more of an equity component than it does fixed income characteristics. These
instruments permit companies to raise capital via a surrogate for common equity.
PERCS are preferred stock which convert to common stock after a specified period
of time, usually three years, and are considered the equivalent of equity by the
ratings agencies. Issuers pay holders a substantially higher dividend yield than
that on the underlying common, and in exchange, the holder's appreciation is
capped, usually at about 30 percent. PERCS are callable at any time. The PERC is
mandatorily convertible into common stock, but is callable at any time at an
initial call price that reflects a substantial premium to the stock's issue
price. PERCS offer a higher dividend than that available on the common stock,
but in exchange the investors agree to the company placing a cap on the
potential price appreciation. The call price declines daily in an amount that
reflects the incremental dividend that holders enjoy. PERCS are listed on an
exchange where the common stock is listed.
    

   
         *PERCS is a registered trademark of Morgan Stanley, which does not
sponsor and is in no way affiliated with One Group.
    

PREFERRED STOCK

         Preferred stock is a class of stock that generally pays dividends at a
specified rate and has preference over common stock in the payment of dividends
and liquidation. Preferred stock generally does not carry voting rights. As with
all equity securities, the price of preferred stock fluctuates based on changes
in a company's financial condition and on overall market and economic
conditions.

REAL ESTATE INVESTMENT TRUSTS ("REITS")

         Certain of the Funds may invest in equity interests or debt obligations
issued by REITs. REITs are pooled investment vehicles which invest primarily in
income producing real estate or real estate related loans or interest. REITs are
generally classified as equity REITs, mortgage REITs or a combination of equity
and mortgage REITs. Equity REITs invest the majority of their assets directly in
real property and derive income primarily from the collection of rents. Equity
REITs can also realize capital gains by selling property that has appreciated in
value. Mortgage REITs invest the majority of


                                       60
<PAGE>   574

their assets in real estate mortgages and derive income from the collection of
interest payments. Similar to investment companies, REITs are not taxed on
income distributed to shareholders provided they comply with several
requirements of the Code. A Fund will indirectly bear its proportionate share of
expenses incurred by REITs in which a Fund invests in addition to the expenses
incurred directly by a Fund.

         Investing in REITs involves certain unique risks in addition to those
risks associated with investing in the real estate industry in general. Equity
REITs may be affected by changes in the value of the underlying property owned
by the REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, are
subject to heavy cash flow dependency, default by borrowers and
self-liquidation. REITs are also subject to the possibilities of failing to
qualify for tax free pass-through of income under the Code and failing to
maintain their exemption from registration under the Act.

         REITs (especially mortgage REITs) are also subject to interest rate
risks. When interest rates decline, the value of a REIT's investment in fixed
rate obligations can be expected to rise. Conversely, when interest rates rise,
the value of a REIT's investment in fixed rate obligations can be expected to
decline. In contrast, as interest rates on adjustable rate mortgage loans are
reset periodically, yields on a REIT's investment in such loans will gradually
align themselves to fluctuate less dramatically in response to interest rate
fluctuations than would investments in fixed rate obligations.

         Investment in REITs involves risks similar to those associated with
investing in small capitalization companies. REITs may have limited financial
resources, may trade less frequently and in a limited volume and may be subject
to more abrupt or erratic price movements than larger company securities.
Historically, small capitalization stocks, such as REITs, have been more
volatile in price than the larger capitalization stocks included in the S&P
Index of 500 Common Stocks.

REPURCHASE AGREEMENTS

         Under the terms of a repurchase agreement, a Fund would acquire
securities from a seller, subject to the seller's agreement to repurchase such
securities at a mutually agreed-upon date and price. The repurchase price would
generally equal the price paid by the Fund plus interest negotiated on the basis
of current short-term rates, which may be more or less than the rate on the
underlying portfolio securities. The seller under a repurchase agreement will be
required to maintain the value of collateral held pursuant to the agreement at
not less than the repurchase price (including accrued interest).

         If the seller were to default on its repurchase obligation or become
insolvent, the Fund holding such obligation would suffer a loss to the extent
that the proceeds from a sale of the underlying portfolio securities were less
than the repurchase price under the agreement, or to the extent that the
disposition of such securities by the Fund were delayed pending court action.
Additionally, there is no controlling legal precedent under U.S. law and there
may be no controlling legal precedents under the laws of certain foreign
jurisdictions confirming that a Fund would be entitled, as against a claim by
such 


                                       61
<PAGE>   575

seller or its receiver or trustee in bankruptcy, to retain the underlying
securities, although (with respect to repurchase agreements subject to U.S. law)
the Board of Trustees of the Trust believes that, under the regular procedures
normally in effect for custody of a Fund's securities subject to repurchase
agreements and under federal laws, a court of competent jurisdiction would rule
in favor of the Trust if presented with the question. Securities subject to
repurchase agreements will be held by the Trust's custodian or another qualified
custodian or in the Federal Reserve/Treasury book-entry system. Repurchase
agreements are considered by the SEC to be loans by a Fund under the 1940 Act.

   
Repurchase Agreement Counterparties. For Funds other than the International
Funds, repurchase counterparties include Federal Reserve member banks with
assets in excess of $1 billion and registered broker dealers which Banc One
Investment Advisors or, in the case of the High Yield Bond Fund, the High Yield
Sub-Advisor deems creditworthy under guidelines approved by the Board of
Trustees. In the case of the International Funds, repurchase counterparties
include banks or foreign banks with total assets in excess of $1 billion or
broker-dealers which may or may not be registered, which Banc One Investment
Advisors, or in the case of the International Equity Index Fund, the
International Sub-Advisor, deems creditworthy under guidelines approved by the
Board of Trustees.
    

REVERSE REPURCHASE AGREEMENTS

         Funds may borrow money for temporary purposes by entering into reverse
repurchase agreements. Pursuant to such agreements, a Fund would sell portfolio
securities to financial institutions such as banks and broker-dealers, and agree
to repurchase them at a mutually agreed-upon date and price. A Fund would enter
into reverse repurchase agreements only to avoid otherwise selling securities
during unfavorable market conditions to meet redemptions. At the time a Fund
entered into a reverse repurchase agreement, it would place in a segregated
custodial account assets, such as cash or liquid securities consistent with the
Fund's investment restrictions and having a value equal to the repurchase price
(including accrued interest), and would subsequently monitor the account to
ensure that such equivalent value was maintained. Reverse repurchase agreements
involve the risk that the market value of the securities sold by a Fund may
decline below the price at which the Fund is obligated to repurchase the
securities. Reverse repurchase agreements are considered by the SEC to be
borrowings by a Fund under the 1940 Act.

RESTRICTED SECURITIES

         Some of the Funds may invest in commercial paper issued in reliance on
the exemption from registration afforded by Section 4(2) of the Securities Act
of 1933 and other restricted securities. Section 4(2) commercial paper is
restricted as to disposition under federal securities law and is generally sold
to institutional investors, such as the Funds, who agree that they are
purchasing the paper for investment purposes and not with a view to public
distribution. Any resale by the purchaser must be in an exempt transaction.
Section 4(2) commercial paper is normally resold to other institutional


                                       62
<PAGE>   576

investors like the Funds through or with the assistance of the issuer or
investment dealers who make a market in Section 4(2) commercial paper, thus
providing liquidity. The Funds believe that Section 4(2) commercial paper and
possibly certain other restricted securities which meet the criteria for
liquidity established by the Trustees are quite liquid. The Funds intend,
therefore, to treat restricted securities that meet the liquidity criteria
established by the Board of Trustees, including Section 4(2) commercial paper
and Rule 144A Securities, as determined by Banc One Investment Advisors, as
liquid and not subject to the investment limitation applicable to illiquid
securities.

   
         The ability of the Trustees to determine the liquidity of certain
restricted securities is permitted under a SEC Staff position set forth in the
adopting release for Rule 144A under the Securities Act of 1933 ("RULE 144A").
Rule 144A is a nonexclusive safe-harbor for certain secondary market
transactions involving securities subject to restrictions on resale under
federal securities laws. Rule 144A provides an exemption from registration for
resales of otherwise restricted securities to qualified institutional buyers.
Rule 144A was expected to further enhance the liquidity of the secondary market
for securities eligible for resale. The Funds believe that the Staff of the SEC
has left the question of determining the liquidity of all restricted securities
to the Trustees. The Trustees have directed Banc One Investment Advisors to
consider the following criteria in determining the liquidity of certain
restricted securities:
    

         - the frequency of trades and quotes for the security;

         - the number of dealers willing to purchase or sell the security and
the number of other potential buyers;

         - dealer undertakings to make a market in the security; and

         - the nature of the security and the nature of the marketplace trades.

         Certain Section 4(2) commercial paper programs cannot rely on Rule 144A
because, among other things, they were established before the adoption of the
rule. However, the Trustees may determine for purposes of the Trust's liquidity
requirements that an issue of 4(2) commercial paper is liquid if the following
conditions, which are set forth in a 1994 SEC no-action letter, are met:

         - The 4(2) paper must not be traded flat or in default as to principal
or interest;

         - The 4(2) paper must be rated in one of the two highest rating
categories by a least two NRSROS, or if only one NRSRO rates the security, by
that NRSRO, or if unrated, is determined by Banc One Investment Advisors or the
applicable Sub-Advisor to be of equivalent quality; and

         - Banc One Investment Advisors or the applicable Sub-Advisor must
consider the trading market for the specific security, taking into account all
relevant factors, including but not limited, to whether the paper is the subject
of a commercial paper program that is administered by an issuing and paying
agent bank and for which there exists a dealer 


                                       63
<PAGE>   577

willing to make a market in that paper, or is administered by a direct issuer
pursuant to a direct placement program; and

         - Banc One Investment Advisors or the applicable Sub-Advisor shall
monitor the liquidity of the 4(2) commercial paper purchased and shall report to
the Board of Trustees promptly if any such securities are no longer determined
to be liquid if such determination causes a Fund to hold more than 15% (10% for
Money Market Funds) of its net assets in illiquid securities in order for the
Board of Trustees to consider what action, if any, should be taken on behalf of
The One Group, unless Banc One Investment Advisors or the applicable Sub-Advisor
is able to dispose of illiquid assets in an orderly manner in an amount that
reduces the Fund's holdings of illiquid assets to less than 15% (10% for Money
Market Funds) of its net assets; and

         - Banc One Investment Advisors or the applicable Sub-Advisor shall
report to the Board of Trustees on the appropriateness of the purchase and
retention of liquid restricted securities under these Guidelines no less
frequently that quarterly.

SECURITIES LENDING

         In order to generate additional income, each of the Funds, except the
Funds of Funds, may lend up to 33 1/3% of the securities in which they are
invested pursuant to agreements requiring that the loan be continuously secured
by cash, securities of the U.S. government or its agencies, shares of an
investment trust or mutual fund, letters of credit or any combination of cash,
such securities, shares, or letters of credit as collateral equal at all times
to at least 100% of the market value plus accrued interest on the securities
lent. The Funds will continue to receive interest on the securities lent while
simultaneously seeking to earn interest on the investment of cash collateral in
U.S. government securities, shares of an investment trust or mutual fund, or
commercial paper, repurchase agreements, variable and floating rate instruments,
restricted securities, asset-backed securities, and the other types of
investments permitted by the applicable Fund's prospectus. Collateral is marked
to market daily to provide a level of collateral at least equal to the market
value of the 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 only be made to borrowers
deemed by Banc One Investment Advisors to be of good standing under guidelines
established by the Trust's Board of Trustees and when, in the judgment of Banc
One Investment Advisors, the consideration which can be earned currently from
such securities loans justifies the attendant risk. Loans are subject to
termination by the Funds or the borrower at any time, and are therefore, not
considered to be illiquid investments.

SHORT-TERM FUNDING AGREEMENTS

   
         Some Funds may, in order to enhance yield, make limited investments in
short-term funding agreements issued by banks and highly rated U.S. insurance
companies. Short-term funding agreements issued by insurance companies are
sometimes referred to as Guaranteed Investment Contracts ("GICs"), while those
issued by banks are referred to as Bank Investment Contracts ("BICs"). Pursuant
to such agreements, the 
    


                                       64
<PAGE>   578

Funds make cash contributions to a deposit account at a bank or insurance
company. The bank or insurance company then credits to the Funds on a monthly
basis guaranteed interest at either a fixed, variable or floating rate. These
contracts are general obligations of the issuing bank or insurance company
(although they may be the obligations of an insurance company separate account)
and are paid from the general assets of the issuing entity.

         The Funds will purchase short-term funding agreements only from banks
and insurance companies which, at the time of purchase, are rated in one of the
three highest rating categories and have assets of $1 billion or more.
Generally, there is no active secondary market in short-term funding agreements.
Therefore, short-term funding agreements may be considered by the Funds to be
illiquid investments. To the extent that a short-term funding agreement is
determined to be illiquid, such agreements will be acquired by the Funds only
if, at the time of purchase, no more than 15% of the Fund's net assets (10% of
the Money Market Fund's net assets) will be invested in short-term funding
agreements and other illiquid securities.

SPDRS

   
         Certain Funds may invest in Standard & Poor's Depository Receipts
("SPDRS"). SPDRs are interests in unit investment trusts. Such investment trusts
invest in a securities portfolio that includes substantially all of the common
stocks (in substantially the same weights) as the common stocks included in a
particular Standard Poor's Index such as the S&P 500. SPDRs are traded on the
American Stock Exchange, but may not be redeemed. The results of SPDRs will not
match the performance of the designated S&P Index due to reductions in the
SPDRs' performance attributable to transaction and other expenses, including
fees paid by the SPDR to service providers. SPDRs distribute dividends on a
quarterly basis.
    

         SPDRs are not actively managed. Rather, a SPDR's objective is to track
the performance of a specified index. Therefore, securities may be purchased,
retained and sold by SPDRs at times when an actively managed trust would not do
so. As a result, you can expect greater risk of loss (and a correspondingly
greater prospect of gain) from changes in the value of securities that are
heavily weighted in the index than would be the case if SPDR was not fully
invested in such securities. Because of this, a SPDRs price can be volatile, a
Fund may sustain sudden, and sometimes substantial, fluctuations in the value of
its investment in SPDRs.

         A Fund will limit its investments in SPDRs to 5% of the Fund's total
assets and 3% of the outstanding voting securities of the SPDRs issuer.
Moreover, a Fund's investments in SPDRs will not exceed 10% of the Fund's total
assets, when aggregated with all other investments in investment companies.

STRUCTURED INSTRUMENTS

         Structured instruments are debt securities issued by agencies of the
U.S. government (such as Ginnie Mae, Fannie Mae, and Freddie Mac), banks,
corporations, 


                                       65
<PAGE>   579

and other business entities whose interest and/or principal payments are indexed
to certain specific foreign currency exchange rates, interest rates, or one or
more other reference indices. Structured instruments frequently are assembled in
the form of medium-term notes, but a variety of forms are available and may be
used in particular circumstances. Structured instruments are commonly considered
to be derivatives.

         The terms of such structured instruments provide that their principal
and/or interest payments are adjusted upwards or downwards to reflect changes in
the reference index while the structured instruments are outstanding. In
addition, the reference index may be used in determining when the principal is
redeemed. As a result, the interest and/or principal payments that may be made
on a structured product may vary widely, depending on a variety of factors,
including the volatility of the reference index and the effect of changes in the
reference index on principal and/or interest payment.

         While structured instruments may offer the potential for a favorable
rate of return from time to time, they also entail certain risks. Structured
instruments may be less liquid than other debt securities, and the price of
structured instruments may be more volatile. If the value of the reference index
changes in a manner other than that expected by Banc One Investment Advisors or
the applicable Sub-Advisor, principal and/or interest payments on the structured
instrument may be substantially less than expected. In addition, although
structured instruments may be sold in the form of a corporate debt obligation,
they may not have some of the protection against counterparty default that may
be available with respect to publicly traded debt securities (i.e., the
existence of a trust indenture). In that respect, the risks of default
associated with structured instruments may be similar to those associated with
swap contracts. See "Swaps, Caps and Floors."

         The Funds will invest only in structured securities that are consistent
with each Fund's investment objective, policies and restrictions and Banc One
Investment Advisors' or the applicable Sub-Advisor's outlook on market
conditions. In some cases, depending on the terms of the reference index, a
structured instrument may provide that the principal and/or interest payments
may be adjusted below zero; however, the Funds will not invest in structured
instruments if the terms of the structured instrument provide that the Funds may
be obligated to pay more than their initial investment in the structured
instrument, or to repay any interest or principal that has already been
collected or paid back.

         Structured instruments that are registered under the federal securities
laws may be treated as liquid. In addition, many structured instruments may not
be registered under the federal securities laws. In that event, a Fund's ability
to resell such a structured instrument may be more limited than its ability to
resell other Fund securities. The Funds will treat such instruments as illiquid,
and will limit their investments in such instruments to no more than 15% of each
Fund's net assets, when combined with all other illiquid investments of each
Fund.
   
    


                                       66
<PAGE>   580

SWAPS, CAPS AND FLOORS

   
         Certain of the Funds may enter into swaps, caps, and floors on various
securities (such as U.S. government securities), securities indexes, interest
rates, prepayment rates, foreign currencies or other financial instruments or
indexes, in order to protect the value of the Fund from interest rate
fluctuations and to hedge against fluctuations in the floating rate market in
which the Fund's investments are traded, for both hedging and non-hedging
purposes. While swaps, caps, and floors (sometimes hereinafter collectively
referred to as "SWAP CONTRACTS") are different from futures contracts (and
options on futures contracts) in that swap contracts are individually negotiated
with specific counterparties, the Funds will use swap contracts for purposes
similar to the purposes for which they use options, futures, and options on
futures. Those uses of swap contracts (i.e., risk management and hedging)
present the Funds with risks and opportunities similar to those associated with
options contracts, futures contracts, and options on futures. See "Futures
Contracts" and "Risk Factors in Futures Contracts."
    

         The Funds may enter into these transactions to manage their exposure to
changing interest rates and other market factors. Some transactions may reduce
each Fund's exposure to market fluctuations while others may tend to increase
market exposure.

         Swap contracts typically involve an exchange of obligations by two
sophisticated parties. For example, in an interest rate swap, the Fund may
exchange with another party their respective rights to receive interest, such as
an exchange of fixed rate payments for floating rate payments. Currency swaps
involve the exchange of respective rights to make or receive payments in
specified currencies. Mortgage swaps are similar to interest rate swaps in that
they represent commitments to pay and receive interest. The notional principal
amount, however, is tied to a reference pool or pools of mortgages.

         Caps and floors are variations on swaps. The purchase of a cap entitles
the purchaser to receive a principal amount from the party selling the cap to
the extent that a specified index exceeds a predetermined interest rate or
amount. The purchase of an interest rate floor entitles the purchaser to receive
payments on a notional principal amount from the party selling the floor to the
extent that a specified index falls below a predetermined interest rate or
amount. Caps and floors are similar in many respects to over-the-counter options
transactions, and may involve investment risks that are similar to those
associated with options transactions and options on futures contracts.

         Because swap contracts are individually negotiated, they remain the
obligation of the respective counterparties, and there is a risk that a
counterparty will be unable to meet its obligations under a particular swap
contract. If a counterparty defaults on a swap contract with a Fund, the Fund
may suffer a loss. To address this risk, each Fund will usually enter into
interest rate swaps on a net basis, which means that the two payment streams
(one from the Fund to the counterparty, one to the Fund from the counterparty)
are netted out, with the Fund receiving or paying, as the case may be, only the
net amount of the two payments. Interest rate swaps do not involve the delivery
of securities, other underlying assets, or principal, except for the purposes of
collateralization as discussed below. Accordingly, the risk of loss with respect
to interest rate swaps entered into on a 


                                       67
<PAGE>   581

net basis would be limited to the net amount of the interest payments that the
Fund is contractually obligated to make. If the other party to an interest rate
swap defaults, the Fund's risk of loss consists of the net amount of interest
payments that a Fund is contractually entitled to receive. In addition, the Fund
may incur a market value adjustment on securities held upon the early
termination of the swap. To protect against losses related to counterparty
default, the Funds may enter into swaps that require transfers of collateral for
changes in market value. In contrast, currency swaps and other types of swaps
may involve the delivery of the entire principal value of one designated
currency or financial instrument in exchange for the other designated currency
or financial instrument. Therefore, the entire principal value of such swaps may
be subject to the risk that the other party will default on its contractual
delivery obligations.

In addition, because swap contracts are individually negotiated and ordinarily
non-transferable, there also may be circumstances in which it would be
impossible for a Fund to close out its obligations under the swap contract prior
to its maturity. Under such circumstances, the Fund might be able to negotiate
another swap contract with a different counterparty to offset the risk
associated with the first swap contract. Unless the Fund is able to negotiate
such an offsetting swap contract, however, the Fund could be subject to
continued adverse developments, even after Banc One Investment Advisors or the
applicable Sub-Advisor has determined that it would be prudent to close out or
offset the first swap contract.

         The Funds (other than the High Yield Bond Fund) will not enter into any
mortgage swap, interest rate swap, cap or floor transaction unless the unsecured
commercial paper, senior debt, or the claims paying ability of the other party
thereto is rated in one of the top two rating categories by at least one NRSRO,
or if unrated, determined by Banc One Investment Advisors to be of comparable
quality.

         The use of swaps involves investment techniques and risks different
from and potentially greater than those associated with ordinary Fund securities
transactions. If Banc One Investment Advisors or the applicable Sub-Advisor is
incorrect in its expectations of market values, interest rates, or currency
exchange rates, the investment performance of the Funds would be less favorable
than it would have been if this investment technique were not used. In addition,
in certain circumstances entry into a swap contract that substantially
eliminates risk of loss and the opportunity for gain in an "appreciated
financial position" will accelerate gain to the Funds.

         The Staff of the SEC is presently considering its position with respect
to swaps, caps and floors as senior securities. Pending a determination by the
Staff, the Funds will either treat swaps, caps and floors as being subject to
their senior securities restrictions or will refrain from engaging in swaps,
caps and floors. Once the Staff has expressed a position with respect to swaps,
caps and floors, the Funds intend to engage in swaps, caps and floors, if at
all, in a manner consistent with such position. To the extent the net amount of
an interest rate or mortgage swap is held in a segregated account, consisting of
cash or liquid, high grade debt securities, the Funds and Banc One Investment
Advisors believe that swaps do not constitute senior securities under the
Investment Company Act of 1940 and, accordingly, will not treat them as being
subject to each Fund's borrowing 


                                       68
<PAGE>   582

restrictions. The net amount of the excess, if any, of each Fund's obligations
over its entitlements with respect to each interest rate swap will be accrued on
a daily basis and an amount of cash or liquid securities having an aggregate net
asset value at least equal to the accrued excess will be maintained in a
segregated account by the Funds' Custodian. Each of the Bond Funds generally
will limit their investments in swaps, caps and floors to 25% of its total
assets.

TREASURY RECEIPTS

   
         Certain of the Funds may purchase interests in separately traded
interest and principal component parts of U.S. Treasury obligations that are
issued by banks or brokerage firms and are created by depositing U.S. Treasury
notes and U.S. Treasury bonds into a special account at a custodian bank.
Receipts include Treasury Receipts ("TRs"), Treasury Investment Growth Receipts
("TIGRS"), and Certificates of Accrual on Treasury Securities ("CATS").
    

U.S. TREASURY OBLIGATIONS
   
         The Funds may invest in bills, notes and bonds issued by the U.S.
Treasury and separately traded interest and principal component parts of such
obligations that are transferable through the Federal book-entry system known as
Separately Traded Registered Interest and Principal Securities ("STRIPS") and
Coupon Under Book Entry Safekeeping ("CUBES"). The Funds may also invest in
Inflation Indexed Treasury Obligations.
    


                                       69
<PAGE>   583

   
VARIABLE AND FLOATING RATE INSTRUMENTS
    

         Certain obligations purchased by some of the Funds may carry variable
or floating rates of interest, may involve a conditional or unconditional demand
feature and may include variable amount master demand notes.

         VARIABLE AMOUNT MASTER DEMAND NOTES are demand notes that permit the
indebtedness thereunder to vary and provide for periodic adjustments in the
interest rate according to the terms of the instrument. Because master demand
notes are direct lending arrangements between a Fund and the issuer, they are
not normally traded. Although there is no secondary market in the notes, a Fund
may demand payment of principal and accrued interest. While the notes are not
typically rated by credit rating agencies, issuers of variable amount master
demand notes (which are normally manufacturing, retail, financial, brokerage,
investment banking and other business concerns) must satisfy the same criteria
as set forth above for commercial paper. Banc One Advisers or the Sub-Advisor
will consider the earning power, cash flow, and other liquidity ratios of the
issuers of such notes and will continuously monitor their financial status and
ability to meet payment on demand. In determining average weighted portfolio
maturity, a variable amount master demand note will be deemed to have a maturity
equal to the period of time remaining until the principal amount can be
recovered from the issuer through demand.

   
         Some of the Funds subject to their investment objective policies and
restrictions, may acquire VARIABLE AND FLOATING RATE INSTRUMENTS. A variable
rate instrument is one whose terms provide for the adjustment of its interest
rate on set dates and which, upon such adjustment, can reasonably be expected to
have a market value that approximates its par value. Some of the Funds may
purchase EXTENDABLE COMMERCIAL NOTES. Extendable commercial notes are variable
rate notes which normally mature within a short period of time (e.g., 1 month)
but which may be extended by the issuer for a maximum maturity of thirteen
months.

         A floating rate instrument is one whose terms provide for the
adjustment of its interest rate whenever a specified interest rate changes and
which, at any time, can reasonably be expected to have a market value that
approximates its par value. Floating rate instruments are frequently not rated
by credit rating agencies; however, unrated variable and floating rate
instruments purchased by a Fund will be determined by Banc One Investment
Advisors or the applicable Sub-Advisor under guidelines established by the
Trust's Board of Trustees to be of comparable quality at the time of purchase to
rated instruments eligible for purchase under the Fund's investment policies. In
making such determinations, Banc One Investment Advisors or the applicable
Sub-Advisor will consider the earning power, cash flow and other liquidity
ratios of the issuers of such instruments (such issuers include financial,
merchandising, bank holding and other companies) and will continuously monitor
their financial condition. There may 
    


                                       70
<PAGE>   584

be no active secondary market with respect to a particular variable or floating
rate instrument purchased by a Fund. The absence of such an active secondary
market, could make it difficult for the Fund to dispose of the variable or
floating rate instrument involved in the event the issuer of the instrument
defaulted on its payment obligations, and the Fund could, for this or other
reasons, suffer a loss to the extent of the default. Variable or floating rate
instruments may be secured by bank letters of credit or other assets. A Fund
will purchase a variable or floating rate instrument to facilitate portfolio
liquidity or to permit investment of the Fund's assets at a favorable rate of
return.

         With respect to the Money Market Funds and the Institutional Money
Market Funds, variable or floating rate instruments with stated maturities of
more than 397 days may, under the Securities and Exchange Commission's amortized
cost rule, Rule 2a-7 under the 1940 Act, be deemed to have shorter maturities as
follows:

         (1) Adjustable Rate Government Securities. A Government Security which
is a Variable Rate Security where the variable rate of interest is readjusted no
less frequently than every 762 days shall be deemed to have a maturity equal to
the period remaining until the next readjustment of the interest rate. A
Government Security which is a Floating Rate Security shall be deemed to have a
remaining maturity of one day.

         (2) Short-Term Variable Rate Securities. A Variable Rate Security, the
principal amount of which, in accordance with the terms of the security, must
unconditionally be paid in 397 calendar days or less shall be deemed to have
maturity equal to the earlier of the period remaining until the next
readjustment of the interest rate or the period remaining until the principal
amount can be recovered through demand.

         (3) Long-Term Variable Rate Securities. A Variable Rate Security, the
principal amount of which is scheduled to be paid in more than 397 days, that is
subject to a Demand Feature shall be deemed to have a maturity equal to the
longer of the period remaining until the next readjustment of the interest rate
or the period remaining until the principal amount can be recovered through
demand.

         (4) Short-Term Floating Rate Securities. A Floating Rate Security, the
principal amount of which, in accordance with the terms of the security, must
unconditionally be paid in 397 calendar days or less shall be deemed to have a
maturity of one day.

         (5) Long-Term Floating Rate Securities. A Floating Rate Security, the
principal amount of which is scheduled to be paid in more than 397 days, that is
subject to a demand feature, shall be deemed to have a maturity equal to the
period remaining until the principal amount can be recovered through demand.

         As used above, a note is "subject to a demand feature" where the Fund
is entitled to receive the principal amount of the note either at any time on no
more than thirty days' notice or at specified intervals not exceeding 397
calendar days and upon no more than 30 days notice.

         LIMITATIONS ON THE USE OF VARIABLE AND FLOATING RATE NOTES. Variable
and floating rate instruments for which no readily available market exists will
be purchased in 


                                       71
<PAGE>   585

an amount which, together with securities with legal or contractual restrictions
on resale or for which no readily available market exists (including repurchase
agreements providing for settlement more than seven days after notice), exceeds
10% (with respect to the Money Market and Institutional Money Market Funds) or
15% (with respect to all Funds, other than the Money Market and Institutional
Money Market Funds, which can purchase such notes) of the Fund's net assets only
if such instruments are subject to a demand feature that will permit the Fund to
demand payment of the principal within seven days after demand by the Fund.
There is no limit on the extent to which a Fund may purchase demand instruments
that are not illiquid. If not rated, such instruments must be found by Banc One
Investment Advisors or the Sub-Advisor, under guidelines established by the
Trust's Board of Trustees, to be of comparable quality to instruments that are
rated high quality. A rating may be relied upon only if it is provided by a
nationally recognized statistical rating organization that is not affiliated
with the issuer or guarantor of the instruments. For a description of the rating
symbols of S&P, Moody's, and Fitch used in this paragraph, see the Appendix. The
above Funds may also invest in Canadian Commercial Paper which is commercial
paper issued by a Canadian corporation or a Canadian counterpart of a U.S.
corporation and in Europaper which is U.S. dollar denominated commercial paper
of a foreign issuer.

WARRANTS

         Warrants are securities, typically issued with preferred stock or
bonds, that give the holder the right to buy a proportionate amount of common
stock at a specified price, usually at a price that is higher than the market
price at the time of issuance of the warrant. The right may last for a period of
years or indefinitely.

WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS

         Some Funds may purchase securities on a "when-issued" and forward
commitment basis. When a Fund agrees to purchase securities, the Fund's
custodian will set aside cash or liquid portfolio securities equal to the amount
of the commitment in a separate account. The Funds may purchase securities on a
when-issued basis when deemed by Banc One Investment Advisors or the applicable
Sub-Advisor to present attractive investment opportunities. When-issued
securities are purchased for delivery beyond the normal settlement date at a
stated price and yield, thereby involving the risk that the yield obtained will
be less than that available in the market at delivery. The Funds generally will
not pay for such securities or earn interest on them until received. Although
the purchase of securities on a when-issued basis is not considered to be
leveraging, it has the effect of leveraging. When Banc One Investment Advisors
or the applicable Sub- Advisor purchases a when-issued security, the Custodian
will set aside cash or liquid securities to satisfy the purchase commitment. In
such a case, a Fund may be required subsequently to place additional assets in
the separate account in order to assure that the value of the account remains
equal to the amount of the Fund's commitment. The Fund's net assets may
fluctuate to a greater degree when it sets aside portfolio securities to cover
such purchase commitments than when it sets aside cash. In addition, when a Fund
engages in "when-issued" transactions, it relies on the seller to 


                                       72
<PAGE>   586

consummate the trade. Failure of the seller to do so may result in the Fund's
incurring a loss or missing the opportunity to obtain a price considered to be
advantageous.

         In a forward commitment transaction, the Funds contract to purchase
securities for a fixed price at a future date beyond customary settlement time.
The Funds are required to hold and maintain in a segregated account until the
settlement date, cash, U.S. government securities or liquid high-grade debt
obligations in an amount sufficient to meet the purchase price. Alternatively,
the Funds may enter into offsetting contracts for the forward sale of other
securities that they own. The purchase of securities on a when-issued or forward
commitment basis involves a risk of loss if the value of the security to be
purchased declines prior to the settlement date.

         Limitations on the Use of When Issued Securities and Forward
Commitments. No Fund intends to purchase "when-issued" securities for
speculative purposes but only for the purpose of acquiring portfolio securities.
Because a Fund will set aside cash or liquid portfolio securities to satisfy its
purchase commitments in the manner described, the Fund's liquidity and the
ability of Banc One Investment Advisors and the Sub-Advisor to manage the Fund
might, as described in the Prospectuses, be affected in the event its
commitments to purchase when-issued securities ever exceeded 40% of the value of
its assets. Commitments to purchase when-issued securities will not, under
normal market conditions, exceed 25% of a Fund's total assets, and a commitment
will not exceed 90 days. A Fund may dispose of a when-issued security or forward
commitment prior to settlement if Banc One Investment Advisors or the applicable
Sub- Advisor deems it appropriate to do so.



   
INVESTMENT RESTRICTIONS
    

   
         The following investment restrictions are FUNDAMENTAL and may be
changed with respect to a particular Fund only by a vote of a majority of the
outstanding Shares of that Fund. See "ADDITIONAL INFORMATION--Miscellaneous" in
this Statement of Additional Information.
    

         Each of the Equity Funds may not:

         1. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities, and, if
consistent with a Fund's investment objective and policies, repurchase
agreements involving such securities) if as a result more than 5% of the total
assets of a Fund would be invested in the securities of such issuer or a Fund
would own more than 10% of the outstanding voting securities of such issuer.
This restriction applies to 75% of a Fund's assets. With respect to The One
Group Equity Index Fund, no more than 10% of the Fund's assets may be invested
in securities issued or guaranteed by the United States, its agencies or
instrumentalities. For purposes of these limitations, a security is considered
to be issued by the government entity whose assets and revenues guarantee or
back the security. With respect to private 


                                       73
<PAGE>   587

activity bonds or industrial development bonds backed only by the assets and
revenues of a non-governmental user, such user would be considered the issuer.

         2. Purchase any securities that would cause more than 25% of the total
assets of a Fund to be invested in the securities of one or more issuers
conducting their principal business activities in the same industry, provided
that this information does not apply to investments in the obligations issued or
guaranteed by the U.S. government or its agencies and instrumentalities and
repurchase agreements involving such securities. For purposes of this limitation
(i) utilities will be divided according to their services (for example, gas, gas
transmission, electric and telephone will each be considered a separate
industry); and (ii) wholly-owned finance companies will be considered to be in
the industries of their parents if their activities are primarily related to
financing the activities of their parents.

         3. Make loans, except that a Fund may (i) purchase or hold debt
instruments in accordance with its investment objective and policies; (ii) enter
into repurchase agreements; and (iii) engage in securities lending as described
in the Prospectus and in this Statement of Additional Information.

         Each of the Bond Funds may not:

         1. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities, and, if
consistent with a Fund's investment objective and policies, repurchase
agreements involving such securities) if as a result more than 5% of the total
assets of a Fund would be invested in the securities of such issuer or a Fund
would own more than 10% of the outstanding voting securities of such issuer.
This restriction applies to 75% of a Fund's assets. For purposes of these
limitations, a security is considered to be issued by the government entity
whose assets and revenues guarantee or back the security. With respect to
private activity bonds or industrial development bonds backed only by the assets
and revenues of a non-governmental user, such user would be considered the
issuer.

         2. Purchase any securities that would cause more than 25% of the total
assets of a Fund to be invested in the securities of one or more issuers
conducting their principal business activities in the same industry, provided
that this limitation does not apply to investments in the obligations issued or
guaranteed by the U.S. government or its agencies and instrumentalities and
repurchase agreements involving such securities. For purposes of this limitation
(i) utilities will be divided according to their services (for example, gas, gas
transmission, electric and telephone will each be considered a separate
industry); and (ii) wholly-owned finance companies will be considered to be in
the industries of their parents if their activities are primarily related to
financing the activities of their parents.

         3. Make loans, except that a Fund may (i) purchase or hold debt
instruments in accordance with its investment objective and policies; (ii) enter
into repurchase agreements; and (iii) engage in securities lending as described
in the Prospectus and in this Statement of Additional Information.



                                       74
<PAGE>   588

         Each of the Fund of Funds may not:

         1. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities, securities
of regulated investment companies, and, if consistent with a Fund's investment
objective and policies, repurchase agreements involving such securities) if as a
result more than 5% of the total assets of a Fund would be invested in the
securities of such issuer or a Fund would own more than 10% of the outstanding
voting securities of such issuer. This restriction applies to 75% of a Fund's
assets. For purposes of these limitations, a security is considered to be issued
by the government entity whose assets and revenues guarantee or back the
security. With respect to private activity bonds or industrial development bonds
backed only by the assets and revenues of a non-governmental user, such user
would be considered the issuer.

   
         2. Purchase any securities that would cause more than 25% of the total
assets of a Fund to be invested in the securities of one or more issuers
conducting their principal business activities in the same industry, except for
investments in One Group funds, provided that this limitation does not apply to
investments in obligations issued or guaranteed by the U.S. government or its
agencies and instrumentalities and repurchase agreements involving such
services. For purposes of this limitation (i) utilities will be divided
according to their services (for example, gas, gas transmission, electric and
telephone will each be considered a separate industry); and (ii) wholly-owned
finance companies will be considered to be in the industries of their parents if
their activities are primarily related to financing the activities of their
parents.
    

         3. Make loans, except that a Fund may (i) purchase or hold debt
instruments in accordance with its investment objective and policies; (ii) enter
into repurchase agreements; and (iii) engage in securities lending as described
in the Prospectus and in this Statement of Additional Information.

         Each of the Money Market Funds may not:

         1. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities, and, if
consistent with the Fund's investment objective and policies, repurchase
agreements involving such securities) if as a result more than 5% of the total
assets of a Fund would be invested in the securities of such issuer or a Fund
would own more than 10% of the outstanding voting securities of such issuer,
provided, however, that a Fund may invest up to 25% of its total assets without
regard to this restriction as permitted by applicable law and also provided that
with respect to the Ohio Municipal Money Market Fund, as to 50% of such Fund's
assets, the Fund may invest up to 25% of its assets in the securities of a
single issuer. With respect to remaining 50% of its total assets, the Ohio
Municipal Money Market Fund may not purchase the securities of any issuer if as
a result more than 5% of the total assets of the Fund would be invested in the
securities of such issuer. For purposes of these limitations, a security is
considered to be issued by the government entity whose assets and revenues
guarantee or back the security. With respect to private activity bonds or


                                       75
<PAGE>   589

industrial development bonds backed only by the assets and revenues of a
nongovernmental user, such user would be considered the issuer.

   
         2. Purchase any securities that would cause more than 25% of the total
assets of a Fund to be invested in the securities of one or more issuers
conducting their principal business activities in the same industry. With
respect to the Prime Money Market Fund, (i) this limitation does not apply to
investments in the obligations issued or guaranteed by the U.S. government or
its agencies and instrumentalities, domestic bank certificates of deposit or
bankers' acceptance and repurchase agreements involving such securities; (ii)
wholly-owned finance companies will be considered to be in the industries of
their parents if their activities are primarily related to financing the
activities of their parents; and (iii) utilities will be divided according to
their services (for example, gas, gas transmission, electric and telephone will
each be considered a separate industry.) With respect to the Prime Money Market
Fund, the Ohio Municipal Money Market Fund, the Michigan Municipal Money Market
Fund, and the Municipal Money Market Fund, this limitation shall not apply to
Municipal Securities or governmental guarantees of Municipal Securities; and
further provided, that for the purposes of this limitation only, private
activity bonds that are backed only by the assets and revenues of a
non-governmental user shall not be deemed to be Ohio Municipal Securities for
purposes of the Ohio Municipal Money Market Fund, nor Municipal Securities for
purposes of the Prime Money Market Fund and the Municipal Money Market Fund.
    

         3. Make loans, except that a Fund may (i) purchase or hold debt
instruments in accordance with its investment objective and policies; (ii) enter
into repurchase agreements; and (iii) engage in securities lending as described
in the Prospectus and in this Statement of Additional Information.

         With respect to the Institutional Money Market Funds:

         The Treasury Only Money Market Fund may not:

         1. Purchase securities other than U.S. Treasury bills, notes and other
U.S. obligations issued or guaranteed by the U.S. Treasury.

         2. Invest in any securities subject to repurchase agreements.

         The Government Money Market Fund may not:

         1. Purchase securities other than those issued or guaranteed by the
U.S. government or its agencies or instrumentalities, some of which may be
subject to repurchase agreements.

         Each of the Institutional Money Market Funds may not:

         1. Borrow money or issue senior securities, except that each Fund may
borrow from banks for temporary purposes in amounts up to 10% of the value of
the Fund's total assets at the time of such borrowing; or mortgage, pledge or
hypothecate any assets, except in connection with any such borrowing and in
amounts not in excess of the lesser 


                                       76
<PAGE>   590

of the dollar amounts borrowed or 10% of the value of the respective Fund's
total assets at the time of its borrowing.

         2. Purchase securities while borrowings (including reverse repurchase
agreements) exceed 5% of the respective Fund's net assets.

         3. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities and, if
consistent with such Fund's investment objective and policies, repurchase
agreements involving such securities) if as a result more than 5% of the total
assets of the Fund would be invested in the securities of such issuer or the
Fund would own more than 10% of the outstanding voting securities of such
issuer; provided, however, that a Fund may invest up to 25% of its total assets
without regard to this restriction as permitted by applicable law. For purposes
of these limitations, a security is considered to be issued by the government
entity whose assets and revenues guarantee or back the security. With respect to
private activity bonds or industrial development bonds backed only by the assets
and revenues of a non-governmental user, such user would be considered the
issuer.

         With respect to the Municipal Bond Funds:

         The Intermediate Tax-Free Bond Fund and the Municipal Income Fund may
not:

         1. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities, and, if
consistent with a Fund's investment objective and policies, repurchase
agreements involving such securities) if as a result more than 5% of the total
assets of a Fund would be invested in the securities of such issuer or a Fund
would own more than 10% of the outstanding voting securities of such issuer.
This restriction applies to 75% of a Fund's assets. For purposes of these
limitations, a security is considered to be issued by the government entity
whose assets and revenues guarantee or back the security. With respect to
private activity bonds or industrial development bonds backed only by the assets
and revenues of a non-governmental user, such user would be considered the
issuer.

         2. Purchase any securities that would cause more than 25% of the total
assets of a Fund to be invested in the securities of one or more issuers
conducting their principal business activities in the same industry, provided
that this limitation does not apply to Municipal Securities or governmental
guarantees of Municipal Securities, and with respect to the Municipal Income
Fund, housing authority obligations. For purposes of this limitation (i)
utilities will be divided according to their services (for example, gas, gas
transmission, electric and telephone will each be considered a separate
industry); and (ii) wholly-owned finance companies will be considered to be in
the industries of their parents if their activities are primarily related to
financing the activities of their parents.

   
         The Tax-Free Bond Fund, the Short-Term Municipal Bond Fund, the Arizona
Municipal Bond Fund, the West Virginia Municipal Bond, the Louisiana Municipal
Bond Fund, the Ohio Municipal Bond Fund, the Kentucky Municipal Bond Fund, and
the Michigan Municipal Bond Fund may not:
    



                                       77
<PAGE>   591

         1. Purchase securities of any issuer (except securities issued or
guaranteed by the United States, its agencies or instrumentalities, and, if
consistent with a Fund's investment objective and policies, repurchase
agreements involving such securities) if as a result more than 25% of the total
assets of a Fund would be invested in the securities of such issuer. This
restriction applies to 50% of a Fund's assets. With respect to the remaining 50%
of its total assets, a Fund may not purchase the securities of any issuer if as
a result more than 5% of the total assets of the Fund would be invested in the
securities of such Issuer. For purposes of these limitations, a security is
considered to be issued by the government entity whose assets and revenues
guarantee or back the security. With respect to private activity bonds or
industrial development bonds backed only by the assets and revenues of a
non-governmental user, such user would be considered the issuer.

   
         2. Purchase any securities (i) that would cause more than 25% of the
total assets of a Fund to be invested in the securities of one or more issuers
conducting their principal business activities in the same industry, provided
that this limitation does not apply to investments in obligations issued or
guaranteed by the U.S. government or its agencies and instrumentalities and
repurchase agreements involving such securities; and (ii) this limitation does
not apply to Municipal Securities or Ohio Municipal Securities, Kentucky
Municipal Securities, Arizona Municipal Securities, West Virginia Municipal
Securities, Louisiana Municipal Securities, and Michigan Municipal Securities.
For purposes of this limitation (i) utilities will be divided according to their
services (for example, gas, gas transmission, electric and telephone will each
be considered a separate industry); and (ii) wholly-owned finance companies will
be considered to be in the industries of their parents if their activities are
primarily related to financing the activities of their parents. In addition,
with respect to the Arizona Municipal Bond Fund and the West Virginia Municipal
Bond Fund, for purposes of this limitation only, private activity bonds that are
backed only by the assets and revenues of a non-governmental issued shall not be
deemed to be Municipal Securities or Arizona Municipal Securities (for the
Arizona Municipal Bond Fund) or West Virginia Securities (for the West Virginia
Municipal Bond Fund).
    

         None of the Municipal Bond Funds may:

         1. Make loans, except that a Fund may (i) purchase or hold debt
instruments in accordance with its investment objective and policies; (ii) enter
into repurchase agreements; and (iii) engage in securities lending as described
in this Prospectus and in the Statement of Additional Information.

         None of the Funds may:

         1. Purchase securities on margin, sell securities short, or participate
in a joint or joint and several basis in any securities trading account, except,
in the case of the Municipal Bond Funds, for use of short-term credit necessary
for clearance of purchases of portfolio securities.



                                       78
<PAGE>   592

         2. Underwrite the securities of other issuers except to the extent that
a Fund may be deemed to be an underwriter under certain securities laws in the
disposition of "restricted securities."

         3. Purchase or sell commodities or commodity contracts (including
futures contracts), except that for bona fide hedging and other permissible
purposes: (i) the Equity, Bond and International Equity Index Fund may purchase
or sell financial futures contracts and (except for the Treasury & Agency Fund)
may purchase call or put options on financial futures contracts, and (ii) the
International Equity Index Fund may purchase or sell foreign currency futures
contracts and foreign currency forward contracts, and may purchase put or call
options on foreign currency futures contracts and on foreign currencies on
appropriate U.S. exchanges, and may purchase or sell foreign currency on a spot
basis.

         4. Except for the Treasury & Agency Fund, purchase participation or
other direct interests in oil, gas or mineral exploration or development
programs (although investments by all Funds other than the U.S. Treasury
Securities Money Market, Treasury Money Market, Treasury Only Money Market and
Government Money Market Fund in marketable securities of companies engaged in
such activities are not hereby precluded).

         5. Invest in any issuer for purposes of exercising control or
management.

         6. Purchase securities of other investment companies except as
permitted by the 1940 Act and rules, regulations and applicable exemptive relief
thereunder.

         7. Purchase or sell real estate (however, each Fund except the Money
Market Funds may, to the extent appropriate to its investment objective,
purchase securities secured by real estate or interests therein or securities
issued by companies investing in real estate or interests therein).

         8. Borrow money or issue senior securities, except that each Fund may
borrow from banks or enter into reverse repurchase agreements for temporary
purposes in amounts up to 10% of the value of its total assets at the time of
such borrowing; or mortgage, pledge, or hypothecate any assets, except in
connection with any such borrowing and in amounts not in excess of the lesser of
the dollar amounts borrowed or 10% of the value of the Fund's total assets at
the time of its borrowing. A Fund will not purchase securities while its
borrowings (including reverse repurchase agreements) in excess of 5% of its
total assets are outstanding.

   
         In addition, the U.S. Treasury Securities Money Market, the Prime Money
Market and the Institutional Money Market Funds (except for the Cash Management
Funds) may not:
    

         1. Buy common stocks or voting securities.

   
         In addition, the U.S. Treasury Securities Money Market Fund, the Prime
Money Market Fund and the Government Money Market Fund may not:
    

                                       79
<PAGE>   593

         1. Buy state, municipal, or private activity bonds.

         The following investment restrictions are NON-FUNDAMENTAL except as
noted otherwise and therefore can be changed by the Board of Trustees without
prior shareholder approval.

         No Fund may:

   
         1. Invest in illiquid securities in an amount exceeding, in the
aggregate 15% of the Fund's net assets (10% of net assets for a Fund that is a
Money Market Fund or an Institutional Money Market Fund). An illiquid security
is a security which cannot be disposed of promptly (within seven days) and in
the usual course of business without a loss, and includes repurchase agreements
maturing in excess of seven days, time deposits with a withdrawal penalty,
non-negotiable instruments and instruments for which no market exists. (This
restriction is fundamental with respect to the Ohio Municipal Money Market
Fund.)
    

         2. Acquire the securities of registered open-end investment companies
or registered unit investment trusts in reliance on Section 12(d)(1)(F) or
12(d)(1)(G) of the 1940 Act, other than the Investor Growth Fund, the Investor
Growth & Income Fund, the Investor Conservative Growth Fund, the Investor
Balanced Fund, the Investor Aggressive Growth Fund, and the Investor Fixed
Income Fund.

   
         The foregoing percentages apply at the time of purchase of a security.
Banc One Investment Advisors or the applicable Sub-Advisor shall report to the
Board of Trustees promptly if any of a Fund's investments are no longer
determined to be liquid or if the market value of Fund assets has changed if
such determination or change causes a Fund to hold more than 15% (10% in the
case of a Fund that is a Money Market Fund or an Institutional Money Market
Fund) of its net assets in illiquid securities in order for the Board of
Trustees to consider what action, if any, should be taken on behalf of the
Trust, unless Banc One Investment Advisors or the applicable Sub- Advisor is
able to dispose of illiquid assets in an orderly manner in an amount that
reduces the Fund's holdings of illiquid assets to less than 15% (or 10% in the
case of a Fund that is a Money Market Fund) of its net assets.
    

         Additionally, although not a matter controlled by their fundamental
investment restrictions, so long as their shares are registered under the
securities laws of the State of Texas, the Prime Money Market Fund and the Ohio
Municipal Money Market Fund will: (i) limit their investments in other
investment companies to no more than 10% of each Funds total asset; (ii) invest
only in other investment companies with substantially similar investment
objectives; and (iii) invest only in other investment companies with charges and
fees substantially similar to those set forth in paragraph (3) and (4) of
Section 123.3 of the Texas State Statute, not to exceed .25% in 12b-1 and no
other commission or other remuneration is paid or given directly or indirectly
for soliciting any security holder in Texas.

         In addition, the Intermediate Tax-Free Bond Fund will not invest more
than 25% of its assets in municipal securities that are related in such a way
that a political, 


                                       80
<PAGE>   594

economic or business development affecting one security will also affect other
municipal securities.

PORTFOLIO TURNOVER

         The portfolio turnover rate for each Fund is calculated by dividing the
lesser of purchases or sales of portfolio securities for the year by the monthly
average value of the portfolio securities. The calculation excludes all
securities whose maturities at the time of acquisition were one year or less.
Thus, for regulatory purposes, the portfolio turnovers with respect to the Money
Market Funds were zero for the period from the commencement of their respective
operations to June 30, 1998 and are expected to remain zero, and the portfolio
turnover rate with respect to the Institutional Money Market Funds is expected
to be zero.



                                       81
<PAGE>   595

The portfolio turnover rates of the Funds for the fiscal years ended June 30,
1998 and 1997 were as follows:

                        THE ONE GROUP PORTFOLIO TURNOVER

   
<TABLE>
<CAPTION>
                                                                              FISCAL YEAR ENDED
                                                                              JUNE 30,
                                                                              --------
FUND                                                                   1998             1997
- ----                                                                   ----             ----

<S>                                                                 <C>                  <C>    
U.S. Treasury Securities Money Market                                  0%**                 0%**
Prime Money Market                                                     0%**                 0%**
Municipal Money Market                                                 0%**                 0%**
Ohio Municipal Money Market                                            0%**                 0%**
Equity Income                                                        14.64%               28.18%
Mid Cap Value                                                       106.41%               92.66%
Mid Cap Growth                                                      158.43%              301.35%
Equity Index                                                          4.32%                5.81%
Large Cap Value                                                      47.35%               77.05%
Balanced                                                             46.04%               80.96%
International Equity Index                                            9.90%                9.61%
Large Cap Growth                                                    117.34%               57.17%
Short-Term Bond                                                      56.99%               66.61%
Intermediate Tax-Free Bond                                          109.03%               86.89%
Municipal Income                                                     69.76%               62.83%
Ohio Municipal Bond                                                  10.49%                7.45%
Government Bond                                                      91.49%               60.53%
Ultra Short-Term Bond                                                41.15%               70.36%
Treasury Only Money Market                                             0%**                 0%**
Government Money Market                                                0%**                 0%**
Kentucky Municipal Bond                                               5.81%               13.30%
Institutional Prime Money Market                                        NA*                  NA+
Treasury Money Market                                                   NA*                  NA+
Tax-Exempt Money Market                                                 NA*                  NA+
Arizona Municipal Bond                                               20.89%             5.66%***
Texas Tax-Free Bond                                                     NA*                  NA+
W. Virginia Municipal Bond                                           16.69%             6.21%***
Louisiana Municipal Bond                                             12.03%               17.39%
Diversified Equity                                                   62.37%              113.17%
Small Cap Growth                                                     83.77%               92.01%
Investor Growth                                                       4.05%             18.49%++
Investor Growth & Income                                             11.38%             18.07%++
Investor Aggressive Growth                                              NA*                  NA+
Investor Conservative Growth                                          3.22%             28.46%++
Investor Balanced                                                     9.71%             12.20%++
Investor Fixed Income                                                   NA*                  NA+
High Yield Bond                                                         NA*                  NA+
Treasury & Agency                                                    41.60%            54.44%***
    

*        As of June 30, 1998, the Fund had not commenced operations.

**       Turnover rate is not applicable to money market funds.

***      Portfolio turnover rate for the period January 20, 1997 through June 30, 1997.
</TABLE>

                                       82
<PAGE>   596

+        As of June 30, 1997, the Fund had not commenced operations.

++       Portfolio turnover rate for the period December 10, 1996 through June
         30, 1997.

   
         The fiscal year end for the Predecessor Funds was December 31st. The
portfolio turnover rates of these Funds for the fiscal years ended December 31,
1998 and 1997 were as follows:

<TABLE>
<CAPTION>
                                                                              FISCAL YEAR ENDED
                                                                              DECEMBER 31,
FUND                                                                   1998             1997
- ----                                                                   ----             ----

<S>                                                                   <C>               <C>
Small Cap Value Fund
Diversified Mid Cap
Diversified International
Market Expansion Index
Bond
Income Bond
Intermediate Bond
Short-Term Municipal Bond
Tax-Free Bond
Michigan Municipal Bond
Michigan Money Market
Cash Management Money Market
Treasury Cash Management Money Market
Treasury Prime Cash Management Money Market
U.S. Government Securities Cash Management Money Market
Municipal Cash Management Money Market
</TABLE>
    


   
         Some of the Funds listed above had portfolio turnover rates in excess
of 100%. This means that these Funds sold and replaced over 100% of their
investments. The high portfolio turnover rates for these Funds resulted from
various factors, including some or all of the following: investment strategies,
unusually high market volatility and significant growth of the Funds. Higher
portfolio turnover rates will likely result in higher transaction costs to the
Funds and may result in additional tax consequences to Shareholders. To the
extent portfolio turnover results in short-term capital gains, such gains will
generally be taxed at ordinary income tax rates. Portfolio turnover may vary
greatly from year to year as well as within a particular year, and may also be
affected by cash requirements for redemptions of Shares. Portfolio turnover will
not be a limiting factor in making portfolio decisions.
    

ADDITIONAL TAX INFORMATION CONCERNING ALL FUNDS

   
         Each Fund is treated as a separate entity for federal income tax
purposes and is not combined with The One Group's other funds. It is the policy
of each Fund of the Trust to meet the requirements necessary to qualify as a
"regulated investment company" under Subchapter M of the Internal Revenue Code
of 1986, as amended (the "Code"). By following such policy, each Fund expects to
eliminate or reduce to a nominal amount the federal income taxes to which it may
be subject.
    



                                       83
<PAGE>   597

         In order to qualify as a regulated investment company, each Fund must,
among other things, (1) derive at least 90% of its gross income from dividends,
interest, payments with respect to securities loans, and gains from the sale or
other disposition of stock or securities, foreign currencies or other income
(including gains from options, futures or forward contracts) derived with
respect to its business of investing in stock, securities or currencies, and (2)
diversify its holdings so that at the end of each quarter of its taxable year
(i) at least 50% of the market value of the Fund's assets is represented by cash
or cash items, U.S. government securities, securities of other regulated
investment companies, and other securities limited, in respect of any one
issuer, to an amount not greater than 5% of the value of the Fund's assets and
10% of the outstanding voting securities of such issuer, and (ii) not more than
25% of the value of its assets is invested in the securities of any one issuer
(other than U.S. government securities or the securities of other regulated
investment companies) or of two or more issuers that the Fund controls and that
are engaged in the same, similar, or related trades or businesses. These
requirements may limit the range of the Fund's investments. If a Fund qualifies
as a regulated investment company, it will not be subject to federal income tax
on the part of its income distributed to Shareholders, provided the Fund
distributes during its taxable year at least (a) 90% of its taxable net
investment income (very generally, dividends, interest, certain other income,
and the excess, if any, of net short-term capital gain over net long-term loss),
and (b) 90% of the excess of (i) its tax-exempt interest income (if any) less
(ii) certain deductions attributable to that income. Each Fund of the Trust
intends to make sufficient distributions to Shareholders to qualify for this
special tax treatment.

         If a Fund failed to qualify as a regulated investment company receiving
special tax treatment in any taxable year, the Fund would be subject to tax on
its taxable income at corporate rates, and all distributions from earnings and
profits, including any distributions of net tax-exempt income and net long-term
capital gains, would be taxable to Shareholders as ordinary income. In addition,
the Fund could be required to recognize unrealized gains, pay substantial taxes
and interest and make substantial distributions before requalifying as a
regulated investment company and being accorded special tax treatment.

   
         Generally, regulated investment companies that do not distribute in
each calendar year an amount equal to 98% of their "ordinary income" (as
defined) for the calendar year, plus 98% of their capital gain net income (as
defined) for the one-year period ending on October 31 of such calendar year,
plus any undistributed amounts from the previous year are subject to a
non-deductible excise tax equal to 4% of the undistributed amounts. For purposes
of the excise tax, a Fund is treated as having distributed any amount on which
it is subject to income tax for any taxable year ending in such calendar year.
Each Fund of the Trust intends to make sufficient distributions to avoid
liability for the excise tax.
    

         Shareholders of the Funds will generally be subject to federal income
tax on distributions received from the Funds. Dividends that are attributable to
a Fund's net investment income will be taxed to shareholders as ordinary income.
Distributions of net capital gain that are designated by a Fund as capital gain
dividends will generally be 


                                       84
<PAGE>   598

   
taxable to a Shareholder receiving such distributions as long-term capital gain
(generally taxed at a 20% tax rate for non-corporate Shareholders) regardless of
how long the Shareholder has held its shares. Distributions in excess of a
Fund's current and accumulated "earnings and profits" will be treated by a
Shareholder receiving such distributions as a return of capital to the extent of
such Shareholder's basis in its Shares in the Fund, and thereafter as capital
gain. A return of capital is not taxable, but reduces a Shareholder's basis in
its shares. Shareholders not subject to tax on their income generally will not
be required to pay tax on amounts distributed to them. The sale, exchange or
redemption of Fund shares by a Shareholder may give rise to a taxable gain or
loss to that Shareholder. In general, any gain or loss realized upon a taxable
disposition of shares will be treated as long-term capital gain or loss if the
Shareholder has held the shares for more than 12 months (generally taxed at a
20% tax rate for non-corporate shareholders), and otherwise as short-term
capital gain or loss. However, if a Shareholder sells shares at a loss within
six months of purchase, any loss will be disallowed for Federal income tax
purposes to the extent of any exempt-interest dividends received on such shares.
Dividends and distributions on a Fund's shares are generally subject to federal
income tax as described herein to the extent they do not exceed the Fund's
realized income and gains, even though such dividends and distributions may
economically represent a return of a particular shareholder's investment. Such
distributions are likely to occur in respect of shares purchased at a time when
the Fund's net asset value reflects gains that are either unrealized, or
realized but not distributed.
    

         In addition, any loss (not already disallowed as provided in the
preceding sentence) realized upon a taxable disposition of shares held for six
months or less will be treated as long-term to the extent of any long-term
capital gain distributions received by the Shareholder with respect to the
shares. All or a portion of any loss realized upon a taxable disposition of Fund
shares will be disallowed if other Fund shares are purchased within 30 days
before or after the disposition. In such a case, the basis of the newly
purchased shares will be adjusted to reflect the disallowed loss.

   
         Certain investment and hedging activities of the Funds, including
transactions in options, futures contracts, hedging transactions, forward
contracts, straddles, swaps, short sales, foreign currencies, and foreign
securities will be subject to special tax rules (including mark-to-market,
constructive sale, straddle, wash sale and short sale rules). In a given case,
these rules may accelerate income to the Fund, defer losses to the Fund, cause
adjustments in the holding periods of the Fund's securities, convert long-term
capital gains into short-term capital gains, convert short-term capital losses
into long-term capital losses, or otherwise affect the character of the Fund's
income. These rules could therefore affect the amount, timing and character of
distributions to Shareholders and cause differences between a Fund's book income
and taxable income. Income earned as a result of these transactions would, in
general, not be eligible for the dividends-received deduction or for treatment
as exempt-interest dividends when distributed to Shareholders including the
Funds of Funds. The Fund will endeavor to make any available elections
pertaining to such transactions in a manner believed to be in the best interest
of the Fund.
    



                                       85
<PAGE>   599

         Certain securities purchased by the Funds (such as STRIPS, CUBES, TRS,
TIGRS, and CATS), as defined in "Details About the Funds' Investment Practices
and Policies" in the Funds' Prospectuses, are sold at original issue discount
and thus do not make periodic cash interest payments. Similarly, zero-coupon
bonds do not make periodic interest payments. A Fund will be required to include
as part of its current income for tax purposes the imputed interest on such
obligations even though the Fund has not received any interest payments on such
obligations during that period. Because each Fund distributes substantially all
of its net investment income to its Shareholders (including such imputed
interest), the Fund may have to sell portfolio securities in order to generate
the cash necessary for the required distributions. Such sales may occur at a
time when Banc One Investment Advisors would not otherwise have chosen to sell
such securities and may result in a taxable gain or loss.

         A Fund will be required in certain cases to withhold and remit to the
United States Treasury 31% of taxable dividends or of gross proceeds from
redemptions paid to any individual Shareholder who has provided to the Fund
either an incorrect tax identification number or no number at all, or who is
subject to withholding by the Internal Revenue Service for failure properly to
report payments of interest or dividends. This withholding, known as backup
withholding, is not an additional tax, and any amounts withheld may be credited
against the Shareholder's ultimate U.S. tax liability.

   
         The Internal Revenue Service recently revised its regulations affecting
the application to foreign investors of the back-up withholding and withholding
tax rules described above. The new regulations will generally be effective for
payments made after December 31, 1999 (although transition rules will apply). In
some circumstances, the new rules will increase the certification and filing
requirements imposed on foreign investors in order to qualify for exemption from
the 31% back-up withholding tax and for reduced withholding tax rates under
income tax treaties. Foreign investors in a Fund should consult their tax
advisors with respect to the potential application of these new regulations. The
foregoing is only a summary of some of the important federal tax considerations
generally affecting purchasers of Shares of a Fund of the Trust. Further tax
information regarding the Tax-Advantaged Funds and the International Funds is
included in following sections of this Statement of Additional Information. No
attempt is made to present herein a complete explanation of the federal income
tax treatment of each Fund or its Shareholders, and this discussion is not
intended as a substitute for careful tax planning. Accordingly, prospective
purchasers of Shares of a Fund are urged to consult their tax advisors with
specific reference to their own tax situation, including the potential
application of state, local and (if applicable) foreign taxes.
    

   
         The foregoing discussion and the discussion below regarding the
Tax-Advantaged Funds, the International Funds and the Funds of Funds are based
on tax laws and regulations which are in effect on the date of this Statement of
Additional Information; such laws and regulations may be changed by legislative,
judicial or administrative action, and such changes may be retroactive.
    



                                       86
<PAGE>   600

ADDITIONAL TAX INFORMATION CONCERNING THE TAX-ADVANTAGED FUNDS

         The Code permits a regulated investment company which has invested, at
the close of each quarter of its taxable year, at least 50% of its total assets
in tax-free Municipal Securities and other securities the interest on which is
exempt from the regular federal income tax to pay exempt-interest dividends to
its Shareholders.

         The policy of each Tax-Advantaged Fund is to distribute each year as
exempt-interest dividends substantially all the Fund's net exempt interest
income. An exempt-interest dividend is any dividend or part thereof (other than
a capital gain dividend) paid by a Tax-Advantaged Fund and designated as an
exempt-interest dividend in a written notice mailed to Shareholders after the
close of the Fund's taxable year, which does not exceed, in the aggregate, the
net interest income from Municipal Securities and other securities the interest
on which is exempt from the regular federal income tax received by the Fund
during the taxable year. The percentage of the total dividends paid for any
taxable year which qualifies as federal exempt-interest dividends will be the
same for all Shareholders receiving dividends from a Tax-Advantaged Fund during
such year, regardless of the period for which the Shares were held.

   
         Exempt-interest dividends may generally be treated by a Tax-Advantaged
Fund's Shareholders as items of interest excludable from their gross income
under Section 103(a) of the Code. However, each Shareholder of a Tax-Free Fund
is advised to consult his or her tax advisor with respect to whether such
Shareholder may be treated as a "SUBSTANTIAL USER" or a "RELATED PERSON" to such
user under Section 147(a) of the Code with respect to facilities financed
through any of the tax-exempt obligations held by the Fund. "Substantial user"
is defined under U.S. Treasury Regulations to include a non-exempt person who
regularly uses a part of such facilities in his trade or business and (a)(i)
whose gross revenues derived with respect to the facilities financed by the
issuance of bonds are more than 5% of the total revenues derived by all users of
such facilities or (ii) who occupies more than 5% of the usable area of the
facility or (b) for whom such facilities or a part thereof were specifically
constructed, reconstructed or acquired.
    

   
         "RELATED PERSONS" includes certain related natural persons, affiliated
corporations, partners and partnerships.
    

         Dividends attributable to interest on certain private activity bonds
issued after August 7, 1986 must be taken into account in determining
alternative minimum taxable income for purposes of determining liability (if
any) for the alternative minimum tax applicable to individuals and the
alternative minimum tax applicable to corporations. In the case of corporations,
all tax-exempt interest dividends will be taken into account in determining
adjusted current earnings for the purpose of computing the alternative minimum
tax imposed on corporations (as defined for federal income tax purposes).

         Current Federal law limits the types and volume of bonds qualifying for
Federal income tax exemption of interest, which may have an effect on the
ability of the Funds to 


                                       87
<PAGE>   601

purchase sufficient amounts of tax exempt securities to satisfy the Code's
requirements for the payment of "exempt-interest" dividends.

         Each Tax-Advantaged Fund may at times purchase Municipal Securities (or
other securities the interest on which is exempt from the regular federal income
tax) at a discount from the price at which they were originally issued. For
federal income tax purposes, some or all of the market discount will be included
in the Fund's ordinary income and will be taxable to shareholders as such when
it is distributed to them.

         Each Tax-Advantaged Fund may acquire rights regarding specified
portfolio securities under puts. See "Futures and Options Trading." The policy
of each Tax-Free Fund is to limit its acquisition of puts to those under which
the Fund will be treated for federal income tax purposes as the owner of the
Municipal Securities acquired subject to the put and the interest on the
Municipal Securities will be tax-exempt to the Fund. Although the Internal
Revenue Service has issued a published ruling that provides some guidance
regarding the tax consequences of the purchase of puts, there is currently no
guidance available from the Internal Revenue Service that definitively
establishes the tax consequences of many of the types of puts that the Funds
could acquire under the 1940 Act. Therefore, although a Tax-Advantaged Fund will
only acquire a put after concluding that it will have the tax consequences
described above, the Internal Revenue Service could reach a different conclusion
from that of the Fund.

         Following is a brief discussion of treatment of exempt-interest
dividends by certain states.

   
         Arizona Taxes. Shareholders of the Arizona Municipal Bond Fund will not
be subject to Arizona income tax on exempt-interest dividends received from the
Fund to the extent that such dividends are attributable to interest on
tax-exempt obligations of the state of Arizona and its political subdivisions
("LOCAL OBLIGATIONS"). Interest from Local Obligations however, may be
includable in Federal gross income.
    

         Kentucky Taxes. Fund shares are currently exempt from the Kentucky tax
on intangible property. The Kentucky Supreme Court recently held that corporate
shares are not subject to the Kentucky intangible property tax because of an
exemption for shares of certain corporations with in-state activities which the
Court held to violate the Commerce Clause of the U.S. Constitution. The Kentucky
Revenue Cabinet has announced that, in light of the ruling, it will not, as a
matter of policy, require that the Kentucky intangible property tax be paid on
any portion of the value of shares of any mutual fund. Previously the Cabinet
had required owners of shares of mutual funds to pay tax on the portion of their
share value representing underlying fund assets not exempt from the tax. The
Cabinet could change this policy in the future. The Kentucky General Assembly
could re-enact the intangible tax on corporate shares and other similar
securities without the exemption found objectionable by the Court. There is no
assurance that the Fund shares will remain free from the Kentucky intangible
property tax.

   
         Michigan Taxes. Distributions received from the Michigan Municipal Bond
Fund are exempt from Michigan personal income tax and excluded from the taxable
income 
    


                                       88
<PAGE>   602

   
base of the Michigan intangibles tax to the extent they are derived from
interest on tax-exempt securities, under the current position of the Michigan
Department of Treasury. Such distributions, if received in connection with a
shareholder's business activity, may, however, be subject to Michigan single
business tax. For Michigan personal income tax, intangibles tax and single
business tax purposes, Fund distributions attributable to any source other than
interest on tax-exempt securities will be fully taxable. Fund distributions may
be subject to the uniform city income tax imposed by certain Michigan cities.
    

   
         West Virginia Taxes. Shareholders may reduce their West Virginia
adjusted gross income ("AGI") for that portion of the interest or dividends they
receive which represents interest or dividends of the Fund on obligations or
securities of any authority, commission or instrumentality of West Virginia that
is exempt from the West Virginia personal income tax by Federal or West Virginia
law. Shareholders may also reduce their West Virginia AGI for that portion of
interest or dividends received from the Fund derived from obligations of the
United States and from obligations or securities of some authorities,
commissions or instrumentalities of the United States.
    

         However, shareholders cannot reduce their West Virginia AGI for any
portion of interest or dividends received from the Fund derived from income on
obligations of any state, or political subdivision thereof, other than West
Virginia, regardless of any Federal law exemption, such as that accorded
"exempt-interest dividends;" and they must increase their West Virginia AGI by
the amount of such interest or dividend income. Also, a shareholder must
increase his West Virginia AGI by interest on indebtedness incurred (directly or
indirectly) to purchase or hold shares of the Fund to the extent such interest
was deductible in determining Federal AGI. The sale, exchange, or redemption of
Fund shares is subject to the West Virginia income tax to the extent the gain or
loss therefrom affects the determination of the shareholder's Federal AGI.

         The foregoing is only a summary of some of the important tax
considerations generally affecting purchasers of Shares of a Tax-Advantaged
Fund. Additional tax information concerning all Funds of the Trust is contained
in the immediately preceding section of this Statement of Additional
Information. No attempt is made to present a complete explanation of the state
income tax treatment of each Tax-Advantaged Fund or its Shareholders, and this
discussion is not intended as a substitute for careful tax planning.
Accordingly, prospective purchasers of Shares of a Tax-Advantaged Fund are urged
to consult their tax advisors with specific reference to their own tax
situation, including the potential application of state, local and foreign
taxes.

   
ADDITIONAL TAX INFORMATION CONCERNING THE INTERNATIONAL FUNDS

         Transactions of the International Funds in foreign currencies, foreign
currency denominated debt securities and certain foreign currency options,
future contracts and forward contracts (and similar instruments) may result in
ordinary income or loss to the Fund for federal income tax purposes which will
be taxable to the Shareholders as such when it is distributed to them.
    

                                       89
<PAGE>   603

         Gains from foreign currencies (including foreign currency options,
foreign currency futures and foreign currency forward contracts) will (under
regulations to be issued) constitute qualifying income for purposes of the 90%
test only to the extent that they are directly related to the trust's business
of investing in stock or securities.

   
         Investment by the International Funds in certain "passive foreign
investment companies" could subject the Fund to a U.S. federal income tax or
other charge on proceeds from the sale of its investment in such a company or
other distributions from such a company, which tax cannot be eliminated by
making distributions to Shareholders of the International Funds. If the
International Funds elect to treat a passive foreign investment company as a
"qualified electing fund," different rules would apply, although the
International Funds do not expect to make such an election. Rather, the Funds
intend to avoid such tax or other charge by making an election to mark gains
(and to a limited extent, losses) from such investments to market annually.

         The qualified electing fund and mark-to-market elections may have the
effect of accelerating the recognition of income (without the receipt of cash)
and increase the amount required to be distributed for the Fund to avoid
taxation. Making either of these elections therefore may require a Fund to
liquidate other investments (including when it is not advantageous to do so) to
meet its distribution requirement, which also may accelerate the recognition of
gain and affect a Fund's total return.
    

FOREIGN TAX CREDIT

   
         If more than 50% of an International Fund's total assets at year end
consist of the debt and equity securities of foreign corporations, the Fund may
elect to permit its Shareholders who are U.S. citizens to claim a foreign tax
credit or deduction on their U.S. income tax returns for their pro rata share of
foreign taxes paid by the Fund. In that case, Shareholders will be required to
include in gross income their pro rata share of foreign taxes paid by the Fund.
Each Shareholder may then claim a foreign tax credit or a tax deduction that
would offset some or all of the increased tax liability. Generally, a credit for
foreign taxes is subject to the limitation that it may not exceed the
Shareholder's U.S. tax attributable to his or her total foreign source taxable
income. For this purpose, the source of the income to an International Fund
flows through to the Fund's Shareholders. In addition, no credit will be allowed
for foreign taxes paid in respect of any dividend on stock paid or accrued after
September 4, 1997 unless the stock was held (without protection from risk of
loss) for at least 16 days during the 30-day period beginning 15 days before the
ex-dividend date. For certain preferred stock the holding period is 46 days
during the 90-day period beginning 45 days before the ex-dividend date. This
means that (i) Shareholders not satisfying this holding period requirement may
not claim foreign tax credits in respect of their shares, and (ii) the Fund may
not "flow through" tax credits to Shareholders in respect of dividends on stock
that the Fund has not held for the requisite period. If the Fund makes this
election with respect to foreign tax credits it will notify Shareholders of
their proportionate share of foreign taxes paid, the portion of the distribution
that represents foreign source income, and any amount of such foreign taxes paid
which are not creditable because the Fund did not meet the holding period
requirement. Gains to the International Funds from the sale of securities
generally will be treated as derived from U.S. sources and certain currency
fluctuation gains, including fluctuation gains from foreign currency denominated
debt securities, receivables and payables, will be treated as ordinary income
derived from U.S. sources. With limited exceptions, the foreign tax credit is
allowed to offset only up to 90% of the alternative minimum tax imposed on
corporations and individuals. Because of these limitations, Shareholders may be
unable to claim a credit 
    

                                       90
<PAGE>   604

for the full amount of their proportionate share of the foreign taxes paid by
the International Equity Index Fund.

         The foregoing is only a general description of the treatment of foreign
source income or foreign taxes under the United States federal income tax laws.
Because the availability of a credit or deduction depends on the particular
circumstances of each Shareholder, Shareholders are advised to consult their own
tax advisors.

   
ADDITIONAL TAX INFORMATION CONCERNING THE FUNDS OF FUNDS

         A Fund of Funds will not be able to offset gains realized by one Fund 
in which such Fund of Funds invests against losses realized by another Fund in 
which such Fund of Funds invests. The use of a fund-of-funds structure could 
therefore affect the amount, timing and character of distributions to 
shareholders.

         Depending on a Fund of Fund's percentage ownership in an underlying 
Fund, both before and after a redemption, a redemption of shares of an 
underlying Fund by a Fund of Funds may cause the Fund of Funds to be treated as 
not receiving capital gain income on the amount by which the distribution 
exceeds the tax basis of the Fund of Funds in the shares of the underlying 
Fund, but instead to be treated as receiving a dividend taxable as ordinary 
income on the full amount of the distribution. This could cause shareholders of 
the Fund of Funds to recognize higher amounts of ordinary income than if the 
shareholders had held the shares of the underlying Funds directly.

         Although each Fund of Funds may itself be entitled to a deduction for 
foreign taxes paid by a Fund in which such Fund of Funds invests (see 
"Additional Tax Information Concerning the International Funds"), the Fund of 
Funds will not be able to pass any such credit or deduction through to its own 
shareholders.                   

         The foregoing is only a general description of the federal tax 
consequences of a fund-of-funds structure. Accordingly, prospective purchasers 
of Shares of a Fund of Funds are urged to consult their tax advisors with 
specific reference to their own tax situation, including the potential 
application of state, local and foreign taxes.
    

                                   VALUATION

VALUATION OF THE MONEY MARKET AND INSTITUTIONAL MONEY MARKET FUNDS

         The Money Market and Institutional Money Market Funds have elected to
use the amortized cost method of valuation pursuant to Rule 2a-7 under the 1940
Act. This involves valuing an instrument at its cost initially and thereafter
assuming a constant amortization to maturity of any discounts or premium,
regardless of the impact of fluctuating interest rates on the market value of
the instrument. This method may result in periods during which value, as
determined by amortized cost, is higher or lower than the price each Fund would
receive if it sold the instrument. The value of securities in the Funds can be
expected to vary inversely with changes in prevailing interest rates.

         Pursuant to Rule 2a-7, the Money Market and Institutional Money Market
Funds will maintain a dollar-weighted average portfolio maturity appropriate to
their objective of maintaining a stable net asset value per Share, provided that
no Fund will purchase any security with a remaining maturity of more than 397
days (securities subject to repurchase agreements and certain variable or
floating rate instruments may bear longer maturities) nor maintain a
dollar-weighted, average portfolio maturity which exceeds 90 days. The Trust's
Board of Trustees has also undertaken to establish procedures reasonably
designed, taking into account current market conditions and a Fund's investment
objective, to stabilize the net asset value per Share of the Money Market Funds
for purposes of sales and redemptions at $1.00. These procedures include review
by the Trustees, at such intervals as they deem appropriate, to determine the
extent, if any, to which the net asset value per Share of each Fund calculated
by using available market quotations deviates from $1.00 per Share. In the event
such deviation exceeds one half of one percent, the Rule requires that the Board
promptly consider what action, if any, should be initiated. If the Trustees
believe that the extent of any deviation from a Fund's $1.00 amortized cost
price per Share may result in material dilution or other unfair results to new
or existing investors, they will take such steps as they consider appropriate to
eliminate or reduce to the extent reasonably practicable any such dilution or
unfair results. These steps may include selling portfolio instruments prior to
maturity, shortening the average portfolio maturity, withholding or reducing
dividends, reducing the number of a Fund's outstanding Shares without monetary
consideration, or utilizing a net asset value per Share determined by using
available market quotations.

VALUATION OF THE EQUITY FUNDS, THE BOND FUNDS AND THE MUNICIPAL BOND FUNDS

                                       91
<PAGE>   605

   
         Except as noted below, investments of the Equity Funds, Bond Funds, and
Municipal Bond Funds of the Trust in securities the principal market for which
is a securities exchange are valued at their market values based upon the latest
available sales price or, absent such a price, by reference to the latest
available bid and asked prices in the principal market in which such securities
are normally traded. Except as noted below, investments of the International
Funds in securities the principal market for which is a securities exchange are
valued at the closing mid-market price on that exchange on the day of
computation.

         With regard to each of the above-mentioned Funds, securities the
principal market for which is not a securities exchange are valued at the mean
of their latest bid and ask quotations in such principal market. Securities and
other assets for which quotations either (1) are not readily available or (2) in
the case of the International Funds and the High Yield Bond Fund are determined
by Banc One Investment Advisors or the applicable Sub-Advisor to not accurately
reflect their value are valued at their fair value as determined in good faith
under consistently applied procedures established by and under the general
supervision of the Trustees of the Trust. Short-term securities are valued at
either amortized cost or original cost plus accrued interest, which approximates
current value. Mutual fund investments of the Funds of Funds will be valued at
the most recently calculated net asset value.
    

         The value of a foreign security is determined in its national currency
as of the close of trading on the foreign exchange or other principal market on
which it is traded, which value is then converted into its U.S. dollar
equivalent at the foreign exchange closing mid-market rate reported in the
Financial Times as the closing rate for that date. When an occurrence subsequent
to the time a value of a foreign security was so established is likely to have
changed the value, then the fair value of those securities will be determined by
consideration of other factors by or under the direction of the Trustees of the
Trust or their delegates.

   
Securities for which market quotations are readily available will be valued on
the basis of quotations provided by dealers in such securities or furnished by a
pricing service. Securities for which market quotations are not readily
available and other assets will be valued at fair value using methods determined
in good faith by Banc One Investment Advisors under the supervision of the
Trustees and may include yield equivalents or a pricing matrix.
    

                      ADDITIONAL INFORMATION REGARDING THE
                    CALCULATION OF PER SHARE NET ASSET VALUE

         The net asset value of each Fund is determined and its Class I, Class
A, Class B, Class C and Service Class Shares are priced as of the times
specified in each Fund's Prospectus. The net asset value per Share of each
Fund's Class I, Class A, Class B, Class C and Service Class Shares is calculated
by determining the value of the respective Class's proportional interest in the
securities and other assets of the Fund, less (i) such Class's proportional
share of general liabilities and (ii) the liabilities allocable only to such
Class, and dividing such amount by the number of Shares of the Class
outstanding. 


                                       92
<PAGE>   606

The net asset value of a Fund's Class I, Class A, Class B, Class C and Service
Class Shares may differ from each other due to the expense of the Distribution
and Shareholders Services Plan fee applicable to a Fund's Class A, Class B,
Class C and Service Class Shares.

                 ADDITIONAL PURCHASE AND REDEMPTION INFORMATION

   
         All of the classes of Shares in each Fund (other than Service Class
shares) are sold on a continuous basis by The One Group Services Company (the
"DISTRIBUTOR"), and the Distributor has agreed to use appropriate efforts to
solicit all purchase orders.
    

         Class I Shares in a Fund may be purchased, through procedures
established by the Distributor, by institutional investors, including affiliates
of BANK ONE CORPORATION and any bank, depository institution, insurance company,
pension plan or other organization authorized to act in fiduciary, advisory,
agency, custodial or similar capacities. Class I Shares are not available to
Individual Retirement Accounts.

   
         Class A, Class B and Class C Shares may be purchased by any investor
that does not meet the purchase eligibility criteria, described above, with
respect to Class I Shares. In addition to purchasing Class A, Class B and Class
C Shares directly from the Distributor, an investor may purchase Class A, Class
B and Class C Shares through a financial institution, such as a bank, savings
and loan association, insurance company (each a "SHAREHOLDER SERVICING AGENT")
that has established a Shareholder servicing agreement with the Distributor, or
through a broker-dealer that has established a dealer agreement with the
Distributor. Questions concerning the eligibility requirements for each class of
the Trust's Shares may be directed to the Distributor at 1-800-480-4111.

         Service Class Shares are available only in Money Market Funds. This
class of shares is available to broker-dealers, other financial intermediaries,
banks and other depository institutions requiring special administrative and
accounting services (e.g., sweep processing).
    



                                       93
<PAGE>   607

EXCHANGES.

   
         The exchange privileges described herein may be exercised only in those
states where the Shares of the Fund or such other Fund may be legally sold. All
exchanges discussed herein are made at the net asset value of the exchanged
Shares, except as provided below. The Trust does not impose a charge for
processing exchanges of Shares. For Federal income tax purposes, an exchange is
treated as a sale of shares and generally results in a capital gain or loss.
    

         Class I. Class I Shareholders of a Fund may exchange their Shares for
Class A Shares of the same Fund or for Class A Shares or Class I Shares of
another Fund of the Trust. Class A Shareholders may exchange their Shares for
Class I Shares of a Fund or for Class I or Class A Shares of another Fund or the
Trust, if the Shareholder is eligible to purchase such Shares. If a Class A
Shareholder of the High Yield Bond Fund exchanges his or her Shares within one
year of receipt of the Shares, the Shareholder will be assessed a 2% redemption
fee.

         Class A Shares. If a Shareholder seeks to exchange Class A Shares of a
Fund that does not impose a sales charge for Class A Shares of a Fund that does,
or the Fund being exchanged into has a higher sales charge, the Shareholder will
be required to pay a sales charge in the amount equal to the difference between
the sales charge applicable to the Fund into which the Shares are being
exchanged and any sales charge previously paid for the exchanged Shares,
including any sales charges incurred on any earlier exchanges of the Shares
(unless such sales charge is otherwise waived as provided above). The exchange
of Class I Shares for Class A Shares also will require payment of the sales
charge unless the sales charge is waived, as provided above. If a Shareholder
(no longer eligible to purchase Class I Shares) purchases Class A Shares of a
Fund, the Shareholder will be subject to Distribution and Shareholder Services
Plan Fees.

         Class B Shares. Class B Shareholders of a Fund may exchange their
Shares for Class B Shares of any other Fund of the Trust on the basis of the net
asset value of the exchanged Class B Shares, without the payment of any
Contingent Deferred Sales Charge that might otherwise be due upon redemption of
the outstanding Class B Shares. The newly acquired Class B Shares will be
subject to the higher Contingent Deferred Sales Charge of either the Fund from
which the Shares were exchanged or the Fund into which the Shares were
exchanged. With respect to outstanding Class B Shares as to which previous
exchanges have taken place, "higher Contingent Deferred Sales Charge" shall mean
the higher of the Contingent Deferred Sales Charge applicable to either the Fund
the Shares are exchanging into or any other Fund from which the Shares
previously have been exchanged. For purposes of computing the Contingent
Deferred Sales Charge that may be payable upon a disposition of the newly
acquired Class B Shares, the holding period for outstanding Class B Shares of
the Fund from which the exchange was made is "tacked" to the holding period of
the newly acquired Class B Shares. For purposes of calculating the holding
period applicable to the newly acquired Class B Shares, the newly acquired Class
B Shares shall be deemed to have been issued on the date of receipt of the
Shareholder's order to purchase the outstanding Class B Shares of the Fund from
which the initial exchange was made.



                                       94
<PAGE>   608

         Class C Shares. Class C Shareholders may not exchange their Class C
Shares for shares of any other class nor may shares of any other class be
exchanged for Class C Shares.

         Service Class Shares. Service Class Shareholders may not exchange their
Service Class Shares for Shares of any other class, nor may Shares of any other
class be exchanged for Service Class Shares.

         Institutional Money Market Funds. Shares of the Institutional Money
Market Funds may be purchased by commercial and retail institutional investors,
including affiliates of BANK ONE CORPORATION, that have opened an account with
the Transfer Agent either directly or through a Shareholder Servicing Agent, by
persons whose individual net worth, or joint net worth with that person's
spouse, at the time of his or her purchase exceeds $1,000,000, or by persons
whose individual annual income, or joint annual income with that person's
spouse, at the time of his or her purchase exceeds $200,000.

REDEMPTIONS

         The Trust may suspend the right of redemption or postpone the date of
payment for Shares during any period when:

         (a)      trading on the New York Stock Exchange (the "EXCHANGE") is
                  restricted by applicable rules and regulations of the
                  Securities and Exchange Commission,

         (b)      the Exchange is closed for other than customary weekend and
                  holiday closings,

         (c)      the SEC has by order permitted such suspension, or

         (d)      an emergency exists as determined by the SEC.





                                       95
<PAGE>   609

                             MANAGEMENT OF THE TRUST

TRUSTEES & OFFICERS

   
         Overall responsibility for management of the Trust rests with the Board
of Trustees of the Trust. There are currently five Trustees, all of whom, except
John F. Finn, are not "interested persons" of the Trust within the meaning of
that term under the 1940 Act. The Trustees, in turn, elect the officers of the
Trust to supervise actively its day-to-day operations.
    

         The Trustees of the Trust, their addresses, their ages, and principal
occupations during the past five years are set forth below.


   
<TABLE>
<CAPTION>
NAME AND ADDRESS             AGE        POSITION HELD       PRINCIPAL OCCUPATION DURING THE PAST FIVE YEARS
                                        WITH THE TRUST

<S>                          <C>        <C>                 <C>           
Peter C. Marshall            56         Trustee             From November, 1993 to present, President, DCI
DCI Marketing, Inc.                                         Marketing, Inc.
2727 W. Good Hope Road
Milwaukee, WI  53209

Charles I. Post              70         Trustee             From July, 1986 to present, self employed as a
7615 4th Avenue West                                        consultant.
Bradenton, FL  34209

Frederick W. Ruebeck         59         Trustee             From June, 1988 to present, Director of
Eli Lilly & Company                                         Investments, Eli Lilly and Company.
Lilly Corporate Center
307 East McCarty
Indianapolis, IN  46258


Robert A. Oden, Jr.          52         Trustee             From 1995 to present, President , Kenyon College;
Office of the President                                     from 1989 to 1995, Headmaster, The Hotchkiss
Ransom Hall                                                 School.
Kenyon College
Gambier, OH  43022

John F. Finn                 51         Trustee             Since 1975, President of Gardner, Inc.
President
Gardner, Inc.
1150 Chesapeake Avenue
Columbus, Ohio  43212
</TABLE>
    



                                       96
<PAGE>   610





   

    






                                       97
<PAGE>   611

         The Trustees of the Trust receive fees and expenses for each meeting of
the Board of Trustees attended. No officer or employee of the Distributor
currently acts as a Trustee of the Trust.

         The Compensation Table below sets forth the estimated total
compensation to the Trustees from the Trust and the operational funds of The One
Group for the Trust's fiscal year ended June 30, 1998.





                                       98
<PAGE>   612

<TABLE>
<CAPTION>
                                          COMPENSATION TABLE(1)

   
NAME OF PERSON, POSITION     AGGREGATE           PENSION OR         ESTIMATED ANNUAL       TOTAL COMPENSATION
                            COMPENSATION    RETIREMENT BENEFITS       BENEFITS UPON           FROM THE FUND
                           FROM THE TRUST    ACCRUED AS PART OF        RETIREMENT              COMPLEX(3)
                                             TRUST EXPENSES(2)


<S>                       <C>               <C>                   <C>                    <C>    
PETER C. MARSHALL,        $47,500           N/A                   N/A                    $50,500
CHAIRMAN

CHARLES, I. POST,         $45,500           N/A                   N/A                    $48,500
TRUSTEE

FREDERICK W. RUEBECK,     $45,500           N/A                   N/A                    $48,500
TRUSTEE

ROBERT A. ODEN, JR.,      $46,260           N/A                   N/A                    $49,250
TRUSTEE

JOHN F. FINN,             $     0           N/A                   N/A                    $     0
TRUSTEE
</TABLE>
    


1        Figures are for the Trust's fiscal year ended June 30, 1998.

   
2        The Trustees may defer all or a part of their compensation payable by
         the Trust pursuant to the Deferred Compensation Plan for Trustees of
         The One Group (the "PLAN"). Under the Plan, the Trustees may specify
         Class I shares of one or more Funds of the Trust 
    

                                       99
<PAGE>   613

   
         that will be used to measure the performance of a Trustee's deferred
         compensation account. A Trustee's deferred compensation account will be
         paid at such times as elected by the Trustee subject to certain
         mandatory payment provisions in the Plan (e.g., death of a Trustee.)

3        "Fund Complex" comprises the funds of The One Group and the funds of
         The One Group(R) Investment Trust that were operational as of June 30,
         1998.
    



                                      100
<PAGE>   614

         The officers of the Trust receive no compensation directly from the
Trust for performing the duties of their offices. The officers of the Trust,
their addresses, and principal occupations during the past five years are shown
below.

<TABLE>
   
<CAPTION>
                                      POSITION(S) HELD                 PRINCIPAL OCCUPATION
NAME AND ADDRESS                       WITH THE TRUST                  DURING PAST 5 YEARS
- ----------------                       --------------                  -------------------


<S>                                 <C>                                <C>
Mark S. Redman                      President and                      From November, 1997 to present,
The One Group Services              Assistant Secretary                President, The One Group Services
Company                                                                Company; From June, 1995 to
3435 Stelzer Road                                                      November, 1997, Officer, The One
Columbus, Ohio 43219                                                   Group Services Company; From
                                                                       February, 1989 to present,
                                                                       employee of BISYS Fund Services,
                                                                       Inc. (FKA Winsbury Company)

William J. Tomko                    Treasurer                          From April, 1997 to present, Chief
BISYS Fund Services,                                                   Operating Officer, BISYS Fund
Inc.                                                                   Services, Inc.; From April, 1987, to
3435 Stelzer Road                                                      1997, April, 1997, employee,
Columbus, Ohio 43219                                                   BISYS Fund Services, Inc.

Charles L. Booth                    Secretary                          From February, 1998, to present,
BISYS Fund Services,                                                   Chief Compliance Officer and
Inc.                                                                   Vice President Fund
3435 Stelzer Road                                                      BISYS Fund Services, Inc.; From
Columbus, Ohio 43219                                                   April, 1988, to February, 1998,
                                                                       employee, BISYS Fund Services, Inc.

Alaina J. Metz                      Assistant Secretary                From June 1995 to present,
BISYS Fund Services,                                                   Chief Administrator,
Inc.                                                                   Administration and Regulatory
3435 Stelzer Road                                                      Services, BISYS Fund Services,
Columbus, Ohio 43219                                                   Inc.; from May 1989 to June 1995,
                                                                       Supervisor, Mutual Fund Legal
                                                                       Department, Alliance Capital
                                                                       Management.
</TABLE>
    





                                      101
<PAGE>   615

INVESTMENT ADVISOR AND SUB-ADVISORS

         BANC ONE INVESTMENT ADVISORS CORPORATION

         Investment advisory services to each of the Trust's Funds are provided
by Banc One Investment Advisors. Banc One Investment Advisors makes the
investment decisions for the assets of the Funds (except for the International
Equity Index Fund and the High Yield Bond Fund which are sub-advised by Sub-
Advisors). In addition, Banc One Investment Advisors continuously reviews,
supervises and administers the Funds' investment program, subject to the
supervision of, and policies established by, the Trustees of the Trust. The
Trust's Shares are not sponsored, endorsed or guaranteed by, and do not
constitute obligations or deposits of any bank affiliate of Banc One Investment
Advisors and are not insured by the FDIC or issued or guaranteed by the U.S.
government or any of its agencies.

         Banc One Investment Advisors is an indirect, wholly-owned subsidiary of
BANK ONE CORPORATION, a bank holding company incorporated in the state of
Delaware. BANK ONE CORPORATION has affiliate banking organizations in Arizona,
Colorado, Illinois, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma,
Texas, Utah, West Virginia and Wisconsin. In addition, BANK ONE CORPORATION has
several affiliates that engage in data processing, venture capital, investment
and merchant banking, and other diversified services including trust management,
investment management, brokerage, equipment leasing, mortgage banking, consumer
finance, and insurance.

   
         Banc One Investment Advisors represents a consolidation of the
investment advisory staffs of a number of bank affiliates of BANK ONE
CORPORATION, which have considerable experience in the management of open-end
management investment company portfolios, including One Group (formerly, The
One Group and the Helmsman Fund) since 1985.

         Prior to January 2, 1996, investment advisory services were provided to
the predecessor Funds 
    

                                      102
<PAGE>   616

   
of the Louisiana Municipal Bond Fund, the Diversified Equity Fund, and the Small
Cap Growth (formerly the Gulf South Growth Fund), formerly Paragon Louisiana
Tax-Free Fund, Paragon Value Growth Fund and Paragon Gulf South Growth Fund,
respectively, by Premier Investment Advisors, LLP.

         Prior to March __, 1998, First Chicago NBD Investment Management
Company ("FCNIMCO") provided investment management services to the predecessors
Funds of the Small Cap Value Fund, the Diversified Mid Cap Fund, the Diversified
International Fund, the Market Expansion Index Fund, the Bond Fund, the Income
Bond Fund, the Intermediate Bond Fund, the Short-Term Municipal Bond Fund, the
Tax-Free Bond Fund, the Michigan Municipal Bond Fund, the Michigan Municipal
Money Market Fund, and the Cash Management Funds. Prior to _______________,
investment advisory services were provided to the Small Cap Value Fund, the
Diversified Mid Cap Fund, the Diversified International Fund, the Market
Expansion Index Fund, the Bond Fund, the Income Bond Fund, the Intermediate Bond
Fund, the Short-Term Municipal Bond Fund, the Tax-Free Bond Fund, the Michigan
Municipal Bond Fund, and the Michigan Municipal Money Market Fund by NBD.
    

         During the fiscal years ended June 30, 1998, 1997, and 1996, the Funds
of the Trust paid the following investment advisory fees to Banc One Investment
Advisors (except as noted above) and Banc One Investment Advisors voluntarily
waived investment advisory fees as follows:

                                      103
<PAGE>   617

<TABLE>
   
<CAPTION>
                                              ONE GROUP ADVISORY FEES--NET

                                                                      FISCAL YEAR ENDED JUNE 30,
                                                    1998                           1997                          1996
                                                    ----                           ----                          ----
FUND                                       NET             WAIVED            NET         WAIVED          NET           WAIVED
- ----                                       ---             ------            ---         ------          ---           ------

<S>                                     <C>              <C>            <C>            <C>            <C>             <C>       
U.S. Treasury Securities
Money Market                            $ 9,337,795      $2,237,340     $5,992,323     $2,742,727     $3,335,123      $2,120,534
Prime Money Market                      $ 9,806,764      $1,675,435     $7,824,731     $1,899,772     $5,939,373      $2,662,726
Municipal Money Market                  $ 1,491,141      $  596,454     $1,241,937     $  593,593     $1,111,463      $  930,328
Ohio Municipal Money Market             $   252,818      $   60,211     $  231,786     $   36,034     $  171,609      $  114,565
Equity Income                           $ 6,571,128             -0-     $4,104,562     $        0     $1,809,128      $   70,594
Mid Cap Value                           $ 4,758,742             -0-     $4,129,523     $        0     $3,934,183      $   61,237
Mid Cap Growth                          $ 6,492,467             -0-     $4,511,169     $        0     $3,688,445      $   54,262
Equity Index                            $   992,672      $1,985,360     $  547,238     $1,094,476     $  238,008      $  638,315
Large Cap Value                         $ 5,638,325             -0-     $4,726,413     $        0     $3,763,553      $        0
Balanced                                $ 1,178,256      $  191,626     $  684,481     $  142,861     $  306,083      $   92,023
International Equity Index              $ 2,373,749             -0-     $2,201,616     $      837     $1,279,277      $   91,958
Large Cap Growth                        $12,023,999             -0-     $7,948,260     $        0     $5,235,736      $  245,284
Short-Term Bond                         $ 1,879,523      $1,700,459     $1,830,204     $1,830.204     $1,330,873      $1,450,516
Intermediate Tax-Free Bond              $ 1,904,783      $1,025,646     $1,235,203     $  776,825     $  629,789      $  769,809
Municipal Income                        $ 2,184,870      $  624,243     $1,314,694     $  387,974     $  714,573      $  387,167
Ohio Municipal Bond                     $   544,952      $  517,943     $  389,001     $  391,781     $  257,158      $  328,794
Government Bond                         $ 3,714,960      $   80,216     $3,098,420     $  194,800     $2,182,543      $   70,159
Ultra Short-Term Bond                   $   424,770      $  699,133     $  117,314     $  342,966     $   29,293      $  227,497
Treasury Only Money Market              $   518,513             -0-     $  385,087     $        0     $  287,729      $        0
Government Money Market                 $ 1,735,256             -0-     $  848,690     $        0     $  612,362      $    5,166
Kentucky Municipal Bond                 $   469,392      $  117,349     $  270,459     $   78,137     $  108,684      $  132,964
Institutional Prime
Money Market                                  NA ##           NA ##           NA #           NA #            NA*             NA*
Treasury Money Market                         NA ##           NA ##           NA #           NA #            NA*             NA*
Tax-Exempt Money Market                       NA ##           NA ##           NA #           NA #            NA*             NA*
Arizona Municipal Bond                  $ 1,007,240      $  154,639     $  390,737+++  $  126,415+++         NA*             NA*
Texas Tax-Free Bond                           NA ##                           NA #           NA #            NA*             NA*
W. Virginia Municipal Bond              $   365,585      $  103,485     $  121,278+++  $   66,525+++         NA*             NA*
Louisiana Municipal Bond                $   572,161      $  355,668     $  683,535     $  394,121     $  207,766++    $  103,883++
Diversified Equity                      $ 4,485,408             -0-     $2,309,475     $   69,333     $  400,112++    $   51,948++
Small Cap Growth                        $   902,099             -0-     $  699,896     $   30,410     $  184,391++    $   25,531++
High Yield Bond                               NA ##           NA ##           NA #           NA #            NA*             NA*
Investor Growth                         $    35,565      $   21,362     $    1,552     $    6,244++++        NA*             NA*
Investor Growth
& Income                                $    49,435      $   17,732     $    2,046     $    8,237++++        NA*             NA*
Investor Aggressive Growth                    NA ##           NA ##           NA #           NA #            NA*             NA*
Investor Conservative
Growth                                  $     4,622      $   18,489     $      683     $    2,750++++        NA*             NA*
Investor Balanced                       $    53,241      $   11,387     $    3,107     $   12,503++++        NA*             NA*
Investor Fixed Income                         NA ##           NA ##           NA #           NA #            NA*             NA*
Treasury & Agency Fund                  $   232,442      $  232,443     $   99,224     $   99,225+++         NA*             NA*
</TABLE>
    

##       As of June 30, 1998, the Fund had not commenced operations.
#        As of June 30, 1997, the Fund had not commenced operations.
*        As of June 30, 1996, the Fund had not commenced operations.
++       Fees for the period from December 31, 1995 to June 30, 1996.
+++      Fees for the period from January 20, 1997 to June 30, 1997.


                                      104
<PAGE>   618

++++     Fees for the period from December 10, 1996 to June 30, 1997.

   
         Prior to _________, the fiscal year end for the Predecessor Funds was
December 31st. During the fiscal years ended December 31, 1998, 1997, and 1996,
these Funds of the Trust paid the following investment advisory fees to FCNIMCO
and its predecessor advisors and FCNIMCO and such predecessor advisors
voluntarily waived investment advisory fees as follows





<TABLE>
<CAPTION>
                                          ONE GROUP ADVISORY FEES--NET

                                                     FISCAL YEAR ENDED DECEMBER 31,
                                    1998                         1997                       1996
                                    ----                         ----                       ----
FUND                            NET        WAIVED           NET         WAIVED          NET      WAIVED
- ----                            ---        ------           ---         ------          ---      ------
- ------------------------------------------------------------------------------------------------------------
<S>                           <C>        <C>             <C>        <C>               <C>      <C>
Small Cap Value
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Diversified Mid Cap
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Diversified International
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Market Expansion Index
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Bond
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Income Bond
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Intermediate Bond
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Short-Term Municipal
 Bond
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Tax-Free Bond
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Michigan Municipal Bond
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Michigan Municipal
Money Market
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Cash Management
Money Market
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Treasury Cash Management
 Money Market
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Treasury Prime
Cash Management
Money Market
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
U.S. Government Securities
Cash Management Money Market
- ----------------------------- ---------- --------------- ---------- ----------------- -------- -------------
Municipal Cash Management
Money Market
- ------------------------------------------------------------------------------------------------------------
</TABLE>
    

                                      105
<PAGE>   619

   
All investment advisory services are provided to the Funds by Banc One
Investment Advisors pursuant to an investment advisory agreement dated January
11, 1993 (the "INVESTMENT ADVISORY AGREEMENT"). The Investment Advisory
Agreement (and the International Sub-Investment Advisory Agreement and the High
Yield Sub-Investment Advisory Agreement described immediately following,
collectively, the "ADVISORY AND SUB-ADVISORY AGREEMENTS") will continue in
effect as to a particular Fund from year to year, if such continuance is
approved at least annually by the Trust's Board of Trustees or by vote of a
majority of the outstanding Shares of such Fund (as defined under "ADDITIONAL
INFORMATION--Miscellaneous" in this Statement of Additional Information), and a
majority of the Trustees who are not parties to the respective investment
advisory agreements or interested persons (as defined in the Investment Company
Act of 1940) of any party to the respective investment advisory agreements by
votes cast in person at a meeting called for such purpose. The Advisory
Agreement and International Sub-Advisory Agreements were renewed by the Trust's
Board of Trustees at their quarterly meeting on August 20, 1998. The Advisory
and Sub-Advisory Agreements are terminable as to a particular Fund at any time
on 60 days' written notice without penalty by the Trustees, by vote of a
majority of the outstanding Shares of that Fund, or by the Fund's Advisor or
Sub-Advisor as the case may be. The Advisory and Sub-Advisory Agreements also
terminate automatically in the event of any assignment, as defined in the 1940
Act.
    

The Advisory and Sub-Advisory Agreements each provide that the respective
Advisor or Sub-Advisor shall not be liable for any error of judgment or mistake
of law or for any loss suffered by the Trust in connection with the performance
of the respective investment advisory agreements, except a loss resulting from a
breach of fiduciary duty with respect to the receipt of compensation for
services or a loss resulting from willful misfeasance, bad faith, or gross
negligence on the part of Banc One Investment Advisors or Sub-Advisor in the
performance of its duties, or from reckless disregard by it of its duties and
obligations thereunder.

   
Goldman Sachs Asset Management, formerly the investment Sub-Advisor to the Ultra
Short-Term Bond Fund, $26,251 in sub-advisory fees from Banc One Advisors for
the fiscal year ended June 30, 1996.
    

INDEPENDENCE INTERNATIONAL ASSOCIATES, INC.

   
Independence International Associates, Inc. ("INDEPENDENCE INTERNATIONAL")
serves as investment Sub-Advisor to the International Equity Index Fund pursuant
to an agreement (the "INTERNATIONAL SUB-INVESTMENT ADVISORY AGREEMENT") with
Banc One Investment Advisors dated January 11, 1993. Independence International
is a wholly-owned subsidiary of John Hancock Asset Management, Inc. and an
indirect, wholly-owned subsidiary of John Hancock Mutual Life Insurance Company.
Boston International Advisors, Inc., the predecessor of Independence
International, received $212,352 in sub-advisory fees from Banc One Investment
Advisors for the fiscal year ended June 30, 1996; $315,098 in sub-advisory fees
from Banc One Investment Advisors for the fiscal 
    


                                      106
<PAGE>   620

year ended June 30, 1997; and $416,939 in sub-advisory fees from Banc One
Investment Advisors for the fiscal year ended June 30, 1998.

BANC ONE HIGH YIELD PARTNERS, LLC

   
Banc One High Yield Partners, LLC serves as investment Sub-Advisor to the High
Yield Bond Fund pursuant to an agreement with Banc One Investment Advisors (the
"HIGH YIELD INVESTMENT ADVISORY AGREEMENT"). The Sub-Advisor was formed in June,
1998 to provide investment advisory services related to high yield, high risk
assets to various clients, including the Fund. The Sub-Advisor is controlled by
Banc One Investment Advisors and Pacholder Associates, Inc., an investment
advisory firm which specializes in high yield, high risk, fixed income
securities. Banc One Investment Advisors, Pacholder Associates, Inc. or the
Sub-Advisor have limited experience in managing an open-end investment company
investing primarily in high yield, high risk bonds. For its services, the
Sub-Advisor is entitled to a fee, which is calculated daily and paid monthly by
Banc One Investment Advisors, equal to .70% of the Fund's average daily net
assets. The Sub-Advisor has voluntarily agreed to waive all or part of its fees.
This fee waiver is voluntary and may be terminated at any time.
    

GLASS-STEAGALL ACT

   
In 1971, the United States Supreme Court held in Investment Company Institute v.
Camp that the federal statute commonly referred to as the Glass-Steagall Act
prohibits a national bank from operating a Fund for the collective investment of
managing agency accounts. Subsequently, the Board of Governors of the Federal
Reserve System (the "BOARD") issued a regulation and interpretation to the
effect that the Glass-Steagall Act and such decision: (a) forbid a bank holding
company registered under the Federal Bank Holding Company Act of 1956 (the
"HOLDING COMPANY ACT") or any non-bank affiliate thereof from sponsoring,
organizing, or controlling a registered, open-end investment company
continuously engaged in the issuance of its Shares, but (b) do not prohibit such
a holding company or affiliate from acting as investment Advisor, transfer
agent, and custodian to such an investment company. In 1981, the United States
Supreme Court held in Board of Governors of the Federal Reserve System v.
Investment Company Institute that the Board did not exceed its authority under
the Holding Company Act when it adopted its regulation and interpretation
authorizing bank holding companies and their non-bank affiliates to act as
investment advisors to registered closed-end investment companies. In the Board
of Governors case, the Supreme Court also stated that if a national bank
complied with the restrictions imposed by the Board in its regulation and
interpretation authorizing bank holding companies and their non-bank affiliates
to act as investment advisors to investment companies, a national bank
performing investment advisory services for an investment company would not
violate the Glass-Steagall Act. In addition, state securities laws on this issue
may differ from the interpretations of federal law expressed herein and banks
and financial institutions may be required to register as dealers pursuant to
state law.
    

In the Investment Advisory Agreement with the Trust, Banc One Investment
Advisors has represented to the Trust that it possesses the legal authority to
perform the investment


                                      107
<PAGE>   621

advisory services contemplated by the agreement and described in the
Prospectuses and this Statement of Additional Information without violation of
applicable statutes and regulations. Future changes in either federal or state
statutes and regulations relating to the permissible activities of banks or bank
holding companies and the subsidiaries or affiliates of those entities, as well
as further judicial or administrative decisions or interpretations of present
and future statutes and regulations, could prevent or restrict Banc One
Investment Advisors from continuing to perform such services for the Trust.
Depending upon the nature of any changes in the services which could be provided
by Banc One Investment Advisors, the Board of Trustees of the Trust would review
the Trust's relationship with Banc One Investment Advisors and consider taking
all action necessary in the circumstances.

Should future legislative, judicial, or administrative action prohibit or
restrict the proposed activities of BANK ONE CORPORATION subsidiary banks or
their correspondent banks in connection with customer purchases of Shares of the
Trust, these banks might be required to alter materially or discontinue the
services offered by them to customers. It is not anticipated, however, that any
change in the Trust's method of operations would affect its net asset value per
Share or result in financial losses to any customer.

PORTFOLIO TRANSACTIONS

   
Pursuant to the Advisory and Sub-Advisory Agreements, Banc One Investment
Advisors and the applicable Sub-Advisor determine, subject to the general
supervision of the Board of Trustees of the Trust and in accordance with each
Fund's investment objective and restrictions, which securities are to be
purchased and sold by each such Fund and which brokers are to be eligible to
execute its portfolio transactions. Purchases and sales of portfolio securities
with respect to the Money Market Funds, the Bond Funds, the Funds of Funds and
(to a varying degree) the Balanced Fund usually are principal transactions in
which portfolio securities are purchased directly from the issuer or from an
underwriter or market maker for the securities. Purchases from underwriters of
portfolio securities generally include (but not in the case of mutual fund
shares purchased by the Funds of Funds) a commission or concession paid by the
issuer to the underwriter and purchases from dealers serving as market makers
may include the spread between the bid and asked price. Transactions on stock
exchanges (other than certain foreign stock exchanges) involve the payment of
negotiated brokerage commissions. Transactions in the over-the-counter market
are generally principal transactions with dealers. With respect to the
over-the-counter market, the Trust, where possible, will deal directly with the
dealers who make a market in the securities involved except in those
circumstances where better price and execution are available elsewhere. While
Banc One Investment Advisors or the applicable Sub-Advisor generally seeks
competitive spreads or commissions, the Trust may not necessarily pay the lowest
spread or commission available on each transaction, for reasons discussed below.
    

Allocation of transactions, including their frequency, to various dealers is
determined by Banc One Investment Advisors and the applicable Sub-Advisor with
respect to the Funds each serves based on their best judgment and in a manner
deemed fair and reasonable to 


                                      108
<PAGE>   622

Shareholders. The primary consideration is prompt execution of orders in an
effective manner at the most favorable price. Subject to this consideration,
dealers who provide supplemental investment research to Banc One Investment
Advisors or the applicable Sub-Advisor may receive orders for transactions by
the Trust, even if such dealers charge commissions in excess of the lowest rates
available, provided such commissions are reasonable in light of the value of
brokerage and research services received. Such research services may include,
but are not be limited to, analysis and reports concerning economic factors and
trends, industries, specific securities, and portfolio strategies. Information
so received is in addition to and not in lieu of services required to be
performed by Banc One Investment Advisors or the applicable Sub-Advisor and does
not reduce the advisory fees payable to Banc One Investment Advisors or the
applicable Sub-Advisor. Such information may be useful to Banc One Investment
Advisors or the applicable Sub-Advisor in serving both the Trust and other
clients and, conversely, supplemental information obtained by the placement of
business of other clients may be useful to Banc One Investment Advisors or the
applicable Sub-Advisor in carrying out their obligations to the Trust. In the
last fiscal year, Banc One Investment Advisors directed brokerage commissions to
brokers who provided research services to Banc One Investment Advisors. Total
compensation paid to such brokers amounted to $14,566,893.79.

   
The Trust will not execute portfolio transactions through, acquire portfolio
securities issued by, make savings deposits in, or enter into repurchase or
reverse repurchase agreements with its investment advisors or their affiliates
except as may be permitted under the 1940 Act, and will not give preference to
correspondents of BANK ONE CORPORATION subsidiary banks with respect to such
transactions, securities, savings deposits, repurchase agreements, and reverse
repurchase agreements.
    

During the Trust's fiscal year ended June 30, 1996, the Trust paid brokerage
commissions to Goldman for brokerage services provided as follows:

   
<TABLE>
<CAPTION>
FUND                                                                                                 COMMISSIONS PAID

<S>                                                                                                         <C>    
Equity Income                                                                                               $ 5,750
Mid Cap Value                                                                                               $ 1,810
Mid Cap Growth                                                                                              $11,714
Equity Index                                                                                                $42,243
Large Cap Value                                                                                             $10,650
Balanced                                                                                                    $ 9,602
Small Cap Growth                                                                                            $ 2,265
Diversified Equity                                                                                          $ 1,647
</TABLE>
    

During the Trust's fiscal year ended June 30, 1996, the percentage of the
Trust's aggregate brokerage commissions paid to Goldman was 1.26% and the
percentage of the Trust's aggregate dollar amount of transactions involving the
payment of commissions effected through Goldman was 1.47%.


   
In the fiscal years ended June 30, 1998, 1997, and 1996, each of the Funds of
the Trust (except for the Funds identified below as having fiscal years
previously ending December 
    


                                      109
<PAGE>   623

   
31st) that paid brokerage commissions and the amounts paid for each year were as
follows:


<TABLE>
<CAPTION>
                                    THE ONE GROUP BROKERAGE COMMISSIONS

FISCAL YEAR ENDED JUNE 30,
- ---------------------------------------------------------------------------------------
FUND                   1998                 1997                  1996
- ----                   ----                 ----                  ----
- ---------------------- -------------------- --------------------- ---------------------
<S>                    <C>                  <C>                   <C>       
Equity Income          $  331,556           $  395,450            $   96,204
- ---------------------- -------------------- --------------------- ---------------------
Mid Cap Value          $1,541,217           $1,570,859            $  613,774
- ---------------------- -------------------- --------------------- ---------------------
Mid Cap Growth         $2,455,346           $3,199,337            $2,798,442
- ---------------------- -------------------- --------------------- ---------------------
Equity Index           $   72,702           $  162,178            $   56,155
- ---------------------- -------------------- --------------------- ---------------------
Large Cap Value        $  722,191           $1,378,450            $2,126,632
- ---------------------- -------------------- --------------------- ---------------------
Balanced               $  154,837           $  194,187            $   61,678
- ---------------------- -------------------- --------------------- ---------------------
International Equity   $  514,660           $  349,010            $  176,140
Index
- ---------------------- -------------------- --------------------- ---------------------
Large Cap Growth       $2,935,851           $1,285,883            $  596,397
- ---------------------- -------------------- --------------------- ---------------------
Small Cap Growth       $  180,460           $  194,127            $   43,039
- ---------------------- -------------------- --------------------- ---------------------
Diversified Equity     $  763,394           $1,005,409            $  224,373
- ---------------------------------------------------------------------------------------
</TABLE>


<TABLE>
<CAPTION>
                                    THE ONE GROUP BROKERAGE COMMISSIONS

FISCAL YEAR ENDED DECEMBER 31,


- ---------------------------------------------------------------------------------------
FUND                   1998                 1997                  1996
- ----                   ----                 ----                  ----
- ---------------------- -------------------- --------------------- ---------------------
<S>                    <C>                  <C>                   <C>       
Small Cap Value
- ---------------------- -------------------- --------------------- ---------------------
Diversified Mid Cap
- ---------------------- -------------------- --------------------- ---------------------
Diversified
International
- ---------------------- -------------------- --------------------- ---------------------
Market Expansion
Index
- ---------------------------------------------------------------------------------------
</TABLE>
    

Investment decisions for each Fund of the Trust are made independently from
those for the other Funds or any other investment company or account managed by
Banc One Investment Advisors or the applicable Sub-Advisor. Any such other
investment company or account may also invest in the same securities as the
Trust. When a purchase or sale of the same security is made at substantially the
same time on behalf of a given Fund and another Fund, investment company or
account (or, in the case of the International Equity Index Fund, another
account), the transaction will be averaged as to price, and available


                                      110
<PAGE>   624

investments allocated as to amount, in a manner which Banc One Investment
Advisors or the applicable Sub-Advisor of the given Fund believes to be
equitable to the Fund(s) and such other investment company or account. In some
instances, this investment procedure may adversely affect the price paid or
received by a Fund or the size of the position obtained by a Fund. To the extent
permitted by law, Banc One Investment Advisors and the applicable Sub-Advisor
may aggregate the securities to be sold or purchased by it for a Fund with those
to be sold or purchased by it for other Funds or for other investment companies
or accounts in order to obtain best execution. As provided by the Investment
Advisory and Sub-Advisory Agreements, in making investment recommendations for
the Trust, Banc One Investment Advisors and the applicable Sub-Advisor will not
inquire or take into consideration whether an issuer of securities proposed for
purchase or sale by the Trust is a customer of Banc One Investment Advisors or
the applicable Sub-Advisor or their parents or subsidiaries or affiliates and,
in dealing with its commercial customers, Banc One Investment Advisors and the
applicable Sub-Advisor and their respective parent, subsidiaries, and affiliates
will not inquire or take into consideration whether securities of such customers
are held by the Trust.

ADMINISTRATOR

   
The One Group Services Company serves as Administrator (the "ADMINISTRATOR") to
each Fund of the Trust pursuant to a Management and Administration Agreement
with the Trust (the "ADMINISTRATION AGREEMENT"). The Board of Trustees of the
Trust approved The One Group Services Company as the sole Administrator for each
Fund beginning December 1, 1995. The Administrator assists in supervising all
operations of each Fund to which it serves as Administrator (other than those
performed under the respective investment advisory agreements and Custodian and
Transfer Agency Agreements for that Fund).
    

Under the Administration Agreement, the Administrator has agreed to price the
portfolio securities of each Fund it serves and to compute the net asset value
and net income of such Funds on a daily basis, to maintain office facilities for
the Trust, to maintain each such Fund's financial accounts and records, and to
furnish the Trust statistical and research data, data processing, clerical,
accounting, and bookkeeping services, and certain other services required by the
Trust with respect to each such Fund. The Administrator prepares annual and
semi-annual reports to the SEC, prepares federal and State tax returns, prepares
filings with State securities commissions, and generally assists in all aspects
of the Trust's operations other than those performed under the investment
advisory agreements, and Custodian and Transfer Agency Agreements. Under the
Administration Agreement, the Administrator may delegate all or any part of its
responsibilities thereunder.

Banc One Investment Advisors also serves as Sub-Administrator to each Fund of
the Trust, pursuant to an agreement between the Administrator and Banc One
Investment Advisors. Pursuant to this agreement, Banc One Investment Advisors
performs many of the Administrator's duties, for which Banc One Investment
Advisors receives a fee paid by the Administrator.





                                      111
<PAGE>   625

   
The Trust paid fees for administrative services to The One Group Services
Company as Administrator; and to 440 Financial Management, as previous
Administrator of the Trust ("440"), for the fiscal years ended June 30, 1998,
1997, and 1996 as follows:

<TABLE>
<CAPTION>
                                    ONE GROUP ADMINISTRATION FEES--NET

                                                THE ONE GROUP                       FISCAL YEAR ENDED JUNE 30, 1998
                                              SERVICES COMPANY                      BANC ONE INVESTMENT ADVISORS**
                                              ----------------                      ------------------------------
FUND                                                 NET              WAIVED            NET              WAIVED
- ----                                                 ---              ------            ---              ------


<S>                                                 <C>                 <C>            <C>                 <C>     
U.S. Treasury Securities Money Market               $2,892,564          $570,303       $1,953,193          $      0
Prime Money Market                                  $2,909,462          $499,662       $1,964,556          $      0
Municipal Money Market                              $  545,873          $ 67,499       $  363,608          $      0
Ohio Municipal Money Market                         $   57,990          $ 71,908       $   39,212          $      0
Equity Income                                       $  866,925          $      0       $  585,415          $      0
Mid Cap Value                                       $  627,733          $      0       $  424,072          $      0
Mid Cap Growth                                      $  856,657          $      0       $  578,193          $      0
Equity Index                                        $  593,918          $631,314       $  398,167          $      0
Large Cap Value                                     $  743,765          $      0       $  502,444          $      0
Balanced                                            $   93,135          $188,687       $   62,825          $      0
International Equity Index                          $  495,338          $      0       $  334,504          $      0
Large Cap Growth                                    $1,589,738          $      0       $1,070,862          $      0
Short-Term Bond                                     $  582,384          $      0       $  393,556          $      0
Intermediate Tax-Free Bond                          $  476,747          $      0       $  322,115          $      0
Municipal Income                                    $  609,675          $      0       $  411,186          $      0
Ohio Municipal Bond                                 $  172,939          $      0       $  116,807          $      0
Government Bond                                     $  628,220          $326,624       $  424,114          $      0
Ultra Short-Term Bond                               $        0          $334,196       $        0          $      0
Treasury Only Money Market                          $        0          $      0       $  321,862          $      0
Government Money Market                             $        0          $      0       $1,084,467          $      0
Institutional Prime Money Market                           NA*               NA*              NA*               NA*
Treasury Money Market                                      NA*               NA*              NA*               NA*
Tax-Exempt Money Market                                    NA*               NA*              NA*               NA*
Arizona Municipal Bond                              $  235,850          $ 27,440       $  159,048          $      0
Kentucky Municipal Bond                             $  127,280          $      0       $   85,987          $      0
Texas Tax-Free Bond                                        NA*               NA*              NA*               NA*
W. Virginia Municipal Bond                          $   87,100          $ 24,557       $   58,836          $      0
Louisiana Municipal Bond                            $  150,915          $      0       $  102,041          $      0
Diversified Equity                                  $  591,870          $      0       $  399,405          $      0
Small Cap Growth                                    $   96,910          $ 37,328       $   65,129          $      0
High Yield Bond                                            NA*               NA*              NA*               NA*
Investor Growth                                     $        0          $113,852       $        0          $      0
Investor Growth & Income                            $        0          $134,333       $        0          $      0
Investor Aggressive Growth                                 NA*               NA*              NA*               NA*
Investor Conservative Growth                        $        0          $ 46,223       $        0          $      0
</TABLE>
    


                                      112
<PAGE>   626

<TABLE>
<S>                                                 <C>                 <C>            <C>                 <C>     
Investor Balanced                                   $        0          $129,257       $        0          $      0
Investor Fixed Income                                      NA*               NA*              NA*               NA*
Treasury & Agency                                   $   41,644          $120,468       $   27,972          $      0
</TABLE>


*    As of June 30, 1998, the Fund had not commenced operations.


**   These fees were paid by The One Group Services Company to Banc One
     Investment Advisors pursuant to the Sub-Administration Agreement.

                                      113
<PAGE>   627

<TABLE>
   
<CAPTION>
ONE GROUP ADMINISTRATION FEES--NET
                                                THE ONE GROUP                       FISCAL YEAR ENDED JUNE 30, 1997
                                              SERVICES COMPANY                      BANC ONE INVESTMENT ADVISORS**
                                              ----------------                      ------------------------------
FUND                                                 NET              WAIVED            NET              WAIVED
- ----                                                 ---              ------            ---              ------


<S>                                                 <C>                 <C>            <C>                  <C>       
U.S. Treasury Securities                            $4,041,160          $ 52,457       $                    $     0
Money Market
Prime Money Market                                  $4,325,620          $268,513       $1,666,976           $     0
Municipal Money Market                              $  821,921          $ 45,236       $  314,733           $     0
Ohio Municipal Money Market                         $  168,236          $ 79,377       $  107,188           $     0
Equity Income                                       $  916,621          $      0       $  332,802           $     0
Mid Cap Value                                       $  922,753          $      0       $  334,826           $     0
Mid Cap Growth                                      $1,007,999          $      0       $  365,770           $     0
Equity Index                                        $  329,854          $574,004       $  328,342           $     0
Large Cap Value                                     $1,056,104          $      0       $  383,222           $     0
Balanced                                            $   94,269          $116,194       $   76,370           $     0
International Equity Index                          $  662,008          $      0       $  240,084           $     0
Large Cap Growth                                    $1,775,503          $      0       $  644,453           $     0
Short-Term Bond                                     $1,008,923          $      0       $  366,010           $     0
Intermediate Tax-Free Bond                          $  554,163          $      0       $  201,205           $     0
Municipal Income                                    $  609,095          $ 16,541       $  227,031           $     0
Ohio Municipal Bond                                 $  213,314          $  1,857       $   78,076           $     0
Government Bond                                     $  990,039          $220,036       $  439,098           $     0
Ultra Short-Term Bond                               $   60,695          $ 95,720       $   50,007           $     0
Treasury Only Money Market                          $  240,680          $      0       $  240,061           $     0
Government Money Market                             $  530,431          $      0       $  530,415           $     0
Institutional Prime                                        NA*               NA*              NA*               NA*
Money Market
Treasury Money Market                                      NA*               NA*              NA*               NA*
Tax-Exempt Money Market                                    NA*               NA*              NA*               NA*
Arizona Municipal Bond                              $  140,206          $ 49,819       $   69,221           $     0
Kentucky Municipal Bond                             $  127,957          $      0       $   46,478           $     0
Texas Tax-Free Bond                                        NA*               NA*              NA*               NA*
W. Virginia Municipal Bond                          $   58,427          $ 10,580       $   25,040           $     0
Louisiana Municipal Bond                            $  297,050          $      0       $  107,762           $     0
Diversified Equity                                  $  531,250          $      0       $  192,876           $     0
Small Cap Growth                                    $   92,752          $ 70,432       $   59,214           $     0
High Yield Bond                                            NA*               NA*              NA*               NA*
Investor Growth                                     $   15,583          $      0       $        0           $     0
Investor Growth & Income                            $        0          $ 20,566       $        0           $     0
Investor Aggressive Growth                                 NA*               NA*              NA*               NA*
Investor Conservative Growth                        $        0          $  6,866       $        0           $     0
</TABLE>
    


                                      114
<PAGE>   628

<TABLE>
   
<S>                                                 <C>                 <C>            <C>                  <C>       
Investor Balanced                                   $        0          $ 31,220       $        0           $     0
Investor Fixed Income                                      NA*               NA*              NA*               NA*
Treasury & Agency                                   $   13,891          $ 68,143       $   29,765           $     0
</TABLE>


*    As of June 30, 1997, the Fund had not commenced operations.


**   These fees were paid by The One Group Services Company to Banc One
     Investment Advisors pursuant to the Sub-Administration Agreement.
    




                                      115
<PAGE>   629

<TABLE>
   
<CAPTION>
                                       ONE GROUP ADMINISTRATION FEES--NET



                                      THE ONE GROUP       FISCAL YEAR ENDED JUNE 30, 1996
                                        SERVICES          BANC ONE INVESTMENT ADVISORS**          440***
FUND                                    COMPANY


                           NET             WAIVED            NET           WAIVED          NET         WAIVED
                           ---             ------            ---           ------          ---         ------

<S>                      <C>               <C>           <C>               <C>         <C>           <C>     
U.S. Treasury Securities
Money Market             $1,675,933        $ 23,824      $  928,127        $     0     $  881,386    $ 19,060
Prime Money Market       $2,490,499        $      0      $1,463,271        $     0     $1,611,838    $      0
Municipal Money Market   $  504,611        $ 58,625      $  340,160        $     0     $  328,817    $ 82,052
Ohio Municipal Money 
     Market              $    9,933        $ 87,195      $   53,819        $     0     $   22,276    $ 39,800
Equity Income            $  286,663        $      0      $  151,456        $     0     $  136,804    $      0
Mid Cap Value            $  543,544        $      0      $  321,420        $     0     $  357,658    $      0
Mid Cap Growth           $  511,634        $      0      $  301,050        $     0     $  332,353    $      0
Equity Index             $  219,301        $ 96,276      $  165,797        $     0     $   52,623    $119,116
Large Cap Value          $  532,314        $      0      $  300,440        $     0     $  283,851    $ 32,509
Balanced                 $   19,184        $ 48,482      $   33,779        $     0     $   22,718    $ 11,794
International Equity 
     Index               $  307,633        $      0      $  171,529        $     0     $  172,763    $      0
Large Cap Growth         $  778,543        $      0      $  441,303        $     0     $  457,430    $      0
Short-Term Bond          $  471,594        $      0      $  275,961        $     0     $  301,887    $      0
Intermediate Tax-Free 
     Bond                $  222,203        $      0      $  138,734        $     0     $  167,244    $      0
Municipal Income         $  210,905        $ 43,781      $  142,512        $     0     $  110,442    $ 43,233
Ohio Municipal Bond      $   81,876        $ 15,630      $   57,825        $     0     $   55,179    $ 11,740
Government Bond          $  544,937        $  6,947      $  297,480        $     0     $  270,620    $ 12,171
Ultra Short-Term Bond    $        0        $ 50,706      $   28,274                    $        0    $ 35,162
Treasury Only Money 
     Market              $  113,945        $      0      $  179,830        $     0     $   65,888    $      0
Government Money Market  $  232,688        $      0      $  385,955        $     0     $  153,141    $    131
Institutional Prime
Money Market                    NA*             NA*             NA*            NA*            NA*         NA*
Treasury Money Market           NA*             NA*             NA*            NA*            NA*         NA*
Tax-Exempt Money Market         NA*             NA*             NA*            NA*            NA*         NA*
Arizona Municipal Bond          NA*             NA*             NA*            NA*            NA*         NA*
Kentucky Municipal Bond  $   38,104        $  1,196      $   23,883        $     0     $   26,310    $  2,256
Texas Tax-Free Bond             NA*             NA*             NA*            NA*            NA*         NA*
W. Virginia Municipal 
     Bond                       NA*             NA*             NA*            NA*            NA*         NA*
Louisiana Municipal Bond $   86,078        $      0     $   31,165+        $     0     $        0    $      0
Diversified Equity       $  101,245        $      0     $   36,656+        $     0     $        0    $      0
Small Cap Growth         $   47,011        $      0     $   17,021+        $     0     $        0    $      0
High Yield Bond                 NA*             NA*             NA*            NA*            NA*         NA*
Investor Growth                 NA*             NA*             NA*            NA*            NA*         NA*
Investor Growth & Income        NA*             NA*             NA*            NA*            NA*         NA*
Investor Aggressive 
     Growth                     NA*             NA*             NA*            NA*            NA*         NA*
Investor Conservative 
     Growth                     NA*             NA*             NA*            NA*            NA*         NA*
Investor Balanced               NA*             NA*             NA*            NA*            NA*         NA*
Investor Fixed Income           NA*             NA*             NA*            NA*            NA*         NA*
Treasury & Agency               NA*             NA*             NA*            NA*            NA*         NA*
</TABLE>
    


*    As of June 30, 1996, the Fund had not commenced operations.

   
**   These were fees paid by The One Group Services Company to Banc One
Investment Advisors pursuant to the Sub-Administration Agreement for the period
from December 1, 1995 through June 30, 1996, and by 440 Financial Management for
the period June 30, 1995 to December 1, 1995.
    

***  These were fees paid from July 1, 1995 through early November 30, 1995.

+    These fees were paid from March 26, 1996 through June 30, 1996.

                                      116
<PAGE>   630

   
Prior to March___, 1998, administrative services were provided to the
Predecessor Funds by FCNIMCO and BISYS and, with respect to the Michigan
Municipal Money Market Fund for the period January 1, 1996 through September 16,
1996, NBD. These Funds paid fees for administrative services to FCNIMCO and
BISYS; and to NBD, as previous Administrator of the Michigan Municipal Money
Market Fund, for the fiscal years ended December 31, 1998, 1997, and 1996 as
follows:



[TABLES TO BE INCLUDED IN B FILING]
    



                                      117
<PAGE>   631

         Unless sooner terminated, the Administration Agreement between the
Trust and The One Group Services Company will continue in effect through
November 30, 1998. The Administration Agreement thereafter shall be renewed
automatically for successive one year terms, unless written notice not to renew
is given by the non-renewing party to the other party at least sixty days prior
to the expiration of the then-current term. The Administration Agreement will be
reviewed and ratified at least annually by the Trust's Board of Trustees,
provided that the Administration Agreement is also reviewed and ratified by the
majority of the Trust's Trustees who are not parties to the Administration
Agreement or interested persons (as defined in the 1940 Act) of any party to the
Administration Agreement, by vote cast in person at a meeting called for the
purpose of reviewing and ratifying the Administration Agreement. The
Administration Agreement is terminable with respect to a particular Trust only
upon mutual agreement of the parties to the Administration Agreement and for
cause (as defined in the Administration Agreement) by the party alleging cause,
on not less than sixty days' notice by the Trust's Board of Trustees or by The
One Group Services Company.

The Administration Agreement provides that the Administrator shall not be liable
for any error of judgment or mistake of law or any loss suffered by the Trust in
connection with the matters to which the Administration Agreement relates,
except a loss resulting from willful misfeasance, bad faith, or negligence in
the performance of its duties, or from the reckless disregard by it of its
obligations and duties thereunder.

DISTRIBUTOR

   
The One Group Services Company serves as Distributor to each Fund of the Trust
pursuant to its Distribution Agreement with the Trust (the "DISTRIBUTION
AGREEMENT"). The Board of Trustees of the Trust approved The One Group Services
Company as the sole Distributor beginning November 1, 1995. Unless otherwise
terminated, the Distribution Agreement will continue in effect until October 31,
1998 and will continue from year to year if approved at least annually (i) by
the Trust's Board of Trustees or by the vote of a majority of the outstanding
Shares of the Funds (see "ADDITIONAL INFORMATION-- Miscellaneous," in this
Statement of Additional Information) that are parties to the Distribution
Agreement, and (ii) by the vote of a majority of the Trustees of the Trust who
are not parties to the Distribution Agreement or interested persons of any such
party, cast in person at a meeting called for the purpose of voting on such
approval. The agreement may be terminated in the event of its assignment, as
defined in the 1940 Act. The One Group Services Company is a broker-dealer
registered with the Securities and Exchange Commission, and is a member of the
National Association of Securities Dealers, Inc.
    

DISTRIBUTION PLAN

The operation and fees with respect to Class A Shares, Class B Shares, Class C
Shares, and Service Class Shares of the Trust payable under the Trust's
Distribution and Shareholder Services Plans, to which Class A Shares, Class B
Shares, Class C Shares, and Service Class Shares of each Fund of the Trust are
subject, are described in each such Fund's Prospectuses and in the Multiple
Class Plan.



                                      118
<PAGE>   632

   
The Distribution and Shareholder Services Plan with respect to Class A Shares
(the "Distribution Plan") was initially approved on July 28, 1989 by the Trust's
Board of Trustees, including a majority of the Trustees who are not interested
persons of the Trust (as defined in the 1940 Act) and who have no direct or
indirect financial interest in the Distribution Plan (the "INDEPENDENT
TRUSTEES"). The Distribution Plan originally applied to the single class of
Shares of each Fund of the Trust that existed prior to the offering of the
Funds' Shares as five separate classes. An amendment to the Distribution Plan
was approved by the Independent Trustees on October 21, 1991, and became
effective on February 7, 1992. Such amendment limited fees under the
Distribution Plan only to the Class A Shares of each Fund. The Distribution Plan
was amended again on February 11, 1993 in order to make Retirement Class Shares
(now the Service Class Shares) subject to distribution fees. The Distribution
Plan was further amended on February 29, 1996, to eliminate certain "defensive"
provisions of the Distribution Plan. A Distribution and Shareholder Services
Plan (the "CDSC PLAN") for Class B and Class C Shares was initially approved on
August 12, 1993 by the Independent Trustees. The CDSC Plan was re-executed on
December 13, 1995 and amended on February 20, 1997. Prior to February 7, 1992,
distribution fees were waived with respect to every Fund of the Trust except the
U.S. Treasury Securities Money Market Fund and the Prime Money Market Fund.
    

During the fiscal year ending June 30, 1998, the distribution fees paid by the
Class A, Class B, Class C and Service Class Shares (formerly Retirement Class
Shares) of the Trust to The One Group Services Company were as follows:


<TABLE>
   
<CAPTION>
                                                                                 SERVICE
FUND                           DISTRIBUTOR             CLASS A       CLASS B        CLASS C       CLASS


<S>                            <C>                  <C>           <C>               <C>          <C>
U.S. Treasury Securities
Money Market                   One Group Ser.       $1,870,320    $    1,370        $     4       -
Prime Money Market             One Group Ser.       $1,336,837    $    9,530              -       -
Municipal Money Market         One Group Ser.       $  243,989             -              -       -
Ohio Municipal Money Market    One Group Ser.       $   91,966             -              -       -
Equity Income                  One Group Ser.       $  247,834    $1,218,721        $ 3,516       -
Mid Cap Value                  One Group Ser.       $   71,119    $  253,701              -       -
Mid Cap Growth                 One Group Ser.       $  168,985    $  638,750        $ 1,384       -
Equity Index                   One Group Ser.       $  389,725    $2,521,768        $ 5,666       -
Large Cap Value                One Group Ser.       $   41,564    $  131,570              -       -
Value                          One Group Ser.       $  100,049    $  738,989              -       -
International Equity Index     One Group Ser.       $   41,768    $  113,966        $   154       -
Large Cap Growth               One Group Ser.       $  395,550    $1,952,771        $ 1,498       -
Short-Term Bond                One Group Ser.       $   44,939    $   36,337              -       -
Intermediate Tax-Free Bond     One Group Ser.       $   27,396    $   40,944              -       -
Municipal Income               One Group Ser.       $  176,867    $  413,746        $ 6,903       -
Ohio Municipal Bond            One Group Ser.       $   41,056    $  170,689              -       -
Government Bond                One Group Ser.       $   82,779    $  136,972              -       -
Ultra Short-Term Bond          One Group Ser.       $   91,457    $   25,723              -       -
Treasury Only Money Market     One Group Ser.       -                      -              -       -
Government Money Market        One Group Ser.       -                      -              -       -
Institutional Prime Money 
     Market*                   One Group Ser.       -                      -              -       -
Kentucky Municipal Bond        One Group Ser.       $   15,661    $   32,901              -       -
Treasury Money Market*         One Group Ser.
Tax-Exempt Money Market*       One Group Ser.
</TABLE>
    


                                      119
<PAGE>   633

<TABLE>
   
<S>                            <C>                  <C>           <C>               <C>          <C>
Arizona Municipal Bond         One Group Ser.       $    3,070    $      364              -       -
Texas Tax-Free Bond*           One Group Ser.
W. Virginia Municipal Bond     One Group Ser.       $    3,233    $   13,282              -       -
Louisiana Municipal Bond       One Group Ser.       $  121,555    $   38,855              -       -
Diversified Equity             One Group Ser.       $  154,965    $  160,647        $ 1,566       -
Small Cap Growth               One Group Ser.       $   48,572    $   55,214        $   191       -
High Yield Bond*               One Group Ser.
Investor Growth                One Group Ser.       $   56,780    $  326,605        $40,419       -
Investor Growth & Income       One Group Ser.       $   45,993    $  391,056        $24,289       -
Investor Aggressive Growth*    One Group Ser.
Investor Conservative Growth   One Group Ser.       $   12,778    $  162,370        $19,234       -
Investor Balanced              One Group Ser.       $   32,762    $  296,604        $26,669       -
Investor Fixed Income*         One Group Ser.
Treasury & Agency              One Group Ser.       $   26,930    $   29,440              -       -
</TABLE>
    


*  These Funds had not commenced operations as of June 30, 1998.



                                      120
<PAGE>   634

In accordance with Rule 12b-1 under the 1940 Act, the Distribution Plan and CDSC
Plan may be terminated with respect to the Class A Shares, Class B Shares, Class
C Shares or Service Class Shares of any Fund by a vote of a majority of the
Independent Trustees, or by a vote of a majority of the outstanding Class A
Shares, Class B Shares, Class C Shares or Service Class Shares, respectively, of
that Fund. The Distribution Plan and CDSC Plan may be amended by vote of the
Trust's Board of Trustees, including a majority of the Independent Trustees,
cast in person at a meeting called for such purpose, except that any change in
the Distribution Plan or Class B Distribution Plan that would materially
increase the distribution fee with respect to the Class A Shares, Class B
Shares, Class C Shares or Service Class Shares of a Fund requires the approval
of that Fund's Class A, Class B, Class C or Service Class Shareholders,
respectively. The Trust's Board of Trustees will review on a quarterly and
annual basis written reports of the amounts received and expended under the
Distribution Plan (including amounts expended by the Distributor to
Participating Organizations pursuant to the Servicing Agreements entered into
under the Distribution Plan) indicating the purposes for which such expenditures
were made.


   
PREDECESSOR FUNDS' DISTRIBUTION AND SHAREHOLDER SERVICING PLANS

         Prior to the merger with the Trust, the Predecessor Funds (other than
the predecessors to the Cash Management Funds) entered into servicing agreements
(the "SERVICE AGREEMENTS") with servicing agents (which could include the
Predecessor Fund's investment adviser and its affiliates) (collectively, the
"SERVICE AGENTS"). The Service Agreements provided that the Service Agents would
render shareholder administrative support services to their customers who were
the beneficial owners of the Predecessor Fund shares in consideration for such
Funds' payment of up to .25% (on an annualized basis) of the average daily net
asset value of the shares held by the Service Agents and, at the Predecessor
Fund's option, the Funds could reimburse the Service Agents' out-of-pocket
expenses (such fees and expenses being collectively referred to as the "SERVICE
PLAN"). The Predecessor Funds (other than the predecessors to the Cash
Management Funds) implemented the Service Plan with respect to Class A and Class
B Shares of the Predecessor Funds.

         In addition, the Board of Trustees of the Predecessor Funds adopted a
plan under Rule 12b-1 under the 1940 Act (the "PEGASUS 12B-1 PLAN"). Pursuant to
the Pegasus 12b-1 Plan, the Funds other than the Cash Management Funds could pay
BISYS as distributor a fee of up to 0.75% of the average daily net asset value
attributable to Class B Shares and the Cash Management Funds could pay BISYS as
distributor a fee of up to 0.25% of the average daily net asset value
attributable to Service Shares. These fees were paid for advertising, marketing
and distributing such shares and for the provision of certain services to the
holders of such shares. Under the Pegasus 12b-1 Plan, BISYS was authorized to
make payments to certain financial institutions, securities dealers and other
financial industry professionals in respect of these services.
    


                                      121
<PAGE>   635

   
      During the fiscal year ending December 31, 1998, the distribution fees
paid by the Predecessor Funds were as follows:

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
Fund                   Class A              Class B               Service
- ---------------------- -------------------- --------------------- ---------------------
<S>                    <C>                  <C>                   <C>    
Income Bond Fund                                                  NA
- ---------------------- -------------------- --------------------- ---------------------
Intermediate Bond Fund                                            NA
- ---------------------- -------------------- --------------------- ---------------------
Small Cap Value Fund                                              NA
- ---------------------- -------------------- --------------------- ---------------------
Diversified Mid Cap                                               NA
Fund
- ---------------------- -------------------- --------------------- ---------------------
Diversified                                                       NA
International
Fund
- ---------------------- -------------------- --------------------- ---------------------
Market Expansion Index                                            NA
Fund
- ---------------------- -------------------- --------------------- ---------------------
Bond Fund                                                         NA
- ---------------------- -------------------- --------------------- ---------------------
Short-Term                                                        NA
Municipal Bond Fund
- ---------------------- -------------------- --------------------- ---------------------
Tax-Free Bond                                                     NA
Fund
- ---------------------- -------------------- --------------------- ---------------------
Michigan                                                          NA
Municipal Money Market
Fund
- ---------------------- -------------------- --------------------- ---------------------
Cash Management        NA                   NA
Money Market Fund
- ---------------------- -------------------- --------------------- ---------------------
Treasury Cash          NA                   NA
Management Money
Market Fund
- ---------------------- -------------------- --------------------- ---------------------
Treasury Prime Cash    NA                   NA
Management
Money Market Fund
- ---------------------- -------------------- --------------------- ---------------------
U.S. Government        NA                   NA
Securities
Cash Management
Money Market Fund
- ---------------------- -------------------- --------------------- ---------------------
Municipal Cash         NA                   NA
Management
Money Market
Fund
- ---------------------------------------------------------------------------------------
</TABLE>
    




CUSTODIAN AND TRANSFER AGENT

   
Cash and securities owned by the Funds of the Trust are held by State Street
Bank and Trust Company ("STATE STREET") as Custodian. State Street serves the
respective Funds as Custodian pursuant to a Custodian Agreement with the Trust
(the "CUSTODIAN AGREEMENT"). Under the Custodian Agreement, State Street (i)
maintains a separate account or accounts in the name of each Fund; (ii) makes
receipts and disbursements of money on behalf of each Fund; (iii) collects and
receives all income and other payments and distributions on account of the
Funds' portfolio securities; (iv) responds to correspondence from security
brokers and others relating to its duties; and (v) makes periodic reports to the
Trust's Board of Trustees concerning the Trust's operations. State Street may,
at its own expense, open and maintain a sub-custody account or accounts on
    


                                      122
<PAGE>   636

behalf of the Trust, provided that State Street shall remain liable for the
performance of all of its duties under the Custodian Agreement.

Bank One Trust Company, N.A. serves as Sub-Custodian in connection with the
Trust's securities lending activities, pursuant to agreements between the Trust,
State Street and Bank One Trust Company. Bank One Trust Company receives a fee
paid by the Trust.

Rules adopted under the 1940 Act permit the Trust to maintain its securities and
cash in the custody of certain eligible banks and securities depositories. The
Trust intends to select foreign custodians or sub-custodians to maintain foreign
securities of the International Equity Index Fund pursuant to such rules,
following a consideration of a number of factors, including, but not limited to,
the reliability and financial stability of the institution; the ability of the
institution to perform custodial services for the Trust; the reputation of the
institution in its national market; the political and economic stability of the
country in which the institution is located; and the risks of potential
nationalization or expropriation of Trust assets. In addition, the 1940 Act
requires that foreign bank sub-custodians, among other things have Shareholder
equity in excess of $200 million, have no lien on the Trust's assets and
maintain adequate and accessible records.

   
State Street serves as Transfer Agent and Dividend Disbursing Agent for each
Fund pursuant to Transfer Agency Agreements with the Trust (the "TRANSFER AGENCY
AGREEMENT"). Under the Transfer Agency Agreements, State Street has agreed (i)
to issue and redeem Shares of the Trust; (ii) to address and mail all
communications by the Trust to its Shareholders, including reports to
Shareholders, dividend and distribution notices, and proxy material for its
meetings of Shareholders; (iii) to respond to correspondence or inquiries by
Shareholders and others relating to its duties; (iv) to maintain Shareholder
accounts and certain sub-accounts; and (v) to make periodic reports to the
Trust's Board of Trustees concerning the Trust's operations.

    




                                      123
<PAGE>   637

EXPERTS

   
For all Funds other than the Predecessor Funds, the financial statements for
the fiscal year ended June 30, 1998 have been audited by PricewaterhouseCoopers
LLP, independent public accountants to the Trust, as indicated in their reports
with respect thereto, and are incorporated herein by reference in reliance upon
the authority of said firm as experts in accounting and auditing in giving said
reports. The Financial Statements for the Predecessor Funds have been audited
by , independent public accountants to such Funds for the period ended December
31, 1998, as indicated in their reports with respect thereto, and are
incorporated herein by reference in reliance upon the authority of said firm as
experts in accounting and auditing in giving said reports.
    

The financial statements for the predecessor funds of the Large Company Growth
Fund, Sun Eagle Intermediate Fixed Income Fund and Sun Eagle Equity Growth Fund,
respectively, for the fiscal year ended June 30, 1993 and for the period from
February 28, 1992 (commencement of operations of each Fund) to June 30, 1992,
were audited by the predecessor auditors for such Funds.

The financial statements for the predecessor Fund of the Kentucky Municipal Bond
Fund, the Trademark Kentucky Municipal Bond Fund, for the period from February
1, 1994 to January 19, 1995, and for the period from March 12, 1993
(commencement of operations) to January 31, 1994, were audited by the
predecessor auditors for such Funds.

   
    

The law firm of Ropes & Gray, One Franklin Square, 1301 K Street, N.W., Suite
800 East, Washington, D.C. 20005 is counsel to the Trust. From time to time,
Ropes & Gray have rendered legal services to BANK ONE CORPORATION and its
subsidiary banks.




                                      124
<PAGE>   638

                             ADDITIONAL INFORMATION


DESCRIPTION OF SHARES

   
The Trust is a Massachusetts Business Trust. The Trust's Declaration of Trust
was filed with the Secretary of State of the Commonwealth of Massachusetts on
May 23, 1985 and authorizes the Board of Trustees to issue an unlimited number
of Shares, which are units of beneficial interest, without par value. The
Trust's Declaration of Trust authorizes the Board of Trustees to establish one
or more series of Shares of the Trust, and to classify or reclassify any series
into one or more classes by setting or changing in any one or more respects the
preferences, designations, conversion, or other rights, restrictions, or
limitations as to dividends, conditions of redemption, qualifications, or other
terms applicable to the Shares of such class, subject to those matters expressly
provided for in the Declaration of Trust, as amended, with respect to the Shares
of each series of the Trust. The Trust presently includes 54 series of Shares,
which represent interests in the following:

1.       The Prime Money Market Fund;
2.       The U.S. Treasury Securities Money Market Fund;
3.       The Municipal Money Market Fund;
4.       The Ohio Municipal Money Market Fund;
5.       The Equity Income Fund;
6.       The Mid Cap Value Fund;
7.       The Mid Cap Growth Fund;
8.       The Diversified Equity Fund;
9.       The Small Cap Growth Fund;
10.      The Large Cap Value Fund;
11.      The Large Cap Growth Fund;
12.      The International Equity Index Fund;
13.      The Equity Index Fund;
14.      The Balanced Fund;
15.      The Income Bond Fund;
16.      The Short-Term Bond Fund;
17.      The Intermediate Bond Fund;
18.      The Government Bond Fund;
19.      The Ultra Short-Term Bond Fund;
20.      The High Yield Bond Fund;
21.      The Investor Growth Fund;
22.      The Investor Growth & Income Fund;
23.      The Investor Aggressive Growth Fund;
24.      The Investor Fixed Income Fund;
25.      The Investor Conservative Growth Fund;
26.      The Investor Balanced Fund;
27.      The Municipal Income Fund;
28.      The Intermediate Tax-Free Bond Fund;
29.      The Ohio Municipal Bond Fund;
    


                                      125
<PAGE>   639

   
30.      The Texas Municipal Bond Fund;
31.      The West Virginia Municipal Bond Fund;
32.      The Kentucky Municipal Bond Fund;
33.      The Louisiana Municipal Bond Fund;
34.      The Arizona Municipal Bond Fund;
35.      The Treasury Money Market Fund;
36.      The Treasury Only Money Market Fund;
37.      The Government Money Market Fund;
38.      The Tax-Exempt Money Market Fund;
39.      The Institutional Prime Money Market Fund;
40.      The Treasury & Agency Fund;
41.      The Small Cap Value Fund;
42.      The Diversified Mid Cap Fund;
43.      The Diversified International Fund;
44.      The Market Expansion Index Fund;
45.      The Bond Fund;
46.      The Short-Term Municipal Bond Fund;
47.      The Tax-Free Bond Fund;
48.      The Michigan Municipal Bond Fund;
49.      The Michigan Municipal Money Market Fund;
50.      The Cash Management Money Market Fund;
51.      The Treasury Cash Management Money Market Fund;
52.      The Treasury Prime Cash Management Money Market Fund;
53.      The U.S. Government Securities Cash Management Money Market Fund; and
54.      The Municipal Cash Management Money Market Fund

The Funds of the Trust (other than the Institutional Money Market Funds and the
Money Market Funds) offer shares in four separate classes: Class I Shares, Class
A Shares, Class B and Class C Shares.1 The U.S. Treasury Securities Money Market
Fund and the Prime Money Market Fund offer Class I Shares, Class A Shares, Class
B Shares, Class C Shares, and Service Class Shares. The Institutional Money
Market Funds (other than the Cash Management Funds) offer only a single class of
shares. The Municipal Money Market Fund, the Ohio Municipal Money Market Fund,
and the Michigan Municipal Money Market Fund offer Class I, Class A, Class C,
and Service Class Shares. The Cash Management Funds offer Class A and Class I
Shares only. See the relevant Prospectus for those Funds for more details.

    
Shares have no subscription or preemptive rights and only such conversion or
exchange rights as the Board may grant in its discretion. When issued for
payment as described in the Prospectus and this Statement of Additional
Information, the Trust's Shares will be fully paid and non-assessable. In the
event of a liquidation or dissolution of the Trust, Shares of a Fund are
entitled to receive the assets available for distribution belonging to the Fund,
and a proportionate distribution, based upon the relative asset values of the
respective Funds, of any general assets not belonging to any particular Fund
which are available for distribution.

   
1. Class C Shares are currently not available for purchase in all Funds of the
   Trust.
    

                                      126
<PAGE>   640

Rule 18f-2 under the 1940 Act provides that any matter required to be submitted
to the holders of the outstanding voting securities of an investment company
such as the Trust shall not be deemed to have been effectively acted upon unless
approved by the holders of a majority of the outstanding Shares of each Fund
affected by the matter. For purposes of determining whether the approval of a
majority of the outstanding Shares of a Fund will be required in connection with
a matter, a Fund will be deemed to be affected by a matter unless it is clear
that the interests of each Fund in the matter are identical, or that the matter
does not affect any interest of the Fund. Under Rule 18f-2, the approval of an
investment advisory agreement or any change in investment policy would be
effectively acted upon with respect to a Fund only if approved by a majority of
the outstanding Shares of such Fund. However, Rule 18f-2 also provides that the
ratification of independent public accountants, the approval of principal
underwriting contracts, and the election of Trustees may be effectively acted
upon by Shareholders of the Trust voting without regard to series.

Class A Shares, Class B Shares, Class C Shares and Service Class Shares of a
Fund have exclusive voting rights with respect to matters pertaining to the
Fund's Distribution Plan.

SHAREHOLDER AND TRUSTEE LIABILITY

Under Massachusetts law, holders of units of beneficial interest in a business
trust may, under certain circumstances, be held personally liable as partners
for the obligations of the trust. However, the Trust's Declaration of Trust
provides that Shareholders shall not be subject to any personal liability for
the obligations of the Trust, and that every written agreement, obligation,
instrument, or undertaking made by the Trust shall contain a provision to the
effect that the Shareholders are not personally liable thereunder. The
Declaration of Trust provides for indemnification out of the trust property of
any Shareholder held personally liable solely by reason of his being or having
been a Shareholder. The Declaration of Trust also provides that the Trust shall,
upon request, assume the defense of any claim made against any Shareholder for
any act or obligation of the Trust, and shall satisfy any judgment thereon.
Thus, the risk of a Shareholder incurring financial loss on account of
Shareholder liability is limited to circumstances in which the Trust itself
would be unable to meet its obligations.

The Declaration of Trust states further that no Trustee, officer, or agent of
the Trust shall be personally liable in connection with the administration or
preservation of the assets of the trust or the conduct of the Trust's business;
nor shall any Trustee, officer, or agent be personally liable to any person for
any action or failure to act except for his own bad faith, willful misfeasance,
gross negligence, or reckless disregard of his duties. The Declaration of Trust
also provides that all persons having any claim against the Trustees or the
Trust shall look solely to the assets of the trust for payment.



                                      127
<PAGE>   641

PERFORMANCE

From time to time, the Funds may advertise yield, total return and/or
distribution rate. These figures will be based on historical earnings and are
not intended to indicate future performance. The yield of a Fund refers to the
annualized income generated by an investment in the Fund over a specified 30-day
period. The yield is calculated by assuming that the income generated by the
investment during that period is generated over a one-year period and is shown
as a percentage of the investment.

Total return is the change in value of an investment in a Fund over a given
period, assuming reinvestment of any dividends and capital gains. A cumulative
total return reflects an actual rate of return over a stated period of time. An
average annual total return is a hypothetical rate of return that, if achieved
annually, would have produced the same cumulative total return if performance
had been constant over the entire period. Average annual total returns smooth
out variations in performance; they are not the same as actual year-by-year
results.

The distribution rate is computed by dividing the total amount of the dividends
per share paid out during the past period by the maximum offering price or
month-end net asset value depending on the class of a Fund. This figure is then
"annualized" (multiplied by 365 days and divided by the applicable number of
days in the period).

Funds with a front-end sales charge would incorporate the offering price into
the distribution yield in place of month-end net asset value.

Distribution rate is a measure of the level of income paid out in cash to
Shareholders over a specified period. It differs from yield and total return and
is not intended to be a complete measure of performance. Furthermore, the
distribution rate may include return of principal and/or capital gains. Total
return is the change in value of a hypothetical investment over a given period
assuming reinvestment of dividends and capital gain distributions. The yield
refers to the cumulative 30-day rolling net investment income, divided by
maximum offering price and multiplied by average shares outstanding during this
period.

Further information about the performance of each class of the Funds is
contained in the Trust's Annual Report to Shareholders for The One Group, which
may be obtained without charge by calling 1-800-480-4111.

CALCULATION OF PERFORMANCE DATA

The yield for each Money Market Funds, and the Institutional Money Market Funds
was computed with respect to each class of Shares by determining the percentage
net change, excluding capital changes, in the value of an investment in one
Share of the particular class of the Fund over the base period, and multiplying
the net change by 365/7 (or approximately 52 weeks). The effective yield of each
class of each Fund represents a compounding of the yield by adding 1 to the
number representing the percentage change in value of the investment during the
base period, raising that sum to a power equal to 365/7, and subtracting 1 from
the result. No performance data is available with respect to 


                                      128
<PAGE>   642

the Tax-Exempt Money Market, Treasury Money Market, and Institutional Prime
Money Market Fund because those Funds had not commenced operations as of June
30, 1998.




                                      129
<PAGE>   643

<TABLE>
   
<CAPTION>
                                             MONEY MARKET FUNDS

CLASS I SHARES                                                                INCEPTION                  7-DAY YIELD
                                                                                DATE                       6/30/98

<S>                                                                             <C>                          <C>  
U.S. Treasury Securities Money Market                                           09/09/85                      5.12%
Prime Money Market                                                              08/01/85                      5.22%
Municipal Money Market                                                          06/04/87                      3.15%
Ohio Municipal Money Market(1)                                                  06/09/93                      3.21%

<CAPTION>
CLASS I SHARES                                                                INCEPTION                  7-DAY YIELD
                                                                                DATE                      12/31/98

<S>                                                                             <C>                          <C>  
Michigan Municipal Money Market
Cash Management Money Market                                                    07/30/92                          %
U.S Government Cash Management Money Market                                     06/02/92                          %
Treasury Cash Management Money Market                                           08/18/97                          %
Treasury Prime Cash Management Money Market                                     03/22/95                          %
Municipal Cash Management Money Market                                          09/12/97                          %

<CAPTION>
CLASS A SHARES                                                                INCEPTION                  7-DAY YIELD
                                                                                DATE                       6/30/98

<S>                                                                             <C>                          <C>  
U.S. Treasury Securities Money Market                                           02/18/92                      4.87%
Prime Money Market                                                              02/18/92                      4.97%
Municipal Market                                                                02/18/92                      2.90%
Ohio Municipal Money Market(1)                                                  01/26/93                      2.96%

<CAPTION>
CLASS A SHARES                                                                INCEPTION                  7-DAY YIELD
                                                                                DATE                      12/31/98

<S>                                                                             <C>                          <C>  
Michigan Municipal Money Market
Cash Management Money Market                                                    07/30/92                          %
U.S Government Cash Management Money Market                                     06/02/92                          %
Treasury Cash Management Money Market                                           08/18/97                          %
Treasury Prime Cash Management Money Market                                     03/22/95                          %
Municipal Cash Management Money Market                                          09/12/97                          %


<CAPTION>
INSTITUTIONAL SHARES                                                          INCEPTION                  7-DAY YIELD
                                                                                DATE                       6/30/98

<S>                                                                             <C>                          <C>  
Treasury Only Money Market                                                      04/16/93                      5.04%
Government Money Market                                                         06/14/93                      5.56%


<CAPTION>
CLASS B SHARES                                                                INCEPTION                  7-DAY YIELD
                                                                                DATE                       6/30/98

<S>                                                                             <C>                          <C>  
U.S. Treasury Securities Money Market                                           11/01/96                      4.12%
Prime Money Market                                                              11/01/96                      4.22%
</TABLE>
    




                                      130
<PAGE>   644

   
 1) A portion of the income may be subject to alternative minimum tax.

The tax equivalent yields for the classes of the Municipal Money Market, Ohio
Municipal Money Market, Michigan Municipal Money Market, and Tax-Exempt Money
Market Funds are computed by dividing that portion of the Fund's yield (with
respect to a particular class) which is tax-exempt by 1 minus a stated income
tax rate and adding the product to that portion, if any, of the yield of the
Fund (with respect to a particular class) that is not tax-exempt. The tax
equivalent yields for the classes of the Municipal Money Market Funds contained
in the following paragraph were computed based on an assumed effective federal
income tax rate of 39.6%. No such data was provided for the Tax-Exempt Money
Market Fund because it had not commenced operations as of June 30, 1998. The tax
equivalent effective yield for the classes of the Municipal Money Market Fund,
Ohio Municipal Money Market Fund, the Michigan Money Market Fund, and Tax-Exempt
Money Market Funds are computed by dividing that portion of the effective yield
of the Fund (with respect to a particular class) which is tax-exempt by 1 minus
a stated income tax rate and adding the product to that portion, if any, of the
effective yield of the Fund (with respect to a particular class) that is not
tax-exempt.
    




                                      131
<PAGE>   645

<TABLE>
   
<CAPTION>
                                            TAX-EQUIVALENT YIELD

CLASS I SHARES                                        7 DAY
                                                      YIELD                    28% TAX                   39.6% TAX
                                                      -----                    -------                   ---------

<S>                                                      <C>                       <C>                        <C>  
Municipal Money Market                                   3.15%                     4.38%                      5.22%
Ohio Municipal Money Market                              3.21%                     4.46%                      5.31%
Michigan Municipal Money Market

<CAPTION>
CLASS A SHARES                                        7 DAY
                                                      YIELD                    28% TAX                   39.6% TAX
                                                      -----                    -------                   ---------

<S>                                                      <C>                       <C>                        <C>  
Municipal Money Market                                   2.49%                     4.03%                      4.80%
Ohio Municipal Money Market                              2.96%                     4.11%                      4.90%
Michigan Municipal Money Market
</TABLE>
    


   
The performance of the Funds may be compared in publications to the performance
of various indices and investments (such as other mutual funds) for which
reliable performance data is available, as well as averages, performance
rankings or other information prepared by recognized mutual fund statistical
services, as set forth below.
    

Performance information showing a Fund's total return and/or 30-day yield with
respect to a particular class may be presented from time to time in advertising
and sales literature regarding the Equity Funds, the Bond Funds, the Funds of
Funds, and the Municipal Bond Funds. A 30-day yield is calculated by dividing
the net investment income per-share earned during the 30-day base period by the
maximum offering price per share on the last day of the period, according to the
following formula:

a-b
30-Day Yield  =  2[(cd +1)6-1]

In the above formula, "a" represents dividends and interest earned by a
particular class during the 30-day base period; "b" represents expenses accrued
to a particular class for the 30-day base period (net of reimbursements); "c"
represents the average daily number of Shares of a particular class outstanding
during the 30-day base period that were entitled to receive dividends; and "d"
represents the maximum offering price per share of a particular class on the
last day of the 30-day base period.

From time to time the tax equivalent 30-day yield of a particular class of a
Municipal Bond Fund may be presented in advertising and sales literature. The
tax equivalent 30-day yield will be computed by dividing that portion of a
Fund's yield (respecting a particular class) which is tax-exempt by 1 minus a
stated income tax rate and adding the product to that portion, if any, of the
yield of the Fund (respecting a particular class) that is not tax-exempt. The
tax equivalent 30-day yields for a Municipal Bond Fund (respecting a particular
class) will, unless otherwise noted, be computed based on an assumed effective
federal income tax rate of 31%. No tax equivalent 30-day yield information is
available for the Texas Municipal Bond Fund.



                                      132
<PAGE>   646

         A Fund's respective cumulative total return and average annual total
return was determined by calculating the change in the value of a hypothetical
$1,000 investment in a particular class of the Fund for each of the periods
shown. Cumulative total return for a particular class of a Fund is computed by
determining the rate of return over the applicable period that would equate the
initial amount invested to the ending redeemable value of the investment. The
cumulative return is calculated as the total dollar increase or decrease in the
value of an account assuming reinvestment of all distributions divided by the
original initial investment. The average annual return for a particular class of
a Fund is computed by determining the average annual compounded rate of return
over the applicable period that would equate the initial amount invested to the
ending redeemable value of the investment. The ending redeemable value includes
dividends and capital gain distributions reinvested at net asset value. The
resulting percentages indicated the positive or negative investment results that
an investor would have experienced from changes in share price and reinvestment
of dividends and capital gains distributions.




                                      133
<PAGE>   647

                                 CLASS I SHARES

<TABLE>
   
<CAPTION>
FIXED INCOME FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----

<S>                                        <C>           <C>          <C>         <C>        <C>         <C>         <C>  
Short-Term Bond                            09/04/90       6.59%       6.16%       5.41%          -       7.03%       5.75%
Intermediate Tax-Free(2)                   09/04/90       7.74%       6.96%       5.46%          -       6.95%       4.15%
Ohio Municipal Bond(2)                     07/02/91       7.13%       6.68%       5.20%          -       6.84%       4.19%
Municipal Income(2)                        02/09/93       8.09%       7.03%       5.76%          -       5.92%       4.76%
Government Bond                            02/08/93      10.81%       7.54%       6.27%          -       6.48%       5.88%
Ultra Short-Term Bond                      02/02/93       6.00%       6.25%       5.20%          -       5.18%       5.85%
Kentucky Municipal Bond(2)                 03/12/93       7.11%       6.73%       5.40%          -       5.52%       3.91%
Louisiana Municipal Bond(2)                12/29/89       6.62%       6.27%       5.26%          -       6.81%       3.90%
West Virginia Municipal
Bond(1),(2)                                01/21/97       7.36%       6.43%       5.62%      6.69%       7.39%       4.13%
Arizona Municipal Bond(2)                  01/21/97       6.58%       5.95%       5.28%      7.01%       7.34%       3.82%
Treasury & Agency(1)                       01/21/97       7.91%       6.28%       6.30%      7.42%       7.39%       5.37%


<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----

<S>                                        <C>            <C>         <C>         <C>        <C>         <C>         <C>  
Income Bond
Intermediate Bond
Bond
Short-Term Bond
Tax-Free Bond
Michigan Municipal Bond

<CAPTION>
EQUITY FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----

<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Mid Cap Value                              03/02/89      28.27%      22.92%      17.52%          -      14.11%       0.77%
Equity Income                              07/02/87      23.18%      26.16%      20.21%     16.29%      13.99%       1.27%
Equity Index                               07/02/91      29.73%      29.79%      22.58%          -      19.64%       1.17%
Large Cap Value                            03/01/91      21.46%      20.28%      16.88%          -      14.68%       1.08%
Mid Cap Growth                             03/02/89      31.11%      26.11%      19.12%          -      18.35%      -0.38%
International Equity Index(3)              10/28/92       9.54%      11.78%      10.93%          -      12.84%          NA
</TABLE>
    


                                      134
<PAGE>   648

<TABLE>
   
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Balanced                                   04/05/93      22.12%      18.97%      14.11%          -      13.71%       2.70%
Large Cap Growth                           02/28/92      35.75%      28.48%      22.79%          -      19.88%       0.09%
Small Cap Growth                           07/01/91      23.58%      19.36%      14.55%          -      17.10%       0.10%
Diversified Equity                         12/29/89      32.26%      28.33%      19.63%          -      17.91%       0.48%

<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------

                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----


<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Small Cap Value
Diversified Mid Cap
Diversified International
Market Expansion Index

<CAPTION>
FUNDS OF FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----


<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Investor Conservative Growth               12/10/96      12.73%           -           -          -      12.15%          NA
Investor Balanced                          12/10/96      17.02%           -           -          -      16.60%          NA
Investor Growth & Income                   12/10/96      20.34%           -           -          -      20.40%          NA
Investor Growth                            12/10/96      23.81%           -           -          -      24.49%          NA
</TABLE>
    






                                      135
<PAGE>   649

                                s CLASS A SHARES

   
<TABLE>
<CAPTION>
FIXED INCOME FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Short-Term Bond                            02/18/92       6.32%       5.88%       5.13%          -       5.86%       5.49%
With Sales Charge                                         3.16%       4.80%       4.49%          -       5.35%
Intermediate Tax-Free(2)                   02/18/92       7.50%       6.71%       5.22%          -       6.08%       3.73%
With Sales Charge                                         2.70%       5.09%       4.26%          -       5.32%
Ohio Municipal Bond(2)                     02/18/92       6.87%       6.42%       4.97%          -       6.30%       3.94%
With Sales Charge                                         2.10%       4.80%       4.01%          -       5.53%
Municipal Income(2)                        02/23/93       7.84%       6.80%       5.57%          -       5.67%       4.51%
With Sales Charge                                         2.94%       5.17%       4.59%          -       4.77%
Government Bond                            03/05/93      10.54%       7.28%       5.98%          -       5.95%       5.63%
With Sales Charge                                         5.53%       5.65%       5.01%          -       5.03%
Ultra Short-Term Bond                      03/10/93       5.75%       6.05%       4.98%          -       4.97%       5.56%
With Sales Charge                                         2.52%       5.00%       4.34%          -       4.37%
Kentucky Municipal Bond(2)                 01/20/95       6.86%       6.34%       5.17%          -       5.30%       3.49%
With Sales Charge                                         2.06%       4.72%       4.20%          -       4.39%
Louisiana Municipal Bond(2)                12/29/89       6.35%       6.07%       5.14%          -       6.74%       3.65%
With Sales Charge                                         1.53%       4.47%       4.18%          -       6.17%
West Virginia Municipal Bond(1,2)          01/21/97       6.98%       6.27%       5.42%      6.45%       7.15%       3.88%
With Sales Charge                                         2.16%       4.66%       4.45%      5.96%       6.82%
Arizona Municipal Bond(1,2)                01/21/97       6.30%       5.23%       4.72%      6.60%       6.99%       3.41%
With Sales Charge                                         1.52%       3.61%       3.76%      6.10%       6.73%
Treasury & Agency(1)                       01/21/97       8.10%       6.22%       6.16%      7.21%       7.18%       4.96%
With Sales Charge                                         4.85%       5.14%       5.53%      6.89%       6.86%

<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Bond
With Sales Charge
Income Bond
With Sales Charge
Intermediate Bond
With Sales Charge
Short-Term Municipal Bond
With Sales Charge
Tax-Free Bond
With Sales Charge
</TABLE>
    


                                      136
<PAGE>   650

<TABLE>
   
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Michigan Municipal Bond
With Sales Charge
</TABLE>
    



                                      137
<PAGE>   651

<TABLE>
   
<CAPTION>
EQUITY FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Mid Cap Value                              02/18/92      27.90%      22.58%      17.27%          -      15.79%        .53%
With Sales Charge                                        22.13%      20.72%      16.19%          -      14.96%
Equity Income                              02/18/92      22.91%      25.82%      19.89%          -      17.43%        .99%
With Sales Charge                                        17.39%      23.91%      18.79%          -      16.59%
Equity Index                               02/18/92      29.33%      29.42%      22.29%          -      19.44%        .93%
With Sales Charge                                        23.49%      27.45%      21.17%          -      18.58%
Large Cap Value                            02/18/92      21.14%      20.00%      16.66%          -      14.00%        .82%
With Sales Charge                                        15.69%      18.16%      15.59%          -      13.17%
Mid Cap Growth                             02/18/92      30.95%      25.88%      18.85%          -      15.87%          NA
With Sales Charge                                        25.07%      23.95%      17.76%          -      15.03%
International Equity Index(3)              04/23/93       9.34%      11.60%      10.70%          -      10.21%          NA
With Sales Charge                                         4.40%       9.89%       9.68%          -       9.23%
Balanced                                   04/02/93      21.71%      18.64%      13.82%          -      13.40%       2.47%
With Sales Charge                                        16.25%      16.82%      12.78%          -      12.41%
Large Cap Growth                           02/22/94      35.43%      28.01%           -          -      23.70%          NA
With Sales Charge                                        29.33%      26.07%           -          -      22.39%
Small Cap Growth                           07/01/91      23.28%      19.14%      14.42%          -      17.01%          NA
With Sales Charge                                        17.69%      17.32%      13.37%          -      16.25%
Diversified Equity                         12/29/89      31.96%      31.96%      19.48%          -      17.82%       0.24%
With Sales Charge                                        26.04%      26.11%      18.38%          -      17.19%

<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Small Cap Value
Diversified Mid Cap
Diversified International
Market Expansion Index


<CAPTION>
FUNDS OF FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Investor Conservative Growth               12/10/96      12.38%           -           -          -      11.56%          NA
With Sales Charge                                         7.29%           -           -          -       8.31%          NA
Investor Balanced                          12/10/96      16.62%           -           -          -      16.29%          NA
With Sales Charge                                        11.39%           -           -          -      12.90%          NA
</TABLE>
    


                                      138
<PAGE>   652

   
<TABLE>
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Investor Growth & Income                   12/10/96      20.18%           -           -          -      20.73%          NA
With Sales Charge                                        14.76%           -           -          -      17.21%          NA
Investor Growth                            12/10/96      23.44%           -           -          -      23.78%          NA
With Sales Charge                                        17.87%           -           -          -      20.17%          NA
</TABLE>
    

                                      139
<PAGE>   653


<TABLE>
   
<CAPTION>
CLASS B SHARES


FIXED INCOME FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Short-Term Bond                            01/14/94       5.98%       5.33%           -          -       4.75%       4.99%
With Sales Charge                                         2.98%       5.03%           -          -       4.75%
Intermediate Tax-Free(2)                   01/14/94       6.81%       6.03%           -          -       4.28%       3.25%
With Sales Charge                                         2.81%       5.13%           -          -       3.89%
Ohio Municipal Bond(2)                     01/14/94       6.20%       5.75%           -          -       4.05%       3.29%
With Sales Charge                                         2.20%       4.85%           -          -       3.66%
Municipal Income(2)                        01/14/94       7.04%       6.08%           -          -       4.85%       3.86%
With Sales Charge                                         3.04%       5.18%           -          -       4.47%
Government Bond                            01/14/94       9.86%       6.61%           -          -       5.70%       4.98%
With Sales Charge                                         5.86%       5.72%           -          -       5.33%
Ultra Short-Term Bond                      01/14/94       5.32%       5.39%           -          -       4.66%       5.09%
With Sales Charge                                         2.32%       5.09%           -          -       4.66%
Intermediate Bond                          11/30/94       7.78%       6.23%           -          -       7.59%       5.00%
With Sales Charge                                         3.78%       5.33%           -          -       6.90%
Kentucky Municipal Bond(2)                 03/16/95       6.20%       5.72%           -          -       6.04%       3.01%
With Sales Charge                                         2.20%       4.82%           -          -       5.23%
Louisiana Municipal Bond(2)                09/16/94       5.69%       5.39%           -          -       5.57%       3.00%
With Sales Charge                                         1.69%       4.48%           -          -       4.88%
West Virginia Municipal Bond(1,2)          01/21/97       6.57%       5.63%       4.76%       5.79        6.47        3.23
With Sales Charge                                         2.57%       4.73%       4.59%       5.79        6.47
Arizona Municipal Bond(1,2)                01/21/97       2.67%       3.48%       3.41%       5.60        6.13        2.93
With Sales Charge                                       (1.33)%       2.53%       3.24%       5.60        6.13
Treasury & Agency(1)                       01/21/97       7.33%       5.60%       5.59%       6.66        6.63        4.62
With Sales Charge                                         4.33%       5.30%       5.59%       6.66        6.63


<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Bond
With Sales Charge
Income Bond
With Sales Charge
Intermediate Bond
With Sales Charge
</TABLE>
    


                                      140
<PAGE>   654

<TABLE>
   
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Short-Term Municipal Bond
With Sales Charge
Tax-Free Bond
With Sales Charge
Michigan Municipal Bond
With Sales Charge
</TABLE>
    

                                      141
<PAGE>   655


<TABLE>
   
<CAPTION>
EQUITY FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------

                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Mid Cap Value                              01/14/94      26.97%      21.67%           -          -      16.38%         NA
With Sales Charge                                        22.97%      20.99%           -          -      16.12%
Equity Income                              01/14/94      21.97%      24.92%           -          -      20.06%        .30%
With Sales Charge                                        17.97%      24.28%           -          -      19.82%
Equity Index                               01/14/94      28.47%      28.43%           -          -      22.74%        .21%
With Sales Charge                                        24.47%      27.82%           -          -      22.51%
Large Cap Value                            01/14/94      20.18%      19.19%           -          -      16.80%        .10%
With Sales Charge                                        16.18%      18.48%           -          -      16.54%
Mid Cap Growth                             01/14/94      29.79%      24.89%           -          -      18.09%          NA
With Sales Charge                                        25.79%      24.25%           -          -      17.84%
International Equity Index(3)              01/14/94       8.48%      10.59%           -          -       8.53%          NA
With Sales Charge                                         4.48%       9.76%           -          -       8.19%
Balanced                                   01/14/94      20.95%      17.84%           -          -      13.63%       1.73%
With Sales Charge                                        16.95%      17.12%           -          -      13.34%
Large Cap Growth                           01/14/94      34.39%      27.25%           -          -      22.49%          NA
With Sales Charge                                        30.39%      26.63%           -          -      22.26%
Small Cap Growth                           09/09/94      22.24%      18.23%           -          -      15.88%          NA
With Sales Charge                                        18.24%      17.51%           -          -      15.35%
Diversified Equity                         09/09/94      30.89%      27.05%           -          -      23.28%          NA
With Sales Charge                                        26.89%      26.43%           -          -      22.84%


<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Small Cap Value
With Sales Charge
Diversified Mid Cap
With Sales Charge
Diversified International
With Sales Charge
Market Expansion Index
With Sales Charge
</TABLE>




FUNDS OF FUNDS
    

                                      142
<PAGE>   656

<TABLE>
   
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Investor Conservative Growth               12/10/96      11.53%                                         10.90%
With Sales Charge                                         7.53%          NA          NA         NA       8.46%          NA
Investor Balanced                          12/10/96      15.85%                                         15.67%
With Sales Charge                                        11.85%          NA          NA         NA      13.28%          NA
Investor Growth & Income                   12/10/96      19.13%                                         19.72%
With Sales Charge                                        15.13%          NA          NA         NA      17.38%          NA
Investor Growth                            12/10/96      22.52%          NA          NA         NA      23.91%          NA
With Sales Charge                                        18.52%                                         21.61%
</TABLE>
    

                                      143
<PAGE>   657

<TABLE>
   
<CAPTION>
CLASS C SHARES


FIXED INCOME FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Municipal Income(2))                       11/04/97           -           -           -          -       8.28%       3.86%
With Sales Charge                                                                                        7.28%


<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Bond
With Sales Charge
Intermediate Bond
With Sales Charge
Short-Term Municipal Bond
With Sales Charge
Tax-Free Bond
With Sales Charge
Michigan Municipal Bond
With Sales Charge
</TABLE>
    




                                      144
<PAGE>   658

<TABLE>
   
<CAPTION>
EQUITY FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Equity Income                              11/04/97           -           -           -          -      16.57%       0.31%
With Sales Charge                                                                                       15.57%
Equity Index                               11/04/97           -           -           -          -      21.07%       0.20%
With Sales Charge                                                                                       20.07%
Mid Cap Growth                             11/04/97           -           -           -          -      14.27%          NA
With Sales Charge                                                                                       13.27%
International Equity Index(3)              11/04/97           -           -           -          -      16.34%          NA
With Sales Charge                                                                                       15.34%
Large Cap Growth                           11/04/97           -           -           -          -      27.63%          NA
With Sales Charge                                                                                       26.63%
Small Cap Growth                           11/04/97           -           -           -          -       3.08%          NA
With Sales Charge                                                                                        2.16%
Diversified Equity                         11/04/97           -           -           -          -      20.87%          NA
With Sales Charge                                                                                       19.87%


<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/98
- ------------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Small Cap Value
With Sales Charge
Diversified Mid Cap
With Sales Charge
Diversified International
With Sales Charge
Market Expansion Index
With Sales Charge




<CAPTION>
FUNDS OF FUNDS

AVERAGE ANNUAL TOTAL RETURN AS OF 6/30/98
- -----------------------------------------


                                                                                                                 30-DAY
                                         INCEPTION                                                    LIFE OF      SEC
                                           DATE        1 YEAR      3 YEAR     5 YEAR      10 YEAR      FUND       YIELD
                                           ----        ------      ------     ------      -------      ----       -----
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Investor Conservative Growth               07/01/97          NA          NA          NA         NA       11.48          NA
With Sales Charge                                                                                        10.48
</TABLE>
    


                                      145
<PAGE>   659

<TABLE>
<S>                                        <C>           <C>         <C>         <C>        <C>         <C>         <C>  
Investor Balanced                          07/01/97          NA          NA          NA         NA       15.66          NA
With Sales Charge                                                                                        14.66
Investor Growth & Income                   07/01/97          NA          NA          NA         NA       19.08          NA
With Sales Charge                                                                                        18.08
Investor Growth                            07/01/97          NA          NA          NA         NA       22.42          NA
With Sales Charge                                                                                        21.42
</TABLE>




                                      146
<PAGE>   660

   
(1)  The quoted performance of these funds ("MUTUAL FUNDS") advised by Banc One
     Investment Advisors Corporation includes performance of certain collective
     trust fund ("COMMINGLED") accounts for periods dating back to 12/31/83 for
     the West Virginia Municipal Bond Fund, 11/30/79 the Arizona Municipal Bond
     Fund and 4/30/88 for the Treasury & Agency Fund. Prior to the Mutual Funds
     commencement of for operations on 1/21/97, the Commingled accounts were
     adjusted to reflect the expenses associated with the Mutual Funds. The
     Commingled accounts were not registered with the Securities and Exchange
     Commission and, therefore, were not subject to the investment restrictions
     imposed by law on registered mutual funds. If the Commingled accounts had
     been registered, the Commingled accounts' performance may have been
     adversely affected.

(2)  A portion of the income may be subject to the federal alternative minimum
     tax.
    

(3)  Foreign investing involves a greater degree of risk and volatility.


     Performance information showing a Fund's and/or particular Class's
     distribution rate may be presented from time to time in advertising and
     sales literature regarding the Bond Funds and Equity Funds. The
     distribution rate is calculated as follows:

   
     distribution yield         =        a/(b) x 365
                                         -----------
                                              c
    

     In the formula, "a" represents dividends distributed by a particular class
     during that period; "b" represents month end offer price or net asset value
     for a particular class; "c" represents the number of days in the period
     being calculated. "365" is the number of days in a year, used to annualize
     the distribution yield.

     Performance will fluctuate from time to time and is not necessarily
     representative of future results. Accordingly, a Fund's performance may not
     provide for comparison with bank deposits or other investments that pay a
     fixed return for a stated period of time. Performance is a function of a
     Fund's quality, composition, and maturity, as well as expenses allocated to
     the Fund. Fees imposed upon customer accounts at a bank, with regard to
     Class I Shares and Service Class Shares, or a Participating Organization,
     with regard to Class A and Class B Shares, will reduce a Fund's effective
     yield to customers. Performance data for the Funds through June 30, 1998
     (calculated as described above) is as follows:

     The above quoted performance for the Arizona Municipal Bond Fund, the West
     Virginia Municipal Bond Fund, and the Treasury & Agency Fund, respectively,
     includes the performance for the Arizona Municipal Bond Investment Fund,
     the West Virginia Municipal Bond Investment Fund and the Treasury Only
     Government Based Investment Trust, common trust funds managed by Banc One
     Advisors (collectively the "CIFs"). The quoted performance of these Funds
     include performance of the corresponding CIFs for periods dating back to
     December 31, 1983 for the West Virginia Municipal Bond Fund, November 30,
     1979 for the Arizona Municipal Bond Fund and April 30, 1988 for the
     Treasury & Agency Fund. Because the management of the Funds is
     substantially the same as the CIFs, the quoted performance of the Funds
     will include the performance of the CIFs for the periods prior to January
     20, 1997, the effectiveness of the Trust's registration statement as it
     relates to the Funds. The quoted performance will be adjusted 


                                      147
<PAGE>   661

   
     to reflect the deduction of estimated current fees of the Funds on a class
     by class basis absent any waivers. The CIFs were not registered under the
     Investment Company Act of 1940, as amended (the "1940 Act"), and therefore
     were not subject to certain investment restrictions, limitations, and
     diversification requirements that are imposed by the 1940 Act and the Code.
     If the CIFs had been so registered, their performance might have been
     adversely affected.
    

     In addition, the performance of each class of a Fund may from time to time
     be compared to that of other mutual funds tracked by mutual fund rating
     services, to that of broad groups of comparable mutual funds or to that of
     unmanaged indices that may assume investment of dividends but do not
     reflect deductions for administrative and management costs. Further, the
     performance of each class of a Fund may be compared to other funds or to
     relevant indices that may calculate total return without reflecting sales
     charges; in which case, a Fund may advertise its total return in the same
     manner. If reflected, sales charges would reduce these total return
     calculations.

     The Money Market and Institutional Money Market Funds may quote actual
     total return performance in advertising and other types of literature
     compared to indices or averages of alternative financial products available
     to prospective investors. The performance comparisons may include the
     average return of various bank instruments, some of which may carry certain
     return guarantees offered by leading banks and thrifts, as monitored by the
     BANK RATE MONITOR, and those of corporate and government security price
     indices of various durations prepared by Shearson Lehman Brothers, Solomon
     Brothers, Inc. and the IBC/Donoghue organization. These indices are not
     managed for any investment goals.

     The Money Market and Institutional Money Market Funds may also use
     comparative performance information computed by and available from certain
     industry and general market research and publications, such as Lipper
     Analytical Services, Inc.

     Statistical and performance information compiled and maintained by CDA
     Technologies, Inc. and Interactive Data Corporation may also be used. CDA
     is a performance evaluation service that maintains a statistical data base
     of performance, as reported by a diverse universe of independently-managed
     mutual funds. Interactive Data Corporation is a statistical access service
     that maintains a data base of various industry indicators, such as
     historical and current price/earning information and individual stock and
     fixed income price and return information.

     Current interest rate and yield information on government debt obligations
     of various durations, as reported weekly by the Federal Reserve (Bulletin
     H. 15), may also be used. Also current rate information on municipal debt
     obligations of various durations, as reported daily by the Bond Buyer, may
     also be used. The BOND BUYER is published daily and is an industry-accepted
     source for current municipal bond market information.

     Comparative information on the Consumer Price Index may also be included.
     This Index, as prepared by the U.S. Bureau of Labor Statistics, is the most
     commonly used measure


                                      148
<PAGE>   662

     of inflation. It indicates the cost fluctuations of a representative group
     of consumer goods. It does not represent a return on investment.

   
     THE EQUITY, BOND AND MUNICIPAL BOND FUNDS AND THE FUNDS OF FUNDS may quote
     actual total return performance from time to time in advertising and other
     types of literature compared to results reported by the Dow Jones
     Industrial Average.
    

     The Dow Jones Industrial Average is an industry-accepted unmanaged index of
     generally conservative securities used for measuring general market
     performance. The performance reported will reflect the reinvestment of all
     distributions on a quarterly basis and market price fluctuations. The index
     does not take into account any brokerage commissions or other fees.
     Comparative information on the Consumer Price Index may also be included.

     The Equity Funds, the Bond Funds, the Municipal Bond Funds and the Funds of
     Funds may also promote the yield and/or total return performance and use
     comparative performance information computed by and available from certain
     industry and general market research and publications, such as Lipper
     Analytical Services, Inc.; they may also use indices such as the Standard &
     Poor's 400 Composite Stock Index, the Standard & Poor's 500 Composite Stock
     Index, the Standard & Poor's 600 Composite Stock Index, the Russell 2000,
     or the Morgan Stanley International European, Asian and Far East Gross
     Domestic Product Index for performance comparison. Statistical and
     performance information compiled and maintained by CDA Technologies, Inc.
     and Interactive Data Corporation may also be used.

   
     THE BOND FUNDS, THE FUNDS OF FUNDS AND THE BALANCED FUND may quote actual
     yield and/or total return performance in advertising and other types of
     literature compared to indices or averages of alternative financial
     products available to prospective investors. The performance comparisons
     may include the average return of various bank instruments, some of which
     may carry certain return guarantees offered by leading banks and thrifts as
     monitored by Bank Rate Monitor, and those of corporate bond and government
     security price indices of various durations. Comparative information on the
     Consumer Price Index may also be included.

     The Bond Funds, the Funds of Funds and the Balanced Fund may also use
     comparative performance information computed by and available from certain
     industry and general market research and publications, as well as
     statistical and performance information, compiled and maintained by CDA
     Technologies, Inc. and Interactive Data Corporation.

     The Bond Funds, the Funds of Funds and the Balanced Fund may also use
     current interest rate and yield information on government debt obligations
     of various durations, as reported weekly by the Federal Reserve (Bulletin
     H. 15). In addition, current rate information on municipal debt obligations
     of various durations, as reported daily by the Bond Buyer, may also be
     used.
    


     MISCELLANEOUS

                                      149
<PAGE>   663


The Trust is not required to hold a meeting of Shareholders for the purpose of
electing Trustees except that (i) the Trust is required to hold a Shareholders'
meeting for the election of Trustees at such time as less than a majority of the
Trustees holding office have been elected by Shareholders and (ii) if, as a
result of a vacancy on the Board of Trustees, less than two-thirds of the
Trustees holding office have been elected by the Shareholders, that vacancy may
only be filled by a vote of the Shareholders. In addition, Trustees may be
removed from office by a written consent signed by the holders of Shares
representing two-thirds of the outstanding Shares of the Trust at a meeting duly
called for the purpose, which meeting shall be held upon the written request of
the holders of Shares representing not less than 20% of the outstanding Shares
of the Trust. Except as set forth above, the Trustees may continue to hold
office and may appoint successor Trustees.

As used in the Trust's Prospectuses and in this Statement of Additional
Information, "assets belonging to a Fund" means the consideration received by
the Trust upon the issuance or sale of Shares in that Fund, together with all
income, earnings, profits, and proceeds derived from the investment thereof,
including any proceeds from the sale, exchange, or liquidation of such
investments, and any funds or payments derived from any reinvestment of such
proceeds, and any general assets of the Trust not readily identified as
belonging to a particular Fund that are allocated to that Fund by the Trust's
Board of Trustees. The Board of Trustees may allocate such general assets in any
manner it deems fair and equitable. It is anticipated that the factor that will
be used by the Board of Trustees in making allocations of general assets to
particular Funds will be the relative net asset values of the respective Funds
at the time of allocation. Assets belonging to a particular Fund are charged
with the direct liabilities and expenses in respect of that Fund, and with a
share of the general liabilities and expenses of the Trust not readily
identified as belonging to a particular Fund that are allocated to that Fund in
proportion to the relative net asset values of the respective Funds at the time
of allocation. The timing of allocations of general assets and general
liabilities and expenses of the Trust to particular Funds will be determined by
the Board of Trustees of the Trust and will be in accordance with generally
accepted accounting principles. Determinations by the Board of Trustees of the
Trust as to the timing of the allocation of general liabilities and expenses and
as to the timing and allocable portion of any general assets with respect to a
particular Fund are conclusive. For information regarding the allocations of
Class Expenses to particular classes of a Fund, see the respective Prospectus of
the Fund under "MANAGEMENT-Expenses."

As used in the Trust's Prospectuses and in this Statement of Additional
Information, a "vote of a majority of the outstanding Shares" of the Trust, a
particular Fund, or a particular class of Shares of a Fund, means the
affirmative vote of the lesser of (a) more than 50% of the outstanding Shares of
the Trust, such Fund, or such class of Shares of such Fund, or (b) 67% or more
of the Shares of the Trust, such Fund, or such class of Shares of such Fund
present at a meeting at which the holders of more than 50% of the outstanding
Shares of the Trust, such Fund, or such class of Shares of such Fund are
represented in person or by proxy.



                                      150
<PAGE>   664

The Trust is registered with the Securities and Exchange Commission as a
management investment company. Such registration does not involve supervision by
the Commission of the management or policies of the Trust.

The Prospectus and this Statement of Additional Information omit certain of the
information contained in the Registration Statement filed with the Securities
and Exchange Commission. Copies of such information may be obtained from the
Commission upon payment of the prescribed fee.

The Prospectus and this Statement of Additional Information are not an offering
of the securities herein described in any State in which such offering may not
lawfully be made. No salesman, dealer, or other person is authorized to give any
information or make any representation other than those contained in the
Prospectus and Statement of Additional Information.

   
As of December 1, 1998, BANK ONE CORPORATION, One First National Plaza, Chicago,
Illinois 60670(a Delaware Corporation) through Bank Subsidiaries, acting on
behalf of their underlying accounts, held of record substantially all of the
Class I Shares of the Trust, and possessed voting or investment power as
follows:
    

                                      151
<PAGE>   665


<TABLE>
   
<CAPTION>
FUND                                                             PERCENT OF
                                                                 BENEFICIAL
                                                                 FUND OWNERSHIP

<S>                                                              <C>
Large Cap Growth Fund                                               85.41%
Mid Cap Value Fund                                                  83.68%
Mid Cap Growth Fund                                                 73.87%
Income Bond Fund                                                    86.00%
Intermediate Tax-Free Bond Fund                                     97.95%
Prime Money Market Fund                                             44.10%
U.S. Treasury Securities Money Market Fund                          19.65%
Municipal Money Market Fund                                         74.39%
Equity Income Fund                                                  87.28%
Equity Index Fund                                                   72.86%
Large Cap Value Fund                                                84.42%
Ohio Municipal Bond Fund                                            93.95%
Short-Term Bond Fund                                                86.92%
International Equity Index Fund                                     86.97%
Balanced Fund                                                       79.89%
Ohio Municipal Money Market Fund                                    66.75%
Municipal Income                                                    97.34%
Kentucky Municipal Bond Fund                                        92.67%
Government Bond Fund                                                87.45%
Ultra Short-Term Bond Fund                                          72.44%
Louisiana Municipal Bond Fund                                       89.25%
Diversified Equity Fund                                             79.44%
Small Cap Growth Fund                                               77.90%
Intermediate Bond Fund                                              88.34%
Arizona Municipal Bond Fund                                         94.78%
West Virginia Municipal Bond Fund                                   98.54%
Investor Growth Fund                                                44.00%
Investor Growth & Income Fund                                       60.90%
Investor Balanced Fund                                              94.01%
Investor Conservative Growth Fund                                   65.32%
Treasury Only Money Market Fund                                     30.79%
Government Money Market Fund                                        13.43%
Treasury & Agency Fund                                              97.79%
High Yield Bond Fund                                                 1.14%
</TABLE>

As a result, BANK ONE CORPORATION may be deemed to be a "controlling person" of
Class I Shares of each of the aforementioned Funds (other than the Government
Money Market Fund, the U.S. Treasury Securities Money Market Fund, and the High
Yield Bond Fund) under the Investment Company Act of 1940.

In addition, as of December 1, 1998, the following persons were the beneficial
owners of more than 25% of the outstanding Shares of the following class of
Shares of the following Funds:

<TABLE>
<CAPTION>
                                25% SHAREHOLDERS
                                ----------------

NAME                                              PERCENTAGE OF        TYPE OF
AND ADDRESS            FUND/CLASS                  OWNERSHIP           OWNERSHIP
<S>                    <C>                         <C>                 <C>   
</TABLE>
    


                                      152
<PAGE>   666

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Northern Trust Bank of AZ Ttee                     Arizona Municipal Bond      26.21%              Record
FOR THOMAS A BRAND & REV TRUST                     Fund
PO Box 92956                                       Class A
Chicago, IL 60675-2956

Dean Witter For The Benefit Of                     Arizona Municipal Bond      32.02%              Record
Charles Stoddard &                                 Fund
P.O. Box 250 -Church Street Station                Class B
New York, NY 10008-0250

Strafe & Co                                        Arizona Municipal Bond      99.79%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO BOX 710211
Columbus, OH 43271-0211

Strafe & Co                                        Large Cap Growth Fund       89.31%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Strafe & Co                                        Mid Cap Value        
BOIA - One Group Operations                        Fund                        86.93%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

Banc One Securities Corp FBO                       Mid Cap Growth Fund         83.94%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville, OH 43081-4903

Strafe & Co Cash                                   Mid Cap Growth Fund         84.32%              Record
BOIA - One Group Operations                        Class I
1111 POLARIS PARKWAY
PO Box 710211
Columbus, OH 43271-0211

Strafe & Co                                        Income Bond Fund            88.46%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211
</TABLE>
    

                                      153
<PAGE>   667

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Strafe & Co                                        Intermediate Tax-Free Fund  99.46%              Record
BOIA _ One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Dean Witter FBO                                    Prime Money Market Fund     57.58%              Record
Banc One Securities                                Class A
PO Box 250
Church Street Station
New York, NY 10013-0250

BISYS Fund Services Inc                            Prime Money Market Fund     30.84%              Record
Fbo Bank One Corporate Sweep                       Class A
3435 STELZER ROAD STE 1000
Columbus OH 43219-6004

Strafe & Co                                        Prime Money Market Fund     91.10%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Dean Witter For the Benefit Of                     US Treasury Securities      50.63%              Record
Martin Homes Inc Prof Shar Pln                     Money Market Fund
PO Box 250 Church Street Station                   Class C
New York, NY 10008-0250

Strafe & Co (N)                                    US Treasury Securities      86.00%              Record
BOIA - One Group Operations                        Money Market Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Dean Witter FBO                                    Municipal Money Market      44.38%              Record
Banc One Securities                                Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

Strafe & Co                                        Municipal Money Market      95.68%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

Dean Witter For The Benefit Of                     Equity Income Fund          68.69%              Record
McKee Char TR/Lynn A Hammond &                     Class C
Clare W White Co-TTEES
Church St Station - PO Box 250
New York NY 10013-0250
</TABLE>
    

                                      154
<PAGE>   668

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Strafe & Co                                        Equity Income Fund          92.60%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       Equity Index Fund           35.89%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp Fbo                       Equity Index Fund           61.27%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Strafe & Co.                                       Equity Index Fund           86.94%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Plan-Equity Fund                 Equity Index Fund           32.61%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Strafe & Co.                                       Large Cap Value Fund        86.94%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Ohio Municipal Bond Fund    98.70%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       International Equity        60.15%              Record
The One Investment Solution                        Index Fund
733 Greencrest Dr                                  Class C
Westerville OH 43081-4903

Strafe & Co.
BOIA - One Group Operations                        International Equity        88.52%              Record
1111 Polaris Parkway                               Index Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211
</TABLE>
    



                                      155
<PAGE>   669

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Strafe & Co.
BOIA - One Group Operations                        Short-Term Bond Fund        90.40%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.
BOIA - One Group Operations                        Louisiana Municipal Bond    96.91%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       Value Growth Fund           82.92%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903 

Strafe & Co.
BOIA - One Group Operations                        Value Growth Fund           81.54%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Small Cap Growth Fund       78.04%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Balanced Fund               90.92%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

FCC Pension                                        Balanced Fund               33.90%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter FBO                                    Ohio Municipal Money        99.10%              Record
Banc One Securities                                Market Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

Strafe & Co.
BOIA - One Group Operations                        Ohio Municipal Money        95.04%              Record
1111 Polaris Parkway                               Market Fund
</TABLE>
    


                                      156
<PAGE>   670

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
PO Box 710211                                      Class I
Columbus OH 43271-0211

Banc One Securities Corp FBO                       Municipal Income Fund       40.70%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp FBO
The One Investment Solution                        Municipal Income Fund       51.03%              Record
733 Greencrest Dr                                  Class C
Westerville OH 43081-4903

Strafe & Co.                                       Municipal Income Fund       99.16%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.
BOIA - One Group Operations                        Kentucky Municipal Bond     93.42%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     West Virginia Municipal     41.41%              Record
Balzout Inc DBA S&E Printing                       Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       West Virginia Municipal     98.77%              Record
BOIA - One Group Operations                        Bond Fund Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Government Bond Fund        89.08%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Ultra Short Term Income     87.99%              Record
7BOIA - One Group Operations                       Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211
</TABLE>
    

                                      157
<PAGE>   671

   
<TABLE>
<S>                                                <C>                         <C>                 <C>   
Banc One Securities Corp FBO                       Intermediate Bond Fund      53.06%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp FBO                       Intermediate Bond Fund      42.04%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Strafe & Co.                                       Intermediate Bond Fund      91.03%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Investor Growth Fund        66.42%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Investor Growth & Income    81.44%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Investor Balanced Fund      82.93%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Investor Conservative       84.16%              Record
BOIA - One Group Operations                        Growth Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211
</TABLE>
    




                                      158
<PAGE>   672
   
<TABLE>
<S>                                                <C>                         <C>                 <C>   
Strafe & Co.                                       Treasury & Agency Fund      99.86%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Treasury Only Money         79.18%              Record
BOIA - One Group Operations                        Market Fund
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       US Government Money         80.32%              Record
BOIA - One Group Operations                        Market Fund
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

The One Group Services Company                     High Yield Bond Fund        87.47%              Record
C/O Fund Administration                            Class A
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Services Company                     High Yield Bond Fund        86.96%              Record
C/O Fund Administration                            Class B
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth & Income Fund        High Yield Bond Fund        52.67%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth Fund                 High Yield Bond Fund        46.71%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004
</TABLE>

         AS A RESULT, THE AFOREMENTIONED PERSONS MAY BE DEEMED TO BE
"CONTROLLING PERSONS" OF THE CLASS OF SHARES OF THE FUND IN WHICH THEY OWN SUCH
SHARES UNDER THE 1940 ACT.

         THE TABLE BELOW INDICATES RECORD AND BENEFICIAL OWNERS OF OVER 5% OF
ANY CLASS OF SHARES OF ANY FUND OF THE TRUST.

<TABLE>
<S>                                                <C>                         <C>                 <C>   
Northern Trust Bank of AZ Ttee                     Arizona Municipal Bond      26.21%              Record
F0R THOMAS A BRAND & REV TRUST                     Fund
</TABLE>
    


                                      159
<PAGE>   673

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
PO BOX 92956                                       Class A
Chicago, IL 60675-2956

Dean Witter Reynolds                               Arizona Municipal Bond      22.10%              Record
FBO Theodore Cesarano                              Fund
4617 E. Bernell Road                               Class A
Phoenix, AZ 85028-5520

Dean Witter for the Benefit of                     Arizona Municipal Bond      11.29%              Record
Elizabeth Ryan Miller                              Fund
4140 N 49th Way                                    Class A
Church St Station - P.O. Box 250
New York, NY 10013-0250

GUST TRUST UNDER AGREEMENT 1/17                    Arizona Municipal Bond      9.53%               Record
Devens Gust & Mary Elizabeth Gust                  Fund
Co-Trustees KY  40207-2626                         Class A
P.O. Box 25
Mule Creek, NM 88051-0025

Dean Witter For The Benefit Of                     Arizona Municipal Bond      7.89%               Record
The David B & Frances L Hartline                   Fund
PO BOX 250 CHURCH STREET STATION                   Class A
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Arizona Municipal Bond      6.13%               Record
William J Lofy Trust                               Fund
PO BOX 250 CHURCH STREET STATION                   Class A
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Arizona Municipal Bond      32.02%              Record
Charles Stoddard &                                 Fund
P.O. Box 250 -Church Street Station                Class B
New York, NY 10008-0250

Carolyn S Ward                                                                                     Record
James D Ward JT TEN                                Arizona Municipal Bond      20.91%
825 W Annandale                                    Fund
Tucson, AZ 85737-6923                              Class B
</TABLE>
    

                                      160
<PAGE>   674

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     Arizona Municipal Bond      16.91%              Record
Eugene B Debuck                                    Fund
4550 North Flowing Wells #90                       Class B
Church St Station - P.O. Box 250
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Arizona Municipal Bond      13.48%              Record
Marshall L Silverstein Trust                       Fund
P.O. Box 250 Church Street Station                 Class B
New York, NY 10008-0250
Scottsdale, AZ  85258-1618

Dean Witter For The Benefit Of                     Arizona Municipal Bond      8.31%               Record
Pete R Samorano &                                  Fund
P.O. Box 250 Church Street Station                 Class B
New York, NY 10008-0250

Strafe & Co                                        Arizona Municipal Bond      99.79%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

Dean Witter For The Benefit Of                     Large Cap Growth Fund       14.69%              Record
Selma J Berry &                                    Class C
Colin G Berry JTTEN
Church St Station - PO Box 250
New York, NY 10008-0250

Dean Witter Reynolds Cust For                      Large Cap Growth Fund       9.85%               Record
Alvin B Wesneski                                   Class C
P.O. Box 250 Church Street Station
New York, NY 10008-0250

DWR Cust For Dr. Barbara S Isaacs                  Large Cap Growth Fund       5.54%               Record
FBO BARBARA S ISAACS                               Class C
P.O. Box 250 Church Street Station
New York, NY 10008-0250

Strafe & Co                                        Large Cap Growth Fund       89.31%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Bank One Corporation                               Large Cap Growth Fund       11.45%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607
</TABLE>
    

                                      161
<PAGE>   675


<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Banc One Sec Svgs Plan                             Large Cap Growth Fund       10.42%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Strafe & Co
BOIA - One Group Operations                        Mid Cap Value Fund          86.93%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

Bank One Corporation                               Mid Cap Value Fund          12.86%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

The One Group Investor Growth Fund                 Mid Cap Value Fund          5.12%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus, OH 43219-6004


Banc One Securities Corp FBO                       Mid Cap Growth Fund         16.27%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville, OH 43081-4903

Invesco Trust Co TTEE                              Mid Cap Growth Fund         5.86%               Record
T D Williamson, Inc Thrift Plan                    Class A
PO Box 77405
Atlanta, GA 30357-1405

Banc One Securities Corp FBO                       Mid Cap Growth Fund         83.94%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville, OH 43081-4903

Strafe & Co Cash                                   Mid Cap Growth Fund         84.32%              Record
BOIA - One Group Operations                        Class I
1111 POLARIS PARKWAY
PO Box 710211
Columbus, OH 43271-0211

BANK ONE CORPORATION                               Mid Cap Growth Fund         9.64%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Income Bond Fund            11.34%              Record
Alpert Corp Money Purchase Plan                    Class A
Steven Kurtz TTEE
5 World Trade Center 6th Floor
New York, NY 10048-0205

Strafe & Co                                        Income Bond Fund            88.46%              Record
BOIA - One Group Operations                        Class I
</TABLE>
    


                                      162
<PAGE>   676

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Dean Witter for the Benefit of                     Intermediate Tax-Free Fund  6.58%               Record
Jerome Kearns &                                    Class A
PO Box 250 Church Street Station
New York, NY 10008-0250

J Noland Singletary                                Intermediate Tax-Free Fund  6.12%               Beneficial
7350 Bocage Blvd                                   Class A
Baton Rouge LA 70809-1138

Dean Witter For The Benefit Of                     Intermediate Tax-Free Fund  5.34%               Record
Leon Morgan Trust                                  Class B
C/O Leon Morgan TTEE
Church St Station - PO Box 250
New York, NY 10013-0250

Strafe & Co                                        Intermediate Tax-Free Fund  99.46%              Record
BOIA _ One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Dean Witter FBO                                    Prime Money Market Fund     57.58%              Record
Banc One Securities                                Class A
PO Box 250
Church Street Station
New York, NY 10013-0250

BISYS Fund Services Inc                            Prime Money Market Fund     30.84%              Record
Fbo Bank One Corporate Sweep                       Class A
3435 Stelzer Road Ste 1000
Columbus OH 43219-6004

Strafe & Co                                        Prime Money Market Fund     91.10%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Bank One Trust Company NA                          Prime Money Market Fund     7.48%               Record
Omnibus-Corporate Cash Sweep AC                    Class I
Attn Cash Management DB3
235 W Schrock Rd
Westerville OH 43081-2874

BISYS Fund Services Inc                            US Treasury Securities      22.46%              Record
Fbo Bank One Corporate Sweep                       Money Market Fund
3435 Stelzer Road Suite 1000                       Class A
Columbus OH 43219-6004

</TABLE>
    


                                      163
<PAGE>   677

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
National Financial Services Corp                   US Treasury Securities      21.83%              Record
Fbo Our Customers                                  Money Market Fund
200 Liberty St World Financial CT                  Class A
New York, NY 10281-1003

BISYS Fund Services Inc                            US Treasury Securities      19.54%              Record
Fbo Bank One Securities                            Money Market Fund
3435 Stelzer Road Suite 1000                       Class A
Columbus OH 43219-6004

Dean Witter FBO                                    US Treasury Securities      18.07%              Record
Banc One Securities                                Money Market Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250


BISYS Fund Services Inc                            US Treasury Securities      15.08%              Record
Fbo Bank One Texas Sweep                           Money Market Fund
Attn Mike Bryan                                    Class A
3435 Stelzer Road Suite 1000
Columbus OH 43219-6004

NFSC FEBO #093-954381                              US Treasury Securities      8.12%               Record
Chung Shing Chiang                                 Money Market Fund
3337 Somerset                                      Class B
New Orleans, LA 70131-5361

Dean Witter For the Benefit Of                     US Treasury Securities      8.01%               Record
Mary Sue Gilpin                                    Money Market Fund
413 Dunmoreland Circle                             Class B
5 World Trade Center, 6th Floor
New York, NY 10048-0205

NFSC FEBO #AFL-668885                              US Treasury Securities      7.27%               Record
FNBC Cust Collateral Acct FBO                      Money Market Fund
Sterling H Smith                                   Class B
Carolyn S Smith
PO Box 493
Amite, LA 70422

State Street Bank & Trust Co                       US Treasury Securities      5.84%               Record
Sep IRA Jeffrey S Lux                              Money Market Fund
2220 Justice Street                                Class B
Monroe, LA 71201-3620

Dean Witter For the Benefit Of                     US Treasury Securities      5.10%               Record
Carmen T Teller and                                Money Market Fund
PO Box 250 Church Street Station                   Class B
New York, NY 10008-0250
</TABLE>
    

                                      164
<PAGE>   678

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For the Benefit Of                     US Treasury Securities      50.63%              Record
Martin Homes Inc Prof Shar Pln                     Money Market Fund
PO Box 250 Church Street Station                   Class C
New York, NY 10008-0250

Evelyn C Balser                                    US Treasury Securities      15.99%              Beneficial
Raymond F Balser JT TEN                            Money Market Fund
191 Brigham Hill Rd                                Class C
North Grafton, MA 01536-1117

Dean Witter Reynolds Cust For                      US Treasury Securities      12.79%              Record
Paul E Puckett                                     Money Market Fund
PO Box 250 Church Street Station                   Class C
New York, NY 10008-0250


Dean Witter For The Benefit Of                     US Treasury Securities      7.66%               Record
Osareni Christopher Ogiesoba & Margaret Iyobosa    Money Market Fund
Ogiesoba JTTE                                      Class C
Church Street Station - PO Box 250
New York, NY 10013-0250

Dean Witter For The Benefit Of                     US Treasury Securities      7.52%               Record
Steven R Swift &                                   Money Market Fund
PO Box 250 - Church Street Station                 Class C
New York, NY 10008-0250

Strafe & Co (N)                                    US Treasury Securities      86.00%              Record
BOIA - One Group Operations                        Money Market Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Bank One Trust Company NA                          US Treasury Securities      13.70%              Record
Omnibus-Corporate Cash Sweep AC                    Money Market Fund
Attn: Cash Management DB3                          Class I
235 W Schrock Rd
Westerville OH 43081-2874

Dean Witter FBO                                    Municipal Money Market      44.38%              Record
Banc One Securities                                Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

BISYS Fund Services Inc                            Municipal Money Market      24.62%              Record
FBO Bank One Corporate Sweep                       Fund
3435 Stelzer Road Suite 1000                       Class A
Columbus OH 43219-6004
</TABLE>
    

                                      165
<PAGE>   679

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
National Financial Services Corp                   Municipal Money Market      24.08%              Record
FBO Our Customers                                  Fund
200 Liberty St World Financial Ct                  Class A
New York, NY 10281-1003

Strafe & Co                                        Municipal Money Market      95.68%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

DC Livestock Co Ltd Part Yea                       Municipal Money Market      5.46%               Beneficial
100 E Broad Street                                 Fund
Columbus, OH 43215-3607                            Class I


Dean Witter For The Benefit Of                     Equity Income Fund          68.69%              Record
McKee Char TR/Lynn A Hammond &                     Class C
Clare W White Co-TTEES
Church St Station - PO Box 250
New York NY 10013-0250

UMB Bank Cust Fbo                                  Equity Income Fund          6.92%               Record
Bruce W Young IRA                                  Class C
718 Sycamore Ave SPC 200
VISTA CA 92083-7952

Dean Witter For The Benefit Of                     Equity Income Fund          5.68%               Record
Williams Brother Construction                      Class C
Inc 401(K) PSP Thomas J Williams
Church St Station - PO Box 250
New York NY 10013-0250

Strafe & Co                                        Equity Income Fund          92.60%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       Equity Index Fund           35.89%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp Fbo                       Equity Index Fund           61.27%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903


</TABLE>
    

                                      166
<PAGE>   680

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Strafe & Co.                                       Equity Index Fund           86.94%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Plan -Equity Fund                Equity Index Fund           32.61%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Strafe & Co.                                       Large Cap Value Fund        86.94%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Bank One Corporation                               Large Cap Value Fund        23.00%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Ohio Municipal Bond Fund    5.74%               Record
Vivian R Sauls                                     Class A
519 Chapel Rd
Church St Station - PO Box 250
New York NY 10013-0250

Strafe & Co.                                       Ohio Municipal Bond Fund    98.70%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

NES Group Inc Corp Investmt Act                    Ohio Municipal Bond Fund    6.90%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Firstar Trust Co TTEE                              International Equity        18.65%              Record
FBO Milwaukee Foundation - Equit                   Index Fund
P.O. Box 1787                                      Class A
Milwaukee WI 53201-1787

Banc One Securities Corp Fbo                       International Equity        60.15%              Record
The One Investment Solution                        Index Fund
733 Greencrest Dr                                  Class C
Westerville OH 43081-4903

Dean Witter For The Benefit Of                     International Equity        14.98%              Record
Robert M Lynch &                                   Index Fund
PO Box 250 Church Street Station                   Class C
New York, NY 1008-0250
</TABLE>
    



                                      167
<PAGE>   681

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
UMB Bank Cust FBO                                  International Equity        9.95%               Record
Doris Erickson 403B                                Index Fund
233 Hedstrom Dr                                    Class C
Buffalo NY 14226-3434

Dean Witter For The Benefit Of                     International Equity        5.65%               Record
John S Wagner &                                    Index Fund
PO Box 250 Church Street Station                   Class C
NEW YORK, NY 1008-0250

Strafe & Co.
BOIA - One Group Operations                        International Equity        88.52%              Record
1111 Polaris Parkway                               Index Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211


Bank One Corporation                               International Equity        14.86%              Beneficial
100 E Broad Street                                 Index Fund
Columbus, OH 43215-3607                            Class I

Wallace & Co                                       Short-Term Bond Fund        6.74%               Record
PO Box 21119                                       Class A
Shreveport LA 71152-0001 

Strafe & Co.
BOIA - One Group Operations                        Short-Term Bond Fund        90.40%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.
BOIA - One Group Operations                        Louisiana Municipal Bond    96.91%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       Diversified Equity Fund     21.51%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp Fbo                       Diversified Equity Fund     82.92%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903 

Strafe & Co.
BOIA - One Group Operations                        Diversified Equity Fund     81.54%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211
</TABLE>
    


                                      168
<PAGE>   682

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
The One Group Investor Growth & Income Fund
C/O Mark Redman                                    Diversified Equity Fund     5.39%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth Fund
C/O Mark Redman                                    Diversified Equity Fund     5.35%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004


Melvin Skol                                        Small Cap Growth Fund       19.50%              Beneficial
2811 Scley St                                      Class C
Erie, PA 16508-1719

Dean Witter For The Benefit Of                     Small Cap Growth Fund       16.01%              Record
Robert Kennedy and                                 Class C
Annemarie Kennedy Reisinger JTT
Church St Station - PO Box 250
New York, NY 10013-0250

Judith M Torrico                                   Small Cap Growth Fund       11.93%              Beneficial
101 Nicholson St                                   Class C
Buffalo, NY 14214-1128

State Street Bank & Trust Co                       Small Cap Growth Fund       7.60%               Record
Cust for the IRA of                                Class C
Linda L Cole
14 Penguin Ct
Woodlands TX 77380-1827

Dean Witter For The Benefit Of                     Small Cap Growth Fund       5.01%               Record
Wells Pickney & McHugh                             Class C
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Small Cap Growth Fund       78.04%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

The One Group Investor Growth Fund                 Small Cap Growth Fund       9.45%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004
</TABLE>
    



                                      169
<PAGE>   683

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Firstar Trust Company                              Small Cap Growth Fund       5.57%               Record
FBO Milwaukee Foundation                           Class I
PO Box 1787
Milwaukee WI 53201-1787

The One Group Investor Growth & Income Fund        Small Cap Growth Fund       5.33%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004

Strafe & Co.
BOIA - One Group Operations                        Balanced Fund               90.92%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

FCC Pension                                        Balanced Fund               33.90%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter FBO                                    Ohio Municipal Money        99.10%              Record
Banc One Securities                                Market Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

Strafe & Co.
BOIA - One Group Operations                        Ohio Municipal Money        95.04%              Record
1111 Polaris Parkway                               Market Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Douglas Peacock                                    Ohio Municipal Money        11.65%              Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607                            Class I

Henny Penny Corp Money Mkt Acct                    Ohio Municipal Money        10.32%              Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607                            Class I

Elizabeth Bertschy                                 Ohio Municipal Money        5.40%               Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607                            Class I

Banc One Securities Corp FBO                       Municipal Income Fund       40.70%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903
</TABLE>
    



                                      170
<PAGE>   684

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Banc One Securities Corp FBO                       Municipal Income Fund       51.03%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Dean Witter For The Benefit Of                     Municipal Income Fund       6.48%               Record
Roberta A Silberstein 1984                         Class C
Church St Station - PO Box 250
New York, NY 10013-0250

Dean Witter For The Benefit Of                     Municipal Income Fund       6.47%               Record
Gary R Duckert &                                   Class C
PO Box 250 Church Street Station
New York, NY 10008-0250

Strafe & Co.                                       Municipal Income Fund       99.16%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     Kentucky Municipal Bond     11.89%              Record
Gary Osswald                                       Fund
PO Box 250 Church Street Station                   Class A
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Kentucky Municipal Bond     6.44%               Record
Karrick Scott Collins Trust                        Fund
Karrick Scott Collins TTEE                         Class A
Church St Station - PO Box 250
New York, NY 10013-0250

Dean Witter For The Benefit Of                     Kentucky Municipal Bond     5.05%               Record
Joan H Willetts & First Federal                    Fund
PO Box 250 Church Street Station                   Class B
New York, NY 10008-0250

Strafe & Co.
BOIA - One Group Operations                        Kentucky Municipal Bond     93.42%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     West Virginia Municipal     41.41%              Record
Balzout Inc DBA S&E Printing                       Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250
</TABLE>
    




                                      171
<PAGE>   685

<TABLE>
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     West Virginia Municipal     11.26%              Record
Stephen A Lewis                                    Bond Fund Class A
3720 Noyles Avenue
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     West Virginia Municipal     8.38%               Record
James F Duncan                                     Bond Fund Class A
PO Box 250 Church Street Station
NEW YORK NY 10008-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     8.21%               Record
Sally L Wilson Trust                               Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     7.01%               Record
Charleston Concrete Floor Co                       Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     5.42%               Record
James Henry Dean &                                 Bond Fund Class A
Anna K Dean JTTEN
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     5.21%               Record
C Carl Tully                                       Bond Fund Class A
4530 Spring Hill
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     West Virginia Municipal     5.18%               Record
R Clark Morton                                     Bond Fund Class A
129 Elm Street
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     12.09%              Record
Katherine Poe                                      Bond Fund Class B
606 River Lane
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     West Virginia Municipal     6.32%               Record
Charleston Concrete Floor CO                       Bond Fund Class B
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       West Virginia Municipal     98.77%              Record
</TABLE>


                                      172
<PAGE>   686

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
BOIA - One Group Operations                        Bond Fund Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Government Bond Fund        89.08%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       22.40%              Record
Samaritan Health Plan                              Fund
PO Box 250 Church Street Station                   Class A
New York NY 10008-0250

Investment Company Institute                       Ultra Short-Term Bond       9.29%               Beneficial
1401 H St NW                                       Fund
Washington DC 20005-2110                           Class A

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       6.11%               Record
Genesis Health Care System                         Fund
800 Forest Avenue                                  Class A
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       5.93%               Record
Obleness Memorial Hospital                         Fund
C/O Donald E Reuter                                Class A
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       5.54%               Record
Asher Land & Mineral LTD                           Fund
PO Box 463                                         Class A
Pineville, KY 40977-0463

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       5.24%               Record
Thomas Electric Inc                                Fund
7601 N 74th Avenue Class A 
5 World Trade Center 6th Floor 
New York NY 10048-0205

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       8.09%               Record
Jeanette P Reilly Revocable Trust                  Fund
PO Box 250 Church Street Station                   Class B
New York NY 10008-0250

Dean Witter For The Benefit Of                     Ultra Short-Term Bond       7.86%               Record
Samuel D Goldberg                                  Fund
</TABLE>
    


                                      173
<PAGE>   687

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
PO Box 250 Church Street Station                   Class B
New York NY 10008-0250

Strafe & Co.                                       Ultra Short-Term Bond       87.99%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp FBO                       Intermediate Bond Fund      53.06%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp FBO                       Intermediate Bond Fund      42.04%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Dean Witter For The Benefit Of                     Intermediate Bond Fund      7.60%               Record
Dennis J Furlong &                                 Class C
PO Box 250 Church Street Station
New York NY  10008-0250

Dean Witter For The Benefit Of                     Intermediate Bond Fund      6.19%               Record
Williams Brother Construction                      Class C
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Intermediate Bond Fund      91.03%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Bank One TTEE                                      Investor Growth Fund        5.72%               Record
Harrison Holding Corp 401K                         Class A
C/O Banc One Investment Mgmt
Retirement Services - Daily R K
190 Heatherdown Drive
Westerville OH 43081-2868

Dean Witter For The Benefit Of                     Investor Growth Fund        5.28%               Record
William D Robertson DDS PSP                        Class C
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Investor Growth Fund        66.42%              Record
BOIA - One Group Operations                        Class I
</TABLE>
    


                                      174
<PAGE>   688

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Pl - Inv Grwth                   Investor Growth Fund        19.20%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Bank One TTEE                                      Investor Growth Fund        12.28%              Record
Brillion Iron Works P/S                            Class I
C/O Banc One Investment Mgmt
Retirement Services - Daily R K
190 Heatherdown Drive
Westerville OH 43081-2868

Virginia R Corrin                                  Investor Growth Fund        9.01%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Investor Growth & Income    8.14%               Record
St Mary's Educational Endowment Foundation         Fund
Church St Station PO Box 250                       Class C
New York NY 10013-0250

Dean Witter For The Benefit Of                     Investor Growth & Income    7.44%               Record
Milo L Meacham Jr                                  Fund
PO Box 250 Church Street Station                   Class C
New York NY 10008-0250

Strafe & Co.                                       Investor Growth & Income    81.44%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Revco D.S., Inc. Serp - Trust A                    Investor Growth & Income    14.30%              Beneficial
100 E Broad Street                                 Fund
Columbus, OH 43215-3607                            Class I

Banc One Sec Svgs Plan                             Investor Growth & Income    13.65%              Beneficial
100 E Broad Street                                 Fund
Columbus, OH 43215-3607                            Class I

Institutional Trust Co TTEE                        Investor Balanced Fund      8.62%               Record
PBC Industrial Supplies Inc Plan                   Class A
PO Box 77405
Atlanta, GA 30357-1405
</TABLE>
    





                                      175
<PAGE>   689

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
                                                                               6.71%               Record
Dean Witter For The Benefit Of                     Investor Balanced Fund
Joseph A Hess                                      Class C
IRA Standard Dated 11/18/97
Church St Station - PO Box 250
New York NY 10013-0250

State Street Bank & Trust Co                       Investor Balanced Fund      6.46%               Record
Cust For The IRA Rollover Of                       Class C
George L Allison
768 E Indiana Ave
Spencer IN 47460-1538

Dean Witter For The Benefit Of                     Investor Balanced Fund      6.23%               Record
James B White &                                    Class C
Norma J White JTTEN
Church St Station - PO Box 250
New York NY 10013-0250

Strafe & Co.                                       Investor Balanced Fund      82.93%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Kenosha Carpenters #161 Pens-Mgd                   Investor Balanced Fund      8.10%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Centennial Liquor Retirement Plan                  Investor Balanced Fund      7.81%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Affiliated MPP                                     Investor Balanced Fund      6.51%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Investor Conservative       11.63%              Record
Paavo Ensio &                                      Growth Fund
PO Box 250 Church Street Station                   Class A
New York NY 10008-0250

DWR Cust For Central Blueprint Co                  Investor Conservative       6.04%               Record
FBO Plan Administrator                             Growth Fund
VIP Plus PFT Sharing DTD 09/26/97                  Class C 
Church Street Station - PO Box 250 
New York NY 10013-0250
</TABLE>
    




                                      176
<PAGE>   690

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
                                                                               84.16%              Record
Strafe & Co.                                       Investor Conservative
BOIA - One Group Operations                        Growth Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Pl - Inv Con Grwth               Investor Conservative       17.69%              Beneficial
100 E Broad Street                                 Growth Fund
Columbus, OH 43215-3607                            Class I


Kenosha Carpenters #161 Pens-Mgd                   Investor Conservative       14.40%              Beneficial
100 E Broad Street                                 Growth Fund
Columbus, OH 43215-3607                            Class I

Shelly & Sands MPP                                 Investor Conservative       5.03%               Beneficial
100 E Broad Street                                 Growth Fund
Columbus, OH 43215-3607                            Class I

Dean Witter For The Benefit Of                     Treasury & Agency Fund      8.82%               Record
Billy J Eisenhour                                  Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     Treasury & Agency Fund      6.54%               Record
Maricopa County Municipal                          Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Treasury & Agency Fund      99.86%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Treasury Only Money         79.18%              Record
BOIA - One Group Operations                        Market Fund
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

MEC Qualified                                      Treasury Only Money         13.07%              Beneficial
100 E. Broad Street                                Market Fund
Columbus OH 43215-3607

BISYS Fund Services Inc                            Treasury Only Money         9.71%               Record
FBO Bank One Corporate Sweep                       Market Fund
3435 Stelzer Road Suite 1000
Columbus OH 43219-6004

</TABLE>
    


                                      177
<PAGE>   691

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
State Compensation                                 Treasury Only Money         6.05%               Beneficial
100 E. Broad Street                                Market Fund
Columbus OH 43215-3607

Strafe & Co.                                       US Government Money         80.32%              Record
BOIA - One Group Operations                        Market Fund
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Bank One Texas NA                                  US Government Money         8.72%               Beneficial
1717 Main St                                       Market Fund
Dallas TX 75201-4605

BWC - Miller Anderson                              US Government Money         8.14%               Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607

BISYS Fund Services Inc                            US Government Money         5.56%               Record
FBO Bank One Corporate Sweep                       Market Fund
3435 Stelzer Road Suite 1000
Columbus OH 43219-6004

BWC - Hyperion Capital                             US Government Money         5.26%               Beneficial
100 E BROAD STREET                                 Market Fund
Columbus, OH 43215-3607

The One Group Services Company                     High Yield Bond Fund        87.47%              Record
C/O Fund Administration                            Class A
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Services Company                     High Yield Bond Fund        86.96%              Record
C/O Fund Administration                            Class B
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth & Income Fund        High Yield Bond Fund        52.67%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth Fund                 High Yield Bond Fund        46.71%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004
</TABLE>
    


                                      178
<PAGE>   692

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Northern Trust Bank of AZ Ttee                     Arizona Municipal Bond      26.21%              Record
F0R THOMAS A BRAND & REV TRUST                     Fund
PO BOX 92956                                       Class A
Chicago, IL 60675-2956

Dean Witter Reynolds                               Arizona Municipal Bond      22.10%              Record
FBO Theodore Cesarano                              Fund
4617 E. Bernell Road                               Class A
Phoenix, AZ 85028-5520

Dean Witter for the Benefit of                     Arizona Municipal Bond      11.29%              Record
Elizabeth Ryan Miller                              Fund
4140 N 49th Way                                    Class A
Church St Station - P.O. Box 250
New York, NY 10013-0250

GUST TRUST UNDER AGREEMENT 1/17                    Arizona Municipal Bond      9.53%               Record
Devens Gust & Mary Elizabeth Gust                  Fund
Co-Trustees KY  40207-2626                         Class A
P.O. Box 25
Mule Creek, NM 88051-0025

Dean Witter For The Benefit Of                     Arizona Municipal Bond      7.89%               Record
The David B & Frances L Hartline                   Fund
PO BOX 250 CHURCH STREET STATION                   Class A
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Arizona Municipal Bond      6.13%               Record
William J Lofy Trust                               Fund
PO BOX 250 CHURCH STREET STATION                   Class A
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Arizona Municipal Bond      32.02%              Record
Charles Stoddard &                                 Fund
P.O. Box 250 -Church Street Station                Class B
New York, NY 10008-0250

Carolyn S Ward                                                                                     Record
James D Ward JT TEN                                Arizona Municipal Bond      20.91%
825 W Annandale                                    Fund
Tucson, AZ 85737-6923                              Class B
</TABLE>
    



                                      179
<PAGE>   693

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     Arizona Municipal Bond      16.91%              Record
Eugene B Debuck                                    Fund
4550 North Flowing Wells #90                       Class B
Church St Station - P.O. Box 250
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Arizona Municipal Bond      13.48%              Record
Marshall L Silverstein Trust                       Fund
P.O. Box 250 Church Street Station                 Class B
New York, NY 10008-0250
Scottsdale, AZ  85258-1618

Dean Witter For The Benefit Of                     Arizona Municipal Bond      8.31%               Record
Pete R Samorano &                                  Fund
P.O. Box 250 Church Street Station                 Class B
New York, NY 10008-0250

Strafe & Co                                        Arizona Municipal Bond      99.79%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211


Dean Witter For The Benefit Of                     Large Cap Growth Fund       14.69%              Record
Selma J Berry &                                    Class C
Colin G Berry JTTEN
Church St Station - PO Box 250
New York, NY 10008-0250

Dean Witter Reynolds Cust For                      Large Cap Growth Fund       9.85%               Record
Alvin B Wesneski                                   Class C
P.O. Box 250 Church Street Station
New York, NY 10008-0250

DWR Cust For Dr. Barbara S Isaacs                  Large Cap Growth Fund       5.54%               Record
FBO BARBARA S ISAACS                               Class C
P.O. Box 250 Church Street Station
New York, NY 10008-0250

Strafe & Co                                        Large Cap Growth Fund       89.31%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

BANK ONE CORPORATION                               Large Cap Growth Fund       11.45%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607
</TABLE>
    



                                      180
<PAGE>   694

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Banc One Sec Svgs Plan                             Large Cap Growth Fund       10.42%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Strafe & Co
BOIA - One Group Operations                        Mid Cap Value Fund          86.93%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

BANK ONE CORPORATION                               Mid Cap Value Fund          12.86%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

The One Group Investor Growth Fund                 Mid Cap Value Fund          5.12%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus, OH 43219-6004


Banc One Securities Corp FBO                       Mid Cap Growth Fund         16.27%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville, OH 43081-4903

Invesco Trust Co TTEE                              Mid Cap Growth Fund         5.86%               Record
T D Williamson, Inc Thrift Plan                    Class A
PO Box 77405
Atlanta, GA 30357-1405

Banc One Securities Corp FBO                       Mid Cap Growth Fund         83.94%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville, OH 43081-4903

Strafe & Co Cash                                   Mid Cap Growth Fund         84.32%              Record
BOIA - One Group Operations                        Class I
1111 POLARIS PARKWAY
PO Box 710211
Columbus, OH 43271-0211

BANK ONE CORPORATION                               Mid Cap Growth Fund         9.64%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Income Bond Fund            11.34%              Record
Alpert Corp Money Purchase Plan                    Class A
Steven Kurtz TTEE
5 World Trade Center 6th Floor
New York, NY 10048-0205

Strafe & Co                                        Income Bond Fund            88.46%              Record
BOIA - One Group Operations                        Class I
</TABLE>
    


                                      181
<PAGE>   695

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Dean Witter for the Benefit of                     Intermediate Tax-Free Fund  6.58%               Record
Jerome Kearns &                                    Class A
PO Box 250 Church Street Station
New York, NY 10008-0250

J Noland Singletary                                Intermediate Tax-Free Fund  6.12%               Beneficial
7350 Bocage Blvd                                   Class A
Baton Rouge LA 70809-1138

Dean Witter For The Benefit Of                     Intermediate Tax-Free Fund  5.34%               Record
Leon Morgan Trust                                  Class B
C/O Leon Morgan TTEE
Church St Station - PO Box 250
New York, NY 10013-0250

Strafe & Co                                        Intermediate Tax-Free Fund  99.46%              Record
BOIA _ One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus, OH 43271-0211

Dean Witter FBO                                    Prime Money Market Fund     57.58%              Record
Banc One Securities                                Class A
PO Box 250
Church Street Station
New York, NY 10013-0250

BISYS Fund Services Inc                            Prime Money Market Fund     30.84%              Record
Fbo Bank One Corporate Sweep                       Class A
3435 Stelzer Road Ste 1000
Columbus OH 43219-6004

Strafe & Co                                        Prime Money Market Fund     91.10%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Bank One Trust Company NA                          Prime Money Market Fund     7.48%               Record
Omnibus-Corporate Cash Sweep AC                    Class I
Attn Cash Management DB3
235 W Schrock Rd
Westerville OH 43081-2874

BISYS Fund Services Inc                            US Treasury Securities      22.46%              Record
Fbo Bank One Corporate Sweep                       Money Market Fund
3435 Stelzer Road Suite 1000                       Class A
Columbus OH 43219-6004
</TABLE>
    



                                      182
<PAGE>   696

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
National Financial Services Corp                   US Treasury Securities      21.83%              Record
Fbo Our Customers                                  Money Market Fund
200 Liberty St World Financial CT                  Class A
New York, NY 10281-1003

BISYS Fund Services Inc                            US Treasury Securities      19.54%              Record
Fbo Bank One Securities                            Money Market Fund
3435 Stelzer Road Suite 1000                       Class A
Columbus OH 43219-6004

Dean Witter FBO                                    US Treasury Securities      18.07%              Record
Banc One Securities                                Money Market Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250


BISYS Fund Services Inc                            US Treasury Securities      15.08%              Record
Fbo Bank One Texas Sweep                           Money Market Fund
Attn Mike Bryan                                    Class A
3435 Stelzer Road Suite 1000
Columbus OH 43219-6004

NFSC FEBO #093-954381                              US Treasury Securities      8.12%               Record
Chung Shing Chiang                                 Money Market Fund
3337 Somerset                                      Class B
New Orleans, LA 70131-5361

Dean Witter For the Benefit Of                     US Treasury Securities      8.01%               Record
Mary Sue Gilpin                                    Money Market Fund
413 Dunmoreland Circle                             Class B
5 World Trade Center, 6th Floor
New York, NY 10048-0205

NFSC FEBO #AFL-668885                              US Treasury Securities      7.27%               Record
FNBC Cust Collateral Acct FBO                      Money Market Fund
Sterling H Smith                                   Class B
Carolyn S Smith
PO Box 493
Amite, LA 70422

State Street Bank & Trust Co                       US Treasury Securities      5.84%               Record
Sep IRA Jeffrey S Lux                              Money Market Fund
2220 Justice Street                                Class B
Monroe, LA 71201-3620

Dean Witter For the Benefit Of                     US Treasury Securities      5.10%               Record
Carmen T Teller and                                Money Market Fund
PO Box 250 Church Street Station                   Class B
New York, NY 10008-0250
</TABLE>
    



                                      183
<PAGE>   697

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For the Benefit Of                     US Treasury Securities      50.63%              Record
Martin Homes Inc Prof Shar Pln                     Money Market Fund
PO Box 250 Church Street Station                   Class C
New York, NY 10008-0250

Evelyn C Balser                                    US Treasury Securities      15.99%              Beneficial
Raymond F Balser JT TEN                            Money Market Fund
191 Brigham Hill Rd                                Class C
North Grafton, MA 01536-1117

Dean Witter Reynolds Cust For                      US Treasury Securities      12.79%              Record
Paul E Puckett                                     Money Market Fund
PO Box 250 Church Street Station                   Class C
New York, NY 10008-0250
</TABLE>
    




                                      184
<PAGE>   698

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     US Treasury Securities      7.66%               Record
Osareni Christopher Ogiesoba &                     Money Market Fund
Margaret Iyobosa Ogiesoba JTTE                     Class C
Church Street Station - PO Box 250
New York, NY 10013-0250

Dean Witter For The Benefit Of                     US Treasury Securities      7.52%               Record
Steven R Swift &                                   Money Market Fund
PO Box 250 - Church Street Station                 Class C
New York, NY 10008-0250

Strafe & Co (N)                                    US Treasury Securities      86.00%              Record
BOIA - One Group Operations                        Money Market Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Bank One Trust Company NA                          US Treasury Securities      13.70%              Record
Omnibus-Corporate Cash Sweep AC                    Money Market Fund
Attn: Cash Management DB3                          Class I
235 W Schrock Rd
Westerville OH 43081-2874

Dean Witter FBO                                    Municipal Money Market      44.38%              Record
Banc One Securities                                Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

BISYS Fund Services Inc                            Municipal Money Market      24.62%              Record
FBO Bank One Corporate Sweep                       Fund
3435 Stelzer Road Suite 1000                       Class A
Columbus OH 43219-6004

National Financial Services Corp                   Municipal Money Market      24.08%              Record
FBO Our Customers                                  Fund
200 Liberty St World Financial Ct                  Class A
New York, NY 10281-1003

Strafe & Co                                        Municipal Money Market      95.68%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus, OH 43271-0211

DC Livestock Co Ltd Part Yea                       Municipal Money Market      5.46%               Beneficial
100 E Broad Street                                 Fund
Columbus, OH 43215-3607                            Class I
</TABLE>
    




                                      185
<PAGE>   699

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     Equity Income Fund          68.69%              Record
McKee Char TR/Lynn A Hammond &                     Class C
Clare W White Co-TTEES
Church St Station - PO Box 250
New York NY 10013-0250

UMB Bank Cust Fbo                                  Equity Income Fund          6.92%               Record
Bruce W Young IRA                                  Class C
718 Sycamore Ave SPC 200
VISTA CA 92083-7952

Dean Witter For The Benefit Of                     Equity Income Fund          5.68%               Record
Williams Brother Construction                      Class C
Inc 401(K) PSP Thomas J Williams
Church St Station - PO Box 250
New York NY 10013-0250

Strafe & Co                                        Equity Income Fund          92.60%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       Equity Index Fund           35.89%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp Fbo                       Equity Index Fund           61.27%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Strafe & Co.                                       Equity Index Fund           86.94%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Plan -Equity Fund                Equity Index Fund           32.61%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Strafe & Co.                                       Large Cap Value Fund        86.94%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211
</TABLE>
    



                                      186
<PAGE>   700

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
BANK ONE CORPORATION                               Large Cap Value Fund        23.00%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Ohio Municipal Bond Fund    5.74%               Record
Vivian R Sauls                                     Class A
519 Chapel Rd
Church St Station - PO Box 250
New York NY 10013-0250

Strafe & Co.                                       Ohio Municipal Bond Fund    98.70%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

NES Group Inc Corp Investmt Act                    Ohio Municipal Bond Fund    6.90%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Firstar Trust Co TTEE                              International Equity        18.65%              Record
FBO Milwaukee Foundation - Equit                   Index Fund
P.O. Box 1787                                      Class A
Milwaukee WI 53201-1787

Banc One Securities Corp Fbo                       International Equity        60.15%              Record
The One Investment Solution                        Index Fund
733 Greencrest Dr                                  Class C
Westerville OH 43081-4903

Dean Witter For The Benefit Of                     International Equity        14.98%              Record
Robert M Lynch &                                   Index Fund
PO Box 250 Church Street Station                   Class C
New York, NY 1008-0250

UMB Bank Cust FBO                                  International Equity        9.95%               Record
Doris Erickson 403B                                Index Fund
233 Hedstrom Dr                                    Class C
Buffalo NY 14226-3434

Dean Witter For The Benefit Of                     International Equity        5.65%               Record
John S Wagner &                                    Index Fund
PO Box 250 Church Street Station                   Class C
NEW YORK, NY 1008-0250

Strafe & Co.
BOIA - One Group Operations                        International Equity        88.52%              Record
1111 Polaris Parkway                               Index Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211
</TABLE>
    






                                      187
<PAGE>   701

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
BANK ONE CORPORATION                               International Equity        14.86%              Beneficial
100 E Broad Street                                 Index Fund
Columbus, OH 43215-3607                            Class I

Wallace & Co                                       Short-Term Bond Fund        6.74%               Record
PO Box 21119                                       Class A
Shreveport LA 71152-0001 

Strafe & Co.
BOIA - One Group Operations                        Short-Term Bond Fund        90.40%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.
BOIA - One Group Operations                        Louisiana Municipal Bond    96.91%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Banc One Securities Corp Fbo                       Value Growth Fund           21.51%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp Fbo                       Value Growth Fund           82.92%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903 

Strafe & Co.
BOIA - One Group Operations                        Value Growth Fund           81.54%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

The One Group Investor Growth & Income Fund
C/O Mark Redman                                    Value Growth Fund           5.39%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth Fund
C/O Mark Redman                                    Value Growth Fund           5.35%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004
</TABLE>
    




                                      188
<PAGE>   702

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Melvin Skol                                        Small Cap Growth Fund       19.50%              Beneficial
2811 Scley St                                      Class C
Erie, PA 16508-1719

Dean Witter For The Benefit Of                     Small Cap Growth Fund       16.01%              Record
Robert Kennedy and                                 Class C
Annemarie Kennedy Reisinger JTT
Church St Station - PO Box 250
New York, NY 10013-0250

Judith M Torrico                                   Small Cap Growth Fund       11.93%              Beneficial
101 Nicholson St                                   Class C
Buffalo, NY 14214-1128

State Street Bank & Trust Co                       Small Cap Growth Fund       7.60%               Record
Cust for the IRA of                                Class C
Linda L Cole
14 Penguin Ct
Woodlands TX 77380-1827

Dean Witter For The Benefit Of                     Small Cap Growth Fund       5.01%               Record
Wells Pickney & McHugh                             Class C
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Small Cap Growth Fund       78.04%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

The One Group Investor Growth Fund                 Small Cap Growth Fund       9.45%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004

Firstar Trust Company                              Small Cap Growth Fund       5.57%               Record
FBO Milwaukee Foundation                           Class I
PO Box 1787
Milwaukee WI 53201-1787

The One Group Investor Growth & Income Fund        Small Cap Growth Fund       5.33%               Beneficial
The One Group Services Company                     Class I
3435 Stelzer Road
Columbus OH 43219-6004
</TABLE>
    




                                      189
<PAGE>   703

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Strafe & Co.
BOIA - One Group Operations                        Balanced Fund               90.92%              Record
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

FCC Pension                                        Balanced Fund               33.90%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter FBO                                    Ohio Municipal Money        99.10%              Record
Banc One Securities                                Market Fund
PO Box 250                                         Class A
Church Street Station
New York NY 10013-0250

Strafe & Co.
BOIA - One Group Operations                        Ohio Municipal Money        95.04%              Record
1111 Polaris Parkway                               Market Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Douglas Peacock                                    Ohio Municipal Money        11.65%              Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607                            Class I

Henny Penny Corp Money Mkt Acct                    Ohio Municipal Money        10.32%              Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607                            Class I

Elizabeth Bertschy                                 Ohio Municipal Money        5.40%               Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607                            Class I

Banc One Securities Corp FBO                       Municipal Income Fund       40.70%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp FBO                       Municipal Income Fund       51.03%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Dean Witter For The Benefit Of                     Municipal Income Fund       6.48%               Record
Roberta A Silberstein 1984                         Class C
Church St Station - PO Box 250
New York, NY 10013-0250
</TABLE>
    

                                      190
<PAGE>   704

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     Municipal Income Fund       6.47%               Record
Gary R Duckert &                                   Class C
PO Box 250 Church Street Station
New York, NY 10008-0250

Strafe & Co.                                       Municipal Income Fund       99.16%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     Kentucky Municipal Bond     11.89%              Record
Gary Osswald                                       Fund
PO Box 250 Church Street Station                   Class A
New York, NY 10008-0250

Dean Witter For The Benefit Of                     Kentucky Municipal Bond     6.44%               Record
Karrick Scott Collins Trust                        Fund
Karrick Scott Collins TTEE                         Class A
Church St Station - PO Box 250
New York, NY 10013-0250

Dean Witter For The Benefit Of                     Kentucky Municipal Bond     5.05%               Record
Joan H Willetts & First Federal                    Fund
PO Box 250 Church Street Station                   Class B
New York, NY 10008-0250

Strafe & Co.
BOIA - One Group Operations                        Kentucky Municipal Bond     93.42%              Record
1111 Polaris Parkway                               Fund
PO Box 710211                                      Class I
Columbus OH 43271-0211

Dean Witter For The Benefit Of                     West Virginia Municipal     41.41%              Record
Balzout Inc DBA S&E Printing                       Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     11.26%              Record
Stephen A Lewis                                    Bond Fund Class A
3720 Noyles Avenue
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     West Virginia Municipal     8.38%               Record
James F Duncan                                     Bond Fund Class A
PO Box 250 Church Street Station
NEW YORK NY 10008-0250
</TABLE>
    



                                      191
<PAGE>   705

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     West Virginia Municipal     8.21%               Record
Sally L Wilson Trust                               Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     7.01%               Record
Charleston Concrete Floor Co                       Bond Fund Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     5.42%               Record
James Henry Dean &                                 Bond Fund Class A
Anna K Dean JTTEN
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     5.21%               Record
C Carl Tully                                       Bond Fund Class A
4530 Spring Hill
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     West Virginia Municipal     5.18%               Record
R Clark Morton                                     Bond Fund Class A
129 Elm Street
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     West Virginia Municipal     12.09%              Record
Katherine Poe                                      Bond Fund Class B
606 River Lane
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     West Virginia Municipal     6.32%               Record
Charleston Concrete Floor CO                       Bond Fund Class B
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       West Virginia Municipal     98.77%              Record
BOIA - One Group Operations                        Bond Fund Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Government Bond Fund        89.08%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211
</TABLE>
    



                                      192
<PAGE>   706

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  22.40%              Record
Samaritan Health Plan                              Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Investment Company Institute                       Ultra Short-Term Bond Fund  9.29%               Beneficial
1401 H St NW                                       Class A
Washington DC 20005-2110

Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  6.11%               Record
Genesis Health Care System                         Class A
800 Forest Avenue
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  5.93%               Record
Obleness Memorial Hospital                         Class A
C/O Donald E Reuter
Church St Station - PO Box 250
New York NY 10013-0250

Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  5.54%               Record
Asher Land & Mineral LTD                           Class A
PO Box 463
Pineville, KY 40977-0463

Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  5.24%               Record
Thomas Electric Inc                                Class A
7601 N 74th Avenue
5 World Trade Center 6th Floor
New York NY 10048-0205

Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  8.09%               Record
Jeanette P Reilly Revocable Trust                  Class B
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     Ultra Short-Term Bond Fund  7.86%               Record
Samuel D Goldberg                                  Class B
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Ultra Short-Term Bond Fund  87.99%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211
</TABLE>
    




                                      193
<PAGE>   707

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Banc One Securities Corp FBO                       Intermediate Bond Fund      53.06%              Record
The One Investment Solution                        Class A
733 Greencrest Dr
Westerville OH 43081-4903

Banc One Securities Corp FBO                       Intermediate Bond Fund      42.04%              Record
The One Investment Solution                        Class C
733 Greencrest Dr
Westerville OH 43081-4903

Dean Witter For The Benefit Of                     Intermediate Bond Fund      7.60%               Record
Dennis J Furlong &                                 Class C
PO Box 250 Church Street Station
New York NY  10008-0250

Dean Witter For The Benefit Of                     Intermediate Bond Fund      6.19%               Record
Williams Brother Construction                      Class C
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Intermediate Bond Fund      91.03%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Bank One TTEE                                      Investor Growth Fund        5.72%               Record
Harrison Holding Corp 401K                         Class A
C/O Banc One Investment Mgmt
Retirement Services - Daily R K
190 Heatherdown Drive
Westerville OH 43081-2868

Dean Witter For The Benefit Of                     Investor Growth Fund        5.28%               Record
William D Robertson DDS PSP                        Class C
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Investor Growth Fund        66.42%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Pl - Inv Grwth                   Investor Growth Fund        19.20%              Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607
</TABLE>
    

                                      194
<PAGE>   708

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Bank One TTEE                                      Investor Growth Fund        12.28%              Record
Brillion Iron Works P/S                            Class I
C/O Banc One Investment Mgmt
Retirement Services - Daily R K
190 Heatherdown Drive
Westerville OH 43081-2868

Virginia R Corrin                                  Investor Growth Fund        9.01%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Investor Growth & Income    8.14%               Record
St Mary's Educational Endowment Foundation         Fund
Church St Station PO Box 250                       Class C
New York NY 10013-0250

Dean Witter For The Benefit Of                     Investor Growth & Income    7.44%               Record
Milo L Meacham Jr                                  Fund
PO Box 250 Church Street Station                   Class C
New York NY 10008-0250

Strafe & Co.                                       Investor Growth & Income    81.44%              Record
BOIA - One Group Operations                        Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Revco D.S., Inc. Serp - Trust A                    Investor Growth & Income    14.30%              Beneficial
100 E Broad Street                                 Fund
Columbus, OH 43215-3607                            Class I

Banc One Sec Svgs Plan                             Investor Growth & Income    13.65%              Beneficial
100 E Broad Street                                 Fund
Columbus, OH 43215-3607                            Class I

Institutional Trust Co TTEE                        Investor Balanced Fund      8.62%               Record
PBC Industrial Supplies Inc Plan                   Class A
PO Box 77405
Atlanta, GA 30357-1405

Dean Witter For The Benefit Of                     Investor Balanced Fund      6.71%               Record
Joseph A Hess                                      Class C
IRA Standard Dated 11/18/97
Church St Station - PO Box 250
New York NY 10013-0250

State Street Bank & Trust Co                       Investor Balanced Fund      6.46%               Record
Cust For The IRA Rollover Of                       Class C
George L Allison
768 E Indiana Ave
Spencer IN 47460-1538

</TABLE>
    


                                      195
<PAGE>   709

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Dean Witter For The Benefit Of                     Investor Balanced Fund      6.23%               Record
James B White &                                    Class C
Norma J White JTTEN
Church St Station - PO Box 250
New York NY 10013-0250

Strafe & Co.                                       Investor Balanced Fund      82.93%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Kenosha Carpenters #161 Pens-Mgd                   Investor Balanced Fund      8.10%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Centennial Liquor Retirement Plan                  Investor Balanced Fund      7.81%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Affiliated MPP                                     Investor Balanced Fund      6.51%               Beneficial
100 E Broad Street                                 Class I
Columbus, OH 43215-3607

Dean Witter For The Benefit Of                     Investor Conservative       11.63%              Record
Paavo Ensio &                                      Growth Fund
PO Box 250 Church Street Station                   Class A
New York NY 10008-0250

DWR Cust For Central Blueprint Co                  Investor Conservative       6.04%               Record
FBO Plan Administrator                             Growth Fund
VIP Plus PFT Sharing DTD 09/26/97                  Class C
Church Street Station - PO Box 250
New York NY 10013-0250

Strafe & Co.                                       Investor Conservative       84.16%              Record
BOIA - One Group Operations                        Growth Fund
1111 Polaris Parkway                               Class I
PO Box 710211
Columbus OH 43271-0211

Banc One Sec Svgs Pl - Inv Con Grwth               Investor Conservative       17.69%              Beneficial
100 E Broad Street                                 Growth Fund
Columbus, OH 43215-3607                            Class I
</TABLE>
    


                                      196
<PAGE>   710

<TABLE>
   
<S>                                                <C>                         <C>                 <C>   
Kenosha Carpenters #161 Pens-Mgd                   Investor Conservative       14.40%              Beneficial
100 E Broad Street                                 Growth Fund
Columbus, OH 43215-3607                            Class I

Shelly & Sands MPP                                 Investor Conservative       5.03%               Beneficial
100 E Broad Street                                 Growth Fund
Columbus, OH 43215-3607                            Class I

Dean Witter For The Benefit Of                     Treasury & Agency Fund      8.82%               Record
Billy J Eisenhour                                  Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Dean Witter For The Benefit Of                     Treasury & Agency Fund      6.54%               Record
Maricopa County Municipal                          Class A
PO Box 250 Church Street Station
New York NY 10008-0250

Strafe & Co.                                       Treasury & Agency Fund      99.86%              Record
BOIA - One Group Operations                        Class I
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

Strafe & Co.                                       Treasury Only Money         79.18%              Record
BOIA - One Group Operations                        Market Fund
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

MEC Qualified                                      Treasury Only Money         13.07%              Beneficial
100 E. Broad Street                                Market Fund
Columbus OH 43215-3607

BISYS Fund Services Inc                            Treasury Only Money         9.71%               Record
FBO Bank One Corporate Sweep                       Market Fund
3435 Stelzer Road Suite 1000
Columbus OH 43219-6004

State Compensation                                 Treasury Only Money         6.05%               Beneficial
100 E. Broad Street                                Market Fund
Columbus OH 43215-3607

Strafe & Co.                                       US Government Money         80.32%              Record
BOIA - One Group Operations                        Market Fund
1111 Polaris Parkway
PO Box 710211
Columbus OH 43271-0211

</TABLE>
    


                                      197
<PAGE>   711

   
<TABLE>
<S>                                                <C>                         <C>                 <C>   
Bank One Texas NA                                  US Government Money         8.72%               Beneficial
1717 Main St                                       Market Fund
Dallas TX 75201-4605

BWC - Miller Anderson                              US Government Money         8.14%               Beneficial
100 E Broad Street                                 Market Fund
Columbus, OH 43215-3607

BISYS Fund Services Inc                            US Government Money         5.56%               Record
FBO Bank One Corporate Sweep                       Market Fund
3435 Stelzer Road Suite 1000
Columbus OH 43219-6004

BWC - Hyperion Capital                             US Government Money         5.26%               Beneficial
100 E BROAD STREET                                 Market Fund
Columbus, OH 43215-3607

The One Group Services Company                     High Yield Bond Fund        87.47%              Record
C/O Fund Administration                            Class A
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Services Company                     High Yield Bond Fund        86.96%              Record
C/O Fund Administration                            Class B
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth & Income Fund        High Yield Bond Fund        52.67%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004

The One Group Investor Growth Fund                 High Yield Bond Fund        46.71%              Beneficial
C/O Mark Redman                                    Class I
The One Group Services Company
3435 Stelzer Road
Columbus OH 43219-6004
</TABLE>
    


   
    



                                      198
<PAGE>   712

As a group, the Trustee and Officers of the Trust owned less than 1% of the
Shares of each class of the Trust.

   
The financial statements of the Trust are incorporated by reference into this
Statement of Additional Information. For all Funds other than the Predecessor
Funds, the financial statements for the fiscal year ended June 30, 1998 have
been audited by PricewaterhouseCoopers LLP, independent public accountants to
the Trust, as indicated in their reports with respect thereto, and are
incorporated herein by reference in reliance upon the authority of said firm as
experts in accounting and auditing in giving said reports. The financial
Statements for the Predecessor Funds, have been audited by                  ,
independent public accountants to such Funds for the period ended December 31,
1998, as indicated in their reports with respect thereto, and are incorporated
herein by reference in reliance upon the authority of said firm as experts in
accounting and auditing in giving said reports. A copy of the annual reports to
shareholders must accompany the delivery of this Statement of Additional
Information.
    



                                      243




<PAGE>   713


                             Registration Statement
                               of The One Group(R)
                                  on Form N-1A
PART C



         Item 24.  Financial Statements and Exhibits
                   ---------------------------------

                  (a)      Financial Statements:

                           Included in Part A

                           -- Financial Highlights

                  Included in Part B

                  The following financial statements have been incorporated into
                  the Statement of Additional Information by reference to the
                  Annual Report to Shareholders for The One Group, for the
                  fiscal year end June 30, 1998:

                  --       Reports of Independent Accountants for The One Group
                           dated August 18, 1998.

                  --       Statements of Assets and Liabilities at June 30, 1998
                           (audited).

                  --       Statements of Operations for the year ended June 30,
                           1998 (audited).

                  --       Statements of Changes in Net Assets for the year
                           ended June 30, 1998 (audited).

                  --       Schedules of Portfolio Investments at June 30, 1998
                           (audited).

                  --       Notes to Financial Statements dated June 30, 1998
                           (audited).

                  --       Financial Highlights for the periods or years ended
                           June 30, 1994, June 30, 1995, June 30, 1996, June 30,
                           1997 and June 30, 1998 (audited).

   
         Financial Statements for the Small Cap Value Fund, the Diversified Mid
         Cap Fund, the Diversified International Fund, the Market Expansion
         Index Fund, the Bond Fund, the Income Bond Fund, the Intermediate Bond
         Fund, the Short-Term Municipal Bond Fund, the Tax-Free Bond Fund, the
         Michigan Municipal Bond Fund, the Michigan Municipal Money Market Fund,
         the Cash Management Money Market Fund, the Treasury Cash Management
         Money Market Fund, Treasury Prime Cash Management Money Market Fund,
         the U.S. Government Securities Cash Management Money Market Fund, and
         the Municipal Cash Management Money Market Fund for the fiscal year
         ended
    




                                      -1-
<PAGE>   714


         December 31, 1998, will be incorporated by reference to a subsequent
         filing made pursuant to Rule 485(b).

         (b) Exhibits:

         (1)      Amended and Restated Declaration of Trust dated as of February
                  11, 1993 is incorporated by reference to Exhibit (1) to
                  Post-Effective Amendment No. 39 (filed August 16, 1996) to
                  Registrant's Registration Statement on Form N-1A.

         (2)      Code of Regulations as amended and restated as of October 25,
                  1990 is incorporated by reference to Exhibit (2) to
                  Post-Effective Amendment No. 39 (filed August 16, 1996) to
                  Registrant's Registration Statement on Form N-1A.

         (3)      None.

         (4)      Rights of Shareholders.
                  -----------------------

                  The following portions of Registrant's Declaration of Trust
                  incorporated as Exhibit (1) hereto, define the rights of
                  shareholders:


                  5.1  Shares in the Series or Classes of the Trust.
                       ---------------------------------------------

                  A. The Trustees shall have full power and authority, in their
                  sole discretion, without obtaining the prior approval of the
                  Shareholders (either with respect to the Trust as a whole or
                  with respect to any series or classes of the Trust) by vote or
                  otherwise, to establish one or more series of Shares of the
                  Trust. The establishment of any such series shall be effective
                  upon the adoption by a majority of the Trustees then in office
                  of a resolution establishing such series and setting the
                  voting rights, preferences, designations, conversion or other
                  rights, restrictions, limitations as to distributions,
                  conditions of redemption, qualifications, or other terms of
                  the Shares of such series. The beneficial interest in each
                  series of the Trust shall at all times be divided into an
                  unlimited number of full and fractional transferable Shares
                  without par value. The investment objective, policies, and
                  restrictions governing the management and operations of each
                  series of the Trust, including the management of assets
                  belonging to any particular series, may from time to time be
                  changed or supplemented by the Trustees, subject to the
                  requirements of the Act. The Trustees may from time to time
                  divide or combine the outstanding Shares of any one or more
                  series of the Trust into a greater or lesser number without
                  thereby changing their proportionate beneficial interests in
                  the Trust assets allocated or belonging to such series.

                  Subject to the respective voting rights, preferences,
                  designations, conversion or other rights, restrictions,
                  limitations as to distributions, conditions of redemption,
                  qualifications, or other terms of the Shares of each series of
                  the Trust, the Trustees may, without Shareholder approval,
                  divide the Shares of any series into two or more classes,
                  Shares of each such class having such 



                                      -2-
<PAGE>   715


                  voting rights, preferences, designations, conversion or other
                  rights, restrictions, limitations as to distributions,
                  conditions of redemption, qualifications, or other terms
                  applicable to Shares of such class as the Trustees may
                  determine.

                  B. The holder of each Share shall be entitled to one vote for
                  each full Share, and a proportionate fractional vote for each
                  fractional Share, irrespective of the series or class, then
                  recorded in his name on the books of the Trust. On any matter
                  submitted to a vote of Shareholders, all Shares then issued
                  and outstanding and entitled to vote, irrespective of the
                  series or class, shall be voted in the aggregate and not by
                  series or class except: (1) as otherwise required by the Act;
                  or (2) when the matter, as conclusively determined by the
                  Trustees, affects only the interests of the Shareholders of a
                  particular series or class of the Trust (in which case only
                  Shareholders of the affected series or class shall be entitled
                  to vote thereon).

                  C. Shares of each series or class of the Trust shall have the
                  following preferences, participating or other special rights,
                  qualifications, restrictions and limitations:

                           (1) ASSETS BELONGING TO A SERIES OR CLASS. All
                           consideration received by the Trust for the issue or
                           sale of Shares of any series or class, together with
                           all assets in which such consideration is invested or
                           reinvested, including any proceeds derived from the
                           sale, exchange, or liquidation of such assets, and
                           any funds or payments derived from any reinvestment
                           of such proceeds in whatever form the same may be,
                           shall be referred to as "assets belonging to" that
                           series or class. In addition, any assets, income,
                           earnings, profits or proceeds thereof, or funds or
                           payments which are not readily identifiable as
                           belonging to a particular series or class shall be
                           allocated by the Trustees to one or more series or
                           class (such allocation to be conclusive and binding
                           upon the Shareholders of all series or class for all
                           purposes) in such manner as they, in their sole
                           discretion, deem fair and equitable, and shall also
                           be referred to as "assets belonging to" such series
                           or class. Such assets belonging to a particular
                           series or class shall irrevocably belong for all
                           purposes to the Shares of the series or class, and
                           shall be so handled upon the books of account of the
                           Trust. Such assets and the income, earnings, profits,
                           and proceeds thereof, including any proceeds derived
                           from the sale, exchange, or liquidation thereof, and
                           any funds or payments derived from any reinvestment
                           of such proceeds in whatever form, are herein
                           referred to as "assets belonging to" such a series or
                           class. Shareholders of any series or class shall have
                           no right, title or interest in or to the assets
                           belonging to any other series or class.

                           (2) LIABILITIES BELONGING TO A SERIES OR CLASS. The
                           assets belonging to any series or class of the Trust
                           shall be charged with the direct liabilities in
                           respect of such series or class and with all
                           expenses, costs, charges, and reserves attributable
                           to such series or class, and shall also 


                                      -3-
<PAGE>   716



                           be charged with the share of such series or class of
                           the general liabilities, expenses, costs, charges,
                           and reserves of the Trust which are not readily
                           identifiable as belonging to a particular series or
                           class in proportion to the relative net assets of the
                           respective series or class, as determined at such
                           time or times as may be authorized by the Trustees.
                           Any such determination by the Trustees shall be
                           conclusive and binding upon the Shareholders of all
                           series or class for all purposes; PROVIDED, HOWEVER,
                           that under no circumstances shall the assets
                           allocated or belonging to any series or class of the
                           Trust be charged with liabilities directly
                           attributable to any other series or class. The
                           liabilities so charged to a series or class are
                           herein referred to as "liabilities belonging to" such
                           series or class. All persons who may have extended
                           credit to a particular series or class or who have
                           contracts or claims with respect to a particular
                           series or class shall look only to the assets of that
                           particular series or class for payment of such
                           contracts or claims.

                           (3) LIQUIDATING DISTRIBUTIONS. In the event of the
                           termination of the Trust or a particular series or
                           class thereof and the winding up of its affairs, the
                           Shareholders of the Trust or such particular series
                           or class shall be entitled to receive out of the
                           assets of the Trust or belonging to the particular
                           series or class, as the case may be, available for
                           distribution to Shareholders, but other than general
                           assets not belonging to any particular series or
                           class of the Trust, the assets belonging to such
                           series or class; and the assets so distributable to
                           the Shareholders of any series or class shall be
                           distributed among such Shareholders in proportion to
                           the number of Shares of such series or class held by
                           them and recorded in their names on the books of the
                           Trust. In the event that there are any general assets
                           not belonging to any particular series or class of
                           the Trust available for distribution, such
                           distribution shall be made to the Shareholders of all
                           series or class subject to such termination and
                           winding up in proportion to the relative net assets
                           of the respective series or class determined as
                           hereinafter provided and the number of Shares of such
                           series or class held by them and recorded in their
                           names on the books of the Trust.

                           (4) DIVIDENDS AND DISTRIBUTIONS. Shares of each
                           series or class shall be entitled to such dividends
                           and distributions in Shares or in cash or both, as
                           may be declared from time to time by the Trustees,
                           acting in their sole discretion, with respect to such
                           series or class, PROVIDED, HOWEVER, that dividends
                           and distributions on Shares of a particular series or
                           class shall be paid only out of the lawfully
                           available "assets belonging to" such series or class
                           as such term is defined in this Declaration of Trust.

                  5.2 PURCHASE OF SHARES. The Trustees may accept investments in
                  each series or class of the Trust from such Persons for such
                  consideration and on such 



                                      -4-
<PAGE>   717


                  other terms as they may from time to time authorize. The Trust
                  may reject any order for, or refuse to give effect on the
                  books of the Trust to the transfer of, any Shares as permitted
                  under the Act. Each such investment shall be credited to the
                  Shareholder's account in the form of full and fractional
                  Shares of the appropriate series or class of the Trust, at the
                  net asset value per Share next computed after receipt of the
                  investment.

                  5.3 NET ASSET VALUE PER SHARE. The net asset value per Share
                  of each series or class of the Trust shall be computed at such
                  time or times as the Trustees may specify pursuant to the Act.
                  Assets shall be valued and net asset value per Share shall be
                  determined by such Person or Persons as the Trustees may
                  appoint under the supervision of the Trustees in such manner
                  not inconsistent with the Act and any orders of the Securities
                  and Exchange Commission received by the Trust, as the Trustees
                  may determine.

                  5.4 OWNERSHIP OF SHARES. The ownership of Shares shall be
                  recorded separately with respect to each series or class on
                  the record books of the Trust. Certificates for Shares shall
                  be issued to holders of such Shares only upon the
                  authorization of the Trustees, in their discretion, to issue
                  such Shares, and shall be issued, if at all, subject to such
                  rules and regulations as the Trustees may determine. The
                  Trustees may make such rules as they consider appropriate for
                  the transfer of Shares and similar matters. The record books
                  of the Trust shall be conclusive as to the identity of holders
                  of Shares and as to the number of Shares of each series or
                  class held by each Shareholder.

                  5.5 PREEMPTIVE RIGHTS. Shareholders shall have no preemptive
                  or other rights to subscribe to any additional Shares or other
                  securities issued by the Trust or by the Trustees.

                  5.6 REDEMPTION OF SHARES. To the extent of the assets of the
                  Trust legally available for such redemptions, a Shareholder of
                  any series or class of the Trust shall have the right, subject
                  to the provisions of Section 5.7 hereof, to require the Trust
                  to redeem his full and fractional Shares of any series or
                  class out of assets belonging to such series or class at a
                  redemption price equal to the net asset value per Share next
                  determined after receipt of a request to redeem in proper form
                  as determined by the Trustees. The Trustees shall establish
                  such rules and procedures as they deem appropriate for
                  redemption of Shares; PROVIDED, HOWEVER, that all redemptions
                  shall be in accordance with the Act. Without limiting the
                  generality of the foregoing, the Trust shall, to the extent
                  permitted by applicable law, have the right at any time to
                  redeem the Shares owned by any holder thereof (i) if the value
                  of such Shares in an account maintained by the Trust or its
                  transfer agent for any Shareholder with respect to any series
                  or class of the Trust is $1,000 or less; PROVIDED, HOWEVER,
                  that any such Shareholder shall be notified that the value of
                  his account is $1,000 or less, and shall be allowed sixty days
                  to make additional purchases of Shares of the appropriate
                  series or class so that the value of his account will exceed
                  $1,000 before any such involuntary redemption is processed by
                  the Trust; or (ii) if the net income with respect to any
                  particular series or class of 


                                      -5-
<PAGE>   718



                  the Trust should be negative or it should otherwise be
                  appropriate to carry out the Trust's responsibilities under
                  the Act, in each case subject to such further terms and
                  conditions as the Board of Trustees of the Trust may from time
                  to time adopt. The redemption price of Shares of any series or
                  class of the Trust shall, except as otherwise provided in this
                  section, be the net asset value thereof as determined by the
                  Board of Trustees of the Trust from time to time in accordance
                  with the provisions of applicable law, less such redemption
                  fee or other charge, if any, as may be fixed by resolution of
                  the Board of Trustees of the Trust. When the net income with
                  respect to any particular series or class of the Trust is
                  negative or whenever deemed appropriate by the Board of
                  Trustees of the Trust in order to carry out the Trust's
                  responsibilities under the Act, any series or class of the
                  Trust may, without payment of compensation but in
                  consideration of the interests of the Trust or a particular
                  series or class thereof and of the Shareholders of the Trust
                  or of such series or class in maintaining a constant net asset
                  value per Share with respect to such series or class, redeem
                  pro rata from each holder of record on such day such number of
                  full and fractional Shares of such series or class as may be
                  necessary to reduce the aggregate number of outstanding Shares
                  of such series or class in order to permit the net asset value
                  thereof to remain constant. Payment of the redemption price,
                  if any, shall be made in cash by the appropriate series or
                  class of the Trust at such time and in such manner as may be
                  determined from time to time by the Board of Trustees of the
                  Trust unless, in the opinion of the Board of Trustees, which
                  shall be conclusive and binding upon the Shareholders for all
                  purposes, conditions exist which make payment wholly in cash
                  unwise or undesirable; in such event the appropriate series or
                  class of the Trust may make payment in the assets belonging or
                  allocable to such series or class, the value of which shall be
                  determined as provided herein.

                  5.7 SUSPENSION OF RIGHT OF REDEMPTION. The Trustees may
                  suspend the right of redemption by Shareholders or postpone
                  the date of payment or the recordation of transfer of Shares
                  of any series or class, as permitted under the Act or
                  applicable law. Such suspension or postponement shall take
                  effect at such time as the Trustees shall specify but not
                  later than the close of business on the business day following
                  the declaration of suspension or postponement, and thereafter
                  there shall be no right of redemption or payment or transfer
                  until the Trustees shall declare the suspension at an end. In
                  case of suspension of the right of redemption, a Shareholder
                  may either withdraw his request for redemption or receive
                  payment based on the net asset value existing after the
                  termination of the suspension.

                  5.8 CONVERSION RIGHTS. The Trustees shall have the authority
                  to provide from time to time that the holders of Shares of any
                  series or class shall have the right to convert or exchange
                  said Shares for or into Shares of one or more other series or
                  class in accordance with such requirements and procedures as
                  may be established from time to time by the Trustees.



                                      -6-
<PAGE>   719


                  8.1 VOTING POWERS. The Shareholders shall have power to vote
                  (a) for the election or removal of Trustees; (b) with respect
                  to the amendment of this Declaration of Trust as provided in
                  Section 10.8 hereof; (c) with respect to the approval of
                  investment advisory and distribution agreements entered into
                  on behalf of the Trust or one or more series or class thereof,
                  and with respect to such other matters relating to the Trust
                  as may be required by law, by this Declaration of Trust, the
                  Regulations of the Trust, by any requirements applicable to or
                  agreement of the Trust, and as the Trustees may consider
                  desirable; and (d) to the same extent as the shareholders of a
                  Massachusetts business corporation, when considering whether a
                  court action, proceeding, or claim should or should not be
                  brought or maintained derivatively or as a class action on
                  behalf of the Trust or the Shareholders; PROVIDED, HOWEVER,
                  that no Shareholder of a particular series or class shall be
                  entitled to bring, or to vote in respect of, any class or
                  derivative action not on behalf of the series or class of the
                  Trust in respect of which the Shareholder owns Shares. Every
                  Shareholder of record shall have the right to one vote for
                  every whole Share (other than Shares held in the treasury of
                  the Trust) standing in his name on the books of the Trust, and
                  to have a proportional fractional vote for any fractional
                  Share, as to any matter on which the Shareholder is entitled
                  to vote. There shall be no cumulative voting. Shares may be
                  voted in person or by proxy. On any matter submitted to a vote
                  of the Shareholders, all Shares shall be voted in the
                  aggregate and not by individual series or class, except (i)
                  where required by the Act, Shares shall be voted by individual
                  series or class, and (ii) if the Trustees shall have
                  determined that a matter affects the interests only of one or
                  more series or class, then only the Shareholders of such
                  affected series or class shall be entitled to vote thereon.
                  Until Shares are issued, the Trustees may exercise all rights
                  of Shareholders and may take any action required or permitted
                  to be taken by Shareholders by law, this Declaration of Trust,
                  or the Regulations.

                  8.2 MEETINGS. Meetings of Shareholders may be called by the
                  Trustees as provided in the Regulations, and shall be called
                  by the Trustees upon the written request of Shareholders
                  owning at least twenty percent of the outstanding Shares
                  entitled to vote.

                  8.3 QUORUM AND REQUIRED VOTE. At any meeting of the
                  Shareholders, a quorum for the transaction of business shall
                  consist of a majority of the Shares of each series or class
                  outstanding and entitled to vote with respect to a matter
                  appearing in person or by proxy; PROVIDED, HOWEVER, that at
                  any meeting at which the only actions to be taken are actions
                  required by the Act to be taken by vote of all outstanding
                  Shares of all series or class entitled to vote thereon,
                  irrespective of series or class, a quorum shall consist of a
                  majority of Shares (without regard to series or class)
                  entitled to vote thereon, and that at any meeting at which the
                  only actions to be taken shall have been determined by the
                  Board of Trustees to affect the rights and interests of one or
                  more but not all series or classes of the Trust, a quorum
                  shall consist of a majority of the outstanding Shares of the
                  series or class so affected; and PROVIDED, FURTHER, that



                                      -7-
<PAGE>   720


                  reasonable adjournments of such meeting until a quorum is
                  obtained may be made by vote of the Shares present in person
                  or by proxy. A majority of the Shares voted shall decide any
                  question and a plurality shall elect a Trustee, subject to any
                  applicable requirements of law or of this Declaration of Trust
                  or the Regulations; PROVIDED, HOWEVER, that when any provision
                  of law or of this Declaration of Trust requires the holders of
                  Shares of any particular series or class to vote by series or
                  class and not in the aggregate with respect to a matter, then
                  the vote of the majority of the outstanding Shares of that
                  series or class shall decide such matter insofar as that
                  particular series or class shall be concerned.

                  8.4 SHAREHOLDER ACTION BY WRITTEN CONSENT. Any action which
                  may be taken by Shareholders may be taken without a meeting if
                  the holders of not less than two-thirds of the Shares entitled
                  to be voted with respect to the matter consent to the action
                  in writing and the written consent is filed with the records
                  of the meetings of Shareholders. Such consent shall be treated
                  for all purposes as a vote taken at a meeting of Shareholders.

                  8.5 CODE OF REGULATIONS. The Regulations may include further
                  provisions not inconsistent with this Declaration of Trust for
                  Shareholders' meetings, votes, record dates, notices of
                  meetings, and related matters.

                  9.4 LIMITATION OF SHAREHOLDER LIABILITY. Shareholders shall
                  not be subject to any personal liability in connection with
                  the assets of the Trust for the acts or obligations of the
                  Trust. The Trustees shall have no power to bind any
                  Shareholder personally or to call upon any Shareholder for the
                  payment of any sum of money or assessment whatsoever other
                  than such as the Shareholder may at any time personally agree
                  to pay by way of subscription to any Share or otherwise. Every
                  obligation, contract, instrument, certificate, Share, other
                  security or undertaking of the Trust, and every other act
                  whatsoever executed in connection with the Trust shall be
                  conclusively presumed to have been executed or done by the
                  executors thereof only in their capacities as Trustees under
                  this Declaration of Trust or in their capacity as officers,
                  employees, or agents of the Trust, and not individually. Every
                  note, bond, contract, order, or other undertaking issued by or
                  on behalf of the Trust or the Trustees relating to the Trust
                  or to any series or class of the Trust, and the stationery
                  used by the Trust, shall include a recitation limiting the
                  obligation represented thereby to the Trust and its assets
                  (but the omission of such a recitation shall not operate to
                  bind any Shareholder), as follows:

                           "The names `THE ONE(R) GROUP(SM)' and `Trustees of
                           THE ONE(R) GROUP(SM)' refer respectively to the Trust
                           created and the Trustees, as trustees but not
                           individually or personally, acting from time to time
                           under a Declaration of Trust dated May 23, 1985 to
                           which reference is hereby made and a copy of which is
                           on file at the office of the Secretary of the
                           Commonwealth of Massachusetts and elsewhere as
                           required by law, and to any and all amendments
                           thereto so filed or hereafter filed. The obligations
                           of `THE ONE(R) GROUP(SM)' entered 




                                      -8-
<PAGE>   721


                           into in the name or on behalf thereof by any of the
                           Trustees, representatives or agents are made not
                           individually, but in such capacities, and are not
                           binding upon any of the Trustees, Shareholders or
                           representatives of the Trust personally, but bind
                           only the assets of the Trust, and all persons dealing
                           with any series of Shares of the Trust must look
                           solely to the assets of the Trust belonging to such
                           series for the enforcement of any claims against the
                           Trust."

                  The rights accruing to a Shareholder under this Section 9.4
                  shall not exclude any other right to which such Shareholder
                  may be lawfully entitled, nor shall anything herein contained
                  restrict the right of the Trust to indemnify or reimburse a
                  Shareholder in any appropriate situation even though not
                  specifically provided for herein, PROVIDED, HOWEVER, that a
                  Shareholder of any series or class of the Trust shall be
                  indemnified only from assets belonging to that series or
                  class.

                  9.5 INDEMNIFICATION OF SHAREHOLDERS. In case any Shareholder
                  or former Shareholder shall be held to be personally liable
                  solely by reason of his being or having been a Shareholder and
                  not because of his acts or omissions or for some other reason,
                  the Shareholder or former Shareholder (or his heirs,
                  executors, administrators, or other legal representatives, or,
                  in the case of a corporation or other entity, its corporate or
                  other general successor) shall be entitled out of the Trust
                  estate to be held harmless from and indemnified against all
                  loss and expense arising from such liability. The Trust shall,
                  upon request by the Shareholder, assume the defense of any
                  claim made against any Shareholder for any act or obligations
                  of the Trust, and shall satisfy any judgment thereon.

                  9.6 LIABILITIES OF A SERIES OR CLASS. Liabilities belonging to
                  any series or class of the Trust, including, without
                  limitation, expenses, fees, charges, taxes, and liabilities
                  incurred or arising in connection with a particular series or
                  class, or in connection with the management thereof, shall be
                  paid only from the assets belonging to that series or class.

                  10.3 TERMINATION OF TRUST. This Trust shall continue without
                  limitation of time; PROVIDED, HOWEVER, that:

                  A. The Trustees, with the vote of a majority of the
                  outstanding Shares of any series or class of the Trust, may
                  sell and convey the assets belonging to such series or class
                  to another trust or corporation organized under the laws of
                  any state of the United States, which is a management
                  investment company as defined in the Act, for an adequate
                  consideration which may include the assumption of all
                  outstanding obligations, taxes, and other liabilities, accrued
                  or contingent, of the series or class and which may include
                  beneficial interests of such trust or stock of such
                  corporation. Upon making provision for the payment of all such
                  liabilities, by such assumption or otherwise, the Trustees
                  shall distribute the remaining proceeds ratably among the
                  holders of the Shares of the series or class then outstanding.



                                      -9-
<PAGE>   722



                  B. The Trustees, with the vote of a majority of the
                  outstanding Shares of any series or class of the Trust, may
                  sell and convert into money all the assets belonging to such
                  series or class. Upon making provision for the payment of all
                  outstanding obligations, taxes, and other liabilities, accrued
                  or contingent, of the series or class, the Trustees shall
                  distribute the remaining assets belonging to such series or
                  class ratably among the holders of the outstanding Shares of
                  the series or class.

                  C. Without the vote of a majority of outstanding Shares of any
                  series or class of the Trust (unless Shareholder approval is
                  otherwise required by applicable law), the Trustees may
                  combine the assets belonging to any two or more series or
                  classes into a single series or class if the Trustees
                  reasonably determine that such combination will not have a
                  material adverse effect on the Shareholders of each series or
                  class affected thereby.

                  D. After the effective date of the determination of the
                  Trustees under paragraph A or B above,

                           (1) The Trust shall carry on no business relating to
                           the assets of such series or class except for the
                           purpose of winding up the affairs of such series or
                           class.

                           (2) The Trustees shall proceed to wind up the affairs
                           of such series or class and all of the powers of the
                           Trustees under this Declaration of Trust shall
                           continue until the affairs of such series or class
                           shall have been wound up, including the power to
                           fulfill or discharge the contracts of the Trust
                           relating to such series or class, to collect assets
                           of such series or class, to sell, convey, assign,
                           exchange, transfer, or otherwise dispose of all or
                           any part of the remaining assets of such series or
                           class to one or more Persons at public or private
                           sale for consideration that may consist in whole or
                           in part of cash, securities, or other property of any
                           kind, to discharge or pay its liabilities, and to do
                           all other acts appropriate to liquidate the business
                           of such series or class.

                  Upon completion of the distribution of the remaining proceeds
                  or the remaining assets as provided in paragraphs A and B of
                  this section, the Trustees may authorize the termination of
                  that series or class of the Trust. Such termination shall be
                  effective upon filing with the State Secretary of the
                  Commonwealth of Massachusetts of an instrument setting forth
                  such termination, at which time the Trustees shall be
                  discharged of any and all further liabilities and duties
                  hereunder relating to such series or class and the right,
                  title and interest of all parties shall be cancelled and
                  discharged with respect to such series or class. Such
                  instrument shall constitute an amendment to this Declaration
                  of Trust when filed with the State Secretary of the
                  Commonwealth of Massachusetts as provided in this Title X.



                                      -10-
<PAGE>   723


                  10.8  AMENDMENT PROCEDURE.

                  A. This Declaration of Trust may be amended by the affirmative
                  vote of the holders of not less than a majority of the
                  outstanding Shares of each series affected thereby (as the
                  Trustees shall determine) or by any larger vote as may be
                  required by any provisions of applicable law.

                  B. Notwithstanding any other provisions hereof, until such
                  time as a Registration Statement under the Securities Act of
                  1933, as amended, covering the first public offering of
                  securities of the Trust shall have become effective, this
                  Declaration of Trust may be terminated or amended in any
                  respect by the affirmative vote of a majority of the Trustees.

                  C. The Trustees may also amend this Declaration without the
                  vote of Shareholders to cure any error or ambiguity or to
                  change the name of the Trust or, if they deem it necessary, to
                  conform this Declaration of Trust to the requirements of
                  applicable state or federal laws or regulations or the
                  requirements of the regulated investment company provisions of
                  the Internal Revenue Code, but the Trustees shall not be
                  liable for failing to do so.

         The following portions of Registrant's Code of Regulations incorporated
         as Exhibit (2) hereto, define the rights of shareholders:

                  1.1 PLACE. An Annual Meeting of Shareholders may be held for a
                  calendar year if called by the Trustees acting in their sole
                  discretion, and any such annual or Special Meetings of
                  Shareholders shall be held at such place, date, and time as
                  the Trustees may designate.

                  1.2 SPECIAL MEETING. Special Meetings of Shareholders may be
                  called by the Trustees, and shall be called by the Trustees
                  upon the written request of holders of at least twenty percent
                  of the outstanding units of beneficial interest in the Trust
                  ("Shares") entitled to vote.

                  1.3 NOTICE. Written notice, stating the place, day and hour of
                  each meeting of Shareholders and, in the case of Special
                  Meetings, the general nature of the business to be transacted,
                  shall be given by, or at the direction of, the person calling
                  the meeting to each Shareholder of record entitled to vote at
                  the meeting at least ten days prior to the day named for the
                  meeting, unless in a particular case a longer period of notice
                  is required by law.

                  1.4 SHAREHOLDER'S LIST. The officer or agent having charge of
                  the transfer books for shares of the Trust shall make, at
                  least five days before each meeting of Shareholders, a
                  complete list of the Shareholders entitled to vote at the
                  meeting, arranged in alphabetical order with the address of
                  and the number of Shares held by each such Shareholder. The
                  list shall be kept on file at the office of the Trust and
                  shall be subject to inspection by any Shareholders at any time
                  during usual business hours, and shall also be produced and
                  kept open at the time and place of each meeting of
                  Shareholders and shall be 



                                      -11-
<PAGE>   724


                  subject to the inspection of any Shareholder during each
                  meeting of Shareholders.

                  1.5 RECORD DATE. The Trustees may fix a time (during which
                  they may close the Share transfer books of the Trust) not more
                  than ninety (90) days prior to the date of any meeting of
                  Shareholders, or the date fixed for the payment of any
                  dividend, or the date of the allotment of rights or the date
                  when any change or conversion or exchange of Shares shall go
                  into effect, as a record date for the determination of the
                  Shareholders entitled to notice of, or to vote at, any such
                  meeting, or entitled to receive payment of any such dividend,
                  or to receive any such allotment of rights, or to exercise
                  such rights, as the case may be. In such case, only such
                  Shareholders as shall be shareholders of record at the close
                  of business on the date so fixed shall be entitled to notice
                  of, or to vote at, such meeting or to receive payment of such
                  dividend, or to receive such allotment of rights, or to
                  exercise such rights, as the case may be, notwithstanding any
                  transfer of any Shares on the books of the Trust after any
                  record date, as aforesaid.

                  3.1 FORM. Notices to Shareholders shall be in writing and
                  delivered personally or mailed to the Shareholders at their
                  addresses appearing on the books of the Trust.

                  3.2 WAIVER. Whenever any notice of the time, place, or purpose
                  of any meeting of Shareholders, Trustees, or committee is
                  required to be given under the provisions of Massachusetts law
                  or under the provisions of the Declaration of Trust or these
                  Regulations, a waiver thereof in writing, signed by the person
                  or persons entitled to such notice and filed with the record
                  of the meeting, whether before or after the holding thereof,
                  or actual attendance at the meeting of Shareholders in person
                  or by proxy, or at the meeting of Trustees or committee in
                  person, shall be deemed equivalent to the giving of such
                  notice to such persons.

         (5)(a)   Investment Advisory Agreement dated January 11, 1993 between
                  Registrant and Banc One Investment Advisors Corporation is
                  incorporated by reference to Exhibit 5(a) to Post-Effective
                  Amendment No. 27 (filed March 17, 1993) to Registrant's
                  Registration Statement on Form N-1A.

         (5)(b)   Amended and Restated Schedule A to the Investment Advisory
                  Agreement between Registrant and Banc One Investment Advisors
                  Corporation dated November 19, 1998 is filed herewith.

         (5)(c)   Sub-Investment Advisory Agreement dated October 1, 1996
                  between Banc One Investment Advisors Corporation and
                  Independence International Associates, Inc. is incorporated by
                  reference to Exhibit (5)(c) to Post-Effective Amendment No. 42
                  (filed June 18, 1997) to the Registrant's Registration
                  Statement on Form N-1A.


                                      -12-
<PAGE>   725



         (5)(d)   Sub-Investment Advisory Agreement, dated as of August 20, 1998
                  between Banc One Investment Advisors Corporation and Banc One
                  High Yield Partners, LLC is incorporated by reference to
                  Exhibit (5)(d) to Post-Effective Amendment No. 45 (filed
                  August 26, 1998) to Registrant's Registration Statement on
                  Form N-1A.

         (6)(a)   Re-executed Distribution Agreement dated December 13, 1995
                  between Registrant and The One Group Services Company is
                  incorporated by reference to Exhibit (7)(c) to Registrant's
                  Registration Statement on Form N-14 (filed January 19, 1996).

         (6)(b)   Revised Schedules A-E to the Distribution Agreement between
                  the Registrant and The One Group Services Company is filed
                  herewith.

         (6)(c)   Dealer's Agreement for Registrant dated November 11, 1995
                  between The One Group Services Company and Banc One Securities
                  Corporation is incorporated by reference to Exhibit (7)(d) to
                  Registrant's Registration Statement on Form N-14 (filed
                  January 19, 1996).

         (6)(d)   Form of Shareholder Servicing Agreement between the Registrant
                  and Participating Service Organizations is incorporated by
                  reference to Exhibit (7)(f) to Registrant's Registration
                  Statement on Form N-14 (filed on May 29, 1998).

         (6)(e)   Agency Services and Delegation Agreement between INVESCO Trust
                  Company and Registrant dated January 1, 1998 is incorporated
                  by reference to Exhibit (10)(j) to Registrant's Registration
                  Statement on Form N-14 (filed on May 29, 1998).

         (7)      Deferred Compensation Plan for Trustees of The One Group is
                  filed herewith.

         (8)(a)   Custodian Contract dated as of July 29, 1988 between
                  Registrant and State Street Bank and Trust Company is
                  incorporated by reference to Exhibit (8)(a) to Post Effective
                  Amendment No. 45 (filed August 26, 1998) to Registrant's
                  Registration Statement on Form N-1A.

         (8)(b)   Amendment to Custodian Contract dated as of July 29, 1988
                  between Registrant and State Street Bank and Trust Company is
                  incorporated by reference to Exhibit (8)(b) to Post Effective
                  Amendment No. 45 (filed August 26, 1998) to Registrant's
                  Registration Statement on Form N-1A.

         (8)(c)   Sub-Custodian Agreement between State Street Bank and Trust
                  Company, Bank One Trust Company, N.A. and the Registrant is
                  incorporated by reference to Exhibit (8)(b) to Post-Effective
                  Amendment No. 37 (filed June 13, 1996) to the Registrant's
                  Registration Statement on Form N-1A.

         (8)(d)   First Amendment to the Subcustodian Agreement dated as of
                  December, 1996 between State Street Bank and Trust Company,
                  Bank One Trust Company, 



                                      -13-
<PAGE>   726


                  N.A. and the Registrant is incorporated by reference to
                  Exhibit (8)(d) to Post Effective Amendment No. 45 (filed
                  August 26, 1998) to Registrant's Registration Statement on
                  Form N-1A.

         (8)(e)   International Securities Lending Subcustodian and Services
                  Agreement, dated December 29, 1997 between State Street Bank
                  and Trust Company, Bank One Trust Company, N.A. and the
                  Registrant is incorporated by reference to Exhibit (8)(c) to
                  Post-Effective Amendment No. 44 (filed June 5, 1998) to the
                  Registrant's Registration Statement on Form N-1A.

         (9)(a)   Re-executed Management and Administration Agreement dated
                  November 20, 1997 is incorporated by reference to Exhibit
                  (13)(b) to Registrant's Registration Statement on Form N-14
                  (filed on May 29, 1998).

         (9)(b)   Revised Schedule A to the Management and Administration
                  Agreement between the Registrant and The One Group Services
                  Company is filed herewith.

         (9)(c)   Transfer Agency and Service Agreement dated as of February 9,
                  1988 between the Registrant and State Street Bank and Trust
                  Company is incorporated by reference to Exhibit (9)(c) to Post
                  Effective Amendment No. 45 (filed August 26, 1998) to
                  Registrant's Registration Statement on Form N-1A.

         (9)(d)   Amendment to the Transfer Agency and Service Agreement dated
                  as of February 6, 1996 is incorporated by reference to Exhibit
                  (9)(d) to Post-Effective Amendment No. 45 (filed August 26,
                  1998) to the Registrant's Registration Statement on Form N-1A.

         (9)(e)   Fund Accounting Agreement dated December 1, 1995 between the
                  Registrant and The One Group Services Company is incorporated
                  by reference to Exhibit (13)(c) to Registrant's Registration
                  Statement on Form N-14 (filed January 19, 1996).

         (9)(f)   Revised Schedule A to the Fund Accounting Agreement between
                  the Registrant and The One Group Services Company is filed
                  herewith.

         (9)(g)   Sub-Administration Agreement dated December 1, 1995 between
                  The One Group Services Company and Banc One Investment
                  Advisors Corporation is incorporated by reference to Exhibit
                  (13)(d) to the Registrant's Registration Statement on Form
                  N-14 (filed January 19, 1996).

         (9)(h)   Revised Schedule A to the Sub-Administration Agreement between
                  The One Group Services Company and Banc One Investment
                  Advisors Corporation is filed herewith.

         (9)(i)   Agency Services and Delegation Agreement dated January 1, 1996
                  between the Registrant and BISYS Qualified Plan Services is
                  incorporated by reference 



                                      -14-
<PAGE>   727


                  to Exhibit (9)(g) to Post-Effective Amendment No. 37 (filed
                  June 13, 1996) to the Registrant's Registration Statement on
                  Form N-1A.

         (9)(j)   Form of Agency Services and Delegation Agreement between the
                  Registrant and Bank One Trust Company, NA is incorporated by
                  reference to Exhibit (9)(i) to Post-Effective Amendment No. 43
                  (filed August 29, 1997) to Registrant's Registration Statement
                  on Form N-1A.

         (9)(k)   Form of Order Processing Agreement between the Registrant and
                  Bank One Trust Company, NA is incorporated by reference to
                  Exhibit (9)(j) to Post-Effective Amendment No. 43 (filed
                  August 29, 1997) to Registrant's Registration Statement on
                  Form N-1A.

         (9)(l)   Shareholder Servicing Agreement is incorporated by reference
                  to Exhibit 9(h) to Post-Effective Amendment No. 37 (filed June
                  13, 1996) to the Registrant's Registration Statement on Form
                  N-1A.

         (9)(m)   Services Agreement dated as of June 6, 1997 between the
                  Registrant and Charles Schwab & Company, is incorporated by
                  reference to Exhibit (9)(l) to Post-Effective Amendment No. 44
                  (filed June 5, 1998) to Registrant's Registration Statement on
                  Form N-1A.

         (9)(n)   Operating Agreement dated as of June 6, 1997 between the
                  Registrant and Charles Schwab & Company, is incorporated by
                  reference to Exhibit (9)(m) to Post-Effective Amendment No. 44
                  (filed June 5, 1998) to Registrant's Registration Statement on
                  Form N-1A.

         (9)(o)   Retirement Services Order Processing Agreement dated as of
                  June 6, 1997 between the Registrant and Charles Schwab &
                  Company, is incorporated by reference to Exhibit (9)(n) to
                  Post-Effective Amendment No. 44 (filed June 5, 1998) to
                  Registrant's Registration Statement on Form N-1A.

         (9)(p)   Securities Lending Agreement for Non-ERISA Accounts dated as
                  of August 1995 between the Registrant, Banc One Investment
                  Advisors Corporation, and Bank One Trust Company, N.A. is
                  incorporated by reference to Exhibit (9)(p) to Post Effective
                  Amendment No. 45 (filed August 26, 1998) to Registrant's
                  Registration Statement on Form N-1A.

         (9)(q)   Amendment to Securities Lending Agreement for Non-ERISA
                  Accounts dated as of January 21, 1997 between the Registrant,
                  Banc One Investment Advisors Corporation, and Bank One Trust
                  Company, N.A. is incorporated by reference to Exhibit (9)(q)
                  to Post Effective Amendment No. 45 (filed August 26, 1998) to
                  Registrant's Registration Statement on Form N-1A.

         (9)(r)   Second Amendment to the Securities Lending Agreement (Domestic
                  Securities), effective May 21, 1998, between the Registrant,
                  Banc One Investment Advisors, and Bank One Trust Company, N.A.
                  is incorporated by 



                                      -15-
<PAGE>   728


                  reference to Exhibit (9)(r) to Post Effective Amendment No. 45
                  (filed August 26, 1998) to Registrant's Registration Statement
                  on Form N-1A.

         (9)(s)   Securities Lending Agreement for Non-ERISA Accounts dated as
                  of January 8, 1998 between the Registrant, Banc One Investment
                  Advisors, and Bank One Trust Company, N.A. is incorporated by
                  reference to Exhibit (9)(s) to Post Effective Amendment No. 45
                  (filed August 26, 1998) to Registrant's Registration Statement
                  on Form N-1A.

         (9)(t)   Amendment to the Securities Lending Agreement (Foreign
                  Securities) effective May 21, 1998 is incorporated by
                  reference to Exhibit (9)(t) to Post Effective Amendment No. 45
                  (filed August 26, 1998) to Registrant's Registration Statement
                  on Form N-1A.

         (10)     Opinion and consent of counsel is filed herewith.

         (11)(a)  Consent of PricewaterhouseCoopers LLP is filed herewith.

         (11)(b)  Consent of Ropes & Gray is filed herewith.

         (12)     None

         (13)     Purchase Agreement dated July 18, 1985, between Registrant and
                  Physicians Insurance Company of Ohio is incorporated by
                  reference to Exhibit (13) to Post Effective Amendment No. 45
                  (filed August 26, 1998) to Registrant's Registration Statement
                  on Form N-1A.

         (14)     None.

         (15)(a)  Re-Executed Distribution and Shareholder Services Plan - Class
                  A and Service Class shares dated November 1, 1995, as amended
                  August 20, 1997, between the Registrant and The One Group
                  Services Company is incorporated by reference to Exhibit
                  (15)(a) to Post-Effective Amendment No. 43 (filed August 29,
                  1997) to Registrant's Registration Statement on Form N-1A.

         (15)(b)  Distribution and Shareholder Services Plan - Class B and Class
                  C Shares dated January 1, 1994, as amended August 20, 1997,
                  between the Registrant and The One Group Services Company is
                  incorporated by reference to Exhibit (15)(b) to Post-Effective
                  Amendment No. 43 (filed August 29, 1997) to Registrant's
                  Registration Statement on Form N-1A.

         (16)     Schedules for Computation of Performance Calculations are
                  incorporated by reference to Exhibit (16) to Post-Effective
                  Amendment No. 43 (filed August 29, 1997) to Registrant's
                  Registration Statement on Form N-1A.

   
<TABLE>
<CAPTION>
         (17)     Financial Data schedules for:
<S>              <C>                                               <C>               <C>

         17.1     Prime Money Market (011)                          Class I           6/30/98  
         17.2     Prime Money Market (012)                          Class A           6/30/98  
         17.3     Prime Money Market (013)                          Class B           6/30/98  
         17.4     U.S. Treasury Securities Money Market (021)       Class I           6/30/98  
         17.5     U.S. Treasury Securities Money Market (022)       Class A           6/30/98  
         17.6     U.S. Treasury Securities Money Market (023)       Class B           6/30/98  
         17.7     U.S. Treasury Securities Money Market (024)       Class C           6/30/98  
         17.8     Municipal Money Market (031)                      Class I           6/30/98  
         17.9     Municipal Money Market (032)                      Class A           6/30/98  
         17.10    Income Equity (041)                               Class I           6/30/98  
         17.11    Income Equity (042)                               Class A           6/30/98  
         17.12    Income Equity (043)                               Class B           6/30/98  
         17.13    Income Equity (044)                               Class C           6/30/98  
         17.14    Income Bond (051)                                 Class I           6/30/98  
         17.15    Income Bond (052)                                 Class A           6/30/98  
         17.16    Income Bond (053)                                 Class B           6/30/98  
         17.17    Intermediate Tax-Free Bond (061)                  Class I           6/30/98  
         17.18    Intermediate Tax-Free Bond (062)                  Class A           6/30/98  
         17.19    Intermediate Tax-Free Bond (063)                  Class B           6/30/98  
         17.20    Disciplined Value (071)                           Class I           6/30/98  
         17.21    Disciplined Value (072)                           Class A           6/30/98  
         17.22    Disciplined Value (073)                           Class B           6/30/98  
         17.23    Growth Opportunities (081)                        Class I           6/30/98  
         17.24    Growth Opportunities (082)                        Class A           6/30/98  
         17.25    Growth Opportunities (083)                        Class B           6/30/98  
         17.26    Growth Opportunities (084)                        Class C           6/30/98  
         17.27    Limited Volatility (101)                          Class I           6/30/98  
         17.28    Limited Volatility (102)                          Class A           6/30/98  
         17.29    Limited Volatility (103)                          Class B           6/30/98  
         17.30    Equity Index (111)                                Class I           6/30/98  
         17.31    Equity Index (112)                                Class A           6/30/98  
         17.32    Equity Index (113)                                Class B           6/30/98  
         17.33    Equity Index (114)                                Class C           6/30/98  
         17.34    Large Company Value (121)                         Class I           6/30/98  
         17.35    Large Company Value (122)                         Class A           6/30/98  
         17.36    Large Company Value (123)                         Class B           6/30/98  
         17.37    Ohio Municipal Bond (131)                         Class I           6/30/98  
         17.38    Ohio Municipal Bond (132)                         Class A           6/30/98  
         17.39    Ohio Municipal Bond (133)                         Class B           6/30/98  
         17.40    International Equity Index (141)                  Class I           6/30/98  
         17.41    International Equity Index (142)                  Class A           6/30/98  
         17.42    International Equity Index (143)                  Class B           6/30/98  
         17.43    International Equity Index (144)                  Class C           6/30/98  
         17.44    Treasury Only Money Market (151)                  Class I           6/30/98  
         17.45    Government Money Market (161)                     Class I           6/30/98  
         17.46    Asset Allocation (171)                            Class I           6/30/98  
         17.47    Asset Allocation (172)                            Class A           6/30/98  
         17.48    Asset Allocation (173)                            Class B           6/30/98  
         17.49    Government Bond (181)                             Class I           6/30/98  
         17.50    Government Bond (182)                             Class A           6/30/98  
         17.51    Government Bond (183)                             Class B           6/30/98  
         17.52    Ultra Short-Term Income (191)                     Class I           6/30/98  
         17.53    Ultra Short-Term Income (192)                     Class A           6/30/98  
         17.54    Ultra Short-Term Income (193)                     Class B           6/30/98  
         17.55    Municipal Income (201)                            Class I           6/30/98  
         17.56    Municipal Income (202)                            Class A           6/30/98  
         17.57    Municipal Income (203)                            Class B           6/30/98  
         17.58    Municipal Income (204)                            Class C           6/30/98  
         17.59    Ohio Municipal Money Market (211)                 Class I           6/30/98  
         17.60    Ohio Municipal Money Market (212)                 Class A           6/30/98  
         17.61    Intermediate Bond (221)                           Class I           6/30/98  
         17.62    Intermediate Bond (222)                           Class A           6/30/98  
         17.63    Intermediate Bond (223)                           Class B           6/30/98  
         17.64    Intermediate Bond (224)                           Class C           6/30/98  
         17.65    Large Company Growth (231)                        Class I           6/30/98  
         17.66    Large Company Growth (232)                        Class A           6/30/98  
         17.67    Large Company Growth (233)                        Class B           6/30/98  
         17.68    Large Company Growth (234)                        Class C           6/30/98  
         17.69    Kentucky Municipal Bond (241)                     Class I           6/30/98  
         17.70    Kentucky Municipal Bond (242)                     Class A           6/30/98  
         17.71    Kentucky Municipal Bond (243)                     Class B           6/30/98  
         17.72    Louisiana Municipal Bond (251)                    Class I           6/30/98  
         17.73    Louisiana Municipal Bond (252)                    Class A           6/30/98  
         17.74    Louisiana Municipal Bond (253)                    Class B           6/30/98  
         17.75    Small Capitalization (261)                        Class I           6/30/98  
         17.76    Small Capitalization (262)                        Class A           6/30/98  
         17.77    Small Capitalization (263)                        Class B           6/30/98  
         17.78    Small Capitalization (264)                        Class C           6/30/98  
         17.79    Value Growth (271)                                Class I           6/30/98  
         17.80    Value Growth (272)                                Class A           6/30/98  
         17.81    Value Growth (273)                                Class B           6/30/98  
         17.82    Value Growth (274)                                Class C           6/30/98  
         17.83    West Virginia Municipal Bond (291)                Class I           6/30/98  
         17.84    West Virginia Municipal Bond (292)                Class A           6/30/98  
         17.85    West Virginia Municipal Bond (293)                Class B           6/30/98  
         17.86    Arizona Municipal Bond (301)                      Class I           6/30/98  
         17.87    Arizona Municipal Bond (302)                      Class A           6/30/98  
         17.88    Arizona Municipal Bond (303)                      Class B           6/30/98  
         17.89    Investor Growth (351)                             Class I           6/30/98  
         17.90    Investor Growth (352)                             Class A           6/30/98  
         17.91    Investor Growth (353)                             Class B           6/30/98  
         17.92    Investor Growth (354)                             Class C           6/30/98  
         17.93    Investor Growth & Income (361)                    Class I           6/30/98  
         17.94    Investor Growth & Income (362)                    Class A           6/30/98  
         17.95    Investor Growth & Income (363)                    Class B           6/30/98  
         17.96    Investor Growth & Income (364)                    Class C           6/30/98  
         17.97    Investor Conservative Growth (391)                Class I           6/30/98  
         17.98    Investor Conservative Growth (392)                Class A           6/30/98  
         17.99    Investor Conservative Growth (393)                Class B           6/30/98  
         17.100   Investor Conservative Growth (394)                Class C           6/30/98  
         17.101   Investor Balanced (401)                           Class I           6/30/98  
         17.102   Investor Balanced (402)                           Class A           6/30/98  
         17.103   Investor Balanced (403)                           Class B           6/30/98  
         17.104   Investor Balanced (404)                           Class C           6/30/98  
         17.105   Treasury & Agency (411)                           Class I           6/30/98  
         17.106   Treasury & Agency (412)                           Class A           6/30/98  
         17.107   Treasury & Agency (413)                           Class B           6/30/98  
</TABLE>
    

                                      -16-
<PAGE>   729


         (18)(a)  Multiple Class Plan for the Registrant adopted by the Board of
                  Trustees on May 22, 1995, as amended May 21, 1998 is
                  incorporated by reference to Exhibit (10)(k) to Registrant's
                  Registration Statement on Form N-14 (filed on May 29, 1998).

Item 25.  Persons Controlled by or under Common Control with Registrant
          -------------------------------------------------------------

As of the effective date of this Registration Statement there are no persons
controlled or under common control with the Registrant.

Item 26.  Number of Holders of Securities
          -------------------------------

No longer required by new Form N-1A.

Item 27 Indemnification.
        ----------------

                  Article IX, Section 9.2 of the Registrant's Declaration of
                  Trust, incorporated as Exhibit (1) hereto, provides for the
                  indemnification of Registrant's trustees and officers.
                  Indemnification of the Registrant's principal underwriter,
                  custodians, investment advisers, administrator, and transfer
                  agents is provided for in the Registrant's respective
                  Agreements with those service providers as filed or
                  incorporated by reference as Exhibits hereto. As of the
                  effective date of this Registration Statement, the Registrant
                  has obtained from a major insurance carrier a trustees and
                  officers' liability policy covering certain types of errors
                  and omissions. In no event will Registrant indemnify any of
                  its trustees, officers, employees, or agents against any
                  liability to which such person would otherwise be subject by
                  reason of his willful misfeasance, bad faith, or gross
                  negligence in the performance of his duties, or by reason of
                  his reckless disregard of the duties involved in the conduct
                  of his office or under his agreement with Registrant.
                  Registrant will comply with Rule 484 under the Securities Act
                  of 1933 and Release 11330 under the Investment Company Act of
                  1940 in connection with any indemnification.

                  Insofar as indemnification for liability arising under the
                  Securities Act of 1933 may be permitted to trustees, officers,
                  and controlling persons of Registrant pursuant to the
                  foregoing provisions, or otherwise, Registrant has been
                  advised that in the opinion of the Securities and Exchange
                  Commission such indemnification is against public policy as
                  expressed in the Act and is, therefore, unenforceable. In the
                  event that a claim for indemnification against such
                  liabilities (other than the payment by Registrant of expenses
                  incurred or paid by a trustee, officer or controlling person
                  of Registrant in the successful defense of any action, suit or
                  proceeding) is asserted by such trustee, officer, or
                  controlling person in connection with the securities being
                  registered, Registrant will, unless in the opinion of its
                  counsel the matter has been settled by controlling precedent,
                  submit to a court of appropriate jurisdiction the question of
                  whether such indemnification by it is against public policy as
                  expressed in the Act and will be governed by the final
                  adjudication of such issue.


                                      -17-
<PAGE>   730


Item 28.          Business and Other Connections of Investment Advisers
                  -----------------------------------------------------

   
                  Banc One Investment Advisors Corporation ("Banc One Investment
                  Advisors") performs investment advisory services for all of
                  the Funds of The One Group. Independence International
                  Associates, Inc. performs investment sub-advisory services for
                  the International Equity Index Fund. Banc One High Yield
                  Partners, LLC provides investment advisory services for the
                  High Yield Bond Fund.

                  Banc One Investment Advisors is an indirect wholly-owned
                  subsidiary of BANK ONE CORPORATION, a bank holding company
                  incorporated in the state of Delaware. BANK ONE CORPORATION
                  now operates affiliate banking organizations in Arizona,
                  Colorado, Illinois, Indiana, Kentucky, Louisiana, Michigan,
                  Ohio, Oklahoma, Texas, Utah, West Virginia and Wisconsin. In
                  addition, BANK ONE CORPORATION has several affiliates that
                  engage in data processing, venture capital, investment and
                  merchant banking, and other diversified services including
                  trust management, investment management, brokerage, equipment
                  leasing, mortgage banking, consumer finance, and insurance.
    

                  To the knowledge of Registrant, none of the directors or
                  officers of Banc One Investment Advisors, Independence
                  International Associates, Inc. or Banc One High Yield
                  Partners, LLC, except as set forth or incorporated herein, is
                  or has been, at any time during the past two calendar years,
                  engaged in any other business, profession, vocation or
                  employment of a substantial nature. Set forth below are the
                  names and principal businesses of the directors of Banc One
                  Investment Advisors who are engaged in any other business,
                  profession, vocation or employment of a substantial nature.

                          Banc One Investment Advisors
                          ----------------------------


<TABLE>
<CAPTION>
    Position with  Banc                     Other
    One Investment Advisors                 Substantial Occupation                       Type of Business
    -----------------------                 ----------------------                       ----------------

<S>                                        <C>                                           <C>
    David J. Kundert, Chairman and CEO     Chairman, Bank One                            Investment
                                           Trust Company, NA,
                                           100 East Broad
                                           Street, Columbus,
                                           Ohio 43215
</TABLE>


                                      -18-
<PAGE>   731


<TABLE>
<S>                                        <C>                                           <C>
    Frederick L. Cullen, Director          Chairman/CEO Bank One, NA, 100 East            Banking
                                           Broad Street, Columbus, Ohio 43215;
                                           Chairman and Chief Operating Officer,
                                           Banc One Ohio Corporation, 100 East
                                           Broad Street, Columbus, Ohio 43215


    Garrett Jamison, Director              President & Chief                              Banking
                                           Executive Officer, Bank
                                           One Trust Company, NA,
                                           100 East Broad Street,
                                           Road, Columbus, Ohio 43215


    Geoffrey von Kuhn, Director            Vice Chairman, Banc One                        Banking
                                           Capital Corporation, 150
                                           East Gay Street,
                                           Columbus, Ohio 43215

    David R. Meuse, Director               Chairman/CEO Banc One                          Investment
                                           Capital Holding
                                           Corporation, 150  East
                                           Gay Street, Columbus,
                                           Ohio 43215
</TABLE>




The principal business address of the principal executive officer and directors
of Banc One Investment Advisors is 1111 Polaris Parkway, P.O. Box 710211,
Columbus, Ohio 43271-0211.


Independence International Associates, Inc.
- -------------------------------------------

         Independence International Associates, Inc. ("IIA") is the
Sub-Investment Advisor to the International Equity Index Fund. IIA, a
corporation organized under the laws of Massachusetts, provides investment
advice to institutional and investment company clients. Information regarding
the firm's ownership and other business connections of the officers and
directors is listed on the Form ADV filed by IIA with the SEC pursuant to the



                                      -19-
<PAGE>   732


Investment Advisers Act of 1940 (SEC File No.801-28785), the text of which is
hereby incorporated by reference.

Banc One High Yield Partners, LLC
- ---------------------------------

         Banc One High Yield Partners, LLC is the Sub-Investment Advisor to the
High Yield Bond Fund ("Banc One Partners"). Banc One Partners, a limited
liability company organized under the laws of Ohio, provides investment advice
to the High Yield Bond Fund. Set forth below are the names and principal
businesses of the managers and investment officers of Banc One Partners who are
engaged in any other business, profession, vocation or employment of a
substantial nature.



<TABLE>
<CAPTION>
    Position with                          Other Substantial                   Type of
    Banc One Partners                       Occupation                         Business
    -----------------                       ----------                         --------

<S>                                        <C>                                 <C>
    James P. Shanahan, Manager             Pacholder Associates,               Investment
                                           Inc., Managing Director
                                           & General Counsel, 8044
                                           Montgomery Road, Suite
                                           #382, Cincinnati, Ohio
                                           45236

    William J. Morgan, Manager             Pacholder Associates,               Investment
                                           Inc., President, 8044
                                           Montgomery Road, Suite
                                           #382, Cincinnati, Ohio
                                           45236


    Mark A. Beeson, Manager                Banc One Investment                 Investment
                                           Advisors, Senior
                                           Managing Director, 1111
                                           Polaris Parkway,
                                           Columbus, Ohio 43271

     Gary Madich, Manager                  Banc One Investment                   Investment
                                           Advisors, Senior
                                           Managing Director, 1111
                                           Polaris Parkway,
                                           Columbus, Ohio 43271
</TABLE>



                                      -20-
<PAGE>   733


<TABLE>
<S>                                        <C>                                   <C>
    Ryan L. Langdon, Vice                  Pacholder                             Investment
    President -- Senior Analyst            Associates, Inc., Vice
                                           President, 8044
                                           Montgomery Road, Suite
                                           #382, Cincinnati, Ohio
                                           45236
   
    Anthony L. Longi, Jr., Vice
    President -- Portfolio Manager         Pacholder                             Investment
                                           Associates, Inc.,
                                           Executive Vice                        
                                           President, 8044
                                           Montgomery Road, Suite
                                           #382, Cincinnati, Ohio
                                           45236
    
</TABLE>



    Item 29.  Principal Underwriters
              ----------------------

           (a) The One Group Services Company acts as administrator and
           distributor for each of the Fund's Portfolios.

           (b) The directors and officers of The One Group Services Company are
           set forth below. The business address of each director or officer is
           3435 Stelzer Road, Columbus, Ohio 43219.



<TABLE>
<CAPTION>
                                          Positions and Offices
                                          With The One Group
    Name                                  Services Company                   Positions With Registrant
    ----                                  ----------------                   -------------------------

<S>                                       <C>                                <C>
   Lynn J. Mangum                         Chairman and Chief                 None
                                            Executive Officer

   Dennis Sheehan                         Director                           None

   Kevin J. Dell                          Vice President/Secretary/          None

   Michael D. Burns                       Vice President                     None

   Steven Ludwig                          Compliance Officer                 None

   Robert Tuch                            Assistant Secretary                None

   David P. Blackmore                     Vice President/                    None
                                            Chief Financial Officer
</TABLE>



                                      -21-
<PAGE>   734


<TABLE>
<S>                                       <C>                                <C>
   Mark S. Redman                         President                          President

   Mark J. Ryberczyk                      Senior Vice President              None

   William J. Tomko                       Senior Vice President              Treasurer
</TABLE>


   (c)         Not applicable.

   Item 30.             Location of Accounts and Records
                        --------------------------------

              (1)       Banc One Investment Advisors Corporation, 1111 Polaris
                        Parkway, P.O. Box 710211, Columbus, Ohio 43271-0211
                        (records relating to its functions as Investment Adviser
                        and Sub-Administrator).

              (2)       Independence International Associates, Inc., 75 State
                        Street, Boston, MA 02109 (records relating to its
                        functions as Sub-Investment Adviser to the International
                        Equity Index Fund).

              (3)       Banc One High Yield Partners, LLC, 1111 Polaris Parkway,
                        P.O. Box 710211, Columbus, Ohio 43271-0211 and 8044
                        Montgomery Road, Suite #382, Cincinnati, Ohio 45236
                        (records relating to its functions as Sub-Investment
                        Advisor to the High Yield Bond Fund).

              (4)       The One Group Services Company, 3435 Stelzer Road,
                        Columbus, OH 43219 (records relating to its functions as
                        Distributor for all Funds).

              (5)       The One Group Services Company, 3435 Stelzer Road,
                        Columbus, OH 43219 (records relating to its functions as
                        Administrator for all Funds).

              (6)       State Street Bank and Trust Company, 470 Atlantic
                        Avenue, Fifth Floor, Boston, MA 02205-9087 (records
                        relating to its functions as custodian and transfer
                        agent to all Funds).

              (7)       Ropes & Gray, One Franklin Square, 1301 K Street, N.W.,
                        Suite 800 East, Washington, D.C. 20005 (Declaration of
                        Trust, Code of Regulations, and Minute Books).

   Item 31.             Management Services
                        -------------------

                        N/A

   Item 32.             Undertakings
                        ------------

                        The Registrant undertakes to call a meeting of
                        Shareholders, at the request of at least 10% of the
                        Registrant's outstanding shares, for the purpose of
                        voting upon the question of removal of a trustee or
                        trustees and to assist in communications with other
                        shareholders as required by Section 16(c) of the
                        Investment Company Act of 1940.



                                      -22-
<PAGE>   735


                        The Registrant undertakes to furnish to each person to
                        whom a prospectus for a particular fund is delivered a
                        copy of the Registrant's latest annual report to
                        shareholders relating to that fund upon request and
                        without charge.





                                      -23-
<PAGE>   736




                                   SIGNATURES

   
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant has duly caused this Post-Effective
Amendment No. 47 to the Registration Statement to be signed on its behalf by the
undersigned, thereto duly authorized, in the City of Washington, D.C. on the
23rd of December, 1998. 
    

                                      The One Group(R) 
                                      (Registrant)

                               By: /s/  Mark S. Redman
                                   ------------------------
                               *Mark S. Redman

Pursuant to the requirements of the Securities Act of 1933, this Amendment to
the Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.

   
<TABLE>
<CAPTION>
Signature                                   Title                                                Date
- ---------                                   -----                                                ----

<S>                                         <C>                                         <C>
/s/ Mark S. Redman                          President                                   December 23, 1998
* Mark S. Redman

/s/ William J. Tomko                        Treasurer                                   December 23, 1998
- --------------------
*William J. Tomko

/s/ Peter C. Marshall                       Trustee                                     December 23, 1998
- ---------------------
*Peter C. Marshall

/s/  Charles I. Post                        Trustee                                     December 23, 1998
- --------------------
*Charles I. Post


/s/  Frederick W. Ruebeck                   Trustee                                     December 23, 1998
- -------------------------
*Frederick W. Ruebeck

/s/ Robert A Oden                           Trustee                                     December 23, 1998
- -----------------
*Robert A Oden

/s/ John F. Finn                            Trustee                                     December 23, 1998
- ----------------
*John F. Finn

*By:  /s/ Alan G. Priest
      ------------------
        Alan G. Priest
        Attorney-in-Fact, pursuant to powers of attorney filed herewith.
</TABLE>
    




                                      -24-
<PAGE>   737




                                POWER OF ATTORNEY
                                -----------------

         Peter C. Marshall, whose signature appears below, does hereby
constitute and appoint Martin E. Lybecker, Alan G. Priest, and Alyssa
Albertelli, each individually, his true and lawful attorneys and agents, with
power of substitution or resubstitution, to do any and all acts and things and
to execute any and all instruments which said attorneys and agents, each
individually, may deem necessary or advisable or which may be required to enable
The One Group(R) (the "Group"), to comply with the Investment Company Act of
1940, as amended, and the Securities Act of 1933, as amended ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof, in connection with the filing and effectiveness of any and all
instruments and/or documents pertaining to the federal registration of the
shares of the Group, including specifically, but without limiting the generality
of the foregoing, the power and authority to sign in the name and on behalf of
the undersigned as a director and/or officer of the Group any and all amendments
to the Group's Registration Statement as filed with the Securities and Exchange
Commission under said Acts, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, or either of them, shall do or cause to be
done by virtue thereof.


Dated:   May 21, 1998


                                               /s/ Peter C. Marshall
                                               ---------------------
                                               Peter C. Marshall



                                      -25-
<PAGE>   738



                                POWER OF ATTORNEY
                                -----------------

         Charles I. Post, whose signature appears below, does hereby constitute
and appoint Martin E. Lybecker, Alan G. Priest, and Alyssa Albertelli, each
individually, his true and lawful attorneys and agents, with power of
substitution or resubstitution, to do any and all acts and things and to execute
any and all instruments which said attorneys and agents, each individually, may
deem necessary or advisable or which may be required to enable The One Group(R)
(the "Group"), to comply with the Investment Company Act of 1940, as amended,
and the Securities Act of 1933, as amended ("Acts"), and any rules, regulations
or requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of any and all instruments and/or
documents pertaining to the federal registration of the shares of the Group,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a director and/or officer of the Group any and all amendments to the Group's
Registration Statement as filed with the Securities and Exchange Commission
under said Acts, and the undersigned does hereby ratify and confirm all that
said attorneys and agents, or either of them, shall do or cause to be done by
virtue thereof.


Dated:   May 21, 1998


                                                 /s/ Charles I. Post
                                                 -------------------
                                                 Charles I. Post




                                       2
<PAGE>   739

<PAGE>   740


                                POWER OF ATTORNEY
                                -----------------

         Frederick W. Ruebeck, whose signature appears below, does hereby
constitute and appoint Martin E. Lybecker, Alan G. Priest, and Alyssa
Albertelli, each individually, his true and lawful attorneys and agents, with
power of substitution or resubstitution, to do any and all acts and things and
to execute any and all instruments which said attorneys and agents, each
individually, may deem necessary or advisable or which may be required to enable
The One Group(R) (the "Group"), to comply with the Investment Company Act of
1940, as amended, and the Securities Act of 1933, as amended ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof, in connection with the filing and effectiveness of any and all
instruments and/or documents pertaining to the federal registration of the
shares of the Group, including specifically, but without limiting the generality
of the foregoing, the power and authority to sign in the name and on behalf of
the undersigned as a director and/or officer of the Group any and all amendments
to the Group's Registration Statement as filed with the Securities and Exchange
Commission under said Acts, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, or either of them, shall do or cause to be
done by virtue thereof.


Dated:   May 21, 1998


                                            /s/ Frederick W. Ruebeck
                                            ------------------------
                                            Frederick W. Ruebeck




                                       4
<PAGE>   741


                                POWER OF ATTORNEY
                                -----------------

         Robert A. Oden, Jr., whose signature appears below, does hereby
constitute and appoint Martin E. Lybecker, Alan G. Priest, and Alyssa
Albertelli, each individually, his true and lawful attorneys and agents, with
power of substitution or resubstitution, to do any and all acts and things and
to execute any and all instruments which said attorneys and agents, each
individually, may deem necessary or advisable or which may be required to enable
The One Group(R) (the "Group"), to comply with the Investment Company Act of
1940, as amended, and the Securities Act of 1933, as amended ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof, in connection with the filing and effectiveness of any and all
instruments and/or documents pertaining to the federal registration of the
shares of the Group, including specifically, but without limiting the generality
of the foregoing, the power and authority to sign in the name and on behalf of
the undersigned as a director and/or officer of the Group any and all amendments
to the Group's Registration Statement as filed with the Securities and Exchange
Commission under said Acts, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, or either of them, shall do or cause to be
done by virtue thereof.


Dated:   May 21, 1998


                                                 /s/ Robert A. Oden, Jr.
                                                 -----------------------
                                                 Robert A. Oden, Jr.




                                       5
<PAGE>   742



                                POWER OF ATTORNEY
                                -----------------

         John F. Finn, whose signature appears below, does hereby constitute and
appoint Martin E. Lybecker, Alan G. Priest, and Alyssa Albertelli, each
individually, his true and lawful attorneys and agents, with power of
substitution or resubstitution, to do any and all acts and things and to execute
any and all instruments which said attorneys and agents, each individually, may
deem necessary or advisable or which may be required to enable The One Group(R)
(the "Group"), to comply with the Investment Company Act of 1940, as amended,
and the Securities Act of 1933, as amended ("Acts"), and any rules, regulations
or requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of any and all instruments and/or
documents pertaining to the federal registration of the shares of the Group,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a director and/or officer of the Group any and all amendments to the Group's
Registration Statement as filed with the Securities and Exchange Commission
under said Acts, and the undersigned does hereby ratify and confirm all that
said attorneys and agents, or either of them, shall do or cause to be done by
virtue thereof.


Dated:   May 21, 1998


                                               /s/ John F. Finn
                                               ----------------
                                               John F. Finn




                                       6
<PAGE>   743



                                POWER OF ATTORNEY
                                -----------------

         Mark S. Redman, whose signature appears below, does hereby constitute
and appoint Martin E. Lybecker, Alan G. Priest, and Alyssa Albertelli, each
individually, his true and lawful attorneys and agents, with power of
substitution or resubstitution, to do any and all acts and things and to execute
any and all instruments which said attorneys and agents, each individually, may
deem necessary or advisable or which may be required to enable The One Group(R)
(the "Group"), to comply with the Investment Company Act of 1940, as amended,
and the Securities Act of 1933, as amended ("Acts"), and any rules, regulations
or requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of any and all instruments and/or
documents pertaining to the federal registration of the shares of the Group,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a director and/or officer of the Group any and all amendments to the Group's
Registration Statement as filed with the Securities and Exchange Commission
under said Acts, and the undersigned does hereby ratify and confirm all that
said attorneys and agents, or either of them, shall do or cause to be done by
virtue thereof.


Dated:   May 21, 1998


                                                     /s/ Mark S. Redman
                                                     ------------------
                                                     Mark S. Redman



                                       7
<PAGE>   744



                                POWER OF ATTORNEY
                                -----------------

         William J. Tomko, whose signature appears below, does hereby constitute
and appoint Martin E. Lybecker, Alan G. Priest, and Alyssa Albertelli, each
individually, his true and lawful attorneys and agents, with power of
substitution or resubstitution, to do any and all acts and things and to execute
any and all instruments which said attorneys and agents, each individually, may
deem necessary or advisable or which may be required to enable The One Group(R)
(the "Group"), to comply with the Investment Company Act of 1940, as amended,
and the Securities Act of 1933, as amended ("Acts"), and any rules, regulations
or requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of any and all instruments and/or
documents pertaining to the federal registration of the shares of the Group,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a director and/or officer of the Group any and all amendments to the Group's
Registration Statement as filed with the Securities and Exchange Commission
under said Acts, and the undersigned does hereby ratify and confirm all that
said attorneys and agents, or either of them, shall do or cause to be done by
virtue thereof.


Dated:   May 21, 1998


                                                   /s/ William J. Tomko
                                                   --------------------
                                                   William J. Tomko




                                       8
<PAGE>   745


   Exhibit No.             Description
   -----------             -----------

   (5)(b)                  Amended and Restated Schedule A to the Investment
                           Advisory Agreement between Registrant and Banc One
                           Investment Advisors Corporation dated November 19,
                           1998.

   (6)(b)                  Revised Schedules A-E to the Distribution Agreement
                           between the Registrant and The One Group Services
                           Company.

   (7)                     Deferred Compensation Plan for Trustees of The One
                           Group.

   (9)(b)                  Revised Schedule A to the Management and
                           Administration Agreement between the Registrant and
                           The One Group Services Company.

   (9)(f)                  Revised Schedule A to the Fund Accounting Agreement
                           between the Registrant and The One Group Services
                           Company.

   (9)(h)                  Revised Schedule A to the Sub-Administration
                           Agreement between The One Group Services Company and
                           Banc One Investment.

       10                  Opinion of Counsel

    11(a)                  Consent of PricewaterhouseCoopers LLP

    11(b)                  Consent of Ropes & Gray

       27                  Financial Data Schedules for:

<TABLE>
<CAPTION>
<S>              <C>                                               <C>               <C>
         27.1     Prime Money Market (011)                          Class I           6/30/98  
         27.2     Prime Money Market (012)                          Class A           6/30/98  
         27.3     Prime Money Market (013)                          Class B           6/30/98  
         27.4     U.S. Treasury Securities Money Market (021)       Class I           6/30/98  
         27.5     U.S. Treasury Securities Money Market (022)       Class A           6/30/98  
         27.6     U.S. Treasury Securities Money Market (023)       Class B           6/30/98  
         27.7     U.S. Treasury Securities Money Market (024)       Class C           6/30/98  
         27.8     Municipal Money Market (031)                      Class I           6/30/98  
         27.9     Municipal Money Market (032)                      Class A           6/30/98  
         27.10    Income Equity (041)                               Class I           6/30/98  
         27.11    Income Equity (042)                               Class A           6/30/98  
         27.12    Income Equity (043)                               Class B           6/30/98  
         27.13    Income Equity (044)                               Class C           6/30/98  
         27.14    Income Bond (051)                                 Class I           6/30/98  
         27.15    Income Bond (052)                                 Class A           6/30/98  
         27.16    Income Bond (053)                                 Class B           6/30/98  
         27.17    Intermediate Tax-Free Bond (061)                  Class I           6/30/98  
         27.18    Intermediate Tax-Free Bond (062)                  Class A           6/30/98  
         27.19    Intermediate Tax-Free Bond (063)                  Class B           6/30/98  
         27.20    Disciplined Value (071)                           Class I           6/30/98  
         27.21    Disciplined Value (072)                           Class A           6/30/98  
         27.22    Disciplined Value (073)                           Class B           6/30/98  
         27.23    Growth Opportunities (081)                        Class I           6/30/98  
         27.24    Growth Opportunities (082)                        Class A           6/30/98  
         27.25    Growth Opportunities (083)                        Class B           6/30/98  
         27.26    Growth Opportunities (084)                        Class C           6/30/98  
         27.27    Limited Volatility (101)                          Class I           6/30/98  
         27.28    Limited Volatility (102)                          Class A           6/30/98  
         27.29    Limited Volatility (103)                          Class B           6/30/98  
         27.30    Equity Index (111)                                Class I           6/30/98  
         27.31    Equity Index (112)                                Class A           6/30/98  
         27.32    Equity Index (113)                                Class B           6/30/98  
         27.33    Equity Index (114)                                Class C           6/30/98  
         27.34    Large Company Value (121)                         Class I           6/30/98  
         27.35    Large Company Value (122)                         Class A           6/30/98  
         27.36    Large Company Value (123)                         Class B           6/30/98  
         27.37    Ohio Municipal Bond (131)                         Class I           6/30/98  
         27.38    Ohio Municipal Bond (132)                         Class A           6/30/98  
         27.39    Ohio Municipal Bond (133)                         Class B           6/30/98  
         27.40    International Equity Index (141)                  Class I           6/30/98  
         27.41    International Equity Index (142)                  Class A           6/30/98  
         27.42    International Equity Index (143)                  Class B           6/30/98  
         27.43    International Equity Index (144)                  Class C           6/30/98  
         27.44    Treasury Only Money Market (151)                  Class I           6/30/98  
         27.45    Government Money Market (161)                     Class I           6/30/98  
         27.46    Asset Allocation (171)                            Class I           6/30/98  
         27.47    Asset Allocation (172)                            Class A           6/30/98  
         27.48    Asset Allocation (173)                            Class B           6/30/98  
         27.49    Government Bond (181)                             Class I           6/30/98  
         27.50    Government Bond (182)                             Class A           6/30/98  
         27.51    Government Bond (183)                             Class B           6/30/98  
         27.52    Ultra Short-Term Income (191)                     Class I           6/30/98  
         27.53    Ultra Short-Term Income (192)                     Class A           6/30/98  
         27.54    Ultra Short-Term Income (193)                     Class B           6/30/98  
         27.55    Municipal Income (201)                            Class I           6/30/98  
         27.56    Municipal Income (202)                            Class A           6/30/98  
         27.57    Municipal Income (203)                            Class B           6/30/98  
         27.58    Municipal Income (204)                            Class C           6/30/98  
         27.59    Ohio Municipal Money Market (211)                 Class I           6/30/98  
         27.60    Ohio Municipal Money Market (212)                 Class A           6/30/98  
         27.61    Intermediate Bond (221)                           Class I           6/30/98  
         27.62    Intermediate Bond (222)                           Class A           6/30/98  
         27.63    Intermediate Bond (223)                           Class B           6/30/98  
         27.64    Intermediate Bond (224)                           Class C           6/30/98  
         27.65    Large Company Growth (231)                        Class I           6/30/98  
         27.66    Large Company Growth (232)                        Class A           6/30/98  
         27.67    Large Company Growth (233)                        Class B           6/30/98  
         27.68    Large Company Growth (234)                        Class C           6/30/98  
         27.69    Kentucky Municipal Bond (241)                     Class I           6/30/98  
         27.70    Kentucky Municipal Bond (242)                     Class A           6/30/98  
         27.71    Kentucky Municipal Bond (243)                     Class B           6/30/98  
         27.72    Louisiana Municipal Bond (251)                    Class I           6/30/98  
         27.73    Louisiana Municipal Bond (252)                    Class A           6/30/98  
         27.74    Louisiana Municipal Bond (253)                    Class B           6/30/98  
         27.75    Small Capitalization (261)                        Class I           6/30/98  
         27.76    Small Capitalization (262)                        Class A           6/30/98  
         27.77    Small Capitalization (263)                        Class B           6/30/98  
         27.78    Small Capitalization (264)                        Class C           6/30/98  
         27.79    Value Growth (271)                                Class I           6/30/98  
         27.80    Value Growth (272)                                Class A           6/30/98  
         27.81    Value Growth (273)                                Class B           6/30/98  
         27.82    Value Growth (274)                                Class C           6/30/98  
         27.83    West Virginia Municipal Bond (291)                Class I           6/30/98  
         27.84    West Virginia Municipal Bond (292)                Class A           6/30/98  
         27.85    West Virginia Municipal Bond (293)                Class B           6/30/98  
         27.86    Arizona Municipal Bond (301)                      Class I           6/30/98  
         27.87    Arizona Municipal Bond (302)                      Class A           6/30/98  
         27.88    Arizona Municipal Bond (303)                      Class B           6/30/98  
         27.89    Investor Growth (351)                             Class I           6/30/98  
         27.90    Investor Growth (352)                             Class A           6/30/98  
         27.91    Investor Growth (353)                             Class B           6/30/98  
         27.92    Investor Growth (354)                             Class C           6/30/98  
         27.93    Investor Growth & Income (361)                    Class I           6/30/98  
         27.94    Investor Growth & Income (362)                    Class A           6/30/98  
         27.95    Investor Growth & Income (363)                    Class B           6/30/98  
         27.96    Investor Growth & Income (364)                    Class C           6/30/98  
         27.97    Investor Conservative Growth (391)                Class I           6/30/98  
         27.98    Investor Conservative Growth (392)                Class A           6/30/98  
         27.99    Investor Conservative Growth (393)                Class B           6/30/98  
         27.100   Investor Conservative Growth (394)                Class C           6/30/98  
         27.101   Investor Balanced (401)                           Class I           6/30/98  
         27.102   Investor Balanced (402)                           Class A           6/30/98  
         27.103   Investor Balanced (403)                           Class B           6/30/98  
         27.104   Investor Balanced (404)                           Class C           6/30/98  
         27.105   Treasury & Agency (411)                           Class I           6/30/98  
         27.106   Treasury & Agency (412)                           Class A           6/30/98  
         27.107   Treasury & Agency (413)                           Class B           6/30/98  
</TABLE>

                                       9

<PAGE>   1


                                  EXHIBIT 5(b)
           AMENDED AND RESTATED SCHEDULE A TO THE INVESTMENT ADVISORY
AGREEMENT BETWEEN REGISTRANT AND BANC ONE INVESTMENT ADVISORS DATED NOVEMBER 19,
                                      1998











                                       10
<PAGE>   2


                              Amended and Restated
                                   Schedule A
                                     to the
               Investment Advisory Agreement between The One Group
                  and Banc One Investment Advisors Corporation
                             dated November 19, 1998


Name of Fund                      Compensation
- ------------                      ------------

The Treasury Money Market         Annual rate of eight one-hundredths of one
Fund                              percent (.08%) of The Treasury Money
                                  Market Fund's average daily net assets.

The Treasury Only Money           Annual rate of eight one-hundredths of one
Market Fund                       percent (.08%) of The Treasury Only Money
                                  Market Fund's average daily net assets.

The Government Money Market       Annual rate of eight one-hundredths of one
Fund                              percent (.08%) of The Government Money
                                  Market Fund's average daily net assets.

The Tax Exempt Money Market       Annual rate of eight one-hundredths of one
Fund                              percent (.08%) of The Tax Exempt Money
                                  Market Fund's average daily net assets.

The Institutional Prime Money     Annual rate of ten one-hundredths of one
Market Fund                       percent (.10%) of The Institutional Prime
                                  Money Market Fund's average daily net
                                  assets.

The U.S. Treasury Securities      Annual rate of thirty-five one-hundredths
Money Market Fund                 of one percent (.35%) of The U.S. Treasury
                                  Securities Money Market Fund's  average daily
                                  net assets.

The Prime Money Market            Annual rate of thirty-five one-hundredths
Fund                              of one percent (.35%) of The Prime Money
                                  Market Fund's average daily net assets.

The Municipal Money Market        Annual rate of thirty-five one-hundredths
Fund                              of one percent (.35%) of The Municipal
                                  Money Market Fund's average daily net
                                  assets.



                                       11
<PAGE>   3


The Ohio Municipal Money          Annual rate of thirty one-hundredths of
Market Fund                       one percent (.30%) of The Ohio Municipal
                                  Money Market Fund's average daily net
                                  assets.

The Michigan Municipal Money      Annual rate of thirty five one-hundredths of
Market Fund                       one percent (.35%) of The Michigan Municipal
                                  Money Market Fund's average daily net
                                  assets.

The Cash Management Money         Annual rate of twenty one-hundredths of
Market Fund                       one percent (.20%) of The Cash Management
                                  Money Market Fund's average daily net
                                  assets.

The Treasury Cash Management      Annual rate of twenty one-hundredths of
Money Market Fund                 one percent (.20%) of The Treasury Cash 
                                  Management Money Market Fund's average daily 
                                  net assets.

The Treasury Prime Cash           Annual rate of twenty one-hundredths of
Management Money Market Fund      one percent (.20%) of The Treasury Prime Cash
                                  Management Money Market Fund's average daily
                                  net assets.

The U.S. Government Cash          Annual rate of twenty one-hundredths of
Management Money Market Fund      one percent (.20%) of The U.S. Government Cash
                                  Management Money Market Fund's average daily
                                  net assets.

The Municipal Cash Management     Annual rate of twenty one-hundredths of
Money Market Fund                 one percent (.20%) of The Municipal Cash
                                  Money Market Fund's average daily net
                                  assets.

The Balanced Fund                 Annual rate of sixty-five one-hundredths
                                  of one percent (.65%) of The Asset Allocation
                                  Fund's average daily net assets.

The Equity  Income Fund           Annual rate of seventy-four one-hundredths
                                  of one percent (.74%) of The Income Equity
                                  Fund's average daily net assets.



                                       12
<PAGE>   4


The Mid Cap Value                 Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Disciplined
                                  Value Fund's average daily net assets.

The Mid Cap Growth                Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Growth 
                                  Opportunities Fund's average daily net assets.

The International Equity          Annual rate of fifty-five one-hundredths
Index Fund                        of one percent (.55%) of The International
                                  Equity Index Fund's average daily net
                                  assets.

The Equity Index Fund             Annual rate of thirty one-hundredths of
                                  one percent (.30%) of The Equity Index
                                  Fund's average daily net assets.

The Large Cap Value               Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Large Company
                                  Value Fund's average daily net assets.

The Diversified Equity            Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Value Growth
                                  Fund's average daily net assets.

The Small Cap Growth              Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Small 
                                  Capitalization Fund's average daily net 
                                  assets.

The Large Cap Growth              Annual rate of  seventy-four one-hundredths
Fund                              of one percent (.74%) of The Large Company

                                  Growth Fund's average daily net assets.

The Diversified Mid Cap           Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Diversified
                                  Mid Cap Fund's average daily net assets.

The Small Cap Value               Annual rate of seventy-four one-hundredths
Fund                              of one percent (.74%) of The Small Cap
                                  Value Fund's average daily net assets.

The Diversified International     Annual rate of eighty one-hundredths
Fund                              of one percent (.80%) of The Diversified
                                  International Fund's average daily net
                                  assets.



                                       13
<PAGE>   5


The Market Expansion Index        Annual rate of thirty five one-hundredths
Fund                              of one percent (.35%) of The Small Cap
                                  Index Fund's average daily net assets.

The Income Bond Fund              Annual rate of sixty one-hundredths of one
                                  percent (.60%) of The Income Bond Fund's
                                  average daily net assets.

The Short-Term Bond               Annual rate of sixty one-hundredths of one
Fund                              percent (.60%) of The Limited Volatility
                                  Bond Fund's average daily net assets.

The Government Bond Fund          Annual rate of forty-five one-hundredths
                                  of one percent (.45%) of The Government
                                  Bond Fund's average daily net assets.

The Ultra Short-Term Bond         Annual rate of fifty-five one-hundredths
Fund                              of one percent (.55%) of The Ultra Short-Term
                                  Income Fund's average daily net assets.

The Treasury & Agency             Annual rate of forty one-hundredths of one
Fund                              percent (.40%) of the Treasury & Agency
                                  Fund's average daily net assets.

The High Yield Bond Fund          Annual rate of seventy-five one-hundredths of 
                                  one percent (.75%) of the High Yield Bond 
                                  Fund's average daily net assets.

The Intermediate Bond             Annual rate of sixty one-hundredths
Fund                              of one percent (.60%) of The Intermediate
                                  Bond Fund's average daily net assets.

The Bond Fund                     Annual rate of sixty one-hundredths of one 
                                  percent (.60%) of the Bond Fund's average 
                                  daily net assets.

The Intermediate Tax-Free         Annual rate of sixty one-hundredths of one
Bond Fund                         percent (.60%) of The Intermediate Tax-
                                  Free Bond Fund's average daily net assets.

The Ohio Municipal Bond           Annual rate of sixty one-hundredths of one
Fund                              percent (.60%) of The Ohio Municipal Bond
                                  Fund's average daily net assets.



                                       14
<PAGE>   6


The Municipal Income Fund         Annual rate of forty-five one-hundredths
                                  of one percent (.45%) of The Municipal Income
                                  Bond Fund's average daily net assets.

The Texas Municipal Bond          Annual rate of forty-five one-hundredths
Fund                              of one percent (.45%) of The Texas Tax-
                                  Free Bond Fund's average daily net assets.

The West Virginia Municipal       Annual rate of forty-five one-hundredths
Bond Fund                         of one percent (.45%) of The West Virginia
                                  Tax-Free Bond Fund's average daily
                                  net assets.

The Kentucky Municipal Bond       Annual rate of forty-five one-hundredths
Fund                              of one percent (.45%) of The Kentucky 
                                  Municipal Bond Fund's average daily net 
                                  assets.

The Louisiana Municipal Bond      Annual rate of sixty one-hundredths
Fund                              of one percent (.60%) of The Louisiana 
                                  Municipal Bond Fund's average daily net 
                                  assets.

The Arizona Municipal Bond        Annual rate of forty-five one-hundredths
Fund                              of one percent (.45%) of The Arizona Municipal
                                  Bond Fund's average daily net assets.

The Tax Free Bond                 Annual rate of forty-five one-hundredths
Fund                              of one percent (.45%) of The Tax-Free
                                  Bond Fund's average daily net assets.

The Michigan Municipal Bond       Annual rate of forty-five one-hundredths
Fund                              of one percent (.45%) of The Michigan 
                                  Municipal Bond Fund's average daily net 
                                  assets.

The Short Term Municipal Bond     Annual rate of sixty one-hundredths
Fund                              of one percent (.60%) of The Short-Term 
                                  Municipal Bond Fund's average daily net 
                                  assets.

Investor Aggressive Growth        Annual rate of five one-hundredths of one 
Fund                              percent (.05%) of The Investor Aggressive 
                                  Growth Fund's average daily net assets.

Investor Conservative Growth      Annual rate of five one-hundredths of one 
Fund                              percent (.05%) of The Investor Conservative 
                                  Growth Fund's average daily net assets.


                                       15
<PAGE>   7



Investor Growth & Income          Annual rate of five one-hundredths of one 
Fund                              percent (.05%) of The Investor Growth & Income
                                  Fund's average daily net assets.

Investor Growth Fund              Annual rate of five one-hundredths of one 
                                  percent (.05%) of The Investor Growth Fund's 
                                  average daily net assets.

Investor Balanced                 Annual rate of five one-hundredths of one 
Fund                              percent (.05%) of the Investor Balanced Fund's
                                  average daily net assets.

Investor Fixed Income             Annual rate of five one-hundredths of one 
Fund                              percent (.05%) of The Investor Fixed Income 
                                  Fund's average daily net assets.


                           THE ONE GROUP
                           (formerly The Helmsman Fund)

                           By:  /s/Mark S. Redman
                              ---------------------------------------
                           Dated:   November 23, 1998
                                  -----------------------------------

                           BANC ONE INVESTMENT ADVISORS
                           CORPORATION


                           By:  /s/Mark A. Beeson
                              -------------------
                           Dated: November 23, 1998
                                  ------------------



                                       16

<PAGE>   1



                                 EXHIBIT (6)(b)
         REVISED SCHEDULES A-E TO THE DISTRIBUTION AGREEMENT BETWEEN THE
                 REGISTRANT AND THE ONE GROUP SERVICES COMPANY.



















                                       17
<PAGE>   2


                                   SCHEDULE A
                          TO THE DISTRIBUTION AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY


NAME OF THE FUND
- ----------------

MONEY MARKET FUNDS
- ------------------
U.S. Treasury Securities Money Market Fund
Prime Money Market Fund
Municipal Money Market Fund (formerly Tax-Free Money Market Portfolio)
Ohio Municipal Money Market Fund
Michigan Municipal Money Market Fund Cash Management Money Market Fund
Institutional Prime Money Market Fund
Treasury Money Market Fund
Treasury Only Money Market Fund
Treasury Cash Management Money Market Fund
Treasury Prime Cash Management Money Market Fund
U.S. Government Cash Management Money Market Fund
Municipal Cash Management Money Market Fund
Government Money Market Fund
Tax Exempt Money Market Fund

EQUITY FUNDS
- ------------
Equity Income Fund
Mid Cap Value Fund
Mid Cap GrowthFund
International Equity Index Fund
Large Cap Value Fund
Equity Index Fund
Balanced Fund
Large Cap Growth Fund
Diversified Equity Fund
Small Cap Growth Fund
Diversified Mid Cap Fund
Small Cap Value Fund
Diversified International Fund
Market Expansion Index Fund
Investor Aggressive Growth Fund
Investor Growth Fund
Investor Growth and Income Fund
Investor Balanced Fund
Investor Conservative Growth Fund

Fixed Income Funds
- ------------------
Income Bond Fund (formerly Income Portfolio)
Short-Term Bond Bond Fund
Intermediate Tax-Free Bond Fund
Ohio Municipal Bond Fund
Government Bond Fund
Ultra Short-Term Bond Fund




                                       18
<PAGE>   3


Treasury & Agency Fund
High Yield Bond Fund
Bond Fund
Municipal Income Fund (formerly Tax Free Bond Fund)
Texas Municipal Fund
West Virginia Municipal Bond Fund
Kentucky Municipal Bond Fund
Intermediate Bond Fund
Arizona Municipal Bond Fund
Louisiana Municipal Bond Fund
Michigan Municipal Bond Fund
Short-Term Municipal Bond Fund
Tax-Free Bond Fund
Investor Fixed Income Fund


THE ONE GROUP(R)                                 THE ONE GROUP SERVICES COMPANY


By:  /s/William J. Tomko                         By: /s/Mark S. Redman
     ---------------------                           -----------------

Date:  November 23, 1998                         Date: November 23, 1998
       -----------------------                         -----------------




                                       19
<PAGE>   4



                                   SCHEDULE B
                          TO THE DISTRIBUTION AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY

NAME OF THE FUND
- ----------------

EQUITY FUNDS
- ------------
Equity Income Fund
Mid Cap Value Fund
Mid Cap GrowthFund
International Equity Index Fund
Equity Index Fund
Large Cap Value Fund
Balanced Fund
Large Cap Growth Fund
Diversified Equity Fund
Small Cap Growth Fund
Diversified Mid Cap Fund
Small Cap Value Fund
Diversified International Fund
Market Expansion Index Fund
Investor Aggressive Growth Fund
Investor Growth Fund
Investor Growth and Income Fund
Investor Balanced Fund
Investor Conservative Growth Fund

FIXED INCOME FUNDS
- ------------------
Income Bond Fund (formerly Income Portfolio)
Short-Term Bond Bond Fund
Intermediate Tax-Free Bond Fund
Ohio Municipal Bond Fund
Government Bond Fund
Ultra Short-Term Bond Fund
High Yield Bond Fund
Bond Fund
Investor Fixed Income Fund
Treasury & Agency Fund
Municipal Income Fund (formerly Tax Free Bond Fund)
Texas Municipal Bond Fund
West Virginia Municipal Bond Fund
Kentucky Municipal Bond Fund
Intermediate Bond Fund




                                       1
<PAGE>   5


Arizona Municipal Bond Fund
Louisiana Municipal Bond Fund
Michigan Municipal Bond Fund
Short-Term Municipal Bond Fund
Tax-Free Bond Fund





THE ONE GROUP(R)                             ONE GROUP SERVICES COMPANY

By: /s/William J. Tomko                      By:  /s/Mark S. Redman
    -------------------                           -----------------

Title:  Treasurer                            Title:  President
        ---------------                              --------------






                                       2
<PAGE>   6





                                   SCHEDULE C
                          TO THE DISTRIBUTION AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY

                            DISTRIBUTION PLAN SHARES
                            ------------------------

NAME OF THE FUND
- ----------------

MONEY MARKET FUNDS
- ------------------
U.S. Treasury Securities Money Market Fund -- Service Class Shares
U.S. Treasury Securities Money Market Fund -- Class A Shares
Prime Money Market Fund -- Class A Shares
Prime Money Market Fund -- Service Class Shares
Municipal Money Market Fund (formerly Tax-Free Money Market Portfolio) -- Class 
A Shares
Municipal Money Market Fund (formerly Tax-Free Money Market Portfolio) -- 
Service Class Shares
Ohio Municipal Money Market Fund -- Class A Shares
Ohio Municipal Money Market Fund -- Service Class Shares
Michigan Municipal Money Market Fund -- Class A Shares
Michigan Municipal Money Market Fund -- Service Class Shares
Cash Management Money Market Fund -- Class A Shares
Treasury Cash Management Money Market Fund -- Class A Shares
Treasury Prime Cash Management Money Market Fund -- Class A Shares
U.S. Government Cash Management Money Market Fund -- Class A Shares
Municipal Cash Management Money Market Fund -- Class A Shares

EQUITY FUNDS
- ------------
Equity Income Fund -- Class A Shares
Mid Cap Value Fund -- Class A Shares
Mid Cap GrowthFund -- Class A Shares
International Equity Index Fund -- Class A Shares
Large Cap Value Fund -- Class A Shares
Equity Index Fund -- Class A Shares
Balanced Fund -- Class A Shares
Large Cap Growth Fund -- Class A Shares
Diversified Equity Fund -- Class A Shares
Small Cap Growth Fund  -- Class A Shares
Diversified Mid Cap Fund  -- Class A Shares
Small Cap Value Fund  -- Class A Shares
Diversified International Fund  -- Class A Shares
Market Expansion Index Fund  -- Class A Shares
Investor Aggressive Growth Fund -- Class A Shares
Investor Growth Fund -- Class A Shares
Investor Growth and Income Fund -- Class A Shares
Investor Balanced Fund -- Class A Shares
Investor Conservative Growth Fund -- Class A Shares


                                       3
<PAGE>   7


FIXED INCOME FUNDS
- ------------------
Income Bond Fund (formerly Income Portfolio) -- Class A Shares
Short-Term Bond Bond Fund -- Class A Shares
Government Bond Fund -- Class A Shares
Ultra Short-Term Bond Fund -- Class A Shares
Treasury & Agency Fund -- Class A Shares
High Yield Bond Fund  -- Class A Shares
Bond Fund  -- Class A Shares
Intermediate Tax-Free Bond Fund -- Class A Shares
Ohio Municipal Bond Fund -- Class A Shares
Intermediate Bond Fund -- Class A Shares
Arizona Municipal Bond Fund -- Class A Shares
Louisiana Municipal Bond Fund -- Class A Shares
Michigan Municipal Bond Fund  -- Class A Shares
Short-Term Municipal Bond Fund  -- Class A Shares
Tax-Free Bond Fund  -- Class A Shares
Municipal Income Fund (formerly Tax Free Bond Fund) -- Class A Shares
Texas Municipal Bond Fund -- Class A Shares
West Virginia Municipal Bond Fund -- Class A Shares
Kentucky Municipal Bond Fund
Investor Fixed Income Fund -- Class A Shares


THE ONE GROUP(R)                              THE ONE GROUP SERVICES COMPANY


By: /s/William J. Tomko                       By: /s/Mark S. Redman
   -------------------------                      --------------------------
Date:   November 23, 1998                     Date:  November 23, 1998
        -----------------                            -----------------




                                       2
<PAGE>   8


                                   SCHEDULE D
                          TO THE DISTRIBUTION AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY

                                  CDSC CLASSES
                                  ------------

NAME OF THE FUND
- ----------------

MONEY MARKET FUNDS
- ------------------
U.S. Treasury Securities Money Market Fund -- Class B Shares
Prime Money Market Fund -- Class B Shares

Equity Funds
- ------------
Equity Income Fund -- Class B Shares
Mid Cap Value Fund -- Class B Shares
Mid Cap Growth Fund -- Class B Shares
International Equity Index Fund -- Class B Shares
Large Cap Value Fund -- Class B Shares
Equity Index Fund -- Class B Shares
Balanced Fund-- Class B Shares
Large Cap Growth Fund -- Class B Shares
Diversified Equity Fund -- Class B Shares
Small Cap Growth Fund  -- Class B Shares
Diversified Mid Cap Fund  -- Class B Shares
Small Cap Value Fund  -- Class B Shares
Diversified International Fund  -- Class B Shares
Market Expansion Index Fund  -- Class B Shares
Investor Aggressive Growth Fund -- Class B Shares
Investor Growth Fund -- Class B Shares
Investor Growth and Income Fund -- Class B Shares
Investor Balanced Fund -- Class B Shares
Investor Conservative Growth Fund -- Class B Shares

Fixed Income Funds
- ------------------
Income Bond Fund (formerly Income Portfolio) -- Class B Shares
Short-Term Bond Bond Fund -- Class B Shares
Treasury & Agency Fund -- Class B Shares
Government Bond Fund -- Class B Shares
Ultra Short-Term Bond Fund -- Class B Shares
Intermediate Bond Fund -- Class B Shares
High Yield Bond Fund  -- Class B Shares
Bond Fund  -- Class B Shares
Intermediate Tax-Free Bond Fund -- Class B Shares
Ohio Municipal Bond Fund -- Class B Shares
Michigan Municipal Bond Fund  -- Class B Shares
Short-Term Municipal Bond Fund  -- Class B Shares
Tax-Free Bond Fund  -- Class B Shares
Municipal Income Fund -- Class B Shares
Texas Municipal Bond Fund -- Class B Shares
West Virginia Municipal Bond Fund -- Class B Shares



                                       2
<PAGE>   9



Kentucky Municipal Bond Fund -- Class B Shares
Arizona Municipal Bond Fund -- Class B Shares
Louisiana Municipal Bond Fund -- Class B Shares
Investor Fixed Income Fund -- Class B Shares



THE ONE GROUP(R)                              THE ONE GROUP SERVICES COMPANY


By:   /s/William J. Tomko                     By:   /s/Mark S. Redman
      -------------------                           -----------------

Date:  November 23, 1998                      Date: November 23, 1998
       --------------------                         -----------------



                                       3

<PAGE>   10



                                   SCHEDULE E
                          TO THE DISTRIBUTION AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY

                                  CDSC CLASSES
                                  ------------

NAME OF THE FUND
- ----------------

EQUITY FUNDS
- ------------

Income Equity Fund - Class C Shares
Disciplined Value Fund - Class C Shares
Growth Opportunities Fund - Class C Shares
Equity Index Fund - Class C Shares
Large Company Value Fund - Class C Shares
Asset Allocation Fund - Class C Shares
International Equity Index Fund - Class C Shares
Large Company Growth Fund - Class C Shares
Value Growth Fund - Class C Shares
Small Cap Growth Fund - Class C Shares
Diversified Mid Cap Fund  -- Class C Shares
Small Cap Value Fund  -- Class C Shares
Diversified International Fund  -- Class C Shares
Market Expansion Index Fund -- Class C Shares
Investor Aggressive Growth Fund -- Class C Shares
Investor Growth Fund -- Class C Shares
Investor Growth & Income Fund -- Class C Shares
Investor Balanced Fund -- Class C Shares
Investor Conservative Growth Fund -- Class C Shares

Fixed Income Funds
- ------------------
Income Bond Fund (formerly Income Portfolio) -- Class C Shares
Limited Volatility Bond Fund -- Class C Shares
Government Bond Fund -- Class C Shares
Ultra Short-Term Income Fund (formerly Government ARM Fund) -- Class C Shares
Treasury & Agency Fund -- Class C Shares
High Yield Bond Fund  -- Class C Shares
Bond Fund  -- Class C Shares
Intermediate Tax-Free Bond Fund -- Class C Shares
Ohio Municipal Bond Fund -- Class C Shares
Intermediate Bond Fund -- Class C Shares
Arizona Municipal Bond Fund -- Class C Shares
Louisiana Municipal Bond Fund -- Class C Shares
Michigan Municipal Bond Fund  -- Class C Shares
Short-Term Municipal Bond Fund  -- Class C Shares
Municipal Bond Fund  -- Class C Shares
Municipal Income Fund (formerly Tax Free Bond Fund) -- Class C Shares
Texas Municipal Bond Fund -- Class C Shares
West Virginia Municipal Bond Fund -- Class C Shares


                                       4
<PAGE>   11



Kentucky Municipal Bond Fund
Investor Fixed Income Fund -- Class C Shares



Money Market Funds
- ------------------
Prime Money Market Fund - Class C Shares
U.S. Treasury Securities Money Market Fund - Class C Shares
Municipal Money Market Fund - Class C Shares
Ohio Municipal Money Market Fund - Class C Shares
Michigan Municipal Money Market Fund - Class C Shares




THE ONE GROUP(R)                           THE ONE GROUP SERVICES COMPANY


By:    /s/ William J. Tomko                By:  /s/Mark S. Redman
    --------------------------                ----------------------

Date: November 23, 1998                    Date:   November 23, 1998
      ------------------------                     -----------------



                                       5

<PAGE>   1





                                    EXHIBIT 7
                         DEFERRED COMPENSATION PLAN FOR
                            TRUSTEES OF THE ONE GROUP





<PAGE>   2


                         DEFERRED COMPENSATION PLAN FOR
                            TRUSTEES OF THE ONE GROUP

         This Deferred Compensation Plan for Trustees ("Plan") is designed to
permit members of the Board of Trustees of The One Group (the "Trust") to elect
to defer the receipt of all or a portion of the compensation earned by them as
such trustees in lieu of receiving payment of such compensation currently, and
to give the Trustees a pecuniary interest in the investment performance of the
Trust.

1. ELIGIBILITY. Any member of the Board of Trustees (the "Board") of the Trust
(each a "Trustee") shall be Eligible to participate in the Plan, if he or she so
elects.

2. AMOUNT OF DEFERRAL. A Trustee participating in the Plan (a "Participating
Trustee") may defer receipt of all or a specified portion of the compensation
(including fees for attending meetings) earned by such trustee for serving as a
member of the Board, or as a member of any committee of the Board of which such
trustee from time to time may be a member. Reimbursement of expenses associated
with attending meetings of the Board or committees of the Board may not be
deferred.

3. DEFERRED COMPENSATION ACCOUNT. A book entry deferred compensation account
(the "Account") shall be established in the name of each Participating Trustee.
Under the Plan, any compensation earned by a Participating Trustee will be
credited to his or her Account on the first business day after the date such
compensation otherwise would have been payable to such Participating Trustee.

4. DEFERRED COMPENSATION ACCOUNT INVESTMENT.

         (a) Participating Trustees may specify Class I shares of one or more of
the funds of The One Group ("Eligible Funds") that will be used to measure the
investment performance of the Participating Trustee's Account. A Participating
Trustee may change his or her Eligible Fund selection, and exchange amounts
credited to the Participating Trustees's Account among Eligible Funds, no more
frequently then quarterly, to be effective on the first day of the following
quarter.

         (b) The value of the Account will equal the amount such Account would
have had if the amount credited to it had been invested and reinvested in shares
of the designated Eligible Funds. The initial value of the amount credited to
the Account will be effected at the Eligible Fund's current net asset value as
set forth in The One Group's Declaration of Trust and currently effective
Registration Statement The Account will be credited or charged with book
adjustments representing all interest, dividends and other earnings and all
gains and losses that would have been realized had the amounts credited to the
Account actually been invested in the Eligible Funds.

                  (i) In the event that an Eligible Fund combines, reclassifies
                  or substitutes other securities by merger, consolidation or
                  otherwise for its outstanding shares, the number of shares
                  credited to the Participating Trustee's Account shall be
                  adjusted to preserve rights substantially proportionate to the
                  rights held immediately prior to such event.

                  (ii) On each payable date of a dividend or capital gains
                  distribution declared by the Board, the Account will be
                  credited with amounts representing the number of full and
                  fractional shares of the Eligible Fund that the shares
                  credited to the Account would have purchased if reinvested at
                  the net asset value on the record date established by the
                  Board with respect to such dividend and/or capital gains
                  distribution.

         (c) The Plan does not obligate the Trust to purchase, hold or dispose
of any investments, and if the Trust should choose to purchase investments,
including the shares of Eligible Funds, in order to 



<PAGE>   3


match its obligations exactly, all such investments will continue to be part of
the general assets and property of the Trust. If the Trust purchases shares of
the Eligible Funds, the shares will be held solely in the name of the Trust. The
Trust will not purchase shares of Eligible Funds if the purchase of such shares
would result in a violation of Section 12(d)(1) of the Investment Company Act of
1940. If the Trust purchases shares of Eligible Funds, it will vote such shares
in proportion to the votes of all other shareholders of such Eligible Fund.

5. MANNER OF ELECTING DEFERRAL.

         (a) A Participating Trustee shall elect to participate in the Plan and
defer his or her compensation by completing, signing and filing with the Trust a
Notice of Election to Defer Compensation (the "Notice of Election"), a form of
which is attached to this Plan. The Notice of Election shall include:

                  (i)      the amount of compensation to be deferred;

                  (ii)     the name of the Eligible Fund or Funds against which
                           the performance of the Account is to be measured;

                  (iii)    the manner of payment of such deferred compensation
                           (i.e., in a lump sum or the number of annual
                           installments);

                  (iv)     the time or times of payment of such deferred
                           compensation; and

                  (v)      any beneficiary designated pursuant to Section 8(c)
                           of the Plan.

         (b) The Participating Trustee's deferred fees will be distributed
commencing on a date specified by the Participating Trustee on the Notice of
Election, which shall be no sooner than:

                  (i)      the first business day of January of the year
                           following the year in which the Participating Trustee
                           ceases to be a trustee, and

                  (ii)     a date one year after the deferral election.

Notwithstanding the foregoing, deferred compensation under the Plan shall be
distributed:

                  (i)      in the event of the Participating Trustee's death, as
                           provided in Section 8(c) of this Plan, or

                  (ii)     upon the occurrence of any of the following events:

                           1.       the dissolution, liquidation , or winding up
                                    of the Trust, whether voluntary or
                                    involuntary;

                           2.       the voluntary sale, conveyance or transfer
                                    of all or substantially all of the Trust's
                                    assets (unless the obligations of the Trust
                                    have been assumed by another investment
                                    company);

                           3.       the merger of the Trust into another
                                    investment company or its consolidation with
                                    one or more other investment companies
                                    (unless the 



<PAGE>   4


                                    obligations of the Trust are assumed by such
                                    surviving entity and the surviving entity is
                                    another investment company); or

                           4.       the date on which an unforeseeable event
                                    causing material financial hardship occurs
                                    which is not within the Participating
                                    Trustee's control, subject to approval by
                                    the Plan's Administrator.

6.       EFFECTIVE DATE OF DEFERRAL ELECTIONS.

         (a) Any election by a trustee, or nominee for election as a trustee, to
defer compensation pursuant to the Plan shall be irrevocable from and after the
date on which such trustee's Notice of Election is filed with the Trust (except
as provided in Section 7(b) of the Plan), and shall be effective to defer such
person's compensation as a trustee as follows:

                  (i)      as to any trustee in office on the effective date of
                           the Plan who files a Notice of Election no later than
                           60 days after such effective date, the Notice shall
                           be effective to defer any compensation which is
                           earned by such trustee after the date of the filing
                           of the Notice of Election;

                  (ii)     as to any nominee for the office of trustee who has
                           not previously served as a trustee and who files a
                           Notice of Election prior to his election as a
                           trustee, such election to defer shall be effective to
                           defer any compensation which is earned by such
                           nominee after his election as a trustee; and

                  (iii)    as to any other trustee, the election to defer shall
                           be effective to defer any compensation that is earned
                           from and after January 1 of the calendar year next
                           succeeding the year in which the Notice of Election
                           is filed.

         (b) Any election to defer compensation made by a trustee shall continue
in effect until the Trust is notified in writing by such trustee prior to the
end of any calendar year that he or she wishes to terminate or modify such
election with respect to (and only with respect to) compensation earned after
the calendar year in which such amended Notice of Election is filed with the
Trust. Upon receipt by the Trust of such an amended Notice of Election, any
compensation earned by such trustee from and after January 1 of the calendar
year succeeding the day on which such notice was received shall be paid
currently and no longer deferred as provided in the Plan. However, any amounts
in such Participating Trustee's Account on such January 1 shall continue to be
payable in accordance with the Notice of Election (or Notices) pursuant to which
it was deferred.

         (c) A Participating Trustee who has filed a Notice of Election to
terminate deferment of compensation may thereafter again file a Notice of
Election to participate pursuant to Section 6 hereof effective for the calendar
year subsequent to the calendar year in which he or she files the new Notice.

7.       PAYMENT OF DEFERRED COMPENSATION.

         (a) No payment may be made from any Account except as provided in this
Section.



<PAGE>   5


         (b) The aggregate value of a Participating Trustee's Account will be
paid in a lump sum or in installments, as specified in his or her Notice (or
Notices) of Election and at the time or times specified in the Notice (or
Notices) of Election. If installments are elected by a Participating Trustee,
the amount of the first payment shall be a fraction of the then value of such
Participating Trustee's Account, the numerator of which is one, and the
denominator of which is the total number of installments. The amount of each
subsequent payment shall be a fraction of the then value of such Participating
Trustee's Account remaining after the prior payment, the numerator of which is
one and the denominator of which is the total number of installments elected
minus the number of installments previously paid. If a lump sum is elected,
payment shall be made in the amount credited to the Participating Trustee's
Account.

         (c) In the event of a Participating Trustee's death before he or she
has received payment of all amounts in such Participating Trustee's Account, the
value of such Account shall be paid in accordance with the provisions of the
Plan as soon as reasonably possible to the beneficiary designated in such
Participating Trustee's Notice of Election. If such beneficiary does not survive
the Participating Trustee or no beneficiary is designated, payment of all
amounts in the Account shall be made in a lump sum to such Participating
Trustee's estate. Any beneficiary so designated by a Participating Trustee may
be changed at any time by notice in writing from such trustee to the Trust.
Payment under this subsection shall equal the amount credited to the
Participating Trustee's Account at the time of his death.

         (d) Upon the occurrence of an unforeseen event causing material
financial hardship, the administrator shall distribute to the Participating
Trustee, in a single lump sum, an amount equal to the lesser of amount requested
by the Participating Trustee and amount remaining in the Account.

8. STATEMENT OF ACCOUNT. the Trust will furnish each Participating Trustee with
a quarterly statement setting forth the value of such Participating Trustee's
Account as of the end of each calendar quarter and all credits to and payments
from such Account during such quarter. Such statements will be furnished no
later than 60 days after the end of each calendar quarter.

9. RIGHTS IN ACCOUNT. Credits to Accounts shall remain part of the general
assets of the Trust, shall at all times be the sole and absolute property of the
Trust and shall in no event be deemed to constitute a fund, trust or collateral
security for the payment of the deferred compensation to which trustees are
entitled from such Accounts. The right of any Participating Trustee or his
designated beneficiary or estate to receive future payment of deferred
compensation under the provisions of the Plan shall be an unsecured claim
against general assets of the Trust, if any, available at the time of payment.

10. NON-ASSIGNABILITY. No Participating Trustee, his or her designated
beneficiary or estate, nor any other person shall have the right to encumber,
pledge, sell, assign or transfer the right to receive payments under this Plan,
except by will or by the laws of descent and distribution. All such payments and
the right thereto are expressly declared to be non-assignable.

11. ADMINISTRATION. The Plan shall be administered by such officers of the Trust
as are appointed by the Chairman of the Board or, if no Chairman of the Board
has been appointed, by the President of the Trust. All Notices shall be filed
with the officers as appointed and such officers shall be responsible for
maintaining records of all Accounts and for furnishing the quarterly statements
of account provided for in Section 8 of the Plan. Such officers shall also have
the general authority to interpret, construe and implement provisions of the
Plan. Any determination by such officers shall be binding on the Participating
Trustee and shall be final and conclusive.



<PAGE>   6


12. AMENDMENT OR TERMINATION. The Plan may at any time be amended, modified or
terminated by the Board. However, no amendment, modification or termination
shall adversely affect any Participating Trustee's rights in respect of amounts
theretofore credited to his or her Account.

13. EFFECTIVE DATE. This Plan shall be effective as of __________________ and
any amendments hereto shall be effective on the date of adoption thereof by the
Board.





<PAGE>   7


                    Notice of Election to Defer Compensation
                                    Under the
                           Deferred Compensation Plan
                               for the Trustees of
                         The One Group Investment Trust

                    ---------------------------------------

         I hereby elect to defer compensation to which I may hereafter become
entitled, as follows (check one):

         1.       Effective Date:
                  ---------------

                  _____(a)   Compensation earned after the date of this election

                  _____(b)   Compensation earned after ____________________.
                                                          [future date]

         2.       Amount Deferred:
                  ----------------

                  _____(a)  All Compensation

                  _____(b)  $ __________ per quarter

                  _____(c)  Other: 
                                   ---------------------------------------------
                                                                               .
                             --------------------------------------------------

         3.       Time of Payment:
                  ----------------

                  _____(a)  The first business day of January of the year 
                            following the year in which I cease to be a Trustee

                  _____(b)  The first business day of _____________________
                                                            [specify]
                                                                           .
                             ----------------------------------------------
                                         [month(s) and year(s)]

         4.       Manner of Payments:
                  -------------------

                  _____(a)  Entire amount in a lump sum

                  _____(b)  In __________________ equal installments




                                       13
<PAGE>   8

         5.       Period of Election:
                  -------------------

                  Subject to my further election to change or terminate it, my 
                  election shall continue:

                  _____(a)  Until I cease to be a Trustee
                                                                           .
                  _____(b)  Until _________________________________________
                                            [specify date or event]

         6.       Designation of Beneficiary:
                  ---------------------------

                  I hereby designate
                  __________________________________________________________ of
                  _________________________________________ * as my beneficiary
                  to receive payments in the event of my death before payments 
                  in full hereunder have been made.  In the event that the said 
                  beneficiary predeceases me, I hereby designate _______________
                  of _____________________ * as beneficiary instead.


         7.       Eligible Funds
                  --------------

                  I hereby elect that my Account under the Plan be considered to
                  be invested as follows (in multiples of [    %]):

                  ________________________ Fund _______________%

                  ________________________ Fund _______________%

                  ________________________ Fund _______________%

                  ________________________ Fund _______________%


*        If more than one beneficiary is to be designated, add a page listing 
         the beneficiaries and specify the percentage of each payment to be 
         received by each beneficiary.


         8.       Amendment or Termination:
                  -------------------------

                  I hereby (amend) (terminate) my written directions as
                  indicated in Notice of Election to Defer Compensation dated
                  ____________________, in accordance with Section 6(b) of the
                  Deferred Compensation Plan and in the following manner:


                  --------------------------------------------------------------

                  --------------------------------------------------------------

                                                 -------------------------------
                                                      [Signature of Trustee]
Date:
      ------------------

- ------------------------


                                       14

<PAGE>   1
                                 EXHIBIT (9)(B)

 REVISED SCHEDULE A TO THE MANAGEMENT AND ADMINISTRATION AGREEMENT BETWEEN THE
                 REGISTRANT AND THE ONE GROUP SERVICES COMPANY




<PAGE>   2


                                   SCHEDULE A
                 TO THE MANAGEMENT AND ADMINISTRATION AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY



NAME OF THE MULTIPLE CLASS FUNDS
- --------------------------------
U.S. Treasury Securities Money Market Fund
Prime Money Market Fund
Municipal Money Market Fund (formerly Tax-Free Money Market Portfolio) 
Ohio Municipal Money Market Fund 
Michigan Municipal Money Market Fund 
Cash Management Money Market Fund 
Treasury Cash Management Money Market Fund 
Treasury Prime Cash Management Money Market Fund 
U.S. Government Cash Management Money Market Fund
Municipal Cash Management Money Market Fund 
Balanced Fund (formerly Asset Allocation Fund) 
Equity Income Fund (formerly Income Equity Fund) 
Mid Cap Value Fund (formerly Disciplined Value Fund) 
Mid Cap Growth Fund (formerly Growth Opportunities Fund) 
International Equity Index Fund 
Large Cap Value Fund (formerly Large Company Value Fund) 
Equity Index Fund 
Large Cap Growth Fund (formerly Large Company Growth Fund) 
Diversified Equity Fund (formerly Value Growth Fund) 
Small Cap Growth Fund (formerly Small Capitalization Fund)
Diversified Mid Cap Fund 
Small Cap Value Fund 
Diversified International Fund
Market Expansion Index Fund 
High Yield Bond Fund 
Bond Fund 
Treasury & Agency Fund 
Intermediate Bond Fund 
Income Bond Fund (formerly Income Portfolio)
Short-Term Bond Fund (formerly Limited Volatility Bond Fund) 
Government Bond Fund 
Ultra Short-Term Bond Fund (formerly Ultra Short-Term Income Fund) 
Ohio Municipal Bond Fund 
Municipal Income Fund (formerly Tax Free Bond Fund)
Intermediate Tax-Free Bond Fund 
Louisiana Municipal Bond Fund 
Texas Municipal Bond Fund 
West Virginia Municipal Bond Fund 
Kentucky Municipal Bond Fund 
Arizona Municipal Bond Fund 
Michigan Municipal Bond Fund 
Short-Term Municipal Bond Fund
Tax-Free Bond Fund




<PAGE>   3




COMPENSATION REGARDING MULTIPLE CLASS FUNDS
- -------------------------------------------

     Compensation for each of the above Funds (the "Multiple Class Funds") shall
be at annual rates of the Fund's average daily net assets as follows: twenty
one-hundredths of one percent (.20%) of amounts included in that portion of the
aggregate daily net assets of all Multiple Class Funds subject to this Agreement
equal to or less than $1,500,000,000; eighteen one-hundredths of one percent
(.18%) of amounts included in the portion of the aggregate daily net assets of
all Multiple Class Funds subject to this Agreement between $1,500,000,000 and
$2,000,000,000; and sixteen one-hundredths of one percent (.16%) of amounts
included in that portion of the aggregate daily net assets of all Multiple Class
Funds subject to this Agreement in excess of $2,000,000,000. The fees pertaining
to each Multiple Class Fund shall be computed daily in amounts strictly
proportionate to the amount of the Fund's average daily net assets as a
percentage of the aggregate daily net assets of all Multiple Class Funds subject
to this Agreement, and shall be paid periodically.

NAME OF SINGLE CLASS FUNDS
- --------------------------
Treasury Money Market Fund
Treasury Only Money Market Fund
Government Money Market Fund
Tax Exempt Money Market Fund
Institutional Prime Money Market Fund

COMPENSATION REGARDING SINGLE CLASS FUNDS
- -----------------------------------------

     Compensation for each of the Funds listed immediately above (the "Single
Class Funds") shall be at the following annual rates: With respect to The One
Group Treasury Money Market, The One Group Treasury Only Money Market, The One
Group Government Money Market, and the One Group Tax Exempt Money Market Funds"
five one-hundredths of one percent (.05%) of the Fund's average daily net
assets; and with respect to The One Group Institutional Prime Money Market Fund:
four one-hundredths of one percent (.04%) of the Fund's average daily net
assets. The fees pertaining to each Single Class Fund shall be computed daily
and paid periodically.

NAME OF FUND OF FUNDS
- ---------------------
Investor Aggressive Growth Fund
Investor Growth Fund
Investor Growth and Income Fund
Investor Balanced Fund
Investor Conservative Growth Fund
Investor Fixed Income Fund

COMPENSATION REGARDING FUND OF FUNDS
- ------------------------------------

     Compensation for each of the above Funds (the "Fund of Funds") shall be at
annual rates as follows: ten one-hundredths of one percent (.10%) of the Fund's
average daily net assets on the first $500,000,000 in Fund assets; seven and
one-half one-hundredths of one percent (.075%) of the Fund's average daily net
assets between $500,000,000 and $1,000,000,000 and five one-hundredths of one
percent (.05%) of the Fund's average daily net assets when Fund assets exceed
$1,000,000,000.



<PAGE>   4


COMPENSATION TO BE REDUCED BY FUND ACCOUNTING FEES
- --------------------------------------------------

     The compensation under this Agreement due to The One Group Services Company
with respect to each Multiple Class Fund, each Single Class Fund and each Fund
of Fund shall be reduced in each month by the amount of compensation paid to The
One Group Service Company under its Fund Accounting Agreement with The One Group
with respect to such Fund.

<TABLE>
<S>                                     <C>
THE ONE GROUP(R)                        THE ONE GROUP SERVICES COMPANY
By: /s/ William J. Tomko                By:  /s/ Mark S. Redman
- -------------------------               -------------------------------


Date: November 23, 1998                 Date: November 23, 1998
- -------------------------               -------------------------------
</TABLE>







<PAGE>   1


                                 EXHIBIT (9)(f)
               REVISED SCHEDULE A TO THE FUND ACCOUNTING AGREEMENT
            BETWEEN THE REGISTRANT AND THE ONE GROUP SERVICES COMPANY












                                       15
<PAGE>   2


                                   SCHEDULE A
                        TO THE FUND ACCOUNTING AGREEMENT
                                     BETWEEN
                                THE ONE GROUP(R)
                                       AND
                         THE ONE GROUP SERVICES COMPANY


Name of the Fund
- ----------------

U.S. Treasury Securities Money Market Fund
Prime Money Market Fund
Municipal Money Market Fund (formerly Tax-Free Money Market Portfolio)
Ohio Municipal Money Market Fund
Michigan Municipal Money Market Fund
Cash Management Money Market Fund
Treasury Cash Management Money Market Fund
Treasury Prime Cash Management Money Market Fund
U.S. Government Cash Management Money Market Fund
Municipal Cash Management Money Market Fund
Treasury Money Market Fund
Treasury Only Money Market Fund
Government Money Market Fund
Tax Exempt Money Market Fund
Institutional Prime Money Market Fund
Balanced Fund (formerly Asset Allocation Fund)
Equity Income Fund (formerly Income Equity Fund)
Mid Cap Value Fund (formerly Disciplined Value Fund)
Mid Cap Growth Fund (formerly Growth Opportunities Fund)
International Equity Index Fund
Large Cap Growth Fund (formerly Large Company Value Fund)
Equity Index Fund
Diversified Equity Fund (formerly Value Growth Fund)
Small Cap Growth (formerly Small Capitalization Fund)
Diversified Mid Cap Fund
Small Cap Value Fund
Diversified International Fund
Market Expansion Index Fund
High Yield Bond Fund
Bond Fund
Government Bond Fund
Income Bond Fund (formerly Income Portfolio)
Short-Term Bond Fund (formerly Limited Volatility Bond Fund)
Ultra Short-Term Bond Fund (formerly Ultra Short-Term Income Fund)
Treasury & Agency Fund
Intermediate Tax-Free Bond Fund
Ohio Municipal Bond Fund
Municipal Income Fund (formerly Tax Free Bond Fund)
Texas Municipal Bond Fund
Intermediate Bond Fund
Arizona Municipal Bond Fund
Large Company Growth Fund
Kentucky Municipal Bond Fund
West Virginia Municipal Bond Fund



                                       16
<PAGE>   3


Michigan Municipal Bond Fund
Short-Term Municipal Bond Fund
Tax-Free Bond Fund
Louisiana Municipal Bond Fund
Investor Aggressive Growth Fund
Investor Growth Fund
Investor Growth and Income Fund
Investor Balanced Fund
Investor Conservative Growth Fund
Investor Fixed Income Fund



THE ONE GROUP(R)                            THE ONE GROUP SERVICES COMPANY


By:  /s/William J. Tomko                    By:  /s/Mark S. Redman
     -------------------                         -----------------

Date:  November 23, 1998                    Date:  November 23, 1998




                                       17

<PAGE>   1


                                 EXHIBIT (9)(h)


     REVISED SCHEDULE A TO THE SUB-ADMINISTRATION AGREEMENT BETWEEN THE ONE
                           GROUP SERVICES COMPANY AND
                    BANC ONE INVESTMENT ADVISORS CORPORATION










                                       18
<PAGE>   2


                                   SCHEDULE A
                       TO THE SUB-ADMINISTRATION AGREEMENT
                                     BETWEEN
                         THE ONE GROUP SERVICES COMPANY
                                       AND
                          BANC ONE INVESTMENT ADVISORS


NAME OF THE MULTIPLE CLASS FUND
- -------------------------------
U.S. Treasury Securities Money Market Fund
Prime Money Market Fund
Municipal Money Market Fund (formerly Tax-Free Money Market Portfolio)
Ohio Municipal Money Market Fund
Michigan Municipal Money Market Fund Cash Management Money Market Fund
Treasury Cash Management Money Market Fund
Treasury Prime Cash Management Money Market Fund
U.S. Government Cash Management Money Market Fund
Municipal Cash Management Money Market Fund
Balanced Fund (formerly Asset Allocation Fund)
Equity Income (formerly Income Equity Fund)
Mid Cap Value Fund (formerly Disciplined Value Fund)
Mid Cap Growth Fund (formerly Growth Opportunities Fund)
International Equity Index Fund
Large Cap Growth Fund (formerly Large Company Growth Fund)
Large Cap Value Fund (formerly Large Company Value Fund)
Equity Index Fund
Diversified Equity Fund (formerly Value Growth Fund)
Small Cap Growth (formerly Small Capitalization Fund)
Diversified Mid Cap Fund
Small Cap Value Fund
Diversified International Fund
Market Expansion Index Fund
High Yield Bond Fund
Bond Fund
Treasury & Agency Fund
Income Bond Fund (formerly Income Portfolio)
Short-Term Bond Fund (formerly Limited Volatility Bond Fund)
Government Bond Fund
Ultra Short-Term Bond Fund (formerly Ultra Short-Term Income Fund)
Intermediate Bond Fund
Intermediate Tax-Free Bond Fund
Ohio Municipal Bond Fund
Municipal Income Fund (formerly Tax Free Bond Fund)
Texas Municipal Bond Fund
West Virginia Municipal Bond Fund
Louisiana Municipal Bond Fund
Kentucky Municipal Bond Fund
Arizona Municipal Bond Fund
Michigan Municipal Bond Fund
Short-Term Municipal Bond Fund
Tax-Free Bond Fund



                                       19
<PAGE>   3


Investor Aggressive Growth Fund
Investor Growth Fund
Investor Growth and Income Fund
Investor Balanced Fund
Investor Conservative Growth Fund
Investor Fixed Income Fund

NAME OF SINGLE CLASS FUNDS
- --------------------------
The One Group Treasury Money Market Fund
The One Group Treasury Only Money Market Fund
The One Group Government Money Market Fund
The One Group Tax Exempt Money Market Fund
The One Group Institutional Prime Money Market Fund



BANC ONE INVESTMENT ADVISORS CORPORATION       THE ONE GROUP SERVICES COMPANY


By:  /s/Mark A. Beeson                         By:  /s/Mark S. Redman
     -----------------                              -----------------

Date: November 23, 1998                        Date:  November 23, 1998
      -----------------                               -----------------




                                       20

<PAGE>   1



                                   EXHIBIT 10
                               OPINION OF COUNSEL











                                       21
<PAGE>   2
   
                                ROPES & GRAY
                                1301 K STREET, N.W.
                                SUITE 800 EAST
                                WASHINGTON, DC 20005-3333
                                    (202) 626-3900
                                FAX (202) 626-3961

    

   
                                December 23, 1998
    


The One Group(R)
3435 Stelzer Road
Columbus, Ohio  43219

Ladies and Gentlemen:

         You have registered under the Securities Act of 1933, as amended (the
"1933 Act") an indefinite number of shares of beneficial interest ("Shares") of
The One Group ("Trust"), as permitted by Rule 24f-2 under the Investment Company
Act of 1940, as amended (the "1940 Act"). You propose to file a post-effective
amendment on Form N-1A (the "Post-Effective Amendment") to your Registration
Statement in order to register under the 1933 Act and the 1940 Act shares of the
Funds of the Trust.

         We have examined your Agreement and Declaration of Trust on file in the
office of the Secretary of The Commonwealth of Massachusetts and the Clerk of
the City of Boston. We have also examined a copy of your Code of Regulations and
such other documents, receipts and records as we have deemed necessary for the
purpose of this opinion.

         Based on the foregoing, we are of the opinion that the issue and sale
of authorized but unissued Shares of the Funds have been duly authorized under
Massachusetts law. Upon the original issue and sale of your authorized but
unissued Shares and upon receipt of the authorized consideration therefor in an
amount not less than the net asset value of the Shares established and in force
at the time of their sale, the Shares issued will be validly issued, fully paid
and non-assessable.

         The Trust is an entity of the type commonly known as a "Massachusetts
business trust". Under Massachusetts law, shareholders could, under certain
circumstances, be held personally liable for the obligations of the Trust.
However, the Agreement and Declaration of Trust provides for indemnification out
of the property of a particular series of Shares for all loss and expenses of
any shareholder of that series held personally liable solely by reason of his
being or having been a shareholder. Thus, the risk of shareholder liability is
limited to circumstances in which that series of Shares itself would be unable
to meet its obligations.

         We understand that this opinion is to be used in connection with the
filing of the Post-Effective Amendment. We consent to the filing of this opinion
with and as part of your Post-Effective Amendment.

Sincerely,
/s/Ropes & Gray
Ropes & Gray



                                       22

<PAGE>   1


                                  EXHIBIT 11(a)

                      Consent of PricewaterhouseCoopers LLP









                                       23
<PAGE>   2


                       CONSENT OF INDEPENDENT ACCOUNTANTS



We consent to the incorporation by reference in this Post-Effective Amendment
No. 47 to the Registration Statement on Form N-1A (File no. 2-95973) of The One
Group, of our reports dated August 18, 1998 on our audits of the financial
statements and financial highlights of the U.S. Treasury Securities Money Market
Fund, the Prime Money Market Fund, the Municipal Money Market Fund, the Ohio
Municipal Money Market Fund, the Ultra Short-Term Income Fund, the Limited
Volatility Bond Fund, the Government Bond Fund, the Treasury & Agency Fund, the
Intermediate Tax-Free Bond Fund, the Municipal Income Fund, the Kentucky
Municipal Bond Fund, the Ohio Municipal Bond Fund, the Louisiana Municipal Bond
Fund, the West Virginia Municipal Bond Fund, the Arizona Municipal Bond Fund,
the Treasury Only Money Market Fund, the Government Money Market Fund, 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, the International Equity Index Fund, the Investor Growth Fund, the
Investor Growth & Income Fund, the Investor Balanced Fund, and the Investor
Conservative Growth Fund constituting The One Group, which reports are included
in the Annual Reports to Shareholders for the year ended June 30, 1998. We also
consent to the references to our firm under the caption "Financial Highlights"
and "Independent Accountants" in the Prospectuses and "Experts" in the Statement
of Additional Information relating to The One Group which are incorporated by
reference in this Post-Effective Amendment No. 47 to the Registration Statement
on Form N-1A (File No. 2-95973).




        /s/PricewaterhouseCoopers LLP
        PricewaterhouseCoopers LLP


   
Columbus, Ohio
December 22, 1998
    


                                       24

<PAGE>   1



                                  EXHIBIT 11(b)

                             CONSENT OF ROPES & GRAY










                                       25
<PAGE>   2


                               CONSENT OF COUNSEL


         We hereby consent to the use of our name and the references to our firm
under the caption "Legal Counsel" and "Experts" included in or made a part of
Post-Effective Amendment No. 47 to the Registration Statement of The One
Group(R) (Nos. 2-95973 and 811-4236) on Form N-1A under the Securities Act of
1933, as amended.


   
/s/Ropes & Gray
ROPES & GRAY
Washington, D.C.
December 23, 1998
    






                                       26

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 011
   <NAME> THE ONE GROUP PRIME MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          3209757
<INVESTMENTS-AT-VALUE>                         3209757
<RECEIVABLES>                                    30105
<ASSETS-OTHER>                                      19
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 3239881
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        15980
<TOTAL-LIABILITIES>                              15980
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3223805
<SHARES-COMMON-STOCK>                          2616618<F1>
<SHARES-COMMON-PRIOR>                          2563763<F1>
<ACCUMULATED-NII-CURRENT>                            8
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             88
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3223901
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               189463
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   18122
<NET-INVESTMENT-INCOME>                         171341
<REALIZED-GAINS-CURRENT>                            89
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           171430
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                       144494<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                        5665895<F1>
<NUMBER-OF-SHARES-REDEEMED>                    5614931<F1>
<SHARES-REINVESTED>                               1891<F1>
<NET-CHANGE-IN-ASSETS>                          326869
<ACCUMULATED-NII-PRIOR>                              7
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11482
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  20359
<AVERAGE-NET-ASSETS>                           2744970<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .053<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .053<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .51<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 012
   <NAME> THE ONE GROUP PRIME MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          3209757
<INVESTMENTS-AT-VALUE>                         3209757
<RECEIVABLES>                                    30105
<ASSETS-OTHER>                                      19
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 3239881
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        15980
<TOTAL-LIABILITIES>                              15980
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3223805
<SHARES-COMMON-STOCK>                           605274<F1>
<SHARES-COMMON-PRIOR>                           332643<F1>
<ACCUMULATED-NII-CURRENT>                            8
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             88
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3223901
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               189463
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   18122
<NET-INVESTMENT-INCOME>                         171341
<REALIZED-GAINS-CURRENT>                            89
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           171430
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        26806<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                        2096713<F1>
<NUMBER-OF-SHARES-REDEEMED>                    1840335<F1>
<SHARES-REINVESTED>                              16253<F1>
<NET-CHANGE-IN-ASSETS>                          326869
<ACCUMULATED-NII-PRIOR>                              7
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11482
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  20359
<AVERAGE-NET-ASSETS>                            534751<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .050<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .050<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .76<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 013
   <NAME> THE ONE GROUP PRIME MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          3209757
<INVESTMENTS-AT-VALUE>                         3209757
<RECEIVABLES>                                    30105
<ASSETS-OTHER>                                      19
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 3239881
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        15980
<TOTAL-LIABILITIES>                              15980
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3223805
<SHARES-COMMON-STOCK>                             1913<F1>
<SHARES-COMMON-PRIOR>                              619<F1>
<ACCUMULATED-NII-CURRENT>                            8
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             88
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3223901
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               189463
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   18122
<NET-INVESTMENT-INCOME>                         171341
<REALIZED-GAINS-CURRENT>                            89
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           171430
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           41<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3317<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2053<F1>
<SHARES-REINVESTED>                                 30<F1>
<NET-CHANGE-IN-ASSETS>                          326869
<ACCUMULATED-NII-PRIOR>                              7
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11482
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  20359
<AVERAGE-NET-ASSETS>                               952<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .043<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .043<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                   1.51<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 021
   <NAME> THE ONE GROUP US TREASURY SECURITIES MM FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          4149203
<INVESTMENTS-AT-VALUE>                         4149203
<RECEIVABLES>                                    11892
<ASSETS-OTHER>                                      60
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 4161155
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       274015
<TOTAL-LIABILITIES>                             274015
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3886907
<SHARES-COMMON-STOCK>                          3025409<F1>
<SHARES-COMMON-PRIOR>                          2243208<F1>
<ACCUMULATED-NII-CURRENT>                          193
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             40
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3887140
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               184497
<OTHER-INCOME>                                     150
<EXPENSES-NET>                                   18932
<NET-INVESTMENT-INCOME>                         165715
<REALIZED-GAINS-CURRENT>                            40
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           165755
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                       129665<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                        6794618<F1>
<NUMBER-OF-SHARES-REDEEMED>                    6012860<F1>
<SHARES-REINVESTED>                                443<F1>
<NET-CHANGE-IN-ASSETS>                         1113551
<ACCUMULATED-NII-PRIOR>                             43
<ACCUMULATED-GAINS-PRIOR>                          151
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11575
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  21824
<AVERAGE-NET-ASSETS>                           2559101<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .051<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .051<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .52<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 022
   <NAME> THE ONE GROUP US TREASURY SECURITIES MM FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          4149203
<INVESTMENTS-AT-VALUE>                         4149203
<RECEIVABLES>                                    11892
<ASSETS-OTHER>                                      60
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 4161155
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       274015
<TOTAL-LIABILITIES>                             274015
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3886907
<SHARES-COMMON-STOCK>                           861313<F1>
<SHARES-COMMON-PRIOR>                           530164<F1>
<ACCUMULATED-NII-CURRENT>                          193
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             40
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3887140
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               184497
<OTHER-INCOME>                                     150
<EXPENSES-NET>                                   18932
<NET-INVESTMENT-INCOME>                         165715
<REALIZED-GAINS-CURRENT>                            40
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           165755
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        36044<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                        1753840<F1>
<NUMBER-OF-SHARES-REDEEMED>                    1433946<F1>
<SHARES-REINVESTED>                              11283<F1>
<NET-CHANGE-IN-ASSETS>                         1113551
<ACCUMULATED-NII-PRIOR>                             43
<ACCUMULATED-GAINS-PRIOR>                          151
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11575
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  21824
<AVERAGE-NET-ASSETS>                            748181<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .048<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .048<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .77<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 023
   <NAME> THE ONE GROUP US TREASURY SECURITIES MM FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          4149203
<INVESTMENTS-AT-VALUE>                         4149203
<RECEIVABLES>                                    11892
<ASSETS-OTHER>                                      60
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 4161155
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       274015
<TOTAL-LIABILITIES>                             274015
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3886907
<SHARES-COMMON-STOCK>                              181<F1>
<SHARES-COMMON-PRIOR>                               49<F1>
<ACCUMULATED-NII-CURRENT>                          193
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             40
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3887140
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               184497
<OTHER-INCOME>                                     150
<EXPENSES-NET>                                   18932
<NET-INVESTMENT-INCOME>                         165715
<REALIZED-GAINS-CURRENT>                            40
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           165755
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            6<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            407<F1>
<NUMBER-OF-SHARES-REDEEMED>                        280<F1>
<SHARES-REINVESTED>                                  5<F1>
<NET-CHANGE-IN-ASSETS>                         1113551
<ACCUMULATED-NII-PRIOR>                             43
<ACCUMULATED-GAINS-PRIOR>                          151
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11575
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  21824
<AVERAGE-NET-ASSETS>                               137<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .041<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .041<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                   1.52<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 024
   <NAME> THE ONE GROUP US TREASURY SECURITIES MM FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          4149203
<INVESTMENTS-AT-VALUE>                         4149203
<RECEIVABLES>                                    11892
<ASSETS-OTHER>                                      60
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 4161155
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       274015
<TOTAL-LIABILITIES>                             274015
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3886907
<SHARES-COMMON-STOCK>                                1<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                          193
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             40
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3887140
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               184497
<OTHER-INCOME>                                     150
<EXPENSES-NET>                                   18932
<NET-INVESTMENT-INCOME>                         165715
<REALIZED-GAINS-CURRENT>                            40
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           165755
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                              1<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                         1113551
<ACCUMULATED-NII-PRIOR>                             43
<ACCUMULATED-GAINS-PRIOR>                          151
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            11575
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  21824
<AVERAGE-NET-ASSETS>                                 0<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .015<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .015<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                   1.57<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 031
   <NAME> THE ONE GROUP MUNICIPAL MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           613922
<INVESTMENTS-AT-VALUE>                          613922
<RECEIVABLES>                                    23571
<ASSETS-OTHER>                                    4551
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  642044
<PAYABLE-FOR-SECURITIES>                         37293
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1815
<TOTAL-LIABILITIES>                              39108
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        603068
<SHARES-COMMON-STOCK>                           498245<F1>
<SHARES-COMMON-PRIOR>                           467546<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             130
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             2
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    602936
<DIVIDEND-INCOME>                                  165
<INTEREST-INCOME>                                21708
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    2914
<NET-INVESTMENT-INCOME>                          18959
<REALIZED-GAINS-CURRENT>                            11
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                            18970
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        16050<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                        1087776<F1>
<NUMBER-OF-SHARES-REDEEMED>                    1057248<F1>
<SHARES-REINVESTED>                                171<F1>
<NET-CHANGE-IN-ASSETS>                           87331
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            130
<OVERDIST-NET-GAINS-PRIOR>                          13
<GROSS-ADVISORY-FEES>                             2087
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   3591
<AVERAGE-NET-ASSETS>                            498414<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .032<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .032<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .45<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 032
   <NAME> THE ONE GROUP MUNICIPAL MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           613922
<INVESTMENTS-AT-VALUE>                          613922
<RECEIVABLES>                                    23571
<ASSETS-OTHER>                                    4551
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  642044
<PAYABLE-FOR-SECURITIES>                         37293
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1815
<TOTAL-LIABILITIES>                              39108
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        603068
<SHARES-COMMON-STOCK>                           104821<F1>
<SHARES-COMMON-PRIOR>                            48200<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             130
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             2
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    602936
<DIVIDEND-INCOME>                                  165
<INTEREST-INCOME>                                21708
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    2914
<NET-INVESTMENT-INCOME>                          18959
<REALIZED-GAINS-CURRENT>                            11
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                            18970
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         2909<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                         406871<F1>
<NUMBER-OF-SHARES-REDEEMED>                     351920<F1>
<SHARES-REINVESTED>                               1670<F1>
<NET-CHANGE-IN-ASSETS>                           87331
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            130
<OVERDIST-NET-GAINS-PRIOR>                          13
<GROSS-ADVISORY-FEES>                             2087
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   3591
<AVERAGE-NET-ASSETS>                             97910<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .030<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .030<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .70<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 041
   <NAME> THE ONE GROUP INCOME EQUITY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           549687
<INVESTMENTS-AT-VALUE>                         1028523
<RECEIVABLES>                                     4031
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1032560
<PAYABLE-FOR-SECURITIES>                          1351
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        55041
<TOTAL-LIABILITIES>                              56392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        447045
<SHARES-COMMON-STOCK>                            28742<F1>
<SHARES-COMMON-PRIOR>                            29591<F1>
<ACCUMULATED-NII-CURRENT>                          162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          50125
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        478836
<NET-ASSETS>                                    976168
<DIVIDEND-INCOME>                                19180
<INTEREST-INCOME>                                 1924
<OTHER-INCOME>                                     119
<EXPENSES-NET>                                   10318
<NET-INVESTMENT-INCOME>                          10905
<REALIZED-GAINS-CURRENT>                         76585
<APPREC-INCREASE-CURRENT>                        98696
<NET-CHANGE-FROM-OPS>                           186186
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         9093<F1>
<DISTRIBUTIONS-OF-GAINS>                         62899<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           6020<F1>
<NUMBER-OF-SHARES-REDEEMED>                       7605<F1>
<SHARES-REINVESTED>                                736<F1>
<NET-CHANGE-IN-ASSETS>                          168667
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        55817
<OVERDISTRIB-NII-PRIOR>                              5
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6571
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  10417
<AVERAGE-NET-ASSETS>                            666899<F1>
<PER-SHARE-NAV-BEGIN>                            21.93<F1>
<PER-SHARE-NII>                                    .32<F1>
<PER-SHARE-GAIN-APPREC>                           4.36<F1>
<PER-SHARE-DIVIDEND>                               .31<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.23<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              24.07<F1>
<EXPENSE-RATIO>                                   1.00<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 042
   <NAME> THE ONE GROUP INCOME EQUITY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           549687
<INVESTMENTS-AT-VALUE>                         1028523
<RECEIVABLES>                                     4031
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1032560
<PAYABLE-FOR-SECURITIES>                          1351
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        55041
<TOTAL-LIABILITIES>                              56392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        447045
<SHARES-COMMON-STOCK>                             4895<F1>
<SHARES-COMMON-PRIOR>                             3606<F1>
<ACCUMULATED-NII-CURRENT>                          162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          50125
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        478836
<NET-ASSETS>                                    976168
<DIVIDEND-INCOME>                                19180
<INTEREST-INCOME>                                 1924
<OTHER-INCOME>                                     119
<EXPENSES-NET>                                   10318
<NET-INVESTMENT-INCOME>                          10905
<REALIZED-GAINS-CURRENT>                         76585
<APPREC-INCREASE-CURRENT>                        98696
<NET-CHANGE-FROM-OPS>                           186186
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1122<F1>
<DISTRIBUTIONS-OF-GAINS>                          9117<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1796<F1>
<NUMBER-OF-SHARES-REDEEMED>                        966<F1>
<SHARES-REINVESTED>                                459<F1>
<NET-CHANGE-IN-ASSETS>                          168667
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        55817
<OVERDISTRIB-NII-PRIOR>                              5
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6571
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  10417
<AVERAGE-NET-ASSETS>                             99091<F1>
<PER-SHARE-NAV-BEGIN>                            21.90<F1>
<PER-SHARE-NII>                                    .25<F1>
<PER-SHARE-GAIN-APPREC>                           4.37<F1>
<PER-SHARE-DIVIDEND>                               .25<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.23<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              24.04<F1>
<EXPENSE-RATIO>                                   1.25<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 043
   <NAME> THE ONE GROUP INCOME EQUITY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           549687
<INVESTMENTS-AT-VALUE>                         1028523
<RECEIVABLES>                                     4031
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1032560
<PAYABLE-FOR-SECURITIES>                          1351
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        55041
<TOTAL-LIABILITIES>                              56392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        447045
<SHARES-COMMON-STOCK>                             6886<F1>
<SHARES-COMMON-PRIOR>                             3622<F1>
<ACCUMULATED-NII-CURRENT>                          162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          50125
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        478836
<NET-ASSETS>                                    976168
<DIVIDEND-INCOME>                                19180
<INTEREST-INCOME>                                 1924
<OTHER-INCOME>                                     119
<EXPENSES-NET>                                   10318
<NET-INVESTMENT-INCOME>                          10905
<REALIZED-GAINS-CURRENT>                         76585
<APPREC-INCREASE-CURRENT>                        98696
<NET-CHANGE-FROM-OPS>                           186186
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          521<F1>
<DISTRIBUTIONS-OF-GAINS>                         10250<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3365<F1>
<NUMBER-OF-SHARES-REDEEMED>                        595<F1>
<SHARES-REINVESTED>                                494<F1>
<NET-CHANGE-IN-ASSETS>                          168667
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        55817
<OVERDISTRIB-NII-PRIOR>                              5
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6571
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  10417
<AVERAGE-NET-ASSETS>                            122108<F1>
<PER-SHARE-NAV-BEGIN>                            21.95<F1>
<PER-SHARE-NII>                                    .26<F1>
<PER-SHARE-GAIN-APPREC>                           4.36<F1>
<PER-SHARE-DIVIDEND>                               .26<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.23<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              24.08<F1>
<EXPENSE-RATIO>                                   1.99<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 044
   <NAME> THE ONE GROUP INCOME EQUITY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           549687
<INVESTMENTS-AT-VALUE>                         1028523
<RECEIVABLES>                                     4031
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1032560
<PAYABLE-FOR-SECURITIES>                          1351
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        55041
<TOTAL-LIABILITIES>                              56392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        447045
<SHARES-COMMON-STOCK>                               33<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                          162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          50125
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        478836
<NET-ASSETS>                                    976168
<DIVIDEND-INCOME>                                19180
<INTEREST-INCOME>                                 1924
<OTHER-INCOME>                                     119
<EXPENSES-NET>                                   10318
<NET-INVESTMENT-INCOME>                          10905
<REALIZED-GAINS-CURRENT>                         76585
<APPREC-INCREASE-CURRENT>                        98696
<NET-CHANGE-FROM-OPS>                           186186
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            2<F1>
<DISTRIBUTIONS-OF-GAINS>                            11<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                             32<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  1<F1>
<NET-CHANGE-IN-ASSETS>                          168667
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        55817
<OVERDISTRIB-NII-PRIOR>                              5
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6571
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  10417
<AVERAGE-NET-ASSETS>                               354<F1>
<PER-SHARE-NAV-BEGIN>                            21.40<F1>
<PER-SHARE-NII>                                    .06<F1>
<PER-SHARE-GAIN-APPREC>                           3.39<F1>
<PER-SHARE-DIVIDEND>                               .07<F1>
<PER-SHARE-DISTRIBUTIONS>                          .70<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              24.08<F1>
<EXPENSE-RATIO>                                   1.98<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 051
   <NAME> THE ONE GROUP INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1021032
<INVESTMENTS-AT-VALUE>                         1066073
<RECEIVABLES>                                    16871
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1082949
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       154437
<TOTAL-LIABILITIES>                             154437
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        951477
<SHARES-COMMON-STOCK>                            94421<F1>
<SHARES-COMMON-PRIOR>                            77589<F1>
<ACCUMULATED-NII-CURRENT>                          296
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         68302
<ACCUM-APPREC-OR-DEPREC>                         45041
<NET-ASSETS>                                    928512
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                61807
<OTHER-INCOME>                                     280
<EXPENSES-NET>                                    5315
<NET-INVESTMENT-INCOME>                          56772
<REALIZED-GAINS-CURRENT>                       (13587)
<APPREC-INCREASE-CURRENT>                        21151
<NET-CHANGE-FROM-OPS>                            64336
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        55018<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          29726<F1>
<NUMBER-OF-SHARES-REDEEMED>                      13025<F1>
<SHARES-REINVESTED>                                131<F1>
<NET-CHANGE-IN-ASSETS>                          172560
<ACCUMULATED-NII-PRIOR>                            288
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                       54705
<GROSS-ADVISORY-FEES>                             5074
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   7035
<AVERAGE-NET-ASSETS>                            817646<F1>
<PER-SHARE-NAV-BEGIN>                             9.42<F1>
<PER-SHARE-NII>                                    .64<F1>
<PER-SHARE-GAIN-APPREC>                            .09<F1>
<PER-SHARE-DIVIDEND>                               .64<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               9.51<F1>
<EXPENSE-RATIO>                                    .61<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 052
   <NAME> THE ONE GROUP INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1021032
<INVESTMENTS-AT-VALUE>                         1066073
<RECEIVABLES>                                    16871
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1082949
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       154437
<TOTAL-LIABILITIES>                             154437
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        951477
<SHARES-COMMON-STOCK>                             1550<F1>
<SHARES-COMMON-PRIOR>                             1522<F1>
<ACCUMULATED-NII-CURRENT>                          296
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         68302
<ACCUM-APPREC-OR-DEPREC>                         45041
<NET-ASSETS>                                    928512
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                61807
<OTHER-INCOME>                                     280
<EXPENSES-NET>                                    5315
<NET-INVESTMENT-INCOME>                          56772
<REALIZED-GAINS-CURRENT>                       (13587)
<APPREC-INCREASE-CURRENT>                        21151
<NET-CHANGE-FROM-OPS>                            64336
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          951<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            715<F1>
<NUMBER-OF-SHARES-REDEEMED>                        768<F1>
<SHARES-REINVESTED>                                 81<F1>
<NET-CHANGE-IN-ASSETS>                          172560
<ACCUMULATED-NII-PRIOR>                            288
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                       54705
<GROSS-ADVISORY-FEES>                             5074
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   7035
<AVERAGE-NET-ASSETS>                             14661<F1>
<PER-SHARE-NAV-BEGIN>                             9.41<F1>
<PER-SHARE-NII>                                    .62<F1>
<PER-SHARE-GAIN-APPREC>                            .10<F1>
<PER-SHARE-DIVIDEND>                               .62<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               9.51<F1>
<EXPENSE-RATIO>                                    .86<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 053
   <NAME> THE ONE GROUP INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1021032
<INVESTMENTS-AT-VALUE>                         1066073
<RECEIVABLES>                                    16871
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1082949
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       154437
<TOTAL-LIABILITIES>                             154437
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        951477
<SHARES-COMMON-STOCK>                             1617<F1>
<SHARES-COMMON-PRIOR>                             1145<F1>
<ACCUMULATED-NII-CURRENT>                          296
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         68302
<ACCUM-APPREC-OR-DEPREC>                         45041
<NET-ASSETS>                                    928512
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                61807
<OTHER-INCOME>                                     280
<EXPENSES-NET>                                    5315
<NET-INVESTMENT-INCOME>                          56772
<REALIZED-GAINS-CURRENT>                       (13587)
<APPREC-INCREASE-CURRENT>                        21151
<NET-CHANGE-FROM-OPS>                            64336
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          803<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            705<F1>
<NUMBER-OF-SHARES-REDEEMED>                        295<F1>
<SHARES-REINVESTED>                                 62<F1>
<NET-CHANGE-IN-ASSETS>                          172560
<ACCUMULATED-NII-PRIOR>                            288
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                       54705
<GROSS-ADVISORY-FEES>                             5074
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   7035
<AVERAGE-NET-ASSETS>                             13785<F1>
<PER-SHARE-NAV-BEGIN>                             9.49<F1>
<PER-SHARE-NII>                                    .56<F1>
<PER-SHARE-GAIN-APPREC>                            .10<F1>
<PER-SHARE-DIVIDEND>                               .56<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               9.59<F1>
<EXPENSE-RATIO>                                   1.51<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 061
   <NAME> THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           487954
<INVESTMENTS-AT-VALUE>                          511831
<RECEIVABLES>                                    16813
<ASSETS-OTHER>                                       8
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  528652
<PAYABLE-FOR-SECURITIES>                         12545
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         2247
<TOTAL-LIABILITIES>                              14792
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        486040
<SHARES-COMMON-STOCK>                            44290<F1>
<SHARES-COMMON-PRIOR>                            41315<F1>
<ACCUMULATED-NII-CURRENT>                          233
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           3710
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         23877
<NET-ASSETS>                                    513860
<DIVIDEND-INCOME>                                   85
<INTEREST-INCOME>                                25820
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    3013
<NET-INVESTMENT-INCOME>                          22892
<REALIZED-GAINS-CURRENT>                          5307
<APPREC-INCREASE-CURRENT>                         7769
<NET-CHANGE-FROM-OPS>                            35968
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        22232<F1>
<DISTRIBUTIONS-OF-GAINS>                          3217<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          10053<F1>
<NUMBER-OF-SHARES-REDEEMED>                       7275<F1>
<SHARES-REINVESTED>                                197<F1>
<NET-CHANGE-IN-ASSETS>                           51007
<ACCUMULATED-NII-PRIOR>                            233
<ACCUMULATED-GAINS-PRIOR>                         1719
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2931
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4054
<AVERAGE-NET-ASSETS>                            473047<F1>
<PER-SHARE-NAV-BEGIN>                            10.92<F1>
<PER-SHARE-NII>                                    .52<F1>
<PER-SHARE-GAIN-APPREC>                            .31<F1>
<PER-SHARE-DIVIDEND>                               .52<F1>
<PER-SHARE-DISTRIBUTIONS>                          .08<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.15<F1>
<EXPENSE-RATIO>                                    .60<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 062
   <NAME> THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           487954
<INVESTMENTS-AT-VALUE>                          511831
<RECEIVABLES>                                    16813
<ASSETS-OTHER>                                       8
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  528652
<PAYABLE-FOR-SECURITIES>                         12545
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         2247
<TOTAL-LIABILITIES>                              14792
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        486040
<SHARES-COMMON-STOCK>                             1303<F1>
<SHARES-COMMON-PRIOR>                              775<F1>
<ACCUMULATED-NII-CURRENT>                          233
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           3710
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         23877
<NET-ASSETS>                                    513860
<DIVIDEND-INCOME>                                   85
<INTEREST-INCOME>                                25820
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    3013
<NET-INVESTMENT-INCOME>                          22892
<REALIZED-GAINS-CURRENT>                          5307
<APPREC-INCREASE-CURRENT>                         7769
<NET-CHANGE-FROM-OPS>                            35968
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          487<F1>
<DISTRIBUTIONS-OF-GAINS>                            68<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            705<F1>
<NUMBER-OF-SHARES-REDEEMED>                        214<F1>
<SHARES-REINVESTED>                                 37<F1>
<NET-CHANGE-IN-ASSETS>                           51007
<ACCUMULATED-NII-PRIOR>                            233
<ACCUMULATED-GAINS-PRIOR>                         1719
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2931
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4054
<AVERAGE-NET-ASSETS>                             10941<F1>
<PER-SHARE-NAV-BEGIN>                            10.91<F1>
<PER-SHARE-NII>                                    .50<F1>
<PER-SHARE-GAIN-APPREC>                            .31<F1>
<PER-SHARE-DIVIDEND>                               .50<F1>
<PER-SHARE-DISTRIBUTIONS>                          .08<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.14<F1>
<EXPENSE-RATIO>                                    .85<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 063
   <NAME> THE ONE GROUP INTERMEDIATE TAX-FREE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           487954
<INVESTMENTS-AT-VALUE>                          511831
<RECEIVABLES>                                    16813
<ASSETS-OTHER>                                       8
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  528652
<PAYABLE-FOR-SECURITIES>                         12545
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         2247
<TOTAL-LIABILITIES>                              14792
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        486040
<SHARES-COMMON-STOCK>                              508<F1>
<SHARES-COMMON-PRIOR>                              303<F1>
<ACCUMULATED-NII-CURRENT>                          233
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           3710
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         23877
<NET-ASSETS>                                    513860
<DIVIDEND-INCOME>                                   85
<INTEREST-INCOME>                                25820
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    3013
<NET-INVESTMENT-INCOME>                          22892
<REALIZED-GAINS-CURRENT>                          5307
<APPREC-INCREASE-CURRENT>                         7769
<NET-CHANGE-FROM-OPS>                            35968
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          173<F1>
<DISTRIBUTIONS-OF-GAINS>                            31<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2713<F1>
<NUMBER-OF-SHARES-REDEEMED>                        608<F1>
<SHARES-REINVESTED>                                166<F1>
<NET-CHANGE-IN-ASSETS>                           51007
<ACCUMULATED-NII-PRIOR>                            233
<ACCUMULATED-GAINS-PRIOR>                         1719
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2931
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4054
<AVERAGE-NET-ASSETS>                              4556<F1>
<PER-SHARE-NAV-BEGIN>                            10.93<F1>
<PER-SHARE-NII>                                    .43<F1>
<PER-SHARE-GAIN-APPREC>                            .31<F1>
<PER-SHARE-DIVIDEND>                               .43<F1>
<PER-SHARE-DISTRIBUTIONS>                          .08<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.16<F1>
<EXPENSE-RATIO>                                   1.50<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 071
   <NAME> THE ONE GROUP DISCIPLINED VALUE FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           650635
<INVESTMENTS-AT-VALUE>                          758708
<RECEIVABLES>                                    75793
<ASSETS-OTHER>                                     207
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  834708
<PAYABLE-FOR-SECURITIES>                         79792
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        60707
<TOTAL-LIABILITIES>                             140499
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        501412
<SHARES-COMMON-STOCK>                            37560<F1>
<SHARES-COMMON-PRIOR>                            35922<F1>
<ACCUMULATED-NII-CURRENT>                            1
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          84723
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        108073
<NET-ASSETS>                                    694209
<DIVIDEND-INCOME>                                10584
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     251
<EXPENSES-NET>                                    6505
<NET-INVESTMENT-INCOME>                           5151
<REALIZED-GAINS-CURRENT>                        141237
<APPREC-INCREASE-CURRENT>                         9794
<NET-CHANGE-FROM-OPS>                           156182
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         4991<F1>
<DISTRIBUTIONS-OF-GAINS>                         91826<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           8280<F1>
<NUMBER-OF-SHARES-REDEEMED>                       9567<F1>
<SHARES-REINVESTED>                               2926<F1>
<NET-CHANGE-IN-ASSETS>                           87499
<ACCUMULATED-NII-PRIOR>                             17
<ACCUMULATED-GAINS-PRIOR>                        43452
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4759
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6533
<AVERAGE-NET-ASSETS>                            589478<F1>
<PER-SHARE-NAV-BEGIN>                            15.65<F1>
<PER-SHARE-NII>                                    .14<F1>
<PER-SHARE-GAIN-APPREC>                           3.99<F1>
<PER-SHARE-DIVIDEND>                               .14<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.74<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              16.90<F1>
<EXPENSE-RATIO>                                    .96<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 072
   <NAME> THE ONE GROUP DISCIPLINED VALUE FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           650635
<INVESTMENTS-AT-VALUE>                          758708
<RECEIVABLES>                                    75793
<ASSETS-OTHER>                                     207
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  834708
<PAYABLE-FOR-SECURITIES>                         79792
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        60707
<TOTAL-LIABILITIES>                             140499
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        501412
<SHARES-COMMON-STOCK>                             1739<F1>
<SHARES-COMMON-PRIOR>                             1525<F1>
<ACCUMULATED-NII-CURRENT>                            1
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          84723
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        108073
<NET-ASSETS>                                    694209
<DIVIDEND-INCOME>                                10584
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     251
<EXPENSES-NET>                                    6505
<NET-INVESTMENT-INCOME>                           5151
<REALIZED-GAINS-CURRENT>                        141237
<APPREC-INCREASE-CURRENT>                         9794
<NET-CHANGE-FROM-OPS>                           156182
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          169<F1>
<DISTRIBUTIONS-OF-GAINS>                          4398<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            481<F1>
<NUMBER-OF-SHARES-REDEEMED>                        544<F1>
<SHARES-REINVESTED>                                277<F1>
<NET-CHANGE-IN-ASSETS>                           87499
<ACCUMULATED-NII-PRIOR>                             17
<ACCUMULATED-GAINS-PRIOR>                        43452
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4759
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6533
<AVERAGE-NET-ASSETS>                             28438<F1>
<PER-SHARE-NAV-BEGIN>                            15.68<F1>
<PER-SHARE-NII>                                    .10<F1>
<PER-SHARE-GAIN-APPREC>                           3.99<F1>
<PER-SHARE-DIVIDEND>                               .10<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.74<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              16.93<F1>
<EXPENSE-RATIO>                                   1.21<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 073
   <NAME> THE ONE GROUP DISCIPLINED VALUE FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           650635
<INVESTMENTS-AT-VALUE>                          758708
<RECEIVABLES>                                    75793
<ASSETS-OTHER>                                     207
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  834708
<PAYABLE-FOR-SECURITIES>                         79792
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        60707
<TOTAL-LIABILITIES>                             140499
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        501412
<SHARES-COMMON-STOCK>                             1786<F1>
<SHARES-COMMON-PRIOR>                             1310<F1>
<ACCUMULATED-NII-CURRENT>                            1
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          84723
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        108073
<NET-ASSETS>                                    694209
<DIVIDEND-INCOME>                                10584
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     251
<EXPENSES-NET>                                    6505
<NET-INVESTMENT-INCOME>                           5151
<REALIZED-GAINS-CURRENT>                        141237
<APPREC-INCREASE-CURRENT>                         9794
<NET-CHANGE-FROM-OPS>                           156182
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            7<F1>
<DISTRIBUTIONS-OF-GAINS>                          3742<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            428<F1>
<NUMBER-OF-SHARES-REDEEMED>                        185<F1>
<SHARES-REINVESTED>                                232<F1>
<NET-CHANGE-IN-ASSETS>                           87499
<ACCUMULATED-NII-PRIOR>                             17
<ACCUMULATED-GAINS-PRIOR>                        43452
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4759
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6533
<AVERAGE-NET-ASSETS>                             25396<F1>
<PER-SHARE-NAV-BEGIN>                            15.64<F1>
<PER-SHARE-NII>                                    .02<F1>
<PER-SHARE-GAIN-APPREC>                           3.98<F1>
<PER-SHARE-DIVIDEND>                               .01<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.74<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              16.85<F1>
<EXPENSE-RATIO>                                   1.96<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 081
   <NAME> THE ONE GROUP GROWTH OPPORTUNITIES FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1037010
<INVESTMENTS-AT-VALUE>                         1247159
<RECEIVABLES>                                   111373
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1358538
<PAYABLE-FOR-SECURITIES>                         94767
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       207205
<TOTAL-LIABILITIES>                             301972
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780252
<SHARES-COMMON-STOCK>                            38597<F1>
<SHARES-COMMON-PRIOR>                            32061<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          66165
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        210149
<NET-ASSETS>                                   1056566
<DIVIDEND-INCOME>                                 4269
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     593
<EXPENSES-NET>                                    9621
<NET-INVESTMENT-INCOME>                         (3938)
<REALIZED-GAINS-CURRENT>                        140625
<APPREC-INCREASE-CURRENT>                        99487
<NET-CHANGE-FROM-OPS>                           236174
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                         80645<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          12846<F1>
<NUMBER-OF-SHARES-REDEEMED>                       8883<F1>
<SHARES-REINVESTED>                               2574<F1>
<NET-CHANGE-IN-ASSETS>                          351876
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        24450
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6492
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9688
<AVERAGE-NET-ASSETS>                            746578<F1>
<PER-SHARE-NAV-BEGIN>                            19.46<F1>
<PER-SHARE-NII>                                  (.07)<F1>
<PER-SHARE-GAIN-APPREC>                           5.70<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.58<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              22.51<F1>
<EXPENSE-RATIO>                                   1.00<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 082
   <NAME> THE ONE GROUP GROWTH OPPORTUNITIES FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1037010
<INVESTMENTS-AT-VALUE>                         1247159
<RECEIVABLES>                                   111373
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1358538
<PAYABLE-FOR-SECURITIES>                         94767
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       207205
<TOTAL-LIABILITIES>                             301972
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780252
<SHARES-COMMON-STOCK>                             4278<F1>
<SHARES-COMMON-PRIOR>                             2239<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          66165
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        210149
<NET-ASSETS>                                   1056566
<DIVIDEND-INCOME>                                 4269
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     593
<EXPENSES-NET>                                    9621
<NET-INVESTMENT-INCOME>                         (3938)
<REALIZED-GAINS-CURRENT>                        140625
<APPREC-INCREASE-CURRENT>                        99487
<NET-CHANGE-FROM-OPS>                           236174
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                          7223<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2614<F1>
<NUMBER-OF-SHARES-REDEEMED>                        940<F1>
<SHARES-REINVESTED>                                365<F1>
<NET-CHANGE-IN-ASSETS>                          351876
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        24450
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6492
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9688
<AVERAGE-NET-ASSETS>                             67583<F1>
<PER-SHARE-NAV-BEGIN>                            19.37<F1>
<PER-SHARE-NII>                                  (.08)<F1>
<PER-SHARE-GAIN-APPREC>                           5.65<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.58<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              22.36<F1>
<EXPENSE-RATIO>                                   1.25<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 083
   <NAME> THE ONE GROUP GROWTH OPPORTUNITIES FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1037010
<INVESTMENTS-AT-VALUE>                         1247159
<RECEIVABLES>                                   111373
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1358538
<PAYABLE-FOR-SECURITIES>                         94767
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       207205
<TOTAL-LIABILITIES>                             301972
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780252
<SHARES-COMMON-STOCK>                             4242<F1>
<SHARES-COMMON-PRIOR>                             1988<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          66165
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        210149
<NET-ASSETS>                                   1056566
<DIVIDEND-INCOME>                                 4269
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     593
<EXPENSES-NET>                                    9621
<NET-INVESTMENT-INCOME>                         (3938)
<REALIZED-GAINS-CURRENT>                        140625
<APPREC-INCREASE-CURRENT>                        99487
<NET-CHANGE-FROM-OPS>                           236174
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                          7104<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2183<F1>
<NUMBER-OF-SHARES-REDEEMED>                        304<F1>
<SHARES-REINVESTED>                                375<F1>
<NET-CHANGE-IN-ASSETS>                          351876
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        24450
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6492
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9688
<AVERAGE-NET-ASSETS>                             64022<F1>
<PER-SHARE-NAV-BEGIN>                            18.82<F1>
<PER-SHARE-NII>                                  (.15)<F1>
<PER-SHARE-GAIN-APPREC>                           5.35<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.58<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              21.44<F1>
<EXPENSE-RATIO>                                   2.00<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 084
   <NAME> THE ONE GROUP GROWTH OPPORTUNITIES FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1037010
<INVESTMENTS-AT-VALUE>                         1247159
<RECEIVABLES>                                   111373
<ASSETS-OTHER>                                       6
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1358538
<PAYABLE-FOR-SECURITIES>                         94767
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       207205
<TOTAL-LIABILITIES>                             301972
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780252
<SHARES-COMMON-STOCK>                               49<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          66165
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        210149
<NET-ASSETS>                                   1056566
<DIVIDEND-INCOME>                                 4269
<INTEREST-INCOME>                                  821
<OTHER-INCOME>                                     593
<EXPENSES-NET>                                    9621
<NET-INVESTMENT-INCOME>                         (3938)
<REALIZED-GAINS-CURRENT>                        140625
<APPREC-INCREASE-CURRENT>                        99487
<NET-CHANGE-FROM-OPS>                           236174
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                             48<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          351876
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        24450
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             6492
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9688
<AVERAGE-NET-ASSETS>                               141<F1>
<PER-SHARE-NAV-BEGIN>                            21.47<F1>
<PER-SHARE-NII>                                  (.04)<F1>
<PER-SHARE-GAIN-APPREC>                           2.77<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.78<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              22.42<F1>
<EXPENSE-RATIO>                                   2.01<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 101
   <NAME> THE ONE GROUP LIMITED VOLATILITY BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           654845
<INVESTMENTS-AT-VALUE>                          664245
<RECEIVABLES>                                     7262
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  671512
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        58410
<TOTAL-LIABILITIES>                              58410
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        617656
<SHARES-COMMON-STOCK>                            56405<F1>
<SHARES-COMMON-PRIOR>                            53876<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             246
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         13708
<ACCUM-APPREC-OR-DEPREC>                          9400
<NET-ASSETS>                                    613102
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                38915
<OTHER-INCOME>                                     144
<EXPENSES-NET>                                    3245
<NET-INVESTMENT-INCOME>                          35814
<REALIZED-GAINS-CURRENT>                        (2526)
<APPREC-INCREASE-CURRENT>                         4699
<NET-CHANGE-FROM-OPS>                            37987
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        34511<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          15071<F1>
<NUMBER-OF-SHARES-REDEEMED>                      12655<F1>
<SHARES-REINVESTED>                                113<F1>
<NET-CHANGE-IN-ASSETS>                           24148
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            246
<OVERDIST-NET-GAINS-PRIOR>                       11182
<GROSS-ADVISORY-FEES>                             3580
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4975
<AVERAGE-NET-ASSETS>                            573871<F1>
<PER-SHARE-NAV-BEGIN>                            10.47<F1>
<PER-SHARE-NII>                                    .63<F1>
<PER-SHARE-GAIN-APPREC>                            .04<F1>
<PER-SHARE-DIVIDEND>                               .63<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.51<F1>
<EXPENSE-RATIO>                                    .53<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 102
   <NAME> THE ONE GROUP LIMITED VOLATILITY BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           654845
<INVESTMENTS-AT-VALUE>                          664245
<RECEIVABLES>                                     7262
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  671512
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        58410
<TOTAL-LIABILITIES>                              58410
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        617656
<SHARES-COMMON-STOCK>                             1483<F1>
<SHARES-COMMON-PRIOR>                             1918<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             246
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         13708
<ACCUM-APPREC-OR-DEPREC>                          9400
<NET-ASSETS>                                    613102
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                38915
<OTHER-INCOME>                                     144
<EXPENSES-NET>                                    3245
<NET-INVESTMENT-INCOME>                          35814
<REALIZED-GAINS-CURRENT>                        (2526)
<APPREC-INCREASE-CURRENT>                         4699
<NET-CHANGE-FROM-OPS>                            37987
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1040<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            276<F1>
<NUMBER-OF-SHARES-REDEEMED>                        779<F1>
<SHARES-REINVESTED>                                 69<F1>
<NET-CHANGE-IN-ASSETS>                           24148
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            246
<OVERDIST-NET-GAINS-PRIOR>                       11182
<GROSS-ADVISORY-FEES>                             3580
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4975
<AVERAGE-NET-ASSETS>                             18013<F1>
<PER-SHARE-NAV-BEGIN>                            10.46<F1>
<PER-SHARE-NII>                                    .61<F1>
<PER-SHARE-GAIN-APPREC>                            .04<F1>
<PER-SHARE-DIVIDEND>                               .61<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.50<F1>
<EXPENSE-RATIO>                                    .78<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 103
   <NAME> THE ONE GROUP LIMITED VOLATILITY BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           654845
<INVESTMENTS-AT-VALUE>                          664245
<RECEIVABLES>                                     7262
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  671512
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        58410
<TOTAL-LIABILITIES>                              58410
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        617656
<SHARES-COMMON-STOCK>                              459<F1>
<SHARES-COMMON-PRIOR>                              466<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             246
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         13708
<ACCUM-APPREC-OR-DEPREC>                          9400
<NET-ASSETS>                                    613102
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                38915
<OTHER-INCOME>                                     144
<EXPENSES-NET>                                    3245
<NET-INVESTMENT-INCOME>                          35814
<REALIZED-GAINS-CURRENT>                        (2526)
<APPREC-INCREASE-CURRENT>                         4699
<NET-CHANGE-FROM-OPS>                            37987
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          263<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                             82<F1>
<NUMBER-OF-SHARES-REDEEMED>                        111<F1>
<SHARES-REINVESTED>                                 22<F1>
<NET-CHANGE-IN-ASSETS>                           24148
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            246
<OVERDIST-NET-GAINS-PRIOR>                       11182
<GROSS-ADVISORY-FEES>                             3580
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4975
<AVERAGE-NET-ASSETS>                              4845<F1>
<PER-SHARE-NAV-BEGIN>                            10.53<F1>
<PER-SHARE-NII>                                    .58<F1>
<PER-SHARE-GAIN-APPREC>                            .04<F1>
<PER-SHARE-DIVIDEND>                               .58<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.57<F1>
<EXPENSE-RATIO>                                   1.11<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 111
   <NAME> THE ONE GROUP EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           914982
<INVESTMENTS-AT-VALUE>                         1358421
<RECEIVABLES>                                     7711
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1366136
<PAYABLE-FOR-SECURITIES>                          4321
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       117037
<TOTAL-LIABILITIES>                             121358
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780024
<SHARES-COMMON-STOCK>                            24719<F1>
<SHARES-COMMON-PRIOR>                            22055<F1>
<ACCUMULATED-NII-CURRENT>                           88
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          20942
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        443724
<NET-ASSETS>                                   1244778
<DIVIDEND-INCOME>                                15277
<INTEREST-INCOME>                                 1531
<OTHER-INCOME>                                     210
<EXPENSES-NET>                                    6393
<NET-INVESTMENT-INCOME>                          10625
<REALIZED-GAINS-CURRENT>                         26070
<APPREC-INCREASE-CURRENT>                       216751
<NET-CHANGE-FROM-OPS>                           253446
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         7794<F1>
<DISTRIBUTIONS-OF-GAINS>                         14824<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           8081<F1>
<NUMBER-OF-SHARES-REDEEMED>                       5630<F1>
<SHARES-REINVESTED>                                212<F1>
<NET-CHANGE-IN-ASSETS>                          496922
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        18873
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2978
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9167
<AVERAGE-NET-ASSETS>                            584942<F1>
<PER-SHARE-NAV-BEGIN>                            21.80<F1>
<PER-SHARE-NII>                                    .33<F1>
<PER-SHARE-GAIN-APPREC>                           5.98<F1>
<PER-SHARE-DIVIDEND>                               .32<F1>
<PER-SHARE-DISTRIBUTIONS>                          .63<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              27.16<F1>
<EXPENSE-RATIO>                                    .35<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 112
   <NAME> THE ONE GROUP EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           914982
<INVESTMENTS-AT-VALUE>                         1358421
<RECEIVABLES>                                     7711
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1366136
<PAYABLE-FOR-SECURITIES>                          4321
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       117037
<TOTAL-LIABILITIES>                             121358
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780024
<SHARES-COMMON-STOCK>                             8049<F1>
<SHARES-COMMON-PRIOR>                             4510<F1>
<ACCUMULATED-NII-CURRENT>                           88
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          20942
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        443724
<NET-ASSETS>                                   1244778
<DIVIDEND-INCOME>                                15277
<INTEREST-INCOME>                                 1531
<OTHER-INCOME>                                     210
<EXPENSES-NET>                                    6393
<NET-INVESTMENT-INCOME>                          10625
<REALIZED-GAINS-CURRENT>                         26070
<APPREC-INCREASE-CURRENT>                       216751
<NET-CHANGE-FROM-OPS>                           253446
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1688<F1>
<DISTRIBUTIONS-OF-GAINS>                          3454<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           4740<F1>
<NUMBER-OF-SHARES-REDEEMED>                       1415<F1>
<SHARES-REINVESTED>                                213<F1>
<NET-CHANGE-IN-ASSETS>                          496922
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        18873
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2978
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9167
<AVERAGE-NET-ASSETS>                            155788<F1>
<PER-SHARE-NAV-BEGIN>                            21.81<F1>
<PER-SHARE-NII>                                    .26<F1>
<PER-SHARE-GAIN-APPREC>                           5.97<F1>
<PER-SHARE-DIVIDEND>                               .26<F1>
<PER-SHARE-DISTRIBUTIONS>                          .63<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              27.15<F1>
<EXPENSE-RATIO>                                    .60<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 113
   <NAME> THE ONE GROUP EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           914982
<INVESTMENTS-AT-VALUE>                         1358421
<RECEIVABLES>                                     7711
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1366136
<PAYABLE-FOR-SECURITIES>                          4321
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       117037
<TOTAL-LIABILITIES>                             121358
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780024
<SHARES-COMMON-STOCK>                            12959<F1>
<SHARES-COMMON-PRIOR>                             7737<F1>
<ACCUMULATED-NII-CURRENT>                           88
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          20942
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        443724
<NET-ASSETS>                                   1244778
<DIVIDEND-INCOME>                                15277
<INTEREST-INCOME>                                 1531
<OTHER-INCOME>                                     210
<EXPENSES-NET>                                    6393
<NET-INVESTMENT-INCOME>                          10625
<REALIZED-GAINS-CURRENT>                         26070
<APPREC-INCREASE-CURRENT>                       216751
<NET-CHANGE-FROM-OPS>                           253446
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1052<F1>
<DISTRIBUTIONS-OF-GAINS>                          5722<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           5913<F1>
<NUMBER-OF-SHARES-REDEEMED>                        984<F1>
<SHARES-REINVESTED>                                294<F1>
<NET-CHANGE-IN-ASSETS>                          496922
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        18873
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2978
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9167
<AVERAGE-NET-ASSETS>                            252732<F1>
<PER-SHARE-NAV-BEGIN>                            21.80<F1>
<PER-SHARE-NII>                                    .10<F1>
<PER-SHARE-GAIN-APPREC>                           5.97<F1>
<PER-SHARE-DIVIDEND>                               .11<F1>
<PER-SHARE-DISTRIBUTIONS>                          .63<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              27.13<F1>
<EXPENSE-RATIO>                                   1.35<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 114
   <NAME> THE ONE GROUP EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           914982
<INVESTMENTS-AT-VALUE>                         1358421
<RECEIVABLES>                                     7711
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 1366136
<PAYABLE-FOR-SECURITIES>                          4321
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       117037
<TOTAL-LIABILITIES>                             121358
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        780024
<SHARES-COMMON-STOCK>                              118<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                           88
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          20942
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        443724
<NET-ASSETS>                                   1244778
<DIVIDEND-INCOME>                                15277
<INTEREST-INCOME>                                 1531
<OTHER-INCOME>                                     210
<EXPENSES-NET>                                    6393
<NET-INVESTMENT-INCOME>                          10625
<REALIZED-GAINS-CURRENT>                         26070
<APPREC-INCREASE-CURRENT>                       216751
<NET-CHANGE-FROM-OPS>                           253446
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            3<F1>
<DISTRIBUTIONS-OF-GAINS>                             1<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            121<F1>
<NUMBER-OF-SHARES-REDEEMED>                          2<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          496922
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        18873
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2978
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   9167
<AVERAGE-NET-ASSETS>                               576<F1>
<PER-SHARE-NAV-BEGIN>                            22.60<F1>
<PER-SHARE-NII>                                    .07<F1>
<PER-SHARE-GAIN-APPREC>                           4.67<F1>
<PER-SHARE-DIVIDEND>                               .08<F1>
<PER-SHARE-DISTRIBUTIONS>                          .12<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              27.14<F1>
<EXPENSE-RATIO>                                   1.35<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 121
   <NAME> THE ONE GROUP LARGE COMPANY VALUE FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           708580
<INVESTMENTS-AT-VALUE>                          903968
<RECEIVABLES>                                     4877
<ASSETS-OTHER>                                    3940
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  912785
<PAYABLE-FOR-SECURITIES>                          2598
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        84685
<TOTAL-LIABILITIES>                              87283
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        586115
<SHARES-COMMON-STOCK>                            47474<F1>
<SHARES-COMMON-PRIOR>                            46382<F1>
<ACCUMULATED-NII-CURRENT>                           42
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          43938
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        195407
<NET-ASSETS>                                    825502
<DIVIDEND-INCOME>                                15254
<INTEREST-INCOME>                                 2012
<OTHER-INCOME>                                     154
<EXPENSES-NET>                                    7391
<NET-INVESTMENT-INCOME>                          10029
<REALIZED-GAINS-CURRENT>                         71328
<APPREC-INCREASE-CURRENT>                        66164
<NET-CHANGE-FROM-OPS>                           147521
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         9741<F1>
<DISTRIBUTIONS-OF-GAINS>                         41719<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           8011<F1>
<NUMBER-OF-SHARES-REDEEMED>                       8381<F1>
<SHARES-REINVESTED>                               1462<F1>
<NET-CHANGE-IN-ASSETS>                          115226
<ACCUMULATED-NII-PRIOR>                              1
<ACCUMULATED-GAINS-PRIOR>                        16029
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             5638
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   7408
<AVERAGE-NET-ASSETS>                            732444<F1>
<PER-SHARE-NAV-BEGIN>                            14.79<F1>
<PER-SHARE-NII>                                    .21<F1>
<PER-SHARE-GAIN-APPREC>                           2.84<F1>
<PER-SHARE-DIVIDEND>                               .21<F1>
<PER-SHARE-DISTRIBUTIONS>                          .93<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              16.70<F1>
<EXPENSE-RATIO>                                    .95<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 122
   <NAME> THE ONE GROUP LARGE COMPANY VALUE FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           708580
<INVESTMENTS-AT-VALUE>                          903968
<RECEIVABLES>                                     4877
<ASSETS-OTHER>                                    3940
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  912785
<PAYABLE-FOR-SECURITIES>                          2598
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        84685
<TOTAL-LIABILITIES>                              87283
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        586115
<SHARES-COMMON-STOCK>                              936<F1>
<SHARES-COMMON-PRIOR>                              999<F1>
<ACCUMULATED-NII-CURRENT>                           42
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          43938
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        195407
<NET-ASSETS>                                    825502
<DIVIDEND-INCOME>                                15254
<INTEREST-INCOME>                                 2012
<OTHER-INCOME>                                     154
<EXPENSES-NET>                                    7391
<NET-INVESTMENT-INCOME>                          10029
<REALIZED-GAINS-CURRENT>                         71328
<APPREC-INCREASE-CURRENT>                        66164
<NET-CHANGE-FROM-OPS>                           147521
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          177<F1>
<DISTRIBUTIONS-OF-GAINS>                          1000<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            712<F1>
<NUMBER-OF-SHARES-REDEEMED>                        849<F1>
<SHARES-REINVESTED>                                 75<F1>
<NET-CHANGE-IN-ASSETS>                          115226
<ACCUMULATED-NII-PRIOR>                              1
<ACCUMULATED-GAINS-PRIOR>                        16029
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             5638
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   7408
<AVERAGE-NET-ASSETS>                             16628<F1>
<PER-SHARE-NAV-BEGIN>                            14.85<F1>
<PER-SHARE-NII>                                    .18<F1>
<PER-SHARE-GAIN-APPREC>                           2.84<F1>
<PER-SHARE-DIVIDEND>                               .17<F1>
<PER-SHARE-DISTRIBUTIONS>                          .93<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              16.77<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 123
   <NAME> THE ONE GROUP LARGE COMPANY VALUE FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           708580
<INVESTMENTS-AT-VALUE>                          903968
<RECEIVABLES>                                     4877
<ASSETS-OTHER>                                    3940
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  912785
<PAYABLE-FOR-SECURITIES>                          2598
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        84685
<TOTAL-LIABILITIES>                              87283
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        586115
<SHARES-COMMON-STOCK>                             1019<F1>
<SHARES-COMMON-PRIOR>                              621<F1>
<ACCUMULATED-NII-CURRENT>                           42
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          43938
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        195407
<NET-ASSETS>                                    825502
<DIVIDEND-INCOME>                                15254
<INTEREST-INCOME>                                 2012
<OTHER-INCOME>                                     154
<EXPENSES-NET>                                    7391
<NET-INVESTMENT-INCOME>                          10029
<REALIZED-GAINS-CURRENT>                         71328
<APPREC-INCREASE-CURRENT>                        66164
<NET-CHANGE-FROM-OPS>                           147521
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           70<F1>
<DISTRIBUTIONS-OF-GAINS>                           700<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            475<F1>
<NUMBER-OF-SHARES-REDEEMED>                        127<F1>
<SHARES-REINVESTED>                                 49<F1>
<NET-CHANGE-IN-ASSETS>                          115226
<ACCUMULATED-NII-PRIOR>                              1
<ACCUMULATED-GAINS-PRIOR>                        16029
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             5638
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   7408
<AVERAGE-NET-ASSETS>                             13179<F1>
<PER-SHARE-NAV-BEGIN>                            14.95<F1>
<PER-SHARE-NII>                                    .07<F1>
<PER-SHARE-GAIN-APPREC>                           2.84<F1>
<PER-SHARE-DIVIDEND>                               .09<F1>
<PER-SHARE-DISTRIBUTIONS>                          .93<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              16.84<F1>
<EXPENSE-RATIO>                                   1.95<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 131
   <NAME> THE ONE GROUP OHIO MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           180818
<INVESTMENTS-AT-VALUE>                          193224
<RECEIVABLES>                                     2072
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  195301
<PAYABLE-FOR-SECURITIES>                          1022
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          954
<TOTAL-LIABILITIES>                               1976
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        184798
<SHARES-COMMON-STOCK>                            13533<F1>
<SHARES-COMMON-PRIOR>                            12245<F1>
<ACCUMULATED-NII-CURRENT>                            5
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          3884
<ACCUM-APPREC-OR-DEPREC>                         12406
<NET-ASSETS>                                    193325
<DIVIDEND-INCOME>                                   64
<INTEREST-INCOME>                                 9907
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1174
<NET-INVESTMENT-INCOME>                           8797
<REALIZED-GAINS-CURRENT>                           257
<APPREC-INCREASE-CURRENT>                         2911
<NET-CHANGE-FROM-OPS>                            11965
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         7209<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3381<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2097<F1>
<SHARES-REINVESTED>                                  4<F1>
<NET-CHANGE-IN-ASSETS>                           29723
<ACCUMULATED-NII-PRIOR>                              5
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        4141
<GROSS-ADVISORY-FEES>                             1063
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1726
<AVERAGE-NET-ASSETS>                            141796<F1>
<PER-SHARE-NAV-BEGIN>                            10.88<F1>
<PER-SHARE-NII>                                    .56<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .56<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.08<F1>
<EXPENSE-RATIO>                                    .54<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 132
   <NAME> THE ONE GROUP OHIO MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           180818
<INVESTMENTS-AT-VALUE>                          193224
<RECEIVABLES>                                     2072
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  195301
<PAYABLE-FOR-SECURITIES>                          1022
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          954
<TOTAL-LIABILITIES>                               1976
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        184798
<SHARES-COMMON-STOCK>                             1557<F1>
<SHARES-COMMON-PRIOR>                             1478<F1>
<ACCUMULATED-NII-CURRENT>                            5
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          3884
<ACCUM-APPREC-OR-DEPREC>                         12406
<NET-ASSETS>                                    193325
<DIVIDEND-INCOME>                                   64
<INTEREST-INCOME>                                 9907
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1174
<NET-INVESTMENT-INCOME>                           8797
<REALIZED-GAINS-CURRENT>                           257
<APPREC-INCREASE-CURRENT>                         2911
<NET-CHANGE-FROM-OPS>                            11965
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          794<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            513<F1>
<NUMBER-OF-SHARES-REDEEMED>                        491<F1>
<SHARES-REINVESTED>                                 57<F1>
<NET-CHANGE-IN-ASSETS>                           29723
<ACCUMULATED-NII-PRIOR>                              5
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        4141
<GROSS-ADVISORY-FEES>                             1063
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1726
<AVERAGE-NET-ASSETS>                             16436<F1>
<PER-SHARE-NAV-BEGIN>                            10.91<F1>
<PER-SHARE-NII>                                    .54<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .54<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.11<F1>
<EXPENSE-RATIO>                                    .79<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 133
   <NAME> THE ONE GROUP OHIO MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           180818
<INVESTMENTS-AT-VALUE>                          193224
<RECEIVABLES>                                     2072
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  195301
<PAYABLE-FOR-SECURITIES>                          1022
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          954
<TOTAL-LIABILITIES>                               1976
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        184798
<SHARES-COMMON-STOCK>                             2337<F1>
<SHARES-COMMON-PRIOR>                             1304<F1>
<ACCUMULATED-NII-CURRENT>                            5
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          3884
<ACCUM-APPREC-OR-DEPREC>                         12406
<NET-ASSETS>                                    193325
<DIVIDEND-INCOME>                                   64
<INTEREST-INCOME>                                 9907
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1174
<NET-INVESTMENT-INCOME>                           8797
<REALIZED-GAINS-CURRENT>                           257
<APPREC-INCREASE-CURRENT>                         2911
<NET-CHANGE-FROM-OPS>                            11965
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          794<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1281<F1>
<NUMBER-OF-SHARES-REDEEMED>                        301<F1>
<SHARES-REINVESTED>                                 53<F1>
<NET-CHANGE-IN-ASSETS>                           29723
<ACCUMULATED-NII-PRIOR>                              5
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        4141
<GROSS-ADVISORY-FEES>                             1063
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1726
<AVERAGE-NET-ASSETS>                             18998<F1>
<PER-SHARE-NAV-BEGIN>                            10.98<F1>
<PER-SHARE-NII>                                    .47<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .47<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.18<F1>
<EXPENSE-RATIO>                                   1.44<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 141
   <NAME> THE ONE GROUP INTERNATIONAL EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           579126
<INVESTMENTS-AT-VALUE>                          712628
<RECEIVABLES>                                     3403
<ASSETS-OTHER>                                    2392
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  718423
<PAYABLE-FOR-SECURITIES>                           594
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        93602
<TOTAL-LIABILITIES>                              94196
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        496208
<SHARES-COMMON-STOCK>                            32647<F1>
<SHARES-COMMON-PRIOR>                            26634<F1>
<ACCUMULATED-NII-CURRENT>                         3162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          9033
<ACCUM-APPREC-OR-DEPREC>                        133890
<NET-ASSETS>                                    624227
<DIVIDEND-INCOME>                                11893
<INTEREST-INCOME>                                  497
<OTHER-INCOME>                                  (1356)
<EXPENSES-NET>                                    4637
<NET-INVESTMENT-INCOME>                           6397
<REALIZED-GAINS-CURRENT>                           172
<APPREC-INCREASE-CURRENT>                        43167
<NET-CHANGE-FROM-OPS>                            49736
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          623<F1>
<DISTRIBUTIONS-OF-GAINS>                         12040<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          10217<F1>
<NUMBER-OF-SHARES-REDEEMED>                       4685<F1>
<SHARES-REINVESTED>                                481<F1>
<NET-CHANGE-IN-ASSETS>                          151683
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3571
<OVERDISTRIB-NII-PRIOR>                           2608
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2791
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4654
<AVERAGE-NET-ASSETS>                            479725<F1>
<PER-SHARE-NAV-BEGIN>                            16.89<F1>
<PER-SHARE-NII>                                    .21<F1>
<PER-SHARE-GAIN-APPREC>                           1.32<F1>
<PER-SHARE-DIVIDEND>                               .02<F1>
<PER-SHARE-DISTRIBUTIONS>                          .43<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              17.97<F1>
<EXPENSE-RATIO>                                    .88<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 142
   <NAME> THE ONE GROUP INTERNATIONAL EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           579126
<INVESTMENTS-AT-VALUE>                          712628
<RECEIVABLES>                                     3403
<ASSETS-OTHER>                                    2392
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  718423
<PAYABLE-FOR-SECURITIES>                           594
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        93602
<TOTAL-LIABILITIES>                              94196
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        496208
<SHARES-COMMON-STOCK>                             1337<F1>
<SHARES-COMMON-PRIOR>                              743<F1>
<ACCUMULATED-NII-CURRENT>                         3162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          9033
<ACCUM-APPREC-OR-DEPREC>                        133890
<NET-ASSETS>                                    624227
<DIVIDEND-INCOME>                                11893
<INTEREST-INCOME>                                  497
<OTHER-INCOME>                                  (1356)
<EXPENSES-NET>                                    4637
<NET-INVESTMENT-INCOME>                           6397
<REALIZED-GAINS-CURRENT>                           172
<APPREC-INCREASE-CURRENT>                        43167
<NET-CHANGE-FROM-OPS>                            49736
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            4<F1>
<DISTRIBUTIONS-OF-GAINS>                           435<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1376<F1>
<NUMBER-OF-SHARES-REDEEMED>                        816<F1>
<SHARES-REINVESTED>                                 34<F1>
<NET-CHANGE-IN-ASSETS>                          151683
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3571
<OVERDISTRIB-NII-PRIOR>                           2608
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2791
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4654
<AVERAGE-NET-ASSETS>                             16668<F1>
<PER-SHARE-NAV-BEGIN>                            16.92<F1>
<PER-SHARE-NII>                                    .19<F1>
<PER-SHARE-GAIN-APPREC>                           1.31<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                          .43<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              17.99<F1>
<EXPENSE-RATIO>                                   1.13<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 143
   <NAME> THE ONE GROUP INTERNATIONAL EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           579126
<INVESTMENTS-AT-VALUE>                          712628
<RECEIVABLES>                                     3403
<ASSETS-OTHER>                                    2392
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  718423
<PAYABLE-FOR-SECURITIES>                           594
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        93602
<TOTAL-LIABILITIES>                              94196
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        496208
<SHARES-COMMON-STOCK>                              768<F1>
<SHARES-COMMON-PRIOR>                              610<F1>
<ACCUMULATED-NII-CURRENT>                         3162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          9033
<ACCUM-APPREC-OR-DEPREC>                        133890
<NET-ASSETS>                                    624227
<DIVIDEND-INCOME>                                11893
<INTEREST-INCOME>                                  497
<OTHER-INCOME>                                  (1356)
<EXPENSES-NET>                                    4637
<NET-INVESTMENT-INCOME>                           6397
<REALIZED-GAINS-CURRENT>                           172
<APPREC-INCREASE-CURRENT>                        43167
<NET-CHANGE-FROM-OPS>                            49736
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                           301<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            268<F1>
<NUMBER-OF-SHARES-REDEEMED>                        134<F1>
<SHARES-REINVESTED>                                 24<F1>
<NET-CHANGE-IN-ASSETS>                          151683
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3571
<OVERDISTRIB-NII-PRIOR>                           2608
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2791
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4654
<AVERAGE-NET-ASSETS>                             11406<F1>
<PER-SHARE-NAV-BEGIN>                            16.44<F1>
<PER-SHARE-NII>                                    .08<F1>
<PER-SHARE-GAIN-APPREC>                           1.24<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                          .43<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              17.33<F1>
<EXPENSE-RATIO>                                   1.88<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 144
   <NAME> THE ONE GROUP INTERNATIONAL EQUITY INDEX FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           579126
<INVESTMENTS-AT-VALUE>                          712628
<RECEIVABLES>                                     3403
<ASSETS-OTHER>                                    2392
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  718423
<PAYABLE-FOR-SECURITIES>                           594
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        93602
<TOTAL-LIABILITIES>                              94196
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        496208
<SHARES-COMMON-STOCK>                                7<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                         3162
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          9033
<ACCUM-APPREC-OR-DEPREC>                        133890
<NET-ASSETS>                                    624227
<DIVIDEND-INCOME>                                11893
<INTEREST-INCOME>                                  497
<OTHER-INCOME>                                  (1356)
<EXPENSES-NET>                                    4637
<NET-INVESTMENT-INCOME>                           6397
<REALIZED-GAINS-CURRENT>                           172
<APPREC-INCREASE-CURRENT>                        43167
<NET-CHANGE-FROM-OPS>                            49736
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                              7<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          151683
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3571
<OVERDISTRIB-NII-PRIOR>                           2608
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             2791
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4654
<AVERAGE-NET-ASSETS>                                16<F1>
<PER-SHARE-NAV-BEGIN>                            15.70<F1>
<PER-SHARE-NII>                                    .06<F1>
<PER-SHARE-GAIN-APPREC>                           2.45<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                          .30<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              17.91<F1>
<EXPENSE-RATIO>                                   1.87<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 151
   <NAME> THE ONE GROUP TREASURY ONLY MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           714702
<INVESTMENTS-AT-VALUE>                          714702
<RECEIVABLES>                                     7812
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  722524
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         2954
<TOTAL-LIABILITIES>                               2954
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        719663
<SHARES-COMMON-STOCK>                           719663<F1>
<SHARES-COMMON-PRIOR>                           480950<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                            93
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    719570
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                34333
<OTHER-INCOME>                                     212
<EXPENSES-NET>                                     989
<NET-INVESTMENT-INCOME>                          33556
<REALIZED-GAINS-CURRENT>                           (1)
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                            33555
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        33556<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                        2224095<F1>
<NUMBER-OF-SHARES-REDEEMED>                    1988092<F1>
<SHARES-REINVESTED>                               2710<F1>
<NET-CHANGE-IN-ASSETS>                          238710
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          92
<GROSS-ADVISORY-FEES>                              519
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    989
<AVERAGE-NET-ASSETS>                            648043<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .052<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .052<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .15<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 161
   <NAME> THE ONE GROUP GOVERNMENT MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          3771120
<INVESTMENTS-AT-VALUE>                         3771120
<RECEIVABLES>                                     9642
<ASSETS-OTHER>                                       7
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 3780769
<PAYABLE-FOR-SECURITIES>                         25000
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        43517
<TOTAL-LIABILITIES>                              68517
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       3712375
<SHARES-COMMON-STOCK>                          3712374<F1>
<SHARES-COMMON-PRIOR>                          1083623<F1>
<ACCUMULATED-NII-CURRENT>                          575
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                           698
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   3712252
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               122173
<OTHER-INCOME>                                      14
<EXPENSES-NET>                                    3297
<NET-INVESTMENT-INCOME>                         118890
<REALIZED-GAINS-CURRENT>                            62
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                           118952
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                       118890<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                       10068682<F1>
<NUMBER-OF-SHARES-REDEEMED>                    7456390<F1>
<SHARES-REINVESTED>                              16459<F1>
<NET-CHANGE-IN-ASSETS>                         2628814
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                         185
<GROSS-ADVISORY-FEES>                             1735
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   3297
<AVERAGE-NET-ASSETS>                           2168920<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .055<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .055<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .15<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 171
   <NAME> THE ONE GROUP ASSET ALLOCATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           264919
<INVESTMENTS-AT-VALUE>                          301601
<RECEIVABLES>                                     1989
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  303591
<PAYABLE-FOR-SECURITIES>                          2988
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        29947
<TOTAL-LIABILITIES>                              32935
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        224327
<SHARES-COMMON-STOCK>                             7627<F1>
<SHARES-COMMON-PRIOR>                             7314<F1>
<ACCUMULATED-NII-CURRENT>                           27
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           9438
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         36864
<NET-ASSETS>                                    270656
<DIVIDEND-INCOME>                                 1547
<INTEREST-INCOME>                                 6541
<OTHER-INCOME>                                      59
<EXPENSES-NET>                                    2626
<NET-INVESTMENT-INCOME>                           5521
<REALIZED-GAINS-CURRENT>                         15512
<APPREC-INCREASE-CURRENT>                        19656
<NET-CHANGE-FROM-OPS>                            40689
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         2881<F1>
<DISTRIBUTIONS-OF-GAINS>                         10063<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2320<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2330<F1>
<SHARES-REINVESTED>                                322<F1>
<NET-CHANGE-IN-ASSETS>                          100406
<ACCUMULATED-NII-PRIOR>                              5
<ACCUMULATED-GAINS-PRIOR>                        13861
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             1370
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   3047
<AVERAGE-NET-ASSETS>                             96907<F1>
<PER-SHARE-NAV-BEGIN>                            12.98<F1>
<PER-SHARE-NII>                                    .40<F1>
<PER-SHARE-GAIN-APPREC>                           2.24<F1>
<PER-SHARE-DIVIDEND>                               .39<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.43<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.80<F1>
<EXPENSE-RATIO>                                    .85<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 172
   <NAME> THE ONE GROUP ASSET ALLOCATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           264919
<INVESTMENTS-AT-VALUE>                          301601
<RECEIVABLES>                                     1989
<ASSETS-OTHER>                                       1
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<TOTAL-ASSETS>                                  303591
<PAYABLE-FOR-SECURITIES>                          2988
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        29947
<TOTAL-LIABILITIES>                              32935
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        224327
<SHARES-COMMON-STOCK>                             3652<F1>
<SHARES-COMMON-PRIOR>                             2414<F1>
<ACCUMULATED-NII-CURRENT>                           27
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           9438
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         36864
<NET-ASSETS>                                    270656
<DIVIDEND-INCOME>                                 1547
<INTEREST-INCOME>                                 6541
<OTHER-INCOME>                                      59
<EXPENSES-NET>                                    2626
<NET-INVESTMENT-INCOME>                           5521
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<APPREC-INCREASE-CURRENT>                        19656
<NET-CHANGE-FROM-OPS>                            40689
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1102<F1>
<DISTRIBUTIONS-OF-GAINS>                          3738<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1513<F1>
<NUMBER-OF-SHARES-REDEEMED>                        645<F1>
<SHARES-REINVESTED>                                370<F1>
<NET-CHANGE-IN-ASSETS>                          100406
<ACCUMULATED-NII-PRIOR>                              5
<ACCUMULATED-GAINS-PRIOR>                        13861
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             1370
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   3047
<AVERAGE-NET-ASSETS>                             40026<F1>
<PER-SHARE-NAV-BEGIN>                            13.00<F1>
<PER-SHARE-NII>                                    .36<F1>
<PER-SHARE-GAIN-APPREC>                           2.24<F1>
<PER-SHARE-DIVIDEND>                               .36<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.43<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.81<F1>
<EXPENSE-RATIO>                                   1.10<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 173
   <NAME> THE ONE GROUP ASSET ALLOCATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           264919
<INVESTMENTS-AT-VALUE>                          301601
<RECEIVABLES>                                     1989
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  303591
<PAYABLE-FOR-SECURITIES>                          2988
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        29947
<TOTAL-LIABILITIES>                              32935
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        224327
<SHARES-COMMON-STOCK>                             8290<F1>
<SHARES-COMMON-PRIOR>                             3366<F1>
<ACCUMULATED-NII-CURRENT>                           27
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           9438
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         36864
<NET-ASSETS>                                    270656
<DIVIDEND-INCOME>                                 1547
<INTEREST-INCOME>                                 6541
<OTHER-INCOME>                                      59
<EXPENSES-NET>                                    2626
<NET-INVESTMENT-INCOME>                           5521
<REALIZED-GAINS-CURRENT>                         15512
<APPREC-INCREASE-CURRENT>                        19656
<NET-CHANGE-FROM-OPS>                            40689
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1516<F1>
<DISTRIBUTIONS-OF-GAINS>                          6134<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           4971<F1>
<NUMBER-OF-SHARES-REDEEMED>                        632<F1>
<SHARES-REINVESTED>                                586<F1>
<NET-CHANGE-IN-ASSETS>                          100406
<ACCUMULATED-NII-PRIOR>                              5
<ACCUMULATED-GAINS-PRIOR>                        13861
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             1370
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   3047
<AVERAGE-NET-ASSETS>                             74094<F1>
<PER-SHARE-NAV-BEGIN>                            13.04<F1>
<PER-SHARE-NII>                                    .26<F1>
<PER-SHARE-GAIN-APPREC>                           2.26<F1>
<PER-SHARE-DIVIDEND>                               .26<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.43<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.87<F1>
<EXPENSE-RATIO>                                   1.85<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 181
   <NAME> THE ONE GROUP GOVERNMENT BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           933275
<INVESTMENTS-AT-VALUE>                          967072
<RECEIVABLES>                                     6951
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  974028
<PAYABLE-FOR-SECURITIES>                         15417
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        54624
<TOTAL-LIABILITIES>                              70041
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        884829
<SHARES-COMMON-STOCK>                            84263<F1>
<SHARES-COMMON-PRIOR>                            74751<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             100
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         14539
<ACCUM-APPREC-OR-DEPREC>                         33797
<NET-ASSETS>                                    903987
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                56100
<OTHER-INCOME>                                     127
<EXPENSES-NET>                                    5450
<NET-INVESTMENT-INCOME>                          50777
<REALIZED-GAINS-CURRENT>                          6626
<APPREC-INCREASE-CURRENT>                        27673
<NET-CHANGE-FROM-OPS>                            85076
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        48072<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          26261<F1>
<NUMBER-OF-SHARES-REDEEMED>                      16821<F1>
<SHARES-REINVESTED>                                 72<F1>
<NET-CHANGE-IN-ASSETS>                          133108
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            101
<OVERDIST-NET-GAINS-PRIOR>                       21164
<GROSS-ADVISORY-FEES>                             3795
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5904
<AVERAGE-NET-ASSETS>                            795347<F1>
<PER-SHARE-NAV-BEGIN>                             9.69<F1>
<PER-SHARE-NII>                                    .60<F1>
<PER-SHARE-GAIN-APPREC>                            .42<F1>
<PER-SHARE-DIVIDEND>                               .60<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.11<F1>
<EXPENSE-RATIO>                                    .62<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 182
   <NAME> THE ONE GROUP GOVERNMENT BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           933275
<INVESTMENTS-AT-VALUE>                          967072
<RECEIVABLES>                                     6951
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  974028
<PAYABLE-FOR-SECURITIES>                         15417
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        54624
<TOTAL-LIABILITIES>                              70041
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        884829
<SHARES-COMMON-STOCK>                             3122<F1>
<SHARES-COMMON-PRIOR>                             3583<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             100
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         14539
<ACCUM-APPREC-OR-DEPREC>                         33797
<NET-ASSETS>                                    903987
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                56100
<OTHER-INCOME>                                     127
<EXPENSES-NET>                                    5450
<NET-INVESTMENT-INCOME>                          50777
<REALIZED-GAINS-CURRENT>                          6626
<APPREC-INCREASE-CURRENT>                        27673
<NET-CHANGE-FROM-OPS>                            85076
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1922<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            640<F1>
<NUMBER-OF-SHARES-REDEEMED>                       1238<F1>
<SHARES-REINVESTED>                                137<F1>
<NET-CHANGE-IN-ASSETS>                          133108
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            101
<OVERDIST-NET-GAINS-PRIOR>                       21164
<GROSS-ADVISORY-FEES>                             3795
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5904
<AVERAGE-NET-ASSETS>                             33140<F1>
<PER-SHARE-NAV-BEGIN>                             9.69<F1>
<PER-SHARE-NII>                                    .58<F1>
<PER-SHARE-GAIN-APPREC>                            .42<F1>
<PER-SHARE-DIVIDEND>                               .58<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.11<F1>
<EXPENSE-RATIO>                                    .87<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 183
   <NAME> THE ONE GROUP GOVERNMENT BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           933275
<INVESTMENTS-AT-VALUE>                          967072
<RECEIVABLES>                                     6951
<ASSETS-OTHER>                                       5
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  974028
<PAYABLE-FOR-SECURITIES>                         15417
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        54624
<TOTAL-LIABILITIES>                              70041
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        884829
<SHARES-COMMON-STOCK>                             2070<F1>
<SHARES-COMMON-PRIOR>                             1210<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             100
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                         14539
<ACCUM-APPREC-OR-DEPREC>                         33797
<NET-ASSETS>                                    903987
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                56100
<OTHER-INCOME>                                     127
<EXPENSES-NET>                                    5450
<NET-INVESTMENT-INCOME>                          50777
<REALIZED-GAINS-CURRENT>                          6626
<APPREC-INCREASE-CURRENT>                        27673
<NET-CHANGE-FROM-OPS>                            85076
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          783<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1070<F1>
<NUMBER-OF-SHARES-REDEEMED>                        269<F1>
<SHARES-REINVESTED>                                 59<F1>
<NET-CHANGE-IN-ASSETS>                          133108
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            101
<OVERDIST-NET-GAINS-PRIOR>                       21164
<GROSS-ADVISORY-FEES>                             3795
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5904
<AVERAGE-NET-ASSETS>                             15249<F1>
<PER-SHARE-NAV-BEGIN>                             9.69<F1>
<PER-SHARE-NII>                                    .52<F1>
<PER-SHARE-GAIN-APPREC>                            .42<F1>
<PER-SHARE-DIVIDEND>                               .52<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.11<F1>
<EXPENSE-RATIO>                                   1.52<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 191
   <NAME> THE ONE GROUP ULTRA SHORT-TERM INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           221196
<INVESTMENTS-AT-VALUE>                          221968
<RECEIVABLES>                                     1694
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  223663
<PAYABLE-FOR-SECURITIES>                          5113
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1139
<TOTAL-LIABILITIES>                               6252
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        221218
<SHARES-COMMON-STOCK>                            19053<F1>
<SHARES-COMMON-PRIOR>                            11588<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             411
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4124
<ACCUM-APPREC-OR-DEPREC>                           728
<NET-ASSETS>                                    217411
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                12689
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     718
<NET-INVESTMENT-INCOME>                          11971
<REALIZED-GAINS-CURRENT>                         (446)
<APPREC-INCREASE-CURRENT>                          200
<NET-CHANGE-FROM-OPS>                            11725
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         9591<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          18849<F1>
<NUMBER-OF-SHARES-REDEEMED>                      11387<F1>
<SHARES-REINVESTED>                                  3<F1>
<NET-CHANGE-IN-ASSETS>                           70537
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            201
<OVERDIST-NET-GAINS-PRIOR>                        4042
<GROSS-ADVISORY-FEES>                             1124
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1797
<AVERAGE-NET-ASSETS>                            164469<F1>
<PER-SHARE-NAV-BEGIN>                             9.87<F1>
<PER-SHARE-NII>                                    .59<F1>
<PER-SHARE-GAIN-APPREC>                          (.01)<F1>
<PER-SHARE-DIVIDEND>                               .58<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               9.87<F1>
<EXPENSE-RATIO>                                    .30<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 192
   <NAME> THE ONE GROUP ULTRA SHORT-TERM INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           221196
<INVESTMENTS-AT-VALUE>                          221968
<RECEIVABLES>                                     1694
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  223663
<PAYABLE-FOR-SECURITIES>                          5113
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1139
<TOTAL-LIABILITIES>                               6252
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        221218
<SHARES-COMMON-STOCK>                             2507<F1>
<SHARES-COMMON-PRIOR>                             3003<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             411
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4124
<ACCUM-APPREC-OR-DEPREC>                           728
<NET-ASSETS>                                    217411
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                12689
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     718
<NET-INVESTMENT-INCOME>                          11971
<REALIZED-GAINS-CURRENT>                         (446)
<APPREC-INCREASE-CURRENT>                          200
<NET-CHANGE-FROM-OPS>                            11725
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         2049<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2292<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2970<F1>
<SHARES-REINVESTED>                                182<F1>
<NET-CHANGE-IN-ASSETS>                           70537
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            201
<OVERDIST-NET-GAINS-PRIOR>                        4042
<GROSS-ADVISORY-FEES>                             1124
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1797
<AVERAGE-NET-ASSETS>                             36636<F1>
<PER-SHARE-NAV-BEGIN>                             9.87<F1>
<PER-SHARE-NII>                                    .56<F1>
<PER-SHARE-GAIN-APPREC>                          (.01)<F1>
<PER-SHARE-DIVIDEND>                               .55<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               9.87<F1>
<EXPENSE-RATIO>                                    .54<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 193
   <NAME> THE ONE GROUP ULTRA SHORT-TERM INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           221196
<INVESTMENTS-AT-VALUE>                          221968
<RECEIVABLES>                                     1694
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  223663
<PAYABLE-FOR-SECURITIES>                          5113
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1139
<TOTAL-LIABILITIES>                               6252
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        221218
<SHARES-COMMON-STOCK>                              462<F1>
<SHARES-COMMON-PRIOR>                              287<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             411
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4124
<ACCUM-APPREC-OR-DEPREC>                           728
<NET-ASSETS>                                    217411
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                12689
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     718
<NET-INVESTMENT-INCOME>                          11971
<REALIZED-GAINS-CURRENT>                         (446)
<APPREC-INCREASE-CURRENT>                          200
<NET-CHANGE-FROM-OPS>                            11725
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          177<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            258<F1>
<NUMBER-OF-SHARES-REDEEMED>                         96<F1>
<SHARES-REINVESTED>                                 13<F1>
<NET-CHANGE-IN-ASSETS>                           70537
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            201
<OVERDIST-NET-GAINS-PRIOR>                        4042
<GROSS-ADVISORY-FEES>                             1124
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1797
<AVERAGE-NET-ASSETS>                              3434<F1>
<PER-SHARE-NAV-BEGIN>                             9.81<F1>
<PER-SHARE-NII>                                    .52<F1>
<PER-SHARE-GAIN-APPREC>                          (.01)<F1>
<PER-SHARE-DIVIDEND>                               .51<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               9.81<F1>
<EXPENSE-RATIO>                                    .99<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 201
   <NAME> THE ONE GROUP MUNICIPAL INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           764609
<INVESTMENTS-AT-VALUE>                          788318
<RECEIVABLES>                                    18204
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  806525
<PAYABLE-FOR-SECURITIES>                         23797
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         3911
<TOTAL-LIABILITIES>                              27708
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        761142
<SHARES-COMMON-STOCK>                            61137<F1>
<SHARES-COMMON-PRIOR>                            41518<F1>
<ACCUMULATED-NII-CURRENT>                           18
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          6052
<ACCUM-APPREC-OR-DEPREC>                         23709
<NET-ASSETS>                                    778817
<DIVIDEND-INCOME>                                  138
<INTEREST-INCOME>                                35129
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    4143
<NET-INVESTMENT-INCOME>                          31124
<REALIZED-GAINS-CURRENT>                          2557
<APPREC-INCREASE-CURRENT>                        12210
<NET-CHANGE-FROM-OPS>                            45891
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        25751<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          26496<F1>
<NUMBER-OF-SHARES-REDEEMED>                       6882<F1>
<SHARES-REINVESTED>                                  4<F1>
<NET-CHANGE-IN-ASSETS>                          292153
<ACCUMULATED-NII-PRIOR>                             18
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        8609
<GROSS-ADVISORY-FEES>                             2809
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4885
<AVERAGE-NET-ASSETS>                            507335<F1>
<PER-SHARE-NAV-BEGIN>                             9.84<F1>
<PER-SHARE-NII>                                    .51<F1>
<PER-SHARE-GAIN-APPREC>                            .27<F1>
<PER-SHARE-DIVIDEND>                               .51<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.11<F1>
<EXPENSE-RATIO>                                    .57<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 202
   <NAME> THE ONE GROUP MUNICIPAL INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           764609
<INVESTMENTS-AT-VALUE>                          788318
<RECEIVABLES>                                    18204
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  806525
<PAYABLE-FOR-SECURITIES>                         23797
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         3911
<TOTAL-LIABILITIES>                              27708
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        761142
<SHARES-COMMON-STOCK>                            10043<F1>
<SHARES-COMMON-PRIOR>                             4237<F1>
<ACCUMULATED-NII-CURRENT>                           18
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          6052
<ACCUM-APPREC-OR-DEPREC>                         23709
<NET-ASSETS>                                    778817
<DIVIDEND-INCOME>                                  138
<INTEREST-INCOME>                                35129
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    4143
<NET-INVESTMENT-INCOME>                          31124
<REALIZED-GAINS-CURRENT>                          2557
<APPREC-INCREASE-CURRENT>                        12210
<NET-CHANGE-FROM-OPS>                            45891
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         3418<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           7666<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2120<F1>
<SHARES-REINVESTED>                                260<F1>
<NET-CHANGE-IN-ASSETS>                          292153
<ACCUMULATED-NII-PRIOR>                             18
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        8609
<GROSS-ADVISORY-FEES>                             2809
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4885
<AVERAGE-NET-ASSETS>                             70911<F1>
<PER-SHARE-NAV-BEGIN>                             9.87<F1>
<PER-SHARE-NII>                                    .49<F1>
<PER-SHARE-GAIN-APPREC>                            .27<F1>
<PER-SHARE-DIVIDEND>                               .49<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.14<F1>
<EXPENSE-RATIO>                                    .82<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 203
   <NAME> THE ONE GROUP MUNICIPAL INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           764609
<INVESTMENTS-AT-VALUE>                          788318
<RECEIVABLES>                                    18204
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  806525
<PAYABLE-FOR-SECURITIES>                         23797
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         3911
<TOTAL-LIABILITIES>                              27708
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        761142
<SHARES-COMMON-STOCK>                             5634<F1>
<SHARES-COMMON-PRIOR>                             3686<F1>
<ACCUMULATED-NII-CURRENT>                           18
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          6052
<ACCUM-APPREC-OR-DEPREC>                         23709
<NET-ASSETS>                                    778817
<DIVIDEND-INCOME>                                  138
<INTEREST-INCOME>                                35129
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    4143
<NET-INVESTMENT-INCOME>                          31124
<REALIZED-GAINS-CURRENT>                          2557
<APPREC-INCREASE-CURRENT>                        12210
<NET-CHANGE-FROM-OPS>                            45891
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1923<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2416<F1>
<NUMBER-OF-SHARES-REDEEMED>                        599<F1>
<SHARES-REINVESTED>                                132<F1>
<NET-CHANGE-IN-ASSETS>                          292153
<ACCUMULATED-NII-PRIOR>                             18
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        8609
<GROSS-ADVISORY-FEES>                             2809
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4885
<AVERAGE-NET-ASSETS>                             46028<F1>
<PER-SHARE-NAV-BEGIN>                             9.84<F1>
<PER-SHARE-NII>                                    .42<F1>
<PER-SHARE-GAIN-APPREC>                            .26<F1>
<PER-SHARE-DIVIDEND>                               .42<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.10<F1>
<EXPENSE-RATIO>                                   1.47<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 204
   <NAME> THE ONE GROUP MUNICIPAL INCOME BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           764609
<INVESTMENTS-AT-VALUE>                          788318
<RECEIVABLES>                                    18204
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  806525
<PAYABLE-FOR-SECURITIES>                         23797
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         3911
<TOTAL-LIABILITIES>                              27708
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        761142
<SHARES-COMMON-STOCK>                              220<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                           18
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          6052
<ACCUM-APPREC-OR-DEPREC>                         23709
<NET-ASSETS>                                    778817
<DIVIDEND-INCOME>                                  138
<INTEREST-INCOME>                                35129
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    4143
<NET-INVESTMENT-INCOME>                          31124
<REALIZED-GAINS-CURRENT>                          2557
<APPREC-INCREASE-CURRENT>                        12210
<NET-CHANGE-FROM-OPS>                            45891
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           32<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            218<F1>
<NUMBER-OF-SHARES-REDEEMED>                          1<F1>
<SHARES-REINVESTED>                                  3<F1>
<NET-CHANGE-IN-ASSETS>                          292153
<ACCUMULATED-NII-PRIOR>                             18
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        8609
<GROSS-ADVISORY-FEES>                             2809
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   4885
<AVERAGE-NET-ASSETS>                               773<F1>
<PER-SHARE-NAV-BEGIN>                             9.96<F1>
<PER-SHARE-NII>                                    .68<F1>
<PER-SHARE-GAIN-APPREC>                            .13<F1>
<PER-SHARE-DIVIDEND>                               .68<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.09<F1>
<EXPENSE-RATIO>                                   1.47<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 211
   <NAME> THE ONE GROUP OHIO MUNICIPAL MONEY MARKT FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           118315
<INVESTMENTS-AT-VALUE>                          118315
<RECEIVABLES>                                      576
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  118892
<PAYABLE-FOR-SECURITIES>                          2209
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          359
<TOTAL-LIABILITIES>                               2568
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        116407
<SHARES-COMMON-STOCK>                            77260<F1>
<SHARES-COMMON-PRIOR>                            56481<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                              75
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             8
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    116324
<DIVIDEND-INCOME>                                   80
<INTEREST-INCOME>                                 3737
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     510
<NET-INVESTMENT-INCOME>                           3307
<REALIZED-GAINS-CURRENT>                             8
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                             3315
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         2208<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                         199296<F1>
<NUMBER-OF-SHARES-REDEEMED>                     178572<F1>
<SHARES-REINVESTED>                                 55<F1>
<NET-CHANGE-IN-ASSETS>                           29403
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                             75
<OVERDIST-NET-GAINS-PRIOR>                          16
<GROSS-ADVISORY-FEES>                              313
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    646
<AVERAGE-NET-ASSETS>                             67442<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .033<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .033<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .40<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 212
   <NAME> THE ONE GROUP OHIO MUNICIPAL MONEY MARKT FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           118315
<INVESTMENTS-AT-VALUE>                          118315
<RECEIVABLES>                                      576
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  118892
<PAYABLE-FOR-SECURITIES>                          2209
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          359
<TOTAL-LIABILITIES>                               2568
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        116407
<SHARES-COMMON-STOCK>                            39122<F1>
<SHARES-COMMON-PRIOR>                            30506<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                              75
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             8
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    116324
<DIVIDEND-INCOME>                                   80
<INTEREST-INCOME>                                 3737
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     510
<NET-INVESTMENT-INCOME>                           3307
<REALIZED-GAINS-CURRENT>                             8
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                             3315
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1099<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                         113412<F1>
<NUMBER-OF-SHARES-REDEEMED>                     105803<F1>
<SHARES-REINVESTED>                               1007<F1>
<NET-CHANGE-IN-ASSETS>                           29403
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                             75
<OVERDIST-NET-GAINS-PRIOR>                          16
<GROSS-ADVISORY-FEES>                              313
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    646
<AVERAGE-NET-ASSETS>                             36839<F1>
<PER-SHARE-NAV-BEGIN>                             1.00<F1>
<PER-SHARE-NII>                                   .030<F1>
<PER-SHARE-GAIN-APPREC>                              0<F1>
<PER-SHARE-DIVIDEND>                              .030<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                               1.00<F1>
<EXPENSE-RATIO>                                    .65<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 221
   <NAME> THE ONE GROUP INTERMEDIATE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           848429
<INVESTMENTS-AT-VALUE>                          862438
<RECEIVABLES>                                    10848
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  873289
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       127130
<TOTAL-LIABILITIES>                             127130
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        736895
<SHARES-COMMON-STOCK>                            67296<F1>
<SHARES-COMMON-PRIOR>                            52660<F1>
<ACCUMULATED-NII-CURRENT>                           76
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4821
<ACCUM-APPREC-OR-DEPREC>                         14009
<NET-ASSETS>                                    746159
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                45357
<OTHER-INCOME>                                     287
<EXPENSES-NET>                                    3920
<NET-INVESTMENT-INCOME>                          41724
<REALIZED-GAINS-CURRENT>                           467
<APPREC-INCREASE-CURRENT>                        11026
<NET-CHANGE-FROM-OPS>                            53217
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        38981<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          25476<F1>
<NUMBER-OF-SHARES-REDEEMED>                      10935<F1>
<SHARES-REINVESTED>                                 95<F1>
<NET-CHANGE-IN-ASSETS>                          194821
<ACCUMULATED-NII-PRIOR>                             69
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        5281
<GROSS-ADVISORY-FEES>                             3951
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5693
<AVERAGE-NET-ASSETS>                            612451<F1>
<PER-SHARE-NAV-BEGIN>                             9.92<F1>
<PER-SHARE-NII>                                    .64<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .64<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.12<F1>
<EXPENSE-RATIO>                                    .56<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 222
   <NAME> THE ONE GROUP INTERMEDIATE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           848429
<INVESTMENTS-AT-VALUE>                          862438
<RECEIVABLES>                                    10848
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  873289
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       127130
<TOTAL-LIABILITIES>                             127130
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        736895
<SHARES-COMMON-STOCK>                             4392<F1>
<SHARES-COMMON-PRIOR>                             1886<F1>
<ACCUMULATED-NII-CURRENT>                           76
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4821
<ACCUM-APPREC-OR-DEPREC>                         14009
<NET-ASSETS>                                    746159
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                45357
<OTHER-INCOME>                                     287
<EXPENSES-NET>                                    3920
<NET-INVESTMENT-INCOME>                          41724
<REALIZED-GAINS-CURRENT>                           467
<APPREC-INCREASE-CURRENT>                        11026
<NET-CHANGE-FROM-OPS>                            53217
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1927<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3051<F1>
<NUMBER-OF-SHARES-REDEEMED>                        699<F1>
<SHARES-REINVESTED>                                154<F1>
<NET-CHANGE-IN-ASSETS>                          194821
<ACCUMULATED-NII-PRIOR>                             69
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        5281
<GROSS-ADVISORY-FEES>                             3951
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5693
<AVERAGE-NET-ASSETS>                             31556<F1>
<PER-SHARE-NAV-BEGIN>                             9.95<F1>
<PER-SHARE-NII>                                    .62<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .62<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.15<F1>
<EXPENSE-RATIO>                                    .81<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 223
   <NAME> THE ONE GROUP INTERMEDIATE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           848429
<INVESTMENTS-AT-VALUE>                          862438
<RECEIVABLES>                                    10848
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  873289
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       127130
<TOTAL-LIABILITIES>                             127130
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        736895
<SHARES-COMMON-STOCK>                             1969<F1>
<SHARES-COMMON-PRIOR>                             1023<F1>
<ACCUMULATED-NII-CURRENT>                           76
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4821
<ACCUM-APPREC-OR-DEPREC>                         14009
<NET-ASSETS>                                    746159
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                45357
<OTHER-INCOME>                                     287
<EXPENSES-NET>                                    3920
<NET-INVESTMENT-INCOME>                          41724
<REALIZED-GAINS-CURRENT>                           467
<APPREC-INCREASE-CURRENT>                        11026
<NET-CHANGE-FROM-OPS>                            53217
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          802<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1102<F1>
<NUMBER-OF-SHARES-REDEEMED>                        218<F1>
<SHARES-REINVESTED>                                 62<F1>
<NET-CHANGE-IN-ASSETS>                          194821
<ACCUMULATED-NII-PRIOR>                             69
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        5281
<GROSS-ADVISORY-FEES>                             3951
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5693
<AVERAGE-NET-ASSETS>                             14685<F1>
<PER-SHARE-NAV-BEGIN>                             9.92<F1>
<PER-SHARE-NII>                                    .55<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .55<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.12<F1>
<EXPENSE-RATIO>                                   1.46<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 224
   <NAME> THE ONE GROUP INTERMEDIATE BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           848429
<INVESTMENTS-AT-VALUE>                          862438
<RECEIVABLES>                                    10848
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  873289
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       127130
<TOTAL-LIABILITIES>                             127130
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        736895
<SHARES-COMMON-STOCK>                               86<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                           76
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          4821
<ACCUM-APPREC-OR-DEPREC>                         14009
<NET-ASSETS>                                    746159
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                45357
<OTHER-INCOME>                                     287
<EXPENSES-NET>                                    3920
<NET-INVESTMENT-INCOME>                          41724
<REALIZED-GAINS-CURRENT>                           467
<APPREC-INCREASE-CURRENT>                        11026
<NET-CHANGE-FROM-OPS>                            53217
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           14<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            122<F1>
<NUMBER-OF-SHARES-REDEEMED>                         37<F1>
<SHARES-REINVESTED>                                  1<F1>
<NET-CHANGE-IN-ASSETS>                          194821
<ACCUMULATED-NII-PRIOR>                             69
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        5281
<GROSS-ADVISORY-FEES>                             3951
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   5693
<AVERAGE-NET-ASSETS>                               253<F1>
<PER-SHARE-NAV-BEGIN>                            10.07<F1>
<PER-SHARE-NII>                                    .73<F1>
<PER-SHARE-GAIN-APPREC>                            .07<F1>
<PER-SHARE-DIVIDEND>                               .73<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.14<F1>
<EXPENSE-RATIO>                                   1.46<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 231
   <NAME> THE ONE GROUP LARGE COMPANY GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1443904
<INVESTMENTS-AT-VALUE>                         2162673
<RECEIVABLES>                                    89390
<ASSETS-OTHER>                                       9
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 2252072
<PAYABLE-FOR-SECURITIES>                         81870
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       179574
<TOTAL-LIABILITIES>                             261444
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       1095916
<SHARES-COMMON-STOCK>                            66523<F1>
<SHARES-COMMON-PRIOR>                            58802<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         175943
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        718769
<NET-ASSETS>                                   1990628
<DIVIDEND-INCOME>                                18607
<INTEREST-INCOME>                                  606
<OTHER-INCOME>                                     252
<EXPENSES-NET>                                   18482
<NET-INVESTMENT-INCOME>                            983
<REALIZED-GAINS-CURRENT>                        278531
<APPREC-INCREASE-CURRENT>                       237485
<NET-CHANGE-FROM-OPS>                           516999
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1456<F1>
<DISTRIBUTIONS-OF-GAINS>                        167063<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          14017<F1>
<NUMBER-OF-SHARES-REDEEMED>                      10404<F1>
<SHARES-REINVESTED>                               4107<F1>
<NET-CHANGE-IN-ASSETS>                          589586
<ACCUMULATED-NII-PRIOR>                             45
<ACCUMULATED-GAINS-PRIOR>                       109580
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            12024
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  18640
<AVERAGE-NET-ASSETS>                           1272455<F1>
<PER-SHARE-NAV-BEGIN>                            19.44<F1>
<PER-SHARE-NII>                                    .04<F1>
<PER-SHARE-GAIN-APPREC>                           6.13<F1>
<PER-SHARE-DIVIDEND>                               .02<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.88<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              22.71<F1>
<EXPENSE-RATIO>                                    .99<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 232
   <NAME> THE ONE GROUP LARGE COMPANY GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1443904
<INVESTMENTS-AT-VALUE>                         2162673
<RECEIVABLES>                                    89390
<ASSETS-OTHER>                                       9
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 2252072
<PAYABLE-FOR-SECURITIES>                         81870
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       179574
<TOTAL-LIABILITIES>                             261444
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       1095916
<SHARES-COMMON-STOCK>                             8534<F1>
<SHARES-COMMON-PRIOR>                             6322<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         175943
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        718769
<NET-ASSETS>                                   1990628
<DIVIDEND-INCOME>                                18607
<INTEREST-INCOME>                                  606
<OTHER-INCOME>                                     252
<EXPENSES-NET>                                   18482
<NET-INVESTMENT-INCOME>                            983
<REALIZED-GAINS-CURRENT>                        278531
<APPREC-INCREASE-CURRENT>                       237485
<NET-CHANGE-FROM-OPS>                           516999
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           58<F1>
<DISTRIBUTIONS-OF-GAINS>                         20430<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2777<F1>
<NUMBER-OF-SHARES-REDEEMED>                       1625<F1>
<SHARES-REINVESTED>                               1060<F1>
<NET-CHANGE-IN-ASSETS>                          589586
<ACCUMULATED-NII-PRIOR>                             45
<ACCUMULATED-GAINS-PRIOR>                       109580
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            12024
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  18640
<AVERAGE-NET-ASSETS>                            158190<F1>
<PER-SHARE-NAV-BEGIN>                            19.92<F1>
<PER-SHARE-NII>                                    .01<F1>
<PER-SHARE-GAIN-APPREC>                           6.30<F1>
<PER-SHARE-DIVIDEND>                               .01<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.88<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              23.32<F1>
<EXPENSE-RATIO>                                   1.24<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 233
   <NAME> THE ONE GROUP LARGE COMPANY GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1443904
<INVESTMENTS-AT-VALUE>                         2162673
<RECEIVABLES>                                    89390
<ASSETS-OTHER>                                       9
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 2252072
<PAYABLE-FOR-SECURITIES>                         81870
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       179574
<TOTAL-LIABILITIES>                             261444
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       1095916
<SHARES-COMMON-STOCK>                            12341<F1>
<SHARES-COMMON-PRIOR>                             6744<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         175943
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        718769
<NET-ASSETS>                                   1990628
<DIVIDEND-INCOME>                                18607
<INTEREST-INCOME>                                  606
<OTHER-INCOME>                                     252
<EXPENSES-NET>                                   18482
<NET-INVESTMENT-INCOME>                            983
<REALIZED-GAINS-CURRENT>                        278531
<APPREC-INCREASE-CURRENT>                       237485
<NET-CHANGE-FROM-OPS>                           516999
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                         24184<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           5151<F1>
<NUMBER-OF-SHARES-REDEEMED>                        836<F1>
<SHARES-REINVESTED>                               1283<F1>
<NET-CHANGE-IN-ASSETS>                          589586
<ACCUMULATED-NII-PRIOR>                             45
<ACCUMULATED-GAINS-PRIOR>                       109580
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            12024
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  18640
<AVERAGE-NET-ASSETS>                            195683<F1>
<PER-SHARE-NAV-BEGIN>                            19.61<F1>
<PER-SHARE-NII>                                    .10<F1>
<PER-SHARE-GAIN-APPREC>                           6.10<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         2.88<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              22.73<F1>
<EXPENSE-RATIO>                                   1.99<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 234
   <NAME> THE ONE GROUP LARGE COMPANY GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                          1443904
<INVESTMENTS-AT-VALUE>                         2162673
<RECEIVABLES>                                    89390
<ASSETS-OTHER>                                       9
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 2252072
<PAYABLE-FOR-SECURITIES>                         81870
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       179574
<TOTAL-LIABILITIES>                             261444
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       1095916
<SHARES-COMMON-STOCK>                               22<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         175943
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        718769
<NET-ASSETS>                                   1990628
<DIVIDEND-INCOME>                                18607
<INTEREST-INCOME>                                  606
<OTHER-INCOME>                                     252
<EXPENSES-NET>                                   18482
<NET-INVESTMENT-INCOME>                            983
<REALIZED-GAINS-CURRENT>                        278531
<APPREC-INCREASE-CURRENT>                       237485
<NET-CHANGE-FROM-OPS>                           516999
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                             4<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                             22<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          589586
<ACCUMULATED-NII-PRIOR>                             45
<ACCUMULATED-GAINS-PRIOR>                       109580
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            12024
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  18640
<AVERAGE-NET-ASSETS>                               151<F1>
<PER-SHARE-NAV-BEGIN>                            18.98<F1>
<PER-SHARE-NII>                                    .06<F1>
<PER-SHARE-GAIN-APPREC>                           4.99<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.34<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              22.57<F1>
<EXPENSE-RATIO>                                   1.98<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 241
   <NAME> THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           127271
<INVESTMENTS-AT-VALUE>                          135701
<RECEIVABLES>                                     2125
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  137827
<PAYABLE-FOR-SECURITIES>                          1500
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          627
<TOTAL-LIABILITIES>                               2127
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        128950
<SHARES-COMMON-STOCK>                            11750<F1>
<SHARES-COMMON-PRIOR>                            11450<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          1680
<ACCUM-APPREC-OR-DEPREC>                          8430
<NET-ASSETS>                                    135700
<DIVIDEND-INCOME>                                   52
<INTEREST-INCOME>                                 7173
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     835
<NET-INVESTMENT-INCOME>                           6390
<REALIZED-GAINS-CURRENT>                           119
<APPREC-INCREASE-CURRENT>                         2318
<NET-CHANGE-FROM-OPS>                             8827
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         5949<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2029<F1>
<NUMBER-OF-SHARES-REDEEMED>                       1730<F1>
<SHARES-REINVESTED>                                  1<F1>
<NET-CHANGE-IN-ASSETS>                           10917
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        1799
<GROSS-ADVISORY-FEES>                              587
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    962
<AVERAGE-NET-ASSETS>                            120498<F1>
<PER-SHARE-NAV-BEGIN>                            10.20<F1>
<PER-SHARE-NII>                                    .51<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .51<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.40<F1>
<EXPENSE-RATIO>                                    .60<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 242
   <NAME> THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           127271
<INVESTMENTS-AT-VALUE>                          135701
<RECEIVABLES>                                     2125
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  137827
<PAYABLE-FOR-SECURITIES>                          1500
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          627
<TOTAL-LIABILITIES>                               2127
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        128950
<SHARES-COMMON-STOCK>                              759<F1>
<SHARES-COMMON-PRIOR>                              544<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          1680
<ACCUM-APPREC-OR-DEPREC>                          8430
<NET-ASSETS>                                    135700
<DIVIDEND-INCOME>                                   52
<INTEREST-INCOME>                                 7173
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     835
<NET-INVESTMENT-INCOME>                           6390
<REALIZED-GAINS-CURRENT>                           119
<APPREC-INCREASE-CURRENT>                         2318
<NET-CHANGE-FROM-OPS>                             8827
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          293<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            297<F1>
<NUMBER-OF-SHARES-REDEEMED>                        103<F1>
<SHARES-REINVESTED>                                 21<F1>
<NET-CHANGE-IN-ASSETS>                           10917
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        1799
<GROSS-ADVISORY-FEES>                              587
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    962
<AVERAGE-NET-ASSETS>                              6254<F1>
<PER-SHARE-NAV-BEGIN>                            10.21<F1>
<PER-SHARE-NII>                                    .49<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .49<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.41<F1>
<EXPENSE-RATIO>                                    .85<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 243
   <NAME> THE ONE GROUP KENTUCKY MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           127271
<INVESTMENTS-AT-VALUE>                          135701
<RECEIVABLES>                                     2125
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  137827
<PAYABLE-FOR-SECURITIES>                          1500
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          627
<TOTAL-LIABILITIES>                               2127
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        128950
<SHARES-COMMON-STOCK>                              539<F1>
<SHARES-COMMON-PRIOR>                              236<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                          1680
<ACCUM-APPREC-OR-DEPREC>                          8430
<NET-ASSETS>                                    135700
<DIVIDEND-INCOME>                                   52
<INTEREST-INCOME>                                 7173
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     835
<NET-INVESTMENT-INCOME>                           6390
<REALIZED-GAINS-CURRENT>                           119
<APPREC-INCREASE-CURRENT>                         2318
<NET-CHANGE-FROM-OPS>                             8827
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          148<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            324<F1>
<NUMBER-OF-SHARES-REDEEMED>                         29<F1>
<SHARES-REINVESTED>                                  8<F1>
<NET-CHANGE-IN-ASSETS>                           10917
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                        1799
<GROSS-ADVISORY-FEES>                              587
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    962
<AVERAGE-NET-ASSETS>                              3664<F1>
<PER-SHARE-NAV-BEGIN>                            10.15<F1>
<PER-SHARE-NII>                                    .42<F1>
<PER-SHARE-GAIN-APPREC>                            .20<F1>
<PER-SHARE-DIVIDEND>                               .42<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.35<F1>
<EXPENSE-RATIO>                                   1.51<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 251
   <NAME> THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           137584
<INVESTMENTS-AT-VALUE>                          145524
<RECEIVABLES>                                     2417
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  147942
<PAYABLE-FOR-SECURITIES>                          2023
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          677
<TOTAL-LIABILITIES>                               2700
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        137009
<SHARES-COMMON-STOCK>                             9035<F1>
<SHARES-COMMON-PRIOR>                            11221<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            293
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          7940
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                   20
<INTEREST-INCOME>                                 8410
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1093
<NET-INVESTMENT-INCOME>                           7337
<REALIZED-GAINS-CURRENT>                           968
<APPREC-INCREASE-CURRENT>                         1590
<NET-CHANGE-FROM-OPS>                             9895
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         4929<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            747<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2934<F1>
<SHARES-REINVESTED>                                  1<F1>
<NET-CHANGE-IN-ASSETS>                         (20429)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                         675
<GROSS-ADVISORY-FEES>                              928
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1502
<AVERAGE-NET-ASSETS>                            101632<F1>
<PER-SHARE-NAV-BEGIN>                            10.10<F1>
<PER-SHARE-NII>                                    .50<F1>
<PER-SHARE-GAIN-APPREC>                            .16<F1>
<PER-SHARE-DIVIDEND>                               .50<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.26<F1>
<EXPENSE-RATIO>                                    .60<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 252
   <NAME> THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           137584
<INVESTMENTS-AT-VALUE>                          145524
<RECEIVABLES>                                     2417
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  147942
<PAYABLE-FOR-SECURITIES>                          2023
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          677
<TOTAL-LIABILITIES>                               2700
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        137009
<SHARES-COMMON-STOCK>                             4589<F1>
<SHARES-COMMON-PRIOR>                             4802<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            293
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          7940
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                   20
<INTEREST-INCOME>                                 8410
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1093
<NET-INVESTMENT-INCOME>                           7337
<REALIZED-GAINS-CURRENT>                           968
<APPREC-INCREASE-CURRENT>                         1590
<NET-CHANGE-FROM-OPS>                             9895
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         2237<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            519<F1>
<NUMBER-OF-SHARES-REDEEMED>                        872<F1>
<SHARES-REINVESTED>                                140<F1>
<NET-CHANGE-IN-ASSETS>                         (20429)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                         675
<GROSS-ADVISORY-FEES>                              928
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1502
<AVERAGE-NET-ASSETS>                             48628<F1>
<PER-SHARE-NAV-BEGIN>                            10.10<F1>
<PER-SHARE-NII>                                    .47<F1>
<PER-SHARE-GAIN-APPREC>                            .16<F1>
<PER-SHARE-DIVIDEND>                               .47<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.26<F1>
<EXPENSE-RATIO>                                    .85<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 253
   <NAME> THE ONE GROUP LOUISIANA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           137584
<INVESTMENTS-AT-VALUE>                          145524
<RECEIVABLES>                                     2417
<ASSETS-OTHER>                                       1
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  147942
<PAYABLE-FOR-SECURITIES>                          2023
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          677
<TOTAL-LIABILITIES>                               2700
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        137009
<SHARES-COMMON-STOCK>                              534<F1>
<SHARES-COMMON-PRIOR>                              380<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            293
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          7940
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                   20
<INTEREST-INCOME>                                 8410
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1093
<NET-INVESTMENT-INCOME>                           7337
<REALIZED-GAINS-CURRENT>                           968
<APPREC-INCREASE-CURRENT>                         1590
<NET-CHANGE-FROM-OPS>                             9895
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          171<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            202<F1>
<NUMBER-OF-SHARES-REDEEMED>                         59<F1>
<SHARES-REINVESTED>                                 11<F1>
<NET-CHANGE-IN-ASSETS>                         (20429)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                         675
<GROSS-ADVISORY-FEES>                              928
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1502
<AVERAGE-NET-ASSETS>                              4322<F1>
<PER-SHARE-NAV-BEGIN>                            10.10<F1>
<PER-SHARE-NII>                                    .41<F1>
<PER-SHARE-GAIN-APPREC>                            .16<F1>
<PER-SHARE-DIVIDEND>                               .41<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.26<F1>
<EXPENSE-RATIO>                                   1.50<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 261
   <NAME> THE ONE GROUP SMALL CAPITALIZATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           132255
<INVESTMENTS-AT-VALUE>                          157845
<RECEIVABLES>                                     2548
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  160403
<PAYABLE-FOR-SECURITIES>                           440
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        14721
<TOTAL-LIABILITIES>                              15161
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        105501
<SHARES-COMMON-STOCK>                             9542<F1>
<SHARES-COMMON-PRIOR>                             7159<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             319
<ACCUMULATED-NET-GAINS>                          14135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         25925
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                  557
<INTEREST-INCOME>                                  577
<OTHER-INCOME>                                     100
<EXPENSES-NET>                                    1397
<NET-INVESTMENT-INCOME>                          (163)
<REALIZED-GAINS-CURRENT>                         21421
<APPREC-INCREASE-CURRENT>                         1800
<NET-CHANGE-FROM-OPS>                            23058
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                          9265<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           4210<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2551<F1>
<SHARES-REINVESTED>                                724<F1>
<NET-CHANGE-IN-ASSETS>                           45790
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4697
<OVERDISTRIB-NII-PRIOR>                            176
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              902
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1454
<AVERAGE-NET-ASSETS>                             97062<F1>
<PER-SHARE-NAV-BEGIN>                            10.94<F1>
<PER-SHARE-NII>                                      0<F1>
<PER-SHARE-GAIN-APPREC>                           2.44<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.33<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              12.05<F1>
<EXPENSE-RATIO>                                   1.06<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 262
   <NAME> THE ONE GROUP SMALL CAPITALIZATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           132255
<INVESTMENTS-AT-VALUE>                          157845
<RECEIVABLES>                                     2548
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  160403
<PAYABLE-FOR-SECURITIES>                           440
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        14721
<TOTAL-LIABILITIES>                              15161
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        105501
<SHARES-COMMON-STOCK>                             1800<F1>
<SHARES-COMMON-PRIOR>                             1581<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             319
<ACCUMULATED-NET-GAINS>                          14135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         25925
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                  557
<INTEREST-INCOME>                                  577
<OTHER-INCOME>                                     100
<EXPENSES-NET>                                    1397
<NET-INVESTMENT-INCOME>                          (163)
<REALIZED-GAINS-CURRENT>                         21421
<APPREC-INCREASE-CURRENT>                         1800
<NET-CHANGE-FROM-OPS>                            23058
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                          1939<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            374<F1>
<NUMBER-OF-SHARES-REDEEMED>                        329<F1>
<SHARES-REINVESTED>                                173<F1>
<NET-CHANGE-IN-ASSETS>                           45790
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4697
<OVERDISTRIB-NII-PRIOR>                            176
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              902
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1454
<AVERAGE-NET-ASSETS>                             19415<F1>
<PER-SHARE-NAV-BEGIN>                            10.94<F1>
<PER-SHARE-NII>                                  (.03)<F1>
<PER-SHARE-GAIN-APPREC>                           2.44<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.33<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              12.02<F1>
<EXPENSE-RATIO>                                   1.31<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 263
   <NAME> THE ONE GROUP SMALL CAPITALIZATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           132255
<INVESTMENTS-AT-VALUE>                          157845
<RECEIVABLES>                                     2548
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  160403
<PAYABLE-FOR-SECURITIES>                           440
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        14721
<TOTAL-LIABILITIES>                              15161
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        105501
<SHARES-COMMON-STOCK>                              727<F1>
<SHARES-COMMON-PRIOR>                              354<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             319
<ACCUMULATED-NET-GAINS>                          14135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         25925
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                  557
<INTEREST-INCOME>                                  577
<OTHER-INCOME>                                     100
<EXPENSES-NET>                                    1397
<NET-INVESTMENT-INCOME>                          (163)
<REALIZED-GAINS-CURRENT>                         21421
<APPREC-INCREASE-CURRENT>                         1800
<NET-CHANGE-FROM-OPS>                            23058
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                           521<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            384<F1>
<NUMBER-OF-SHARES-REDEEMED>                         59<F1>
<SHARES-REINVESTED>                                 49<F1>
<NET-CHANGE-IN-ASSETS>                           45790
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4697
<OVERDISTRIB-NII-PRIOR>                            176
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              902
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1454
<AVERAGE-NET-ASSETS>                              5534<F1>
<PER-SHARE-NAV-BEGIN>                            10.84<F1>
<PER-SHARE-NII>                                  (.03)<F1>
<PER-SHARE-GAIN-APPREC>                           2.31<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.33<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.79<F1>
<EXPENSE-RATIO>                                   2.06<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 264
   <NAME> THE ONE GROUP SMALL CAPITALIZATION FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           132255
<INVESTMENTS-AT-VALUE>                          157845
<RECEIVABLES>                                     2548
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  160403
<PAYABLE-FOR-SECURITIES>                           440
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        14721
<TOTAL-LIABILITIES>                              15161
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        105501
<SHARES-COMMON-STOCK>                                7<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                             319
<ACCUMULATED-NET-GAINS>                          14135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         25925
<NET-ASSETS>                                    145242
<DIVIDEND-INCOME>                                  557
<INTEREST-INCOME>                                  577
<OTHER-INCOME>                                     100
<EXPENSES-NET>                                    1397
<NET-INVESTMENT-INCOME>                          (163)
<REALIZED-GAINS-CURRENT>                         21421
<APPREC-INCREASE-CURRENT>                         1800
<NET-CHANGE-FROM-OPS>                            23058
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                              7<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                           45790
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4697
<OVERDISTRIB-NII-PRIOR>                            176
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              902
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1454
<AVERAGE-NET-ASSETS>                                19<F1>
<PER-SHARE-NAV-BEGIN>                            13.03<F1>
<PER-SHARE-NII>                                  (.02)<F1>
<PER-SHARE-GAIN-APPREC>                            .29<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.33<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.97<F1>
<EXPENSE-RATIO>                                   2.05<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 271
   <NAME> THE ONE GROUP VALUE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           617512
<INVESTMENTS-AT-VALUE>                          786406
<RECEIVABLES>                                     1350
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  787760
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        50185
<TOTAL-LIABILITIES>                              50185
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        525615
<SHARES-COMMON-STOCK>                            46646<F1>
<SHARES-COMMON-PRIOR>                            37439<F1>
<ACCUMULATED-NII-CURRENT>                           53
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          42561
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        169346
<NET-ASSETS>                                    737575
<DIVIDEND-INCOME>                                 8118
<INTEREST-INCOME>                                 1683
<OTHER-INCOME>                                     131
<EXPENSES-NET>                                    6266
<NET-INVESTMENT-INCOME>                           3666
<REALIZED-GAINS-CURRENT>                         72571
<APPREC-INCREASE-CURRENT>                        92392
<NET-CHANGE-FROM-OPS>                           168629
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         3380<F1>
<DISTRIBUTIONS-OF-GAINS>                         54060<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                          16681<F1>
<NUMBER-OF-SHARES-REDEEMED>                       9458<F1>
<SHARES-REINVESTED>                               1984<F1>
<NET-CHANGE-IN-ASSETS>                          248915
<ACCUMULATED-NII-PRIOR>                             12
<ACCUMULATED-GAINS-PRIOR>                        31654
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4485
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6328
<AVERAGE-NET-ASSETS>                            528650<F1>
<PER-SHARE-NAV-BEGIN>                            11.51<F1>
<PER-SHARE-NII>                                    .08<F1>
<PER-SHARE-GAIN-APPREC>                           3.36<F1>
<PER-SHARE-DIVIDEND>                               .08<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.36<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.51<F1>
<EXPENSE-RATIO>                                    .98<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 272
   <NAME> THE ONE GROUP VALUE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           617512
<INVESTMENTS-AT-VALUE>                          786406
<RECEIVABLES>                                     1350
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  787760
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        50185
<TOTAL-LIABILITIES>                              50185
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        525615
<SHARES-COMMON-STOCK>                             5964<F1>
<SHARES-COMMON-PRIOR>                             4113<F1>
<ACCUMULATED-NII-CURRENT>                           53
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          42561
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        169346
<NET-ASSETS>                                    737575
<DIVIDEND-INCOME>                                 8118
<INTEREST-INCOME>                                 1683
<OTHER-INCOME>                                     131
<EXPENSES-NET>                                    6266
<NET-INVESTMENT-INCOME>                           3666
<REALIZED-GAINS-CURRENT>                         72571
<APPREC-INCREASE-CURRENT>                        92392
<NET-CHANGE-FROM-OPS>                           168629
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          243<F1>
<DISTRIBUTIONS-OF-GAINS>                          6125<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2167<F1>
<NUMBER-OF-SHARES-REDEEMED>                        847<F1>
<SHARES-REINVESTED>                                531<F1>
<NET-CHANGE-IN-ASSETS>                          248915
<ACCUMULATED-NII-PRIOR>                             12
<ACCUMULATED-GAINS-PRIOR>                        31654
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4485
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6328
<AVERAGE-NET-ASSETS>                             61902<F1>
<PER-SHARE-NAV-BEGIN>                            11.50<F1>
<PER-SHARE-NII>                                    .05<F1>
<PER-SHARE-GAIN-APPREC>                           3.36<F1>
<PER-SHARE-DIVIDEND>                               .05<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.36<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.50<F1>
<EXPENSE-RATIO>                                   1.23<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 273
   <NAME> THE ONE GROUP VALUE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           617512
<INVESTMENTS-AT-VALUE>                          786406
<RECEIVABLES>                                     1350
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  787760
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        50185
<TOTAL-LIABILITIES>                              50185
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        525615
<SHARES-COMMON-STOCK>                             1903<F1>
<SHARES-COMMON-PRIOR>                              917<F1>
<ACCUMULATED-NII-CURRENT>                           53
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          42561
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        169346
<NET-ASSETS>                                    737575
<DIVIDEND-INCOME>                                 8118
<INTEREST-INCOME>                                 1683
<OTHER-INCOME>                                     131
<EXPENSES-NET>                                    6266
<NET-INVESTMENT-INCOME>                           3666
<REALIZED-GAINS-CURRENT>                         72571
<APPREC-INCREASE-CURRENT>                        92392
<NET-CHANGE-FROM-OPS>                           168629
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            2<F1>
<DISTRIBUTIONS-OF-GAINS>                          1479<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1005<F1>
<NUMBER-OF-SHARES-REDEEMED>                        147<F1>
<SHARES-REINVESTED>                                127<F1>
<NET-CHANGE-IN-ASSETS>                          248915
<ACCUMULATED-NII-PRIOR>                             12
<ACCUMULATED-GAINS-PRIOR>                        31654
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4485
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6328
<AVERAGE-NET-ASSETS>                             16106<F1>
<PER-SHARE-NAV-BEGIN>                            11.47<F1>
<PER-SHARE-NII>                                    .02<F1>
<PER-SHARE-GAIN-APPREC>                           3.31<F1>
<PER-SHARE-DIVIDEND>                                 0<F1>
<PER-SHARE-DISTRIBUTIONS>                         1.36<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.40<F1>
<EXPENSE-RATIO>                                   1.98<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 274
   <NAME> THE ONE GROUP VALUE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           617512
<INVESTMENTS-AT-VALUE>                          786406
<RECEIVABLES>                                     1350
<ASSETS-OTHER>                                       4
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  787760
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        50185
<TOTAL-LIABILITIES>                              50185
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        525615
<SHARES-COMMON-STOCK>                               92<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                           53
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          42561
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        169346
<NET-ASSETS>                                    737575
<DIVIDEND-INCOME>                                 8118
<INTEREST-INCOME>                                 1683
<OTHER-INCOME>                                     131
<EXPENSES-NET>                                    6266
<NET-INVESTMENT-INCOME>                           3666
<REALIZED-GAINS-CURRENT>                         72571
<APPREC-INCREASE-CURRENT>                        92392
<NET-CHANGE-FROM-OPS>                           168629
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                             92<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          248915
<ACCUMULATED-NII-PRIOR>                             12
<ACCUMULATED-GAINS-PRIOR>                        31654
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             4485
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   6328
<AVERAGE-NET-ASSETS>                               160<F1>
<PER-SHARE-NAV-BEGIN>                            11.76<F1>
<PER-SHARE-NII>                                      0<F1>
<PER-SHARE-GAIN-APPREC>                           2.35<F1>
<PER-SHARE-DIVIDEND>                               .01<F1>
<PER-SHARE-DISTRIBUTIONS>                          .63<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.47<F1>
<EXPENSE-RATIO>                                   1.99<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 291
   <NAME> THE ONE GROUP WEST VIRGINIA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           100248
<INVESTMENTS-AT-VALUE>                          106770
<RECEIVABLES>                                     1519
<ASSETS-OTHER>                                      13
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  108302
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          513
<TOTAL-LIABILITIES>                                513
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        101202
<SHARES-COMMON-STOCK>                             9966<F1>
<SHARES-COMMON-PRIOR>                             9567<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             65
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          6522
<NET-ASSETS>                                    107789
<DIVIDEND-INCOME>                                   42
<INTEREST-INCOME>                                 5716
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     639
<NET-INVESTMENT-INCOME>                           5119
<REALIZED-GAINS-CURRENT>                           126
<APPREC-INCREASE-CURRENT>                         2009
<NET-CHANGE-FROM-OPS>                             7254
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         4999<F1>
<DISTRIBUTIONS-OF-GAINS>                            33<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1933<F1>
<NUMBER-OF-SHARES-REDEEMED>                       1539<F1>
<SHARES-REINVESTED>                                  4<F1>
<NET-CHANGE-IN-ASSETS>                           10097
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          28
<GROSS-ADVISORY-FEES>                              469
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    770
<AVERAGE-NET-ASSETS>                            101492<F1>
<PER-SHARE-NAV-BEGIN>                            10.06<F1>
<PER-SHARE-NII>                                    .50<F1>
<PER-SHARE-GAIN-APPREC>                            .22<F1>
<PER-SHARE-DIVIDEND>                               .50<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.28<F1>
<EXPENSE-RATIO>                                    .60<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 292
   <NAME> THE ONE GROUP WEST VIRGINIA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           100248
<INVESTMENTS-AT-VALUE>                          106770
<RECEIVABLES>                                     1519
<ASSETS-OTHER>                                      13
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  108302
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          513
<TOTAL-LIABILITIES>                                513
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        101202
<SHARES-COMMON-STOCK>                              195<F1>
<SHARES-COMMON-PRIOR>                               80<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             65
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          6522
<NET-ASSETS>                                    107789
<DIVIDEND-INCOME>                                   42
<INTEREST-INCOME>                                 5716
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     639
<NET-INVESTMENT-INCOME>                           5119
<REALIZED-GAINS-CURRENT>                           126
<APPREC-INCREASE-CURRENT>                         2009
<NET-CHANGE-FROM-OPS>                             7254
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           60<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            150<F1>
<NUMBER-OF-SHARES-REDEEMED>                         39<F1>
<SHARES-REINVESTED>                                  5<F1>
<NET-CHANGE-IN-ASSETS>                           10097
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          28
<GROSS-ADVISORY-FEES>                              469
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    770
<AVERAGE-NET-ASSETS>                              1290<F1>
<PER-SHARE-NAV-BEGIN>                            10.15<F1>
<PER-SHARE-NII>                                    .48<F1>
<PER-SHARE-GAIN-APPREC>                            .21<F1>
<PER-SHARE-DIVIDEND>                               .48<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.36<F1>
<EXPENSE-RATIO>                                    .85<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 293
   <NAME> THE ONE GROUP WEST VIRGINIA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           100248
<INVESTMENTS-AT-VALUE>                          106770
<RECEIVABLES>                                     1519
<ASSETS-OTHER>                                      13
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  108302
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          513
<TOTAL-LIABILITIES>                                513
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        101202
<SHARES-COMMON-STOCK>                              324<F1>
<SHARES-COMMON-PRIOR>                               61<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             65
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          6522
<NET-ASSETS>                                    107789
<DIVIDEND-INCOME>                                   42
<INTEREST-INCOME>                                 5716
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     639
<NET-INVESTMENT-INCOME>                           5119
<REALIZED-GAINS-CURRENT>                           126
<APPREC-INCREASE-CURRENT>                         2009
<NET-CHANGE-FROM-OPS>                             7254
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           60<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            262<F1>
<NUMBER-OF-SHARES-REDEEMED>                          1<F1>
<SHARES-REINVESTED>                                  2<F1>
<NET-CHANGE-IN-ASSETS>                           10097
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          28
<GROSS-ADVISORY-FEES>                              469
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    770
<AVERAGE-NET-ASSETS>                              1483<F1>
<PER-SHARE-NAV-BEGIN>                            10.12<F1>
<PER-SHARE-NII>                                    .42<F1>
<PER-SHARE-GAIN-APPREC>                            .23<F1>
<PER-SHARE-DIVIDEND>                               .42<F1>
<PER-SHARE-DISTRIBUTIONS>                            0<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.35<F1>
<EXPENSE-RATIO>                                   1.50<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 301
   <NAME> THE ONE GROUP ARIZONA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           234848
<INVESTMENTS-AT-VALUE>                          248027
<RECEIVABLES>                                     5556
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  253593
<PAYABLE-FOR-SECURITIES>                          2239
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1153
<TOTAL-LIABILITIES>                               3392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        234287
<SHARES-COMMON-STOCK>                            24487<F1>
<SHARES-COMMON-PRIOR>                            25425<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2735
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         13179
<NET-ASSETS>                                    250201
<DIVIDEND-INCOME>                                   63
<INTEREST-INCOME>                                13821
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1531
<NET-INVESTMENT-INCOME>                          12353
<REALIZED-GAINS-CURRENT>                          3573
<APPREC-INCREASE-CURRENT>                          550
<NET-CHANGE-FROM-OPS>                            16476
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        12296<F1>
<DISTRIBUTIONS-OF-GAINS>                          1813<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3154<F1>
<NUMBER-OF-SHARES-REDEEMED>                       4092<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          (7054)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          982
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             1162
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1715
<AVERAGE-NET-ASSETS>                            256906<F1>
<PER-SHARE-NAV-BEGIN>                            10.06<F1>
<PER-SHARE-NII>                                    .49<F1>
<PER-SHARE-GAIN-APPREC>                            .16<F1>
<PER-SHARE-DIVIDEND>                               .49<F1>
<PER-SHARE-DISTRIBUTIONS>                          .07<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.15<F1>
<EXPENSE-RATIO>                                    .59<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 302
   <NAME> THE ONE GROUP ARIZONA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           234848
<INVESTMENTS-AT-VALUE>                          248027
<RECEIVABLES>                                     5556
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  253593
<PAYABLE-FOR-SECURITIES>                          2239
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1153
<TOTAL-LIABILITIES>                               3392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        234287
<SHARES-COMMON-STOCK>                              131<F1>
<SHARES-COMMON-PRIOR>                              150<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2735
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         13179
<NET-ASSETS>                                    250201
<DIVIDEND-INCOME>                                   63
<INTEREST-INCOME>                                13821
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1531
<NET-INVESTMENT-INCOME>                          12353
<REALIZED-GAINS-CURRENT>                          3573
<APPREC-INCREASE-CURRENT>                          550
<NET-CHANGE-FROM-OPS>                            16476
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           56<F1>
<DISTRIBUTIONS-OF-GAINS>                             7<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            167<F1>
<NUMBER-OF-SHARES-REDEEMED>                        190<F1>
<SHARES-REINVESTED>                                  4<F1>
<NET-CHANGE-IN-ASSETS>                          (7054)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          982
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             1162
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1715
<AVERAGE-NET-ASSETS>                              1229<F1>
<PER-SHARE-NAV-BEGIN>                             9.99<F1>
<PER-SHARE-NII>                                    .46<F1>
<PER-SHARE-GAIN-APPREC>                            .16<F1>
<PER-SHARE-DIVIDEND>                               .46<F1>
<PER-SHARE-DISTRIBUTIONS>                          .07<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.08<F1>
<EXPENSE-RATIO>                                    .84<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 303
   <NAME> THE ONE GROUP ARIZONA MUNICIPAL BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           234848
<INVESTMENTS-AT-VALUE>                          248027
<RECEIVABLES>                                     5556
<ASSETS-OTHER>                                      10
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  253593
<PAYABLE-FOR-SECURITIES>                          2239
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         1153
<TOTAL-LIABILITIES>                               3392
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        234287
<SHARES-COMMON-STOCK>                               29<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2735
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         13179
<NET-ASSETS>                                    250201
<DIVIDEND-INCOME>                                   63
<INTEREST-INCOME>                                13821
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    1531
<NET-INVESTMENT-INCOME>                          12353
<REALIZED-GAINS-CURRENT>                          3573
<APPREC-INCREASE-CURRENT>                          550
<NET-CHANGE-FROM-OPS>                            16476
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            1<F1>
<DISTRIBUTIONS-OF-GAINS>                             0<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                             29<F1>
<NUMBER-OF-SHARES-REDEEMED>                          0<F1>
<SHARES-REINVESTED>                                  0<F1>
<NET-CHANGE-IN-ASSETS>                          (7054)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          982
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                             1162
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   1715
<AVERAGE-NET-ASSETS>                                41<F1>
<PER-SHARE-NAV-BEGIN>                            10.09<F1>
<PER-SHARE-NII>                                    .13<F1>
<PER-SHARE-GAIN-APPREC>                            .14<F1>
<PER-SHARE-DIVIDEND>                               .13<F1>
<PER-SHARE-DISTRIBUTIONS>                          .07<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.16<F1>
<EXPENSE-RATIO>                                   1.50<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 351
   <NAME> THE ONE GROUP INVESTOR GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           199115
<INVESTMENTS-AT-VALUE>                          217257
<RECEIVABLES>                                     2454
<ASSETS-OTHER>                                    1266
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  220977
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          278
<TOTAL-LIABILITIES>                                278
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        197904
<SHARES-COMMON-STOCK>                             6451<F1>
<SHARES-COMMON-PRIOR>                             2784<F1>
<ACCUMULATED-NII-CURRENT>                         2138
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2515
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         18142
<NET-ASSETS>                                    220699
<DIVIDEND-INCOME>                                 1410
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     651
<NET-INVESTMENT-INCOME>                            759
<REALIZED-GAINS-CURRENT>                          7240
<APPREC-INCREASE-CURRENT>                        14046
<NET-CHANGE-FROM-OPS>                            22045
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          544<F1>
<DISTRIBUTIONS-OF-GAINS>                          1180<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           4644<F1>
<NUMBER-OF-SHARES-REDEEMED>                       1080<F1>
<SHARES-REINVESTED>                                103<F1>
<NET-CHANGE-IN-ASSETS>                          177291
<ACCUMULATED-NII-PRIOR>                            256
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          59
<GROSS-ADVISORY-FEES>                               57
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    853
<AVERAGE-NET-ASSETS>                             54898<F1>
<PER-SHARE-NAV-BEGIN>                            11.25<F1>
<PER-SHARE-NII>                                    .12<F1>
<PER-SHARE-GAIN-APPREC>                           2.49<F1>
<PER-SHARE-DIVIDEND>                               .12<F1>
<PER-SHARE-DISTRIBUTIONS>                          .35<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.39<F1>
<EXPENSE-RATIO>                                    .20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 352
   <NAME> THE ONE GROUP INVESTOR GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           199115
<INVESTMENTS-AT-VALUE>                          217257
<RECEIVABLES>                                     2454
<ASSETS-OTHER>                                    1266
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  220977
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          278
<TOTAL-LIABILITIES>                                278
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        197904
<SHARES-COMMON-STOCK>                             4130<F1>
<SHARES-COMMON-PRIOR>                              396<F1>
<ACCUMULATED-NII-CURRENT>                         2138
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2515
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         18142
<NET-ASSETS>                                    220699
<DIVIDEND-INCOME>                                 1410
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     651
<NET-INVESTMENT-INCOME>                            759
<REALIZED-GAINS-CURRENT>                          7240
<APPREC-INCREASE-CURRENT>                        14046
<NET-CHANGE-FROM-OPS>                            22045
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          172<F1>
<DISTRIBUTIONS-OF-GAINS>                           471<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3973<F1>
<NUMBER-OF-SHARES-REDEEMED>                        291<F1>
<SHARES-REINVESTED>                                 52<F1>
<NET-CHANGE-IN-ASSETS>                          177291
<ACCUMULATED-NII-PRIOR>                            256
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          59
<GROSS-ADVISORY-FEES>                               57
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    853
<AVERAGE-NET-ASSETS>                             22541<F1>
<PER-SHARE-NAV-BEGIN>                            11.21<F1>
<PER-SHARE-NII>                                    .10<F1>
<PER-SHARE-GAIN-APPREC>                           2.47<F1>
<PER-SHARE-DIVIDEND>                               .10<F1>
<PER-SHARE-DISTRIBUTIONS>                          .35<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.33<F1>
<EXPENSE-RATIO>                                    .45<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 353
   <NAME> THE ONE GROUP INVESTOR GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           199115
<INVESTMENTS-AT-VALUE>                          217257
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<TOTAL-ASSETS>                                  220977
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
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<TOTAL-LIABILITIES>                                278
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        197904
<SHARES-COMMON-STOCK>                             5237<F1>
<SHARES-COMMON-PRIOR>                              675<F1>
<ACCUMULATED-NII-CURRENT>                         2138
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2515
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<ACCUM-APPREC-OR-DEPREC>                         18142
<NET-ASSETS>                                    220699
<DIVIDEND-INCOME>                                 1410
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     651
<NET-INVESTMENT-INCOME>                            759
<REALIZED-GAINS-CURRENT>                          7240
<APPREC-INCREASE-CURRENT>                        14046
<NET-CHANGE-FROM-OPS>                            22045
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           38<F1>
<DISTRIBUTIONS-OF-GAINS>                           776<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           4734<F1>
<NUMBER-OF-SHARES-REDEEMED>                        240<F1>
<SHARES-REINVESTED>                                 68<F1>
<NET-CHANGE-IN-ASSETS>                          177291
<ACCUMULATED-NII-PRIOR>                            256
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          59
<GROSS-ADVISORY-FEES>                               57
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    853
<AVERAGE-NET-ASSETS>                             32833<F1>
<PER-SHARE-NAV-BEGIN>                            11.34<F1>
<PER-SHARE-NII>                                    .02<F1>
<PER-SHARE-GAIN-APPREC>                           2.48<F1>
<PER-SHARE-DIVIDEND>                               .02<F1>
<PER-SHARE-DISTRIBUTIONS>                          .35<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.47<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 354
   <NAME> THE ONE GROUP INVESTOR GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           199115
<INVESTMENTS-AT-VALUE>                          217257
<RECEIVABLES>                                     2454
<ASSETS-OTHER>                                    1266
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  220977
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          278
<TOTAL-LIABILITIES>                                278
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        197904
<SHARES-COMMON-STOCK>                              658<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                         2138
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2515
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         18142
<NET-ASSETS>                                    220699
<DIVIDEND-INCOME>                                 1410
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     651
<NET-INVESTMENT-INCOME>                            759
<REALIZED-GAINS-CURRENT>                          7240
<APPREC-INCREASE-CURRENT>                        14046
<NET-CHANGE-FROM-OPS>                            22045
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            5<F1>
<DISTRIBUTIONS-OF-GAINS>                           101<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            672<F1>
<NUMBER-OF-SHARES-REDEEMED>                         23<F1>
<SHARES-REINVESTED>                                  9<F1>
<NET-CHANGE-IN-ASSETS>                          177291
<ACCUMULATED-NII-PRIOR>                            256
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                          59
<GROSS-ADVISORY-FEES>                               57
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    853
<AVERAGE-NET-ASSETS>                              4066<F1>
<PER-SHARE-NAV-BEGIN>                            11.25<F1>
<PER-SHARE-NII>                                    .02<F1>
<PER-SHARE-GAIN-APPREC>                           2.45<F1>
<PER-SHARE-DIVIDEND>                               .03<F1>
<PER-SHARE-DISTRIBUTIONS>                          .35<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              13.34<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 361
   <NAME> THE ONE GROUP INVESTOR GROWTH & INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           208652
<INVESTMENTS-AT-VALUE>                          226522
<RECEIVABLES>                                     3008
<ASSETS-OTHER>                                     820
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  230350
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          519
<TOTAL-LIABILITIES>                                519
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        207764
<SHARES-COMMON-STOCK>                             7802<F1>
<SHARES-COMMON-PRIOR>                             3996<F1>
<ACCUMULATED-NII-CURRENT>                         2062
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         17870
<NET-ASSETS>                                    229831
<DIVIDEND-INCOME>                                 3175
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     729
<NET-INVESTMENT-INCOME>                           2446
<REALIZED-GAINS-CURRENT>                          6961
<APPREC-INCREASE-CURRENT>                        14037
<NET-CHANGE-FROM-OPS>                            23444
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         1586<F1>
<DISTRIBUTIONS-OF-GAINS>                          1513<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           6428<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2777<F1>
<SHARES-REINVESTED>                                155<F1>
<NET-CHANGE-IN-ASSETS>                          173013
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3833
<OVERDISTRIB-NII-PRIOR>                             87
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               67
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    922
<AVERAGE-NET-ASSETS>                             74755<F1>
<PER-SHARE-NAV-BEGIN>                            10.93<F1>
<PER-SHARE-NII>                                    .25<F1>
<PER-SHARE-GAIN-APPREC>                           1.92<F1>
<PER-SHARE-DIVIDEND>                               .25<F1>
<PER-SHARE-DISTRIBUTIONS>                          .28<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              12.57<F1>
<EXPENSE-RATIO>                                    .20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 362
   <NAME> THE ONE GROUP INVESTOR GROWTH & INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           208652
<INVESTMENTS-AT-VALUE>                          226522
<RECEIVABLES>                                     3008
<ASSETS-OTHER>                                     820
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  230350
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          519
<TOTAL-LIABILITIES>                                519
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        207764
<SHARES-COMMON-STOCK>                             3143<F1>
<SHARES-COMMON-PRIOR>                              387<F1>
<ACCUMULATED-NII-CURRENT>                         2062
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         17870
<NET-ASSETS>                                    229831
<DIVIDEND-INCOME>                                 3175
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     729
<NET-INVESTMENT-INCOME>                           2446
<REALIZED-GAINS-CURRENT>                          6961
<APPREC-INCREASE-CURRENT>                        14037
<NET-CHANGE-FROM-OPS>                            23444
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          357<F1>
<DISTRIBUTIONS-OF-GAINS>                           348<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2960<F1>
<NUMBER-OF-SHARES-REDEEMED>                        260<F1>
<SHARES-REINVESTED>                                 56<F1>
<NET-CHANGE-IN-ASSETS>                          173013
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3833
<OVERDISTRIB-NII-PRIOR>                             87
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               67
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    922
<AVERAGE-NET-ASSETS>                             18290<F1>
<PER-SHARE-NAV-BEGIN>                            11.02<F1>
<PER-SHARE-NII>                                    .22<F1>
<PER-SHARE-GAIN-APPREC>                           1.95<F1>
<PER-SHARE-DIVIDEND>                               .22<F1>
<PER-SHARE-DISTRIBUTIONS>                          .28<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              12.69<F1>
<EXPENSE-RATIO>                                    .45<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 363
   <NAME> THE ONE GROUP INVESTOR GROWTH & INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           208652
<INVESTMENTS-AT-VALUE>                          226522
<RECEIVABLES>                                     3008
<ASSETS-OTHER>                                     820
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  230350
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          519
<TOTAL-LIABILITIES>                                519
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        207764
<SHARES-COMMON-STOCK>                             6761<F1>
<SHARES-COMMON-PRIOR>                              808<F1>
<ACCUMULATED-NII-CURRENT>                         2062
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         17870
<NET-ASSETS>                                    229831
<DIVIDEND-INCOME>                                 3175
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     729
<NET-INVESTMENT-INCOME>                           2446
<REALIZED-GAINS-CURRENT>                          6961
<APPREC-INCREASE-CURRENT>                        14037
<NET-CHANGE-FROM-OPS>                            23444
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          472<F1>
<DISTRIBUTIONS-OF-GAINS>                           761<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           6126<F1>
<NUMBER-OF-SHARES-REDEEMED>                        274<F1>
<SHARES-REINVESTED>                                101<F1>
<NET-CHANGE-IN-ASSETS>                          173013
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3833
<OVERDISTRIB-NII-PRIOR>                             87
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               67
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    922
<AVERAGE-NET-ASSETS>                             39315<F1>
<PER-SHARE-NAV-BEGIN>                            11.00<F1>
<PER-SHARE-NII>                                    .14<F1>
<PER-SHARE-GAIN-APPREC>                           1.92<F1>
<PER-SHARE-DIVIDEND>                               .14<F1>
<PER-SHARE-DISTRIBUTIONS>                          .28<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              12.64<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 364
   <NAME> THE ONE GROUP INVESTOR GROWTH & INCOME FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           208652
<INVESTMENTS-AT-VALUE>                          226522
<RECEIVABLES>                                     3008
<ASSETS-OTHER>                                     820
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  230350
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          519
<TOTAL-LIABILITIES>                                519
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        207764
<SHARES-COMMON-STOCK>                              513<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
<ACCUMULATED-NII-CURRENT>                         2062
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           2135
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         17870
<NET-ASSETS>                                    229831
<DIVIDEND-INCOME>                                 3175
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     729
<NET-INVESTMENT-INCOME>                           2446
<REALIZED-GAINS-CURRENT>                          6961
<APPREC-INCREASE-CURRENT>                        14037
<NET-CHANGE-FROM-OPS>                            23444
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           31<F1>
<DISTRIBUTIONS-OF-GAINS>                            55<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                            520<F1>
<NUMBER-OF-SHARES-REDEEMED>                         14<F1>
<SHARES-REINVESTED>                                  7<F1>
<NET-CHANGE-IN-ASSETS>                          173013
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         3833
<OVERDISTRIB-NII-PRIOR>                             87
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               67
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    922
<AVERAGE-NET-ASSETS>                              2446<F1>
<PER-SHARE-NAV-BEGIN>                            10.93<F1>
<PER-SHARE-NII>                                    .14<F1>
<PER-SHARE-GAIN-APPREC>                           1.90<F1>
<PER-SHARE-DIVIDEND>                               .15<F1>
<PER-SHARE-DISTRIBUTIONS>                          .28<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              12.54<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 391
   <NAME> THE ONE GROUP INVESTOR CONSERVATIVE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                            82599
<INVESTMENTS-AT-VALUE>                           85494
<RECEIVABLES>                                      717
<ASSETS-OTHER>                                     364
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                   86575
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          408
<TOTAL-LIABILITIES>                                408
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                         82826
<SHARES-COMMON-STOCK>                             2745<F1>
<SHARES-COMMON-PRIOR>                             1455<F1>
<ACCUMULATED-NII-CURRENT>                          180
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            266
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          2895
<NET-ASSETS>                                     86167
<DIVIDEND-INCOME>                                 2126
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     286
<NET-INVESTMENT-INCOME>                           1840
<REALIZED-GAINS-CURRENT>                           808
<APPREC-INCREASE-CURRENT>                         2434
<NET-CHANGE-FROM-OPS>                             5082
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          986<F1>
<DISTRIBUTIONS-OF-GAINS>                           205<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1830<F1>
<NUMBER-OF-SHARES-REDEEMED>                        572<F1>
<SHARES-REINVESTED>                                 32<F1>
<NET-CHANGE-IN-ASSETS>                           67214
<ACCUMULATED-NII-PRIOR>                              9
<ACCUMULATED-GAINS-PRIOR>                          461
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               23
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    437
<AVERAGE-NET-ASSETS>                             23057<F1>
<PER-SHARE-NAV-BEGIN>                            10.33<F1>
<PER-SHARE-NII>                                    .46<F1>
<PER-SHARE-GAIN-APPREC>                            .82<F1>
<PER-SHARE-DIVIDEND>                               .45<F1>
<PER-SHARE-DISTRIBUTIONS>                          .10<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.06<F1>
<EXPENSE-RATIO>                                    .20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 392
   <NAME> THE ONE GROUP INVESTOR CONSERVATIVE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                            82599
<INVESTMENTS-AT-VALUE>                           85494
<RECEIVABLES>                                      717
<ASSETS-OTHER>                                     364
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                   86575
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          408
<TOTAL-LIABILITIES>                                408
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                         82826
<SHARES-COMMON-STOCK>                             1136<F1>
<SHARES-COMMON-PRIOR>                              126<F1>
<ACCUMULATED-NII-CURRENT>                          180
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            266
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          2895
<NET-ASSETS>                                     86167
<DIVIDEND-INCOME>                                 2126
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     286
<NET-INVESTMENT-INCOME>                           1840
<REALIZED-GAINS-CURRENT>                           808
<APPREC-INCREASE-CURRENT>                         2434
<NET-CHANGE-FROM-OPS>                             5082
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          215<F1>
<DISTRIBUTIONS-OF-GAINS>                            29<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1092<F1>
<NUMBER-OF-SHARES-REDEEMED>                        100<F1>
<SHARES-REINVESTED>                                 18<F1>
<NET-CHANGE-IN-ASSETS>                           67214
<ACCUMULATED-NII-PRIOR>                              9
<ACCUMULATED-GAINS-PRIOR>                          461
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               23
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    437
<AVERAGE-NET-ASSETS>                              5079<F1>
<PER-SHARE-NAV-BEGIN>                            10.32<F1>
<PER-SHARE-NII>                                    .43<F1>
<PER-SHARE-GAIN-APPREC>                            .82<F1>
<PER-SHARE-DIVIDEND>                               .43<F1>
<PER-SHARE-DISTRIBUTIONS>                          .10<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.04<F1>
<EXPENSE-RATIO>                                    .45<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 393
   <NAME> THE ONE GROUP INVESTOR CONSERVATIVE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                            82599
<INVESTMENTS-AT-VALUE>                           85494
<RECEIVABLES>                                      717
<ASSETS-OTHER>                                     364
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                   86575
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          408
<TOTAL-LIABILITIES>                                408
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                         82826
<SHARES-COMMON-STOCK>                             3575<F1>
<SHARES-COMMON-PRIOR>                              253<F1>
<ACCUMULATED-NII-CURRENT>                          180
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            266
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          2895
<NET-ASSETS>                                     86167
<DIVIDEND-INCOME>                                 2126
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     286
<NET-INVESTMENT-INCOME>                           1840
<REALIZED-GAINS-CURRENT>                           808
<APPREC-INCREASE-CURRENT>                         2434
<NET-CHANGE-FROM-OPS>                             5082
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          572<F1>
<DISTRIBUTIONS-OF-GAINS>                           120<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3397<F1>
<NUMBER-OF-SHARES-REDEEMED>                        128<F1>
<SHARES-REINVESTED>                                 53<F1>
<NET-CHANGE-IN-ASSETS>                           67214
<ACCUMULATED-NII-PRIOR>                              9
<ACCUMULATED-GAINS-PRIOR>                          461
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               23
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    437
<AVERAGE-NET-ASSETS>                             16338<F1>
<PER-SHARE-NAV-BEGIN>                            10.33<F1>
<PER-SHARE-NII>                                    .37<F1>
<PER-SHARE-GAIN-APPREC>                            .81<F1>
<PER-SHARE-DIVIDEND>                               .36<F1>
<PER-SHARE-DISTRIBUTIONS>                          .10<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.05<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 394
   <NAME> THE ONE GROUP INVESTOR CONSERVATIVE GROWTH FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                            82599
<INVESTMENTS-AT-VALUE>                           85494
<RECEIVABLES>                                      717
<ASSETS-OTHER>                                     364
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                   86575
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          408
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<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                         82826
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<SHARES-COMMON-PRIOR>                                0<F1>
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<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          2895
<NET-ASSETS>                                     86167
<DIVIDEND-INCOME>                                 2126
<INTEREST-INCOME>                                    0
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<EXPENSES-NET>                                     286
<NET-INVESTMENT-INCOME>                           1840
<REALIZED-GAINS-CURRENT>                           808
<APPREC-INCREASE-CURRENT>                         2434
<NET-CHANGE-FROM-OPS>                             5082
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           67<F1>
<DISTRIBUTIONS-OF-GAINS>                            17<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
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<NUMBER-OF-SHARES-REDEEMED>                         11<F1>
<SHARES-REINVESTED>                                  6<F1>
<NET-CHANGE-IN-ASSETS>                           67214
<ACCUMULATED-NII-PRIOR>                              9
<ACCUMULATED-GAINS-PRIOR>                          461
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               23
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    437
<AVERAGE-NET-ASSETS>                              1934<F1>
<PER-SHARE-NAV-BEGIN>                            10.33<F1>
<PER-SHARE-NII>                                    .35<F1>
<PER-SHARE-GAIN-APPREC>                            .81<F1>
<PER-SHARE-DIVIDEND>                               .36<F1>
<PER-SHARE-DISTRIBUTIONS>                          .10<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.03<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 401
   <NAME> THE ONE GROUP INVESTOR BALANCED FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           184322
<INVESTMENTS-AT-VALUE>                          198835
<RECEIVABLES>                                     3007
<ASSETS-OTHER>                                    2114
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  203956
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          678
<TOTAL-LIABILITIES>                                678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        185728
<SHARES-COMMON-STOCK>                             7925<F1>
<SHARES-COMMON-PRIOR>                             6790<F1>
<ACCUMULATED-NII-CURRENT>                         1413
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           1624
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         14513
<NET-ASSETS>                                    203278
<DIVIDEND-INCOME>                                 4519
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     615
<NET-INVESTMENT-INCOME>                           3904
<REALIZED-GAINS-CURRENT>                          5351
<APPREC-INCREASE-CURRENT>                        10033
<NET-CHANGE-FROM-OPS>                            19288
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         2708<F1>
<DISTRIBUTIONS-OF-GAINS>                          1584<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3248<F1>
<NUMBER-OF-SHARES-REDEEMED>                       2282<F1>
<SHARES-REINVESTED>                                169<F1>
<NET-CHANGE-IN-ASSETS>                          123275
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4480
<OVERDISTRIB-NII-PRIOR>                             67
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               65
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    778
<AVERAGE-NET-ASSETS>                             84049<F1>
<PER-SHARE-NAV-BEGIN>                            10.63<F1>
<PER-SHARE-NII>                                    .37<F1>
<PER-SHARE-GAIN-APPREC>                           1.39<F1>
<PER-SHARE-DIVIDEND>                               .36<F1>
<PER-SHARE-DISTRIBUTIONS>                          .22<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.81<F1>
<EXPENSE-RATIO>                                    .20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 402
   <NAME> THE ONE GROUP INVESTOR BALANCED FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           184322
<INVESTMENTS-AT-VALUE>                          198835
<RECEIVABLES>                                     3007
<ASSETS-OTHER>                                    2114
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  203956
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          678
<TOTAL-LIABILITIES>                                678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        185728
<SHARES-COMMON-STOCK>                             2755<F1>
<SHARES-COMMON-PRIOR>                              204<F1>
<ACCUMULATED-NII-CURRENT>                         1413
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           1624
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         14513
<NET-ASSETS>                                    203278
<DIVIDEND-INCOME>                                 4519
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     615
<NET-INVESTMENT-INCOME>                           3904
<REALIZED-GAINS-CURRENT>                          5351
<APPREC-INCREASE-CURRENT>                        10033
<NET-CHANGE-FROM-OPS>                            19288
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          414<F1>
<DISTRIBUTIONS-OF-GAINS>                           185<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           2665<F1>
<NUMBER-OF-SHARES-REDEEMED>                        160<F1>
<SHARES-REINVESTED>                                 46<F1>
<NET-CHANGE-IN-ASSETS>                          123275
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4480
<OVERDISTRIB-NII-PRIOR>                             67
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               65
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    778
<AVERAGE-NET-ASSETS>                             13022<F1>
<PER-SHARE-NAV-BEGIN>                            10.66<F1>
<PER-SHARE-NII>                                    .34<F1>
<PER-SHARE-GAIN-APPREC>                           1.39<F1>
<PER-SHARE-DIVIDEND>                               .34<F1>
<PER-SHARE-DISTRIBUTIONS>                          .22<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.83<F1>
<EXPENSE-RATIO>                                    .45<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 403
   <NAME> THE ONE GROUP INVESTOR BALANCED FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           184322
<INVESTMENTS-AT-VALUE>                          198835
<RECEIVABLES>                                     3007
<ASSETS-OTHER>                                    2114
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  203956
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          678
<TOTAL-LIABILITIES>                                678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        185728
<SHARES-COMMON-STOCK>                             5963<F1>
<SHARES-COMMON-PRIOR>                              533<F1>
<ACCUMULATED-NII-CURRENT>                         1413
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                           1624
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         14513
<NET-ASSETS>                                    203278
<DIVIDEND-INCOME>                                 4519
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     615
<NET-INVESTMENT-INCOME>                           3904
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<APPREC-INCREASE-CURRENT>                        10033
<NET-CHANGE-FROM-OPS>                            19288
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          717<F1>
<DISTRIBUTIONS-OF-GAINS>                           441<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
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<NUMBER-OF-SHARES-REDEEMED>                        231<F1>
<SHARES-REINVESTED>                                 92<F1>
<NET-CHANGE-IN-ASSETS>                          123275
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4480
<OVERDISTRIB-NII-PRIOR>                             67
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               65
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    778
<AVERAGE-NET-ASSETS>                             29838<F1>
<PER-SHARE-NAV-BEGIN>                            10.65<F1>
<PER-SHARE-NII>                                    .26<F1>
<PER-SHARE-GAIN-APPREC>                           1.39<F1>
<PER-SHARE-DIVIDEND>                               .26<F1>
<PER-SHARE-DISTRIBUTIONS>                          .22<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.82<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 404
   <NAME> THE ONE GROUP INVESTOR BALANCED FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           184322
<INVESTMENTS-AT-VALUE>                          198835
<RECEIVABLES>                                     3007
<ASSETS-OTHER>                                    2114
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<TOTAL-ASSETS>                                  203956
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          678
<TOTAL-LIABILITIES>                                678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        185728
<SHARES-COMMON-STOCK>                              565<F1>
<SHARES-COMMON-PRIOR>                                0<F1>
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<ACCUMULATED-NET-GAINS>                           1624
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<NET-ASSETS>                                    203278
<DIVIDEND-INCOME>                                 4519
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     615
<NET-INVESTMENT-INCOME>                           3904
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<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           65<F1>
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<DISTRIBUTIONS-OTHER>                                0<F1>
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<NUMBER-OF-SHARES-REDEEMED>                          4<F1>
<SHARES-REINVESTED>                                  8<F1>
<NET-CHANGE-IN-ASSETS>                          123275
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                         4480
<OVERDISTRIB-NII-PRIOR>                             67
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               65
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    778
<AVERAGE-NET-ASSETS>                              2685<F1>
<PER-SHARE-NAV-BEGIN>                            10.63<F1>
<PER-SHARE-NII>                                    .26<F1>
<PER-SHARE-GAIN-APPREC>                           1.37<F1>
<PER-SHARE-DIVIDEND>                               .27<F1>
<PER-SHARE-DISTRIBUTIONS>                          .22<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              11.77<F1>
<EXPENSE-RATIO>                                   1.20<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS C
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 411
   <NAME> THE ONE GROUP TREASURY AND AGENCY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           155725
<INVESTMENTS-AT-VALUE>                          158581
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<PAYABLE-FOR-SECURITIES>                          1999
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        17992
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<SHARES-COMMON-STOCK>                             9425<F1>
<SHARES-COMMON-PRIOR>                            11024<F1>
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<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             90
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<ACCUM-APPREC-OR-DEPREC>                          2856
<NET-ASSETS>                                    142769
<DIVIDEND-INCOME>                                  159
<INTEREST-INCOME>                                 7390
<OTHER-INCOME>                                      13
<EXPENSES-NET>                                     459
<NET-INVESTMENT-INCOME>                           7103
<REALIZED-GAINS-CURRENT>                           430
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<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                         6265<F1>
<DISTRIBUTIONS-OF-GAINS>                           474<F1>
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<NUMBER-OF-SHARES-REDEEMED>                       2379<F1>
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<NET-CHANGE-IN-ASSETS>                           32511
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          178
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              465
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    833
<AVERAGE-NET-ASSETS>                            101593<F1>
<PER-SHARE-NAV-BEGIN>                             9.99<F1>
<PER-SHARE-NII>                                    .62<F1>
<PER-SHARE-GAIN-APPREC>                            .15<F1>
<PER-SHARE-DIVIDEND>                               .62<F1>
<PER-SHARE-DISTRIBUTIONS>                          .05<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.09<F1>
<EXPENSE-RATIO>                                    .35<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>FIDUCIARY CLASS
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 412
   <NAME> THE ONE GROUP TREASURY AND AGENCY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
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<PERIOD-END>                               JUN-30-1998
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<PAYABLE-FOR-SECURITIES>                          1999
<SENIOR-LONG-TERM-DEBT>                              0
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<SHARES-COMMON-STOCK>                             3490<F1>
<SHARES-COMMON-PRIOR>                                9<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             90
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          2856
<NET-ASSETS>                                    142769
<DIVIDEND-INCOME>                                  159
<INTEREST-INCOME>                                 7390
<OTHER-INCOME>                                      13
<EXPENSES-NET>                                     459
<NET-INVESTMENT-INCOME>                           7103
<REALIZED-GAINS-CURRENT>                           430
<APPREC-INCREASE-CURRENT>                         1288
<NET-CHANGE-FROM-OPS>                             8821
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          626<F1>
<DISTRIBUTIONS-OF-GAINS>                            32<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           3452<F1>
<NUMBER-OF-SHARES-REDEEMED>                         12<F1>
<SHARES-REINVESTED>                                 41<F1>
<NET-CHANGE-IN-ASSETS>                           32511
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          178
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              465
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    833
<AVERAGE-NET-ASSETS>                             10758<F1>
<PER-SHARE-NAV-BEGIN>                             9.98<F1>
<PER-SHARE-NII>                                    .63<F1>
<PER-SHARE-GAIN-APPREC>                            .16<F1>
<PER-SHARE-DIVIDEND>                               .63<F1>
<PER-SHARE-DISTRIBUTIONS>                          .05<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.09<F1>
<EXPENSE-RATIO>                                    .58<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS A
</FN>
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763852
<NAME> THE ONE GROUP FAMILY OF MUTUAL FUNDS
<SERIES>
   <NUMBER> 413
   <NAME> THE ONE GROUP TREASURY AND AGENCY FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<INVESTMENTS-AT-COST>                           155725
<INVESTMENTS-AT-VALUE>                          158581
<RECEIVABLES>                                     4176
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  162760
<PAYABLE-FOR-SECURITIES>                          1999
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        17992
<TOTAL-LIABILITIES>                              19991
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        139823
<SHARES-COMMON-STOCK>                             1238<F1>
<SHARES-COMMON-PRIOR>                                8<F1>
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             90
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                          2856
<NET-ASSETS>                                    142769
<DIVIDEND-INCOME>                                  159
<INTEREST-INCOME>                                 7390
<OTHER-INCOME>                                      13
<EXPENSES-NET>                                     459
<NET-INVESTMENT-INCOME>                           7103
<REALIZED-GAINS-CURRENT>                           430
<APPREC-INCREASE-CURRENT>                         1288
<NET-CHANGE-FROM-OPS>                             8821
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          212<F1>
<DISTRIBUTIONS-OF-GAINS>                            12<F1>
<DISTRIBUTIONS-OTHER>                                0<F1>
<NUMBER-OF-SHARES-SOLD>                           1246<F1>
<NUMBER-OF-SHARES-REDEEMED>                         27<F1>
<SHARES-REINVESTED>                                 11<F1>
<NET-CHANGE-IN-ASSETS>                           32511
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          178
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              465
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    833
<AVERAGE-NET-ASSETS>                              3959<F1>
<PER-SHARE-NAV-BEGIN>                             9.99<F1>
<PER-SHARE-NII>                                    .58<F1>
<PER-SHARE-GAIN-APPREC>                            .14<F1>
<PER-SHARE-DIVIDEND>                               .58<F1>
<PER-SHARE-DISTRIBUTIONS>                          .05<F1>
<RETURNS-OF-CAPITAL>                                 0<F1>
<PER-SHARE-NAV-END>                              10.08<F1>
<EXPENSE-RATIO>                                   1.08<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>CLASS B
</FN>
        

</TABLE>


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