<PAGE> 1
Municipal
Income Funds
Semi-Annual Report
For the six months ended December 31, 1997
INTERMEDIATE TAX-FREE BOND FUND
MUNICIPAL INCOME FUND
KENTUCKY MUNICIPAL BOND FUND
OHIO MUNICIPAL BOND FUND
LOUISIANA MUNICIPAL BOND FUND
WEST VIRGINIA MUNICIPAL BOND FUND
ARIZONA MUNICIPAL BOND FUND
[THE ONE GROUP FAMILY OF MUTUAL FUNDS LOGO]
<PAGE> 2
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| IMPORTANT CUSTOMER INFORMATION. INVESTMENT PRODUCTS: |
| |
| o are not deposits or obligations of, or guaranteed by, |
| BANC ONE CORPORATION or any of its affiliates. ---- |
| FDIC |
| o are not insured by the FDIC, and LOGO |
| ---- |
| o are subject to investment risks, including possible |
| loss of the principal amount invested. |
| |
<PAGE> 3
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Table of Contents
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
Report From Your Investment Advisor........................................ 2
Portfolio Performance Review............................................... 4
Schedules of Portfolio Investments......................................... 7
Statements of Assets and Liabilities....................................... 61
Statements of Operations................................................... 63
Statements of Changes in Net Assets........................................ 65
Notes to Financial Statements.............................................. 68
Financial Highlights....................................................... 77
1
<PAGE> 4
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Report From Your Investment Advisor
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
We are pleased to present this semiannual report for The One Group(R) Family of
Mutual Funds. On the following pages, you will find an overview of the financial
markets and your fund's performance for the period from July 1, 1997, through
December 31, 1997.
DEAR VALUED SHAREHOLDER:
Thank you for continuing to support The One Group Family of Mutual Funds during
an interesting, challenging and ultimately rewarding year for investors.
Despite strong volatility throughout 1997 and turmoil in Asia, the Dow Jones
Industrial Average was up 24.94% for 1997. Never before had the index returned
more than 20% for three consecutive years. The S&P 500 Index soared even higher,
closing the year up 33.36%.
At the same time, and largely the result of low inflation, a strong U.S. dollar
and the flight to quality spurred by the Asian crisis, U.S. bond yields ended
the year on an impressive note. The 30-year Treasury, for example, ended the
year yielding 5.92%, close to its 20-year low. (As bond yields fall, bond prices
go up.)
ONCE AGAIN, A PHILOSOPHY REINFORCED
While the calendar-year returns for both the stock and bond markets are
impressive, events in the final six months of 1997 may be the most memorable. On
August 6, the Dow closed at 8,259, a record high and its peak for the calendar
year. Shortly thereafter, though, volatility rocked the market, as the effects
of the Asian financial crisis worked their way west. These forces culminated on
Monday, October 27, when the Dow plummeted more than 554 points, its
largest-ever point decline.
This drop may be the defining moment for 1997's financial markets, and it
presented a significant challenge for investors. But, rather than panicking,
shareholders of The One Group demonstrated a clear understanding of market
dynamics and the importance of maintaining a long-term investment philosophy.
I am pleased to report that there were no significant redemptions of One Group
shares after "Black Monday." To us, this implies that our investors understand
the potential dangers of selling their investments based on short-term
volatility. In fact, The One Group experienced a record purchase day on Tuesday,
October 28, indicating that investors realize the benefits of staying focused on
the stock market's long-term potential.
TAX BILL CHANGES FACE OF INVESTING
The second half of 1997 may be remembered as much for the jubilance it brought
investors as for the turmoil. The Taxpayer Relief Act of 1997 became law,
ushering in lower capital gains taxes for investors and new investment
opportunities poised to change the face of investing for years to come.
The cut in the capital gains tax rate may make investing in stocks even more
attractive for many investors. As you are planning for your future financial
needs and taking into consideration your appropriate asset allocation, please do
not overlook the impact of the new tax treatment of capital gains.
And, while you're planning for your financial future, take note that the 1997
tax law makes investing in IRAs even more attractive, particularly with the
introduction of the Roth IRA, a new type of account that offers tax-exempt
distributions in retirement. In addition, the Traditional IRA has been enhanced
with many new features.
The One Group can help you incorporate any of these retirement accounts into
your investment plan. Speak to your investment representative or call
1-800-480-4111 for more information on IRAs.
SEEK ADVICE FOR A YEAR'S WORTH OF EVENTS
With 1997's record volatility and the new investment opportunities introduced by
the tax law, now may be an ideal time to meet with your investment professional
and make sure your investment plan remains on track to meet your financial
needs.
As you probably know, your asset allocation--or the way your investment dollars
are strategically distributed among stock, bond and cash investments according
to your goals, risk tolerance and investing time frame--may be the
single-greatest determinant of your long-term investment success. After a year
full of market ups and downs, your asset allocation probably shifted. For
example, stock market appreciation may have caused your allocation to equities
to swing higher than called for in your plan. Your investment professional can
help you evaluate your plan and, if necessary, get it back on track.
2
<PAGE> 5
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Report From Your Investment Advisor, continued
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
Furthermore, your investment representative can help you make the most of the
Taxpayer Relief Act of 1997. Many of the provisions take effect with the 1998
tax year, so make sure you start off the year with the strategy that's most
appropriate for you.
Thank you for investing with The One Group Family of Mutual Funds and for your
ongoing support of the firm's time-tested investment philosophies. We look
forward to helping you achieve your financial goals in 1998 and beyond.
Sincerely,
/s/ David J. Kundert
- --------------------
David J. Kundert
President and CEO,
Banc One Investment Advisors Corporation,
Investment Advisor to The One Group
David J. Kundert photo
For a prospectus with more complete information on The One Group Investor Funds,
including management fees and expenses, please contact The One Group at
1-800-480-4111. Please read the prospectus carefully before investing.
(2/98)
3
<PAGE> 6
Portfolio Performance Review
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
ECONOMIC GROWTH REMAINS STRONG
Despite showing a slight slowdown from the first half of the year, U.S. economic
growth during the second half of 1997 remained robust at a growth rate of 3.7%.
For the entire 12-month period, the U.S. economy grew by a 3.8% growth rate.
Firm employment gains and strong consumer confidence fueled the growth rate. The
unemployment rate headed steadily downward, ending the year at 4.7%. The economy
witnessed an average of 301,500 new non-farm jobs being created per month, when
all that is needed to absorb the growth in the labor force and keep the
unemployment rate steady is 150,000.
LONG-TERM INTEREST RATES DECLINE
Slightly higher inflation in 1996 kept long-term interest rates relatively high
throughout much of 1997. With prices climbing 3.3% on a year-over-year basis in
1996, investors feared that inflation would keep that pace or even climb higher
in 1997.
But, as the year unfolded it became apparent that inflation was, indeed, under
control. For the final six months of the year the inflation rate was 2.0%, and
for the entire year prices were up only 1.7%, the best performance in 11 years.
Low prices helped pave the way for a significant decline in long-term interest
rates by the end of the year. Also significant was the impact of the Asian
financial crisis, which caused currency values to plunge and sent financial
markets into turmoil. As worldwide events unfolded during the second half of the
year, it became clear that the Asian economies would weaken. This caused
investors throughout the world to turn to the safety of U.S. Treasury
securities, which helped drive up prices.
As a result of these events, long-term interest rates showed a significant
decline during the second half of 1997--a decline that was much greater than the
economic fundamentals supported. At the end of the year, the yield on the
30-year U.S. Treasury bond was 5.92%, after starting the year at 6.64% and
climbing to a high of 7.17% in early April.
FED REMAINS IDLE
The Federal Reserve remained on the sidelines during the second half of the
year, after raising interest rates just once in all of 1997--a 0.25% increase of
the federal funds rate in March. This lack of monetary policy action kept
short-term interest rates relatively steady for the remainder of the year.
The impact of the Asian currency crisis and market meltdowns may have
contributed to the Fed's decision to keep rates unchanged in the second half of
1997. While strong economic growth certainly created a valid reason for another
rate hike, the Fed resisted the temptation, figuring that the Asian situation
would contribute to slower growth ahead.
LOOKING AHEAD
In terms of U.S. economic growth, the Asian crisis remains a factor that can't
be ignored. Thirty percent of U.S. exports go to Asia, and with many Asian
countries facing currency devaluations of 35% to 80%, consumers in that region
have significantly less purchasing power. Furthermore, there's the possibility
that this currency crisis could spread to Latin America, where another 20% of
U.S. exports are at risk if there are some currency devaluations.
The United States accounts for 28% of the non-Asian global economy, and,
therefore, should be heavily influenced by the change in trade flows from Asia.
Asian stock markets have dropped nearly 70% over the last several months, which
undoubtedly will be reflected in lower overall consumption, particularly for
foreign imports. And, as prices on goods produced in Asia continue to fall, U.S.
imports from that region should go up.
As a result, cheaper goods coming from Asia, and possibly Latin America, should
force domestic competitors to lower their prices (or face sharply lower sales
prospects). This could push the U.S. inflation rate to as low as 1.5% in 1998,
compared to 1.7% in 1997 and 3.3% in 1996. At the same time, fewer U.S. exports
and greater imports should cause economic growth to slow to a 2% year-over-year
average for 1998.
4
<PAGE> 7
Portfolio Performance Review, continued
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
Given all the instability overseas and the impending effects of a slowdown in
the U.S. economy, we believe that the Federal Reserve will lower interest rates
in 1998, probably sometime in the second half of the year. Long-term interest
rates should continue their downward trend, due to lower inflation and lower
economic growth. By the end of the year, we may see the yield on the 30-year
Treasury bond somewhere between 5.5% and 5.75%.
/s/ Anthony Chan
- -------------------
Anthony Chan, Ph.D.
Managing Director and Chief Economist
Banc One Investment Advisors
5
<PAGE> 8
Portfolio Performance Review
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THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1997
AS VOLATILITY HEATS UP, INTEREST RATES DECLINE
Volatility initiated by financial and market distress in Asia was the key factor
at work in the bond market during the second half of 1997. As Asian currencies
fell, the credit quality of Yankee bonds (securities that represent
dollar-denominated, foreign-issued debt) deteriorated rapidly, causing the
Yankee bond market to experience substantial losses in select issues.
Furthermore, because credit ratings in the region have been significantly
downgraded, it has been very difficult for Asian governments and corporations to
issue new bonds to finance their ongoing operations.
Long-term U.S. interest rates fell as a result of the immediate flight to
quality and the longer-run implications for slower domestic growth and lower
inflation. The five-year U.S. Treasury, for example, declined by 67 basis points
(one basis point equals 1/100th of a percent) during the period, from 6.37% to
5.70%.
SMART STRATEGIES LEAD TO SOLID FUND RETURNS
In absolute terms, all of The One Group bond funds enjoyed share price increases
and solid total returns due to the declining interest rate environment in the
second half of the year. Funds with longer durations and strong exposure to U.S.
government securities performed the best. (Duration is a measure of a fund's
sensitivity to interest rate changes. A higher number indicates greater
sensitivity; a lower number indicates less sensitivity.) Funds with exposure to
corporate and Yankee bonds posted gains, but they lagged their competitors.
We attribute the funds' relatively strong performance to the strategies we
implemented early in the year. After the first quarter, when yields on 10-year
Treasury bonds approached 7%, we positioned our portfolios to take advantage of
the added yield available as well as the expected decline in rates. That
cautious stance early in the year allowed our fund managers to take advantage of
the weaker market at that time and position their portfolios for the friendlier
market that was to come later in the year.
Furthermore, as we entered 1997, tight yield spreads (or differences in yield
relative to risk) versus Treasuries and the extended length of the business
cycle caused us to take a very cautious stance toward the corporate sector. In
fact, we limited our corporate exposure during the year to securities in the
short to intermediate maturity range, which proved to be an appropriate
strategy. Overall, the corporate sector underperformed Treasuries, but in the
short to intermediate range, corporate performance matched that of the Treasury
market.
Finally, we remained positive toward mortgage-backed securities, which continued
to perform in line with or better than U.S. Treasuries until December, when
spreads widened due to lower mortgage rates and growing prepayment risks.
Overall, mortgages outperformed Treasuries by 92 basis points during the final
six months of the year.
MUNICIPAL MARKET REMAINS FAVORABLE
Technical supply and demand forces remained positive during the period, which
led to solid returns in the municipal bond market. The One Group municipal bond
funds posted relatively strong returns, reinforcing the continued performance
consistency of the fund family's national and state-specific municipal bond
funds.
Compared to the U.S. Treasury market, though, the municipal bond market was
unable to keep pace during the six-month period, as intermediate-term municipal
securities underperformed comparable Treasuries by about 50 basis points.
FLIGHT TO QUALITY BENEFITS MONEY MARKETS
Short-term interest rates remained relatively stable throughout the period. Late
in the year, though, the money markets benefited from reduced supply and the
strong demand that emerged after the financial crisis in Asia. As uncertainty
reigned, investors throughout the world sought safety in the form of
shorter-term, less volatile U.S. money market instruments.
All of The One Group money market funds maintained their stringent quality and
liquidity standards during the period and generated solid returns.
FOCUS REMAINS ON VOLATILITY
Low inflation and slowing domestic growth should lead to lower interest rates in
1998. At the same time, we expect price volatility to increase, which will cause
us to maintain a fairly cautious stance in terms of duration, credit quality and
overall risk management.
While corporate bonds may remain under pressure in 1998, we still expect them to
offer good performance versus other sectors, as corporate America remains strong
and any weakness will likely be modest. Mortgage-backed securities and municipal
securities also may be under pressure due to rising prepayments and refinancing
concerns. Municipals will be aided to some degree by continued strong supply and
demand influences. In the mortgage-sector we will look for issues offering good
structure, or less prepayment risk.
For individual investors, the key to success in this type of environment is to
diversify. Find a portfolio mix that suits your objectives, and stick with it
for the long haul. And remember, volatility can create attractive opportunities,
particularly for those of us who take the time to apply a long-term process and
orientation to our strategic thinking and to our management of money.
/s/ Gary J. Madich
- ------------------
Gary J. Madich
Senior Managing Director of Fixed-Income Securities
Banc One Investment Advisors Corporation
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
6
<PAGE> 9
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The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (103.5%):
Alaska (0.6%):
$ 1,000 Anchorage, GO, 6.00%, 10/1/10,
FGIC............................. $ 1,134
2,000 State Housing Finance, Series A-1,
5.30%, 12/1/12, Callable 12/1/07
@ 102, MBIA...................... 2,018
--------
3,152
--------
Arizona (2.3%):
1,000 Educational Loan Marketing Corp.,
AMT, 7.30%, 9/1/03, Callable
9/1/99 @ 102, MBIA............... 1,057
1,000 Educational Loan Marketing Corp.,
AMT, 7.35%, 9/1/04, Callable
9/1/99 @ 102, MBIA............... 1,056
775 Educational Loan Marketing Corp.,
AMT, 7.38%, 9/1/05, Callable
9/1/99 @ 102, MBIA............... 819
1,105 Maricopa County Development
Authority, Multifamily Housing,
5.65%, 1/1/09, Callable 1/1/07
@ 101............................ 1,134
1,280 Maricopa County Development
Authority, Multifamily Housing,
6.05%, 7/1/17, Callable 1/1/07
@ 101............................ 1,324
700 Phoenix Industrial Development
Authority, 6.00%, 12/1/10,
Callable 12/1/03 @ 102........... 735
2,835 Phoenix Airport Revenue, AMT,
Series D, 6.00%, 7/1/06, MBIA.... 3,121
2,060 Pima County, Arizona Industrial
Development Authority, 5.45%,
4/1/10, Callable 4/1/07 @ 102,
MBIA............................. 2,198
--------
11,444
--------
Arkansas (1.7%):
5,265 Conway Sales & Use Tax, Series A,
5.20%, 12/1/12, Callable 12/1/06
@ 101, FSA....................... 5,376
1,000 Jefferson County, Pollution Control
Revenue, 5.60%, 10/1/17, Callable
12/1/02 @ 102.................... 1,008
1,060 Sebastian County, Community Junior
College, 5.35%, 4/1/10, Callable
4/1/07 @ 101, AMBAC.............. 1,119
1,000 State Capital Appreciation, Series
97A, 0.00%, 6/1/14............... 426
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arkansas, continued:
$ 580 State Development Authority, Single
Family Mortgage Revenue, Series
G, 5.50%, 1/1/10................. $ 601
--------
8,530
--------
California (4.3%):
2,000 ABAG Finance Authority for
Nonprofit Corp., 5.75%, 10/1/17,
Callable 10/1/07 @ 102........... 2,057
2,000 ABAG Finance Authority for
Nonprofit Corp., Multi-Family
Housing Revenue, AMT, 5.70%,
11/1/26, Callable 11/1/06 @
100.............................. 2,115
1,945 ABAG Finance Authority,
Multi-Family Housing Revenue,
AMT, 6.75%, 4/20/07, GNMA........ 2,144
500 Castaic Lake Water Agency,
Certificates Partnership, Water
System Improvement Project,
7.00%, 8/1/04, Callable 8/1/00 @
102, MBIA........................ 547
3,500 Long Beach Harbor, Series A, AMT,
6.00%, 5/15/12, FGIC............. 3,883
1,000 Los Angeles County California
Public Works, 5.13%, 6/1/17,
Callable 6/1/06 @ 101, AMBAC..... 1,000
1,750 Riverside County, 5.75%, 6/1/09.... 1,953
3,000 Sacramento Municipal Utility
District, 5.40%, 11/15/06,
Callable 11/15/03 @ 102, FSA..... 3,167
1,000 San Francisco City & County
Airports, Common International
Airport Revenue, 6.30%, 5/1/11,
Callable 5/1/02 @ 102, AMBAC..... 1,090
1,000 Southern Public Power Authority,
Transmission Project, Revenue,
0.00%, 7/1/15, MBIA.............. 411
1,000 State, 7.00%, 10/1/07.............. 1,206
1,400 State Wide Communities Development,
2.40%, 1/1/09, Callable 1/1/04 @
102, AMBAC....................... 1,368
--------
20,941
--------
Colorado (11.1%):
3,290 Arapahoe County, Capital
Improvements, Project E-470,
0.00%, 8/31/03................... 2,583
1,135 Arapahoe County, School District #
001 Englewood, 0.00%, 11/1/09.... 656
</TABLE>
Continued
7
<PAGE> 10
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The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
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SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 1,580 Boulder County, Revenue, NCAR
Project, 6.90%, 12/1/07, Callable
12/1/01 @ 101.................... $ 1,738
2,000 Boulder Larimer & Weld Counties,
5.00%, 12/15/18, Callable
12/15/07 @ 101, FGIC............. 1,979
3,195 Centennial Water & Sanitation,
Series A, 5.13%, 12/1/12,
Callable 12/1/07 @ 101, FSA...... 3,264
875 Denver City & County, Airport
Revenue, AMT, 6.75%, 11/15/13,
Callable 11/15/02 @ 102,
MBIA-IBC......................... 963
2,000 Denver City & County, Airport
Revenue, Series B, AMT, 5.75%,
11/15/09, Callable 11/15/06 @
102, MBIA........................ 2,176
9,750 Denver City & County, School
District # 1, GO, 0.00%,
12/1/06.......................... 6,508
1,000 Denver City & County, School
District, No. 001, GO Refunding,
6.50%, 12/1/10................... 1,185
3,000 El Paso County, School District,
7.13%, 12/1/19, Callable 12/1/07
@ 125............................ 3,829
1,135 Health Facilities Authority
Revenue, 6.40%, 1/1/10, Callable
1/1/07 @ 101..................... 1,186
370 Housing Finance Authority, 5.25%,
5/1/05........................... 381
255 Housing Finance Authority, AMT,
5.63%, 5/1/04.................... 266
3,220 Housing Finance Authority, GO,
Series A, 6.40%, 8/1/06, Callable
8/1/02 @ 102, MBIA............... 3,404
4,000 Housing Finance Authority,
Multifamily Program, 5.65%,
10/1/15, Callable 1/26/98 @
100.............................. 4,009
3,000 Housing Finance Authority,
Multifamily Program, 5.70%,
10/1/21, Callable 1/26/98 @
100.............................. 3,019
700 Housing Finance Authority,
Refunding, Single Family, Series
D, 5.65%, 12/1/04, Callable
5/1/03 @ 100..................... 725
3,250 Housing Finance Authority, Series
97 B-3, 6.80%, 11/1/28, Callable
5/1/07 @ 105..................... 3,647
250 Housing Finance Authority, Series
C, AMT, 5.00%, 5/1/05............ 253
665 Housing Finance Authority, Single
Family Program, Series F, AMT,
6.75%, 12/1/04................... 694
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 500 Jefferson County, Partnership,
6.45%, 12/1/04, Callable 12/1/02
@ 102, MBIA...................... $ 555
4,000 Meridian Metropolitan District,
7.50%, 12/1/11, Callable 12/1/01
@ 101............................ 4,411
325 Mountain Village Metropolitan
District, San Miguel County,
8.10%, 12/1/11, Callable 12/1/02
@ 101............................ 377
675 Mountain Village Metropolitan
District, San Miguel County,
8.10%, 12/1/11, Prerefunded
12/1/02 @ 101.................... 794
1,535 Pueblo County, Single Family
Mortgage Revenue, 6.40%, 11/1/13,
Callable 11/1/04 @ 102........... 1,626
1,065 Student Obligation, 6.00%,
9/1/01........................... 1,123
740 Student Obligation Bond Authority,
Student Loan Revenue, AMT, 7.25%,
9/1/05, Callable 9/01/00 @ 100... 777
1,250 Summit County, School District No.
1, Refunding, 6.75%, 12/1/04,
FGIC............................. 1,436
--------
53,564
--------
Connecticut (2.2%):
1,000 Bridgeport, Refunding, 6.50%,
9/1/08, AMBAC.................... 1,176
2,100 State Clean Water Fund Revenue,
5.13%, 5/1/18, Callable 5/1/05
@ 101............................ 2,104
1,575 State GO, Series A, 5.30%, 5/15/10,
Callable 5/15/06 @ 101........... 1,658
2,475 State GO, Series B, 6.00%,
10/1/05.......................... 2,753
1,015 State Health & Educational
Facilities, Series 97E, 5.50%,
7/1/09, Callable 7/1/07 @ 102.... 1,067
1,695 State Housing Finance Authority,
6.70%, 11/15/12, Callable
11/15/02 @ 102................... 1,824
--------
10,582
--------
Florida (4.5%):
5 Broward County, Florida Resource
Recovery Revenue, North, 7.95%,
12/1/08, Callable 12/1/99 @
103.............................. 5
1,260 Broward County, Housing Authority,
5.55%, 7/1/09, Callable 7/1/06 @
102.............................. 1,309
1,500 Cape Coral, Special Obligation
Revenue, Water Improvements,
Special Assessment - Water
Utility, 6.38%, 6/1/09, Callable
6/1/02 @ 102, FSA................ 1,644
</TABLE>
Continued
8
<PAGE> 11
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Florida, continued:
$ 1,305 Clay County, Housing Finance
Authority Revenue, Single Family
Mortgage, AMT, 6.20%, 9/1/11,
Callable 3/1/05 @ 102............ $ 1,380
1,010 Clay County, Housing Finance
Authority Revenue, Single Family
Mortgage, AMT, 6.25%, 9/1/13,
Callable 3/1/05 @ 102............ 1,068
2,010 Clay County, Housing Financial
Authority, AMT, 5.25%, 10/1/07,
Callable 4/1/07 @ 102............ 2,072
1,000 Dade County, Aviation Revenue,
Series A, 6.00%, 10/1/08,
Callable 10/1/05 @ 102, AMBAC.... 1,111
1,155 Department of Corrections,
Okeechobee Correctional Facility,
6.00%, 3/1/06, Callable 3/1/05 @
102, AMBAC....................... 1,288
2,000 Escambia County, Housing Finance
Authority, Multifamily Housing
Revenue, 5.75%, 4/1/04, Callable
12/30/03 @ 100, GNMA............. 2,052
5,000 Greater Orlando Aviation Authority,
AMT, 5.13%, 10/1/15, Callable
10/1/07 @ 101, FGIC.............. 4,987
1,185 Indian River County, Hospital
Revenue, 5.95%, 10/1/09, Callable
1/1/07 @ 102, FSA................ 1,327
1,285 Indian River County, Hospital
Revenue, 6.00%, 10/1/10, Callable
1/1/07 @ 102, FSA................ 1,399
235 Manatee County, Housing Finance
Authority, Mortgage Revenue,
6.38%, 11/1/05................... 242
530 Manatee County, Housing Finance
Authority, Mortgage Revenue,
6.75%, 11/1/13................... 572
1,000 Orlando Water & Electricity
Revenue, 8.00%, 4/1/03........... 1,178
655 Tampa Water & Sewer Revenue, ETM,
0.00%, 10/1/05................... 486
--------
22,120
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Georgia (0.9%):
$ 1,500 Atlanta Airport Facilities, 6.50%,
1/1/08, AMBAC.................... $ 1,752
1,000 Atlanta Airport Facilities Revenue,
Series A, 6.50%, 1/1/07, AMBAC... 1,156
1,215 Columbus Water & Sewer Revenue,
6.30%, 5/1/06, Callable 11/1/02 @
102, FGIC........................ 1,335
--------
4,243
--------
Hawaii (1.1%):
1,000 Honolulu City & County, GO, Series
A, 5.60%, 4/1/07, FSA............ 1,086
3,500 Honolulu City & County, GO, Series
A, 7.35%, 7/1/08................. 4,336
--------
5,422
--------
Idaho (3.5%):
1,630 Bannock County School District, No.
025, 5.00%, 8/1/10, Callable
8/1/07 @ 100..................... 1,673
1,695 Bannock County School District, No.
025, 5.10%, 8/1/12, Callable
8/1/07 @ 100..................... 1,733
900 Housing Agency, Single Family
Mortgages, Series D1, 5.90%,
7/1/06........................... 943
1,600 Southern Idaho Regional Solid Waste
District, 5.45%, 11/1/13,
Callable 11/1/03 @ 101, LOC:
Credit Local de France........... 1,655
1,515 Student Loan Fund Marketing
Association, Inc., 6.40%,
10/1/99, GSL..................... 1,551
1,000 Student Loan Fund Marketing
Association, Inc., AMT, 5.10%,
4/1/02, GSL...................... 1,011
4,500 Student Loan Fund Marketing
Association, Inc., Series C, AMT,
5.60%, 4/01/07, Callable,
10/01/03 @ 102, GSL.............. 4,731
1,050 Student Loan Fund Marketing
Association, Inc., Student Loan
Revenue, 6.25%, 4/1/98........... 1,053
1,300 University of Idaho, University
Revenue, 5.75%, 4/1/06, FSA...... 1,427
1,060 University of Idaho, University
Revenue, 5.50%, 4/1/13, Callable
4/1/07 @ 101, MBIA............... 1,118
--------
16,895
--------
</TABLE>
Continued
9
<PAGE> 12
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Illinois (6.6%):
$ 1,000 Chicago Metro Water Reclamation
District--Greater Chicago Capital
Improvements, GO, Pre-Refunded,
7.25%, 12/1/12................... $ 1,262
4,245 Chicago Metro Water Reclamation
District--Greater Chicago Capital
Improvements, GO, Pre-Refunded,
6.25%, 12/1/14, Callable 12/1/05
@ 100............................ 4,791
3,045 Chicago Park District, GO, 6.35%,
11/15/08, Callable 11/15/05 @
102, MBIA........................ 3,436
2,585 Chicago Water Revenue, 6.50%,
11/1/10, FGIC.................... 3,050
1,450 Chicago, Single Family Mortgage
Revenue, 0.00%, 10/1/09, Callable
10/1/05 @ 78.60, MBIA............ 711
1,595 Chicago, Single Family Mortgage
Revenue, 0.00%, 10/1/09, Callable
4/1/98 @ 48.84, MBIA............. 720
705 Decatur Economic Development,
7.75%, 6/1/07, Callable 6/1/02 @
102.............................. 798
7,125 Development Finance Authority,
Pollution Control Revenue, 7.25%,
6/1/11, Callable 6/1/01 @ 102.... 7,785
875 Evanston Residential Mortgage,
6.38%, 1/1/09, Callable 7/1/02 @
102, AMBAC....................... 929
458 Health Facilities Authority
Revenue, 7.90%, 8/15/03, Callable
2/10/98 @ 101, MBIA.............. 464
1,645 Health Facilities Authority
Revenue, 6.13%, 11/15/07,
Callable 11/15/04 @ 102, MBIA.... 1,821
1,500 Health Facilities Authority
Revenue, 6.75%, 1/1/10, Callable
1/1/00 @ 102, FGIC............... 1,592
1,125 Kane & De Kalb Counties, School
District #32, 0.00%, 1/1/13,
FGIC............................. 533
2,500 Student Assistance, Student Loan
Revenue, Series M, AMT, 6.60%,
3/1/07, Callable 3/1/02 @ 102.... 2,686
1,350 Winnebago County, School District
No. 122, Harlem-Loves Park,
Refunding, 6.35%, 6/1/07, FGIC... 1,552
--------
32,130
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Indiana (2.7%):
$ 2,150 Brownsburg Indiana Building, 5.50%,
2/1/15, Callable 2/1/07 @ 102,
MBIA............................. $ 2,231
1,000 Fort Wayne Hospital Authority,
Parkview Memorial Hospital
Project, Series A, 7.50%,
11/15/11, Callable 11/15/99 @
102, FGIC........................ 1,074
500 Indiana State University, 6.90%,
8/1/03, Callable 8/1/00 @ 102.... 544
2,840 Indianapolis Economic Development
Revenue, Knob-in-the-Woods
Project, 6.38%, 12/1/04,
Mandatory Put 12/1/04 @ 100...... 3,141
500 Lawrence Township School District,
6.75%, 1/5/05.................... 569
1,500 New Albany Floyd County, School
Building, 6.20%, 7/1/03.......... 1,638
1,500 New Albany Floyd County, School
Building, 6.20%, 7/1/04.......... 1,656
1,000 Noblesville Hamilton County,
Building, 7.00%, 2/1/13,
Prerefunded 2/1/01 @102.......... 1,101
1,000 State Vocational Technical College
Building Facilities Fee, 6.50%,
7/1/07, Callable 1/1/05 @ 102,
AMBAC............................ 1,140
--------
13,094
--------
Iowa (1.2%):
700 Des Moines Water Revenue, Series B,
5.50%, 12/1/04, Callable 12/1/01
@ 100............................ 729
1,675 Finance Authority, 6.35%, 7/1/09,
Callable 1/1/03 @ 102, AMBAC..... 1,776
1,000 Finance Authority, Private College
Revenue, 5.75%, 12/1/08, MBIA.... 1,113
860 Finance Authority, Single Family
Mortgage Revenue, Series F,
6.15%, 7/1/04, Callable 1/1/03 @
102, AMBAC....................... 892
1,500 Student Loan Liquidity Corp.,
Student Loan Revenue, Series C,
6.50%, 12/1/99, AMBAC............ 1,565
--------
6,075
--------
</TABLE>
Continued
10
<PAGE> 13
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kansas (1.1%):
$ 2,220 Sedgwick & Shawnee, Single Family
Revenue, 5.50%, 6/1/29, Step
Coupon, 6.70% after 10/1/98...... $ 2,464
850 Sedgwick County, Family Mortgage
Revenue, Series A-1, 6.50%,
12/1/16, Callable 12/1/07 @ 105,
GNMA............................. 919
1,750 Wichita Hospital Revenue, St.
Francis Regional Hospital, 6.25%,
10/1/10, Callable 10/1/02 @ 102,
MBIA............................. 1,902
--------
5,285
--------
Kentucky (0.8%):
800 Campbell & Kenton Counties,
Sanitation District #1, 6.50%,
8/1/05, ETM...................... 836
1,000 Kenton County, Public Properties
Corp., 5.63%, 12/1/12, Callable
12/1/06 @ 101.................... 1,062
2,000 Owensboro Electric Light & Power
Revenue, 0.00%, 1/1/09, Callable
1/1/98 @ 33.44, BIG.............. 690
1,000 Winchester Industrial Building,
7.75%, 7/1/12, Callable 7/1/02 @
102.............................. 1,135
--------
3,723
--------
Louisiana (0.8%):
239 Housing Agency Mortgage Revenue,
7.80%, 12/1/09, Callable 6/1/04 @
105, GNMA........................ 269
1,550 Public Facilities Authority
Revenue, AMT, 6.75%, 9/1/06,
Callable 9/1/02 @ 102............ 1,647
2,000 St. Charles Parish Pollution
Control, 8.25%, 6/1/14, Callable
6/1/99 @ 103..................... 2,155
--------
4,071
--------
Maryland (0.6%):
1,150 Anne Arundel County, GO, Series B,
AMT, 7.70%, 3/15/06, Callable
3/15/99 @ 102.................... 1,219
1,500 State Health & Education, John
Hopkins, 6.00%, 7/1/10........... 1,674
--------
2,893
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Massachusetts (1.4%):
$ 1,650 Beverly, 6.60%, 3/15/09, Callable
3/15/04 @ 102, FSA............... $ 1,859
740 Education Loan Authority, AMT,
7.25%, 1/1/09, Callable 1/1/01 @
102.............................. 797
2,400 State, GO, Series C, 6.00%,
8/1/09........................... 2,721
1,465 Worcester, GO, Series A, 6.10%,
5/1/08, Callable 5/1/05 @ 102,
MBIA............................. 1,630
--------
7,007
--------
Michigan (0.8%):
2,000 State Hospital Finance Authority
Revenue, Mercy Mount Clemens
Corp., 6.25%, 5/15/11, Callable
5/15/01 @ 102.................... 2,124
1,500 State Hospital Finance Authority,
Series A, 8.10%, 10/1/13,
Callable 10/1/05 @ 102........... 1,787
--------
3,911
--------
Minnesota (0.3%):
1,500 Northern Municipal Power Agency,
Minnesota Electric, Series A,
5.90%, 1/1/07, Callable 1/1/03 @
102, AMBAC....................... 1,639
--------
Mississippi (0.4%):
1,475 Home Corp., Single Family Series D,
5.25%, 7/1/12, Callable 7/1/07 @
105, FNMA/GNMA................... 1,617
1,005 State Housing Finance Corp., 0.00%,
9/15/16.......................... 380
--------
1,997
--------
Missouri (2.9%):
1,895 Carthage Waterworks & Wastewater
Treatment Systems, 6.30%, 7/1/09,
Callable 7/1/04 @ 101, MBIA...... 2,100
1,520 Fort Zumwalt School District,
5.20%, 3/1/09, Callable 3/1/07 @
100, AMBAC....................... 1,588
1,735 Fort Zumwalt School District,
5.30%, 3/1/10, Callable 3/1/07 @
100, AMBAC....................... 1,813
1,415 Kansas City Industrial Development
Authority, Multifamily Housing
Revenue, Series A, AMT, 5.63%,
7/1/05........................... 1,491
1,430 Kansas City Municipal Corp.
Revenue, 5.40%, 1/15/08, Callable
1/15/06 @ 101, AMBAC............. 1,526
</TABLE>
Continued
11
<PAGE> 14
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Missouri, continued:
$ 2,500 St. Louis Convention & Sports
Complex, 5.50%, 8/15/13, Callable
8/15/03 @ 102, MBIA.............. $ 2,589
2,955 St. Louis Land Clearance
Redevelopment Authority Housing
Revenue, 5.95%, 7/1/22, Mandatory
Put 4/1/07 @ 100, FNMA........... 3,169
--------
14,276
--------
Nebraska (0.5%):
2,250 Higher Education Loan Program,
Series A-6, AMT, 5.90%, 6/1/03... 2,370
--------
Nevada (1.6%):
1,025 Douglas County, School District,
Series A, 5.90%, 6/1/08, Callable
6/1/02 @ 101, FGIC............... 1,091
2,000 Las Vegas, Sewer Revenue, 6.60%,
10/1/12, Callable 4/1/02 @ 102,
FGIC............................. 2,223
1,000 Municipal Bond Bank Project
#20-23A, 7.00%, 7/1/01, ETM...... 1,043
3,010 Washoe County, School District, GO,
6.13%, 8/1/07, Callable 8/1/02 @
101, MBIA........................ 3,250
--------
7,607
--------
New Hampshire (0.3%):
1,225 Higher Education & Health
Facilities Authority Revenue,
6.25%, 1/1/06, Callable 7/1/04 @
102.............................. 1,360
--------
New Jersey (0.4%):
1,630 South Brunswick Township, 6.40%,
8/1/07, Callable 8/1/05 @ 100,
FGIC............................. 1,846
--------
New Mexico (3.5%):
68 Albuquerque, 7.65%, 8/15/07,
FGIC............................. 71
1,000 Albuquerque Airport Revenue, AMT,
6.50%, 7/1/11, Callable 7/1/00 @
105, AMBAC....................... 1,095
3,000 Albuquerque Gross Receipts Tax,
5.38%, 7/1/01, Callable 7/1/99 @
100, MBIA........................ 3,043
3,055 Bernalillo County, Gross Receipts
Tax, 5.75%, 10/1/15.............. 3,365
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Mexico, continued:
$ 1,195 Educational Assistance Foundation,
Student Loan Revenue, Series A,
AMT, 6.45%, 4/1/99, AMBAC........ $ 1,224
2,070 Educational Assistance Foundation,
Student Loan Revenue, Series A,
AMT, 6.55%, 4/1/00, AMBAC........ 2,156
5,455 Educational Assistance Foundation,
Student Loan Revenue, Series A,
AMT, 6.85%, 4/1/05, Callable
4/1/02 @ 102, AMBAC.............. 5,908
--------
16,862
--------
New York (4.8%):
1,500 Metropolitan Transportation
Authority, 6.38%, 7/1/10,
Callable 7/1/02 @ 102, FGIC...... 1,660
3,000 Metropolitan Transportation
Authority, Series B, 5.00%,
7/1/10, Callable 7/1/07 @ 102,
AMBAC............................ 3,078
2,950 Monroe County, 6.10%, 3/1/08,
Callable 3/1/01 @ 102, MBIA...... 3,171
1,395 Nassau County, 5.63%, 8/1/03,
FGIC............................. 1,492
1,500 State Dorm Authority, Series A,
5.50%, 7/1/04.................... 1,560
2,950 State Dorm Authority, Series A,
5.50%, 7/1/05.................... 3,066
1,500 State Dorm Authority, Series A,
5.50%, 7/1/06.................... 1,561
3,000 State, GO, Series B, 5.25%, 8/1/12,
Callable 8/1/07 @ 101............ 3,002
5,000 State, GO, Series F, 5.13%, 8/1/11,
Callable 2/1/08 @ 101............ 4,964
--------
23,554
--------
North Carolina (0.5%):
2,500 Educational Facilities, Wake
Forest, 5.00%, 11/1/12, Callable
11/1/07 @ 102.................... 2,532
--------
North Dakota (3.3%):
3,700 Grand Forks Health Care System,
5.60%, 8/15/17, Callable 8/15/07
@ 102, MBIA...................... 3,830
6,050 Grand Forks Sales Tax Revenue Bond,
5.10%, 12/15/10, Callable
12/15/07 @ 100................... 6,251
</TABLE>
Continued
12
<PAGE> 15
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
North Dakota, continued:
$ 600 Housing Finance Agency, AMT, 6.25%,
7/1/09, Callable 7/1/04 @ 102.... $ 622
3,500 Mercer County, Pollution Control
Revenue, 6.65%, 6/1/22, Callable
6/1/02 @ 102, FGIC............... 3,836
1,270 Water Development, 5.70%, 7/1/17,
Callable 7/1/07 @ 100, AMBAC..... 1,345
--------
15,884
--------
Ohio (2.2%):
500 Hamilton Waterworks Water Utility
Improvement, 6.40%, 10/15/07,
Callable 10/15/01 @ 102, MBIA.... 547
2,100 Mount Vernon, Industrial
Development Revenue, 5.90%,
3/1/03, Callable 3/10/98 @ 100... 2,104
2,500 Northeast Regional Sewer District,
5.60%, 11/15/13, Callable
11/15/05 @ 101, AMBAC............ 2,657
2,470 State Economic Development, 7.50%,
9/1/10, Callable 9/1/02 @ 102.... 2,785
2,500 State Higher Educational
Facilities, 0.00%, 7/1/07........ 2,458
--------
10,551
--------
Oklahoma (0.8%):
2,500 Baptist Health Center, IDR, 6.25%,
8/15/12, Callable 8/15/05 @ 102,
AMBAC............................ 2,784
1,000 Housing Finance Agency, PG-B-1,
5.60%, 3/1/28, Callable 9/1/07 @
102.............................. 1,022
--------
3,806
--------
Oregon (3.0%):
2,350 Jackson County, School District #5
Ashland, GO, 5.70%, 6/1/07,
FSA.............................. 2,591
2,580 Lane County, School District #019,
6.00%, 10/15/11, FGIC............ 2,924
1,000 Lane County, School District #52
Bethel, GO, 6.00%, 6/1/06, FSA... 1,120
3,630 Marion County, 5.50%, 10/1/05,
AMBAC............................ 3,916
1,435 Port of Portland Airport Revenue,
Series 7-A, 6.75%, 7/1/09,
Callable 7/1/01 @ 101, MBIA...... 1,566
2,075 Washington County, School District
No. 88, GO, 6.10%, 6/1/05,
Callable 12/15/04 @ 100, FSA..... 2,314
--------
14,431
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Pennsylvania (5.1%):
$ 3,500 Allegheny County, GO, 0.00%,
2/15/02, MBIA.................... $ 4,002
3,200 Dauphin County, Industrial
Development Authority, Pollution
Control Revenue, 6.00%, 1/1/08,
Callable 1/1/98 @ 100, MBIA...... 3,206
1,085 Delaware County, Pennsylvania
Hospital Authority, 6.00%,
12/15/20, Callable 12/1/03 @
102.............................. 1,125
2,700 Harrisburg, Capital Appreciation,
Series D, 0.00%, 3/15/13,
AMBAC............................ 1,263
1,800 Harrisburg, Capital Appreciation,
Series D, 0.00%, 9/15/13,
AMBAC............................ 821
2,505 Harrisburg, Capital Appreciation,
Series F, 0.00%, 3/15/13,
AMBAC............................ 1,172
1,665 Harrisburg, Capital Appreciation,
Series F, 0.00%, 9/15/13,
AMBAC............................ 760
1,500 Hospital Revenue Bond, 6.40%,
1/1/06, Callable 1/1/05 @ 102,
AMBAC............................ 1,698
2,750 Indiana County, Industrial
Development Authority, Pollution
Control Revenue, 6.00%, 6/1/06,
MBIA............................. 3,069
1,295 Millcreek Township School District
A, 0.00%, 9/15/11, FGIC.......... 659
2,350 Philadelphia Airport Revenue,
Series A, AMT, 5.50%, 6/15/05,
AMBAC............................ 2,508
2,500 Philadelphia Water & Waste, 5.65%,
6/15/12, Callable 6/15/03 @ 102,
FGIC............................. 2,600
2,000 State Financial Authority Revenue,
6.60%, 11/1/09, Callable 11/1/03
@ 102, LOC: Societe Generale..... 2,217
--------
25,100
--------
Puerto Rico (1.1%):
5,000 Commonwealth Infrastructure, Series
A, 5.25%, 7/1/10, Callable 7/1/08
@ 101, AMBAC..................... 5,250
--------
Rhode Island (0.2%):
1,000 Housing & Mortgage Financial Corp.,
Series 15-B, 6.20%, 10/1/06,
Callable 4/1/04 @ 102, MBIA...... 1,068
--------
</TABLE>
Continued
13
<PAGE> 16
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
South Carolina (2.1%):
$ 1,760 Greenville School Public
Facilities, 5.60%, 3/1/10........ $ 1,896
1,045 Hilton Head Island, GO, 5.50%,
8/1/09, MBIA..................... 1,138
1,270 Piedmont, Municipal Power Agency,
Electric Revenue, Series A,
5.25%, 1/1/11, MBIA.............. 1,333
1,360 Piedmont, Municipal Power Agency,
Electric Revenue, Series A,
5.50%, 1/1/13, MBIA.............. 1,453
250 Piedmont, Municipal Power Agency,
Electric Revenue, Series A,
6.55%, 1/1/16, Callable 1/1/98 @
100.............................. 250
2,250 State Electric Expansion System,
5.88%, 7/1/18, Callable 2/10/98 @
100.............................. 2,252
825 State Public Service, 5.88%,
7/1/18, Callable 2/10/98 @ 100,
MBIA............................. 826
1,000 York County, School District #3,
GO, 5.40%, 3/1/08, Callable
3/1/06 @ 101, FSA................ 1,069
--------
10,217
--------
South Dakota (1.4%):
3,675 Health & Educational Facility
Authority Revenue, St. Luke's
Midland Regional Medical, 6.63%,
7/1/11, Callable 7/1/01 @ 102,
MBIA............................. 3,991
250 State Lease Revenue, Series A,
6.48%, 9/1/05, FSA............... 281
2,645 Student Loan Assistance Corp.,
Student Loan Revenue, Series B,
AMT, 7.63%, 8/1/06, Callable
8/1/99 @ 102, MBIA............... 2,782
--------
7,054
--------
Tennessee (2.4%):
1,050 Chattanooga-Hamilton County,
Hospital Authority, Hospital
Revenue, 5.63%, 10/1/09, FSA..... 1,156
1,555 Dyer County, Industrial Development
Revenue, 6.00%, 2/1/07, Callable
2/1/04 @ 102..................... 1,655
2,000 Housing Development, 6.20%, 7/1/18,
Callable 7/1/05 @ 102............ 2,125
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee, continued:
$ 1,785 Memphis-Shelby Airport, 6.75%,
9/1/12, Callable 9/1/02 @ 102.... $ 1,966
1,330 Metropolitan Government, Nashville
& Davidson County, 7.00%,
1/1/14........................... 1,332
2,500 Shelby County, Series B, 5.00%,
8/1/11, Callable 8/1/07 @ 101.... 2,547
1,000 Trenton Industrial Development
Revenue, Series A, 5.40%,
10/1/02.......................... 1,002
--------
11,783
--------
Texas (7.7%):
2,800 Austin Housing Finance Corp.,
Single Family Mortgage Revenue,
AMT, ETM, 0.00%, 12/1/11......... 1,336
1,000 Austin Utility Systems Revenue,
0.00%, 5/15/08, MBIA............. 618
5,125 Cass County, Industrial Development
Revenue, Series A, 5.30%,
7/1/09........................... 5,335
5,000 Coastal Bend Health Facilities,
Incarnate Word Health Services,
5.93%, 11/15/13, Callable
11/15/02 @ 102, AMBAC............ 5,324
3,600 Grand Prairie Health Facilities
Refunding, Dallas/Fort Worth
Medical Center Project, 6.50%,
11/1/04, AMBAC................... 4,047
3,300 Grand Prairie Health Facilities
Refunding, Dallas/Fort Worth
Medical Center Project, 6.88%,
11/1/10, AMBAC................... 3,749
5,000 Harris County, Capital
Appreciation, Toll Road, Sub-Lien
A, GO, 0.00%, 8/15/03, MBIA...... 3,915
3,700 Harris County, Capital
Appreciation, Toll Road, Sub-Lien
A, GO, 0.00%, 8/15/05, MBIA...... 2,630
1,455 Health Facilities Development Corp.
Hospital Revenue, All Saints
Episcopal Hospital, 6.25%,
8/15/12, Callable 8/15/03 @ 102,
MBIA............................. 1,597
1,045 Housing Agency Residential
Development Revenue, Series D,
AMT, 8.40%, 1/1/21, Callable
7/1/99 @ 102..................... 1,095
900 San Antonio Electric & Gas, 6.50%,
2/1/12, Callable 2/1/99 @
101.5............................ 934
600 San Antonio Electric & Gas,
Refunding, 6.50%, 2/1/12......... 626
</TABLE>
Continued
14
<PAGE> 17
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
$ 1,000 San Antonio Electric & Gas, Series
B, 7.00%, 2/1/09, Callable 2/1/99
@ 101.5.......................... $ 1,046
345 Southeast Texas Housing Financial
Corp., Series B, 6.75%, 5/1/10... 362
1,245 State Higher Education Coordinating
Board, Student Loan, AMT, 7.45%,
10/1/06, Callable 10/1/01 @
102.............................. 1,348
1,020 Texas Tech University Revenues,
5.95%, 2/15/13, Callable 2/15/05
@ 100, AMBAC..................... 1,098
2,200 United Independent School District,
5.25%, 8/15/14, Callable 8/15/06
@ 100............................ 2,243
--------
37,303
--------
Utah (0.9%):
2,000 Intermountain Power Agency, Power
Supply Revenue, Series B, 6.50%,
7/1/09, MBIA..................... 2,353
4,750 Intermountain Power Agency, Series
D, 0.00%, 7/1/20, Callable 7/1/02
@ 20.61.......................... 800
1,340 State Housing Finance Authority,
AMT, 6.35%, 7/1/12, Callable
1/1/05 @ 102..................... 1,420
--------
4,573
--------
Vermont (0.3%):
1,430 University of Vermont & State
Agricultural College, Series 1973
A, 5.80%, 7/1/13, Callable
2/10/98 @ 101.................... 1,445
--------
Virginia (1.6%):
3,905 State Housing Development
Authority, Commonwealth Mortgage,
Series A, AMT, 6.80%, 7/1/06,
AMBAC............................ 4,265
1,340 State Housing Development
Authority, Commonwealth Mortgage,
Series J, 6.65%, 7/1/10, Callable
1/1/05 @ 102..................... 1,447
2,000 State Housing Development
Authority, Series B Sub B2,
6.70%, 1/1/15, Callable 1/1/06 @
102.............................. 2,199
--------
7,911
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Washington (4.1%):
$ 1,830 Chelan County, Washington Public
Utilities Revenue, 5.90%, 7/1/13,
Mandatory Put 7/1/03 @ 102....... $ 1,921
1,360 King County, School District #400,
GO, 6.50%, 12/1/08............... 1,602
1,084 Kitsap County, Consolidated
Housing, 7.00%, 8/20/08, GNMA.... 1,212
1,000 Seattle Light & Power Revenue,
6.00%, 8/1/13, Callable 8/1/02 @
102.............................. 1,065
1,000 Seattle Solid Waste, Series B,
7.00%, 5/1/03, Callable 5/1/99 @
102, BIG......................... 1,058
1,215 Seattle, Light and Power Revenue,
5.00%, 7/1/13, Callable 7/1/07 @
102.............................. 1,224
1,540 Seattle, Light and Power Revenue,
5.00%, 7/1/14, Callable 7/1/07 @
102.............................. 1,543
1,450 Seattle, Light and Power Revenue,
5.00%, 7/1/16, Callable 7/1/07 @
102.............................. 1,439
1,450 Seattle, Light and Power Revenue,
5.00%, 7/1/16, Callable 7/1/07 @
102.............................. 1,439
3,000 Snohomish County, Public Utility
District #001, Electric Revenue,
6.00%, 1/1/13, Callable 1/1/03 @
102, FGIC........................ 3,213
700 State Certificates Partnership,
Series A, 6.80%, 4/1/06, Callable
4/1/01 @ 102..................... 757
3,500 State Nuclear Project #1, Series A,
6.00%, 7/1/08, AMBAC............. 3,910
1,000 State Public Power, Nuclear Project
#1, 5.13%, 7/1/11, Callable
7/1/07 @ 102..................... 1,003
--------
19,947
--------
West Virginia (3.1%):
1,500 Board of Regents Revenue, Series A,
5.90%, 4/1/04, ETM............... 1,598
2,495 Harrison County, Community Split
Obligation, Series A, 6.25%,
5/15/10.......................... 2,881
3,500 School Building Authority, Series
B, 5.40%, 7/1/17, Callable 7/1/07
@ 102, FSA....................... 3,599
</TABLE>
Continued
15
<PAGE> 18
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued
$ 1,150 State College Revenue, 6.00%,
4/1/12, Callable 4/1/03 @ 102,
AMBAC............................ $ 1,242
2,000 State Housing Development Fund,
Housing Finance, AMT, 7.20%,
11/1/20, Callable 5/1/02 @ 102... 2,145
2,175 University Athletics, Series B,
5.00%, 5/1/22, Callable 5/1/08 @
101, AMBAC....................... 2,136
1,800 University Student Union, Series B,
5.00%, 5/1/17, Callable 5/1/08 @
101, AMBAC....................... 1,769
--------
15,370
--------
Wisconsin (0.3%):
500 Mukwonago School District, 5.80%,
3/1/07, Prerefunded 3/1/02 @100,
AMBAC............................ 532
1,000 State, Series A, 6.30%, 5/1/07,
Prerefunded 5/1/02 @ 100......... 1,084
--------
1,616
--------
Wyoming (0.5%):
875 Community Development Authority
Single Family Mortgage, Series A,
7.25%, 6/1/07, Callable 6/1/01 @
102.............................. 917
1,395 Sweetwater County, School District
#2, Green River, GO, 7.00%,
6/1/04, MBIA..................... 1,607
--------
2,524
--------
Total Municipal Bonds 504,958
--------
WEEKLY DEMAND NOTES (1.3%):
Illinois (0.5%):
2,600 State Health Facilities Authority,
4.15%, 7/1/27, LOC: First
National Bank of Chicago*........ 2,600
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Indiana (0.8%):
$ 1,000 Indiana Capital Health Program,
3.75%, 8/1/06*................... $ 1,000
1,000 Indiana Hospital Equipment
Financing Authority Revenue,
Series A, 3.75%, 12/1/15*........ 1,000
1,860 Indiana State Housing Finance
Authority, 4.25%, 1/1/29, LOC:
Federal Home Loan Bank*.......... 1,860
--------
3,860
--------
Total Weekly Demand Notes 6,460
--------
INVESTMENT COMPANIES (0.1%):
656 Provident Muni Cash................ 656
--------
Total Investment Companies 656
--------
Total (Cost $486,031) (a) $512,074
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $488,353.
Continued
16
<PAGE> 19
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Intermediate Tax-Free Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows
(amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $26,077
Unrealized depreciation..................................... (34)
-------
Net unrealized appreciation................................. $26,043
=======
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other cards and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market rates. The rate reflected on the Schedule of Portfolio Investments is
the rate in effect at December 31, 1997.
<TABLE>
<S> <C>
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
BIG Insured by Bond Insurance Guarantee
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FNMA Insured by Federal National Mortgage Association
FSA Insured by Federal Security Assurance
GNMA Insured by Government National Mortgage Association
GO General Obligation
GSL Guaranteed Student Loans
IDR Industrial Development Revenue
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
See notes to financial statements.
17
<PAGE> 20
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
DAILY DEMAND NOTES (2.9%):
North Dakota (0.2%):
$ 1,125 Grand Forks North Dakota, United
Hospital, 5.10%, 12/1/16........... $ 1,125
--------
Pennsylvania (1.9%):
11,490 Allegheny County Pennsylvania
Industrial Development, Logwood at
Oakmont Inc., 5.25%, 7/1/27*....... 11,490
--------
Washington (0.3%):
1,300 Washington State Health Care
Facilities Authority Mason Medical,
5.00%, 2/15/27*.................... 1,300
800 Washington State Housing Finance,
5.10%, 1/1/21, LOC: US Bank of
Washington*........................ 800
--------
2,100
--------
Wisconsin (0.5%):
3,500 State Health Facilities, 3.70%,
1/1/16, LOC: Toronto Dominion
Bank*.............................. 3,500
--------
Total Daily Demand Notes 18,215
--------
MONTHLY DEMAND NOTES (0.1%):
California (0.1%):
600 Windsor, Multi-Family Revenue, 4.35%,
8/1/25, LOC: Banque Paribas*....... 600
--------
Total Monthly Demand Notes 600
--------
MUNICIPAL BONDS (96.9%):
Alabama (0.3%):
565 Alabama Housing Finance Authority,
Series A-1, 5.80%, 10/1/08,
Callable 4/1/05 @ 102, GNMA........ 596
1,000 Mobile Alabama Board of School
Commissioners, 5.00%, 3/1/08,
Callable 3/1/04 @ 102, AMBAC....... 1,032
--------
1,628
--------
Alaska (2.5%):
285 Alaska State Department
Administration, 4.40%, 9/1/98...... 286
755 Anchorage Alaska, Series A, 5.40%,
4/1/07, Callable 4/1/06 @ 100,
MBIA............................... 803
3,570 Energy Authority, Utility Revenue,
5.20%, 7/1/17, Callable 7/1/08 @
100, FSA........................... 3,583
1,185 Home Mortgage Revenue Refunding,
8.00%, 3/1/09, Callable 3/1/02 @
102, FNMA.......................... 1,279
155 Juneau City & Boro Home Mortgage
Revenue, 8.00%, 2/1/09, Callable
2/1/02 @ 100, FNMA................. 167
1,750 North Slope, Series B, 0.00%,
6/30/04............................ 1,306
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Alaska, continued:
$ 8,440 State Housing Finance Corp., 0.00%,
12/1/17, Callable 6/1/07 @ 54,
MBIA............................... $ 2,608
30,000 State Housing Finance Corp., Series
A-2, AMT, 0.00%, 6/1/37, Callable
12/1/07 @ 17.74.................... 3,018
2,750 Student Loan Corp., Series A, AMT,
5.75%, 7/1/14, Callable 7/1/07 @
100, AMBAC......................... 2,906
--------
15,956
--------
Arizona (0.5%):
200 Arizona State Transportation Board,
Series A, 6.10%, 7/1/01, OID @
99.641............................. 214
325 Maricopa County, Industrial
Development, Multi-Family Housing,
7.25%, 7/1/17, Callable 7/1/07 @
101................................ 337
1,500 Maricopa County, Industrial
Development, Multi-Family Housing
Revenue, Series A, 6.25%, 7/1/27,
Callable 1/1/07 @ 101.............. 1,557
250 Phoenix Arizona, Series 1985A, 7.00%,
7/1/03, Callable 01/01/98 @ 101.... 284
1,000 Yuma, Individual & Multi-Family
Apartments, Series A, 5.40%,
12/20/17, Callable 12/20/04 @ 100,
GNMA............................... 1,007
--------
3,399
--------
Arkansas (1.9%):
343 Drew County, Public Facilities Board,
7.90%, 8/1/11, Callable 8/1/03 @
103, FNMA.......................... 372
149 Drew County, Public Facilities Board,
7.75%, 8/1/11, Callable 2/1/04 @
100................................ 160
517 Jacksonville, Residential Housing
Facilities Board, Single Family
Mortgage Revenue, 7.90%, 1/1/11,
Callable 7/1/03 @ 103.............. 567
231 Jacksonville, Residential Housing
Facilities Board, Single Family
Mortgage Revenue, 7.75%, 1/1/11,
Callable 7/1/05 @ 103.............. 252
990 Jefferson County, PCR, Power & Light
Co. Project, 6.13%, 10/1/07,
Callable 4/1/06 @ 100, BIG......... 991
216 Lonoke County, Residential Housing
Facilities Board, Single Family
Mortgage Revenue, 7.38%, 4/1/11,
Callable 4/1/03 @ 103.............. 234
</TABLE>
Continued
18
<PAGE> 21
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arkansas, continued:
$ 626 Lonoke County, Residential Housing
Facilities Board, Single Family
Mortgage Revenue, Series A-2,
7.90%, 4/1/11, FNMA................ $ 687
1,000 Paragould, Hospital Revenue, 6.38%,
10/1/17, Callable 10/1/06 @ 102.... 1,074
1,143 Pope County, Residential Facilities,
Housing Board Mortgage Revenue,
Series B, 7.75%, 9/1/11, Callable
8/1/02 @ 102, FHA.................. 1,231
1,500 State Capital Appreciation, College
Savings, Series 97A, 0.00%,
6/1/16............................. 566
2,000 State Capital Appreciation, College
Savings, Series A, 0.00%, 6/1/15... 802
1,930 State Development Authority Revenue
Refunding, 8.00%, 8/15/11, Callable
8/15/01 @ 103...................... 2,078
3,650 State Development Finance Authority
Revenue, 0.00%, 6/1/15............. 1,414
880 State Development Finance Authority
Revenue, Single Family Housing,
7.75%, 4/1/21, Callable 4/1/99 @
102, GNMA.......................... 912
478 Stuttgart Public Facilities Board
Revenue, Series A-2, 7.90%, 9/1/11,
Callable 9/1/03 @ 103.............. 524
257 Stuttgart Public Facilities Board
Revenue, Series B, 7.75%, 9/1/11,
Callable 3/1/06 @ 103.............. 282
--------
12,146
--------
California (2.5%):
430 ABAG Finance Authority for Nonprofit
Corp., 5.85%, 10/1/27, Callable
10/1/07 @ 102...................... 444
1,255 Fairfield, Water Revenue, 0.00%,
4/1/15, Callable 4/1/05 @ 56.7,
AMBAC.............................. 505
1,690 Fresno Housing Authority, Project B,
AMT, 5.60%, 8/1/30, Callable 8/1/07
@ 102.............................. 1,738
1,080 Housing Finance Agency Revenue, Home
Mortgage, AMT, 7.50%, 2/1/23,
Callable 8/1/05 @ 102, FHA......... 1,191
15 Housing Finance Agency Revenue, Home
Mortgage, Series C, AMT, 7.45%,
8/1/11, Callable 8/1/01 @ 102...... 15
680 Housing Finance Agency Revenue, Local
or Guaranteed Housing, Series B,
8.63%, 8/1/15, Callable 8/1/00 @
100, MBIA.......................... 712
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
California, continued:
$ 570 Housing Finance Agency Revenue,
Series H, AMT, 6.80%, 8/1/19,
Callable 8/1/04 @ 102, FHA......... $ 599
780 Housing Finance Agency Revenue,
Single Family Housing, Series F,
7.88%, 8/1/19, Callable 8/1/98 @
102................................ 803
100 Los Angeles, California Water & Power
Electric, 4.50%, 8/15/98........... 100
1,000 Oakland, Revenue Refunding, Series A,
7.60%, 8/1/21, Callable 8/1/98 @
102, FGIC.......................... 1,041
815 Redondo Beach, Redevelopment Agency,
Residential Mortgage Revenue,
Series B, 6.25%, 6/1/11, Callable
6/1/03 @ 100....................... 836
350 Rural Home Mortgage Financing
Authority Revenue, Single Family
Mortgage Revenue, AMT, 7.25%,
12/1/24, Callable 12/1/04 @ 103,
GNMA............................... 379
810 Rural Home Mortgage Financing
Authority, AMT, 7.55%, 11/1/26..... 944
805 Rural Home Mortgage Financing
Authority, AMT, 7.75%, 5/1/27...... 937
2,230 Rural Home Mortgage, Class 5, AMT,
5.50%, 3/1/29, LOC: GNMA........... 2,467
1,180 San Joaquin Hills Toll Road,
Pre-refunded, 0.00%, 1/1/14........ 533
4,435 San Joaquin Hills Toll Road,
Pre-refunded, 0.00%, 1/1/16........ 1,790
1,105 State Department of Veterans'
Affairs, AMT, 7.38%, 8/1/12,
Callable 2/1/98 @ 101.5............ 1,125
--------
16,159
--------
Colorado (16.2%):
5,250 Arapahoe County, Highway Revenue,
Series C, 0.00%, 8/31/15, Callable
8/31/05 @ 48.6..................... 1,819
4,920 Aurora County, Industrial
Development, Series A, 5.38%,
12/1/11, Callable 12/1/02 @ 102.... 4,920
5,030 Aurora, Single Family Mortgage
Revenue, Series A2, 0.00%, 9/1/15,
Prerefunded 3/1/13 @ 75.2.......... 1,758
2,205 Brush Creek Metropolitan District,
GO, Refunding, 6.70%, 11/15/09,
Callable 11/15/03 @ 101............ 2,402
400 Central City Water Revenue, GO, Water
Utility Improvements, 8.63%,
9/15/11, Prerefunded 9/15/02 @
100................................ 474
</TABLE>
Continued
19
<PAGE> 22
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 655 Central City Water Revenue, GO, Water
Utility Improvements, 7.50%,
12/1/12, Prerefunded 12/1/02 @
100................................ $ 748
2,500 Colorado Health Facilities Authority
Steamboat Springs, 5.75%, 9/15/22,
callable 9/15/08 @ 101............. 2,517
3,700 Colorado Springs Airport Revenue,
AMT, 6.90%, 1/1/12, Callable 1/1/03
@ 102, MBIA........................ 4,095
1,275 Dawson Ridge, Metropolitan District
No.1, ETM, 0.00%, 10/1/12.......... 600
1,000 Denver Housing Corp., Series A,
5.35%, 10/1/12, Callable 10/1/07 @
101................................ 1,017
2,500 Denver, City & County Airport
Revenue, AMT, 5.63%, 11/15/08,
Callable 11/15/06 @ 102, MBIA...... 2,709
875 Denver, City & County Airport
Revenue, AMT, 6.75%, 11/15/13,
Callable 11/15/02 @ 102,
MBIA-IBC........................... 963
20,610 Denver, City & County Mortgage, AMT,
0.00%, 8/1/29...................... 3,194
9,850 Denver, City & County Residual
Revenue, 0.00%, 7/10/14, Callable
7/1/01 @ 39.6...................... 3,125
525 Denver, City & County, Series C,
5.40%, 8/1/01, Callable 8/1/00 @
101................................ 548
5,935 Douglas County Colorado Multi-Family
Revenue, Parker Hilltop Apt
Project, 4.00%, 12/1/27, ATM....... 5,934
1,250 Eagle's Nest Metropolitan District,
GO, Refunding, 6.50%, 11/15/17,
Callable 11/15/97 @ 107............ 1,329
223 El Paso County, Home Mortgage, Series
C, 8.30%, 9/20/18, Callable 12/1/97
@ 100.............................. 249
1,145 El Paso County, Single Family
Mortgage Revenue, 0.00%, 9/1/15,
ETM................................ 461
2,500 Englewood, Multi-Family Housing,
Marks Apartment Revenue, 6.65%,
12/1/26, Callable 12/1/06 @ 102.... 2,668
1,415 Englewood, Multi-Family Housing,
Marks Apartment Revenue, Series B,
6.00%, 12/15/18, Callable 12/15/03
@ 100, LOC: Citibank............... 1,439
1,685 Housing Finance Authority, GO, 6.80%,
8/1/14, Callable 8/1/02 @ 102...... 1,783
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 2,560 Housing Finance Authority,
Multi-Family Mortgage Revenue,
Series B, 6.00%, 10/1/25, Callable
2/11/98 @ 100.5, FHA............... $ 2,204
165 Housing Finance Authority,
Multi-Family Revenue, AMT, 5.75%,
10/1/06, Callable 4/1/06 @ 102..... 175
875 Housing Finance Authority,
Multi-Family Revenue, Series A,
9.00%, 10/1/25, Callable 10/1/00 @
100, FHA........................... 882
255 Housing Finance Authority, Series A,
6.90%, 5/1/01...................... 269
2,500 Housing Finance Authority, Series
B-2, AMT, 7.00%, 5/1/26, Callable
5/1/07 @ 105....................... 2,792
2,500 Housing Finance Authority, Series
C-2, AMT, 6.88%, 11/1/28, Callable
11/1/07 @ 105...................... 2,772
3,550 Housing Finance Authority, Single
Family, 7.45%, 11/1/27, Callable
5/1/06 @ 105....................... 4,079
790 Housing Finance Authority, Single
Family Program, Series B, 6.13%,
5/1/13, Callable 11/1/04 @ 103,
FHA................................ 824
735 Housing Finance Authority, Single
Family Program, Series B, 7.50%,
11/1/24, Callable 11/1/04 @ 105,
FHA................................ 826
210 Housing Finance Authority, Single
Family Program, Series B-2, 6.90%,
8/1/17, Callable 2/1/01 @ 102,
FHA................................ 220
400 Housing Finance Authority, Single
Family Program, Series D-1, 6.60%,
8/1/17, Callable 8/1/01 @ 102,
FHA................................ 411
2,000 Housing Finance Authority, Single
Family Program, Series D-1, 7.38%,
6/1/26, Callable 12/1/05 @ 105..... 2,254
680 Housing Finance Authority, Single
Family Program, Series E, AMT,
6.25%, 12/1/09, Callable 12/1/04 @
103................................ 719
360 Housing Finance Authority, Single
Family Program, Sub Series A, AMT,
6.50%, 12/1/02..................... 376
9,500 Housing Finance Authority, Single
Family Revenue, AMT, 7.25%, 5/1/27,
Callable 5/1/07 @ 105.............. 10,731
910 Housing Finance Authority, Single
Family Revenue, Series 95C, 7.45%,
6/1/17, Callable 6/1/05 @ 105...... 1,037
490 Housing Finance Authority, Single
Family Revenue, Series A, 0.00%,
9/1/14, FHA........................ 91
</TABLE>
Continued
20
<PAGE> 23
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Colorado, continued:
$ 370 Housing Finance Authority, Single
Family Revenue, Series A-3, AMT,
6.50%, 11/1/23, Callable 5/1/02 @
102................................ $ 385
3,500 Housing Finance Authority, Single
Family Revenue, Series C-1, AMT,
7.55%, 11/1/27, Callable 11/1/06 @
102................................ 3,974
1,000 Jefferson County, Single Family
Revenue, Refunding, Series A,
8.88%, 10/1/13, Callable 4/1/01 @
103, MBIA.......................... 1,074
7,525 Meridian Metropolitan District,
7.50%, 12/1/11, Callable 12/1/01 @
101................................ 8,298
1,500 Mesa County, Residual Revenue
Refunding, 0.00%, 12/1/11, ETM..... 753
2,895 Montrose County, Hospital Revenue,
Series B, 5.25%, 12/1/17, Callable
12/1/07 @ 102...................... 2,896
140 Mountain Village Metropolitan
District, 7.95%, 12/1/03,
Prerefunded 12/1/02 @ 101.......... 163
1,720 Mountain Village Metropolitan
District, 8.10%, 12/1/11,
Prerefunded 12/1/02 @ 101.......... 2,024
890 Mountain Village Metropolitan
District San Miguel County, 7.95%,
12/01/03, Callable 12/1/02 @ 101... 999
835 Mountain Village Metropolitan
District, San Miguel County, 8.10%,
12/1/11, Callable 12/1/02 @ 101.... 968
2,630 Mountain Village Metropolitan
District, San Miguel County, 5.15%,
12/1/13, Callable 12/01/07 @ 101... 2,683
3,700 Mountain Village Metropolitan
District, San Miguel County, 5.20%,
12/1/17, Callable 12/1/07 @ 101.... 3,728
--------
103,359
--------
Connecticut (2.3%):
4,350 Stamford, Connecticut Housing
Authority, Rippowam Project, 6.25%,
10/1/19, Callable 10/1/08 @ 103.... 4,605
9,200 Stamford, Connecticut Housing
Authority, Rippowam Project,
6.375%, 10/1/29, Callable 10/1/08 @
103................................ 9,738
175 State Housing Mortgage, Series A,
7.63%, 11/15/17, Callable 2/11/98 @
102................................ 179
--------
14,522
--------
Delaware (0.0%):
765 New Castle County, Single Family
Mortgage Revenue, 0.00%, 11/1/16,
FGIC............................... 122
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
District of Columbia (0.1%):
$ 400 State, 6.80%, 5/1/98................. $ 404
--------
Florida (5.1%):
1,030 Brevard County, Housing Finance
Authority, Single Family Mortgage
Revenue, AMT, 6.13%, 9/1/09,
Callable 9/1/04 @ 102.............. 1,067
4,510 Duval County, Housing Finance
Authority, Single Family Revenue,
Series C, 7.35%, 7/1/24, Callable
9/1/00 @ 103, FGIC Mortgage........ 4,822
565 Escambia County, Housing Finance
Authority, Single Family Revenue,
AMT, 6.60%, 10/1/12, Callable
4/1/05 @ 102, GNMA................. 588
2,000 Hillsborough County Aviation, Series
B, 5.13%, 10/1/17, Callable 10/1/06
@ 101, AMBAC....................... 1,994
470 Housing Finance Agency, Home
Ownership Revenue, 7.50%, 9/1/14,
Callable 9/1/00 @ 102, GNMA........ 497
2,000 Lee County, Housing Finance
Authority, Series A, AMT, 5.60%,
3/1/29, Callable 9/1/07 @ 105,
FNMA............................... 2,217
2,680 Lee County, Housing Finance
Authority, Single Family Revenue,
AMT, 7.20%, 3/1/27, Callable 3/1/07
@ 105.............................. 3,035
745 Leon County, Housing Finance
Authority, Multi-County Program,
Series B, AMT, 7.30%, 1/1/28....... 848
1,755 Manatee County, Housing Finance
Authority, Mortgage Revenue, 8.38%,
5/1/25, Callable 5/1/04 @ 105...... 2,030
2,305 Manatee County, Housing Finance
Authority, Mortgage Revenue, AMT,
7.20%, 5/1/28, Callable 3/1/07 @
105, GNMA.......................... 2,613
790 Orange County, Housing Finance
Authority, Mortgage Revenue, Series
A, AMT, 7.25%, 9/1/19, Callable
3/1/01 @ 103....................... 839
800 Orange County, Housing Finance
Authority, Mortgage Revenue, Series
A, AMT, 7.38%, 9/1/24, Callable
3/1/01 @ 103, FHA.................. 852
535 Palm Beach County, Housing Finance
Authority, Single Family Mortgage
Revenue, Series A, AMT, 6.38%,
10/1/06, Callable 10/1/04 @ 102.... 560
</TABLE>
Continued
21
<PAGE> 24
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Florida, continued:
$ 1,765 Pinellas County, Housing Finance
Authority, Single Family Mortgage
Revenue, Multi-County, Series A,
6.35%, 2/1/17, Callable 2/1/05 @
102................................ $ 1,849
2,500 Pinellas County, Housing Finance
Authority, Single Family Mortgage
Revenue, Series 95-A, AMT, 6.25%,
8/1/12, Callable 2/1/05 @ 102...... 2,651
2,150 Polk County, Housing Finance
Authority, Single Family Mortgage
Revenue, Series A, AMT, 7.88%,
9/1/22, Callable 3/1/00 @ 103...... 2,278
1,320 Santa Rosa Bay Bridge Authority, ACA,
0.00%, 7/1/08...................... 763
1,625 Santa Rosa Bay Bridge Authority, ACA,
0.00%, 7/1/09...................... 871
1,535 Santa Rosa Bay Bridge Authority, ACA,
0.00%, 7/1/12...................... 735
1,035 Santa Rosa Bay Bridge Authority, ACA,
0.00%, 7/1/14...................... 441
1,080 Santa Rosa Bay Bridge Authority, ACA,
0.00%, 7/1/16...................... 409
500 State Finance Department, 6.25%,
7/1/09, Callable 7/1/02 @ 101,
MBIA............................... 542
--------
32,501
--------
Georgia (1.5%):
785 De Kalb County, Housing Authority
Revenue, 6.40%, 5/1/05, Callable
5/1/04 @ 100....................... 823
5,000 De Kalb County, Housing Authority
Revenue, Multi-Family Housing,
7.05%, 1/1/39, Callable 1/1/08 @
104, FHA........................... 5,493
775 De Kalb County, Housing Authority
Revenue, Single Family Housing,
AMT, 7.65%, 6/1/18, Callable 6/1/04
@ 100, GNMA........................ 825
1,765 Fulton County, Housing Authority
Revenue, Multi-Family Housing,
Series A, AMT, 6.30%, 7/1/16,
Callable 7/1/06 @ 102.............. 1,842
500 Georgia Municipal Electric Power
Authority, GO, Series Q, 8.375%,
1/1/16, Callable 1/1/98 @ 102...... 510
--------
9,493
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Idaho (1.1%):
$ 1,500 Housing & Financial Assistance,
Single Family Mortgage, Series D,
AMT, 6.45%, 7/1/14, Callable 1/1/06
@ 102, FHA......................... $ 1,597
2,155 Housing & Financial Assistance,
Single Family Mortgage, Series H,
AMT, 6.05%, 7/1/14, Callable 1/1/07
@ 102, FHA......................... 2,262
275 Housing Agency, Single Family
Mortgage, AMT, 6.30%, 7/1/24,
Callable 1/1/03 @ 102.............. 284
160 Housing Agency, Single Family
Mortgage, Series A-2, AMT, 6.55%,
7/1/24, Callable 1/1/03 @ 102...... 167
1,075 Housing Finance Assignment, Single
Family Mortgage Revenue, Series
97-E2, AMT, 5.95%,
7/1/14, Callable 1/1/07 @ 101.5.... 1,120
1,520 Power County, PCR, 5.63%, 10/1/14.... 1,553
--------
6,983
--------
Illinois (5.5%):
5,890 Addison Alton Electric Public
Improvements Revenue, Sub Series 1,
0.00%, 7/1/11, Callable 7/1/04 @
62................................. 2,644
195 Aurora Kane & DuPage Counties, Single
Family Mortgage Revenue, Series A,
AMT, 7.95%, 10/1/25, GNMA.......... 221
12,410 Aurora, Illinois Fox Valley
Apartments, 5.3%, 11/1/27, Callable
11/1/05 @ 101...................... 12,496
330 Aurora, Single Family Mortgage
Revenue Refunding, Series B, AMT,
8.05%, 9/1/25, Callable 9/1/04 @
105................................ 379
2,780 Bolingbrook Mortgage Revenue, Capital
Appreciation, Sub Series 1, 0.00%,
1/1/11, Callable 1/1/00 @ 48.6..... 1,092
2,000 Chicago Single Family Mortgage
Revenue, AMT, 6.95%, 9/01/28,
Callable 9/01/07 @ 105, AMBAC...... 2,223
1,590 Chicago, Residential Mortgage
Revenue, 0.00%, 10/1/09, Callable
4/1/98 @ 48.84, MBIA............... 718
1,415 Chicago, Single Family Mortgage
Revenue, AMT, 7.63%, 9/1/27,
Callable 6/15/06 @ 105, GNMA....... 1,621
2,000 Chicago, Single Family Mortgage
Revenue, Series 97-A, AMT, 7.25%,
9/1/28, Callable 9/1/07 @ 105,
GNMA............................... 2,264
</TABLE>
Continued
22
<PAGE> 25
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Illinois, continued:
$ 3,355 Chicago, Single Family Mortgage
Revenue, Series A, AMT, 7.00%,
9/1/27, Callable 3/1/06 @ 105...... $ 3,746
715 Danville, Single Family Mortgage
Revenue Refunding, 7.30%, 11/1/10,
Callable 11/1/03 @ 102............. 765
3,530 Freeport Single Family Mortgage
Revenue, 0.00%, 8/1/10, Callable
10/1/01 @ 49....................... 1,298
730 Housing Development Authority,
Residential Mortgage Revenue,
Series A, AMT, 7.35%, 8/1/10,
Callable 8/1/01 @ 102.............. 770
4,685 Moline, Mortgage Revenue, Capital
Appreciation, Sub Series 1, 0.00%,
5/1/11, Callable 5/1/05 @ 65....... 1,843
905 Quincy, Single Family Mortgage
Revenue Refunding, 6.88%, 3/1/10,
Callable 3/1/04 @ 102.............. 966
400 Rock Island, Residential Mortgage
Revenue Refunding, 7.70%, 9/1/08,
Callable 9/1/02 @ 102.............. 430
300 State, 6.38%, 6/1/98................. 303
300 State, 4.40%, 12/1/03, MBIA.......... 303
1,000 State Sales Tax, Series S, 4.80%,
6/15/06, OID @ 99.522.............. 1,031
--------
35,113
--------
Indiana (1.6%):
2,250 Marion County, Hospital Authority
Revenue, 6.50%, 9/1/13, Callable
9/1/99 @ 102....................... 2,520
3,500 State Housing Finance Authority,
Single Family Mortgage Revenue,
Series A-2, AMT, 6.45%, 7/1/14,
Callable 7/1/05 @ 102, FHA......... 3,743
695 State Housing Finance Authority,
Single Family Mortgage Revenue,
Series B-2, AMT, 7.80%, 1/1/22,
Callable 7/1/00 @ 102, GNMA........ 732
3,130 State Toll Finance Authority, Toll
Road Revenue, 6.00%, 7/1/15,
Callable 7/1/97 @ 100.............. 3,135
--------
10,130
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Iowa (1.2%):
$ 650 Davenport, Home Ownership Mortgage
Revenue Refunding, 7.90%, 3/1/10,
Callable 9/1/04 @ 102.............. $ 699
1,010 Finance Authority, Multi-Family
Revenue, AMT, 7.15%, 12/1/09....... 1,102
13,465 Finance Authority, Single Family
Mortgage Revenue, 0.00%, 9/1/16,
AMBAC.............................. 1,720
590 Finance Authority, Single Family
Revenue, AMT, 7.90%, 11/1/22,
Callable 11/1/99 @ 102, GNMA....... 618
2,525 Finance Authority, Single Family
Revenue, Mortgage Backed Securities
Program, Series C, 6.40%, 7/1/19,
Callable 1/1/05 @ 102, GNMA........ 2,683
885 Salix, PCR, Gas & Electric Project,
5.75%, 6/1/03, Callable 1/1/98 @
100................................ 890
--------
7,712
--------
Kansas (2.7%):
390 Finney County, Single Family Mortgage
Revenue, 8.95%, 10/1/09, Callable
4/1/98 @ 100....................... 391
755 Ford County, Single Family Mortgage
Revenue, 7.90%, 8/1/10, Callable
8/1/02 @ 103, FHA.................. 817
1,865 Johnson County, Single Family
Mortgage Revenue, 7.10%, 5/1/12,
Callable 5/1/04 @ 103.............. 2,039
500 Labette County, Single Family
Mortgage Revenue, Series A, 8.40%,
12/1/11, Callable 6/1/03 @ 103..... 537
340 Olathe & Labette County, Single
Family Mortgage Revenue, Series
A-I, AMT, 8.10%, 8/1/23, Callable
2/1/05 @ 105....................... 383
2,505 Olathe County, Multi-Family Housing
Project, Series A, 5.75%, 7/1/12,
Callable 7/1/07 @ 101.............. 2,552
1,005 Olathe County, Multi-Family Housing,
Project B, AMT, 5.80%, 7/1/12,
Callable 7/1/07 @ 101.............. 1,024
2,400 Reno & Labette County, Single Family
Mortgage Revenue, Series A, 0.00%,
12/1/15, ETM, FGIC................. 954
495 Reno County, Single Family Mortgage
Revenue, Series B, 8.70%, 9/1/11,
Callable 9/1/01 @ 103.............. 544
2,500 Sedgwick & Shawnee County, Series
A-1, AMT, 5.50%, 6/1/29, GNMA...... 2,745
</TABLE>
Continued
23
<PAGE> 26
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kansas, continued:
$ 445 Sedgwick & Shawnee County, Single
Family Revenue, Series B, 8.05%,
5/1/14, GNMA....................... $ 499
465 Sedgwick & Shawnee County, Single
Family Revenue, Series B-2, 7.80%,
5/1/14, Callable 11/1/04 @ 103..... 513
470 Sedgwick & Shawnee County, Single
Family Revenue, Series C-2, 7.80%,
11/1/24, Callable 11/1/04 @ 105,
GNMA............................... 526
2,070 Sedgwick County, Mortgage Loan
Revenue, Series B, AMT, 7.80%,
6/1/22, Callable 6/1/00 @ 103,
AMBAC, GNMA........................ 2,196
2,120 Shawnee County, Single Family
Mortgage Revenue, 0.00%, 10/1/16,
Callable 10/1/01 @ 23, MBIA........ 317
975 Wichita, Single Family Mortgage
Revenue, Series A, 7.10%, 9/1/09,
Callable 3/1/03 @ 103.............. 1,035
--------
17,072
--------
Kentucky (0.3%):
510 Housing Corp. Revenue, Series D, AMT,
6.13%, 7/1/22, Callable 7/1/98 @
100................................ 527
1,605 Meade County, PCR, Olin Corp.
Project, 6.00%, 7/1/07, Callable
2/11/98 @ 100...................... 1,616
--------
2,143
--------
Louisiana (1.7%):
900 Calcasieu Parish, Single Family
Mortgage Revenue, Series 92B,
0.00%, 5/1/13, Callable 11/1/02 @
49................................. 322
1,390 Greater Baton Rouge Parking Authority
Sales & Use Tax, 6.375%, 7/1/03,
Callable 2/11/98 @ 100............. 1,393
2,250 Housing Finance Agency, Series B-2,
AMT, 6.75%, 12/1/28, Callable
6/1/07 @ 102, GNMA................. 2,465
850 Iberia Home Mortgage Authority,
Single Family Mortgage Revenue
Refunding, 7.38%, 1/1/11, Callable
1/1/01 @ 100....................... 924
2,475 Jefferson Parish Home Mortgage
Authority Single Family, 0.00%,
5/1/17............................. 898
700 Louisiana State, Series A, 8.00%,
5/1/98, AMBAC...................... 710
5,000 New Orleans, 0.00%, 9/1/14, AMBAC.... 2,181
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 80 Public Facilities Authority Revenue,
Single Family Mortgage, 7.50%,
10/1/15, Callable 4/15/98 @ 100.... $ 87
1,360 Public Facilities Authority Revenue,
Single Family Mortgage, Series C,
8.45%, 12/1/12, Callable 10/1/01 @
101, FHA........................... 1,454
166 St. Mary Public Finance Authority,
Single Family Revenue, Series A,
7.63%, 3/25/12, Callable 10/25/98 @
100................................ 185
--------
10,619
--------
Maine (0.4%):
1,750 State Housing Authority, AMT, 6.10%,
11/15/16, Callable 11/15/06 @
102................................ 1,836
810 State Housing Authority, Housing
Finance Revenue, Series I, AMT,
0.00%, 11/1/10, Callable 11/1/06 @
80.2............................... 420
535 State Housing Authority, Housing
Finance Revenue, Series I, AMT,
0.00%, 11/1/11, Callable 11/1/06 @
75.3............................... 259
215 State Housing Authority, Series D-5,
AMT, 6.90%, 11/15/01, Callable
5/15/01 @ 102...................... 225
--------
2,740
--------
Maryland (0.2%):
1,240 Maryland Community Development,
Multi-Family Housing Revenue,
Series E, AMT, 6.85%, 5/15/25,
Callable 5/15/04 @ 102, GNMA....... 1,338
--------
Massachusetts (1.3%):
2,500 Boston Industrial Development, North
End Community, Series A, 6.45%,
2/1/24, Callable 8/1/07 @ 105,
FHA................................ 2,739
170 State Housing Finance Agency, Single
Family Housing Revenue, AMT, 7.00%,
12/1/23, Callable 6/1/01 @ 102..... 174
1,020 State Housing Finance Agency, Single
Family Housing Revenue, AMT, 7.13%,
6/1/25, Callable 6/1/02 @ 102...... 1,096
2,000 State Industrial Pollution Control,
5.88%, 8/1/08, Callable 8/1/03 @
102................................ 2,060
2,440 State Port Authority Revenue, 7.13%,
7/1/12, Callable 2/11/98 @ 100.5... 2,458
--------
8,527
--------
</TABLE>
Continued
24
<PAGE> 27
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan (1.9%):
$ 200 Auburn Hills Michigan Building
Authority, 5.50%, 11/1/04.......... $ 213
6,500 Detroit Development, Series A, 5.38%,
5/1/18, Callable 5/1/07 @ 101.5.... 6,562
1,000 Michigan State Building, Series I,
5.10%, 10/1/07, Callable 10/01/03 @
102, AMBAC......................... 1,043
1,640 State Housing Development Authority,
Home Improvement, Series B, AMT,
7.65%, 12/1/12, Callable 12/1/99 @
102, FHA........................... 1,713
1,395 State Housing Development Authority,
Single Family Mortgage Revenue,
7.50%, 6/1/15, Callable 1/1/99 @
100.75............................. 1,464
880 State Housing Development Authority,
Single Family Mortgage Revenue,
Series A, 7.70%, 12/1/16, Callable
6/1/99 @ 102....................... 903
--------
11,898
--------
Minnesota (0.3%):
2,950 Minneapolis Mortgage Revenue, 0.00%,
10/1/12, Callable 10/1/05 @ 100.... 1,167
800 Minnesota State, 4.70%, 8/1/98....... 805
--------
1,972
--------
Mississippi (1.8%):
1,000 Higher Education Assistance Corp.,
Student Loan Revenue, AMT, 6.60%,
1/1/05, Callable 7/1/02 @ 102...... 1,073
1,440 Higher Education Assistance Corp.,
Student Loan Revenue, Series 92C,
AMT, 6.50%, 7/1/04, Callable 7/1/02
@ 102.............................. 1,545
825 Higher Education Assistance Corp.,
Student Loan Revenue, Series C,
AMT, 6.05%, 9/1/07, Callable 9/1/02
@ 102.............................. 873
1,275 Home Corp., Single Family Revenue,
7.10%, 12/1/10, Callable 3/1/98 @
100................................ 1,350
2,000 Home Corp., Single Family Revenue,
Series B, AMT, 7.90%, 3/1/25,
Callable 3/1/05 @ 106, GNMA........ 2,244
2,000 Home Corp., Single Family Revenue,
Series F, AMT, 7.55%, 12/1/27,
Callable 12/1/06 @ 105, GNMA,
FNMA............................... 2,280
1,340 Housing Finance Corp., Single Family
Mortgage Revenue, AMT, 8.25%,
10/15/18, Callable 10/15/99 @ 102,
FGIC............................... 1,419
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Mississippi, continued:
$ 375 Mississippi State, 6.60%, 10/1/98.... $ 383
305 Mississippi State, 6.60%, 10/1/99,
OID @ 99.638....................... 319
--------
11,486
--------
Missouri (1.6%):
645 Grandview Industrial Development
Authority, Multi-Family Housing
Revenue, 9.25%, 5/15/08, Callable
5/15/04 @ 103...................... 645
1,000 Jefferson City, Missouri School
District, Series A, 6.70%,
3/1/11............................. 1,198
1,500 St. Louis County Industrial
Development Authority,
Multi-Family, 5.35%, 7/1/18,
Callable 1/1/08 @ 100, FNMA........ 1,508
1,410 State Housing Development, Common
Mortgage Revenue, Single Family,
AMT, 7.38%, 8/1/23, Callable 2/1/01
@ 102, GNMA........................ 1,496
910 State Housing Development, Common
Mortgage Revenue, Single Family,
AMT, 7.25%, 9/1/26, Callable 3/1/06
@ 105, GNMA........................ 1,026
1,970 State Housing Development, Common
Mortgage Revenue, Single Family,
Series A, AMT, 7.20%, 9/1/26,
Callable 9/1/06 @ 105, GNMA........ 2,226
1,945 State Housing Development, Common
Mortgage Revenue, Single Family,
Series D, AMT, 7.10%, 9/1/27,
Callable 1/1/07 @ 102, GNMA........ 2,144
--------
10,243
--------
Montana (0.7%):
1,545 Greenwood Plaza Housing, Inc.,
10.43%, 1/1/22, Callable 1/1/98 @
102.5, FHA......................... 1,601
3,000 Lewis & Clark County Metropolitan
Environment, Asarco Inc. Project,
5.6%, 1/1/27, Callable 1/1/08 @
102................................ 3,060
--------
4,661
--------
Nebraska (0.1%):
1,890 Finance Authority, Single Family
Mortgage Revenue, 0.00%, 12/15/13,
FHA................................ 392
225 Finance Authority, Single Family
Mortgage Revenue, AMT, 6.35%,
3/15/06, Callable 9/15/02 @ 102.... 235
--------
627
--------
</TABLE>
Continued
25
<PAGE> 28
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Nevada (2.7%):
$ 1,825 Housing Division, Issue C, AMT,
6.35%, 10/1/13, Callable 4/1/05 @
102, FHA........................... $ 1,943
1,495 Housing Division, Single Family
Mortgage, Series C, AMT, 6.60%,
4/1/14, Callable 4/1/06 @ 102...... 1,592
430 Housing Division, Single Family
Program, Series B-1, 6.20%,
10/1/15, Callable 4/1/04 @ 102..... 451
1,205 Housing Division, Single Family
Program, Series B-2, AMT, 7.90%,
10/1/21, Callable 4/1/00 @ 102..... 1,265
890 Housing Finance Authority, Single
Family Mortgage Revenue, Series Sub
B-1, AMT, 6.00%, 4/1/10, Callable
4/1/07 @ 102....................... 935
10,000 Washoe County, Water Facilities
Revenue, Sierra Pacific Power, AMT,
6.65%, 6/1/17, Callable 12/1/02 @
102, MBIA.......................... 11,012
--------
17,198
--------
New Hampshire (1.1%):
7,000 Higher Educational & Health
Facilities, 6.13%, 10/1/13,
Callable 10/1/03 @ 102............. 7,277
--------
New Jersey (0.4%):
800 Jersey City, 5.50%, 3/15/10, Callable
3/15/07 @ 102, MBIA................ 856
935 State Housing & Mortgage Finance
Agency Revenue, 7.38%, 10/1/17,
Callable 10/1/99 @ 102, MBIA....... 987
710 State Housing & Mortgage Finance
Agency, Home Mortgage Revenue,
8.38%, 4/1/17, Callable 4/1/98 @
103, MBIA.......................... 735
--------
2,578
--------
New Mexico (1.6%):
165 Bernalillo County, Multi-Family
Housing Revenue, Sub Series A2,
7.00%, 11/1/08, Callable 11/1/03 @
103................................ 169
1,000 Educational Assistance Foundation,
Student Loan Program, AMT, 6.20%,
11/1/08, Callable 11/01/06 @ 102... 1,101
600 Educational Assistance Foundation,
Student Loan Program, AMT, 6.30%,
11/1/09, Callable 11/1/06 @ 102.... 661
595 Hobbs, Single Family Mortgage Revenue
Refunding, 8.75%, 7/1/11, Callable
11/1/98 @ 100...................... 668
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Mexico, continued:
$ 1,140 Las Cruces, Housing Development
Corp., Multi-family Revenue Refund
Mortgage, Series A, 6.40%, 10/1/19,
Callable 4/1/02 @ 102.............. $ 1,179
170 Las Cruces, Housing Development
Corp., Multi-family Revenue Refund
Mortgage, Sub-Series B, 9.00%,
10/1/03............................ 176
385 Mortgage Finance Authority, Single
Family Mortgage Refunding, Series
A-2, 6.85%, 7/1/12, Callable 7/1/02
@ 102.............................. 410
1,645 Mortgage Finance Authority, Single
Family Mortgage Refunding, Series
A-2, 6.90%, 7/1/24, Callable 7/1/02
@ 02............................... 1,743
840 Mortgage Finance Authority, Single
Family Mortgage Revenue, Series 95,
AMT, 6.45%, 7/1/25, Callable 1/1/06
@ 102, GNMA........................ 875
1,000 Mortgage Finance Authority, Single
Family Mortgage, AMT, 6.05%,
7/1/16, Callable 7/1/07 @ 102,
GNMA............................... 1,052
260 Mortgage Finance Authority, Single
Family Mortgage, Series A, AMT,
7.80%, 3/1/21, Callable 9/1/99 @
102, FHA........................... 271
2,000 New Mexico Finance Authority Project
Revolving Fund, 5.00%, 6/1/17,
Callable 6/1/07 @ 100, AMBAC....... 1,989
--------
10,294
--------
New York (1.0%):
2,400 New York City, Industrial Development
Agency Revenue, Japan Airlines,
AMT, 6.00%, 11/1/15, Callable
11/1/04 @ 102, FHA................. 2,585
1,000 New York State Dorm Authority St.
Vincent Depaul Resource, 5.30%,
7/1/18, Callable 7/1/08 @ 102...... 995
3,000 New York, Series A, 5.25%, 8/1/10,
Callable 8/1/07 @ 101.............. 3,036
--------
6,616
--------
</TABLE>
Continued
26
<PAGE> 29
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
North Carolina (0.2%):
$ 700 Municipal Power Agency, No. 1,
Catawba Electric Revenue, Series B,
6.00%, 1/1/20...................... $ 700
475 Municipal Power Agency, Series B,
6.00%, 1/1/20, Callable 2/11/98 @
100, MBIA.......................... 476
--------
1,176
--------
North Dakota (0.8%):
1,280 North Dakota State Municipal
Financing Project Series H, 5.125%,
6/1/17, Callable 6/1/07 @ 100,
FSA................................ 1,282
1,570 State Housing Finance Agency, Housing
Finance Program, Series A, AMT,
6.00%, 7/1/17, Callable 1/1/07 @
102................................ 1,643
485 State Housing Finance Agency, Single
Family Mortgage Revenue, Series
95A, AMT, 7.40%, 7/1/15, Callable
1/1/05 @ 102....................... 520
1,095 State Housing Finance Agency, Single
Family Mortgage Revenue, Series A,
AMT, 8.38%, 7/1/21, Callable 7/1/99
@ 103, FHA......................... 1,149
300 Student Loan, Series D, AMT, 6.15%,
7/1/09, Callable 7/1/06 @ 100,
AMBAC.............................. 326
--------
4,920
--------
Ohio (5.0%):
1,000 Akron, Bath, Copley, Hospital
Revenue, 7.00%, 1/1/12, ETM........ 1,187
4,500 Akron, Municipal Baseball Stadium,
0.00%, 12/1/16, Callable 12/1/06 @
102................................ 3,876
250 Capital Corp., Multi-Family Housing
Revenue, 7.45%, 11/01/03, Callable
2/11/98 @ 105, FNMA................ 263
2,000 Cleveland, Waterworks Revenue, Series
E, 6.00%, 1/1/17, Callable 2/11/98
@ 100.............................. 2,001
1,000 Dayton, Special Facilities Revenue,
Emery Air Freight Corp., 6.05%,
10/1/09............................ 1,079
650 East Liverpool, Hospital Authority,
Series 91B, 8.13%, 10/1/11,
Callable 10/1/01 @ 102............. 718
1,600 Forest Hills, Local School District,
GO, 6.25%, 12/1/20, Callable
12/1/06 @ 102, MBIA................ 1,798
1,900 Hamilton County, Multi-Family Housing
Revenue, AMT, 7.75%, 10/1/21,
Callable 10/1/06 @ 102............. 1,950
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,000 Hilliard School District, 0.00%,
12/1/10............................ $ 543
555 Hilliard School District, 0.00%,
12/1/13............................ 253
1,330 Housing Financial Agency, Single
Family Mortgage Revenue, Series A,
7.65%, 3/1/29, Callable 9/1/99 @
102, GNMA.......................... 1,395
1,540 Housing Financial Agency, Single
Family Mortgage Revenue, Series D,
7.00%, 9/1/11, GNMA................ 1,640
970 Housing Financial Agency, Single
Family Mortgage Revenue, Series D,
7.05%, 9/1/16, Callable 9/1/01 @
102, GNMA.......................... 1,030
5,250 Mahoning District Water Revenue,
7.75%, 5/15/14, Callable 5/15/04 @
102................................ 5,892
1,000 Montgomery County, Hospital Revenue,
5.60%, 12/1/11, Callable 12/1/07 @
102................................ 1,028
350 Ohio Housing Finance Agency Series
A-1, 5.85%, 3/1/06, Callable 3/1/05
@ 102, GNMA........................ 369
590 Piqua City School District, 0.00%,
12/1/06............................ 396
590 Piqua City School District, 0.00%,
12/1/07, FGIC...................... 377
590 Piqua City School District, 0.00%,
12/1/08, FGIC...................... 356
590 Piqua City School District, 0.00%,
12/1/09............................ 334
2,500 State Educational Loan Revenue,
Series A-1, AMT, 5.55%, 12/1/11,
Callable 6/1/07 @ 102, AMBAC....... 2,635
1,000 Student Loan Funding Corp., Sub
Series A, AMT, 6.10%, 8/1/07,
Callable 8/1/03 @ 100.............. 1,052
650 Washington County, Health Care
Facilities, 6.35%, 10/1/27,
Callable 10/1/03 @ 102............. 662
1,200 Westlake, City School District,
5.90%, 12/1/16, Callable 12/1/06 @
102................................ 1,289
--------
32,123
--------
Oklahoma (3.6%):
700 Grand River Dam Authority, 5.0%,
6/1/99, OID @ 99.462............... 710
500 Grand River Dam Authority, 5.5%,
6/1/03, OID @ 98.835............... 530
800 Grand River Dam Authority, 5.75%,
6/1/06, OID @ 98.623............... 875
500 Grand River Dam Authority Revenue,
4.90%, 6/1/98...................... 502
</TABLE>
Continued
27
<PAGE> 30
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Oklahoma, continued:
$ 2,730 Housing Finance Agency, Single Family
Revenue, AMT, 7.05%, 9/1/26,
Callable 9/1/06 @ 105.............. $ 3,051
3,000 Housing Finance Agency, Single Family
Revenue, Series B-2, AMT, 7.63%,
9/1/26, Callable 3/1/06 @ 105...... 3,351
140 Oklahoma Colleges Board of Regents,
4.30%, 10/1/01, MBIA............... 142
145 Oklahoma Colleges Board of Regents,
4.40%, 10/1/02, Callable 10/1/01 @
102, MBIA.......................... 147
285 Oklahoma Development Finance
Authority, 4.50%, 6/1/03, AMBAC.... 289
465 Oklahoma Development Finance
Authority, 5.20%, 7/1/06, AMBAC.... 492
490 Oklahoma Development Finance
Authority, 5.30%, 7/1/07, Callable
7/1/06 @ 102, AMBAC................ 523
1,000 Oklahoma Development Finance
Authority, 5.45%, 7/1/10, Callable
7/1/05 @ 101, FSA.................. 1,060
300 Oklahoma State Municipal Power,
Series B, 5.40%, 1/1/02, MBIA...... 314
1,010 Oklahoma State Power Series B, 5.20%,
1/1/00, MBIA....................... 1,035
400 Oklahoma State Power Series B, 5.30%,
1/1/01, MBIA....................... 415
700 Oklahoma State Power Supply System
Series A, 3.85%, 1/1/98, FGIC...... 700
100 Oklahoma State Power Supply System
Series A, 5.70%, 1/1/01, FGIC...... 105
200 Oklahoma State Power Supply System
Series A, 5.80%, 1/1/02, FGIC...... 213
200 Oklahoma State Power Supply System
Series A, 5.90%, 1/1/03, Callable
1/1/02 @ 102, FGIC................. 216
200 Oklahoma State Power Supply System
Series A, 6.00%, 1/1/04, Callable
1/1/02 @ 102, FGIC................. 217
400 Oklahoma State Power Supply System
Series B, 3.75%, 1/1/98, FGIC...... 400
200 Oklahoma State Student Loan Series B,
5.55%, 9/1/98, GSL................. 202
5 Oklahoma State Turnpike Authority,
7.35%, 1/1/99...................... 5
365 Oklahoma State Turnpike Authority,
7.35%, 1/1/99...................... 378
15 Oklahoma State Turnpike Authority,
7.40%, 1/1/00, Callable 1/1/99 @
102................................ 16
485 Oklahoma State Turnpike Authority,
7.75%, 1/1/09, Callable 1/1/99 @
102................................ 514
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Oklahoma, continued:
$ 335 Oklahoma State Turnpike Authority
Series F, 5.30%, 1/1/03, Callable
7/1/02 @ 102, FGIC................. $ 352
485 Oklahoma State Turnpike Authority,
Series 1, 7.40%, 1/1/00, Callable
1/1/99 @ 102....................... 512
10 Oklahoma State Turnpike Authority,
Series 1, 7.50%, 1/1/02, Callable
1/1/99 @ 102....................... 11
190 Oklahoma State Turnpike Authority,
Series 1, 7.50%, 1/1/02, Callable
1/1/99 @ 102....................... 201
15 Oklahoma State Turnpike Authority,
Series 1, 7.75%, 1/1/09, Callable
1/1/99 @ 102....................... 16
165 Oklahoma State Turnpike Authority,
Series G, 5.30%, 1/1/03, Callable
7/1/02 @ 102, FGIC................. 173
500 Oklahoma State Turnpike, Series A,
6.10%, 1/1/05, Callable 7/1/02 @
102................................ 542
220 Oklahoma State Water, 5.80%,
9/1/01............................. 232
180 Oklahoma State Water, 5.90%,
9/1/02............................. 193
245 Oklahoma State Water, 6.00%,
9/1/03............................. 266
230 Oklahoma State Water, 6.10%,
9/1/04............................. 253
255 Oklahoma State Water Resolution
Board, 5.70%, 10/1/02.............. 273
400 Oklahoma State Water Resolution
Board, 6.15%, 10/1/07, Callable
10/1/02 @ 102...................... 437
110 Oklahoma State Water, Series A,
6.15%, 9/1/01, AMBAC............... 118
65 Oklahoma State Water, Series B,
6.00%, 9/1/01...................... 69
60 Oklahoma State Water, Series B,
6.10%, 9/1/02...................... 65
50 Oklahoma State Water, Series B,
6.20%, 9/1/03...................... 55
310 Oklahoma State, Series A, 4.25%,
7/15/00............................ 313
200 Tulsa Airports, 6.40%, 6/1/06,
Callable 6/1/98 @ 100, FGIC........ 219
500 Tulsa Healthcare, 6.75%, 12/15/18,
Callable 6/15/01, @ 102............ 550
1,000 Tulsa Independent School, 4.375%,
6/1/98, AMBAC...................... 1,003
500 Tulsa Metropolitan Water, Series A,
5.50%, 11/1/03..................... 532
280 Tulsa School Project, 6.00%, 12/1/04,
FSA................................ 306
--------
23,093
--------
</TABLE>
Continued
28
<PAGE> 31
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Oregon (0.9%):
$ 1,000 Albany Hospital Facilities, 5.90%,
10/1/20, Callable 10/1/00 @ 100.... $ 1,005
720 Eugene, Trojan Nuclear Project
Revenue, 5.90%, 9/1/09, Callable
7/10/97 @ 100...................... 721
1,545 Portland, Housing Authority,
Multi-Family Housing Revenue, AMT,
6.13%, 5/1/17, Callable 5/1/00 @
100................................ 1,619
1,240 Portland, Housing Authority, Series
A, 5.60%, 1/1/18, Callable 1/1/08 @
100................................ 1,259
1,055 State Housing & Community Services,
Single Family Mortgage Revenue,
Series 92G, AMT, 6.80%, 7/1/27,
Callable 11/18/02 @ 102............ 1,119
--------
5,723
--------
Pennsylvania (2.3%):
1,000 Clarion County, Hospital Authority
Revenue, 8.10%, 7/1/12, Callable
7/1/99 @ 102....................... 1,078
2,000 Greene County, Industrial Development
Authority, Pollution Control
Revenue, 6.10%, 2/1/07, Callable
7/10/97 @ 100...................... 2,002
1,280 Housing Finance Agency, Single Family
Mortgage, AMT, 6.75%, 10/1/08,
Callable 10/1/05 @ 102............. 1,502
4,250 Northumberland County, Commonwealth
Lease Revenue, 0.00%, 10/15/12..... 2,028
1,600 Philadelphia Hospital & Highered
Facilities Authority, Series A,
5.30%, 1/1/18, Callable 1/1/08 @
102, FHA........................... 1,610
2,550 Philadelphia, Gas Works Revenue,
Series A, 6.38%, 7/1/14, Callable
7/1/03 @ 102....................... 2,752
1,380 Pittsburgh, Urban Redevelopment
Authority, Mortgage Revenue, Series
A, AMT, 8.35%, 10/1/14, Callable
10/1/97 @ 103...................... 1,429
705 Pittsburgh, Urban Redevelopment
Authority, Mortgage Revenue, Sidney
Square, Project A, AMT, 6.10%,
9/1/10, Callable 9/1/06 @ 102...... 754
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Pennsylvania, continued:
$ 590 Pittsburgh, Urban Redevelopment
Authority, Single Family Mortgage
Revenue, Series C, AMT, 7.88%,
12/1/16, Callable 12/1/98 @ 102,
GNMA............................... $ 612
170 Scranton-Lackawanna, Hospital
Facilities Revenue, 7.25%, 7/1/99,
Callable 7/1/98 @ 102, BIG......... 176
1,515 Shaler Area School District, Series
B, 0.00%, 11/15/11................. 770
--------
14,713
--------
Puerto Rico (0.3%):
700 Puerto Rico Commonwealth, 6.00%,
7/1/07, MBIA....................... 788
1,000 Puerto Rico Public Education &
Health, Series L, 6.875%, 7/1/21,
Callable 7/1/02 @ 101.5,
Commonwealth, GTD.................. 1,126
--------
1,914
--------
Rhode Island (0.8%):
2,630 Housing & Mortgage Financial Corp.,
Home Ownership Opportunity, AMT,
6.15%, 4/1/17, Callable 10/1/06 @
102................................ 2,759
500 Housing & Mortgage Financial Corp.,
Home Ownership Opportunity, Series
15-B, 6.00%, 10/1/04, Callable
4/1/04 @ 102, MBIA................. 529
1,000 Housing & Mortgage Financial Corp.,
Home Ownership Opportunity, Series
3A, 7.85%, 10/1/16, Callable
10/1/00 @ 102...................... 1,058
615 Housing & Mortgage Financial Corp.,
Homeownership Opportunity, Series
C-1, AMT, 6.80%, 10/1/23, Callable
10/1/01 @ 102...................... 636
--------
4,982
--------
</TABLE>
Continued
29
<PAGE> 32
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
South Carolina (2.4%):
$ 1,900 Beaufort County, Hospital Revenue,
Beaufort Memorial Hospital, 5.00%,
12/1/17, Callable 12/1/07 @ 102,
AMBAC.............................. $ 1,863
3,000 Piedmont, Municipal Power Agency,
Electric Revenue Refunding, Series
A, 6.60%, 1/1/21, Callable 1/1/98 @
100................................ 3,004
6,975 Piedmont, Municipal Power Agency,
Electric Revenue, Series A, 6.55%,
1/1/16, Callable 1/1/98 @ 100...... 6,982
1,000 Resource Authority, Local Government
Program Revenue, Series A, 7.25%,
6/1/20, Callable 6/1/00 @ 102...... 1,074
2,500 State Housing Authority, Single
Family Mortgage, Series B, 7.00%,
7/1/11, Callable 7/1/02 @ 100, FHA,
VA................................. 2,564
--------
15,487
--------
South Dakota (0.3%):
400 Housing Development Authority, Home-
owner Mortgage, Series D-1, AMT,
6.80%, 5/1/12, Callable 5/1/03 @
102................................ 430
1,435 Student Loan Assistance Corp.,
Student Loan Revenue, Series B,
AMT, 7.63%, 8/1/06, Callable 8/1/99
@ 102, MBIA........................ 1,509
--------
1,939
--------
Tennessee (1.4%):
910 Bristol, Multi-Family Home Revenue,
Shelby Heights Project, Series 97,
6.10%, 3/1/12, Callable 3/1/07 @
101................................ 939
2,000 Housing Development Agency, Home-
ownership Program, AMT, 7.38%,
7/1/23, Callable 7/1/01 @ 102...... 2,121
825 Housing Development Agency, Home-
ownership Program, Series P, 7.70%,
7/1/16, Callable 7/1/00 @ 103...... 868
1,305 Housing Development Agency, Home-
ownership Program, Series V, AMT,
7.65%, 7/1/22, Callable 7/1/01 @
102................................ 1,386
665 La Follette, Housing Development
Corp., Mortgage Revenue Refunding,
Series A, 6.25%, 1/1/16, Callable
7/1/05 @ 102, MBIA, FHA............ 704
380 La Follette, Housing Development
Corp., Mortgage Revenue Refunding,
Series A, 6.37%, 1/1/20, Callable
7/1/05 @ 102, MBIA, FHA............ 403
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee, continued:
$ 1,279 Memphis, Health, Educational &
Housing Revenue Refunding, 7.37%,
1/20/27, Callable 1/20/02 @ 103,
GNMA, FHA.......................... $ 1,378
200 Shelby Tennessee Education & Housing,
Series A, 7.40%, 6/1/03, Callable
6/1/98 @ 102, MBIA................. 207
741 Tennessee State, 5.50%, 3/1/98....... 743
--------
8,749
--------
Texas (10.9%):
1,470 Beaumont, Housing Finance Corp.
Single Family Mortgage Revenue
Refunding, 9.20%, 3/1/12, Callable
9/1/01 @ 103....................... 1,663
1,765 Bexar County, Housing Finance Corp.,
Residual Revenue, GO, 0.00%,
3/1/15, Callable 1/1/99 @ 35.2..... 607
160 Cameron County, Housing Finance
Corp., Single Family Housing
Revenue Refunding, 6.20%, 3/1/13,
Callable 9/1/02 @ 103, GNMA,
FNMA............................... 167
2,500 Central Housing Finance Corp., Single
Family Mortgage Revenue, Series A,
0.00%, 9/1/16, ETM................. 948
250 Central Texas Higher Education, Se-
ries C, 4.35%, 12/1/98, Guaranteed
Student Loans...................... 251
250 Central Texas Higher Education, Se-
ries C, 4.65%, 12/1/00, Guaranteed
Student Loans...................... 253
50 Central Texas Higher Education, Se-
ries C, 4.75%, 12/1/01, Guaranteed
Student Loans...................... 51
100 Clear Creek, Independent School
District, 7.5%, 2/15/06, PSFG...... 121
4,000 Dallas-Fort Worth, Regulation Airport
Revenue, 6.10%, 11/1/07, Callable
7/1/98 @ 100....................... 4,007
3,680 Dallas County, Housing Finance Corp.,
Single Family Mortgage Revenue,
0.00%, 1/1/17, FGIC................ 599
1,000 Dallas County, Improvement & Re-
funding, Series A, 6.50%, 8/15/09,
Callable 8/15/01 @ 100............. 1,080
300 Dallas, Series B, 6.25%, 2/15/06,
Callable 2/15/03 @ 100............. 326
600 El Paso, Housing Finance Corp.,
Single Family Mortgage Revenue
Refunding, Series A, AMT, 8.75%,
10/1/11, Callable 10/1/00 @ 100,
FHA................................ 677
</TABLE>
Continued
30
<PAGE> 33
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
$ 265 El Paso, Housing Finance Corp.,
Single Family Mortgage Revenue,
AMT, 7.75%, 9/1/19, Callable 9/1/98
@ 103.............................. $ 275
450 El Paso, Housing Finance Corp.,
Single Family Mortgage Revenue,
AMT, 8.20%, 3/1/21, Callable 3/1/99
@ 103.............................. 470
300 Fort Bend, Independent School
District, 6.5%, 2/15/02, Callable
2/15/01 @ 100, PSFG................ 321
3,385 Fort Worth, Housing Finance Corp.,
Home Mortgage Revenue Refunding,
Series A, 8.50%, 10/1/11, Callable
10/1/00 @ 100...................... 3,692
1,385 Galveston, Property Finance
Authority, Single Family Mortgage
Revenue Refunding, Series A, 8.50%,
9/1/11, Callable 9/1/01 @ 103...... 1,507
1,000 Houston, Hotel Occupancy Tax Revenue,
Series A, 7.00%, 7/1/15, Callable
7/1/01 @ 100, FGIC................. 1,094
2,365 Houston, Housing Financial Corp.,
Single Family Mortgage Revenue
Refunding, Series B-2, 0.00%,
6/1/14, Callable 12/1/06 @ 58...... 708
700 Houston, Series D, 5.25%, 3/1/08,
Callable 3/1/03 @ 100.............. 722
2,500 Houston, Single Family Mortgage
Revenue, Series B-1, 8.00%, 6/1/14,
Callable 12/1/06 @ 102............. 2,760
1,000 Katy, Independent School District
Series B, 5.00%, 2/15/07, Callable
8/15/02 @ 102, PSFG................ 1,024
855 Laredo, Housing Finance Corp., Single
Family Mortgage Revenue, AMT,
6.20%, 10/1/19, Callable 4/1/04 @
103, GNMA.......................... 888
500 Lewisville Texas Independent School
District, 5.25%, 8/15/06, Callable
8/15/04 @ 100, PSFG................ 526
635 Lubbock, Housing Finance Corp.,
Single Family Mortgage Revenue,
8.00%, 12/1/20, Callable 1/1/99 @
100, GNMA.......................... 645
400 Lubbock, Independent School District,
4.80%, 2/15/00, PSFG............... 407
1,000 Lufkin, Health Facilities Development
Corp., Health Systems Revenue
Refunding, 6.50%, 2/15/06.......... 1,078
250 Lyford, Cons Independent School
District, 5.25%, 8/15/12, Callable
8/15/08 @ 102...................... 245
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
$ 1,000 Lyford, Cons Independent School
District, 5.50%, 8/15/22, Callable
8/15/08 @ 102...................... $ 985
520 Manor, Independent School District,
8.00%, 8/1/05, PSFG................ 642
1,045 Municipal Power Agency, 0.00%,
9/1/08............................. 637
500 National Research Lab, 6.75%,
12/1/04, Callable 12/1/01 @ 102.... 556
600 North Texas Higher Education
Authority, Student Loan Revenue,
Series D, 6.88%, 4/1/02, Callable
4/1/00 @ 102, AMBAC................ 641
9,000 Nueces County, Port Corpus Christi
Authority, Pollution Control
Revenue, AMT, 6.88%, 4/1/17,
Callable 4/1/02 @ 102.............. 9,817
5,185 Public Financing Authority, Series A,
5.00%, 2/1/16, Callable 2/1/08 @
101, AMBAC......................... 5,171
8,100 Red River Authority, Pollution
Control Revenue, AMT, 6.88%,
4/1/17, Callable 4/1/02 @ 102...... 8,844
1,000 San Angelo, Independent School
District, 5.50%, 2/15/09, Callable
2/15/06 @ 100, PSFG................ 1,063
1,500 San Antonio, Hotel Occupancy, 5.30%,
8/15/08, Callable 8/15/06 @ 102,
FGIC............................... 1,594
2,000 San Antonio, Hotel Occupancy Revenue,
0.00%, 8/15/17, FGIC............... 726
1,555 Southeast Texas Housing Finance
Corp., Residual Revenue, Series A,
ETM, 0.00%, 11/1/14................ 599
500 State, 7.00%, 12/1/99, ETM, Callable
06/01/98 @ 100..................... 506
1,500 State Department of Housing &
Community Affairs, Multi-Family
Housing Revenue, Series A, 6.30%,
1/1/16, Callable 1/1/07 @ 102...... 1,606
510 State Department of Housing &
Community Affairs, Multi-Family
Revenue, Series A, 5.90%, 7/1/06... 527
9,340 State Department of Housing &
Community Affairs, Single Family
Revenue Refunding, Series A, 0.00%,
3/1/15, Callable 9/1/04 @ 49.528... 2,986
2,985 State Higher Education Coordinating
Board, Student Loan Revenue, AMT,
0.00%, 10/1/25, Callable 10/1/01 @
100................................ 2,961
</TABLE>
Continued
31
<PAGE> 34
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
$ 375 State Ref-Vets Housing Assist, 5.45%,
06/01/00........................... $ 385
590 State Veterans Housing Assistance,
AMT, 6.05%, 12/1/12, Callable
12/1/02 @ 102...................... 607
195 Travis County, Housing Finance Corp.,
Residential Mortgage Revenue,
Series A, 7.00%, 12/1/11, Callable
12/1/01 @ 103...................... 209
80 Travis County, Housing Finance Corp.,
Single Family Mortgage Revenue
Refunding, Series A, 6.25%, 4/1/19,
Callable 4/1/99 @ 100, GNMA........ 84
1,220 Winter Garden Housing Finance Corp.,
Single Family Mortgage Revenue,
AMT, 6.20%, 10/1/19, Callable
4/1/99 @ 100, GNMA................. 1,263
--------
69,521
--------
Utah (1.0%):
1,000 Intermountain Power Agency, Utah
Power Supply, Series B, 6.00%,
7/1/16, Callable 2/11/98 @ 100..... 1,006
1,000 State Housing Finance Agency, Single
Family Mortgage, AMT, 5.95%,
7/1/09, Callable 1/1/07 @ 102,
FHA................................ 1,033
1,125 State Housing Finance Agency, Single
Family Mortgage, AMT, 6.25%,
7/1/14, Callable 1/1/07 @ 102,
FHA................................ 1,190
2,250 State Housing Finance Agency, Single
Family Mortgage, Issue A-1, 6.00%,
7/1/14, Callable 1/1/07 @ 102,
FHA................................ 2,363
225 State Housing Finance Agency, Single
Family Mortgage, Series A-1, 6.90%,
7/1/12, Callable 1/1/03 @ 102,
FHA................................ 239
600 Utah Regents Student Loans Series
I-1, 4.95%, 5/1/98, LOC AMBAC...... 602
--------
6,433
--------
Virginia (0.2%):
755 Virginia Beach Development Authority,
Multi-Family Housing Revenue, 2nd
Mortgage, Series B, 8.75%, 1/15/09,
Callable 7/15/98 @ 100............. 755
500 Virginia State Housing Development,
Series H, 5.60%, 11/01/06, Callable
5/01/05 @ 102...................... 526
--------
1,281
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Washington (1.9%):
$ 3,000 Chelan Public Utilities, Series D,
AMT, 6.35%, 7/1/28, Callable 7/1/07
@ 102, MBIA........................ $ 3,341
670 King County, Housing Authority Rural
Preservation Project, 5.60%,
1/1/18, Callable 1/1/08 @ 100,
AMT................................ 666
800 King County, Housing Authority Rural
Preservation Project, 5.75%,
1/1/28, Callable 1/1/08 @ 100,
AMT................................ 794
400 Snohomish County, 5.10%, 11/1/02,
MBIA............................... 417
2,750 State Public Power Supply, Nuclear
Project No. 2, Revenue Refunding,
Series B, 5.63%, 7/1/12, Callable
7/1/03 @ 102, FSA.................. 2,876
1,000 Washington State Housing Multifamily
Mortgage, 5.95%, 7/1/20, Callable
1/1/08 @ 103, GNMA................. 1,049
2,000 Washington State Housing Multifamily
Mortgage Revenue, 6.00%, 7/1/30,
Callable 1/1/08 @ 103, GNMA........ 2,098
1,950 Washington State Public Power Supply,
0.00%, 7/1/15...................... 775
--------
12,016
--------
West Virginia (2.2%):
1,000 Charleston Community Parking
Facilities Revenue, 0.00%,
12/1/20............................ 253
1,595 Charleston Community Parking
Facilities Revenue, 0.00%,
12/1/21............................ 378
1,630 Charleston Community Parking
Facilities Revenue, 0.00%,
12/1/22............................ 364
1,665 Charleston Community Parking
Facilities Revenue, 0.00%,
12/1/23............................ 348
3,175 Charleston Community Parking
Facilities, Sub-C, 0.00%,
12/1/26............................ 553
8,370 Kanawha-Putnam County, Single Family
Mortgage, Series A, ETM, 0.00%,
12/1/16, AMBAC..................... 3,160
2,600 Monongalia County, Series A, 6.00%,
11/15/27, Callable 11/15/02 @
102................................ 2,606
250 State, 6.00%, 6/1/99, Callable
2/11/98 @ 101, MBIA................ 253
1,500 State Housing Development Fund,
Housing Finance, AMT, 7.20%,
11/1/20, Callable 5/1/02 @ 102,
FHA................................ 1,609
</TABLE>
Continued
32
<PAGE> 35
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 2,785 Various Forty, Series A, 5.20%,
8/1/17, Callable 8/1/07 @ 102...... $ 2,833
10,800 Various Forty, Series B, 0.00%,
8/1/30, Callable 8/1/07 @ 26.78.... 1,705
--------
14,062
--------
Wisconsin (0.4%):
690 Housing & Economic Development, Home
Ownership Revenue, AMT, 8.00%,
3/1/21, Callable 9/1/00 @ 102,
FHA................................ 710
440 State, Series A, 7.50%, 1/1/15,
Callable 2/11/98 @ 101............. 446
1,000 State, Series A, AMT, 7.50%, 1/1/21,
Callable 7/1/00 @ 100.............. 1,059
300 Wisconsin Housing & Economic
Development, GO, Series A, 5.35%,
11/1/08, Callable 10/01/03 @ 102... 308
--------
2,523
--------
Wyoming (0.2%):
500 Cheyenne, 5.30%, 12/1/00............. 518
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Wyoming, continued:
$ 95 Community Development Authority,
Single Family Mortgage, Series A,
6.88%, 6/1/14, Callable 6/1/01 @
102, FHA........................... $ 98
350 Community Development Authority,
Single Family Mortgage, Series E,
AMT, 7.75%, 6/1/09, Callable
11/30/98 @ 100.9................... 364
500 Wyoming Community Development Series
E, 5.70%, 6/1/13, Callable 12/01/03
@ 102, FHA......................... 511
--------
1,491
--------
Total Municipal Bonds 619,062
--------
INVESTMENT COMPANIES (0.7%):
4,587 Provident Muni Cash.................. 4,587
--------
Total Investment Companies 4,587
--------
Total (Cost $619,344) (a) $642,464
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $638,444.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $23,415
Unrealized depreciation..................................... (295)
-------
Net unrealized appreciation................................. $23,120
=======
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other cards and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market rates. The rate reflected on the Schedule of Portfolio Investments is
the rate in effect at December 31, 1997.
Continued
33
<PAGE> 36
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<S> <C>
ACA American Capital Access
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
BIG Insured by Bond Insurance Guarantee
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FHA Insured by Federal Housing Authority
FNMA Insured by Federal National Mortgage Association
FSA Insured by Federal Security Assurance
GNMA Insured by Government National Mortgage Association
GO General Obligation
GSL Guaranteed Student Loans
LOC Letters of Credit
MBIA Insured by Municipal Bond Insurance Association
OID Original Issue Discount
PCR Pollution Control Revenue
PSFG Permanent School Fund Guarantee
VA Veterans Administration
</TABLE>
See notes to financial statements.
34
<PAGE> 37
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS (97.4%):
Arizona (0.9%):
$1,850 Maricopa County, Industrial
Development, Single Family
Mortgage Revenue, 0.00%, 12/31/14,
ETM............................... $ 783
--------
1,000 Tucson & Pima County, Single Family
Mortgage Revenue, 0.00%, 12/1/14,
ETM............................... 426
--------
1,209
--------
California (0.4%):
1,500 San Marcos, Public Facilities,
Revenue, 0.00%, 9/1/19, ETM....... 485
--------
Colorado (0.6%):
2,000 El Paso County, Single Family
Mortgage Revenue, 0.00%, 9/1/15,
ETM............................... 805
--------
Kansas (0.8%):
1,600 Kansas City, Single Family Mortgage
Revenue, Series 1983 A, 0.00%,
12/1/14, ETM...................... 675
1,000 Saline County, Single Family
Mortgage Revenue, Series 1983 A,
0.00%, 12/1/15, ETM............... 398
--------
1,073
--------
Kentucky (92.8%):
225 Ashland Utility Revenue, 6.65%,
4/1/04, Callable 4/1/98 @ 102..... 231
1,500 Berea College Utility Revenue, AMT,
5.90%, 6/1/17, Callable 6/1/07 @
102............................... 1,589
200 Boone County, Certificates of
Participation, Public Golf, 6.35%,
11/15/02.......................... 218
200 Boone County, Certificates of
Participation, Public Golf, 6.40%,
11/15/03, Callable 11/15/02 @
102............................... 221
250 Boone County, School District
Finance Corp., School Building
Revenue, 6.70%, 9/1/06, Callable
9/1/01 @ 103...................... 278
310 Boone County, School District
Finance Corp., School Building
Revenue, 7.10%, 8/1/07, Callable
8/1/00 @ 103...................... 341
1,000 Boone County, School District
Finance Corp., School Building
Revenue, 6.70%, 9/1/07, Callable
9/1/01 @ 103...................... 1,112
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 395 Boone County, School District
Finance Corp., School Building
Revenue, 7.10%, 8/1/08, Callable
8/1/00 @ 103...................... $ 434
230 Bowling Green, Key Municipal
Projects Corp., Lease Revenue,
7.20%, 10/1/01, Callable 4/1/99 @
102............................... 243
280 Bowling Green, Key Municipal
Projects Corp., Lease Revenue,
7.40%, 10/1/04, Callable 4/1/99 @
102............................... 296
280 Campbell & Kenton Counties,
Sanitation District #1, Sanitation
District Revenue, 6.38%, 8/1/03,
ETM............................... 301
580 Campbell & Kenton Counties,
Sanitation District #1, Sanitation
District Revenue, 7.13%, 8/1/05,
ETM............................... 639
415 Clinton County, School District
Finance Corp., School Building
Revenue, 6.10%, 6/1/09, Callable
6/1/02 @ 102...................... 449
445 Clinton County, School District
Finance Corp., School Building
Revenue, 6.10%, 6/1/10, Callable
6/1/02 @ 102...................... 481
325 Clinton County, School District
Finance Corp., School Building
Revenue, 6.10%, 6/1/11, Callable
6/1/02 @ 102...................... 351
510 Clinton County, School District
Finance Corp., School Building
Revenue, 6.10%, 6/1/12, Callable
6/1/02 @ 102...................... 550
345 Danville, Hospital Revenue, Hospital
Revenue, Esphraim McDowell Region,
6.40%, 4/1/00, FGIC............... 363
100 Danville, Multi-City Lease Revenue,
Metro Sewer District, 6.35%,
2/1/02, Prerefunded 2/1/01 @ 102,
MBIA.............................. 108
225 Danville, Multi-City Lease Revenue,
Metro Sewer District, 6.50%,
2/1/04, Prerefunded 2/1/01 @ 102,
MBIA.............................. 245
500 Daviess County, Hospital Revenue,
Owensboro-Daviess County, 6.00%,
8/1/04, Callable 8/1/02 @ 102,
MBIA.............................. 542
4,500 Development Finance Authority,
Hospital Revenue, Elizabeth,
Med-A, 6.00%, 11/1/10, Callable
11/1/01 @ 100, FGIC............... 4,763
</TABLE>
Continued
35
<PAGE> 38
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 250 Eastern Kentucky University,
Revenues Construction, Educational
Buildings, Series 0, 6.70%,
5/1/07, Callable 5/1/01 @ 102,
AMBAC............................. $ 274
1,000 Fayette County School District
Financial Corp., School Building
Revenue, 5.38%, 1/1/17, Callable
1/1/07 @ 102...................... 1,021
655 Fayette County, School District
Finance Corp., School Building
Refunding Revenue, 6.00%, 5/1/02,
Callable 5/1/00 @ 102............. 694
1,255 Fayette County, School District
Finance Corp., School Building
Revenue, Series A, 5.35%, 1/1/13,
Callable 1/1/07 @ 102............. 1,302
200 Hardin County, Water District #1,
Waterworks Revenue, 6.70%, 9/1/05,
Callable 3/1/01 @ 102............. 218
170 Henderson Electric Light & Power
Revenue, 5.70%, 3/1/03, Callable
1/17/98 @ 100..................... 170
1,025 Higher Education Student Loan Corp.,
Insured Student Loan Revenue,
Series C, 6.50%, 6/1/02, GSL...... 1,114
1,500 Higher Education Student Loan Corp.,
Insured Student Loan Revenue,
Series C, AMT, 5.45%, 6/1/03,
GSL............................... 1,559
1,705 Higher Education Student Loan Corp.,
Insured Student Loan Revenue,
Series D, AMT, 7.00%, 12/1/06,
Callable 12/1/01 @ 102, GSL....... 1,882
760 Housing Corp. Revenue, 7.40%,
1/1/10, Callable 7/1/00 @ 102..... 815
500 Housing Corp. Revenue, Series A,
5.40%, 1/1/05, Callable 7/1/03 @
102, FHA, FHMA, VA................ 529
500 Housing Corp. Revenue, Series A,
5.50%, 1/1/06, Callable 7/1/03 @
102, FHA, FNMA, VA................ 530
500 Housing Corp. Revenue, Series A,
5.60%, 1/1/07, Callable 7/1/03 @
102, FHA, FMHA, VA................ 528
400 Housing Corp. Revenue, Series B,
5.85%, 7/1/00, FHA, FHMA, VA...... 415
275 Housing Corp. Revenue, Series B,
6.20%, 7/1/03, Callable 7/1/02 @
102, FHA, FHMA, VA................ 292
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$1,745 Housing Corp. Revenue, Series D,
5.80%, 7/1/13, Callable 7/1/06 @
102............................... $ 1,833
410 Infrastructure Authority Revenue,
Governmental Agencies Program
Revenue, 5.25%, 8/1/04, Callable
8/1/03 @ 102...................... 431
110 Infrastructure Authority Revenue,
Governmental Agencies Program
Revenue, 6.00%, 8/1/11, Callable
8/1/01 @ 100...................... 115
500 Infrastructure Authority Revenue,
Governmental Agencies Program
Revenue, 5.75%, 8/1/13, Callable
8/1/03 @ 102...................... 529
500 Infrastructure Authority Revenue,
Governmental Agencies Program,
Refunding Revenue, 5.40%, 8/1/06,
Callable 8/1/03 @ 102............. 531
1,000 Infrastructure Authority Revenue,
Revolving Fund Program, Series E,
6.40%, 6/1/04, Callable 6/1/01 @
102............................... 1,084
710 Infrastructure Authority Revenue,
Revolving Fund Program, Series E,
6.50%, 6/1/05, Callable 6/1/01 @
102............................... 771
250 Infrastructure Authority Revenue,
Series G, 6.10%, 6/1/02........... 269
250 Interlocal School Transportation
Assoc., Equipment Lease Revenue,
6.00%, 3/1/01..................... 264
405 Interlocal School Transportation
Assoc., Equipment Lease Revenue,
6.00%, 3/1/02..................... 433
135 Jefferson County, Capital Projects,
Revenue, 7.70%, 6/1/01, ETM....... 150
500 Jefferson County, Capital Projects,
Revenue, First Mortgage Revenue,
6.38%, 12/1/07, ETM............... 568
725 Jefferson County, Capital Projects,
Revenue, Series A, 6.10%, 8/15/07,
Callable 2/15/03 @ 102............ 790
1,000 Jefferson County, Capital Projects,
Revenue, Series A, 5.50%, 4/1/10,
Callable 4/1/06 @ 102, AMBAC...... 1,069
1,000 Jefferson County, Capital Projects,
Revenue, Series A, 5.50%, 4/1/11,
Callable 4/1/06 @ 102, AMBAC...... 1,063
</TABLE>
Continued
36
<PAGE> 39
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$1,500 Jefferson County, Health Facilities
Revenue, Alliant Hospital, 5.00%,
10/1/13, Callable 10/1/07 @ 101,
MBIA.............................. $ 1,500
500 Jefferson County, Health Facilities
Revenue, Jewish Hospital
Healthcare Services, Inc., 6.05%,
5/1/02, AMBAC..................... 538
1,000 Jefferson County, Health Facilities
Revenue, Jewish Hospital
Healthcare Services, Inc., 6.10%,
5/1/03, Callable 5/1/02 @ 102,
AMBAC............................. 1,090
300 Jefferson County, Health Facilities
Revenue, Jewish Hospital
Healthcare Services, Inc., 6.20%,
5/1/04, Callable 5/1/02 @ 102,
AMBAC............................. 327
500 Jefferson County, Health Facilities
Revenue, Jewish Hospital
Healthcare Services, Inc., 6.38%,
5/1/08, Callable 5/1/02 @ 102,
AMBAC............................. 549
930 Jefferson County, Health Facilities
Revenue, Jewish Hospital
Healthcare Services, Inc., 5.65%,
1/1/10, Callable 1/1/07 @ 102..... 991
1,500 Jefferson County, Health Facilities
Revenues, University Medical
Center, 5.50%, 7/1/17, Callable
7/1/07 @ 101, MBIA................ 1,558
2,000 Jefferson County, Hospital Revenue,
Alliant Hospital Systems, 6.20%,
10/1/04, Callable 10/1/02 @ 102,
MBIA.............................. 2,192
550 Jefferson County, Pollution Control
Revenue, Louisville Gas & Electric
Co., 7.45%, 6/15/15, Callable
6/15/00 @ 102..................... 600
1,000 Jefferson County, School District
Finance Corp., School Building
Revenue, 6.00%, 1/1/04, Callable
7/1/02 @102, MBIA................. 1,084
625 Jefferson County, School District
Finance Corp., School Building
Revenue, 7.15%, 9/1/04,
Prerefunded 9/1/00 @ 103.......... 691
675 Jefferson County, School District
Finance Corp., School Building
Revenue, 7.20%, 9/1/05,
Prerefunded 9/1/00 @ 103.......... 747
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$1,430 Jefferson County, School District
Finance Corp., School Building
Revenue, 5.25%, 7/1/07, Callable
7/1/05 @ 102, MBIA................ $ 1,521
2,315 Junction City, College Revenue,
Centre College Project, 5.70%,
4/1/12, Callable 4/1/07 @ 102..... 2,518
500 Kenton County, Airport Revenue,
International, Series AR-A, AMT,
6.10%, 3/1/04, Callable 3/1/02 @
101, FSA.......................... 538
1,000 Kenton County, Airport Revenue,
International, Series AR-A, AMT,
6.20%, 3/1/05, Callable 3/1/02 @
101, FSA.......................... 1,077
500 Kenton County, Airport Revenue,
International, Series B, AMT,
5.75%, 3/1/07, Callable 3/1/03 @
102, FSA.......................... 537
500 Kenton County, Airport Revenue,
International, Series B, AMT,
5.75%, 3/1/08, Callable 3/1/03 @
102, FSA.......................... 535
380 Kenton County, Public Properties
Corp. Revenue, Community Health
Care Facilities Project, 7.00%,
10/1/06, Prerefunded 10/1/99 @
102............................... 407
200 Kenton County, School District
Finance Corp., School Building
Revenue, 6.30%, 12/1/00........... 212
100 Kenton County, School District
Finance Corp., School Building
Revenue, 6.50%, 12/1/02, Callable
12/1/01 @ 102..................... 110
325 Kenton County, School District
Finance Corp., School Building
Revenue Refunding, 5.25%, 7/1/07,
Callable 7/1/03 @ 102............. 342
495 Kenton County, Water District,
Waterworks Revenue, District #001,
6.30%, 2/1/02, FGIC............... 535
1,015 Kenton County, Water District,
Waterworks Revenue, District #001,
6.38%, 2/1/04, Callable 2/1/02 @
103, FGIC......................... 1,120
1,245 Kentucky Economic Development
Finance Authority Revenue
Mortgage, Southern Central
Nursing, 6.00%, 7/1/27, Callable
1/1/08 @105,...................... 1,325
</TABLE>
Continued
37
<PAGE> 40
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 240 Lexington-Fayette Urban County
Government, Economic Development
Revenue, 7.54%, 12/1/03........... $ 245
300 Lexington-Fayette Urban County
Government, Educational Facilities
Revenue, Transylvania University,
7.15%, 2/1/00, Callable 2/1/99 @
102, MBIA......................... 316
250 Lexington-Fayette Urban County
Government, Educational Facilities
Revenue, Transylvania University,
7.25%, 2/1/02, Callable 2/1/99 @
102, MBIA......................... 264
335 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Capital Projects Mortgage
Revenue, 6.20%, 4/1/05,
Prerefunded 4/1/02 @ 102.......... 367
355 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Capital Projects Mortgage
Revenue, 6.30%, 4/1/06,
Prerefunded 4/1/02 @ 102.......... 391
380 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Capital Projects Mortgage
Revenue, 6.40%, 4/1/07,
Prerefunded 4/1/02 @ 102.......... 420
405 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Capital Projects Mortgage
Revenue, 6.40%, 4/1/08,
Prerefunded 4/1/02 @ 102.......... 447
425 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Capital Projects Mortgage
Revenue, 6.40%, 4/1/09,
Prerefunded 4/1/02 @ 102.......... 469
425 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Greenspace Project Revenue,
6.75%, 12/1/05, Prerefunded
12/1/00 @ 102..................... 464
240 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Greenspace Project Revenue,
6.75%, 12/1/07, Prerefunded
12/1/00 @ 102..................... 262
350 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Mortgage Revenue, 6.70%,
2/1/02, Callable 2/1/00 @ 102..... 374
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 210 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Mortgage Revenue, 6.88%,
2/1/06, Callable 2/1/00 @ 102..... $ 225
430 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Mortgage Revenue, 6.75%,
7/1/07, Prerefunded 7/1/00 @
102............................... 466
500 Lexington-Fayette Urban County
Government, Public Facilities
Corp., Sewer System Revenue,
6.35%, 7/1/07, Callable 7/1/02 @
102, MBIA......................... 549
935 Lexington-Fayette Urban County
Government, Revenue, University of
Kentucky Alumni Assoc., Inc.,
6.50%, 11/1/07, Callable 11/1/04 @
102, MBIA......................... 1,065
250 Lexington-Fayette Urban County
Government, School Building
Revenue, 6.85%, 6/1/01, Callable
12/1/99 @ 103..................... 270
625 Lexington-Fayette Urban County
Government, School Building
Revenue, 7.00%, 6/1/04, Callable
12/1/99 @ 103..................... 678
1,930 Lexington-Fayette Urban County
Government, Sewer System Revenue,
6.35%, 7/1/09, Callable 7/1/02 @
102, MBIA......................... 2,120
1,420 Louisville & Jefferson County,
Airport Authority Revenue, AMT,
6.00%, 7/1/10, Callable 7/1/07 @
102, MBIA......................... 1,584
200 Louisville & Jefferson County,
Metropolitan Sewer District, Sewer
Revenue, 6.25%, 6/1/99, ETM....... 207
300 Louisville & Jefferson County,
Metropolitan Sewer District, Sewer
Revenue, 6.90%, 5/1/01,
Prerefunded 5/1/99 @ 102, MBIA.... 318
825 Louisville & Jefferson County, Sewer
& Drain System Revenue, 6.40%,
5/15/08, Callable 11/15/04 @ 102,
AMBAC............................. 941
</TABLE>
Continued
38
<PAGE> 41
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 205 Louisville Parking Authority
Revenue, 6.60%, 12/1/03, Callable
6/1/01 @ 103...................... $ 226
300 Louisville Public Properties Corp.
Revenue, 6.00%, 4/1/04, Callable
4/1/99 @ 102...................... 312
300 Louisville Public Properties Corp.
Revenue, 6.00%, 4/1/05, Callable
4/1/99 @ 102...................... 313
295 Louisville Public Properties Corp.,
First Mortgage Revenue, 6.15%,
12/1/05, Callable 12/1/02 @ 102... 322
200 Louisville Public Properties Corp.,
First Mortgage Revenue, 6.40%,
12/1/07, Callable 12/1/02 @ 102... 220
1,000 Louisville Water Works Board, Water
System Revenue, Louisville Water
Co., 5.40%, 11/15/04, Callable
11/15/00 @ 102.................... 1,049
500 Louisville Water Works Board, Water
System Revenue, Louisville Water
Co., 5.63%, 11/15/07, Callable
11/15/00 @ 102.................... 530
1,540 Louisville Water Works Board, Water
System Revenue, Louisville Water
Co., 5.75%, 11/15/09, Callable
11/15/00 @ 102.................... 1,636
1,530 Louisville Water Works Board, Water
System Revenue, Louisville Water
Co., 5.75%, 11/15/10, Callable
11/15/00 @ 102.................... 1,624
2,090 McCracken County, Hospital Revenue,
Mercy Health System, 6.40%,
11/1/07, Callable 11/1/04 @ 102,
MBIA.............................. 2,361
1,000 McCracken County, Hospital Revenue,
Mercy Health System, Series A,
6.20%, 11/1/05, Callable 11/1/04 @
102, MBIA......................... 1,124
505 McCreary County, School District
Finance Corp., School Building
Revenue, 6.60%, 10/1/08, Callable
10/1/01 @ 103..................... 561
215 Mercer County, School District
Finance Corp., School Building
Revenue, 6.38%, 12/1/07, Callable
12/1/01 @ 103..................... 234
300 Morehead State University, Housing &
Dining System Revenue, 6.10%,
11/1/05, Callable 11/1/01 @ 102,
AMBAC............................. 324
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 200 Morehead State University, Housing &
Dining System Revenue, Series M,
6.30%, 11/1/08, Callable 11/1/01 @
102, AMBAC........................ $ 218
215 Muhlenberg County, School District
Finance Corp., School Building
Revenue, 5.85%, 8/1/09, Callable
8/1/02 @ 102...................... 230
750 Muhlenberg County, School District
Finance Corp., School Building
Revenue, 5.85%, 8/1/10, Callable
8/1/02 @ 102...................... 804
460 Murray State University Revenues,
Series G, Second Series, 5.60%,
5/1/07, Callable 5/1/03 @ 102..... 491
240 Murray State University, Educational
Buildings Revenue, 5.60%, 5/1/06,
Callable 5/1/03 @ 102............. 257
530 Northern Kentucky University,
Educational Buildings Revenue,
6.10%, 5/1/06, Callable 5/1/02 @
102, AMBAC........................ 576
300 Owensboro, Electric Light & Power
Revenue, 6.75%, 1/1/03, ETM....... 320
205 Paducah Electric Plant Board
Revenue, 6.30%, 1/1/08, Callable
1/1/01 @ 102, AMBAC............... 221
300 Paducah Waterworks Revenue, 6.10%,
7/1/00, MBIA...................... 315
300 Paducah Waterworks Revenue, 6.60%,
7/1/05, Callable 7/1/01 @ 102,
MBIA.............................. 330
1,085 Perry County, School District,
Financial Corp. School Building
Revenue, 6.25%, 7/1/09, Callable
7/1/02 @ 102...................... 1,180
330 Scott County, School District
Financial Corp., School Building
Revenue, 7.10%, 12/1/02, Callable
12/1/98 @ 103..................... 349
545 Shelby County, School District
Financial Corp., School Building
Revenue, 6.10%, 9/1/02, Callable
9/1/01 @103....................... 588
100 Shelby County, School District
Financial Corp., School Building
Revenue, 6.25%, 9/1/03, Callable
9/1/01 @ 103...................... 109
</TABLE>
Continued
39
<PAGE> 42
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 500 Shelby County, School District
Financial Corp., School Building
Revenue, 6.50%, 9/1/05, Callable
9/1/01 @ 103...................... $ 554
200 Shelby County, School District
Financial Corp., School Building
Revenue, 6.50%, 9/1/07, Callable
9/1/01 @ 103...................... 220
1,000 State Economic Development Finance
Authority, Hospital Revenue,
Appalachian Regulatory Hospital,
5.50%, 10/1/07.................... 1,029
1,000 State Property & Buildings
Commission Revenues, Project #26,
7.40%, 6/1/00, Callable 12/1/98
@102.............................. 1,052
2,300 State Property & Buildings
Commission Revenues, Project #50,
6.00%, 2/1/10, Prerefunded 2/1/01
@ 100............................. 2,430
1,475 State Property & Buildings
Commission Revenues, Project #53,
6.25%, 10/1/02, Callable 10/1/01
@102.............................. 1,606
1,000 State Property & Buildings
Commission Revenues, Project #54,
5.90%, 9/1/07, Callable 9/1/02 @
102............................... 1,078
1,000 State Property & Buildings
Commission Revenues, Project #56,
5.70%, 9/1/06, Callable 9/1/04 @
102............................... 1,089
1,000 State Property & Buildings
Commission Revenues, Project #56,
5.80%, 9/1/07, Callable 9/1/04 @
102............................... 1,091
1,000 State Property & Buildings
Commission Revenues, Project #59,
5.30%, 5/1/07, Callable 11/1/05
@102.............................. 1,063
1,000 State Property & Buildings
Commission Revenues, Project #59,
5.38%, 11/1/09, Callable 11/1/05 @
102............................... 1,058
275 State Property & Buildings
Commission Revenues, Project
Toyota Corp., 6.40%, 11/1/01...... 298
235 State Turnpike Authority, Economic
Development, Recovery Road
Revenue, 6.13%, 7/1/07, ETM....... 253
500 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 7.13%,
5/15/01, Prerefunded 5/15/00
@101.5............................ 542
750 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 5.70%,
1/1/03............................ 799
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$1,000 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 5.20%,
7/1/03, AMBAC..................... $ 1,049
1,000 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 5.40%,
7/1/05, AMBAC..................... 1,071
1,000 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 7.38%,
5/15/07, Prerefunded 5/15/00 @
101.5............................. 1,090
1,000 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 6.50%,
7/1/08, AMBAC..................... 1,174
1,000 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 5.50%,
7/1/09, AMBAC..................... 1,089
1,000 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 0.00%,
1/1/10, FGIC...................... 567
2,600 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 5.63%,
7/1/10, Callable 7/1/05 @ 102,
AMBAC............................. 2,810
500 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project, 5.75%,
7/1/11, Callable 7/1/05 @ 102,
AMBAC............................. 544
2,750 State Turnpike Authority, Economic
Development, Road Revenue,
Revitalization Project S, 5.50%,
7/1/08, AMBAC..................... 2,999
500 State Turnpike Authority, Resource
Recovery Revenue, 6.63%, 7/1/08,
ETM............................... 559
1,000 State Turnpike Authority, Resource
Recovery Revenue, 1985 Series A,
6.00%, 7/1/09, Callable 1/24/98 @
100............................... 1,002
215 State Turnpike Authority, Toll Road
Revenue, 6.13%, 7/1/08, ETM....... 232
535 University of Kentucky Revenues,
Community Colleges, Educational
Buildings Revenue, 6.30%, 5/1/02,
Callable 11/1/01 @102............. 579
</TABLE>
Continued
40
<PAGE> 43
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Kentucky Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$1,000 University of Kentucky Revenues,
Community Colleges, Educational
Buildings Revenue Bonds, 6.60%,
5/1/01............................ $ 1,079
475 University of Kentucky Revenues,
Community Colleges, Educational
Buildings Revenue, Southeast,
6.30%, 5/1/05, Callable 11/1/01
@102.............................. 518
500 University of Louisville Revenues,
Construction of Educational
Buildings Revenue, Series I,
5.40%, 5/1/07, Callable 5/1/03 @
102............................... 530
500 University of Louisville Revenues,
Construction of Educational
Buildings Revenue, Series I,
5.40%, 5/1/08, Callable 5/1/03 @
102............................... 528
500 University of Louisville Revenues,
Construction of Educational
Buildings Revenue, Series I,
5.40%, 5/1/09, Callable 5/1/03 @
102............................... 525
1,000 University of Louisville,
Educational Buildings Revenue,
5.38%, 5/1/06, Callable 5/1/03
@102.............................. 1,063
330 Versailles County, Water & Sewer,
Revenue, 6.30%, 12/1/09, Callable
12/1/01 @103...................... 361
305 Warren County, Water District
Revenue, 7.13%, 1/1/03, Callable
7/1/99 @ 103, MBIA................ 328
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------ --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky, continued:
$ 950 Winchester Utilities Revenue, 5.30%,
7/1/09, Callable 7/1/03 @ 102..... $ 993
--------
121,760
--------
Louisiana (1.0%):
3,000 Public Facilities Authority Revenue,
Multi-Family, Series A, 0.00%,
2/1/20, ETM....................... 933
1,000 Public Facilities Authority Revenue,
Series B, 0.00%, 12/1/19, ETM..... 313
--------
1,246
--------
Mississippi (0.6%):
2,500 Home Corp., Residual Revenue, 0.00%,
9/15/16, Callable 3/15/04 @ 41.6,
ETM............................... 830
--------
Texas (0.3%):
1,000 Central Housing Finance Corp.,
Single Family Mortgage Revenue,
Series A, 0.00%, 9/1/16, ETM...... 379
--------
Total Municipal Bonds 127,787
--------
INVESTMENT COMPANIES (1.5%):
1,937 The One Group Municipal Money Market
Fund, Fiduciary Class............. 1,937
--------
Total Investment Companies 1,937
--------
Total (Cost $121,005) (a) $129,724
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $131,149.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $8,719
Unrealized depreciation..................................... --
------
Net unrealized appreciation................................. $8,719
======
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FHA Insured by Federal Housing Administration
FNMA Insured by Federal National Mortgage Association
FSA Insured by Federal Security Assurance
GSL Guaranteed Student Loans
MBIA Insured by Municipal Bond Insurance Association
VA Veterans Administration
</TABLE>
See notes to financial statements.
41
<PAGE> 44
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (99.3%):
California (0.6%):
$ 1,000 Escondido Multifamily Housing
Revenue, 5.40%, 1/1/27, Callable
7/1/05 @ 101.5, FNMA............. $ 1,052
--------
Colorado (1.2%):
2,810 El Paso County, Single Family
Mortgage Revenue, Series A,
0.00%, 5/1/15, ETM............... 1,132
2,335 Housing Finance Authority, Single
Family Mortgage Revenue, 0.00%,
9/1/14, ETM...................... 982
--------
2,114
--------
Kansas (0.5%):
1,000 Kansas City, Single Family Mortgage
Revenue, Series 1983 A, 0.00%,
12/1/14, ETM..................... 422
1,390 Saline County, Single Family
Mortgage Revenue, Series 1983 A,
0.00%, 12/1/15, ETM.............. 553
--------
975
--------
Massachusetts (0.6%):
1,000 State GO, 6.75, 8/1/09, Callable
8/1/01@ 102, AMBAC............... 1,098
--------
Mississippi (0.6%):
3,000 Home Corp., Residual Revenue,
0.00%, 9/15/16, Callable 3/15/04
@ 41.6, ETM...................... 996
--------
Missouri (0.7%):
1,000 State Health, Revenue, 6.40%,
6/1/10, MBIA..................... 1,169
--------
Ohio (94.0%):
1,000 Adams County, GO, School District,
5.45%, 12/1/08, Callable 12/1/05
@ 102, MBIA...................... 1,079
1,000 Air Quality Development Authority,
Pollution Control Revenue, Ohio
Edison, 7.45%, 3/1/16, Callable
3/1/00 @ 102, FGIC............... 1,081
1,045 Akron Sewer Systems, Revenue,
5.30%, 12/1/05, MBIA............. 1,117
1,000 Akron Sewer Systems, Revenue,
5.65%, 12/1/08, Callable 12/1/06
@ 102, MBIA...................... 1,094
1,000 Akron, Bath, Copley Ohio Hospital
Revenue, 7.45%, 11/15/20,
Prerefunded 11/15/00 @ 102,
AMBAC............................ 1,109
1,000 Allen County, Justice Center, GO,
7.00%, 12/1/15, Prerefunded
12/1/01 @ 101, AMBAC............. 1,113
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 3,000 Bexley School District, GO, 6.50%,
12/1/16, Prerefunded 12/1/01
@102............................. $ 3,307
1,000 Big Walnut Ohio School District,
GO, 7.30%, 6/1/15, Prerefunded
6/1/01 @ 102, AMBAC.............. 1,120
250 Big Walnut Ohio School District,
GO, 5.10%, 12/1/15, Callable
12/01/07 @ 101, AMBAC............ 251
725 Bowling Green State University,
Revenue, 5.65%, 6/1/11, Callable
6/1/06 @ 101, AMBAC.............. 782
1,000 Butler County, Hospital Facilities,
6.75%, 11/15/10, Callable
11/15/01 @ 102, FGIC............. 1,100
750 Cincinnati, GO, 6.75%, 12/1/00..... 808
2,775 Clermont County, Waterworks,
Revenue, 6.63%, 12/1/15,
Prerefunded 12/1/01 @102, AMBAC.. 3,076
1,000 Cleveland Airport Systems Revenue,
Series A, AMT, 5.13%, 1/1/13,
Callable 1/1/08 @ 101............ 999
4,500 Cleveland Public Power System,
Revenue, 6.40%, 11/15/06,
Callable 11/15/04 @ 102, MBIA.... 5,075
3,000 Cleveland Public Power System,
Revenue, 0.00%, 11/15/11, MBIA... 1,535
1,000 Cleveland Stadium Project, 5.25%,
11/15/12, Callable 11/15/07 @
102, AMBAC....................... 1,030
2,000 Cleveland Waterworks, Revenue,
5.50%, 1/1/13, MBIA.............. 2,144
1,850 Cleveland Waterworks, Revenue,
Series F-92B, 6.25%, 1/1/06,
Callable 1/1/02 @ 102, AMBAC..... 2,015
3,750 Cleveland Waterworks, Revenue,
Series F-92B, 6.50%, 1/1/11,
Callable 1/1/02 @ 102, AMBAC..... 4,095
50 Cleveland Waterworks, Revenue,
Series F-92B, 6.50%, 1/1/11,
Prerefunded 1/1/02 @102, AMBAC... 55
500 Cleveland, GO, 7.50%, 8/1/07,
Prerefunded 2/1/03 @ 100, AMBAC.. 575
1,000 Cleveland, GO, 6.88%, 7/1/09,
Prerefunded 7/1/99 @102, MBIA.... 1,062
1,000 Cleveland, GO, 6.38%, 7/1/12,
Callable 7/1/02 @ 102, MBIA...... 1,106
</TABLE>
Continued
42
<PAGE> 45
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,225 Columbus Municipal Airport No.
30-E-U, GO, 6.20%, 4/15/04,
Callable 4/15/01 @ 100........... $ 1,305
1,000 Columbus Sewer Improvements, GO,
6.75%, 9/15/06, Callable 9/15/01
@ 100............................ 1,094
2,285 Columbus Waterworks Enlargement No.
44, GO, 6.00%, 5/1/11, Callable
5/1/03 @ 102..................... 2,501
1,000 Columbus Waterworks Enlargement No.
44, GO, 6.00%, 5/1/12, Callable
5/1/03 @ 102..................... 1,094
1,000 Columbus, GO, 6.40%, 1/1/07,
Callable 1/1/02 @ 102............ 1,096
1,000 Columbus, GO, 5.00%, 06/15/12,
Callable 6/15/08 @ 101........... 1,021
1,000 Cuyahoga County, Hospital Revenues,
5.13%, 2/15/13, Callable 2/15/07
@ 102, MBIA...................... 1,008
1,000 Cuyahoga County, Hospital Revenues,
Series A, 5.50%, 1/15/10,
Callable 1/15/06 @ 102, MBIA..... 1,063
1,000 Cuyahoga County, Jail Facilities,
GO, 7.00%, 10/1/13, Prerefunded
10/1/01 @ 102.................... 1,114
1,500 Cuyahoga County, Public
Improvements, GO, 6.70%, 10/1/10,
Prerefunded 10/1/99 @102......... 1,597
1,000 Delaware County, Library District,
GO, 7.25%, 11/1/10, Prerefunded
11/1/00 @102..................... 1,106
1,000 Delaware County, Sewer, GO, 5.60%,
12/1/10, Callable 12/1/05 @
101.............................. 1,068
2,165 Dublin City School District, GO,
0.00%, 12/1/09, MBIA............. 1,253
2,150 Dublin City School District, GO,
0.00%, 12/1/10, MBIA............. 1,174
1,650 Dublin City School District, GO,
0.00%, 12/1/11, MBIA............. 848
1,185 Dublin City School District, GO,
5.00%, 12/1/12, Callable 12/1/07
@ 101, MBIA...................... 1,197
1,000 Fairfield County, Hospital
Improvement Revenue,
Lancaster-Fairfield Community
Hospital, 7.10%, 6/15/21,
Prerefunded 6/15/01 @102, MBIA... 1,113
500 Fairfield County, School District,
GO, 7.75%, 12/1/09, Callable
12/1/98 @ 102, AMBAC............. 528
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,500 Franklin County, Health Care
Facilities Revenue, 5.50%,
11/1/16, Callable 11/1/02 @
102.............................. $ 1,510
1,000 Franklin County, Health Care
Facilities Revenue, 5.50%,
7/1/17, Callable 07/01/08 @
101.............................. 989
1,290 Franklin County, Hospital Revenue,
Children's Hospital, 5.65%,
11/1/08, Callable 11/1/06 @
101.............................. 1,401
1,065 Franklin County, Hospital Revenue,
Children's Hospital, 5.75%,
11/1/09, Callable 11/1/06 @
101.............................. 1,157
800 Franklin County, Hospital Revenue,
Children's Hospital, 5.80%,
11/1/10, Callable 11/1/06 @
101.............................. 869
2,000 Franklin County, Hospital Revenue,
Children's Hospital Project,
Series A, 6.50%, 5/1/07, Callable
11/1/02 @ 102.................... 2,215
1,000 Franklin County, Hospital Revenue,
Children's Hospital Project,
Series A, 6.60%, 11/1/11,
Callable 11/1/01 @ 102........... 1,103
1,000 Franklin County, Hospital Revenue,
Holy Cross Health, 7.65%, 6/1/10,
Prerefunded 6/1/00 @ 102, AMBAC.. 1,101
1,000 Franklin County, Hospital Revenue,
Riverside United, Series B,
7.60%, 5/15/20, Prerefunded
5/15/00 @ 102.................... 1,098
1,000 Greater Cleveland Regional
Transportation Authority, GO,
5.60%, 12/1/11, Callable 12/1/06
@ 101, FGIC...................... 1,073
1,600 Greene County, GO, 6.25%, 12/1/09,
Callable 12/1/02 @ 102, AMBAC.... 1,761
1,000 Greene County, Water System,
Revenue, 6.85%, 12/1/11, Callable
12/1/01 @ 102, AMBAC............. 1,107
1,500 Hamilton County, Building
Improvement, Museum Center, GO,
6.50%, 12/1/09, Callable 12/1/01
@ 102............................ 1,649
1,500 Hamilton County, Economic
Development, Housing Revenue,
AMT, 5.50%, 1/1/12, Callable
1/1/07 @ 102, FNMA............... 1,544
1,500 Hamilton County, Electric Systems,
Revenue, 6.13%, 10/15/08,
Callable 10/15/02 @ 102, FGIC.... 1,637
</TABLE>
Continued
43
<PAGE> 46
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,500 Hamilton County, Hospital
Facilities, Bethesda Hospital,
Series A, 6.25%, 1/1/12, Callable
1/1/03 @ 102..................... $ 1,618
1,265 Hamilton County, Hospital
Facilities, Christ Hospital,
Series B, 6.63%, 1/1/06, Callable
1/1/01 @ 100, FGIC............... 1,355
380 Hamilton County, Sewer System,
Revenue, 6.30%, 12/1/01,
Prerefunded 6/1/01 @102.......... 413
1,000 Hamilton Waterworks, Revenue, Water
Utility Improvement, 6.40%,
10/15/07, Callable 10/15/01 @
102, MBIA........................ 1,094
1,250 Housing Finance Agency, Revenue,
Mortgage, Series A-1, 6.20%,
9/1/14, Callable 3/1/05 @ 102,
GNMA............................. 1,338
1,000 Huron County, Correctional
Facility, Issue I, GO, 5.70%,
12/1/11, Callable 12/1/07 @ 102,
MBIA............................. 1,100
1,000 Kent State University, General
Receipts Revenue, 6.45%, 5/1/12,
Callable 5/1/02 @ 102, AMBAC..... 1,095
3,000 Lakewood Sanitation Sewer System,
Revenue, Special Obligation,
6.40%, 12/1/11, Callable 12/1/01
@ 102............................ 3,263
1,000 Logan County School District, GO,
7.10%, 12/1/12, Prerefunded
12/1/01 @ 101, AMBAC............. 1,117
1,000 Lorain County, Hospital Revenue,
6.00%, 9/1/05, MBIA.............. 1,108
1,000 Lorain County, Hospital Revenue,
5.63%, 9/1/12, Callable 9/1/07 @
102, MBIA........................ 1,078
1,000 Marysville School District, GO,
7.20%, 12/1/10, Prerefunded
12/1/00 @ 102, AMBAC............. 1,104
1,000 Miami County, GO, 5.25%, 12/1/17,
Callable 12/1/7 @ 102............ 1,006
2,500 Middleburg Heights Hospital, 5.70%,
8/15/10, Callable 8/15/08 @ 102,
FSA.............................. 2,756
1,000 Montgomery County Hospital, 5.35%,
12/1/08, Callable 12/1/07 @
101.............................. 1,025
325 Montgomery County Hospital, 5.65%,
12/1/12, Callable 12/1/07 @
101.............................. 335
2,000 Montgomery County, Sisters of
Charity, Series A, 6.50%,
5/15/08, Callable 5/15/01 @ 102,
MBIA............................. 2,180
1,000 North Royalton, GO, 7.50%, 12/1/11,
Callable 12/1/00 @ 102........... 1,110
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,000 Northeast Ohio Regional Sewer
District Wastewater, Revenue,
6.50%, 11/15/08, Prerefunded
11/15/01 @101, AMBAC............. $ 1,095
940 Ohio Capital Corp. for Housing,
5.60%, 1/1/07, Callable 7/1/03 @
102, MBIA........................ 980
665 Ohio Housing Finance, Revenue,
7.50%, 9/1/10, Callable 9/1/00 @
102, GNMA........................ 708
1,000 Ohio State University, University &
College Improvements, Revenue,
5.50%, 12/1/03, Callable 12/1/02
@ 102............................ 1,067
500 Olentangy Local School District,
GO, 7.75%, 12/1/11, BIG.......... 655
565 Olmstead Falls Ohio School
District, GO, 6.85%, 12/15/11,
Prerefunded 12/15/04 @ 102,
FGIC............................. 660
1,250 Olmstead Falls, Local School
District, Revenue, 0.00%,
12/15/10, AMBAC.................. 677
500 Orrville Electric Revenue, 7.50%,
12/1/10, Callable 12/1/98 @ 102,
AMBAC............................ 527
1,000 Ottawa County, GO, 7.00%, 9/1/11,
Callable 9/1/01 @ 102, AMBAC..... 1,107
1,000 Pickerington Local School District,
GO, 7.00%, 12/1/13, Prerefunded
12/1/00 @102, AMBAC.............. 1,099
1,000 Piqua City School District, GO,
5.20%, 12/01/15, Callable 12/1/7
@ 102, FGIC...................... 1,014
2,600 Portage County, Robinson Memorial
Hospital Project, 5.63%,
11/15/07, Callable 11/15/04 @102,
MBIA............................. 2,816
2,220 Rocky River City School District,
School Improvements, GO, 6.90%,
12/1/11, Callable 2/1/00 @ 102... 2,431
1,000 Saint Mary's Electric Systems
Mortgage, Revenue, 7.15%,
12/1/10, Callable 2/1/00 @ 102,
AMBAC............................ 1,103
1,000 Sandusky City School District, GO,
7.30%, 12/1/10, Callable 12/1/00
@ 102............................ 1,106
1,000 Shaker Heights City Schools, GO,
7.10%, 12/15/10.................. 1,218
1,710 Springfield County, School
District, GO, 0.00%, 12/1/12,
AMBAC............................ 826
</TABLE>
Continued
44
<PAGE> 47
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,000 Springfield, GO, 6.88%, 9/1/06,
Callable 9/1/01 @ 102, AMBAC..... $ 1,110
1,000 State Building Authority, 7.35%,
4/1/09, Prerefunded 4/1/00 @ 102,
MBIA............................. 1,090
2,000 State Building Authority, Adult
Correctional Building, Series A,
6.13%, 10/1/09, Callable 10/1/03
@ 102............................ 2,206
1,000 State Building Authority, Adult
Correctional Building, Series A,
5.50%, 4/1/13, Callable 4/1/07 @
101, AMBAC....................... 1,056
1,000 State Building Authority, Highway
Safety Building, 5.38%, 10/1/09,
AMBAC............................ 1,065
1,000 State Building Authority, State
Correctional Facilities, Series
A, 6.50%, 10/1/01................ 1,085
1,165 State Building Authority, State
Facilities Transportation
Building Fund, Series A, 6.50%,
9/1/09, Callable 9/1/04 @ 102,
AMBAC............................ 1,317
1,000 State Building Authority, State
Facilities, Administration
Building Funds, Series A, 5.75%,
10/1/06, Callable 10/1/04 @ 102,
MBIA............................. 1,097
2,000 State Building Authority, State
Facilities, J. Rhodes, Series A,
6.38%, 6/1/07, Callable 6/1/01 @
102.............................. 2,174
1,000 State Educational Loan Revenue,
Series A-1, AMT, 5.40%, 12/1/09,
Callable 6/1/07 @ 102, AMBAC..... 1,053
1,750 State Elementary & Secondary
Education, Revenue, 5.63%,
12/1/06.......................... 1,911
2,510 State Fresh Water Development, GO,
5.80%, 6/1/11, Callable 6/1/05 @
102, AMBAC....................... 2,734
1,150 State Higher Educational Facilities
Revenue, 0.00%, 7/1/10........... 1,124
1,200 State Higher Educational Facilities
Revenue, 5.25%, 10/1/12, Callable
10/1/07 @ 101.................... 1,231
200 State Higher Educational Facilities
Revenue, 7.25%, 12/1/12, Callable
12/1/00 @ 102, FGIC.............. 220
800 State Higher Educational Facilities
Revenue, 7.25%, 12/1/12, Callable
12/01/00 @ 102, FGIC............. 885
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,000 State Higher Educational
Facilities, Revenue, Case
Western, 7.13%, 10/1/14, Callable
10/1/00 @ 102.................... $ 1,098
1,545 State Housing Finance, Mortgage
Revenue, Series B-3, AMT, 5.25%,
9/1/10, Callable 9/1/07 @ 102,
GNMA............................. 1,579
1,000 State Liquor Profits Revenue,
6.85%, 9/1/00.................... 1,072
1,000 Strongsville, GO, 6.70%, 12/1/11,
Callable 12/1/06 @ 102........... 1,159
1,335 Strongsville, GO, 5.05%, 12/01/14,
Callable 12/01/07 @ 101.......... 1,349
800 Toledo Sewer Revenue, 6.20%,
11/15/02, AMBAC.................. 874
1,000 Toledo Sewer System Revenue, 7.38%,
11/15/10, Callable 11/15/98 @
102, MBIA........................ 1,050
1,000 Toledo, GO, 5.63%, 12/1/11,
Callable 12/1/06 @ 102, AMBAC.... 1,085
1,000 Toledo, GO, Series B, 0.00%,
12/1/11, FGIC.................... 507
1,000 University of Cincinnati, Revenue,
7.30%, 6/1/09, Prerefunded 6/1/99
@ 100............................ 1,047
1,000 University of Cincinnati, Revenue,
General Receipts, University &
College Improvements, 7.00%,
6/1/11, Prerefunded 6/1/01 @
102.............................. 1,106
1,000 University of Cincinnati, Revenue,
Certificates of Participation,
University & College
Improvements, 6.75%, 12/1/09,
Callable 12/1/01 @ 102, MBIA..... 1,101
1,000 University of Cincinnati, Revenue,
General Receipts, 5.75%, 6/1/13,
Callable 6/1/06 @ 101............ 1,070
1,000 University of Cincinnati, Revenue,
General Receipts, Health &
Hospital Improvements, 7.10%,
6/1/10, Callable 6/1/99 @ 102.... 1,063
1,000 University of Cincinnati, Revenue,
Series R2, 6.25%, 6/1/09,
Callable 12/1/02 @ 102........... 1,106
1,000 Water Development Authority,
Pollution Control Facilities,
5.50%, 12/1/09, Callable 6/1/05 @
101, MBIA........................ 1,065
</TABLE>
Continued
45
<PAGE> 48
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Ohio, continued:
$ 1,500 Water Development Authority, Water
Development Revenue, 7.00%,
12/1/09, Callable 6/1/00 @ 102,
ETM, AMBAC....................... $ 1,771
1,000 Westerville, Minerva Park & Blendon
Joint Township, Saint Ann's
Hospital, Series B, 6.80%,
9/15/06, Callable 9/15/01 @ 102,
AMBAC............................ 1,140
2,750 Westerville, Minerva Park & Blendon
Joint Township, Saint Ann's
Hospital, Series B, 7.00%,
9/15/12, Callable 9/15/01 @ 102,
AMBAC............................ 3,230
500 Westlake Ohio Safety, GO, 7.65%,
12/1/08, Callable 12/1/98 @
102.............................. 528
1,000 Worthington City School District,
GO, 7.45%, 12/1/12, Prerefunded
12/1/99 @102, MBIA............... 1,083
--------
167,747
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas (0.5%):
$ 2,500 Southeast Texas Housing Financial
Corp., Revenue, 0.00%, 9/1/17,
ETM, MBIA........................ $ 900
--------
Washington (0.6%):
1,000 State, Series A & AT-6, GO, 6.25%,
2/1/11........................... 1,151
--------
Total Municipal Bonds........................ 177,202
--------
INVESTMENT COMPANIES (0.2%):
273 Fidelity Ohio Tax Free Money Market
Fund............................. 273
0 The One Group Ohio Municipal Money
Market Fiduciary Class (b)....... 0
--------
Total Investment Companies 273
--------
Total (Cost $164,591) (a) $177,475
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $178,334.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows
(amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $12,884
Unrealized depreciation..................................... --
-------
Net unrealized appreciation................................. $12,884
=======
</TABLE>
(b) Rounds to less than 1,000.
* Variable rate securities having liquidity sources through bank letters of
credit or other cards and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market rates. The rate reflected on the Schedule of Portfolio Investments is
the rate in effect at December 31, 1997.
<TABLE>
<S> <C>
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
BIG Insured by Bond Insurance Guarantee
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FNMA Insured by Federal National Mortgage Association
FSA Insured by Federal Security Assurance
GNMA Insured by Government National Mortgage Association
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
See notes to financial statements.
46
<PAGE> 49
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Louisiana Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (100.4%):
Louisiana (100.4%):
$ 1,165 Ascension Parish, Gravity Drain,
Sales & Use Tax, 5.40%, 12/1/07,
Callable 12/1/06 @ 100, FGIC....... $ 1,248
1,230 Ascension Parish, Gravity Drain,
Sales & Use Tax, 5.50%, 12/1/08,
Callable 12/1/06 @ 100, FGIC....... 1,320
2,500 Bastrop, Industrial Development
Board, Pollution Control Revenue,
International Paper Co. Project,
6.90%, 3/1/07, Callable 3/1/02 @
102................................ 2,764
700 Baton Rouge, Public Improvements
Sales & Use Tax, 6.85%, 8/1/00,
Callable 8/1/99 @ 102, AMBAC....... 743
800 Baton Rouge, Public Improvements
Sales & Use Tax, 6.90%, 8/1/01,
Callable 8/1/99 @ 102, AMBAC....... 851
765 Baton Rouge, Public Improvements
Sales & Use Tax, 6.38%, 8/1/09,
Callable 8/1/01 @ 101.5, FSA....... 830
2,000 Baton Rouge, Public Improvements
Sales & Use Tax, Series A, 6.00%,
8/1/04, Callable 8/1/01 @ 101.5,
FSA................................ 2,146
700 Bossier City, Public Improvements
Sales & Use Tax Revenue, 5.05%,
11/1/11, Callable 11/1/07 @ 100,
FGIC............................... 715
805 Bossier City, Public Improvements
Sales & Use Tax Revenue, Series ST,
6.20%, 11/1/07, Callable 11/1/01 @
102, AMBAC......................... 876
400 Bossier City, Public Improvements
Sales & Use Tax, Series ST-1989,
6.88%, 11/1/06, Callable 11/1/99 @
101.5, FGIC........................ 427
400 Bossier City, Public Improvements
Sales & Use Tax, Series ST-1989,
6.88%, 11/1/07, Callable 11/1/99 @
101.5, FGIC........................ 427
550 Bossier City, Public Improvements
Sales & Use Tax, Series ST-1989,
6.88%, 11/1/08, Callable 11/1/99 @
101.5, FGIC........................ 586
1,415 Caddo Parish, GO, 5.25%, 2/1/06,
Callable 2/1/05 @ 100, MBIA........ 1,492
750 Caddo Parish, GO, 5.25%, 2/1/08,
Callable 2/1/05 @ 100, MBIA........ 783
470 Caddo Parish, Industrial Development
Board, Wal-Mart Stores, Inc.
Project, 5.95%, 11/1/07, Callable
5/1/98 @ 101.5..................... 479
500 Calcasieu Parish, School District
#22, Ward 3, Series A, GO, 7.10%,
2/1/01, Callable 2/1/99 @ 100,
BIG................................ 517
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,500 De Soto Parish, Pollution Control
Revenue, International Paper Co.
Project--Series A, 5.05%,
12/1/02............................ $ 1,570
910 East Baton Rouge Parish, Sales & Use
Tax, 5.80%, 2/1/09, Callable 2/1/05
@ 101.5, FGIC...................... 990
2,280 East Baton Rouge Parish, Sales & Use
Tax, Series A, 8.00%, 2/1/02,
FGIC............................... 2,608
1,085 East Baton Rouge Parish, Sales & Use
Tax, Series ST, 5.15%, 2/1/05,
Callable 2/1/03 @ 101.5............ 1,133
500 East Baton Rouge Parish, Sales & Use
Tax, Series ST, 5.80%, 2/1/07,
Callable 2/1/05 @ 101.5, FGIC...... 547
1,000 East Baton Rouge Parish, Sales & Use
Tax, Series ST, 5.10%, 2/1/07,
Callable 2/1/06 @ 101.5, FGIC...... 1,050
845 East Baton Rouge Parish, Sales & Use
Tax, Series ST, 5.80%, 2/1/08,
Callable 2/1/05 @ 101.5, FGIC...... 921
1,280 East Baton Rouge, Mortgage Finance
Authority, Single Family Mortgage,
Series B, 5.45%, 10/1/03, GNMA..... 1,323
500 East Baton Rouge, Parish Sales & Use
Tax, 7.10%, 2/1/00, Callable 2/1/99
@ 101.5, MBIA...................... 525
1,560 Houma Utilities Revenue, 6.13%,
1/1/07, Callable 1/1/02 @ 102,
FGIC............................... 1,692
490 Housing Finance Agency, Mortgage
Revenue, Series D-2, AMT, 6.10%,
12/1/11, Callable 12/1/06 @ 102.... 524
575 Housing Finance Agency, Mortgage
Revenue, Single Family A-1, 5.70%,
6/1/15, Callable 6/1/05 @ 102...... 595
1,185 Iberia Home Mortgage Authority,
Single Family Mortgage Revenue,
7.38%, 1/1/11, Callable 7/1/03 @
103................................ 1,288
400 Jefferson Parish, Construction
Waterworks, Revenue, District #2,
7.25%, 1/15/00, Callable 1/15/98
@ 100.............................. 407
1,680 Jefferson Parish, Drain Sales Tax
Revenue, 6.50%, 11/1/06, Callable
11/1/01 @ 100, AMBAC............... 1,822
290 Jefferson Parish, Home Mortgage
Authority, Single Family Mortgage
Revenue, Sub-Series B, 4.50%,
6/1/13, Callable 12/1/03 @ 102..... 293
500 Jefferson Parish, School Board Sales
& Use Tax Revenue, 6.05%, 2/1/02,
MBIA............................... 537
</TABLE>
Continued
47
<PAGE> 50
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Louisiana Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,100 Jefferson Parish, School Board Sales
& Use Tax Revenue, 6.15%, 2/1/03,
Callable 2/1/02 @ 102, MBIA........ $ 1,200
5,760 Jefferson Parish, School Board Sales
& Use Tax Revenue, 6.25%, 2/1/08,
Callable 2/1/02 @ 102, MBIA........ 6,277
4,670 Jefferson, Sales Tax District
Special, Tax Revenue, Series A,
6.75%, 12/1/06, Callable 12/1/02 @
100, FGIC.......................... 5,176
755 Kenner, Sales & Use Tax Revenue,
5.75%, 6/1/06, Callable 6/1/02 @
103, FGIC.......................... 813
1,525 La Foursche Parish Louisiana School
District #1 Parish Wide, GO, 5.00%,
2/1/13, Callable 2/1/08 @ 100,
FSA................................ 1,536
1,000 Lafayette Parish, GO, 7.80%, 3/1/01,
Callable 3/1/98 @ 102, FGIC........ 1,026
750 Lafourche Parish, Hospital Service,
District #3, Hospital Revenue,
5.50%, 10/1/04, Callable 10/1/03 @
102................................ 784
650 Lafourche Parish, Water District #1,
Water Revenue, 5.63%, 1/1/01....... 676
500 Lincoln Parish, School District #1,
GO, Ruston, 6.20%, 3/1/03, Callable
3/1/01 @ 100, MBIA................. 530
1,465 Lincoln Parish, School District #1,
GO, Ruston, 6.40%, 3/1/05, Callable
3/1/01 @ 100, MBIA................. 1,562
1,000 Louisiana State University &
Agriculture & Mechanical College,
University Revenues, 6.00%, 7/1/07,
Callable 7/1/06 @ 102, MBIA........ 1,121
1,120 Louisiana State University &
Agriculture & Mechanical College,
University Revenues, 5.50%, 7/1/13,
Callable 7/1/06 @ 102, MBIA........ 1,182
1,220 Monroe Parish, Special School
District, GO, 8.00%, 3/1/01,
MBIA............................... 1,363
1,300 Monroe Parish, Special School
District, GO, 7.00%, 3/1/02,
MBIA............................... 1,442
1,390 Monroe Parish, Special School
District, GO, 7.00%, 3/1/03,
MBIA............................... 1,570
1,230 Monroe Parish, Special School
District, GO, 5.35%, 3/1/05,
FGIC............................... 1,309
1,320 Monroe Parish, Special School
District, GO, 5.35%, 3/1/06,
Callable 3/1/05 @ 100, FGIC........ 1,400
1,000 New Orleans Audubon Park, Revenue,
5.00%, 4/1/12, Callable 4/1/07 @
101, MBIA.......................... 1,004
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,000 New Orleans, GO, 5.88%, 10/1/11,
Callable 10/1/05 @ 101, AMBAC...... $ 1,090
3,250 New Orleans, GO, 0.00%, 9/1/17,
AMBAC.............................. 1,200
550 New Orleans, GO, Public Improvement,
Revenue, 5.85%, 11/1/07, Callable
11/1/05 @ 100, FGIC................ 599
1,235 New Orleans, GO, Public Improvement,
Series A, 5.00%, 12/1/13, Callable
12/1/07 @ 100, AMBAC............... 1,238
1,000 Orleans Parish School District, GO,
5.13%, 9/1/13, Callable 3/1/08 @
100, MBIA.......................... 1,016
1,000 Ouachita Parish, Hospital Service
District #1, Glenwood Regional
Medical Center, 5.70%, 5/15/16,
Callable 5/15/10 @ 100, FSA........ 1,066
2,525 Ouachita Parish, Hospital Service
District #1, Glenwood Regional
Medical Center, Health Care
Revenue, 7.50%, 7/1/06, Callable
7/1/01 @ 102....................... 2,839
1,655 Ouachita Parish, West School
District, Series A, GO, 6.70%,
3/1/06, Callable 3/1/01 @ 102,
FSA................................ 1,811
2,000 Ouachita Parish, West School
District, Series A, Revenue, 6.50%,
3/1/03, Callable 3/1/01 @ 102,
FSA................................ 2,177
1,440 Plaquemines Parish, GO, 6.40%,
8/1/04, Callable 8/1/01 @ 102,
AMBAC.............................. 1,570
420 Plaquemines Parish, Sales & Use Tax,
6.70%, 12/1/08, Callable 12/1/01 @
102................................ 457
410 Plaquemines Parish, Sales & Use Tax,
6.70%, 12/1/09, Callable 12/1/01 @
102................................ 446
605 Plaquemines Parish, School Board,
Sales & Use Tax, 6.65%, 3/1/05,
Callable 3/1/02 @ 102.............. 667
2,180 Public Facilities Authority Revenue,
Alton Ochsner Medical Foundation,
Series A, 6.30%, 5/15/04, Callable
5/15/02 @102, MBIA................. 2,388
1,000 Public Facilities Authority Revenue,
Alton Ochsner Medical Project,
Series B, 5.75%, 5/15/11, Callable:
5/15/02 @ 100, MBIA................ 1,048
1,000 Public Facilities Authority Revenue,
Indexed Caps, 5.88%, 2/15/11,
Callable 2/15/03 @ 102, FGIC....... 1,071
1,000 Public Facilities Authority Revenue,
Lafayette General Medical Center
Project, Hospital Revenue, 6.05%,
10/1/04, Callable 10/1/02 @ 102,
FSA................................ 1,089
</TABLE>
Continued
48
<PAGE> 51
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Louisiana Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,960 Public Facilities Authority Revenue,
Loyola University, 6.60%, 4/1/05,
Callable 4/1/02 @ 102.............. $ 2,164
2,525 Public Facilities Authority Revenue,
Loyola University Project, 5.63%,
10/1/10, Callable 10/1/07 @ 102,
MBIA............................... 2,749
500 Public Facilities Authority Revenue,
Loyola University Project, Series
A, 7.20%, 10/1/00, Callable 10/1/99
@ 102.............................. 537
1,135 Public Facilities Authority Revenue,
Mary Bird Perkins Cancer Center,
5.50%, 1/1/04, FSA................. 1,206
5,000 Public Facilities Authority Revenue,
Multi-Family, Series A, 0.00%,
2/1/20, ETM........................ 1,553
500 Public Facilities Authority Revenue,
Our Lady of Lake Regional, Series
C, Healthcare Revenue, 5.70%,
12/1/04, Callable 12/1/01 @ 102,
MBIA............................... 532
7,500 Public Facilities Authority Revenue,
Series B, 0.00%, 12/1/19, ETM...... 2,350
110 Public Facilities Authority Revenue,
Sisters of Mercy, 7.38%, 6/1/09,
Callable 6/1/99 @ 102.............. 117
2,145 Public Facilities Authority Revenue,
Tulane University, 6.25%, 7/15/06,
Callable 7/15/01 @ 102............. 2,316
735 Public Facilities Authority Revenue,
Tulane University, 5.55%, 10/1/07,
Callable 10/1/06 @ 102, AMBAC...... 800
1,605 Public Facilities Authority Revenue,
Tulane University, 5.75%, 10/1/09,
Callable 10/1/06 @ 102, AMBAC...... 1,767
300 Public Facilities Authority Revenue,
Tulane University, Series A, 7.50%,
5/15/00, Callable 5/15/98 @ 102.... 310
225 Public Facilities Authority Revenue,
Tulane University, Series A1,
5.80%, 2/15/04, Callable 2/15/03 @
102, FGIC.......................... 243
1,235 Public Facilities Authority Revenue,
Womens Hospital Foundation,
Healthcare Revenue, 6.85%, 10/1/05,
Callable 10/1/02 @ 102............. 1,390
730 Public Facilities Authority Revenue,
Womens Hospital Foundation,
Healthcare Revenue, 5.40%, 10/1/05,
Callable 10/1/04 @ 102, FGIC....... 776
1,715 Public Facilities Authority Revenue,
Womens Hospital Foundation,
Healthcare Revenue, 5.50%, 10/1/06,
Callable 10/1/04 @ 102, FGIC....... 1,840
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 500 Public Facilities Authority Revenue,
Womens Hospital Foundation,
Healthcare Revenue, 6.00%, 10/1/10,
FSA................................ $ 567
2,000 Public Facilities Authority Revenue,
Xavier University, 5.13%, 9/1/12,
Callable 9/1/07 @ 102, MBIA........ 2,051
500 Rapides Parish, Consolidated School
District #62, GO, 7.25%, 4/1/00,
Callable 4/1/99 @ 100, MBIA........ 521
1,475 Rapides Parish, School District #11,
Rigolette--Series 1990, GO, 6.95%,
2/1/02, Callable 2/1/00 @ 100,
FGIC............................... 1,559
2,350 Saint Charles Parish, School District
#1, GO, 6.45%, 3/1/06, Callable
3/1/02 @ 100, AMBAC................ 2,543
480 Shreveport, GO, 6.20%, 3/1/02,
Callable 3/1/01 @ 100, AMBAC....... 509
500 Shreveport, GO, 6.70%, 2/1/03,
Prerefunded 2/1/00 @ 100, AMBAC.... 527
480 Shreveport, GO, 5.90%, 2/1/07,
Callable 2/1/03 @ 100.............. 511
930 Shreveport, Water & Sewer Revenue,
Series A, 7.75%, 12/1/02, FGIC..... 1,078
500 Shreveport, Water & Sewer Revenue,
Series A, 6.25%, 12/1/03, FGIC..... 553
1,000 South Port Community, Port Revenue,
Cargill, Inc. Project, 5.85%,
4/1/17, Callable 4/1/07 @ 102...... 1,056
750 St. Charles Parish, Public
Improvements Sales Tax,, 6.60%,
11/1/07, Callable 11/1/99 @ 102.... 795
870 St. John Baptist Parish, School
District #1, GO, 6.25%, 3/1/05,
Callable 3/1/02 @ 100.............. 928
1,815 St. Tammany Parish, Hospital Service,
District #1, Hospital Revenue,
6.30%, 7/1/07, Callable 7/1/02 @
102................................ 1,958
1,000 St. Tammany Parish, Sales & Use Tax,
District #3, Series A, 6.50%,
12/1/02, Callable 12/1/99 @ 102,
FGIC............................... 1,064
750 St. Tammany Parish, Sales & Use Tax,
District #3, Series A, 6.50%,
12/1/05, Callable 12/1/99 @ 102,
FGIC............................... 798
400 St. Tammany Parish, School District
#12, GO, 6.50%, 3/1/04, Callable
3/1/01 @ 100, FGIC................. 428
</TABLE>
Continued
49
<PAGE> 52
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Louisiana Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,665 Stadium & Exposition District, Hotel
Occupancy, Tax & Stadium Revenue,
5.65%, 7/1/07, Callable 7/1/04 @
102, FGIC.......................... $ 1,805
2,600 State Energy & Power Authority, Power
Project Revenue, Rodemacher Unit
#2, 6.75%, 1/1/08, Callable 1/1/01
@ 102, FGIC........................ 2,836
1,500 State Gas & Fuels Tax Revenue, Series
A, 7.25%, 11/15/04, Callable
11/15/99 @ 102..................... 1,607
2,750 State GO, 7.10%, 9/1/03, Callable
9/1/00 @ 102, FSA.................. 3,007
4,000 State GO, Series A, 6.00%, 8/1/04,
FGIC............................... 4,388
3,000 State GO, Series A, 6.50%, 4/15/06,
FGIC............................... 3,432
430 State GO, Series A, 6.00%, 5/1/08,
Callable 5/1/04 @ 102, AMBAC....... 473
2,875 State GO, Series A, 5.80%, 08/1/10,
MBIA............................... 3,203
500 State GO, Series A, 6.10%, 5/1/11,
Callable 5/1/04 @ 102, AMBAC....... 551
3,000 State GO, Series B, 5.63%, 8/1/13,
MBIA............................... 3,262
500 State Offshore Terminal Authority,
Deepwater Port Revenue, 1st Stage,
Series B, 6.10%, 9/1/02............ 534
1,325 State Offshore Terminal Authority,
Deepwater Port Revenue, 1st Stage,
Series B, 6.25%, 9/1/04............ 1,445
1,435 Tangipahoa Parish, Consolidated
School District #1, GO, 6.15%,
12/1/07, Callable 12/1/02 @ 100.... 1,544
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Louisiana, continued:
$ 1,250 Tangipahoa Parish, Hospital Service
District #1, Hospital Revenue,
6.13%, 2/1/14, Callable 2/1/04 @
102, AMBAC......................... $ 1,362
1,285 Terrebonne Parish, Hospital Service
District #1, Hospital Revenue,
Terrebonne General Medical Center
Project, 7.40%, 4/1/03, Callable
4/1/98 @ 102, BIG.................. 1,322
690 Terrebonne Parish, Waterworks
District #1, Water Revenue, 5.70%,
11/1/06, Callable 11/1/03 @ 102,
FGIC............................... 746
500 Terrebonne Parish, Waterworks
District #1, Water Revenue, 5.75%,
11/1/08, Callable 11/1/03 @ 102,
FGIC............................... 539
555 Vermilion Parish, Hospital Service,
District #2, Health Care Revenue,
Series A, 6.35%, 5/1/00, MBIA...... 584
--------
Total Municipal Bonds 156,508
--------
INVESTMENT COMPANIES (0.1%):
224 The One Group Municipal Money Market
Fund, Fiduciary Class.............. 224
--------
Total Investment Companies 224
--------
Total (Cost $147,591) (a) $156,732
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $155,950.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $9,141
Unrealized depreciation..................................... --
------
Net unrealized appreciation................................. $9,141
======
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
BIG Insured by Bond Insurance Guarantee
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FSA Insured by Federal Security Assurance
GNMA Insured by Government National Mortgage Association
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
See notes to financial statements.
50
<PAGE> 53
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (99.0%):
Arizona (0.4%):
$ 1,000 Maricopa County, Individual
Development Single Family
Mortgage, Revenue, 0.00%,
12/31/14, ETM.................... $ 424
--------
Hawaii (0.4%):
400 State GO, Series B, 8.13%,
2/1/00........................... 433
--------
Ohio (0.8%):
500 Columbus, GO, 8.13%, 5/1/04........ 608
250 Public Community Facilities, Higher
Education Cap, Revenue, Series
II-B, 5.38%, 11/1/00, AMBAC...... 259
--------
867
--------
Puerto Rico (1.1%):
1,000 Puerto Rico Industrial Tourist
Educational, Medical and
Environmental Control Facilities,
Auxilio Mutuo Hospital Obligation
Group, Revenue, 5.80%, 7/1/06,
Callable 1/1/05 @ 102, MBIA...... 1,105
--------
Rhode Island (0.2%):
200 State Construction Capital
Development, GO, Series B, 6.00%,
5/15/98.......................... 202
--------
Virginia (0.2%):
200 State Public School Authority
Revenue, Series A, 6.30%,
8/1/01........................... 214
--------
West Virginia (95.9%):
170 Bath & Waterworks Revenue, 5.80%,
9/1/19, Callable 9/1/07 @ 102.... 173
200 Berkeley County, Building
Community, Hospital Revenue, City
Hospital Project, 5.40%,
11/1/98.......................... 202
1,000 Berkeley County, Building
Community, Hospital Revenue, City
Hospital Project, 6.50%, 11/1/09,
Callable 11/1/02 @ 102........... 1,077
1,000 Berkeley County, Education Board,
GO, 5.50%, 4/1/01................ 1,043
800 Berkeley County, Education Board,
GO, 5.55%, 4/1/02................ 842
900 Berkeley County, Education Board,
GO, 5.60%, 4/1/03................ 957
500 Berkeley County, Education Board,
GO, 5.00%, 6/1/08, Callable
6/1/05 @ 100, FGIC............... 516
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 1,525 Brooke Pleasants Tyler Wetzed
Counties, Single Family Mortgage
Revenue, 7.40%, 8/15/10, ETM..... $ 1,906
225 Cabell County, Education Board, GO,
6.10%, 5/1/99, MBIA.............. 232
150 Cabell County, Education Board, GO,
6.20%, 5/1/00, MBIA.............. 157
1,670 Cabell County, Education Board, GO,
6.60%, 5/1/04, MBIA.............. 1,883
1,500 Cabell County, Education Board, GO,
6.00%, 5/1/06, MBIA.............. 1,668
85 Charles Town Residential Mortgage,
Revenue, Series A, 5.40%,
9/1/02........................... 89
85 Charles Town Residential Mortgage,
Revenue, Series A, 5.55%,
3/1/03........................... 89
85 Charles Town Residential Mortgage,
Revenue, Series A, 5.70%, 9/1/04,
Callable 3/1/03 @ 102............ 90
1,555 Charleston Building Community,
Parking Facility Revenue, Capital
Appreciation, 0.00%, 12/1/17..... 486
1,570 Charleston Building Community,
Parking Facility Revenue, Capital
Appreciation, 0.00%, 12/1/18..... 458
1,570 Charleston Building Community,
Parking Facility Revenue, Capital
Appreciation, 0.00%, 12/1/19..... 427
1,010 Charleston Parking Revenue, Series
B, 6.75%, 6/1/08, Callable
12/1/04 @ 102.................... 1,159
790 Fairmont Waterworks, Revenue,
5.30%, 7/1/09, Callable 7/1/07 @
102, MBIA........................ 840
925 Fairmont Waterworks, Revenue,
5.50%, 7/1/12, Callable 7/1/07 @
102, MBIA........................ 985
2,500 Harrison County, Board of
Education, GO, 6.40%, 5/1/07,
FGIC............................. 2,880
2,000 Harrison County, Community Special
Obligation, Revenue, Series A,
6.25%, 5/15/10, ETM.............. 2,310
1,500 Harrison County, Education Board,
GO, 6.30%, 5/1/05, FGIC.......... 1,691
95 Huntington Residential Mortgage
Revenue, 6.30%, 9/1/98........... 97
735 Jackson County, Residential
Mortgage Revenue, 7.38%, 6/1/10,
FGIC, ETM........................ 915
</TABLE>
Continued
51
<PAGE> 54
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 1,000 Kanawha County, Community Building
Revenue, Charleston Hospital,
7.50%, 11/1/08, Prerefunded
11/1/99 @ 102, AMBAC............. $ 1,080
3,910 Kanawha Mercer Nicholas Counties,
Single Family Mortgage Revenue,
0.00%, 2/1/15, Prerefunded 2/1/14
@ 89.8........................... 1,547
4,435 Kanawha-Putnam County, Single
Family Mortgage Revenue, Series
A, 0.00%, 12/1/16, AMBAC, ETM.... 1,675
1,682 Keyser Housing Corp. Mortgage
Revenue, 7.25%, 4/1/21, Callable
1/17/98 @ 101.5, FHA............. 1,701
265 Marion County, Single Family
Mortgage Revenue, 7.05%, 8/1/98,
FGIC, ETM........................ 270
1,065 Marion County, Single Family
Mortgage Revenue, 7.38%, 8/1/11,
FGIC, ETM........................ 1,304
500 Marshall County, Special
Obligation, Revenue, 6.50%,
5/15/10, ETM..................... 580
1,000 Monongalia County, Board of
Education, GO, 7.00%, 4/1/03,
MBIA............................. 1,133
440 Monongalia County, Board of
Education, GO, 7.00%, 4/1/04,
MBIA............................. 507
300 Monongalia County, Board of
Education, GO, 7.00%, 4/1/05,
MBIA............................. 351
1,000 Monongalia County, Building
Community, Healthcare Revenue,
5.75%, 11/15/14, Callable
11/15/02 @ 102................... 1,003
1,000 Ohio County Board of Education, GO,
5.00%, 6/1/13, Callable 6/1/08 @
102.............................. 995
900 Parkersburg Waterworks & Sewer
Revenue Bond, 5.70%, 9/1/13,
Callable 9/1/06 @ 102, FSA....... 975
1,295 Parkersburg Waterworks & Sewer
System Revenue, 5.50%, 3/1/10,
Callable 9/1/06 @ 102, FSA....... 1,393
1,335 Parkersburg Waterworks & Sewer
System Revenue, 5.50%, 9/1/10,
Callable 9/1/06 @ 102, FSA....... 1,436
2,610 Pleasants County, Pollution Control
Revenue, Monongahela Power,
6.38%, 11/1/07, Callable 1/17/98
@ 100............................ 2,613
1,000 Pleasants County, Pollution Control
Revenue, Potomac Power, 6.15%,
5/1/15, Callable 5/1/05 @ 102,
MBIA............................. 1,098
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 1,000 Pleasants County, Pollution Control
Revenue, Potomac Power, 6.15%,
5/1/15, Callable 5/1/05 @ 102,
AMBAC............................ $ 1,098
1,750 Pleasants County, Pollution Control
Revenue, West Penn Power, 6.15%,
5/1/15, Callable 5/1/05 @ 102,
AMBAC............................ 1,921
1,015 Putnam County Pollution Control
Revenue, FMC Corp., 5.625%,
10/1/13, Callable 10/1/07 @
102.............................. 1,037
1,500 School Building Authority Revenue
Capital Improvement, 5.25%,
7/1/99, MBIA..................... 1,530
1,750 School Building Authority Revenue
Capital Improvement, 6.25%,
7/1/01, MBIA..................... 1,879
1,000 School Building Authority Revenue
Capital Improvement, 5.50%,
7/1/11, Callable 7/1/07 @ 102,
AMBAC............................ 1,068
800 School Building Authority Revenue
Capital Improvement, Series B,
6.80%, 7/1/00, MBIA.............. 854
1,000 School Building Authority Revenue
Capital Improvement, Series B,
6.90%, 7/1/02, Callable 7/1/00 @
102, MBIA........................ 1,086
500 School Building Authority Revenue
Capital Improvement, Series B,
6.95%, 7/1/03, Prerefunded 7/1/00
@ 102, MBIA...................... 544
200 School Building Authority Revenue
Capital Improvement, Series B,
6.75%, 7/1/06, MBIA.............. 234
1,000 School Building Authority Revenue
Capital Improvement, Series B,
6.00%, 7/1/12, Callable 7/1/02 @
100, MBIA........................ 1,066
500 State Building Common Lease
Revenue, 6.70%, 7/1/02, Callable
7/1/00 @ 102, MBIA............... 540
1,000 State Building, Lottery Commission
Revenue, Series A, 5.25%, 7/1/08,
Callable 7/1/07 @ 102, MBIA...... 1,057
</TABLE>
Continued
52
<PAGE> 55
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 1,000 State Building, Lottery Commission
Revenue, Series A, 5.25%, 7/1/09,
Callable 7/1/07 @ 102, MBIA...... $ 1,053
250 State GO, 5.25%, 3/1/01, Callable
1/17/98 @ 100.................... 250
200 State GO, 5.70%, 6/1/01, Callable
6/1/98 @ 100..................... 201
1,200 State GO, 6.10%, 6/1/03, Callable
1/17/98 @ 101.................... 1,214
250 State GO, Series A, 5.20%,
2/1/99........................... 254
300 State GO, Series A, 5.30%,
2/1/00........................... 308
600 State GO, Series A, 5.40%,
2/1/01........................... 624
2,500 State GO, Series A, 5.50%,
2/1/02........................... 2,631
1,000 State GO, Series B, AMT, 5.80%,
11/1/11, Callable 11/1/06 @ 102,
FGIC............................. 1,103
1,000 State GO, Series B, AMT, 5.85%,
11/1/12, Callable 11/1/06 @ 102,
FGIC............................. 1,102
1,075 State Hospital Finance Authority,
4.50%, 8/1/05, FSA............... 1,083
1,250 State Hospital Finance Authority,
5.00%, 8/1/09,, Callable 8/1/07 @
100, FSA......................... 1,279
1,000 State Hospital Finance Authority,
5.75%, 9/1/13, Callable 9/1/05 @
102, MBIA........................ 1,080
100 State Hospital Finance Authority,
Hospital Revenue, 6.80%, 8/1/98,
FSA.............................. 102
625 State Hospital Finance Authority,
Hospital Revenue, 5.50%, 1/1/02,
MBIA............................. 656
500 State Hospital Finance Authority,
Hospital Revenue, 5.70%, 1/1/04,
Callable 1/1/02 @ 102, MBIA...... 534
500 State Hospital Finance Authority,
Hospital Revenue, 7.00%, 8/1/04,
Callable 8/1/99 @ 102, FSA....... 533
2,350 State Hospital Finance Authority,
Hospital Revenue, 5.10%, 6/1/06,
Callable 6/1/03 @ 102, MBIA...... 2,452
1,000 State Hospital Finance Authority,
Hospital Revenue, 5.13%, 9/1/06,
Callable 9/1/05 @102, MBIA....... 1,051
1,000 State Hospital Finance Authority,
Hospital Revenue, 7.00%, 8/1/09,
Callable 8/1/99 @ 102, FSA....... 1,065
140 State Housing Development, 5.50%,
11/1/98, FHA..................... 142
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 450 State Housing Development, 7.00%,
5/1/99, Callable 1/3/98 @ 102,
FHA.............................. $ 460
190 State Housing Development, 6.30%,
11/1/03, Callable 5/1/02 @ 103,
FHA.............................. 204
195 State Housing Development, 6.40%,
5/1/04, Callable 5/1/02 @ 103,
FHA.............................. 211
205 State Housing Development, 6.40%,
11/1/04, Callable 5/1/02 @ 103,
FHA.............................. 222
500 State Housing Development, 7.38%,
11/1/05, Callable 1/3/98 @ 102,
FHA.............................. 511
245 State Housing Development, 6.75%,
11/1/10, Callable 5/1/02 @ 103,
FHA.............................. 267
315 State Housing Development, 6.75%,
5/1/11, Callable 5/1/02 @ 103,
FHA.............................. 343
1,000 State Housing Development, 7.40%,
11/1/11, Callable 1/3/98 @ 102,
FHA.............................. 1,022
320 State Housing Development, 6.75%,
11/1/11, Callable 5/1/02 @ 103,
FHA.............................. 348
1,000 State Housing Development, 7.40%,
11/1/13, Callable 1/3/98 @ 102,
FHA.............................. 1,022
500 State Housing Development, 7.40%,
11/1/13, Callable 1/3/98 @ 102,
FHA, AMBAC....................... 511
1,000 State Housing Development, 5.80%,
5/1/17, Callable 5/1/07 @ 102.... 1,043
1,500 State University Revenue, 5.75%,
4/1/03, AMBAC.................... 1,612
1,500 State University Revenue, 5.75%,
4/1/04, Callable 4/1/03 @ 102,
AMBAC............................ 1,626
1,000 State University Revenue, 6.00%,
4/1/07, Callable 4/1/03 @ 102,
AMBAC............................ 1,089
1,000 State University Revenue, 6.00%,
4/1/12, Callable 4/1/03 @ 102,
AMBAC............................ 1,085
130 State Water Development Authority
Revenue, Loan Program II, Series
A, 6.90%, 11/1/01................ 142
</TABLE>
Continued
53
<PAGE> 56
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 160 State Water Development Authority
Revenue, Loan Program II, Series
A, 7.10%, 11/1/04, Callable
11/1/01 @ 102.................... $ 177
2,000 State Water Development Authority
Revenue, Loan Program, Series A,
7.00%, 11/1/11, Callable 11/1/01
@ 102, FSA....................... 2,221
100 State Water Development Authority
Revenue, Series A, 7.30%,
11/1/99.......................... 106
100 State Water Development Authority
Revenue, Series A, 7.40%,
11/1/00.......................... 109
225 University Dormitory Revenue,
Series A, 5.60%, 5/1/99, MBIA.... 230
750 University Revenues, State
University System, Marshall
University Library, 5.60%,
4/1/11, Callable 4/1/06 @ 101,
AMBAC............................ 804
1,000 Weirton Municipal Hospital Building
Community Revenue, 5.10%,
12/1/98, AMBAC................... 1,013
1,270 West Virginia Fairmont General
Hospital, Revenue, 5.15%,
11/1/07.......................... 1,285
655 West Virginia Housing Development,
Series D, AMT, 5.65%, 11/01/15,
Callable 11/01/07 @ 102.......... 673
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
West Virginia, continued:
$ 1,520 West Virginia Single Family
Mortgage Revenue, 5.30%, 8/1/13,
Callable 8/1/07 @ 102,
GNMA/FNMA........................ $ 1,561
1,715 West Virginia University, Revenue,
Series A, 5.30%, 5/1/12, Callable
11/1/07 @ 101, AMBAC............. 1,784
1,125 West Virginia University, Revenue,
Series A, 5.25%, 4/1/13, Callable
4/1/08 @ 102, AMBAC.............. 1,159
1,000 Wheeling Waterworks & Sewer System
Revenue, 5.40%, 6/1/11, Callable
6/1/07 @ 100, FGIC............... 1,048
1,200 Wheeling Waterworks & Sewer System
Revenue, Series C, 6.60%, 6/1/12,
Prerefunded 6/1/02 @ 100, FGIC... 1,317
--------
100,669
--------
Total Municipal Bonds 103,914
--------
INVESTMENT COMPANIES (0.1%):
59 The One Group Municipal Money
Market Fund, Fiduciary Class..... 59
--------
Total Investment Companies 59
--------
Total (Cost $97,190) (a) $103,973
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $104,931.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $6,783
Unrealized depreciation..................................... --
------
Net unrealized appreciation................................. $6,783
======
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FHA Insured by Federal Housing Authority
FSA Insured by Federal Security Assurance
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
See notes to financial statements.
54
<PAGE> 57
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Arizona Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (98.4%):
Arizona (98.4%):
$ 1,175 Apache County, Public Finance
Corp., Certificates of
Participation, 5.25%, 5/1/04,
Callable 5/1/00 @ 102............ $ 1,198
500 Apache County, Public Finance
Corp., Certificates of
Participation, 5.50%, 5/1/10,
Callable 5/1/00 @ 102............ 516
1,000 Arizona State University Revenues
Refunding System, Series A,
5.60%, 7/1/05, Callable 7/1/02 @
101.............................. 1,064
1,000 Arizona State University Revenues
System, 6.90%, 7/1/04, Callable
7/1/02 @ 101, AMBAC.............. 1,112
1,950 Arizona State University Revenues,
Series A, 5.85%, 7/1/08, Callable
7/1/02 @ 101..................... 2,080
1,820 Arizona State University Revenues,
Series A, 5.90%, 7/1/09, Callable
7/1/02 @ 101..................... 1,943
650 Bullhead City, Municipal Property
Corp., Municipal Facilities
Revenue, 7.20%, 7/1/10,
Prerefunded 7/1/00 @ 101, FGIC... 705
725 Casa Grande, Excise Tax Revenue,
5.90%, 4/1/09, Callable 4/1/04 @
100, FGIC........................ 783
750 Central Arizona Water Conservation
District, Contract Revenue,
7.15%, 11/1/99................... 792
4,290 Central Arizona Water Conservation
District, Contract Revenue,
7.00%, 11/1/03, Prerefunded
11/1/00 @ 102.................... 4,702
1,000 Central Arizona Water Conservation
District, Contract Revenue,
7.65%, 11/1/09, Prerefunded
11/1/00 @ 102.................... 1,113
3,300 Central Arizona Water Conservation
District, Contract Revenue,
7.13%, 11/1/11, Prerefunded
11/1/00 @ 102.................... 3,628
2,875 Central Arizona Water Conservation
District, Contract Revenue,
Central Arizona Project, 4.75%,
11/1/07, Callable 5/1/04 @ 102,
MBIA............................. 2,954
1,460 Central Arizona Water Conservation
District, Contract Revenue,
Central Arizona Project--Series
A, 5.20%, 11/1/03................ 1,532
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 4,000 Central Arizona Water Conservation
District, Contract Revenue,
Central Arizona Project--Series
A, 5.40%, 11/1/05................ $ 4,271
4,750 Central Arizona Water Conservation
District, Contract Revenue,
Central Arizona Project--Series
A, 5.40%, 11/1/06................ 5,099
3,000 Central Arizona Water Conservation
District, Contract Revenue,
Series B, Power Sales Co., 6.50%,
11/1/11, Prerefunded 5/1/01 @
102.............................. 3,276
625 Coconino & Yavapai Counties
Arizona, School District #9,
Sedona Oak Creek Project of
1992-C, GO, 5.60%, 7/1/06,
Callable 7/1/02 @ 101, FGIC...... 664
905 Coconino County, Arizona
University, School District #001,
Flagstaff, GO, 5.70%, 7/1/01,
Callable 7/1/00 @ 101, AMBAC..... 950
2,400 Coconino County, Arizona
University, School District #001,
Flagstaff, GO, 5.50%, 7/1/08,
Callable 7/1/05 @ 101, AMBAC..... 2,581
2,500 East Valley Institute of
Technology, District #401,
Project of 1994, Series B, GO,
6.00%, 7/1/05, AMBAC............. 2,767
1,000 East Valley Institute of
Technology, District #401, Series
A, GO, 6.00%, 7/1/04, Callable
7/1/00 @ 101, AMBAC.............. 1,053
2,000 Gila County Arizona Industrial
Development Authority Revenue,
Asarco Inc., 5.55%, 1/1/27,
Callable 1/1/08, @102............ 2,040
1,000 Gilbert Improvement District #011,
GO, 7.60%, 1/1/04, Callable
7/1/98 @ 102.5, FGIC............. 1,044
1,000 Glendale Municipal Property Corp.,
7.00%, 7/1/05, Callable 7/1/99 @
101, MBIA........................ 1,053
1,000 Glendale Municipal Property Corp.,
7.00%, 7/1/09, Callable 7/1/99 @
101, MBIA........................ 1,052
4,000 Glendale University High School,
District #205, Projects of 1993 -
Series A, GO, 5.30%, 7/1/07,
Callable 7/1/03 @ 101............ 4,198
</TABLE>
Continued
55
<PAGE> 58
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Arizona Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 2,900 Glendale University High School,
District #205, Projects of 1993 -
Series B, GO, 5.45%, 7/1/09,
Callable 7/1/05 @ 101, FGIC...... $ 3,094
2,000 Glendale, GO, 5.05%, 7/1/02,
FGIC............................. 2,081
2,000 Maricopa County, Community College
District, 5.00%, 7/1/13, Callable
7/1/06 @ 101..................... 2,023
1,570 Maricopa County, Community College
District, Building Revenue,
5.10%, 7/15/05, MBIA............. 1,657
1,000 Maricopa County, Community College
District, Series A, 6.00%,
7/1/07, Callable 7/1/03 @ 101.... 1,086
500 Maricopa County, Industrial
Development Authority, Hospital
Facility Revenue, St. Joseph's
Hospital & Medical Centers
Project, 6.20%, 11/1/11, Putable
11/1/98 @ 100, ETM............... 501
1,000 Maricopa County, School District
#001, Phoenix Elementary, GO,
5.50%, 7/1/10, Callable 7/1/07 @
101, MBIA........................ 1,077
850 Maricopa County, School District
#006, Washington Elementary,
Series A, GO, 5.75%, 7/1/05,
Callable 7/1/02 @ 101, AMBAC..... 909
900 Maricopa County, School District
#006, Washington Elementary,
Series A, GO, 5.75%, 7/1/06,
Callable 7/1/02 @ 101, AMBAC..... 961
2,000 Maricopa County, School District
#038, Madison Elementary Project
of 1995--Series B, GO, 5.80%,
7/1/15, Callable 7/1/06 @ 101,
MBIA............................. 2,159
1,015 Maricopa County, School District
#038, Madison Elementary, GO,
5.30%, 7/1/08, Callable 7/1/03 @
101, AMBAC....................... 1,065
1,000 Maricopa County, School District
#097, Deer Valley Project of
1986--Series F, GO, 5.90%,
7/1/03, Callable 7/1/02 @ 101,
FGIC............................. 1,080
750 Maricopa County, School District
#097, Deer Valley Project of
1996--Series C, GO, 5.35%,
7/1/09, Callable 7/1/07 @ 100,
FSA.............................. 795
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 2,000 Maricopa County, School District
#11, 5.00%, 7/1/09, Callable
7/1/07 @ 101, AMBAC.............. $ 2,074
2,000 Maricopa County, School District
#210, Phoenix, GO, 5.25%, 7/1/04,
Callable 7/1/03 @ 101............ 2,120
2,000 Maricopa County, School District
#210, Project of 1995--Series B,
GO, 5.38%, 7/1/13................ 2,075
1,200 Maricopa County, School District
#210, Series A, GO, 5.60%,
7/1/13, Callable 7/1/05 @ 101.... 1,276
2,250 Maricopa County, School District
#210, Series D, GO, 6.70%,
7/1/03, Prerefunded 7/1/01 @
101.............................. 2,458
1,000 Maricopa County, School District
#210, Series E, GO, 7.10%,
7/1/03........................... 1,144
1,250 Maricopa County, School District
#4, GO, 5.25%, 7/1/03, FGIC...... 1,318
2,000 Maricopa County, School District
#4, GO, 5.50%, 7/1/09, Callable
7/1/05 @ 102, FGIC............... 2,154
2,500 Maricopa County, School District
#4, GO, 5.00%, 7/1/10, Callable
7/1/06 @ 101, FGIC............... 2,573
750 Maricopa County, School District
#4, GO, 5.65%, 7/1/11, Callable
7/1/05 @ 102, FGIC............... 811
2,500 Maricopa County, School District
#48, Scottsdale School
Improvements, GO, 5.00%, 7/1/14,
Callable 7/1/04 @ 101............ 2,516
1,000 Maricopa County, School District
#48, Scottsdale, GO, 5.20%,
7/1/06, Callable 7/1/03 @ 101.... 1,052
1,475 Maricopa County, School District
#48, Scottsdale, GO, 4.90%,
7/1/06, Callable 7/1/02 @ 101.... 1,523
1,000 Maricopa County, School District
#48, Scottsdale, GO, 5.25%,
7/1/08, Callable 7/1/03 @ 101.... 1,048
1,500 Maricopa County, School District
#48, Scottsdale, GO, 6.75%,
7/1/09, Prerefunded 7/1/01 @
101.............................. 1,641
2,000 Maricopa County, School District
#48, Scottsdale, Series B, GO,
6.10%, 7/1/02.................... 2,165
1,000 Maricopa County, School District
#48, Scottsdale, Series B, GO,
6.30%, 7/1/04.................... 1,119
</TABLE>
Continued
56
<PAGE> 59
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Arizona Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 3,100 Maricopa County, School District
#69, Paradise Valley, GO, 5.80%,
7/1/09, AMBAC.................... $ 3,466
2,400 Maricopa County, School District
#69, Paradise Valley, GO, 5.00%,
7/1/09, Callable 7/1/03 @ 102,
AMBAC............................ 2,469
1,000 Maricopa County, School District
#69, Paradise Valley, GO, 6.35%,
7/1/10, MBIA..................... 1,171
2,000 Maricopa County, School District
#69, Paradise Valley, Series B,
GO, 6.50%, 7/1/08, Prerefunded
7/1/01 @100...................... 2,155
1,000 Maricopa County, School District
#80, Chandler Projects of 1995 -
Series C, GO, 5.10%, 7/1/08,
FGIC............................. 1,059
1,000 Maricopa County, School District
#80, Chandler, GO, 5.80%, 7/1/08,
Callable 7/1/05 @ 101, FGIC...... 1,095
920 Maricopa County, School District
#9, Wickenburg, GO, 5.50%,
7/1/13, Callable 7/1/07 @ 100,
AMBAC............................ 965
2,345 Mesa Arizona Street & Highway,
5.00%, 7/1/15, Callable 7/1/07 @
100, FGIC........................ 2,355
1,625 Mesa, GO, 6.00%, 7/1/02, AMBAC..... 1,753
1,000 Mesa, GO, 5.70%, 7/1/03, FGIC...... 1,076
725 Mesa, GO, 5.00%, 7/1/03, MBIA...... 755
2,040 Mesa, Project of 1987, GO, 9.00%,
7/1/01, ETM, MBIA................ 2,365
2,000 Mesa, Project of 1987, GO, 5.70%,
7/1/08, Callable 7/1/03 @ 101.5,
MBIA............................. 2,144
2,000 Mesa, Utility System Revenue,
5.38%, 7/1/12, Callable 7/1/05 @
101, FGIC........................ 2,089
1,205 Mojave County, Elementary School
District #16, GO, 5.25%, 7/1/09,
Callable 7/1/07 @ 100, MBIA...... 1,272
1,200 Mojave County, School District # 1,
Lake Havasu, GO, 5.20%, 7/1/09,
Callable 7/1/03 @ 101, AMBAC..... 1,248
2,050 Navajo County School District #10,
5.125%, 7/1/12,, CALLABLE 7/1/07
@ 101, FGIC...................... 2,068
1,000 Northern Arizona University,
Revenues, 7.50%, 6/1/03,
Prerefunded 6/1/99 @ 100......... 1,050
2,750 Northern Arizona University,
Revenues, 6.40%, 6/1/07, Callable
6/1/02 @ 101, FGIC............... 3,001
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 1,215 Northern Arizona University,
Revenues, Series A, 5.60%,
6/1/05, Callable 6/1/02 @ 102,
AMBAC............................ $ 1,299
1,000 Oro Valley Municipal Property
Corp., Municipal Water System
Revenue, Canada Hills, 5.45%,
7/1/14, Callable 7/1/08 @ 101,
MBIA............................. 1,055
2,000 Phoenix Arizona Civic Improvement
Corp. Series B, 6%, 7/1/08,
Callable 7/1/04 @ 102............ 2,205
2,000 Phoenix Civic Improvement Corp.,
Water System Revenue, 5.63%,
7/1/09, Callable 7/1/06 @ 100.... 2,155
725 Phoenix Street & Highway User
Revenue, 6.25%, 7/1/06, Callable
7/1/02 @ 102..................... 793
2,000 Phoenix Street & Highway User
Revenue, 6.50%, 7/1/09, ETM...... 2,256
1,255 Phoenix Street & Highway User
Revenue, Series A, 5.80%, 7/1/05,
Callable 7/1/02 @ 102, FGIC...... 1,353
2,450 Phoenix, GO, 6.38%, 7/1/13,
Callable 7/1/02 @ 102............ 2,698
1,125 Phoenix, GO, Series A, 5.10%,
7/1/04........................... 1,184
2,500 Phoenix, GO, Series A, 5.20%,
7/1/05........................... 2,655
1,000 Phoenix, GO, Series A, 5.40%,
7/1/07........................... 1,083
1,000 Pima County, Arizona College
District, Certificates of
Participation, Series B, 6.00%,
7/1/07, Callable 7/1/01 @ 101,
AMBAC............................ 1,067
725 Pima County, GO, 5.60%, 7/1/07,
Callable 7/1/03 @ 101............ 774
555 Pima County, GO, 6.20%, 7/1/08,
Callable 7/1/02 @ 101............ 602
1,500 Pima County, Industrial Development
Authority, HealthPartners -
Series A, 5.30%, 4/1/07, MBIA.... 1,597
1,000 Pima County, Industrial Development
Authority, Single Family Mortgage
Revenue Refunding, Series B, AMT,
6.15%, 11/1/23, Callable 5/1/07 @
102, GNMA........................ 1,090
1,135 Pima County, Industrial Development
Authority, Single Family Mortgage
Revenue, Series A, 6.40%, 8/1/11,
Callable 8/1/05 @ 102............ 1,210
270 Pima County, Industrial Development
Authority, Single Family Mortgage
Revenue, Series A, 7.63%, 2/1/12,
Callable 2/1/01 @ 101............ 284
</TABLE>
Continued
57
<PAGE> 60
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Arizona Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 1,585 Pima County, Sewer Revenue, Series
A, 4.90%, 7/1/08, Callable 7/1/04
@ 102, FGIC...................... $ 1,631
1,000 Pima County, Union School District
#1, Project of 1989--Series G,
GO, 5.00%, 7/1/06, Callable
7/1/05 @ 101, MBIA............... 1,047
2,205 Pima County, Union School District
#1, Project of 1989--Series G,
GO, 5.00%, 7/1/07, Callable
7/1/05 @ 101, MBIA............... 2,312
1,000 Pima County, Union School District
#1, Series B, GO, 7.20%, 7/1/09,
Prerefunded 7/1/00 @ 101......... 1,084
1,500 Pima County, Union School District
#1, Series C, GO, 6.88%, 7/1/10,
Prerefunded 7/1/01 @ 101, MBIA... 1,649
2,000 Pima County, Union School District
#1, Tucson School Improvements,
Series D, GO, 6.10%, 7/1/11,
Callable 7/1/02 @ 102, FGIC...... 2,192
2,000 Pima County, United School
District, 5.375%, 7/1/09, FGIC... 2,160
1,200 Pinal County, School District #004,
Casa Grande Elementary School
Improvement, GO, 6.00%, 7/1/04,
Callable 7/1/01 @ 101, AMBAC..... 1,291
1,000 Prescott Arizona Property Corp.
Facilities, 5.125%, 1/1/18,
Callable 1/1/08 @ 101, FGIC...... 1,001
2,015 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, 6.00%, 1/1/07........... 2,259
1,270 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series A, 5.40%,
1/1/04........................... 1,351
2,000 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series A, 5.63%,
1/1/06........................... 2,181
1,000 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series A, 6.50%, 1/1/07,
Callable 1/1/01 @ 102............ 1,083
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 2,000 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series A, 5.00%, 1/1/20,
Callable 1/1/08 @ 101............ $ 1,974
5,000 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series B, 5.05%,
1/1/06........................... 5,265
3,250 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series B, 5.20%,
1/1/08........................... 3,463
2,500 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series B, 5.38%, 1/1/09,
Callable 1/1/03 @ 102............ 2,627
3,000 Salt River Project, Arizona
Agriculture, Improvement & Power
District, Electric Systems
Revenue, Series D, 6.00%, 1/1/13,
Callable 1/1/02 @ 102............ 3,202
2,815 Santa Cruz County Industrial
Development, Citizens Utility
Co., 4.75%, 8/1/20............... 2,856
2,085 Scottsdale Municipal Property
Corp., Excise Tax Revenue, 5.38%,
7/1/05........................... 2,233
1,000 Scottsdale Municipal Property
Corp., Lease Revenue, Excise Tax
Revenue, 6.38%, 5/1/05, Callable
11/1/02 @ 100.................... 1,088
1,900 Scottsdale Project of 1989, Series
E, GO, 5.50%, 7/1/14, Callable
7/1/02 @ 101..................... 1,967
1,065 Scottsdale Street & Highway User
Revenue, 5.50%, 7/1/07........... 1,156
2,000 Scottsdale Water & Sewer, A989-
Series D, 5.0%, 7/1/19, Callable
7/1/08 @ 101, FSA................ 1,977
1,700 Scottsdale, GO, 5.25%, 7/1/06...... 1,817
500 Scottsdale, GO, 5.50%, 7/1/09...... 546
850 Scottsdale, GO, 5.00%, 7/1/09,
Callable 7/1/03 @ 101............ 876
1,615 Scottsdale, GO, Series A, 4.80%,
7/1/08, Callable 7/1/03 @ 101.... 1,654
750 Scottsdale, GO, Series B, 6.00%,
7/1/09, Prerefunded 7/1/01 @
101.............................. 802
</TABLE>
Continued
58
<PAGE> 61
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Arizona Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 2,500 State Certificates of
Participation, 6.63%, 9/1/08,
Callable 9/1/01 @ 102, FSA....... $ 2,748
1,000 State Municipal Financing Program,
Certificates of Participation,
Series 20, 7.70%, 8/1/10, ETM,
BIG.............................. 1,262
1,000 State Municipal Financing Program,
Certificates of Participation,
Series 27, 7.00%, 8/1/04,
Callable 8/1/98 @ 101, BIG....... 1,028
1,250 State Power Authority Resource
Revenue, Hoover Uprating Project,
4.80%, 10/1/01, MBIA............. 1,285
2,035 State Power Authority Resource
Revenue, Hoover Uprating Project,
5.40%, 10/1/07, Callable 10/1/03
@ 102, MBIA...................... 2,174
2,000 State Transportation Board Highway
Revenue, 7.00%, 7/1/06,
Prerefunded 7/1/00 @ 101......... 2,160
3,000 State Transportation Board Highway
Revenue, 5.25%, 7/1/07, Callable
7/1/03 @ 102..................... 3,171
1,000 State Transportation Board Highway
Revenue, Sub-Series B, 6.50%,
7/1/08, Prerefunded 7/1/02 @
101.5............................ 1,108
1,635 Tempe, GO, 5.00%, 7/1/10, Callable
7/1/06 @ 101..................... 1,679
1,000 Tempe, GO, Series A, 5.10%,
7/1/05........................... 1,055
580 Tempe, GO, Series B, 6.00%, 7/1/06,
Callable 7/1/02 @ 101............ 624
2,235 Tempe, Union High School District
#213, Project of 1989--Series B,
GO, 5.90%, 7/1/04, Callable
7/1/01 @ 101..................... 2,371
1,000 Tucson Arizona Water System,
5.125%, 7/1/20, Callable 7/1/07 @
100.............................. 999
1,000 Tucson Street & Highway User
Revenue, 5.30%, 7/1/05, Callable
7/1/03 @ 102, MBIA............... 1,065
2,000 Tucson Water Revenue Refunding,
Series A, 5.75%, 7/1/12, Callable
7/1/02 @ 102, MBIA--IBC.......... 2,123
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- ----------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Arizona, continued:
$ 2,500 Tucson, Arizona, 5.00%, 7/1/19,
Callable 7/1/07 @ 100............ $ 2,485
700 University of Arizona, Foundation
Certificates of Participation,
Series 8, 4.90%, 8/1/09, MBIA.... 727
1,000 University of Arizona, University
Revenues, 6.25%, 6/1/11, Callable
6/1/02 @ 102..................... 1,090
2,215 University of Arizona, University
Revenues, Series A, 7.00%,
6/1/10, Prerefunded 6/1/00 @
102.............................. 2,406
1,100 Yavapai County, Industrial
Development Authority, Hospital
Facility Revenue, Yavapai
Regional Medical Center--Series
A, 5.13%, 12/1/13, Callable
6/1/07 @ 102, FSA................ 1,117
1,750 Yuma County, GO, 6.13%, 7/1/12,
Callable 7/1/03 @ 101, AMBAC..... 1,927
1,305 Yuma County, GO, Elementary School
District #1, 5.25%, 7/1/10,
Callable 7/1/07 @ 101, MBIA...... 1,366
1,000 Yuma County, Industrial Development
Authority, Hospital Revenue
Refunding, Yuma Regional Medical
Center, 5.50%, 8/1/09, Callable
8/1/07 @ 102, MBIA............... 1,072
1,000 Yuma County, Municipal Property
Corp. Revenue, Series A, 5.20%,
7/1/09, Callable 7/1/03 @ 101,
AMBAC............................ 1,038
1,575 Yuma County, Union High School,
District #70, GO, 5.00%, 7/1/06,
Callable 7/1/02 @ 101, FGIC...... 1,634
--------
Total Municipal Bonds 255,099
--------
INVESTMENT COMPANIES (0.6%):
1,436 The One Group Municipal Money
Market Fund, Fiduciary Class..... 1,436
--------
Total Investment Companies 1,436
--------
Total (Cost $240,102) (a) $256,535
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $259,014.
Continued
59
<PAGE> 62
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Arizona Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation..................................... $16,433
Unrealized depreciation..................................... 0
-------
Net unrealized appreciation................................. $16,433
=======
AMBAC Insured by AMBAC Indemnity Corp.
BIG Insured by Bond Insurance Guarantee
ETM Escrowed to Maturity
FGIC Insured by Federal Guarantee Insurance Corp.
FSA Insured by Federal Security Assurance
GNMA Insured by Government National Mortgage Association
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
See notes to financial statements.
60
<PAGE> 63
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1997
(Amounts in Thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL KENTUCKY OHIO
TAX-FREE BOND INCOME MUNICIPAL BOND MUNICIPAL BOND
FUND FUND FUND FUND
--------------- ----------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $486,031; $619,344;
$121,005; $164,591; respectively).............. $512,074 $642,464 $129,724 $177,475
Cash............................................. 548 -- 1 --
Interest receivable.............................. 7,196 9,464 2,025 1,889
Receivable for capital shares issued............. 42 836 6 49
Prepaid expenses and other assets................ 88 61 11 47
-------- -------- -------- --------
TOTAL ASSETS..................................... 519,948 652,825 131,767 179,460
-------- -------- -------- --------
LIABILITIES:
Cash overdraft................................... -- -- -- 208
Dividends payable................................ 1,916 2,549 535 749
Payable to brokers for investments purchased..... 29,293 11,171 -- --
Payable for capital shares redeemed.............. 6 216 -- --
Accrued expenses and other payables:
Investment advisory fees..................... 245 229 50 91
Administration fees.......................... 71 87 19 26
12b-1 fees................................... 7 58 5 20
Other........................................ 57 71 9 32
-------- -------- -------- --------
TOTAL LIABILITIES................................ 31,595 14,381 618 1,126
-------- -------- -------- --------
NET ASSETS:
Capital.......................................... 460,863 622,480 124,123 169,497
Undistributed net investment income.............. 234 18 -- 5
Accumulated undistributed net realized gains
(losses) from investment transactions.......... 1,213 (7,174) (1,693) (4,052)
Net unrealized appreciation from investments..... 26,043 23,120 8,719 12,884
-------- -------- -------- --------
NET ASSETS....................................... $488,353 $638,444 $131,149 $178,334
======== ======== ======== ========
NET ASSETS:
Fiduciary.................................... $473,776 $522,135 $122,026 $143,757
Class A...................................... 9,958 70,372 5,890 16,355
Class B...................................... 4,619 45,110 3,233 18,222
Class C...................................... -- 827 -- --
-------- -------- -------- --------
Total........................................ $488,353 $638,444 $131,149 $178,334
======== ======== ======== ========
OUTSTANDING UNITS OF BENEFICIAL INTEREST
(SHARES):
Fiduciary.................................... 42,536 51,788 11,708 12,956
Class A...................................... 895 6,959 565 1,470
Class B...................................... 415 4,477 312 1,626
Class C...................................... -- 82 -- --
-------- -------- -------- --------
Total........................................ 43,846 63,306 12,585 16,052
======== ======== ======== ========
Net Asset Value:
Fiduciary
Offering and redemption price per
share.................................. $ 11.14 $ 10.09 $ 10.42 $ 11.10
======== ======== ======== ========
Class A
Redemption price per share............... $ 11.13 $ 10.11 $ 10.43 $ 11.13
======== ======== ======== ========
Maximum sales charge..................... 4.50% 4.50% 4.50% 4.50%
======== ======== ======== ========
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest
cent).................................. $ 11.65 $ 10.59 $ 10.92 $ 11.65
======== ======== ======== ========
Class B
Offering price per share (a)............. $ 11.15 $ 10.08 $ 10.37 $ 11.20
======== ======== ======== ========
Class C
Offering price per share................. $ -- $ 10.09 $ -- $ --
======== ======== ======== ========
</TABLE>
- ------------
(a) Redemption price per Class B and Class C share varies based on length of
time shares are held.
See notes to financial statements.
61
<PAGE> 64
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1997
(Amounts in Thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
LOUISIANA WEST VIRGINIA ARIZONA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
FUND FUND FUND
---------------- ---------------- ----------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost $147,591; $97,190; $240,102;
respectively)............................................. $156,732 $103,973 $256,535
Interest receivable......................................... 2,683 1,466 5,733
Receivable for capital shares issued........................ 1 -- --
Prepaid expenses and other assets........................... 35 10 18
-------- -------- --------
TOTAL ASSETS................................................ 159,451 105,449 262,286
-------- -------- --------
LIABILITIES:
Dividends payable........................................... 624 435 1,044
Payable to brokers for investments purchased................ 2,734 -- 2,000
Accrued expenses and other payables:
Investment advisory fees................................ 80 40 99
Administration fees..................................... 23 16 41
12b-1 fees.............................................. 18 1 --
Other................................................... 22 26 88
-------- -------- --------
TOTAL LIABILITIES........................................... 3,501 518 3,272
-------- -------- --------
NET ASSETS:
Capital..................................................... 147,152 98,148 241,879
Accumulated undistributed net realized gains (losses) from
investment transactions................................... (343) -- 702
Net unrealized appreciation from investments................ 9,141 6,783 16,433
-------- -------- --------
NET ASSETS.................................................. $155,950 $104,931 $259,014
======== ======== ========
NET ASSETS:
Fiduciary............................................... $102,802 $103,016 $258,078
Class A................................................. 49,075 849 936
Class B................................................. 4,073 1,066 --(b)
-------- -------- --------
Total................................................... $155,950 $104,931 $259,014
======== ======== ========
OUTSTANDING UNITS OF BENEFICIAL INTEREST (SHARES):
Fiduciary............................................... 9,982 10,007 25,308
Class A................................................. 4,767 82 92
Class B................................................. 395 103 --(b)
-------- -------- --------
Total................................................... 15,144 10,192 25,400
======== ======== ========
Net Asset Value:
Fiduciary
Offering and redemption price per share............. $ 10.30 $ 10.29 $ 10.20
======== ======== ========
Class A
Redemption price per share.......................... $ 10.29 $ 10.38 $ 10.12
======== ======== ========
Maximum sales charge................................ 4.50% 4.50% 4.50%
======== ======== ========
Maximum offering price per share (100%/(100%-maximum
sales charge) of net asset value adjusted to
nearest cent)..................................... $ 10.77 $ 10.87 $ 10.60
======== ======== ========
Class B
Offering price per share (a)........................ $ 10.30 $ 10.35 $ 10.21
======== ======== ========
</TABLE>
- ------------
(a) Redemption price per Class B share varies based on length of time shares are
held.
(b) Amount is less than $1,000.
See notes to financial statements.
62
<PAGE> 65
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL KENTUCKY OHIO
TAX-FREE BOND INCOME MUNICIPAL BOND MUNICIPAL BOND
FUND FUND FUND FUND
-------------- ---------- ---------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................ $12,785 $15,435 $3,559 $4,826
Dividend income........................ 60 62 26 43
------- ------- ------ ------
Total Income........................... 12,845 15,497 3,585 4,869
------- ------- ------ ------
EXPENSES:
Investment advisory fees............... 1,445 1,223 289 516
Administration fees.................... 396 447 105 141
12b-1 fees (Class A)................... 17 97 10 28
12b-1 fees (Class B)................... 21 205 14 81
12b-1 fees (Class C)................... -- 1 -- --
Custodian and accounting fees.......... 30 39 13 11
Legal and audit fees................... 6 8 -- 2
Trustees' fees and expenses............ 3 5 1 1
Transfer agent fees.................... 23 27 15 23
Registration and filing fees........... 46 47 16 17
Printing costs......................... 5 14 1 3
Other.................................. 1 1 1 1
------- ------- ------ ------
Total expenses before waivers.......... 1,993 2,114 465 824
Less waivers........................... (513) (320) (62) (270)
------- ------- ------ ------
Net Expenses........................... 1,480 1,794 403 554
------- ------- ------ ------
Net Investment Income.................. 11,365 13,703 3,182 4,315
------- ------- ------ ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions.............. 2,810 1,435 106 89
Net change in unrealized appreciation
(depreciation) from investments...... 9,935 11,621 2,607 3,389
------- ------- ------ ------
Net realized/unrealized gains from
investments.......................... 12,745 13,056 2,713 3,478
------- ------- ------ ------
Change in net assets resulting from
operations........................... $24,110 $26,759 $5,895 $7,793
======= ======= ====== ======
</TABLE>
See notes to financial statements.
63
<PAGE> 66
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
LOUISIANA WEST VIRGINIA ARIZONA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
FUND FUND FUND
---------------- ---------------- ----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................ $4,357 $2,792 $ 7,058
Dividend income................................ 5 22 31
------ ------ -------
Total Income................................... 4,362 2,814 7,089
------ ------ -------
EXPENSES:
Investment advisory fees....................... 480 229 587
Administration fees............................ 131 83 214
12b-1 fees (Class A)........................... 87 1 2
12b-1 fees (Class B)........................... 20 4 --
Custodian and accounting fees.................. 6 16 28
Legal and audit fees........................... 3 1 5
Trustees' fees and expenses.................... 1 -- 2
Transfer agent fees............................ 19 27 36
Registration and filing fees................... 9 16 24
Printing costs................................. 12 1 5
Other.......................................... -- 2 6
------ ------ -------
Total expenses before waivers.................. 768 380 909
Less waivers................................... (211) (73) (132)
------ ------ -------
Net Expenses................................... 557 307 777
------ ------ -------
Net Investment Income.......................... 3,805 2,507 6,312
------ ------ -------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment
transactions................................. 332 61 1,540
Net change in unrealized appreciation
(depreciation) from investments.............. 2,791 2,270 3,804
------ ------ -------
Net realized/unrealized gains from
investments.................................. 3,123 2,331 5,344
------ ------ -------
Change in net assets resulting from
operations................................... $6,928 $4,838 $11,656
====== ====== =======
</TABLE>
See notes to financial statements.
64
<PAGE> 67
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL KENTUCKY
TAX-FREE BOND INCOME MUNICIPAL BOND
FUND FUND FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997
-------- -------- -------- -------- -------- --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income....................... $ 11,365 $ 16,901 $ 13,703 $20,002 $ 3,182 $ 3,914
Net realized gains (losses) from investment
transactions.............................. 2,810 1,738 1,435 (530) 106 16
Net change in unrealized appreciation
(depreciation) from investments........... 9,935 5,870 11,621 7,608 2,607 1,197
-------- -------- -------- -------- -------- --------
Change in net assets resulting from
operations.................................... 24,110 24,509 26,759 27,080 5,895 5,127
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income.................. (11,068) (16,473) (11,473) (17,054) (2,988) (3,488)
From net realized gains from investment
transactions.............................. (3,217) (414) -- -- -- --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income.................. (217) (322) (1,357) (1,627) (135) (346)
From net realized gains from investment
transactions.............................. (68) (11) -- -- -- --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income.................. (79) (106) (869) (1,321) (59) (80)
From net realized gains from investment
transactions.............................. (31) (4) -- -- -- --
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income.................. -- -- (4) -- -- --
-------- -------- -------- -------- -------- --------
Change in net assets from shareholder
distributions................................. (14,680) (17,330) (13,703) (20,002) (3,182) (3,914)
-------- -------- -------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................. 57,109 103,061 137,310 194,651 14,061 19,089
Proceeds from shares issued in conversion... -- 182,568 46,179 55,269 -- 78,683
Dividends reinvested........................ 2,483 603 1,566 2,256 140 244
Cost of shares redeemed..................... (43,522) (56,820) (46,331) (62,696) (10,548) (14,381)
-------- -------- -------- -------- -------- --------
Change in net assets from share transactions.... 16,070 229,412 138,724 189,480 3,653 83,635
-------- -------- -------- -------- -------- --------
Change in net assets............................ 25,500 236,591 151,780 196,558 6,366 84,848
NET ASSETS:
Beginning of period......................... 462,853 226,262 486,664 290,106 124,783 39,935
-------- -------- -------- -------- -------- --------
End of period............................... $488,353 $462,853 $638,444 $486,664 $131,149 $124,783
======== ======== ======== ======== ======== ========
SHARE TRANSACTIONS:
Issued...................................... 5,167 9,528 13,772 19,945 1,366 1,892
Issued in conversion........................ -- 16,858 4,581 5,680 -- 7,752
Reinvested.................................. 223 56 157 231 13 24
Redeemed.................................... (3,937) (5,252) (4,645) (6,436) (1,024) (1,415)
-------- -------- -------- -------- -------- --------
Change in shares................................ 1,453 21,190 13,865 19,420 355 8,253
======== ======== ======== ======== ======== ========
Undistributed net investment income included in
net assets:
End of period............................... $ 234 $ 233 $ 18 $ 18 $ -- $ --
======== ======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
65
<PAGE> 68
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
OHIO LOUISIANA
MUNICIPAL BOND MUNICIPAL BOND
FUND FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income................................... $ 4,315 $ 6,661 $ 3,805 $ 8,667
Net realized gains (losses) from investment
transactions.......................................... 89 (175) 332 (79)
Net change in unrealized appreciation (depreciation)
from investments...................................... 3,389 2,389 2,791 3,224
-------- -------- -------- --------
Change in net assets resulting from operations.............. 7,793 8,875 6,928 11,812
-------- -------- -------- --------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income.............................. (3,582) (5,336) (2,571) (6,174)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income.............................. (389) (810) (1,154) (2,349)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income.............................. (344) (515) (80) (144)
-------- -------- -------- --------
Change in net assets from shareholder distributions......... (4,315) (6,661) (3,805) (8,667)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............................. 25,945 39,896 7,525 10,148
Proceeds from shares issued in conversion............... -- 39,137 -- --
Dividends reinvested.................................... 583 1,160 795 1,612
Cost of shares redeemed................................. (15,274) (24,777) (21,164) (41,977)
-------- -------- -------- --------
Change in net assets from share transactions................ 11,254 55,416 (12,844) (30,217)
-------- -------- -------- --------
Change in net assets........................................ 14,732 57,630 (9,721) (27,072)
NET ASSETS:
Beginning of period..................................... 163,602 105,972 165,671 192,743
-------- -------- -------- --------
End of period........................................... $178,334 $163,602 $155,950 $165,671
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued.................................................. 2,361 3,691 740 1,013
Issued in conversion.................................... -- 3,617 -- --
Reinvested.............................................. 52 107 77 161
Redeemed................................................ (1,388) (2,289) (2,076) (4,190)
-------- -------- -------- --------
Change in shares............................................ 1,025 5,126 (1,259) (3,016)
======== ======== ======== ========
Undistributed net investment income included in net assets:
End of period........................................... $ 5 $ 5 $ -- $ --
======== ======== ======== ========
</TABLE>
See notes to financial statements.
66
<PAGE> 69
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
WEST VIRGINIA ARIZONA
MUNICIPAL BOND MUNICIPAL BOND
FUND FUND
-------------------------- --------------------------
JANUARY 17, JANUARY 17,
SIX MONTHS 1997 SIX MONTHS 1997
ENDED THROUGH ENDED THROUGH
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(a) 1997 1997 (a)
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................. $ 2,507 $ 2,113 $ 6,312 $ 5,890
Net realized gains (losses) from investment
transactions.................................... 61 (28) 1,540 982
Net change in unrealized appreciation
(depreciation) from investments................. 2,270 627 3,804 511
-------- -------- -------- --------
Change in net assets resulting from operations........ 4,838 2,712 11,656 7,383
-------- -------- -------- --------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income........................ (2,470) (2,097) (6,285) (5,879)
From net realized gains from investment
transactions.................................... (33) -- (1,813) --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........................ (20) (11) (27) (11)
From net realized gains from investment
transactions.................................... -- -- (7) --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income........................ (17) (5) -- --
From net realized gains from investment
transactions.................................... -- -- -- --
-------- -------- -------- --------
Change in net assets from shareholder distributions... (2,540) (2,113) (8,132) (5,890)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....................... 13,042 10,842 17,620 11,134
Proceeds from shares issued in conversion......... -- 91,179 -- 263,882
Dividends reinvested.............................. 56 9 29 5
Cost of shares redeemed........................... (8,157) (4,937) (19,414) (19,259)
-------- -------- -------- --------
Change in net assets from share transactions.......... 4,941 97,093 (1,765) 255,762
-------- -------- -------- --------
Change in net assets.................................. 7,239 97,692 1,759 257,255
NET ASSETS:
Beginning of period............................... 97,692 -- 257,255 --
-------- -------- -------- --------
End of period..................................... $104,931 $ 97,692 $259,014 $257,255
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued............................................ 1,281 1,081 1,736 1,116
Issued in conversion.............................. -- 9,118 -- 26,388
Reinvested........................................ 6 1 3 1
Redeemed.......................................... (803) (492) (1,914) (1,930)
-------- -------- -------- --------
Change in shares...................................... 484 9,708 (175) 25,575
======== ======== ======== ========
Undistributed net investment income included in net
assets:
End of period..................................... $ -- $ -- $ -- $ --
======== ======== ======== ========
</TABLE>
- ------------
(a) Period from commencement of operations.
See notes to financial statements.
67
<PAGE> 70
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
(Unaudited)
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company
established as a Massachusetts business trust. The accompanying financial
statements and financial highlights are those of the 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 Arizona
Municipal Bond Fund, and the West Virginia Municipal Bond Fund (individually
a "Fund", collectively the "Funds") only. Each Fund is a non-diversified
mutual fund, except for the Intermediate Tax-Free Bond Fund and the Municipal
Income Fund, which are diversified.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Intermediate Tax-Free Bond Fund Current income exempt from Federal income taxes consistent
with prudent investment management and the preservation of
capital.
Municipal Income Fund Current income exempt from Federal income taxes.
Kentucky Municipal Bond Fund Current income exempt from Federal income tax and Kentucky
personal income tax consistent with the preservation of
principal.
Ohio Municipal Bond Fund Current income exempt from Federal income tax and Ohio
personal income tax consistent with the preservation of
principal.
Louisiana Municipal Bond Fund Current income both consistent with the preservation of
principal and exempt from Federal income tax and Louisiana
income tax.
Arizona Municipal Bond Fund Current income exempt from Federal income tax and Arizona
income tax consistent with the preservation of principal.
West Virginia Municipal Bond Fund Current income exempt from Federal income tax and West
Virginia income tax consistent with the preservation of
principal.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Debt securities (other than short-term investments maturing in 60 days or
less), including municipal securities, are valued on the basis of
valuations provided by dealers or by an independent pricing service
approved by the Board of Trustees. Short-term investments maturing in 60
days or less are valued at amortized cost, which approximates market
value. Futures contracts are valued at the settlement price established
each day by the board of trade or an exchange on which they are traded.
Options traded on an exchange are valued using the last sale price or, in
the absence of a sale, the last offering price. Options traded
over-the-counter are valued using dealer-supplied valuations. Investments
for which there are no such quotations or valuations are valued at fair
value as determined in good faith by the Fair Value Committee, which is
comprised of members from Banc One Investment Advisors Corporation (the
"Advisor") and the The One Group Services Company (the "Administrator"),
under the direction of the Board of Trustees.
Continued
68
<PAGE> 71
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements with institutions that are
deemed by the Advisor to be of good standing and creditworthy under
guidelines established by the Board of Trustees. Each repurchase
agreement is recorded at cost. The Fund requires that the securities
purchased in a repurchase agreement transaction be transferred to the
custodian in a manner sufficient to enable the Fund to obtain those
securities in the event of a counterparty default. The seller, under the
repurchase agreement, is required to maintain the value of the securities
held at not less than the repurchase price, including accrued interest.
Repurchase agreements are considered to be loans by a fund under the 1940
Act.
WRITTEN OPTIONS
The Funds may write covered call or secured put options for which
premiums received are recorded as liabilities and are subsequently
adjusted to the current value of the options written. Premiums received
from writing options which expire are treated as realized gains. Premiums
received from writing options, which are either exercised or closed, are
offset against the proceeds received or amount paid on the transaction to
determine realized gains or losses.
FUTURES CONTRACTS
The Funds may enter into futures contracts for the delayed delivery of
securities at a fixed price at some future date or for the change in the
value of a specified financial index over a predetermined time period.
Cash or securities are deposited with brokers in order to maintain a
position. Subsequent payments made or received by the Fund based on the
daily change in the market value of the position are recorded as
unrealized appreciation or depreciation until the contract is closed out,
at which time the appreciation or depreciation is realized.
INDEXED SECURITIES
The Funds may invest in indexed securities whose value is linked either
directly or inversely to changes in foreign currencies, interest rates,
commodities, indices or other reference instruments. Indexed securities
may be more volatile than the referenced instrument itself, but any loss
is limited to the amount of the original investment.
MORTGAGE ROLLS
The Funds may enter into mortgage "dollar rolls" in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar securities
on a specified future date. During the roll period, the Fund forgoes
principal and interest paid on the mortgage-backed securities. The Fund
is compensated by fee income or the difference between the current sales
price and the lower forward price for the future purchase.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities
in which they are invested pursuant to agreements requiring that the loan
be continuously secured by cash, U.S. Government or U.S. Government
Agency securities, shares of an investment trust or mutual fund, or any
combination of cash and such securities as collateral equal at all times
to at least 100% of the market value plus accrued interest on the
securities lent. The Funds continue to earn interest on securities lent
while simultaneously seeking to earn interest on the investment of
collateral. Collateral is marked to market daily to provide a level of
collateral at least equal to the market value of securities lent. There
may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers deemed by the
Advisor to be of good standing and creditworthy under guidelines
established by the Board of Trustees and when, in the judgment of the
Advisor, the consideration which can be earned currently from such
securities loans justifies the attendant
Continued
69
<PAGE> 72
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
risks. Loans are subject to termination by the Funds or the borrower at
any time, and are, therefore, not considered to be illiquid investments.
As of December 31, 1997 the Funds had no securities on loan.
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net
realized gains or losses from sales of securities are determined on the
specific identification cost method. Interest income and expenses are
recognized on the accrual basis. Dividends are recorded on the
ex-dividend date. Interest income, including any discount or premium, is
accrued as earned using the effective interest method.
EXPENSES
Expenses directly attributable to a Fund are charged directly to that
Fund, while the expenses which are attributable to more than one fund of
the Trust are allocated among the respective Funds. Each class of shares
bears its pro-rata portion of expenses attributable to its series, except
that each class separately bears expenses related specifically to that
class, such as distribution fees.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly
for the Funds. Net realized capital gains, if any, are distributed at
least annually. Dividends are declared separately for each class. No
class has preferential dividend rights; differences in per share dividend
rates are due to differences in separate class expenses.
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for mortgage-backed securities,
expiring capital loss carryforwards, and deferrals of certain losses.
Permanent book and tax basis differences have been reclassified among the
components of net assets.
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each Fund intends to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and
from net realized capital gains sufficient to relieve it from all, or
substantially all, Federal income taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value, which may, without shareholder approval, be divided into an
unlimited number of series of such shares and any series may be classified or
reclassified into one or more classes. The Trust is registered to offer forty
series and five classes of shares: Fiduciary Class, Class A, Class B, Class C
and Service. Currently, the Trust consists of thirty-three active Funds. The
Funds are each authorized to issue Fiduciary Class, Class A, Class B, and
Class C Shares. Class A Shares are subject to initial sales charges, imposed
at the time of purchase, in accordance with the Funds' prospectus. Certain
redemptions of Class B and Class C Shares are subject to contingent deferred
sales charges in accordance with the Funds' prospectus. As of December 31,
1997, there were no shareholders in Class C of the Funds except for the
Municipal Income Fund. Shareholders are entitled to one vote for each full
share held and will vote in the aggregate and not by class or series, except
as otherwise expressly required by law or when the Board of Trustees has
determined that the matter to be voted on affects only the interest of
shareholders of a particular class or series. The following is a summary of
transactions in Fund shares for the periods ended December 31, 1997 and June
30, 1997:
Continued
70
<PAGE> 73
-----------------------------------------------------------------------------
The One Group Family of Mutual Funds
-----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE MUNICIPAL INCOME KENTUCKY MUNICIPAL
BOND FUND FUND BOND FUND
------------------------- ------------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997
------------ ---------- ------------ ---------- ------------ ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued........... $53,215 $ 98,433 $ 92,923 $155,470 $ 12,769 $ 17,564
Proceeds from shares issued in
conversion.......................... -- 182,568 46,179 55,269 -- 78,683
Dividends reinvested.................. 2,177 267 19 198 1 11
Cost of shares redeemed............... (41,870) (54,356) (36,291) (49,425) (10,106) (10,777)
------- -------- -------- -------- -------- --------
Change in net assets from Fiduciary
Share transactions.................. $13,522 $226,912 $102,830 $161,512 $ 2,664 $ 85,481
======= ======== ======== ======== ======== ========
CLASS A SHARES:
Proceeds from shares issued........... $ 2,559 $ 2,964 $ 34,091 $ 24,091 $ 460 $ 425
Dividends reinvested.................. 215 245 957 1,160 106 191
Cost of shares redeemed............... (1,459) (1,518) (7,839) (9,801) (351) (3,370)
------- -------- -------- -------- -------- --------
Change in net assets from Class A
Share transactions.................. $ 1,315 $ 1,691 $ 27,209 $ 15,450 $ 215 $ (2,754)
======= ======== ======== ======== ======== ========
CLASS B SHARES:
Proceeds from shares issued........... $ 1,335 $ 1,664 $ 9,477 $ 15,090 $ 832 $ 1,100
Dividends reinvested.................. 91 91 589 898 33 42
Cost of shares redeemed............... (193) (946) (2,201) (3,470) (91) (234)
------- -------- -------- -------- -------- --------
Change in net assets from Class B
Share transactions.................. $ 1,233 $ 809 $ 7,865 $ 12,518 $ 774 $ 908
======= ======== ======== ======== ======== ========
CLASS C SHARES:
Proceeds from shares issued........... $ 819
Dividends reinvested.................. 1
Cost of shares redeemed............... --
========
Change in net assets from Class C
Shares transactions................. $ 820
========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued................................ 4,813 9,103 9,326 15,939 1,239 1,740
Issued in conversion.................. -- 16,858 4,581 5,680 -- 7,752
Reinvested............................ 196 25 2 20 -- 1
Redeemed.............................. (3,788) (5,024) (3,639) (5,078) (981) (1,061)
------- -------- -------- -------- -------- --------
Change in Fiduciary Shares............ 1,221 20,962 10,270 16,561 258 8,432
======= ======== ======== ======== ======== ========
CLASS A SHARES:
Issued................................ 233 272 3,411 2,459 45 42
Reinvested............................ 19 23 96 119 10 19
Redeemed.............................. (132) (141) (785) (1,002) (34) (331)
------- -------- -------- -------- -------- --------
Change in Class A Shares.............. 120 154 2,722 1,576 21 (270)
======= ======== ======== ======== ======== ========
CLASS B SHARES:
Issued................................ 121 153 953 1,547 82 110
Reinvested............................ 8 8 59 92 3 4
Redeemed.............................. (17) (87) (221) (356) (9) (23)
------- -------- -------- -------- -------- --------
Change in Class B Shares.............. 112 74 791 1,283 76 91
======= ======== ======== ======== ======== ========
CLASS C SHARES:
Issued................................ 82
Reinvested............................ --(a)
Redeemed.............................. --
========
Change in Class C Shares.............. 82
========
</TABLE>
- ------------
(a) Amount less than $1,000.
Continued
71
<PAGE> 74
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
OHIO MUNICIPAL LOUISIANA MUNICIPAL
BOND FUND BOND FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued............................... $ 18,926 $28,385 $ 3,255 $ 5,386
Proceeds issued in conversion............................. -- 39,137 -- --
Dividends reinvested...................................... 22 93 2 --
Cost of shares redeemed................................... (11,179) (16,829) (15,899) (30,290)
-------- -------- -------- --------
Change in net assets from Fiduciary Share transactions.... $ 7,769 $50,786 $(12,642) $(24,904)
======== ======== ======== ========
CLASS A SHARES:
Proceeds from shares issued............................... $ 2,119 $ 5,044 $ 3,711 $ 4,042
Dividends reinvested...................................... 311 675 740 1,510
Cost of shares redeemed................................... (2,516) (6,371) (4,813) (11,414)
-------- -------- -------- --------
Change in net assets from Class A Share transactions...... $ (86) $ (652) $ (362) $ (5,862)
======== ======== ======== ========
CLASS B SHARES:
Proceeds from shares issued............................... $ 4,900 $ 6,467 $ 559 $ 720
Dividends reinvested...................................... 250 392 53 102
Cost of shares redeemed................................... (1,579) (1,577) (452) (273)
-------- -------- -------- --------
Change in net assets from Class B Share transactions...... $ 3,571 $ 5,282 $ 160 $ 549
======== ======== ======== ========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.................................................... 1,726 2,635 320 538
Issued in conversion...................................... -- 3,617 -- --
Reinvested................................................ 2 9 -- --
Redeemed.................................................. (1,017) (1,556) (1,559) (3,023)
-------- -------- -------- --------
Change in Fiduciary Shares................................ 711 4,705 (1,239) (2,485)
======== ======== ======== ========
CLASS A SHARES:
Issued.................................................... 193 464 365 403
Reinvested................................................ 28 62 72 151
Redeemed.................................................. (229) (588) (472) (1,140)
-------- -------- -------- --------
Change in Class A Shares.................................. (8) (62) (35) (586)
======== ======== ======== ========
CLASS B SHARES:
Issued.................................................... 442 592 55 72
Reinvested................................................ 22 36 5 10
Redeemed.................................................. (142) (145) (45) (27)
-------- -------- -------- --------
Change in Class B Shares.................................. 322 483 15 55
======== ======== ======== ========
</TABLE>
Continued
72
<PAGE> 75
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Amounts in Thousands)
<TABLE>
<CAPTION>
WEST VIRGINIA MUNICIPAL BOND FUND ARIZONA MUNICIPAL BOND FUND
------------------------------------- -------------------------------------
JANUARY 17, 1997 JANUARY 17, 1997
SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(a) 1997 1997(a)
----------------- ----------------- ----------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued...... $12,615 $ 9,442 $ 16,928 $ 9,187
Proceeds from shares issued in
conversion..................... -- 91,179 -- 263,882
Dividends reinvested............. 27 --(b) -- --
Cost of shares redeemed.......... (8,156) (4,937) (18,110) (18,791)
------- ------- -------- --------
Change in net assets from
Fiduciary Share transactions... $ 4,486 $95,684 (1,182) $254,278
======= ======= ======== ========
CLASS A SHARES:
Proceeds from shares issued...... $ 2 $ 795 $ 692 $ 1,947
Dividends reinvested............. 20 7 29 5
Cost of shares redeemed.......... -- -- (1,304) (468)
------- ------- -------- --------
Change in net assets from Class A
Share transactions............. $ 22 $ 802 $ (583) $ 1,484
======= ======= ======== ========
CLASS B SHARES:
Proceeds from shares issued...... $ 425 $ 605 $ -- $ --(b)
Dividends reinvested............. 9 2 -- --
Cost of shares redeemed.......... (1) -- -- --
------- ------- -------- --------
Change in net assets from Class B
Share transactions............. $ 433 $ 607 $ -- $ --(b)
======= ======= ======== ========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued........................... 1,240 941 1,667 920
Issued in conversion............. -- 9,118 -- 26,388
Reinvested....................... 3 1 -- --
Redeemed......................... (803) (492) (1,784) (1,883)
------- ------- -------- --------
Change in Fiduciary Shares....... 440 9,568 (117) 25,425
======= ======= ======== ========
CLASS A SHARES:
Issued........................... --(b) 79 69 196
Reinvested....................... 2 -- 3 1
Redeemed......................... -- -- (130) (47)
------- ------- -------- --------
Change in Class A Shares......... 2 79 (58) 150
======= ======= ======== ========
CLASS B SHARES:
Issued........................... 41 61 -- --(b)
Reinvested....................... 1 -- -- --
Redeemed......................... --(b) -- -- --
------- ------- -------- --------
Change in Class B Shares......... 42 61 -- --(b)
======= ======= ======== ========
</TABLE>
- ------------
(a) Period from commencement of operations.
(b) Amount is less than 1,000.
Continued
73
<PAGE> 76
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and the Advisor are parties to an investment advisory agreement
under which the Advisor is entitled to receive an annual fee, computed daily
and paid monthly, equal to the following percentages of the Funds' average
net assets: 0.60% of the Intermediate Tax-Free Bond Fund, the Ohio Municipal
Bond Fund and the Louisiana Municipal Bond Fund; and 0.45% of the Municipal
Income Fund, the Kentucky Municipal Bond Fund, the Arizona Municipal Bond
Fund and the West Virginia Municipal Bond Fund.
The Trust and the Administrator, a wholly-owned subsidiary of The BISYS
Group, Inc., are parties to an administrative agreement under which the
Administrator provides services for a fee that is computed daily and paid
monthly, at an annual rate of 0.20% on the first $1.5 billion of Trust net
assets (excluding the Investor Growth Fund, the Investor Growth & Income
Fund, the Investor Conservative Fund , and the Investor Balanced Fund, the
"Investor Funds" and the Treasury Only Money Market Fund and the Government
Money Market Fund, the "Institutional Money Market Funds"); 0.18% on the next
$0.5 billion of Trust net assets (excluding the Investor Funds and the
Institutional Money Market Funds); and 0.16% of Trust net assets (excluding
the Investor Funds and the Institutional Money Market Funds) over $2 billion.
The Advisor also serves as Sub-Administrator to each fund of the Trust,
pursuant to an agreement between the Administrator and the Advisor. Pursuant
to this agreement, the Advisor performs many of the Administrator's duties,
for which the Advisor receives a fee paid by the Administrator.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A, Class B, and Class C Shares are subject to
distribution and shareholder services plans (the "Plans") pursuant to Rule
12b-1 under the 1940 Act. As provided in the Plans, the Trust will pay the
Distributor a fee of 0.35% of the average daily net assets of Class A Shares
of each of the Funds and 1.00% of the average daily net assets of the Class B
and Class C Shares of each of the Funds. Currently, the Distributor has
voluntarily agreed to limit payments under the Plans to 0.25%, 0.90% and
0.90% of average daily net assets of the Class A , Class B and Class C
Shares, respectively, of each Fund. Up to 0.25% of the fees payable under the
Plans may be used as compensation for shareholder services by the Distributor
and/or financial institutions and intermediaries. Fees paid under the Plans
may be applied by the Distributor toward (i) compensation for its services in
connection with distribution assistance or provision of shareholder services;
or (ii) payments to financial institutions and intermediaries such as banks
(including affiliates of the Advisor), brokers, dealers and other
institutions, including the Distributor's affiliates and subsidiaries as
compensation for services or reimbursement of expenses incurred in connection
with distribution assistance or provision of shareholder services. Fiduciary
Class Shares of each Fund are offered without distribution fees. For the six
months ended December 31, 1997, the Distributor received $684,478 from
commissions earned on sales of Class A Shares and redemptions of Class B and
Class C Shares, of which the Distributor reallowed $684,217 to affiliated
broker/dealers of the Funds.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
Continued
74
<PAGE> 77
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
The Advisor, the Administrator and the Distributor voluntarily agreed to
waive a portion of their fees. For the six months ended December 31, 1997,
fees in the following amounts were waived (amounts in thousands):
<TABLE>
<CAPTION>
12b-1 FEES
INVESTMENT WAIVED
ADVISORY FEES ADMINISTRATION -------------------
WAIVED FEES WAIVED CLASS A CLASS B
------------- --------------- -------- --------
<S> <C> <C> <C> <C>
Intermediate Tax-Free Bond Fund............. $506 $-- $ 5 $ 2
Municipal Income Fund....................... 272 -- 28 20
Kentucky Municipal Bond Fund................ 58 -- 3 1
Ohio Municipal Bond Fund.................... 254 -- 8 8
Louisiana Municipal Bond Fund............... 184 -- 25 2
West Virginia Municipal Bond Fund........... 61 12 -- --
Arizona Municipal Bond Fund................. 103 28 1 --
</TABLE>
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the six months
ended December 31, 1997 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
--------- --------
<S> <C> <C>
Intermediate Tax-Free Bond Fund....................... $306,729 $273,836
Municipal Income Fund................................. 306,790 201,514
Kentucky Municipal Bond Fund.......................... 8,955 6,307
Ohio Municipal Bond Fund.............................. 25,364 10,936
Louisiana Municipal Bond Fund......................... 6,682 17,007
West Virginia Municipal Bond Fund..................... 15,110 8,613
Arizona Municipal Bond Fund........................... 23,439 29,041
</TABLE>
6. FINANCIAL INSTRUMENTS:
Investing in financial instruments such as written options, futures,
structured notes and indexed securities involves risks in excess of the
amounts reflected in the Statement of Assets and Liabilities. The face or
contract amounts reflect the extent of the involvement the Funds have in the
particular class of instrument. Risks associated with these instruments
include an imperfect correlation between the movements in the price of the
instruments and the price of the underlying securities and interest rates, an
illiquid secondary market for the instruments or inability of counterparties
to perform under the terms of the contract. The Funds enter into these
contracts primarily as a means to hedge against adverse fluctuation in
securities.
7. CONCENTRATION OF CREDIT RISK:
The Kentucky, Ohio, Louisiana, Arizona and West Virginia Municipal Bond Funds
invest primarily in debt obligations issued by the respective States and
their political subdivisions, agencies and public authorities to obtain funds
for various public purposes. The Funds are more susceptible to economic and
political factors adversely affecting issuers of the state's specific
municipal securities than are municipal bond funds that are not concentrated
in these issuers to the same extent.
8. CONVERSION OF COMMON TRUST FUNDS:
On December 19, 1997, the net assets of certain common trust funds managed by
the Advisor were exchanged in a tax-free conversion for shares of the
corresponding One Group Funds. The transaction was accounted for by a method
followed for tax purposes in a tax-free business combination. The following
is a summary of shares
Continued
75
<PAGE> 78
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1997
(Unaudited)
issued, net assets converted, net asset value per share issued and unrealized
appreciation of assets acquired as of the conversion date (amounts in
thousands except per share amounts):
<TABLE>
<CAPTION>
NET ASSET
NET ASSETS VALUE PER UNREALIZED
SHARES ACQUIRED SHARE ISSUED APPRECIATION
------ ---------- ------------- ------------
<S> <C> <C> <C> <C>
Municipal Income Fund.......................... 4,581 $ 46,179 $10.08 $ 1,820
</TABLE>
On January 20, 1997, the net assets of certain common trust funds managed by
the Advisor were exchanged in a tax-free conversion for shares of the
corresponding One Group Funds. The transaction was accounted for by a method
followed for tax purposes in a tax-free business combination. The following
is a summary of shares issued, net assets converted, net asset value per
share issued and unrealized appreciation of assets acquired as of the
conversion date (amounts in thousands except per share amounts):
<TABLE>
<CAPTION>
NET ASSET
NET ASSETS VALUE PER UNREALIZED
SHARES ACQUIRED SHARE ISSUED APPRECIATION
------ ---------- ------------- ------------
<S> <C> <C> <C> <C>
Intermediate Tax-Free Bond Fund..................... 16,858 $182,568 $10.83 $ 7,412
Municipal Income Fund............................... 5,680 55,269 9.73 1,784
Kentucky Municipal Bond Fund........................ 7,752 78,683 10.15 4,545
Ohio Municipal Bond Fund............................ 3,617 39,137 10.82 2,826
West Virginia Municipal Bond Fund................... 9,118 91,179 10.00 3,886
Arizona Municipal Bond Fund......................... 26,388 263,882 10.00 12,118
</TABLE>
Continued
76
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE BOND FUND
------------------------------------------------------------------------------------
FIDUCIARY
------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------------------------------
1997 1997 1996 1995 1994 1993
------------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $ 10.92 $ 10.67 $ 10.64 $ 10.49 $ 11.15 $ 10.69
-------- -------- -------- -------- -------- --------
Investment Activities:
Net investment income............. 0.26 0.54 0.52 0.54 0.52 0.53
Net realized and unrealized gains
(losses) from investments....... 0.30 0.27 0.04 0.15 (0.52) 0.49
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................... 0.56 0.81 0.56 0.69 0.00 1.02
-------- -------- -------- -------- -------- --------
Distributions:
Net investment income............. (0.26) (0.54) (0.51) (0.54) (0.53) (0.52)
In excess of net investment
income.......................... -- -- -- -- (0.01) --
Net realized gains................ (0.08) (0.02) (0.02) -- (0.01) (0.04)
In excess of net realized gains... -- -- -- -- (0.11) --
-------- -------- -------- -------- -------- --------
Total Distributions............. (0.34) (0.56) (0.53) (0.54) (0.66) (0.56)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD...... $ 11.14 $ 10.92 $ 10.67 $ 10.64 $ 10.49 $ 11.15
======== ======== ======== ======== ======== ========
Total Return........................ 5.18%(a) 7.76% 5.39% 6.75% (0.11)% 9.79%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $473,776 $451,089 $217,201 $211,229 $182,611 $166,489
Ratio of expenses to average net
assets.......................... 0.60%(b) 0.58% 0.54% 0.53% 0.48% 0.54%
Ratio of net investment income to
average net assets.............. 4.73%(b) 5.05% 4.87% 5.17% 4.78% 4.93%
Ratio of expenses to average net
assets *........................ 0.81%(b) 0.81% 0.87% 0.88% 0.84% 0.94%
Ratio of net investment income to
average net assets *............ 4.52%(b) 4.82% 4.54% 4.82% 4.42% 4.53%
Portfolio turnover (c)............ 57.29% 86.89% 111.58% 199.76% 105.98% 31.99%
</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) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
77
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE BOND FUND
-------------------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, -----------------------------------------------------------
1997 1997 1996 1995 1994 1993
------------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $ 10.91 $ 10.67 $ 10.63 $ 10.48 $ 11.14 $ 10.69
------- ------- ------- ------- ------- -------
Investment Activities:
Net investment income.................. 0.25 0.51 0.50 0.51 0.50 0.55
Net realized and unrealized gains
(losses) from investments............ 0.30 0.26 0.05 0.15 (0.52) 0.44
------- ------- ------- ------- ------- -------
Total from Investment Activities..... 0.55 0.77 0.55 0.66 (0.02) 0.99
------- ------- ------- ------- ------- -------
Distributions:
Net investment income.................. (0.25) (0.51) (0.49) (0.49) (0.52) (0.50)
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.................. (0.33) (0.53) (0.51) (0.51) (0.64) (0.54)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........... $ 11.13 $ 10.91 $ 10.67 $ 10.63 $ 10.48 $ 11.14
======= ======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)..... 5.06%(a) 7.39% 5.28% 6.49% (0.33)% 9.47%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $ 9,958 $ 8,457 $ 6,622 $ 5,614 $ 5,556 $ 5,480
Ratio of expenses to average net
assets............................... 0.85%(b) 0.83% 0.79% 0.78% 0.73% 0.71%
Ratio of net investment income to
average net assets................... 4.48%(b) 4.75% 4.62% 4.91% 4.57% 4.77%
Ratio of expenses to average net assets
*.................................... 1.16%(b) 1.15% 1.22% 1.23% 1.19% 1.27%
Ratio of net investment income to
average net assets *................. 4.17%(b) 4.43% 4.19% 4.46% 4.11% 4.21%
Portfolio turnover (c)................. 57.29% 86.89% 111.58% 199.76% 105.98% 31.99%
</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) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
78
<PAGE> 81
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE BOND FUND
-------------------------------------------------------------------
CLASS B
-------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, -----------------------------------------------
1997 1997 1996 1995 1994(a)
------------- ------- ------- ------- --------
(UNAUDITED)
<S> <C> <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........................... 0.22 0.45 0.43 0.46 0.17
Net realized and unrealized gains (losses) from
investments................................... 0.30 0.27 0.04 0.14 (0.67)
------- ------- ------- ------- -------
Total from Investment Activities.............. 0.52 0.72 0.47 0.60 (0.50)
------- ------- ------- ------- -------
Distributions:
Net investment income........................... (0.22) (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........................... (0.30) (0.47) (0.44) (0.45) (0.18)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $ 11.15 $ 10.93 $ 10.68 $ 10.65 $ 10.50
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge).............. 4.72%(b) 6.82% 4.48% 5.89% (4.48)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $ 4,619 $ 3,307 $ 2,439 $ 1,116 $ 549
Ratio of expenses to average net assets......... 1.50%(c) 1.47% 1.44% 1.43% 1.40%(c)
Ratio of net investment income to average net
assets........................................ 3.82%(c) 4.09% 3.97% 4.29% 4.08%(c)
Ratio of expenses to average net assets *....... 1.81%(c) 1.78% 1.87% 1.88% 1.85%(c)
Ratio of net investment income to average net
assets *...................................... 3.51%(c) 3.78% 3.54% 3.84% 3.63%(c)
Portfolio turnover (d).......................... 57.29% 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.
See notes to financial statements.
79
<PAGE> 82
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
------------------------------------------------------------------------------------
FIDUCIARY
------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------------------------------
1997 1997 1996 1995 1994 1993(a)
------------- -------- -------- -------- -------- --------
(UNAUDITED)
<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.............. 0.26 0.53 0.56 0.57 0.56 0.19
Net realized and unrealized gains
(losses) from investments........ 0.25 0.18 (0.03) 0.03 (0.42) 0.11
-------- -------- -------- -------- -------- -------
Total from Investment
Activities.................... 0.51 0.71 0.53 0.60 0.14 0.30
-------- -------- -------- -------- -------- -------
Distributions:
Net investment income.............. (0.26) (0.53) (0.56) (0.57) (0.56) (0.19)
Net realized gains................. -- -- -- -- (0.03) --
-------- -------- -------- -------- -------- -------
Total Distributions.............. (0.26) (0.53) (0.56) (0.57) (0.59) (0.19)
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD....... $ 10.09 $ 9.84 $ 9.66 $ 9.69 $ 9.66 $ 10.11
======== ======== ======== ======== ======== =======
Total Return......................... 5.11%(b) 7.49% 5.54% 6.46% 1.36% 5.18%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)............................ $522,135 $408,577 $241,115 $185,916 $152,763 $40,777
Ratio of expenses to average net
assets........................... 0.57%(c) 0.57% 0.56% 0.56% 0.54% 0.54%(b)
Ratio of net investment income to
average net assets............... 5.13%(c) 5.38% 5.70% 6.02% 5.61% 5.66%(b)
Ratio of expenses to average net
assets *......................... 0.67%(c) 0.68% 0.76% 0.74% 0.71% 1.01%(b)
Ratio of net investment income to
average net assets *............. 5.03%(c) 5.27% 5.50% 5.84% 5.44% 5.19%(b)
Portfolio turnover (d)............. 39.31% 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) Not annualized.
(c) Annualized
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
80
<PAGE> 83
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
--------------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ------------------------------------------------------------
1997 1997 1996 1995 1994 1993(a)
------------- ------- ------- ------- ------- --------
(UNAUDITED)
<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.................. 0.25 0.51 0.55 0.55 0.55 0.19
Net realized and unrealized gains
(losses) from investments............ 0.24 0.18 (0.04) 0.05 (0.43) 0.05
------- ------- ------- ------- ------- -------
Total from Investment Activities..... 0.49 0.69 0.51 0.60 0.12 0.24
------- ------- ------- ------- ------- -------
Distributions:
Net investment income.................. (0.25) (0.51) (0.54) (0.55) (0.54) (0.18)
Net realized gains..................... -- -- -- -- (0.03) --
------- ------- ------- ------- ------- -------
Total Distributions.................. (0.25) (0.51) (0.54) (0.55) (0.57) (0.18)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........... $ 10.11 $ 9.87 $ 9.69 $ 9.72 $ 9.67 $ 10.12
======= ======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)..... 4.99%(b) 7.24% 5.35% 6.21% 1.34% 6.86%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $70,372 $41,829 $25,787 $11,462 $10,725 $ 4,106
Ratio of expenses to average net
assets............................... 0.82%(c) 0.82% 0.81% 0.81% 0.79% 0.80%(c)
Ratio of net investment income to
average net assets................... 4.88%(c) 5.13% 5.45% 5.76% 5.44% 5.71%(c)
Ratio of expenses to average net
assets *............................. 1.02%(c) 1.03% 1.11% 1.09% 1.06% 1.36%(c)
Ratio of net investment income to
average net assets *................. 4.68%(c) 4.92% 5.15% 5.48% 5.17% 5.15%(c)
Portfolio turnover (d)................. 39.31% 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) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
81
<PAGE> 84
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
-------------------------------------------------------------------
CLASS B
-------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, -----------------------------------------------
1997 1997 1996 1995 1994(a)
------------- ------- ------- ------- --------
(UNAUDITED)
<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........................... 0.21 0.44 0.47 0.49 0.24
Net realized and unrealized gains (losses) from
investments................................... 0.24 0.18 (0.03) 0.07 (0.48)
------- ------- ------- ------- -------
Total from Investment Activities.............. 0.45 0.62 0.44 0.56 (0.24)
------- ------- ------- ------- -------
Distributions:
Net investment income........................... (0.21) (0.44) (0.47) (0.49) (0.24)
------- ------- ------- ------- -------
Total Distributions........................... (0.21) (0.44) (0.47) (0.49) (0.24)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $ 10.08 $ 9.84 $ 9.66 $ 9.69 $ 9.62
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge).............. 4.65%(b) 6.55% 4.65% 5.58% (1.98)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $45,110 $36,258 $23,204 $ 8,326 $ 4,855
Ratio of expenses to average net assets......... 1.46%(c) 1.47% 1.46% 1.46% 1.41% (c)
Ratio of net investment income to average net
assets........................................ 4.23%(c) 4.48% 4.80% 5.14% 4.95% (c)
Ratio of expenses to average net assets *....... 1.66%(c) 1.67% 1.76% 1.74% 1.62% (c)
Ratio of net investment income to average net
assets *...................................... 4.03%(c) 4.28% 4.50% 4.86% 4.74% (c)
Portfolio turnover (d).......................... 39.31% 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 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.
See notes to financial statements.
82
<PAGE> 85
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL
INCOME FUND
------------
CLASS C
------------
NOVEMBER 4,
1996 TO
DECEMBER 31,
1997(A)
------------
(UNAUDITED)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 9.96
-------
Investment Activities:
Net investment income..................................... 0.47
Net realized and unrealized gains (losses) from
investments 0.13
-------
Total from Investment Activities....................... 0.60
-------
Distributions:
Net investment income..................................... (0.47)
-------
Total Distributions.................................... (0.47)
-------
NET ASSET VALUE, END OF PERIOD.............................. $ 10.09
=======
Total Return (Excludes Sales Charge)........................ 5.82%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 827
Ratio of expenses to average net assets................... 1.46%(c)
Ratio of net investment income to average net assets...... 4.23%(c)
Ratio of expenses to average net assets *................. 1.66%(c)
Ratio of net investment income to average net assets *.... 4.03%(c)
Portfolio turnover (d).................................... 39.31%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
83
<PAGE> 86
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY MUNICIPAL BOND FUND
------------------------------------------------------------------------------------
FIDUCIARY
---------------------------------------------------
SIX MONTHS YEAR YEAR JANUARY 20, FEBRUARY 1, MARCH 12,
ENDED ENDED ENDED 1995 TO 1994, TO 1993, TO
DECEMBER 31, JUNE 30, JUNE 30, JUNE 30, JANUARY 19, JANUARY 31,
1997 1997 1996 1995(a) 1995(b) 1994(b)(c)
------------ -------- -------- ----------- ------------ -------------
(UNAUDITED)
<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............ 0.26 0.50 0.50 0.20 0.41 0.36
Net realized and unrealized gains
(losses) from investments...... 0.22 0.16 0.12 0.43 (0.95) 0.43
-------- -------- ------- ------- ------- -------
Total from Investment
Activities................... 0.48 0.66 0.62 0.63 (0.54) 0.79
-------- -------- ------- ------- ------- -------
Distributions:
Net investment income............ (0.26) (0.50) (0.50) (0.20) (0.42) (0.34)
-------- -------- ------- ------- ------- -------
Total Distributions............ (0.26) (0.50) (0.50) (0.20) (0.42) (0.34)
-------- -------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.................... $ 10.42 $ 10.20 $ 10.04 $ 9.92 $ 9.49 $ 10.45
======== ======== ======= ======= ======= =======
Total Return....................... 4.75%(d) 6.74% 6.35% 6.56%(d) (5.17)%(d) 8.05%(d)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000).......................... $122,026 $116,830 $30,300 $32,520 $41,953 $64,663
Ratio of expenses to average net
assets......................... 0.60%(e) 0.59% 0.68% 0.65%(e) 1.03% (e) 0.70%(e)
Ratio of net investment income to
average net assets............. 5.00%(e) 5.12% 4.60% 4.70%(e) 4.37% (e) 4.19%(e)
Ratio of expenses to average net
assets *....................... 0.69%(e) 0.72% 1.02% 0.97%(e) 1.05% (e) 0.91%(e)
Ratio of net investment income to
average net assets *........... 4.91%(e) 4.99% 4.26% 4.38%(e) 4.25% (e) 3.98%(e)
Portfolio turnover (f)........... 5.04% 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 The One Group.
(b) Prior to reorganizing as a fund of The 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.
See notes to financial statements.
84
<PAGE> 87
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY MUNICIPAL BOND FUND
-------------------------------------------------------------
CLASS A
-------------------------------------------------------------
SIX MONTHS YEAR YEAR JANUARY 20,
ENDED ENDED ENDED 1995 TO
DECEMBER 31, JUNE 30, JUNE 30, JUNE 30,
1997 1997 1996 1995(a)
------- ------ ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.............................. $ 10.21 $10.05 $ 9.93 $ 9.49
------- ------ ------- -------
Investment Activities:
Net investment income............................ 0.25 0.48 0.44 0.19
Net realized and unrealized gains (losses) from
investments.................................... 0.22 0.16 0.12 0.44
------- ------ ------- -------
Total from Investment Activities............... 0.47 0.64 0.56 0.63
------- ------ ------- -------
Distributions:
Net investment income............................ (0.25) (0.48) (0.44) (0.19)
------- ------ ------- -------
Total Distributions............................ (0.25) (0.48) (0.44) (0.19)
------- ------ ------- -------
NET ASSET VALUE,
END OF PERIOD.................................... $ 10.43 $10.21 $ 10.05 $ 9.93
======= ====== ======= =======
Total Return (Excludes Sales Charge)............... 4.62%(b) 6.46% 5.70% 5.66%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................ $ 5,890 $5,554 $ 8,178 $ 8,818
Ratio of expenses to average net assets.......... 0.84%(c) 0.84% 0.93% 0.90%(c)
Ratio of net investment income to average net
assets......................................... 4.75%(c) 4.66% 4.35% 4.44%(c)
Ratio of expenses to average net assets *........ 1.03%(c) 1.04% 1.37% 1.33%(c)
Ratio of net investment income to average net
assets *....................................... 4.56%(c) 4.46% 3.91% 4.01%(c)
Portfolio turnover (d)........................... 5.04% 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 The 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.
See notes to financial statements.
85
<PAGE> 88
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY MUNICIPAL BOND FUND
-------------------------------------------------------------
CLASS B
-------------------------------------------------------------
SIX MONTHS YEAR YEAR MARCH 16,
ENDED ENDED ENDED 1995 TO
DECEMBER 31, JUNE 30, JUNE 30, JUNE 30,
1997 1997 1996 1995(a)
------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.............................. $ 10.15 $ 9.99 $ 9.87 $ 9.75
------- ------- ------- -------
Investment Activities:
Net investment income............................ 0.21 0.41 0.38 0.14
Net realized and unrealized gains (losses) from
investments.................................... 0.22 0.16 0.13 0.12
------- ------- ------- -------
Total from Investment Activities............... 0.43 0.57 0.51 0.26
------- ------- ------- -------
Distributions:
Net investment income............................ (0.21) (0.41) (0.39) (0.14)
------- ------- ------- -------
Total Distributions............................ (0.21) (0.41) (0.39) (0.14)
------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.................................... $ 10.37 $ 10.15 $ 9.99 $ 9.87
======= ======= ======= =======
Total Return (Excludes Sales Charge)............... 4.31%(b) 5.81% 5.16% 2.63%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................ $ 3,233 $ 2,399 $ 1,457 $ 79
Ratio of expenses to average net assets.......... 1.50%(c) 1.47% 1.58% 1.58%(c)
Ratio of net investment income to average net
assets......................................... 4.10%(c) 4.05% 3.70% 3.89%(c)
Ratio of expenses to average net assets *........ 1.69%(c) 1.70% 2.02% 2.21%(c)
Ratio of net investment income to average net
assets *....................................... 3.91%(c) 3.82% 3.26% 3.25%(c)
Portfolio turnover (d)........................... 5.04% 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.
See notes to financial statements.
86
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
--------------------------------------------------------------------------------
FIDUCIARY
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ------------------------------------------------------------
1997 1997 1996 1995 1994 1993
------------- -------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.88 $ 10.69 $ 10.65 $ 10.58 $ 11.11 $ 10.48
-------- -------- ------- ------- ------- -------
Investment Activities:
Net investment income................. 0.28 0.56 0.56 0.55 0.51 0.54
Net realized and unrealized gains
(losses) from investments........... 0.22 0.19 0.04 0.07 (0.50) 0.62
-------- -------- ------- ------- ------- -------
Total from Investment Activities.... 0.50 0.75 0.60 0.62 0.01 1.16
-------- -------- ------- ------- ------- -------
Distributions:
Net investment income................. (0.28) (0.56) (0.56) (0.55) (0.52) (0.53)
In excess of net realized gains....... -- -- -- -- (0.02) --
-------- -------- ------- ------- ------- -------
Total Distributions................. (0.28) (0.56) (0.56) (0.55) (0.54) (0.53)
-------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.......... $ 11.10 $ 10.88 $ 10.69 $ 10.65 $ 10.58 $ 11.11
======== ======== ======= ======= ======= =======
Total Return............................ 4.68%(a) 7.22% 5.69% 6.07% 0.07% 11.43%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $143,757 $133,172 $80,611 $79,993 $93,261 $74,792
Ratio of expenses to average net
assets.............................. 0.53%(b) 0.54% 0.57% 0.58% 0.53% 0.55%
Ratio of net investment income to
average net assets.................. 5.12%(b) 5.24% 5.17% 5.29% 4.76% 5.14%
Ratio of expenses to average net
assets *............................ 0.82%(b) 0.84% 0.95% 0.91% 0.86% 0.94%
Ratio of net investment income to
average net assets *................ 4.83%(b) 4.94% 4.79% 4.96% 4.43% 4.75%
Portfolio turnover (c)................ 10.27% 7.45% 24.61% 77.69% 16.77% 26.67%
</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) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
87
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
-------------------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, -----------------------------------------------------------
1997 1997 1996 1995 1994 1993
------------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $ 10.91 $ 10.72 $ 10.68 $ 10.61 $ 11.13 $ 10.48
------- ------- ------- ------- ------- -------
Investment Activities:
Net investment income.................. 0.27 0.54 0.55 0.53 0.50 0.52
Net realized and unrealized gains
(losses) from investments............ 0.22 0.19 0.03 0.07 (0.48) 0.64
------- ------- ------- ------- ------- -------
Total from Investment Activities..... 0.49 0.73 0.58 0.60 0.02 1.16
------- ------- ------- ------- ------- -------
Distributions:
Net investment income.................. (0.27) (0.54) (0.54) (0.51) (0.50) (0.51)
In excess of net investment income..... -- -- -- (0.02) (0.02) --
In excess of net realized gains........ -- -- -- -- (0.02) --
------- ------- ------- ------- ------- -------
Total Distributions.................. (0.27) (0.54) (0.54) (0.53) (0.54) (0.51)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........... $ 11.13 $ 10.91 $ 10.72 $ 10.68 $ 10.61 $ 11.13
======= ======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)..... 4.54%(a) 6.95% 5.44% 5.79% (0.05)% 11.40%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $16,355 $16,114 $16,507 $12,006 $14,883 $13,092
Ratio of expenses to average net
assets............................... 0.79%(b) 0.79% 0.82% 0.82% 0.78% 0.77%
Ratio of net investment income to
average net assets................... 4.87%(b) 4.96% 4.92% 5.01% 4.63% 4.85%
Ratio of expenses to average net assets
*.................................... 1.19%(b) 1.19% 1.30% 1.25% 1.21% 1.25%
Ratio of net investment income to
average net assets *................. 4.47%(b) 4.56% 4.44% 4.58% 4.20% 4.37%
Portfolio turnover (c)................. 10.27% 7.45% 24.61% 77.69% 16.77% 26.67%
</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) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
88
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
------------------------------------------------------------------
CLASS B
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------------
1997 1997 1996 1995 1994(a)
------------- ------- ------- ------- -------
(UNAUDITED)
<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........................... 0.24 0.47 0.48 0.43 0.17
Net realized and unrealized gains (losses) from
investments................................... 0.22 0.19 0.03 0.07 (0.62)
------- ------- ------- ------- -------
Total from Investment Activities.............. 0.46 0.66 0.51 0.50 (0.45)
------- ------- ------- ------- -------
Distributions:
Net investment income........................... (0.24) (0.47) (0.47) (0.43) (0.17)
In excess of net investment income.............. -- -- -- -- (0.01)
------- ------- ------- ------- -------
Total Distributions........................... (0.24) (0.47) (0.47) (0.43) (0.18)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $ 11.20 $ 10.98 $ 10.79 $ 10.75 $ 10.68
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge).............. 4.20%(b) 6.26% 4.79% 5.17% (4.02)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $18,222 $14,316 $ 8,854 $ 3,209 $ 2,043
Ratio of expenses to average net assets......... 1.44%(c) 1.44% 1.47% 1.48% 1.28% (c)
Ratio of net investment income to average net
assets........................................ 4.23%(c) 4.33% 4.27% 4.40% 4.23% (c)
Ratio of expenses to average net assets *....... 1.84%(c) 1.84% 1.95% 1.91% 1.68% (c)
Ratio of net investment income to average net
assets *...................................... 3.83%(c) 3.93% 3.79% 3.97% 3.83% (c)
Portfolio turnover (d).......................... 10.27% 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.
See notes to financial statements.
89
<PAGE> 92
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA MUNICIPAL BOND FUND
------------------------------------------------
FIDUCIARY
------------------------------------------------
SIX MONTHS YEAR MARCH 26, 1996
ENDED ENDED THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1997 1997 1996(a)
-------- -------- --------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.............................. $ 10.10 $ 9.93 $ 10.00
-------- -------- --------
Investment Activities:
Net investment income............................ 0.25 0.49 0.13
Net realized and unrealized gains (losses) from
investments................................... 0.20 0.17 (0.07)
-------- -------- --------
Total from Investment Activities.............. 0.45 0.66 0.06
-------- -------- --------
Distributions:
Net investment income............................ (0.25) (0.49) (0.13)
-------- -------- --------
Total Distributions........................... (0.25) (0.49) (0.13)
-------- -------- --------
NET ASSET VALUE,
END OF PERIOD.................................... $ 10.30 $ 10.10 $ 9.93
======== ======== ========
Total Return....................................... 4.50%(b) 6.81% 0.90%(b)(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................ $102,802 $113,338 $136,041
Ratio of expenses to average net assets.......... 0.60%(d) 0.62% 0.71%(d)
Ratio of net investment income to average net
assets........................................ 4.86%(d) 4.91% 4.76%(d)
Ratio of expenses to average net assets *........ 0.83%(d) 0.84% 0.86%(d)
Ratio of net investment income to average net
assets *...................................... 4.63%(d) 4.69% 4.61%(d)
Portfolio turnover (e)........................... 4.23% 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 The One Group.
(b) Not annualized.
(c) Represents total return for Class A Shares from December 1, 1995 through
March 25, 1996 plus total return for Fiduciary Shares for the period March
26, 1996 through June 30, 1996.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
90
<PAGE> 93
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA MUNICIPAL BOND FUND
----------------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------------
SIX MONTHS YEAR SEVEN MONTHS
ENDED ENDED ENDED YEAR ENDED NOVEMBER 30,
DECEMBER 31, JUNE 30, JUNE 30, --------------------------------
1997 1997 1996(a) 1995 1994 1993
------------ -------- ------------ -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................... $ 10.10 $ 9.93 $ 10.09 $ 9.38 $ 10.27 $ 9.92
------- ------- ------- -------- -------- --------
Investment Activities:
Net investment income................. 0.24 0.47 0.24 0.50 0.49 0.52
Net realized and unrealized gains
(losses) from investments........... 0.19 0.17 (0.16) 0.71 (0.79) 0.42
------- ------- ------- -------- -------- --------
Total from Investment Activities.... 0.43 0.64 0.08 1.21 (0.30) 0.94
------- ------- ------- -------- -------- --------
Distributions:
Net investment income................. (0.24) (0.47) (0.24) (0.50) (0.49) (0.52)
Net realized gains.................... -- -- -- -- (0.10) (0.07)
------- ------- ------- -------- -------- --------
Total Distributions................. (0.24) (0.47) (0.24) (0.50) (0.59) (0.59)
------- ------- ------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 10.29 $ 10.10 $ 9.93 $ 10.09 $ 9.38 $ 10.27
======= ======= ======= ======== ======== ========
Total Return (Excludes Sales Charge).... 4.27%(b) 6.55% 0.84%(b) 13.11% (2.97)% 9.65%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $49,075 $48,498 $53,479 $206,119 $196,820 $196,534
Ratio of expenses to average net
assets.............................. 0.85%(c) 0.87% 0.69%(c) 0.62% 0.65% 0.62%
Ratio of net investment income to
average net assets.................. 4.61%(c) 4.66% 4.71%(c) 5.07% 4.97% 5.07%
Ratio of expenses to average net
assets *............................ 1.18%(c) 1.19% 0.86%(c) 0.77% 0.80% 0.78%
Ratio of net investment income to
average net assets *................ 4.28%(c) 4.34% 4.54%(c) 4.92% 4.82% 4.91%
Portfolio turnover (d)................ 4.23% 17.39% 16.72% 28.00% 24.00% 25.00%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Upon reorganizing as a fund of The One Group, the Paragon 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.
See notes to financial statements.
91
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA MUNICIPAL BOND FUND
-------------------------------------------------------------------------
CLASS B
-------------------------------------------------------------------------
SIX MONTHS YEAR SEVEN MONTHS YEAR SEPTEMBER 16,
ENDED ENDED ENDED ENDED 1994 THROUGH
DECEMBER 31, JUNE 30, JUNE 30, NOVEMBER 30, NOVEMBER 30,
1997 1997 1996(a) 1995 1994(b)
------- ------- ------- ------- -------
(UNAUDITED)
<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................ 0.20 0.40 0.21 0.42 0.08
Net realized and unrealized gains
(losses) from investments.......... 0.20 0.17 (0.16) 0.73 (0.37)
------- ------- ------- ------- -------
Total from Investment Activities... 0.40 0.57 0.05 1.15 (0.29)
------- ------- ------- ------- -------
Distributions:
Net investment income................ (0.20) (0.40) (0.21) (0.42) (0.08)
------- ------- ------- ------- -------
Total Distributions................ (0.20) (0.40) (0.21) (0.42) (0.08)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD......... $ 10.30 $ 10.10 $ 9.93 $ 10.09 $ 9.36
======= ======= ======= ======= =======
Total Return (Excludes Sales Charge)... 4.03%(c) 5.87% 0.48%(c) 12.52% 2.94%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).... $ 4,073 $ 3,835 $ 3,223 $ 2,115 $ 204
Ratio of expenses to average net
assets............................. 1.49%(d) 1.51% 1.50%(d) 1.37% 1.41%(d)
Ratio of net investment income to
average net assets................. 3.96%(d) 4.02% 3.98%(d) 4.27% 4.45%(d)
Ratio of expenses to average net
assets *........................... 1.82%(d) 1.85% 1.70%(d) 1.52% 1.56%(d)
Ratio of net investment income to
average net assets *............... 3.63%(d) 3.68% 3.78%(d) 4.12% 4.30%(d)
Portfolio turnover (e)............. 4.23% 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 The 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.
See notes to financial statements.
92
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA MUNICIPAL BOND FUND
-----------------------------------
FIDUCIARY
-----------------------------------
SIX MONTHS JANUARY 20, 1997
ENDED THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
-------- -------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD......................................... $ 10.06 $ 10.00
-------- -------
Investment Activities:
Net investment income..................................... 0.25 0.22
Net realized and unrealized gains (losses) from
investments............................................. 0.23 0.06
-------- -------
Total from Investment Activities........................ 0.48 0.28
-------- -------
Distributions:
Net investment income..................................... (0.25) (0.22)
-------- -------
Total Distributions..................................... (0.25) (0.22)
-------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.29 $ 10.06
======== =======
Total Return................................................ 4.89%(b) 2.84%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $103,016 $96,270
Ratio of expenses to average net assets................... 0.59%(c) 0.59%(c)
Ratio of net investment income to average net assets...... 4.94%(c) 5.04%(c)
Ratio of expenses to average net assets *................. 0.73%(c) 0.67%(c)
Ratio of net investment income to average net assets *.... 4.80%(c) 4.96%(c)
Portfolio turnover (d).................................... 8.64% 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.
See notes to financial statements.
93
<PAGE> 96
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- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA MUNICIPAL BOND FUND
-----------------------------------
CLASS A
-----------------------------------
SIX MONTHS JANUARY 20, 1997
ENDED THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------- -------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 10.15 $ 10.00
------- -------
Investment Activities:
Net investment income..................................... 0.24 0.16
Net realized and unrealized gains (losses) from
investments............................................. 0.23 0.15
------- -------
Total from Investment Activities........................ 0.47 0.31
------- -------
Distributions:
Net investment income..................................... (0.24) (0.16)
------- -------
Total Distributions..................................... (0.24) (0.16)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.38 $ 10.15
======= =======
Total Return (Excludes Sales Charge)........................ 4.74%(b) 3.08%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 849 $ 808
Ratio of expenses to average net assets................... 0.84%(c) 0.84%(c)
Ratio of net investment income to average net assets...... 4.69%(c) 4.94%(c)
Ratio of expenses to average net assets *................. 1.08%(c) 0.97%(c)
Ratio of net investment income to average net assets *.... 4.45%(c) 4.81%(c)
Portfolio turnover (d).................................... 8.64% 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.
See notes to financial statements.
94
<PAGE> 97
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA MUNICIPAL BOND FUND
-----------------------------------
CLASS B
-----------------------------------
SIX MONTHS JANUARY 20, 1997
ENDED THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------- -------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 10.12 $ 10.00
------- -------
Investment Activities:
Net investment income..................................... 0.21 0.14
Net realized and unrealized gains (losses) from
investments............................................. 0.23 0.12
------- -------
Total from Investment Activities........................ 0.44 0.26
------- -------
Distributions:
Net investment income..................................... (0.21) (0.14)
------- -------
Total Distributions..................................... (0.21) (0.14)
------- -------
NET ASSET VALUE,
END OF PERIOD............................................. $ 10.35 $ 10.12
======= =======
Total Return (Excludes Sales Charge)........................ 4.42%(b) 2.64%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 1,066 $ 614
Ratio of expenses to average net assets................... 1.49%(c) 1.49%(c)
Ratio of net investment income to average net assets...... 4.04%(c) 4.08%(c)
Ratio of expenses to average net assets *................. 1.73%(c) 1.62%(c)
Ratio of net investment income to average net assets *.... 3.80%(c) 3.95%(c)
Portfolio turnover (d).................................... 8.64% 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.
See notes to financial statements.
95
<PAGE> 98
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The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA MUNICIPAL BOND FUND
------------------------------
FIDUCIARY
------------------------------
JANUARY 20,
SIX MONTHS 1997
ENDED THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
-------- --------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.06 $ 10.00
-------- --------
Investment Activities:
Net investment income..................................... 0.25 0.23
Net realized and unrealized gains (losses) from
investments............................................ 0.21 0.06
-------- --------
Total from Investment Activities....................... 0.46 0.29
-------- --------
Distributions:
Net investment income..................................... (0.25) (0.23)
Net realized gains........................................ (0.07) --
-------- --------
Total Distributions.................................... (0.32) (0.23)
-------- --------
NET ASSET VALUE, END OF PERIOD.............................. $ 10.20 $ 10.06
======== ========
Total Return................................................ 4.62%(b) 2.90%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $258,078 $255,755
Ratio of expenses to average net assets................... 0.59%(c) 0.59%(c)
Ratio of net investment income to average net assets...... 4.84%(c) 5.09%(c)
Ratio of expenses to average net assets *................. 0.69%(c) 0.66%(c)
Ratio of net investment income to average net assets *.... 4.74%(c) 5.02%(c)
Portfolio turnover (d).................................... 9.17% 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.
See notes to financial statements.
96
<PAGE> 99
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA MUNICIPAL BOND FUND
------------------------------
CLASS A
------------------------------
JANUARY 20,
SIX MONTHS 1997
ENDED THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------- -------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 9.99 $ 10.00
------- -------
Investment Activities:
Net investment income..................................... 0.23 0.15
Net realized and unrealized gains (losses) from
investments............................................ 0.20 (0.01)
------- -------
Total from Investment Activities....................... 0.43 0.14
------- -------
Distributions:
Net investment income..................................... (0.23) (0.15)
Net realized gains........................................ (0.07) --
------- -------
Total Distributions.................................... (0.30) (0.15)
------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 10.12 $ 9.99
======= =======
Total Return (Excludes Sales Charge)........................ 4.38%(b) 1.40%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 936 $ 1,500
Ratio of expenses to average net assets................... 0.84%(c) 0.85%(c)
Ratio of net investment income to average net assets...... 4.59%(c) 4.90%(c)
Ratio of expenses to average net assets *................. 1.04%(c) 0.96%(c)
Ratio of net investment income to average net assets *.... 4.39%(c) 4.79%(c)
Portfolio turnover (d).................................... 9.17% 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.
See notes to financial statements.
97
<PAGE> 100
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA MUNICIPAL BOND FUND
------------------------------
CLASS B
------------------------------
JANUARY 20,
SIX MONTHS 1997
ENDED THROUGH
DECEMBER 31, JUNE 30,
1997 1997(a)
------- -------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 10.09 $ 10.00
------- -------
Investment Activities:
Net realized and unrealized gains (losses) from
investments............................................ 0.19 0.09
------- -------
Total from Investment Activities....................... 0.19 0.09
------- -------
Distributions:
Net investment income..................................... 0.00 --
Net realized gains........................................ (0.07) --
------- -------
Total Distributions.................................... (0.07) 0.00
------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 10.21 $ 10.09
======= =======
Total Return (Excludes Sales Charge)........................ 4.42%(b) 0.90%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ -- (c) $ -- (c)
Ratio of expenses to average net assets................... -- (d) -- (d)
Ratio of net investment income to average net assets...... -- (d) -- (d)
Ratio of expenses to average net assets *................. -- (d) -- (d)
Ratio of net investment income to average net assets *.... -- (d) -- (d)
Portfolio turnover (e).................................... 9.17% 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.
See notes to financial statements.
98
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Important Customer Information.
Please Read:
Shares of The One Group:
* are not deposits or obligations
of, or guaranteed by, BANC ONE
CORPORATION or its affiliates
* are not insured or guaranteed by the
FDIC or by any other governmental
agency or government-sponsored
agency of the federal government
or any state
* are subject to investment risks,
including possible loss of the
principal amount invested.
Banc One Investment Advisors
Corporation, a registered investment
advisor and an indirect subsidiary of
BANC ONE CORPORATION, serves
as an investment advisor to The One
Group, for which it receives advisory
fees. The One Group is distributed by
The One Group Services Company,
3435 Stelzer Road, Columbus,
Ohio 43219, which is not affiliated
with BANC ONE CORPORATION and
is not a bank. Contact us at our web
site address: www.onegroup.com or
e-mail us at [email protected].
For more complete information on
any of The One Group Funds, including
management fees and expenses,
you may obtain a prospectus from
The One Group Services Company.
Read the prospectus carefully
before investing.
BANC ONE
INVESTMENT
ADVISORS
CORPORATION
[LOGO] TOG-F-043
