<PAGE> 1
Money
Market Funds
Annual Report
For the year ended June 30, 1998
U.S. Treasury Securities
Money Market Fund
Prime Money Market Fund
Municipal Money Market Fund
Ohio Municipal Money Market Fund
THE ONE GROUP
----------------------
FAMILY OF MUTUAL FUNDS
<PAGE> 2
IMPORTANT CUSTOMER INFORMATION. INVESTMENT PRODUCTS:
- are not deposits or obligations of, or guaranteed by,
BANC ONE CORPORATION or any of its affiliates, [FDIC LOGO
WITH SLASH
- are not insured by the FDIC, and THOUGH IT]
- are subject to investment risks, including possible
loss of the principal amount invested.
<PAGE> 3
- --------------------------------------------------------------------------------
Table of Contents
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
Portfolio Performance Review................................................ 2
Schedules of Portfolio Investments.......................................... 6
Statements of Assets and Liabilities......................................... 17
Statements of Operations..................................................... 18
Statements of Changes in Net Assets.......................................... 19
Notes to Financial Statements................................................ 21
Financial Highlights......................................................... 28
Report of Independent Accountants............................................ 39
1
<PAGE> 4
The One Group U.S. Treasury Securities Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The seven-day yield on The One Group U.S. Treasury Securities Money Market Fund
Fiduciary share class was 5.12% on June 30, 1998, up slightly from 5.03% on June
30, 1997.
WHAT CONTRIBUTED TO THE FUND'S FAIRLY STABLE YIELDS?
The Fund's yield reflects the relative stability in interest rates brought on by
the Federal Reserve's unchanged monetary policy. Rate movements throughout the
year were fairly moderate. They reflected changing views on economic strength
and whether that strength would lead to inflationary pressures requiring Federal
Reserve action.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategy during the period was to maintain a "barbell" maturity
structure, meaning that we focused on securities at the extremes of the
short-term maturity range. As such, the Fund emphasized securities with
maturities between six months and one year along with overnight repurchase
agreements.
The money market yield curve during the fiscal year remained fairly steep,
meaning that securities with longer maturities paid relatively higher yields.
The Fund's "longer" securities-those maturing in six months to one year-enabled
the Fund to increase its yield. At the same time, the repurchase agreements,
which matured overnight, allowed the Fund to retain a high level of liquidity.
This strategy led to an average maturity of 37 days on June 30, 1998, enabling
the Fund to maintain its "AAA" average quality rating-the best possible-from
Standard & Poor's and Moody's Investors Service. This rating indicates that the
Fund's securities are of the highest quality and offer the lowest risk. In order
to receive this rating, a fund must have an average maturity no greater than 60
days.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Economic activity and its influences on Federal Reserve policies will have a
direct effect on the Fund over the next year. Over the near term, strong
domestic demand is likely to be offset by the Asian crisis. This will require
the Federal Reserve to be diligent in directing monetary policy. This outlook
warrants continued caution so the Fund can be positioned to benefit from any
action the Federal Reserve may take.
/s/ Andrew T. Linton
Andrew T. Linton
Fund Manager
/s/ Gary J. Madich
Gary J. Madich, CFA
Senior Managing Director of Fixed Income Securities
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
CLASS OF SHARES 7 DAY YIELD 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C> <C>
Fiduciary 5.12% 5.19% 4.73% 5.39% 5.48%
Class A 4.87% 4.92% 4.47% NA 4.10%
Class B 4.12% 4.14% NA NA 4.11%
Class C 4.08% NA NA NA 1.47%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
2
<PAGE> 5
The One Group Prime Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The seven-day yield on The One Group Prime Money Market Fund Fiduciary share
class was 5.22% on June 30, 1998, down slightly from 5.25% on June 30, 1997.
WHAT CONTRIBUTED TO THE FUND'S FAIRLY STABLE YIELD?
The relative stability of the Fund's yield reflects the fact that the Federal
Reserve left monetary policy unchanged throughout the fiscal year. Interim rate
movements were fairly moderate and reflected market participants' changing views
on how the problems in Asia would affect the domestic economy. Some believed
that the seriousness of the situation would lead to a significant slowdown of
the U.S. economy, causing the Federal Reserve to cut interest rates. Others
believed that the underlying strength of the domestic economy would overwhelm
any Asian impact, and that the Federal Reserve would be forced to hike interest
rates in anticipation of higher inflation.
WHICH VIEWPOINT DID YOU FAVOR?
Our stance was that the Federal Reserve would leave interest rates unchanged. We
believed that cheaper imports resulting from the Asian crisis would help keep
the U.S. inflation rate low, as U.S. producers would be compelled to keep prices
down in order to compete. Also encouraging the Federal Reserve to leave rates
alone was the federal budget surplus. With Congress apparently gridlocked on how
to spend it, fiscal stimulus was not a problem facing monetary policy makers.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
With Federal Reserve monetary policy on hold, the Fund's weighted average
maturity stayed in a range of 60 days to 85 days-slightly higher than usual.
When interest rates climbed, we extended the weighted average maturity to the
higher end of the range to capture better yields. And, when rates drifted
downward, we shortened the weighted average maturity until we perceived better
value in the market.
On June 30, 1998, the Fund's weighted average maturity was 71 days, compared to
68 days on June 30, 1997.
WHAT IS YOUR OUTLOOK FOR THE FUND?
As long as the Federal Reserve maintains a gradual, modest approach to
regulating monetary supply, we will continue to pursue yield advantages from a
weighted average maturity range that is slightly longer than average.
/s/ Roger C. Hale
Roger C. Hale, CFA, CFP
Fund Manager
/s/ Gary J. Madich
Gary J. Madich, CFA
Senior Managing Director of Fixed Income Securities
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
CLASS OF SHARES 7 DAY YIELD 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C> <C>
Fiduciary 5.22% 5.39% 4.92% 5.63% 5.76%
Class A 4.97% 5.13% 4.66% NA 4.29%
Class B 4.22% 4.35% NA NA 4.36%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
3
<PAGE> 6
The One Group Municipal Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The seven-day yield on The One Group Municipal Money Market Fund Fiduciary share
class was 3.15% on June 30, 1998, compared to 3.63% on June 30, 1997. (For
investors in the 39.6% federal income tax bracket, the June 30, 1998, tax-exempt
yield translates into a tax-equivalent yield of 5.16%.)
The Fund also experienced a significant increase in assets during the year to
$613.9 million from $524.5 million.
DID YIELDS FLUCTUATE MUCH DURING THE YEAR?
Yields in the variable-rate sector experienced the most volatility of any
sector, moving within a trading range of 2.75% to 4.50%. Rates reached their
peak in April and their low point in February. This volatility was due primarily
to changing technical supply and demand factors combined with inconsistent
market cash flows. In comparison, the one-year fixed-rate sector traded within a
narrower range of 3.55% to 3.85%.
HOW DID ECONOMIC EVENTS INFLUENCE MARKET PERFORMANCE?
Short-term tax-exempt rates moved moderately lower during the year. With the
Federal Reserve's monetary policy remaining unchanged, the market reacted
positively to moderate economic output and a low-inflation environment.
Many short-term municipal issuers have continued to benefit significantly from
the ongoing economic expansion. This favorable environment has allowed many
borrowers to either reduce their outstanding deficits or increase their cash
surplus, which resulted in reduced issuance compared to previous years. Lower
financing needs coupled with steady demand supported the downward trend in
rates.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategy continues to involve adjusting the mix of variable-rate and
fixed-rate obligations based on changing market conditions. We also incorporate
a quality-oriented investment selection process to help ensure that all issues
selected for the Fund represent minimal credit risk. Because of this process,
the Fund did not experience any adverse impact or credit downgrades from the
Asian bank and credit crisis that began to unfold in October.
As the yield curve shifted during the year, we maintained the Fund's average
maturity in a range of 34 days to 61 days. This enabled us to take advantage of
changing market conditions and to accommodate the Fund's liquidity needs. At
year-end, the average maturity was 46 days, compared to 37 days a year ago.
WHAT IS YOUR OUTLOOK FOR THE FUND?
The outlook for the municipal money market continues to look positive. While
demand for short-term products should continue to exceed available market
supply, we plan to focus on longer-term issues and rely on our investment
process in an attempt to provide competitive returns.
/s/ Thomas W. Cary
Thomas W. Cary
Fund Manager
/s/ Gary J. Madich
Gary J. Madich, CFA
Senior Managing Director of Fixed Income Securities
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
CLASS OF SHARES 7 DAY YIELD 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C> <C>
Fiduciary 3.15% 3.27% 3.05% 3.77% 3.84%
Class A 2.90% 3.01% 2.81% NA 2.64%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
4
<PAGE> 7
The One Group Ohio Municipal Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1998
HOW DID THE FUND PERFORM?
The seven-day yield on The One Group Ohio Municipal Money Market Fund Fiduciary
share class was 3.21% on June 30, 1998, compared to 3.73% on June 30, 1997. (For
investors in the 39.6% federal income tax bracket and the 7.0% Ohio state tax
bracket, the June 30, 1998 tax-exempt yield translates into a tax-equivalent
yield of 6.01%.)
The Fund also experienced a large increase in total assets during the year,
increasing to $118.3 million from $87.2 million.
HOW DID ECONOMIC EVENTS INFLUENCE PERFORMANCE?
The Federal Reserve kept monetary policy unchanged, heavily influenced by
moderate economic activity within a favorable inflationary environment. This
combination allowed for rates to trend moderately lower.
While short-term tax-exempt rates generally declined during the year, they did
so in an uneven fashion. Yields in the variable-rate demand sector experienced
the most volatility, moving within a trading range of 2.60% to 4.40%. This
volatility was due to the impact of quickly changing market conditions on
varying levels of supply and demand. In comparison, the one-year fixed-rate
sector traded within a narrower range of 3.45% to 3.75%.
DID THE OHIO POLITICAL PROCESS HAVE A ROLE IN THE SUPPLY/DEMAND SCENARIO?
The Ohio political scene played a role in affecting the supply of one-year
school district note issues. Many school district issuers put their financing
needs on hold, pending the May 1998 ballot decision on two proposals to let the
state reallocate revenues to school districts on a more equitable basis. When
the proposals were defeated, these issuers had to delay their voter-approved
issues until the November ballot, which ultimately reduced the supply of new
school notes during the spring. The relative lack of supply helped support
attractive prices during this period.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategy was to adjust the mix of variable-rate and fixed-rate
obligations in anticipation of and in response to changing market conditions.
While rates were slightly lower overall, there were noticeable upward rate
spikes during the year, underscoring the importance of the variable-rate sector.
Within this context, we maintained a high-quality portfolio, relying extensively
on our investment selection process to avoid any credit concerns resulting from
the Asian crisis.
With the yield curve shifting during the year, we maintained the Fund's average
maturity in a range of 34 days to 64 days. The changes in average maturity were
necessary to take advantage of shifting market conditions and to accommodate the
Fund's liquidity needs. At year-end, the average maturity was 36 days, compared
to 50 days a year ago.
WHAT IS YOUR OUTLOOK FOR THE FUND?
The near-term outlook for the Ohio municipal market remains favorable. With a
forecast of slowing economic activity and relatively stable rates, we believe
the Fund should continue to focus on slightly longer-term issues, supported by
our investment selection process, to attempt to provide attractive returns.
/s/ Thomas W. Cary
Thomas W. Cary
Fund Manager
/s/ Gary J. Madich
Gary J. Madich, CFA
Senior Managing Director of Fixed Income Securities
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
CLASS OF SHARES 7 DAY YIELD 1 YEAR 5 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C>
Fiduciary 3.21% 3.31% 3.06% 3.05%
Class A 2.96% 3.06% 2.83% 2.77%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
further information about your Fund.
5
<PAGE> 8
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The One Group Family of Mutual Funds
U.S. Treasury Securities Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS (19.5%):
U.S. Treasury Bills (2.5%):
$ 100,000 11/12/98........................... $ 98,042
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U.S. Treasury Notes (17.0%):
120,000 5.25%, 7/31/98 (b)................. 119,966
95,000 6.13%, 8/31/98 (b)................. 95,058
50,000 5.88%, 10/31/98.................... 50,046
50,000 8.88%, 2/15/99 (b)................. 51,003
50,000 5.88%, 2/28/99..................... 50,102
50,000 6.25%, 3/31/99 (b)................. 50,264
140,000 7.00%, 4/15/99..................... 141,518
100,000 6.38%, 5/15/99..................... 100,588
----------
658,545
----------
Total U.S. Treasury Obligations 756,587
----------
REPURCHASE AGREEMENTS (80.7%):
150,000 Barclays De Zoette Wedd, 5.80%
7/1/98 (Collateralized by
$182,288 various U.S. Treasury
Securities, 0.00% - 12.50%,
10/29/98 - 4/15/28, market value
$153,000)........................ 150,000
150,000 Deutche Morgan Grenfell, 6.00%,
7/1/98 (Collateralized by
$145,118 various U.S. Treasury
Securities, 5.00% - 14.00%,
2/15/99 - 11/15/11, market value
$153,001)........................ 150,000
30,000 Deutche Morgan Grenfell, 5.50%,
7/1/98 (Collateralized by $29,024
various U.S. Treasury Securities,
5.00% - 14.00%,
2/15/99 - 11/15/11, market value
$30,600)......................... 30,000
901,953 Goldman Sachs, 5.80%, 7/1/98
(Collateralized by $1,051,085
various U.S. Treasury Securities,
0.00% - 7.13%,
12/3/98 - 11/15/27, market value
$919,992)........................ 901,953
50,000 Goldman Sachs, 5.50%, 7/1/98
(Collateralized by $58,267
various U.S. Treasury Securities,
0.00% - 7.13%,
12/3/98 - 11/15/27, market value
$51,000)......................... 50,000
150,000 Greenwich Capital Inc., 5.75%,
7/1/98 (Collateralized by
$148,673 various U.S. Treasury
Securities, 3.38% - 6.50%,
7/15/02 - 4/15/28, market value
$153,002)........................ 150,000
150,000 HSBC Securities, 5.80%, 7/1/98
(Collateralized by $108,107
various U.S. Treasury Securities,
9.00% - 9.25%,
2/15/16 - 11/15/18, market value
$153,001)........................ 150,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
REPURCHASE AGREEMENTS, CONTINUED:
$ 150,000 J.P. Morgan Securities, 5.80%,
7/1/98 (Collateralized by
$140,384 various U.S. Treasury
Securities, 5.50% - 8.13%,
7/31/99 - 8/15/19, market value
$153,001)........................ $ 150,000
25,000 J.P. Morgan Securities, 5.40%,
7/1/98 (Collateralized by $24,750
U.S. Treasury Notes, 6.25%,
10/31/01, market value
$25,501)......................... 25,000
900,000 Morgan Stanley, 5.73%, 7/1/98
(Collateralized by $856,187
various U.S. Treasury Securities,
0.00% - 10.38%,
8/15/98 - 8/15/23, market value
$918,036)........................ 900,000
150,000 Prudential Securities, 5.65%,
7/1/98 (Collateralized by
$141,514 various U.S. Treasury
Securities, 0.00% - 13.38%,
7/31/98 - 2/15/25, market value
$153,001)........................ 150,000
150,000 Societe Generale, 6.00%, 7/1/98
(Collateralized by $149,146
various U.S. Treasury Securities,
5.88% - 11.75%,
4/30/99 - 2/15/15, market value
$153,021)........................ 150,000
150,000 Westdeutsche Landesbank, 5.70%,
7/1/98 (Collateralized by
$108,800 various U.S. Treasury
Securities, 5.38% - 14.00%,
2/15/01 - 11/15/11, market value
$153,001)........................ 150,000
30,000 Westdeutsche Landesbank, 5.50%,
7/1/98 (Collateralized by $21,760
various U.S. Treasury Securities,
5.38% - 14.00%,
2/15/01 - 11/15/11, market value
$30,616)......................... 30,000
----------
Total Repurchase Agreements 3,136,953
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL (6.6%):
Repurchase Agreements
203,538 Goldman Sachs, 5.80%, 7/1/98
(Collateralized by $205,585 U.S.
Treasury Notes, 5.63%, 5/15/01,
market value $207,609)........... 203,538
52,125 Goldman Sachs, 5.20%, 7/1/98
(Collateralized by $48,403 U.S.
Treasury Notes, 5.63%, 5/15/01,
market value $53,168)............ 52,125
----------
Total Short-Term Securities Held as
Collateral 255,663
----------
Total (Amortized Cost $4,149,203) (a) $4,149,203
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $3,887,140.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
(b) A portion of this security was loaned as of June 30, 1998.
See notes to financial statements.
6
<PAGE> 9
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The One Group Family of Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (3.7%):
Banking (3.7%):
$ 25,000 Bankers Trust New York Corp.,
6.00%, 7/7/98.................... $ 25,000
25,000 Bankers Trust New York Corp.,
5.88%, 7/14/98................... 25,000
20,000 Bankers Trust New York Corp.,
5.92%, 7/17/98................... 20,000
25,000 Bankers Trust New York Corp.,
5.91%, 8/7/98.................... 24,999
25,000 Bankers Trust New York Corp.,
5.77%, 5/21/99................... 24,989
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Total Certificates of Deposit 119,988
----------
COMMERCIAL PAPER (56.2%):
Automotive (5.1%):
30,000 American Honda Finance Corp.,
5.49%, 7/22/98................... 29,903
23,400 Harley-Davidson Funding, 5.53%,
7/9/98........................... 23,371
10,000 Harley-Davidson Funding, 5.55%,
7/10/98.......................... 9,986
12,320 Harley-Davidson Funding, 5.54%,
7/13/98.......................... 12,297
10,445 Harley-Davidson Funding, 5.54%,
7/16/98.......................... 10,421
15,450 Harley-Davidson Funding, 5.56%,
7/23/98.......................... 15,398
17,600 Harley-Davidson Funding, 5.55%,
7/24/98.......................... 17,538
8,300 Harley-Davidson Funding, 5.56%,
8/13/98.......................... 8,245
14,300 Harley-Davidson Funding, 5.58%,
8/18/98.......................... 14,194
22,500 Harley-Davidson Funding, 5.55%,
9/16/98.......................... 22,233
----------
163,586
----------
Banking (9.0%):
50,000 AB Spintab, 5.55%, 8/20/98......... 49,615
25,000 AB Spintab, 5.53%, 12/2/98......... 24,409
50,000 AB Spintab, 5.52%, 12/10/98........ 48,758
25,000 AB Spintab, 5.55%, 12/28/98........ 24,306
50,000 Banco Rio de la Plata S.A., 5.47%,
12/7/98.......................... 48,794
48,500 Banco Rio de la Plata S.A., 5.46%,
12/8/98.......................... 47,323
50,000 Norwest Corporation, 6.25%,
7/1/98........................... 49,999
----------
293,204
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Brokerage Services (4.6%):
$ 50,000 Lehman Brothers Holdings, Inc.,
5.52%, 7/15/98................... $ 49,892
50,000 Lehman Brothers Holdings, Inc.,
5.45%, 8/19/98................... 49,629
50,000 Salomon Smith Barney Holdings,
5.52%, 8/11/98................... 49,686
----------
149,207
----------
Construction (1.1%):
34,000 Cemex, S.A. de CV, 5.42%,
7/30/98.......................... 33,852
----------
Financial Services (8.8%):
17,550 Ace Overseas Corp., 5.60%,
7/10/98.......................... 17,525
32,000 Ace Overseas Corp., 5.62%,
7/17/98.......................... 31,920
47,550 Corporate Receivables Corp., 5.55%,
7/17/98.......................... 47,433
11,500 Old Line Funding Corp., 5.60%,
7/14/98.......................... 11,477
39,450 Old Line Funding Corp., 5.60%,
7/15/98.......................... 39,364
10,053 Old Line Funding Corp., 5.60%,
7/16/98.......................... 10,030
38,766 Variable Funding Capital Corp.,
5.57%, 8/18/98................... 38,478
15,000 WCP Funding, Inc., 5.53%,
7/07/98.......................... 14,986
25,000 WCP Funding, Inc., 5.50%,
7/14/98.......................... 24,950
25,000 WCP Funding, Inc., 5.53%,
7/23/98.......................... 24,916
25,000 WCP Funding, Inc., 5.53%,
7/29/98.......................... 24,892
----------
285,971
----------
Gas & Electric Utility (2.7%):
53,897 Cogentrix of Richmond, 5.65%,
7/23/98.......................... 53,711
13,000 Duke Capital Corp., 5.54%,
7/02/98.......................... 12,998
21,000 Duke Capital Corp., 5.54%,
7/16/98.......................... 20,952
----------
87,661
----------
Industrial Goods & Services (0.5%):
15,000 Akzo Nobel, Inc., 5.49%, 7/6/98.... 14,989
----------
Insurance (4.6%):
68,100 Safeco Credit Co., 5.56%, 7/8/98... 68,026
20,000 Safeco Credit Co., 5.54%,
7/13/98.......................... 19,963
20,000 Safeco Credit Co., 5.55%,
7/23/98.......................... 19,932
25,000 Safeco Credit Co., 5.55%, 8/3/98... 24,873
15,350 Safeco Credit Co., 5.58%,
9/21/98.......................... 15,155
----------
147,949
----------
Office Equipment & Services (3.8%):
37,000 Xerox Mexico SA de CV, 5.55%,
7/6/98........................... 36,971
49,500 Xerox Mexico SA de CV, 5.63%,
7/29/98.......................... 49,283
36,500 Xerox Mexico SA de CV, 5.56%,
8/5/98........................... 36,303
----------
122,557
----------
</TABLE>
Continued
7
<PAGE> 10
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Oil & Gas Exploration (3.9%):
$ 50,000 Pemex Capital, Inc., 5.54%,
8/20/98.......................... $ 49,615
16,000 Petroleo Brasileiro SA, 5.52%,
8/26/98.......................... 15,863
30,000 Petroleo Brasileiro SA, 5.43%,
9/29/98.......................... 29,593
30,000 Petroleo Brasileiro SA, 5.40%,
11/30/98......................... 29,316
----------
124,387
----------
Real Estate (8.5%):
46,385 75 State Street Capital Corp.,
5.56%, 7/9/98.................... 46,328
55,801 75 State Street Capital Corp.,
5.57%, 7/10/98................... 55,724
24,654 75 State Street Capital Corp.,
5.56%, 7/14/98................... 24,605
31,302 75 State Street Capital Corp.,
5.58%, 7/16/98................... 31,229
18,500 Countrywide Home Loans, 5.55%,
7/16/98.......................... 18,457
25,000 Countrywide Home Loans, 5.54%,
8/12/98.......................... 24,838
40,000 Countrywide Home Loans, 5.54%,
8/26/98.......................... 39,655
35,000 Countrywide Home Loans, 5.53%,
9/2/98........................... 34,661
----------
275,497
----------
Retail (3.6%):
25,000 Sotheby's, Inc., 5.55%, 7/1/98..... 25,000
25,000 Sotheby's, Inc., 5.56%, 7/13/98.... 24,954
25,000 Sotheby's, Inc., 5.56%, 7/20/98.... 24,927
10,000 Sotheby's, Inc., 5.56%, 8/3/98..... 9,949
15,000 Sotheby's, Inc., 5.55%, 8/14/98.... 14,898
15,000 Sotheby's, Inc., 5.58%, 8/21/98.... 14,881
----------
114,609
----------
Total Commercial Paper 1,813,469
----------
CORPORATE NOTES & BONDS (4.7%):
Banking (1.6%):
25,000 Abbey National, 5.88%, 12/22/98.... 24,994
26,000 Abbey National, 5.72%, 6/11/99..... 25,981
----------
50,975
----------
Brokerage Services (1.6%):
50,000 Bear Stearns Co., Inc., 5.63%,
5/14/99*......................... 50,000
----------
Computer Hardware (1.5%):
50,000 IBM Credit Corp., 5.45%, 2/18/99... 49,962
----------
Total Corporate Notes & Bonds 150,937
----------
FUNDING AGREEMENTS (11.8%):
50,000 Allstate Life Insurance Co., 5.82%,
8/31/98*......................... 50,000
160,000 General American Life Insurance
Co., 5.85%, 12/21/98*............ 160,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
FUNDING AGREEMENTS, CONTINUED:
$ 60,000 Peoples Security Life Insurance
Co., 5.82%, 10/1/98*............. $ 60,000
60,000 Providian Life & Health Insurance
Co., 5.82%, 11/1/98*............. 60,000
50,000 Providian Life & Health Insurance
Co., 5.76%, 2/12/99*............. 50,000
----------
Total Funding Agreements 380,000
----------
U.S. GOVERNMENT AGENCY SECURITIES (1.6%):
Student Loan Marketing Assoc. (1.6%):
50,000 5.32%, 9/28/98*.................... 50,000
----------
Total U.S. Government Agency Securities 50,000
----------
YANKEE & EURODOLLAR (18.4%):
Banking (18.4%):
15,000 Bank of Montreal, 5.81%, 11/9/98... 15,007
50,000 Bank of Nova Scotia, 5.89%,
12/15/98......................... 50,002
25,000 Bayerische Landesbank, 5.81%,
12/17/98......................... 24,992
30,000 Bayerische Vereinsbank AG, 5.70%,
10/6/98.......................... 29,995
25,000 Canadian Imperial Bank of Commerce,
5.94%, 10/21/98.................. 24,996
25,000 Canadian Imperial Bank of Commerce,
5.64%, 3/2/99.................... 24,990
25,000 Canadian Imperial Bank of Commerce,
5.69%, 3/10/99................... 24,995
15,000 Den Danske Bank, 5.72%, 11/30/98... 15,001
30,000 Deutsche Bank A.G., 5.66%,
3/26/99.......................... 29,988
25,000 Deutsche Bank A.G., 5.70%,
6/7/99........................... 24,987
25,000 National Australia Bank, 5.74%,
10/13/98......................... 24,997
27,000 National Westminster Bank, 5.71%,
4/16/99.......................... 26,991
26,000 Societe Generale, 5.86%, 7/21/98... 25,998
25,000 Societe Generale, 5.97%, 9/15/98... 24,998
25,000 Societe Generale, 5.86%,
11/18/98......................... 25,008
25,000 Societe Generale, 5.88%,
12/16/98......................... 24,997
25,000 Societe Generale, 5.73%, 3/29/99... 24,991
25,000 Swiss Bank Corp., 5.90%, 8/28/98... 24,998
75,000 Swiss Bank Corp., 5.83%,
12/16/98......................... 75,018
25,000 Swiss Bank Corp., 5.64%, 2/26/99... 24,992
25,000 Swiss Bank Corp., 5.81%, 4/29/99... 24,988
----------
Total Yankee & Eurodollar 592,929
----------
</TABLE>
Continued
8
<PAGE> 11
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
REPURCHASE AGREEMENTS (3.2%):
$102,434 Prudential Securities, 6.10%,
7/1/98 (Collateralized by
$101,841 various U.S. Government
Securities, 0.00% - 7.25%,
7/1/98 - 8/15/04, market value
$104,484)........................ $ 102,434
----------
Total Repurchase Agreements 102,434
----------
Total (Amortized Cost $3,209,757)(a) $3,209,757
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $3,223,901.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities. The interest rate, which will change periodically,
is based upon an index of market rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at June 30, 1998.
See notes to financial statements.
9
<PAGE> 12
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
DAILY DEMAND NOTES (9.4%):
Alabama (0.8%):
$ 1,300 Phenix City, IDR for Mead, AMT,
4.05%, 3/1/31, LOC:.............. $ 1,300
Bayerische Landesbank*
3,600 Phenix City, IDR for Mead, Series
93-A, AMT, 4.05%, 6/1/28, LOC:
Toronto Domimion Bank*........... 3,600
--------
4,900
--------
Idaho (1.3%):
7,915 Health Facility Authority Revenue,
St. Lukes Regional Medical Center
Project, 3.75%, 5/1/22, LOC:
Bayerische Landesbank*........... 7,915
--------
Kentucky (1.7%):
5,200 Lexington Fayette Urban County
Airport Revenue, AMT, 4.10%,
4/01/24, LOC: Credit Local De
France*.......................... 5,200
4,900 Lexington Fayette Urban County
Airport Revenue, 4.10%, 7/1/28,
MBIA*............................ 4,900
--------
10,100
--------
Michigan (0.4%):
2,500 State Strategic Fund, Detroit
Edison Project, 3.80%, 9/1/30,
LOC: Barclay's Bank Plc*......... 2,500
--------
New York (0.1%):
500 New York, GO, Series B, 4.10%,
10/1/21, FGIC*................... 500
--------
North Carolina (3.6%):
21,100 Person County Industrial and
Pollution Control Revenue, AMT,
3.95%, 11/1/16, LOC: SunTrust
Bank*............................ 21,100
--------
Ohio (0.0%):
200 State Air Quality Development
Authority, Cincinnati Gas &
Electric, 3.80%, 12/1/15, LOC:
J.P. Morgan*..................... 200
--------
Texas (1.3%):
3,300 Brazos River Authority, PCR, Texas
Utilities Electric Co. Project,
AMT, 3.90%, 6/1/30, AMBAC*....... 3,300
4,475 Sabine River Authority, PCR, Texas
Utilities Electric Co. Project,
Series C, 3.90%, 6/1/30, LOC:
Union Bank of Switzerland*....... 4,475
--------
7,775
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
DAILY DEMAND NOTES, CONTINUED:
Washington (0.1%):
$ 800 Health Care Facilities, Fred
Hutchinson, Series A, 3.75%,
1/1/18, LOC: Morgan Guaranty*.... $ 800
--------
Wyoming (0.1%):
800 Sublette County, PCR, Series B,
3.80%, 7/1/17, GTY: Exxon*....... 800
--------
Total Daily Demand Notes 56,590
--------
MONTHLY DEMAND NOTES (2.5%):
Indiana (2.5%):
14,800 Gary Environmental Improvement
Revenue, U.S. Steel Corp.
Project, 3.70%, 7/15/02, LOC:
Bank of Nova Scotia*............. 14,800
--------
Total Monthly Demand Notes 14,800
--------
MUNICIPAL NOTES (10.4%):
California (1.7%):
10,000 Los Angeles County Tax & Revenue
Anticipation Notes Series A,
4.50%, 6/30/99................... 10,080
--------
Colorado (0.8%):
5,000 State Of Colorado Transportation,
4.00, 6/25/99.................... 5,020
--------
Kentucky (1.2%):
7,000 Asset Liability Commission General
Fund, Trans 98-A, 4.50%,
6/25/99.......................... 7,061
--------
Ohio (1.0%):
5,900 Dublin Transportation System, GO,
3.62%, 12/17/98.................. 5,902
--------
Oregon (1.0%):
6,000 State Housing And Community
Services, 3.75%, 5/13/99......... 6,000
--------
Pennsylvania (0.8%):
5,000 Pennsylvania State University,
Series A, 4.50%, 3/30/99......... 5,034
--------
Tennessee (0.8%):
5,000 State Local Development Authority,
4.00%, 5/19/99................... 5,013
--------
Texas (0.6%):
3,500 State Tax & Revenue Anticipation
Notes, Series 97A, 4.75%,
8/31/98.......................... 3,505
--------
Wisconsin (2.5%):
15,000 State Operating Notes, 4.50%,
6/15/99.......................... 15,132
--------
Total Municipal Notes 62,747
--------
</TABLE>
Continued
10
<PAGE> 13
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
PUT BONDS (2.9%):
Arizona (1.5%):
$ 9,000 Cochise County, PCR, Arizona
Electric Power Corp., Series A,
AMT, 3.55%, 9/1/24............... $ 9,000
--------
Florida (1.0%):
6,000 Putnam County Development
Authority, Seminole Electric Co.,
3.65%, 12/15/09.................. 6,000
--------
North Dakota (0.4%):
2,600 Mercer County, Solid Waste Disposal
Revenue, National Rural Utility
Power Project, Series U, 3.80%,
12/1/18.......................... 2,600
--------
Total Put Bonds 17,600
--------
TAX FREE COMMERCIAL PAPER (18.2%):
Alabama (2.4%):
1,500 Phenix IDR, Mead Paper, AMT, 3.77%,
7/7/98, LOC: ABN AMRO*........... 1,500
2,000 Phenix IDR, Mead Paper, AMT, 3.70%.
7/15/98, LOC: ABN AMRO*.......... 2,000
5,600 Phenix IDR, Mead Paper, AMT, 3.45%,
7/31/98, LOC: ABN AMRO*.......... 5,600
3,000 Phenix IDR, Mead Paper, AMT, 3.65%,
8/18/98, LOC: ABN AMRO*.......... 3,000
2,400 Phenix IDR, Mead Paper, AMT, 3.80%,
8/24/98, LOC: ABN AMRO*.......... 2,400
--------
14,500
--------
Arizona (1.5%):
4,000 Mesa Municipal Development Corp.,
3.45%, 7/8/98, LOC: Westdeutsche
Landesbank*...................... 4,000
4,770 Mesa Municipal Development Corp.,
3.55%, 7/14/98, LOC: Westdeutsche
Landesbank*...................... 4,770
--------
8,770
--------
Colorado (1.3%):
1,400 Platte River Electric Revenue,
3.45%, 7/6/98, LOC: J.P.
Morgan*.......................... 1,400
2,000 Platte River Electric Revenue,
3.40%, 7/6/98, LOC: J.P.
Morgan*.......................... 2,000
4,400 Platte River Electric Revenue,
3.60%, 8/13/98, LOC: J.P.
Morgan*.......................... 4,400
--------
7,800
--------
Minnesota (0.4%):
1,000 Rochester Healthcare Facility
Revenue, 3.65%, 7/13/98.......... 1,000
1,700 Rochester Healthcare Facility
Revenue, 3.45%, 7/13/98.......... 1,700
--------
2,700
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER, CONTINUED:
Missouri (0.4%):
$ 2,500 State Environmental Authority,
Union Electric Co., 3.63%,
7/10/98, LOC: Union Bank of
Switzerland...................... $ 2,500
--------
North Carolina (1.4%):
8,300 Eastern Municipal Power, 3.40%,
7/21/98, LOC: Canadian Imperial
Bank of Commerce................. 8,300
--------
Pennsylvania (0.8%):
1,500 Delaware County, Philadelphia
Electric Co., 3.45%, 9/3/98,
FGIC............................. 1,500
3,300 Delaware County, Philadelphia
Electric Co., 3.40%, 9/3/98,
FGIC............................. 3,300
--------
4,800
--------
Texas (7.3%):
20,000 Brazos River Authority, Texas
Utilities Co., 3.50%, 8/7/98,
LOC: Canadian Imperial Bank of
Commerce:........................ 20,000
5,000 Brazos River Utilities, Texas
Utilities Co., 3.55%, 9/8/98,
LOC: Canadian Imperial Bank of
Commerce......................... 5,000
10,000 Public Finance Authority, 3.40%,
9/9/98, LOC: Union Bank of
Switzerland...................... 10,000
5,000 Public Finance Authority, GO,
Series 93A, 3.65%, 9/9/98, LOC:
Union Bank of Switzerland........ 5,000
3,400 Texas A&M, 3.40%, 7/9/98, LOC:
Union Bank of Switzerland........ 3,400
--------
43,400
--------
West Virginia (0.7%):
4,500 State Public Authority Energy
Revenue, Morgantown Assoc.
Project, AMT, 3.65%, 7/17/98,
LOC: Swiss Bank*................. 4,500
--------
Wisconsin (0.8%):
5,015 GO Series 97, 3.60%, 8/18/98....... 5,015
--------
Wyoming (1.2%):
2,000 Gillette Pollution Control Revenue,
AMT, 3.65%, 8/6/98, LOC: ABN
AMBRO*........................... 2,000
5,400 Sweetwater County, PCR, Series
88-A, 3.65%, 7/1/98, LOC: Union
Bank of Switzerland*............. 5,400
--------
7,400
--------
Total Tax Free Commercial Paper 109,685
--------
</TABLE>
Continued
11
<PAGE> 14
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES (58.4%):
Arkansas (1.8%):
$ 8,100 Clark County, Solid Waste Disposal
Revenue, Reynolds Metals Co.
Project, AMT, 3.65%, 8/1/22, LOC:
SunTrust Bank*................... $ 8,100
2,900 Clark County, Solid Waste Disposal
Revenue, AMT, 3.65%, 8/1/22, LOC:
SunTrust Bank*................... 2,900
--------
11,000
--------
Colorado (3.7%):
2,900 Housing Finance Authority, Pool I,
Series B, Coventry Village,
3.55%, 10/15/16, FNMA*........... 2,900
5,600 Student Obligation Bond Authority,
AMT, 3.50%, 7/1/20, SLMA*........ 5,600
13,900 Student Obligation Bond Authority,
Series 90-A, AMT, 3.50%, 9/1/24,
SLMA*............................ 13,900
--------
22,400
--------
District of Columbia (1.6%):
9,705 Metro Washington D.C. Airports
Authority Trust Receipts, 3.75%,
10/1/16, LIQ: Societe General*... 9,705
--------
Georgia (2.8%):
13,000 De Kalb Private Hospital Authority
Revenue, Egleston Children's
Hospital, Series A, 3.45%,
3/1/24, LOC: SunTrust Bank*...... 13,000
3,735 Gwinnett County Housing Authority,
Herrington Woods Apts., Series
96A, AMT, 3.65%, 9/15/26, LOC:
KeyBank*......................... 3,735
--------
16,735
--------
Illinois (9.2%):
11,100 Chicago O'Hare International
Airport Revenue, Second Lien,
Series B, AMT, 3.65%, 1/1/18,
LOC: Societe Generale*........... 11,100
10,000 Chicago School Board Of Education,
Series 3, 3.70%, 12/1/27,
AMBAC*........................... 10,000
5,200 Development Finance Authority
Revenue, Aurora Central Catholic
High School, 3.55%, 4/1/24, LOC:
Northern Trust................... 5,200
3,700 Development Finance Authority
Revenue, Presbyterian Home Lake
Forrest Place Project, 3.55%,
9/1/31, LOC: LaSalle National
Bank*............................ 3,700
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Illinois, continued:
$ 4,500 Development Finance Authority
Revenue, Roosevelt University
Project, 3.55%, 4/1/25, LOC:
American National Bank*.......... $ 4,500
5,800 Development Finance Authority
Revenue, Special Facility, Little
City Foundation, 3.55%, 2/1/19,
LOC: LaSalle National Bank*...... 5,800
1,620 Development Finance Authority
Revenue, St. Paul's House
Project, 3.55%, 2/1/25, LOC:
LaSalle National Bank*........... 1,620
3,000 Health Facility Authority Revenue,
Washington & Jane Smith Home,
3.55%, 7/1/26, LOC: Comerica
Bank*............................ 3,000
7,640 Jacksonville Industrial Project
Revenue, AGI, Inc. Project, AMT,
3.80%, 2/1/26, LOC: Bank of
America*......................... 7,640
1,100 Lombard IDR, Chicago Roll Co.
Project, 3.90%, 2/1/10, LOC:
American National Bank*.......... 1,100
2,000 Orland Hills, Multi Family Mortgage
Revenue, 88th Avenue Project,
3.55%, 12/1/04, LOC: LaSalle
National Bank*................... 2,000
--------
55,660
--------
Indiana (8.7%):
14,600 Health Facility Financing
Authority, Rehabilitation
Hospital, Inc., 3.50%, 11/1/20,
LOC: National Bank of Detroit*... 14,600
5,600 Indianapolis Economic Development
Revenue, Children's Museum
Project, 3.55%, 10/1/25, LOC:
National Bank of Detroit*........ 5,600
3,300 Jasper Economic Development
Revenue, Best Chairs, Inc.
Project, AMT, 3.75%, 3/1/19, LOC:
PNC Bank*........................ 3,300
16,200 Rockport, PCR, Indiana & Michigan
Electric Co., Series A, 3.65%,
8/1/14, LOC: Swiss Bank*......... 16,200
13,000 State Educational Authority
Revenue, Wesleyan University,
3.50%, 6/1/28, LOC: National Bank
of Detroit*...................... 13,000
--------
52,700
--------
</TABLE>
Continued
12
<PAGE> 15
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED
Kentucky (0.6%):
$ 3,500 Mayfield, League of Cities Lease
Finance Program 96, 3.70%,
7/1/26, LOC: PNC Bank*........... $ 3,500
--------
Michigan (7.8%):
20,500 Higher Education Student Loan,
Series B, AMT, 3.55%, 10/1/13,
AMBAC*........................... 20,500
10,000 Kent Hospital Authority Revenue,
Spectrum Health, Series B, 3.45%,
1/15/26, MBIA*................... 10,000
1,000 State Job Authority Revenue, 3.50%,
8/1/15, LOC: Rabo Bank*.......... 1,000
1,560 State Strategic Fund, Limited
Obligation, Wayne Disposal
Oakland Project, AMT, 3.70%,
3/1/05, LOC: Credit Suisse-First
Boston*.......................... 1,560
13,940 Wayne County Airport Revenue
(Detroit Airport), Series B, AMT,
3.50%, 12/1/16, LOC: Bayerische
Landesbank*...................... 13,940
--------
47,000
--------
New York (1.7%):
10,000 Long Island Power Authority,
Electric System Revenue, Series
1, 3.50%, 5/1/33, LOC:
Westdeutsche and Bayerische
Landesbank*...................... 10,000
--------
North Carolina (0.8%):
5,000 Mecklenburg County, Series C,
3.50%, 2/1/17, LOC: First Union
National Bank*................... 5,000
--------
Ohio (6.8%):
8,600 Butler County Multi-Family Revenue,
3.50%, 11/15/30, FNMA*........... 8,600
8,800 State Air Quality Development
Authority Revenue, JMG Funding
Ltd. Partnership, Series A, AMT,
3.60%, 4/1/28, LOC: Societe
Generale*........................ 8,800
3,700 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, AMT, 3.60%, 4/1/29,
LOC: Societe Generale*........... 3,700
20,000 Student Loan Funding Corp.,
Cincinnati, Series 98-A2, AMT,
3.60%, 8/1/10, LOC: Bank of
America*......................... 20,000
--------
41,100
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Pennsylvania (2.3%):
$ 2,500 Philadelphia Redevelopment
Authority Revenue, 3.65%,
12/1/03, LOC: PNC Bank*.......... $ 2,500
6,300 State Economic Development Finance
Authority Revenue, Series 98D,
3.75%, 6/1/10 LOC: PNC Bank*..... 6,300
4,800 State Higher Education Authority
Revenue, 3.50%, 3/1/26 LOC: First
Union National Bank*............. 4,800
--------
13,600
--------
South Carolina (0.3%):
1,700 Cherokee County, Industrial
Revenue, Oshkosh Truck Corp.
Project, AMT, 3.80%, 8/1/19, LOC:
Bank of Nova Scotia*............. 1,700
--------
Tennessee (2.4%):
10,500 Montgomery County Public Building,
3.60%, 7/1/19, LOC:
NationsBank*..................... 10,500
3,800 Oak Ridge Industrial Development
Board, Economic Development
Revenue, Limited Obligation,
3.60%, 5/1/09, LOC: ABN AMRO*.... 3,800
--------
14,300
--------
Texas (6.8%):
14,100 Capital Health Facilities
Development Corp., Island on Lake
Travis Ltd. Project, AMT, 3.55%,
12/1/16, LOC: Credit Suisse-First
Boston*.......................... 14,100
17,800 Panhandle Plains Higher Education
Inc., Student Loan Revenue,
Series A, AMT, 3.50% 6/1/21,
SLMA*............................ 17,800
9,400 Panhandle Plains Higher Education
Inc., Student Loan Revenue,
Series A, AMT, 3.50%, 6/1/23,
SLMA*............................ 9,400
--------
41,300
--------
</TABLE>
Continued
13
<PAGE> 16
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
West Virginia (1.1%):
$ 2,300 Marion County Community Solid Waste
Disposal Facility Revenue, Grant
Town, AMT, 3.65%, 10/1/17, LOC:
National Westminister*........... $ 2,300
4,500 Marion County Community Solid Waste
Disposal Facility Revenue, Grant
Town, AMT, 3.50%, 10/1/17, LOC:
National Westminister*........... 4,500
--------
6,800
--------
Total Weekly Demand Notes 352,500
--------
Total (Amortized Cost $613,922) (a) $613,922
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $602,936.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity agreements. The interest rate,
which will change periodically, is based upon an index of market rates. The
rate reflected on the Schedule of Portfolio Investments is the rate in effect
at June 30, 1998.
<TABLE>
<S> <C>
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
GO General Obligation
GTY Guaranty
FNMA Federal National Mortgage Association
IDR Industrial Development Revenue
LIQ Liquidity Agreement
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
SLMA Student Loan Marketing Association
</TABLE>
See notes to financial statements.
14
<PAGE> 17
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
ANTICIPATION NOTES (13.0%):
Ohio (13.0%):
$2,200 Butler County, GO, BAN, 4.10%,
7/8/99........................... $ 2,208
2,000 Butler County, Sewer System, GO,
BAN, 4.29%, 8/6/98............... 2,001
3,000 Dublin Transportation System,
Series A, GO, 3.62%, 12/17/98.... 3,001
1,000 Lucas County Metro Sewer & Water,
GO, 4.11%, 10/21/98.............. 1,001
1,000 Ontario Village Board, GO, BAN,
4.20%, 12/23/98.................. 1,002
1,500 Pickerington School District, GO,
BAN, 4.07%, 8/3/98............... 1,501
1,100 Union County, GO, Colt Waterline
Construction, Series B, 4.01%,
6/17/99.......................... 1,103
3,250 University of Cincinnati, General
Receipts, BAN, Series AJ, 3.80%,
3/1/99........................... 3,254
--------
Total Anticipation Notes 15,071
--------
DAILY DEMAND NOTES (12.4%):
Ohio (12.4%):
400 Paulding, Solid Waste, Lafarge
Corp., 4.00%, 8/1/26, LOC: Royal
Bank of Canada*.................. 400
4,200 State Air Quality Development
Authority, Cincinnati Gas &
Electric, 3.80%, 12/1/15, LOC:
J.P. Morgan*..................... 4,200
300 State Air Quality Development
Authority, Cincinnati Gas &
Electric, Series A, 3.80%,
12/1/15, LOC: Union Bank of
Switzerland*..................... 300
2,400 State Air Quality Development
Authority, Cincinnati Gas &
Electric, Series A, 3.70%,
9/1/30, LOC: ABN AMRO Bank*...... 2,400
4,400 State PCR, British Petroleum,
4.00%, 5/1/22*................... 4,400
2,700 Twinsburg, IDR, United Stationers
Project, 3.95%, 12/1/11, LOC: PNC
Bank*............................ 2,700
--------
Total Daily Demand Notes 14,400
--------
MONTHLY DEMAND NOTES (4.2%):
Ohio (4.2%):
4,900 Housing Finance Agency, Kenwood
Retirement Project, 3.75%,
12/1/15, LOC: Morgan Guaranty*... 4,900
--------
Total Monthly Demand Notes 4,900
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS (2.9%):
Ohio (2.9%):
$2,570 Hamilton County, Sewer Revenue,
Series A, 4.50%, 12/1/98, FGIC... $ 2,579
830 State Infrastructure, GO, Series R,
4.00%, 8/1/98.................... 830
--------
Total Municipal Bonds 3,409
--------
TAX FREE COMMERCIAL PAPER (7.1%):
Ohio (7.1%):
1,500 State Air Quality Development
Authority, Cleveland Electric
Illuminating Co., Series B,
3.75%, 7/9/98, FGIC.............. 1,500
2,500 State Air Quality Development
Authority, Cleveland Electric
Illuminating Co., Series B,
3.60%, 9/10/98, FGIC............. 2,500
2,500 State Air Quality Development
Authority, Cleveland Electric
Illuminating Co., Series B,
3.60%, 7/10/98, FGIC............. 2,500
300 Toledo-Lucas County, CSX
Transportation, 3.65%, 9/15/98,
LOC: Bank of Nova Scotia......... 300
1,500 Toledo-Lucas County, CSX
Transportation, 3.60%, 9/15/98,
LOC: Bank of Nova Scotia......... 1,500
--------
Total Tax Free Commercial Paper 8,300
--------
WEEKLY DEMAND NOTES (62.1%):
Ohio (62.1%):
5,600 Butler County, Meadow Ridge
Apartments, AMT, 3.50%, 11/15/30,
FNMA*............................ 5,600
4,000 Cleveland Airport System, Series D,
Airport Revenue, AMT, 3.60%,
1/1/27, LOC: Toronto Dominion
Bank*............................ 4,000
6,000 Clinton County, Hospital Revenue,
3.65%, 6/1/28, LOC: Fifth Third
Bank*............................ 6,000
2,000 Cuyahoga County, Hospital Revenue,
Cleveland Clinic Foundation,
Series A, 3.50%, 1/1/26, LOC:
Morgan Guaranty*................. 2,000
300 Cuyahoga County, IDR, Allen Group,
Inc., 3.50%, 4/1/12, LOC:
Dresdner Bank AG*................ 300
3,500 Franklin County, Hospital Revenue,
Holy Cross Health Systems, 3.45%,
6/1/16, LIQ: Morgan Guaranty*.... 3,500
1,500 Franklin County, Hospital Revenue,
Lutheran City, Inc. Project,
3.55%, 5/1/15, LOC: National Bank
of Detroit*...................... 1,500
</TABLE>
Continued
15
<PAGE> 18
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Ohio Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Ohio, continued:
$1,300 Franklin County, Inland Products,
Inc., 3.75%, 6/1/04, LOC: PNC
Bank*............................ $ 1,300
2,000 Geauga County, IDR, General Signal
Corp., 3.65%, 4/1/04, LOC:
Wachovia Bank*................... 2,000
2,000 Hamilton County, Hospital
Facilities Revenue, Bethesda
Hospital, 3.40%, 2/15/24, LOC:
Rabobank Nederland*.............. 2,000
1,500 Hamilton County, Hospital
Facilities Revenue, Children's
Hospital Medical Center, 3.60%,
5/15/17, LOC: PNC Bank*.......... 1,500
5,125 Hamilton County, Hospital
Facilities Revenue, Health
Alliance of Cincinnati, Series B,
3.55%, 1/1/18, MBIA*............. 5,125
1,000 Hamilton County, Hospital
Facilities Revenue, Health
Alliance, Series F, 3.55%,
1/1/18, MBIA*.................... 1,000
3,000 Housing Finance Agency, Spring
Valley Apartments, 3.65%,
12/15/29, LOC: Key Bank*......... 3,000
6,050 Ohio State University, General
Receipts, 3.40%, 12/1/17*........ 6,050
560 Ohio State University, General
Receipts, Series B, 3.45%,
12/1/06, SBPA: National
Westminister Bank*............... 560
1,000 Ross County, Ohio Hospital
Facilities, Medical Center
Project, 3.55%, 12/1/20, LOC:
Fifth Third Bank*................ 1,000
3,600 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, AMT, 3.60%, 4/1/29,
LOC: Societe Generale*........... 3,600
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ---------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Ohio, continued:
$2,100 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, Series A, AMT,
3.60%, 4/1/28, LOC: Societe
Generale*........................ $ 2,100
1,700 State Air Quality Development
Revenue Bond, Timken Co. Project,
AMT, 3.60%, 6/1/01, LOC: Credit
Suisse-First Boston*............. 1,700
1,300 State Higher Educational
Facilities, Oberlin College,
3.40%, 10/1/15, SBPA: Morgan
Guaranty*........................ 1,300
7,000 State Solid Waste Disposal Revenue,
USG Corp. Project, 3.60%, 8/1/32,
LOC: Chase Mahattan Bank*........ 7,000
2,000 State Water Development Authority,
Cleveland Electric, Series B,
3.25%, 8/1/20, LOC: First
National Bank of Chicago*........ 2,000
4,000 State Water Development Authority,
Timken Co. Project, 3.60%,
6/1/01, LOC: Wachovia Bank*...... 4,000
2,000 Student Loan Funding Corp., Series
1983-A, 4.40%, 12/29/98, LOC:
Bank of America*................. 2,000
2,100 Wooster, IDR, Allen Group, Inc.,
3.65%, 12/1/10, LOC: National
Bank of Detroit*................. 2,100
--------
Total Weekly Demand Notes 72,235
--------
Total (Amortized Cost $118,315)(a) $118,315
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $116,324.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity agreements. The interest rate,
which will change periodically, is based an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
June 30, 1998.
<TABLE>
<S> <C>
AMT Alternative Minimum Tax Paper
BAN Bond Anticipation Notes
FGIC Insured by Financial Guaranty Insurance Corp.
FNMA Insured by Federal National Mortgage Association
GO General Obligation
IDR Industrial Development Revenue
LIQ Liquidity Agreement
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
SBPA Stand by Bond Purchase Agreement
</TABLE>
See notes to financial statements.
16
<PAGE> 19
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1998
(Amounts in Thousands, except per share amounts)
<TABLE>
<CAPTION>
U.S. TREASURY OHIO
SECURITIES MUNICIPAL MUNICIPAL
MONEY MARKET PRIME MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost................ $ 756,587 $3,107,323 $613,922 $118,315
Repurchase agreements, at cost................ 3,392,616 102,434 -- --
---------- ---------- -------- --------
Total......................................... 4,149,203 3,209,757 613,922 118,315
Cash.......................................... -- 1 4,548 --
Interest receivable........................... 11,892 30,105 2,781 576
Receivable from brokers for investments
sold........................................ -- -- 20,790 --
Prepaid expenses and other assets............. 60 18 3 1
---------- ---------- -------- --------
TOTAL ASSETS.................................. 4,161,155 3,239,881 642,044 118,892
---------- ---------- -------- --------
LIABILITIES:
Cash overdraft................................ -- -- -- 2
Dividends payable............................. 15,780 13,774 1,562 304
Payable to brokers for investments
purchased................................... -- -- 37,293 2,209
Payable for return of collateral received for
securities on loan.......................... 255,663 -- -- --
Accrued expenses and other payables:
Investment advisory fees.................. 1,008 842 126 24
Administration fees....................... 466 416 78 9
12b-1 fees................................ 180 126 22 8
Other..................................... 918 822 27 12
---------- ---------- -------- --------
TOTAL LIABILITIES............................. 274,015 15,980 39,108 2,568
---------- ---------- -------- --------
NET ASSETS:
Capital....................................... 3,886,907 3,223,805 603,068 116,407
Undistributed (distributions in excess of) net
investment income........................... 193 7 (130) (75)
Accumulated undistributed net realized gains
(losses) from investment transactions....... 40 89 (2) (8)
---------- ---------- -------- --------
NET ASSETS.................................... $3,887,140 $3,223,901 $602,936 $116,324
========== ========== ======== ========
NET ASSETS:
Fiduciary................................. $3,025,608 $2,616,698 $498,127 $ 77,224
Class A................................... 861,350 605,291 104,809 39,100
Class B................................... 181 1,912 -- --
Class C................................... 1 -- -- --
---------- ---------- -------- --------
Total......................................... $3,887,140 $3,223,901 $602,936 $116,324
========== ========== ======== ========
OUTSTANDING UNITS OF BENEFICIAL INTEREST:
Fiduciary................................. 3,025,409 2,616,620 498,245 77,260
Class A................................... 861,313 605,275 104,821 39,122
Class B................................... 181 1,912 -- --
Class C................................... 1 -- -- --
---------- ---------- -------- --------
Total......................................... 3,886,904 3,223,807 603,066 116,382
========== ========== ======== ========
Net asset value--offering and redemption price
per share (Fiduciary, Class A, Class B, and
Class C shares)............................. $1.00 $1.00 $1.00 $1.00
========== ========== ======== ========
</TABLE>
See notes to financial statements.
17
<PAGE> 20
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. TREASURY OHIO
SECURITIES MUNICIPAL MUNICIPAL
MONEY MARKET PRIME MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................... $184,497 $189,463 $21,708 $3,737
Dividend income........................... -- -- 165 80
Income from securities lending............ 150 -- -- --
-------- -------- ------- ------
Total Income.............................. 184,647 189,463 21,873 3,817
-------- -------- ------- ------
EXPENSES:
Investment advisory fees.................. 11,575 11,482 2,087 313
Administration fees....................... 5,416 5,374 977 171
12b-1 fees (Class A)...................... 1,955 1,399 258 97
12b-1 fees (Class B)...................... 1 10 -- --
Custodian and accounting fees............. 355 292 51 12
Legal and audit fees...................... 176 148 22 6
Organization costs........................ -- -- -- 1
Trustees' fees and expenses............... 104 92 11 1
Transfer agent fees....................... 638 391 33 22
Registration and filing fees.............. 881 721 105 17
Printing costs............................ 342 299 34 4
Other..................................... 381 151 13 2
-------- -------- ------- ------
Total expense before waivers.............. 21,824 20,359 3,591 646
Less waivers.............................. (2,892) (2,237) (677) (136)
-------- -------- ------- ------
Net Expenses.............................. 18,932 18,122 2,914 510
-------- -------- ------- ------
Net Investment Income..................... 165,715 171,341 18,959 3,307
-------- -------- ------- ------
REALIZED GAINS (LOSSES) FROM INVESTMENT
TRANSACTIONS:
Net realized gains (losses) from
investment transactions................. 40 89 11 8
-------- -------- ------- ------
Net increase in net assets resulting from
operations.............................. $165,755 $171,430 $18,970 $3,315
======== ======== ======= ======
</TABLE>
See notes to financial statements.
18
<PAGE> 21
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES PRIME
MONEY MARKET FUND MONEY MARKET FUND
-------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................... $ 165,715 $ 121,830 $ 171,341 $ 140,355
Net realized gains (losses) from
investment transactions................ 40 190 89 27
----------- ----------- ----------- -----------
Change in net assets resulting from
operations.................................. 165,755 122,020 171,430 140,382
----------- ----------- ----------- -----------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income............... (129,665) (105,790) (144,494) (124,100)
From net realized gains from investment
transactions........................... -- (5) -- --
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............... (36,044) (16,039) (26,806) (16,246)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income............... (6) (1) (41) (9)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income............... --(a) -- -- --
----------- ----------- ----------- -----------
Change in net assets from shareholder
distributions............................... (165,715) (121,835) (171,341) (140,355)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.............. 8,548,866 6,413,072 7,765,924 6,677,852
Dividends reinvested..................... 11,731 9,274 18,174 16,726
Cost of shares redeemed.................. (7,447,086) (5,604,396) (7,457,318) (6,299,509)
----------- ----------- ----------- -----------
Change in net assets from share
transactions................................ 1,113,511 817,950 326,780 395,069
----------- ----------- ----------- -----------
Change in Net Assets.......................... 1,113,551 818,135 326,869 395,096
NET ASSETS:
Beginning of period...................... 2,773,589 1,955,454 2,897,032 2,501,936
----------- ----------- ----------- -----------
End of period............................ $ 3,887,140 $ 2,773,589 $ 3,223,901 $ 2,897,032
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................................... 8,548,866 6,413,072 7,765,927 6,677,852
Reinvested............................... 11,731 9,274 18,174 16,726
Redeemed................................. (7,447,086) (5,604,396) (7,457,319) (6,299,509)
----------- ----------- ----------- -----------
Change in shares.............................. 1,113,511 817,950 326,782 395,069
=========== =========== =========== ===========
</TABLE>
- ------------
(a) Amount is less than $1,000.
See notes to financial statements.
19
<PAGE> 22
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
MUNICIPAL OHIO MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
-------------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
----------- ----------- --------- ---------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income....................... $ 18,959 $ 16,457 $ 3,307 $ 2,727
Net realized gains (losses) from investment
transactions.............................. 11 (10) 8 (15)
----------- ----------- --------- ---------
Change in net assets resulting from operations... 18,970 16,447 3,315 2,712
----------- ----------- --------- ---------
DISTRIBUTIONS TO FIDUCIARY SHAREHOLDERS:
From net investment income.................. (16,050) (15,228) (2,208) (1,662)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income.................. (2,909) (1,229) (1,099) (1,065)
----------- ----------- --------- ---------
Change in net assets from shareholder
distributions.................................. (18,959) (16,457) (3,307) (2,727)
----------- ----------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................. 1,494,647 1,311,970 312,708 359,395
Dividends reinvested........................ 1,841 1,285 1,062 1,067
Cost of shares redeemed..................... (1,409,168) (1,308,167) (284,375) (370,573)
----------- ----------- --------- ---------
Change in net assets from share transactions..... 87,320 5,088 29,395 (10,111)
----------- ----------- --------- ---------
Change in Net Assets............................. 87,331 5,078 29,403 (10,126)
NET ASSETS:
Beginning of period......................... 515,605 510,527 86,921 97,047
----------- ----------- --------- ---------
End of period............................... $ 602,936 $ 515,605 $ 116,324 $ 86,921
=========== =========== ========= =========
SHARE TRANSACTIONS:
Issued...................................... 1,494,647 1,311,970 312,708 359,395
Reinvested.................................. 1,841 1,285 1,062 1,067
Redeemed.................................... (1,409,168) (1,308,167) (284,375) (370,573)
----------- ----------- --------- ---------
Change in shares................................. 87,320 5,088 29,395 (10,111)
=========== =========== ========= =========
</TABLE>
See notes to financial statements.
20
<PAGE> 23
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1998
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company
established as a Massachusetts business trust. The accompanying financial
statements and financial highlights are those of the U.S. Treasury Securities
Money Market Fund, the Prime Money Market Fund, the Municipal Money Market
Fund, and the Ohio Municipal Money Market Fund (individually, a "Fund";
collectively, the "Funds") only. Each Fund is a diversified mutual fund,
except the Ohio Municipal Money Market Fund which is non-diversified.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
U.S. Treasury Securities Money Market Fund Current income with liquidity and stability of
principal.
Prime Money Market Fund Current income with liquidity and stability of
principal.
Municipal Money Market Fund As high a level of current interest income
exempt from Federal income tax as is consistent
with capital preservation and stability of
principal.
Ohio Municipal Money Market Fund As high a level of current interest income
exempt from Federal income tax and Ohio
personal income tax as is consistent with
capital preservation and stability of
principal.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Securities are valued utilizing the amortized cost method permitted in
accordance with Rule 2a-7 under the 1940 Act. Under the amortized cost
method, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the Funds may not (a) purchase any
instrument with a remaining maturity greater than 397 days unless such
instrument is subject to a demand feature, or (b) maintain a
dollar-weighted average maturity which exceeds 90 days.
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements with institutions that are
deemed by Banc One Investment Advisors Corporation (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 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.
Continued
21
<PAGE> 24
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net
realized gains or losses on sales of securities are determined on the
specific identification cost method. Interest income and expenses are
recognized on the accrual basis. Interest income, including any discount
or premium, is accrued as earned using the effective interest method.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities
in which they are invested pursuant to agreements requiring that the loan
be continuously secured by cash, U.S. Government or U.S. Government
Agency securities, shares of an investment trust or mutual fund, or any
combination of cash and such securities as collateral equal at all times
to at least 100% of the market value plus accrued interest on the
securities lent. The Funds continue to earn interest on securities lent
while simultaneously seeking to earn interest on the investment of
collateral. Collateral is marked to market daily to provide a level of
collateral at least equal to the market value of securities lent. There
may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers deemed by the
Advisor to be of good standing and creditworthy under guidelines
established by the Board of Trustees and when, in the judgment of the
Advisor, the consideration which can be earned currently from such
securities loans justifies the attendant risks. Loans are subject to
termination by the Funds or the borrower at any time, and are, therefore,
not considered to be illiquid investments. As of June 30, 1998, the
following Fund had securities with the following amortized cost on loan
(amount in thousands):
<TABLE>
<CAPTION>
AMORTIZED COST AMORTIZED COST
OF COLLATERAL OF LOANED SECURITIES
-------------- --------------------
<S> <C> <C>
U.S. Treasury Securities Money Market Fund................ $255,663 $250,570
</TABLE>
The loaned securities were fully collateralized by cash and U.S.
Government securities as of June 30, 1998.
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.
Net income for this purpose consists of interest accrued and discount
earned (including both original issue discount and market discount) less
amortization of any market premium and accrued expenses. Net realized
capital gains, if any, are distributed at least annually. Dividends are
declared separately for each class. No class has preferential dividend
rights; differences in per share dividend rates are due to differences in
separate class expenses.
Net investment income and net capital gain distributions are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of expiring capital loss carryforwards and deferrals
of certain losses. Permanent book and tax differences, if any, have been
reclassified among the components of net assets.
Continued
22
<PAGE> 25
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
FEDERAL INCOME TAXES
Each Fund intends to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code,
and to make distributions of net investment income and net realized
capital gains sufficient to relieve it from all, or substantially all,
federal income taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value, which may, without shareholder approval, be divided into an
unlimited number of series of such shares and any series may be classified or
reclassified into one or more classes. The Trust is registered to offer forty
series and five classes of shares: Fiduciary Class, Class A, Class B, Class C
and Service Class. Currently, the Trust consists of thirty-three active
funds. The Funds are each authorized to issue Fiduciary Class, Class A and
Class C Shares. In addition, the U.S. Treasury Securities Money Market Fund
and the Prime Money Market Fund are authorized to issue Class B and Service
Class Shares. As of June 30, 1998 there were no shareholders in Class C
(except for the U.S. Treasury Securities Money Market Fund) or the Service
Class. Shareholders are entitled to one vote for each full share held and
will vote in the aggregate and not by class or series, except as otherwise
expressly required by law or when the Board of Trustees has determined that
the matter to be voted on affects only the interest of shareholders of a
particular class or series. The following is a summary of transactions in
Fund shares for the fiscal years ending June 30, 1998 and 1997:
Continued
23
<PAGE> 26
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES PRIME MONEY
MONEY MARKET FUND MARKET FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued............................. $6,794,618 $ 4,920,570 $5,665,895 $ 4,681,923
Dividends reinvested.................................... 443 521 1,891 1,986
Cost of shares redeemed................................. (6,012,860) (4,522,461) (5,614,930) (4,306,729)
----------- ----------- ----------- -----------
Change in net assets from Fiduciary share
transactions.......................................... 782,201 398,630 52,856 377,180
=========== =========== =========== ===========
CLASS A SHARES:
Proceeds from shares issued............................. $1,753,840 $ 1,492,429 $2,096,713 $ 1,994,727
Dividends reinvested.................................... 11,283 8,752 16,253 14,734
Cost of shares redeemed................................. (1,433,946) (1,081,910) (1,840,335) (1,992,191)
----------- ----------- ----------- -----------
Change in net assets from
Class A share transactions............................ $ 331,177 $ 419,271 $ 272,631 $ 17,270
=========== =========== =========== ===========
CLASS B SHARES:
Proceeds from shares issued............................. $ 407 $ 73 $ 3,316 $ 1,202
Dividends reinvested.................................... 5 1 30 6
Cost of shares redeemed................................. (280) (25) (2,053) (589)
----------- ----------- ----------- -----------
Change in net assets from
Class B share transactions............................ $ 132 $ 49 $ 1,293 $ 619
=========== =========== =========== ===========
CLASS C SHARES:
Proceeds from shares issued............................. $ 1
Dividends reinvested.................................... --
Cost of shares redeemed................................. --
-----------
Change in net assets from Class C share transactions.... $ 1
===========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.................................................. 6,794,618 4,920,570 5,665,897 4,681,923
Reinvested.............................................. 443 521 1,891 1,986
Redeemed................................................ (6,012,860) (4,522,461) (5,614,931) (4,306,729)
----------- ----------- ----------- -----------
Change in Fiduciary Shares.............................. 782,201 398,630 52,857 377,180
=========== =========== =========== ===========
CLASS A SHARES:
Issued.................................................. 1,753,840 1,492,429 2,096,713 1,994,727
Reinvested.............................................. 11,283 8,752 16,253 14,734
Redeemed................................................ (1,433,946) (1,081,910) (1,840,335) (1,992,191)
----------- ----------- ----------- -----------
Change in Class A Shares................................ 331,177 419,271 272,631 17,270
=========== =========== =========== ===========
CLASS B SHARES:
Issued.................................................. 407 73 3,317 1,202
Reinvested.............................................. 5 1 30 6
Redeemed................................................ (280) (25) (2,053) (589)
----------- ----------- ----------- -----------
Change in Class B Shares................................ 132 49 1,294 619
=========== =========== =========== ===========
CLASS C SHARES:
Issued.................................................. 1
Reinvested.............................................. --
Redeemed................................................ --
-----------
Change in Class C Shares................................ 1
===========
</TABLE>
Continued
24
<PAGE> 27
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
(Amounts in Thousands)
MUNICIPAL MONEY MARKET OHIO MUNICIPAL
FUND MONEY MARKET FUND
------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
FIDUCIARY SHARES:
Proceeds from shares issued............................. $1,087,776 $ 1,104,184 $ 199,296 $ 178,921
Dividends reinvested.................................... 171 138 55 87
Cost of shares redeemed................................. (1,057,248) (1,096,700) (178,572) (178,473)
----------- ----------- ----------- -----------
Change in net assets from
Fiduciary share transactions.......................... $ 30,699 $ 7,622 $ 20,779 $ 535
=========== =========== =========== ===========
CLASS A SHARES:
Proceeds from shares issued............................. $ 406,871 $ 207,786 $ 113,412 $ 180,474
Dividends reinvested.................................... 1,670 1,147 1,007 980
Cost of shares redeemed................................. (351,920) (211,467) (105,803) (192,100)
----------- ----------- ----------- -----------
Change in net assets from
Class A share transactions.......................... $ 56,621 $ (2,534) $ 8,616 $ (10,646)
=========== =========== =========== ===========
SHARE TRANSACTIONS:
FIDUCIARY SHARES:
Issued.................................................. 1,087,776 1,104,184 199,296 178,921
Reinvested.............................................. 171 138 55 87
Redeemed................................................ (1,057,248) (1,096,700) (178,572) (178,473)
----------- ----------- ----------- -----------
Change in Fiduciary Shares.............................. 30,699 7,622 20,779 535
=========== =========== =========== ===========
CLASS A SHARES:
Issued.................................................. 406,871 207,786 113,412 180,474
Reinvested.............................................. 1,670 1,147 1,007 980
Redeemed................................................ (351,920) (211,467) (105,803) (192,100)
----------- ----------- ----------- -----------
Change in Class A Shares................................ 56,621 (2,534) 8,616 (10,646)
=========== =========== =========== ===========
</TABLE>
Continued
25
<PAGE> 28
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and the Advisor, are parties to an investment advisory agreement
under which the Advisor is entitled to receive an annual fee, computed daily
and paid monthly, equal to 0.35% of the average daily net assets of the U.S.
Treasury Securities Money Market Fund, the Prime Money Market Fund and the
Municipal Money Market Fund and 0.30% of the average daily net assets of the
Ohio Municipal Money Market Fund.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administration agreement under which the Administrator provides services for
a fee that is computed daily and paid monthly, at an annual rate of 0.20% on
each Fund's average daily net assets on the first $1.5 billion of Trust net
assets (excluding the Investor Growth Fund, the Investor Growth & Income
Fund, the Investor Conservative Growth Fund and the Investor Balanced Fund
(the "Investor Funds") and the Treasury Only Money Market Fund and the
Government Money Market Fund (the "Institutional Money Market Funds")); 0.18%
on the next $0.5 billion of Trust net assets (excluding the Investor Funds
and the Institutional Money Market Funds); and 0.16% on Trust net assets
(excluding the Investor Funds and the Institutional Money Market Funds) over
$2 billion. The 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 Shares, Class B Shares, Class C Shares and Service
Class Shares are subject to distribution and shareholder services plans (the
"Plans") pursuant to Rule 12b-1 under the 1940 Act. As provided in the Plans,
the Trust will pay the Distributor a fee of 0.25% of the average daily net
assets of Class A shares of each of the Funds, 1.00% of the average daily net
assets of Class B and Class C Shares and 0.75% of the average daily net
assets of the Service Class Shares of each of the Funds. The Distributor has
voluntarily agreed to limit payments under the Plans to 0.55% of average
daily net assets of the Service Class Shares of each Fund. Up to 0.25% of the
fees payable under the Plans may be used as compensation of shareholder
services by the Distributor and/or financial institutions and intermediaries.
Fees paid under the Plans may be applied by the Distributor toward (i)
compensation for its services in connection with distribution assistance or
provision of shareholder services; or (ii) payments to financial institutions
and intermediaries such as banks (including affiliates of the 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.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
The Advisor, Administrator and the Distributor voluntarily agreed to waive a
portion of their fees. For the year ended June 30, 1998, fees in the
following amounts were waived from the Funds (amounts in thousands):
Continued
26
<PAGE> 29
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1998
<TABLE>
<CAPTION>
INVESTMENT 12B-1 FEES
ADVISORY FEES ADMINISTRATION WAIVED
WAIVED FEES WAIVED CLASS A
------------- -------------- ----------
<S> <C> <C> <C>
U.S. Treasury Securities Money Market Fund................. $2,237 $570 $ 85
Prime Money Market Fund.................................... 1,675 500 62
Municipal Money Market Fund................................ 596 68 13
Ohio Municipal Money Market Fund........................... 60 72 4
</TABLE>
5. CONCENTRATION OF CREDIT RISK:
The Ohio Municipal Money Market Fund invests primarily in debt obligations
issued by the State of Ohio and its political subdivisions, agencies and
public authorities to obtain funds for various public purposes. The Fund is
more susceptible to economic and political factors adversely affecting
issuers of Ohio's specific municipal securities than are municipal bond funds
that are not concentrated in these issuers to the same extent.
6. FEDERAL TAX INFORMATION (UNAUDITED):
At June 30, 1998, the following funds had capital loss carryforwards which
are available to offset future capital gains if any (amounts in thousands):
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD EXPIRES
------------ -------
<S> <C> <C>
Municipal Money Market Fund................................. $2 2005
Ohio Municipal Money Market Fund............................ 8 2005
</TABLE>
Distributions paid from tax-exempt income during the fiscal year ended June
30, 1998 are as follows (amounts in thousands):
<TABLE>
<S> <C>
Municipal Money Market Fund................................. $18,880
Ohio Municipal Money Market Fund............................ 3,242
</TABLE>
7. SUBSEQUENT EVENTS:
On May 21, 1998, the Board of Trustees approved an agreement and plan of
reorganization and liquidation ("the Plan") with the Marquis Family of Funds
(the "Marquis Funds"). Under the Plan, the assets and liabilities of each
Marquis fund were transferred to a comparable One Group fund. Shares of the
comparable One Group fund were distributed to the Marquis shareholders in a
complete liquidation of each Marquis fund. A special Shareholder Meeting to
approve the plan was held on July 30, 1998. In a tax-free exchange on August
10, 1998, net assets of the Marquis funds were exchanged for shares of a
corresponding fund of The One Group as follows (amounts in thousands):
<TABLE>
<CAPTION>
SHARES NET ASSETS
ONE GROUP FUND ISSUED MARQUIS FUND CONVERTED
-------------- --------- ------------ ----------
<S> <C> <C> <C>
U.S. Treasury Securities Money Market
Fund............................... 1,232,968 Treasury Securities Money Market Fund $1,232,968
Municipal Money Market Fund.......... 161,019 Tax Exempt Money Market Fund 161,019
</TABLE>
Continued
27
<PAGE> 30
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS JUNE 30, 1998
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
----------------------------------------------------------------
FIDUCIARY
----------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- --------
Investment Activities:
Net investment income............ 0.051 0.050 0.052 0.050 0.030
---------- ---------- ---------- ---------- --------
Less Distributions:
Net investment income............ (0.051) (0.050)(a) (0.052) (0.050) (0.030)
---------- ---------- ---------- ---------- --------
NET ASSET VALUE,
END OF PERIOD.................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ========
Total Return....................... 5.19% 5.07% 5.34% 5.07% 3.01%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period...... $3,025,608 $2,243,376 $1,844,590 $1,178,091 $969,326
Ratio of expenses to average net
assets........................ 0.52% 0.46% 0.42% 0.41% 0.40%
Ratio of net investment income to
average net assets............ 5.07% 4.95% 5.17% 4.96% 3.02%
Ratio of expenses to average net
assets*....................... 0.60% 0.57% 0.56% 0.59% 0.58%
Ratio of net investment income to
average net assets*........... 4.99% 4.84% 5.03% 4.78% 2.84%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Includes $.000002 short term capital gain.
See notes to financial statements.
28
<PAGE> 31
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
------------------------------------------------------
CLASS A
------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD........................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- ------- -------
Investment Activities:
Net investment income...................... 0.048 0.047 0.050 0.047 0.027
-------- -------- -------- ------- -------
Less: Distributions:
Net investment income...................... (0.048) (0.047)(a) (0.050) (0.047) (0.027)
-------- -------- -------- ------- -------
NET ASSET VALUE,
END OF PERIOD.............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======= =======
Total Return................................. 4.92% 4.81% 5.08% 4.81% 2.76%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......... $861,350 $530,164 $110,864 $98,723 $53,423
Ratio of expenses to average net assets.... 0.77% 0.72% 0.67% 0.66% 0.63%
Ratio of net investment income to average
net assets.............................. 4.82% 4.71% 4.92% 4.71% 2.81%
Ratio of expenses to average net assets*... 0.86% 0.93% 0.91% 0.94% 0.87%
Ratio of net investment income to average
net assets*............................. 4.73% 4.50% 4.68% 4.43% 2.57%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Includes $.000002 short term capital gain.
See notes to financial statements.
29
<PAGE> 32
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES
MONEY MARKET FUND
------------------------
<S> <C> <C>
CLASS B
------------------------
<CAPTION>
YEAR NOVEMBER 21,
ENDED 1996 TO
JUNE 30, JUNE 30,
1998 1997(a)
------ ------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $1.000 $1.000
------ ------
Investment Activities:
Net investment income..................................... 0.041 0.024
------ ------
Less: Distributions:
Net investment income..................................... (0.041) (0.024)(b)
------ ------
NET ASSET VALUE,
END OF PERIOD............................................. $1.000 $1.000
====== ======
Total Return................................................ 4.14% 2.44%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 181 $ 49
Ratio of expenses to average net assets................... 1.52% 1.48%(d)
Ratio of net investment income to average net assets...... 4.06% 3.97%(d)
Ratio of expenses to average net assets*.................. 1.60% 1.59%(d)
Ratio of net investment income to average net assets*..... 3.98% 3.86%(d)
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Includes $.000002 short term capital gain.
(c) Not annualized.
(d) Annualized.
See notes to financial statements.
30
<PAGE> 33
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES
MONEY MARKET FUND
------------------------
<S> <C>
CLASS C
-------
<CAPTION>
FEBRUARY 18,
1998 TO
JUNE 30,
1998(a)
-------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 1.000
-------
Investment Activities:
Net investment income..................................... 0.015
-------
Less: Distributions:
Net investment income..................................... (0.015)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 1.000
=======
Total Return................................................ 1.47%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 1
Ratio of expenses to average net assets................... 1.57%(c)
Ratio of net investment income to average net assets...... 4.01%(c)
</TABLE>
- ------------
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
31
<PAGE> 34
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FIDUCIARY
--------------------------------------------------------------
<CAPTION>
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
Investment Activities:
Net investment income................. 0.053 0.051 0.054 0.052 0.031
---------- ---------- ---------- ---------- ----------
Less: Distributions:
Net investment income................. (0.053) (0.051) (0.054) (0.052) (0.031)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE,
END OF PERIOD......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
Total Return............................ 5.39% 5.20% 5.49% 5.34% 3.19%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $2,616,698 $2,563,768 $2,186,562 $1,965,416 $1,600,876
Ratio of expenses to average net
assets............................. 0.51% 0.48% 0.44% 0.41% 0.40%
Ratio of net investment income to
average net assets................. 5.26% 5.08% 5.34% 5.27% 3.18%
Ratio of expenses to average net
assets*............................ 0.58% 0.56% 0.55% 0.57% 0.59%
Ratio of net investment income to
average net assets*................ 5.19% 5.00% 5.23% 5.12% 2.99%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
32
<PAGE> 35
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
---------------------------------------------------
<CAPTION>
YEAR ENDED JUNE 30,
---------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD........................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------
Investment Activities:
Net investment income......................... 0.050 0.048 0.051 0.050 0.027
-------- -------- -------- -------- -------
Less: Distributions:
Net investment income......................... (0.050) (0.048) (0.051) (0.050) (0.027)
-------- -------- -------- -------- -------
NET ASSET VALUE,
END OF PERIOD................................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== =======
Total Return.................................... 5.13% 4.94% 5.22% 5.08% 2.93%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............. $605,291 $332,646 $315,374 $201,968 $74,759
Ratio of expenses to average net assets....... 0.76% 0.73% 0.69% 0.67% 0.65%
Ratio of net investment income to average net
assets..................................... 5.01% 4.83% 5.09% 5.02% 2.92%
Ratio of expenses to average net assets*...... 0.83% 0.91% 0.90% 0.92% 0.90%
Ratio of net investment income to average net
assets*.................................... 4.94% 4.65% 4.88% 4.77% 2.67%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
33
<PAGE> 36
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
--------------------------
CLASS B
--------------------------
YEAR NOVEMBER 21,
ENDED 1996 TO
JUNE 30, JUNE 30,
1998 1997(a)
-------- ------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $1.000 $1.000
------ ------
Investment Activities:
Net investment income..................................... 0.043 0.026
------ ------
Less: Distributions:
Net investment income..................................... (0.043) (0.026)
------ ------
NET ASSET VALUE,
END OF PERIOD............................................. $1.000 $1.000
====== ======
Total Return................................................ 4.35% 2.63%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $1,912 $ 618
Ratio of expenses to average net assets................... 1.51% 1.51%(c)
Ratio of net investment income to average net assets...... 4.25% 4.16%(c)
Ratio of expenses to average net assets*.................. 1.57% 1.59%(c)
Ratio of net investment income to average net assets*..... 4.19% 4.08%(c)
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
34
<PAGE> 37
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
----------------------------------------------------
FIDUCIARY
----------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Investment Activities:
Net investment income........................ 0.032 0.031 0.033 0.032 0.021
-------- -------- -------- -------- --------
Less: Distributions:
Net investment income........................ (0.032) (0.031) (0.033) (0.032) (0.021)
-------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD................................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Return................................... 3.27% 3.19% 3.34% 3.28% 2.16%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............ $498,127 $467,420 $459,807 $437,743 $352,702
Ratio of expenses to average net assets...... 0.45% 0.43% 0.41% 0.41% 0.40%
Ratio of net investment income to average net
assets.................................... 3.22% 3.16% 3.29% 3.26% 2.13%
Ratio of expenses to average net assets*..... 0.56% 0.55% 0.59% 0.59% 0.60%
Ratio of net investment income to average net
assets*................................... 3.11% 3.04% 3.11% 3.08% 1.93%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
35
<PAGE> 38
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
------------------------------------------------
CLASS A
------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------
1998 1997 1996 1995 1994
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ------- ------- ------- -------
Investment Activities:
Net investment income............................ 0.030 0.029 0.030 0.030 0.021
-------- ------- ------- ------- -------
Less: Distributions:
Net investment income............................ (0.030) (0.029) (0.030) (0.030) (0.021)
-------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.................................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======= ======= ======= =======
Total Return....................................... 3.01% 2.97% 3.08% 3.02% 1.96%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................ $104,809 $48,185 $50,720 $56,518 $41,595
Ratio of expenses to average net assets.......... 0.70% 0.68% 0.66% 0.66% 0.65%
Ratio of net investment income to average net
assets........................................ 2.97% 2.91% 3.04% 3.01% 1.92%
Ratio of expenses to average net assets*......... 0.81% 0.90% 0.94% 0.94% 0.91%
Ratio of net investment income to average net
assets*....................................... 2.86% 2.69% 2.76% 2.73% 1.66%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
36
<PAGE> 39
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
---------------------------------------------------
FIDUCIARY
---------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.................................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Investment Activities:
Net investment income................................ 0.033 0.032 0.033 0.032 0.022
------- ------- ------- ------- -------
Less: Distributions:
Net investment income................................ (0.033) (0.032) (0.032) (0.032) (0.022)
In excess of net investment.......................... -- -- (0.001) -- --
------- ------- ------- ------- -------
Total Distributions............................... (0.033) (0.032) (0.033) (0.032) (0.022)
------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD........................................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Return........................................... 3.31% 3.22% 3.34% 3.20% 2.25%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................... $77,224 $56,442 $55,915 $51,806 $55,375
Ratio of expenses to average net assets.............. 0.40% 0.40% 0.41% 0.41% 0.34%
Ratio of net investment income to average net
assets............................................ 3.27% 3.17% 3.19% 3.13% 2.29%
Ratio of expenses to average net assets*............. 0.53% 0.53% 0.71% 0.60% 0.57%
Ratio of net investment income to average net
assets*........................................... 3.14% 3.04% 2.89% 2.94% 2.06%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
37
<PAGE> 40
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
-----------------------------------------------
CLASS A
-----------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Investment Activities:
Net investment income............................. 0.030 0.029 0.030 0.029 0.021
------- ------- ------- ------- -------
Less: Distributions:
Net investment income............................. (0.030) (0.029) (0.029) (0.029) (0.021)
In excess of net investment....................... -- -- (0.001) -- --
------- ------- ------- ------- -------
Total Distributions............................ (0.030) (0.029) (0.030) (0.029) (0.021)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Return........................................ 3.06% 2.96% 3.08% 2.98% 2.09%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................. $39,100 $30,479 $41,132 $35,790 $37,356
Ratio of expenses to average net assets........... 0.65% 0.65% 0.66% 0.63% 0.44%
Ratio of net investment income to average net
assets......................................... 2.98% 2.90% 2.94% 2.91% 2.05%
Ratio of expenses to average net assets*.......... 0.78% 0.88% 1.06% 0.95% 0.94%
Ratio of net investment income to average net
assets*........................................ 2.85% 2.67% 2.54% 2.59% 1.55%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
38
<PAGE> 41
- --------------------------------------------------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS JUNE 30, 1997
To the Shareholders and Board of Trustees of
The One Group Family of Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the U.S. Treasury Securities Money
Market Fund, the Prime Money Market Fund, the Municipal Money Market Fund and
the Ohio Municipal Money Market Fund (four series of The One Group Family of
Mutual Funds), at June 30, 1998, the results of each of their operations for the
period then ended, the changes in each of their net assets for the periods
presented and the financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of The One Group Family of Mutual Funds'
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 1998 by correspondence with the custodian
and brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
August 18, 1998
See notes to financial statements.
39
<PAGE> 42
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, includ-
ing management fees and expenses,
you may obtain a prospectus from
The One Group Services Company.
Read the prospectus carefully
before investing.
BANC ONE
INVESTMENT
ADVISORS
CORPORATION
[BANC ONE LOGO]
