<PAGE> 1
MONEY
MARKET FUNDS
ANNUAL REPORT
For the year ended June 30, 1999
PRIME MONEY MARKET FUND
U.S. TREASURY SECURITIES
MONEY MARKET FUND
MUNICIPAL MONEY MARKET FUND
MICHIGAN MUNICIPAL MONEY MARKET FUND
OHIO MUNICIPAL MONEY MARKET FUND
[ONE GROUP LOGO]
<PAGE> 2
IMPORTANT CUSTOMER INFORMATION. INVESTMENT PRODUCTS:
- are not deposits or obligations of, or guaranteed by,
BANK ONE CORPORATION or any of its affiliates,
- are not insured by the FDIC, and [CANCELLED FDIC LOGO]
- are subject to investment risks, including possible
loss of the principal amount invested.
<PAGE> 3
- --------------------------------------------------------------------------------
Table of Contents
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
Portfolio Performance Review.................................................. 2
Schedules of Portfolio Investments............................................ 7
Statements of Assets and Liabilities..........................................23
Statements of Operations......................................................24
Statements of Changes in Net Assets...........................................25
Notes to Financial Statements.................................................27
Financial Highlights..........................................................37
Report of Independent Accountants.............................................53
1
<PAGE> 4
One Group Prime Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
HOW DID THE FUND PERFORM?
The seven-day yield on One Group Prime Money Market Fund I share class was 4.60%
on June 30, 1999, down slightly from 5.22% on June 30, 1998.
WHY DID THE YIELD DECLINE?
The decline in the Fund's yield primarily was due to the Federal Reserve's
activity in the second half of 1998. Responding to turmoil overseas and domestic
financial market distress, the Fed cut short-term interest rates three times
last year, for a total 0.75 percentage point decline.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
While the Fund's weighted average maturity did not change significantly from
June 30, 1998 -- 69 days on June 30, 1999, compared to 71 days on June 30,
1998 -- we did maintain a longer weighted average maturity than many of the
Fund's peers. With inflation low, the "real" interest rates on longer-dated
paper were particularly attractive. In addition, when the Fed eased in late
1998, the Fund was well positioned to maintain a competitive yield for a longer
period of time.
We also restructured the Fund's holdings of variable-rate securities in order to
increase current yield and make the Fund more responsive should the Fed continue
to "take back" its late-1998 rate cuts. These moves also had a minor impact on
the changes in the Fund's weighted average maturity.
In the second half of 1998, market and economic turmoil abroad was a factor in
setting limitations on various issuers on our approved list -- those deemed to
be at risk from the events overseas. However, strict attention to our "due
diligence" process helped us avoid situations that could have adversely affected
the Fund's performance.
WHAT IS YOUR OUTLOOK FOR THE FUND?
The Federal Reserve has expressed concern regarding the pace at which the U.S.
economy continues to grow. Of course, the extent to which the Fed responds will
significantly affect the Fund's yield.
The market anticipates modest tightening, which began with a quarter-point rate
hike at the end of June. We intend to manage the Fund's weighted average
maturity to capitalize on the volatility, which likely will ensue. If rates
overshoot what we believe to be justified, we will extend the weighted average
maturity to take advantage of that situation.
/s/ Sherman Smith
Sherman Smith
Team Leader
Money Market Team
/s/ Gary I. Madich
Gary J. Madich, CFA
Chief Investment Officer 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>
Class I 4.60% 4.98% 5.28% 5.27% 5.69%
Class A 4.35% 4.72% 5.02% NA 4.35%
Class B 3.60% 3.94% NA NA 4.20%
Service Class 4.05% NA NA NA 0.84%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
2
<PAGE> 5
One Group U.S. Treasury Securities Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
HOW DID THE FUND PERFORM?
The seven-day yield on One Group U.S. Treasury Securities Money Market Fund I
share class was 4.31% on June 30, 1999, down from 5.12% on June 30, 1998. The
decline primarily was due to the three rate cuts the Federal Reserve implemented
in the second half of 1998.
HOW WOULD YOU CHARACTERIZE THE SHORT-TERM INTEREST RATE CLIMATE DURING THE YEAR?
Over the past 12 months, we have witnessed a complete market interest rate
cycle. In the summer of 1998, strong consumer demand and increased inflation
risk led to an expected interest rate tightening from the Federal Reserve. Then,
in the fall of 1998, weakening conditions in Asia, Brazil and Russia were the
catalyst for a series of three Fed easing moves, which cut rates by 0.75
percentage point. The yield on the one-year Treasury bill dropped from a high of
5.36% to a low of 3.84%.
The Fed's easing of rates spurred further increases in consumer demand. This,
combined with a stabilization of the international economies, pushed interest
rates higher during the first half of 1999, and the one-year Treasury bill yield
moved back up to 5.20%.
There were other factors that contributed to the market volatility. For example,
budget surpluses allowed the U.S. Treasury to significantly reduce the issuance
of Treasury securities. At the same time, agency supply increased significantly,
due in large part to low mortgage rates and the overwhelming demand for home
loans.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
We continued to implement a barbell maturity structure, a common strategy that
involves investing in securities at the long and short ends of a particular
maturity range instead of those with intermediate maturities. At the "long" end,
we purchased securities with maturities of six months to one year, and at the
"short" end, we held overnight repurchase agreements. This strategy helped the
fund maintain a high level of liquidity while benefiting from higher yields. The
"long" securities offered the yield advantages, while the "short" securities
provided the liquidity to meet shareholder redemptions.
At year end, the Fund's average maturity was 41 days, compared to 37 days on
June 30, 1998. The Fund maintained its "AAA" quality rating -- the highest
available -- from Standard & Poor's and Moody's Investors Service. To earn this
rating, a fund's average maturity may not exceed 60 days.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We expect to continue employing the barbell maturity structure. This strategy
works well with our goals of maintaining a stable net asset value, providing
liquidity and offering a competitive rate of return.
Of course, economic activity will have an effect on the Fund, so we will
continue to monitor several factors that may influence our strategy and the
Fund's performance. These include consumer demand, inflation expectations,
monetary policy, fiscal policy and international economic and market conditions.
/s/ Sherman Smith
Sherman Smith
Team Leader
Money Market Team
/s/ Gary J. Madich
Gary J. Madich, CFA
Chief Investment Officer 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>
Class I 4.31% 4.63% 5.06% 5.02% 5.42%
Class A 4.06% 4.37% 4.80% NA 4.14%
Class B 3.31% 3.60% NA NA 3.91%
Class C 3.31% 3.59% NA NA 3.73%
Service Class 3.75% NA NA NA 0.77%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
3
<PAGE> 6
One Group Municipal Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
HOW DID THE FUND PERFORM?
The seven-day yield on One Group Municipal Money Market Fund I share class was
3.27% on June 30, 1999, compared to 3.15% on June 30, 1998. (For investors in
the 39.6% federal income tax bracket, the 3.27% yield translates to a
tax-equivalent yield of 5.41%.)
WHAT CONTRIBUTED TO THE INCREASE IN YIELD?
Rates fell from July to October, as the Federal Reserve shifted to a more
accommodative monetary policy with three successive rate cuts. Yields on
one-year tax-exempt notes declined to 2.90% from 3.60%, while variable-rate
issues moved within a range of 2.80% to 3.75% in an irregular fashion.
From October through February, rates held relatively stable. Then, beginning in
early spring and through the end of the fiscal year, rates began to increase due
to concerns that the Federal Reserve may have eased unnecessarily and that
inflation may be looming in the wake of continued economic growth. Rates on
one-year notes increased to 3.40%, and variable-rate issues traded within a
range of 2.25% to 4.00%.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategy involved balancing the Fund's security mix between
variable- and fixed-rate issues in an effort to anticipate and react to changing
market conditions. We also relied upon our quality-oriented selection process to
uncover issues that we believe represent minimal credit risk.
In the first half of the fiscal year, our strategy was to extend the Fund's
average maturity to lock in yields during a falling rate environment. As the
rate declines subsided in early spring, our strategy subsequently shifted to
shorter maturities and emphasized variable-rate issues to benefit from the trend
toward rising interest rates. The Fund's average maturity ranged from 17 days to
53 days and ended the fiscal year at 22 days, compared to 46 days on June 30,
1998.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Economic pressures and concerns about inflation should continue to favor an
upward rate bias over the near term. The short-term municipal market also will
have to contend with an unfavorable technical environment -- whereby demand
exceeds supply -- as many issuers either shift their debt beyond the money
market range or reduce their outstanding short-term debt with favorable
surpluses. Generally, an extended rising rate trend also may bring about the
possibility of deteriorating credit and widening yield spreads. With that in
mind, our investment strategy will continue to selectively favor quality-rated
issues and use shorter average maturities to generate consistent, attractive
returns.
/s/ Sherman Smith
Sherman Smith
Team Leader
Money Market Team
/s/ Gary J. Madich
Gary J. Madich, CFA
Chief Investment Officer 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>
Class I 3.27% 2.88% 3.19% 3.47% 3.76%
Class A 2.84% 2.63% 2.94% NA 2.63%
Service Class 2.72% NA NA NA 0.50%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
4
<PAGE> 7
One Group Michigan Municipal Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
HOW DID THE FUND PERFORM?
The seven-day yield on One Group Michigan Municipal Money Market Fund I share
class was 3.09% on June 30, 1999, compared to 3.19% on December 31, 1998, and
3.03% on June 30, 1998.(1) (For investors in the 39.6% federal income tax
bracket and the 4.4% Michigan state income tax bracket, the 3.09% yield
translates to a tax-equivalent yield of 5.52%.)
WHAT CONTRIBUTED TO THE CHANGE IN YIELD?
Although the market patterns were quite dynamic during the year, a modest rate
increase was evident at fiscal year-end. Rates fell from July 1998 to October
1998, as the Federal Reserve shifted to a more accommodative monetary policy
with three successive rate cuts. Yields on one-year tax-exempt notes declined to
2.90% from 3.60%, while variable-rate issues moved within a range of 2.80% to
3.75% in an irregular fashion.
From October through February, rates held relatively stable. Then, beginning in
early spring and through the end of the fiscal year, rates began to increase due
to concerns that the Federal Reserve may have eased unnecessarily and that
inflation may be looming in the wake of continued economic growth. Rates on
one-year notes increased to 3.40%, and variable-rate issues traded within a
range of 2.25% to 4.00%.
HOW DID EVENTS IN MICHIGAN INFLUENCE THE FUND'S PERFORMANCE OR YOUR STRATEGY?
The Michigan economy remained relatively stable during the period. Moderate debt
levels, strong cash balances and sound financial management helped many
municipal issues take advantage of favorable market conditions. As a result,
short-term financing remained quite low in favor of long-term bond issuance.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategy involved balancing the Fund's security mix between
variable- and fixed-rate issues in an effort to anticipate and react to changing
market conditions. We also relied upon our quality-oriented selection process to
uncover issues that we believe represent minimal credit risk.
Initially, our strategy was to extend the Fund's average maturity to lock in
yields during a falling rate environment. As the rate declines subsided in early
spring, we emphasized shorter maturities and variable-rate issues to benefit
from the trend toward rising interest rates. The Fund's average maturity was 31
days on June 30, 1999, compared to 51 days on December 31, 1998.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Economic pressures and concerns about inflation should continue to favor an
upward rate bias over the near term. The short-term municipal market also will
have to contend with an unfavorable technical environment -- whereby demand
exceeds supply -- as many issuers either shift their debt beyond the money
market range or reduce their outstanding short-term debt with favorable
surpluses. Generally, an extended rising rate trend also may bring about the
possibility of deteriorating credit and widening yield spreads. With that in
mind, our investment strategy will continue to selectively favor quality-rated
issues and use shorter average maturities to generate consistent, attractive
returns.
/s/ Sherman Smith
Sherman Smith
Team Leader
Money Market Team
/s/ Gary J. Madich
Gary J. Madich, CFA
Chief Investment Officer 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>
Class I 3.09% 2.83% 3.06% NA 2.85%
Class A 2.84% 2.57% 2.91% NA 2.77%
</TABLE>
(1) The Fund previously was a member of the Pegasus Funds, which had a fiscal
year-end of December 31, 1998 -- the date of the last Pegasus Funds annual
report. The Pegasus Funds merged with the One Group in March 1999, and the
Fund's fiscal year-end is now June 30.
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
5
<PAGE> 8
One Group Ohio Municipal Money Market Fund
Portfolio Performance Review
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
HOW DID THE FUND PERFORM?
The seven-day yield on One Group Ohio Municipal Money Market Fund I share class
was 3.20% on June 30, 1999, compared to 3.21% on June 30, 1998. (For investors
in the 39.6% federal income tax bracket and the 7.0% Ohio state income tax
bracket, the 3.20% yield translates to a tax-equivalent yield of 5.99%.)
WHAT CONTRIBUTED TO THE SLIGHT CHANGE IN YIELD?
Rates fell from July to October, as the Federal Reserve shifted to a more
accommodative monetary policy with three successive rate cuts. Yields on
one-year tax-exempt notes declined to 2.90% from 3.60%, while variable-rate
issues moved within a range of 2.80% to 3.75% in an irregular fashion.
From October through February, rates held relatively stable. Then, beginning in
early spring and through the end of the fiscal year, rates began to increase due
to concerns that the Federal Reserve may have eased unnecessarily and that
inflation may be looming in the wake of continued economic growth. Rates on
one-year notes increased to 3.40%, and variable-rate issues traded within a
range of 2.25% to 4.00%.
HOW DID EVENTS IN OHIO INFLUENCE THE FUND'S PERFORMANCE OR YOUR STRATEGY?
The credit status for many Ohio issuers remained strong during the fiscal year.
Employment trends and a relatively diverse economy helped support a favorable
growth climate. Ohio school districts continued to focus on re-allocation of
funding requirements. This considerable challenge ultimately resulted in a
decline in total short-term debt issuance in the school district sector.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS?
Our primary strategy involved balancing the Fund's security mix between
variable- and fixed-rate issues in an effort to anticipate and react to changing
market conditions. We also relied upon our quality-oriented selection process to
uncover issues that we believe represent minimal credit risk.
In the first half of the fiscal year, our strategy was to extend the Fund's
average maturity to lock in yields during a falling rate environment. As the
rate declines subsided in early spring, our strategy subsequently shifted to
shorter maturities and emphasized variable-rate issues to benefit from the trend
toward rising interest rates. The Fund's average maturity ranged from 25 days to
50 days and ended the fiscal year at 35 days, compared to 36 days on June 30,
1998.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Economic pressures and concerns about inflation should continue to favor an
upward rate bias over the near term. The short-term municipal market also will
have to contend with an unfavorable technical environment -- whereby demand
exceeds supply -- as many issuers either shift their debt beyond the money
market range or reduce their outstanding short-term debt with favorable
surpluses. Generally, an extended rising rate trend also may bring about the
possibility of deteriorating credit and widening yield spreads. With that in
mind, our investment strategy will continue to selectively favor quality-rated
issues and use shorter average maturities to generate consistent, attractive
returns.
/s/ Sherman Smith
Sherman Smith
Team Leader
Money Market Team
/s/ Gary J. Madich
Gary J. Madich, CFA
Chief Investment Officer 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>
Class I 3.20% 2.88% 3.19% N/A 3.02%
Class A 2.95% 2.62% 2.94% N/A 2.75%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
6
<PAGE> 9
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One Group Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER (58.2%):
Asset Backed (25.6%):
$ 40,000 Ace Overseas Corp., 5.12%,
7/20/99.......................... $ 39,892
80,000 Ace Overseas Corp., 4.98%,
9/7/99........................... 79,247
84,000 Ace Overseas Corp., 5.00%,
9/10/99.......................... 83,172
53,391 Atlantis One Funding Corp., 4.86%,
8/20/99.......................... 53,031
41,764 Atlantis One Funding Corp., 4.91%,
9/20/99.......................... 41,303
55,797 Atlantis One Funding Corp., 5.00%,
10/1/99.......................... 55,084
75,000 Atlantis One Funding Corp., 4.90%,
10/13/99......................... 73,938
45,000 Bavaria T.R.R. Corp., 5.00%,
7/8/99........................... 44,956
50,000 Bavaria T.R.R. Corp., 5.00%,
7/9/99........................... 49,944
50,000 Citibank Credit Card Master Trust,
4.92%, 7/2/99.................... 49,993
71,962 Concord Minutemen Capital Co.,
L.L.C., 4.95%, 10/19/99.......... 70,874
16,425 Concord Minutemen Capital Co.,
L.L.C., 5.07%, 1/10/00........... 15,979
30,298 Greenwich Funding Corp., 5.02%,
8/20/99.......................... 30,087
50,000 Lexington Parker Capital Co.,
L.L.C., 4.78%, 7/14/99........... 49,914
50,000 Lexington Parker Capital Co.,
L.L.C., 4.86%, 8/18/99........... 49,676
50,000 Lexington Parker Capital Co.,
L.L.C., 4.87%, 8/20/99........... 49,662
150,000 Lexington Parker Capital Co.,
L.L.C., 4.88%, 9/3/99............ 148,700
50,000 Moat Funding, L.L.C., 4.96%,
7/1/99........................... 50,000
56,264 Moat Funding, L.L.C., 5.02%,
7/16/99.......................... 56,146
70,000 Moat Funding, L.L.C., 4.90%,
8/24/99.......................... 69,485
50,000 Moat Funding, L.L.C., 5.00%,
8/25/99.......................... 49,618
101,193 Moat Funding, L.L.C., 5.01%,
8/27/99.......................... 100,390
50,105 Moat Funding, L.L.C., 5.02%,
9/1/99........................... 49,672
32,635 Moat Funding, L.L.C., 4.90%,
10/26/99......................... 32,116
25,514 Moat Funding, L.L.C., 5.20%,
11/3/99.......................... 25,053
77,490 Repeat Offering Securities Entity,
Inc., 4.85%, 7/12/99............. 77,375
11,107 Repeat Offering Securities Entity,
Inc., 4.83%, 7/13/99............. 11,089
13,834 Repeat Offering Securities Entity,
Inc., 4.83%, 7/14/99............. 13,810
82,000 Repeat Offering Securities Entity,
Inc., 4.78%, 7/19/99............. 81,804
19,200 Sceptre International, Inc., 4.95%,
7/12/99.......................... 19,171
100,000 Sigma Finance, Inc., 5.00%,
9/8/99........................... 99,042
100,000 Sigma Finance, Inc., 4.94%,
9/10/99.......................... 99,026
71,000 Sigma Finance, Inc., 5.00%,
11/19/99......................... 69,610
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Asset Backed, continued:
$ 45,100 Special Purpose Accounts Receivable
Cooperative Corp., 5.50%,
7/1/99........................... $ 45,100
40,425 Special Purpose Accounts Receivable
Cooperative Corp., 4.97%,
7/20/99.......................... 40,319
75,000 Special Purpose Accounts Receivable
Cooperative Corp., 4.96%,
7/28/99.......................... 74,721
45,000 Special Purpose Accounts Receivable
Cooperative Corp., 4.96%,
7/29/99.......................... 44,826
34,290 Special Purpose Accounts Receivable
Cooperative Corp., 4.97%,
8/3/99........................... 34,134
58,339 Special Purpose Accounts Receivable
Cooperative Corp., 4.97%,
8/4/99........................... 58,065
20,000 Special Purpose Accounts Receivable
Cooperative Corp., 4.88%,
9/23/99.......................... 19,772
----------
2,205,796
----------
Automotive (1.2%):
30,000 American Honda Finance Corp.,
4.86%, 7/27/99................... 29,895
30,000 American Honda Finance Corp.,
4.86%, 7/29/99................... 29,887
41,700 American Honda Finance Corp.,
4.81%, 7/30/99................... 41,538
----------
101,320
----------
Banking (15.7%):
50,000 AB Spintab, 4.83%, 7/8/99.......... 49,953
125,000 AB Spintab, 4.87%, 9/8/99.......... 123,834
100,000 AB Spintab, 4.83%, 10/7/99......... 98,685
75,000 AB Spintab, 4.83%, 10/8/99......... 74,004
50,000 Abbey National North America Corp.,
4.97%, 1/5/00.................... 48,702
50,000 Abbey National North America Corp.,
5.00%, 1/7/00.................... 48,681
40,000 Banco de Galicia, 4.87%, 8/19/99... 39,735
75,000 Banco Rio de la Plata S.A., 4.93%,
12/2/99.......................... 73,418
50,000 BankAmerica Corp., 4.75%,
7/23/99.......................... 49,855
50,000 BankAmerica Corp., 4.75%,
7/26/99.......................... 49,835
50,000 BankAmerica Corp., 4.80%,
8/26/99.......................... 49,627
50,000 BankAmerica Corp., 4.80%,
10/20/99......................... 49,260
47,000 Den Danske Corp., 4.81%,
10/22/99,........................ 46,290
87,500 Galicia Buenos Aires Funding Corp.,
5.40%, 3/28/00................... 83,956
50,000 Hong Kong Bank Of Canada, 4.90%,
7/6/99........................... 49,966
50,000 Hong Kong Bank Of Canada, 4.83%,
8/6/99........................... 49,759
75,000 Hong Kong Bank Of Canada, 4.90%,
8/17/99.......................... 74,520
15,000 Hong Kong Bank Of Canada, 4.90%,
8/18/99.......................... 14,902
</TABLE>
7
Continued
<PAGE> 10
- --------------------------------------------------------------------------------
One Group Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Banking, continued:
$ 50,000 Swedbank, 4.83%, 7/6/99............ $ 49,966
40,000 Swedbank, 4.80%, 7/22/99........... 39,888
40,000 Swedbank, 4.87%, 8/9/99............ 39,789
50,000 Swedbank, 4.82%, 8/11/99........... 49,726
50,000 Toronto Dominion Holdings, 4.80%,
10/27/99......................... 49,213
25,000 Unifunding, Inc., 4.75%, 7/15/99... 24,954
25,000 Unifunding, Inc., 4.74%, 7/21/99... 24,934
----------
1,353,452
----------
Beverages (3.5%):
25,000 Coca Cola Enterprises, 4.81%,
7/20/99.......................... 24,937
20,000 Coca Cola Enterprises, 4.84%,
8/4/99........................... 19,909
50,000 Coca Cola Enterprises, 4.84%,
8/10/99.......................... 49,730
35,000 Coca Cola Enterprises, 4.84%,
8/12/99.......................... 34,802
50,000 Coca Cola Enterprises, 4.84%,
8/16/99.......................... 49,691
30,000 Coca Cola Enterprises, 4.89%,
8/25/99.......................... 29,776
50,000 Coca Cola Enterprises, 4.98%,
9/13/99.......................... 49,488
50,000 Coca Cola Enterprises, 5.04%,
8/30/99.......................... 49,580
----------
307,913
----------
Brokerage Services (0.5%):
40,000 Credit Suisse First Boston
Guernsey, 4.84%, 7/13/99......... 39,935
----------
Electric Utility (1.9%):
25,000 AES Shady Point, 4.77%, 7/21/99.... 24,934
20,000 National Rural Utilities
Cooperative Finance Corp., 4.80%,
8/9/99........................... 19,896
40,000 National Rural Utilities
Cooperative Finance Corp., 4.80%,
8/13/99.......................... 39,771
101,500 National Rural Utilities
Cooperative Finance Corp., 4.88%,
9/15/99.......................... 100,454
----------
160,121
----------
Information Systems (0.6%):
25,000 CSC Enterprises, 4.86%, 7/8/99..... 24,976
30,000 CSC Enterprises, 4.81%, 7/9/99..... 29,968
----------
54,944
----------
Mortgage Bankers & Correspondents (3.0%):
45,000 Countrywide Home Loans, 5.05%,
8/5/99........................... 44,779
50,000 Countrywide Home Loans, 4.95%,
8/11/99.......................... 49,718
46,850 Countrywide Home Loans, 4.96%,
8/12/99.......................... 46,579
25,000 Countrywide Home Loans, 4.96%,
8/16/99.......................... 24,842
65,700 Countrywide Home Loans, 5.07%,
8/19/99.......................... 65,246
22,700 Homeside Lending, Inc., 4.82%,
7/7/99........................... 22,682
----------
253,846
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Motorcycles (1.6%):
$ 42,450 Harley-Davidson Funding, 4.93%,
7/9/99........................... $ 42,403
40,000 Harley-Davidson Funding, 4.93%,
7/21/99.......................... 39,890
35,594 Harley-Davidson Funding, 4.93%,
7/22/99.......................... 35,492
16,500 Harley-Davidson Funding, 4.89%,
7/27/99.......................... 16,442
----------
134,227
----------
Office Equipment & Services (1.3%):
38,500 Xerox Capital de Mexico S.A. de CV,
4.83%, 7/6/99.................... 38,474
69,000 Xerox Capital de Mexico S.A. de CV,
4.83%, 7/7/99.................... 68,945
----------
107,419
----------
Oil & Gas Exploration (1.2%):
50,000 Pemex Capital, Inc., 4.81%,
7/26/99.......................... 49,833
50,000 Pemex Capital, Inc., 4.81%,
8/29/99.......................... 49,786
----------
99,619
----------
Pharmaceuticals (1.3%):
12,000 Akzo Nobel, Inc., 4.83%, 7/02/99... 11,998
25,000 Akzo Nobel, Inc., 4.80%, 7/22/99... 24,930
32,197 Akzo Nobel, Inc., 4.80%, 7/26/99... 32,090
40,000 Akzo Nobel, Inc., 4.82%, 8/12/99... 39,775
----------
108,793
----------
Transportation & Shipping (0.5%):
45,000 Dixie Overseas Limited, 5.10%,
7/21/99.......................... 44,873
----------
Total Commercial Paper 4,997,192
----------
DEMAND NOTES (0.8%):
70,000 Paccar Leasing, 5.22%, 1/9/00*..... 70,000
----------
Total Demand Notes 70,000
----------
BANK NOTES (1.2%):
Banking (1.2%):
15,000 Comerica Bank, 6.65%, 6/1/00....... 15,130
45,000 Morgan Guaranty Trust, 5.09%,
9/27/99*......................... 44,996
40,000 PNC Bank, 4.95%, 10/12/99.......... 40,000
----------
Total Bank Notes 100,126
----------
CORPORATE NOTES (9.9%):
Asset Backed (9.5%):
58,000 Racers Series 1998-MM-7-1, 5.53%,
8/13/99*......................... 58,000
27,000 Racers Series 1999-16-MM, 4.97%,
6/2/00*.......................... 27,000
100,000 Structured Products Asset Return
Series 1999-10, 5.37%,
7/29/99*......................... 100,000
</TABLE>
8
Continued
<PAGE> 11
- --------------------------------------------------------------------------------
One Group Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
CORPORATE NOTES, CONTINUED:
Asset Backed, continued:
$ 319,000 Structured Products Asset Return
Series 1999-4, 5.14%, 1/24/00*... $ 319,000
125,000 Syndicated Loan Funding Trust --
Series 1993-3, 5.13%, 6/15/00*... 125,000
100,000 Syndicated Loan Funding Trust --
Series 1999-1, 5.24%, 2/15/00*... 100,000
90,000 Syndicated Loan Funding Trust --
Series 1999-2, 5.14%, 3/15/00*... 90,000
----------
819,000
----------
Automotive (0.4%):
31,136 Ford Motor Credit Co., 8.38%,
1/15/00.......................... 31,601
----------
Total Corporate Notes 850,601
----------
MASTER NOTES (0.9%):
Automotive (0.9%):
75,000 Wheels, Inc., 5.26%, 1/18/00*...... 75,000
----------
Total Master Notes 75,000
----------
MEDIUM TERM/SENIOR NOTES (8.3%):
Asset Backed (4.5%):
182,500 Liberty Lighthouse U.S. Capital
Co., L.L.C., 4.98%, 11/15/99*.... 182,457
120,000 Liberty Lighthouse U.S. Capital
Co., L.L.C., 5.18%, 6/19/00*..... 120,000
40,000 Sigma Finance, Inc., 4.96%,
10/4/99*......................... 40,000
47,500 Sigma Finance, Inc., 5.41%,
3/13/00.......................... 47,500
----------
389,957
----------
Brokerage Services (3.8%):
53,000 Bear Stearn Co., Inc., Series B,
5.32%, 5/19/00................... 53,000
46,685 Lehman Brothers Holdings, Inc.,
Series E, 5.27%, 1/18/00*........ 46,647
15,000 Lehman Brothers Holdings, Inc.,
Series E, 5.24%, 1/24/00*........ 14,975
35,485 Lehman Brothers Holdings, Inc.,
Series E, 8.88%, 2/15/00......... 36,156
40,000 Lehman Brothers Holdings, Inc.,
Series E, 5.27%, 3/6/00*......... 39,938
10,000 Lehman Brothers Holdings, Inc.,
Series E, 8.36%, 3/8/00.......... 10,175
58,490 Lehman Brothers Holdings, Inc.,
Series E, 6.15%, 3/15/00......... 58,689
37,500 Lehman Brothers Holdings, Inc.,
Series E, 6.05%, 4/28/00......... 37,632
25,000 Lehman Brothers Holdings, Inc.,
Series E, 8.15%, 5/15/00......... 25,529
----------
322,741
----------
Total Medium Term/Senior Notes 712,698
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
FUNDING AGREEMENTS (12.4%):
Insurance (12.4%):
$ 50,000 Allstate Life Insurance Co., 5.02%,
2/1/99*.......................... $ 50,000
100,000 First Allamerica Financial Life
Insurance Co., 5.26%,............ 100,000
160,000 General American Life Insurance
Co., 5.12%, 11/19/99*............ 160,000
88,000 General American Life Insurance
Co., 5.12%, 1/19/00*............. 88,000
100,000 General American Life Insurance
Co., 5.12%, 1/19/00*............. 100,000
265,000 Peoples Benefit Life Insurance Co.,
5.17%, 6/2/00*................... 265,000
125,000 Security Benefit Life Insurance
Co., 5.20%, 5/15/00*............. 125,000
50,000 Sunamerica Life Insurance, 5.05%,
7/30/99*......................... 50,000
25,000 Sunamerica Life Insurance, 4.98%,
7/30/99*......................... 25,000
50,000 Transamerica Life Insurance &
Annuity Co., 5.07%, 12/9/02*..... 50,000
25,000 Travelers Insurance Co., 5.04%,
11/6/99*......................... 25,000
25,000 Western and Southern Life Insurance
Co., 4.93%, 1/29/03*............. 25,000
----------
Total Funding Agreements 1,063,000
----------
CERTIFICATES OF DEPOSIT (0.6%):
Banking (0.6%):
15,000 Michigan National Bank, 5.13%,
5/3/00........................... 14,995
38,000 Nationsbank, N.A., 4.87%,
10/6/99.......................... 37,986
----------
Total Certificates of Deposit 52,981
----------
YANKEE & EURODOLLAR (8.1%):
Banking (8.1%):
100,000 Abbey National Treasury Services,
5.13%, 5/4/00.................... 99,947
25,000 Bank Of Nova Scotia, 5.16%,
2/28/00.......................... 24,995
25,000 Bayerische Hypo-Und Vereinsbank AG,
5.02%, 2/7/00.................... 24,994
50,000 Bayerische Hypo-Und Vereinsbank AG,
5.11%, 4/10/00................... 49,981
50,000 Bayerische Hypo-Und Vereinsbank AG,
5.10%, 4/12/00................... 49,977
50,000 Bayerische Hypo-Und Vereinsbank AG,
5.36%, 5/24/00................... 49,974
54,000 Bayerische Landesbank GZ, 5.11%,
3/21/00.......................... 53,979
18,000 Den Danske Bank, 5.04%, 2/9/00..... 17,998
50,000 Deutsche Bank AG, 5.06%, 4/17/00... 49,977
40,000 Deutsche Bank AG, 5.19%, 5/8/00.... 39,984
25,000 Royal Bank Of Canada, 5.21%,
2/28/00.......................... 24,994
20,000 Societe Generale, 5.69%, 7/16/99... 20,006
</TABLE>
9
Continued
<PAGE> 12
- --------------------------------------------------------------------------------
One Group Mutual Funds
Prime Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
YANKEE & EURODOLLAR, CONTINUED:
Banking, continued:
$ 25,000 Svenska Handelsbanken, 5.23%,
3/1/00........................... $ 24,997
91,000 Swedbank, 5.67%, 7/12/99........... 91,015
75,000 Toronto Dominion Bank, 5.02%,
11/22/99......................... 75,000
----------
Total Yankee & Eurodollar 697,818
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
TIME DEPOSITS (0.6%):
Banking (0.6%):
$ 49,158 State Street Bank and Trust, 5.63%,
7/1/99........................... $ 49,158
----------
Total Time Deposits 49,158
----------
Total (Amortized Cost $8,668,574)(a) $8,668,574
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $8,579,161.
(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, 1999.
See notes to financial statements.
10
<PAGE> 13
- --------------------------------------------------------------------------------
One Group Mutual Funds
U.S. Treasury Securities Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS (17.3%):
U.S. Treasury Bills (1.9%):
$ 25,000 7/22/99............................ $ 24,940
59,000 7/29/99............................ 58,815
25,000 9/16/99............................ 24,759
35,000 12/30/99........................... 34,120
----------
142,634
----------
U.S. Treasury Notes (15.4%):
40,000 5.88%, 8/31/99..................... 40,076
40,000 5.75%, 9/30/99..................... 40,107
85,285 6.38%, 1/15/00..................... 85,986
75,000 5.38%, 1/31/00..................... 75,256
185,000 5.88%, 2/15/00..................... 186,219
190,000 7.13%, 2/29/00..................... 192,810
200,000 5.50%, 2/29/00..................... 200,814
50,000 6.88%, 3/31/00..................... 50,738
50,000 6.75%, 4/30/00..................... 50,751
50,000 5.63%, 4/30/00..................... 50,304
111,100 6.38%, 5/15/00..................... 112,329
50,000 6.25%, 5/31/00..................... 50,526
50,000 5.50%, 5/31/00..................... 50,203
----------
1,186,119
----------
Total U.S. Treasury Obligations 1,328,753
----------
REPURCHASE AGREEMENTS (81.9%):
350,000 Barclays De Zoette Wedd, 4.85%,
7/1/99, (Collateralized by
$343,150 various U.S. Treasury
Securities, 3.63% -- 7.88%,
11/15/99 -- 4/15/28, market value
$357,001)........................ 350,000
200,000 Deutsche Morgan Grenfell, 4.90%,
7/1/99, (Collateralized by
$183,208 various U.S. Treasury
Securities, 5.50% -- 11.88%,
1/31/00 -- 2/15/08, market value
$204,000)........................ 200,000
351,000 Donaldson, Lufkin & Jenrette,
4.80%, 7/1/99, (Collateralized by
$327,928 various U.S. Treasury
Securities, 0.00% -- 13.88%,
7/8/99 -- 2/15/27, market value
$358,021)........................ 351,000
350,000 Goldman Sachs, 4.90%, 7/1/99,
(Collateralized by $342,483
various U.S. Treasury Securities,
5.50% -- 10.00%,
3/31/03 -- 5/15/10, market value
$357,000)........................ 350,000
30,000 Goldman Sachs, 1.50%, 7/1/99,
(Collateralized by $29,355
various U.S. Treasury Securities,
5.50% -- 10.00%,
3/31/03 -- 5/15/10, market value
$30,600)......................... 30,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
REPURCHASE AGREEMENTS, CONTINUED:
$ 350,000 J. P. Morgan Securities, 4.80%,
7/1/99, (Collateralized by
$338,567 various U.S. Treasury
Securities, 0.00% -- 13.88%,
9/30/99 -- 8/15/28, market value
$357,001)........................ $ 350,000
345,000 Lehman Brothers, 4.65%, 7/1/99,
(Collateralized by $323,525
various U.S. Treasury Securities,
4.62% -- 13.75%,
7/31/99 -- 2/15/25, market value
$351,790)........................ 345,000
350,000 Morgan Stanley, 4.80%, 7/1/99,
(Collateralized by $355,280
various U.S. Treasury Securities,
0.00% -- 7.00%,
3/30/00 -- 2/15/08, market value
$357,809)........................ 350,000
355,000 Salomon Smith Barney, 4.90%,
7/1/99, (Collateralized by
$357,935 various U.S. Treasury
Securities, 0.00% -- 6.63%,
1/6/00 -- 8/15/02, market value
$362,180)........................ 355,000
1,350,000 Societe Generale, 4.87%, 7/1/99,
(Collateralized by $1,160,273
various U.S. Treasury Securities,
5.50% -- 12.50%,
7/31/99 -- 8/15/28, market value
$1,377,675)...................... 1,350,000
100,000 Societe Generale, 4.83%, 7/1/99,
(Collateralized by $96,723
various U.S. Treasury Securities,
4.63% -- 11.75%,
11/15/99 -- 11/15/26, market
value $102,080).................. 100,000
235,000 State Street Bank & Trust, 4.80%,
7/1/99, (Collateralized by
$234,505 various U.S. Treasury
Securities, 5.75% -- 8.50%,
12/31/99 -- 10/31/00, market
value $239,730).................. 235,000
1,818,000 Westdeutsche Landesbank, 4.82%,
7/1/99, (Collateralized by
$1,661,953 various U.S. Treasury
Securities, 0.00% -- 11.25%,
8/12/99 -- 2/15/15, market value
$1,856,232)...................... 1,818,000
100,000 Westdeutsche Landesbank, 4.75%,
7/1/99, (Collateralized by
$91,416 various U.S. Treasury
Securities, 0.00% -- 11.25%,
8/12/99 -- 2/15/15, market value
$102,103)........................ 100,000
----------
Total Repurchase Agreements 6,284,000
----------
Total (Amortized Cost $7,612,753)(a) $7,612,753
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $7,675,037.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
11
<PAGE> 14
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
DAILY DEMAND NOTES (18.9%):
Alabama (1.3%):
$ 10,300 McIntosh, IDR for CIBC, 3.75%,
7/1/28*.......................... $ 10,300
7,000 Phenix County, IDR for Mead, AMT,
3.90%, 3/1/31, LOC: Bayerische
Landesbank*...................... 7,000
2,000 Phenix County, IDR for Mead, Series
93-A, AMT, 3.90%, 6/1/28, LOC:
Toronto Dominion Bank*........... 2,000
----------
19,300
----------
Idaho (0.2%):
3,600 Health Facility Authority, Revenue,
St. Lukes Regional Medical Center
Project, 3.40%, 5/1/22, LOC:
Bayerische Landesbank*........... 3,600
----------
Illinois (0.3%):
3,800 Chicago Midway Airport Revenue,
AMT, 3.60%, 1/1/29, LIQ:
Commerzbank A.G.*................ 3,800
----------
Indiana (0.9%):
7,200 Development Financial Authority,
Revenue, PSI Energy, Inc., AMT,
3.50%, 8/1/28, LOC: Morgan
Guaranty Trust*.................. 7,200
5,800 Mt. Vernon, PCR, General Electric,
AMT, 3.75%, 11/1/18*............. 5,800
----------
13,000
----------
Kentucky (4.4%):
6,700 Lexington Fayette Urban County,
Airport Revenue, AMT, 3.60%,
7/1/13, LOC: Local De France*.... 6,700
2,400 Lexington Fayette Urban County,
Airport Revenue, 3.60%, 7/1/28,
MBIA*............................ 2,400
8,000 Louisville and Jefferson County
Regional Airport Authority,
Special Facilities Revenue,
United Parcel Service, Series B,
AMT, 3.50%, 1/1/29*.............. 8,000
51,200 Louisville and Jefferson County
Regional Airport Authority,
Special Facilities Revenue,
United Parcel Service, Series A,
AMT, 3.45%, 1/1/29*.............. 51,200
----------
68,300
----------
Michigan (1.0%):
2,500 Cornell Township Economic
Development Corp., Mead Escanaba,
3.80%, 11/1/16, LOC: Swiss
Bank*............................ 2,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
DAILY DEMAND NOTES, CONTINUED:
Michigan, continued:
$ 400 Delta County Economic Development,
Revenue, Mead Paper, Series C,
3.70%, 12/1/23*, LOC: Bank of
Nova Scotia...................... $ 400
1,200 Farmington Hills Hospital Finance
Authority, Botsford General
Hospital, Series B, 3.45%,
2/15/16, LOC: MBIA*.............. 1,200
2,200 State Strategic Fund, Detroit
Edison, 3.70%, 9/1/30, LOC:
Barclays Bank*................... 2,200
2,520 State Strategic Fund, Dow Chemical,
3.45%, 2/1/09*................... 2,520
1,300 University of Michigan, Hospital
Revenue, Series 92-A, 3.45%,
12/1/19*......................... 1,300
5,000 University of Michigan, Hospital
Revenue, Series A, 3.45%,
12/1/27*......................... 5,000
----------
15,120
----------
Nevada (0.5%):
6,900 Clark County, IDR, AMT, 3.55%,
12/1/22, LOC: ABN AMRO Bank*..... 6,900
----------
New York (0.5%):
7,000 Energy Research and Development
Authority, PCR, Mohawk Power,
Series A, 3.50%, AMT, 12/1/26,
LOC: Toronto Dominion Bank*...... 7,000
----------
North Carolina (3.7%):
8,000 Medical Care Community Hospital
Revenue, Pooled Fund Project,
Series A, 3.60%, 10/1/16*, LOC:
Bank America..................... 8,000
6,900 Person County, PCR, AMT, 3.65%,
11/1/16, LOC: SunTrust Bank*..... 6,900
700 Raleigh Durham Airport Authority,
Series A, 3.45%, 11/1/15, LOC:
NationsBank*..................... 700
36,900 Wake County Industrial Facilities
and Pollution, 3.60%, 6/15/14*,
LOC: Bank of New York............ 36,900
2,800 Wake County, PCR, AMT, 3.90%,
3/1/17, LOC: First Union National
Bank*............................ 2,800
----------
55,300
----------
Oregon (0.4%):
5,700 Port Portland, 3.90%, 6/15/27, LOC:
Bank Of Montreal*................ 5,700
----------
</TABLE>
12
Continued
<PAGE> 15
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
South Carolina (0.5%):
$ 7,400 Florence County, Solid Waste
Disposal and Wastewater
Treatment, AMT, 3.55%, 4/1/28,
LOC: Deutsche Bank A.G.*......... $ 7,400
----------
Texas (3.6%):
4,170 Brazos River Authority, Dow
Chemical, 3.55%, 4/1/30*......... 4,170
34,815 Brazos River Authority, PCR,
Utilities Electric Co. Project,
AMT, 3.60%, 6/1/30, AMBAC*....... 34,815
5,400 Brazos River Authority, PCR,
Utilities Electric Co. Project,
Series A, AMT, 3.55%, 3/1/26,
AMBAC*........................... 5,400
1,300 Brazos River, Harbor Navigation
District Revenue, Dow Chemical
Co. Project, AMT, 3.60%,
5/1/23*.......................... 1,300
4,200 Sabine River Authority, PCR,
Utilities Electric Co. Project,
AMT, 3.60%, 6/1/30, LOC: Union
Bank of Switzerland*............. 4,200
4,075 Sabine River Authority, PCR,
Utilities Electric Co. Project,
Series C, 3.90%, 6/1/30, LOC:
Union Bank of Switzerland*....... 4,075
----------
53,960
----------
Virginia (1.1%):
8,000 Dinwiddie County, IDR, Chaparral
East Project A, AMT, 3.55%,
9/1/28, LOC: NationsBank*........ 8,000
6,700 King George County, IDR, Birchwood
Power Partners, AMT, 3.55%,
11/1/25, LOC: Credit Suisse First
Boston*.......................... 6,700
2,200 King George County, IDR, Birchwood
Power Partners, AMT, 3.55%,
3/1/27, LOC: Credit Suisse First
Boston*:......................... 2,200
----------
16,900
----------
Wyoming (0.5%):
8,000 Lincoln County, Environmental
Revenue, Pacificorp Projects,
AMT, 3.65%, 11/1/25*............. 8,000
----------
Total Daily Demand Notes 284,280
----------
MONTHLY DEMAND NOTES (0.6%):
Arizona (0.3%):
4,500 Chandler, IDR, Parsons Municipal
Project, 3.35%, 12/15/09, LOC:
Bank of America*................. 4,500
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
MONTHLY DEMAND NOTES, CONTINUED:
Michigan (0.1%):
$ 900 Meridian, Economic Development,
Hannah Research and Technology
Center, 3.35%, 11/15/15, LOC:
Comerica Bank*................... $ 900
----------
Vermont (0.2%):
3,600 State Student Assistance Corp.,
Student Loan Revenue, 3.30%,
1/1/04, LOC: National
Westminster*..................... 3,600
----------
Total Monthly Demand Notes 9,000
----------
MUNICIPAL NOTES (4.7%):
Iowa (0.7%):
10,500 State School Cash Anticipation
Program, 4.00%, 6/23/00, INS :
FSA.............................. 10,577
----------
Michigan (0.9%):
4,300 State Housing Development
Authority, AMT, 3.00%, 12/1/99... 4,300
9,675 State Revenue School Loan, 3.50%,
12/1/99.......................... 9,699
----------
13,999
----------
New Mexico (0.7%):
10,000 TRAN, 4.00%, 6/30/00............... 10,074
----------
Ohio (0.1%):
1,750 University of Cincinnati, General
Receipts, BAN, 3.26%, 12/21/99... 1,752
----------
Puerto Rico (0.5%):
7,000 RAN, Series 99-A, 3.50%, 7/30/99... 7,004
----------
Texas (0.4%):
6,642 TRAN, 4.50%, 8/31/99............... 6,661
----------
Wisconsin (1.4%):
10,500 Waukesha School District Tax and
Revenue, 3.90%, 8/20/99.......... 10,503
10,000 West Allis-West, School District,
RAN, 3.60%, 9/21/99.............. 10,006
----------
20,509
----------
Total Municipal Notes 70,576
----------
PUT BONDS (3.1%):
Arizona (1.0%):
15,000 Cochise County, PCR, Arizona
Electric Power Corp., Series A,
AMT, 2.90%, 9/1/24*.............. 15,000
----------
Florida (1.9%):
20,000 Putnam County Development
Authority, PCR, Seminole
Electric, 3.30%, 3/15/14*........ 20,000
</TABLE>
13
Continued
<PAGE> 16
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
PUT BONDS, CONTINUED:
Florida, continued:
$ 9,000 Putnam County Development
Authority, Seminole Electric Co.,
3.13%, 12/15/09*................. $ 9,000
----------
29,000
----------
Oregon (0.2%):
3,235 State Housing and Community
Mortgage Revenue, Series 1,
3.15%, 12/2/99................... 3,235
----------
Total Put Bonds 47,235
----------
TAX FREE COMMERCIAL PAPER (15.2%):
Alaska (1.7%):
10,000 Valdez Marine Terminal, Series
94-A, 3.20%, 8/2/99, ARCO........ 10,000
15,000 Valdez Marine Terminal, Series C,
3.10%, 8/2/99, ARCO.............. 15,000
----------
25,000
----------
Arizona (0.6%):
8,850 Mesa Municipal Development Corp.,
Series 85, 3.10%, 9/1/99, LOC:
West Deutsche Landesbank......... 8,850
----------
Florida (0.4%):
6,500 Municipal Power Authority, 3.25%,
8/11/99, LOC: First Union
National Bank.................... 6,500
----------
Georgia (1.2%):
18,000 Burke County, PCR, Ogle Thorpe
Power Corp., Series B, 3.15%,
8/3/99, AMBAC.................... 18,000
----------
Indiana (1.3%):
20,000 Developmental Finance Authority,
Pure Air on Lake Project, Series
A, 3.40%, 10/1/99, LOC: National
Westminster...................... 20,000
----------
Michigan (0.4%):
5,790 University of Michigan, 3.25%,
8/11/99.......................... 5,790
----------
Missouri (0.6%):
8,700 State Environmental Authority,
Union Electric Co., 3.05%,
1/21/99, LOC: Union Bank of
Switzerland...................... 8,700
----------
Nebraska (0.4%):
6,000 Lincoln Electric Revenue, Series
95, 3.05%, 8/2/99, LOC: Morgan
Guaranty Trust................... 6,000
----------
Ohio (2.3%):
2,500 Air Quality Development Authority,
Cleveland Electric, Inc., 3.80%,
8/2/99, FGIC..................... 2,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER, CONTINUED:
Ohio, continued:
$ 8,100 Toledo Lucas County, CSX
Transportation, 3.10%, 8/2/99,
LOC: Bank Of Nova Scotia......... $ 8,100
3,400 Water Development Authority,
Cleveland Electric, Inc., 3.75%,
8/9/99, FGIC..................... 3,400
11,000 Water Development Authority,
Duquesne Light, Series 1988,
3.15%, 7/1/99, LOC: Toronto
Dominion......................... 11,000
10,850 Water Development Authority, PCR,
Duquesne Light, Series 88, AMT,
3.15%, 9/1/99, LOC: Toronto
Dominion......................... 10,850
----------
35,850
----------
Pennsylvania (2.0%):
15,345 Carbon County, Panther Creek,
Series 90-B, AMT, 3.25%,
10/4/99.......................... 15,345
14,050 Venango Industrial Development
Authority, Scrubgrass, 3.20%,
8/4/99, LOC: National
Westminster...................... 14,050
----------
29,395
----------
Texas (2.8%):
23,000 Brazos River Authority, Utilities
Revenue, 2.80%, 7/8/99, LOC:
Canadian Imperial Bank of
Commerce......................... 23,000
5,000 Brazos River Authority, Utilities
Revenue, 3.25%, 7/20/99, LOC:
Canadian Imperial Bank of
Commerce......................... 5,000
15,000 TRAN, Series 1998, 2.95%,
7/15/99.......................... 15,000
----------
43,000
----------
West Virginia (1.5%):
16,500 State Public Authority Energy
Revenue, Morgantown Assoc.
Project, AMT, 3.05%, 9/1/99, LOC:
Swiss Bank....................... 16,500
6,000 State Public Authority Energy
Revenue, Morgantown Assoc.
Project, AMT, 3.05%, 9/7/99, LOC:
Swiss Bank....................... 6,000
----------
22,500
----------
Total Tax Free Commercial Paper 229,585
----------
WEEKLY DEMAND NOTES (58.0%):
Alabama (0.3%):
4,800 Decatur, IDR, Solid Waste Disposal,
Trico Steel, AMT, 3.55%, 1/1/27,
LOC: Chase Manhattan Bank*....... 4,800
----------
</TABLE>
14
Continued
<PAGE> 17
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Arkansas (2.1%):
$ 24,200 Clark County, Solid Waste Disposal
Revenue, Reynolds Metals Co.
Project, AMT, 3.40%, 8/1/22, LOC:
SunTrust Bank*................... $ 24,200
8,100 Clark County, Solid Waste Disposal
Revenue, AMT, 3.40%, 8/1/22, LOC:
SunTrust Bank*................... 8,100
----------
32,300
----------
Colorado (1.3%):
18,900 Student Obligation Bond Authority,
Series 90-A, AMT, 3.55%, 9/1/24,
SLMA*............................ 18,900
----------
Delaware (0.9%):
13,500 Economic Development Authority
Revenue, Series A, AMT, 3.55%,
8/1/29, LOC: Canadian Imperial
Bank of Commerce*................ 13,500
----------
District of Columbia (0.6%):
9,705 Metro Washington D.C. Airports
Authority Trust Receipts, 3.74%,
10/1/16, LIQ: Societe
Generale*........................ 9,705
----------
Florida (6.4%):
89,200 City of Gulf Breeze Health Care,
3.77%, 1/1/24*, LOC: Anchor
National Life Insurance Co....... 89,200
6,245 Orange County Health Facilities
Authority, 3.65%, 12/1/23, LOC:
SunTrust Bank Central Florida*... 6,245
2,750 Orange County Health Facilities
Authority, 3.65%, 11/15/26, LOC:
Rabobank Netherlands*............ 2,750
----------
98,195
----------
Georgia (2.4%):
8,555 Crisp County, Solid Waste, Series
1998, 3.80%, 1/1/02*............. 8,555
4,500 Fulton County Housing Authority,
3.85%, 3/1/39, LOC: Wachovia
Bank*............................ 4,500
3,735 Gwinnett County Housing Authority,
Herrington Woods Apts., Series
96-A, AMT, 3.60%, 9/15/26, LOC:
KeyBank*......................... 3,735
5,000 Macon-Bibb County Hospital
Authority Revenue, 3.75%, 8/1/18,
LOC: SunTrust Bank*.............. 5,000
2,300 Municipal Gas Authority, Series A,
3.50%, 11/1/06*, LOC: Wachovia
Bank............................. 2,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Georgia, continued:
$ 2,000 Municipal Gas Authority, Series B,
3.30%, 9/1/07*, LOC: Morgan
Guaranty......................... $ 2,000
9,800 Municipal Gas Authority, Series C,
3.50%, 11/1/07*, LOC: Wachovia
Bank............................. 9,800
----------
35,890
----------
Illinois (5.9%):
5,000 Carol Stream, Multifamily Revenue,
AMT, 3.65%, 3/15/27, LIQ: FNMA
Collection*...................... 5,000
19,316 Chicago O'Hare International
Airport Revenue, Second Lien,
Series B, AMT, 3.60%, 1/1/18,
LOC: Societe Generale*........... 19,316
10,000 Chicago School Board of Education,
Series 3, 3.60%, 12/1/27,
AMBAC*........................... 10,000
7,640 Jacksonville Industrial Project
Revenue, AGI Inc. Project, AMT,
3.75%, 2/1/26, LOC: Bank of
America*......................... 7,640
15,000 State Development Finance
Authority, Aventist Health
Systems, Series A, 3.75%,
11/15/27, MBIA*.................. 15,000
11,800 State Development Finance
Authority, Citizens Utility Co.
Project, AMT, 3.55%, 5/1/32*..... 11,800
8,700 State Development Finance
Authority, Revenue, Aurora
Central Catholic High School,
3.55%, 4/1/24, LOC: Northern
Trust*........................... 8,700
5,640 State Development Finance
Authority, Revenue, Special
Facility, Little City Foundation,
3.55%, 2/1/19, LOC: LaSalle
National Bank*................... 5,640
5,000 Will and Kankakee County
Development Authority, IDR,
3.75%, 12/1/18, LOC: PNC Bank*... 5,000
----------
88,096
----------
Indiana (1.4%):
3,000 Jasper Economic Development
Revenue, Best Chairs, Inc.
Project, AMT, 3.75%, 3/1/19, LOC:
PNC Bank*........................ 3,000
1,275 Purdue University and Indiana
University Revenue, Student Fee,
Series E, 3.50%, 7/1/11, LOC:
Northern Trust Bank*............. 1,275
</TABLE>
15
Continued
<PAGE> 18
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Indiana, continued:
$ 16,200 Rockport, PCR, Indiana & Michigan
Electric Co., Series A, 3.55%,
8/1/14, LOC: Swiss Bank*......... $ 16,200
----------
20,475
----------
Iowa (1.5%):
15,760 Finance Authority Revenue, Private
School Facility, 3.70%, 6/1/19,
LOC: Allied Irish Bank*.......... 15,760
7,000 Finance Authority Revenue, Wheaton
Franciscan, Series B, 3.30%,
8/15/24, MBIA*................... 7,000
----------
22,760
----------
Kentucky (1.1%):
9,000 Henderson County, Solid Waste
Disposal Revenue, Hudson Foods
Inc. Project, AMT, 3.70%, 3/1/15,
LOC: Rabobank Netherlands*....... 9,000
7,600 Mayfield, League of Cities Lease
Finance Program, 3.60%, 7/1/26,
LOC: PNC Bank*................... 7,600
----------
16,600
----------
Maine (2.3%):
7,000 Educational Loan Marketing Corp.,
Series A-1, 3.40%, 5/1/29,
AMBAC*........................... 7,000
6,900 Educational Loan Marketing Corp.,
Series A-2, AMT, 3.40% 5/1/29,
AMBAC*........................... 6,900
20,000 Educational Loan Marketing Corp.,
Series A-2, AMT, 3.40%,
6/1/32*.......................... 20,000
----------
33,900
----------
Massachusetts (1.6%):
23,860 St. Grant Anticipation Notes, Trust
Receipts, Series A-36, 3.55%,
12/15/17, MBIA*.................. 23,860
----------
Michigan (7.3%):
9,600 Detroit Sewage Disposal, Series B,
3.30%, 7/1/23, MBIA*............. 9,600
20,500 Higher Education Student Loan,
Series B, AMT, 3.40%, 10/1/13,
AMBAC*........................... 20,500
7,000 State Hospital Finance Authority,
Charity Obligation, 3.35%,
11/1/11*......................... 7,000
3,500 State Hospital Finance Authority,
Hospital Equipment Loan Program,
Series A, 3.35%, 12/1/23, LOC:
First of America Bank*........... 3,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Michigan, continued:
$ 200 State Housing Development
Authority, Limited Obligation,
Woodland Meadows Project, AMT,
3.60%, 3/1/13, LOC: Swiss
Bank*............................ $ 200
8,600 State Strategic Fund, Limited
Obligation, 3.55%, 3/1/39, LOC:
Michigan National Bank*.......... 8,600
5,000 State Strategic Fund, Limited
Obligation, Petoskey Plastics
Inc. Project, AMT, 3.85%, 8/1/16,
LOC: Comerica Bank*.............. 5,000
400 State Strategic Fund, Limited
Obligation, Pyper Products Corp.
Project, AMT, 3.85%, 10/1/18,
LOC: Comerica Bank*.............. 400
2,800 State Strategic Fund, Limited
Obligation, Quincy Inc. Project,
AMT, 3.85%, 12/1/22*............. 2,800
3,000 State Strategic Fund, Limited
Obligation, Saginaw Products
Corp. Project, AMT, 3.85%,
9/1/17*.......................... 3,000
9,200 State Strategic Fund, Limited
Obligation, Series A-8, 3.55%,
9/1/21*.......................... 9,200
2,795 State Strategic Fund, Limited
Obligation, Wayne Disposal
Oakland Project, AMT, 3.60%,
3/1/05, LOC: Credit Suisse-First
Boston*.......................... 2,795
3,000 State Strategic Fund, Van Andel
Research Institute Project,
3.55%, 11/1/27, LOC: Michigan
National Bank*................... 3,000
2,500 State University, GO, Series A-2,
3.40%, 8/15/22*.................. 2,500
14,040 Wayne County, Airport Revenue
(Detroit Airport), Series B, AMT,
3.40%, 12/1/16, LOC: Bayerische
Landesbank*...................... 14,040
19,400 Wayne County, Airport Revenue,
(Detroit Airport), Series A, AMT,
3.50%, 12/1/16, LOC: Bayerische
Landesbank*...................... 19,400
----------
111,535
----------
Minnesota (0.2%):
1,400 Higher Education Facility Authority
Revenue, Carleton College, Series
3-L2, 3.50%, 11/1/12, LOC:
Norwest Bank Minnesota*.......... 1,400
</TABLE>
16
Continued
<PAGE> 19
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Minnesota, continued:
$ 900 Minneapolis Convention Center,
Sales Tax Revenue, Series B,
3.60%, 12/1/17, LOC: Norwest Bank
Minnesota*....................... $ 900
----------
2,300
----------
Nevada (0.8%):
11,500 Clark County, Airport Revenue, Sub
Lien, Series B, AMT, 3.40%,
7/1/28, MBIA*.................... 11,500
----------
North Carolina (2.3%):
19,520 Charlotte Airport Revenue, Series
A, AMT, 3.40%, 7/1/17, MBIA*..... 19,520
5,000 Mecklenburg County, Series C,
3.70%, 2/1/17, LOC: First Union
National Bank*................... 5,000
6,300 Medical Care Community, Hospital
Revenue, AMT, 3.65%, 8/15/18,
LOC: SunTrust Bank*.............. 6,300
3,085 Medical Care Community, Hospital
Revenue, Memorial Hospital
Project, 3.70%, 1/15/26, LOC:
NationsBank*..................... 3,085
----------
33,905
----------
Ohio (5.8%):
6,000 City of Cleveland, Airport System
Revenue Bonds, Series D, AMT,
3.40%, 1/1/27, LOC: Toronto
Dominion Bank*................... 6,000
1,900 Clinton County, Hospital Revenue,
Pooled Financial Programs, Series
98, 3.50%, 6/1/28, LOC: Fifth
Third Bank*...................... 1,900
1,425 Ross County, Hospital Revenue,
Adena Health Systems, 3.55%,
12/1/23, LOC: Fifth Third
Bank*............................ 1,425
21,300 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, Series A, AMT,
3.35%, 4/1/28, LOC: Societe
Generale*........................ 21,300
6,200 State Air Quality Development
Authority, JGM Funding Ltd.
Partnership, Series B, 3.45%,
4/1/28, LOC: Societe Generale*... 6,200
3,200 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, AMT, 3.35%, 4/1/29,
LOC: Societe Generale*........... 3,200
3,300 State Water Development Authority,
Timken Co. Project, 3.50%,
6/1/01, LOC: Wachovia Bank and
Trust*........................... 3,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Ohio, continued:
$ 45,100 Student Loan Funding Corp.,
Cincinnati, Series 98-A2, AMT,
3.45%, 8/1/10, LIQ: Bank of
America*......................... $ 45,100
----------
88,425
----------
Oregon (1.7%):
25,000 State GO, Series 73 G, 3.45%,
12/1/18, LIQ: Morgan Guaranty
Trust*........................... 25,000
----------
Pennsylvania (1.9%):
6,500 Allegheny County, Hospital
Development Authority Revenue,
Margaret Memorial Hospital,
3.35%, 10/1/21, LOC: Mellon
Bank*............................ 6,500
5,150 Allegheny County, IDR, Eye and Ear
Properties Corp., 4.65%, 2/1/15,
LOC: PNC Bank*................... 5,150
1,500 Allegheny County, IDR, United
Jewish Federation, Series B,
3.65%, 10/1/25, LOC: PNC Bank*... 1,500
6,500 Indiana County, IDA, PCR, Conemaugh
Project, Series A, AMT, 3.45%,
6/1/27, LOC: Union Bank of
Switzerland*..................... 6,500
375 New Castle Area Jameson Hospital,
3.85%, 7/1/26, FSA*.............. 375
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 98-D,
3.75%, 6/1/10, LOC: PNC Bank*.... 6,300
----------
28,825
----------
South Carolina (0.3%):
3,800 Piedmont Municipal Power Agency,
Electric Revenue, Series C,
3.45%, 1/1/19, MBIA*............. 3,800
----------
South Dakota (0.2%):
2,690 Housing Development Authority,
Homeownership Mortgage, Series E,
AMT, 3.85% 12/14/00*............. 2,690
----------
Tennessee (1.0%):
10,500 Montgomery County, Public Building,
3.80%, 7/1/19, LOC:
NationsBank*..................... 10,500
4,100 Nashville & Davidson County, Health
and Education Facilities Board
Revenue, Belmont University
Project, 3.75%, 12/1/22*......... 4,100
----------
14,600
----------
</TABLE>
17
Continued
<PAGE> 20
- --------------------------------------------------------------------------------
One Group Mutual Funds
Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Texas (5.7%):
$ 5,765 Brazos River Authority, PCR, AMT,
3.55%, 7/1/22, MBIA*............. $ 5,765
14,100 Capital Health Facilities
Development Corp., Island on Lake
Travis Ltd. Project, AMT, 3.40%,
12/1/16, LOC: Credit Suisse First
Boston*.......................... 14,100
9,400 Harris County, Toll Road, Sub Lien,
Series H, 3.40%, 8/1/20, SPA:
Morgan Guaranty Trust*........... 9,400
28,800 Panhandle Plains Higher Education,
Inc., Student Loan Revenue,
Series A, AMT, 3.40% 6/1/21,
SLMA*............................ 28,800
9,400 Panhandle Plains Higher Education,
Inc., Student Loan Revenue,
Series A, AMT, 3.40%, 6/1/23,
SLMA*............................ 9,400
12,200 Panhandle Plains Higher Education,
Inc. Student Loan Revenue, Series
X, AMT, 3.40%, 6/1/27, SLMA*..... 12,200
6,200 South State Higher Education
Authority, Inc., 3.40%, 12/1/27,
MBIA*............................ 6,200
----------
85,865
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Virginia (0.4%):
$ 6,515 Roanoke Industrial Development
Authority, Hospital Revenue,
Roanoke Memorial Hospital, Series
C, 3.70%, 7/1/19, SPA: First
Union National Bank*............. $ 6,515
----------
Washington (1.1%):
17,100 Port Seattle, Revenue, Sub Lein,
AMT, 3.55%, 9/1/22, LOC: Canadian
Imperial Bank of Commerce*....... 17,100
----------
Wisconsin (1.5%):
22,055 Southeast Professional Baseball
Park, District Sales Tax Revenue,
Series 104, 3.77%, 12/15/23,
MBIA*............................ 22,055
----------
Total Weekly Demand Notes 873,096
----------
Total (Amortized Cost $1,513,772)(a) $1,513,772
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $1,505,689.
(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 30,1999.
<TABLE>
<S> <C>
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
BAN Bond Anticipation Notes
FGIC Insured by Financial Guaranty Insurance Corp.
FNMA Fannie Mae
FSA Insured by Financial Security Assurance
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
LIQ Liquidity Agreement
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
RAN Revenue Anticipation Notes
SLMA Student Loan Marketing Association
SPA Standby Purchase Agreement
TRAN Tax Revenue Anticipation Notes
</TABLE>
See notes to financial statements.
18
<PAGE> 21
- --------------------------------------------------------------------------------
One Group Mutual Funds
Michigan Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
DAILY DEMAND NOTES (12.7%):
Michigan (12.7%):
$ 870 Cornell Township, EDC, 3.80%,
11/1/16, LOC: Bank of America*... $ 870
1,000 Delta County, EDC, Environmental
Improvement, Revenue, Mead-
Escanaba Paper, Series F, 3.80%,
12/1/23, LOC: Union Bank of
Switzerland*..................... 1,000
1,000 Delta County, EDC, Environmental
Improvement, Revenue, Mead-
Escanaba Paper, Series C, 3.70%,
12/1/23, LOC: Bank of Nova
Scotia*.......................... 1,000
3,200 Delta County, EDC, Environmental
Improvement, Revenue, Mead-
Escanaba Paper, 3.45%, 12/1/13,
LOC: Bank of Nova Scotia*........ 3,200
2,500 Farmington Hills, Hospital Finance
Authority, Hospital Revenue,
Botsford General Hospital, Series
B, 3.45%, 2/15/16, Credit
Support: MBIA*................... 2,500
5,600 Midland County, EDC, Revenue, Dow
Chemical Project, Series B,
3.75%, 12/1/15*.................. 5,600
5,000 State Strategic Fund, PCR,
Consumers Power Project, 3.40%,
4/15/18, LOC: Union Bank of
Switzerland*..................... 5,000
400 University of Michigan, Revenue,
Hospital, Series A, 3.45%,
12/1/19*......................... 400
800 University of Michigan, Revenue,
Hospital, 3.45%, 12/1/27*........ 800
--------
Total Daily Demand Notes 20,370
--------
MONTHLY DEMAND NOTES (1.2%):
Michigan (1.2%):
1,900 Meridian, EDC, Hannah Research &
Technology Center, 3.35%,
11/15/15, LOC: Comerica Bank*.... 1,900
--------
Total Monthly Demand Notes 1,900
--------
MUNICIPAL BONDS (23.1%):
Michigan (23.1%):
4,000 Detroit Sewage Disposal Revenue,
7.13%, 7/1/19, FGIC*............. 4,060
1,000 Jackson Public Schools, 4.00%,
7/6/00, LOC: Comerica Bank....... 1,004
5,000 Jackson Public Schools, GO, 4.25%,
7/2/99, LOC: Comerica Bank....... 5,000
5,800 Kalamazoo City School District,
Series C, 3.75%, 9/16/99, LOC:
First of America Bank............ 5,805
5,130 Municipal Bond Authority, 4.00%,
6/30/00.......................... 5,158
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$ 5,210 State Building Authority, Revenue,
Facilities Program, Series 1,
4.00%, 10/15/99.................. $ 5,226
5,000 State Hospital Finance Authority
Revenue, Metropolitan Hospital,
Series B, 8.13%, 7/1/18*......... 5,150
4,000 State Housing Development
Authority, AMT, Series B, 3.00%,
12/1/99.......................... 4,000
1,610 Wayne County, GO, Transportation
Fund, Series A, 4.00%, 10/1/99... 1,612
--------
Total Municipal Bonds 37,015
--------
TAX FREE COMMERCIAL PAPER (16.4%):
Michigan (16.4%):
5,740 Cornell Township, EDC, IDR, Mead-
Escanaba Paper, 3.10%, 8/9/99,
LOC: Credit Suisse First
Boston........................... 5,740
7,600 State Housing Development
Authority, 3.30%, 7/19/99, LOC:
Heleba Bank...................... 7,600
9,000 University Of Michigan, 3.25%,
8/11/99.......................... 9,000
4,000 University Of Michigan Regents,
3.10%, 8/23/99................... 4,000
--------
Total Tax Free Commercial Paper 26,340
--------
WEEKLY DEMAND NOTES (49.9%):
Michigan (49.9%):
190 Ann Arbor, EDC, Revenue, Webers,
Inc. Project, 3.60%, 5/1/00, LOC:
Comerica Bank*................... 190
8,800 Detroit Sewage Disposal, Revenue,
Series B, 3.30%, 7/1/23, MBIA*... 8,800
2,100 Grand Rapids Water Supply, 3.40%,
1/1/20*, FGIC.................... 2,100
2,400 Higher Education, Student Loan
Series XII-B, 3.40%, 10/1/13,
AMBAC............................ 2,400
4,100 Higher Education Student Loan,
Series XII-D, 3.40%,10/1/15,
AMBAC*........................... 4,100
4,600 Jackson County, EDC, Revenue,
Industrial Steel Treating Co.
Project, 3.85%, 6/1/17, LOC:
Comerica Bank*................... 4,600
1,000 Kalamazoo County, EDC, Revenue, WBC
Properties Ltd. Project, 3.65%,
9/1/15, LOC: Old Kent Bank &
Trust*........................... 1,000
4,000 Kalamazoo County, EDC, Revenue,
Friendship Village, Series B,
3.55%, 5/15/27, LOC: Lasalle
National Bank*................... 4,000
</TABLE>
19
Continued
<PAGE> 22
- --------------------------------------------------------------------------------
One Group Mutual Funds
Michigan Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Michigan, continued:
$ 7,700 Michigan State University, Revenue,
Series A-2, 3.40%, 8/15/22*...... $ 7,700
2,575 Oakland County, EDC, Revenue, IBC
North America, Inc. Project,
3.85%, 7/1/18, LOC: Comerica
Bank*............................ 2,575
1,700 State Hospital Authority, Revenue,
Hospital Equipment Loan Program,
Series A, 3.35%, 12/1/23, LOC:
First of America Bank*........... 1,700
1,650 State Hospital Finance Authority,
Hospital Equipment Loan Program,
Series A, 3.35%, 12/1/23*........ 1,650
300 State Hospital Finance Authority,
Hospital Equipment Loan Program,
3.55%, 6/1/01*................... 300
5,130 State Hospital Finance Authority,
Revenue, Hospital-Charity
Obligations, Series E, 3.35%,
11/1/01*......................... 5,130
6,400 State Housing Development
Authority, Rental Housing
Revenue, Series B, 3.40%, 4/1/19,
LOC: Landerbank Hessen Thur
Giro*............................ 6,400
4,800 State Housing Development
Authority, Revenue, Woodland
Meadows Project, 3.60%, 3/1/13,
LOC: Swiss Bank*................. 4,800
4,025 State Housing Development
Authority, Revenue, Laurel
Valley, 3.50%, 12/1/07*.......... 4,025
1,800 State Strategic Finance Authority,
Hospital Equipment Loan Program,
Series A, 3.35%, 12/1/23*........ 1,800
1,500 State Strategic Fund, IDR, AMT, C-
Tec, Inc. Project, 3.80%,
10/1/11, LOC: SunTrust Bank*..... 1,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Michigan, continued:
$ 1,100 State Strategic Fund, PCR,
Consumers Power Co. Project-A,
3.50%, 9/1/00, LOC: Union Bank of
Switzerland*..................... $ 1,100
3,300 State Strategic Fund, Revenue,
Pyper Products Corp. Project,
3.85%, 10/1/18, LOC: Comerica*... 3,300
500 State Strategic Fund, Revenue, Van
Andel Research Institute, 3.55%,
11/1/27*......................... 500
1,800 State Strategic Fund, Revenue, Van
Andel Research Institute, 3.55%,
3/1/39, LOC: Michigan National
Bank*............................ 1,800
200 State Strategic Fund, Revenue, AMT,
Quincy Street, Inc. Project,
3.85%, 12/1/22, LOC: Comerica
Bank*............................ 200
1,025 State Strategic Fund, Revenue, AMT,
Ironwood Plastics, Inc. Project,
3.70%, 11/1/11, LOC: First of
America Bank*.................... 1,025
1,605 State Strategic Fund, Revenue, AMT,
Dennenlease L C Project, 3.70%,
4/1/10, LOC: Old Kent Bank &
Trust*........................... 1,605
5,500 State Strategic Fund, Solidwaste
Disposal Revenue, Grayling
Generating Project, 3.50%,
1/1/14, LOC: Barclays Bank New
York*............................ 5,500
200 Wayne Charter County, Airport
Revenue, AMT, Detroit
Metropolitan County, Series B,
3.40%, 12/1/16, LOC: Bayerische
Landesbank*...................... 200
--------
Total Weekly Demand Notes 80,000
--------
Total (Amortized Cost $165,625)(a) $165,625
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $160,312.
(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 on an index of market rates. The
rate reflected on the Schedule of Portfolio Investments is the rate in
effect on June 30, 1999.
<TABLE>
<S> <C> <C> <C>
AMT Alternative Minimum Tax IDR Industrial Development Revenue
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
EDC Economic Development Corporation MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
GO General Obligation
</TABLE>
See notes to financial statements.
20
<PAGE> 23
- --------------------------------------------------------------------------------
One Group Mutual Funds
Ohio Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
ANTICIPATION NOTES (13.2%):
Ohio (13.2%):
$ 1,000 Lebanon, Electric System, GO,
3.23%, 9/2/99.................... $ 1,000
2,700 Orange City School District, 3.46%,
8/18/99.......................... 2,701
1,000 Solon, GO, 3.60%, 6/15/00.......... 1,003
1,300 Union County, 3.61%, 6/15/00....... 1,303
3,250 University of Cincinnati, General
Receipts, 3.26%, 12/21/99........ 3,254
3,000 University of Cincinnati, General
Receipts, 3.14%, 3/1/00.......... 3,005
--------
Total Anticipation Notes 12,266
--------
DAILY DEMAND NOTES (13.9%):
Ohio (13.9%):
2,400 Franklin County, Franciscan
Sister -- St. Anthony Health
System, 3.80%, 7/1/15, LOC:
Chemical Bank*................... 2,400
400 Paulding, Solid Waste, Lafarge
Corp., 3.65%, 8/1/26, LOC: Royal
Bank of Canada*.................. 400
400 State Air Quality Development
Authority, 3.80%, 10/1/01, LOC:
Deutsche Bank A.G.*.............. 400
3,950 State Air Quality Development
Authority, Cincinnati Gas &
Electric, 3.50%, 12/1/15, LOC:
J.P. Morgan*..................... 3,950
3,900 State Air Quality Development
Authority, Cincinnati Gas &
Electric, Series A, 3.50%,
12/1/15, LOC: Union Bank of
Switzerland*..................... 3,900
1,100 State Air Quality Development
Authority, Cincinnati Gas &
Electric, Series A, 3.35%,
9/1/30, LOC: ABN AMRO Bank*...... 1,100
400 State, PCR, 3.50%, 5/1/22, GTY:
British Petroleum*............... 400
400 Water Development Authority, Series
B, Mead Paper Co., 3.80%,
11/1/15, LOC: Bank of America*... 400
--------
Total Daily Demand Notes 12,950
--------
MUNICIPAL BONDS (6.5%):
Ohio (1.1%):
1,000 Toledo, Sewer Improvement Revenue,
Class B, 3.20%, 11/15/99, MBIA... 1,000
--------
Puerto Rico (5.4%):
5,000 RAN, Series 99-A, 3.50%, 7/30/99... 5,003
--------
Total Municipal Bonds 6,003
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER (7.5%):
Ohio (7.5%):
$ 3,000 Lucas County, Toledo, CSX, 3.10%,
8/2/99, LOC: Bank Of Nova
Scotia........................... $ 3,000
2,000 State Air Quality Development
Authority, Cleveland Electric
Illuminating Co., Series B,
3.05%, 7/8/99.................... 2,000
2,000 State Air Quality Development
Authority, Cleveland Electric
Illuminating Co., Series B,
3.05%, 9/1/99.................... 2,000
--------
Total Tax Free Commercial Paper 7,000
--------
WEEKLY DEMAND NOTES (58.8%):
Ohio (58.8%):
1,300 Cleveland Airport System, Series D,
Airport Revenue, AMT, 3.40%,
1/1/27, LOC: Toronto Dominion
Bank*............................ 1,300
5,000 Cleveland Stadium Project P-Floats,
3.77%, 11/15/22, AMBAC*.......... 5,000
4,100 Clinton County, Hospital Revenue,
3.50%, 6/1/28, LOC: Fifth Third
Bank*............................ 4,100
1,300 Cuyahoga County, Hospital Revenue,
Cleveland Clinic Foundation,
Series A, 3.45%, 1/1/26, LOC:
Morgan Guaranty*................. 1,300
300 Cuyahoga County, IDR, Allen Group,
Inc., 3.60%, 4/1/12, LOC:
Dresdner Bank AG*................ 300
4,335 Cuyahoga County, Revenue, 3.60%,
12/1/12, LOC: National City
Bank*............................ 4,335
1,000 Franklin County, Inland Products,
Inc., 3.75%, 6/1/04, LOC: PNC
Bank*............................ 1,000
1,500 Hamilton County, Hospital
Facilities Revenue, Children's
Hospital Medical Center, 3.60%,
5/15/17, LOC: PNC Bank*.......... 1,500
2,825 Hamilton County, Hospital
Facilities Revenue, Health
Alliance of Cincinnati, Series B,
3.35%, 1/1/18, MBIA*............. 2,825
1,000 Hamilton County, Hospital
Facilities Revenue, Health
Alliance, Series F, 3.35%,
1/1/18, MBIA*.................... 1,000
5,000 Housing Finance Agency, Project 98
A-1, 3.80%, 7/1/18, LOC: U.S.
Bank, N.A.*...................... 4,999
4,000 Housing Finance Agency, Revenue,
Series #15, 3.55%, 9/1/19,
FSA*............................. 4,000
</TABLE>
21
Continued
<PAGE> 24
- --------------------------------------------------------------------------------
One Group Mutual Funds
Ohio Municipal Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Ohio, continued:
$ 3,000 Housing Finance Agency, Spring
Valley Apartments, 3.60%,
12/15/29, LOC: Keybank*.......... $ 3,000
4,963 Montgomery County, Revenue, 3.65%,
1/1/29, LOC: Federal Home Loan
Bank*............................ 4,963
2,000 Ohio State University, General
Receipts, Series B, 3.55%,
12/1/06, SBPA: National
Westminster Bank*................ 2,000
1,950 Ross County, Hospital Facilities,
Medical Center Project, 3.55%,
12/1/20, LOC: Fifth Third
Bank*............................ 1,950
700 Ross County, Hospital Revenue,
3.55%, 12/1/23, LOC: Fifth Third
Bank*............................ 700
1,300 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, AMT, 3.35%, 4/1/29,
LOC: Societe Generale*........... 1,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- ---------- ----------------------------------- ----------
<C> <S> <C>
WEEKLY DEMAND NOTES, CONTINUED:
Ohio, continued:
$ 3,600 State Air Quality Development
Authority, JMG Funding Ltd.
Partnership, Series A, AMT,
3.35%, 4/1/28, LOC: Societe
Generale*........................ $ 3,600
800 State Air Quality Development
Authority, Revenue Bond, Timken
Co. Project, AMT, 3.50%, 6/1/01,
LOC: Wachovia Bank*.............. 800
1,900 State Water Development Authority,
Timken Co. Project, 3.50%,
6/1/01, LOC: Wachovia Bank*...... 1,900
2,700 Student Loan Funding Corp.
Cincinnati, Series 1998-A2,
3.45%, 8/1/10, LOC: Bank of
America*......................... 2,700
--------
Total Weekly Demand Notes 54,572
--------
Total (Amortized Cost $92,791)(a) $ 92,791
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $92,925.
(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, 1999.
<TABLE>
<S> <C>
AMBAC Insured by AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
FSA Insured by Financial Security Assurance
GO General Obligation
GTY Guaranty
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
SBPA Stand by Bond Purchase Agreement
</TABLE>
See notes to financial statements.
22
<PAGE> 25
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1999
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
U.S. TREASURY MICHIGAN OHIO
PRIME SECURITIES MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND FUND
------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost.......... $8,668,574 $1,328,753 $1,513,772 $165,625 $92,791
Repurchase agreements, at cost.......... -- 6,284,000 -- -- --
---------- ---------- ---------- -------- -------
Total................................... 8,668,574 7,612,753 1,513,772 165,625 92,791
Cash.................................... 1 103,071 187 60 --
Interest receivable..................... 32,779 21,987 6,253 1,297 513
Receivable for capital shares issued.... 756 1 -- -- --
---------- ---------- ---------- -------- -------
TOTAL ASSETS............................ 8,702,110 7,737,812 1,520,212 166,982 93,304
---------- ---------- ---------- -------- -------
LIABILITIES:
Cash Overdraft.......................... -- -- -- -- 83
Dividends payable....................... 31,631 24,000 3,482 353 214
Payable to brokers for investments
purchased............................. 83,956 34,120 10,074 6,163 --
Payable for capital shares redeemed..... 1,322 1 -- -- --
Accrued expenses and other payables:
Investment advisory fees............ 2,269 1,834 335 27 18
Administration fees................. 1,062 926 174 17 8
12b-1 fees.......................... 1,159 767 151 53 16
Other............................... 1,550 1,127 307 57 40
---------- ---------- ---------- -------- -------
TOTAL LIABILITIES....................... 122,949 62,775 14,523 6,670 379
---------- ---------- ---------- -------- -------
NET ASSETS:
Capital................................. 8,578,895 7,674,643 1,505,812 160,313 93,001
Undistributed (distributions in excess
of) net investment income............. 266 394 (123) -- (75)
Accumulated undistributed net realized
gains (losses) from investment
transactions.......................... -- -- -- (1) (1)
---------- ---------- ---------- -------- -------
NET ASSETS.............................. $8,579,161 $7,675,037 $1,505,689 $160,312 $92,925
========== ========== ========== ======== =======
NET ASSETS
Class I............................. $5,398,206 $5,599,894 $1,077,205 $ 91,211 $55,745
Class A............................. 3,171,028 2,073,442 428,448 69,101 37,180
Class B............................. 9,854 1,012 -- -- --
Class C............................. -- 684 -- -- --
Service Class....................... 73 5 36 -- --
---------- ---------- ---------- -------- -------
Total................................... $8,579,161 $7,675,037 $1,505,689 $160,312 $92,925
========== ========== ========== ======== =======
OUTSTANDING UNITS OF BENEFICIAL INTEREST (UNITS)
Class I............................. 5,397,983 5,599,575 1,077,274 91,211 55,777
Class A............................. 3,170,980 2,073,370 428,497 69,102 37,200
Class B............................. 9,853 1,012 -- -- --
Class C............................. -- 684 -- -- --
Service Class....................... 73 5 36 -- --
---------- ---------- ---------- -------- -------
Total................................... 8,578,889 7,674,646 1,505,807 160,313 92,977
========== ========== ========== ======== =======
Net Asset Value -- offering and
redemption price per share (Class I,
Class A, Class B, Class C, and Service
Class shares)......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ======== =======
</TABLE>
See notes to financial statements.
23
<PAGE> 26
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
(Amounts in thousands)
<TABLE>
<CAPTION>
U.S. TREASURY MICHIGAN OHIO
PRIME SECURITIES MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND FUND
------------ ------------- ------------ -------------------------- ------------
YEAR YEAR YEAR SIX MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, DECEMBER 31, JUNE 30,
1999 1999 1999 1999 1998 1999
------------ ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income...................... $264,231 $284,801 $31,724 $2,917 $4,209 $3,741
Income from securities lending....... -- 5 -- -- -- --
-------- -------- ------- ------ ------ ------
Total Income......................... 264,231 284,806 31,724 2,917 4,209 3,741
-------- -------- ------- ------ ------ ------
EXPENSES:
Investment advisory fees............. 17,517 19,893 3,368 273 364 344
Administration fees.................. 8,119 9,229 1,561 144 182 186
12b-1 fees (Class A)................. 3,138 3,964 541 87 111 101
12b-1 fees (Class B)................. 70 8 -- -- -- --
12b-1 fees (Class C)................. -- 3 -- -- -- --
12b-1 fees (Service Class)........... --(a) --(a) --(a) -- -- --
Custodian and accounting fees........ 85 111 64 7 8 14
Legal and audit fees................. 40 113 43 12 30 8
Trustees' fees and expenses.......... 57 95 11 3 1 1
Transfer agent fees.................. 362 77 47 18 13 28
Registration and filing fees......... 381 556 168 68 11 39
Printing costs....................... 267 279 84 12 21 11
Other................................ 59 154 13 1 14 2
-------- -------- ------- ------ ------ ------
Total Expenses before waivers........ 30,095 34,482 5,900 625 755 734
Less waivers......................... (1,863) (1,705) (970) (79) (37) (152)
-------- -------- ------- ------ ------ ------
Net Expenses......................... 28,232 32,777 4,930 546 718 582
-------- -------- ------- ------ ------ ------
Net Investment Income................ 235,999 252,029 26,794 2,371 3,491 3,159
-------- -------- ------- ------ ------ ------
REALIZED GAINS (LOSSES) FROM
INVESTMENT TRANSACTIONS:
Net realized gains (losses) from
investment transactions............ 170 178 10 -- -- 7
-------- -------- ------- ------ ------ ------
Change in net assets resulting from
operations......................... $236,169 $252,207 $26,804 $2,371 $3,491 $3,166
======== ======== ======= ====== ====== ======
</TABLE>
- ------------
(a) Amount is less than $1,000.
See notes to financial statements.
24
<PAGE> 27
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
PRIME U.S. TREASURY SECURITIES MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------------- ------------------------- -------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................... $ 235,999 $ 171,341 $ 252,029 $ 165,715 $ 26,794 $ 18,959
Net realized gains (losses) from
investment transactions................ 170 89 178 40 10 11
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets resulting from
operations................................. 236,169 171,430 252,207 165,755 26,804 18,970
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income............... (179,573) (144,494) (185,187) (129,665) (21,187) (16,050)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............... (56,159) (26,806) (66,805) (36,044) (5,607) (2,909)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income............... (267) (41) (28) (6) -- --
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income............... -- -- (9) --(a) -- --
DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS:
From net investment income............... --(a) -- --(a) -- --(a) --
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets from shareholder
distributions.............................. (235,999) (171,341) (252,029) (165,715) (26,794) (18,959)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.............. 15,602,579 7,765,924 14,006,137 8,548,866 2,176,266 1,494,647
Proceeds from shares issued in Marquis
acquisition............................ -- -- 1,232,968 -- 109,768 --
Proceeds from shares issued in Pegasus
acquisition............................ 2,765,227 -- 1,053,742 -- 682,334 --
Dividends reinvested..................... 48,012 18,174 27,250 11,731 3,962 1,841
Cost of shares redeemed.................. (13,060,728) (7,457,318) (12,532,378) (7,447,086) (2,069,587) (1,409,168)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets from share
transactions............................... 5,355,090 326,780 3,787,719 1,113,511 902,743 87,320
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets......................... 5,355,260 326,869 3,787,897 1,113,511 902,753 87,331
NET ASSETS:
Beginning of period...................... 3,223,901 2,897,032 3,887,140 2,773,589 602,936 515,605
----------- ----------- ----------- ----------- ----------- -----------
End of period............................ $ 8,579,161 $ 3,223,901 $ 7,675,037 $ 3,887,140 $ 1,505,689 $ 602,936
=========== =========== =========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................................... 15,602,549 7,765,927 14,006,072 8,548,866 2,176,241 1,494,647
Issued in Marquis acquisition............ -- -- 1,233,021 -- 109,753 --
Issued in Pegasus acquisition............ 2,765,238 -- 1,053,758 -- 682,333 --
Reinvested............................... 48,012 18,174 27,250 11,731 3,962 1,841
Redeemed................................. (13,060,717) (7,457,319) (12,532,359) (7,447,086) (2,069,548) (1,409,168)
----------- ----------- ----------- ----------- ----------- -----------
Change in shares............................. 5,355,082 326,782 3,787,742 1,113,511 902,741 87,320
=========== =========== =========== =========== =========== ===========
</TABLE>
- ------------
(a) Amount is less than $1,000.
See notes to financial statements.
25
<PAGE> 28
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL OHIO MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
----------------------------------------- -------------------------
SIX
MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, JUNE 30,
1999 1998 1997 1999 1998
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................... $ 2,371 $ 3,491 $ 3,911 $ 3,159 $ 3,307
Net realized gains (losses) from
investment transactions................ -- -- -- 7 8
----------- ----------- ----------- ----------- -----------
Change in net assets resulting from
operations................................. 2,371 3,491 3,911 3,166 3,315
----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income............... (1,526) (2,295) (2,220) (2,108) (2,208)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............. (845) (1,196) (1,691) (1,051) (1,099)
----------- ----------- ----------- ----------- -----------
Change in net assets from shareholder
distributions.............................. (2,371) (3,491) (3,911) (3,159) (3,307)
----------- ----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.............. 331,019 453,540 385,607 375,334 312,708
Dividends reinvested..................... 542 869 1,688 1,058 1,062
Cost of shares redeemed.................. (346,364) (383,384) (404,815) (399,798) (284,375)
----------- ----------- ----------- ----------- -----------
Change in net assets from share
transactions............................... (14,803) 71,025 (17,520) (23,406) 29,395
----------- ----------- ----------- ----------- -----------
Change in Net Assets......................... (14,803) 71,025 (17,520) (23,399) 29,403
NET ASSETS:
Beginning of period...................... 175,115 104,090 121,610 116,324 86,921
----------- ----------- ----------- ----------- -----------
End of period............................ $ 160,312 $ 175,115 $ 104,090 $ 92,925 $ 116,324
=========== =========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................................... 331,019 453,540 385,607 375,335 312,708
Reinvested............................... 542 869 1,688 1,058 1,062
Redeemed................................. (346,364) (383,384) (404,815) (399,798) (284,375)
----------- ----------- ----------- ----------- -----------
Change in shares............................. (14,803) 71,025 (17,520) (23,405) 29,395
=========== =========== =========== =========== ===========
</TABLE>
- ------------
See notes to financial statements.
26
<PAGE> 29
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1999
1. ORGANIZATION:
The One Group Mutual Funds (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 Prime Money
Market Fund, the U.S. Treasury Securities Money Market Fund, the Municipal
Money Market Fund, the Michigan Municipal Money Market Fund (previously the
Pegasus Michigan 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 Michigan Municipal Money Market
Fund and Ohio Municipal Money Market Fund which are non-diversified.
The Trust entered into an Agreement and Plan of Reorganization (the "Marquis
Agreement") with the Marquis Family of Funds ("Marquis"), a Massachusetts
business trust. Pursuant to the Marquis Agreement, all of the assets and
liabilities of each Marquis Fund transferred to a Fund of the One Group on
August 10, 1998 in exchange for shares of the corresponding Fund of the One
Group.
The Trust entered into an Agreement and Plan of Reorganization (the "Pegasus
Agreement") with the Pegasus Funds ("Pegasus"), a Massachusetts business
trust. Pursuant to the Pegasus Agreement, all of the assets and liabilities
of each Pegasus Fund transferred to a Fund of the One Group on March 22, 1999
in exchange for shares of the corresponding Fund of the One Group. Subsequent
to the reorganization, the fiscal year end changed from December 31 to June
30 for the Michigan Municipal Money Market Fund. Therefore, the most recent
period presented for the statements of operations, statements of changes in
net assets and financial highlights for those Funds present the results for
the six months ended June 30, 1999. All financial information for the periods
prior to March 22, 1999 represent the predecessor fund.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Prime Money Market Fund Seeks current income with liquidity and
stability of principal.
U.S. Treasury Securities Money Market Fund Seeks current income with liquidity and
stability of principal.
Municipal Money Market Fund Seeks as high a level of current interest income
exempt from Federal income tax as is consistent
with capital preservation and stability of
principal.
Michigan Municipal Money Market Fund Seeks as high a level of current interest income
exempt from Federal income tax and Michigan
personal income tax as is consistent with
capital preservation and stability of
principal.
Ohio Municipal Money Market Fund Seeks as high a level of current interest income
exempt from Federal income tax and Ohio
personal income tax as is consistent with
capital preservation and stability of
principal.
</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
27
Continued
<PAGE> 30
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
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
Funds require that the securities purchased in a repurchase transaction
be transferred to the custodian in a manner sufficient to enable the
Funds 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.
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 straightline amortized cost
method.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33 1/3% 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, letters of credit or any combination of cash, such securities,
shares, or letters of credit as collateral equal at all times to at least
100% of the market value plus accrued interest on the securities lent.
The Funds continue to earn interest on securities lent while
simultaneously seeking to earn interest on the investment of cash
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, 1999, the Funds
had no securities on loan.
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
28
Continued
<PAGE> 31
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
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.
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
fifty-nine series and five classes of shares: Class I, Class A, Class B,
Class C and Service Class (Prior to November 1, 1998 Class I was known as
Fiduciary Class). Currently, the Trust consists of forty-nine active funds.
The Funds are each authorized to issue Class I, Class A, Class C and Service
shares. In addition, the U.S. Treasury Securities Money Market Fund and the
Prime Money Market Fund are authorized to issue Class B shares. As of June
30, 1999 there were no shareholders in Class C (except for the U.S. Treasury
Securities Money Market Fund). Certain redemptions of Class B and Class C
shares are subject to contingent deferred sales charge in accordance with the
Fund's prospectus. Shareholders are entitled to one vote for each full share
held and vote in the aggregate and not by class or series, except as
otherwise expressly required by law or when the Board of Trustees has
determined that the matter to be voted on affects only the interest of
shareholders of a particular class or series. The following is a summary of
transactions in fund shares for the periods noted:
29
Continued
<PAGE> 32
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
PRIME U.S. TREASURY SECURITIES MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------------- ------------------------- -------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS I SHARES:
Proceeds from shares issued.............. $10,475,138 $ 5,665,895 $ 9,521,758 $ 6,794,618 $ 1,253,959 $ 1,087,776
Proceeds from shares issued in Marquis
acquisition............................ -- -- 596,344 -- 45,820 --
Proceeds from shares issued in Pegasus
acquisition............................ 1,823,937 -- 810,294 -- 561,610 --
Dividends reinvested..................... 13,391 1,891 1,320 443 254 171
Cost of shares redeemed.................. (9,531,087) (5,614,930) (8,355,555) (6,012,860) (1,282,573) (1,057,248)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets from Class I Share
transactions........................... $ 2,781,379 $ 52,856 $ 2,574,161 $ 782,201 $ 579,070 $ 30,699
=========== =========== =========== =========== =========== ===========
CLASS A SHARES:
Proceeds from shares issued.............. $ 5,106,463 $ 2,096,713 $ 4,481,220 $ 1,753,840 $ 922,223 $ 406,871
Proceeds from shares issued in Marquis
acquisition............................ -- -- 636,624 -- 63,948 --
Proceeds from shares issued in Pegasus
acquisition............................ 940,816 -- 243,448 -- 120,724 --
Dividends reinvested..................... 34,396 16,253 25,900 11,283 3,708 1,670
Cost of shares redeemed.................. (3,515,979) (1,840,335) (4,175,153) (1,433,946) (786,966) (351,920)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets from Class A Share
transactions........................... $ 2,565,696 $ 272,631 $ 1,212,039 $ 331,177 $ 323,637 $ 56,621
=========== =========== =========== =========== =========== ===========
CLASS B SHARES:
Proceeds from shares issued.............. $ 20,848 $ 3,316 $ 2,299 $ 407
Proceeds from shares issued in Pegasus
acquisition............................ 474 -- -- --
Dividends reinvested..................... 225 30 23 5
Cost of shares redeemed.................. (13,605) (2,053) (1,491) (280)
----------- ----------- ----------- -----------
Change in net assets from Class B Share
transactions........................... $ 7,942 $ 1,293 $ 831 $ 132
=========== =========== =========== ===========
CLASS C SHARES:
Proceeds from shares issued.............. $ 855 $ 1
Dividends reinvested..................... 7 --
Cost of shares redeemed.................. (179) --
----------- -----------
Change in net assets from Class C Share
transactions........................... $ 683 $ 1
=========== ===========
SERVICE CLASS SHARES:
Proceeds from shares issued.............. $ 130 $ 5 $ 84
Dividends reinvested..................... --(a) --(a) --(a)
Cost of shares redeemed.................. (57) -- (48)
----------- ----------- -----------
Change in net assets from Service Class
Share transactions..................... $ 73 $ 5 $ 36
=========== =========== ===========
SHARE TRANSACTIONS:
CLASS I SHARES:
Issued................................... 10,475,147 5,665,897 9,521,761 6,794,618 1,253,959 1,087,776
Issued in Marquis acquisition............ -- -- 596,344 -- 45,820 --
Issued in Pegasus acquisition............ 1,823,940 -- 810,294 -- 561,569 --
Reinvested............................... 13,391 1,891 1,320 443 254 171
Redeemed................................. (9,531,115) (5,614,931) (8,355,553) (6,012,860) (1,282,573) (1,057,248)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class I Shares................. 2,781,363 52,857 2,574,166 782,201 579,029 30,699
=========== =========== =========== =========== =========== ===========
CLASS A SHARES:
Issued................................... 5,106,424 2,096,713 4,481,152 1,753,840 922,198 406,871
Issued in Marquis acquisition............ -- -- 636,677 -- 63,933 --
Issued in Pegasus acquisition............ 940,824 -- 243,464 -- 120,764 --
Reinvested............................... 34,396 16,253 25,900 11,283 3,708 1,670
Redeemed................................. (3,515,939) (1,840,335) (4,175,136) (1,433,946) (786,927) (351,920)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class A Shares................. 2,565,705 272,631 1,212,057 331,177 323,676 56,621
=========== =========== =========== =========== =========== ===========
CLASS B SHARES:
Issued................................... 20,848 3,317 2,299 407
Issued in Pegasus acquisition............ 474 -- -- --
Reinvested............................... 225 30 23 5
Redeemed................................. (13,606) (2,053) (1,491) (280)
----------- ----------- ----------- -----------
Change in Class B Shares................. 7,941 1,294 831 132
=========== =========== =========== ===========
CLASS C SHARES:
Issued................................... 855 1
Reinvested............................... 7 --
Redeemed................................. (179) --
----------- -----------
Change in Class C Shares................. 683 1
=========== ===========
SERVICE CLASS SHARES:
Issued................................... 130 5 84
Reinvested............................... --(a) --(a) --(a)
Redeemed................................. (57) -- (48)
----------- ----------- -----------
Change in Service Class Shares........... 73 5 36
=========== =========== ===========
</TABLE>
- ------------
(a) Amount is less than 1,000.
30
Continued
<PAGE> 33
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL OHIO MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
----------------------------------------- -------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, JUNE 30,
1999 1998 1997 1999 1998
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS I SHARES:
Proceeds from shares issued..................... $ 152,638 $ 299,355 $ 233,991 $ 208,865 $ 199,296
Dividends reinvested............................ 50 37 83 38 55
Cost of shares redeemed......................... (172,310) (263,447) (208,707) (230,386) (178,572)
----------- ----------- ----------- ----------- -----------
Change in net assets from Class I Share
transactions.................................. $ (19,622) $ 35,945 $ 25,367 $ (21,483) $ 20,779
=========== =========== =========== =========== ===========
CLASS A SHARES:
Proceeds from shares issued..................... $ 178,381 $ 154,185 $ 151,616 $ 166,469 $ 113,412
Dividends reinvested............................ 492 832 1,605 1,020 1,007
Cost of shares redeemed......................... (174,054) (119,937) (196,108) (169,412) (105,803)
----------- ----------- ----------- ----------- -----------
Change in net assets from Class A Share
transactions.................................. $ 4,819 $ 35,080 $ (42,887) $ (1,923) $ 8,616
=========== =========== =========== =========== ===========
SHARE TRANSACTIONS:
CLASS I SHARES:
Issued.......................................... 152,638 299,355 233,991 208,865 199,296
Reinvested...................................... 50 37 83 38 55
Redeemed........................................ (172,310) (263,447) (208,707) (230,386) (178,572)
----------- ----------- ----------- ----------- -----------
Change in Class I Shares........................ (19,622) 35,945 25,367 (21,483) 20,779
=========== =========== =========== =========== ===========
CLASS A SHARES:
Issued.......................................... 178,381 154,185 151,616 166,470 113,412
Reinvested...................................... 492 832 1,605 1,020 1,007
Redeemed........................................ (174,054) (119,937) (196,108) (169,412) (105,803)
----------- ----------- ----------- ----------- -----------
Change in Class A Shares........................ 4,819 35,080 (42,887) (1,922) 8,616
=========== =========== =========== =========== ===========
</TABLE>
31
Continued
<PAGE> 34
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
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 Prime
Money Market Fund, the U.S. Treasury Securities Money Market Fund, the
Municipal Money Market Fund and the Michigan Municipal Money Market Fund; and
0.30% of the Ohio Municipal Money Market Fund.
Prior to March 22, 1999 the Pegasus Funds and First Chicago NBD Investment
Management Company ("FCNIMCO") were parties to an investment advisory
agreement under which the Advisor was entitled to a fee, computed daily and
paid monthly, expressed as a percentage of the Michigan Municipal Money
Market Fund's average daily net assets, of 0.30% of the first $1.0 billion,
0.275% of the next $1.0 billion and 0.25% of the average daily net assets in
excess of $2.0 billion.
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, the
Government Money Market Fund and Institutional Prime 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.
Prior to March 22, 1999 FCNIMCO and BISYS Fund Services (the
"Co-Administrators") were parties to a Co-Administration agreement under
which the Co-Administrators were entitled to a fee, computed daily and paid
monthly, at an annual rate of 0.15% of the average net assets of the Michigan
Municipal Money Market Fund.
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. Class I 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.
32
Continued
<PAGE> 35
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
The Advisor, Administrator and Distributor voluntarily agreed to waive a
portion of their fees. For the year ended June 30, 1999, fees in the
following amounts were waived from the Funds (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT
ADVISORY 12B-1 FEES
FEES ADMINISTRATION WAIVED
WAIVED FEES WAIVED SERVICE CLASS
---------- -------------- -------------
<S> <C> <C> <C>
Prime Money Market Fund.................................. $1,501 $ 362 --(a)
U.S. Treasury Securities Money Market Fund............... 1,705 -- --(a)
Municipal Money Market Fund.............................. 828 142 --(a)
Michigan Municipal Money Market Fund*.................... 74 5 --
Ohio Municipal Money Market Fund......................... 69 83 --
</TABLE>
- ------------
(a) Amount is less than $1,000
* For the six months ended June 30, 1999
5. CONCENTRATION OF CREDIT RISK:
The Michigan and Ohio Municipal Money Market Funds, respectively, invest
primarily in debt obligations issued by the States of Michigan and Ohio and
their political subdivisions, agencies and public authorities to obtain funds
for various public purposes. The Funds are more susceptible to economic and
political factors adversely affecting issuers of Michigan's and Ohio's
specific municipal securities than are municipal money market funds that are
not concentrated in these issuers to the same extent.
6. MARQUIS REORGANIZATION:
The Trust entered an agreement and plan of reorganization and liquidation
("the Marquis Reorganization") with the Marquis Family of Funds (the "Marquis
Funds") pursuant to which all of the assets and liabilities of each Marquis
Fund transferred to a fund of the One Group in exchange for shares of the
corresponding fund of the One Group. The Marquis Reorganization, which
qualified as a tax-free exchange for Federal income tax purposes, was
completed on August 10, 1998, following approval by shareholders of the
Marquis Funds at a special Shareholder Meeting. The following is a summary of
shares outstanding and net assets, immediately before and after the Marquis
Reorganization (amounts in thousands).
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
----------------------------------------- -------------------
MARQUIS TREASURY U.S. TREASURY U.S. TREASURY
SECURITIES MONEY SECURITIES MONEY SECURITIES MONEY
MARKET FUND MARKET FUND MARKET FUND
------------------- ------------------- -------------------
<S> <C> <C> <C>
Shares............................................... 1,233,021 4,529,296 5,762,317
Net assets........................................... $1,232,968 $4,529,532 $5,762,500
</TABLE>
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
----------------------------------------- -------------------
MARQUIS TAX MUNICIPAL MUNICIPAL
EXEMPT MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND
------------------- ------------------- -------------------
<S> <C> <C> <C>
Shares............................................... 109,753 839,967 949,720
Net assets........................................... $ 109,768 $ 839,836 $ 949,604
</TABLE>
33
Continued
<PAGE> 36
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
7. PEGASUS REORGANIZATION:
The Trust entered an agreement and plan of reorganization and liquidation
("the Pegasus Reorganization") with the Pegasus Funds pursuant to which all
of the assets and liabilities of each Pegasus Fund transferred to a fund of
the One Group in exchange for shares of the corresponding Fund of the One
Group. The Pegasus Reorganization, which qualified as a tax-free exchange for
Federal income tax purposes, was completed on March 22, 1999, following
approval by shareholders of the Pegasus Funds at a special Shareholder
Meeting. The following is a summary of shares outstanding and net assets
immediately before and after the Pegasus Reorganization (amounts in
thousands).
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
---------------------------- --------------
PEGASUS PRIME PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ --------------
<S> <C> <C> <C>
Shares............................................... 2,765,238 5,229,986 7,995,224
Net assets........................................... $2,765,227 $5,230,175 $7,995,402
</TABLE>
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
----------------------------- --------------
PEGASUS U.S. TREASURY U.S. TREASURY
TREASURY SECURITIES SECURITIES
MONEY MARKET MONEY MONEY
FUND MARKET FUND MARKET FUND
------------ ------------- --------------
<S> <C> <C> <C>
Shares............................................... 1,053,758 5,910,559 6,964,317
Net assets........................................... $1,053,742 $5,911,020 $6,964,762
</TABLE>
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
---------------------------- --------------
PEGASUS
MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MONEY
FUND MARKET FUND MARKET FUND
------------ ------------ --------------
<S> <C> <C> <C>
Shares............................................... 682,333 890,765 1,573,098
Net assets........................................... $ 682,334 $ 890,687 $1,573,021
</TABLE>
<TABLE>
<CAPTION>
BEFORE AFTER
REORGANIZATION REORGANIZATION
-------------- --------------
PEGASUS
MICHIGAN MICHIGAN MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND
-------------- ------------ --------------
<S> <C> <C> <C>
Shares............................................... 207,223 207,223
Net assets........................................... $ 207,222 $ 207,222
</TABLE>
34
Continued
<PAGE> 37
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
8. SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED):
A Special Meeting of Shareholders of the One Group Mutual Funds was held on
May 17, 1999. At the meeting, shareholders voted on the approval of the
following proposals:
1. To elect the Board of Trustees of the One Group Mutual Funds.
<TABLE>
<CAPTION>
BROKER
NON-
FUND NAME FOR AGAINST ABSTAIN VOTE
--------- ------------- ------- ----------- ------
<S> <C> <C> <C> <C>
Prime Money Market Fund........................... 2,941,439,942 -- 119,299,937 --
U.S. Treasury Securities Money Market Fund........ 3,058,779,674 -- 6,164,903 --
Municipal Money Market Fund....................... 628,360,502 -- 301,229 --
Ohio Municipal Money Market Fund.................. 89,541,397 -- 2,461,215 --
</TABLE>
2. To ratify the selection of independent accountants.
<TABLE>
<CAPTION>
BROKER
NON-
FUND NAME FOR AGAINST ABSTAIN VOTE
--------- ------------- ----------- ----------- ------
<S> <C> <C> <C> <C>
Prime Money Market Fund....................... 2,926,911,529 120,431,070 13,397,279 --
U.S. Treasury Securities Money Market Fund.... 3,028,582,097 5,900,786 30,461,692 --
Municipal Money Market Fund................... 628,438,984 264 222,483 --
Ohio Municipal Money Market Fund.............. 91,320,594 381,050 300,967 --
</TABLE>
3. To approve a change to a fundamental investment restriction by eliminating
language which prohibits the One Group Mutual Funds from participating on
a joint or a joint and several basis in any trading account in securities.
<TABLE>
<CAPTION>
BROKER
FUND NAME FOR AGAINST ABSTAIN NON-VOTE
--------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Prime Money Market Fund.................. 2,656,716,839 51,244,816 14,923,221 337,855,003
U.S. Treasury Securities Money Market
Fund................................... 2,566,639,590 19,004,804 12,778,854 466,521,329
Municipal Money Market Fund.............. 536,459,748 1,431,286 605,020 90,165,677
Ohio Municipal Money Market Fund......... 70,367,992 514,271 238,084 20,882,265
</TABLE>
4. To eliminate a fundamental investment restriction which prohibits the One
Group Prime Money Market Fund from investing in state, municipal, or
private activity bonds.
<TABLE>
<CAPTION>
BROKER
FUND NAME FOR AGAINST ABSTAIN NON-VOTE
--------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Prime Money Market Fund.................. 2,623,216,954 68,181,491 31,486,430 337,855,004
</TABLE>
5. To approve a change to a fundamental investment restriction which
prohibits the One Group Prime Money Market Funds from concentrating its
investments in a single industry.
<TABLE>
<CAPTION>
BROKER
FUND NAME FOR AGAINST ABSTAIN NON-VOTE
--------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Prime Money Market Fund.................. 2,539,421,814 167,877,671 15,585,391 337,855,003
</TABLE>
35
Continued
<PAGE> 38
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
9. FEDERAL TAX INFORMATION (UNAUDITED):
On June 30, 1999, the following Funds have capital loss carryforwards which
are available to offset future capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
FUND 2004 2005 TOTAL
---- ---- ---- -----
<S> <C> <C> <C>
Michigan Municipal Money Market Fund........................ $1 $-- $1
Ohio Municipal Money Market Fund............................ -- 2 2
</TABLE>
Distributions declared from tax-exempt income during the fiscal year ended
June 30, 1999 are as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Municipal Money Market Fund................................. $24,867
Michigan Municipal Money Market Fund*....................... 2,446
Ohio Municipal Money Market Fund............................ 3,249
</TABLE>
- ------------
* For the six months ended June 30, 1999.
36
Continued
<PAGE> 39
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
--------------------------------------------------------------
CLASS I SHARES
--------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<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............... 0.049 0.053 0.051 0.054 0.052
---------- ---------- ---------- ---------- ----------
Distributions:
Net investment income............... (0.049) (0.053) (0.051) (0.054) (0.052)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
Total Return.......................... 4.98% 5.39% 5.20% 5.49% 5.34%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)... $5,398,206 $2,616,698 $2,563,768 $2,186,562 $1,965,416
Ratio of expenses to average net
assets........................... 0.50% 0.51% 0.48% 0.44% 0.41%
Ratio of net investment income to
average net assets............... 4.79% 5.26% 5.08% 5.34% 5.27%
Ratio of expenses to average net
assets*.......................... 0.54% 0.58% 0.56% 0.55% 0.57%
Ratio of net investment income to
average net assets*.............. 4.75% 5.19% 5.00% 5.23% 5.12%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
37
<PAGE> 40
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
------------------------------------------------------
CLASS A SHARES
------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------
1999 1998 1997 1996 1995
---------- -------- -------- -------- --------
<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..................... 0.046 0.050 0.048 0.051 0.050
---------- -------- -------- -------- --------
Distributions:
Net investment income..................... (0.046) (0.050) (0.048) (0.051) (0.050)
---------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ======== ======== ======== ========
Total Return................................ 4.72% 5.13% 4.94% 5.22% 5.08%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......... $3,171,028 $605,291 $332,646 $315,374 $201,968
Ratio of expenses to average net assets... 0.75% 0.76% 0.73% 0.69% 0.67%
Ratio of net investment income to average
net assets............................. 4.47% 5.01% 4.83% 5.09% 5.02%
Ratio of expenses to average net
assets*................................ 0.79% 0.83% 0.91% 0.90% 0.92%
Ratio of net investment income to average
net assets*............................ 4.43% 4.94% 4.65% 4.88% 4.77%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
38
<PAGE> 41
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
------------------------------------------
CLASS B SHARES
------------------------------------------
NOVEMBER 21,
YEAR ENDED JUNE 30, 1996
--------------------------- TO JUNE 30,
1999 1998 1997(A)
------------ ------------ ------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...................................... $ 1.000 $ 1.000 $ 1.000
------- ------- -------
Investment Activities:
Net investment income.................................... 0.039 0.043 0.026
------- ------- -------
Distributions:
Net investment income.................................... (0.039) (0.043) (0.026)
------- ------- -------
NET ASSET VALUE,
END OF PERIOD............................................ $ 1.000 $ 1.000 $ 1.000
======= ======= =======
Total Return............................................... 3.94% 4.35% 2.63%(b)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)........................ $ 9,854 $ 1,912 $ 618
Ratio of expenses to average net assets.................. 1.50% 1.51% 1.51%(c)
Ratio of net investment income to average net assets..... 3.80% 4.25% 4.16%(c)
Ratio of expenses to average net assets*................. 1.54% 1.57% 1.59%(c)
Ratio of net investment income to average net assets*.... 3.76% 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.
39
<PAGE> 42
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
-----------------------
SERVICE CLASS SHARES
-----------------------
APRIL 16,
1999 TO
JUNE 30,
1999(A)
-----------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 1.000
-------
Investment Activities:
Net investment income..................................... 0.008
-------
Distributions:
Net investment income..................................... (0.008)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 1.000
=======
Total Return................................................ 0.84%(b)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $ 73
Ratio of expenses to average net assets................... 1.05%(c)
Ratio of net investment income to average net assets...... 4.02%(c)
Ratio of expenses to average net assets*.................. 1.28%(c)
Ratio of net investment income to average net assets*..... 3.79%(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.
40
<PAGE> 43
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
--------------------------------------------------------------
CLASS I SHARES
--------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<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............... 0.045 0.051 0.050 0.052 0.050
---------- ---------- ---------- ---------- ----------
Distributions:
Net investment income............... (0.045) (0.051) (0.050)(a) (0.052) (0.050)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
Total Return.......................... 4.63% 5.19% 5.07% 5.34% 5.07%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)... $5,599,894 $3,025,608 $2,243,376 $1,844,590 $1,178,091
Ratio of expenses to average net
assets........................... 0.51% 0.52% 0.46% 0.42% 0.41%
Ratio of net investment income to
average net assets............... 4.52% 5.07% 4.95% 5.17% 4.96%
Ratio of expenses to average net
assets*.......................... 0.54% 0.60% 0.57% 0.56% 0.59%
Ratio of net investment income to
average net assets*.............. 4.49% 4.99% 4.84% 5.03% 4.78%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Includes $.000002 short term capital gain.
See notes to financial statements.
41
<PAGE> 44
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES MONEY MARKET FUND
--------------------------------------------------------------
CLASS A SHARES
--------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- -------- ---------- ----------
<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............... 0.043 0.048 0.047 0.050 0.047
---------- ---------- -------- ---------- ----------
Distributions:
Net investment income............... (0.043) (0.048) (0.047)(a) (0.050) (0.047)
---------- ---------- -------- ---------- ----------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ======== ========== ==========
Total Return.......................... 4.37% 4.92% 4.81% 5.08% 4.81%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)... $2,073,442 $ 861,350 $530,164 $ 110,864 $ 98,723
Ratio of expenses to average net
assets........................... 0.76% 0.77% 0.72% 0.67% 0.66%
Ratio of net investment income to
average net assets............... 4.21% 4.82% 4.71% 4.92% 4.71%
Ratio of expenses to average net
assets*.......................... 0.79% 0.86% 0.93% 0.91% 0.94%
Ratio of net investment income to
average net assets*.............. 4.18% 4.73% 4.50% 4.68% 4.43%
</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.
42
<PAGE> 45
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES
MONEY MARKET FUND
--------------------------------------
CLASS B SHARES
--------------------------------------
NOVEMBER 21,
YEAR ENDED JUNE 30, 1996 TO
-------------------- JUNE 30,
1999 1998 1997(A)
------- ------- ------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $1.000 $1.000 $1.000
------ ------ ------
Investment Activities:
Net investment income..................................... 0.035 0.041 0.024
------ ------ ------
Distributions:
Net investment income..................................... (0.035) (0.041) (0.024)(b)
------ ------ ------
NET ASSET VALUE,
END OF PERIOD............................................. $1.000 $1.000 $1.000
====== ====== ======
Total Return................................................ 3.60% 4.14% 2.44%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $1,012 $ 181 $ 49
Ratio of expenses to average net assets................... 1.51% 1.52% 1.48%(d)
Ratio of net investment income to average net assets...... 3.43% 4.06% 3.97%(d)
Ratio of expenses to average net assets*.................. 1.54% 1.60% 1.59%(d)
Ratio of net investment income to average net assets*..... 3.40% 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.
43
<PAGE> 46
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES
MONEY MARKET FUND
------------------------
CLASS C SHARES
------------------------
YEAR FEBRUARY 18,
ENDED 1998 TO
JUNE 30, JUNE 30,
1999 1998(A)
-------- ------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $1.000 $1.000
------ ------
Investment Activities:
Net investment income..................................... 0.035 0.015
------ ------
Distributions:
Net investment income..................................... (0.035) (0.015)
------ ------
NET ASSET VALUE,
END OF PERIOD............................................. $1.000 $1.000
====== ======
Total Return................................................ 3.59% 1.47%(b)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $ 684 $ 1
Ratio of expenses to average net assets................... 1.51% 1.57%(c)
Ratio of net investment income to average net assets...... 3.35% 4.01%(c)
Ratio of expenses to average net assets*.................. 1.54% 1.57%(c)
Ratio of net investment income to average net assets*..... 3.32% 4.01%(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.
44
<PAGE> 47
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES
MONEY MARKET FUND
------------------------
SERVICE CLASS SHARES
------------------------
APRIL 16,
1999 TO
JUNE 30,
1999(A)
------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 1.000
-------
Investment Activities:
Net investment income..................................... 0.008
-------
Distributions:
Net investment income..................................... (0.008)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 1.000
=======
Total Return................................................ 0.77%(b)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $ 5
Ratio of expenses to average net assets................... 1.06%(c)
Ratio of net investment income to average net assets...... 3.71%(c)
Ratio of expenses to average net assets*.................. 1.27%(c)
Ratio of net investment income to average net assets*..... 3.50%(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.
45
<PAGE> 48
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
--------------------------------------------------------------
CLASS I SHARES
--------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<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............... 0.028 0.032 0.031 0.033 0.032
---------- ---------- ---------- ---------- ----------
Distributions:
Net investment income............... (0.028) (0.032) (0.031) (0.033) (0.032)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
Total Return.......................... 2.88% 3.27% 3.19% 3.34% 3.28%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)... $1,077,205 $ 498,127 $ 467,420 $ 459,807 $ 437,743
Ratio of expenses to average net
assets........................... 0.46% 0.45% 0.43% 0.41% 0.41%
Ratio of net investment income to
average net assets............... 2.84% 3.22% 3.16% 3.29% 3.26%
Ratio of expenses to average net
assets*.......................... 0.56% 0.56% 0.55% 0.59% 0.59%
Ratio of net investment income to
average net assets*.............. 2.74% 3.11% 3.04% 3.11% 3.08%
</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.
46
<PAGE> 49
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
--------------------------------------------------------------
CLASS A SHARES
--------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<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............... 0.026 0.030 0.029 0.030 0.030
---------- ---------- ---------- ---------- ----------
Distributions
Net investment income............... (0.026) (0.030) (0.029) (0.030) (0.030)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
Total Return.......................... 2.63% 3.01% 2.97% 3.08% 3.02%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)... $ 428,448 $ 104,809 $ 48,185 $ 50,720 $ 56,518
Ratio of expenses to average net
assets........................... 0.70% 0.70% 0.68% 0.66% 0.66%
Ratio of net investment income to
average net assets............... 2.59% 2.97% 2.91% 3.04% 3.01%
Ratio of expenses to average net
assets*.......................... 0.80% 0.81% 0.90% 0.94% 0.94%
Ratio of net investment income to
average net assets*.............. 2.49% 2.86% 2.69% 2.76% 2.73%
</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.
47
<PAGE> 50
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MARKET FUND
---------------
SERVICE CLASS
SHARES
---------------
APRIL 16,
1999 TO
JUNE 30,
1999(A)
---------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................................... $ 1.000
-------
Investment Activities:
Net investment income..................................... 0.005
-------
Distributions:
Net investment income..................................... (0.005)
-------
NET ASSET VALUE,
END OF PERIOD............................................. $ 1.000
=======
Total Return................................................ 0.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $ 36
Ratio of expenses to average net assets................... 1.00%(c)
Ratio of net investment income to average net assets...... 2.45%(c)
Ratio of expenses to average net assets*.................. 1.29%(c)
Ratio of net investment income to average net assets*..... 2.16%(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.
48
<PAGE> 51
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL MONEY MARKET FUND
-------------------------------------------------
CLASS I SHARES
-------------------------------------------------
SIX MONTHS YEAR ENDED MARCH 30,
ENDED DECEMBER 31, 1996 TO
JUNE 30, ------------------- DECEMBER 31,
1999 1998 1997 1996(A)
---------- -------- -------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
Investment Activities:
Net investment income........................... 0.013 0.030 0.032 0.023
-------- -------- -------- --------
Distributions:
Net investment income........................... (0.013) (0.030) (0.032) (0.023)
-------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD................................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ========
Total Return...................................... 1.34%(b) 3.02% 3.26% 3.03%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)............... $ 91,211 $110,833 $ 74,888 $ 49,521
Ratio of expenses to average net assets......... 0.49%(c) 0.50% 0.50% 0.59%(c)
Ratio of net investment income to average net
assets....................................... 2.65%(c) 2.97% 3.20% 3.02%(c)
Ratio of expenses to average net assets*........ 0.57%(c) 0.53% 0.54% 0.62%(c)
Ratio of net investment income to average net
assets*...................................... 2.57%(c) 2.94% 3.16% 2.99%(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.
49
<PAGE> 52
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL MONEY MARKET FUND
---------------------------------------------------------------------
CLASS A SHARES
---------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED JUNE ----------------------------------------------------
30, 1999 1998 1997 1996 1995 1994
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ -------- -------- -------- -------- --------
Investment Activities:
Net investment income....... 0.012 0.027 0.030 0.029 0.033 0.024
------------ -------- -------- -------- -------- --------
Distributions:
Net investment income....... (0.012) (0.027) (0.030) (0.029) (0.033) (0.024)
------------ -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
============ ======== ======== ======== ======== ========
Total Return.................. 1.21%(a) 2.76% 3.00% 2.93% 3.32% 2.38%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period
(000).................... $ 69,101 $ 64,283 $ 29,202 $ 72,089 $122,057 $ 78,640
Ratio of expenses to average
net assets............... 0.75%(b) 0.75% 0.75% 0.74% 0.69% 0.67%
Ratio of net investment
income to average net
assets................... 2.42%(b) 2.72% 2.95% 2.87% 3.30% 2.35%
Ratio of expenses to average
net assets*.............. 0.84%(b) 0.78% 0.79% 0.77% 0.76% 0.75%
Ratio of net investment
income to average net
assets*.................. 2.33%(b) 2.69% 2.91% 2.84% 3.23% 2.27%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
50
<PAGE> 53
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
-----------------------------------------------------------------
CLASS I SHARES
-----------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ----------
<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................ 0.028 0.033 0.032 0.033 0.032
---------- ---------- ---------- ---------- ----------
Distributions:
Net investment income................ (0.028) (0.033) (0.032) (0.032) (0.032)
In excess of net investment income... -- -- -- (0.001) --
---------- ---------- ---------- ---------- ----------
Total Distributions.................... (0.028) (0.033) (0.032) (0.033) (0.032)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD,........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
Total Return........................... 2.88% 3.31% 3.22% 3.34% 3.20%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000).... $ 55,745 $ 77,224 $ 56,442 $ 55,915 $ 51,806
Ratio of expenses to average net
assets............................ 0.42% 0.40% 0.40% 0.41% 0.41%
Ratio of net investment income to
average net assets................ 2.85% 3.27% 3.17% 3.19% 3.13%
Ratio of expenses to average net
assets*........................... 0.55% 0.53% 0.53% 0.71% 0.60%
Ratio of net investment income to
average net assets*............... 2.72% 3.14% 3.04% 2.89% 2.94%
</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.
51
<PAGE> 54
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
----------------------------------------------------
CLASS A SHARES
----------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<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....................... 0.026 0.030 0.029 0.030 0.029
-------- -------- -------- -------- --------
Distributions:
Net investment income....................... (0.026) (0.030) (0.029) (0.029) (0.029)
In excess of net investment income.......... -- -- -- (0.001) --
-------- -------- -------- -------- --------
Total Distributions...................... (0.026) (0.030) (0.029) (0.030) (0.029)
NET ASSET VALUE, END OF PERIOD................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Return.................................. 2.62% 3.06% 2.96% 3.08% 2.98%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)........... $ 37,180 39,100 $ 30,479 $ 41,132 $ 35,790
Ratio of expenses to average net assets..... 0.67% 0.65% 0.65% 0.66% 0.63%
Ratio of net investment income to average
net assets............................... 2.60% 2.98% 2.90% 2.94% 2.91%
Ratio of expenses to average net assets*.... 0.80% 0.78% 0.88% 1.06% 0.95%
Ratio of net investment income to average
net assets*.............................. 2.47% 2.85% 2.67% 2.54% 2.58%
</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.
52
<PAGE> 55
- --------------------------------------------------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
ONE GROUP MUTUAL FUNDS JUNE 30, 1999
To the Shareholders and Board of Trustees of
One Group Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the 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 Prime Money Market Fund, the
U.S. Treasury Securities Money Market Fund, the Municipal Money Market Fund, the
Michigan Municipal Money Market Fund (formerly the Pegasus Michigan Municipal
Money Market Fund) and the Ohio Municipal Money Market (five series of One Group
Mutual Funds, hereafter referred to as the "Funds") at June 30, 1999, and the
results of each of their operations, the changes in each of their net assets and
the financial highlights for each of the periods presented (other than the
statement of operations, statements of changes in net assets and financial
highlights that have been audited by other independent accountants), in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these 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, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above. The financial statements of the Michigan Municipal
Money Market Fund for all periods ended on or before December 31, 1998 were
audited by other independent accountants whose report dated February 12, 1999,
expressed an unqualified opinion on those statements and financial highlights.
PricewaterhouseCoopers LLP
Columbus, Ohio
August 20, 1999
53
<PAGE> 56
Important Customer Information.
Please Read:
Shares of One Group:
- - are not deposits or obligations of, or guaranteed by, BANK 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 BANK ONE CORPORATION, serves as an investment advisor
to One Group, for which it receives advisory fees. One Group is distributed by
The One Group Services Company, 3435 Stelzer Road, Columbus, Ohio 43219, which
is not affiliated with BANK 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 One Group Funds, including management
fees and expenses, you may obtain a prospectus from The One Group Services
Company. Read the prospectus carefully before investing.
BANC ONE
INVESTMENT
ADVISORS
CORPORATION
[BANK ONE LOGO]
TOG-F-034-AN (8/99)
