<PAGE> 1
THE ONE (R)
INVESTOR
PROGRAM
SEMI-ANNUAL REPORT
For the six months ended December 31, 1998
THE ONE GROUP INVESTOR GROWTH FUND
THE ONE GROUP INVESTOR GROWTH & INCOME FUND
THE ONE GROUP INVESTOR BALANCED FUND
THE ONE GROUP INVESTOR CONSERVATIVE GROWTH FUND
[LOGO]
THE ONE GROUP(R)
----------------
FAMILY OF MUTUAL FUNDS
<PAGE> 2
IMPORTANT CUSTOMER INFORMATION. INVESTMENT PRODUCTS:
o are not deposits or obligations of, or guaranteed by,
BANK ONE CORPORATION or any of its affiliates,
o are not insured by the FDIC, and [FDIC LOGO]
o are subject to investment risks, including possible
loss of the principal amount invested.
<PAGE> 3
- --------------------------------------------------------------------------------
Table of Contents
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1998
Portfolio Performance Review............................................... 2
Schedules of Portfolio Investments.......................................... 4
Statements of Assets and Liabilities........................................ 8
Statements of Operations.................................................... 9
Statements of Changes in Net Assets........................................ 10
Notes to Financial Statements.............................................. 12
Financial Highlights....................................................... 18
1
<PAGE> 4
Portfolio Performance Review
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1998
ECONOMY CONTINUES TO GROW
The economy continued to grow at a solid pace during the second half of 1998,
primarily due to robust consumer spending and the Federal Reserve's aggressive
interest rate cuts. Third-quarter real GDP (Gross Domestic Product) growth
reached 3.7%, and, while final numbers were not released as of this writing, it
appears that fourth-quarter growth was approximately 4.0%. For the entire year,
we expect GDP growth was 3.8%.
Employment growth also remained strong in the second half of the year, as
non-farm payrolls grew by 1.4 million. Furthermore, employment growth actually
accelerated in the final three months of the year. The unemployment rate ended
the year at 4.3%, the lowest in more than 28 years.
INFLATION BARELY A FACTOR
Inflation, as measured by the Consumer Price Index, continued inching along at a
favorable pace, increasing by only 1.8% (annualized) during the final six months
of 1998. For all of 1998, inflation increased 1.6%.
Low inflation paved the way for lower interest rates, which were instrumental in
the financial markets' strong performance in the final few months of the year.
FED TAKES ACTION
A key event of 1998's second half was the emerging markets crisis, which was
sparked by the Russian default and currency devaluation on August 18. This
crisis led to a dramatic risk aversion in the financial markets, as credit
spreads widened to recessionary levels.
These events eventually resulted in three short-term rate cuts by the Federal
Reserve--one quarter-point cut in September, one in October and one in November.
The federal funds rate ended the year at 4.75%, down from 5.50% in mid-1998.
Long-term rates also came down, with the 30-year U.S. Treasury bond yielding
5.09% at year-end, compared to 5.63% on June 30 and 5.92% on December 31, 1997.
The equity and fixed income markets responded enthusiastically to the Fed's
accommodative monetary policy stance. On the equity side, the S&P 500 Index
posted strong gains during the last four months of the year. For the bond
market, the Fed's rate cuts helped restore some "normalcy" and investors showed
renewed confidence in non-Treasury sectors.
TRADE PROBLEMS MEAN SLOWER GROWTH IN STORE
We believe economic growth should slow down in 1999, as the trade deficit widens
and consumer spending relaxes from its current unsustainable level. Our forecast
is for 2.0% real GDP growth in 1999.
The contagion effects resulting from the current financial crisis in Brazil will
serve to widen the U.S. trade deficit, contributing to slower overall growth.
While Brazil accounts for only 2.3% of U.S. exports, the country serves as the
linchpin for all of Latin America, accounting for nearly 50% of the total Latin
American economy. Because the region as a whole accounts for nearly 20% of all
U.S. exports, our trade deficit should continue to widen as Latin America
weakens.
Furthermore, Japan probably will continue to experience negative growth in 1999,
putting additional pressure on U.S. exports. At the same time, imports should
increase dramatically, as troubled countries try to strengthen their economies
by selling their goods to other countries, such as the United States.
POSITIVE FORCES REMAIN IN PLACE
We think the Fed will lower short-term interest rates once or perhaps twice
before the end of 1999. With economic growth slowing and the Fed in an easing
mode, long-term rates should come down as well. Our forecast for the 30-year
Treasury bond yield is 4.75% by year-end.
2
<PAGE> 5
Portfolio Performance Review, continued
- --------------------------------------------------------------------------------
THE ONE GROUP FAMILY OF MUTUAL FUNDS DECEMBER 31, 1998
Falling interest rates along with continued low inflation should continue to
promote positive performance for the financial markets. We believe there is no
chance of recession developing in the near term. In fact, we are confident that
the current expansion will last well into the year 2000, which would make this
expansion the longest in U.S. history.
/s/ Anthony Chan
Anthony Chan, Ph.D.
Managing Director and Chief Economist
Banc One Investment Advisors Corporation
Past performance is no guarantee of future results.
3
<PAGE> 6
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Investor Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1998
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (101.4%):
2,729 The One Group Disciplined Value Fund
Class I............................. $ 39,321
735 The One Group Government Bond Fund
Class I............................. 7,517
1,899 The One Group Growth Opportunities
Fund Class I........................ 44,408
741 The One Group High Yield Bond Fund
Class I............................. 7,435
789 The One Group Income Bond Fund Class
I................................... 7,469
244 The One Group Intermediate Bond Fund
Class I............................. 2,482
1,331 The One Group International Equity
Index Fund Class I.................. 22,962
1,859 The One Group Large Company Growth
Fund Class I........................ 43,862
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
2,450 The One Group Large Company Value Fund
Class I............................. $ 39,119
470 The One Group Limited Volatility Bond
Fund Class I........................ 4,960
2,471 The One Group Prime Money Market Fund
Class I............................. 2,471
1,081 The One Group Small Capitalization
Fund Class I........................ 10,447
2,924 The One Group Value Growth Fund Class
I................................... 40,325
--------
Total Investment Companies 272,778
--------
Total (Cost $253,068) (a) $272,778
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $269,108.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $25,871
Unrealized depreciation...................... (6,161)
-------
Net unrealized appreciation.................. $19,710
=======
</TABLE>
See notes to financial statements.
4
<PAGE> 7
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Investor Growth & Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1998
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (100.9%):
2,270 The One Group Disciplined Value Fund
Class I............................. $ 32,717
2,487 The One Group Government Bond Fund
Class I............................. 25,422
1,614 The One Group Growth Opportunities
Fund Class I........................ 37,763
836 The One Group High Yield Bond Fund
Class I............................. 8,383
2,667 The One Group Income Bond Fund Class
I................................... 25,260
1,379 The One Group Intermediate Bond Fund
Class I............................. 14,023
1,167 The One Group International Equity
Index Fund Class I.................. 20,135
1,702 The One Group Large Company Growth
Fund Class I........................ 40,166
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
2,385 The One Group Large Company Value Fund
Class I............................. $ 38,092
1,059 The One Group Limited Volatility Bond
Fund Class I........................ 11,185
2,621 The One Group Prime Money Market Fund
Class I............................. 2,621
610 The One Group Small Capitalization
Fund Class I........................ 5,889
567 The One Group Ultra Short-Term Income
Fund Class I........................ 5,582
2,869 The One Group Value Growth Fund Class
I................................... 39,570
--------
Total Investment Companies 306,808
--------
Total (Cost $283,829) (a) $306,808
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $303,937.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $26,603
Unrealized depreciation...................... (3,624)
-------
Net unrealized appreciation.................. $22,979
=======
</TABLE>
See notes to financial statements.
5
<PAGE> 8
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Investor Balanced Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1998
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (100.5%):
1,287 The One Group Disciplined Value Fund
Class I............................. $ 18,539
4,036 The One Group Government Bond Fund
Class I............................. 41,250
903 The One Group Growth Opportunities
Fund Class I........................ 21,119
3,865 The One Group Income Bond Fund Class
I................................... 36,597
2,277 The One Group Intermediate Bond Fund
Class I............................. 23,160
751 The One Group International Equity
Index Fund Class I.................. 12,951
1,170 The One Group Large Company Growth
Fund Class I........................ 27,621
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
1,654 The One Group Large Company Value Fund
Class I............................. $ 26,418
1,461 The One Group Limited Volatility Bond
Fund Class I........................ 15,424
1,606 The One Group Prime Money Market Fund
Class I............................. 1,606
1,045 The One Group Ultra Short-Term Income
Fund Class I 10,284
2,180 The One Group Value Growth Fund Class
I................................... 30,064
--------
Total Investment Companies 265,033
--------
Total (Cost $246,917) (a) $265,033
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $263,692.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $19,683
Unrealized depreciation...................... (1,567)
-------
Net unrealized appreciation.................. $18,116
=======
</TABLE>
See notes to financial statements.
6
<PAGE> 9
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
Investor Conservative Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1998
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (99.5%):
186 The One Group Disciplined Value Fund
Class I............................. $ 2,687
3,073 The One Group Government Bond Fund
Class I............................. 31,405
131 The One Group Growth Opportunities
Fund Class I........................ 3,055
2,753 The One Group Income Bond Fund Class
I................................... 26,069
366 The One Group Income Equity Fund Class
I................................... 8,424
1,669 The One Group Intermediate Bond Fund
Class I............................. 16,977
229 The One Group International Equity
Index Fund Class I.................. 3,954
336 The One Group Large Company Growth
Fund Class I........................ 7,930
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- --------- -------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES, CONTINUED:
504 The One Group Large Company Value Fund
Class I............................. $ 8,049
867 The One Group Limited Volatility Bond
Fund Class I........................ 9,153
2,406 The One Group Prime Money Market Fund
Class I............................. 2,406
530 The One Group Ultra Short-Term Income
Fund Class I........................ 5,219
503 The One Group Value Growth Fund Class
I................................... 6,935
--------
Total Investment Companies 132,263
--------
Total (Cost $127,811) (a) $132,263
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $132,930.
(a) Represents cost for financial reporting purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation...................... $ 4,898
Unrealized depreciation...................... (446)
-------
Net unrealized appreciation.................. $ 4,452
=======
</TABLE>
See notes to financial statements.
7
<PAGE> 10
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1998
(Amounts in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
INVESTOR INVESTOR
INVESTOR GROWTH & INVESTOR CONSERVATIVE
GROWTH INCOME BALANCED GROWTH
FUND FUND FUND FUND
-------- --------- --------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $253,068; $283,829; $246,917;
and $127,811, respectively)............................... $272,778 $306,808 $265,033 $132,263
Cash........................................................ 493 625 515 630
Dividends receivable........................................ 757 988 945 539
Receivable for capital shares issued........................ 350 402 508 481
Prepaid expenses and other assets........................... 2 3 2 1
-------- -------- -------- --------
TOTAL ASSETS................................................ 274,380 308,826 267,003 133,914
-------- -------- -------- --------
LIABILITIES:
Dividends payable........................................... 4,917 4,377 2,929 841
Payable for capital shares redeemed......................... 190 295 180 44
Accrued expenses and other payables:
Investment advisory fees................................ 5 13 11 6
Administration fees..................................... -- 6 7 --
12b-1 fees.............................................. 106 127 118 68
Other................................................... 54 71 66 25
-------- -------- -------- --------
TOTAL LIABILITIES........................................... 5,272 4,889 3,311 984
-------- -------- -------- --------
NET ASSETS:
Capital..................................................... 245,533 278,182 243,753 127,973
Undistributed (distributions in excess of) net investment
income.................................................... 48 35 36 --
Accumulated undistributed net realized gains (losses) from
investment transactions................................... 3,817 2,741 1,787 505
Net unrealized appreciation (depreciation) from
investments............................................... 19,710 22,979 18,116 4,452
-------- -------- -------- --------
NET ASSETS.................................................. $269,108 $303,937 $263,692 $132,930
======== ======== ======== ========
NET ASSETS:
Class I................................................. $ 88,654 $104,705 $ 74,576 $ 33,911
Class A................................................. 65,312 57,486 56,855 19,616
Class B................................................. 102,927 131,837 122,230 74,679
Class C................................................. 12,215 9,909 10,031 4,724
-------- -------- -------- --------
Total....................................................... $269,108 $303,937 $263,692 $132,930
======== ======== ======== ========
OUTSTANDING UNITS OF BENEFICIAL INTEREST (SHARES):
Class I................................................. 6,653 8,289 6,259 3,035
Class A................................................. 4,927 4,507 4,770 1,759
Class B................................................. 7,681 10,378 10,261 6,694
Class C................................................. 921 786 845 424
-------- -------- -------- --------
Total....................................................... 20,182 23,960 22,135 11,912
======== ======== ======== ========
Net Asset Value:
Class I Offering and redemption price per share......... $ 13.33 $ 12.63 $ 11.91 $ 11.17
======== ======== ======== ========
Class A Redemption price per share...................... $ 13.26 $ 12.76 $ 11.92 $ 11.15
======== ======== ======== ========
Maximum sales charge............................... 4.50% 4.50% 4.50% 4.50%
======== ======== ======== ========
Maximum offering price per share
(100%/(100%-maximum sales charge) of net asset
value adjusted to nearest cent).................. $ 13.88 $ 13.36 $ 12.48 $ 11.68
======== ======== ======== ========
Class B Offering price per share (a).................... $ 13.40 $ 12.70 $ 11.91 $ 11.16
======== ======== ======== ========
Class C Offering price per share (a).................... $ 13.26 $ 12.60 $ 11.87 $ 11.14
======== ======== ======== ========
</TABLE>
- ------------
(a) Redemption price per Class B and Class C share varies based on length of
time shares are held.
See notes to financial statements.
8
<PAGE> 11
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1998
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR INVESTOR GROWTH INVESTOR CONSERVATIVE
GROWTH FUND & INCOME FUND BALANCED FUND GROWTH FUND
----------- --------------- ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Distribution income........................ $ 5,717 $ 6,509 $ 5,847 $2,730
------- ------- ------- ------
EXPENSES:
Investment advisory fees................... 59 65 57 27
Administration fees........................ 117 131 114 53
12b-1 fees (Class A)....................... 102 85 79 27
12b-1 fees (Class B)....................... 421 537 474 280
12b-1 fees (Class C)....................... 52 42 41 23
Custodian and accounting fees.............. 2 2 2 2
Legal and audit fees....................... 3 4 3 2
Trustees' fees and expenses................ 1 1 2 1
Transfer agent fees........................ 132 89 70 50
Registration and filing fees............... 54 53 44 41
Printing costs............................. 13 15 11 6
Other...................................... 2 2 1 1
------- ------- ------- ------
Total expenses before waivers.............. 958 1,026 898 513
Less waivers and reimbursements............ (176) (122) (97) (82)
------- ------- ------- ------
Net Expenses............................... 782 904 801 431
------- ------- ------- ------
Net Investment Income...................... 4,935 5,605 5,046 2,299
------- ------- ------- ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment
transactions............................. 13,721 10,925 6,493 1,565
Net change in unrealized appreciation
(depreciation) from investments.......... 1,568 5,109 3,603 1,557
------- ------- ------- ------
Net realized/unrealized gains (losses) from
investments.............................. 15,289 16,034 10,096 3,122
------- ------- ------- ------
Change in net assets resulting from
operations............................... $20,224 $21,639 $15,142 $5,421
======= ======= ======= ======
</TABLE>
See notes to financial statements.
9
<PAGE> 12
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
INVESTOR INVESTOR GROWTH
GROWTH FUND & INCOME FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1998 1998 1998 1998
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................. $ 4,935 $ 759 $ 5,605 $ 2,446
Net realized gains (losses) from investment
transactions................................... 13,721 7,240 10,925 6,961
Net change in unrealized appreciation
(depreciation) from investments................ 1,568 14,046 5,109 14,037
-------- -------- -------- --------
Change in net assets resulting from operations........ 20,224 22,045 21,639 23,444
-------- -------- -------- --------
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income........................ (2,517) (544) (2,942) (1,586)
From net realized gains from investment
transactions................................... (4,219) (1,180) (3,758) (1,513)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........................ (1,777) (172) (1,484) (357)
From net realized gains from investment
transactions................................... (3,068) (471) (1,911) (348)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income........................ (2,436) (38) (2,976) (472)
From net realized gains from investment
transactions................................... (4,568) (776) (4,315) (761)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income........................ (295) (5) (230) (31)
From net realized gains from investment
transactions................................... (564) (101) (335) (55)
-------- -------- -------- --------
Change in net assets from shareholder distributions... (19,444) (3,287) (17,951) (5,123)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....................... 64,970 165,696 83,948 177,644
Proceeds from shares issued in conversion......... -- 10,702 -- 12,936
Dividends reinvested.............................. 11,714 2,757 10,252 3,682
Cost of shares redeemed........................... (29,055) (20,622) (23,782) (39,570)
-------- -------- -------- --------
Change in net assets from share transactions.......... 47,629 158,533 70,418 154,692
-------- -------- -------- --------
Change in net assets.................................. 48,409 177,291 74,106 173,013
NET ASSETS:
Beginning of period............................... 220,699 43,408 229,831 56,818
-------- -------- -------- --------
End of period..................................... $269,108 $220,699 $303,937 $229,831
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued............................................ 5,076 13,101 6,864 14,884
Issued in conversion.............................. -- 922 -- 1,150
Reinvested........................................ 913 232 835 319
Redeemed.......................................... (2,283) (1,634) (1,958) (3,325)
-------- -------- -------- --------
Change in shares...................................... 3,706 12,621 5,741 13,028
======== ======== ======== ========
</TABLE>
See notes to financial statements.
10
<PAGE> 13
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
INVESTOR INVESTOR CONSERVATIVE
BALANCED FUND GROWTH FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1998 1998 1998 1998
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................. $ 5,046 $ 3,904 $ 2,299 $ 1,840
Net realized gains (losses) from investment
transactions................................... 6,493 5,351 1,565 808
Net change in unrealized appreciation
(depreciation) from investments................ 3,603 10,033 1,557 2,434
-------- -------- -------- --------
Change in net assets resulting from operations........ 15,142 19,288 5,421 5,082
-------- -------- -------- --------
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income........................ (2,198) (2,708) (771) (985)
From net realized gains from investment
transactions................................... (2,012) (1,584) (372) (205)
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........................ (1,404) (414) (390) (215)
From net realized gains from investment
transactions................................... (1,311) (185) (193) (29)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income........................ (2,602) (717) (1,228) (572)
From net realized gains from investment
transactions................................... (2,775) (441) (708) (121)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income........................ (219) (65) (90) (67)
From net realized gains from investment
transactions................................... (232) (37) (53) (17)
-------- -------- -------- --------
Change in net assets from shareholder distributions... (12,753) (6,151) (3,805) (2,211)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....................... 94,086 130,231 55,038 71,233
Proceeds from shares issued in conversion......... -- 6,532 -- 707
Dividends reinvested.............................. 7,717 3,506 2,382 1,170
Cost of shares redeemed........................... (43,778) (30,131) (12,273) (8,767)
-------- -------- -------- --------
Change in net assets from share transactions.......... 58,025 110,138 45,147 64,343
-------- -------- -------- --------
Change in net assets.................................. 60,414 123,275 46,763 67,214
NET ASSETS:
Beginning of period............................... 203,278 80,003 86,167 18,953
-------- -------- -------- --------
End of period..................................... $263,692 $203,278 $132,930 $ 86,167
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued............................................ 8,120 11,443 5,015 6,600
Issued in conversion.............................. -- 600 -- 67
Reinvested........................................ 664 315 216 109
Redeemed.......................................... (3,857) (2,677) (1,118) (811)
-------- -------- -------- --------
Change in shares...................................... 4,927 9,681 4,113 5,965
======== ======== ======== ========
</TABLE>
See notes to financial statements.
11
<PAGE> 14
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998
(Unaudited)
1. ORGANIZATION:
The One Group (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company
established as a Massachusetts business trust. The accompanying financial
statements and financial highlights are those of the Investor Growth Fund,
the Investor Growth & Income Fund, the Investor Balanced Fund and the
Investor Conservative Growth Fund (individually a "Fund", collectively the
"Funds") only.
The Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Investor Growth Fund Long-term capital appreciation by investing primarily in
a diversified group of The One Group mutual funds which
invest primarily in equity securities.
Investor Growth & Income Fund Long-term capital appreciation and growth of income by
investing primarily in a diversified group of The One
Group mutual funds which invest primarily in equity
securities.
Investor Balanced Fund High total return consistent with the preservation of
capital by investing primarily in a diversified group of
The One Group mutual funds which invest primarily in
equity and fixed income securities.
Investor Conservative Growth Fund Income and capital appreciation by investing primarily in
a diversified group of The One Group mutual funds which
invest primarily in equity and fixed income securities.
</TABLE>
On October 2, 1998, First Chicago NBD Corporation merged with and into BANC
ONE CORPORATION at which time it was renamed BANK ONE CORPORATION. The
Pegasus Funds are proprietary funds of the merged company. BANK ONE
CORPORATION has now begun the process of reorganizing the Pegasus Funds into
The One Group Family of Mutual Funds. On November 19, 1998 and January 12,
1999, respectively, the Boards of Trustees of the Trust and the Pegasus Funds
approved a proposed Agreement and Plan of Reorganization, which is subject to
Pegasus shareholder approval. Assuming approval by Pegasus shareholders, it
is anticipated the reorganization transaction will occur in March, 1999. The
reorganization is intended to be effected on a tax-free basis by exchanging
the net assets of the following Pegasus funds for shares of the corresponding
fund of The One Group:
<TABLE>
<CAPTION>
LIQUIDATING PEGASUS FUND ONE GROUP FUND
------------------------ --------------
<S> <C>
Managed Assets Growth Investor Growth
Managed Assets Balanced Investor Growth & Income
Managed Assets Conservative Investor Balanced
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Investments in The One Group mutual funds (the "Underlying Funds") are
valued at the closing net asset value per share of each Underlying Fund
on the day of valuation. Short-term investments maturing in 60 days or
less are valued at amortized cost, which approximates market value.
Continued
12
<PAGE> 15
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1998
(Unaudited)
SECURITY TRANSACTIONS AND RELATED INCOME
Purchases and sales of the Underlying Funds are accounted for on a trade
date basis. Net realized gains or losses on sales of the Underlying Funds
are determined on the specific identification cost method. Other income
and expenses are recognized on the accrual basis. Distributions from the
Underlying Funds and dividends to the Funds' shareholders are recorded on
the ex-dividend date.
EXPENSES
Expenses directly attributable to a Fund are charged directly to that
Fund, while the expenses which are attributable to more than one fund of
the Trust are allocated among the respective Funds. Each class of shares
bears its pro-rata portion of expenses attributable to its series, except
that each class separately bears expenses related specifically to that
class, such as distribution fees.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid monthly for
the Funds. Net realized capital gains, if any, are distributed at least
annually. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are
due to differences in separate class expenses.
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for expiring capital loss
carryforwards and deferrals of certain losses. Permanent book and tax
basis differences, which affect shareholder distributions, will be
reclassified to additional paid-in capital.
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each Fund intends to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and
from net realized capital gains sufficient to relieve it from all, or
substantially all, Federal income taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with no
par value, which may, without shareholder approval, be divided into an
unlimited number of series of such shares, and any series may be classified
or reclassified into one or more classes. The Trust is registered to offer
forty series and five classes of shares: 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 thirty-four active Funds. The Funds
are each authorized to issue Class I, Class A, Class B and Class C Shares.
Class A Shares are subject to initial sales charges, imposed at the time of
purchase, in accordance with the Funds' prospectus. Certain redemptions of
Class B and Class C Shares are subject to contingent deferred sales charges
in accordance with the Funds' prospectus. Shareholders are entitled to one
vote for each full share held and will vote in the aggregate and not by class
or series, except as otherwise expressly required by law or when the Board of
Trustees has determined that the matter to be voted on affects only the
interest of shareholders of a particular class or series. The following is a
summary of transactions in Fund shares for the periods ended December 31,
1998 and June 30, 1998:
Continued
13
<PAGE> 16
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1998
(Amounts in thousands)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR GROWTH &
GROWTH FUND INCOME FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1998 1998 1998 1998
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS I SHARES:
Proceeds from shares issued............................... $11,100 $47,160 $14,552 $61,976
Proceeds from shares issued in conversion................. -- 10,702 -- 12,936
Dividends reinvested...................................... 2,273 1,220 1,768 1,780
Cost of shares redeemed................................... (10,804) (13,523) (10,332) (32,898)
------- ------- ------- -------
Change in net assets from Class I Share transactions...... $ 2,569 $45,559 $ 5,988 $43,794
======= ======= ======= =======
CLASS A SHARES:
Proceeds from shares issued............................... $16,670 $50,360 $20,039 $35,814
Dividends reinvested...................................... 3,643 621 2,607 653
Cost of shares redeemed................................... (9,959) (3,719) (5,820) (3,170)
------- ------- ------- -------
Change in net assets from Class A Share transactions...... $10,354 $47,262 $16,826 $33,297
======= ======= ======= =======
CLASS B SHARES:
Proceeds from shares issued............................... $33,781 $59,863 $46,160 $73,655
Dividends reinvested...................................... 5,165 810 5,474 1,171
Cost of shares redeemed................................... (7,585) (3,085) (7,317) (3,333)
------- ------- ------- -------
Change in net assets from Class B Share transactions...... $31,361 $57,588 $44,317 $71,493
======= ======= ======= =======
CLASS C SHARES:
Proceeds from shares issued............................... $ 3,419 $ 8,313 $ 3,197 $ 6,199
Dividends reinvested...................................... 633 106 403 78
Cost of shares redeemed................................... (707) (295) (313) (169)
------- ------- ------- -------
Change in net assets from Class C Share transactions...... $ 3,345 $ 8,124 $ 3,287 $ 6,108
======= ======= ======= =======
SHARE TRANSACTIONS:
CLASS I SHARES:
Issued.................................................... 867 3,722 1,189 5,278
Issued in conversion...................................... -- 922 -- 1,150
Reinvested................................................ 178 103 146 155
Redeemed.................................................. (843) (1,080) (848) (2,777)
------- ------- ------- -------
Change in Class I Shares.................................. 202 3,667 487 3,806
======= ======= ======= =======
CLASS A SHARES:
Issued.................................................... 1,300 3,973 1,629 2,960
Reinvested................................................ 286 52 211 56
Redeemed.................................................. (789) (291) (476) (260)
------- ------- ------- -------
Change in Class A Shares.................................. 797 3,734 1,364 2,756
======= ======= ======= =======
CLASS B SHARES:
Issued.................................................... 2,641 4,734 3,780 6,126
Reinvested................................................ 400 68 445 101
Redeemed.................................................. (597) (240) (608) (274)
------- ------- ------- -------
Change in Class B Shares.................................. 2,444 4,562 3,617 5,953
======= ======= ======= =======
CLASS C SHARES:
Issued.................................................... 268 672 266 520
Reinvested................................................ 49 9 33 7
Redeemed.................................................. (54) (23) (26) (14)
------- ------- ------- -------
Change in Class C Shares.................................. 263 658 273 513
======= ======= ======= =======
</TABLE>
Continued
14
<PAGE> 17
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1998
(Amounts in thousands)
<TABLE>
<CAPTION>
INVESTOR INVESTOR CONSERVATIVE
BALANCED FUND GROWTH FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1998 1998 1998 1998
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS I SHARES:
Proceeds from shares issued............................... $ 13,340 $29,880 $ 8,974 $18,972
Proceeds from shares issued in conversion................. -- 6,532 -- 707
Dividends reinvested...................................... 1,126 1,866 246 338
Cost of shares redeemed................................... (32,925) (25,609) (6,025) (6,167)
-------- ------- ------- -------
Change in net assets from Class I Share transactions...... $(18,459) $12,669 $ 3,195 $13,850
======== ======= ======= =======
CLASS A SHARES:
Proceeds from shares issued............................... $ 25,278 $30,496 $ 8,215 $11,834
Dividends reinvested...................................... 2,119 518 476 192
Cost of shares redeemed................................... (4,114) (1,837) (1,845) (1,084)
-------- ------- ------- -------
Change in net assets from Class A Share transactions...... $ 23,283 $29,177 $ 6,846 $10,942
======== ======= ======= =======
CLASS B SHARES:
Proceeds from shares issued............................... $ 52,080 $63,523 $36,375 $36,712
Dividends reinvested...................................... 4,122 1,034 1,540 571
Cost of shares redeemed................................... (6,255) (2,638) (3,706) (1,395)
-------- ------- ------- -------
Change in net assets from Class B Share transactions...... $ 49,947 $61,919 $34,209 $35,888
======== ======= ======= =======
CLASS C SHARES:
Proceeds from shares issued............................... $ 3,388 $ 6,332 $ 1,474 $ 3,715
Dividends reinvested...................................... 350 88 120 69
Cost of shares redeemed................................... (484) (47) (697) (121)
-------- ------- ------- -------
Change in net assets from Class C Share transactions...... $ 3,254 $ 6,373 $ 897 $ 3,663
======== ======= ======= =======
SHARE TRANSACTIONS:
CLASS I SHARES:
Issued.................................................... 1,148 2,648 816 1,763
Issued in conversion...................................... -- 600 -- 67
Reinvested................................................ 98 169 22 32
Redeemed.................................................. (2,912) (2,282) (548) (572)
-------- ------- ------- -------
Change in Class I Shares.................................. (1,666) 1,135 290 1,290
======== ======= ======= =======
CLASS A SHARES:
Issued.................................................... 2,189 2,665 748 1,092
Reinvested................................................ 182 46 43 18
Redeemed.................................................. (356) (160) (168) (100)
-------- ------- ------- -------
Change in Class A Shares.................................. 2,015 2,551 623 1,010
======== ======= ======= =======
CLASS B SHARES:
Issued.................................................... 4,491 5,569 3,317 3,397
Reinvested................................................ 354 92 140 53
Redeemed.................................................. (547) (231) (338) (128)
-------- ------- ------- -------
Change in Class B Shares.................................. 4,298 5,430 3,119 3,322
======== ======= ======= =======
CLASS C SHARES:
Issued.................................................... 292 561 134 348
Reinvested................................................ 30 8 11 6
Redeemed.................................................. (42) (4) (64) (11)
-------- ------- ------- -------
Change in Class C Shares.................................. 280 565 81 343
======== ======= ======= =======
</TABLE>
Continued
15
<PAGE> 18
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1998
(Unaudited)
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and Banc One Investment Advisors Corporation (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
0.05% of the average net assets of the Investor Growth Fund, the Investor
Growth & Income Fund, the Investor Balanced Fund and the Investor
Conservative Growth Fund, respectively.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administrative agreement under which the Administrator provides services for
a fee that is computed daily and paid monthly, at an annual rate of 0.10% on
the first $500 million of each Fund's average daily net assets, 0.075% of
each Fund's average daily net assets between $500 million and $1 billion, and
0.05% of each Fund's average daily net assets when Fund assets exceed $1
billion. The Advisor also serves as sub-Administrator to each Fund of the
Trust, pursuant to an agreement between the Administrator and the Advisor.
Pursuant to this agreement, the Advisor performs many of the Administrator's
duties, for which the Advisor receives a fee paid by the Administrator.
The Trust and The One Group Services Company (the "Distributor") are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. Class A, Class B and Class C Shares are subject to a
distribution and shareholder services plan (the "Plans") pursuant to Rule
12b-1 under the 1940 Act. As provided in the Plans, the Trust will pay the
Distributor a fee of 0.35% of the average daily net assets of Class A Shares
of each of the Funds and 1.00% of the average daily net assets of the Class B
and Class C Shares of each of the Funds. Currently, the Distributor has
voluntarily agreed to limit payments under the Plans to 0.25% of average
daily net assets of the Class A Shares of each Fund. Up to 0.25% of the fees
payable under the Plans may be used as compensation for shareholder services
by the Distributor and/or financial institutions and intermediaries. Fees
paid under the Plans may be applied by the Distributor toward (i)
compensation for its services in connection with distribution assistance or
provision of shareholder services; or (ii) payments to financial institutions
and intermediaries such as banks (including affiliates of the Advisor),
brokers, dealers and other institutions, including the Distributor's
affiliates and subsidiaries as compensation for services or reimbursement of
expenses incurred in connection with distribution assistance or provision of
shareholder services. Class I Shares of each Fund are offered without
distribution fees. For the period ended December 31, 1998, the Distributor
received $12,763,944 from commissions earned on sales of Class A Shares and
redemptions of Class B and Class C Shares, of which, the Distributor
re-allowed $12,724,551 to affiliated broker-dealers of the Funds.
Certain officers of the Trust are affiliated with the Administrator. Such
officers receive no compensation from the Funds for serving in their
respective roles.
The Advisor, the Administrator and the Distributor voluntarily agreed to
waive a portion of their fees. For the period ended December 31, 1998, fees
in the following amounts were waived (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT 12B-1 FEES
ADVISORY FEES ADMINISTRATION WAIVED
WAIVED FEES WAIVED CLASS A
------------- --------------- ----------
<S> <C> <C> <C>
Investor Growth Fund..................................... $30 $117 $29
Investor Growth & Income Fund............................ -- 98 24
Investor Balanced Fund................................... -- 74 23
Investor Conservative Growth Fund........................ 21 53 8
</TABLE>
Continued
16
<PAGE> 19
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1998
(Unaudited)
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the period
ended December 31, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -------
<S> <C> <C>
Investor Growth Fund.................................. $69,487 $16,416
Investor Growth & Income Fund......................... 90,286 30,916
Investor Balanced Fund................................ 75,895 13,487
Investor Conservative Growth Fund..................... 45,615 3,014
</TABLE>
6. CONVERSION OF COMMON TRUST FUNDS:
On December 19, 1997 the net assets of certain common trust funds managed by
the Advisor were exchanged for shares of the corresponding One Group Funds.
The transaction was accounted for by a method followed for tax purposes in a
tax-free business combination. The following is a summary of shares issued,
net assets converted, net asset value per share issued and unrealized
appreciation of assets acquired as of the conversion date (amounts in
thousands except per share amounts):
<TABLE>
<CAPTION>
NET ASSET
SHARES NET ASSETS VALUE PER UNREALIZED
ISSUED CONVERTED SHARE ISSUED APPRECIATION
------ ---------- ------------ ------------
<S> <C> <C> <C> <C>
Investor Growth Fund................................. 922 $10,702 $11.61 $--
Investor Growth & Income Fund........................ 1,150 12,936 11.25 --
Investor Balanced Fund............................... 600 6,532 10.89 --
Investor Conservative Growth Fund.................... 67 707 10.56 --
</TABLE>
17
<PAGE> 20
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH FUND
--------------------------------------
CLASS I
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 13.39 $ 11.25 $ 10.00
------- ------- -------
Investment Activities:
Net investment income..................................... 0.29 0.12 0.09
Net realized and unrealized gains (losses) from
investments............................................ 0.69 2.49 1.25
------- ------- -------
Total from Investment Activities....................... 0.98 2.61 1.34
------- ------- -------
Distributions:
Net investment income..................................... (0.38) (0.12) (0.09)
Net realized gains........................................ (0.66) (0.35) --
------- ------- -------
Total Distributions.................................... (1.04) (0.47) (0.09)
------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 13.33 $ 13.39 $ 11.25
======= ======= =======
Total Return................................................ 7.85%(b) 23.81% 13.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $88,654 $86,355 $31,318
Ratio of expenses to average net assets................... 0.20%(c) 0.20% 0.20%(c)
Ratio of net investment income to average net assets...... 4.80%(c) 1.04% 1.70%(c)
Ratio of expenses to average net assets*.................. 0.32%(c) 0.36% 0.77%(c)
Ratio of net investment income to average net assets*..... 4.68%(c) 0.88% 1.13%(c)
Portfolio turnover (d).................................... 7.16% 4.05% 18.49%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
18
<PAGE> 21
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH FUND
--------------------------------------
CLASS A
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 13.33 $ 11.21 $ 10.00
------- ------- -------
Investment Activities:
Net investment income..................................... 0.26 0.10 0.07
Net realized and unrealized gains (losses) from
investments............................................ 0.70 2.47 1.21
------- ------- -------
Total from Investment Activities....................... 0.96 2.57 1.28
------- ------- -------
Distributions:
Net investment income..................................... (0.37) (0.10) (0.07)
Net realized gains........................................ (0.66) (0.35) --
------- ------- -------
Total Distributions.................................... (1.03) (0.45) (0.07)
------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 13.26 $ 13.33 $ 11.21
======= ======= =======
Total Return (Excludes Sales Charge)........................ 7.67%(b) 23.44% 12.84%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $65,312 $55,057 $ 4,439
Ratio of expenses to average net assets................... 0.45%(c) 0.45% 0.46%(c)
Ratio of net investment income to average net assets...... 4.48%(c) 0.78% 1.82%(c)
Ratio of expenses to average net assets*.................. 0.67%(c) 0.70% 1.62%(c)
Ratio of net investment income to average net assets*..... 4.26%(c) 0.53% 0.66%(c)
Portfolio turnover (d).................................... 7.16% 4.05% 18.49%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
19
<PAGE> 22
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH FUND
--------------------------------------
CLASS B
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 13.47 $ 11.34 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.17 0.02 0.04
Net realized and unrealized gains (losses) from
investments............................................ 0.75 2.48 1.34
-------- ------- -------
Total from Investment Activities....................... 0.92 2.50 1.38
-------- ------- -------
Distributions:
Net investment income..................................... (0.33) (0.02) (0.04)
Net realized gains........................................ (0.66) (0.35) --
-------- ------- -------
Total Distributions.................................... (0.99) (0.37) (0.04)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 13.40 $ 13.47 $ 11.34
======== ======= =======
Total Return (Excludes Sales Charge)........................ 7.23%(b) 22.52% 13.88%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $102,927 $70,515 $ 7,651
Ratio of expenses to average net assets................... 1.20%(c) 1.20% 1.20%(c)
Ratio of net investment income to average net assets...... 3.53%(c) 0.04% 0.97%(c)
Ratio of expenses to average net assets*.................. 1.33%(c) 1.35% 2.18%(c)
Ratio of net investment income to average net assets*..... 3.40%(c) (0.11%) (0.01%)(c)
Portfolio turnover (d).................................... 7.16% 4.05% 18.49%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
20
<PAGE> 23
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH FUND
---------------------------
CLASS C
---------------------------
SIX MONTHS JULY 1,
ENDED 1997 THROUGH
DECEMBER 31, JUNE 30,
1998 1998(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 13.34 $ 11.25
------- -------
Investment Activities:
Net investment income..................................... 0.19 0.02
Net realized and unrealized gains (losses) from
investments............................................ 0.72 2.45
------- -------
Total from Investment Activities....................... 0.91 2.47
------- -------
Distributions:
Net investment income..................................... (0.33) (0.03)
Net realized gains........................................ (0.66) (0.35)
------- -------
Total Distributions.................................... (0.99) (0.38)
------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 13.26 $ 13.34
======= =======
Total Return (Excludes Sales Charge)........................ 7.22%(b) 22.42%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $12,215 $ 8,772
Ratio of expenses to average net assets................... 1.20%(c) 1.20%
Ratio of net investment income to average net assets...... 3.66%(c) 0.04%
Ratio of expenses to average net assets*.................. 1.33%(c) 1.35%
Ratio of net investment income to average net assets*..... 3.53%(c) (0.11%)
Portfolio turnover (d).................................... 7.16% 4.05%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
21
<PAGE> 24
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH & INCOME FUND
--------------------------------------
CLASS I
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 12.57 $ 10.93 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.28 0.25 0.15
Net realized and unrealized gains (losses) from
investments............................................ 0.61 1.92 0.93
-------- ------- -------
Total from Investment Activities....................... 0.89 2.17 1.08
-------- ------- -------
Distributions:
Net investment income..................................... (0.36) (0.25) (0.15)
Net realized gains........................................ (0.47) (0.28) --
-------- ------- -------
Total Distributions.................................... (0.83) (0.53) (0.15)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 12.63 $ 12.57 $ 10.93
======== ======= =======
Total Return................................................ 7.43%(b) 20.34% 10.87%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $104,705 $98,060 $43,660
Ratio of expenses to average net assets................... 0.20%(c) 0.20% 0.20%(c)
Ratio of net investment income to average net assets...... 4.89%(c) 2.17% 2.78%(c)
Ratio of expenses to average net assets*.................. 0.27%(c) 0.34% 0.66%(c)
Ratio of net investment income to average net assets*..... 4.82%(c) 2.03% 2.32%(c)
Portfolio turnover (d).................................... 12.14% 11.38% 18.07%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
22
<PAGE> 25
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH & INCOME FUND
--------------------------------------
CLASS A
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 12.69 $ 11.02 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.24 0.22 0.12
Net realized and unrealized gains (losses) from
investments............................................ 0.65 1.95 1.02
-------- ------- -------
Total from Investment Activities....................... 0.89 2.17 1.14
-------- ------- -------
Distributions:
Net investment income..................................... (0.35) (0.22) (0.12)
Net realized gains........................................ (0.47) (0.28) --
-------- ------- -------
Total Distributions.................................... (0.82) (0.50) (0.12)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 12.76 $ 12.69 $ 11.02
======== ======= =======
Total Return (Excludes Sales Charge)........................ 7.31%(b) 20.18% 11.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 57,486 $39,874 $ 4,262
Ratio of expenses to average net assets................... 0.45%(c) 0.45% 0.46%(c)
Ratio of net investment income to average net assets...... 4.50%(c) 1.91% 2.67%(c)
Ratio of expenses to average net assets*.................. 0.63%(c) 0.67% 1.26%(c)
Ratio of net investment income to average net assets*..... 4.32%(c) 1.69% 1.87%(c)
Portfolio turnover (d).................................... 12.14% 11.38% 18.07%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
23
<PAGE> 26
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH & INCOME FUND
--------------------------------------
CLASS B
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 12.64 $ 11.00 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.17 0.14 0.09
Net realized and unrealized gains (losses) from
investments............................................ 0.66 1.92 1.00
-------- ------- -------
Total from Investment Activities....................... 0.83 2.06 1.09
-------- ------- -------
Distributions:
Net investment income..................................... (0.30) (0.14) (0.09)
Net realized gains........................................ (0.47) (0.28) --
-------- ------- -------
Total Distributions.................................... (0.77) (0.42) (0.09)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 12.70 $ 12.64 $ 11.00
======== ======= =======
Total Return (Excludes Sales Charge)........................ 6.86%(b) 19.13% 11.02%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $131,837 $85,468 $ 8,896
Ratio of expenses to average net assets................... 1.20%(c) 1.20% 1.21%(c)
Ratio of net investment income to average net assets...... 3.70%(c) 1.15% 1.94%(c)
Ratio of expenses to average net assets*.................. 1.28%(c) 1.32% 1.89%(c)
Ratio of net investment income to average net assets*..... 3.62%(c) 1.03% 1.26%(c)
Portfolio turnover (d).................................... 12.14% 11.38% 18.07%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
24
<PAGE> 27
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR GROWTH
& INCOME FUND
----------------------------
CLASS C
----------------------------
SIX MONTHS JULY 1,
ENDED 1997 THROUGH
DECEMBER 31, JUNE 30,
1998 1998(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $12.54 $10.93
------ ------
Investment Activities:
Net investment income..................................... 0.18 0.14
Net realized and unrealized gains (losses) from
investments............................................ 0.65 1.90
------ ------
Total from Investment Activities....................... 0.83 2.04
------ ------
Distributions:
Net investment income..................................... (0.30) (0.15)
Net realized gains........................................ (0.47) (0.28)
------ ------
Total Distributions.................................... (0.77) (0.43)
------ ------
NET ASSET VALUE, END OF PERIOD.............................. $12.60 $12.54
====== ======
Total Return (Excludes Sales Charge)........................ 6.92%(b) 19.08%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $9,909 $6,429
Ratio of expenses to average net assets................... 1.20%(c) 1.20%
Ratio of net investment income to average net assets...... 3.62%(c) 1.14%
Ratio of expenses to average net assets*.................. 1.28%(c) 1.31%
Ratio of net investment income to average net assets*..... 3.54%(c) 1.03%
Portfolio turnover (d).................................... 12.14% 11.38%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
25
<PAGE> 28
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR BALANCED FUND
--------------------------------------
CLASS I
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.81 $ 10.63 $ 10.00
------- ------- -------
Investment Activities:
Net investment income..................................... 0.25 0.37 0.21
Net realized and unrealized gains (losses) from
investments............................................ 0.51 1.39 0.63
------- ------- -------
Total from Investment Activities....................... 0.76 1.76 0.84
------- ------- -------
Distributions:
Net investment income..................................... (0.34) (0.36) (0.21)
Net realized gains........................................ (0.32) (0.22) --
------- ------- -------
Total Distributions.................................... (0.66) (0.58) (0.21)
------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.91 $ 11.81 $ 10.63
======= ======= =======
Total Return........................................... 6.65%(b) 17.02% 8.48%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $74,576 $93,557 $72,155
Ratio of expenses to average net assets................... 0.20%(c) 0.20% 0.20%(c)
Ratio of net investment income to average net assets...... 5.12%(c) 3.31% 3.84%(c)
Ratio of expenses to average net assets*.................. 0.26%(c) 0.32% 0.56%(c)
Ratio of net investment income to average net assets*..... 5.06%(c) 3.19% 3.48%(c)
Portfolio turnover (d).................................... 6.08% 9.71% 12.20%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
26
<PAGE> 29
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR BALANCED FUND
--------------------------------------
CLASS A
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.83 $ 10.66 $10.00
------- ------- ------
Investment Activities:
Net investment income (loss).............................. 0.22 0.34 0.17
Net realized and unrealized gains (losses) from
investments............................................ 0.51 1.39 0.66
------- ------- ------
Total from Investment Activities....................... 0.73 1.73 0.83
------- ------- ------
Distributions:
Net investment income..................................... (0.32) (0.34) (0.17)
Net realized gains........................................ (0.32) (0.22) --
------- ------- ------
Total Distributions.................................... (0.64) (0.56) (0.17)
------- ------- ------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.92 $ 11.83 $10.66
======= ======= ======
Total Return (Excludes Sales Charge)........................ 6.42%(b) 16.62% 8.41%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $56,855 $32,605 $2,176
Ratio of expenses to average net assets................... 0.45%(c) 0.45% 0.47%(c)
Ratio of net investment income to average net assets...... 4.57%(c) 3.01% 3.78%(c)
Ratio of expenses to average net assets*.................. 0.62%(c) 0.66% 1.12%(c)
Ratio of net investment income to average net assets*..... 4.40%(c) 2.80% 3.13%(c)
Portfolio turnover (d).................................... 6.08% 9.71% 12.20%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
27
<PAGE> 30
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR BALANCED FUND
--------------------------------------
CLASS B
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.82 $ 10.65 $10.00
-------- ------- ------
Investment Activities:
Net investment income..................................... 0.18 0.26 0.16
Net realized and unrealized gains (losses) from
investments............................................ 0.51 1.39 0.65
-------- ------- ------
Total from Investment Activities....................... 0.69 1.65 0.81
-------- ------- ------
Distributions:
Net investment income..................................... (0.28) (0.26) (0.16)
Net realized gains........................................ (0.32) (0.22) --
-------- ------- ------
Total Distributions.................................... (0.60) (0.48) (0.16)
-------- ------- ------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.91 $ 11.82 $10.65
======== ======= ======
Total Return (Excludes Sales Charge)........................ 6.05%(b) 15.85% 8.22%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $122,230 $70,463 $5,672
Ratio of expenses to average net assets................... 1.20%(c) 1.20% 1.22%(c)
Ratio of net investment income to average net assets...... 3.86%(c) 2.26% 2.93%(c)
Ratio of expenses to average net assets*.................. 1.27%(c) 1.31% 1.73%(c)
Ratio of net investment income to average net assets*..... 3.79%(c) 2.15% 2.42%(c)
Portfolio turnover (d).................................... 6.08% 9.71% 12.20%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
28
<PAGE> 31
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR BALANCED FUND
---------------------------
CLASS C
---------------------------
SIX MONTHS JULY 1,
ENDED 1997 THROUGH
DECEMBER 31, JUNE 30,
1998 1998(a)
------------ ------------
(Unaudited)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.77 $10.63
------- ------
Investment Activities:
Net investment income..................................... 0.19 0.26
Net realized and unrealized gains (losses) from
investments............................................ 0.51 1.37
------- ------
Total from Investment Activities....................... 0.70 1.63
------- ------
Distributions:
Net investment income..................................... (0.28) (0.27)
Net realized gains........................................ (0.32) (0.22)
------- ------
Total Distributions.................................... (0.60) (0.49)
------- ------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.87 $11.77
======= ======
Total Return (Excludes Sales Charge)........................ 6.16%(b) 15.66%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $10,031 $6,653
Ratio of expenses to average net assets................... 1.20%(c) 1.20%
Ratio of net investment income to average net assets...... 3.91%(c) 2.24%
Ratio of expenses to average net assets*.................. 1.27%(c) 1.30%
Ratio of net investment income to average net assets*..... 3.84%(c) 2.14%
Portfolio turnover (d).................................... 6.08% 9.71%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
29
<PAGE> 32
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR CONSERVATIVE GROWTH FUND
--------------------------------------
CLASS I
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.06 $ 10.33 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.26 0.46 0.26
Net realized and unrealized gains (losses) from
investments............................................ 0.25 0.82 0.33
-------- ------- -------
Total from Investment Activities....................... 0.51 1.28 0.59
-------- ------- -------
Distributions:
Net investment income..................................... (0.27) (0.45) (0.26)
Net realized gains........................................ (0.13) (0.10) --
-------- ------- -------
Total Distributions.................................... (0.40) (0.55) (0.26)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.17 $ 11.06 $ 10.33
======== ======= =======
Total Return................................................ 4.73%(b) 12.73% 6.00%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 33,911 $30,352 $15,038
Ratio of expenses to average net assets................... 0.20%(c) 0.20% 0.20%(c)
Ratio of net investment income to average net assets...... 4.96%(c) 4.43% 4.92%(c)
Ratio of expenses to average net assets*.................. 0.34%(c) 0.56% 1.46%(c)
Ratio of net investment income to average net assets*..... 4.82%(c) 4.07% 3.66%(c)
Portfolio turnover (d).................................... 2.96% 3.22% 28.46%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
30
<PAGE> 33
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR CONSERVATIVE GROWTH FUND
--------------------------------------
CLASS A
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.04 $ 10.32 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.24 0.43 0.22
Net realized and unrealized gains (losses) from
investments............................................ 0.26 0.82 0.32
-------- ------- -------
Total from Investment Activities....................... 0.50 1.25 0.54
-------- ------- -------
Distributions:
Net investment income..................................... (0.26) (0.43) (0.22)
Net realized gains........................................ (0.13) (0.10) --
-------- ------- -------
Total Distributions.................................... (0.39) (0.53) (0.22)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.15 $ 11.04 $ 10.32
======== ======= =======
Total Return (Excludes Sales Charge)........................ 4.61%(b) 12.38% 5.46%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 19,616 $12,538 $ 1,299
Ratio of expenses to average net assets................... 0.45%(c) 0.45% 0.47%(c)
Ratio of net investment income to average net assets...... 4.68%(c) 4.12% 4.76%(c)
Ratio of expenses to average net assets*.................. 0.69%(c) 0.82% 3.05%(c)
Ratio of net investment income to average net assets*..... 4.44%(c) 3.75% 2.18%(c)
Portfolio turnover (d).................................... 2.96% 3.22% 28.46%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
31
<PAGE> 34
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR CONSERVATIVE GROWTH FUND
--------------------------------------
CLASS B
--------------------------------------
SIX MONTHS YEAR DECEMBER 10,
ENDED ENDED 1996 THROUGH
DECEMBER 31, JUNE 30, JUNE 30,
1998 1998 1997(a)
------------ -------- ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 11.05 $ 10.33 $ 10.00
-------- ------- -------
Investment Activities:
Net investment income..................................... 0.19 0.37 0.19
Net realized and unrealized gains (losses) from
investments............................................ 0.27 0.81 0.33
-------- ------- -------
Total from Investment Activities....................... 0.46 1.18 0.52
-------- ------- -------
Distributions:
Net investment income..................................... (0.22) (0.36) (0.19)
Net realized gains........................................ (0.13) (0.10) --
-------- ------- -------
Total Distributions.................................... (0.35) (0.46) (0.19)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.16 $ 11.05 $ 10.33
======== ======= =======
Total Return (Excludes Sales Charge)........................ 4.33%(b) 11.53% 5.30%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $ 74,679 $39,489 $ 2,616
Ratio of expenses to average net assets................... 1.20%(c) 1.20% 1.21%(c)
Ratio of net investment income to average net assets...... 3.89%(c) 3.37% 4.06%(c)
Ratio of expenses to average net assets*.................. 1.34%(c) 1.47% 3.52%(c)
Ratio of net investment income to average net assets*..... 3.75%(c) 3.10% 1.75%(c)
Portfolio turnover (d).................................... 2.96% 3.22% 28.46%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
32
<PAGE> 35
- --------------------------------------------------------------------------------
The One Group Family of Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTOR CONSERVATIVE GROWTH FUND
----------------------------------
CLASS C
----------------------------------
SIX MONTHS JULY 1,
ENDED 1997 THROUGH
DECEMBER 31, JUNE 30,
1998 1998(a)
------------ ------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $11.03 $10.33
------ ------
Investment Activities:
Net investment income..................................... 0.21 0.35
Net realized and unrealized gains (losses) from
investments............................................ 0.25 0.81
------ ------
Total from Investment Activities....................... 0.46 1.16
------ ------
Distributions:
Net investment income..................................... (0.22) (0.36)
Net realized gains........................................ (0.13) (0.10)
------ ------
Total Distributions.................................... (0.35) (0.46)
------ ------
NET ASSET VALUE, END OF PERIOD.............................. $11.14 $11.03
====== ======
Total Return (Excludes Sales Charge)........................ 4.22%(b) 11.48%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)......................... $4,724 $3,788
Ratio of expenses to average net assets................... 1.20%(c) 1.20%
Ratio of net investment income to average net assets...... 3.96%(c) 3.39%
Ratio of expenses to average net assets*.................. 1.34%(c) 1.47%
Ratio of net investment income to average net assets*..... 3.82%(c) 3.12%
Portfolio turnover (d).................................... 2.96% 3.22%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares issued.
See notes to financial statements.
33
<PAGE> 36
Important Customer Information.
Please Read:
Shares of The One Group:
o are not deposits or obligations
of, or guaranteed by, BANK ONE
CORPORATION or its affiliates
o 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
o 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 The One
Group, for which it receives advisory
fees. The One Group is distributed by
The One Group Services Company,
3435 Stelzer Road, Columbus,
Ohio 43219, which is not affiliated
with 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 The One Group Funds, including
management fees and expenses, you may
obtain a prospectus from The One Group
Services Company. Read the prospectus
carefully before investing.
BANC ONE
INVESTMENT
ADVISORS
CORPORATION
[BANK ONE LOGO]
