<PAGE> 1
INSTITUTIONAL MONEY
MARKET FUNDS
ANNUAL REPORT
For the year ended June 30, 1999
INSTITUTIONAL PRIME MONEY MARKET FUND
TREASURY ONLY MONEY MARKET FUND
GOVERNMENT 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.............................................5
Statements of Assets and Liabilities...........................................8
Statements of Operations.......................................................9
Statements of Changes in Net Assets...........................................10
Notes to Financial Statements.................................................11
Financial Highlights..........................................................15
Report of Independent Accountants.............................................18
1
<PAGE> 4
One Group Institutional 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 Institutional Prime Money Market Fund was 4.97%
on June 30, 1999.
WHAT WERE YOUR PRIMARY STRATEGIES AND TACTICS FOR THIS NEW FUND?
The Fund was launched on April 19, 1999. It was invested in repurchase
agreements until it reached a targeted asset level. After that, the Fund was
diversified through the purchase of commercial paper and other corporate money
market securities. We maintained a very short average weighted maturity,
relative to the Fund's peers. On June 30, 1999, the average weighted maturity
was 25 days.
HOW DID YOUR STRATEGY AFFECT THE FUND'S PERFORMANCE?
The relatively short average weighted maturity of the Fund allowed us to take
advantage of rising interest rates quickly. Rates continued to increase in
anticipation of the Federal Open Market Committee meeting at the end of June. As
expected, the Fed raised the federal funds target rate 25 basis points to 5%
(one basis point equals 1/100th of a percentage point). As the short-term
maturities of the Fund's assets rolled off, we reinvested in instruments with
higher yields.
On June 1, Standard & Poor's assigned a "AAA" rating to the Fund. The rating
indicates the Fund invests in the highest-quality securities offering the lowest
risk to investors. To achieve this rating, a fund must maintain an average
weighted maturity no longer than 60 days.
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 J. Madich
Gary J. Madich, CFA
Chief Investment Officer of Fixed Income Securities
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
7 DAY YIELD 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C> <C>
4.97% NA NA NA 0.94%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
2
<PAGE> 5
One Group Treasury Only 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 Treasury Only Money Market Fund was 4.46% on
June 30, 1999, down slightly from 5.04% 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 employed a combination of maturity strategies throughout the year, including
a barbell structure and a ladder approach. When prospects for increased yields
were high, we employed a barbell strategy. In using the barbell maturity
structure, we purchased securities at the short and long ends of our maturity
range. The Fund was able to capture yield advantages from the longer-term
securities and maintain liquidity with the shorter-term instruments. As the
outlook moved to neutral or lower yields, we progressed toward a ladder
approach, purchasing securities across the entire curve.
At year end, the Fund's average maturity was 55 days, compared to 49 days on
June 30, 1998. The Fund maintained its "AAA" quality rating--the highest
available--from Standard & Poor's and Moody's Investor Service. To receive this
rating, a fund must have an average maturity no greater than 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
7 DAY YIELD 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C> <C>
4.46% 4.69% 5.17% NA 4.78%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
3
<PAGE> 6
One Group Government 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 Government Money Market Fund was 4.85% on June
30, 1999, down slightly from 5.56% 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 during the year. This
common strategy involves favoring securities at the long and short ends of a
particular maturity range over 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 and benefit from higher yields--the
"long" securities offered the yield advantages, while the "short" securities
provided liquidity.
At year end, the Fund's average maturity was 56 days, compared to 37 days on
June 30, 1998.
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
7 DAY YIELD 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
<S> <C> <C> <C> <C> <C>
4.85% 5.13% 5.45% NA 5.09%
</TABLE>
Please refer to the prospectus and the accompanying financial statements for
more information about the Fund.
4
<PAGE> 7
- --------------------------------------------------------------------------------
One Group Mutual Funds
Institutional 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 (93.6%):
Asset Backed (53.5%):
$1,200 Ace Overseas Corp., 5.08%,
8/16/99............................. $ 1,192
300 Amsterdam Funding Corp., 5.05%,
7/26/99........................... 299
450 Amsterdam Funding Corp., 5.15%,
7/26/99........................... 448
250 Bavaria T.R.R. Corp., 5.05%,
7/12/99........................... 250
550 CC U.S.A. Inc., 5.13%, 7/22/99...... 548
250 CC U.S.A. Inc., 5.11%, 8/11/99...... 249
1,200 Concord Minutemen Capital Co.,
L.L.C., 5.05%, 7/15/99............ 1,198
1,000 Dakota (Citibank Credit Card Master
Trust) 5.07%, 8/4/99.............. 995
777 Enterprise Funding Corp., 5.08%,
7/23/99........................... 775
750 Greenwich Funding Corp., 5.07%,
7/20/99........................... 748
681 Kitty Hawk Funding Corp., 5.14%,
7/19/99........................... 679
800 Lexington Parker Capital Co.,
L.L.C., 5.05%, 7/8/99............. 799
897 Old Line Funding Corp., 5.10%,
9/1/99............................ 889
1,200 Park Avenue Receivables Corp, 5.05%,
7/15/99........................... 1,198
280 Quincy Capital Corp., 5.05%,
7/6/99............................ 280
300 Sceptre International, Inc., 5.08%,
7/19/99........................... 299
600 Sceptre International, Inc., 5.10%,
7/19/99........................... 598
300 Sheffield Receivables Corp., 5.05%
7/9/99............................ 300
750 Sigma Finance Corp., 5.14%,
7/2/99............................ 750
1,232 Special Purpose Accounts Receivable,
5.07%, 7/7/99..................... 1,231
300 Special Purpose Accounts Receivable
Cooperative Corp., 5.06%,
7/21/99........................... 299
----------
13,276
----------
Automotive (1.2%):
300 American Honda Finance Corp., 5.05%,
7/7/99............................ 300
----------
Banking (1.2%):
300 Galicia Buenos Aires Funding Corp.,
5.40%, 3/28/00.................... 288
----------
Beverages (2.8%):
700 Coca Cola Enterprises, 4.84%,
8/16/99........................... 695
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ------------------------------------ ----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Brokerage Services (3.0%):
$ 750 Lehman Brothers Holdings Inc.,
5.12%, 7/13/99.................... $ 749
----------
Cement (4.0%):
1,000 Cemex S.A. De CV, 5.05%, 7/6/99..... 999
----------
Construction Machinery & Equipment (1.0%):
250 Caterpillar Financial Services
Corp., 5.05%, 7/27/99............. 249
----------
Gas & Electric Utility (7.9%):
750 Cogentrix of Richmond, 5.20%,
7/23/99........................... 748
1,200 Duke Capital Corp., 5.05%,
7/14/99........................... 1,197
----------
1,945
----------
Information Systems (1.2%):
300 CSC Enterprises, 5.05%, 7/12/99..... 300
----------
Insurance (3.0%):
750 Aetna Services, Inc., 5.05%,
7/9/99............................ 749
----------
Mortgage Bankers & Correspondents (5.2%):
300 Countrywide Home Loans, 5.07%,
8/19/99........................... 298
1,000 Homeside Lending Inc., 5.05%,
7/13/99........................... 998
----------
1,296
----------
Motorcycles (1.2%):
300 Harley-Davidson Funding, 5.07%,
7/8/99............................ 300
----------
Office Equipment & Services (3.0%):
750 Xerox Capital De Mexico S.A. De CV,
7.03%, 7/13/99.................... 749
----------
Oil & Gas Exploration (1.2%):
300 Petroleo Brasileiro S.A., 5.08%,
8/16/99........................... 298
----------
Transportation & Shipping (1.2%):
300 Dixie Overseas Limited, 5.10%,
7/21/99........................... 299
----------
Total Commercial Paper 23,240
----------
REPURCHASE AGREEMENTS (7.8%):
1,949 Goldman Sachs, 5.10%, 7/1/99,
(Collateralized by $2,007 various
U.S. Government Securities,
6.00% -- 7.50%, 3/1/14-6/1/29,
market value $2,116).............. 1,949
----------
Total Repurchase Agreements 1,949
----------
Total (Amortized Cost $25,189)(a) $ 25,189
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $24,847.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
5
<PAGE> 8
- --------------------------------------------------------------------------------
One Group Mutual Funds
Treasury Only 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 (99.4%):
U.S. Treasury Bills (67.4%):
$ 643 7/22/99............................. $ 641
110,861 7/29/99............................. 110,486
74,677 8/5/99.............................. 74,352
26,439 8/12/99............................. 26,301
87,593 8/19/99............................. 87,057
103,402 9/2/99.............................. 102,584
78,153 9/9/99.............................. 77,470
59,695 9/16/99............................. 59,119
50,000 9/23/99 (b)......................... 49,463
50,000 9/30/99............................. 49,407
1,681 4/27/00............................. 1,617
----------
638,497
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ------------------------------------ ----------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS, CONTINUED:
U.S. Treasury Notes (32.0%):
$ 50,000 6.88%, 7/31/99...................... $ 50,087
85,000 5.88%, 7/31/99 (b).................. 85,091
150,000 6.00%, 8/15/99...................... 150,232
7,875 5.63%, 10/31/99..................... 7,905
10,000 5.88%, 2/15/00...................... 10,070
----------
303,385
----------
Total U.S. Treasury Obligations 941,882
----------
Total (Amortized Cost $941,882)(a) $ 941,882
==========
</TABLE>
- ------------
Percentages indicated are based on net assets of $947,205.
(a) Represents cost for financial reporting purposes and differs from cost for
federal income tax by $4.
(b) A portion of this security was loaned as of June 30, 1999.
See notes to financial statements.
6
<PAGE> 9
- --------------------------------------------------------------------------------
One Group Mutual Funds
Government 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. GOVERNMENT AGENCY SECURITIES (45.9%):
Federal Farm Credit Bank (0.7%):
$ 25,000 5.50%, 8/3/99....................... $ 24,998
----------
Federal Home Loan Bank (18.9%):
25,000 5.54%, 7/15/99...................... 24,999
25,000 5.57%, 8/3/99....................... 24,998
22,000 5.25%, 8/12/99*..................... 21,998
50,000 4.96%, 10/13/99..................... 49,323
75,000 4.98%, 1/26/00*..................... 75,001
50,000 4.95%, 2/17/00...................... 49,989
55,000 4.95%, 2/22/00...................... 54,981
47,545 5.00%, 2/24/00...................... 47,515
60,000 5.10%, 3/3/00....................... 59,985
10,000 5.06%, 3/3/00....................... 9,996
30,000 5.72%, 4/14/00...................... 30,154
60,000 5.01%, 4/20/00...................... 60,000
60,000 4.72%, 4/24/00...................... 57,656
30,000 5.02%, 5/12/00...................... 29,946
35,000 5.20%, 5/26/00...................... 34,991
25,000 5.42%, 6/14/00...................... 24,975
----------
656,507
----------
Federal Home Loan Mortgage Corp. (10.1%):
110,551 4.81%, 7/2/99....................... 110,536
175,000 4.68%, 7/15/99...................... 174,682
25,000 5.54%, 8/13/99...................... 24,998
30,000 5.18%, 6/13/00...................... 28,498
15,000 5.28%, 6/30/00...................... 14,197
----------
352,911
----------
Federal National Mortgage Assoc. (7.3%):
20,000 5.10%, 7/26/99*..................... 20,000
50,000 4.75%, 9/17/99...................... 49,485
10,000 5.10%, 9/22/99*..................... 10,000
60,000 5.04%, 9/24/99...................... 59,286
30,000 5.17%, 12/13/99..................... 29,289
60,000 4.69%, 4/3/00....................... 57,835
30,000 4.78%, 5/5/00....................... 28,769
----------
254,664
----------
Student Loan Marketing Assoc. (8.9%):
10,000 5.04%, 8/2/99*...................... 10,000
75,000 5.48%, 11/24/99*.................... 74,993
225,000 5.46%, 2/15/00*..................... 224,917
----------
309,910
----------
Total U.S. Government Agency Securities 1,598,990
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
- --------- ------------------------------------ ----------
<C> <S> <C>
REPURCHASE AGREEMENTS (54.6%):
$119,000 Barclays de Zoette Wedd, 4.95%,
7/1/99 (Collateralized by $123,320
various U.S. Government
Securities, 5.13% -- 7.15%,
6/29/01 -- 4/29/09, market value
$121,380)......................... $ 119,000
94,000 Donaldson, Lufkin & Jenrette, 4.90%,
7/1/99 (Collateralized by $96,360
various U.S. Government
Securities, 0.00% -- 6.41%,
7/6/99 -- 4/30/04, market value
$95,883).......................... 94,000
563,000 Goldman Sachs, 5.10%, 7/1/99
(Collateralized by $1,288,030
various U.S. Government
Securities, 0.00% -- 7.70%,
10/1/02 -- 4/1/38, market value
$579,890)......................... 563,000
42,938 Goldman Sachs, 1.50%, 7/1/99
(Collateralized by $43,743 U.S.
Treasury Note, 5.75%, 6/30/01,
market value $43,798)............. 42,938
750,000 J. P. Morgan Securities, 5.10%,
7/1/99 (Collateralized by $826,846
various U.S. Government
Securities, 6.50%,
8/15/27 -- 11/15/28, market value
$772,500)......................... 750,000
149,000 Lehman Brothers, 4.91%, 7/1/99 (Col-
lateralized by $158,930 various
U.S. Government Securities,
0.00% -- 7.53%, 1/19/00 - 7/27/18,
market value $151,935)............ 149,000
133,000 State Street Bank and Trust, 4.90%,
7/1/99 (Collateralized by $136,135
various U.S. Government
Securities, 4.90% -- 5.53%,
4/26/00 -- 3/8/02, market value
$135,666)......................... 133,000
50,000 Westdeutsche Landesbank, 5.00%,
7/1/99 (Collaterallized by $50,100
various U.S. Government
Securities, 6.50% -- 11.25%,
2/15/15 -- 6/1/29, market value
$51,798).......................... 50,000
----------
Total Repurchase Agreements 1,900,938
----------
Total (Amortized Cost $3,499,928) (a) $3,499,928
==========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $3,482,581.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Securities having interest rates that reset weekly based on the U.S. Treasury
Bill auctions. The rate reflected on the Schedule of Portfolio Investments is
the rate in effect at June 30, 1999.
See notes to financial statements.
7
<PAGE> 10
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1999
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
INSTITUTIONAL PRIME TREASURY ONLY GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------- ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost............................ $23,240 $941,882 $1,598,990
Repurchase agreements, at cost............................ 1,949 -- 1,900,938
------- -------- ----------
Total..................................................... 25,189 941,882 3,499,928
Cash...................................................... 3 136 1
Interest receivable....................................... -- 7,179 11,253
Receivable for capital shares issued...................... -- 1,435 --
Prepaid expenses and other assets......................... 3 20 34
------- -------- ----------
TOTAL ASSETS.............................................. 25,195 950,652 3,511,216
------- -------- ----------
LIABILITIES:
Dividends payable......................................... 59 3,160 13,628
Payable to brokers for investments purchased.............. 287 -- 14,197
Accrued expenses and other payables:
Investment advisory fees............................. 1 57 234
Administration fees.................................. 1 36 144
Other................................................ -- 194 432
------- -------- ----------
TOTAL LIABILITIES......................................... 348 3,447 28,635
------- -------- ----------
NET ASSETS:
Capital................................................... 24,847 947,295 3,482,641
Accumulated undistributed net realized gains (losses) from
investment transactions................................. -- (90) (60)
------- -------- ----------
NET ASSETS................................................ $24,847 $947,205 $3,482,581
======= ======== ==========
Outstanding shares of beneficial interest................. 24,847 947,317 3,482,641
======= ======== ==========
NET ASSET VALUE:
Offering and redemption price per share................. $ 1.00 $ 1.00 $ 1.00
======= ======== ==========
</TABLE>
See notes to financial statements.
8
<PAGE> 11
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
(Amounts in thousands)
<TABLE>
<CAPTION>
INSTITUTIONAL PRIME TREASURY ONLY GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------- -------------- --------------
APRIL 19, 1999 TO YEAR ENDED YEAR ENDED
JUNE 30, 1999(a) JUNE 30, 1999 JUNE 30, 1999
------------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................................... $98 $40,181 $182,289
Income from securities lending...................... -- 231 17
--- ------- --------
Total Income........................................ 98 40,412 182,306
--- ------- --------
EXPENSES:
Investment advisory fees............................ 2 681 2,810
Administration fees................................. 1 425 1,756
Custodian and accounting fees....................... 1 32 140
Legal and audit fees................................ 1 31 15
Trustees' fees and expenses......................... --(b) 15 45
Transfer agent fees................................. --(b) 20 12
Registration and filing fees........................ 2 159 1,034
Printing costs...................................... --(b) 42 120
Other............................................... --(b) 34 39
--- ------- --------
Total expenses before waivers....................... 7 1,439 5,971
Less waivers........................................ (3) -- --
--- ------- --------
Net Expenses........................................ 4 1,439 5,971
--- ------- --------
Net Investment Income............................... 94 38,973 176,335
--- ------- --------
REALIZED GAINS (LOSSES) FROM INVESTMENT
TRANSACTIONS:
Net realized gains (losses) from investment
transactions...................................... -- 3 62
--- ------- --------
Change in net assets resulting from operations...... $94 $38,976 $176,397
=== ======= ========
</TABLE>
- ---------------
(a) Period from commencement of operations.
(b) Amount is less than $1,000.
See notes to financial statements.
9
<PAGE> 12
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
INSTITUTIONAL PRIME TREASURY ONLY GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------- ------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 19, 1999 TO JUNE 30, JUNE 30, JUNE 30, JUNE 30,
JUNE 30, 1999(a) 1999 1998 1999 1998
------------------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........ $ 94 $ 38,973 $ 33,556 $ 176,335 $ 118,890
Net realized gains (losses)
from investment
transactions............... -- 3 (1) 62 62
-------- ----------- ----------- ------------ -----------
Change in net assets resulting
from operations................. 94 38,976 33,555 176,397 118,952
-------- ----------- ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income... (94) (38,973) (33,556) (176,335) (118,890)
-------- ----------- ----------- ------------ -----------
Change in net assets from
shareholder distributions....... (94) (38,973) (33,556) (176,335) (118,890)
-------- ----------- ----------- ------------ -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued..................... 40,208 2,888,025 2,224,094 10,134,570 10,068,682
Proceeds from shares issued
in Marquis acquisition..... -- 69,923 -- -- --
Dividends reinvested......... -- 1,884 2,709 15,516 16,460
Cost of shares redeemed...... (15,361) (2,732,200) (1,988,092) (10,379,819) (7,456,390)
-------- ----------- ----------- ------------ -----------
Change in net assets from share
transactions.................... 24,847 227,632 238,711 (229,733) 2,628,752
-------- ----------- ----------- ------------ -----------
Change in net assets.............. 24,847 227,635 238,710 (229,671) 2,628,814
NET ASSETS:
Beginning of period.......... -- 719,570 480,860 3,712,252 1,083,438
-------- ----------- ----------- ------------ -----------
End of period................ $ 24,847 $ 947,205 $ 719,570 $ 3,482,581 $ 3,712,252
======== =========== =========== ============ ===========
SHARE TRANSACTIONS:
Issued....................... 40,208 2,888,049 2,224,095 10,134,724 10,068,682
Issued in Marquis
acquisition................ -- 69,923 -- -- --
Reinvested................... -- 1,884 2,710 15,516 16,459
Redeemed..................... (15,361) (2,732,202) (1,988,092) (10,379,973) (7,456,390)
-------- ----------- ----------- ------------ -----------
Change in shares.................. 24,847 227,654 238,713 (229,733) 2,628,751
======== =========== =========== ============ ===========
</TABLE>
- ---------------
(a) Period from commencement of operations.
See notes to financial statements.
10
<PAGE> 13
- --------------------------------------------------------------------------------
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 Institutional
Prime Money Market Fund, the Treasury Only Money Market Fund, and the
Government Money Market Fund (individually a "Fund", collectively the
"Funds") only. The Funds are diversified mutual funds and are not offered in
multiple classes.
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 Funds' investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Institutional Prime Money Market Fund Seeks high current income with liquidity and
stability of principal.
Treasury Only Money Market Fund Seeks high current income with liquidity and
stability of principal with added assurance of
a fund that does not purchase securities that
are subject to repurchase agreements.
Government Money Market Fund Seeks high current income with liquidity and
stability of principal.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Securities are valued utilizing the amortized cost method permitted in
accordance with Rule 2a-7 under the 1940 Act. Under the amortized cost
method, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the Funds may not (a) purchase any
instrument with a remaining maturity greater than 397 days unless such
instrument is subject to a demand feature, or (b) maintain a
dollar-weighted average maturity which exceeds 90 days.
REPURCHASE AGREEMENTS
The Institutional Prime Money Market Fund and the Government Money Market
Fund may invest in repurchase agreements with institutions that are deemed
by Banc One Investment Advisors Corporation (the "Advisor") to be of good
standing and creditworthy under guidelines established by the Board of
Trustees. Each repurchase agreement is recorded at cost. The Fund requires
that the securities purchased in a repurchase agreement transaction be
transferred to the custodian in a manner sufficient to enable the Fund to
obtain those securities in the event of a counterparty default. The
seller, under the repurchase agreement, is required to maintain the value
of the securities held at not less than the repurchase price, including
accrued interest. Repurchase agreements are considered to be loans by a
fund under the 1940 Act.
11
Continued
<PAGE> 14
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net
realized gains or losses from sales of securities are determined on the
specific identification cost method. Interest income and expenses are
recognized on the accrual basis. Interest income, including any discount
or premium, is accrued as earned using the effective interest method.
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33 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 following Fund had securities with the following amortized
cost on loan (amounts in thousands):
<TABLE>
<CAPTION>
AMORTIZED AMORTIZED AMORTIZED
COST COST COST
OF CASH OF NON-CASH OF LOANED
COLLATERAL COLLATERAL SECURITIES
---------- ------------ -----------
<S> <C> <C> <C>
Treasury Only Money Market Fund........................ -- $141,463 $134,554
</TABLE>
The loaned securities were fully collateralized by U.S. Government
securities as of June 30, 1999.
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.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly.
Net investment 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.
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, 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
12
Continued
<PAGE> 15
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
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 tax.
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,
and not all funds offer all classes of shares. 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.
4. INVESTMENT ADVISORY, ADMINISTRATIVE AND DISTRIBUTION AGREEMENTS:
The Trust and Advisor are parties to an investment advisory agreement under
which the Advisor is entitled to receive a fee, computed daily and paid
monthly, equal to 0.08% of the average daily net assets of the Treasury Only
Money Market Fund and the Government Money Market Fund; and 0.10% of the
average daily net assets of the Institutional Prime Money Market Fund.
The Trust and The One Group Services Company (the "Administrator"), a
wholly-owned subsidiary of The BISYS Group, Inc., are parties to an
administrative agreement under which the Administrator provides services for
a fee that is computed daily and paid monthly at an annual rate of 0.05% of
each Fund's average daily net assets. 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 One Group Services Company (the "Distributor") and the Trust are parties
to a distribution agreement under which shares of the Funds are sold on a
continuous basis. No compensation is paid to the Distributor for distribution
services for 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 and Administrator 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 (amount in thousands):
<TABLE>
<CAPTION>
INVESTMENT
ADVISORY ADMINISTRATION
FEES WAIVED FEES WAIVED
------------- --------------
<S> <C> <C>
Institutional Prime Money Market Fund....................... $2 $1
</TABLE>
5. REORGANIZATION:
The Trust entered an Agreement and Plan of Reorganization and Liquidation
("the 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 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
13
Continued
<PAGE> 16
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED JUNE 30, 1999
Meeting. The following is a summary of shares outstanding and net assets,
immediately before and after the Reorganization (amounts in thousands):
<TABLE>
<CAPTION>
AFTER
BEFORE REORGANIZATION REORGANIZATION
------------------------------------ --------------
MARQUIS INSTITUTIONAL TREASURY TREASURY
MONEY ONLY MONEY ONLY MONEY
MARKET FUND MARKET FUND MARKET FUND
--------------------- ----------- --------------
<S> <C> <C> <C>
Shares......................................... 69,923 743,308 813,231
Net assets..................................... $69,923 $743,224 $813,147
</TABLE>
6. SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED):
A Special Meeting of Shareholders of the One Group Mutual Funds was held. 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
FUND NAME FOR AGAINST ABSTAIN NON-VOTE
--------- ------------- ------- ---------- ---------
<S> <C> <C> <C> <C>
Treasury Only Money Market Fund.................. 401,010,749 -- 4,822,055 --
Government Money Market Fund..................... 2,549,523,536 -- 15,775,012 --
</TABLE>
2. To ratify the selection of independent accountants.
<TABLE>
<CAPTION>
BROKER
FUND NAME FOR AGAINST ABSTAIN NON-VOTE
--------- ------------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Treasury Only Money Market Fund................ 401,005,300 4,598 4,822,905 --
Government Money Market Fund................... 2,543,907,044 5,570,725 15,820,778 --
</TABLE>
3. To approve a change to a fundamental investment restriction by eliminating
language which prohibits 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>
Treasury Only Money Market Fund................. 401,013,629 150,854 4,613,941 54,380
Government Money Market Fund.................... 2,548,170,379 316,169 16,811,999 1
</TABLE>
7. 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>
EXPIRES
------------
FUND 2005 2006 TOTAL
---- ---- ---- -----
<S> <C> <C> <C>
Treasury Only Money Market Fund............................. 15 17 32
Government Money Market Fund................................ 59 -- 59
</TABLE>
Capital losses incurred after October 31 within the fund's fiscal year may be
deferred and treated as occurring on the first day of the following year. The
following deferred losses will be treated as arising on the first day of the
fiscal year ended June 30, 1999 (amounts in thousands):
<TABLE>
<CAPTION>
FUND AMOUNT
---- ------
<S> <C>
Treasury Only Money Market Fund............................. $54
</TABLE>
14
Continued
<PAGE> 17
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INSTITUTIONAL PRIME
MONEY MARKET FUND
-------------------
APRIL 19, 1999
TO
JUNE 30, 1999(a)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 1.000
-------
Investment Activities:
Net investment income (loss).............................. 0.009
-------
Distributions:
Net investment income..................................... (0.009)
-------
NET ASSET VALUE, END OF PERIOD.............................. $ 1.000
=======
Total Return................................................ 0.94% (b)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $24,847
Ratio of expenses to average net assets................... 0.18% (c)
Ratio of net investment income to average net assets...... 4.73% (c)
Ratio of expenses to average net assets*.................. 0.33% (c)
Ratio of net investment income to average net assets*..... 4.58% (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.
15
<PAGE> 18
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TREASURY ONLY MONEY MARKET FUND
--------------------------------------------------------
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 0.052 0.051 0.052 0.051
-------- -------- -------- -------- --------
Distributions:
Net investment income................... (0.046) (0.052) (0.051) (0.052) (0.051)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Return.............................. 4.69% 5.30% 5.24% 5.38% 5.22%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)....... $947,205 $719,570 $480,860 $415,961 $288,697
Ratio of expenses to average net
assets............................... 0.17% 0.15% 0.15% 0.17% 0.20%
Ratio of net investment income to
average net assets................... 4.58% 5.18% 5.12% 5.23% 5.14%
Ratio of expenses to average net
assets*.............................. 0.17% 0.15% 0.15% 0.17% 0.21%
Ratio of net investment income to
average net assets*.................. 4.58% 5.18% 5.12% 5.23% 5.13%
</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.
16
<PAGE> 19
- --------------------------------------------------------------------------------
One Group Mutual Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------
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............... 0.050 0.055 0.053 0.055 0.053
---------- ---------- ---------- -------- --------
Distributions:
Net investment income............... (0.050) (0.055) (0.053) (0.055) (0.053)
---------- ---------- ---------- -------- --------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ======== ========
Total Return.......................... 5.13% 5.64% 5.43% 5.61% 5.41%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)... $3,482,581 $3,712,252 $1,083,438 $855,613 $720,699
Ratio of expenses to average net
assets........................... 0.17% 0.15% 0.14% 0.18% 0.21%
Ratio of net investment income to
average net assets............... 5.02% 5.48% 5.31% 5.46% 5.28%
Ratio of expenses to average net
assets*.......................... 0.17% 0.15% 0.14% 0.18% 0.22%
Ratio of net investment income to
average net assets*.............. 5.02% 5.48% 5.31% 5.46% 5.27%
</TABLE>
- ------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
17
<PAGE> 20
- --------------------------------------------------------------------------------
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 Institutional Prime Money
Market Fund, the Treasury Only Money Market Fund and the Government Money Market
Fund (three 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, 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.
PricewaterhouseCoopers LLP
Columbus, Ohio
August 20, 1999
18
<PAGE> 21
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<PAGE> 22
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<PAGE> 23
(This page has been left blank intentionally.)
<PAGE> 24
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-033-AN (8/99)
