<PAGE> 1
ONE FUND(SM)
WEALTH-BUILDING OPPORTUNITTY
ANNUAL REPORT
ONE Fund, Inc.
[Graphic]
June 30, 1996
<PAGE> 2
ONE Fund President's Message
We are pleased to provide you with an update of ONE Fund's performance and
investment activity during its annual reporting period ended June 30, 1996.
Despite a somewhat unsettled investment climate prevailing during the 12 months
from July 1995 through June 1996, results were positive. Investment performance
of ONE Fund's eight portfolios was generally favorable. In addition,
shareholders approved the appointment of Ohio National Investments, Inc. as
investment adviser to ONE Fund, as of May 1, 1996.
[picture of Donald J. Zimmerman, President]
THE YEAR IN REVIEW
Conditions were favorable in the latter half of 1995, with rising sales,
strong corporate earnings, declining interest rates and continued mild
inflation. Stocks and bonds both advanced strongly and, as the year drew to a
close, the economy was growing at a moderate pace and Congress and the White
House were discussing a balanced budget agreement. In December 1995 and again in
January 1996 the Federal Reserve in fact lowered the federal funds rate
one-quarter percentage point, to 5.25%.
The investment climate began to shift somewhat in early 1996. Testifying
before Congress in February, Federal Reserve Chairman Alan Greenspan discounted
market expectations of further rate cuts. Shortly thereafter, February's
employment report came in considerably higher than most analysts' predictions.
Adding turbulence to the general conditions were several government shutdowns,
severe weather throughout much of the country and a strike against General
Motors. Despite those influences, first quarter economic performance was
surprisingly strong and growth in the gross domestic product exceeded
expectations.
In the second quarter of 1996, the level of consumer confidence remained
high (despite a drop in June). Bolstered by rising income levels, consumers kept
on spending in the face of higher long-term interest rates, mounting debts and
low savings. With jobs growing at nearly twice the pace of the labor force, wage
growth began to pose an inflationary threat. Stock prices overall exhibited a
high degree of volatility before finishing the quarter strongly. Bonds generally
limped along in the face of rising interest rates.
ACHIEVEMENTS
Achievements of ONE Fund's portfolios included the following:
o Five of ONE Fund's eight portfolios generated double-digit total returns for
the 12-month period. Leading the way was the Small Cap Portfolio at 24.1%,
followed by the Growth Portfolio at 22.2%, the International Portfolio at
18.7%, the Global Contrarian Portfolio at 17.8% and the Income & Growth
Portfolio at 14.5%. Three portfolios - International, Small Cap and Growth -
had total returns in excess of 10% for the most recent six months.
o The Growth and Income & Growth portfolios achieved four-star ratings from
Morningstar, Inc. upon reaching their third anniversaries in August, 1995.
The International Portfolio likewise attained a four-
1
<PAGE> 3
star rating from Morningstar upon marking its third anniversary in May,
1996. Four stars signify a fund's ranking in the top third of its
investment class.
o Based on its total return performance for the three-year period ending June
30, 1996, the International Portfolio received five stars from Morningstar,
ranking it in the top 10% of funds in its investment class. It also received
an "A" rating from The Wall Street Journal, ranking it in the top 20% of
funds in its investment class for the same period.
o The Income & Growth Portfolio was named one of the Top 10 Balanced funds for
three-year total return by Your Money magazine in its June/July 1996 issue.
o Strong growth in ONE Fund's asset base signaled favorable investment
performance and continued confidence from shareholders. On June 30, 1995,
ONE Fund's total assets stood at $60.3 million. A year later, as of June 30,
1996, they exceeded $76.8 million, a 27.2% increase. Growth was especially
strong in the stock-oriented portfolios, where assets increased by 42.8%.
Note that performance results for two of ONE Fund's portfolios - the Growth
Portfolio and the International Portfolio - are now reported in the mutual funds
listings of many newspapers and business publications, including The Wall Street
Journal, Barron's and USA Today. The portfolios are listed under the
abbreviations ONEGrow and ONEIntl.
PERFORMANCE
Performance of ONE Fund's portfolios included the following:
o The Small Cap Portfolio, managed by Ohio National Investments, Inc.,
recorded a total return of 10.68% for the six-month period and 24.10% for
the year. It seeks maximum capital growth by investing primarily in common
stocks of small- and medium-sized companies. Small-company stock mutual
funds tracked by Lipper Analytical Services averaged a 29.71% total return
for the period. Assets of the Small Cap Portfolio increased by 53% for the
year, to $4.5 million.
o The Growth Portfolio, also managed by Ohio National Investments, Inc.,
achieved a total return of 10.78% for the six-month period and 22.22% for
the year. Its objective is long-term capital growth. Growth stock mutual
funds tracked by Lipper averaged a 22.19% total return for the period.
Investor interest in the Growth Portfolio was especially strong, as
evidenced by its 68.6% rise in assets to $11.8 million.
o The International Portfolio, managed by Societe Generale Asset Management
Corp., registered an 11.12% total return for the six-month period and an
18.65% total return for the year. Its objective is long-term capital growth.
The average total return for international stock mutual funds tracked by
Lipper was 15.47% for the year. Assets in the International Portfolio
climbed to more than $15.0 million, a 26% increase over the 12 months.
o The Global Contrarian Portfolio, also managed by Societe Generale Asset
Management Corp., had a total return of 9.53% for the six-months and ended
the year with a total return of 17.84%. Its objective is long-term growth of
capital. Global stock mutual funds tracked by Lipper averaged 18.70%. Assets
of the Global Contrarian Portfolio grew by 46.8% for the year, to $5.7
million.
o The Income & Growth Portfolio, managed by Ohio National Investment, Inc.,
attained a total return of 6.75% for the six months and 14.50% for the year.
Its objective is two-fold: to provide moderate income with the potential for
increasing income over time; and to provide growth of capital. Balanced
portfolio mutual funds tracked by Lipper as a group had an average total
return of 15.52% for the year. Assets in the Income & Growth surpassed $10.8
million, increasing by 39.6% for the 12 months.
o The Income Portfolio, managed by Ohio National Investments, Inc., recorded a
total return of -0.39% for the six months and 4.61% for the year. Its
objective is high current income. Preservation of capital
2
<PAGE> 4
is a secondary objective. Fixed income mutual funds tracked by Lipper on
average recorded a 5.10% total return for the year. Assets in the Income
Portfolio declined 2.2% over the period, to $6.98 million.
o The Tax-Free Income Portfolio, managed by Ohio National Investments, Inc.,
produced a total return of -0.71% for the six months and 6.59% for the
one-year period, which would be equivalent to a taxable return of 9.57% for
an investor in the 31% federal income tax bracket. Its objective is to
provide high current income exempt from federal income taxes. General
municipal debt mutual funds tracked by Lipper had an average total return of
6.14% for the 12 months. Over the one-year period assets of the Tax-Free
Income Portfolio grew to $6.3 million, an 11.1% increase.
o Dividends on the Money Market Portfolio, managed by Ohio National
Investments, Inc., generated a 2.46% yield for the six-month period and a
5.18% yield for the year. The portfolio seeks to provide current income
consistent with preservation of capital and liquidity. The average yield
reported for money market mutual funds by IBC's Money Fund Report was 5.06%
for the same 12 months. Assets in the Money Market Portfolio climbed by some
11.7%, to $15.8 million.
LOOKING AHEAD
Higher interest rates, lower corporate earnings and reduced inflows into the
investment markets paint an uncertain picture for the coming months. Regardless
of the conditions, our fundamental investment principles - careful selection and
constant professional management - remain the same. We are gratified by the
confidence you have displayed in making ONE Fund part of your investment
program. Fund management remains committed to providing investment options that
will meet your investment objectives. Please contact your investment
representative if you have questions about ONE Fund or your account. He or she
stands ready to provide the information you need to make the investments that
are right for you.
/s/ Donald J. Zimmerman
Donald J. Zimmerman
President, ONE Fund, Inc.
Directors and Officers of ONE Fund, Inc.
<TABLE>
<CAPTION>
<S> <C>
Donald J. Zimmerman, President and Director Michael A. Boedeker, Vice President
Ronald L. Benedict, Secretary and Director David G. McClure, Vice President
George E. Castrucci, Director Stephen T. Williams, Vice President
Maurice H. Kirby, Director Dennis R. Taney, Treasurer
George M. Vredeveld, Director Amy M. Starkey, Assistant Secretary
Joseph P. Brom, Vice President
</TABLE>
This report may be used as sales literature only when accompanied or preceded by
an effective prospectus of ONE Fund, Inc. which relates sales expense and other
pertinent information.
3
<PAGE> 5
Shareholders' Meeting
A meeting of the shareholders was held on March 28, 1996 for the purpose of
approving a new Investment Advisory Agreement with ONI, new sub-advisory
agreement with SGAM, election of Directors and approval of KPMG Peat Marwick LLP
as Independent Certified Public Accountants for the Fund. Prior to approving the
agreements and resolutions, a solicitation of proxies of the shareholders of the
eight portfolios was conducted and the results were as follows:
<TABLE>
<CAPTION>
INVESTMENT ADVISORY AGREEMENT
-----------------------------
Money Market % Tax-Free % Income %
------------ --- -------- --- ------ ---
<S> <C> <C> <C> <C> <C> <C>
For 14,849,100 99.9 539,858 99.7 572,736 99.8
Against 0 0.0 0 0.0 0 0.0
Abstain 7,447 0.1 1,826 0.3 1,286 0.2
---------- ----- ------- ----- ------- -----
Total 14,856,547 100.0 541,684 100.0 574,022 100.0
========== ===== ======= ===== ======= =====
Income & Growth % Growth % Small Cap %
--------------- --- ------ --- --------- ---
For 505,105 99.4 404,791 97.3 254,977 99.7
Against 0 0.0 0 0.0 0 0.0
Abstain 3,080 0.6 11,275 2.7 741 0.3
--------- ----- ------- ----- ------- -----
Total 508,185 100.0 416,066 100.0 255,718 100.0
========= ===== ======= ===== ======= =====
International % Global Contrarian %
------------- --- ----------------- ---
For 423,061 89.3 335,875 98.6
Against 1,255 0.3 0 0.0
Abstain 49,449 10.4 4,628 1.4
--------- ----- ------- ------
Total 473,765 100.0 340,503 100.0
========= ===== ======= ======
SERVICE AGREEMENT
-----------------
Money Market % Tax-Free % Income %
------------ --- -------- --- ------ ---
For 14,849,100 99.9 539,858 99.7 572,736 99.8
Against 0 0.0 0 0.0 0 0.0
Abstain 7,447 0.1 1,826 0.3 1,286 0.2
---------- ----- ------- ----- ------- -----
Total 14,856,547 100.0 541,684 100.0 574,022 100.0
========== ===== ======= ===== ======= =====
Income & Growth % Growth % Small Cap %
--------------- --- ------ --- --------- ---
For 505,105 99.4 404,791 97.3 254,977 99.7
Against 0 0.0 0 0.0 0 0.0
Abstain 3,080 0.6 11,275 2.7 741 0.3
------- ----- ------- ----- ------- -----
Total 508,185 100.0 416,066 100.0 255,718 100.0
======= ===== ======= ===== ======= =====
International % Global %
------------- --- ------ ---
For 423,061 89.3 335,875 98.6
Against 1,255 0.3 0 0.0
Abstain 49,449 10.4 4,628 1.4
------- ----- ------- -----
Total 473,765 100.0 340,503 100.0
======= ===== ======= =====
SUB-ADVISORY AGREEMENT
----------------------
International % Global %
------------- --- ------ ---
For 423,173 89.3 335,875 98.6
Against 1,407 0.3 0 0.0
Abstain 49,185 10.4 4,628 1.4
------- ----- ------- -----
473,765 100.0 340,503 100.0
======= ===== ======= =====
ELECTION OF DIRECTORS
---------------------
Ronald L. Benedict George E. Castrucci Maurice H. Kirby, Jr. George M. Vredeveld Donald J. Zimmerman
------------------ ------------------- --------------------- ------------------- -------------------
For 17,761,409 17,760,426 17,760,274 17,761,764 17,760,358
Against 467 1,450 1,602 112 1,518
Abstain 50,518 50,518 50,518 50,518 50,518
---------- ---------- ---------- ---------- ----------
Total 17,812,394 17,812,394 17,812,394 17,812,394 17,812,394
========== ========== ========== ========== ==========
APPROVAL OF KPMG PEAT MARWICK LLP
---------------------------------
For 17,751,130
Against 6,212
Abstain 49,093
----------
Total 17,806,435
==========
</TABLE>
4
<PAGE> 6
MEET YOUR ONE FUND MANAGERS
[picture of Joseph P. Brom, CFA]
JOSEPH P. BROM, CFA
Senior Vice President and Chief Investment Officer,
The Ohio National Life Insurance Company
President, Ohio National Investments, Inc.
President, O.N. Investment Management Company
Joseph Brom brings more than 35 years of investment experience to bear
on behalf of Ohio National's mutual fund shareholders. He has overseen the
company's investment operations and fund management since joining it as a vice
president and portfolio manager in 1975. He came to Ohio National with 15 years
of securities management, investment banking and venture capital experience.
Positions he has previously served in include assistant vice president and
assistant treasurer with Bankers Life Insurance (now Ameritas) and vice
president-treasurer of First Dallas Capital Corporation. Mr. Brom is responsible
for evaluating economic conditions and investment opportunities relative to Ohio
National's objectives and strategies.
Mr. Brom holds a juris doctor degree from the University of Wisconsin, as
well as a bachelor's degree in Economics and Finance from the same institution.
He is a Chartered Financial Analyst and a member of the Association for
Investment Management and Research, the National Association of Business
Economists and the Financial Analysts Federation.
MICHAEL A. BOEDEKER, CFA
Vice President, Fixed Income Securities,
The Ohio National Life Insurance Company
Vice President, Ohio National Investments, Inc.
Vice President, O.N. Investment Management Company
[picture of Michael A. Boedeker, CFA]
Michael Boedeker, CFA has over 26 years of fixed income securities and
mutual fund management experience. He joined Ohio National in 1989 as vice
president, fixed income securities. Prior to that, he served as senior vice
president, fixed income securities, at Lincoln National Life, and as senior vice
president and chief investment officer for Mutual Security Life. He began his
career as a credit analyst for American Fletcher National. He has managed the
ONE Fund Income, Tax-Free Income and Money Market Portfolios since their
inceptions in 1992, 1994 and 1992, respectively.
Mr. Boedeker holds a bachelor's degree and a master of business
administration degree in Finance from Indiana University. He is a Chartered
Financial Analyst and a member of the Association for Investment Management and
Research and the Cincinnati Society of Financial Analysts.
5
<PAGE> 7
STEPHEN T. WILLIAMS
Senior Investment Officer and Portfolio Manager,
The Ohio National Life Insurance Company
Vice President, Ohio National Investments, Inc.
Vice President, O.N. Investment Management Company
[picture of Stephen T. Williams]
Stephen Williams possesses more than 18 years of investment analysis and
management experience. He joined Ohio National in 1977 and was named a portfolio
manager in 1985. Prior to advancing to his current position in 1995 he served as
director of securities since 1992. Before coming to Ohio National he held
various management positions with Citizens Federal, a midwestern-based banking
and financial institution. He has managed the ONE Fund Growth, Small Cap and
Income & Growth Portfolios since their inceptions in 1992, 1994 and 1992,
respectively.
Mr. Williams is a graduate of the University of Cincinnati. He holds
a bachelor of business administration degree in Finance.
[picture of Jean-Marie Eveillard]
JEAN-MARIE EVEILLARD
President, Portfolio Manager, Director,
Societe Generale Asset Management Corp.
Jean-Marie Eveillard has more than 32 years of investment experience,
all of them with Societe Generale, where he began working as an analyst in 1963.
He first came to the United States in 1968, and became a securities analyst with
SoGen International Fund in the early 1970s. Mr. Eveillard managed a global fund
in Paris in the mid-1970s and returned to the United States to manage the SoGen
International Fund in 1979. He was elected president of the fund in 1984. He
also manages SoGen's Overseas Fund, Gold Fund and Money Market Fund. He has
managed the ONE Fund International and Global Contrarian Portfolios since their
inceptions in 1993 and 1994, respectively.
Mr. Eveillard holds a baccalaureate degree from the Lycee Descartes in
Tours, France and a graduate degree in Economic Studies from the Ecole des
Hautes Etudes Commerciales in Paris.
<PAGE> 8
ONE FUND, INC. June 30, 1996
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
PORTFOLIO
------------------------------------------------------------------------
MONEY TAX-FREE INCOME
MARKET INCOME INCOME & GROWTH GROWTH
----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in securities at market
value (note 1) ............................. $15,827,578 $ 6,166,452 $ 6,828,676 $10,872,933 $ 11,744,734
Cash in bank ................................. 52,331 50,007 78,381 44,819 59,346
Unrealized gain on forward currency
contracts (note 5) ......................... 0 0 0 0 0
Receivable for fund shares sold .............. 0 0 0 0 0
Dividends and accrued interest receivable .... 0 107,298 127,556 49,029 8,995
Deferred organizational expenses (note 1) .... 3,926 1,735 3,926 3,926 3,895
Other ........................................ 852 116 88 1,848 128
----------- ----------- ----------- ----------- ------------
Total assets ............................... 15,884,687 6,325,608 7,038,627 10,972,555 11,817,098
----------- ----------- ----------- ----------- ------------
Liabilities:
Unrealized loss on forward currency
contracts (note 5) ......................... 0 0 0 0 0
Payable for securities purchased ............. 0 0 0 100,800 0
Payable for fund shares redeemed ............. 0 0 0 0 0
Payable for investment management
services (note 3) .......................... 0 4,632 4,348 6,602 7,222
Accrued 12b-1 fees (note 6) .................. 5,784 3,709 4,127 6,363 6,977
Other accrued expenses ....................... 10,943 9,296 13,080 8,500 12,852
Dividends Payable ............................ 58,077 24,343 34,499 81,087 32,193
----------- ----------- ----------- ----------- ------------
Total liabilities .......................... 74,804 41,980 56,054 203,352 59,244
----------- ----------- ----------- ----------- ------------
NET ASSETS AT MARKET VALUE ...................... $15,809,883 $ 6,283,628 $ 6,982,573 $10,769,203 $ 11,757,854
=========== =========== =========== =========== ============
Net assets consist of:
Par value, $.001 per share ................... $ 15,810 $ 582 $ 728 $ 842 $ 760
Paid-in capital in excess of par value ....... 15,794,073 5,880,875 7,084,483 8,718,708 8,832,453
Accumulated undistributed net realized
gain (loss) on investments ................. 0 (7,298) (110,897) 233,926 402,972
Net unrealized appreciation (depreciation) on:
Investments ................................ 0 409,469 8,259 1,813,724 2,521,894
Foreign currency related transactions ...... 0 0 0 0 0
Forward currency contracts ................. 0 0 0 0 0
Undistributed (overdistributed) net
investment income .......................... 0 0 0 2,003 (225)
----------- ----------- ----------- ----------- ------------
NET ASSETS AT MARKET VALUE ...................... $15,809,883 $ 6,283,628 $ 6,982,573 $10,769,203 $ 11,757,854
=========== =========== =========== =========== ============
SHARES OUTSTANDING .............................. 15,809,883 582,283 728,240 842,340 759,837
----------- ----------- ----------- ----------- ------------
NET ASSET VALUE PER SHARE ....................... $ 1.00 $ 10.79 $ 9.59 $ 12.78 $ 15.47
=========== =========== =========== =========== ============
MAXIMUM OFFERING PRICE PER SHARE ................ $ 1.00 $ 11.12 $ 9.89 $ 13.45 $ 16.28
=========== =========== =========== =========== ============
PORTFOLIO
-------------------------------------------
SMALL GLOBAL
CAP INTERNATIONAL CONTRARIAN
----------- ----------- -----------
<S> <C> <C> <C>
Assets:
Investments in securities at market
value (note 1) ............................. $ 4,434,476 $15,003,155 $ 5,640,688
Cash in bank ................................. 46,913 55,230 10,318
Unrealized gain on forward currency
contracts (note 5) ......................... 0 196,091 33,546
Receivable for fund shares sold .............. 0 16,457 965
Dividends and accrued interest receivable .... 5,036 51,482 44,352
Deferred organizational expenses (note 1) .... 1,735 4,440 1,735
Other ........................................ 63 0 0
----------- ----------- -----------
Total assets ............................... 4,488,223 15,326,855 5,731,604
----------- ----------- -----------
Liabilities:
Unrealized loss on forward currency
contracts (note 5) ......................... 0 829 0
Payable for securities purchased ............. 0 83,780 0
Payable for fund shares redeemed ............. 0 16,000 0
Payable for investment management
services (note 3) .......................... 3,518 32,971 12,387
Accrued 12b-1 fees (note 6) .................. 2,288 9,159 3,441
Other accrued expenses ....................... 7,896 6,508 15,251
Dividends Payable ............................ 12,188 94,263 37,480
----------- ----------- -----------
Total liabilities .......................... 25,890 243,510 68,559
----------- ----------- -----------
NET ASSETS AT MARKET VALUE ...................... $ 4,462,333 $15,083,345 $ 5,663,045
=========== =========== ===========
Net assets consist of:
Par value, $.001 per share ................... $ 348 $ 1,042 $ 493
Paid-in capital in excess of par value ....... 3,600,524 12,709,293 4,998,591
Accumulated undistributed net realized
gain (loss) on investments ................. 359,646 214,217 156,242
Net unrealized appreciation (depreciation) on:
Investments ................................ 502,030 1,955,327 471,307
Foreign currency related transactions ...... 0 16 (58)
Forward currency contracts ................. 0 195,262 33,546
Undistributed (overdistributed) net
investment income .......................... (215) 8,188 2,924
----------- ----------- -----------
NET ASSETS AT MARKET VALUE ...................... $ 4,462,333 $15,083,345 $ 5,663,045
=========== =========== ===========
SHARES OUTSTANDING .............................. 347,962 1,042,150 493,235
----------- ----------- -----------
NET ASSET VALUE PER SHARE ....................... $ 12.82 $ 14.47 $ 11.48
=========== =========== ===========
MAXIMUM OFFERING PRICE PER SHARE ................ $ 13.49 $ 15.23 $ 12.08
=========== =========== ===========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
7
<PAGE> 9
ONE FUND, INC. Year Ended June 30, 1996
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
PORTFOLIO
--------------------------------------------------------------------------------
MONEY TAX-FREE INCOME SMALL
MARKET INCOME INCOME & GROWTH GROWTH CAP
--------- --------- --------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest ................................ $ 917,989 $ 373,032 $ 484,744 $ 204,015 $ 70,706 $ 35,722
Dividends ............................... 0 0 53,510 161,989 108,351 81,962
--------- --------- --------- ----------- ----------- ---------
Total investment income ............... 917,989 373,032 538,254 366,004 179,057 117,684
--------- --------- --------- ----------- ----------- ---------
Expenses:
12b-1 fees (note 6) ..................... 24,520 15,225 18,095 22,949 23,795 9,332
Management fees (note 3) ................ 48,270 36,568 36,190 45,898 47,590 24,264
Custodian fees (note 3) ................. 29,424 10,982 13,029 16,523 17,133 6,719
Directors' fees (note 3) ................ 4,003 1,892 4,293 1,834 1,950 750
Professional fees ....................... 11,904 3,779 4,619 5,038 5,460 2,099
Other ................................... 18,394 6,574 8,109 8,825 9,483 3,627
Organizational expense (note 1) ......... 3,481 523 3,481 3,481 3,455 523
--------- --------- --------- ----------- ----------- ---------
Total expenses ........................ 139,996 75,543 87,816 104,548 108,866 47,314
Less expenses voluntarily reduced or
reimbursed (note 3) ................. (48,270) (18,284) (18,095) (22,949) (23,795) (12,132)
--------- --------- --------- ----------- ----------- ---------
Net expenses .......................... 91,726 57,259 69,721 81,599 85,071 35,182
--------- --------- --------- ----------- ----------- ---------
Net investment income ............... 826,263 315,773 468,533 284,405 93,986 82,502
--------- --------- --------- ----------- ----------- ---------
Realized and unrealized gain (loss)
on investments and foreign currency
Net realized gain (loss) from:
Investments ........................... 0 (7,298) (49,166) 285,463 586,710 385,689
Forward currency related transactions . 0 0 0 0 0 0
Net increase (decrease) in unrealized
appreciation (depreciation) on:
Investments ......................... 0 71,682 (89,116) 627,931 1,174,130 338,621
Foreign currency related transactions 0 0 0 0 0 0
--------- --------- --------- ----------- ----------- ---------
Net gain (loss) on investments .... 0 64,384 (138,282) 913,394 1,760,840 724,310
--------- --------- --------- ----------- ----------- ---------
Net increase in net assets
from operations ................ $ 826,263 $ 380,157 $ 330,251 $ 1,197,799 $ 1,854,826 $ 806,812
========= ========= ========= =========== =========== =========
PORTFOLIO
---------------------------
GLOBAL
INTERNATIONAL CONTRARIAN
------------- ----------
<S> <C> <C>
Investment income:
Interest ................................ $ 39,938 $ 63,707
Dividends ............................... 283,205(a) 107,079(b)
---------- ---------
Total investment income ............... 323,143 170,786
---------- ---------
Expenses:
12b-1 fees (note 6) ..................... 33,304 11,703
Management fees (note 3) ................ 119,892 42,132
Custodian fees (note 3) ................. 44,999 44,000
Directors' fees (note 3) ................ 2,850 900
Professional fees ....................... 7,980 3,214
Other ................................... 18,737 10,377
Organizational expense (note 1) ......... 2,328 523
---------- ---------
Total expenses ........................ 230,090 112,849
Less expenses voluntarily reduced or
reimbursed (note 3) ................. 0 (12,200)
---------- ---------
Net expenses .......................... 230,090 100,649
---------- ---------
Net investment income ............... 93,053 70,137
---------- ---------
Realized and unrealized gain (loss)
on investments and foreign currency
Net realized gain (loss) from:
Investments ........................... 547,563 184,706
Forward currency related transactions . 298,575 32,490
Net increase (decrease) in unrealized
appreciation (depreciation) on:
Investments ......................... 1,151,993 432,588
Foreign currency related transactions 193,633 33,319
---------- ---------
Net gain (loss) on investments .... 2,191,764 683,103
---------- ---------
Net increase in net assets
from operations ................ $2,284,817 $ 753,240
========== =========
<FN>
(a) Net of $23,745 foreign taxes withheld.
(b) Net of $5,232 foreign taxes withheld.
The accompanying notes are an integral part of these financial statements.
</TABLE>
8
<PAGE> 10
ONE FUND, INC. Years Ended June 30, 1996 and 1995
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PORTFOLIO
------------------------------------------------------------------
MONEY MARKET TAX FREE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6-30-96 6-30-95 6-30-96 6-30-95 (b)
-------------------------------- ------------------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income ...................... $ 826,263 $ 676,851 $ 315,773 $ 180,809
Realized gain (loss) on investments and
foreign currency related transactions ... 0 0 (7,298) 0
Unrealized gain (loss) on investments and
foreign currency related transactions ... 0 0 71,682 337,787
------------ ------------ ----------- -----------
Net increase in assets from
operations .......................... 826,263 676,851 380,157 518,596
------------ ------------ ----------- -----------
Dividends and distributions to shareholders:
Dividends paid from net investment income (826,263) (676,851) (315,773) (180,809)
Capital gains distribution .............. 0 0 0 0
------------ ------------ ----------- -----------
Total dividends and distributions ..... (826,263) (676,851) (315,773) (180,809)
------------ ------------ ----------- -----------
From capital share transactions (note 4):
Received from shares sold .................. 13,411,231 9,788,975 315,892 5,175,095
Received from dividends reinvested ......... 821,475 655,189 311,840 155,845
Paid for shares redeemed ................... (12,570,685) (8,595,276) (65,222) (11,993)
------------ ------------ ----------- -----------
Increase (decrease) in net assets derived
from capital share transactions ....... 1,662,021 1,848,888 562,510 5,318,947
------------ ------------ ----------- -----------
Increase (decrease) in net assets ... 1,662,021 1,848,888 626,894 5,656,734
Net Assets:
Beginning of period ........................ 14,147,862 12,298,974 5,656,734 0
------------ ------------ ----------- -----------
End of period (a) .......................... $ 15,809,883 $ 14,147,862 $ 6,283,628 $ 5,656,734
============ ============ =========== ===========
(a) Includes undistributed net investment
income of ............................... $ 0 $ 0 $ 0 $ 0
============= ============ =========== ===========
PORTFOLIO
-------------------------------------------------------
INCOME INCOME & GROWTH
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6-30-96 6-30-95 6-30-96 6-30-95
--------------------------- -------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income ...................... $ 468,533 $ 385,323 $ 284,405 $ 274,032
Realized gain (loss) on investments and
foreign currency related transactions ... (49,166) (61,593) 285,463 402,083
Unrealized gain (loss) on investments and
foreign currency related transactions ... (89,116) 374,895 627,931 655,646
----------- ----------- ------------ -----------
Net increase in assets from
operations .......................... 330,251 698,625 1,197,799 1,331,761
----------- ----------- ------------ -----------
Dividends and distrubutions to shareholders
Dividends paid from net investment income (468,533) (385,323) (282,680) (273,755)
Capital gains distribution .............. 0 0 (51,537) (402,083)
----------- ----------- ------------ -----------
Total dividends and distributions ..... (468,533) (385,323) (334,217) (675,838)
------------ ----------- ------------ -----------
From capital share transctions (note 4):
Received from shares sold .................. 779,610 2,020,251 2,570,771 743,255
Received from dividends reinvested ......... 431,894 369,674 423,830 606,182
Paid for shares redeemed ................... (1,233,852) (165,975) (804,922) (1,767,322)
----------- ----------- ------------ -----------
Increase (decrease) in net assets derived
from capital share transactions ....... (22,348) 2,223,950 2,189,679 (417,885)
----------- ----------- ------------ -----------
Increase (decrease) in net assets ... (160,630) 2,537,252 3,053,261 238,038
Net Assets:
Beginning of period ........................ 7,143,203 4,605,951 7,715,942 7,477,904
----------- ----------- ------------ -----------
End of period (a) .......................... $ 6,982,573 $ 7,143,203 $ 10,769,203 $ 7,715,942
=========== =========== ============ ===========
(a) Includes undistributed net investment
income of .............................. $ 0 $ 0 $ 2,003 $ 277
============ =========== ============ ===========
<FN>
(b) Commenced operations November 1, 1994
The accompanying notes are an integral part of these financial statements.
</TABLE>
9
<PAGE> 11
<TABLE>
ONE FUND, INC. Years Ended June 30, 1996 and 1995
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
PORTFOLIO
--------------------------------------------------------------------------------------------------
GROWTH SMALL CAP INTERNATIONAL GLOBAL CONTRARIAN
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6-30-96 6-30-95 6-30-96 6-30-95(b) 6-30-96 6-30-95 6-30-96 6-30-95(b)
---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income..... $93,986 $84,042 $82,502 $55,079 $93,053 $128,938 $70,137 $63,746
Realized gain on investments
and foreign currency
related transactions.... 586,710 425,561 385,689 9,797 846,138 881,819 217,196 43,112
Unrealized gain (loss) on
investments and foreign
currency related
transactions............ 1,174,130 701,680 338,621 163,409 1,345,626 (235,774) 465,907 38,889
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
Net increase in assets
from operations....... 1,854,826 1,211,283 806,812 228,285 2,284,817 774,983 753,240 145,747
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
Dividends and distributions
to shareholders:
Dividends paid from net
investment income...... (94,036) (84,216) (82,824) (54,972) (383,429) (128,598) (99,748) (63,598)
Capital gains
distribution........... (185,263) (424,275) (26,043) (9,797) (347,520) (868,069) (28,591) (43,088)
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
Total dividends and
distributions........ (279,299) (508,491) (108,867) (64,769) (730,949) (996,667) (128,339) (106,686)
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
From capital share
transactions (note 4):
Received from shares
sold................... 3,491,377 1,480,257 1,141,411 2,800,024 3,712,934 6,323,833 1,281,031 3,771,274
Received from dividends
reinvested............. 530,826 226,740 111,230 47,418 612,162 955,687 90,643 106,380
Paid for shares
redeemed............... (811,763) (783,929) (404,162) (95,049) (2,767,518) (5,489,358) (190,480) (59,765)
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
Increase in net assets
derived from capital
share transactions... 3,210,440 923,068 848,479 2,752,393 1,557,578 1,790,162 1,181,194 3,817,889
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
Increase in net
assets............... 4,785,967 1,625,860 1,546,424 2,915,909 3,111,446 1,568,478 1,806,095 3,856,950
Net Assets:
Beginning of period...... 6,971,887 5,346,027 2,915,909 0 11,971,899 10,403,421 3,856,950 0
----------- --------- ---------- ---------- ----------- ----------- ---------- ----------
End of period (a)........ $11,757,854 $6,971,887 $4,462,333 $2,915,909 $15,083,345 $11,971,899 $5,663,045 $3,856,950
=========== ========== ========== ========== =========== =========== ========== ==========
(a) Includes undistributed
(overdistributed) net
investment income of... ($225) ($174) ($215) $107 $8,188 ($11) $2,924 $45
=========== ========== ========== ========== =========== =========== ========== ==========
(b) Commenced operations
November 1, 1994.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 12
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS MONEY MARKET PORTFOLIO
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE AND RELATED (9.9%)
$680,000 Ford Motor Credit Corp.
5.290% 07-30-96 $677,255
100,000 Ford Motor Credit Corp.
5.380% 07-30-96 99,414
790,000 General Motors Acceptance Corp.
5.320% 09-03-96 782,528
--------------
1,559,197
--------------
CONSUMER DURABLES (3.2%)
500,000 Glaxo Wellcome plc
5.240% 07-19-96 498,690
--------------
EDUCATION (3.3%)
525,000 University of Chicago
5.400% 09-10-96 519,409
--------------
ELECTRONIC EQUIPMENT (3.2%)
500,000 G.E. Capital
5.270% 07-22-96 498,463
--------------
ENTERTAINMENT AND LEISURE (4.4%)
700,000 Walt Disney Co.
5.290% 07-10-96 699,074
--------------
FINANCE (19.1%)
795,000 American Express Credit Corp.
5.270% 08-22-96 788,948
800,000 Ameritech Capital Fund
5.280% 07-02-96 799,883
700,000 Heller Financial Inc.
5.350% 08-05-96 696,359
500,000 IBM Corp.
5.370% 08-19-96 496,345
250,000 Prudential Funding Corp.
5.380% 08-14-96 248,356
--------------
3,029,891
--------------
FOOD AND RELATED (5.0%)
790,000 Quaker Oats Co.
5.500% 07-02-96 789,879
--------------
FORESTRY AND PAPER PRODUCTS (2.5%)
400,000 Temple Inland Inc.
5.370% 07-30-96 398,270
--------------
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- ------------------------------------------------------------
INDUSTRIAL (7.7%)
$425,000 Dupont (EI) de Nemours
5.270% 07-12-96 $424,316
800,000 Echlin Inc.
5.330% 07-08-96 799,171
--------------
1,223,487
--------------
INSURANCE (2.7%)
425,000 Liberty Mutual Capital
5.400% 08-27-96 421,366
--------------
MACHINERY AND EQUIPMENT (13.2%)
800,000 Deere and Company
5.290% 07-11-96 798,824
500,000 Stanley Works
5.370% 08-23-96 496,047
800,000 Stanley Works
5.300% 07-09-96 799,058
--------------
2,093,929
--------------
RETAIL (16.1%)
780,000 Hasbro Inc.
5.230% 08-16-96 774,787
600,000 Sears Roebuck Acceptance Corp.
5.290% 08-26-96 594,961
100,000 Sears Roebuck Acceptance Corp.
5.310% 08-26-96 99,276
575,000 Sherwin Williams
5.360% 08-12-96 571,404
500,000 Wal-Mart Stores Inc.
5.280% 07-05-96 499,707
--------------
2,540,135
--------------
TRANSPORTATION (4.4%)
700,000 Consolidated Rail Corp.
5.360% 07-19-96 698,124
--------------
UTILITIES (5.4%)
435,000 AT&T Corp.
5.230% 08-08-96 432,599
426,000 Alabama Power Co.
5.270% 07-16-96 425,065
--------------
857,664
--------------
TOTAL HOLDINGS
(COST $15,827,578) (a) $15,827,578
==============
<FN>
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS TAX-FREE PORTFOLIO
FACE MARKET
AMOUNT MUNICIPAL BONDS VALUE
- ----------------------------------------------------------------
<S> <C> <C>
GENERAL OBLIGATION BONDS (15.0%)
$200,000 Charleston County S. Carolina
7.250% 02-01-02 $207,870
100,000 Clairborne County Mississippi
7.300% 05-01-25 103,000
150,000 Commonwealth of Puerto Rico
5.500% 07-01-17 142,500
250,000 State of Nevada
6.600% 12-01-13 268,125
250,000 State of Washington
5.000% 05-01-17 223,438
-------------
944,933
-------------
INSURED BONDS (17.3%)
250,000 Atlanta RTA
6.800% 07-01-14 270,938
250,000 Mataroda Texas
6.700% 03-01-27 267,500
250,000 New York State Med Care
6.750% 08-15-14 269,375
250,000 Pennsylvania Intergovernment Corp.
6.750% 06-15-21 279,375
-------------
1,087,188
-------------
AIRPORT REVENUE (3.6%)
250,000 Chicago Illinois O'Hare Airport
5.000% 01-01-13 226,250
-------------
HOSPITAL REVENUE (7.2%)
250,000 Massachusetts State Hospital
6.200% 10-01-16 252,812
200,000 Wisconsin Health and Education
6.125% 11-15-15 199,750
-------------
452,562
-------------
HOUSING REVENUE (2.3%)
150,000 Alaska Housing
5.875% 12-01-24 144,563
-------------
POLLUTION CONTROL &
INDUSTRIAL REVENUE (15.4%)
250,000 Lawrenceburg, Indiana
5.900% 11-01-19 234,375
250,000 Richland County, S. Carolina
6.550% 11-01-20 261,875
200,000 San Diego, California
7.625% 07-01-21 206,894
250,000 West Feliciana, Louisiana
8.000% 12-01-24 265,625
-------------
968,769
-------------
FACE MARKET
AMOUNT MUNICIPAL BONDS VALUE
-----------------------------------------------------------------
POWER REVENUE (18.8%)
$250,000 Jacksonville Florida Municipal Electric
5.500% 10-01-14 $240,937
250,000 Mobile Alabama
6.950% 01-01-20 257,187
250,000 North Carolina Eastern Power
6.000% 01-01-22 244,063
250,000 Salt River Arizona Project
5.000% 01-01-13 230,000
200,000 Southern California Public Power
6.000% 07-01-18 210,000
--------------
1,182,187
--------------
WATER REVENUE (3.8%)
250,000 Metropolitan Water District of
S. California
5.500% 07-01-13 239,375
--------------
ADVANCE REFUNDED (4.4%)
250,000 Clark County, Nevada School District
7.000% 06-01-09 275,625
--------------
CONVENTION COMPLEX &
HOSPITALITY FACILITIES (3.2%)
200,000 Metropolitan Pier
6.250% 07-01-17 195,000
--------------
TOTAL MUNICIPAL BONDS (91.0%)
(COST $5,306,983) $5,716,452
--------------
FACE MARKET
AMOUNT REPURCHASE AGREEMENTS VALUE
- ----------------------------------------------------------------
BANKING (7.2%)
$450,000 Provident Bank 4.700% due 07-01-96
repurchase price $450,235 $450,000
collateralized by U.S. --------------
Treasury Notes, due
08-15-96 (Cost $450,000)
TOTAL REPURCHASE AGREEMENTS
(7.2%) (COST $450,000) $450,000
--------------
TOTAL HOLDINGS
(COST $5,756,983) (a) $6,166,452
==============
<FN>
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
</TABLE>
12
<PAGE> 14
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS INCOME PORTFOLIO
FACE MARKET
AMOUNT LONG-TERM NOTES VALUE
- -------------------------------------------------------------
<S> <C> <C>
GOVERNMENT (25.9%)
$1,000,000 U.S. Treasury Note
6.375% 08-15-02 $991,540
800,000 U.S. Treasury Note
7.375% 11-15-97 814,504
-------------
1,806,044
-------------
COMPUTER AND RELATED (3.6%)
250,000 IBM Corp.
7.250% 11-01-02 254,062
-------------
CONSUMER GOODS (3.4%)
250,000 RJR Nabisco, Inc.
7.625% 09-15-03 238,125
-------------
FORESTRY AND PAPER PRODUCTS (3.6%)
250,000 ITT Rayonier, Inc.
7.500% 10-15-02 253,437
-------------
HOTEL/LODGING (2.9%)
200,000 Marriott International
7.875% 04-15-05 203,500
-------------
MEDICAL AND RELATED (6.6%)
250,000 Bergen Brunswig Corp.
7.375% 01-15-03 252,500
200,000 Manor Care, Inc.
9.500% 11-15-02 211,750
-------------
464,250
-------------
OIL, ENERGY AND NATURAL GAS (15.0%)
250,000 Maxus Energy
9.875% 10-15-02 248,438
200,000 PDV America, Inc.
7.875% 08-01-03 192,500
262,801 Puget Power
6.450% 04-11-05 258,257
100,000 Seagull Energy
7.875% 08-01-03 94,125
250,000 Tenneco Inc.
7.875% 10-01-02 257,188
-------------
1,050,508
-------------
REAL ESTATE (2.8%)
200,000 Avalon Properties Inc.
7.375% 09-15-02 195,250
-------------
RETAIL (1.4%)
100,000 Genesco, Inc.
10.375% 02-01-03 97,875
-------------
FACE MARKET
AMOUNT LONG-TERM NOTES VALUE
---------------------------------------------------------------
TEXTILES AND RELATED (3.7%)
$250,000 Fruit of the Loom Corp.
7.875% 10-15-99 $255,312
--------------
TRANSPORTATION (3.4%)
250,000 Illinois Central Gulf Railroad
6.750% 05-15-03 240,312
--------------
UTILITIES (11.3%)
250,000 El Paso Electric Co.
8.900% 02-01-06 247,812
250,000 Mississippi Power and Light
8.800% 04-01-05 255,938
300,000 Texas Utilities Electric
7.480% 01-01-17 283,500
--------------
787,250
--------------
MISCELLANEOUS (4.2%)
300,000 ITT Destinations Inc.
6.750% 11-15-05 285,751
--------------
TOTAL LONG-TERM NOTES (87.8%)
(COST $6,137,917) $6,131,676
--------------
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- ---------------------------------------------------------------
AUTOMOTIVE AND RELATED (2.1%)
$145,000 General Motors
5.250% 07-01-96 $145,000
--------------
TOTAL SHORT-TERM NOTES (2.1%)
(COST $145,000) $145,000
--------------
MARKET
SHARES PREFERRED STOCK VALUE
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT (3.0%)
8,000 GTE Delaware, 8.750% Series B $209,000
--------------
FINANCE (2.5%)
7,000 Connecticut Light, Power & Capital 172,375
9.300% Series A --------------
OIL, ENERGY AND NATURAL GAS (2.4%)
6,500 Phillips Gas Co., 9.320%, Series A 170,625
--------------
TOTAL PREFERRED STOCK (7.9%)
(COST $537,500) $552,000
--------------
TOTAL HOLDINGS
(COST $6,820,417) (a) $6,828,676
==============
<FN>
(a) Also represents cost for Federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
</TABLE>
13
<PAGE> 15
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS INCOME AND GROWTH PORTFOLIO
FACE MARKET
AMOUNT LONG-TERM NOTES VALUE
- -----------------------------------------------------------------
<S> <C> <C>
COMPUTER AND RELATED (2.4%)
$250,000 IBM Corp.
7.250% 11-01-02 $254,063
--------------
FORESTRY AND PAPER PRODUCTS (2.4%)
250,000 ITT Rayonier, Inc.
7.500% 10-15-02 253,438
--------------
OIL, ENERGY AND NATURAL GAS (9.7%)
250,000 Maxus Energy
9.875% 10-15-02 248,437
300,000 PDV America, Inc.
7.875% 08-01-03 288,750
250,000 Tenneco, Inc.
7.875% 10-01-02 257,187
250,000 Union Texas Petroleum
8.250% 11-15-99 256,562
--------------
1,050,936
--------------
UTILITIES (1.9%)
200,000 Mississippi Power and Light
8.800% 04-01-05 204,750
--------------
TOTAL LONG-TERM NOTES (16.4%)
(COST $1,743,353) $1,763,187
--------------
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -----------------------------------------------------------------
AUTOMOTIVE AND RELATED (2.2%)
$225,000 Ford Motor Credit Corp.
5.400% 07-09-96 $224,730
--------------
FINANCE (9.4%)
416,000 American Express Credit Corp.
5.320% 07-02-96 415,938
350,000 Associates Corp.
5.200% 07-03-96 349,896
250,000 Household Finance Corp.
5.370% 07-08-96 249,739
--------------
1,015,573
--------------
OIL, ENERGY AND GAS (2.0%)
220,000 Chevron Oil
5.330% 07-05-96 219,870
--------------
TOTAL SHORT-TERM NOTES (13.6%)
(COST $1,460,173) $1,460,173
--------------
MARKET
SHARES COMMON STOCK VALUE
- -----------------------------------------------------------------
AEROSPACE (2.7%)
5,000 Allied Signal, Inc. $285,625
--------------
AUTOMOTIVE AND RELATED (4.7%)
1,650 Chrysler Corp. 102,300
8,000 * Custom Chrome Inc. 215,000
4,000 Magna International, Inc. 184,000
--------------
501,300
--------------
MARKET
SHARES COMMON STOCK VALUE
-------------------------------------------------------------
BANKING (3.1%)
5,500 Community First Bankshares $129,250
10,000 First Colorado Bancorp 132,500
2,500 Susquehanna Bancshares 66,875
--------------
328,625
--------------
BUSINESS SERVICES (7.4%)
2,500 First Data Corp. 199,063
3,500 Manpower Inc. 137,375
3,000 Reynolds and Reynolds 159,750
7,000 * Verifone, Inc. 295,750
--------------
791,938
--------------
CHEMICALS (2.3%)
5,000 Learonal Inc. 125,000
3,000 OM Group Inc. 117,750
--------------
242,750
--------------
COMMUNICATIONS (0.6%)
6,500 * American Portable Telecom 69,875
--------------
COMPUTER AND RELATED (8.7%)
2,000 Hewlett Packard Co. 199,250
3,000 Intel Corp. 220,312
10,000 MacNeal-Schwendler Corp. 75,000
1,000 * Microsoft Corp. 120,125
5,000 * Novell Inc. 69,375
2,750 * Teradyne Inc. 47,437
4,000 Texas Instruments, Inc. 199,500
--------------
930,999
--------------
CONSUMER PRODUCTS (2.6%)
3,000 Panamerican Beverages Inc. 134,250
2,000 Stanhome, Inc. 53,000
7,000 Versa Technologies 94,500
--------------
281,750
--------------
ELECTRICAL EQUIPMENT (1.4%)
3,000 Varian Associates, Inc. 155,250
--------------
ENTERTAINMENT AND LEISURE (1.7%)
5,000 Cedar Fair 186,875
--------------
FINANCE (3.9%)
15,000 Bando McGlocklin Capital 165,000
10,000 Hanson Trust, PLC 142,500
2,000 PHH Corp. 114,000
--------------
421,500
--------------
FOOD AND RELATED (0.8%)
3,000 H.J. Heinz Co. 91,125
--------------
INDUSTRIAL SERVICES (6.2%)
5,000 Minerals Technologies, Inc. 171,250
12,000 Regal Beloit Corp. 237,000
5,000 York International, Corp. 258,750
--------------
667,000
--------------
MEDICAL AND RELATED (3.6%)
2,500 Baxter International 118,125
5,000 Health Care Realty Trust 118,750
4,500 National Health Investors 147,375
--------------
384,250
--------------
(continued)
</TABLE>
14
<PAGE> 16
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS INCOME AND GROWTH PORTFOLIO (CONTINUED)
MARKET
SHARES COMMON STOCK VALUE
- --------------------------------------------------------------------
<S> <C> <C>
METALS AND MINING (1.4%)
8,000 Easco Inc. $66,000
6,000 Greenbrier Companies Inc. 83,250
-------
149,250
-------
OIL, ENERGY AND GAS (6.5%)
8,000 Camco International, Inc. 271,000
3,000 WD-40 Co. 141,000
8,000 Westcoast Energy, Inc. 120,000
3,500 Williams Cos., Inc. 173,250
-------
705,250
-------
REAL ESTATE (1.9%)
8,000 Commercial Net Lease Realty 111,000
4,000 First Industrial Realty Trust 94,000
-------
205,000
-------
RETAIL (0.9%)
4,800 National Propane Partners 100,800
-------
TEXTILES AND RELATED (1.2%)
8,000 Oxford Industries, Inc. 129,000
-------
TRANSPORTATION (3.9%)
3,723 Burlington Northern, Inc. 301,098
1,000 Conrail, Inc. 66,375
2,500 Consolidated Freightways Inc. 52,813
-------
420,286
-------
TOTAL COMMON STOCK (65.5%)
(COST $5,259,783) $7,048,448
---------
MARKET
SHARES PREFERRED STOCK VALUE
- --------------------------------------------------------------------
ELECTRICAL EQUIPMENT (2.1%)
12,000 Westinghouse Electric Co., red.,
cum., conv. $225,000
-------
OIL, ENERGY AND GAS (1.4%)
3,000 Howell Corp.
$3.50 Series A 147,000
-------
REAL ESTATE (0.6%)
2,500 Oasis Residential, Inc.,
9.000% Series A 63,750
-------
UTILITIES (1.5%)
6,300 Phillips Gas Co., 9.320% Series A 165,375
-------
TOTAL PREFERRED STOCK (5.6%)
(COST $595,900) $601,125
-------
TOTAL HOLDINGS
(COST $9,059,209) (a) $10,872,933
==========
<FN>
(a) Also represents cost for Federal income tax purposes.
* Non-income producing securities.
The accompanying notes are an integral part of these financial statements.
</TABLE>
15
<PAGE> 17
ONE FUND, INC.
June 30, 1996
SCHEDULE OF INVESTMENTS
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- -------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE AND RELATED (2.5%)
$300,000 Ford Motor Credit Corp.
5.400% 07-09-96 $299,640
---------
FINANCE (5.9%)
295,000 Associates Corp.
5.200% 07-03-96 294,912
400,000 Household Finance Corp.
5.370% 07-08-96 399,583
---------
694,495
---------
OIL, ENERGY AND NATURAL GAS (2.5%)
290,000 Chevron Oil
5.330% 07-05-96 289,828
---------
TOTAL SHORT-TERM NOTES (10.9%)
(COST $1,283,963) $1,283,963
----------
Market
SHARES COMMON STOCK VALUE
- -------------------------------------------------------------
AEROSPACE (4.1%)
4,500 Allied Signal, Inc. $257,063
4,000 Rockwell International Corp. 229,000
---------
486,063
---------
AUTOMOTIVE AND RELATED (6.6%)
5,500 Arvin Industries, Inc. 122,375
1,500 Chrysler Corp. 93,000
7,000 * Custom Chrome Inc. 188,125
5,000 Magna International, Inc. 230,000
7,000 Walbro Corp. 141,750
---------
775,250
---------
BANKING (4.6%)
3,000 Charter One Financial Inc. 104,625
5,000 Community First Bankshares 117,500
10,000 First Colorado Bancorp 132,500
11,025 Franklin National Bank 115,763
2,500 Susquehanna Bancshares 66,875
---------
537,263
---------
BUILDING AND CONSTRUCTION (2.3%)
8,500 Hardinge Inc. 269,875
---------
BUSINESS SERVICES (9.4%)
2,500 First Data Corp. 199,063
6,500 Manpower Inc. 255,125
4,250 * Mastec Inc. 107,312
3,000 Reynolds and Reynolds 159,750
7,000 * Verifone, Inc. 295,750
4,500 Wackenhut Corp. Class B 82,687
---------
1,099,687
---------
CHEMICALS (1.2%)
11,000 * Canisco Resources Inc. 27,500
3,000 OM Group Inc. 117,750
---------
145,250
---------
CONSUMER GOODS (2.4%)
9,000 * Globe Business Resources 90,000
3,000 Panamerican Beverages Inc. 134,250
2,000 Stanhome Inc. 53,000
---------
277,250
---------
COMMUNICATIONS (5.1%)
6,500 * American Portable Telecom $69,875
7,000 * Atlantic Tele-network Inc. 168,000
7,000 * General Cable PLC 107,625
6,000 * Granite Broadcasting, Corp. 77,625
6,500 * Xpedite Systems Inc. 173,875
---------
597,000
---------
COMPUTER AND RELATED (14.5%)
6,000 * American Business Info. 109,500
9,000 * Cisco Systems Inc. 509,625
5,000 * Computron Software Inc. 24,375
9,000 * Continental Circuits Corp. 105,750
2,000 Hewlett Packard Co. 199,250
2,000 Intel Corp. 146,875
10,000 MacNeal-Schwendler Corp. 75,000
10,000 * Medar Inc. 103,750
1,000 * Microsoft Corp. 120,125
5,000 * Novell Inc. 69,375
2,750 * Teradyne Inc. 47,437
4,000 Texas Instruments, Inc. 199,500
---------
1,710,562
---------
DURABLE GOODS (0.8%)
5,000 * Zebra Technology Corp. 88,750
---------
ELECTRICAL EQUIPMENT (3.9%)
5,000 * Analog Devices, Inc. 127,500
4,500 BMC Industries, Inc. 129,375
4,000 Varian Associates, Inc. 207,000
---------
463,875
---------
ENTERTAINMENT AND LEISURE (1.6%)
5,000 Cedar Fair 186,875
---------
FINANCE (3.1%)
4,250 * Olympic Financial Ltd. 97,750
2,000 PHH Corp. 114,000
7,500 SEI Corp. 158,438
---------
370,188
---------
FOOD AND RELATED (1.0%)
10,000 * Buffets, Inc. 122,500
---------
INDUSTRIAL SERVICES (4.2%)
4,500 Minerals Technologies, Inc. 154,125
8,000 Regal Beloit Corp. 158,000
3,500 York International Corp. 181,125
---------
493,250
---------
INSURANCE (0.9%)
1,900 St. Paul Cos. 101,650
---------
MACHINERY (2.2%)
5,000 * Bridgeport Machines Inc. 82,500
2,900 Kysor Industrial Corp. 70,325
3,000 Trinity Industries, Inc. 102,000
---------
254,825
---------
(continued)
</TABLE>
16
<PAGE> 18
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS GROWTH PORTFOLIO (CONTINUED)
MARKET
SHARES COMMON STOCK VALUE
- ------------------------------------------------------------------
<S> <C> <C>
MEDICAL AND RELATED (5.8%)
3,500 Baxter International 165,375
5,500 * Cephalon Inc. 108,625
4,400 Columbia HCA Healthcare 234,850
3,000 * Foundation Health Corp. 107,625
2,000 * Humana Inc. 35,750
1,000 * Quorum Health Group Inc. 26,375
--------------
678,600
--------------
METAL FABRICATING (1.7%)
10,000 Amcast Industrial Corp. 202,500
--------------
METALS AND MINING (1.2%)
7,500 Easco Inc. 61,875
6,000 Greenbrier Companies Inc. 83,250
--------------
145,125
--------------
OIL, ENERGY AND NATURAL GAS (5.3%)
5,000 * Cairn Energy USA Inc. 71,875
6,000 Camco International, Inc. 203,250
7,000 * Louis Dreyfus Natural Gas 105,000
8,000 Santa Fe Energy Resources 95,000
3,000 Williams Cos., Inc. 148,500
--------------
623,625
--------------
RETAIL (1.5%)
10,000 Family Dollar Stores 173,750
--------------
TEXTILES AND RELATED (1.1%)
8,000 Oxford Industries, Inc. 129,000
--------------
TRANSPORTATION (2.1%)
1,595 Burlington Northern Inc. 128,996
1,000 Conrail, Inc. 66,375
2,500 Consolidated Freightways Inc. 52,812
--------------
248,183
--------------
TOTAL COMMON STOCK (86.6%)
(COST $7,657,027) $10,180,896
--------------
MARKET
SHARES PREFERRED STOCK VALUE
- ------------------------------------------------------------------
ELECTRICAL EQUIPMENT (1.3%)
8,000 Westinghouse Electric Co., red.,
cum., conv. $150,000
--------------
OIL, ENERGY AND NATURAL GAS (0.8%)
2,000 Howell Corp.
$3.50 Series A 98,000
--------------
REAL ESTATE (0.3%)
1,250 Oasis Residential Inc., 9.000%
Series A 31,875
--------------
TOTAL PREFERRED STOCK (2.4%)
(COST $281,850) $279,875
--------------
TOTAL HOLDINGS
(COST $9,222,840)(a) $11,744,734
==============
<FN>
(a) Also represents cost for Federal income tax purposes.
* Non-income producing securities.
The accompanying notes are an integral part of these financial statements.
</TABLE>
17
<PAGE> 19
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1995
SCHEDULE OF INVESTMENTS SMALL CAP PORTFOLIO
MARKET
SHARES COMMON STOCK VALUE
- -----------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE AND RELATED (3.8%)
3,500 * Custom Chrome Inc. $94,063
6,000 Defiance Inc. 36,750
2,000 Walbro Corp. 40,500
--------------
171,313
--------------
BANKING (6.1%)
4,000 Community First Bankshares 94,000
5,000 First Colorado Bancorp 66,250
5,407 Franklin National Bank 56,779
2,000 Susquehanna Bancshares 53,500
--------------
270,529
--------------
BUILDING AND CONSTRUCTION (4.1%)
4,000 Hardinge Inc. 127,000
4,000 * Zaring Homes, Inc. 55,000
--------------
182,000
--------------
BUSINESS SERVICES (3.4%)
2,000 Reynolds & Reynolds 106,500
2,500 Wackenhut Corp. Class B 45,937
--------------
152,437
--------------
CHEMICALS (3.0%)
3,000 Learonal Inc. 75,000
1,500 OM Group Inc. 58,875
--------------
133,875
--------------
COMMUNICATIONS (7.7%)
3,500 * American Portable Telecom 37,625
3,000 * Atlantic Tele-Network Inc. 72,000
5,000 * Comdial Corp. 43,125
3,000 * General Cable PLC 46,125
4,000 * Granite Broadcasting, Corp. 51,750
3,500 * Xpedite Systems Inc. 93,625
--------------
344,250
--------------
COMPUTER AND RELATED (6.3%)
4,000 * American Business Info. 73,000
3,000 * Computron Software Inc. 14,625
6,000 * Continental Circuits Corp. 70,500
3,000 * Ikos Systems, Inc. 63,375
5,000 MacNeal-Schwendler Corp. 37,500
2,000 * Medar Inc. 20,750
--------------
279,750
--------------
CONSUMER PRODUCTS (3.4%)
6,000 * Globe Business Resources 60,000
1,500 Stanhome Inc. 39,750
4,000 Versa Technologies 54,000
--------------
153,750
--------------
DURABLE GOODS (4.4%)
3,250 * Mastec Inc. 82,062
3,300 Myers Industries 61,462
3,000 * Zebra Technology Corp. 53,250
--------------
196,774
--------------
ELECTRICAL EQUIPMENT (2.7%)
2,500 BMC Industries Inc. 71,875
2,000 Federal Signal Corp. 47,000
--------------
118,875
--------------
ENTERTAINMENT AND LEISURE (1.3%)
1,500 Cedar Fair 56,062
--------------
MARKET
SHARES COMMON STOCK VALUE
- -------------------------------------------------------------
<S> <C> <C>
FINANCE (6.8%)
6,500 Bando McGlocklin Capital $71,500
2,750 * Olympic Financial LTD 63,250
1,500 PHH Corp. 85,500
4,000 SEI Corp. 84,500
--------------
304,750
--------------
FOOD AND RELATED (1.6%)
6,000 * Buffets, Inc. 73,500
--------------
FORESTRY AND PAPER PRODUCTS (2.0%)
6,000 * Specialty Paperboard 87,750
--------------
MACHINERY (2.1%)
2,000 * Bridgeport Machines Inc. 33,000
2,500 Kysor Industrial Corp. 60,625
--------------
93,625
--------------
MEDICAL AND RELATED (6.4%)
9,000 * Bio Whittaker Inc. 75,375
3,000 * Cephalon Inc. 59,250
4,000 Healthcare Realty Trust 95,000
3,000 * ICU Medical 41,250
625 * Quorum Health Group Inc. 16,484
--------------
287,359
--------------
METAL AND MINING (3.1%)
2,500 Amcast Industrial Corp. 50,625
4,500 Easco Inc. 37,125
3,500 Greenbrier Companies Inc. 48,563
--------------
136,313
--------------
OIL, ENERGY AND NATURAL GAS (9.4%)
5,000 * Cairn Energy USA Inc. 71,875
2,500 Camco International, Inc. 84,688
5,000 * Louis Dreyfus Natural Gas 75,000
8,000 Santa Fe Energy Resources 95,000
2,000 WD-40 Co. 94,000
--------------
420,563
--------------
REAL ESTATE (4.8%)
6,000 Commercial Net Lease Realty 83,250
3,000 First Industrial Realty Trust 70,500
3,000 Liberty Property Trust 59,625
--------------
213,375
--------------
RETAIL (1.9%)
5,000 Family Dollar Stores 86,875
--------------
TRANSPORTATION (0.7%)
1,500 * Genesee & Wyoming 30,750
--------------
MISCELLANEOUS (4.5%)
6,000 * Offshore Logistics Inc. 83,250
2,000 Pittston Brink's Group 58,250
1,000 Pittston Burlington Group 21,625
1,000 * Whittman-Hart Inc. 36,000
--------------
199,125
--------------
TOTAL COMMON STOCK (89.5%)
(COST $3,850,096) $3,993,600
--------------
(continued)
</TABLE>
18
<PAGE> 20
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1995
SCHEDULE OF INVESTMENTS SMALL CAP PORTFOLIO (CONTINUED)
MARKET
SHARES PREFERRED STOCK VALUE
- -------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (0.7%)
1,250 Oasis Residential, Inc.,
9.000% Series A $31,876
--------------
OIL, ENERGY AND NATURAL GAS (1.1%)
1,000 Howell Corp.
$3.50 Series A 49,000
--------------
TOTAL PREFERRED STOCK (1.8%)
(COST $82,350) $80,876
--------------
FACE MARKET
AMOUNT REPURCHASE AGREEMENT VALUE
- -------------------------------------------------------------------
BANKING (8.1%)
$360,000 Provident Bank 4.700% due 07-01-96
repurchase price $360,188 $360,000
collateralized by U.S. --------------
Treasury Notes, due
08-15-96 (Cost $360,000)
TOTAL REPURCHASE AGREEMENTS
(8.1%) (COST $360,000) $360,000
--------------
TOTAL HOLDINGS
(COST $3,932,446)(A) $4,434,476
==============
<FN>
(a) Also represents cost for Federal income tax purposes.
* Non-income producing securities
The accompanying notes are an integral part of these financial statements.
</TABLE>
19
<PAGE> 21
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS INTERNATIONAL PORTFOLIO
MARKET
SHARES COMMON AND PREFERRED STOCK VALUE
- -----------------------------------------------------------
<S> <C> <C>
JAPAN (20.1%)
15,000 Aida Engineering Limited (19) $125,473
3,000 Asatsu Inc. (20) 129,989
3,000 Chofu Seisakusho (9) 74,709
50,000 Dai Tokyo Fire Marine Inc.
Co. Ltd.(18) 376,283
35,000 Dowa Fire & Marine (18) 190,924
1,500 Hitachi Ltd. ADR (11) 140,625
12,000 Fuji Photo Film Co. Ltd. (9) 378,746
25,000 * Iino Kaiun Kaisha (5) 135,234
5,000 Ito-Yokado Co. Ltd. (28) 301,482
25,000 Nisshinbo Industries Inc. (8) 246,294
10,000 Shimano Inc. (9) 178,791
25,000 Shoei Co. (27) 294,185
1,800 Toho Co. (20) 318,541
3,000 Tsutsumi Jewelry Co. (9) 145,040
--------------
3,036,316
--------------
FRANCE (9.5%)
2,000 Compagnic Generale des Eaux (33) 223,143
2,500 Elf Aquitaine (12) 183,656
2,000 Emin Leydier (24) 176,574
3,000 Gaumont SA (20) 224,113
2,000 Legrand ADP (10) 234,785
1,000 Nicolas Schlumberger et Cie (19) 131,945
1,000 Promodes C.I. (28) 181,425
350 Taittinger (13) 74,976
--------------
1,430,617
--------------
LATIN AMERICA (7.5%)
30,000 Antofagasta Holding plc (21) 150,340
5,500 Bladex (3) 309,375
25,000 Cresud S.A. (1) 50,519
50,000 Ledesma S.A. (1) 216,081
300,000 Siderca S.A.I.C. (12) 409,654
--------------
1,135,969
--------------
SWITZERLAND (7.2%)
50 Bank for Intl. Settements (3) 438,772
500 Kuehne & Nagel Intl. AG (32) 282,010
75 Lindt & Sprungli AG PC (9) 128,640
50 Schindler Holding AG PC (5) 53,052
100 Schindler Warrants AG PC (5) 180
500 Sika Finanz AG Bearer (7) 121,659
200 Vetropack Holdings AG PC (23) 62,226
--------------
1,086,539
--------------
CANADA (5.1%)
10,000 Canadian Pacific Ltd. (34) 220,000
5,000 Dofasco, Inc. (30) 73,689
2,750 Franco-Nevada Mining Corp. (21) 174,414
15,000 Noranda, Inc. (21) 307,402
--------------
775,505
--------------
GERMANY (4.6%)
7,500 Bayer AG (7) 263,508
1,000 Buderus AG (5) 423,187
--------------
686,695
--------------
NETHERLANDS (4.3%)
4,500 German City Estates NV (27) 57,925
3,500 Apothekers Cooperatie OPG (17) 93,587
4,500 Randstad Holding NV (29) 331,754
5,000 Philips Electronics NV ADR (11) 163,125
--------------
646,391
--------------
MARKET
SHARES COMMON AND PREFERRED STOCK VALUE
- ------------------------------------------------------------
NEW ZEALAND (4.2%)
50,000 Apple Fields, Ltd. (14) $21,973
100,549 Carter Holt Harvey Limited (14) 229,910
130,000 Shortland Properties, Ltd. (27) 73,197
240,260 Tasman Agriculture Limted (1) 206,218
15,000 Wilson & Horton Ltd. (1) 99,908
--------------
631,206
--------------
HONG KONG (3.7%)
500,000 CDL Hotels Intl. Ltd. (16) 274,523
250,000 Shaw Brothers (Hong Kong)
Ltd.(20) 290,671
--------------
565,194
--------------
SINGAPORE (3.4%)
75,000 Clipsal Industries Ltd. (10) 210,750
15,000 Singapore Bus Service Ltd. (32) 106,293
100,000 Thakral Corporation (10) 75,500
50,000 Times Publishing Ltd. (25) 121,882
--------------
514,425
--------------
SWEDEN (3.3%)
8,500 AssiDoman AB (14) 197,811
12,000 Bylock & Nordsjofrakt
AB 'B' (32) 118,393
7,000 IRO AB (19) 71,699
7,500 Orrefors Kosta Boda
'Free' (9) 111,841
--------------
499,744
--------------
INDONESIA (2.7%)
5,500 Freeport McMoRan Pfd. 'C' (22) 176,000
10,500 Freeport McmoRan Pfd. 'D' (22) 229,688
--------------
405,688
--------------
UNITED KINGDOM (1.8%)
25,000 Berisford plc (34) 70,205
45,000 * McBride plc (9) 91,461
25,000 Royal Doulton plc (9) 106,666
--------------
268,332
--------------
DENMARK (1.4%)
3,500 Carlsberg International
A/S 'B' (9) 205,619
--------------
NORWAY (1.3%)
15,000 Schibsted AS (20) 193,661
--------------
ITALY (1.2%)
300,000 * Montedison NC Savings SPA (34) 179,661
--------------
FINLAND (0.8%)
2,500 Vaisala Oy A (5) 126,037
--------------
MEXICO (0.7%)
25,000 Industrias Penoles SA de
CV (21) 114,371
--------------
ISRAEL (0.6%)
35,000 Israel Land Development
Co. Ltd. (34) 86,521
--------------
SPAIN (0.5%)
1,000 Corporacion Financiera
Alba SA (34) 83,076
--------------
BELGIUM (0.6%)
571 Engrais Rosier SA (34) 83,029
--------------
(continued)
</TABLE>
20
<PAGE> 22
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS INTERNATIONAL PORTFOLIO (CONTINUED)
MARKET
SHARES COMMON AND PREFERRED STOCK VALUE
- ---------------------------------------------------------------
<S> <C> <C>
SOUTH KOREA (0.5%)
10,000 L.G. Electronics Pfd GDR (11) $75,500
--------------
TURKEY (0.4%)
2,662,640 Medya Holdings SA (25) 58,129
--------------
MISCELLANEOUS (3.2%)
12,000 North European Oil Royalty Tr. (12) 160,500
3,000 Minorco ADR (34) 71,250
85,000 Lonrho plc (34) 243,973
--------------
475,723
--------------
TOTAL COMMON & PREFERRED STOCK
(88.6%) (COST $11,510,083) $13,363,948
--------------
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- ---------------------------------------------------------------
FINANCE (5.3%)
$138,000 American Express
5.390% 07-01-96 (15) $138,000
655,000 Unilever Capital Corp.
5.270% 07-09-96 (15) 654,233
--------------
792,233
--------------
TOTAL SHORT-TERM NOTES (5.3%)
( COST $792,233) $792,233
--------------
FACE MARKET
AMOUNT NON-CONVERTIBLE BONDS VALUE
- ---------------------------------------------------------------
U.S. DOLLAR (0.8%)
$150,000 Federal Republic of Brazil 6.500%
due 04-15-06 (15) $120,516
--------------
TOTAL NON CONVERTIBLE BONDS
(0.8%) (COST $93,942) $120,516
--------------
FACE MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
- ---------------------------------------------------------------
U.S. DOLLAR (3.6%)
$250,000 Cheil Foods & Chemicals Co.
3.000% due 12-31-06 (9) $307,500
75,000 Ssangyong Cement Co.
3.000% due 12-31-05 (6) 92,625
50,000 PT Pabrik Kertas Tjiwi Kimia
7.250% due 4-12-01 (24) 47,875
100,000 Tubos de Acero de Mexico SA
7.500% due 6-12-97 (12) 99,000
--------------
547,000
--------------
NON-U.S. DOLLAR (1.2%)
170,000 NZ Shortland Properties Inc.
7.500% due 12-31-98 (27) 101,556
7,000,000 JPY Nippon Yusen
2.000% due 09-29-00 (32) 77,902
--------------
179,458
--------------
TOTAL CONVERTIBLE DEBENTURES
(4.8%) (COST $651,570) $726,458
--------------
TOTAL HOLDINGS
(COST $13,047,828)(a) $15,003,155
==============
<FN>
(a) Also represents cost for Federal income tax purposes.
* Non-income producing securities.
</TABLE>
FOREIGN CURRENCIES
NZ - New Zealand Dollar
JPY - Japanese Yen
INDUSTRY CLASSIFICATIONS
(1) Agriculture (18) Insurance
(2) Automotive (19) Machinery
(3) Banking (20) Media
(4) Building Products (21) Metal (non-ferrous)
(5) Capital Goods (22) Mining
(6) Cement (23) Packaging
(7) Chemicals (24) Paper
(8) Computer Products (25) Publishing
(9) Consumer Products (26) Rail Equipment
(10) Electrical Products (27) Real Estate
(11) Electronics (28) Retailing
(12) Energy and Oil (29) Services
(13) Food & Beverage (30) Steel
(14) Forest Products (31) Textile
(15) Governmental (32) Transportation
(16) Hotels (33) Utilities
(17) Health Care (34) Miscellaneous
The accompanying notes are an integral part of these financial statements
21
<PAGE> 23
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS GLOBAL CONTRARIAN PORTFOLIO
MARKET
SHARES COMMON AND PREFERRED STOCK VALUE
- -------------------------------------------------------------
<S> <C> <C>
U.S STOCKS
CHEMICALS (1.1%)
5,000 Lawter International Inc. $62,500
-------
CAPITAL GOODS (0.8%)
1,000 Bandag Inc. Class 'A' 46,875
-------
CONSUMER PRODUCTS (6.1%)
2,000 Allen Organ Co. Class 'B' 75,500
1,300 Dole Foods Company, Inc. 55,900
10,000 Furniture Brands Intl., Inc. 110,000
5,000 Unifirst Corp. 105,625
-------
347,025
-------
ELECTRONICS (3.5%)
5,000 * Avid Technology, Inc. 92,500
5,000 Zero Corp. 106,875
-------
199,375
-------
FINANCE (4.8%)
5,000 * Classic Bancshares Inc. 52,500
7,000 East Texas Financial Services 101,500
5,000 * First Federal Financial Corp. 55,000
5,000 Southern Banc Company, Inc. 63,125
-------
272,125
-------
FOREST PRODUCTS (3.3%)
500 Georgia Pacific Corporation 35,500
2,500 Greif Brothers Corp. Class 'A' 78,438
2,000 Rayonier Inc. 76,000
-------
189,938
-------
MEDIA (2.0%)
2,000 Cowles Media Co. Pfd. 48,000
8,000 Integrity Music, Inc. 'A' 18,000
5,000 * Plasti Line, Inc. 45,000
-------
111,000
-------
METALS AND MINERALS (2.4%)
3,000 Asarco, Inc. 82,875
1,000 Reynolds Metals Company 52,125
-------
135,000
-------
OIL AND ENERGY (4.9%)
6,500 North European Oil Royalty Trust 86,938
1,300 Rochester & Pittsburgh Coal Co. 40,950
10,000 San Juan Basin Royalty Trust 61,250
2,957 * Weatherford Enterra Corporation 88,710
-------
277,848
-------
REAL ESTATE (2.7%)
2,000 Alico, Inc. 39,000
2,000 Catellus Development Pfd. 106,000
433 * Castle & Cooke, Inc. 6,928
-------
151,928
-------
UTILITIES (0.8%)
2,000 Montana Power Co. 44,500
-------
MISCELLANEOUS (1.1%)
6,000 * Kaiser Ventures Inc. 61,500
-------
TOTAL U.S. (33.5%) $1,899,614
----------
MARKET
SHARES COMMON AND PREFERRED STOCK VALUE
- -------------------------------------------------------------
FOREIGN
JAPAN (8.2%)
5,000 Airport Facilities Co., Ltd. (32) $43,375
6,000 Dai Tokyo Fire & Marine Ins. Co.,
Ltd. (18) 45,154
10,000 Dowa Fire & Marine Ins. Co., Ltd. (18) 54,550
2,500 Fuji Photo Film Co. Ltd. (9) 78,905
7,000 Nittetsu Mining Co., Ltd. (22) 71,517
400 Toho Co. (20) 70,787
4,000 Tokio Marine Fire & Ins. Co., Ltd. (18) 53,272
3,000 Yoshimoto Kogyo Co. (20) 45,427
-------
462,987
-------
FRANCE (6.3%)
5 Bank for Intl. Settlements (3) 41,330
650 Emin Leydier (14) 57,386
83 FIMALAC SA (34) 36,381
1,100 Gaumont SA (20) 82,175
500 Legrand ADP (10) 58,696
250 Nicolas Schlumberger et Cie (19) 32,987
600 Rougier SA (14) 50,062
-------
359,017
-------
LATIN AMERICA (4.2%)
10,000 Antofagasta Holding plc (21) 50,113
150,000 * Grupo Fernandez Editores (25) 61,107
25,000 IRSA Inversiones y Rep. SA (27) 85,532
30,000 Ledesma SA (1) 43,216
-------
239,968
-------
GERMANY (4.1%)
2,500 Bayer AG (7) 87,836
200 Buderus AG (5) 84,637
100 Axel Springer Verlag AG (20) 62,330
-------
234,803
-------
SWITZERLAND (4.0%)
5 Bank for Intl. Settlements (3) 43,877
200 Kuehne & Nagel International AG (3) 112,804
65 Schindler Holding AG PC (5) 68,967
65 Schindler Holding AG 'Warrants' (5) 117
-------
225,765
-------
INDONESIA (3.2%)
2,500 Freeport McMoRan Pfd. 'D' (22) 54,687
4,000 Freeport McMoRan Pfd. 'C' (22) 128,000
-------
182,687
-------
NEW ZEALAND (3.2%)
50,000 Carter Holt Harvey Ltd. (14) 114,327
50,000 Shortland Properties, Ltd. (27) 28,153
50,000 Wrightson Ltd. (1) 36,736
-------
179,216
-------
BELGIUM (2.2%)
376 Engrais Rosier SA (34) 54,674
30 Socfinasia SA (34) 68,974
-------
123,648
-------
UNITED KINGDOM (2.2%)
45,000 ED & F Man (34) 121,482
-------
SOUTH AFRICA (2.1%)
10,000 Vaal Reefs Exploration Ltd. ADR (21) 80,000
2,500 Western Areas Gold Mining Ltd. (21) 38,968
-------
118,968
-------
(continued)
</TABLE>
22
<PAGE> 24
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
SCHEDULE OF INVESTMENTS GLOBAL CONTRARIAN PORTFOLIO (CONTINUED)
MARKET
SHARES COMMON AND PREFERRED STOCK VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
HONG KONG (2.0%)
100,000 CDL Hotels Intl. Ltd. (16) $54,905
50,000 Shaw Brothers (Hong Kong) Ltd.(20) 58,134
----------
113,039
----------
PORTUGAL (1.8%)
8,000 Espirito Santo Financial Holdings (3) 102,000
----------
SWEDEN (1.7%)
5,000 Bylock & Nordsjofrakt AB 'B' (32) 49,331
2,500 Terra Mining AB (22) 47,824
----------
97,155
----------
CANADA (1.1%)
3,000 Noranda, Inc. (21) 61,480
----------
SINGAPORE (0.8%)
6,500 Singapore Bus Service Ltd. (32) 46,060
----------
AUSTRALIA (0.8%)
30,000 Barlile Corp. Limited (1) 44,862
----------
NETHERLANDS (0.6%)
2,500 German City Estates NV (27) 32,181
----------
ISRAEL (0.4%)
10,000 Israel Land Development Co. Ltd. (34) 24,720
----------
MISCELLANEOUS (1.3%)
25,000 Lonrho plc (34) 71,757
----------
TOTAL FOREIGN (50.2%) $2,841,795
----------
TOTAL COMMON & PREFERRED STOCK
(83.7%) (COST $4,315,737) $4,741,409
----------
FACE MARKET
AMOUNT SHORT-TERM NOTES VALUE
- --------------------------------------------------------------------
<C> <C>
FINANCE (2.2%)
$121,000 American Express Credit Corp.
5.390% due 07-01-96 $121,000
----------
CONSUMER PRODUCTS (4.3%)
246,000 Coca Cola Co.
5.300% due 07-24-96 245,167
----------
TOTAL SHORT-TERM NOTES (6.5%)
(COST $366,167) $366,167
----------
FACE MARKET
AMOUNT NON-CONVERTIBLE BONDS VALUE
- --------------------------------------------------------------------
U.S. DOLLAR
$50,000 Aracruz Cellulose SA 9.000%
due 07-22-98 (14) $49,875
50,000 Cemex SA 10.000%
due 11-05-99 (6) 49,937
50,000 Noble Drilling 9.250%
due 10-01-03 (12) 49,875
150,000 Federal Republic Of Brazil EI FRN
6.500% due 04-15-06 (15) 120,516
148,500 Republic of Argentina FRB
6.312% due 03-31-05 (15) 116,062
50,000 PT Pabrik Kertas Tjiwi Kimia
13.250% due 08-01-01 (14) 56,063
----------
TOTAL NON-CONVERTIBLE BONDS
(7.8%) (COST $389,835) $442,328
----------
FACE MARKET
AMOUNT CONVERTIBLE DEBENTURES VALUE
- --------------------------------------------------------------------
NON U.S. DOLLAR
$100,000 NZ Shortland Properties Inc.
7.500% due 12-31-98 (27) $59,738
100,000 FF Immobilier Hoteliere
5.000% due 01-01-01 (16) 31,046
----------
TOTAL CONVERTIBLE DEBENTURES
(1.6%) (COST $97,642) $90,784
----------
TOTAL HOLDINGS
(COST $5,169,381)(A) $5,640,688
==========
<FN>
(a) Also represents cost for Federal income tax purposes.
* Non-income producing securities.
</TABLE>
FOREIGN CURRENCIES
NZ - New Zealand Dollar
FF - French Franc
<TABLE>
<CAPTION>
INDUSTRY CLASSIFICATIONS
<S> <C> <C> <C>
(1) Agriculture (12) Energy and Oil (23) Packaging
(2) Automotive (13) Food & Beverage (24) Paper
(3) Banking (14) Forest Products (25) Publishing
(4) Building Products (15) Governmental (26) Rail Equipment
(5) Capital Goods (16) Hotels (27) Real Estate
(6) Cement (17) Health Care (28) Retailing
(7) Chemicals (18) Insurance (29) Services
(8) Computer Products (19) Machinery (30) Steel
(9) Consumer Products (20) Media (31) Textile
(10) Electrical Products (21) Metal (non-ferrous) (32) Transportation
(11) Electronics (22) Mining (33) Utilities
(34) Miscellaneous
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE> 25
ONE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(1) BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
ONE Fund, Inc. (Fund) is registered under the Investment Company Act of
1940 as amended (the "1940 Act"), as a diversified open-end management
investment company. The Fund is a series investment company which consists
of eight separate investment portfolios that seek the following investment
objectives:
MONEY MARKET PORTFOLIO -- current income consistent with preservation of
capital and liquidity.
TAX-FREE INCOME PORTFOLIO -- high current income exempt from federal income
taxes.
INCOME PORTFOLIO --high current income. Preservation of capital is a
secondary objective.
INCOME & GROWTH PORTFOLIO -- moderate income with the potential for
increasing income over time. Growth of capital is also a primary objective.
GROWTH PORTFOLIO --long-term capital growth.
SMALL CAP PORTFOLIO --maximum capital growth by investing primarily in
common stocks of small and medium sized companies.
INTERNATIONAL PORTFOLIO -- long-term capital growth by investing primarily
in common stocks of foreign companies.
GLOBAL CONTRARIAN PORTFOLIO --long-term growth of capital by investing in
foreign and domestic securities believed to be under valued or presently
out of favor.
The following is a summary of significant accounting policies:
Investments in the Money Market Portfolio are valued at amortized cost in
accordance with Rule 2a-7 which approximates market value. Premiums and
discounts are amortized on a straight line basis. For the Money Market,
Income and the Tax-Free Income Portfolios, all of the undistributed net
income is accrued as daily dividends to shareholders of record immediately
before each computation of the net asset value of these portfolios.
Dividends (representing net investment income) will normally be paid
monthly to the shareholders of these three portfolios. Distributions
arising from net investment income from the remaining portfolios are
declared and paid to shareholders quarterly and are recorded on the
ex-dividend date. Accumulated net realized capital gains are distributed to
shareholders at least once a year.
For all other portfolios, securities which are traded on U.S. and foreign
stock exchanges or in the over-the-counter markets are valued at the last
sale price or, if there has been no sale that day, at the last bid price
reported as of 4 p.m. Eastern time on each day the New York Stock Exchange
is open for unrestricted trading. Over-the-counter securities are valued at
the last bid price as of that time. Short-term investments (investments
with remaining maturities of 60 days or less) are valued at amortized cost
and fixed income securities are valued by using market quotations, or
independent pricing services which use prices provided by market markers or
estimates of market values obtained from yield data relating to instruments
or securities with similar characteristics. All investments and cash quoted
in foreign currencies are valued daily in U.S. dollars on the basis of the
foreign currency exchange rates prevailing at the time of such valuation.
Foreign currency exchange rates are generally determined prior to 4 p.m.
Eastern time. Occasionally, events affecting the value of foreign
investments and such exchange rates occur between the time at which they
are determined and the time of valuation, which in the case of the
International and Global Contrarian Portfolios, would not be reflected in
the computation of the portfolios' net asset values. If events materially
affecting the value of such securities or currency exchange rates occurred
during such time period, the securities are valued at their fair value as
determined in good faith by or under the direction of the Fund's Board of
Directors.
In connection with purchases and sales of securities denominated in foreign
currencies, the Fund may enter into forward foreign currency exchange
contracts (forward contract). A forward contract is a commitment to
purchase or sell a foreign currency at a future date, at a negotiated rate.
Additionally, the Fund may enter into such contracts to hedge certain other
foreign currency denominated investments. These contracts are recorded at
market value, and the related realized and unrealized foreign exchange
gains and losses are included in the statement of operations. In the event
that counterparties fail to settle these currency contracts or the related
foreign security trades, the Fund could be exposed to foreign currency
fluctuations.
The Fund may invest in two kinds of financial futures contracts: stock
index futures contracts and interest rate futures contracts. Stock index
futures contracts are contracts developed by and traded on national
commodity exchanges whereby the buyer will, on a specified future date, pay
or receive a final cash payment equal to the difference between the actual
value of the stock index on the last day of the contract and the value of
the stock index established by the contract multiplied by the specific
dollar amount set by the exchange. Futures contracts may be based on
broad-based stock indexes such as the Standard & Poor's 500 Index or on
narrow-based stock indexes. A particular index will be selected according
to Ohio National Investments, Inc. ("ONI's"), the investment advisor to the
Fund, investment strategy for the particular portfolio. The Fund may enter
into such contracts to reduce the risk of fluctuation of portfolio
securities values or to take advantage of expected market flucuations.
(continued)
24
<PAGE> 26
ONE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1996
Securities transactions are recorded on a trade date basis. Dividend income
is recognized on the ex-dividend date (except in the case of the
International and Global Contrarian Portfolios in which dividends are
recorded as soon after the ex-dividend date as the fund becomes aware of
such dividends), and interest income is accrued daily as earned. Net
realized gain or loss on investments and foreign exchange transactions are
determined on the basis of identified cost.
The books and records of the International and Global Contrarian Portfolios
are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars on the following basis:
(1) market value of investments, other assets and liabilities -- at
exchange rates prevailing at the end of the period.
(2) purchases and sales of investments, income and expenses -- at the
rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets and the market value of the portfolios are
presented at the foreign exchange rates at the end of the period, the
portfolios do not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of changes in the market price of the
investments. However, the portfolios do isolate the effect of fluctuations
in foreign exchange rates when determining the gain or loss upon sale or
maturity of foreign-currency denominated debt obligations pursuant to
Federal income tax regulations.
Foreign investment and currency transactions may involve certain
considerations and risks not typically associated with investing in U.S.
companies and the U.S. Government. These risks, including re-evaluation of
currency and future adverse political and economic developments, could
cause investments and their markets to be less liquid and prices more
volatile than those of comparable U.S. companies and the U.S. Government.
Each portfolio may acquire repurchase agreements from member banks of the
Federal Reserve System which ONI deems creditworthy under guidelines
approved by the Board of Directors, subject to the seller's agreement to
repurchase such securities at a mutually agreed upon date and price. The
repurchase price generally equals the price paid by the portfolio plus
interest negotiated on the basis of current short-term rates, which may be
more or less than the rate on the underlying portfolio securities. The
seller, under a repurchase agreement, is required to maintain as collateral
for the repurchase transaction securities in which the portfolio has a
perfected security interest with a value not less than 100% of the
repurchase price (including accrued interest). Securities subject to
repurchase agreements are held by the Fund's custodian or another qualified
custodian or in the Federal Reserve/Treasury book-entry system. Repurchase
agreements are considered to be loans by the portfolio under the 1940 Act.
For Federal income tax purposes, the Tax- Free Income and Income Portfolios
had net capital losses of $7,298 and $110,897 respectively at June 30,
1996. If not offset by subsequent capital gains, $50,933 will expire June
30, 2003 in the Income Portfolio and $7,298 and $59,964 will expire June
30, 2004 in the Tax-Free Income and Income Portfolios, respectively. The
Board of Directors does not intend to authorize a distribution of any net
realized gain for the portfolios until the capital loss carryovers have
been offset or expire.
It is the policy of the Fund to distribute to its shareholders
substantially all of its taxable income, thus gaining relief from Federal
income taxes under provisions of current tax regulations applicable to
investment companies of this type. Accordingly, no provision for Federal
income taxes has been made.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
The gross unrealized appreciation and depreciation of investments in each
portfolio as of June 30, 1996 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------------------
MONEY TAX-FREE INCOME & SMALL INTER- GLOBAL
MARKET INCOME INCOME GROWTH GROWTH CAP NATIONAL CONTRARIAN
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross unrealized:
Appreciation.. $ -- $420,367 $ 85,528 $2,153,386 $3,070,363 $ 741,040 $2,580,415 $690,367
Depreciation.. (10,898) (77,269) (339,662) (548,469) (239,010) (625,088) (219,060)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized
Appreciation.. $ -- $409,469 $ 8,259 $1,813,724 $2,521,894 $502,030 $1,955,327 $471,307
====================================================================================================================================
(continued)
</TABLE>
25
<PAGE> 27
ONE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1996
The Money Market, Income, Income & Growth and Growth Portfolios were
organized on May 12, 1992 with the commencement of operations on August 18,
1992. The International Portfolio was organized on March 18, 1993 with
commencement of operations on April 30, 1993. The Small Cap, Tax-Free
Income and Global Contrarian Portfolios were organized on September 15,
1994 with the commencement of operations on November 1, 1994.
Organizational expenses of approximately $68,000 were incurred with the
start up of the original four portfolios, $11,590 with the start up of the
International Portfolio and $7,813 with the Small Cap, Tax-Free Income and
Global Contrarian Portfolios. Such expenses will be charged against
operations on a straight line basis over a period of 60 months from the
commencement of operations of the respective portfolios. The Fund's
sponsoring entity, Ohio National Life Insurance Company (ONLIC), has agreed
that it shall continue to hold the intial shares purchased by it for at
least as long as unamortized deferred organizational expenses continue to
be carried as an asset of the Fund. The initial shares purchased were
25,000 shares of the Money Market Portfolio, 2,500 shares each of the
Income, Income & Growth and Growth Portfolios and 100 shares each of the
International, Small Cap, Tax-Free Income and Global Contrarian Portfolios.
ONLIC and its affiliates have also purchased additional shares of each
portfolio and as of June 30, 1996 the additional shares owned were as
follows: 11,844,570 shares of the Money Market Portfolio, 544,462 shares of
the Tax-Free Income Portfolio, 496,855 shares of the Income Portfolio,
404,431 shares of the Income & Growth Portfolio, 289,013 shares of the
Growth Portfolio, 210,852 shares of the Small Cap Portfolio and 264,296
shares of the Global Contrarian Portfolio.
(2) INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
securities) from July 1, 1995 to June 30, 1996 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO
------------------------------------------------------------------------------------------------
MONEY TAX-FREE INCOME & SMALL INTER- GLOBAL
MARKET INCOME INCOME GROWTH GROWTH CAP NATIONAL CONTRARIAN
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common and Preferred
Stocks and bonds:
Purchases............ $ -- $938,547 $799,239 $2,173,061 $ 3,938,170 $2,373,624 $4,020,828 $2,098,419
-------------------------------------------------------------------------------------------------
Sales................ -- 477,250 185,630 545,122 1,822,326 1,041,545 2,571,099 1,166,746
-------------------------------------------------------------------------------------------------
U. S. Government:
Purchases ........... -- -- -- -- -- -- -- --
=================================================================================================
Sales................ -- -- 406,969 -- -- -- -- --
=================================================================================================
</TABLE>
(3) INVESTMENT ADVISORY AGREEMENT, SUB-ADVISORY AGREEMENT AND TRANSACTIONS WITH
AFFILIATED PERSONS
The Fund has an investment advisory agreement with ONI, a wholly owned
subsidiary of ONLIC, under the terms of which ONI provides portfolio
management and investment advice to the Fund and administers its other
affairs, subject to the supervision of the Fund's Board of Directors. As
compensation for its services, the Fund pays ONI a fee based on the average
daily net asset value of each portfolio's assets.
For assets held in the Money Market, Tax-Free Income, Income, Income &
Growth, Growth and Small Cap Portfolios, the fees are as follows:
<TABLE>
<CAPTION>
PORTFOLIO
---------------------------------------------------------------------------------------------------
MONEY TAX-FREE INCOME & SMALL
MARKET INCOME INCOME GROWTH GROWTH CAP
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
First $100 mil... 0.30% 0.60% 0.50% 0.50% 0.50% 0.65%
Next $150 mil.... 0.25% 0.50% 0.40% 0.40% 0.40% 0.55%
Over $250 mil.... 0.20% 0.40% 0.30% 0.30% 0.30% 0.45%
</TABLE>
For the International and Global Contrarian Portfolios, ONI is paid a fee
at an annual rate of 0.90% of each Portfolios' average daily net asset
values. ONI then pays Societe Generale Asset Management Corporation (SGAM)
fees at an annual rate of 0.75% of the average daily net asset value for
directing the investment and reinvestment of each portfolios' assets
pursuant to a sub-advisory agreement between ONI and SGAM dated May 1,
1996. On May 1,1996, ONI succeeded O.N. Investment Management Company
("ONIMCO") as the Fund's investment adviser. Currently, the entire
management fee for the Money Market portfolio and one-half of the
management fees for the Tax-Free Income, Income, Income & Growth, Growth
and Small Cap Portfolios are being waived by
26
<PAGE> 28
ONE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,1996
ONI. Management fees waived by ONI and ONIMCO for the year ended June 30,
1996 were $48,270 ($.003 per share), $18,284 ($.033 per share), $18,095
($.024 per share), $22,949 ($.031 per share), $23,795 ($.037 per share),
and $12,132 ($.038 per share) for the Money Market, Tax Free Income,
Income, Income & Growth, Growth and Small Cap Portfolios, respectively.
Under the agreement between the Fund and ONI, ONI has agreed to reimburse
the portfolios for expenses, other than the advisory fees, 12b-1 fees,
taxes and interest, in excess of 1% of their average daily net assets. For
the year ended June 30, 1996 the reimbursement to the Global Contrarian
Portfolio by ONI and ONIMCO was $12,200.
Each director who is not an officer of the Fund or an employee of ONI or
its corporate affiliates is paid a quarterly retainer fee of $850 plus $200
for each meeting attended.
The Fund's transfer agent and dividend paying agent is The Provident Bank,
One East Fourth Street, Cincinnati, Ohio. The Provident Bank is also the
custodian for all Portfolios other than the International and Global
Contrarian Portfolios. The custodian for the International and Global
Contrarian Portfolios is Investors Fiduciary Trust Company, 127 West Tenth
Street, Kansas City, Missouri. International and Global Contrarian
Portfolio assets held outside the United States are held under subcustodial
agreements between the depository and Investors Fiduciary Trust Company,
subject to approval by the Board of Directors of the Fund.
Certain directors and officers of the Fund are also directors and officers
of ONI and ONLIC.
(4) CAPITAL SHARE TRANSACTIONS
Capital share transactions for the years ended June 30,1996 and 1995 were
as follows:
<TABLE>
<CAPTION>
MONEY MARKET TAX-FREE INCOME INCOME INCOME & GROWTH
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6-30-96 6-30-95 6-30-96 6-30-95(a) 6-30-96 6-30-95 6-30-96 6-30-95
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital shares
issued on sales........ 13,411,231 9,788,975 29,199 516,664 79,707 218,237 205,769 67,968
Capital shares issued
on reinvested dividends 821,475 655,189 28,673 14,929 44,241 39,464 35,442 57,059
Capital shares redeemed.... 12,570,685 8,595,276 6,062 1,120 126,327 17,716 65,893 160,244
</TABLE>
<TABLE>
<CAPTION>
GROWTH SMALL CAP INTERNATIONAL GLOBAL CONTRARIAN
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6-30-96 6-30-95 6-30-96 6-30-95(a) 6-30-96 6-30-95 6-30-96 6-30-95(a)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital shares
issued on sales......... 241,707 121,570 98,533 278,900 269,792 469,800 116,554 380,856
Capital shares issued
on reinvested dividends. 39,278 19,094 9,214 4,622 45,454 75,358 8,493 10,626
Capital shares
redeemed............... 56,076 63,769 34,177 9,130 201,916 397,410 17,222 6,072
</TABLE>
(a)Commenced operations November 1, 1994
Sales charges imposed on capital shares sold by ONESCO, the Fund's
principal underwriter, a wholly owned subsidiary of ONLIC, for the year
ended June 30, 1996 were approximately $7,200, $17,700, $69,100, $61,400,
$27,800, $84,700 and $27,000 for the Tax-Free Income, Income, Income &
Growth, Growth, Small Cap, International and Global Contrarian Portfolios,
respectively.
The Fund is authorized to issue 10 billion of its capital shares. The Money
Market Portfolio has been allocated 200 million shares and the other seven
portfolios have been allocated 100 million shares each. The remaining
shares have not been allocated.
27
<PAGE> 29
ONE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,1996
(5) COMMITMENTS
The International and Global Contrarian Portfolios enter into foreign
currency exchange contracts as a way of managing foreign exchange rate
risk. The Fund may enter into these contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date as a hedge
against either specific transactions or portfolio positions. The objective
of the Fund's foreign currency hedging transactions is to reduce the risk
that the U.S. dollar value of the Fund's securities denominated in foreign
currency will decline in value due to changes in foreign currency exchange
rates. As of June 30, 1996 the International and Global Contrarian
Portfolios had entered into forward currency contracts, as set forth below
summarized by currency:
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
SETTLEMENT CURRENCY TO BE U.S. $ VALUE CURRENCY TO BE U.S. $ VALUE UNREALIZED
DATES THROUGH DELIVERED AT 6/30/96 RECEIVED AT 6/30/96 GAIN (LOSS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/09/96 603,000 Swiss Franc 482,516 508,469 U.S. Dollar 508,469 $ 25,953 --
12/27/96 105,000 Swiss Franc 82,547 84,209 U.S. Dollar 84,209 1,662 --
08/16/96 310,000 Deutsche Mark 203,914 212,587 U.S. Dollar 212,587 8,673 --
10/11/96 213,000 Deutsche Mark 140,599 143,442 U.S. Dollar 143,442 2,843 --
07/11/96 3,000,000 French Franc 582,338 605,241 U.S. Dollar 605,241 22,903 --
08/23/96 3,140,000 French Franc 610,675 622,203 U.S. Dollar 622,203 11,528 --
10/18/96 551,000 French Franc 107,438 106,609 U.S. Dollar 106,609 -- $ (829)
07/18/96 70,000,000 Japenese Yen 640,000 707,071 U.S. Dollar 707,071 67,071 --
08/30/96 85,200,000 Japanese Yen 783,628 823,932 U.S. Dollar 823,932 40,304 --
10/25/96 45,750,000 Japanese Yen 424,063 439,217 U.S. Dollar 439,217 15,154 --
--------- -----------------------------------
4,057,718 4,252,980 $ 196,091 $ (829)
========= ===================================
</TABLE>
(6) DISTRIBUTION PLAN
The Fund has a distribution agreement (12b-1 Plan) with ONESCO under the
terms of which the Fund pays a fee for shareholders services and sales of
Fund shares based on the average daily net assets of the portfolios. For
those assets not in the Money Market Portfolio, the fee is at an annual
rate of 0.25% of average net assets and can increase to 0.30% for sales
representatives who service $5 million or more of Fund shares. The fee for
the Money Market Portfolio is 0.15% of average net assets and can increase
to a maximum of 0.17% for the aforementioned servicing level.
<TABLE>
<CAPTION>
GLOBAL CONTRARIAN PORTFOLIO
SETTLEMENT CURRENCY TO BE U.S. $ VALUE CURRENCY TO BE U.S. $ VALUE UNREALIZED
DATES THROUGH DELIVERED AT 6/30/96 RECEIVED AT 6/30/96 GAIN (LOSS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
07/03/96 150,000 Deutsche Mark 98,422 104,969 U.S. Dollar 104,969 $ 6,547 --
10/11/96 28,000 Deutsche Mark 18,482 18,644 U.S. Dollar 18,644 162 --
07/11/96 700,000 French Franc 135,879 141,223 U.S. Dollar 141,223 5,344 --
07/18/96 9,000,000 Japanese Yen 82,286 90,909 U.S. Dollar 90,909 8,623 --
08/30/96 15,000,000 Japanese Yen 137,963 146,499 U.S. Dollar 146,499 8,536 --
10/25/96 14,400,000 Japanese Yen 133,476 137,810 U.S. Dollar 137,810 4,334 --
------- -------------------------------
606,508 640,054 $ 33,546 --
======= ===============================
</TABLE>
28
<PAGE> 30
ONE Fund, Inc.
Independent Auditors' Report
The Board of Directors and Shareholders
ONE Fund, Inc.:
We have audited the accompanying statements of assets and liabilities and the
schedules of investments of ONE Fund, Inc. (comprising, respectively, the Money
Market, Tax-Free Income, Income, Income & Growth, Growth, Small Cap,
International and Global Contrarian Portfolios) as of June 30, 1996, and the
related statements of operations, statements of changes in net assets and the
financial highlights for each of the periods indicated herein. These financial
statements and financial highlights are the responsibility of the fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards 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. Our procedures included
confirmation of securities owned as of June 30, 1996, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the portfolios comprising ONE Fund, Inc. as of June 30, 1996, and the results
of their operations, the changes in their net assets and their financial
highlights for each of the periods indicated herein, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Cincinnati, Ohio
July 24, 1996
29
<PAGE> 31
<TABLE>
<CAPTION>
ONE FUND, INC. June 30, 1996
FINANCIAL HIGHLIGHTS
PORTFOLIO
------------------------------------------------------------------
MONEY MARKET TAX-FREE
-------------------------------------------- ------------------
8-18-92 YEAR 11-1-94
YEAR ENDED JUNE 30, TO ENDED TO
1996 1995 1994 6-30-93 6-30-96 6-30-95
--------------------------------------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share
outstanding throughout each period):
Net asset value, beginning of period.... $1.00 $1.00 $1.00 $1.00 $10.66 $10.00
Income from investment operations:
Net investment income ............... 0.05 0.05 0.03 0.02 0.56 0.35
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions.............. 0.00 0.00 0.00 0.00 0.13 0.66
------ ------ ------ ------ ------ -----
Total from investment
operations .................... 0.05 0.05 0.03 0.02 0.69 1.01
------ ------ ------ ------ ------ -----
Less distributions:
Dividends from net investment
income ............................ (0.05) (0.05) (0.03) (0.02) (0.56) (0.35)
Distributions from net realized
capital gains and foreign
currency transactions.............. 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ -----
Total distributions ............. (0.05) (0.05) (0.03) (0.02) (0.56) (0.35)
------ ------ ------ ------ ------ -----
Net asset value, end of period.......... $1.00 $1.00 $1.00 $1.00 $10.79 $10.66
====== ====== ====== ====== ====== =====
Total return ........................... 5.18% 5.06% 3.06% 2.67%(b) 6.59% 10.26%(b)
====== ====== ====== ====== ====== =====
Ratio (to average net assets)/
supplemental data:
Ratios net of fees waived by advisor (c):
Expenses .......................... 0.57% 0.51% 0.44% 0.43%(a) 0.94% 0.91%(a)
Net investment income ............. 5.14% 4.99% 2.97% 2.70%(a) 5.20% 5.20%(a)
Ratios assuming no waiver of
management fees by advisor (c):
Expenses .......................... 0.87% 0.81% 0.74% 0.73%(a) 1.24% 1.21%(a)
Net investment income ............. 4.84% 4.69% 2.67% 2.40%(a) 4.90% 4.74%(a)
Portfolio turnover rate ................ 0% 0% 0% 0% 8% 0%
Net assets at end of period (millions).. $15.8 $14.1 $12.3 $21.3 $ 6.3 $ 5.7
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO
---------------------------------------------------------------------------------
INCOME INCOME & GROWTH
-------------------------------------- ---------------------------------------
8-18-92 8-18-92
YEAR ENDED JUNE 30, TO YEAR ENDED JUNE 30, TO
1996 1995 1994 6-30-93 1996 1995 1994 6-30-93
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per share data (for a share
outstanding throughout each period):
Net asset value, beginning of period.... $9.78 $ 9.39 $10.43 $ 10.00 $11.57 $10.65 $10.96 $10.00
Income from investment operations:
Net investment income ............... 0.63 0.65 0.62 0.45 0.38 0.41 0.33 0.27
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions.............. (0.19) 0.39 (0.98) 0.45 1.27 1.54 (0.11) 0.96
----- ------ ------ ------ ------ ------ ------ ------
Total from investment
operations .................... 0.44 1.04 (0.36) 0.90 1.65 1.95 0.22 1.23
----- ------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment
income ........................... (0.63) (0.65) (0.62) (0.45) (0.37) (0.41) (0.33) (0.27)
Distributions from net realized
capital gains and foreign
currency transactions.............. 0.00 0.00 (0.06) (0.02) (0.07) (0.62) (0.20) 0.00
----- ------ ------ ------ ------ ------ ------ ------
Total distributions ............. (0.63) (0.65) (0.68) (0.47) (0.44) (1.03) (0.53) (0.27)
----- ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period.......... $9.59 $9.78 $ 9.39 $10.43 $12.78 $ 11.57 $10.65 $10.96
===== ====== ====== ====== ====== ====== ====== ======
Total return ........................... 4.61% 11.58% (3.79%) 9.56%(b) 14.50% 19.41% 1.96% 12.49%(b)
===== ====== ====== ====== ====== ====== ====== ======
Ratio (to average net assets)/
supplemental data:
Ratios net of fees waived by advisor (c):
Expenses .......................... 0.97% 0.85% 1.02% 1.11%(a) 0.89% 0.81% 0.94% 1.07%(a)
Net investment income ............. 6.50% 6.80% 6.10% 5.07%(a) 3.10% 3.69% 3.08% 3.09%(a)
Ratios assuming no waiver of
management fees by advisor (c):
Expenses .......................... 1.22% 1.10% 1.27% 1.36%(a) 1.14% 1.06% 1.19% 1.32 (a)
Net investment income ............. 6.25% 6.55% 5.85% 4.82%(a) 2.85% 3.44% 2.83% 2.84 (a)
Portfolio turnover rate ................ 9% 4% 6% 6% 7% 25% 14% 24%
Net assets at end of period (millions).. $ 7.0 $ 7.1 $ 4.6 $ 5.7 $10.8 $ 7.7 $ 7.5 $ 6.7
<FN>
(a) Annualized
(b) Calculated on an aggregate basis (not annualized).
(c) The advisor has elected to waive the entire management fee for the Money
Market Portfolio and one-half of the management fees for the Tax-Free
Income, Income, Income & Growth, and Small Cap Portfolios, but it may
cease those waivers, in whole or in part, without prior notice.
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 32
ONE FUND, INC. JUNE 30, 1996
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PORTFOLIO
----------------------------------------------------------------------
GROWTH SMALL CAP
---------------------------------------------- ------------------
8-18-92 YEAR 11-1-94
YEAR ENDED JUNE 30, TO ENDED TO
1996 1995 1994 6-30-93 6-30-93 6-30-95
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each
period:
Net asset value, beginning of period..................... $13.03 $11.67 $11.63 $10.00 $10.63 $10.00
Income from investment operations:
Net investment income................................... 0.14 0.16 0.12 0.12 0.26 0.22
Net realized and unrealized gain (loss) on investments
and foreign currency transactions...................... 2.72 2.17 0.22 1.69 2.26 0.67
------- ------- ------- ------ ------- -------
Total from investment operations...................... 2.86 2.33 0.34 1.81 2.52 0.89
------- ------- ------- ------ ------- -------
Less distributions:
Dividends from net investment income.................... (0.14) (0.16) (0.12) (0.12) (0.25) (0.22)
Distributions from net realized capital gains and
foreign currency transactions......................... (0.28) (0.81) (0.18) (0.06) (0.08) (0.04)
------- ------- ------- ------ ------- ------
Total distributions................................... (0.42) (0.97) (0.30) (0.18) (0.33) (0.26)
------- ------- ------- ------ ------- ------
Net asset value, end of period........................... $15.47 $13.03 $11.67 $11.63 $12.82 $10.63
======= ======= ======= ====== ======= ======
Total return............................................. 22.22% 20.54% 2.85% 18.26%(b) 24.10% 8.91%(b)
======= ======= ======= ====== ======= ======
Ratio (to average net assets)/
supplemental data:
Ratios net of fees waived by advisor (c,d):
Expenses.............................................. 0.90% 0.83% 1.04% 1.30%(a) 0.94% 1.00%(a)
Net investment income................................. 0.99 1.35% 1.04% 1.31 (a) 2.21% 3.19%(a)
Ratios assuming no waiver of management fees by advisor
(c,d):
Expenses.............................................. 1.15% 1.08% 1.30% 1.56%(a) 1.27% 1.31%(a)
Net investment income................................. 0.74% 1.10% 0.79% 1.06%(a) 1.88% 2.88%(a)
Portfolio turnover rate.................................. 22% 24% 8% 26% 34% 8%
Net assets at end of period (millions)................... $11.8 $7.0 $5.3 $4.3 $4.5 $2.9
<CAPTION>
INTERNATIONAL GLOBAL CONTRARIAN
--------------------------------------------- --------------------
8-18-92 YEAR 11-1-94
YEAR ENDED JUNE 30, TO ENDED TO
1996 1995 1994 6-30-93 6-30-96 6-30-95
------- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each
period:
Net asset value, beginning of period..................... $12.89 $13.32 $9.90 $10.00 $10.01 $10.00
Income from investment operations:
Net investment income................................... 0.10 0.14 0.05 0.03 0.16 0.17
Net realized and unrealized gain (loss) on investments
and foreign currency transactions..................... 2.24 0.63 4.01 (0.10) 1.61 0.13
------- ------- ------ ------ ------ -------
Total from investment operations...................... 2.34 0.77 4.06 (0.07) 1.77 0.30
------- ------- ------ ------ ------ -------
Less distributions:
Dividends from net investment income.................... (0.39) (0.114) (0.05) (0.03) (0.23) (0.17)
Distributions from net realized capital gains and
foreign currency transactions......................... (0.37) (1.08) (0.59) 0.00 (0.07) (0.12)
------- ------- ------ ------ ------ -------
Total distributions................................... (0.76) (1.20) (0.64) (0.03) (0.30) (0.29)
------- ------- ------ ------ ------ -------
Net asset value, end of period........................... $14.47 $12.89 $13.32 $9.90 $11.48 $10.01
======= ======= ====== ====== ====== =======
Total return............................................. 18.65% 6.44% 40.65% (0.68%)(b) 17.84% 2.99%(b)
======= ======= ====== ====== ====== =======
Ratio (to average net assets)/
supplemental data:
Ratios net of fees waived by advisor (c,d):
Expenses.............................................. 1.72% 1.50% 1.50% 2.32% (a) 2.14% 2.05%(a)
Net investment income................................. 0.70% 1.11% 0.46% 1.93% (a) 1.49% 2.85%(a)
Ratios assuming no waiver of management fees by advisor
(c,d):
Expenses.............................................. 1.72% 1.50% 1.50% 2.32% (a) 2.14% 2.05%(a)
Net investment income................................. 0.70% 1.11% 0.46% 1.93% (a) 1.49% 2.86%(a)
Portfolio turnover rate.................................. 20% 39% 27% 0% 26% 8%
Net assets at end of period (millions)................... $15.1 $12.0 $10.4 $3.2 $5.7 $3.9
<FN>
(a) Annualized
(b) Calculated on an aggregate basis (not annualized).
(c) The advisor has elected to waive the entire management fee for the Money
Market Portfolio and one-half of the management fees for the Tax-Free
Income, Income, Income & Growth, and Small Cap Portfolios, but it may cease
those waivers, in whole or in part, without prior notice.
(d) The advisor has reimbursed certain operating expenses of the International
and Global Contrarian Portfolios. Had the advisor not reimbursed such
expenses, the annualized ratio of expenses to net assets would have been
1.72%, 1.51%, 2.22% and 4.13% for the International Portfolio for the
periods ended June 30, 1996, June 30, 1995, June 30, 1994, June 30, 1993,
respectively, and 2.40% and 2.59% for the Global Contrarian Portfolio for
the periods ended June 30, 1996 June 30, 1995. The annualized ratio of net
investment income to net assets would have been .70%, (1.10%), (.26%) and
.12% for the International Portfolio for periods ended June 30, 1996, June
30, 1995, June 30, 1994, and June 30, 1993, respectively, and 1.23% and
(2.31%) for the Global Contrarian Portfolio for the periods ended June 30,
1996 and June 30, 1995.
The accompanying Notes are an integral part of these financial statements.
</TABLE>
<PAGE> 33
NOTES
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<PAGE> 34
ONE FUND, INC.
P.O. Box 371 THIRD CLASS BULK
Cincinnati, OH 45201 U.S. POSTAGE PAID
CINCINNATI, OHIO
Permit N. 117
Form 5837
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> MONEY MARKET
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
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<SHARES-REINVESTED> 0
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
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<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.05)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> TAX-FREE INCOME
<S> <C>
<PERIOD-TYPE> 8-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 0
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
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<PER-SHARE-NAV-BEGIN> 10.66
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<PER-SHARE-DIVIDEND> (0.56)
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 10.79
<EXPENSE-RATIO> 0.94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> INCOME
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
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<PER-SHARE-NAV-BEGIN> 9.78
<PER-SHARE-NII> 0.63
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<PER-SHARE-NAV-END> 9.59
<EXPENSE-RATIO> 0.97
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> INCOME & GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
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<PER-SHARE-NAV-END> 12.78
<EXPENSE-RATIO> 0.89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
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<REALIZED-GAINS-CURRENT> 0
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<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
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<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
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