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Previous: CASTELLE \CA\, 10QSB/A, 1996-09-05 |
Next: TIMELINE INC, 10KSB/A, 1996-09-05 |
<PAGE> 1
THE ONE(R) GROUP(SM) INVESTMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1996
<PAGE> 2
THE ONE(R) GROUP(SM) INVESTMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1996
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Statements of Investments:
Government Bond.........................1
Asset Allocation........................2
Growth Opportunities....................6
Large Company Growth...................10
Statements of Assets and Liabilities........12
Statements of Operations....................13
Statements of Changes in Net Assets.........14
Financial Highlights........................16
Notes to Financial Statements...............18
</TABLE>
<PAGE> 3
<TABLE>
GOVERNMENT BOND
Statement of Investments -- June 30, 1996 (Unaudited)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (27.2%)
$ 500,000 Federal Farm Credit Bank Bond, 8.65%, 1999 $ 530,344
340,000 U.S. Treasury Bond, 5.50%, 1998 334,687
1,000,000 U.S. Treasury Bond, 6.25%, 2023 905,936
900,000 U.S. Treasury Note, 7.50%, 2001 939,375
750,000 U.S. Treasury Note, 6.50%, 2005 738,750
-----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 3,449,092
(cost $3,555,436) -----------
MORTGAGE BACKED SECURITIES (64.9%)
703,771 FHLMC GOLD 5Y, 6.50%, 2001 696,953
379,973 FHLMC GOLD 15Y, 8.50%, 1999 392,337
313,897 FHLMC GOLD 15Y, 6.50%, 2011 303,401
996,764 FHLMC GOLD 15Y, 7.00%, 2011 982,746
972,138 FHLMC GOLD 30Y, 8.00%, 2024 980,940
993,067 FHLMC GOLD 30Y, 6.50%, 2025 930,372
892,581 FNMA 15Y, 7.50%, 2009 896,206
481,302 FNMA 30Y, 6.50%, 2025 450,354
1,015,901 FNMA 30Y, 6.50%, 2026 950,176
679,593 GNSF 30Y, 7.50%, 2023 669,606
127,804 GNSF 30Y, 7.00%, 2025 122,571
886,800 GNSF 30Y, 7.00%, 2025 850,489
-----------
TOTAL MORTGAGE BACKED SECURITIES 8,226,151
(cost $8,344,631) -----------
REPURCHASE AGREEMENT (7.0%)
892,000 Lehman Government Securities Inc.,
5.51%, due 07/01/96, Collateralized by
$915,000 FNFR, due 06/20/97, market value $914,817 892,000
(cost $892,000) -----------
TOTAL INVESTMENTS $12,567,243
(cost $12,792,067) ===========
- -------------------
<FN>
Cost also represents cost for Federal income tax purposes.
The abbreviations in the above statement stand for the following:
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNSF Ginnie Mae Single Family
FNFR Fannie Mae Floating Rate Note
Portfolio holding percentages reprresent market value as a percentage of net assets.
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 1
<PAGE> 4
<TABLE>
ASSET ALLOCATION
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (50.4%)
AEROSPACE/DEFENSE (1.3%)
600 Boeing Company (The) $ 52,275
400 Lockheed Martin Corp. 33,600
400 Thiokol Corp. Del 15,800
300 United Technologies Corp. 34,500
----------
136,175
----------
ALUMINUM (0.2%)
800 Alumax, Inc.* 24,300
----------
AUTOMOBILES (0.9%)
800 General Motors Corp. 41,900
1,600 Ford Motor Co. 51,800
----------
93,700
----------
BANKS (2.2%)
800 BankAmerica Corp. 60,600
600 Charter One Financial, Inc. 20,925
1,100 Chase Manhatten Corp. 77,688
400 Nationsbank Corp. 33,050
600 SouthTrust Corp. 16,875
400 Washington Mutual, Inc. 11,950
----------
221,088
----------
BUSINESS SERVICES (0.6%)
1,100 Manpower, Inc. 43,175
700 Olsten Corp. (The) 20,563
----------
63,738
----------
CHEMICALS (1.1%)
200 Du Pont (E.I.) DeNemours & Co. 15,825
200 Eastman Chemical Co. 12,175
800 IMC Global, Inc. 30,100
800 Nalco Chemical Co. 25,200
500 Sigma-Aldrich Corp. 26,750
----------
110,050
----------
COMMUNICATION-EQUIP/MANUF (0.5%)
1,100 SBC Communications Inc. 54,175
----------
COMPUTER EQUIPMENT (1.0%)
800 Cisco Systems 45,300
500 Hewlett-Packard Co. 49,812
1,000 Humana Inc. Com* 17,875
300 International Business Machines 29,700
----------
142,687
----------
COMPUTER SOFTWARE (1.0%)
700 Adobe Systems 25,112
800 Autodesk 23,900
200 Electronic Data Systems. 10,750
1,000 Oracle Corp.* 39,438
----------
99,200
----------
CONGLOMERATES (0.5%)
800 EG&G, Inc. 17,100
500 Rockwell International Corp. 28,625
----------
45,725
----------
CONSUMER CYCLICALS (0.1%)
900 Station Casinos Cm. * 12,937
----------
CONSUMER NON DURABLES (0.7%)
600 RJR Nabisco Holding Corp. 18,600
1,046 Smith's Food & Drug Center Cl B 24,973
800 UST, Inc. 27,400
----------
70,973
----------
CONSUMER PRODUCTS (0.4%)
1,400 Newell Co. 42,875
----------
DRUGS (0.9%)
800 Baxter International Corp. 37,800
1,000 Pharmacia & Upjohn Inc. Com. 44,375
200 Schering - Plough Corp. 12,550
----------
94,725
----------
ELECTRONICS (1.3%)
1,000 Intel Corp. 73,437
400 Johnson Controls Inc. 27,800
500 Motorola, Inc. 31,438
----------
132,675
----------
ENERGY (0.7%)
300 Eneron Corp. 12,263
500 Halliburton Co. 27,750
1,300 Tosco Corp. 15,075
300 Rowan Companies* 19,175
----------
74,263
----------
ENTERTAINMENT (0.6%)
900 Disney, Walt Co. 56,587
----------
FINANCIAL (3.8%)
900 Allstate Corp. 41,063
500 American Express Co. 22,313
600 Bancorp Hawaii, Inc. 21,600
1,900 Federal National Mortgage Assoc. 63,650
1,000 First Chicago NBD 39,125
1,000 Keycorp 38,750
600 Mid Ocean LTD 24,600
400 Morgan JP & Co., Inc. 33,850
700 Ryder Systems, Inc. 19,687
600 SAFECO Corp. 21,225
400 Torchmark Corp. 17,500
1,050 Travelers Group, Inc. 47,906
----------
391,269
----------
2 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
</TABLE>
<PAGE> 5
<TABLE>
ASSET ALLOCATION
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOOD & BEVERAGES (2.7%)
1,800 Coca Cola Co. $ 87,975
2,000 PepsiCo, Inc. 70,750
1,100 Philip Morris Companies, Inc. 114,400
----------
273,125
----------
HEALTH CARE (3.1%)
1,200 Abbott Laboratories 52,200
700 Amgen, Inc. * 37,800
400 Cardinal Health 28,850
700 Medtronic, Inc. 39,200
1,500 Merck & Co., Inc. 96,937
300 Pacificare Health System ClA * 19,800
1,100 Tenet Healthcare * 23,513
500 Watson Phamaceuticals * 18,938
----------
317,238
----------
HEALTHCARE SERVICES (0.5%)
900 Columbia/HCA Health 48,038
----------
HEALTH MANAGEMENT (0.2%)
600 Foundation Health Corp. 21,525
----------
HOTELS-MOTELS (0.3%)
1,100 Carnival Corp. ClA 31,762
----------
HOUSEHOLD PRODUCTS (0.9%)
500 Colgate-Palmolive Co. 42,375
500 Procter & Gamble Co. 45,313
----------
87,688
----------
INDUSTRIAL COMMODITIES (0.6%)
500 BJ Services 17,563
800 Ferro Corp. 21,200
400 Union Carbide Corp. 15,900
----------
54,663
----------
INSURANCE (1.2%)
1,100 Ball Corporation 31,625
800 Cyprus Amax Minerals 18,100
400 Mead Corporation 20,750
700 Providian Corporation 30,013
1,000 Schulman A. Inc. 24,500
----------
124,988
----------
LEISURE TIME INDUSTRY (0.4%)
1,100 Calloway Golf Co. 36,575
----------
MACHINERY & CAPITAL GOODS (3.6%)
800 Browning Ferris Industries 23,200
700 Crane Co. 28,700
1,400 General Electric Co. 121,100
600 Harnischfeger Industry, Inc. 19,950
500 ITT Hartford Group 26,625
900 Jacobs Energy Group * 23,737
1,235 Mark IV Industries Inc. 27,942
600 Tenneco Inc. 30,675
900 Tyco International LTD 36,675
500 York International Corp. 25,875
----------
364,479
----------
MANUFACTURING & CONSUMER GOODS (0.7%)
1,200 Keystone International, Inc. 24,900
700 Premark International, Inc. 12,950
700 Tupperware Corp.* 29,575
----------
67,425
----------
MEDICAL PRODUCTS (0.3%)
500 Nellcor Puritan Bennett Inc. * 24,250
----------
MOTOR VEHICLES (0.3%)
700 Harley Davidson Inc. 28,787
----------
OIL & GAS (3.7%)
600 Amoco Corp. 43,425
300 Atlantic Richfield 35,550
600 Devon Energy Corp. 14,700
1,000 Exxon Corp. 86,875
200 Mapco Corp. 11,275
500 Mobil Corp. 56,062
500 Royal Dutch Petroleum Co. 76,875
300 Texaco, Inc. 25,163
400 Tidewater, Inc. 17,550
600 Union Pacific Res Group, Inc. 16,050
----------
383,525
----------
OIL & GAS: EQUIP & SERV (0.3%)
800 Baker Hughes, Inc. 26,300
----------
POLLUTION CONTROL (0.3%)
1,700 BWP-IP Holding, Inc. 32,300
----------
PRINTING & PUBLISHING (0.5%)
700 American Greetings ClA 19,163
800 Time Warner, Inc. 31,400
----------
50,563
----------
RESTAURANTS (0.7%)
1,100 McDonalds Co. 51,425
1,000 Wendy's International, Inc. 18,625
----------
70,050
----------
RETAIL (3.1%)
1,100 Carson Pirie Scott & Co. Ill * 29,425
800 Dillard Department Stores ClA 29,200
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 3
<PAGE> 6
ASSET ALLOCATION
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------
SHARES SECURITY VALUE
- -------------------------------------------------------------
<S> <C> <C>
RETAIL (CONTINUED)
1,500 Donnkenny, Inc.* $ 29,250
900 Gymboree Corp.* 27,450
800 Kohls Corp.* 29,300
400 Loews Corp. 31,550
900 Lowe's Companies 32,513
1,100 SUPERVALU, Inc. 34,650
3,100 Wal-Mart Stores, Inc. 78,662
----------
322,000
----------
SEMICONDUCTORS (0.5%)
400 Lattice Semiconductors * 9,650
600 LSI Logic Corp. * 15,600
1,500 National Semiconductors * 23,250
----------
48,500
----------
SHOES (0.3%)
600 Nine West * 30,675
----------
TECHNOLOGY (2.3%)
1,200 Analog Devices * 30,600
700 Informix Corp. * 15,750
800 Microsoft Corp. * 96,100
400 Seagate Technology * 18,000
1,100 Silicon Graphics, Inc. * 26,400
700 Sun Microsystems, Inc. * 41,212
----------
228,062
----------
TELECOMMUNICATIONS (3.3%)
2,100 AT & T Corp. 130,200
1,300 Bellsouth Corp. 55,087
1,500 GTE Corp. 67,125
1,000 MCI Communications Corp. 25,625
1,300 Sprint Corp. 54,600
----------
332,637
----------
TOBACCO (0.2%)
500 American Brands Inc. 22,687
----------
TRANSPORTATION (0.5%)
900 American President Cos. LTD 23,513
1,200 U.S. Freightway 23,400
900 Valujet Inc.* 8,493
----------
55,406
----------
UTILITIES (2.1%)
800 Allegheny Power System, Inc. 24,700
1,100 Central& Southwest Corp. 31,900
1,000 Cinergy Corp. 32,000
2,000 Edison International 35,250
800 General Public Utilities Corp. 28,200
1,200 New York St. Electric & Gas Corp. 29,250
800 Texas Utlities Co. 34,200
----------
215,500
----------
TOTAL COMMON STOCKS
(cost $4,681,647) 5,165,890
----------
<CAPTION>
- -------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- -------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS (5.8%)
BROKER-DEALERS (2.0%)
$200,000 Lehman Brothers Holdings, Inc.
8.875%, due 11/01/98 209,152
DIVERSIFIED FINANCE (1.9%)
100,000 Associates Corp. of North America
6.125%, due 02/01/98 99,702
250,000 Chrysler Financial Corp.
5.875%, due 02/07/01 239,946
TELECOMMUNICATIONS (1.9%)
200,000 Ohio Bell Telephone Co.
5.75%, due 05/01/00 193,657
----------
TOTAL CORPORATE BONDS 742,457
(cost $737,394) ----------
MORTGAGE BACKED SECURITIES (3.2%)
200,000 Advanta Mortgage Loan Trust 94-3A2
7.60%, due 07/25/10 202,336
149,667 FNMA Pool #270725
7.00%, due 08/01/25 126,584
----------
TOTAL MORTGAGE BACKED SECURITIES 328,920
(cost $328,314) ----------
U.S. GOVERNMENT OBLIGATIONS (21.2%)
25,000 U.S. Treasury Bill, 4.99%,
due 07/11/96 24,966
425,000 U.S. Treasury Bond, 7.825%,
due 02/15/21 465,641
</TABLE>
4 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 7
ASSET ALLOCATION
STATEMENT OF INVESTMENTS--JUNE 30, 1996 (UNAUDITED) CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
- -------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (CONTINUED)
$ 700,000 U.S. Treasury Note, 5.25%,
due 01/31/01 $ 668,062
975,000 U.S. Treasury Note, 7.25%,
due 05/15/04 1,009,428
-------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS 2,168,097
(cost $2,222,203) -------------
REPURCHASE AGREEMENTS (21.6%)
334,270 Aubrey Lanston Securities,**
5.45%, due 07/01/96, Collateralized by
$330,000 U.S. Treasury Note, 6.38%, due
06/30/97, market value $341,880 334,270
1,442,000 Lehman Government Securities, Inc.,
5.51%, due 07/01/96, Collateralized by
$295,000 FHLB, due 06/12/06,
market value $294,466, and
$1,180,000 FNFR, due 06/20/97,
market value $1,179,764 1,442,000
-------------
TOTAL REPURCHASE AGREEMENTS 1,776,270
(cost $1,776,270) -------------
TOTAL INVESTMENTS $10,181,634
(cost $9,745,828) =============
- ----------------------------------------
<FN>
* Denotes a non-income producing security.
** Security is segregated as collateral on futures contract.
The abbreviations in the above statement stand for the following:
FNMA Federal National Mortgage Association
FHLB Federal Home Loan Bank
FNFR Fannie Mae Floating Rate Note
Cost also represent cost for Federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
STATEMENT OF COVERED APPRECIATION
FINANCIAL FUTURES NUMBER OF CONTRACTS BY CONTRACTS EXPIRATION AT 06/30/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 1 $338,400 September 1996 $4,515
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 5
<PAGE> 8
<TABLE>
GROWTH OPPORTUNITIES
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (84.5%)
AIR TRANSPORTATION (0.7%)
2,500 Atlantic S'Estrn Airlines, Inc. $ 70,625
400 Atlas Air, Inc.* 23,000
----------
93,625
----------
APPAREL (1.0%)
1,400 Jones Apparel Group* 68,775
1,200 Nine West* 61,350
400 Warnaco Group, Inc 10,300
----------
140,425
----------
BANKS (2.0%)
4,700 Imperial Credit Industries, Inc.* 142,175
2,700 State Street Boston Corp. 137,700
----------
279,875
----------
BROADCASTING (1.1%)
1,100 American Radio Systems Corp.* 47,300
600 Belo AH Corp., Series A 22,350
1,400 Chancellor Broadcasting * 43,750
1,000 Home Shopping Network, Inc.* 12,000
800 TCA Cable TV, Inc. 24,200
----------
149,600
----------
BUSINESS EQUIPMENT & SERVICES (7.5%)
300 Accustaff, Inc.* 8,175
2,600 AES Corp.* 73,450
300 Childtime Learning Centers, Inc.* 3,225
800 Cintas Corp. 96,300
1,700 Corestaff, Inc.* 76,075
1,300 First USA Paymentech* 52,000
800 Flighsafety International, Inc. 43,400
900 Jacobs Engineering Group* 23,738
900 Manpower, Inc. 35,325
5,500 Office Depot, Inc.* 112,062
2,800 Omnicom Group, Inc. 130,200
1,400 Reynolds & Reynolds 74,550
1,500 Riscorp. Inc.* 27,375
600 Service Corp. Intl. 34,500
5,100 Staples Inc.* 99,450
900 Sterling Commerce* 33,412
1,000 USA Waste Services, Inc.* 29,625
3,000 Viking Office Products, Inc.* 94,125
300 Wallace Computer Serv. , Inc. 17,925
----------
1,064,912
----------
CAPITAL EQUIPMENT (2.9%)
1,850 Diebold Inc. 89,262
400 Foster Wheeler Corp. 17,950
1,900 Sundstrand Corp. 69,588
5,700 Thermo Electron Corp.* 237,262
300 Thermo Sentron Inc.* 4,800
----------
418,862
----------
CHEMICALS-PETROLEUM & INORGANIC (0.4%)
2,400 Lyondell Petrochemical Co. 57,900
----------
CHEMICALS-SPECIALTY (1.3%)
2,300 Cabot Corp. 56,350
1,000 Loctite Corp. 46,500
1,300 RPM Inc. Ohio 20,313
1,000 Vulcan Materials Co. 59,375
----------
182,538
----------
COMMUNICATION EQUIPMENT (5.3%)
2,900 A D C Telecommunications, Inc.* 130,500
300 Bay Networks, Inc.* 7,725
1,100 DSP Communications, Inc.* 56,512
500 Fastcomm Communications Corp.* 9,063
2,100 Gandalf Technologies* 16,800
400 Lucent Technologies, Inc. 15,150
800 Newbridge Networks Corp.* 52,400
1,700 Octel Communications Corp.* 33,575
300 Paging Network, Inc.* 7,200
500 PairGain Technology, Inc.* 31,000
1,300 Panamsat Corp.* 37,700
2,800 Stratacom, Inc. 157,500
1,400 Symbol Technology, Inc.* 62,300
1,200 Tellabs, Inc.* 80,250
1,700 Vanguard Cellular* 36,975
500 Xylan Corp.* 23,250
----------
757,900
----------
COMPUTERS-MICRO (1.6%)
3,800 Dell Computer Corp.* 193,325
600 Sun Microsystems, Inc.* 35,325
----------
228,650
----------
COMPUTERS-PERIPHERAL (11.9%)
3,300 Adobe Systems, Inc. 118,387
900 Amati Communications Corp.* 17,887
2,100 BMC Software, Inc.* 125,475
1,300 Boca Research, Inc. 23,725
5,100 Cadence Design System, Inc.* 172,125
2,000 Cisco Systems, Inc.* 113,250
1,300 Compuware Corp.* 51,350
1,500 Electronic Arts, Inc.* 40,125
300 Filenet Corp.* 10,950
500 Identix, Inc.* 7,312
300 Imnet Systems, Inc.* 9,150
7,700 Informix Corp.* 173,250
1,800 JDA Software Group* 37,125
2,400 Mentor Graphics Corp.* 39,000
2,200 Micro Warehouse, Inc.* 44,000
5,100 Parametric Technology Corp.* 221,212
600 Sterling Software, Inc.* 46,200
</TABLE>
6 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 9
<TABLE>
GROWTH OPPORTUNITIES
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED) CONTINUED
<CAPTION>
- -------------------------------------------------------------------------------
SHARES SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER-PERIPHERALS (CONTINUED)
1,000 Structural Dynamics Research* $ 22,000
1,000 Symantec Corp.* 12,500
4,500 U. S. Robotics Corp.* 384,750
700 Vanstar Corp.* 11,725
1,000 Wonderware Corp.* 18,875
----------
1,700,373
----------
CONTRUCTION MATERIALS (0.4%)
500 Carbo Ceramics, Inc.* 11,000
1,000 Fastenal Co. 43,500
----------
54,500
----------
ELECTRONIC COMPONENTS (5.6%)
1,300 Altera Corp.* 49,400
4,650 Analog Devices, Inc.* 118,575
4,500 Atmel Corp.* 135,562
1,700 Cirrus Logic, Inc.* 29,750
1,000 Cree Research, Inc.* 15,000
2,600 Integrated Device Tech.* 27,625
200 Linear Technology Corp. 66,000
2,300 Maxim Integrated Products* 62,819
4,300 Microchip Technology* 106,425
1,500 Silicon Storage Technology, Inc.* 20,625
2,000 Solectron Corp.* 75,750
400 Stanford Telecom, Inc.* 22,500
315 Vishay Intertechnology, Inc. 7,442
1,900 Xilinx, Inc.* 60,325
----------
797,798
----------
ELECTRONIC INSTRUMENTS (0.7%)
1,500 Checkfree Corp.* 29,813
1,600 Teradyne, Inc.* 27,600
200 Thermoquest Corp.* 2,775
900 Ultratech Stepper Inc.* 16,875
500 Varian Association, Inc. 25,875
----------
102,938
----------
ELECTRICAL EQUIPMENT (0.7%)
600 Compucom Systems, Inc.* 6,525
1,700 Federal Signal Co. 39,950
85 Mark IV Industries, Inc. 1,923
1,000 York International Corp. 51,750
----------
100,148
----------
FINANCE COMPANIES (0.5%)
400 Jayhawk Acceptance Corp.* 5,450
300 Money Store Inc. 6,638
3,500 Southern Pacific FDG* 61,250
----------
73,338
----------
FOOD & RELATED (0.8%)
2,600 IBP Inc. 71,825
1,400 Richfood Holdings, Inc. 45,500
----------
117,325
----------
FOREST/PAPER PRODUCTS (0.9%)
1,200 Sealed Air Corp.* 40,350
3,100 Sonoco Products Co. 87,962
----------
128,312
----------
FURNITURE/FURNISHINGS (0.5%)
2,400 Leggett & Platt 66,600
----------
GAMING/HOTEL (3.1%)
5,000 HFS Inc.* 350,000
1,000 Mirage Resorts, Inc.* 54,000
400 Promus Hotel Corp.* 11,850
500 Red Lion Hotels, Inc.* 10,500
300 Showboat, Inc. 9,037
----------
435,387
----------
HEALTHCARE-DRUGS (5.7%)
500 Amerisource Health Corp., Class A* 16,625
200 Arterial Vascular Engineering, Inc.* 7,250
1,800 Biogen, Inc.* 98,775
1,500 Chiron Corp.* 147,000
2,100 Cardinal Health, Inc. 151,462
1,600 Forest Labs Inc. Class A* 61,800
1,510 Genzyme Corp.* 75,878
4,200 Ivax Corp. 66,675
1,700 Lifecore Biomedical* 36,125
3,700 Mylan Labs, Inc. 63,825
2,100 Watson Pharmaceuticals* 79,537
----------
804,952
----------
HEALTHCARE GENERAL (1.6%)
2,100 Apria Healthcare Group* 65,888
400 Beckman Industries, Inc. 15,200
2,200 Centocor, Inc.* 65,725
102 Johnson & Johnson Co. 5,049
1,500 Inphynet Medical Mgmt Inds.* 28,125
50 Multicare Companies, Inc.* 950
900 Nellcor Puritan Bennett, Inc.* 43,650
400 Value Health, Inc.* 9,450
----------
234,037
----------
HOME BUILDING-MOBILE HOMES (0.6%)
2,975 Clayton Homes Inc. 59,500
900 Oakwood Homes Corp. 18,562
500 Premier Parks Inc.* 10,750
----------
88,812
----------
HOSPITAL SUPPLY & MANAGEMENT (4.5%)
400 American Oncology Research, Inc.* 8,700
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 7
<PAGE> 10
<TABLE>
GROWTH OPPORTUNITIES
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED) CONTINUED
<CAPTION>
- -------------------------------------------------------------------------------
SHARES SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
HOSPITAL SUPPLY
& MANAGEMENT (CONTINUED)
2,200 Foundation Health Corp.* $ 78,925
1,250 Healthcare Compare Corp. * 60,938
1,500 Health Care & Retirement* 35,625
1,500 Health Management Systems, Inc.* 47,625
2,600 Healthsource, Inc.* 45,500
4,300 HealthSouth Corp.* 154,800
200 Heartport, Inc.* 6,050
2,200 Medaphis Corp.* 87,450
500 Phymatrix Corp.* 11,625
50 Physicians Resource* 1,669
1,600 Stryker Corp. 36,400
2,400 Vencor, Inc.* 73,200
----------
648,507
----------
HOUSEHOLD-GEN. PRODUCTS (0.1%)
600 BMC Industries, Inc. 17,250
----------
INSURANCE-LIFE (2.0%)
3,900 AFLAC, Inc. 116,513
2,000 Sunamerica, Inc. 113,000
2,200 Travelers - Aetna Property/Casualty* 62,425
----------
291,938
----------
LEISURE TIME INDUSTRY (0.9%)
1,700 Callaway Golf Co. 56,525
4,300 International Game Technology 72,562
50 Loewen Group, Inc. 1,513
----------
130,600
----------
METAL FABRICATION (0.1%)
300 Precision Castparts Corp. 12,900
----------
MOTOR VEHICLES (0.8%)
2,900 Harley Davidson, Inc. 119,262
----------
MOTOR VEHICLE PARTS (0.6%)
2,000 Danaher Corp. 87,000
----------
MULTIPLE INDUSTRY (1.4%)
7,600 American Portable Telecom, Inc.* 81,700
3,000 Boston Communication Group* 49,500
100 Edify Corp.* 2,650
1,600 May & Speh Inc.* 25,200
200 Open Market Inc.* 4,875
800 Security First Network Bank, Pineville* 26,400
300 Whittman - Hart, Inc.* 10,800
----------
201,125
----------
PETROLEUM-DOMESTIC (1.6%)
2,600 Anadarko Petroleum Corp. 150,800
2,100 Noble Affiliates, Inc. 79,275
----------
230,075
----------
PETROLEUM SERVICES (1.4%)
800 BJ Services* 28,100
6,000 Global Marine* 83,250
700 Tidewater 30,712
2,100 Weatherford Enterra* 63,000
----------
205,062
----------
PUBLISHING (0.2%)
400 Scholastic Corp.* 24,800
----------
RAILROAD (0.9%)
1,800 Illinois Central Corp. Ser. A 51,075
1,700 Kansas City Southern Industries 72,888
----------
123,963
----------
REITS (0.5%)
6,300 Sunstone Hotel Invs., Inc. 68,513
----------
RESTAURANTS (0.8%)
1,300 Lone Star Steakhouse Saloon* 49,075
200 Longhorn Steaks, Inc.* 5,000
1,300 Outback Steakhouse * 44,830
400 Planet Hollywood International Inc.* 10,800
----------
109,705
----------
RETAIL-GENERAL MERCHANDISE (1.0%)
2,025 Dollar General Corp. 59,231
2,400 Kohls Corp.* 87,900
----------
147,131
----------
RETAIL-SPECIALTY (1.0%)
2,900 Bed Bath and Beyond* 77,575
800 Tiffany and Co. 58,400
----------
135,975
----------
SAVINGS & LOANS (0.1%)
200 Coast Savings Financial 6,550
----------
SECURITY & COMMERCIAL BROKER (3.3%)
2,900 Franklin Resources, Inc. 176,900
2,400 Price, T. Rowe & Associates, Inc. 73,800
4,800 Resource Bancshares* 58,200
6,700 Schwab, (Charles) Corp. 164,150
----------
473,050
----------
UTILITIES-TELEPHONE (2.2%)
2,900 360 Communications Co.* 69,600
800 Century Telephone Enterprises, Inc. 25,500
6,500 Frontier Corp. 199,063
300 Worldcom, Inc.* 16,612
----------
310,775
----------
</TABLE>
8 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 11
GROWTH OPPORTUNITIES
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------
SHARES SECURITY VALUE
- -------------------------------------------------------------
<S> <C> <C>
TIMESHARE & SOFTWARE (4.3%)
3,900 America Online, Inc.* $ 170,625
5,400 Equifax Inc. 141,750
1,800 Fiserv Inc.* 54,000
1,300 HNC Software* 60,125
3,100 Paychex Inc. 149,188
700 Verifone, Inc.* 29,575
500 Zebra Technologies Corp.* 8,875
-----------
614,138
-----------
TOTAL COMMON STOCKS 12,037,127
(cost $11,889,561) -----------
U. S. GOVERNMENT OBLIGATIONS (0.5%)
U.S. Treasury Bills,
20,000 4.935%, due 07/11/96 $ 19,972
40,000 4.870%, due 07/18/96 39,908
15,000 4.98%, due 08/01/96 14,936
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS 74,816
(cost $74,816) -----------
REPURCHASE AGREEMENTS (15.0%)
668,540 Aubrey Lanston Securities **
5.45%, due 07/01/96, Collateralized by
$659,000 U.S. Treasury Note, 6.38%, due
06/30/97, market value $682,724 668,540
1,461,000 Lehman Government Securities Inc.,
5.51% due 07/01/96, Collateralized by
$1,495,000 FHLB, due 06/12/06,
market value $1,492,294 1,461,000
-----------
TOTAL REPURCHASE AGREEMENT 2,129,540
(cost $2,129,540) -----------
TOTAL INVESTMENTS $14,241,483
(cost $14,093,917) ===========
<FN>
- --------------
* Denotes a non-income producing security.
** Security is segregated as collateral on futures contract.
Cost for Federal income tax purposes: $14,127,804.
The abbreviation in the above statement stands for the following:
FHLB Federal Home Loan Bank
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
STATEMENT OF COVERED APPRECIATION
FINANCIAL FUTURES NUMBER OF CONTRACTS BY CONTRACTS EXPIRATION AT 06/30/96
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 2 $676,800 September 1996 $7,080
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 9
<PAGE> 12
LARGE COMPANY GROWTH
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
===============================================================================
SHARES SECURITY VALUE
===============================================================================
<S> <C> <C>
COMMON STOCKS (93.1%)
ADVERTISING (0.8%)
6,200 Interpublic Group Cos, Inc. $ 290,625
---------
BUILDING (0.8%)
8,000 Masco Corp. 242,000
---------
CHEMICALS (3.8%)
6,000 Air Products & Chemicals, Inc. 346,500
3,200 Dow Chemical Co. 243,200
7,200 Nalco Chemical Co. 226,800
12,800 Pall Corp. 308,800
---------
1,125,300
---------
COMPUTER SOFTWARE & SERVICES (3.5%)
11,200 Automatic Data Processing Inc. 432,600
6,700 Electronic Data Systems 360,125
6,350 Oracle Corp. 250,427
---------
1,043,152
---------
CONGLOMERATES (3.0%)
5,400 Eastman Kodak Co. 419,850
6,700 Minnesota Mng & Mfg. 462,300
---------
882,150
---------
CONSUMER NON DURABLE (14.5%)
5,100 Anheuser-Busch Co. 382,500
10,900 Coca Cola Co. 532,736
5,200 CPC International, Inc. 374,400
48 Earthgrains Company 1,572
10,400 Heinz (H.J) Company 315,900
5,100 Hershey Foods Corp. 374,212
7,200 International Flavor 342,900
4,800 Kellog Co. 351,600
5,700 Kimberly Clark Corp. 440,325
15,000 Pepsico, Inc. 530,625
4,400 Pioneer Hi Bred Intl 232,650
2,800 Unilever N. V. 406,350
---------
4,285,770
---------
ENGINEERING AND CONSTRUCTION (1.4%)
4,400 Fluor Corp. 287,650
---------
ENTERTAINMENT (2.1%)
5,200 Disney, Walt Co. 326,950
7,200 Time Warner, Inc. 282,600
---------
609,550
---------
FINANCIAL (5.8%)
4,650 American International Group, Inc. 458,606
4,800 St. Paul Cos. Inc. 256,800
3,800 Marsh & McLennan Cos., Inc. 366,700
4,400 Morgan J P & Co., Inc. 372,350
7,200 U.S. Bancorp 260,100
---------
1,714,556
---------
HEALTHCARE (16.4%)
12,100 Abbott Laboratories 526,350
10,200 Alza Corp.* 279,225
6,800 Bard C R, Inc. 231,200
5,700 Biomet, Inc. 81,938
5,900 Cardinal Health 425,538
8,000 Columbia/HCA Health 427,000
5,200 Elan Plc ADR * 297,050
10,400 Humana Inc. 185,900
11,500 Johnson & Johnson 569,250
7,200 Medtronic, Inc. 403,200
9,600 Merck & Co. 620,400
6,400 Pfizer, Inc. 456,800
8,300 Pharmacia & Upjohn Inc. 368,313
---------
4,872,164
---------
HOUSEHOLD PRODUCTS (3.5%)
5,700 Colgate-Palmolive Co. 483,075
6,200 Proctor & Gamble Co. 561,875
---------
1,044,950
---------
MACHINERY & CAPITAL GOODS (6.3%)
6,500 Echlin Inc. 246,188
5,600 Emerson Electric Co. 506,100
7,700 General Electric Co. 666,050
3,500 Illinois Tools Works 236,688
5,100 Ingersoll Rand Co. 223,125
---------
1,878,151
---------
MINING-UNITED STATES (0.6%)
8,000 Cyprus Amax Minerals Co. 181,000
---------
OIL & GAS (4.2%)
3,500 Consolidated Natural Gas 182,875
4,400 Halliburton Co. 244,200
2,800 Mobil Corp. 313,950
3,200 Schlumberger Ltd. 269,600
6,400 Unocal Corp. 216,000
---------
1,226,625
---------
PAPER AND FOREST PRODUCTS (0.8%)
4,400 Consolidated Papers, Inc. 228,800
---------
POLLUTION CONTROL (1.2%)
10,400 WMX Technologies 340,600
---------
PRINTING & PUBLISHING (3.7%)
4,100 Dun & Bradstreet Corp. 256,250
6,700 Gannett, Inc. 474,025
</TABLE>
10 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 13
LARGE COMPANY GROWTH
STATEMENT OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
PRINTING & PUBLISHING (CONTINUED)
8,000 McGraw Hill Companies Inc. $ 366,000
-----------
1,096,275
-----------
RESTAURANTS (1.4%)
8,600 McDonalds 402,050
-----------
RETAIL (4.1%)
8,800 Home Depot, Inc. 475,200
12,000 Walgreen Co. 402,000
13,600 Wal Mart Stores, Inc. 345,100
-----------
1,222,300
-----------
RETAIL-SPECIALTY (0.6%)
7,200 Intimate Brands, Inc. 164,700
-----------
TECHNOLOGY (7.9%)
10,200 AMP, Inc. 409,275
2,600 Hewlett-Packard Co 259,025
3,200 Intel Corp. 235,000
2,900 International Business Machines Corp. 287,100
5,900 Molex, Inc. 187,325
7,200 Motorola, Inc. 452,700
7,200 Silicon Graphics, Inc.* 172,800
5,900 Texas Instruments, Inc. 294,263
-----------
2,297,488
-----------
TELECOMMUNICATIONS (4.3%)
8,900 Alltel Corp. 273,675
10,200 AT & T Corp. 632,400
8,000 GTE Corp. 358,000
-----------
1,264,075
-----------
TRANSPORTATION (2.4%)
11,200 Ryder Systems, Inc. 315,000
5,600 Union Pacific Corp. 391,300
-----------
706,300
-----------
TOTAL COMMON STOCKS 27,406,231
(cost $24,853,132) -----------
<CAPTION>
- ------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT (6.9%)
$2,043,000 Lehman Government Securities Inc.,
5.51%, due 07/01/96, Collateralized by
$1,270,000 FHLB, due 06/12/06, market value
$1,267,701, and $825,000 FHLMC,
due 12/30/02, market value $816,239 2,043,000
(cost $2,043,000) -----------
TOTAL INVESTMENTS $29,449,231
(cost $26,896,132) ===========
========================================================================
<FN>
*Denotes a non-income producing security.
Cost for Federal income tax purposes: $26,901,319.
The abbreviations on the above statement stand for the following:
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage
Corporation
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 11
<PAGE> 14
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
=====================================================================================================================
GOVERNMENT ASSET GROWTH LARGE COMPANY
BOND ALLOCATION OPPORTUNITIES GROWTH
---------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $11,900,067, $7,969,558, $11,964,377
and $24,853,132, respectively) $11,675,243 $ 8,405,364 $12,111,943 $27,406,231
Repurchase agreements (cost $892,000,
$1,776,270, $2,129,540, and $2,043,000, respectively) 892,000 1,776,270 2,129,540 2,043,000
----------- ----------- ----------- -----------
Total investments 12,567,243 10,181,634 14,241,483 29,449,231
Cash 394 331 507 121
Receivable for investment securities sold 876,000 1,772,195 2,097,390 1,990,000
Receivable for fund shares sold 16,246 - 27,670 51,434
Receivable for futures variation margin - 4,135 8,180 -
Interest and dividends receivable 113,963 62,115 4,265 53,131
Deferred organization expenses 7,371 9,151 9,618 9,150
----------- ----------- ----------- -----------
Total assets 13,581,217 12,029,561 16,389,113 31,553,067
----------- ----------- ----------- -----------
LIABILITIES
Payable for investment securities purchased 892,000 1,776,270 2,273,625 2,043,000
Payable for fund shares redeemed - 309 - -
Management fee payable 1,724 3,263 4,879 12,645
Administration fee payable 2,456 1,954 2,689 5,595
Other accrued expenses 5,741 5,636 14,283 9,775
----------- ----------- ----------- -----------
Total liabilities 901,921 1,787,432 2,295,476 2,071,015
----------- ----------- ----------- -----------
NET ASSETS $12,679,296 $10,242,129 $14,093,637 $29,482,052
=========== =========== =========== ===========
REPRESENTED BY:
Paid-in capital $12,907,435 $ 9,655,143 $13,326,254 $26,697,345
Net unrealized appreciation (depreciation) (224,824) 440,321 154,646 2,553,099
Accumulated undistributed (distributions in excess of)
realized gain (2,154) 140,782 634,727 233,173
Accumulated undistributed (distributions in excess of)
net investment income (1,161) 5,883 (21,990) (1,565)
----------- ----------- ----------- -----------
Net Assets $12,679,296 $10,242,129 $14,093,637 $29,482,052
=========== =========== =========== ===========
Shares of beneficial interest outstanding, no par
value (unlimited number of shares authorized) 1,269,220 885,248 1,129,835 2,281,589
=========== =========== =========== ===========
NET ASSET VALUE, REDEMPTION AND OFFERING
PRICE PER SHARE $ 9.99 $ 11.57 $ 12.47 $ 12.92
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
12 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 15
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
=====================================================================================================================
GOVERNMENT ASSET GROWTH LARGE COMPANY
BOND ALLOCATION OPPORTUNITIES GROWTH
---------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income $ -- $ 34,596 $ 20,419 $ 208,050
Interest income 372,522 131,642 58,818 59,549
----------- ----------- ----------- -----------
Total investment income 372,522 166,238 79,237 267,599
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees 24,512 26,962 33,624 73,855
Administration fees 13,073 9,244 12,415 27,270
Auditing fees 3,941 2,603 3,014 7,049
Legal fees 4,668 2,528 2,869 7,022
Custodian fees 4,616 7,959 17,405 8,934
Insurance expense 2,884 1,762 1,426 4,029
Other 4,451 3,666 3,666 5,608
----------- ----------- ----------- -----------
Total expenses 58,145 54,724 74,419 133,767
Less waived and reimbursed expenses (17,292) (16,207) (23,266) (26,187)
----------- ----------- ----------- -----------
Net expenses 40,853 38,517 51,153 107,580
----------- ----------- ----------- -----------
NET INVESTMENT INCOME 331,669 127,721 28,084 160,019
----------- ----------- ----------- -----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments (2,154) 142,777 528,921 232,174
Net realized gain on financial futures -- 1,950 127,535 --
Net change in unrealized appreciation
(depreciation) on investments (514,840) 48,730 8,803 1,119,668
Net change in unrealized gain on financial futures -- 570 10,240 --
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (516,994) 194,027 675,499 1,351,842
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (185,325) $ 321,748 $ 703,583 $ 1,511,861
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 13
<PAGE> 16
<TABLE>
<CAPTION>
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT BOND ASSET ALLOCATION
---------------------------- ---------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1996 1995 1996 1995
---------------------------- ----------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSETS-- BEGINNING OF PERIOD $ 9,016,096 $ 5,111,981 $ 5,454,505 $ 2,062,929
------------ ------------ ------------ ------------
FROM OPERATIONS:
Net investment income 331,669 436,517 127,721 127,603
Net realized gain (loss) on investments (2,154) 128,998 144,727 97,556
Net change in unrealized appreciation
(depreciation) of investments (514,840) 445,748 49,300 425,670
Increase (decrease) in net ------------ ------------ ------------ ------------
assets from operations (185,325) 1,011,263 321,748 650,829
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (331,669) (436,517) (121,838) (127,603)
In excess of net investment income (1,161) (47) -- (129)
Net realized gain from investment transactions -- (123,527) -- (97,556)
In excess of realized gain from investment transactions -- -- -- (3,945)
Decrease in net assets from ------------ ------------ ------------ ------------
distributions to shareholders (332,830) (560,091) (121,838) (229,233)
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
Net proceeds from sale of shares 3,957,315 2,839,265 4,544,188 2,810,916
Net asset value of shares issued to
shareholders from reinvestment of
distributions 332,830 644,533 121,838 241,319
Cost of shares redeemed (108,790) (30,855) (78,312) (82,255)
Increase in net assets from ------------ ------------ ------------ ------------
share transactions 4,181,355 3,452,943 4,587,714 2,969,980
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS 3,663,200 3,904,115 4,787,624 3,391,576
------------ ------------ ------------ ------------
NET ASSETS-- END OF PERIOD $ 12,679,296 $ 9,016,096 $ 10,242,129 $ 5,454,505
============ ============ ============ ============
Undistributed net realized gain (loss) on
investments included in net assets at end of period $ (2,154) $ -- $ 140,782 $ (3,945)
============ ============ ============ ============
Undistributed (distributions in excess of) net
investment income included in net assets at
end of period $ (1,161) $ -- $ 5,883 $ --
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements
14 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 17
<TABLE>
<CAPTION>
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
GROWTH OPPORTUNITIES LARGE COMPANY GROWTH
---------------------------- ---------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1996 1995 1996 1995
---------------------------- ----------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSETS-- BEGINNING OF PERIOD $ 6,685,202 $ 940,171 $ 16,119,036 $ 4,174,658
------------ ------------ ------------ ------------
FROM OPERATIONS:
Net investment income 28,084 14,093 160,019 172,555
Net realized gain on investments 656,456 240,787 232,174 96,379
Net change in unrealized appreciation
(depreciation) of investments 19,043 150,831 1,119,668 1,449,235
Increase in net assets ------------ ------------ ------------ ------------
from operations 703,583 405,711 1,511,861 1,718,169
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (28,291) (13,886) (161,173) (172,344)
In excess of net investment income (21,990) -- (1,565) --
Net realized gain from investment transactions -- (240,787) -- (95,380)
In excess of realized gain on investment transactions -- (18,225) -- --
Decrease in net assets from ------------ ------------ ------------ ------------
distributions to shareholders (50,281) (272,898) (162,738) (267,724)
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
Net proceeds from sale of shares 6,721,436 5,384,494 11,903,155 10,232,823
Net asset value of shares issued to
shareholders from reinvestment of
distributions 50,281 272,898 162,737 287,675
Cost of shares redeemed (16,584) (45,174) (51,999) (26,565)
Increase in net assets from ------------ ------------ ------------ ------------
share transactions 6,755,133 5,612,218 12,013,893 10,493,933
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS 7,408,435 5,745,031 13,363,016 11,944,378
------------ ------------ ------------ ------------
NET ASSETS-- END OF PERIOD $ 14,093,637 $ 6,685,202 $ 29,482,052 $ 16,119,036
============ ============ ============ ============
Undistributed net realized gain (loss) on
investments included in net assets at end of period $ 634,727 $ (21,729) $ 233,173 $ 999
============ ============ ============ ============
Undistributed (distributions in excess of) net
investment income included in net assets at
end of period $ (21,990) $ 207 $ (1,565) $ 1,154
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 15
<PAGE> 18
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
===================================================================================================================================
GOVERNMENT BOND ASSET ALLOCATION
---------------------------------------- ------------------------------------------
SIX MONTHS YEAR ENDED AUGUST 1, - SIX MONTHS YEAR ENDED AUGUST 1, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, DECEMBER 31,
1996 1995 1994 * 1996 1995 1994 *
----------------------------------------- ------------------------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE-- BEGINNING OF PERIOD $ 10.48 $ 9.69 $ 10.00 $ 11.24 $ 9.81 $ 10.00
--------- -------- --------- --------- -------- ---------
INCOME FROM OPERATIONS:
Net investment income 0.29 0.64 0.22 0.17 0.36 0.06
Net realized and unrealized gain (loss)
on investments (0.49) 0.94 (0.31) 0.32 1.64 (0.19)
--------- -------- --------- --------- -------- ---------
Total from operations (0.20) 1.58 (0.09) 0.49 2.00 (0.13)
--------- -------- --------- --------- -------- ---------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.29) (0.64) (0.22) (0.16) (0.36) (0.06)
Net realized gains on investments -- (0.15) -- -- (0.21) --
--------- -------- --------- --------- -------- ---------
Total distributions (0.29) (0.79) (0.22) (0.16) (0.57) (0.06)
--------- -------- --------- --------- -------- ---------
NET ASSET VALUE-- END OF PERIOD $ 9.99 $ 10.48 $ 9.69 $ 11.57 $ 11.24 $ 9.81
========= ======== ========= ========= ======== =========
Total return (1.9%) 16.7% (0.9%) 4.4% 20.7% (1.3%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $ 12,679 $ 9,016 $ 5,112 $ 10,242 $ 5,455 $ 2,063
Ratio of expenses to average net assets ** .75% .75% .75% 1.00% 1.00% 1.00%
Ratio of expenses to average net assets
excluding waivers/reimbursements*** 1.07% 1.47% 1.94% 1.42% 1.96% 2.36%
Ratio of net investment income to **
average net assets 6.09% 6.54% 6.09% 3.32% 3.66% 1.88%
Ratio of net investment income to average net
assets excluding waivers/reimbursements *** 5.77% 5.80% 4.90% 2.89% 2.70% .52%
Portfolio turnover 3.56% 34.06% 3.54% 20.75% 66.29% --
Average commission rate paid -- -- -- 4.3911(cent) -- --
<FN>
- ----------------------------
*Initial public offering was August 1, 1994. See note 1
**Ratios are annualized for periods of less than one year.
Total return and portfolio turnover are not annualized
***Ratios calculated as if no expenses were waived.
</TABLE>
See accompanying notes to financial statements.
16 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 19
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===============================================================================
<TABLE>
<CAPTION>
GROWTH OPPORTUNITES LARGE COMPANY GROWTH
---------------------------------------- ---------------------------------------
SIX MONTHS YEAR ENDED AUGUST 1,- SIX MONTHS YEAR ENDED AUGUST 1,-
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, DECEMBER 31,
1996 1995 1994* 1996 1995 1994*
---------------------------------------- ----------------------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE-- BEGINNING OF PERIOD $ 11.52 $ 9.70 $ 10.00 $ 12.12 $ 9.99 $ 10.00
------------ --------- -------- ------- ------- --------
INCOME FROM OPERATIONS:
Net investment income 0.06 0.04 -- 0.08 0.20 0.05
Net realized and unrealized gain (loss)
on investments 0.97 2.29 (0.30) 0.80 2.20 0.01
------------ --------- -------- ------- ------- --------
Total from operations 1.03 2.33 (0.30) 0.88 2.40 0.06
------------ --------- -------- ------- ------- --------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.08) (0.04) -- (0.08) (0.20) (0.05)
Net realized gains on investments -- -- -- -- (0.07) (0.02)
------------ --------- -------- ------- ------- --------
Total distributions (0.08) (0.51) -- (0.08) (0.27) (0.07)
------------ --------- -------- ------- ------- --------
NET ASSET VALUE-- END OF PERIOD $ 12.47 $ 11.52 $ 9.70 $ 12.92 $ 12.12 $ 9.99
============= ========= ======== ======= ======= ========
Total return 8.7% 24.1% (3.0%) 7.3% 24.1% 0.5%
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $ 14,094 $ 6,685 $ 940 $29,482 $16,119 $ 4,175
Ratio of expenses to average net assets ** .99% .90% .90% .95% .90% .90%
Ratio of expenses to average net assets
excluding waivers/reimbursements*** 1.44% 2.78% 2.96% 1.18% 1.64% 2.08%
Ratio of net investment income to **
average net assets .54% .46% (.17%) 1.41% 2.02% 1.39%
Ratio of net investment income to average net
assets excluding waivers/reimbursements *** .09% (1.42%) (2.22%) 1.18% 1.28% .22%
Portfolio turnover 96.50% 193.31% 3.41% 11.80% 37.36% 4.42%
Average commission rate paid 4.1543(cent) -- -- 4.4358(cent) -- --
<FN>
- -------------------
*Initial public offering was August 1, 1994. See note 1.
**Ratios are annualized for periods of less than one year.
Total return and portfolio turnover are not annualized
***Ratios calculated as if no expenses were waived.
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 17
<PAGE> 20
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
================================================================================
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The ONE(R) GROUP(SM) Investment Trust (the "Trust") was organized as a
Massachusetts Business Trust on June 7, 1993. The Trust is registered under the
Investment Company Act of 1940 as an open-end management investment company. The
Trust comprises four portfolios: the Government Bond Fund, the Asset Allocation
Fund, the Growth Opportunities (formerly the Small Company Growth) Fund, and the
Large Company Growth Fund (the "Funds"). The shares of the Funds are sold only
to Nationwide Life and Annuity Insurance Company (formerly Financial Horizons
Life Insurance Company), an affiliate of Nationwide Insurance Company, to fund
the benefits of the ONE(R) GROUP(SM) Variable Annuity.
Effective May 1, 1996, the Small Company Growth Fund changed its name to the
Growth Opportunities Fund.
Banc One Investment Advisors Corporation ("Banc One") serves as Investment
Advisor to the Trust. Nationwide Financial Services, Inc. ("NFS") serves as
Administrator to the Trust. Nationwide Investors Services, Inc. ("NIS"), an
affiliate of NFS, serves as the Transfer Agent to the Trust. For its services,
NIS receives an annual fee of $2,500 for each fund.
Prior to August 1, 1994 (date of initial public offering), the Funds had no
operations other than the sale to Nationwide Life and Annuity Insurance Company
of shares of the Funds, as follows:
<TABLE>
<CAPTION>
FUND SHARES PROCEEDS
---- ------ --------
<S> <C> <C>
Government Bond 2,500 $25,000
Asset Allocation 2,500 25,000
Growth Opportunities 2,500 25,000
Large Company Growth 2,500 25,000
</TABLE>
Investment operations commenced on August 23, 1994 for the Government Bond and
the Large Company Growth Funds, September 29, 1994 for the Asset Allocation Fund
and November 3, 1994 for the Growth Opportunities Fund.
Organization costs incurred in connection with the organization and initial
registration of the Trust were paid by the Administrator and have been
reimbursed by the Funds. Such organization costs have been deferred and will be
amortized ratably over a period of sixty months from the commencement of
operations. If any of the initial shares are redeemed before the end of the
amortization period, the proceeds of the redemption will be reduced by the pro
rata share of the unamortized organization costs.
SECURITY VALUATION
a) Securities traded on a national securities exchange (including financial
futures) are valued at the last sales price. Listed securities for which no
sale was reported on the valuation date are valued at quoted bid prices or
fair market, in accordance with procedures authorized by the Board of
Trustees. Short-term notes and bank certificates of deposit are valued at
amortized cost, which approximates market.
b) It is the policy of the Funds to require the custodian bank or an approved
sub-custodian to take possession, to have legally segregated in the Federal
Reserve Book Entry System, or to have segregated within the custodian
bank's vault, all securities held as collateral under repurchase agreement
transactions. Additionally, procedures have been established by the Trust
to monitor, on a daily basis, the market value of each of the repurchase
agreement's collateral to ensure that the value of the collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
FEDERAL INCOME TAX
The Trust's policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies and to distribute all
of its taxable income to shareholders. Therefore, no Federal income tax
provision is required. Each Fund of the Trust is treated as a separate taxable
entity.
18 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 21
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED) CONTINUED
================================================================================
NOTE 1 CONTINUED
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date; interest income is recorded on an accrual
basis and includes, where applicable, the pro rata amortization of premium or
accretion of discount.
DIVIDENDS TO SHAREHOLDERS
Dividends are recorded on the ex-dividend date. The funds declare and pay income
dividends quarterly. Distributable net realized capital gains are declared and
distributed at least annually. Dividends and distributions to shareholders are
determined in accordance with Federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
considered either permanent or temporary in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their nature for Federal income tax purposes;
temporary differences do not require reclassification. Dividends and
distributions that exceed net investment income and net realized gains for
financial reporting purposes but not for tax purposes are reported as dividends
in excess of net investment income and net realized gains. To the extent
distributions exceed current and accumulated earnings and profits for Federal
income tax purposes, they are reported as distributions of paid-in capital.
EXPENSES
Direct expenses of a Fund are allocated to that Fund. The general expenses of
the Trust are allocated to the Funds based on the relative net assets of the
Funds at the time the expense is incurred.
USE OF ESTIMATES
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 revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 2 - AGREEMENTS
As Investment Advisor, Banc One manages the investments of each Fund of the
Trust and earns a fee from the Funds at the following annual rates: .45% of the
average daily net assets of the Government Bond Fund, .70% of the average daily
net assets of the Asset Allocation Fund, .65% of the average daily net assets of
the Growth Opportunities Fund, and .65% of the averge daily net assets of the
Large Company Growth Fund. Such fees are calculated daily and paid monthly.
NFS provides administrative and accounting services to the Funds. For its
services, NFS earns a fee from the Trust at an annual rate of .24% of the
Trust's aggregate average daily net assets up to $250 million, .19% of such net
assets in excess of $250 million but less that $500 million, .16% of such net
assets in excess of $500 million but less than $1 billion, and .14% of such net
assets in excess of $1 billion.
The Investment Advisor has voluntarily agreed to waive all or part of its fees
and reimburse expenses in order to limit the Funds' operating expenses to no
more than .75% of the average daily net assets of the Government Bond Fund,
1.00% of the average daily net assets of the Asset Allocation Fund, 1.10% of the
average daily net assets of the Growth Opportunities Fund and 1.00% of the
average daily net assets of the Large Company Growth Fund. Prior to May 1,
1996, the Growth Opportunities and Large Company Growth Funds' expense limits
were both .90%. During the period ended June 30, 1996, the Investment Advisor
voluntarily waived fees and reimbursed expenses in the amount of $17,292 in the
Government Bond Fund, $16,207 in the Asset Allocation Fund, $23,266 in the
Growth Opportunities Fund and $26,187 in the Large Company Growth Fund,
representing $.016, $.024, $.028 and $.014 per share, respectively.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 19
<PAGE> 22
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED) CONTINUED
================================================================================
NOTE 3 CAPITAL SHARE TRANSACTIONS
The Trust is authorized to issue an unlimited number of shares of beneficial
interest, with no par value.
Transactions in capital stock for the six months ended June 30, 1996 and the
year ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1996 YEAR ENDED DECEMBER 31, 1995
--------------------------------------------- ----------------------------------------
REINVESTMENT REINVESTMENT
SHARES PURCHASES OF DIVIDENDS REDEMPTIONS PURCHASES OF DIVIDENDS REDEMPTIONS
- ------
<S> <C> <C> <C> <C> <C> <C>
Government Bond 386,496 33,118 (10,845) 272,833 62,835 (2,974)
Asset Allocation 396,481 10,603 (6,928) 260,452 21,991 (7,550)
Growth Opportunities 546,900 4,067 (1,357) 463,544 23,720 (3,975)
Large Company Growth 943,451 12,759 (4,050) 889,236 24,630 (2,361)
DOLLARS
- -------
Government Bond $ 3,957,315 $ 332,830 $ (108,790) $ 2,839,265 $ 644,533 $ (30,855)
Asset Allocation 4,544,188 121,838 (78,312) 2,810,916 241,319 (82,255)
Growth Opportunities 6,721,436 50,281 (16,584) 5,384,494 272,898 (45,174)
Large Company Growth 11,903,155 162,737 (51,999) 10,232,823 287,675 (26,565)
</TABLE>
NOTE 4 - INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding U.S. Government obligations,
short-term securities and financial futures), and purchases and sales of U.S.
Government obligations for the six months ended June 30, 1996 are summarized as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------- --------------
<S> <C> <C>
Government Bond $ 3,046,360 $ 215,289
Asset Allocation 3,875,678 1,204,005
Growth Opportunities 14,406,293 8,625,529
Large Company Growth 14,723,636 2,450,215
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
PURCHASES SALES
--------------- --------------
<S> <C> <C>
Government Bond $ 821,094 $ 158,425
Asset Allocation 1,398,336 -
Growth Opportunities 143,250 -
Large Company Growth - -
</TABLE>
The Asset Allocation and Growth Opportunities Funds are engaged in trading
financial futures contracts. The funds are exposed to market risks in excess of
the amounts recognized in the statement of assets and liabilities as a result of
changes in the value of the underlying financial instruments. Investments in
financial futures require the funds to "mark to market" such futures on a daily
basis, to reflect the change in the market value of the contract at the close of
each day's trading. Typically, variation margin payments are made or received to
reflect daily unrealized gains or losses. When the contracts are closed, the
fund recognizes a realized gain or loss. Realized gains and losses have been
computed on the first-in, first-out basis.
A stock index futures contract is a bilateral agreement pursuant to which two
parties agree to take or make delivery of an amount of cash equal to a specified
dollar amount times the difference between the stock index value at the close of
trading of the contracts and the price at which the futures contract was
originally struck. The Funds' purpose in entering into futures contracts is to
remain fully invested and reduce transaction costs.
20 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 23
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED) CONTINUED
================================================================================
NOTE 4 CONTINUED
Net unrealized appreciation (depreciation) on investments and financial futures
at June 30, 1996, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------------- ------------- --------------
<S> <C> <C> <C>
Government Bond $ 60,069 $ (284,893) $ (224,824)
Asset Allocation 612,351 (172,030) 440,321
Growth Opportunities 799,050 (678,291) 120,759
Large Company Growth 2,838,165 (290,253) 2,547,912
</TABLE>
NOTE 5 - SHARES HELD BY AFFILIATES
As of June 30, 1996, Nationwide Life and Annuity Insurance Company beneficially
owned shares of the Funds with the following net asset values:
<TABLE>
<Cation>
<S> <C>
Government Bond $ 5,670,419
Asset Allocation 1,211,945
Growth Opportunities 32,710
Large Company Growth 4,015,567
</TABLE>
As of June 30, 1996, Banc One Capital Corporation owned shares of the Asset
Allocation Fund with a net asset value of $559,359.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 21
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