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Previous: PIONEER REAL ESTATE SHARES, 497, 1996-03-08 |
Next: NATIONWIDE LIFE & ANNUITY VA SEPARATE ACCOUNT C, N-30D, 1996-03-08 |
<PAGE> 1
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE> 2
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1995
Table of Contents
<TABLE>
<CAPTION>
Management Discussion of Fund Performance:
<S> <C>
Government Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Asset Allocation Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Small Company Growth Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Large Company Growth Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statements of Investments:
Government Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Asset Allocation Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Small Company Growth Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Large Company Growth Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Statements of Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Statements of Changes in Net Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Report of Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
</TABLE>
<PAGE> 3
THE ONE(R) GROUP(SM) INVESTMENT TRUST
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DECEMBER 31, 1995
Government Bond Fund
- --------------------
The Government Bond Fund is managed by Thomas E. Donne, Chartered Financial
Analyst. Its investment objective is to seek a high level of current income,
consistent with capital preservation, by investing primarily in securities
issued or backed by the U.S. government and its agencies.
After a disastrous 1994, the bond market bounced back in 1995 with its third
best year on record. The rally began early in the year, as the economy slowed
to a more sustainable growth level with minimal inflation--the ideal
environment for bonds. This scenario prevailed for several months; then, when
it appeared that growth may have been slowing a bit too much, the Fed attempted
to jump-start the sluggish economy by cutting interest rates twice--once in
July and once in December. This action caused bond yields to fall and bond
prices to rise.
The Government Bond Fund participated in the bond market rally, gaining 16.69%
for the one-year period ended December 31, 1995. The Fund's return was
generated by successfully shifting the portfolio's weightings between Treasury
and mortgage-backed securities. In addition, the Fund's relatively neutral
maturity structure helped the Fund take advantage of the flattening yield
curve. Also, by managing the Fund's duration, the Fund was able to limit
volatility and preserve portfolio income.
Bond market returns should be attractive for 1996, but they most likely will
not equal the performance of last year. While price appreciation accounted for
most of the return on bonds during 1995, coupon rates should provide the larger
portion of returns during 1996.
HYPOTHETICAL $10,000 INVESTMENT
[FIGURE 1]
<TABLE>
<S> <C> <C> <C>
8/1/94* 12/31/94 12/31/95
------- -------- --------
$10,000 $10,000 $11,564
Government Bond
$10,000 $10,000 $11,507
Solomon Bros. 3-7 Yr. Treas./Gov't
</TABLE>
*Initial public offering commenced August 1, 1994.
--------------------------------
Government Bond Fund
Average Annual Total Return
--------------------------------
One Year Since Inception
--------------------------------
16.69% 10.78%
--------------------------------
Past performance is not predictive of future performance.
1
<PAGE> 4
THE ONE(R) GROUP(SM) INVESTMENT TRUST
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DECEMBER 31, 1995
Asset Allocation Fund
- ---------------------
The equity portion of the Asset Allocation Fund is managed by Michael D. Weiner
and the fixed-income portion is managed by James A. Sexton, Chartered Financial
Analyst. The Fund seeks to provide a combination of capital appreciation and
current income from common stocks, bonds and money market securities.
The modest-growth, low-inflation, low-interest-rate environment of 1995 led to
record performance in the stock market. In the 1995 stock market, bigger was
better. Bolstered by modest economic growth and strong profits, large,
multi-national companies offered the best returns. The Dow Jones Industrial
Average, for example, soared to two milestone levels within nine months--4,000
in February and 5,000 in November. The S&P 500 Index also posted spectacular
gains, with its one-year performance reaching 37.53%. While they lagged their
larger counterparts, small company stocks, nevertheless, posted historically
attractive returns. As measured by the Russell 2000, small company stocks
returned 26.21% for the year.
After a disastrous 1994, the bond market bounced back in 1995 with its third
best year on record. The rally began early in the year, as the economy slowed
to a more sustainable growth level with minimal inflation--the ideal
environment for bonds. This scenario prevailed for several months; then, when
it appeared that growth may have been slowing a bit too much, the Fed attempted
to jump-start the sluggish economy by cutting interest rates twice--once in
July and once in December. This action caused bond yields to fall and bond
prices to rise.
The Fund offered an attractive one-year return, gaining 20.69% for the period
ended December 31, 1995. On the equity side, the Fund's performance can be
attributed to good stock selection resulting from a bottom-up process. The
Fund's fixed-income portion held back overall performance somewhat, due to a
duration stance that was lower than its benchmark index. In the falling
interest rate environment of 1995, funds with longer durations experienced
greater price appreciation than those with shorter durations.
Over the course of 1996, interest rates should remain stable or decline
slightly and profit growth should continue, though not to the magnitude that
was witnessed in 1995. 1996 should offer an environment in which stocks will
continue to do well, but returns should revert back to the high single digits
or the low double digits.
HYPOTHETICAL $10,000 INVESTMENT
[FIGURE 2]
<TABLE>
<S> <C> <C> <C>
8/1/94* 12/31/94 12/31/95
------- -------- --------
Asset Allocation $10,000 $10,000 $11,909
Blended Index** $10,000 $10,000 $12,946
</TABLE>
*Initial public offering commenced August 1, 1994.
**Blended Index consists of 60% S&P 500 & 40% Lipper Intermediate
U.S. Government Universe Average
--------------------------------
Asset Allocation Fund
Average Annual Total Return
--------------------------------
One Year Since Inception
--------------------------------
20.69% 13.09%
--------------------------------
Past performance is not predictive of future performance.
2
<PAGE> 5
THE ONE(R) GROUP(SM) INVESTMENT TRUST
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DECEMBER 31, 1995
Small Company Growth Fund
- -------------------------
The Small Company Growth Fund is managed by Richard R. Jandrain III. The Fund
seeks capital appreciation by investing primarily in common stocks of small and
mid-size companies selected for growth potential.
The modest-growth, low-inflation, low-interest-rate environment of 1995 led to
record performance in the stock market. In the 1995 stock market, bigger was
better. Bolstered by modest economic growth and strong profits, large,
multi-national companies offered the best returns. The Dow Jones Industrial
Average, for example, soared to two milestone levels within nine months--4,000
in February and 5,000 in November. The S&P 500 Index also posted spectacular
gains, with its one-year performance reaching 37.53%. While they lagged their
larger counterparts, small company stocks, nevertheless, posted historically
attractive returns. As measured by the Russell 2000, small company stocks
returned 26.21% for the year.
Throughout most of the year, the Fund's performance was aided by its strong
weighting in technology stocks. This sector of the market was the
best-performing sector for the first three quarters of the year. A correction
in the fourth quarter, however, caused these stocks to suffer a setback, which
influenced Fund performance. For the one-year period ended December 31, 1995,
the Fund gained 24.06%.
Over the course of 1996, interest rates should remain stable or decline
slightly and profit growth should continue, though not to the magnitude that
was witnessed in 1995. 1996 should offer an environment in which stocks will
continue to do well, but returns should revert back to the high single digits
or the low double digits.
HYPOTHETICAL $10,000 INVESTMENT
[FIGURE 3]
<TABLE>
<S> <C> <C> <C>
8/1/94* 12/31/94 12/31/95
------- -------- --------
Small Co. $12,033
Russell 2000 $12,946
</TABLE>
*Initial public offering commenced August 1, 1994.
-------------------------------
Small Company Growth Fund
Average Annual Total Return
-------------------------------
One Year Since Inception
-------------------------------
24.06% 13.92%
-------------------------------
Past performance is not predictive of future performance.
3
<PAGE> 6
THE ONE(R) GROUP(SM) INVESTMENT TRUST
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DECEMBER 31, 1995
Large Company Growth Fund
- -------------------------
The Large Company Growth Fund is managed by R. Lynn Yturri. The Fund's
objective is to achieve above-average long-term capital growth by investing
primarily in common stocks of companies with large market capitalizations.
The modest-growth, low-inflation, low-interest-rate environment of 1995 led to
record performance in the stock market. In the 1995 stock market, bigger was
better. Bolstered by modest economic growth and strong profits, large,
multi-national companies offered the best returns. The Dow Jones Industrial
Average, for example, soared to two milestone levels within nine months--4,000
in February and 5,000 in November. The S&P 500 Index also posted spectacular
gains, with its one-year performance reaching 37.53%.
The Fund benefited from the overall "flight to quality" experienced in the U.S.
stock market, when economic uncertainty caused investors to gravitate toward
stocks of larger high-quality companies. Many of the Fund's high-quality
companies have a history of showing attractive earnings, regardless of economic
activity, and their share prices performed well as a result. For the one-year
period ended December 31, 1995, the Fund gained 24.13%.
Over the course of 1996, interest rates should remain stable or decline
slightly and profit growth should continue, though not to the magnitude that
was witnessed in 1995. 1996 should offer an environment in which stocks will
continue to do well, but returns should revert back to the high single digits
or the low double digits.
HYPOTHETICAL $10,000 INVESTMENT
[FIGRE 4]
<TABLE>
<S> <C> <C> <C>
8/1/94* 12/31/94 12/31/95
------- -------- --------
Large Co. $10,000 $10,000 $12,477
S&P 500 $10,000 $10,000 $13,441
</TABLE>
*Initial public offering commenced August 1, 1994.
-------------------------------
Large Company Growth Fund
Average Annual Total Return
-------------------------------
One Year Since Inception
-------------------------------
24.13% 16.87%
-------------------------------
Past performance is not predictive of future performance.
4
<PAGE> 7
GOVERNMENT BOND FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
PRINCIPAL VALUE (NOTE 1)
- -----------------------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (33.7%)
$500,000 Federal Farm Credit Bank Bond, 8.65%, 1999 $553,323
1,000,000 U.S. Treasury Bond, 6.25%, 2023 1,027,812
600,000 U.S. Treasury Note, 7.50%, 2001 661,312
750,000 U.S. Treasury Note, 6.50%, 2005 798,983
----------
Total U.S. Government and Agency Obligations 3,041,430
(cost $2,900,460) ----------
MORTGAGE BACKED SECURITIES (62.8%)
976,775 FHLMC GOLD 30Y, 8.00%, 2024 1,011,877
999,215 FHLMC GOLD 30Y, 6.50%, 2025 988,285
433,080 FHLMC GOLD 15Y, 8.50%, 1999 451,022
922,878 FNMA 15Y, 7.50%, 2009 948,834
488,461 FNMA 30Y, 6.50%, 2025 482,653
725,927 GNSF 30Y, 7.50%, 2023 746,344
128,501 GNSF 30Y, 7.00%, 2025 129,987
891,499 GNSF 30Y, 7.00%, 2025 901,807
----------
Total Mortgage Backed Securities (cost 5,660,809
----------
REPURCHASE AGREEMENT (2.3%)
204,000 Lehman Government Securities Inc.,
5.96%, due 01/02/96, Collateralized by
$215,000 FMDN, due 03/18/96 - Market Value $ 212,377
(cost $204,000) 204,000
----------
Total Investments (cost $8,616,223) 8,906,239
Other Assets Less Liabilities (1.2%) 109,857
-----------
Net Assets $9,016,096
===========
<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
FMDN Fannie Mae Discount Note
Portfolio holding percentages represent market value as a percentage of net
assets. See accompanying notes to financial statements.
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995
- ------------------------------------------------------ ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ------------------------------------------------------ ------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (44.6%)
AEROSPACE/DEFENSE (1.7%) 400 UST Inc. $ 13,350
300 Boeing Company (The) $23,513 ---------
400 Lockheed Martin Corp. 31,600 91,913
400 Raytheon Company 18,900 ---------
200 United Technologies Corp. 18,975 CONSUMER GOODS MFG. (0.3%)
--------- 700 Newell Co. 18,112
92,988 ----------
---------
AUTO & AUTO PARTS (0.9%) DRUGS (1.7%)
100 Dana Corporation 2,925 300 American Home Products Corp. 29,100
600 Ford Motor Co. 17,400 400 Baxter International Inc. 16,750
400 General Motors Corp. 21,150 400 Bristol Meyers Squibb Co. 34,350
200 Goodyear Tire & Rubber Co. 9,075 200 Schering-Plough Corp. 10,950
---------- ----------
50,550 91,150
--------- ----------
BANKS (2.1%) ELECTRONICS (0.8%)
500 BankAmerica Corp. 32,375 700 Intel Corp. 39,725
300 Citicorp 20,175 100 Johnson Controls Inc. 6,875
300 Comerica Inc. 12,038 ----------
300 Nationsbank Corp. 20,887 46,600
300 U.S. Bancorp 10,088 ----------
100 Wells Fargo & Co. 21,600 ENERGY (0.6%)
--------- 400 Chevron Corp. 21,000
117,163 100 Enron Corp. 3,813
-------- 100 Schlumberger Ltd. 6,925
BUSINESS SERVICES (0.3%) ---------
400 Olsten Corp. (The) 15,800 31,738
------- --------
FINANCIAL (3.0%)
CHEMICALS (0.8%) 500 Allstate Corp. 20,562
300 Dow Chemical Co. 21,113 700 American Express Co. 28,963
300 Du Pont (E.I.) DeNemours & Co. 20,962 400 American International Group Inc. 37,000
------- 100 Federal Home Loan Mortgage Corp. 8,350
300 Federal National Mortgage Assn. 37,238
42,075 400 First Chicago NBD Corp. 15,800
------- 500 KeyCorp 18,125
COMPUTER EQUIPMENT (1.3%) --------
400 Apple Computer Inc. 12,750 166,038
500 Compaq Computer Corp.* 24,000 -------
400 Hewlett-Packard Co. 33,500 FOOD & BEVERAGE (2.7%)
------- 100 Anheuser-Busch Companies, Inc. 6,687
70,250 500 Coca Cola Co. 37,125
------- 600 PepsiCo, Inc. 33,525
CONSUMER CYCLICALS (0.8%) 800 Philip Morris Companies, Inc. 72,400
300 Disney, (Walt) Co. 17,700 --------
400 Service Corp. International 17,600 149,737
200 VF Corp. 10,550 -------
------ HEALTHCARE (2.7%)
400 Abbott Laboratories 16,700
45,850 400 Johnson & Johnson 34,250
------ 400 Medtronic Inc. 22,350
CONSUMER NON-DURABLE (1.7%) 600 Merck & Co. Inc. 39,450
300 American Stores Co. 8,025 100 Pacificare Health System Inc.,
300 Hasbro Inc. 9,300 Class A* 8,700
200 Kimberly Clark Corp. 16,550 400 Pfizer Inc. 25,200
400 Nike Inc., Class B 27,850 --------
300 RJR Nabisco Holdings Corp. 9,263 146,650
300 Smith's Food & Drug Centers Inc., Class B 7,575 -------
HEALTHCARE SERVICES (0.8%)
600 Columbia/HCA Healthcare Corp. $30,450
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995, Continued
- ---------------------------------------------------------- --------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C>
450 Health Management Association Inc.,
Class A* 11,756 POLLUTION CONTROL (0.1%)
--------- 300 WMX Technologies, Inc. 8,962
42,206 ----------
--------- OIL & GAS (3.1%)
HOUSEHOLD PRODUCTS (0.9%) 300 Amoco Corp. 21,563
700 Maybelline, Inc. 25,375 100 Atlantic Richfield Co. 11,075
300 Procter & Gamble Co. 24,900 700 Exxon Corporation 56,087
--------- 200 Mobil Corp. 22,400
50,275 300 Royal Dutch Petroleum Co. 42,338
--------- 200 Texaco, Inc. 15,700
----------
INDUSTRIAL COMMODITY (1.8%) 169,163
400 Ball Corporation 11,000 ----------
200 Consolidated Papers Inc. 11,225 PRINTING & PUBLISHING (0.5%)
400 Corning Inc. 12,800 600 American Greetings Corp., Class A 16,575
600 Cyprus Amax Minerals Co. 15,675 200 Tribune Co. 12,225
400 International Paper Co. 15,150 ----------
200 Mead Corporation 10,450 28,800
200 PPG Industries Inc. 9,150 ----------
20 Schweitzer-Mauduit International, Inc. 463 RESTAURANTS (1.2%)
200 Willamette Industries Inc. 11,250 500 Bob Evans Farms Inc. 9,500
--------- 500 Lone Star Steakhouse & Saloon* 19,187
600 McDonalds Corp. 27,075
97,163 500 Wendy's International Inc. 10,625
------- ----------
INSURANCE (0.7%) 66,387
100 ITT Hartford Group* 4,838 ----------
100 MBIA Inc. 7,500 RETAIL (1.2%)
200 Providian Corp. 8,150 300 Dillard Department Stores Inc., 8,550
300 St. Paul Companies, Inc. 16,687 200 Home Depot Inc. 9,575
-------- 500 Intimate Brands Inc., Class A 7,500
37,175 500 Sears Roebuck & Co. 19,500
-------- 1,000 Wal-Mart Stores Inc. 22,375
MACHINERY & CAPITAL GOODS (3.0%) ----------
200 Alco Standard Corp. 9,125 67,500
200 AlliedSignal Inc. 9,500 ----------
600 Browning Ferris Industries 17,700 TECHNOLOGY (3.3%)
1,000 General Electric Co. 72,000 200 3COM Corp. 9,325
100 Grainger, W.W. Inc. 6,625 400 International Business Machines 36,700
300 Harnischfeger Industries Inc. 9,975 500 Microsoft Corp.* 43,875
100 ITT Corp.* 5,300 500 Motorola Inc. 28,500
100 ITT Industries, Inc.* 2,400 500 Silicon Graphics Inc.* 13,750
400 Tenneco Inc. 19,850 800 Sun Microsystems Inc. 36,500
200 Tyco International Ltd. 7,125 200 Texas Instruments Inc. 10,350
400 Westinghouse Electric Corp. 6,600 ----------
----------
166,200 179,000
-------- ----------
TELECOMMUNICATIONS (3.5%)
MEDICAL PRODUCTS (0.2%) 800 AT & T Corp. 51,800
500 Biomet Inc.* 8,937 300 Ameritech Corp. 17,700
---------- 200 Bell Atlantic Corp. 13,375
400 Bellsouth Corp. 17,400
NONFERROUS METALS (0.2%)
200 Alumax, Inc. 6,125
100 Aluminum Co. of America 5,287
----------
11,412
---------
PAPER & FOREST PRODUCTS (0.6%)
200 Georgia Pacific Corp. $ 13,725
--------
7
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995, Continued
- ------------------------------------------------------ ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ------------------------------------------------------ -----------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (CONTINUED) MORTGAGE BACKED SECURITIES (6.6%)
700 GTE Corp. $30,800 $200,000 Advanta Mortgage Loan Trust 94-3A2
100 Nynex Corp. 5,400 7.600%, due 07/25/10 $206,400
300 SBC Communications Inc. 17,250 149,667 FNMA Pool #270725
900 Sprint Corp. 35,887 7.00%, due 08/01/25 150,881
---------- Total Mortgage Backed Securities ----------
189,612 (cost $345,529) 357,281
---------- ----------
TRANSPORTATION (0.8%) REPURCHASE AGREEMENT (21.6%)
300 AMR Corp.* 22,275 1,180,000 Lehman Government Securities Inc.
200 Federal Express Corp.* 14,775 5.96% due 01/02/96, Collateralized by
100 Norfolk Southern Corp. 7,938 $240,000 FNMA Discount Note, due 03/18/96
---------- $995,000 FNMA Discount Note, due 06/21/96
44,988 - market value $1,206,799
---------- (cost $1,180,000) 1,180,000
-----------
UTILITIES (1.4%) U.S. GOVERNMENT OBLIGATIONS (17.1%)
500 Central & Southwest Corp. 13,938 35,000 U.S. Treasury Bill, 4.86%, 34,620
700 Consolidated Edison Co. of NY, Inc. 22,400 due 03/21/96**
100 Duke Power Company 4,737 75,000 U.S. Treasury Bond, 7.825%, 92,320
200 Northern States Power Co. of Minnesota 9,825 due 02/15/21
600 Texas Utilities Co. 24,675 725,000 U.S. Treasury Note, 7.25%, 806,563
---------- due 05/15/04 -----------
75,575 Total U.S. Government Obligations 933,503
---------- (cost $904,971) -----------
Total Common Stocks 2,433,694 Total investments 5,420,654
---------- (cost $5,033,578)
(cost $2,115,855) Other Assets Less Liabilities 33,851
PRINCIPAL -----------
- --------- Net Assets $5,454,505
CORPORATE BONDS (9.5%) ===========
BROKER-DEALERS (3.9%)
Lehman Brothers Holdings Inc. * Denotes a non-income producing security
$200,000 8.875%, due 11/01/98 214,661 **Security is segregated as collateral on futures contract.
---------
DIVERSIFIED FINANCE (1.9%) Cost also represents costs for Federal income tas purposes.
Associates Corp. of North America Portfolio holding percentages represent market value as
100,000 6.125%, due 02/01/98 101,196 a percentage of net assets.
--------- See accompanying notes to financial statements.
TELECOMMUNICATIONS (3.7%)
Ohio Bell Telephone Co.
200,000 5.75%, due 05/01/00 200,319
---------
Total Corporate Bonds (cost $487,223) 516,176
---------
</TABLE>
<TABLE>
<CAPTION>
Statement of Market Value Covered Unrealized Appreciation
Financial Futures Number of Contracts by Contracts Expiration at 12/31/95
- ----------------- ------------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Standard & Poor's 500 3 $927,675 March 1996 $3,945
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995
- ---------------------------------------------------------- ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS (85.5%)
ADVERTISING (0.6%) COMPUTER EQUIPMENT (0.5%)
1,000 Omnicom Group, Inc. $ 37,250 900 Amerisource Health Corp.,
-------- Class A* $ 29,700
---------
BANKS (2.0%) COMPUTER SOFTWARE & SERVICES (1.8%)
100 Baybanks Inc. 9,825 900 Adobe Systems, Inc. 55,800
500 Commercial Federal Corp. 18,875 300 BMC Software Inc. 12,825
100 First Commerce Corp. 3,200 300 Cognos Inc.* 13,388
600 Hibernia Corp. 6,450 800 Paychex Inc. 39,900
550 Integra Financial Corp. 34,650 -------
850 Standard Federal Bancorp 33,469 121,913
1,000 Washington Mutual Inc. 28,875 -------
-------- CONSUMER CAPITAL SPENDING (1.4%)
135,344 600 Exide Corp. 27,525
-------- 630 Harman International Industries 25,279
1,050 Oakwood Homes Corp. 40,294
BEVERAGES - ALCOHOLIC (0.6%) -------
400 Boston Beer Inc.* 9,500 93,098
900 Canandaigua Wine Inc., Class A* 29,363 -------
-------- CONSUMER CYCLICALS (0.3%)
38,863 500 Apple South Inc. 10,750
-------- 250 Loewen Group Inc. 6,328
BIOTECHNOLOGY (0.6%) -------
500 Biogen Inc.* 30,750 17,078
100 Chiron Corp.* 11,050 -------
-------- CONTAINERS (0.6%)
41,800 600 Federal Paper Board Inc. 31,125
-------- 400 Sonoco Products Co. 10,500
BROADCASTING (0.5%) -------
1,300 American Radio Systems Corp.* 36,400 41,625
-------- -------
BUILDING (0.6%) DIVERSIFIED COMMERCIAL (3.0%)
700 Vulcan Materials Co. 40,338 2,150 Copart Inc.* 56,437
-------- 800 Flightsafety International Inc. 40,200
4,100 Identix Inc.* 43,562
BUSINESS SERVICES (0.7%) 1,600 Manpower Inc. 45,000
800 Corestaff Inc.* 29,200 300 Varian Association Inc. 14,325
500 Olsten Corp. (The) 19,750 -------
-------- 199,524
48,950 -------
--------
CHEMICALS (3.3%) DRUGS (0.5%)
2,000 Arcadian Corp. 38,750 1,500 Mylan Labs Inc. 35,250
1,400 Betz Laboratories Inc. 57,400 -------
1,000 Cabot Corp. 53,875 ELECTRICAL EQUIPMENT (0.2%)
2,500 Ethyl Corp. 31,250 1,100 Cree Research Inc.* 16,225
800 IMC Global Inc. 32,700 -------
100 Vigoro Corp. 6,175
-------- ELECTRONICS (2.7%)
220,150 1,800 Applied Innovations Inc.* 21,150
-------- 900 Applied Materials Inc.* 35,437
1,400 Argyle Television Inc.* 24,500
400 California Amplifier Inc.* 11,300
9
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995
- ---------------------------------------------------------- ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ELECTRONICS (CONTINUED) 500 Occusystems Inc.* $10,000
500 Credence Systems Corp.* $11,437 50 Teva Pharmaceutical Industries Ltd. 2,319
900 Garden Ridge Corp.* 34,875 1,050 Venritex Inc.* 18,244
700 Hadco Corp.* 19,687 ---------
800 Vishay Intertechnology Inc. 25,200 427,649
--------- ---------
183,586 HEALTHCARE SERVICES (2.4%)
--------- 1,100 AHI Healthcare Systems Inc.* 6,325
400 Gulf South Medical Supply Inc.* 12,100
1,500 HealthSouth Corp.* 43,688
ENERGY (1.1%) 300 Living Centers of America Inc.* 10,500
1,300 Apache Corp. 38,350 300 Multicare Companies Inc.* 7,200
1,200 Noble Affiliates Inc. 35,850 500 Physicians Reliance Network Inc.* 19,875
--------- 500 Physicians Sales & Services Inc. 14,250
74,200 1,650 Physicians Resource Group Inc.* 32,794
--------- 300 Regency Health Services Inc. 3,037
FINANCIAL (7.6%) 500 Rotech Med. Corp.* 13,750
700 Aames Financial Corp. 19,512 ---------
1,000 Advanta Corp. 36,375 163,519
100 Allied Group Inc. 3,600 ---------
1,200 California Federal Bank 18,900 HOSPITAL MANAGEMENT (0.7%)
1,200 Donaldson Lufkin & Jenrette Inc. 37,500 1,200 Medaphis Corp.* 44,400
3,200 Equifax Inc. 68,400 ---------
2,100 First Investors Financial Services Inc.* 17,062
300 Franklin Res. Inc. 15,112 HOTELS - MOTELS (2.6%)
1,200 Glendale Federal Bank, FSB* 21,000 1,300 Circus Circus Enterprises Inc. 36,237
700 Great Western Financial Corp. 17,850 1,500 Mirage Resorts, Inc.* 51,750
900 Green Tree Financial Corp. 23,737 1,800 Red Lion Hotels Inc.* 31,500
1,000 Imperial Credit Industries Inc.* 21,750 1,100 Studio Plus Hotels Inc.* 28,325
900 MGIC Investment Corp. 48,825 2,400 Sunstone Hotel Invs. Inc. 24,600
1,400 Mid Ocean Ltd. 51,975 ---------
500 Mutual Risk Managment Ltd. 22,875 172,412
1,800 Olympic Financial Ltd. 29,250 ---------
500 Protective Life Corp. 15,625
900 Schwab, (Charles) Corp. 18,112
800 WFS Financial Inc.* 15,600
--------- HOUSEHOLD FURNISHINGS & APPLIANCES (0.7%)
503,060 3,100 Shaw Industries Inc. 45,725
--------- ---------
HEALTHCARE (6.4%) INDUSTRIAL COMMODITIES (1.3%)
1,500 Cardinal Health Inc. 82,125 2,800 BMC Industries Inc. 65,100
500 Cerner Corp.* 10,250 700 Sealed Air Corp. 19,688
600 Elan Plc* 29,175 ---------
400 Forest Labs Inc. Class A* 18,100 84,788
1,510 Genzyme Corp* 94,186 ---------
1,350 Healthcare Compare Corp.* 58,725 INSURANCE (1.1%)
1,200 Healthsource Inc.* 43,200 1,200 AFLAC Inc. 52,050
1,300 Horizon/CMS Healthcare Corp.* 32,825 400 Progressive Corp. 19,550
1,000 Ivax Corp. 28,500 ---------
71,600
---------
LEISURE / ENTERTAINMENT (0.8%)
900 Electronic Arts Inc.* 23,512
2,900 International Game Tech. 31,537
---------
55,049
---------
10
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995, Continued
- ---------------------------------------------------------- ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MACHINERY AND CAPITAL GOODS (4.8%) OFFICE EQUIPMENT AND SUPPLIES (0.9%)
550 California Energy Company Inc.* $10,725 1,300 Cort Business Services Corp.* $21,450
1,200 Harnischfeger Industries Inc. 39,900 700 Diebold Inc. 38,763
1,600 Mark IV Industries Inc. 31,600 ---------
50 Mastec Inc.* 663 60,213
1,600 Trinity Industries Inc. 50,400 ---------
3,000 Titan Wheel International Inc. 48,750 OFFICE / PLANT AUTOMATION (1.5%)
1,800 United Waste Systems Inc.* 67,050 1,500 Bay Networks Inc.* 61,688
1,000 York International Corp. 47,000 1,400 Verifone Inc.* 40,075
800 Zebra Technologies Corp. 27,200 ---------
--------- 101,763
323,288 ---------
--------- OIL & GAS (4.3%)
1,400 Anadarko Petroleum Corp. 75,775
MANUFACTURING - DIVERSIFIED (1.2%) 500 Barrett Res. Corp.* 14,688
600 Danaher Corp. 19,050 500 Benton Oil & Gas Co.* 7,500
1,200 Thermo Electron Corp. 62,400 200 Cross Timbers Oil Co. 3,525
--------- 500 Enron Oil & Gas Co. 12,000
81,450 1,000 Enserch Corp. 16,250
--------- 1,500 Lyondell Petrochemical Co. 34,312
MANUFACTURED HOUSING (0.6%) 500 MCN Corp. 11,625
1,975 Clayton Homes Inc. 42,216 400 Mapco Inc. 21,850
--------- 800 Pogo Producing Co. 22,600
700 Sonat Inc. 24,937
MEDICAL PRODUCTS (1.6%) 700 Sonat Offshore Drilling Inc. 31,325
400 Cordis Corp.* 40,200 500 Southwest Gas Corp. 8,813
1,000 McKesson Corp. 50,625 ----------
600 Vivus Inc.* 18,750 285,200
--------- ----------
109,575
---------
METALS/MINING (0.5%) OTHER CONSUMER SERVICES (0.2%)
500 Potash Corp Sask Inc. 35,438 1,000 Barefoot Inc. 10,500
--------- ----------
MISCELLANEOUS (1.0%) PAPER AND FOREST PRODUCTS (0.3%)
1,100 Enron Global Power & Pipelines 27,363 1,300 Abitibi Price Inc. 18,850
700 G & K Services Inc. 17,850 100 Bowater Inc. 3,550
300 Gadzooks Inc.* 7,575 ----------
300 Teltrend Inc. * 14,025 22,400
--------- ----------
66,813 PUBLISHING - NEWSPAPERS (0.4%)
--------- 700 Belo AH Corp., Series A 24,325
----------
MOTOR VEHICLES (0.9%)
2,000 Harley Davidson Inc. 57,500 RESTAURANTS (0.7%)
--------- 1,150 Lone Star Steakhouse & Saloon* 44,131
----------
NATURAL GAS (0.5%)
200 Questar Corp. 6,700 RETAIL (3.5%)
1,200 Seagull Energy Corp.* 26,700 1,300 Dollar General Corp. 26,975
--------- 1,000 Kohls Corp.* 52,500
33,400 1,050 Nautica Enterprises Inc.* 45,937
---------
11
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995, Continued
- ---------------------------------------------------------- ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RETAIL (CONTINUED) 1,000 Sterling Software Inc.* $62,375
50 Officemax Inc. $1,119 500 Tektronix Inc. 24,562
2,300 Sunglass Hut International Inc. 54,625 1,800 Teradyne Inc. 45,000
1,300 Tommy Hilfiger Corp.* 55,088 200 U. S. Robotics Corp. 17,550
--------- 1,200 Ultratech Stepper Inc. 30,900
236,244 ----------
--------- 450,887
RETAIL - SPECIALTY (1.3%) ----------
600 Best Buy Inc.* 9,750 TELECOMMUNICATIONS (2.5%)
900 Intimate Brands Inc., Class A 13,500 900 A D C Telecommunications Inc.* 32,850
2,000 Office Depot Inc.* 39,500 1,000 Applied Digital Access Inc.* 11,750
1,000 Staples Inc.* 24,375 100 Aspect Telecommunications Corp. 3,350
--------- 200 Cidco Inc.* 5,100
87,125 2,100 Mobilmedia Corp.* 46,725
--------- 4,400 Nextel Communications Inc.* 64,900
RETAIL STORES - FOOD CHAINS (0.9%) ----------
2,500 General Nutrition Companies. Inc. 57,500 164,675
--------- ----------
SEMICONDUCTORS (2.2%) TELEPHONE (0.3%)
900 Atmel Corp.* 20,138 600 Telephone & Data Systems Inc. 23,700
2,000 LSI Logic Corp.* 65,500 ----------
300 Linear Technology Corp. 11,775
2,300 National Semiconductor Corp.* 51,175 TEXTILES (0.4%)
--------- 1,300 Unifi Inc. 28,763
148,588 ----------
---------
SHOES (1.4%) TRANSPORTATION (1.1%)
1,900 Just For Feet, Inc. 67,925 500 America West Airlines Inc. Class 8,500
700 Nine West Group Inc.* 26,250 300 Kansas City Southern Industries, 13,725
--------- 700 Southwest Airlines Co. 16,275
94,175 1,200 Tidewater Inc. 37,800
--------- ----------
76,300
STEEL (0.5%) ----------
1,700 Allegheny Ludlum Corp. 31,450
--------- WATER & SEWER & COMBINED UTILITIES (0.6%)
2,200 USA Waste Services Inc.* 41,525
TECHNOLOGY (6.8%) ----------
600 Altera Corp.* 29,850 Total common stocks 5,718,640
700 Analog Devices Inc.* 24,763 (cost $5,579,878) ----------
600 Cadence Design System Inc. 25,200
1,400 Checkfree Corp.* 30,100
1,200 E M C Corp. Mass.* 18,450
100 Exar Corp.* 1,475
2,250 Gasonics International Corp. 30,375
600 Informix Corp. 18,000
900 Komag Inc. 41,512
300 Network Appliance Inc.* 12,038
200 Parametric Technology Corp.* 13,300
1,100 Softkey International Inc.* 25,437
12
</TABLE>
<PAGE> 15
SMALL COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
VALUE
PRINCIPAL (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT (13.4%)
$894,000 Lehman Government Securities Inc.,
5.96% due 01/02/96, Collateralized by
940,000 FNMA Discount Note, due
06/21/96 - market value $916,124
(cost $894,000) $ 894,000
-----------
GOVERNMENT OBLIGATIONS (0.2%)
15,000 U.S. Treasury Bills 5.32%,
due 02/01/96** 14,931
(cost $14,931) -----------
Total Investments 6,627,571
(cost $6,488,808)
Other Assets Less Liabilities (0.9%) (57,631)
-----------
Net Assets $6,685,202
===========
</TABLE>
<TABLE>
<CAPTION>
Statement of Market Value Covered Unrealized Depreciation
Financial Futures Number of Contracts by Contracts Expiration at 12/31/95
----------------- ------------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Standard & Poor's 500 1 $309,225 March 1996 ($3,160)
</TABLE>
*Denotes a non-income producing security.
** Security is segregated as collateral on futures contract.
Cost for Federal income tax purposes: $6,536,168.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
13
<PAGE> 16
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995
- ---------------------------------------------------------- ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS (85.5%)
AGRICULTURAL BIOTECHNOLOGY (1.1%) ELECTRONICS (3.8%)
3,200 Pioneer Hi Bred International, Inc. $ 178,000 6,300 AMP, Inc. $241,762
--------- 3,700 Motorola Inc. 210,900
3,100 Texas Instruments Inc. 160,425
CHEMICALS (5.4%) ---------
6,400 Abbott Laboratories 267,200 613,087
4,400 Air Products & Chemicals, Inc. 232,100 ---------
3,100 Dow Chemical Co. 218,163 ENERGY (4.9%)
4,900 Nalco Chemical Co. 147,612 3,900 Chevron Corp. 204,750
--------- 2,300 Kerr Mcgee Corp. 146,050
865,075 2,300 Mobil Corp. 257,600
--------- 6,400 Unocal Corp. 186,400
---------
794,800
COMPUTER EQUIPMENT (3.3%) ---------
2,300 Hewlett-Packard Co. 192,625
2,300 International Business Machines Corp. 211,025 ENGINEERING AND CONSTRUCTION (1.4%)
4,400 Silicon Graphics Inc. * 121,000 3,500 Fluor Corp. 231,000
--------- ---------
524,650
---------
COMPUTER SOFTWARE & SERVICE (2.6%) FINANCIAL (8.2%)
2,900 Automatic Data Processing Inc. 215,325 2,550 American International Group Inc. 235,875
3,900 General Motors Corp., Class E 202,800 3,000 Bard C R Inc. 96,750
--------- 3,300 Dun & Bradstreet Corp. 213,675
418,125 2,300 Marsh & McLennan Cos., Inc. 204,125
CONSUMER CYCLICALS (2.7%) 2,700 Morgan J P & Co., Inc. 216,675
3,100 Eastman Kodak Co. 207,700 4,100 St. Paul Cos., Inc. 228,062
1,900 Illinois Tool Works Inc. 112,100 3,900 U.S. Bancorp 131,138
5,300 Ryder Systems Inc. 131,175 ---------
--------- 1,326,300
450,975 ---------
---------
CONSUMER - NON-CYCLICALS (2.9%) FOODS AND RESTAURANTS (1.2%)
4,300 International Flavors & Fragrances, Inc. 206,400 4,300 McDonalds Corp. 194,038
3,100 Procter & Gamble Co. 257,300 ---------
---------
463,700
--------- FOOD - GRAIN & AGRICULTURE (0.7%)
5,892 Archer Daniels Midland Co. 106,056
CONSUMER PRODUCTS (7.9%) ---------
2,700 CPC International. Inc. 185,288
1,900 Colgate - Palmolive Co. 133,475 HEALTHCARE/MEDICAL PRODUCTS (8.4%)
2,800 Disney, (Walt) Co. 165,200 5,900 Alza Corp.* 146,025
3,000 Hershey Foods Corp. 195,000 2,300 Cardinal Health Inc. 125,925
3,300 Kimberly Clark Corp. 273,075 3,500 Columbia / HCA Healthcare Corp. 177,625
3,900 PepsiCo, Inc. 217,912 3,500 Elan Plc ADR * 170,188
4,000 Rubbermaid Inc. 102,000 2,700 Johnson & Johnson 231,187
---------
1,271,950 2,200 Medtronic Inc. 122,925
---------
DURABLE GOODS (1.4%) 3,700 Merck & Co., Inc. 243,275
6,100 Echlin Inc. 222,650 2,300 Pfizer Inc. 144,900
--------- ---------
1,362,050
---------
</TABLE>
<PAGE> 17
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS - DECEMBER 31, 1995, Continued
- ---------------------------------------------------------- ------------------------------------------------------
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
- ---------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL (4.1%) RETAIL (4.0%)
4,700 Halliburton Co. $237,937 4,100 Home Depot Inc. $196,287
7,300 Pall Corp. 196,188 3,400 Intimate Brands Inc. 51,000
3,400 Schlumberger Ltd. 235,450 8,800 Wal Mart Stores Inc. 196,900
------- 6,800 Walgreen Co. 203,150
669,575 -----------
------- 647,337
MACHINERY & CAPITAL GOODS (2.6%) -----------
3,400 Emerson Electric Co. 277,950 TELECOMMUNICATIONS (2.8%)
3,900 Ingersoll Rand Co. 136,987 4,300 AT & T Corp. 278,425
------- 3,900 GTE Corp. 171,600
414,937 -----------
------- 450,025
MANUFACTURING - DIVERSIFIED (4.2%) -----------
6,800 Masco Corp. 213,350 TRANSPORTATION (2.5%)
3,900 Minnesota Mining & Manufacturing Co. 258,375 2,300 Norfolk Southern Corp. 182,563
2,600 TRW Inc. 201,500 3,400 Union Pacific Corp. 224,400
------- -----------
673,225 406,963
------- -----------
METALS/MINING (1.3%) UTILITIES (0.8%)
7,800 Cyprus Amax Minerals Co. 203,775 2,700 Consolidated Natural Gas Co. 122,513
------- -----------
Total Common Stocks 13,780,969
PAPER AND FOREST PRODUCTS (2.2%) -----------
2,300 Consolidated Papers Inc. 129,088 (cost $12,347,538)
5,900 International Paper Co. 223,462
-------
352,550
------- PRINCIPAL
---------
POLLUTION CONTROL (2.3%) REPURCHASE AGREEMENT (14.3%)
5,000 Browning Ferris Industries 147,500 $2,305,000 Lehman Government Securities Inc.,
7,300 WMX Technologes, Inc. 218,088 5.96%, due 01/02/96, Collateralized by
------- $2,415,000 FNMA Discount Note, due
365,588 06/21/96 - Market value ($2,353,659)
------- (cost $2,305,000) 2,305,000
PRINTING & PUBLISHING (2.8%) -----------
4,100 Gannett Inc. 251,637
2,300 McGraw Hill Companies Inc. 200,388 Total Investments 16,085,969
------- (cost $14,652,538)
452,025 Other Assets
------- Less Liabilities (0.2)% 33,067
-----------
Net Assets $16,119,036
===========
<FN>
* Denotes a non-income producing security.
Cost also represents cost for Federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
</TABLE>
See accompanying notes to financial statements.
<PAGE> 18
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Government Asset Small Company Large Company
Bond Allocation Growth Growth
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $8,412,223, $3,853,578, $5,594,808
and $12,347,538, respectively) $ 8,702,239 $ 4,240,654 $ 5,733,571 $ 13,780,969
Repurchase agreements (cost $204,000,
$1,180,000, $894,000, and $2,305,000, respectively) 204,000 1,180,000 894,000 2,305,000
------------ ------------ ------------ -------------
Total investments 8,906,239 5,420,654 6,627,571 16,085,969
Cash 325 327 463 979
Receivable for investment securities sold - - 18,547 -
Receivable for futures variation margin - 1,050 350 -
Interest and dividends receivable 94,090 24,090 3,426 31,456
Receivable from advisor (note 2) 18,151 7,966 37,744 7,445
Deferred organization expenses (note 1) 8,790 10,598 10,904 10,592
------------ ------------ ------------ -------------
Total assets 9,027,595 5,464,685 6,699,005 16,136,441
------------ ------------ ------------ -------------
LIABILITIES
Administration fee payable (note 2) 2,376 988 1,321 3,196
Other accrued expenses 9,123 9,192 12,482 14,209
------------ ------------ ------------ -------------
Total liabilities 11,499 10,180 13,803 17,405
------------ ------------ ------------ -------------
NET ASSETS $ 9,016,096 $ 5,454,505 $ 6,685,202 $ 16,119,036
------------ ------------ ------------ -------------
NET ASSETS CONSIST OF:
Paid-in capital (note 3) $ 8,726,080 $ 5,067,429 $ 6,571,121 $ 14,683,452
Net unrealized appreciation 290,016 391,021 135,603 1,433,431
Accumulated undistributed (distributions in excess of)
realized gain - (3,945) (21,729) 999
Accumulated undistributed net investment income - - 207 1,154
------------ ------------ ------------ -------------
Net Assets $ 9,016,096 $ 5,454,505 $ 6,685,202 $ 16,119,036
------------ ------------ ------------ -------------
Shares of beneficial interest outstanding, no par
value (unlimited number of shares authorized) 860,451 485,092 580,225 1,329,429
------------ ------------ ------------ -------------
NET ASSET VALUE, redemption and offering
price per share $ 10.48 $ 11.24 $ 11.52 $ 12.12
----- ----- ----- -----
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 19
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Government Asset Small Company Large Company
Bond Allocation Growth Growth
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income $ - $ 32,620 $ 15,354 $ 165,528
Interest income 486,746 129,844 26,323 83,906
---------- ----------- ---------- ----------
Total investment income 486,746 162,464 41,677 249,434
---------- ----------- ---------- ----------
EXPENSES (NOTE 2):
Investment advisory fees 30,138 24,403 19,921 55,524
Administration fees 16,073 8,367 7,356 20,501
Auditing fees 17,548 8,751 6,546 20,016
Legal fees 14,401 7,018 4,278 14,645
Custodian fees 4,800 9,900 38,000 13,014
Insurance expense 6,852 3,478 2,868 8,233
Other 8,706 6,496 6,280 7,907
---------- ----------- ---------- ----------
Total expenses 98,518 68,413 85,249 139,840
Less waived and reimbursed expenses (48,289) (33,552) (57,665) (62,961)
---------- ----------- ---------- ----------
Net expenses 50,229 34,861 27,584 76,879
---------- ----------- ---------- ----------
NET INVESTMENT INCOME $ 436,517 $ 127,603 $ 14,093 $ 172,555
---------- ----------- ---------- ----------
Net realized gain on investments (note 4) 128,998 97,556 225,307 96,379
Net realized gain on financial futures (note 4) - - 15,480 -
Net change in unrealized appreciation
(depreciation) on investments 445,748 421,725 153,991 1,449,235
Net change in unrealized gain on financial futures - 3,945 (3,160) -
---------- ----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 574,746 523,226 391,618 1,545,614
---------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,011,263 $ 650,829 $ 405,711 $ 1,718,169
---------- ----------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 20
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Government Bond Asset Allocation
Year Ended August 1, - Year Ended August 1, -
December 31, December 31, December 31, December 31,
1995 1994 * 1995 1994 *
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
NET ASSETS, BEGINNING OF PERIOD (NOTE 1) $ 5,111,981 $ 25,000 $ 2,062,929 $ 25,000
------------ ---------- ----------- -----------
FROM OPERATIONS:
Net investment income 436,517 113,600 127,603 11,861
Net realized gain (loss) on investments 128,998 (5,471) 97,556 -
Net change in unrealized appreciation
(depreciation) of investments 445,748 (155,732) 425,670 (34,649)
------------ ---------- ----------- -----------
Increase (decrease) in net
assets from operations 1,011,263 (47,603) 650,829 (22,788)
------------ ---------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (436,517) (113,600) (127,603) (11,861)
In excess of net investment income (47) (1,278) (129) (225)
Net realized gain from investment transactions (123,527) - (97,556) -
In excess of realized gain from investment
transaction - - (3,945) -
------------ ---------- ----------- -----------
Decrease in net assets from
distributions to shareholders (560,091) (114,878) (229,233) (12,086)
------------ ---------- ----------- -----------
SHARE TRANSACTIONS (NOTE 3):
Net proceeds from sale of shares 2,839,265 5,304,675 2,810,916 2,091,463
Net asset value of shares issued to
shareholders from reinvestment of
dividends and distributions 644,533 30,437 241,319 -
Cost of shares redeemed (30,855) (85,650) (82,255) (18,660)
------------ ---------- ----------- -----------
Increase in net assets from
share transactions 3,452,943 5,249,462 2,969,980 2,072,803
------------ ---------- ----------- -----------
NET INCREASE IN NET ASSETS 3,904,115 5,086,981 3,391,576 2,037,929
------------ ---------- ----------- -----------
NET ASSETS -- END OF PERIOD $ 9,016,096 $ 5,111,981 $ 5,454,505 $ 2,062,929
------------ ---------- ----------- -----------
Undistributed (distributions in excess of) net
investment income in net assets at
end of period $ - $ (1,278) $ - $ (225)
------------ ---------- ----------- -----------
</TABLE>
*Initial public offering was August 1, 1994. See note 1.
See accompanying notes to financial statements.
18
<PAGE> 21
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH LARGE COMPANY GROWTH
-------------------------------- ---------------------------------
YEAR ENDED AUGUST 1, - YEAR ENDED AUGUST 1, -
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31
1995 1994 * 1995 1994 *
-------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
NET ASSETS, BEGINNING OF PERIOD (NOTE 1) $ 940,171 $ 25,000 $ 4,174,658 $ 25,000
---------- -------- ----------- ----------
FROM OPERATIONS:
Net investment income (loss) 14,093 (294) 172,555 18,535
Net realized gain (loss) on investments 240,787 (3,504) 96,379 7,338
Net change in unrealized appreciation
(depreciation) of investments 150,831 (15,228) 1,449,235 (15,804)
---------- -------- ----------- ----------
Increase (decrease) in net
assets from operations 405,711 (19,026) 1,718,169 10,069
---------- -------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (13,886) - (172,344) (17,592)
Net realized gain from investment transactions (240,787) - (95,380) (7,338)
In excess of realized gain on investment transactions (18,225) - - -
---------- -------- ----------- ----------
Decrease in net assets from
distributions to shareholders (272,898) - (267,724) (24,930)
---------- -------- ----------- ----------
SHARE TRANSACTIONS (NOTE 3):
Net proceeds from sale of shares 5,384,494 937,940 10,232,823 4,159,923
Net asset value of shares issued to
shareholders from reinvestment of
dividends and distributions 272,898 - 287,675 4,980
Cost of shares redeemed (45,174) (3,743) (26,565) (384)
---------- -------- ----------- ----------
Increase in net assets from
share transactions 5,612,218 934,197 10,493,933 4,164,519
---------- -------- ----------- ----------
NET INCREASE IN NET ASSETS 5,745,031 915,171 11,944,378 4,149,658
---------- -------- ----------- ----------
NET ASSETS -- END OF PERIOD $6,685,202 $940,171 $16,119,036 $4,174,658
---------- -------- ----------- ----------
Undistributed (distributions in excess of) net
investment income in net assets at
end of period $ 207 $ - $ 1,154 $ 943
---------- -------- ---------- -------
</TABLE>
*Initial public offering was August 1, 1994. See note 1.
See accompanying notes to financial statements.
19
<PAGE> 22
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS OF THE TRUST
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
GOVERNMENT BOND ASSET ALLOCATION
--------------- ----------------
YEAR ENDED AUGUST 1, - YEAR ENDED AUGUST 1, -
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 * 1995 1994 *
--------------------------------- ------------------------------
<S> <C> <C> <C> <C>
NET ASSETS, BEGINNING OF PERIOD $ 9.69 $10.00 $ 9.81 $10.00
------- ------ ------- ------
INCOME FROM OPERATIONS:
Net investment income 0.64 0.22 0.36 0.06
Net realized and unrealized gain (loss)
on investments 0.94 (0.31) 1.64 (0.19)
------- ------ ------- ------
Total from operations 1.58 (0.09) 2.00 (0.13)
------- ------ ------- ------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.64) (0.22) (0.36) (0.06)
Net realized gains on investments (0.15) - (0.21) -
------- ------ ------- ------
Total distributions (0.79) (0.22) (0.57) (0.06)
------- ------ ------- ------
NET ASSET VALUE -- END OF PERIOD $ 10.48 $ 9.69 $ 11.24 $ 9.81
======= ====== ======= ======
Total return 16.7% (0.9)% 20.7% (1.3)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $9,016 $5,112 $5,455 $2,063
Ratio of expenses to average net assets 0.75% 0.75% 1.00% 1.00%
Ratio of expenses to average net assets
excluding waivers/reimbursements 1.47% 1.94% 1.96% 2.36%
Ratio of net investment income to
average net assets 6.54% 6.09% 3.66% 1.88%
Ratio of net investment income to average net
assets excluding waivers/reimbursements 5.80% 4.90% 2.70% 0.52%
Portfolio turnover 34.1% 3.5% 66.3% ---
</TABLE>
*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
See accompanying notes to financial statements.
20
<PAGE> 23
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS OF THE TRUST
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH LARGE COMPANY GROWTH
-------------------- --------------------
YEAR ENDED AUGUST 1, - YEAR ENDED AUGUST 1, -
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 * 1995 1994 *
---------------------------- ------------------------------
<S> <C> <C> <C> <C>
NET ASSETS, BEGINNING OF PERIOD $ 9.70 $10.00 $ 9.99 $10.00
------ ------ ------- ------
INCOME FROM OPERATIONS:
Net investment income 0.04 - 0.20 0.05
Net realized and unrealized gain (loss)
on investments 2.29 (0.30) 2.20 0.01
------ ------ ------- ------
Total from operations 2.33 (0.30) 2.40 0.06
------ ------ ------- ------
LESS DISTIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.04) - (0.20) (0.05)
Net realized gains on investments (0.47) - (0.07) (0.02)
------ ------ ------- ------
Total distributions (0.51) - (0.27) (0.07)
------ ------ ------- ------
NET ASSET VALUE -- END OF PERIOD $11.52 $ 9.70 $ 12.12 $ 9.99
====== ====== ======= ======
Total return 24.1% (3.0%) 24.1% 0.5%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $6,685 $ 940 $16,119 $4,175
Ratio of expenses to average net assets 0.90% 0.90% 0.90% 0.90%
Ratio of expenses to average net assets
excluding waivers/reimbursements 2.78% 2.96% 1.64% 2.08%
Ratio of net investment income to
average net assets 0.46% (0.17%) 2.02% 1.39%
Ratio of net investment income to average net
assets excluding waivers/reimbursements (1.42%) (2.22%) 1.28% 0.22%
Portfolio turnover 193.3% 3.5% 37.4% 4.4%
</TABLE>
*Initial public offering was August 1, 1994. See note 1.
Ratios are annualized for periods less than one year. Total return
and portfolio turnover are not annualized
See accompanying notes to financial statements.
21
<PAGE> 24
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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 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) GROUPSM Variable Annuity.
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., an affiliate
of NFS, serves as the Transfer Agent to the Trust.
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:
FUND SHARES PROCEEDS
---- ------ --------
Government Bond 2,500 $25,000
Asset Allocation 2,500 25,000
Small Company Growth 2,500 25,000
Large Company Growth 2,500 25,000
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 Small Company Growth 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.
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.
22
<PAGE> 25
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, Continued
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.
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. 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. Banc One is entitled to receive a fee from the Funds at the following
annual rates: .45% of the average daily net assets of the Government Bond
Fund, .65% of the average daily net assets of the Small Company Growth Fund
and the Large Company Growth Fund, and .70% of average daily net assets of the
Asset Allocation Fund. Such fees are calculated daily and paid monthly.
23
<PAGE> 26
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, Continued
NOTE 2 - AGREEMENTS (CONTINUED)
As Administrator, NFS assists in supervising the operations of the Trust. For
its services, NFS is entitled to receive 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. During the year ended
December 31, 1995, the Administrator voluntarily waived fees in the amount of
$1,184 in the Asset Allocation Fund representing $.004 per share.
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,
.90% of the average daily net assets of each of the Small Company Growth Fund
and the Large Company Growth Fund, and no more than 1.00% of the average daily
net assets of the Asset Allocation Fund. Effective May 1, 1996, the Small
Company Growth and Large Company Growth Funds will change their expense limits
to 1.10% and 1.00%, respectively. During the year ended December 31, 1995, the
Investment Advisor voluntarily waived fees and reimbursed expenses in the
amount of $48,289 in the Government Bond Fund, $32,368 in the Asset Allocation
Fund, $57,665 in the Small Company Growth Fund and $62,961 in the Large
Company Growth Fund, representing $.074, $.100, $.212 and $.092 per share,
respectively.
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 year ended December 31, 1995 and the
period ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
Year ended December 31, 1995 August 1 through December 31, 1994
Reinvestment Reinvestment
Shares Purchases of Dividends Redemptions Purchases of Dividends Redemptions
------ --------- ------------ ----------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Government Bond 272,833 62,835 (2,974) 530,985 3,093 (8,821)
Asset Allocation 260,452 21,991 (7,550) 209,567 - (1868)
Small Company Growth 463,544 23,720 (3,975) 94,832 - (396)
Large Company Growth 889,236 24,630 (2,361) 414,970 492 (38)
Dollars
-------
Government Bond $2,839,265 644,533 (30,855) 5,304,675 30,437 (85,650)
Asset Allocation 2,810,917 241,319 (82,256) 2,091,463 - (18,660)
Small Company Growth 5,384,494 272,898 (45,174) 937,940 - (3,743)
Large Company Growth 10,232,823 287,675 (26,565) 4,159,923 4,980 (384)
</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 period ended December 31, 1995 are summarized as
follows:
24
<PAGE> 27
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, Continued
NOTE 4 - INVESTMENT TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Government Bond $ 3,231,883 $ 1,182,394
Asset Allocation 2,501,897 946,939
Small Company Growth 10,017,633 5,185,334
Large Company Growth 11,122,876 2,714,103
U.S. Government Obligations
Purchases Sales
--------- -----
Government Bond $2,019,871 $ 924,000
Asset Allocation 1,756,194 1,127,039
Small Company Growth 14,812 -
Large Company Growth - -
</TABLE>
The Asset Allocation and Small Company Growth 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 fund 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.
Net unrealized appreciation on investments and financial futures at December
31, 1995, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
Unrealized Unrealized Net Unrealized
Appreciation Depreciation Appreciation
------------ ------------ ------------
<S> <C> <C> <C>
Government Bond $ 290,016 $ - $ 290,016
Asset Allocation 443,409 ( 56,333) 387,076
Small Company Growth 454,146 (362,743) 91,403
Large Company Growth 1,572,468 (139,037) 1,433,431
</TABLE>
25
<PAGE> 28
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, CONTINUED
NOTE 5 - SHARES HELD BY AFFILIATES
As of December 31, 1995, Nationwide Life and Annuity Insurance Company
beneficially owned shares of the Funds with the following net asset values:
Government Bond $5,782,043
Asset Allocation 1,161,138
Small Company Growth 30,084
Large Company Growth 3,743,368
As of December 31, 1995, Banc One Capital Corporation owned shares of the Asset
Allocation Fund with a net asset value of $535,910.
NOTE 6 - DISTRIBUTIONS OF LONG-TERM CAPITAL GAINS
During the year ended December 31, 1995, the Government Bond Fund, Asset
Allocation Fund and Large Company Growth Fund paid to shareholders $.1475,
$.0600 and $.0250 per share, respectively, from net realized long-term capital
gains.
26
<PAGE> 29
PRICE WATERHOUSE LLP [LOGO]
PRICE WATERHOUSE LLP
REPORT OF INDEPENDENT ACCOUNTANTS
February 23, 1996
To the Trustees and Shareholders of
The One(R) Group(SM) Investment Trust
In our opinion, the accompanying statements of assets and liabilities,
including the statements of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of The Government Bond
Fund, the Asset Allocation Fund, the Small Company Growth Fund, and the Large
Company Growth Fund (constituting The One(R) Groups(SM) Investment Trust,
hereafter referred to as the "Trust") at December 31, 1995, the results of each
of their operations for the year then ended, the changes in each of their net
assets and the financial highlights for each of the periods presented, in
comformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at December 31, 1995 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
/s/PRICE WATERHOUSE LLP
27
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