<PAGE> 1
================================================================================
THE ONE(R) GROUP(SM) INVESTMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
(UNAUDITED)
================================================================================
<PAGE> 2
THE ONE(R) GROUP(SM) INVESTMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
TABLE OF CONTENTS
<TABLE>
<S> <C>
Statements of Investments:
Government Bond Fund................................................................ 1
Asset Allocation Fund............................................................... 2
Growth Opportunities Fund........................................................... 5
Large Company Growth Fund........................................................... 8
Statements of Assets and Liabilities..................................................... 10
Statements of Operations................................................................. 11
Statements of Changes in Net Assets...................................................... 12
Financial Highlights..................................................................... 14
Notes to Financial Statements............................................................ 16
</TABLE>
<PAGE> 3
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GOVERNMENT BOND FUND
STATEMENT OF INVESTMENTS -- JUNE 30,1997 (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------
PRINCIPAL SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
U. S. GOVERNMENT AND AGENCY OBLIGATIONS
(25.3%)
$1,000,000 Resolution Funding Corp.,
Principal STRIP, 2000 $ 814,469
2,000,000 Resolution Funding Corp.,
Principal STRIP, 2016 514,858
2,000,000 Resolution Funding Corp.,
Principal STRIP, 2020 407,878
1,000,000 U. S. Treasury Bond, 6.25%, 2023 925,312
900,000 U. S. Treasury Notes, 7.50%,
2001 937,968
750,000 U. S. Treasury Notes, 6.50%,
2005 748,125
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(cost $4,443,270) 4,348,610
-----------
MORTGAGE-BACKED SECURITIES (68.2%)
302,345 FHLMC GOLD 5Y,
Pool #G50324, 6.50%, 2001 303,491
303,437 FHLMC GOLD 15Y,
Pool #E20150, 8.50%, 2009 314,112
279,789 FHLMC GOLD 15Y,
Pool #E62574, 6.50%, 2011 274,570
872,337 FHLMC GOLD 15Y,
Pool #G63959, 7.00%, 2011 872,301
903,989 FHLMC GOLD 30Y,
Pool #D55955, 8.00%, 2024 927,609
944,837 FHLMC GOLD 30Y,
Pool #D65545, 6.50%, 2025 907,033
984,873 FNMA GOLD 30Y,
7.00%, Pool #1936, 2005 995,162
446,580 FNMA 7Y, 7.00%
Pool #359952, 2003 449,277
716,924 FNMA 15Y, 7.50%,
Pool #279759, 2009 729,448
247,503 FNMA 15Y, 6.50%,
Pool #356206, 2011 242,630
<CAPTION>
------------------------------------------------------
PRINCIPAL SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES
(CONTINUED)
$460,141 FNMA 30Y, 6.50%,
Pool #250375, 2025 $ 440,856
974,492 FNMA 30Y, 6.50%,
Pool #341811, 2026 932,685
717,098 FNMA 30Y, 8.50%,
Pool #348707, 2026 745,165
595,023 GNSF 30Y, 7.50%,
Pool #326977, 2023 599,884
490,556 GNSF 30Y, 9.00%,
Pool #780029, 2024 519,866
877,343 GNSF 30Y, 7.00%,
Pool #404252, 2025 862,068
122,327 GNSF 30Y, 7.00%,
Pool #405535, 2025 120,197
494,927 GNSF 30Y, 7.50%,
Pool #2341, 2026 494,797
991,869 GNSF II 30Y,
8.00%, Pool #2397, 2027 1,010,883
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(cost $11,686,777) 11,742,034
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $16,130,047) 16,090,644
-----------
REPURCHASE AGREEMENT (5.9%)
1,011,000 Prudential Securities, Inc.,
6.05%, dated 06/30/97, 07/01/97,
Collateralized by $999,000 U.S.
Treasury Notes, 6.875%,
05/15/06, market value
$1,031,975 (cost $1,011,000) 1,011,000
-----------
TOTAL INVESTMENTS
(cost $17,141,047) $17,101,644
===========
</TABLE>
- --------------------------------------------------------------------------------
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
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 1
<PAGE> 4
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
COMMON STOCK (51.0%)
CAPITAL GOODS (3.6%)
1,800 BWP-IP Holding, Inc. $ 36,562
900 Case Corp. 61,988
1,600 Cooper Industries, Inc. 79,600
2,400 Emerson Electric Co. 132,150
5,900 General Electric Co. 385,713
1,700 Ingersoll Rand Co. 104,975
2,800 Teleflex, Inc. 87,500
2,200 Thermo Electron Corp.* 75,625
-----------
964,113
-----------
CONSUMER DURABLE (1.4%)
3,800 Autozone Inc.* 89,538
4,100 Chrysler Corp. 134,531
2,000 Lear Corp.* 88,750
1,100 Whirlpool Corp. 60,019
-----------
372,838
-----------
CONSUMER NON-DURABLE (5.8%)
4,000 Archer-Daniels-Midland Co. 94,000
2,700 Coca Cola Co. 182,250
1,400 Dole Foods, Inc. 59,850
2,100 McCormick & Co., Inc. 53,025
5,100 PepsiCo, Inc. 191,569
6,300 Philip Morris Companies, Inc. 279,562
900 Procter & Gamble Co. 127,125
1,900 Quaker Oats Co. 85,262
2,600 Revlon Inc. Class A* 134,712
3,100 RJR Nabisco Holding Corp. 102,300
3,100 Supervalu, Inc. 106,950
3,400 Sysco Corp. 124,100
1,100 Universal Corp. -- VA 34,925
-----------
1,575,630
-----------
CONSUMER SERVICES (2.9%)
1,400 Belo, (AH) Corp. Del A 58,275
4,400 CUC, International, Inc.* 113,575
2,300 Callaway Golf Co. 81,650
900 Walt Disney Co. 72,225
3,450 Hasbro Inc. 97,894
3,300 Hilton Hotels Corp. 87,656
1,400 MGM Grand, Inc.* 51,800
1,800 Mattel, Inc. 60,975
3,300 Time Warner, Inc. 159,225
-----------
783,275
-----------
ENERGY (3.8%)
1,300 Ashland, Inc. 60,287
1,900 Atlantic Richfield Co. 133,950
1,200 Devon Energy Corp. 44,100
1,100 Dresser Industries, Inc. 40,975
4,300 Exxon Corporation 264,450
2,100 Mapco, Inc. 66,150
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
ENERGY (CONTINUED)
2,600 Mobil Corp. $ 181,675
2,800 Tosco Corp. 83,825
2,900 USX -- Marathon Group 83,738
1,500 Weatherford Enterra, Inc.* 57,750
-----------
1,016,900
-----------
FINANCIAL SERVICES (7.7%)
200 American International Group,
Inc. 29,875
2,800 Bankamerica Corp. 180,775
800 CIGNA Corp. 142,000
3,000 Equitable Companies, Inc. 99,750
4,500 Fannie Mae 196,312
1,500 First Union Corp. 138,750
700 First Virginia Banks, Inc. 42,219
1,900 Fleet Financial Group, Inc. 120,175
1,400 Hartford Financial Services
Group 115,850
2,100 Mellon Bank Corp. 94,763
1,900 Morgan Stanley Dean Witter,
Discover & Co.* 81,819
2,200 National City Corp. 115,500
1,300 Pacific Century Financial Corp. 60,125
700 Provident Companies, Inc. 37,450
2,100 Regions Financial Corp. 66,412
2,300 SouthTrust Corp. 95,163
2,100 Suntrust Banks, Inc. 115,631
900 Transamerica Corp. 84,206
3,000 Travelers Group, Inc. 189,188
900 Washington Mutual, Inc. 53,775
-----------
2,059,738
-----------
HEALTHCARE (6.4%)
2,500 Abbott Laboratories 166,875
1,300 Amgen, Inc. 75,562
2,000 Baxter International, Inc. 104,500
1,400 Boston Scientific Corp.* 86,013
3,000 Bristol-Meyers Squibb Co. 243,000
950 Cardinal Health, Inc. 54,387
1,000 Centocor, Inc.* 31,063
2,500 Columbia/HCA Health Care Corp. 98,281
1,000 Guidant Corp. 85,000
600 HBO & Company 41,325
1,700 Lilly Eli & Co. 185,831
3,000 Merck & Co., Inc. 310,500
1,300 Phycor Inc.* 44,769
2,900 Schering-Plough Corp. 138,838
1,400 Vencor, Inc.* 59,150
-----------
1,725,094
-----------
RAW MATERIALS (2.7%)
1,300 Betzdearborn, Inc. 85,800
1,600 Du Pont (E.I.) De Nemours & Co. 100,600
1,700 Ferro Corp. 63,006
2,000 Goodrich (B.F.) Co. 86,625
1,400 Lubrizol Corp. 58,713
2,000 Monsanto Company 86,125
</TABLE>
2 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 5
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
RAW MATERIALS (CONTINUED)
1,800 Morton International, Inc. $ 54,338
1,800 Nalco Chemical Co. 69,525
1,400 Praxair, Inc. 78,400
2,700 Wellman, Inc. 46,912
-----------
730,044
-----------
RETAIL (2.8%)
2,425 Dollar General Corp. 90,937
4,000 Just For Feet, Inc.* 69,750
3,300 Kroger Co.* 95,700
5,100 Officemax, Inc.* 73,631
1,300 Outback Steakhouse, Inc.* 31,444
1,800 TJX Companies, Inc. 47,475
3,000 Toys R Us Inc.* 105,000
7,400 Wal-Mart Stores, Inc. 250,213
-----------
764,150
-----------
SHELTER (1.0%)
3,600 Kaufman & Broad Home Corp. 63,225
1,700 Masco Corp. 70,975
1,700 Pentair, Inc.* 55,888
1,300 Weyerhauser Company 67,600
-----------
257,688
-----------
TECHNOLOGY (7.9%)
800 Altera Corp.* 40,400
2,600 Analog Devices, Inc.* 69,062
1,300 Applied Materials, Inc.* 92,056
1,400 BMC Software Inc.* 77,525
1,500 Cadence Design Systems, Inc.* 50,250
2,700 Cisco Systems, Inc.* 181,237
1,300 Compaq Computer Corp.* 129,025
1,000 Dell Computer Corp.* 117,438
700 General Motors Corp. Class H 40,425
2,700 Hewlett-Packard Co. 151,200
2,000 Intel Corp. 283,625
2,600 International Business Machines 234,488
900 Lockheed Martin Corp. 93,206
1,180 Lucent Technologies, Inc. 85,034
2,800 Microsoft Corp.* 353,850
2,200 Orbital Sciences Corp.* 34,925
1,700 ROHR, Inc.* 37,294
1,100 Teradyne, Inc.* 43,175
-----------
2,114,215
-----------
UTILITIES (5.0%)
1,300 AES Corp.* 91,975
1,400 Century Telephone Enterprises,
Inc. 47,162
4,700 Edison International 116,912
2,800 Enron Corp. 114,275
2,600 GPU, Inc. 93,275
4,300 GTE Corp. 188,662
2,600 MCI Communications Corp. 99,531
1,800 MCN Corp. 55,125
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
UTILITIES (CONTINUED)
1,400 National Fuel Gas Co. $ 58,713
3,000 New York St. Electric & Gas
Corp. 62,625
3,100 SBC Communications, Inc. 191,813
2,600 Sprint Corporation 136,825
2,300 Texas Utilities Co. 79,206
-----------
1,336,099
-----------
TOTAL COMMON STOCK
(cost $12,718,939) 13,699,784
-----------
- ----------
PRINCIPAL
- ----------
CORPORATE BONDS (8.0%)
BANKS (1.9%)
$ 250,000 Banco Central Hispano
7.50%, 06/15/05 252,811
250,000 Huntington National Bank
6.75%, 06/15/03 246,834
-----------
499,645
-----------
BROKER DEALERS (1.5%)
200,000 Lehman Brothers Holdings, Inc.
8.875%, 11/01/98 206,376
200,000 Morgan Stanley Group
6.50%, 03/15/01 198,531
-----------
404,907
-----------
DIVERSIFIED FINANCE (2.1%)
100,000 Associates Corp. of North
America
6.125%, 02/01/98 100,106
250,000 Chrysler Financial Corp.
5.875%, 02/07/01 243,615
200,000 Ford Capital BV
9.375%, 05/15/01 217,224
-----------
560,945
-----------
RETAIL (0.9%)
250,000 Sears Roebuck Acceptance Corp.
7.13%, 05/02/03 252,445
-----------
TELECOMMUNICATIONS (0.7%)
200,000 Ohio Bell Telephone Co.
5.75%, 05/01/00 196,480
-----------
TRANSPORTATION (0.9%)
250,000 Hunt, J.B., Transport
6.25%, 09/01/03 239,159
-----------
TOTAL CORPORATE BONDS
(cost $2,136,524) 2,153,581
-----------
ASSET-BACKED
SECURITIES (0.5%)
128,287 Advanta Mortgage Loan Trust
94-3A2
7.60%, 07/25/10
(cost $127,550) 129,373
-----------
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 3
<PAGE> 6
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT
MORTGAGE-BACKED
SECURITIES (5.9%)
$ 511,395 FNMA 7 Year Balloon Pool
#250357
6.50%, 09/01/02 $ 507,758
115,945 FNMA Pool #270725
7.00%, 08/01/25 113,879
224,117 GNMA 15Y Pool #412559
7.00%, 02/15/11 224,751
239,695 GNMA 30Y Pool #398663
7.50%, 05/15/26 240,543
492,054 GNMA 30Y Pool #2360
7.50%, 01/20/27 491,901
-----------
TOTAL MORTGAGE-BACKED
SECURITIES
(cost $1,569,450) 1,578,832
-----------
U.S. TREASURY
OBLIGATIONS (26.6%)
50,000 U.S. Treasury Bills,
4.99-5.11%, 7/10/97 49,939
105,000 U.S. Treasury Bills,
4.84%, 08/28/97 104,144
675,000 U.S. Treasury Bond,
7.875%, 02/15/21 752,203
<CAPTION>
- ----------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
U.S. TREASURY
OBLIGATIONS (CONTINUED)
1,500,000 U.S. Treasury Note,
5.25%, 01/31/01 $ 1,451,250
$2,400,000 U.S. Treasury Note,
6.50%, 08/31/01 2,412,000
2,275,000 U.S. Treasury Note,
7.25%, 05/15/04 2,370,976
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(cost $7,156,754) 7,140,512
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $23,709,217) 24,702,082
-----------
REPURCHASE AGREEMENT (9.2%)
2,479,000 Prudential Securities, Inc.,
6.05%, dated 06/30/97,
07/01/97,
Collateralized by $2,448,000
U.S. Treasury Note, 6.875%,
05/15/06, market value
$2,528,803
(cost $2,479,000) 2,479,000
-----------
TOTAL INVESTMENTS
(cost $26,188,217) $27,181,082
===========
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
Cost for Federal income tax purposes: $26,234,009.
The abbreviations in the above statement stand for the following:
<TABLE>
<S> <C>
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
</TABLE>
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
4 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 7
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GROWTH OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
- --------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------
<C> <S> <C>
COMMON STOCK (89.5%)
BUSINESS EQUIPMENT & SERVICES
(13.1%)
6,700 America Online, Inc.* $ 372,689
5,100 Cintas Corp. 350,625
9,400 Equifax, Inc. 349,564
2,700 Fiserv, Inc.* 120,488
3,200 GTech Holdings Corp.* 103,200
1,800 HNC Software* 68,625
8,400 Manpower, Inc. 373,800
5,100 Miller Herman, Inc. 183,600
12,500 Office Depot, Inc.* 242,969
6,400 Omnicom Group 394,400
10,500 Paychex, Inc. 399,000
6,200 Reynolds & Reynolds Co. 97,650
14,400 Staples, Inc.* 334,800
4,766 Sterling Commerce, Inc.* 156,682
5,000 Sungard Data System, Inc.* 232,500
11,800 USA Waste Services, Inc.* 455,775
700 Viking Office Products, Inc.* 13,300
3,700 Wallace Computer Services, Inc. 111,231
6,000 World Access, Inc.* 123,000
-----------
4,483,898
-----------
CAPITAL GOODS (3.7%)
50 Crane Co. 2,091
4,875 Diebold, Inc. 190,125
1,900 Federal Signal Co. 47,738
4,200 Hubbell Inc. Class B 184,800
1,700 Precision Castparts Corp. 101,363
4,500 Sundstrand Corp. 243,001
12,900 U.S. Filter Corp.* 351,525
3,400 York International Corp. 156,400
-----------
1,277,043
-----------
CONSUMER DURABLE (1.6%)
5,200 Danaher Corp. 264,225
6,100 Harley Davidson, Inc. 292,419
-----------
556,644
-----------
CONSUMER NON-DURABLE (7.1%)
29,700 Coca Cola Enterprise 683,100
4,300 Dial Corp. (The) 67,188
2,600 Dole Foods, Inc. 111,150
18,500 Flowers Industries, Inc. 311,031
300 General Cigar Holdings, Inc.* 8,831
4,700 Intimate Brands, Inc. 98,700
3,700 Interstate Bakeries Corp. 219,457
4,000 Jones Apparel Group* 191,000
1,800 Lancaster Colony Corp. 87,075
4,700 McCormick & Co., Inc. 118,675
200 Nike Inc. Class B 11,675
2,900 Nine West Group, Inc.* 110,744
3,200 Payless Shoe Source* 175,000
2,100 Tambrands, Inc. 104,738
4,100 Unifi, Inc. 153,238
-----------
2,451,602
-----------
<CAPTION>
- --------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------
<C> <S> <C>
CONSUMER SERVICES (3.2%)
2,300 Belo, (AH) Corp. Series A $ 95,739
6,400 Callaway Golf Co. 227,200
3,600 Hasbro, Inc. 102,150
10,700 International Game Technology 189,925
15,600 Mirage Resorts, Inc.* 393,900
1,800 Promus Hotel Corp.* 69,750
-----------
1,078,664
-----------
ENERGY (7.7%)
4,900 Anadarko Petroleum Corp. 294,000
6,800 Apache Corp. 221,000
3,900 BJ Services Co.* 209,138
5,200 Ensco International, Inc.* 274,300
10,900 Global Marine, Inc.* 253,425
5,200 Nabors Industries, Inc.* 130,000
2,200 Noble Affiliates, Inc. 85,113
8,100 Noble Drilling Corp. 182,756
3,800 Reading & Bates Corp. 101,650
2,600 Smith International, Inc.* 157,950
1,400 Tidewater, Inc. 61,600
13,400 Tosco Corp. 401,164
2,200 Transocean Offshore, Inc. 159,775
3,200 Varco International, Inc.* 103,200
-----------
2,635,071
-----------
FINANCIAL SERVICES -- MISC.
(12.5%)
10,500 AFLAC, Inc. 496,125
2,000 Arm Financial Group* 40,000
3,600 Capital One Financial Corp. 135,900
11,200 Franklin Resources, Inc. 812,700
12,800 Imperial Credit Industries,
Inc.* 263,200
5,200 Money Store, Inc. 149,175
8,700 Northern Trust Corp. 420,864
4,400 Price, T Rowe & Associates, Inc. 227,150
8,800 Progressive Corp. OH 765,600
5,800 Robert Half International, Inc.* 272,963
3,700 Schwab, Charles Corp. 150,544
4,400 State Street Corp. 203,500
7,200 SunAmerica, Inc. 351,000
-----------
4,288,721
-----------
HEALTHCARE (7.4%)
4,700 Allegiance Corp. 128,075
1,800 Apria Healthcare Group, Inc.* 31,950
6,800 Biogen, Inc.* 230,350
500 Cardinal Health, Inc. 28,625
5,900 Centocor, Inc.* 183,269
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 5
<PAGE> 8
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GROWTH OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------
<C> <S> <C>
HEALTHCARE (CONTINUED)
12,000 Chiron Corp.* $ 250,500
2,000 Dentsply International, Inc. 98,000
700 HBO & Company 48,213
4,000 Health Care & Retirement* 133,500
2,350 Healthcare Compare Corp.* 123,082
5,500 Hillenbrand Industries, Inc. 261,250
7,000 Oxford Health Plans, Inc.* 502,250
1,800 Scherer R. P. Corp.* 92,925
8,400 Stryker Corp. 292,950
3,200 Watson Pharmaceuticals, Inc.* 135,200
-----------
2,540,139
-----------
MULTIPLE INDUSTRY (1.5%)
5,400 Hartford Life, Inc. Class A* 202,500
6,000 Polo Ralph Lauren Corp.* 164,250
400 Rambus, Inc.* 18,600
4,000 Santa Fe International Corp.* 136,000
-----------
521,350
-----------
RAW MATERIALS (1.3%)
6,600 Airgas, Inc.* 130,763
2,400 Betzdearborn, Inc. 158,400
1,100 Crompton & Knowles Corp. 24,475
1,100 Cytec Industries, Inc* 41,113
1,700 Lyondell Petrochemical Co. 37,081
3,600 RPM, Inc., Ohio 66,150
-----------
457,982
-----------
RETAIL (6.1%)
3,400 Bed, Bath and Beyond, Inc.* 103,275
4,300 Claires Stores, Inc. 75,250
600 CompUSA, Inc.* 12,900
7,531 Consolidated Stores Corp.* 261,711
11,631 Dollar General Corp.* 436,164
31,600 Just For Feet, Inc.* 551,025
4,200 Kohls Corp.* 222,338
2,700 Lands End, Inc.* 79,988
3,700 Outback Steakhouse, Inc.* 89,494
3,500 Starbucks Corp.* 136,281
2,700 Tiffany & Co. 124,706
-----------
2,093,132
-----------
SHELTER (2.5%)
2,000 Hon Industries, Inc. 88,500
7,700 Leggett & Platt, Inc. 331,100
500 Masco Corp. 20,875
2,800 Redwood Trust, Inc. 130,900
3,500 Sealed Air Corp.* 166,250
9,400 Sunstone Hotel Investors, Inc. 136,300
-----------
873,925
-----------
<CAPTION>
- --------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------
<C> <S> <C>
TECHNOLOGY (18.3%)
10,400 Advanced Fibre Communications,
Inc.* $ 627,900
5,000 Advanced Micro Devices, Inc.* 180,000
1,900 American Power Conversion Corp.* 36,100
1,200 Applied Materials, Inc.* 84,975
500 Aris Corporation* 10,938
10,675 3COM Corp.* 480,375
8,400 A D C Telecommunications, Inc.* 280,350
100 Adobe Systems, Inc. 3,506
9,000 Altera Corp.* 454,500
7,333 Analog Devices, Inc.* 194,784
11,700 Ascend Communications, Inc.* 460,688
7,500 Atmel Corp.* 210,000
8,600 BMC Software, Inc.* 476,225
8,200 Cadence Design System, Inc.* 274,700
2,900 Cascade Communication Corp.* 80,113
900 Cirrus Logic, Inc.* 9,450
10,100 Compuware Corp.* 482,275
1,500 Dell Computer Corp.* 176,156
3,100 Electronic Arts, Inc.* 104,238
500 Great Plains Software* 13,500
1,300 Hewlett-Packard Co.* 72,800
12,000 Informix Corp.* 108,000
3,000 Integrated Device Technology,
Inc.* 31,500
700 KLA Instruments Corp.* 34,125
3,100 Linear Technology Corp. 160,425
2,600 Maxim Integrated Products, Inc.* 147,875
100 Seagate Technology* 3,519
3,200 Solectron Corp.* 224,200
2,800 Structural Dynamics Research
Corp.* 73,500
1,200 Symbol Technology, Inc.* 40,350
10,500 Teradyne, Inc.* 412,125
1,800 Varian Associates, Inc. 97,650
4,700 Xilinx, Inc.* 230,595
-----------
6,277,437
-----------
TRANSPORTATION (0.6%)
5,500 Illinois Central Corp. Series A 192,156
-----------
UTILITIES (2.9%)
10,100 360 Communications Company* 172,963
8,900 AES Corp.* 629,675
1,100 LCI International, Inc.* 24,063
5,200 Seagull Energy Corp. 91,000
1,600 Southern New England
Telecommunications Corp. 62,200
-----------
979,901
-----------
TOTAL COMMON STOCK
(cost $26,946,634) 30,707,665
-----------
</TABLE>
6 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 9
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GROWTH OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
---------------------------------------------------------
PRINCIPAL SECURITY VALUE
---------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS
(0.1%)
U.S. Treasury Bills
$ 15,000 5.14-5.15%, 07/17/97 $ 14,966
15,000 4.98%-5.15%, 08/07/97 14,923
20,000 5.02%, 08/14/97 19,876
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(cost $49,762) 49,765
------------
TOTAL INVESTMENTS IN
SECURITIES
(cost $26,996,396) 30,757,430
------------
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (10.9%)
$3,736,000 Prudential Securities, Inc.,
6.05%, dated 06/30/97,
07/01/97, Collateralized by
$3,689,000 U.S. Treasury Note,
6.875%, 05/15/06, market value
$3,810,766
(cost $3,736,000) $ 3,736,000
------------
TOTAL INVESTMENTS
(cost $30,732,396) $ 34,493,430
============
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
Cost for Federal income tax purposes: $30,926,518.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 7
<PAGE> 10
THE ONE(R) GROUP(SM)INVESTMENT TRUST
LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENT -- JUNE 30,1997 (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
COMMON STOCK (94.5%)
BUSINESS AND EQUIPMENT (1.8%)
11,500 Automatic Data Processing, Inc. $ 540,500
1,700 Computer Science Corp. 122,613
9,100 Interpublic Group Cos., Inc. 557,944
-----------
1,221,057
-----------
CAPITAL GOODS (8.8%)
16,400 Emerson Electric Co. 903,025
1,900 Fluor Corp. 104,856
53,100 General Electric Co. 3,471,412
4,100 Honeywell, Inc. 311,087
4,800 Illinois Tool Works, Inc. 239,700
7,200 Ingersoll Rand Co. 444,600
9,000 Molex, Inc. 328,500
3,300 Thermo Electron Corp. 113,438
4,100 Tyco International Ltd. 285,206
-----------
6,201,824
-----------
CONSUMER DURABLE (0.2%)
6,200 Autozone, Inc.* 146,088
-----------
CONSUMER NON DURABLE (19.8%)
10,600 Anheuser-Busch Co. 444,537
34,700 Coca Cola Co. 2,342,250
13,100 Colgate-Palmolive Co. 854,775
4,500 CPC International, Inc. 415,406
7,000 Eastman Kodak Co. 537,250
9,387 Gillette Company 889,418
19,700 Heinz (H.J) Company 908,663
2,400 Hershey Foods Corp. 132,750
1,400 International Flavor and 70,700
Fragrances
3,800 Newell Co. 150,575
6,200 Nike Inc. Class B 361,925
33,300 PepsiCo, Inc. 1,250,831
49,200 Philip Morris Cos., Inc. 2,183,250
3,400 Pioneer Hi Bred International, 272,000
Inc.
12,000 Procter & Gamble Co. 1,695,000
1,200 Quaker Oats Co. 53,850
12,000 Sara Lee Corp. 499,500
8,400 Sysco Corp. 306,600
2,400 Unilever N.V. 523,200
-----------
13,892,480
-----------
CONSUMER SERVICES (5.6%)
7,400 CUC International, Inc.* 191,013
12,000 Disney, Walt Co. 963,000
7,700 Gannett Company, Inc. 760,375
8,200 Hilton Hotels Corp. 217,812
8,400 Mattel, Inc. 284,550
13,500 McGraw-Hill Cos., Inc. 793,969
14,700 Time Warner, Inc. 709,275
-----------
3,919,994
-----------
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
ENERGY (1.6%)
2,400 Halliburton Co. $ 190,200
1,000 Mobil Corp. 69,875
4,300 Schlumberger Ltd. 537,500
6,235 Union Pacific Resource Group, 155,096
Inc.
5,000 Unocal Corp. 194,062
-----------
1,146,733
-----------
FINANCIAL SERVICES (6.6%)
8,000 American Express Co. 596,000
8,350 American International Group, 1,247,281
Inc.
8,900 Chase Manhattan Corp. 863,856
23,600 Federal National Mortgage 1,029,550
Association
2,800 First Union Corp. 259,000
2,400 Marsh & McLennan Cos., Inc. 171,300
1,900 Morgan, J P & Co., Inc. 198,312
4,300 U.S. Bancorp 275,738
-----------
4,641,037
-----------
HEALTHCARE (18.7%)
17,600 Abbott Laboratories 1,174,800
15,600 Alza Corp.* 452,400
7,700 American Home Products Grp. 589,050
6,700 Amgen, Inc. 389,437
3,000 Baxter International, Inc. 156,750
3,300 Boston Scientific, Inc. 202,744
16,800 Bristol-Meyers Squibb Co. 1,360,800
4,750 Cardinal Health, Inc. 271,938
4,600 Columbia/HCA Health Care Corp. 180,838
11,500 Elan Plc ADR* 520,375
400 Guidant Corp. 34,000
2,800 HealthSouth Corp. 69,825
19,000 Johnson & Johnson Co. 1,223,125
10,600 Lilly Eli & Co. 1,158,713
6,500 Medtronic, Inc. 526,500
22,600 Merck & Co., Inc. 2,339,100
11,300 Pfizer, Inc. 1,350,350
11,100 Schering-Plough Corp. 531,412
4,800 Warner-Lambert Co. 596,400
-----------
13,128,557
-----------
MULTIPLE INDUSTRY (1.5%)
2,800 Allied-Signal, Inc. 235,200
7,900 Minnesota Mining & 805,800
-----------
Manufacturing Co.
1,041,000
-----------
RAW MATERIALS (3.8%)
4,100 Air Products & Chemicals, Inc. 333,125
16,800 Du Pont (E.I.) De Nemours & Co. 1,056,300
11,500 Monsanto Company 495,219
10,800 Nalco Chemical Co. 417,150
16,800 Pall Corp. 390,600
-----------
2,692,394
-----------
</TABLE>
8 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 11
THE ONE(R) GROUP(SM) INVESTMENT TRUST
LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<C> <S> <C>
RETAIL (5.4%)
2,800 Dayton Hudson Corp. $ 148,925
6,700 Gap, Inc. 260,462
10,100 Home Depot, Inc. 696,269
8,400 Kroger Co.* 243,600
1,400 May Department Stores Co. 66,150
14,000 McDonalds Co. 676,375
42,900 Wal-Mart Stores, Inc. 1,450,556
4,300 Walgreen Co. 230,588
----------
3,772,925
----------
SHELTER (1.2%)
17,300 Kimberly Clark Corp. 860,675
----------
TECHNOLOGY (16.1%)
1,000 3COM Corp. 45,000
3,000 Applied Materials, Inc. 212,437
5,300 Cabletron System, Inc.* 150,056
15,900 Cisco Systems, Inc.* 1,067,287
5,300 Compaq Computer Corp.* 526,025
4,500 Computer Associates 250,594
International, Inc.
3,300 Dell Computer Corp. 387,544
18,800 Hewlett-Packard Co. 1,052,800
17,100 Intel Corp. 2,424,994
3,800 International Business Machines 342,713
11,975 Lucent Technologies, Inc. 862,948
23,100 Microsoft Corp.* 2,919,263
3,500 Northern Telecom Ltd. 318,500
9,650 Oracle Corp.* 486,119
2,100 Parametric Tech. 89,381
1,900 Texas Instruments, Inc. 159,719
----------
11,295,380
----------
UTILITIES (3.4%)
17,800 GTE Corp. 780,975
16,800 SBC Communications, Inc. 1,039,500
18,300 Worldcom, Inc.* 585,600
----------
2,406,075
----------
TOTAL COMMON STOCK
(cost $52,828,424) 66,366,219
----------
TOTAL INVESTMENTS IN SECURITIES
(cost $52,828,424) 66,366,219
----------
<CAPTION>
- ---------
PRINCIPAL
- ---------
<C> <S> <C>
REPURCHASE AGREEMENT (6.3%)
$4,413,000 Prudential Securities, Inc., 4,413,000
-----------
6.05%, dated 06/30/97,
07/01/97, Collateralized by
$4,358,000 U.S. Treasury Note,
6.875%, 05/15/06, market value
$4,501,848 (cost $4,413,000)
TOTAL INVESTMENTS
$70,779,219
===========
(cost $57,241,424)
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
Cost for Federal income tax purposes: $57,259,724.
The abbreviations on the above statement stand for the following:
<TABLE>
<S> <C>
ADR American Depository Receipt
PLC Public Limited Company
</TABLE>
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 9
<PAGE> 12
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT ASSET GROWTH LARGE COMPANY
BOND ALLOCATION OPPORTUNITIES GROWTH
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost
$16,130,047, $23,709,217, $26,996,396
and $52,828,424, respectively) $16,090,644 $24,702,082 $30,757,430 $66,366,219
Repurchase agreements, at cost 1,011,000 2,479,000 3,736,000 4,413,000
----------- ----------- ----------- -----------
Total investments 17,101,644 27,181,082 34,493,430 70,779,219
Cash 604 407 401 915
Receivable for investment securities sold 1,011,000 2,502,281 3,868,411 4,682,105
Receivable for fund shares sold -- 25,581 21,385 148,243
Interest and dividends receivable 120,162 183,988 18,276 83,350
Deferred organization expenses 4,452 6,269 7,035 6,262
----------- ----------- ----------- -----------
Total assets 18,237,862 29,899,608 38,408,938 75,700,094
----------- ----------- ----------- -----------
LIABILITIES
Payable for investment securities
purchased 1,011,000 3,011,921 4,054,205 5,398,973
Payable for fund shares repurchased 399 -- -- --
Management fee payable 4,094 12,215 17,639 36,334
Administration fee payable 3,334 5,097 6,609 13,370
Other accrued expenses 3,433 6,516 8,772 20,510
----------- ----------- ----------- -----------
Total liabilities 1,022,260 3,035,749 4,087,225 5,469,187
----------- ----------- ----------- -----------
NET ASSETS $17,215,602 $26,863,859 $34,321,713 $70,230,907
=========== =========== =========== ===========
REPRESENTED BY:
Capital $17,252,194 $23,642,243 $29,886,455 $55,049,463
Net unrealized appreciation (depreciation)
on investments (39,403) 992,865 3,761,034 13,537,795
Accumulated undistributed net realized
gain on investments and financial
futures 84 2,224,775 675,860 1,643,206
Accumulated undistributed net investment
income (loss) 2,727 3,976 (1,636) 443
----------- ----------- ----------- -----------
NET ASSETS $17,215,602 $26,863,859 $34,321,713 $70,230,907
=========== =========== =========== ===========
Shares of beneficial interest outstanding,
no par value (unlimited number of shares
authorized) 1,698,077 2,027,630 2,443,330 4,268,430
=========== =========== =========== ===========
NET ASSET VALUE, redemption and offering
price per share $ 10.14 $ 13.25 $ 14.05 $ 16.45
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
10 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 13
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT ASSET GROWTH LARGE COMPANY
BOND ALLOCATION OPPORTUNITIES GROWTH
---------- ---------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividend income $ -- $ 70,606 $ 70,432 $ 342,933
Interest income 542,476 370,095 77,331 114,210
-------- ---------- ---------- ----------
Total income 542,476 440,701 147,763 457,143
-------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees 34,840 69,816 88,281 175,937
Administration fees 18,581 23,937 32,596 64,961
Professional fees 4,770 5,256 7,673 14,806
Custodian fees 5,746 15,954 23,959 16,629
Insurance expense 2,529 1,720 2,205 4,807
Trustees' fees 854 974 1,424 2,764
Other 4,455 3,019 3,288 4,012
-------- ---------- ---------- ----------
Total expenses before waivers 71,775 120,676 159,426 283,916
Less waivers (13,708) (20,939) (10,027) (13,244)
-------- ---------- ---------- ----------
Net expenses 58,067 99,737 149,399 270,672
-------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) $484,409 $ 340,964 $ (1,636) $ 186,471
-------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments $ -- $1,746,577 $ 948,580 $ 1,667,737
Net realized gain on financial futures -- 510,595 149,850 --
Net change in unrealized appreciation
(depreciation) on investments (9,944) (13,390) 3,273,052 8,701,611
-------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) (9,944) 2,243,782 4,371,482 10,369,348
-------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $474,465 $2,584,746 $ 4,369,846 $10,555,819
======== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 11
<PAGE> 14
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND ASSET ALLOCATION
---------------------------- ----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1997 1996 1997 1996
---------------------------- ----------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 484,409 $ 752,961 $ 340,964 $ 328,956
Net realized gain on investments and
financial futures -- 3,774 2,257,172 283,448
Net change in unrealized appreciation
(depreciation) on investments (9,944) (319,475) (13,390) 615,234
----------- ----------- ----------- -----------
Net increase in net assets resulting
from operations 474,465 437,260 2,584,746 1,227,638
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (482,057) (752,586) (336,988) (323,941)
From net realized gain from investment
transactions -- (3,690) -- (283,448)
In excess of net realized gain from
investment transactions -- -- -- (39,340)
Tax return of capital distribution -- -- -- (30,180)
----------- ----------- ----------- -----------
Decrease in net assets from
distributions to shareholders (482,057) (756,276) (336,988) (676,909)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,461,528 5,454,874 9,543,482 8,337,534
Net asset value of shares issued to
shareholders from reinvestment of
distributions 482,057 756,276 336,988 676,909
Cost of shares redeemed (342,283) (286,338) (147,681) (136,365)
----------- ----------- ----------- -----------
Increase in net assets from capital
share transactions 2,601,302 5,924,812 9,732,789 8,878,078
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS 2,593,710 5,605,796 11,980,547 9,428,807
----------- ----------- ----------- -----------
NET ASSETS -- BEGINNING OF PERIOD 14,621,892 9,016,096 14,883,312 5,454,505
----------- ----------- ----------- -----------
NET ASSETS -- END OF PERIOD $ 17,215,602 $ 14,621,892 $ 26,863,859 $ 14,883,312
=========== =========== =========== ===========
Undistributed net realized gain (loss) on
investments and financial futures $ 84 $ 84 $ 2,224,775 $ (32,397)
=========== =========== =========== ===========
Undistributed net investment income $ 2,727 $ 375 $ 3,976 $ --
=========== =========== =========== ===========
SHARE ACTIVITY:
Shares sold 242,875 533,833 765,640 716,926
Reinvestment of distributions 48,060 75,094 26,692 57,290
Shares redeemed (33,890) (28,346) (12,204) (11,806)
----------- ----------- ----------- -----------
Net increase in number of shares 257,045 580,581 780,128 762,410
=========== =========== =========== ===========
</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 CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES LARGE COMPANY GROWTH
---------------------------- ----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1997 1996 1997 1996
---------------------------- ----------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (1,636) $ 262,476 $ 186,471 $ 377,339
Net realized gain on investments and
financial futures 1,098,430 1,332,692 1,667,737 908,100
Net change in unrealized appreciation
(depreciation) on investments 3,273,052 352,379 8,701,611 3,402,753
----------- ----------- ----------- -----------
Net increase in net assets resulting
from operations 4,369,846 1,947,547 10,555,819 4,688,192
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- (262,683) (186,028) (378,493)
From net realized gain from investment
transactions -- (1,332,692) -- (909,099)
In excess of net realized gain on
investment transactions -- (400,841) -- (24,531)
----------- ----------- ----------- -----------
Decrease in net assets from
distributions to shareholders -- (1,996,216) (186,028) (1,312,123)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 7,754,472 13,771,622 16,781,742 22,166,931
Net asset value of shares issued to
shareholders from reinvestment of
distributions -- 1,996,216 186,028 1,312,123
Cost of shares redeemed (141,406) (65,570) -- (80,813)
----------- ----------- ----------- -----------
Increase in net assets from capital
share transactions 7,613,066 15,702,268 16,967,770 23,398,241
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS 11,982,912 15,653,599 27,337,561 26,774,310
NET ASSETS -- BEGINNING OF PERIOD 22,338,801 6,685,202 42,893,346 16,119,036
----------- ----------- ----------- -----------
NET ASSETS -- END OF PERIOD $ 34,321,713 $ 22,338,801 $ 70,230,907 $ 42,893,346
=========== =========== =========== ===========
Undistributed net realized gain (loss) on
investments and financial futures $ 675,860 $ (422,570) $ 1,643,206 $ (24,531)
=========== =========== =========== ===========
Undistributed net investment income (loss) $ (1,636) $ -- $ 443 $ --
=========== =========== =========== ===========
SHARE ACTIVITY:
Shares sold 610,660 1,104,187 1,119,291 1,716,635
Reinvestment of distributions -- 164,755 12,272 97,037
Shares redeemed (11,353) (5,144) -- (6,234)
----------- ----------- ----------- -----------
Net increase in number of shares 599,307 1,263,798 1,131,563 1,807,438
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 13
<PAGE> 16
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND
---------------------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED AUGUST 1, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995 1994*
--------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 10.15 $ 10.48 $ 9.69 $10.00
-------- -------- ------ ------
Net investment income 0.30 0.59 0.64 0.22
Net realized and unrealized appreciation (depreciation) (0.01) (0.33) 0.94 (0.31)
-------- -------- ------ ------
Total from investment operations 0.29 0.26 1.58 (0.09)
-------- -------- ------ ------
Distributions from net investment income (0.30) (0.59) (0.64) (0.22)
Distributions from net realized gains
from investment transactions -- -- (0.15) --
Distributions in excess of net realized
gains from investment transactions -- -- -- --
Tax return of capital distribution -- -- -- --
-------- -------- ------ ------
Total distributions (0.30) (0.59) (0.79) (0.22)
-------- -------- ------ ------
Net increase (decrease) in net asset value (0.01) (0.33) 0.79 (0.31)
-------- -------- ------ ------
NET ASSET VALUE -- END OF PERIOD $ 10.14 $ 10.15 $10.48 $ 9.69
======== ======== ====== ======
Total return** 2.94% 2.69% 16.69% (.90%)
RATIOS AND SUPPLEMENTAL DATA:**
Net assets, end of period (000) $ 17,216 $ 14,622 $9,016 $5,112
Ratio of expenses to average net assets .75% .75% .75% .75%
Ratio of expenses to average net assets
excluding waivers/reimbursements*** .93% 1.01% 1.47% 1.94%
Ratio of net investment income to average
net assets 6.26% 6.11% 6.54% 6.09%
Ratio of net investment income to average net
assets excluding waivers/reimbursements*** 6.08% 5.85% 5.80% 4.90%
Portfolio turnover 6.1% 21.3% 34.1% 3.5%
Average commission rate paid**** -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
ASSET ALLOCATION
---------------------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED AUGUST 1, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995 1994*
-------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 11.93 $ 11.24 $ 9.81 $10.00
------- ------- ------ ------
Net investment income 0.19 0.34 0.36 0.06
Net realized and unrealized appreciation (depreciation) 1.32 0.98 1.64 (0.19)
------- ------- ------ ------
Total from investment operations 1.51 1.32 2.00 (0.13)
------- ------- ------ ------
Distributions from net investment income (0.19) (0.34) (0.36) (0.06)
Distributions from net realized gains
from investment transactions -- (0.23) (0.21) --
Distributions in excess of net realized
gains from investment transactions -- (0.04) -- --
Tax return of capital distribution -- (0.02) -- --
------- ------- ------ ------
Total distributions (0.19) (0.63) (0.57) (0.06)
------- ------- ------ ------
Net increase (decrease) in net asset value 1.32 0.69 1.43 (0.19)
------- ------- ------ ------
NET ASSET VALUE -- END OF PERIOD $ 13.25 $ 11.93 $11.24 $ 9.81
======= ======= ====== ======
Total return** 12.73% 11.92% 20.69% (1.32%)
RATIOS AND SUPPLEMENTAL DATA:**
Net assets, end of period (000) $ 26,864 $ 14,883 $5,455 $2,063
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.00%
Ratio of expenses to average net assets
excluding waivers/reimbursements*** 1.21% 1.44% 1.96% 2.36%
Ratio of net investment income to average
net assets 3.42% 3.27% 3.66% 1.88%
Ratio of net investment income to average net
assets excluding waivers/reimbursements*** 3.21% 2.83% 2.70% .52%
Portfolio turnover 53.1% 64.8% 66.3% --
Average commission rate paid**** 4.2716c 4.4023c -- --
</TABLE>
- ------------------------------------------------------
* Initial public offering was August 1, 1994.
** 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.
**** Represents the total amount of commission paid in portfolio equity
transactions divided by the total number of shares purchased and sold by
the Fund for which commissions were charged.
See accompanying notes to financial statements.
14 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 17
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES
---------------------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED AUGUST 1, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995 1994*
-------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 12.11 $ 11.52 $ 9.70 $10.00
-------- -------- ------ ------
Net investment income -- 0.18 0.04 --
Net realized and unrealized appreciation (depreciation) 1.94 1.62 2.29 (0.30)
-------- -------- ------ ------
Total from investment operations 1.94 1.80 2.33 (0.30)
-------- -------- ------ ------
Distributions from net investment income -- (0.19) (0.04) --
Distributions from net realized gains
from investment transactions -- (0.78) (0.47) --
Distributions in excess of net realized
gains from investment transactions -- (0.24) -- --
-------- -------- ------ ------
Total distributions -- (1.21) (0.51) --
-------- -------- ------ ------
Net increase (decrease) in net asset value 1.94 0.59 1.82 (0.30)
-------- -------- ------ ------
NET ASSET VALUE -- END OF PERIOD $ 14.05 $ 12.11 $11.52 $ 9.70
======== ======== ====== ======
Total return** 16.02% 15.67% 24.06% (3.00%)
RATIOS AND SUPPLEMENTAL DATA:**
Net assets, end of period (000) $ 34,322 $ 22,339 $6,685 $ 940
Ratio of expenses to average net assets 1.10% 1.06% .90% .90%
Ratio of expenses to average net assets
excluding waivers/reimbursements*** 1.17% 1.40% 2.78% 2.96%
Ratio of net investment income to average
net assets (.01%) 1.85% .46% (.17%)
Ratio of net investment income to average
net assets excluding waivers/reimbursements*** (.09%) 1.51% (1.42%) (2.22%)
Portfolio turnover 112.5% 326.9% 193.3% 3.5%
Average commission rate paid**** 5.2640c 3.1357c -- --
</TABLE>
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH
---------------------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED AUGUST 1, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995 1994*
-------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 13.67 $ 12.12 $ 9.99 $10.00
------- ------- ------- ------
Net investment income 0.05 0.16 0.20 0.05
Net realized and unrealized appreciation (depreciation) 2.78 1.86 2.20 0.01
------- ------- ------- ------
Total from investment operations 2.83 2.02 2.40 0.06
------- ------- ------- ------
Distributions from net investment income (0.05) (0.16) (0.20) (0.05)
Distributions from net realized gains
from investment transactions -- (0.30) (0.07) (0.02)
Distributions in excess of net realized
gains from investment transactions -- (0.01) -- --
------- ------- ------- ------
Total distributions (0.05) (0.47) (0.27) (0.07)
------- ------- ------- ------
Net increase (decrease) in net asset value 2.78 1.55 2.13 (0.01)
------- ------- ------- ------
NET ASSET VALUE -- END OF PERIOD $ 16.45 $ 13.67 $ 12.12 $ 9.99
======= ======= ======= ======
Total return** 20.72% 16.67% 24.13% 0.52%
RATIOS AND SUPPLEMENTAL DATA:**
Net assets, end of period (000) $ 70,231 $ 42,893 $ 16,119 $4,175
Ratio of expenses to average net assets 1.00% .98% .90% .90%
Ratio of expenses to average net assets
excluding waivers/reimbursements*** 1.05% 1.16% 1.64% 2.08%
Ratio of net investment income to average
net assets .69% 1.29% 2.02% 1.39%
Ratio of net investment income to average
net assets excluding waivers/reimbursements*** .64% 1.11% 1.28% .22%
Portfolio turnover 21.6% 38.7% 37.4% 4.4%
Average commission rate paid**** 3.4311c 3.6143c -- --
</TABLE>
- ------------------------------------------------------
* Initial public offering was August 1, 1994.
** Ratios are annualized for periods less than one year. Total return and
portfolio turnover are not annualized.
*** Ratios calculated as if no expenses were waived.
**** Represents the total amount of commission paid in portfolio equity
transactions divided by the total number of shares purchased and sold by
the Fund for which commissions were charged.
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
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
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, a subsidiary 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 Advisory Services, Inc. (NAS), (formerly Nationwide
Financial Services, Inc.), serves as Administrator to the Trust. Nationwide
Investors Services, Inc. (NIS), an affiliate of NAS, serves as the Transfer
Agent to the Trust. For its services, NIS receives an annual fee of $2,500 for
each fund.
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.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 are
being 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
Securities traded on a national securities exchange are valued at the last sale
price on the principal exchange, or if the securities are traded only in the
over-the-counter market, they are valued at the last quoted sale price, or if
there is no sale, at the quoted bid prices. Corporate debt securites and debt
securites of U.S. issuers, including municipal securities are valued on the
basis of valuations provided by dealers or by an independent pricing service
approved by the Board of Trustees. Futures contracts are valued at the
settlement price established each day by the board of trade or exchange on which
they are traded. Investments for which there are no such quotations are carried
at fair value as determined by the Advisor under the direction of the Board of
Trustees.
The funds may invest in repurchase agreements with institutions that the
investment advisor has determined are creditworthy. Each repurchase agreement is
recorded at cost. The Funds require that the securities purchased in a
repurchase agreement transaction be transferred to the custodian in a manner
sufficient to enable the Funds to obtain those securities in the event of a
counterparty default. The seller, under the repurchase agreement, is required to
maintain the value of the securities held at not less than the repurchase price,
including accrued interest. Repurchase agreements are considered to be loans
under the 1940 Act.
16 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 19
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
The Trust treats each Fund as a separate entity for Federal income tax purposes.
Each Fund intends to continue to qualify as a regulated investment company by
complying with the provisions available to certain investment companies as
defined in applicable sections of the Internal Revenue Code, and to make
distributions from net investment income and from net realized capital gains
sufficient to relieve it from all, or substantially all, Federal Income Taxes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Net realized gains or
losses from sales of securities are determined on the specific identification
method. 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.
Accordingly, as of December 31, 1996, the capital accounts have been adjusted by
the following amounts:
<TABLE>
<CAPTION>
UNDISTRIBUTED
NET INVESTMENT DISTRIBUTIONS IN EXCESS
INCOME OF NET REALIZED GAIN CAPITAL
--------------- ------------------------- ----------------
<S> <C> <C> <C>
Asset Allocation $(5,015) $41,068 $(36,053)
</TABLE>
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.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 17
<PAGE> 20
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 3 - 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 average daily net asset of the
Large Company Growth Fund. Such fees are calculated daily and paid monthly.
NAS provides administrative and accounting services to the Funds. For its
services, NAS 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
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 six
months ended June 30, 1997, the Investment Advisor voluntarily waived fees in
the amount of $13,708 in the Government Bond Fund, $20,939 in the Asset
Allocation Fund, $10,027 in the Growth Opportunities Fund and $13,244 in the
Large Company Growth Fund, representing $.018, $.026, $.009 and $.007 per
average share, respectively.
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, 1997 are summarized as
follows:
<TABLE>
<CAPTION>
SECURITIES
PURCHASES SALES
----------- -----------
<S> <C> <C>
Government Bond $ 2,548,242 $ 931,262
Asset Allocation 15,724,963 6,747,770
Growth Opportunities 34,267,970 26,922,064
Large Company Growth 27,908,267 9,227,859
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
PURCHASES SALES
----------- -----------
<S> <C> <C>
Government Bond $ 205,471 $ --
Asset Allocation 4,246,188 --
Growth Opportunities 128,330 110,000
</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 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 specific identification method.
18 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 21
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
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 (depreciation) on investments at June 30, 1997,
based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
<S> <C> <C> <C>
Government Bond $ 124,009 $ (163,412) $ (39,403)
Asset Allocation 1,031,569 (84,496) 947,073
Growth Opportunities 4,060,077 (493,165) 3,566,912
Large Company Growth 13,714,009 (194,514) 13,519,495
</TABLE>
NOTE 5 - SHARES HELD BY AFFILIATES
As of June 30, 1997, Nationwide Life and Annuity Insurance Company beneficially
owned shares of the Funds with the following net asset values:
<TABLE>
<S> <C>
Government Bond $6,112,199
Asset Allocation 1,465,039
Growth Opportunities 40,366
Large Company Growth 5,272,340
</TABLE>
As of June 30, 1997, Banc One Capital Corporation owned shares of the Asset
Allocation Fund with a net asset value of $676,174.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 19
