<PAGE> 1
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- --------------------------------------------------------------------------------
THE ONE(R) GROUP(SM) INVESTMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
(UNAUDITED)
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<PAGE> 2
THE ONE(R) GROUP(SM) INVESTMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
TABLE OF CONTENTS
<TABLE>
<S> <C>
Statements of Investments:
Government Bond Fund................................... 1
Asset Allocation Fund.................................. 3
Growth Opportunities Fund.............................. 7
Large Company Growth Fund.............................. 10
Equity Index Fund...................................... 12
Statements of Assets and Liabilities........................ 17
Statements of Operations.................................... 18
Statements of Changes in Net Assets......................... 19
Financial Highlights........................................ 21
Notes to Financial Statements............................... 26
</TABLE>
<PAGE> 3
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GOVERNMENT BOND FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(38.2%)
$1,500,000 FHLB, 6.145%, 09/30/02 $ 1,525,974
500,000 FNMA Disc. Note, 5.43%, 07/21/98 498,480
600,000 FNMA Disc. Note, 5.75%, 04/15/03
(a) 601,607
1,000,000 FNMA Medium Term Note, 6.54%,
09/10/07 1,056,636
1,000,000 Resolution Funding Corp.,
Principal STRIP, 10/15/00 882,529
1,000,000 Resolution Funding Corp.,
Principal STRIP, 10/15/16 344,639
1,000,000 Resolution Funding Corp.,
Principal STRIP, 10/15/17 325,139
2,000,000 Resolution Funding Corp.,
Principal STRIP, 01/15/20 569,238
2,000,000 Resolution Funding Corp.,
Principal STRIP, 07/15/20 550,522
1,000,000 Resolution Funding Corp.,
Principal STRIP, 10/15/20 271,247
1,000,000 U.S. Treasury Bond, 6.25%,
08/15/23 1,070,312
900,000 U.S. Treasury Notes, 7.50%,
11/15/01 953,156
1,450,000 U.S. Treasury Notes, 5.625%,
12/31/02 (a) 1,455,890
750,000 U.S. Treasury Notes, 6.50%,
08/15/05 791,719
550,000 U.S. Treasury Notes, 6.875%,
05/15/06 (a) 595,719
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS 11,492,807
-----------
(cost $10,930,434)
MORTGAGE-BACKED SECURITIES (61.6%)
111,820 FGLMC Gold 5Y, 6.50%, Pool
#G50324, 01/01/01 112,011
237,316 FGLMC Gold 15Y, 6.5%, Pool
#E62574,01/01/11 239,003
780,431 FGLMC Gold 15Y, 7.00%, Pool
#E63959, 02/01/11 794,704
912,616 FGLMC Gold 30Y, 6.50%, Pool
#D65545, 11/01/25 912,332
986,658 FGLMC Gold 30Y, 6.00%, Pool
#D70244, 04/01/26 965,089
499,520 FGLMC Gold 30Y, 6.50%, Pool
#C10103, 5/01/28 498,750
205,943 FHLMC Gold 15Y, 8.50%, Pool
#E20150, 12/01/09 214,675
562,393 FHLMC Gold 30Y, 8.00%, Pool
#D55955, 09/01/24 581,598
897,435 FNMA 30Y, 6.50%, Pool #338417,
05/01/26 895,433
285,831 FNMA 15Y, 7.50%, Pool #279759,
08/01/09 293,723
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES
(CONTINUED)
$ 236,233 FNMA 15Y, 6.50%, Pool #356206,
11/01/11 $ 237,672
417,242 FNMA 30Y, 6.50%, Pool #250375,
09/01/25 416,753
875,864 FNMA 30Y, 6.50%, Pool #341811,
03/01/26 873,910
386,690 FNMA 7Y Balloon, 7.00%, Pool
#359952, 09/01/03 392,381
882,261 FNR, G97-26E, 7.00% ,07/17/05 902,976
500,000 FNR, 98-37 VB, 6.00%, 01/17/13 492,553
1,500,000 GNR, 98-14 PG, 6.375%, 11/20/26 1,487,989
500,000 GNR, 97-19 PJ, 6.50%, 06/20/27 500,672
972,774 GNMA 30Y, 8.00%, Pool #412336,
10/15/27 1,007,666
493,952 GNMA 30Y, 7.00%, Pool #412369,
11/15/27 501,944
498,423 GNMA 30Y, 6.50%, Pool #467705,
03/15/28 497,166
498,846 GNMA 30Y, 7.00%, Pool #472543,
04/15/28 506,837
495,000 GNMA 30Y, 7.00%, Pool #472679,
06/15/28 502,929
500,000 GNMA 30Y, 7.50%, 07/01/28 513,902
916,245 GMNA 30Y, 6.00%, Pool #80094,
07/20/27 926,350
483,705 GNSF 30Y, 7.50%, Pool #326977,
05/15/23 497,949
364,630 GNSF 30Y, 9.00%, Pool #780029,
11/15/24 391,291
825,105 GNSF 30Y, 7.00%, Pool #404252,
12/15/25 839,008
115,029 GNSF 30Y, 7.00%, Pool #405535,
12/15/25 116,968
405,697 GNSF 30Y, 7.50%, Pool #2341,
12/20/26 415,964
970,562 GNSF 30Y, 7.50%, Pool #427208,
01/15/28 997,328
-----------
TOTAL MORTGAGE-BACKED SECURITIES 18,527,526
-----------
(cost $18,262,246)
SUBTOTAL INVESTMENTS 30,020,333
-----------
(cost $29,192,680)
REPURCHASE AGREEMENT (6.2%)
1,875,000 Prudential Securities, Inc.
6.10%, dated 06/30/98, due
07/01/98, Collateralized by
$1,930,000 U.S. Treasury Bill,
4.94%, due 09/03/98, market
value, $1,912,838 1,875,000
-----------
(cost $1,875,000)
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 1
<PAGE> 4
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GOVERNMENT BOND FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT
(CONTINUED)
SHORT-TERM SECURITIES HELD AS COLLATERAL
(1.7%)
$ 516,734 Paine Weber, Repurchase
Agreement 6.15%, dated 06/30/98,
due 07/01/98, collateralized by
$518,629 various U.S. Government
and Agency Obligations,
0.00%-6.185%, 10/01/98-09/18/27,
market value $521,922 $ 516,734
-----------
TOTAL INVESTMENTS $32,412,067
===========
(cost $31,584,414)
</TABLE>
- --------------------------------------------------------------------------------
Cost also represents cost for federal income tax purposes.
The abbreviations in the above statement stand for the following:
FGLMC Federal Home Loan Mortgage Corporation Gold
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNR Fannie Mae REMIC
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GNSF Ginnie Mae Single Family
GNR Ginnie Mae REMIC
REMIC Real Estate Mortgage Investment Conduit
STRIP Separate Trading of Registered Interest and Principal Securities
Portfolio holding percentages represent market value as a percentage of net
assets.
(a) A portion of this security was loaned as of June 30, 1998.
See accompanying notes to financial statements.
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 30,1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
COMMON STOCK (51.0%)
BUSINESS EQUIPMENT/SERVICES (0.7%)
3,500 Herman Miller, Inc. $ 85,094
6,500 Service Corp International 278,687
2,700 USA Waste Services, Inc.* (a) 133,313
-----------
497,094
-----------
CONSUMER DURABLE (0.7%)
6,400 Autozone, Inc.* 204,400
5,500 Chrysler Corp. 310,062
-----------
514,462
-----------
CAPITAL GOODS (3.9%)
2,300 Cooper Industries, Inc. 126,356
4,700 Emerson Electric Co. 283,762
12,800 General Electric Co. 1,164,800
4,100 Harsco Corp. 187,831
2,000 Hubbell, Inc. Class B 83,250
3,300 Johnson Controls, Inc. 188,719
1,600 Medusa Corp. 100,400
5,500 Rubbermaid, Inc. 182,531
6,400 Teleflex, Inc. 243,200
5,500 Tyco International Ltd. 346,500
-----------
2,907,349
-----------
CONSUMER NON-DURABLE (4.1%)
7,100 Coca Cola Co 607,050
6,500 ConAgra, Inc. 205,969
3,600 Interstate Bakeries Corp. 119,475
6,300 Intimate Brands, Inc. 173,644
2,500 Lancaster Colony Corp. 94,687
4,700 McCormick & Co., Inc. 167,878
6,100 Newell Co. 303,856
11,200 Philip Morris Companies, Inc. 441,000
2,500 Procter & Gamble Co. 227,656
4,300 Quaker Oats Co. 236,231
3,700 Revlon, Inc. Class A* 190,088
4,700 Sara Lee Corp. 262,907
-----------
3,030,441
-----------
CONSUMER SERVICES (2.5%)
6,600 A.H. Belo Corp. Series A 160,875
6,050 Hasbro, Inc. 237,841
7,700 Hilton Hotels Corp. 219,450
3,400 MGM Grand, Inc.* 107,313
5,681 Tele-Communications, Inc. Class
A* 218,363
5,000 Time Warner, Inc. 427,188
4,400 Viacom, Inc. Class B 256,300
2,200 Walt Disney Co. 231,137
-----------
1,858,467
-----------
ENERGY (3.7%)
3,000 Ashland, Inc. 154,875
2,700 Devon Energy Corp. (a) 94,331
2,500 Dresser Industries, Inc. 110,156
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
ENERGY (CONTINUED)
11,800 Exxon Corp. $ 841,487
7,700 Royal Dutch Petroleum Co. 422,056
7,000 Texaco, Inc. 417,813
4,200 Tosco Corp. 123,375
2,500 Transocean Offshore, Inc. 111,250
4,300 Ultramar Diamond Shamrock Corp. 135,719
8,400 USX -- Marathon Group 288,225
-----------
2,699,287
-----------
FINANCIAL SERVICES (8.8%)
2,900 Allstate Corp. 265,531
2,300 American International Group,
Inc. 335,800
1,500 Associates First Capital Corp. 115,312
2,800 Bear Stearns Co., Inc. 159,250
6,200 Charter One Financial, Inc. 208,862
5,800 Chase Manhattan Corp. 437,900
3,300 CIGNA Corp. 227,700
2,800 Equitable Companies, Inc. 209,825
6,900 Fannie Mae 419,175
6,000 First Tennessee National Corp. 189,375
4,600 First Union Corp. 267,950
2,500 Hartford Financial Services
Group, Inc. 285,937
5,400 MBNA Corp. 178,200
3,700 Mercantile Bankshares Corp. 128,806
4,900 Morgan Stanley Dean Witter Co. 447,738
4,200 National City Corp. 298,200
9,300 NationsBank Corp. 711,450
1,600 PMI Group 117,400
6,800 SouthTrust Corp. 295,800
3,200 State Street Corp. 222,400
9,900 Travelers Group, Inc. 600,188
900 Wells Fargo & Co. 332,100
-----------
6,454,899
-----------
HEALTHCARE (5.6%)
8,600 American Home Products Corp. 445,050
3,000 Bausch & Lomb, Inc. 150,375
4,100 Baxter International, Inc. 220,631
2,600 Boston Scientific Corp.* 186,225
6,100 Bristol-Meyers Squibb Co. 701,119
1,950 Cardinal Health, Inc. 182,812
4,700 IDEXX Laboratories, Inc. 116,913
2,200 Johnson & Johnson Co. 162,250
5,200 Medtronic, Inc. 331,500
3,000 Merck & Co., Inc. 401,250
2,000 Pfizer, Inc. 217,375
4,000 Schering-Plough Corp. 366,500
1,600 Sofamor Danek Group, Inc. 138,500
6,900 Warner-Lambert Co. 478,688
-----------
4,099,188
-----------
</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, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
RAW MATERIALS (1.9%)
3,000 Betzdearborn, Inc. $ 124,125
4,700 Crompton & Knowles Corp. 118,381
4,700 Du Pont (E.I.) De Nemours & Co. 350,737
5,750 Ferro Corp. 145,547
6,000 Morton International, Inc. 150,000
4,300 Nalco Chemical Co. 151,038
4,100 Olin Corp. 170,919
4,700 Praxair, Inc. 220,019
-----------
1,430,766
-----------
RETAIL (3.5%)
6,000 Dayton Hudson Corp. 291,000
9,300 Just For Feet, Inc.* 265,050
5,300 Kohls Corp. 274,938
7,700 Kroger Co.* 330,138
10,900 Officemax, Inc.* 179,850
3,100 Outback Steakhouse, Inc.* 120,900
4,100 Safeway, Inc. 166,819
12,000 Wal-Mart Stores, Inc. 729,000
6,200 Williams Sonoma, Inc. 197,238
-----------
2,554,933
-----------
SHELTER (1.4%)
1,500 Armstrong World Industries,
Inc. 101,062
6,000 Kimberly Clark Corp. 275,250
7,200 Leggett & Platt, Inc. 180,000
4,300 Masco Corp. 260,150
4,700 Pentair, Inc.* 199,750
-----------
1,016,212
-----------
TECHNOLOGY (8.2%)
4,700 American Power Conversion Corp. 141,000
3,300 Applied Materials, Inc.* 97,350
4,600 BMC Software Inc.* 238,912
5,600 Cadence Design Systems, Inc.* 175,000
7,550 Cisco Systems, Inc.* 695,072
7,400 Dell Computer Corp.* 686,812
3,300 Gateway 2000, Inc.* 167,062
6,500 Hewlett-Packard Co. 389,188
9,200 Intel Corp. 681,950
5,000 International Business Machines
Co. 574,063
2,000 Lockheed Martin Corp. 211,750
4,900 LSI Logic Corp. 113,006
5,260 Lucent Technologies, Inc. 437,566
4,200 Maxim Integrated Products, Inc 133,088
12,300 Microsoft Corp.* 1,333,013
-----------
6,074,832
-----------
UTILITIES (6.0%)
4,700 AES Corp.* 247,044
5,600 Baltimore Gas & Electric 173,950
5,000 Century Telephone Enterprises,
Inc 229,375
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
UTILITIES (CONTINUED)
5,200 Cinergy Corp. $ 182,000
4,300 El Paso Natural Gas 164,475
8,400 Energy East Corp. 349,650
6,200 GPU, Inc. 234,437
7,800 GTE Corp. 433,875
3,300 LG & E Energy Corp. 89,306
3,200 MCN Corp. 79,600
19,062 Qwest Communications
International, Inc. 664,787
13,100 SBC Communications, Inc. 524,000
6,300 Sprint Corp. 444,150
8,800 WorldCom, Inc.* (a) 426,250
6,100 Williams Cos, Inc. 205,875
-----------
4,448,774
-----------
TOTAL COMMON STOCK 37,586,704
-----------
(cost $32,010,672)
- ----------
PRINCIPAL
- ----------
<C> <S> <C>
CORPORATE BONDS (8.8%)
BANKS (2.3%)
$ 250,000 Banco Central Hispano, 7.50%,
06/15/05 266,645
250,000 BankAmerica Corp., 8.125%,
02/01/02 266,426
376,000 First Hawaiian, Inc., 6.25%,
08/15/00 377,345
250,000 Huntington National Bank,
6.75%, 06/15/03 257,122
250,000 Midland Bank PLC, 6.95%,
03/15/11 258,278
230,000 Society National Bank, 6.75%,
06/15/03 236,750
-----------
1,662,566
-----------
BROKER DEALERS (0.5%)
200,000 Lehman Brothers Holdings, Inc.,
8.875%, 11/01/98 201,721
200,000 Morgan Stanley Group, 6.50%,
03/30/01 202,444
-----------
404,165
-----------
DIVERSIFIED FINANCE (2.2%)
200,000 Associates Corp. of North
America, 6.375%, 07/15/02 202,101
300,000 Boatmen's Bancshares, Inc.,
6.75%, 03/15/03 307,986
250,000 Chrysler Financial Corp.,
5.875%, 02/07/01 249,296
200,000 Ford Capital, 9.375%, 05/15/01 216,718
250,000 GMAC Medium Term Note, 8.25%,
02/24/04 274,460
</TABLE>
4 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 7
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
DIVERSIFIED FINANCE (CONTINUED)
$ 333,000 McDonnel Douglas Finance Corp.,
6.45%, 12/05/02 $ 339,094
-----------
1,589,655
-----------
OIL & GAS (0.8%)
250,000 Columbia Gas Systems, 6.39%,
11/28/00 252,158
250,000 Occidental Petroleum, 9.25%,
08/01/19 328,614
-----------
580,772
RENTAL SERVICES (0.3%)
250,000 Hertz Corp., 6.50%, 03/30/01 247,515
-----------
RETAIL (1.1%)
250,000 Dayton Hudson Co, 7.25%,
09/01/04 264,679
250,000 J.C. Penney & Co, 7.25%,
04/01/02 259,611
250,000 Sears Roebuck Acceptance Corp.,
7.13%, 05/02/03 259,960
-----------
784,250
-----------
TELECOMMUNICATIONS (0.6%)
250,000 AT&T Corp., 7.50%, 06/01/06 270,909
200,000 Ohio Bell Telephone Co., 5.75%,
05/01/00 199,834
-----------
470,743
-----------
TRANSPORTATION (0.7%)
250,000 Hunt, J.B., Transport Services,
Inc., 6.25%, 09/01/03 249,972
250,000 International Lease Finance
Corp., 5.875%, 01/15/01 249,343
-----------
499,315
-----------
UTILITIES (0.3%)
250,000 Virginia Electric & Power Co
6.625%, 04/01/03 256,120
-----------
TOTAL CORPORATE BONDS 6,495,101
-----------
(cost $6,356,266)
ASSET-BACKED SECURITIES (0.4%)
10,402 Advanta Mortgage Loan Trust
94-3A2, 7.60%, 07/25/10 10,383
250,000 Circuit City 1995 1-A, 6.375%,
08/15/05 253,308
-----------
TOTAL ASSET-BACKED SECURITIES 263,691
-----------
(cost $261,649)
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES
(14.6%)
$ 392,942 FNMA 7 Year Balloon Pool
#250357, 6.50%, 09/01/02 $ 396,442
493,238 FNMA Pool #417081, 6.00%,
03/01/13 487,787
499,864 FNMA Pool #414513, 6.50%,
04/01/13 502,722
500,000 FNMA Pool #427488, 7.00%,
06/01/13 509,005
500,000 FNMA 15Y, 6.00%, 07/15/13 494,372
105,924 FNMA Pool #270725, 7.00%,
08/01/25 107,441
272,594 FNMA Pool #402032, 7.50%,
10/01/27 279,640
1,000,000 FNMA Pool #428970, 6.00%,
06/01/28 973,319
494,578 FHLMC Gold 15Y Pool #E69409,
6.00%, 03/01/13 489,731
494,462 FHLMC Gold 15Y Pool #E69466,
6.50%, 03/01/13 497,799
500,000 FHLMC Gold 15Y Pool #800554,
7.00%, 06/01/13 509,054
500,000 FHLMC Gold 15Y, 6.50%, 07/15/13 503,279
720,504 FHLMC Gold 30Y Pool #C00476,
8.00%, 09/01/26 744,748
413,276 FHLMC Gold 30Y Pool #D81027,
7.50%, 07/01/27 423,533
481,852 FHLMC Gold Pool #D83256, 7.00%,
10/01/27 489,190
186,402 GNMA 15Y Pool #412559, 7.00%,
02/15/11 190,930
211,140 GNMA 30Y Pool #398663, 7.50%,
5/15/26 217,012
416,825 GNMA 30Y Pool #2360, 7.50%,
01/20/27 427,333
499,618 GNMA 30Y Pool #451932, 8.00%,
09/15/27 517,749
493,496 GNMA 30Y Pool #473915, 7.00%,
04/15/28 501,401
499,560 GNMA 30Y Pool #465069, 7.50%,
05/15/28 513,337
500,000 GNMA 30Y Pool #477123, 7.00%,
06/15/28 508,010
500,000 GNMA 30Y, 6.50%, 07/15/28 498,746
-----------
TOTAL MORTGAGE-BACKED
SECURITIES 10,782,580
-----------
(cost $10,720,679)
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 5
<PAGE> 8
THE ONE(R) GROUP(SM) INVESTMENT TRUST
ASSET ALLOCATION FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (16.5%)
$ 15,000 U.S. Treasury Bills,
4.91%, 08/27/98 $ 14,883
40,000 U.S. Treasury Bills,
4.98%, 09/24/98 39,539
6,700,000 U.S. Treasury Note,
6.50%, 08/31/01 (a) 6,880,063
2,275,000 U.S. Treasury Note,
7.25%, 05/15/04 (a) 2,468,375
2,175,000 U.S. Treasury Bond,
7.875%, 02/15/21 (a) 2,760,210
-----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS 12,163,070
-----------
(cost $11,836,046)
FOREIGN GOVERNMENT OBLIGATIONS (0.7%)
500,000 Province of Quebec, 6.50%,
01/17/06 507,105
-----------
(cost $504,784)
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
SHORT TERM DEBT (1.7%)
$1,300,000 Merrill Lynch & Company,
5.51%, 09/18/98 $ 1,284,367
-----------
(cost $1,284,281)
SUBTOTAL INVESTMENTS 69,082,618
-----------
(cost $62,974,377)
REPURCHASE AGREEMENT (7.8%)
5,767,000 Prudential Securities, Inc.**
6.10%, dated 06/30/98, due
07/01/98, Collateralized by
$5,936,000 U.S. Treasury Bill,
4.94%, due 09/03/98, market
value $5,883,217 5,767,000
-----------
(cost $5,767,000)
SHORT-TERM SECURITIES HELD AS COLLATERAL
(0.9%)
669,499 Lehman Brothers, Repurchase
Agreement 6.47%, dated
06/30/98, due 07/01/98,
Collateralized by $703,110
Media One Group Commercial
Paper, 10/05/98, market value
$703,110 669,499
-----------
TOTAL INVESTMENTS $75,519,117
===========
(cost $69,410,876)
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
** Security is segregated as collateral on futures contracts.
Cost for federal income tax purposes: $68,770,752.
The abbreviations in the above statement stand for the following:
<TABLE>
<S> <C>
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
PLC Public Limited Company
</TABLE>
Portfolio holding percentages represent market value as percentage of net
assets.
(a) A portion of this security was loaned as of June 30, 1998.
At June 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
MARKET UNREALIZED
VALUE APPRECIATION
NUMBER OF COVERED BY AT
CONTRACTS CONTRACT TYPE EXPIRATION CONTRACTS 06/30/98
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5 Long -- Standard September $1,428,750 $45,263
& Poor's 500 1998
</TABLE>
See accompanying notes to financial statements.
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, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCK (97.9%)
BUSINESS EQUIPMENT/SERVICES
(14.5%)
15,800 AccuStaff, Inc.* $ 493,750
26,800 America Online, Inc.* 2,840,800
12,100 Cintas Corp. 617,100
10,900 Corrections Corp. of America* 256,150
11,250 Fiserv, Inc.* 477,773
12,200 Herman Miller, Inc. 296,612
10,100 Manpower, Inc. 289,743
26,350 Paychex, Inc. 1,072,115
4,300 Pittston Brink's Group 158,562
15,700 Reynolds & Reynolds Co. Class A 285,544
16,266 Sterling Commerce, Inc.* 788,901
18,300 Sungard Data Systems, Inc.* (a) 702,263
36,100 U.S.A. Waste Services, Inc.*
(a) 1,782,438
1,500 UniCapital Corp.* 28,688
6,300 Viking Office Products, Inc.* 197,663
6,400 Wallace Computer Services, Inc. 152,000
-----------
10,440,102
-----------
CAPITAL GOODS (3.0%)
1,900 Donaldson Co., Inc. 44,887
7,400 Fastenal Co. (a) 343,638
4,900 Federal Signal Corp. 119,131
3,200 Flowserve Corp. 78,800
3,100 Kaydon Corp. 109,469
13,350 Sonoco Products Co. 403,838
8,200 Sundstrand Corp. 469,450
6,400 U.S. Filter Corp.* (a) 179,600
4,500 UCAR International, Inc.* 131,344
12,700 Whitman Corp. 291,306
-----------
2,171,463
-----------
CONSUMER DURABLE (2.2%)
14,100 Danaher Corp. 517,294
4,900 Federal-Mogul Corp. 330,750
18,000 Harley-Davidson, Inc. 697,500
-----------
1,545,544
-----------
CONSUMER NON DURABLE (6.9%)
50,100 Coca-Cola Enterprises, Inc. (a) 1,966,425
4,800 Dean Foods Co. 263,700
12,200 Dial Corp. (The) 316,438
7,600 Dole Food Company, Inc. 377,625
10,100 Flowers Industries, Inc. 206,419
7,600 Interstate Bakeries Corp. 252,225
17,200 Jones Apparel Group, Inc.* 628,875
4,350 Lancaster Colony Corp. 164,756
12,600 McCormick & Co., Inc. 450,056
6,700 Unifi, Inc. 229,475
3,100 Vlasic Foods International,
Inc.* 62,387
-----------
4,918,381
-----------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<C> <S> <C>
CONSUMER SERVICES (2.3%)
14,200 AH Belo Corp. Series A $ 346,125
10,500 Callaway Golf Co. (a) 206,719
15,600 International Game Technology 378,300
3,200 Media General, Inc. Class A 157,600
10,375 Promus Hotel Corp.* 399,437
2,400 TCA Cable TV, Inc. 144,000
-----------
1,632,181
-----------
ENERGY (5.3%)
5,800 Camco International, Inc. 451,675
8,175 Diebold, Inc. 236,053
12,600 EVI Weatherford, Inc.* 467,775
19,200 Ensco International, Inc. 333,600
23,300 Global Marine, Inc.* 435,419
12,100 Nabors Industries, Inc.* 239,731
17,900 Noble Drilling Corp.* 430,719
6,200 Smith International, Inc.* 215,838
6,900 Tidewater, Inc. 227,700
22,100 Tosco Corp. 649,187
7,400 Varco International, Inc.* 146,612
-----------
3,834,309
-----------
FINANCIAL SERVICES (11.2%)
34,100 AFLAC, Inc. 1,033,656
7,525 Associated Banc-Corp. 283,128
10,400 Capital One Financial Corp. 1,291,550
6,500 City National Corp. 240,094
22,800 First Security Corp. 488,061
17,200 First Tennessee National Corp. 542,875
6,300 First Virginia Banks, Inc. 322,088
13,600 Marshall & Ilsley Corp. 694,450
13,900 North Fork Bancorp., Inc. 339,681
11,750 Robert Half International,
Inc.* 656,531
15,200 T. Rowe Price Associates, Inc. 570,950
11,300 TCF Financial Corp. 333,350
10,200 Union Planters Corp. 599,888
3,300 Wilmington Trust Corp. 200,887
8,400 Zions Bancorp 446,250
-----------
8,043,439
-----------
HEALTHCARE (11.0%)
6,100 Bergen Brunswig Corp. Class A 282,888
9,800 Biogen, Inc.* 480,200
9,600 Centocor, Inc.* 348,000
21,700 Chiron Corp.* (a) 340,419
1,900 Concentra Managed Care, Inc.* 49,400
9,200 Dentsply International, Inc. 230,000
10,300 First Health Group Corp.* 293,550
5,600 Health Care & Retirement Corp.*
(a) 220,850
20,500 Health Management Associates,
Inc. Class A* 685,469
7,800 Hillenbrand Industries, Inc. 468,000
9,200 ICN Pharmaceuticals, Inc. 420,325
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 7
<PAGE> 10
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GROWTH OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<C> <S> <C>
HEALTHCARE (CONTINUED)
13,100 McKesson Corp. $ 1,064,375
16,200 Mylan Laboratories, Inc. (a) 487,013
1,200 PSS World Medical, Inc.* 17,550
11,100 Quintiles Transnational Corp.* 545,981
9,500 Quorum Health Group, Inc.* 251,750
2,500 R. P. Scherer Corp.* 221,563
11,700 Stryker Corp. 448,987
12,400 Sybron International Corp.* 313,100
6,400 Total Renal Care Holdings,
Inc.* 220,800
10,900 Watson Pharmaceuticals, Inc.* 508,893
-----------
7,899,113
-----------
RAW MATERIALS (1.9%)
3,300 BetzDearborn, Inc. 136,538
9,200 Crompton & Knowles Corp. 231,725
3,700 Cytec Industries, Inc.* 163,725
10,200 Lyondell Petrochemical Co. 310,463
13,000 Solutia, Inc. 372,938
6,100 Witco Corp. 178,424
-----------
1,393,813
-----------
RETAIL (12.5%)
4,800 BJ's Wholesale Club, Inc.* 195,000
8,300 Barnes & Noble, Inc.* 310,731
9,600 Bed, Bath and Beyond, Inc.* 497,400
10,300 Borders Group, Inc.* 381,100
5,800 Claires Stores, Inc. 118,900
24,900 CompUSA, Inc.* 449,756
1 Consolidated Stores Corp.* 36
18,735 Dollar General Corp. 741,203
26,000 Family Dollar Stores, Inc. 481,000
15,600 Fred Meyer, Inc.* (a) 663,000
15,100 General Nutrition Companies,
Inc. 469,988
53,500 Just For Feet, Inc.* 1,524,750
19,500 Kohls Corp.* 1,011,563
3,800 Lands End, Inc.* 120,175
3,700 Outback Steakhouse, Inc.* 144,300
40,650 Staples, Inc.* 1,176,309
12,600 Starbucks Corp.* 673,313
-----------
8,958,524
-----------
SHELTER (1.2%)
8,100 Hon Industries, Inc. 275,400
24,200 Leggett & Platt, Inc. 605,000
-----------
880,400
-----------
TECHNOLOGY (18.8%)
17,800 ADC Telecommunications, Inc.* 650,255
17,100 Altera Corp.* 505,519
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
10,800 American Power Conversion
Corp.* $ 324,000
20,933 Analog Devices, Inc.* 514,167
26,500 BMC Software, Inc.* 1,376,344
2,500 Brio Technology, Inc* 33,438
900 Broadcom Corp. Class A* 66,263
32,600 Cadence Design Systems, Inc.* 1,018,750
21,200 Compuware Corp.* 1,083,850
3,500 Comverse Technology, Inc.* 181,563
14,500 Dell Computer Corp.* (a) 1,345,781
10,100 Electronic Arts, Inc.* 545,400
11,300 Keane, Inc.* 632,800
12,700 Lexmark International Group,
Inc.* 774,700
13,600 Linear Technology Corp. 820,250
24,100 Maxim Integrated Products,
Inc.* 763,668
13,850 Network Associates, Inc.* 663,068
12,000 SCI Systems, Inc.* (a) 451,500
19,800 Solectron Corp.* 832,838
4,000 Structural Dynamics Research
Corp.* 92,500
5,100 Symantec Corp.* 133,237
6,100 Synopsys, Inc.* 279,075
2,700 Varian Associates, Inc. 105,300
8,400 Xilinx, Inc.* 285,600
-----------
13,479,866
-----------
TRANSPORTATION (1.8%)
6,400 Airborne Freight Corp. 223,600
7,000 CNF Transportation, Inc. 297,500
92 Canadian National Railway Co. 4,887
13,500 Kansas City Southern
Industries, Inc. 669,938
3,200 Wisconsin Central
Transportation Corp.* 70,000
-----------
1,265,925
-----------
UTILITIES (5.3%)
15,300 360 degrees Communications Co.* 489,600
22,700 AES Corp.* 1,193,169
17,100 Cincinnati Bell, Inc. 489,488
1,000 Intelect Communications, Inc.* 5,500
8,500 MCN Energy Group, Inc. 211,438
20,791 Qwest Communications
International, Inc.* 725,085
7,300 Seagull Energy Corp. 120,905
8,500 Southern New England
Telecommunications 556,750
-----------
3,791,935
-----------
TOTAL COMMON STOCK 70,254,995
-----------
(cost $60,425,282)
</TABLE>
8 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 11
THE ONE(R) GROUP(SM) INVESTMENT TRUST
GROWTH OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------
PRINCIPAL SECURITY VALUE
- -------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (2.2%)
$1,567,000 Prudential Securities, Inc.
6.10%, dated 06/30/98, due
07/01/98, Collateralized by
$1,613,000 U.S. Treasury
Bill, 4.95%, due 09/03/98,
market value $1,598,657 $ 1,567,000
-----------
(cost $1,567,000)
SHORT-TERM SECURITIES HELD AS COLLATERAL
(11.2%)
8,012,368 Lehman Brothers, Repurchase
Agreement 6.47%, dated
06/30/98, due 07/01/98,
collateralized by $8,414,608
Media One Group Commercial
Paper, 10/05/98, market value
$8,414,608 8,012,368
-----------
TOTAL INVESTMENTS $79,834,363
===========
(cost $70,004,650)
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
Portfolio holding percentages represent market value as a percentage of net
assets.
Cost for federal income tax purposes: $62,280,935.
(a) A portion of this security was loaned as of June 30, 1998.
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
LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
COMMON STOCK (97.4)%
BUSINESS EQUIPMENT & SERVICES 1.8%
6,000 America Online, Inc. * $ 636,000
14,100 Automatic Data Processing 1,027,538
4,300 Omnicom Group 214,462
16,900 U.S.A. Waste Services, Inc.*
(a) 834,438
------------
2,712,438
------------
CAPITAL GOODS (6.9%)
97,000 General Electric Co. 8,827,000
29,300 Tyco International Ltd 1,845,900
------------
10,672,900
------------
CONSUMER NON-DURABLE (14.9%)
11,000 Anheuser-Busch Cos., Inc 519,063
2,800 Avon Products, Inc. 217,000
7,700 BestFoods 447,081
14,100 Campbell Soup Co. 749,063
71,100 Coca Cola Co. 6,079,050
8,400 Colgate-Palmolive Co. 739,200
10,700 ConAgra, Inc. 339,056
29,874 Gillette Company 1,693,482
4,600 H.J. Heinz Co. 258,175
14,800 Kellogg Co. 555,925
12,100 Newell Co. 602,731
41,100 PepsiCo, Inc. 1,692,806
70,600 Philip Morris Cos. 2,779,875
37,300 Procter & Gamble Co. 3,396,631
5,200 Quaker Oats Co. 285,675
2,100 Ralston-Purina Co. 245,306
13,400 Sara Lee Corp. 749,563
22,600 Unilever N.V. 1,783,988
90 Vlasic Foods International* 1,811
------------
23,135,481
------------
CONSUMER SERVICES (2.5%)
33,700 Cendant Corp.* 703,487
10,200 Comcast Corp. Class A 414,056
8,200 Gannett Co., Inc. 582,712
12,000 Hilton Hotels Corp. 342,000
3,900 Mattel, Inc. 165,019
12,500 News Corp Ltd. ADR (a) 401,563
23,400 Tele-Communications, Inc.
Class A* 899,437
4,200 Tribune Co. 289,013
------------
3,797,287
------------
ENERGY (0.9%)
6,400 Halliburton Co. 285,200
16,300 Schlumberger Ltd. (a) 1,113,494
------------
1,398,694
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES (10.9%)
14,400 American Express Co. $ 1,641,600
25,375 American International Group 3,704,750
19,950 Charles Schwab Corp. (The) 648,374
30,400 Chase Manhattan Corp. 2,295,200
32,900 Fannie Mae 1,998,675
7,300 First Virginia Banks 373,213
7,100 Franklin Resources 383,400
14,100 Household International 701,475
6,750 Marsh & McLennan 407,953
14,850 MBNA Corp. 490,050
3,500 MGIC Investment 199,719
24,700 Morgan Stanley Dean Witter &
Co. 2,256,961
4,200 State Street Corp. 291,900
1,400 T. Rowe Price Associates, Inc. 52,588
22,866 U.S. Bancorp 983,238
10,600 Washington Mutual, Inc. 460,438
------------
16,889,534
------------
HEALTHCARE (19.0%)
33,200 Abbott Laboratories 1,357,050
38,000 American Home Products 1,966,500
6,400 Baxter International, Inc. 344,400
6,000 Boston Scientific* 429,750
41,000 Bristol-Meyers Squibb 4,712,437
3,800 Cardinal Health 356,250
3,500 Guidant Corp. 249,594
9,800 HBO & Co. 345,450
8,200 HealthSouth Corp.* 218,838
35,200 Johnson & Johnson Co. 2,596,000
31,800 Lilly Eli & Co. 2,100,788
18,000 Medtronic, Inc. 1,147,500
31,500 Merck & Co., Inc. 4,213,124
37,400 Pfizer, Inc. 4,064,912
27,700 Schering-Plough Corp. 2,538,013
40,900 Warner-Lambert Co. 2,837,437
------------
29,478,043
------------
MULTIPLE INDUSTRY (0.8%)
4,400 Broadcom Corp. Class A* 323,950
10,500 Minnesota Mining &
Manufacturing Co. 862,969
------------
1,186,919
------------
RAW MATERIALS (2.3%)
34,400 E.I. Du Pont De Nemours & Co. 2,567,100
18,300 Monsanto Co. 1,022,513
------------
3,589,613
------------
RETAIL (8.6%)
1,800 Consolidated Stores Corp.* 65,250
9,900 Costco Cos., Inc.* 624,319
21,300 CVS Corp. 829,369
23,400 Dayton Hudson Corp. 1,134,900
</TABLE>
10 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 13
THE ONE(R) GROUP(SM) INVESTMENT TRUST
LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
RETAIL (CONTINUED)
10,200 Gap, Inc. $ 628,575
25,550 Home Depot, Inc. 2,122,247
67,200 Just For Feet, Inc.* 1,915,200
8,900 Kroger Co.* 381,588
7,200 TJX Cos. 173,700
25,200 Walgreen Co. 1,041,074
73,200 Wal-Mart Stores, Inc. 4,446,900
------------
13,363,122
------------
SHELTER (0.5%)
16,900 Kimberly Clark Corp. 775,288
------------
TECHNOLOGY (23.2%)
10,500 3COM Corp.* 322,219
33,000 Applied Materials, Inc.* 973,500
41,250 Cisco Systems, Inc.* 3,797,578
31,700 Compaq Computer Corp. 899,488
15,050 Computer Associates
International, Inc. 836,216
100 Compuware Corp.* 5,113
48,400 Dell Computer Corp.* 4,492,124
17,300 EMC Corp.* (a) 775,256
3,600 Gateway 2000, Inc.* 182,250
22,300 Hewlett-Packard Co. 1,335,213
48,800 Intel Corp. 3,617,299
36,650 Lucent Technologies 3,048,822
97,400 Microsoft Corp.* 10,555,725
15,900 Northern Telecom Ltd. 902,324
21,100 Oracle Corp.* 518,269
22,000 Sun Microsystems, Inc.* 955,625
10,900 Tellabs, Inc.* 780,713
8,500 Texas Instruments, Inc. 495,656
14,000 Xerox Corp. 1,422,750
------------
35,916,140
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
UTILITIES (5.1%)
16,200 Airtouch Communications* $ 946,688
31,800 Ameritech Corp. 1,427,025
41,800 Bell Atlantic Co. 1,907,125
26,100 GTE Corp. 1,451,812
55,100 SBC Communications, Inc. 2,204,000
------------
7,936,650
------------
TOTAL COMMON STOCK 150,852,109
------------
(cost $117,126,447)
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL
- ---------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (2.5%)
$ 3,937,000 Prudential Securities, Inc.
6.10%, dated 6/30/98, due
07/01/98, Collateralized by
$4,052,000 U.S. Treasury
Bill, 4.95%, due 09/03/98,
market value $4,015,970 3,937,000
------------
(cost $3,937,000)
SHORT-TERM SECURITIES HELD AS COLLATERAL
(1.9%)
2,929,259 Lehman Brothers, Repurchase
Agreement 6.47%, dated
06/30/98, due 07/01/98,
Collateralized by $3,076,312
Media One Group Commercial
Paper, 10/05/98, market value
$3,076,312 2,929,259
------------
TOTAL INVESTMENTS $157,718,368
============
(cost $123,992,706)
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
Portfolio holding percentages represent market value as a percentage of net
assets.
Cost for federal income tax purposes: $121,130,530.
The abbreviation on the above statement stands for the following:
<TABLE>
<S> <C>
ADR American Depository Receipt
</TABLE>
(a) A portion of this security was loaned as of June 30, 1998.
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
EQUITY INDEX FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
COMMON STOCK (99.5%)
BUSINESS EQUIPMENT/SERVICES (1.9%)
100 Automatic Data Processing, Inc. $ 7,287
100 Browning-Ferris Industries,
Inc. 3,474
100 Ceridian Corp.* 5,874
100 Cognizant Corp. 6,300
100 Computer Sciences Corp.* 6,400
100 Deluxe Corp. 3,580
100 Dun & Bradstreet Corp. 3,600
100 Ecolab, Inc. 3,100
100 Equifax, Inc 3,630
200 First Data Corp. 6,663
100 H & R Block, Inc. 4,212
100 Laidlaw, Inc. 1,218
100 Omnicom Group, Inc. 4,988
100 Pitney Bowes, Inc. 4,812
100 R. R. Donnelley & Sons Co. 4,574
100 Service Corp. International 4,287
200 Waste Management, Inc. 7,000
-----------
80,999
-----------
CAPITAL GOODS (6.5%)
100 Aeroquip-Vickers, Inc. 5,837
100 Black & Decker Corp. 6,100
100 Case Corp. 4,824
100 Caterpillar, Inc. 5,287
100 Cincinnati Milacron, Inc. 2,430
100 Cooper Industries, Inc. 5,493
100 Crane Co. 4,855
100 Cummins Engine Co., Inc. 5,124
100 Deere & Co. 5,287
100 Dover Corp. 3,424
200 Emerson Electric Co. 12,074
100 Fluor Corp. 5,100
100 Foster Wheeler Corp. 2,145
1,500 General Electric Co. 136,500
200 Grainger (W. W.), Inc. 9,962
100 Harnischfeger Industries, Inc. 2,831
100 Honeywell, Inc. 8,356
100 Illinois Tool Works, Inc. 6,668
100 Ingersoll-Rand Co. 4,405
100 Nacco Industries, Inc. 12,925
100 Navistar International Corp.* 2,887
100 PPG Industries, Inc. 6,955
100 Sherwin-Williams Co. 3,312
100 Thermo Electron Corp.* 3,418
300 Tyco International Ltd. 18,900
-----------
285,099
-----------
CONSUMER DURABLE (2.7%)
100 Autozone, Inc.* 3,193
100 Briggs & Stratton Corp. 3,744
300 Chrysler Corp. 16,913
100 Cooper Tire & Rubber Co. 2,063
100 Dana Corp. 5,350
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
CONSUMER DURABLE (CONTINUED)
100 Eaton Corp. $ 7,775
100 Echlin, Inc. 4,905
600 Ford Motor Co. 35,400
300 General Motors Corp. 20,043
100 Genuine Parts Co. 3,455
100 Goodyear Tire & Rubber Co. 6,444
100 ITT Industries, Inc. 3,737
100 Maytag Corp. 4,938
-----------
117,960
-----------
CONSUMER NON DURABLE (11.2%)
100 Alberto-Culver Co. Class B
Preferred Stock 2,900
100 American Greetings Corp. Class
A 5,093
200 Anheuser-Busch Cos., Inc. 9,437
200 Archer Daniels Midland Co. 3,875
100 Avon Products, Inc. 7,750
100 Ball Corp. 4,018
100 Bemis Co., Inc. 4,087
100 BestFoods 5,806
100 Brown-Forman Corp. Class B 6,424
200 Campbell Soup Co. 10,625
100 Clorox Co. 9,537
1,100 Coca-Cola Co. 94,050
100 Colgate-Palmolive Co. 8,800
200 Conagra, Inc. 6,337
100 Coors Adolph Co. Class B 3,400
100 Crown Cork & Seal Co., Inc.* 4,750
100 Eastman Kodak Co. 7,305
100 Fort James Corp. 4,450
100 Fortune Brands, Inc. 3,843
100 Fruit of the Loom, Inc. Class
A* 3,318
100 General Mills, Inc. 6,837
500 Gillette Co. 28,344
100 Heinz (H. J.) Co. 5,612
100 Hershey Foods Corp. 6,900
100 Jostens, Inc. 2,387
200 Kellogg Co. 7,512
100 Newell Co. 4,981
100 Nike, Inc. Class B 4,869
700 Pepsico, Inc. 28,831
1,100 Philip Morris Cos., Inc. 43,313
100 Pioneer Hi-Bred International 4,138
100 Polaroid Corp. 3,556
600 Procter & Gamble Co. 54,638
100 Quaker Oats Co. 5,494
100 Ralston -- Ralston Purina Group 11,681
100 Reebok International Ltd.* 2,769
100 Rubbermaid, Inc. 3,319
100 Russell Corp. 3,019
200 Sara Lee Corp. 11,188
100 Seagram Co. Ltd. 4,094
100 Sysco Corp. 2,563
100 Tupperware Corp. 2,813
300 Unilever N. V. 23,681
</TABLE>
12 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 15
THE ONE(R) GROUP(SM) INVESTMENT TRUST
EQUITY INDEX FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
CONSUMER NON DURABLE (CONTINUED)
100 UST, Inc. $ 2,700
100 Wm. Wrigley Jr. Co. 9,800
-----------
490,844
-----------
CONSUMER SERVICES (3.5%)
100 Brunswick Corp. 2,475
300 CBS Corp. 9,525
400 Cendant Corp.* 8,350
100 Clear Channel Communications,
Inc.* 10,913
100 Comcast Corp. Class A 4,059
100 Dow Jones & Co., Inc. 5,575
100 Gannett Co., Inc. 7,106
100 Hasbro, Inc. 3,931
100 Hilton Hotels, Corp. 2,850
100 King World Productions, Inc.* 2,550
100 Marriott International, Inc.
Class A 3,238
100 Mattel, Inc. 4,231
300 Mediaone Group, Inc.* 13,181
100 Mirage Resorts, Inc.* 2,131
200 Tele-Communications, Inc. Class
A* 7,688
300 Time Warner, Inc. 25,631
100 Viacom, Inc. Class B* 5,825
300 Walt Disney Co. 31,519
-----------
150,778
-----------
ENERGY (6.9%)
100 Amerada Hess Corp. 5,431
400 Amoco Corp. 16,650
100 Anadarko Petroleum Corp. 6,719
100 Apache Corp. 3,150
100 Ashland, Inc. 5,163
100 Atlantic Richfield Co. 7,813
100 Baker Hughes, Inc. 3,456
100 Burlington Resources, Inc. 4,306
300 Chevron Corp. (a) 24,919
100 Dresser Industries, Inc. 4,406
1,100 Exxon Corp. 78,444
100 Halliburton Co. 4,456
300 Mobil Corp. 22,988
100 Occidental Petroleum Corp. 2,700
100 ORYX Energy Co.* 2,213
100 Phillips Petroleum Co. 4,819
1,000 Royal Dutch Petroleum Co. 54,813
200 Schlumberger Ltd. (a) 13,663
100 Sempra Energy* 2,775
100 Tenneco, Inc. 3,806
200 Texaco, Inc. 11,938
100 Union Pacific Resources Group,
Inc. 1,756
100 Unocal Corp. 3,575
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
ENERGY (CONTINUED)
100 USX-Marathon Group $ 3,431
100 Western Atlas, Inc.* 8,488
-----------
301,878
-----------
FINANCIAL SERVICES (18.1%)
100 Ahmanson (H. F.) & Co. 7,100
200 Allstate Corp. 18,313
200 American Express Co. 22,800
100 American General Corp. 7,119
300 American International Group,
Inc. 43,800
100 Aon Corp. 7,025
100 Associates First Capital Corp. 7,688
300 Banc One Corp. 16,744
200 Bank of New York Co., Inc. 12,138
300 BankAmerica Corp. 25,931
200 BankBoston Corp. 11,125
100 Bankers Trust Corp. 11,606
100 BB&T Corp. 6,763
100 Beneficial Corp. 15,319
400 Chase Manhattan Corp. 30,200
100 Chubb Corp. 8,038
100 Cigna Corp. 6,900
100 Cincinnati Financial Corp. 3,838
200 Citicorp 29,850
100 Comerica, Inc. 6,625
100 Conseco, Inc. 4,675
100 Countrywide Credit Industries,
Inc. 5,075
500 Fannie Mae 30,375
100 Fifth Third Bancorp 6,300
100 First Chicago NBD Corp. 8,863
400 First Union Corp. 23,300
100 Fleet Financial Group, Inc. 8,350
100 Franklin Resources, Inc. 5,400
300 Freddie Mac 14,119
100 General Re Corp. 25,350
100 Golden West Financial Corp. 10,631
100 Green Tree Financial Corp. 4,281
100 Hartford Financial Services
Group, Inc. 11,438
100 Household International, Inc. 4,975
100 Huntington Bancshares, Inc. 3,350
100 J. P. Morgan & Co., Inc. 11,713
200 KeyCorp 7,125
100 Lincoln National Corp. 9,138
150 Marsh & McLennan Cos., Inc. 9,066
200 MBNA Corp. 6,600
100 Mellon Bank Corp. 6,963
100 Merrill Lynch & Co., Inc. 9,225
300 Morgan Stanley Dean Witter &
Co. 27,413
100 National City Corp. 7,100
400 NationsBank Corp. 30,600
300 Norwest Corp. 11,213
100 PNC Bank Corp. 5,381
100 Progressive Corp. 14,100
100 Providian Financial Corp. 7,856
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 13
<PAGE> 16
THE ONE(R) GROUP(SM) INVESTMENT TRUST
EQUITY INDEX FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES (CONTINUED)
100 Safeco Corp. $ 4,538
100 Schwab, Charles Corp. 3,250
100 SLM Holding Corp. 4,900
100 St Paul Cos., Inc. 4,206
100 State Street Corp. 6,950
100 Summit Bancorp 4,750
100 SunAmerica, Inc. 5,744
100 SunTrust Banks, Inc. 8,131
150 Synovus Financial Corp. 3,563
100 Torchmark Corp. 4,575
100 Transamerica Corp. 11,513
500 Travelers Group, Inc. 30,313
300 U.S. Bancorp 12,900
100 UNUM Corp. 5,550
100 Wachovia Corp. 8,450
150 Washington Mutual, Inc. 6,516
100 Wells Fargo & Co. 36,900
-----------
791,646
-----------
HEALTH CARE (11.7%)
700 Abbott Labs 28,613
100 Aetna, Inc. 7,613
100 Allergan, Inc. 4,638
100 Alza Corp.* 4,325
600 American Home Products Corp. 31,050
100 Amgen, Inc. 6,538
100 Bard (C. R.), Inc. 3,806
100 Bausch & Lomb, Inc. 5,013
100 Baxter International, Inc. 5,381
100 Biomet, Inc. 3,306
100 Boston Scientific Corp.* 7,163
400 Bristol-Myers Squibb Co. 45,975
100 Cardinal Health, Inc. 9,375
300 Columbia/HCA Healthcare Corp. 8,738
100 Dickinson Becton & Co. 7,763
500 Eli Lilly & Co. 33,031
100 Guidant Corp. 7,131
200 HBO & Co. 7,050
200 HealthSouth Corp.* 5,338
100 Humana, Inc.* 3,119
600 Johnson & Johnson 44,250
100 Mallinckrodt, Inc. 2,969
100 Manor Care, Inc. 3,844
200 Medtronic, Inc. 12,750
500 Merck & Co., Inc. 66,875
100 Millipore Corp. 2,725
600 Pfizer, Inc. 65,213
200 Pharmacia & Upjohn, Inc. 9,225
300 Schering-Plough Corp. 27,488
100 St. Jude Medical, Inc.* 3,681
100 Tenet Healthcare Corp.* 3,125
100 United Healthcare Corp. 6,350
400 Warner-Lambert Co. 27,750
-----------
511,211
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
MULTI-INDUSTRY (1.2%)
200 AlliedSignal, Inc. $ 8,875
100 Corning, Inc. 3,475
100 FMC Corp.* 6,819
100 Loews Corp. 8,713
200 Minnesota Mining &
Manufacturing Co. 16,438
100 Textron, Inc. 7,169
-----------
51,489
-----------
RAW MATERIALS (3.1%)
200 Air Products & Chemicals, Inc. 8,000
100 Alcan Aluminium Ltd. 2,763
100 Allegheny Teledyne, Inc. 2,288
100 Aluminum Co. of America 6,594
100 Armco, Inc.* 638
100 Asarco, Inc. 2,225
100 Avery Dennison, Corp. 5,375
100 Barrick Gold Corp. 1,919
300 Battle Mountain Gold Co.* 1,781
100 Bethlehem Steel Corp.* 1,244
100 Cyprus Amax Minerals Co. 1,325
100 Dow Chemical Co. 9,669
500 E. I. Du Pont De Nemours & Co. 37,313
100 Eastman Chemical Co. 6,225
100 Engelhard Corp. 2,025
100 Freeport-McMoRan Copper & Gold,
Inc. 1,519
100 Inco Ltd. 1,363
300 Monsanto Co. 16,763
100 Morton International, Inc. 2,500
100 Newmont Mining Corp. 2,363
100 Placer Dome, Inc.* 1,175
100 Praxair, Inc. 4,681
100 Rohm & Haas Co. 10,394
100 W. R. Grace & Co.* 1,706
100 Worthington Industries, Inc. 1,506
-----------
133,354
-----------
RETAIL (6.0%)
1 Abercrombie & Fitch Co. Class
A* 44
100 Albertsons, Inc. 5,181
100 American Stores Co. 2,419
100 Circuit City Stores -- Circuit
City Group* 4,688
100 Consolidated Stores Corp.* 3,625
100 Costco Cos., Inc.* 6,306
200 CVS Corp. 7,788
200 Darden Restaurants, Inc. 3,175
200 Dayton Hudson Corp. 9,700
100 Dillards, Inc. Class A* 4,144
100 Federated Department Stores,
Inc.* 5,381
200 Gap, Inc. 12,325
100 Great Atlantic & Pacific Tea
Co., Inc. 3,306
300 Home Depot, Inc. 24,919
</TABLE>
14 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 17
THE ONE(R) GROUP(SM) INVESTMENT TRUST
EQUITY INDEX FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
RETAIL (CONTINUED)
100 J. C. Penney Co., Inc. $ 7,231
200 Kmart Corp. (a) 3,850
100 Kroger Co.* 4,288
100 Limited, Inc. 3,313
100 Longs Drug Stores Corp. 2,888
200 Lowes Cos., Inc. 8,113
100 May Department Stores Co. 6,550
300 McDonalds Corp. Class A 20,700
100 Pep Boys -- Manny, Moe & Jack 1,894
100 Rite Aid Corp. 3,756
200 Sears, Roebuck & Co. 12,213
200 TJX Cos., Inc. 4,825
100 Toys 'R' Us, Inc.* 2,356
300 Tricon Global Restaurants,
Inc.* 9,506
200 Walgreen Co. 8,263
1,000 Wal-Mart Stores, Inc. 60,750
100 Wendy's International, Inc. 2,350
100 Winn-Dixie Stores, Inc. 5,119
-----------
260,966
-----------
SHELTER (1.3%)
100 Armstrong World Industries,
Inc. 6,738
100 Boise Cascade Corp. 3,275
100 Centex Corp. 3,775
100 Champion International Corp. 4,919
100 Fleetwood Enterprises, Inc. 4,000
100 International Paper Co. 4,300
200 Kimberly-Clark Corp. 9,175
100 Louisiana-Pacific Corp. 1,825
100 Masco Corp. 6,050
100 Owens-Illinois, Inc.* 4,475
100 Stone Container Corp.* 1,563
100 Westvaco Corp. 2,825
100 Weyerhaeuser Co. 4,619
-----------
57,539
-----------
TECHNOLOGY (14.6%)
100 3Com Corp.* 3,069
100 Adobe Systems, Inc. 4,244
100 Advanced Micro Devices, Inc.* 1,706
100 AMP, Inc. 3,438
100 Andrew Corp.* 1,806
100 Apple Computer, Inc.* 2,869
100 Applied Materials, Inc.* 2,950
100 Ascend Communications, Inc. 4,956
100 Autodesk, Inc. 3,863
100 Bay Networks, Inc.* 3,225
500 Boeing Co. 22,281
100 Cabletron Systems, Inc.* 1,344
500 Cisco Systems, Inc.* 46,031
795 Compaq Computer Corp. 22,544
200 Computer Associates
International, Inc. 11,113
200 Data General Corp.* 2,988
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
300 Dell Computer Corp.* $ 27,844
100 DSC Communications Corp.* 3,000
100 EG & G, Inc. 3,000
200 EMC Corp.* (a) 8,963
100 Gateway 2000, Inc.* 5,063
100 General Instrument Corp.* 2,719
500 Hewlett-Packard Co. 29,938
800 Intel Corp. 59,300
400 International Business Machines
Corp. 45,925
100 KLA-Tencor Corp.* 2,769
100 Lockheed Martin Corp. 10,588
100 LSI Logic Corp.* 2,306
600 Lucent Technologies, Inc. 49,913
100 Micron Technology, Inc.* 2,481
1,100 Microsoft Corp.* 119,213
300 Motorola, Inc. 15,769
100 National Semiconductor Corp. 1,319
200 Northern Telecom Ltd. 11,350
100 Northrop Grumman Corp. 10,313
200 Novell, Inc.* 2,550
400 Oracle Corp.* 9,825
100 Parametric Technology Co.* 2,713
100 Raychem Corp. 2,956
100 Raytheon Co. 5,913
100 Rockwell International Corp. 4,806
100 Scientific-Atlanta, Inc. 2,538
100 Seagate Technology, Inc.* 2,381
200 Silicon Graphics, Inc.* 2,425
200 Sun Microsystems, Inc.* 8,688
100 Tektronix, Inc. 3,538
100 Tellabs, Inc.* 7,163
200 Texas Instruments, Inc. 11,663
100 Unisys Corp.* 2,825
100 United Technologies Corp. 9,250
100 Xerox Corp. 10,163
-----------
639,597
-----------
TRANSPORTATION (1.5%)
200 AMR Corp.* 16,650
100 Burlington Northern Santa Fe
Corp. 9,819
100 CSX Corp. 4,550
100 Delta Air Lines, Inc. 12,925
100 FDX Corp.* 6,275
200 Norfolk Southern Corp. 5,963
100 Southwest Airlines Co. 2,963
100 Union Pacific Corp. 4,413
-----------
63,558
-----------
UTILITIES (9.3%)
200 AirTouch Communications, Inc. 11,687
100 Alltel Corp. 4,650
100 Ameren Corp. 3,975
100 American Electric Power, Inc. 4,537
</TABLE>
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 15
<PAGE> 18
THE ONE(R) GROUP(SM) INVESTMENT TRUST
EQUITY INDEX FUND
STATEMENT OF INVESTMENTS -- JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
UTILITIES (CONTINUED)
500 Ameritech Corp. $ 22,438
700 AT&T Corp. 39,988
100 Baltimore Gas & Electric Co. 3,105
600 Bell Atlantic Corp. 27,375
400 BellSouth Corp. 26,850
100 Carolina Power & Light Co. 4,337
100 Central & South West Corp. 2,687
100 Cinergy Corp. 3,500
100 Coastal Corp. 6,981
150 Columbia Energy Group 8,343
100 Consolidated Edison, Inc. 4,605
100 Consolidated Natural Gas Co. 5,887
100 Dominion Resources, Inc. 4,074
100 DTE Energy Co. 4,037
100 Duke Energy Corp. 5,924
100 Eastern Enterprises 4,287
100 Edison International 2,955
100 Enron Corp. 5,405
100 Entergy Corp. 2,874
100 FirstEnergy Corp. 3,075
100 FPL Group, Inc. 6,300
100 Frontier Corp. 3,150
100 GPU, Inc. 3,780
400 GTE Corp. 22,250
100 Houston Industries, Inc. 3,087
300 MCI Communications Corp. 17,438
100 Nextel Communications* 2,488
100 Niagara Mohawk Power Corp.* 1,494
100 Northern States Power Co. 2,863
100 PacifiCorp 2,263
100 PECO Energy Co. 2,919
100 Peoples Energy Corp 3,863
200 PG&E Corp. 6,313
100 PP&L Resources, Inc. 2,269
100 Public Service Enterprise
Group, Inc. 3,444
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
SHARES SECURITY VALUE
- ---------------------------------------------------------
<C> <S> <C>
UTILITIES (CONTINUED)
900 SBC Communications, Inc. $ 36,000
100 Sonat, Inc. 3,863
300 Southern Co. 8,306
200 Sprint Corp. 14,100
100 Texas Utilities Co. 4,163
200 U. S. West, Inc. 9,400
100 Unicom Corp. 3,506
200 Williams Cos., Inc. 6,750
500 Worldcom, Inc.* (a) 24,219
-----------
407,804
-----------
TOTAL COMMON STOCK 4,344,722
-----------
(cost $4,300,167)
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
PRINCIPAL
- ---------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (11.9%)
$ 521,000 Prudential Securities, Inc.
6.10% dated 06/30/98, due
07/01/98, Collateralized by
$537,000 U.S. Treasury Bill,
4.95%, due 09/03/98, market
value $532,225 521,000
-----------
(cost $521,000)
SHORT-TERM SECURITIES HELD AS COLLATERAL
(1.7%)
72,576 Lehman Brothers, Repurchase
Agreement 6.47%, dated
06/30/98, due 07/01/98,
Collateralized by $76,223
Media One Group Commercial
Paper, 10/05/98, market value
$76,223 72,576
TOTAL INVESTMENTS $ 4,938,298
===========
(cost $4,893,743)
</TABLE>
- --------------------------------------------------------------------------------
* Denotes a non-income producing security.
Portfolio holding percentages represent market value as a percentage of net
assets.
Cost for federal income tax purposes: $4,821,170.
(a) A portion of this security was loaned as of June 30, 1998.
See accompanying notes to financial statements.
16 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 19
THE ONE(R) GROUP(SM)INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT ASSET GROWTH LARGE COMPANY EQUITY
BOND ALLOCATION OPPORTUNITIES GROWTH INDEX
----------- ----------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at
value (cost $29,192,680,
$62,974,377, $60,425,282,
$117,126,447 and $4,300,167
respectively) $30,020,333 $69,082,618 $70,254,995 $ 150,852,109 $4,344,722
Repurchase agreements, at cost 2,391,734 6,436,499 9,579,368 6,866,259 593,576
----------- ----------- ----------- ------------- ----------
Total investments 32,412,067 75,519,117 79,834,363 157,718,368 4,938,298
Cash 660 197 15 312 417,033
Receivable for investment
securities sold 2,238,973 5,352,000 1,414,000 3,568,000 2,862
Interest and dividends receivable 243,676 461,324 26,572 145,213 4,198
Receivable for fund shares sold 94,075 405,103 151,724 362,029 103,891
Receivable from investment advisor -- -- -- -- 11,881
Other assets -- 300 -- 587 --
Deferred organization expenses 1,555 3,375 4,448 3,373 1,609
----------- ----------- ----------- ------------- ----------
Total assets 34,991,006 81,741,416 81,431,122 161,797,832 5,479,772
----------- ----------- ----------- ------------- ----------
LIABILITIES
Payable for futures variation
margin -- 5,750 -- -- --
Payable for investments purchased 4,370,574 7,269,900 1,567,000 3,937,000 1,024,789
Payable for return of collateral
received for securities on loan 516,734 669,499 8,012,368 2,929,259 72,576
Management fee payable 10,400 36,312 36,649 77,671 --
Administration fee payable 5,511 12,925 13,133 27,538 426
Other accrued expenses 2,017 3,687 11,546 -- 13,929
----------- ----------- ----------- ------------- ----------
Total liabilities 4,905,236 7,998,073 9,640,696 6,971,468 1,111,720
----------- ----------- ----------- ------------- ----------
NET ASSETS $30,085,770 $73,743,343 $71,790,426 $ 154,826,414 $4,368,052
=========== =========== =========== ============= ==========
REPRESENTED BY:
Capital $29,255,948 $66,492,645 $59,455,516 $ 112,196,744 $4,324,170
Net unrealized appreciation on
investments and financial
futures 827,653 6,153,504 9,829,713 33,725,662 44,555
Accumulated undistributed realized
gain (loss) on investments and
financial futures (135) 1,096,190 2,565,212 8,901,607 (778)
Accumulated undistributed net
investment income(loss) 2,304 1,004 (60,015) 2,401 105
----------- ----------- ----------- ------------- ----------
NET ASSETS $30,085,770 $73,743,343 $71,790,426 $ 154,826,414 $4,368,052
=========== =========== =========== ============= ==========
Shares of beneficial interest
outstanding, no par value
(unlimited number of shares
authorized) 2,837,548 5,090,619 4,351,564 7,371,295 433,659
=========== =========== =========== ============= ==========
NET ASSET VALUE, redemption and
offering price per share $ 10.60 $ 14.49 $ 16.50 $ 21.00 $ 10.07
=========== =========== =========== ============= ==========
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 17
<PAGE> 20
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT ASSET GROWTH LARGE COMPANY EQUITY
BOND ALLOCATION OPPORTUNITIES GROWTH INDEX(A)
---------- ---------- ------------- ------------- --------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividend income $ -- $ 179,294 $ 161,795 $ 595,231 $ 9,155
Interest income 803,571 844,715 80,274 258,086 185
Income from securities lending 122 184 579 103 2
-------- ---------- ---------- ----------- --------
Total income 803,693 1,024,193 242,648 853,420 9,342
-------- ---------- ---------- ----------- --------
EXPENSES:
Investment advisory fees 56,265 190,939 197,835 400,396 1,739
Administration fees 29,721 64,305 72,404 146,121 811
Professional fees 3,173 5,868 7,151 12,412 2,424
Custodian fees 3,860 12,801 17,792 10,170 6,796
Insurance expense 1,060 1,549 2,083 3,626 214
Trustee fees 685 1,290 1,543 3,097 249
Other 3,620 3,614 3,855 5,314 4,574
-------- ---------- ---------- ----------- --------
Total expenses before waivers 98,384 280,366 302,663 581,136 16,807
Less waivers (4,609) (7,597) -- -- (13,620)
-------- ---------- ---------- ----------- --------
Net expenses 93,775 272,769 302,663 581,136 3,187
-------- ---------- ---------- ----------- --------
NET INVESTMENT INCOME (LOSS) $709,918 $ 751,424 $ (60,015) $ 272,284 $ 6,155
-------- ---------- ---------- ----------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments $ (135) $ 801,814 $2,891,920 $ 8,916,825 $ (778)
Net realized gain on financial futures -- 269,283 -- -- --
Net change in unrealized appreciation on
investments and financial futures 260,152 3,731,139 5,848,159 15,581,809 44,555
-------- ---------- ---------- ----------- --------
NET REALIZED AND UNREALIZED GAIN 260,017 4,802,236 8,740,079 24,498,634 43,777
-------- ---------- ---------- ----------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $969,935 $5,553,660 $8,680,064 $24,770,918 $ 49,932
======== ========== ========== =========== ========
</TABLE>
- ---------------------------------------------
(a) For the period May 1, 1998, date of commencement of operations, through June
30, 1998.
See accompanying notes to financial statements.
18 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 21
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND ASSET ALLOCATION
--------------------------------- ---------------------------------
FOR THE SIX MONTHS YEAR ENDED FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------------------------- -------------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 709,918 $ 1,061,995 $ 751,424 $ 873,061
Net realized gain (loss) on
investments and financial futures (135) 45,096 1,071,097 3,089,370
Net change in unrealized appreciation
of investments 260,152 596,960 3,731,139 1,416,110
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 969,935 1,704,051 5,553,660 5,378,541
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (707,614) (1,061,995) (752,290) (871,191)
In excess of net investment income -- (5,056) -- --
From net realized gain from investment
transactions -- (41,992) -- (3,031,880)
----------- ----------- ----------- -----------
Decrease in net assets from
distributions to shareholders (707,614) (1,109,043) (752,290) (3,903,071)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 7,721,440 6,514,599 27,651,907 21,414,090
Net asset value of shares issued to
shareholders from reinvestment of
distributions 707,614 1,109,043 752,290 3,903,071
Cost of shares redeemed (970,177) (475,970) (907,900) (230,267)
----------- ----------- ----------- -----------
Increase in net assets from
capital share transactions 7,458,877 7,147,672 27,496,297 25,086,894
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS 7,721,198 7,742,680 32,297,667 26,562,364
NET ASSETS-BEGINNING OF PERIOD 22,364,572 14,621,892 41,445,676 14,883,312
----------- ----------- ----------- -----------
NET ASSETS-END OF PERIOD $30,085,770 $22,364,572 $73,743,343 $41,445,676
=========== =========== =========== ===========
Undistributed net realized gain (loss)
on investments and financial futures $ (135) $ -- $ 1,096,190 $ 25,093
=========== =========== =========== ===========
Undistributed net investment income $ 2,304 $ -- $ 1,004 $ 1,870
=========== =========== =========== ===========
SHARE ACTIVITY:
Shares sold 728,389 631,011 1,963,136 1,615,750
Reinvestment of distributions 67,118 108,358 52,540 296,400
Shares redeemed (91,611) (46,749) (66,601) (18,108)
----------- ----------- ----------- -----------
Net increase in number of shares 703,896 692,620 1,949,075 1,894,042
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 19
<PAGE> 22
THE ONE(R) GROUP(SM) INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES LARGE COMPANY GROWTH
--------------------------------- ---------------------------------
FOR THE SIX MONTHS YEAR ENDED FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------------------------- -------------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (60,015) $ (87,568) $ 272,284 $ 485,771
Net realized gain (loss) on investments and
financial futures 2,891,920 4,951,110 8,916,825 3,943,220
Net change in unrealized appreciation of
investments 5,848,159 3,493,572 15,581,809 13,307,669
----------- ----------- ------------ -----------
Net increase in net assets from
operations 8,680,064 8,357,114 24,770,918 17,736,660
----------- ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- -- (269,883) (485,771)
In excess of net investment income -- -- -- (11,566)
From net realized gain from investment
transactions -- (4,757,643) -- (3,931,556)
In excess of realized gain on investment
transactions -- (17,827) -- (1,846)
Tax return of capital distribution -- (61,358) -- (6,585)
----------- ----------- ------------ -----------
Decrease in net assets from
distributions to shareholders -- (4,836,828) (269,883) (4,437,324)
----------- ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 12,684,448 20,249,383 30,931,723 39,242,534
Net asset value of shares issued to
shareholders from reinvestment of
distributions -- 4,836,828 269,883 4,437,323
Cost of shares redeemed (280,786) (238,598) (503,868) (244,898)
----------- ----------- ------------ -----------
Increase in net assets from capital
share transactions 12,403,662 24,847,613 30,697,738 43,434,959
----------- ----------- ------------ -----------
NET INCREASE IN NET ASSETS 21,083,726 28,367,899 55,198,773 56,734,295
NET ASSETS-BEGINNING OF PERIOD 50,706,700 22,338,801 99,627,641 42,893,346
----------- ----------- ------------ -----------
NET ASSETS-END OF PERIOD $71,790,426 $50,706,700 $154,826,414 $99,627,641
=========== =========== ============ ===========
Undistributed net realized gain (loss) on
investments $ 2,565,212 $ -- $ 8,901,607 $ --
=========== =========== ============ ===========
Distributions in excess of net realized gain
on investments $ -- $ 326,708 $ -- $ 15,218
=========== =========== ============ ===========
Undistributed net investment income (loss) $ (60,015) $ -- $ 2,401 $ --
=========== =========== ============ ===========
SHARE ACTIVITY:
Shares sold 801,935 1,400,572 1,597,398 2,412,572
Reinvestment of distributions -- 342,551 13,353 258,782
Shares redeemed (19,931) (17,586) (29,273) (18,404)
----------- ----------- ------------ -----------
Net increase in number of shares 782,004 1,725,537 1,581,478 2,652,950
=========== =========== ============ ===========
<CAPTION>
EQUITY INDEX
--------------
FOR THE PERIOD
ENDED JUNE 30,
1998(A)
------------
(UNAUDITED)
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 6,155
Net realized gain (loss) on investments and
financial futures (778)
Net change in unrealized appreciation of
investments 44,555
----------
Net increase in net assets from
operations 49,932
----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (6,050)
In excess of net investment income --
From net realized gain from investment
transactions --
In excess of realized gain on investment
transactions --
Tax return of capital distribution --
----------
Decrease in net assets from
distributions to shareholders (6,050)
----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 4,318,132
Net asset value of shares issued to
shareholders from reinvestment of
distributions 6,050
Cost of shares redeemed (12)
----------
Increase in net assets from capital
share transactions 4,324,170
----------
NET INCREASE IN NET ASSETS 4,368,052
NET ASSETS-BEGINNING OF PERIOD --
----------
NET ASSETS-END OF PERIOD $4,368,052
==========
Undistributed net realized gain (loss) on
investments $ (778)
==========
Distributions in excess of net realized gain
on investments $ --
==========
Undistributed net investment income (loss) $ 105
==========
SHARE ACTIVITY:
Shares sold 433,059
Reinvestment of distributions 601
Shares redeemed (1)
----------
Net increase in number of shares 433,659
==========
</TABLE>
- -------------------------------------------------
(a) For the period May 1, 1998, date of commencement of operations, through June
30, 1998.
See accompanying notes to financial statements.
20 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 23
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND
--------------------------------------------------------------------------
FOR SIX MONTHS YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 23, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995 1994(A)
-------------- ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 10.48 $ 10.15 $ 10.48 $ 9.69 $ 10.00
-------- ------- ------- ------- -------
Net investment income 0.28 0.60 0.59 0.64 0.22
Net realized and unrealized
appreciation (depreciation) 0.12 0.35 (0.33) 0.94 (0.31)
-------- ------- ------- ------- -------
Total from investment
operations 0.40 0.95 0.26 1.58 (0.09)
-------- ------- ------- ------- -------
Distributions:
From net investment income (0.28) (0.60) (0.59) (0.64) (0.22)
From net realized gains from
investments -- (0.02) -- (0.15) --
-------- ------- ------- ------- -------
Total distributions (0.28) (0.62) (0.59) (0.79) (0.22)
-------- ------- ------- ------- -------
Net increase (decrease) in
net asset value 0.12 0.33 (0.33) 0.79 (0.31)
-------- ------- ------- ------- -------
NET ASSET VALUE --
END OF PERIOD $ 10.60 $ 10.48 $ 10.15 $ 10.48 $ 9.69
======== ======= ======= ======= =======
Total return 3.85%(b) 9.67% 2.69% 16.69% (.90%)(b)
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $ 30,086 $22,365 $14,622 $ 9,016 $ 5,112
Ratio of expenses to average net
assets 0.75%(c) 0.75% 0.75% 0.75% 0.75%(c)
Ratio of expenses to average net
assets excluding waivers/
reimbursements(d) 0.79%(c) 0.88% 1.01% 1.47% 1.94%(c)
Ratio of net investment income to
average net assets 5.66%(c) 6.06% 6.11% 6.54% 6.09%(c)
Ratio of net investment income to
average net assets excluding
waivers/ reimbursements(d) 5.62%(c) 5.93% 5.85% 5.80% 4.90%(c)
Portfolio turnover 10.9% 21.3% 21.3% 34.1% 3.5%
</TABLE>
- ----------------------------------------
(a) Commencement of operations began August 23, 1994.
(b) Not Annualized.
(c) Annualized.
(d) Ratios calculated as if no expenses were waived.
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 21
<PAGE> 24
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSET ALLOCATION
-----------------------------------------------------------------------------
FOR SIX MONTHS YEAR ENDED YEAR ENDED YEAR ENDED SEPTEMBER 29, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995 1994(A)
-------------- ------------ ------------ ------------ ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 13.19 $ 11.93 $ 11.24 $ 9.81 $ 10.00
-------- ------- ------- ------- -------
Net investment income 0.17 0.39 0.34 0.36 0.06
Net realized and unrealized
appreciation (depreciation) 1.30 2.31 0.98 1.64 (0.19)
-------- ------- ------- ------- -------
Total from investment
operations 1.47 2.70 1.32 2.00 (0.13)
-------- ------- ------- ------- -------
Distributions:
From net investment income (0.17) (0.39) (0.34) (0.36) (0.06)
From net realized gains from
investments -- (1.05) (0.23) (0.21) --
In excess of realized gains
from investment transactions -- -- (0.04) -- --
Tax return of capital -- -- (0.02) -- --
-------- ------- ------- ------- -------
Total distributions (0.17) (1.44) (0.63) (0.57) (0.06)
-------- ------- ------- ------- -------
Net increase (decrease) in net
asset value 1.30 1.26 0.69 1.43 (0.19)
-------- ------- ------- ------- -------
NET ASSET VALUE --
END OF PERIOD $ 14.49 $ 13.19 $ 11.93 $ 11.24 $ 9.81
======== ======= ======= ======= =======
Total return 11.17%(b) 22.90% 11.92% 20.69% (1.32%)(b)
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $ 73,743 $41,446 $14,883 $ 5,455 $ 2,063
Ratio of expenses to average net
assets 1.00%(c) 1.00% 1.00% 1.00% 1.00%(c)
Ratio of expenses to average net
assets excluding waivers/
reimbursements(d) 1.03%(c) 1.15% 1.44% 1.96% 2.36%(c)
Ratio of net investment income
to average net assets 2.80%(c) 3.24% 3.27% 3.66% 1.88%(c)
Ratio of net investment income
to average net assets excluding
waivers/ reimbursements(d) 2.77%(c) 3.07% 2.83% 2.70% 0.52%(c)
Portfolio turnover 20.3% 60.9% 64.8% 66.3% --
</TABLE>
- -------------------------------------
(a) Commencement of operations began September 29, 1994.
(b) Not Annualized.
(c) Annualized.
(d) Ratios calculated as if no expenses were waived.
See accompanying notes to financial statements.
22 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 25
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES
---------------------------------------------------------------------------
FOR SIX MONTHS YEAR ENDED YEAR ENDED YEAR ENDED NOVEMBER 3, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995 1994(A)
-------------- ------------ ------------ ------------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 14.21 $ 12.11 $ 11.52 $ 9.70 $ 10.00
-------- ------- ------- ------- -------
Net investment income (loss) (0.01) (0.03) 0.18 0.04 --
Net realized and unrealized
appreciation (depreciation) 2.30 3.63 1.62 2.29 (0.30)
-------- ------- ------- ------- -------
Total from investment
operations 2.29 3.60 1.80 2.33 (0.30)
-------- ------- ------- ------- -------
Distributions:
From net investment income -- -- (0.19) (0.04) --
From net realized gains from
investments -- (1.48) (0.78) (0.47) --
In excess of realized gains
from investment
transactions -- -- (0.24) -- --
Tax return of capital -- (0.02) -- -- --
-------- ------- ------- ------- -------
Total distributions -- (1.50) (1.21) (0.51) --
-------- ------- ------- ------- -------
Net increase (decrease) in
net asset value 2.29 2.10 0.59 1.82 (0.30)
-------- ------- ------- ------- -------
NET ASSET VALUE --
END OF PERIOD $ 16.50 $ 14.21 $ 12.11 $ 11.52 $ 9.70
======== ======= ======= ======= =======
Total return 16.12%(b) 29.81% 15.67% 24.06% (3.00%)(b)
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $ 71,790 $50,707 $22,339 $ 6,685 $ 940
Ratio of expenses to average net
assets .99%(c) 1.10% 1.06% 0.90% 0.90%(c)
Ratio of expenses to average net
assets excluding waivers/
reimbursements(d) .99%(c) 1.11% 1.40% 2.78% 2.96%(c)
Ratio of net investment income
to average net assets (.20%)(c) (.25%) 1.85% 0.46% (.17%)(c)
Ratio of net investment income
to average net assets
excluding waivers/
reimbursements(d) (.20%)(c) (.26%) 1.51% (1.42%) 2.22%)(c)
Portfolio turnover 49.7% 175.6% 326.9% 193.3% 3.5% %
</TABLE>
- -------------------------------------
(a) Commencement of operations began November 3, 1994
(b) Not Annualized.
(c) Annualized.
(d) Ratios calculated as if no expenses were waived.
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 23
<PAGE> 26
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH
--------------------------------------------------------------------------
FOR SIX MONTHS YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 23, -
ENDED JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995 1994(A)
-------------- ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 17.21 $ 13.67 $ 12.12 $ 9.99 $ 10.00
-------- ------- ------- ------- -------
Net investment income 0.04 0.10 0.16 0.20 0.05
Net realized and unrealized
appreciation 3.79 4.25 1.86 2.20 0.01
-------- ------- ------- ------- -------
Total from investment
operations 3.83 4.35 2.02 2.40 0.06
-------- ------- ------- ------- -------
Distributions:
From net investment income (0.04) (0.10) (0.16) (0.20) (0.05)
From net realized gains from
investments -- (0.71) (0.30) (0.07) (0.02)
In excess of realized gains
from investment transactions -- -- (0.01) -- --
-------- ------- ------- ------- -------
Total distributions (0.04) (0.81) (0.47) (0.27) (0.07)
-------- ------- ------- ------- -------
Net increase (decrease) in
net asset value 3.79 3.54 1.55 2.13 (0.01)
-------- ------- ------- ------- -------
NET ASSET VALUE --
END OF PERIOD $ 21.00 $ 17.21 $ 13.67 $ 12.12 $ 9.99
======== ======= ======= ======= =======
Total return 22.26%(b) 31.93% 16.67% 24.13% 0.52%(b)
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $154,826 $99,682 $42,893 $16,119 $ 4,175
Ratio of expenses to average net
assets 0.94%(c) 1.00% 0.98% 0.90% 0.90%(c)
Ratio of expenses to average net
assets excluding waivers/
reimbursements(d) 0.94%(c) 1.00% 1.16% 1.64% 2.08%(c)
Ratio of net investment income to
average net assets 0.44%(c) 0.69% 1.29% 2.02% 1.39%(c)
Ratio of net investment income to
average net assets excluding
waivers/ reimbursements(d) 0.44%(c) 0.69% 1.11% 1.28% 0.22%(c)
Portfolio turnover 43.7% 34.4% 38.7% 37.4% 4.4%
</TABLE>
- ---------------------------------------
(a) Commencement of operations began August 23, 1994.
(b) Not Annualized.
(c) Annualized.
(d) Ratios calculated as if no expenses were waived.
See accompanying notes to financial statements.
24 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 27
THE ONE(R) GROUP(SM) INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX
------------
MAY 1, -
JUNE 30,
1998(A)
--------
(UNAUDITED)
<S> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 10.00
-------
Net investment income 0.02
Net realized and unrealized appreciation 0.07
-------
Total from investment operations 0.09
-------
Distributions:
From net investment income (0.02)
-------
Net increase in net asset value 0.07
-------
NET ASSET VALUE --
END OF PERIOD $ 10.07
=======
Total return .85%(b)
RATIOS AND SUPPLEMENTAL DATA:
Net assets end of period (000) $ 4,368
Ratio of expenses to average net assets .55%(c)
Ratio of expenses to average net assets excluding waivers/
reimbursements(d) 2.90%(c)
Ratio of net investment income to average net assets 1.06%(c)
Ratio of net investment income to average net assets
excluding waivers/ reimbursements(d) (1.29%)(c)
Portfolio turnover .00%
</TABLE>
- ------------------------------------------------------
(a) Commencement of operations began May 1, 1998.
(b) Not Annualized.
(c) Annualized.
(d) Ratios calculated as if no expenses were waived.
See accompanying notes to financial statements.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 25
<PAGE> 28
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (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 five portfolios: the Government Bond Fund, the Asset Allocation
Fund, the Growth Opportunities Fund, the Large Company Growth Fund and the
Equity Index 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) Investors
Annuity.
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, November 3, 1994 for the Growth Opportunities Fund and May 1, 1998 for the
Equity Index 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
quoted sale price on the principal exchange, or if no sale, at their fair value
as determined in good faith under consistently applied procedures authorized by
the Board of Trustees. Securities traded only in the over-the-counter (OTC)
market are valued at the last quoted sale price, or if there is no sale, at the
quoted bid price provided by an independent pricing agent. Corporate debt
securities and debt securities of U.S. issuers, including municipal securities,
are valued by a combination of daily quotes and matrix evaluations provided by
dealers or by an independent pricing service approved by the Board of Trustees.
Inactive or bonds that have little or no trading activity are evaluated by the
independent pricing services through obtaining dealer quotes. Futures contracts
and options thereon traded on a commodities exchange or board of trade are
valued at the last sales price at the close of trading, or if there was no sale,
the quoted bid price at the close of trading. Securities for which reliable
market quotations are not readily available or for which the pricing agent does
not provide a valuation that in the judgement of the Fund's investment adviser,
does not represent fair value, shall each be valued in accordance with
procedures authorized by 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 Investment Company Act of 1940 as amended.
26 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 29
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1998 (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, 1997, 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>
Government Bond................. $ 4,681 $ (3,188) $ 1,493
Large Company Growth............ 11,566 6,080 (17,646)
Growth Opportunity.............. 87,568 (18,420) 69,148
</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 27
<PAGE> 30
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SECURITIES LENDING
To generate additional income, the Funds may lend up to 33% of securities in
which they are invested pursuant to agreements requiring that the loan be
continuously secured by cash, U.S. Government or U.S. Government Agency
securities, shares of an investment trust or mutual fund, or any combination of
cash and such securities as collateral equal at all times to at least 100% of
the market value plus accrued interest on the securities lent. The Funds
continue to earn dividends and interest on securities lent while simultaneously
seeking to earn interest on the investment of collateral. Collateral is marked
to market daily to provide a level of collateral at least equal to the market
value of securities lent. There may be risks of delay in recovery of the
securities or even loss of rights in the collateral should the borrower of the
securities fail financially. However, loans will be made only to borrowers
deemed by the Advisor to be of good standing and creditworthy under guidelines
established by the Board of Trustees and when, in the judgement of the Advisor,
the consideration which can be earned currently from such securities loans
justifies the attendant risk. Loans are subject to termination by the Funds or
the borrower at any time, and are, therefore, not considered to be illiquid
investments. As of June 30, 1998, the following Funds had securities with the
following market values on loan (amounts in thousands):
<TABLE>
<CAPTION>
MARKET VALUE MARKET VALUE MARKET VALUE
OF CASH OF NON-CASH OF LOANED
COLLATERAL COLLATERAL SECURITIES
------ ------ ------
<S> <C> <C> <C>
Government Bond......................... $ 517 $2,163 $2,553
Asset Allocation........................ 669 5,872 6,261
Growth Opportunities.................... 8,012 -- 7,700
Large Company Growth.................... 2,929 -- 2,857
Equity Index............................ 73 -- 71
</TABLE>
The loaned securities were fully collateralized by U.S. Government securities as
of June 30, 1998.
NOTE 3 -- RELATED PARTY TRANSACTIONS
As Investment Advisor, Banc One Investment Advisors Corporation (the "Investment
Advisor") 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 the Large Company Growth Fund and .30% of the average
daily net assets of the Equity Index Fund. Such fees are calculated daily and
paid monthly.
Nationwide Advisory Services, Inc. ("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 (excluding the Equity Index Fund) 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. NAS earns an annual rate of .14% of the
aggregate average daily net assets of the Equity Index Fund.
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.
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, 1.00% of the average daily net assets of the
Large Company Growth Fund and .55% of the
28 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
<PAGE> 31
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
average daily net assets of the Equity Index Fund. Prior to May 1, 1996, the
Growth Opportunities and Large Company Growth Funds' expense limits were both
.90%. During the period ended June 30, 1998, the Investment Advisor voluntarily
waived fees in the amount of $4,609 in the Government Bond Fund, $7,597 in the
Asset Allocation Fund, and $13,620 in the Equity Index Fund, representing
$0.002, $0.001, and $0.031 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 period ended June 30, 1998 are summarized as
follows:
<TABLE>
<CAPTION>
SECURITIES
PURCHASES SALES
----------- -----------
<S> <C> <C>
Government Bond................................... $ 8,086,053 $ 2,063,398
Asset Allocation.................................. 30,925,221 8,602,659
Growth Opportunities.............................. 43,357,696 29,441,153
Large Company Growth.............................. 93,379,378 51,351,968
Equity Index...................................... 4,306,822 5,877
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
PURCHASES SALES
----------- -----------
<S> <C> <C>
Government Bond................................... $ 1,708,047 $ 150,750
Asset Allocation.................................. 5,000,478 1,712,969
Equity Index...................................... 99,904 100,000
</TABLE>
The Asset Allocation Fund is engaged in trading financial futures contracts. The
Fund is 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.
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.
THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT 29
<PAGE> 32
THE ONE(R) GROUP(SM) INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments at June 30, 1998,
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 $ 827,760 $ (107) $ 827,653
Asset Allocation 6,560,228 (436,098) 6,124,130
Growth Opportunities 12,954,740 (3,413,680) 9,541,060
Large Company Growth 35,336,544 (1,677,965) 33,658,579
Equity Index 175,886 (131,334) 44,552
</TABLE>
NOTE 5 -- SHARES HELD BY AFFILIATES
As of June 30, 1998, Nationwide Life and Annuity Insurance Company beneficially
owned shares of the Funds with the following net asset values:
<TABLE>
<S> <C>
Government Bond $6,762,311
Asset Allocation 1,775,586
Growth Opportunities 52,449
Large Company Growth 7,044,888
Equity Index 2,521,254
</TABLE>
As of June 30, 1998, Banc One Capital Corporation owned shares of the Equity
Index Fund with a net asset value of $756,376.
30 THE ONE(R) GROUP(SM) INVESTMENT TRUST SEMI-ANNUAL REPORT
