<PAGE> 1
<TABLE>
<S> <C>
SECURITIES AND EXCHANGE COMMISSION --------------------------
WASHINGTON, D.C. 20549 OMB Approval
FORM N-17f-2 --------------------------
OMB Number: 3235-0360
Certificate of Accounting of Securities and Similar Expires: July 31, 1994
Investment in the Custody of Estimated average burden
Management Investment Companies hours per response... 0.05
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
- ----------------------------------------------------------------------------------------------------------------------------------
1. Investment Company Act File Number: Date examination completed
811-7874 2/17/99
- ----------------------------------------------------------------------------------------------------------------------------------
2. State identification Number: N/A
----------------------------------------------------------------------------------------------------------------------------
AL AK AZ AR CA CO
----------------------------------------------------------------------------------------------------------------------------
CT DE DC FL GA HI
----------------------------------------------------------------------------------------------------------------------------
ID IL IN IA KS KY
----------------------------------------------------------------------------------------------------------------------------
LA ME MD MA MI MN
----------------------------------------------------------------------------------------------------------------------------
MS MO MT NE NV NH
----------------------------------------------------------------------------------------------------------------------------
NJ NM NY NC ND OH
----------------------------------------------------------------------------------------------------------------------------
OK OR PA RI SC SD
----------------------------------------------------------------------------------------------------------------------------
TN TX UT VT VA WA
----------------------------------------------------------------------------------------------------------------------------
WV WI WY PUERTO RICO
----------------------------------------------------------------------------------------------------------------------------
Other (specify):
- ----------------------------------------------------------------------------------------------------------------------------------
3. Exact name of investment company as specified in representation statement:
One Group Investment Trust
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip code):
Three Nationwide Plaza, Columbus, OH 43215
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 2
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of One Group Investment Trust
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, about the Balanced Portfolio (formerly the Asset Allocation Fund),
the Mid Cap Growth Portfolio (formerly the Growth Opportunities Fund), the Large
Cap Growth Portfolio (formerly the Large Company Growth Fund), the Equity Index
Portfolio (formerly the Equity Index Fund), the Diversified Equity Portfolio
(accounting successor to the Pegasus Variable Growth and Value Fund), the
Diversified Mid Cap Portfolio (accounting successor to the Pegasus Variable
Mid-Cap Opportunity Fund), the Government Bond Portfolio (formerly the
Government Bond Fund), the Mid Cap Value Portfolio (accounting successor to the
Pegasus Variable Intrinsic Value Fund) and the Bond Portfolio (accounting
successor to the Pegasus Variable Bond Fund) (separate portfolios constituting
One Group Investment Trust, hereafter referred as the "Funds") compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of December 31, 1999 as it relates to the
collateral held in exchange for securities lent on behalf of the Funds.
Management is responsible for the Funds' compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Funds' compliance based on our examination.
Our examination was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about the Funds'
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. Included among our procedures were
the following tests performed as of December 31, 1999, with respect to agreement
of security purchases and maturities, for the period from November 10, 1999 (the
date of our last examination), through December 31, 1999, with respect to
collateral held in exchange for securities lent on behalf of the Funds:
o Confirmation, or other procedures as we considered necessary, of all
securities held as collateral in book entry form by the Depository
Trust Company and broker/banks;
o Confirmation, or other procedures as we considered necessary, of all
repurchase agreements and underlying collateral with brokers/banks;
o Confirmation, or other procedures as we considered necessary, of all
letters of credit entered into with brokers/banks as collateral;
o Reconciliation of all such securities held as collateral to the books
and records of the Funds and Bank One Trust Company N.A. and;
o Agreement, or other procedures as we considered necessary, of certain
purchases and maturities of collateral since our last report from the
books and records of the Funds to broker confirmations.
<PAGE> 3
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Funds' compliance with
specified requirements.
In our opinion, management's assertion that the Funds were in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of December 31, 1999, is fairly stated, in all material
respects.
This report is intended solely for the information and use of the Board of
Directors, management, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
[PRICEWATERHOUSECOOPERS LLP (SIGNED)]
Columbus, Ohio
February 24, 2000
<PAGE> 4
MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS OF THE
INVESTMENT COMPANY ACT OF 1940
We, as members of management of the Balanced Portfolio (formerly the Asset
Allocation Fund), the Mid Cap Growth Portfolio (formerly the Growth
Opportunities Fund), the Large Cap Growth Portfolio (formerly the Large Company
Growth Fund), the Equity Index Portfolio (formerly the Equity Index Fund), the
Diversified Equity Portfolio (accounting successor to the Pegasus Variable
Growth and Value Fund), the Diversified Mid Cap Portfolio (accounting successor
to the Pegasus Variable Mid-Cap Opportunity Fund), the Government Bond Portfolio
(formerly the Government Bond Fund), the Mid Cap Value Portfolio (accounting
successor to the Pegasus Variable Intrinsic Value Fund) and the Bond Portfolio
(accounting successor to the Pegasus Variable Bond Fund) (separate portfolios
constituting One Group Investment Trust, hereafter referred as the "Funds"), are
responsible for complying with the requirements of subsections (b) and (c) of
Rule 17f-2, Custody of Investments by Registered Management Investment
Companies, of the Investment Company Act of 1940. We are also responsible for
establishing and maintaining effective internal controls over compliance with
those requirements. We have performed an evaluation of the Funds' compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of December
31, 1999, and from November 10, 1999 through December 31, 1999, as it relates to
the collateral held in exchange for securities lent on behalf of the Funds.
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of December 31, 1999 and from November 10, 1999 through December
31, 1999, with respect to collateral held in exchange for securities lent on
behalf of the Funds.
One Group Investment Trust
By: /s/ KAREN R. TACKETT
------------------------------------------------------
Name of Company Official
VICE PRESIDENT and SECRETARY
------------------------------------------------------
Title
MARCH 6, 2000
------------------------------------------------------
Date
