N-30D 1 l95016anv30d.txt ONE GROUP FUNDS EQUITY FUNDS N-30D 1 Report Equity Funds --------------------------------------------------------- Twelve months ended June 30, 2002 One Group Annual Report Portfolio performance review............ 2 Schedules of portfolio investments...... 34 Statements of assets and liabilities.... 106 Statements of operations................ 109 Statements of changes in net assets..... 112 Schedules of capital stock activity..... 117 Financial highlights.................... 122 Notes to financial statements........... 138 Report of independent accountants....... 147 Trustees................................ 148 Officers................................ 149
ONE GROUP(R) Mutual Funds NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE This material must be preceded or accompanied by a current prospectus ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 2 Report One Group Small Cap Growth Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Chris Guinther and Dave Robinson, members of the small cap team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? For the 12-month period ended June 30, 2002, the Fund's I share class posted a total return of -11.84%. (For information on other share classes, see page 3.) How did this return compare to the market averages? The Fund outperformed the average return for its peer group of funds, but it underperformed the S&P SmallCap 600/ BARRA Growth Index, which returned -6.28% (see inside the back cover for details). To what do you attribute the difference in return? There are three reasons for the Fund's underperformance. First, during the fiscal year we gradually moved money out of the consumer sectors and into technology and health care. After two years of extreme underperformance, we believe technology and biotechnology sectors offer more reasonable valuations with the potential to perform well in the future. Although this shift hurt the Fund's short-term performance, we believe it will benefit shareholders over time. The second reason for the shortfall is due to our emphasis on companies with improving fundamentals and favorable price trends. The broad market has rejected these companies in favor of those with attractive valuation characteristics. The third reason for the disparity comes from our bias toward the larger companies in the small-cap universe, while the market continued to favor the smaller companies. Which areas of the Fund offered strong performance for shareholders? Strong consumer spending during the year led to good results among the Fund's consumer holdings, particularly in the restaurant, retail and housing industries. In addition, the Fund's financial sector performed well, as stocks with defensive characteristics benefited in the fiscal year's down market. What about technology stocks? Most of the Fund's lagging industries were technology-related. Investors moved out of companies with high growth rates and high risk factors and those that react strongly to negative market and economic sentiments. As such, semiconductors, communications technology and biotechnology stocks declined more than 35%. Software, hardware and technology services holdings declined more than 30%. How are you positioning the Fund for the future? We are consciously emphasizing strong growth-oriented sectors, such as technology and health care, because we believe the market is nearing its bottom point. As the economy resumes a stronger pattern of growth, we believe it only will be a matter of time before growth-stock strategies come back into favor. We are positioning the Fund for a likely turnaround in the market. Our goal is to attempt to outperform on the upside rather than to try to outperform in what we believe are the last few innings of a defensive market.
Top 10 Holdings* 1. Cephalon, Inc.......... 1.4% 2. NVR, Inc............... 1.4% 3. XTO Energy, Inc........ 1.3% 4. Cerner Corporation..... 1.1% 5. Pier One Imports....... 1.1% 6. Alliant Techsystems, Inc.................... 1.1% 7. Corinthian Colleges Inc.................... 1.1% 8. Medicis Pharmaceutical......... 1.1% 9. Zebra Technologies Corporation............ 1.1% 10. Regis Corporation...... 1.0%
Portfolio Allocation* Common Stock.............. 99.2% Cash Equivalents.......... 0.8%
Top 5 Industries* 1. Health Care............ 18.8% 2. Technology............. 16.3% 3. Retail................. 13.6% 4. Business Equipment & Services............... 10.2% 5. Financial Services..... 7.5%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Small Cap Growth Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 3 [GRAPH] Report Value of $10,000 Investment Class A Class A* S&P SmallCap 600 6/92 10000 9472 10000 6/93 12629 11962 12848 6/94 13092 12400 13088 6/95 14648 13874 15753 6/96 17700 16765 19851 6/97 20094 19032 24156 6/98 24773 23464 28858 6/99 24641 23340 28191 6/00 32474 30759 32246 6/01 29484 27927 35831 6/02 25937 24567 35928 S&P SmallCap 600/BARRA Growth 6/92 10000 6/93 12848 6/94 12530 6/95 15302 6/96 19397 6/97 21674 6/98 24814 6/99 24571 6/00 31438 6/01 28904 6/02 27088
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -11.84% -12.03% -16.68% -12.73% -17.09% -12.75% -13.62% ------------------------------------------------------------------------------------------------- 5 year 5.42% 5.24% 4.10% 4.36% 4.09% 4.39% 4.39% ------------------------------------------------------------------------------------------------- 10 year 10.10% 10.00% 9.40% 9.12% 9.12% 9.17% 9.17% ------------------------------------------------------------------------------------------------- Since Inception 11.07% 10.98% 10.44% 10.10% 10.10% 10.15% 10.15% ------------------------------------------------------------------------------------------------- Inception Date 7/1/91 7/1/91 7/1/91 7/1/91 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class I (3/26/96), Class B (9/12/94) and Class C (11/4/97), performance is based on Class A share performance adjusted to reflect the deduction of fees and expenses including the absence of a sales charge in the case of Class I shares. Small capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. The above-quoted performance data includes the performance of the Paragon Gulf South Growth Fund for the period before it was acquired by the One Group Small Cap Growth Fund on March 26, 1996. Prior to March 26, 1996 performance for the Class I shares is based on Class A share performance adjusted to reflect the absence of sales charges. The performance of the Small Cap Growth Fund is measured against the S&P SmallCap 600 Index, an unmanaged index generally representative of the performance of the small companies within the U.S. stock market. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. The S&P SmallCap 600/BARRA Growth Index represents the performance of 600 small capitalization domestic stocks with a higher price to book ratio. The S&P SmallCap 600/BARRA Growth Index consists of the average monthly returns of the S&P SmallCap 600 Index for periods prior to January 1994. Thereafter, the data is from the S&P SmallCap 600/BARRA Growth Index, which corresponds with the initiation of the S&P SmallCap 600/BARRA Growth Index on January 1, 1994. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 4 Report One Group Small Cap Value Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Larry Baumgartner and Brad Stauffer, members of the small cap team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of 15.76% for the one-year period ended June 30, 2002. (For information on other share classes, see page 5.) What does this strong return mean for shareholders? Shareholders should be pleased that the Fund significantly outperformed its benchmark, the Russell 2000 Value Index, which returned 8.49%. In addition, the Fund outperformed the average return for its peer group by more than 10 percentage points (see inside the back cover for details). Good stock selection and our emphasis on early-cycle sectors of the economy, such as retail, trucking and basic industry, helped generate the Fund's strong performance over the last 12 months. Why did small-cap value stocks perform so much better than other stocks? When the Federal Reserve Board implemented its aggressive rate-cutting strategy in early 2001, the outlook for economically sensitive stocks dramatically improved. Investors moved into small-cap value stocks, which are both economically sensitive and attractively valued compared to growth stocks and larger-capitalization stocks. Did you employ any out-of-the-ordinary strategies, or was it business as usual? It was business as usual, as we pursued our ongoing strategy of investing in inexpensively valued small-cap stocks, with a goal of limiting downside risk and enhancing upside potential. As always, our stringent stock-selection process emphasized companies with sound balance sheets and sustainable business models. This strategy of investing in reliable business models allowed the Fund to participate in the small-cap value rally, while our desire for low valuations and sound balance sheet fundamentals limited the Fund's downside risk. Should shareholders expect this outstanding performance to continue? After two years of strong performance from the small-cap value sector, the coming year may bring more balance between styles and capitalization tiers. Nevertheless, we remain enthusiastic about the future. Indeed, small-cap value stocks are sensitive to the prospects for the domestic economy and changes in interest rates. Thus, because we believe we are in the beginning stage of the next economic cycle, we expect small-cap stocks to offer good return potential in the year ahead.
Top 10 Holdings* 1. Trinity Industries, Inc. .................. 1.3% 2. Olin Corporation....... 1.3% 3. Felcor Lodging Trust Inc. .................. 1.3% 4. Ashland Inc. .......... 1.2% 5. Health Net, Inc. ...... 1.2% 6. Cummins Engine, Inc.... 1.1% 7. Associated Banc-Corp... 1.1% 8. Countrywide Credit..... 1.1% 9. CNF, Inc. ............. 1.1% 10. Pride International Inc. .................. 1.1%
Portfolio Allocation* Common Stock.............. 93.0% Cash Equivalents.......... 5.8% Unit Investment Trust..... 1.2%
Top 5 Industries* 1. Financial Services..... 19.6% 2. Technology............. 10.8% 3. Raw Materials.......... 9.4% 4. Retail................. 8.9% 5. Capital Goods.......... 7.5%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Small Cap Value Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 5 [GRAPH] Report Value of $10,000 Investment Class I Russell 2000 Value 6/92 10000 10000 6/93 12309 13083 6/94 11665 14066 6/95 12947 16127 6/96 16387 19533 6/97 21998 25050 6/98 26328 30030 6/99 22838 28314 6/00 22204 28049 6/01 31969 36709 6/02 37006 39827
Average Annual Total Return as of June 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year 15.76% 15.50% 9.46% 14.65% 9.65% 14.68% 13.68% ------------------------------------------------------------------------------------------------- 5 year 10.96% 10.69% 9.50% 9.88% 9.61% 9.87% 9.87% ------------------------------------------------------------------------------------------------- 10 year 13.98% 13.61% 13.00% 12.85% 12.85% 12.83% 12.83% ------------------------------------------------------------------------------------------------- Since Inception 10.51% 10.14% 9.94% 9.42% 9.42% 9.42% 9.42% ------------------------------------------------------------------------------------------------- Inception Date 6/30/72 6/30/72 6/30/72 6/30/72 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class C (3/22/99) performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. Small capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. The Small Cap Value Fund commenced operations as the Pegasus Small Cap Opportunity Fund on January 27, 1995 subsequent to the transfer of assets from a common trust fund with materially equivalent investment objectives, policies, guidelines and restrictions as the Fund. The quoted performance of the Fund includes the performance of the common trust fund for the Pegasus Small Cap Opportunity Fund for periods prior to the Fund's commencement of operations as adjusted to reflect the expenses associated with the Fund. Common trust funds are not registered under the Investment Company Act of 1940 ("1940 Act") and, therefore, are not subject to certain investment restrictions, limitations and diversification requirements imposed by the 1940 Act and the Internal Revenue Code. If the common trust fund had been registered under the 1940 Act, its performance may have been adversely affected. The above quoted performance data includes the performance of a common trust fund and the Pegasus Small Cap Opportunity Fund prior to the acquisition by the One Group Small Cap Value Fund on March 22, 1999. The performance of the Small Cap Value Fund is measured against the Russell 2000 Value Index, an unmanaged index measuring the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 6 Report One Group Mid Cap Growth Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Dan Kapusta, managing director of the equity growth team and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -15.20% for the one-year period ended June 30, 2002. (For information on other share classes, see page 7.) How did the Fund's return compare to the market and similarly managed funds? Compared to its peer group of funds, the Fund outperformed by nearly 10 percentage points. But, compared to the S&P MidCap 400/BARRA Growth Index, the Fund underperformed by almost 3 percentage points (see inside the back cover for details). We attribute the underperformance to earnings disappointments, particularly in the retail, health care and consumer cyclicals sectors. Did the market continue to favor value stocks over growth stocks? Growth stocks once again took a back seat to value stocks during the year, as the cleanup from the burst of the technology bubble in March 2000 continued. In particular, accounting abuses and high-profile corporate mismanagement among companies once considered "blue-chip," stable-growth businesses unnerved investors. Value stocks were not immune from investor skepticism, but they suffered less damage than growth stocks. In addition, investors punished larger-cap stocks more than smaller-cap stocks. What key strategies have you implemented for this challenging climate? We continued to pursue our basic strategy of looking for companies across economic sectors that exhibit positive fundamentals, such as earnings revisions and surprises and revenue and price momentum. We also want to invest in companies that offer reasonable valuations relative to other securities in their respective economic sectors. In the key growth sector of technology, we continue to invest in defensively positioned companies, such as services and select software names with reliable earnings. In the health care sector, we have been re-examining the Fund's overweight in biotechnology, due to several recent earnings disappointments in that industry. Our consumer-sector focus has been on steady-growth companies, as we await more evidence of an industrial production recovery. Are we in for more challenges, or are things starting to turn around? Today's market climate is unlike any in recent memory, including the crash of 1987 or the recession of the early 1990s. Nevertheless, we're facing a classic bear versus bull debate. The bears believe that stock valuations still are too high, corporate profits are not growing fast enough, accounting scandals will linger, and geopolitical risk remains high. The bulls argue that a recovering economy, record-low interest rates and an active consumer have set the stage for a market upturn. Of course, we don't know which side ultimately will prevail, but we do know that the stock market is headed for its first three-year losing streak in more than 60 years, media headlines are dreary, and bear markets are the most frightening when they near their bottom. As such, we encourage shareholders to stay the course and focus on long-term performance opportunities.
Top 10 Holdings* 1. Electronic Arts, Inc.................... 2.5% 2. Sungard Data Systems, Inc.................... 2.0% 3. North Fork Bancorp, Inc.................... 2.0% 4. Quest Diagnostics, Inc.................... 1.9% 5. Gilead Sciences, Inc.................... 1.8% 6. Affiliated Computer Services............... 1.7% 7. McCormick & Co......... 1.6% 8. Microchip Technology, Inc.................... 1.6% 9. Brinker International, Inc.................... 1.4% 10. Greenpoint Financial, Corp................... 1.4%
Portfolio Allocation* Common Stock.............. 96.0% Cash Equivalents.......... 4.0%
Top 5 Industries* 1. Health Care............ 20.5% 2. Technology............. 16.7% 3. Financial Services..... 11.9% 4. Business Equipment & Services............... 11.7% 5. Retail................. 9.6%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Mid Cap Growth Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 7 [GRAPH] Report Value of $10,000 Investment Class I S&P MidCap 400/BARRA Growth 6/92 10000 10000 6/93 12136 12127 6/94 12117 11896 6/95 14510 14795 6/96 18084 17659 6/97 22198 21777 6/98 29104 27633 6/99 37368 36010 6/00 51062 49254 6/01 44146 44238 6/02 37435 38735
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -15.20% -15.41% -19.85% -16.06% -20.24% -16.08% -16.92% ------------------------------------------------------------------------------------------------- 5 year 11.02% 10.72% 9.54% 9.87% 9.63% 10.07% 10.07% ------------------------------------------------------------------------------------------------- 10 year 14.11% 13.88% 13.27% 12.98% 12.98% 13.08% 13.08% ------------------------------------------------------------------------------------------------- Since Inception 14.66% 14.36% 13.90% 13.50% 13.50% 13.58% 13.58% ------------------------------------------------------------------------------------------------- Inception Date 3/2/89 3/2/89 3/2/89 3/2/89 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (2/18/92), Class B (1/14/94) and Class C (11/4/97), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The performance of the Mid Cap Growth Fund is measured against the S&P MidCap 400/BARRA Growth Index, an unmanaged index generally representative of the performance of the highest price to book securities in the S&P MidCap 400 Index. This index is used by over 95% of U.S. managers and pension plan sponsors with more than $25 billion being indexed to the S&P MidCap 400. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 8 Report One Group Mid Cap Value Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Bill Turner, member of the equity value team; Kathy Dodd, managing director of the equity value team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of 0.24% for the one-year period ended June 30, 2002. (For information on other share classes, see page 9.) How should shareholders interpret the Fund's performance? Mid-cap value stocks were one of the best-performing equity styles during the fiscal year's challenging environment. Although the Fund's return was only slightly positive, other areas of the market suffered double-digit declines. The Fund outperformed the average return for its peer group, but it underperformed its benchmark, the S&P MidCap 400/ BARRA Value Index, which returned 3.09% (see inside the back cover for details). Half of the Fund's 16 market sectors made positive contributions to performance, and half made negative contributions. But, the negative sectors detracted much more from the Fund's performance than the positive sectors contributed, resulting in a return that lagged that of the benchmark. How did you attempt to deal with this difficult market? Our strategy generally remains the same, regardless of the market climate. Our goal is to invest in attractively priced stocks with improving earnings growth that will lead to eventual price appreciation. We focus on stocks with an earnings catalyst, or some factor expected to improve the company's earnings growth, such as the introduction of a new product, a management turnaround or a merger. Was this strategy effective? Our strategy often works well, because our detailed and frequent research and analysis allows us to form a solid investment thesis about each of the companies we follow. But, our strategy becomes more challenging when company managements cannot accurately forecast sales or earnings because of an unusual economic downturn, such as this most recent one. In such situations, the earnings catalyst we were counting on may appear late or not at all, or earnings may not improve as we expected. Are you optimistic going forward? The economy owes much of its recovery to consumers and their willingness to spend. But, at some point, rising unemployment, a falling stock market and concerns about financial health may slow the outlay of consumer funds. If this slowing occurs before corporate spending recovers, the economy may slide back into recession. Another concern is the barrage of accounting problems and the likely long-term impact on investor confidence. Compounding all of these worries is the possibility of more terrorist attacks. In short, there are few reasons to be wildly optimistic about the prospects for the stock market over the next year. The market may be closing in on a bottom, but once we get there investors probably will move it up slowly. As such, we have positioned the Fund defensively and plan to keep it that way until we see signs of a stronger economic recovery.
Top 10 Holdings* 1. M & T Bank Corporation............ 2.3% 2. Tyson Foods Inc........ 1.9% 3. National Commerce Financial.............. 1.6% 4. RJ Reynolds Tobacco.... 1.4% 5. American Water Works, Inc.................... 1.3% 6. Lennar Corp............ 1.3% 7. Radian Group, Inc...... 1.2% 8. Pioneer Natural Resources.............. 1.2% 9. Lear Corporation....... 1.1% 10. Wisconsin Energy Corp................... 1.1%
Portfolio Allocation* Common Stock.............. 97.3% Cash Equivalents.......... 2.7%
Top 5 Industries* 1. Financial Services..... 26.0% 2. Utilities.............. 11.2% 3. Technology............. 9.4% 4. Consumer Non-Durable... 9.2% 5. Energy................. 8.2%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Mid Cap Value Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 9 [GRAPH] Report Value of $10,000 Investment Class I S&P MidCap 400/BARRA Value 6/92 10000 10000 6/93 11358 12330 6/94 11817 12394 6/95 13711 14907 6/96 16468 18320 6/97 19853 22690 6/98 25466 28743 6/99 26438 30197 6/00 26539 30247 6/01 34913 40199 6/02 34996 41439
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year 0.24% 0.00% -5.24% -0.77% -5.32% -0.77% -1.68% ------------------------------------------------------------------------------------------------- 5 year 12.00% 11.74% 10.54% 10.88% 10.63% 10.93% 10.93% ------------------------------------------------------------------------------------------------- 10 year 13.34% 13.09% 12.48% 12.24% 12.24% 12.28% 12.28% ------------------------------------------------------------------------------------------------- Since Inception 12.32% 12.04% 11.59% 11.23% 11.23% 11.24% 11.24% ------------------------------------------------------------------------------------------------- Inception Date 3/2/89 3/2/89 3/2/89 3/2/89 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (2/18/92), Class B (1/14/94) and Class C (3/22/99), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The performance of the Mid Cap Value Fund is measured against the S&P MidCap 400/BARRA Value Index, an unmanaged index generally representative of the performance of the lowest price to book securities in the S&P MidCap 400 Index. This index is used by over 95% of U.S. managers and pension plan sponsors with more than $25 billion being indexed to the S&P MidCap 400. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 10 Report One Group Diversified Mid Cap Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Mike Weiner, CFA and managing director of the equity balanced team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return for the year? For the year ended June 30, 2002, the Fund's I share class posted a total return of -8.35%. (For information on other share classes, see page 11.) How did this return compare to the market as a whole? The Fund's total return surpassed the average return for the Fund's peer group. But the Fund underperformed its benchmark, the S&P MidCap 400 Index, which posted a total return of -4.72% (see inside the back cover for comparisons to the Fund's benchmark and peer group). Relative to the index, the Fund held some winners in the technology and consumer sectors, but those winners were unable to offset disappointing results in health care and energy. What should shareholders understand about the stock market climate? A number of troubling and unprecedented issues plagued the stock market over the last year, including terrorism, economic recession and corporate financial scandals. In addition, it is our opinion that the burst of the technology bubble in 2000, at the peak of an 8-year bull market, remains one of the largest contributors to ongoing market volatility. What strategies did you implement to deal with this market? Our goal was to position the Fund in multiple themes and time frames. To that end, we focused on companies exposed to a recovering economy; companies with decent technology business models and low stock prices; companies expected to deliver sustainable, steady earnings at a good price; and companies working to turn around their fortunes. Did any individual sectors influence Fund performance? The Fund realized decent performance in the telephone, capital equipment and industrial commodities sectors. In the telephone industry, not owning growth-oriented names helped performance. In the capital equipment sector, the Fund's aerospace stocks added value. Effective stock selection in the industrial commodities sector was a positive influence on performance. On the other hand, our biotechnology emphasis was ineffective, and our lack of exposure to more stable health care companies, such as diagnostic companies, compounded the problem. Was the Fund affected by any of the high-profile corporate-credibility concerns? The Enron fallout wreaked havoc in the energy sector, the Fund's worst-performing area. Even though we didn't own Enron, and none of the Fund's energy holdings were accused of any wrongdoing, the Fund's energy stocks declined substantially in price, simply due to "guilt by association" with Enron. What is your outlook, and how will you position the Fund for shareholders? We expect to reach an earnings trough before the end of the third quarter, with a gradual recovery emerging in most market sectors. Valuations for most sectors are neither rich nor cheap, so the market likely will rely on earnings growth as a price barometer. We will keep the portfolio diversified among multiple themes and issues.
Top 10 Holdings* 1. Sungard Data Systems, Inc.................... 1.7% 2. Radian Group, Inc...... 1.6% 3. Electronic Arts, Inc.................... 1.6% 4. Tyson Foods Inc........ 1.5% 5. Compass Bancshares..... 1.5% 6. McCormick & Co......... 1.3% 7. Weatherford Intl....... 1.3% 8. Symantec Corporation... 1.2% 9. Manpower Corporation... 1.2% 10. RJ Reynolds Tobacco.... 1.2%
Portfolio Allocation* Common Stock.............. 96.6% Cash Equivalents.......... 3.4%
Top 5 Industries* 1. Financial Services..... 17.9% 2. Technology............. 13.3% 3. Health Care............ 11.0% 4. Business Equipment & Services............... 10.2% 5. Utilities.............. 7.8%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Diversified Mid Cap Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 11 [GRAPH] Report Value of $10,000 Investment Class I S&P MidCap 400 6/92 10000 10000 6/93 13369 12269 6/94 14326 12262 6/95 16462 15002 6/96 19307 18241 6/97 24897 22496 6/98 29952 28604 6/99 31592 33520 6/00 36024 39210 6/01 38234 42690 6/02 35041 40676
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -8.35% -8.62% -13.41% -9.28% -13.59% -9.27% -10.14% ------------------------------------------------------------------------------------------------- 5 year 7.07% 6.81% 5.66% 6.13% 6.02% 6.14% 6.14% ------------------------------------------------------------------------------------------------- 10 year 13.36% 13.19% 12.58% 12.32% 12.32% 12.32% 12.32% ------------------------------------------------------------------------------------------------- Since Inception 12.80% 12.53% 12.20% 11.73% 11.73% 11.71% 11.71% ------------------------------------------------------------------------------------------------- Inception Date 12/31/83 12/31/83 12/31/83 12/31/83 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class C (3/22/99) performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The Diversified Mid Cap Fund commenced operations as the Pegasus Mid Cap Opportunity Fund on June 1, 1991 subsequent to the transfer of assets from a common trust fund with materially equivalent investment objectives, policies, guidelines and restrictions as the Fund. The quoted performance of the Fund includes the performance of the common trust fund for periods prior to the Fund's commencement of operations as adjusted to reflect the expenses and sales charges associated with the Fund. Common trust funds are not registered under the Investment Company Act of 1940 ("1940 Act") and therefore, are not subject to certain investment restrictions, limitations and diversification requirements imposed by the 1940 Act and the Internal Revenue Code. If the common trust fund had been registered under the 1940 Act, its performance may have been adversely affected. The above quoted performance data includes the performance of a common trust fund and the Pegasus Mid Cap Opportunity Fund prior to the acquisition by the One Group Diversified Mid Cap Fund on March 22, 1999. The performance of the Diversified Mid Cap Fund is measured against the S&P MidCap 400 Index, an unmanaged index generally representative of the performance of the mid-size company segment of the U.S. market. This index is used by over 95% of the U.S. managers and pension plan sponsors with more than $25 billion being indexed to the S&P MidCap 400. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 12 Report One Group Large Cap Growth Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Dan Kapusta, managing director of the equity growth team and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -27.98% for the one-year period ended June 30, 2002. (For information on other share classes, see page 13.) How did the Fund's performance compare to that of the large-cap growth index? The Fund's total return was slightly lower than the total return of -26.49% for the Russell 1000 Growth Index, the Fund's market benchmark (see inside the back cover for details). Much of the underperformance relative to the index was due to some corporations' negative earnings revisions. Certain positions in the capital equipment, financials and consumer cyclicals sectors accounted for the majority of the Fund's lower return. Why were large-cap growth stocks beaten down so badly? There was a time when investors found refuge in the perceived safety of top-tier stocks with a blue-chip pedigree. But more recently, large-cap growth stocks shouldered much of the impact resulting from the burst of the technology bubble more than two years ago. Additionally, a number of high-profile corporate accounting and reporting issues have left investor confidence in disarray and a number of former blue-chip stocks deep in the red. How are you navigating these choppy waters for shareholders? We continue to look for companies across economic sectors that exhibit strong fundamentals and offer reasonable valuations relative to other securities in their respective economic sectors. In the technology sector, we are investing in defensively positioned companies with good earnings prospects, such as services and select software names. In health care, we are reviewing our over-weights in the biotechnology industry, due to recent earnings disappointments. In the consumer sector, we are investing in steady growth companies until there is more evidence of an industrial production recovery. Were there any bright spots worth noting? Relative to the index, the Fund's consumer non-durables and semiconductor holdings outperformed. In the semiconductor industry, the Fund's performance benefited from our avoidance of certain poorly performing issues. Has the market hit bottom, or are the bears still leading the fall? There may never have been a better bull and bear debate than what exists today. The bears say that valuations still are too high, corporate profits are not rising fast enough, accounting scandals may persist, and geopolitical risk remains high. The bulls point to a recovering economy, record-low interest rates and an active consumer as evidence of a pending market upturn. Of course, we don't know which side ultimately will prevail over the next quarter or two, but what we do know is that stocks are on track for their third straight losing year, media headlines are dreary, and bear markets are the most frightening when they approach their bottom. We believe that we are very close to reaching the end of this bear market. We encourage shareholders to stay the course, because long-term investors often reap significant rewards.
Top 10 Holdings* 1. General Electric Company................ 5.8% 2. Microsoft Corporation............ 5.4% 3. Pfizer, Inc............ 4.7% 4. Wal-Mart Stores, Inc.................... 3.3% 5. Johnson & Johnson...... 2.7% 6. Intel, Corp............ 2.6% 7. Cisco Systems, Inc..... 2.3% 8. Home Depot, Inc........ 2.1% 9. Coca-Cola Company...... 2.1% 10. Philip Morris Co., Inc.................... 1.6%
Portfolio Allocation* Common Stock.............. 97.7% Cash Equivalents.......... 2.3%
Top 5 Industries* 1. Health Care............ 24.4% 2. Technology............. 20.4% 3. Retail................. 13.4% 4. Financial Services..... 9.9% 5. Consumer Non-Durable... 9.2%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Large Cap Growth Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 13 [GRAPH] Report Value of $10,000 Investment Class I Russell 1000 Growth 6/92 10000 10000 6/93 11393 10902 6/94 12309 10873 6/95 14998 14191 6/96 17602 18137 6/97 23431 23822 6/98 31807 31300 6/99 40963 39833 6/00 47230 50056 6/01 31379 31949 6/02 22599 23486
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -27.98% -28.17% -31.93% -28.73% -32.30% -28.69% -29.41% ------------------------------------------------------------------------------------------------- 5 year -0.72% -0.98% -2.04% -1.70% -1.96% -1.68% -1.68% ------------------------------------------------------------------------------------------------- 10 year 8.49% 8.25% 7.67% 7.45% 7.45% 7.46% 7.46% ------------------------------------------------------------------------------------------------- Since Inception 8.12% 7.87% 7.31% 7.08% 7.08% 7.08% 7.08% ------------------------------------------------------------------------------------------------- Inception Date 2/28/92 2/28/92 2/28/92 2/28/92 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (2/22/94), Class B (1/14/94) and Class C (11/4/97), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The performance of the Large Cap Growth Fund is measured against the Russell 1000 Growth Index, an unmanaged index generally representative of the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 14 Report One Group Large Cap Value Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Kathy Dodd, managing director of the equity value team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? For the one-year period ended June 30, 2002, the Fund's I share class posted a total return of -19.53%. (For information on other share classes, see page 15.) From a relative perspective, what does this return mean for shareholders? The Fund underperformed its benchmark index, the S&P 500/BARRA Value Index, which posted a total return of -18.09% for the fiscal year (see inside the back cover for details). The market was extremely volatile during the year, with industry leadership changing rapidly according to economic, market and industry-specific developments. Although we are disappointed with the Fund's return, we hope our investors understand that this was an unusual and extreme year. We believe our investment process may be best suited for outperformance over the long term and hope that our shareholders understand the difficulties inherent in the market now. Just as the euphoric market performance of the late 1990s was not sustainable, this negative environment also is unlikely to persist. Did the Fund's capitalization focus influence performance? The "market-capitalization" effect, or the fact that we focus on large companies with market capitalizations of $5 billion or more, was a negative influence on the Fund's short-term performance. Since 2000 the market has favored small- capitalization stocks over their large-cap peers. In addition, waning investor confidence in recent months played a significant role in the market's continued downturn. Investors already were concerned about additional terrorist attacks, when news of accounting irregularities and fraud at a few high-profile companies emerged. Together, these factors rattled investor confidence and led to market declines. Given this challenging market, what were your key strategies? Our key strategy is to remain loyal to the Fund's stated style objective--that is, to invest in large-cap stocks with strong value characteristics--regardless of market cycles. As such, we continued to implement our bottom-up process of analyzing and selecting stocks on a company-by-company basis. Our sector managers determine the expected earnings growth of their companies, and we compare this growth across industries and sectors. Did this analysis help you to identify any industries as bright spots in the market? We focused on industries hedged against the cyclical swings in the market. For example, we over-weighted the defense industry, due to its robust earnings growth and our belief that such growth will persist. We also overweighted the non-durables industry, which remains a large beneficiary of continued strength in consumer spending. What about other industries with a more cyclical nature? Of course, not all industries possess characteristics that shield them from market cycles. For example, the anticipated rebound in the advertising industry -- typically an early-cycle event and one toward which the Fund was positioned -- has been slow to materialize. Also, the earnings calculation method most investors use to determine the valuations of these companies has come under scrutiny, leading to stock declines in this sector. Looking ahead, what do you think is in store for the market? Despite the relatively good economic news, including near record-low interest rates and inflation, positive GDP (gross domestic product) growth, and a modest earnings rebound in the manufacturing sectors, corporate credibility remains an overriding issue. Legislative changes designed to restore investor confidence already are in process, but the market may continue to move down until the credibility issues are resolved or stock values become exceptionally tempting. At that time, given the improving economic fundamentals, we would expect the market to rebound and resume a positive growth rate.
Top 10 Holdings* 1. Exxon-Mobil Corporation............ 6.2% 2. Citigroup, Inc......... 4.4% 3. American Int'l Group... 3.8% 4. Royal Dutch Petroleum.............. 2.9% 5. Bank of America Corporation............ 2.9% 6. Wells Fargo & Company................ 2.3% 7. SBC Communications, Inc.................... 2.2% 8. J.P. Morgan Chase & Company................ 2.1% 9. Verizon Communications......... 2.1% 10. Viacom Inc............. 1.8%
Portfolio Allocation* Common Stock.............. 97.8% Cash Equivalents.......... 2.2%
Top 5 Industries* 1. Financial Services..... 30.9% 2. Energy................. 14.8% 3. Utilities.............. 12.6% 4. Technology............. 8.3% 5. Consumer Services...... 7.2%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Large Cap Value Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 15 [GRAPH] Report Value of $10,000 Investment Class I S&P 500/BARRA Value 6/92 10000 10000 6/93 10673 11849 6/94 10843 12216 6/95 13382 14820 6/96 15082 18495 6/97 19170 24208 6/98 23288 30289 6/99 27307 35299 6/00 25766 33495 6/01 27710 36148 6/02 22298 29608
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -19.53% -19.74% -23.94% -20.32% -24.26% -20.35% -21.14% ------------------------------------------------------------------------------------------------- 5 year 3.07% 2.85% 1.75% 2.06% 1.75% 2.08% 2.08% ------------------------------------------------------------------------------------------------- 10 year 8.35% 8.15% 7.57% 7.47% 7.47% 7.47% 7.47% ------------------------------------------------------------------------------------------------- Since Inception 8.85% 8.63% 8.12% 7.95% 7.95% 7.95% 7.95% ------------------------------------------------------------------------------------------------- Inception Date 3/1/91 3/1/91 3/1/91 3/1/91 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (2/18/92), Class B (1/14/94) and Class C (3/22/99), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The performance of the Large Cap Value Fund is measured against the S&P 500/BARRA Value Index, an unmanaged index representing the performance of the lowest price to book securities in the S&P 500. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 16 Report One Group Equity Income Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Lynn Yturri, member of the equity balanced team; Mike Weiner, CFA and managing director of the equity balanced team and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return for the year? The Fund's I share class posted a total return of -9.64% for the one-year period ended June 30, 2002. (For information on other share classes, see page 17.) Compared to the broad market, how did the Fund perform for shareholders? The stock market was weak, reflecting an uncertain financial and global-geopolitical environment. Furthermore, a series of negative company specific news developments and a declining stock market undermined investor and business confidence. With this challenging backdrop, our high level of diversification and attention to valuation helped minimize the damage to the Fund. In addition, the Fund benefited from owning financially strong, dividend-paying stocks that typically carry a lower risk profile than the overall stock market. These factors helped the Fund outperform its peer group average and to significantly outperform its benchmark, the S&P 500 Index, which posted a total return of -17.99% for the fiscal year. (See inside the back cover for details on performance comparisons to peer group and benchmark indexes.) Did the climate prompt you to implement any new strategies? Our basic strategy remained intact -- that is, to build a portfolio that consists of what we believe is the best combination of securities offering reasonable current income and appreciation potential. But, developments over the past year caused a change in outlook for many industries and growth expectations, which, in turn, caused us to make some adjustments. For example, we enhanced the Fund's level of current income by increasing exposure to higher-yield investments. We also took advantage of weak stock prices to eliminate several holdings and switch into companies we believe are better valued and have greater growth prospects. Were any sectors more or less attractive than others? In general, the best performance came from smaller-capitalization stocks, as investors continued to move away from many of the largest growth-oriented companies that dominated the 1990s bull market. A variety of industry sectors performed well, including consumer non-durables, commodities, retail, capital equipment and banks, but notable performance was more stock-specific than industry-specific. Poor performance was concentrated in high-profile, larger-cap issues that suffered from an interruption of growth rates or negative news developments -- factors that led to heavy selling and sharp price declines. In particular, technology and telecommunications stocks performed poorly as earnings continued to decline. The health care sector also lagged, due to political pressures, patent expirations and new product delays. What is your market outlook, and how will you position the Fund for shareholders? Many of the known problems within the stock market already have been exposed, and the market is into its cleansing process. Looking ahead, we expect an improving breadth of companies reporting growth, more evidence of a global economic recovery and better earnings comparisons with prior-year results. This may generate better news and higher stock market returns over the next year. We believe income-oriented equity funds such as ours should be well positioned to deal with an uncertain environment in the near term and to participate when the financial markets work through the current challenges.
Top 10 Holdings* 1. Exxon-Mobil Corporation.............. 4.6% 2. General Electric Company.................. 4.1% 3. Pfizer, Inc. ............ 3.3% 4. Wal-Mart Stores, Inc. ... 3.1% 5. Citigroup, Inc. ......... 2.9% 6. Bank of America Corporation.............. 2.2% 7. Royal Dutch Petroleum.... 2.2% 8. Coca-Cola Company........ 2.2% 9. Wells-Fargo & Company.... 2.1% 10. Fannie Mae............... 1.9%
Portfolio Allocation* Common Stock................ 95.1% Convertible Bonds........... 2.6% Preferred Stock............. 1.4% Cash Equivalents............ 0.9%
Top 5 Industries* 1. Financial Services....... 20.1% 2. Health Care.............. 12.8% 3. Consumer Non-Durable..... 10.6% 4. Energy................... 9.0% 5. Capital Goods............ 8.0%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Equity Income Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 17 [GRAPH] Report Value of $10,000 Investment Class I S&P 500 6/92 10000 10000 6/93 11156 11363 6/94 11521 11523 6/95 13946 14527 6/96 17367 18304 6/97 22733 24655 6/98 28002 32092 6/99 31162 39395 6/00 28564 42251 6/01 29782 35983 6/02 26912 29510
Average Annual Total Return as of June 30, 2002
----------------------------------------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ----------------------------------------------------------------------------------------------------------------------------------- 1 year -9.64% -9.89% -14.61% -10.57% -14.78% -10.52% -11.36% ----------------------------------------------------------------------------------------------------------------------------------- 5 year 3.43% 3.15% 2.05% 2.41% 2.14% 2.45% 2.45% ----------------------------------------------------------------------------------------------------------------------------------- 10 year 10.41% 10.12% 9.52% 9.35% 9.35% 9.37% 9.37% ----------------------------------------------------------------------------------------------------------------------------------- Since Inception 9.78% 9.47% 9.07% 8.72% 8.72% 8.74% 8.74% ----------------------------------------------------------------------------------------------------------------------------------- Inception Date 7/2/87 7/2/87 7/2/87 7/2/87 -----------------------------------------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (2/18/92), Class B (1/14/94) and Class C (11/4/97), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The performance of the Equity Income Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the performance of large companies in the U.S. stock market. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 18 Report One Group Diversified Equity Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Mike Weiner, CFA and managing director of the equity balanced team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -18.61% for the year ended June 30, 2002. (For information on other share classes, see page 19.) In this challenging period for stocks, how did the Fund compare to the averages? The Fund's total return slightly surpassed that of the peer group average and lagged that of the benchmark, the S&P 1500 Index, which posted a total return of -16.50% (see inside the back cover for details). Unfortunately, we owned some of last year's disappointing holdings and not enough of its winners when examining short-term performance. Nevertheless, we believe the Fund is well positioned for long-term growth. What led to the market's decline? The market had to deal with many troubling and unprecedented issues over the last year, including the September 11, 2001, terrorist attacks, additional terrorist threats, economic recession, and corporate financial scandals. In addition, dealing with the burst of the technology bubble at the peak of an 8-year bull market remains one of the largest contributors to ongoing market volatility. Our strategy of investing in multiple equity styles is designed to reap rewards over the long term, but over the near term most equity styles may continue to struggle as the market works through a host of challenges. What were some of the strategies you implemented to deal with the market climate? We invested in various investing themes and styles. We added companies to the portfolio that we felt were well positioned to benefit in a period of economic recovery; attractively priced technology companies with decent business models and companies poised to deliver sustainable, steady earnings at a good price. Did any market sectors offer notable performance? As a group, the Fund's electric and telephone utilities performed well, mostly because we avoided several underperforming names in this sector. We also added value in our communications technology holdings by avoiding some of that sectors worst performers and software holdings by staying with some proven leaders. On the other hand, although we didn't own Enron, and none of the Fund's energy holdings were accused of any wrongdoing, "guilt by association" drove down the energy sector as a whole. Corporate credibility issues also influenced our holdings in the consumer sector, primarily in the advertising and entertainment areas. What is your outlook, and how will you position the Fund going forward? We expect to reach an earnings trough before the end of the third quarter of 2002, with a gradual recovery emerging in most market sectors. Valuations for most sectors are neither rich nor cheap, so the market likely will rely on earnings growth as a barometer. We will keep the portfolio diversified and exposed to large-, mid- and small-cap stocks and value- and growth-oriented issues.
Top 10 Holdings* 1. Exxon-Mobil Corporation............ 4.0% 2. Microsoft Corporation............ 3.4% 3. Citigroup, Inc......... 3.1% 4. Pfizer, Inc............ 3.0% 5. General Electric Company................ 2.7% 6. Wal-Mart Stores, Inc.................... 2.5% 7. American Int'l Group... 2.4% 8. Coca-Cola Company...... 2.1% 9. Freddie Mac............ 2.0% 10. Philip Morris Co., Inc.................... 1.7%
Portfolio Allocation* Common Stock.............. 96.9% Cash Equivalents.......... 3.1%
Top 5 Industries* 1. Financial Services..... 19.2% 2. Health Care............ 13.3% 3. Technology............. 12.5% 4. Consumer Non-Durable... 8.9% 5. Retail................. 7.1%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Diversified Equity Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 19 [GRAPH] Report Value of $10,000 Investment Class A S&P 500 S&P SuperComposite 1500 Index 6/92 10000 10000 10000 6/93 11959 11363 11363 6/94 11937 11523 11523 6/95 13898 14527 14466 6/96 16815 18304 18144 6/97 22118 24655 24123 6/98 29187 32092 31226 6/99 35128 39395 37891 6/00 36874 42251 40963 6/01 32257 35983 35733 6/02 26169 29510 29836 Class A* 6/92 9475 6/93 11331 6/94 11311 6/95 13169 6/96 15933 6/97 20957 6/98 27656 6/99 33285 6/00 34940 6/01 30565 6/02 24796
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -18.61% -18.87% -23.16% -19.49% -23.50% -19.51% -20.31% ------------------------------------------------------------------------------------------------- 5 year 3.69% 3.42% 2.31% 2.65% 2.34% 2.71% 2.71% ------------------------------------------------------------------------------------------------- 10 year 10.28% 10.10% 9.51% 9.31% 9.31% 9.35% 9.35% ------------------------------------------------------------------------------------------------- Since Inception 11.01% 10.86% 10.39% 10.06% 10.06% 10.08% 10.08% ------------------------------------------------------------------------------------------------- Inception Date 12/29/89 12/29/89 12/29/89 12/29/89 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class I (3/26/96), Class B (9/9/94) and Class C (11/4/97), performance is based on Class A share performance adjusted to reflect the deduction of fees and expenses including the absence of a sales charge in the case of Class I shares. The above-quoted performance data includes the performance of the Paragon Value Equity Income Fund for the period before it was acquired by the One Group Diversified Equity Fund on March 26, 1996. Prior to March 26, 1996 performance for the Class I shares is based on Class A share performance adjusted to reflect the absence of sales charges. The performance of the Diversified Equity Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the performance of large companies in the U.S. stock market. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. The S&P SuperComposite 1500 Index represents the performance of large and small companies in the U.S. stock market. The S&P SuperComposite 1500 Index consists of the average monthly returns of the S&P 500 Index for periods prior to January 1995. Thereafter, the data is from the S&P SuperComposite 1500 Index, which corresponds with the initiation of the S&P SuperComposite 1500 Index on January 1, 1995. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 20 Report One Group Balanced Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Scott Grimshaw, member of the taxable bond team; Mike Weiner, CFA and managing director of the equity balanced team; Rick Jandrain, chief investment officer of equity securities and Gary Madich, CFA and chief investment officer of fixed income securities. What was the Fund's total return? The Fund's I share class posted a total return of -9.05% for the 12-month period ended June 30, 2002. (For information on other share classes, see page 21.) How did this performance compare to other balanced funds? The Fund slightly underperformed its peer group average (see inside the back cover for details). This resulted primarily from the stock portfolio portion of the Fund, which comprised 60% of the Fund's assets. The stock market had to deal with many troubling and unprecedented issues over the last year, including terrorism, economic recession, and corporate accounting abuses. In addition, dealing with the burst of the technology bubble at the peak of an 8-year bull market remains one of the largest contributors to ongoing market volatility. What were your key strategies in the equity portfolio? Our goal was to keep the equity portion of the portfolio well diversified in various equity styles, themes and time horizons and to own companies which we expected to benefit from a recovering economy. As such, we focused on technology companies with decent business models and attractive stock prices. We also added select companies positioned to deliver sustainable, steady earnings at a good price and companies working hard to improve their fortunes. How did you position the bond portfolio? The bond market continued to benefit from a slow economy, low interest rates and investor skepticism for the stock market. Because of these concerns, we under-weighted corporate securities, which lagged other higher-quality bond sectors. We focused on mortgage- and asset-backed securities, which provided total return and yield advantages for shareholders. We also maintained a slightly longer-than-average duration (sensitivity to interest rate changes), which was a positive influence on performance in the declining rate environment. (When interest rates decline, funds with longer durations experience greater price appreciation.) What is your outlook, and how will you position the Fund going forward? We expect to maintain our target asset allocation of 60% stocks and 40% bonds. We believe the market may reach an earnings trough before the end of the third quarter of 2002, with a gradual recovery emerging in most market sectors. We will keep the stock portfolio diversified and exposed to large-, mid- and small-cap stocks and value- and growth-oriented issues. We don't expect the bond market environment to change dramatically. Corporate bonds likely will face continued volatility, so we expect to remain focused on high-quality mortgage-backed securities and maintaining broad portfolio diversification.
Portfolio Allocation* Common Stock.............. 58.3% Government Agencies....... 18.0% Corporate Bonds........... 13.6% U.S. Treasuries........... 6.6% Asset-Backed Securities... 3.0% Cash Equivalents.......... 0.5%
Top 5 Equity Industries* 1. Financial Services..... 11.5% 2. Health Care............ 8.0% 3. Technology............. 7.5% 4. Consumer Non-Durable... 5.3% 5. Utilities.............. 4.0%
Top 5 Fixed Income Sectors* 1. Corporate Bonds........ 13.8% 2. Federal National Mortgage Association... 7.6% 3. Federal Home Loan Mortgage............... 5.0% 4. U.S. Treasury Bonds.... 4.4% 5. Asset-Backed Securities............. 3.7%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Balanced Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 21 [GRAPH] Report Value of $10,000 Investment Class I S&P 500 4/93 10000 10000 6/93 10129 10049 6/94 10027 10190 6/95 11636 12847 6/96 13356 16187 6/97 16048 21803 6/98 19597 28380 6/99 22094 34838 6/00 23363 37364 6/01 22518 31821 6/02 20480 26096 Lipper Balanced Fund Index 4/93 10000 6/93 10205 6/94 10288 6/95 11883 6/96 13644 6/97 16458 6/98 19488 6/99 21737 6/00 22700 6/01 22461 6/02 20768
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -9.05% -9.20% -13.98% -9.92% -14.35% -9.88% -10.77% ------------------------------------------------------------------------------------------------- 5 year 5.00% 4.72% 3.60% 3.95% 3.64% 3.97% 3.97% ------------------------------------------------------------------------------------------------- Since Inception 8.06% 7.79% 7.17% 7.00% 7.00% 7.00% 7.00% ------------------------------------------------------------------------------------------------- Inception Date 4/2/93 4/2/93 4/2/93 4/2/93 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class B (1/14/94) and Class C (5/30/00), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. Performance for the Class C shares is based on Class I share performance adjusted to reflect the difference in expense ratios and sales charges. The performance of the Balanced Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the performance of large companies in the U.S. stock market. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. The Lipper Balanced Fund Index is a blended index consisting of both stocks and bonds with a typical stock to bond ratio of around 60% to 40%. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 22 Report One Group Equity Index Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Bala Iyer, Ph.D. and CFA, managing director of the equity quantitative team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -18.24% for the fiscal year ended June 30, 2002. (For information on other share classes, see page 23.) How did the Fund's return compare to the S&P 500's return? As it is designed to do, the Fund offered a total return similar to that of the S&P 500 Index, the unmanaged group of stocks the Fund seeks to track with little or no excess risk. The S&P 500 Index returned -17.99% for the year (see inside the back cover for details). How do you track the index's performance? We strictly follow the benchmark positions and weights and stay fully invested. We also take advantage of securities lending and trade execution by our selected broker via program trading to help offset some of the costs associated with running an index fund. Which market sectors offered notable performance? Health services and consumer non-durable stocks performed well, because their non-cyclical character helped them post earnings increases. Telephone utilities and communications technology stocks posted the worst relative returns, due to low capital spending and weak demand. Looking ahead, what do you expect from the stock market and for the Fund? We plan to keep the Fund fully invested as we seek to track the composition and performance of the S&P 500 Index. Our research indicates that price/earnings multiples no longer strongly favor mid- and small-cap stocks over large-cap stocks. As such, we believe returns from large-cap stocks may improve over the next 12-month period.
Top 10 Holdings* 1. Microsoft Corporation............ 3.2% 2. General Electric Company................ 3.1% 3. Exxon-Mobil Corporation............ 3.0% 4. Wal-Mart Stores, Inc.................... 2.7% 5. Pfizer, Inc............ 2.4% 6. Citigroup, Inc......... 2.2% 7. American Int'l Group... 1.9% 8. Johnson & Johnson...... 1.7% 9. Coca-Cola Company...... 1.5% 10. IBM Corporation........ 1.3%
Portfolio Allocation* Common Stock.............. 98.6% Cash Equivalents.......... 1.4%
Top 5 Industries* 1. Financial Services..... 19.3% 2. Technology............. 14.4% 3. Health Care............ 13.6% 4. Consumer Non-Durable... 9.8% 5. Energy................. 7.6%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Equity Index Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 23 [GRAPH] Report Value of $10,000 Investment Class I S&P 500 6/92 10000 10000 6/93 11304 11363 6/94 11376 11523 6/95 14310 14527 6/96 17955 18304 6/97 24113 24655 6/98 31289 32092 6/99 38330 39395 6/00 40961 42251 6/01 34796 35983 6/02 28448 29510
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -18.24% -18.46% -22.74% -19.07% -23.11% -19.06% -19.87% ------------------------------------------------------------------------------------------------- 5 year 3.36% 3.10% 1.99% 2.34% 1.97% 2.39% 2.39% ------------------------------------------------------------------------------------------------- 10 year 11.02% 10.75% 10.15% 9.96% 9.96% 9.99% 9.99% ------------------------------------------------------------------------------------------------- Since Inception 11.12% 10.85% 10.30% 10.06% 10.06% 10.09% 10.09% ------------------------------------------------------------------------------------------------- Inception Date 7/2/91 7/2/91 7/2/91 7/2/91 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (2/18/92), Class B (1/14/94) and Class C (11/4/97), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. The performance of the Equity Index Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the performance of large companies in the U.S. stock market. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 24 Report One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Bala Iyer, Ph.D. and CFA, managing director of the equity quantitative team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -1.78% for the 12-month period ended June 30, 2002. (For information on other share classes, see page 25.) What does this return mean for shareholders? In a period characterized by earnings downgrades, contraction of price/earnings multiples and double-digit negative returns for many stock market indexes, the Fund generated relatively attractive performance. The small- and mid-cap universes continued to fare better than the large-cap arena. But it was our stock-selection strategies that helped the Fund outperform its market benchmark, the S&P 1000 Index (total return -3.19%; see inside the back cover for details). What were your stock-selection strategies? We avoided making sector or industry bets in favor of taking small bets on individual stocks. We used a balanced, quantitative stock-selection process that kept our overall portfolio performance and risk exposure within targeted benchmark guidelines. Which stocks offered notable performance for shareholders? Stocks in the consumer non-durables sector performed extremely well because of their non-cyclical nature. In addition, real estate investment trust (REIT) holdings offered strong performance, due to their rich dividend yield and focus on cash flow. Stocks in the telephone utilities, Internet and semiconductor industries offered the worst relative performance during the year. Telecommunications-related stocks continued to suffer from weak final demand, while stagnant capital spending plagued the technology-related sectors. What do you think is in store for small- and mid-cap stocks? We remain hopeful that returns will improve in the next 12 months, and we plan to keep the Fund fully invested. We expect the small- and mid-cap arena to perform slightly better than large-cap stocks. Nevertheless, it's likely to be a low-return environment, underscoring the value of effective stock selection strategies.
Top 10 Holdings* 1. Electronic Arts, Inc. ... 0.7% 2. Gilead Sciences, Inc. ... 0.7% 3. Tyson Foods, Inc. ....... 0.7% 4. Quest Diagnostics, Inc. .................... 0.6% 5. Microchip Technology, Inc. .................... 0.6% 6. Greenpoint Financial Corp. ................... 0.6% 7. RJ Reynolds Tobacco...... 0.6% 8. Golden State Bancorp..... 0.6% 9. Cadence Design System, Inc. .................... 0.5% 10. M & T Bank Corp. ........ 0.5%
Portfolio Allocation* Common Stock................ 97.1% Cash Equivalents............ 2.0% Unit Investment Trust....... 0.9%
Top 5 Industries* 1. Financial Services....... 16.2% 2. Technology............... 13.1% 3. Health Care.............. 11.9% 4. Retail................... 8.3% 5. Business Equipment & Services................. 6.5%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 25 [GRAPH] Report Value of $10,000 Investment Class I S&P MidCap 400 S&P SmallCap 600 S&P 1000 7/98 10000 10000 10000 10000 6/99 11490 12191 10578 11157 6/00 13134 14261 12100 12981 6/01 14295 15526 13445 14208 6/02 14040 14794 13482 13754
Average Annual Total Return as of June 30, 2002
----------------------------------------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ----------------------------------------------------------------------------------------------------------------------------------- 1 year -1.78% -2.11% -7.26% -2.75% -7.59% -2.69% -3.66% ----------------------------------------------------------------------------------------------------------------------------------- Since Inception 9.05% 8.75% 7.27% 8.34% 7.82% 7.93% 7.93% ----------------------------------------------------------------------------------------------------------------------------------- Inception Date 7/31/98 7/31/98 7/31/98 7/31/98 -----------------------------------------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class C (3/22/98), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. Effective March 31, 2002 the performance of the Market Expansion Index Fund is measured against the S&P 1000 Index, an unmanaged index which combines the already widely followed S&P MidCap 400 and S&P SmallCap 600 Indices and is generally representative of the performance of the small and mid-size companies in the U.S. stock market. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. The S&P MidCap 400 Index is an unmanaged index generally representative of the mid-cap stock market. The S&P SmallCap 600 Index is an unmanaged index generally representative of the small companies stock market. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 26 Report One Group Technology Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Steve Salopek and Walter Casey, members of the equity growth team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -39.42% for the year ended June 30, 2002. (For information on other share classes, see page 27.) Was there any comfort for technology investors in this difficult market? A barrage of factors combined to increase the risk premium investors applied to the technology sector, leading to strong underperformance for the fiscal year. Fallout from the September 11, 2001, terrorist attacks; concerns over a slowing economy, credit downgrades and corporate governance issues; and problems related to the outlook for technology spending and, consequently, the growth and profitability of technology vendors weighed heavily on the sector. Although the Fund was down significantly for the year, shareholders may find a bit of comfort in knowing that our stock-selection process enabled us to limit the losses somewhat. We maintained a relatively conservative posture in the Fund, which helped us outperform the benchmark and peer group average (see inside the back cover for details). How did your stock-selection process help? We emphasized high-quality names with strong balance sheets. Given the sector's increased risk premium, we also were sensitive to valuation. These strategies helped us avoid the stocks plagued with the most serious negative earnings revisions during the period. At the same time, these efforts helped the Fund perform relatively well in the important sub-sectors of the Fund, including communications technology, software, semiconductors, hardware and services. In addition, we emphasized well-capitalized market leaders. Is the environment for technology stocks likely to improve? We expect the technology sector to remain challenging over the near term, as the market works off the excesses of the 1990s. In time, though, the ongoing advances in price performance likely will spawn new applications, and technology may once again be a growth engine for investors. When that happens, we expect the Fund to participate nicely. Until then, our emphasis on quality should be a positive influence on relative performance.
Top 10 Holdings* 1. Microsoft Corporation............ 9.8% 2. Intel Corporation...... 7.9% 3. IBM Corporation........ 7.8% 4. Cisco Systems, Inc..... 6.9% 5. Dell Computer Corporation............ 4.6% 6. AOL Time Warner........ 4.4% 7. Oracle Corporation..... 3.4% 8. Texas Instruments, Inc.................... 3.1% 9. Hewlett Packard Co..... 3.1% 10. Automatic Data Processing............. 2.4%
Portfolio Allocation* Common Stock.............. 96.7% Cash Equivalents.......... 3.3%
Top 5 Industries* 1. Communications Tech & Software............... 30.9% 2. Hardware & Services.... 25.7% 3. Semiconductors......... 22.2% 4. Business Equipment & Services............... 7.5% 5. Technology............. 6.6%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Technology Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 27 [GRAPH] Report Value of $10,000 Investment Class I Goldman Sachs Technology Index 7/00 10000 10000 6/01 5910 5127 6/02 3580 2954
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -39.42% -39.56% -42.77% -40.00% -43.00% -39.93% -40.53% ------------------------------------------------------------------------------------------------- Since Inception -41.38% -41.55% -43.16% -41.98% -41.98% -41.89% -41.89% ------------------------------------------------------------------------------------------------- Inception Date 7/28/00 7/28/00 7/28/00 7/28/00 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. The performance of the Technology Fund is measured against the Goldman Sachs Technology Index, a capitalization-weighted index generally representative of the performance of securities covered in the technology sector. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. The Fund's value and it's returns may be considerably more volatile and pose greater risks due to the nature of the technology sector (short product cycles, price competition, obsolescence of existing technology) than the values and returns of other mutual funds invested in a broader range of industries and companies. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 28 Report One Group Health Sciences Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Karen Grunst, CFA and Bihag Patel, members of the equity growth team, and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? The Fund's I share class posted a total return of -23.92% for the one-year period ended June 30, 2002. (For information on other share classes, see page 29.) How does the Fund's return compare to the health sciences sector as a whole? The Fund outperformed its peer group average, but it significantly underperformed its market benchmark, the Goldman Sachs Health Care Index (total return of -18.85%), primarily due to the Fund's biotechnology overweight and major pharmaceuticals underweight. In the 12-month period, pharmaceuticals outperformed biotech stocks by approximately 20%. (See inside the back cover for index and peer group comparison details.) Why did you focus on biotech stocks? While the benchmark index and many of our peers are invested heavily in defensive services industries, we stick to our stated objectives of investing primarily in research-and-development-driven companies. Many such companies are in the biotechnology industry. Although this strategy hasn't been successful in producing immediate results in this difficult market environment, we believe it may pay off over the long run. Do you expect the climate for health sciences stocks to improve in the months ahead? We expect health care companies to report solid earnings results relative to other market segments in the months ahead. We anticipate robust new-product flow, particularly from the biotech companies we own. Although the Food and Drug Administration has been slow to approve new drugs, the agency is starting to improve its turnaround times. On the political front, we don't expect a Medicare prescription drug plan to become law until after the 2002 elections. Ultimately, we expect a prescription drug plan to be part of a larger Medicare reform package. From a long-term perspective, we believe demographics trends will continue to drive robust demand for health care products that save lives and improve quality of life.
Top 10 Holdings* 1. Pfizer, Inc............ 10.0% 2. Eli Lilly & Company.... 6.5% 3. Wyeth.................. 6.4% 4. Medtronic Inc.......... 6.0% 5. Pharmacia Corporation............ 5.5% 6. Amgen, Inc............. 5.3% 7. Allergan, Inc.......... 4.5% 8. Baxter International, Inc.................... 4.5% 9. HCA The Healthcare Company................ 3.8% 10. Medimmune, Inc......... 3.8%
Portfolio Allocation* Common Stock............... 98.0% Cash Equivalents........... 2.0%
Top 5 Sectors* 1. Major Pharmaceuticals... 36.6% 2. Biotech Mature.......... 18.4% 3. Medical Device.......... 14.9% 4. Specialty Pharma........ 8.9% 5. Providers............... 7.3%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Health Sciences Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 29 [GRAPH] Report Value of $10,000 Investment Class I Goldman Sachs Healthcare Index 3/01 10000 10000 6/01 11710 10374 6/02 8909 8616
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 Year -23.92% -24.19% -28.18% -24.90% -28.64% -24.92% -25.67% ------------------------------------------------------------------------------------------------- Since Inception -8.68% -9.01% -12.76% -9.74% -12.58% -9.82% -9.82% ------------------------------------------------------------------------------------------------- Inception Date 3/23/01 3/23/01 3/23/01 3/23/01 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. The performance of the Health Sciences Fund is measured against the Goldman Sachs Healthcare Index, an unmanaged index measuring the performance of large- and mid-sized companies in the following sectors: Major/Specialty Pharmaceuticals, Biotechnology, Medical Technology and Health Services. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries and companies. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 30 Report One Group International Equity Index Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Chris Gheen, member of the international team; Clyde Carter, Jr., managing director of the international team and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return? For the year ended June 30, 2002, the Fund's I share class posted a total return of -11.55%. (For information on other share classes, see page 31.) How did the Fund's return compare to that of its benchmark index? The Morgan Stanley Capital International (MSCI) EAFE-GDP Index posted a total return of -10.51% for the year (see inside the back cover for details). How would you describe the climate for international stocks? Volatility was the norm for international stocks during the fiscal year. In the first half of the year, investors anticipated a slowdown in global economic growth, primarily due to higher oil prices, rising labor costs, weak currencies, and new uncertainties generated from the September 11, 2001, terrorist attacks against the United States. Between October 2001 and April 2002, investors sensed an improvement in the global economic growth prospects. But since May, investors have struggled with reductions in corporate earnings expectations, few indications of a rebound in global capital spending and ongoing concerns about terrorism. On the bright side, the U.S. dollar finally began to soften, which improves returns for U.S. investors in international funds. Did you focus your holdings on any particular areas? With the developed markets comprising close to 90% of the international stock market capitalization, countries such as Japan, Germany, the United Kingdom and France had the largest exposure in the Fund. What's your outlook for international stocks? Over time, we expect market volatility to subside as investors regain their confidence in stocks and focus on the positive influences at work in the market. For example, the global economic recovery is still on track, the U.S. dollar has weakened and equity valuations once again are attractive in several markets. We also expect inflation to remain under control, which should allow central banks to move into action gradually, as cyclical pressures develop slowly over the coming year.
Top 10 Holdings* 1. Total Fina Elf S.A. ... 1.7% 2. Docomo Inc. ........... 1.6% 3. Eni SPA ............... 1.5% 4. Siemens AG ............ 1.3% 5. Toyota Motor Corporation ........... 1.3% 6. Daimler Benz .......... 1.1% 7. BP PLC ................ 1.1% 8. Sony Corporation ...... 1.0% 9. Deutsche Bank AG ...... 1.0% 10. E.ON AG ............... 0.9%
Portfolio Allocation* Common Stock.............. 98.1% Closed-End Mutual Fund.... 1.3% Preferred Stock........... 0.6%
Top 5 Countries* 1. Japan.................. 28.5% 2. Germany................ 10.6% 3. France................. 8.6% 4. United Kingdom......... 8.4% 5. Italy.................. 6.9%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group International Equity Index Fund -------------------------------------------------------------------------------- Portfolio Performance Review ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 31 [GRAPH] Report Value of $10,000 Investment Class I MSCI EAFE-GDP 10/92 10000 10000 6/93 11812 12189 6/94 13636 14456 6/95 14209 14984 6/96 15801 16864 6/97 18114 19284 6/98 19842 22204 6/99 22080 24388 6/00 26073 29206 6/01 19615 22157 6/02 17349 19828
Average Annual Total Return as of June 30, 2002
----------------------------------------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ----------------------------------------------------------------------------------------------------------------------------------- 1 year -11.55% -11.79% -16.42% -12.39% -16.76% -12.43% -12.30% ----------------------------------------------------------------------------------------------------------------------------------- 5 year -0.86% -1.12% -2.18% -1.83% -2.18% -1.69% -1.69% ----------------------------------------------------------------------------------------------------------------------------------- Since Inception 5.86% 5.60% 5.02% 4.79% 4.79% 4.87% 4.87% ----------------------------------------------------------------------------------------------------------------------------------- Inception Date 10/28/92 10/28/92 10/28/92 10/28/92 -----------------------------------------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class A (4/23/93), Class B (1/14/94) and Class C (11/4/97), performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. International investing involves increased risk and volatility. The performance of the International Equity Index Fund is measured against the Morgan Stanley Capital International (MSCI) EAFE-GDP Index(1), an unmanaged index generally representative of the performance of international stock markets. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ------------ (1) Gross Domestic Product (GDP) Weighted Morgan Stanley Capital International Europe, Australasia and Far East Index. MSCI EAFE-GDP Index is a registered service mark of Morgan Stanley Capital International, which does not sponsor and is in no way affiliated with the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 32 Report One Group Diversified International Fund -------------------------------------------------------------------------------- Portfolio Performance Review From an interview with Banc One Investment Advisors Corporation's Chris Gheen, member of the international team; Clyde Carter, Jr., managing director of the international team and Rick Jandrain, chief investment officer of equity securities. What was the Fund's total return for the year? The Fund's I share class posted a total return of -8.75% for the 12-month period ended June 30, 2002. The Fund underperformed its benchmark, the Morgan Stanley Capital International (MSCI) EAFE+EMF Index (total return -8.12%) but it outperformed the peer group average. (For information on other share classes, see page 33, for performance comparisons to the Fund's benchmark and peer group, see inside the back cover.) What key factors influenced international stock markets? International markets remained volatile during the fiscal year. During the first half of the year, investors anticipated a slowdown in global economic growth, primarily due to prior central bank responses to higher oil prices, rising labor costs, weak currencies, and new uncertainties generated from the September 11, 2001, terrorist attacks against the United States. Market sentiment improved from October 2001 through April 2002, as investors sensed an improvement in global economic growth prospects. Since May, though, investors have struggled with reductions in corporate earnings expectations, few indications of a rebound in global capital spending and the ongoing concerns about terrorism. On the bright side, the U.S. dollar finally began to soften, which may improve returns for U.S. investors in international funds. What were your strategies during this volatile time? In October 2001 we positioned the Fund to benefit from an expected improvement in the global economy and attractive valuations. This involved over-weighting emerging and cyclical markets, including Korea, Taiwan, Indonesia, New Zealand, Malaysia and Thailand. The Fund's performance benefited from this strategy, as well as our overweight of Norway and under-weightings in Germany, Japan, the Philippines and Turkey. In the final three months of the fiscal year, we reduced the Fund's exposure to the Asian emerging markets, due to previous strong performance, a decline in investor confidence and our belief that equity prices had appreciated ahead of fundamentals. What can international investors look forward to as time goes on? As time goes on, we expect market volatility to diminish as investors regain their confidence in stocks and focus on the positive influences in the market. For example, the global economic recovery is still on track, the U.S. dollar has weakened and equity valuations once again are attractive in several markets. We also expect inflation to remain under control, which should allow central banks to move into action gradually, as cyclical pressures develop slowly over the coming year.
Top 10 Holdings* 1. Nokia Corp ADR......... 1.2% 2. East Japan Railway..... 1.0% 3. Nokia OYJ.............. 1.0% 4. UBS AG................. 0.8% 5. Korea Electric Power KRW.................... 0.7% 6. Vodafone Group PLC ADR.................... 0.7% 7. ABB LTD................ 0.7% 8. Kookmin Bank........... 0.7% 9. Koram Bank KRW......... 0.7% 10. Novartis AG............ 0.6%
Portfolio Allocation* Common Stock.............. 97.0% Cash Equivalents.......... 1.6% Closed-End Mutual Fund.... 0.8% Unit Investment Trust..... 0.4% Preferred Stock........... 0.2%
Top 5 Countries* 1. Japan.................. 17.8% 2. United Kingdom......... 8.7% 3. Sweden................. 5.1% 4. France................. 4.5% 5. Switzerland............ 4.2%
-------------------------------------------------------------------------------- * As of June 30, 2002. The Fund's composition is subject to change. One Group Diversified International Fund -------------------------------------------------------------------------------- Portfolio Performance Review, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 33 [GRAPH] Report Value of $10,000 Investment Class I MSCI EAFE + EMF 6/92 10000 10000 6/93 10714 12053 6/94 12352 14265 6/95 12968 14485 6/96 14389 16373 6/97 16300 18588 6/98 17486 18808 6/99 19468 20665 6/00 23551 24102 6/01 17633 18344 6/02 16091 16855
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 2002
------------------------------------------------------------------------------------------------- Class I Class A Class A* Class B Class B* Class C Class C* ------------------------------------------------------------------------------------------------- 1 year -8.75% -8.96% -13.76% -9.65% -14.14% -9.69% -10.58% ------------------------------------------------------------------------------------------------- 5 year -0.26% -0.48% -1.54% -1.17% -1.55% -1.18% -1.18% ------------------------------------------------------------------------------------------------- 10 year 4.87% 4.62% 4.07% 3.91% 3.91% 3.91% 3.91% ------------------------------------------------------------------------------------------------- Since Inception 6.56% 6.26% 5.91% 5.56% 5.56% 5.56% 5.56% ------------------------------------------------------------------------------------------------- Inception Date 4/30/86 4/30/86 4/30/86 4/30/86 -------------------------------------------------------------------------------------------------
* Reflects Applicable Sales Charge or Contingent Deferred Sales Charge. The performance data quoted represents past performance and is not an indication of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and NAV will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The total return set forth may reflect the waiver of a portion of the fund's fees for certain periods since the inception date, without the waiver, total return would have been lower. Prior to the inception of Class C (3/22/99) performance is based on Class I share performance adjusted to reflect the deduction of fees and expenses. International investing involves increased risk and volatility. The Diversified International Fund commenced operations as the Pegasus International Equity Fund on December 3, 1994 subsequent to the transfer of assets from a common trust fund with materially equivalent investment objectives, policies, guidelines and restrictions as the Fund. The quoted performance of the Fund includes the performance of the common trust fund for periods prior to the Fund's commencement of operations as adjusted to reflect the expenses and sales charges associated with the Fund. Common trust funds are not registered under the Investment Company Act of 1940 ("1940 Act") and, therefore, are not subject to certain investment restrictions, limitations and diversification requirements imposed by the 1940 Act and the Internal Revenue Code. If the common trust fund had been registered under the 1940 Act, its performance may have been adversely affected. The above quoted performance data includes the performance of a common trust fund and the Pegasus International Equity Fund prior to the acquisition by the One Group Diversified International Fund on March 22, 1999. The performance of the Diversified International Fund is measured against the Morgan Stanley Capital International (MSCI) EAFE + EMF Index, an unmanaged index generally representative of the performance of international stock markets and of emerging markets. Investors are unable to purchase the index directly, although they can invest in the underlying securities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of these services as well as the deduction of sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. Please refer to the prospectus and the accompanying financial statements for more information about the Fund. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 34 Report One Group Small Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks (97.9%): Business Equipment & Services (10.2%): 125 ABM Industries, Inc. .............. $ 2,170 118 Administaff, Inc. (b) ............. 1,180 89 Advanced Marketing Services, Inc. ............................ 1,623 50 Advo, Inc. (b) .................... 1,904 100 Armor Holdings, Inc. (b) .......... 2,553 41 Concord Communications, Inc. (b) ............................. 674 28 Cuno, Inc. (b) .................... 995 163 Dendrite International, Inc. (b) ............................. 1,578 128 Factset Research Systems, Inc. .... 3,819 65 Fair Issac & Co., Inc. ............ 2,128 55 G & K Services, Inc., Class A ..... 1,883 129 Global Payments, Inc. ............. 3,829 151 Insight Enterprises, Inc. (b) ..... 3,799 114 John H. Harland Co. ............... 3,209 20 New England Business Services ..... 503 59 Prepaid Legal Services, Inc. (b) ............................. 1,180 174 PRG-Schultz International, Inc. (b) ............................. 2,142 40 QRS Corp. (b) ..................... 312 20 Shuffle Master, Inc. (b) .......... 369 70 Startek, Inc. (b) ................. 1,877 111 Varian Semiconductor Equipment Assoc., Inc. (b) ................ 3,770 102 Zebra Technologies Corp., Class A (b) ............................. 4,937 -------- 46,434 -------- Capital Goods (6.5%): 112 Advanced Energy Industries, Inc. (b) ............................. 2,473 51 Clarcor, Inc. ..................... 1,611 94 Cymer, Inc. (b) ................... 3,294 56 Elcor Corp. ....................... 1,537 144 Graco, Inc. ....................... 3,615 98 Helix Technology Corp. ............ 2,023 38 IDEX Corp. ........................ 1,273 41 Insituform Technologies, Inc. (b) ............................. 858 65 Intermagnetics General Corp. (b) ............................. 1,309 63 Manitowoc Co., Inc. ............... 2,222 41 Metro One Telecommunications, Inc. (b) ............................. 577 40 Oshkosh Truck Corp. ............... 2,364 61 Roper Industries, Inc. ............ 2,275 15 Simpson Manufacturing Co., Inc. (b) ............................. 857 136 Technitrol, Inc. .................. 3,162 -------- 29,450 -------- Consumer Durable (5.6%): 113 Arbitron, Inc. (b) ................ 3,529 32 Arctic Cat, Inc. .................. 556 31 AstroPower, Inc. (b) .............. 599 331 Axcelis Technologies, Inc. (b) .... 3,736 26 Carbo Ceramics, Inc. .............. 942 149 Corinthian Colleges, Inc. (b) ..... 5,053
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Consumer Durable, continued: 87 Harman International Industries, Inc. ............................ $ 4,260 57 Monaco Coach Corp. (b) ............ 1,213 59 Polaris Industries, Inc. .......... 3,829 38 Winnebago Industries, Inc. ........ 1,650 -------- 25,367 -------- Consumer Non-Durable (5.4%): 20 American Italian Pasta Co., Class A (b) ............................. 1,035 49 AptarGroup, Inc. .................. 1,501 120 Crown Cork & Seal Co., Inc. (b) ... 823 55 Fossil, Inc. (b) .................. 1,121 173 ITT Educational Services, Inc. (b) ............................. 3,771 73 K Swiss, Inc. ..................... 1,902 120 La-Z-Boy Chair Co. ................ 3,026 204 NBTY, Inc. (b) .................... 3,152 126 Pacific Sunwear of California, Inc. (b) ............................. 2,802 83 Performance Food Group Co. (b) .... 2,810 21 United Natural Foods, Inc. (b) .... 402 103 Wet Seal, Inc., Class A (b) ....... 2,498 -------- 24,843 -------- Consumer Services (2.4%): 76 Action Performance Cos., Inc. (b) ............................. 2,404 37 Argosy Gaming Co. (b) ............. 1,042 89 Kroll, Inc. (b) ................... 1,874 63 Midway Games, Inc. (b) ............ 533 90 On Assignment, Inc. (b) ........... 1,595 61 SCP Pool Corp. (b) ................ 1,698 59 THQ, Inc. (b) ..................... 1,759 -------- 10,905 -------- Energy (3.3%): 107 Cal Dive International, Inc. (b) ............................. 2,343 58 Oceaneering International, Inc. (b) ............................. 1,566 53 Patina Oil & Gas Corp. ............ 1,454 135 Power Integrations, Inc. (b) ...... 2,422 58 Remington Oil & Gas Corp. (b) ..... 1,149 291 XTO Energy, Inc. .................. 5,994 -------- 14,928 -------- Financial Services (7.5%): 48 Barra, Inc. (b) ................... 1,770 51 Boston Private Financial Holdings, Inc. ............................ 1,252 80 Community First Bankshares, Inc. ............................ 2,090 60 Cullen/Frost Bankers, Inc. ........ 2,157 63 Dime Community Bancshares ......... 1,429 57 East-West Bancorp, Inc. ........... 1,968 41 Financial Federal Corp. (b) ....... 1,357 65 First BanCorp ..................... 2,451 114 First Midwest Bancorp, Inc. ....... 3,166
Continued One Group Small Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 35 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Financial Services, continued: 96 Hilb, Rogal & Hamilton Co. ........ $ 4,352 133 Hudson United Bancorp ............. 3,804 61 Southwest Bancorp of Texas (b) .... 2,195 38 Sterling Bancshares, Inc. ......... 567 127 TrustCo Bank Corp. ................ 1,677 48 UCBH Holdings, Inc. ............... 1,809 68 United Bankshares, Inc. ........... 1,995 -------- 34,039 -------- Health Care (18.8%): 16 Accredo Health, Inc. (b) .......... 754 41 Biosite, Inc. (b) ................. 1,140 141 Cephalon, Inc. (b) ................ 6,382 49 Cooper Cos., Inc. ................. 2,298 144 Coventry Health Care, Inc. (b) .... 4,092 51 Cryolife, Inc. (b) ................ 826 67 Diagnostic Products Corp. ......... 2,472 37 DIANON Systems, Inc. (b) .......... 1,982 63 Enzo Biochem, Inc. (b) ............ 905 50 Haemonetics Corp. (b) ............. 1,454 160 Hooper Holmes, Inc. ............... 1,282 19 ICU Medical, Inc. (b) ............. 587 130 IDEXX Laboratories, Inc. (b) ...... 3,355 61 Impath, Inc. (b) .................. 1,086 91 Inamed Corp. (b) .................. 2,429 74 Invacare Corp. .................... 2,720 117 Medicis Pharmaceuticals, Inc. (b) ............................. 5,020 99 Mentor Corp. ...................... 3,623 59 MGI Pharma, Inc. (b) .............. 415 116 Mid Atlantic Medical Services, Inc. (b) ............................. 3,621 119 NDCHealth Corp. ................... 3,315 114 Noven Pharmaceuticals, Inc. (b) ... 2,894 148 Orthodontic Centers of America, Inc. (b) ........................ 3,400 107 Owens & Minor, Inc. ............... 2,104 144 Pharmaceutical Product Development, Inc. (b) ........................ 3,804 31 PolyMedica Corp. (b) .............. 792 107 Priority Healthcare Corp., Class B (b) ............................. 2,503 160 Province Healthcare Co. (b) ....... 3,587 44 Regeneron Pharmaceuticals, Inc. (b) ............................. 634 121 Renal Care Group, Inc. (b) ........ 3,754 90 Resmed, Inc. (b) .................. 2,643 63 Respironics, Inc. (b) ............. 2,149 131 Sierra Health Services, Inc. (b) ............................. 2,935 20 Surmodics, Inc. (b) ............... 520 92 Sybron Dental Specialties, Inc. (b) ............................. 1,702 61 Syncor International Corp. (b) .... 1,922 26 Vital Signs, Inc. ................. 940 -------- 86,041 --------
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Raw Materials (3.0%): 47 Cambrex Corp. ..................... $ 1,873 101 Georgia Gulf Corp. ................ 2,668 142 Harmonic Lightwaves, Inc. (b) ..... 520 60 Macdermid, Inc. ................... 1,290 42 Scotts Co., Class A (b) ........... 1,902 144 Techne Corp. (b) .................. 4,064 42 WD-40 Co. ......................... 1,155 -------- 13,472 -------- Retail (13.6%): 166 Applebee's International, Inc. .... 3,814 58 CEC Entertainment, Inc. (b) ....... 2,375 88 Chico's FAS, Inc. (b) ............. 3,206 56 Christopher & Banks Corp. (b) ..... 2,350 57 Cost Plus, Inc. (b) ............... 1,748 70 Delta & Pine Land Co. ............. 1,401 75 Ethan Allen Interiors, Inc. ....... 2,610 66 Fred's, Inc. ...................... 2,416 70 Genesco, Inc. (b) ................. 1,705 117 Gymboree Corp. (b) ................ 1,878 72 Hancock Fabrics, Inc. ............. 1,332 80 Hot Topic, Inc. (b) ............... 2,134 86 Jack in the Box, Inc. (b) ......... 2,732 78 Linens 'N Things, Inc. (b) ........ 2,559 112 O'Reilly Automotive, Inc. (b) ..... 3,073 79 P.F. Chang's China Bistro, Inc. (b) ............................. 2,485 78 Panera Bread Co. (b) .............. 2,696 244 Pier 1 Imports, Inc. .............. 5,121 164 Regis Corp. ....................... 4,419 139 Ruby Tuesday, Inc. ................ 2,697 50 Ryan's Family Steakhouses, Inc. (b) ............................. 661 134 Sonic Corp. (b) ................... 4,199 56 The Children's Place Retail Stores, Inc. (b) ........................ 1,479 32 The Steak n Shake Co. (b) ......... 501 86 Too, Inc. (b) ..................... 2,646 -------- 62,237 -------- Shelter (2.1%): 36 Essex Property Trust, Inc. ........ 1,975 19 NVR, Inc. (b) ..................... 6,266 17 Thor Industries, Inc. ............. 1,211 -------- 9,452 -------- Technology (16.3%): 94 Actel Corp. (b) ................... 1,976 129 Aeroflex, Inc. (b) ................ 895 80 Alliant Techsystems, Inc. (b) ..... 5,096 43 ANSYS, Inc. (b) ................... 872 119 ATMI, Inc. (b) .................... 2,662 46 BE Aerospace, Inc. (b) ............ 606 69 BEI Technologies, Inc. ............ 785
Continued One Group Small Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 36 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Technology, continued: x57 CACI International, Inc., Class A (b) ............................. $ 2,192 82 Catapult Communications Corp. (b) ............................. 1,787 108 Cerner Corp. (b) .................. 5,181 157 Cognex Corp. (b) .................. 3,142 26 Cohu, Inc. ........................ 449 66 Dionex Corp. (b) .................. 1,763 58 DRS Technologies, Inc. (b) ........ 2,497 47 EDO Corp. ......................... 1,348 156 ESS Technology, Inc. (b) .......... 2,729 119 Filenet Corp. (b) ................. 1,727 37 FLIR Systems, Inc. (b) ............ 1,557 56 Hyperion Solutions Corp. (b) ...... 1,021 129 Inter-Tel, Inc. ................... 2,200 95 Itron, Inc. (b) ................... 2,492 39 Keithley Instruments, Inc. ........ 556 169 Kopin Corp. (b) ................... 1,112 56 Kronos, Inc. (b) .................. 1,701 182 Kulicke & Soffa Industries, Inc. (b) ............................. 2,255 91 Manhattan Associates, Inc. (b) .... 2,920 80 Mercury Computer Systems, Inc. (b) ............................. 1,664 92 Micros Systems, Inc. (b) .......... 2,549 133 MRO Software, Inc. (b) ............ 1,509 80 Phoenix Technologies Ltd. (b) ..... 800 62 Photon Dynamics, Inc. (b) ......... 1,866 143 Pinnacle Systems, Inc. (b) ........ 1,571 37 Planar Systems, Inc. (b) .......... 716 166 Progress Software Corp. (b) ....... 2,453 71 Radiant Systems, Inc. (b) ......... 921 33 Rogers Corp. (b) .................. 888 103 Roxio, Inc. (b) ................... 739 60 Rudolph Technologies, Inc. (b) .... 1,501 68 SERENA Software, Inc. (b) ......... 931
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Technology, continued: 90 Take-Two Interactive Software, Inc. (b) ............................. $ 1,853 78 Teledyne Technologies, Inc. (b) ... 1,623 127 Trimble Navigation Ltd. (b) ....... 1,973 -------- 75,078 -------- Transportation (2.1%): 100 Atlantic Coast Airlines, Inc. (b) ............................. 2,163 42 Forward Air Corp. (b) ............. 1,377 60 Frontier Airlines, Inc. (b) ....... 491 135 Heartland Express, Inc. (b) ....... 3,239 21 Landstar System, Inc. (b) ......... 2,222 17 Mesa Air Group, Inc. (b) .......... 152 -------- 9,644 -------- Utilities (1.1%): 79 Frontier Oil Corp. ................ 1,382 123 Philadelphia Suburban Corp. ....... 2,480 39 UGI Corp. ......................... 1,249 -------- 5,111 -------- Total Common Stocks 447,001 -------- Warrants (0.0%): Aerospace & Defense (0.0%): $ 4 Orbital Sciences Corp. ............ 16 -------- Total Warrants 16 -------- Investment Companies (0.8%): 3,570 One Group Prime Money Market, Class I ............................... 3,570 -------- Total Investment Companies 3,570 -------- Total (Cost $424,178)(a) $450,587 ========
------------ Percentages indicated are based on net assets of $456,439. (a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of the losses recognized for financial reporting purposes in excess of federal income tax reporting. Cost for federal income tax purposes differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 70,929 Unrealized depreciation...................... (34,554) -------- Net unrealized appreciation (depreciation)... $ 36,375 ========
(b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 37 Report One Group Small Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks (94.1%): Business Equipment & Services (5.6%): 526 AAR Corp. ........................ $ 5,370 90 Angelica Corp. ................... 1,551 342 Applied Industrial Technologies, Inc. ........................... 6,672 49 Banta Corp. ...................... 1,768 183 Bowne & Co., Inc. ................ 2,691 147 CDI Corp. (b) .................... 4,782 129 Cornell Cos., Inc. (b) ........... 1,529 138 G & K Services, Inc., Class A .... 4,708 128 Kelly Services, Inc., Class A .... 3,452 206 Paxar Corp. (b) .................. 3,454 18 Tennant Co. ...................... 713 224 Unifirst Corp. ................... 5,679 152 Wackenhut Corrections Corp. (b) ............................ 2,220 -------- 44,589 -------- Capital Goods (7.5%): 136 Briggs & Stratton Corp. .......... 5,218 291 Bush Industries, Inc. ............ 3,490 144 Butler Manufacturing Co. ......... 3,964 250 CompX International, Inc. ........ 3,314 265 Cummins, Inc. .................... 8,786 210 HON Industries, Inc. ............. 5,722 26 Lawson Products, Inc. ............ 813 24 Lincoln Electric Holdings, Inc. ........................... 648 57 Nacco Industries, Inc., Class A .............................. 3,300 54 SPS Technologies, Inc. (b) ....... 2,076 59 Stewart & Stevenson Services, Inc. ........................... 1,044 89 Tecumseh Products Co. ............ 4,719 488 Trinity Industries, Inc. ......... 10,110 67 Watts Industries, Inc., Class A .............................. 1,329 138 York International Corp. ......... 4,673 -------- 59,206 -------- Consumer Durable (5.7%): 60 Apogee Enterprises, Inc. ......... 860 70 Arctic Cat, Inc. ................. 1,223 283 Arvinmeritor, Inc. ............... 6,785 124 Bassett Furniture Industries, Inc. ........................... 2,414 225 Brunswick Corp. .................. 6,286 98 Coachmen Industries, Inc. ........ 1,427 403 Dana Corp. ....................... 7,462 228 Interface, Inc. .................. 1,834 350 Intermet Corp. ................... 3,758 89 Myers Industries, Inc. ........... 1,532 137 National R.V. Holdings, Inc. (b) ............................ 1,371 221 Oneida Ltd. ...................... 4,230 158 Snap-On, Inc. .................... 4,704 88 Watsco, Inc. ..................... 1,606 -------- 45,492 -------- Consumer Non-Durable (2.1%): 116 American Greetings Corp., Class A .............................. 1,927 61 Interstate Bakeries Corp. ........ 1,766 270 Russell Corp. .................... 5,192 265 United Stationers, Inc. (b) ...... 8,070 -------- 16,955 --------
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Energy (4.7%): 242 Ashland Co., Inc. ................ $ 9,804 116 Comstock Resources, Inc. (b) ..... 878 33 Helmerich & Payne, Inc. .......... 1,193 208 Maverick Tube Corp. (b) .......... 3,116 53 Newfield Exploration Co. (b) ..... 1,970 165 Ocean Energy, Inc. ............... 3,585 119 Offshore Logistics, Inc. (b) ..... 2,833 219 Parker Drilling Co. (b) .......... 717 141 Petroleum Development Corp. (b) ............................ 834 158 Premcor, Inc. (b) ................ 4,069 533 Pride International, Inc. (b) .... 8,350 -------- 37,349 -------- Financial Services (19.6%): 121 1st Source Corp. ................. 2,988 82 A.G. Edwards, Inc. ............... 3,180 34 Affiliated Managers Group, Inc. (b) ............................ 2,060 108 Alfa Corp. ....................... 1,261 153 Allmerica Financial Corp. ........ 7,050 39 American Financial Group, Inc. ... 932 230 Associated Banc-Corp. ............ 8,662 62 BancTrust Financial Group, Inc. ........................... 749 52 City National Corp. .............. 2,811 86 Colonial BancGroup, Inc. ......... 1,284 119 Commerce Bancshares, Inc. ........ 5,264 44 Commerce Group, Inc. ............. 1,756 55 Community Bank System, Inc. ...... 1,783 50 Community First Bankshares, Inc. ........................... 1,299 135 Compass Bancshares, Inc. ......... 4,526 178 Countrywide Credit Industries, Inc. ........................... 8,600 75 FBL Financial Group, Inc., Class A .............................. 1,659 66 Fidelity National Financial, Inc. ........................... 2,097 286 First American Financial Corp. ... 6,572 157 First Commonwealth Financial Corp. .......................... 2,121 292 FirstMerit Corp. ................. 8,063 206 GATX Corp. ....................... 6,190 175 GBC Bancorp California ........... 5,078 352 Horace Mann Educators Corp. ...... 6,580 77 Humboldt Bancorp ................. 1,301 64 LandAmerica Financial Group, Inc. ........................... 2,026 80 Mercantile Bank Corp. (b) ........ 1,612 34 Mercantile Bankshares Corp. ...... 1,399 151 Nationwide Financial Services, Inc., Class A .................. 5,965 91 North Valley Bancorp ............. 1,470 3 Old National Bancorp ............. 79 87 Old Republic International Corp. .......................... 2,736 157 PXRE Group Ltd. .................. 3,644 75 Raymond James Financial, Inc. .... 2,140 63 Reinsurance Group of America, Inc. ........................... 1,945 77 Selective Insurance Group, Inc. ........................... 2,168 254 Silicon Valley Bankshares (b) .... 6,695 12 Simmons First National Corp., Class A ........................ 517 241 Sovereign Bancorp, Inc. .......... 3,608 129 State Auto Financial Corp. ....... 2,121 27 Stifel Financial Corp. ........... 335
Continued One Group Small Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 38 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Financial Services, continued: 125 Susquehanna Bancshares, Inc. ..... $ 2,827 36 Triad Guaranty, Inc. (b) ......... 1,558 34 UMB Financial Corp. .............. 1,592 83 Universal American Financial Corp. (b) ............................ 559 167 Washington Federal, Inc. ......... 4,221 78 Washington Trust Bancorp, Inc. ... 1,853 91 Webster Financial Corp. .......... 3,486 106 WesBanco, Inc. ................... 2,521 118 Whitney Holding Corp. ............ 3,629 -------- 154,572 -------- Health Care (4.0%): 340 Health Net, Inc. (b) ............. 9,109 142 Humana, Inc. (b) ................. 2,216 66 IDEXX Laboratories, Inc. (b) ..... 1,707 423 Maxim Pharmaceuticals, Inc. (b) ............................ 1,365 131 PacifiCare Health Systems, Inc. (b) ............................ 3,551 57 Perrigo Co. (b) .................. 742 282 Rehabcare Group, Inc. (b) ........ 6,770 196 Staar Surgical Co. (b) ........... 807 206 Theragenics Corp. (b) ............ 1,738 126 West Pharmaceutical Services, Inc. ........................... 4,049 -------- 32,054 -------- Raw Materials (9.4%): 280 AMCOL International Corp. ........ 1,916 102 Applied Extrusion Technology, Inc. (b) ............................ 706 315 Brush Engineered Materials, Inc. ........................... 3,901 224 Centex Construction Products, Inc. ........................... 8,160 278 Chase Industries, Inc. (b) ....... 3,859 64 H.B. Fuller Co. .................. 1,877 198 Harsco Corp. ..................... 7,423 79 Hawkins, Inc. .................... 739 195 Lafarge Corp. .................... 6,861 140 Mueller Industries, Inc. (b) ..... 4,451 451 Olin Corp. ....................... 9,990 95 Rock-Tenn Co., Class A ........... 1,738 155 Ryerson Tull, Inc. ............... 1,797 61 Steel Technologies, Inc. ......... 809 74 Stepan Co. ....................... 2,084 93 Temple-Inland, Inc. .............. 5,372 92 Texas Industries, Inc. ........... 2,907 388 Unifi, Inc. (b) .................. 4,226 48 Universal Forest Products, Inc. ........................... 1,117 99 Wellman, Inc. .................... 1,666 416 Wolverine Tube, Inc. (b) ......... 3,142 -------- 74,741 -------- Real Estate Investment Trust (5.2%): 80 Boykin Lodging Co. ............... 869 104 Brandywine Realty Trust .......... 2,701 48 Colonial Properties Trust ........ 1,870 108 Developers Diversified Realty Corp. .......................... 2,435 538 Felcor Lodging Trust, Inc. ....... 9,872 79 First Industrial Realty Trust .... 2,608 198 Great Lakes REIT, Inc. ........... 3,767 158 Highwoods Properties, Inc. ....... 4,098
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Real Estate Investment Trust, continued: 143 Post Properties, Inc. ............ $ 4,298 47 Prentiss Properties Trust ........ 1,505 135 Summit Properties, Inc. .......... 3,158 155 Thornburg Mortgage, Inc. ......... 3,044 48 United Dominion Realty Trust, Inc. ........................... 750 -------- 40,975 -------- Retail (8.9%): 123 Bob Evans Farms, Inc. ............ 3,877 192 Bon-Ton Stores, Inc. (b) ......... 900 323 Borders Group, Inc. (b) .......... 5,936 196 Brookstone, Inc. (b) ............. 3,483 254 Casey's General Stores, Inc. ..... 3,054 58 CBRL Group, Inc. ................. 1,770 37 Claire's Stores, Inc. ............ 838 102 Dress Barn, Inc. (b) ............. 1,571 272 Footstar, Inc. (b) ............... 6,656 212 Kellwood Co. ..................... 6,879 118 Men's Wearhouse, Inc. (b) ........ 3,008 294 Nautica Enterprises, Inc. (b) .... 3,823 58 O'Charleys, Inc. (b) ............. 1,462 323 REX Stores Corp. (b) ............. 4,455 108 Ruddick Corp. .................... 1,823 100 Shopko Stores, Inc. (b) .......... 2,011 195 Stein Mart, Inc. (b) ............. 2,309 225 The Steak n Shake Co. (b) ........ 3,515 162 Tommy Hilfiger Corp. (b) ......... 2,320 194 Vans, Inc. (b) ................... 1,579 85 Wilsons The Leather Experts, Inc. (b) ............................ 1,187 222 Zale Corp. (b) ................... 8,029 -------- 70,485 -------- Shelter (0.9%): 184 Clayton Homes, Inc. .............. 2,914 204 Fleetwood Enterprises, Inc. ...... 1,775 58 Palm Harbor Homes, Inc. (b) ...... 1,159 151 Patrick Industries, Inc. ......... 1,309 -------- 7,157 -------- Technology (10.8%): 133 Actel Corp. (b) .................. 2,793 265 Adaptec, Inc. (b) ................ 2,090 66 Adtran, Inc. (b) ................. 1,260 225 Advanced Fibre Communication, Inc. (b) ............................ 3,725 103 Agile Software Corp. (b) ......... 746 120 Alliance Semiconductor Corp. (b) ............................ 851 240 American Power Conversion Corp. (b) ............................ 3,032 23 Analogic Corp. ................... 1,127 487 Ascential Software Corp. (b) ..... 1,359 119 Asyst Technologies, Inc. (b) ..... 2,423 109 Audiovox Corp., Class A (b) ...... 868 127 Autodesk, Inc. ................... 1,687 281 Braun Consulting, Inc. (b) ....... 979 126 Cognex Corp. (b) ................. 2,527 158 Coherent, Inc. (b) ............... 4,656
Continued One Group Small Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 39 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Technology, continued: 42 Cohu, Inc. ....................... $ 733 253 Credence Systems Corp. (b) ....... 4,500 127 Cree Research, Inc. (b) .......... 1,686 189 CTS Corp. ........................ 2,270 332 Cyberoptics Corp. (b) ............ 3,187 61 Dupont Photomasks, Inc. (b) ...... 1,975 205 Electroglas, Inc. (b) ............ 2,051 124 Electronics for Imaging, Inc. (b) ............................ 1,979 44 Exar Corp. (b) ................... 861 77 Filenet Corp. (b) ................ 1,122 117 Hyperion Solutions Corp. (b) ..... 2,132 209 Interphase Corp. (b) ............. 730 319 Kulicke & Soffa Industries, Inc. (b) ............................ 3,954 107 Lam Research Corp. (b) ........... 1,923 282 Lattice Semiconductor Corp. (b) ............................ 2,467 263 MasTec, Inc. (b) ................. 1,935 77 McData Corp. (b) ................. 684 52 MTS Systems Corp. ................ 658 369 Optimal Robotics Corp. (b) ....... 2,689 50 Park Electrochemical Corp. ....... 1,336 296 Parlex Corp. (b) ................. 3,579 300 Pioneer-Standard Electronics, Inc. ........................... 3,121 174 QuickLogic Corp. (b) ............. 631 225 Ultratech Stepper, Inc. (b) ...... 3,646 110 Veeco Instruments, Inc. (b) ...... 2,537 215 X-Rite, Inc. ..................... 1,847 -------- 84,356 -------- Transportation (5.7%): 102 Airborne, Inc. ................... 1,955 160 Alaska Air Group, Inc. (b) ....... 4,185 87 Alexander & Baldwin, Inc. ........ 2,221 226 CNF, Inc. ........................ 8,580 131 Midwest Express Holdings, Inc. (b) ............................ 1,732 262 Overseas Shipholding Group, Inc. ........................... 5,532 177 Ryder Systems, Inc. .............. 4,807 175 Teekay Shipping Corp. ............ 6,456 156 US Freightways Corp. ............. 5,896 117 Yellow Corp. (b) ................. 3,776 -------- 45,140 --------
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Utilities (4.0%): 79 Alliant Energy Corp. ............. $ 2,023 312 Aquila, Inc. ..................... 2,497 68 Cascade Natural Gas Corp. ........ 1,421 35 Cleco Corp. ...................... 768 40 Hawaiian Electric Industries, Inc. ........................... 1,683 21 Lufkin Industries, Inc. .......... 609 96 MDU Resources Group, Inc. ........ 2,524 59 New Jersey Resources Corp. ....... 1,758 191 Northwest Natural Gas Co. ........ 5,498 20 Oneok, Inc. ...................... 434 171 PNM Resources, Inc. .............. 4,135 17 UIL Holdings Corp. ............... 920 85 Vectren Corp. .................... 2,128 219 Wisconsin Energy Corp. ........... 5,534 -------- 31,932 -------- Total Common Stocks 745,003 -------- Warrants (0.0%): Aerospace & Defense (0.0%): $ 4 Orbital Sciences Corp. ........... 18 -------- Total Warrants 18 -------- Repurchase Agreements (2.0%): 15,504 State Street Bank and Trust, 1.55%, 7/1/02 (Proceeds at maturity $15,506, collateralized by various U.S. Government securities) .................... 15,504 -------- Total Repurchase Agreements 15,504 -------- Investment Companies (5.1%): 70 iShares Russell 2000 Value ....... 9,513 31,038 One Group Prime Money Market, Class I ........................ 31,038 -------- Total Investment Companies 40,551 -------- Total (Cost $711,944)(a) $801,076 ========
------------ Percentages indicated are based on net assets of $791,546. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $120,724 Unrealized depreciation...................... (31,592) -------- Net unrealized appreciation (depreciation)... $ 89,132 ========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 40 Report One Group Mid Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks (96.3%): Business Equipment & Services (11.7%): 294 Acxiom Corp. (b) ............... $ 5,137 715 Affiliated Computer Services, Inc., Class A (b) ............ 33,926 259 Catalina Marketing Corp. (b) ... 7,307 526 ChoicePoint, Inc. (b) .......... 23,924 173 CSG Systems International, Inc. (b) .......................... 3,304 508 DST Systems, Inc. (b) .......... 23,241 200 Education Management Corp. (b) .......................... 8,142 67 Fiserv, Inc. (b) ............... 2,463 310 Herman Miller, Inc. ............ 6,289 227 Jack Henry & Assoc., Inc. ...... 3,781 463 Jacobs Engineering Group, Inc. (b) .......................... 16,093 494 Manpower, Inc. ................. 18,160 369 Reynolds & Reynolds Co., Class A ............................ 10,307 369 Sotheby's Holdings, Inc., Class A (b) ........................ 5,256 1,508 SunGard Data Systems, Inc. (b) .......................... 39,922 223 Viad Corp. ..................... 5,786 438 Weatherford International Ltd. (b) .......................... 18,927 ---------- 231,965 ---------- Capital Goods (5.4%): 206 Cooper Cameron Corp. (b) ....... 9,976 551 Diebold, Inc. .................. 20,529 226 Fastenal Co. ................... 8,684 501 Flowserve Corp. (b) ............ 14,932 432 Hubbell, Inc., Class B ......... 14,750 192 SPX Corp. (b) .................. 22,523 275 Teleflex, Inc. ................. 15,724 ---------- 107,118 ---------- Consumer Durable (1.6%): 428 Copart, Inc. (b) ............... 6,946 325 Gentex Corp. (b) ............... 8,926 534 Sonoco Products Co. ............ 15,110 ---------- 30,982 ---------- Consumer Non-Durable (5.1%): 934 Dial Corp. ..................... 18,697 623 Energizer Holdings, Inc. (b) ... 17,079 686 Hormel Foods Corp. ............. 16,414 1,248 McCormick & Co., Inc. .......... 32,124 74 Payless Shoesource, Inc. (b) ... 4,291 165 Timberland Co., Class A (b) .... 5,893 180 Tootsie Roll Industries ........ 6,950 ---------- 101,448 ---------- Consumer Services (6.4%): 190 Coach, Inc. (b) ................ 10,422 354 Dun & Bradstreet Corp. (b) ..... 11,706 291 Entercom Communications Corp. (b) .......................... 13,346 276 GTECH Holdings Corp. (b) ....... 7,053 328 Harte-Hanks, Inc. .............. 6,740
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Consumer Services, continued: 199 International Speedway Corp., Class A ...................... $ 7,971 498 Reader's Digest Association, Inc., Class A ................ 9,334 242 Scholastic Corp. (b) ........... 9,181 252 Valassis Communications, Inc. (b) .......................... 9,187 40 Washington Post Co. ............ 21,718 573 Westwood One, Inc. (b) ......... 19,166 ---------- 125,824 ---------- Energy (3.8%): 441 DPL, Inc. ...................... 11,660 519 ENSCO International, Inc. ...... 14,148 242 Equitable Resources, Inc. ...... 8,300 414 Grant Prideco, Inc. (b) ........ 5,635 178 Murphy Oil Corp. ............... 14,719 298 Patterson-UTI Energy, Inc. (b) .......................... 8,426 189 Smith International, Inc. (b) .......................... 12,881 ---------- 75,769 ---------- Financial Services (11.9%): 305 Arthur J. Gallagher & Co. ...... 10,559 378 Certegy, Inc. (b) .............. 14,012 230 Commerce Bancorp, Inc. ......... 10,171 303 Eaton Vance Corp. .............. 9,460 214 Greater Bay Bancorp ............ 6,586 546 GreenPoint Financial Corp. ..... 26,809 474 Investors Financial Services Corp. ........................ 15,882 384 Legg Mason, Inc. ............... 18,922 345 Neuberger Berman, Inc. ......... 12,611 291 New York Community Bancorp ..... 7,875 975 North Fork Bancorp, Inc. ....... 38,801 552 SEI Investments Co. ............ 15,541 495 TCF Financial Corp. ............ 24,328 291 Waddell & Reed Financial, Inc., Class A ...................... 6,676 147 Westamerica Bancorp ............ 5,828 87 Willis Group Holdings Ltd. (b) .......................... 2,861 260 Wilmington Trust Corp. ......... 7,936 ---------- 234,858 ---------- Health Care (20.5%): 144 Anthem, Inc. (b) ............... 9,692 517 Apogent Technologies, Inc. (b) .......................... 10,629 181 Barr Laboratories, Inc. (b) .... 11,517 408 Beckman Coulter, Inc. .......... 20,336 208 Covance, Inc. (b) .............. 3,905 574 Cytyc Corp. (b) ................ 4,377 484 Dentsply International, Inc. ... 17,870 285 Edwards Lifesciences Corp. (b) .......................... 6,616
Continued One Group Mid Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 41 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Health Care, continued: 378 Express Scripts, Inc., Class A (b) .......................... $ 18,943 298 First Health Group Corp. (b) ... 8,369 1,061 Gilead Sciences, Inc. (b) ...... 34,876 470 Health Net, Inc. (b) ........... 12,574 89 Henry Schein, Inc. (b) ......... 3,981 143 Hillenbrand Industries, Inc. ... 8,027 720 IDEC Pharmaceuticals Corp. (b) .......................... 25,534 789 IVAX Corp. (b) ................. 8,523 166 King Pharmaceuticals, Inc. (b) .......................... 3,700 189 LifePoint Hospitals, Inc. (b) .......................... 6,850 683 Lincare Holdings, Inc. (b) ..... 22,047 212 MedImmune, Inc. (b) ............ 5,606 599 Mylan Laboratories, Inc. ....... 18,778 424 Oxford Health Plans, Inc. (b) .......................... 19,709 265 Patterson Dental Co. (b) ....... 13,340 443 Quest Diagnostics, Inc. (b) .... 38,118 335 Steris Corp. (b) ............... 6,396 160 Trigon Healthcare, Inc. (b) .... 16,136 526 Universal Health Services, Inc., Class B (b) .................. 25,798 319 Varian Medical Systems, Inc. (b) .......................... 12,936 361 Vertex Pharmaceuticals, Inc. (b) .......................... 5,878 257 VISX, Inc. (b) ................. 2,798 ---------- 403,859 ---------- Raw Materials (1.6%): 132 Cabot Microelectronics Corp. (b) .......................... 5,706 178 Ferro Corp. .................... 5,376 242 Lyondell Chemical Co. .......... 3,660 600 Solutia, Inc. .................. 4,214 288 Valspar Corp. .................. 13,017 ---------- 31,973 ---------- Retail (9.6%): 290 99 Cents Only Stores (b) ....... 7,440 425 Abercrombie & Fitch Co., Class A (b) .......................... 10,253 301 American Eagle Outfitters, Inc. (b) .......................... 6,370 151 Barnes & Noble, Inc. (b) ....... 4,004 122 Bed Bath & Beyond, Inc. (b) .... 4,594 454 BJ's Wholesale Club, Inc. (b) .......................... 17,489 855 Brinker International, Inc. (b) .......................... 27,135 372 CDW Computer Centers, Inc. (b) .......................... 17,431 127 Cheesecake Factory, Inc. (b) ... 4,520 483 Dollar Tree Stores, Inc. (b) ... 19,035 230 Michael's Stores, Inc. (b) ..... 8,959 273 Outback Steakhouse, Inc. (b) ... 9,571 364 Papa John's International, Inc. (b) .......................... 12,160 337 Ross Stores, Inc. .............. 13,748
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Retail, continued: 244 Whole Foods Market, Inc. (b) ... $ 11,788 492 Williams-Sonoma, Inc. (b) ...... 15,095 ---------- 189,592 ---------- Technology (16.7%): 213 Activision, Inc. (b) ........... 6,185 1,470 Cadence Design Systems, Inc. (b) .......................... 23,693 683 Ceridian Corp. (b) ............. 12,970 580 Cypress Semiconductor Corp. (b) .......................... 8,807 331 DeVry, Inc. (b) ................ 7,564 745 Electronic Arts, Inc. (b) ...... 49,196 552 Fairchild Semiconductor Corp. (b) .......................... 13,423 240 FMC Technologies, Inc. (b) ..... 4,987 225 Gartner, Inc., Class A (b) ..... 2,273 258 Integrated Device Technology, Inc. (b) ..................... 4,680 247 International Rectifier Corp. (b) .......................... 7,200 283 Intersil Corp., Class A (b) .... 6,048 220 Investment Technology Group (b) .......................... 7,180 479 L-3 Communications Holdings, Inc. (b) ..................... 25,845 604 Lam Research Corp. (b) ......... 10,859 269 LTX Corp. (b) .................. 3,834 466 Macromedia, Inc. (b) ........... 4,134 553 Micrel, Inc. (b) ............... 7,955 1,140 Microchip Technology, Inc. (b) .......................... 31,281 426 National Instruments Corp. (b) .......................... 13,873 627 Networks Associates, Inc. (b) .......................... 12,088 215 Plantronics, Inc. (b) .......... 4,096 232 Retek, Inc. (b) ................ 5,639 735 RF Micro Devices, Inc. (b) ..... 5,598 450 Semtech Corp. (b) .............. 12,013 579 Symantec Corp. (b) ............. 19,033 311 Synopsys, Inc. (b) ............. 17,043 ---------- 327,497 ---------- Transportation (2.0%): 487 C.H. Robinson Worldwide, Inc. ......................... 16,327 714 Expeditors International of Washington, Inc. ............. 23,679 ---------- 40,006 ---------- Total Common Stocks 1,900,891 ---------- Investment Companies (3.9%): 77,576 One Group Prime Money Market, Class I ...................... 77,576 ---------- Total Investment Companies 77,576 ----------
Continued One Group Mid Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 42 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Repurchase Agreements (0.0%): $ 755 State Street Bank and Trust, 1.55%, 7/1/02 (Proceeds at maturity $755, collateralized by various U.S. Government securities) .................. $ 755 ---------- Total Repurchase Agreements 755 ---------- Total (Cost $1,889,568)(a) $1,979,222 ==========
------------ Percentages indicated are based on net assets of $1,975,224. (a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of the losses recognized for financial reporting purposes in excess of federal income tax reporting. Cost for federal income tax purposes differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 322,352 Unrealized depreciation...................... (176,019) --------- Net unrealized appreciation (depreciation)... $ 146,333 =========
(b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 43 Report One Group Mid Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- --------------------------------- ---------- Common Stocks (97.3%): Business Equipment & Services (1.4%): 189 Checkfree Corp. (b) ............. $ 2,959 339 KEMET Corp. (b) ................. 6,060 351 McData Corp., Class A (b) ....... 3,088 109 Reynolds & Reynolds Co., Class A ............................. 3,035 126 Weatherford International Ltd. (b) ........................... 5,435 ---------- 20,577 ---------- Capital Goods (3.2%): 265 AGCO Corp. ...................... 5,164 109 Cooper Cameron Corp. (b) ........ 5,268 101 Diebold, Inc. ................... 3,746 122 Flowserve Corp. (b) ............. 3,648 143 Granite Construction, Inc. ...... 3,618 225 HON Industries, Inc. ............ 6,119 83 Martin Marietta Materials, Inc. .......................... 3,233 79 Precision Castparts Corp. ....... 2,610 294 Trinity Industries, Inc. ........ 6,088 240 York International Corp. ........ 8,102 ---------- 47,596 ---------- Consumer Durable (4.9%): 399 Arvinmeritor, Inc. .............. 9,571 97 Borg Warner, Inc. ............... 5,585 79 Carlisle Cos., Inc. ............. 3,558 56 ITT Industries, Inc. ............ 3,947 367 Lear Corp. (b) .................. 16,992 110 Modine Manufacturing Co. ........ 2,694 246 Mohawk Industries, Inc. (b) ..... 15,155 611 Republic Services, Inc. (b) ..... 11,648 91 Superior Industries International, Inc. ........... 4,213 ---------- 73,363 ---------- Consumer Non-Durable (9.2%): 455 Constellation Brands, Inc. (b) ........................... 14,566 321 Dean Foods Co. (b) .............. 11,984 416 Dole Food Co., Inc. ............. 11,990 320 Lennar Corp. .................... 19,578 165 Loews Corp. -- Carolina Group ... 4,461 348 Packaging Corporation of America (b) ........................... 6,914 76 Payless Shoesource, Inc. (b) .... 4,358 993 PepsiAmericas, Inc. ............. 14,828 395 RJ Reynolds Tobacco Holdings, Inc. .......................... 21,231 1,825 Tyson Foods, Inc., Class A ...... 28,308 ---------- 138,218 ---------- Consumer Services (4.8%): 475 Belo Corp., Class A ............. 10,728 262 Emmis Communications Corp. (b) ........................... 5,543 329 Extended Stay America, Inc. (b) ........................... 5,340 404 Hispanic Broadcasting Corp. (b) ........................... 10,539 154 Lee Enterprises, Inc. ........... 5,401
Shares or Principal Amount Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Consumer Services, continued: 199 Mandalay Resort Group (b) ....... $ 5,497 126 Media General, Inc. ............. 7,560 1,275 Park Place Entertainment Corp. (b) ........................... 13,073 224 Six Flags, Inc. (b) ............. 3,234 258 Sylvan Learning Systems, Inc. (b) ........................... 5,139 ---------- 72,054 ---------- Energy (8.2%): 210 ENSCO International, Inc. ....... 5,719 154 Forest Oil Corp. (b) ............ 4,375 415 Grant Prideco, Inc. (b) ......... 5,649 321 Great Plains Energy, Inc. ....... 6,534 177 Helmerich & Payne, Inc. ......... 6,312 605 Mirant Corp. (b) ................ 4,413 62 Murphy Oil Corp. ................ 5,148 693 Ocean Energy, Inc. .............. 15,026 201 Patterson-UTI Energy, Inc. (b) ........................... 5,677 555 Pennzoil-Quaker State Co. ....... 11,958 663 Pioneer Natural Resources Co. (b) ........................... 17,277 433 Pride International, Inc. (b) ... 6,779 84 Smith International, Inc. (b) ... 5,742 207 Tidewater, Inc. ................. 6,798 273 Valero Energy Corp. ............. 10,216 339 Varco International, Inc. (b) ... 5,937 ---------- 123,560 ---------- Financial Services (26.0%): 362 A.G. Edwards, Inc. .............. 14,063 223 Allmerica Financial Corp. ....... 10,289 384 AmeriCredit Corp. (b) ........... 10,777 208 AmerUs Group Co. ................ 7,724 434 Astoria Financial Corp. ......... 13,913 302 Bank of Hawaii Corp. ............ 8,450 346 Banknorth Group, Inc. ........... 9,006 205 City National Corp. ............. 11,040 408 Compass Bancshares, Inc. ........ 13,716 103 Countrywide Credit Industries, Inc. .......................... 4,975 182 Cullen/Frost Bankers, Inc. ...... 6,536 111 Delphi Financial Group, Class A (b) ........................... 4,821 1,485 E*Trade Group, Inc. (b) ......... 8,106 240 Everest Re Group Ltd. ........... 13,434 335 Fidelity National Financial, Inc. .......................... 10,599 299 FirstMerit Corp. ................ 8,255 234 GATX Corp. ...................... 7,034 434 Golden State Bancorp ............ 15,747 102 GreenPoint Financial Corp. ...... 5,003 227 HCC Insurance Holdings, Inc. .... 5,981 138 Horace Mann Educators Corp. ..... 2,567 295 IndyMac Bancorp, Inc. (b) ....... 6,688 207 KeyCorp ......................... 5,651
Continued One Group Mid Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 44 Report
Shares or Principal Amount Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Financial Services, continued: x242 LaBranche & Co., Inc. (b) ....... $ 5,537 397 M & T Bank Corp. ................ 34,022 304 Mercantile Bankshares Corp. ..... 12,485 170 Metris Cos., Inc. ............... 1,412 898 National Commerce Financial Co. ........................... 23,607 143 Ohio Casualty Corp. (b) ......... 2,993 436 Old Republic International Corp. ......................... 13,725 418 PMI Group, Inc. ................. 15,960 255 Provident Financial Group, Inc. .......................... 7,400 355 Radian Group, Inc. .............. 17,356 158 Silicon Valley Bankshares (b) ... 4,175 880 Sovereign Bancorp, Inc. ......... 13,156 199 StanCorp Financial Group, Inc. .......................... 11,056 94 The MONY Group, Inc. ............ 3,207 170 Union Planters Corp. ............ 5,511 72 W.R. Berkley Corp. .............. 3,966 204 Webster Financial Corp. ......... 7,801 88 Zions Bancorp ................... 4,600 ---------- 392,344 ---------- Health Care (3.7%): 421 AdvancePCS (b) .................. 10,067 298 ICN Pharmaceuticals, Inc. ....... 7,224 1,012 Millennium Pharmaceuticals, Inc. (b) ........................... 12,289 252 Omnicare, Inc. .................. 6,607 94 PacifiCare Health Systems, Inc. (b) ........................... 2,549 519 Protein Design Labs, Inc. (b) ... 5,631 277 Triad Hospitals, Inc. (b) ....... 11,748 ---------- 56,115 ---------- Raw Materials (7.0%): 397 AK Steel Holding Corp. .......... 5,091 285 Bowater, Inc. ................... 15,473 357 Cabot Corp. ..................... 10,225 43 Cabot Microelectronics Corp. (b) ........................... 1,856 953 Crompton Corp. .................. 12,148 177 Ferro Corp. ..................... 5,337 65 Harsco Corp. .................... 2,426 381 Lubrizol Corp. .................. 12,777 103 OM Group, Inc. .................. 6,355 116 PPG Industries, Inc. ............ 7,162 132 Rayonier, Inc. .................. 6,500 646 Solutia, Inc. ................... 4,538 150 Temple-Inland, Inc. ............. 8,679 130 Valspar Corp. ................... 5,859 ---------- 104,426 ----------
Shares or Principal Amount Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Real Estate Investment Trust (1.1%): 212 Hospitality Properties Trust .... $ 7,734 406 New Plan Excel Realty Trust ..... 8,455 ---------- 16,189 ---------- Retail (2.6%): 224 Barnes & Noble, Inc. (b) ........ 5,931 182 Bed Bath & Beyond, Inc. (b) ..... 6,865 276 Borders Group, Inc. (b) ......... 5,073 207 Furniture Brands International, Inc. (b) ...................... 6,250 136 Longs Drug Stores, Inc. ......... 3,847 155 Neiman-Marcus Group, Inc., Class A (b) ......................... 5,361 452 Saks, Inc. (b) .................. 5,800 ---------- 39,127 ---------- Shelter (2.6%): 760 Clayton Homes, Inc. ............. 12,008 558 D.R. Horton, Inc. ............... 14,527 257 Pentair, Inc. ................... 12,352 ---------- 38,887 ---------- Technology (9.4%): 1,699 3Com Corp. (b) .................. 7,474 259 Adtran, Inc. (b) ................ 4,919 418 Advanced Fibre Communication, Inc. (b) ...................... 6,919 520 Arrow Electronics, Inc. (b) ..... 10,784 1,692 Ascential Software Corp. (b) .... 4,720 1,776 Atmel Corp. (b) ................. 11,120 538 Avnet, Inc. ..................... 11,830 180 Avocent Corp. (b) ............... 2,859 281 Credence Systems Corp. (b) ...... 4,988 317 Harris Corp. .................... 11,487 267 Integrated Device Technology, Inc. (b) ...................... 4,836 175 Keane, Inc. (b) ................. 2,174 429 Lattice Semiconductor Corp. (b) ........................... 3,747 884 Legato Systems, Inc. (b) ........ 3,182 330 Quantum Corp.-DLT & Storage (b) ........................... 1,386 260 SanDisk Corp. (b) ............... 3,219 546 Storage Technology Corp. (b) .... 8,720 623 Sybase, Inc. (b) ................ 6,575 200 Tech Data Corp. (b) ............. 7,566 466 Titan Corp. (b) ................. 8,525 337 TriQuint Semiconductor, Inc. (b) ........................... 2,163 518 Vishay Intertechnology, Inc. (b) ........................... 11,394 ---------- 140,587 ----------
Continued One Group Mid Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 45 Report
Shares or Principal Amount Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Transportation (2.0%): 249 Alaska Air Group, Inc. (b) ...... $ 6,492 148 Alexander & Baldwin, Inc. ....... 3,776 169 CNF, Inc. ....................... 6,403 196 J.B. Hunt Transport Services, Inc. (b) ...................... 5,777 212 Southwest Airlines Co. .......... 3,424 195 Werner Enterprises, Inc. ........ 4,155 ---------- 30,027 ---------- Utilities (11.2%): 139 Alliant Energy Corp. ............ 3,562 455 American Water Works Co., Inc. .......................... 19,664 746 Aquila, Inc. .................... 5,970 684 Calpine Corp. (b) ............... 4,811 96 CenturyTel, Inc. ................ 2,829 471 Conectiv ........................ 12,162 238 DQE, Inc. ....................... 3,325 151 DTE Energy Co. .................. 6,718 465 Energy East Corp. ............... 10,516 145 IDACORP, Inc. ................... 4,025 127 National Fuel Gas Co. ........... 2,848 546 Northeast Utilities ............. 10,276 295 NSTAR ........................... 13,201 100 PNM Resources, Inc. ............. 2,422 621 Potomac Electric Power Co. ...... 13,335 313 Puget Energy, Inc. .............. 6,459
Shares or Principal Amount Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Utilities, continued: 137 Questar Corp. ................... $ 3,389 328 Scana Corp. ..................... 10,113 150 Telephone & Data Systems, Inc. .......................... 9,107 310 Vectren Corp. ................... 7,773 668 Wisconsin Energy Corp. .......... 16,873 ---------- 169,378 ---------- Total Common Stocks 1,462,448 ---------- Warrants (0.0%): Financial Services (0.0%): $ 424 Dime Bancorp, Inc. (b) .......... 42 ---------- Total Warrants 42 ---------- U.S. Treasury Obligations (0.1%): U.S. Treasury Bills (0.1%): 1,250 7/25/02 ......................... 1,249 ---------- Total U.S. Treasury Obligations 1,249 ---------- Investment Companies (2.6%): 38,700 One Group Prime Money Market, Class I ....................... 38,700 ---------- Total Investment Companies 38,700 ---------- Total (Cost $1,364,446)(a) $1,502,439 ==========
------------ Percentages indicated are based on net assets of $1,501,810. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $224,834 Unrealized depreciation...................... (86,841) -------- Net unrealized appreciation (depreciation)... $137,993 ========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 46 Report One Group Diversified Mid Cap Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks (96.4%): Business Equipment & Services (10.2%): 225 Affiliated Computer Services, Inc., Class A (b) ............. $ 10,666 232 BJ Services Co. (b) ............. 7,856 219 DST Systems, Inc. (b) ........... 10,033 129 Fiserv, Inc. (b) ................ 4,722 261 Jacobs Engineering Group, Inc. (b) ........................... 9,060 322 Manpower, Inc. .................. 11,843 489 Office Depot, Inc. (b) .......... 8,207 357 Reynolds & Reynolds Co., Class A ............................. 9,969 656 SunGard Data Systems, Inc. (b) ........................... 17,361 300 Weatherford International Ltd. (b) ........................... 12,958 ---------- 102,675 ---------- Capital Goods (5.7%): 71 American Standard Cos., Inc. (b) ........................... 5,315 215 Cooper Cameron Corp. (b) ........ 10,394 171 Crane Co. ....................... 4,333 174 Cummins, Inc. ................... 5,773 219 Diebold, Inc. ................... 8,173 93 SPX Corp. (b) ................... 10,912 141 Teleflex, Inc. .................. 8,070 134 York International Corp. ........ 4,517 ---------- 57,487 ---------- Consumer Durable (4.9%): 125 Black & Decker Corp. ............ 6,015 140 Borg Warner, Inc. ............... 8,074 322 Dana Corp. ...................... 5,967 207 Lear Corp. (b) .................. 9,588 246 Leggett & Platt, Inc. ........... 5,761 147 Mohawk Industries, Inc. (b) ..... 9,020 161 Snap-On, Inc. ................... 4,771 ---------- 49,196 ---------- Consumer Non-Durable (7.3%): 171 AptarGroup, Inc. ................ 5,272 385 Dial Corp. ...................... 7,706 305 Dole Food Co., Inc. ............. 8,806 508 McCormick & Co., Inc. ........... 13,078 776 PepsiAmericas, Inc. ............. 11,586 219 RJ Reynolds Tobacco Holdings, Inc. .......................... 11,758 984 Tyson Foods, Inc., Class A ...... 15,268 ---------- 73,474 ---------- Consumer Services (3.8%): 222 Emmis Communications Corp. (b) ........................... 4,697 135 Entercom Communications Corp. (b) ........................... 6,191 276 Hispanic Broadcasting Corp. (b) ........................... 7,215 215 New York Times Co., Class A ..... 11,098 438 Six Flags, Inc. (b) ............. 6,331 79 Univision Communications, Inc. (b) ........................... 2,472 ---------- 38,004 ----------
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Energy (3.9%): 112 Ashland Co., Inc. ............... $ 4,531 230 Equitable Resources, Inc. ....... 7,878 126 Murphy Oil Corp. ................ 10,415 123 Nabors Industries Ltd. (b) ...... 4,316 118 Noble Corp. (b) ................. 4,559 285 Pioneer Natural Resources Co. (b) ........................... 7,412 ---------- 39,111 ---------- Financial Services (17.9%): 276 A.G. Edwards, Inc. .............. 10,727 97 AMBAC Financial Group, Inc. ..... 6,493 211 AmeriCredit Corp. (b) ........... 5,906 298 AmSouth Bancorp ................. 6,665 206 Associated Banc-Corp. ........... 7,773 439 Banknorth Group, Inc. ........... 11,429 88 Bear Stearns Co., Inc. .......... 5,402 191 City National Corp. ............. 10,267 454 Compass Bancshares, Inc. ........ 15,264 193 Everest Re Group Ltd. ........... 10,802 141 First Tennessee National Corp. ......................... 5,404 204 FirstMerit Corp. ................ 5,639 205 GreenPoint Financial Corp. ...... 10,067 291 Metris Cos., Inc. ............... 2,419 269 National Commerce Financial Co. ........................... 7,087 131 Nationwide Financial Services, Inc., Class A ................. 5,156 233 Old Republic International Corp. ......................... 7,344 213 PMI Group, Inc. ................. 8,130 330 Radian Group, Inc. .............. 16,131 191 SEI Investments Co. ............. 5,368 237 Southtrust Corp. ................ 6,183 26 Transatlantic Holdings, Inc. .... 2,079 203 Union Planters Corp. ............ 6,580 ---------- 178,315 ---------- Health Care (11.0%): 86 Allergan, Inc. .................. 5,743 135 AmerisourceBergen Corp. ......... 10,243 64 Andrx Group (b) ................. 1,730 181 Beckman Coulter, Inc. ........... 9,010 288 Dentsply International, Inc. .... 10,618 245 Edwards Lifesciences Corp. (b) ........................... 5,685 345 Gilead Sciences, Inc. (b) ....... 11,347 219 Health Management Associates, Inc., Class A (b) ............. 4,407 280 Health Net, Inc. (b) ............ 7,483 257 IDEC Pharmaceuticals Corp. (b) ........................... 9,115 337 IVAX Corp. (b) .................. 3,640 245 King Pharmaceuticals, Inc. (b) ........................... 5,462 104 MedImmune, Inc. (b) ............. 2,736 246 Millennium Pharmaceuticals, Inc. (b) ........................... 2,994 374 Protein Design Labs, Inc. (b) ... 4,062
Continued One Group Diversified Mid Cap Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 47 Report
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Health Care, continued: 218 Universal Health Services, Inc., Class B (b) ................... $ 10,671 201 Waters Corp. (b) ................ 5,372 ---------- 110,318 ---------- Raw Materials (5.9%): 71 Avery Dennison Corp. ............ 4,463 213 Bowater, Inc. ................... 11,572 132 Cabot Corp. ..................... 3,790 616 Crompton Corp. .................. 7,854 204 Engelhard Corp. ................. 5,764 228 Harsco Corp. .................... 8,534 191 Lubrizol Corp. .................. 6,409 102 OM Group, Inc. .................. 6,342 102 Valspar Corp. ................... 4,622 ---------- 59,350 ---------- Retail (3.6%): 291 Abercrombie & Fitch Co., Class A (b) ........................... 7,009 201 Barnes & Noble, Inc. (b) ........ 5,300 319 Brinker International, Inc. (b) ........................... 10,117 127 Federated Department Stores, Inc. (b) ........................... 5,024 261 Liz Claiborne, Inc. ............. 8,312 ---------- 35,762 ---------- Technology (13.3%): 181 Adtran, Inc. (b) ................ 3,446 218 Altera Corp. (b) ................ 2,971 274 AMETEK, Inc. .................... 10,199 268 Arrow Electronics, Inc. (b) ..... 5,568 1,045 Atmel Corp. (b) ................. 6,541 219 BMC Software, Inc. (b) .......... 3,629 515 Cadence Design Systems, Inc. (b) ........................... 8,297 371 Ceridian Corp. (b) .............. 7,038 236 Comverse Technology, Inc. (b) ... 2,183 242 Electronic Arts, Inc. (b) ....... 16,006 217 Integrated Device Technology, Inc. (b) ...................... 3,942 280 Intersil Corp., Class A (b) ..... 5,993 115 Investment Technology Group (b) ........................... 3,761
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Technology, continued: 180 L-3 Communications Holdings, Inc. (b) ........................... $ 9,721 297 Lam Research Corp. (b) .......... 5,338 95 Lexmark International, Inc. (b) ........................... 5,175 368 Microchip Technology, Inc. (b) ........................... 10,085 459 Sanmina Corp. (b) ............... 2,898 224 Semtech Corp. (b) ............... 5,977 361 Symantec Corp. (b) .............. 11,856 126 Teradyne, Inc. (b) .............. 2,971 ---------- 133,595 ---------- Transportation (1.1%): 145 Alaska Air Group, Inc. (b) ...... 3,785 200 CNF, Inc. ....................... 7,608 ---------- 11,393 ---------- Utilities (7.8%): 239 Allegheny Energy, Inc. .......... 6,150 117 Cinergy Corp. ................... 4,204 148 Constellation Energy Group, Inc. .......................... 4,337 449 Energy East Corp. ............... 10,137 98 Entergy Corp. ................... 4,172 100 Kinder Morgan, Inc. ............. 3,813 144 MDU Resources Group, Inc. ....... 3,785 536 Northeast Utilities ............. 10,085 180 Pinnacle West Capital Corp. ..... 7,101 268 Potomac Electric Power Co. ...... 5,757 139 Scana Corp. ..................... 4,298 127 Telephone & Data Systems, Inc. .......................... 7,699 283 Wisconsin Energy Corp. .......... 7,154 ---------- 78,692 ---------- Total Common Stocks 967,372 ---------- Investment Companies (3.4%): 33,768 One Group Prime Money Market, Class I ....................... 33,768 ---------- Total Investment Companies 33,768 ---------- Total (Cost $896,574)(a) $1,001,140 ==========
------------ Percentages indicated are based on net assets of $1,003,240. (a) Represents cost for financial reporting purposes and differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 213,964 Unrealized depreciation...................... (109,398) --------- Net unrealized appreciation (depreciation)... $ 104,566 =========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 48 Report One Group Large Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks (96.8%): Business Equipment & Services (4.3%): 54 Apollo Group, Inc., Class A (b) ........................... $ 2,143 411 Automatic Data Processing, Inc. .......................... 17,897 212 BJ Services Co. (b) ............. 7,168 52 Cintas Corp. .................... 2,572 109 eBay, Inc. (b) .................. 6,742 312 Electronic Data Systems Corp. ... 11,587 491 First Data Corp. ................ 18,264 78 H & R Block, Inc. ............... 3,601 289 Paychex, Inc. ................... 9,057 226 SunGard Data Systems, Inc. (b) ........................... 5,994 157 Weatherford International Ltd. (b) ........................... 6,769 145 Yahoo, Inc. (b) ................. 2,133 ---------- 93,927 ---------- Capital Goods (7.0%): 186 Boeing Co. ...................... 8,371 158 Flowserve Corp. (b) ............. 4,711 4,419 General Electric Co. ............ 128,385 181 Molex, Inc. ..................... 6,070 94 United Technologies Corp. ....... 6,368 ---------- 153,905 ---------- Consumer Durable (1.2%): 122 Black & Decker Corp. ............ 5,865 48 Danaher Corp. ................... 3,199 191 Harley-Davidson, Inc. ........... 9,780 97 Lear Corp. (b) .................. 4,475 93 Masco Corp. ..................... 2,523 ---------- 25,842 ---------- Consumer Non-Durable (9.2%): 816 Coca-Cola Co. ................... 45,693 595 Colgate Palmolive Co. ........... 29,774 689 PepsiCo, Inc. ................... 33,231 812 Philip Morris Co. ............... 35,473 185 Proctor & Gamble Co. ............ 16,563 888 Sysco Corp. ..................... 24,167 277 Unilever N V .................... 17,946 ---------- 202,847 ---------- Consumer Services (3.3%): 919 AOL Time Warner, Inc. (b) ....... 13,521 208 Clear Channel Communications, Inc. (b) ...................... 6,662 45 Harrah's Entertainment, Inc. (b) ........................... 2,006 117 Hispanic Broadcasting Corp. (b) ........................... 3,050 44 International Game Technologies (b) ........................... 2,495 320 Interpublic Group of Cos., Inc. .......................... 7,932 83 Lamar Advertising Co. (b) ....... 3,090 54 Marriott International, Inc., Class A ....................... 2,038 172 Mattel, Inc. .................... 3,621 71 McGraw-Hill Co., Inc. ........... 4,230 93 Omnicom Group, Inc. ............. 4,261
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Consumer Services, continued: 72 Univision Communications, Inc. (b) ........................... $ 2,264 375 Viacom, Inc., Class B (b) ....... 16,644 ---------- 71,814 ---------- Energy (1.5%): 103 Apache Corp. .................... 5,935 128 El Paso Corp. ................... 2,629 74 Murphy Oil Corp. ................ 6,075 167 Noble Corp. (b) ................. 6,453 279 Ocean Energy, Inc. .............. 6,049 93 Smith International, Inc. (b) ... 6,360 ---------- 33,501 ---------- Financial Services (9.9%): 174 AFLAC, Inc. ..................... 5,578 280 American Express Co. ............ 10,170 446 American International Group, Inc. .......................... 30,431 241 Bank of New York Co., Inc. ...... 8,134 243 Capital One Financial Corp. ..... 14,819 465 Charles Schwab Corp. ............ 5,212 383 Citigroup, Inc. ................. 14,823 342 Concord EFS, Inc. (b) ........... 10,320 406 Fannie Mae ...................... 29,946 145 Fifth Third Bancorp ............. 9,658 327 Freddie Mac ..................... 20,042 115 Marsh & McLennan Co. ............ 11,123 226 MBNA Corp. ...................... 7,484 67 Moody's Corp. ................... 3,342 107 North Fork Bancorp, Inc. ........ 4,274 122 Progressive Corp. ............... 7,064 100 SLM Corp. ....................... 9,663 67 StanCorp Financial Group, Inc. .......................... 3,717 110 State Street Corp. .............. 4,901 147 Wells Fargo & Co. ............... 7,372 ---------- 218,073 ---------- Health Care (24.4%): 695 Abbott Laboratories ............. 26,157 188 Affymetrix, Inc. (b) ............ 4,498 175 Allergan, Inc. .................. 11,701 106 AmerisourceBergen Corp. ......... 8,032 588 Amgen, Inc. (b) ................. 24,615 88 Anthem, Inc. (b) ................ 5,951 382 Baxter International, Inc. ...... 16,967 87 Beckman Coulter, Inc. ........... 4,359 259 Biomet, Inc. .................... 7,011 179 Bristol-Myers Squibb Co. ........ 4,606 113 Cardinal Health, Inc. ........... 6,942 485 Eli Lilly & Co. ................. 27,360 241 Gilead Sciences, Inc. (b) ....... 7,929 152 Guidant Corp. (b) ............... 4,605 369 HCA-The Healthcare Corp. ........ 17,521 197 IDEC Pharmaceuticals Corp. (b) ........................... 6,986 143 Immunex Corp. (b) ............... 3,190
Continued One Group Large Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 49 Report
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Health Care, continued: 1,128 Johnson & Johnson ............... $ 58,956 343 King Pharmaceuticals, Inc. (b) ........................... 7,621 154 Lincare Holdings, Inc. (b) ...... 4,966 380 MedImmune, Inc. (b) ............. 10,024 659 Medtronic, Inc. ................. 28,241 461 Merck & Co., Inc. ............... 23,331 2,957 Pfizer, Inc. .................... 103,478 690 Pharmacia Corp. ................. 25,843 68 Quest Diagnostics, Inc. (b) ..... 5,817 256 Schering-Plough Corp. ........... 6,298 68 Tenet Healthcare Corp. (b) ...... 4,850 122 UnitedHealth Group, Inc. ........ 11,181 60 Universal Health Services, Inc., Class B (b) ................... 2,952 236 Waters Corp. (b) ................ 6,308 97 Wellpoint Health Networks, Inc. (b) ........................... 7,516 676 Wyeth ........................... 34,599 161 Zimmer Holdings, Inc. (b) ....... 5,758 ---------- 536,169 ---------- Multi-Industry (0.8%): 142 Minnesota Mining & Manufacturing Co. ........................... 17,516 ---------- Raw Materials (0.2%): 123 Alcoa, Inc. ..................... 4,077 ---------- Retail (13.4%): 343 Bed Bath & Beyond, Inc. (b) ..... 12,926 87 Best Buy Co., Inc. (b) .......... 3,161 308 Brinker International, Inc. (b) ........................... 9,770 258 CVS Corp. ....................... 7,904 917 Darden Restaurants, Inc. ........ 22,654 202 Gap, Inc. ....................... 2,868 1,268 Home Depot, Inc. ................ 46,580 114 Kohl's Corp. (b) ................ 7,982 710 Kroger Co. (b) .................. 14,124 325 Lowe's Cos., Inc. ............... 14,735 233 Safeway, Inc. (b) ............... 6,809 1,254 Starbucks Corp. (b) ............. 31,169 223 Target Corp. .................... 8,481 295 TJX Cos., Inc. .................. 5,786 1,328 Wal-Mart Stores, Inc. ........... 73,063 704 Walgreen Co. .................... 27,197 ---------- 295,209 ---------- Shelter (0.2%): 109 Fluor Corp. ..................... 4,246 ---------- Technology (20.4%): 817 ADC Telecommunications, Inc. (b) ........................... 1,871 169 Adobe Systems, Inc. ............. 4,818 151 Advanced Fibre Communication, Inc. (b) ...................... 2,505 208 Agilent Technologies, Inc. (b) ........................... 4,926
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Technology, continued: 195 Altera Corp. (b) ................ $ 2,657 125 Analog Devices, Inc. (b) ........ 3,715 969 Applied Materials, Inc. (b) ..... 18,430 240 BMC Software, Inc. (b) .......... 3,983 107 Brocade Communications Systems, Inc. (b) ...................... 1,865 250 Cadence Design Systems, Inc. (b) ........................... 4,025 3,570 Cisco Systems, Inc. (b) ......... 49,805 293 Comverse Technology, Inc. (b) ... 2,710 1,161 Dell Computer Corp. (b) ......... 30,341 77 Electronic Arts, Inc. (b) ....... 5,062 462 EMC Corp. (b) ................... 3,491 71 General Dynamics Corp. .......... 7,501 65 Harris Corp. .................... 2,352 312 IBM Corp. ....................... 22,463 3,177 Intel Corp. ..................... 58,041 85 Intuit, Inc. (b) ................ 4,236 81 Jabil Circuit, Inc. (b) ......... 1,716 112 KLA-Tencor Corp. (b) ............ 4,948 38 Lexmark International, Inc. (b) ........................... 2,067 255 Linear Technology Corp. ......... 8,016 88 Micron Technology, Inc. (b) ..... 1,772 2,183 Microsoft Corp. (b) ............. 119,428 229 Motorola, Inc. .................. 3,300 110 National Instruments Corp. (b) ........................... 3,588 91 Novellus Systems, Inc. (b) ...... 3,099 948 Oracle Corp. (b) ................ 8,973 472 PerkinElmer, Inc. ............... 5,214 84 Qlogic Corp. (b) ................ 3,192 476 Qualcomm, Inc. (b) .............. 13,095 579 Sun Microsystems, Inc. (b) ...... 2,902 251 Sybase, Inc. (b) ................ 2,651 1,078 Texas Instruments, Inc. ......... 25,545 134 TMP Worldwide, Inc. (b) ......... 2,887 60 Xilinx, Inc. (b) ................ 1,337 ---------- 448,527 ---------- Telecommunications (0.1%): 112 EchoStar Communications Corp., Class A (b) ................... 2,069 ---------- Transportation (0.9%): 304 Southwest Airlines Co. .......... 4,913 238 United Parcel Service, Inc., Class B ....................... 14,680 ---------- 19,593 ---------- Total Common Stocks 2,127,315 ---------- Investment Companies (2.3%): 49,997 One Group Prime Money Market, Class I ....................... 49,997 ---------- Total Investment Companies 49,997 ---------- Total (Cost $1,896,007)(a) $2,177,312 ==========
Continued One Group Large Cap Growth Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 50 Report ------------ Percentages indicated are based on net assets of $2,196,670. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 456,289 Unrealized depreciation...................... (174,984) --------- Net unrealized appreciation (depreciation)... $ 281,305 =========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 51 Report One Group Large Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value ------ ---------------------------------- ---------- Common Stocks (98.2%): Business Equipment & Services (1.2%): 86 BJ Services Co. (b) .............. $ 2,914 41 Computer Sciences Corp. (b) ...... 1,960 175 Electronic Data Systems Corp. .... 6,501 65 Weatherford International Ltd. (b) ............................ 2,807 ---------- 14,182 ---------- Capital Goods (4.0%): 144 Boeing Co. ....................... 6,481 155 Caterpillar, Inc. ................ 7,569 104 Cummins, Inc. .................... 3,450 44 Emerson Electric Co. ............. 2,354 88 HON Industries, Inc. ............. 2,395 36 Illinois Tool Works, Inc. ........ 2,459 24 Johnson Controls, Inc. ........... 1,956 113 Navistar International Corp. ..... 3,616 504 Tyco International Ltd. .......... 6,809 177 United Technologies Corp. ........ 12,020 ---------- 49,109 ---------- Consumer Durable (3.2%): 121 Arvinmeritor, Inc. ............... 2,904 63 Black & Decker Corp. ............. 3,037 52 Danaher Corp. .................... 3,429 81 Eastman Kodak Co. ................ 2,363 459 Ford Motor Co. ................... 7,344 147 General Motors Corp. ............. 7,856 78 ITT Industries, Inc. ............. 5,507 75 Lear Corp. (b) ................... 3,469 116 Masco Corp. ...................... 3,145 ---------- 39,054 ---------- Consumer Non-Durable (2.8%): 297 Coca-Cola Enterprises, Inc. ...... 6,558 144 International Paper Co. .......... 6,276 420 McDonald's Corp. ................. 11,949 67 Newell Rubbermaid, Inc. .......... 2,349 434 Tyson Foods, Inc., Class A ....... 6,731 ---------- 33,863 ---------- Consumer Services (7.2%): 1,127 AOL Time Warner, Inc. (b) ........ 16,578 57 Belo Corp., Class A .............. 1,289 151 Carnival Corp. ................... 4,181 248 Clear Channel Communications, Inc. (b) ............................ 7,941 230 Comcast Corp., Class A (b) ....... 5,483 108 Gannett Co., Inc. ................ 8,197 30 Harrah's Entertainment, Inc. (b) ............................ 1,331 29 Knight-Ridder, Inc. .............. 1,826 31 Lamar Advertising Co. (b) ........ 1,154 70 Marriott International, Inc., Class A ........................ 2,664 120 Tribune Co. ...................... 5,220 503 Viacom, Inc., Class B (b) ........ 22,317
Shares Security Description Value ------ ---------------------------------- ---------- Common Stocks, continued: Consumer Services, continued: 569 Walt Disney Co. .................. $ 10,754 ---------- 88,935 ---------- Energy (14.8%): 64 Anadarko Petroleum Corp. ......... 3,155 54 Apache Corp. ..................... 3,104 245 ChevronTexaco Corp. .............. 21,688 142 Conoco, Inc. ..................... 3,948 64 Devon Energy Corp. ............... 3,154 136 El Paso Corp. .................... 2,803 1,851 Exxon Mobil Corp. ................ 75,743 441 Mirant Corp. (b) ................. 3,219 35 Murphy Oil Corp. ................. 2,888 100 Nabors Industries Ltd. (b) ....... 3,515 70 Noble Corp. (b) .................. 2,702 91 Occidental Petroleum Corp. ....... 2,729 99 Phillips Petroleum Co. ........... 5,829 634 Royal Dutch Petroleum Co. ........ 35,041 117 Schlumberger Ltd. ................ 5,441 44 Smith International, Inc. (b) .... 3,000 114 Unocal Corp. ..................... 4,211 ---------- 182,170 ---------- Financial Services (30.9%): 75 ACE Ltd. ......................... 2,370 87 Allstate Corp. ................... 3,217 101 AMBAC Financial Group, Inc. ...... 6,787 675 American International Group, Inc. ........................... 46,054 498 Bank of America Corp. ............ 35,038 110 Bank of New York Co., Inc. ....... 3,713 75 Capital One Financial Corp. ...... 4,579 95 Charter One Financial, Inc. ...... 3,266 51 Chubb Corp. ...................... 3,611 1,389 Citigroup, Inc. .................. 53,823 88 Countrywide Credit Industries, Inc. ........................... 4,246 376 FleetBoston Financial Corp. ...... 12,164 221 Freddie Mac ...................... 13,525 49 Goldman Sachs Group, Inc. ........ 3,594 70 Hartford Financial Services Group, Inc. ........................... 4,163 65 Household International, Inc. .... 3,231 108 John Hancock Financial Services, Inc. ........................... 3,802 772 JP Morgan Chase & Co. ............ 26,186 71 Lehman Brothers Holding, Inc. .... 4,439 119 Lincoln National Corp. ........... 4,998 120 Loews Corp. ...................... 6,359 286 Merrill Lynch & Co., Inc. ........ 11,583 206 MetLife, Inc. .................... 5,933 292 Morgan Stanley Dean Witter & Co. ............................ 12,579 137 PNC Financial Services Group ..... 7,162 111 Progressive Corp. ................ 6,404 76 SAFECO Corp. ..................... 2,348 111 State Street Corp. ............... 4,962 696 U.S. Bancorp ..................... 16,252
Continued One Group Large Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 52 Report
Shares Security Description Value ------ ---------------------------------- ---------- Common Stocks, continued: Financial Services, continued: 150 Union Planters Corp. ............. $ 4,856 435 Wachovia Corp. ................... 16,620 183 Washington Mutual, Inc. .......... 6,791 573 Wells Fargo & Co. ................ 28,683 38 XL Capital, Ltd., Class A ........ 3,219 57 Zions Bancorp .................... 2,970 ---------- 379,527 ---------- Health Care (1.9%): 31 AmerisourceBergen Corp. .......... 2,356 32 Bausch & Lomb, Inc. .............. 1,083 37 Cigna Corp. ...................... 3,605 178 Genzyme Corp. (b) ................ 3,425 105 HealthSouth Corp. (b) ............ 1,343 135 King Pharmaceuticals, Inc. (b) ... 3,004 29 Manor Care, Inc. (b) ............. 667 70 McKesson HBOC, Inc. .............. 2,289 74 Wellpoint Health Networks, Inc. (b) ............................ 5,757 ---------- 23,529 ---------- Multi-Industry (1.4%): 215 Honeywell International, Inc. .... 7,559 81 Minnesota Mining & Manufacturing Co. ............................ 9,933 ---------- 17,492 ---------- Raw Materials (4.3%): 573 Alcoa, Inc. ...................... 18,995 500 Dow Chemical Co. ................. 17,190 147 Engelhard Corp. .................. 4,168 59 Praxair, Inc. .................... 3,361 496 Solutia, Inc. .................... 3,482 98 Temple-Inland, Inc. .............. 5,670 ---------- 52,866 ---------- Real Estate Investment Trust (0.3%): 138 Equity Office Properties Trust ... 4,154 ---------- Retail (3.3%): 139 Albertson's, Inc. ................ 4,234 194 Costco Wholesale Corp. (b) ....... 7,492 197 CVS Corp. ........................ 6,028 104 Darden Restaurants, Inc. ......... 2,569 123 Federated Department Stores, Inc. (b) ............................ 4,883 59 May Department Stores Co. ........ 1,943 54 Nike, Inc., Class B .............. 2,897 160 Safeway, Inc. (b) ................ 4,670 73 Sears Roebuck & Co. .............. 3,964 115 Staples, Inc. (b) ................ 2,266 ---------- 40,946 ---------- Technology (8.3%): 1,513 ADC Telecommunications, Inc. (b) ............................ 3,465 71 Agilent Technologies, Inc. (b) ... 1,679
Shares Security Description Value ------ ---------------------------------- ---------- Common Stocks, continued: Technology, continued: 231 Andrew Corp. (b) ................. $ 3,310 211 Apple Computer, Inc. (b) ......... 3,733 272 BMC Software, Inc. (b) ........... 4,515 346 Citizens Communications Co. (b) ............................ 2,893 328 Comverse Technology, Inc. (b) .... 3,037 525 EMC Corp. (b) .................... 3,964 29 General Dynamics Corp. ........... 3,089 889 Hewlett-Packard Co. .............. 13,580 68 Jabil Circuit, Inc. (b) .......... 1,435 181 Lockheed Martin Corp. ............ 12,574 210 Micron Technology, Inc. (b) ...... 4,246 773 Motorola, Inc. ................... 11,147 64 Northrop Grumman Corp. ........... 8,000 64 Novellus Systems, Inc. (b) ....... 2,174 833 Parametric Technology Corp. (b) ............................ 2,857 197 Raytheon Co. ..................... 8,045 81 Sanmina Corp. (b) ................ 511 783 Sun Microsystems, Inc. (b) ....... 3,923 82 Teradyne, Inc. (b) ............... 1,936 60 Texas Instruments, Inc. .......... 1,422 ---------- 101,535 ---------- Transportation (2.0%): 200 Canadian National Railway Co. .... 10,381 98 Delta Airlines, Inc. ............. 1,960 298 Southwest Airlines Co. ........... 4,816 225 UAL Corp. ........................ 2,574 80 United Parcel Service, Inc., Class B .............................. 4,945 ---------- 24,676 ---------- Utilities (12.6%): 116 Allegheny Energy, Inc. ........... 2,985 116 Alltel Corp. ..................... 5,452 83 American Electric Power Co., Inc. ........................... 3,310 879 AT&T Corp. ....................... 9,405 670 AT&T Wireless Services, Inc. (b) ............................ 3,920 441 BellSouth Corp. .................. 13,876 641 Calpine Corp. (b) ................ 4,506 149 CenturyTel, Inc. ................. 4,396 77 Dominion Resources, Inc. ......... 5,097 98 DTE Energy Co. ................... 4,352 304 Duke Energy Corp. ................ 9,454 136 Entergy Corp. .................... 5,791 102 Exelon Corp. ..................... 5,335 51 FPL Group, Inc. .................. 3,039 102 Kinder Morgan, Inc. .............. 3,878 104 PG&E Corp. (b) ................... 1,867 77 Progress Energy, Inc. ............ 4,023 52 Public Service Enterprise Group, Inc. ........................... 2,252 874 SBC Communications, Inc. ......... 26,656
Continued One Group Large Cap Value Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 53 Report
Shares Security Description Value ------ ---------------------------------- ---------- Common Stocks, continued: Utilities, continued: 103 TXU Corp. ........................ $ 5,310 646 Verizon Communications ........... 25,937 204 XCEL Energy, Inc. ................ 3,421 ---------- 154,262 ---------- Total Common Stocks 1,206,300 ---------- Investment Companies (2.2%): 26,601 One Group Prime Money Market, Class I ........................ 26,601 ---------- Total Investment Companies 26,601 ---------- Total (Cost $1,242,922)(a) $1,232,901 ==========
------------ Percentages indicated are based on net assets of $1,227,888. (a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of the losses recognized for financial reporting purposes in excess of federal income tax reporting. Cost for federal income tax purposes differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 148,603 Unrealized depreciation...................... (206,808) --------- Net unrealized appreciation (depreciation)... $ (58,205) =========
(b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 54 Report One Group Equity Income Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks (93.7%): Business Equipment & Services (1.1%): 75 Automatic Data Processing, Inc. ... $ 3,266 30 Electronic Data Systems Corp. ..... 1,115 40 Pitney Bowes, Inc. ................ 1,589 -------- 5,970 -------- Capital Goods (8.0%): 110 Boeing Co. ........................ 4,950 25 Emerson Electric Co. .............. 1,338 750 General Electric Co. .............. 21,787 45 Illinois Tool Works, Inc. ......... 3,074 30 Ingersoll-Rand Co. ................ 1,370 35 Johnson Controls, Inc. ............ 2,856 110 United Technologies Corp. ......... 7,469 -------- 42,844 -------- Consumer Durable (1.7%): 70 Black & Decker Corp. .............. 3,374 135 Ford Motor Co. .................... 2,160 85 Stanley Works ..................... 3,486 -------- 9,020 -------- Consumer Non-Durable (10.6%): 205 Coca-Cola Co. ..................... 11,479 50 Colgate Palmolive Co. ............. 2,503 125 ConAgra Foods, Inc. ............... 3,456 50 Estee Lauder Cos., Class A ........ 1,760 75 Gillette Co. ...................... 2,540 100 Kimberly-Clark Corp. .............. 6,200 65 Kraft Foods, Inc. ................. 2,662 60 Loews Corp. -- Carolina Group ..... 1,623 150 McDonald's Corp. .................. 4,268 126 PepsiCo, Inc. ..................... 6,073 170 Philip Morris Co. ................. 7,426 75 Proctor & Gamble Co. .............. 6,698 -------- 56,688 -------- Consumer Services (2.1%): 50 Gannett Co., Inc. ................. 3,795 70 McGraw-Hill Co., Inc. ............. 4,179 30 Omnicom Group, Inc. ............... 1,374 100 Walt Disney Co. ................... 1,890 -------- 11,238 -------- Energy (9.0%): 40 Anadarko Petroleum Corp. .......... 1,972 73 ChevronTexaco Corp. ............... 6,474 60 Conoco, Inc. ...................... 1,668 600 Exxon Mobil Corp. ................. 24,551 210 Royal Dutch Petroleum Co. ......... 11,607 40 Schlumberger Ltd. ................. 1,860 -------- 48,132 --------
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Financial Services (20.1%): 100 AFLAC, Inc. ....................... $ 3,200 80 Allstate Corp. .................... 2,958 110 American Express Co. .............. 3,995 20 American International Group, Inc. ............................ 1,365 170 Bank of America Corp. ............. 11,960 30 Bank of New York Co., Inc. ........ 1,013 60 Cincinnati Financial Corp. ........ 2,792 395 Citigroup, Inc. ................... 15,305 140 Fannie Mae ........................ 10,325 95 First Tennessee National Corp. .... 3,639 200 JP Morgan Chase & Co. ............. 6,784 60 Marsh & McLennan Co. .............. 5,796 100 MBNA Corp. ........................ 3,307 100 Merrill Lynch & Co., Inc. ......... 4,050 65 Morgan Stanley Dean Witter & Co. ............................. 2,800 60 National City Corp. ............... 1,995 150 Southtrust Corp. .................. 3,918 25 St. Paul Co., Inc. ................ 973 253 U.S. Bancorp ...................... 5,908 100 Washington Mutual, Inc. ........... 3,711 220 Wells Fargo & Co. ................. 11,013 -------- 106,807 -------- Health Care (12.8%): 90 Abbott Laboratories ............... 3,389 170 Baxter International, Inc. ........ 7,557 200 Bristol-Myers Squibb Co. .......... 5,140 15 Cigna Corp. ....................... 1,461 90 Johnson & Johnson ................. 4,703 90 Medtronic, Inc. ................... 3,857 140 Merck & Co., Inc. ................. 7,090 500 Pfizer, Inc. ...................... 17,499 85 Pharmacia Corp. ................... 3,183 150 Schering-Plough Corp. ............. 3,690 200 Wyeth ............................. 10,239 -------- 67,808 -------- Multi-Industry (2.2%): 90 Honeywell International, Inc. ..... 3,171 70 Minnesota Mining & Manufacturing Co. ............................. 8,610 -------- 11,781 -------- Raw Materials (2.2%): 80 Air Products and Chemicals, Inc. ............................ 4,038 150 Dow Chemical Co. .................. 5,157 40 PPG Industries, Inc. .............. 2,476 -------- 11,671 -------- Real Estate Investment Trust (6.1%): 55 AMB Property Corp. ................ 1,705 105 Archstone-Smith Trust ............. 2,804
Continued One Group Equity Income Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 55 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Real Estate Investment Trust, continued: 95 Carramerica Realty Corp. .......... $ 2,931 55 Colonial Properties Trust ......... 2,142 130 Developers Diversified Realty Corp. ........................... 2,925 100 Duke Realty Investments, Inc. ..... 2,895 104 Equity Office Properties Trust .... 3,116 100 Equity Residential Properties Trust ........................... 2,875 60 Public Storage, Inc. .............. 2,226 60 Reckson Associates Realty Corp. ... 1,494 85 Simon Property Group, Inc. ........ 3,131 50 SL Green Realty Corp. ............. 1,783 60 Vornado Realty Trust .............. 2,772 -------- 32,799 -------- Retail (7.6%): 100 Albertson's, Inc. ................. 3,046 200 Home Depot, Inc. .................. 7,346 30 Nike, Inc., Class B ............... 1,610 75 Sherwin-Williams Co. .............. 2,245 125 Target Corp. ...................... 4,763 300 Wal-Mart Stores, Inc. ............. 16,502 130 Walgreen Co. ...................... 5,022 -------- 40,534 -------- Technology (2.7%): 150 Hewlett-Packard Co. ............... 2,292 125 IBM Corp. ......................... 9,000 90 Intel Corp. ....................... 1,644 70 Texas Instruments, Inc. ........... 1,659 -------- 14,595 -------- Transportation (0.9%): 60 Canadian National Railway Co. ..... 3,108 30 United Parcel Service, Inc., Class B ............................... 1,853 -------- 4,961 -------- Utilities (6.6%): 60 Allegheny Energy, Inc. ............ 1,545 100 American Electric Power Co., Inc. ............................ 4,002 120 BellSouth Corp. ................... 3,780 75 CenturyTel, Inc. .................. 2,213 90 Entergy Corp. ..................... 3,820
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Utilities, continued: 95 Pinnacle West Capital Corp. ....... $ 3,753 275 SBC Communications, Inc. .......... 8,387 200 Verizon Communications ............ 8,029 -------- 35,529 -------- Total Common Stocks 500,377 -------- Convertible Bonds (0.9%): Consumer Services (0.9%): $4,250 Interpublic Group, 1.87%, 6/1/06, Callable 8/21/02 @ 89.67 ........ 3,347 25 Tribune Co., 2.00%, 5/15/29 ....... 1,631 -------- Total Convertible Bonds 4,978 -------- Convertible Preferred Stocks (4.4%): Business Equipment & Services (0.6%): 80 Electronic Data Systems, Inc., 7.63% ........................... 2,976 -------- Consumer Durable (0.3%): 70 General Motors, Series B, 5.25% ... 1,839 -------- Energy (1.0%): 150 Duke Energy Corp., 8.25% .......... 3,375 50 El Paso Energy Capital, 4.75% ..... 1,840 -------- 5,215 -------- Financial Services (1.5%): 50 Metlife Capital Trust, 8.00% ...... 4,441 70 Prudential Financial, Inc., 6.75% ........................... 4,032 -------- 8,473 -------- Raw Materials (0.5%): 50 Temple-Inland, Inc., 7.50% ........ 2,745 -------- Technology (0.5%): 55 Motorola, Inc., 7.00% ............. 2,523 -------- Total Convertible Preferred Stocks 23,771 -------- Investment Companies (0.9%): 4,884 One Group Prime Money Market, Class I ............................... 4,884 -------- Total Investment Companies 4,884 -------- Total (Cost $307,250)(a) $534,010 ========
------------ Percentages indicated are based on net assets of $534,421. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $238,791 Unrealized depreciation...................... (12,031) -------- Net unrealized appreciation (depreciation)... $226,760 ========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 56 Report One Group Diversified Equity Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks (96.9%): Business Equipment & Services (2.5%): 252 Automatic Data Processing, Inc. .......................... $ 10,994 334 Electronic Data Systems Corp. ... 12,409 356 Paychex, Inc. ................... 11,149 222 Weatherford International Ltd. (b) ........................... 9,603 ---------- 44,155 ---------- Capital Goods (6.3%): 162 Boeing Co. ...................... 7,278 153 Cooper Cameron Corp. (b) ........ 7,409 324 Crane Co. ....................... 8,235 162 Diebold, Inc. ................... 6,026 1,670 General Electric Co. ............ 48,522 217 Johnson Controls, Inc. .......... 17,681 80 SPX Corp. (b) ................... 9,455 547 Tyco International Ltd. ......... 7,394 ---------- 112,000 ---------- Consumer Durable (3.3%): 424 Dana Corp. ...................... 7,860 270 Danaher Corp. ................... 17,892 86 Eaton Corp. ..................... 6,242 277 General Motors Corp. ............ 14,791 244 Lear Corp. (b) .................. 11,289 ---------- 58,074 ---------- Consumer Non-Durable (8.9%): 653 Coca-Cola Co. ................... 36,573 285 Dole Food Co., Inc. ............. 8,228 278 Interstate Bakeries Corp. ....... 8,021 165 Kimberly-Clark Corp. ............ 10,255 169 Kraft Foods, Inc. ............... 6,941 453 McDonald's Corp. ................ 12,882 238 Pepsi Bottling Group, Inc. ...... 7,329 685 Philip Morris Co. ............... 29,899 153 Proctor & Gamble Co. ............ 13,628 440 Sysco Corp. ..................... 11,987 752 Tyson Foods, Inc., Class A ...... 11,659 ---------- 157,402 ---------- Consumer Services (4.4%): 1,188 AOL Time Warner, Inc. (b) ....... 17,471 244 Clear Channel Communications, Inc. (b) ...................... 7,811 329 Comcast Corp., Class A (b) ...... 7,840 188 Omnicom Group, Inc. ............. 8,619 632 Viacom, Inc., Class B (b) ....... 28,060 448 Walt Disney Co. ................. 8,471 ---------- 78,272 ---------- Energy (6.1%): 193 ChevronTexaco Corp. ............. 17,040 465 El Paso Corp. ................... 9,583 1,713 Exxon Mobil Corp. ............... 70,097 140 Murphy Oil Corp. ................ 11,574 ---------- 108,294 ----------
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Financial Services (19.2%): 373 American Express Co. ............ $ 13,533 627 American International Group, Inc. .......................... 42,769 420 Bank of America Corp. ........... 29,529 161 BB&T Corp. ...................... 6,203 320 Charter One Financial, Inc. ..... 11,002 1,405 Citigroup, Inc. ................. 54,461 672 FleetBoston Financial Corp. ..... 21,735 577 Freddie Mac ..................... 35,297 262 Hartford Financial Services Group, Inc. ................... 15,607 659 JP Morgan Chase & Co. ........... 22,363 161 Lincoln National Corp. .......... 6,774 186 Marsh & McLennan Co. ............ 17,987 419 Morgan Stanley Dean Witter & Co. ........................... 18,038 652 Providian Financial Corp. ....... 3,834 363 Southtrust Corp. ................ 9,475 179 SunTrust Banks, Inc. ............ 12,106 446 Wells Fargo & Co. ............... 22,327 ---------- 343,040 ---------- Health Care (13.3%): 368 Abbott Laboratories ............. 13,853 341 Amgen, Inc. (b) ................. 14,289 340 Baxter International, Inc. ...... 15,113 580 Bristol-Myers Squibb Co. ........ 14,915 114 Cigna Corp. ..................... 11,140 170 Guidant Corp. (b) ............... 5,143 280 Johnson & Johnson ............... 14,623 272 MedImmune, Inc. (b) ............. 7,168 435 Medtronic, Inc. ................. 18,633 258 Merck & Co., Inc. ............... 13,090 1,508 Pfizer, Inc. .................... 52,774 367 Pharmacia Corp. ................. 13,742 412 Schering-Plough Corp. ........... 10,143 384 Waters Corp. (b) ................ 10,250 433 Wyeth ........................... 22,148 0 Zimmer Holdings, Inc. (b) ....... 0 ---------- 237,024 ---------- Multi-Industry (2.3%): 494 Honeywell International, Inc. ... 17,407 192 Minnesota Mining & Manufacturing Co. ........................... 23,580 ---------- 40,987 ---------- Raw Materials (2.9%): 560 Alcoa, Inc. ..................... 18,568 231 Cabot Corp. ..................... 6,609 526 Crompton Corp. .................. 6,712 280 Sigma-Aldrich Corp. ............. 14,047 108 Temple-Inland, Inc. ............. 6,273 ---------- 52,209 ----------
Continued One Group Diversified Equity Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 57 Report
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Retail (7.1%): 241 Bed Bath & Beyond, Inc. (b) ..... $ 9,100 384 Brinker International, Inc. (b) ........................... 12,179 472 Home Depot, Inc. ................ 17,320 563 Limited, Inc. ................... 11,997 333 Target Corp. .................... 12,690 791 Wal-Mart Stores, Inc. ........... 43,522 484 Walgreen Co. .................... 18,706 ---------- 125,514 ---------- Shelter (0.5%): 195 Pentair, Inc. ................... 9,372 ---------- Technology (12.5%): 1,018 ADC Telecommunications, Inc. (b) ........................... 2,331 667 Applied Materials, Inc. (b) ..... 12,682 1,181 Cisco Systems, Inc. (b) ......... 16,479 420 Comverse Technology, Inc. (b) ... 3,889 274 Dell Computer Corp. (b) ......... 7,153 357 EMC Corp. (b) ................... 2,692 408 Hewlett-Packard Co. ............. 6,229 324 IBM Corp. ....................... 23,349 1,489 Intel Corp. ..................... 27,206 227 Linear Technology Corp. ......... 7,126 1,109 Microsoft Corp. (b) ............. 60,678 436 Motorola, Inc. .................. 6,282 833 Oracle Corp. (b) ................ 7,886 278 Qualcomm, Inc. (b) .............. 7,642 262 Rational Software Corp. (b) ..... 2,154 375 Sun Microsystems, Inc. (b) ...... 1,878 306 Symantec Corp. (b) .............. 10,060
Shares Security Description Value --------- --------------------------------- ---------- Common Stocks, continued: Technology, continued: 412 Texas Instruments, Inc. ......... $ 9,760 262 Xilinx, Inc. (b) ................ 5,865 ---------- 221,341 ---------- Transportation (0.9%): 128 Canadian National Railway Co. ... 6,620 147 United Parcel Service, Inc., Class B ....................... 9,084 ---------- 15,704 ---------- Utilities (6.7%): 357 AT&T Corp. ...................... 3,825 478 BellSouth Corp. ................. 15,045 241 CenturyTel, Inc. ................ 7,105 348 Energy East Corp. ............... 7,855 305 FPL Group, Inc. ................. 18,326 215 Kinder Morgan, Inc. ............. 8,176 470 Pinnacle West Capital Corp. ..... 18,574 780 SBC Communications, Inc. ........ 23,778 405 Verizon Communications .......... 16,261 ---------- 118,945 ---------- Total Common Stocks 1,722,333 ---------- Investment Companies (3.2%): 56,099 One Group Prime Money Market, Class I ....................... 56,099 ---------- Total Investment Companies 56,099 ---------- Total (Cost $1,738,083)(a) $1,778,432 ==========
------------ Percentages indicated are based on net assets of $1,776,187. (a) Represents cost for financial reporting purposes and differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 301,157 Unrealized depreciation...................... (260,808) --------- Net unrealized appreciation (depreciation)... $ 40,349 =========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. Amounts shown as 0 rounded to less than 1,000. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 58 Report One Group Balanced Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Asset Backed Securities (3.7%): $ 384 Advanta Equipment Receivables, Series 98-1, Class A4, 5.98%, 12/15/06 ........................ $ 385 1,000 Arcadia Automobile Receivables Trust, Series 98-B, Class A5, 6.06%, 6/15/06 .................. 1,015 1,350 Contimortgage Home Equity Loan Trust, Series 98-1, Class A6, 6.58%, 12/15/18 ................. 1,390 600 Dayton Hudson Credit Card Master Trust, Series 97-1, Class A, 6.25%, 8/25/05 .................. 609 350 Dayton Hudson Credit Card Master Trust, Series 98-1A, 5.90%, 5/25/06 ......................... 363 482 EQCC Home Equity Loan Trust, Series 98-2, Class A6F, 6.16%, 4/15/08 ......................... 500 223 EQCC Home Equity Loan Trust, Series 97-2, Class A7, 6.89%, 2/15/20 ......................... 231 750 EQCC Home Equity Loan Trust, Series 98-2, Class A4F, 6.33%, 1/15/22 ......................... 771 418 Fleetwood Credit Corp., Grantor Trust, Series 97-B, Class A, 6.40%, 5/15/13 .................. 436 331 Green Tree Recreational, Equipment and Consulting, Series 98-B, Class A5, 6.10%, 12/15/13 ....... 338 198 Green Tree Recreational, Equipment and Consulting, Series 97-D, Class A1, 6.90%, 3/15/29 ........ 208 2,000 Harley-Davidson Eaglemark Motorcycle Trust, Series 00-1, Class A2, 7.14%, 3/15/06 ........ 2,083 2,400 Household Automotive Trust, Series 00-1, Class A4, 7.48%, 12/18/06 ........................ 2,543 161 Key Auto Finance Trust, Series 99-1 Class A4, 5.83%, 1/15/07 ........ 166 983 SLM Student Loan Trust, Series 99-1, Class A1T, 2.58%, 4/25/08 ......................... 991 339 The Money Store Home Equity Trust, Series 96-B, Class A8, 7.91%, 5/15/24 ......................... 354 400 The Money Store Home Equity Trust, Series 96-A, Class A8, 7.66%, 8/15/26 ......................... 419
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Asset Backed Securities, continued: $2,000 Union Acceptance Corp., Series 98-B, Class A5, 6.02%, 1/9/06 ... $ 2,037 -------- Total Asset Backed Securities 14,839 -------- Common Stocks (58.1%): Business Equipment & Services (1.5%): 34 Automatic Data Processing, Inc. ... 1,485 45 Electronic Data Systems Corp. ..... 1,677 48 Paychex, Inc. ..................... 1,506 30 Weatherford International Ltd. (b) ............................. 1,298 -------- 5,966 -------- Capital Goods (3.8%): 22 Boeing Co. ........................ 984 21 Cooper Cameron Corp. (b) .......... 1,001 44 Crane Co. ......................... 1,112 22 Diebold, Inc. ..................... 814 226 General Electric Co. .............. 6,556 29 Johnson Controls, Inc. ............ 2,390 11 SPX Corp. (b) ..................... 1,277 75 Tyco International Ltd. ........... 1,009 -------- 15,143 -------- Consumer Durable (2.0%): 57 Dana Corp. ........................ 1,062 36 Danaher Corp. ..................... 2,417 12 Eaton Corp. ....................... 844 37 General Motors Corp. .............. 1,999 33 Lear Corp. (b) .................... 1,526 -------- 7,848 -------- Consumer Non-Durable (5.3%): 88 Coca-Cola Co. ..................... 4,941 39 Dole Food Co., Inc. ............... 1,112 38 Interstate Bakeries Corp. ......... 1,084 22 Kimberly-Clark Corp. .............. 1,385 23 Kraft Foods, Inc. ................. 937 61 McDonald's Corp. .................. 1,740 32 Pepsi Bottling Group, Inc. ........ 990 92 Philip Morris Co. ................. 4,040 21 Proctor & Gamble Co. .............. 1,841 60 Sysco Corp. ....................... 1,620 102 Tyson Foods, Inc., Class A ........ 1,576 -------- 21,266 -------- Consumer Services (2.6%): 160 AOL Time Warner, Inc. (b) ......... 2,361 33 Clear Channel Communications, Inc. (b) ............................. 1,056 44 Comcast Corp., Class A (b) ........ 1,059 25 Omnicom Group, Inc. ............... 1,165
Continued One Group Balanced Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 59 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Consumer Services, continued: 85 Viacom, Inc., Class B (b) ......... $ 3,790 61 Walt Disney Co. ................... 1,144 -------- 10,575 -------- Energy (3.7%): 26 ChevronTexaco Corp. ............... 2,302 63 El Paso Corp. ..................... 1,295 231 Exxon Mobil Corp. ................. 9,471 19 Murphy Oil Corp. .................. 1,564 -------- 14,632 -------- Financial Services (11.5%): 50 American Express Co. .............. 1,829 85 American International Group, Inc. ............................ 5,778 57 Bank of America Corp. ............. 3,989 22 BB&T Corp. ........................ 838 43 Charter One Financial, Inc. ....... 1,487 190 Citigroup, Inc. ................... 7,360 91 FleetBoston Financial Corp. ....... 2,937 78 Freddie Mac ....................... 4,769 35 Hartford Financial Services Group, Inc. ............................ 2,109 89 JP Morgan Chase & Co. ............. 3,022 22 Lincoln National Corp. ............ 916 25 Marsh & McLennan Co. .............. 2,429 57 Morgan Stanley Dean Witter & Co. ............................. 2,437 88 Providian Financial Corp. ......... 518 49 Southtrust Corp. .................. 1,280 24 SunTrust Banks, Inc. .............. 1,635 60 Wells Fargo & Co. ................. 3,017 -------- 46,350 -------- Health Care (8.0%): 50 Abbott Laboratories ............... 1,872 46 Amgen, Inc. (b) ................... 1,931 46 Baxter International, Inc. ........ 2,042 78 Bristol-Myers Squibb Co. .......... 2,015 15 Cigna Corp. ....................... 1,505 23 Guidant Corp. (b) ................. 695 38 Johnson & Johnson ................. 1,975 37 MedImmune, Inc. (b) ............... 969 59 Medtronic, Inc. ................... 2,517 35 Merck & Co., Inc. ................. 1,768 204 Pfizer, Inc. ...................... 7,131 50 Pharmacia Corp. ................... 1,857 56 Schering-Plough Corp. ............. 1,370 52 Waters Corp. (b) .................. 1,385 58 Wyeth ............................. 2,993 -------- 32,025 --------
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Multi-Industry (1.4%): 67 Honeywell International, Inc. ..... $ 2,352 26 Minnesota Mining & Manufacturing Co. ............................. 3,186 -------- 5,538 -------- Raw Materials (1.8%): 76 Alcoa, Inc. ....................... 2,508 31 Cabot Corp. ....................... 893 0 Cabot Microelectronics Corp. (b) ............................. 0 71 Crompton Corp. .................... 907 38 Sigma-Aldrich Corp. ............... 1,898 15 Temple-Inland, Inc. ............... 848 -------- 7,054 -------- Retail (4.2%): 33 Bed Bath & Beyond, Inc. (b) ....... 1,229 52 Brinker International, Inc. (b) ... 1,646 64 Home Depot, Inc. .................. 2,340 76 Limited, Inc. ..................... 1,621 45 Target Corp. ...................... 1,715 107 Wal-Mart Stores, Inc. ............. 5,879 65 Walgreen Co. ...................... 2,528 -------- 16,958 -------- Shelter (0.3%): 26 Pentair, Inc. ..................... 1,266 -------- Technology (7.5%): 138 ADC Telecommunications, Inc. (b) ............................. 315 90 Applied Materials, Inc. (b) ....... 1,714 0 Avaya, Inc. (b) ................... 0 160 Cisco Systems, Inc. (b) ........... 2,227 57 Comverse Technology, Inc. (b) ..... 526 37 Dell Computer Corp. (b) ........... 966 48 EMC Corp. (b) ..................... 364 55 Hewlett-Packard Co. ............... 842 44 IBM Corp. ......................... 3,153 201 Intel Corp. ....................... 3,675 31 Linear Technology Corp. ........... 963 150 Microsoft Corp. (b) ............... 8,197 59 Motorola, Inc. .................... 849 113 Oracle Corp. (b) .................. 1,066 38 Qualcomm, Inc. (b) ................ 1,033 35 Rational Software Corp. (b) ....... 291 51 Sun Microsystems, Inc. (b) ........ 254 41 Symantec Corp. (b) ................ 1,359 56 Texas Instruments, Inc. ........... 1,319 35 Xilinx, Inc. (b) .................. 792 -------- 29,905 --------
Continued One Group Balanced Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 60 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Common Stocks, continued: Transportation (0.5%): 17 Canadian National Railway Co. ..... $ 895 20 United Parcel Service, Inc., Class B ............................... 1,227 -------- 2,122 -------- Utilities (4.0%): 48 AT&T Corp. ........................ 517 65 BellSouth Corp. ................... 2,033 33 CenturyTel, Inc. .................. 960 47 Energy East Corp. ................. 1,062 41 FPL Group, Inc. ................... 2,476 29 Kinder Morgan, Inc. ............... 1,105 64 Pinnacle West Capital Corp. ....... 2,509 105 SBC Communications, Inc. .......... 3,212 55 Verizon Communications ............ 2,197 -------- 16,071 -------- Total Common Stocks 232,719 -------- Corporate Bonds (13.8%): Airlines (0.5%): $1,963 United Airlines, 7.19%, 4/1/11 .... 1,840 -------- Banking, Finance & Insurance (7.3%): 1,000 Associates Corp., 8.58%, 11/23/04 ........................ 1,103 1,800 Bank of America Corp., 7.80%, 2/15/10 ......................... 2,017 500 Boeing Capital Corp., 7.10%, 9/27/05 ......................... 541 750 Capital One Bank Co., 6.88%, 2/1/06 .......................... 742 1,000 CIT Group, Inc., 6.88%, 2/16/05 ... 962 800 Citigroup Inc., 7.25%, 10/1/10 .... 872 1,600 Credit Suisse First Boston USA, Inc., 6.50%, 1/15/12 ............ 1,615 0 Discover Card Master Trust I, 6.79%, 4/16/10 .................. 0 250 Dow Capital BV, 8.50%, 6/8/10, Putable 6/8/05 @ 100 ............ 277 2,200 First Hawaiian, Inc., Series A, 6.93%, 12/1/03 (b)(c) ........... 2,303 440 Fleet Financial Group, 7.38%, 12/1/09 ......................... 478 1,800 Ford Motor Credit Co., 7.38%, 2/1/11 .......................... 1,826 550 General Electric Cap Corp., 5.88%, 2/15/12 ......................... 546
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Corporate Bonds, continued: Banking, Finance & Insurance, continued: 500 General Electric Capital Corp., 8.63%, 6/15/08 .................. $ 587 $1,250 GMAC, 8.25%, 2/24/04 .............. $ 1,333 1,500 GMAC, 7.25%, 3/2/11 ............... 1,534 2,000 Goldman Sachs Group, Inc., 7.20%, 3/1/07 (b)(c) ................... 2,167 2,000 Household Finance Corp., 8.00%, 7/15/10 ......................... 2,116 250 Household Finance Corp., 6.75%, 5/15/11 ......................... 246 580 JP Morgan & Co., 6.25%, 1/15/09 ... 588 450 Lehman Brothers Holdings, 6.63%, 1/18/12 ......................... 457 1,800 Morgan Stanley Dean Witter, 6.75%, 4/15/11 ......................... 1,855 1,850 National Rural Utilities, 6.00%, 5/15/06 ......................... 1,902 250 News America, Inc., 6.75%, 1/9/38 .......................... 248 2,000 Nynex Capital Funding, 8.23%, 10/15/09 ........................ 2,211 480 Residential Funding Mortgage Securities, Series 96-S3, Class A5, 7.25%, 1/25/26 .............. 495 -------- 29,021 -------- Cable Television (0.1%): 300 Cox Communications, Inc., 7.75%, 11/1/10 ......................... 286 -------- Capital Goods (0.1%): 600 Tyco International Group, 6.25%, 6/15/03 ......................... 522 -------- Consumer Durable (0.8%): 500 Avon Products, 7.15%, 11/15/09 .... 550 1,200 DaimlerChrysler, 7.20%, 9/1/09 .... 1,254 1,500 General Motors, 7.20%, 1/15/11 .... 1,530 -------- 3,334 -------- Consumer Services (1.0%): 2,400 Rental Car Finance, 6.45%, 8/25/05 (b)(c) .......................... 2,476 1,400 Time Warner, Inc., 9.13%, 1/15/13 ......................... 1,552 -------- 4,028 --------
Continued One Group Balanced Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 61 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- Corporate Bonds, continued: Energy (1.2%): $ 500 Constellation Energy Group, 6.35%, 4/1/07 .......................... $ 518 350 Dominion Resource, 6.25%, 6/30/12 ......................... 350 400 DTE Energy Co., 6.65%, 4/15/09 .... 417 1,250 Occidental Petroleum Corp., 9.25%, 8/1/19 .......................... 1,530 500 Union Pacific Co., 7.60%, 5/1/05 .......................... 544 1,400 Union Pacific Co., 6.65%, 1/15/11 ......................... 1,472 -------- 4,831 -------- Railroads (0.1%): 350 Norfolk Southern, 7.05%, 5/1/37 ... 369 -------- Retail (0.9%): 1,000 Albertson's, Inc., 6.95%, 8/1/09 .......................... 1,066 1,000 Dayton Hudson Corp., 7.25%, 9/1/04 .......................... 1,077 1,400 Kroger Co., 8.05%, 2/1/10 ......... 1,558 -------- 3,701 -------- Telecommunications (0.5%): 360 British Telecom, 8.38%, 12/15/10 ........................ 392 300 Comcast Cable Communications, 8.38%, 5/1/07 ................... 308 270 Deutsche Telekom, 8.00%, 6/15/10 ......................... 269 360 France Telecom, 8.25%, 3/1/11 ..... 329 350 Qwest Capital Funding, 7.90%, 8/15/10 ......................... 200 500 Sprint Capital Corp., 6.00%, 1/15/07 ......................... 390 -------- 1,888 -------- Utilities (1.3%): 375 Columbia Gas System, 6.80%, 11/28/05 ........................ 383 2,000 Exelon Corp, 6.75%, 5/1/11 ........ 2,092 2,500 Hydro Quebec, 6.52%, 2/23/06 ...... 2,673 550 Worldcom, Inc., 8.25%, 5/15/10 .... 85 -------- 5,233 -------- Total Corporate Bonds 55,053 -------- U.S. Government Agencies (0.4%): Tennessee Valley Authority (0.4%): 1,500 5.00%, 12/18/03 ................... 1,545 -------- Total U.S. Government Agencies 1,545 -------- U.S. Government Agency Mortgages (15.5%): Fannie Mae (7.6%): 2,837 7.24%, 10/1/03, Pool #73712 ....... 2,932 233 8.15%, 4/25/06, Series 1991-37, Class H ......................... 243
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- U.S. Government Agency Mortgages, continued: Fannie Mae, continued: $2,114 7.13%, 7/1/06, Pool #381781 ....... $ 2,306 1,058 6.94%, 12/1/06, Pool #73798 ....... 1,146 184 7.00%, 9/1/07, Pool #185265 ....... 194 854 6.79%, 11/1/07, Pool #313832 ...... 922 1,251 6.53%, 12/1/07, Pool #375568 ...... 1,336 800 8.30%, 10/25/08, Series 93-197, Class SC, IF* ................... 869 560 7.50%, 8/1/09, Pool #292020 ....... 595 1,350 6.25%, 2/1/11 ..................... 1,421 332 6.50%, 5/1/11, Pool #337195 ....... 347 844 6.50%, 4/1/13, Pool #414513 ....... 881 442 7.00%, 6/1/13, Pool #427488 ....... 466 1,956 6.50%, 6/25/13, Series 94-1, Class K ............................... 2,046 1,497 6.00%, 1/1/14, Pool #440777 ....... 1,541 1,000 6.00%, 9/25/14, Series 01-71, Class QC .............................. 1,029 1,388 5.50%, 3/15/15, Series 2368, Class OE .............................. 1,391 578 8.50%, 11/1/18, Pool #313280 ...... 629 243 8.50%, 1/25/20, Series 90-7, Class B ............................... 261 112 9.50%, 4/25/20, Series 90-35, Class E ............................... 125 204 7.00%, 7/25/20, Series 90-76, Class G ............................... 217 510 8.50%, 9/25/20, Series 90-106, Class J ......................... 560 0 7.50%, 4/25/21, Series 92-178, Class D ......................... 0 112 8.00%, 7/25/21, Series 91-73, Class A ............................... 121 140 5.76%, 8/25/21, Series 93-38, Class V ............................... 141 86 6.85%, 8/25/21, Series G93-17, Class HB ........................ 87 800 7.00%, 9/15/21, Series 1559 ....... 829 860 7.50%, 7/25/22, Series G92-35, Class E ......................... 917 284 7.50%, 10/25/22, Series 92-195, Class C ......................... 302 866 8.00%, 11/1/22, Pool #124555 ...... 930 78 8.00%, 6/1/24, Pool #250085 ....... 84 130 8.00%, 6/1/24, Pool #270402 ....... 139 247 9.00%, 8/1/24, Pool #250114 ....... 272 153 9.50%, 11/18/24, Series 97-88, Class BA ........................ 155
Continued One Group Balanced Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 62 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- U.S. Government Agency Mortgages, continued: Fannie Mae, continued: $ 221 9.00%, 5/18/25, Series 98-2, Class KC .............................. $ 226 352 7.00%, 7/1/25, Pool #317252 ....... 366 369 6.50%, 2/1/26, Pool #337115 ....... 379 360 7.00%, 3/1/26, Pool #365488 ....... 375 262 7.00%, 5/1/26, Pool #346269 ....... 273 177 7.50%, 5/1/26, Pool #344916 ....... 186 300 6.00%, 6/25/26, Series 99-27, Class G ............................... 298 148 7.50%, 11/1/26, Pool #363626 ...... 156 694 6.50%, 2/1/28, Pool #417157 ....... 712 1,560 6.00%, 8/1/28, Pool #436125 ....... 1,570 -------- 29,975 -------- Freddie Mac (5.0%): 1 9.00%, 5/1/06, Pool #B0-0282 ...... 1 31 8.00%, 3/1/08, Pool #E45796 ....... 32 825 7.00%, 11/15/08, Series 1275, Class VJ .............................. 831 81 9.00%, 8/1/09, Pool #279063 ....... 87 557 8.00%, 10/1/10, Pool #G10518 ...... 590 22 7.00%, 12/15/11, Series 1914, Class AC .............................. 22 281 7.00%, 1/1/12, Pool #E66116 ....... 296 531 6.50%, 3/1/13, Pool #E69466 ....... 555 467 6.50%, 6/1/13, Pool #E00552 ....... 487 391 7.00%, 6/1/13, Pool #E00554 ....... 412 1,565 6.00%, 4/1/14, Pool #E76469 ....... 1,612 1,000 6.00%, 12/15/16, Series 2394, Class MC .............................. 1,016 273 8.00%, 6/15/20, Series 50, Class I ............................... 294 107 10.50%, 10/1/20, Pool #D24679 ..... 122 133 8.50%, 6/15/21, Pool #1087-I ...... 143 120 6.00%, 9/15/21, Series 1136, Class H ............................... 123 1,486 6.50%, 11/15/22, Pool #1152 ....... 1,566 2,000 7.15%, 1/15/23, Pool #1517-I ...... 2,129 190 7.00%, 2/15/23, Series 1532, Class C ............................... 198 500 6.50%, 5/25/23, Series 32, Class PK .............................. 527 119 8.00%, 4/1/25, Pool #C00401 ....... 127 304 8.00%, 5/1/25, Pool #C80313 ....... 325 102 8.00%, 5/1/25, Pool #D60455 ....... 109 268 6.50%, 2/1/26, Pool #D68616 ....... 275 407 6.50%, 2/1/26, Pool #D68124 ....... 418 158 7.00%, 2/1/26, Pool #D69343 ....... 165 165 7.00%, 3/1/26, Pool #D69430 ....... 171 224 7.50%, 5/1/26, Pool #C00460 ....... 237
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- U.S. Government Agency Mortgages, continued: Freddie Mac, continued: $ 103 8.50%, 7/1/26, Pool #C00472 ....... $ 111 547 7.00%, 10/1/26, Pool #D75494 ...... 569 201 7.50%, 8/1/27, Pool #C00542 ....... 212 734 6.00%, 10/15/27, Series 2097, Class PX .............................. 754 1,000 6.00%, 1/15/28, Series 2136, Class PE .............................. 1,022 495 8.50%, 7/1/28, Gold Pool #G00981 ......................... 533 1,565 6.00%, 8/1/28, Pool #C13638 ....... 1,576 672 6.00%, 11/15/28, Series 2091, Class GB .............................. 662 1,592 8.00%, 11/15/28, Series 2097, Class PD .............................. 1,847 -------- 20,156 -------- Government National Mortgage Assoc. (2.9%): 67 7.50%, 8/15/07, Pool #329613 ...... 71 175 6.50%, 7/15/08, Pool #349693 ...... 184 778 7.00%, 7/15/08, Pool #348872 ...... 828 119 7.00%, 7/15/08, Pool #326444 ...... 127 19 6.50%, 3/15/09, Pool #367398 ...... 20 532 6.50%, 5/15/09, Pool #366779 ...... 561 296 5.50%, 4/20/11, Pool #2222 ........ 303 4 13.50%, 5/15/11, Pool #047241...... 5 1,281 6.50%, 9/15/13, Pool #468228 ...... 1,343 8 12.00%, 3/15/14, Pool #109220...... 9 4 13.50%, 9/15/14, Pool #119582...... 5 34 8.00%, 4/15/17, Pool #192100 ...... 37 38 10.00%, 7/15/18, Pool #248404...... 42 16 8.00%, 5/15/22, Pool #329176 ...... 17 572 8.50%, 6/15/22, Pool #323423 ...... 622 331 8.50%, 12/15/22, Pool #780708...... 360 43 6.50%, 1/15/24, Pool #376656 ...... 45 355 7.00%, 4/15/24, Pool #355120 ...... 371 54 8.00%, 4/15/24, Pool #376038 ...... 58 183 8.00%, 8/15/24, Pool #394024 ...... 196 409 7.50%, 6/15/25, Pool #401860 ...... 434 642 7.00%, 8/15/25, Pool #413007 ...... 671 628 8.50%, 9/20/25, Pool #412336 ...... 676 501 6.50%, 4/15/26, Pool #424185 ...... 514 581 6.50%, 4/15/26, Pool #416192 ...... 598 342 7.00%, 5/15/26, Pool #375344 ...... 357 35 7.50%, 5/15/26, Pool #375345 ...... 37 204 7.50%, 5/15/26, Pool #408313 ...... 217 141 8.00%, 5/15/26, Pool #426783 ...... 150 136 8.50%, 1/15/27, Pool #432266 ...... 147 278 8.00%, 9/15/27, Pool #451932 ...... 297 616 6.50%, 3/15/28, Pool #430634 ...... 632
Continued One Group Balanced Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 63 Report
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- U.S. Government Agency Mortgages, continued: Government National Mortgage Assoc., continued: $ 330 8.00%, 7/20/28, Pool #2619 ........ $ 351 1,382 6.00%, 10/20/28, Pool #2657 ....... 1,384 -------- 11,669 -------- Total U.S. Government Agency Mortgages 61,800 -------- U.S. Treasury Obligations (7.8%): U.S. Treasury Bonds (4.4%): 11,000 10.38%, 11/15/12 .................. 14,141 3,200 7.25%, 5/15/16 .................... 3,772 -------- 17,913 -------- U.S. Treasury Inflation Protected Bonds (1.2%): 4,000 3.88%, 1/15/09 .................... 4,655 --------
Shares or Principal Amount Security Description Value --------- ----------------------------------- -------- U.S. Treasury Obligations, continued: U.S. Treasury STRIPS (2.2%): $4,000 5/15/09 ........................... $ 2,905 1,500 5/15/10 ........................... 1,021 9,500 2/15/15 ........................... 4,702 -------- 8,628 -------- Total U.S. Treasury Obligations 31,196 -------- Investment Companies (0.5%): 1,957 One Group Prime Money Market, Class I ............................... 1,957 -------- Total Investment Companies 1,957 -------- Total (Cost $392,741)(a) $399,109 ========
------------ Percentages indicated are based on net assets of $399,763. (a) Represents cost for financial reporting purposes and differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 42,572 Unrealized depreciation...................... (36,204) -------- Net unrealized appreciation (depreciation)... $ 6,368 ========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. (c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. * The interest rate for this variable rate bond, which will change periodically, is based upon prime rates or an index of market rates. The rate reflected on the Schedule of Portfolio Investments is the rate in effect at June 30, 2002. Amounts shown as 0 rounded to less than 1,000. Inverse Floaters (IF) represent securities that pay interest at a rate that increases (decreases) with a decline (increase) in a specified index. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 64 Report One Group Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks (98.7%): Business Equipment & Services (2.1%): 57 Allied Waste Industries, Inc. (b) .......................... $ 544 50 Apollo Group, Inc., Class A (b) .......................... 1,956 178 Automatic Data Processing, Inc. ......................... 7,762 45 BJ Services Co. (b) ............ 1,525 49 Cintas Corp. ................... 2,413 49 Computer Sciences Corp. (b) .... 2,348 50 Convergys Corp. (b) ............ 968 18 Deluxe Corp. ................... 709 138 Electronic Data Systems Corp. ........................ 5,115 42 Equifax, Inc. .................. 1,124 220 First Data Corp. ............... 8,175 55 Fiserv, Inc. (b) ............... 2,018 53 H & R Block, Inc. .............. 2,434 104 Novell, Inc. (b) ............... 335 43 NVIDIA Corp. (b) ............... 738 89 Office Depot, Inc. (b) ......... 1,489 108 Paychex, Inc. .................. 3,373 69 Pitney Bowes, Inc. ............. 2,747 33 R.R. Donnelley & Sons Co. ...... 897 51 Robert Half International, Inc. (b) .......................... 1,180 42 Sabre Group Holdings, Inc. (b) .......................... 1,487 178 Waste Management, Inc. ......... 4,627 172 Yahoo, Inc. (b) ................ 2,536 ---------- 56,500 ---------- Capital Goods (5.6%): 21 American Standard Cos., Inc. (b) .......................... 1,567 241 Boeing Co. ..................... 10,849 99 Caterpillar, Inc. .............. 4,838 17 Crane Co. ...................... 436 12 Cummins, Inc. .................. 394 68 Deere & Co. .................... 3,273 58 Dover Corp. .................... 2,039 121 Emerson Electric Co. ........... 6,475 2,856 General Electric Co. (c) ....... 82,972 88 Illinois Tool Works, Inc. ...... 6,010 49 Ingersoll-Rand Co. ............. 2,217 25 Johnson Controls, Inc. ......... 2,078 56 Molex, Inc. .................... 1,865 17 Navistar International Corp. ... 556 33 Paccar, Inc. ................... 1,478 34 Parker-Hannifin Corp. .......... 1,617 50 Thermo Electron Corp. (b) ...... 817 574 Tyco International Ltd. ........ 7,753 136 United Technologies Corp. ...... 9,228 27 W.W. Grainger, Inc. ............ 1,348 ---------- 147,810 ---------- Consumer Durable (1.9%): 30 AutoZone, Inc. (b) ............. 2,343 23 Black & Decker Corp. ........... 1,114 26 Brunswick Corp. ................ 725
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Consumer Durable, continued: 21 Cooper Tire & Rubber Co. ....... $ 432 43 Dana Corp. ..................... 791 43 Danaher Corp. .................. 2,879 161 Delphi Automotive Systems Corp. ........................ 2,128 84 Eastman Kodak Co. .............. 2,444 20 Eaton Corp. .................... 1,468 521 Ford Motor Co. ................. 8,337 161 General Motors Corp. ........... 8,617 50 Genuine Parts Co. .............. 1,746 47 Goodyear Tire & Rubber Co. ..... 878 87 Harley-Davidson, Inc. .......... 4,460 26 ITT Industries, Inc. ........... 1,841 56 Leggett & Platt, Inc. .......... 1,318 139 Masco Corp. .................... 3,770 22 Maytag Corp. ................... 950 17 Snap-On, Inc. .................. 496 25 Stanley Works .................. 1,005 38 Visteon Corp. .................. 534 20 Whirlpool Corp. ................ 1,276 ---------- 49,552 ---------- Consumer Non-Durable (9.8%): 10 Adolph Coors Co., Class B ...... 646 17 Alberto-Culver Co., Class B .... 794 19 American Greetings Corp., Class A ............................ 312 252 Anheuser-Busch Co., Inc. ....... 12,596 187 Archer-Daniels-Midland Co. ..... 2,395 68 Avon Products, Inc. ............ 3,550 16 Ball Corp. ..................... 677 15 Bemis Co., Inc. ................ 723 20 Brown-Forman Corp., Class B .... 1,354 118 Campbell Soup Co. .............. 3,261 66 Clorox Co. ..................... 2,737 714 Coca-Cola Co. .................. 39,974 128 Coca-Cola Enterprises, Inc. .... 2,835 157 Colgate Palmolive Co. .......... 7,870 154 ConAgra Foods, Inc. ............ 4,270 43 Fortune Brands, Inc. ........... 2,417 105 General Mills, Inc. ............ 4,641 304 Gillette Co. ................... 10,287 101 H.J. Heinz Co. ................. 4,139 39 Hershey Foods Corp. ............ 2,452 27 International Flavors & Fragrances, Inc. ............. 880 139 International Paper Co. ........ 6,048 37 Jones Apparel Group, Inc. (b) .......................... 1,388 118 Kellogg Co. .................... 4,216 149 Kimberly-Clark Corp. ........... 9,246 366 McDonald's Corp. ............... 10,401 77 Newell Rubbermaid, Inc. ........ 2,690
Continued One Group Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 65 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Consumer Non-Durable, continued: 45 Pactiv Corp. (b) ............... $ 1,082 81 Pepsi Bottling Group, Inc. ..... 2,502 508 PepsiCo, Inc. .................. 24,493 615 Philip Morris Co. .............. 26,860 374 Proctor & Gamble Co. ........... 33,355 17 Reebok International Ltd. (b) .......................... 504 225 Sara Lee Corp. ................. 4,654 38 SuperValu, Inc. ................ 939 191 Sysco Corp. .................... 5,190 17 Tupperware Corp. ............... 348 164 Unilever N V ................... 10,645 49 UST, Inc. ...................... 1,651 65 Wm. Wrigley Junior Co. ......... 3,585 ---------- 258,607 ---------- Consumer Services (4.3%): 1,280 AOL Time Warner, Inc. (b) ...... 18,824 169 Carnival Corp. ................. 4,668 300 Cendant Corp. (b) .............. 4,761 176 Clear Channel Communications, Inc. (b) ..................... 5,638 272 Comcast Corp., Class A (b) ..... 6,480 24 Dow Jones & Co., Inc. .......... 1,173 77 Gannett Co., Inc. .............. 5,816 33 Harrah's Entertainment, Inc. (b) .......................... 1,462 50 Hasbro, Inc. ................... 675 106 Hilton Hotels Corp. ............ 1,480 26 International Game Technologies (b) .......................... 1,468 110 Interpublic Group of Cos., Inc. ......................... 2,719 24 Knight-Ridder, Inc. ............ 1,507 70 Marriott International, Inc., Class A ...................... 2,656 125 Mattel, Inc. ................... 2,643 56 McGraw-Hill Co., Inc. .......... 3,329 14 Meredith Corp. ................. 547 44 New York Times Co., Class A .... 2,243 54 Omnicom Group, Inc. ............ 2,463 57 Starwood Hotels & Resorts Worldwide, Inc. .............. 1,885 87 Tribune Co. .................... 3,764 66 Univision Communications, Inc. (b) .......................... 2,066 508 Viacom, Inc., Class B (b) ...... 22,539 586 Walt Disney Co. ................ 11,084 85 YUM! Brands, Inc. (b) .......... 2,492 ---------- 114,382 ---------- Energy (7.6%): 26 Amerada Hess Corp. ............. 2,110 71 Anadarko Petroleum Corp. ....... 3,518 41 Apache Corp. ................... 2,373 20 Ashland Co., Inc. .............. 807 97 Baker Hughes, Inc. ............. 3,228 58 Burlington Resources, Inc. ..... 2,197
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Energy, continued: 307 ChevronTexaco Corp. ............ $ 27,152 180 Conoco, Inc. ................... 5,007 45 Devon Energy Corp. ............. 2,214 166 El Paso Corp. .................. 3,422 33 EOG Resources, Inc. ............ 1,324 1,949 Exxon Mobil Corp. (c) .......... 79,760 125 Halliburton Co. ................ 1,996 29 Kerr-McGee Corp. ............... 1,543 89 Marathon Oil Corp. ............. 2,414 18 McDermott International, Inc. (b) .......................... 147 116 Mirant Corp. (b) ............... 843 41 Nabors Industries Ltd. (b) ..... 1,456 39 Noble Corp. (b) ................ 1,492 108 Occidental Petroleum Corp. ..... 3,232 110 Phillips Petroleum Co. ......... 6,478 27 Rowan Cos., Inc. ............... 579 610 Royal Dutch Petroleum Co. ...... 33,739 166 Schlumberger Ltd. .............. 7,713 22 Sunoco, Inc. ................... 781 92 Transocean Sedco Forex, Inc. ... 2,858 70 Unocal Corp. ................... 2,597 ---------- 200,980 ---------- Financial Services (19.3%): 75 ACE Ltd. ....................... 2,381 149 AFLAC, Inc. .................... 4,765 204 Allstate Corp. ................. 7,540 30 AMBAC Financial Group, Inc. .... 2,047 382 American Express Co. ........... 13,883 751 American International Group, Inc. ......................... 51,238 104 AmSouth Bancorp ................ 2,326 78 Aon Corp. ...................... 2,305 442 Bank of America Corp. .......... 31,128 209 Bank of New York Co., Inc. ..... 7,061 337 Bank One Corp. (d) ............. 12,981 138 BB&T Corp. ..................... 5,317 29 Bear Stearns Co., Inc. ......... 1,753 63 Capital One Financial Corp. .... 3,858 394 Charles Schwab Corp. ........... 4,414 65 Charter One Financial, Inc. .... 2,221 49 Chubb Corp. .................... 3,488 47 Cincinnati Financial Corp. ..... 2,170 1,479 Citigroup, Inc. ................ 57,322 51 Comerica, Inc. ................. 3,110 147 Concord EFS, Inc. (b) .......... 4,422 99 Conseco, Inc. (b) .............. 198 36 Countrywide Credit Industries, Inc. ......................... 1,714 287 Fannie Mae ..................... 21,137 169 Fifth Third Bancorp ............ 11,281 36 First Tennessee National Corp. ........................ 1,396
Continued One Group Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 66 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Financial Services, continued: 301 FleetBoston Financial Corp. .... $ 9,735 75 Franklin Resources, Inc. ....... 3,210 200 Freddie Mac .................... 12,225 45 Golden West Financial Corp. .... 3,061 71 Hartford Financial Services Group, Inc. .................. 4,229 131 Household International, Inc. ......................... 6,521 71 Huntington Bancshares, Inc. .... 1,380 43 Jefferson-Pilot Corp. .......... 2,029 85 John Hancock Financial Services, Inc. ......................... 2,979 572 JP Morgan Chase & Co. .......... 19,410 122 KeyCorp ........................ 3,342 70 Lehman Brothers Holding, Inc. ......................... 4,385 54 Lincoln National Corp. ......... 2,257 54 Loews Corp. .................... 2,879 79 Marsh & McLennan Co. ........... 7,603 61 Marshall & Ilsley Corp. ........ 1,886 42 MBIA, Inc. ..................... 2,400 245 MBNA Corp. ..................... 8,096 127 Mellon Financial Corp. ......... 3,984 248 Merrill Lynch & Co., Inc. ...... 10,041 203 MetLife, Inc. .................. 5,839 30 MGIC Investment Corp. .......... 2,060 44 Moody's Corp. .................. 2,206 317 Morgan Stanley Dean Witter & Co. .......................... 13,640 175 National City Corp. ............ 5,819 64 Northern Trust Corp. ........... 2,808 82 PNC Financial Services Group ... 4,267 63 Progressive Corp. .............. 3,657 83 Providian Financial Corp. ...... 488 66 Regions Financial Corp. ........ 2,317 37 SAFECO Corp. ................... 1,135 45 SLM Corp. ...................... 4,326 100 Southtrust Corp. ............... 2,603 60 St. Paul Co., Inc. ............. 2,330 93 State Street Corp. ............. 4,178 64 Stilwell Financial, Inc. ....... 1,163 82 SunTrust Banks, Inc. ........... 5,571 85 Synovus Financial Corp. ........ 2,336 36 T. Rowe Price Group, Inc. ...... 1,169 35 Torchmark Corp. ................ 1,333 549 U.S. Bancorp ................... 12,829 58 Union Planters Corp. ........... 1,886 70 UnumProvident Corp. ............ 1,777 393 Wachovia Corp. ................. 15,018 280 Washington Mutual, Inc. ........ 10,391 492 Wells Fargo & Co. .............. 24,613 39 XL Capital, Ltd., Class A ...... 3,298
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Financial Services, continued: 26 Zions Bancorp .................. $ 1,374 ---------- 513,539 ---------- Health Care (13.6%): 449 Abbott Laboratories ............ 16,887 42 Aetna, Inc. .................... 2,012 37 Allergan, Inc. ................. 2,480 30 AmerisourceBergen Corp. ........ 2,291 299 Amgen, Inc. (b) ................ 12,506 15 Bausch & Lomb, Inc. ............ 524 173 Baxter International, Inc. ..... 7,679 74 Becton, Dickinson & Co. ........ 2,558 43 Biogen, Inc. (b) ............... 1,768 77 Biomet, Inc. ................... 2,089 117 Boston Scientific Corp. (b) .... 3,421 557 Bristol-Myers Squibb Co. ....... 14,317 15 C.R. Bard, Inc. ................ 855 130 Cardinal Health, Inc. .......... 7,972 55 Chiron Corp. (b) ............... 1,930 40 Cigna Corp. .................... 3,944 323 Eli Lilly & Co. ................ 18,223 51 Forest Laboratories, Inc. (b) .......................... 3,635 61 Genzyme Corp. (b) .............. 1,183 88 Guidant Corp. (b) .............. 2,658 148 HCA-The Healthcare Corp. ....... 7,017 69 Health Management Associates, Inc., Class A (b) ............ 1,397 113 HealthSouth Corp. (b) .......... 1,446 49 Humana, Inc. (b) ............... 760 159 Immunex Corp. (b) .............. 3,545 83 IMS Health, Inc. ............... 1,490 865 Johnson & Johnson .............. 45,229 71 King Pharmaceuticals, Inc. (b) .......................... 1,586 29 Manor Care, Inc. (b) ........... 663 83 McKesson HBOC, Inc. ............ 2,702 72 MedImmune, Inc. (b) ............ 1,898 349 Medtronic, Inc. ................ 14,952 651 Merck & Co., Inc. .............. 32,969 14 Millipore Corp. ................ 444 1,795 Pfizer, Inc. ................... 62,818 372 Pharmacia Corp. ................ 13,918 34 Quintiles Transnational Corp. (b) .......................... 426 421 Schering-Plough Corp. .......... 10,366 25 St. Jude Medical, Inc. (b) ..... 1,870 57 Stryker Corp. .................. 3,035 94 Tenet Healthcare Corp. (b) ..... 6,701 89 UnitedHealth Group, Inc. ....... 8,102 38 Waters Corp. (b) ............... 1,008 31 Watson Pharmaceuticals, Inc. (b) .......................... 773 42 Wellpoint Health Networks, Inc. (b) .......................... 3,243
Continued One Group Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 67 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Health Care, continued: 381 Wyeth .......................... $ 19,517 56 Zimmer Holdings, Inc. (b) ...... 1,990 ---------- 358,797 ---------- Multi-Industry (0.9%): 273 Corning, Inc. (b) .............. 969 235 Honeywell International, Inc. ......................... 8,279 112 Minnesota Mining & Manufacturing Co. .......................... 13,764 40 Textron, Inc. .................. 1,886 ---------- 24,898 ---------- Raw Materials (2.7%): 65 Air Products and Chemicals, Inc. ......................... 3,296 92 Alcan Aluminum Ltd. ............ 3,464 243 Alcoa, Inc. .................... 8,065 23 Allegheny Technologies, Inc. ... 365 32 Avery Dennison Corp. ........... 1,981 29 B. F. Goodrich Co. ............. 801 156 Barrick Gold Corp. ............. 2,953 261 Dow Chemical Co. ............... 8,968 285 Du Pont (EI) de Nemours & Co. .......................... 12,673 22 Eastman Chemical Co. ........... 1,042 37 Ecolab, Inc. ................... 1,714 37 Engelhard Corp. ................ 1,055 41 Freeport-McMoRan Copper & Gold, Inc., Class B (b) ............ 740 14 Great Lakes Chemical Corp. ..... 382 31 Hercules, Inc. (b) ............. 364 52 Inco Ltd. (b) .................. 1,186 57 Meadwestvaco Corp. ............. 1,927 113 Newmont Mining Corp. ........... 2,964 22 Nucor Corp. .................... 1,459 35 Pall Corp. ..................... 732 25 Phelps Dodge Corp. ............. 1,051 95 Placer Dome, Inc. .............. 1,063 49 PPG Industries, Inc. ........... 3,003 47 Praxair, Inc. .................. 2,675 63 Rohm & Haas Co. ................ 2,571 21 Sigma-Aldrich Corp. ............ 1,055 15 Temple-Inland, Inc. ............ 881 29 United States Steel Corp. ...... 579 29 Vulcan Materials Co. ........... 1,277 25 Worthington Industries, Inc. ... 445 ---------- 70,731 ---------- Real Estate Investment Trust (0.4%): 120 Equity Office Properties Trust ........................ 3,607 79 Equity Residential Properties Trust ........................ 2,269 53 Plum Creek Timber Co, Inc. ..... 1,629
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Real Estate Investment Trust, continued: 51 Simon Property Group, Inc. ..... $ 1,864 ---------- 9,369 ---------- Retail (7.9%): 117 Albertson's, Inc. .............. 3,560 84 Bed Bath & Beyond, Inc. (b) .... 3,166 92 Best Buy Co., Inc. (b) ......... 3,344 33 Big Lots, Inc. ................. 656 60 Circuit City Stores, Inc. ...... 1,131 131 Costco Wholesale Corp. (b) ..... 5,040 113 CVS Corp. ...................... 3,447 50 Darden Restaurants, Inc. ....... 1,229 24 Dillard's, Inc., Class A ....... 636 96 Dollar General Corp. ........... 1,821 50 Family Dollar Stores, Inc. ..... 1,754 58 Federated Department Stores, Inc. (b) ..................... 2,295 249 Gap, Inc. ...................... 3,537 677 Home Depot, Inc. ............... 24,859 77 J.C. Penney, Inc. .............. 1,692 97 Kohl's Corp. (b) ............... 6,770 228 Kroger Co. (b) ................. 4,542 149 Limited, Inc. .................. 3,176 31 Liz Claiborne, Inc. ............ 975 223 Lowe's Cos., Inc. .............. 10,136 82 May Department Stores Co. ...... 2,709 77 Nike, Inc., Class B ............ 4,139 39 Nordstrom, Inc. ................ 876 50 RadioShack Corp. ............... 1,502 139 Safeway, Inc. (b) .............. 4,055 91 Sears Roebuck & Co. ............ 4,921 44 Sherwin-Williams Co. ........... 1,313 134 Staples, Inc. (b) .............. 2,647 111 Starbucks Corp. (b) ............ 2,757 261 Target Corp. ................... 9,929 42 Tiffany & Co. .................. 1,474 155 TJX Cos., Inc. ................. 3,042 60 Toys "R" Us, Inc. (b) .......... 1,057 32 V.F. Corp. ..................... 1,241 1,278 Wal-Mart Stores, Inc. .......... 70,325 294 Walgreen Co. ................... 11,362 33 Wendy's International, Inc. .... 1,312 40 Winn-Dixie Stores, Inc. ........ 629 ---------- 209,056 ---------- Shelter (0.4%): 17 Boise Cascade Corp. ............ 578 18 Centex Corp. ................... 1,017 23 Fluor Corp. .................... 902 66 Georgia-Pacific Corp. .......... 1,627 15 KB Home ........................ 760 30 Louisiana-Pacific Corp. ........ 318
Continued One Group Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 68 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Shelter, continued: 17 Pulte Corp. .................... $ 1,006 24 Sealed Air Corp. (b) ........... 971 63 Weyerhaeuser Co. ............... 4,008 ---------- 11,187 ---------- Technology (14.4%): 228 ADC Telecommunications, Inc. (b) .......................... 523 69 Adobe Systems, Inc. ............ 1,964 98 Advanced Micro Devices, Inc. (b) .......................... 954 133 Agilent Technologies, Inc. (b) .......................... 3,156 110 Altera Corp. (b) ............... 1,502 56 American Power Conversion Corp. (b) .......................... 711 105 Analog Devices, Inc. (b) ....... 3,115 28 Andrew Corp. (b) ............... 404 102 Apple Computer, Inc. (b) ....... 1,812 61 Applera Corp.- Applied Biosystems Group ............. 1,190 471 Applied Materials, Inc. (b) .... 8,954 86 Applied Micro Circuits Corp. (b) .......................... 407 33 Autodesk, Inc. ................. 437 104 Avaya, Inc. (b) ................ 514 70 BMC Software, Inc. (b) ......... 1,159 77 Broadcom Corp., Class A (b) .... 1,354 124 CIENA Corp. (b) ................ 519 2,104 Cisco Systems, Inc. (b) ........ 29,354 81 Citizens Communications Co. (b) .......................... 677 52 Citrix System, Inc. (b) ........ 316 166 Computer Associates International, Inc. .......... 2,642 107 Compuware Corp. (b) ............ 652 54 Comverse Technology, Inc. (b) .......................... 497 27 Cooper Industries Ltd., Class A ............................ 1,051 746 Dell Computer Corp. (b) ........ 19,501 639 EMC Corp. (b) .................. 4,825 93 Gateway, Inc. (b) .............. 414 58 General Dynamics Corp. ......... 6,165 868 Hewlett-Packard Co. ............ 13,259 492 IBM Corp. ...................... 35,424 1,922 Intel Corp. .................... 35,107 61 Intuit, Inc. (b) ............... 3,024 57 Jabil Circuit, Inc. (b) ........ 1,199 391 JDS Uniphase Corp. (b) ......... 1,045 54 KLA-Tencor Corp. (b) ........... 2,391 37 Lexmark International, Inc. (b) .......................... 2,029 91 Linear Technology Corp. ........ 2,867 130 Lockheed Martin Corp. .......... 9,003 106 LSI Logic Corp. (b) ............ 930 985 Lucent Technologies, Inc. ...... 1,635 93 Maxim Integrated Products, Inc. (b) .......................... 3,557 24 Mercury Interactive Corp. (b) .......................... 552
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Technology, continued: 173 Micron Technology, Inc. (b) .... $ 3,496 1,556 Microsoft Corp. (b) ............ 85,136 653 Motorola, Inc. ................. 9,411 52 National Semiconductor Corp. (b) .......................... 1,503 28 NCR Corp. (b) .................. 979 96 Network Appliance, Inc. (b) .... 1,194 1,103 Nortel Networks Corp. (b) ...... 1,599 32 Northrop Grumman Corp. ......... 4,053 42 Novellus Systems, Inc. (b) ..... 1,419 1,578 Oracle Corp. (b) ............... 14,946 166 Palm, Inc. (b) ................. 292 75 Parametric Technology Corp. (b) .......................... 256 89 PeopleSoft, Inc. (b) ........... 1,328 36 PerkinElmer, Inc. .............. 399 48 PMC -- Sierra, Inc. (b) ........ 443 23 Power-One, Inc. (b) ............ 141 27 Qlogic Corp. (b) ............... 1,018 221 Qualcomm, Inc. (b) ............. 6,081 56 Rational Software Corp. (b) .... 459 114 Raytheon Co. ................... 4,664 53 Rockwell Collins ............... 1,441 53 Rockwell International Corp. ... 1,064 151 Sanmina Corp. (b) .............. 950 136 Siebel Systems, Inc. (b) ....... 1,935 237 Solectron Corp. (b) ............ 1,455 933 Sun Microsystems, Inc. (b) ..... 4,674 66 Symbol Technologies, Inc. ...... 560 26 Tektronix, Inc. (b) ............ 491 118 Tellabs, Inc. (b) .............. 732 53 Teradyne, Inc. (b) ............. 1,235 498 Texas Instruments, Inc. ........ 11,814 17 Thomas & Betts Corp. ........... 312 32 TMP Worldwide, Inc. (b) ........ 688 37 TRW, Inc. ...................... 2,087 93 Unisys Corp. (b) ............... 833 118 Veritas Software Corp. (b) ..... 2,327 58 Vitesse Semiconductor Corp. (b) .......................... 179 207 Xerox Corp. .................... 1,442 96 Xilinx, Inc. (b) ............... 2,164 ---------- 381,991 ---------- Transportation (0.9%): 45 AMR Corp. (b) .................. 752 110 Burlington Northern Santa Fe Corp. ........................ 3,302 61 CSX Corp. ...................... 2,139 35 Delta Airlines, Inc. ........... 708 86 FedEx Corp. .................... 4,580 112 Norfolk Southern Corp. ......... 2,608 18 Ryder Systems, Inc. ............ 482 222 Southwest Airlines Co. ......... 3,584
Continued One Group Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 69 Report
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Transportation, continued: 72 Union Pacific Corp. ............ $ 4,581 ---------- 22,736 ---------- Utilities (6.9%): 154 AES Corp. (b) .................. 832 36 Allegheny Energy, Inc. ......... 929 89 Alltel Corp. ................... 4,200 41 Ameren Corp. ................... 1,784 97 American Electric Power Co., Inc. ......................... 3,898 1,092 AT&T Corp. ..................... 11,682 778 AT&T Wireless Services, Inc. (b) .......................... 4,550 539 BellSouth Corp. ................ 16,970 107 Calpine Corp. (b) .............. 755 41 CenturyTel, Inc. ............... 1,198 48 Cinergy Corp. .................. 1,728 39 CMS Energy Corp. ............... 425 61 Consolidated Edison, Inc. ...... 2,552 47 Constellation Energy Group, Inc. ......................... 1,383 79 Dominion Resources, Inc. ....... 5,262 48 DTE Energy Co. ................. 2,138 238 Duke Energy Corp. .............. 7,417 104 Dynegy, Inc. ................... 747 94 Edison International, Inc. (b) .......................... 1,593 64 Entergy Corp. .................. 2,736 93 Exelon Corp. ................... 4,840 86 First Energy Corp. ............. 2,856 51 FPL Group, Inc. ................ 3,035 40 Keyspan Corp. .................. 1,523 35 Kinder Morgan, Inc. ............ 1,335 234 Nextel Communications, Inc., Class A (b) .................. 752 13 NICOR, Inc. .................... 582 60 NiSource, Inc. ................. 1,302 10 Peoples Energy Corp. ........... 372
Shares or Principal Amount Security Description Value --------- -------------------------------- ---------- Common Stocks, continued: Utilities, continued: 112 PG&E Corp. (b) ................. $ 2,002 24 Pinnacle West Capital Corp. .... 963 42 PPL Corp. ...................... 1,399 64 Progress Energy, Inc. .......... 3,307 59 Public Service Enterprise Group, Inc. ......................... 2,566 482 Qwest Communications International, Inc. .......... 1,349 87 Reliant Energy, Inc. ........... 1,474 960 SBC Communications, Inc. ....... 29,281 45 Scientific Atlanta, Inc. ....... 740 59 Sempra Energy .................. 1,306 202 Southern Co. ................... 5,548 256 Sprint Corp., FON Group ........ 2,717 285 Sprint Corp., PCS Group (b) .... 1,275 44 TECO Energy, Inc. .............. 1,095 77 TXU Corp. ...................... 3,945 783 Verizon Communications ......... 31,423 148 Williams Cos., Inc. ............ 889 113 XCEL Energy, Inc. .............. 1,899 ---------- 182,554 ---------- Total Common Stocks 2,612,689 ---------- U.S. Treasury Obligations (0.1%): US Treasuries (0.1%): $ 2,040 9/19/02 (c) .................... 2,033 ---------- Total U.S. Treasury Obligations 2,033 ---------- Investment Companies (1.4%): 35,871 One Group Prime Money Market, Class I ...................... 35,871 ---------- Total Investment Companies 35,871 ---------- Total (Cost $2,074,056)(a) $2,650,593 ==========
------------ Percentages indicated are based on net assets of $2,644,254. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 967,908 Unrealized depreciation...................... (391,371) --------- Net unrealized appreciation (depreciation)... $ 576,537 =========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. (c) Segregated as collateral for futures contracts. (d) Affiliated security. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 70 Report One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks (98.6%): Business Equipment & Services (6.5%): 2 AAR Corp. .......................... $ 20 1 Aaron Rents, Inc. .................. 31 3 ABM Industries, Inc. ............... 47 3 Acxiom Corp. (b) ................... 48 2 Administaff, Inc. (b) .............. 15 1 Advanced Marketing Services, Inc. ............................. 19 2 Advanced Medical Optics (b) ........ 19 1 Advo, Inc. (b) ..................... 42 7 Affiliated Computer Services, Inc., Class A (b) ...................... 349 0 Angelica Corp. ..................... 6 1 Applied Industrial Technologies, Inc. ............................. 21 2 Armor Holdings, Inc. (b) ........... 43 1 Banta Corp. ........................ 51 2 Bowne & Co., Inc. .................. 27 2 Catalina Marketing Corp. (b) ....... 51 1 CDI Corp. (b) ...................... 34 2 Central Parking Corp. .............. 45 3 Checkfree Corp. (b) ................ 42 2 Checkpoint Systems, Inc. (b) ....... 20 1 Chemed Corp. ....................... 21 4 ChoicePoint, Inc. (b) .............. 194 3 Ciber, Inc. (b) .................... 24 1 Computer Task Group, Inc. (b) ...... 4 1 Concerto Software, Inc. (b) ........ 4 1 Concord Communications, Inc. (b) ... 15 1 Consolidated Graphics, Inc. (b) .... 15 7 CSG Systems International, Inc. (b) .............................. 126 1 Cuno, Inc. (b) ..................... 33 2 Dendrite International, Inc. (b) ... 21 5 DST Systems, Inc. (b) .............. 251 3 eFunds Corp. (b) ................... 24 1 Factset Research Systems, Inc. ..... 40 2 Fair Issac & Co., Inc. ............. 67 1 Franklin Covey Co. (b) ............. 2 1 G & K Services, Inc., Class A ...... 39 5 Gartner Group Inc., Class B (b) .... 46 1 Global Payments, Inc. .............. 35 1 Heidrick & Struggles International, Inc. (b) ......................... 21 2 HNC Software, Inc. (b) ............. 33 2 Information Resources, Inc. (b) .... 16 1 Insight Enterprises, Inc. (b) ...... 23 1 Insurance Auto Auctions, Inc. (b) .............................. 10 4 Jacobs Engineering Group, Inc. (b) .............................. 134 2 John H. Harland Co. ................ 48 2 Kelly Services, Inc., Class A ...... 55 1 KEMET Corp. (b) .................... 20 2 Korn/Ferry International (b) ....... 19 2 Labor Ready, Inc. (b) .............. 14 3 Lennox International, Inc. ......... 56 1 Manpower, Inc. ..................... 21 10 Massey Energy Co. .................. 125 1 Maximus, Inc. (b) .................. 41
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Business Equipment & Services, continued: 7 McData Corp., Class A (b) .......... $ 59 1 Memberworks, Inc. (b) .............. 12 6 MPS Group (b) ...................... 48 1 NCO Group, Inc. (b) ................ 31 1 New England Business Services ...... 18 2 Paxar Corp. (b) .................... 39 1 Pegasus Solutions, Inc. (b) ........ 24 1 Philadelphia Consolidated Holding Corp. (b) ........................ 52 9 Pittston Brink's Group ............. 212 1 Prepaid Legal Services, Inc. (b) ... 22 4 PRG-Schultz International, Inc. (b) .............................. 43 1 QRS Corp. (b) ...................... 7 1 Radisys Corp. (b) .................. 11 9 Reynolds & Reynolds Co., Class A ... 240 2 Rollins, Inc. ...................... 37 3 RSA Security, Inc. (b) ............. 16 1 Shuffle Master, Inc. (b) ........... 19 4 Sotheby's Holdings, Inc., Class A (b) .............................. 53 1 SOURCECORP, Inc. (b) ............... 26 3 Spherion Corp. (b) ................. 38 2 Standard Register Co. .............. 52 1 Startek, Inc. (b) .................. 21 14 SunGard Data Systems, Inc. (b) ..... 370 2 Sykes Enterprises, Inc. (b) ........ 17 1 TALX Corp. ......................... 15 1 Tetra Technologies, Inc. (b) ....... 21 1 URS Corp. (b) ...................... 28 1 Varian Semiconductor Equipment Assoc., Inc. (b) ................. 40 4 Viad Corp. ......................... 91 1 Volt Information Sciences, Inc. (b) .............................. 21 2 Wallace Computer Services, Inc. .... 50 6 Weatherford International Ltd. (b) .............................. 262 1 Zebra Technologies Corp., Class A (b) .............................. 59 ------- 4,581 ------- Capital Goods (5.6%): 5 AGCO Corp. ......................... 101 1 Astec Industries, Inc. (b) ......... 17 2 Baldor Electric Co. ................ 47 1 Barnes Group, Inc. ................. 23 1 Belden, Inc. ....................... 28 1 Briggs & Stratton Corp. ............ 46 3 Brooks-PRI Automation, Inc. (b) .... 71 1 Building Material Holding Co. (b) .............................. 10 0 Butler Manufacturing Co. ........... 10 1 C&D Technologies, Inc. ............. 26 2 C-COR.net Corp. (b) ................ 14 1 Castle ( A. M.) & Co. .............. 10 1 Century Aluminum Co. ............... 17 1 Clarcor, Inc. ...................... 43 3 Cooper Cameron Corp. (b) ........... 138
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 71 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Capital Goods, continued: 1 Curtiss-Wright Corp. ............... $ 45 5 Cymer, Inc. (b) .................... 163 3 Diebold, Inc. ...................... 127 4 Donaldson Co., Inc. ................ 137 1 Elcor Corp. ........................ 29 1 Emcor Group, Inc. (b) .............. 48 1 Esterline Technologies Corp. (b) ... 26 1 Fedders Corp. ...................... 4 7 Flowserve Corp. (b) ................ 203 1 Gardner Denver Machinery, Inc. (b) .............................. 17 1 Hall, Kinion & Associates, Inc. (b) .............................. 5 1 Helix Technology Corp. ............. 29 2 HON Industries, Inc. ............... 56 1 Hubbell, Inc., Class B ............. 33 1 Hughes Supply, Inc. ................ 63 1 Imco Recycling, Inc. (b) ........... 8 1 Insituform Technologies, Inc. (b) .............................. 31 1 Intermagnetics General Corp. (b) ... 18 1 Ionics, Inc. (b) ................... 23 2 JLG Industries, Inc. ............... 33 1 Kaman Corp., Class A ............... 21 2 Kennametal, Inc. ................... 91 1 Lawson Products, Inc. .............. 16 1 Lindsay Manufacturing Co. .......... 16 1 Magnetek, Inc. (b) ................. 13 1 Manitowoc Co., Inc. ................ 43 2 Martin Marietta Materials, Inc. .... 90 1 Material Sciences Corp. (b) ........ 8 2 Methode Electronics, Inc., Class A ................................ 25 1 Metro One Telecommunications, Inc. (b) .............................. 19 2 Milacron, Inc. ..................... 19 2 Nordson Corp. ...................... 46 3 Oshkosh Truck Corp. ................ 148 7 Precision Castparts Corp. .......... 232 5 Quanta Services, Inc. (b) .......... 54 1 Regal Beloit Corp. ................. 33 1 Robbins & Myers, Inc. .............. 22 2 Roper Industries, Inc. ............. 57 1 RTI International Metals, Inc. (b) .............................. 12 1 Sequa Corp. (b) .................... 41 6 Shaw Group, Inc. (b) ............... 189 1 Simpson Manufacturing Co., Inc. (b) .............................. 38 1 SPS Technologies, Inc. (b) ......... 28 2 SPX Corp. (b) ...................... 244 1 Standex International Corp. ........ 18 2 Stewart & Stevenson Services, Inc. ............................. 28 2 Technitrol, Inc. ................... 53 1 Tecumseh Products Co. .............. 54 2 Teleflex, Inc. ..................... 109 2 Timken Co. ......................... 40 8 Trinity Industries, Inc. ........... 172 1 Valmont Industries, Inc. ........... 28 2 Vicor Corp. (b) .................... 16
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Capital Goods, continued: 1 Wabash National Corp. .............. $ 13 1 Watts Industries, Inc., Class A .... 29 5 York International Corp. ........... 181 ------- 3,945 ------- Consumer Durable (3.7%): 2 Acuity Brands, Inc. ................ 42 2 Apogee Enterprises, Inc. ........... 22 1 Arctic Cat, Inc. ................... 22 9 Arvinmeritor, Inc. ................. 214 1 Bandag, Inc. ....................... 33 1 Bassett Furniture Industries, Inc. ............................. 13 2 Borg Warner, Inc. .................. 111 1 Carbo Ceramics, Inc. ............... 31 1 Carlisle Cos., Inc. ................ 32 1 Carreker Corp. (b) ................. 15 1 Coachmen Industries, Inc. .......... 13 2 Concord Camera Corp. (b) ........... 8 5 Copart, Inc. (b) ................... 73 7 Corinthian Colleges, Inc. (b) ...... 243 3 Interface, Inc. .................... 23 2 Intermet Corp. ..................... 16 2 Kaydon Corp. ....................... 40 6 Lear Corp. (b) ..................... 270 2 Modine Manufacturing Co. ........... 49 6 Mohawk Industries, Inc. (b) ........ 350 2 Monaco Coach Corp. (b) ............. 34 1 Myers Industries, Inc. ............. 23 2 Polaris Industries, Inc. ........... 103 14 Republic Services, Inc. (b) ........ 259 1 Royal Appliance Manufacturing Co. (b) .............................. 4 2 Smith (A.O.) Corp. ................. 53 10 Sonoco Products Co. ................ 294 1 Standard Motor Products, Inc. ...... 13 0 Stratos Lightwave, Inc. (b) ........ 0 1 TBC Corp. (b) ...................... 18 1 Titan International, Inc. .......... 2 1 Toro Co. ........................... 39 4 Tower Automotive, Inc. (b) ......... 53 1 Watsco, Inc. ....................... 27 1 Winnebago Industries, Inc. ......... 50 2 WMS Industries, Inc. (b) ........... 22 ------- 2,614 ------- Consumer Non-Durable (6.4%): 2 Albany International Corp. ......... 48 1 American Italian Pasta Co., Class A (b) .............................. 50 1 Applica, Inc. (b) .................. 17 1 AptarGroup, Inc. ................... 38 1 Ashworth, Inc. (b) ................. 6 7 Blyth Industries, Inc. ............. 228 1 Brown Shoe Co., Inc. ............... 27 0 Coca-Cola Bottling Co. ............. 21
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 72 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Consumer Non-Durable, continued: 5 Constellation Brands, Inc. (b) ..... $ 145 0 CPI Corp. .......................... 9 1 Cross (A.T.) Co. (b) ............... 6 4 Dean Foods Co. (b) ................. 151 1 Department 56, Inc. (b) ............ 12 5 Dial Corp. ......................... 91 2 Dimon, Inc. ........................ 17 4 Dole Food Co., Inc. ................ 126 5 Energizer Holdings, Inc. (b) ....... 126 1 Enesco Group, Inc. (b) ............. 5 3 Fleming Co., Inc. .................. 51 1 Flow International Corp. (b) ....... 4 3 Fossil, Inc. (b) ................... 53 0 Haggar Corp. ....................... 4 2 Hain Celestial Group, Inc. (b) ..... 35 2 Hormel Foods Corp. ................. 40 2 Imation Corp. (b) .................. 50 1 International Multifoods Corp. (b) .............................. 27 3 Interstate Bakeries Corp. .......... 97 2 ITT Educational Services, Inc. (b) .............................. 47 0 J & J Snack Foods Corp. (b) ........ 22 1 K Swiss, Inc. ...................... 25 2 La-Z-Boy Chair Co. ................. 58 2 Lancaster Colony Corp. ............. 64 2 Lance, Inc. ........................ 23 5 Lennar Corp. ....................... 321 1 Libbey, Inc. ....................... 29 1 Luby's Cafeteria, Inc. (b) ......... 9 5 McCormick & Co., Inc. .............. 121 1 Nash Finch Co. ..................... 21 0 National Presto Industries, Inc. ... 12 1 Natures Sunshine Products, Inc. .... 11 12 NBTY, Inc. (b) ..................... 185 1 Oshkosh 'B' Gosh, Inc. ............. 33 0 Oxford Industries, Inc. ............ 12 2 Pacific Sunwear of California, Inc. (b) .............................. 40 5 Packaging Corporation of America (b) .............................. 106 1 Payless Shoesource, Inc. (b) ....... 64 0 Penford Corp. ...................... 5 1 Performance Food Group Co. (b) ..... 42 1 Quiksilver, Inc. (b) ............... 32 2 Ralcorp Holdings, Inc. (b) ......... 52 7 RJ Reynolds Tobacco Holdings, Inc. ............................. 391 1 Russ Berrie & Co., Inc. ............ 39 2 Russell Corp. ...................... 34 0 Salton, Inc. (b) ................... 7 1 Schweitzer-Mauduit International, Inc. ............................. 20 2 Sensient Technologies Corp. ........ 52 11 Smithfield Foods, Inc. (b) ......... 198 2 Stride Rite Corp. .................. 19 1 Thomas Industries, Inc. ............ 24 1 Triarc Cos., Inc. (b) .............. 31 1 Triumph Group, Inc. (b) ............ 39
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Consumer Non-Durable, continued: 29 Tyson Foods, Inc., Class A ......... $ 453 1 United Natural Foods, Inc. (b) ..... 20 4 United Stationers, Inc. (b) ........ 131 3 Universal Corp. .................... 96 2 Wet Seal, Inc., Class A (b) ........ 40 2 Wolverine World Wide, Inc. ......... 40 ------- 4,452 ------- Consumer Services (5.0%): 1 4Kids Entertainment, Inc. (b) ...... 12 1 Action Performance Cos., Inc. (b) .............................. 30 1 Argosy Gaming Co. (b) .............. 38 2 Aztar Corp. (b) .................... 42 4 Belo Corp., Class A ................ 101 2 Coach, Inc. (b) .................... 100 8 Dun & Bradstreet Corp. (b) ......... 276 5 Entercom Communications Corp. (b) .............................. 208 8 GTECH Holdings Corp. (b) ........... 197 11 Harte-Hanks, Inc. .................. 221 5 Hispanic Broadcasting Corp. (b) .... 141 1 Huffy Corp. (b) .................... 5 1 Imagistics International, Inc. (b) .............................. 23 1 Information Holdings, Inc. (b) ..... 29 3 International Speedway Corp., Class A ................................ 109 1 Jakks Pacific, Inc. (b) ............ 22 1 K2, Inc. (b) ....................... 7 2 Kroll, Inc. (b) .................... 37 2 Lee Enterprises, Inc. .............. 67 5 Mandalay Resort Group (b) .......... 144 2 Marcus Corp. ....................... 27 1 Meade Instruments Corp. (b) ........ 4 3 Media General, Inc. ................ 190 3 Midway Games, Inc. (b) ............. 24 2 On Assignment, Inc. (b) ............ 28 23 Park Place Entertainment Corp. (b) .............................. 238 2 Penton Media, Inc. ................. 4 2 Pinnacle Entertainment, Inc. (b) ... 16 2 Prime Hospitality Corp. (b) ........ 32 1 Rare Hospitality International (b) .............................. 32 5 Reader's Digest Association, Inc., Class A .......................... 92 6 Scholastic Corp. (b) ............... 212 1 SCP Pool Corp. (b) ................. 38 2 Shurgard Storage Centers ........... 67 1 Sturm Ruger & Co., Inc. ............ 21 7 Sylvan Learning Systems, Inc. (b) .............................. 131 1 Thomas Nelson, Inc. ................ 9 1 THQ, Inc. (b) ...................... 40 3 Valassis Communications, Inc. (b) .............................. 98 0 Washington Post Co. ................ 99 2 Waste Connections, Inc. (b) ........ 51 7 Westwood One, Inc. (b) ............. 243 ------- 3,505 -------
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 73 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Energy (5.7%): 3 Ashland Co., Inc. .................. $ 138 1 Atwood Oceanics, Inc. (b) .......... 29 2 Cabot Oil & Gas Corp., Class A ..... 40 2 Cal Dive International, Inc. (b) ... 44 2 DPL, Inc. .......................... 45 1 Dril-Quip, Inc. (b) ................ 24 4 ENSCO International, Inc. .......... 104 3 Equitable Resources, Inc. .......... 107 1 Evergreen Resources, Inc. (b) ...... 44 3 Forest Oil Corp. (b) ............... 99 3 Graftech International Ltd. (b) .... 39 3 Grant Prideco, Inc. (b) ............ 44 2 Great Plains Energy, Inc. .......... 41 6 Hanover Compressor Co. (b) ......... 75 3 Input/Output, Inc. (b) ............. 26 1 Laclede Group, Inc. ................ 25 1 Murphy Oil Corp. ................... 83 11 National-Oil Well, Inc. (b) ........ 222 6 Newfield Exploration Co. (b) ....... 231 1 Nuevo Energy Co. (b) ............... 12 8 Ocean Energy, Inc. ................. 177 1 Oceaneering International, Inc. (b) .............................. 35 1 Offshore Logistics, Inc. (b) ....... 29 1 Patina Oil & Gas Corp. ............. 41 3 Patterson-UTI Energy, Inc. (b) ..... 94 4 Pennzoil-Quaker State Co. .......... 86 1 Pioneer Natural Resources Co. (b) .............................. 39 1 Plains Resources, Inc. (b) ......... 35 7 Pogo Producing Co. ................. 236 2 Power Integrations, Inc. (b) ....... 28 1 Prima Energy (b) ................... 16 1 Remington Oil & Gas Corp. (b) ...... 30 2 Saint Mary Land & Exploration Corp. ............................ 37 1 Seacor Smit, Inc. (b) .............. 56 2 Smith International, Inc. (b) ...... 169 5 Stone Energy Corp. (b) ............. 186 2 Swift Energy Co. (b) ............... 24 7 Tidewater, Inc. .................... 228 2 Unit Corp. (b) ..................... 35 6 Valero Energy Corp. ................ 239 10 Varco International, Inc. (b) ...... 182 2 Veritas DGC, Inc. (b) .............. 22 3 Vintage Petroleum, Inc. ............ 42 13 Westar Energy, Inc. ................ 199 14 XTO Energy, Inc. ................... 285 ------- 4,022 ------- Financial Services (16.2%): 1 A.G. Edwards, Inc. ................. 45 2 Allmerica Financial Corp. .......... 112 9 American Financial Group, Inc. ..... 223 1 American Financial Holdings, Inc. ............................. 40 10 AmeriCredit Corp. (b) .............. 275 2 AmerUs Group Co. ................... 87
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Financial Services, continued: 1 Anchor Bancorp Wisconsin, Inc. ..... $ 33 3 Arthur J. Gallagher & Co. .......... 111 7 Associated Banc-Corp. .............. 278 5 Astoria Financial Corp. ............ 150 4 Bank of Hawaii Corp. ............... 99 2 Banknorth Group, Inc. .............. 42 1 Barra, Inc. (b) .................... 28 7 BISYS Group, Inc. (b) .............. 235 1 Boston Private Financial Holdings, Inc. ............................. 30 2 Certegy, Inc. (b) .................. 64 2 Chittenden Corp. ................... 55 3 City National Corp. ................ 165 12 Colonial BancGroup, Inc. ........... 176 3 Commerce Bancorp, Inc. ............. 125 6 Commercial Federal Corp. ........... 184 2 Community First Bankshares, Inc. ... 62 11 Compass Bancshares, Inc. ........... 369 1 Delphi Financial Group, Class A (b) .............................. 49 2 Dime Community Bancshares .......... 45 4 Downey Financial Corp. ............. 204 46 E*Trade Group, Inc. (b) ............ 253 1 East-West Bancorp, Inc. ............ 45 4 Eaton Vance Corp. .................. 129 3 Everest Re Group Ltd. .............. 147 10 Fidelity National Financial, Inc. ............................. 321 1 Financial Federal Corp. (b) ........ 30 2 First American Financial Corp. ..... 48 1 First BanCorp ...................... 55 3 First Midwest Bancorp, Inc. ........ 80 1 First Republic Bancorp, Inc. (b) ... 21 2 First Virginia Banks, Inc. ......... 96 1 Firstfed Financial Corp. (b) ....... 28 4 FirstMerit Corp. ................... 119 4 Fremont General Corp. .............. 16 2 GATX Corp. ......................... 72 1 GBC Bancorp California ............. 18 11 Golden State Bancorp ............... 384 4 Greater Bay Bancorp ................ 119 8 GreenPoint Financial Corp. ......... 408 16 Hibernia Corp., Class A ............ 308 1 Hilb, Rogal & Hamilton Co. ......... 64 2 Horace Mann Educators Corp. ........ 43 7 Hudson United Bancorp .............. 190 2 Independence Community Bank Corp. ............................ 55 3 IndyMac Bancorp, Inc. (b) .......... 68 2 Investors Financial Services Corp. ............................ 84 5 Jefferies Group, Inc. .............. 200 2 Kilroy Realty Corp. ................ 41 1 LandAmerica Financial Group, Inc. ............................. 32 6 Legg Mason, Inc. ................... 272 4 M & T Bank Corp. ................... 370 1 MAF Bancorp, Inc. .................. 47 1 Mercantile Bankshares Corp. ........ 24
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 74 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Financial Services, continued: 4 Metris Cos., Inc. .................. $ 30 5 National Commerce Financial Co. .... 119 1 Neuberger Berman, Inc. ............. 32 3 New York Community Bancorp ......... 87 8 North Fork Bancorp, Inc. ........... 315 3 Ohio Casualty Corp. (b) ............ 59 10 Old Republic International Corp. ... 308 5 PMI Group, Inc. .................... 191 2 Presidential Life Corp. ............ 33 7 Protective Life Corp. .............. 237 1 Provident Bankshares Corp. ......... 33 3 Provident Financial Group, Inc. .... 85 2 Radian Group, Inc. ................. 89 6 Raymond James Financial, Inc. ...... 180 2 Riggs National Corp. Washington D.C .............................. 24 1 RLI Corp. .......................... 28 10 Roslyn Bancorp, Inc. ............... 226 0 Scpie Holdings, Inc. ............... 2 1 Seacoast Financial Services Corp. ............................ 35 5 SEI Investments Co. ................ 130 1 Selective Insurance Group, Inc. .... 40 2 South Financial Group, Inc. ........ 55 23 Sovereign Bancorp, Inc. ............ 338 4 StanCorp Financial Group, Inc. ..... 226 2 Staten Island Bancorp, Inc. ........ 45 2 Sterling Bancshares, Inc. .......... 35 1 Stewart Information Services Corp. (b) .............................. 20 2 Susquehanna Bancshares, Inc. ....... 53 1 SWS Group, Inc. .................... 19 1 TCF Financial Corp. ................ 56 2 Trenwick Group Ltd. ................ 15 4 TrustCo Bank Corp. ................. 52 1 UCBH Holdings, Inc. ................ 41 3 UICI (b) ........................... 57 3 United Bankshares, Inc. ............ 75 0 Unitrin, Inc. ...................... 16 2 Washington Federal, Inc. ........... 58 6 Webster Financial Corp. ............ 232 1 Westamerica Bancorp ................ 55 2 Whitney Holding Corp. .............. 72 1 Zenith National Insurance Corp. .... 31 ------- 11,307 ------- Health Care (11.9%): 1 Accredo Health, Inc. (b) ........... 42 10 AdvancePCS (b) ..................... 237 3 Alpharma, Inc. ..................... 46 2 Ameripath, Inc. (b) ................ 46 10 Apogent Technologies, Inc. (b) ..... 203 6 Apria Healthcare Group, Inc. (b) ... 145 1 ArQule (b) ......................... 6 1 Arthrocare Corp. (b) ............... 16 2 Bally Total Fitness Holding Corp. (b) .............................. 36 5 Barr Laboratories, Inc. (b) ........ 309
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Health Care, continued: 3 Beckman Coulter, Inc. .............. $ 152 3 Bio-Technology General Corp. (b) ... 19 1 Biosite, Inc. (b) .................. 23 4 Cephalon, Inc. (b) ................. 200 2 Conmed Corp. (b) ................... 35 1 Cooper Cos., Inc. .................. 40 5 Coventry Health Care, Inc. (b) ..... 133 1 Cryolife, Inc. (b) ................. 17 1 Curative Health Services, Inc. (b) .............................. 11 2 Cygnus, Inc. (b) ................... 4 1 Datascope Corp. .................... 23 7 Dentsply International, Inc. ....... 268 1 DIANON Systems, Inc. (b) ........... 39 9 Edwards Lifesciences Corp. (b) ..... 206 2 Enzo Biochem, Inc. (b) ............. 23 4 Express Scripts, Inc., Class A (b) .............................. 202 14 Gilead Sciences, Inc. (b) .......... 454 2 Haemonetics Corp. (b) .............. 49 7 Health Net, Inc. (b) ............... 175 2 Henry Schein, Inc. (b) ............. 77 6 Hillenbrand Industries, Inc. ....... 335 1 Hologic, Inc. (b) .................. 15 4 Hooper Holmes, Inc. ................ 29 6 ICN Pharmaceuticals, Inc. .......... 156 1 ICU Medical, Inc. (b) .............. 25 6 IDEXX Laboratories, Inc. (b) ....... 152 1 Impath, Inc. (b) ................... 16 1 Inamed Corp. (b) ................... 30 4 Incyte Genomics, Inc. (b) .......... 29 1 Invacare Corp. ..................... 46 5 Lincare Holdings, Inc. (b) ......... 172 0 Medicis Pharmaceuticals, Inc. (b) .............................. 21 1 Mentor Corp. ....................... 48 1 MGI Pharma, Inc. (b) ............... 9 2 Mid Atlantic Medical Services, Inc. (b) .............................. 53 11 Mylan Laboratories, Inc. ........... 351 6 NDCHealth Corp. .................... 181 1 Noven Pharmaceuticals, Inc. (b) .... 32 9 Omnicare, Inc. ..................... 243 1 Orthodontic Centers of America, Inc. (b) .............................. 29 1 Osteotech, Inc. (b) ................ 7 2 Owens & Minor, Inc. ................ 37 6 Oxford Health Plans, Inc. (b) ...... 301 4 PacifiCare Health Systems, Inc. (b) .............................. 118 1 Parexel International Corp. (b) .... 19 4 Pediatrix Medical Group, Inc. (b) .............................. 97 4 Perrigo Co. (b) .................... 57 1 PolyMedica Corp. (b) ............... 18 5 Protein Design Labs, Inc. (b) ...... 52 2 Province Healthcare Co. (b) ........ 36 5 Quest Diagnostics, Inc. (b) ........ 412 11 Regeneron Pharmaceuticals, Inc. (b) .............................. 159
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 75 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Health Care, continued: 1 Rehabcare Group, Inc. (b) .......... $ 23 6 Renal Care Group, Inc. (b) ......... 179 4 Respironics, Inc. (b) .............. 138 4 SICOR, Inc. (b) .................... 74 2 Sierra Health Services, Inc. (b) ... 34 1 Sola International, Inc. (b) ....... 16 0 Spacelabs Medical, Inc. (b) ........ 5 10 Steris Corp. (b) ................... 191 1 Sunrise Assisted Living, Inc. (c) (b) .............................. 33 1 Surmodics, Inc. (b) ................ 24 2 Sybron Dental Specialties, Inc. (b) .............................. 39 1 Syncor International Corp. (b) ..... 43 2 Theragenics Corp. (b) .............. 14 7 Triad Hospitals, Inc. (b) .......... 285 2 Trigon Healthcare, Inc. (b) ........ 179 5 Universal Health Services, Inc., Class B (b) ...................... 251 5 US Oncology, Inc. (b) .............. 44 7 Vertex Pharmaceuticals, Inc. (b) ... 120 1 Viasys Healthcare, Inc. (b) ........ 25 3 VISX, Inc. (b) ..................... 33 1 Vital Signs, Inc. .................. 26 ------- 8,297 ------- Investment Companies (0.9%): 7 Mid-Cap 400 Depository Receipt ..... 655 ------- Multi-Industry (0.5%): 7 FMC Corp. (b) ...................... 201 2 Griffon Corp. (b) .................. 33 6 United Rentals, Inc. (b) ........... 125 ------- 359 ------- Raw Materials (4.0%): 2 A. Schulman, Inc. .................. 37 5 Airgas, Inc. (b) ................... 86 2 Albemarle Corp. .................... 49 1 Arch Chemicals, Inc. ............... 30 1 Brady Corp., Class A ............... 44 1 Brush Engineered Materials, Inc. ... 9 2 Buckeye Technologies, Inc. (b) ..... 19 4 Cabot Corp. ........................ 125 0 Cabot Microelectronics Corp. (b) ... 0 2 Caraustar Industries, Inc. ......... 19 1 Carpenter Technology Corp. ......... 35 1 Chemfirst, Inc. .................... 24 0 Cleveland Cliffs, Inc. ............. 14 1 Commercial Metals Co. .............. 34 1 Commonwealth Industries, Inc. ...... 5 1 Cytec Industries, Inc. (b) ......... 44 2 Ferro Corp. ........................ 60 1 Florida Rock Industries, Inc. ...... 35 2 Georgia Gulf Corp. ................. 46 2 H.B. Fuller Co. .................... 47 3 Harmonic Lightwaves, Inc. (b) ...... 12
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Raw Materials, continued: 6 Harsco Corp. ....................... $ 209 3 IMC Global, Inc. ................... 43 1 Key Production Company, Inc. (b) ... 16 7 Lubrizol Corp. ..................... 222 0 Lyondell Chemical Co. .............. 6 2 Macdermid, Inc. .................... 38 2 Minerals Technologies, Inc. ........ 114 1 Mueller Industries, Inc. (b) ....... 39 1 Nui Corp. .......................... 24 3 Olin Corp. ......................... 60 3 OM Group, Inc. ..................... 218 2 Omnova Solutions, Inc. ............. 18 4 Polyone Corp. ...................... 49 0 Quaker Chemical Corp. .............. 11 1 Quanex Corp. ....................... 33 1 Rayonier, Inc. ..................... 64 2 Reliance Steel & Aluminum Co. ...... 57 15 RPM, Inc. .......................... 228 1 Ryerson Tull, Inc. ................. 17 2 Scotts Co., Class A (b) ............ 100 7 Solutia, Inc. ...................... 47 3 Steel Dynamics, Inc. (b) ........... 42 1 Steel Technologies, Inc. ........... 8 2 Stillwater Mining Co. (b) .......... 36 1 Texas Industries, Inc. ............. 36 2 Tredegar Industries Corp. .......... 51 3 Unifi, Inc. (b) .................... 32 1 Universal Forest Products, Inc. .... 26 3 Valspar Corp. ...................... 115 1 WD-40 Co. .......................... 24 2 Wellman, Inc. ...................... 30 1 Wolverine Tube, Inc. (b) ........... 4 ------- 2,791 ------- Real Estate Investment Trust (0.4%): 1 Colonial Properties Trust .......... 45 4 Hospitality Properties Trust ....... 135 6 New Plan Excel Realty Trust ........ 115 ------- 295 ------- Retail (8.3%): 11 Abercrombie & Fitch Co., Class A (b) .............................. 269 3 American Eagle Outfitters, Inc. (b) .............................. 69 6 Ann Taylor Stores Corp. (b) ........ 149 3 Applebee's International, Inc. ..... 62 3 Barnes & Noble, Inc. (b) ........... 85 1 Bell Microproducts, Inc. (b) ....... 9 4 BJ's Wholesale Club, Inc. (b) ...... 144 6 Bob Evans Farms, Inc. .............. 198 12 Borders Group, Inc. (b) ............ 220 5 Brinker International, Inc. (b) .... 159 3 Burlington Coat Factory Warehouse Corp. ............................ 56 3 Casey's General Stores, Inc. ....... 33
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 76 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Retail, continued: 1 Cash America International, Inc. ... $ 13 1 Cato Corp., Class A ................ 31 7 CBRL Group, Inc. ................... 217 4 CDW Computer Centers, Inc. (b) ..... 201 1 CEC Entertainment, Inc. (b) ........ 45 1 Christopher & Banks Corp. (b) ...... 62 3 Claire's Stores, Inc. .............. 64 1 Cost Plus, Inc. (b) ................ 36 2 Delta & Pine Land Co. .............. 43 8 Dollar Tree Stores, Inc. (b) ....... 302 2 Dress Barn, Inc. (b) ............... 31 1 Duane Reade, Inc. (b) .............. 49 1 Ethan Allen Interiors, Inc. ........ 48 1 Factory 2-U Stores, Inc. (b) ....... 8 1 Footstar, Inc. (b) ................. 27 2 Fred's, Inc. ....................... 55 2 Furniture Brands International, Inc. (b) .............................. 68 1 Genesco, Inc. (b) .................. 29 2 Goody's Family Clothing, Inc. (b) .............................. 21 7 Great Atlantic & Pacific Tea, Inc. (b) .............................. 125 3 Group 1 Automotive, Inc. (b) ....... 111 2 Gymboree Corp. (b) ................. 25 1 Hancock Fabrics, Inc. .............. 20 1 Haverty Furniture Cos., Inc. ....... 25 2 Hot Topic, Inc. (b) ................ 46 1 IHOP Corp. (b) ..................... 34 1 J. Jill Group, Inc. (b) ............ 28 6 Jack in the Box, Inc. (b) .......... 194 3 JM Smuckers CO -- New .............. 92 1 Jo-Ann Stores, Inc. (b) ............ 30 1 Kellwood Co. ....................... 48 2 Landry's Seafood Restaurants, Inc. ............................. 41 1 Lone Star Steakhouse & Saloon, Inc. ............................. 28 2 Longs Drug Stores, Inc. ............ 52 2 Men's Wearhouse, Inc. (b) .......... 54 4 Michael's Stores, Inc. (b) ......... 149 1 Midas, Inc. (b) .................... 11 2 Nautica Enterprises, Inc. (b) ...... 24 0 Neiman-Marcus Group, Inc., Class A (b) .............................. 2 1 O'Charleys, Inc. (b) ............... 26 1 P.F. Chang's China Bistro, Inc. (b) .............................. 42 2 Panera Bread Co. (b) ............... 58 1 Papa John's International, Inc. (b) .............................. 42 3 Pep Boys-Manny, Moe & Jack ......... 48 2 Phillips-Van Heusen Corp. .......... 24 8 Pier 1 Imports, Inc. ............... 173 1 Regis Corp. ........................ 39 8 Ross Stores, Inc. .................. 305 3 Ruby Tuesday, Inc. ................. 57 3 Ruddick Corp. ...................... 45 3 Ryan's Family Steakhouses, Inc. (b) .............................. 33 19 Saks, Inc. (b) ..................... 242
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Retail, continued: 1 School Specialty, Inc. (b) ......... $ 26 2 Shopko Stores, Inc. (b) ............ 32 2 Stein Mart, Inc. (b) ............... 27 2 The Children's Place Retail Stores, Inc. (b) ......................... 41 2 The Steak n Shake Co. (b) .......... 24 2 Too, Inc. (b) ...................... 62 1 Ultimate Electronics, Inc. (b) ..... 22 3 Whole Foods Market, Inc. (b) ....... 129 6 Williams-Sonoma, Inc. (b) .......... 173 5 Zale Corp. (b) ..................... 173 ------- 5,785 ------- Shelter (2.2%): 3 Champion Enterprises, Inc. (b) ..... 15 1 Chesapeake Corp. ................... 22 12 D.R. Horton, Inc. .................. 324 1 Deltic Timber Corp. ................ 23 1 Essex Property Trust, Inc. ......... 59 2 Fleetwood Enterprises, Inc. ........ 17 2 Glatfelter (P. H.) Co. ............. 44 3 Longview Fibre Co. ................. 29 1 Lydall, Inc. (b) ................... 11 1 MDC Holdings, Inc. ................. 49 1 Mobile Mini, Inc. (b) .............. 13 1 NVR, Inc. (b) ...................... 279 6 Pentair, Inc. ...................... 277 1 Pope & Talbot, Inc. ................ 17 2 Potlatch Corp. ..................... 57 1 Ryland Group, Inc. ................. 62 0 Skyline Corp. ...................... 15 1 Standard Pacific Corp. ............. 52 1 Thor Industries, Inc. .............. 60 3 Toll Brothers, Inc. (b) ............ 75 3 Wausau-Mosinee Paper Corp. ......... 37 ------- 1,537 ------- Technology (13.1%): 25 3Com Corp. (b) ..................... 109 1 Actel Corp. (b) .................... 28 7 Activision, Inc. (b) ............... 204 8 Adaptec, Inc. (b) .................. 65 2 Adtran, Inc. (b) ................... 44 1 Advent Software, Inc. (b) .......... 32 4 Aeroflex, Inc. (b) ................. 25 2 Allen Telecom, Inc. (b) ............ 8 2 Alliance Semiconductor Corp. (b) ... 16 2 American Management Systems, Inc. (b) .............................. 44 1 Analogic Corp. ..................... 36 1 Analysts International Corp. ....... 4 1 Anixter International, Inc. (b) .... 31 1 ANSYS, Inc. (b) .................... 16 14 Arrow Electronics, Inc. (b) ........ 286
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 77 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Technology, continued: 2 Artesyn Technologies, Inc. (b) ..... $ 14 1 Ascential Software Corp. (b) ....... 1 3 Aspect Communications Corp. (b) .... 10 2 Aspen Technology, Inc. (b) ......... 17 2 ATMI, Inc. (b) ..................... 40 1 Audiovox Corp., Class A (b) ........ 11 1 Avid Technology, Inc. (b) .......... 13 11 Avnet, Inc. ........................ 235 8 Avocent Corp. (b) .................. 132 1 Aware, Inc. (b) .................... 4 1 AXT, Inc. (b) ...................... 11 2 BE Aerospace, Inc. (b) ............. 26 1 BEI Technologies, Inc. ............. 9 1 Bel Fuse, Inc., Class B ............ 17 1 Benchmark Electronics, Inc. (b) .... 40 2 Black Box Corp. (b) ................ 68 1 Brooktrout, Inc. (b) ............... 3 2 CACI International, Inc., Class A (b) .............................. 59 23 Cadence Design Systems, Inc. (b) ... 377 1 Captaris, Inc. (b) ................. 4 1 Catapult Communications Corp. (b) .............................. 16 4 Ceridian Corp. (b) ................. 85 1 Cerner Corp. (b) ................... 25 0 Cirrus Logic, Inc. (b) ............. 1 2 Coherent, Inc. (b) ................. 47 1 Cohu, Inc. ......................... 20 3 Commscope, Inc. (b) ................ 42 1 Credence Systems Corp. (b) ......... 26 3 Cree Research, Inc. (b) ............ 46 2 CTS Corp. .......................... 22 6 Cypress Semiconductor Corp. (b) .... 85 2 DeVry, Inc. (b) .................... 56 1 Digi International, Inc. (b) ....... 3 1 Dionex Corp. (b) ................... 32 5 DMC Stratex Networks, Inc. (b) ..... 9 2 DRS Technologies, Inc. (b) ......... 78 2 DSP Group, Inc. (b) ................ 30 1 Dupont Photomasks, Inc. (b) ........ 32 3 Dycom Industries, Inc. (b) ......... 32 1 EDO Corp. .......................... 31 2 Electro Scientific Industries, Inc. (b) .............................. 37 1 Electroglas, Inc. (b) .............. 12 7 Electronic Arts, Inc. (b) .......... 459 1 Epresence, Inc. (b) ................ 4 2 ESS Technology, Inc. (b) ........... 43 2 Exar Corp. (b) ..................... 43 6 Fairchild Semiconductor Corp. (b) .............................. 144 5 FEI Co. (b) ........................ 134 2 Filenet Corp. (b) .................. 28 1 FLIR Systems, Inc. (b) ............. 42 3 FMC Technologies, Inc. (b) ......... 63 2 Gencorp, Inc. ...................... 34 1 Gerber Scientific, Inc. (b) ........ 4
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Technology, continued: 7 Harris Corp. ....................... $ 251 1 Hutchinson Technology, Inc. (b) .... 22 2 Hyperion Solutions Corp. (b) ....... 33 2 Infocus Corp. (b) .................. 26 1 Integrated Device Technology, Inc. (b) .............................. 27 1 Inter-Tel, Inc. .................... 23 3 International Rectifier Corp. (b) .............................. 87 0 Internet Security, Inc. (b) ........ 1 10 Intersil Corp., Class A (b) ........ 205 1 Intervoice-Brite, Inc. (b) ......... 2 2 Investment Technology Group (b) .... 78 1 Itron, Inc. (b) .................... 29 2 JDA Software Group, Inc. (b) ....... 43 4 Keane, Inc. (b) .................... 46 1 Keithley Instruments, Inc. ......... 13 4 Kopin Corp. (b) .................... 27 1 Kronos, Inc. (b) ................... 34 3 Kulicke & Soffa Industries, Inc. (b) .............................. 32 4 L-3 Communications Holdings, Inc. (b) .............................. 217 8 Lam Research Corp. (b) ............. 145 18 Lattice Semiconductor Corp. (b) .... 155 6 Legato Systems, Inc. (b) ........... 23 2 Lone Star Technologies, Inc. (b) ... 39 0 LTX Corp. (b) ...................... 1 2 Macrovision Corp. (b) .............. 25 0 Manhattan Associates, Inc. (b) ..... 2 1 MapInfo Corp. (b) .................. 6 5 Mentor Graphics Corp. (b) .......... 70 1 Mercury Computer Systems, Inc. (b) .............................. 25 15 Microchip Technology, Inc. (b) ..... 410 1 Micros Systems, Inc. (b) ........... 27 2 Microsemi Corp. (b) ................ 10 2 MIPS Technologies, Inc. (b) ........ 12 1 MRO Software, Inc. (b) ............. 14 2 Netegrity, Inc. (b) ................ 12 1 Network Equipment Tech, Inc. (b) ... 4 15 Networks Associates, Inc. (b) ...... 296 2 Newport Corp. ...................... 32 2 NYFIX, Inc. (b) .................... 15 1 Park Electrochemical Corp. ......... 29 1 PC-Tel, Inc. (b) ................... 5 1 Pericom Semiconductor Corp. (b) .... 16 1 Phoenix Technologies Ltd. (b) ...... 14 1 Photon Dynamics, Inc. (b) .......... 28 8 Photronics, Inc. (b) ............... 154 3 Pinnacle Systems, Inc. (b) ......... 35 2 Pioneer-Standard Electronics, Inc. ............................. 18 1 Planar Systems, Inc. (b) ........... 14 4 Powerwave Technologies, Inc. (b) ... 35 4 Price Communications Corp. (b) ..... 65 2 Progress Software Corp. (b) ........ 29 2 Radiant Systems, Inc. (b) .......... 21 1 Rainbow Technologies, Inc. (b) ..... 7
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 78 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Technology, continued: 3 Retek, Inc. (b) .................... $ 73 1 Rogers Corp. (b) ................... 24 1 Roxio, Inc. (b) .................... 8 1 Rudolph Technologies, Inc. (b) ..... 22 1 SanDisk Corp. (b) .................. 17 1 SBS Technologies, Inc. (b) ......... 8 1 SCM Microsystems, Inc. (b) ......... 8 3 Semtech Corp. (b) .................. 91 2 SERENA Software, Inc. (b) .......... 33 8 Skyworks Solutions, Inc. (b) ....... 42 1 SPSS, Inc. (b) ..................... 14 1 Standard Microsystems Corp. (b) .... 21 10 Storage Technology Corp. (b) ....... 164 1 Supertex, Inc. (b) ................. 12 14 Sybase, Inc. (b) ................... 148 7 Symantec Corp. (b) ................. 226 1 Symmetricom, Inc. (b) .............. 4 6 Synopsys, Inc. (b) ................. 314 2 Systems & Computer Technology Corp. (b) .............................. 25 2 Take-Two Interactive Software, Inc. (b) .............................. 42 7 Tech Data Corp. (b) ................ 261 2 Teledyne Technologies, Inc. (b) .... 37 3 Tetra Tech, Inc. (b) ............... 46 2 THERMA-WAVE, Inc. (b) .............. 18 1 Three-Five Systems, Inc. (b) ....... 13 3 Titan Corp. (b) .................... 46 1 Tollgrade Communications, Inc. (b) .............................. 11 2 Transaction Systems Architects, Inc. (b) .............................. 23 2 Trimble Navigation Ltd. (b) ........ 26 1 Ultratech Stepper, Inc. (b) ........ 20 6 Veeco Instruments, Inc. (b) ........ 142 2 Verity, Inc. (b) ................... 21 1 ViaSat, Inc. (b) ................... 12 14 Vishay Intertechnology, Inc. (b) ... 303 5 Wind River Systems, Inc. (b) ....... 23 1 Woodward Governor Co. .............. 37 1 X-Rite, Inc. ....................... 8 1 Zixit Corp. (b) .................... 4 ------- 9,140 ------- Transportation (2.3%): 8 Airborne, Inc. ..................... 163 2 Alaska Air Group, Inc. (b) ......... 39 2 Alexander & Baldwin, Inc. .......... 52 1 Arkansas Best Corp. (b) ............ 34 3 Atlantic Coast Airlines, Inc. (b) .............................. 60 2 Atlas Air, Inc. (b) ................ 8 4 C.H. Robinson Worldwide, Inc. ...... 135 3 EGL, Inc. (b) ...................... 49 4 Expeditors International of Washington, Inc. ................. 140 1 Forward Air Corp. (b) .............. 39 2 Frontier Airlines, Inc. (b) ........ 13
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Transportation, continued: 3 Heartland Express, Inc. (b) ........ $ 71 6 J.B. Hunt Transport Services, Inc. (b) .............................. 173 3 Kansas City Southern Industries, Inc. (b) ......................... 55 1 Kirby Corp. (b) .................... 32 0 Landstar System, Inc. (b) .......... 48 2 Mesa Air Group, Inc. (b) ........... 17 1 Midwest Express Holdings, Inc. (b) .............................. 11 2 Overseas Shipholding Group, Inc. ... 40 1 Roadway Express, Inc. .............. 39 2 Skywest, Inc. ...................... 52 2 Swift Transportation Co., Inc. (b) .............................. 46 1 US Freightways Corp. ............... 55 8 Werner Enterprises, Inc. ........... 172 2 Yellow Corp. (b) ................... 53 ------- 1,596 ------- Utilities (5.9%): 3 AGL Resources, Inc. ................ 61 10 Alliant Energy Corp. ............... 266 1 American States Water Co. .......... 24 2 American Water Works Co., Inc. ..... 87 16 Aquila, Inc. ....................... 129 2 Atmos Energy Corp. ................. 57 3 Avista Corp. ....................... 36 1 Black Hills Corp. .................. 51 2 Boston Communications Group (b) .... 20 1 Cascade Natural Gas Corp. .......... 12 1 Central Vermont Public Services Corp. ............................ 10 1 CH Energy Group, Inc. .............. 45 4 Conectiv ........................... 113 12 DQE, Inc. .......................... 174 3 El Paso Electric Co. (b) ........... 39 2 Energen Corp. ...................... 55 8 Energy East Corp. .................. 172 2 Frontier Oil Corp. ................. 26 5 General Communication, Inc. (b) .... 31 0 Green Mountain Power Corp. ......... 5 3 Hawaiian Electric Industries, Inc. ............................. 117 7 IDACORP, Inc. ...................... 189 3 MDU Resources Group, Inc. .......... 86 5 National Fuel Gas Co. .............. 114 1 New Jersey Resources Corp. ......... 44 7 Northeast Utilities ................ 124 1 Northwest Natural Gas Co. .......... 40 2 Northwestern Corp. ................. 26 4 NSTAR .............................. 158 0 OGE Energy Corp. ................... 0 9 Oneok, Inc. ........................ 206 6 PNM Resources, Inc. ................ 143 13 Potomac Electric Power Co. ......... 271 5 Questar Corp. ...................... 136 4 Scana Corp. ........................ 110 7 Sierra Pacific Resources ........... 51 3 Southern Union Co. (b) ............. 52
Continued One Group Market Expansion Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 79 Report
Shares Security Description Value --------- ------------------------------------ ------- Common Stocks, continued: Utilities, continued: 2 Southwest Gas Corp. ................ $ 44 1 Southwestern Energy Co. (b) ........ 23 3 Telephone & Data Systems, Inc. ..... 210 2 UGI Corp. .......................... 49 1 UIL Holdings Corp. ................. 43 2 Unisource Energy Corp. ............. 34 0 Vectren Corp. ...................... 1 12 Wisconsin Energy Corp. ............. 302 3 WPS Resources Corp. ................ 109 ------- 4,095 ------- Total Common Stocks 68,976 -------
Shares Security Description Value --------- ------------------------------------ ------- Investment Companies (2.0%): 1,412 One Group Prime Money Market, Class I ................................ $ 1,412 ------- Total Investment Companies 1,412 ------- Total (Cost $66,376)(a) $70,388 =======
------------ Percentages indicated are based on net assets of $69,961. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $10,367 Unrealized depreciation...................... (6,355) ------- Net unrealized appreciation (depreciation)... $ 4,012 =======
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. Amounts shown as 0 rounded to less than 1000. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 80 Report One Group Technology Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value ------ -------------------------------------- ------- Common Stocks (96.6%): Business Equipment & Services (7.5%): 6 Accenture Ltd. (b) ................... $ 118 86 AOL Time Warner, Inc. (b) ............ 1,270 5 Ceridian Corp. (b) ................... 85 17 First Data Corp. ..................... 647 1 Molex, Inc. .......................... 37 ------- 2,157 ------- Communications - Technology & Software (30.9%): 15 3Com Corp. (b) ....................... 65 2 Activision, Inc. (b) ................. 61 57 ADC Telecommunications, Inc. (b) ..... 130 7 Adobe Systems, Inc. .................. 194 8 Advanced Fibre Communication, Inc. (b) ................................ 127 2 Affiliated Computer Services, Class A .................................. 95 8 BMC Software, Inc. (b) ............... 139 6 Cadence Design Systems, Inc. (b) ..... 100 142 Cisco Systems, Inc. (b) .............. 1,981 3 Computer Sciences Corp. (b) .......... 148 7 Comverse Technology, Inc. (b) ........ 67 4 Harris Corp. ......................... 138 8 Informatica Corp. (b) ................ 58 5 Intuit, Inc. (b) ..................... 244 36 Lucent Technologies, Inc. ............ 60 3 Macromedia, Inc. (b) ................. 27 51 Microsoft Corp. (b) .................. 2,791 46 Motorola, Inc. ....................... 656 5 NetIQ Corp. (b) ...................... 106 101 Oracle Corp. (b) ..................... 959 32 Parametric Technology Corp. (b) ...... 108 3 Perot Systems Corp., Class A (b) ..... 28 3 Scientific-Atlanta, Inc. ............. 46 6 Siebel Systems, Inc. (b) ............. 80 2 Symantec Corp. (b) ................... 79 2 Synopsys, Inc. (b) ................... 93 6 Titan Corp. (b) ...................... 102 6 Veritas Software Corp. (b) ........... 121 ------- 8,803 ------- Financial Services (1.2%): 12 Concord EFS, Inc. (b) ................ 353 ------- Hardware & Services (25.7%): 10 Apple Computer, Inc. (b) ............. 172 16 Automatic Data Processing, Inc. ...... 675 2 Brocade Communications Systems, Inc. (b) ................................ 40 50 Dell Computer Corp. (b) .............. 1,306 11 Electronic Data Systems Corp. ........ 424 39 EMC Corp. (b) ........................ 291 6 Fiserv, Inc. (b) ..................... 213 8 Flextronics International Ltd. (b) ... 56 57 Hewlett-Packard Co. .................. 872 31 IBM Corp. ............................ 2,224 6 Network Appliance, Inc. (b) .......... 77
Shares Security Description Value ------ -------------------------------------- ------- Common Stocks, continued: Hardware & Services, continued: 10 Paychex, Inc. ........................ $ 304 8 Sanmina Corp. (b) .................... 49 11 Solectron Corp. (b) .................. 68 62 Sun Microsystems, Inc. (b) ........... 312 9 Sungard Data Systems, Inc. (b) ....... 241 ------- 7,324 ------- Internet (2.3%): 7 eBay, Inc. (b) ....................... 438 7 Sybase, Inc. (b) ..................... 77 11 Yahoo, Inc. (b) ...................... 156 ------- 671 ------- Semiconductors (22.2%): 0 Agere Systems, Inc., Class A (b) ..... 1 9 Agere Systems, Inc., Class B (b) ..... 14 10 Agilent Technologies (b) ............. 232 3 Altera Corp. (b) ..................... 41 7 Analog Devices, Inc. (b) ............. 211 33 Applied Materials, Inc. (b) .......... 631 9 Conexant Systems, Inc. (b) ........... 14 5 Cypress Semiconductor Corp. (b) ...... 77 3 Fairchild Semicon International, Inc. (b) ................................ 78 124 Intel Corp. .......................... 2,259 3 International Rectifier Corp. (b) .... 82 4 KLA-Tencor Corp. (b) ................. 189 4 Lam Research Corp. (b) ............... 65 7 Linear Technology Corp. .............. 229 6 Maxim Integrated Products, Inc. (b) ................................ 226 10 Micron Technology, Inc. (b) .......... 200 3 Skyworks Solutions, Inc. (b) ......... 17 23 STMicroelectronics N V ............... 552 5 Teradyne, Inc. (b) ................... 122 38 Texas Instruments, Inc. .............. 894 6 Vishay Intenational Technology, Inc. (b) ................................ 130 4 Xilinx, Inc. (b) ..................... 87 ------- 6,351 ------- Technology (6.6%): 5 Andrew Corporation (b) ............... 66 6 Arrow Electronics, Inc. (b) .......... 127 27 Ascential Software Corp. (b) ......... 75 10 ASML Holding N V (b) ................. 144 8 Avnet, Inc. .......................... 167 3 Electronic Arts, Inc. (b) ............ 225 2 Jabil Circuit, Inc. (b) .............. 40 2 Lexmark International Group, Inc. (b) ................................ 82 2 LSI Logic Corp. (b) .................. 20 4 National Instruments Corp. (b) ....... 137 4 Novellus Systems, Inc. (b) ........... 139 5 PeopleSoft, Inc. (b) ................. 74 2 Qlogic Corp. (b) ..................... 72
Continued One Group Technology Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 81 Report
Shares Security Description Value ------ -------------------------------------- ------- Common Stocks, continued: Technology, continued: 19 Qualcomm, Inc. (b) ................... $ 508 ------- 1,876 ------- Utilities (0.2%): 8 Tekelec (b) .......................... 66 ------- Total Common Stocks 27,601 -------
Shares Security Description Value ------ -------------------------------------- ------- Investment Companies (3.3%): 953 One Group Prime Money Market Fund, Class I ............................ $ 953 ------- Total Investment Companies 953 ------- Total (Cost $52,195)(a) $28,554 =======
------------ Percentages indicated are based on net assets of $28,592. (a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of the losses, recognized for financial reporting purposes in excess of federal income tax reporting. Cost for federal income tax purposes differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 898 Unrealized depreciation...................... (28,436) -------- Net unrealized appreciation (depreciation)... $(27,538) ========
(b) Non-income producing securities. Amounts shown as 0 rounded to less than 1,000. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 82 Report One Group Health Sciences Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares Security Description Value ------ -------------------------------------- ------- Common Stocks (97.8%): Health Care (97.8%): 11 Abbott Laboratories .................. $ 422 16 Affymetrix, Inc. (b) ................. 372 10 Allergan, Inc. ....................... 683 7 AmerisourceBergen Corp. .............. 547 19 Amgen, Inc. (b) ...................... 794 5 Andrx Group (b) ...................... 129 5 Anthem, Inc. (b) ..................... 364 15 Baxter International, Inc. ........... 682 6 Beckman Coulter, Inc. ................ 279 10 Bristol-Myers Squibb Co. ............. 254 17 Eli Lilly & Co. ...................... 982 17 Gilead Sciences, Inc. (b) ............ 544 4 Guidant Corp. (b) .................... 112 12 HCA-The Healthcare Corp. ............. 571 15 IDEC Pharmaceuticals Corp. (b) ....... 523 22 King Pharmaceuticals, Inc. (b) ....... 498 9 McKesson HBOC, Inc. .................. 304
Shares Security Description Value ------ -------------------------------------- ------- Common Stocks, continued: Health Care, continued: 22 MedImmune, Inc. (b) .................. $ 571 21 Medtronic, Inc. ...................... 903 43 Pfizer, Inc. ......................... 1,512 22 Pharmacia Corp. ...................... 831 27 Protein Design Labs, Inc. (b) ........ 295 18 Schering-Plough Corp. ................ 444 10 Universal Health Services, Inc., Class B (b) .............................. 505 17 Waters Corp. (b) ..................... 450 19 Wyeth ................................ 970 6 Zimmer Holdings, Inc. (b) ............ 221 ------- Total Common Stocks 14,762 ------- Investment Companies (2.0%): 304 One Group Prime Money Market, Class I ................................... 304 ------- Total Investment Companies 304 ------- Total (Cost $16,944)(a) $15,066 =======
------------ Percentages indicated are based on net assets of $15,096. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 698 Unrealized depreciation...................... (2,576) ------- Net unrealized appreciation (depreciation)... $(1,878) =======
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 83 Report One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks (91.8%): Argentina (0.1%): 56 Banco Frances Rio SA ............. $ 26 36 Grupo Financiero Galicia ARS (b) ............................ 19 482 PC Holdings SA ................... 279 16 Siderar SA, Class A (b) .......... 9 254 Siderca SA ....................... 426 44 Telecom Argentina SA-SP ADR (b) ............................ 29 125 Transportadora de Has Del Sur .... 16 8 YPF Sociedad Anonima ............. 94 -------- 898 -------- Australia (3.3%): 74 Amcor Ltd. ....................... 341 114 Amp Ltd. ......................... 1,003 83 Australian Gas Light Co. ......... 461 85 Boral Ltd. ....................... 180 99 Brambles Industries Ltd. ......... 525 321 Broken Hill Proprietary Co., Ltd. ........................... 1,858 91 Coca-Cola Amatil Ltd. ............ 324 139 Coles Myer Ltd. .................. 517 120 Commonwealth Bank of Australia ... 2,218 44 Computershare Ltd. ............... 54 14 CSL Ltd. ......................... 250 106 CSR Ltd. ......................... 381 178 Foster's Brewing Group Ltd. ...... 471 64 Futuris Corp., Ltd. .............. 49 224 General Property Trust ........... 354 286 Goodman Fielder Ltd. ............. 268 38 Iluka Resources Ltd. ............. 106 71 James Hardie Industries Nv ....... 257 35 Leighton Holdings Ltd. ........... 205 44 Lend Lease Corp. ................. 260 142 National Australia Bank Ltd. ..... 2,821 148 News Corp., Ltd. ................. 806 42 Onesteel Ltd. .................... 31 9 Orica Ltd. ....................... 46 33 Origin Energy Ltd. ............... 62 37 Pacific Dunlop Ltd. .............. 132 22 Paperlinx Ltd. ................... 59 73 QBE Insurance Group Ltd. ......... 272 36 Rio Tinto Ltd. ................... 683 50 Santos Ltd. ...................... 181 82 Southcorp Holdings Ltd. .......... 244 150 Stockland Trust Group ............ 370 36 Tabcorp Holdings Ltd. ............ 255 280 Telstra Corp., Ltd. .............. 733 15 Wesfarmers Ltd. .................. 223 200 Westfield Trust .................. 381 7 Westfield Trust (b) .............. 14 201 Westpac Banking Corp., Ltd. ...... 1,829 144 WMC Ltd. ......................... 737
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Australia, continued: 86 Woolworth Ltd. ................... $ 632 -------- 20,593 -------- Austria (0.8%): 6 Boehler Uddeholm ................. 309 11 BWT AG ........................... 260 9 Flughafen Wien AG ................ 299 6 Mayr-Melnhof Karton AG ........... 418 15 OMV AG ........................... 1,508 16 Osterreichische Elekrizitaetswirtschafts-AG, Class A ........................ 1,351 11 Radex-Heraklith Industriebeteiligungs AG ....... 84 9 VA Technologie AG ................ 225 29 Wienerberger Baustoffindustrie AG ............................. 508 -------- 4,962 -------- Belgium (1.8%): 16 Agfa Gevaert NV .................. 291 4 Bekaert SA ....................... 189 6 Colrayt .......................... 281 8 Electrabel SA .................... 1,902 162 Fortis ........................... 3,477 22 Groupe Bruxelles Lambert SA ...... 1,154 25 Interbrew Co. .................... 718 29 Kredietbank NV ................... 1,175 0 SA D'Ieteren NV .................. 72 13 Solvay SA ........................ 967 36 Suez Lyonnaise Des Eaux Strip .... 0 12 Total Fina SA, Strip ............. 0 19 UCB Cap Npv Ord .................. 686 3 Union Miniere Group SA ........... 129 -------- 11,041 -------- Brazil (0.4%): 205 Ambev Cia Bebid .................. 27 2 Brasil Telecom Participacoes SA ADR ............................ 54 43,175 Centrais Electricas Brasileiras SA ............................. 445 9,188 Centrais Geradoras do Sul do Brasil SA (b) .................. 13 195 Cia Paulista de Forca e Luz ...... 5 4,228 Companhia Siderurgica Nacional ... 67 5 Companhia Vidraria Santa Maria ... 0 195 CPFL Geracao de Energia SA ....... 0 1,865 Embratel Participacoes SA ........ 2 10 Embratel Participacoes SA ADR .... 4 33 Souza Cruz SA .................... 170 2,130 Tele Centro Sul Participacoes .... 11 10,727 Tele Norte Leste Participacoes ... 90 4,045 Telefonica Data Brasil Holding (b) ............................ 1 28 Telefonica SA ADR (b) ............ 688 83 Telekom Austria AG (b) ........... 666
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 84 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Brazil, continued: 3,244 Telesp Celular Participacoes ..... $ 5 4,045 Telesp Participacoes SA .......... 35 -------- 2,283 -------- Canada (0.0%): 3 Alcan Aluminum Ltd. .............. 96 -------- Chile (0.2%): 9 Banco de Santiago ADR ............ 158 9 Cristalerias de Chile ADR ........ 140 14 Embotelladora Andina SA ADR ...... 88 7 Embotelladora Andina SA, Series A ADR ............................ 49 23 Enersis SA ADR (b) ............... 131 17 Madeco SA ADR (b) ................ 15 14 Masisa SA ADR .................... 114 6 Quimica Y Minera Chile SA ADR .... 142 35 Telecomunicaciones de Chile SA ADR ............................ 426 5 Vina Concho y Toro SA ADR ........ 149 -------- 1,412 -------- Denmark (1.1%): 3 Bang & Olufsen Holding A/S ....... 81 3 Carlsberg A/S, Class B ........... 175 0 D/S 1912, Class B ................ 586 0 D/S Svendborg A/S, Class B ....... 571 9 Danisco A/S ...................... 311 75 Danske Bank ...................... 1,372 12 Falck A/S ........................ 415 6 FLS Industries A/S, Class B ...... 75 41 GN Store Nord A/S (GN Great Nordic) ........................ 149 7 ISS A/S (b) ...................... 354 63 Nordic Baltic Holding AB ......... 343 43 Novo Nordisk A/S ................. 1,422 9 Novozymes A/S, Class B (b) ....... 208 23 Tele Danmark A/S, Class B ........ 630 -------- 6,692 -------- Finland (0.7%): 2 AvestaPolarit Oyj Abp ............ 9 6 FNM Instrumentarium .............. 161 55 Nokia Corp., ADR ................. 796 141 Nokia Oyj, Class A ............... 2,064 20 Outokumpo Oy, Class A ............ 242 4 Pohjola Group, Class D PLC ....... 63 28 Sampo Insurance Co. .............. 215 34 Sonera Group Oyj ................. 130 0 Tieto Corp., Class B ............. 12 10 UPM-Kymmene Corp. ................ 381 -------- 4,073 --------
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: France (8.6%): 18 Accor SA ......................... $ 714 100 Alcatel Alsthom .................. 693 127 AXA .............................. 2,323 76 Banque Nationale de Paris ........ 4,216 7 BBVA Banco Frances SA (b) ........ 10 2 Beghin-Say (b) ................... 76 6 BIC .............................. 250 19 Bouygues SA ...................... 521 11 Cap Gemini Sogeti SA ............. 433 48 Carrefour SA ..................... 2,617 6 Casino Guichard-Perrachon ........ 527 2 Cereol (b) ....................... 62 2 Club Mediterranee SA ............. 75 25 Compagnie de Saint-Gobain ........ 1,122 3 Compagnie Francaise d'Etudes et de Construction Technip ........... 307 9 Dassault Systems SA .............. 419 6 Essilor International ............ 246 35 France Telecom SA ................ 329 11 Groupe Danone .................... 1,511 1 Imetal SA ........................ 191 6 L'Air Liquide .................... 939 8 L'Air Liquide, Registered Shares (c) ............................ 1,203 34 L'Oreal SA ....................... 2,647 10 Lafarge SA ....................... 1,038 11 Lagardere SCA .................... 481 23 LVMH (Louis Vuitton Moet Hennessy) ...................... 1,161 14 Michelin, Class B, Registered Shares ......................... 553 0 Natexis SA ....................... 6 6 Pechiney SA, Class A ............. 262 6 Pernod-Ricard .................... 565 8 Pinault Printemps Redoute SA ..... 890 2 Provimi (b) ...................... 40 17 Psa Peugeot Citroen .............. 881 57 Rhone-Poulenc SA ................. 4,060 3 Sagem SA ......................... 201 37 Sanofi Synthelabo SA ............. 2,251 30 Societe Generale, Class A ........ 1,957 16 Sodexho Alliance SA .............. 597 48 STMicroelectronics NV ............ 1,204 90 Suez Lyonnaise Des Eaux SA ....... 2,394 12 Thomson CSF ...................... 491 64 Total SA, Class B (c) ............ 10,343 6 Valeo SA ......................... 258 4 Vinci ............................ 249 74 Vivendi Universal SA ............. 1,604 -------- 52,917 -------- Germany (10.6%): 8 Adidas AG ........................ 621 25 Allianz AG ....................... 5,068
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 85 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Germany, continued: 2 AMB Aachener und Muenchener Beteiligungs AG ................ $ 243 85 BASF AG .......................... 3,948 109 Bayer AG ......................... 3,467 70 Bayerische Vereinsbank AG ........ 2,281 9 Beiersdorf AG, Series ABC ........ 1,079 8 Carbon AG (b) .................... 139 3 CKAG Colonia Konzern AG .......... 200 20 Continental AG ................... 349 138 Daimler-Chrysler AG .............. 6,659 84 Deutsche Bank AG, Registered Shares ......................... 5,854 313 Deutsche Telekom AG .............. 2,939 5 Douglas Holding AG ............... 110 34 Elan Corp., PLC (b) .............. 188 6 Heidelberger Zement AG ........... 309 12 Karstadt Quelle AG ............... 301 12 Linde AG ......................... 628 41 Lufthansa AG ..................... 570 20 Man AG ........................... 429 18 Merck KGaA ....................... 477 27 Metro AG ......................... 838 1 Metro AG (b) ..................... 14 14 Muenchener Rueckversicherungs Gesellschaft AG, Registered Shares ......................... 3,380 24 Preussag AG ...................... 590 59 RWE AG ........................... 2,332 35 SAP AG ........................... 3,437 28 Schering AG ...................... 1,780 138 Siemens AG ....................... 8,276 68 Thyssen Krupp AG ................. 1,047 94 VEBA AG .......................... 5,505 43 Volkswagen AG .................... 2,102 -------- 65,160 -------- Greece (0.6%): 12 Alpha Credit Bank SA ............. 166 12 Attica Enterprises (b) ........... 42 14 Bank of Piraeus .................. 101 8 Commercial Bank of Greece SA ..... 167 14 Eurobank ......................... 193 3 Fourlis SA ....................... 11 9 Hellenic Bottling Co., SA ........ 152 8 Hellenic Petroleum SA ............ 49 28 Hellenic Telecommunication Organization ................... 448 8 Intracom SA ...................... 72 6 Lambrakis Press SA ............... 17 38 National Bank of Greece SA ....... 810 24 Panafon Hellenic Telecom SA ...... 121 2 Papastratos Cigarette Co. ........ 34
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Greece, continued: 80 Public Power Corp., Registered Shares GDR (b) ................. $ 1,043 3 Titan Cement Co. ................. 118 -------- 3,544 -------- Hong Kong (2.0%): 72 Bank of East Asia Ltd. ........... 144 120 Beijing Datang Power Generation Ltd. ........................... 53 248 Cathay Pacific Airways Ltd. ...... 380 499 China Mobile Ltd. (b) ............ 1,478 145 Citic Pacific Ltd. ............... 314 202 CLP Holdings Ltd. ................ 804 240 Denway Motors Ltd. ............... 68 88 Hang Seng Bank Ltd. .............. 942 447 Hong Kong & China Gas Co., Ltd. ........................... 593 321 HSBC Holdings PLC ................ 3,690 126 Huaneng Power International, Inc. ........................... 103 210 Hutchison Whampoa Ltd. ........... 1,569 22 Hysan Development Co., Ltd. ...... 21 226 Johnson Electric Holdings ........ 268 408 Legend Holdings Ltd. ............. 149 68 Li & Fung Ltd. ................... 92 588 Pacific Century Cyberworks Ltd. (b) ............................ 139 1,200 Petrochina Co., Ltd. ............. 255 18 Shangri-La Asia Ltd. ............. 15 103 Sino Land Co. .................... 39 62 Sun Hung Kai Properties Ltd. ..... 471 143 Sunevision Holdings Ltd. (b) ..... 27 45 Swire Pacific Ltd., Class A ...... 230 250 Tan Chong International Ltd. ..... 39 75 Television Broadcasts Ltd. ....... 319 30 Wharf Holdings ................... 71 -------- 12,273 -------- Hungary (0.4%): 4 Danubius Hotel and SpA Rt ........ 63 8 Gedeon Richter Rt ................ 435 270 Matav Rt ......................... 864 22 MOL Magyar Olaj-Es Gazipari Rt ... 424 108 OTP Bank Rt ...................... 850 -------- 2,636 -------- India (0.7%): 74 Arvind Mills Ltd. GDR (b) ........ 26 3 Ashok Leyland Ltd. GDR (b) ....... 19 21 Bajaj Auto Ltd. GDR .............. 213 22 Bombay Dye & Manufacturing Co. GDR ............................ 20 89 Century Textile & Industries Ltd. GDR ............................ 105 14 East India Hotels Ltd. GDR ....... 65 12 Grasim Industries Ltd. GDR ....... 79
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 86 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: India, continued: 30 Grasim Industries Ltd. GDR ....... $ 201 19 Great Eastern Shipping Co. GDR ... 70 53 Gujarat Ambuja Cements Ltd. GDR ............................ 220 7 Hexaware GDR (b) ................. 4 17 Hindalco Industries Ltd. GDR ..... 250 10 ICICI Bank Ltd. ADR .............. 71 56 India Cements Ltd. GDR ........... 35 23 Indian Aluminum Co., Ltd. GDR .... 39 19 Indian Hotels Co., Ltd. GDR ...... 80 10 Indian Petrochemicals Corp., Ltd. GDR ............................ 88 41 Indian Rayon & Industries Ltd. GDR (b) ............................ 74 95 Indo Gulf Fertilizers and Chemicals Corp., Ltd. GDR (b) ............................ 109 11 Infosys Technologies Ltd. ........ 543 17 ITC Ltd. GDR ..................... 231 28 Larsen & Toubro Ltd. GDR ......... 204 24 Mahanagar Telephone ADR (b) ...... 138 8 Mahindra & Mahindra Ltd. GDR (b) ............................ 17 20 Ranbaxy Laboratories Ltd. GDR .... 391 8 Raymond Ltd. GDR ................. 33 61 Reliance Industries Ltd. GDR ..... 744 20 State Bank of India GDR .......... 227 20 Steel Authority of India Ltd. GDR (b) ............................ 70 16 Tata Engineering & Locomotive Co., Ltd. GDR (b) ................... 51 25 United Phosphorus Ltd. GDR ....... 71 -------- 4,488 -------- Ireland (0.7%): 105 Allied Irish Banks PLC ........... 1,385 24 Allied Irish Banks PLC ........... 323 17 CRH PLC .......................... 277 28 CRH PLC .......................... 476 7 DCC PLC .......................... 81 67 Independent Newspapers PLC ....... 133 1 Iona Technologies PLC (b) ........ 8 38 Irish Life & Permanent PLC ....... 556 17 Kerry Group, Class A PLC ......... 252 77 Ryanair Holdings PLC (b) ......... 475 105 Smurfit (Jefferson) Group ........ 321 -------- 4,287 -------- Israel (0.5%): 0 Africa-Israel Investments Ltd. (b) ............................ 31 1 Agis Industries Ltd. (b) ......... 5 2 American Israeli Paper Mills ..... 51 229 Bank Hapoalim Ltd. ............... 360 340 Bezeq Israeli Telecom Co. (b) .... 338 5 Check Point Software Technologies Ltd. (b) ....................... 68 9 Clal Insurance Enterprise Holdings ....................... 105
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Israel, continued: 13 ECI Telecommunications (b) ....... $ 40 6 Elco Holdings Ltd. (b) ........... 41 80 First International Bank of Israel, Class 1 ................ 54 20 First International Bank of Israel, Class 5 ................ 65 3 Gilat Satellite Networks Ltd. (b) ............................ 3 7 IDB Holding Corp., Ltd. (b) ...... 119 49 Industrial Buildings Corp. ....... 43 278 Israel Chemicals Ltd. ............ 278 0 Israel Corp. Ltd. (b) ............ 12 1 Israel Corp., Ltd. (b) ........... 84 0 Israel Petrochemical Enterprises .................... 1 6 Koor Industries ADR (b) .......... 30 94 Makhteshim Agan Industries ....... 138 22 Osem Investment Ltd. ............. 180 1 Property & Building Corp., Ltd. ........................... 47 8 Scitex Corp., Ltd. (b) ........... 17 11 Super-Sol Ltd. ADR ............... 175 11 Teva Pharmaceutical ADR .......... 761 -------- 3,046 -------- Italy (6.9%): 230 Alitalia SpA (b) ................. 149 206 Assicurazioni Generali SpA ....... 4,882 150 Banca Intesa SpA ................. 332 82 Banca Popolare di Milano ......... 333 212 Bancario San Paolo di Torino ..... 2,131 759 Banco Ambrosiano Veneto SpA ...... 2,317 296 Bipop-Carire SpA ................. 399 44 Bulgari SpA ...................... 275 351 Enel Spa ......................... 2,013 588 Eni Spa .......................... 9,344 60 Fiat SpA ......................... 750 18 Fiat SpA (Non-convertible) ....... 152 32 Italcementi SpA .................. 315 51 Italgas SpA ...................... 562 37 La Rinascente SpA ................ 142 13 Marzotto (Gaetano) & Figli SpA ... 98 147 Mediaset SpA ..................... 1,141 126 Mediobanca SpA ................... 1,162 49 Mondadori (Arnoldo) Editore SpA ............................ 327 115 Parmalat Finanziaria SpA ......... 355 283 Pirelli SpA ...................... 302 92 Riuniune Adriatici de Sicurta SpA ............................ 1,237 1,093 Seat Pagine Gialle SpA (b) ....... 801 95 Sirti SpA ........................ 92 86 Snam Rete Gas SpA ................ 253 62 Snia SpA ......................... 126 511 Telecom Italia Mobile SpA ........ 3,999
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 87 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Italy, continued: 775 Telecom Italia Mobile SpA di Risp ........................... $ 3,177 40 Telecom Italia SpA ............... 152 324 Telecom Italia SpA ............... 1,716 35 Tiscali SpA (b) .................. 214 698 Unicredito Italiano SpA .......... 3,159 -------- 42,407 -------- Japan (28.5%): 54 77th Bank Ltd. ................... 213 14 Acom Co., Ltd. ................... 926 10 Advantest Corp. .................. 641 70 Ajinomoto Co., Inc. .............. 751 28 Alps Electric Co., Ltd. .......... 354 38 Amada Co., Ltd. .................. 184 25 Amano Corp. ...................... 180 9 Aoyama Trading Co., Ltd. ......... 101 79 Asahi Breweries Ltd. ............. 661 166 Asahi Chemical Industry Co., Ltd. ........................... 553 124 Asahi Glass Co., Ltd. ............ 793 5 Autobacs Seven Co., Ltd. ......... 153 136 Bank of Yokohama Ltd. ............ 579 12 Benesse Corp. .................... 217 122 Canon, Inc. ...................... 4,611 44 Casio Computer Co., Ltd. ......... 215 0 Central Japan Railway Co. ........ 731 113 Chichibu Onoda Cement Co. ........ 210 28 Chugai Pharmaceutical Co., Ltd. ........................... 335 63 Citizen Watch Co., Ltd. .......... 424 24 Credit Saison Co., Ltd. .......... 567 11 CSK Corp. ........................ 392 98 Dai Nippon Printing Co., Ltd. .... 1,301 34 Dai-Ichi Pharmaceuticals ......... 621 53 Daicel Chemical Industries Ltd. ........................... 181 56 Daiei, Inc. (b) .................. 96 20 Daifuku Co., Ltd. ................ 84 30 Daikin Industries Ltd. ........... 549 37 Daimura, Inc. .................... 170 103 Dainippon Ink & Chemicals, Inc. ........................... 221 20 Daito Trust Construction Co., Ltd. ........................... 382 64 Daiwa House Industry Co., Ltd. ... 391 161 Daiwa Securities Co., Ltd. ....... 1,044 56 Denki Kagaku Kogyo Kabushiki Kaisha ......................... 178 84 Denso Corp. ...................... 1,314 45 Dianippon Screen Manufacturing Co., Ltd. ...................... 233 0 East Japan Railway Co. ........... 2,031 37 Ebara Corp. ...................... 199 36 Eisai Co., Ltd. .................. 925 15 Fanuc Co., Ltd. .................. 763 57 Fuji Photo Film Co., Ltd. ........ 1,840 0 Fuji Television Network, Inc. .... 289
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Japan, continued: 48 Fujikura Ltd. .................... $ 175 217 Fujitsu Ltd. ..................... 1,514 82 Furukawa Electric Co., Ltd. ...... 314 81 Gunma Bank Ltd. .................. 374 31 Gunze Ltd. ....................... 132 30 Hankyu Department Stores, Inc. ... 228 6 Hirose Electric Co., Ltd. ........ 514 356 Hitachi Ltd. ..................... 2,302 171 Hitachi Zosen Corp. (b) .......... 100 81 Honda Motor Co., Ltd. ............ 3,292 15 House Foods Corp. ................ 146 17 Hoya Corp. ....................... 1,244 25 Isetan Co., Ltd. ................. 252 59 Ishihara Sangyo Kaisha Ltd. (b) ............................ 93 46 ITO-Yokado Co., Ltd. ............. 2,303 171 Itochu Corp. ..................... 599 114 Japan Airlines Co., Ltd. ......... 321 155 Japan Energy Corp. ............... 235 32 JGC Corp. ........................ 227 33 JUSCO Co., Ltd. .................. 881 118 Kajima Corp. ..................... 335 31 Kamigumi Co., Ltd. ............... 130 91 Kanebo Ltd. (b) .................. 155 43 Kaneka Corp. ..................... 300 120 Kansai Electric Power Co., Inc. ........................... 1,889 75 Kao Corp. ........................ 1,727 177 Kawasaki Heavy Industries Ltd. (b) ............................ 226 97 Kawasaki Kisen Kaisha Ltd. ....... 135 364 Kawasaki Steel Corp. ............. 474 95 Keihin Electric Express Railway Co., Ltd. ...................... 429 24 Kikkoman Corp. ................... 151 45 Kinden Corp. ..................... 214 197 Kinki Nippon Railway Co., Ltd. ... 644 109 Kirin Brewery Co., Ltd. .......... 764 20 Kokuyo Co., Ltd. ................. 211 116 Komatsu Ltd. ..................... 415 10 Komori Corp. ..................... 125 16 Konami Co., Ltd. ................. 340 40 Konica Corp. ..................... 259 29 Koyo Seiko Co., Ltd. ............. 144 160 Kubota Corp. ..................... 487 46 Kuraray Co., Ltd. ................ 301 18 Kurita Water Industries Ltd. ..... 222 20 Kyocera Corp. .................... 1,424 49 Kyowa Hakko Kogyo Co., Ltd. ...... 266 17 Makita Corp. ..................... 110 41 Marui Co., Ltd. .................. 520 244 Matsushita Electric Industrial Co., Ltd. ...................... 3,328 42 Meiji Milk Products Co., Ltd. .... 116
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 88 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Japan, continued: 40 Meiji Seika Kaisha Ltd. .......... $ 143 0 Millea Holdings, Inc. (b) ........ 1,437 44 Minebea Co., Ltd. ................ 258 232 Mitsubishi Chemical Corp. ........ 540 171 Mitsubishi Corp. ................. 1,237 251 Mitsubishi Electric Corp. ........ 1,127 140 Mitsubishi Estate Co., Ltd. ...... 1,145 68 Mitsubishi Gas Chemical Co., Inc. ........................... 124 396 Mitsubishi Heavy Industries Ltd. ........................... 1,199 30 Mitsubishi Logistics Corp. ....... 204 135 Mitsubishi Materials Corp. ....... 268 34 Mitsubishi Paper Mills Ltd. ...... 50 101 Mitsubishi Rayon Co., Ltd. ....... 329 1 Mitsubishi Tokyo Financial Group, Inc. ........................... 3,849 182 Mitsui & Co., Ltd. ............... 1,218 118 Mitsui Engineering & Shipbuilding Co., Ltd. (b) .................. 148 100 Mitsui Fudosan Co., Ltd. ......... 884 182 Mitsui Marine & Fire Insurance Co., Ltd. ...................... 979 68 Mitsui Mining & Smelting Co., Ltd. ........................... 203 59 Mitsukoshi Ltd. .................. 175 1 Mizuho Holdings, Inc. ............ 1,558 14 Mori Seiki Co., Ltd. ............. 128 37 Murata Manufacturing Co., Ltd. ... 2,364 8 Namco Ltd. ....................... 151 183 NEC Corp. ........................ 1,273 48 NGK Insulators Ltd. .............. 380 31 NGK Spark Plug Co., Ltd. ......... 235 49 Nichirei Corp. ................... 157 172 Nikko Securities Co., Ltd. ....... 868 39 Nikon Corp. ...................... 432 13 Nintendo Co., Ltd. ............... 1,973 19 Nippon Comsys Corp. .............. 105 123 Nippon Express Co., Ltd. ......... 652 42 Nippon Meat Packers, Inc. ........ 526 196 Nippon Oil Co. ................... 1,014 67 Nippon Sheet Glass Co., Ltd. ..... 226 24 Nippon Shokubai K.K. Co. ......... 121 777 Nippon Steel Co. ................. 1,212 0 Nippon Telegraph and Telephone Corp. (c) ...................... 1,876 0 Nippon Unipac Holding ............ 644 135 Nippon Yusen Kabushiki Kaisha .... 465 39 Nishimatsu Construction .......... 121 325 Nissan Motor Co., Ltd. (b) ....... 2,251 42 Nisshinbo Industries, Inc. ....... 195 14 Nissin Food Products Co., Ltd. ... 278 21 Nitto Denko Corp. ................ 698 235 Nomura Securities Co., Ltd. ...... 3,451 19 Noritake Co., Ltd. ............... 72
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Japan, continued: 69 NSK Ltd. ......................... $ 287 63 NTN Corp. ........................ 247 4 NTT Mobile Communication ......... 9,824 81 Obayashi Corp. ................... 230 0 Odakyu Electric Railway Co., Ltd. ........................... 0 106 Oji Paper Co., Ltd. .............. 608 38 Okumura Corp. .................... 119 25 Olympus Optical Co., Ltd. ........ 349 40 Omron Corp. ...................... 579 22 Onward Kashiyama Co., Ltd. ....... 216 11 Orix Corp. ....................... 863 290 Osaka Gas Co., Ltd. .............. 690 19 Pioneer Electronic Corp. ......... 340 14 Promise Co., Ltd. ................ 705 99 Ricoh ............................ 1,714 16 Rohm Co., Ltd. ................... 2,328 22 Sanden Corp. ..................... 79 55 Sankyo Co., Ltd. ................. 748 8 Sanrio Co., Ltd. ................. 73 229 Sanyo Electric Co., Ltd. ......... 999 36 Sapporo Breweries Ltd. ........... 96 30 Secom Co., Ltd. .................. 1,472 17 Sega Enterprises Ltd. (b) ........ 406 27 Seino Transportation Co., Ltd. ... 167 31 Seiyu Ltd. (b) ................... 120 69 Sekisui Chemical Co., Ltd. ....... 236 85 Sekisui House Ltd. ............... 625 52 Seven-Eleven Japan Ltd. .......... 2,048 127 Sharp Corp. ...................... 1,613 7 Shimachu Co., Ltd. ............... 120 16 Shimano, Inc. .................... 217 97 Shimizu Corp. .................... 320 46 Shin-Etsu Chemical Co. ........... 1,994 33 Shionogi & Co., Ltd. ............. 421 48 Shisiedo Co., Ltd. ............... 640 133 Showa Denko K.K. (b) ............. 216 14 Skylark Co., Ltd. ................ 322 8 SMC Corp. ........................ 910 57 Snow Brand Milk Products Co., Ltd. ........................... 60 26 Softbank Corp. ................... 361 114 Sony Corp. (c) ................... 6,005 436 Sumitomo Bank Ltd. ............... 2,128 177 Sumitomo Chemical Co. ............ 805 123 Sumitomo Corp. ................... 745 85 Sumitomo Electric Industries Ltd. ........................... 589 26 Sumitomo Forestry Co., Ltd. ...... 156 113 Sumitomo Heavy Industries Ltd. (b) ............................ 122 73 Sumitomo Metal Mining Co., Ltd. ........................... 330 59 Sumitomo Osaka Cement Co., Ltd. ........................... 88 43 Taisho Pharmaceutical Co. ........ 662
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 89 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Japan, continued: 17 Taiyo Yuden Co., Ltd. ............ $ 278 25 Takara Shuzo Co., Ltd. ........... 171 39 Takashimaya Co., Ltd. ............ 227 102 Takeda Chemical Industries Ltd. ........................... 4,476 11 Takefuji Corp. ................... 759 14 Takuma Co., Ltd. ................. 108 105 Teijin Ltd. ...................... 357 76 Teikoku Oil Co., Ltd. ............ 304 19 TKD Corp. ........................ 897 116 Tobu Railway Co., Ltd. ........... 324 23 Toho Co. ......................... 264 90 Tohoku Electric Power Co., Inc. ........................... 1,267 17 Tokyo Broadcasting System, Inc. ........................... 381 159 Tokyo Electric Power Co., Ltd. ... 3,266 19 Tokyo Electron Ltd. .............. 1,245 340 Tokyo Gas Co., Ltd. .............. 945 14 Tokyo Style Co., Ltd. ............ 128 136 Tokyu Corp. ...................... 526 91 Toppan Printing Co., Ltd. ........ 946 171 Toray Industries, Inc. ........... 458 346 Toshiba Corp. .................... 1,409 77 Tosoh Corp. ...................... 247 44 Tostem Corp. ..................... 751 48 Toto Ltd. ........................ 222 26 Toyo Seikan Kaisha Ltd. .......... 341 118 Toyobo Ltd. ...................... 180 303 Toyota Motor Corp. (c) ........... 8,033 3 Trans Cosmos, Inc. ............... 75 116 Ube Industries Ltd. .............. 181 0 UFJ Holdings, Inc. ............... 939 9 Uni-Charm Corp. .................. 319 22 UNY Co., Ltd. .................... 249 18 Wacoal Corp. ..................... 149 22 Yamaha Corp. ..................... 214 39 Yamanouchi Pharmaceutical Co., Ltd. ........................... 1,020 50 Yamato Transport Co., Ltd. ....... 911 27 Yamazaki Baking Co., Ltd. ........ 151 49 Yokogawa Electric Corp. .......... 380 -------- 174,723 -------- Korea (0.1%): 3 Samsung Electronics Co. .......... 684 -------- Luxembourg (0.1%): 24 Arcelor (b) ...................... 343 -------- Mexico (0.6%): 32 Alfa SA de CV, Class A ........... 55 658 America Movil SA de CV ........... 441 13 Apasco SA de CV .................. 76
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Mexico, continued: 26 Cemex SA de CV, Series CPO ....... $ 137 1 Cemex SA de OV ADR (b) ........... 0 209 Cifra SA de CV, Series V ......... 569 11 Compania Cervezas Unidas SA ADR .. 175 39 Controladora Comercial Mexicana SA de CV -- UB (b) ................ 0 25 Controladora Comercial Mexicana SA de CV -- UBC (b) ............... 15 65 Desc SA de CV, Series B .......... 36 60 Empresas ICA Sociedad Controladora SA de CV (b) ................... 15 22 Empresas La Moderna SA de CV (b) ............................ 16 40 Fomento Economico Mexicano SA (b) ............................ 157 40 Grupo Carso SA de CV, Series A-1 (b) ............................ 119 33 Grupo Continental SA ............. 45 35 Grupo Elektra SA de CV ........... 30 240 Grupo Financiero Bancomer SA de CV, Class O (b) ................ 196 33 Grupo Mexico SA de CV, Class B ... 47 85 Grupo Modelo SA, Series C ........ 200 160 Grupo Televisa SA, Series CPO (b) ............................ 302 32 Industrias Penoles SA, Series CP ............................. 64 65 Kimberly-Clark de Mexico SA de CV, Class A ........................ 174 166 Telefonos de Mexico SA, Series A .............................. 265 328 Telefonos de Mexico SA, Series L .............................. 522 30 Vitro SA ......................... 33 -------- 3,689 -------- Netherlands (2.6%): 67 ABN AMRO Holding NV .............. 1,223 47 Aegon NV ......................... 990 15 Akzo Nobel NV .................... 636 20 ASM Lithography Holding NV (b) ... 317 20 Corus Group PLC (b) .............. 26 37 Elsevier NV ...................... 497 17 Heineken NV ...................... 748 84 ING Groep NV ..................... 2,147 2 KLM Royal Dutch Airlines (b) ..... 29 15 Koninklijke Ahold NV ............. 318 42 Koninklijke KPN NV (b) ........... 195 58 Philips Electronics NV ........... 1,605 90 Royal Dutch Petroleum Co. ........ 4,999 20 TNT Post Groep NV ................ 458 27 Unilever NV ...................... 1,771 17 Wolters Kluwer CVA ............... 324 -------- 16,283 --------
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 90 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: New Zealand (0.3%): 268 Carter Holt Harvey Ltd. .......... $ 258 43 Fisher & Paykel Appliances & Holdings Ltd. .................. 190 41 Fisher & Paykel Industries Ltd. ........................... 164 98 Fletcher Building Ltd. ........... 131 136 Fletcher Challenge Forestry Ltd. (b) ............................ 16 125 Lion Nathan Ltd. ................. 340 403 Telecom Corp. of New Zealand Ltd. ........................... 965 -------- 2,064 -------- Norway (1.1%): 18 Bergesen Dy ASA, Class A ......... 384 201 Den Norske Bank ASA .............. 1,094 15 Elkem ASA ........................ 328 25 Frontline Ltd. (b) ............... 238 70 Golar LNG Ltd. (b) ............... 429 14 Hafslund ASA, Class A ............ 73 43 Hafslund ASA, Class B ............ 162 26 Kvaerner ASA, Class A (b) ........ 24 17 Leif Hoegh & Co., ASA ............ 223 30 Merkantildata ASA (b) ............ 14 20 Norsk Hydro ASA .................. 955 30 Norske Skogsindustrier ORD ASA ... 556 51 Orkla ASA, Series A .............. 986 24 Petroleum Geo-Services ASA (b) ... 86 16 Schibsted ASA .................... 192 13 Smedvig ASA, Class A ............. 83 12 Smedvig ASA, Class B ............. 65 62 Storebrand ASA ................... 375 77 Telenor ASA ...................... 273 43 Tomra Systems ASA ................ 335 -------- 6,875 -------- Philippines (0.3%): 1,103 Ayala Land, Inc. ................. 123 710 DMCI Holdings, Inc. (b) .......... 2 825 Filinvest Land, Inc. (b) ......... 37 137 International Container Terminal Services, Inc. ................. 7 149 Ionics Circuit, Inc. ............. 18 85 Manila Electric Co., Class B (b) ............................ 50 444 Metropolitan Bank & Trust Co. .... 296 1,928 Petron Corp. ..................... 65 37 Philippine Long Distance Telephone Co. (b) ........................ 271 55 Philippine National Bank (b) ..... 37 219 San Miguel Corp., Class B ........ 222 33 Security Bank Corp. .............. 9 3,802 SM Prime Holdings, Inc. .......... 415 2,543 Southeast Asia Cement Holdings, Inc. (b) ....................... 3
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Philippines, continued: 35 Union Bank Philippines ........... $ 14 330 Universal Robina Corp. ........... 30 -------- 1,599 -------- Portugal (0.6%): 184 Banco Commercial Portuguese ...... 639 14 Banco Espirito Santo e Commerical de Lisboa SA, Registered Shares ......................... 164 7 Banco Espirito Santo S/A (b) ..... 79 190 BPI-SGPS SA, Registered Shares ... 461 63 Brisa Auto-Estradas .............. 354 16 Cimpor-Cimentos de Portugal, SGPS SA ............................. 304 232 Electricidade de Portugal SA ..... 449 14 Estabelecimentos Jeronimo Martins & Filho SA (b) ................. 100 187 Portugal Telecom SA .............. 1,320 112 Sonae SGPS SA .................... 63 -------- 3,933 -------- Singapore (0.6%): 106 Capitaland Ltd. .................. 92 30 Chartered Semiconductor Manufacturing Ltd. (b) ......... 61 38 City Developments Ltd. ........... 123 5 Creative Technology Ltd. ......... 44 21 Cycle & Carriage Ltd. ............ 55 50 DBS Group Holdings Ltd. .......... 351 86 Keppel Corp. ..................... 201 176 Neptune Orient Lines Ltd. (b) .... 102 63 Oversea Chinese Banking Corp., Ltd. ........................... 414 104 Parkway Holdings ................. 51 70 Singapore Airlines Ltd. .......... 512 44 Singapore Press Holdings Ltd. .... 500 501 Singapore Telecommunications Ltd. ........................... 388 40 United Overseas Bank Ltd. ........ 288 30 Venture Manufacturing Ltd. ....... 239 -------- 3,421 -------- South Africa (0.5%): 45 African Oxygen Ltd. .............. 58 32 Amalgamated Banks of South Africa Ltd. ........................... 100 3 Anglogold Ltd. ................... 153 8 Anglovaal Industries Ltd. ........ 11 2 Astral Foods Ltd. ................ 3 9 Aveng Ltd. ....................... 7 13 Barlow Ltd. ...................... 81 31 Dimension Date Holdings PLC (b) ............................ 19 39 Driefontein Consolidated Ltd. .... 465 1 Edgars Consolidated Stores Ltd. ........................... 4
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 91 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: South Africa, continued: 342 Firstrand Ltd. ................... $ 254 12 Imperial Holdings Ltd. (b) ....... 66 4 Investec Group Ltd. (b) .......... 65 14 Iscor Ltd. (b) ................... 30 14 Kumba Resources Ltd. (b) ......... 65 15 Liberty Life Association of Africa Ltd. ........................... 83 18 Mih Holdings Ltd. (b) ............ 14 31 Murray & Roberts Holdings Ltd. (b) ............................ 27 19 Nampak Ltd. ...................... 25 10 Nasionale Pers Beperk Ltd., Series N .............................. 18 13 Nedcor Ltd. ...................... 147 33 New Africa Capital Ltd. .......... 20 13 Pepkor Ltd. ...................... 5 24 Rembrandt Group Ltd. (b) ......... 40 24 Remgro Ltd. ...................... 160 12 Rustenburg Platinum Holdings Ltd. ........................... 452 13 Sappi Ltd. (b) ................... 176 37 Sasol Ltd. ....................... 396 19 Shoprite Holdings Ltd. ........... 14 33 South African Breweries Ltd. ..... 264 72 Sun International Ltd. (b) ....... 11 9 Tiger Oats Ltd. .................. 58 6 Tradehold Ltd. (b) ............... 2 4 Western Areas Gold Mining Ltd. (b) ............................ 14 -------- 3,307 -------- Spain (4.0%): 8 Acerinox SA, Registered Shares ... 352 6 ACS, Actividades de Construccion y Servicios SA ................... 209 5 Altadis SA (b) ................... 103 19 Autopistas Cesa .................. 211 383 Banco Bilbao Vizcaya Argentina SA (c) ............................ 4,330 556 Banco Santander Central Hispano Americano SA ................... 4,413 31 Benetton Group SpA ............... 360 14 Corporacion Financiara Alba SA ... 312 44 Corporacion Mapfre SA ............ 348 43 Empresa Nacional de Electricidad SA ............................. 346 99 Endesa SA ........................ 1,440 13 Fomento de Construcciones y Contratas SA ................... 309 53 Gas Natural SDG SA ............... 1,028 21 Grupo Dragados SA ................ 374 119 Iberdrola SA ..................... 1,733 8 Inmobiliaria Metro SA ............ 160 2 Puleva Biotech S/A (b) ........... 8 174 Repsol SA ........................ 2,046 16 Sociedad General de Aquas de Barcelona SA ................... 193
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Spain, continued: 18 Sol Melia SA ..................... $ 137 34 Tabacalera SA .................... 696 18 Telefonica SA (b) ................ 152 544 Telefonica SA (b)(c) ............. 4,564 22 Telepizza SA (b) ................. 25 35 Union Electric Fenosa SA ......... 643 15 Vallehermoso SA .................. 144 -------- 24,636 -------- Sweden (1.3%): 11 Atlas Copco AB, Series A ......... 267 11 Drott AB ......................... 130 33 Electrolux AB, Series B .......... 671 200 Ericsson AB ADR (b) .............. 288 25 Gambro AB, Class A ............... 165 45 Hennes & Mauritz AB, Class B ..... 900 450 LM Ericsson AB, Series B ......... 680 11 Netcom AB, Class B (b) ........... 204 142 Nordic Baltic Holding AB ......... 773 68 Nordic Baltic Holding AB ......... 368 14 SAS AB (b) ....................... 93 34 Securitas AB, Class B ............ 703 21 Sek Skanska AB, Class B .......... 145 54 Skandia Forsakrings AB ........... 244 56 Skandiaviska Enskilda Banken, Class A ........................ 586 7 SKF AB, Series B ................. 184 19 Svenska Cellulosa AB, Series B ... 676 54 Svenska Handelsbanken, Class A ... 828 8 Trelleborg AB, Series B .......... 78 14 Volvo AB, Class B ................ 287 -------- 8,270 -------- Switzerland (2.2%): 31 ABB Ltd. (b) ..................... 278 7 Adecco SA ........................ 387 17 Compagnie Financiere Richemont UTS AG ............................. 387 8 Converium Holding AG (b) ......... 413 28 Credit Suisse Group (b) .......... 900 0 Givaudan ......................... 79 10 Nestle SA ........................ 2,308 72 Novartis AG ...................... 3,155 18 Roche Holding AG ................. 1,345 5 Roche Holding AG Ords ............ 535 0 Societe Generale de Surveillance Holdings SA .................... 131 8 Swiss Reinsurance Corp., Registered Shares .............. 763 1 Swisscom AG, Registered Shares ... 294
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 92 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Switzerland, continued: 3 Syngenta AG ...................... $ 203 12 The Swatch Group AG, Registered Shares ......................... 218 34 UBS AG, Registered Shares (b) .... 1,694 2 Zurich Financial Services AG ..... 446 -------- 13,536 -------- Thailand (0.8%): 242 Advance Agro PCL (b) ............. 99 500 Bangkok Bank PCL (b) ............. 825 144 Electricity Generating PCL ....... 143 139 Hana Microelectronics PCL ........ 236 57 I.C.C. International PCL ......... 255 127 Italian-Thai Development PCL (b) ............................ 93 144 K.R. Precision PCL (b) ........... 10 189 Nation Multimedia Group PCL (b) ............................ 69 282 Nation Multimedia Group PCL, Foreign Registered Shares (b) ............................ 113 20 Pizza PCL (b) .................... 21 173 PTT Exploration & Production Public Co., Ltd. ............... 500 6 Serm Suk PCL ..................... 34 1,242 Shin Corp., PCL (b) .............. 419 31 Siam Cement PCL, Foreign Registered Shares .............. 803 1,451 TelecomAsia Corp., PCL, Foreign Registered Shares (b) .......... 234 800 Thai Farmers Bank (b) ............ 641 1,761 Thai Rung Union Car Public Co., Ltd. ........................... 462 73 Tipco Asphalt PCL (b) ............ 66 307 United Broadcasting Corp., PCL (b) ............................ 121 -------- 5,144 -------- Turkey (0.4%): 10,347 Akcansa Cimento AS ............... 52 3,743 Aksa Akrilik Kimya Sanayii AS .... 29 4,880 Alarko Holding ................... 62 7,036 Anadolu Efes Biracilik ve Malt Sanayii AS (b) ................. 138 31,110 Arcelik AS ....................... 195 15,158 AYGAS AS ......................... 60 931 Brisa Bridgestone Sabanci Lastik SAN, Sanayii ve Ticaret AS ..... 15 7,992 Cimsa Cimento Sanayii ve Ticaret AS ............................. 30 124 Cukurova Elektrik AS (b) ......... 0 7,048 Eczacibasi Ilac Sanayii ve Ticaret AS (b) ......................... 37 10,971 Eregli Demir ve Celik Fabrikalari Sanayii ve Ticaret AS (b) ...... 109
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Turkey, continued: 3,235 Goodyear Lastikleri Sanayii ve Ticaret AS (b) ................. $ 16 4,690 Ihlas Holding (b) ................ 3 5,119 Kordsa Kord Bezi Sanayii ve Ticaret AS ..................... 15 2,711 Migros Turk Sanayii ve Ticaret AS ............................. 118 1,525 Netas-Northern Elektrik Telekomunikasyon AS ............ 23 16,415 Otosan Otomobil Sanayii ve Ticaret AS (b) ......................... 158 1,071 Raks Elektronik Sanayii ve Ticaret AS (b) ......................... 2 3,237 Tat Konserve Sanayii ve Ticaret AS ............................. 13 24,603 Tofas Turk Otomobil Fabrikas Sanayii ve Ticaret AS (b) ...... 64 21,714 Trakya Cam Sanayii ............... 47 5,667 Turk Demir Dokum Fabrikalari Sanayii ve Ticaret AS (b) ...... 8 242,700 Turkiye Garanti Bankasi Sanayii ve Ticaret AS (b) ................. 301 14 Turkiye Is Bankasi Sanayii ve Ticaret AS, Class B ............ 5 185,884 Turkiye Is Bankasi Sanayii ve Ticaret AS, Class C ............ 480 37,415 Vestel Elektronik Sanayii ve Ticaret (b) .................... 76 232,062 Yapi ve Kredi Bankasi Sanayii ve Ticaret AS (b) ................. 230 -------- 2,286 -------- United Kingdom (8.4%): 34 3I Group PLC ..................... 352 17 Abbey National PLC ............... 205 791 Amoco PLC (c) .................... 6,647 34 Anglo American PLC ............... 570 70 Arm Holdings PLC (b) ............. 156 48 BAA PLC .......................... 436 103 BAE Systems PLC .................. 523 215 Barclays PLC ..................... 1,809 20 Barratt Developments PLC ......... 128 36 Bass PLC ......................... 363 146 BG Group PLC ..................... 637 44 Boots Co., PLC ................... 433 43 Brambles Industries PLC .......... 217 14 British Aerospace PLC (b) ........ 7 57 British Airways PLC .............. 160 58 British American Tobacco PLC ..... 620 29 British Land Co., PLC ............ 246 50 British Sky Broadcasting Group PLC (b) ............................ 481
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 93 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: United Kingdom, continued: 306 British Telecommunications Group PLC (b) ........................ $ 1,175 88 Cable & Wireless PLC ............. 225 85 Cadbury Schweppes PLC ............ 634 35 Canary Wharf Group PLC (b) ....... 237 144 Centrica PLC ..................... 446 97 Chubb PLC (b) .................... 232 72 Commercial Union PLC ............. 579 78 Compass Group PLC ................ 475 189 Corus Group PLC (b) .............. 243 135 Diageo PLC ....................... 1,758 76 Dixons Group PLC ................. 221 29 Electrocomponents PLC ............ 164 54 EMI Group PLC .................... 204 200 Energis PLC (b) .................. 5 43 GKN PLC .......................... 203 217 Glaxosmithkline PLC (c) .......... 4,697 167 Granada Compass PLC .............. 284 41 Great Universal Stores PLC ....... 377 47 Hanson PLC ....................... 339 115 Hays PLC ......................... 271 140 HBOS PLC ......................... 1,514 57 Imperial Chemical Industries PLC ............................ 275 175 Invensys PLC ..................... 237 81 J Sainsbury PLC .................. 437 163 Kidde PLC (b) .................... 214 44 Kingfisher PLC ................... 210 69 Ladbroke Group PLC ............... 241 21 Land Securities PLC .............. 276 135 Lattice Group PLC ................ 351 189 Legal & General Group PLC ........ 376 194 Lloyds TSB Group PLC ............. 1,929 38 Logica PLC ....................... 116 80 Marks & Spencer Group PLC ........ 456 99 Marks & Spencer Group, Class B PLC (b) ............................ 104 57 Misys PLC ........................ 209 161 MMO2 PLC (b) ..................... 103 79 National Grid Group PLC .......... 563 50 National Power PLC (b) ........... 128 29 Nycomed Amersham PLC ............. 258 43 P & O Princess Cruises PLC (b) ... 271 36 Pearson PLC ...................... 354 45 Peninsular & Oriental Steam Navigation Co., PLC ............ 164 54 Pilkington PLC ................... 77 77 Prudential Corp., PLC ............ 705 21 Railtrack Group PLC .............. 70 38 Rank Group PLC ................... 154 52 Reed International PLC ........... 498 97 Rentokil Initial PLC ............. 395
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: United Kingdom, continued: 65 Reuters Group PLC ................ $ 342 32 Rexam PLC ........................ 206 43 Rio Tinto PLC .................... 779 29 Rolls-Royce PLC .................. 72 34 Royal Bank of Scotland Coupons (b) ............................ 42 97 Royal Bank of Scotland Group PLC ............................ 2,761 15 Schroders PLC .................... 135 56 Scottish Power PLC ............... 299 33 Smiths Industries PLC ............ 429 30 Taylor Woodrow PLC ............... 83 294 Tesco PLC ........................ 1,069 83 The Sage Group PLC ............... 215 276 Thus Group PLC (b) ............... 51 100 Unilever PLC ..................... 908 2,526 Vodaphone Group PLC .............. 3,465 47 Woolworths Group PLC ............. 29 49 WPP Group PLC .................... 414 68 Zeneca PLC ....................... 2,818 -------- 51,561 -------- Total Common Stocks 565,162 -------- Corporate Bonds (0.0%): Spain (0.0%): $ 65 Banco Santander, 2.00%, 10/1/03 .. 62 -------- United Kingdom (0.0%): 19 BG Transco Holdings PLC, 7.06%, 12/14/09* ...................... 29 19 BG Transco Holdings PLC, 4.19%, 12/14/22* ...................... 35 19 BG Transco Holdings PLC, 7.00%, 12/16/24 ....................... 31 -------- 95 -------- Total Corporate Bonds 157 -------- iShares (2.0%): Germany (0.2%): 68 MSCI Germany Index Fund .......... 989 -------- Hong Kong (0.1%): 70 MSCI Hong Kong Index Fund ........ 622 -------- Japan (0.5%): 380 MSCI Japan Index Fund ............ 3,203 -------- Korea (0.5%): 138 MSCI South Korea ................. 3,021 -------- Singapore (0.0%): 15 MSCI Singapore Free Index Fund ... 79 -------- Taiwan (0.7%): 430 MSCI Taiwan Index Fund ........... 4,456 -------- Total iShares 12,370 --------
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 94 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Preferred Stocks (1.0%): Australia (0.1%): 192 News Corp., Ltd. ................. $ 881 -------- Brazil (0.7%): 1,035 Ambev Cia Bebid .................. 161 100 Aracruz Celulose SA .............. 200 69,398 Banco Bradesco SA ................ 274 2,485 Banco do Estado De SA ............ 83 8,230 Banco Itau SA .................... 459 55,695 Bradespar SA (b) ................. 11 20,012 Centrais Electricas Brasilieras SA ............................. 189 6,114 Companhia Brasileira de Distribuicao Grupo Pao de Acucar ......................... 108 3,835 Companhia Energetica de Minas Gerais ......................... 43 126 Companhia Paulista de Forca e Luz ............................ 4 29 Companhia Vale do Rio Doce, Series A .............................. 733 140 CPFL Geracao de Energia .......... 0 10,020 Embratel Participacoes SA ........ 5 8 Marcopolo SA ..................... 10 59 Petroleo Brasileiro SA ........... 1,025 10 Petroleo Brasileiro SA ADR ....... 167 9,577 Tele Centro Sul Participacoes .... 53 13,410 Tele Norte Leste Participacoes ... 134 27,580 Telesp Celular Participacoes ..... 43 3,218 Uniao de Bancos Brasileir ........ 45 5,000 Votorantim Celulose e Papel SA ... 184 -------- 3,931 -------- Germany (0.2%): 2 Man AG Vorzugsaktien ............. 36 11 RWE AG ........................... 340 16 Volkswagen AG .................... 521 -------- 897 --------
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Preferred Stocks, continued: Italy (0.0%): 24 Fiat SpA ......................... $ 210 -------- Total Preferred Stocks 5,919 -------- Rights (0.0%): Brazil (0.0%): 11 Vale Do Rio Doce Bond ............ 0 -------- Total Rights 0 -------- Warrants (0.0%): Israel (0.0%): 0 Israel Corp., Ltd. ............... 0 -------- Thailand (0.0%): 71 Nation Multimedia Group PLC ...... 3 47 Nation Multimedia Group PLC ...... 1 -------- Total Warrants 4 -------- U.S. Treasury Obligations (0.3%): U.S. Treasury Bills (0.3%): $ 1,900 11/29/02 (c) ..................... 1,887 -------- Total U.S. Treasury Obligations 1,887 -------- Investment Companies (2.0%): 12,563 One Group Prime Money Market Fund, Class I ........................ 12,563 -------- Total Investment Companies 12,563 -------- Total (Cost $599,989)(a) $598,062 ========
------------ Percentages indicated are based on net assets of $615,696. (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 118,686 Unrealized depreciation...................... (120,613) --------- Net unrealized appreciation (depreciation)... $ (1,927) =========
Aggregate cost for federal income tax purposes differs from cost for financial reporting purposes by less than 2% of net assets and is therefore considered substantially the same. (b) Non-income producing securities. (c) Segregated as collateral for futures contracts. Amounts shown as 0 are either 0, or rounded to less than 1000. * The interest rate for these variable rate securities, which will change periodically, is based upon prime rates or an index of market rates. The rate reflected on the Schedule of Portfolio Investments is the rate in effect at June 30, 2002.
ADR American Depository Receipt GDR Global Depository Receipt
Continued One Group International Equity Index Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 95 Report The following represents the allocations by industry for common stocks, preferred stocks, and corporate bonds based on net assets:
Industry Percentage -------- ---------- Commercial Services............................. 1.8% Communications.................................. 7.2% Consumer Durables............................... 5.5% Consumer Non-Durables........................... 7.1% Consumer Services............................... 2.7% Distribution Services........................... 1.0% Electronic Technology........................... 7.7% Energy.......................................... 8.2% Financial Services.............................. 23.8% Health Care..................................... 0.1% Health Technology............................... 8.6% Industrial Services............................. 1.1% Miscellaneous................................... 0.1% Non-Energy Minerals............................. 3.7% Process Industries.............................. 4.2% Producer Manufacturing.......................... 6.0% Retail.......................................... 4.0% Technology Services............................. 1.1% Transportation.................................. 2.1% Utilities....................................... 4.0%
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 96 Report One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments (Amounts in thousands)
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks (85.7%): Argentina (0.2%): 38 Banco Frances Rio SA ............. $ 18 7 Grupo Financiero Galicia ARS (b) ............................ 4 55 Impsat Fiber Networks, Inc. (b) ............................ 1 835 PC Holdings SA ................... 483 56 Siderar SA, Class A (b) .......... 32 489 Siderca SA ....................... 821 19 YPF Sociedad Anonima ............. 223 -------- 1,582 -------- Australia (1.5%): 20 Amcor Ltd. ....................... 93 152 Amp Ltd. ......................... 1,331 62 Australian Gas Light Co. ......... 341 157 Brambles Industries Ltd. ......... 833 283 Broken Hill Proprietary Co., Ltd. ........................... 1,638 28 Coles Myer Ltd. .................. 104 25 Commonwealth Bank of Australia ... 471 300 Computershare Ltd. ............... 371 160 CSR Ltd. ......................... 575 86 Foster's Brewing Group Ltd. ...... 227 66 National Australia Bank Ltd. ..... 1,308 20 News Corp., Ltd. ................. 109 65 Onesteel Ltd. .................... 48 1 Orica Ltd. ....................... 6 0 Paperlinx Ltd. ................... 0 60 Publishing and Broadcasting ...... 305 133 QBE Insurance Group Ltd. ......... 494 70 Rio Tinto Ltd. ................... 1,316 56 Santos Ltd. ...................... 202 184 Sons of Gwalia ................... 627 200 TAB Ltd. ......................... 349 50 Telstra Corp., Ltd. .............. 131 93 Westpac Banking Corp., Ltd. ...... 847 82 WMC Ltd. ......................... 417 47 Woolworth Ltd. ................... 347 -------- 12,490 -------- Austria (0.1%): 13 Flughafen Wien AG ................ 447 -------- Belgium (0.8%): 9 Bekaert SA ....................... 440 17 Bel Suez Lyonnaise Des Eaux SA ... 435 4 Electrabel SA .................... 940 21 Fortis ........................... 459 16 Groupe Bruxelles Lambert SA ...... 853 20 Interbrew Co. .................... 574 17 Kredietbank NV ................... 675 29 Solvay SA ........................ 2,062 17 Suez Lyonnaise Des Eaux Strip .... 0
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Belgium, continued: 26 Total Fina SA, Strip ............. $ 0 8 Union Miniere Group SA ........... 333 -------- 6,771 -------- Brazil (1.3%): 95 Aracruz Celulose ADR ............. 1,899 3,000 Celular CRT Participation, Preferred A Shares ............. 431 16 Cemig Ca Energ ADR ............... 176 97 Centrais Eletricas Brasileiras ADR ............................ 458 11 Compania Vale do Rio Doce ADR .... 285 240 Embratel Participacoes SA ADR .... 96 8 Klbain SA ADR .................... 27 3 Net Servicos de Com (b) .......... 17 10 Pao De Acucar GDR ................ 178 36 Petroleo Brasileiro ADR .......... 626 6 Sider Nacional ADR ............... 95 296 Tele Centro Oeste Celular Participacoes SA ............... 1,311 0 Tele Norte Leste Participacoes SA ADR (b) ........................ 3 37,849 Telecomunicacoes Brasileiras SA (b) ............................ 0 25 Telecomunicacoes Brasileiras SA ADR ............................ 567 44 Telefonica SA ADR (b) ............ 1,087 167 Telekom Austria AG (b) ........... 1,340 58,000 Telemar Norte Leste SA ........... 1,017 8 Tractebel Energia SA ADR ......... 43 4 Unibanco Holdings GDR ............ 66 59 Votorantim Celulose e Papel SA ADR ............................ 1,115 -------- 10,837 -------- Canada (0.5%): 4 Alcan Aluminum Ltd. .............. 159 70 Domtar, Inc. ..................... 817 5 Magna International, Inc., Class A .............................. 337 30 Sun Life Financial Services ...... 649 20 Thomson Corp. .................... 631 60 Toronto-Dominion Bank ............ 1,417 -------- 4,010 -------- Chile (0.1%): 14 Banco Santander ADR .............. 182 27 Enersis SA ADR (b) ............... 158 10 Lan Chile ADR .................... 51 50 Telecomunicaciones de Chile SA ADR ............................ 612 -------- 1,003 -------- China (1.1%): 5,000 Angang New Steel Company Ltd. .... 756 3,000 Beijing Capital International Airport ........................ 719
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 97 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: China, continued: 3,129 China Everbright Ltd. ............ $ 1,726 66 China Petroleum & Chemical Corp. .......................... 1,158 2,900 China Steel Corp. ................ 1,494 176 China Unicom Ltd. (b) ............ 135 108 China Unicom Ltd. ADR (b) ........ 828 100 China.Com Corp. (b) .............. 272 6,000 Guangshen Railway Co., Ltd. ...... 1,138 19 Petrochina Co., Ltd. ADR ......... 406 700 Shum Yip Investment Ltd. ......... 242 1,588 Xinao Gas Holdings Ltd. (b) ...... 580 -------- 9,454 -------- Denmark (1.5%): 3 Carlsberg A/S, Class B ........... 152 0 D/S 1912, Class B ................ 3,095 0 D/S Svendborg A/S, Class B ....... 984 11 Danisco A/S ...................... 397 10 Decode Genetics, Inc. (b) ........ 47 90 Falck A/S ........................ 3,111 20 H. Lunbeck A/S ................... 529 5 Novo Nordisk A/S ................. 154 83 Tele Danmark A/S, Class B ........ 2,289 50 Vestas Wind Systems A/S .......... 1,356 -------- 12,114 -------- Finland (3.8%): 260 Aldata Solution Oyj (b) .......... 437 348 Hpy Holding Oyj, Class A (b) ..... 2,494 33 Huhtamaki ........................ 1,476 330 Jot Automation Group Oyj (b) ..... 111 62 Kesko Oyj ........................ 704 14 Metra AB, Class B ................ 236 670 Nokia Corp., ADR ................. 9,702 541 Nokia Oyj, Class A ............... 7,915 20 Nokian Renkaat Oyj ............... 672 16 Pohjola Group, Class D PLC ....... 287 197 Rautaruukki Oyj .................. 922 276 Sampo Insurance Co. .............. 2,153 15 Stockmann Oyj, Class A ........... 193 82 Stonesoft Oyj (b) ................ 62 140 Stora Enso Oyj, Class R .......... 1,962 108 Tecnomen Oyj (b) ................. 94 65 UPM-Kymmene Corp. ................ 2,539 -------- 31,959 -------- France (4.5%): 31 Accor SA ......................... 1,256 17 Altran Technologies SA ........... 495 102 AXA .............................. 1,866 50 AXA ADR .......................... 909 53 Banque Nationale de Paris ........ 2,947 2 Beghin-Say (b) ................... 63
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: France, continued: 4 BIC .............................. $ 168 13 Canal Plus ....................... 48 20 Carrefour SA ..................... 1,058 2 Cerestar (b) ..................... 50 27 Compagnie de Saint-Gobain ........ 1,218 10 Dassault Systems SA .............. 457 16 Dexia ............................ 243 16 Dexia-Strip (b) .................. 0 53 France Telecom SA ................ 498 6 Groupe Danone .................... 801 1 Imetal SA ........................ 141 9 L'Air Liquide, Registered Shares (c) ............................ 1,319 23 L'Oreal SA ....................... 1,816 13 Lafarge SA ....................... 1,247 10 Lagardere SCA .................... 433 14 LVMH (Louis Vuitton Moet Hennessy) ...................... 711 8 Michelin, Class B, Registered Shares ......................... 328 5 Pechiney SA, Class A ............. 228 4 Pernod-Ricard .................... 379 6 Pinault Printemps Redoute SA ..... 741 2 Provimi (b) ...................... 33 34 Psa Peugeot Citroen .............. 1,782 38 Rhone-Poulenc SA ................. 2,688 70 Sanofi Synthelabo SA (c) ......... 4,245 7 Schneider SA ..................... 367 26 Societe Generale, Class A ........ 1,732 15 STMicroelectronics NV ............ 374 90 Suez Lyonnaise Des Eaux SA ....... 2,387 7 Thomson CSF ...................... 296 20 Total SA, Class B (c) ............ 3,184 61 Vivendi Universal SA ............. 1,311 -------- 37,819 -------- Germany (3.2%): 10 Adidas AG ........................ 820 10 Allianz AG (c) ................... 2,090 54 BASF AG .......................... 2,483 27 Bayer AG ......................... 849 15 Bayerische Motoren Werke AG ...... 618 19 Bayerische Vereinsbank AG ........ 625 3 Beiersdorf AG, Series ABC ........ 386 3 Biodata Information Tech (b) ..... 0 18 Daimler-Chrysler AG .............. 878 33 Deutsche Bank AG, Registered Shares ......................... 2,316 70 Deutsche Post AG ................. 888 123 Deutsche Telekom AG .............. 1,152 11 Hochtief AG ...................... 213 20 Infineon Technologies AG (b) ..... 310 6 Linde AG ......................... 283 34 Lufthansa AG ..................... 478
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 98 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Germany, continued: 28 Metro AG ......................... $ 848 11 Muenchener Rueckversicherungs Gesellschaft AG, Registered Shares ......................... 2,692 26 Preussag AG ...................... 638 34 RWE AG ........................... 1,360 5 SAP AG ........................... 449 30 SAP AG ADR ....................... 724 17 Schering AG ...................... 1,059 15 Siemens AG ....................... 899 10 Siemens AG ADR ................... 594 30 Suess Microtec (b) ............... 601 42 Thyssen Krupp AG ................. 638 28 VEBA AG .......................... 1,657 10 Volkswagen AG .................... 470 -------- 27,018 -------- Greece (1.3%): 31 Aktor ............................ 166 79 Alpha Credit Bank SA ............. 1,132 40 Bank of Piraeus .................. 288 15 Commercial Bank of Greece SA ..... 323 50 Delta Singular SA ................ 167 10 Eurobank ......................... 140 15 Folli-Follie Abee (b) ............ 285 88 Hellenic Bottling Co., SA ........ 1,483 35 Hellenic Telecommunication Organization ................... 553 80 Hyatt Regency Hotels and Tourism SA ............................. 512 19 M.J. Maillis SA .................. 110 95 National Bank of Greece SA ....... 2,022 210 Panafon Hellenic Telecom SA ...... 1,062 145 Public Power Corp., Registered Shares GDR (b) ................. 1,890 20 Titan Cement Co. ................. 783 -------- 10,916 -------- Hong Kong (3.7%): 350 Asat Holdings Ltd. ADR (b) ....... 420 4,988 Beijing Datang Power Generation Ltd. ........................... 2,222 600 China Mobile Ltd. (b) ............ 1,776 104 China Mobile Ltd. ADR (b) ........ 1,522 116 CLP Holdings Ltd. ................ 461 1,000 Convenience Retail Asia Ltd. (b) ............................ 372 318 Denway Motors Ltd. ............... 90 4,100 Global Green Tech Group Ltd. ..... 1,030 61 Hang Seng Bank Ltd. .............. 651 450 Henderson Land Development ....... 1,869 197 Hong Kong & China Gas Co., Ltd. ........................... 262 22 Hong Kong Electric Holdings Ltd. ........................... 81 215 HSBC Holdings PLC (c) ............ 2,471 2 HSBC Holdings PLC ................ 19
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Hong Kong, continued: 1,500 Huaneng Power International, Inc. ........................... $ 1,231 192 Hutchison Whampoa Ltd. ........... 1,435 1,077 Hysan Development Co., Ltd. ...... 1,042 800 I-Cable Communications Ltd. ...... 487 506 Johnson Electric Holdings ........ 600 260 Kerry Properties Ltd. ............ 274 236 Li & Fung Ltd. ................... 318 516 MTR Corp. ........................ 669 0 New World China Land Ltd. (b) .... 0 89 New World Development Co., Ltd. ........................... 71 2,220 Ngai Lik Industrial Holding Ltd. ........................... 797 1,722 Pacific Century Cyberworks Ltd. (b) ............................ 406 1,500 QPL International Holdings Ltd. (b) ............................ 553 90 Serono SA ADR .................... 1,467 200 Shangri-La Asia Ltd. ............. 167 300 SmarTone Telecommunications Holdings Ltd. (b) .............. 338 131 Sun Hung Kai Properties Ltd. ..... 993 715 Sunevision Holdings Ltd. (b) ..... 134 400 TCL International Holdings Ltd ... 113 1,150 Tracker Fund of Hong Kong ........ 1,578 393 Wharf Holdings ................... 927 5,000 Yanzhou Coal Mining Co. .......... 1,843 2,500 Yizheng Chemical Fibre Co. ....... 388 214 Yue Yuen Industrial Holdings ..... 642 2,000 Zhejiang Expressway Co., Ltd. .... 679 -------- 30,398 -------- India (0.1%): 65 Hexaware GDR (b) ................. 37 10 Infosys Technologies Ltd. ........ 511 25 Larsen & Toubro Ltd. GDR ......... 183 125 Mahindra & Mahindra Ltd. GDR (b) ............................ 275 10 Reliance Industries Ltd. GDR (b) ............................ 123 -------- 1,129 -------- Ireland (1.8%): 40 Allied Irish Banks PLC ........... 532 392 Bank of Ireland .................. 4,886 224 CRH PLC (c) ...................... 3,748 561 Independent Newspapers PLC ....... 1,108 163 Kerry Group, Class A PLC ......... 2,408 1 Riverdeep Group PLC ADR (b) ...... 16 70 Ryanair Holdings PLC (b) ......... 428 521 Smurfit (Jefferson) Group ........ 1,595 -------- 14,721 -------- Israel (0.0%): 35 Partner Communications Co., Ltd. ADR (b) ........................ 147 --------
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 99 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Italy (1.5%): 75 Assicurazioni Generali SpA ....... $ 1,778 42 Bancario San Paolo di Torino ..... 426 210 Banco Ambrosiano Veneto SpA ...... 641 88 Eni Spa .......................... 1,399 137 Mediaset SpA ..................... 1,061 160 Pirelli SpA ...................... 171 94 Snam Rete Gas SpA ................ 278 320 Telecom Italia Mobile SpA ........ 2,506 630 Telecom Italia Mobile SpA di Risp ........................... 2,581 282 Unicredito Italiano SpA .......... 1,276 -------- 12,117 -------- Japan (17.8%): 16 Advantest Corp. .................. 996 6 Aiful Corp. ...................... 407 74 Ajinomoto Co., Inc. .............. 794 140 Asahi Chemical Industry Co., Ltd. ........................... 466 25 Avex, Inc. ....................... 585 18 Benesse Corp. .................... 329 30 Canon, Inc. ...................... 1,134 20 Cawachi Ltd. ..................... 1,769 127 Chugai Pharmaceutical Co., Ltd. ........................... 1,519 74 Dai Nippon Printing Co., Ltd. .... 982 87 Dai-Ichi Pharmaceuticals ......... 1,590 1 Daido Life Insurance Co. (b) ..... 2,545 82 Dainippon Ink & Chemicals, Inc. ........................... 176 100 Dainippon Pharmaceutical Co., Ltd. ........................... 1,073 165 Daito Trust Construction Co., Ltd. ........................... 3,090 1,166 Daiwa Bank Holdings, Inc. (b) .... 895 80 Denso Corp. ...................... 1,250 2 East Japan Railway Co. ........... 8,063 50 Family Mart Co., Ltd. ............ 1,210 4 Fast Retailing Co., Ltd. ......... 87 300 Fuji Electric Co., Ltd. .......... 813 380 Fuji Heavy Industries Ltd. ....... 1,813 44 Fuji Photo Film Co., Ltd. ........ 1,421 173 Hankyu Corp. ..................... 570 60 Hitachi Chemical Co., Ltd. ....... 671 25 Hogy Medical Co., Ltd ............ 1,187 20 Honda Motor Co., Ltd. ............ 811 35 ITO-Yokado Co., Ltd. ............. 1,752 167 Itochu Corp. ..................... 585 16 Jafco ............................ 1,415 2 Japan Telecom Co., Ltd. .......... 4,521 30 Kao Corp. ........................ 691 14 Kceo, Inc. ....................... 159 50 Keisei Electric Railway Co. ...... 155 25 Kobayashi Pharmaceutical Co., Ltd. ........................... 1,012 50 Kokusai Electric Co., Ltd. ....... 227 67 Konami Co., Ltd. ................. 1,406 36 Kose Corp. ....................... 1,105
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Japan, continued: 136 Kubota Corp. ..................... $ 414 150 Kuraray Co., Ltd. ................ 982 11 Kyocera Corp. .................... 803 400 Mazda Motor Corp. ................ 1,058 78 Mitsubishi Corp. ................. 564 65 Mitsubishi Electric Corp. ........ 292 127 Mitsubishi Heavy Industries Ltd. ........................... 385 1 Mitsubishi Tokyo Financial Group, Inc. (c) ....................... 3,512 400 Mitsui Chemicals, Inc. ........... 1,999 195 Mitsui Fudosan Co., Ltd. ......... 1,725 70 Mitsumi Electric Co., Ltd. ....... 1,101 1 Mizuho Holdings, Inc. ............ 1,897 47 Murata Manufacturing Co., Ltd. (c) ............................ 2,994 50 NEC Corp. ........................ 348 10 NEC Soft Ltd. .................... 1,076 100 Nikon Corp. ...................... 1,107 10 Nintendo Co., Ltd. ............... 1,473 500 Nippon Steel Co. ................. 780 20 Nippon System Development Co., Ltd. ........................... 754 7 Nippon Telegraph and Telephone Corp. (c) ...................... 142 0 Nippon Telegraph and Telephone Corp. .......................... 1,571 300 Nippon Yusen Kabushiki Kaisha .... 1,034 60 Nitto Denko Corp. ................ 1,967 337 Nomura Securities Co., Ltd. ...... 4,948 1 NTT Mobile Communication ......... 1,624 70 Omron Corp. ...................... 1,013 12 Oriental Land Co., Ltd. .......... 858 10 Orix Corp. ....................... 807 120 Pioneer Electronic Corp. ......... 2,148 30 Promise Co., Ltd. ................ 1,512 75 Ricoh ............................ 1,298 7 Rohm Co., Ltd. ................... 1,045 143 Sankyo Co., Ltd. ................. 1,945 61 Sankyo Co., Ltd. ................. 1,524 40 Sega Enterprises Ltd. (b) ........ 961 150 Seiyu Ltd. (b) ................... 582 34 Seven-Eleven Japan Ltd. (c) ...... 1,339 153 Sharp Corp. ...................... 1,943 99 Shin-Etsu Chemical Co. ........... 4,254 50 Shinko Electric Industries Co., Ltd. ........................... 1,137 2 SKY Perfect Communications, Inc. (b) ............................ 1,969 77 Softbank Corp. ................... 1,066 53 Sony Corp. ....................... 2,799 75 Sony Corp. ADR ................... 3,975 130 Sumitomo Bank Ltd. ............... 634 74 Sumitomo Corp. ................... 448 462 Sumitomo Metal Industries Ltd. (b) ............................ 204
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 100 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Japan, continued: 150 Sumitomo Realty & Development Co. Ltd. ........................... $ 910 400 Sumitomo Trust & Banking ......... 1,922 210 Taiyo Yuden Co., Ltd. ............ 3,434 90 Takeda Chemical Industries Ltd. (c) ............................ 3,950 150 Tanabe Seiyaku ................... 1,314 50 THK .............................. 962 423 Tokyu Corp. ...................... 1,638 200 Tonengeneral Sekiyu KK ........... 1,418 200 Toshiba Corp. .................... 814 40 Toto Ltd. ........................ 187 30 Toyo Seikan Kaisha Ltd. .......... 394 75 Toyoda Automatic Loom Works ...... 1,218 137 Toyota Motor Corp. ............... 3,635 50 Trans Cosmos, Inc. ............... 1,133 2 UFJ Holdings, Inc. ............... 4,839 8 Yamada Denki Co. ................. 701 70 Yamato Transport Co., Ltd. ....... 1,276 -------- 147,030 -------- Korea (3.0%): 55 CJ39 Shopping .................... 3,733 800 Good Morning Securities (b) ...... 3,830 40 Humax Co., Ltd. .................. 873 73 Hyundai Motor Co., Ltd. .......... 2,194 40 Kookmin Bank ADR ................. 1,966 327 Korea Electric Power Corp. ....... 5,975 80 Kyeryong Construction Industrial Co., Ltd. ...................... 461 40 LG Electronics, Inc. (b) ......... 1,596 6 LG Investment & Securities ....... 60 2 Samsung Electronics Co. .......... 547 110 Shinhan Financial Group Co., Ltd. ........................... 1,554 12 Shinsegae Department Store Co. ... 2,035 -------- 24,824 -------- Luxembourg (0.2%): 127 Arcelor (b) ...................... 1,802 -------- Malaysia (0.2%): 1,159 Maxis Communications Berhad (b) ............................ 1,479 -------- Mexico (1.9%): 560 Alfa SA de CV, Class A ........... 945 1,381 America Movil SA de CV ........... 925 74 Cemex SA de CV, Series CPO ....... 389 27 Cemex SA de OV ADR (b) ........... 8 203 Cifra SA de CV, Series C (b) ..... 469 75 Cifra SA de CV, Series V ......... 203
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Mexico, continued: 20 Coca-Cola Femsa SA ............... $ 480 646 Desc SA de CV, Series B .......... 360 154 Empresas La Moderna SA de CV (b) ............................ 111 18 Fomento Economico Mexicano SA de CV ADR ......................... 722 229 Grupo Carso SA de CV, Series A-1 (b) ............................ 689 399 Grupo Elektra SA de CV ........... 338 5,048 Grupo Financiero Bancomer SA de CV, Class O (b) ................ 4,128 203 Grupo Mexico SA de CV, Class B ... 292 603 Grupo Modelo SA, Series C ........ 1,419 10 Grupo Televisa SA GDR (b) ........ 374 692 Grupo Televisa SA, Series CPO (b) ............................ 1,308 104 Industrias Penoles SA, Series CP ............................. 209 485 Kimberly-Clark de Mexico SA de CV, Class A ........................ 1,293 10 Telefonos de Mexico ADR .......... 321 539 Telefonos de Mexico SA, Series L .............................. 856 50 TV Azteca SA de CV ............... 341 -------- 16,180 -------- Netherlands (3.5%): 197 ABN AMRO Holding NV .............. 3,584 50 Aegon NV ......................... 1,044 55 Akzo Nobel NV .................... 2,393 68 ASM Lithography Holding NV (b) ... 1,077 80 ASM Lithography Holdings NV, Registered Shares ADR (b) ...... 1,210 40 Completel Europe NV (b) .......... 8 37 Elsevier NV ...................... 509 36 Fortis NPV ....................... 767 495 Getronics NV ..................... 944 9 Heineken NV ...................... 377 16 IHC Caland NV .................... 942 190 ING Groep NV (c) ................. 4,871 23 Koninklijke Ahold NV ............. 488 93 Koninklijke KPN NV (b) ........... 434 17 Oce NV ........................... 195 123 Philips Electronics NV ........... 3,431 70 Royal Dutch Petroleum Co. ........ 3,919 30 TNT Post Groep NV ................ 685 28 Unilever NV ...................... 1,813 15 Wolters Kluwer CVA ............... 291 9 World Online International NV (b) ............................ 0 -------- 28,982 --------
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 101 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: New Zealand (0.5%): 200 Carter Holt Harvey Ltd. .......... $ 192 499 Fletcher Building Ltd. ........... 666 250 Lion Nathan Ltd. ................. 678 880 Telecom Corp. of New Zealand Ltd. ........................... 2,107 74 Tower Ltd. ....................... 165 420 Tranz Rail Holdings Ltd. (b) ..... 641 -------- 4,449 -------- Norway (3.3%): 52 Bergesen Dy ASA, Class A ......... 1,113 314 Den Norske Bank ASA .............. 1,711 22 Frontline Ltd. (b) ............... 209 799 Golar LNG Ltd. (b) ............... 4,897 30 Hafslund ASA, Class A ............ 156 2,411 Kvaerner ASA, Class A (b) ........ 2,185 18 Leif Hoegh & Co., ASA ............ 236 99 Norsk Hydro ASA .................. 4,707 110 Norske Skogsindustrier ORD ASA ... 2,058 220 Nycomed Amersham PLC, Class B .... 1,951 69 Orkla ASA, Series A .............. 1,337 40 Schibsted ASA .................... 480 55 Smedvig ASA, Class A ............. 351 60 Sparebanken Nor-Cap CTF .......... 2,223 144 Statoil ASA ...................... 1,286 80 Tandberg ASA (b) ................. 943 175 Telenor ASA ...................... 620 172 Tomra Systems ASA ................ 1,352 -------- 27,815 -------- Portugal (0.1%): 29 Portugal Telecom SA .............. 207 50 Telecel Communicacoes Pessoai (b) ............................ 350 -------- 557 -------- Puerto Rico (0.2%): 20 Check Point Software Technologies Ltd. (b) ....................... 271 40 Shire Pharmaceuticals Group PLC (b) ............................ 1,033 -------- 1,304 -------- Russia (0.1%): 35 Mobile Telesystems ADR ........... 1,060 -------- Singapore (1.5%): 398 Capitaland Ltd. .................. 344 20 Chartered Semiconductor ADR (b) ............................ 400 100 Chartered Semiconductor Manufacturing Ltd. (b) ......... 204 221 City Developments Ltd. ........... 712 83 Creative Technology Ltd. ......... 738 575 Datacraft Asia Ltd. .............. 690 100 DBS Group Holdings Ltd. .......... 702 95 Del Monte Pacific Ltd. ........... 25
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Singapore, continued: 450 Flextech Holdings Ltd. (b) ....... $ 76 9 Fraser & Neave Ltd. .............. 38 181 Keppel Corp. ..................... 421 250 NatSteel Broadway Ltd. ........... 453 100 Natsteel Ltd. .................... 97 152 Oversea Chinese Banking Corp., Ltd. ........................... 1,008 300 Sembcorp Logistics Ltd. .......... 375 35 Silverline Techologies Ltd. ADR ............................ 52 94 Singapore Airlines Ltd. .......... 686 45 Singapore Press Holdings Ltd. .... 507 1,497 Singapore Telecommunications Ltd. ........................... 1,161 228 United Overseas Bank Ltd. ........ 1,640 250 Venture Manufacturing Ltd. ....... 1,996 -------- 12,325 -------- South Korea (3.0%): 40 Daishin Securities Co. ........... 622 220 Hana Bank ........................ 3,145 119 Kookmin Bank ..................... 5,757 630 KorAm Bank (b) ................... 5,630 50 Korea Tobacco and Ginseng 144A GDR ............................ 324 10 Korean Telecom Corp. ............. 402 15 LG Home Shopping, Inc. ........... 1,646 2 Lotte Chilsung Beverage Co. ...... 1,380 32 Pohang Iron & Steel Co., Ltd. .... 3,551 18 Samsung Securities Co., Ltd. (b) ............................ 515 288 Sewon Telecom Ltd. (b) ........... 459 7 SK Telecom Co., Ltd. ............. 1,636 -------- 25,067 -------- Spain (2.4%): 13 Acerinox SA, Registered Shares ... 551 32 Autopistas Cesa .................. 355 320 Banco Bilbao Vizcaya Argentina SA (c) ............................ 3,619 385 Banco Santander Central Hispano Americano SA (c) ............... 3,058 27 Corporacion Mapfre SA ............ 213 5 Enagas (b) ....................... 32 52 Endesa SA ........................ 750 31 Fomento de Construcciones y Contratas SA ................... 764 20 Gas Natural SDG SA ............... 392 100 Grupo Dragados SA ................ 1,783 20 Grupo Prisa SA (b) ............... 168 99 Iberdrola SA ..................... 1,436 137 Repsol SA ........................ 1,612 376 Telefonica SA (b)(c) ............. 3,156 7 Telefonica SA (b) ................ 61 10 Terra Networks SA (b) ............ 57
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 102 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Spain, continued: 64 Union Electric Fenosa SA ......... $ 1,180 29 Vallehermoso SA .................. 278 64 Zardoya Otis SA .................. 847 -------- 20,312 -------- Sweden (5.1%): 665 ABB Ltd. (b) ..................... 5,896 94 Alfa Laval AB (b) ................ 936 75 AstraZeneca Group PLC ............ 3,117 40 Atlas Copco AB, Series A ......... 958 45 Autoliv, Inc. .................... 1,097 33 Axfood AB ........................ 546 200 Billerud AB ...................... 1,937 50 Bure Invesment Aktiebolaget ...... 119 25 Capio AB (b) ..................... 212 120 Electrolux AB, Series B .......... 2,422 275 Enea Data AB (b) ................. 62 115 Eniro AB ......................... 882 20 Getinge Industrier AB, Class B ... 396 10 Haldex AB ........................ 121 117 Hennes & Mauritz AB, Class B ..... 2,342 225 Intrum Justitia AB (b) ........... 1,298 228 LGP Telecom Holding AB (b) ....... 719 1,065 LM Ericsson AB, Series B (c) ..... 1,611 200 Nordic Baltic Holding AB ......... 1,088 404 Nordic Baltic Holding AB ......... 2,174 79 Novestra AB (b) .................. 67 10 Observer AB ...................... 58 12 PerBio Science AB (b) ............ 220 30 Poolia AB ........................ 101 33 Pyrosequencing AB (b) ............ 63 136 Sek Skanska AB, Class B .......... 940 400 Sek Telia AB ..................... 1,114 300 Skandia Forsakrings AB ........... 1,364 200 SSAB, Series A ................... 2,601 178 Svenska Handelsbanken, Class A ... 2,721 255 Telelogic AB (b) ................. 183 200 Volvo AB, Class B ................ 4,146 462 WM-Data AB, Class B .............. 875 -------- 42,386 -------- Switzerland (4.2%): 29 Compagnie Financiere Richemont UTS AG ............................. 660 90 Converium Holding AG (b) ......... 4,650 39 Credit Suisse Group (b) .......... 1,235 2 Givaudan ......................... 1,001 3 Holcim Ltd., Class B ............. 640 18 Nestle SA (c) .................... 4,136 118 Novartis AG (c) .................. 5,173 53 Roche Holding AG (c) ............. 4,029
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: Switzerland, continued: 29 Swiss Reinsurance Corp., Registered Shares .............. $ 2,796 7 Swisscom AG, Registered Shares ... 1,978 11 Syngenta AG ...................... 683 7 The Swatch Group AG, Registered Shares ......................... 137 139 UBS AG, Registered Shares (b) .... 6,983 6 Zurich Financial Services AG ..... 1,239 -------- 35,340 -------- Taiwan (2.8%): 100 Advanced Semiconductor Engineering, Inc. ADR (b) ...... 325 65 Ase Test Ltd. (b) ................ 631 369 Asustek Computer, Inc. ........... 1,110 51 Asustek Computer, Inc. GDR ....... 150 1,000 Benq Corp. ....................... 1,616 2,100 Chinatrust Financial Holding Co., Ltd. (b) ....................... 1,854 1,200 CTCI Corp. ....................... 463 575 Delta Electronics, Inc. .......... 776 2,500 Eva Airways Corp. (b) ............ 1,018 300 Fomosa Chemicals and Fibre Corp. .......................... 273 23 Gigamedia Ltd. (b) ............... 20 700 Holiday Entertainment Co., Ltd. ........................... 549 37 Hon Hai Precision GDR ............ 303 540 Kye Systems Corp. (b) ............ 527 1,000 Nan Ya Plastic Corp. ............. 937 38 Powerchip Semiconductor GDR ...... 221 731 Promos Technologies, Inc., Registered Shares GDR (b) ...... 3,362 372 Ritek Corp. GDR .................. 621 96 Systex Corp. ADR (b) ............. 184 1,799 TA YA Electric Wire and Cable Co., Ltd. (b) ....................... 635 4,000 Taishin Financial Holding Co. (b) ............................ 2,155 1,500 Taiwan Cellular .................. 1,917 140 Taiwan Semiconductor (b) ......... 285 99 Taiwan Semiconductor Manufacturing Co., Ltd. ADR (b) .............. 1,287 286 United Microelectronics Corp. (b) ............................ 343 186 United Microelectronics Corp. ADR (b) ............................ 1,368 -------- 22,930 -------- United Kingdom (8.7%): 76 Abbey National PLC ............... 889 475 Amoco PLC (c) .................... 3,990 30 AWG PLC .......................... 252 82 BAE Systems PLC .................. 416 327 Barclays PLC ..................... 2,747 97 Bass PLC ......................... 988
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 103 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: United Kingdom, continued: 253 BG Group PLC ..................... $ 1,101 40 BOC Group PLC .................... 628 5 Bookham Technology PLC ADR (b) ... 5 62 Boots Co., PLC ................... 617 84 British Airways PLC .............. 237 384 British Sky Broadcasting Group PLC (b) ............................ 3,683 349 British Telecommunications Group PLC (b) ........................ 1,340 50 Cable & Wireless PLC ............. 126 50 Cadbury Schweppes PLC ............ 374 29 Carlton Communications PLC ....... 94 269 Centrica PLC ..................... 833 100 Commercial Union PLC ............. 804 100 Compass Group PLC ................ 606 346 Corus Group PLC (b) .............. 442 303 Diageo PLC ....................... 3,941 100 Dimensions Data Holdings PLC (b) ............................ 62 51 EMI Group PLC .................... 194 250 Friends Provident PLC ............ 552 202 Glaxosmithkline PLC (c) .......... 4,372 30 Granada Compass PLC .............. 51 33 Great Universal Stores PLC ....... 307 129 Hanson PLC ....................... 923 377 Imperial Chemical Industries PLC ............................ 1,835 40 Imperial Tobacco ................. 651 558 Invensys PLC ..................... 757 50 Irish Life & Permanent PLC ....... 463 92 J Sainsbury PLC .................. 498 94 Kingfisher PLC ................... 452 200 Ladbroke Group PLC ............... 694 178 Lattice Group PLC ................ 464 334 Lloyds TSB Group PLC ............. 3,328 172 Marks & Spencer Group PLC ........ 975 212 Marks & Spencer Group, Class B PLC (b) ............................ 222 249 MMO2 PLC (b) ..................... 159 100 National Grid Group PLC .......... 710 129 National Power PLC (b) ........... 330 30 Next PLC ......................... 426 100 Old Mutual PLC ................... 142 150 Parthus Technologies PLC (b) ..... 47 50 Pearson PLC ...................... 497 208 Prudential Corp., PLC ............ 1,906 89 Rank Group PLC ................... 364 40 Reckitt & Colman ................. 718 50 Reed International PLC ........... 475 35 Rentokil Initial PLC ............. 144 141 Reuters Group PLC ................ 746 46 Rio Tinto PLC .................... 838 27 RMC Group PLC .................... 267
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Common Stocks, continued: United Kingdom, continued: 71 Rolls-Royce PLC .................. $ 176 167 Royal & Sun Alliance Insurance Group PLC ...................... 613 155 Royal Bank of Scotland Group PLC ............................ 4,391 50 Schroders PLC .................... 446 92 Scottish Power PLC ............... 497 60 Shell Transportation & Trading Co., PLC ....................... 453 200 Shire Pharmaceuticals Group PLC (b) ............................ 1,768 200 Smith & Nephew PLC ............... 1,110 18 Smiths Industries PLC ............ 230 110 Taylor Woodrow PLC ............... 301 195 Tesco PLC ........................ 708 50 Thus Group PLC (b) ............... 9 232 Unilever PLC ..................... 2,114 435 Vodafone Group ADR ............... 5,939 1,978 Vodaphone Group PLC (c) .......... 2,713 80 William Hill PLC (b) ............. 323 50 Wolseley PLC ..................... 507 102 Woolworths Group PLC ............. 63 20 Zeneca PLC ....................... 828 -------- 71,871 -------- United States (0.2%): 25 America Movil .................... 335 4 Claxson Interactive Group, Class A (b) ............................ 0 45 Starmedia Network, Inc. (b) ...... 2 4 Transocean Sedco Forex, Inc. ..... 125 44 UTStarcom, Inc. (b) .............. 877 -------- 1,339 -------- Total Common Stocks 711,984 -------- Corporate Bonds (0.0%): United Kingdom (0.0%): $ 36 BG Transco Holdings PLC, 7.06%, 12/14/09* ...................... 54 36 BG Transco Holdings PLC, 4.19%, 12/14/22* ...................... 66 36 BG Transco Holdings PLC, 7.00%, 12/16/24 ....................... 60 -------- Total Corporate Bonds 180 -------- iShares (1.0%): France (0.2%): 100 MSCI France Index Fund ........... 1,830 -------- Germany (0.4%): 225 MSCI Germany Index Fund .......... 3,272 -------- Japan (0.2%): 155 MSCI Japan Index Fund ............ 1,302 --------
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 104 Report
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- iShares, continued: United Kingdom (0.2%): 110 MSCI United Kingdom Index Fund ... $ 1,529 -------- Total iShares 7,933 -------- Preferred Stocks (0.3%): Australia (0.2%): 213 News Corp., Ltd. ................. 979 13 News Corp., Ltd. ADR ............. 253 -------- 1,232 -------- Brazil (0.0%): 57,000 Telecomunicacoes Brasileiras SA (b) ............................ 0 220,000 Telesp Celular Participacoes ..... 345 -------- Germany (0.1%): 29 Man AG Vorzugsaktien ............. 507 10 RWE AG ........................... 309 -------- 816 -------- Total Preferred Stocks 2,393 -------- Rights (0.0%): Switzerland (0.0%): 19 Swiss Reinsurance Rights ......... 0 -------- Total Rights 0 --------
Shares or Principal Amount Security Description Value --------- ---------------------------------- -------- Warrants (0.0%): Thailand (0.0%): 28 Siam Commercial Bank (b) ......... $ 0 -------- Total Warrants 0 -------- U.S. Treasury Obligations (0.3%): U.S. Treasury Bills (0.3%): $ 2,700 11/29/02 (c) ..................... 2,681 -------- Total U.S. Treasury Obligations 2,681 -------- Investment Companies (3.8%): 31,994 One Group Prime Money Market Fund, Class I ........................ 31,994 -------- Total Investment Companies 31,994 -------- Repurchase Agreement (1.6%): $13,566 State Street Bank and Trust, 1.55%, 7/1/02 (Proceeds at Maturity $13,568, collateralized by various U.S. Government securities) .................... 13,566 -------- Total Repurchase Agreement 13,566 -------- Total (Cost $779,029)(a) $770,731 ========
------------ Percentages indicated are based on net assets of $831,807. (a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of the losses recognized for financial reporting purposes in excess of federal income tax reporting. Cost for federal income tax purposes differs from value by net unrealized appreciation (depreciation) of securities as follows (amounts in thousands): Unrealized appreciation...................... $ 115,241 Unrealized depreciation...................... (142,298) --------- Net unrealized appreciation (depreciation)... $ (27,057) =========
(b) Non-income producing securities. (c) Segregated as collateral for Futures Contracts. Amounts shown as 0 are either 0, or rounded to less than 1,000. * The interest rate for these variable rate securities, which will change periodically, is based upon prime rates or an index of market rates. The rate reflected on the Schedule of Portfolio Investments is the rate in effect at June 30, 2002.
ADR American Depository Receipt GDR Global Depository Receipt
Continued One Group Diversified International Fund -------------------------------------------------------------------------------- Schedule of Portfolio Investments, continued (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 105 Report The following represents the allocations by industry for common stocks, preferred stocks, and corporate bonds based on net assets:
Industry Percentage -------- ---------- Commercial Services............................. 1.5% Communications.................................. 9.1% Consumer Durables............................... 5.3% Consumer Non-Durables........................... 5.9% Consumer Services............................... 3.0% Distribution Services........................... 0.8% Electronic Technology........................... 10.9% Energy.......................................... 7.1% Financial Services.............................. 21.6% Health Care..................................... 0.0% Health Technology............................... 5.7% Industrial Services............................. 1.4% Miscellaneous................................... 1.2% Non-Energy Minerals............................. 4.2% Process Industries.............................. 5.0% Producer Manufacturing.......................... 6.1% Retail.......................................... 3.0% Technology Services............................. 1.3% Transportation.................................. 4.2% Utilities....................................... 2.9%
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 106 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Assets and Liabilities (Amounts in thousands, except per share amounts)
Small Cap Small Cap Mid Cap Mid Cap Diversified Growth Value Growth Value Mid Cap Fund Fund Fund Fund Fund --------- --------- ---------- ---------- ----------- Assets: Investments, at cost .................................... $424,178 $711,944 $1,889,568 $1,364,446 $ 896,574 Unrealized appreciation (depreciation) from investments ........................................... 26,409 89,132 89,654 137,993 104,566 -------- -------- ---------- ---------- ---------- Investments, at value ................................... 450,587 801,076 1,979,222 1,502,439 1,001,140 Cash .................................................... 2,406 369 -- -- 34 Interest and dividends receivable ....................... 139 795 503 1,477 883 Receivable for capital shares issued .................... 251 327 890 896 332 Receivable from brokers for investments sold ............ 3,653 4,994 2,967 2,642 2,087 Collateral received for securities on loan .............. 40,716 47,881 144,572 115,816 60,720 Prepaid expenses ........................................ 1 1 4 3 2 -------- -------- ---------- ---------- ---------- Total Assets ............................................ 497,753 855,443 2,128,158 1,623,273 1,065,198 -------- -------- ---------- ---------- ---------- Liabilities: Dividends payable ....................................... -- 990 -- 1,380 54 Payable to brokers for investments purchased ............ -- 13,581 5,256 2,411 -- Payable for capital shares redeemed ..................... 53 631 583 131 52 Payable for return of collateral received for securities on loan ............................................... 40,716 47,881 144,572 115,816 60,720 Accrued expenses and other payables: Investment advisory fees .............................. 280 483 1,124 926 625 Administration fees ................................... 61 105 270 202 136 Distribution fees ..................................... 33 75 349 107 45 Other ................................................. 171 151 780 490 326 -------- -------- ---------- ---------- ---------- Total Liabilities ....................................... 41,314 63,897 152,934 121,463 61,958 -------- -------- ---------- ---------- ---------- Net Assets: Capital ................................................. 499,379 667,135 2,255,858 1,315,224 914,713 Undistributed (distributions in excess of) net investment income ................................................ (6) (68) (38) (142) (74) Accumulated undistributed net realized gains (losses) from investments, options and futures transactions .... (69,343) 35,347 (370,250) 48,735 (15,965) Net unrealized appreciation (depreciation) from investments, options and futures ...................... 26,409 89,132 89,654 137,993 104,566 -------- -------- ---------- ---------- ---------- Net Assets .............................................. $456,439 $791,546 $1,975,224 $1,501,810 $1,003,240 ======== ======== ========== ========== ========== Net Assets: Class I ............................................... $376,910 $629,011 $1,313,208 $1,237,701 $ 835,901 Class A ............................................... 52,918 96,595 336,995 178,569 149,373 Class B ............................................... 23,792 30,017 268,231 73,191 14,727 Class C ............................................... 2,819 35,923 56,790 12,349 3,239 -------- -------- ---------- ---------- ---------- Total ................................................... $456,439 $791,546 $1,975,224 $1,501,810 $1,003,240 ======== ======== ========== ========== ========== Outstanding Units of Beneficial Interest (Shares): Class I ............................................... 40,847 29,684 70,245 80,742 52,060 Class A ............................................... 5,791 4,641 18,480 11,603 9,428 Class B ............................................... 2,778 1,504 16,276 4,849 952 Class C ............................................... 322 1,805 3,180 818 209 -------- -------- ---------- ---------- ---------- Total ................................................... 49,738 37,634 108,181 98,012 62,649 ======== ======== ========== ========== ========== Net Asset Value Class I -- Offering and redemption price per share .... $ 9.23 $ 21.19 $ 18.70 $ 15.33 $ 16.06 ======== ======== ========== ========== ========== Class A -- Redemption price per share ................. $ 9.14 $ 20.81 $ 18.24 $ 15.39 $ 15.84 ======== ======== ========== ========== ========== Maximum sales charge ................................ 5.25% 5.25% 5.25% 5.25% 5.25% ======== ======== ========== ========== ========== Maximum offering price per share (100%/(100% -maximum sales charge) of net asset value adjusted to the nearest cent) ..................................... $ 9.65 $ 21.96 $ 19.25 $ 16.24 $ 16.72 ======== ======== ========== ========== ========== Class B -- Offering price per share (a) ............... $ 8.57 $ 19.97 $ 16.48 $ 15.09 $ 15.48 ======== ======== ========== ========== ========== Class C -- Offering price per share (a) ............... $ 8.76 $ 19.91 $ 17.86 $ 15.09 $ 15.49 ======== ======== ========== ========== ==========
------------ (a) Redemption price for Class B and Class C shares varies based on the length of time the shares are held. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 107 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Assets and Liabilities (Amounts in thousands, except per share amounts)
Large Cap Large Cap Equity Diversified Growth Value Income Equity Balanced Fund Fund Fund Fund Fund ---------- ---------- -------- ----------- -------- Assets: Investments, at cost .................................... $1,896,007 $1,242,922 $307,250 $1,738,083 $392,741 Unrealized appreciation (depreciation) from investments ........................................... 281,305 (10,021) 226,760 40,349 6,368 ---------- ---------- -------- ---------- -------- Investments, at value ................................... 2,177,312 1,232,901 534,010 1,778,432 399,109 Interest and dividends receivable ....................... 1,750 1,136 915 1,761 1,982 Receivable for capital shares issued .................... 1,970 39 62 191 299 Receivable from brokers for investments sold ............ 258,566 4,188 1,557 -- 4 Collateral received for securities on loan .............. 82,650 79,593 21,372 45,900 28,700 Prepaid expenses ........................................ 6 3 1 4 1 ---------- ---------- -------- ---------- -------- Total Assets ............................................ 2,522,254 1,317,860 557,917 1,826,288 430,095 ---------- ---------- -------- ---------- -------- Liabilities: Dividends payable ....................................... -- 2,523 492 1,958 630 Payable to brokers for investments purchased ............ 239,445 6,401 587 -- -- Payable for capital shares redeemed ..................... 877 80 266 149 346 Payable for return of collateral received for securities on loan ............................................... 82,650 79,593 21,372 45,900 28,700 Accrued expenses and other payables: Investment advisory fees .............................. 1,179 763 324 1,103 168 Administration fees ................................... 302 167 73 243 54 Distribution fees ..................................... 405 31 110 87 215 Other ................................................. 726 414 272 661 219 ---------- ---------- -------- ---------- -------- Total Liabilities ....................................... 325,584 89,972 23,496 50,101 30,332 ---------- ---------- -------- ---------- -------- Net Assets: Capital ................................................. 2,861,773 1,343,269 293,751 1,785,618 408,437 Undistributed (distributions in excess of) net investment income ................................................ (75) (118) (68) (174) 32 Accumulated undistributed net realized gains (losses) from investments and futures transactions ............. (946,333) (105,242) 13,978 (49,606) (15,074) Net unrealized appreciation (depreciation) from investments and futures ............................... 281,305 (10,021) 226,760 40,349 6,368 ---------- ---------- -------- ---------- -------- Net Assets .............................................. $2,196,670 $1,227,888 $534,421 $1,776,187 $399,763 ========== ========== ======== ========== ======== Net Assets: Class I ............................................... $1,540,526 $1,161,684 $332,490 $1,528,790 $ 60,442 Class A ............................................... 247,732 39,546 95,276 193,278 112,233 Class B ............................................... 386,175 23,015 105,010 39,421 224,235 Class C ............................................... 22,237 3,643 1,645 14,698 2,853 ---------- ---------- -------- ---------- -------- Total ................................................... $2,196,670 $1,227,888 $534,421 $1,776,187 $399,763 ========== ========== ======== ========== ======== Outstanding Units of Beneficial Interest (Shares): Class I ............................................... 124,936 90,987 20,328 146,211 5,187 Class A ............................................... 19,635 3,073 5,845 18,545 9,622 Class B ............................................... 32,635 1,801 6,452 3,911 19,143 Class C ............................................... 1,896 285 101 1,448 244 ---------- ---------- -------- ---------- -------- Total ................................................... 179,102 96,146 32,726 170,115 34,196 ========== ========== ======== ========== ======== Net Asset Value Class I -- Offering and redemption price per share .... $ 12.33 $ 12.77 $ 16.36 $ 10.46 $ 11.65 ========== ========== ======== ========== ======== Class A -- Redemption price per share ................. $ 12.62 $ 12.87 $ 16.30 $ 10.42 $ 11.66 ========== ========== ======== ========== ======== Maximum sales charge ................................ 5.25% 5.25% 5.25% 5.25% 5.25% ========== ========== ======== ========== ======== Maximum offering price per share (100%/(100% -maximum sales charge) of net asset value adjusted to the nearest cent) ..................................... $ 13.32 $ 13.58 $ 17.20 $ 11.00 $ 12.31 ========== ========== ======== ========== ======== Class B -- Offering price per share (a) ............... $ 11.83 $ 12.78 $ 16.28 $ 10.08 $ 11.71 ========== ========== ======== ========== ======== Class C -- Offering price per share (a) ............... $ 11.73 $ 12.76 $ 16.28 $ 10.15 $ 11.71 ========== ========== ======== ========== ========
------------ (a) Redemption price for Class B and Class C shares varies based on the length of time the shares are held. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 108 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Assets and Liabilities (Amounts in thousands, except per share amounts)
Equity Market Health International Diversified Index Expansion Technology Sciences Equity International Fund Index Fund Fund Fund Index Fund Fund ---------- ---------- ----------- -------- ------------- ------------- Assets: Investments, at cost ......................... $2,074,056 $66,376 $ 52,195 $16,944 $599,989 $779,029 Unrealized appreciation (depreciation) from investments ................................ 576,537 4,012 (23,641) (1,878) (1,927) (8,298) ---------- ------- -------- ------- -------- -------- Investments, at value ........................ 2,650,593 70,388 28,554 15,066 598,062 770,731 Cash ......................................... 5 -- -- -- -- 217 Foreign currency, at value (cost $0; $0; $0; $0; $13,994; $50,795) ...................... -- -- -- -- 14,577 52,881 Interest and dividends receivable ............ 3,139 44 10 2 2,625 4,065 Receivable for capital shares issued ......... 569 230 83 33 91 4 Receivable from brokers for investments sold ....................................... -- 4 88 293 2,560 29,063 Net receivable for variation margin on futures contracts .................................. -- -- -- -- 544 949 Tax reclaim receivable ....................... -- -- -- -- 481 260 Collateral received for securities on loan ... 171,188 4,587 1,696 369 153,459 113,904 Prepaid expenses ............................. 6 -- -- -- 1 2 ---------- ------- -------- ------- -------- -------- Total Assets ................................. 2,825,500 75,253 30,431 15,763 772,400 972,076 ---------- ------- -------- ------- -------- -------- Liabilities: Dividends payable ............................ 6,804 21 -- -- -- -- Payable to brokers for investments purchased .................................. -- 589 -- 239 1,887 25,013 Payable for capital shares redeemed .......... 1,215 26 33 16 59 -- Net payable for variation margin on futures contracts .................................. 58 -- -- -- -- -- Payable for return of collateral received for securities on loan ......................... 171,188 4,587 1,696 369 153,459 113,904 Accrued expenses and other payables: Investment advisory fees ................... 245 8 -- -- 277 497 Administration fees ........................ 223 9 -- -- 81 110 Distribution fees .......................... 546 15 11 8 23 11 Other ...................................... 967 37 99 35 918 734 ---------- ------- -------- ------- -------- -------- Total Liabilities ............................ 181,246 5,292 1,839 667 156,704 140,269 ---------- ------- -------- ------- -------- -------- Net Assets: Capital ...................................... 2,254,230 66,308 75,625 18,549 656,886 894,135 Undistributed (distributions in excess of) net investment income .......................... (172) (4) -- -- (1,502) (337) Accumulated undistributed net realized gains (losses) from investments, options and futures transactions ....................... (185,751) (355) (23,392) (1,575) (38,435) (55,743) Net unrealized appreciation (depreciation) from investments, options and futures ...... 575,947 4,012 (23,641) (1,878) (1,253) (6,248) ---------- ------- -------- ------- -------- -------- Net Assets ................................... $2,644,254 $69,961 $ 28,592 $15,096 $615,696 $831,807 ========== ======= ======== ======= ======== ======== Net Assets: Class I .................................... $1,663,601 $42,115 $ 2,524 $ 276 $564,207 $795,180 Class A .................................... 452,983 11,047 18,643 7,705 30,981 29,414 Class B .................................... 415,408 10,368 6,686 6,635 12,006 6,670 Class C .................................... 112,262 6,431 739 480 8,502 543 ---------- ------- -------- ------- -------- -------- Total ........................................ $2,644,254 $69,961 $ 28,592 $15,096 $615,696 $831,807 ========== ======= ======== ======= ======== ======== Outstanding Units of Beneficial Interest (Shares): Class I .................................... 73,622 4,900 705 31 40,009 66,997 Class A .................................... 20,044 1,287 5,231 872 2,200 2,488 Class B .................................... 18,464 1,208 1,904 758 898 615 Class C .................................... 4,983 767 210 55 614 50 ---------- ------- -------- ------- -------- -------- Total ........................................ 117,113 8,162 8,050 1,716 43,721 70,150 ========== ======= ======== ======= ======== ======== Net Asset Value Class I -- Offering and redemption price per share .................................... $ 22.60 $ 8.60 $ 3.58 $ 8.88 $ 14.10 $ 11.87 ========== ======= ======== ======= ======== ======== Class A -- Redemption price per share ...... $ 22.60 $ 8.58 $ 3.56 $ 8.84 $ 14.08 $ 11.83 ========== ======= ======== ======= ======== ======== Maximum sales charge ..................... 5.25% 5.25% 5.25% 5.25% 5.25% 5.25% ========== ======= ======== ======= ======== ======== Maximum offering price per share (100%/(100% - maximum sales charge) of net asset value adjusted to the nearest cent) .................................. $ 23.85 $ 9.06 $ 3.76 $ 9.33 $ 14.86 $ 12.49 ========== ======= ======== ======= ======== ======== Class B -- Offering price per share (a) .... $ 22.50 $ 8.58 $ 3.51 $ 8.75 $ 13.37 $ 10.84 ========== ======= ======== ======= ======== ======== Class C -- Offering price per share (a) .... $ 22.53 $ 8.39 $ 3.52 $ 8.74 $ 13.85 $ 10.82 ========== ======= ======== ======= ======== ========
------------ (a) Redemption price for Class B and Class C shares varies based on the length of time the shares are held. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 109 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Operations (Amounts in thousands)
Small Cap Small Cap Mid Cap Mid Cap Diversified Growth Value Growth Value Mid Cap Fund Fund Fund Fund Fund --------- --------- --------- -------- ----------- Investment Income: Dividend income ............................................ $ 1,420 $ 9,333 $ 8,006 $ 21,473 $ 11,277 Interest income ............................................ 5 68 -- 104 22 Income from securities lending ............................. 167 92 552 296 307 -------- ------- --------- -------- -------- Total Income ............................................... 1,592 9,493 8,558 21,873 11,606 -------- ------- --------- -------- -------- Expenses: Investment advisory fees ................................... 2,969 4,083 14,823 10,488 7,662 Administration fees ........................................ 647 890 3,286 2,288 1,670 Distribution fees (Class A) ................................ 181 210 1,136 488 538 Distribution fees (Class B) ................................ 239 178 2,989 631 129 Distribution fees (Class C) ................................ 20 134 597 64 23 Custodian fees ............................................. 73 46 103 71 48 Legal and audit fees ....................................... 9 11 23 17 13 Trustees' fees and expenses ................................ 6 7 33 21 15 Transfer agent fees ........................................ 419 350 2,886 800 599 Registration and filing fees ............................... 65 89 234 94 95 Printing and mailing costs ................................. 54 64 313 150 103 Other ...................................................... 21 24 30 26 26 -------- ------- --------- -------- -------- Total expenses before waivers .............................. 4,703 6,086 26,453 15,138 10,921 Less waivers ............................................... (106) (171) (1,935) (295) (321) -------- ------- --------- -------- -------- Net Expenses ............................................... 4,597 5,915 24,518 14,843 10,600 -------- ------- --------- -------- -------- Net Investment Income (Loss) ............................... (3,005) 3,578 (15,960) 7,030 1,006 -------- ------- --------- -------- -------- Realized/Unrealized Gains (Losses) from Investments, Options and Futures: Net realized gains (losses) from investments transactions ............................................. (18,750) 44,977 (187,927) 73,009 (8,775) Net realized gains (losses) from options and futures transactions.............................................. -- -- -- 743 -- Net change in unrealized appreciation (depreciation) from investments, options and futures ......................... (26,919) 25,418 (140,215) (73,537) (83,771) -------- ------- --------- -------- -------- Net realized/unrealized gains (losses) on investments, options and futures ...................................... (45,669) 70,395 (328,142) 215 (92,546) -------- ------- --------- -------- -------- Change in net assets resulting from operations ............. $(48,674) $73,973 $(344,102) $ 7,245 $(91,540) ======== ======= ========= ======== ========
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 110 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Operations (Amounts in thousands)
Large Cap Large Cap Equity Diversified Growth Value Income Equity Balanced Fund Fund Fund Fund Fund --------- --------- -------- ----------- ----------- Investment Income: Dividend income ............................................ $ 23,220 $ 22,685 $ 14,024 $ 27,903 $ 3,785 Interest income ............................................ 6 -- 157 12 11,413 Income from securities lending ............................. 302 314 68 230 99 --------- --------- -------- --------- -------- Total Income ............................................... 23,528 22,999 14,249 28,145 15,297 --------- --------- -------- --------- -------- Expenses: Investment advisory fees ................................... 19,790 10,295 4,452 14,291 2,917 Administration fees ........................................ 4,514 2,245 970 3,156 724 Distribution fees (Class A) ................................ 1,187 223 325 742 425 Distribution fees (Class B) ................................ 5,079 277 1,165 425 2,531 Distribution fees (Class C) ................................ 291 39 13 167 18 Custodian fees ............................................. 107 77 23 79 38 Interest expense ........................................... -- 2 -- -- -- Legal and audit fees ....................................... 26 19 9 23 9 Trustees' fees and expenses ................................ 44 26 8 34 7 Transfer agent fees ........................................ 4,711 802 504 1,457 790 Registration and filing fees ............................... 181 86 40 98 48 Printing and mailing costs ................................. 462 166 68 233 77 Other ...................................................... 49 35 15 44 37 --------- --------- -------- --------- -------- Total expenses before waivers .............................. 36,441 14,292 7,592 20,749 7,621 Less waivers ............................................... (3,104) (141) (247) (526) (775) --------- --------- -------- --------- -------- Net Expenses ............................................... 33,337 14,151 7,345 20,223 6,846 --------- --------- -------- --------- -------- Net Investment Income (Loss) ............................... (9,809) 8,848 6,904 7,922 8,451 --------- --------- -------- --------- -------- Realized/Unrealized Gains (Losses) from Investments and Futures: Net realized gains (losses) from investments transactions ............................................. (377,101) (61,911) 20,951 (49,204) (9,086) Net realized gains (losses) from options and futures transactions.............................................. (246) -- -- -- -- Net change in unrealized appreciation (depreciation) from investments and futures .................................. (498,448) (254,674) (89,617) (355,999) (43,648) --------- --------- -------- --------- -------- Net realized/unrealized gains (losses) on investments and futures .................................................. (875,795) (316,585) (68,666) (405,203) (52,734) --------- --------- -------- --------- -------- Change in net assets resulting from operations ............. $(885,604) $(307,737) $(61,762) $(397,281) $(44,283) ========= ========= ======== ========= ========
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 111 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Operations (Amounts in thousands)
Market International Equity Expansion Health Equity Diversified Index Index Technology Sciences Index International Fund Fund Fund Fund Fund Fund --------- --------- ----------- -------- ------------- ------------- Investment Income: Dividend income ................................ $ 41,816 $ 501 $ 100 $ 99 $ 11,052 $ 14,612 Interest income ................................ 61 2 2 2 10 566 Foreign tax withholding ........................ -- -- -- -- (1,314) (1,538) Income from securities lending ................. 553 12 5 7 628 708 --------- ------- -------- ------- -------- -------- Total Income ................................... 42,430 515 107 108 10,376 14,348 --------- ------- -------- ------- -------- -------- Expenses: Investment advisory fees ....................... 8,758 179 392 127 3,444 6,454 Administration fees ............................ 4,709 82 63 24 1,010 1,301 Distribution fees (Class A) .................... 1,973 22 92 26 96 102 Distribution fees (Class B) .................... 4,893 69 83 60 134 76 Distribution fees (Class C) .................... 1,226 32 10 6 88 6 Custodian fees ................................. 157 59 9 6 366 749 Interest expense ............................... -- -- -- -- 4 6 Legal and audit fees ........................... 28 7 6 5 11 10 Trustees' fees and expenses .................... 45 1 1 -- 10 10 Transfer agent fees ............................ 3,274 45 305 77 369 218 Registration and filing fees ................... 103 41 52 31 65 82 Printing and mailing costs ..................... 386 7 20 10 72 68 Offering costs ................................. -- -- -- 30 -- -- Other .......................................... 64 36 9 9 119 71 --------- ------- -------- ------- -------- -------- Total expenses before waivers .................. 25,616 580 1,042 411 5,788 9,153 Less waivers ................................... (7,871) (173) (374) (125) (77) (520) --------- ------- -------- ------- -------- -------- Net Expenses ................................... 17,745 407 668 286 5,711 8,633 --------- ------- -------- ------- -------- -------- Net Investment Income (Loss) ................... 24,685 108 (561) (178) 4,665 5,715 --------- ------- -------- ------- -------- -------- Realized/Unrealized Gains (Losses) from Investments and Futures: Net realized gains (losses) from investments transactions ................................. (95,358) (307) (10,581) (1,595) (19,480) (31,805) Net realized gains (losses) from options and futures transactions.......................... (5,470) -- -- 20 (7,899) (16,380) Net change in unrealized appreciation (depreciation) from investments, options and futures ...................................... (517,547) (983) (8,070) (2,590) (54,516) (27,876) --------- ------- -------- ------- -------- -------- Net realized/unrealized gains (losses) on investments, options and futures ............. (618,375) (1,290) (18,651) (4,165) (81,895) (76,061) --------- ------- -------- ------- -------- -------- Change in net assets resulting from operations ................................... $(593,690) $(1,182) $(19,212) $(4,343) $(77,230) $(70,346) ========= ======= ======== ======= ======== ========
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 112 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Changes in Net Assets (Amounts in thousands)
Small Cap Small Cap Mid Cap Growth Fund Value Fund Growth Fund ------------------- ------------------- ------------------------ Year Ended Year Ended Year Ended ------------------- ------------------- ------------------------ June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 -------- -------- -------- -------- ---------- ---------- From Investment Activities: Operations: Net investment income (loss) ............... $ (3,005) $ (2,455) $ 3,578 $ 3,462 $ (15,960) $ (18,601) Net realized gains (losses) from investments, options and futures transactions ............................. (18,750) (33,249) 44,977 24,483 (187,927) (132,257) Net change in unrealized appreciation (depreciation) from investments and futures .................................. (26,919) 2,243 25,418 66,708 (140,215) (191,653) -------- -------- -------- -------- ---------- ---------- Change in net assets resulting from operations ................................... (48,674) (33,461) 73,973 94,653 (344,102) (342,511) -------- -------- -------- -------- ---------- ---------- Distributions to Class I Shareholders: From net investment income ................. -- -- (3,325) (3,215) -- -- From net realized gains .................... -- (28,227) (19,483) -- (4,598) (235,730) Distributions to Class A Shareholders: From net investment income ................. -- -- (285) (248) -- -- From net realized gains .................... -- (7,977) (2,543) -- (1,165) (53,128) Distributions to Class B Shareholders: From net investment income ................. -- -- (6) (23) -- -- From net realized gains .................... -- (3,453) (737) -- (1,228) (53,386) Distributions to Class C Shareholders: From net investment income ................. -- -- (9) (3) -- -- From net realized gains .................... -- (109) (208) -- (222) (9,987) -------- -------- -------- -------- ---------- ---------- Change in net assets from shareholder distributions ................................ -- (39,766) (26,596) (3,489) (7,213) (352,231) -------- -------- -------- -------- ---------- ---------- Capital Transactions: Change in net assets from capital transactions ................................. 147,227 77,016 370,012 85,764 170,703 501,319 -------- -------- -------- -------- ---------- ---------- Change in net assets ........................... 98,553 3,789 417,389 176,928 (180,612) (193,423) Net Assets: Beginning of period ........................ 357,886 354,097 374,157 197,229 2,155,836 2,349,259 -------- -------- -------- -------- ---------- ---------- End of period .............................. $456,439 $357,886 $791,546 $374,157 $1,975,224 $2,155,836 ======== ======== ======== ======== ========== ==========
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 113 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Changes in Net Assets (Amounts in thousands)
Mid Cap Diversified Large Cap Value Fund Mid Cap Fund Growth Fund ----------------------- ----------------------- ------------------------ Year Ended Year Ended Year Ended ----------------------- ----------------------- ------------------------ June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 ---------- ---------- ---------- ---------- ---------- ---------- From Investment Activities: Operations: Net investment income (loss) ....... $ 7,030 $ 8,779 $ 1,006 $ 1,472 $ (9,809) $ (24,520) Net realized gains (losses) from investments, options and futures transactions ..................... 73,752 112,537 (8,775) 95,460 (377,347) (547,753) Net change in unrealized appreciation (depreciation) from investments, options and futures .......................... (73,537) 209,940 (83,771) (32,370) (498,448) (1,036,884) ---------- ---------- ---------- ---------- ---------- ---------- Change in net assets resulting from operations ........................... 7,245 331,256 (91,540) 64,562 (885,604) (1,609,157) ---------- ---------- ---------- ---------- ---------- ---------- Distributions to Class I Shareholders: From net investment income ......... (6,617) (8,329) (1,001) (1,545) -- -- From net realized gains ............ (96,280) (48,965) (43,129) (179,075) -- (104,822) Distributions to Class A Shareholders: From net investment income ......... (437) (541) -- (8) -- -- From net realized gains ............ (10,281) (4,437) (8,352) (44,969) -- (22,024) Distributions to Class B Shareholders: From net investment income ......... -- -- -- -- -- -- From net realized gains ............ (4,827) (1,707) (612) (3,662) -- (34,243) Distributions to Class C Shareholders: From net investment income ......... -- (1) -- -- -- -- From net realized gains ............ (300) (11) (93) (91) -- (2,022) ---------- ---------- ---------- ---------- ---------- ---------- Change in net assets from shareholder distributions ........................ (118,742) (63,991) (53,187) (229,350) -- (163,111) ---------- ---------- ---------- ---------- ---------- ---------- Capital Transactions: Change in net assets from capital transactions ......................... 249,445 10,563 66,248 189,045 (44,043) 84,132 ---------- ---------- ---------- ---------- ---------- ---------- Change in net assets ................... 137,948 277,828 (78,479) 24,257 (929,647) (1,688,136) Net Assets: Beginning of period ................ 1,363,862 1,086,034 1,081,719 1,057,462 3,126,317 4,814,453 ---------- ---------- ---------- ---------- ---------- ---------- End of period ...................... $1,501,810 $1,363,862 $1,003,240 $1,081,719 $2,196,670 $3,126,317 ========== ========== ========== ========== ========== ==========
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 114 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Changes in Net Assets (Amounts in thousands)
Large Cap Equity Diversified Value Fund Income Fund Equity Fund ----------------------- ------------------- ------------------------ Year Ended Year Ended Year Ended ----------------------- ------------------- ------------------------ June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 ---------- ---------- -------- -------- ---------- ---------- From Investment Activities: Operations: Net investment income (loss) ........... $ 8,848 $ 10,992 $ 6,904 $ 7,642 $ 7,922 $ 4,272 Net realized gains (losses) from investments and futures transactions ......................... (61,911) (2,886) 20,951 69,276 (49,204) 8,602 Net change in unrealized appreciation (depreciation) from investments and futures .............................. (254,674) 108,964 (89,617) (42,436) (355,999) (285,525) ---------- ---------- -------- -------- ---------- ---------- Change in net assets resulting from operations ............................... (307,737) 117,070 (61,762) 34,482 (397,281) (272,651) ---------- ---------- -------- -------- ---------- ---------- Distributions to Class I Shareholders: From net investment income ............. (8,624) (10,891) (5,268) (6,138) (7,410) (4,377) From net realized gains ................ (15,797) (37,195) (23,541) (62,771) (5,305) (30,214) Distributions to Class A Shareholders: From net investment income ............. (229) (287) (1,018) (992) (414) (114) From net realized gains ................ (871) (1,176) (5,139) (12,075) (698) (4,805) Distributions to Class B Shareholders: From net investment income ............. -- -- (611) (563) -- -- From net realized gains ................ (340) (657) (6,844) (16,449) (141) (896) Distributions to Class C Shareholders: From net investment income ............. -- -- (7) (6) -- -- From net realized gains ................ (43) (67) (67) (155) (56) (279) ---------- ---------- -------- -------- ---------- ---------- Change in net assets from shareholder distributions ............................ (25,904) (50,273) (42,495) (99,149) (14,024) (40,685) ---------- ---------- -------- -------- ---------- ---------- Capital Transactions: Change in net assets from capital transactions ............................. (95,440) 41,985 (23,317) (104,405) 148,599 85,876 ---------- ---------- -------- -------- ---------- ---------- Change in net assets ....................... (429,081) 108,782 (127,574) (169,072) (262,706) (227,460) Net Assets: Beginning of period .................... 1,656,969 1,548,187 661,995 831,067 2,038,893 2,266,353 ---------- ---------- -------- -------- ---------- ---------- End of period .......................... $1,227,888 $1,656,969 $534,421 $661,995 $1,776,187 $2,038,893 ========== ========== ======== ======== ========== ==========
See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 115 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Changes in Net Assets (Amounts in thousands)
Balanced Equity Market Expansion Fund Index Fund Index Fund ------------------- ----------------------- -------------------- Year Ended Year Ended Year Ended ------------------- ----------------------- -------------------- June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 -------- -------- ---------- ---------- -------- -------- From Investment Activities: Operations: Net investment income (loss) ............... $ 8,451 $ 10,136 $ 24,685 $ 20,539 $ 108 $ 172 Net realized gains (losses) from investments and futures transactions ................. (9,086) 4,858 (100,828) (21,432) (307) 960 Net change in unrealized appreciation (depreciation) from investments and futures .................................. (43,648) (37,431) (517,547) (566,175) (983) 1,887 -------- -------- ---------- ---------- -------- -------- Change in net assets resulting from operations ................................... (44,283) (22,437) (593,690) (567,068) (1,182) 3,019 -------- -------- ---------- ---------- -------- -------- Distributions to Class I Shareholders: From net investment income ................. (1,826) (2,419) (19,446) (15,836) (106) (164) From net realized gains .................... -- -- -- -- (132) (2,937) Distributions to Class A Shareholders: From net investment income ................. (2,766) (3,139) (4,646) (4,821) (5) (9) From net realized gains .................... -- -- -- -- (17) (238) Distributions to Class B Shareholders: From net investment income ................. (3,841) (4,579) (474) -- -- -- From net realized gains .................... -- -- -- -- (22) (303) Distributions to Class C Shareholders: From net investment income ................. (29) (20) (139) -- -- --(a) From net realized gains .................... -- -- -- -- (5) (25) -------- -------- ---------- ---------- -------- -------- Change in net assets from shareholder distributions ................................ (8,462) (10,157) (24,705) (20,657) (287) (3,676) -------- -------- ---------- ---------- -------- -------- Capital Transactions: Change in net assets from capital transactions ................................. (38,688) (50,191) 104,602 30,166 30,351 8,296 -------- -------- ---------- ---------- -------- -------- Change in net assets ........................... (91,433) (82,785) (513,793) (557,559) 28,882 7,639 Net Assets: Beginning of period ........................ 491,196 573,981 3,158,047 3,715,606 41,079 33,440 -------- -------- ---------- ---------- -------- -------- End of period .............................. $399,763 $491,196 $2,644,254 $3,158,047 $ 69,961 $ 41,079 ======== ======== ========== ========== ======== ========
------------ (a) Amount is less than $1,000. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 116 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Statements of Changes in Net Assets (Amounts in thousands)
Technology Health Sciences International Equity Diversified Fund Fund Index Fund International Fund ------------------- -------------------- -------------------- --------------------- Year July 28, Year March 23, Year Ended Year Ended Ended 2000 to Ended 2001 to -------------------- --------------------- June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 (a) 2002 2001 (a) 2002 2001 2002 2001 -------- -------- -------- --------- -------- --------- -------- --------- From Investment Activities: Operations: Net investment income (loss) ........ $ (561) $ (621) $ (178) $ (19) $ 4,665 $ 9,063 $ 5,715 $ 9,790 Net realized gains (losses) from investments and futures transactions ...................... (10,581) (12,660) (1,575) 39 (27,379) (4,794) (48,185) (10,364) Net change in unrealized appreciation (depreciation) from investments and futures ........................... (8,070) (15,571) (2,590) 712 (54,516) (231,125) (27,876) (245,045) -------- -------- ------- ------ -------- --------- -------- --------- Change in net assets resulting from operations .......................... (19,212) (28,852) (4,343) 732 (77,230) (226,856) (70,346) (245,619) -------- -------- ------- ------ -------- --------- -------- --------- Distributions to Class I Shareholders: From net investment income ........ -- -- -- -- (4,924) (7,371) (7,964) (4,905) From net realized gains ........... -- -- (3) -- -- (1,797) -- (14,786) Distributions to Class A Shareholders: From net investment income ........ -- -- -- -- (193) (360) (259) (69) From net realized gains ........... -- -- (18) -- -- (126) -- (601) Distributions to Class B Shareholders: From net investment income ........ -- -- -- -- (51) -- (47) -- From net realized gains ........... -- -- (13) -- -- (61) -- (137) Distributions to Class C Shareholders: From net investment income ........ -- -- -- -- (30) (18) (4) -- From net realized gains ........... -- -- (2) -- -- (29) -- (15) -------- -------- ------- ------ -------- --------- -------- --------- Change in net assets from shareholder distributions ....................... -- -- (36) -- (5,198) (9,762) (8,274) (20,513) -------- -------- ------- ------ -------- --------- -------- --------- Capital Transactions: Change in net assets from capital transactions ........................ 496 76,160 9,757 8,986 3,252 27,417 75,137 206,061 -------- -------- ------- ------ -------- --------- -------- --------- Change in net assets ................. (18,716) 47,308 5,378 9,718 (79,176) (209,201) (3,483) (60,071) Net Assets: Beginning of period ................. 47,308 -- 9,718 -- 694,872 904,073 835,290 895,361 -------- -------- ------- ------ -------- --------- -------- --------- End of period ....................... $ 28,592 $ 47,308 $15,096 $9,718 $615,696 $ 694,872 $831,807 $ 835,290 ======== ======== ======= ====== ======== ========= ======== =========
------------ (a) Period from commencement of operations. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 117 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Schedules of Capital Stock Activity (Amounts in thousands)
Small Cap Small Cap Mid Cap Growth Fund Value Fund Growth Fund -------------------- -------------------- -------------------- Year Ended Year Ended Year Ended -------------------- -------------------- -------------------- June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 -------- -------- -------- -------- -------- -------- Capital Transactions: Class I Shares: Proceeds from shares issued .............................. $209,203 $124,395 $343,410 $109,697 $375,223 $344,773 Dividends reinvested ..................................... -- 23,418 6,209 1,021 3,915 197,181 Cost of shares redeemed .................................. (68,956) (75,335) (85,170) (51,110) (258,102) (293,980) -------- -------- -------- -------- -------- -------- Change in net assets from Class I capital transactions .... $140,247 $ 72,478 $264,449 $ 59,608 $121,036 $247,974 ======== ======== ======== ======== ======== ======== Class A Shares: Proceeds from shares issued .............................. $ 33,620 $ 35,335 $ 89,342 $ 32,236 $177,719 $193,592 Dividends reinvested ..................................... -- 7,869 2,368 171 1,130 51,712 Cost of shares redeemed .................................. (29,873) (43,854) (39,136) (13,873) (121,317) (141,466) -------- -------- -------- -------- -------- -------- Change in net assets from Class A capital transactions .... $ 3,747 $ (650) $ 52,574 $ 18,534 $ 57,532 $103,838 ======== ======== ======== ======== ======== ======== Class B Shares: Proceeds from shares issued .............................. $ 7,519 $ 9,532 $ 24,568 $ 7,112 $ 32,092 $125,100 Dividends reinvested ..................................... -- 3,419 709 18 1,196 52,672 Cost of shares redeemed .................................. (5,911) (8,694) (6,574) (899) (43,978) (50,031) -------- -------- -------- -------- -------- -------- Change in net assets from Class B capital transactions .... $ 1,608 $ 4,257 $ 18,703 $ 6,231 $(10,690) $127,741 ======== ======== ======== ======== ======== ======== Class C Shares: Proceeds from shares issued .............................. $ 2,325 $ 1,173 $ 36,819 $ 1,448 $ 21,907 $ 31,020 Dividends reinvested ..................................... -- 109 154 1 216 9,909 Cost of shares redeemed .................................. (700) (351) (2,687) (58) (19,298) (19,163) -------- -------- -------- -------- -------- -------- Change in net assets from Class C capital transactions .... $ 1,625 $ 931 $ 34,286 $ 1,391 $ 2,825 $ 21,766 ======== ======== ======== ======== ======== ======== Share Transactions: Class I Shares: Issued ................................................... 21,689 11,627 16,998 6,297 18,521 14,444 Reinvested ............................................... -- 2,094 328 63 190 7,368 Redeemed ................................................. (7,066) (7,046) (4,118) (2,977) (12,574) (12,353) -------- -------- -------- -------- -------- -------- Change in Class I Shares .................................. 14,623 6,675 13,208 3,383 6,137 9,459 ======== ======== ======== ======== ======== ======== Class A Shares: Issued ................................................... 3,439 3,345 4,318 1,845 8,965 8,024 Reinvested ............................................... -- 709 127 11 56 1,972 Redeemed ................................................. (3,058) (4,210) (1,920) (829) (6,198) (6,083) -------- -------- -------- -------- -------- -------- Change in Class A Shares .................................. 381 (156) 2,525 1,027 2,823 3,913 ======== ======== ======== ======== ======== ======== Class B Shares: Issued ................................................... 814 893 1,249 419 1,773 5,458 Reinvested ............................................... -- 324 40 1 65 2,190 Redeemed ................................................. (647) (858) (342) (57) (2,470) (2,396) -------- -------- -------- -------- -------- -------- Change in Class B Shares .................................. 167 359 947 363 (632) 5,252 ======== ======== ======== ======== ======== ======== Class C Shares: Issued ................................................... 247 111 1,849 83 1,124 1,276 Reinvested ............................................... -- 10 9 --(a) 11 381 Redeemed ................................................. (74) (33) (136) (4) (1,005) (822) -------- -------- -------- -------- -------- -------- Change in Class C Shares .................................. 173 88 1,722 79 130 835 ======== ======== ======== ======== ======== ========
------------ (a) Amount is less than 1,000. See notes to financial statements. Equity Funds Annual Report -------------------------------------------------------------------------------- Schedules of Capital Stock Activity (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 118 Report
Mid Cap Diversified Large Cap Value Fund Mid Cap Fund Growth Fund ---------------------- ---------------------- ---------------------- Year Ended Year Ended Year Ended ---------------------- ---------------------- ---------------------- June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 --------- --------- --------- --------- --------- --------- Capital Transactions: Class I Shares: Proceeds from shares issued ........................ $ 303,417 $ 165,924 $ 268,687 $ 185,842 $ 709,759 $ 500,501 Dividends reinvested ............................... 82,847 10,255 39,535 165,352 -- 86,402 Cost of shares redeemed ............................ (235,334) (195,337) (244,022) (164,123) (626,636) (513,511) --------- --------- --------- --------- --------- --------- Change in net assets from Class I capital transactions ....................................... $ 150,930 $ (19,158) $ 64,200 $ 187,071 $ 83,123 $ 73,392 ========= ========= ========= ========= ========= ========= Class A Shares: Proceeds from shares issued ........................ $ 107,993 $ 61,361 $ 50,642 $ 80,630 $ 74,495 $ 149,189 Dividends reinvested ............................... 10,166 4,666 7,916 42,559 -- 20,304 Cost of shares redeemed ............................ (51,433) (52,615) (62,777) (131,857) (132,043) (174,343) --------- --------- --------- --------- --------- --------- Change in net assets from Class A capital transactions ....................................... $ 66,726 $ 13,412 $ (4,219) $ (8,668) $ (57,548) $ (4,850) ========= ========= ========= ========= ========= ========= Class B Shares: Proceeds from shares issued ........................ $ 29,202 $ 18,500 $ 6,649 $ 9,786 $ 29,730 $ 115,319 Dividends reinvested ............................... 4,631 1,666 588 3,595 -- 33,895 Cost of shares redeemed ............................ (12,025) (6,290) (2,758) (4,537) (95,571) (136,387) --------- --------- --------- --------- --------- --------- Change in net assets from Class B capital transactions ....................................... $ 21,808 $ 13,876 $ 4,479 $ 8,844 $ (65,841) $ 12,827 ========= ========= ========= ========= ========= ========= Class C Shares: Proceeds from shares issued ........................ $ 10,721 $ 2,614 $ 2,104 $ 1,910 $ 6,769 $ 18,671 Dividends reinvested ............................... 246 11 40 75 -- 2,005 Cost of shares redeemed ............................ (986) (192) (356) (187) (10,546) (17,913) --------- --------- --------- --------- --------- --------- Change in net assets from Class C capital transactions ....................................... $ 9,981 $ 2,433 $ 1,788 $ 1,798 $ (3,777) $ 2,763 ========= ========= ========= ========= ========= ========= Share Transactions: Class I Shares: Issued ............................................. 19,932 10,960 15,947 9,809 47,562 25,412 Reinvested ......................................... 5,414 714 2,326 8,654 -- 3,377 Redeemed ........................................... (15,120) (12,842) (14,427) (8,659) (42,847) (25,452) --------- --------- --------- --------- --------- --------- Change in Class I Shares ............................ 10,226 (1,168) 3,846 9,804 4,715 3,337 ========= ========= ========= ========= ========= ========= Class A Shares: Issued ............................................. 6,934 4,037 3,060 4,314 4,808 6,747 Reinvested ......................................... 662 327 471 2,248 -- 772 Redeemed ........................................... (3,391) (3,545) (3,838) (6,949) (8,633) (8,205) --------- --------- --------- --------- --------- --------- Change in Class A Shares ............................ 4,205 819 (307) (387) (3,825) (686) ========= ========= ========= ========= ========= ========= Class B Shares: Issued ............................................. 1,901 1,199 407 754 2,055 5,381 Reinvested ......................................... 306 119 36 716 -- 1,355 Redeemed ........................................... (781) (424) (166) (1,631) (6,730) (6,862) --------- --------- --------- --------- --------- --------- Change in Class B Shares ............................ 1,426 894 277 (161) (4,675) (126) ========= ========= ========= ========= ========= ========= Class C Shares: Issued ............................................. 700 168 128 189 471 858 Reinvested ......................................... 16 1 2 15 -- 81 Redeemed ........................................... (67) (13) (22) (116) (743) (920) --------- --------- --------- --------- --------- --------- Change in Class C Shares ............................ 649 156 108 88 (272) 19 ========= ========= ========= ========= ========= =========
See notes to financial statements. Equity Funds Annual Report -------------------------------------------------------------------------------- Schedules of Capital Stock Activity (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 119 Report
Large Cap Equity Diversified Value Fund Income Fund Equity Fund -------------------- --------------------- -------------------- Year Ended Year Ended Year Ended -------------------- --------------------- -------------------- June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 -------- -------- -------- --------- -------- -------- Capital Transactions: Class I Shares: Proceeds from shares issued ............................. $271,043 $209,401 $ 41,725 $ 44,133 $476,936 $352,482 Dividends reinvested .................................... 15,658 32,822 4,648 48,739 5,567 26,226 Cost of shares redeemed ................................. (357,078) (236,929) (87,321) (194,649) (344,336) (269,223) -------- -------- -------- --------- -------- -------- Change in net assets from Class I capital transactions ... $(70,377) $ 5,294 $(40,948) $(101,777) $138,167 $109,485 ======== ======== ======== ========= ======== ======== Class A Shares: Proceeds from shares issued ............................. $ 35,491 $ 53,410 $ 32,333 $ 16,693 $ 64,411 $ 64,190 Dividends reinvested .................................... 849 1,313 5,416 11,876 930 4,634 Cost of shares redeemed ................................. (60,461) (23,611) (19,779) (27,938) (58,572) (95,193) -------- -------- -------- --------- -------- -------- Change in net assets from Class A capital transactions ... $(24,121) $ 31,112 $ 17,970 $ 631 $ 6,769 $(26,369) ======== ======== ======== ========= ======== ======== Class B Shares: Proceeds from shares issued ............................. $ 6,817 $ 9,165 $ 12,040 $ 8,125 $ 10,446 $ 6,191 Dividends reinvested .................................... 325 643 7,232 16,641 137 883 Cost of shares redeemed ................................. (8,835) (5,361) (20,368) (28,099) (6,931) (8,870) -------- -------- -------- --------- -------- -------- Change in net assets from Class B capital transactions ... $ (1,693) $ 4,447 $ (1,096) $ (3,333) $ 3,652 $ (1,796) ======== ======== ======== ========= ======== ======== Class C Shares: Proceeds from shares issued ............................. $ 1,953 $ 2,027 $ 1,165 $ 454 $ 5,964 $ 9,202 Dividends reinvested .................................... 32 57 69 153 52 276 Cost of shares redeemed ................................. (1,234) (952) (477) (533) (6,005) (4,922) -------- -------- -------- --------- -------- -------- Change in net assets from Class C capital transactions ... $ 751 $ 1,132 $ 757 $ 74 $ 11 $ 4,556 ======== ======== ======== ========= ======== ======== Share Transactions: Class I Shares: Issued .................................................. 19,343 12,978 2,338 2,174 40,057 25,831 Reinvested .............................................. 1,035 2,031 259 2,384 451 1,718 Redeemed ................................................ (24,988) (14,542) (4,910) (9,438) (28,783) (19,039) -------- -------- -------- --------- -------- -------- Change in Class I Shares ................................. (4,610) 467 (2,313) (4,880) 11,725 8,510 ======== ======== ======== ========= ======== ======== Class A Shares: Issued .................................................. 2,473 3,230 1,795 820 5,387 4,589 Reinvested .............................................. 56 81 298 583 76 306 Redeemed ................................................ (4,216) (1,445) (1,122) (1,379) (4,962) (6,739) -------- -------- -------- --------- -------- -------- Change in Class A Shares ................................. (1,687) 1,866 971 24 501 (1,844) ======== ======== ======== ========= ======== ======== Class B Shares: Issued .................................................. 478 560 669 403 895 454 Reinvested .............................................. 21 39 398 816 11 59 Redeemed ................................................ (623) (327) (1,158) (1,377) (615) (650) -------- -------- -------- --------- -------- -------- Change in Class B Shares ................................. (124) 272 (91) (158) 291 (137) ======== ======== ======== ========= ======== ======== Class C Shares: Issued .................................................. 138 125 64 22 514 669 Reinvested .............................................. 2 3 4 8 4 18 Redeemed ................................................ (88) (58) (27) (27) (529) (362) -------- -------- -------- --------- -------- -------- Change in Class C Shares ................................. 52 70 41 3 (11) 325 ======== ======== ======== ========= ======== ========
See notes to financial statements. Equity Funds Annual Report -------------------------------------------------------------------------------- Schedules of Capital Stock Activity (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 120 Report
Balanced Equity Market Expansion Fund Index Fund Index Fund -------------------- ---------------------- -------------------- Year Ended Year Ended Year Ended -------------------- ---------------------- -------------------- June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 2002 2001 2002 2001 -------- -------- --------- --------- -------- -------- Capital Transactions: Class I Shares: Proceeds from shares issued ............................ $ 5,116 $ 26,770 $ 616,980 $ 462,602 $21,317 $ 11,849 Dividends reinvested ................................... 1,193 293 10,499 5,806 122 2,077 Cost of shares redeemed ................................ (22,242) (76,375) (336,713) (392,851) (9,951) (10,677) -------- -------- --------- --------- ------- -------- Change in net assets from Class I capital transactions... $(15,933) $(49,312) $ 290,766 $ 75,557 $11,488 $ 3,249 ======== ======== ========= ========= ======= ======== Class A Shares: Proceeds from shares issued ............................ $ 20,080 $ 32,792 $ 102,588 $ 197,259 $ 8,793 $ 2,153 Dividends reinvested ................................... 2,593 3,042 4,502 4,841 21 241 Cost of shares redeemed ................................ (25,895) (32,613) (263,820) (242,552) (1,252) (633) -------- -------- --------- --------- ------- -------- Change in net assets from Class A capital transactions... $ (3,222) $ 3,221 $(156,730) $ (40,452) $ 7,562 $ 1,761 ======== ======== ========= ========= ======= ======== Class B Shares: Proceeds from shares issued ............................ $ 21,575 $ 42,045 $ 36,257 $ 68,142 $ 6,515 $ 2,568 Dividends reinvested ................................... 3,704 4,595 272 -- 18 298 Cost of shares redeemed ................................ (46,455) (51,559) (74,384) (93,938) (765) (438) -------- -------- --------- --------- ------- -------- Change in net assets from Class B capital transactions... $(21,176) $ (4,919) $ (37,855) $ (25,796) $ 5,768 $ 2,428 ======== ======== ========= ========= ======= ======== Class C Shares: Proceeds from shares issued ............................ $ 2,241 $ 1,406 $ 38,095 $ 48,904 $ 5,864 $ 1,507 Dividends reinvested ................................... 25 19 71 -- 3 16 Cost of shares redeemed ................................ (623) (606) (29,745) (28,047) (334) (665) -------- -------- --------- --------- ------- -------- Change in net assets from Class C capital transactions... $ 1,643 $ 819 $ 8,421 $ 20,857 $ 5,533 $ 858 ======== ======== ========= ========= ======= ======== Share Transactions: Class I Shares: Issued ................................................. 405 1,931 24,100 14,967 2,474 1,385 Reinvested ............................................. 95 21 406 198 14 240 Redeemed ............................................... (1,752) (5,486) (13,224) (12,667) (1,143) (1,234) -------- -------- --------- --------- ------- -------- Change in Class I Shares ................................ (1,252) (3,534) 11,282 2,498 1,345 391 ======== ======== ========= ========= ======= ======== Class A Shares: Issued ................................................. 1,583 2,376 4,046 6,547 998 252 Reinvested ............................................. 205 222 174 158 2 28 Redeemed ............................................... (2,055) (2,379) (10,239) (7,850) (145) (76) -------- -------- --------- --------- ------- -------- Change in Class A Shares ................................ (267) 219 (6,019) (1,145) 855 204 ======== ======== ========= ========= ======= ======== Class B Shares: Issued ................................................. 1,703 3,045 1,426 2,203 745 295 Reinvested ............................................. 292 334 11 -- 2 34 Redeemed ............................................... (3,690) (3,765) (2,963) (3,116) (90) (51) -------- -------- --------- --------- ------- -------- Change in Class B Shares ................................ (1,695) (386) (1,526) (913) 657 278 ======== ======== ========= ========= ======= ======== Class C Shares: Issued ................................................. 178 102 1,491 1,598 685 177 Reinvested ............................................. 2 1 3 -- -- 2 Redeemed ............................................... (49) (44) (1,187) (936) (39) (78) -------- -------- --------- --------- ------- -------- Change in Class C Shares ................................ 131 59 307 662 646 101 ======== ======== ========= ========= ======= ========
See notes to financial statements. Equity Funds Annual Report -------------------------------------------------------------------------------- Schedules of Capital Stock Activity (Amounts in thousands) ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 121 Report
Technology Health Sciences International Equity Diversified Fund Fund Index Fund International Fund -------------------- ---------------------- ---------------------- ---------------------- Year July 28, Year July 28, Year Ended Year Ended Ended 2000 to Ended 2000 to ---------------------- ---------------------- June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2002 2001 (a) 2002 2001 (a) 2002 2001 2002 2001 -------- -------- -------- ---------- --------- --------- --------- --------- Capital Transactions: Class I Shares: Proceeds from shares issued ................... $ 3,856 $ 8,515 $ 403 $ 2,048 $ 230,713 $ 406,574 $ 242,855 $ 353,064 Dividends reinvested ....... -- -- 3 -- 1,249 2,257 2,921 2,485 Cost of shares redeemed .... (3,098) (4,052) (1,005) (1,135) (230,505) (353,562) (165,770) (162,640) ------- ------- ------- ------- --------- --------- --------- --------- Change in net assets from Class I capital transactions ............... $ 758 $ 4,463 $ (599) $ 913 $ 1,457 $ 55,269 $ 80,006 $ 192,909 ======= ======= ======= ======= ========= ========= ========= ========= Class A Shares: Proceeds from shares issued ................... $ 5,938 $60,911 $ 6,319 $ 4,816 $ 77,116 $ 157,558 $ 55,203 $ 109,306 Dividends reinvested ....... -- -- 17 -- 172 456 214 539 Cost of shares redeemed .... (7,816) (5,450) (1,506) (176) (73,474) (181,485) (58,422) (101,309) ------- ------- ------- ------- --------- --------- --------- --------- Change in net assets from Class A capital transactions ............... $(1,878) $55,461 $ 4,830 $ 4,640 $ 3,814 $ (23,471) $ (3,005) $ 8,536 ======= ======= ======= ======= ========= ========= ========= ========= Class B Shares: Proceeds from shares issued ................... $ 3,198 $16,080 $ 6,725 $ 3,045 $ 980 $ 4,513 $ 1,035 $ 5,896 Dividends reinvested ....... -- -- 12 -- 50 60 46 135 Cost of shares redeemed .... (1,691) (1,618) (1,399) (28) (2,957) (10,760) (2,720) (1,786) ------- ------- ------- ------- --------- --------- --------- --------- Change in net assets from Class B capital transactions ............... $ 1,507 $14,462 $ 5,338 $ 3,017 $ (1,927) $ (6,187) $ (1,639) $ 4,245 ======= ======= ======= ======= ========= ========= ========= ========= Class C Shares: Proceeds from shares issued ................... $ 391 $ 1,913 $ 365 $ 417 $ 3,041 $ 11,599 $ 179 $ 1,367 Dividends reinvested ....... -- -- 1 -- 29 45 3 5 Cost of shares redeemed .... (282) (139) (178) (1) (3,162) (9,838) (407) (1,001) ------- ------- ------- ------- --------- --------- --------- --------- Change in net assets from Class C capital transactions ............... $ 109 $ 1,774 $ 188 $ 416 $ (92) $ 1,806 $ (225) $ 371 ======= ======= ======= ======= ========= ========= ========= ========= Share Transactions: Class I Shares: Issued ..................... 778 1,192 36 192 16,201 22,003 20,181 23,396 Reinvested ................. -- -- -- -- 88 123 241 148 Redeemed ................... (667) (598) (97) (100) (16,020) (19,134) (13,590) (10,777) ------- ------- ------- ------- --------- --------- --------- --------- Change in Class I Shares .... 111 594 (61) 92 269 2,992 6,832 12,767 ======= ======= ======= ======= ========= ========= ========= ========= Class A Shares: Issued ..................... 1,251 6,402 588 444 5,421 8,549 4,675 7,379 Reinvested ................. -- -- 1 -- 12 25 18 32 Redeemed ................... (1,679) (743) (146) (15) (5,099) (9,846) (4,863) (6,742) ------- ------- ------- ------- --------- --------- --------- --------- Change in Class A Shares .... (428) 5,659 443 429 334 (1,272) (170) 669 ======= ======= ======= ======= ========= ========= ========= ========= Class B Shares: Issued ..................... 678 1,847 620 274 71 251 94 444 Reinvested ................. -- -- 1 -- 4 4 4 9 Redeemed ................... (366) (255) (134) (3) (217) (621) (243) (131) ------- ------- ------- ------- --------- --------- --------- --------- Change in Class B Shares .... 312 1,592 487 271 (142) (366) (145) 322 ======= ======= ======= ======= ========= ========= ========= ========= Class C Shares: Issued ..................... 78 215 34 39 214 645 16 106 Reinvested ................. -- -- -- -- 2 3 -- -- Redeemed ................... (63) (20) (18) --(b) (226) (559) (36) (80) ------- ------- ------- ------- --------- --------- --------- --------- Change in Class C Shares .... 15 195 16 39 (10) 89 (20) 26 ======= ======= ======= ======= ========= ========= ========= =========
------------ (a) Period from commencement of operations. (b) Amount is less than 1,000. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 122 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Net Asset Net and Unrealized Value, Investment Gains Total from Net Beginning Income (Losses) from Investment Investment of Period (Loss) Investments Activities Income --------- ---------- -------------- ---------- ------------- Small Cap Growth Fund (Class I) Year Ended June 30, 2002............... $10.47 $(0.05) $(1.19) $(1.24) $ -- Year Ended June 30, 2001............... 12.97 (0.06) (1.05) (1.11) -- Year Ended June 30, 2000............... 10.62 (0.03) 3.26 3.23 -- Year Ended June 30, 1999............... 12.05 -- (0.24) (0.24) -- Year Ended June 30, 1998............... 10.94 -- 2.44 2.44 -- Small Cap Value Fund (Class I) Year Ended June 30, 2002............... 19.53 0.14 2.78 2.92 (0.14) Year Ended June 30, 2001............... 13.74 0.22 5.79 6.01 (0.22) Year Ended June 30, 2000............... 14.26 0.13 (0.53) (0.40) (0.12) Six Months Ended June 30, 1999 (b)..... 15.02 (0.02) (0.66) (0.68) -- Year Ended December 31, 1998........... 16.22 (0.07) (0.60) (0.67) -- Year Ended December 31, 1997........... 13.80 (0.05) 4.24 4.19 -- Mid Cap Growth Fund (Class I) Year Ended June 30, 2002............... 22.13 (0.11) (3.25) (3.36) -- Year Ended June 30, 2001............... 29.73 (0.15) (3.13) (3.28) -- Year Ended June 30, 2000............... 25.32 (0.10) 8.59 8.49 -- Year Ended June 30, 1999............... 22.51 (0.07) 5.58 5.51 -- Year Ended June 30, 1998............... 19.46 (0.07) 5.70 5.63 -- Mid Cap Value (Class I) Year Ended June 30, 2002............... 16.74 0.08 (0.05) 0.03 (0.08) Year Ended June 30, 2001............... 13.44 0.12 3.98 4.10 (0.12) Year Ended June 30, 2000............... 14.88 0.12 (0.14) (0.02) (0.12) Year Ended June 30, 1999............... 16.90 0.13 0.24 0.37 (0.13) Year Ended June 30, 1998............... 15.65 0.14 3.99 4.13 (0.14) Diversified Mid Cap Fund (Class I) Year Ended June 30, 2002............... 18.46 0.03 (1.53) (1.50) (0.02) Year Ended June 30, 2001............... 21.69 0.02 1.33 1.35 (0.03) Year Ended June 30, 2000............... 22.10 0.06 2.59 2.65 (0.05) Six Months Ended June 30, 1999 (e)..... 20.46 (0.01) 1.70 1.69 -- Year Ended December 31, 1998........... 20.93 (0.01) 0.93 0.92 -- Year Ended December 31, 1997........... 17.61 0.01 4.88 4.89 (0.01) Large Cap Growth Fund (Class I) Year Ended June 30, 2002............... 17.12 (0.02) (4.77) (4.79) -- Year Ended June 30, 2001............... 26.68 (0.08) (8.58) (8.66) -- Year Ended June 30, 2000............... 26.15 (0.03) 3.90 3.87 -- Year Ended June 30, 1999............... 22.71 -- 5.80 5.80 -- Year Ended June 30, 1998............... 19.44 0.04 6.13 6.17 (0.02) Large Cap Value Fund (Class I) Year Ended June 30, 2002............... 16.16 0.09 (3.22) (3.13) (0.09) Year Ended June 30, 2001............... 15.50 0.11 1.05 1.16 (0.11) Year Ended June 30, 2000............... 18.09 0.13 (1.10) (0.97) (0.13) Year Ended June 30, 1999............... 16.70 0.18 2.44 2.62 (0.18) Year Ended June 30, 1998............... 14.79 0.21 2.84 3.05 (0.21) Equity Income Fund (Class I) Year Ended June 30, 2002............... 19.42 0.25 (2.01) (1.76) (0.24) Year Ended June 30, 2001............... 21.25 0.26 0.68 0.94 (0.25) Year Ended June 30, 2000............... 24.50 0.33 (2.32) (1.99) (0.32) Year Ended June 30, 1999............... 24.07 0.31 2.11 2.42 (0.31) Year Ended June 30, 1998............... 21.93 0.32 4.36 4.68 (0.31) Diversified Equity Fund (Class I) Year Ended June 30, 2002............... 12.95 0.05 (2.45) (2.40) (0.05) Year Ended June 30, 2001............... 15.05 0.03 (1.86) (1.83) (0.03) Year Ended June 30, 2000............... 15.19 0.03 0.72 0.75 (0.02) Year Ended June 30, 1999............... 13.51 0.05 2.52 2.57 (0.05) Year Ended June 30, 1998............... 11.51 0.08 3.36 3.44 (0.08)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Small Cap Opportunity Fund became the Small Cap Value Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Small Cap Opportunity Fund. (c) Not annualized. (d) Annualized. (e) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Mid Cap Opportunity Fund became the Diversified Mid Cap Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Mid Cap Opportunity Fund. (f) The Portfolio Turnover was adjusted for Redemptions In-Kind for shareholders that took place during 1997. The Fund's securities sales were appropriately reduced by the fair market value of the Redemptions In-Kind. The Redemptions In-Kind for the Fund was approximately $4 million. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 123 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ -------------------------------------- Net Ratio of Net Net Asset Assets, Ratio of Investment Net Value, End Expenses Income Realized Total End Total of Period to Average to Average Gains Distributions of Period Return (000's) Net Assets Net Assets -------- ------------- --------- ------ ---------- ---------- ------------ Small Cap Growth Fund (Class I) Year Ended June 30, 2002.............. $ -- $ -- $ 9.23 (11.84)% $376,910 1.05% (0.65)% Year Ended June 30, 2001.............. (1.39) (1.39) 10.47 (9.00) 274,544 1.04 (0.59) Year Ended June 30, 2000.............. (0.88) (0.88) 12.97 32.26 253,626 1.05 (0.23) Year Ended June 30, 1999.............. (1.19) (1.19) 10.62 (0.72) 130,974 1.06 0.00 Year Ended June 30, 1998.............. (1.33) (1.33) 12.05 23.58 114,951 1.06 (0.05) Small Cap Value Fund (Class I) Year Ended June 30, 2002.............. (1.12) (1.26) 21.19 15.76 629,011 0.99 0.73 Year Ended June 30, 2001.............. -- (0.22) 19.53 43.98 321,689 0.96 1.33 Year Ended June 30, 2000.............. -- (0.12) 13.74 (2.78) 179,923 0.93 0.83 Six Months Ended June 30, 1999 (b).... (0.08) (0.08) 14.26 (4.48)(c) 246,712 0.94(d) (0.35)(d) Year Ended December 31, 1998.......... (0.53) (0.53) 15.02 (4.11) 276,754 0.94 (0.48) Year Ended December 31, 1997.......... (1.77) (1.77) 16.22 30.60 217,908 0.93 (0.43) Mid Cap Growth Fund (Class I) Year Ended June 30, 2002.............. (0.07) (0.07) 18.70 (15.20) 1,313,208 0.99 (0.57) Year Ended June 30, 2001.............. (4.32) (4.32) 22.13 (13.54) 1,418,647 0.99 (0.60) Year Ended June 30, 2000.............. (4.08) (4.08) 29.73 36.65 1,624,824 0.99 (0.38) Year Ended June 30, 1999.............. (2.70) (2.70) 25.32 28.39 1,164,884 0.99 (0.35) Year Ended June 30, 1998.............. (2.58) (2.58) 22.51 31.11 868,901 1.00 (0.36) Mid Cap Value (Class I) Year Ended June 30, 2002.............. (1.36) (1.44) 15.33 0.24 1,237,701 0.97 0.57 Year Ended June 30, 2001.............. (0.68) (0.80) 16.74 31.55 1,180,092 0.96 0.77 Year Ended June 30, 2000.............. (1.30) (1.42) 13.44 0.38 963,410 0.97 0.93 Year Ended June 30, 1999.............. (2.26) (2.39) 14.88 3.82 1,057,827 0.95 0.94 Year Ended June 30, 1998.............. (2.74) (2.88) 16.90 28.20 634,672 0.96 0.85 Diversified Mid Cap Fund (Class I) Year Ended June 30, 2002.............. (0.88) (0.90) 16.06 (8.35) 835,901 0.97 0.15 Year Ended June 30, 2001.............. (4.55) (4.58) 18.46 6.13 890,096 0.93 0.19 Year Ended June 30, 2000.............. (3.01) (3.06) 21.69 14.03 832,959 0.86 0.24 Six Months Ended June 30, 1999 (e).... (0.05) (0.05) 22.10 8.32(c) 987,059 0.90(d) (0.09)(d) Year Ended December 31, 1998.......... (1.39) (1.39) 20.46 4.61 987,256 0.90 (0.08) Year Ended December 31, 1997.......... (1.56) (1.57) 20.93 27.91 803,670 0.84 0.05 Large Cap Growth Fund (Class I) Year Ended June 30, 2002.............. -- -- 12.33 (27.98) 1,540,526 0.97 (0.13) Year Ended June 30, 2001.............. (0.90) (0.90) 17.12 (33.56) 2,059,004 0.93 (0.38) Year Ended June 30, 2000.............. (3.34) (3.34) 26.68 15.30 3,118,107 0.94 0.12 Year Ended June 30, 1999.............. (2.36) (2.36) 26.15 28.78 3,052,729 0.96 0.07 Year Ended June 30, 1998.............. (2.88) (2.90) 22.71 35.75 1,510,521 0.99 0.21 Large Cap Value Fund (Class I) Year Ended June 30, 2002.............. (0.17) (0.26) 12.77 (19.53) 1,161,684 0.98 0.67 Year Ended June 30, 2001.............. (0.39) (0.50) 16.16 7.54 1,544,504 0.96 0.69 Year Ended June 30, 2000.............. (1.49) (1.62) 15.50 (5.64) 1,474,666 0.96 0.82 Year Ended June 30, 1999.............. (1.05) (1.23) 18.09 17.26 1,095,686 0.95 1.15 Year Ended June 30, 1998.............. (0.93) (1.14) 16.70 21.46 792,649 0.95 1.34 Equity Income Fund (Class I) Year Ended June 30, 2002.............. (1.06) (1.30) 16.36 (9.64) 332,490 0.99 1.39 Year Ended June 30, 2001.............. (2.52) (2.77) 19.42 4.26 439,755 0.98 1.25 Year Ended June 30, 2000.............. (0.94) (1.26) 21.25 (8.34) 584,810 0.91 1.44 Year Ended June 30, 1999.............. (1.68) (1.99) 24.50 11.29 1,120,181 0.91 1.40 Year Ended June 30, 1998.............. (2.23) (2.54) 24.07 23.18 691,878 1.00 1.39 Diversified Equity Fund (Class I) Year Ended June 30, 2002.............. (0.04) (0.09) 10.46 (18.61) 1,528,790 0.98 0.46 Year Ended June 30, 2001.............. (0.24) (0.27) 12.95 (12.37) 1,742,023 0.95 0.26 Year Ended June 30, 2000.............. (0.87) (0.89) 15.05 5.23 1,895,968 0.95 0.20 Year Ended June 30, 1999.............. (0.84) (0.89) 15.19 20.72 2,089,940 0.95 0.42 Year Ended June 30, 1998.............. (1.36) (1.44) 13.51 32.26 630,340 0.98 0.66 Ratios/Supplementary Data -------------------------- Ratio of Expenses to Average Portfolio Net Assets* Turnover (a) ----------- ------------ Small Cap Growth Fund (Class I) Year Ended June 30, 2002.............. 1.06% 119.33% Year Ended June 30, 2001.............. 1.05 157.71 Year Ended June 30, 2000.............. 1.06 163.03 Year Ended June 30, 1999.............. 1.09 127.83 Year Ended June 30, 1998.............. 1.09 83.77 Small Cap Value Fund (Class I) Year Ended June 30, 2002.............. 1.01 39.91 Year Ended June 30, 2001.............. 0.99 74.81 Year Ended June 30, 2000.............. 1.05 146.46 Six Months Ended June 30, 1999 (b).... 1.03(d) 50.90 Year Ended December 31, 1998.......... 0.94 42.39 Year Ended December 31, 1997.......... 0.93 58.29 Mid Cap Growth Fund (Class I) Year Ended June 30, 2002.............. 1.07 83.02 Year Ended June 30, 2001.............. 1.02 127.02 Year Ended June 30, 2000.............. 0.99 181.78 Year Ended June 30, 1999.............. 0.99 141.46 Year Ended June 30, 1998.............. 1.00 158.43 Mid Cap Value (Class I) Year Ended June 30, 2002.............. 0.98 101.29 Year Ended June 30, 2001.............. 0.97 127.06 Year Ended June 30, 2000.............. 0.99 110.43 Year Ended June 30, 1999.............. 0.96 115.65 Year Ended June 30, 1998.............. 0.96 106.41 Diversified Mid Cap Fund (Class I) Year Ended June 30, 2002.............. 0.99 37.08 Year Ended June 30, 2001.............. 0.97 59.45 Year Ended June 30, 2000.............. 1.00 70.01 Six Months Ended June 30, 1999 (e).... 0.97(d) 23.53 Year Ended December 31, 1998.......... 0.90 26.89 Year Ended December 31, 1997.......... 0.84 37.54(f) Large Cap Growth Fund (Class I) Year Ended June 30, 2002.............. 1.07 69.07 Year Ended June 30, 2001.............. 1.00 73.36 Year Ended June 30, 2000.............. 0.94 123.21 Year Ended June 30, 1999.............. 0.96 86.34 Year Ended June 30, 1998.............. 0.99 117.34 Large Cap Value Fund (Class I) Year Ended June 30, 2002.............. 0.99 125.65 Year Ended June 30, 2001.............. 0.96 127.66 Year Ended June 30, 2000.............. 0.96 131.95 Year Ended June 30, 1999.............. 0.95 40.69 Year Ended June 30, 1998.............. 0.95 47.35 Equity Income Fund (Class I) Year Ended June 30, 2002.............. 1.01 17.03 Year Ended June 30, 2001.............. 1.00 13.44 Year Ended June 30, 2000.............. 1.01 15.82 Year Ended June 30, 1999.............. 0.98 16.22 Year Ended June 30, 1998.............. 1.00 14.64 Diversified Equity Fund (Class I) Year Ended June 30, 2002.............. 0.99 14.29 Year Ended June 30, 2001.............. 0.96 21.92 Year Ended June 30, 2000.............. 0.95 37.98 Year Ended June 30, 1999.............. 0.95 50.82 Year Ended June 30, 1998.............. 0.98 62.37
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 124 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Capital Net Asset Net and Unrealized Contributions Value, Investment Gains from Total from Net Beginning Income (Losses) from Investment Investment Investment of Period (Loss) Investments Advisor Activities Income --------- ---------- -------------- ------------- ---------- ------------- Balanced Fund (Class I) Year Ended June 30, 2002 ............ $13.14 $0.32 $(1.49) $ -- $(1.17) $(0.32) Year Ended June 30, 2001 ............ 13.99 0.36 (0.86) -- (0.50) (0.35) Year Ended June 30, 2000 ............ 14.13 0.40 0.38 -- 0.78 (0.39) Year Ended June 30, 1999 ............ 13.80 0.34 1.28 -- 1.62 (0.34) Year Ended June 30, 1998 ............ 12.98 0.40 2.24 -- 2.64 (0.39) Equity Index Fund (Class I) Year Ended June 30, 2002 ............ 27.96 0.28 (5.36) -- (5.08) (0.28) Year Ended June 30, 2001 ............ 33.21 0.27 (5.26) -- (4.99) (0.26) Year Ended June 30, 2000 ............ 31.79 0.31 1.86 -- 2.17 (0.30) Year Ended June 30, 1999 ............ 27.16 0.31 5.54 -- 5.85 (0.30) Year Ended June 30, 1998 ............ 21.80 0.33 5.98 -- 6.31 (0.32) Market Expansion Index Fund (Class I) Year Ended June 30, 2002 ............ 8.82 0.04 (0.19) -- (0.15) (0.03) Year Ended June 30, 2001 ............ 9.07 0.06 0.70 -- 0.76 (0.05) Year Ended June 30, 2000 ............ 10.63 0.07 1.15 0.02 1.24 (0.07) Six Months Ended June 30, 1999 (b) .. 10.52 0.03 0.40 -- 0.43 (0.03) July 31, 1998 to December 31, 1998 (e) ............................ 10.00 0.03 0.93 -- 0.96 (0.03) Technology Fund (Class I) Year Ended June 30, 2002 ............ 5.91 (0.05) (2.28) -- (2.33) -- July 28, 2000 to June 30, 2001 (e) .. 10.00 (0.04) (4.05) -- (4.09) -- Health Sciences Fund (Class I) Year Ended June 30, 2002 ............ 11.71 (0.19) (2.60) -- (2.79) -- March 23, 2001 to June 30, 2001 (e) ............................ 10.00 (0.02) 1.73 -- 1.71 -- International Equity Index Fund (Class I) Year Ended June 30, 2002 ............ 16.08 0.13 (1.99) -- (1.86) (0.12) Year Ended June 30, 2001 ............ 21.65 0.22 (5.55) -- (5.33) (0.19) Year Ended June 30, 2000 ............ 18.63 0.14 3.22 -- 3.36 (0.05) Year Ended June 30, 1999 ............ 17.97 0.19 1.71 -- 1.90 (0.39) Year Ended June 30, 1998 ............ 16.89 0.21 1.32 -- 1.53 (0.02) Diversified International Fund (Class I) Year Ended June 30, 2002 ............ 13.14 (0.02) (1.13) -- (1.15) (0.12) Year Ended June 30, 2001 ............ 17.97 0.16 (4.60) -- (4.44) (0.09) Year Ended June 30, 2000 ............ 15.13 0.11 3.06 -- 3.17 (0.15) Six Months Ended June 30, 1999 (f) .. 13.93 0.11 1.09 -- 1.20 -- Year Ended December 31, 1998 ........ 12.14 0.14 1.85 -- 1.99 (0.15) Year Ended December 31, 1997 ........ 11.79 0.10 0.37 -- 0.47 (0.12)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Market Expansion Index Fund became the Market Expansion Index Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Market Expansion Index Fund. (c) Not annualized. (d) Annualized. (e) Period from commencement of operations. (f) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus International Equity Fund became the Diversified International Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus International Equity Fund. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 125 Report --------------------------------------------------------------------------------
Distributions ------------------------ Net Asset Net Value, Net Assets, Realized Total End of Total End of Gains Distributions Period Return Period (000's) -------- ------------- --------- ------------- -------------- Balanced Fund (Class I) Year Ended June 30, 2002.................. $ -- $(0.32) $11.65 (9.05)% $ 60,442 Year Ended June 30, 2001.................. -- (0.35) 13.14 (3.61) 84,588 Year Ended June 30, 2000.................. (0.53) (0.92) 13.99 5.74 139,496 Year Ended June 30, 1999.................. (0.95) (1.29) 14.13 12.74 229,008 Year Ended June 30, 1998.................. (1.43) (1.82) 13.80 22.12 105,243 Equity Index Fund (Class I) Year Ended June 30, 2002.................. -- (0.28) 22.60 (18.24) 1,663,601 Year Ended June 30, 2001.................. -- (0.26) 27.96 (15.05) 1,742,852 Year Ended June 30, 2000.................. (0.45) (0.75) 33.21 6.86 1,987,505 Year Ended June 30, 1999.................. (0.92) (1.22) 31.79 22.50 1,855,947 Year Ended June 30, 1998.................. (0.63) (0.95) 27.16 29.73 671,422 Market Expansion Index Fund (Class I) Year Ended June 30, 2002.................. (0.04) (0.07) 8.60 (1.78) 42,115 Year Ended June 30, 2001.................. (0.96) (1.01) 8.82 8.84 31,337 Year Ended June 30, 2000.................. (2.73) (2.80) 9.07 14.30 28,699 Six Months Ended June 30, 1999 (b)........ (0.29) (0.32) 10.63 4.54(c) 28,871 July 31, 1998 to December 31, 1998 (e).... (0.41) (0.44) 10.52 9.91(c) 27,483 Technology Fund (Class I) Year Ended June 30, 2002.................. -- -- 3.58 (39.42) 2,524 July 28, 2000 to June 30, 2001 (e)........ -- -- 5.91 40.90(c) 3,509 Health Sciences Fund (Class I) Year Ended June 30, 2002.................. (0.04) (0.04) 8.88 (23.92) 276 March 23, 2001 to June 30, 2001(e)........ -- -- 11.71 17.10(c) 1,080 International Equity Index Fund (Class I) Year Ended June 30, 2002.................. -- (0.12) 14.10 (11.55) 564,207 Year Ended June 30, 2001.................. (0.05) (0.24) 16.08 (24.77) 639,028 Year Ended June 30, 2000.................. (0.29) (0.34) 21.65 18.09 795,657 Year Ended June 30, 1999.................. (0.85) (1.24) 18.63 11.27 657,902 Year Ended June 30, 1998.................. (0.43) (0.45) 17.97 9.54 586,741 Diversified International Fund (Class I) Year Ended June 30, 2002.................. -- (0.12) 11.87 (8.75) 795,180 Year Ended June 30, 2001.................. (0.30) (0.39) 13.14 (25.13) 790,431 Year Ended June 30, 2000.................. (0.18) (0.33) 17.97 20.97 851,758 Six Months Ended June 30, 1999 (f)........ -- -- 15.13 8.61(c) 599,310 Year Ended December 31, 1998.............. (0.05) (0.20) 13.93 16.43 569,522 Year Ended December 31, 1997.............. -- (0.12) 12.14 3.98 487,986 Ratios/Supplementary Data ------------------------------------------------------- Ratio of Net Ratio of Investment Ratio of Expenses to Income to Expenses to Average Average Average Portfolio Net Assets Net Assets Net Assets* Turnover (a) ----------- ------------ ----------- ------------ Balanced Fund (Class I) Year Ended June 30, 2002.................. 0.89% 2.52% 1.04% 24.92% Year Ended June 30, 2001.................. 0.89 2.56 1.01 37.61 Year Ended June 30, 2000.................. 0.88 2.81 0.98 57.08 Year Ended June 30, 1999.................. 0.85 2.59 0.95 85.81 Year Ended June 30, 1998.................. 0.85 3.03 1.03 46.04 Equity Index Fund (Class I) Year Ended June 30, 2002.................. 0.35 1.10 0.60 6.68 Year Ended June 30, 2001.................. 0.35 0.89 0.58 9.72 Year Ended June 30, 2000.................. 0.35 0.95 0.57 7.89 Year Ended June 30, 1999.................. 0.35 1.14 0.57 5.37 Year Ended June 30, 1998.................. 0.35 1.37 0.62 4.32 Market Expansion Index Fund (Class I) Year Ended June 30, 2002.................. 0.57 0.44 0.90 73.63 Year Ended June 30, 2001.................. 0.57 0.61 0.85 36.68 Year Ended June 30, 2000.................. 0.57 0.72 0.95 64.29 Six Months Ended June 30, 1999 (b)........ 0.57(d) 0.68(d) 0.97(d) 36.50 July 31, 1998 to December 31, 1998 (e).... 0.56(d) 0.75(d) 1.12(d) 20.18 Technology Fund (Class I) Year Ended June 30, 2002.................. 1.30 (1.03) 2.20 33.74 July 28, 2000 to June 30, 2001 (e)........ 1.30(d) (0.98)(d) 2.14(d) 76.53 Health Sciences Fund (Class I) Year Ended June 30, 2002.................. 1.35 (0.61) 2.37 67.68 March 23, 2001 to June 30, 2001(e)........ 1.35(d) (0.51)(d) 5.10(d) 2.34 International Equity Index Fund (Class I) Year Ended June 30, 2002.................. 0.87 0.79 0.87 13.60 Year Ended June 30, 2001.................. 0.83 1.21 0.85 6.75 Year Ended June 30, 2000.................. 0.86 0.66 0.86 13.85 Year Ended June 30, 1999.................. 0.85 1.03 0.85 33.99 Year Ended June 30, 1998.................. 0.88 1.29 0.88 9.90 Diversified International Fund (Class I) Year Ended June 30, 2002.................. 1.05 0.73 1.11 266.10 Year Ended June 30, 2001.................. 1.05 1.18 1.07 29.92 Year Ended June 30, 2000.................. 1.05 0.62 1.08 17.05 Six Months Ended June 30, 1999 (f)........ 1.06(d) 1.59(d) 1.09(d) 2.96 Year Ended December 31, 1998.............. 1.09 1.04 1.09 8.50 Year Ended December 31, 1997.............. 1.10 1.05 1.10 3.56
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 126 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Net Asset Net and Unrealized Value, Investment Gains Total from Net Beginning Income (Losses) from Investment Investment of Period (Loss) Investments Activities Income --------- ---------- -------------- ---------- ------------- Small Cap Growth Fund (Class A) Year Ended June 30, 2002............... $10.39 $(0.08) $(1.17) $(1.25) $ -- Year Ended June 30, 2001............... 12.91 (0.10) (1.03) (1.13) -- Year Ended June 30, 2000............... 10.61 (0.01) 3.19 3.18 -- Year Ended June 30, 1999............... 12.02 (0.02) (0.20) (0.22) -- Year Ended June 30, 1998............... 10.94 (0.03) 2.44 2.41 -- Small Cap Value Fund (Class A) Year Ended June 30, 2002............... 19.20 0.09 2.73 2.82 (0.09) Year Ended June 30, 2001............... 13.52 0.22 5.64 5.86 (0.18) Year Ended June 30, 2000............... 14.04 0.03 (0.45) (0.42) (0.10) Six Months Ended June 30, 1999 (b)..... 14.81 (0.05) (0.64) (0.69) -- Year Ended December 31, 1998........... 16.03 (0.10) (0.59) (0.69) -- Year Ended December 31, 1997........... 13.70 (0.06) 4.16 4.10 -- Mid Cap Growth Fund (Class A) Year Ended June 30, 2002............... 21.64 (0.14) (3.19) (3.33) -- Year Ended June 30, 2001............... 29.23 (0.19) (3.08) (3.27) -- Year Ended June 30, 2000............... 25.02 (0.11) 8.40 8.29 -- Year Ended June 30, 1999............... 22.36 (0.10) 5.46 5.36 -- Year Ended June 30, 1998............... 19.37 (0.08) 5.65 5.57 -- Mid Cap Value (Class A) Year Ended June 30, 2002............... 16.80 0.05 (0.05) -- (0.05) Year Ended June 30, 2001............... 13.48 0.08 4.00 4.08 (0.08) Year Ended June 30, 2000............... 14.93 0.09 (0.15) (0.06) (0.09) Year Ended June 30, 1999............... 16.93 0.09 0.26 0.35 (0.09) Year Ended June 30, 1998............... 15.68 0.10 3.99 4.09 (0.10) Year Ended June 30, 1997............... 14.72 0.19 2.57 2.76 (0.19) Diversified Mid Cap Fund (Class A) Year Ended June 30, 2002............... 18.25 (0.02) (1.51) (1.53) -- Year Ended June 30, 2001............... 21.50 (0.01) 1.31 1.30 --(e) Year Ended June 30, 2000............... 21.96 (0.01) 2.58 2.57 (0.02) Six Months Ended June 30, 1999 (f)..... 20.35 (0.04) 1.70 1.66 -- Year Ended December 31, 1998........... 20.89 (0.07) 0.92 0.85 -- Year Ended December 31, 1997........... 17.61 (0.03) 4.87 4.84 -- Large Cap Growth Fund (Class A) Year Ended June 30, 2002............... 17.57 (0.06) (4.89) (4.95) -- Year Ended June 30, 2001............... 27.42 (0.14) (8.81) (8.95) -- Year Ended June 30, 2000............... 26.86 (0.07) 3.97 3.90 -- Year Ended June 30, 1999............... 23.32 (0.07) 5.97 5.90 -- Year Ended June 30, 1998............... 19.92 (0.01) 6.30 6.29 (0.01) Large Cap Value Fund (Class A) Year Ended June 30, 2002............... 16.28 0.06 (3.25) (3.19) (0.05) Year Ended June 30, 2001............... 15.61 0.07 1.07 1.14 (0.08) Year Ended June 30, 2000............... 18.24 0.09 (1.14) (1.05) (0.09) Year Ended June 30, 1999............... 16.77 0.14 2.52 2.66 (0.14) Year Ended June 30, 1998............... 14.85 0.18 2.84 3.02 (0.17) Equity Income Fund (Class A) Year Ended June 30, 2002............... 19.36 0.20 (2.00) (1.80) (0.20) Year Ended June 30, 2001............... 21.19 0.20 0.69 0.89 (0.20) Year Ended June 30, 2000............... 24.45 0.25 (2.31) (2.06) (0.26) Year Ended June 30, 1999............... 24.04 0.27 2.08 2.35 (0.26) Year Ended June 30, 1998............... 21.90 0.25 4.37 4.62 (0.25)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Small Cap Opportunity Fund became the Small Cap Value Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Small Cap Opportunity Fund. (c) Not annualized. (d) Annualized. (e) Amount is less than $0.01. (f) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Mid Cap Opportunity Fund became the Diversified Mid Cap Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Mid Cap Opportunity Fund. (g) The Portfolio Turnover was adjusted for Redemptions In-Kind for shareholders that took place during 1997. The Fund's securities sales were appropriately reduced by the fair market value of the Redemptions In-Kind. The Redemptions In-Kind for the Fund was approximately $4 million. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 127 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ --------------------------------------- Ratio of Net Net Asset Net Assets, Ratio of Investment Net Value, End Expenses Income Realized Total End Total of Period to Average to Average Gains Distributions of Period Return (000's) Net Assets Net Assets -------- ------------- --------- ------ ----------- ---------- ------------ Small Cap Growth Fund (Class A) Year Ended June 30, 2002.............. $ -- $ -- $ 9.14 (12.03)% $52,918 1.30% (0.90)% Year Ended June 30, 2001.............. (1.39) (1.39) 10.39 (9.21) 56,221 1.29 (0.83) Year Ended June 30, 2000.............. (0.88) (0.88) 12.91 31.79 71,858 1.30 (0.48) Year Ended June 30, 1999.............. (1.19) (1.19) 10.61 (0.53) 22,081 1.31 (0.24) Year Ended June 30, 1998.............. (1.33) (1.33) 12.02 23.28 21,634 1.31 (0.31) Small Cap Value Fund (Class A) Year Ended June 30, 2002.............. (1.12) (1.21) 20.81 15.50 96,595 1.23 0.48 Year Ended June 30, 2001.............. -- (0.18) 19.20 43.55 40,634 1.21 1.07 Year Ended June 30, 2000.............. -- (0.10) 13.52 (2.94) 14,725 1.18 0.60 Six Months Ended June 30, 1999 (b).... (0.08) (0.08) 14.04 (4.61)(c) 26,592 1.17(d) (0.58)(d) Year Ended December 31, 1998.......... (0.53) (0.53) 14.81 (4.29) 32,217 1.19 (0.73) Year Ended December 31, 1997.......... (1.77) (1.77) 16.03 30.16 21,836 1.18 (0.68) Mid Cap Growth Fund (Class A) Year Ended June 30, 2002.............. (0.07) (0.07) 18.24 (15.41) 336,995 1.24 (0.82) Year Ended June 30, 2001.............. (4.32) (4.32) 21.64 (13.77) 338,797 1.24 (0.85) Year Ended June 30, 2000.............. (4.08) (4.08) 29.23 36.25 343,284 1.24 (0.64) Year Ended June 30, 1999.............. (2.70) (2.70) 25.02 27.87 159,292 1.24 (0.60) Year Ended June 30, 1998.............. (2.58) (2.58) 22.36 30.95 95,647 1.25 (0.60) Mid Cap Value (Class A) Year Ended June 30, 2002.............. (1.36) (1.41) 15.39 0.00 178,569 1.22 0.32 Year Ended June 30, 2001.............. (0.68) (0.76) 16.80 31.30 124,248 1.21 0.51 Year Ended June 30, 2000.............. (1.30) (1.39) 13.48 0.05 88,721 1.22 0.67 Year Ended June 30, 1999.............. (2.26) (2.35) 14.93 3.70 122,392 1.21 0.28 Year Ended June 30, 1998.............. (2.74) (2.84) 16.93 27.90 29,443 1.21 0.60 Year Ended June 30, 1997.............. (1.61) (1.80) 15.68 20.21 23,909 1.23 1.26 Diversified Mid Cap Fund (Class A) Year Ended June 30, 2002.............. (0.88) (0.88) 15.84 (8.62) 149,373 1.22 (0.10) Year Ended June 30, 2001.............. (4.55) (4.55) 18.25 5.91 177,665 1.18 (0.06) Year Ended June 30, 2000.............. (3.01) (3.03) 21.50 13.74 217,623 1.11 (0.01) Six Months Ended June 30, 1999 (f).... (0.05) (0.05) 21.96 8.21(c) 242,528 1.10(d) (0.30)(d) Year Ended December 31, 1998.......... (1.39) (1.39) 20.35 4.30 278,279 1.15 (0.33) Year Ended December 31, 1997.......... (1.56) (1.56) 20.89 27.56 234,020 1.09 (0.20) Large Cap Growth Fund (Class A) Year Ended June 30, 2002.............. -- -- 12.62 (28.17) 247,732 1.22 (0.37) Year Ended June 30, 2001.............. (0.90) (0.90) 17.57 (33.72) 412,205 1.18 (0.63) Year Ended June 30, 2000.............. (3.34) (3.34) 27.42 14.99 662,088 1.19 (0.38) Year Ended June 30, 1999.............. (2.36) (2.36) 26.86 28.43 447,209 1.21 (0.43) Year Ended June 30, 1998.............. (2.88) (2.89) 23.32 35.43 199,052 1.24 (0.04) Large Cap Value Fund (Class A) Year Ended June 30, 2002.............. (0.17) (0.22) 12.87 (19.74) 39,546 1.23 0.43 Year Ended June 30, 2001.............. (0.39) (0.47) 16.28 7.30 77,476 1.21 0.44 Year Ended June 30, 2000.............. (1.49) (1.58) 15.61 (6.06) 45,190 1.21 0.56 Year Ended June 30, 1999.............. (1.05) (1.19) 18.24 17.39 28,448 1.20 0.90 Year Ended June 30, 1998.............. (0.93) (1.10) 16.77 21.14 15,699 1.20 1.10 Equity Income Fund (Class A) Year Ended June 30, 2002.............. (1.06) (1.26) 16.30 (9.89) 95,276 1.24 1.12 Year Ended June 30, 2001.............. (2.52) (2.72) 19.36 4.02 94,379 1.23 1.00 Year Ended June 30, 2000.............. (0.94) (1.20) 21.19 (8.61) 102,783 1.16 1.17 Year Ended June 30, 1999.............. (1.68) (1.94) 24.45 10.94 135,420 1.18 1.17 Year Ended June 30, 1998.............. (2.23) (2.48) 24.04 22.91 117,682 1.25 1.15 Ratios/Supplementary Data -------------------------- Ratio of Expenses to Average Portfolio Net Assets* Turnover (a) ----------- ------------ Small Cap Growth Fund (Class A) Year Ended June 30, 2002.............. 1.41% 119.33% Year Ended June 30, 2001.............. 1.40 157.71 Year Ended June 30, 2000.............. 1.41 163.03 Year Ended June 30, 1999.............. 1.44 127.83 Year Ended June 30, 1998.............. 1.44 83.77 Small Cap Value Fund (Class A) Year Ended June 30, 2002.............. 1.35 39.91 Year Ended June 30, 2001.............. 1.33 74.81 Year Ended June 30, 2000.............. 1.40 146.46 Six Months Ended June 30, 1999 (b).... 1.29(d) 50.90 Year Ended December 31, 1998.......... 1.19 42.39 Year Ended December 31, 1997.......... 1.18 58.29 Mid Cap Growth Fund (Class A) Year Ended June 30, 2002.............. 1.42 83.02 Year Ended June 30, 2001.............. 1.37 127.02 Year Ended June 30, 2000.............. 1.34 181.78 Year Ended June 30, 1999.............. 1.34 141.46 Year Ended June 30, 1998.............. 1.35 158.43 Mid Cap Value (Class A) Year Ended June 30, 2002.............. 1.33 101.29 Year Ended June 30, 2001.............. 1.32 127.06 Year Ended June 30, 2000.............. 1.34 110.43 Year Ended June 30, 1999.............. 1.31 115.65 Year Ended June 30, 1998.............. 1.31 106.41 Year Ended June 30, 1997.............. 1.31 92.66 Diversified Mid Cap Fund (Class A) Year Ended June 30, 2002.............. 1.34 37.08 Year Ended June 30, 2001.............. 1.32 59.45 Year Ended June 30, 2000.............. 1.35 70.01 Six Months Ended June 30, 1999 (f).... 1.22(d) 23.53 Year Ended December 31, 1998.......... 1.15 26.89 Year Ended December 31, 1997.......... 1.09 37.54(g) Large Cap Growth Fund (Class A) Year Ended June 30, 2002.............. 1.42 69.07 Year Ended June 30, 2001.............. 1.35 73.36 Year Ended June 30, 2000.............. 1.29 123.21 Year Ended June 30, 1999.............. 1.31 86.34 Year Ended June 30, 1998.............. 1.34 117.34 Large Cap Value Fund (Class A) Year Ended June 30, 2002.............. 1.34 125.65 Year Ended June 30, 2001.............. 1.31 127.66 Year Ended June 30, 2000.............. 1.31 131.95 Year Ended June 30, 1999.............. 1.30 40.69 Year Ended June 30, 1998.............. 1.30 47.35 Equity Income Fund (Class A) Year Ended June 30, 2002.............. 1.36 17.03 Year Ended June 30, 2001.............. 1.35 13.44 Year Ended June 30, 2000.............. 1.35 15.82 Year Ended June 30, 1999.............. 1.34 16.22 Year Ended June 30, 1998.............. 1.35 14.64
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 128 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- -------------- Net Realized Capital Net Asset Net and Unrealized Contributions Value, Investment Gains from Total from Net Beginning Income (Losses) from Investment Investment Investment of Period (Loss) Investments Advisor Activities Income --------- ---------- -------------- ------------- ---------- -------------- Diversified Equity Fund (Class A) Year Ended June 30, 2002............ $12.91 $0.02 $(2.45) $ -- $(2.43) $(0.02) Year Ended June 30, 2001............ 15.00 -- (1.84) -- (1.84) (0.01) Year Ended June 30, 2000............ 15.16 -- 0.72 -- 0.72 (0.01) Year Ended June 30, 1999............ 13.50 0.02 2.51 -- 2.53 (0.03) Year Ended June 30, 1998............ 11.50 0.05 3.36 -- 3.41 (0.05) Balanced Fund (Class A) Year Ended June 30, 2002............ 13.14 0.29 (1.48) -- (1.19) (0.29) Year Ended June 30, 2001............ 14.00 0.31 (0.85) -- (0.54) (0.32) Year Ended June 30, 2000............ 14.14 0.34 0.40 -- 0.74 (0.35) Year Ended June 30, 1999............ 13.81 0.31 1.28 -- 1.59 (0.31) Year Ended June 30, 1998............ 13.00 0.36 2.24 -- 2.60 (0.36) Equity Index Fund (Class A) Year Ended June 30, 2002............ 27.96 0.23 (5.37) -- (5.14) (0.22) Year Ended June 30, 2001............ 33.20 0.20 (5.25) -- (5.05) (0.19) Year Ended June 30, 2000............ 31.78 0.22 1.87 -- 2.09 (0.22) Year Ended June 30, 1999............ 27.15 0.22 5.56 -- 5.78 (0.23) Year Ended June 30, 1998............ 21.81 0.26 5.97 -- 6.23 (0.26) Market Expansion Index Fund (Class A) Year Ended June 30, 2002............ 8.81 0.01 (0.19) -- (0.18) (0.01) Year Ended June 30, 2001............ 9.06 0.03 0.71 -- 0.74 (0.03) Year Ended June 30, 2000............ 10.63 0.05 1.14 0.02 1.21 (0.05) Six Months Ended June 30, 1999 (b).. 10.53 0.03 0.39 -- 0.42 (0.03) July 31, 1998 to December 31, 1998 (e)............................ 10.00 -- 0.95 -- 0.95 (0.01) Technology Fund (Class A) Year Ended June 30, 2002............ 5.89 (0.06) (2.27) -- (2.33) -- July 28, 2000 to June 30, 2001 (e).. 10.00 (0.08) (4.03) -- (4.11) -- Health Sciences Fund (Class A) Year Ended June 30, 2002............ 11.70 (0.07) (2.75) -- (2.82) -- March 23, 2001 to June 30, 2001 (e)............................ 10.00 (0.02) 1.72 -- 1.70 -- International Equity Index Fund (Class A) Year Ended June 30, 2002............ 16.08 0.10 (2.00) -- (1.90) (0.10) Year Ended June 30, 2001............ 21.66 0.25 (5.65) -- (5.40) (0.13) Year Ended June 30, 2000............ 18.68 0.11 3.16 -- 3.27 --(f) Year Ended June 30, 1999............ 17.99 0.29 1.60 -- 1.89 (0.35) Year Ended June 30, 1998............ 16.92 0.19 1.31 -- 1.50 -- Diversified International Fund (Class A) Year Ended June 30, 2002............ 13.11 (0.04) (1.13) -- (1.17) (0.11) Year Ended June 30, 2001............ 17.90 0.12 (4.57) -- (4.45) (0.04) Year Ended June 30, 2000............ 15.08 0.05 3.07 -- 3.12 (0.12) Six Months Ended June 30, 1999 (g).. 13.89 0.08 1.11 -- 1.19 -- Year Ended December 31, 1998........ 12.11 0.11 1.84 -- 1.95 (0.17) Year Ended December 31, 1997........ 11.77 0.07 0.36 -- 0.43 (0.09)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Market Expansion Index Fund became the Market Expansion Index Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Market Expansion Index Fund. (c) Not annualized. (d) Annualized. (e) Period from commencement of operations. (f) Amount is less than $0.01. (g) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus International Equity Fund became the Diversified International Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus International Equity Fund. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 129 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ ------------------------ Net Asset Net Assets, Ratio of Net Value, End Expenses Realized Total End Total of Period to Average Gains Distributions of Period Return (000's) Net Assets -------- ------------- --------- -------- ----------- ---------- Diversified Equity Fund (Class A) Year Ended June 30, 2002................... $(0.04) $(0.06) $10.42 (18.87)% $193,278 1.23% Year Ended June 30, 2001................... (0.24) (0.25) 12.91 (12.52) 232,969 1.20 Year Ended June 30, 2000................... (0.87) (0.88) 15.00 4.97 298,378 1.20 Year Ended June 30, 1999................... (0.84) (0.87) 15.16 20.36 340,736 1.20 Year Ended June 30, 1998................... (1.36) (1.41) 13.50 31.96 80,500 1.23 Balanced Fund (Class A) Year Ended June 30, 2002................... -- (0.29) 11.66 (9.20) 112,233 1.14 Year Ended June 30, 2001................... -- (0.32) 13.14 (3.92) 129,984 1.14 Year Ended June 30, 2000................... (0.53) (0.88) 14.00 5.48 135,367 1.13 Year Ended June 30, 1999................... (0.95) (1.26) 14.14 12.45 80,819 1.10 Year Ended June 30, 1998................... (1.43) (1.79) 13.81 21.71 50,456 1.10 Equity Index Fund (Class A) Year Ended June 30, 2002................... -- (0.22) 22.60 (18.46) 452,983 0.60 Year Ended June 30, 2001................... -- (0.19) 27.96 (15.25) 728,675 0.60 Year Ended June 30, 2000................... (0.45) (0.67) 33.20 6.61 903,371 0.60 Year Ended June 30, 1999................... (0.92) (1.15) 31.78 22.22 732,325 0.60 Year Ended June 30, 1998................... (0.63) (0.89) 27.15 29.33 218,518 0.60 Market Expansion Index Fund (Class A) Year Ended June 30, 2002................... (0.04) (0.05) 8.58 (2.11) 11,047 0.82 Year Ended June 30, 2001................... (0.96) (0.99) 8.81 8.59 3,808 0.82 Year Ended June 30, 2000................... (2.73) (2.78) 9.06 13.93 2,066 0.82 Six Months Ended June 30, 1999 (b)......... (0.29) (0.32) 10.63 4.39(c) 277 0.85(d) July 31, 1998 to December 31, 1998 (e)..... (0.41) (0.42) 10.53 9.30(c) 30 0.77(d) Technology Fund (Class A) Year Ended June 30, 2002................... -- -- 3.56 (39.56) 18,643 1.55 July 28, 2000 to June 30, 2001 (e) -- -- 5.89 41.10(c) 33,349 1.53(d) Health Sciences Fund (Class A) Year Ended June 30, 2002................... (0.04) (0.04) 8.84 (24.19) 7,705 1.60 March 23, 2001 to June 30, 2001 (e) -- -- 11.70 17.00(c) 5,016 1.60(d) International Equity Index Fund (Class A) Year Ended June 30, 2002................... -- (0.10) 14.08 (11.79) 30,981 1.12 Year Ended June 30, 2001................... (0.05) (0.18) 16.08 (25.05) 30,002 1.08 Year Ended June 30, 2000................... (0.29) (0.29) 21.66 17.58 67,967 1.11 Year Ended June 30, 1999................... (0.85) (1.20) 18.68 11.21 55,691 1.10 Year Ended June 30, 1998................... (0.43) (0.43) 17.99 9.34 24,060 1.13 Diversified International Fund (Class A) Year Ended June 30, 2002................... -- (0.11) 11.83 (8.96) 29,414 1.30 Year Ended June 30, 2001................... (0.30) (0.34) 13.11 (25.25) 34,840 1.30 Year Ended June 30, 2000................... (0.18) (0.30) 17.90 20.66 35,605 1.30 Six Months Ended June 30, 1999 (g) -- -- 15.08 8.57(c) 34,900 1.29(d) Year Ended December 31, 1998............... -- (0.17) 13.89 16.12 44,232 1.34 Year Ended December 31, 1997............... -- (0.09) 12.11 3.69 26,703 1.35 Ratios/Supplementary Data ----------------------------------------- Ratio of Net Investment Ratio of Income Expenses to Average to Average Portfolio Net Assets Net Assets* Turnover (a) ------------ ----------- ------------ Diversified Equity Fund (Class A) Year Ended June 30, 2002................... 0.21% 1.34% 14.29% Year Ended June 30, 2001................... 0.01 1.31 21.92 Year Ended June 30, 2000................... (0.05) 1.30 37.98 Year Ended June 30, 1999................... 0.10 1.30 50.82 Year Ended June 30, 1998................... 0.40 1.33 62.37 Balanced Fund (Class A) Year Ended June 30, 2002................... 2.27 1.39 24.92 Year Ended June 30, 2001................... 2.31 1.36 37.61 Year Ended June 30, 2000................... 2.53 1.34 57.08 Year Ended June 30, 1999................... 2.33 1.30 85.81 Year Ended June 30, 1998................... 2.77 1.38 46.04 Equity Index Fund (Class A) Year Ended June 30, 2002................... 0.85 0.95 6.68 Year Ended June 30, 2001................... 0.64 0.93 9.72 Year Ended June 30, 2000................... 0.69 0.92 7.89 Year Ended June 30, 1999................... 0.79 0.92 5.37 Year Ended June 30, 1998................... 1.11 0.96 4.32 Market Expansion Index Fund (Class A) Year Ended June 30, 2002................... 0.18 1.23 73.63 Year Ended June 30, 2001................... 0.34 1.20 36.68 Year Ended June 30, 2000................... 0.51 1.28 64.29 Six Months Ended June 30, 1999 (b)......... 0.43(d) 1.42(d) 36.50 July 31, 1998 to December 31, 1998 (e)..... 0.47(d) 1.24(d) 20.18 Technology Fund (Class A) Year Ended June 30, 2002................... (1.28) 2.55 33.74 July 28, 2000 to June 30, 2001 (e) 1.21(d) 2.28(d) 76.53 Health Sciences Fund (Class A) Year Ended June 30, 2002................... (0.88) 2.48 67.68 March 23, 2001 to June 30, 2001 (e) (0.86)(d) 6.19(d) 2.34 International Equity Index Fund (Class A) Year Ended June 30, 2002................... 0.54 1.22 13.60 Year Ended June 30, 2001................... 0.80 1.20 6.75 Year Ended June 30, 2000................... 0.51 1.21 13.85 Year Ended June 30, 1999................... 1.06 1.20 33.99 Year Ended June 30, 1998................... 1.11 1.23 9.90 Diversified International Fund (Class A) Year Ended June 30, 2002................... 0.42 1.46 266.10 Year Ended June 30, 2001................... 0.90 1.42 29.92 Year Ended June 30, 2000................... 0.29 1.43 17.05 Six Months Ended June 30, 1999 (g) 1.25(d) 1.37(d) 2.96 Year Ended December 31, 1998............... 0.79 1.34 8.50 Year Ended December 31, 1997............... 0.80 1.35 3.56
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 130 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Net Asset Net and Unrealized Value, Investment Gains Total from Net Beginning Income (Losses) from Investment Investment of Period (Loss) Investments Activities Income --------- ---------- -------------- ---------- ------------- Small Cap Growth Fund (Class B) Year Ended June 30, 2002............... $ 9.82 $(0.14) $(1.11) $(1.25) $ -- Year Ended June 30, 2001............... 12.36 (0.15) (1.00) (1.15) -- Year Ended June 30, 2000............... 10.26 (0.01) 2.99 2.98 -- Year Ended June 30, 1999............... 11.79 (0.06) (0.28) (0.34) -- Year Ended June 30, 1998............... 10.84 (0.03) 2.31 2.28 -- Small Cap Value Fund (Class B) Year Ended June 30, 2002............... 18.52 (0.03) 2.61 2.58 (0.01) Year Ended June 30, 2001............... 13.07 0.26 5.27 5.53 (0.08) Year Ended June 30, 2000............... 13.63 (0.06) (0.44) (0.50) (0.06) Six Months Ended June 30, 1999 (b)..... 14.41 (0.11) (0.59) (0.70) -- Year Ended December 31, 1998........... 15.74 (0.17) (0.63) (0.80) -- Year Ended December 31, 1997........... 13.58 (0.07) 4.00 3.93 -- Mid Cap Growth Fund (Class B) Year Ended June 30, 2002............... 19.71 (0.29) (2.87) (3.16) -- Year Ended June 30, 2001............... 27.17 (0.25) (2.89) (3.14) -- Year Ended June 30, 2000............... 23.67 (0.12) 7.70 7.58 -- Year Ended June 30, 1999............... 21.44 (0.18) 5.11 4.93 -- Year Ended June 30, 1998............... 18.82 (0.15) 5.35 5.20 -- Mid Cap Value (Class B) Year Ended June 30, 2002............... 16.57 (0.06) (0.06) (0.12) -- Year Ended June 30, 2001............... 13.34 (0.01) 3.92 3.91 -- Year Ended June 30, 2000............... 14.80 (0.01) (0.14) (0.15) (0.01) Year Ended June 30, 1999............... 16.85 -- 0.22 0.22 (0.01) Year Ended June 30, 1998............... 15.64 (0.02) 3.98 3.96 (0.01) Diversified Mid Cap Fund (Class B)** Year Ended June 30, 2002............... 17.98 (0.11) (1.51) (1.62) -- Year Ended June 30, 2001............... 32.40 (0.30) 2.21 1.91 -- Year Ended June 30, 2000............... 40.92 (0.08) 3.64 3.56 (0.04) Six Months Ended June 30, 1999 (e)..... 38.20 (0.28) 3.20 2.92 -- Year Ended December 31, 1998........... 42.32 (0.36) 1.80 1.44 -- Year Ended December 31, 1997........... 38.28 (0.12) 10.40 10.28 -- Large Cap Growth Fund (Class B) Year Ended June 30, 2002............... 16.60 (0.18) (4.59) (4.77) -- Year Ended June 30, 2001............... 26.14 (0.29) (8.35) (8.64) -- Year Ended June 30, 2000............... 25.92 (0.15) 3.71 3.56 -- Year Ended June 30, 1999............... 22.73 (0.09) 5.64 5.55 -- Year Ended June 30, 1998............... 19.61 (0.10) 6.10 6.00 -- Large Cap Value Fund (Class B) Year Ended June 30, 2002............... 16.22 (0.05) (3.22) (3.27) -- Year Ended June 30, 2001............... 15.61 (0.04) 1.04 1.00 -- Year Ended June 30, 2000............... 18.25 (0.02) (1.12) (1.14) (0.01) Year Ended June 30, 1999............... 16.84 0.03 2.48 2.51 (0.05) Year Ended June 30, 1998............... 14.95 0.07 2.84 2.91 (0.09) Equity Income Fund (Class B) Year Ended June 30, 2002............... 19.37 0.06 (2.00) (1.94) (0.09) Year Ended June 30, 2001............... 21.23 0.05 0.69 0.74 (0.08) Year Ended June 30, 2000............... 24.50 0.09 (2.30) (2.21) (0.12) Year Ended June 30, 1999............... 24.08 0.09 2.10 2.19 (0.09) Year Ended June 30, 1998............... 21.95 0.26 4.36 4.62 (0.26)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. ** Per share numbers prior to November 17, 2000, have been adjusted to reflect a 4 for 1 reverse stock split. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Small Cap Opportunity Fund became the Small Cap Value Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Small Cap Opportunity Fund. (c) Not annualized. (d) Annualized. (e) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Mid Cap Opportunity Fund became the Diversified Mid Cap Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Mid Cap Opportunity Fund. (f) The Portfolio Turnover was adjusted for Redemptions In-Kind for shareholders that took place during 1997. The Fund's securities sales were appropriately reduced by the fair market value of the Redemptions In-Kind. The Redemptions In-Kind for the Fund was approximately $4 million. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 131 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ --------------------------------------- Ratio of Net Net Asset Net Assets, Ratio of Investment Net Value, End Expenses Income Realized Total End Total of Period to Average to Average Gains Distributions of Period Return (000's) Net Assets Net Assets -------- ------------- --------- ------ ----------- ---------- ------------ Small Cap Growth Fund (Class B) Year Ended June 30, 2002.............. $ -- $ -- $ 8.57 (12.73)% $23,792 2.05% (1.65)% Year Ended June 30, 2001.............. (1.39) (1.39) 9.82 (9.84) 25,625 2.04 (1.59) Year Ended June 30, 2000.............. (0.88) (0.88) 12.36 30.89 27,843 2.05 (1.23) Year Ended June 30, 1999.............. (1.19) (1.19) 10.26 (1.69) 10,278 2.06 (1.00) Year Ended June 30, 1998.............. (1.33) (1.33) 11.79 22.24 8,567 2.06 (1.02) Small Cap Value Fund (Class B) Year Ended June 30, 2002.............. (1.12) (1.13) 19.97 14.65 30,017 1.98 (0.27) Year Ended June 30, 2001.............. -- (0.08) 18.52 42.42 10,303 1.96 0.29 Year Ended June 30, 2000.............. -- (0.06) 13.07 (3.67) 2,531 1.93 (0.14) Six Months Ended June 30, 1999 (b).... (0.08) (0.08) 13.63 (4.81)(c) 3,320 1.94(d) (1.34)(d) Year Ended December 31, 1998.......... (0.53) (0.53) 14.41 (5.11) 4,014 1.94 (1.48) Year Ended December 31, 1997.......... (1.77) (1.77) 15.74 29.17 1,799 1.93 (1.43) Mid Cap Growth Fund (Class B) Year Ended June 30, 2002.............. (0.07) (0.07) 16.48 (16.06) 268,231 1.99 (1.57) Year Ended June 30, 2001.............. (4.32) (4.32) 19.71 (14.42) 333,269 1.99 (1.60) Year Ended June 30, 2000.............. (4.08) (4.08) 27.17 35.23 316,729 1.99 (1.39) Year Ended June 30, 1999.............. (2.70) (2.70) 23.67 26.96 147,600 1.99 (1.35) Year Ended June 30, 1998.............. (2.58) (2.58) 21.44 29.79 90,930 2.00 (1.35) Mid Cap Value (Class B) Year Ended June 30, 2002.............. (1.36) (1.36) 15.09 (0.77) 73,191 1.97 (0.43) Year Ended June 30, 2001.............. (0.68) (0.68) 16.57 30.26 56,715 1.96 (0.24) Year Ended June 30, 2000.............. (1.30) (1.31) 13.34 (0.61) 33,734 1.97 (0.07) Year Ended June 30, 1999.............. (2.26) (2.27) 14.80 2.76 41,380 1.95 (0.25) Year Ended June 30, 1998.............. (2.74) (2.75) 16.85 26.97 30,094 1.96 (0.15) Diversified Mid Cap Fund (Class B)** Year Ended June 30, 2002.............. (0.88) (0.88) 15.48 (9.28) 14,727 1.97 (0.84) Year Ended June 30, 2001.............. (16.33) (16.33) 17.98 5.05 12,149 1.93 (0.81) Year Ended June 30, 2000.............. (12.04) (12.08) 32.40 13.01 6,771 1.86 (0.75) Six Months Ended June 30, 1999 (e).... (0.20) (0.20) 40.92 7.76(c) 6,283 1.88(d) (1.08)(d) Year Ended December 31, 1998.......... (5.56) (5.56) 38.20 3.79 7,108 1.90 (1.08) Year Ended December 31, 1997.......... (6.24) (6.24) 42.32 27.10 3,965 1.84 (0.95) Large Cap Growth Fund (Class B) Year Ended June 30, 2002.............. -- -- 11.83 (28.73) 386,175 1.97 (1.13) Year Ended June 30, 2001.............. (0.90) (0.90) 16.60 (34.20) 619,423 1.93 (1.38) Year Ended June 30, 2000.............. (3.34) (3.34) 26.14 14.16 978,576 1.94 (1.13) Year Ended June 30, 1999.............. (2.36) (2.36) 25.92 27.54 617,672 1.96 (0.98) Year Ended June 30, 1998.............. (2.88) (2.88) 22.73 34.39 280,563 1.99 (0.80) Large Cap Value Fund (Class B) Year Ended June 30, 2002.............. (0.17) (0.17) 12.78 (20.32) 23,015 1.98 (0.33) Year Ended June 30, 2001.............. (0.39) (0.39) 16.22 6.42 31,222 1.96 (0.31) Year Ended June 30, 2000.............. (1.49) (1.50) 15.61 (6.56) 25,795 1.96 (0.18) Year Ended June 30, 1999.............. (1.05) (1.10) 18.25 16.30 24,877 1.95 0.15 Year Ended June 30, 1998.............. (0.93) (1.02) 16.84 20.18 17,154 1.95 0.33 Equity Income Fund (Class B) Year Ended June 30, 2002.............. (1.06) (1.15) 16.28 (10.57) 105,010 1.99 0.38 Year Ended June 30, 2001.............. (2.52) (2.60) 19.37 3.27 126,701 1.98 0.25 Year Ended June 30, 2000.............. (0.94) (1.06) 21.23 (9.22) 142,259 1.91 0.43 Year Ended June 30, 1999.............. (1.68) (1.77) 24.50 10.18 197,016 1.93 0.40 Year Ended June 30, 1998.............. (2.23) (2.49) 24.08 21.97 165,813 1.99 0.39 Ratios/Supplementary Data -------------------------- Ratio of Expenses to Average Portfolio Net Assets* Turnover (a) ----------- ------------ Small Cap Growth Fund (Class B) Year Ended June 30, 2002.............. 2.06% 119.33% Year Ended June 30, 2001.............. 2.05 157.71 Year Ended June 30, 2000.............. 2.06 163.03 Year Ended June 30, 1999.............. 2.09 127.83 Year Ended June 30, 1998.............. 2.09 83.77 Small Cap Value Fund (Class B) Year Ended June 30, 2002.............. 2.00 39.91 Year Ended June 30, 2001.............. 1.98 74.81 Year Ended June 30, 2000.............. 2.05 146.46 Six Months Ended June 30, 1999 (b).... 2.02(d) 50.90 Year Ended December 31, 1998.......... 1.94 42.39 Year Ended December 31, 1997.......... 1.93 58.29 Mid Cap Growth Fund (Class B) Year Ended June 30, 2002.............. 2.07 83.02 Year Ended June 30, 2001.............. 2.02 127.02 Year Ended June 30, 2000.............. 1.99 181.78 Year Ended June 30, 1999.............. 1.99 141.46 Year Ended June 30, 1998.............. 2.00 158.43 Mid Cap Value (Class B) Year Ended June 30, 2002.............. 1.98 101.29 Year Ended June 30, 2001.............. 1.97 127.06 Year Ended June 30, 2000.............. 1.99 110.43 Year Ended June 30, 1999.............. 1.96 115.65 Year Ended June 30, 1998.............. 1.96 106.41 Diversified Mid Cap Fund (Class B)** Year Ended June 30, 2002.............. 1.99 37.08 Year Ended June 30, 2001.............. 1.96 59.45 Year Ended June 30, 2000.............. 2.00 70.01 Six Months Ended June 30, 1999 (e).... 1.95(d) 23.53 Year Ended December 31, 1998.......... 1.90 26.89 Year Ended December 31, 1997.......... 1.84 37.54(f) Large Cap Growth Fund (Class B) Year Ended June 30, 2002.............. 2.07 69.07 Year Ended June 30, 2001.............. 2.00 73.36 Year Ended June 30, 2000.............. 1.94 123.21 Year Ended June 30, 1999.............. 1.96 86.34 Year Ended June 30, 1998.............. 1.99 117.34 Large Cap Value Fund (Class B) Year Ended June 30, 2002.............. 1.99 125.65 Year Ended June 30, 2001.............. 1.96 127.66 Year Ended June 30, 2000.............. 1.96 131.95 Year Ended June 30, 1999.............. 1.95 40.69 Year Ended June 30, 1998.............. 1.95 47.35 Equity Income Fund (Class B) Year Ended June 30, 2002.............. 2.01 17.03 Year Ended June 30, 2001.............. 2.00 13.44 Year Ended June 30, 2000.............. 2.00 15.82 Year Ended June 30, 1999.............. 1.99 16.22 Year Ended June 30, 1998.............. 1.99 14.64
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 132 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Capital Net Asset Net and Unrealized Contributions Value, Investment Gains from Total from Net Beginning Income (Losses) from Investment Investment Investment of Period (Loss) Investments Advisor Activities Income --------- ---------- -------------- ------------- ---------- ------------- Diversified Equity Fund (Class B) Year Ended June 30, 2002............. $12.56 $(0.06) $(2.38) $ -- $(2.44) $ -- Year Ended June 30, 2001............. 14.70 (0.11) (1.79) -- (1.90) -- Year Ended June 30, 2000............. 14.97 (0.10) 0.70 -- 0.60 -- Year Ended June 30, 1999............. 13.40 (0.07) 2.48 -- 2.41 -- Year Ended June 30, 1998............. 11.47 (0.02) 3.31 -- 3.29 -- Balanced Fund (Class B) Year Ended June 30, 2002............. 13.20 0.19 (1.49) -- (1.30) (0.19) Year Ended June 30, 2001............. 14.06 0.21 (0.85) -- (0.64) (0.22) Year Ended June 30, 2000............. 14.20 0.25 0.39 -- 0.64 (0.25) Year Ended June 30, 1999............. 13.87 0.21 1.28 -- 1.49 (0.21) Year Ended June 30, 1998............. 13.04 0.26 2.26 -- 2.52 (0.26) Equity Index Fund (Class B) Year Ended June 30, 2002............. 27.83 0.02 (5.33) -- (5.31) (0.02) Year Ended June 30, 2001............. 33.09 (0.04) (5.22) -- (5.26) -- Year Ended June 30, 2000............. 31.72 (0.01) 1.84 -- 1.83 (0.01) Year Ended June 30, 1999............. 27.13 0.04 5.53 -- 5.57 (0.06) Year Ended June 30, 1998............. 21.80 0.10 5.97 -- 6.07 (0.11) Market Expansion Index Fund (Class B) Year Ended June 30, 2002............. 8.86 (0.03) (0.21) -- (0.24) -- Year Ended June 30, 2001............. 9.15 (0.02) 0.69 -- 0.67 -- Year Ended June 30, 2000............. 10.74 (0.01) 1.13 0.02 1.14 -- Six Months Ended June 30, 1999 (b)... 10.49 0.02 0.54 -- 0.56 (0.02) July 31, 1998 to December 31, 1998 (e)............................. 10.00 (0.02) 0.92 -- 0.90 -- Technology Fund (Class B) Year Ended June 30, 2002............. 5.85 (0.09) (2.25) -- (2.34) -- July 29, 2000 to June 30, 2001 (e)... 10.00 (0.09) (4.06) -- (4.15) -- Health Sciences Fund (Class B) Year Ended June 30, 2002............. 11.69 (0.13) (2.77) -- (2.90) -- March 23, 2001 to June 30, 2001 (e).. 10.00 (0.03) 1.72 -- 1.69 -- International Equity Index Fund (Class B) Year Ended June 30, 2002............. 15.32 (0.02) (1.88) -- (1.90) (0.05) Year Ended June 30, 2001............. 20.63 (0.06) (5.20) -- (5.26) -- Year Ended June 30, 2000............. 17.89 0.04 2.99 -- 3.03 -- Year Ended June 30, 1999............. 17.33 0.10 1.55 -- 1.65 (0.24) Year Ended June 30, 1998............. 16.44 0.08 1.24 -- 1.32 -- Diversified International Fund (Class B) Year Ended June 30, 2002............. 12.07 (0.14) (1.02) -- (1.16) (0.07) Year Ended June 30, 2001............. 16.60 0.06 (4.29) -- (4.23) -- Year Ended June 30, 2000............. 14.08 0.07 2.71 -- 2.78 (0.08) Six Months Ended June 30, 1999 (g)... 13.01 0.03 1.04 -- 1.07 -- Year Ended December 31, 1998......... 11.37 0.01 1.74 -- 1.75 (0.11) Year Ended December 31, 1997......... 11.08 0.01 0.34 -- 0.35 (0.06)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus Market Expansion Index Fund became the Market Expansion Index Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus Market Expansion Index Fund. (c) Not annualized. (d) Annualized. (e) Period from commencement of operations. (f) Amount is less than $1,000. (g) Upon reorganizing as a fund of One Group Mutual Funds, the Pegasus International Equity Fund became the Diversified International Fund. The Financial Highlights for the periods prior to March 22, 1999, represent the Pegasus International Equity Fund. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 133 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ ------------------------ Net Asset Net Assets, Ratio of Net Value, End Expenses Realized Total End Total of Period to Average Gains Distributions of Period Return (000's) Net Assets -------- ------------- --------- ------ ----------- ---------- Diversified Equity Fund (Class B) Year Ended June 30, 2002................... $(0.04) $(0.04) $10.08 (19.49)% $39,421 1.98% Year Ended June 30, 2001................... (0.24) (0.24) 12.56 (13.17) 45,451 1.95 Year Ended June 30, 2000................... (0.87) (0.87) 14.70 4.23 55,227 1.95 Year Ended June 30, 1999................... (0.84) (0.84) 14.97 19.52 52,004 1.96 Year Ended June 30, 1998................... (1.36) (1.36) 13.40 30.89 25,501 1.98 Balanced Fund (Class B) Year Ended June 30, 2002................... -- (0.19) 11.71 (9.92) 224,235 1.89 Year Ended June 30, 2001................... -- (0.22) 13.20 (4.62) 275,132 1.89 Year Ended June 30, 2000................... (0.53) (0.78) 14.06 4.67 298,355 1.88 Year Ended June 30, 1999................... (0.95) (1.16) 14.20 11.59 238,490 1.85 Year Ended June 30, 1998................... (1.43) (1.69) 13.87 20.95 114,957 1.85 Equity Index Fund (Class B) Year Ended June 30, 2002................... -- (0.02) 22.50 (19.07) 415,408 1.35 Year Ended June 30, 2001................... -- -- 27.83 (15.90) 556,225 1.35 Year Ended June 30, 2000................... (0.45) (0.46) 33.09 5.80 691,700 1.35 Year Ended June 30, 1999................... (0.92) (0.98) 31.72 21.32 534,777 1.35 Year Ended June 30, 1998................... (0.63) (0.74) 27.13 28.47 351,624 1.35 Market Expansion Index Fund (Class B) Year Ended June 30, 2002................... (0.04) (0.04) 8.58 (2.75) 10,368 1.57 Year Ended June 30, 2001................... (0.96) (0.96) 8.86 7.68 4,888 1.57 Year Ended June 30, 2000................... (2.73) (2.73) 9.15 13.06 2,495 1.57 Six Months Ended June 30, 1999 (b)......... (0.29) (0.31) 10.74 5.75(c) 309 1.60(d) July 31, 1998 to December 31, 1998 (e)..... (0.41) (0.41) 10.49 9.85(c) --(f) 1.87(d) Technology Fund (Class B) Year Ended June 30, 2002................... -- -- 3.51 (40.00) 6,686 2.30 July 29, 2000 to June 30, 2001 (e)......... -- -- 5.85 (41.50)(c) 9,310 2.28(d) Health Sciences Fund (Class B) Year Ended June 30, 2002................... (0.04) (0.04) 8.75 (24.90) 6,635 2.35 March 23, 2001 to June 30, 2001 (e)........ -- -- 11.69 16.90(c) 3,170 2.33(d) International Equity Index Fund (Class B) Year Ended June 30, 2002................... -- (0.05) 13.37 (12.39) 12,006 1.87 Year Ended June 30, 2001................... (0.05) (0.05) 15.32 (25.54) 15,934 1.83 Year Ended June 30, 2000................... (0.29) (0.29) 20.63 16.99 29,007 1.86 Year Ended June 30, 1999................... (0.85) (1.09) 17.89 10.15 18,489 1.83 Year Ended June 30, 1998................... (0.43) (0.43) 17.33 8.48 13,307 1.88 Diversified International Fund (Class B) Year Ended June 30, 2002................... -- (0.07) 10.84 (9.65) 6,670 2.05 Year Ended June 30, 2001................... (0.30) (0.30) 12.07 (25.88) 9,175 2.05 Year Ended June 30, 2000................... (0.18) (0.26) 16.60 19.77 7,269 2.05 Six Months Ended June 30, 1999 (g)......... -- -- 14.08 8.22(c) 2,478 2.05(d) Year Ended December 31, 1998............... -- (0.11) 13.01 15.43 2,545 2.09 Year Ended December 31, 1997............... -- (0.06) 11.37 2.90 1,763 2.10 Ratios/Supplementary Data ----------------------------------------- Ratio of Net Investment Ratio of Income Expenses to Average to Average Portfolio Net Assets Net Assets* Turnover (a) ------------ ----------- ------------ Diversified Equity Fund (Class B) Year Ended June 30, 2002................... (0.54)% 1.99% 14.29% Year Ended June 30, 2001................... (0.74) 1.96 21.92 Year Ended June 30, 2000................... (0.80) 1.95 37.98 Year Ended June 30, 1999................... (0.80) 1.96 50.82 Year Ended June 30, 1998................... (0.35) 1.98 62.37 Balanced Fund (Class B) Year Ended June 30, 2002................... 1.52 2.04 24.92 Year Ended June 30, 2001................... 1.56 2.01 37.61 Year Ended June 30, 2000................... 1.79 1.99 57.08 Year Ended June 30, 1999................... 1.58 1.95 85.81 Year Ended June 30, 1998................... 2.01 2.03 46.04 Equity Index Fund (Class B) Year Ended June 30, 2002................... 0.10 1.60 6.68 Year Ended June 30, 2001................... (0.11) 1.58 9.72 Year Ended June 30, 2000................... (0.06) 1.57 7.89 Year Ended June 30, 1999................... 0.12 1.57 5.37 Year Ended June 30, 1998................... 0.36 1.61 4.32 Market Expansion Index Fund (Class B) Year Ended June 30, 2002................... (0.56) 1.89 73.63 Year Ended June 30, 2001................... (0.41) 1.85 36.68 Year Ended June 30, 2000................... (0.23) 1.93 64.29 Six Months Ended June 30, 1999 (b)......... (0.34)(d) 2.13(d) 36.50 July 31, 1998 to December 31, 1998 (e)..... (0.59)(d) 2.14(d) 20.18 Technology Fund (Class B) Year Ended June 30, 2002................... (2.03) 3.18 33.74 July 29, 2000 to June 30, 2001 (e)......... (1.96)(d) 3.04(d) 76.53 Health Sciences Fund (Class B) Year Ended June 30, 2002................... (1.63) 3.10 67.68 March 23, 2001 to June 30, 2001 (e)........ (1.65)(d) 7.24(d) 2.34 International Equity Index Fund (Class B) Year Ended June 30, 2002................... (0.23) 1.87 13.60 Year Ended June 30, 2001................... 0.10 1.85 6.75 Year Ended June 30, 2000................... (0.25) 1.86 13.85 Year Ended June 30, 1999................... 0.10 1.83 33.99 Year Ended June 30, 1998................... 0.26 1.88 9.90 Diversified International Fund (Class B) Year Ended June 30, 2002................... (0.33) 2.11 266.10 Year Ended June 30, 2001................... 0.19 2.07 29.92 Year Ended June 30, 2000................... (0.21) 2.08 17.05 Six Months Ended June 30, 1999 (g)......... 0.57(d) 2.08(d) 2.96 Year Ended December 31, 1998............... 0.04 2.09 8.50 Year Ended December 31, 1997............... 0.05 2.10 3.56
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 134 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Net Asset Net and Unrealized Value, Investment Gains Total from Net Beginning Income (Losses) from Investment Investment of Period (Loss) Investments Activities Income --------- ---------- -------------- ---------- ------------- Small Cap Growth Fund (Class C) Year Ended June 30, 2002............... $10.04 $(0.10) $(1.18) $(1.28) $ -- Year Ended June 30, 2001............... 12.62 (0.10) (1.09) (1.19) -- Year Ended June 30, 2000............... 10.43 -- 3.07 3.07 -- Year Ended June 30, 1999............... 11.97 (0.08) (0.27) (0.35) -- November 4, 1997 to June 30, 1998 (b).. 13.03 (0.02) 0.29 0.27 -- Small Cap Value Fund (Class C) Year Ended June 30, 2002............... 18.48 (0.01) 2.58 2.57 (0.02) Year Ended June 30, 2001............... 13.05 0.06 5.48 5.54 (0.11) Year Ended June 30, 2000............... 13.60 0.06 (0.55) (0.49) (0.06) March 22, 1999 to June 30, 1999 (b).... 12.07 -- 1.53 1.53 -- Mid Cap Growth Fund (Class C) Year Ended June 30, 2002............... 21.36 (0.29) (3.14) (3.43) -- Year Ended June 30, 2001............... 29.09 (0.34) (3.07) (3.41) -- Year Ended June 30, 2000............... 25.04 (0.20) 8.33 8.13 -- Year Ended June 30, 1999............... 22.42 (0.15) 5.47 5.32 -- November 4, 1997 to June 30, 1998 (b).. 21.47 (0.04) 2.77 2.73 -- Mid Cap Value (Class C) Year Ended June 30, 2002............... 16.57 (0.03) (0.09) (0.12) -- Year Ended June 30, 2001............... 13.35 0.02 3.90 3.92 (0.02) Year Ended June 30, 2000............... 14.80 0.03 (0.15) (0.12) (0.03) March 22, 1999 to June 30, 1999 (b).... 13.34 -- 1.46 1.46 -- Diversified Mid Cap Fund (Class C)** Year Ended June 30, 2002............... 17.99 (0.09) (1.53) (1.62) -- Year Ended June 30, 2001............... 32.36 (0.05) 2.01 1.96 -- Year Ended June 30, 2000............... 40.92 (0.28) 3.80 3.52 (0.04) March 22, 1999 to June 30, 1999 (b).... 35.72 -- 5.20 5.20 -- Large Cap Growth Fund (Class C) Year Ended June 30, 2002............... 16.45 (0.17) (4.55) (4.72) -- Year Ended June 30, 2001............... 25.91 (0.30) (8.26) (8.56) -- Year Ended June 30, 2000............... 25.71 (0.10) 3.64 3.54 -- Year Ended June 30, 1999............... 22.57 (0.04) 5.54 5.50 -- November 4, 1997 to June 30, 1998 (b).. 18.98 (0.06) 4.99 4.93 -- Large Cap Value Fund (Class C) Year Ended June 30, 2002............... 16.20 (0.04) (3.23) (3.27) -- Year Ended June 30, 2001............... 15.58 (0.03) 1.04 1.01 -- Year Ended June 30, 2000............... 18.24 (0.01) (1.15) (1.16) (0.01) March 22, 1999 to June 30, 1999 (b).... 16.96 0.03 1.28 1.31 (0.03) Equity Income Fund (Class C) Year Ended June 30, 2002............... 19.36 0.07 (2.00) (1.93) (0.09) Year Ended June 30, 2001............... 21.26 0.04 0.66 0.70 (0.08) Year Ended June 30, 2000............... 24.51 0.09 (2.27) (2.18) (0.13) Year Ended June 30, 1999............... 24.08 0.10 2.11 2.21 (0.10) November 4, 1997 to June 30, 1998 (b).. 21.40 0.06 3.39 3.45 (0.07)
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. ** Per share numbers prior to November 17, 2000, have been adjusted to reflect a 4 for 1 reverse stock split. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Period from commencement of operations. (c) Not annualized. (d) Annualized. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 135 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ --------------------------------------- Ratio of Net Net Asset Net Assets, Ratio of Investment Net Value, End Expenses Income Realized Total End Total of Period to Average to Average Gains Distributions of Period Return (000's) Net Assets Net Assets -------- ------------- --------- -------- ----------- ---------- ------------ Small Cap Growth Fund (Class C) Year Ended June 30, 2002.............. $ -- $ -- $ 8.76 (12.75)% $ 2,819 2.05% (1.65)% Year Ended June 30, 2001.............. (1.39) (1.39) 10.04 (9.96) 1,496 2.04 (1.59) Year Ended June 30, 2000.............. (0.88) (0.88) 12.62 31.27 770 2.05 (1.24) Year Ended June 30, 1999.............. (1.19) (1.19) 10.43 (1.75) 129 2.06 (1.02) November 4, 1997 to June 30, 1998 (b).................................... (1.33) (1.33) 11.97 3.08(c) 90 2.05(d) (0.85)(d) Small Cap Value Fund (Class C) Year Ended June 30, 2002.............. (1.12) (1.14) 19.91 14.68 35,923 1.98 (0.34) Year Ended June 30, 2001.............. -- (0.11) 18.48 42.55 1,531 1.98 0.22 Year Ended June 30, 2000.............. -- (0.06) 13.05 (3.57) 50 1.94 0.21 March 22, 1999 to June 30, 1999 (b)... -- -- 13.60 12.68(c) 19 1.94(d) (1.13)(d) Mid Cap Growth Fund (Class C) Year Ended June 30, 2002.............. (0.07) (0.07) 17.86 (16.08) 56,790 1.99 (1.57) Year Ended June 30, 2001.............. (4.32) (4.32) 21.36 (14.39) 65,123 1.99 (1.60) Year Ended June 30, 2000.............. (4.08) (4.08) 29.09 35.50 64,422 1.99 (1.40) Year Ended June 30, 1999.............. (2.70) (2.70) 25.04 27.57 16,597 1.99 (1.32) November 4, 1997 to June 30, 1998 (b).................................... (1.78) (1.78) 22.42 14.27(c) 1,088 2.01(d) (1.31)(d) Mid Cap Value (Class C) Year Ended June 30, 2002.............. (1.36) (1.36) 15.09 (0.77) 12,349 1.97 (0.43) Year Ended June 30, 2001.............. (0.68) (0.70) 16.57 30.32 2,807 1.96 (0.33) Year Ended June 30, 2000.............. (1.30) (1.33) 13.35 (0.40) 169 1.97 (0.10) March 22, 1999 to June 30, 1999 (b)... -- -- 14.80 10.98(c) 48 1.95(d) (0.44)(d) Diversified Mid Cap Fund (Class C)** Year Ended June 30, 2002.............. (0.88) (0.88) 15.49 (9.27) 3,239 1.97 (0.84) Year Ended June 30, 2001.............. (16.33) (16.33) 17.99 5.24 1,809 1.97 (0.77) Year Ended June 30, 2000.............. (12.04) (12.08) 32.36 12.83 109 1.86 (0.72) March 22, 1999 to June 30, 1999 (b)... -- -- 40.92 14.56(c) 15 1.88(d) (1.20)(d) Large Cap Growth Fund (Class C) Year Ended June 30, 2002.............. -- -- 11.73 (28.69) 22,237 1.97 (1.13) Year Ended June 30, 2001.............. (0.90) (0.90) 16.45 (34.19) 35,685 1.93 (1.38) Year Ended June 30, 2000.............. (3.34) (3.34) 25.91 14.20 55,682 1.95 (1.17) Year Ended June 30, 1999.............. (2.36) (2.36) 25.71 27.52 8,328 1.95 (0.94) November 4, 1997 to June 30, 1998 (b).................................... (1.34) (1.34) 22.57 27.63(c) 492 1.98(d) (0.87)(d) Large Cap Value Fund (Class C) Year Ended June 30, 2002.............. (0.17) (0.17) 12.76 (20.35) 3,643 1.98 (0.33) Year Ended June 30, 2001.............. (0.39) (0.39) 16.20 6.50 3,767 1.96 (0.31) Year Ended June 30, 2000.............. (1.49) (1.50) 15.58 (6.63) 2,536 1.96 (0.16) March 22, 1999 to June 30, 1999 (b)... -- (0.03) 18.24 7.74(c) 135 1.95(d) 0.34(d) Equity Income Fund (Class C) Year Ended June 30, 2002.............. (1.06) (1.15) 16.28 (10.52) 1,645 1.99 0.34 Year Ended June 30, 2001.............. (2.52) (2.60) 19.36 3.07 1,160 1.98 0.25 Year Ended June 30, 2000.............. (0.94) (1.07) 21.26 (9.10) 1,215 1.94 0.37 Year Ended June 30, 1999.............. (1.68) (1.78) 24.51 10.24 658 1.94 0.36 November 4, 1997 to June 30, 1998 (b).................................... (0.70) (0.77) 24.08 16.57(c) 795 1.98(d) 0.38(d) Ratios/Supplementary Data -------------------------- Ratio of Expenses to Average Portfolio Net Assets* Turnover (a) ----------- ------------ Small Cap Growth Fund (Class C) Year Ended June 30, 2002.............. 2.06% 119.33% Year Ended June 30, 2001.............. 2.05 157.71 Year Ended June 30, 2000.............. 2.06 163.03 Year Ended June 30, 1999.............. 2.09 127.83 November 4, 1997 to June 30, 1998 (b).................................... 2.07(d) 83.77 Small Cap Value Fund (Class C) Year Ended June 30, 2002.............. 2.00 39.91 Year Ended June 30, 2001.............. 1.98 74.81 Year Ended June 30, 2000.............. 2.06 146.46 March 22, 1999 to June 30, 1999 (b)... 2.11(d) 50.90 Mid Cap Growth Fund (Class C) Year Ended June 30, 2002.............. 2.07 83.02 Year Ended June 30, 2001.............. 2.02 127.02 Year Ended June 30, 2000.............. 1.99 181.78 Year Ended June 30, 1999.............. 1.99 141.46 November 4, 1997 to June 30, 1998 (b).................................... 2.01(d) 158.43 Mid Cap Value (Class C) Year Ended June 30, 2002.............. 1.98 101.29 Year Ended June 30, 2001.............. 1.97 127.06 Year Ended June 30, 2000.............. 2.00 110.43 March 22, 1999 to June 30, 1999 (b)... 1.96(d) 115.65 Diversified Mid Cap Fund (Class C)** Year Ended June 30, 2002.............. 1.99 37.08 Year Ended June 30, 2001.............. 1.98 59.45 Year Ended June 30, 2000.............. 2.00 70.01 March 22, 1999 to June 30, 1999 (b)... 1.99(d) 23.53 Large Cap Growth Fund (Class C) Year Ended June 30, 2002.............. 2.07 69.07 Year Ended June 30, 2001.............. 2.00 73.36 Year Ended June 30, 2000.............. 1.95 123.21 Year Ended June 30, 1999.............. 1.95 86.34 November 4, 1997 to June 30, 1998 (b).................................... 1.98(d) 117.34 Large Cap Value Fund (Class C) Year Ended June 30, 2002.............. 1.99 125.65 Year Ended June 30, 2001.............. 1.96 127.66 Year Ended June 30, 2000.............. 1.96 131.95 March 22, 1999 to June 30, 1999 (b)... 1.95(d) 40.69 Equity Income Fund (Class C) Year Ended June 30, 2002.............. 2.01 17.03 Year Ended June 30, 2001.............. 2.00 13.44 Year Ended June 30, 2000.............. 2.01 15.82 Year Ended June 30, 1999.............. 1.99 16.22 November 4, 1997 to June 30, 1998 (b).................................... 1.98(d) 14.64
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 136 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Financial Highlights
Investment Activities Distributions ---------------------------- ------------- Net Realized Capital Net Asset Net and Unrealized Contributions Value, Investment Gains from Total from Net Beginning Income (Losses) from Investment Investment Investment of Period (Loss) Investments Advisor Activities Income --------- ---------- -------------- ------------- ---------- ------------- Diversified Equity Fund (Class C) Year Ended June 30, 2002............. $12.65 $(0.06) $(2.40) $ -- $(2.46) $ -- Year Ended June 30, 2001............. 14.80 (0.07) (1.84) -- (1.91) -- Year Ended June 30, 2000............. 15.06 (0.08) 0.69 -- 0.61 -- Year Ended June 30, 1999............. 13.47 (0.03) 2.46 -- 2.43 -- November 4, 1997 to June 30, 1998 (b)............................. 11.76 -- 2.35 -- 2.35 (0.01) Balanced Fund (Class C) Year Ended June 30, 2002............. 13.20 0.19 (1.48) -- (1.29) (0.20) Year Ended June 30, 2001............. 14.06 0.22 (0.86) -- (0.64) (0.22) May 30, 2000 to June 30, 2000 (b).... 13.75 0.01 0.33 -- 0.34 (0.03) Equity Index Fund (Class C) Year Ended June 30, 2002............. 27.87 0.03 (5.34) -- (5.31) (0.03) Year Ended June 30, 2001............. 33.14 (0.02) 5.25 -- (5.27) -- Year Ended June 30, 2000............. 31.76 0.01 1.84 -- 1.85 (0.02) Year Ended June 30, 1999............. 27.14 0.07 5.55 -- 5.62 (0.08) November 4, 1997 to June 30, 1998 (b)............................. 22.60 0.07 4.67 -- 4.74 (0.08) Market Expansion Index Fund (Class C) Year Ended June 30, 2002............. 8.66 (0.02) (0.21) (0.23) -- Year Ended June 30, 2001............. 8.96 (0.01) 0.67 -- 0.66 -- Year Ended June 30, 2000............. 10.57 (0.05) 1.15 0.02 1.12 --(e) March 22, 1999 to June 30, 1999 (b).. 9.32 0.02 1.25 -- 1.27 (0.02) Technology Fund (Class C) Year Ended June 30, 2002............. 5.86 (0.10) (2.24) -- (2.34) -- July 28, 2000 to June 30, 2001 (b)... 10.00 (0.09) (4.05) -- (4.14) -- Health Sciences Fund (Class C) Year Ended June 30, 2002............. 11.68 (0.17) (2.73) -- (2.90) -- March 23, 2001 to June 30, 2001 (b).. 10.00 (0.04) 1.72 -- 1.68 -- International Equity Index Fund (Class C) Year Ended June 30, 2002............. 15.87 (0.01) (1.96) -- (1.97) (0.05) Year Ended June 30, 2001............. 21.39 0.03 (5.47) -- (5.44) (0.03) Year Ended June 30, 2000............. 18.55 (0.01) 3.14 -- 3.13 -- Year Ended June 30, 1999............. 17.91 0.30 1.51 -- 1.81 (0.32) November 4, 1997 to June 30, 1998 (b)............................. 15.70 0.06 2.45 -- 2.51 -- Diversified International Fund (Class C) Year Ended June 30, 2002............. 12.05 (0.15) (1.02) -- (1.17) (0.06) Year Ended June 30, 2001............. 16.57 0.02 (4.24) -- (4.22) -- Year Ended June 30, 2000............. 14.08 0.11 2.67 -- 2.78 (0.11) March 22, 1999 to June 30, 1999 (b).. 13.47 -- 0.61 -- 0.61 --
------------ * During the period, certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated. (a) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares issued. (b) Period from commencement of operations. (c) Not annualized. (d) Annualized. (e) Amount is less than $0.01. See notes to financial statements. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 137 Report --------------------------------------------------------------------------------
Distributions Ratios/Supplementary Data ------------------------ ------------------------ Net Asset Net Assets, Ratio of Net Value, End Expenses Realized Total End Total of Period to Average Gains Distributions of Period Return (000's) Net Assets -------- ------------- --------- ------ ----------- ---------- Diversified Equity Fund (Class C) Year Ended June 30, 2002................... $(0.04) $(0.04) $10.15 (19.51)% $14,698 1.98% Year Ended June 30, 2001................... (0.24) (0.24) 12.65 (13.15) 18,450 1.95 Year Ended June 30, 2000................... (0.87) (0.87) 14.80 4.27 16,780 1.95 Year Ended June 30, 1999................... (0.84) (0.84) 15.06 19.57 8,058 1.96 November 4, 1997 to June 30, 1998 (b)...... (0.63) (0.64) 13.47 20.87(c) 1,234 1.99(d) Balanced Fund (Class C) Year Ended June 30, 2002................... -- (0.20) 11.71 (9.88) 2,853 1.89 Year Ended June 30, 2001................... -- (0.22) 13.20 (4.58) 1,492 1.89 May 30, 2000 to June 30, 2000 (b).......... -- (0.03) 14.06 2.44(c) 763 1.89(d) Equity Index Fund (Class C) Year Ended June 30, 2002................... -- (0.03) 22.53 (19.06) 112,262 1.35 Year Ended June 30, 2001................... -- -- 27.87 (15.90) 130,295 1.35 Year Ended June 30, 2000................... (0.45) (0.47) 33.14 5.84 133,030 1.35 Year Ended June 30, 1999................... (0.92) (1.00) 31.76 21.52 59,042 1.35 November 4, 1997 to June 30, 1998 (b)...... (0.12) (0.20) 27.14 21.07(c) 3,214 1.35(d) Market Expansion Index Fund (Class C) Year Ended June 30, 2002................... (0.04) (0.04) 8.39 (2.69) 6,431 1.56 Year Ended June 30, 2001................... (0.96) (0.96) 8.66 7.78 1,046 1.57 Year Ended June 30, 2000................... (2.73) (2.73) 8.96 13.11 180 1.57 March 22, 1999 to June 30, 1999 (b)........ -- (0.02) 10.57 13.64(c) 18 1.58(d) Technology Fund (Class C) Year Ended June 30, 2002................... -- -- 3.52 (39.93) 739 2.30 July 28, 2000 to June 30, 2001 (b)......... -- -- 5.86 (41.40)(c) 1,140 2.28(d) Health Sciences Fund (Class C) Year Ended June 30, 2002................... (0.04) (0.04) 8.74 (24.92) 480 2.35 March 23, 2001 to June 30, 2001 (b)........ -- -- 11.68 16.80(c) 452 2.35(d) International Equity Index Fund (Class C) Year Ended June 30, 2002................... -- (0.05) 13.85 (12.43) 8,502 1.87 Year Ended June 30, 2001................... (0.05) (0.08) 15.87 (25.50) 9,908 1.83 Year Ended June 30, 2000................... (0.29) (0.29) 21.39 16.92 11,442 1.86 Year Ended June 30, 1999................... (0.85) (1.17) 18.55 10.78 2,339 1.86 November 4, 1997 to June 30, 1998 (b)...... (0.30) (0.30) 17.91 16.34(c) 119 1.87(d) Diversified International Fund (Class C) Year Ended June 30, 2002................... -- (0.06) 10.82 (9.69) 543 2.05 Year Ended June 30, 2001................... (0.30) (0.30) 12.05 (25.87) 844 2.05 Year Ended June 30, 2000................... (0.18) (0.29) 16.57 19.76 729 2.06 March 22, 1999 to June 30, 1999 (b)........ -- -- 14.08 4.53(c) 5 2.00(d) Ratios/Supplementary Data ----------------------------------------- Ratio of Net Investment Ratio of Income Expenses to Average to Average Portfolio Net Assets Net Assets* Turnover (a) ------------ ----------- ------------ Diversified Equity Fund (Class C) Year Ended June 30, 2002................... (0.54)% 1.99% 14.29% Year Ended June 30, 2001................... (0.74) 1.96 21.92 Year Ended June 30, 2000................... (0.82) 1.95 37.98 Year Ended June 30, 1999................... (0.57) 1.96 50.82 November 4, 1997 to June 30, 1998 (b)...... (0.43)(d) 1.99(d) 62.37 Balanced Fund (Class C) Year Ended June 30, 2002................... 1.52 2.04 24.92 Year Ended June 30, 2001................... 1.56 2.00 37.61 May 30, 2000 to June 30, 2000 (b).......... 1.25(d) 2.01(d) 57.08 Equity Index Fund (Class C) Year Ended June 30, 2002................... 0.10 1.60 6.68 Year Ended June 30, 2001................... (0.11) 1.58 9.72 Year Ended June 30, 2000................... (0.06) 1.57 7.89 Year Ended June 30, 1999................... 0.11 1.57 5.37 November 4, 1997 to June 30, 1998 (b)...... 0.27(d) 1.60(d) 4.32 Market Expansion Index Fund (Class C) Year Ended June 30, 2002................... (0.56) 1.86 73.63 Year Ended June 30, 2001................... (0.42) 1.85 36.68 Year Ended June 30, 2000................... (0.24) 1.93 64.29 March 22, 1999 to June 30, 1999 (b)........ (0.33)(d) 2.17(d) 36.50 Technology Fund (Class C) Year Ended June 30, 2002................... (2.03) 3.20 33.74 July 28, 2000 to June 30, 2001 (b)......... (1.96)(d) 3.03(d) 76.53 Health Sciences Fund (Class C) Year Ended June 30, 2002................... (1.62) 3.19 67.68 March 23, 2001 to June 30, 2001 (b)........ (1.60)(d) 6.66(d) 2.34 International Equity Index Fund (Class C) Year Ended June 30, 2002................... (0.21) 1.87 13.60 Year Ended June 30, 2001................... 0.21 1.85 6.75 Year Ended June 30, 2000................... (0.17) 2.06 13.85 Year Ended June 30, 1999................... 0.73 1.86 33.99 November 4, 1997 to June 30, 1998 (b)...... 2.88(d) 1.87(d) 9.90 Diversified International Fund (Class C) Year Ended June 30, 2002................... (0.35) 2.11 266.10 Year Ended June 30, 2001................... 0.14 2.07 29.92 Year Ended June 30, 2000................... 0.30 2.09 17.05 March 22, 1999 to June 30, 1999 (b)........ 1.58(d) 2.00(d) 2.96
ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 138 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements 1. Organization: One Group Mutual Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company established as a Massachusetts business trust. The accompanying financial statements and financial highlights are those of the Small Cap Growth Fund, the Small Cap Value Fund, the Mid Cap Growth Fund, the Mid Cap Value Fund, the Diversified Mid Cap Fund, the Large Cap Growth Fund, the Large Cap Value Fund, the Equity Income Fund, the Diversified Equity Fund, the Balanced Fund, the Equity Index Fund, the Market Expansion Index Fund, the Technology Fund, the Health Sciences Fund, the International Equity Index Fund, and the Diversified International Fund, (individually a "Fund", collectively the "Funds") only. The Trust has an unlimited number of shares of beneficial interest, with no par value which may, without shareholder approval, be divided into an unlimited number of series of such shares, and any series may be classified or reclassified into one or more classes. The Trust is registered to offer forty-eight series and seven classes of shares: Class I, Class A, Class B, Class C, Service Class, Administrative Class, and Class S. The Funds are each authorized to issue Class I, Class A, Class B, and Class C shares only. Shareholders are entitled to one vote for each full share held and vote in the aggregate and not by class or series, except as otherwise expressly required by law or when the Board of Trustees has determined that the matter to be voted on affects only the interest of shareholders of a particular class or series. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust in preparation of its financial statements. The policies are in conformity with U.S. generally accepted accounting principles. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. Security Valuation Listed securities are valued at the latest available sales price on the principal exchange where such securities are traded. Unlisted securities or listed securities for which latest sales prices are not available are valued at the mean of the latest bid and ask price in the principal market where such securities are normally traded. Corporate debt securities and debt securities of U.S. issuers (other than short-term investments maturing in less than 61 days), including municipal securities, are valued on the basis of valuations provided by dealers or by an independent pricing service approved by the Board of Trustees. Short-term investments maturing in less than 61 days are valued at amortized cost, which approximates market value. Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. Options traded on an exchange are valued using the last sale price or, in the absence of a sale, the mean of the latest bid and ask prices. Options traded over-the-counter are valued using dealer- supplied valuations. Investments for which the above valuation procedures are inappropriate or deemed not to reflect fair value are stated at fair value as determined in good faith under procedures approved by the Board of Trustees. Financial Instruments Investing in financial instruments such as options, futures, and sales of forward foreign currency contracts involves risk in excess of the amounts reflected in the Statements of Assets and Liabilities. The face or contract amounts reflect the extent of the involvement the Funds have in the particular class of instrument. Risks associated with these instruments include an imperfect correlation between the movements in the price of the instruments and the price of the underlying securities and interest rates, an illiquid secondary market for the instruments or inability of counterparties to perform under the terms of the contract, and changes in the value of currency relative to the U.S. dollar. The Funds enter into these contracts primarily as a means to hedge against adverse fluctuations in the value of securities held or planned to be purchased by the Funds. Foreign Currency Translation Investment valuations, other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investments and income and Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 139 Report expenses are converted into U.S. dollars based upon exchange rates prevailing on the respective dates of depreciation from investments due to fluctuations in foreign currency exchange rates is not separately disclosed. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Forward Foreign Currency Contracts Forward foreign currency contracts are valued at the daily exchange rate of the underlying currency. Purchases and sales of forward foreign currency contracts having the same settlement date are presented net on the Statement of Assets and Liabilities. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized appreciation or depreciation until the contract settlement date. Gains or losses from the purchase or sale of forward foreign currency contracts having the same settlement date are recorded as realized on the date of offset; otherwise gains or losses are recorded as realized on settlement date. Futures Contracts The Funds may enter into futures contracts for the delayed delivery of securities at a fixed price at some future date or for the change in the value of a specified financial index over a predetermined time period. Cash or securities are deposited with brokers in order to maintain a position. Subsequent payments made or received by the Fund based on the daily change in the market value of the position are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the appreciation or depreciation is realized. The following is a summary of futures outstanding as of June 30, 2002:
Current Opening Market Number of Positions Value Fund Contract Type Contracts (000) (000) ---- ------------- --------- --------- -------- Equity Index Fund S&P 500, September 2002 Futures........ 123 $ 31,036 $ 30,446 International Equity Index Fund FTSE 100 Index, September 2002 Futures........ 178 8,278 8,282 DJ Euro, September 2002 Futures........ 100 3,075 3,157 Nikkei 225, September 2002 Futures........ 40 2,223 2,107 Dax Index, September 2002 Futures........ 18 1,962 1,990 CAC-40 Index, September 2002 Future......... 15 569 589 Diversified International FTSE 100 Index, Fund......................... September 2002 Futures........ 329 15,269 15,308 DJ Euro, September 2002 Futures........ 219 6,699 6,914 Topix Index, September 2002 Futures........ 70 767,900 713,650
Written Options The Funds may write covered call or secured put options for which premiums received are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options, which are either exercised or closed, are offset against the proceeds received or amount paid on the transaction to determine realized gains or losses. Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 140 Report The following is a summary of option activity for the year ended June 30, 2002, by the Funds (amounts in thousands):
Mid Cap Value Fund Health Sciences Fund -------------------------- -------------------------- Shares Subject Shares Subject Covered Call Options to Contract Premiums to Contract Premiums -------------------- -------------- -------- -------------- -------- Balance at beginning of period.................. 161 $ 138 2 $ 4 Options written................................. 1,591 1,175 11 13 Options closed.................................. (320) (310) -- -- Options expired................................. (1,229) (840) (13) (17) Options exercised............................... (203) (163) -- -- Options outstanding at end of period............ -- $ -- -- $ --
Mid Cap Value Fund Health Sciences Fund -------------------------- -------------------------- Shares Subject Shares Subject Put Options to Contract Premiums to Contract Premiums ----------- -------------- -------- -------------- -------- Balance at beginning of period.................. 60 $ 16 -- $ -- Options written................................. 750 572 6 12 Options closed.................................. (110) (94) -- -- Options expired................................. (700) (494) (6) (12) Options exercised............................... -- -- -- -- Options outstanding at end of period............ -- $ -- -- $ --
Repurchase Agreements The Funds may invest in repurchase agreements with institutions that are deemed by Banc One Investment Advisors Corporation (the "Advisor"), an independent wholly-owned subsidiary of Bank One Corporation, to be of good standing and creditworthy under guidelines established by the Board of Trustees. Each repurchase agreement is recorded at cost. The Fund requires that the securities purchased in a repurchase agreement transaction be transferred to the custodian in a manner sufficient to enable the Fund to obtain those securities in the event of a counterparty default. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds along with certain other affiliates of the Funds, may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements which are fully collateralized by U.S. Treasury or Federal Agency obligations, with counterparties approved by the Board of Directors consistent with the Fund's investment policy. Securities Lending To generate additional income, each Fund may lend up to 33 1/3% of its total assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, or letters of credit as collateral equal at all times to at least 100% of the market value plus accrued interest on the securities lent. The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn interest on the investment of cash collateral, a portion of which is retained by the Advisor. 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 judgment of the Advisor, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and are, therefore, not considered to be illiquid investments. Bank One Trust Company N.A., an affiliate of the Advisor, serves as sub-custodian for the securities lending program for which they receive a fee. Bank One Trust Company, N.A. receives a sub-custody Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 141 Report fee based on the value of collateral received from borrowers. As of June 30, 2002, the following Funds had securities with the following market values on loan (amounts in thousands):
Market Value Market of Loaned Value Fund Securities of Collateral ---- ---------- ------------- Small Cap Growth Fund....................................... $ 39,909 $ 40,716 Small Cap Value Fund........................................ 46,932 47,881 Mid Cap Growth Fund......................................... 141,708 144,572 Mid Cap Value Fund.......................................... 113,523 115,816 Diversified Mid Cap Fund.................................... 59,518 60,720 Large Cap Growth Fund....................................... 81,015 82,650 Large Cap Value Fund........................................ 78,020 79,593 Equity Income Fund.......................................... 20,949 21,372 Diversified Equity Fund..................................... 44,996 45,900 Balanced Fund............................................... 43,496 44,905 Equity Index Fund........................................... 167,803 171,188 Market Expansion Index Fund................................. 4,496 4,587 Technology Fund............................................. 1,662 1,696 Health Sciences Fund........................................ 361 369 International Equity Index Fund............................. 145,931 153,459 Diversified International Fund.............................. 108,276 113,904
The loaned securities were fully collateralized by cash, U.S. government securities, and letters of credit as of June 30, 2002. Cash received as collateral was reinvested in master notes, put bonds, repurchase agreements, and mutual funds in accordance with the Funds' investment policy. Security Transactions and Related Income Security transactions are accounted for on a trade date basis. Net realized gains or losses from sales of securities are determined on the specific identification cost method. Interest income and expenses are recognized on the accrual basis. Dividends are recorded on the ex-dividend date. Interest income includes premium amortization and discount accretion for both financial reporting and tax purposes. Expenses Expenses directly attributable to a Fund are charged directly to that Fund, while the expenses which are attributable to more than one Fund of the Trust are allocated among the respective Funds. Each class of shares bears its pro-rata portion of expenses attributable to its series, except that each class separately bears expenses related specifically to that class, such as distribution fees. Dividends and Distributions to Shareholders Dividends from net investment income are declared and paid quarterly except for the Technology Fund, the Health Sciences Fund, the International Equity Index Fund, and the Diversified International Fund which declare and pay dividends, if any, at least annually and the Equity Income Fund and the Balanced Fund which declare and pay dividends monthly. Dividends are declared separately for each class. No class has preferential rights; differences in per share dividend rates are due to differences in separate class expenses. Net realized capital gains, if any, are distributed at least annually. Distributions from net investment income and from net capital gains are determined in accordance with U.S. income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for expiring capital loss carryforwards, foreign currency transactions, and deferrals of certain losses. Permanent book and tax basis differences have been reclassified among the components of net assets. Certain Funds Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 142 Report also utilized earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. Portfolio Transaction Fees: The International Equity Fund and Diversified International Fund impose a portfolio transaction fee on shares redeemed or exchanged within 90 days of purchase equal to 2.00% of the value of the shares sold or exchanged. This fee, which is not a sales charge, is paid directly to the Fund. The redemption fee does not apply to shares purchased through reinvested distributions (dividends and capital gains) or shares redeemed on a systematic basis. Federal Income Taxes The Funds' policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all their taxable income to shareholders. Therefore, no federal income tax provision is required. 3. Investment Advisory, Administration, and Distribution Agreements: The Trust and the Advisor are parties to an investment advisory agreement under which the Advisor is entitled to a fee, computed daily and paid monthly, at the annual rate of 0.74% of the average daily net assets on the first $1.5 billion, 0.70% of the average daily net assets on the next $500 million, 0.65% of the average daily net assets on the next $3.5 billion, and 0.60% of the average daily net assets over $5.5 billion of the Small Cap Growth Fund, the Small Cap Value Fund, the Mid Cap Growth Fund, the Mid Cap Value Fund, the Diversified Mid Cap Fund, the Large Cap Growth Fund, the Large Cap Value Fund, the Equity Income Fund, and the Diversified Equity Fund; 0.65% of the average daily net assets of the Balanced Fund; 0.30% of the average daily net assets of the Equity Index Fund; 0.35% of the average daily net assets of the Market Expansion Index Fund; 1.00% of the average daily net assets of the Technology Fund; 0.85% of the average daily net assets of the Health Sciences Fund; 0.55% of the average daily net assets of the International Equity Index Fund; and 0.80% of the average daily net assets of the Diversified International Fund. The Trust and One Group Administrative Services, Inc. (the "Administrator"), an affiliate of Bank One Corporation, are parties to an administration agreement under which the Administrator provides services for a fee that is computed daily and paid monthly, at an annual rate of 0.20% on the first $1.5 billion of Trust average daily net assets (excluding the Investor Conservative Growth Fund, the Investor Balanced Fund, the Investor Growth & Income Fund, and the Investor Growth Fund (the "Investor Funds") and the Institutional Prime Money Market Fund, the Treasury Only Money Market Fund, and the Government Money Market Fund (the "Institutional Money Market Funds")); 0.18% on the next $0.5 billion of Trust average daily net assets (excluding the Investor Funds and the Institutional Money Market Funds); and 0.16% of Trust average daily net assets (excluding the Investor Funds and the Institutional Money Market Funds) over $2 billion. On April 1, 2002, One Group Dealer Services, Inc., (the "Distributor"), an affiliate of Bank One Corporation, replaced The One Group Services Company (the "Prior Distributor") as Distributor. The Trust and the Distributor are parties to a distribution agreement under which shares of the Funds are sold on a continuous basis. Class A, Class B, and Class C shares are subject to distribution and shareholder services plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act. As provided in the Plans, the Trust will pay the Distributor a fee of 0.35% of the average daily net assets of Class A shares of each of the Funds and 1.00% of the average daily net assets of the Class B shares and Class C shares of each of the Funds. Currently, the Distributor has agreed to limit payments under the Plans to 0.25% of average daily net assets of the Class A shares of each Fund. For the period ended June 30, 2002, the Distributor and Prior Distributor received $11,270 from commissions earned on sales of Class A shares and redemption of Class B shares and Class C shares, of which, the Distributor re-allowed $3,133 to affiliated broker-dealers of the Funds. Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 143 Report The Advisor, the Administrator and the Distributor have contractually agreed to waive fees and/or reimburse expenses to limit total annual fund operating expenses to the following funds and amounts:
Fund Class I Class A Class B Class C ---- ------- ------- ------- ------- Mid Cap Growth Fund......................................... .99 1.24 1.99 1.99 Large Cap Growth Fund....................................... -- 1.24 -- -- Equity Income Fund.......................................... -- 1.24 -- -- Balanced Fund............................................... .89 1.14 1.89 1.89 Equity Index Fund........................................... .35 .60 1.35 1.35 Market Expansion Index Fund................................. .57 .82 1.57 1.57 Health Science Fund......................................... 1.35 1.60 2.35 2.35 Technology Fund............................................. 1.30 1.55 2.30 2.30 Diversified International Fund.............................. 1.30
Rebates are received by the Funds from the Advisor and the Administrator when the Funds invest in other One Group Money Market Funds. Those rebates effectively reduce the advisory and administrative fees paid by the Funds, and are reflected in waivers on the Statement of Operations. Certain officers of the Trust are affiliated with the Advisor, the Administrator and the Distributor. Such officers receive no compensation from the Funds for serving in their respective roles. The Trust adopted a Trustee Deferred Compensation Plan (the "Plan") which allows the independent Trustees to defer the receipt of all or a portion of compensation related to performance of their duties as a Trustee. The deferred fees are invested in various One Group Mutual Funds until distribution in accordance with the Plan. 4. Securities Transactions: The cost of security purchases and the proceeds from the sale of securities (excluding short-term securities) for the period ended June 30, 2002, were as follows (amounts in thousands):
Fund Purchases Sales ---- ---------- ---------- Small Cap Growth Fund....................................... $ 611,117 $ 470,987 Small Cap Value Fund........................................ 522,236 211,439 Mid Cap Growth Fund......................................... 1,771,733 1,655,039 Mid Cap Value Fund.......................................... 1,527,331 1,409,672 Diversified Mid Cap Fund.................................... 390,494 371,532 Large Cap Growth Fund....................................... 1,911,692 1,870,637 Large Cap Value Fund........................................ 1,727,498 1,855,403 Equity Income Fund.......................................... 101,146 159,527 Diversified Equity Fund..................................... 430,458 268,794 Balanced Fund............................................... 110,235 146,453 Equity Index Fund........................................... 279,120 192,448 Market Expansion Index Fund................................. 64,405 36,695 Technology Fund............................................. 12,929 12,669 Health Sciences Fund........................................ 19,555 9,788 International Equity Index Fund............................. 80,610 81,996 Diversified International Fund.............................. 1,962,878 1,913,139
5. Line of Credit: The Trust, State Street Bank and Trust Company ("State Street"), and a group of banks (collectively, the "Banks") have a financing agreement. Under this agreement, the Banks provide an unsecured committed credit facility in the aggregate amount of $300 million which expires October 15, 2002. The credit facility is allocated, under the terms of the financing agreement, among the Banks. Advances under the agreement are taken primarily for temporary or emergency purposes, Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 144 Report including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. Interest on borrowings is payable at the Federal Funds Rate plus 0.50% on an annualized basis. A commitment fee of 0.10% per annum will be incurred on the unused portion of the committed facility, which is allocated to all funds of the Trust. 6. Federal Tax Information: The following Funds' net long term capital gains designated for federal income tax purposes differs from the amounts below due to utilization of earnings and profits distributed to shareholders on redemption of shares.
Fund Amount ---- ------- Mid Cap Value Fund.......................................... $60,173 Diversified Mid Cap Fund.................................... 52,399 Equity Income Fund.......................................... 37,438 Market Expansion Index Fund................................. 200
The tax character of distributions paid during the fiscal year ended June 30, 2002 was as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.) (amounts in thousands):
Distributions paid from -------------------------- Net Net Total Tax Return Total Investment Long Term Taxable of Distributions Income Capital Gains Distributions Capital Paid ---------- ------------- ------------- ---------- ------------- Small Cap Value Fund........................... $11,731 $14,809 $ 26,540 $-- $ 26,540 Mid Cap Growth Fund............................ -- 7,213 7,213 -- 7,213 Mid Cap Value Fund............................. 66,369 52,683 119,052 -- 119,052 Diversified Mid Cap Fund....................... 1,152 52,206 53,358 -- 53,358 Large Cap Value Fund........................... 8,994 17,052 26,046 -- 26,046 Equity Income Fund............................. 6,701 35,591 42,292 -- 42,292 Diversified Equity Fund........................ 6,917 6,202 13,119 -- 13,119 Balanced Fund.................................. 8,428 -- 8,428 -- 8,428 Equity Index Fund.............................. 23,050 -- 23,050 -- 23,050 Market Expansion Index Fund.................... 121 176 297 -- 297 Health Sciences Fund........................... 36 -- 36 -- 36 International Equity Index Fund................ 5,198 -- 5,198 -- 5,198 Diversified International Fund................. 8,274 -- 8,274 -- 8,274
As of June 30, 2002 the components of accumulated earnings (deficit) on a tax basis was as follows: (The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 145 Report wash sales, the realization for tax purposes of unrealized gains/losses on certain derivative instruments and the difference between book and tax amortization methods for premium and market discount.) (amounts in thousands):
Undistributed Accumulated Undistributed Long-Term Capital Unrealized Ordinary Capital Accumulated Distributions and Other Appreciation/ Income Gains Earnings Payable Losses (Depreciation) ------------- ------------- ----------- ------------- ------------ -------------- Small Cap Growth Fund................ $ -- $ -- $ -- $ -- $ (59,378) $ 16,443 Small Cap Value Fund................ 4,903 32,698 37,601 (990) -- 87,805 Mid Cap Growth Fund... -- -- -- -- (313,571) 32,975 Mid Cap Value Fund.... 1261 69,708 70,969 (1,380) -- 117,019 Diversified Mid Cap Fund................ -- -- -- (54) (11,546) 100,148 Large Cap Growth Fund................ -- -- -- -- (910,139) 245,111 Large Cap Value Fund................ 2,432 -- 2,432 (2,523) (57,058) (58,206) Equity Income Fund.... 443 15,336 15,779 (492) -- 225,401 Diversified Equity Fund................ 1,825 -- 1,825 (1,958) (47,504) 38,248 Balanced Fund......... 672 -- 672 (630) (12,547) 3,841 Equity Index Fund..... 6,695 -- 6,695 (6,804) (133,624) 523,820 Market Expansion Index Fund................ 16 178 194 (21) -- 3,497 Technology Fund....... -- -- -- -- (19,495) (27,538) Health Sciences Fund................ -- -- -- -- (1,347) (2,106) International Equity Index Fund.......... 1,774 -- 1,774 -- (32,596) (10,357) Diversified International Fund................ 574 -- 574 -- (36,668) (26,220) Total Accumulated Earnings/ (Deficit) ----------- Small Cap Growth Fund................ $ (42,935) Small Cap Value Fund................ 124,416 Mid Cap Growth Fund... (280,596) Mid Cap Value Fund.... 186,608 Diversified Mid Cap Fund................ 88,548 Large Cap Growth Fund................ (665,028) Large Cap Value Fund................ (115,355) Equity Income Fund.... 240,688 Diversified Equity Fund................ (9,389) Balanced Fund......... (8,664) Equity Index Fund..... 390,087 Market Expansion Index Fund................ 3,652 Technology Fund....... (47,033) Health Sciences Fund................ (3,453) International Equity Index Fund.......... (41,179) Diversified International Fund................ (62,314)
As of June 30, 2002, the following Funds had net capital loss carryforwards, which are available to offset future realized gains (amounts in thousands):
Expires --------------------------- Fund 2008 2009 2010 Total ---- ------ ------- -------- -------- Small Cap Growth Fund....................................... $ -- $ -- $ 48,408 $ 48,408 Mid Cap Growth Fund......................................... -- -- 177,795 177,795 Large Cap Growth Fund....................................... -- -- 646,410 646,410 Large Cap Value Fund........................................ -- -- 14,313 14,313 Diversified Equity Fund..................................... -- -- 1,058 1,058 Balanced Fund............................................... 2,689 -- 246 2,935 Equity Index Fund........................................... -- 26,844 55,761 82,605 Technology Fund............................................. -- -- 12,215 12,215 Health Sciences Fund........................................ -- -- 207 207 International Equity Index Fund............................. -- -- 19,034 19,034 Diversified International Fund.............................. -- 9,658 25,779 35,437
Continued Equity Funds Annual Report -------------------------------------------------------------------------------- Notes to Financial Statements, continued ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 146 Report Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. For the period ended June 30, 2002, the Funds deferred to July 1, 2002 post October capital losses of (amounts in thousands):
Capital Losses -------------- Small Cap Growth Fund....................................... $ 10,970 Mid Cap Growth Fund......................................... 135,776 Diversified Mid Cap Fund.................................... 11,546 Large Cap Growth Fund....................................... 263,729 Large Cap Value Fund........................................ 42,745 Diversified Equity Fund..................................... 46,466 Balanced Fund............................................... 9,613 Equity Index Fund........................................... 51,019 Technology Fund............................................. 7,279 Health Sciences Fund........................................ 1,140 International Equity Index Fund............................. 13,562 Diversified International Fund.............................. 1,231
Eligible Distributions: The Trust designates the following percentage of distributions eligible for the dividends received deductions for corporations.
Fund Amount ---- ------ Small Cap Value Fund........................................ 50% Mid Cap Value Fund.......................................... 32 Diversified Mid Cap Fund.................................... 100 Large Cap Value Fund........................................ 100 Equity Income Fund.......................................... 100 Diversified Equity Fund..................................... 100 Balanced Fund............................................... 43 Equity Index Fund........................................... 100 Market Expansion Index Fund................................. 98 Health Sciences Fund........................................ 25
The International Equity Fund and the Diversified International Fund intend to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per outstanding share on June 30, 2002, are as follows (unaudited):
Foreign Source Foreign Tax Fund Income Expense ---- -------------- ----------- International Equity Index Fund............................. 0.25 0.03 Diversified International Fund.............................. 0.22 0.02
The pass-through of the foreign tax credit will only affect those persons who are shareholders on the dividend record date in December 2002. These shareholders will receive more detailed information along with their 2002 Form 1099-DIV. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 147 Report -------------------------------------------------------------------------------- Equity Funds Annual Report -------------------------------------------------------------------------------- Report of Independent Accountants To the Board of Trustees and Shareholders of the One Group Mutual Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Small Cap Growth Fund, the Small Cap Value Fund, the Mid Cap Growth Fund, the Mid Cap Value Fund, the Diversified Mid Cap Fund, the Large Cap Growth Fund, the Large Cap Value Fund, the Equity Income Fund, the Diversified Equity Fund, the Balanced Fund, the Equity Index Fund, the Market Expansion Index Fund, the Technology Fund, the Health Sciences Fund, the International Equity Index Fund and the Diversified International Fund (sixteen series of One Group Mutual Funds, hereafter referred to as the "Funds") at June 30, 2002, the results of each of their operations for the year then ended, the changes in each of their net assets for the two years then ended and the financial highlights for each of the periods presented (other than those financial highlights that have been audited by other independent accountants), in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of the Small Cap Value Fund, the Diversified Mid Cap Fund, the Market Expansion Index Fund and the Diversified International Fund for all periods ended on or before December 31, 1998 were audited by other independent accountants whose report dated February 12, 1999 expressed an unqualified opinion on those financial highlights. PricewaterhouseCoopers LLP Chicago, Illinois August 14, 2002 ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 148 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Trustees
Name and Address(1) Birthdate Other Time Served Directorships with the Trust Principal Occupation During the Past Five Years Held by Trustee -------------------- ------------------------------------------------------------ --------------- Peter C. Marshall From March 2002 until present, self-employed as a business None 12/10/42 consultant. From March 2000 to February 2002, Senior Vice 5/16/94 - present President, W.D. Hoard, Inc. (corporate parent of DCI Marketing, Inc.). From November 1993 to March 2000, President DCI Marketing, Inc. Since July 1986, self-employed as a business consultant. None Charles I. Post 2/10/28 5/16/94 - present Since April 2000, advisor, Jerome P. Green & Associates, LLP None Frederick W. Ruebeck (a broker-dealer). From January 2000 to April 2000, 10/8/39 self-employed as a consultant. From June 1988 to December 5/16/94 - present 1999, Director of Investments, Eli Lilly and Company. Since 1995, President, Kenyon College. None Robert A. Oden, Jr. 9/11/46 6/25/97 - present Since 1975, President of Gardner, Inc. (wholesale Director, John F. Finn distributor to outdoor power equipment industry). Cardinal Health 11/5/47 5/21/98 - present Since 1985, Vice President of Administration and Planning, None Marilyn McCoy Northwestern University. 3/18/48 4/28/99 - present Since 1994, President, J.L. Pallone Associates (insurance None Julius L. Pallone consultant). 5/26/30 4/28/99 - present Since 1995, Vice President, Association for Investment None Donald L. Tuttle Management and Research. 10/6/34 4/28/99 - present
------------ (1) The address of each Trustee is 1111 Polaris Parkway, Columbus, OH 43240. As of June 30, 2002, there were 57 portfolios within the Fund complex. ONE GROUP MUTUAL FUNDS Equity Funds Annual Report June 30, 2002 149 Report Equity Funds Annual Report -------------------------------------------------------------------------------- Officers
Name and Address(1) Birthdate Position Held and Time Served with the Trust Principal Occupation During the Past Five Years -------------------------- ------------------------------------------------------------ Mark A. Beeson From November 2001 until present, Chief Financial Officer of 11/13/57 Banc One Investment Management Group and Senior Managing President Director of Banc One Investment Advisors Corporation. From 1/1/00 - present October 1999 to present, Chief Executive Officer and President, One Group Administrative Services, Inc. and Chief Executive Officer and President, One Group Dealer Services, Inc.; August 1994 to October 1999, Senior Managing Director, Banc One Investment Advisors Corporation. From November 2001 until present, Senior Managing Director Robert L. Young and Chief Operating Officer of One Group Mutual Funds for 1/17/63 Banc One Investment Management Group. From October 1999 to Vice President present, Vice President and Treasurer, One Group and Treasurer Administrative Services, Inc., and Vice President and 1/1/00 - present Treasurer, One Group Dealer Services, Inc.; December 1996 to October 1999, Managing Director of Mutual Fund Administration, Banc One Investment Advisors Corporation. From January 2000 to present, First Vice President and Michael V. Wible Counsel, Bank One Corporation; September 1994 to January 9/15/62 2000, Counsel to Bank One Corporation. Secretary 1/1/00 - present From October 1999 to present, Director Mutual Fund Financial Gary R. Young Administration, One Group Administrative Services, Inc.; 8/19/69 December 1998 to October 1999, Director, Mutual Fund Assistant Treasurer and Financial Administration, Banc One Investment Advisors Assistant Secretary Corporation; January 1995 to December 1998, Vice President 1/1/00 - present and Manager of Mutual Fund Accounting, Custody and Financial Administration, First Chicago NBD Corporation. From January 2000 to present, First Vice President and Jessica K. Ditullio Counsel, Bank One Corporation; August 1990 to January 2000, 9/19/62 Counsel, Bank One Corporation. Assistant Secretary 1/1/00 - present From October 1999 to present, Director, Mutual Fund Nancy E. Fields Administration, One Group Administrative Services, Inc. and 6/22/49 Senior Project Manager, Mutual Funds, One Group Dealer Assistant Secretary Services, Inc.; July 1999 to October 1999, Project Manager, 1/1/00 - present One Group, Banc One Investment Advisors; January 1998 to July 1999, Vice President, Ohio Bankers Association; July 1990 through December 1997, Vice President, Client Services, BISYS Fund Services, Inc.
------------ (1) The address of each Officer is 1111 Polaris Parkway, Columbus, OH 43240. As of June 30, 2002, there were 57 portfolios within the Fund complex. [One Group Logo] One Group Mutual Funds are distributed by One Group Dealer Services, Inc., which is an affiliate of Bank One Corporation. Affiliates of Bank One Corporation receive fees for providing various services to the Funds. Call Investor Services at The One Group Sales and Service Center at 1-800-480-4111 for a prospectus containing complete information about charges and expenses. Read carefully before investing. Past performance is no guarantee of future results. [Bank One Logo] Banc One Investment Advisors Corporation TOG-F-038-AN (8/02)