UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-03015
Ohio National Fund, Inc.
(Exact name of registrant as specified in charter)
One Financial Way, Cincinnati, Ohio
| 45242 | |
(Address of principal executive offices) | (Zip Code) |
CT Corporation 300 E. Lombard St., Suite 1400 Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code:513-794-6971
Date of fiscal year end: December 31
Date of reporting period: December 31, 2018
FormN-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1.Reports To Stockholders.
Message
Dear Investor:
Following a reset of economic expectations in February 2018 associated with rising rates, globally diversified portfolios gained ground with very low volatility through September. In October, concerns over a trade war with China triggered asell-off and a spike in volatility that carried through the end of the year. This decline played out in spite of a fairly strong domestic economy.
The U.S. economy posted 3.0 percent Gross Domestic Product (GDP) growth in 2018 bolstered by tax cuts and strong corporate profits. The labor market remained tight, with the unemployment rate dropping to 3.9 percent by year end. Consumer confidence also remained strong, hitting an eighteen year high during the fourth quarter.
Market participants had many concerns with a continued focus on slowing global growth from tariffs, the potential for a longer trade war with China, and the risk that the Federal Reserve would continue to raise short term interest rates aggressively in 2019. Geopolitical risk in the Middle East and Asia as well as the possibility of a poorly executed Brexit also weighed on the markets. Lastly, higher long-term interest rates, along with a divided U.S. government, also contributed to investors’ concerns.
Equity Markets
Most major equity indices posted negative returns in 2018. The S&P 500® Index, which is a large cap domestic index, provided a-4.4 percent total return for the year. However, large cap stocks substantially outperformedmid-cap and small cap stocks, as illustrated in the table below. The S&P MidCap 400® Index posted a total return of-11.1 percent, while the Russell 2000® Index of small cap stocks posted a total return of-11.0 percent. Growth stocks outperformed value stocks again in 2018, as shown by the
Michael J. DeWeirdt, CFA, FRM | Gary R. Rodmaker, CFA, FLMI | |
President, Ohio National Fund, Inc. | President, Ohio National Investments, Inc. |
S&P 500® Growth Index, providing a total return of 0.0 percent, compared to the S&P 500® Value Index total return of-9.0 percent. Foreign and emerging market stocks provided the least favorable returns in 2018. The MSCI All Country Worldex-US Index (Net – USD) posted a total return of-14.2 percent, while the MSCI Emerging Markets Index posted a total return of-14.4 percent for the year.
A summary of returns for several key equity benchmarks is presented below:
Index | 2018 U.S. Dollar Total Return (price and dividend) | |||
S&P 500® | -4.4% | |||
S&P 500®Growth | 0.0% | |||
S&P 500®Value | -9.0% | |||
S&P MidCap 400® | -11.1% | |||
Russell 2000®Small Cap | -11.0% | |||
MSCI All Country WorldEx-USA (Net – USD) | -14.2% | |||
MSCI Emerging Markets | -14.4% |
The variability of returns in the above table serves as a very good reminder of why it is important to remain diversified. Diversification among asset classes tends to smooth returns and lower volatility over time.
Fixed Income Markets
Bond returns were mixed in 2018, but fell into a much tighter range than stocks. The Federal Reserve increased the Federal Funds rate four times in 2018, for a total of 100 basis points, or 1.0 percent. Longer term interest rates also increased, albeit less than the Federal Funds rate. As a result, the interest rate curve continued to flatten
1
between the2-year and30-year Treasury rates. Credit spreads widened throughout the year, as investors became more concerned about growing corporate debt and the prospect of slowing growth in the economy.
The Bloomberg Barclays US Aggregate Bond Index posted a total return of 0.0 percent in 2018. Higher quality indices, like the Bloomberg Barclays US Treasury Index and the Bloomberg Barclays Securitized Index provided modestly positive total returns of 0.9 percent and 1.0 percent, respectively. However, credit sensitive indices such as the Bloomberg Barclays Corporate Index and Bloomberg Barclays US Corporate High Yield Index provided negative total returns of-2.5 percent and-2.1 percent, respectively. The table below illustrates the returns of the various indices.
Index | 2018 U.S. Dollar Total Return (price and interest) | |||
Bloomberg Barclays US Aggregate | 0.0% | |||
Bloomberg Barclays US Treasury | 0.9% | |||
Bloomberg Barclays Securitized | 1.0% | |||
Bloomberg Barclays Corporate | -2.5% | |||
Bloomberg Barclays US Corporate High Yield | -2.1% |
Looking Ahead
Entering 2019, the U.S. economy remains strong and corporate profitability is expected to continue to grow, albeit at a slower pace than in 2018. Unemployment is low,
consumer confidence is high, and inflation remains under control. The Federal Reserve has expressed a less hawkish tone, which decreases the likelihood of a policy misstep in the near term. Lastly, equity market valuations are more attractive entering 2019, following the equity market declines that occurred in the fourth quarter of 2018. These items provide a positive backdrop for financial markets in 2019.
While there are many positives, financial markets are not without risk in 2019. Tariffs and trade tensions continue with China and others. Global growth is slowing, and we are late in the U.S. economic cycle. While the Federal Reserve has paused additional rate hikes in the short term, evidence of inflation could cause them to reconsider. We expect this menu of trigger items to lead to periods of heightened volatility. In this environment, we believe staying the course in a well-diversified portfolio will serve investors well over the long term.
Thank you for entrusting your assets to the Ohio National Fund, Inc. We look forward to continuing to serve your financial needs.
2
Ohio National Fund, Inc. | ON Equity Portfolio (Unaudited) |
Objective/Strategy |
The ON Equity Portfolio (formerly the Equity Portfolio) seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in equity securities.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -13.82% | |||
Five years | 4.12% | |||
Ten years | 10.95% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.80% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Equity Portfolio returned-13.82% versus-4.38% for its benchmark, the S&P 500 Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.It was a tale of two markets in 2018. The S&P 500 Index generated a total return of more than 10% through September, led by the Information Technology (“IT”), Consumer Discretionary and Health Care sectors. Strong gross domestic product (“GDP”) growth, low unemployment, gently rising wages and cycle-high consumer confidence created a good environment for discretionary spending. With the exception of a market correction in February, the market behaved much like it did in 2017, with shorter-term momentum and passive strategies rewarded. Our investment discipline, which is longer-term, valuation-driven and focused on buying stocks when prices are below business value, and subsequent convergence of price and value was not optimal for this market. We had positioned the Portfolio to benefit from improving fundamentals in Financials and Energy. Energy did not benefit when oil prices rallied strongly, however, and Financials did not enjoy higher interest rates, as historic correlations and fundamental logic would suggest.
From its late-September peak, the S&P 500 fell 14%, while the NASDAQ Composite fell over 16%. Rising interest rates and suggestions that the Federal Reserve would continue unwinding its multi-trillion-dollar balance sheet pressured the stocks of many highly leveraged companies. After peaking in September, the bellwether IT companies led the market down in October. While the market steadied somewhat in November, when U.S. midterm elections produced a split Congress, viewed as more conducive to stable policy, this was short-lived. Byyear-end, fears of slowing economic growth negatively impacted investor sentiment, resulting in further declines. Toward the end of the
year, as investors’ risk appetite decreased, interest turned from cyclical IT and Consumer Discretionary sectors toward more traditional income sectors such as Utilities, Real Estate, and Consumer Staples. Our overweight to Utilities benefited from this, while our underweight to Consumer Staples dampened results. The Energy sector, meanwhile, fell as oil prices dropped to their lowest levels in a year, and the Portfolio’s Energy overweight did not find relief. In the intermediate term, however, we believe oil will be in undersupply unless capital expenditures increase materially. As such, we believe oil prices will find support, and price and value in the Energy sector will converge.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Relative to the benchmark, stock selection was the main detractor from performance. In particular, stock selection in the Health Care, Consumer Discretionary and Financials sectors dampened relative returns. Overweights to Energy and Financials and an underweight to IT also hurt relative performance. Meanwhile, stock selection in the Materials, Utilities and Communication Services sectors, and an overweight allocation to Utilities, contributed positively to relative results.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.XL Group Ltd. (“XL”), a property and casualty insurer in the Financials sector, was acquired by insurance giant AXA SA at a 50% premium to its stock price before the M&A speculation surfaced. We took advantage of the low valuation when the stock suffered an operating loss in 2017 due to large catastrophe losses. We saw value in XL’s global leadership in the commercial insurance and reinsurance markets, given its specialty focus and the highly valuable Lloyd’s franchise.(1)
AES Corp. (“AES”), in the Utilities sector, is starting to enjoy the full benefits from its pivot to faster-growing renewable energy projects, while also paying down debt and reducing costs. The result is a major reduction in AES’s risk profile, which will culminate in investment grade metrics by next year. At the same time, the earnings and cash flow growth has been steadily improving, which is fully supporting its 3.6% dividend yield. These fundamental improvements, along with the major risk reduction, should continue to close the gap between price and a higher and growing business value.(1)
Adient PLC, in the Consumer Discretionary sector, was the top detractor. The company reported a poor first fiscal quarter in 2018, with earnings below consensus and lowered guidance for 2018. Adient PLC later showed improvements in its beleaguered seat structures/mechanisms and metals business, but earnings expectations continued to drop. We exited the position during the fourth quarter.(1)
Synchrony Financial (“Synchrony”), in the Financials sector, was another top detractor. The company is a private label credit card issuer that works with retailers and affinity groups. Synchrony lost a19-year partnership with Walmart, Inc. (“Walmart”) during the second quarter of 2018, although its core business is performing well. Given the low profitability of the Walmart relationship and substantial capital freed up, losing the contract is in fact earnings per share neutral, belying the sharply negative reaction in the stock. We believe Synchrony’s share price is still well below business value. Additionally, Synchrony has ample excess capital that should allow it to pay out 100% or more of
3 | (continued) |
Ohio National Fund, Inc. | ON Equity Portfolio (Unaudited) (Continued) |
earnings to shareholders for years and grow at a premium to the industry. We remain positive on the stock, which is currently one of our highest-conviction names in the Financials sector.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P 500 Index is a capitalization-weighted index designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 84.2 | |||
Preferred Securities(4) | 0.8 | |||
Money Market Funds and Other Net Assets | 15.0 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Alphabet, Inc. Class C | 5.4 | ||||
2. | Microsoft Corp. | 4.1 | ||||
3. | Oracle Corp. | 3.9 | ||||
4. | Allergan PLC | 3.2 | ||||
5. | Kinder Morgan, Inc. | 3.1 | ||||
6. | Wells Fargo & Co. | 3.0 | ||||
7. | Alexion Pharmaceuticals, Inc. | 2.9 | ||||
8. | Exelon Corp. | 2.8 | ||||
9. | American International Group, Inc. | 2.8 | ||||
10. | Intercontinental Exchange, Inc. | 2.5 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Preferred Securities): |
% of Net Assets | ||||
Financials | 15.6 | |||
Health Care | 15.3 | |||
Information Technology | 14.0 | |||
Energy | 8.6 | |||
Industrials | 6.4 | |||
Communication Services | 6.2 | |||
Consumer Discretionary | 5.8 | |||
Utilities | 5.0 | |||
Consumer Staples | 3.2 | |||
Real Estate | 2.5 | |||
Materials | 2.4 | |||
|
| |||
85.0 | ||||
|
|
4
Ohio National Fund, Inc. | ON Equity Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 84.2% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 6.2% |
| |||||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 13,434 | $ | 13,912,385 | |||||||
Facebook, Inc. Class A (Interactive Media & Svs.) | (a | ) | 15,876 | 2,081,185 | ||||||||
|
| |||||||||||
15,993,570 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 5.0% |
| |||||||||||
AutoZone, Inc. (Specialty Retail) | (a | ) | 7,179 | 6,018,443 | ||||||||
General Motors Co. (Automobiles) | 77,030 | 2,576,653 | ||||||||||
Lennar Corp. Class A (Household Durables) | 58,027 | 2,271,757 | ||||||||||
Melco Resorts & Entertainment Ltd. – ADR (Hotels, Restaurants & Leisure) | 121,201 | 2,135,562 | ||||||||||
|
| |||||||||||
13,002,415 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 3.2% |
| |||||||||||
Anheuser-Busch InBev SA / N.V. – ADR (Beverages) | 50,012 | 3,291,290 | ||||||||||
Mondelez International, Inc. Class A (Food Products) | 121,754 | 4,873,812 | ||||||||||
|
| |||||||||||
8,165,102 | ||||||||||||
|
| |||||||||||
ENERGY – 8.6% |
| |||||||||||
Devon Energy Corp. (Oil, Gas & Consumable Fuels) | 132,929 | 2,996,219 | ||||||||||
Encana Corp. (Oil, Gas & Consumable Fuels) | 375,415 | 2,169,899 | ||||||||||
Halliburton Co. (Energy Equip. & Svs.) | 69,549 | 1,848,612 | ||||||||||
Kinder Morgan, Inc. (Oil, Gas & Consumable Fuels) | 520,373 | 8,003,337 | ||||||||||
Pioneer Natural Resources Co. (Oil, Gas & Consumable Fuels) | 25,414 | 3,342,449 | ||||||||||
Plains GP Holdings LP Class A (Oil, Gas & Consumable Fuels) | 184,127 | 3,700,953 | ||||||||||
|
| |||||||||||
22,061,469 | ||||||||||||
|
| |||||||||||
FINANCIALS – 15.6% |
| |||||||||||
American International Group, Inc. (Insurance) | 182,114 | 7,177,113 | ||||||||||
Brighthouse Financial, Inc. (Insurance) | (a | ) | 78,514 | 2,393,107 | ||||||||
Citigroup, Inc. (Banks) | 84,454 | 4,396,675 | ||||||||||
Intercontinental Exchange, Inc. (Capital Markets) | 84,152 | 6,339,170 | ||||||||||
MetLife, Inc. (Insurance) | 96,871 | 3,977,523 | ||||||||||
Synchrony Financial (Consumer Finance) | 227,723 | 5,342,382 | ||||||||||
Voya Financial, Inc. (Diversified Financial Svs.) | 72,380 | 2,905,333 | ||||||||||
Wells Fargo & Co. (Banks) | 167,680 | 7,726,694 | ||||||||||
|
| |||||||||||
40,257,997 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 15.3% |
| |||||||||||
Alexion Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 77,869 | 7,581,326 | ||||||||
Allergan PLC (Pharmaceuticals) | 61,640 | 8,238,802 | ||||||||||
Biogen, Inc. (Biotechnology) | (a | ) | 5,974 | 1,797,696 | ||||||||
Bristol-Myers Squibb Co. (Pharmaceuticals) | 46,370 | 2,410,313 | ||||||||||
Celgene Corp. (Biotechnology) | (a | ) | 55,330 | 3,546,100 | ||||||||
Merck & Co., Inc. (Pharmaceuticals) | 75,671 | 5,782,021 | ||||||||||
Mylan N.V. (Pharmaceuticals) | (a | ) | 190,014 | 5,206,383 | ||||||||
Universal Health Services, Inc. Class B (Health Care Providers & Svs.) | 41,853 | 4,878,386 | ||||||||||
|
| |||||||||||
39,441,027 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 6.4% |
| |||||||||||
ABB Ltd. – ADR (Electrical Equip.) | 63,150 | 1,200,481 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS (continued) |
| |||||||||||
C.H. Robinson Worldwide, Inc. (Air Freight & Logistics) | 44,462 | $ | 3,738,810 | |||||||||
Delta Air Lines, Inc. (Airlines) | 84,759 | 4,229,474 | ||||||||||
Fluor Corp. (Construction & Engineering) | 74,746 | 2,406,821 | ||||||||||
KION Group AG (Machinery) | (b | ) | 29,979 | 1,524,543 | ||||||||
Owens Corning (Building Products) | 42,267 | 1,858,903 | ||||||||||
Safran SA (Aerospace & Defense) | (b | ) | 13,093 | 1,570,308 | ||||||||
|
| |||||||||||
16,529,340 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 14.0% |
| |||||||||||
Cisco Systems, Inc. (Communications Equip.) | 96,368 | 4,175,625 | ||||||||||
International Business Machines Corp. (IT Svs.) | 36,433 | 4,141,339 | ||||||||||
Microsoft Corp. (Software) | 104,087 | 10,572,117 | ||||||||||
NetApp, Inc. (Tech. Hardware, Storage & Periph.) | 51,137 | 3,051,345 | ||||||||||
Oracle Corp. (Software) | 219,783 | 9,923,203 | ||||||||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 76,908 | 4,376,834 | ||||||||||
|
| |||||||||||
36,240,463 | ||||||||||||
|
| |||||||||||
MATERIALS – 2.4% |
| |||||||||||
Royal Gold, Inc. (Metals & Mining) | 72,709 | 6,227,526 | ||||||||||
|
| |||||||||||
REAL ESTATE – 2.5% |
| |||||||||||
American Homes 4 Rent Class A (Equity REIT) | 190,076 | 3,773,009 | ||||||||||
Realogy Holdings Corp. (Real Estate Mgmt. & Development) | 187,405 | 2,751,105 | ||||||||||
|
| |||||||||||
6,524,114 | ||||||||||||
|
| |||||||||||
UTILITIES – 5.0% |
| |||||||||||
AES Corp. (Ind. Power & Renewable Elec.) | 380,517 | 5,502,276 | ||||||||||
Exelon Corp. (Electric Utilities) | 162,669 | 7,336,372 | ||||||||||
|
| |||||||||||
12,838,648 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $222,317,128) |
| $ | 217,281,671 | |||||||||
|
|
Preferred Securities – 0.8% | Rate | Quantity | Value | |||||||||||||
CONSUMER DISCRETIONARY – 0.8% |
| |||||||||||||||
Volkswagen AG (Automobiles) | (b | ) | (c | ) | 12,267 | $ | 1,956,040 | |||||||||
|
| |||||||||||||||
Total Preferred Securities (Cost $2,085,357) |
| $ | 1,956,040 | |||||||||||||
|
| |||||||||||||||
Money Market Funds – 6.9% | Shares | Value | ||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (d | ) | 17,838,069 | $ | 17,836,286 | |||||||||||
|
| |||||||||||||||
Total Money Market Funds (Cost $17,836,286) |
| $ | 17,836,286 | |||||||||||||
|
| |||||||||||||||
Total Investments – 91.9% (Cost $242,238,771) | (e | ) | $ | 237,073,997 | ||||||||||||
Other Assets in Excess of Liabilities –8.1% | 20,879,991 | |||||||||||||||
|
| |||||||||||||||
Net Assets – 100.0% | $ | 257,953,988 | ||||||||||||||
|
|
5 | (continued) |
Ohio National Fund, Inc. | ON Equity Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $5,050,891 or 2.0% of the Portfolio’s net assets. |
(c) | Payout is the rate of the company’s ordinary common stock dividend per share + 6 cents per share. |
(d) | Rate represents theseven-day yield at December 31, 2018. |
(e) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
6
Ohio National Fund, Inc. | ON Bond Portfolio (Unaudited) |
Objective/Strategy |
The ON Bond Portfolio (formerly the Bond Portfolio) seeks to obtain a high level of income and opportunity for capital appreciation consistent with the preservation of capital by investing, under normal circumstances, at least 80% of its assets in corporate debt securities.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -3.08 | % | ||
Five years | 2.86 | % | ||
Ten years | 5.33 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.63% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Bond Portfolio returned-3.08% versus-2.24% for its benchmark, the ICE BofA Merrill Lynch U.S. Corporate Master Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.Interest rates increased and the yield curve flattened during the period, as short term interest rates increased more than long term interest rates. In addition, credit spreads widened during the year. In this environment, shorter duration, high quality bonds outperformed longer duration, lower quality bonds. The Portfolio was positioned with a slightly lower duration than the benchmark for most of the year, which benefited relative performance. The Portfolio was also positioned with slightly lower credit quality than the benchmark, which detracted from relative performance, particularly during the fourth quarter, when volatility increased.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.The Portfolio benefited from being underweight in the Consumer Staples sector, while its overweight to the Materials sector detracted from performance. The Portfolio’s exposure to lower quality bonds also detracted from performance during the period. No other sector allocation materially impacted performance. The Portfolio benefited from
security selection in the Utilities, Communication Services, and Industrials sectors, while security selection in the Consumer Staples, Materials, and Energy sectors detracted from performance.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The top three contributors to the Portfolio’s performance relative to the benchmark were Noble Holding International Ltd 7.950% due 2025 (“Noble”), Union Pacific Corp. 4.500% due 2048 (“Union Pacific”), and Spectra Energy Capital LLC 3.300% due 2023 (“Spectra”). Noble benefited from higher oil prices in 2018, which caused its credit spread to tighten. Union Pacific benefited from tightening credit spreads and lower interest rates during the time it was held in the portfolio. Spectra bonds were called at a premium during the year.(1)
The three top detractors to the Portfolio’s performance relative to the benchmark were BAT Capital Corp. 4.390% due 2037, General Motors Co. 5.000% due 2035, and Anheuser-Busch Cos. LLC / Anheuser-Busch InBevWorldwide, Inc. 4.700% due 2036. Each of these bonds is a longer duration bond, which performed poorly with higher interest rates, and experienced spread widening during the period.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The ICE BofA Merrill Lynch U.S. Corporate Master Index tracks the performance of all U.S. dollar-denominated, investment grade corporate public debt issued in the U.S. domestic bond market. Qualifying bonds must have an investment grade rating (based on an average of Moody’s, S&P, and Fitch). In addition, qualifying securities must have at least one year remaining term to maturity, a fixed coupon schedule, and a minimum amount outstanding of $250 million.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
7 | (continued) |
Ohio National Fund, Inc. | ON Bond Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Corporate Bonds(4) | 95.8 | |||
Asset-Backed Securities(4) | 2.8 | |||
Sovereign Issues | 1.1 | |||
Money Market Funds | ||||
Less Net Liabilities | 0.3 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Deutsche Bank AG | 1.9 | ||||
2.700%, 07/13/2020 | ||||||
2. | Aircastle Ltd. | 1.5 | ||||
4.125%, 05/01/2024 | ||||||
3. | Northrop Grumman Corp. | 1.4 | ||||
2.930%, 01/15/2025 | ||||||
4. | Martin Marietta Materials, Inc. | 1.4 | ||||
3.500%, 12/15/2027 | ||||||
5. | American Airlines2015-1 Class B Pass Through Trust | 1.2 | ||||
3.700%, 05/01/2023 | ||||||
6. | Expedia Group, Inc. | 1.2 | ||||
5.000%, 02/15/2026 | ||||||
7. | PNC Bank N.A. | 1.2 | ||||
4.050%, 07/26/2028 | ||||||
8. | CVS Health Corp. | 1.2 | ||||
4.100%, 03/25/2025 | ||||||
9. | Netflix, Inc. | 1.1 | ||||
5.875%, 11/15/2028 | ||||||
10. | NextEra Energy Capital Holdings, Inc. | 1.1 | ||||
2.800%, 01/15/2023 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Corporate Bonds, Asset-Backed Securities): |
% of Net Assets | ||||
Financials | 28.4 | |||
Energy | 12.9 | |||
Materials | 10.2 | |||
Industrials | 8.6 | |||
Utilities | 7.8 | |||
Real Estate | 7.3 | |||
Consumer Discretionary | 6.9 | |||
Consumer Staples | 5.4 | |||
Communication Services | 4.6 | |||
Health Care | 3.8 | |||
Information Technology | 2.7 | |||
|
| |||
98.6 | ||||
|
|
8
Ohio National Fund, Inc. | ON Bond Portfolio |
Schedule of Investments | December 31, 2018 |
Corporate Bonds – 95.8% | Rate | Maturity | Face Amount | Value | ||||||||||||||
COMMUNICATION SERVICES – 4.6% | ||||||||||||||||||
21st Century Fox America, Inc. (Entertainment) | 4.500% | 02/15/2021 | $1,250,000 | $ | 1,283,322 | |||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | QL + 118 | 06/12/2024 | 2,000,000 | 1,939,984 | ||||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 3.400% | 05/15/2025 | 900,000 | 846,013 | ||||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 4.900% | 08/15/2037 | 1,000,000 | 933,368 | ||||||||||||||
Discovery Communications LLC (Media) | 4.375% | 06/15/2021 | 1,000,000 | 1,017,588 | ||||||||||||||
Discovery Communications LLC (Media) | 3.950% | 03/20/2028 | 900,000 | 835,009 | ||||||||||||||
Netflix, Inc. (Entertainment) | (a) | 5.875% | 11/15/2028 | 3,000,000 | 2,923,290 | |||||||||||||
Sirius XM Radio, Inc. (Media) | (a) | 5.375% | 04/15/2025 | 1,000,000 | 947,500 | |||||||||||||
Time Warner Cable LLC (Media) | 6.550% | 05/01/2037 | 850,000 | 873,130 | ||||||||||||||
Verizon Communications, Inc. (Diversified Telecom. Svs.) | 3.850% | 11/01/2042 | 425,000 | 368,063 | ||||||||||||||
|
| |||||||||||||||||
11,967,267 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER DISCRETIONARY – 6.9% | ||||||||||||||||||
Alibaba Group Holding Ltd. (Internet & Direct Marketing Retail) | 3.400% | 12/06/2027 | 2,000,000 | 1,850,410 | ||||||||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | 3.875% | 08/22/2037 | 900,000 | 874,879 | ||||||||||||||
Booking Holdings, Inc. (Internet & Direct Marketing Retail) | 3.550% | 03/15/2028 | 3,000,000 | 2,810,299 | ||||||||||||||
Dollar General Corp. (Multiline Retail) | 4.125% | 05/01/2028 | 2,000,000 | 1,942,077 | ||||||||||||||
Expedia Group, Inc. (Internet & Direct Marketing Retail) | 5.000% | 02/15/2026 | 3,000,000 | 3,031,815 | ||||||||||||||
General Motors Co. (Automobiles) | 5.000% | 04/01/2035 | 900,000 | 765,912 | ||||||||||||||
Hasbro, Inc. (Leisure Products) | 3.500% | 09/15/2027 | 2,000,000 | 1,855,512 | ||||||||||||||
L Brands, Inc. (Specialty Retail) | 5.250% | 02/01/2028 | 1,000,000 | 855,000 | ||||||||||||||
Lear Corp. (Auto Components) | 3.800% | 09/15/2027 | 3,000,000 | 2,741,938 | ||||||||||||||
Magna International, Inc. (Auto Components) | 3.625% | 06/15/2024 | 1,000,000 | 1,004,264 | ||||||||||||||
|
| |||||||||||||||||
17,732,106 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER STAPLES – 5.4% | ||||||||||||||||||
Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Beverages) | (a) | 4.700% | 02/01/2036 | 2,000,000 | 1,862,385 | |||||||||||||
Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Beverages) | (a) | 4.900% | 02/01/2046 | 1,000,000 | 928,570 | |||||||||||||
Anheuser-Busch InBev Worldwide, Inc. (Beverages) | 4.600% | 04/15/2048 | 2,000,000 | 1,795,430 | ||||||||||||||
B.A.T. Capital Corp. (Tobacco) | 4.390% | 08/15/2037 | 3,000,000 | 2,457,986 | ||||||||||||||
Campbell Soup Co. (Food Products) | 4.150% | 03/15/2028 | 2,000,000 | 1,863,073 | ||||||||||||||
J.M. Smucker Co. / The (Food Products) | 3.375% | 12/15/2027 | 3,000,000 | 2,788,167 | ||||||||||||||
Mead Johnson Nutrition Co. (Food Products) | 3.000% | 11/15/2020 | 900,000 | 897,191 | ||||||||||||||
Philip Morris International, Inc. (Tobacco) | 4.125% | 05/17/2021 | 1,250,000 | 1,276,798 | ||||||||||||||
|
| |||||||||||||||||
13,869,600 | ||||||||||||||||||
|
| |||||||||||||||||
ENERGY – 12.9% | ||||||||||||||||||
Apache Corp. (Oil, Gas & Consumable Fuels) | 4.375% | 10/15/2028 | 1,800,000 | 1,682,420 | ||||||||||||||
Baker Hughes, a GE Co. LLC / Baker HughesCo-Obligor, Inc. (Energy Equip. & Svs.) | 4.080% | 12/15/2047 | 2,000,000 | 1,650,379 | ||||||||||||||
BP Capital Markets America, Inc. (Oil, Gas & Consumable Fuels) | 3.017% | 01/16/2027 | 900,000 | 845,875 | ||||||||||||||
Buckeye Partners LP (Oil, Gas & Consumable Fuels) | 4.875% | 02/01/2021 | 1,000,000 | 1,011,078 | ||||||||||||||
Canadian Natural Resources Ltd. (Oil, Gas & Consumable Fuels) | 4.950% | 06/01/2047 | 3,000,000 | 2,881,707 | ||||||||||||||
Chevron Corp. (Oil, Gas & Consumable Fuels) | 2.895% | 03/03/2024 | 900,000 | 878,273 | ||||||||||||||
Columbia Pipeline Group, Inc. (Oil, Gas & Consumable Fuels) | 4.500% | 06/01/2025 | 900,000 | 906,860 | ||||||||||||||
Concho Resources, Inc. (Oil, Gas & Consumable Fuels) | 3.750% | 10/01/2027 | 2,000,000 | 1,883,807 | ||||||||||||||
Energy Transfer Operating LP (Oil, Gas & Consumable Fuels) | 4.950% | 06/15/2028 | 2,000,000 | 1,960,759 | ||||||||||||||
EQM Midstream Partners LP (Oil, Gas & Consumable Fuels) | 4.750% | 07/15/2023 | 900,000 | 895,784 | ||||||||||||||
Exxon Mobil Corp. (Oil, Gas & Consumable Fuels) | 4.114% | 03/01/2046 | 900,000 | 916,962 | ||||||||||||||
Halliburton Co. (Energy Equip. & Svs.) | 4.850% | 11/15/2035 | 900,000 | 884,575 | ||||||||||||||
Kinder Morgan Energy Partners LP (Oil, Gas & Consumable Fuels) | 2.650% | 02/01/2019 | 1,400,000 | 1,399,254 | ||||||||||||||
Kinder Morgan Energy Partners LP (Oil, Gas & Consumable Fuels) | 4.150% | 03/01/2022 | 1,000,000 | 1,007,281 | ||||||||||||||
Kinder Morgan, Inc. (Oil, Gas & Consumable Fuels) | 5.300% | 12/01/2034 | 1,000,000 | 981,841 | ||||||||||||||
Marathon Oil Corp. (Oil, Gas & Consumable Fuels) | 3.850% | 06/01/2025 | 850,000 | 797,745 | ||||||||||||||
Marathon Petroleum Corp. (Oil, Gas & Consumable Fuels) | (a) | 3.800% | 04/01/2028 | 2,000,000 | 1,877,996 | |||||||||||||
Marathon Petroleum Corp. (Oil, Gas & Consumable Fuels) | 4.750% | 09/15/2044 | 1,000,000 | 882,721 | ||||||||||||||
ONEOK, Inc. (Oil, Gas & Consumable Fuels) | 6.000% | 06/15/2035 | 1,000,000 | 998,050 | ||||||||||||||
Petroleos Mexicanos (Oil, Gas & Consumable Fuels) | 6.350% | 02/12/2048 | 1,000,000 | 796,520 | ||||||||||||||
Shell International Finance BV (Oil, Gas & Consumable Fuels) | 4.000% | 05/10/2046 | 900,000 | 870,354 | ||||||||||||||
Texas Eastern Transmission LP (Oil, Gas & Consumable Fuels) | (a) | 4.150% | 01/15/2048 | 1,000,000 | 891,294 | |||||||||||||
TransCanada PipeLines Ltd. (Oil, Gas & Consumable Fuels) | 2.500% | 08/01/2022 | 1,425,000 | 1,367,504 | ||||||||||||||
Transocean Pontus Ltd. (Energy Equip. & Svs.) | (a) | 6.125% | 08/01/2025 | 1,250,000 | 1,206,250 | |||||||||||||
Transocean, Inc. (Energy Equip. & Svs.) | (a) | 9.000% | 07/15/2023 | 1,000,000 | 995,000 | |||||||||||||
Williams Cos., Inc. / The (Oil, Gas & Consumable Fuels) | 3.350% | 08/15/2022 | 1,000,000 | 978,574 | ||||||||||||||
Williams Cos., Inc. / The (Oil, Gas & Consumable Fuels) | 3.750% | 06/15/2027 | 1,000,000 | 948,106 | ||||||||||||||
Williams Cos., Inc. / The (Oil, Gas & Consumable Fuels) | 5.400% | 03/04/2044 | 1,000,000 | 954,256 | ||||||||||||||
|
| |||||||||||||||||
33,351,225 | ||||||||||||||||||
|
| |||||||||||||||||
FINANCIALS – 28.4% | ||||||||||||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Diversified Financial Svs.) | 3.300% | 01/23/2023 | 3,000,000 | 2,851,974 | ||||||||||||||
Aflac, Inc. (Insurance) | 3.625% | 06/15/2023 | 1,425,000 | 1,429,643 |
9 | (continued) |
Ohio National Fund, Inc. | ON Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||||
FINANCIALS (continued) | ||||||||||||||||||||
American Express Co. (Consumer Finance) | QL + 75 | 08/03/2023 | $1,000,000 | $ | 980,575 | |||||||||||||||
American International Group, Inc. (Insurance) | 3.875% | 01/15/2035 | 2,400,000 | 2,066,042 | ||||||||||||||||
Bank of America Corp. (Banks) | 3.875% | 08/01/2025 | 850,000 | 841,252 | ||||||||||||||||
Bank of America Corp. (Rate is fixed until 01/23/2025, at which point, the rate becomes QL + 81) (Banks) | (b | ) | 3.366% | 01/23/2026 | 2,000,000 | 1,912,992 | ||||||||||||||
Bank of America Corp. (Rate is fixed until 04/24/2037, at which point, the rate becomes QL + 181) (Banks) | (b | ) | 4.244% | 04/24/2038 | 1,000,000 | 952,346 | ||||||||||||||
Bank of Montreal (Rate is fixed until 12/15/2027, at which point, the rate becomes USSW5 + 143) (Banks) | (b | ) | 3.803% | 12/15/2032 | 2,800,000 | 2,592,800 | ||||||||||||||
Bank of New York Mellon Corp. / The (Capital Markets) | 3.300% | 08/23/2029 | 3,000,000 | 2,810,851 | ||||||||||||||||
Berkshire Hathaway, Inc. (Diversified Financial Svs.) | 3.125% | 03/15/2026 | 900,000 | 872,752 | ||||||||||||||||
Branch Banking & Trust Co. (Banks) | 3.625% | 09/16/2025 | 1,180,000 | 1,157,260 | ||||||||||||||||
Charles Schwab Corp. / The (Capital Markets) | 3.200% | 01/25/2028 | 3,000,000 | 2,876,759 | ||||||||||||||||
Citigroup, Inc. (Banks) | 5.375% | 08/09/2020 | 1,100,000 | 1,134,870 | ||||||||||||||||
Citigroup, Inc. (Banks) | 4.400% | 06/10/2025 | 2,000,000 | 1,958,136 | ||||||||||||||||
Citigroup, Inc. (Banks) | 3.700% | 01/12/2026 | 1,000,000 | 961,923 | ||||||||||||||||
Deutsche Bank AG (Capital Markets) | 2.700% | 07/13/2020 | 5,000,000 | 4,862,406 | ||||||||||||||||
Discover Bank (Rate is fixed until 08/09/2023, at which point, the rate becomes USSW5 + 173) (Banks) | (b | ) | 4.682% | 08/09/2028 | 900,000 | 880,740 | ||||||||||||||
E*TRADE Financial Corp. (Capital Markets) | 2.950% | 08/24/2022 | 1,800,000 | 1,746,187 | ||||||||||||||||
Ford Motor Credit Co. LLC (Consumer Finance) | 3.157% | 08/04/2020 | 1,400,000 | 1,371,675 | ||||||||||||||||
Ford Motor Credit Co. LLC (Consumer Finance) | QL + 88 | 10/12/2021 | 2,000,000 | 1,919,322 | ||||||||||||||||
General Motors Financial Co., Inc. (Consumer Finance) | 3.200% | 07/06/2021 | 900,000 | 879,091 | ||||||||||||||||
General Motors Financial Co., Inc. (Consumer Finance) | QL + 99 | 01/05/2023 | 2,000,000 | 1,897,299 | ||||||||||||||||
General Motors Financial Co., Inc. (Consumer Finance) | 4.350% | 01/17/2027 | 1,000,000 | 920,914 | ||||||||||||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 3.750% | 05/22/2025 | 1,400,000 | 1,340,068 | ||||||||||||||||
Goldman Sachs Group, Inc. / The (Rate is fixed until 04/23/2028, at which point, the rate becomes QL + 116) (Capital Markets) | (b | ) | 3.814% | 04/23/2029 | 2,000,000 | 1,868,373 | ||||||||||||||
Intercontinental Exchange, Inc. (Capital Markets) | 2.750% | 12/01/2020 | 900,000 | 894,079 | ||||||||||||||||
Intercontinental Exchange, Inc. (Capital Markets) | 3.750% | 12/01/2025 | 1,000,000 | 1,004,845 | ||||||||||||||||
Jefferies Group LLC / Jefferies Group Capital Finance, Inc. (Diversified Financial Svs.) | 4.850% | 01/15/2027 | 1,800,000 | 1,720,939 | ||||||||||||||||
Jefferies Group LLC / Jefferies Group Capital Finance, Inc. (Diversified Financial Svs.) | 4.150% | 01/23/2030 | 2,000,000 | 1,716,167 | ||||||||||||||||
JPMorgan Chase & Co. (Banks) | 3.900% | 07/15/2025 | 2,023,000 | 2,005,537 | ||||||||||||||||
JPMorgan Chase & Co. (Banks) | 3.625% | 12/01/2027 | 1,800,000 | 1,676,001 | ||||||||||||||||
Marsh & McLennan Cos., Inc. (Insurance) | 3.500% | 06/03/2024 | 1,400,000 | 1,378,946 | ||||||||||||||||
Morgan Stanley (Capital Markets) | QL + 140 | 10/24/2023 | 1,260,000 | 1,253,874 | ||||||||||||||||
Morgan Stanley (Capital Markets) | 3.950% | 04/23/2027 | 1,000,000 | 943,308 | ||||||||||||||||
Morgan Stanley (Rate is fixed until 01/24/2028, at which point, the rate becomes QL + 114) (Capital Markets) | (b | ) | 3.772% | 01/24/2029 | 2,000,000 | 1,914,682 | ||||||||||||||
Nasdaq, Inc. (Capital Markets) | 3.850% | 06/30/2026 | 2,000,000 | 1,925,833 | ||||||||||||||||
PNC Bank N.A. (Banks) | 4.050% | 07/26/2028 | 3,000,000 | 3,015,464 | ||||||||||||||||
Progressive Corp. / The (Insurance) | 2.450% | 01/15/2027 | 900,000 | 819,931 | ||||||||||||||||
Synchrony Financial (Consumer Finance) | 4.250% | 08/15/2024 | 900,000 | 826,535 | ||||||||||||||||
TD Ameritrade Holding Corp. (Capital Markets) | 3.300% | 04/01/2027 | 1,900,000 | 1,818,284 | ||||||||||||||||
Teachers Insurance & Annuity Association of America (Insurance) | (a | ) | 4.270% | 05/15/2047 | 900,000 | 862,639 | ||||||||||||||
Wells Fargo & Co. (Banks) | 3.000% | 04/22/2026 | 900,000 | 839,079 | ||||||||||||||||
Wells Fargo & Co. (Banks) | 4.650% | 11/04/2044 | 1,000,000 | 942,619 | ||||||||||||||||
Wells Fargo Bank NA (Banks) | 3.550% | 08/14/2023 | 2,000,000 | 1,992,654 | ||||||||||||||||
Westpac Banking Corp. (Banks) | QL + 57 | 01/11/2023 | 1,000,000 | 989,040 | ||||||||||||||||
Westpac Banking Corp. (Rate is fixed until 11/23/2026, at which point, the rate becomes USISDA05 + 224) (Banks) | (b | ) | 4.322% | 11/23/2031 | 1,800,000 | 1,700,447 | ||||||||||||||
|
| |||||||||||||||||||
73,327,153 | ||||||||||||||||||||
|
| |||||||||||||||||||
HEALTH CARE – 3.8% | ||||||||||||||||||||
AbbVie, Inc. (Biotechnology) | 2.900% | 11/06/2022 | 2,850,000 | 2,772,985 | ||||||||||||||||
Bayer U.S. Finance II LLC (Pharmaceuticals) | (a | ) | 4.875% | 06/25/2048 | 2,000,000 | 1,799,838 | ||||||||||||||
Celgene Corp. (Biotechnology) | 3.875% | 08/15/2025 | 1,350,000 | 1,300,180 | ||||||||||||||||
CVS Health Corp. (Health Care Providers & Svs.) | 4.100% | 03/25/2025 | 3,000,000 | 2,973,671 | ||||||||||||||||
UnitedHealth Group, Inc. (Health Care Providers & Svs.) | 3.875% | 12/15/2028 | 900,000 | 912,233 | ||||||||||||||||
|
| |||||||||||||||||||
9,758,907 | ||||||||||||||||||||
|
| |||||||||||||||||||
INDUSTRIALS – 5.8% | ||||||||||||||||||||
Aircastle Ltd. (Trading Companies & Distributors) | 4.125% | 05/01/2024 | 4,000,000 | 3,774,341 | ||||||||||||||||
Burlington Northern Santa Fe LLC (Road & Rail) | 4.550% | 09/01/2044 | 900,000 | 928,968 | ||||||||||||||||
FedEx Corp. (Air Freight & Logistics) | 4.900% | 01/15/2034 | 1,425,000 | 1,457,723 | ||||||||||||||||
Lockheed Martin Corp. (Aerospace & Defense) | 3.600% | 03/01/2035 | 1,000,000 | 932,117 | ||||||||||||||||
Northrop Grumman Corp. (Aerospace & Defense) | 2.930% | 01/15/2025 | 3,900,000 | 3,702,232 | ||||||||||||||||
Parker-Hannifin Corp. (Machinery) | 4.200% | 11/21/2034 | 1,400,000 | 1,392,017 |
10 | (continued) |
Ohio National Fund, Inc. | ON Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
INDUSTRIALS (continued) | ||||||||||||||||||
Union Pacific Corp. (Road & Rail) | 3.250% | 08/15/2025 | $1,000,000 | $ | 969,230 | |||||||||||||
Waste Connections, Inc. (Commercial Svs. & Supplies) | 4.250% | 12/01/2028 | 1,800,000 | 1,840,522 | ||||||||||||||
|
| |||||||||||||||||
14,997,150 | ||||||||||||||||||
|
| |||||||||||||||||
INFORMATION TECHNOLOGY – 2.7% | ||||||||||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 3.350% | 02/09/2027 | 900,000 | 880,484 | ||||||||||||||
Hewlett Packard Enterprise Co. (Tech. Hardware, Storage & Periph.) | 4.900% | 10/15/2025 | 850,000 | 860,264 | ||||||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 3.375% | 11/01/2019 | 900,000 | 898,778 | ||||||||||||||
Microsoft Corp. (Software) | 4.100% | 02/06/2037 | 900,000 | 925,287 | ||||||||||||||
Microsoft Corp. (Software) | 4.450% | 11/03/2045 | 900,000 | 955,910 | ||||||||||||||
Oracle Corp. (Software) | 4.300% | 07/08/2034 | 1,500,000 | 1,507,152 | ||||||||||||||
Seagate HDD Cayman (Tech. Hardware, Storage & Periph.) | 4.875% | 03/01/2024 | 900,000 | 818,565 | ||||||||||||||
|
| |||||||||||||||||
6,846,440 | ||||||||||||||||||
|
| |||||||||||||||||
MATERIALS – 10.2% | ||||||||||||||||||
Anglo American Capital PLC (Metals & Mining) | (a) | 3.750% | 04/10/2022 | 1,000,000 | 977,600 | |||||||||||||
Anglo American Capital PLC (Metals & Mining) | (a) | 4.750% | 04/10/2027 | 1,000,000 | 958,232 | |||||||||||||
Anglo American Capital PLC (Metals & Mining) | (a) | 4.000% | 09/11/2027 | 900,000 | 813,230 | |||||||||||||
Dow Chemical Co. / The (Chemicals) | 4.250% | 10/01/2034 | 1,900,000 | 1,742,864 | ||||||||||||||
FMC Corp. (Chemicals) | 3.950% | 02/01/2022 | 1,000,000 | 1,005,502 | ||||||||||||||
Kinross Gold Corp. (Metals & Mining) | 4.500% | 07/15/2027 | 2,900,000 | 2,504,875 | ||||||||||||||
Martin Marietta Materials, Inc. (Construction Materials) | 3.500% | 12/15/2027 | 4,000,000 | 3,649,061 | ||||||||||||||
Martin Marietta Materials, Inc. (Construction Materials) | 4.250% | 12/15/2047 | 1,000,000 | 819,612 | ||||||||||||||
Mosaic Co. / The (Chemicals) | 4.050% | 11/15/2027 | 3,000,000 | 2,846,926 | ||||||||||||||
Packaging Corp. of America (Containers & Packaging) | 2.450% | 12/15/2020 | 2,000,000 | 1,963,310 | ||||||||||||||
Packaging Corp. of America (Containers & Packaging) | 3.400% | 12/15/2027 | 2,000,000 | 1,862,942 | ||||||||||||||
RPM International, Inc. (Chemicals) | 4.250% | 01/15/2048 | 3,000,000 | 2,557,295 | ||||||||||||||
Syngenta Finance N.V. (Chemicals) | (a) | 4.441% | 04/24/2023 | 1,000,000 | 963,670 | |||||||||||||
Syngenta Finance N.V. (Chemicals) | (a) | 5.182% | 04/24/2028 | 1,000,000 | 927,872 | |||||||||||||
Yamana Gold, Inc. (Metals & Mining) | 4.625% | 12/15/2027 | 2,800,000 | 2,594,174 | ||||||||||||||
|
| |||||||||||||||||
26,187,165 | ||||||||||||||||||
|
| |||||||||||||||||
REAL ESTATE – 7.3% | ||||||||||||||||||
Alexandria Real Estate Equities, Inc. (Equity REIT) | 3.950% | 01/15/2028 | 900,000 | 869,782 | ||||||||||||||
Boston Properties LP (Equity REIT) | 3.125% | 09/01/2023 | 925,000 | 893,585 | ||||||||||||||
Crown Castle International Corp. (Equity REIT) | 4.000% | 03/01/2027 | 1,800,000 | 1,723,047 | ||||||||||||||
Federal Realty Investment Trust (Equity REIT) | 3.000% | 08/01/2022 | 1,425,000 | 1,402,836 | ||||||||||||||
Federal Realty Investment Trust (Equity REIT) | 3.250% | 07/15/2027 | 2,800,000 | 2,654,401 | ||||||||||||||
HCP, Inc. (Equity REIT) | 4.000% | 06/01/2025 | 1,500,000 | 1,469,016 | ||||||||||||||
Healthcare Realty Trust, Inc. (Equity REIT) | 3.875% | 05/01/2025 | 1,400,000 | 1,364,674 | ||||||||||||||
Healthcare Realty Trust, Inc. (Equity REIT) | 3.625% | 01/15/2028 | 1,000,000 | 939,569 | ||||||||||||||
Hospitality Properties Trust (Equity REIT) | 4.250% | 02/15/2021 | 1,000,000 | 1,002,901 | ||||||||||||||
Kilroy Realty LP (Equity REIT) | 3.450% | 12/15/2024 | 1,000,000 | 966,166 | ||||||||||||||
SITE Centers Corp. (Equity REIT) | 3.625% | 02/01/2025 | 1,721,000 | 1,643,988 | ||||||||||||||
Vornado Realty LP (Equity REIT) | 3.500% | 01/15/2025 | 3,000,000 | 2,893,116 | ||||||||||||||
Welltower, Inc. (Equity REIT) | 4.250% | 04/01/2026 | 1,000,000 | 998,704 | ||||||||||||||
|
| |||||||||||||||||
18,821,785 | ||||||||||||||||||
|
| |||||||||||||||||
UTILITIES – 7.8% | ||||||||||||||||||
AEP Transmission Co. LLC (Electric Utilities) | 4.000% | 12/01/2046 | 900,000 | 860,574 | ||||||||||||||
American Water Capital Corp. (Water Utilities) | 4.300% | 12/01/2042 | 1,400,000 | 1,390,576 | ||||||||||||||
Berkshire Hathaway Energy Co. (Multi-Utilities) | 3.250% | 04/15/2028 | 1,900,000 | 1,808,539 | ||||||||||||||
Commonwealth Edison Co. (Electric Utilities) | 4.350% | 11/15/2045 | 900,000 | 905,320 | ||||||||||||||
DTE Electric Co. (Electric Utilities) | 3.375% | 03/01/2025 | 1,000,000 | 988,484 | ||||||||||||||
Duke Energy Corp. (Electric Utilities) | 3.750% | 09/01/2046 | 900,000 | 779,218 | ||||||||||||||
Duke Energy Florida LLC (Electric Utilities) | 2.100% | 12/15/2019 | 1,000,000 | 991,919 | ||||||||||||||
Eversource Energy (Electric Utilities) | 3.300% | 01/15/2028 | 3,000,000 | 2,847,029 | ||||||||||||||
LG&E & KU Energy LLC (Electric Utilities) | 4.375% | 10/01/2021 | 1,000,000 | 1,016,195 | ||||||||||||||
NextEra Energy Capital Holdings, Inc. (Electric Utilities) | 2.800% | 01/15/2023 | 3,000,000 | 2,894,939 | ||||||||||||||
Public Service Electric & Gas Co. (Multi-Utilities) | 3.600% | 12/01/2047 | 1,500,000 | 1,369,980 | ||||||||||||||
South Carolina Electric & Gas Co. (Electric Utilities) | 4.350% | 02/01/2042 | 1,000,000 | 981,210 | ||||||||||||||
Southern Co. Gas Capital Corp. (Gas Utilities) | 5.250% | 08/15/2019 | 1,000,000 | 1,009,352 | ||||||||||||||
Southwest Gas Corp. (Gas Utilities) | 3.875% | 04/01/2022 | 1,000,000 | 995,872 | ||||||||||||||
Virginia Electric & Power Co. (Electric Utilities) | 3.450% | 02/15/2024 | 1,255,000 | 1,253,981 | ||||||||||||||
|
| |||||||||||||||||
20,093,188 | ||||||||||||||||||
|
| |||||||||||||||||
Total Corporate Bonds (Cost $259,062,642) | $ | 246,951,986 | ||||||||||||||||
|
|
11 | (continued) |
Ohio National Fund, Inc. | ON Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Asset-Backed Securities – 2.8% | Rate | Maturity | Face Amount | Value | ||||||||||||||
| ||||||||||||||||||
INDUSTRIALS – 2.8% | ||||||||||||||||||
Air Canada2017-1 Class B Pass Through Trust | (a) | 3.700% | 01/15/2026 | $2,500,000 | $ | 2,371,750 | ||||||||||||
American Airlines2015-1 Class B Pass Through Trust | 3.700% | 05/01/2023 | 3,267,388 | 3,150,416 | ||||||||||||||
United Airlines2016-1 Class B Pass Through Trust | 3.650% | 01/07/2026 | 1,722,917 | 1,683,990 | ||||||||||||||
|
| |||||||||||||||||
Total Asset-Backed Securities (Cost $7,493,609) | $ | 7,206,156 | ||||||||||||||||
|
| |||||||||||||||||
Sovereign Issues – 1.1% | Rate | Maturity | Face Amount | Value | ||||||||||||||
| ||||||||||||||||||
Mexico Government International Bond | 3.750% | 01/11/2028 | $3,000,000 | $ | 2,808,030 | |||||||||||||
|
| |||||||||||||||||
Total Sovereign Issues (Cost $2,988,180) | $ | 2,808,030 | ||||||||||||||||
|
| |||||||||||||||||
Money Market Funds – 0.5% | Shares | Value | ||||||||||||||||
| ||||||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (c) | 1,131,965 | $ | 1,131,852 | ||||||||||||||
|
| |||||||||||||||||
Total Money Market Funds (Cost $1,131,852) | $ | 1,131,852 | ||||||||||||||||
|
| |||||||||||||||||
Total Investments – 100.2% (Cost $270,676,283) | (d) | $ | 258,098,024 | |||||||||||||||
Liabilities in Excess of Other Assets – (0.2)% | (407,340 | ) | ||||||||||||||||
|
| |||||||||||||||||
Net Assets – 100.0% | $ | 257,690,684 | ||||||||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
QL: | Quarterly U.S. LIBOR Rate, 2.808% at 12/31/2018 |
USISDA05: | USD ICE Swap Rate 11:00am NY 5 Year, 2.635% at 12/31/2018 |
USSW5: | USD Swap Semi 30/360 5 Year, 2.607% at 12/31/2018 |
Footnotes:
(a) | Security exempt from registration under Regulation D of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified buyers under Rule 144A. At December 31, 2018, the value of these securities totaled $21,307,116, or 8.3% of the Portfolio’s net assets. |
(b) | Security is a fixed-then-variable rate instrument in which the coupon or dividend rate is fixed until a later specified date, then is adjusted periodically. Rates stated, including interest rate caps and floors, if any, are those in effect at December 31, 2018. |
(c) | Rate represents theseven-day yield at December 31, 2018. |
(d) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
12 |
Ohio National Fund, Inc. | ON Omni Portfolio (Unaudited) |
Objective/Strategy |
The ON Omni Portfolio (formerly the Omni Portfolio) seeks a high level of long-term total return consistent with preservation of capital by investing in stocks, bonds, and money market instruments.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -14.57 | % | ||
Five years | 5.48 | % | ||
Ten years | 10.68 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.78% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser/Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Omni Portfolio returned-14.57% versus-4.38% for its benchmark, the S&P 500 Index. The Portfolio’s secondary benchmark, which is comprised of 70% S&P 500 Index and 30% ICE BofA Merrill Lynch U.S. Corporate Master Index, returned-3.51% for the period.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.For the equity portion of the Portfolio, security selection was the primary driver of underperformance. Specifically, security selection in Information Technology and Health Care detracted most from relative performance. For the fixed income portion of the Portfolio, sector allocation and security selection contributed to performance vs. the benchmark and the ICE BofA Merrill Lynch U.S. Corporate Master Index. The allocation to U.S. Treasury Notes was the largest positive sector allocation, followed by Consumer Staples and Financials. Positive security selection occurred in the Consumer Staples, Consumer Discretionary, and Communication Services sectors. Negative security selection occurred in the Materials, Financials, and Information Technology sectors.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Top contributors for the equity portion of the Portfolio included Amazon.com, Inc. (“Amazon”), Xilinx, Inc. (“Xilinx“) and The Boeing Co. (“Boeing”). Amazon had several significant accomplishments in 2018 – it successfully executed the launch of its new GO checkout-less store concept,re-accelerated growth in its public cloud computing business
(Amazon Web Services), and significantly exceeded profit expectations, as investments in past years to optimize costs yielded positive results. Xilinx beat its revenue growth outlook significantly, due to earlier 5G wireless network buildouts, as well as a gain in market share from Intel Corp. for data-center acceleration opportunities. Despite well-known supplier issues, Boeing significantly exceeded its free cash flow outlook for the year. Additionally, the company made progress in executing its long-term growth strategy, via acquisitions and contract wins. (1)
Top contributors for the fixed income portion of the Portfolio included Spectra Energy Capital LLC 3.300% due 2023, U.S. Treasury Note 2.000% due 2024, and U.S. Treasury Note 1.500% due 2026. Spectra Energy Capital LLC bonds were called with a make-whole premium during the period. The U.S. Treasury Notes performed well vs. the benchmark because the credit spread on U.S. Treasury Notes did not widen like most corporate bonds, and the U.S. Treasury Notes were held during a period when interest rates declined in 2018.(1)
Top equity detractors included Evoqua Water Technologies Corp. The company missed earnings twice. Initially, it was thought to be aone-time event, but the second miss was driven by significantly higher costs and a revenue shortfall. The company’s highly leveraged balance sheet was also a driver for underperformance. With Sage Therapeutics, Inc. (“Sage”), another top detractor, the Food and Drug Administration delayed its approval decision for Sage’s post-partum-depression drug to early 2019 in order to allow Sage to complete the development of a safety program for the drug. PVH Corp. missed profit expectations in its Calvin Klein division due to weaker demand for its new jeans and fashion designs.(1)
Top detractors for the fixed income portion of the Portfolio included General Motors Co. 5.000% due 2035, American International Group, Inc. 3.875% due 2035, and Anheuser-Busch Cos. LLC / Anheuser-Busch InBevWorldwide, Inc. 4.7000% due 2036. Each of these bonds is a longer duration bond, which performed poorly with higher interest rates, and experienced spread widening during the period.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
13 | (continued) |
Ohio National Fund, Inc. | ON Omni Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P 500 Index is a capitalization-weighted index designed to measure performance of the broad domestic market through changes in the aggregate market value of 500 stocks representing all major industries. The index presented includes the effects of reinvested dividends.
The ICE BofA Merrill Lynch U.S. Corporate Master Index tracks the performance of all U.S. dollar-denominated, investment grade corporate public debt issued in the U.S. domestic bond market. Qualifying bonds must have an investment grade rating (based on an average of Moody’s, S&P, and Fitch). In addition, qualifying securities must have at least one year remaining term to maturity, a fixed coupon schedule, and a minimum amount outstanding of $250 million.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||||||
Common Stocks(4) |
| 74.6 | ||||||
Corporate Bonds(4) |
| 21.8 | ||||||
Master Limited Partnerships(4) |
| 1.7 | ||||||
Asset-Backed Securities(4) |
| 0.6 | ||||||
U.S. Treasury Obligations |
| 0.3 | ||||||
Money Market Funds and Other Net Assets |
| 1.0 | ||||||
|
| |||||||
100.0 | ||||||||
|
|
Top 10 Portfolio Holdings as of December 31, 2018(1) (2) (3) |
% of Net Assets | ||||||
1. | Alphabet, Inc. Class C | 2.6 | ||||
2. | Microsoft Corp. | 2.5 | ||||
3. | Marvell Technology Group Ltd. | 2.4 | ||||
4. | Bank of America Corp. | 2.2 | ||||
5. | Amazon.com, Inc. | 2.0 | ||||
6. | Citigroup, Inc. | 1.9 | ||||
7. | Hartford Financial Services Group, Inc. / The | 1.9 | ||||
8. | Applied Materials, Inc. | 1.8 | ||||
9. | Celgene Corp. | 1.7 | ||||
10. | Goldman Sachs Group, Inc. / The | 1.7 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Corporate Bonds, Asset-Backed Securities, Master Limited Partnerships): |
% of Net Assets | ||||
Financials | 20.5 | |||
Industrials | 18.1 | |||
Information Technology | 16.5 | |||
Consumer Discretionary | 15.8 | |||
Communication Services | 8.6 | |||
Health Care | 6.9 | |||
Energy | 4.7 | |||
Materials | 2.8 | |||
Consumer Staples | 2.1 | |||
Real Estate | 1.5 | |||
Utilities | 1.2 | |||
|
| |||
98.7 | ||||
|
|
14
Ohio National Fund, Inc. | ON Omni Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 74.6% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 7.5% | ||||||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 1,356 | $ | 1,404,287 | |||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 31,054 | 886,281 | ||||||||||
Lions Gate Entertainment Corp. Class A (Entertainment) | 51,314 | 826,155 | ||||||||||
Walt Disney Co. / The (Entertainment) | 8,367 | 917,442 | ||||||||||
|
| |||||||||||
4,034,165 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 14.7% | ||||||||||||
Alibaba Group Holding Ltd. – ADR (Internet & Direct Marketing Retail) | (a | ) | 6,246 | 856,139 | ||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | (a | ) | 724 | 1,087,426 | ||||||||
General Motors Co. (Automobiles) | 24,062 | 804,874 | ||||||||||
Lowe’s Cos., Inc. (Specialty Retail) | 8,851 | 817,478 | ||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 11,406 | 276,710 | ||||||||||
Norwegian Cruise Line Holdings Ltd. (Hotels, Restaurants & Leisure) | (a | ) | 18,708 | 793,032 | ||||||||
PVH Corp. (Textiles, Apparel & Luxury Goods) | 8,734 | 811,825 | ||||||||||
Royal Caribbean Cruises Ltd. (Hotels, Restaurants & Leisure) | 8,664 | 847,253 | ||||||||||
Tapestry, Inc. (Textiles, Apparel & Luxury Goods) | 23,464 | 791,910 | ||||||||||
Tiffany & Co. (Specialty Retail) | 9,878 | 795,278 | ||||||||||
|
| |||||||||||
7,881,925 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 1.5% | ||||||||||||
PepsiCo, Inc. (Beverages) | 7,494 | 827,937 | ||||||||||
|
| |||||||||||
ENERGY – 1.5% | ||||||||||||
Pioneer Natural Resources Co. (Oil, Gas & Consumable Fuels) | 6,058 | 796,748 | ||||||||||
|
| |||||||||||
FINANCIALS – 10.7% | ||||||||||||
Bank of America Corp. (Banks) | 47,120 | 1,161,037 | ||||||||||
Citigroup, Inc. (Banks) | 19,367 | 1,008,246 | ||||||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 5,504 | 919,443 | ||||||||||
Hartford Financial Services Group, Inc. / The (Insurance) | 22,258 | 989,368 | ||||||||||
JPMorgan Chase & Co. (Banks) | 8,091 | 789,844 | ||||||||||
Lincoln National Corp. (Insurance) | 16,265 | 834,557 | ||||||||||
|
| |||||||||||
5,702,495 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 6.2% | ||||||||||||
Aerie Pharmaceuticals, Inc. (Pharmaceuticals) | (a | ) | 18,618 | 672,110 | ||||||||
Celgene Corp. (Biotechnology) | (a | ) | 14,546 | 932,253 | ||||||||
Sage Therapeutics, Inc. (Biotechnology) | (a | ) | 9,097 | 871,402 | ||||||||
Thermo Fisher Scientific, Inc. (Life Sciences Tools & Svs.) | 3,712 | 830,708 | ||||||||||
|
| |||||||||||
3,306,473 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 16.1% | ||||||||||||
AECOM (Construction & Engineering) | (a | ) | 30,720 | 814,080 | ||||||||
Boeing Co. / The (Aerospace & Defense) | 2,578 | 831,405 | ||||||||||
Caterpillar, Inc. (Machinery) | 4,515 | 573,721 | ||||||||||
Deere & Co. (Machinery) | 6,019 | 897,854 | ||||||||||
Delta Air Lines, Inc. (Airlines) | 16,352 | 815,965 | ||||||||||
FedEx Corp. (Air Freight & Logistics) | 4,728 | 762,768 | ||||||||||
Lockheed Martin Corp. (Aerospace & Defense) | 3,183 | 833,437 | ||||||||||
Quanta Services, Inc. (Construction & Engineering) | 27,695 | 833,619 | ||||||||||
Raytheon Co. (Aerospace & Defense) | 3,886 | 595,918 | ||||||||||
Rockwell Automation, Inc. (Electrical Equip.) | 5,820 | 875,794 | ||||||||||
XPO Logistics, Inc. (Air Freight & Logistics) | (a | ) | 13,741 | 783,787 | ||||||||
|
| |||||||||||
8,618,348 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 14.9% | ||||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 5,502 | 867,885 | ||||||||||
Applied Materials, Inc. (Semiconductors & Equip.) | 29,298 | 959,217 | ||||||||||
Broadcom, Inc. (Semiconductors & Equip.) | 2,062 | 524,325 | ||||||||||
DXC Technology Co. (IT Svs.) | 15,835 | 841,947 | ||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 9,826 | 879,329 | ||||||||||
Marvell Technology Group Ltd. (Semiconductors & Equip.) | 78,837 | 1,276,371 | ||||||||||
Microchip Technology, Inc. (Semiconductors & Equip.) | 6,440 | 463,165 | ||||||||||
Microsoft Corp. (Software) | 13,229 | 1,343,670 | ||||||||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 14,463 | 823,089 | ||||||||||
|
| |||||||||||
7,978,998 | ||||||||||||
|
| |||||||||||
MATERIALS – 1.5% | ||||||||||||
FMC Corp. (Chemicals) | 10,939 | 809,049 | ||||||||||
|
| |||||||||||
Total Common Stocks (Cost $46,436,645) | $ | 39,956,138 | ||||||||||
|
|
15 | (continued) |
Ohio National Fund, Inc. | ON Omni Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds – 21.8% | Rate | Maturity | Face Amount | Value | ||||||||||||||
COMMUNICATION SERVICES – 1.1% | ||||||||||||||||||
21st Century Fox America, Inc. (Entertainment) | 4.500% | 02/15/2021 | $100,000 | $ | 102,666 | |||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 3.400% | 05/15/2025 | 100,000 | 94,001 | ||||||||||||||
Discovery Communications LLC (Media) | 3.950% | 03/20/2028 | 100,000 | 92,779 | ||||||||||||||
Time Warner Cable LLC (Media) | 6.550% | 05/01/2037 | 150,000 | 154,082 | ||||||||||||||
Verizon Communications, Inc. (Diversified Telecom. Svs.) | 3.850% | 11/01/2042 | 75,000 | 64,952 | ||||||||||||||
Viacom, Inc. (Entertainment) | 4.250% | 09/01/2023 | 75,000 | 74,703 | ||||||||||||||
|
| |||||||||||||||||
583,183 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER DISCRETIONARY – 1.1% | ||||||||||||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | 3.875% | 08/22/2037 | 100,000 | 97,209 | ||||||||||||||
Booking Holdings, Inc. (Internet & Direct Marketing Retail) | 3.550% | 03/15/2028 | 200,000 | 187,353 | ||||||||||||||
General Motors Co. (Automobiles) | 5.000% | 04/01/2035 | 100,000 | 85,101 | ||||||||||||||
Lear Corp. (Auto Components) | 5.250% | 01/15/2025 | 222,000 | 228,114 | ||||||||||||||
|
| |||||||||||||||||
597,777 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER STAPLES – 0.6% | ||||||||||||||||||
Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Beverages) | (b) | 4.700% | 02/01/2036 | 100,000 | 93,119 | |||||||||||||
Mead Johnson Nutrition Co. (Food Products) | 3.000% | 11/15/2020 | 100,000 | 99,688 | ||||||||||||||
Philip Morris International, Inc. (Tobacco) | 3.375% | 08/11/2025 | 100,000 | 97,213 | ||||||||||||||
|
| |||||||||||||||||
290,020 | ||||||||||||||||||
|
| |||||||||||||||||
ENERGY – 3.2% | ||||||||||||||||||
Apache Corp. (Oil, Gas & Consumable Fuels) | 4.375% | 10/15/2028 | 200,000 | 186,935 | ||||||||||||||
BP Capital Markets America, Inc. (Oil, Gas & Consumable Fuels) | 3.017% | 01/16/2027 | 100,000 | 93,986 | ||||||||||||||
Canadian Natural Resources Ltd. (Oil, Gas & Consumable Fuels) | 4.950% | 06/01/2047 | 100,000 | 96,057 | ||||||||||||||
Chevron Corp. (Oil, Gas & Consumable Fuels) | 2.895% | 03/03/2024 | 100,000 | 97,586 | ||||||||||||||
Columbia Pipeline Group, Inc. (Oil, Gas & Consumable Fuels) | 4.500% | 06/01/2025 | 100,000 | 100,762 | ||||||||||||||
EOG Resources, Inc. (Oil, Gas & Consumable Fuels) | 3.150% | 04/01/2025 | 100,000 | 96,758 | ||||||||||||||
EQM Midstream Partners LP (Oil, Gas & Consumable Fuels) | 4.750% | 07/15/2023 | 100,000 | 99,532 | ||||||||||||||
Exxon Mobil Corp. (Oil, Gas & Consumable Fuels) | 4.114% | 03/01/2046 | 100,000 | 101,885 | ||||||||||||||
Halliburton Co. (Energy Equip. & Svs.) | 4.850% | 11/15/2035 | 100,000 | 98,286 | ||||||||||||||
Kinder Morgan Energy Partners LP (Oil, Gas & Consumable Fuels) | 4.150% | 03/01/2022 | 75,000 | 75,546 | ||||||||||||||
Marathon Oil Corp. (Oil, Gas & Consumable Fuels) | 3.850% | 06/01/2025 | 150,000 | 140,778 | ||||||||||||||
ONEOK, Inc. (Oil, Gas & Consumable Fuels) | 4.000% | 07/13/2027 | 150,000 | 143,144 | ||||||||||||||
Shell International Finance BV (Oil, Gas & Consumable Fuels) | 4.000% | 05/10/2046 | 100,000 | 96,706 | ||||||||||||||
TransCanada PipeLines Ltd. (Oil, Gas & Consumable Fuels) | 2.500% | 08/01/2022 | 75,000 | 71,974 | ||||||||||||||
Williams Cos., Inc. / The (Oil, Gas & Consumable Fuels) | 3.350% | 08/15/2022 | 109,000 | 106,665 | ||||||||||||||
Williams Cos., Inc. / The (Oil, Gas & Consumable Fuels) | 5.400% | 03/04/2044 | 100,000 | 95,426 | ||||||||||||||
|
| |||||||||||||||||
1,702,026 | ||||||||||||||||||
|
| |||||||||||||||||
FINANCIALS – 8.1% | ||||||||||||||||||
Aflac, Inc. (Insurance) | 3.625% | 06/15/2023 | 75,000 | 75,244 | ||||||||||||||
American International Group, Inc. (Insurance) | 3.875% | 01/15/2035 | 100,000 | 86,085 | ||||||||||||||
Bank of America Corp. (Banks) | 3.875% | 08/01/2025 | 150,000 | 148,456 | ||||||||||||||
Bank of Montreal (Rate is fixed until 12/15/2027, at which point, the rate becomes USSW5 + 143) (Banks) | (c) | 3.803% | 12/15/2032 | 200,000 | 185,200 | |||||||||||||
Bank of New York Mellon Corp. / The (Capital Markets) | 3.300% | 08/23/2029 | 200,000 | 187,390 | ||||||||||||||
Berkshire Hathaway, Inc. (Diversified Financial Svs.) | 3.125% | 03/15/2026 | 100,000 | 96,972 | ||||||||||||||
Branch Banking & Trust Co. (Banks) | 3.625% | 09/16/2025 | 100,000 | 98,073 | ||||||||||||||
Capital One Financial Corp. (Consumer Finance) | 2.450% | 04/24/2019 | 200,000 | 199,679 | ||||||||||||||
Citigroup, Inc. (Banks) | 4.400% | 06/10/2025 | 100,000 | 97,907 | ||||||||||||||
Comerica, Inc. (Banks) | 3.800% | 07/22/2026 | 100,000 | 97,215 | ||||||||||||||
Deutsche Bank AG (Capital Markets) | 2.700% | 07/13/2020 | 200,000 | 194,496 | ||||||||||||||
Discover Bank (Rate is fixed until 08/09/2023, at which point, the rate becomes USSW5 + 173) (Banks) | (c) | 4.682% | 08/09/2028 | 100,000 | 97,860 | |||||||||||||
E*TRADE Financial Corp. (Capital Markets) | 2.950% | 08/24/2022 | 200,000 | 194,021 | ||||||||||||||
Ford Motor Credit Co. LLC (Consumer Finance) | 3.157% | 08/04/2020 | 100,000 | 97,977 | ||||||||||||||
General Motors Financial Co., Inc. (Consumer Finance) | 3.200% | 07/06/2021 | 100,000 | 97,677 | ||||||||||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 3.750% | 05/22/2025 | 100,000 | 95,719 | ||||||||||||||
Intercontinental Exchange, Inc. (Capital Markets) | 2.750% | 12/01/2020 | 100,000 | 99,342 | ||||||||||||||
Jefferies Group LLC / Jefferies Group Capital Finance, Inc. (Diversified Financial Svs.) | 4.850% | 01/15/2027 | 200,000 | 191,215 | ||||||||||||||
JPMorgan Chase & Co. (Banks) | 3.250% | 09/23/2022 | 100,000 | 99,201 | ||||||||||||||
JPMorgan Chase & Co. (Banks) | 3.625% | 12/01/2027 | 200,000 | 186,222 | ||||||||||||||
Marsh & McLennan Cos., Inc. (Insurance) | 3.500% | 06/03/2024 | 100,000 | 98,496 | ||||||||||||||
Morgan Stanley (Capital Markets) | 3.950% | 04/23/2027 | 100,000 | 94,331 | ||||||||||||||
Nasdaq, Inc. (Capital Markets) | 3.850% | 06/30/2026 | 100,000 | 96,292 | ||||||||||||||
Northern Trust Corp. (Capital Markets) | 3.950% | 10/30/2025 | 200,000 | 203,838 | ||||||||||||||
PNC Bank N.A. (Banks) | 3.250% | 06/01/2025 | 195,000 | 189,323 | ||||||||||||||
Progressive Corp. / The (Insurance) | 2.450% | 01/15/2027 | 100,000 | 91,103 | ||||||||||||||
Raymond James Financial, Inc. (Capital Markets) | 3.625% | 09/15/2026 | 100,000 | 94,287 |
16 | (continued) |
Ohio National Fund, Inc. | ON Omni Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
FINANCIALS (continued) | ||||||||||||||||||
S&P Global, Inc. (Capital Markets) | 4.000% | 06/15/2025 | $150,000 | $ | 152,802 | |||||||||||||
Synchrony Financial (Consumer Finance) | 4.250% | 08/15/2024 | 100,000 | 91,837 | ||||||||||||||
TD Ameritrade Holding Corp. (Capital Markets) | 3.300% | 04/01/2027 | 150,000 | 143,549 | ||||||||||||||
Teachers Insurance & Annuity Association of America (Insurance) | (b) | 4.270% | 05/15/2047 | 100,000 | 95,849 | |||||||||||||
Wells Fargo & Co. (Banks) | 3.500% | 03/08/2022 | 75,000 | 74,747 | ||||||||||||||
Wells Fargo & Co. (Banks) | 3.000% | 04/22/2026 | 100,000 | 93,231 | ||||||||||||||
Westpac Banking Corp. (Rate is fixed until 11/23/2026, at which point, the rate becomes USISDA05 + 224) (Banks) | (c) | 4.322% | 11/23/2031 | 200,000 | 188,939 | |||||||||||||
|
| |||||||||||||||||
4,334,575 | ||||||||||||||||||
|
| |||||||||||||||||
HEALTH CARE – 0.7% | ||||||||||||||||||
AbbVie, Inc. (Biotechnology) | 2.900% | 11/06/2022 | 150,000 | 145,947 | ||||||||||||||
Celgene Corp. (Biotechnology) | 3.875% | 08/15/2025 | 150,000 | 144,464 | ||||||||||||||
UnitedHealth Group, Inc. (Health Care Providers & Svs.) | 3.875% | 12/15/2028 | 100,000 | 101,359 | ||||||||||||||
|
| |||||||||||||||||
391,770 | ||||||||||||||||||
|
| |||||||||||||||||
INDUSTRIALS – 1.4% | ||||||||||||||||||
Burlington Northern Santa Fe LLC (Road & Rail) | 4.550% | 09/01/2044 | 100,000 | 103,219 | ||||||||||||||
FedEx Corp. (Air Freight & Logistics) | 4.900% | 01/15/2034 | 75,000 | 76,722 | ||||||||||||||
Lockheed Martin Corp. (Aerospace & Defense) | 3.600% | 03/01/2035 | 100,000 | 93,212 | ||||||||||||||
Northrop Grumman Corp. (Aerospace & Defense) | 2.930% | 01/15/2025 | 100,000 | 94,929 | ||||||||||||||
Parker-Hannifin Corp. (Machinery) | 4.200% | 11/21/2034 | 100,000 | 99,430 | ||||||||||||||
Union Pacific Corp. (Road & Rail) | 3.250% | 08/15/2025 | 100,000 | 96,923 | ||||||||||||||
Waste Connections, Inc. (Commercial Svs. & Supplies) | 4.250% | 12/01/2028 | 200,000 | 204,502 | ||||||||||||||
|
| |||||||||||||||||
768,937 | ||||||||||||||||||
|
| |||||||||||||||||
INFORMATION TECHNOLOGY – 1.6% | ||||||||||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 2.500% | 02/09/2025 | 100,000 | 94,477 | ||||||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 3.350% | 02/09/2027 | 100,000 | 97,832 | ||||||||||||||
Hewlett Packard Enterprise Co. (Tech. Hardware, Storage & Periph.) | 4.900% | 10/15/2025 | 150,000 | 151,811 | ||||||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 3.375% | 11/01/2019 | 100,000 | 99,864 | ||||||||||||||
Microsoft Corp. (Software) | 4.100% | 02/06/2037 | 100,000 | 102,810 | ||||||||||||||
Microsoft Corp. (Software) | 4.450% | 11/03/2045 | 100,000 | 106,212 | ||||||||||||||
Oracle Corp. (Software) | 4.300% | 07/08/2034 | 100,000 | 100,477 | ||||||||||||||
Seagate HDD Cayman (Tech. Hardware, Storage & Periph.) | 4.875% | 03/01/2024 | 100,000 | 90,952 | ||||||||||||||
|
| |||||||||||||||||
844,435 | ||||||||||||||||||
|
| |||||||||||||||||
MATERIALS – 1.3% | ||||||||||||||||||
Anglo American Capital PLC (Metals & Mining) | (b) | 4.000% | 09/11/2027 | 100,000 | 90,359 | |||||||||||||
CF Industries, Inc. (Chemicals) | (b) | 4.500% | 12/01/2026 | 150,000 | 146,673 | |||||||||||||
Dow Chemical Co. / The (Chemicals) | 4.250% | 10/01/2034 | 100,000 | 91,730 | ||||||||||||||
Kinross Gold Corp. (Metals & Mining) | 4.500% | 07/15/2027 | 100,000 | 86,375 | ||||||||||||||
Mosaic Co. / The (Chemicals) | 4.050% | 11/15/2027 | 100,000 | 94,897 | ||||||||||||||
Yamana Gold, Inc. (Metals & Mining) | 4.625% | 12/15/2027 | 200,000 | 185,298 | ||||||||||||||
|
| |||||||||||||||||
695,332 | ||||||||||||||||||
|
| |||||||||||||||||
REAL ESTATE – 1.5% | ||||||||||||||||||
Alexandria Real Estate Equities, Inc. (Equity REIT) | 3.950% | 01/15/2028 | 100,000 | 96,642 | ||||||||||||||
Boston Properties LP (Equity REIT) | 3.125% | 09/01/2023 | 75,000 | 72,453 | ||||||||||||||
Crown Castle International Corp. (Equity REIT) | 4.000% | 03/01/2027 | 200,000 | 191,450 | ||||||||||||||
Federal Realty Investment Trust (Equity REIT) | 3.000% | 08/01/2022 | 75,000 | 73,833 | ||||||||||||||
Federal Realty Investment Trust (Equity REIT) | 3.250% | 07/15/2027 | 200,000 | 189,600 | ||||||||||||||
HCP, Inc. (Equity REIT) | 4.000% | 06/01/2025 | 100,000 | 97,934 | ||||||||||||||
Healthcare Realty Trust, Inc. (Equity REIT) | 3.875% | 05/01/2025 | 100,000 | 97,477 | ||||||||||||||
|
| |||||||||||||||||
819,389 | ||||||||||||||||||
|
| |||||||||||||||||
UTILITIES – 1.2% | ||||||||||||||||||
AEP Transmission Co. LLC (Electric Utilities) | 4.000% | 12/01/2046 | 100,000 | 95,619 | ||||||||||||||
American Water Capital Corp. (Water Utilities) | 4.300% | 12/01/2042 | 100,000 | 99,327 | ||||||||||||||
Berkshire Hathaway Energy Co. (Multi-Utilities) | 3.250% | 04/15/2028 | 100,000 | 95,186 | ||||||||||||||
Commonwealth Edison Co. (Electric Utilities) | 4.350% | 11/15/2045 | 100,000 | 100,591 | ||||||||||||||
Duke Energy Corp. (Electric Utilities) | 3.750% | 09/01/2046 | 100,000 | 86,580 | ||||||||||||||
Fortis, Inc. (Electric Utilities) | 3.055% | 10/04/2026 | 100,000 | 91,337 | ||||||||||||||
South Carolina Electric & Gas Co. (Electric Utilities) | 4.350% | 02/01/2042 | 75,000 | 73,591 | ||||||||||||||
|
| |||||||||||||||||
642,231 | ||||||||||||||||||
|
| |||||||||||||||||
Total Corporate Bonds (Cost $12,054,059) | $ | 11,669,675 | ||||||||||||||||
|
|
17 | (continued) |
Ohio National Fund, Inc. | ON Omni Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Master Limited Partnerships – 1.7% | Shares | Value | |||||||||||||||||||||||
FINANCIALS – 1.7% | |||||||||||||||||||||||||
Blackstone Group LP / The (Capital Markets) | 30,233 | $ | 901,246 | ||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Master Limited Partnerships (Cost $1,050,405) | $ | 901,246 | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Asset-Backed Securities – 0.6% | Rate | Maturity | Face Amount | Value | |||||||||||||||||||||
INDUSTRIALS – 0.6% | |||||||||||||||||||||||||
American Airlines2015-1 Class B Pass Through Trust | 3.700% | 05/01/2023 | $ | 136,141 | $ | 131,267 | |||||||||||||||||||
United Airlines2016-1 Class B Pass Through Trust | 3.650% | 01/07/2026 | 191,435 | 187,110 | |||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Asset-Backed Securities (Cost $327,606) | $ | 318,377 | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
U.S. Treasury Obligations – 0.3% | Rate | Maturity | Face Amount | Value | |||||||||||||||||||||
U.S. Treasury Note | 1.750% | 05/15/2022 | $ | 200,000 | $ | 195,303 | |||||||||||||||||||
|
| ||||||||||||||||||||||||
Total U.S. Treasury Obligations (Cost $203,645) | $ | 195,303 | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Money Market Funds – 0.2% | Shares | Value | |||||||||||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (d) | 116,976 | $ | 116,964 | |||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Money Market Funds (Cost $116,964) | $ | 116,964 | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Investments – 99.2% (Cost $60,189,324) | (e) | $ | 53,157,703 | ||||||||||||||||||||||
Other Assets in Excess of Liabilities – 0.8% | 405,845 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Net Assets – 100.0% | $ | 53,563,548 | |||||||||||||||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: | American Depositary Receipts |
USISDA05: | USD ICE Swap Rate 11:00am NY 5 Year, 2.635% at 12/31/2018 |
USSW5: | USD Swap Semi 30/360 5 Year, 2.607% at 12/31/2018 |
Footnotes:
(a) | Non-income producing security. |
(b) | Security exempt from registration under Regulation D of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified buyers under Rule 144A. At December 31, 2018, the value of these securities totaled $426,000, or 0.8% of the Portfolio’s net assets. |
(c) | Security is a fixed-then-variable rate instrument in which the coupon or dividend rate is fixed until a later specified date, then is adjusted periodically. Rates stated, including interest rate caps and floors, if any, are those in effect at December 31, 2018. |
(d) | Rate represents theseven-day yield at December 31, 2018. |
(e) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
18 |
Ohio National Fund, Inc. | ON Capital Appreciation Portfolio (Unaudited) |
Objective/Strategy |
The ON Capital Appreciation Portfolio (formerly the Capital Appreciation Portfolio) seeks long-term growth of capital by investing primarily in equity and equity related securities of established companies with either current or emerging earnings growth not fully appreciated or recognized by the market.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -13.58% | |||
Five years | 4.06% | |||
Ten years | 12.23% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.86% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Capital Appreciation Portfolio returned-13.58% versus-4.38% for its benchmark, the S&P 500 Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.As 2018 began, global Gross Domestic Product (“GDP”) growth was accelerating, the labor market was continuing to strengthen, and lower U.S. corporate tax rates were taking effect, helping to boost wages and capital spending. Given the constructive macroeconomic landscape, investors largely overlooked the uncertainty created by White House trade and other policy initiatives. In the first nine months of the year, large cap growth stocks dominated investment returns, as they did in 2017, leaving behind the mid and large cap value names that we tend to prefer.
The fourth quarter saw low double digit losses by the broad market indices, as uncertainty and volatility increased significantly, with defensive names within Utilities and large cap Health Care performing the best by a wide margin, as investors moved to safety.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Stock selection detracted from performance in a number of sectors. Stock selection in Hotels, Restaurants, and Leisure hurt results in Consumer Discretionary, and the Portfolio’s positions also did not keep
pace with the strong returns in Internet & Direct Marketing Retail. In Health Care, holdings in Pharmaceuticals and Biotechnology were mostly responsible for the shortfall. Energy was another notable source of relative weakness. Although the Portfolio’s weight to Energy was reduced during the year by trimming or eliminating some holdings, the remaining positons were still hit hard, as the market focused on the global slowdown, hurting demand. We continue to believe our remaining holdings are attractive investments through the cycle, as long as crude oil stays within a range of$45-70/barrel. Financials was the other large detractor in 2018, as holdings in Capital Markets and Insurance lagged the overall sector.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The three largest relative contributors were:
Twenty-First Century Fox, Inc. Class A has been a strong performer over the past twelve months, and its shares rose again near the end of the period after The Walt Disney Co. (“Disney”) was forced to raise its bid for the company to $38 per share (plus the New Fox spin off). There was additional performance generated when the Department of Justice’s anti-trust division granted approval for Disney much earlier than expected.(1)
SeaWorld Entertainment, Inc. posted very strong results with operating performance that exceeded expectations, giving credence to our expectations of a turnaround at the company. This has been a low expectation stock, where its management has multiple levers available to continue to improve its earnings and free cash flow profile. We continue to believe there is material upside in the shares at current levels if execution improves.(1)
PTC, Inc. develops software products and solutions. Sales were better than expected, giving us confidence in the strength of the company’s end markets. The company also announced plans to offer subscription only products, starting in January 2019, and enjoyed continued success in its Internet of Things (“IoT”) division. We think the transition to a subscription model and IoT growth are catalysts for better earnings, while we continue to see steady market share opportunity in the company’s core business.(1)
The three largest relative detractors were:
Not owning Amazon.com, Inc., which strongly contributed to the benchmark’s total return, hurt performance relative to the benchmark.(1)
Shares of International Game Technology PLC (“IGT”) were weak for several reasons. First and foremost, the entire global gaming sector has been under pressure due to hedge fund liquidation, as well as the unsubstantiated fears that the new Italian government may materially alter gaming and lottery regulations and taxes, or would perhaps exit the European Union (“EU”). Italy is about 30% of IGT’s earnings before interest, taxes, depreciation, and amortization (“EBITDA”). In our view, fundamentals remain sound, and the company has delivered earningsin-line or above expectations for the last three quarters. We like the core lottery business as a recurring, steady cash generator and believe there is an accelerating turnaround for its U.S.-focused slot machine business.(1)
Liberty Global PLC Class C (“Liberty”) announced the sales of its assets in Germany, Hungary, Romania, and the Czech Republic to Vodafone Group PLC (“Vodafone”). Despite the premium valuation, high cash proceeds and tax efficiency on the sale, shares were down as investors focused on the assets remaining in the corporate structure: the U.K., Switzerland and Belgium, all of which are lower growth markets. We view this as the right strategic deal and continue to view Liberty’s valuation as extremely attractive with a compelling risk/return outlook, especially with a more
19 | (continued) |
Ohio National Fund, Inc. | ON Capital Appreciation Portfolio (Unaudited) (Continued) |
focused structure and collection of assets. Revenue and cash flow in the most recent quarter were better than expected. We continue to see material upside in the shares after the Vodafone deal closes in 2019.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.The Portfolio participated in several IPO’s during the period that contributed slightly negatively to performance, including Siemens Healthineers AG (5 basis points), Eventbrite, Inc.(-1 basis point), GrafTech International Ltd.(-5 basis points) and YETI Holdings, Inc.(-10 basis points).(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P 500 Index is a capitalization-weighted index designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018 (1) |
% of Net Assets | ||||
Common Stocks(4) | 95.6 | |||
Money Market Funds and | 4.4 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Microsoft Corp. | 2.1 | ||||
2. | Alphabet, Inc. Class C | 2.1 | ||||
3. | Union Pacific Corp. | 2.0 | ||||
4. | Merck & Co., Inc. | 2.0 | ||||
5. | JPMorgan Chase & Co. | 1.8 | ||||
6. | MetLife, Inc. | 1.8 | ||||
7. | QUALCOMM, Inc. | 1.8 | ||||
8. | Walmart, Inc. | 1.7 | ||||
9. | Bristol-Myers Squibb Co. | 1.7 | ||||
10. | Apple, Inc. | 1.7 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Information Technology | 14.4 | |||
Financials | 14.3 | |||
Consumer Discretionary | 14.0 | |||
Health Care | 13.7 | |||
Industrials | 12.7 | |||
Communication Services | 8.6 | |||
Materials | 6.7 | |||
Energy | 5.6 | |||
Consumer Staples | 4.3 | |||
Real Estate | 1.3 | |||
|
| |||
95.6 | ||||
|
|
20
Ohio National Fund, Inc. | ON Capital Appreciation Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 95.6% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 8.6% |
| |||||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 1,905 | $ | 1,972,837 | |||||||
Comcast Corp. Class A (Media) | 30,309 | 1,032,022 | ||||||||||
Inmarsat PLC (Diversified Telecom. Svs.) | (b | ) | 166,948 | 806,220 | ||||||||
Liberty Global PLC Class C (Media) | (a | ) | 60,564 | 1,250,041 | ||||||||
Spotify Technology SA (Entertainment) | (a | ) | 5,334 | 605,409 | ||||||||
Twenty-First Century Fox, Inc. Class A (Entertainment) | 21,175 | 1,018,941 | ||||||||||
Viacom, Inc. Class B (Entertainment) | 50,006 | 1,285,154 | ||||||||||
|
| |||||||||||
7,970,624 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 14.0% |
| |||||||||||
Carnival Corp. (Hotels, Restaurants & Leisure) | 14,715 | 725,450 | ||||||||||
Extended Stay America, Inc. (Hotels, | ||||||||||||
Restaurants & Leisure) | 71,019 | 1,100,795 | ||||||||||
Houghton Mifflin Harcourt Co. (Diversified Consumer Svs.) | (a | ) | 131,675 | 1,166,640 | ||||||||
Hyatt Hotels Corp. Class A (Hotels, Restaurants & Leisure) | 10,696 | 723,050 | ||||||||||
International Game Technology PLC (Hotels, Restaurants & Leisure) | 96,657 | 1,414,092 | ||||||||||
Laureate Education, Inc. Class A (Diversified Consumer Svs.) | (a | ) | 98,157 | 1,495,913 | ||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 52,555 | 1,274,984 | ||||||||||
Playa Hotels & Resorts N.V. (Hotels, Restaurants & Leisure) | (a | ) | 131,731 | 947,146 | ||||||||
Qurate Retail, Inc. (Internet & Direct Marketing Retail) | (a | ) | 49,550 | 967,216 | ||||||||
SeaWorld Entertainment, Inc. (Hotels, Restaurants & Leisure) | (a | ) | 48,116 | 1,062,882 | ||||||||
Tapestry, Inc. (Textiles, Apparel & Luxury Goods) | 40,150 | 1,355,062 | ||||||||||
YETI Holdings, Inc. (Leisure Products) | (a | ) | 57,016 | 846,117 | ||||||||
|
| |||||||||||
13,079,347 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 4.3% | ||||||||||||
Mondelez International, Inc. Class A (Food Products) | 38,190 | 1,528,746 | ||||||||||
Philip Morris International, Inc. (Tobacco) | 13,043 | 870,750 | ||||||||||
Walmart, Inc. (Food & Staples Retailing) | 17,526 | 1,632,547 | ||||||||||
|
| |||||||||||
4,032,043 | ||||||||||||
|
| |||||||||||
ENERGY – 5.6% | ||||||||||||
Anadarko Petroleum Corp. (Oil, Gas & Consumable Fuels) | 25,244 | 1,106,697 | ||||||||||
Concho Resources, Inc. (Oil, Gas & Consumable Fuels) | (a | ) | 10,690 | 1,098,825 | ||||||||
Noble Energy, Inc. (Oil, Gas & Consumable Fuels) | 57,761 | 1,083,596 | ||||||||||
Royal Dutch Shell PLC Class A – ADR (Oil, Gas & Consumable Fuels) | 16,035 | 934,359 | ||||||||||
TechnipFMC PLC (Energy Equip. & Svs.) | 50,746 | 993,607 | ||||||||||
|
| |||||||||||
5,217,084 | ||||||||||||
|
| |||||||||||
FINANCIALS – 14.3% | ||||||||||||
Brighthouse Financial, Inc. (Insurance) | (a | ) | 19,913 | 606,948 | ||||||||
Chubb Ltd. (Insurance) | 7,464 | 964,199 | ||||||||||
Citigroup, Inc. (Banks) | 27,931 | 1,454,088 | ||||||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 8,760 | 1,463,358 | ||||||||||
JPMorgan Chase & Co. (Banks) | 17,153 | 1,674,476 | ||||||||||
MetLife, Inc. (Insurance) | 40,713 | 1,671,676 | ||||||||||
Moelis & Co. Class A (Capital Markets) | 30,469 | 1,047,524 | ||||||||||
Morgan Stanley (Capital Markets) | 21,114 | 837,170 | ||||||||||
Pinnacle Financial Partners, Inc. (Banks) | 18,249 | 841,279 | ||||||||||
PNC Financial Services Group, Inc. / The (Banks) | 11,712 | 1,369,250 | ||||||||||
Wells Fargo & Co. (Banks) | 29,774 | 1,371,986 | ||||||||||
|
| |||||||||||
13,301,954 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 13.7% | ||||||||||||
Alexion Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 10,296 | 1,002,418 | ||||||||
Allergan PLC (Pharmaceuticals) | 11,076 | 1,480,418 | ||||||||||
AstraZeneca PLC – ADR (Pharmaceuticals) | 26,404 | 1,002,824 | ||||||||||
BioMarin Pharmaceutical, Inc. (Biotechnology) | (a | ) | 14,166 | 1,206,235 |
Common Stocks (Continued) | Shares | Value | ||||||||||
HEALTH CARE (continued) | ||||||||||||
Bristol-Myers Squibb Co. (Pharmaceuticals) | 30,477 | $ | 1,584,194 | |||||||||
Celgene Corp. (Biotechnology) | (a | ) | 17,223 | 1,103,822 | ||||||||
Centene Corp. (Health Care Providers & Svs.) | (a | ) | 8,412 | 969,904 | ||||||||
Cigna Corp. (Health Care Providers & Svs.) | 7,980 | 1,515,562 | ||||||||||
Merck & Co., Inc. (Pharmaceuticals) | 23,978 | 1,832,159 | ||||||||||
UnitedHealth Group, Inc. (Health Care Providers & Svs.) | 4,157 | 1,035,592 | ||||||||||
|
| |||||||||||
12,733,128 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 12.7% | ||||||||||||
Arcosa, Inc. (Construction & Engineering) | (a | ) | 22,210 | 614,995 | ||||||||
Beacon Roofing Supply, Inc. (Trading Companies & Distributors) | (a | ) | 31,512 | 999,561 | ||||||||
Bombardier, Inc. Class B (Aerospace & Defense) | (a | ) | 345,441 | 513,658 | ||||||||
Delta Air Lines, Inc. (Airlines) | 23,265 | 1,160,923 | ||||||||||
Emerson Electric Co. (Electrical Equip.) | 19,879 | 1,187,770 | ||||||||||
GrafTech International Ltd. (Electrical Equip.) | 53,825 | 615,758 | ||||||||||
ManpowerGroup, Inc. (Professional Svs.) | 8,420 | 545,616 | ||||||||||
Mobile Mini, Inc. (Commercial Svs. & Supplies) | 15,940 | 506,095 | ||||||||||
Nielsen Holdings PLC (Professional Svs.) | 62,969 | 1,469,067 | ||||||||||
Trinity Industries, Inc. (Machinery) | 51,721 | 1,064,935 | ||||||||||
Union Pacific Corp. (Road & Rail) | 13,839 | 1,912,965 | ||||||||||
United Technologies Corp. (Aerospace & Defense) | 12,143 | 1,292,987 | ||||||||||
|
| |||||||||||
11,884,330 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 14.4% |
| |||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 9,844 | 1,552,793 | ||||||||||
BlackBerry Ltd. (Software) | (a | ) | 135,054 | 960,234 | ||||||||
FireEye, Inc. (Software) | (a | ) | 43,315 | 702,136 | ||||||||
FLIR Systems, Inc. (Electronic Equip., Instr. & Comp.) | 21,047 | 916,386 | ||||||||||
Lam Research Corp. (Semiconductors & Equip.) | 4,068 | 553,940 | ||||||||||
Microsoft Corp. (Software) | 19,650 | 1,995,850 | ||||||||||
PTC, Inc. (Software) | (a | ) | 9,438 | 782,410 | ||||||||
Pure Storage, Inc. Class A (Tech. Hardware, Storage & Periph.) | (a | ) | 43,660 | 702,053 | ||||||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 28,826 | 1,640,488 | ||||||||||
Teradata Corp. (Software) | (a | ) | 36,112 | 1,385,256 | ||||||||
Verint Systems, Inc. (Software) | (a | ) | 31,987 | 1,353,370 | ||||||||
Verra Mobility Corp. (IT Svs.) | (a | ) | 92,897 | 906,675 | ||||||||
|
| |||||||||||
13,451,591 | ||||||||||||
|
| |||||||||||
MATERIALS – 6.7% | ||||||||||||
Agnico Eagle Mines Ltd. (Metals & Mining) | 29,238 | 1,181,215 | ||||||||||
Albemarle Corp. (Chemicals) | 8,875 | 683,996 | ||||||||||
DowDuPont, Inc. (Chemicals) | 25,568 | 1,367,377 | ||||||||||
Graphic Packaging Holding Co. (Containers & Packaging) | 108,683 | 1,156,387 | ||||||||||
Lundin Mining Corp. (Metals & Mining) | 221,800 | 916,314 | ||||||||||
Summit Materials, Inc. Class A (Construction Materials) | (a | ) | 74,919 | 928,996 | ||||||||
|
| |||||||||||
6,234,285 | ||||||||||||
|
| |||||||||||
REAL ESTATE – 1.3% | ||||||||||||
CoreCivic, Inc. (Equity REIT) | 66,602 | 1,187,514 | ||||||||||
|
| |||||||||||
Total Common Stocks | $ | 89,091,900 | ||||||||||
|
| |||||||||||
Money Market Funds – 1.2% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (c | ) | 1,090,296 | $ | 1,090,187 | |||||||
State Street Institutional U.S. Government Money Market Fund Institutional Class, 2.27% | 70,000 | 70,000 | ||||||||||
|
| |||||||||||
Total Money Market Funds | $ | 1,160,187 | ||||||||||
|
| |||||||||||
Total Investments – 96.8% | (d | ) | $ | 90,252,087 | ||||||||
Other Assets in Excess of Liabilities – 3.2% | 2,978,267 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 93,230,354 | ||||||||||
|
|
21 | (continued) |
Ohio National Fund, Inc. | ON Capital Appreciation Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $806,220 or 0.9% of the Portfolio’s net assets. |
(c) | Rate represents theseven-day yield at December 31, 2018. |
(d) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
22
Ohio National Fund, Inc. | ON International Equity Portfolio (Unaudited) |
Objective/Strategy |
The ON International Equity Portfolio seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in equity securities of foreign companies.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -13.33 | % | ||
Five years | -1.15 | % | ||
Ten years | 5.63 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 1.06% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON International Equity Portfolio returned-13.33% versus-13.79% for its current benchmark, the MSCI EAFE Index (Net – USD).
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The Portfolio aims to outperform its benchmark by approximately 200 – 300 bps over a full market cycle with a consistent pattern of performance. Historically, the strategy has added more value versus the benchmark when markets are fundamentally driven in both down markets and moderately rising markets, as opposed tolow-quality-led, rapidly rising markets.
Global equities declined significantly in 2018, as investor sentiment was undermined by global macroeconomic and geopolitical trends, including interest rate pressures, trade disputes, and populism. Riskier assets around the world sold off, with many generating their worst calendar-year performance since the global financial crisis a decade ago. The MSCI EAFE Index declined 12.5% in the fourth quarter and was down 13.8% in 2018. Emerging markets equities (represented by the MSCI Emerging Markets Index) fell less in the fourth quarter by declining 7.5%, but they fell dramatically earlier in the year and ended 2018 down 14.6%. U.S. equities joined the rout, plunging 13.5% in the quarter and ending the year down 4.4%. These returns are notable given the outperformance of U.S. equities over international equities over much of the past decade. In the fourth quarter, international equities outperformed U.S. equities by about 100 basis points (bps). In December, the margin of outperformance by international equities over U.S. equities was more than 400 bps.
Q. How did country selection impact the Portfolio’s performance relative to its benchmark?
A.The Portfolio’s overall country allocation effect was negative, while stock selection was positive. Much of the negative allocation effect can be attributed to emerging markets countries, which wereout-of-benchmark exposures. Emerging markets, in aggregate, hurt relative performance by the widest margin.(1)
The decline of investor confidence in 2018 was most pronounced in emerging markets equities, which fell 14.6% for the year. Most of these losses occurred earlier in the year, before the decline in developed markets. Some of this performance reflected the fact that emerging markets generated extraordinary returns in 2017 and that the asset class is relatively volatile. However, the downturn was also due to a significant shift in investor sentiment from the beginning of the year, when confidence was high, as the major global economies appeared to be growing together, and investors expected healthy earnings. Within a few months, however, U.S. economic growth, boosted by tax cuts and fiscal stimulus, appeared to diverge from the rest of the world. Relatively strong U.S. growth supported further Fed rate hikes, which in turn boosted the U.S. dollar early in the year.
The rising dollar put pressure on emerging markets in general, but investors focused on countries with high current account deficits and/or significant holdings of U.S. dollar–denominated debt. Argentina’s equity markets plunged almost 51% in 2018, while the value of the peso dropped by almost half. In Turkey, uncertainty related to the country’s trade deficit was exacerbated by U.S. sanctions and a diplomatic dispute with the United States. The Turkish lira slid more than 28%, while Turkish equities fell 41.0%.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For stock selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Lazard’s relative value investment philosophy is based on value creation through the process ofbottom-up stock selection. This philosophy is implemented by assessing thetrade-off between valuation and financial productivity for an individual security. As such, sector and country/regional weightings are a residual of our bottom up stock selection process. Our attribution has historically been primarily driven by stock selection.
Relative returns were helped most by stock selection in the Consumer Discretionary sector and stock selection in the underweighted Materials sector.(1)
Relative returns were hurt most by stock selection and an underweight in the Consumer Staples sector (a defensive sector that defended during the pullback). Stock selection in the Energy sector also detracted meaningfully from the Portfolio’s performance.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Top Relative Contributors:
● Don Quijote Holdings Co. Ltd. (“Don Quijote”), a Japanese discount retailer that focuses on lower cost household items to drive store traffic, performed well, rising almost 20% during the year ended December 31, 2018. The company announced a favorable, significant transaction with Family Mart, involving Don Quijote taking full control of the struggling Uny chain of stores, while Family Mart tendered for 20% of Don Quijote shares in the market.(1)
23 | (continued) |
Ohio National Fund, Inc. | ON International Equity Portfolio (Unaudited) (Continued) |
● Medtronic PLC, the Irish-domiciled global leader in medical devices, positively impacted performance, rising almost 15%. Our thesis of improving revenue growth from new product launches, coupled with margin expansion from an increased focus on costs, continued to play out.(1)
● Wolters Kluwer N.V., a Netherlands-based publisher and provider of expert information, services, and software solutions for professionals in the legal and compliance, tax and accounting, and medical professions, rose almost 15%. The company operates a subscription model with very high retention rates, high margins, and returns on equity of around 30%. The company converts 95% of its net income into cash, which has driven more than 25 years of dividend growth. Its management’s consistent capital allocation plan of dividend growth and share buybacks has been rewarded. We continue to believe the company’s transformation from digital to expert solutions is likely to drive organic growth and higher margins.(1)
Top Relative Detractors:
● Cielo SA, a leading credit card acquirer in Brazil, declined more than 60%. Credit card penetration remains low in the country, offering the potential for long-term secular growth. Despite positive secular trends, we sold the position, as new competition in the market drove the company to be more aggressive on pricing, which in turn will compress margins in theshort-to-medium term.(1)
● Turkcell Iletisim Hizmetleri AS (“Turkcell”), the largest mobile and fixed line data provider in Turkey, with 70 million subscribers in nine countries, declined more than 60%. During 2018, macroeconomic challenges overwhelmed the stock, as fears regarding the Turkish lira and the presidential election resulted in weak currency, equity, and bond markets. While the fundamentals of the business remained stable, and the valuation of the stock inexpensive, we lost confidence in the fundamentals amidst a rapidly deteriorating economic and political backdrop. As a result, we liquidated the position during the year.(1)
● British American Tobacco PLC declined almost 50%, as the sensitivities around a potential ban of menthol in the U.S. combustibles market made the potential for significant earnings per share (“EPS”) contraction more of a reality. For several quarters, we had thought that the growth algorithm in the combustible business (modest volume declines more than offset by price increases) remained generally intact, despite a short-term volume setback early in the year, and that the stock represented good relative value. However, due to the fact that its management had more recently appeared less confident in their margin outlook, along with the potential menthol ban and high financial leverage of the business model, we deemed the thesis impaired and sold the stock during the period.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The MSCI EAFE Index(Net-USD) is a free-float-adjusted market-capitalization weighted index that is designed to measure the equity market performance of 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada. The returns for this index include the effects of reinvested dividends, net of taxes, and adjustment to U.S. Dollar denomination.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
24 | (continued) |
Ohio National Fund, Inc. | ON International Equity Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) (5) | 94.9 | |||
Preferred Securities(4) (5) | 1.9 | |||
Money Market Funds and Other Net Assets | 3.2 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||||
1. | Novartis AG | 4.3 | ||||||
2. | Royal Dutch Shell PLC | 3.5 | ||||||
3. | Prudential PLC | 3.1 | ||||||
4. | SAP SE | 3.0 | ||||||
5. | Medtronic PLC | 2.9 | ||||||
6. | Daiwa House Industry Co. Ltd. | 2.7 | ||||||
7. | Aon PLC | 2.7 | ||||||
8. | RELX PLC | 2.5 | ||||||
9. | Compass Group PLC | 2.4 | ||||||
10. | Ferguson PLC | 2.4 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Top 10 Country Weightings (Common Stocks, Preferred Securities): |
% of Net Assets | ||||
United Kingdom | 18.3 | |||
Japan | 13.2 | |||
France | 11.4 | |||
Switzerland | 7.6 | |||
Netherlands | 7.0 | |||
Canada | 6.2 | |||
Germany | 5.6 | |||
Ireland | 4.3 | |||
Sweden | 3.4 | |||
Norway | 3.2 |
(5) | Sectors (Common Stocks, Preferred Securities): |
% of Net Assets | ||||
Industrials | 20.3 | |||
Financials | 19.8 | |||
Consumer Discretionary | 9.4 | |||
Communication Services | 9.2 | |||
Consumer Staples | 8.1 | |||
Health Care | 7.9 | |||
Energy | 6.7 | |||
Materials | 5.7 | |||
Information Technology | 5.2 | |||
Real Estate | 2.7 | |||
Utilities | 1.8 | |||
|
| |||
96.8 | ||||
|
|
25
Ohio National Fund, Inc. | ON International Equity Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 94.9% | Shares | Value | ||||||||||
UNITED KINGDOM – 18.3% | ||||||||||||
Aon PLC (Financials) | 95,400 | $ | 13,867,344 | |||||||||
Compass Group PLC (Consumer Discretionary) | (a) | 595,387 | 12,529,811 | |||||||||
Diageo PLC (Consumer Staples) | (a) | 180,580 | 6,452,917 | |||||||||
Howden Joinery Group PLC (Industrials) | (a) | 801,772 | 4,448,634 | |||||||||
Informa PLC (Communication Services) | (a) | 753,162 | 6,045,426 | |||||||||
Melrose Industries PLC (Industrials) | (a) | 2,464,506 | 5,148,608 | |||||||||
Prudential PLC (Financials) | (a) | 894,535 | 15,973,219 | |||||||||
RELX PLC (Industrials) | (a) | 638,221 | 13,160,365 | |||||||||
RSA Insurance Group PLC (Financials) | (a) | 803,183 | 5,271,093 | |||||||||
Unilever PLC (Consumer Staples) | (a) | 226,570 | 11,895,553 | |||||||||
|
| |||||||||||
94,792,970 | ||||||||||||
|
| |||||||||||
JAPAN – 13.2% | ||||||||||||
Daiwa House Industry Co. Ltd. (Real Estate) | (a) | 442,919 | 14,128,417 | |||||||||
Don Quijote Holdings Co. Ltd. (Consumer Discretionary) | (a) | 154,200 | 9,533,649 | |||||||||
Kao Corp. (Consumer Staples) | (a) | 99,610 | 7,372,894 | |||||||||
Makita Corp. (Industrials) | (a) | 201,700 | 7,163,590 | |||||||||
Nexon Co. Ltd. (Communication Services) | (a)(b) | 562,000 | 7,255,153 | |||||||||
Shin-Etsu Chemical Co. Ltd. (Materials) | (a) | 92,800 | 7,130,084 | |||||||||
Sumitomo Mitsui Financial Group, Inc. (Financials) | (a) | 258,600 | 8,524,764 | |||||||||
Suzuki Motor Corp. (Consumer Discretionary) | (a) | 48,800 | 2,460,077 | |||||||||
Yamaha Corp. (Consumer Discretionary) | (a) | 113,300 | 4,819,708 | |||||||||
|
| |||||||||||
68,388,336 | ||||||||||||
|
| |||||||||||
FRANCE – 11.4% | ||||||||||||
Air Liquide SA (Materials) | (a) | 65,764 | 8,166,280 | |||||||||
Capgemini SE (Information Technology) | (a) | 77,810 | 7,739,371 | |||||||||
Cie de Saint-Gobain (Industrials) | (a) | 136,486 | 4,530,855 | |||||||||
Cie Generale des Etablissements Michelin SCA (Consumer Discretionary) | (a) | 48,333 | 4,757,271 | |||||||||
Safran SA (Industrials) | (a) | 94,668 | 11,353,999 | |||||||||
Societe Generale SA (Financials) | (a) | 141,956 | 4,500,650 | |||||||||
Vinci SA (Industrials) | (a) | 101,084 | 8,312,335 | |||||||||
Vivendi SA (Communication Services) | (a) | 392,993 | 9,525,094 | |||||||||
|
| |||||||||||
58,885,855 | ||||||||||||
|
| |||||||||||
SWITZERLAND – 7.6% | ||||||||||||
Ferguson PLC (Industrials) | (a) | 191,682 | 12,248,134 | |||||||||
Julius Baer Group Ltd. (Financials) | (a) | 134,714 | 4,800,736 | |||||||||
Novartis AG (Health Care) | (a) | 259,082 | 22,188,868 | |||||||||
|
| |||||||||||
39,237,738 | ||||||||||||
|
| |||||||||||
NETHERLANDS – 7.0% | ||||||||||||
ABN AMRO Group N.V. (Financials) | (a) | 261,692 | 6,158,094 | |||||||||
Koninklijke DSM N.V. (Materials) | (a) | 47,056 | 3,817,450 | |||||||||
Royal Dutch Shell PLC (Energy) | (a) | 612,537 | 18,028,697 | |||||||||
Wolters Kluwer N.V. (Industrials) | (a) | 140,789 | 8,279,404 | |||||||||
|
| |||||||||||
36,283,645 | ||||||||||||
|
| |||||||||||
CANADA – 6.2% | ||||||||||||
Canadian National Railway Co. (Industrials) | 73,000 | 5,406,556 | ||||||||||
National Bank of Canada (Financials) | 150,044 | 6,160,245 | ||||||||||
Rogers Communications, Inc. Class B (Communication Services) | 202,100 | 10,356,663 | ||||||||||
Suncor Energy, Inc. (Energy) | 374,400 | 10,456,982 | ||||||||||
|
| |||||||||||
32,380,446 | ||||||||||||
|
| |||||||||||
IRELAND – 4.3% | ||||||||||||
Medtronic PLC (Health Care) | 166,570 | 15,151,207 | ||||||||||
Ryanair Holdings PLC – ADR (Industrials) | (b) | 100,820 | 7,192,499 | |||||||||
|
| |||||||||||
22,343,706 | ||||||||||||
|
| |||||||||||
GERMANY – 3.7% | ||||||||||||
Fresenius SE & Co. KGaA (Health Care) | (a) | 78,678 | 3,802,830 | |||||||||
SAP SE (Information Technology) | (a) | 157,250 | 15,607,003 | |||||||||
|
| |||||||||||
19,409,833 | ||||||||||||
|
|
Common Stocks (Continued) | Shares | Value | ||||||||||||||
SWEDEN – 3.4% | ||||||||||||||||
Assa Abloy AB Class B (Industrials) | (a) | 581,631 | $ | 10,415,145 | ||||||||||||
Epiroc AB Class A (Industrials) | (a)(b) | 767,207 | 7,292,006 | |||||||||||||
|
| |||||||||||||||
17,707,151 | ||||||||||||||||
|
| |||||||||||||||
NORWAY – 3.2% | ||||||||||||||||
Equinor ASA (Energy) | (a) | 287,448 | 6,097,382 | |||||||||||||
Telenor ASA (Communication Services) | (a) | 538,806 | 10,463,771 | |||||||||||||
|
| |||||||||||||||
16,561,153 | ||||||||||||||||
|
| |||||||||||||||
FINLAND – 3.0% | ||||||||||||||||
Nordea Bank Abp (Financials) | (a) | 884,182 | 7,443,218 | |||||||||||||
Sampo Oyj (Financials) | (a) | 178,430 | 7,907,955 | |||||||||||||
|
| |||||||||||||||
15,351,173 | ||||||||||||||||
|
| |||||||||||||||
SINGAPORE – 2.7% | ||||||||||||||||
DBS Group Holdings Ltd. (Financials) | (a) | 570,420 | 9,919,515 | |||||||||||||
NetLink NBN Trust (Communication Services) | (a) | 7,461,700 | 4,188,122 | |||||||||||||
|
| |||||||||||||||
14,107,637 | ||||||||||||||||
|
| |||||||||||||||
AUSTRALIA – 2.0% | ||||||||||||||||
BHP Group PLC (Materials) | (a) | 498,432 | 10,532,372 | |||||||||||||
|
| |||||||||||||||
SPAIN – 1.8% | ||||||||||||||||
Red Electrica Corp. SA (Utilities) | (a) | 424,460 | 9,465,545 | |||||||||||||
|
| |||||||||||||||
BELGIUM – 1.8% | ||||||||||||||||
Anheuser-Busch InBev SA/N.V. (Consumer Staples) | (a) | 140,098 | 9,229,512 | |||||||||||||
|
| |||||||||||||||
INDIA – 1.4% | ||||||||||||||||
ICICI Bank Ltd. – ADR (Financials) | 727,610 | 7,487,107 | ||||||||||||||
|
| |||||||||||||||
DENMARK – 1.4% | ||||||||||||||||
Carlsberg A/S Class B (Consumer Staples) | (a) | 70,220 | 7,469,938 | |||||||||||||
|
| |||||||||||||||
HONG KONG – 1.0% | ||||||||||||||||
Techtronic Industries Co. Ltd. (Consumer Discretionary) | (a) | 923,000 | 4,898,050 | |||||||||||||
|
| |||||||||||||||
ISRAEL – 0.8% | ||||||||||||||||
Bank LeumiLe-Israel BM (Financials) | (a) | 673,469 | 4,071,127 | |||||||||||||
|
| |||||||||||||||
SOUTH KOREA – 0.7% | ||||||||||||||||
Samsung Electronics Co. Ltd. (Information Technology) | (a) | 108,157 | 3,765,128 | |||||||||||||
|
| |||||||||||||||
Total Common Stocks (Cost $554,595,179) | $ | 492,368,422 | ||||||||||||||
|
| |||||||||||||||
Preferred Securities – 1.9% | Rate | Quantity | Value | |||||||||||||
GERMANY – 1.9% | ||||||||||||||||
Volkswagen AG | (a | ) | (c) | 61,446 | $ | 9,797,901 | ||||||||||
|
| |||||||||||||||
Total Preferred Securities (Cost $11,567,557) | $9,797,901 | |||||||||||||||
|
| |||||||||||||||
Money Market Funds – 3.2% | Shares | Value | ||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (d | ) | 16,569,357 | $ | 16,567,700 | |||||||||||
|
| |||||||||||||||
Total Money Market Funds (Cost $16,568,367) | $ | 16,567,700 | ||||||||||||||
|
| |||||||||||||||
Total Investments – 100.0% (Cost $582,731,103) | (e | ) | $ | 518,734,023 | ||||||||||||
Other Assets in Excess of Liabilities – 0.0% | 22,971 | |||||||||||||||
|
| |||||||||||||||
Net Assets – 100.0% | $ | 518,756,994 | ||||||||||||||
|
|
26 | (continued) |
Ohio National Fund, Inc. | ON International Equity Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: | American Depositary Receipts |
Footnotes:
(a) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $426,087,720 or 82.1% of the Portfolio’s net assets. |
(b) | Non-income producing security. |
(c) | Payout is the rate of the company’s ordinary common stock dividend per share + 6 cents per share. |
(d) | Rate represents theseven-day yield at December 31, 2018. |
(e) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
27
Ohio National Fund, Inc. | ON Foreign Portfolio (Unaudited) |
Objective/Strategy |
The ON Foreign Portfolio seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in foreign securities.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -15.62 | % | ||
Five years | -1.37 | % | ||
Ten years | 7.75 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 1.22% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Foreign Portfolio returned-15.62% versus-14.20% for its current benchmark, the MSCI All Country WorldEx-USA Index (Net – USD).
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.Broader macroeconomic and policy conditions have presented challenges for international value investors. In security analysis, applying a low discount rate to high future cash flows maximizes the net present value of an asset. That is effectively what central bank policies have done over the course of this cycle: keep discount (i.e., interest) rates low and profit expectations high. Unsurprisingly, the effects have been most acute where expectations were the highest: the United States, due to President Donald Trump’spro-cyclical fiscal stimulus, and the Information Technology sector, due to optimistic growth assumptions and long-dated cash flows. Value investors focused outside of the U.S. have not participated in the structural tailwind associated with domestic growth stocks.
Q. How did country selection impact the Portfolio’s performance relative to the benchmark?
A.From a regional standpoint, Europe was the biggest detractor from relative performance, pressured by stock-level weakness in the United Kingdom (“U.K.”) during a period when Brexit turmoil escalated. Given high political uncertainty and a wide range of near-term outcomes in the U.K., we have tried to avoid companies overly exposed to the domestic economy and focused, instead, on what we viewed as lowly valued multinational companies with geographically diverse operations and minimal (or inverse) exposure to a volatile British pound. In our analysis, Europe remains excessively cheap and positioned for recovery following its protracted weakness.(1)
Positioning in Asia hindered relative results to a lesser degree, as relative weakness in South Korea offset relative strength in China. The negative impact of trade wars and economic imbalances in China became increasingly apparent as the period progressed and data softened. While officials will continue to pursue a more sustainable economic model by deleveraging,de-risking and closing excess capacity over the long term, we believe near-term pressures will probably necessitate easier policy in 2019. From an investment standpoint, Chinese companies still offer an attractive combination of high organic growth and cheap valuations, in our view, though opportunities are selective. To this end, we have largely avoided state-controlled industries plagued by excessive leverage and capacity, focusing instead on lowly valued consumer- and service-oriented sectors we believe are likely to capture an increasing share of China’s future economic growth.(1)
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Stock selection in Consumer Staples, Communication Services and Energy contributed to relative results, most notably Consumer Staples, while stock selection in Consumer Discretionary, Financials and Industrials detracted. Overweighted allocations in Health Care and Energy, and an underweighting in Consumer Discretionary, contributed to performance relative to the benchmark, while underweighted allocations in Consumer Staples, Utilities and Real Estate detracted.(1)
The benchmark benefited from its higher exposure to traditionally defensive sectors, such as Consumer Staples and Utilities, during a period of rising risk aversion. We are finding limited value opportunities in these sectors. Utilities are broadly expensive, considering the potential impacts of weaker economic growth and increasing regulatory interference on power demand and industry pricing. Meanwhile, Consumer Staples stocks have long looked expensive, and we remained underweight in the sector. Among defensive sectors, we are finding more compelling opportunities in Health Care. Unlike Consumer Staples or Utilities, Health Care is less of a simple bond proxy, offering defensiveness independent of rate fluctuations. The sector also offers growth through innovation and untapped market potential. Indeed, over the past five years, Pharmaceuticals industry revenue growth has well exceeded that of the broader market.(1)
During the period, the U.S. dollar rose in value against most foreign currencies. This hurt the Portfolio’s performance because investments in securities withnon-U.S. currency exposure lost value as the U.S. dollar rose.
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Top Contributors:
● SES SA, a Luxembourg Communication Services company focusing on satellite and group communications. Shares advanced after recent results showed stabilization in the firm’s video business as well as better-than-expected growth in other key segments. Recent progress highlights some of the positive changes being delivered by a new management team that is working to repair the balance sheet and seize long-term growth opportunities.(1)
● China Telecom Corp. Ltd., a China-based provider of wireline and mobile telecommunications services. The stock rallied after confirming its entry into the Philippines market, as their third major service provider. Despite
28 | (continued) |
Ohio National Fund, Inc. | ON Foreign Portfolio (Unaudited) (Continued) |
the company’s recent strength, broader industry concerns seem to be overshadowing its solid operating performance and attractive valuation, and we remain holders in anticipation of additional upside potential.(1)
● Softbank Group (“Softbank”), a Japanese Information Technology and Telecommunication Services provider. Shares advanced as investors looked forward to the firm’s expected merger of its U.S. wireless business, IPO of the company’s domestic telecommunications operations, and improved disclosures relating to its Vision Fund investment vehicle. As the company’s valuation discount narrowed, Softbank’s share price rose to levels we considered fair value and we realized profits on our position.(1)
Top Detractors:
● BNP Paribas SA (“BNP”), a France-based banking and financial services provider. Shares declined after the firm reported weak results from its bond trading business and struggled to grow revenues amid concerns aboutrecord-low interest rates, escalating trade tensions and political turmoil in France and Italy. Such negative headlines have resulted in an underappreciation of BNP’s diversity, stability, return profile and dividend payout. Trading at what we consider a considerable discount to tangible book value, and with a dividend yield that exceeds itsprice-to-earnings ratio, we believe BNP is significantly undervalued on a long-term investment horizon.(1)
● Capita PLC, a U.K. business processes outsourcing company. Shares corrected sharply after management announced plans to halt dividends and sell shares to raise capital. The emergence of new information required a reassessment of our investment thesis; with fundamentals deteriorating, valuations no longer appeared to be supportive and we liquidated the position.(1)
● Alamos Gold, Inc. Class A (“Alamos”), a Canada-based gold mining company. Alamos performed poorly in 2018 due to disappointingly low production and high costs at one of its Canadian mines, as well as concerns about permit delays at a Turkish asset. At current valuations, we believe the firm’s Turkish assets are being ascribed no value. In our analysis, with a net cash balance sheet and a credible plan to lower production costs, the stock could offer significant upside potential if gold prices rise or operational progress is achieved.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The MSCI All Country WorldEx-USA Index(Net-USD) is a free float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI All Country World Index (ACWI) consists of 23 developed and 24 emerging market country indices, while the MSCI All Country WorldEx-USA Index specifically excludes the impact of the United States. The returns presented for this index include the effects of reinvested dividends, net of taxes, and adjustment to U.S. Dollar denomination.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
29 | (continued) |
Ohio National Fund, Inc. | ON Foreign Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4)(5) | 96.8 | |||
Money Market Funds and Other Net Assets | 3.2 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, 2018(1) (2) (3) |
% of Net Assets | ||||||
1. | Samsung Electronics Co. Ltd. | 4.1 | ||||
2. | BP PLC | 3.2 | ||||
3. | Roche Holding AG | 3.0 | ||||
4. | Royal Dutch Shell PLC | 2.9 | ||||
5. | Standard Chartered PLC | 2.9 | ||||
6. | Sanofi | 2.6 | ||||
7. | TOTAL SA | 2.4 | ||||
8. | BNP Paribas SA | 2.3 | ||||
9. | Oracle Corp. | 2.2 | ||||
10. | Eni SpA | 2.2 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Top 10 Country Weightings (Common Stocks): |
% of Net Assets | ||||
United Kingdom | 14.4 | |||
France | 10.8 | |||
Japan | 9.4 | |||
South Korea | 8.5 | |||
Netherlands | 8.5 | |||
China | 7.8 | |||
Germany | 7.1 | |||
Switzerland | 4.9 | |||
Canada | 4.2 | |||
United States | 3.7 |
(5) | Sectors (Common Stocks): |
% of Net Assets | ||||
Financials | 19.1 | |||
Health Care | 15.6 | |||
Energy | 13.0 | |||
Communication Services | 11.1 | |||
Information Technology | 10.5 | |||
Industrials | 8.5 | |||
Materials | 8.0 | |||
Consumer Discretionary | 4.3 | |||
Consumer Staples | 3.1 | |||
Utilities | 2.9 | |||
Real Estate | 0.7 | |||
|
| |||
96.8 | ||||
|
|
30
Ohio National Fund, Inc. | ON Foreign Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 96.8% | Shares | Value | ||||||||||
UNITED KINGDOM – 14.4% | ||||||||||||
BAE Systems PLC (Industrials) | (a) | 79,808 | $ | 466,785 | ||||||||
Barclays PLC (Financials) | (a) | 356,147 | 681,405 | |||||||||
BP PLC (Energy) | (a) | 280,390 | 1,772,538 | |||||||||
Cobham PLC (Industrials) | (a)(b) | 308,586 | 384,747 | |||||||||
HSBC Holdings PLC (Financials) | (a) | 126,851 | 1,046,487 | |||||||||
Johnson Matthey PLC (Materials) | (a) | 22,402 | 799,877 | |||||||||
Kingfisher PLC (Consumer Discretionary) | (a) | 245,290 | 644,939 | |||||||||
Standard Chartered PLC (Financials) | (a) | 206,634 | 1,605,889 | |||||||||
Vodafone Group PLC (Communication Services) | (a) | 276,684 | 537,953 | |||||||||
|
| |||||||||||
7,940,620 | ||||||||||||
|
| |||||||||||
FRANCE – 10.8% | ||||||||||||
AXA SA (Financials) | (a) | 34,143 | 736,871 | |||||||||
BNP Paribas SA (Financials) | (a) | 27,325 | 1,234,016 | |||||||||
Cie de Saint-Gobain (Industrials) | (a) | 7,745 | 257,107 | |||||||||
Cie Generale des Etablissements Michelin SCA (Consumer Discretionary) | (a) | 4,335 | 426,681 | |||||||||
Sanofi (Health Care) | (a) | 16,240 | 1,408,817 | |||||||||
TOTAL SA (Energy) | (a) | 24,642 | 1,299,745 | |||||||||
Veolia Environnement SA (Utilities) | (a) | 29,402 | 602,129 | |||||||||
|
| |||||||||||
5,965,366 | ||||||||||||
|
| |||||||||||
JAPAN – 9.4% | ||||||||||||
Astellas Pharma, Inc. (Health Care) | (a) | 40,400 | 516,175 | |||||||||
Ezaki Glico Co. Ltd. (Consumer Staples) | (a) | 7,900 | 401,087 | |||||||||
Mitsui Fudosan Co. Ltd. (Real Estate) | (a) | 17,100 | 379,824 | |||||||||
Panasonic Corp. (Consumer Discretionary) | (a) | 75,400 | 677,350 | |||||||||
Seven & I Holdings Co. Ltd. (Consumer Staples) | (a) | 13,600 | 590,989 | |||||||||
Sumitomo Metal Mining Co. Ltd. (Materials) | (a) | 11,000 | 294,574 | |||||||||
Sumitomo Rubber Industries Ltd. (Consumer Discretionary) | (a) | 49,000 | 576,871 | |||||||||
Suntory Beverage & Food Ltd. (Consumer Staples) | (a) | 16,100 | 726,957 | |||||||||
Taiheiyo Cement Corp. (Materials) | (a) | 19,200 | 590,883 | |||||||||
Takeda Pharmaceutical Co. Ltd. (Health Care) | (a) | 13,100 | 444,018 | |||||||||
|
| |||||||||||
5,198,728 | ||||||||||||
|
| |||||||||||
SOUTH KOREA – 8.5% | ||||||||||||
Hana Financial Group, Inc. (Financials) | (a) | 27,721 | 901,565 | |||||||||
KB Financial Group, Inc. (Financials) | (a)(b) | 13,601 | 567,390 | |||||||||
Korea Electric Power Corp. (Utilities) | (a)(b) | 11,965 | 354,423 | |||||||||
Lotte Chemical Corp. (Materials) | (a) | 2,400 | 596,717 | |||||||||
Samsung Electronics Co. Ltd. (Information Technology) | (a) | 65,363 | 2,275,396 | |||||||||
|
| |||||||||||
4,695,491 | ||||||||||||
|
| |||||||||||
NETHERLANDS – 8.5% | ||||||||||||
Flow Traders (Financials) | (a) | 14,424 | 460,392 | |||||||||
ING Groep N.V. (Financials) | (a) | 83,261 | 895,604 | |||||||||
NXP Semiconductors N.V. (Information Technology) | 9,600 | 703,488 | ||||||||||
QIAGEN N.V. (Health Care) | (a)(b) | 8,496 | 290,315 | |||||||||
Royal Dutch Shell PLC (Energy) | (a) | 53,883 | 1,610,966 | |||||||||
SBM Offshore N.V. (Energy) | (a) | 48,507 | 716,712 | |||||||||
|
| |||||||||||
4,677,477 | ||||||||||||
|
| |||||||||||
CHINA – 7.8% | ||||||||||||
Baidu, Inc. – ADR (Communication Services) | (b) | 5,510 | 873,886 | |||||||||
China Life Insurance Co. Ltd. (Financials) | (a) | 352,000 | 744,390 | |||||||||
China Telecom Corp. Ltd. | ||||||||||||
(Communication Services) | (a) | 2,230,000 | 1,142,578 | |||||||||
NetEase, Inc. – ADR (Communication Services) | 2,100 | 494,277 | ||||||||||
Sinopec Engineering Group Co. Ltd. (Industrials) | (a) | 649,800 | 533,368 | |||||||||
Sinopharm Group Co. Ltd. (Health Care) | (a) | 118,400 | 498,494 | |||||||||
|
| |||||||||||
4,286,993 | ||||||||||||
|
| |||||||||||
GERMANY – 7.1% | ||||||||||||
Bayer AG (Health Care) | (a) | 11,898 | 827,491 |
Common Stocks (Continued) | Shares | Value | ||||||||
GERMANY (continued) | ||||||||||
E.ON SE (Utilities) | (a) | 64,263 | $ | 634,360 | ||||||
Gerresheimer AG (Health Care) | (a) | 5,470 | 359,439 | |||||||
Merck KGaA (Health Care) | (a) | 7,733 | 795,977 | |||||||
Siemens AG (Industrials) | (a) | 5,337 | 595,618 | |||||||
Telefonica Deutschland Holding AG (Communication Services) | (a) | 180,529 | 710,547 | |||||||
|
| |||||||||
3,923,432 | ||||||||||
|
| |||||||||
SWITZERLAND – 4.9% | ||||||||||
Landis+Gyr Group AG (Information Technology) | (a) | 5,294 | 298,138 | |||||||
Roche Holding AG (Health Care) | (a) | 6,737 | 1,672,520 | |||||||
UBS Group AG (Financials) | (a) | 56,878 | 709,453 | |||||||
|
| |||||||||
2,680,111 | ||||||||||
|
| |||||||||
CANADA – 4.2% | ||||||||||
Alamos Gold, Inc. Class A (Materials) | 164,300 | 591,480 | ||||||||
Goldcorp, Inc. (Materials) | 45,500 | 445,602 | ||||||||
Husky Energy, Inc. (Energy) | 50,400 | 520,908 | ||||||||
Wheaton Precious Metals Corp. (Materials) | 37,100 | 724,227 | ||||||||
|
| |||||||||
2,282,217 | ||||||||||
|
| |||||||||
UNITED STATES – 3.7% | ||||||||||
Oracle Corp. (Information Technology) | 26,960 | 1,217,244 | ||||||||
Shire PLC (Health Care) | (a) | 14,425 | 839,356 | |||||||
|
| |||||||||
2,056,600 | ||||||||||
|
| |||||||||
HONG KONG – 3.4% | ||||||||||
China Mobile Ltd. (Communication Services) | (a) | 86,500 | 837,025 | |||||||
CK Hutchison Holdings Ltd. (Industrials) | (a) | 104,500 | 1,003,013 | |||||||
|
| |||||||||
1,840,038 | ||||||||||
|
| |||||||||
DENMARK – 2.5% | ||||||||||
AP Moller – Maersk A/S Class B (Industrials) | (a) | 483 | 607,581 | |||||||
Vestas Wind Systems A/S (Industrials) | (a) | 10,222 | 773,791 | |||||||
|
| |||||||||
1,381,372 | ||||||||||
|
| |||||||||
TAIWAN – 2.3% | ||||||||||
Quanta Computer, Inc. (Information Technology) | (a) | 271,000 | 463,822 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Information Technology) | (a) | 113,000 | 820,519 | |||||||
|
| |||||||||
1,284,341 | ||||||||||
|
| |||||||||
ITALY – 2.2% | ||||||||||
Eni SpA (Energy) | (a) | 75,671 | 1,195,390 | |||||||
|
| |||||||||
ISRAEL – 1.9% | ||||||||||
Teva Pharmaceutical Industries Ltd. – ADR (Health Care) | (b) | 67,643 | 1,043,055 | |||||||
|
| |||||||||
SINGAPORE – 1.6% | ||||||||||
Singapore Telecommunications Ltd. (Communication Services) | (a) | 417,600 | 898,773 | |||||||
|
| |||||||||
IRELAND – 1.6% | ||||||||||
Bank of Ireland Group PLC (Financials) | (a) | 99,462 | 553,180 | |||||||
CRH PLC (Materials) | (a) | 12,796 | 338,925 | |||||||
|
| |||||||||
892,105 | ||||||||||
|
| |||||||||
THAILAND – 0.9% | ||||||||||
Bangkok Bank PCL (Financials) | (a) | 22,700 | 144,486 | |||||||
Kasikornbank PCL – Foreign Shares (Financials) | (a) | 17,500 | 99,278 | |||||||
Kasikornbank PCL – NVDR (Financials) | (a) | 46,600 | 265,086 | |||||||
|
| |||||||||
508,850 | ||||||||||
|
| |||||||||
NEW ZEALAND – 0.7% | ||||||||||
SKY Network Television Ltd. (Communication Services) | (a) | 303,193 | 376,807 | |||||||
|
|
31 | (continued) |
Ohio National Fund, Inc. | ON Foreign Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
LUXEMBOURG – 0.4% | ||||||||||||
SES SA (Communication Services) | (a | ) | 11,127 | $ | 213,039 | |||||||
|
| |||||||||||
Total Common Stocks (Cost $62,266,907) | $ | 53,340,805 | ||||||||||
|
| |||||||||||
Money Market Funds – 3.1% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (c | ) | 1,695,765 | $ | 1,695,595 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $1,695,711) | $ | 1,695,595 | ||||||||||
|
| |||||||||||
Total Investments – 99.9% (Cost $63,962,618) | (d | ) | $ | 55,036,400 | ||||||||
Other Assets in Excess of Liabilities – 0.1% | 50,227 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 55,086,627 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: | American Depositary Receipts |
NVDR: | Non-Voting Depository Receipts |
Footnotes:
(a) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $46,726,638 or 84.8% of the Portfolio’s net assets. |
(b) | Non-income producing security. |
(c) | Rate represents theseven-day yield at December 31, 2018. |
(d) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
32
Ohio National Fund, Inc. | ON Janus Henderson Forty Portfolio (Unaudited) |
Objective/Strategy |
The ON Janus Henderson Forty Portfolio (formerly the Aggressive Growth Portfolio) seeks long-term capital growth by investing primarily in domestic and foreign equity securities selected for growth potential.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | 5.22% | |||
Five years | 10.90% | |||
Ten years | 14.94% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.96% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Janus Henderson Forty Portfolio returned 5.22% versus-1.51% for its benchmark, the Russell 1000 Growth Index.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Nearly all of our relative outperformance was due to security selection. Specifically, strong stock selection in the Information Technology sector was a large driver of relative outperformance. Stock selection in the Materials and Consumer Discretionary sectors also aided relative results. Due to the concentrated nature of our investment portfolio, our sector holdings are significantly different from the benchmark. Within the Information Technology and Consumer Discretionary sectors, we held stocks that strung together several strong quarters of earnings growth, which helped drive those stocks upward.(1)
Sector allocation decisions also helped relative performance, specifically underweights to Industrials and Energy. We have maintained an underweight to Energy due to a lack of competitively advantaged growth companies within the sector, and believe the performance of most companies in the sector is tied largely to commodity prices. (1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The Trade Desk, Inc. Class A was the largest relative contributor. The stock of the programmatic advertising specialist was up after the company reported earnings that handily beat market expectations in the second and third quarters.(1)
salesforce.com, Inc. was also a large relative contributor. Strong revenue growth and continued appreciation for its business model have driven the stock higher.(1)
Mastercard, Inc. Class A was another top contributor. The company strung together several quarters of strong revenue and earnings growth.(1)
Apple, Inc. was the Portfolio’s largest detractor due to the Portfolio’s underweight relative to the benchmark. We are less optimistic about its long-term topline growth potential, which is increasingly tied to iPhone replacement cycles.(1)
NVIDIA Corp. was another relative detractor. The stock declined after the company reported earnings below consensus expectations. We continue to be impressed with the Company’s long-term outlook, however.(1)
Insmed, Inc. was the third-largest relative detractor. We like the potential for its lead therapy, amikacin liposome inhalation suspension (“ALIS”), an inhaled liposomal formulation of amikacin. The drug treats nontuberculous mycobacterial (NTM) infection, a lung disease that affects more than 200,000 people worldwide, causing symptoms such as chronic cough, chest pain and fatigue.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.No derivatives were used in the Portfolio. The Portfolio participated in two IPOs during the year, Adyen N.V. and PagSeguro Digital Ltd. In total, those stocks detracted 14 basis points from performance.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Russell 1000 Growth Index is a market-capitalization weighted index of those firms in the Russell 1000 Index with higherprice-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of thelarge-cap segment of the U.S. equity universe. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
33 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Forty Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 96.7 | |||
Money Market Funds | ||||
Less Net Liabilities | 3.3 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Alphabet, Inc. Class C | 7.2 | ||||
2. | Microsoft Corp. | 6.4 | ||||
3. | Mastercard, Inc. Class A | 5.7 | ||||
4. | Amazon.com, Inc. | 5.3 | ||||
5. | salesforce.com, Inc. | 4.1 | ||||
6. | Intercontinental Exchange, Inc. | 3.6 | ||||
7. | American Tower Corp. | 3.3 | ||||
8. | TD Ameritrade Holding Corp. | 3.3 | ||||
9. | Boeing Co. / The | 3.2 | ||||
10. | Boston Scientific Corp. | 3.2 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Information Technology | 32.1 | |||
Health Care | 18.2 | |||
Financials | 11.2 | |||
Consumer Discretionary | 9.4 | |||
Communication Services | 8.7 | |||
Industrials | 8.3 | |||
Materials | 5.5 | |||
Real Estate | 3.3 | |||
|
| |||
96.7 | ||||
|
|
34
Ohio National Fund, Inc. | ON Janus Henderson Forty Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 96.7% | Shares | Value | ||||||||||
| ||||||||||||
COMMUNICATION SERVICES – 8.7% | ||||||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 10,406 | $ | 10,776,558 | |||||||
Live Nation Entertainment, Inc. (Entertainment) | (a | ) | 45,182 | 2,225,213 | ||||||||
|
| |||||||||||
13,001,771 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 9.4% | ||||||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | (a | ) | 5,291 | 7,946,923 | ||||||||
Home Depot, Inc. / The (Specialty Retail) | 20,034 | 3,442,242 | ||||||||||
NIKE, Inc. Class B (Textiles, Apparel & Luxury Goods) | 36,017 | 2,670,300 | ||||||||||
|
| |||||||||||
14,059,465 | ||||||||||||
|
| |||||||||||
FINANCIALS – 11.2% | ||||||||||||
Intercontinental Exchange, Inc. (Capital Markets) | 70,891 | 5,340,219 | ||||||||||
Markel Corp. (Insurance) | (a | ) | 3,716 | 3,857,394 | ||||||||
SVB Financial Group (Banks) | (a | ) | 13,692 | 2,600,385 | ||||||||
TD Ameritrade Holding Corp. (Capital Markets) | 99,267 | 4,860,112 | ||||||||||
|
| |||||||||||
16,658,110 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 18.2% | ||||||||||||
Allergan PLC (Pharmaceuticals) | 24,596 | 3,287,501 | ||||||||||
BeiGene Ltd. – ADR (Biotechnology) | (a | ) | 4,293 | 602,136 | ||||||||
Boston Scientific Corp. (Health Care Equip. & Supplies) | (a | ) | 135,097 | 4,774,328 | ||||||||
Cooper Cos., Inc. / The (Health Care Equip. & Supplies) | 14,599 | 3,715,446 | ||||||||||
Edwards Lifesciences Corp. (Health Care Equip. & Supplies) | (a | ) | 16,153 | 2,474,155 | ||||||||
Humana, Inc. (Health Care Providers & Svs.) | 12,544 | 3,593,605 | ||||||||||
ICU Medical, Inc. (Health Care Equip. & Supplies) | (a | ) | 12,038 | 2,764,286 | ||||||||
Insmed, Inc. (Biotechnology) | (a | ) | 99,034 | 1,299,326 | ||||||||
Intuitive Surgical, Inc. (Health Care Equip. & Supplies) | (a | ) | 8,069 | 3,864,405 | ||||||||
Neurocrine Biosciences, Inc. (Biotechnology) | (a | ) | 11,811 | 843,424 | ||||||||
|
| |||||||||||
27,218,612 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 8.3% | ||||||||||||
Boeing Co. / The (Aerospace & Defense) | 15,064 | 4,858,140 | ||||||||||
CoStar Group, Inc. (Professional Svs.) | (a | ) | 4,451 | 1,501,500 | ||||||||
Harris Corp. (Aerospace & Defense) | 29,084 | 3,916,161 | ||||||||||
Rexnord Corp. (Machinery) | (a | ) | 93,321 | 2,141,717 | ||||||||
|
| |||||||||||
12,417,518 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 32.1% | ||||||||||||
Adobe Systems, Inc. (Software) | (a | ) | 10,412 | 2,355,611 | ||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 13,628 | 2,149,681 | ||||||||||
ASML Holding N.V. (Semiconductors & Equip.) | 21,130 | 3,288,251 | ||||||||||
Atlassian Corp. PLC Class A (Software) | (a | ) | 15,404 | 1,370,648 | ||||||||
Mastercard, Inc. Class A (IT Svs.) | 45,080 | 8,504,342 | ||||||||||
Microsoft Corp. (Software) | 94,076 | 9,555,299 | ||||||||||
NVIDIA Corp. (Semiconductors & Equip.) | 17,759 | 2,370,827 | ||||||||||
Pagseguro Digital Ltd. Class A (IT Svs.) | (a | ) | 44,586 | 835,096 | ||||||||
salesforce.com, Inc. (Software) | (a | ) | 44,830 | 6,140,365 | ||||||||
StoneCo Ltd. Class A (IT Svs.) | (a | ) | 35,303 | 650,987 | ||||||||
Texas Instruments, Inc. (Semiconductors & Equip.) | 44,072 | 4,164,804 | ||||||||||
Trade Desk, Inc. / The Class A (Software) | (a | ) | 11,457 | 1,329,699 | ||||||||
Ultimate Software Group, Inc. / The (Software) | (a | ) | 15,127 | 3,704,148 | ||||||||
WEX, Inc. (IT Svs.) | (a | ) | 10,594 | 1,483,796 | ||||||||
|
| |||||||||||
47,903,554 | ||||||||||||
|
| |||||||||||
MATERIALS – 5.5% | ||||||||||||
Ball Corp. (Containers & Packaging) | 99,572 | 4,578,321 | ||||||||||
Sherwin-Williams Co. / The (Chemicals) | 9,120 | 3,588,355 | ||||||||||
|
| |||||||||||
8,166,676 | ||||||||||||
|
| |||||||||||
REAL ESTATE – 3.3% | ||||||||||||
American Tower Corp. (Equity REIT) | 31,316 | 4,953,878 | ||||||||||
|
| |||||||||||
Total Common Stocks (Cost $147,145,545) | $ | 144,379,584 | ||||||||||
|
| |||||||||||
Money Market Funds – 4.2% | Shares | Value | ||||||||||
| ||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 6,239,813 | $ | 6,239,189 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $6,239,547) | $ | 6,239,189 | ||||||||||
|
| |||||||||||
Total Investments – 100.9% (Cost $153,385,092) | (c | ) | $ | 150,618,773 | ||||||||
Liabilities in Excess of Other Assets – (0.9)% | (1,281,490 | ) | ||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 149,337,283 | ||||||||||
|
|
35 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Forty Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Rate represents theseven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
36
Ohio National Fund, Inc. | ON Janus Henderson Venture Portfolio (Unaudited) |
Objective/Strategy |
The ON Janus Henderson Venture Portfolio (formerly the Small Cap Growth Portfolio) seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in stocks of small capitalization companies.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -6.37 | % | ||
Five years | 6.40 | % | ||
Ten years | 16.76 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.85% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Janus Henderson Venture Portfolio returned-6.37% versus-9.31% for its benchmark, the Russell 2000 Growth Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.In the second and third quarter, we were concerned about excessive valuations for many stocks of biotechnology, consumer internet andsoftware-asa-service companies that seemed to be driving the market. While we own some of these companies, we were underweight these stocks due to valuation concerns. That hurt relative performance in the second and third quarter, but we also benefited in the fourth quarter when this theme reversed sharply.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Both security selection and sector allocation decisions contributed meaningfully to relative performance. Stock selection was particularly strong in the Industrials, Energy and Financials sectors. In terms of sector weightings, the Portfolio’s overweight to the Information Technology sector was a large boost to relative results. Information Technology is the Portfolio’s largest overweight, driven in large part by our allocation to application software companies. This overweight was a material benefit to relative performance, as the Information Technology
sector was one of the few positive returning sectors for the year. Business models within the application software industry tend to have better visibility and sustainability to their revenue streams.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The Trade Desk, Inc. Class A was the largest relative contributor. The stock of the programmatic advertising specialist was up after the company reported earnings that handily beat market expectations in the second and third quarters.(1)
Bioverativ, Inc. was another top contributor. The stock soared on news that French Health Care company Sanofi agreed to buy Bioverativ, Inc. for more than $11 billion, a significant premium to the firm’s market value at the time.(1)
HEICO Corp. Class A was the third-largest relative contributor. Strong earnings momentum helped boost the stock of the aerospace parts supplier in recent months. A fewbolt-on acquisitions made by the company have also been viewed favorably and helped drive the stock upward.(1)
Belden, Inc. was the largest relative detractor. Belden’s stock dipped after an announcement that the Securities and Exchange Commission (“SEC”) was investigating the company over how it recognized revenue in one of its business units. The company had already announced the accounting issue, and we believe the stock price reaction to the news about the SEC investigation was overdone.(1)
Visteon Corp. was another relative detractor. The company makes automotive electronics, including infotainment systems and cockpit displays for automobiles. Concerns about the automobile cycle weighed on the stock, but we continue to like the company’s long-term outlook, as it continues to increase content and gain market share.(1)
Puma Biotechnology, Inc. detracted from relative performance. The stock declined after the company announced it was unlikely to get approval from the European Medicines Agency (“EMA”) for its lead drug, Nerlynx. The stock continued to trend down as the U.S. launch has ramped up slower than expected. We still like the long-term growth potential of Nerlynx, a breast cancer therapy approved by the U.S. Food and Drug Administration (“FDA”) in 2017, and subsequently approved in Europe inmid-2018 after the EMA decision was reversed. We don’t believe the stock’s current valuation reflects the upside in the U.S market, let alone in Europe.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.No derivatives were used in the Portfolio. The Portfolio participated in several IPOs, which contributed 20 bps to performance on a net basis.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
37 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Venture Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Russell 2000 Growth Index measures the performance of thesmall-cap growth segment of the U.S. equity universe. It includes the Russell 2000 Index companies with higherprice-to-value ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable U.S. equity markets. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 97.6 | |||
Master Limited Partnerships(4) | 2.1 | |||
Money Market Funds and Other Net Assets | 0.3 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | HEICO Corp. Class A | 2.2 | ||||
2. | Nice Ltd. – ADR | 2.2 | ||||
3. | SS&C Technologies Holdings, Inc. | 2.1 | ||||
4. | STERIS PLC | 1.9 | ||||
5. | LPL Financial Holdings, Inc. | 1.9 | ||||
6. | Euronet Worldwide, Inc. | 1.9 | ||||
7. | Catalent, Inc. | 1.8 | ||||
8. | ServiceMaster Global Holdings, Inc. | 1.7 | ||||
9. | j2 Global, Inc. | 1.5 | ||||
10. | Cedar Fair LP | 1.5 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Master Limited Partnerships): |
% of Net Assets | ||||
Information Technology | 30.8 | |||
Health Care | 22.0 | |||
Industrials | 17.9 | |||
Consumer Discretionary | 11.2 | |||
Financials | 7.5 | |||
Materials | 4.2 | |||
Real Estate | 2.0 | |||
Energy | 1.8 | |||
Consumer Staples | 1.6 | |||
Communication Services | 0.7 | |||
|
| |||
99.7 | ||||
|
|
38
Ohio National Fund, Inc. | ON Janus Henderson Venture Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 97.6% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 0.7% | ||||||||||||
Manchester United PLC Class A (Entertainment) | 71,922 | $ | 1,365,079 | |||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 9.7% | ||||||||||||
Carter’s, Inc. (Textiles, Apparel & Luxury Goods) | 13,247 | 1,081,220 | ||||||||||
Dunkin’ Brands Group, Inc. (Hotels, Restaurants & Leisure) | 30,936 | 1,983,616 | ||||||||||
Farfetch Ltd. Class A (Internet & Direct Marketing Retail) | (a | ) | 50,543 | 895,117 | ||||||||
frontdoor, Inc. (Diversified Consumer Svs.) | (a | ) | 48,744 | 1,297,078 | ||||||||
K12, Inc. (Diversified Consumer Svs.) | (a | ) | 78,123 | 1,936,669 | ||||||||
Lovesac Co. / The (Household Durables) | (a | ) | 75,020 | 1,720,959 | ||||||||
MakeMyTrip Ltd. (Internet & Direct Marketing Retail) | (a | ) | 34,885 | 848,752 | ||||||||
Monarch Casino & Resort, Inc. (Hotels, Restaurants & Leisure) | (a | ) | 28,043 | 1,069,560 | ||||||||
Sally Beauty Holdings, Inc. (Specialty Retail) | (a | ) | 46,895 | 799,560 | ||||||||
ServiceMaster Global Holdings, Inc. (Diversified Consumer Svs.) | (a | ) | 97,489 | 3,581,746 | ||||||||
Thor Industries, Inc. (Automobiles) | 17,200 | 894,400 | ||||||||||
Visteon Corp. (Auto Components) | (a | ) | 22,423 | 1,351,658 | ||||||||
Waitr Holdings, Inc. (Internet & Direct Marketing Retail) | (a | ) | 127,620 | 1,422,963 | ||||||||
Williams-Sonoma, Inc. (Specialty Retail) | 25,834 | 1,303,325 | ||||||||||
|
| |||||||||||
20,186,623 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 1.6% | ||||||||||||
Casey’s General Stores, Inc. (Food & Staples Retailing) | 8,410 | 1,077,657 | ||||||||||
Hain Celestial Group, Inc. / The (Food Products) | (a | ) | 35,100 | 556,686 | ||||||||
Ontex Group N.V. (Personal Products) | (b | ) | 77,507 | 1,589,235 | ||||||||
|
| |||||||||||
3,223,578 | ||||||||||||
|
| |||||||||||
ENERGY – 1.2% | ||||||||||||
Magnolia Oil & Gas Corp. (Oil, Gas & Consumable Fuels) | (a | ) | 121,251 | 1,359,224 | ||||||||
Solaris Oilfield Infrastructure, Inc. Class A (Energy Equip. & Svs.) | 96,711 | 1,169,236 | ||||||||||
|
| |||||||||||
2,528,460 | ||||||||||||
|
| |||||||||||
FINANCIALS – 7.5% | ||||||||||||
GTY Technology Holdings, Inc. Class A (Capital Markets) | (a | ) | 106,257 | 1,057,257 | ||||||||
Kearny Financial Corp. (Thrifts & Mortgage Finance) | 90,618 | 1,161,723 | ||||||||||
Kingstone Cos., Inc. (Insurance) | 94,664 | 1,674,606 | ||||||||||
LendingTree, Inc. (Thrifts & Mortgage Finance) | (a | ) | 5,433 | 1,192,924 | ||||||||
LPL Financial Holdings, Inc. (Capital Markets) | 63,615 | 3,885,604 | ||||||||||
MSCI, Inc. (Capital Markets) | 12,008 | 1,770,340 | ||||||||||
RLI Corp. (Insurance) | 35,146 | 2,424,723 | ||||||||||
SLM Corp. (Consumer Finance) | (a | ) | 147,036 | 1,221,869 | ||||||||
UMB Financial Corp. (Banks) | 20,854 | 1,271,468 | ||||||||||
|
| |||||||||||
15,660,514 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 22.0% | ||||||||||||
Acceleron Pharma, Inc. (Biotechnology) | (a | ) | 14,845 | 646,500 | ||||||||
AnaptysBio, Inc. (Biotechnology) | (a | ) | 17,113 | 1,091,638 | ||||||||
AngioDynamics, Inc. (Health Care Equip. & Supplies) | (a | ) | 82,346 | 1,657,625 | ||||||||
athenahealth, Inc. (Health Care Technology) | (a | ) | 8,471 | 1,117,579 | ||||||||
BeiGene Ltd. – ADR (Biotechnology) | (a | ) | 6,914 | 969,758 | ||||||||
BioCryst Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 107,888 | 870,656 | ||||||||
Biohaven Pharmaceutical Holding Co. Ltd. (Biotechnology) | (a | ) | 35,770 | 1,322,775 | ||||||||
Bio-Techne Corp. (Life Sciences Tools & Svs.) | 13,851 | 2,004,517 | ||||||||||
Catalent, Inc. (Pharmaceuticals) | (a | ) | 118,596 | 3,697,823 | ||||||||
Codexis, Inc. (Life Sciences Tools & Svs.) | (a | ) | 66,192 | 1,105,406 |
Common Stocks (Continued) | Shares | Value | ||||||||||
HEALTH CARE (continued) | ||||||||||||
Deciphera Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 18,523 | $ | 388,798 | |||||||
Diplomat Pharmacy, Inc. (Health Care Providers & Svs.) | (a | ) | 81,661 | 1,099,157 | ||||||||
Eagle Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 34,037 | 1,371,351 | ||||||||
Enanta Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 10,822 | 766,522 | ||||||||
FibroGen, Inc. (Biotechnology) | (a | ) | 26,874 | 1,243,729 | ||||||||
Globus Medical, Inc. Class A (Health Care Equip. & Supplies) | (a | ) | 20,634 | 893,040 | ||||||||
GW Pharmaceuticals PLC – ADR (Pharmaceuticals) | (a | ) | 10,535 | 1,026,004 | ||||||||
HealthEquity, Inc. (Health Care Providers & Svs.) | (a | ) | 16,825 | 1,003,611 | ||||||||
Heron Therapeutics, Inc. (Biotechnology) | (a | ) | 58,562 | 1,519,098 | ||||||||
Heska Corp. (Health Care Equip. & Supplies) | (a | ) | 11,601 | 998,846 | ||||||||
ICU Medical, Inc. (Health Care Equip. & Supplies) | (a | ) | 9,034 | 2,074,477 | ||||||||
Immunomedics, Inc. (Biotechnology) | (a | ) | 40,234 | 574,139 | ||||||||
Insmed, Inc. (Biotechnology) | (a | ) | 78,552 | 1,030,602 | ||||||||
Knight Therapeutics, Inc. (Biotechnology) | (a | ) | 192,555 | 1,084,638 | ||||||||
Ligand Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 10,103 | 1,370,977 | ||||||||
Mirati Therapeutics, Inc. (Biotechnology) | (a | ) | 11,177 | 474,128 | ||||||||
Myovant Sciences Ltd. (Biotechnology) | (a | ) | 32,501 | 533,341 | ||||||||
NeoGenomics, Inc. (Life Sciences Tools & Svs.) | (a | ) | 162,798 | 2,052,883 | ||||||||
Neurocrine Biosciences, Inc. (Biotechnology) | (a | ) | 17,797 | 1,270,884 | ||||||||
Prestige Consumer Healthcare, Inc. (Pharmaceuticals) | (a | ) | 56,527 | 1,745,554 | ||||||||
Puma Biotechnology, Inc. (Biotechnology) | (a | ) | 27,804 | 565,811 | ||||||||
RA Medical Systems, Inc. (Health Care Equip. & Supplies) | (a | ) | 71,557 | 568,878 | ||||||||
Rhythm Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 37,152 | 998,646 | ||||||||
Senseonics Holdings, Inc. (Health Care Equip. & Supplies) | (a | ) | 264,736 | 685,666 | ||||||||
STERIS PLC (Health Care Equip. & Supplies) | 37,431 | 3,999,502 | ||||||||||
Surmodics, Inc. (Health Care Equip. & Supplies) | (a | ) | 13,283 | 627,755 | ||||||||
Trinity Biotech PLC – ADR (Health Care Equip. & Supplies) | (a | ) | 91,807 | 210,238 | ||||||||
WaVe Life Sciences Ltd. (Pharmaceuticals) | (a | ) | 21,586 | 907,476 | ||||||||
|
| |||||||||||
45,570,028 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 17.9% | ||||||||||||
AMERCO (Road & Rail) | 5,621 | 1,844,306 | ||||||||||
Brady Corp. Class A (Commercial Svs. & Supplies) | 42,258 | 1,836,533 | ||||||||||
Cimpress N.V. (Commercial Svs. & Supplies) | (a | ) | 15,876 | 1,641,896 | ||||||||
CoStar Group, Inc. (Professional Svs.) | (a | ) | 3,717 | 1,253,893 | ||||||||
CSW Industrials, Inc. (Building Products) | (a | ) | 57,067 | 2,759,189 | ||||||||
EnerSys (Electrical Equip.) | 17,254 | 1,339,083 | ||||||||||
Gates Industrial Corp. PLC (Machinery) | (a | ) | 182,670 | 2,418,551 | ||||||||
HEICO Corp. Class A (Aerospace & Defense) | 74,086 | 4,667,419 | ||||||||||
ITT, Inc. (Machinery) | 45,440 | 2,193,389 | ||||||||||
Kennametal, Inc. (Machinery) | 46,793 | 1,557,271 | ||||||||||
Kornit Digital Ltd. (Machinery) | (a | ) | 86,516 | 1,619,580 | ||||||||
Nordson Corp. (Machinery) | 17,224 | 2,055,684 | ||||||||||
Old Dominion Freight Line, Inc. (Road & Rail) | 10,774 | 1,330,481 | ||||||||||
Proto Labs, Inc. (Machinery) | (a | ) | 10,712 | 1,208,206 | ||||||||
Rexnord Corp. (Machinery) | (a | ) | 114,383 | 2,625,090 | ||||||||
Standex International Corp. (Machinery) | 36,435 | 2,447,703 | ||||||||||
TrueBlue, Inc. (Professional Svs.) | (a | ) | 55,311 | 1,230,670 | ||||||||
WABCO Holdings, Inc. (Machinery) | (a | ) | 18,223 | 1,956,057 | ||||||||
Wabtec Corp. (Machinery) | 17,922 | 1,259,021 | ||||||||||
|
| |||||||||||
37,244,022 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 30.8% | ||||||||||||
Altair Engineering, Inc. Class A (Software) | (a | ) | 34,417 | 949,221 | ||||||||
Arlo Technologies, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 98,593 | 983,958 |
39 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Venture Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INFORMATION TECHNOLOGY (continued) |
| |||||||||||
Belden, Inc. (Electronic Equip., Instr. & Comp.) | 55,295 | $ | 2,309,672 | |||||||||
Blackbaud, Inc. (Software) | 41,357 | 2,601,355 | ||||||||||
Broadridge Financial Solutions, Inc. (IT Svs.) | 29,243 | 2,814,639 | ||||||||||
Cadence Design Systems, Inc. (Software) | (a | ) | 62,435 | 2,714,674 | ||||||||
ChannelAdvisor Corp. (Software) | (a | ) | 118,463 | 1,344,555 | ||||||||
Cision Ltd. (Software) | (a | ) | 161,278 | 1,886,953 | ||||||||
CTS Corp. (Electronic Equip., Instr. & Comp.) | 39,952 | 1,034,357 | ||||||||||
Descartes Systems Group, Inc. / The (Software) | (a | ) | 76,285 | 2,013,294 | ||||||||
Envestnet, Inc. (Software) | (a | ) | 44,492 | 2,188,562 | ||||||||
Euronet Worldwide, Inc. (IT Svs.) | (a | ) | 37,566 | 3,846,007 | ||||||||
Everbridge, Inc. (Software) | (a | ) | 22,381 | 1,270,346 | ||||||||
Guidewire Software, Inc. (Software) | (a | ) | 16,997 | 1,363,669 | ||||||||
Instructure, Inc. (Software) | (a | ) | 38,189 | 1,432,469 | ||||||||
j2 Global, Inc. (Software) | 44,317 | 3,074,714 | ||||||||||
LivePerson, Inc. (Software) | (a | ) | 63,427 | 1,196,233 | ||||||||
National Instruments Corp. (Electronic Equip., Instr. & Comp.) | 24,446 | 1,109,360 | ||||||||||
Nice Ltd. – ADR (Software) | (a | ) | 41,300 | 4,469,073 | ||||||||
Novanta, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 21,825 | 1,374,975 | ||||||||
ON Semiconductor Corp. (Semiconductors & Equip.) | (a | ) | 162,063 | 2,675,660 | ||||||||
OSI Systems, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 24,484 | 1,794,677 | ||||||||
Paylocity Holding Corp. (Software) | (a | ) | 28,680 | 1,726,823 | ||||||||
RealPage, Inc. (Software) | (a | ) | 37,496 | 1,806,932 | ||||||||
Rogers Corp. (Electronic Equip., Instr. & Comp.) | (a | ) | 17,285 | 1,712,252 | ||||||||
SailPoint Technologies Holding, Inc. (Software) | (a | ) | 58,557 | 1,375,504 | ||||||||
SS&C Technologies Holdings, Inc. (Software) | 98,661 | 4,450,598 | ||||||||||
Trade Desk, Inc. / The Class A (Software) | (a | ) | 13,219 | 1,534,197 | ||||||||
Tyler Technologies, Inc. (Software) | (a | ) | 8,250 | 1,533,015 | ||||||||
WEX, Inc. (IT Svs.) | (a | ) | 16,605 | 2,325,696 | ||||||||
WNS Holdings Ltd. – ADR (IT Svs.) | (a | ) | 35,840 | 1,478,758 | ||||||||
Yext, Inc. (Software) | (a | ) | 97,592 | 1,449,241 | ||||||||
|
| |||||||||||
63,841,439 | ||||||||||||
|
| |||||||||||
MATERIALS – 4.2% | ||||||||||||
H.B. Fuller Co. (Chemicals) | 41,347 | 1,764,276 | ||||||||||
Neenah, Inc. (Paper & Forest Products) | 21,779 | 1,283,219 | ||||||||||
Sensient Technologies Corp. (Chemicals) | 53,898 | 3,010,203 | ||||||||||
Valvoline, Inc. (Chemicals) | 139,193 | 2,693,385 | ||||||||||
|
| |||||||||||
8,751,083 | ||||||||||||
|
| |||||||||||
REAL ESTATE – 2.0% | ||||||||||||
Condor Hospitality Trust, Inc. (Equity REIT) | 90,640 | 624,510 | ||||||||||
Easterly Government Properties, Inc. (Equity REIT) | 68,754 | 1,078,063 | ||||||||||
FirstService Corp. (Real Estate Mgmt. & Development) | 18,001 | 1,232,708 | ||||||||||
Redfin Corp. (Real Estate Mgmt. & Development) | (a | ) | 83,746 | 1,205,942 | ||||||||
|
| |||||||||||
4,141,223 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $181,749,360) | $ | 202,512,049 | ||||||||||
|
| |||||||||||
Master Limited Partnerships – 2.1% | Shares | Value | ||||||||||
CONSUMER DISCRETIONARY – 1.5% |
| |||||||||||
Cedar Fair LP (Hotels, Restaurants & Leisure) | 64,604 | $ | 3,055,769 | |||||||||
|
| |||||||||||
ENERGY – 0.6% | ||||||||||||
DCP Midstream LP (Oil, Gas & Consumable Fuels) | 49,657 | 1,315,414 | ||||||||||
|
| |||||||||||
Total Master Limited Partnerships (Cost $4,432,235) | $ | 4,371,183 | ||||||||||
|
|
Money Market Funds – 0.1% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (c | ) | 211,581 | $ | 211,560 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $211,560) | $ | 211,560 | ||||||||||
|
| |||||||||||
Total Investments – 99.8% (Cost $186,393,155) | (d | ) | $ | 207,094,792 | ||||||||
Other Assets in Excess of Liabilities – 0.2% | 352,635 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 207,447,427 | ||||||||||
|
|
40 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Venture Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $1,589,235 or 0.8% of the Portfolio’s net assets. |
Other Portfolio securities are not subjected to fair value procedures because they are traded on domestic or foreign exchanges that have close times that are consistent with the U.S. market close, normally 4:00 pm Eastern Time.
(c) | Rate represents theseven-day yield at December 31, 2018. |
(d) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
41
Ohio National Fund, Inc. | ON Janus Henderson Enterprise Portfolio (Unaudited) |
Objective/Strategy |
The ON Janus Henderson Enterprise Portfolio (formerly the Mid Cap Opportunity Portfolio) seeks long-term total return by investing, under normal circumstances, at least 80% of its assets in equity securities ofmid-cap companies, primarily those that are strategically positioned for long-term growth.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -3.21% | |||
Five years | 5.76% | |||
Ten years | 13.05% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.98% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Janus Henderson Enterprise Portfolio returned-3.21% versus-4.75% for its benchmark, the Russell Midcap Growth Index.
Effective May 1, 2018, Janus Capital Management LLC (“Janus”) replaced the Portfolio’s previoussub-adviser, Goldman Sachs Asset Management, L.P. (“Goldman Sachs”). In conjunction with the change insub-adviser, the name of the Portfolio was changed from Mid Cap Opportunity Portfolio to ON Janus Henderson Enterprise Portfolio. The Portfolio’s benchmark was unchanged.
For the period from January 1, 2018 to April 30, 2018 (the “first four-month period”), the Portfolio was known as the Mid Cap Opportunity Portfolio, and wassub-advised by Goldman Sachs. During the first four-month period, the Portfolio returned 1.66% versus 1.21% for the Russell Midcap Growth Index.
For the period from May 1, 2018 to December 31, 2018 (the “latter eight-month period”), the Portfolio wassub-advised by Janus. During this period, the Portfolio returned-4.79% versus-5.89% for the Russell Midcap Growth Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A. Goldman Sachs:Stock selection was the primary driver of the Portfolio’s outperformance during the first four-month period. Strong stock selection in the Information Technology sector drove much of the outperformance.
A. Janus:In the second and third quarter, we were concerned about excessive valuations for many growth stocks; in particular, those within the biotechnology, consumer internet, and software spaces. While we own some of these companies, and appreciate their business models and growth opportunities, we were underweight these stocks due to valuation concerns. That hurt relative performance in the second and third quarter, but we benefited in the fourth quarter when stocks with the highest valuations sold off sharply.(1)
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For stock selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A. Goldman Sachs:During the first four-month period, stock selection within the Information Technology and Financials sectors contributed most to relative returns, while stock selection within the Consumer Discretionary and Materials sectors detracted most from relative returns.
A. Janus:The strategy’s relative outperformance during the latter eight-month period was due to stock selection. Stock selection was particularly strong in the Health Care, Real Estate and Financials sectors, which contributed positively. Relative to the benchmark, the Portfolio’s overweight to the Financials sector detracted from relative results, along with an underweight to Consumer Staples. The Portfolio was underweight the Materials sector, which contributed positively.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A. Goldman Sachs:Intuit, Inc. was a top contributor to relative returns for the first four-month period. The company released positive numbers following the 2017 tax filing season in which it reported further market share gains while also raising its full-year consumer tax guidance. Intuit’s has continued to gain market share in theDo-It-Yourself (“DIY”) tax space and the company’s deep product line and growing customer base have been viewed as encouraging signs of further growth.
GoDaddy, Inc. Class A (“GoDaddy”), a web hosting services company, was also a top contributor for the first four-month period. The company reported strong fourth quarter results and gave impressive guidance for both the first quarter and full year of 2018. Continued customer engagement and expansion of its product Portfolio drove organic revenue growth that exceeded investor expectations. GoDaddy is a high-quality company that has consistently executed and been able to deliver durable earnings growth at an attractive valuation.
Valvoline, Inc. (“Valvoline”) was a top detractor from relative returns for the first four-month period. In early February, the company announced mixed quarterly results. Same store sales were strong with positive store traffic and good sales growth. However, higher commodity prices and performance in the core North American and International segments dragged on earnings. Despite the macro headwinds, the company has multiple sales growth drivers and is gaining market share among mechanics.
Hubbell, Inc. (“Hubbell”), a company that designs, manufactures and sells electrical and electronic products, was also a top detractor from relative returns for the four-month period. The stock came under pressure in April following its earnings announcement, in which it reportedin-line earnings but slightly weaker than expected margins. The results were driven by challenging pricing in select markets and cost pressures.
42 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Enterprise Portfolio (Unaudited) (Continued) |
A. Janus:Atlassian Corp. PLC Class A (“Atlassian”) was the largest relative contributor during the latter eight-month period. The company strung together consecutive quarters of strong revenue growth, validating the value of the business and driving the stock higher. We believe Atlassian’s software tools play a valuable role allowing business teams to collaborate with each other more effectively.(1)
Xilinx, Inc. (“Xilinx”) was another top contributor. In what was generally a tough environment for companies in the semiconductor supply chain, Xilinx beat earnings estimates and raised earnings guidance, which helped lift the stock in the fourth quarter.(1)
Boston Scientific Corp. was the third-largest contributor. The medical technology company reported strong earnings growth during the second quarter, which helped drive the stock. We remain encouraged by the initiatives that its management team is undertaking to boost the company’s product pipeline, expand operating margins and grow revenue.(1)
Flex Ltd. was the Portfolio’s largest relative detractor during the latter eight-month period. The supply chain solutions company had been working on a solution to near-source manufacturing for NIKE, Inc., but after delays on the project, both sides walked away from it. While this was a negative for the company, we continue to like the stock and believe the company provides great value to its customers.(1)
TD Ameritrade Holding Corp. was the second-largest detractor. Concerns about the economic and capital markets cycle weighed on the stock in the second half of 2018. Going forward, we believe that the retirement wave of baby boomers is a tailwind for companies such as TD Ameritrade, as financial assets will likely move from defined contribution plans to rollover IRAs.(1)
ON Semiconductor Corp. (“ON Semiconductor”) was another relative detractor. Concerns about the automobile cycle weighed on the stock. Fears about how tariffs might impact the semiconductor and technology hardware supply chains negatively affected ON Semiconductor.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A. Goldman Sachs:The Portfolio did not utilize derivatives during the first four-month period. The Portfolio participated in two IPOs during the first four-month period: Dropbox, Inc. and Hudson Ltd. Class A. The Portfolio’s position in Dropbox, Inc. contributed 5 basis points to relative performance during this period, while the Portfolio’s position in Hudson LTD detracted 4 basis points from relative performance during this period.
A. Janus:The Portfolio did not hold any derivatives or participate in any IPOs during the latter eight-month period.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Russell Midcap Growth Index is a subset of the Russell Midcap Index, which measures the performance of the 800 smallest companies in the Russell 1000 Index. The Russell Midcap Growth Index measures the performance of those stocks of the Russell Midcap Index with higherprice-to-book ratios and higher relative forecasted growth rates. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
43 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Enterprise Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 98.3 | |||
Money Market Funds | ||||
Less Net Liabilities | 1.7 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Nice Ltd. – ADR | 2.7 | ||||
2. | Sensata Technologies Holding PLC | 2.6 | ||||
3. | TD Ameritrade Holding Corp. | 2.5 | ||||
4. | Boston Scientific Corp. | 2.4 | ||||
5. | Microchip Technology, Inc. | 2.3 | ||||
6. | Crown Castle International Corp. | 2.3 | ||||
7. | Constellation Software, Inc. | 2.2 | ||||
8. | Aon PLC | 2.2 | ||||
9. | Lamar Advertising Co. Class A | 2.1 | ||||
10. | PerkinElmer, Inc. | 2.1 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Information Technology | 34.0 | |||
Industrials | 21.4 | |||
Health Care | 16.1 | |||
Financials | 11.2 | |||
Consumer Discretionary | 8.4 | |||
Real Estate | 4.4 | |||
Communication Services | 1.4 | |||
Materials | 1.3 | |||
Energy | 0.1 | |||
|
| |||
98.3 | ||||
|
|
44
Ohio National Fund, Inc. | ON Janus Henderson Enterprise Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 98.3% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 1.4% |
| |||||||||||
Liberty Media Corp. - Liberty Formula One Class C Class C (Entertainment) | (a | ) | 15,057 | $ | 462,250 | |||||||
Omnicom Group, Inc. (Media) | 13,556 | 992,841 | ||||||||||
|
| |||||||||||
1,455,091 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 8.4% |
| |||||||||||
Aramark (Hotels, Restaurants & Leisure) | 27,356 | 792,503 | ||||||||||
Carter’s, Inc. (Textiles, Apparel & Luxury Goods) | 6,867 | 560,485 | ||||||||||
Dunkin’ Brands Group, Inc. (Hotels, Restaurants & Leisure) | 22,750 | 1,458,730 | ||||||||||
frontdoor, Inc. (Diversified Consumer Svs.) | (a | ) | 14,414 | 383,557 | ||||||||
Gildan Activewear, Inc. (Textiles, Apparel & Luxury Goods) | 52,066 | 1,580,724 | ||||||||||
Lululemon Athletica, Inc. (Textiles, Apparel & Luxury Goods) | (a | ) | 3,763 | 457,618 | ||||||||
Norwegian Cruise Line Holdings Ltd. (Hotels, Restaurants & Leisure) | (a | ) | 22,380 | 948,688 | ||||||||
ServiceMaster Global Holdings, Inc. (Diversified Consumer Svs.) | (a | ) | 28,830 | 1,059,214 | ||||||||
Visteon Corp. (Auto Components) | (a | ) | 6,156 | 371,084 | ||||||||
Wayfair, Inc. Class A (Internet & Direct Marketing Retail) | (a | ) | 4,704 | 423,736 | ||||||||
Williams-Sonoma, Inc. (Specialty Retail) | 11,302 | 570,186 | ||||||||||
|
| |||||||||||
8,606,525 | ||||||||||||
|
| |||||||||||
ENERGY – 0.1% | ||||||||||||
World Fuel Services Corp. (Oil, Gas & Consumable Fuels) | 7,189 | 153,917 | ||||||||||
|
| |||||||||||
FINANCIALS – 11.2% | ||||||||||||
Aon PLC (Insurance) | 15,316 | 2,226,334 | ||||||||||
Intact Financial Corp. (Insurance) | 17,671 | 1,283,904 | ||||||||||
LPL Financial Holdings, Inc. (Capital Markets) | 33,999 | 2,076,659 | ||||||||||
MSCI, Inc. (Capital Markets) | 5,209 | 767,963 | ||||||||||
SVB Financial Group (Banks) | (a | ) | 3,038 | 576,977 | ||||||||
Synchrony Financial (Consumer Finance) | 23,553 | 552,553 | ||||||||||
TD Ameritrade Holding Corp. (Capital Markets) | 53,102 | 2,599,874 | ||||||||||
W.R. Berkley Corp. (Insurance) | 19,224 | 1,420,846 | ||||||||||
|
| |||||||||||
11,505,110 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 16.1% | ||||||||||||
ACADIA Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 17,146 | 277,251 | ||||||||
Alkermes PLC (Biotechnology) | (a | ) | 9,993 | 294,893 | ||||||||
athenahealth, Inc. (Health Care Technology) | (a | ) | 9,523 | 1,256,369 | ||||||||
Boston Scientific Corp. (Health Care Equip. & Supplies) | (a | ) | 70,288 | 2,483,978 | ||||||||
Catalent, Inc. (Pharmaceuticals) | (a | ) | 20,118 | 627,279 | ||||||||
Cooper Cos., Inc. / The (Health Care Equip. & Supplies) | 8,031 | 2,043,890 | ||||||||||
Elanco Animal Health, Inc. (Pharmaceuticals) | (a | ) | 4,939 | 155,727 | ||||||||
ICU Medical, Inc. (Health Care Equip. & Supplies) | (a | ) | 4,049 | 929,772 | ||||||||
IQVIA Holdings, Inc. (Life Sciences Tools & Svs.) | (a | ) | 14,081 | 1,635,790 | ||||||||
Neurocrine Biosciences, Inc. (Biotechnology) | (a | ) | 12,387 | 884,556 | ||||||||
PerkinElmer, Inc. (Life Sciences Tools & Svs.) | 27,267 | 2,141,823 | ||||||||||
Sarepta Therapeutics, Inc. (Biotechnology) | (a | ) | 3,001 | 327,499 | ||||||||
Teleflex, Inc. (Health Care Equip. & Supplies) | 3,603 | 931,303 | ||||||||||
Varian Medical Systems, Inc. (Health Care Equip. & Supplies) | (a | ) | 8,324 | 943,192 | ||||||||
Waters Corp. (Life Sciences Tools & Svs.) | (a | ) | 8,447 | 1,593,527 | ||||||||
|
| |||||||||||
16,526,849 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 21.4% | ||||||||||||
A.O. Smith Corp. (Building Products) | 19,235 | 821,334 | ||||||||||
AMETEK, Inc. (Electrical Equip.) | 5,524 | 373,975 | ||||||||||
Carlisle Cos., Inc. (Industrial Conglomerates) | 13,013 | 1,308,067 | ||||||||||
Cimpress N.V. (Commercial Svs. & Supplies) | (a | ) | 13,051 | 1,349,734 | ||||||||
CoStar Group, Inc. (Professional Svs.) | (a | ) | 5,102 | 1,721,109 | ||||||||
Edenred (Commercial Svs. & Supplies) | (b | ) | 29,208 | 1,075,700 | ||||||||
Ferguson PLC (Trading Companies & Distributors) | (b | ) | 10,425 | 666,139 | ||||||||
Harris Corp. (Aerospace & Defense) | 7,067 | 951,572 | ||||||||||
HEICO Corp. (Aerospace & Defense) | 10,463 | 810,673 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS (continued) | ||||||||||||
HEICO Corp. Class A (Aerospace & Defense) | 3,200 | $ | 201,600 | |||||||||
IHS Markit Ltd. (Professional Svs.) | (a | ) | 20,593 | 987,846 | ||||||||
Middleby Corp. / The (Machinery) | (a | ) | 7,070 | 726,301 | ||||||||
Old Dominion Freight Line, Inc. (Road & Rail) | 7,040 | 869,370 | ||||||||||
Rexnord Corp. (Machinery) | (a | ) | 54,415 | 1,248,824 | ||||||||
Ritchie Bros Auctioneers, Inc. (Commercial Svs. & Supplies) | 37,853 | 1,238,550 | ||||||||||
Ryanair Holdings PLC – ADR (Airlines) | (a | ) | 10,119 | 721,889 | ||||||||
Sensata Technologies Holding PLC (Electrical Equip.) | (a | ) | 59,193 | 2,654,214 | ||||||||
Teledyne Technologies, Inc. (Aerospace & Defense) | (a | ) | 8,425 | 1,744,565 | ||||||||
Verisk Analytics, Inc. (Professional Svs.) | (a | ) | 18,446 | 2,011,352 | ||||||||
Wabtec Corp. (Machinery) | 6,540 | 459,435 | ||||||||||
|
| |||||||||||
21,942,249 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 34.0% |
| |||||||||||
Amdocs Ltd. (IT Svs.) | 33,051 | 1,936,128 | ||||||||||
Atlassian Corp. PLC Class A (Software) | (a | ) | 18,874 | 1,679,409 | ||||||||
Belden, Inc. (Electronic Equip., Instr. & Comp.) | 13,762 | 574,839 | ||||||||||
Broadridge Financial Solutions, Inc. (IT Svs.) | 7,714 | 742,472 | ||||||||||
Constellation Software, Inc. (Software) | 3,525 | 2,256,341 | ||||||||||
Dolby Laboratories, Inc. Class A (Electronic Equip., Instr. & Comp.) | 10,386 | 642,270 | ||||||||||
Euronet Worldwide, Inc. (IT Svs.) | (a | ) | 4,640 | 475,043 | ||||||||
Fidelity National Information Services, Inc. (IT Svs.) | 14,892 | 1,527,175 | ||||||||||
Flex Ltd. (Electronic Equip., Instr. & Comp.) | (a | ) | 96,733 | 736,138 | ||||||||
Gartner, Inc. (IT Svs.) | (a | ) | 7,849 | 1,003,416 | ||||||||
Global Payments, Inc. (IT Svs.) | 19,083 | 1,968,030 | ||||||||||
GoDaddy, Inc. Class A (IT Svs.) | (a | ) | 12,644 | 829,699 | ||||||||
Intuit, Inc. (Software) | 3,400 | 669,290 | ||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 18,243 | 1,632,566 | ||||||||||
Lam Research Corp. (Semiconductors & Equip.) | 7,973 | 1,085,683 | ||||||||||
Microchip Technology, Inc. (Semiconductors & Equip.) | 33,188 | 2,386,881 | ||||||||||
National Instruments Corp. (Electronic Equip., Instr. & Comp.) | 43,557 | 1,976,617 | ||||||||||
Nice Ltd. – ADR (Software) | (a | ) | 25,010 | 2,706,332 | ||||||||
ON Semiconductor Corp. (Semiconductors & Equip.) | (a | ) | 97,261 | 1,605,779 | ||||||||
SS&C Technologies Holdings, Inc. (Software) | 45,608 | 2,057,377 | ||||||||||
TE Connectivity Ltd. (Electronic Equip., Instr. & Comp.) | 27,150 | 2,053,354 | ||||||||||
Ultimate Software Group, Inc. / The (Software) | (a | ) | 4,860 | 1,190,068 | ||||||||
WEX, Inc. (IT Svs.) | (a | ) | 14,059 | 1,969,104 | ||||||||
Xilinx, Inc. (Semiconductors & Equip.) | 13,602 | 1,158,482 | ||||||||||
|
| |||||||||||
34,862,493 | ||||||||||||
|
| |||||||||||
MATERIALS – 1.3% | ||||||||||||
Sealed Air Corp. (Containers & Packaging) | 37,497 | 1,306,395 | ||||||||||
|
| |||||||||||
REAL ESTATE – 4.4% | ||||||||||||
Crown Castle International Corp. (Equity REIT) | 21,874 | 2,376,173 | ||||||||||
Lamar Advertising Co. Class A (Equity REIT) | 31,567 | 2,183,805 | ||||||||||
|
| |||||||||||
4,559,978 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $109,800,011) | $ | 100,918,607 | ||||||||||
|
| |||||||||||
Money Market Funds – 1.8% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (c | ) | 1,824,215 | $ | 1,824,032 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $1,824,035) | $ | 1,824,032 | ||||||||||
|
| |||||||||||
Total Investments – 100.1% (Cost $111,624,046) | (d | ) | $ | 102,742,639 | ||||||||
Liabilities in Excess of Other Assets – (0.1)% | (151,577 | ) | ||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 102,591,062 | ||||||||||
|
|
45 | (continued) |
Ohio National Fund, Inc. | ON Janus Henderson Enterprise Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $1,741,839 or 1.7% of the Portfolio’s net assets. |
(c) | Rate represents theseven-day yield at December 31, 2018. |
(d) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
46
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Unaudited) |
Objective/Strategy |
The ON S&P 500® Index Portfolio (formerly the S&P 500® Index Portfolio) seeks total return approximating that of the Standard & Poor’s 500® Index (S&P 500® Index), including reinvestment of dividends, at a risk level consistent with that of the S&P 500® Index by investing, under normal circumstances, more than 80% of its assets in the securities included in the S&P 500® Index.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -4.78 | % | ||
Five years | 8.02 | % | ||
Ten years | 12.60 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.38% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON S&P 500® Index Portfolio returned -4.78% versus -4.38% for its benchmark, the S&P 500® Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The Portfolio intends to track the underlying return of the S&P 500® Index. There were no material market events or changes in strategy during the year that materially impacted the Portfolio’s relative return. Sources of return variance were related to the cumulative impact of investing the day-to-day cash flows in the Portfolio.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.There was no impact from either sector allocation or stock selection that caused any material performance variance between the Portfolio and its benchmark.(1)
Most sectors had negative returns for the year. The Financials sector was down 13.0%, Industrials fell 13.3% and Energy declined 18.1%. Health Care and Utilities were up 6.5% and 4.1% for the year, respectively.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A. Top contributors to the benchmark’s return included Amazon.com, Inc. (28.4% return) and Microsoft Corp. (20.8% return). Together, these two stocks made up approximately 6.2% of the benchmark. Facebook, Inc. Class A (-25.7%) was the largest detractor from the benchmark’s return over the year.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.The Portfolio uses S&P 500® Index futures contracts primarily to equitize open dividend receivables, as well as to manage day-to-day cash flows, to ensure the Portfolio is fully invested. The futures did not meaningfully impact performance, however, due to their index characteristics and size in relation to the Portfolio’s net assets.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A.There were no significant changes to the investment strategy or selection process during the reporting period. Over the 2018 calendar year, the portfolio management team added a total of four new members. Their names and positions have been provided below for reference.
• Manav Verma, CFA – Portfolio Manager
• Michael Trotter – Assistant Portfolio Manager
• Clinton Clark – Index Analyst
• Daniel Glenn – Portfolio Manager
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
47 | (continued) |
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting. Investors cannot invest directly in an index, although they can invest in its underlying securities or funds.
The S&P 500® Index is a capitalization-weighted index designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Ohio National Investments, Inc. (“ONI”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by ONI. The S&P 500® Index Portfolio of Ohio National Fund, Inc. is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 99.2 | |||
Money Market Funds and Other Net Assets | 0.8 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Microsoft Corp. | 3.7 | ||||
2. | Apple, Inc. | 3.3 | ||||
3. | Amazon.com, Inc. | 2.9 | ||||
4. | Berkshire Hathaway, Inc. Class B | 1.9 | ||||
5. | Johnson & Johnson | 1.6 | ||||
6. | JPMorgan Chase & Co. | 1.5 | ||||
7. | Alphabet, Inc. Class C | 1.5 | ||||
8. | Facebook, Inc. Class A | 1.5 | ||||
9. | Alphabet, Inc. Class A | 1.5 | ||||
10. | Exxon Mobil Corp. | 1.4 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Information Technology | 20.0 | |||
Health Care | 15.4 | |||
Financials | 13.3 | |||
Communication Services | 10.0 | |||
Consumer Discretionary | 9.9 | |||
Industrials | 9.1 | |||
Consumer Staples | 7.3 | |||
Energy | 5.3 | |||
Utilities | 3.3 | |||
Real Estate | 2.9 | |||
Materials | 2.7 | |||
|
| |||
99.2 | ||||
|
|
48
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 99.2% | Shares | Value | ||||||
COMMUNICATION SERVICES – 10.0% |
| |||||||
Activision Blizzard, Inc. (Entertainment) | 39,994 | $ | 1,862,520 | |||||
Alphabet, Inc. Class A (Interactive Media & Svs.) | (a) | 15,670 | 16,374,523 | |||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a) | 16,126 | 16,700,247 | |||||
AT&T, Inc. (Diversified Telecom. Svs.) | 381,466 | 10,887,040 | ||||||
CBS Corp. Class B (Media) | 17,648 | 771,570 | ||||||
CenturyLink, Inc. (Diversified Telecom. Svs.) | 49,844 | 755,137 | ||||||
Charter Communications, Inc. Class A (Media) | (a) | 9,239 | 2,632,838 | |||||
Comcast Corp. Class A (Media) | 237,961 | 8,102,572 | ||||||
Discovery, Inc. Class A (Media) | (a) | 8,217 | 203,289 | |||||
Discovery, Inc. Class C (Media) | (a) | 18,880 | 435,750 | |||||
DISH Network Corp. Class A (Media) | (a) | 12,015 | 300,014 | |||||
Electronic Arts, Inc. (Entertainment) | (a) | 15,836 | 1,249,619 | |||||
Facebook, Inc. Class A (Interactive Media & Svs.) | (a) | 125,922 | 16,507,115 | |||||
Interpublic Group of Cos., Inc. / The (Media) | 20,145 | 415,591 | ||||||
Netflix, Inc. (Entertainment) | (a) | 22,857 | 6,117,905 | |||||
News Corp. Class A (Media) | 20,145 | 228,646 | ||||||
News Corp. Class B (Media) | 6,532 | 75,445 | ||||||
Omnicom Group, Inc. (Media) | 11,746 | 860,277 | ||||||
Take-Two Interactive Software, Inc. (Entertainment) | (a) | 5,968 | 614,346 | |||||
TripAdvisor, Inc. (Interactive Media & Svs.) | (a) | 5,367 | 289,496 | |||||
Twenty-First Century Fox, Inc. Class A (Entertainment) | 55,398 | 2,665,752 | ||||||
Twenty-First Century Fox, Inc. Class B (Entertainment) | 25,532 | 1,219,919 | ||||||
Twitter, Inc. (Interactive Media & Svs.) | (a) | 37,905 | 1,089,390 | |||||
Verizon Communications, Inc. (Diversified Telecom. Svs.) | 216,574 | 12,175,790 | ||||||
Viacom, Inc. Class B (Entertainment) | 18,525 | 476,092 | ||||||
Walt Disney Co. / The (Entertainment) | 78,027 | 8,555,660 | ||||||
|
| |||||||
111,566,543 | ||||||||
|
| |||||||
CONSUMER DISCRETIONARY – 9.9% | ||||||||
Advance Auto Parts, Inc. (Specialty Retail) | 3,821 | 601,655 | ||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | (a) | 21,528 | 32,334,410 | |||||
Aptiv PLC (Auto Components) | 13,810 | 850,282 | ||||||
AutoZone, Inc. (Specialty Retail) | (a) | 1,322 | 1,108,285 | |||||
Best Buy Co., Inc. (Specialty Retail) | 12,271 | 649,872 | ||||||
Booking Holdings, Inc. (Internet & Direct Marketing Retail) | (a) | 2,428 | 4,182,036 | |||||
BorgWarner, Inc. (Auto Components) | 10,916 | 379,222 | ||||||
CarMax, Inc. (Specialty Retail) | (a) | 9,153 | 574,168 | |||||
Carnival Corp. (Hotels, Restaurants & Leisure) | 20,987 | 1,034,659 | ||||||
Chipotle Mexican Grill, Inc. (Hotels, Restaurants & Leisure) | (a) | 1,282 | 553,555 | |||||
D.R. Horton, Inc. (Household Durables) | 17,947 | 622,043 | ||||||
Darden Restaurants, Inc. (Hotels, Restaurants & Leisure) | 6,505 | 649,589 | ||||||
Dollar General Corp. (Multiline Retail) | 13,779 | 1,489,234 | ||||||
Dollar Tree, Inc. (Multiline Retail) | (a) | 12,473 | 1,126,561 | |||||
eBay, Inc. (Internet & Direct Marketing Retail) | (a) | 47,437 | 1,331,557 | |||||
Expedia Group, Inc. (Internet & Direct Marketing Retail) | 6,210 | 699,556 | ||||||
Foot Locker, Inc. (Specialty Retail) | 6,022 | 320,370 | ||||||
Ford Motor Co. (Automobiles) | 204,783 | 1,566,590 | ||||||
Gap, Inc. / The (Specialty Retail) | 11,196 | 288,409 | ||||||
Garmin Ltd. (Household Durables) | 6,334 | 401,069 | ||||||
General Motors Co. (Automobiles) | 68,798 | 2,301,293 | ||||||
Genuine Parts Co. (Distributors) | 7,692 | 738,586 | ||||||
Goodyear Tire & Rubber Co. / The (Auto Components) | 12,213 | 249,267 | ||||||
H&R Block, Inc. (Diversified Consumer Svs.) | 10,772 | 273,286 | ||||||
Hanesbrands, Inc. (Textiles, Apparel & Luxury Goods) | 18,907 | 236,905 | ||||||
Harley-Davidson, Inc. (Automobiles) | 8,535 | 291,214 | ||||||
Hasbro, Inc. (Leisure Products) | 6,100 | 495,625 |
Common Stocks (Continued) | Shares | Value | ||||||
CONSUMER DISCRETIONARY (continued) | ||||||||
Hilton Worldwide Holdings, Inc. (Hotels, Restaurants & Leisure) | 15,544 | $ | 1,116,059 | |||||
Home Depot, Inc. / The (Specialty Retail) | 59,203 | 10,172,259 | ||||||
Kohl’s Corp. (Multiline Retail) | 8,655 | 574,173 | ||||||
L Brands, Inc. (Specialty Retail) | 11,969 | 307,244 | ||||||
Leggett & Platt, Inc. (Household Durables) | 6,836 | 245,002 | ||||||
Lennar Corp. Class A (Household Durables) | 15,333 | 600,287 | ||||||
LKQ Corp. (Distributors) | (a) | 16,678 | 395,769 | |||||
Lowe’s Cos., Inc. (Specialty Retail) | 42,086 | 3,887,063 | ||||||
Macy’s, Inc. (Multiline Retail) | 16,115 | 479,905 | ||||||
Marriott International, Inc. Class A (Hotels, Restaurants & Leisure) | 14,840 | 1,611,030 | ||||||
Mattel, Inc. (Leisure Products) | (a) | 18,091 | 180,729 | |||||
McDonald’s Corp. (Hotels, Restaurants & Leisure) | 40,406 | 7,174,893 | ||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 26,251 | 636,849 | ||||||
Michael Kors Holdings Ltd. (Textiles, Apparel & Luxury Goods) | (a) | 7,874 | 298,582 | |||||
Mohawk Industries, Inc. (Household Durables) | (a) | 3,306 | 386,670 | |||||
Newell Brands, Inc. (Household Durables) | 22,509 | 418,442 | ||||||
NIKE, Inc. Class B (Textiles, Apparel & Luxury Goods) | 66,726 | 4,947,066 | ||||||
Nordstrom, Inc. (Multiline Retail) | 5,964 | 277,982 | ||||||
Norwegian Cruise Line Holdings Ltd. (Hotels, Restaurants & Leisure) | (a) | 11,530 | 488,757 | |||||
O’Reilly Automotive, Inc. (Specialty Retail) | (a) | 4,199 | 1,445,842 | |||||
PulteGroup, Inc. (Household Durables) | 13,543 | 351,983 | ||||||
PVH Corp. (Textiles, Apparel & Luxury Goods) | 3,970 | 369,011 | ||||||
Ralph Lauren Corp. (Textiles, Apparel & Luxury Goods) | 2,860 | 295,896 | ||||||
Ross Stores, Inc. (Specialty Retail) | 19,569 | 1,628,141 | ||||||
Royal Caribbean Cruises Ltd. (Hotels, Restaurants & Leisure) | 8,982 | 878,350 | ||||||
Starbucks Corp. (Hotels, Restaurants & Leisure) | 65,024 | 4,187,546 | ||||||
Tapestry, Inc. (Textiles, Apparel & Luxury Goods) | 15,189 | 512,629 | ||||||
Target Corp. (Multiline Retail) | 27,351 | 1,807,628 | ||||||
Tiffany & Co. (Specialty Retail) | 5,686 | 457,780 | ||||||
TJX Cos., Inc. / The (Specialty Retail) | 64,863 | 2,901,971 | ||||||
Tractor Supply Co. (Specialty Retail) | 6,398 | 533,849 | ||||||
Ulta Beauty, Inc. (Specialty Retail) | (a) | 2,953 | 723,013 | |||||
Under Armour, Inc. Class A (Textiles, Apparel & Luxury Goods) | (a) | 9,834 | 173,767 | |||||
Under Armour, Inc. Class C (Textiles, Apparel & Luxury Goods) | (a) | 10,082 | 163,026 | |||||
V.F. Corp. (Textiles, Apparel & Luxury Goods) | 17,054 | 1,216,632 | ||||||
Whirlpool Corp. (Household Durables) | 3,344 | 357,373 | ||||||
Wynn Resorts Ltd. (Hotels, Restaurants & Leisure) | 5,129 | 507,309 | ||||||
Yum! Brands, Inc. (Hotels, Restaurants & Leisure) | 16,369 | 1,504,638 | ||||||
|
| |||||||
109,564,443 | ||||||||
|
| |||||||
CONSUMER STAPLES – 7.3% | ||||||||
Altria Group, Inc. (Tobacco) | 98,488 | 4,864,322 | ||||||
Archer-Daniels-Midland Co. (Food Products) | 29,385 | 1,203,903 | ||||||
Brown-Forman Corp. Class B (Beverages) | 8,716 | 414,707 | ||||||
Campbell Soup Co. (Food Products) | 10,098 | 333,133 | ||||||
Church & Dwight Co., Inc. (Household Products) | 12,906 | 848,699 | ||||||
Clorox Co. / The (Household Products) | 6,691 | 1,031,351 | ||||||
Coca-Cola Co. / The (Beverages) | 200,789 | 9,507,359 | ||||||
Colgate-Palmolive Co. (Household Products) | 45,459 | 2,705,720 | ||||||
Conagra Brands, Inc. (Food Products) | 25,453 | 543,676 | ||||||
Constellation Brands, Inc. Class A (Beverages) | 8,708 | 1,400,420 | ||||||
Costco Wholesale Corp. (Food & Staples Retailing) | 22,968 | 4,678,811 | ||||||
Coty, Inc. Class A (Personal Products) | 23,620 | 154,947 | ||||||
Estee Lauder Cos., Inc. / The Class A (Personal Products) | 11,526 | 1,499,533 | ||||||
General Mills, Inc. (Food Products) | 31,251 | 1,216,914 |
49 | (continued) |
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||
CONSUMER STAPLES (continued) | ||||||||
Hershey Co. / The (Food Products) | 7,350 | $ | 787,773 | |||||
Hormel Foods Corp. (Food Products) | 14,290 | 609,897 | ||||||
J.M. Smucker Co. / The (Food Products) | 5,962 | 557,387 | ||||||
Kellogg Co. (Food Products) | 13,278 | 756,979 | ||||||
Kimberly-Clark Corp. (Household Products) | 18,151 | 2,068,125 | ||||||
Kraft Heinz Co. / The (Food Products) | 32,597 | 1,402,975 | ||||||
Kroger Co. / The (Food & Staples Retailing) | 41,826 | 1,150,215 | ||||||
Lamb Weston Holdings, Inc. (Food Products) | 7,676 | 564,647 | ||||||
McCormick & Co., Inc. (Food Products) | 6,382 | 888,630 | ||||||
Molson Coors Brewing Co. Class B (Beverages) | 9,817 | 551,323 | ||||||
Mondelez International, Inc. Class A (Food Products) | 76,201 | 3,050,326 | ||||||
Monster Beverage Corp. (Beverages) | (a) | 20,868 | 1,027,123 | |||||
PepsiCo, Inc. (Beverages) | 73,985 | 8,173,863 | ||||||
Philip Morris International, Inc. (Tobacco) | 81,478 | 5,439,471 | ||||||
Procter & Gamble Co. / The (Household Products) | 130,584 | 12,003,281 | ||||||
Sysco Corp. (Food & Staples Retailing) | 25,064 | 1,570,510 | ||||||
Tyson Foods, Inc. Class A (Food Products) | 15,467 | 825,938 | ||||||
Walgreens Boots Alliance, Inc. (Food & Staples Retailing) | 42,136 | 2,879,153 | ||||||
Walmart, Inc. (Food & Staples Retailing) | 74,615 | 6,950,387 | ||||||
|
| |||||||
81,661,498 | ||||||||
|
| |||||||
ENERGY – 5.3% | ||||||||
Anadarko Petroleum Corp. (Oil, Gas & Consumable Fuels) | 26,431 | 1,158,735 | ||||||
Apache Corp. (Oil, Gas & Consumable Fuels) | 19,893 | 522,191 | ||||||
Baker Hughes, a GE Co. (Energy Equip. & Svs.) | 26,909 | 578,543 | ||||||
Cabot Oil & Gas Corp. (Oil, Gas & Consumable Fuels) | 22,600 | 505,110 | ||||||
Chevron Corp. (Oil, Gas & Consumable Fuels) | 100,151 | 10,895,427 | ||||||
Cimarex Energy Co. (Oil, Gas & Consumable Fuels) | 5,012 | 308,990 | ||||||
Concho Resources, Inc. (Oil, Gas & Consumable Fuels) | (a) | 10,496 | 1,078,884 | |||||
ConocoPhillips (Oil, Gas & Consumable Fuels) | 60,341 | 3,762,261 | ||||||
Devon Energy Corp. (Oil, Gas & Consumable Fuels) | 24,540 | 553,132 | ||||||
Diamondback Energy, Inc. (Oil, Gas & Consumable Fuels) | 8,084 | 749,387 | ||||||
EOG Resources, Inc. (Oil, Gas & Consumable Fuels) | 30,395 | 2,650,748 | ||||||
Exxon Mobil Corp. (Oil, Gas & Consumable Fuels) | 221,909 | 15,131,975 | ||||||
Halliburton Co. (Energy Equip. & Svs.) | 45,917 | 1,220,474 | ||||||
Helmerich & Payne, Inc. (Energy Equip. & Svs.) | 5,715 | 273,977 | ||||||
Hess Corp. (Oil, Gas & Consumable Fuels) | 13,043 | 528,241 | ||||||
HollyFrontier Corp. (Oil, Gas & Consumable Fuels) | 8,355 | 427,108 | ||||||
Kinder Morgan, Inc. (Oil, Gas & Consumable Fuels) | 99,483 | 1,530,049 | ||||||
Marathon Oil Corp. (Oil, Gas & Consumable Fuels) | 43,570 | 624,794 | ||||||
Marathon Petroleum Corp. (Oil, Gas & Consumable Fuels) | 36,210 | 2,136,752 | ||||||
National Oilwell Varco, Inc. (Energy Equip. & Svs.) | 20,094 | 516,416 | ||||||
Newfield Exploration Co. (Oil, Gas & Consumable Fuels) | (a) | 10,501 | 153,945 | |||||
Noble Energy, Inc. (Oil, Gas & Consumable Fuels) | 25,148 | 471,776 | ||||||
Occidental Petroleum Corp. (Oil, Gas & Consumable Fuels) | 39,574 | 2,429,052 | ||||||
ONEOK, Inc. (Oil, Gas & Consumable Fuels) | 21,561 | 1,163,216 | ||||||
Phillips 66 (Oil, Gas & Consumable Fuels) | 22,236 | 1,915,631 | ||||||
Pioneer Natural Resources Co. (Oil, Gas & Consumable Fuels) | 8,935 | 1,175,131 | ||||||
Schlumberger Ltd. (Energy Equip. & Svs.) | 72,582 | 2,618,759 | ||||||
TechnipFMC PLC (Energy Equip. & Svs.) | 22,301 | 436,654 |
Common Stocks (Continued) | Shares | Value | ||||||
ENERGY (continued) | ||||||||
Valero Energy Corp. (Oil, Gas & Consumable Fuels) | 22,240 | $ | 1,667,333 | |||||
Williams Cos., Inc. / The (Oil, Gas & Consumable Fuels) | 63,449 | 1,399,050 | ||||||
|
| |||||||
58,583,741 | ||||||||
|
| |||||||
FINANCIALS – 13.3% | ||||||||
Affiliated Managers Group, Inc. (Capital Markets) | 2,761 | 269,032 | ||||||
Aflac, Inc. (Insurance) | 39,901 | 1,817,890 | ||||||
Allstate Corp. / The (Insurance) | 18,053 | 1,491,719 | ||||||
American Express Co. (Consumer Finance) | 36,715 | 3,499,674 | ||||||
American International Group, Inc. (Insurance) | 46,368 | 1,827,363 | ||||||
Ameriprise Financial, Inc. (Capital Markets) | 7,304 | 762,318 | ||||||
Aon PLC (Insurance) | 12,624 | 1,835,025 | ||||||
Arthur J. Gallagher & Co. (Insurance) | 9,626 | 709,436 | ||||||
Assurant, Inc. (Insurance) | 2,732 | 244,350 | ||||||
Bank of America Corp. (Banks) | 478,390 | 11,787,530 | ||||||
Bank of New York Mellon Corp. / The (Capital Markets) | 47,679 | 2,244,251 | ||||||
BB&T Corp. (Banks) | 40,391 | 1,749,738 | ||||||
Berkshire Hathaway, Inc. Class B (Diversified Financial Svs.) | (a) | 101,965 | 20,819,214 | |||||
BlackRock, Inc. (Capital Markets) | 6,365 | 2,500,299 | ||||||
Brighthouse Financial, Inc. (Insurance) | (a) | 6,216 | 189,464 | |||||
Capital One Financial Corp. (Consumer Finance) | 24,826 | 1,876,597 | ||||||
CBOE Global Markets, Inc. (Capital Markets) | 5,881 | 575,338 | ||||||
Charles Schwab Corp. / The (Capital Markets) | 62,996 | 2,616,224 | ||||||
Chubb Ltd. (Insurance) | 24,152 | 3,119,955 | ||||||
Cincinnati Financial Corp. (Insurance) | 7,933 | 614,173 | ||||||
Citigroup, Inc. (Banks) | 128,001 | 6,663,732 | ||||||
Citizens Financial Group, Inc. (Banks) | 24,525 | 729,128 | ||||||
CME Group, Inc. (Capital Markets) | 18,752 | 3,527,626 | ||||||
Comerica, Inc. (Banks) | 8,475 | 582,148 | ||||||
Discover Financial Services (Consumer Finance) | 17,609 | 1,038,579 | ||||||
E*TRADE Financial Corp. (Capital Markets) | 13,326 | 584,745 | ||||||
Everest Re Group Ltd. (Insurance) | 2,131 | 464,047 | ||||||
Fifth Third Bancorp (Banks) | 34,363 | 808,561 | ||||||
First Republic Bank/CA (Banks) | 8,583 | 745,863 | ||||||
Franklin Resources, Inc. (Capital Markets) | 15,598 | 462,637 | ||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 18,132 | 3,028,951 | ||||||
Hartford Financial Services Group, Inc. / The (Insurance) | 18,803 | 835,793 | ||||||
Huntington Bancshares, Inc. (Banks) | 55,639 | 663,217 | ||||||
Intercontinental Exchange, Inc. (Capital Markets) | 29,854 | 2,248,902 | ||||||
Invesco Ltd. (Capital Markets) | 21,560 | 360,914 | ||||||
Jefferies Financial Group, Inc. (Diversified Financial Svs.) | 14,732 | 255,748 | ||||||
JPMorgan Chase & Co. (Banks) | 174,297 | 17,014,873 | ||||||
KeyCorp (Banks) | 54,223 | 801,416 | ||||||
Lincoln National Corp. (Insurance) | 11,196 | 574,467 | ||||||
Loews Corp. (Insurance) | 14,492 | 659,676 | ||||||
M&T Bank Corp. (Banks) | 7,357 | 1,053,007 | ||||||
Marsh & McLennan Cos., Inc. (Insurance) | 26,401 | 2,105,480 | ||||||
MetLife, Inc. (Insurance) | 51,724 | 2,123,787 | ||||||
Moody’s Corp. (Capital Markets) | 8,737 | 1,223,529 | ||||||
Morgan Stanley (Capital Markets) | 68,521 | 2,716,858 | ||||||
MSCI, Inc. (Capital Markets) | 4,614 | 680,242 | ||||||
Nasdaq, Inc. (Capital Markets) | 6,015 | 490,644 | ||||||
Northern Trust Corp. (Capital Markets) | 11,604 | 969,978 | ||||||
People’s United Financial, Inc. (Banks) | 19,783 | 285,469 | ||||||
PNC Financial Services Group, Inc. / The (Banks) | 24,185 | 2,827,468 | ||||||
Principal Financial Group, Inc. (Insurance) | 13,797 | 609,413 | ||||||
Progressive Corp. / The (Insurance) | 30,562 | 1,843,805 | ||||||
Prudential Financial, Inc. (Insurance) | 21,647 | 1,765,313 | ||||||
Raymond James Financial, Inc. (Capital Markets) | 6,759 | 502,937 |
50 | (continued) |
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||
FINANCIALS (continued) | ||||||||
Regions Financial Corp. (Banks) | 54,189 | $ | 725,049 | |||||
S&P Global, Inc. (Capital Markets) | 13,151 | 2,234,881 | ||||||
State Street Corp. (Capital Markets) | 19,893 | 1,254,651 | ||||||
SunTrust Banks, Inc. (Banks) | 23,549 | 1,187,812 | ||||||
SVB Financial Group (Banks) | (a) | 2,791 | 530,067 | |||||
Synchrony Financial (Consumer Finance) | 34,658 | 813,077 | ||||||
T. Rowe Price Group, Inc. (Capital Markets) | 12,614 | 1,164,524 | ||||||
Torchmark Corp. (Insurance) | 5,379 | 400,897 | ||||||
Travelers Cos., Inc. / The (Insurance) | 13,883 | 1,662,489 | ||||||
U.S. Bancorp (Banks) | 79,623 | 3,638,771 | ||||||
Unum Group (Insurance) | 11,465 | 336,842 | ||||||
Wells Fargo & Co. (Banks) | 222,051 | 10,232,110 | ||||||
Willis Towers Watson PLC (Insurance) | 6,811 | 1,034,318 | ||||||
Zions Bancorp N.A. (Banks) | 10,073 | 410,374 | ||||||
|
| |||||||
147,424,405 | ||||||||
|
| |||||||
HEALTH CARE – 15.4% | ||||||||
Abbott Laboratories (Health Care Equip. & Supplies) | 92,056 | 6,658,410 | ||||||
AbbVie, Inc. (Biotechnology) | 78,841 | 7,268,352 | ||||||
ABIOMED, Inc. (Health Care Equip. & Supplies) | (a) | 2,361 | 767,419 | |||||
Agilent Technologies, Inc. (Life Sciences Tools & Svs.) | 16,708 | 1,127,122 | ||||||
Alexion Pharmaceuticals, Inc. (Biotechnology) | (a) | 11,693 | 1,138,430 | |||||
Align Technology, Inc. (Health Care Equip. & Supplies) | (a) | 3,815 | 798,975 | |||||
Allergan PLC (Pharmaceuticals) | 16,618 | 2,221,162 | ||||||
AmerisourceBergen Corp. (Health Care Providers & Svs.) | 8,220 | 611,568 | ||||||
Amgen, Inc. (Biotechnology) | 33,399 | 6,501,783 | ||||||
Anthem, Inc. (Health Care Providers & Svs.) | 13,556 | 3,560,212 | ||||||
Baxter International, Inc. (Health Care Equip. & Supplies) | 25,939 | 1,707,305 | ||||||
Becton Dickinson and Co. (Health Care Equip. & Supplies) | 14,060 | 3,167,999 | ||||||
Biogen, Inc. (Biotechnology) | (a) | 10,560 | 3,177,715 | |||||
Boston Scientific Corp. (Health Care Equip. & Supplies) | (a) | 72,530 | 2,563,210 | |||||
Bristol-Myers Squibb Co. (Pharmaceuticals) | 85,549 | 4,446,837 | ||||||
Cardinal Health, Inc. (Health Care Providers & Svs.) | 15,616 | 696,474 | ||||||
Celgene Corp. (Biotechnology) | (a) | 36,650 | 2,348,898 | |||||
Centene Corp. (Health Care Providers & Svs.) | (a) | 10,763 | 1,240,974 | |||||
Cerner Corp. (Health Care Technology) | (a) | 17,270 | 905,639 | |||||
Cigna Corp. (Health Care Providers & Svs.) | 19,958 | 3,790,384 | ||||||
Cooper Cos., Inc. / The (Health Care Equip. & Supplies) | 2,576 | 655,592 | ||||||
CVS Health Corp. (Health Care Providers & Svs.) | 67,781 | 4,441,011 | ||||||
Danaher Corp. (Health Care Equip. & Supplies) | 32,328 | 3,333,663 | ||||||
DaVita, Inc. (Health Care Providers & Svs.) | (a) | 6,612 | 340,254 | |||||
DENTSPLY SIRONA, Inc. (Health Care Equip. & Supplies) | 11,665 | 434,055 | ||||||
Edwards Lifesciences Corp. (Health Care Equip. & Supplies) | (a) | 10,957 | 1,678,284 | |||||
Eli Lilly & Co. (Pharmaceuticals) | 49,415 | 5,718,304 | ||||||
Gilead Sciences, Inc. (Biotechnology) | 67,803 | 4,241,078 | ||||||
HCA Healthcare, Inc. (Health Care Providers & Svs.) | 14,070 | 1,751,011 | ||||||
Henry Schein, Inc. (Health Care Providers & Svs.) | (a) | 7,990 | 627,375 | |||||
Hologic, Inc. (Health Care Equip. & Supplies) | (a) | 14,120 | 580,332 | |||||
Humana, Inc. (Health Care Providers & Svs.) | 7,190 | 2,059,791 | ||||||
IDEXX Laboratories, Inc. (Health Care Equip. & Supplies) | (a) | 4,520 | 840,810 | |||||
Illumina, Inc. (Life Sciences Tools & Svs.) | (a) | 7,705 | 2,310,961 | |||||
Incyte Corp. (Biotechnology) | (a) | 9,258 | 588,716 | |||||
Intuitive Surgical, Inc. (Health Care Equip. & Supplies) | (a) | 5,986 | 2,866,815 | |||||
IQVIA Holdings, Inc. (Life Sciences Tools & Svs.) | (a) | 8,304 | 964,676 | |||||
Johnson & Johnson (Pharmaceuticals) | 140,572 | 18,140,817 |
Common Stocks (Continued) | Shares | Value | ||||||
HEALTH CARE (continued) | ||||||||
Laboratory Corp. of America Holdings (Health Care Providers & Svs.) | (a) | 5,289 | $ | 668,318 | ||||
McKesson Corp. (Health Care Providers & Svs.) | 10,240 | 1,131,213 | ||||||
Medtronic PLC (Health Care Equip. & Supplies) | 70,394 | 6,403,038 | ||||||
Merck & Co., Inc. (Pharmaceuticals) | 136,295 | 10,414,301 | ||||||
Mettler-Toledo International, Inc. (Life Sciences Tools & Svs.) | (a) | 1,313 | 742,607 | |||||
Mylan N.V. (Pharmaceuticals) | (a) | 27,026 | 740,512 | |||||
Nektar Therapeutics (Pharmaceuticals) | (a) | 9,072 | 298,197 | |||||
PerkinElmer, Inc. (Life Sciences Tools & Svs.) | 5,830 | 457,947 | ||||||
Perrigo Co. PLC (Pharmaceuticals) | 6,551 | 253,851 | ||||||
Pfizer, Inc. (Pharmaceuticals) | 302,976 | 13,224,902 | ||||||
Quest Diagnostics, Inc. (Health Care Providers & Svs.) | 7,132 | 593,882 | ||||||
Regeneron Pharmaceuticals, Inc. (Biotechnology) | (a) | 4,068 | 1,519,398 | |||||
ResMed, Inc. (Health Care Equip. & Supplies) | 7,469 | 850,495 | ||||||
Stryker Corp. (Health Care Equip. & Supplies) | 16,278 | 2,551,576 | ||||||
Thermo Fisher Scientific, Inc. (Life Sciences Tools & Svs.) | 21,100 | 4,721,969 | ||||||
UnitedHealth Group, Inc. (Health Care Providers & Svs.) | 50,424 | 12,561,627 | ||||||
Universal Health Services, Inc. Class B (Health Care Providers & Svs.) | 4,469 | 520,907 | ||||||
Varian Medical Systems, Inc. (Health Care Equip. & Supplies) | (a) | 4,776 | 541,169 | |||||
Vertex Pharmaceuticals, Inc. (Biotechnology) | (a) | 13,395 | 2,219,685 | |||||
Waters Corp. (Life Sciences Tools & Svs.) | (a) | 3,970 | 748,940 | |||||
WellCare Health Plans, Inc. (Health Care Providers & Svs.) | (a) | 2,620 | 618,556 | |||||
Zimmer Biomet Holdings, Inc. (Health Care Equip. & Supplies) | 10,691 | 1,108,871 | ||||||
Zoetis, Inc. (Pharmaceuticals) | 25,182 | 2,154,068 | ||||||
|
| |||||||
171,318,442 | ||||||||
|
| |||||||
INDUSTRIALS – 9.1% | ||||||||
3M Co. (Industrial Conglomerates) | 30,520 | 5,815,281 | ||||||
A.O. Smith Corp. (Building Products) | 7,542 | 322,043 | ||||||
Alaska Air Group, Inc. (Airlines) | 6,463 | 393,274 | ||||||
Allegion PLC (Building Products) | 4,982 | 397,115 | ||||||
American Airlines Group, Inc. (Airlines) | 21,485 | 689,883 | ||||||
AMETEK, Inc. (Electrical Equip.) | 12,166 | 823,638 | ||||||
Arconic, Inc. (Aerospace & Defense) | 22,542 | 380,058 | ||||||
Boeing Co. / The (Aerospace & Defense) | 27,681 | 8,927,122 | ||||||
C.H. Robinson Worldwide, Inc. (Air Freight & Logistics) | 7,207 | 606,037 | ||||||
Caterpillar, Inc. (Machinery) | 30,930 | 3,930,275 | ||||||
Cintas Corp. (Commercial Svs. & Supplies) | 4,538 | 762,339 | ||||||
Copart, Inc. (Commercial Svs. & Supplies) | (a) | 10,794 | 515,737 | |||||
CSX Corp. (Road & Rail) | 42,046 | 2,612,318 | ||||||
Cummins, Inc. (Machinery) | 7,742 | 1,034,641 | ||||||
Deere & Co. (Machinery) | 16,860 | 2,515,006 | ||||||
Delta Air Lines, Inc. (Airlines) | 32,702 | 1,631,830 | ||||||
Dover Corp. (Machinery) | 7,670 | 544,187 | ||||||
Eaton Corp. PLC (Electrical Equip.) | 22,716 | 1,559,681 | ||||||
Emerson Electric Co. (Electrical Equip.) | 32,819 | 1,960,935 | ||||||
Equifax, Inc. (Professional Svs.) | 6,320 | 588,582 | ||||||
Expeditors International of Washington, Inc. (Air Freight & Logistics) | 9,046 | 615,942 | ||||||
Fastenal Co. (Trading Companies & Distributors) | 15,046 | 786,755 | ||||||
FedEx Corp. (Air Freight & Logistics) | 12,707 | 2,050,020 | ||||||
Flowserve Corp. (Machinery) | 6,859 | 260,779 | ||||||
Fluor Corp. (Construction & Engineering) | 7,373 | 237,411 | ||||||
Fortive Corp. (Machinery) | 15,404 | 1,042,235 | ||||||
Fortune Brands Home & Security, Inc. (Building Products) | 7,412 | 281,582 | ||||||
General Dynamics Corp. (Aerospace & Defense) | 14,591 | 2,293,851 | ||||||
General Electric Co. (Industrial Conglomerates) | 455,900 | 3,451,163 | ||||||
Harris Corp. (Aerospace & Defense) | 6,167 | 830,387 |
51 | (continued) |
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||
INDUSTRIALS (continued) |
| |||||||
Honeywell International, Inc. (Industrial Conglomerates) | 38,801 | $ | 5,126,388 | |||||
Huntington Ingalls Industries, Inc. (Aerospace & Defense) | 2,251 | 428,388 | ||||||
IHS Markit Ltd. (Professional Svs.) | (a) | 18,800 | 901,836 | |||||
Illinois Tool Works, Inc. (Machinery) | 16,000 | 2,027,040 | ||||||
Ingersoll-Rand PLC (Machinery) | 12,876 | 1,174,677 | ||||||
J.B. Hunt Transport Services, Inc. (Road & Rail) | 4,578 | 425,937 | ||||||
Jacobs Engineering Group, Inc. (Construction & Engineering) | 6,267 | 366,369 | ||||||
Johnson Controls International PLC (Building Products) | 48,433 | 1,436,038 | ||||||
Kansas City Southern (Road & Rail) | 5,330 | 508,749 | ||||||
L3 Technologies, Inc. (Aerospace & Defense) | 4,125 | 716,348 | ||||||
Lockheed Martin Corp. (Aerospace & Defense) | 12,970 | 3,396,065 | ||||||
Masco Corp. (Building Products) | 16,012 | 468,191 | ||||||
Nielsen Holdings PLC (Professional Svs.) | 18,606 | 434,078 | ||||||
Norfolk Southern Corp. (Road & Rail) | 14,275 | 2,134,684 | ||||||
Northrop Grumman Corp. (Aerospace & Defense) | 9,100 | 2,228,590 | ||||||
PACCAR, Inc. (Machinery) | 18,315 | 1,046,519 | ||||||
Parker-Hannifin Corp. (Machinery) | 6,937 | 1,034,584 | ||||||
Pentair PLC (Machinery) | 8,371 | 316,256 | ||||||
Quanta Services, Inc. (Construction & Engineering) | 7,654 | 230,385 | ||||||
Raytheon Co. (Aerospace & Defense) | 14,916 | 2,287,369 | ||||||
Republic Services, Inc. (Commercial Svs. & Supplies) | 11,398 | 821,682 | ||||||
Robert Half International, Inc. (Professional Svs.) | 6,367 | 364,192 | ||||||
Rockwell Automation, Inc. (Electrical Equip.) | 6,325 | 951,786 | ||||||
Rollins, Inc. (Commercial Svs. & Supplies) | 7,720 | 278,692 | ||||||
Roper Technologies, Inc. (Industrial Conglomerates) | 5,421 | 1,444,805 | ||||||
Snap-on, Inc. (Machinery) | 2,918 | 423,956 | ||||||
Southwest Airlines Co. (Airlines) | 26,525 | 1,232,882 | ||||||
Stanley Black & Decker, Inc. (Machinery) | 7,918 | 948,101 | ||||||
Textron, Inc. (Aerospace & Defense) | 12,734 | 585,637 | ||||||
TransDigm Group, Inc. (Aerospace & Defense) | (a) | 2,544 | 865,113 | |||||
Union Pacific Corp. (Road & Rail) | 38,618 | 5,338,166 | ||||||
United Continental Holdings, Inc. (Airlines) | (a) | 11,996 | 1,004,425 | |||||
United Parcel Service, Inc. Class B (Air Freight & Logistics) | 36,439 | 3,553,896 | ||||||
United Rentals, Inc. (Trading Companies & Distributors) | (a) | 4,251 | 435,855 | |||||
United Technologies Corp. (Aerospace & Defense) | 42,538 | 4,529,446 | ||||||
Verisk Analytics, Inc. (Professional Svs.) | (a) | 8,628 | 940,797 | |||||
Waste Management, Inc. (Commercial Svs. & Supplies) | 20,559 | 1,829,545 | ||||||
WW Grainger, Inc. (Trading Companies & Distributors) | 2,391 | 675,123 | ||||||
Xylem, Inc. (Machinery) | 9,420 | 628,502 | ||||||
|
| |||||||
101,401,199 | ||||||||
|
| |||||||
INFORMATION TECHNOLOGY – 20.0% | ||||||||
Accenture PLC Class A (IT Svs.) | 33,411 | 4,711,285 | ||||||
Adobe Systems, Inc. (Software) | (a) | 25,585 | 5,788,350 | |||||
Advanced Micro Devices, Inc. (Semiconductors & Equip.) | (a) | 46,097 | 850,951 | |||||
Akamai Technologies, Inc. (IT Svs.) | (a) | 8,536 | 521,379 | |||||
Alliance Data Systems Corp. (IT Svs.) | 2,455 | 368,446 | ||||||
Amphenol Corp. Class A (Electronic Equip., Instr. & Comp.) | 15,794 | 1,279,630 | ||||||
Analog Devices, Inc. (Semiconductors & Equip.) | 19,401 | 1,665,188 | ||||||
ANSYS, Inc. (Software) | (a) | 4,380 | 626,077 | |||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 236,287 | 37,271,911 | ||||||
Applied Materials, Inc. (Semiconductors & Equip.) | 51,522 | 1,686,830 | ||||||
Arista Networks, Inc. (Communications Equip.) | (a) | 2,728 | 574,790 | |||||
Autodesk, Inc. (Software) | (a) | 11,479 | 1,476,314 |
Common Stocks (Continued) | Shares | Value | ||||||
INFORMATION TECHNOLOGY (continued) |
| |||||||
Automatic Data Processing, Inc. (IT Svs.) | 22,943 | $ | 3,008,286 | |||||
Broadcom, Inc. (Semiconductors & Equip.) | 21,670 | 5,510,248 | ||||||
Broadridge Financial Solutions, Inc. (IT Svs.) | 6,119 | 588,954 | ||||||
Cadence Design Systems, Inc. (Software) | (a) | 14,788 | 642,982 | |||||
Cisco Systems, Inc. (Communications Equip.) | 235,650 | 10,210,714 | ||||||
Citrix Systems, Inc. (Software) | 6,710 | 687,507 | ||||||
Cognizant Technology Solutions Corp. Class A (IT Svs.) | 30,349 | 1,926,554 | ||||||
Corning, Inc. (Electronic Equip., Instr. & Comp.) | 41,952 | 1,267,370 | ||||||
DXC Technology Co. (IT Svs.) | 14,682 | 780,642 | ||||||
F5 Networks, Inc. (Communications Equip.) | (a) | 3,178 | 514,931 | |||||
Fidelity National Information Services, Inc. (IT Svs.) | 17,165 | 1,760,271 | ||||||
Fiserv, Inc. (IT Svs.) | (a) | 20,885 | 1,534,839 | |||||
FleetCor Technologies, Inc. (IT Svs.) | (a) | 4,648 | 863,227 | |||||
FLIR Systems, Inc. (Electronic Equip., Instr. & Comp.) | 7,251 | 315,708 | ||||||
Fortinet, Inc. (Software) | (a) | 7,590 | 534,564 | |||||
Gartner, Inc. (IT Svs.) | (a) | 4,764 | 609,030 | |||||
Global Payments, Inc. (IT Svs.) | 8,293 | 855,257 | ||||||
Hewlett Packard Enterprise Co. (Tech. Hardware, Storage & Periph.) | 74,585 | 985,268 | ||||||
HP, Inc. (Tech. Hardware, Storage & Periph.) | 82,940 | 1,696,952 | ||||||
Intel Corp. (Semiconductors & Equip.) | 239,216 | 11,226,407 | ||||||
International Business Machines Corp. (IT Svs.) | 47,633 | 5,414,443 | ||||||
Intuit, Inc. (Software) | 13,603 | 2,677,751 | ||||||
IPG Photonics Corp. (Electronic Equip., Instr. & Comp.) | (a) | 1,875 | 212,419 | |||||
Jack Henry & Associates, Inc. (IT Svs.) | 4,051 | 512,532 | ||||||
Juniper Networks, Inc. (Communications Equip.) | 18,091 | 486,829 | ||||||
Keysight Technologies, Inc. (Electronic Equip., Instr. & Comp.) | (a) | 9,824 | 609,874 | |||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 8,023 | 717,978 | ||||||
Lam Research Corp. (Semiconductors & Equip.) | 8,134 | 1,107,607 | ||||||
Mastercard, Inc. Class A (IT Svs.) | 47,625 | 8,984,456 | ||||||
Maxim Integrated Products, Inc. (Semiconductors & Equip.) | 14,522 | 738,444 | ||||||
Microchip Technology, Inc. (Semiconductors & Equip.) | 12,396 | 891,520 | ||||||
Micron Technology, Inc. (Semiconductors & Equip.) | (a) | 58,708 | 1,862,805 | |||||
Microsoft Corp. (Software) | 405,100 | 41,146,007 | ||||||
Motorola Solutions, Inc. (Communications Equip.) | 8,571 | 986,008 | ||||||
NetApp, Inc. (Tech. Hardware, Storage & Periph.) | 13,202 | 787,763 | ||||||
NVIDIA Corp. (Semiconductors & Equip.) | 31,972 | 4,268,262 | ||||||
Oracle Corp. (Software) | 133,557 | 6,030,099 | ||||||
Paychex, Inc. (IT Svs.) | 16,751 | 1,091,328 | ||||||
PayPal Holdings, Inc. (IT Svs.) | (a) | 61,762 | 5,193,567 | |||||
Qorvo, Inc. (Semiconductors & Equip.) | (a) | 6,547 | 397,599 | |||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 63,534 | 3,615,720 | ||||||
Red Hat, Inc. (Software) | (a) | 9,265 | 1,627,305 | |||||
salesforce.com, Inc. (Software) | (a) | 40,096 | 5,491,949 | |||||
Seagate Technology PLC (Tech. Hardware, Storage & Periph.) | 13,651 | 526,792 | ||||||
Skyworks Solutions, Inc. (Semiconductors & Equip.) | 9,305 | 623,621 | ||||||
Symantec Corp. (Software) | 33,486 | 632,718 | ||||||
Synopsys, Inc. (Software) | (a) | 7,824 | 659,094 | |||||
TE Connectivity Ltd. (Electronic Equip., Instr. & Comp.) | 17,980 | 1,359,827 | ||||||
Texas Instruments, Inc. (Semiconductors & Equip.) | 50,346 | 4,757,697 | ||||||
Total System Services, Inc. (IT Svs.) | 8,797 | 715,108 | ||||||
VeriSign, Inc. (IT Svs.) | (a) | 5,576 | 826,865 | |||||
Visa, Inc. (IT Svs.) | 92,103 | 12,152,070 | ||||||
Western Digital Corp. (Tech. Hardware, Storage & Periph.) | 15,170 | 560,835 | ||||||
Western Union Co. / The (IT Svs.) | 23,209 | 395,945 |
52 | (continued) |
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||
INFORMATION TECHNOLOGY (continued) | ||||||||||
Xerox Corp. (Tech. Hardware, Storage & Periph.) | 10,866 | $ | 214,712 | |||||||
Xilinx, Inc. (Semiconductors & Equip.) | 13,263 | 1,129,610 | ||||||||
|
| |||||||||
221,748,021 | ||||||||||
|
| |||||||||
MATERIALS – 2.7% | ||||||||||
Air Products & Chemicals, Inc. (Chemicals) | 11,507 | 1,841,695 | ||||||||
Albemarle Corp. (Chemicals) | 5,567 | 429,049 | ||||||||
Avery Dennison Corp. (Containers & Packaging) | 4,545 | 408,277 | ||||||||
Ball Corp. (Containers & Packaging) | 17,778 | 817,433 | ||||||||
Celanese Corp. (Chemicals) | 7,011 | 630,780 | ||||||||
CF Industries Holdings, Inc. (Chemicals) | 12,097 | 526,341 | ||||||||
DowDuPont, Inc. (Chemicals) | 120,250 | 6,430,970 | ||||||||
Eastman Chemical Co. (Chemicals) | 7,340 | 536,627 | ||||||||
Ecolab, Inc. (Chemicals) | 13,324 | 1,963,291 | ||||||||
FMC Corp. (Chemicals) | 7,058 | 522,010 | ||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 75,949 | 783,034 | ||||||||
International Flavors & Fragrances, Inc. (Chemicals) | 5,309 | 712,839 | ||||||||
International Paper Co. (Containers & Packaging) | 21,229 | 856,803 | ||||||||
Linde PLC (Chemicals) | 28,883 | 4,506,903 | ||||||||
LyondellBasell Industries N.V. Class A (Chemicals) | 16,489 | 1,371,225 | ||||||||
Martin Marietta Materials, Inc. (Construction Materials) | 3,287 | 564,937 | ||||||||
Mosaic Co. / The (Chemicals) | 18,588 | 542,956 | ||||||||
Newmont Mining Corp. (Metals & Mining) | 27,919 | 967,393 | ||||||||
Nucor Corp. (Metals & Mining) | 16,454 | 852,482 | ||||||||
Packaging Corp. of America (Containers & Packaging) | 4,953 | 413,377 | ||||||||
PPG Industries, Inc. (Chemicals) | 12,573 | 1,285,338 | ||||||||
Sealed Air Corp. (Containers & Packaging) | 8,225 | 286,559 | ||||||||
Sherwin-Williams Co. / The (Chemicals) | 4,318 | 1,698,960 | ||||||||
Vulcan Materials Co. (Construction Materials) | 6,921 | 683,795 | ||||||||
Westrock Co. (Containers & Packaging) | 13,290 | 501,830 | ||||||||
|
| |||||||||
30,134,904 | ||||||||||
|
| |||||||||
REAL ESTATE – 2.9% | ||||||||||
Alexandria Real Estate Equities, Inc. (Equity REIT) | 5,636 | 649,493 | ||||||||
American Tower Corp. (Equity REIT) | 23,088 | 3,652,291 | ||||||||
Apartment Investment & Management Co. Class A (Equity REIT) | 8,158 | 357,973 | ||||||||
AvalonBay Communities, Inc. (Equity REIT) | 7,245 | 1,260,992 | ||||||||
Boston Properties, Inc. (Equity REIT) | 8,095 | 911,092 | ||||||||
CBRE Group, Inc. Class A (Real Estate Mgmt. & Development) | (a | ) | 16,616 | 665,305 | ||||||
Crown Castle International Corp. (Equity REIT) | 21,744 | 2,362,051 | ||||||||
Digital Realty Trust, Inc. (Equity REIT) | 10,812 | 1,152,019 | ||||||||
Duke Realty Corp. (Equity REIT) | 18,781 | 486,428 | ||||||||
Equinix, Inc. (Equity REIT) | 4,214 | 1,485,688 | ||||||||
Equity Residential (Equity REIT) | 19,311 | 1,274,719 | ||||||||
Essex Property Trust, Inc. (Equity REIT) | 3,463 | 849,162 | ||||||||
Extra Space Storage, Inc. (Equity REIT) | 6,631 | 599,973 | ||||||||
Federal Realty Investment Trust (Equity REIT) | 3,871 | 456,933 | ||||||||
HCP, Inc. (Equity REIT) | 25,027 | 699,004 | ||||||||
Host Hotels & Resorts, Inc. (Equity REIT) | 38,894 | 648,363 | ||||||||
Iron Mountain, Inc. (Equity REIT) | 15,002 | 486,215 | ||||||||
Kimco Realty Corp. (Equity REIT) | 22,087 | 323,574 | ||||||||
Macerich Co. / The (Equity REIT) | 5,545 | 239,988 | ||||||||
Mid-America Apartment Communities, Inc. (Equity REIT) | 5,967 | 571,042 |
Common Stocks (Continued) | Shares | Value | ||||||||
REAL ESTATE (continued) |
| |||||||||
Prologis, Inc. (Equity REIT) | 32,996 | $ | 1,937,525 | |||||||
Public Storage (Equity REIT) | 7,860 | 1,590,943 | ||||||||
Realty Income Corp. (Equity REIT) | 15,468 | 975,103 | ||||||||
Regency Centers Corp. (Equity REIT) | 8,881 | 521,137 | ||||||||
SBA Communications Corp. (Equity REIT) | (a | ) | 5,940 | 961,627 | ||||||
Simon Property Group, Inc. (Equity REIT) | 16,211 | 2,723,286 | ||||||||
SL Green Realty Corp. (Equity REIT) | 4,469 | 353,408 | ||||||||
UDR, Inc. (Equity REIT) | 14,442 | 572,192 | ||||||||
Ventas, Inc. (Equity REIT) | 18,684 | 1,094,695 | ||||||||
Vornado Realty Trust (Equity REIT) | 9,076 | 562,984 | ||||||||
Welltower, Inc. (Equity REIT) | 19,689 | 1,366,613 | ||||||||
Weyerhaeuser Co. (Equity REIT) | 39,268 | 858,398 | ||||||||
|
| |||||||||
32,650,216 | ||||||||||
|
| |||||||||
UTILITIES – 3.3% | ||||||||||
AES Corp. (Ind. Power & Renewable Elec.) | 34,713 | 501,950 | ||||||||
Alliant Energy Corp. (Electric Utilities) | �� | 12,366 | 522,464 | |||||||
Ameren Corp. (Multi-Utilities) | 12,804 | 835,205 | ||||||||
American Electric Power Co., Inc. (Electric Utilities) | 25,846 | 1,931,730 | ||||||||
American Water Works Co., Inc. (Water Utilities) | 9,466 | 859,229 | ||||||||
CenterPoint Energy, Inc. (Multi-Utilities) | 26,269 | 741,574 | ||||||||
CMS Energy Corp. (Multi-Utilities) | 14,850 | 737,302 | ||||||||
Consolidated Edison, Inc. (Multi-Utilities) | 16,326 | 1,248,286 | ||||||||
Dominion Energy, Inc. (Multi-Utilities) | 34,408 | 2,458,796 | ||||||||
DTE Energy Co. (Multi-Utilities) | 9,535 | 1,051,710 | ||||||||
Duke Energy Corp. (Electric Utilities) | 37,365 | 3,224,599 | ||||||||
Edison International (Electric Utilities) | 17,077 | 969,461 | ||||||||
Entergy Corp. (Electric Utilities) | 9,494 | 817,149 | ||||||||
Evergy, Inc. (Electric Utilities) | 13,809 | 783,937 | ||||||||
Eversource Energy (Electric Utilities) | 16,609 | 1,080,249 | ||||||||
Exelon Corp. (Electric Utilities) | 50,684 | 2,285,848 | ||||||||
FirstEnergy Corp. (Electric Utilities) | 25,466 | 956,248 | ||||||||
NextEra Energy, Inc. (Electric Utilities) | 25,051 | 4,354,365 | ||||||||
NiSource, Inc. (Multi-Utilities) | 19,041 | 482,689 | ||||||||
NRG Energy, Inc. (Ind. Power & Renewable Elec.) | 15,196 | 601,762 | ||||||||
PG&E Corp. (Electric Utilities) | (a | ) | 27,186 | 645,668 | ||||||
Pinnacle West Capital Corp. (Electric Utilities) | 5,875 | 500,550 | ||||||||
PPL Corp. (Electric Utilities) | 37,748 | 1,069,401 | ||||||||
Public Service Enterprise Group, Inc. (Multi-Utilities) | 26,492 | 1,378,909 | ||||||||
SCANA Corp. (Multi-Utilities) | 7,475 | 357,156 | ||||||||
Sempra Energy (Multi-Utilities) | 14,344 | 1,551,877 | ||||||||
Southern Co. / The (Electric Utilities) | 53,928 | 2,368,518 | ||||||||
WEC Energy Group, Inc. (Multi-Utilities) | 16,538 | 1,145,422 | ||||||||
Xcel Energy, Inc. (Electric Utilities) | 26,942 | 1,327,432 | ||||||||
|
| |||||||||
36,789,486 | ||||||||||
|
| |||||||||
Total Common Stocks (Cost $993,918,374) | $ | 1,102,842,898 | ||||||||
|
| |||||||||
Money Market Funds – 0.8% | Shares | Value | ||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 8,180,939 | $ | 8,180,121 | |||||
|
| |||||||||
Total Money Market Funds (Cost $8,180,121) | $ | 8,180,121 | ||||||||
|
| |||||||||
Total Investments – 100.0% (Cost $1,002,098,495) | (c | ) | $ | 1,111,023,019 | ||||||
Other Assets in Excess of Liabilities – 0.0% | (d | ) | 515,516 | |||||||
|
| |||||||||
Net Assets – 100.0% | $ | 1,111,538,535 | ||||||||
|
|
53 | (continued) |
Ohio National Fund, Inc. | ON S&P 500® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Non-income producing security. |
(b) | Rate represents the seven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
(d) | Includes $438,000 of cash pledged as collateral for the futures contracts outstanding at December 31, 2018. See also the following Schedule of Open Futures Contracts. |
The accompanying notes are an integral part of these financial statements.
Schedule of Open Futures Contracts | December 31, 2018 |
Description | Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable (Payable) | ||||||
CME E-mini S&P 500 Index - Long | 73 | March 15, 2019 | $9,103,880 | $9,143,980 | $40,100 | $(32,009) |
The accompanying notes are an integral part of these financial statements.
54
Ohio National Fund, Inc. | ON Federated Strategic Value Dividend Portfolio (Unaudited) |
Objective/Strategy |
The ON Federated Strategic Value Dividend Portfolio (formerly the Strategic Value Portfolio) seeks growth of capital and income by investing primarily in high dividend paying common stocks with dividend growth potential.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -8.45 | % | ||
Five years | 6.40 | % | ||
Ten years | 9.68 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.75% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Federated Strategic Value Dividend Portfolio returned -8.45% versus -5.94% for its benchmark, the Dow Jones U.S. Select Dividend Index (“DJSDI”).
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The year was mixed, oscillating between “risk-on” and “risk-off”, but one theme that remained dominant throughout the majority of the year was the underperformance of high yielding equity securities, creating a headwind for the Portfolio’s strategy. Within the S&P 500 Index, high yielding equity securities underperformed low yielding equity securities, but low beta outperformed high beta for the full year. The Portfolio’s unwavering commitment to its core objectives of providing investors with a stable, high and rising income stream from high quality investments was evidenced by the Portfolio’s gross weighted average dividend yield of 5.15%. This surpassed not only the broad market, represented by the S&P 500 Index with its 2.22% yield, and the 10 year U.S. Treasury Note (2.69%), but it also surpassed the 4.30% yield of the DJSDI, which aims to reflect the domestic high dividend-paying universe. The strategy’s tilt towards higher dividend yield reduced relative performance versus the DJSDI by 295 bps. A further detractor to relative performance, the Portfolio’s 27.4% average international exposure, posted a collective -13.76% return as international markets lagged the U.S.
The performance drag associated with a higher dividend yield and international exposure was offset by the strategy’s lower beta profile, adding 299 bps of performance. Further enhancing the dividend yield, the strategy experienced robust dividend growth, as 34 companies within the
Portfolio raised their dividends. AbbVie, Inc. increased its dividend twice in the period, for a cumulative increase of 50.7%. Other noteworthy increases included Altria Group, Inc. (21.2% increase) and PepsiCo, Inc. (15.2% increase).
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For stock selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.The strategy focuses on the dividend-rich segments of the economy, such as Consumer Staples, Health Care, Communication Services and Utilities, as reflected by the strategy’s substantial holdings in these sectors. Therefore, the strategy has a natural avoidance to the cyclical sectors that afford little to no dividend growth opportunities. The strategy has limited to no exposure to Industrials, Information Technology, Materials, and Consumer Discretionary. Further, the DJSDI has an outsized average weight in the Utilities sector, which creates notable dispersion if the sector greatly underperforms or outperforms in a given period.(1)
The primary driver of relative underperformance was the Portfolio’s underweight to, and selection in, Utilities. Relative weakness was also noted in Consumer Staples, as the Portfolio’s 24% weight posted a -19.5% return versus the benchmark’s 7% weight, which posted a -14% return. This underperformance was mainly driven by tobacco names as British American Tobacco PLC (“BAT”), Phillip Morris International, Inc. and Altria Group, Inc. BAT came under short-term price pressure, driven by the Food and Drug Administration (“FDA”) announcement of the potential menthol cigarette ban in the U.S. Philip Morris International, Inc. declined during the year, as it announced disappointing quarterly results in its e-cigarette segment. Additionally, Altria Group, Inc. faced price pressure after it announced a purchase of a 35% stake in JUUL Labs, Inc., which triggered numerous analyst downgrades across tobacco investments.(1)
The Portfolio’s top contributor to relative performance for the year was an 11.9% exposure (DJSDI has a 0% exposure) to Real Estate, which posted a return of 6.22% in the Portfolio, benefiting from the flight to safety at year end. The Portfolio’s 0% exposure in Materials also contributed to relative performance (6.1% weight in DJSDI), as the sector was the largest laggard for the year, declining 23%.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Not holding L Brands, Inc. was the top relative contributor. The Portfolio had little to no exposure to the Consumer Discretionary sector due to the lack of reliable dividend growth and yield opportunities. Verizon Communications, Inc., another contributor, benefited from strong earnings and healthy top-line growth. Not holding Ford Motor Company, another name in the Consumer Discretionary sector of the benchmark, was a third top relative contributor.(1)
Vodafone Group PLC, the Portfolio’s top detractor, which was one of the top performers in 2017, faced short-term headwinds with weaker than anticipated guidance from its management, M&A activity, a CEO transition and modest exposure to the underperforming Turkey market. Phillip Morris International, Inc., and Altria Group, Inc., described above, were the Portfolio’s other top detractors.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
55 | (continued) |
Ohio National Fund, Inc. | ON Federated Strategic Value Dividend Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Dow Jones U.S. Select Dividend Index is comprised of all dividend-paying companies in the Dow Jones U.S. Index that have a non-negative historical five-year dividend-per-share growth rate, a five-year average dividend to earnings-per-share ratio of less than or equal to 60%, paid dividends in each of the previous five years, and a three-month average daily trading volume of 200,000 shares. Current index components are included in the universe regardless of their dividend payout ratio or trading volume. The Dow Jones U.S. Index aims to consistently represent the top 95% of U.S. companies based on float-adjusted market capitalization, excluding non common issues and illiquid stocks. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 97.8 | |||
Money Market Funds and Other Net Assets | 2.2 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | AT&T, Inc. | 4.9 | ||||
2. | Crown Castle International Corp. | 4.4 | ||||
3. | Dominion Energy, Inc. | 4.2 | ||||
4. | Philip Morris International, Inc. | 4.2 | ||||
5. | Altria Group, Inc. | 4.2 | ||||
6. | AbbVie, Inc. | 4.1 | ||||
7. | BP PLC | 3.9 | ||||
8. | Verizon Communications, Inc. | 3.9 | ||||
9. | GlaxoSmithKline PLC | 3.8 | ||||
10. | Coca-Cola Co. / The | 3.7 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Consumer Staples | 23.5 | |||
Utilities | 17.3 | |||
Communication Services | 15.0 | |||
Energy | 14.4 | |||
Real Estate | 11.8 | |||
Health Care | 8.7 | |||
Financials | 4.2 | |||
Industrials | 2.2 | |||
Information Technology | 0.7 | |||
|
| |||
97.8 | ||||
|
|
56
Ohio National Fund, Inc. | ON Federated Strategic Value Dividend Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 97.8% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 15.0% | ||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 554,173 | $ | 15,816,098 | |||||||||
BCE, Inc. (Diversified Telecom. Svs.) | 213,630 | 8,439,105 | ||||||||||
Verizon Communications, Inc. (Diversified Telecom. Svs.) | 220,451 | 12,393,755 | ||||||||||
Vodafone Group PLC – ADR (Wireless Telecom. Svs.) | 598,818 | 11,545,211 | ||||||||||
|
| |||||||||||
48,194,169 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 23.5% | ||||||||||||
Altria Group, Inc. (Tobacco) | 274,920 | 13,578,299 | ||||||||||
British American Tobacco PLC (Tobacco) | (a | ) | 91,550 | 2,913,031 | ||||||||
Coca-Cola Co. / The (Beverages) | 254,275 | 12,039,921 | ||||||||||
General Mills, Inc. (Food Products) | 107,725 | 4,194,812 | ||||||||||
Imperial Brands PLC (Tobacco) | (a | ) | 134,950 | 4,095,963 | ||||||||
Kimberly-Clark Corp. (Household Products) | 64,875 | 7,391,857 | ||||||||||
Kraft Heinz Co. / The (Food Products) | 82,875 | 3,566,940 | ||||||||||
PepsiCo, Inc. (Beverages) | 46,600 | 5,148,368 | ||||||||||
Philip Morris International, Inc. (Tobacco) | 203,995 | 13,618,706 | ||||||||||
Procter & Gamble Co. / The (Household Products) | 100,940 | 9,278,405 | ||||||||||
|
| |||||||||||
75,826,302 | ||||||||||||
|
| |||||||||||
ENERGY – 14.4% | ||||||||||||
BP PLC (Oil, Gas & Consumable Fuels) | (a | ) | 1,975,000 | 12,485,332 | ||||||||
Chevron Corp. (Oil, Gas & Consumable Fuels) | 92,955 | 10,112,574 | ||||||||||
Exxon Mobil Corp. (Oil, Gas & Consumable Fuels) | 172,000 | 11,728,680 | ||||||||||
Occidental Petroleum Corp. (Oil, Gas & Consumable Fuels) | 105,225 | 6,458,711 | ||||||||||
TOTAL SA (Oil, Gas & Consumable Fuels) | (a | ) | 104,150 | 5,493,403 | ||||||||
|
| |||||||||||
46,278,700 | ||||||||||||
|
| |||||||||||
FINANCIALS – 4.2% | ||||||||||||
Canadian Imperial Bank of Commerce (Banks) | 54,175 | 4,034,950 | ||||||||||
Invesco Ltd. (Capital Markets) | 118,325 | 1,980,761 | ||||||||||
KeyCorp (Banks) | 160,425 | 2,371,082 | ||||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Insurance) | (a | ) | 11,900 | 2,595,373 | ||||||||
PNC Financial Services Group, Inc. / The (Banks) | 21,100 | 2,466,801 | ||||||||||
|
| |||||||||||
13,448,967 | ||||||||||||
|
|
Common Stocks (Continued) | Shares | Value | ||||||||||
HEALTH CARE – 8.7% | ||||||||||||
AbbVie, Inc. (Biotechnology) | 142,175 | $ | 13,107,113 | |||||||||
AstraZeneca PLC (Pharmaceuticals) | (a | ) | 36,005 | 2,687,626 | ||||||||
GlaxoSmithKline PLC (Pharmaceuticals) | (a | ) | 638,806 | 12,174,376 | ||||||||
|
| |||||||||||
27,969,115 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 2.2% | ||||||||||||
United Parcel Service, Inc. Class B (Air Freight & Logistics) | 71,700 | 6,992,901 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 0.7% | ||||||||||||
Paychex, Inc. (IT Svs.) | 35,000 | 2,280,250 | ||||||||||
|
| |||||||||||
REAL ESTATE – 11.8% | ||||||||||||
Crown Castle International Corp. (Equity REIT) | 128,875 | 13,999,691 | ||||||||||
Digital Realty Trust, Inc. (Equity REIT) | 33,695 | 3,590,202 | ||||||||||
National Retail Properties, Inc. (Equity REIT) | 78,700 | 3,817,737 | ||||||||||
Omega Healthcare Investors, Inc. (Equity REIT) | 94,150 | 3,309,372 | ||||||||||
Realty Income Corp. (Equity REIT) | 37,075 | 2,337,208 | ||||||||||
Ventas, Inc. (Equity REIT) | 136,805 | 8,015,405 | ||||||||||
Welltower, Inc. (Equity REIT) | 41,450 | 2,877,045 | ||||||||||
|
| |||||||||||
37,946,660 | ||||||||||||
|
| |||||||||||
UTILITIES – 17.3% | ||||||||||||
American Electric Power Co., Inc. (Electric Utilities) | 27,375 | 2,046,008 | ||||||||||
Dominion Energy, Inc. (Multi-Utilities) | 191,100 | 13,656,006 | ||||||||||
Duke Energy Corp. (Electric Utilities) | 138,081 | 11,916,390 | ||||||||||
National Grid PLC (Multi-Utilities) | (a | ) | 1,170,100 | 11,447,462 | ||||||||
PPL Corp. (Electric Utilities) | 275,275 | 7,798,541 | ||||||||||
Southern Co. / The (Electric Utilities) | 199,035 | 8,741,617 | ||||||||||
|
| |||||||||||
55,606,024 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $349,806,011) | $ | 314,543,088 | ||||||||||
|
| |||||||||||
Money Market Funds – 1.7% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 5,547,829 | $ | 5,547,275 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $5,547,463) | $ | 5,547,275 | ||||||||||
|
| |||||||||||
Total Investments – 99.5% (Cost $355,353,474) | (c | ) | $ | 320,090,363 | ||||||||
Other Assets in Excess of Liabilities – 0.5% | 1,748,670 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 321,839,033 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: | American Depositary Receipts |
Footnotes:
(a) | Security traded on a foreign exchange has been valued at an estimate of fair value that is different than the local market close price. These fair value estimates are determined by an independent fair valuation service that has been approved by the Board. These securities represent $53,892,566 or 16.7% of the Portfolio’s net assets. |
Other Portfolio securities are not subjected to fair value procedures because they are traded on domestic or foreign exchanges that have close times that are consistent with the U.S. market close, normally 4:00 pm Eastern Time. |
(b) | Rate represents the seven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
57
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Unaudited) |
Objective/Strategy |
The ON Federated High Income Bond Portfolio (formerly the High Income Bond Portfolio) seeks high current income by investing, under normal circumstances, at least 80% of its assets in lower rated corporate debt obligations commonly referred to as “junk bonds”. The Portfolio’s investments are generally rated Ba or lower by Moody’s, or BB or lower by Standard & Poor’s or Fitch.
Performance as of December 31, 2018 |
Average Annual returns |
| |||
One year | -3.25 | % | ||
Five years | 3.36 | % | ||
Ten years | 10.02 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.74% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Federated High Income Bond Portfolio returned -3.25% versus -2.08% for its benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The total return for the high-yield market for the reporting period was disappointing on both an absolute and relative basis. For example, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index (“BBHY2%ICI”), which returned -2.08% for the period, substantially underperformed the Bloomberg Barclays U.S. Aggregate Bond Index, a measure of high-quality bond performance, which returned 0.01% for the period. For most of the period, the high yield market performed well, compared to most fixed income assets, benefiting from a strong economy and quality corporate earnings, with credit spreads touching cycle lows in early October. However, the fourth quarter proved difficult for the high yield market, as a number of factors took the market lower. These factors included the ongoing trade dispute with China, concerns about Federal Reserve policy, slowing economies in China and Europe, continuing political rancor between President Trump and Democrats and a steep drop in oil prices. These factors, along with rich valuations, led equity markets to approach bear market territory, which also negatively impacted the high yield market. In the fourth quarter decline, the high yield market seemed to ignore continuing strong earnings from corporations, very low levels of unemployment in the U.S., good high yield issuer’s credit profiles and low default rates. The impact of these factors can be seen in the spread between high-yield bonds and U.S. Treasury securities with comparable maturities. According to the
Credit Suisse High Yield Bond Index, the spread began the reporting period at 394 basis points and made yearly lows of 353 basis points on October 3rd, before rising substantially to close the year at 575 basis points.
Within the high-yield market, major industry sectors that substantially outperformed the overall BBHY2%ICI during the reporting period included: pharmaceuticals, electric utilities, media & entertainment, cable & satellite and healthcare. Major industry sectors that substantially underperformed the overall BBHY2%ICI during the reporting period included: oil field services, independent energy, automotive, home construction and banking. From a credit quality perspective, the “CCC”-rated sector was the worst performer, with a -3.84% total return, followed by the “BB”-rated sector with a -2.42% return. The B-rated sector was the strongest performing quality sector, although it was also in negative territory with a -1.31% total return during the reporting period.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.The Portfolio was negatively affected by its security selection during the period. This was especially true in the healthcare, food & beverage, media & entertainment, packaging, technology and wireless telecommunications industry sectors. The Portfolio was positively impacted by security selection in the retail industry sector.(1)
The Portfolio was positively affected by its sector allocation during the reporting period. The Portfolio benefited from its underweights to the poor performing oil field services, banking, independent energy and home construction industry sectors. The Portfolio was overweight the strong performing pharmaceutical, healthcare, cable & satellite and media & entertainment industry sectors, but the benefit from this sector positioning was outweighed by the Portfolio’s specific holdings in these sectors, which underperformed.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Specific high-yield issuers held by the Portfolio that negatively impacted performance relative to the benchmark included Acosta, Inc., a marketing service company that works with large consumer product companies. Acosta, Inc. was negatively impacted as its customers have scaled back spending in light of weaker overall results. Sesi LLC, an oil field service company, was negatively impacted by the downturn in oil prices. Rackspace Hosting, Inc., a software solutions company that supports and manages cloud platforms and other hosting applications, was negatively impacted by a weak sales effort after a leveraged buyout transaction, as well as the loss of a major customer.(1)
Specific high-yield issuers held by the Portfolio that positively impacted performance relative to the benchmark included Urban One, Inc., an urban radio station operator and cable TV station operator. Urban Once, Inc. benefited from a refinancing transaction that resulted in a security the Portfolio owned being taken out at a premium. Platform Specialty Products Corp., which produces specialty chemicals and crop protection products, benefited from a plan to split the company in two, which will result in one of the Portfolio’s securities being retired at a premium in early 2019. Seminole Hard Rock Entertainment, Inc. / Seminole Hard Rock International LLC, 100% owned by the Seminole Tribe of Florida, operates
58 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Unaudited) (Continued) |
restaurants under the Hard Rock name, and licenses the name to various entities in the lodging sector as well. These securities outperformed due to their solid operations and short duration.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. All returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index is the 2% Issuer Cap component of the Bloomberg Barclays U.S. Corporate High Yield Bond Index. The Bloomberg Barclays U.S. Corporate High Yield Bond Index is an unmanaged index that includes all fixed income securities having a maximum quality rating of Ba1/BB+/BB+, a minimum amount outstanding of $150 million, and a least 1 year to maturity. The 2% Issuer Cap component limits the exposure of each issuer to 2% of the total market value and distributes any excess market value index–wide on a pro–rata basis. The index is presented on a total return basis.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Corporate Bonds(4) | 96.4 | |||
Money Market Funds and Other Net Assets | 3.6 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Bausch Health Cos., Inc. | 1.2 | ||||
6.125%, 04/15/2025 | ||||||
2. | CCO Holdings LLC / CCO Holdings Capital Corp. | 1.1 | ||||
5.750%, 01/15/2024 | ||||||
3. | Ortho-Clinical Diagnostics, Inc. / Ortho-Clinical Diagnostics SA | 1.0 | ||||
6.625%, 05/15/2022 | ||||||
4. | Park Aerospace Holdings Ltd. | 1.0 | ||||
5.500%, 02/15/2024 | ||||||
5. | Sprint Corp. | 0.9 | ||||
7.625%, 02/15/2025 | ||||||
6. | Jaguar Holding Co. II / Pharmaceutical Product Development LLC | 0.9 | ||||
6.375%, 08/01/2023 | ||||||
7. | Altice France SA | 0.9 | ||||
7.375%, 05/01/2026 | ||||||
8. | MPH Acquisition Holdings LLC | 0.8 | ||||
7.125%, 06/01/2024 | ||||||
9. | BWAY Holding Co. | 0.8 | ||||
7.250%, 04/15/2025 | ||||||
10. | HUB International Ltd. | 0.8 | ||||
7.000%, 05/01/2026 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Corporate Bonds): |
% of Net Assets | ||||
Communication Services | 18.4 | |||
Health Care | 17.1 | |||
Energy | 13.1 | |||
Consumer Discretionary | 10.7 | |||
Materials | 9.8 | |||
Industrials | 8.7 | |||
Information Technology | 6.3 | |||
Financials | 5.7 | |||
Utilities | 3.5 | |||
Consumer Staples | 3.1 | |||
|
| |||
96.4 | ||||
|
|
59
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio |
Schedule of Investments | December 31, 2018 |
Corporate Bonds – 96.4% | Rate | Maturity | Face Amount | Value | ||||||||||||||
COMMUNICATION SERVICES – 18.4% | ||||||||||||||||||
Acosta, Inc. (Media) | (a) | 7.750% | 10/01/2022 | $1,075,000 | $ | 198,875 | ||||||||||||
Altice France SA (Diversified Telecom. Svs.) | (a) | 7.375% | 05/01/2026 | 1,950,000 | 1,789,125 | |||||||||||||
Altice France SA (Diversified Telecom. Svs.) | (a) | 8.125% | 02/01/2027 | 200,000 | 188,500 | |||||||||||||
Altice Luxembourg SA (Wireless Telecom. Svs.) | (a) | 7.625% | 02/15/2025 | 1,150,000 | 859,625 | |||||||||||||
AMC Networks, Inc. (Media) | 5.000% | 04/01/2024 | 600,000 | 568,500 | ||||||||||||||
AMC Networks, Inc. (Media) | 4.750% | 08/01/2025 | 450,000 | 408,375 | ||||||||||||||
CBS Radio, Inc. (Media) | (a) | 7.250% | 11/01/2024 | 650,000 | 604,500 | |||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | 5.250% | 09/30/2022 | 300,000 | 297,375 | ||||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | 5.125% | 02/15/2023 | 150,000 | 146,250 | ||||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | 5.750% | 09/01/2023 | 325,000 | 323,375 | ||||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | 5.750% | 01/15/2024 | 2,325,000 | 2,313,375 | ||||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | (a) | 5.875% | 05/01/2027 | 400,000 | 388,000 | |||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | (a) | 5.000% | 02/01/2028 | 850,000 | 782,000 | |||||||||||||
Clear Channel Worldwide Holdings, Inc. (Media) | 6.500% | 11/15/2022 | 275,000 | 272,250 | ||||||||||||||
Clear Channel Worldwide Holdings, Inc. (Media) | 6.500% | 11/15/2022 | 175,000 | 175,000 | ||||||||||||||
CSC Holdings LLC (Media) | (a) | 5.125% | 12/15/2021 | 525,000 | 514,500 | |||||||||||||
CSC Holdings LLC (Media) | (a) | 5.375% | 07/15/2023 | 375,000 | 365,970 | |||||||||||||
CSC Holdings LLC (Media) | 5.250% | 06/01/2024 | 975,000 | 893,344 | ||||||||||||||
CSC Holdings LLC (Media) | (a) | 7.750% | 07/15/2025 | 525,000 | 534,187 | |||||||||||||
CSC Holdings LLC (Media) | (a) | 6.625% | 10/15/2025 | 300,000 | 303,750 | |||||||||||||
CSC Holdings LLC (Media) | (a) | 5.500% | 04/15/2027 | 1,100,000 | 1,023,000 | |||||||||||||
CSC Holdings LLC (Media) | (a) | 7.500% | 04/01/2028 | 550,000 | 548,625 | |||||||||||||
Digicel Group Ltd. (Wireless Telecom. Svs.) | (a) | 8.250% | 09/30/2020 | 200,000 | 135,000 | |||||||||||||
DISH DBS Corp. (Media) | 5.875% | 11/15/2024 | 1,275,000 | 1,026,375 | ||||||||||||||
DISH DBS Corp. (Media) | 7.750% | 07/01/2026 | 825,000 | 682,687 | ||||||||||||||
E.W. Scripps Co. / The (Media) | (a) | 5.125% | 05/15/2025 | 175,000 | 160,563 | |||||||||||||
EMI Music Publishing Group North America Holdings, Inc. (Entertainment) | (a) | 7.625% | 06/15/2024 | 525,000 | 559,125 | |||||||||||||
Gray Television, Inc. (Media) | (a) | 5.125% | 10/15/2024 | 250,000 | 230,500 | |||||||||||||
Gray Television, Inc. (Media) | (a) | 5.875% | 07/15/2026 | 825,000 | 769,147 | |||||||||||||
iHeartCommunications, Inc. (Acquired 06/09/2011 through 02/05/2014, Cost $669,543) (Media) | (b) | 9.000% | 03/01/2021 | 700,000 | 469,000 | |||||||||||||
Intelsat Jackson Holdings SA (Diversified Telecom. Svs.) | 5.500% | 08/01/2023 | 625,000 | 543,750 | ||||||||||||||
Intelsat Jackson Holdings SA (Diversified Telecom. Svs.) | (a) | 8.500% | 10/15/2024 | 650,000 | 630,500 | |||||||||||||
Intelsat Jackson Holdings SA (Diversified Telecom. Svs.) | (a) | 9.750% | 07/15/2025 | 350,000 | 350,980 | |||||||||||||
Match Group, Inc. (Interactive Media & Svs.) | (a) | 5.000% | 12/15/2027 | 675,000 | 619,312 | |||||||||||||
Nexstar Broadcasting, Inc. (Media) | 5.875% | 11/15/2022 | 350,000 | 349,125 | ||||||||||||||
Nexstar Broadcasting, Inc. (Media) | (a) | 5.625% | 08/01/2024 | 1,025,000 | 958,375 | |||||||||||||
Rackspace Hosting, Inc. (Interactive Media & Svs.) | (a) | 8.625% | 11/15/2024 | 1,150,000 | 897,000 | |||||||||||||
Sinclair Television Group, Inc. (Media) | (a) | 5.625% | 08/01/2024 | 700,000 | 656,250 | |||||||||||||
Sinclair Television Group, Inc. (Media) | (a) | 5.875% | 03/15/2026 | 500,000 | 466,250 | |||||||||||||
Sinclair Television Group, Inc. (Media) | (a) | 5.125% | 02/15/2027 | 250,000 | 220,625 | |||||||||||||
Sirius XM Radio, Inc. (Media) | (a) | 4.625% | 05/15/2023 | 425,000 | 406,937 | |||||||||||||
Sirius XM Radio, Inc. (Media) | (a) | 6.000% | 07/15/2024 | 275,000 | 275,688 | |||||||||||||
Sirius XM Radio, Inc. (Media) | (a) | 5.375% | 04/15/2025 | 75,000 | 71,063 | |||||||||||||
Sirius XM Radio, Inc. (Media) | (a) | 5.375% | 07/15/2026 | 725,000 | 677,875 | |||||||||||||
Sirius XM Radio, Inc. (Media) | (a) | 5.000% | 08/01/2027 | 250,000 | 228,438 | |||||||||||||
Sprint Capital Corp. (Wireless Telecom. Svs.) | 6.875% | 11/15/2028 | 825,000 | 779,625 | ||||||||||||||
Sprint Corp. (Wireless Telecom. Svs.) | 7.875% | 09/15/2023 | 175,000 | 179,594 | ||||||||||||||
Sprint Corp. (Wireless Telecom. Svs.) | 7.125% | 06/15/2024 | 375,000 | 371,647 | ||||||||||||||
Sprint Corp. (Wireless Telecom. Svs.) | 7.625% | 02/15/2025 | 1,825,000 | 1,825,000 | ||||||||||||||
Sprint Corp. (Wireless Telecom. Svs.) | 7.625% | 03/01/2026 | 325,000 | 320,938 | ||||||||||||||
TEGNA, Inc. (Media) | 6.375% | 10/15/2023 | 475,000 | 476,187 | ||||||||||||||
Telenet Finance Luxembourg Notes SARL (Media) | (a) | 5.500% | 03/01/2028 | 1,400,000 | 1,267,000 | |||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 6.500% | 01/15/2024 | 325,000 | 333,996 | ||||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 6.375% | 03/01/2025 | 125,000 | 126,558 | ||||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 5.125% | 04/15/2025 | 675,000 | 655,594 | ||||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 6.500% | 01/15/2026 | 325,000 | 331,500 | ||||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 5.375% | 04/15/2027 | 200,000 | 193,000 | ||||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 4.750% | 02/01/2028 | 250,000 | 226,250 | ||||||||||||||
Tribune Media Co. (Media) | 5.875% | 07/15/2022 | 750,000 | 753,750 | ||||||||||||||
Unitymedia GmbH (Media) | (a) | 6.125% | 01/15/2025 | 975,000 | 979,777 | |||||||||||||
Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH (Media) | (a) | 5.000% | 01/15/2025 | 200,000 | 195,400 | |||||||||||||
Urban One, Inc. (Media) | (a) | 7.375% | 04/15/2022 | 450,000 | 425,250 | |||||||||||||
Virgin Media Finance PLC (Media) | (a) | 6.000% | 10/15/2024 | 800,000 | 768,400 | |||||||||||||
Virgin Media Finance PLC (Media) | (a) | 5.750% | 01/15/2025 | 600,000 | 564,018 | |||||||||||||
Virgin Media Secured Finance PLC (Media) | (a) | 5.250% | 01/15/2026 | 425,000 | 389,406 | |||||||||||||
Ziggo B.V. (Diversified Telecom. Svs.) | (a) | 5.500% | 01/15/2027 | 600,000 | 537,000 | |||||||||||||
Ziggo Bond Co. B.V. (Diversified Telecom. Svs.) | (a) | 6.000% | 01/15/2027 | 775,000 | 678,125 | |||||||||||||
|
| |||||||||||||||||
37,261,081 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER DISCRETIONARY – 10.7% | ||||||||||||||||||
1011778 B.C. ULC / New Red Finance, Inc. (Hotels, Restaurants & Leisure) | (a) | 4.250% | 05/15/2024 | 250,000 | 230,203 |
60 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
CONSUMER DISCRETIONARY (continued) | ||||||||||||||||||
1011778 B.C. ULC / New Red Finance, Inc. (Hotels, Restaurants & Leisure) | (a) | 5.000% | 10/15/2025 | $1,550,000 | $ | 1,426,000 | ||||||||||||
Adient Global Holdings Ltd. (Auto Components) | (a) | 4.875% | 08/15/2026 | 1,175,000 | 898,875 | |||||||||||||
American Axle & Manufacturing, Inc. (Auto Components) | 6.500% | 04/01/2027 | 1,025,000 | 917,375 | ||||||||||||||
Aramark Services, Inc. (Hotels, Restaurants & Leisure) | 5.125% | 01/15/2024 | 175,000 | 173,250 | ||||||||||||||
Aramark Services, Inc. (Hotels, Restaurants & Leisure) | (a) | 5.000% | 04/01/2025 | 175,000 | 171,063 | |||||||||||||
Aramark Services, Inc. (Hotels, Restaurants & Leisure) | 4.750% | 06/01/2026 | 375,000 | 352,500 | ||||||||||||||
Aramark Services, Inc. (Hotels, Restaurants & Leisure) | (a) | 5.000% | 02/01/2028 | 575,000 | 536,188 | |||||||||||||
Boyd Gaming Corp. (Hotels, Restaurants & Leisure) | 6.375% | 04/01/2026 | 525,000 | 507,938 | ||||||||||||||
Boyd Gaming Corp. (Hotels, Restaurants & Leisure) | 6.000% | 08/15/2026 | 100,000 | 93,500 | ||||||||||||||
Caesars Resort Collection LLC / CRC Finco, Inc. (Hotels, Restaurants & Leisure) | (a) | 5.250% | 10/15/2025 | 1,225,000 | 1,053,500 | |||||||||||||
Dana Financing Luxembourg Sarl (Auto Components) | (a) | 6.500% | 06/01/2026 | 875,000 | 838,906 | |||||||||||||
Eldorado Resorts, Inc. (Hotels, Restaurants & Leisure) | 6.000% | 04/01/2025 | 500,000 | 482,320 | ||||||||||||||
Eldorado Resorts, Inc. (Hotels, Restaurants & Leisure) | (a) | 6.000% | 09/15/2026 | 200,000 | 189,000 | |||||||||||||
Gates Global LLC / Gates Global Co. (Auto Components) | (a) | 6.000% | 07/15/2022 | 739,000 | 724,220 | |||||||||||||
Goodyear Tire & Rubber Co. / The (Auto Components) | 5.125% | 11/15/2023 | 50,000 | 49,000 | ||||||||||||||
Goodyear Tire & Rubber Co. / The (Auto Components) | 5.000% | 05/31/2026 | 375,000 | 337,500 | ||||||||||||||
Goodyear Tire & Rubber Co. / The (Auto Components) | 4.875% | 03/15/2027 | 300,000 | 263,250 | ||||||||||||||
Hanesbrands, Inc. (Textiles, Apparel & Luxury Goods) | (a) | 4.875% | 05/15/2026 | 325,000 | 292,906 | |||||||||||||
Hilton Domestic Operating Co., Inc. (Hotels, Restaurants & Leisure) | (a) | 5.125% | 05/01/2026 | 525,000 | 504,000 | |||||||||||||
IHO Verwaltungs GmbH (Auto Components) | (a)(c) | 4.750% | 09/15/2026 | 1,175,000 | 1,022,920 | |||||||||||||
J.B. Poindexter & Co., Inc. (Auto Components) | (a) | 7.125% | 04/15/2026 | 350,000 | 327,250 | |||||||||||||
KFC Holding Co. / Pizza Hut Holdings LLC / Taco Bell of America LLC (Hotels, Restaurants & Leisure) | (a) | 5.250% | 06/01/2026 | 300,000 | 290,259 | |||||||||||||
KFC Holding Co. / Pizza Hut Holdings LLC / Taco Bell of America LLC (Hotels, Restaurants & Leisure) | (a) | 4.750% | 06/01/2027 | 525,000 | 488,250 | |||||||||||||
MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer, Inc. (Hotels, Restaurants & Leisure) | 5.625% | 05/01/2024 | 50,000 | 49,500 | ||||||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 5.750% | 06/15/2025 | 500,000 | 482,500 | ||||||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 4.625% | 09/01/2026 | 1,075,000 | 964,812 | ||||||||||||||
Mohegan Gaming & Entertainment (Hotels, Restaurants & Leisure) | (a) | 7.875% | 10/15/2024 | 700,000 | 653,625 | |||||||||||||
Party City Holdings, Inc. (Specialty Retail) | (a) | 6.125% | 08/15/2023 | 975,000 | 957,937 | |||||||||||||
Party City Holdings, Inc. (Specialty Retail) | (a) | 6.625% | 08/01/2026 | 400,000 | 364,000 | |||||||||||||
PetSmart, Inc. (Specialty Retail) | (a) | 7.125% | 03/15/2023 | 400,000 | 233,000 | |||||||||||||
Rivers Pittsburgh Borrower LP / Rivers Pittsburgh Finance Corp. (Hotels, Restaurants & Leisure) | (a) | 6.125% | 08/15/2021 | 825,000 | 800,250 | |||||||||||||
Sally Holdings LLC / Sally Capital, Inc. (Specialty Retail) | 5.625% | 12/01/2025 | 600,000 | 552,000 | ||||||||||||||
Seminole Hard Rock Entertainment, Inc. / Seminole Hard Rock International LLC (Hotels, Restaurants & Leisure) | (a) | 5.875% | 05/15/2021 | 1,125,000 | �� | 1,122,187 | ||||||||||||
Six Flags Entertainment Corp. (Hotels, Restaurants & Leisure) | (a) | 5.500% | 04/15/2027 | 875,000 | 824,687 | |||||||||||||
Stars Group Holdings B.V. / Stars Group U.S. Co-Borrower LLC (Hotels, Restaurants & Leisure) | (a) | 7.000% | 07/15/2026 | 625,000 | 607,812 | |||||||||||||
Station Casinos LLC (Hotels, Restaurants & Leisure) | (a) | 5.000% | 10/01/2025 | 725,000 | 656,125 | |||||||||||||
Sugarhouse HSP Gaming Prop. Mezz. LP / Sugarhouse HSP Gaming Finance Corp. (Hotels, Restaurants & Leisure) | (a) | 5.875% | 05/15/2025 | 675,000 | 631,125 | |||||||||||||
VOC Escrow Ltd. (Hotels, Restaurants & Leisure) | (a) | 5.000% | 02/15/2028 | 325,000 | 299,813 | |||||||||||||
Wyndham Hotels & Resorts, Inc. (Hotels, Restaurants & Leisure) | (a) | 5.375% | 04/15/2026 | 325,000 | 312,000 | |||||||||||||
|
| |||||||||||||||||
21,681,546 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER STAPLES – 3.1% | ||||||||||||||||||
Albertsons Cos. LLC / Safeway, Inc. / New Albertson’s LP / Albertson’s LLC (Food & Staples Retailing) | 6.625% | 06/15/2024 | 875,000 | 811,562 | ||||||||||||||
Albertsons Cos. LLC / Safeway, Inc. / New Albertson’s LP / Albertson’s LLC (Food & Staples Retailing) | 5.750% | 03/15/2025 | 825,000 | 721,875 | ||||||||||||||
B&G Foods, Inc. (Food Products) | 5.250% | 04/01/2025 | 1,100,000 | 1,023,000 | ||||||||||||||
Energizer Gamma Acquisition, Inc. (Household Products) | (a) | 6.375% | 07/15/2026 | 100,000 | 91,750 | |||||||||||||
Energizer Holdings, Inc. (Household Products) | (a) | 5.500% | 06/15/2025 | 125,000 | 112,813 | |||||||||||||
First Quality Finance Co., Inc. (Personal Products) | (a) | 5.000% | 07/01/2025 | 100,000 | 89,500 | |||||||||||||
Performance Food Group, Inc. (Food & Staples Retailing) | (a) | 5.500% | 06/01/2024 | 75,000 | 72,563 | |||||||||||||
Post Holdings, Inc. (Food Products) | (a) | 5.000% | 08/15/2026 | 1,650,000 | 1,501,500 | |||||||||||||
Post Holdings, Inc. (Food Products) | (a) | 5.750% | 03/01/2027 | 550,000 | 515,625 | |||||||||||||
Rite Aid Corp. (Food & Staples Retailing) | (a) | 6.125% | 04/01/2023 | 650,000 | 513,500 | |||||||||||||
U.S. Foods, Inc. (Food & Staples Retailing) | (a) | 5.875% | 06/15/2024 | 825,000 | 802,312 | |||||||||||||
|
| |||||||||||||||||
6,256,000 | ||||||||||||||||||
|
| |||||||||||||||||
ENERGY – 13.1% | ||||||||||||||||||
Andeavor Logistics LP / Tesoro Logistics Finance Corp. (Oil, Gas & Consumable Fuels) | 6.250% | 10/15/2022 | 28,000 | 28,560 | ||||||||||||||
Antero Midstream Partners LP / Antero Midstream Finance Corp. (Oil, Gas & Consumable Fuels) | 5.375% | 09/15/2024 | 675,000 | 629,437 | ||||||||||||||
Apergy Corp. (Energy Equip. & Svs.) | 6.375% | 05/01/2026 | 100,000 | 97,000 | ||||||||||||||
Berry Petroleum Co. LLC (Oil, Gas & Consumable Fuels) | (a) | 7.000% | 02/15/2026 | 325,000 | 292,500 | |||||||||||||
Callon Petroleum Co. (Oil, Gas & Consumable Fuels) | 6.125% | 10/01/2024 | 614,000 | 571,020 |
61 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
ENERGY (continued) | ||||||||||||||||||
Callon Petroleum Co. (Oil, Gas & Consumable Fuels) | 6.375% | 07/01/2026 | $ 225,000 | $ | 209,250 | |||||||||||||
Carrizo Oil & Gas, Inc. (Oil, Gas & Consumable Fuels) | 6.250% | 04/15/2023 | 100,000 | 92,500 | ||||||||||||||
Carrizo Oil & Gas, Inc. (Oil, Gas & Consumable Fuels) | 8.250% | 07/15/2025 | 450,000 | 441,000 | ||||||||||||||
Cheniere Corpus Christi Holdings LLC (Oil, Gas & Consumable Fuels) | 7.000% | 06/30/2024 | 375,000 | 395,625 | ||||||||||||||
Cheniere Corpus Christi Holdings LLC (Oil, Gas & Consumable Fuels) | 5.875% | 03/31/2025 | 350,000 | 348,250 | ||||||||||||||
Cheniere Corpus Christi Holdings LLC (Oil, Gas & Consumable Fuels) | 5.125% | 06/30/2027 | 225,000 | 212,411 | ||||||||||||||
Cheniere Energy Partners LP (Oil, Gas & Consumable Fuels) | 5.250% | 10/01/2025 | 900,000 | 839,250 | ||||||||||||||
Chesapeake Energy Corp. (Oil, Gas & Consumable Fuels) | 5.750% | 03/15/2023 | 50,000 | 43,125 | ||||||||||||||
Chesapeake Energy Corp. (Oil, Gas & Consumable Fuels) | 7.000% | 10/01/2024 | 175,000 | 151,375 | ||||||||||||||
Chesapeake Energy Corp. (Oil, Gas & Consumable Fuels) | 8.000% | 01/15/2025 | 175,000 | 154,438 | ||||||||||||||
Chesapeake Energy Corp. (Oil, Gas & Consumable Fuels) | 8.000% | 06/15/2027 | 1,025,000 | 861,000 | ||||||||||||||
CNX Midstream Partners LP / CNX Midstream Finance Corp. (Oil, Gas & Consumable Fuels) | (a) | 6.500% | 03/15/2026 | 725,000 | 688,750 | |||||||||||||
CrownRock LP / CrownRock Finance, Inc. (Oil, Gas & Consumable Fuels) | (a) | 5.625% | 10/15/2025 | 1,075,000 | 967,500 | |||||||||||||
CVR Refining LLC / Coffeyville Finance, Inc. (Oil, Gas & Consumable Fuels) | 6.500% | 11/01/2022 | 1,250,000 | 1,231,250 | ||||||||||||||
Endeavor Energy Resources LP / EER Finance, Inc. (Oil, Gas & Consumable Fuels) | (a) | 5.750% | 01/30/2028 | 300,000 | 306,060 | |||||||||||||
Enviva Partners LP / Enviva Partners Finance Corp. (Oil, Gas & Consumable Fuels) | 8.500% | 11/01/2021 | 1,025,000 | 1,050,625 | ||||||||||||||
EP Energy LLC / Everest Acquisition Finance, Inc. (Oil, Gas & Consumable Fuels) | 6.375% | 06/15/2023 | 150,000 | 47,250 | ||||||||||||||
EP Energy LLC / Everest Acquisition Finance, Inc. (Oil, Gas & Consumable Fuels) | (a) | 8.000% | 11/29/2024 | 550,000 | 409,750 | |||||||||||||
Gulfport Energy Corp. (Oil, Gas & Consumable Fuels) | 6.625% | 05/01/2023 | 175,000 | 165,375 | ||||||||||||||
Gulfport Energy Corp. (Oil, Gas & Consumable Fuels) | 6.000% | 10/15/2024 | 250,000 | 221,250 | ||||||||||||||
Gulfport Energy Corp. (Oil, Gas & Consumable Fuels) | 6.375% | 05/15/2025 | 275,000 | 243,375 | ||||||||||||||
Gulfport Energy Corp. (Oil, Gas & Consumable Fuels) | 6.375% | 01/15/2026 | 125,000 | 108,125 | ||||||||||||||
Holly Energy Partners LP / Holly Energy Finance Corp. (Oil, Gas & Consumable Fuels) | (a) | 6.000% | 08/01/2024 | 1,075,000 | 1,053,500 | |||||||||||||
Jagged Peak Energy LLC (Oil, Gas & Consumable Fuels) | (a) | 5.875% | 05/01/2026 | 350,000 | 325,500 | |||||||||||||
Laredo Petroleum, Inc. (Oil, Gas & Consumable Fuels) | 5.625% | 01/15/2022 | 150,000 | 134,625 | ||||||||||||||
Laredo Petroleum, Inc. (Oil, Gas��& Consumable Fuels) | 6.250% | 03/15/2023 | 475,000 | 426,313 | ||||||||||||||
Nine Energy Service, Inc. (Energy Equip. & Svs.) | (a) | 8.750% | 11/01/2023 | 325,000 | 308,750 | |||||||||||||
NuStar Logistics LP (Oil, Gas & Consumable Fuels) | 5.625% | 04/28/2027 | 875,000 | 815,937 | ||||||||||||||
Oasis Petroleum, Inc. (Oil, Gas & Consumable Fuels) | 6.875% | 03/15/2022 | 625,000 | 589,062 | ||||||||||||||
Oasis Petroleum, Inc. (Oil, Gas & Consumable Fuels) | (a) | 6.250% | 05/01/2026 | 75,000 | 63,000 | |||||||||||||
Parsley Energy LLC / Parsley Finance Corp. (Oil, Gas & Consumable Fuels) | (a) | 5.375% | 01/15/2025 | 175,000 | 161,000 | |||||||||||||
Parsley Energy LLC / Parsley Finance Corp. (Oil, Gas & Consumable Fuels) | (a) | 5.250% | 08/15/2025 | 175,000 | 158,375 | |||||||||||||
Parsley Energy LLC / Parsley Finance Corp. (Oil, Gas & Consumable Fuels) | (a) | 5.625% | 10/15/2027 | 475,000 | 431,656 | |||||||||||||
PDC Energy, Inc. (Oil, Gas & Consumable Fuels) | 6.125% | 09/15/2024 | 350,000 | 323,750 | ||||||||||||||
PDC Energy, Inc. (Oil, Gas & Consumable Fuels) | 5.750% | 05/15/2026 | 375,000 | 333,750 | ||||||||||||||
Precision Drilling Corp. (Energy Equip. & Svs.) | 6.500% | 12/15/2021 | 22,997 | 21,387 | ||||||||||||||
Precision Drilling Corp. (Energy Equip. & Svs.) | 7.750% | 12/15/2023 | 525,000 | 483,656 | ||||||||||||||
Precision Drilling Corp. (Energy Equip. & Svs.) | (a) | 7.125% | 01/15/2026 | 250,000 | 215,000 | |||||||||||||
QEP Resources, Inc. (Oil, Gas & Consumable Fuels) | 5.250% | 05/01/2023 | 125,000 | 110,625 | ||||||||||||||
QEP Resources, Inc. (Oil, Gas & Consumable Fuels) | 5.625% | 03/01/2026 | 400,000 | 332,000 | ||||||||||||||
Range Resources Corp. (Oil, Gas & Consumable Fuels) | 5.000% | 03/15/2023 | 175,000 | 154,000 | ||||||||||||||
Range Resources Corp. (Oil, Gas & Consumable Fuels) | 4.875% | 05/15/2025 | 600,000 | 492,000 | ||||||||||||||
SESI LLC (Energy Equip. & Svs.) | 7.125% | 12/15/2021 | 375,000 | 318,750 | ||||||||||||||
SESI LLC (Energy Equip. & Svs.) | 7.750% | 09/15/2024 | 1,075,000 | 854,625 | ||||||||||||||
Shelf Drilling Holdings Ltd. (Oil, Gas & Consumable Fuels) | (a) | 8.250% | 02/15/2025 | 575,000 | 491,625 | |||||||||||||
SM Energy Co. (Oil, Gas & Consumable Fuels) | 5.000% | 01/15/2024 | 175,000 | 152,250 | ||||||||||||||
SM Energy Co. (Oil, Gas & Consumable Fuels) | 5.625% | 06/01/2025 | 100,000 | 87,000 | ||||||||||||||
SM Energy Co. (Oil, Gas & Consumable Fuels) | 6.750% | 09/15/2026 | 450,000 | 402,750 | ||||||||||||||
SM Energy Co. (Oil, Gas & Consumable Fuels) | 6.625% | 01/15/2027 | 25,000 | 22,250 | ||||||||||||||
SRC Energy, Inc. (Oil, Gas & Consumable Fuels) | 6.250% | 12/01/2025 | 650,000 | 539,500 | ||||||||||||||
Summit Midstream Holdings LLC / Summit Midstream Finance Corp. (Oil, Gas & Consumable Fuels) | 5.500% | 08/15/2022 | 1,075,000 | 1,021,250 | ||||||||||||||
Summit Midstream Holdings LLC / Summit Midstream Finance Corp. (Oil, Gas & Consumable Fuels) | 5.750% | 04/15/2025 | 350,000 | 322,000 | ||||||||||||||
Sunoco LP / Sunoco Finance Corp. (Oil, Gas & Consumable Fuels) | 4.875% | 01/15/2023 | 50,000 | 48,750 | ||||||||||||||
Sunoco LP / Sunoco Finance Corp. (Oil, Gas & Consumable Fuels) | 5.500% | 02/15/2026 | 225,000 | 213,188 | ||||||||||||||
Sunoco LP / Sunoco Finance Corp. (Oil, Gas & Consumable Fuels) | 5.875% | 03/15/2028 | 350,000 | 327,383 | ||||||||||||||
Targa Resources Partners LP / Targa Resources Partners Finance Corp. (Oil, Gas & Consumable Fuels) | 5.250% | 05/01/2023 | 150,000 | 147,000 | ||||||||||||||
Targa Resources Partners LP / Targa Resources Partners Finance Corp. (Oil, Gas & Consumable Fuels) | (a) | 5.875% | 04/15/2026 | 150,000 | 145,875 | |||||||||||||
Targa Resources Partners LP / Targa Resources Partners Finance Corp. (Oil, Gas & Consumable Fuels) | 5.375% | 02/01/2027 | 700,000 | 656,250 | ||||||||||||||
Targa Resources Partners LP / Targa Resources Partners Finance Corp. (Oil, Gas & Consumable Fuels) | 5.000% | 01/15/2028 | 600,000 | 543,000 | ||||||||||||||
TransMontaigne Partners LP / TLP Finance Corp. (Oil, Gas & Consumable Fuels) | 6.125% | 02/15/2026 | 125,000 | 111,875 | ||||||||||||||
U.S.A. Compression Partners LP / U.S.A. Compression Finance Corp. (Energy Equip. & Svs.) | (a) | 6.875% | 04/01/2026 | 850,000 | 816,000 | |||||||||||||
Ultra Resources, Inc. (Oil, Gas & Consumable Fuels) | (a) | 6.875% | 04/15/2022 | 150,000 | 52,500 | |||||||||||||
Ultra Resources, Inc. (Oil, Gas & Consumable Fuels) | (a) | 7.125% | 04/15/2025 | 400,000 | 124,000 | |||||||||||||
Weatherford International LLC (Energy Equip. & Svs.) | 6.800% | 06/15/2037 | 500,000 | 262,500 | ||||||||||||||
Weatherford International Ltd. (Energy Equip. & Svs.) | 8.250% | 06/15/2023 | 200,000 | 120,500 |
62 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
ENERGY (continued) |
| |||||||||||||||||
Weatherford International Ltd. (Energy Equip. & Svs.) | 7.000% | 03/15/2038 | $ 325,000 | $ | 168,188 | |||||||||||||
Whiting Petroleum Corp. (Oil, Gas & Consumable Fuels) | 6.250% | 04/01/2023 | 600,000 | 546,000 | ||||||||||||||
Whiting Petroleum Corp. (Oil, Gas & Consumable Fuels) | 6.625% | 01/15/2026 | 325,000 | 278,688 | ||||||||||||||
|
| |||||||||||||||||
26,513,634 | ||||||||||||||||||
|
| |||||||||||||||||
FINANCIALS – 5.7% | ||||||||||||||||||
Acrisure LLC / Acrisure Finance, Inc. (Insurance) | (a) | 7.000% | 11/15/2025 | 975,000 | 831,187 | |||||||||||||
Ally Financial, Inc. (Consumer Finance) | 5.750% | 11/20/2025 | 550,000 | 547,250 | ||||||||||||||
Alpha 2 BV (Diversified Financial Svs.) | (a)(c) | 8.750% | 06/01/2023 | 325,000 | 311,188 | |||||||||||||
Alpha 3 BV / Alpha U.S. Bidco, Inc. (Diversified Financial Svs.) | (a) | 6.250% | 02/01/2025 | 900,000 | 846,000 | |||||||||||||
AmWINS Group, Inc. (Insurance) | (a) | 7.750% | 07/01/2026 | 675,000 | 637,875 | |||||||||||||
Ardonagh Midco 3 PLC (Insurance) | (a) | 8.625% | 07/15/2023 | 800,000 | 680,000 | |||||||||||||
AssuredPartners, Inc. (Insurance) | (a) | 7.000% | 08/15/2025 | 775,000 | 698,492 | |||||||||||||
Avolon Holdings Funding Ltd. (Diversified Financial Svs.) | (a) | 5.500% | 01/15/2023 | 75,000 | 72,750 | |||||||||||||
HUB International Ltd. (Insurance) | (a) | 7.000% | 05/01/2026 | 1,800,000 | 1,633,500 | |||||||||||||
Navient Corp. (Consumer Finance) | 6.125% | 03/25/2024 | 850,000 | 728,875 | ||||||||||||||
Navient Corp. (Consumer Finance) | 5.875% | 10/25/2024 | 1,050,000 | 876,750 | ||||||||||||||
Navient Corp. (Consumer Finance) | 6.750% | 06/15/2026 | 125,000 | 103,750 | ||||||||||||||
NFP Corp. (Insurance) | (a) | 6.875% | 07/15/2025 | 950,000 | 850,250 | |||||||||||||
Quicken Loans, Inc. (Thrifts & Mortgage Finance) | (a) | 5.750% | 05/01/2025 | 1,075,000 | 1,005,125 | |||||||||||||
Quicken Loans, Inc. (Thrifts & Mortgage Finance) | (a) | 5.250% | 01/15/2028 | 375,000 | 331,875 | |||||||||||||
Refinitiv U.S. Holdings, Inc. (Capital Markets) | (a) | 6.250% | 05/15/2026 | 200,000 | 193,000 | |||||||||||||
Refinitiv U.S. Holdings, Inc. (Capital Markets) | (a) | 8.250% | 11/15/2026 | 400,000 | 365,500 | |||||||||||||
USIS Merger Sub, Inc. (Insurance) | (a) | 6.875% | 05/01/2025 | 950,000 | 873,012 | |||||||||||||
|
| |||||||||||||||||
11,586,379 | ||||||||||||||||||
|
| |||||||||||||||||
HEALTH CARE – 17.1% | ||||||||||||||||||
Acadia Healthcare Co., Inc. (Health Care Providers & Svs.) | 5.625% | 02/15/2023 | 1,225,000 | 1,160,687 | ||||||||||||||
Acadia Healthcare Co., Inc. (Health Care Providers & Svs.) | 6.500% | 03/01/2024 | 400,000 | 386,000 | ||||||||||||||
Air Medical Group Holdings, Inc. (Health Care Providers & Svs.) | (a) | 6.375% | 05/15/2023 | 1,225,000 | 1,035,125 | |||||||||||||
Avantor, Inc. (Health Care Equip. & Supplies) | (a) | 6.000% | 10/01/2024 | 125,000 | 122,813 | |||||||||||||
Avantor, Inc. (Health Care Equip. & Supplies) | (a) | 9.000% | 10/01/2025 | 975,000 | 975,000 | |||||||||||||
Bausch Health Cos., Inc. (Pharmaceuticals) | (a) | 5.500% | 03/01/2023 | 350,000 | 319,092 | |||||||||||||
Bausch Health Cos., Inc. (Pharmaceuticals) | (a) | 7.000% | 03/15/2024 | 225,000 | 227,250 | |||||||||||||
Bausch Health Cos., Inc. (Pharmaceuticals) | (a) | 6.125% | 04/15/2025 | 2,725,000 | 2,377,562 | |||||||||||||
Bausch Health Cos., Inc. (Pharmaceuticals) | (a) | 5.500% | 11/01/2025 | 200,000 | 186,500 | |||||||||||||
Bausch Health Cos., Inc. (Pharmaceuticals) | (a) | 9.000% | 12/15/2025 | 525,000 | 522,375 | |||||||||||||
Bausch Health Cos., Inc. (Pharmaceuticals) | (a) | 8.500% | 01/31/2027 | 275,000 | 266,750 | |||||||||||||
Centene Corp. (Health Care Providers & Svs.) | (a) | 5.375% | 06/01/2026 | 425,000 | 413,312 | |||||||||||||
Charles River Laboratories International, Inc. (Life Sciences Tools & Svs.) | (a) | 5.500% | 04/01/2026 | 225,000 | 221,625 | |||||||||||||
CHS / Community Health Systems, Inc. (Health Care Providers & Svs.) | 6.875% | 02/01/2022 | 700,000 | 318,500 | ||||||||||||||
CHS / Community Health Systems, Inc. (Health Care Providers & Svs.) | 6.250% | 03/31/2023 | 600,000 | 545,280 | ||||||||||||||
CHS / Community Health Systems, Inc. (Health Care Providers & Svs.) | (a) | 8.625% | 01/15/2024 | 150,000 | 148,125 | |||||||||||||
Eagle Holding Co. II LLC (Health Care Providers & Svs.) | (a)(c) | 7.625% | 05/15/2022 | 400,000 | 382,000 | |||||||||||||
Endo Dac / Endo Finance LLC / Endo Finco, Inc. (Pharmaceuticals) | (a) | 6.000% | 07/15/2023 | 475,000 | 362,188 | |||||||||||||
Endo Dac / Endo Finance LLC / Endo Finco, Inc. (Pharmaceuticals) | (a) | 6.000% | 02/01/2025 | 1,225,000 | 878,937 | |||||||||||||
Envision Healthcare Corp. (Health Care Providers & Svs.) | (a) | 8.750% | 10/15/2026 | 575,000 | 497,375 | |||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.875% | 05/01/2023 | 275,000 | 278,438 | ||||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.000% | 03/15/2024 | 1,525,000 | 1,509,750 | ||||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.375% | 02/01/2025 | 900,000 | 877,500 | ||||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.250% | 04/15/2025 | 625,000 | 621,875 | ||||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.875% | 02/15/2026 | 650,000 | 646,750 | ||||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.375% | 09/01/2026 | 100,000 | 97,250 | ||||||||||||||
IQVIA, Inc. (Health Care Technology) | (a) | 5.000% | 10/15/2026 | 300,000 | 286,500 | |||||||||||||
Jaguar Holding Co. II / Pharmaceutical Product Development LLC (Health Care Providers & Svs.) | (a) | 6.375% | 08/01/2023 | 1,875,000 | 1,791,731 | |||||||||||||
Mallinckrodt International Finance SA / Mallinckrodt CB LLC (Pharmaceuticals) | (a) | 5.625% | 10/15/2023 | 1,525,000 | 1,159,000 | |||||||||||||
Mallinckrodt International Finance SA / Mallinckrodt CB LLC (Pharmaceuticals) | (a) | 5.500% | 04/15/2025 | 400,000 | 276,000 | |||||||||||||
MEDNAX, Inc. (Health Care Providers & Svs.) | (a) | 6.250% | 01/15/2027 | 325,000 | 313,625 | |||||||||||||
MPH Acquisition Holdings LLC (Health Care Providers & Svs.) | (a) | 7.125% | 06/01/2024 | 1,825,000 | 1,701,812 | |||||||||||||
Ortho-Clinical Diagnostics, Inc. / Ortho-Clinical Diagnostics SA (Health Care Equip. & Supplies) | (a) | 6.625% | 05/15/2022 | 2,250,000 | 2,025,000 | |||||||||||||
Polaris Intermediate Corp. (Health Care Providers & Svs.) | (a)(c) | 8.500% | 12/01/2022 | 375,000 | 342,045 | |||||||||||||
Prestige Brands, Inc. (Pharmaceuticals) | (a) | 5.375% | 12/15/2021 | 600,000 | 586,500 | |||||||||||||
Prestige Brands, Inc. (Pharmaceuticals) | (a) | 6.375% | 03/01/2024 | 1,300,000 | 1,254,500 | |||||||||||||
RegionalCare Hospital Partners Holdings, Inc. / LifePoint Health, Inc. (Health Care Providers & Svs.) | (a) | 9.750% | 12/01/2026 | 450,000 | 426,375 | |||||||||||||
Sotera Health Holdings LLC (Health Care Equip. & Supplies) | (a) | 6.500% | 05/15/2023 | 900,000 | 861,750 | |||||||||||||
Sotera Health Topco, Inc. (Health Care Equip. & Supplies) | (a)(c) | 8.125% | 11/01/2021 | 1,350,000 | 1,269,000 | |||||||||||||
Surgery Center Holdings, Inc. (Health Care Providers & Svs.) | (a) | 6.750% | 07/01/2025 | 1,000,000 | 850,000 | |||||||||||||
Team Health Holdings, Inc. (Health Care Providers & Svs.) | (a) | 6.375% | 02/01/2025 | 1,725,000 | 1,408,031 |
63 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
HEALTH CARE (continued) | ||||||||||||||||||
Teleflex, Inc. (Health Care Equip. & Supplies) | 5.250% | 06/15/2024 | $ 275,000 | $ | 273,625 | |||||||||||||
Teleflex, Inc. (Health Care Equip. & Supplies) | 4.625% | 11/15/2027 | 275,000 | 255,063 | ||||||||||||||
Tenet Healthcare Corp. (Health Care Providers & Svs.) | 4.500% | 04/01/2021 | 275,000 | 267,438 | ||||||||||||||
Tenet Healthcare Corp. (Health Care Providers & Svs.) | (a) | 7.500% | 01/01/2022 | 150,000 | 152,250 | |||||||||||||
Tenet Healthcare Corp. (Health Care Providers & Svs.) | 6.750% | 06/15/2023 | 1,000,000 | 938,750 | ||||||||||||||
Tenet Healthcare Corp. (Health Care Providers & Svs.) | 5.125% | 05/01/2025 | 650,000 | 606,125 | ||||||||||||||
Vizient, Inc. (Health Care Providers & Svs.) | (a) | 10.375% | 03/01/2024 | 975,000 | 1,033,500 | |||||||||||||
WellCare Health Plans, Inc. (Health Care Providers & Svs.) | (a) | 5.375% | 08/15/2026 | 225,000 | 217,125 | |||||||||||||
West Street Merger Sub, Inc. (Life Sciences Tools & Svs.) | (a) | 6.375% | 09/01/2025 | 950,000 | 840,750 | |||||||||||||
|
| |||||||||||||||||
34,514,554 | ||||||||||||||||||
|
| |||||||||||||||||
INDUSTRIALS – 8.7% | ||||||||||||||||||
American Builders & Contractors Supply Co., Inc. (Trading Companies & Distributors) | (a) | 5.750% | 12/15/2023 | 50,000 | 49,500 | |||||||||||||
American Builders & Contractors Supply Co., Inc. (Trading Companies & Distributors) | (a) | 5.875% | 05/15/2026 | 975,000 | 928,385 | |||||||||||||
Beacon Roofing Supply, Inc. (Trading Companies & Distributors) | (a) | 4.875% | 11/01/2025 | 225,000 | 197,719 | |||||||||||||
Core & Main LP (Commercial Svs. & Supplies) | (a) | 6.125% | 08/15/2025 | 575,000 | 510,312 | |||||||||||||
Engility Corp. (Aerospace & Defense) | 8.875% | 09/01/2024 | 375,000 | 400,313 | ||||||||||||||
Garda World Security Corp. (Commercial Svs. & Supplies) | (a) | 8.750% | 05/15/2025 | 800,000 | 728,000 | |||||||||||||
Hillman Group, Inc. / The (Building Products) | (a) | 6.375% | 07/15/2022 | 875,000 | 708,750 | |||||||||||||
JPW Industries Holding Corp. (Machinery) | (a) | 9.000% | 10/01/2024 | 100,000 | 96,500 | |||||||||||||
Masonite International Corp. (Building Products) | (a) | 5.625% | 03/15/2023 | 175,000 | 169,750 | |||||||||||||
Masonite International Corp. (Building Products) | (a) | 5.750% | 09/15/2026 | 225,000 | 212,063 | |||||||||||||
Multi-Color Corp. (Commercial Svs. & Supplies) | (a) | 6.125% | 12/01/2022 | 950,000 | 942,875 | |||||||||||||
Multi-Color Corp. (Commercial Svs. & Supplies) | (a) | 4.875% | 11/01/2025 | 450,000 | 384,750 | |||||||||||||
NCI Building Systems, Inc. (Building Products) | (a) | 8.000% | 04/15/2026 | 750,000 | 686,250 | |||||||||||||
Nielsen Co. Luxembourg SARL / The (Professional Svs.) | (a) | 5.000% | 02/01/2025 | 125,000 | 116,875 | |||||||||||||
Nielsen Finance LLC / Nielsen Finance Co. (Professional Svs.) | (a) | 5.000% | 04/15/2022 | 1,125,000 | 1,074,375 | |||||||||||||
Park Aerospace Holdings Ltd. (Trading Companies & Distributors) | (a) | 5.500% | 02/15/2024 | 2,025,000 | 1,954,125 | |||||||||||||
Resideo Funding, Inc. (Building Products) | (a) | 6.125% | 11/01/2026 | 225,000 | 221,625 | |||||||||||||
Sensata Technologies BV (Electrical Equip.) | (a) | 5.625% | 11/01/2024 | 100,000 | 98,500 | |||||||||||||
Standard Industries, Inc. / NJ (Building Products) | (a) | 6.000% | 10/15/2025 | 225,000 | 215,798 | |||||||||||||
Tempo Acquisition LLC / Tempo Acquisition Finance Corp. (Professional Svs.) | (a) | 6.750% | 06/01/2025 | 1,600,000 | 1,480,000 | |||||||||||||
Tervita Escrow Corp. (Commercial Svs. & Supplies) | (a) | 7.625% | 12/01/2021 | 725,000 | 690,562 | |||||||||||||
Titan Acquisition Ltd. / Titan Co-Borrower LLC (Machinery) | (a) | 7.750% | 04/15/2026 | 600,000 | 513,000 | |||||||||||||
TransDigm U.K. Holdings PLC (Aerospace & Defense) | (a) | 6.875% | 05/15/2026 | 200,000 | 190,500 | |||||||||||||
TransDigm, Inc. (Aerospace & Defense) | 5.500% | 10/15/2020 | 250,000 | 248,125 | ||||||||||||||
TransDigm, Inc. (Aerospace & Defense) | 6.500% | 07/15/2024 | 600,000 | 583,500 | ||||||||||||||
TransDigm, Inc. (Aerospace & Defense) | 6.500% | 05/15/2025 | 350,000 | 334,250 | ||||||||||||||
TransDigm, Inc. (Aerospace & Defense) | 6.375% | 06/15/2026 | 850,000 | 790,500 | ||||||||||||||
Trident Merger Sub, Inc. (Machinery) | (a) | 6.625% | 11/01/2025 | 700,000 | 623,000 | |||||||||||||
U.S.G. Corp. (Building Products) | (a) | 4.875% | 06/01/2027 | 225,000 | 226,688 | |||||||||||||
United Rentals North America, Inc. (Trading Companies & Distributors) | 5.875% | 09/15/2026 | 100,000 | 94,250 | ||||||||||||||
United Rentals North America, Inc. (Trading Companies & Distributors) | 6.500% | 12/15/2026 | 250,000 | 246,250 | ||||||||||||||
United Rentals North America, Inc. (Trading Companies & Distributors) | 5.500% | 05/15/2027 | 350,000 | 324,625 | ||||||||||||||
United Rentals North America, Inc. (Trading Companies & Distributors) | 4.875% | 01/15/2028 | 675,000 | 592,312 | ||||||||||||||
WESCO Distribution, Inc. (Trading Companies & Distributors) | 5.375% | 12/15/2021 | 425,000 | 419,687 | ||||||||||||||
WESCO Distribution, Inc. (Trading Companies & Distributors) | 5.375% | 06/15/2024 | 600,000 | 565,500 | ||||||||||||||
|
| |||||||||||||||||
17,619,214 | ||||||||||||||||||
|
| |||||||||||||||||
INFORMATION TECHNOLOGY – 6.3% | ||||||||||||||||||
Anixter, Inc. (Electronic Equip., Instr. & Comp.) | (a) | 6.000% | 12/01/2025 | 175,000 | 173,688 | |||||||||||||
Banff Merger Sub, Inc. (IT Svs.) | (a) | 9.750% | 09/01/2026 | 975,000 | 892,125 | |||||||||||||
CDW LLC / CDW Finance Corp. (Electronic Equip., Instr. & Comp.) | 5.500% | 12/01/2024 | 475,000 | 469,063 | ||||||||||||||
CommScope Technologies LLC (Communications Equip.) | (a) | 6.000% | 06/15/2025 | 325,000 | 295,750 | |||||||||||||
CommScope Technologies LLC (Communications Equip.) | (a) | 5.000% | 03/15/2027 | 200,000 | 162,000 | |||||||||||||
Dell International LLC / EMC Corp. (Computers & Peripherals) | (a) | 7.125% | 06/15/2024 | 750,000 | 763,125 | |||||||||||||
First Data Corp. (IT Svs.) | (a) | 5.000% | �� | 01/15/2024 | 550,000 | 529,375 | ||||||||||||
First Data Corp. (IT Svs.) | (a) | 5.750% | 01/15/2024 | 1,025,000 | 1,001,005 | |||||||||||||
Gartner, Inc. (IT Svs.) | (a) | 5.125% | 04/01/2025 | 200,000 | 194,538 | |||||||||||||
Infor Software Parent LLC / Infor Software Parent, Inc. (Software) | (a)(c) | 7.125% | 05/01/2021 | 825,000 | 802,312 | |||||||||||||
Infor U.S., Inc. (Software) | 6.500% | 05/15/2022 | 1,325,000 | 1,281,474 | ||||||||||||||
Informatica LLC (Software) | (a) | 7.125% | 07/15/2023 | 1,100,000 | 1,071,279 | |||||||||||||
NCR Corp. (Tech. Hardware, Storage & Periph.) | 4.625% | 02/15/2021 | 350,000 | 341,250 | ||||||||||||||
NCR Corp. (Tech. Hardware, Storage & Periph.) | 5.000% | 07/15/2022 | 325,000 | 306,313 | ||||||||||||||
NCR Corp. (Tech. Hardware, Storage & Periph.) | 6.375% | 12/15/2023 | 225,000 | 218,072 | ||||||||||||||
Nuance Communications, Inc. (Software) | 6.000% | 07/01/2024 | 125,000 | 124,375 | ||||||||||||||
Nuance Communications, Inc. (Software) | 5.625% | 12/15/2026 | 750,000 | 712,500 | ||||||||||||||
Riverbed Technology, Inc. (Communications Equip.) | (a) | 8.875% | 03/01/2023 | 875,000 | 645,312 | |||||||||||||
RP Crown Parent LLC (Software) | (a) | 7.375% | 10/15/2024 | 1,075,000 | 1,083,062 | |||||||||||||
Solera LLC / Solera Finance, Inc. (Software) | (a) | 10.500% | 03/01/2024 | 325,000 | 346,125 | |||||||||||||
Sophia LP / Sophia Finance, Inc. (Software) | (a) | 9.000% | 09/30/2023 | 525,000 | 525,000 |
64 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||||
INFORMATION TECHNOLOGY (continued) | ||||||||||||||||||||
TTM Technologies, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 5.625 | % | 10/01/2025 | $ 600,000 | $ | 558,000 | ||||||||||||
Vantiv LLC / Vantiv Issuer Corp. (IT Svs.) | (a | ) | 4.375 | % | 11/15/2025 | 200,000 | 182,978 | |||||||||||||
|
| |||||||||||||||||||
12,678,721 | ||||||||||||||||||||
|
| |||||||||||||||||||
MATERIALS – 9.8% | ||||||||||||||||||||
ARD Finance SA (Containers & Packaging) | (c | ) | 7.125 | % | 09/15/2023 | 1,250,000 | 1,121,875 | |||||||||||||
Ardagh Packaging Finance PLC / Ardagh Holdings U.S.A., Inc. (Containers & Packaging) | (a | ) | 7.250 | % | 05/15/2024 | 750,000 | 748,125 | |||||||||||||
Ardagh Packaging Finance PLC / Ardagh Holdings U.S.A., Inc. (Containers & Packaging) | (a | ) | 6.000 | % | 02/15/2025 | 400,000 | 369,248 | |||||||||||||
Berry Global, Inc. (Containers & Packaging) | 5.500 | % | 05/15/2022 | 975,000 | 970,125 | |||||||||||||||
Berry Global, Inc. (Containers & Packaging) | 6.000 | % | 10/15/2022 | 75,000 | 75,750 | |||||||||||||||
BWAY Holding Co. (Containers & Packaging) | (a | ) | 5.500 | % | 04/15/2024 | 300,000 | 282,000 | |||||||||||||
BWAY Holding Co. (Containers & Packaging) | (a | ) | 7.250 | % | 04/15/2025 | 1,875,000 | 1,682,812 | |||||||||||||
Clearwater Paper Corp. (Paper & Forest Products) | 4.500 | % | 02/01/2023 | 650,000 | 585,000 | |||||||||||||||
Clearwater Paper Corp. (Paper & Forest Products) | (a | ) | 5.375 | % | 02/01/2025 | 625,000 | 564,063 | |||||||||||||
Coeur Mining, Inc. (Metals & Mining) | 5.875 | % | 06/01/2024 | 600,000 | 528,000 | |||||||||||||||
Compass Minerals International, Inc. (Metals & Mining) | (a | ) | 4.875 | % | 07/15/2024 | 1,000,000 | 905,000 | |||||||||||||
Crown Americas LLC / Crown Americas Capital Corp. VI (Containers & Packaging) | (a | ) | 4.750 | % | 02/01/2026 | 475,000 | 450,656 | |||||||||||||
Flex Acquisition Co., Inc. (Containers & Packaging) | (a | ) | 6.875 | % | 01/15/2025 | 1,500,000 | 1,335,000 | |||||||||||||
Flex Acquisition Co., Inc. (Containers & Packaging) | (a | ) | 7.875 | % | 07/15/2026 | 675,000 | 607,500 | |||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 3.875 | % | 03/15/2023 | 800,000 | 740,000 | |||||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 5.400 | % | 11/14/2034 | 925,000 | 728,437 | |||||||||||||||
Hexion, Inc. (Chemicals) | 6.625 | % | 04/15/2020 | 1,125,000 | 897,187 | |||||||||||||||
Hudbay Minerals, Inc. (Metals & Mining) | (a | ) | 7.250 | % | 01/15/2023 | 225,000 | 222,188 | |||||||||||||
Hudbay Minerals, Inc. (Metals & Mining) | (a | ) | 7.625 | % | 01/15/2025 | 425,000 | 415,438 | |||||||||||||
Koppers, Inc. (Chemicals) | (a | ) | 6.000 | % | 02/15/2025 | 550,000 | 484,000 | |||||||||||||
Owens-Brockway Glass Container, Inc. (Containers & Packaging) | (a | ) | 5.875 | % | 08/15/2023 | 225,000 | 225,563 | |||||||||||||
Owens-Brockway Glass Container, Inc. (Containers & Packaging) | (a | ) | 5.375 | % | 01/15/2025 | 175,000 | 166,250 | |||||||||||||
Owens-Brockway Glass Container, Inc. (Containers & Packaging) | (a | ) | 6.375 | % | 08/15/2025 | 600,000 | 594,000 | |||||||||||||
Pactiv LLC (Containers & Packaging) | 7.950 | % | 12/15/2025 | 225,000 | 219,375 | |||||||||||||||
Platform Specialty Products Corp. (Chemicals) | (a | ) | 6.500 | % | 02/01/2022 | 1,425,000 | 1,425,000 | |||||||||||||
Platform Specialty Products Corp. (Chemicals) | (a | ) | 5.875 | % | 12/01/2025 | 225,000 | 210,375 | |||||||||||||
PQ Corp. (Chemicals) | (a | ) | 5.750 | % | 12/15/2025 | 100,000 | 92,500 | |||||||||||||
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer (Containers & Packaging) | (a | ) | 7.000 | % | 07/15/2024 | 900,000 | 857,250 | |||||||||||||
Standard Industries Inc. (Construction Materials) | (a | ) | 5.000 | % | 02/15/2027 | 1,200,000 | 1,050,000 | |||||||||||||
Starfruit Finco B.V. / Starfruit U.S. Holdco LLC (Chemicals) | (a | ) | 8.000 | % | 10/01/2026 | 275,000 | 254,375 | |||||||||||||
Steel Dynamics, Inc. (Metals & Mining) | 5.250 | % | 04/15/2023 | �� | 125,000 | 123,281 | ||||||||||||||
Teck Resources Ltd. (Metals & Mining) | 6.125 | % | 10/01/2035 | 775,000 | 740,125 | |||||||||||||||
Teck Resources Ltd. (Metals & Mining) | 6.000 | % | 08/15/2040 | 175,000 | 162,750 | |||||||||||||||
|
| |||||||||||||||||||
19,833,248 | ||||||||||||||||||||
|
| |||||||||||||||||||
UTILITIES – 3.5% | ||||||||||||||||||||
AmeriGas Partners LP / AmeriGas Finance Corp. (Gas Utilities) | 5.875 | % | 08/20/2026 | 1,025,000 | 935,312 | |||||||||||||||
AmeriGas Partners LP / AmeriGas Finance Corp. (Gas Utilities) | 5.750 | % | 05/20/2027 | 200,000 | 177,000 | |||||||||||||||
Calpine Corp. (Ind. Power & Renewable Elec.) | 5.750 | % | 01/15/2025 | 900,000 | 823,500 | |||||||||||||||
Calpine Corp. (Ind. Power & Renewable Elec.) | (a | ) | 5.250 | % | 06/01/2026 | 150,000 | 136,875 | |||||||||||||
Ferrellgas LP / Ferrellgas Finance Corp. (Gas Utilities) | 6.500 | % | 05/01/2021 | 375,000 | 307,500 | |||||||||||||||
Ferrellgas LP / Ferrellgas Finance Corp. (Gas Utilities) | 6.750 | % | 01/15/2022 | 500,000 | 407,500 | |||||||||||||||
Ferrellgas LP / Ferrellgas Finance Corp. (Gas Utilities) | 6.750 | % | 06/15/2023 | 450,000 | 362,250 | |||||||||||||||
NRG Energy, Inc. (Ind. Power & Renewable Elec.) | 6.250 | % | 05/01/2024 | 350,000 | 355,250 | |||||||||||||||
NRG Energy, Inc. (Ind. Power & Renewable Elec.) | 7.250 | % | 05/15/2026 | 750,000 | 780,937 | |||||||||||||||
NRG Energy, Inc. (Ind. Power & Renewable Elec.) | 6.625 | % | 01/15/2027 | 250,000 | 251,875 | |||||||||||||||
Suburban Propane Partners LP / Suburban Energy Finance Corp. (Gas Utilities) | 5.500 | % | 06/01/2024 | 525,000 | 488,250 | |||||||||||||||
Suburban Propane Partners LP / Suburban Energy Finance Corp. (Gas Utilities) | 5.875 | % | 03/01/2027 | 600,000 | 531,000 | |||||||||||||||
TerraForm Power Operating LLC (Ind. Power & Renewable Elec.) | (a | ) | 4.250 | % | 01/31/2023 | 75,000 | 69,938 | |||||||||||||
TerraForm Power Operating LLC (Ind. Power & Renewable Elec.) | (a | ) | 6.625 | % | 06/15/2025 | 150,000 | 151,500 | |||||||||||||
TerraForm Power Operating LLC (Ind. Power & Renewable Elec.) | (a | ) | 5.000 | % | 01/31/2028 | 1,125,000 | 990,000 | |||||||||||||
Vistra Operations Co. LLC (Ind. Power & Renewable Elec.) | (a | ) | 5.500 | % | 09/01/2026 | 225,000 | 216,563 | |||||||||||||
|
| |||||||||||||||||||
6,985,250 | ||||||||||||||||||||
|
| |||||||||||||||||||
Total Corporate Bonds (Cost $213,049,215) | $ | 194,929,627 | ||||||||||||||||||
|
| |||||||||||||||||||
Money Market Funds – 2.2% | Shares | Value | ||||||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (d | ) | 4,411,474 | $ | 4,411,033 | |||||||||||||||
|
| |||||||||||||||||||
Total Money Market Funds (Cost $4,411,033) | $ | 4,411,033 | ||||||||||||||||||
|
| |||||||||||||||||||
Total Investments – 98.6% (Cost $217,460,248) | (e | ) | $ | 199,340,660 | ||||||||||||||||
Other Assets in Excess of Liabilities – 1.4% | 2,741,630 | |||||||||||||||||||
|
| |||||||||||||||||||
Net Assets – 100.0% | $ | 202,082,290 | ||||||||||||||||||
|
|
65 | (continued) |
Ohio National Fund, Inc. | ON Federated High Income Bond Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Security exempt from registration under Regulation D of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified buyers under Rule 144A. At December 31, 2018, the value of these securities totaled $121,198,738, or 60.0% of the Portfolio’s net assets. |
(b) | Represents a security that is in default. These securities were deemed liquid pursuant to procedures approved by the Board of Directors. |
(c) | Issuer of the security has the option to make coupon payments in cash or in additional par value of this bond (Payment-in-Kind). |
(d) | Rate represents the seven-day yield at December 31, 2018. |
(e) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
66
Ohio National Fund, Inc. | ON ClearBridge Small Cap Portfolio | (Unaudited) |
Objective/Strategy |
The ON ClearBridge Small Cap Portfolio (formerly the ClearBridge Small Cap Portfolio) seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in common stocks and other equity securities of small capitalization companies or in other investments that the portfolio managers believe have similar economic characteristics.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -9.24 | % | ||
Five years | 5.43 | % | ||
Ten years | 13.27 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.89% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON ClearBridge Small Cap Portfolio returned -9.24% versus -11.01% for its benchmark, the Russell 2000 Index.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Relative to the benchmark, stock selection effects had the most positive contribution to the Portfolio’s outperformance. This came primarily from the Health Care, Consumer Discretionary and Consumer Staples sectors. Stock selection in the Materials and Energy sectors, meanwhile, detracted. Sector allocation had a slight positive effect, primarily due to the Portfolio’s underweight to the Materials sector.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Amarin Corp. PLC – ADR (“Amarin”), a drug company in the Health Care sector, rose more than 400% in the third quarter, after it reported very favorable results from a 7.5-year study of patients with triglyceride levels between 150 and 500 mg/dL. Amarin’s drug is already approved to treat triglyceride levels over 500, which affects roughly 4 million people in the U.S. The study found that the drug reduced major cardiovascular events by 25% with no adverse side effects compared with the placebo. This result is similar to the effectiveness of statins, which 40 million Americans take.(1)
HealthEquity, Inc., in the Health Care sector, is a health care savings provider. HealthEquity, Inc. performed well during the first quarter of 2018, as the company reported continued growth in the number and size of health savings accounts (“HSAs”) it manages. The results alleviated some concerns about the growth outlook for the HSA market. We believe HealthEquity, Inc.’s proprietary platform and unmatched service levels will continue to be key differentiators and will likely result in value creation that is yet to be fully reflected in its stock price.(1)
Venator Materials PLC (“Venator”), a titanium dioxide (TiO2) producer in the Materials sector, fell sharply after announcing that it would cost significantly more than expected to repair and reopen its facility in Pori, Finland, which was severely damaged by fire two years ago. After seeing the cost skyrocket, Venator decided to close the facility at significant cost. While the company has received more than $500 million in insurance proceeds, this incident will cost the company hundreds of millions more by the time it closes. We still believe that Venator has a strong position in TiO2 and plan to continue holding the stock.(1)
Smart Sand, Inc. (“Smart Sand”), in the Energy sector, provides industrial sands for use in hydraulic fracturing operations in the oil and gas industry. Smart Sand was one of the worst stocks in the poorly performing oil services industry in the first quarter of 2018. Competitors in sand for hydraulic fracturing announced capacity expansions, leading to fears of overcapacity. Smart Sand itself has expanded capacity, but only at its existing Wisconsin mine, which remains one of the lowest-cost mines in the industry, and it has resisted buying new, lower-quality mines in Texas. Nevertheless, investors have ignored Smart Sand’s cost advantage, its high percentage of capacity under take-or-pay contracts, its strong balance sheet, and its large insider ownership. We continue to think the position has an excellent risk-reward profile.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.The Portfolio did not use derivatives during the period. The Portfolio participated in the following IPO’s, which had varying degrees of impact on benchmark relative performance: Liberty Oilfield Services, Inc. Class A (-35 bps), nLight, Inc. (-1 bps), Origin Bancorp, Inc. (4 bps), Avalara, Inc. (0 bps), BJ’s Wholesale Club, Inc. (14 bps), Hudson Ltd. Class A (27 bps) and Eventbrite, Inc. (1 bps). The overall return derived from IPO participation was slightly negative.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
67 | (continued) |
Ohio National Fund, Inc. | ON ClearBridge Small Cap Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Russell 2000 Index measures the performance of the small-cap segment of the U.S equity universe. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable U.S. equity market. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 97.8 | |||
Money Market Funds and Other Net Assets | 2.2 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Amarin Corp. PLC – ADR | 3.5 | ||||
2. | Aaron’s, Inc. | 2.5 | ||||
3. | Black Hills Corp. | 2.5 | ||||
4. | Cadence BanCorp | 2.4 | ||||
5. | Gray Television, Inc. | 2.3 | ||||
6. | First Interstate BancSystem, Inc. Class A | 2.2 | ||||
7. | Murphy U.S.A., Inc. | 2.0 | ||||
8. | HealthEquity, Inc. | 2.0 | ||||
9. | Sprouts Farmers Market, Inc. | 1.9 | ||||
10. | Encompass Health Corp. | 1.9 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Financials | 21.1 | |||
Information Technology | 16.0 | |||
Industrials | 14.1 | |||
Health Care | 12.1 | |||
Consumer Discretionary | 11.3 | |||
Real Estate | 5.0 | |||
Consumer Staples | 4.6 | |||
Utilities | 4.0 | |||
Communication Services | 3.6 | |||
Energy | 3.0 | |||
Materials | 3.0 | |||
|
| |||
97.8 | ||||
|
|
68
Ohio National Fund, Inc. | ON ClearBridge Small Cap Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 97.8% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 3.6% |
| |||||||||||
Gray Television, Inc. (Media) | (a | ) | 201,670 | $ | 2,972,616 | |||||||
ORBCOMM, Inc. (Diversified Telecom. Svs.) | (a | ) | 189,850 | 1,568,161 | ||||||||
|
| |||||||||||
4,540,777 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 11.3% |
| |||||||||||
Aaron’s, Inc. (Specialty Retail) | 75,690 | 3,182,765 | ||||||||||
Chuy’s Holdings, Inc. (Hotels, Restaurants & Leisure) | (a | ) | 63,860 | 1,132,876 | ||||||||
Cooper-Standard Holdings, Inc. (Auto Components) | (a | ) | 15,820 | 982,738 | ||||||||
Hudson Ltd. Class A (Specialty Retail) | (a | ) | 104,103 | 1,785,366 | ||||||||
Lithia Motors, Inc. Class A (Specialty Retail) | 17,970 | 1,371,650 | ||||||||||
Monro, Inc. (Specialty Retail) | 18,797 | 1,292,294 | ||||||||||
Murphy U.S.A., Inc. (Specialty Retail) | (a | ) | 32,850 | 2,517,624 | ||||||||
Service Corp. International (Diversified Consumer Svs.) | 50,280 | 2,024,273 | ||||||||||
|
| |||||||||||
14,289,586 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 4.6% |
| |||||||||||
Inter Parfums, Inc. (Personal Products) | 30,480 | 1,998,574 | ||||||||||
Sanderson Farms, Inc. (Food Products) | 14,010 | 1,391,053 | ||||||||||
Sprouts Farmers Market, Inc. (Food & Staples Retailing) | (a | ) | 102,440 | 2,408,364 | ||||||||
|
| |||||||||||
5,797,991 | ||||||||||||
|
| |||||||||||
ENERGY – 3.0% | ||||||||||||
Extraction Oil & Gas, Inc. (Oil, Gas & Consumable Fuels) | (a | ) | 221,830 | 951,651 | ||||||||
Liberty Oilfield Services, Inc. Class A (Energy Equip. & Svs.) | 107,430 | 1,391,218 | ||||||||||
Smart Sand, Inc. (Energy Equip. & Svs.) | (a | ) | 298,780 | 663,292 | ||||||||
U.S. Silica Holdings, Inc. (Energy Equip. & Svs.) | 81,510 | 829,772 | ||||||||||
|
| |||||||||||
3,835,933 | ||||||||||||
|
| |||||||||||
FINANCIALS – 21.1% | ||||||||||||
Assured Guaranty Ltd. (Insurance) | 42,520 | 1,627,666 | ||||||||||
Bank OZK (Banks) | 54,010 | 1,233,048 | ||||||||||
Cadence BanCorp (Banks) | 180,370 | 3,026,609 | ||||||||||
Encore Capital Group, Inc. (Consumer Finance) | (a | ) | 49,740 | 1,168,890 | ||||||||
Essent Group Ltd. (Thrifts & Mortgage Finance) | (a | ) | 41,930 | 1,433,167 | ||||||||
First Interstate BancSystem, Inc. Class A (Banks) | 76,230 | 2,786,969 | ||||||||||
Kinsale Capital Group, Inc. (Insurance) | 21,910 | 1,217,320 | ||||||||||
LegacyTexas Financial Group, Inc. (Banks) | 67,083 | 2,152,693 | ||||||||||
Main Street Capital Corp. (Capital Markets) | 33,739 | 1,140,716 | ||||||||||
NMI Holdings, Inc. Class A (Thrifts & Mortgage Finance) | (a | ) | 24,464 | 436,682 | ||||||||
OneMain Holdings, Inc. (Consumer Finance) | (a | ) | 88,970 | 2,161,081 | ||||||||
Origin Bancorp, Inc. (Banks) | 15,580 | 530,966 | ||||||||||
PennantPark Investment Corp. (Capital Markets) | 196,205 | 1,249,826 | ||||||||||
ProAssurance Corp. (Insurance) | 43,320 | 1,757,059 | ||||||||||
Radian Group, Inc. (Thrifts & Mortgage Finance) | 85,530 | 1,399,271 | ||||||||||
TriState Capital Holdings, Inc. (Banks) | (a | ) | 75,748 | 1,474,056 | ||||||||
Washington Federal, Inc. (Thrifts & Mortgage Finance) | 66,170 | 1,767,401 | ||||||||||
|
| |||||||||||
26,563,420 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 12.1% | ||||||||||||
Akebia Therapeutics, Inc. (Biotechnology) | (a | ) | 136,960 | 757,389 | ||||||||
Amarin Corp. PLC – ADR (Biotechnology) | (a | ) | 327,010 | 4,450,606 | ||||||||
Dynavax Technologies Corp. (Biotechnology) | (a | ) | 126,480 | 1,157,292 | ||||||||
Encompass Health Corp. (Health Care Providers & Svs.) | 38,100 | 2,350,770 | ||||||||||
HealthEquity, Inc. (Health Care Providers & Svs.) | (a | ) | 41,660 | 2,485,019 | ||||||||
Lexicon Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 141,720 | 941,021 | ||||||||
Quotient Ltd. (Health Care Equip. & Supplies) | (a | ) | 271,220 | 1,659,866 | ||||||||
Syneos Health, Inc. (Life Sciences Tools & Svs.) | (a | ) | 37,950 | 1,493,332 | ||||||||
|
| |||||||||||
15,295,295 | ||||||||||||
|
|
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS – 14.1% | ||||||||||||
Continental Building Products, Inc. (Building Products) | (a | ) | 52,050 | $ | 1,324,672 | |||||||
Dycom Industries, Inc. (Construction & Engineering) | (a | ) | 19,290 | 1,042,432 | ||||||||
EnPro Industries, Inc. (Machinery) | 25,160 | 1,512,116 | ||||||||||
Foundation Building Materials, Inc. (Trading Companies & Distributors) | (a | ) | 117,560 | 976,924 | ||||||||
GATX Corp. (Trading Companies & Distributors) | 20,160 | 1,427,530 | ||||||||||
ICF International, Inc. (Professional Svs.) | 20,676 | 1,339,391 | ||||||||||
Landstar System, Inc. (Road & Rail) | 14,871 | 1,422,708 | ||||||||||
Marten Transport Ltd. (Road & Rail) | 74,946 | 1,213,376 | ||||||||||
MRC Global, Inc. (Trading Companies & Distributors) | (a | ) | 101,550 | 1,241,956 | ||||||||
Rush Enterprises, Inc. Class A (Trading Companies & Distributors) | 50,150 | 1,729,172 | ||||||||||
SkyWest, Inc. (Airlines) | 39,840 | 1,771,685 | ||||||||||
Textainer Group Holdings Ltd. (Trading Companies & Distributors) | (a | ) | 91,060 | 906,958 | ||||||||
Triton International Ltd. (Trading Companies & Distributors) | 59,500 | 1,848,665 | ||||||||||
|
| |||||||||||
17,757,585 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 16.0% |
| |||||||||||
2U, Inc. (Software) | (a | ) | 30,367 | 1,509,847 | ||||||||
Advanced Energy Industries, Inc. (Semiconductors & Equip.) | (a | ) | 45,410 | 1,949,451 | ||||||||
Blackline, Inc. (Software) | (a | ) | 37,390 | 1,531,121 | ||||||||
EVERTEC, Inc. (IT Svs.) | 44,830 | 1,286,621 | ||||||||||
Itron, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 43,600 | 2,061,844 | ||||||||
Methode Electronics, Inc. (Electronic Equip., Instr. & Comp.) | 49,960 | 1,163,568 | ||||||||||
nLight, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 78,655 | 1,398,486 | ||||||||
Q2 Holdings, Inc. (Software) | (a | ) | 27,040 | 1,339,832 | ||||||||
Rapid7, Inc. (Software) | (a | ) | 60,940 | 1,898,890 | ||||||||
RingCentral, Inc. Class A (Software) | (a | ) | 17,890 | 1,474,852 | ||||||||
Semtech Corp. (Semiconductors & Equip.) | (a | ) | 21,750 | 997,673 | ||||||||
Tower Semiconductor Ltd. (Semiconductors & Equip.) | (a | ) | 131,620 | 1,940,079 | ||||||||
WNS Holdings Ltd. – ADR (IT Svs.) | (a | ) | 40,220 | 1,659,477 | ||||||||
|
| |||||||||||
20,211,741 | ||||||||||||
|
| |||||||||||
MATERIALS – 3.0% | ||||||||||||
Silgan Holdings, Inc. (Containers & Packaging) | 63,170 | 1,492,075 | ||||||||||
U.S. Concrete, Inc. (Construction Materials) | (a | ) | 29,350 | 1,035,468 | ||||||||
Venator Materials PLC (Chemicals) | (a | ) | 301,140 | 1,261,777 | ||||||||
|
| |||||||||||
3,789,320 | ||||||||||||
|
| |||||||||||
REAL ESTATE – 5.0% | ||||||||||||
Lexington Realty Trust (Equity REIT) | 240,340 | 1,973,191 | ||||||||||
Outfront Media, Inc. (Equity REIT) | 46,930 | 850,372 | ||||||||||
STORE Capital Corp. (Equity REIT) | 54,790 | 1,551,105 | ||||||||||
Summit Hotel Properties, Inc. (Equity REIT) | 196,570 | 1,912,626 | ||||||||||
|
| |||||||||||
6,287,294 | ||||||||||||
|
| |||||||||||
UTILITIES – 4.0% | ||||||||||||
Black Hills Corp. (Multi-Utilities) | 49,760 | 3,123,933 | ||||||||||
PNM Resources, Inc. (Electric Utilities) | 46,030 | 1,891,372 | ||||||||||
|
| |||||||||||
5,015,305 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $130,401,518) | $ | 123,384,247 | ||||||||||
|
| |||||||||||
Money Market Funds – 1.9% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 2,448,633 | $ | 2,448,388 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $2,448,517) | $ | 2,448,388 | ||||||||||
|
| |||||||||||
Total Investments – 99.7% (Cost $132,850,035) | (c | ) | $ | 125,832,635 | ||||||||
Other Assets in Excess of Liabilities – 0.3% | 356,076 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 126,188,711 | ||||||||||
|
|
69 | (continued) |
Ohio National Fund, Inc. | ON ClearBridge Small Cap Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts |
Footnotes:
(a) | Non-income producing security. |
(b) | Rate represents the seven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
70
Ohio National Fund, Inc. | ON Nasdaq-100® Index Portfolio (Unaudited) |
Objective/Strategy |
The ON Nasdaq-100® Index Portfolio (formerly the Nasdaq-100® Index Portfolio) seeks long-term growth of capital by investing, under normal circumstances, more than 80% of its assets in the common stocks of companies composing the Nasdaq-100® Index.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -0.42 | % | ||
Five years | 12.77 | % | ||
Ten years | 18.66 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.45% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Nasdaq-100® Index Portfolio returned -0.42% versus 0.04% for its benchmark, the Nasdaq-100® Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The Portfolio intends to track the underlying return of the Nasdaq-100® Index. There were no material market events or changes in strategy during the year that materially impacted the Portfolio’s relative return. Sources of return variance were related to the cumulative impact of investing the day-to-day cash flows in the Portfolio.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.There was no impact from either sector allocation or stock selection that caused any material performance variance between the Portfolio and its benchmark.(1)
Consumer Discretionary contributed the most to the overall benchmark return for the year. Utilities and Financials were also positive contributors. The Information Technology sector was the primary detractor for the year.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The two most significant contributors to the benchmark’s returns were Amazon.com, Inc. (28.4%) and Microsoft Corp. (20.8%). Together, these two stocks made up approximately 19.7% of the benchmark. Facebook, Inc. Class A (-25.7%) was the largest detractor from the benchmark’s return over the year.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.The Portfolio uses Nasdaq-100® Index futures contracts primarily to equitize open dividend receivables, as well as to manage day-to-day cash flows, to ensure the Portfolio is fully invested. The futures did not meaningfully impact performance, however, due to their index characteristics and size in relation to the Portfolio’s net assets.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A.There were no significant changes to the investment strategy or selection process during the reporting period. Over the 2018 calendar year, the portfolio management team added a total of four new members. Their names and positions have been provided below for reference.
● Manav Verma, CFA – Portfolio Manager
● Michael Trotter – Assistant Portfolio Manager
● Clinton Clark – Index Analyst
● Daniel Glenn – Portfolio Manager
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
71 | (continued) |
Ohio National Fund, Inc. | ON Nasdaq-100® Index Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Nasdaq-100® Index is a modified capitalization-weighted index of the 100 largest domestic and international non-financial companies listed on the NASDAQ® Stock Market. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
The Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq® are registered trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as “NASDAQ OMX”). Ohio National Investments, Inc. has licensed these marks for the Portfolio’s use. NASDAQ OMX has not passed on the Portfolio’s legality or suitability. NASDAQ OMX does not sponsor, endorse, sell or promote the Portfolio. NASDAQ OMX MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE PORTFOLIO.
Portfolio Composition as of December 31, 2018 (1) |
% of Net Assets | ||||
Common Stocks(4) | 99.5 | |||
Money Market Funds and Other Net Assets | 0.5 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Microsoft Corp. | 10.1 | ||||
2. | Apple, Inc. | 9.7 | ||||
3. | Amazon.com, Inc. | 9.5 | ||||
4. | Alphabet, Inc. Class C | 4.7 | ||||
5. | Alphabet, Inc. Class A | 4.1 | ||||
6. | Facebook, Inc. Class A | 4.1 | ||||
7. | Intel Corp. | 3.1 | ||||
8. | Cisco Systems, Inc. | 2.8 | ||||
9. | PepsiCo, Inc. | 2.3 | ||||
10. | Comcast Corp. Class A | 2.2 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Information Technology | 42.4 | |||
Communication Services | 22.4 | |||
Consumer Discretionary | 16.3 | |||
Health Care | 8.9 | |||
Consumer Staples | 6.4 | |||
Industrials | 2.4 | |||
Utilities | 0.4 | |||
Financials | 0.3 | |||
|
| |||
99.5 | ||||
|
|
72
Ohio National Fund, Inc. | ON Nasdaq-100® Index Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 99.5% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 22.4% |
| |||||||||||
Activision Blizzard, Inc. (Entertainment) | 35,888 | $ | 1,671,304 | |||||||||
Alphabet, Inc. Class A (Interactive Media & Svs.) | (a | ) | 13,021 | 13,606,424 | ||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 14,921 | 15,452,337 | ||||||||
Baidu, Inc. – ADR (Interactive Media & Svs.) | (a | ) | 13,204 | 2,094,154 | ||||||||
Charter Communications, Inc. Class A (Media) | (a | ) | 10,766 | 3,067,987 | ||||||||
Comcast Corp. Class A (Media) | 213,527 | 7,270,594 | ||||||||||
Electronic Arts, Inc. (Entertainment) | (a | ) | 14,210 | 1,121,311 | ||||||||
Facebook, Inc. Class A (Interactive Media & Svs.) | (a | ) | 102,742 | 13,468,449 | ||||||||
Liberty Global PLC Class A (Media) | (a | ) | 9,614 | 205,163 | ||||||||
Liberty Global PLC Class C (Media) | (a | ) | 25,318 | 522,563 | ||||||||
NetEase, Inc. – ADR (Entertainment) | 3,443 | 810,379 | ||||||||||
Netflix, Inc. (Entertainment) | (a | ) | 20,510 | 5,489,707 | ||||||||
Sirius XM Holdings, Inc. (Media) | 208,899 | 1,192,813 | ||||||||||
Take-Two Interactive Software, Inc. (Entertainment) | (a | ) | 5,356 | 551,347 | ||||||||
T-Mobile U.S., Inc. (Wireless Telecom. Svs.) | (a | ) | 39,901 | 2,538,103 | ||||||||
Twenty-First Century Fox, Inc. Class A (Entertainment) | 49,709 | 2,391,997 | ||||||||||
Twenty-First Century Fox, Inc. Class B (Entertainment) | 37,556 | 1,794,426 | ||||||||||
|
| |||||||||||
73,249,058 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 16.3% |
| |||||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | (a | ) | 20,720 | 31,120,818 | ||||||||
Booking Holdings, Inc. (Internet & Direct Marketing Retail) | (a | ) | 2,179 | 3,753,153 | ||||||||
Ctrip.com International Ltd. – ADR (Internet & Direct Marketing Retail) | (a | ) | 22,901 | 619,701 | ||||||||
Dollar Tree, Inc. (Multiline Retail) | (a | ) | 11,192 | 1,010,861 | ||||||||
eBay, Inc. (Internet & Direct Marketing Retail) | (a | ) | 45,284 | 1,271,122 | ||||||||
Expedia Group, Inc. (Internet & Direct Marketing Retail) | 6,405 | 721,523 | ||||||||||
Hasbro, Inc. (Leisure Products) | 5,950 | 483,438 | ||||||||||
JD.com, Inc. – ADR (Internet & Direct Marketing Retail) | (a | ) | 43,447 | 909,346 | ||||||||
Lululemon Athletica, Inc. (Textiles, Apparel & Luxury Goods) | (a | ) | 5,766 | 701,203 | ||||||||
Marriott International, Inc. Class A (Hotels, Restaurants & Leisure) | 16,044 | 1,741,737 | ||||||||||
MercadoLibre, Inc. (Internet & Direct Marketing Retail) | 2,126 | 622,599 | ||||||||||
O’Reilly Automotive, Inc. (Specialty Retail) | (a | ) | 3,767 | 1,297,091 | ||||||||
Ross Stores, Inc. (Specialty Retail) | 17,560 | 1,460,992 | ||||||||||
Starbucks Corp. (Hotels, Restaurants & Leisure) | 58,348 | 3,757,611 | ||||||||||
Tesla, Inc. (Automobiles) | (a | ) | 8,077 | 2,688,026 | ||||||||
Ulta Beauty, Inc. (Specialty Retail) | (a | ) | 2,811 | 688,245 | ||||||||
Wynn Resorts Ltd. (Hotels, Restaurants & Leisure) | 5,114 | 505,826 | ||||||||||
|
| |||||||||||
53,353,292 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 6.4% | ||||||||||||
Costco Wholesale Corp. (Food & Staples Retailing) | 20,610 | 4,198,463 | ||||||||||
Kraft Heinz Co. / The (Food Products) | 57,352 | 2,468,430 | ||||||||||
Mondelez International, Inc. Class A (Food Products) | 68,377 | 2,737,131 | ||||||||||
Monster Beverage Corp. (Beverages) | (a | ) | 26,007 | 1,280,065 | ||||||||
PepsiCo, Inc. (Beverages) | 67,142 | 7,417,848 | ||||||||||
Walgreens Boots Alliance, Inc. (Food & Staples Retailing) | 44,641 | 3,050,320 | ||||||||||
|
| |||||||||||
21,152,257 | ||||||||||||
|
| |||||||||||
FINANCIALS – 0.3% | ||||||||||||
Willis Towers Watson PLC (Insurance) | 6,111 | 928,016 | ||||||||||
|
|
Common Stocks (Continued) | Shares | Value | ||||||||||
HEALTH CARE – 8.9% | ||||||||||||
Alexion Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 10,493 | $ | 1,021,598 | |||||||
Align Technology, Inc. (Health Care Equip. & Supplies) | (a | ) | 3,762 | 787,876 | ||||||||
Amgen, Inc. (Biotechnology) | 29,970 | 5,834,260 | ||||||||||
Biogen, Inc. (Biotechnology) | (a | ) | 9,476 | 2,851,518 | ||||||||
BioMarin Pharmaceutical, Inc. (Biotechnology) | (a | ) | 8,375 | 713,131 | ||||||||
Celgene Corp. (Biotechnology) | (a | ) | 32,887 | 2,107,728 | ||||||||
Cerner Corp. (Health Care Technology) | (a | ) | 15,496 | 812,610 | ||||||||
Gilead Sciences, Inc. (Biotechnology) | 60,841 | 3,805,605 | ||||||||||
Henry Schein, Inc. (Health Care Providers & Svs.) | (a | ) | 7,169 | 562,910 | ||||||||
IDEXX Laboratories, Inc. (Health Care Equip. & Supplies) | (a | ) | 4,056 | 754,497 | ||||||||
Illumina, Inc. (Life Sciences Tools & Svs.) | (a | ) | 6,914 | 2,073,716 | ||||||||
Incyte Corp. (Biotechnology) | (a | ) | 10,009 | 636,472 | ||||||||
Intuitive Surgical, Inc. (Health Care Equip. & Supplies) | (a | ) | 5,371 | 2,572,279 | ||||||||
Mylan N.V. (Pharmaceuticals) | (a | ) | 24,251 | 664,477 | ||||||||
Regeneron Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 5,001 | 1,867,874 | ||||||||
Vertex Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 12,019 | 1,991,669 | ||||||||
|
| |||||||||||
29,058,220 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 2.4% | ||||||||||||
American Airlines Group, Inc. (Airlines) | 21,662 | 695,567 | ||||||||||
Cintas Corp. (Commercial Svs. & Supplies) | 5,028 | 844,654 | ||||||||||
CSX Corp. (Road & Rail) | 39,715 | 2,467,493 | ||||||||||
Fastenal Co. (Trading Companies & Distributors) | 13,501 | 705,967 | ||||||||||
J.B. Hunt Transport Services, Inc. (Road & Rail) | 5,135 | 477,760 | ||||||||||
PACCAR, Inc. (Machinery) | 16,435 | 939,096 | ||||||||||
United Continental Holdings, Inc. (Airlines) | (a | ) | 12,814 | 1,072,916 | ||||||||
Verisk Analytics, Inc. (Professional Svs.) | (a | ) | 7,742 | 844,188 | ||||||||
|
| |||||||||||
8,047,641 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 42.4% | ||||||||||||
Adobe Systems, Inc. (Software) | (a | ) | 22,958 | 5,194,018 | ||||||||
Advanced Micro Devices, Inc. (Semiconductors & Equip.) | (a | ) | 47,004 | 867,694 | ||||||||
Analog Devices, Inc. (Semiconductors & Equip.) | 17,409 | 1,494,214 | ||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 201,053 | 31,714,100 | ||||||||||
Applied Materials, Inc. (Semiconductors & Equip.) | 46,232 | 1,513,636 | ||||||||||
ASML Holding N.V. (Semiconductors & Equip.) | 3,191 | 496,583 | ||||||||||
Autodesk, Inc. (Software) | (a | ) | 10,282 | 1,322,368 | ||||||||
Automatic Data Processing, Inc. (IT Svs.) | 20,587 | 2,699,367 | ||||||||||
Broadcom, Inc. (Semiconductors & Equip.) | 19,445 | 4,944,475 | ||||||||||
Cadence Design Systems, Inc. (Software) | (a | ) | 13,270 | 576,980 | ||||||||
Check Point Software Technologies Ltd. (Software) | (a | ) | 7,347 | 754,170 | ||||||||
Cisco Systems, Inc. (Communications Equip.) | 211,175 | 9,150,213 | ||||||||||
Citrix Systems, Inc. (Software) | 6,338 | 649,391 | ||||||||||
Cognizant Technology Solutions Corp. Class A (IT Svs.) | 27,233 | 1,728,751 | ||||||||||
Fiserv, Inc. (IT Svs.) | (a | ) | 18,741 | 1,377,276 | ||||||||
Intel Corp. (Semiconductors & Equip.) | 214,529 | 10,067,846 | ||||||||||
Intuit, Inc. (Software) | 12,205 | 2,402,554 | ||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 7,199 | 644,239 | ||||||||||
Lam Research Corp. (Semiconductors & Equip.) | 7,299 | 993,905 | ||||||||||
Maxim Integrated Products, Inc. (Semiconductors & Equip.) | 13,031 | 662,626 | ||||||||||
Microchip Technology, Inc. (Semiconductors & Equip.) | 11,123 | 799,966 |
73 | (continued) |
Ohio National Fund, Inc. | ON Nasdaq-100® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INFORMATION TECHNOLOGY (continued) | ||||||||||||
Micron Technology, Inc. (Semiconductors & Equip.) | (a | ) | 53,346 | $ | 1,692,669 | |||||||
Microsoft Corp. (Software) | 325,215 | 33,032,088 | ||||||||||
NetApp, Inc. (Tech. Hardware, Storage & Periph.) | 11,847 | 706,910 | ||||||||||
NVIDIA Corp. (Semiconductors & Equip.) | 28,689 | 3,829,981 | ||||||||||
NXP Semiconductors N.V. (Semiconductors & Equip.) | 15,459 | 1,132,836 | ||||||||||
Paychex, Inc. (IT Svs.) | 16,888 | 1,100,253 | ||||||||||
PayPal Holdings, Inc. (IT Svs.) | (a | ) | 55,420 | 4,660,268 | ||||||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 57,010 | 3,244,439 | ||||||||||
Skyworks Solutions, Inc. (Semiconductors & Equip.) | 8,350 | 559,617 | ||||||||||
Symantec Corp. (Software) | 30,048 | 567,757 | ||||||||||
Synopsys, Inc. (Software) | (a | ) | 6,988 | 588,669 | ||||||||
Texas Instruments, Inc. (Semiconductors & Equip.) | 45,176 | 4,269,132 | ||||||||||
VeriSign, Inc. (IT Svs.) | (a | ) | 5,686 | 843,177 | ||||||||
Western Digital Corp. (Tech. Hardware, Storage & Periph.) | 13,612 | 503,236 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INFORMATION TECHNOLOGY (continued) | ||||||||||||
Workday, Inc. Class A (Software) | (a | ) | 7,008 | $ | 1,119,037 | |||||||
Xilinx, Inc. (Semiconductors & Equip.) | 11,901 | 1,013,608 | ||||||||||
|
| |||||||||||
138,918,049 | ||||||||||||
|
| |||||||||||
UTILITIES – 0.4% | ||||||||||||
Xcel Energy, Inc. (Electric Utilities) | 24,175 | 1,191,102 | ||||||||||
|
| |||||||||||
Total Common Stocks (Cost $282,133,027) | $ | 325,897,635 | ||||||||||
|
| |||||||||||
Money Market Funds – 0.2% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 653,392 | $ | 653,327 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $653,327) | $ | 653,327 | ||||||||||
|
| |||||||||||
Total Investments – 99.7% (Cost $282,786,354) | (c | ) | $ | 326,550,962 | ||||||||
Other Assets in Excess of Liabilities – 0.3% | (d | ) | 1,031,220 | |||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 327,582,182 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Rate represents the seven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
(d) | Includes $60,800 of cash pledged as collateral for the futures contracts outstanding at December 31, 2018. See also the following Schedule of Open Futures Contracts. |
The accompanying notes are an integral part of these financial statements.
Schedule of Open Futures Contracts | December 31, 2018 |
Description | Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable (Payable) | ||||||
CME E-mini Nasdaq-100 Index - Long | 8 | March 15, 2019 | $1,006,669 | $1,013,320 | $6,651 | $265,541 |
The accompanying notes are an integral part of these financial statements.
74
Ohio National Fund, Inc. | ON Bristol Portfolio (Unaudited) |
Objective/Strategy |
The ON Bristol Portfolio (formerly the Bristol Portfolio) seeks long-term growth of capital by investing primarily in common stocks of the 1,000 largest publicly traded U.S. companies in terms of market capitalization.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -17.97 | % | ||
Five years | 6.46 | % | ||
Ten years | 12.04 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.82% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Bristol Portfolio returned -17.97% versus -4.38% for its benchmark, the S&P 500 Index.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Stock selection was the primary detractor. Specifically, stock selection in Information Technology, Health Care, and Consumer Discretionary was the primary driver of relative underperformance for the year.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A. Top contributors included Amazon.com, Inc. (“Amazon”), Xilinx, Inc. (“Xilinx”) and The Boeing Co. (“Boeing”). Amazon had several significant accomplishments in 2018 – it successfully executed the launch of its new GO checkout-less store concept, re-accelerated growth in its public cloud computing business (Amazon Web Services), and significantly exceeded profit expectations, as investments in past years to optimize costs yielded positive results. Xilinx beat its revenue growth outlook significantly, due to earlier 5G wireless network buildouts, as well as a gain in market share from Intel Corp. for data-center acceleration opportunities. Despite well-known supplier issues, Boeing significantly exceeded its free cash flow outlook for the year. Additionally, the company made progress in executing its long-term growth strategy, via acquisitions and contract wins.(1)
Top detractors included Evoqua Water Technologies Corp. The company missed earnings twice. Initially, it was thought to be a one-time event, but the second miss was driven by significantly higher costs and a revenue shortfall. The company’s highly leveraged balance sheet was also a driver for underperformance. With Sage Therapeutics, Inc. (“Sage”), another top detractor, the Food and Drug Administration delayed its approval decision for Sage’s post-partum-depression drug to early 2019 in order to allow Sage to complete the development of a safety program for the drug. PVH Corp. missed profit expectations in its Calvin Klein division due to weaker demand for its new jeans and fashion designs.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P 500 Index is a capitalization-weighted index designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
75 | (continued) |
Ohio National Fund, Inc. | ON Bristol Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 95.6 | |||
Master Limited Partnerships(4) | 2.2 | |||
Money Market Funds and Other Net Assets | 2.2 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Microsoft Corp. | 3.7 | ||||
2. | Alphabet, Inc. Class C | 3.4 | ||||
3. | Marvell Technology Group Ltd. | 2.9 | ||||
4. | Bank of America Corp. | 2.8 | ||||
5. | Citigroup, Inc. | 2.4 | ||||
6. | Hartford Financial Services Group, Inc. / The | 2.3 | ||||
7. | Amazon.com, Inc. | 2.3 | ||||
8. | KLA-Tencor Corp. | 2.2 | ||||
9. | Applied Materials, Inc. | 2.2 | ||||
10. | Blackstone Group LP / The | 2.2 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Master Limited Partnerships): |
% of Net Assets | ||||
Industrials | 19.9 | |||
Information Technology | 19.2 | |||
Consumer Discretionary | 18.9 | |||
Financials | 15.5 | |||
Communication Services | 9.5 | |||
Health Care | 7.7 | |||
Consumer Staples | 3.4 | |||
Materials | 1.9 | |||
Energy | 1.8 | |||
|
| |||
97.8 | ||||
|
|
76
Ohio National Fund, Inc. | ON Bristol Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 95.6% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 9.5% |
| |||||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 5,138 | $ | 5,320,964 | |||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 112,712 | 3,216,800 | ||||||||||
Lions Gate Entertainment Corp. Class A (Entertainment) | 186,965 | 3,010,137 | ||||||||||
Walt Disney Co. / The (Entertainment) | 30,068 | 3,296,956 | ||||||||||
|
| |||||||||||
14,844,857 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 18.9% | ||||||||||||
Alibaba Group Holding Ltd. – ADR (Internet & Direct Marketing Retail) | (a | ) | 22,313 | 3,058,443 | ||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | (a | ) | 2,330 | 3,499,590 | ||||||||
General Motors Co. (Automobiles) | 85,929 | 2,874,325 | ||||||||||
Lowe’s Cos., Inc. (Specialty Retail) | 31,982 | 2,953,857 | ||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 102,333 | 2,482,599 | ||||||||||
Norwegian Cruise Line Holdings Ltd. (Hotels, Restaurants & Leisure) | (a | ) | 67,481 | 2,860,520 | ||||||||
PVH Corp. (Textiles, Apparel & Luxury Goods) | 31,498 | 2,927,739 | ||||||||||
Royal Caribbean Cruises Ltd. (Hotels, Restaurants & Leisure) | 31,253 | 3,056,231 | ||||||||||
Tapestry, Inc. (Textiles, Apparel & Luxury Goods) | 83,940 | 2,832,975 | ||||||||||
Tiffany & Co. (Specialty Retail) | 35,618 | 2,867,605 | ||||||||||
|
| |||||||||||
29,413,884 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 3.4% | ||||||||||||
Coca-Cola Co. / The (Beverages) | 28,236 | 1,336,975 | ||||||||||
Conagra Brands, Inc. (Food Products) | 39,892 | 852,093 | ||||||||||
PepsiCo, Inc. (Beverages) | 27,800 | 3,071,344 | ||||||||||
|
| |||||||||||
5,260,412 | ||||||||||||
|
| |||||||||||
ENERGY – 1.8% | ||||||||||||
Pioneer Natural Resources Co. (Oil, Gas & Consumable Fuels) | 21,571 | 2,837,018 | ||||||||||
�� |
|
| ||||||||||
FINANCIALS – 13.3% | ||||||||||||
Bank of America Corp. (Banks) | 175,836 | 4,332,599 | ||||||||||
Citigroup, Inc. (Banks) | 70,709 | 3,681,111 | ||||||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 15,969 | 2,667,621 | ||||||||||
Hartford Financial Services Group, Inc. / The (Insurance) | 81,789 | 3,635,521 | ||||||||||
JPMorgan Chase & Co. (Banks) | 34,084 | 3,327,280 | ||||||||||
Lincoln National Corp. (Insurance) | 58,006 | 2,976,288 | ||||||||||
|
| |||||||||||
20,620,420 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 7.7% | ||||||||||||
Aerie Pharmaceuticals, Inc. (Pharmaceuticals) | (a | ) | 69,877 | 2,522,560 | ||||||||
Celgene Corp. (Biotechnology) | (a | ) | 49,294 | 3,159,252 | ||||||||
Sage Therapeutics, Inc. (Biotechnology) | (a | ) | 33,616 | 3,220,077 | ||||||||
Thermo Fisher Scientific, Inc. (Life Sciences Tools & Svs.) | 13,552 | 3,032,802 | ||||||||||
|
| |||||||||||
11,934,691 | ||||||||||||
|
|
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS – 19.9% | ||||||||||||
AECOM (Construction & Engineering) | (a | ) | 112,456 | $ | 2,980,084 | |||||||
Boeing Co. / The (Aerospace & Defense) | 9,527 | 3,072,457 | ||||||||||
Caterpillar, Inc. (Machinery) | 9,058 | 1,151,000 | ||||||||||
Deere & Co. (Machinery) | 21,704 | 3,237,586 | ||||||||||
Delta Air Lines, Inc. (Airlines) | 58,946 | 2,941,405 | ||||||||||
FedEx Corp. (Air Freight & Logistics) | 17,018 | 2,745,514 | ||||||||||
Lockheed Martin Corp. (Aerospace & Defense) | 11,473 | 3,004,090 | ||||||||||
Quanta Services, Inc. (Construction & Engineering) | 99,846 | 3,005,365 | ||||||||||
Raytheon Co. (Aerospace & Defense) | 18,823 | 2,886,507 | ||||||||||
Rockwell Automation, Inc. (Electrical Equip.) | 20,310 | 3,056,249 | ||||||||||
XPO Logistics, Inc. (Air Freight & Logistics) | (a | ) | 49,496 | 2,823,252 | ||||||||
|
| |||||||||||
30,903,509 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 19.2% |
| |||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 18,940 | 2,987,595 | ||||||||||
Applied Materials, Inc. (Semiconductors & Equip.) | 105,005 | 3,437,864 | ||||||||||
Broadcom, Inc. (Semiconductors & Equip.) | 7,400 | 1,881,672 | ||||||||||
DXC Technology Co. (IT Svs.) | 57,087 | 3,035,316 | ||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 38,615 | 3,455,656 | ||||||||||
Marvell Technology Group Ltd. (Semiconductors & Equip.) | 280,180 | 4,536,114 | ||||||||||
Microchip Technology, Inc. (Semiconductors & Equip.) | 23,230 | 1,670,702 | ||||||||||
Microsoft Corp. (Software) | �� | 56,316 | 5,720,016 | |||||||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 53,446 | 3,041,612 | ||||||||||
|
| |||||||||||
29,766,547 | ||||||||||||
|
| |||||||||||
MATERIALS – 1.9% | ||||||||||||
FMC Corp. (Chemicals) | 40,579 | 3,001,223 | ||||||||||
|
| |||||||||||
Total Common Stocks (Cost $172,374,200) | $ | 148,582,561 | ||||||||||
|
| |||||||||||
Master Limited Partnerships – 2.2% | Shares | Value | ||||||||||
FINANCIALS – 2.2% | ||||||||||||
Blackstone Group LP / The (Capital Markets) | 113,855 | $ | 3,394,017 | |||||||||
|
| |||||||||||
Total Master Limited Partnerships (Cost $3,954,956) | $ | 3,394,017 | ||||||||||
|
| |||||||||||
Money Market Funds – 0.1% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 74,792 | $ | 74,785 | |||||||
|
| |||||||||||
Total Money Market Funds (Cost $74,785) | $ | 74,785 | ||||||||||
|
| |||||||||||
Total Investments – 97.9% (Cost $176,403,941) | (c | ) | $ | 152,051,363 | ||||||||
Other Assets in Excess of Liabilities – 2.1% | 3,293,253 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 155,344,616 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: American Depositary Receipts
Footnotes:
(a) | Non-income producing security. |
(b) | Rate represents the seven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
77
Ohio National Fund, Inc. | ON Bryton Growth Portfolio (Unaudited) |
Objective/Strategy |
The ON Bryton Growth Portfolio (formerly the Bryton Growth Portfolio) seeks long-term growth of capital by investing primarily in common stocks of growth-oriented U.S. companies smaller than the 500 largest publicly traded U.S. companies in terms of market capitalization.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -5.18 | % | ||
Five years | 4.14 | % | ||
Ten years | 11.35 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.98% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Bryton Growth Portfolio returned -5.18% versus -9.31% for its benchmark, the Russell 2000 Growth Index.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Both sector allocation and security selection factored into the Portfolio’s relative outperformance. Stock selections in Information Technology and Health Care contributed to relative performance, while top detractors were stock selections within Materials and Financials. A significant overweight to Information Technology was the key sector allocation contributor.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Top contributors included Tandem Diabetes Care, Inc., as the company exceeded expectations through the year on revenue, as new diabetes pump product launches and the exit of key competitors in their end market enabled the company to beat and raise estimates several times during the year. Loxo Oncology, Inc. had strong data updates through the year on its drug, LOXO-292, which enabled the company to maintain its leadership position versus competitors. Data from one of its key competitors, Blueprint Medicines Corporation, was less impressive. Coupa Software, Inc. had strong quarterly earnings reports through the year, in which the company beat estimates on all key metrics (revenue, bookings and operating income).(1)
Top detractors included Asure Software, Inc., as a weak third quarter earnings report and materially lower guidance caused the stock to significantly underperform the market. Weak organic revenue growth and gross margins, combined with negative cash flow, created additional concerns that the company would do an equity raise or debt expansion to complete additional acquisitions. Evoqua Water Technologies Corp. missed earnings twice. Initially, it was thought to be a one-time event, but the second miss was driven by significantly higher costs and a revenue shortfall. The company’s highly leveraged balance sheet was also a driver for underperformance. electroCore, Inc. had a headline miss on revenue and earnings in a “risk off” market that contributed to its sharp sell-off, despite the fact that the company continued to successfully ramp up reimbursements for its newly launched product.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes the Russell 2000 Index companies with higher price-to-value ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable U.S. equity market. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
78 | (continued) |
Ohio National Fund, Inc. | ON Bryton Growth Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 89.7 | |||
Other Net Assets | 10.3 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Five9, Inc. | 1.7 | ||||
2. | Covanta Holding Corp. | 1.7 | ||||
3. | MGP Ingredients, Inc. | 1.7 | ||||
4. | ORBCOMM, Inc. | 1.7 | ||||
5. | Mueller Water Products, Inc. Class A | 1.6 | ||||
6. | Cubic Corp. | 1.6 | ||||
7. | Vonage Holdings Corp. | 1.6 | ||||
8. | Allegheny Technologies, Inc. | 1.6 | ||||
9. | Haemonetics Corp. | 1.6 | ||||
10. | Aerie Pharmaceuticals, Inc. | 1.6 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Information Technology | 28.6 | |||
Industrials | 21.4 | |||
Health Care | 15.3 | |||
Materials | 6.8 | |||
Communication Services | 4.8 | |||
Financials | 4.1 | |||
Consumer Staples | 3.9 | |||
Consumer Discretionary | 3.3 | |||
Real Estate | 1.5 | |||
|
| |||
89.7 | ||||
|
|
79
Ohio National Fund, Inc. | ON Bryton Growth Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 89.7% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 4.8% | ||||||||||||
ORBCOMM, Inc. (Diversified Telecom. Svs.) | (a | ) | 50,734 | $ | 419,063 | |||||||
QuinStreet, Inc. (Interactive Media & Svs.) | (a | ) | 24,992 | 405,620 | ||||||||
Vonage Holdings Corp. (Diversified Telecom. Svs.) | (a | ) | 47,155 | 411,663 | ||||||||
|
| |||||||||||
1,236,346 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 3.3% | ||||||||||||
American Eagle Outfitters, Inc. (Specialty Retail) | 14,404 | 278,429 | ||||||||||
At Home Group, Inc. (Specialty Retail) | (a | ) | 13,782 | 257,172 | ||||||||
G-III Apparel Group Ltd. (Textiles, Apparel & Luxury Goods) | (a | ) | 11,121 | 310,165 | ||||||||
|
| |||||||||||
845,766 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 3.9% | ||||||||||||
J&J Snack Foods Corp. (Food Products) | 2,184 | 315,785 | ||||||||||
MGP Ingredients, Inc. (Beverages) | 7,441 | 424,509 | ||||||||||
Nomad Foods Ltd. (Food Products) | (a | ) | 14,988 | 250,599 | ||||||||
|
| |||||||||||
990,893 | ||||||||||||
|
| |||||||||||
FINANCIALS – 4.1% | ||||||||||||
Ameris Bancorp (Banks) | 11,823 | 374,434 | ||||||||||
Home BancShares, Inc. (Banks) | 22,617 | 369,562 | ||||||||||
Veritex Holdings, Inc. (Banks) | (a | ) | 13,937 | 297,973 | ||||||||
|
| |||||||||||
1,041,969 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 15.3% | ||||||||||||
Aerie Pharmaceuticals, Inc. (Pharmaceuticals) | (a | ) | 11,243 | 405,872 | ||||||||
AxoGen, Inc. (Health Care Equip. & Supplies) | (a | ) | 14,879 | 303,978 | ||||||||
ElectroCore, Inc. (Health Care Equip. & Supplies) | (a | ) | 40,972 | 256,485 | ||||||||
Haemonetics Corp. (Health Care Equip. & Supplies) | (a | ) | 4,077 | 407,904 | ||||||||
Ligand Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 2,704 | 366,933 | ||||||||
Neogen Corp. (Health Care Equip. & Supplies) | (a | ) | 5,250 | 299,250 | ||||||||
PetIQ, Inc. (Health Care Providers & Svs.) | (a | ) | 14,308 | 335,809 | ||||||||
Sage Therapeutics, Inc. (Biotechnology) | (a | ) | 3,987 | 381,915 | ||||||||
Tandem Diabetes Care, Inc. (Health Care Equip. & Supplies) | (a | ) | 10,272 | 390,028 | ||||||||
Vericel Corp. (Biotechnology) | (a | ) | 21,261 | 369,941 | ||||||||
Vocera Communications, Inc. (Health Care Technology) | (a | ) | 9,555 | 375,989 | ||||||||
|
| |||||||||||
3,894,104 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 21.4% | ||||||||||||
Actuant Corp. Class A (Machinery) | 15,561 | 326,625 | ||||||||||
ASGN, Inc. (Professional Svs.) | (a | ) | 5,733 | 312,448 | ||||||||
Astec Industries, Inc. (Machinery) | 12,908 | 389,693 | ||||||||||
Axon Enterprise, Inc. (Aerospace & Defense) | (a | ) | 9,054 | 396,112 | ||||||||
Casella Waste Systems, Inc. Class A (Commercial Svs. & Supplies) | (a | ) | 13,661 | 389,202 | ||||||||
Chart Industries, Inc. (Machinery) | (a | ) | 5,842 | 379,905 | ||||||||
Covanta Holding Corp. (Commercial Svs. & Supplies) | 32,061 | 430,259 | ||||||||||
Cubic Corp. (Aerospace & Defense) | 7,689 | 413,207 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS (continued) | ||||||||||||
John Bean Technologies Corp. (Machinery) | 4,659 | $ | 334,563 | |||||||||
Kratos Defense & Security Solutions, Inc. (Aerospace & Defense) | (a | ) | 21,386 | 301,329 | ||||||||
Lindsay Corp. (Machinery) | 2,679 | 257,854 | ||||||||||
Mueller Water Products, Inc. Class A (Machinery) | 45,657 | 415,479 | ||||||||||
Proto Labs, Inc. (Machinery) | (a | ) | 3,386 | 381,907 | ||||||||
Spartan Motors, Inc. (Machinery) | 47,089 | 340,453 | ||||||||||
TPI Composites, Inc. (Electrical Equip.) | (a | ) | 15,191 | 373,395 | ||||||||
|
| |||||||||||
5,442,431 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 28.6% | ||||||||||||
Carbonite, Inc. (IT Svs.) | (a | ) | 14,803 | 373,924 | ||||||||
Cloudera, Inc. (Software) | (a | ) | 30,420 | 336,445 | ||||||||
CommVault Systems, Inc. (Software) | (a | ) | 6,465 | 382,017 | ||||||||
Coupa Software, Inc. (Software) | (a | ) | 5,114 | 321,466 | ||||||||
Cray, Inc. (Tech. Hardware, Storage & Periph.) | (a | ) | 16,560 | 357,530 | ||||||||
eGain Corp. (Software) | (a | ) | 58,906 | 387,012 | ||||||||
Evo Payments, Inc. Class A (IT Svs.) | (a | ) | 12,729 | 314,025 | ||||||||
FARO Technologies, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 7,057 | 286,797 | ||||||||
Five9, Inc. (Software) | (a | ) | 9,967 | 435,757 | ||||||||
Itron, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 7,047 | 333,253 | ||||||||
LivePerson, Inc. (Software) | (a | ) | 21,025 | 396,532 | ||||||||
Power Integrations, Inc. (Semiconductors & Equip.) | 6,291 | 383,625 | ||||||||||
Q2 Holdings, Inc. (Software) | (a | ) | 6,204 | 307,408 | ||||||||
Radware Ltd. (Communications Equip.) | (a | ) | 16,604 | 377,077 | ||||||||
Rapid7, Inc. (Software) | (a | ) | 12,331 | 384,234 | ||||||||
Semtech Corp. (Semiconductors & Equip.) | (a | ) | 8,420 | 386,225 | ||||||||
Silicon Motion Technology Corp. – ADR (Semiconductors & Equip.) | 11,612 | 400,614 | ||||||||||
Tenable Holdings, Inc. (Software) | (a | ) | 16,185 | 359,145 | ||||||||
Ultra Clean Holdings, Inc. (Semiconductors & Equip.) | (a | ) | 45,005 | 381,192 | ||||||||
Viavi Solutions, Inc. (Communications Equip.) | (a | ) | 38,187 | 383,779 | ||||||||
|
| |||||||||||
7,288,057 | ||||||||||||
|
| |||||||||||
MATERIALS – 6.8% | ||||||||||||
Allegheny Technologies, Inc. (Metals & Mining) | (a | ) | 18,837 | 410,082 | ||||||||
Ferro Corp. (Chemicals) | (a | ) | 15,975 | 250,488 | ||||||||
PolyOne Corp. (Chemicals) | 13,477 | 385,442 | ||||||||||
Sensient Technologies Corp. (Chemicals) | 6,727 | 375,703 | ||||||||||
Summit Materials, Inc. Class A (Construction Materials) | (a | ) | 25,145 | 311,798 | ||||||||
|
| |||||||||||
1,733,513 | ||||||||||||
|
| |||||||||||
REAL ESTATE – 1.5% | ||||||||||||
Terreno Realty Corp. (Equity REIT) | 10,657 | 374,807 | ||||||||||
|
| |||||||||||
Total Common Stocks (Cost $26,849,022) | $ | 22,847,886 | ||||||||||
|
| |||||||||||
Total Investments – 89.7% (Cost $26,849,022) | (b | ) | $ | 22,847,886 | ||||||||
Other Assets in Excess of Liabilities – 10.3% | 2,614,079 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 25,461,965 | ||||||||||
|
|
Percentages | are stated as a percent of net assets. |
Abbreviations: |
ADR: American Depositary Receipts
Footnotes: |
(a) | Non-income producing security. |
(b) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
80
Ohio National Fund, Inc. | ON ICON Balanced Portfolio (Unaudited) |
Objective/Strategy |
The ON ICON Balanced Portfolio (formerly the Balanced Portfolio) seeks capital appreciation and income by investing, under normal circumstances, up to 75% of its assets in equity securities of domestic companies of any market capitalization while maintaining a minimum of 25% of its assets in fixed income securities.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -10.58 | % | ||
Five years | 2.21 | % | ||
Ten years | 7.21 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.75% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON ICON Balanced Portfolio returned -10.58% versus –4.96% for its benchmark, the S&P Composite 1500 Index. The Portfolio’s secondary benchmark, which is comprised of 60% S&P Composite 1500 Index and 40% Bloomberg Barclays U.S. Universal Index, returned -2.81% for the period.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.Overall, the Portfolio’s allocation to fixed income securities was a benefit to performance relative to the all-equity S&P 1500 benchmark. In early 2018, ICON’s calculation of the broad market’s fair value increased to a level which led us to adjust the Portfolio’s equity/fixed income allocation toward more equity securities. As the market declined in the last quarter of the year, both the increased allocation to equities, and the Portfolio’s equity holdings’ underperformance relative to the benchmark detracted from the overall performance of the Portfolio.
The Portfolio’s fixed income volatility remained relatively low. The Portfolio’s use of closed end funds was rewarded, as several of the positions converted to open-end funds or liquidated, capturing the discount to net asset value at which they had been acquired. The Portfolio’s underweight position in U.S. Treasury Notes hurt performance, as interest rates fell and credit spreads widened. The Portfolio’s preferred stock holdings, in general, were negatively impacted by spread widening. Given the Portfolio’s positioning, we tend to expect underperformance when rates fall aggressively and relative outperformance when rates rise.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.The two biggest equity sector detractors from relative performance were the Portfolio’s stock selection in the Energy and Consumer Discretionary sectors. Overall, sector allocation contributed to relative performance.(1)
In the fixed income portion of the Portfolio, we continued our focus on high-coupon yield to call corporate securities and closed end fund event-driven arbitrage. Our short duration and credit risk focus negatively impacted returns, as U.S. Treasury Notes outperformed.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The three biggest individual stock contributors to performance were XL Group Ltd. (“XL”), HCA Healthcare, Inc. (“HCA”), and Mastercard, Inc. Class A (“Mastercard”). Shares of XL responded positively to an announced merger with AXA SA. Both HCA and Mastercard experienced a similar trend of strong earnings growth momentum during the first three quarters of the year and minimal participation during the end-of-year downturn.
The three biggest detractors on an individual stock basis were Cimarex Energy Co. (“Cimarex”), LogMeIn, Inc. (“LogMeIn”), and CDK Global, Inc. (“CDK Global”). Cimarex was negatively affected by the sharp decline in oil prices, due to concerns of supply conditions and an overall slowdown of global economic growth. Shares of LogMeIn fell sharply after reporting poor second quarter earnings and reducing their full-year guidance. CDK Global experienced significant declines due to disappointing results.(1)
The positive performance of the fixed income sleeve contributed to returns, as a whole, as the benchmark had no allocation to fixed income, and fixed income was an overall positive returning asset class for the Portfolio.(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.The Portfolio purchased put options on the S&P 500 Index throughout most of the year in an effort to dampen the effects of market declines. The Portfolio did not hold any put options from early October through the end of the year. Over the full year, the purchase of put options detracted 12 basis points.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
81 | (continued) |
Ohio National Fund, Inc. | ON ICON Balanced Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P Composite 1500 Index is a broad-based capitalization-weighted index of 1500 U.S. companies and is comprised of the S&P MidCap 400, S&P 500, and the S&P SmallCap 600. It is designed for investors seeking to replicate to the performance of the U.S. equity market or benchmark against a representative universe of tradable stocks. The index presented includes the effects of reinvested dividends.
The Bloomberg Barclays U.S. Universal Index represents the union of the U.S. Aggregate Index, U.S. Corporate High Yield Index. Investment Grade 144A Index, Eurodollar Index, U.S. Emerging Markets Index, and the non-ERISA portion of the Commercial Mortgage-Backed Securities (CMBS) Index. The index covers USD-denominated, taxable bonds that are rated either investment grade or high-yield.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 67.2 | |||
Corporate Bonds(4) | 18.9 | |||
Closed-End Mutual Funds | 3.8 | |||
U.S. Treasury Obligations | 2.4 | |||
Preferred Securities(4) | 2.1 | |||
Asset-Backed Securities(4) | 1.4 | |||
Money Market Funds and Other Net Assets | 4.2 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||||
1. | Mastercard, Inc. Class A | 3.1 | ||||||
2. | Monolithic Power Systems, Inc. | 2.8 | ||||||
3. | Adobe Systems, Inc. | 2.7 | ||||||
4. | Visa, Inc. | 2.6 | ||||||
5. | JPMorgan Chase & Co. | 2.5 | ||||||
6. | Thermo Fisher Scientific, Inc. | 2.3 | ||||||
7. | Bank of America Corp. | 2.3 | ||||||
8. | NIKE, Inc. Class B | 2.1 | ||||||
9. | eBay, Inc. | 1.9 | ||||||
10. | U.S. Treasury Note | 1.9 | ||||||
2.500%, 12/31/2020 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Corporate Bonds, Preferred Securities, Asset-Backed Securities): |
% of Net Assets | ||||
Health Care | 18.2 | |||
Information Technology | 16.7 | |||
Financials | 16.2 | |||
Consumer Discretionary | 16.2 | |||
Energy | 6.7 | |||
Industrials | 5.9 | |||
Communication Services | 4.3 | |||
Materials | 2.1 | |||
Real Estate | 1.6 | |||
Consumer Staples | 1.2 | |||
Utilities | 0.5 | |||
|
| |||
89.6 | ||||
|
|
82
Ohio National Fund, Inc. | ON ICON Balanced Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 67.2% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 2.8% | ||||||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 4,386 | $ | 4,542,185 | |||||||
Electronic Arts, Inc. (Entertainment) | (a | ) | 54,055 | 4,265,480 | ||||||||
Facebook, Inc. Class A (Interactive Media & Svs.) | (a | ) | 33,254 | 4,359,267 | ||||||||
|
| |||||||||||
13,166,932 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 13.0% | ||||||||||||
AutoZone, Inc. (Specialty Retail) | (a | ) | 5,302 | 4,444,879 | ||||||||
Brunswick Corp. (Leisure Products) | 147,713 | 6,861,269 | ||||||||||
D.R. Horton, Inc. (Household Durables) | 138,020 | 4,783,773 | ||||||||||
eBay, Inc. (Internet & Direct Marketing Retail) | (a | ) | 325,000 | 9,122,750 | ||||||||
Lowe’s Cos., Inc. (Specialty Retail) | 85,629 | 7,908,694 | ||||||||||
NIKE, Inc. Class B (Textiles, Apparel & Luxury Goods) | 130,000 | 9,638,200 | ||||||||||
Polaris Industries, Inc. (Leisure Products) | 65,382 | 5,013,492 | ||||||||||
PulteGroup, Inc. (Household Durables) | 219,915 | 5,715,591 | ||||||||||
Royal Caribbean Cruises Ltd. (Hotels, Restaurants & Leisure) | 74,464 | 7,281,834 | ||||||||||
|
| |||||||||||
60,770,482 | ||||||||||||
|
| |||||||||||
ENERGY – 4.8% | ||||||||||||
Cimarex Energy Co. (Oil, Gas & Consumable Fuels) | 68,171 | 4,202,742 | ||||||||||
Diamondback Energy, Inc. (Oil, Gas & Consumable Fuels) | 61,404 | 5,692,151 | ||||||||||
Marathon Petroleum Corp. (Oil, Gas & Consumable Fuels) | 85,352 | 5,036,622 | ||||||||||
Parsley Energy, Inc. Class A (Oil, Gas & Consumable Fuels) | (a | ) | 239,508 | 3,827,338 | ||||||||
SRC Energy, Inc. (Oil, Gas & Consumable Fuels) | (a | ) | 772,526 | 3,630,872 | ||||||||
|
| |||||||||||
22,389,725 | ||||||||||||
|
| |||||||||||
FINANCIALS – 9.8% | ||||||||||||
Bank of America Corp. (Banks) | 431,610 | 10,634,870 | ||||||||||
JPMorgan Chase & Co. (Banks) | 117,804 | 11,500,027 | ||||||||||
KeyCorp (Banks) | 297,895 | 4,402,888 | ||||||||||
Lincoln National Corp. (Insurance) | 62,352 | 3,199,281 | ||||||||||
Signature Bank (Banks) | 76,139 | 7,827,851 | ||||||||||
SVB Financial Group (Banks) | (a | ) | 43,537 | 8,268,547 | ||||||||
|
| |||||||||||
45,833,464 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 15.4% | ||||||||||||
AbbVie, Inc. (Biotechnology) | 63,768 | 5,878,772 | ||||||||||
Celgene Corp. (Biotechnology) | (a | ) | 76,673 | 4,913,973 | ||||||||
Cigna Corp. (Health Care Providers & Svs.) | 45,891 | 8,715,619 | ||||||||||
HCA Healthcare, Inc. (Health Care Providers & Svs.) | 49,881 | 6,207,690 | ||||||||||
Jazz Pharmaceuticals PLC (Pharmaceuticals) | (a | ) | 61,044 | 7,567,014 | ||||||||
Ligand Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 29,516 | 4,005,321 | ||||||||
PerkinElmer, Inc. (Life Sciences Tools & Svs.) | 90,266 | 7,090,394 | ||||||||||
PRA Health Sciences, Inc. (Life Sciences Tools & Svs.) | (a | ) | 90,958 | 8,364,498 | ||||||||
Teleflex, Inc. (Health Care Equip. & Supplies) | 31,241 | 8,075,174 | ||||||||||
Thermo Fisher Scientific, Inc. (Life Sciences Tools & Svs.) | 47,910 | 10,721,779 | ||||||||||
|
| |||||||||||
71,540,234 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 4.9% | ||||||||||||
Air Lease Corp. (Trading Companies & Distributors) | 99,448 | 3,004,324 | ||||||||||
Canadian Pacific Railway Ltd. (Road & Rail) | 35,264 | 6,263,592 | ||||||||||
Masco Corp. (Building Products) | 160,779 | 4,701,178 | ||||||||||
Union Pacific Corp. (Road & Rail) | 63,320 | 8,752,723 | ||||||||||
|
| |||||||||||
22,721,817 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 15.2% | ||||||||||||
Adobe Systems, Inc. (Software) | (a | ) | 55,552 | 12,568,084 | ||||||||
CDK Global, Inc. (Software) | 148,752 | 7,122,246 | ||||||||||
LogMeIn, Inc. (Software) | 58,193 | 4,746,803 | ||||||||||
Mastercard, Inc. Class A (IT Svs.) | 76,152 | 14,366,075 | ||||||||||
Monolithic Power Systems, Inc. (Semiconductors & Equip.) | 112,730 | 13,104,863 | ||||||||||
Skyworks Solutions, Inc. (Semiconductors & Equip.) | 103,262 | 6,920,619 | ||||||||||
Visa, Inc. (IT Svs.) | 92,613 | 12,219,359 | ||||||||||
|
| |||||||||||
71,048,049 | ||||||||||||
|
| |||||||||||
MATERIALS – 1.3% | ||||||||||||
Eagle Materials, Inc. (Construction Materials) | 62,138 | 3,792,282 | ||||||||||
Graphic Packaging Holding Co. (Containers & Packaging) | 216,477 | 2,303,315 | ||||||||||
|
| |||||||||||
6,095,597 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $326,962,692) | $ | 313,566,300 | ||||||||||
|
|
Corporate Bonds – 18.9% | Rate | Maturity | Face Amount | Value | ||||||||||||||
COMMUNICATION SERVICES – 1.5% | ||||||||||||||||||
CSC Holdings LLC (Media) | (b) | 10.125 | % | 01/15/2023 | $ 3,300,000 | $3, 550,008 | ||||||||||||
CSC Holdings LLC (Media) | (b) | 10.875 | % | 10/15/2025 | 1,450,000 | 1,628,234 | ||||||||||||
Lee Enterprises, Inc. (Media) | (b) | 9.500 | % | 03/15/2022 | 1,930,000 | 1,968,600 | ||||||||||||
|
| |||||||||||||||||
7,146,842 | ||||||||||||||||||
|
|
83 | (continued) |
Ohio National Fund, Inc. | ON ICON Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||
CONSUMER DISCRETIONARY – 3.2% | ||||||||||||||||||
Brookfield Residential Properties, Inc. (Household Durables) | (b) | 6.500% | 12/15/2020 | $ 2,400,000 | $ | 2,397,000 | ||||||||||||
Foot Locker, Inc. (Specialty Retail) | 8.500% | 01/15/2022 | 350,000 | 378,000 | ||||||||||||||
Lear Corp. (Auto Components) | 5.375% | 03/15/2024 | 1,000,000 | 1,028,684 | ||||||||||||||
Penske Automotive Group, Inc. (Specialty Retail) | 5.750% | 10/01/2022 | 1,090,000 | 1,087,275 | ||||||||||||||
Reliance Intermediate Holdings LP (Specialty Retail) | (b) | 6.500% | 04/01/2023 | 4,012,000 | 4,092,240 | |||||||||||||
Silversea Cruise Finance Ltd. (Hotels, Restaurants & Leisure) | (b) | 7.250% | 02/01/2025 | 1,935,000 | 2,045,682 | |||||||||||||
William Carter Co. / The (Textiles, Apparel & Luxury Goods) | 5.250% | 08/15/2021 | 695,000 | 691,525 | ||||||||||||||
William Lyon Homes, Inc. (Textiles, Apparel & Luxury Goods) | 7.000% | 08/15/2022 | 3,250,000 | 3,217,500 | ||||||||||||||
|
| |||||||||||||||||
14,937,906 | ||||||||||||||||||
|
| |||||||||||||||||
CONSUMER STAPLES – 1.2% | ||||||||||||||||||
Central Garden & Pet Co. (Household Products) | 6.125% | 11/15/2023 | 2,229,000 | 2,223,428 | ||||||||||||||
Conagra Brands, Inc. (Food Products) | 7.125% | 10/01/2026 | 1,000,000 | 1,134,825 | ||||||||||||||
Kraft Heinz Foods Co. (Food Products) | (b) | 4.875% | 02/15/2025 | 2,080,000 | 2,088,579 | |||||||||||||
|
| |||||||||||||||||
5,446,832 | ||||||||||||||||||
|
| |||||||||||||||||
ENERGY – 1.9% | ||||||||||||||||||
Andeavor Logistics LP / Tesoro Logistics Finance Corp. (Oil, Gas & Consumable Fuels) | 6.250% | 10/15/2022 | 2,748,000 | 2,802,960 | ||||||||||||||
Andeavor Logistics LP / Tesoro Logistics Finance Corp. (Oil, Gas & Consumable Fuels) | 6.375% | 05/01/2024 | 4,445,000 | 4,589,462 | ||||||||||||||
Continental Resources, Inc. (Oil, Gas & Consumable Fuels) | 5.000% | 09/15/2022 | 1,304,000 | 1,294,683 | ||||||||||||||
|
| |||||||||||||||||
8,687,105 | ||||||||||||||||||
|
| |||||||||||||||||
FINANCIALS – 3.7% | ||||||||||||||||||
Delphi Financial Group, Inc. (Insurance) | 7.875% | 01/31/2020 | 6,140,000 | 6,425,821 | ||||||||||||||
Jefferies Finance LLC / JFIN Co-Issuer Corp. (Capital Markets) | (b) | 7.375% | 04/01/2020 | 3,902,000 | 3,892,245 | |||||||||||||
Nationwide Mutual Insurance Co. (Insurance) | (b) | 7.875% | 04/01/2033 | 3,000,000 | 4,031,538 | |||||||||||||
Willis North America, Inc. (Insurance) | 7.000% | 09/29/2019 | 3,000,000 | 3,068,882 | ||||||||||||||
|
| |||||||||||||||||
17,418,486 | ||||||||||||||||||
|
| |||||||||||||||||
HEALTH CARE – 2.8% | ||||||||||||||||||
Becton Dickinson and Co. (Health Care Equip. & Supplies) | 3.875% | 05/15/2024 | 3,000,000 | 2,987,742 | ||||||||||||||
Catholic Health Initiatives (Health Care Providers & Svs.) | 2.950% | 11/01/2022 | 4,000,000 | 3,912,168 | ||||||||||||||
Centene Corp. (Health Care Providers & Svs.) | 5.625% | 02/15/2021 | 510,000 | 511,275 | ||||||||||||||
Hill-Rom Holdings, Inc. (Health Care Equip. & Supplies) | (b) | 5.750% | 09/01/2023 | 2,190,000 | 2,190,000 | |||||||||||||
Molina Healthcare, Inc. (Health Care Providers & Svs.) | 5.375% | 11/15/2022 | 3,500,000 | 3,377,500 | ||||||||||||||
|
| |||||||||||||||||
12,978,685 | ||||||||||||||||||
|
| |||||||||||||||||
INDUSTRIALS – 0.9% | ||||||||||||||||||
R.R. Donnelley & Sons Co. (Commercial Svs. & Supplies) | 7.875% | 03/15/2021 | 618,000 | 618,000 | ||||||||||||||
USG Corp. (Building Products) | (b) | 5.500% | 03/01/2025 | 2,700,000 | 2,720,250 | |||||||||||||
XPO Logistics, Inc. (Air Freight & Logistics) | (b) | 6.500% | 06/15/2022 | 1,050,000 | 1,040,812 | |||||||||||||
|
| |||||||||||||||||
4,379,062 | ||||||||||||||||||
|
| |||||||||||||||||
INFORMATION TECHNOLOGY – 1.5% | ||||||||||||||||||
Amkor Technology, Inc. (Semiconductors & Equip.) | 6.375% | 10/01/2022 | 3,500,000 | 3,509,800 | ||||||||||||||
Dell International LLC / EMC Corp. (Computers & Peripherals) | (b) | 7.125% | 06/15/2024 | 1,000,000 | 1,017,500 | |||||||||||||
NXP BV / NXP Funding LLC (Semiconductors & Equip.) | (b) | 4.625% | 06/01/2023 | 2,615,000 | 2,562,700 | |||||||||||||
|
| |||||||||||||||||
7,090,000 | ||||||||||||||||||
|
| |||||||||||||||||
MATERIALS – 0.8% | ||||||||||||||||||
Hecla Mining Co. (Metals & Mining) | 6.875% | 05/01/2021 | 550,000 | 539,000 | ||||||||||||||
Mercer International, Inc. (Paper & Forest Products) | 7.750% | 12/01/2022 | 188,000 | 193,640 | ||||||||||||||
Standard Industries, Inc. (Construction Materials) | (b) | 5.500% | 02/15/2023 | 1,185,000 | 1,161,300 | |||||||||||||
Teck Resources Ltd. (Metals & Mining) | (b) | 8.500% | 06/01/2024 | 1,750,000 | 1,874,688 | |||||||||||||
|
| |||||||||||||||||
3,768,628 | ||||||||||||||||||
|
| |||||||||||||||||
REAL ESTATE – 0.9% | ||||||||||||||||||
Select Income REIT (Equity REIT) | 4.500% | 02/01/2025 | 4,450,000 | 4,193,048 | ||||||||||||||
|
| |||||||||||||||||
UTILITIES – 0.5% | ||||||||||||||||||
Vistra Energy Corp. (Ind. Power & Renewable Elec.) | 7.625% | 11/01/2024 | 2,145,000 | 2,262,975 | ||||||||||||||
|
| |||||||||||||||||
Total Corporate Bonds (Cost $91,172,787) | $ | 88,309,569 | ||||||||||||||||
|
|
84 | (continued) |
Ohio National Fund, Inc. | ON ICON Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Closed-End Mutual Funds – 3.8% | Shares | Value | ||||||||||||||
Asia Pacific Fund, Inc. / The | 205,264 | $ 2,340,010 | ||||||||||||||
BlackRock Enhanced Government Fund, Inc. | 59,009 | 765,937 | ||||||||||||||
BlackRock Income Trust, Inc. | 933,658 | 5,265,831 | ||||||||||||||
Duff & Phelps Utility and Corporate Bond Trust, Inc. | 122,035 | 1,003,128 | ||||||||||||||
Eaton Vance High Income 2021 Target Term Trust | 31,032 | 276,805 | ||||||||||||||
High Income Securities Fund | 319,705 | 2,845,375 | ||||||||||||||
Nuveen Taxable Municipal Income Fund | 264,354 | 5,117,893 | ||||||||||||||
| ||||||||||||||||
Total Closed-End Mutual Funds (Cost $18,729,575) | $ 17,614,979 | |||||||||||||||
| ||||||||||||||||
U.S. Treasury Obligations – 2.4% | Rate | Maturity | Face Amount | Value | ||||||||||||
U.S. Treasury Note | 2.500% | 12/31/2020 | $ 9,000,000 | $ 8,997,751 | ||||||||||||
U.S. Treasury Note | 3.125% | 11/15/2028 | 2,000,000 | 2,075,909 | ||||||||||||
| ||||||||||||||||
Total U.S. Treasury Obligations (Cost $10,977,291) | $ 11,073,660 | |||||||||||||||
| ||||||||||||||||
Preferred Securities – 2.1% | Rate | Quantity | Value | |||||||||||||
FINANCIALS – 1.4% | ||||||||||||||||
Argo Group U.S., Inc. (Insurance) | 6.500% | 219,334 | $ 5,470,190 | |||||||||||||
Cabco Series 2004-101 Trust Goldman Sachs Capital I (Interest Rate Floor: 3.25%, Interest Rate Cap: 8.25%) (Diversified Financial Svs.) | QL + 85 | 46,713 | 924,450 | |||||||||||||
MVC Capital, Inc. (Capital Markets) | 6.250% | 9,202 | 229,866 | |||||||||||||
| ||||||||||||||||
6,624,506 | ||||||||||||||||
| ||||||||||||||||
REAL ESTATE – 0.7% | ||||||||||||||||
Equity Commonwealth (Equity REIT) | 6.500% | 119,203 | 3,009,876 | |||||||||||||
| ||||||||||||||||
Total Preferred Securities (Cost $9,937,708) | $ 9,634,382 | |||||||||||||||
| ||||||||||||||||
Asset-Backed Securities – 1.4% | Rate | Maturity | Face Amount | Value | ||||||||||||
FINANCIALS – 1.3% | ||||||||||||||||
SMB Private Education Loan Trust 2014-A C | (b) | 4.500% | 09/15/2045 | $ 6,250,000 | $ 5,927,031 | |||||||||||
| ||||||||||||||||
INDUSTRIALS – 0.1% | ||||||||||||||||
United Airlines 2007-1 Class B Pass Through Trust | 7.336% | 07/02/2019 | 775,227 | 786,855 | ||||||||||||
| ||||||||||||||||
Total Asset-Backed Securities (Cost $6,828,631) | $ 6,713,886 | |||||||||||||||
| ||||||||||||||||
Money Market Funds – 4.1% | Shares | Value | ||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (c) | 19,395,453 | $ 19,393,514 | |||||||||||||
| ||||||||||||||||
Total Money Market Funds (Cost $19,394,914) | $ 19,393,514 | |||||||||||||||
| ||||||||||||||||
Total Investments – 99.9% (Cost $484,003,598) | (d) | $466,306,290 | ||||||||||||||
Other Assets in Excess of Liabilities – 0.1% | 378,601 | |||||||||||||||
| ||||||||||||||||
Net Assets – 100.0% | $466,684,891 | |||||||||||||||
|
Percentages are stated as a percent of net assets.
Abbreviations:
QL: Quarterly U.S. LIBOR Rate, 2.808% at 12/31/2018
Footnotes:
(a) | Non-income producing security. |
(b) | Security exempt from registration under Regulation D of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified buyers under Rule 144A. At December 31, 2018, the value of these securities totaled $44,188,407, or 9.5% of the Portfolio’s net assets. |
(c) | Rate represents the seven-day yield at December 31, 2018. |
(d) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
85 |
Ohio National Fund, Inc. | ON S&P MidCap 400® Index Portfolio (Unaudited) |
Objective/Strategy |
The ON S&P MidCap 400® Index Portfolio (formerly the S&P MidCap 400® Index Portfolio) seeks total return approximating that of the Standard & Poor’s MidCap 400® Index (S&P MidCap 400® Index), including reinvestment of dividends, at a risk level consistent with that of the S&P MidCap 400® Index by investing, under normal circumstances, more than 80% of its assets in the securities included in the S&P MidCap 400® Index.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -11.45% | |||
Five years | 3.08% | |||
Ten years | 9.50% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free 1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.71% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments from Sub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON S&P MidCap 400® Index Portfolio returned -11.45% versus -11.08% for the benchmark, the S&P MidCap 400® Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The Portfolio intends to track the underlying return of the S&P MidCap 400® Index. There were no material market events or changes in strategy during the year that materially impacted the Portfolio’s relative return. Sources of return variance were related to the cumulative impact of investing the day-to-day cash flows in the Portfolio.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.There was no impact from either sector allocation or stock selection that caused any material performance variance between the Portfolio and its benchmark.(1)
Utilities added to the benchmark’s return slightly, as the sector was up 6.7% for the year. Health Care was another positive contributor, gaining 6.5%. Two sectors driving the benchmark’s returns down were Energy and Materials, falling 29.4% and 20.4%, respectively.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.ABIOMED, Inc. (up 107.3% for the year) and Bioverative, Inc. (94.1%) were the two most positive contributors. Underperforming constituents included Thor Industries, Inc. (-64.8% for the year) and Coherent, Inc. (-62.5%).(1)
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact performance?
A.The Portfolio uses S&P MidCap 400® Index futures contracts primarily to equitize open dividend receivables, as well as to manage day-to-day cash flows, to ensure the Portfolio is fully invested. The futures did not meaningfully impact performance, however, due to their index characteristics and size in relation to the Portfolio’s net assets.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A.There were no significant changes to the investment strategy or selection process during the reporting period. Over the 2018 calendar year, the portfolio management team added a total of four new members. Their names and positions have been provided below for reference.
● Manav Verma, CFA – Portfolio Manager
● Michael Trotter – Assistant Portfolio Manager
● Clinton Clark – Index Analyst
● Daniel Glenn – Portfolio Manager
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
86 | (continued) |
Ohio National Fund, Inc. | ON S&P MidCap 400® Index Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P MidCap 400® Index is a capitalization-weighted index of 400 common stocks representing all major industries in the mid-range of the U.S. stock market. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Prior to December 16, 2016, the Portfolio was known as the Target VIP Portfolio. The strategy of the Target VIP Portfolio was to seek above average total return by investing in common stocks of companies which were identified by a model that applied separate uniquely specialized strategies.
The S&P MidCap 400® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Ohio National Investments, Inc. (“ONI”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by ONI. The S&P MidCap 400® Index Portfolio of Ohio National Fund, Inc. is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P MidCap 400® Index.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 99.9 | |||
Money Market Funds and Other Net Assets | 0.1 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Teleflex, Inc. | 0.8 | ||||
2. | Atmos Energy Corp. | 0.7 | ||||
3. | Domino’s Pizza, Inc. | 0.7 | ||||
4. | IDEX Corp. | 0.7 | ||||
5. | UGI Corp. | 0.6 | ||||
6. | Alleghany Corp. | 0.6 | ||||
7. | STERIS PLC | 0.6 | ||||
8. | PTC, Inc. | 0.6 | ||||
9. | Reinsurance Group of America, Inc. | 0.6 | ||||
10. | Zebra Technologies Corp. Class A | 0.6 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks): |
% of Net Assets | ||||
Financials | 16.4 | |||
Industrials | 15.4 | |||
Information Technology | 15.3 | |||
Consumer Discretionary | 11.7 | |||
Health Care | 10.0 | |||
Real Estate | 9.7 | |||
Materials | 6.6 | |||
Utilities | 5.6 | |||
Energy | 3.7 | |||
Consumer Staples | 3.0 | |||
Communication Services | 2.5 | |||
|
| |||
99.9 | ||||
|
|
87
Ohio National Fund, Inc. | ON S&P MidCap 400®Index Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 99.9% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 2.5% |
| |||||||||||
AMC Networks, Inc. Class A (Media) | (a) | 9,321 | $ 511,536 | |||||||||
Cable One, Inc. (Media) | 1,026 | 841,423 | ||||||||||
Cars.com, Inc. (Interactive Media & Svs.) | (a) | 13,053 | 280,640 | |||||||||
Cinemark Holdings, Inc. (Entertainment) | 21,998 | 787,528 | ||||||||||
John Wiley & Sons, Inc. Class A (Media) | 9,360 | 439,639 | ||||||||||
Live Nation Entertainment, Inc. (Entertainment) | (a) | 28,604 | 1,408,747 | |||||||||
Meredith Corp. (Media) | 8,251 | 428,557 | ||||||||||
New York Times Co. / The Class A (Media) | 29,211 | 651,113 | ||||||||||
TEGNA, Inc. (Media) | 44,549 | 484,248 | ||||||||||
Telephone & Data Systems, Inc. (Wireless Telecom. Svs.) | 19,235 | 625,907 | ||||||||||
World Wrestling Entertainment, Inc. Class A (Entertainment) | 8,984 | 671,284 | ||||||||||
Yelp, Inc. (Interactive Media & Svs.) | (a) | 15,817 | 553,437 | |||||||||
|
| |||||||||||
7,684,059 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 11.7% |
| |||||||||||
Aaron’s, Inc. (Specialty Retail) | 14,194 | 596,858 | ||||||||||
Adient PLC (Auto Components) | 17,977 | 270,734 | ||||||||||
Adtalem Global Education, Inc. (Diversified Consumer Svs.) | (a) | 12,156 | 575,222 | |||||||||
American Eagle Outfitters, Inc. (Specialty Retail) | 34,865 | 673,940 | ||||||||||
AutoNation, Inc. (Specialty Retail) | (a) | 11,908 | 425,116 | |||||||||
Bed Bath & Beyond, Inc. (Specialty Retail) | 28,563 | 323,333 | ||||||||||
Big Lots, Inc. (Multiline Retail) | 8,337 | 241,106 | ||||||||||
Boyd Gaming Corp. (Hotels, Restaurants & Leisure) | 16,698 | 346,984 | ||||||||||
Brinker International, Inc. (Hotels, Restaurants & Leisure) | 7,991 | 351,444 | ||||||||||
Brunswick Corp. (Leisure Products) | 17,948 | 833,685 | ||||||||||
Carter’s, Inc. (Textiles, Apparel & Luxury Goods) | 9,487 | 774,329 | ||||||||||
Cheesecake Factory, Inc. / The (Hotels, Restaurants & Leisure) | 8,630 | 375,491 | ||||||||||
Churchill Downs, Inc. (Hotels, Restaurants & Leisure) | 2,471 | 602,776 | ||||||||||
Cracker Barrel Old Country Store, Inc. (Hotels, Restaurants & Leisure) | 4,973 | 794,984 | ||||||||||
Dana, Inc. (Auto Components) | 29,932 | 407,973 | ||||||||||
Deckers Outdoor Corp. (Textiles, Apparel & Luxury Goods) | (a) | 6,026 | 771,027 | |||||||||
Delphi Technologies PLC (Auto Components) | 18,311 | 262,213 | ||||||||||
Dick’s Sporting Goods, Inc. (Specialty Retail) | 15,263 | 476,206 | ||||||||||
Dillard’s, Inc. Class A (Multiline Retail) | 3,823 | 230,565 | ||||||||||
Domino’s Pizza, Inc. (Hotels, Restaurants & Leisure) | 8,604 | 2,133,706 | ||||||||||
Dunkin’ Brands Group, Inc. (Hotels, Restaurants & Leisure) | 17,091 | 1,095,875 | ||||||||||
Eldorado Resorts, Inc. (Hotels, Restaurants & Leisure) | (a) | 13,451 | 487,061 | |||||||||
Five Below, Inc. (Specialty Retail) | (a) | 11,533 | 1,180,057 | |||||||||
Gentex Corp. (Auto Components) | 54,211 | 1,095,604 | ||||||||||
Graham Holdings Co. Class B (Diversified Consumer Svs.) | 897 | 574,600 | ||||||||||
Helen of Troy Ltd. (Household Durables) | (a) | 5,463 | 716,636 | |||||||||
International Speedway Corp. Class A (Hotels, Restaurants & Leisure) | 5,047 | 221,361 | ||||||||||
Jack in the Box, Inc. (Hotels, Restaurants & Leisure) | 5,322 | 413,147 | ||||||||||
KB Home (Household Durables) | 17,836 | 340,668 | ||||||||||
Marriott Vacations Worldwide Corp. (Hotels, Restaurants & Leisure) | 8,461 | 596,585 | ||||||||||
Michaels Cos., Inc. / The (Specialty Retail) | (a) | 18,597 | 251,803 | |||||||||
Murphy U.S.A., Inc. (Specialty Retail) | (a) | 6,204 | 475,475 | |||||||||
NVR, Inc. (Household Durables) | (a) | 703 | 1,713,204 | |||||||||
Ollie’s Bargain Outlet Holdings, Inc. (Multiline Retail) | (a) | 10,669 | 709,595 |
Common Stocks (Continued) | Shares | Value | ||||||||||
CONSUMER DISCRETIONARY (continued) |
| |||||||||||
Papa John’s International, Inc. (Hotels, Restaurants & Leisure) | 4,636 | $ 184,559 | ||||||||||
Penn National Gaming, Inc. (Hotels, Restaurants & Leisure) | (a) | 22,379 | 421,397 | |||||||||
Polaris Industries, Inc. (Leisure Products) | 12,017 | 921,464 | ||||||||||
Pool Corp. (Distributors) | 8,327 | 1,237,808 | ||||||||||
Sally Beauty Holdings, Inc. (Specialty Retail) | (a) | 24,860 | 423,863 | |||||||||
Scientific Games Corp. (Hotels, Restaurants & Leisure) | (a) | 11,387 | 203,600 | |||||||||
Service Corp. International (Diversified Consumer Svs.) | 37,427 | 1,506,811 | ||||||||||
Signet Jewelers Ltd. (Specialty Retail) | 10,733 | 340,987 | ||||||||||
Six Flags Entertainment Corp. (Hotels, Restaurants & Leisure) | 14,847 | 825,939 | ||||||||||
Skechers U.S.A., Inc. Class A (Textiles, Apparel & Luxury Goods) | (a) | 27,702 | 634,099 | |||||||||
Sotheby’s (Diversified Consumer Svs.) | (a) | 7,193 | 285,850 | |||||||||
Tempur Sealy International, Inc. (Household Durables) | (a) | 9,473 | 392,182 | |||||||||
Texas Roadhouse, Inc. (Hotels, Restaurants & Leisure) | 13,769 | 822,009 | ||||||||||
Thor Industries, Inc. (Automobiles) | 10,381 | 539,812 | ||||||||||
Toll Brothers, Inc. (Household Durables) | 28,035 | 923,192 | ||||||||||
TRI Pointe Group, Inc. (Household Durables) | (a) | 29,427 | 321,637 | |||||||||
Tupperware Brands Corp. (Household Durables) | 10,053 | 317,373 | ||||||||||
Urban Outfitters, Inc. (Specialty Retail) | (a) | 15,591 | 517,621 | |||||||||
Visteon Corp. (Auto Components) | (a) | 5,982 | 360,595 | |||||||||
Weight Watchers International, Inc. (Diversified Consumer Svs.) | (a) | 8,021 | 309,210 | |||||||||
Wendy’s Co. / The (Hotels, Restaurants & Leisure) | 38,674 | 603,701 | ||||||||||
Williams-Sonoma, Inc. (Specialty Retail) | 16,575 | 836,209 | ||||||||||
Wyndham Destinations, Inc. (Hotels, Restaurants & Leisure) | 20,164 | 722,678 | ||||||||||
Wyndham Hotels & Resorts, Inc. (Hotels, Restaurants & Leisure) | 20,522 | 931,083 | ||||||||||
|
| |||||||||||
35,923,042 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 3.0% | ||||||||||||
Boston Beer Co., Inc. / The Class A (Beverages) | (a) | 1,779 | 428,454 | |||||||||
Casey’s General Stores, Inc. (Food & Staples Retailing) | 7,571 | 970,148 | ||||||||||
Edgewell Personal Care Co. (Personal Products) | (a) | 11,182 | 417,648 | |||||||||
Energizer Holdings, Inc. (Household Products) | 12,328 | 556,609 | ||||||||||
Flowers Foods, Inc. (Food Products) | 37,967 | 701,250 | ||||||||||
Hain Celestial Group, Inc. / The (Food Products) | (a) | 18,517 | 293,680 | |||||||||
Ingredion, Inc. (Food Products) | 14,624 | 1,336,634 | ||||||||||
Lancaster Colony Corp. (Food Products) | 4,039 | 714,337 | ||||||||||
Nu Skin Enterprises, Inc. Class A (Personal Products) | 11,494 | 704,927 | ||||||||||
Post Holdings, Inc. (Food Products) | (a) | 13,791 | 1,229,192 | |||||||||
Sanderson Farms, Inc. (Food Products) | 4,159 | 412,947 | ||||||||||
Sprouts Farmers Market, Inc. (Food & Staples Retailing) | (a) | 26,404 | 620,758 | |||||||||
Tootsie Roll Industries, Inc. (Food Products) | 3,832 | 127,989 | ||||||||||
TreeHouse Foods, Inc. (Food Products) | (a) | 11,587 | 587,577 | |||||||||
|
| |||||||||||
9,102,150 | ||||||||||||
|
| |||||||||||
ENERGY – 3.7% | ||||||||||||
Apergy Corp. (Energy Equip. & Svs.) | (a) | 16,002 | 433,334 | |||||||||
Callon Petroleum Co. (Oil, Gas & Consumable Fuels) | (a) | 47,116 | 305,783 | |||||||||
Chesapeake Energy Corp. (Oil, Gas & Consumable Fuels) | (a) | 189,062 | 397,030 |
88 | (continued) |
Ohio National Fund, Inc. | ON S&P MidCap 400® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
ENERGY (continued) | ||||||||||||
CNX Resources Corp. (Oil, Gas & Consumable Fuels) | (a) | 42,129 | $ 481,113 | |||||||||
Core Laboratories N.V. (Energy Equip. & Svs.) | 9,148 | 545,770 | ||||||||||
Diamond Offshore Drilling, Inc. (Energy Equip. & Svs.) | (a) | 13,325 | 125,788 | |||||||||
Diamondback Energy, Inc. (Oil, Gas & Consumable Fuels) | 1 | 93 | ||||||||||
Dril-Quip, Inc. (Energy Equip. & Svs.) | (a) | 7,401 | 222,252 | |||||||||
Ensco PLC Class A (Energy Equip. & Svs.) | 90,435 | 321,949 | ||||||||||
EQT Corp. (Oil, Gas & Consumable Fuels) | 52,647 | 994,502 | ||||||||||
Equitrans Midstream Corp. (Oil, Gas & Consumable Fuels) | (a) | 42,091 | 842,662 | |||||||||
Matador Resources Co. (Oil, Gas & Consumable Fuels) | (a) | 21,390 | 332,187 | |||||||||
McDermott International, Inc. (Energy Equip. & Svs.) | (a) | 37,387 | 244,511 | |||||||||
Murphy Oil Corp. (Oil, Gas & Consumable Fuels) | 33,660 | 787,307 | ||||||||||
Oasis Petroleum, Inc. (Oil, Gas & Consumable Fuels) | (a) | 55,342 | 306,041 | |||||||||
Oceaneering International, Inc. (Energy Equip. & Svs.) | (a) | 20,364 | 246,404 | |||||||||
Patterson-UTI Energy, Inc. (Energy Equip. & Svs.) | 44,983 | 465,574 | ||||||||||
PBF Energy, Inc. Class A (Oil, Gas & Consumable Fuels) | 24,808 | 810,477 | ||||||||||
QEP Resources, Inc. (Oil, Gas & Consumable Fuels) | (a) | 48,918 | 275,408 | |||||||||
Range Resources Corp. (Oil, Gas & Consumable Fuels) | 42,850 | 410,075 | ||||||||||
Rowan Cos. PLC Class A (Energy Equip. & Svs.) | (a) | 26,255 | 220,279 | |||||||||
SM Energy Co. (Oil, Gas & Consumable Fuels) | 21,358 | 330,622 | ||||||||||
Southwestern Energy Co. (Oil, Gas & Consumable Fuels) | (a) | 120,278 | 410,148 | |||||||||
Transocean Ltd. (Energy Equip. & Svs.) | (a) | 104,682 | 726,493 | |||||||||
World Fuel Services Corp. (Oil, Gas & Consumable Fuels) | 13,911 | 297,835 | ||||||||||
WPX Energy, Inc. (Oil, Gas & Consumable Fuels) | (a) | 81,747 | 927,828 | |||||||||
|
| |||||||||||
11,461,465 | ||||||||||||
|
| |||||||||||
FINANCIALS – 16.4% | ||||||||||||
Alleghany Corp. (Insurance) | 3,069 | 1,912,969 | ||||||||||
American Financial Group, Inc. (Insurance) | 14,580 | 1,319,927 | ||||||||||
Aspen Insurance Holdings Ltd. (Insurance) | 12,353 | 518,702 | ||||||||||
Associated Banc-Corp. (Banks) | 34,305 | 678,896 | ||||||||||
BancorpSouth Bank (Banks) | 18,768 | 490,596 | ||||||||||
Bank of Hawaii Corp. (Banks) | 8,640 | 581,645 | ||||||||||
Bank OZK (Banks) | 25,012 | 571,024 | ||||||||||
Brown & Brown, Inc. (Insurance) | 48,536 | 1,337,652 | ||||||||||
Cathay General Bancorp (Banks) | 15,880 | 532,456 | ||||||||||
Chemical Financial Corp. (Banks) | 14,784 | 541,242 | ||||||||||
CNO Financial Group, Inc. (Insurance) | 34,066 | 506,902 | ||||||||||
Commerce Bancshares, Inc. (Banks) | 20,542 | 1,157,953 | ||||||||||
Cullen / Frost Bankers, Inc. (Banks) | 13,232 | 1,163,622 | ||||||||||
East West Bancorp, Inc. (Banks) | 29,958 | 1,304,072 | ||||||||||
Eaton Vance Corp. (Capital Markets) | 24,112 | 848,260 | ||||||||||
Evercore, Inc. Class A (Capital Markets) | 8,375 | 599,315 | ||||||||||
FactSet Research Systems, Inc. (Capital Markets) | 7,867 | 1,574,423 | ||||||||||
Federated Investors, Inc. Class B (Capital Markets) | 19,757 | 524,548 | ||||||||||
First American Financial Corp. (Insurance) | 23,131 | 1,032,568 | ||||||||||
First Horizon National Corp. (Banks) | 67,024 | 882,036 | ||||||||||
FNB Corp. (Banks) | 67,104 | 660,303 | ||||||||||
Fulton Financial Corp. (Banks) | 36,437 | 564,045 | ||||||||||
Genworth Financial, Inc. Class A (Insurance) | (a) | 103,620 | 482,869 | |||||||||
Hancock Whitney Corp. (Banks) | 17,590 | 609,493 |
Common Stocks (Continued) | Shares | Value | ||||||||||
FINANCIALS (continued) | ||||||||||||
Hanover Insurance Group, Inc. / The (Insurance) | 8,760 | $ 1,022,905 | ||||||||||
Home BancShares, Inc. (Banks) | 32,920 | 537,913 | ||||||||||
Interactive Brokers Group, Inc. Class A (Capital Markets) | 15,537 | 849,097 | ||||||||||
International Bancshares Corp. (Banks) | 11,364 | 390,922 | ||||||||||
Janus Henderson Group PLC (Capital Markets) | 34,525 | 715,358 | ||||||||||
Kemper Corp. (Insurance) | 12,594 | 835,990 | ||||||||||
Legg Mason, Inc. (Capital Markets) | 17,696 | 451,425 | ||||||||||
LendingTree, Inc. (Thrifts & Mortgage Finance) | (a) | 1,540 | 338,138 | |||||||||
MarketAxess Holdings, Inc. (Capital Markets) | 7,776 | 1,643,147 | ||||||||||
MB Financial, Inc. (Banks) | 17,432 | 690,830 | ||||||||||
Mercury General Corp. (Insurance) | 5,615 | 290,352 | ||||||||||
Navient Corp. (Consumer Finance) | 47,504 | 418,510 | ||||||||||
New York Community Bancorp, Inc. (Thrifts & Mortgage Finance) | 101,461 | 954,748 | ||||||||||
Old Republic International Corp. (Insurance) | 58,868 | 1,210,915 | ||||||||||
PacWest Bancorp (Banks) | 25,197 | 838,556 | ||||||||||
Pinnacle Financial Partners, Inc. (Banks) | 15,150 | 698,415 | ||||||||||
Primerica, Inc. (Insurance) | 8,885 | 868,153 | ||||||||||
Prosperity Bancshares, Inc. (Banks) | 13,729 | 855,317 | ||||||||||
Reinsurance Group of America, Inc. (Insurance) | 12,982 | 1,820,466 | ||||||||||
RenaissanceRe Holdings Ltd. (Insurance) | 8,329 | 1,113,587 | ||||||||||
SEI Investments Co. (Capital Markets) | 27,018 | 1,248,232 | ||||||||||
Signature Bank (Banks) | 11,039 | 1,134,920 | ||||||||||
SLM Corp. (Consumer Finance) | (a) | 90,148 | 749,130 | |||||||||
Sterling Bancorp (Banks) | 46,439 | 766,708 | ||||||||||
Stifel Financial Corp. (Capital Markets) | 14,901 | 617,199 | ||||||||||
Synovus Financial Corp. (Banks) | 34,310 | 1,097,577 | ||||||||||
TCF Financial Corp. (Banks) | 34,517 | 672,736 | ||||||||||
Texas Capital Bancshares, Inc. (Banks) | (a) | 10,383 | 530,467 | |||||||||
Trustmark Corp. (Banks) | 13,882 | 394,665 | ||||||||||
UMB Financial Corp. (Banks) | 9,289 | 566,350 | ||||||||||
Umpqua Holdings Corp. (Banks) | 45,572 | 724,595 | ||||||||||
United Bankshares, Inc. (Banks) | 21,352 | 664,261 | ||||||||||
Valley National Bancorp (Banks) | 68,592 | 609,097 | ||||||||||
W.R. Berkley Corp. (Insurance) | 19,965 | 1,475,613 | ||||||||||
Washington Federal, Inc. (Thrifts & Mortgage Finance) | 16,862 | 450,384 | ||||||||||
Webster Financial Corp. (Banks) | 19,087 | 940,798 | ||||||||||
Wintrust Financial Corp. (Banks) | 11,669 | 775,872 | ||||||||||
|
| |||||||||||
50,358,866 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 10.0% | ||||||||||||
Acadia Healthcare Co., Inc. (Health Care Providers & Svs.) | (a) | 18,262 | 469,516 | |||||||||
Allscripts Healthcare Solutions, Inc. (Health Care Technology) | (a) | 36,152 | 348,505 | |||||||||
Avanos Medical, Inc. (Health Care Equip. & Supplies) | (a) | 9,814 | 439,569 | |||||||||
Bio-Rad Laboratories, Inc. Class A (Life Sciences Tools & Svs.) | (a) | 4,167 | 967,661 | |||||||||
Bio-Techne Corp. (Life Sciences Tools & Svs.) | 7,815 | 1,130,987 | ||||||||||
Cantel Medical Corp. (Health Care Equip. & Supplies) | 7,511 | 559,194 | ||||||||||
Catalent, Inc. (Pharmaceuticals) | (a) | 30,081 | 937,926 | |||||||||
Charles River Laboratories International, Inc. (Life Sciences Tools & Svs.) | (a) | 9,946 | 1,125,688 | |||||||||
Chemed Corp. (Health Care Providers & Svs.) | 3,313 | 938,507 | ||||||||||
Encompass Health Corp. (Health Care Providers & Svs.) | 20,459 | 1,262,320 | ||||||||||
Exelixis, Inc. (Biotechnology) | (a) | 61,867 | 1,216,924 | |||||||||
Globus Medical, Inc. Class A (Health Care Equip. & Supplies) | (a) | 15,730 | 680,794 | |||||||||
Haemonetics Corp. (Health Care Equip. & Supplies) | (a) | 10,695 | 1,070,035 | |||||||||
HealthEquity, Inc. (Health Care Providers & Svs.) | (a) | 11,232 | 669,989 |
89 | (continued) |
Ohio National Fund, Inc. | ON S&P MidCap 400® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
HEALTH CARE (continued) | ||||||||||||
Hill-Rom Holdings, Inc. (Health Care Equip. & Supplies) | 13,913 | $ | 1,231,996 | |||||||||
ICU Medical, Inc. (Health Care Equip. & Supplies) | (a | ) | 3,434 | 788,549 | ||||||||
Inogen, Inc. (Health Care Equip. & Supplies) | (a | ) | 3,652 | 453,469 | ||||||||
Integra LifeSciences Holdings Corp. (Health Care Equip. & Supplies) | (a | ) | 14,629 | 659,768 | ||||||||
Ligand Pharmaceuticals, Inc. (Biotechnology) | (a | ) | 4,398 | 596,809 | ||||||||
LivaNova PLC (Health Care Equip. & Supplies) | (a | ) | 10,074 | 921,469 | ||||||||
Mallinckrodt PLC (Pharmaceuticals) | (a | ) | 17,239 | 272,376 | ||||||||
Masimo Corp. (Health Care Equip. & Supplies) | (a | ) | 10,089 | 1,083,256 | ||||||||
Medidata Solutions, Inc. (Health Care Technology) | (a | ) | 12,662 | 853,672 | ||||||||
MEDNAX, Inc. (Health Care Providers & Svs.) | (a | ) | 18,503 | 610,599 | ||||||||
Molina Healthcare, Inc. (Health Care Providers & Svs.) | (a | ) | 12,905 | 1,499,819 | ||||||||
NuVasive, Inc. (Health Care Equip. & Supplies) | (a | ) | 10,640 | 527,318 | ||||||||
Patterson Cos., Inc. (Health Care Providers & Svs.) | 17,093 | 336,048 | ||||||||||
PRA Health Sciences, Inc. (Life Sciences Tools & Svs.) | (a | ) | 12,101 | 1,112,808 | ||||||||
Prestige Consumer Healthcare, Inc. (Pharmaceuticals) | (a | ) | 10,706 | 330,601 | ||||||||
STERIS PLC (Health Care Equip. & Supplies) | 17,477 | 1,867,418 | ||||||||||
Syneos Health, Inc. (Life Sciences Tools & Svs.) | (a | ) | 12,603 | 495,928 | ||||||||
Teleflex, Inc. (Health Care Equip. & Supplies) | 9,511 | 2,458,403 | ||||||||||
Tenet Healthcare Corp. (Health Care Providers & Svs.) | (a | ) | 17,179 | 294,448 | ||||||||
United Therapeutics Corp. (Biotechnology) | (a | ) | 9,019 | 982,169 | ||||||||
West Pharmaceutical Services, Inc. (Health Care Equip. & Supplies) | 15,322 | 1,502,016 | ||||||||||
|
| |||||||||||
30,696,554 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 15.4% | ||||||||||||
Acuity Brands, Inc. (Electrical Equip.) | 8,291 | 953,050 | ||||||||||
AECOM (Construction & Engineering) | (a | ) | 32,332 | 856,798 | ||||||||
AGCO Corp. (Machinery) | 13,607 | 757,502 | ||||||||||
ASGN, Inc. (Professional Svs.) | (a | ) | 10,859 | 591,816 | ||||||||
Avis Budget Group, Inc. (Road & Rail) | (a | ) | 13,444 | 302,221 | ||||||||
Brink’s Co. / The (Commercial Svs. & Supplies) | 10,474 | 677,144 | ||||||||||
Carlisle Cos., Inc. (Industrial Conglomerates) | 12,316 | 1,238,004 | ||||||||||
Clean Harbors, Inc. (Commercial Svs. & Supplies) | (a | ) | 10,539 | 520,100 | ||||||||
Crane Co. (Machinery) | 10,453 | 754,498 | ||||||||||
Curtiss-Wright Corp. (Aerospace & Defense) | 9,056 | 924,799 | ||||||||||
Deluxe Corp. (Commercial Svs. & Supplies) | 9,582 | 368,332 | ||||||||||
Donaldson Co., Inc. (Machinery) | 26,466 | 1,148,360 | ||||||||||
Dun & Bradstreet Corp. / The (Professional Svs.) | 7,684 | 1,096,814 | ||||||||||
Dycom Industries, Inc. (Construction & Engineering) | (a | ) | 6,476 | 349,963 | ||||||||
EMCOR Group, Inc. (Construction & Engineering) | 11,902 | 710,430 | ||||||||||
EnerSys (Electrical Equip.) | 8,722 | 676,914 | ||||||||||
Esterline Technologies Corp. (Aerospace & Defense) | (a | ) | 5,497 | 667,611 | ||||||||
GATX Corp. (Trading Companies & Distributors) | 7,775 | 550,548 | ||||||||||
Genesee & Wyoming, Inc. Class A (Road & Rail) | (a | ) | 12,074 | 893,717 | ||||||||
Graco, Inc. (Machinery) | 34,428 | 1,440,812 | ||||||||||
Granite Construction, Inc. (Construction & Engineering) | 9,704 | 390,877 | ||||||||||
Healthcare Services Group, Inc. (Commercial Svs. & Supplies) | 15,271 | 613,589 | ||||||||||
Herman Miller, Inc. (Commercial Svs. & Supplies) | 12,265 | 371,016 | ||||||||||
HNI Corp. (Commercial Svs. & Supplies) | 9,068 | 321,279 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS (continued) | ||||||||||||
Hubbell, Inc. (Electrical Equip.) | 11,313 | $ | 1,123,833 | |||||||||
IDEX Corp. (Machinery) | 15,868 | 2,003,494 | ||||||||||
Insperity, Inc. (Professional Svs.) | 7,870 | 734,743 | ||||||||||
ITT, Inc. (Machinery) | 18,128 | 875,039 | ||||||||||
JetBlue Airways Corp. (Airlines) | (a | ) | 63,069 | 1,012,888 | ||||||||
KBR, Inc. (Construction & Engineering) | 29,151 | 442,512 | ||||||||||
Kennametal, Inc. (Machinery) | 16,989 | 565,394 | ||||||||||
Kirby Corp. (Marine) | (a | ) | 11,149 | 750,997 | ||||||||
Knight-Swift Transportation Holdings, Inc. (Road & Rail) | 26,005 | 651,945 | ||||||||||
Landstar System, Inc. (Road & Rail) | 8,509 | 814,056 | ||||||||||
Lennox International, Inc. (Building Products) | 7,499 | 1,641,231 | ||||||||||
Lincoln Electric Holdings, Inc. (Machinery) | 13,326 | 1,050,755 | ||||||||||
ManpowerGroup, Inc. (Professional Svs.) | 12,784 | 828,403 | ||||||||||
MasTec, Inc. (Construction & Engineering) | (a | ) | 13,187 | 534,865 | ||||||||
MSA Safety, Inc. (Commercial Svs. & Supplies) | 7,244 | 682,892 | ||||||||||
MSC Industrial Direct Co., Inc. Class A (Trading Companies & Distributors) | 9,396 | 722,740 | ||||||||||
Nordson Corp. (Machinery) | 10,825 | 1,291,964 | ||||||||||
NOW, Inc. (Trading Companies & Distributors) | (a | ) | 22,416 | 260,922 | ||||||||
nVent Electric PLC (Electrical Equip.) | 33,787 | 758,856 | ||||||||||
Old Dominion Freight Line, Inc. (Road & Rail) | 13,527 | 1,670,449 | ||||||||||
Oshkosh Corp. (Machinery) | 14,877 | 912,109 | ||||||||||
Pitney Bowes, Inc. (Commercial Svs. & Supplies) | 38,767 | 229,113 | ||||||||||
Regal Beloit Corp. (Electrical Equip.) | 8,928 | 625,406 | ||||||||||
Resideo Technologies, Inc. (Building Products) | (a | ) | 25,445 | 522,895 | ||||||||
Ryder System, Inc. (Road & Rail) | 10,986 | 528,976 | ||||||||||
Stericycle, Inc. (Commercial Svs. & Supplies) | (a | ) | 17,622 | 646,551 | ||||||||
Teledyne Technologies, Inc. (Aerospace & Defense) | (a | ) | 7,463 | 1,545,363 | ||||||||
Terex Corp. (Machinery) | 13,426 | 370,155 | ||||||||||
Timken Co. / The (Machinery) | 14,299 | 533,639 | ||||||||||
Toro Co. / The (Machinery) | 21,769 | 1,216,452 | ||||||||||
Trinity Industries, Inc. (Machinery) | 30,274 | 623,342 | ||||||||||
Valmont Industries, Inc. (Construction & Engineering) | 4,570 | 507,042 | ||||||||||
Wabtec Corp. (Machinery) | 17,793 | 1,249,958 | ||||||||||
Watsco, Inc. (Trading Companies & Distributors) | 6,646 | 924,724 | ||||||||||
Werner Enterprises, Inc. (Road & Rail) | 9,130 | 269,700 | ||||||||||
Woodward, Inc. (Machinery) | 11,506 | 854,781 | ||||||||||
|
| |||||||||||
47,154,378 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 15.3% |
| |||||||||||
ACI Worldwide, Inc. (Software) | (a | ) | 24,000 | 664,080 | ||||||||
ARRIS International PLC (Communications Equip.) | (a | ) | 33,818 | 1,033,816 | ||||||||
Arrow Electronics, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 18,024 | 1,242,755 | ||||||||
Avnet, Inc. (Electronic Equip., Instr. & Comp.) | 23,017 | 830,914 | ||||||||||
Belden, Inc. (Electronic Equip., Instr. & Comp.) . | 8,340 | 348,362 | ||||||||||
Blackbaud, Inc. (Software) | 10,050 | 632,145 | ||||||||||
CACI International, Inc. Class A (IT Svs.) | (a | ) | 5,142 | 740,602 | ||||||||
CDK Global, Inc. (Software) | 26,636 | 1,275,332 | ||||||||||
Ciena Corp. (Communications Equip.) | (a | ) | 29,360 | 995,598 | ||||||||
Cirrus Logic, Inc. (Semiconductors & Equip.) | (a | ) | 12,384 | 410,901 | ||||||||
Cognex Corp. (Electronic Equip., Instr. & Comp.) | 35,613 | 1,377,155 | ||||||||||
Coherent, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 5,045 | 533,307 | ||||||||
CommVault Systems, Inc. (Software) | (a | ) | 8,046 | 475,438 | ||||||||
CoreLogic, Inc. (IT Svs.) | (a | ) | 16,670 | 557,111 | ||||||||
Cree, Inc. (Semiconductors & Equip.) | (a | ) | 21,223 | 907,814 | ||||||||
Cypress Semiconductor Corp. (Semiconductors & Equip.) | 74,900 | 952,728 | ||||||||||
Fair Isaac Corp. (Software) | (a | ) | 5,988 | 1,119,756 | ||||||||
First Solar, Inc. (Semiconductors & Equip.) | (a | ) | 15,616 | 662,977 |
90 | (continued) |
Ohio National Fund, Inc. | ON S&P MidCap 400® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INFORMATION TECHNOLOGY (continued) |
| |||||||||||
Integrated Device Technology, Inc. (Semiconductors & Equip.) | (a | ) | 26,691 | $ | 1,292,645 | |||||||
InterDigital, Inc. (Communications Equip.) | 7,003 | 465,209 | ||||||||||
j2 Global, Inc. (Software) | 9,689 | 672,223 | ||||||||||
Jabil, Inc. (Electronic Equip., Instr. & Comp.) | 29,751 | 737,527 | ||||||||||
Leidos Holdings, Inc. (IT Svs.) | 30,976 | 1,633,055 | ||||||||||
Littelfuse, Inc. (Electronic Equip., Instr. & Comp.) | 5,202 | 892,039 | ||||||||||
LiveRamp Holdings, Inc. (IT Svs.) | (a | ) | 14,067 | 543,408 | ||||||||
LogMeIn, Inc. (Software) | 10,587 | 863,581 | ||||||||||
Lumentum Holdings, Inc. (Communications Equip.) | (a | ) | 15,239 | 640,190 | ||||||||
Manhattan Associates, Inc. (Software) | (a | ) | 13,529 | 573,224 | ||||||||
MAXIMUS, Inc. (IT Svs.) | 13,271 | 863,809 | ||||||||||
MKS Instruments, Inc. (Semiconductors & Equip.) | 11,172 | 721,823 | ||||||||||
Monolithic Power Systems, Inc. (Semiconductors & Equip.) | 8,075 | 938,719 | ||||||||||
National Instruments Corp. (Electronic Equip., Instr. & Comp.) | 23,281 | 1,056,492 | ||||||||||
NCR Corp. (Tech. Hardware, Storage & Periph.) | (a | ) | 24,458 | 564,491 | ||||||||
NetScout Systems, Inc. (Communications Equip.) | (a | ) | 14,471 | 341,950 | ||||||||
Perspecta, Inc. (IT Svs.) | 29,268 | 503,995 | ||||||||||
Plantronics, Inc. (Communications Equip.) | 6,836 | 226,272 | ||||||||||
PTC, Inc. (Software) | (a | ) | 22,092 | 1,831,427 | ||||||||
Sabre Corp. (IT Svs.) | 56,944 | 1,232,268 | ||||||||||
Science Applications International Corp. (IT Svs.) | 8,803 | 560,751 | ||||||||||
Silicon Laboratories, Inc. (Semiconductors & Equip.) | (a | ) | 8,930 | 703,773 | ||||||||
Synaptics, Inc. (Semiconductors & Equip.) | (a | ) | 7,164 | 266,572 | ||||||||
SYNNEX Corp. (Electronic Equip., Instr. & Comp.) | 8,575 | 693,203 | ||||||||||
Tech Data Corp. (Electronic Equip., Instr. & Comp.) | (a | ) | 7,722 | 631,737 | ||||||||
Teradata Corp. (Software) | (a | ) | 24,459 | 938,247 | ||||||||
Teradyne, Inc. (Semiconductors & Equip.) | 37,058 | 1,162,880 | ||||||||||
Trimble, Inc. (Electronic Equip., Instr. & Comp.) | (a | ) | 51,946 | 1,709,543 | ||||||||
Tyler Technologies, Inc. (Software) | (a | ) | 8,030 | 1,492,135 | ||||||||
Ultimate Software Group, Inc. / The (Software) | (a | ) | 6,467 | 1,583,574 | ||||||||
Universal Display Corp. (Semiconductors & Equip.) | 8,772 | 820,796 | ||||||||||
Versum Materials, Inc. (Semiconductors & Equip.) | 22,564 | 625,474 | ||||||||||
ViaSat, Inc. (Communications Equip.) | (a | ) | 11,602 | 683,938 | ||||||||
Vishay Intertechnology, Inc. (Electronic Equip., Instr. & Comp.) | 27,339 | 492,375 | ||||||||||
WEX, Inc. (IT Svs.) | (a | ) | 8,913 | 1,248,355 | ||||||||
Zebra Technologies Corp. Class A (Electronic Equip., Instr. & Comp.) | (a | ) | 11,129 | 1,772,071 | ||||||||
|
| |||||||||||
46,740,562 | ||||||||||||
|
| |||||||||||
MATERIALS – 6.6% |
| |||||||||||
Allegheny Technologies, Inc. (Metals & Mining) | (a | ) | 26,008 | 566,194 | ||||||||
AptarGroup, Inc. (Containers & Packaging) | 12,998 | 1,222,722 | ||||||||||
Ashland Global Holdings, Inc. (Chemicals) | 12,930 | 917,513 | ||||||||||
Bemis Co., Inc. (Containers & Packaging) | 18,834 | 864,481 | ||||||||||
Cabot Corp. (Chemicals) | 12,421 | 533,358 | ||||||||||
Carpenter Technology Corp. (Metals & Mining) | 9,802 | 349,049 | ||||||||||
Chemours Co. / The (Chemicals) | 35,401 | 999,016 | ||||||||||
Commercial Metals Co. (Metals & Mining) | 24,341 | 389,943 | ||||||||||
Compass Minerals International, Inc. (Metals & Mining) | 6,998 | 291,747 | ||||||||||
Domtar Corp. (Paper & Forest Products) | 13,015 | 457,217 | ||||||||||
Eagle Materials, Inc. (Construction Materials) | 9,702 | 592,113 | ||||||||||
Greif, Inc. Class A (Containers & Packaging) | 5,354 | 198,687 |
Common Stocks (Continued) | Shares | Value | ||||||||||
MATERIALS (continued) |
| |||||||||||
Louisiana-Pacific Corp. (Paper & Forest Products) | 29,213 | $ | 649,113 | |||||||||
Minerals Technologies, Inc. (Chemicals) | 7,286 | 374,063 | ||||||||||
NewMarket Corp. (Chemicals) | 1,840 | 758,246 | ||||||||||
Olin Corp. (Chemicals) | 34,527 | 694,338 | ||||||||||
Owens-Illinois, Inc. (Containers & Packaging) | (a | ) | 32,819 | 565,799 | ||||||||
PolyOne Corp. (Chemicals) | 16,497 | 471,814 | ||||||||||
Reliance Steel & Aluminum Co. (Metals & Mining) | 14,575 | 1,037,303 | ||||||||||
Royal Gold, Inc. (Metals & Mining) | 13,556 | 1,161,071 | ||||||||||
RPM International, Inc. (Chemicals) | 27,452 | 1,613,628 | ||||||||||
ScottsMiracle-Gro Co. / The (Chemicals) | 8,124 | 499,301 | ||||||||||
Sensient Technologies Corp. (Chemicals) | 8,747 | 488,520 | ||||||||||
Silgan Holdings, Inc. (Containers & Packaging) | 16,014 | 378,251 | ||||||||||
Sonoco Products Co. (Containers & Packaging) | 20,653 | 1,097,294 | ||||||||||
Steel Dynamics, Inc. (Metals & Mining) | 47,472 | 1,426,059 | ||||||||||
United States Steel Corp. (Metals & Mining) | 36,682 | 669,080 | ||||||||||
Valvoline, Inc. (Chemicals) | 38,935 | 753,392 | ||||||||||
Worthington Industries, Inc. (Metals & Mining) | 8,312 | 289,590 | ||||||||||
|
| |||||||||||
20,308,902 | ||||||||||||
|
| |||||||||||
REAL ESTATE – 9.7% |
| |||||||||||
Alexander & Baldwin, Inc. (Equity REIT) | (a | ) | 13,990 | 257,136 | ||||||||
American Campus Communities, Inc. (Equity REIT) | 28,355 | 1,173,613 | ||||||||||
Camden Property Trust (Equity REIT) | 19,263 | 1,696,107 | ||||||||||
CoreCivic, Inc. (Equity REIT) | 24,557 | 437,851 | ||||||||||
CoreSite Realty Corp. (Equity REIT) | 7,594 | 662,425 | ||||||||||
Corporate Office Properties Trust (Equity REIT) | 22,500 | 473,175 | ||||||||||
Cousins Properties, Inc. (Equity REIT) | 86,867 | 686,249 | ||||||||||
CyrusOne, Inc. (Equity REIT) | 21,900 | 1,158,072 | ||||||||||
Douglas Emmett, Inc. (Equity REIT) | 33,406 | 1,140,147 | ||||||||||
EPR Properties (Equity REIT) | 15,383 | 984,974 | ||||||||||
First Industrial Realty Trust, Inc. (Equity REIT) | 26,136 | 754,285 | ||||||||||
GEO Group, Inc. / The (Equity REIT) | 25,202 | 496,479 | ||||||||||
Healthcare Realty Trust, Inc. (Equity REIT) | 25,914 | 736,994 | ||||||||||
Highwoods Properties, Inc. (Equity REIT) | 21,414 | 828,508 | ||||||||||
Hospitality Properties Trust (Equity REIT) | 34,027 | 812,565 | ||||||||||
JBG SMITH Properties (Equity REIT) | 22,519 | 783,886 | ||||||||||
Jones Lang LaSalle, Inc. (Real Estate Mgmt. & Development) | 9,423 | 1,192,952 | ||||||||||
Kilroy Realty Corp. (Equity REIT) | 20,847 | 1,310,859 | ||||||||||
Lamar Advertising Co. Class A (Equity REIT) | 17,598 | 1,217,430 | ||||||||||
Liberty Property Trust (Equity REIT) | 30,569 | 1,280,230 | ||||||||||
Life Storage, Inc. (Equity REIT) | 9,643 | 896,703 | ||||||||||
Mack-Cali Realty Corp. (Equity REIT) | 18,668 | 365,706 | ||||||||||
Medical Properties Trust, Inc. (Equity REIT) | 75,518 | 1,214,329 | ||||||||||
National Retail Properties, Inc. (Equity REIT) | 32,913 | 1,596,610 | ||||||||||
Omega Healthcare Investors, Inc. (Equity REIT) | 41,508 | 1,459,006 | ||||||||||
Pebblebrook Hotel Trust (Equity REIT) | 26,489 | 749,904 | ||||||||||
PotlatchDeltic Corp. (Equity REIT) | 13,982 | 442,390 | ||||||||||
Rayonier, Inc. (Equity REIT) | 26,790 | 741,815 | ||||||||||
Realogy Holdings Corp. (Real Estate Mgmt. & Development) | 24,448 | 358,897 | ||||||||||
Sabra Health Care REIT, Inc. (Equity REIT) | 36,890 | 607,947 | ||||||||||
Senior Housing Properties Trust (Equity REIT) | 49,190 | 576,507 | ||||||||||
Tanger Factory Outlet Centers, Inc. (Equity REIT) | 19,409 | 392,450 | ||||||||||
Taubman Centers, Inc. (Equity REIT) | 12,635 | 574,766 | ||||||||||
Uniti Group, Inc. (Equity REIT) | (a | ) | 37,035 | 576,635 | ||||||||
Urban Edge Properties (Equity REIT) | 23,648 | 393,030 | ||||||||||
Weingarten Realty Investors (Equity REIT) | 24,693 | 612,633 | ||||||||||
|
| |||||||||||
29,643,265 | ||||||||||||
|
| |||||||||||
UTILITIES – 5.6% | ||||||||||||
ALLETE, Inc. (Electric Utilities) | 10,641 | 811,057 | ||||||||||
Aqua America, Inc. (Water Utilities) | 36,821 | 1,258,910 | ||||||||||
Atmos Energy Corp. (Gas Utilities) | 24,168 | 2,240,857 | ||||||||||
Black Hills Corp. (Multi-Utilities) | 11,169 | 701,190 |
91 | (continued) |
Ohio National Fund, Inc. | ON S&P MidCap 400® Index Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||
UTILITIES (continued) | ||||||||
Hawaiian Electric Industries, Inc. (Electric Utilities) | 22,531 | $ | 825,085 | |||||
IDACORP, Inc. (Electric Utilities) | 10,428 | 970,430 | ||||||
MDU Resources Group, Inc. (Multi-Utilities) | 40,561 | 966,974 | ||||||
National Fuel Gas Co. (Gas Utilities) | 17,788 | 910,390 | ||||||
New Jersey Resources Corp. (Gas Utilities) | 18,314 | 836,400 | ||||||
NorthWestern Corp. (Multi-Utilities) | 10,412 | 618,889 | ||||||
OGE Energy Corp. (Electric Utilities) | 41,302 | 1,618,625 | ||||||
ONE Gas, Inc. (Gas Utilities) | 10,869 | 865,173 | ||||||
PNM Resources, Inc. (Electric Utilities) | 16,482 | 677,245 | ||||||
Southwest Gas Holdings, Inc. (Gas Utilities) | 10,967 | 838,976 | ||||||
UGI Corp. (Gas Utilities) | 35,959 | 1,918,413 | ||||||
Vectren Corp. (Multi-Utilities) | 17,190 | 1,237,336 | ||||||
|
| |||||||
17,295,950 | ||||||||
|
| |||||||
Total Common Stocks (Cost $356,050,770) |
| $ | 306,369,193 | |||||
|
|
Money Market Funds – 0.0% | Shares | Value | ||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (b | ) | 87,501 | $ | 87,493 | |||||||
|
| |||||||||||
Total Money Market Funds | $ | 87,493 | ||||||||||
|
| |||||||||||
Total Investments – 99.9% | (c | ) | $ | 306,456,686 | ||||||||
Other Assets in Excess of | (d | ) | 181,171 | |||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 306,637,857 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Non-income producing security. |
(b) | Rate represents theseven-day yield at December 31, 2018. |
(c) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
(d) | Includes $16,400 of cash pledged as collateral for the futures contracts outstanding at December 31, 2018. See also the following Schedule of Open Futures Contracts. |
The accompanying notes are an integral part of these financial statements.
Schedule of Open Futures Contracts | December 31, 2018 |
Description | Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable (Payable) | ||||||
CMEE-mini S&P MidCap 400 Index - Long | 2 | March 15, 2019 | $334,356 | $332,440 | $(1,916) | $90,927 |
The accompanying notes are an integral part of these financial statements.
92 |
Ohio National Fund, Inc. | ON Bristol Growth Portfolio (Unaudited) |
Objective/Strategy |
The ON Bristol Growth Portfolio (formerly the Bristol Growth Portfolio) seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in common stocks of the 1,000 largest publicly traded U.S. companies in terms of market capitalization.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -14.88% | |||
Five years | 7.09% | |||
Ten years | 13.09% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 0.88% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Bristol Growth Portfolio returned-14.88% versus-1.51% for its benchmark, the Russell 1000 Growth Index.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For security selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.Stock selection was the primary detractor. Specifically, stock selection in Consumer Discretionary and Health Care accounted for over half of the relative underperformance.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Top contributors included Amazon.com, Inc. (“Amazon”), Xilinx, Inc. (“Xilinx“) and The Boeing Co. (“Boeing”). Amazon had several significant accomplishments in 2018 – it successfully executed the launch of its new GO checkout-less store concept,re-accelerated growth in its public cloud computing business (Amazon Web Services), and significantly exceeded profit expectations, as investments in past years to optimize costs yielded positive results. Xilinx beat its revenue growth outlook significantly, due to earlier 5G wireless network buildouts, as well as a gain in market share from Intel Corp. for data-center acceleration opportunities. Despite well-known supplier issues, Boeing significantly exceeded its free cash flow outlook for the year. Additionally, the company made progress in executing its long-term growth strategy, via acquisitions and contract wins.(1)
Top detractors included Evoqua Water Technologies Corp. The company missed earnings twice. Initially, it was thought to be aone-time event, but the second miss was driven by significantly higher costs and a revenue shortfall. The company’s highly leveraged balance sheet was also a driver for underperformance. With Sage Therapeutics, Inc. (“Sage”), another top detractor, the Food and Drug Administration delayed its approval decision for Sage’s post-partum-depression drug to early 2019 in order to allow Sage to complete the development of a safety program for the drug. PVH Corp. missed profit expectations in its Calvin Klein division due to weaker demand for its new jeans and fashion designs.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Russell 1000 Growth Index is a market-capitalization weighted index of those firms in the Russell 1000 Index with higherprice-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of thelarge-cap segment of the U.S. equity universe. The index presented includes the effects of reinvested dividends.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
93 | (continued) |
Ohio National Fund, Inc. | ON Bristol Growth Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||
Common Stocks(4) | 96.7 | |
Master Limited Partnerships(4) | 2.3 | |
Other Net Assets | 1.0 | |
| ||
100.0 | ||
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||||
1. | Microsoft Corp. | 5.0 | ||||||
2. | Alphabet, Inc. Class C | 4.9 | ||||||
3. | Amazon.com, Inc. | 4.2 | ||||||
4. | Apple, Inc. | 4.2 | ||||||
5. | Marvell Technology Group Ltd. | 3.1 | ||||||
6. | Celgene Corp. | 2.6 | ||||||
7. | Boeing Co. / The | 2.5 | ||||||
8. | KLA-Tencor Corp. | 2.5 | ||||||
9. | Applied Materials, Inc. | 2.5 | ||||||
10. | Blackstone Group LP / The | 2.3 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Master Limited Partnerships): |
% of Net Assets | ||||
Information Technology | 23.8 | |||
Industrials | 22.1 | |||
Consumer Discretionary | 20.4 | |||
Communication Services | 13.5 | |||
Health Care | 8.6 | |||
Financials | 6.1 | |||
Consumer Staples | 2.5 | |||
Materials | 2.0 | |||
|
| |||
99.0 | ||||
|
|
94 |
Ohio National Fund, Inc. | ON Bristol Growth Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 96.7% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 13.5% |
| |||||||||||
Alphabet, Inc. Class A (Interactive Media & Svs.) | (a) | 677 | $ | 707,438 | ||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a) | 4,139 | 4,286,390 | |||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 63,797 | 1,820,766 | ||||||||||
Facebook, Inc. Class A (Interactive Media & Svs.) | (a) | 10,722 | 1,405,547 | |||||||||
Lions Gate Entertainment Corp. Class A (Entertainment) | 107,876 | 1,736,804 | ||||||||||
Walt Disney Co. / The (Entertainment) | 17,140 | 1,879,401 | ||||||||||
|
| |||||||||||
11,836,346 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 20.4% |
| |||||||||||
Alibaba Group Holding Ltd. – ADR (Internet & Direct Marketing Retail) | (a) | 13,208 | 1,810,421 | |||||||||
Amazon.com, Inc. (Internet & Direct Marketing Retail) | (a) | 2,464 | 3,700,854 | |||||||||
General Motors Co. (Automobiles) | 50,769 | 1,698,223 | ||||||||||
Lowe’s Cos., Inc. (Specialty Retail) | 18,430 | 1,702,195 | ||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 73,371 | 1,779,980 | ||||||||||
PVH Corp. (Textiles, Apparel & Luxury Goods) | 18,006 | 1,673,658 | ||||||||||
Royal Caribbean Cruises Ltd. (Hotels, Restaurants & Leisure) | 19,913 | 1,947,292 | ||||||||||
Tapestry, Inc. (Textiles, Apparel & Luxury Goods) | 51,286 | 1,730,902 | ||||||||||
Tiffany & Co. (Specialty Retail) | 21,888 | 1,762,203 | ||||||||||
|
| |||||||||||
17,805,728 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 2.5% |
| |||||||||||
PepsiCo, Inc. (Beverages) | 16,120 | 1,780,938 | ||||||||||
Walmart, Inc. (Food & Staples Retailing) | 4,721 | 439,761 | ||||||||||
|
| |||||||||||
2,220,699 | ||||||||||||
|
| |||||||||||
FINANCIALS – 3.8% | ||||||||||||
Citigroup, Inc. (Banks) | 32,752 | 1,705,069 | ||||||||||
Goldman Sachs Group, Inc. / The (Capital Markets) | 9,656 | 1,613,035 | ||||||||||
|
| |||||||||||
3,318,104 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 8.6% | ||||||||||||
Aerie Pharmaceuticals, Inc. (Pharmaceuticals) | (a) | 40,756 | 1,471,292 | |||||||||
Celgene Corp. (Biotechnology) | (a) | 34,724 | 2,225,461 | |||||||||
Sage Therapeutics, Inc. (Biotechnology) | (a) | 19,427 | 1,860,912 | |||||||||
Thermo Fisher Scientific, Inc. (Life Sciences Tools & Svs.) | 8,671 | 1,940,483 | ||||||||||
|
| |||||||||||
7,498,148 | ||||||||||||
|
|
Common Stocks (Continued) | Shares | Value | ||||||||||
INDUSTRIALS – 22.1% | ||||||||||||
AECOM (Construction & Engineering) | (a) | 65,230 | $ | 1,728,595 | ||||||||
Boeing Co. / The (Aerospace & Defense) | 6,882 | 2,219,445 | ||||||||||
Caterpillar, Inc. (Machinery) | 9,122 | 1,159,133 | ||||||||||
Deere & Co. (Machinery) | 12,437 | 1,855,227 | ||||||||||
Delta Air Lines, Inc. (Airlines) | 38,031 | 1,897,747 | ||||||||||
FedEx Corp. (Air Freight & Logistics) | 11,185 | 1,804,476 | ||||||||||
Lockheed Martin Corp. (Aerospace & Defense) | 6,538 | 1,711,910 | ||||||||||
Quanta Services, Inc. (Construction & Engineering) | 57,000 | 1,715,700 | ||||||||||
Raytheon Co. (Aerospace & Defense) | 10,898 | 1,671,208 | ||||||||||
Rockwell Automation, Inc. (Electrical Equip.) | 11,895 | 1,789,960 | ||||||||||
XPO Logistics, Inc. (Air Freight & Logistics) | (a) | 31,734 | 1,810,107 | |||||||||
|
| |||||||||||
19,363,508 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 23.8% |
| |||||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 23,151 | 3,651,839 | ||||||||||
Applied Materials, Inc. (Semiconductors & Equip.) | 66,424 | 2,174,722 | ||||||||||
Broadcom, Inc. (Semiconductors & Equip.) | 4,212 | 1,071,027 | ||||||||||
DXC Technology Co. (IT Svs.) | 32,590 | 1,732,810 | ||||||||||
KLA-Tencor Corp. (Semiconductors & Equip.) | 24,421 | 2,185,435 | ||||||||||
Marvell Technology Group Ltd. (Semiconductors & Equip.) | 166,744 | 2,699,585 | ||||||||||
Microchip Technology, Inc. (Semiconductors & Equip.) | 16,606 | 1,194,304 | ||||||||||
Microsoft Corp. (Software) | 42,981 | 4,365,580 | ||||||||||
QUALCOMM, Inc. (Semiconductors & Equip.) | 30,887 | 1,757,779 | ||||||||||
|
| |||||||||||
20,833,081 | ||||||||||||
|
| |||||||||||
MATERIALS – 2.0% | ||||||||||||
FMC Corp. (Chemicals) | 23,530 | 1,740,279 | ||||||||||
|
| |||||||||||
Total Common Stocks | $ | 84,615,893 | ||||||||||
|
| |||||||||||
Master Limited Partnerships – 2.3% | Shares | Value | ||||||||||
FINANCIALS – 2.3% | ||||||||||||
Blackstone Group LP / The (Capital Markets) | 67,865 | $ | 2,023,056 | |||||||||
|
| |||||||||||
Total Master Limited Partnerships | $ | 2,023,056 | ||||||||||
|
| |||||||||||
Total Investments – 99.0% | (b) | $ | 86,638,949 | |||||||||
Other Assets in Excess of Liabilities – 1.0% | 835,759 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 87,474,708 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Abbreviations:
ADR: | American Depositary Receipts |
Footnotes:
(a) | Non-income producing security. |
(b) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
95
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Unaudited) |
Objective/Strategy |
The ON Risk Managed Balanced Portfolio (formerly the Risk Managed Balanced Portfolio) seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The Portfolio invests in a balanced portfolio of equity and fixed-income securities (the “Balanced Component”) and a risk management portfolio intended to enhance the risk adjusted return of the Portfolio (the “Risk Management Component”).
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -0.77% | |||
Since inception (5/1/14) | 5.68% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total expense ratio is 1.02% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights.
Comments fromSub-Advisers |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Risk Managed Balanced Portfolio returned-0.77% versus-4.38% for its benchmark, the S&P 500 Index. The Portfolio’s secondary benchmark, which is comprised of 55% S&P 500 Index and 45% Bloomberg Barclays U.S. Aggregate Bond Index, returned-2.12% for the period.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.The Portfolio outperformed the S&P 500 Index during the year. Fixed income outperformed equities during the period, and the Portfolio’s allocation to fixed income securities was a large driver of the outperformance. For the first three quarters of the period, more than 60% of the Portfolio was invested in equity securities. We decreased the equity weighting during the fourth quarter to end December at approximately 57%. While we are still identifying and seeking to take advantage of equity opportunities, we have adjusted the Portfolio to be in line with our moreneutral-to-cautious outlook on the equity markets. Ourquarter-end allocation reflects our view that the return/risktrade-off in equities is nearly neutral, relative to fixed income. The equity allocation will continue to be dynamic based on market conditions and the investment opportunities our teams identify across asset classes.
Specific to the fixed income sleeve, relative to the Bloomberg Barclays U.S. Aggregate Bond Index, ourout-of-index allocation to high-yield corporate credit was the primary driver of underperformance, given dramatic spread widening in the asset class. We seek higher-quality high-yield names, with consistent free-cash-flow generation potential and management teams committed to paying down debt, but even those names were challenged late in the period. Ourout-of-index exposure to
bank loans further weighed on relative performance. Our allocation to mortgage-backed securities (“MBS”) contributed to the sleeve’s relative performance, as the asset class was one of the strongest-performing fixed income segments, with relatively better liquidity than corporate credit. Our significant reduction in investment-grade corporate credit throughout the year also proved beneficial, given the overall spread widening in the asset class.
Q. How did sector allocation and security selection each impact the Portfolio’s performance relative to its benchmark? For sector allocation, were there any factors that impacted the benchmark’s performance more significantly than the Portfolio’s performance? For stock selection, was there anything specific regarding the Portfolio’s strategy that caused deviation from the benchmark?
A.In the equity sleeve, stock selection in Information Technology, Industrials and Health Care aided returns relative to the S&P 500 Index. Stock selection in the Consumer Discretionary and Real Estate sectors detracted from relative performance. In terms of sector allocation, minimal exposure to the Energy sector proved beneficial, given the sector’s poor performance for the year. A zero weight in the relatively strong-performing Utilities sector detracted from relative results.(1)
In the fixed income sleeve, our holdings in pharmaceuticals and health care were among the largest relative contributors versus the Bloomberg Barclays U.S. Aggregate Bond Index. The sectors performed relatively well given their minimal exposure to trade disputes and slowing global growth. Overweight allocations to midstream energy and metals and mining detracted. The former was hampered by intra-period volatility in oil prices, including a severesell-off near period end. U.S.-China trade relations and emerging weakness in the Chinese economy also generated concerns for commodities-related sectors. Overall, security selection had minimal impact on relative performance.(1)
Q. How did the Risk Management Component impact the Portfolio’s performance during the period?
A.The Portfolio’s Risk Management Component,sub-advised by AnchorPath Financial LLC, is a sleeve of derivatives and cash equivalents that seeks to enhance the risk-adjusted return of the Portfolio. Under normal circumstances, the Risk Management Component will represent approximately 20% of the Portfolio. For the calendar year 2018, this allocation ranged between 17.5% and 19.6%, and ended the year representing approximately 18.9% of the Portfolio.(1)
The Portfolio’s performance is enhanced on a risk-adjusted basis when the aggregate Portfolio achieves lower volatility with similar returns, or higher returns at similar volatility compared to a benchmark. For the calendar year 2018, the Risk Management Component did not enhance the risk-adjusted return, as the Portfolio’s return was 1.1% lower than the Balanced Component. The net loss in the Risk Management Component was primarily attributable to losses on index-based options due to the time decay of premium value.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.Largest Equity Contributors:
• | Mastercard, Inc. Class A (“Mastercard”) was one of the Portfolio’s top individual contributors to relative performance. Payments companies like Mastercard continue to benefit as consumers and businesses switch from cash and check to plastic and electronic payments. Mastercard is particularly well positioned to benefit from this shift because a majority of its revenues are generated outside the U.S., where many markets have a lower penetration of card and electronic payments and are experiencing significantly faster electronic purchase volume growth.(1) |
96 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Unaudited) (Continued) |
• | CME Group, Inc. also performed well. The operator of financial exchanges benefited from market volatility and heightened volumes in interest rate and equity futures. CME Group, Inc. also continues to increase its number of customers and use cases, and its acquisition of electronic markets company NEX Group PLC, which closed in November, should eventually be accretive to earnings.(1) |
Largest Fixed Income Contributor:
• | Our positioning in Anheuser-Busch was among leading relative contributors in the fixed income sleeve. We exited our position early in the year, as we grew uncomfortable with the return potential of the company’s recent merger and acquisition activity and had growing concerns around the issuer’s intent to increase leverage to compensate its shareholders. We were out of the name well ahead of the dramatic spread widening that followed Moody’s downgrade of the company’s credit rating in the fourth quarter.(1) |
Largest Equity Detractors:
• | Altria Group, Inc. (“Altria”) was the leading relative detractor. The stock was impacted by weaker cigarette volumes and rising excise taxes in California early in the year and by the Food and Drug Administration’s comments that it would explore a potential ban on menthol cigarettes late in the period. We believe Altria’s recent deal withe-cigarette company JUUL Labs, Inc. will ultimately be accretive to earnings and allow it to connect with the best technology in the vaporizing industry.(1) |
• | Synchrony Financial also detracted. We continue to favor the company for its private-label credit card business, where it has an estimated 40% market share. This business line, in our view, is quite stable given the preponderance of long-term contracts with clients.(1) |
Largest Fixed Income Detractor:
• | Freeport-McMoRan, Inc. (“Freeport”) was one of the leading corporate credit detractors. Adrawn-out dispute surrounding the ownership structure of Freeport’s Grasberg mine in Indonesia weighed on the copper miner earlier in the period. Later, balance sheet improvement progress was overshadowed by fears of a slowdown in China coupled with trade war uncertainty, given that China consumes a significant portion of the world’s copper. We appreciate the value of Freeport’s assets and ultimately expect the miner to benefit from limited supply and growing demand for copper – an essential component of electric vehicles – as the electrification of vehicles accelerates.(1) |
Q. How did the Portfolio’s use of derivative instruments and initial public offerings (IPOs), if any, impact overall Portfolio performance?
A.The Risk Management Component detracted 1.1% to the absolute return of the aggregate Portfolio during the period, primarily due to the use of derivative instruments. This was driven mainly by losses on index-based options due to the time decay of premium value, as discussed above.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
Change in Value of $10,000 Investment
|
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The S&P 500 Index is a capitalization-weighted index designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index includes the effects of reinvested dividends.
The Bloomberg Barclays U.S. Aggregate Bond Index measures returns of U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, high quality corporate bonds, mortgage pass-through securities, and asset-backed securities publicly offered for sale in the U.S. The index’s securities must have at least one year remaining to maturity; they must also be denominated in U.S. dollars and must be fixed rate, nonconvertible, and taxable.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
97 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Unaudited) (Continued) |
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Common Stocks(4) | 45.5 | |||
U.S. Treasury Obligations | 14.1 | |||
Corporate Bonds(4) | 8.8 | |||
U.S. Government Agency Mortgage-Backed Securities | 7.8 | |||
Purchased Options | 7.3 | |||
Asset-Backed / Mortgage-Backed Securities(4) | 3.7 | |||
Bank Loans(4) | 0.9 | |||
Master Limited Partnerships(4) | 0.4 | |||
Preferred Securities(4) | 0.2 | |||
Money Market Funds Less Net Liabilities | 11.3 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||||
1. | Microsoft Corp. | 2.7 | ||||||
2. | U.S. Treasury Note 3.125%, 11/15/2028 | 2.6 | ||||||
3. | Mastercard, Inc. Class A | 2.0 | ||||||
4. | Alphabet, Inc. Class C | 1.8 | ||||||
5. | Boeing Co. / The | 1.7 | ||||||
6. | U.S. Treasury Note 2.875%, 10/31/2020 | 1.6 | ||||||
7. | McDonald’s Corp. | 1.5 | ||||||
8. | U.S. Bancorp | 1.4 | ||||||
9. | Altria Group, Inc. | 1.3 | ||||||
10. | U.S. Treasury Note 2.875%, 10/31/2023 | 1.3 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
(4) | Sectors (Common Stocks, Corporate Bonds, Preferred Securities, Asset-Backed / Mortgage Backed Securities, Master Limited Partnerships, Bank Loans): |
% of Net Assets | ||||
Information Technology | 11.4 | |||
Financials | 11.0 | |||
Health Care | 6.9 | |||
Industrials | 6.7 | |||
Consumer Discretionary | 6.4 | |||
Consumer Staples | 5.6 | |||
Communication Services | 4.4 | |||
Energy | 2.5 | |||
Materials | 2.4 | |||
Real Estate | 1.7 | |||
Utilities | 0.5 | |||
|
| |||
59.5 | ||||
|
|
98
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio |
Schedule of Investments | December 31, 2018 |
Common Stocks – 45.5% | Shares | Value | ||||||||||
COMMUNICATION SERVICES – 3.1% | ||||||||||||
Activision Blizzard, Inc. (Entertainment) | 11,900 | $ | 554,183 | |||||||||
Alphabet, Inc. Class C (Interactive Media & Svs.) | (a | ) | 5,935 | 6,146,345 | ||||||||
Comcast Corp. Class A (Media) | 105,134 | 3,579,813 | ||||||||||
Madison Square Garden Co. / The Class A (Entertainment) | (a | ) | 1,438 | 384,953 | ||||||||
|
| |||||||||||
10,665,294 | ||||||||||||
|
| |||||||||||
CONSUMER DISCRETIONARY – 5.5% | ||||||||||||
General Motors Co. (Automobiles) | 66,724 | 2,231,918 | ||||||||||
Hasbro, Inc. (Leisure Products) | 15,455 | 1,255,719 | ||||||||||
Hilton Worldwide Holdings, Inc. (Hotels, Restaurants & Leisure) | 21,776 | 1,563,517 | ||||||||||
Home Depot, Inc. / The (Specialty Retail) | 25,374 | 4,359,760 | ||||||||||
McDonald’s Corp. (Hotels, Restaurants & Leisure) | 30,197 | 5,362,081 | ||||||||||
NIKE, Inc. Class B (Textiles, Apparel & Luxury Goods) | 37,321 | 2,766,979 | ||||||||||
Norwegian Cruise Line Holdings Ltd. (Hotels, Restaurants & Leisure) | (a | ) | 17,934 | 760,222 | ||||||||
Six Flags Entertainment Corp. (Hotels, Restaurants & Leisure) | 16,244 | 903,654 | ||||||||||
|
| |||||||||||
19,203,850 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES – 5.3% | ||||||||||||
Altria Group, Inc. (Tobacco) | 94,318 | 4,658,366 | ||||||||||
Clorox Co. / The (Household Products) | 7,169 | 1,105,030 | ||||||||||
Costco Wholesale Corp. (Food & Staples Retailing) | 21,581 | 4,396,266 | ||||||||||
Estee Lauder Cos., Inc. / The Class A (Personal Products) | 14,875 | 1,935,237 | ||||||||||
Hershey Co. / The (Food Products) | 13,704 | 1,468,795 | ||||||||||
Kroger Co. / The (Food & Staples Retailing) | 71,947 | 1,978,542 | ||||||||||
Sysco Corp. (Food & Staples Retailing) | 44,906 | 2,813,810 | ||||||||||
|
| |||||||||||
18,356,046 | ||||||||||||
|
| |||||||||||
ENERGY – 1.2% | ||||||||||||
Anadarko Petroleum Corp. (Oil, Gas & Consumable Fuels) | 38,744 | 1,698,537 | ||||||||||
Suncor Energy, Inc. (Oil, Gas & Consumable Fuels) | 87,209 | 2,439,236 | ||||||||||
|
| |||||||||||
4,137,773 | ||||||||||||
|
| |||||||||||
FINANCIALS – 5.3% | ||||||||||||
American Express Co. (Consumer Finance) | 15,925 | 1,517,971 | ||||||||||
Bank of America Corp. (Banks) | 67,627 | 1,666,329 | ||||||||||
CME Group, Inc. (Capital Markets) | 17,210 | 3,237,545 | ||||||||||
Morgan Stanley (Capital Markets) | 28,830 | 1,143,109 | ||||||||||
Progressive Corp. / The (Insurance) | 25,541 | 1,540,889 | ||||||||||
Synchrony Financial (Consumer Finance) | 85,273 | 2,000,505 | ||||||||||
TD Ameritrade Holding Corp. (Capital Markets) | 52,223 | 2,556,838 | ||||||||||
U.S. Bancorp (Banks) | 107,173 | 4,897,806 | ||||||||||
|
| |||||||||||
18,560,992 | ||||||||||||
|
| |||||||||||
HEALTH CARE – 6.0% | ||||||||||||
Abbott Laboratories (Health Care Equip. & Supplies) | 42,040 | 3,040,753 | ||||||||||
AbbVie, Inc. (Biotechnology) | 27,337 | 2,520,198 | ||||||||||
Allergan PLC (Pharmaceuticals) | 11,524 | 1,540,298 | ||||||||||
Bristol-Myers Squibb Co. (Pharmaceuticals) | 20,445 | 1,062,731 | ||||||||||
Eli Lilly & Co. (Pharmaceuticals) | 28,986 | 3,354,260 | ||||||||||
Medtronic PLC (Health Care Equip. & Supplies) | 26,558 | 2,415,716 | ||||||||||
Merck & Co., Inc. (Pharmaceuticals) | 59,178 | 4,521,791 | ||||||||||
UnitedHealth Group, Inc. (Health Care Providers & Svs.) | 9,375 | 2,335,500 | ||||||||||
|
| |||||||||||
20,791,247 | ||||||||||||
|
| |||||||||||
INDUSTRIALS – 6.0% | ||||||||||||
Boeing Co. / The (Aerospace & Defense) | 17,926 | 5,781,135 | ||||||||||
CSX Corp. (Road & Rail) | 59,289 | 3,683,625 | ||||||||||
Deere & Co. (Machinery) | 11,004 | 1,641,467 | ||||||||||
Delta Air Lines, Inc. (Airlines) | 27,353 | 1,364,915 | ||||||||||
General Dynamics Corp. (Aerospace & Defense) | 24,208 | 3,805,739 | ||||||||||
Honeywell International, Inc. (Industrial Conglomerates) | 9,864 | 1,303,232 | ||||||||||
Parker-Hannifin Corp. (Machinery) | 5,577 | 831,754 | ||||||||||
Stanley Black & Decker, Inc. (Machinery) | 9,202 | 1,101,847 | ||||||||||
United Parcel Service, Inc. Class B (Air Freight & Logistics) | 14,449 | 1,409,211 | ||||||||||
|
| |||||||||||
20,922,925 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY – 10.7% | ||||||||||||
Accenture PLC Class A (IT Svs.) | 21,764 | 3,068,942 | ||||||||||
Adobe Systems, Inc. (Software) | (a | ) | 15,335 | 3,469,390 | ||||||||
Apple, Inc. (Tech. Hardware, Storage & Periph.) | 28,660 | 4,520,828 |
99 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Common Stocks (Continued) | Shares | Value | ||||||||||
INFORMATION TECHNOLOGY (continued) | ||||||||||||
Corning, Inc. (Electronic Equip., Instr. & Comp.) | 47,800 | $ | 1,444,038 | |||||||||
Intel Corp. (Semiconductors & Equip.) | 74,976 | 3,518,624 | ||||||||||
Lam Research Corp. (Semiconductors & Equip.) | 12,193 | 1,660,321 | ||||||||||
Mastercard, Inc. Class A (IT Svs.) | 36,427 | 6,871,954 | ||||||||||
Microsoft Corp. (Software) | 91,560 | 9,299,749 | ||||||||||
NVIDIA Corp. (Semiconductors & Equip.) | 3,315 | 442,552 | ||||||||||
salesforce.com, Inc. (Software) | (a) | 6,173 | 845,516 | |||||||||
Texas Instruments, Inc. (Semiconductors & Equip.) | 21,937 | 2,073,046 | ||||||||||
|
| |||||||||||
37,214,960 | ||||||||||||
|
| |||||||||||
MATERIALS – 1.1% | ||||||||||||
LyondellBasell Industries N.V. Class A (Chemicals) | 45,516 | 3,785,110 | ||||||||||
|
| |||||||||||
REAL ESTATE – 1.3% | ||||||||||||
CBRE Group, Inc. Class A (Real Estate Mgmt. & Development) | (a) | 37,315 | 1,494,093 | |||||||||
Crown Castle International Corp. (Equity REIT) | 13,608 | 1,478,237 | ||||||||||
MGM Growth Properties LLC Class A (Equity REIT) | 26,869 | 709,610 | ||||||||||
Outfront Media, Inc. (Equity REIT) | 37,214 | 674,318 | ||||||||||
|
| |||||||||||
4,356,258 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $135,182,183) | $ | 157,994,455 | ||||||||||
|
|
U.S. Treasury Obligations – 14.1% | Rate | Maturity | Face Amount | Value | ||||||||||||||||
U.S. Treasury Note | 2.750% | 09/30/2020 | $ | 1,904,000 | $ | 1,910,871 | ||||||||||||||
U.S. Treasury Note | 2.875% | 10/31/2020 | 5,472,000 | 5,505,299 | ||||||||||||||||
U.S. Treasury Note | 2.875% | 10/15/2021 | 833,000 | 841,712 | ||||||||||||||||
U.S. Treasury Note | 2.750% | 05/31/2023 | 3,826,000 | 3,867,710 | ||||||||||||||||
U.S. Treasury Note | 2.875% | 09/30/2023 | 3,107,000 | 3,157,370 | ||||||||||||||||
U.S. Treasury Note | 2.875% | 10/31/2023 | 4,469,000 | 4,543,145 | ||||||||||||||||
U.S. Treasury Note | 2.875% | 11/30/2023 | 587,000 | 597,191 | ||||||||||||||||
U.S. Treasury Note | (b | ) | 2.250% | 11/15/2024 | 1,865,000 | 1,833,022 | ||||||||||||||
U.S. Treasury Note | 2.875% | 11/30/2025 | 2,000 | 2,037 | ||||||||||||||||
U.S. Treasury Note | 2.875% | 08/15/2028 | 3,787,000 | 3,848,256 | ||||||||||||||||
U.S. Treasury Note | 3.125% | 11/15/2028 | 8,876,000 | 9,212,884 | ||||||||||||||||
U.S. Treasury Note | 2.250% | 08/15/2046 | 384,000 | 328,808 | ||||||||||||||||
U.S. Treasury Note | 2.750% | 08/15/2047 | 46,000 | 43,644 | ||||||||||||||||
U.S. Treasury Note | 2.750% | 11/15/2047 | 3,629,000 | 3,439,942 | ||||||||||||||||
U.S. Treasury Note | 3.000% | 02/15/2048 | 1,694,000 | 1,687,880 | ||||||||||||||||
U.S. Treasury Note | 3.125% | 05/15/2048 | 558,000 | 569,574 | ||||||||||||||||
U.S. Treasury Note | 3.000% | 08/15/2048 | 3,291,000 | 3,281,107 | ||||||||||||||||
U.S. Treasury Note | 3.375% | 11/15/2048 | 4,076,000 | 4,366,082 | ||||||||||||||||
|
| |||||||||||||||||||
Total U.S. Treasury Obligations (Cost $48,061,121) | $ | 49,036,534 | ||||||||||||||||||
|
| |||||||||||||||||||
Corporate Bonds – 8.8% | Rate | Maturity | Face Amount | Value | ||||||||||||||||
COMMUNICATION SERVICES – 1.2% | ||||||||||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 5.250% | 03/01/2037 | $ | 74,000 | $ | 72,745 | ||||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 4.750% | 05/15/2046 | 208,000 | 185,124 | ||||||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 5.150% | 11/15/2046 | 165,000 | 153,525 | ||||||||||||||||
AT&T, Inc. (Diversified Telecom. Svs.) | 4.500% | 03/09/2048 | 199,000 | 171,573 | ||||||||||||||||
BellSouth LLC (Diversified Telecom. Svs.) | (c | ) | 4.333% | 04/26/2019 | 564,000 | 565,771 | ||||||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. (Media) | 5.250% | 03/15/2021 | 173,000 | 173,108 | ||||||||||||||||
Comcast Corp. (Media) | 3.150% | 03/01/2026 | 146,000 | 139,764 | ||||||||||||||||
Comcast Corp. (Media) | 4.150% | 10/15/2028 | 121,000 | 122,943 | ||||||||||||||||
Comcast Corp. (Media) | 4.250% | 10/15/2030 | 189,000 | 191,273 | ||||||||||||||||
Comcast Corp. (Media) | 4.600% | 10/15/2038 | 153,000 | 154,670 | ||||||||||||||||
Comcast Corp. (Media) | 4.950% | 10/15/2058 | 158,000 | 160,879 | ||||||||||||||||
T-Mobile U.S.A., Inc. (Wireless Telecom. Svs.) | 6.375% | 03/01/2025 | 370,000 | 374,610 | ||||||||||||||||
UBM PLC (Media) | (c | ) | 5.750% | 11/03/2020 | 108,000 | 110,585 | ||||||||||||||
Unitymedia GmbH (Media) | (c | ) | 6.125% | 01/15/2025 | 321,000 | 322,573 | ||||||||||||||
Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH (Media) | (c | ) | 5.000% | 01/15/2025 | 200,000 | 195,400 | ||||||||||||||
Verizon Communications, Inc. (Diversified Telecom. Svs.) | 2.625% | 08/15/2026 | 346,000 | 313,861 | ||||||||||||||||
Verizon Communications, Inc. (Diversified Telecom. Svs.) | 4.329% | 09/21/2028 | 347,000 | 348,641 | ||||||||||||||||
Viacom, Inc. (Entertainment) | 5.850% | 09/01/2043 | 291,000 | 284,747 | ||||||||||||||||
Warner Media LLC (Entertainment) | 3.600% | 07/15/2025 | 170,000 | 161,083 | ||||||||||||||||
|
| |||||||||||||||||||
4,202,875 | ||||||||||||||||||||
|
| |||||||||||||||||||
CONSUMER DISCRETIONARY – 0.5% | ||||||||||||||||||||
D.R. Horton, Inc. (Household Durables) | 3.750 | % | 03/01/2019 | 231,000 | 230,981 | |||||||||||||||
Ford Motor Co. (Automobiles) | 4.346 | % | 12/08/2026 | 183,000 | 163,354 |
100 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||||
CONSUMER DISCRETIONARY (continued) | ||||||||||||||||||||
General Motors Co. (Automobiles) | 5.000% | 10/01/2028 | $ | 235,000 | $ | 222,799 | ||||||||||||||
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp. (Hotels, Restaurants & Leisure) | 4.625% | 04/01/2025 | 25,000 | 23,688 | ||||||||||||||||
MDC Holdings, Inc. (Household Durables) | 5.500% | 01/15/2024 | 53,000 | 50,880 | ||||||||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 6.750% | 10/01/2020 | �� | 303,000 | 311,332 | |||||||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 6.625% | 12/15/2021 | 123,000 | 126,075 | ||||||||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 7.750% | 03/15/2022 | 44,000 | 46,805 | ||||||||||||||||
MGM Resorts International (Hotels, Restaurants & Leisure) | 6.000% | 03/15/2023 | 22,000 | 22,110 | ||||||||||||||||
Toll Brothers Finance Corp. (Household Durables) | 5.875% | 02/15/2022 | 144,000 | 144,720 | ||||||||||||||||
Toll Brothers Finance Corp. (Household Durables) | 4.375% | 04/15/2023 | 63,000 | 59,062 | ||||||||||||||||
Wyndham Destinations, Inc. (Hotels, Restaurants & Leisure) | 5.400% | 04/01/2024 | 108,000 | 102,870 | ||||||||||||||||
Wyndham Destinations, Inc. (Hotels, Restaurants & Leisure) | 6.350% | 10/01/2025 | 32,000 | 31,040 | ||||||||||||||||
|
| |||||||||||||||||||
1,535,716 | ||||||||||||||||||||
|
| |||||||||||||||||||
CONSUMER STAPLES – 0.3% | ||||||||||||||||||||
Campbell Soup Co. (Food Products) | 3.950% | 03/15/2025 | 148,000 | 141,852 | ||||||||||||||||
Campbell Soup Co. (Food Products) | 4.150% | 03/15/2028 | 221,000 | 205,869 | ||||||||||||||||
Campbell Soup Co. (Food Products) | 4.800% | 03/15/2048 | 516,000 | 437,595 | ||||||||||||||||
Reckson Operating Partnership LP (Household Products) | 7.750% | 03/15/2020 | 237,000 | 247,966 | ||||||||||||||||
Sysco Corp. (Food & Staples Retailing) | 2.500% | 07/15/2021 | 73,000 | 71,521 | ||||||||||||||||
|
| |||||||||||||||||||
1,104,803 | ||||||||||||||||||||
|
| |||||||||||||||||||
ENERGY – 1.3% | ||||||||||||||||||||
Cheniere Corpus Christi Holdings LLC (Oil, Gas & Consumable Fuels) | 5.125% | 06/30/2027 | 200,000 | 188,810 | ||||||||||||||||
Cheniere Energy Partners LP (Oil, Gas & Consumable Fuels) | (c | ) | 5.625% | 10/01/2026 | 300,000 | 280,500 | ||||||||||||||
Continental Resources, Inc. (Oil, Gas & Consumable Fuels) | 5.000% | 09/15/2022 | 357,000 | 354,449 | ||||||||||||||||
Continental Resources, Inc. (Oil, Gas & Consumable Fuels) | 4.500% | 04/15/2023 | 295,000 | 290,315 | ||||||||||||||||
Enbridge Energy Partners LP (Oil, Gas & Consumable Fuels) | 5.875% | 10/15/2025 | 91,000 | 98,635 | ||||||||||||||||
Energy Transfer LP (Oil, Gas & Consumable Fuels) | 4.250% | 03/15/2023 | 146,000 | 140,525 | ||||||||||||||||
Energy Transfer LP (Oil, Gas & Consumable Fuels) | 5.875% | 01/15/2024 | 127,000 | 129,652 | ||||||||||||||||
Energy Transfer LP (Oil, Gas & Consumable Fuels) | 5.500% | 06/01/2027 | 98,000 | 95,550 | ||||||||||||||||
Energy Transfer Operating LP (Oil, Gas & Consumable Fuels) | 4.950% | 06/15/2028 | 93,000 | 91,175 | ||||||||||||||||
Energy Transfer Operating LP (Oil, Gas & Consumable Fuels) | 6.125% | 12/15/2045 | 77,000 | 75,390 | ||||||||||||||||
Energy Transfer Operating LP (Oil, Gas & Consumable Fuels) | 6.000% | 06/15/2048 | 344,000 | 335,393 | ||||||||||||||||
EnLink Midstream Partners LP (Oil, Gas & Consumable Fuels) | 4.150% | 06/01/2025 | 278,000 | 250,735 | ||||||||||||||||
EnLink Midstream Partners LP (Oil, Gas & Consumable Fuels) | 4.850% | 07/15/2026 | 355,000 | 320,281 | ||||||||||||||||
EQM Midstream Partners LP (Oil, Gas & Consumable Fuels) | 4.750% | 07/15/2023 | 24,000 | 23,888 | ||||||||||||||||
EQM Midstream Partners LP (Oil, Gas & Consumable Fuels) | 4.000% | 08/01/2024 | 80,000 | 76,537 | ||||||||||||||||
EQM Midstream Partners LP (Oil, Gas & Consumable Fuels) | 5.500% | 07/15/2028 | 346,000 | 339,066 | ||||||||||||||||
Kinder Morgan Energy Partners LP (Oil, Gas & Consumable Fuels) | 5.000% | 10/01/2021 | 304,000 | 312,561 | ||||||||||||||||
Kinder Morgan, Inc. (Oil, Gas & Consumable Fuels) | 4.300% | 03/01/2028 | 24,000 | 23,562 | ||||||||||||||||
Kinder Morgan, Inc. (Oil, Gas & Consumable Fuels) | 5.550% | 06/01/2045 | 66,000 | 65,444 | ||||||||||||||||
Kinder Morgan, Inc. (Oil, Gas & Consumable Fuels) | 5.200% | 03/01/2048 | 44,000 | 42,112 | ||||||||||||||||
Motiva Enterprises LLC (Oil, Gas & Consumable Fuels) | (c | ) | 5.750% | 01/15/2020 | 47,000 | 47,818 | ||||||||||||||
NGPL PipeCo LLC (Oil, Gas & Consumable Fuels) | (c | ) | 4.375% | 08/15/2022 | 248,000 | 243,040 | ||||||||||||||
NGPL PipeCo LLC (Oil, Gas & Consumable Fuels) | (c | ) | 4.875% | 08/15/2027 | 73,000 | 68,803 | ||||||||||||||
NuStar Logistics LP (Oil, Gas & Consumable Fuels) | 5.625% | 04/28/2027 | 147,000 | 137,078 | ||||||||||||||||
Plains All American Pipeline LP (Oil, Gas & Consumable Fuels) | 4.650% | 10/15/2025 | 322,000 | 316,811 | ||||||||||||||||
Plains All American Pipeline LP (Oil, Gas & Consumable Fuels) | 4.500% | 12/15/2026 | 94,000 | 90,587 | ||||||||||||||||
|
| |||||||||||||||||||
4,438,717 | ||||||||||||||||||||
|
| |||||||||||||||||||
FINANCIALS – 1.5% | ||||||||||||||||||||
Bank of America Corp. (Banks) | 2.503% | 10/21/2022 | 849,000 | 817,398 | ||||||||||||||||
CBOE Global Markets, Inc. (Capital Markets) | 3.650% | 01/12/2027 | 267,000 | 260,004 | ||||||||||||||||
Charles Schwab Corp. / The (Capital Markets) | QL + 32 | 05/21/2021 | 167,000 | 166,302 | ||||||||||||||||
Charles Schwab Corp. / The (Capital Markets) | 3.250% | 05/21/2021 | 88,000 | 88,426 | ||||||||||||||||
Citibank NA (Banks) | QL + 32 | 05/01/2020 | 801,000 | 798,230 | ||||||||||||||||
Citizens Financial Group, Inc. (Banks) | 3.750% | 07/01/2024 | 47,000 | 45,757 | ||||||||||||||||
Citizens Financial Group, Inc. (Banks) | 4.350% | 08/01/2025 | 41,000 | 40,275 | ||||||||||||||||
Citizens Financial Group, Inc. (Banks) | 4.300% | 12/03/2025 | 344,000 | 339,649 | ||||||||||||||||
E*TRADE Financial Corp. (Capital Markets) | 2.950% | 08/24/2022 | 263,000 | 255,137 | ||||||||||||||||
E*TRADE Financial Corp. (Capital Markets) | 3.800% | 08/24/2027 | 289,000 | 272,998 | ||||||||||||||||
E*TRADE Financial Corp. (Capital Markets) | 4.500% | 06/20/2028 | 109,000 | 107,476 | ||||||||||||||||
First Republic Bank (Banks) | 4.625% | 02/13/2047 | 100,000 | 96,443 | ||||||||||||||||
Ford Motor Credit Co. LLC (Consumer Finance) | 3.815% | 11/02/2027 | 469,000 | 395,924 | ||||||||||||||||
General Motors Financial Co., Inc. (Consumer Finance) | 4.350% | 01/17/2027 | 107,000 | 98,538 | ||||||||||||||||
JPMorgan Chase & Co. (Banks) | 2.295% | 08/15/2021 | 292,000 | 284,876 | ||||||||||||||||
JPMorgan Chase Bank NA (Banks) | QL + 34 | 04/26/2021 | 287,000 | 284,338 | ||||||||||||||||
JPMorgan Chase Bank NA (Rate is fixed until 04/26/2020, at which point, the rate becomes QL + 35) (Banks) | (d | ) | 3.086% | 04/26/2021 | 251,000 | 249,951 | ||||||||||||||
Morgan Stanley (Capital Markets) | 3.950% | 04/23/2027 | 165,000 | 155,646 |
101 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||||
FINANCIALS (continued) | ||||||||||||||||||||
NextEra Energy Operating Partners LP (Insurance) | (c | ) | 4.250% | 09/15/2024 | $ | 37,000 | $ | 34,225 | ||||||||||||
Raymond James Financial, Inc. (Capital Markets) | 3.625% | 09/15/2026 | 132,000 | 124,458 | ||||||||||||||||
Raymond James Financial, Inc. (Capital Markets) | 4.950% | 07/15/2046 | 236,000 | 227,032 | ||||||||||||||||
SVB Financial Group (Banks) | 5.375% | 09/15/2020 | 139,000 | 143,359 | ||||||||||||||||
|
| |||||||||||||||||||
5,286,442 | ||||||||||||||||||||
|
| |||||||||||||||||||
HEALTH CARE – 0.9% | ||||||||||||||||||||
Aetna, Inc. (Health Care Providers & Svs.) | 2.800% | 06/15/2023 | 127,000 | 120,771 | ||||||||||||||||
Becton Dickinson and Co. (Health Care Equip. & Supplies) | 2.894% | 06/06/2022 | 133,000 | 128,807 | ||||||||||||||||
Centene Corp. (Health Care Providers & Svs.) | �� | 4.750% | 05/15/2022 | 15,000 | 14,813 | |||||||||||||||
Centene Corp. (Health Care Providers & Svs.) | 6.125% | 02/15/2024 | 171,000 | 175,061 | ||||||||||||||||
Centene Corp. (Health Care Providers & Svs.) | 4.750% | 01/15/2025 | 166,000 | 158,530 | ||||||||||||||||
Centene Corp. (Health Care Providers & Svs.) | (c | ) | 5.375% | 06/01/2026 | 428,000 | 416,230 | ||||||||||||||
Cigna Corp. (Health Care Providers & Svs.) | (c | ) | 3.400% | 09/17/2021 | 47,000 | 46,891 | ||||||||||||||
Cigna Corp. (Health Care Providers & Svs.) | (c | ) | 3.750% | 07/15/2023 | 189,000 | 188,359 | ||||||||||||||
Cigna Corp. (Health Care Providers & Svs.) | (c | ) | 4.375% | 10/15/2028 | 91,000 | 91,563 | ||||||||||||||
CVS Health Corp. (Health Care Providers & Svs.) | 4.750% | 12/01/2022 | 120,000 | 123,806 | ||||||||||||||||
CVS Health Corp. (Health Care Providers & Svs.) | 4.100% | 03/25/2025 | 332,000 | 329,086 | ||||||||||||||||
CVS Health Corp. (Health Care Providers & Svs.) | 4.300% | 03/25/2028 | 172,000 | 168,420 | ||||||||||||||||
CVS Health Corp. (Health Care Providers & Svs.) | 5.050% | 03/25/2048 | 163,000 | 158,746 | ||||||||||||||||
Elanco Animal Health, Inc. (Pharmaceuticals) | (c | ) | 3.912% | 08/27/2021 | 44,000 | 44,272 | ||||||||||||||
Elanco Animal Health, Inc. (Pharmaceuticals) | (c | ) | 4.272% | 08/28/2023 | 112,000 | 111,898 | ||||||||||||||
Elanco Animal Health, Inc. (Pharmaceuticals) | (c | ) | 4.900% | 08/28/2028 | 104,000 | 105,890 | ||||||||||||||
HCA, Inc. (Health Care Providers & Svs.) | 5.625% | 09/01/2028 | 216,000 | 208,440 | ||||||||||||||||
Teva Pharmaceutical Finance Co. BV (Pharmaceuticals) | 2.950% | 12/18/2022 | 25,000 | 22,108 | ||||||||||||||||
Teva Pharmaceutical Finance Netherlands III BV (Pharmaceuticals) | 2.800% | 07/21/2023 | 146,000 | 125,734 | ||||||||||||||||
WellCare Health Plans, Inc. (Health Care Providers & Svs.) | 5.250% | 04/01/2025 | 130,000 | 125,125 | ||||||||||||||||
WellCare Health Plans, Inc. (Health Care Providers & Svs.) | (c | ) | 5.375% | 08/15/2026 | 197,000 | 190,105 | ||||||||||||||
|
| |||||||||||||||||||
3,054,655 | ||||||||||||||||||||
|
| |||||||||||||||||||
INDUSTRIALS – 0.6% | ||||||||||||||||||||
Huntington Ingalls Industries, Inc. (Aerospace & Defense) | (c | ) | 5.000% | 11/15/2025 | 429,000 | 435,843 | ||||||||||||||
IHS Markit Ltd. (Professional Svs.) | (c | ) | 5.000% | 11/01/2022 | 26,000 | 26,260 | ||||||||||||||
IHS Markit Ltd. (Professional Svs.) | (c | ) | 4.750% | 02/15/2025 | 215,000 | 211,506 | ||||||||||||||
Masonite International Corp. (Building Products) | (c | ) | 5.625% | 03/15/2023 | 66,000 | 64,020 | ||||||||||||||
Northrop Grumman Corp. (Aerospace & Defense) | 2.550% | 10/15/2022 | 285,000 | 276,038 | ||||||||||||||||
Owens Corning (Building Products) | 4.200% | 12/01/2024 | 115,000 | 114,077 | ||||||||||||||||
United Technologies Corp. (Aerospace & Defense) | 3.950% | 08/16/2025 | 130,000 | 129,051 | ||||||||||||||||
Verisk Analytics, Inc. (Professional Svs.) | 4.875% | 01/15/2019 | 82,000 | 82,029 | ||||||||||||||||
Verisk Analytics, Inc. (Professional Svs.) | 5.800% | 05/01/2021 | 211,000 | 221,806 | ||||||||||||||||
Verisk Analytics, Inc. (Professional Svs.) | 4.125% | 09/12/2022 | 184,000 | 186,382 | ||||||||||||||||
Verisk Analytics, Inc. (Professional Svs.) | 5.500% | 06/15/2045 | 222,000 | 224,993 | ||||||||||||||||
Wabtec Corp. (Machinery) | 4.150% | 03/15/2024 | 77,000 | 74,404 | ||||||||||||||||
Wabtec Corp. (Machinery) | 4.700% | 09/15/2028 | 153,000 | 143,578 | ||||||||||||||||
|
| |||||||||||||||||||
2,189,987 | ||||||||||||||||||||
|
| |||||||||||||||||||
INFORMATION TECHNOLOGY – 0.7% | ||||||||||||||||||||
Broadcom Corp. / Broadcom Cayman Finance Ltd. (Semiconductors & Equip.) | 3.125% | 01/15/2025 | 224,000 | 202,304 | ||||||||||||||||
Dell International LLC / EMC Corp. (Computers & Peripherals) | (c | ) | 6.020% | 06/15/2026 | 569,000 | 571,831 | ||||||||||||||
Marvell Technology Group Ltd. (Semiconductors & Equip.) | 4.200% | 06/22/2023 | 108,000 | 107,681 | ||||||||||||||||
Marvell Technology Group Ltd. (Semiconductors & Equip.) | 4.875% | 06/22/2028 | 123,000 | 119,909 | ||||||||||||||||
Total System Services, Inc. (IT Svs.) | 3.800% | 04/01/2021 | 134,000 | 133,969 | ||||||||||||||||
Total System Services, Inc. (IT Svs.) | 4.800% | 04/01/2026 | 369,000 | 372,042 | ||||||||||||||||
Trimble, Inc. (Electronic Equip., Instr. & Comp.) | 4.750% | 12/01/2024 | 270,000 | 272,212 | ||||||||||||||||
Trimble, Inc. (Electronic Equip., Instr. & Comp.) | 4.900% | 06/15/2028 | 589,000 | 580,283 | ||||||||||||||||
|
| |||||||||||||||||||
2,360,231 | ||||||||||||||||||||
|
| |||||||||||||||||||
MATERIALS – 1.1% | ||||||||||||||||||||
Anglo American Capital PLC (Metals & Mining) | (c | ) | 4.125% | 09/27/2022 | 450,000 | 443,480 | ||||||||||||||
Ball Corp. (Containers & Packaging) | 4.375% | 12/15/2020 | 227,000 | 227,851 | ||||||||||||||||
CF Industries, Inc. (Chemicals) | (c | ) | 4.500% | 12/01/2026 | 116,000 | 113,427 | ||||||||||||||
CF Industries, Inc. (Chemicals) | 5.375% | 03/15/2044 | 127,000 | 102,870 | ||||||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 3.100% | 03/15/2020 | 76,000 | 74,290 | ||||||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 3.550% | 03/01/2022 | 295,000 | 279,144 | ||||||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 3.875% | 03/15/2023 | 341,000 | 315,425 | ||||||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 4.550% | 11/14/2024 | 276,000 | 254,610 | ||||||||||||||||
Freeport-McMoRan, Inc. (Metals & Mining) | 5.450% | 03/15/2043 | 267,000 | 203,254 | ||||||||||||||||
Georgia-Pacific LLC (Paper & Forest Products) | (c | ) | 3.163% | 11/15/2021 | 99,000 | 98,101 | ||||||||||||||
Georgia-Pacific LLC (Paper & Forest Products) | (c | ) | 3.600% | 03/01/2025 | 386,000 | 385,260 | ||||||||||||||
Reliance Steel & Aluminum Co. (Metals & Mining) | 4.500% | 04/15/2023 | 116,000 | 117,208 |
102 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments
|
December 31, 2018
|
Corporate Bonds (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||||
MATERIALS (continued) | ||||||||||||||||||||
Steel Dynamics, Inc. (Metals & Mining) | 4.125% | 09/15/2025 | $ | 197,000 | $ 180,994 | |||||||||||||||
Syngenta Finance N.V. (Chemicals) | (c | ) | 3.698% | 04/24/2020 | 200,000 | 198,523 | ||||||||||||||
Syngenta Finance N.V. (Chemicals) | (c | ) | 3.933% | 04/23/2021 | 200,000 | 197,260 | ||||||||||||||
Syngenta Finance N.V. (Chemicals) | (c | ) | 4.441% | 04/24/2023 | 200,000 | 192,734 | ||||||||||||||
Syngenta Finance N.V. (Chemicals) | (c | ) | 4.892% | 04/24/2025 | 200,000 | 189,189 | ||||||||||||||
Teck Resources Ltd. (Metals & Mining) | (c | ) | 8.500% | 06/01/2024 | 190,000 | 203,537 | ||||||||||||||
Vulcan Materials Co. (Construction Materials) | 4.500% | 04/01/2025 | 18,000 | 17,888 | ||||||||||||||||
|
| |||||||||||||||||||
3,795,045 | ||||||||||||||||||||
|
| |||||||||||||||||||
REAL ESTATE – 0.4% | ||||||||||||||||||||
Alexandria Real Estate Equities, Inc. (Equity REIT) | 2.750% | 01/15/2020 | 152,000 | 150,796 | ||||||||||||||||
Alexandria Real Estate Equities, Inc. (Equity REIT) | 4.600% | 04/01/2022 | 257,000 | 264,557 | ||||||||||||||||
Crown Castle International Corp. (Equity REIT) | 5.250% | 01/15/2023 | 222,000 | 230,518 | ||||||||||||||||
Crown Castle International Corp. (Equity REIT) | 3.200% | 09/01/2024 | 177,000 | 167,521 | ||||||||||||||||
Jones Lang LaSalle, Inc. (Real Estate Mgmt. & Development) | 4.400% | 11/15/2022 | 197,000 | 198,988 | ||||||||||||||||
Kennedy-Wilson, Inc. (Real Estate Mgmt. & Development) | 5.875% | 04/01/2024 | 282,000 | 263,670 | ||||||||||||||||
Senior Housing Properties Trust (Equity REIT) | 6.750% | 12/15/2021 | 61,000 | 63,916 | ||||||||||||||||
|
| |||||||||||||||||||
1,339,966 | ||||||||||||||||||||
|
| |||||||||||||||||||
UTILITIES – 0.3% | ||||||||||||||||||||
Duke Energy Corp. (Electric Utilities) | 1.800% | 09/01/2021 | 96,000 | 91,883 | ||||||||||||||||
Duke Energy Corp. (Electric Utilities) | 2.400% | 08/15/2022 | 116,000 | 111,439 | ||||||||||||||||
NRG Energy, Inc. (Ind. Power & Renewable Elec.) | 7.250% | 05/15/2026 | 273,000 | 284,261 | ||||||||||||||||
PPL WEM Ltd. / Western Power Distribution Ltd. (Electric Utilities) | (c | ) | 5.375% | 05/01/2021 | 203,000 | 209,604 | ||||||||||||||
Sempra Energy (Multi-Utilities) | QL + 50 | 01/15/2021 | 202,000 | 198,608 | ||||||||||||||||
Southern Co. / The (Electric Utilities) | 2.950% | 07/01/2023 | 192,000 | 185,495 | ||||||||||||||||
|
| |||||||||||||||||||
1,081,290 | ||||||||||||||||||||
|
| |||||||||||||||||||
Total Corporate Bonds (Cost $31,413,035) | $30,389,727 | |||||||||||||||||||
|
| |||||||||||||||||||
U.S. Government Agency Mortgage-Backed Securities – 7.8% | Rate | Maturity | Face Amount | Value | ||||||||||||||||
Fannie Mae Pool FN AB6548 | 3.500% | 10/01/2042 | $ | 107,492 | $ 108,293 | |||||||||||||||
Fannie Mae Pool FN AB8407 | 3.500% | 02/01/2043 | 26,621 | 26,786 | ||||||||||||||||
Fannie Mae Pool FN AL3083 | 3.500% | 12/01/2042 | 250,291 | 251,851 | ||||||||||||||||
Fannie Mae Pool FN AL5310 | 3.500% | 04/01/2044 | 4,644 | 4,680 | ||||||||||||||||
Fannie Mae Pool FN AL5439 | 3.500% | 11/01/2043 | 25,412 | 25,570 | ||||||||||||||||
Fannie Mae Pool FN AL5887 | 4.500% | 10/01/2044 | 29,064 | 30,567 | ||||||||||||||||
Fannie Mae Pool FN AL5942 | 5.000% | 07/01/2044 | 159,609 | 170,862 | ||||||||||||||||
Fannie Mae Pool FN AL6348 | 3.500% | 02/01/2045 | 36,514 | 36,741 | ||||||||||||||||
Fannie Mae Pool FN AL6535 | 3.500% | 02/01/2045 | 6,687 | 6,729 | ||||||||||||||||
Fannie Mae Pool FN AL6542 | 4.500% | 03/01/2045 | 47,490 | 49,947 | ||||||||||||||||
Fannie Mae Pool FN AL6620 | 4.500% | 08/01/2042 | 296,915 | 311,533 | ||||||||||||||||
Fannie Mae Pool FN AL6997 | 4.500% | 11/01/2042 | 22,199 | 23,262 | ||||||||||||||||
Fannie Mae Pool FN AL7381 | 4.500% | 06/01/2045 | 121,441 | 126,997 | ||||||||||||||||
Fannie Mae Pool FN AL8855 | 3.500% | 07/01/2046 | 19,334 | 19,396 | ||||||||||||||||
Fannie Mae Pool FN AR2624 | 3.500% | 02/01/2043 | 42,509 | 42,774 | ||||||||||||||||
Fannie Mae Pool FN AS7168 | 3.500% | 05/01/2046 | 51,079 | 51,243 | ||||||||||||||||
Fannie Mae Pool FN AS7587 | 3.500% | 07/01/2046 | 216,490 | 217,376 | ||||||||||||||||
Fannie Mae Pool FN AS7822 | 3.500% | 08/01/2046 | 614,418 | 616,267 | ||||||||||||||||
Fannie Mae Pool FN AS8510 | 4.500% | 12/01/2046 | 75,065 | 78,228 | ||||||||||||||||
Fannie Mae Pool FN AS9751 | 4.000% | 05/01/2047 | 56,657 | 57,819 | ||||||||||||||||
Fannie Mae Pool FN AT2957 | 3.000% | 05/01/2043 | 31,964 | 31,428 | ||||||||||||||||
Fannie Mae Pool FN AZ9203 | 3.000% | 10/01/2045 | 78,040 | 76,183 | ||||||||||||||||
Fannie Mae Pool FN BA2885 | 3.000% | 10/01/2045 | 123,772 | 120,826 | ||||||||||||||||
Fannie Mae Pool FN BA4752 | 3.000% | 01/01/2046 | 16,735 | 16,347 | ||||||||||||||||
Fannie Mae Pool FN BC1520 | 3.500% | 08/01/2046 | 387,753 | 388,960 | ||||||||||||||||
Fannie Mae Pool FN BC2468 | 3.000% | 03/01/2046 | 348,839 | 340,600 | ||||||||||||||||
Fannie Mae Pool FN BC2488 | 3.000% | 03/01/2046 | 515,736 | 503,556 | ||||||||||||||||
Fannie Mae Pool FN BC9077 | 3.500% | 12/01/2046 | 25,646 | 25,719 | ||||||||||||||||
Fannie Mae Pool FN BD0667 | 4.500% | 06/01/2047 | 19,639 | 20,539 | ||||||||||||||||
Fannie Mae Pool FN BD6435 | 4.000% | 10/01/2046 | 9,090 | 9,306 | ||||||||||||||||
Fannie Mae Pool FN BD8952 | 3.000% | 11/01/2046 | 41,494 | 40,573 | ||||||||||||||||
Fannie Mae Pool FN BD8980 | 3.000% | 11/01/2046 | 40,022 | 39,133 | ||||||||||||||||
Fannie Mae Pool FN BE0637 | 4.000% | 07/01/2047 | 7,342 | 7,506 | ||||||||||||||||
Fannie Mae Pool FN BE0640 | 4.500% | 08/01/2047 | 17,989 | 18,813 | ||||||||||||||||
Fannie Mae Pool FN BE2717 | 4.500% | 07/01/2047 | 12,591 | 13,168 | ||||||||||||||||
Fannie Mae Pool FN BE2732 | 4.000% | 07/01/2047 | 26,240 | 26,826 | ||||||||||||||||
Fannie Mae Pool FN BE2733 | 4.500% | 07/01/2047 | 14,092 | 14,738 | ||||||||||||||||
Fannie Mae Pool FN BE2774 | 4.000% | 10/01/2047 | 57,769 | 59,058 | ||||||||||||||||
Fannie Mae Pool FN BE2784 | 4.000% | 11/01/2047 | 77,613 | 79,346 |
103 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments
|
December 31, 2018
|
U.S. Government Agency Mortgage-Backed Securities (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||
Fannie Mae Pool FN BE2786 | 4.500% | 11/01/2047 | $ | 69,428 | $ | 72,610 | ||||||||||
Fannie Mae Pool FN BF0130 | 3.500% | 08/01/2056 | 367,195 | 366,252 | ||||||||||||
Fannie Mae Pool FN BF0167 | 3.000% | 02/01/2057 | 330,464 | 319,386 | ||||||||||||
Fannie Mae Pool FN BF0168 | 3.500% | 02/01/2057 | 520,169 | 518,834 | ||||||||||||
Fannie Mae Pool FN BH1596 | 4.000% | 01/01/2048 | 38,366 | 39,332 | ||||||||||||
Fannie Mae Pool FN BH1902 | 3.500% | 12/01/2047 | 20,852 | 20,989 | ||||||||||||
Fannie Mae Pool FN BH3305 | 4.500% | 05/01/2047 | 29,301 | 30,733 | ||||||||||||
Fannie Mae Pool FN BH3306 | 4.500% | 05/01/2047 | 23,949 | 25,047 | ||||||||||||
Fannie Mae Pool FN BH3307 | 4.500% | 05/01/2047 | 24,122 | 25,228 | ||||||||||||
Fannie Mae Pool FN BH3336 | 4.500% | 05/01/2047 | 17,619 | 18,494 | ||||||||||||
Fannie Mae Pool FN BH3337 | 4.500% | 05/01/2047 | 14,206 | 14,897 | ||||||||||||
Fannie Mae Pool FN BH3338 | 4.500% | 05/01/2047 | 16,913 | 17,689 | ||||||||||||
Fannie Mae Pool FN BH3540 | 4.000% | 06/01/2047 | 6,896 | 7,038 | ||||||||||||
Fannie Mae Pool FN BH3892 | 3.500% | 08/01/2047 | 79,019 | 79,114 | ||||||||||||
Fannie Mae Pool FN BH4380 | 4.000% | 06/01/2047 | 15,252 | 15,592 | ||||||||||||
Fannie Mae Pool FN BH4639 | 4.500% | 06/01/2047 | 10,443 | 10,944 | ||||||||||||
Fannie Mae Pool FN BH4640 | 4.500% | 05/01/2047 | 8,295 | 8,675 | ||||||||||||
Fannie Mae Pool FN BH4667 | 4.500% | 05/01/2047 | 5,453 | 5,715 | ||||||||||||
Fannie Mae Pool FN BH4706 | 4.500% | 05/01/2047 | 6,012 | 6,300 | ||||||||||||
Fannie Mae Pool FN BH5672 | 4.000% | 06/01/2047 | 15,170 | 15,482 | ||||||||||||
Fannie Mae Pool FN BH5673 | 4.000% | 07/01/2047 | 10,512 | 10,747 | ||||||||||||
Fannie Mae Pool FN BH5725 | 4.000% | 11/01/2047 | 90,091 | 91,887 | ||||||||||||
Fannie Mae Pool FN BH6165 | 4.000% | 07/01/2047 | 24,011 | 24,547 | ||||||||||||
Fannie Mae Pool FN BH6168 | 4.000% | 06/01/2047 | 29,901 | 30,568 | ||||||||||||
Fannie Mae Pool FN BH6170 | 4.500% | 07/01/2047 | 65,835 | 68,853 | ||||||||||||
Fannie Mae Pool FN BH6940 | 3.500% | 08/01/2047 | 51,823 | 51,907 | ||||||||||||
Fannie Mae Pool FN BH7029 | 4.000% | 12/01/2047 | 176,340 | 179,854 | ||||||||||||
Fannie Mae Pool FN BH7108 | 4.000% | 01/01/2048 | 338,205 | 344,941 | ||||||||||||
Fannie Mae Pool FN BH8168 | 4.000% | 08/01/2047 | 27,834 | 28,456 | ||||||||||||
Fannie Mae Pool FN BH8170 | 4.000% | 08/01/2047 | 44,904 | 45,906 | ||||||||||||
Fannie Mae Pool FN BH8171 | 4.500% | 08/01/2047 | 88,921 | 92,996 | ||||||||||||
Fannie Mae Pool FN BH8224 | 4.000% | 08/01/2047 | 135,600 | 138,313 | ||||||||||||
Fannie Mae Pool FN BH8655 | 4.000% | 08/01/2047 | 12,116 | 12,357 | ||||||||||||
Fannie Mae Pool FN BJ0241 | 4.000% | 09/01/2047 | 11,755 | 12,017 | ||||||||||||
Fannie Mae Pool FN BJ1588 | 4.000% | 10/01/2047 | 26,482 | 27,073 | ||||||||||||
Fannie Mae Pool FN BJ1692 | 3.500% | 12/01/2047 | 131,725 | 132,154 | ||||||||||||
Fannie Mae Pool FN BJ1695 | 3.500% | 12/01/2047 | 24,165 | 24,208 | ||||||||||||
Fannie Mae Pool FN BJ1735 | 4.000% | 10/01/2047 | 52,593 | 53,767 | ||||||||||||
Fannie Mae Pool FN BJ1747 | 4.000% | 10/01/2047 | 32,250 | 32,970 | ||||||||||||
Fannie Mae Pool FN BJ1758 | 4.000% | 10/01/2047 | 50,641 | 51,771 | ||||||||||||
Fannie Mae Pool FN BJ2553 | 3.500% | 12/01/2047 | 159,758 | 159,852 | ||||||||||||
Fannie Mae Pool FN BJ3260 | 4.500% | 10/01/2047 | 6,603 | 6,906 | ||||||||||||
Fannie Mae Pool FN BJ3265 | 4.000% | 11/01/2047 | 24,039 | 24,576 | ||||||||||||
Fannie Mae Pool FN BJ3443 | 4.000% | 03/01/2048 | 33,406 | 34,247 | ||||||||||||
Fannie Mae Pool FN BJ4558 | 3.500% | 01/01/2048 | 97,663 | 98,039 | ||||||||||||
Fannie Mae Pool FN BJ4559 | 3.500% | 01/01/2048 | 34,321 | 34,412 | ||||||||||||
Fannie Mae Pool FN BJ4566 | 4.000% | 01/01/2048 | 327,275 | 334,929 | ||||||||||||
Fannie Mae Pool FN BJ4567 | 4.000% | 01/01/2048 | 559,520 | 572,271 | ||||||||||||
Fannie Mae Pool FN BJ5170 | 3.500% | 03/01/2048 | 17,867 | 17,985 | ||||||||||||
Fannie Mae Pool FN BJ5796 | 4.500% | 03/01/2048 | 114,695 | 120,322 | ||||||||||||
Fannie Mae Pool FN BJ5834 | 4.500% | 05/01/2048 | 60,983 | 63,881 | ||||||||||||
Fannie Mae Pool FN BJ5844 | 4.500% | 04/01/2048 | 88,258 | 92,684 | ||||||||||||
Fannie Mae Pool FN BK1964 | 4.000% | 03/01/2048 | 136,932 | 140,139 | ||||||||||||
Fannie Mae Pool FN BK1975 | 3.500% | 03/01/2048 | 57,756 | 57,978 | ||||||||||||
Fannie Mae Pool FN BK3986 | 4.500% | 05/01/2048 | 70,019 | 73,255 | ||||||||||||
Fannie Mae Pool FN BK4039 | 4.500% | 06/01/2048 | 67,932 | 70,899 | ||||||||||||
Fannie Mae Pool FN BK4157 | 4.000% | 05/01/2048 | 360,467 | 367,647 | ||||||||||||
Fannie Mae Pool FN BK5358 | 4.000% | 05/01/2048 | 90,720 | 92,528 | ||||||||||||
Fannie Mae Pool FN BK5378 | 4.000% | 06/01/2048 | 142,240 | 145,073 | ||||||||||||
Fannie Mae Pool FN BK8082 | 4.000% | 08/01/2048 | 116,219 | 118,534 | ||||||||||||
Fannie Mae Pool FN BK9368 | 4.000% | 09/01/2048 | 131,468 | 134,086 | ||||||||||||
Fannie Mae Pool FN BM3032 | 3.000% | 02/01/2047 | 668,653 | 658,176 | ||||||||||||
Fannie Mae Pool FN BM3144 | 4.000% | 11/01/2047 | 149,319 | 152,530 | ||||||||||||
Fannie Mae Pool FN BM3282 | 3.500% | 12/01/2047 | 10,883 | 10,954 | ||||||||||||
Fannie Mae Pool FN BM3511 | 4.500% | 02/01/2046 | 201,976 | 211,595 | ||||||||||||
Fannie Mae Pool FN BM3557 | 4.000% | 09/01/2047 | 309,338 | 317,996 | ||||||||||||
Fannie Mae Pool FN BM3878 | 4.000% | 04/01/2048 | 71,104 | 72,905 | ||||||||||||
Fannie Mae Pool FN BM3912 | 3.000% | 03/01/2047 | 262,805 | 256,935 | ||||||||||||
Fannie Mae Pool FN BM4735 | 3.500% | 04/01/2048 | 188,202 | 189,057 | ||||||||||||
Fannie Mae Pool FN BM5138 | 3.500% | 11/01/2048 | 305,130 | 306,286 | ||||||||||||
Fannie Mae Pool FN CA0108 | 3.500% | 08/01/2047 | 39,400 | 39,640 |
104 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments
|
December 31, 2018
|
U.S. Government Agency Mortgage-Backed Securities (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||
Fannie Mae Pool FN CA0532 | 3.500% | 10/01/2047 | $ | 311,307 | $ | 311,424 | ||||||||||
Fannie Mae Pool FN MA1363 | 3.000% | 02/01/2043 | 8,655 | 8,510 | ||||||||||||
Fannie Mae Pool FN MA1404 | 3.500% | 04/01/2043 | 141,576 | 142,457 | ||||||||||||
Fannie Mae Pool FN MA3384 | 4.000% | 06/01/2048 | 318,030 | 324,365 | ||||||||||||
Fannie Mae Pool FN MA3525 | 4.500% | 11/01/2038 | 165,199 | 172,583 | ||||||||||||
Freddie Mac Gold Pool FG C92007 | 4.500% | 05/01/2038 | 249,982 | 260,755 | ||||||||||||
Freddie Mac Gold Pool FG C92015 | 4.500% | 07/01/2038 | 187,810 | 196,098 | ||||||||||||
Freddie Mac Gold Pool FG C92020 | 4.500% | 09/01/2038 | 123,736 | 129,196 | ||||||||||||
Freddie Mac Gold Pool FG C92029 | 4.500% | 11/01/2038 | 108,560 | 113,351 | ||||||||||||
Freddie Mac Gold Pool FG G08622 | 3.000% | 01/01/2045 | 62,220 | 60,987 | ||||||||||||
Freddie Mac Gold Pool FG G08817 | 4.000% | 06/01/2048 | 144,846 | 147,707 | ||||||||||||
Freddie Mac Gold Pool FG G08831 | 4.000% | 08/01/2048 | 2,100,919 | 2,142,320 | ||||||||||||
Freddie Mac Gold Pool FG G08832 | 4.500% | 08/01/2048 | 669,810 | 693,628 | ||||||||||||
Freddie Mac Gold Pool FG G60658 | 3.500% | 07/01/2046 | 413,024 | 415,364 | ||||||||||||
Freddie Mac Gold Pool FG G60726 | 3.500% | 10/01/2046 | 513,549 | 515,106 | ||||||||||||
Freddie Mac Gold Pool FG G60989 | 3.000% | 12/01/2046 | 689,562 | 673,028 | ||||||||||||
Freddie Mac Gold Pool FG G61315 | 3.500% | 02/01/2047 | 327,791 | 328,752 | ||||||||||||
Freddie Mac Gold Pool FG G61338 | 3.000% | 08/01/2047 | 1,767,073 | 1,725,530 | ||||||||||||
Freddie Mac Gold Pool FG G61392 | 3.500% | 12/01/2044 | 50,984 | 51,360 | ||||||||||||
Freddie Mac Gold Pool FG Q40332 | 4.000% | 05/01/2046 | 65,818 | 67,417 | ||||||||||||
Freddie Mac Gold Pool FG Q41917 | 3.500% | 07/01/2046 | 82,631 | 82,762 | ||||||||||||
Freddie Mac Gold Pool FG Q46411 | 4.000% | 03/01/2047 | 22,752 | 23,253 | ||||||||||||
Freddie Mac Gold Pool FG Q51328 | 3.500% | 10/01/2047 | 246,994 | 247,065 | ||||||||||||
Freddie Mac Gold Pool FG Q52419 | 3.500% | 11/01/2047 | 110,473 | 110,599 | ||||||||||||
Freddie Mac Gold Pool FG Q53205 | 3.500% | 12/01/2047 | 77,854 | 78,119 | ||||||||||||
Freddie Mac Gold Pool FG Q54450 | 3.500% | 02/01/2048 | 32,637 | 32,709 | ||||||||||||
Freddie Mac Gold Pool FG Q54453 | 3.500% | 02/01/2048 | 32,532 | 32,568 | ||||||||||||
Freddie Mac Gold Pool FG Q54780 | 3.500% | 03/01/2048 | 79,934 | 79,936 | ||||||||||||
Freddie Mac Gold Pool FG Q54952 | 4.000% | 03/01/2048 | 88,753 | 90,808 | ||||||||||||
Freddie Mac Gold Pool FG Q55522 | 4.000% | 04/01/2048 | 132,955 | 135,570 | ||||||||||||
Freddie Mac Gold Pool FG Q55628 | 4.000% | 04/01/2048 | 144,084 | 147,333 | ||||||||||||
Freddie Mac Gold Pool FG Q55894 | 4.000% | 05/01/2048 | 64,049 | 65,312 | ||||||||||||
Freddie Mac Gold Pool FG Q55913 | 4.000% | 05/01/2048 | 384,144 | 391,753 | ||||||||||||
Freddie Mac Gold Pool FG Q56524 | 4.000% | 06/01/2048 | 103,361 | 105,400 | ||||||||||||
Freddie Mac Gold Pool FG Q57835 | 4.000% | 08/01/2048 | 450,793 | 462,093 | ||||||||||||
Freddie Mac Gold Pool FG Q58012 | 4.500% | 08/01/2048 | 109,950 | 113,893 | ||||||||||||
Freddie Mac Gold Pool FG Q58159 | 5.000% | 09/01/2048 | 27,218 | 28,519 | ||||||||||||
Freddie Mac Gold Pool FG Q60519 | 4.500% | 12/01/2048 | 140,000 | 146,144 | ||||||||||||
Freddie Mac Gold Pool FG U91030 | 3.500% | 02/01/2043 | 93,874 | 94,419 | ||||||||||||
Freddie Mac Gold Pool FG U99096 | 4.500% | 05/01/2044 | 123,616 | 129,574 | ||||||||||||
Freddie Mac Gold Pool FG U99114 | 3.500% | 02/01/2044 | 13,118 | 13,194 | ||||||||||||
Freddie Mac Gold Pool FG V82645 | 3.000% | 10/01/2046 | 340,616 | 332,453 | ||||||||||||
Ginnie Mae I Pool GN 784059 | 4.000% | 01/15/2045 | 269,991 | 278,424 | ||||||||||||
Ginnie Mae I Pool GN 784182 | 4.500% | 08/15/2046 | 445,401 | 466,417 | ||||||||||||
Ginnie Mae I Pool GN BB4357 | 4.000% | 07/15/2047 | 359,747 | 369,068 | ||||||||||||
Ginnie Mae I Pool GN BC7161 | 4.000% | 08/15/2047 | 76,631 | 78,613 | ||||||||||||
Ginnie Mae I Pool GN BD7109 | 4.000% | 11/15/2047 | 68,358 | 70,205 | ||||||||||||
Ginnie Mae I Pool GN BD7135 | 4.000% | 12/15/2047 | 91,002 | 93,465 | ||||||||||||
Ginnie Mae II Pool G2 BB9817 | 4.000% | 08/20/2047 | 32,576 | 33,575 | ||||||||||||
Ginnie Mae II Pool G2 BH3672 | 4.500% | 05/20/2048 | 46,850 | 49,036 | ||||||||||||
Ginnie Mae II Pool G2 BH3673 | 4.500% | 05/20/2048 | 196,205 | 205,362 | ||||||||||||
Ginnie Mae II Pool G2 MA5332 | 5.000% | 07/20/2048 | 542,738 | 565,125 | ||||||||||||
Ginnie Mae II Pool G2 MA5468 | 5.000% | 09/20/2048 | 395,364 | 412,414 | ||||||||||||
Ginnie Mae II Pool G2 MA5652 | 4.500% | 12/20/2048 | 306,000 | 317,300 | ||||||||||||
Ginnie Mae II Pool G2 MA5653 | 5.000% | 12/20/2048 | 670,205 | 699,491 | ||||||||||||
|
| |||||||||||||||
Total U.S. Government Agency Mortgage-Backed Securities (Cost $27,430,879) | $ | 27,201,415 | ||||||||||||||
|
|
Purchased Options – 7.3% | Notional Amount | Expiration | Exercise Price | Contracts (e) | Value | |||||||||||||||
S&P 500 Index Call Option | $ | 3,760,275 | December 2020 | $2,600 | 15 | $ | 322,350 | |||||||||||||
S&P 500 Index Call Option | 2,506,850 | December 2020 | $2,700 | 10 | 170,000 | |||||||||||||||
S&P 500 Index Call Option | 21,308,225 | December 2020 | $2,750 | 85 | 1,262,250 | |||||||||||||||
S&P 500 Index Call Option | 17,547,950 | December 2020 | $2,800 | 70 | 920,500 | |||||||||||||||
S&P 500 Index Call Option | 22,561,650 | December 2020 | $2,850 | 90 | 1,035,270 | |||||||||||||||
S&P 500 Index Call Option | 8,773,975 | December 2020 | $2,900 | 35 | 348,250 | |||||||||||||||
S&P 500 Index Call Option | 3,760,275 | December 2020 | $2,950 | 15 | 128,700 | |||||||||||||||
S&P 500 Index Call Option | 5,013,700 | December 2020 | $3,000 | 20 | 146,100 | |||||||||||||||
S&P 500 Index Call Option | 1,253,425 | December 2020 | $3,050 | 5 | 31,400 | |||||||||||||||
S&P 500 Index Put Option | 3,760,275 | December 2020 | $2,600 | 15 | 424,650 | |||||||||||||||
S&P 500 Index Put Option | 2,506,850 | December 2020 | $2,700 | 10 | 332,800 |
105 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments
|
December 31, 2018
|
Purchased Options (Continued) | Notional Amount | Expiration | Exercise Price | Contracts (e) | Value | |||||||||||||||
S&P 500 Index Put Option | $ | 21,308,225 | December 2020 | $2,750 | 85 | $ | 3,061,700 | |||||||||||||
S&P 500 Index Put Option | 17,547,950 | December 2020 | $2,800 | 70 | 2,723,700 | |||||||||||||||
S&P 500 Index Put Option | 22,561,650 | December 2020 | $2,850 | 90 | 3,871,350 | |||||||||||||||
S&P 500 Index Put Option | 8,773,975 | December 2020 | $2,900 | 35 | 1,608,425 | |||||||||||||||
S&P 500 Index Put Option | 3,760,275 | December 2020 | $2,950 | 15 | 728,400 | |||||||||||||||
S&P 500 Index Put Option | 5,013,700 | December 2020 | $3,000 | 20 | 1,041,400 | |||||||||||||||
S&P 500 Index Put Option | 1,253,425 | December 2020 | $3,050 | 5 | 278,650 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 2,124,320 | December 2020 | $265 | 85 | 156,400 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 3,748,800 | December 2020 | $270 | 150 | 250,800 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 5,948,096 | December 2020 | $275 | 238 | 352,716 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 2,599,168 | December 2020 | $280 | 104 | 141,024 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 2,124,320 | December 2020 | $285 | 85 | 94,775 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 4,123,680 | December 2020 | $290 | 165 | 152,130 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 5,248,320 | December 2020 | $300 | 210 | 151,200 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 2,649,152 | December 2020 | $305 | 106 | 69,854 | |||||||||||||||
SPDR S&P 500 ETF Trust Call Option | 2,749,120 | December 2020 | $310 | 110 | 58,520 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 2,124,320 | December 2020 | $265 | 85 | 273,105 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 3,748,800 | December 2020 | $270 | 150 | 523,350 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 5,948,096 | December 2020 | $275 | 238 | 847,518 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 2,599,168 | December 2020 | $280 | 104 | 411,528 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 2,124,320 | December 2020 | $285 | 85 | 372,980 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 4,123,680 | December 2020 | $290 | 165 | 790,185 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 5,248,320 | December 2020 | $300 | 210 | 1,144,500 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 2,649,152 | December 2020 | $305 | 106 | 594,872 | |||||||||||||||
SPDR S&P 500 ETF Trust Put Option | 2,749,120 | December 2020 | $310 | 110 | 688,600 | |||||||||||||||
|
| |||||||||||||||||||
Total Purchased Options (Cost $25,336,003) | $ | 25,509,952 | ||||||||||||||||||
|
|
Asset-Backed / Mortgage-Backed Securities – 3.7% | Rate | Maturity | Face Amount | Value | ||||||||||||||
CONSUMER DISCRETIONARY – 0.1% | ||||||||||||||||||
Applebee’s Funding LLC / IHOP Funding LLC2014-1 A2 | (c | ) | 4.277% | 09/05/2044 | $ | 196,513 | $ | 196,014 | ||||||||||
|
| |||||||||||||||||
FINANCIALS – 3.6% | ||||||||||||||||||
AmeriCredit Automobile Receivables Trust2015-3 D | 3.340% | 08/08/2021 | 383,000 | 384,245 | ||||||||||||||
AmeriCredit Automobile Receivables Trust2016-1 D | 3.590% | 02/08/2022 | 81,000 | 81,384 | ||||||||||||||
Angel Oak Mortgage Trust I LLC2018-2 A1 | (c | ) | 3.674% | 07/27/2048 | 63,012 | 62,809 | ||||||||||||
Arroyo Mortgage Trust2018-1 A1 | (c | ) | 3.763% | 04/25/2048 | 97,830 | 97,601 | ||||||||||||
BAMLL Commercial Mortgage Securities Trust 2013-WBRK A | (c | ) | 3.534% | 03/10/2037 | 169,000 | 166,036 | ||||||||||||
BAMLL Commercial Mortgage Securities Trust 2018-DSNY A | (c | ) | ML + 85 | 09/15/2034 | 264,000 | 262,689 | ||||||||||||
BBCMS Mortgage Trust 2018-TALL A | (c | ) | ML + 72 | 03/15/2037 | 845,000 | 830,128 | ||||||||||||
BBCMS Trust 2015-SRCH A2 | (c | ) | 4.197% | 08/10/2035 | 210,000 | 212,649 | ||||||||||||
Bean Creek CLO Ltd.2015-1A AR | (c | ) | QL + 102 | 04/20/2031 | 221,000 | 216,055 | ||||||||||||
BHMS Mortgage Trust 2018-ATLS A | (c | ) | ML + 125 | 07/15/2035 | 226,000 | 224,883 | ||||||||||||
BX Commercial Mortgage Trust2018-IND A | (c | ) | ML + 75 | 11/15/2035 | 387,422 | 385,000 | ||||||||||||
BXP Trust2017-GM A | (c | ) | 3.379% | 06/13/2039 | 96,000 | 93,748 | ||||||||||||
Caesars Palace Las Vegas Trust 2017-VICI C | (c | ) | 4.138% | 10/15/2034 | 135,000 | 135,645 | ||||||||||||
Caesars Palace Las Vegas Trust 2017-VICI D | (c | ) | 4.354% | 10/15/2034 | 145,000 | 145,146 | ||||||||||||
Caesars Palace Las Vegas Trust 2017-VICI E | (c | ) | 4.354% | 10/15/2034 | 191,000 | 186,603 | ||||||||||||
Carlyle Global Market Strategies CLO2016-1A A2R | (c | ) | QL + 145 | 04/20/2027 | 250,000 | 243,580 | ||||||||||||
Carlyle Global Market Strategies CLO2018-1A A1 | (c | ) | QL + 102 | 04/20/2031 | 422,000 | 413,629 | ||||||||||||
CIFC Funding2013-4A A1RR | (c | ) | QL + 106 | 04/27/2031 | 250,000 | 245,570 | ||||||||||||
CIFC Funding2018-2A A1 | (c | ) | QL + 104 | 04/20/2031 | 258,000 | 252,827 | ||||||||||||
CSMLT2015-2 A6 | (c | ) | 3.500% | 08/25/2045 | 116,731 | 115,690 | ||||||||||||
Drive Auto Receivables Trust2017-1 D | 3.840% | 03/15/2023 | 23,000 | 23,083 | ||||||||||||||
Drive Auto Receivables Trust2017-AA D | (c | ) | 4.160% | 05/15/2024 | 130,000 | 131,467 | ||||||||||||
Dryden 41 Senior Loan Fund2015-41A AR | (c | ) | QL + 97 | 04/15/2031 | 250,000 | 244,423 | ||||||||||||
Dryden 64 CLO Ltd.2018-64A A | (c | ) | QL + 97 | 04/18/2031 | 250,000 | 244,420 | ||||||||||||
Exeter Automobile Receivables Trust2018-2A C | (c | ) | 3.690% | 03/15/2023 | 105,000 | 105,366 | ||||||||||||
Fannie Mae Connecticut Avenue Securities2014-C02 1M2 | ML + 260 | 05/25/2024 | 114,271 | 119,713 | ||||||||||||||
Fannie Mae Connecticut Avenue Securities2014-C03 1M2 | ML + 300 | 07/25/2024 | 402,764 | 423,475 | ||||||||||||||
Fannie Mae REMICS FNR2018-27 EA | 3.000% | 05/25/2048 | 317,069 | 311,794 | ||||||||||||||
Freddie Mac Structured Agency Credit Risk Debt Notes2014-DN1 M3 | ML + 450 | 02/25/2024 | 338,000 | 378,964 | ||||||||||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust2015-UES E | (c | ) | 3.621% | 09/05/2032 | 44,000 | 43,088 | ||||||||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust 2016-WIKI C | (c | ) | 3.554% | 10/05/2031 | 26,000 | 25,560 | ||||||||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust 2016-WIKI D | (c | ) | 4.009% | 10/05/2031 | 40,000 | 39,190 | ||||||||||||
J.P. Morgan Mortgage Trust2018-8 A13 | (c | ) | 4.000% | 01/25/2049 | 69,473 | 68,775 | ||||||||||||
LCM XIV LP 14A AR | (c | ) | QL + 104 | 07/20/2031 | 250,000 | 245,194 | ||||||||||||
LCM XVIII LP 18A A1R | (c | ) | QL + 102 | 04/20/2031 | 389,000 | 384,791 | ||||||||||||
loanDepot Station Place Agency Securitization Trust2017-LD1 A | (c | ) | ML + 80 | 11/25/2050 | 327,000 | 326,006 |
106 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Asset-Backed / Mortgage-Backed Securities (Continued) | Rate | Maturity | Face Amount | Value | ||||||||||||||||
FINANCIALS (continued) | ||||||||||||||||||||
loanDepot Station Place Agency Securitization Trust2017-LD1 B | (c) | ML + 100 | 11/25/2050 | $ | 65,000 | $ | 64,832 | |||||||||||||
Magnetite VIII Ltd.2014-8A AR2 | (c) | QL + 98 | 04/15/2031 | 156,000 | 153,716 | |||||||||||||||
Magnetite XV Ltd.2015-15A AR | (c) | QL + 101 | 07/25/2031 | 283,000 | 277,271 | |||||||||||||||
Mello Warehouse Securitization Trust2018-W1 A | (c) | ML + 85 | 11/25/2051 | 500,000 | 499,854 | |||||||||||||||
New Residential Mortgage Loan Trust2018-2A A1 | (c) | 4.500% | 02/25/2058 | 110,087 | 112,191 | |||||||||||||||
Octagon Investment Partners 36 Ltd.2018-1A A1 | (c) | QL + 97 | 04/15/2031 | 142,000 | 139,231 | |||||||||||||||
Octagon Loan Funding Ltd.2014-1A ARR | (c) | QL + 118 | 11/18/2031 | 334,000 | 331,969 | |||||||||||||||
OneMain Direct Auto Receivables Trust2018-1A C | (c) | 3.850% | 10/14/2025 | 100,000 | 101,489 | |||||||||||||||
OneMain Direct Auto Receivables Trust2018-1A D | (c) | 4.400% | 01/14/2028 | 100,000 | 102,054 | |||||||||||||||
Sequoia Mortgage Trust2018-7 A4 | (c) | 4.000% | 09/25/2048 | 96,162 | 97,143 | |||||||||||||||
Sequoia Mortgage Trust2018-CH2 A12 | (c) | 4.000% | 06/25/2048 | 238,455 | 240,239 | |||||||||||||||
Sequoia Mortgage Trust2018-CH3 A11 | (c) | 4.000% | 08/25/2048 | 123,021 | 124,011 | |||||||||||||||
Sounds Point CLOIV-R Ltd.2013-3RA A | (c) | QL + 115 | 04/18/2031 | 250,000 | 246,251 | |||||||||||||||
Station Place Securitization Trust2018-7 A | (c) | ML + 85 | 09/24/2019 | 460,000 | 460,000 | |||||||||||||||
Towd Point Mortgage Trust2018-3 A1 | (c) | 3.750% | 05/25/2058 | 93,690 | 93,595 | |||||||||||||||
Towd Point Mortgage Trust2018-4 A1 | (c) | 3.000% | 06/25/2058 | 156,520 | 152,104 | |||||||||||||||
Voya CLO2015-2A BR | (c) | QL + 150 | 07/23/2027 | 250,000 | 248,384 | |||||||||||||||
Voya CLO2018-1A A1 | (c) | QL + 95 | 04/19/2031 | 427,000 | 420,124 | |||||||||||||||
Voya CLO2018-2A A1 | (c) | QL + 100 | 07/15/2031 | 361,028 | 356,625 | |||||||||||||||
Wachovia Bank Commercial Mortgage Trust Series2007-C34 AJ | 6.141% | 05/15/2046 | 15,192 | 15,282 | ||||||||||||||||
Wells Fargo Mortgage Backed Securities2018-1 A17 | (c) | 3.500% | 07/25/2047 | 99,129 | 96,648 | |||||||||||||||
Westlake Automobile Receivables Trust2018-1A D | (c) | 3.410% | 05/15/2023 | 16,000 | 15,886 | |||||||||||||||
WinWater Mortgage Loan Trust2015-5 A5 | (c) | 3.500% | 08/20/2045 | 352,370 | 350,488 | |||||||||||||||
|
| |||||||||||||||||||
12,570,613 | ||||||||||||||||||||
|
| |||||||||||||||||||
Total Asset-Backed / Mortgage-Backed Securities (Cost $12,893,216) | $ | 12,766,627 | ||||||||||||||||||
|
| |||||||||||||||||||
Bank Loans – 0.9% | Rate | Maturity | Face Amount | Value | ||||||||||||||||
COMMUNICATION SERVICES – 0.1% | ||||||||||||||||||||
Mission Broadcasting, Inc. (Index Floor: 0.00%) (Media) | QL + 225 | 01/17/2024 | $ | 21,801 | $ | 20,591 | ||||||||||||||
Nexstar Broadcasting, Inc. (Index Floor: 0.00%) (Media) | QL + 225 | 01/17/2024 | 136,283 | 128,719 | ||||||||||||||||
Zayo Group LLC (Index Floor: 1.00%) (Diversified Telecom. Svs.) | QL + 225 | 01/19/2024 | 119,000 | 113,688 | ||||||||||||||||
|
| |||||||||||||||||||
262,998 | ||||||||||||||||||||
|
| |||||||||||||||||||
CONSUMER DISCRETIONARY – 0.3% | ||||||||||||||||||||
Aramark Services, Inc. (Index Floor: 0.00%) (Hotels, Restaurants & Leisure) | ML + 175 | 03/28/2024 | 118,628 | 114,736 | ||||||||||||||||
Golden Nugget LLC (Index Floor: 0.75%) (Hotels, Restaurants & Leisure) | QL + 275 | 10/04/2023 | 185,605 | 178,180 | ||||||||||||||||
Hilton Worldwide Finance LLC (Index Floor: 0.00%) (Hotels, Restaurants & Leisure) | QL + 175 | 10/25/2023 | 467,000 | 449,487 | ||||||||||||||||
KFC Holding Co. (Index Floor: 0.00%) (Hotels, Restaurants & Leisure) | ML + 175 | 04/03/2025 | 423,777 | 412,920 | ||||||||||||||||
|
| |||||||||||||||||||
1,155,323 | ||||||||||||||||||||
|
| |||||||||||||||||||
HEALTH CARE – 0.0% | ||||||||||||||||||||
Bausch Health Cos., Inc. (Index Floor: 0.00%) (Pharmaceuticals) | ML + 300 | 06/01/2025 | 11,696 | 11,147 | ||||||||||||||||
IQVIA, Inc. (Index Floor: 0.75%) (Life Sciences Tools & Svs.) | QL + 200 | 03/07/2024 | 66,000 | 63,905 | ||||||||||||||||
|
| |||||||||||||||||||
75,052 | ||||||||||||||||||||
|
| |||||||||||||||||||
INDUSTRIALS – 0.1% | ||||||||||||||||||||
HD Supply, Inc. (Index Floor: 0.00%) (Trading Companies & Distributors) | QL + 175 | 10/17/2023 | 154,000 | 147,455 | ||||||||||||||||
|
| |||||||||||||||||||
INFORMATION TECHNOLOGY – 0.0% | ||||||||||||||||||||
CommScope, Inc. (Index Floor: 0.00%) (Communications Equip.) | ML + 200 | 12/29/2022 | 54,000 | 51,030 | ||||||||||||||||
|
| |||||||||||||||||||
MATERIALS – 0.2% | ||||||||||||||||||||
Axalta Coating Systems U.S. Holdings, Inc. (Index Floor: 0.00%) (Chemicals) | QL + 175 | 06/01/2024 | 385,000 | 361,900 | ||||||||||||||||
Reynolds Group Holdings, Inc. (Index Floor: 0.00%) (Containers & Packaging) | ML + 275 | 02/05/2023 | 153,284 | 145,620 | ||||||||||||||||
|
| |||||||||||||||||||
507,520 | ||||||||||||||||||||
|
| |||||||||||||||||||
UTILITIES – 0.2% | ||||||||||||||||||||
NRG Energy, Inc. (Index Floor: 0.00%) (Ind. Power & Renewable Elec.) | QL + 175 | 06/30/2023 | 286,000 | 274,417 | ||||||||||||||||
Vistra Operations Co. LLC (Index Floor: 0.00%) (Ind. Power & Renewable Elec.) | ML + 200 | 08/04/2023 | 502,594 | 483,466 | ||||||||||||||||
|
| |||||||||||||||||||
757,883 | ||||||||||||||||||||
|
| |||||||||||||||||||
Total Bank Loans (Cost $3,093,784) | $ | 2,957,261 | ||||||||||||||||||
|
|
107 | (continued) |
Ohio National Fund, Inc. | ON Risk Managed Balanced Portfolio (Continued) |
Schedule of Investments | December 31, 2018 |
Master Limited Partnerships – 0.4% | Shares | Value | ||||||||||||||
| ||||||||||||||||
FINANCIALS – 0.4% | ||||||||||||||||
Blackstone Group LP / The (Capital Markets) | 51,045 | $ | 1,521,651 | |||||||||||||
|
| |||||||||||||||
Total Master Limited Partnerships (Cost $1,204,795) | $ | 1,521,651 | ||||||||||||||
|
| |||||||||||||||
Preferred Securities – 0.2% | Rate | Quantity | Value | |||||||||||||
| ||||||||||||||||
FINANCIALS – 0.2% | ||||||||||||||||
Goldman Sachs Capital I (Capital Markets) | 6.345% | 497,000 | $ | 555,184 | ||||||||||||
|
| |||||||||||||||
Total Preferred Securities (Cost $580,690) | $ | 555,184 | ||||||||||||||
|
| |||||||||||||||
Money Market Funds – 11.4% | Shares | Value | ||||||||||||||
| ||||||||||||||||
State Street Institutional Liquid Reserves Fund Institutional Class, 2.50% | (f) | 36,098,520 | $ | 36,094,910 | ||||||||||||
State Street Institutional U.S. Government Money Market Fund Institutional Class, 2.27% | (f) | 3,359,945 | 3,359,945 | |||||||||||||
|
| |||||||||||||||
Total Money Market Funds (Cost $39,459,610) | $ | 39,454,855 | ||||||||||||||
|
| |||||||||||||||
Total Investments – 100.1% (Cost $324,655,316) | (g) | $ | 347,387,661 | |||||||||||||
Liabilities in Excess of Other Assets – (0.1)% | (b) | (319,965 | ) | |||||||||||||
|
| |||||||||||||||
Net Assets – 100.0% | $ | 347,067,696 | ||||||||||||||
|
| |||||||||||||||
|
Percentages are stated as a percent of net assets.
Abbreviations:
CLO: | Collaterized Loan Obligation |
ML: | Monthly U.S. LIBOR Rate, 2.503% at 12/31/2018 |
QL: | Quarterly U.S. LIBOR Rate, 2.808% at 12/31/2018 |
Footnotes:
(a) | Non-income producing security. |
(b) | Security is fully or partially pledged, in addition to $1,181,160 of the Portfolio’s cash holdings, as collateral for the futures contracts outstanding at December 31, 2018. See also the following Schedule of Open Futures Contracts. |
(c) | Security exempt from registration under Regulation D of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified buyers under Rule 144A. At December 31, 2018, the value of these securities totaled $17,633,185, or 5.1% of the Portfolio’s net assets. |
(d) | Security is a fixed-then-variable rate instrument in which the coupon or dividend rate is fixed until a later specified date, then is adjusted periodically. Rates stated, including interest rate caps and floors, if any, are those in effect at December 31, 2018. |
(e) | 100 shares per contract. |
(f) | Rate represents theseven-day yield at December 31, 2018. |
(g) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
Schedule of Open Futures Contracts | December 31, 2018 |
Description | Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable (Payable) | ||||||||||||||||||||||||
CMEE-mini S&P 500 Index - Long | 401 | March 15, 2019 | $ | 51,755,366 | $ | 50,229,260 | $(1,526,106) | $ | 369,023 | |||||||||||||||||||||
10-Year U.S. Treasury Note - Long | 1,408 | March 20, 2019 | 167,721,756 | 171,798,000 | 4,076,244 | 550,007 | ||||||||||||||||||||||||
U.S. Treasury Long Bond - Long | 31 | March 20, 2019 | 4,319,376 | 4,526,000 | 206,624 | 14,531 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 223,796,498 | $ | 226,553,260 | $ 2,756,762 | $ | 933,561 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
108 |
Ohio National Fund, Inc. |
Objective/Strategy |
The ON Conservative Model Portfolio is a fund of funds that seeks current income and preservation of capital by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity0-25%, International Equity0-10%, and Fixed Income65-90%.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -3.04 | % | ||
Since inception (3/1/17) | 1.14 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total gross expense ratio is estimated to be 1.08% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights. The Portfolio’s expense ratio included in the Financial Highlights does not include Acquired Fund Fees and Expenses (AFFE), which is a major component of the expense ratio that is required to be presented in the Fund’s prospectus. The Adviser has contractually agreed to make payments to the Fund to the extent necessary to maintain the Portfolio’s expense ratio (including AFFE, but excluding certain other expenses) at 0.87% through April 30, 2019.
Comments from Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A. For the year ended December 31, 2018, the ON Conservative Model Portfolio returned-3.04% versus-1.20% for its benchmark, the Morningstar® Conservative Target Risk Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A. In 2018, domestic equity markets generally provided negative returns. Foreign and emerging equity markets generally provided larger negative returns, after adjusting for currency translation. Large cap stocks generally outperformed mid cap and small cap stocks, and growth stocks generally outperformed value stocks during the period. The Portfolio’s underweight to mid cap and small cap stocks benefited performance vs. the benchmark, while the overweight to value stocks detracted from performance vs. the benchmark. However, the performance of the underlying funds in the Portfolio vs. their respective benchmarks was the primary driver of underperformance during the year.(1)
Fixed income markets generally provided negative returns for the period. Long term interest rates increased, while the Federal Reserve continued to increase short term interest rates. In this environment, shorter duration bonds outperformed longer duration bonds. Corporate credit spreads widened, and lower quality bonds underperformed higher quality bonds during the period. Corporate and high yield bonds generally underperformed other sectors of the bond market. The Portfolio’s
exposure to short duration and inflation linked bonds benefited performance vs. the benchmark, while exposure to corporate and high yield bonds detracted from performance vs. the benchmark.(1)
Q. How did asset class allocation impact the Portfolio’s performance relative to its benchmark?
A. The Portfolio invests in affiliated and unaffiliatedopen-end mutual funds, comprised mostly of fixed income funds, but also some equity funds. The asset allocation between fixed income funds and equity funds was roughlyin-line with the benchmark. On the equity side, the overweight allocation to large cap domestic equity funds added to performance vs. the benchmark, which has a larger allocation to mid cap and small cap funds. On the fixed income side, the overweight allocation to low duration and inflation protected bonds aided performance vs. the benchmark, while the allocation to high yield and corporate bonds detracted from performance relative to the benchmark during the period.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A. The top three performing funds in the Portfolio were the PIMCO Low Duration Institutional fund, the PIMCO Total Return Institutional fund, and the Western Asset Core Plus Bond IS fund. The PIMCO Low Duration Institutional fund benefited from its shorter duration in a rising interest rate environment. The PIMCO Total Return Institutional fund benefited from its shorter duration and exposure to higher quality bonds, while the Western Asset Core Plus Bond IS fund benefited from its exposure to higher quality bonds.(1)
The three funds that detracted most from benchmark relative performance were the DFA International Core Equity Portfolio Institutional fund, the Templeton Foreign Class R6 fund, and the Ohio National Fund, Inc. – ON International Equity Portfolio. All of these funds are international equity funds, and international stocks underperformed domestic stocks in 2018.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A. The members of the asset allocation committee changed during the second half of 2018. Tara York, CFA joined the committee, while Todd Brockman and Dan Leming left the committee. There were no other significant changes during the year, although exposure to small and mid cap funds was increased near the end of the year.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
109 | (continued) |
Ohio National Fund, Inc. | ON Conservative Model Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Morningstar® Target Risk Index Family is a series of Morningstar Indexes that provide exposure to a broad array of asset classes using Morningstar asset allocation methodology. The index family provides global equity market risk levels that are scaled to fit five equity market risk profiles: aggressive, moderately aggressive, moderate, moderately conservative, and conservative. The five levels of global equity exposure are set at 95%, 80%, 60%, 40%, and 20%, respectively, and the Morningstar® Conservative Target Risk Index exposure is set at 20%.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||
Open-End Mutual Funds | ||
Less Net Liabilities | 100.0 | |
| ||
100.0 | ||
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Western Asset Core Plus Bond IS | 22.3 | ||||
2. | PIMCO Total Return Institutional | 17.2 | ||||
3. | PIMCO Real Return Institutional | 15.1 | ||||
4. | PIMCO Low Duration Institutional | 11.1 | ||||
5. | Ohio National Fund, Inc. - ON S&P 500® Index Portfolio | 10.7 | ||||
6. | Ohio National Fund, Inc. - ON Bond Portfolio | 7.0 | ||||
7. | Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | 6.9 | ||||
8. | Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | 2.9 | ||||
9. | Ohio National Fund, Inc. - ON International Equity Portfolio | 2.0 | ||||
10. | Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | 1.9 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
110
Ohio National Fund, Inc. | ON Conservative Model Portfolio |
Schedule of Investments in Unaffiliated Issuers | December 31, 2018 |
Open-End Mutual Funds – 66.6% | Shares | Value | ||||||||||
DFA International Core Equity Portfolio Institutional | 66,868 | $ | 782,362 | |||||||||
PIMCO Low Duration Institutional | 900,910 | 8,738,829 | ||||||||||
PIMCO Real Return Institutional | 1,129,258 | 11,924,965 | ||||||||||
PIMCO Total Return Institutional | 1,365,546 | 13,559,868 | ||||||||||
Western Asset Core Plus Bond IS | 1,571,222 | 17,597,685 | ||||||||||
|
| |||||||||||
TotalOpen-End Mutual Funds | $ | 52,603,709 | ||||||||||
|
| |||||||||||
Total Investments in Securities of Unaffiliated Issuers – 66.6% (Cost $54,103,542) | (a | ) | $ | 52,603,709 | ||||||||
Total Investments in Affiliates – 33.4% (Cost $27,728,259) (see schedule below) | (a | ) | 26,426,249 | |||||||||
Liabilities in Excess of Other Assets – 0.0% | (29,892 | ) | ||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 79,000,066 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments in Affiliates | December 31, 2018 |
Affiliate | Value at January 1, 2018 | Cost of Purchases | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Income Distributions | Capital Gain Distributions | Shares at December 31, 2018 | Value at December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Open-End Mutual Funds – 33.4% |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Lazard International Equity Class R6 | (a) | $1,992,490 | $ 311,769 | $ | 2,316,853 | $ | 280,840 | $ | (268,246 | ) | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bond Portfolio | (b)(c) | 6,475,591 | 1,157,680 | 1,879,854 | (49,011 | ) | (146,659 | ) | — | — | 326,542 | 5,557,747 | ||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | (b)(c) | 6,973,714 | 1,157,720 | 2,480,348 | 87,122 | (267,282 | ) | — | — | 292,094 | 5,470,926 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | (b)(c) | 6,973,714 | 1,491,005 | 5,762,136 | 272,387 | (667,151 | ) | — | — | 140,979 | 2,307,819 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ICON Balanced Portfolio | (b)(c) | 5,977,469 | 345,001 | 6,452,212 | 468,626 | (338,884 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON International Equity Portfolio | (b)(c) | — | 2,183,902 | 365,408 | (11,159 | ) | (235,176 | ) | — | — | 120,288 | 1,572,159 | ||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Venture Portfolio | (b)(c) | — | 886,368 | 27,418 | (87 | ) | (91,038 | ) | — | — | 24,857 | 767,825 | ||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P 500®Index Portfolio | (b)(c) | 6,475,592 | 7,387,897 | 5,057,771 | 790,377 | (1,154,647 | ) | — | — | 300,300 | 8,441,448 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | (b)(c) | — | 1,749,181 | 46,591 | 130 | (177,225 | ) | — | — | 98,674 | 1,525,495 | |||||||||||||||||||||||||||||||||||||||
Templeton Foreign Class R6 | (a) | 1,992,490 | 427,263 | 1,483,431 | 125,309 | (278,801 | ) | 24,203 | — | 119,516 | 782,830 | |||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
TotalOpen-End Mutual Funds | $ | 1,964,534 | $ | (3,625,109 | ) | $ | 24,203 | $ | — | $ | 26,426,249 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment met the definition of “affiliated person” at a point in time during the year ended December 31, 2018, as the Portfolio directly or indirectly owned, controlled, or held with power to vote 5 percent or more of the outstanding voting securities of the holding. |
(b) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment meets the definition of “affiliated person”, as the Portfolio directly or indirectly owns, controls, or holds with power to vote 5 percent or more of the outstanding voting securities of the holding at December 31, 2018. |
(c) | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
111
Ohio National Fund, Inc. | ON Moderately Conservative Model Portfolio (Unaudited) |
Objective/Strategy |
The ON Moderately Conservative Model Portfolio is a fund of funds that seeks current income and moderate growth of capital with a greater emphasis on current income by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity20-40%, International Equity5-20%, and Fixed Income30-70%.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -5.61% | |||
Since inception (3/1/17) | 0.49% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total gross expense ratio is estimated to be 1.07% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights. The Portfolio’s expense ratio included in the Financial Highlights does not include Acquired Fund Fees and Expenses (AFFE), which is a major component of the expense ratio that is required to be presented in the Fund’s prospectus. The Adviser has contractually agreed to make payments to the Fund to the extent necessary to maintain the Portfolio’s expense ratio (including AFFE, but excluding certain other expenses) at 0.92% through April 30, 2019.
Comments from Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A. For the year ended December 31, 2018, the ON Moderately Conservative Model Portfolio returned-5.61% versus –2.87% for its benchmark, the Morningstar® Moderately Conservative Target Risk Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A. In 2018, domestic equity markets generally provided negative returns. Foreign and emerging equity markets generally provided larger negative returns, after adjusting for currency. Large cap stocks generally outperformed mid cap and small cap stocks, and growth stocks generally outperformed value stocks during the period. The Portfolio’s underweight to mid cap and small cap stocks benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. However, the performance of the underlying funds in the Portfolio vs. their respective benchmarks was the primary driver of underperformance during the year.(1)
Fixed income markets generally provided negative returns for the period. Long term interest rates increased, while the Federal Reserve continued to increase short term interest rates. In this environment, shorter duration bonds outperformed longer duration bonds. Corporate credit spreads widened, and lower quality bonds underperformed higher
quality bonds during the period. Corporate and high yield bonds generally underperformed other sectors of the bond market. The Portfolio’s exposure to short duration and inflation linked bonds benefited performance vs. the benchmark, while exposure to corporate and high yield bonds detracted from relative performance.(1)
Q. How did asset class allocation impact the Portfolio’s performance relative to its benchmark?
A. The Portfolio invests affiliated and unaffiliatedopen-end mutual funds, comprised mostly of fixed income funds, but also equity funds. The asset allocation to equity funds was slightly higher than the benchmark, which detracted slightly from performance vs. the benchmark. On the equity side, the overweight allocation to large cap domestic equity funds benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. On the fixed income side, the overweight allocation to low duration and inflation protected bonds aided performance vs. the benchmark, while the allocation to high yield and corporate bonds detracted from relative performance.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A. The top three performing funds in the Portfolio were the PIMCO Low Duration Institutional fund, the PIMCO Total Return Institutional fund, and the Western Asset Core Plus Bond IS fund. The PIMCO Low Duration Institutional fund benefited from its shorter duration in a rising interest rate environment. The PIMCO Total Return Institutional fund benefited from its shorter duration and exposure to higher quality bonds, while the Western Asset Core Plus Bond IS fund benefited from its exposure to higher quality bonds.(1)
The three funds that detracted most from relative performance were the DFA International Core Equity Portfolio Institutional fund (“DFA International”), the Fidelity Advisor® Mid Cap II Class I fund (“Fidelity Mid Cap”), and the Templeton Foreign Class R6 fund (“Templeton Foreign”). DFA International and Templeton Foreign are international equity funds, which underperformed domestic stocks in 2018. Fidelity Mid Cap is comprised primarily of mid cap stocks, which also underperformed during the period.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A. The members of the asset allocation committee changed during the second half of 2018. Tara York, CFA joined the committee, while Todd Brockman and Dan Leming left the committee. There were no significant changes to the investment strategy or selection process during the period. There were asset allocation changes made during the year that increased exposure to equity index, growth and mid cap funds, and decreased exposure to value and balanced funds.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
112 | (continued) |
Ohio National Fund, Inc. | ON Moderately Conservative Model Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Morningstar® Target Risk Index Family is a series of Morningstar Indexes that provide exposure to a broad array of asset classes using Morningstar asset allocation methodology. The index family provides global equity market risk levels that are scaled to fit five equity market risk profiles: aggressive, moderately aggressive, moderate, moderately conservative, and conservative. The five levels of global equity exposure are set at 95%, 80%, 60%, 40%, and 20%, respectively, and the Morningstar® Moderately Conservative Target Risk Index exposure is set at 40%.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Open-End Mutual Funds | ||||
Less Net Liabilities | 100.0 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Western Asset Core Plus Bond IS | 17.3 | ||||
2. | PIMCO Total Return Institutional | 13.3 | ||||
3. | Ohio National Fund, Inc. - ON S&P 500® Index Portfolio | 11.7 | ||||
4. | PIMCO Real Return Institutional | 9.1 | ||||
5. | PIMCO Low Duration Institutional | 8.1 | ||||
6. | Ohio National Fund, Inc. - ON Bond Portfolio | 6.1 | ||||
7. | Ohio National Fund, Inc. - ON International Equity Portfolio | 6.1 | ||||
8. | Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | 6.0 | ||||
9. | Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | 4.9 | ||||
10. | Ohio National Fund, Inc. - ON Equity Portfolio | 2.9 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
113
Ohio National Fund, Inc. | ON Moderately Conservative Model Portfolio |
Schedule of Investments in Unaffiliated Issuers | December 31, 2018 |
Open-End Mutual Funds – 50.8% | Shares | Value | ||||||||||
DFA International Core Equity Portfolio Institutional | 405,756 | $ | 4,747,350 | |||||||||
PIMCO Low Duration Institutional | 1,984,434 | 19,249,012 | ||||||||||
PIMCO Real Return Institutional | 2,052,172 | 21,670,932 | ||||||||||
PIMCO Total Return Institutional | 3,163,323 | 31,411,798 | ||||||||||
Vanguard International Growth Fund Admiral Class | 29,601 | 2,344,973 | ||||||||||
Western Asset Core Plus Bond IS | 3,671,920 | 41,125,504 | ||||||||||
|
| |||||||||||
TotalOpen-End Mutual Funds | $ | 120,549,569 | ||||||||||
|
| |||||||||||
Total Investments in Securities of Unaffiliated Issuers – 50.8% (Cost $125,037,930) | (a | ) | $ | 120,549,569 | ||||||||
Total Investments in Affiliates – 49.2% (Cost $125,273,445) (see schedule below) | (a | ) | 116,743,027 | |||||||||
Liabilities in Excess of Other Assets – 0.0% | (74,646 | ) | ||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 237,217,950 | ||||||||||
|
| |||||||||||
|
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments in Affiliates | December 31, 2018 |
Affiliate | Value at January 1, 2018 | Cost of Purchases | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Income Distributions | Capital Gain Distributions | Shares at December 31, 2018 | Value at December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Open-End Mutual Funds – 49.2% |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Fidelity Advisor®Mid Cap II Class I | (a) | $ | 6,513,631 | $ | 1,350,428 | $ | 2,179,756 | $ | 185,940 | $ | (1,358,790 | ) | $ | 25,568 | $ | 426,783 | 269,501 | $ | 4,511,453 | |||||||||||||||||||||||||||||||
Fidelity Advisor®Real Estate I | (a) | 6,513,631 | 891,793 | 4,764,401 | (357,399 | ) | (23,461 | ) | 71,756 | 80,937 | 116,204 | 2,260,163 | ||||||||||||||||||||||||||||||||||||||
Lazard International Equity Class R6 | (b) | 19,540,894 | 1,084,701 | 20,708,783 | 2,860,915 | (2,777,727 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bond Portfolio | (a)(c) | 17,912,486 | 2,008,066 | 4,945,738 | (140,609 | ) | (404,280 | ) | — | — | 847,822 | 14,429,925 | ||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bristol Growth Portfolio | (a)(c) | 6,513,631 | 897,996 | 7,365,380 | 1,007,434 | (1,053,681 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Equity Portfolio | (a)(c) | 22,797,709 | 2,111,473 | 16,982,042 | 1,300,921 | (2,371,969 | ) | — | — | 192,263 | 6,856,092 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | (a)(c) | 19,540,894 | 1,495,091 | 6,287,152 | 215,370 | (697,794 | ) | — | — | 761,688 | 14,266,409 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | (a)(c) | 26,054,525 | 2,172,284 | 14,747,588 | 512,470 | (2,333,482 | ) | — | — | 712,169 | 11,658,209 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ICON Balanced Portfolio | (a)(c) | 19,540,894 | 9,431 | 19,962,794 | 1,550,079 | (1,137,610 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON International Equity Portfolio | (a)(c) | — | 19,165,446 | 2,458,746 | (81,247 | ) | (2,271,134 | ) | — | — | 1,098,265 | 14,354,319 | ||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Enterprise Portfolio | (a)(c) | — | 3,072,222 | 481,816 | 4,966 | (279,496 | ) | — | — | 61,988 | 2,315,876 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Forty Portfolio | (a)(c) | — | 3,066,024 | 529,112 | 17,452 | (238,883 | ) | — | — | 110,419 | 2,315,481 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Venture Portfolio | (a)(c) | — | 2,610,650 | 62,090 | 322 | (284,315 | ) | — | — | 73,311 | 2,264,567 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ONNasdaq-100®Index Portfolio | (a)(c) | — | 6,126,095 | 964,869 | 27,209 | (583,007 | ) | — | — | 277,435 | 4,605,428 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P 500®Index Portfolio | (a)(c) | 17,912,486 | 21,566,383 | 10,315,595 | 1,684,617 | (3,105,218 | ) | — | — | 986,932 | 27,742,673 | |||||||||||||||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | (a)(c) | — | 8,139,155 | 317,971 | (18,887 | ) | (1,024,377 | ) | — | — | 438,416 | 6,777,920 | ||||||||||||||||||||||||||||||||||||||
Templeton Foreign Class R6 | (b) | 13,027,263 | 730,477 | 10,845,731 | 906,377 | (1,433,874 | ) | 74,062 | — | 364,048 | 2,384,512 | |||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
TotalOpen-End Mutual Funds | $ | 9,675,930 | $ | (21,379,098 | ) | $ | 171,386 | $ | 507,720 | $ | 116,743,027 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment meets the definition of “affiliated person”, as the Portfolio directly or indirectly owns, controls, or holds with power to vote 5 percent or more of the outstanding voting securities of the holding at December 31, 2018. |
(b) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment met the definition of “affiliated person” at a point in time during the year ended December 31, 2018, as the Portfolio directly or indirectly owned, controlled, or held with power to vote 5 percent or more of the outstanding voting securities of the holding. |
(c) | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
114
Ohio National Fund, Inc. | ON Balanced Model Portfolio (Unaudited) |
Objective/Strategy |
The ON Balanced Model Portfolio is a fund of funds that seeks a balance between growth of capital and current income with a greater emphasis on growth of capital by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity25-50%, International Equity10-25%, and Fixed Income25-50%.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -7.77% | |||
Since inception (3/1/17) | -0.16% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total gross expense ratio is estimated to be 1.11% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights. The Portfolio’s expense ratio included in the Financial Highlights does not include Acquired Fund Fees and Expenses (AFFE), which is a major component of the expense ratio that is required to be presented in the Fund’s prospectus. The Adviser has contractually agreed to make payments to the Fund to the extent necessary to maintain the Portfolio’s expense ratio (including AFFE, but excluding certain other expenses) at 0.99% through April 30, 2019.
Comments from Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A. For the year ended December 31, 2018, the ON Balanced Model Portfolio returned-7.77% versus-4.76% for its benchmark, the Morningstar® Moderate Target Risk Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A. In 2018, domestic equity markets generally provided negative returns. Foreign and emerging equity markets generally provided larger negative returns, after adjusting for currency translation. Large cap stocks generally outperformed mid cap and small cap stocks, and growth stocks generally outperformed value stocks during the period. The Portfolio’s underweight to mid cap stocks benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. However, the performance of the underlying funds in the Portfolio vs. their respective benchmarks was the primary driver of underperformance during the year.(1)
Fixed income markets generally provided negative returns for the period. Long term interest rates increased, while the Federal Reserve continued to increase short term interest rates. In this environment, shorter duration bonds outperformed longer duration bonds. Corporate credit spreads widened, and lower quality bonds underperformed higher quality bonds during the period. Corporate and high yield bonds generally
underperformed other sectors of the bond market. The Portfolio’s exposure to short duration and inflation linked bonds benefited performance vs. the benchmark, while exposure to corporate and high yield bonds detracted from relative performance.(1)
Q. How did asset class allocation impact the Portfolio’s performance relative to its benchmark?
A. The Portfolio invests in affiliated and unaffiliatedopen-end mutual funds, comprised of fixed income funds and equity funds. The asset allocation between fixed income funds and equity funds was roughlyin-line with the benchmark. On the equity side, the overweight allocation to large cap domestic equity funds benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. On the fixed income side, the overweight allocation to low duration and inflation protected bonds aided performance vs. the benchmark, while the allocation to high yield and corporate bonds detracted from relative performance.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A. The top three performing funds in the Portfolio were the PIMCO Low Duration Institutional fund, the PIMCO Total Return Institutional fund, and the Ohio National Fund, Inc. – ONNasdaq-100® Index Portfolio (“ONNasdaq-100® Index Portfolio.”) The PIMCO Low Duration Institutional fund benefited from its shorter duration in a rising interest rate environment. The PIMCO Total Return bond fund benefited from its shorter duration and exposure to higher quality bonds, while the ONNasdaq-100® Index Portfolio benefited from its exposure to large cap growth stocks. The three funds that detracted most from benchmark relative performance were the Lazard Emerging Markets Equity Class R6 fund (“Lazard EM Equity”), the Ohio National Fund, Inc. – ON Bristol Portfolio (“ON Bristol Portfolio”), and the DFA International Core Equity Portfolio Institutional fund (“DFA International”). Lazard EM Equity and DFA International are international equity funds, which underperformed domestic stock in 2018. ON Bristol Portfolio trailed the benchmark due to security selection.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A. The members of the asset allocation committee changed during the second half of 2018. Tara York, CFA joined the committee, while Todd Brockman and Dan Leming left the committee. There were no significant changes to the investment strategy or selection process during the period. There were asset allocation changes made during the year that increased exposure to equity index, growth and mid cap funds, and decreased exposure to value and balanced funds.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
115
Ohio National Fund, Inc. | ON Balanced Model Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Morningstar® Target Risk Index Family is a series of Morningstar Indexes that provide exposure to a broad array of asset classes using Morningstar asset allocation methodology. The index family provides global equity market risk levels that are scaled to fit five equity market risk profiles: aggressive, moderately aggressive, moderate, moderately conservative, and conservative. The five levels of global equity exposure are set at 95%, 80%, 60%, 40%, and 20%, respectively, and the Morningstar® Moderate Target Risk Index exposure is set at 60%.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Open-End Mutual Funds | ||||
Less Net Liabilities | 100.0 | |||
|
| |||
100.0 | ||||
|
|
Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Ohio National Fund, Inc. - ON S&P 500® Index Portfolio | 12.9 | ||||
2. | PIMCO Total Return Institutional | 10.2 | ||||
3. | Ohio National Fund, Inc. - ON International Equity Portfolio | 9.1 | ||||
4. | Western Asset Core Plus Bond IS | 7.2 | ||||
5. | PIMCO Real Return Institutional | 7.1 | ||||
6. | PIMCO Low Duration Institutional | 7.1 | ||||
7. | Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | 6.7 | ||||
8. | Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | 6.0 | ||||
9. | Ohio National Fund, Inc. - ON Bond Portfolio | 4.1 | ||||
10. | Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | 4.0 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
116
Ohio National Fund, Inc. | ON Balanced Model Portfolio |
Schedule of Investments in Unaffiliated Issuers | December 31, 2018 |
Open-End Mutual Funds – 40.7% | Shares | Value | ||||||||||
DFA Emerging Markets Portfolio Institutional | 680,892 | $ | 17,560,200 | |||||||||
DFA International Core Equity Portfolio Institutional | 2,971,792 | 34,769,960 | ||||||||||
Lazard Emerging Markets Equity Class R6 | 1,086,207 | 17,444,485 | ||||||||||
PIMCO Low Duration Institutional | 8,422,122 | 81,694,588 | ||||||||||
PIMCO Real Return Institutional | 7,742,160 | 81,757,212 | ||||||||||
PIMCO Total Return Institutional | 11,808,891 | 117,262,286 | ||||||||||
Vanguard International Growth Fund Admiral Class | 435,190 | 34,475,738 | ||||||||||
Western Asset Core Plus Bond IS | 7,337,048 | 82,174,938 | ||||||||||
|
| |||||||||||
TotalOpen-End Mutual Funds | $ | 467,139,407 | ||||||||||
|
| |||||||||||
Total Investments in Securities of Unaffiliated Issuers – 40.7% (Cost $494,495,166) | (a | ) | $ | 467,139,407 | ||||||||
Total Investments in Affiliates – 59.3% (Cost $730,984,545) (see schedule below) | (a | ) | 680,158,499 | |||||||||
Liabilities in Excess of Other Assets – 0.0% | (407,026 | ) | ||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 1,146,890,880 | ||||||||||
|
|
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments in Affiliates | December 31, 2018 |
Affiliate | Value at January 1, 2018 | Cost of Purchases | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Income Distributions | Capital Gain Distributions | Shares at December 31, 2018 | Value at December 31, 2018 | |||||||||||||||||||||||||||||
Open-End Mutual Funds – 59.3% |
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Fidelity Advisor®Mid Cap II Class I | (a) | $ | 46,855,864 | $ | 5,369,466 | $ | 10,370,674 | $ | 965,116 | $ | (9,688,808 | ) |
| $188,309 |
| $3,146,128 | 1,979,150 | $ | 33,130,964 | |||||||||||||||||||
Fidelity Advisor®Real Estate I | (a) | 31,237,243 | 2,742,046 | 21,050,573 | (546,049 | ) | (1,265,062 | ) | 350,016 | 398,698 | 571,599 | 11,117,605 | ||||||||||||||||||||||||||
Lazard International Equity Class R6 | (b) | 140,567,593 | 0 | 141,134,849 | 21,218,590 | (20,651,334 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bond Portfolio . | (a)(c) | 54,665,175 | 8,146,545 | 14,467,333 | (392,955 | ) | (1,298,085 | ) | — | — | 2,741,090 | 46,653,347 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bristol Portfolio. | (a)(c) | 46,855,864 | 3,658,504 | 10,903,097 | 1,911,521 | (8,649,652 | ) | — | — | 1,326,065 | 32,873,140 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ClearBridge Small Cap Portfolio | (a)(c) | 62,474,486 | 601,970 | 41,455,330 | 5,955,130 | (5,993,507 | ) | — | — | 413,700 | 21,582,749 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Equity Portfolio . | (a)(c) | 93,711,729 | 1,563,793 | 56,454,641 | 4,761,292 | (9,949,515 | ) | — | — | 943,148 | 33,632,658 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | (a)(c) | 78,093,107 | 337,928 | 30,799,618 | 1,516,414 | (3,074,243 | ) | — | — | 2,459,882 | 46,073,588 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | (a)(c) | 124,948,971 | 1,997,935 | 49,445,677 | 2,043,382 | (11,083,746 | ) | — | — | 4,182,093 | 68,460,865 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ICON Balanced Portfolio | (a)(c) | 124,948,971 | 454,684 | 128,487,870 | 10,830,152 | (7,745,937 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON International Equity Portfolio | (a)(c) | — | 132,920,863 | 10,942,505 | (562,017 | ) | (16,736,209 | ) | — | — | 8,009,191 | 104,680,132 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Enterprise Portfolio | (a)(c) | — | 14,534,105 | 1,789,402 | 11,251 | (1,385,590 | ) | — | — | 304,346 | 11,370,364 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Forty Portfolio | (a)(c) | — | 14,599,095 | 2,100,022 | 63,439 | (1,181,308 | ) | — | — | 542,738 | 11,381,204 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ONNasdaq-100®Index Portfolio | (a)(c) | 7,809,311 | 22,692,906 | 6,335,054 | 731,507 | (2,327,069 | ) | — | — | 1,359,735 | 22,571,601 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P 500®Index Portfolio | (a)(c) | 140,567,593 | 58,409,928 | 44,480,285 | 7,285,042 | (14,245,588 | ) | — | — | 5,248,548 | 147,536,690 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | (a)(c) | 15,618,621 | 80,866,233 | 5,432,403 | 119,543 | (13,674,479 | ) | — | — | 5,012,776 | 77,497,515 | |||||||||||||||||||||||||||
Templeton Foreign Class R6 | (b) | 109,330,350 | 927,261 | 95,145,075 | 7,448,001 | (10,964,460 | ) | 360,900 | — | 1,770,393 | 11,596,077 | |||||||||||||||||||||||||||
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TotalOpen-End Mutual Funds | $ | 63,359,359 | $ | (139,914,592 | ) | $ | 899,225 | $ | 3,544,826 | $ | 680,158,499 | |||||||||||||||||||||||||||
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117
Ohio National Fund, Inc. | ON Balanced Model Portfolio (Continued) |
Schedule of Investments in Affiliates | December 31, 2018 |
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment meets the definition of “affiliated person”, as the Portfolio directly or indirectly owns, controls, or holds with power to vote 5 percent or more of the outstanding voting securities of the holding at December 31, 2018. |
(b) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment met the definition of “affiliated person” at a point in time during the year ended December 31, 2018, as the Portfolio directly or indirectly owned, controlled, or held with power to vote 5 percent or more of the outstanding voting securities of the holding. |
(c) | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
118
Ohio National Fund, Inc. | ON Moderate Growth Model Portfolio (Unaudited) |
Objective/Strategy |
The ON Moderate Growth Model Portfolio is a fund of funds that seeks growth of capital and moderate current income with a greater emphasis on growth of capital by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity40-60%, International Equity15-35%, and Fixed Income10-30%.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -10.14% | |||
Since inception (3/1/17) | -0.38% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total gross expense ratio is estimated to be 1.14% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights. The Portfolio’s expense ratio included in the Financial Highlights does not include Acquired Fund Fees and Expenses (AFFE), which is a major component of the expense ratio that is required to be presented in the Fund’s prospectus. The Adviser has contractually agreed to make payments to the Fund to the extent necessary to maintain the Portfolio’s expense ratio (including AFFE, but excluding certain other expenses) at 1.04% through April 30, 2019.
Comments from Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Moderate Growth Model Portfolio returned-10.14% versus-6.74% for its benchmark, the Morningstar® Moderately Aggressive Target Risk Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.In 2018, domestic equity markets generally provided negative returns. Foreign and emerging equity markets generally provided larger negative returns, after adjusting for currency translation. Large cap stocks generally outperformed mid cap and small cap stocks, and growth stocks generally outperformed value stocks during the period. The Portfolio’s underweight to mid cap stocks benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. However, the performance of the underlying funds in the Portfolio vs their respective benchmarks was the primary driver of underperformance during the year.(1)
Fixed income markets generally provided negative returns for the period. Long term interest rates increased, while the Federal Reserve continued to increase short term interest rates. In this environment, shorter duration bonds outperformed longer duration bonds. Corporate credit spreads widened, and lower quality bonds underperformed higher quality bonds during the period. Corporate and high yield bonds generally
underperformed other sectors of the bond market. The Portfolio’s exposure to short duration and inflation linked bonds benefited performance vs. the benchmark, while exposure to corporate and high yield bonds detracted from relative performance.(1)
Q. How did asset class allocation impact the Portfolio’s performance relative to its benchmark?
A.The Portfolio invests in affiliated and unaffiliatedopen-end mutual funds, comprised mostly of equity funds, but also of fixed income funds. The asset allocation between fixed income funds and equity funds was roughlyin-line with the benchmark. On the equity side, the overweight allocation to large cap domestic equity funds benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. On the fixed income side, the overweight allocation to low duration and inflation protected bonds aided performance vs. the benchmark, while the allocation to high yield and corporate bonds detracted from relative performance.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The top three performing funds in the Portfolio were the PIMCO Low Duration Institutional fund, the Ohio National Fund, Inc. – ONNasdaq-100® Index Portfolio (“ONNasdaq-100® Index Portfolio.”), and the Western Asset Core Plus Bond IS fund. The PIMCO Low Duration Institutional fund benefited from its shorter duration in a rising interest rate environment. The ONNasdaq-100® Index Portfolio benefited from its exposure to large cap growth stocks, while the Western Asset Core Plus Bond IS fund benefited from its exposure to higher quality bonds.(1)
The three funds that detracted from most from performance vs. the benchmark were the Lazard Emerging Markets Equity Class R6 fund (“Lazard EM Equity”), the Ohio National Fund, Inc. – ON Bristol Portfolio (“ON Bristol Portfolio”), and the DFA International Core Equity Portfolio Institutional fund (“DFA International”). Lazard EM Equity and DFA International are international equity funds, which underperformed domestic stock in 2018. The ON Bristol Portfolio trailed the benchmark due to security selection.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A.The members of the asset allocation committee changed during the second half of 2018. Tara York, CFA joined the committee, while Todd Brockman and Dan Leming left the committee. There were no significant changes to the investment strategy or selection process during the period. There were asset allocation changes made during the year that increased exposure to equity index, growth and mid cap funds, and decreased exposure to value and balanced funds.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
119 | (continued) |
Ohio National Fund, Inc. | ON Moderate Growth Model Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Morningstar® Target Risk Index Family is a series of Morningstar Indexes that provide exposure to a broad array of asset classes using Morningstar asset allocation methodology. The index family provides global equity market risk levels that are scaled to fit five equity market risk profiles: aggressive, moderately aggressive, moderate, moderately conservative, and conservative. The five levels of global equity exposure are set at 95%, 80%, 60%, 40%, and 20%, respectively, and the Morningstar® Moderately Aggressive Target Risk Index exposure is set at 80%.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Open-End Mutual Funds | ||||
Less Net Liabilities | 100.0 | |||
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100.0 | ||||
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Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Ohio National Fund, Inc. - ON S&P 500® Index Portfolio | 16.0 | ||||
2. | Ohio National Fund, Inc. - ON International Equity Portfolio | 11.1 | ||||
3. | Western Asset Core Plus Bond IS | 10.1 | ||||
4. | Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | 7.0 | ||||
5. | Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | 6.9 | ||||
6. | DFA International Core Equity Portfolio Institutional | 5.1 | ||||
7. | Ohio National Fund, Inc. - ON Janus Henderson Venture Portfolio | 4.2 | ||||
8. | Vanguard International Growth Fund Admiral Class | 4.0 | ||||
9. | Ohio National Fund, Inc. - ONNasdaq-100®Index Portfolio | 4.0 | ||||
10. | Fidelity Advisor®Mid Cap II Class I | 3.9 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
120
Ohio National Fund, Inc. | ON Moderate Growth Model Portfolio |
Schedule of Investments in Unaffiliated Issuers | December 31, 2018 |
Open-End Mutual Funds – 26.6% | Shares | Value | ||||||||||
DFA Emerging Markets Portfolio Institutional | 1,526,825 | $ | 39,376,829 | |||||||||
DFA International Core Equity Portfolio Institutional. | 8,393,717 | 98,206,490 | ||||||||||
Lazard Emerging Markets Equity Class R6 | 2,443,961 | 39,250,006 | ||||||||||
PIMCO Low Duration Institutional | 4,653,494 | 45,138,895 | ||||||||||
PIMCO Real Return Institutional | 1,859,371 | 19,634,957 | ||||||||||
Vanguard International Growth Fund Admiral Class | 987,452 | 78,225,935 | ||||||||||
Western Asset Core Plus Bond IS | 17,596,466 | 197,080,418 | ||||||||||
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TotalOpen-End Mutual Funds | $ | 516,913,530 | ||||||||||
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Total Investments in Securities of Unaffiliated Issuers – 26.6% (Cost $576,376,680) | (a | ) | $ | 516,913,530 | ||||||||
Total Investments in Affiliates – 73.4% (Cost $1,534,225,022) (see schedule below) | (a | ) | 1,428,848,372 | |||||||||
Liabilities in Excess of Other Assets – 0.0% | (773,057 | ) | ||||||||||
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Net Assets – 100.0% | $ | 1,944,988,845 | ||||||||||
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Percentages are stated as a percent of net assets.
Footnotes:
(a) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments in Affiliates | December 31, 2018 |
Affiliate | Value at January 1, 2018 | Cost of Purchases | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Income Distributions | Capital Gain Distributions | Shares at December 31, 2018 | Value at December 31, 2018 | |||||||||||||||||||||||||||||
Open-End Mutual Funds – 73.4% |
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Fidelity Advisor® Mid Cap II Class I | (a) | $ | 105,859,654 | $ | 10,354,653 | $ | 19,535,183 | $ | 1,647,963 | $ | (21,958,566 | ) | $ | 433,847 | $7,231,855 | 4,562,038 | $ | 76,368,521 | ||||||||||||||||||||
Fidelity Advisor®Real Estate I | (a) | 52,929,827 | 5,736,665 | 36,622,630 | (1,809,024 | ) | (1,228,232 | ) | 604,794 | 681,612 | 977,203 | 19,006,606 | ||||||||||||||||||||||||||
Lazard International Equity Class R6 | (b) | 291,114,049 | 0 | 292,159,572 | 38,354,841 | (37,309,318 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc.- ON Bond Portfolio | (a)(c) | 66,162,284 | 2,695,188 | 17,793,901 | (512,158 | ) | (1,524,870 | ) | — | — | 2,880,525 | 49,026,543 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bristol Growth Portfolio | (a)(c) | 79,394,741 | 4,727,839 | 17,770,987 | 3,567,848 | (12,706,942 | ) | — | — | 2,778,655 | 57,212,499 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bristol Portfolio | (a)(c) | 79,394,741 | 4,808,371 | 15,402,052 | 2,639,136 | (14,485,847 | ) | — | — | 2,297,473 | 56,954,349 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bryton Growth Portfolio | (a)(c) | 18,525,439 | 601,466 | 20,892,213 | 4,195,661 | (2,430,353 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ClearBridge Small Cap Portfolio | (a)(c) | 79,394,741 | 818,119 | 62,984,486 | 7,838,287 | (6,409,622 | ) | — | — | 357,620 | 18,657,039 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Equity Portfolio | (a)(c) | 211,719,309 | 1,485,771 | 145,377,302 | 11,287,425 | (21,072,908 | ) | — | — | 1,627,658 | 58,042,295 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | (a)(c) | 79,394,741 | 1,638,298 | 40,772,111 | 1,931,641 | (3,219,872 | ) | — | — | 2,080,763 | 38,972,697 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | (a)(c) | 264,649,136 | 8,271,726 | 117,751,689 | 3,424,080 | (22,569,553 | ) | — | — | 8,309,328 | 136,023,700 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ICON Balanced Portfolio | (a)(c) | 185,254,395 | 305,775 | 190,442,329 | 15,914,248 | (11,032,089 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON International Equity Portfolio | (a)(c) | — | 278,656,527 | 25,581,576 | (2,164,080 | ) | (34,707,964 | ) | — | — | 16,541,921 | 216,202,907 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Enterprise Portfolio | (a)(c) | — | 24,817,364 | 2,802,344 | 1,208 | (2,414,598 | ) | — | — | 524,669 | 19,601,630 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Forty Portfolio | (a)(c) | — | 74,461,597 | 9,847,932 | 250,801 | (6,130,707 | ) | — | — | 2,800,847 | 58,733,759 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Venture Portfolio | (a)(c) | 119,092,111 | 3,214,597 | 38,615,475 | 7,753,098 | (10,736,643 | ) | — | — | 2,612,745 | 80,707,688 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ONNasdaq-100® Index Portfolio | (a)(c) | 26,464,913 | 76,324,980 | 19,614,884 | 2,264,559 | (7,883,068 | ) | — | — | 4,672,078 | 77,556,500 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P 500®Index Portfolio | (a)(c) | 272,588,610 | 131,578,158 | 75,877,338 | 12,177,951 | (28,343,429 | ) | — | — | 11,103,663 | 312,123,952 | |||||||||||||||||||||||||||
Ohio National Fund, Inc.- ON S&P MidCap 400® Index Portfolio | (a)(c) | — | 161,676,845 | 4,033,471 | (324,525 | ) | (23,272,709 | ) | — | — | 8,670,514 | 134,046,140 | ||||||||||||||||||||||||||
Templeton Foreign Class R6 | (b) | 264,649,136 | 1,749,375 | 240,205,762 | 13,308,775 | (19,889,977 | ) | 615,965 | — | 2,994,129 | 19,611,547 | |||||||||||||||||||||||||||
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TotalOpen-End Mutual Funds | $ | 121,747,735 | $ | (289,327,267 | ) | $ | 1,654,606 | $ | 7,913,467 | $ | 1,428,848,372 | |||||||||||||||||||||||||||
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121 | (continued) |
Ohio National Fund, Inc. | ON Moderate Growth Model Portfolio (Continued) |
Schedule of Investments in Affiliates | December 31, 2018 |
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment meets the definition of “affiliated person”, as the Portfolio directly or indirectly owns, controls, or holds with power to vote 5 percent or more of the outstanding voting securities of the holding at December 31, 2018. |
(b) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment met the definition of “affiliated person” at a point in time during the year ended December 31, 2018, as the Portfolio directly or indirectly owned, controlled, or held with power to vote 5 percent or more of the outstanding voting securities of the holding. |
(c) | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
122
Ohio National Fund, Inc. | ON Growth Model Portfolio (Unaudited) |
Objective/Strategy |
The ON Growth Model Portfolio is a fund of funds that seeks growth of capital and some current income by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity50-80%, International Equity15-45%, and Fixed Income0-15%.
Performance as of December 31, 2018 |
Average Annual returns | ||||
One year | -11.57% | |||
Since inception (3/1/17) | -0.76% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price and reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information up to the most recent month end, call toll-free1-877-781-6392.
The Portfolio is not open to direct retail investment. Beneficial interest in shares is obtained solely by purchase of variable life insurance policies and variable annuity contracts. Actual performance results for variable annuity and variable universal life contracts will be lower due to contract charges. Consult your contract for applicable charges.
Total gross expense ratio is estimated to be 1.21% per the Fund’s prospectus dated May 1, 2018. Additional information pertaining to the Portfolio’s expense ratio as of December 31, 2018 can be found in the Portfolio’s Financial Highlights. The Portfolio’s expense ratio included in the Financial Highlights does not include Acquired Fund Fees and Expenses (AFFE), which is a major component of the expense ratio that is required to be presented in the Fund’s prospectus. The Adviser has contractually agreed to make payments to the Fund to the extent necessary to maintain the Portfolio’s expense ratio (including AFFE, but excluding certain other expenses) at 1.08% through April 30, 2019.
Comments from Adviser |
Q. How did the Portfolio perform in comparison to its benchmark during the reporting period?
A.For the year ended December 31, 2018, the ON Growth Model Portfolio returned-11.57% versus-8.17% for its benchmark, the Morningstar® Aggressive Target Risk Index.
Q. Were there specific market conditions, investment strategies, or techniques that materially affected the Portfolio’s benchmark-relative performance during the reporting period?
A.In 2018, domestic equity markets generally provided negative returns. Foreign and emerging equity markets generally provided larger negative returns, after adjusting for currency translation. Large cap stocks generally outperformed mid cap and small cap stocks, and growth stocks generally outperformed value stocks during the period. The Portfolio’s underweight to midcap stocks benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. However, the performance of the underlying funds in the Portfolio vs their respective benchmarks was the primary driver of underperformance during the year.(1)
Fixed income markets generally provided negative returns for the period. Long term interest rates increased, while the Federal Reserve continued to increase short term interest rates. In this environment, shorter duration bonds outperformed longer duration bonds. Corporate credit spreads widened, and lower quality bonds underperformed higher quality bonds during the period. Corporate and high yield bonds generally underperformed other sectors of the bond market. The Portfolio’s
exposure to short duration and inflation linked bonds benefited performance vs. the benchmark, while exposure to corporate and high yield bonds detracted from relative performance.(1)
Q. How did asset class allocation impact the Portfolio’s performance relative to its benchmark?
A.The Portfolio invests in affiliated and unaffiliatedopen-end mutual funds, comprised mostly of equity funds, but also of fixed income funds. The asset allocation between fixed income funds and equity funds was roughlyin-line with the benchmark. On the equity side, the overweight allocation to large cap domestic equity funds benefited performance vs. the benchmark, while the overweight to value stocks detracted from relative performance. On the fixed income side, there were no material asset allocations that impacted performance vs. the benchmark during the period.(1)
Q. Which holdings contributed the most to, and detracted the most from, the Portfolio’s benchmark-relative performance?
A.The top three performing funds in the Portfolio were the Ohio National Fund, Inc. – ONNasdaq-100® Index Portfolio (“ONNasdaq-100® Index Portfolio.”), the Western Asset Core Plus Bond IS fund, and the Ohio National Fund, Inc. – (“ON Bond Portfolio”). ONNasdaq-100® Index Portfolio. benefited from its exposure to large cap growth stocks, while the Western Asset Core Plus Bond IS fund benefited from its exposure to higher quality bonds. The ON Bond Portfolio benefited from its intermediate bond positions.(1)
The three funds that detracted from performance vs. the benchmark were the Lazard Emerging Markets Equity Class R6 fund (“Lazard EM Equity”), the Ohio National Fund, Inc. – ON Bristol Portfolio (“ON Bristol Portfolio”), and the DFA International Core Equity Portfolio Institutional fund (“DFA International”). Lazard EM Equity and DFA International are international equity funds, which underperformed domestic stock in 2018. The ON Bristol Portfolio trailed the benchmark due to security selection.(1)
Q. Were there any significant changes to the Portfolio’s management team, investment strategy, or selection process during the reporting period?
A.The members of the asset allocation committee changed during the second half of 2018. Tara York, CFA joined the committee, while Todd Brockman and Dan Leming left the committee. There were no significant changes to the investment strategy or selection process during the period. There were asset allocation changes made during the year that increased exposure to equity index, growth and mid cap funds, and decreased exposure to value and balanced funds.(1)
(1) | The Portfolio’s composition is subject to change. Holdings and weightings are as of December 31, 2018. |
123 | (continued) |
Ohio National Fund, Inc. | ON Growth Model Portfolio (Unaudited) (Continued) |
Change in Value of $10,000 Investment |
Hypothetical illustration based on past performance. Future performance will vary. The Portfolio’s returns reflect reinvested dividends. The Portfolio’s holdings may differ significantly from the securities in the index. The index is unmanaged and therefore does not reflect the cost of portfolio management and accounting.
The Morningstar® Target Risk Index Family is a series of Morningstar Indexes that provide exposure to a broad array of asset classes using Morningstar asset allocation methodology. The index family provides global equity market risk levels that are scaled to fit five equity market risk profiles: aggressive, moderately aggressive, moderate, moderately conservative, and conservative. The five levels of global equity exposure are set at 95%, 80%, 60%, 40%, and 20%, respectively, and the Morningstar® Aggressive Target Risk Index exposure is set at 95%.
Past performance is no guarantee of future results. Redemption of fund shares could have tax implications unique to each shareholder.
Portfolio Composition as of December 31, 2018(1) |
% of Net Assets | ||||
Open-End Mutual Funds | ||||
Less Net Liabilities | 100.0 | |||
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100.0 | ||||
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Top 10 Portfolio Holdings as of December 31, |
% of Net Assets | ||||||
1. | Ohio National Fund, Inc. - ON S&P 500® Index Portfolio | 17.1 | ||||
2. | Ohio National Fund, Inc. - ON International Equity Portfolio | 13.1 | ||||
3. | Ohio National Fund, Inc. - ON S&P MidCap 400®Index Portfolio | 7.9 | ||||
4. | Ohio National Fund, Inc. - ONNasdaq-100®Index Portfolio | 7.0 | ||||
5. | Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | 7.0 | ||||
6. | DFA International Core Equity Portfolio Institutional | 6.1 | ||||
7. | Ohio National Fund, Inc. - ON Janus Henderson Venture Portfolio | 6.0 | ||||
8. | Vanguard International Growth Fund Admiral Class | 5.0 | ||||
9. | Ohio National Fund, Inc. - ON Janus Henderson Forty Portfolio | 4.0 | ||||
10. | Fidelity Advisor®Mid Cap II Class I | 4.0 |
(1) | Composition of Portfolio subject to change. |
(2) | Short-term investments have been excluded from the list of Top 10 Portfolio Holdings. |
(3) | Top 10 Portfolio Holdings is presented at an individual security level. Total investment exposure by issuer may be higher. |
124
Ohio National Fund, Inc. | ON Growth Model Portfolio |
Schedule of Investments in Unaffiliated Issuers | December 31, 2018 |
Open-End Mutual Funds – 17.6% | Shares | Value | ||||||||||
DFA Emerging Markets Portfolio Institutional | 416,214 | $ | 10,734,160 | |||||||||
DFA International Core Equity Portfolio Institutional | 2,193,910 | 25,668,750 | ||||||||||
Lazard Emerging Markets Equity Class R6 | 665,773 | 10,692,312 | ||||||||||
Vanguard International Growth Fund Admiral Class | 268,984 | 21,308,912 | ||||||||||
Western Asset Core Plus Bond IS | 575,774 | 6,448,668 | ||||||||||
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TotalOpen-End Mutual Funds | $ | 74,852,802 | ||||||||||
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Total Investments in Securities of Unaffiliated Issuers – 17.6% (Cost $89,222,043) | (a | ) | $ | 74,852,802 | ||||||||
Total Investments in Affiliates – 82.4% (Cost $375,654,330) (see schedule below) | (a | ) | 349,499,326 | |||||||||
Liabilities in Excess of Other Assets – 0.0% | (200,401 | ) | ||||||||||
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Net Assets – 100.0% | $ | 424,151,727 | ||||||||||
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Percentages are stated as a percent of net assets.
Footnotes:
(a) | Represents cost for financial reporting purposes, which may differ from cost basis for federal income tax purposes. See also Note 7 of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments in Affiliates | December 31, 2018 |
Affiliate | Value at January 1, 2018 | Cost of Purchases | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation | Income Distributions | Capital Gain Distributions | Shares at December 31, 2018 | Value at December 31 2018 | |||||||||||||||||||||||||||||
Open-End Mutual Funds – 82.4% |
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Fidelity Advisor®Mid Cap II Class I | (a) | $ | 21,755,922 | $ | 3,414,693 | $ | 3,880,325 | $ | 310,889 | $ | (4,844,931 | ) | $ | 94,995 | $ | 1,568,280 | 1,000,971 | $ | 16,756,248 | |||||||||||||||||||
Fidelity Advisor®Real Estate I | (a) | 10,877,961 | 2,250,263 | 8,313,091 | (631,015 | ) | (13,056 | ) | 132,147 | 150,769 | 214,451 | 4,171,062 | ||||||||||||||||||||||||||
Lazard International Equity Class R6 | (b) | 70,706,746 | 5,162,166 | 76,019,806 | 10,181,869 | (10,030,975 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bond Portfolio | (a)(c) | 2,719,490 | 3,121,295 | 1,471,125 | (41,809 | ) | (52,488 | ) | — | — | 251,196 | 4,275,363 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bristol Growth Portfolio | (a)(c) | 16,316,941 | 1,843,014 | 3,478,143 | 699,235 | (2,810,475 | ) | — | — | 610,518 | 12,570,572 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bristol Portfolio | (a)(c) | 21,755,922 | 2,574,539 | 4,066,954 | 686,996 | (4,266,161 | ) | — | — | 673,027 | 16,684,342 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Bryton Growth Portfolio | (a)(c) | 2,719,490 | 278,155 | 3,250,584 | 637,512 | (384,573 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ClearBridge Small Cap Portfolio | (a)(c) | 27,194,902 | 2,423,871 | 19,243,209 | 2,345,825 | (2,495,056 | ) | — | — | 196,019 | 10,226,333 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Equity Portfolio | (a)(c) | 43,511,844 | 2,933,419 | 36,379,587 | 2,546,995 | (4,155,580 | ) | — | — | 237,159 | 8,457,091 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated High Income Bond Portfolio | (a)(c) | 16,316,941 | 2,106,286 | 14,064,529 | 526,544 | (638,843 | ) | — | — | 226,717 | 4,246,399 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Federated Strategic Value Dividend Portfolio | (a)(c) | 59,828,785 | 7,782,082 | 33,552,933 | 1,037,998 | (5,464,954 | ) | — | — | 1,810,078 | 29,630,978 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON ICON Balanced Portfolio | (a)(c) | 32,633,883 | 247,470 | 33,544,937 | 2,553,762 | (1,890,178 | ) | — | — | — | — | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON International Equity Portfolio | (a)(c) | — | 71,676,497 | 6,480,229 | (648,164 | ) | (8,892,030 | ) | — | — | 4,258,307 | 55,656,074 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Enterprise Portfolio | (a)(c) | — | 5,432,857 | 606,716 | (5,584 | ) | (530,923 | ) | — | — | 114,819 | 4,289,634 | ||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Forty Portfolio | (a)(c) | — | 21,377,297 | 2,491,375 | 47,774 | (1,804,407 | ) | — | — | 816,847 | 17,129,289 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON Janus Henderson Venture Portfolio | (a)(c) | 32,633,883 | 3,508,082 | 9,480,646 | 1,922,567 | (3,277,922 | ) | — | — | 819,228 | 25,305,964 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ONNasdaq-100® Index Portfolio | (a)(c) | 5,438,980 | 32,749,689 | 6,103,702 | 704,086 | (3,050,868 | ) | — | — | 1,791,457 | 29,738,185 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P 500®Index Portfolio | (a)(c) | 65,267,766 | 25,375,306 | 14,285,824 | 2,247,185 | (6,125,264 | ) | — | — | 2,578,412 | 72,479,169 | |||||||||||||||||||||||||||
Ohio National Fund, Inc. - ON S&P MidCap 400® Index Portfolio | (a)(c) | 10,877,961 | 30,131,684 | 2,823,635 | 37,703 | (4,614,192 | ) | — | — | 2,173,967 | 33,609,521 | |||||||||||||||||||||||||||
Templeton Foreign Class R6 | (b) | 65,267,766 | 2,812,592 | 62,051,766 | 4,472,019 | (6,227,509 | ) | 134,075 | — | 652,382 | 4,273,102 | |||||||||||||||||||||||||||
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TotalOpen-End Mutual Funds | $ | 29,632,387 | $ | (71,570,385 | ) | $ | 361,217 | $ | 1,719,049 | $ | 349,499,326 | |||||||||||||||||||||||||||
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125 | (continued) |
Ohio National Fund, Inc. | ON Growth Model Portfolio (Continued) |
Schedule of Investments in Affiliates | December 31, 2018 |
Percentages are stated as a percent of net assets.
Footnotes:
(a) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment meets the definition of “affiliated person”, as the Portfolio directly or indirectly owns, controls, or holds with power to vote 5 percent or more of the outstanding voting securities of the holding at December 31, 2018. |
(b) | Pursuant to Section 2(a)(3) of the Investment Company Act of 1940, the investment met the definition of “affiliated person” at a point in time during the year ended December 31, 2018, as the Portfolio directly or indirectly owned, controlled, or held with power to vote 5 percent or more of the outstanding voting securities of the holding. |
(c) | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
126
Ohio National Fund, Inc.
| ||
December 31, 2018 |
ON | ON Janus | ||||||||||||||||||||||||||||||||||||||||||||
ON Capital | International | ON Janus | ON Janus | Henderson | |||||||||||||||||||||||||||||||||||||||||
ON Equity | ON Bond | ON Omni | Appreciation | Equity | ON Foreign | Henderson | Henderson | Enterprise | |||||||||||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Forty Portfolio | Venture Portfolio | Portfolio | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers, at value* | $ | 237,073,997 | $ | 258,098,024 | $ | 53,157,703 | $ | 90,252,087 | $ | 518,734,023 | $ | 55,036,400 | $ | 150,618,773 | $ | 207,094,792 | $ | 102,742,639 | |||||||||||||||||||||||||||
Cash | 5,072 | — | — | 6 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currencies, at value** | — | — | — | 6 | — | 10 | — | — | 7,818 | ||||||||||||||||||||||||||||||||||||
Receivable for securities sold | 18,774,425 | — | 164,809 | 1,069,772 | 626,949 | 13,558 | — | 304,715 | 61,850 | ||||||||||||||||||||||||||||||||||||
Receivable for fund shares sold | 2,550,602 | 50,360 | 185,490 | 2,482,035 | 976,946 | 28,626 | 76,249 | 453,057 | 91,843 | ||||||||||||||||||||||||||||||||||||
Dividends and accrued interest receivable | 117,398 | 2,862,391 | 177,716 | 112,849 | 325,617 | 87,180 | 52,654 | 68,548 | 26,867 | ||||||||||||||||||||||||||||||||||||
Foreign tax reclaim receivable | — | 11,984 | — | 17,337 | 320,073 | 58,314 | — | 15,135 | — | ||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 4,554 | 3,296 | 908 | 1,526 | 7,282 | 935 | 2,138 | 3,478 | 1,515 | ||||||||||||||||||||||||||||||||||||
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Total assets | 258,526,048 | 261,026,055 | 53,686,626 | 93,935,618 | 520,990,890 | 55,225,023 | 150,749,814 | 207,939,725 | 102,932,532 | ||||||||||||||||||||||||||||||||||||
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Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Cash overdraft | — | — | — | — | — | — | 70,005 | — | — | ||||||||||||||||||||||||||||||||||||
Payable for securities purchased | — | — | — | 553,276 | 569,066 | — | 1,038,592 | 192,928 | 160,537 | ||||||||||||||||||||||||||||||||||||
Payable for fund shares redeemed | 363,747 | 3,179,466 | 67,073 | 60,734 | 1,193,879 | 41,954 | 174,353 | 119,940 | 76,561 | ||||||||||||||||||||||||||||||||||||
Payable for investment management services | 176,247 | 121,396 | 28,556 | 64,751 | 337,659 | 41,008 | 101,334 | 143,849 | 75,651 | ||||||||||||||||||||||||||||||||||||
Accrued custody expense | 2,773 | 1,606 | 2,597 | 2,416 | 60,153 | 23,467 | 2,500 | 6,750 | 3,814 | ||||||||||||||||||||||||||||||||||||
Accrued professional fees | 15,554 | 15,557 | 15,555 | 15,555 | 15,558 | 15,556 | 15,555 | 15,555 | 15,555 | ||||||||||||||||||||||||||||||||||||
Accrued accounting fees | 7,019 | 10,252 | 4,488 | 3,365 | 15,159 | 5,185 | 4,393 | 6,631 | 3,498 | ||||||||||||||||||||||||||||||||||||
Accrued printing and filing fees | 3,014 | 3,413 | 1,075 | 1,442 | 6,013 | 1,108 | 2,088 | 2,589 | 1,595 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 3,706 | 3,681 | 3,734 | 3,725 | 8,741 | 3,723 | 3,711 | 3,691 | 3,722 | ||||||||||||||||||||||||||||||||||||
Withholding tax payable | — | — | — | — | 27,668 | 6,395 | — | 365 | 537 | ||||||||||||||||||||||||||||||||||||
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Total liabilities | 572,060 | 3,335,371 | 123,078 | 705,264 | 2,233,896 | 138,396 | 1,412,531 | 492,298 | 341,470 | ||||||||||||||||||||||||||||||||||||
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Net assets | $ | 257,953,988 | $ | 257,690,684 | $ | 53,563,548 | $ | 93,230,354 | $ | 518,756,994 | $ | 55,086,627 | $ | 149,337,283 | $ | 207,447,427 | $ | 102,591,062 | |||||||||||||||||||||||||||
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Net assets consist of: | |||||||||||||||||||||||||||||||||||||||||||||
Paid in capital | 264,793,563 | 271,623,015 | 60,983,923 | 101,904,172 | 596,247,361 | 64,058,301 | 152,105,045 | 187,487,345 | 111,561,884 | ||||||||||||||||||||||||||||||||||||
Total distributable earnings | (6,839,575 | ) | (13,932,331 | ) | (7,420,375 | ) | (8,673,818 | ) | (77,490,367 | ) | (8,971,674 | ) | (2,767,762 | ) | 19,960,082 | (8,970,822 | ) | ||||||||||||||||||||||||||||
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Net assets | $ | 257,953,988 | $ | 257,690,684 | $ | 53,563,548 | $ | 93,230,354 | $ | 518,756,994 | $ | 55,086,627 | $ | 149,337,283 | $ | 207,447,427 | $ | 102,591,062 | |||||||||||||||||||||||||||
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*Investments in securities of unaffiliated issuers, at cost | $ | 242,238,771 | $ | 270,676,283 | $ | 60,189,324 | $ | 98,636,278 | $ | 582,731,103 | $ | 63,962,618 | $ | 153,385,092 | $ | 186,393,155 | $ | 111,624,046 | |||||||||||||||||||||||||||
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**Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 16 | $ | — | $ | — | $ | 7,812 | |||||||||||||||||||||||||||
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Shares outstanding, par value, $1 per share | 7,233,608 | 15,138,545 | 1,923,376 | 2,470,983 | 39,686,828 | 1,965,158 | 7,121,647 | 6,714,935 | 2,745,646 | ||||||||||||||||||||||||||||||||||||
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Authorized Fund shares allocated to Portfolio | 35,000,000 | 30,000,000 | 15,000,000 | 25,000,000 | 90,000,000 | 32,000,000 | 24,000,000 | 30,000,000 | 21,000,000 | ||||||||||||||||||||||||||||||||||||
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Net asset value per share | $ | 35.66 | $ | 17.02 | $ | 27.85 | $ | 37.73 | $ | 13.07 | $ | 28.03 | $ | 20.97 | $ | 30.89 | $ | 37.36 | |||||||||||||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
127
Ohio National Fund, Inc.
| ||
Statements of Assets and Liabilities | December 31, 2018 |
ON Federated | ON Federated | ON S&P | |||||||||||||||||||||||||||||||||||||||||||
ON S&P 500® | Strategic Value | High Income | ON ClearBridge | ON Nasdaq-100® | ON Bryton | ON ICON | MidCap 400® | ||||||||||||||||||||||||||||||||||||||
Index | Dividend | Bond | Small Cap | Index | ON Bristol | Growth | Balanced | Index | |||||||||||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers, at value* | $ | 1,111,023,019 | $ | 320,090,363 | $ | 199,340,660 | $ | 125,832,635 | $ | 326,550,962 | $ | 152,051,363 | $ | 22,847,886 | $ | 466,306,290 | $ | 306,456,686 | |||||||||||||||||||||||||||
Cash | 6,876 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash subject to usage restrictions | 438,000 | — | — | — | 60,800 | — | — | — | 16,400 | ||||||||||||||||||||||||||||||||||||
Foreign currencies, at value** | — | 112,394 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Receivable for securities sold | 333,113 | — | — | — | 60,267 | 619,724 | 2,035,254 | 1,458,132 | 277,040 | ||||||||||||||||||||||||||||||||||||
Receivable for fund shares sold | 827,344 | 15,309 | 47,852 | 424,084 | 825,179 | 2,861,705 | 1,658,473 | 2,594,719 | 38,244 | ||||||||||||||||||||||||||||||||||||
Receivable for variation margin on futures contracts | — | — | — | — | 265,541 | — | — | — | 90,927 | ||||||||||||||||||||||||||||||||||||
Dividends and accrued interest receivable | 1,293,658 | 1,953,033 | 3,598,109 | 179,328 | 211,376 | 187,208 | 18,101 | 1,840,634 | 358,470 | ||||||||||||||||||||||||||||||||||||
Foreign tax reclaim receivable | — | 410,198 | — | — | — | — | — | 27,160 | 7,152 | ||||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 16,400 | 5,346 | 3,193 | 3,323 | 5,176 | 2,578 | 707 | 10,687 | 2,414 | ||||||||||||||||||||||||||||||||||||
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Total assets | 1,113,938,410 | 322,586,643 | 202,989,814 | 126,439,370 | 327,979,301 | 155,722,578 | 26,560,421 | 472,237,622 | 307,247,333 | ||||||||||||||||||||||||||||||||||||
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Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Cash overdraft | — | — | — | — | 26 | — | 933,942 | — | 7 | ||||||||||||||||||||||||||||||||||||
Payable for securities purchased | 745,845 | — | — | — | — | 197,186 | 111,588 | 5,000,105 | 452,283 | ||||||||||||||||||||||||||||||||||||
Payable for fund shares redeemed | 1,215,310 | 467,175 | 741,480 | 125,903 | 253,916 | 47,810 | 7,933 | 258,841 | 15,179 | ||||||||||||||||||||||||||||||||||||
Payable for investment management services | 331,628 | 204,456 | 126,514 | 95,860 | 104,253 | 103,119 | 19,096 | 250,533 | 97,758 | ||||||||||||||||||||||||||||||||||||
Payble for variation margin on futures contracts | 32,009 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accrued custody expense | 17,159 | 6,803 | 2,204 | 2,128 | 6,350 | 3,978 | 3,886 | 4,048 | 14,012 | ||||||||||||||||||||||||||||||||||||
Accrued professional fees | 15,548 | 15,553 | 15,556 | 15,555 | 15,553 | 15,554 | 15,555 | 15,556 | 15,553 | ||||||||||||||||||||||||||||||||||||
Accrued accounting fees | 27,024 | 8,891 | 15,440 | 5,846 | 8,939 | 4,581 | 1,968 | 12,510 | 6,975 | ||||||||||||||||||||||||||||||||||||
Accrued printing and filing fees | 11,880 | 3,821 | 2,676 | 1,723 | 3,858 | 2,043 | 771 | 5,008 | 3,972 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 3,472 | 3,639 | 3,654 | 3,644 | 3,637 | 3,691 | 3,717 | 3,611 | 3,737 | ||||||||||||||||||||||||||||||||||||
Withholding tax payable | — | 37,272 | — | — | 587 | — | — | 2,519 | — | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
| ||||||||||||||||||||||||||||
Total liabilities | 2,399,875 | 747,610 | 907,524 | 250,659 | 397,119 | 377,962 | 1,098,456 | 5,552,731 | 609,476 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Commitments and contingent liabilities (see Note 8 of Notes to Financial Statements) | |||||||||||||||||||||||||||||||||||||||||||||
Net assets | $ | 1,111,538,535 | $ | 321,839,033 | $ | 202,082,290 | $ | 126,188,711 | $ | 327,582,182 | $ | 155,344,616 | $ | 25,461,965 | $ | 466,684,891 | $ | 306,637,857 | |||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Net assets consist of: | |||||||||||||||||||||||||||||||||||||||||||||
Paid in capital | 1,010,978,189 | 357,186,750 | 225,017,316 | 137,152,964 | 284,414,466 | 181,065,611 | 30,280,653 | 484,363,865 | 357,839,392 | ||||||||||||||||||||||||||||||||||||
Total distributable earnings | 100,560,346 | (35,347,717 | ) | (22,935,026 | ) | (10,964,253 | ) | 43,167,716 | (25,720,995 | ) | (4,818,688 | ) | (17,678,974 | ) | (51,201,535 | ) | |||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Net assets | $ | 1,111,538,535 | $ | 321,839,033 | $ | 202,082,290 | $ | 126,188,711 | $ | 327,582,182 | $ | 155,344,616 | $ | 25,461,965 | $ | 466,684,891 | $ | 306,637,857 | |||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
*Investments in securities of unaffiliated issuers, at cost | $ | 1,002,098,495 | $ | 355,353,474 | $ | 217,460,248 | $ | 132,850,035 | $ | 282,786,354 | $ | 176,403,941 | $ | 26,849,022 | $ | 484,003,598 | $ | 356,138,263 | |||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
**Foreign currencies, at cost | $ | — | $ | 112,180 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Shares outstanding, par value, $1 per share | 39,544,413 | 19,663,758 | 10,788,400 | 2,419,531 | 19,733,769 | 6,265,710 | 1,078,103 | 23,686,863 | 19,838,948 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Authorized Fund shares allocated to Portfolio | 90,000,000 | 75,000,000 | 45,000,000 | 15,000,000 | 50,000,000 | 23,000,000 | 15,000,000 | 90,000,000 | 30,000,000 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Net asset value per share | $ | 28.11 | $ | 16.37 | $ | 18.73 | $ | 52.15 | $ | 16.60 | $ | 24.79 | $ | 23.62 | $ | 19.70 | $ | 15.46 | |||||||||||||||||||||||||||
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|
The accompanying notes are an integral part of these financial statements.
128
Ohio National Fund, Inc.
| ||
Statements of Assets and Liabilities | December 31, 2018 |
ON Moderately | |||||||||||||||||||||||||||||||||||
ON Bristol | ON Risk Managed | ON Conservative | Conservative | ON Balanced | ON Moderate | ON | |||||||||||||||||||||||||||||
Growth | Balanced | Model | Model | Model | Growth Model | Growth Model | |||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers, at value* | $ | 86,638,949 | $ | 347,387,661 | $ | 52,603,709 | $ | 120,549,569 | $ | 467,139,407 | $ | 516,913,530 | $ | 74,852,802 | |||||||||||||||||||||
Investments in affiliates, at value** | — | — | 26,426,249 | 116,743,027 | 680,158,499 | 1,428,848,372 | 349,499,326 | ||||||||||||||||||||||||||||
Cash subject to usage restrictions | — | 1,181,160 | — | — | — | — | — | ||||||||||||||||||||||||||||
Receivable for securities sold | 757,602 | 1,409,585 | 20,501 | 642,806 | 458,340 | 2,049,106 | 220,213 | ||||||||||||||||||||||||||||
Receivable for fund shares sold | 328,083 | 12,550 | 105 | 15,085 | 362,641 | 153,789 | 22,277 | ||||||||||||||||||||||||||||
Receivable for variation margin on futures contracts | — | 933,561 | — | — | — | — | — | ||||||||||||||||||||||||||||
Dividends and accrued interest receivable | 98,838 | 1,115,406 | — | — | — | — | — | ||||||||||||||||||||||||||||
Prepaid expenses and other assets | 1,547 | 4,849 | 996 | 3,153 | 15,282 | 26,532 | 5,796 | ||||||||||||||||||||||||||||
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|
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|
|
| ||||||||||||||||||||||
Total assets | 87,825,019 | 352,044,772 | 79,051,560 | 237,953,640 | 1,148,134,169 | 1,947,991,329 | 424,600,414 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Cash overdraft | 50,197 | 83,908 | 1,545 | 1,636 | 2,158 | 2,610 | 1,739 | ||||||||||||||||||||||||||||
Payable for securities purchased | 190,313 | 3,411,586 | — | — | — | 1 | — | ||||||||||||||||||||||||||||
Payable for fund shares redeemed | 20,670 | 1,150,198 | 19,061 | 656,255 | 818,824 | 2,200,284 | 240,751 | ||||||||||||||||||||||||||||
Payable for investment management services | 62,497 | 269,821 | 6,572 | 51,167 | 384,924 | 753,330 | 177,750 | ||||||||||||||||||||||||||||
Accrued custody expense | 2,871 | 15,535 | 437 | 421 | 530 | 596 | 433 | ||||||||||||||||||||||||||||
Accrued professional fees | 15,555 | 15,557 | 11,856 | 11,856 | 11,858 | 11,856 | 11,855 | ||||||||||||||||||||||||||||
Accrued accounting fees | 3,098 | 22,559 | 4,107 | 4,212 | 4,277 | 4,297 | 4,280 | ||||||||||||||||||||||||||||
Accrued printing and filing fees | 1,403 | 4,262 | 1,381 | 3,058 | 12,603 | 20,726 | 4,885 | ||||||||||||||||||||||||||||
Other liabilities | 3,707 | 3,650 | 6,535 | 7,085 | 8,115 | 8,784 | 6,994 | ||||||||||||||||||||||||||||
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|
|
|
|
|
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|
|
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|
|
| ||||||||||||||||||||||
Total liabilities | 350,311 | 4,977,076 | 51,494 | 735,690 | 1,243,289 | 3,002,484 | 448,687 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Net assets | $ | 87,474,708 | $ | 347,067,696 | $ | 79,000,066 | $ | 237,217,950 | $ | 1,146,890,880 | $ | 1,944,988,845 | $ | 424,151,727 | |||||||||||||||||||||
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| ||||||||||||||||||||||
Net assets consist of: | |||||||||||||||||||||||||||||||||||
Paid in capital | 99,008,608 | 325,828,464 | 84,649,179 | 263,091,929 | 1,311,486,896 | 2,307,434,791 | 514,478,645 | ||||||||||||||||||||||||||||
Total distributable earnings | (11,533,900 | ) | 21,239,232 | (5,649,113 | ) | (25,873,979 | ) | (164,596,016 | ) | (362,445,946 | ) | (90,326,918 | ) | ||||||||||||||||||||||
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| ||||||||||||||||||||||
Net assets | $ | 87,474,708 | $ | 347,067,696 | $ | 79,000,066 | $ | 237,217,950 | $ | 1,146,890,880 | $ | 1,944,988,845 | $ | 424,151,727 | |||||||||||||||||||||
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| ||||||||||||||||||||||
*Investments in securities of unaffiliated issuers, at cost | $ | 97,112,197 | $ | 324,655,316 | $ | 54,103,542 | $ | 125,037,930 | $ | 494,495,166 | $ | 576,376,680 | $ | 89,222,043 | |||||||||||||||||||||
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| ||||||||||||||||||||||
**Investments in affiliates, at cost | $ | — | $ | — | $ | 27,728,259 | $ | 125,273,445 | $ | 730,984,545 | $ | 1,534,225,022 | $ | 375,654,330 | |||||||||||||||||||||
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| ||||||||||||||||||||||
Shares outstanding, par value, $1 per share | 4,248,013 | 26,883,120 | 7,735,465 | 23,498,722 | 115,007,174 | 195,951,383 | 42,996,287 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Authorized Fund shares allocated to Portfolio | 30,000,000 | 85,000,000 | 30,000,000 | 70,000,000 | 200,000,000 | 300,000,000 | 100,000,000 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Net asset value per share | $ | 20.59 | $ | 12.91 | $ | 10.21 | $ | 10.09 | $ | 9.97 | $ | 9.93 | $ | 9.86 | |||||||||||||||||||||
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|
|
The accompanying notes are an integral part of these financial statements.
129
Ohio National Fund, Inc.
| ||
For the Year Ended December 31, 2018 |
ON | ON Janus | ||||||||||||||||||||||||||||||||||||||||||||
ON Capital | International | ON Janus | ON Janus | Henderson | |||||||||||||||||||||||||||||||||||||||||
ON Equity | ON Bond | ON Omni | Appreciation | Equity | ON Foreign | Henderson | Henderson | Enterprise | |||||||||||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Forty Portfolio | Venture Portfolio | Portfolio | |||||||||||||||||||||||||||||||||||||
Investment income: | |||||||||||||||||||||||||||||||||||||||||||||
Interest | $ | — | $ | 11,291,956 | $ | 507,999 | $ | — | $ | — | $ | — | $ | 5,555 | $ | 8,213 | $ | — | |||||||||||||||||||||||||||
Dividends from unaffiliated issuers, net of taxes withheld* | 6,994,207 | 105,895 | 778,878 | 2,027,435 | 13,302,346 | 2,016,305 | 905,234 | 1,632,874 | 1,029,664 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Total investment income | 6,994,207 | 11,397,851 | 1,286,877 | 2,027,435 | 13,302,346 | 2,016,305 | 910,789 | 1,641,087 | 1,029,664 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||||||||
Management fees | 3,124,700 | 1,555,545 | 400,044 | 919,299 | 3,581,693 | 592,275 | 981,189 | 2,054,606 | 853,886 | ||||||||||||||||||||||||||||||||||||
Custodian fees | 16,648 | 12,430 | 15,205 | 11,747 | 311,656 | 123,515 | 12,519 | 45,326 | 18,439 | ||||||||||||||||||||||||||||||||||||
Directors’ fees | 31,392 | 22,114 | 5,006 | 8,688 | 36,993 | 5,201 | 9,020 | 19,766 | 7,408 | ||||||||||||||||||||||||||||||||||||
Professional fees | 24,597 | 23,236 | 20,103 | 20,742 | 25,341 | 20,142 | 20,807 | 22,708 | 20,533 | ||||||||||||||||||||||||||||||||||||
Accounting fees | 55,555 | 64,342 | 27,312 | 20,709 | 78,318 | 31,387 | 21,180 | 41,537 | 19,196 | ||||||||||||||||||||||||||||||||||||
Administration fees | 24,123 | 23,761 | 22,821 | 22,825 | 24,826 | 22,455 | 23,269 | 23,644 | 22,810 | ||||||||||||||||||||||||||||||||||||
Printing and filing fees | 11,576 | 10,860 | 5,295 | 6,347 | 16,932 | 5,659 | 7,408 | 9,708 | 11,107 | ||||||||||||||||||||||||||||||||||||
Compliance expense | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | ||||||||||||||||||||||||||||||||||||
Other | 12,513 | 4,895 | 1,628 | 3,272 | 8,389 | 1,808 | 2,145 | 6,487 | 2,121 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Total expenses | 3,316,184 | 1,732,263 | 512,494 | 1,028,709 | 4,099,228 | 817,522 | 1,092,617 | 2,238,862 | 970,580 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Net investment income (loss) | 3,678,023 | 9,665,588 | 774,383 | 998,726 | 9,203,118 | 1,198,783 | (181,828 | ) | (597,775 | ) | 59,084 | ||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Realized/unrealized gain (loss) on investments and foreign currency related transactions: | |||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers, net of foreign capital gain taxes** | 34,133,682 | (1,332,707 | ) | 4,734,973 | 12,867,793 | (13,497,050 | ) | 939,643 | 9,044,031 | 36,514,469 | 19,981,181 | ||||||||||||||||||||||||||||||||||
Foreign currency related transactions | (7,551 | ) | — | — | 536 | 59,421 | (19,290 | ) | 55 | (908 | ) | (8,195 | ) | ||||||||||||||||||||||||||||||||
Change in unrealized appreciation/depreciation on: | |||||||||||||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers | (79,717,749 | ) | (18,121,945 | ) | (15,186,311 | ) | (27,865,680 | ) | (81,622,559 | ) | (12,868,227 | ) | (14,617,385 | ) | (46,187,120 | ) | (26,217,307 | ) | |||||||||||||||||||||||||||
Foreign currency related transactions | 419 | — | — | (1,867 | ) | (17,515 | ) | 9,584 | 109 | (901 | ) | 6 | |||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Net realized/unrealized loss on investments and foreign currency related transactions | (45,591,199 | ) | (19,454,652 | ) | (10,451,338 | ) | (14,999,218 | ) | (95,077,703 | ) | (11,938,290 | ) | (5,573,190 | ) | (9,674,460 | ) | (6,244,315 | ) | |||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Change in net assets from operations | $ | (41,913,176 | ) | $ | (9,789,064 | ) | $ | (9,676,955 | ) | $ | (14,000,492 | ) | $ | (85,874,585 | ) | $ | (10,739,507 | ) | $ | (5,755,018 | ) | $ | (10,272,235 | ) | $ | (6,185,231 | ) | ||||||||||||||||||
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| ||||||||||||||||||||||||||||
*Taxes withheld | $ | 16,515 | $ | — | $ | — | $ | 13,691 | $ | 1,447,919 | $ | 204,645 | $ | 4,624 | $ | 9,628 | $ | 13,782 | |||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
**Foreign capital gain taxes | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 16,986 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
130
Ohio National Fund, Inc.
| ||
Statements of Operations | For the Year Ended December 31, 2018 |
ON Federated | ON Federated | ON S&P | |||||||||||||||||||||||||||||||||||||||||||
ON S&P 500® | Strategic Value | High Income | ON ClearBridge | ON Nasdaq-100® | ON Bryton | ON ICON | MidCap 400® | ||||||||||||||||||||||||||||||||||||||
Index | Dividend | Bond | Small Cap | Index | ON Bristol | Growth | Balanced | Index | |||||||||||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||||||||||
Investment income: | |||||||||||||||||||||||||||||||||||||||||||||
Interest | $ | 12,916 | $ | — | $ | 17,172,943 | $ | — | $ | 5,749 | $ | — | $ | — | $ | 8,020,773 | $ | 1,276 | |||||||||||||||||||||||||||
Dividends from unaffiliated issuers, net of taxes withheld* | 23,738,668 | 20,539,460 | 173,521 | 2,583,952 | 3,801,359 | 2,896,495 | 248,760 | 8,247,279 | 2,679,491 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Total investment income | 23,751,584 | 20,539,460 | 17,346,464 | 2,583,952 | 3,807,108 | 2,896,495 | 248,760 | 16,268,052 | 2,680,767 | ||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||||||||
Management fees | 4,089,496 | 3,142,954 | 1,918,605 | 1,995,689 | 1,253,990 | 1,496,146 | 426,875 | 4,385,049 | 555,734 | ||||||||||||||||||||||||||||||||||||
Custodian fees | 111,388 | 44,318 | 13,536 | 14,506 | 35,323 | 24,017 | 20,449 | 28,688 | 83,093 | ||||||||||||||||||||||||||||||||||||
Directors’ fees | 91,232 | 33,491 | 20,720 | 17,068 | 25,813 | 14,917 | 3,579 | 55,666 | 11,904 | ||||||||||||||||||||||||||||||||||||
Professional fees | 35,519 | 25,515 | 22,941 | 22,280 | 23,839 | 21,852 | 19,859 | 28,850 | 21,469 | ||||||||||||||||||||||||||||||||||||
Accounting fees | 163,569 | 61,481 | 94,356 | 36,734 | 49,771 | 29,695 | 11,993 | 100,342 | 29,921 | ||||||||||||||||||||||||||||||||||||
Administration fees | 27,372 | 24,104 | 23,709 | 23,279 | 24,029 | 23,123 | 22,585 | 24,569 | 23,342 | ||||||||||||||||||||||||||||||||||||
Printing and filing fees | 33,794 | 12,646 | 9,933 | 8,563 | 13,142 | 8,121 | 4,745 | 18,211 | 9,125 | ||||||||||||||||||||||||||||||||||||
Compliance expense | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | ||||||||||||||||||||||||||||||||||||
Other | 27,506 | 12,895 | 6,320 | 6,343 | 6,961 | 5,166 | 1,620 | 21,698 | 2,213 | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total expenses | 4,594,956 | 3,372,484 | 2,125,200 | 2,139,542 | 1,447,948 | 1,638,117 | 526,785 | 4,678,153 | 751,881 | ||||||||||||||||||||||||||||||||||||
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|
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|
|
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|
| ||||||||||||||||||||||||||||
Net investment income (loss) | 19,156,628 | 17,166,976 | 15,221,264 | 444,410 | 2,359,160 | 1,258,378 | (278,025 | ) | 11,589,899 | 1,928,886 | |||||||||||||||||||||||||||||||||||
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|
| ||||||||||||||||||||||||||||
Realized/unrealized gain (loss) on investments, capital gain distributions received from underlying mutual funds, futures contracts, and foreign currency related transactions: | |||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers | 124,055,728 | 15,374,447 | (539,202 | ) | 34,009,076 | 47,285,646 | 21,820,877 | 8,841,303 | 27,738,204 | 3,786,921 | |||||||||||||||||||||||||||||||||||
Capital gain distributions received from underlying unaffiliated mutual funds | — | — | — | — | — | — | — | 307,607 | — | ||||||||||||||||||||||||||||||||||||
Futures contracts | (575,561 | ) | — | — | — | 20,238 | — | — | — | (124,393 | ) | ||||||||||||||||||||||||||||||||||
Foreign currency related transactions | — | (124,372 | ) | — | — | — | — | — | 779 | — | |||||||||||||||||||||||||||||||||||
Change in unrealized appreciation/depreciation on: | |||||||||||||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers | (196,667,660 | ) | (75,239,678 | ) | (21,613,364 | ) | (40,203,319 | ) | (58,771,870 | ) | (55,659,595 | ) | (7,430,497 | ) | (85,113,653 | ) | (55,540,308 | ) | |||||||||||||||||||||||||||
Futures contracts | 56,528 | — | — | — | 692 | — | — | — | (9,669 | ) | |||||||||||||||||||||||||||||||||||
Foreign currency related transactions | — | (39,606 | ) | — | — | — | — | — | (48 | ) | — | ||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Net realized/unrealized gain (loss) on investments, capital gain distributions received from underlying mutual funds, futures contracts, and foreign currency related transactions | (73,130,965 | ) | (60,029,209 | ) | (22,152,566 | ) | (6,194,243 | ) | (11,465,294 | ) | (33,838,718 | ) | 1,410,806 | (57,067,111 | ) | (51,887,449 | ) | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
Change in net assets from operations | $ | (53,974,337 | ) | $ | (42,862,233 | ) | $ | (6,931,302 | ) | $ | (5,749,833 | ) | $ | (9,106,134 | ) | $ | (32,580,340 | ) | $ | 1,132,781 | $ | (45,477,212 | ) | $ | (49,958,563 | ) | |||||||||||||||||||
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| ||||||||||||||||||||||||||||
*Taxes withheld | $ | — | $ | 322,348 | $ | — | $ | — | $ | 1,352 | $ | — | $ | — | $ | 49,723 | $ | 3,199 | |||||||||||||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
131
Ohio National Fund, Inc.
| ||
Statements of Operations | For the Year Ended December 31, 2018 |
ON Moderately | |||||||||||||||||||||||||||||||||||
ON Bristol | ON Risk Managed | ON Conservative | Conservative | ON Balanced | ON Moderate | ON | |||||||||||||||||||||||||||||
Growth | Balanced | Model | Model | Model | Growth Model | Growth Model | |||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Investment income: | |||||||||||||||||||||||||||||||||||
Interest | $ | — | $ | 3,603,404 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Dividends from unaffiliated issuers, net of taxes withheld* | 1,535,952 | 4,413,489 | 1,724,728 | 4,211,548 | 13,915,441 | 16,664,367 | 2,062,252 | ||||||||||||||||||||||||||||
Dividends from affililiates | — | — | 24,203 | 171,386 | 899,225 | 1,654,606 | 361,217 | ||||||||||||||||||||||||||||
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|
| ||||||||||||||||||||||
Total investment income | 1,535,952 | 8,016,893 | 1,748,931 | 4,382,934 | 14,814,666 | 18,318,973 | 2,423,469 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Management fees | 921,055 | 3,189,317 | 355,493 | 1,138,463 | 5,502,970 | 9,503,821 | 2,044,619 | ||||||||||||||||||||||||||||
Custodian fees | 16,909 | 84,111 | 2,568 | 2,625 | 3,126 | 3,681 | 2,712 | ||||||||||||||||||||||||||||
Directors’ fees | 8,765 | 26,565 | 6,667 | 21,344 | 103,041 | 177,924 | 38,215 | ||||||||||||||||||||||||||||
Professional fees | 20,762 | 23,975 | 13,518 | 16,126 | 30,645 | 43,882 | 19,122 | ||||||||||||||||||||||||||||
Accounting fees | 19,659 | 133,567 | 24,681 | 25,193 | 25,619 | 25,699 | 25,633 | ||||||||||||||||||||||||||||
Administration fees | 22,641 | 23,937 | 38,806 | 42,016 | 44,061 | 45,998 | 42,939 | ||||||||||||||||||||||||||||
Printing and filing fees | 6,337 | 12,757 | 6,202 | 10,362 | 34,992 | 57,488 | 15,688 | ||||||||||||||||||||||||||||
Compliance expense | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | 15,080 | ||||||||||||||||||||||||||||
Other | 2,994 | 8,365 | 2,164 | 6,946 | 34,211 | 57,944 | 12,043 | ||||||||||||||||||||||||||||
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|
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|
| ||||||||||||||||||||||
Total expenses | 1,034,202 | 3,517,674 | 465,179 | 1,278,155 | 5,793,745 | 9,931,517 | 2,216,051 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Less expenses reduced or reimbursed by advisor | — | — | (226,418 | ) | (470,818 | ) | (1,505,609 | ) | (1,692,796 | ) | (638,268 | ) | |||||||||||||||||||||||
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|
|
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|
|
| ||||||||||||||||||||||
Net expenses | 1,034,202 | 3,517,674 | 238,761 | 807,337 | 4,288,136 | 8,238,721 | 1,577,783 | ||||||||||||||||||||||||||||
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|
| ||||||||||||||||||||||
Net investment income | 501,750 | 4,499,219 | 1,510,170 | 3,575,597 | 10,526,530 | 10,080,252 | 845,686 | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Realized/unrealized gain on investments, capital gain distributions received from underlying mutual funds, futures contracts, and foreign currency related transactions: | |||||||||||||||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers | 15,780,396 | 13,795,764 | (239,348 | ) | (880,520 | ) | (934,721 | ) | (6,035,001 | ) | (1,028,312 | ) | |||||||||||||||||||||||
Investments in affiliates | — | — | 1,964,534 | 9,675,930 | 63,359,359 | 121,747,735 | 29,632,387 | ||||||||||||||||||||||||||||
Capital gain distributions received from underlying unaffiliated mutual funds | — | — | 92,092 | 309,702 | 1,673,513 | 4,030,821 | 801,429 | ||||||||||||||||||||||||||||
Capital gain distributions received from underlying affiliated mutual funds | — | — | — | 507,720 | 3,544,826 | 7,913,467 | 1,719,049 | ||||||||||||||||||||||||||||
Futures contracts | — | (6,518,525 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency related transactions | — | (932 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Change in unrealized appreciation/depreciation on: | |||||||||||||||||||||||||||||||||||
Investments in securities of unaffiliated issuers | (31,162,980 | ) | (18,476,194 | ) | (2,414,595 | ) | (6,891,133 | ) | (40,340,606 | ) | (77,175,557 | ) | (17,318,591 | ) | |||||||||||||||||||||
Investments in affiliates | — | — | (3,625,109 | ) | (21,379,098 | ) | (139,914,592 | ) | (289,327,267 | ) | (71,570,385 | ) | |||||||||||||||||||||||
Futures contracts | — | 3,601,820 | — | — | — | — | — | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||
Net realized/unrealized loss on investments, capital gain distributions received from underlying mutual funds, futures contracts, and foreign currency related transactions | (15,382,584 | ) | (7,598,067 | ) | (4,222,426 | ) | (18,657,399 | ) | (112,612,221 | ) | (238,845,802 | ) | (57,764,423 | ) | |||||||||||||||||||||
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| ||||||||||||||||||||||
Change in net assets from operations | $ | (14,880,834 | ) | $ | (3,098,848 | ) | $ | (2,712,256 | ) | $ | (15,081,802 | ) | $ | (102,085,691 | ) | $ | (228,765,550 | ) | $ | (56,918,737 | ) | ||||||||||||||
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| ||||||||||||||||||||||
*Taxes withheld | $ | — | $ | 14,685 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
132
Ohio National Fund, Inc.
| ||
ON Equity | ON Bond | ON Omni | ON Capital Appreciation | |||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | �� | 2018 | 2017 | ||||||||||||||||||||||||
Increase (Decrease) in net assets: | ||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 3,678,023 | $ | 4,056,364 | $ | 9,665,588 | $ | 5,490,404 | $ | 774,383 | $ | 642,510 | $ | 998,726 | $ | 1,723,715 | ||||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 34,126,131 | 48,627,176 | (1,332,707 | ) | 945,221 | 4,734,973 | 8,186,809 | 12,868,329 | 22,158,899 | |||||||||||||||||||||||
Change in unrealized appreciation/depreciation on investments and foreign currency related transactions | (79,717,330 | ) | 25,708,456 | (18,121,945 | ) | 3,790,719 | (15,186,311 | ) | 3,210,023 | (27,867,547 | ) | (845,434 | ) | |||||||||||||||||||
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| |||||||||||||||||
Change in net assets from operations | (41,913,176 | ) | 78,391,996 | (9,789,064 | ) | 10,226,344 | (9,676,955 | ) | 12,039,342 | (14,000,492 | ) | 23,037,180 | ||||||||||||||||||||
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| |||||||||||||||||
Capital transactions: | ||||||||||||||||||||||||||||||||
Received from shares sold | 21,760,700 | 405,044,830 | 38,682,232 | 195,349,582 | 10,920,667 | 7,854,928 | 10,441,625 | 80,306,162 | ||||||||||||||||||||||||
Paid for shares redeemed | (296,773,433 | ) | (490,371,035 | ) | (88,523,835 | ) | (46,957,435 | ) | (16,074,459 | ) | (9,385,488 | ) | (28,800,944 | ) | (173,461,176 | ) | ||||||||||||||||
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| |||||||||||||||||
Change in net assets from capital transactions | (275,012,733 | ) | (85,326,205 | ) | (49,841,603 | ) | 148,392,147 | (5,153,792 | ) | (1,530,560 | ) | (18,359,319 | ) | (93,155,014 | ) | |||||||||||||||||
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| |||||||||||||||||
Change in net assets | (316,925,909 | ) | (6,934,209 | ) | (59,630,667 | ) | 158,618,491 | (14,830,747 | ) | 10,508,782 | (32,359,811 | ) | (70,117,834 | ) | ||||||||||||||||||
Net assets: | ||||||||||||||||||||||||||||||||
Beginning of year | 574,879,897 | 581,814,106 | 317,321,351 | 158,702,860 | 68,394,295 | 57,885,513 | 125,590,165 | 195,707,999 | ||||||||||||||||||||||||
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| |||||||||||||||||
End of year | $ | 257,953,988 | $ | 574,879,897 | $ | 257,690,684 | $ | 317,321,351 | $ | 53,563,548 | $ | 68,394,295 | $ | 93,230,354 | $ | 125,590,165 | ||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
133
Ohio National Fund, Inc.
| ||
Statements of Changes in Net Assets |
ON International Equity | ON Foreign | ON Janus Henderson | ON Janus Henderson Venture | |||||||||||||||||||||||||||||
Portfolio | Portfolio | Forty Portfolio | Portfolio | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Increase (Decrease) in net assets: | ||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 9,203,118 | $ | 1,930,831 | $ | 1,198,783 | $ | 766,568 | $ | (181,828 | ) | $ | (87,431 | ) | $ | (597,775 | ) | $ | (496,991 | ) | ||||||||||||
Net realized gain (loss) on investments, futures contracts, foreign currency contracts, and other foreign currency related transactions | (13,437,629 | ) | 20,007,115 | 920,353 | 12,225,092 | 9,044,086 | 7,596,740 | 36,513,561 | 15,587,664 | |||||||||||||||||||||||
Change in unrealized appreciation/depreciation on investments, futures contracts, and foreign currency related transactions | (81,640,074 | ) | 14,707,509 | (12,858,643 | ) | 318,637 | (14,617,276 | ) | 6,024,692 | (46,188,021 | ) | 40,132,780 | ||||||||||||||||||||
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| |||||||||||||||||
Change in net assets from operations | (85,874,585 | ) | 36,645,455 | (10,739,507 | ) | 13,310,297 | (5,755,018 | ) | 13,534,001 | (10,272,235 | ) | 55,223,453 | ||||||||||||||||||||
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| |||||||||||||||||
Capital transactions: | ||||||||||||||||||||||||||||||||
Received from shares sold | 522,211,794 | 14,910,907 | 7,071,488 | 19,610,626 | 131,184,789 | 12,889,196 | 28,648,853 | 177,635,315 | ||||||||||||||||||||||||
Paid for shares redeemed | (75,666,960 | ) | (34,994,526 | ) | (20,936,084 | ) | (19,903,183 | ) | (36,734,844 | ) | (15,646,575 | ) | (87,143,672 | ) | (188,951,193 | ) | ||||||||||||||||
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| |||||||||||||||||
Change in net assets from capital transactions | 446,544,834 | (20,083,619 | ) | (13,864,596 | ) | (292,557 | ) | 94,449,945 | (2,757,379 | ) | (58,494,819 | ) | (11,315,878 | ) | ||||||||||||||||||
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| |||||||||||||||||
Change in net assets | 360,670,249 | 16,561,836 | (24,604,103 | ) | 13,017,740 | 88,694,927 | 10,776,622 | (68,767,054 | ) | 43,907,575 | ||||||||||||||||||||||
Net assets: | ||||||||||||||||||||||||||||||||
Beginning of year | 158,086,745 | 141,524,909 | 79,690,730 | 66,672,990 | 60,642,356 | 49,865,734 | 276,214,481 | 232,306,906 | ||||||||||||||||||||||||
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End of year | $ | 518,756,994 | $ | 158,086,745 | $ | 55,086,627 | $ | 79,690,730 | $ | 149,337,283 | $ | 60,642,356 | $ | 207,447,427 | $ | 276,214,481 | ||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
134
Ohio National Fund, Inc.
| ||
Statements of Changes in Net Assets |
ON Federated | ON Federated | |||||||||||||||||||||||||||||||
ON Janus Henderson Enterprise | ON S&P 500® Index | Strategic Value | High Income Bond | |||||||||||||||||||||||||||||
Portfolio | Portfolio | Dividend Portfolio | Portfolio | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Increase (Decrease) in net assets: | ||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 59,084 | $ | (178,848 | ) | $ | 19,156,628 | $ | 15,437,238 | $ | 17,166,976 | $ | 20,840,410 | $ | 15,221,264 | $ | 16,582,542 | |||||||||||||||
Net realized gain (loss) on investments, futures contracts, and foreign currency related transactions | 19,972,986 | 8,412,020 | 123,480,167 | 36,445,415 | 15,250,075 | 31,449,661 | (539,202 | ) | 2,116,365 | |||||||||||||||||||||||
Change in unrealized appreciation/depreciation on investments, futures contracts, and foreign currency related transactions | (26,217,301 | ) | 9,661,514 | (196,611,132 | ) | 129,535,843 | (75,279,284 | ) | 21,723,360 | (21,613,364 | ) | 2,626,767 | ||||||||||||||||||||
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| |||||||||||||||||
Change in net assets from operations | (6,185,231 | ) | 17,894,686 | (53,974,337 | ) | 181,418,496 | (42,862,233 | ) | 74,013,431 | (6,931,302 | ) | 21,325,674 | ||||||||||||||||||||
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Capital transactions: | ||||||||||||||||||||||||||||||||
Received from shares sold | 57,214,680 | 5,911,403 | 347,702,650 | 626,563,875 | 32,510,016 | 506,307,850 | 22,584,954 | 231,572,692 | ||||||||||||||||||||||||
Paid for shares redeemed | (26,241,838 | ) | (16,200,896 | ) | (326,345,158 | ) | (506,466,387 | ) | (264,473,671 | ) | (459,177,636 | ) | (132,623,908 | ) | (247,603,288 | ) | ||||||||||||||||
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Change in net assets from capital transactions | 30,972,842 | (10,289,493 | ) | 21,357,492 | 120,097,488 | (231,963,655 | ) | 47,130,214 | (110,038,954 | ) | (16,030,596 | ) | ||||||||||||||||||||
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Change in net assets | 24,787,611 | 7,605,193 | (32,616,845 | ) | 301,515,984 | (274,825,888 | ) | 121,143,645 | (116,970,256 | ) | 5,295,078 | |||||||||||||||||||||
Net assets: | ||||||||||||||||||||||||||||||||
Beginning of year | 77,803,451 | 70,198,258 | 1,144,155,380 | 842,639,396 | 596,664,921 | 475,521,276 | 319,052,546 | 313,757,468 | ||||||||||||||||||||||||
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End of year | $ | 102,591,062 | $ | 77,803,451 | $ | 1,111,538,535 | $ | 1,144,155,380 | $ | 321,839,033 | $ | 596,664,921 | $ | 202,082,290 | $ | 319,052,546 | ||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
135
Ohio National Fund, Inc.
| ||
Statements of Changes in Net Assets |
ON ClearBridge Small Cap | ON Nasdaq-100® Index | ON Bristol | ON Bryton Growth | |||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Increase (Decrease) in net assets: | ||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 444,410 | $ | 823,123 | $ | 2,359,160 | $ | 1,394,047 | $ | 1,258,378 | $ | 1,003,578 | $ | (278,025 | ) | $ | (481,788 | ) | ||||||||||||||
Net realized gain on investments and futures contracts | 34,009,076 | 26,041,485 | 47,305,884 | 8,094,996 | 21,820,877 | 41,888,166 | 8,841,303 | 14,849,635 | ||||||||||||||||||||||||
Change in unrealized appreciation/depreciation on investments and futures contracts | (40,203,319 | ) | 5,031,578 | (58,771,178 | ) | 43,376,301 | (55,659,595 | ) | 6,677,159 | (7,430,497 | ) | 1,760,048 | ||||||||||||||||||||
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Change in net assets from operations | (5,749,833 | ) | 31,896,186 | (9,106,134 | ) | 52,865,344 | (32,580,340 | ) | 49,568,903 | 1,132,781 | 16,127,895 | |||||||||||||||||||||
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Capital transactions: | ||||||||||||||||||||||||||||||||
Received from shares sold | 13,705,484 | 210,858,672 | 203,694,976 | 104,350,460 | 24,292,885 | 177,409,632 | 6,244,393 | 75,485,463 | ||||||||||||||||||||||||
Paid for shares redeemed | (156,864,507 | ) | (243,371,357 | ) | (124,224,169 | ) | (56,054,728 | ) | (60,069,872 | ) | (211,200,737 | ) | (38,689,793 | ) | (129,426,147 | ) | ||||||||||||||||
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Change in net assets from capital transactions | (143,159,023 | ) | (32,512,685 | ) | 79,470,807 | 48,295,732 | (35,776,987 | ) | (33,791,105 | ) | (32,445,400 | ) | (53,940,684 | ) | ||||||||||||||||||
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Change in net assets | (148,908,856 | ) | (616,499 | ) | 70,364,673 | 101,161,076 | (68,357,327 | ) | 15,777,798 | (31,312,619 | ) | (37,812,789 | ) | |||||||||||||||||||
Net assets: | ||||||||||||||||||||||||||||||||
Beginning of year | 275,097,567 | 275,714,066 | 257,217,509 | 156,056,433 | 223,701,943 | 207,924,145 | 56,774,584 | 94,587,373 | ||||||||||||||||||||||||
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End of year | $ | 126,188,711 | $ | 275,097,567 | $ | 327,582,182 | $ | 257,217,509 | $ | 155,344,616 | $ | 223,701,943 | $ | 25,461,965 | $ | 56,774,584 | ||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
136
Ohio National Fund, Inc.
| ||
Statements of Changes in Net Assets |
ON S&P | ||||||||||||||||||||||||||||||||
ON ICON | MidCap 400® Index | ON Bristol | ON Risk Managed Balanced | |||||||||||||||||||||||||||||
Balanced Portfolio | Portfolio | Growth Portfolio | Portfolio | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Increase (Decrease) in net assets: | ||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 11,589,899 | $ | 18,946,310 | $ | 1,928,886 | $ | 528,803 | $ | 501,750 | $ | 295,214 | $ | 4,499,219 | $ | 3,850,193 | ||||||||||||||||
Net realized gain on investments, futures contracts, foreign currency related transactions, and capital gain distributions received from underlying mutual funds | 28,046,590 | 33,131,955 | 3,662,528 | 1,249,952 | 15,780,396 | 24,580,265 | 7,276,307 | 14,012,026 | ||||||||||||||||||||||||
Change in unrealized appreciation/depreciation on investments, futures contracts, and foreign currency related transactions | (85,113,701 | ) | 49,373,289 | (55,549,977 | ) | 6,263,050 | (31,162,980 | ) | 7,591,502 | (14,874,374 | ) | 33,191,554 | ||||||||||||||||||||
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Change in net assets from operations | (45,477,212 | ) | 101,451,554 | (49,958,563 | ) | 8,041,805 | (14,880,834 | ) | 32,466,981 | (3,098,848 | ) | 51,053,773 | ||||||||||||||||||||
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Capital transactions: | ||||||||||||||||||||||||||||||||
Received from shares sold | 51,811,471 | 502,351,143 | 294,163,638 | 58,563,238 | 16,790,977 | 118,823,309 | 67,212,455 | 83,103,619 | ||||||||||||||||||||||||
Paid for shares redeemed | (494,749,369 | ) | (600,794,651 | ) | (26,349,955 | ) | (25,711,544 | ) | (42,484,491 | ) | (140,799,340 | ) | (61,216,514 | ) | (62,068,377 | ) | ||||||||||||||||
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Change in net assets from capital transactions | (442,937,898 | ) | (98,443,508 | ) | 267,813,683 | 32,851,694 | (25,693,514 | ) | (21,976,031 | ) | 5,995,941 | 21,035,242 | ||||||||||||||||||||
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Change in net assets | (488,415,110 | ) | 3,008,046 | 217,855,120 | 40,893,499 | (40,574,348 | ) | 10,490,950 | 2,897,093 | 72,089,015 | ||||||||||||||||||||||
Net assets: | ||||||||||||||||||||||||||||||||
Beginning of year | 955,100,001 | 952,091,955 | 88,782,737 | 47,889,238 | 128,049,056 | 117,558,106 | 344,170,603 | 272,081,588 | ||||||||||||||||||||||||
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End of year | $ | 466,684,891 | $ | 955,100,001 | $ | 306,637,857 | $ | 88,782,737 | $ | 87,474,708 | $ | 128,049,056 | $ | 347,067,696 | $ | 344,170,603 | ||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
137
Ohio National Fund, Inc.
| ||
Statements of Changes in Net Assets |
ON Moderately | ||||||||||||||||||||||||||||||||||||||||
ON Conservative | Conservative | ON Balanced | ON Moderate | ON | ||||||||||||||||||||||||||||||||||||
Model | Model | Model | Growth Model | Growth Model | ||||||||||||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||||||||||||||||||||||||||
Period from | Period from | Period from | Period from | Period from | ||||||||||||||||||||||||||||||||||||
March 1, 2017 | March 1, 2017 | March 1, 2017 | March 1, 2017 | March 1, 2017 | ||||||||||||||||||||||||||||||||||||
Year Ended | (inception) to | Year Ended | (inception) to | Year Ended | (inception) to | Year Ended | (inception) to | Year Ended | (inception) to | |||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
Increase (Decrease) in net assets: | ||||||||||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 1,510,170 | $ | 1,472,402 | $ | 3,575,597 | $ | 3,844,130 | $ | 10,526,530 | $ | 12,745,203 | $ | 10,080,252 | $ | 16,421,240 | $ | 845,686 | $ | 2,205,209 | ||||||||||||||||||||
Net realized gain on investments and capital gain distributions received from underlying mutual funds | 1,817,278 | 706,260 | 9,612,832 | 3,064,137 | 67,642,977 | 18,419,784 | 127,657,022 | 31,065,150 | 31,124,553 | 6,550,318 | ||||||||||||||||||||||||||||||
Change in unrealized appreciation/depreciation on investments | (6,039,704 | ) | 3,237,861 | (28,270,231 | ) | 15,251,452 | (180,255,198 | ) | 102,073,393 | (366,502,824 | ) | 201,663,024 | (88,888,976 | ) | 48,364,731 | |||||||||||||||||||||||||
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Change in net assets from operations | (2,712,256 | ) | 5,416,523 | (15,081,802 | ) | 22,159,719 | (102,085,691 | ) | 133,238,380 | (228,765,550 | ) | 249,149,414 | (56,918,737 | ) | 57,120,258 | |||||||||||||||||||||||||
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Capital transactions: | ||||||||||||||||||||||||||||||||||||||||
Received from shares sold | 16,321,184 | 116,235,409 | 17,226,213 | 354,878,115 | 32,601,532 | 1,605,179,885 | 62,284,294 | 2,645,437,657 | 37,982,945 | 539,074,347 | ||||||||||||||||||||||||||||||
Paid for shares redeemed | (34,326,169 | ) | (21,934,625 | ) | (90,882,373 | ) | (51,081,922 | ) | (346,200,979 | ) | (175,842,247 | ) | (535,321,797 | ) | (247,795,173 | ) | (100,690,231 | ) | (52,416,855 | ) | ||||||||||||||||||||
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Change in net assets from capital transactions | (18,004,985 | ) | 94,300,784 | (73,656,160 | ) | 303,796,193 | (313,599,447 | ) | 1,429,337,638 | (473,037,503 | ) | 2,397,642,484 | (62,707,286 | ) | 486,657,492 | |||||||||||||||||||||||||
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Change in net assets | (20,717,241 | ) | 99,717,307 | (88,737,962 | ) | 325,955,912 | (415,685,138 | ) | 1,562,576,018 | (701,803,053 | ) | 2,646,791,898 | (119,626,023 | ) | 543,777,750 | |||||||||||||||||||||||||
Net assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of year | 99,717,307 | — | 325,955,912 | — | 1,562,576,018 | — | 2,646,791,898 | — | 543,777,750 | — | ||||||||||||||||||||||||||||||
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End of year | $ | 79,000,066 | $ | 99,717,307 | $ | 237,217,950 | $ | 325,955,912 | $ | 1,146,890,880 | $ | 1,562,576,018 | $ | 1,944,988,845 | $ | 2,646,791,898 | $ | 424,151,727 | $ | 543,777,750 | ||||||||||||||||||||
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The accompanying notes are an integral part of these financial statements.
138
Ohio National Fund, Inc.
|
Selected per-share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations | Distributions | Ratios to average net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios net of | Ratios assuming | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
expenses | no expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
reduced or | reduced or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
reimbursed by | reimbursed by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
adviser | adviser | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
unrealized gain (loss) on | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investments and foreign | from net | Net assets at end | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, | Net investment | currency related | Total from | investment | Net asset value, | of year | Net investment | Portfolio turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of year | income | transactions | operations | income | end of year | Total Return# | (in millions) | Expenses | income | Expenses | rate | |||||||||||||||||||||||||||||||||||||||||||||||||
ON Equity Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 41.38 | 0.51 | (6.23 | ) | (5.72 | ) | — | $ | 35.66 | -13.82 | % | $ | 258.0 | 0.81 | % | 0.90 | % | 0.81 | % | 28 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 36.09 | 0.35 | 4.94 | 5.29 | — | $ | 41.38 | 14.66 | % | $ | 574.9 | 0.80 | % | 0.71 | % | 0.80 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 32.02 | 0.35 | 3.72 | 4.07 | — | $ | 36.09 | 12.71 | % | $ | 581.8 | 0.82 | % | 1.05 | % | 0.82 | % | 47 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 33.44 | 0.21 | (1.44 | ) | (1.23 | ) | (0.19 | ) | $ | 32.02 | -3.69 | % | $ | 535.3 | �� | 0.81 | % | 0.69 | % | 0.81 | % | 47 | % | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 29.41 | 0.12 | 4.02 | 4.14 | (0.11 | ) | $ | 33.44 | 14.07 | % | $ | 518.7 | 0.83 | % | 0.69 | % | 0.83 | % | 46 | % | |||||||||||||||||||||||||||||||||||||||
ON Bond Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 17.56 | 0.64 | (1.18 | ) | (0.54 | ) | — | $ | 17.02 | -3.08 | % | $ | 257.7 | 0.59 | % | 3.27 | % | 0.59 | % | 40 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 16.54 | 0.04 | 0.98 | 1.02 | — | $ | 17.56 | 6.17 | % | $ | 317.3 | 0.63 | % | 3.16 | % | 0.63 | % | 114 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 15.33 | 0.59 | 0.62 | 1.21 | — | $ | 16.54 | 7.89 | % | $ | 158.7 | 0.65 | % | 3.33 | % | 0.65 | % | 88 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 15.65 | 0.56 | (0.88 | ) | (0.32 | ) | — | $ | 15.33 | -2.04 | % | $ | 154.0 | 0.64 | % | 3.46 | % | 0.64 | % | 93 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 14.78 | 0.50 | 0.37 | 0.87 | — | $ | 15.65 | 5.89 | % | $ | 158.7 | 0.64 | % | 3.34 | % | 0.64 | % | 35 | % | ||||||||||||||||||||||||||||||||||||||||
ON Omni Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 32.60 | 0.40 | (5.15 | ) | (4.75 | ) | — | $ | 27.85 | -14.57 | % | $ | 53.6 | 0.77 | % | 1.16 | % | 0.77 | % | 225 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 26.93 | 0.31 | 5.36 | 5.67 | — | $ | 32.60 | 21.05 | % | $ | 68.4 | 0.78 | % | 1.02 | % | 0.78 | % | 187 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 24.43 | 0.25 | 2.25 | 2.50 | — | $ | 26.93 | 10.23 | % | $ | 57.9 | 0.80 | % | 1.09 | % | 0.80 | % | 194 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 24.15 | 0.28 | 0.24 | 0.52 | (0.24 | ) | $ | 24.43 | 2.15 | % | $ | 48.7 | 0.77 | % | 1.23 | % | 0.77 | % | 186 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 21.74 | 0.26 | 2.37 | 2.63 | (0.22 | ) | $ | 24.15 | 12.12 | % | $ | 37.2 | 0.77 | % | 1.06 | % | 0.77 | % | 198 | % | |||||||||||||||||||||||||||||||||||||||
ON Capital Appreciation Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 43.66 | 0.40 | (6.33 | ) | (5.93 | ) | — | $ | 37.73 | -13.58 | % | $ | 93.2 | 0.89 | % | 0.86 | % | 0.89 | % | 55 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 37.70 | 1.28 | 4.68 | 5.96 | — | $ | 43.66 | 15.81 | % | $ | 125.6 | 0.86 | % | 1.00 | % | 0.86 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 32.88 | 0.91 | 3.91 | 4.82 | — | $ | 37.70 | 14.66 | % | $ | 195.7 | 0.82 | % | 1.21 | % | 0.82 | % | 55 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 33.82 | 0.29 | (0.98 | ) | (0.69 | ) | (0.25 | ) | $ | 32.88 | -2.05 | % | $ | 430.4 | 0.80 | % | 0.86 | % | 0.80 | % | 69 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 31.24 | 0.08 | 2.59 | 2.67 | (0.09 | ) | $ | 33.82 | 8.54 | % | $ | 449.4 | 0.83 | % | 0.56 | % | 0.83 | % | 67 | % |
# Performance does not include fees and expenses imposed by a variable annuity contract. Had those fees and expenses been included, performance would have been lower than the returns presented.
The accompanying notes are an integral part of these financial statements.
139
Ohio National Fund, Inc.
Financial Highlights
|
Selected per-share data | Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations | Ratios to average net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios net of expenses reduced or reimbursed by adviser | Ratios assuming no expenses reduced or reimbursed by adviser | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
gain (loss) on investments, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
futures contracts, foreign | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, | currency contracts, and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of | Net investment | other foreign currency | Total from | Net asset value, | Net assets at end | Net investment | Portfolio turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||
year | income (loss) | related transactions | operations | end of year | Total Return# | of year (in millions) | Expenses | income (loss) | Expenses | rate | |||||||||||||||||||||||||||||||||||||||||||||||
ON International Equity Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 15.08 | 0.23 | (2.24 | ) | (2.01 | ) | $ | 13.07 | -13.33 | % | $ | 518.8 | 0.86 | % | 1.93 | % | 0.86 | % | 44 | % | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 11.89 | 0.18 | 3.01 | 3.19 | $ | 15.08 | 26.83 | % | $ | 158.1 | 1.06 | % | 1.25 | % | 1.06 | % | 132 | %(a) | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 12.50 | 0.22 | (0.83 | ) | (0.61 | ) | $ | 11.89 | -4.88 | % | $ | 141.5 | 1.02 | % | 1.57 | % | 1.02 | % | 69 | % | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 12.55 | 0.19 | (0.24 | ) | (0.05 | ) | $ | 12.50 | -0.40 | %(b) | $ | 159.0 | 1.00 | % | 1.21 | % | 1.00 | % | 72 | % | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.85 | 0.18 | (1.48 | ) | (1.30 | ) | $ | 12.55 | -9.39 | % | $ | 174.4 | 0.84 | % | 1.43 | % | 1.00 | % | 95 | % | ||||||||||||||||||||||||||||||||||||
ON Foreign Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 33.22 | 0.57 | (5.76 | ) | (5.19 | ) | $ | 28.03 | -15.62 | % | $ | 55.1 | 1.17 | % | 1.72 | % | 1.17 | % | 22 | % | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 27.72 | 0.32 | 5.18 | 5.50 | $ | 33.22 | 19.84 | % | $ | 79.7 | 1.22 | % | 1.01 | % | 1.22 | % | 126 | %(a) | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 29.98 | 0.26 | (2.52 | ) | (2.26 | ) | $ | 27.72 | -7.54 | % | $ | 66.7 | 1.24 | % | 0.89 | % | 1.24 | % | 51 | % | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 27.39 | 0.03 | 2.56 | 2.59 | $ | 29.98 | 9.46 | %(b) | $ | 78.3 | 1.23 | % | 0.12 | % | 1.23 | % | 58 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 30.03 | 0.12 | (2.76 | ) | (2.64 | ) | $ | 27.39 | -8.79 | % | $ | 67.6 | 1.18 | % | 0.38 | % | 1.18 | % | 65 | % | ||||||||||||||||||||||||||||||||||||
ON Janus Henderson Forty Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 19.93 | (0.03 | ) | 1.07 | 1.04 | $ | 20.97 | 5.22 | % | $ | 149.3 | 0.87 | % | -0.15 | % | 0.87 | % | 48 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 15.61 | (0.03 | ) | 4.35 | 4.32 | $ | 19.93 | 27.67 | % | $ | 60.6 | 0.96 | % | -0.15 | % | 0.96 | % | 57 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 15.09 | (0.02 | ) | 0.54 | 0.52 | $ | 15.61 | 3.45 | % | $ | 49.9 | 0.95 | % | -0.09 | % | 0.95 | % | 63 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 13.70 | (0.01 | ) | 1.40 | 1.39 | $ | 15.09 | 10.15 | % | $ | 51.4 | 0.93 | % | -0.10 | % | 0.93 | % | 60 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 12.50 | (0.03 | ) | 1.23 | 1.20 | $ | 13.70 | 9.60 | % | $ | 39.9 | 0.94 | % | -0.23 | % | 0.94 | % | 55 | % | |||||||||||||||||||||||||||||||||||||
ON Janus Henderson Venture Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 32.99 | (0.10 | ) | (2.00 | ) | (2.10 | ) | $ | 30.89 | -6.37 | % | $ | 207.4 | 0.85 | % | -0.23 | % | 0.85 | % | 33 | % | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 26.61 | (0.06 | ) | 6.44 | 6.38 | $ | 32.99 | 23.98 | % | $ | 276.2 | 0.85 | % | -0.19 | % | 0.85 | % | 26 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 25.01 | 0.01 | 1.59 | 1.60 | $ | 26.61 | 6.40 | % | $ | 232.3 | 0.86 | % | 0.04 | % | 0.86 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 25.07 | (0.03 | ) | (0.03 | ) | (0.06 | ) | $ | 25.01 | -0.24 | %(b) | $ | 238.2 | 0.85 | % | -0.12 | % | 0.85 | % | 37 | % | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 22.65 | (0.05 | ) | 2.47 | 2.42 | $ | 25.07 | 10.64 | % | $ | 212.1 | 0.89 | % | -0.31 | % | 0.89 | % | 58 | % |
(a) | Effective May 1, 2017, the sub-adviser to the ON International Equity Portfolio changed from Federated Global Investment Management Corp. to Lazard Asset Management LLC, and the sub-adviser to the ON Foreign Portfolio changed from Federated Global Investment Management Corp. to Templeton Global Advisors Limited. Costs of purchases and proceeds from sales of portfolio securities associated with the changes in the sub-advisers contributed to higher portfolio turnover rates for the year ended December 31, 2017 as compared to prior years. |
(b) | Initial Public Offering (IPO) investments had a significant impact on the total return in this period and such performance may be difficult to repeat. |
# Performance does not include fees and expenses imposed by a variable annuity contract. Had those fees and expenses been included, performance would have been lower than the returns presented.
The accompanying notes are an integral part of these financial statements.
140
Ohio National Fund, Inc.
Financial Highlights
|
Selected per-share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations | Distributions | Ratios to average net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios net of expenses reduced or reimbursed by adviser | Ratios assuming no expenses reduced or reimbursed by adviser | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
unrealized gain (loss) on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investments, futures | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
contracts, and foreign | from net | Net assets at end | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, | Net investment | currency related | Total from | investment | Net asset value, | of year | Net investment | Portfolio turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of year | income (loss) | transactions | operations | income | end of year | Total Return# | (in millions) | Expenses | income (loss) | Expenses | rate | |||||||||||||||||||||||||||||||||||||||||||||||||
ON Janus Henderson Enterprise Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 38.60 | 0.02 | (1.26 | ) | (1.24 | ) | — | $ | 37.36 | -3.21 | % | $ | 102.6 | 0.96 | % | 0.06 | % | 0.96 | % | 103 | %(a) | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 30.37 | (0.09 | ) | 8.32 | 8.23 | — | $ | 38.60 | 27.10 | % | $ | 77.8 | 0.98 | % | -0.24 | % | 0.98 | % | 57 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 29.90 | (0.09 | ) | 0.56 | 0.47 | — | $ | 30.37 | 1.57 | % | $ | 70.2 | 0.98 | % | -0.29 | % | 0.98 | % | 61 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 31.49 | (0.07 | ) | (1.52 | ) | (1.59 | ) | — | $ | 29.90 | -5.05 | %(b) | $ | 78.7 | 0.94 | % | -0.21 | % | 0.94 | % | 59 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 28.24 | (0.05 | ) | 3.30 | 3.25 | — | $ | 31.49 | 11.51 | % | $ | 86.7 | 0.94 | % | -0.18 | % | 0.94 | % | 61 | % | |||||||||||||||||||||||||||||||||||||||
ON S&P 500® Index Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 29.52 | 0.48 | (1.89 | ) | (1.41 | ) | — | $ | 28.11 | -4.78 | % | $ | 1,111.5 | 0.38 | % | 1.58 | % | 0.38 | % | 18 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 24.32 | 0.37 | 4.83 | 5.20 | — | $ | 29.52 | 21.38 | % | $ | 1,144.2 | 0.38 | % | 1.65 | % | 0.38 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 21.82 | 0.25 | 2.25 | 2.50 | — | $ | 24.32 | 11.46 | % | $ | 842.6 | 0.42 | % | 1.84 | % | 0.42 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 21.93 | 0.37 | (0.17 | ) | 0.20 | (0.31 | ) | $ | 21.82 | 0.91 | % | $ | 410.7 | 0.41 | % | 1.72 | % | 0.41 | % | 14 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 19.63 | 0.32 | 2.25 | 2.57 | (0.27 | ) | $ | 21.93 | 13.11 | % | $ | 388.2 | 0.43 | % | 1.64 | % | 0.43 | % | 11 | % | |||||||||||||||||||||||||||||||||||||||
ON Federated Strategic Value Dividend Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 17.88 | 0.87 | (2.38 | ) | (1.51 | ) | — | $ | 16.37 | -8.45 | % | $ | 321.8 | 0.76 | % | 3.88 | % | 0.76 | % | 18 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 15.60 | 0.59 | 1.69 | 2.28 | — | $ | 17.88 | 14.62 | % | $ | 596.7 | 0.75 | % | 3.77 | % | 0.75 | % | 27 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 14.07 | 0.36 | 1.17 | 1.53 | — | $ | 15.60 | 10.87 | % | $ | 475.5 | 0.78 | % | 3.19 | % | 0.78 | % | 32 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 13.92 | 0.53 | 0.06 | 0.59 | (0.44 | ) | $ | 14.07 | 4.26 | % | $ | 309.8 | 0.78 | % | 3.47 | % | 0.78 | % | 13 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.09 | 0.93 | 0.68 | 1.61 | (0.78 | ) | $ | 13.92 | 12.41 | % | $ | 332.6 | 0.78 | % | 5.37 | % | 0.78 | % | 22 | % | |||||||||||||||||||||||||||||||||||||||
ON Federated High Income Bond Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 19.36 | 1.41 | (2.04 | ) | (0.63 | ) | — | $ | 18.73 | -3.25 | % | $ | 202.1 | 0.75 | % | 5.39 | % | 0.75 | % | 14 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 18.10 | 1.04 | 0.22 | 1.26 | — | $ | 19.36 | 6.96 | % | $ | 319.1 | 0.74 | % | 5.21 | % | 0.74 | % | 30 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 15.82 | 0.43 | 1.85 | 2.28 | — | $ | 18.10 | 14.41 | % | $ | 313.8 | 0.80 | % | 5.56 | % | 0.80 | % | 30 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 16.32 | 1.18 | (1.68 | ) | (0.50 | ) | — | $ | 15.82 | -3.06 | % | $ | 194.2 | 0.80 | % | 5.65 | % | 0.80 | % | 29 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 15.88 | 1.57 | (1.13 | ) | 0.44 | — | $ | 16.32 | 2.77 | % | $ | 230.1 | 0.77 | % | 5.73 | % | 0.77 | % | 33 | % |
(a) | Effective May 1, 2018, the sub-adviser changed from Goldman Sachs Asset Management, L.P. to Janus Capital Management LLC. Costs of purchases and proceeds from sales of portfolio securities associated with the change in the sub-adviser contributed to a higher portfolio turnover rate for the year ended December 31, 2018 as compared to prior periods. |
(b) | Initial Public Offering (IPO) investments had a significant impact on the total return in this period and such performance may be difficult to repeat. |
# Performance does not include fees and expenses imposed by a variable annuity contract. Had those fees and expenses been included, performance would have been lower than the returns presented.
The accompanying notes are an integral part of these financial statements.
141
Ohio National Fund, Inc.
Financial Highlights |
Selectedper-share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations | Distributions | Ratios to average net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios net of expenses reduced or reimbursed by adviser | Ratios assuming no expenses reduced or reimbursed by adviser | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | Net investment income (loss) | Net realized and unrealized gain (loss) on investments and futures contracts | Total from operations | Distributions from net investment income | Net asset value, end of year | Total Return# | Net assets at end (in millions) | Expenses | Net investment income (loss) | Expenses | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
ON ClearBridge Small Cap Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 57.46 | 0.19 | (5.50 | ) | (5.31 | ) | — | $ | 52.15 | -9.24 | % | $ | 126.2 | 0.90 | % | 0.19 | % | 0.90 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 51.21 | 0.20 | 6.05 | 6.25 | — | $ | 57.46 | 12.20 | % | $ | 275.1 | 0.89 | % | 0.30 | % | 0.89 | % | 46 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 40.00 | 0.22 | 10.99 | 11.21 | — | $ | 51.21 | 28.03 | % | $ | 275.7 | 0.93 | % | 0.92 | % | 0.93 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 41.01 | (0.10 | ) | (0.91 | ) | (1.01 | ) | — | $ | 40.00 | -2.46 | % | $ | 94.0 | 1.01 | % | -0.29 | % | 1.01 | % | 126 | %(a) | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 40.03 | (0.19 | ) | 1.17 | 0.98 | — | $ | 41.01 | 2.45 | % | $ | 75.5 | 1.00 | % | -0.45 | % | 1.00 | % | 44 | % | |||||||||||||||||||||||||||||||||||||||
ONNasdaq-100® Index Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 16.67 | 0.12 | (0.19 | ) | (0.07 | ) | — | $ | 16.60 | -0.42 | % | $ | 327.6 | 0.41 | % | 0.67 | % | 0.41 | % | 22 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 12.59 | 0.07 | 4.01 | 4.08 | — | $ | 16.67 | 32.41 | % | $ | 257.2 | 0.45 | % | 0.71 | % | 0.45 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 11.80 | 0.09 | 0.70 | 0.79 | — | $ | 12.59 | 6.69 | % | $ | 156.1 | 0.48 | % | 0.84 | % | 0.48 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 10.88 | 0.09 | 0.91 | 1.00 | (0.08 | ) | $ | 11.80 | 9.14 | % | $ | 138.6 | 0.46 | % | 0.79 | % | 0.46 | % | 19 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 9.25 | 0.12 | 1.62 | 1.74 | (0.11 | ) | $ | 10.88 | 18.77 | % | $ | 121.7 | 0.48 | % | 1.23 | % | 0.48 | % | 23 | % | |||||||||||||||||||||||||||||||||||||||
ON Bristol Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 30.22 | 0.20 | (5.63 | ) | (5.43 | ) | — | $ | 24.79 | -17.97 | % | $ | 155.3 | 0.82 | % | 0.63 | % | 0.82 | % | 272 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 24.02 | 0.16 | 6.04 | 6.20 | — | $ | 30.22 | 25.81 | % | $ | 223.7 | 0.82 | % | 0.47 | % | 0.82 | % | 220 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 21.49 | 0.12 | 2.41 | 2.53 | — | $ | 24.02 | 11.77 | % | $ | 207.9 | 0.83 | % | 0.49 | % | 0.83 | % | 223 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 20.75 | 0.12 | 0.73 | 0.85 | (0.11 | ) | $ | 21.49 | 4.08 | % | $ | 218.7 | 0.81 | % | 0.55 | % | 0.81 | % | 228 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 18.29 | 0.09 | 2.45 | 2.54 | (0.08 | ) | $ | 20.75 | 13.88 | % | $ | 232.0 | 0.81 | % | 0.42 | % | 0.81 | % | 239 | % | |||||||||||||||||||||||||||||||||||||||
ON Bryton Growth Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 24.91 | (0.26 | ) | (1.03 | ) | (1.29 | ) | — | $ | 23.62 | -5.18 | % | $ | 25.5 | 1.05 | % | -0.55 | % | 1.05 | % | 201 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 20.49 | (0.21 | ) | 4.63 | 4.42 | — | $ | 24.91 | 21.57 | % | $ | 56.8 | 0.98 | % | -0.55 | % | 0.98 | % | 196 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 19.60 | (0.19 | ) | 1.08 | 0.89 | — | $ | 20.49 | 4.54 | % | $ | 94.6 | 0.92 | % | -0.62 | % | 0.92 | % | 188 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 20.47 | (0.11 | ) | (0.76 | ) | (0.87 | ) | — | $ | 19.60 | -4.25 | % | $ | 162.2 | 0.88 | % | -0.53 | % | 0.88 | % | 169 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 19.28 | (0.09 | ) | 1.28 | 1.19 | — | $ | 20.47 | 6.17 | % | $ | 179.1 | 0.88 | % | -0.45 | % | 0.88 | % | 178 | % |
(a) | Effective September 25, 2015, thesub-adviser changed from Eagle Asset Management, Inc. to ClearBridge Investments, LLC. Costs of purchases and proceeds from sales of portfolio securities associated with the change in thesub-adviser contributed to a higher portfolio turnover rate for the year ended December 31, 2015 as compared to prior years. |
# Performance does not include fees and expenses imposed by a variable annuity contract. Had those fees and expenses been included, performance would have been lower than the returns presented.
The accompanying notes are an integral part of these financial statements.
142
Ohio National Fund, Inc.
Financial Highlights |
Selectedper-share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations | Distributions | Ratios to average net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments, futures contracts, foreign currency related transactions, written | Ratios net of expenses reduced or reimbursed by adviser | Ratios assuming no expenses reduced or reimbursed by adviser | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | Net investment income | options, and capital distributions received from underlying mutual funds | Total from operations | Distributions from net investment income | Net asset value, end of year | Total Return# | Net assets at end (in millions) | Expenses | Net investment income | Expenses | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
ON ICON Balanced Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 22.03 | 0.49 | (2.82 | ) | (2.33 | ) | — | $ | 19.70 | -10.58 | % | $ | 466.7 | 0.64 | % | 1.58 | % | 0.64 | % | 47 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 19.86 | 0.47 | 1.70 | 2.17 | — | $ | 22.03 | 10.93 | % | $ | 955.1 | 0.62 | % | 1.93 | % | 0.62 | % | 106 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 18.99 | 0.39 | 0.48 | 0.87 | — | $ | 19.86 | 4.58 | % | $ | 952.1 | 0.64 | % | 2.05 | % | 0.64 | % | 99 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 18.96 | 0.30 | (0.02 | ) | 0.28 | (0.25 | ) | $ | 18.99 | 1.47 | % | $ | 864.9 | 0.64 | % | 1.58 | % | 0.64 | % | 92 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 18.02 | 0.16 | 0.92 | 1.08 | (0.14 | ) | $ | 18.96 | 5.99 | % | $ | 833.1 | 0.64 | % | 1.80 | % | 0.68 | % | 94 | % | |||||||||||||||||||||||||||||||||||||||
ON S&P MidCap 400® Index Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 17.46 | 0.10 | (2.10 | ) | (2.00 | ) | — | $ | 15.46 | -11.45 | % | $ | 306.6 | 0.51 | % | 1.32 | % | 0.51 | % | 28 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 15.12 | 0.04 | 2.30 | 2.34 | — | $ | 17.46 | 15.48 | % | $ | 88.8 | 0.71 | % | 0.92 | % | 0.71 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 13.81 | 0.17 | 1.14 | 1.31 | — | $ | 15.12 | 9.49 | % | $ | 47.9 | 0.79 | % | 1.24 | % | 0.79 | % | 179 | %(a) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 14.49 | 0.25 | (0.72 | ) | (0.47 | ) | (0.21 | ) | $ | 13.81 | -3.24 | % | $ | 46.3 | 0.77 | % | 1.54 | % | 0.77 | % | 72 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.70 | 0.25 | 0.77 | 1.02 | (0.23 | ) | $ | 14.49 | 7.44 | % | $ | 55.1 | 0.77 | % | 1.77 | % | 0.77 | % | 79 | % | |||||||||||||||||||||||||||||||||||||||
ON Bristol Growth Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 24.19 | 0.12 | (3.72 | ) | (3.60 | ) | — | $ | 20.59 | -14.88 | % | $ | 87.5 | 0.88 | % | 0.43 | % | 0.88 | % | 269 | % | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 18.65 | 0.07 | 5.47 | 5.54 | — | $ | 24.19 | 29.71 | % | $ | 128.0 | 0.88 | % | 0.24 | % | 0.88 | % | 218 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 17.31 | 0.07 | 1.27 | 1.34 | — | $ | 18.65 | 7.74 | % | $ | 117.6 | 0.89 | % | 0.36 | % | 0.89 | % | 162 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 16.44 | 0.08 | 0.86 | 0.94 | (0.07 | ) | $ | 17.31 | 5.72 | % | $ | 116.2 | 0.86 | % | 0.43 | % | 0.86 | % | 168 | % | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 14.72 | 0.06 | 1.71 | 1.77 | (0.05 | ) | $ | 16.44 | 12.01 | % | $ | 124.1 | 0.86 | % | 0.34 | % | 0.86 | % | 192 | % | |||||||||||||||||||||||||||||||||||||||
ON Risk Managed Balanced Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 13.01 | 0.17 | (0.27 | ) | (0.10 | ) | — | $ | 12.91 | -0.77 | % | $ | 347.1 | 0.99 | % | 1.27 | % | 0.99 | % | 131 | %(b) | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | $ | 11.06 | 0.14 | 1.81 | 1.95 | — | $ | 13.01 | 17.63 | % | $ | 344.2 | 1.00 | % | 1.22 | % | 1.00 | % | 72 | %(b) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | $ | 10.66 | 0.09 | 0.31 | 0.40 | — | $ | 11.06 | 3.75 | % | $ | 272.1 | 1.03 | % | 1.09 | % | 1.03 | % | 78 | % | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | $ | 10.83 | 0.03 | (0.17 | ) | (0.14 | ) | (0.03 | ) | $ | 10.66 | -1.32 | % | $ | 154.3 | 1.11 | % | 0.81 | % | 1.11 | % | 71 | % | |||||||||||||||||||||||||||||||||||||
Period From May 1, 2014 (inception) to December 31, 2014 | $ | 10.00 | 0.03 | 0.80 | 0.83 | — | $ | 10.83 | 8.30 | %* | $ | 33.8 | 1.43 | %** | 0.43 | %** | 1.43 | %** | 94 | %* |
* | Not annualized |
** | Annualized |
(a) | Effective December 16, 2016, thesub-adviser to the Portfolio changed from First Trust Advisors L.P. to Geode Capital Management, LLC. Costs of purchases and proceeds from sales of portfolio securities associated with the change in thesub-adviser contributed to a higher portfolio turnover rate for the year ended December 31, 2016 as compared to prior years. |
(b) | The portfolio turnover calculation includes purchases and sales from mortgage dollar roll transactions. Without the effect of mortgage dollar roll transactions, the portfolio turnover rate would have been 102% for the year ended December 31, 2018 and 63% for the year ended December 31, 2017 (see Note 2 of the Notes to Financial Statements). |
# Performance does not include fees and expenses imposed by a variable annuity contract. Had those fees and expenses been included, performance would have been lower than the returns presented.
The accompanying notes are an integral part of these financial statements.
143
Ohio National Fund, Inc.
Financial Highlights |
Selectedper-share data | Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations | Ratios to average net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios net of expenses reduced or reimbursed by adviser | Ratios assuming no expenses reduced or reimbursed by adviser | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | Net investment income | Net realized and unrealized gain (loss) on investments and capital gain distributions received from underlying mutual funds | Total from operations | Net asset value, end of year | Total Return# | Net assets at end of year (in millions) | Expenses† | Net investment income† | Expenses† | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||
ON Conservative Model Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $10.53 | 0.20 | (0.52 | ) | (0.32 | ) | $ | 10.21 | -3.04 | % | $ | 79.0 | 0.27 | % | 1.70 | % | 0.52 | % | 35 | % | |||||||||||||||||||||||||||||||||||
Period From March 1, 2017 (inception) to December 31, 2017 | $10.00 | 0.16 | 0.37 | 0.53 | $ | 10.53 | 5.30 | %* | $ | 99.7 | 0.25 | %** | 1.71 | %** | 0.51 | %** | 29 | %* | |||||||||||||||||||||||||||||||||||||
ON Moderately Conservative Model Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $10.69 | 0.15 | (0.75 | ) | (0.60 | ) | $ | 10.09 | -5.61 | % | $ | 237.2 | 0.28 | % | 1.26 | % | 0.45 | % | 38 | % | |||||||||||||||||||||||||||||||||||
Period From March 1, 2017 (inception) to December 31, 2017 | $10.00 | 0.13 | 0.56 | 0.69 | $ | 10.69 | 6.90 | %* | $ | 326.0 | 0.25 | %** | 1.40 | %** | 0.45 | %** | 22 | %* | |||||||||||||||||||||||||||||||||||||
ON Balanced Model Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $10.81 | 0.09 | (0.93 | ) | (0.84 | ) | $ | 9.97 | -7.77 | % | $ | 1,146.9 | 0.31 | % | 0.77 | % | 0.42 | % | 37 | % | |||||||||||||||||||||||||||||||||||
Period From March 1, 2017 (inception) to December 31, 2017 | $10.00 | 0.09 | 0.72 | 0.81 | $ | 10.81 | 8.10 | %* | $ | 1,562.6 | 0.25 | %** | 1.01 | %** | 0.42 | %** | 25 | %* | |||||||||||||||||||||||||||||||||||||
ON Moderate Growth Model Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $11.05 | 0.05 | (1.17 | ) | (1.12 | ) | $ | 9.93 | -10.14 | % | $ | 1,945.0 | 0.35 | % | 0.42 | % | 0.42 | % | 49 | % | |||||||||||||||||||||||||||||||||||
Period From March 1, 2017 (inception) to December 31, 2017 | $10.00 | 0.07 | 0.98 | 1.05 | $ | 11.05 | 10.50 | %* | $ | 2,646.8 | 0.26 | %** | 0.80 | %** | 0.42 | %** | 23 | %* | |||||||||||||||||||||||||||||||||||||
ON Growth Model Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $11.15 | 0.02 | (1.31 | ) | (1.29 | ) | $ | 9.86 | -11.57 | % | $ | 424.2 | 0.31 | % | 0.17 | % | 0.43 | % | 62 | % | |||||||||||||||||||||||||||||||||||
Period From March 1, 2017 (inception) to December 31, 2017 | $10.00 | 0.05 | 1.10 | 1.15 | $ | 11.15 | 11.50 | %* | $ | 543.8 | 0.25 | %** | 0.51 | %** | 0.43 | %** | 24 | %* |
* | Not annualized |
** | Annualized |
# Performance does not include fees and expenses imposed by a variable annuity contract. Had those fees and expenses been included, performance would have been lower than the returns presented.
† Ratios presented only reflect the direct income and expenses for the Portfolio, and do not include the indirect expenses related to the underlying funds in which the Portfolio invests.
The accompanying notes are an integral part of these financial statements.
144
Ohio National Fund, Inc.
|
December 31, 2018 |
(1) | Organization |
Ohio National Fund, Inc. (the “Fund”) is a Maryland corporation registered under the Investment Company Act of 1940, as amended (the “40 Act”). The Fund is anopen-end investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The Fund consists of twenty-five separate investment portfolios (the “Portfolios”) that seek the following objectives and strategies:
⬛ | ON Equity Portfolio – Long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in equity securities. |
⬛ | ON Bond Portfolio – High level of income and opportunity for capital appreciation consistent with preservation of capital by investing, under normal circumstances, at least 80% of its assets in corporate debt securities. |
⬛ | ON Omni Portfolio – High level of long-term total return consistent with preservation of capital by investing in stocks, bonds, and money market instruments. |
⬛ | ON Capital Appreciation Portfolio – Long-term growth of capital by investing primarily in equity and equity related securities of established companies with either current or emerging earnings growth not fully appreciated or recognized by the market. |
⬛ | ON International Equity Portfolio – Long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in equity securities of foreign companies. |
⬛ | ON Foreign Portfolio – Long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in foreign securities. |
⬛ | ON Janus Henderson Forty Portfolio – Long-term capital growth by investing primarily in domestic and foreign equity securities selected for growth potential. |
⬛ | ON Janus Henderson Venture Portfolio – Long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in stocks of small capitalization companies. |
⬛ | ON Janus Henderson Enterprise Portfolio – Long-term total return by investing, under normal circumstances, at least 80% of its assets in equity securities ofmid-cap companies, primarily those that are strategically positioned for long-term growth. |
⬛ | ON S&P 500®Index Portfolio – Total return approximating that of the Standard & Poor’s 500®Index (S&P 500®Index), including reinvestment of dividends, at a risk level consistent with that of the S&P 500®Index by investing, under normal circumstances, more than 80% of its assets in securities included in the S&P 500®Index. |
⬛ | ON Federated Strategic Value Dividend Portfolio – Growth of capital and income by investing primarily in high dividend paying common stocks with dividend growth potential. |
⬛ | ON Federated High Income Bond Portfolio – High current income by investing, under normal circumstances, at least 80% of its assets in lower rated corporate debt obligations commonly referred to as “junk bonds”. The Portfolio’s investments are generally rated Ba or lower by Moody’s, or BB or lower by Standard & Poor’s or Fitch. |
⬛ | ON ClearBridge Small Cap Portfolio – Long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in common stocks and other equity securities of small capitalization companies or in other investments that the portfolio managers believe have similar economic characteristics. |
⬛ | ONNasdaq-100®Index Portfolio – Long-term growth of capital by investing, under normal circumstances, more than 80% of its assets in the common stocks of companies composing theNasdaq-100®Index. |
⬛ | ON Bristol Portfolio – Long-term growth of capital by investing primarily in common stocks of the 1,000 largest publicly traded U.S. companies in terms of market capitalization. |
⬛ | ON Bryton Growth Portfolio – Long-term growth of capital by investing primarily in common stocks of growth-oriented U.S. companies smaller than the 500 largest publicly traded U.S. companies in terms of market capitalization. |
⬛ | ON ICON Balanced Portfolio – Capital appreciation and income by investing, under normal circumstances, up to 75% of its assets in equity securities of domestic companies of any market capitalization while maintaining a minimum of 25% of its assets in fixed income securities. |
⬛ | ON S&P MidCap 400®Index Portfolio – Total return approximating that of the Standard & Poor’s MidCap 400®Index (S&P MidCap 400®Index), including reinvestment of dividends, at a risk level consistent with that of the S&P MidCap 400®Index by investing, under normal circumstances, more than 80% of its assets in the securities included in the S&P MidCap 400®Index. |
145 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
⬛ | ON Bristol Growth Portfolio – Long-term growth of capital by investing, under normal circumstances, at least 80% of its assets in common stocks of the 1,000 largest publicly traded U.S. companies in terms of market capitalization. |
⬛ | ON Risk Managed Balanced Portfolio – Long-term capital growth, consistent with preservation of capital and balanced by current income. The Portfolio invests in a balanced portfolio of equity and fixed-income securities and a risk management portfolio intended to enhance the risk adjusted return of the Portfolio. |
⬛ | ON Conservative Model Portfolio* – Current income and preservation of capital. The Portfolio is a fund of funds that pursues its investment objective by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity0-25%, International Equity0-10%, and Fixed Income65-90%. |
⬛ | ON Moderately Conservative Model Portfolio* – Current income and moderate growth of capital with a greater emphasis on current income. The Portfolio is a fund of funds that pursues its investment objective by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity20-40%, International Equity5-20%, and Fixed Income30-70%. |
⬛ | ON Balanced Model Portfolio* – A balance between growth of capital and current income with a greater emphasis on growth of capital. The Portfolio is a fund of funds that pursues its investment objective by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity25-50%, International Equity10-25%, and Fixed Income25-50%. |
⬛ | ON Moderate Growth Model Portfolio* – Growth of capital and moderate current income with a greater emphasis on growth of capital. The Portfolio is a fund of funds that pursues its investment objective by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity40-60%, International Equity15-35%, and Fixed Income10-30%. |
⬛ | ON Growth Model Portfolio* – Growth of capital and some current income. The Portfolio is a fund of funds that pursues its investment objective by investing in underlying mutual funds. Under normal circumstances, the Portfolio intends to have investment exposure to various asset classes within the following target asset allocation ranges: U.S. Equity50-80%, International Equity15-45%, and Fixed Income0-15%. |
* | Collectively, the “ON Model Portfolios”. |
The names presented above reflect the current Portfolio names. Effective May 1, 2018, several Portfolios of the Fund underwent name changes. The changes, approved by the Fund’s Board of Directors (the “Board”), are detailed below:
Portfolio Name Prior to May 1, 2018 | Current Portfolio Name | |
Equity Portfolio | ON Equity Portfolio | |
Bond Portfolio | ON Bond Portfolio | |
Omni Portfolio | ON Omni Portfolio | |
Capital Appreciation Portfolio | ON Capital Appreciation Portfolio | |
Aggressive Growth Portfolio | ON Janus Henderson Forty Portfolio | |
Small Cap Growth Portfolio | ON Janus Henderson Venture Portfolio | |
Mid Cap Opportunity Portfolio | ON Janus Henderson Enterprise Portfolio | |
S&P 500®Index Portfolio | ON S&P 500®Index Portfolio | |
Stategic Value Portfolio | ON Federated Stategic Value Dividend Portfolio | |
High Income Bond Fund Portfolio | ON Federated High Income Bond Portfolio | |
ClearBridge Small Cap Portfolio | ON ClearBridge Small Cap Portfolio | |
Nasdaq-100®Index Portfolio | ONNasdaq-100®Index Portfolio | |
Bristol Portfolio | ON Bristol Portfolio | |
Bryton Growth Portfolio | ON Bryton Growth Portfolio | |
Balanced Portfolio | ON ICON Balanced Portfolio | |
S&P MidCap 400®Index Portfolio | ON S&P MidCap 400®Index Portfolio | |
Bristol Growth Portfolio | ON Bristol Growth Portfolio | |
Risk Managed Balanced Portfolio | ON Risk Managed Balanced Portfolio |
Additional detail regarding portfolio-specific objectives, policies, and investment strategies is provided in the prospectus and Statement of Additional Information of Ohio National Fund, Inc. There are no assurances that these objectives will be met. Each Portfolio, except the ONNasdaq-100® Index Portfolio, is classified as diversified for purposes of Section 5(b) of the 40 Act.
146 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
At present, the Fund issues its shares to separate accounts of The Ohio National Life Insurance Company (“ONLIC”), Ohio National Life Assurance Corporation (“ONLAC”), and National Security Life and Annuity Company (“NSLA”) to support certain benefits under variable contracts issued by those entities, as well as for purchases by other Portfolios of the Fund. In the future, Fund shares may be used for other purposes but, unless there is a change in applicable law, they will not be sold directly to the public.
Effective September 15, 2018 and March 16, 2018, respectively, ONLIC and NSLA no longer market, nor issue, variable annuities. ONLIC and NSLA will continue to service thein-force variable annuity contracts, the variable separate accounts, and underlying subaccounts regardless of new sales.
Interest in each Portfolio is represented by a separate class of the Fund’s capital stock, par value $1. Each share of a Portfolio participates equally in the Portfolio’s dividends, distributions, net assets, and voting matters.
The Fund is authorized to issue 1.55 billion of its capital shares. These authorized shares have been allocated to specific Portfolios of the Fund as follows:
Portfolio | Authorized Shares | |
ON Equity |
35,000,000 | |
ON Bond | 30,000,000 | |
ON Omni | 15,000,000 | |
ON Capital Appreciation | 25,000,000 | |
ON International Equity | 90,000,000 | |
ON Foreign | 32,000,000 | |
ON Janus Henderson Forty | 24,000,000 | |
ON Janus Henderson Venture | 30,000,000 | |
ON Janus Henderson Enterprise | 21,000,000 | |
ON S&P 500®Index | 90,000,000 | |
ON Federated Strategic Value Dividend | 75,000,000 | |
ON Federated High Income Bond | 45,000,000 | |
ON ClearBridge Small Cap | 15,000,000 |
Portfolio | Authorized Shares | |||
ONNasdaq-100®Index |
|
50,000,000 |
| |
ON Bristol | 23,000,000 | |||
ON Bryton Growth | 15,000,000 | |||
ON ICON Balanced | 90,000,000 | |||
ON S&P MidCap 400®Index | 30,000,000 | |||
ON Bristol Growth | 30,000,000 | |||
ON Risk Managed Balanced | 85,000,000 | |||
ON Conservative Model | 30,000,000 | |||
ON Moderately Conservative Model | 70,000,000 | |||
ON Balanced Model | 200,000,000 | |||
ON Moderate Growth Model | 300,000,000 | |||
ON Growth Model | 100,000,000 |
The Board periodically reallocates authorized shares among the Portfolios of the Fund and may authorize additional shares as deemed necessary.
Under the Fund’s organizational documents, its Officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund. However, based on experience, the risk of loss to the Fund is expected to be remote.
(2) | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements:
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Security Valuation
Investments are valued using pricing procedures approved by the Board.
147 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
Fixed income instruments that mature in sixty days or less, and of sufficient credit quality, are valued at amortized cost. Amortized cost valuation involves valuing a security at its cost initially and thereafter amortizing to maturity any discounts or premiums on the level-yield method, regardless of the impact of fluctuating market interest rates on the value of the security. In these instances, amortized cost approximates fair value.
Investments, other than those securities aforementioned, are valued as follows:
Domestic equity securities that are traded on U.S. exchanges, other than the Nasdaq Stock Market, are valued at the last trade price reported by the primary exchange of each security (4:00 pm Eastern Time for normal trading sessions). Domestic equity securities that are listed on the Nasdaq Stock Market are valued at the Nasdaq Official Closing Price (“NOCP”).Over-the-counter domestic equity securities are valued at the last trade price reported daily as of 4:00 pm Eastern Time (normal trading sessions).
Over-the-counter traded American Depositary Receipts (“ADRs”) may also be valued at an evaluated price based on the value of the underlying securities. If a domestic equity security is not traded on a particular day, the mean between the bid and ask prices reported at 4:00 pm Eastern Time (normal trading sessions) by the primary exchange will generally be used for valuation purposes. The principal sources for market quotations are independent pricing services that have been approved by the Board.
Fixed income securities that have a remaining maturity exceeding sixty days are generally valued at the evaluated bid price reported at 4:00 pm Eastern Time (normal trading sessions), as provided by independent pricing services approved by the Board. Many fixed income securities, including investment grade and high-yield corporate bonds, U.S. Treasury and government agency obligations, bank loans, and other asset-backed instruments are not actively traded on a daily basis. As such, the approved pricing services may use asset type-specific valuation models to provide good faith determinations that the holders of securities would receive in an orderly transaction under current market conditions. The valuation models may use observable market data such as recent transaction data, benchmark yields, broker/dealer inputs, valuations and yields of comparable instruments, relative credit information, observed market movements, and market research and news. Asset-backed securities and mortgage-backed securities may use valuation models that heavily consider predicted cash flows of each tranche of an issue, benchmark spreads, and unique attributes of the tranche. The last trade or last evaluated bid may be used if an evaluated bid price is not available.
U.S exchange-traded options are valued at the composite basis last sale price as reported to a Board-approved independent pricing service by the OPRA (Options Price Reporting Authority) at 4:15 pm Eastern Time (normal trading sessions). If there are no reported trades for a trading session, the evaluated composite-basis bid price will generally be used for valuation purposes.
Futures contracts are valued at the daily quoted settlement prices as reported by an approved independent pricing source.
Shares ofopen-end mutual funds are valued at each fund’s last calculated net asset value per share.
Shares ofclosed-end mutual funds that are traded on U.S. exchanges are valued similarly to other domestic equity securities, typically at the last trade price reported by the primary exchange of each fund (4:00 pm Eastern Time for normal trading sessions).
Foreign equity securities are initially priced at the reported close price of the exchange on which a security is primarily traded. Securities not traded on a particular day are valued at the mean between the last reported bid and ask quotes at daily close, or the last sale price when appropriate. The principal sources for market quotations are independent pricing services that have been approved by the Board.
Equity securities that are primarily traded on foreign exchanges, other than those with close times that are consistent with the normal 4:00 pm Eastern Time close of U.S. equity markets, are further subjected to fair valuation pricing procedures provided by an independent fair valuation service. The service provides data that can be used to estimate the price of a foreign issue that would prevail in a liquid market given market information available daily at 4:00 pm Eastern Time (normal trading sessions). Multiple factors may be considered in performing this valuation, including an issue’s local close price, relevant general and sector indices, currency fluctuations, and pricing of related depository receipts, exchange traded funds, and futures. The pricing procedures are performed for each individual security for which there is a fairly large degree of certainty that the local close price is not the liquid market price at the time of U.S. market close. The procedures are performed each day there is a change in a consistently used market index from the time of local close to the U.S. market close. Backtesting analysis is performed on a quarterly basis to monitor the effectiveness of these procedures. The testing is reviewed by management of the Fund as well as the Board. Prior results have indicated that these procedures have been effective in reaching valuation objectives.
Restricted securities, illiquid securities, or other investments for which market quotations or other observable market inputs are not readily available are valued at an estimate of value using methods determined in good faith by the Fund’s Pricing Committee under the supervision of the Board.
148 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
The differences between the aggregate cost and values of investments are reflected as unrealized appreciation or unrealized depreciation.
Pricing inputs used in the Fund’s determination of its investment values are categorized according to a three-tier hierarchy framework. The hierarchy is summarized in three broad levels:
Level 1: Quoted prices in active markets for identical securities.
Level 2: Other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.
Level 3: Significant unobservable inputs, including the Fund’s own assumptions used to determine the value of securities.
The following is a summary of the inputs used in valuing each of the Portfolio’s assets (liabilities) at value as of December 31, 2018:
Portfolio | Financial Instrument Type | Level 1 | Level 2 | Level 3 | ||||||||||
ON Equity | Common Stocks** | $ | 214,186,820 | $ | 3,094,851 | $ | — | |||||||
Preferred Securities** | — | 1,956,040 | — | |||||||||||
Money Market Funds | 17,836,286 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 232,023,106 | $ | 5,050,891 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Bond | Corporate Bonds** | $ | — | $ | 246,951,986 | $ | — | |||||||
Asset-Backed Securities** | — | 7,206,156 | — | |||||||||||
Sovereign Issues | — | 2,808,030 | — | |||||||||||
Money Market Funds | 1,131,852 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 1,131,852 | $ | 256,966,172 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Omni | Common Stocks** | $ | 39,956,138 | $ | — | $ | — | |||||||
Corporate Bonds** | — | 11,669,675 | — | |||||||||||
Master Limited Partnerships** | 901,246 | — | — | |||||||||||
Asset-Backed Securities** | — | 318,377 | — | |||||||||||
U.S. Treasury Obligations | — | 195,303 | — | |||||||||||
Money Market Funds | 116,964 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 40,974,348 | $ | 12,183,355 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Capital Appreciation | Common Stocks** | $ | 88,285,680 | $ | 806,220 | $ | — | |||||||
Money Market Funds | 1,160,187 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 89,445,867 | $ | 806,220 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON International Equity | Common Stocks** | $ | 76,078,603 | $ | 416,289,819 | $ | — | |||||||
Preferred Securities** | — | 9,797,901 | — | |||||||||||
Money Market Funds | 16,567,700 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 92,646,303 | $ | 426,087,720 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Foreign | Common Stocks** | $ | 6,614,167 | $ | 46,726,638 | $ | — | |||||||
Money Market Funds | 1,695,595 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 8,309,762 | $ | 46,726,638 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Janus Henderson Forty | Common Stocks** | $ | 144,379,584 | $ | — | $ | — | |||||||
Money Market Funds | 6,239,189 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 150,618,773 | $ | — | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Janus Henderson Venture | Common Stocks** | $ | 200,922,814 | $ | 1,589,235 | $ | — | |||||||
Master Limited Partnerships** | 4,371,183 | — | — | |||||||||||
Money Market Funds | 211,560 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 205,505,557 | $ | 1,589,235 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Janus Henderson Enterprise | Common Stocks** | $ | 99,176,768 | $ | 1,741,839 | $ | — | |||||||
Money Market Funds | 1,824,032 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 101,000,800 | $ | 1,741,839 | $ | — | |||||||||
|
|
|
|
|
|
149 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
Portfolio | Financial Instrument Type | Level 1 | Level 2 | Level 3 | ||||||||||
ON S&P 500®Index | Common Stocks** | $ | 1,102,842,898 | $ | — | $ | — | |||||||
Money Market Funds | 8,180,121 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 1,111,023,019 | $ | — | $ | — | |||||||||
|
|
|
|
|
| |||||||||
Futures Contracts | $ | 40,100 | $ | — | $ | — | ||||||||
|
|
|
|
|
| |||||||||
ON Federated Strategic Value Dividend | Common Stocks** | $ | 260,650,522 | $ | 53,892,566 | $ | — | |||||||
Money Market Funds | 5,547,275 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 266,197,797 | $ | 53,892,566 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Federated High Income Bond | Corporate Bonds** | $ | — | $ | 194,929,627 | $ | — | |||||||
Money Market Funds | 4,411,033 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 4,411,033 | $ | 194,929,627 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON ClearBridge Small Cap | Common Stocks** | $ | 123,384,247 | $ | — | $ | — | |||||||
Money Market Funds | 2,448,388 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 125,832,635 | $ | — | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ONNasdaq-100®Index | Common Stocks** | $ | 325,897,635 | $ | — | $ | — | |||||||
Money Market Funds | 653,327 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 326,550,962 | $ | — | $ | — | |||||||||
|
|
|
|
|
| |||||||||
Futures Contracts | $ | 6,651 | $ | — | $ | — | ||||||||
|
|
|
|
|
| |||||||||
ON Bristol | Common Stocks** | $ | 148,582,561 | $ | — | $ | — | |||||||
Master Limited Partnerships** | 3,394,017 | — | — | |||||||||||
Money Market Funds | 74,785 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 152,051,363 | $ | — | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON Bryton Growth | Common Stocks** | $ | 22,847,886 | $ | — | $ | — | |||||||
|
|
|
|
|
| |||||||||
ON ICON Balanced | Common Stocks** | $ | 313,566,300 | $ | — | $ | — | |||||||
Corporate Bonds** | — | 88,309,569 | — | |||||||||||
Closed-End Mutual Funds | 17,614,979 | — | — | |||||||||||
U.S. Treasury Obligations | — | 11,073,660 | — | |||||||||||
Preferred Securities** | 9,634,382 | — | — | |||||||||||
Asset-Backed Securities** | — | 6,713,886 | — | |||||||||||
Money Market Funds | 19,393,514 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 360,209,175 | $ | 106,097,115 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
ON S&P MidCap 400®Index | Common Stocks** | $ | 306,369,193 | $ | — | $ | — | |||||||
Money Market Funds | 87,493 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 306,456,686 | $ | — | $ | — | |||||||||
|
|
|
|
|
| |||||||||
Futures Contracts | $ | (1,916 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
| |||||||||
ON Bristol Growth | Common Stocks** | $ | 84,615,893 | $ | — | $ | — | |||||||
Master Limited Partnerships** | 2,023,056 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 86,638,949 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
150 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
Portfolio | Financial Instrument Type | Level 1 | Level 2 | Level 3 | ||||||||||
ON Risk Managed Balanced | Common Stocks** | $ | 157,994,455 | $ | — | $ | — | |||||||
U.S. Treasury Obligations | — | 49,036,534 | — | |||||||||||
Corporate Bonds** | — | 30,389,727 | — | |||||||||||
U.S. Government Agency Mortgage-Backed Securities | — | 27,201,415 | — | |||||||||||
Purchased Options | 14,167,032 | 11,342,920 | — | |||||||||||
Asset-Backed / Mortgage-Backed Securities** | — | 12,766,627 | — | |||||||||||
Bank Loans** | — | 2,957,261 | — | |||||||||||
Master Limited Partnerships** | 1,521,651 | — | — | |||||||||||
Preferred Securities** | — | 555,184 | — | |||||||||||
Money Market Funds | 39,454,855 | — | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 213,137,993 | $ | 134,249,668 | $ | — | |||||||||
|
|
|
|
|
| |||||||||
Futures Contracts | $ | 2,756,762 | $ | — | $ | — | ||||||||
|
|
|
|
|
| |||||||||
ON Conservative Model | Open-End Mutual Funds | $ | 79,029,958 | $ | — | $ | — | |||||||
|
|
|
|
|
| |||||||||
ON Moderately Conservative Model | Open-End Mutual Funds | $ | 237,292,596 | $ | — | $ | — | |||||||
|
|
|
|
|
| |||||||||
ON Balanced Model | Open-End Mutual Funds | $ | 1,147,297,906 | $ | — | $ | — | |||||||
|
|
|
|
|
| |||||||||
ON Moderate Growth Model | Open-End Mutual Funds | $ | 1,945,761,902 | $ | — | $ | — | |||||||
|
|
|
|
|
| |||||||||
ON Growth Model | Open-End Mutual Funds | $ | 424,352,128 | $ | — | $ | — | |||||||
|
|
|
|
|
|
** For detailed industry descriptions, see the accompanying Schedules of Investments.
Below is a reconciliation that details the activity of securities in Level 3 during the year ended December 31, 2018.
ON Janus Henderson | ||
Venture | ||
Beginning Balance – January 1, 2018 | $253,247 | |
Total gains or losses (realized/unrealized): | ||
Included in earnings (or changes in net assets) | 160,217 | |
Issuances | — | |
Settlements | (413,464) | |
Transfers out of Level 3 (due to availability of active market quotations or significant observable market inputs) | — | |
Transfers into Level 3 (due to lack of active market quotations or significant observable inputs) | — | |
Ending Balance – December 31, 2018 | $ — | |
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $160,217 |
Foreign Securities and Currency
The books and records of all the Portfolios are maintained in U.S. dollars. All investments and cash quoted in foreign currencies are valued daily in U.S. dollars on the basis of the foreign currency exchange rates provided by an independent source. These exchange rates are currently determined daily at 4:00 pm Eastern Time for normal trading sessions. Purchases and sales of foreign-denominated investments are recorded at rates of exchange prevailing on the respective dates of such transactions.
The Fund may not fully isolate that portion of the results of operations resulting from changes in foreign exchange rates from fluctuations arising from changes in market prices on foreign currency-denominated investments. For the portion that is isolated, amounts are reflected in the Statements of Operations as other foreign currency related transactions. However, for tax purposes, the Fund does fully isolate the effect of fluctuations in foreign exchange rates when determining the gain or loss upon sale or maturity of such investments to the extent required by federal income tax regulations.
151 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
All Portfolios of the Fund may invest in securities of foreign issuers. The ON International Equity and ON Foreign Portfolios may be invested entirely in foreign securities. Investments in securities of foreign issuers, including investments in foreign companies through the use of depositary receipts, carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that could adversely affect capital investment within those countries.
Restricted Securities
Restricted securities are those securities purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (“the 1933 Act”) or pursuant to the resale limitations provided by Rule 144A under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. 144A securities are issued by corporations without registration in reliance on 1933 Act provisions allowing for the private resale of unregistered securities to qualified institutional buyers. Section 4(a)(2) commercial paper is issued pursuant to Section 4(a)(2) of the 1933 Act which exempts an issue from registration. This paper may be used to financenon-current transactions, such as acquisitions, stock repurchase programs, and other long-term assets. Investments by a portfolio in Rule 144A and Section 4(a)(2) securities could have the effect of decreasing the liquidity of a Portfolio during any period in which qualified institutional investors were no longer interested in purchasing these securities.
Investment Transactions and Related Income
For financial reporting purposes, investment transactions are accounted for on a trade date basis. For purposes of executing separate account shareholder transactions in the normal course of business, however, the Fund’s investment transactions are recorded no later than the first calculation on the first business day following the trade date in accordance with Rule2a-4 of the 40 Act. Accordingly, differences between the net asset values for financial reporting and for executing separate account shareholder transactions may arise.
Dividend income is recognized on theex-dividend date, except in the case of those Portfolios holding foreign securities, in which dividends are recorded as soon after theex-dividend date as the Fund’s information agents become aware of such dividends. Interest income is accrued daily as earned and includes the amortization of premium and accretion of discount. Net realized gain or loss on investments and foreign exchange transactions are determined using the specific identification method.
Distributions to Shareholders and Federal Taxes
The Fund satisfies its distribution requirements, as required for each of the Portfolios to continue to qualify as a regulated investment company pursuant to Subchapter M of the Internal Revenue Code, by using consent dividends rather than cash distributions. The consent dividends, when authorized, become taxable to the Fund’s shareholders as if they were paid in cash. The Fund has the intent to continue to comply with tax provisions pertaining to regulated investment companies and make distributions of taxable income, whether by cash or consent dividends, sufficient to relieve it from substantially all federal income and excise taxes. As such, no provisions for federal income or excise taxes have been recorded. Also, notax-related interest or penalties have been incurred or recognized. The Board’s intent is that the Fund will not distribute any realized gain distributions (consent or otherwise) until any applicable capital loss carryforwards have been offset or expired.
The character of income and realized capital gains distributions are determined in accordance with federal income tax regulations and may differ from net investment income and realized gains for financial reporting purposes. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature they are reclassified within the composition of net assets; temporary differences do not require such reclassification. Distributions to shareholders that exceed taxable income and net taxable realized gains are reported as return of capital distributions.
The Fund’s management and its tax agent perform an affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether it ismore-likely-than-not (i.e. greater than50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Implementation of the evaluation included a review of tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal tax and the state of Maryland. The determination has been made that there are no uncertain tax positions that would require the Portfolios to record a tax liability or provision.
152 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
Expense Allocation
Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses that cannot be directly attributed to a Portfolio are allocated among all the benefited Portfolios on a basis of relative net assets or other appropriate method.
Foreign Withholding Taxes
Certain Portfolios in the Fund may be subject to taxes imposed by countries in which they invest with respect to their investments in issuers existing or operating in such countries. Such taxes are generally withheld based on income earned. These Portfolios accrue such taxes as the related income is earned.
TBA Commitments
To-Be-Announced (“TBA”) commitments are agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date beyond the customary settlement period for such securities. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and term and be within industry-accepted “good delivery” standards. When entering into TBA commitments, a Portfolio may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date. The ON Risk Managed Balanced Portfolio was the only Portfolio to engage in TBA transactions and did not take delivery of individual mortgage-backed securities during the year ended December 31, 2018.
Mortgage Dollar Rolls
A Portfolio may enter into a mortgage dollar roll (“MDR”) transaction, in which the Portfolio agrees to both sell and purchase a similar, but not identical, TBA mortgage-backed security with the same issuer, rate, and term on a later date at a set price. MDRs are treated as purchases and sales, which may have the effect of increasing portfolio turnover rates, and result in realized gains and losses based on the agreed-upon fixed prices. The ON Risk Managed Balanced Portfolio was the only Portfolio to engage in MDR transactions during the year ended December 31, 2018.
Bank Loans
A Portfolio may invest in bank loans, which represent an interest in amounts owned by a borrower to a syndicate of lenders. Bank loans are generallynon-investment grade and often involve borrowers whose financial condition is highly leveraged. Transactions in bank loans may settle on a delayed basis, which could result in proceeds from the sale not being readily available for a Portfolio to make additional investments or meet its redemption obligations. Bank loans are typically senior in the corporate capital structure of the borrower. Bank loans generally pay interest at variable rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”). Bank loans may involve foreign borrowers, and investments may be denominated in foreign currencies. While the Portfolios expect to invest in fully funded term loans, certain of the loans in which the Portfolios invest may include revolving loans, bridge loans, and delayed draw term loans. These investments are treated as fixed income securities for valuation purposes.
Bank loans may be acquired through either an assignment or a participation. In a participation, a Portfolio would have a contractual relationship with the lender, not with the borrower, and the lender would remain the official holder of the loan, with the participant owning the rights to the amount purchased. As such, the Portfolio would not only assume the credit risk of the borrower, but also that of the selling participant or other persons interpositioned between the Portfolio and the borrower. In contrast, in an assignment, a Portfolio would become a direct signatory to the loan and receive interest and principal payments directly from the administrative agent. The ON Risk Managed Balanced Portfolio, the only Portfolio to invest in bank loans during the year ended December 31, 2018, invested only via assignments.
New Accounting Pronouncements and Regulations
In October 2016, the Securities and Exchange Commission (the “SEC”) released its Final Rules on Investment Company Reporting Modernization. The Final Rules, which introduce two new regulatory reporting requirements for investment companies – FormN-Port and FormN-CEN – also contain amendments to RegulationS-X that require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The Fund has adopted the enhanced disclosures regarding derivatives and investments in affiliates, which had no effect on the Fund’s net assets or results of operations.
153 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
In March 2017, the Financial Accounting Standards Board (the “FASB”) issued ASU2017-08, “Premium Amortization on Purchased Callable Debt Securities”, which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Fund’s management has evaluated the impact of the amendment and has concluded that there is no significant impact on the Fund’s financial statements.
In August 2018, the FASB issued ASU2018-13 “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement“, which modifies the disclosure requirements on fair value measurements included in Topic 820, Fair Value Measurement. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Fund has early-adopted the removal of the disclosure of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, as well as the policy for timing of transfers between levels. The Fund’s management is currently evaluating the impact of the other modifications of this ASU on the Fund’s financial statements.
In November 2018, the SEC released its Final Rules on Disclosure Update and Simplification. In compliance with these Final Rules, the Fund has amended the presentation of distributable earnings on its Statements of Assets and Liabilities to show only the total distributable earnings, rather than the three components of distributable earnings. The Fund has also removed the parenthetical disclosure of undistributed net investment income on its Statements of Changes in Net Assets.
Subsequent Events
At a meeting held on January 25, 2019, the Board, including a majority of the Directors who are not “interested persons” of the Fund (the “Independent Directors”), approvedsub-advisory agreements with BlackRock Investment Management, LLC (“BlackRock”) to become thesub-adviser for each of the ON Omni, ON Bristol, ON Bryton Growth, and ON Bristol Growth Portfolios, effective February 1, 2019. The investment objective, Portfolio name, and benchmark for each of those Portfolios did not change as a result of the change insub-adviser.
The Board also approved revisions to those Portfolios’ annualized advisory andsub-advisory fee schedules, also effective February 1, 2019. The revised breakpoint schedules, based on the Portfolios’ daily net assets, are as follows:
ON Omni | ON Bristol | ON Bryton Growth | ON Bristol Growth | |||
Advisory Fees | ||||||
0.58% of first $100 million | 0.64% of first $500 million | 0.78% of first $100 million | 0.66% of first $500 million | |||
0.50% of next $150 million | 0.62% over $500 million | 0.75% of next $400 million | 0.64% over $500 million | |||
0.45% of next $250 million | 0.70% over $500 million | |||||
0.40% of next $500 million | ||||||
0.30% of next $1 billion | ||||||
0.25% over $2 billion | ||||||
Sub-advisory Fees | ||||||
0.20% of first $500 million | 0.20% of first $500 million | 0.45% of all net assets | 0.20% of first $500 million | |||
0.18% over $500 million | 0.18% over $500 million | 0.18% over $500 million |
At a meeting held on February 21, 2019, the Board, including a majority of the Directors who are not “interested persons” of the Fund (the “Independent Directors”), approved asub-advisory agreement with BlackRock Investment Management, LLC (“BlackRock”) to become thesub-adviser for the ON Equity Portfolio, effective May 1, 2019. The investment objective, name, and benchmark will remain unchanged as a result.
In connection with this change insub-adviser, the Board approved the revision of the Portfolio’s annualized advisory andsub-advisory fee schedules, also effective May 1, 2019. The revised breakpoint schedules, based on the Portfolio’s daily net assets, are as follows:
Advisory Fees |
0.64% of first $500 million 0.62% over $500 million |
Sub-advisory Fees |
0.20% of first $500 million 0.18% over $500 million |
154 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
Also on February 21, 2019, The Board approved name changes to the following Portfolios, effective May 1, 2019:
ON Omni Portfolio will become the ON BlackRock Balanced Allocation Portfolio.
ON Bristol Portfolio will become the ON BlackRock Advantage Large Cap Core Portfolio.
ON Bryton Growth Portfolio will become the ON BlackRock Advantage Small Cap Growth Portfolio.
ON Bristol Growth Portfolio will become the ON BlackRock Advantage Large Cap Growth Portfolio.
Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements, and there are no other subsequent events to report.
(3) | Related Party and Other Transactions |
The Fund has an Investment Advisory Agreement with Ohio National Investments, Inc. (“ONI”), a wholly-owned subsidiary of ONLIC. Under the terms of this agreement, ONI provides portfolio management and investment advice to the Fund and administers its operations, subject to the supervision of the Board. This agreement is renewed annually upon the approval by the Board. As compensation for its services, ONI receives advisory fees from the Fund calculated on the basis of each Portfolio’s average daily net assets and the following current schedule of Board-approved annualized fee breakpoints.
ON Equity | ON Janus Henderson Forty | ON Bristol | ||
0.79% of first $200 million | 0.80% of first $100 million | 0.80% of first $100 million | ||
0.74% of next $800 million | 0.75% of next $400 million | 0.70% of next $400 million | ||
0.70% over $1 billion | 0.70% over $500 million | 0.65% over $500 million | ||
ON Bond | ON Janus Henderson Venture | ON Bryton Growth | ||
0.60% of first $100 million | 0.80% of first $150 million | 0.85% of first $100 million | ||
0.50% of next $150 million | 0.75% of next $150 million | 0.75% of next $400 million | ||
0.45% of next $250 million | 0.70% of next $300 million | 0.70% over $500 million | ||
0.40% of next $500 million | 0.65% over $600 million | ON ICON Balanced | ||
0.30% of next $1 billion | ON Janus Henderson Enterprise1 | 0.65% of first $200 million | ||
0.25% over $2 billion | 0.85% of first $100 million | 0.60% of next $300 million | ||
ON Omni | 0.80% of next $100 million | 0.55% over $500 million | ||
0.60% of first $100 million | 0.75% of next $300 million | ON S&P MidCap 400®Index | ||
0.50% of next $150 million | 0.70% over $500 million | 0.40% of first $100 million | ||
0.45% of next $250 million | ON S&P 500®Index | 0.35% of next $150 million | ||
0.40% of next $500 million | 0.40% of first $100 million | 0.33% over $250 million | ||
0.30% of next $1 billion | 0.35% of next $150 million | ON Bristol Growth | ||
0.25% over $2 billion | 0.33% over $250 million | 0.80% of first $100 million | ||
ON Capital Appreciation | ON Federated Strategic Value Dividend | 0.70% of next $400 million | ||
0.80% of first $100 million | 0.75% of first $100 million | 0.65% over $500 million | ||
0.75% of next $300 million | 0.70% of next $400 million | ON Risk Managed Balanced | ||
0.65% of next $600 million | 0.65% over $500 million | 0.90% of first $500 million | ||
0.60% over $1 billion | ON Federated High Income Bond | 0.75% over $500 million | ||
ON International Equity | 0.75% of first $75 million | ON Conservative Model | ||
0.85% of first $100 million | 0.70% of next $75 million | 0.40% of all net assets | ||
0.80% of next $100 million | 0.65% of next $75 million | ON Moderately Conservative Model | ||
0.70% of next $800 million | 0.60% over $225 million | 0.40% of all net assets | ||
0.67% over $1 billion | ON ClearBridge Small Cap | ON Balanced Model | ||
ON Foreign | 0.85% of first $200 million | 0.40% of all net assets | ||
0.85% of first $100 million | 0.80% of next $300 million | ON Moderate Growth Model | ||
0.80% of next $100 million | 0.75% over $500 million | 0.40% of all net assets | ||
0.70% of next $800 million | ONNasdaq-100®Index | ON Growth Model | ||
0.67% over $1 billion | 0.40% of first $100 million | 0.40% of all net assets | ||
0.35% of next $150 million | ||||
0.33% over $250 million |
155 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
1 | At a meeting held on November 15, 2017, the Board, including a majority of the Directors who are not “interested persons” of the Fund, approved the replacement of the investment strategy andsub-adviser to the Portfolio. |
Effective May 1, 2018, Janus Capital Management LLC replaced the Portfolio’s previoussub-adviser, Goldman Sachs Asset Management L.P. In conjunction with the change insub-adviser and investment strategy, the name of the Portfolio was changed from Mid Cap Opportunity Portfolio to ON Janus Henderson Enterprise Portfolio. The advisory fee schedule for the Portfolio did not change.
Under the Investment Advisory Agreement, the Fund authorizes ONI to retainsub-advisers (“theSub-Advisers”) for all Portfolios of the Fund, subject to the approval of the Board. ONI has entered intosub-advisory agreements with ClearBridge Investments, LLC (“ClearBridge”), Suffolk Capital Management, LLC (“Suffolk”), Lazard Asset Management, LLC (“Lazard”), Templeton Global Advisors Limited (“Templeton”), Jennison Associates LLC (“Jennison”), Janus Capital Management LLC (“Janus”), Geode Capital Management, LLC (“Geode”), Federated Equity Management Company of Pennsylvania (“Federated Equity”), Federated Investment Management Company (“Federated Investment”), ICON Advisers, Inc. (“ICON”), and AnchorPath Financial, LLC (“AnchorPath”) to manage the investment of certain Portfolios’ assets, subject to the supervision of ONI.
As compensation for their services, theSub-Advisers receive from ONI asub-advisory fee calculated on the basis of each of the aforementioned Portfolio’s average daily net assets and the following current Board-approved schedule of annualized fee breakpoints.
ON Equity (ClearBridge) | ON Janus Henderson Venture (Janus) | ON Bryton Growth (Suffolk) | ||
0.40% of first $200 million | 0.55% of first $150 million | 0.50% of first $100 million | ||
0.38% over $200 million | 0.45% over $150 million | 0.45% of next $400 million | ||
ON Omni (Suffolk) | ON Janus Henderson Enterprise (Janus)2 | 0.40% over $500 million | ||
0.30% of first $100 million | 0.60% of first $100 million | ON ICON Balanced (ICON) | ||
0.25% of next $150 million | 0.55% of next $100 million | 0.40% of first $200 million | ||
0.225% of next $250 million | 0.50% over $200 million | 0.35% of next $300 million | ||
0.20% of next $500 million | ON S&P 500®Index (Geode)3 | 0.30% over $500 million | ||
0.15% of next $1 billion | 0.025% of first $100 million | ON S&P MidCap 400®Index (Geode)3 | ||
0.125% over 2 billion | 0.020% of next $150 million | 0.039% of first $100 million | ||
ON Capital Appreciation (Jennison) | 0.015% over $250 million | 0.038% of next $150 million | ||
0.75% of first $10 million | ON Federated Strategic Dividend Value (Federated Equity) | 0.037% of next $250 million | ||
0.50% of next $30 million | 0.50% of first $35 million | 0.036% of next $500 million | ||
0.35% of next $25 million | 0.35% of next $65 million | 0.035% over $1 billion | ||
0.25% of next $335 million | 0.25% over $100 million | ON Bristol Growth (Suffolk) | ||
0.22% of next $600 million | ON Federated High Income Bond (Federated Investment) | 0.45% of first $100 million | ||
0.20% over $1 billion | 0.50% of first $30 million | 0.40% of next $400 million | ||
ON International Equity (Lazard) | 0.40% of next $20 million | 0.35% over $500 million | ||
0.40% on first $500 Million | 0.30% of next $25 million | ON Risk Managed Balanced (Janus) | ||
0.35% on next $500 Million | 0.25% over $75 million | 0.35% of first $500 million | ||
0.32% over $1 Billion | ON ClearBridge Small Cap (ClearBridge) | 0.25% over $500 million | ||
ON Foreign (Templeton) | 0.55% of first $200 million | ON Risk Managed Balanced (AnchorPath) | ||
0.43% on first $500 Million | 0.50% over $200 million | 0.20% of first $500 million | ||
0.38% on next $500 Million | ONNasdaq-100®Index (Geode)3 | 0.15% over $500 million | ||
0.35% over $1 Billion | 0.05% of first $100 million | |||
ON Janus Henderson Forty (Janus) | 0.04% of next $150 million | |||
0.55% of first $100 million | 0.03% over $250 million | |||
0.50% of next $400 million | ON Bristol (Suffolk) | |||
0.45% over $500 million | 0.45% of first $100 million | |||
0.40% of next $400 million | ||||
0.35% over $500 million |
2 | At a meeting held on November 15, 2017, the Board, including a majority of the Directors who are not “interested persons” of the Fund, approved the replacement of the investment strategy andsub-adviser to the Portfolio. |
Effective May 1, 2018, Janus Capital Managment LLC replaced the Portfolio’s previoussub-adviser, Goldman Sachs Asset Management, L.P. In conjunction with the change insub-adviser and investment strategy, the name of the Portfolio was changed from Mid Cap Opportunity Portfolio to ON Janus Henderson Enterprise Portfolio. Thesub-advisory fee schedule for the Portfolio did not change.
156 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
3 | Thesub-advisory fees for the three Portfoliossub-advised by Geode could be impacted by an agreed-upon minimum aggregate per annum fee of $150,000. For the year ended December 31, 2018, the minimum aggregate fee had no impact on thesub-advisory fees that were calculated based on the breakpoint schedule indicated above. |
Pursuant to a service agreement among ONI, ONLIC, and the Fund, ONLIC has agreed to provide personnel and facilities to ONI on a cost-reimbursement basis. These personnel members include officers of the Fund. ONLIC also provides clerical and administrative services and such supplies and equipment as may be reasonably required in order for ONI to properly perform its advisory function pursuant to the Investment Advisory Agreement. ONLIC further performs duties to fulfill the transfer agent function on behalf of the Fund. Performance of these duties by ONLIC and availability of facilities, personnel, supplies, and equipment does not represent an expense to the Fund in excess of the advisory fees paid to ONI.
Pursuant to the Investment Advisory Agreement between ONI and the Fund, if the total expenses applicable to any Portfolio during any calendar quarter (excluding taxes, brokerage commissions, interest expense and management fees) exceed 1%, on an annualized basis, evaluated quarterly, of such Portfolio’s average daily net asset value, ONI will reimburse the Portfolio for such excess expenses. There were no expense reimbursements associated with this agreement during the year ended December 31, 2018.
For the period from May 1, 2018 to April 30, 2019, ONI has contractually agreed to reimburse the Fund to the extent that the annual ordinary operating expenses of the five ON Model Portfolios, excluding: portfolio transaction and other investment related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); fees and expenses associated with investments in derivative instruments (including for example option and swap fees and expenses); any amounts payable pursuant to a distribution or service plan adopted in accordance with Rule 12b-1 under the 40 Act; any administrative and/or shareholder servicing fees payable pursuant to a plan approved by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Fund officers and Directors and contractual indemnification of Portfolio service providers); and other expenses that the Directors agree have not been incurred in the ordinary course of the Portfolio’s business, exceed the following percentages of the average daily net assets (the “Expense Limitation Agreement.”):
Portfolio | ||||||
ON Conservative Model | 0.87 | % | ||||
ON Moderately Conservative Model | 0.92 | % | ||||
ON Balanced Model | 0.99 | % | ||||
ON Moderate Growth Model | 1.04 | % | ||||
ON Growth Model | 1.08 | % |
For the period from March 1, 2017 to April 30, 2018, ONI contractually agreed to reimburse the Fund to the extent that the annual ordinary operating expense of the five ON Model Portfolios exceeded the following percentages of the average daily net assets:
Portfolio | ||||||
ON Conservative Model | 0.82 | % | ||||
ON Moderately Conservative Model | 0.87 | % | ||||
ON Balanced Model | 0.94 | % | ||||
ON Moderate Growth Model | 0.99 | % | ||||
ON Growth Model | 1.03 | % |
For purposes of calculating the expenses subject to the Expense Limitation Agreement, the annual operating expenses are those as presented pursuant to the Fund’s prospectus requirements. The prospectus presentation of Fund expenses includes Acquired Fund Fees and Expenses (“AFFE”), which is a calculation of the indirect costs associated with the Portfolios’ underlying investments in other investment companies. The current Expense Limitation Agreement will continue at least through April 30, 2019. The Expense Limitation Agreement may only be terminated with the consent of the Board. Under the Expense Limitation Agreement, ONI is entitled to a reimbursement of the excess expense payments paid by it in the three years following the date the particular expense payment occurred, but only if such reimbursement can be achieved without exceeding the lesser of the applicable annual expense limitation in effect at the time of the expense payment or the reimbursement. There were no recorded liabilities related to this agreement at December 31, 2018.
157 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
Pursuant to the Expense Limitation Agreement, as described above, ONI reimbursed the expenses of the ON Model Portfolios as follows:
Portfolio | Year Ended December 31, 2018 | Period From March 1, 2017 (inception) to December 31, 2017 | ||||||||
ON Conservative Model | $ | 226,418 | $ | 225,670 | ||||||
ON Moderately Conservative Model | 470,818 | 546,454 | ||||||||
ON Balanced Model | 1,505,609 | 2,175,981 | ||||||||
ON Moderate Growth Model | 1,692,796 | 3,208,708 | ||||||||
ON Growth Model | 638,268 | 787,420 |
The Investment Advisory Agreement allows for a portion of the expenses related to the Fund’s Chief Compliance Officer and staff to be incurred by the Fund and paid from the Fund to the Fund’s adviser, ONI. Pursuant to the service agreement among ONI, ONLIC, and the Fund, ONLIC has provided the personnel, services, and equipment necessary for the execution of the Fund’s regulation-mandated compliance function and ONI has reimbursed ONLIC for costs allocated to the Fund. For the year ended December 31, 2018, the Fund incurred compliance expenses totaling $377,000, which are allocated to the Portfolios by equal dollar amounts. Expenses incurred by the Portfolios are reflected on the Statements of Operations as “Compliance expense”.
Each director of the Board is compensated based on an annual retainer fee of $150,000, paid quarterly. The Board chair receives an additional quarterly retainer fee of $3,750, the lead independent director of the Board receives an additional quarterly retainer fee of $3,125, and the Audit Committee chair receives an additional quarterly retainer fee of $1,250; each paid quarterly. For the year ended December 31, 2018, directors’ compensation and reimbursement of director expenses by the Portfolios of the Fund totaled $802,499.
The accounting agent and custodian for the Fund is State Street Bank (Kansas City, MO and Boston, MA). For assets held outside of the United States, State Street Bank utilizes a foreignsub-custodian network that is subject to oversight and periodic approval of the Board.
(4) | Capital Share Transactions |
Capital share transactions for the year ended December 31, 2018, and the year ended December 31, 2017, respectively, were as follows:
ON Equity | ON Bond | ON Omni | ||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||
Capital shares issued on sales | 543,340 | 10,642,597 | 2,259,416 | 11,214,295 | 333,499 | 266,862 | ||||||||||||||||||||||||
Capital shares redeemed | (7,201,001 | ) | (12,872,622 | ) | (5,188,262 | ) | (2,741,090 | ) | (508,020 | ) | (318,671 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase/(decrease) | (6,657,661 | ) | (2,230,025 | ) | (2,928,846 | ) | 8,473,205 | (174,521 | ) | (51,809 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
ON Capital Appreciation | ON International Equity | ON Foreign | ||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||
Capital shares issued on sales | 244,891 | 2,025,134 | 34,482,673 | 1,144,777 | 218,991 | 628,575 | ||||||||||||||||||||||||
Capital shares redeemed | (650,640 | ) | (4,338,944 | ) | (5,279,130 | ) | (2,568,809 | ) | (653,067 | ) | (634,666 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase/(decrease) | (405,749 | ) | (2,313,810 | ) | 29,203,543 | (1,424,032 | ) | (434,076 | ) | (6,091 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
ON Janus Henderson Forty | ON Janus Henderson Venture | ON Janus Henderson Enterprise | ||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||
Capital shares issued on sales | 5,693,993 | 709,785 | 807,578 | 6,189,442 | 1,370,764 | 174,034 | ||||||||||||||||||||||||
Capital shares redeemed | (1,615,798 | ) | (860,290 | ) | (2,464,805 | ) | (6,546,021 | ) | (640,902 | ) | (469,655 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase/(decrease) | 4,078,195 | (150,505 | ) | (1,657,227 | ) | (356,579 | ) | 729,862 | (295,621 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
158 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
ON S&P 500®Index | ON Federated Strategic Value Dividend | ON Federated High Income Bond | ||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Capital shares issued on sales | 11,443,848 | 23,454,764 | 1,908,206 | 30,871,564 | 1,170,318 | 12,486,892 | ||||||||||||||||||||||||||
Capital shares redeemed | (10,664,652 | ) | (19,338,265 | ) | (15,617,523 | ) | (27,981,608 | ) | (6,860,078 | ) | (13,338,819 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase/(decrease) | 779,196 | 4,116,499 | (13,709,317 | ) | 2,889,956 | (5,689,760 | ) | (851,927 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ON ClearBridge Small Cap | ONNasdaq-100®Index | ON Bristol | ||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Capital shares issued on sales | 230,406 | 3,994,874 | 11,099,181 | 6,783,625 | 829,082 | 6,848,458 | ||||||||||||||||||||||||||
Capital shares redeemed | (2,598,696 | ) | (4,590,517 | ) | (6,796,455 | ) | (3,749,601 | ) | (1,966,097 | ) | (8,102,589 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase/(decrease) | (2,368,290 | ) | (595,643 | ) | 4,302,726 | 3,034,024 | (1,137,015 | ) | (1,254,131 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ON Bryton Growth | ON ICON Balanced | ON S&P MidCap 400®Index | ||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Capital shares issued on sales | 232,264 | 3,478,196 | 2,389,470 | 24,217,744 | 16,253,134 | 3,514,467 | ||||||||||||||||||||||||||
Capital shares redeemed | (1,433,520 | ) | (5,814,782 | ) | (22,056,812 | ) | (28,797,829 | ) | (1,498,050 | ) | (1,597,043 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase/(decrease) | (1,201,256 | ) | (2,336,586 | ) | (19,667,342 | ) | (4,580,085 | ) | 14,755,084 | 1,917,424 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ON Bristol Growth | ON Risk Managed Balanced | ON Conservative Model | ||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2018 | Period from March 1, 2017 (inception) to December 31, 2017 | |||||||||||||||||||||||||||
Capital shares issued on sales | 682,377 | 5,831,380 | 5,049,116 | 7,019,790 | 1,569,020 | 11,598,693 | ||||||||||||||||||||||||||
Capital shares redeemed | (1,728,342 | ) | (6,841,925 | ) | (4,626,549 | ) | (5,162,331 | ) | (3,300,032 | ) | (2,132,216 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase/(decrease) | (1,045,965 | ) | (1,010,545 | ) | 422,567 | 1,857,459 | (1,731,012 | ) | 9,466,477 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ON Moderately Conservative Model | ON Balanced Model | ON Moderate Growth Model | ||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Period from March 1, 2017 (inception) to December 31, 2017 | Year Ended December 31, 2018 | Period from March 1, 2017 (inception) to December 31, 2017 | Year Ended December 31, 2018 | Period from March 1, 2017 (inception) to December 31, 2017 | |||||||||||||||||||||||||||
Capital shares issued on sales | 1,634,214 | 35,444,144 | 3,043,170 | 161,454,788 | 5,659,528 | 263,279,015 | ||||||||||||||||||||||||||
Capital shares redeemed | (8,637,861 | ) | (4,941,775 | ) | (32,518,291 | ) | (16,972,493 | ) | (49,240,271 | ) | (23,746,889 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase/(decrease) | (7,003,647 | ) | 30,502,369 | (29,475,121 | ) | 144,482,295 | (43,580,743 | ) | 239,532,126 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ON Growth Model | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | Period from March 1, 2017 (inception) to December 31, 2017 | |||||||||||||||||||||||||||||||
Capital shares issued on sales | 3,385,893 | 53,788,591 | ||||||||||||||||||||||||||||||
Capital shares redeemed | (9,165,822 | ) | (5,012,375 | ) | ||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||
Net increase/(decrease) | (5,779,929 | ) | 48,776,216 | |||||||||||||||||||||||||||||
|
|
|
|
159 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
(5) | Investment Transactions |
Cost of purchases and proceeds from sales of investments (excluding short-term and government securities) for the year ended December 31, 2018 were as follows:
ON Equity | ON Bond | ON Omni | ON Capital Appreciation | ON International Equity | |||||||||||||||||||||
Cost of purchases | $ | 108,965,617 | $ | 112,686,165 | $ | 146,705,632 | $63,063,459 | $ | 635,414,556 | ||||||||||||||||
Proceeds from sales | $ | 408,291,802 | $ | 130,926,995 | $ | 150,310,726 | $84,448,870 | $ | 193,227,742 | ||||||||||||||||
ON Foreign | ON Janus Henderson Forty | ON Janus Henderson Venture | ON Janus Henderson Enterprise | ON S&P 500® Index | |||||||||||||||||||||
Cost of purchases | $15,198,532 | $ | 147,657,378 | $ | 84,867,989 | $131,164,590 | $ | 261,157,575 | |||||||||||||||||
Proceeds from sales | $27,124,273 | $ | 56,145,136 | $ | 142,086,563 | $100,797,101 | $ | 212,697,167 | |||||||||||||||||
ON Federated Strategic Value Dividend | ON Federated High Income Bond | ON ClearBridge Small Cap | ON Nasdaq-100® Index | ON Bristol | |||||||||||||||||||||
Cost of purchases | $ | 79,249,143 | $ | 36,848,773 | $ | 93,764,085 | $157,601,179 | $ | 539,130,159 | ||||||||||||||||
Proceeds from sales | $ | 288,390,568 | $ | 124,205,928 | $ | 237,767,338 | $ 75,188,539 | $ | 573,290,347 | ||||||||||||||||
ON Bryton Growth | ON ICON Balanced | ON S&P MidCap 400® Index | ON Bristol Growth | ON Risk Managed Balanced | |||||||||||||||||||||
Cost of purchases | $ | 97,049,352 | $ | 248,500,982 | $ | 310,727,514 | $310,454,290 | $ | 236,762,266 | ||||||||||||||||
Proceeds from sales | $ | 131,126,546 | $ | 558,448,443 | $ | 40,306,960 | $333,660,228 | $ | 244,454,131 | ||||||||||||||||
ON Conservative Model | ON Moderately Conservative Model | ON Balanced Model | ON Moderate Growth Model | ON Growth Model | |||||||||||||||||||||
Cost of purchases | $31,174,919 | $ | 108,653,441 | $ | 515,607,753 | $ | 1,157,718,720 | $ | 318,203,194 | ||||||||||||||||
Proceeds from sales | $47,574,822 | $ | 177,860,885 | $ | 813,119,023 | $ | 1,608,490,113 | $ | 377,473,770 |
Cost of purchases and proceeds from sales of government securities for the year ended December 31, 2018 were as follows:
ON Bond | ON Omni | ON ICON Balanced | ON Risk Managed Balanced | |||||||||||||||||
Cost of purchases | $ | 3,690,781 | $ | 928,039 | $ | 84,352,874 | $ | 184,772,487 | ||||||||||||
Proceeds from sales | $ | 12,912,051 | $ | 1,243,699 | $ | 185,848,407 | $ | 163,259,339 |
(6) | Financial Instruments |
The Portfolios may trade in financial instruments withoff-balance sheet risk for hedging purposes or, otherwise, in accordance with stated investing objectives. These financial instruments may include options, futures, and foreign currency contracts that may involve, to a varying degree, elements of risk in excess of the amounts recognized on financial statements.
Options |
A Portfolio may buy and write (i.e., sell) call and put options. In writing call options, the Portfolio gives the purchaser of the call option the right to purchase the underlying securities from the Portfolio at a specified “exercise” price at any time prior to the expiration of the option, normally within nine months. A Portfolio writes a covered call option when it owns the underlying securities and an uncovered call option when it does not. In purchasing put options, a Portfolio pays the seller of the put option a premium for the right of the Portfolio to sell the underlying securities to the seller at a specified exercise price prior to the expiration of the option. When a Portfolio sells a put option, it has the obligation to buy, and the purchaser of the put the right to sell, the underlying security at the exercise price during the option period. Whenever a Portfolio has a written covered call option outstanding, the underlying securities will be segregated by the Custodian and held in an escrow account to assure that such securities will be delivered to the option holder if the option is exercised. While the underlying securities are subject to the option, the Portfolio remains the record owner of the securities, entitling it to receive dividends and to exercise any voting rights. Whenever a Portfolio has a written uncovered call option outstanding, it will segregate with the Custodian cash or liquid assets that, when added to the amounts
160 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
deposited with the broker as margin, equal to the market value of the securities underlying the call option (but not less than the exercise price of the call option). To cover a written put option, the Portfolio writing the option deposits cash or liquid securities in a segregated account at the Custodian. In order to terminate its position as the writer or the purchaser of an option, the Portfolio may enter into a “closing” transaction, which is the purchase (if the Portfolio has written the option) or sale (if the Portfolio is the purchaser of the option) of an option on the same underlying securities and having the same exercise price and expiration date as the option previously written or purchased by the Portfolio.
When a Portfolio writes a put or call option, an amount equal to the premium received is included on the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequentlymarked-to-market to reflect the current market value of the option. Such liability is subject to off balance sheet risks to the extent of any future increases in market value of the written options. If an option expires on its stipulated expiration date or if the Portfolio enters into a closing purchase transaction, a gain or loss is realized. If a written call option on an individual security is exercised, a gain or loss is realized for the sale of the underlying security, and the proceeds from the sale are increased by the premium originally received. If a written call option on a securities index is exercised, a gain or loss is realized as determined by the premium originally received, the exercise price and the market value of the index. If a written put option on an individual security is exercised, the cost of the security acquired is decreased by the premium originally received. When a Portfolio purchases a put or call option, an amount equal to the premium paid is included on the Portfolio’s Statement of Assets and Liabilities as an investment, and is subsequentlymarked-to-market to reflect the current market value of the option. If an option expires on the stipulated expiration date or if the Portfolio enters into a closing sale transaction, a gain or loss is realized. If a Portfolio exercises a call option on an individual security, the cost of the security acquired is increased by the premium paid for the call. If the Portfolio exercises a put option on an individual security, a gain or loss is realized from the sale of the underlying security, and the proceeds from such a sale are decreased by the premium originally paid. If the Portfolio exercises a put option on a security index, a gain or loss is realized as determined by the premium originally paid, the exercise price and the market value of the index.
The ON ICON Balanced Portfolio held and purchased put options during the year ended December 31, 2018. These instruments were used by the Portfolio to provide a hedge against equity price risk. During a period in which the prices of the Portfolio’s common stocks may decline, these instruments are designed to increase in value, thus providing price accumulation gains that partially offset the price accumulation losses of the common stocks in the Portfolio. Transactions involving purchased options by the ON ICON Balanced Portfolio for the year ended December 31, 2018 were: Cost of purchases: $2.0 million, Proceeds from sales: $0.8 million.
The ON Risk Managed Balanced Portfolio also purchased call and put options associated with the S&P 500 Index or related exchange traded fund during the year ended December 31, 2018. These instruments were used by the Risk Management Component of the Portfolio to provide for the Portfolio’s stated risk management strategy. Transactions involving purchased options by the ON Risk Managed Balanced Portfolio for the year ended December 31, 2018 were: Cost of purchases: $28.8 million, Proceeds from sales: $26.5 million.
Written and purchased options arenon-income producing securities.
Futures Contracts
A Portfolio may buy or sell two kinds of financial futures contracts: stock index futures contracts and interest rate futures contracts. Stock index futures contracts are contracts developed by and traded on national commodity exchanges whereby the buyer will, on a specified future date, pay or receive a final cash payment equal to the difference between the actual value of the stock index on the last day of the contract and the value of the stock index established by the contract multiplied by the specific dollar amount set by the exchange. Futures contracts may be based on broad-based stock indices such as the S&P 500 Index or on narrow-based stock indices. A particular index will be selected according to the Adviser’s investment strategy for the particular Portfolio. An interest rate futures contract is an agreement whereby one party agrees to sell and another party agrees to purchase a specified amount of a specified financial instrument (debt security) at a specified price at a specified date, time and place. Although interest rate futures contracts typically require actual future delivery of and payment for financial instruments, the contracts are usually closed out before the delivery date. A public market exists in interest rate futures contracts covering primarily the following financial instruments: U.S. Treasury bonds; U.S. Treasury notes; Government National Mortgage Association (“GNMA”) modified pass-through mortgage-backed securities; three-month U.S. Treasury bills;90-day commercial paper; bank certificates of deposit; and Eurodollar certificates of deposit. U.S. futures contracts are traded on exchanges which have been designated “contract markets” by the Commodities Futures Trading Commission (“CFTC”) and must be executed through a futures commission merchant (“FCM”), or brokerage firm, which is a member of the relevant contract market. It is expected that futures contracts trading in additional financial instruments will be authorized.
161 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
The Fund, on behalf of each Portfolio, has filed with the National Futures Association, a notice claiming an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act, as amended, and the rules of the CFTC promulgated thereunder, with respect to each Portfolio’s operation. Accordingly, the Portfolios are not subject to registration or regulation as a commodity pool operator.
The buyer or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, both the buyer and seller are required to deposit “initial margin” for the benefit of the broker when the contract is entered into. Initial margin deposits are equal to a percentage of the contract’s value, as set by the exchange on which the contract is traded, and are similar to good faith deposits or performance bonds.
Unlike margin extended by a securities broker, initial margin payments do not constitute purchasing securities on margin for purposes of a Portfolio’s investment limitations. A Portfolio, its futures commission merchant and the Custodian retain control of the initial margin until the contract is liquidated. If the value of either party’s position declines, the party on the side of the declining position will be required to make additional “variation margin” payments to settle the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. Variation margin is recognized as a receivable and/or payable for variation margin on futures contracts on the Statement of Assets and Liabilities. In the event of the bankruptcy of the FCM that holds margin on behalf of a Portfolio, the Portfolio may be entitled to return of margin owed to the Portfolio only in proportion to the amount received by the FCM’s other customers. ONI and theSub-Advisers will attempt to minimize this risk by carefully monitoring the creditworthiness of the FCMs with which the Portfolios do business. In addition to the margin restrictions discussed above, transactions in futures contracts and options on futures contracts may involve the segregation of funds pursuant to requirements imposed by the SEC. Under those requirements, where a Portfolio has a long position in a futures contract or sells a put option, it will be required to establish a segregated account (not with an FCM or broker) containing cash or certain liquid assets equal to the purchase price of the contract or the exercise price of the option (less any margin on deposit). For a short position in futures contacts held by a Portfolio or call options sold by a Portfolio, those requirements mandate the establishment of a segregated account (not with a futures commission merchant or broker) containing cash or certain liquid assets that, when added to the amounts deposited as margin, equal the market value of the instruments underlying the futures contracts or call options. However, segregation of assets is not required if a Portfolio “covers” its position.
Portions of the ON S&P 500® Index, ONNasdaq-100® Index, and ON S&P MidCap 400® Index Portfolios’ cash holdings, as noted on those Portfolios’ Schedules of Investments, were pledged at December 31, 2018 as collateral for the Portfolios’ futures contracts. The futures contracts were used by the Portfolios for the purpose of gaining equity exposure for cash and cash equivalents, thereby seeking to lessen a performance difference between the Portfolios and their respective benchmark indices. There were other futures contracts that were executed and closed in the Portfolios during the year ended December 31, 2018. Those contracts were executed for similar purposes as the contracts outstanding at December 31, 2018. For the year ended December 31, 2018, the notional values of futures contracts opened and closed prior to contract settlement date by the ON S&P 500® Index Portfolio were $255.8 million and $253.8 million, respectively. For the year ended December 31, 2018, the notional values of futures contracts opened and closed prior to contract settlement date by the ONNasdaq-100® Index Portfolio were $73.6 million and $74.4 million, respectively. For the year ended December 31, 2018, the notional values of futures contracts opened and closed prior to contract settlement date by the ON S&P MidCap 400® Index Portfolio were $8.0 million and $8.4 million, respectively.
Portions of the ON Risk Managed Balanced Portfolio’s securities and cash holdings, as noted on the Portfolio’s Schedule of Investments, were pledged at December 31, 2018 as collateral for the Portfolio’s futures contracts. These futures contracts were used by the Portfolio to provide for the Portfolio’s stated risk management strategy. There were other index futures contracts that were executed and closed in the ON Risk Managed Balanced Portfolio during the year ended December 31, 2018. Those contracts were executed for similar purposes as the contracts outstanding at December 31, 2018. For the year ended December 31, 2018, the notional values of futures contracts opened and closed prior to contract settlement date by the Portfolio were $1,292.1 million and $1,279.4 million, respectively.
162 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
The values and financial statement effects of derivative instruments that were not accounted for as hedging instruments as of, and for, the year ended December 31, 2018, were as follows:
Portfolio | Instrument | Primary Risk Type | Value- Asset Derivatives | Value- Liability Derivatives | Location on Statements of Assets and Liabilities | |||||||||
ON S&P 500®Index | Futures contracts | Equity price | $ | 9,143,980 | $ | 9,103,880 | (1) | |||||||
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|
|
| |||||||||||
ONNasdaq-100®Index | Futures contracts | Equity price | 1,013,320 | 1,006,669 | (1) | |||||||||
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| |||||||||||
ON S&P MidCap 400®Index | Futures contracts | Equity price | 332,440 | 334,356 | (1) | |||||||||
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| |||||||||||
ON Risk Managed Balanced | Futures contracts | Equity price | 226,553,260 | 223,796,498 | (1) | |||||||||
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| |||||||||||
Purchased options | Equity price | 25,509,952 | — | (2) | ||||||||||
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|
|
(1) | Total distributable earnings. The amounts represent the cumulative appreciation (depreciation) of these futures contracts as reported in the Statements of Assets and Liabilities. Only the current day’s variation margin, if any, is reported within the Statements of Assets and Liabilities as receivable (payable) for variation margin on futures contracts. |
(2) | Investments in securities of unaffiliated issuers, at value. |
Portfolio | Instrument | Risk Type | Realized Gain (Loss) on Derivatives Recognized in Income | Change in Unrealized Appreciation/ Depreciation on Derivatives Recognized in Income | Location on Statements of Operations | ||||||||||||||
ON S&P 500®Index | Futures contracts | Equity price | $ | (575,561 | ) | $ | 56,528 | (1),(2) | |||||||||||
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| ||||||||||||||||
ONNasdaq-100®Index | Futures contracts | Equity price | 20,238 | 692 | (1),(2) | ||||||||||||||
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| ||||||||||||||||
ON ICON Balanced | Purchased options | Equity price | (1,842,234 | ) | 591,246 | (3),(4) | |||||||||||||
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| ||||||||||||||||
ON S&P MidCap 400®Index | Futures contracts | Equity price | (124,393 | ) | (9,669 | ) | (1),(2) | ||||||||||||
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| ||||||||||||||||
ON Risk Managed Balanced | Futures contracts | Equity price | (6,518,525 | ) | 3,601,820 | (1),(2) | |||||||||||||
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| ||||||||||||||||
Purchased options | Equity price | 2,322,286 | (2,945,694 | ) | (3),(4) | ||||||||||||||
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|
(1) | Net realized gain (loss) on futures contracts. |
(2) | Change in unrealized appreciation/depreciation on futures contracts. |
(3) | Net realized gain (loss) on investments in securities of unaffiliated issuers. |
(4) | Change in unrealized appreciation/depreciation on investments in securities of unaffiliated issuers. |
The Portfolios may enter into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) or similar agreements with their derivative contract counterparties whereby the Portfolios may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables and create one single net payment. For financial reporting purposes, the Portfolios offset derivative assets and liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities. At December 31, 2018, there were no outstanding derivative transactions subject to netting arrangements.
163 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
(7) | Federal Income Tax Information |
The following information is presented on a federal income tax basis. Differences between amounts for financial statements and federal income tax purposes are primarily due to timing and character differences in recognizing certain gains and losses on investment transactions. Permanent differences between financial statement and federal income tax reporting are reclassified within the capital accounts based on their federal income tax treatment. Temporary differences do not require reclassification. Reclassifications related to permanent differences relate principally to consent dividends, foreign currency gains and losses, net investment losses, and distributions from real estate investment trusts and closed end mutual funds.
At December 31, 2018, the components of accumulated earnings (deficit) on a tax basis were as follows:
Portfolio | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains (Losses) | Accumulated Earnings | Accumulated Capital and Other Losses | Unrealized Appreciation (Depreciation)(1) | Unrealized Appreciation (Depreciation) on Foreign Currency and Futures | Total Accumulated Earnings (Deficit) | |||||||||||||||
ON Equity | $ — | $ — | $ — | $ | — | $ | (6,839,994 | ) | $ | 419 | $ | (6,839,575 | ) | |||||||||
ON Bond | — | — | — | (1,352,096 | ) | (12,580,235 | ) | — | (13,932,331 | ) | ||||||||||||
ON Omni | — | — | — | — | (7,420,375 | ) | — | (7,420,375 | ) | |||||||||||||
ON Capital Appreciation | — | — | — | — | (8,673,959 | ) | 141 | (8,673,818 | ) | |||||||||||||
ON International Equity | — | — | — | (12,495,862 | ) | (64,996,155 | ) | 1,650 | (77,490,367 | ) | ||||||||||||
ON Foreign | — | — | — | — | (8,971,339 | ) | (335 | ) | (8,971,674 | ) | ||||||||||||
ON Janus Henderson Forty | — | — | — | — | (2,767,762 | ) | — | (2,767,762 | ) | |||||||||||||
ON Janus Henderson Venture | — | — | — | — | 19,959,759 | 323 | 19,960,082 | |||||||||||||||
ON Janus Henderson Enterprise | — | — | — | — | (8,970,829 | ) | 7 | (8,970,822 | ) | |||||||||||||
ON S&P 500®Index | — | — | — | — | 100,560,346 | — | 100,560,346 | |||||||||||||||
ON Federated Strategic Value Dividend | — | — | — | — | (35,354,389 | ) | 6,672 | (35,347,717 | ) | |||||||||||||
ON Federated High Income Bond | — | — | — | (4,771,655 | ) | (18,163,371 | ) | — | (22,935,026 | ) | ||||||||||||
ON ClearBridge Small Cap | — | — | — | — | (10,964,253 | ) | — | (10,964,253 | ) | |||||||||||||
ONNasdaq-100®Index | — | — | — | — | 43,167,716 | — | 43,167,716 | |||||||||||||||
ON Bristol | — | — | — | — | (25,720,995 | ) | — | (25,720,995 | ) | |||||||||||||
ON Bryton Growth | — | — | — | — | (4,818,688 | ) | — | (4,818,688 | ) | |||||||||||||
ON ICON Balanced | — | — | — | — | (17,678,959 | ) | (15 | ) | (17,678,974 | ) | ||||||||||||
ON S&P MidCap 400®Index | — | — | — | — | (51,201,535 | ) | — | (51,201,535 | ) | |||||||||||||
ON Bristol Growth | — | — | — | — | (11,533,900 | ) | — | (11,533,900 | ) | |||||||||||||
ON Risk Managed Balanced | — | — | — | — | 21,239,232 | — | 21,239,232 | |||||||||||||||
ON Conservative Model | — | — | — | — | (5,649,113 | ) | — | (5,649,113 | ) | |||||||||||||
ON Moderately Conservative Model | — | — | — | — | (25,873,979 | ) | — | (25,873,979 | ) | |||||||||||||
ON Balanced Model | — | — | — | — | (164,596,016 | ) | — | (164,596,016 | ) | |||||||||||||
ON Moderate Growth Model | — | — | — | — | (362,445,946 | ) | — | (362,445,946 | ) | |||||||||||||
ON Growth Model | — | — | — | — | (90,326,918 | ) | — | (90,326,918 | ) |
(1) | The differences between book-basis andtax-basis unrealized appreciation/(depreciation) are attributed primarily to tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains/(losses) on certain instruments. |
164 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
For federal income tax purposes, the following Portfolios had capital loss carryforwards as of December 31, 2018 that are available to offset future realized gains, if any:
No | No | |||||||||||
Total Loss | Expiration | Expiration | ||||||||||
Portfolio | Carryforward | Short Term | Long Term | |||||||||
ON Bond Portfolio | $ | 1,352,096 | $ | 1,193,752 | $ | 158,344 | ||||||
ON International Equity Portfolio | 12,495,862 | 12,495,862 | — | |||||||||
ON Federated High Income Bond Portfolio | 4,771,655 | 89,495 | 4,682,160 |
The cost basis for federal income tax purposes may differ from the cost basis for financial reporting purposes. The table below details the unrealized appreciation (depreciation) and aggregate cost of investments at December 31, 2018 for federal income tax purposes.
ON Capital | ON International | |||||||||||||||||||||||||||||
ON Equity | ON Bond | ON Omni | Appreciation | Equity | ON Foreign | |||||||||||||||||||||||||
Gross unrealized: | ||||||||||||||||||||||||||||||
Appreciation | $ | 24,194,591 | $ | 489,141 | $ | 905,584 | $ | 6,491,048 | $ | 8,687,136 | $ | 838,894 | ||||||||||||||||||
Depreciation | (31,034,585 | ) | (13,069,376 | ) | (8,325,959 | ) | (15,165,007 | ) | (73,683,291 | ) | (9,810,233 | ) | ||||||||||||||||||
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| |||||||||||||||||||
Net unrealized appreciation (depreciation) | $ | (6,839,994 | ) | $ | (12,580,235 | ) | $ | (7,420,375 | ) | $ | (8,673,959 | ) | $ | (64,996,155 | ) | $ | (8,971,339 | ) | ||||||||||||
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| |||||||||||||||||||
Aggregate cost of investments: | $ | 243,913,991 | $ | 270,678,259 | $ | 60,578,078 | $ | 98,926,046 | $ | 583,730,178 | $ | 64,007,739 | ||||||||||||||||||
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ON Janus | ON Janus | ON Federated | ON Federated | |||||||||||||||||||||||||||
ON Janus | Henderson | Henderson | ON S&P 500® | Strategic Value | High Income | |||||||||||||||||||||||||
Henderson Forty | Venture | Enterprise | Index | Dividend | Bond | |||||||||||||||||||||||||
Gross unrealized: | ||||||||||||||||||||||||||||||
Appreciation | $ | 8,958,864 | $ | 39,044,736 | $ | 3,160,463 | $ | 164,029,555 | $ | 11,114,765 | $ | 379,587 | ||||||||||||||||||
Depreciation | (11,726,626 | ) | (19,084,977 | ) | (12,131,292 | ) | (63,469,209 | ) | (46,469,154 | ) | (18,542,958 | ) | ||||||||||||||||||
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| |||||||||||||||||||
Net unrealized appreciation (depreciation) | $ | (2,767,762 | ) | $ | 19,959,759 | $ | (8,970,829 | ) | $ | 100,560,346 | $ | (35,354,389 | ) | $ | (18,163,371 | ) | ||||||||||||||
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| |||||||||||||||||||
Aggregate cost of investments: | $ | 153,386,535 | $ | 187,135,033 | $ | 111,713,468 | $ | 1,010,502,773 | $ | 355,444,752 | $ | 217,504,031 | ||||||||||||||||||
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ON ClearBridge | ON Nasdaq-100® | ON ICON | ON S&P MidCap | |||||||||||||||||||||||||||
Small Cap | Index | ON Bristol | ON Bryton Growth | Balanced | 400®Index | |||||||||||||||||||||||||
Gross unrealized: | ||||||||||||||||||||||||||||||
Appreciation | $ | 15,961,251 | $ | 53,890,168 | $ | 2,832,436 | $ | 531,410 | $ | 30,555,696 | $ | 2,823,418 | ||||||||||||||||||
Depreciation | (26,925,504 | ) | (10,722,452 | ) | (28,553,431 | ) | (5,350,098 | ) | (48,234,655 | ) | (54,024,953 | ) | ||||||||||||||||||
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|
|
| |||||||||||||||||||
Net unrealized appreciation (depreciation) | $ | (10,964,253 | ) | $ | 43,167,716 | $ | (25,720,995 | ) | $ | (4,818,688 | ) | $ | (17,678,959 | ) | $ | (51,201,535 | ) | |||||||||||||
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| |||||||||||||||||||
Aggregate cost of investments: | $ | 136,796,888 | $ | 283,389,897 | $ | 177,772,358 | $ | 27,666,574 | $ | 483,985,249 | $ | 357,656,305 | ||||||||||||||||||
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| |||||||||||||||||||
ON Moderately | ||||||||||||||||||||||||||||||
ON Bristol | ON Risk Managed | ON Conservative | Conservative | ON Balanced | ON Moderate | |||||||||||||||||||||||||
Growth | Balanced | Model | Model | Model | Growth Model | |||||||||||||||||||||||||
Gross unrealized: | ||||||||||||||||||||||||||||||
Appreciation | $ | 2,851,461 | $ | 37,121,661 | $ | — | $ | 2,754 | $ | 758,080 | $ | 5,371,596 | ||||||||||||||||||
Depreciation | (14,385,361 | ) | (15,882,429 | ) | (5,649,113 | ) | (25,876,733 | ) | (165,354,096 | ) | (367,817,542 | ) | ||||||||||||||||||
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|
|
|
|
|
| |||||||||||||||||||
Net unrealized appreciation (depreciation) | $ | (11,533,900 | ) | $ | 21,239,232 | $ | (5,649,113 | ) | $ | (25,873,979 | ) | $ | (164,596,016 | ) | $ | (362,445,946 | ) | |||||||||||||
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| |||||||||||||||||||
Aggregate cost of investments: | $ | 98,172,849 | $ | 328,905,191 | $ | 84,679,071 | $ | 263,166,575 | $ | 1,311,893,922 | $ | 2,308,207,848 | ||||||||||||||||||
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165 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
ON Growth Model | ||||
Gross unrealized: | ||||
Appreciation | $ | 1,059,994 | ||
Depreciation | (91,386,912 | ) | ||
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| |||
Net unrealized appreciation (depreciation) | $ | (90,326,918 | ) | |
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Aggregate cost of investments: | $ | 514,679,046 | ||
|
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There were no cash distributions paid to shareholders for the years ended December 31, 2018, as the tax liability of the Portfolios is intended to be passed on to shareholders through consent dividends.
The tax character of consent dividend distributions recognized, as well as other reclassifications of capital accounts due to permanent tax differences for the year ended December 31, 2018, were as follows (in aggregate):
Consent Dividend Distribution Reclassifications | Other Reclassifications | |||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Net | Undistributed | Accumulated | ||||||||||||||||||||||
Ordinary | Long-Term | Total | Net Investment | Net Realized | ||||||||||||||||||||
Portfolio | Income* | Capital Gains | Distribution | Paid-in Capital | Income | Gain (Loss) | ||||||||||||||||||
ON Equity | $ | 12,595,709 | $ 27,021,135 | $ | 39,616,844 | $ | (686,225 | ) | $ | (40,273 | ) | $ | 726,498 | |||||||||||
ON Bond | 9,665,092 | — | 9,665,092 | — | (496 | ) | 496 | |||||||||||||||||
ON Omni | 1,289,971 | 4,474,333 | 5,764,304 | — | — | — | ||||||||||||||||||
ON Capital Appreciation | 3,678,537 | 10,039,528 | 13,718,065 | (192,879 | ) | 8,813 | 184,066 | |||||||||||||||||
ON International Equity | 9,257,690 | — | 9,257,690 | 2 | 59,421 | (59,423 | ) | |||||||||||||||||
ON Foreign | 1,488,810 | 279,878 | 1,768,688 | (5 | ) | 184,447 | (184,442 | ) | ||||||||||||||||
ON Janus Henderson Forty | — | 8,957,000 | 8,957,000 | (181,772 | ) | 181,828 | (56 | ) | ||||||||||||||||
ON Janus Henderson Venture | 2,608,972 | 33,102,527 | 35,711,499 | 67,081 | 539,209 | (606,290 | ) | |||||||||||||||||
ON Janus Henderson Enterprise | 4,192,386 | 15,801,567 | 19,993,953 | (114 | ) | (9,865 | ) | 9,979 | ||||||||||||||||
ON S&P 500®Index | 19,284,882 | 125,907,062 | 145,191,944 | (86,284 | ) | (227,548 | ) | 313,832 | ||||||||||||||||
ON Federated Strategic Value Dividend | 18,768,679 | 13,760,575 | 32,529,254 | 19,769 | (621,837 | ) | 602,068 | |||||||||||||||||
ON Federated High Income Bond | 15,228,668 | — | 15,228,668 | — | — | — | ||||||||||||||||||
ON ClearBridge Small Cap | 3,117,417 | 34,831,372 | 37,948,789 | (248,265 | ) | (90,608 | ) | 338,873 | ||||||||||||||||
ONNasdaq-100®Index | 2,359,160 | 47,353,899 | 49,713,059 | (71,657 | ) | — | 71,657 | |||||||||||||||||
ON Bristol | 4,910,356 | 18,969,467 | 23,879,823 | 1 | — | (1 | ) | |||||||||||||||||
ON Bryton Growth | 8,402,902 | 502,874 | 8,905,776 | (2,823 | ) | 278,025 | (275,202 | ) | ||||||||||||||||
ON ICON Balanced | 11,809,619 | 28,500,295 | 40,309,914 | (3 | ) | 14,479 | (14,476 | ) | ||||||||||||||||
ON S&P MidCap 400®Index | 2,531,429 | 4,001,743 | 6,533,172 | 2,133 | (256,283 | ) | 254,150 | |||||||||||||||||
ON Bristol Growth | 3,352,103 | 13,634,538 | 16,986,641 | — | — | — | ||||||||||||||||||
ON Risk Managed Balanced | 4,454,280 | 7,507,812 | 11,962,092 | (39,737 | ) | (44,939 | ) | 84,676 | ||||||||||||||||
ON Conservative Model | 2,803,756 | 1,674,556 | 4,478,312 | (257 | ) | 969,029 | (968,772 | ) | ||||||||||||||||
ON Moderately Conservative Model | 8,282,931 | 9,026,959 | 17,309,890 | (27,633 | ) | 3,623,507 | (3,595,874 | ) | ||||||||||||||||
ON Balanced Model | 37,204,396 | 74,393,236 | 111,597,632 | (176,215 | ) | 18,222,695 | (18,046,480 | ) | ||||||||||||||||
ON Moderate Growth Model | 59,085,158 | 159,064,320 | 218,149,478 | (478,754 | ) | 33,013,766 | (32,535,012 | ) | ||||||||||||||||
ON Growth Model | 11,928,158 | 42,641,392 | 54,569,550 | (117,654 | ) | 7,135,513 | (7,017,859 | ) |
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
166 | (continued) |
Ohio National Fund, Inc.
| ||
Notes to Financial Statements (Continued) | December 31, 2018 |
(8) | Legal Matters |
In December 2007, the S&P 500®Index and Strategic Value Portfolios, shareholders of the Tribune Company, participated in a cash out merger in which shareholders received $34 per share of consideration. The value of the proceeds received by the S&P 500®Index and Strategic Value Portfolios was $37,910 and $384,200, respectively. The company subsequently filed for bankruptcy and several legal complaints have been initiated by groups of Tribune Company creditors seeking to recover, or clawback, proceeds received by shareholders based on fraudulent transfer claims (the “Tribune Bankruptcy”).
The first action, Official Committee of Unsecured Creditors of Tribune Company v. FitzSimons, et. al. (“FitzSimons”) was initiated on November 1, 2010 in the U.S. Bankruptcy Court for the District of Delaware. As a result of these proceedings, the Court agreed to allow individual creditors to file similar complaints in U.S. state courts. The Fund is specifically named in a complaint in the U.S. District Court, Southern District of Ohio, Western Division, Deutsche Bank Trust Company Americas, et. al. v. American Electric Power, et. al., that was initiated in June of 2011. The Fund, along with the Strategic Value Portfolio, is also named in a similar complaint in the U.S. District Court, Eastern District of Pennsylvania, Deutsche Bank Trust Company Americas, et. al. v. Ametek Inc. Employees Master Retirement Trust, et. al. These Tribune litigation actions have been consolidated into a single Multidistrict Litigation (“MDL”) in the U.S. District Court, Southern District of New York (“District Court”).
Thereafter, certain defendants in the MDL, including the Fund, filed various motions to dismiss. The District Court dismissed the Creditor Actions on September 23, 2013, holding that the plaintiffs could not pursue their claims so long as the Trustee pursued essentially the same claims in his action. On December 20, 2013, the plaintiffs appealed the dismissal to the Second Circuit Court of Appeals. On March 29, 2016, the Court of Appeals affirmed the dismissal and rejected the plaintiffs’ appeal. On September 9, 2016, plaintiffs filed a petition for writ of certiorari in the Supreme Court and the defendants opposed it. The Supreme Court has not yet decided whether to grant certiorari. On April 3, 2018, the Supreme Court issued a “Statement” from two justices announcing that consideration of the petition for certiorari would be deferred for an undetermined period of time to “allow” the Court of Appeals or the District Court to consider, among other things, whether the Court of Appeal’s decision should be vacated as a result of the Supreme Court’s recent decision in Merit Management Group, LP v. FTI Consulting, Inc. On May 15, 2018, the Second Circuit recalled the mandate on its earlier decision for further panel review. The Second Circuit has not yet provided any specific timing for, or guidance on, next steps.
In the Trustee Action, in 2014, various shareholder defendants filed a motion to dismiss the intentional fraudulent transfer claims. On January 9, 2017, the Court granted the motion to dismiss the Trustee’s actual fraudulent conveyance claim. The plaintiff will almost certainly appeal to the Second Circuit Court of Appeals. Because of a procedural issue, however, the plaintiff cannot automatically appeal the decision, but must first obtain permission from the District Court. On January 14, 2019, the District Court held a status conference during which it indicated that the plaintiff would be allowed to file a motion seeking reconsideration of the prior dismissal of the intentional fraudulent transfer claims; the Trustee has not yet filed its motion. In the meantime, the parties are discussing a potential mediation. If that fails, the remaining parties involved will engage in limited discovery that should not impact the shareholder defendants. Under the District Court’s discovery plan, the shareholder defendants should be treated as third parties for discovery purposes.
The outcome of these proceedings cannot be predicted. Management of the Fund continues to assess litigation matters and any offers of settlement.
167 |
Report of Independent Registered Public Accounting Firm |
To the Shareholders and Board of Directors
Ohio National Fund, Inc.:
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the ON Equity Portfolio (formerly Equity Portfolio), ON Bond Portfolio (formerly Bond Portfolio), ON Omni Portfolio (formerly Omni Portfolio), ON Capital Appreciation Portfolio (formerly Capital Appreciation Portfolio), ON International Equity Portfolio, ON Foreign Portfolio, ON Janus Henderson Forty Portfolio (formerly Aggressive Growth Portfolio), ON Janus Henderson Venture Portfolio (formerly Small Cap Growth Portfolio), ON Janus Henderson Enterprise Portfolio (formerly Mid Cap Opportunity Portfolio), ON S&P 500 Index Portfolio (formerly S&P 500 Index Portfolio), ON Federated Strategic Value Dividend Portfolio (formerly Strategic Value Portfolio), ON Federated High Income Bond Portfolio (formerly High Income Bond Portfolio), ON ClearBridge Small Cap Portfolio (formerly Clearbridge Small Cap Portfolio), ONNasdaq-100 Index Portfolio (formerlyNasdaq-100 Index Portfolio), ON Bristol Portfolio (formerly Bristol Portfolio), ON Bryton Growth Portfolio (formerly Bryton Growth Portfolio), ON ICON Balanced Portfolio (formerly Balanced Portfolio), ON S&P MidCap 400 Index Portfolio (formerly S&P MidCap 400 Index Portfolio), ON Bristol Growth Portfolio (formerly Bristol Growth Portfolio), ON Risk Managed Balanced Portfolio (formerly Risk Managed Balanced Portfolio) (each a “Portfolio” and collectively the “Portfolios” of Ohio National Fund, Inc.), ON Conservative Model Portfolio, ON Moderately Conservative Model Portfolio, ON Balanced Model Portfolio, ON Moderate Growth Model Portfolio and ON Growth Model Portfolio (each a “Model Portfolio” and collectively, the “Model Portfolios” of the Ohio National Fund, Inc.), including the schedules of investments, as of December 31, 2018, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two year period then ended for the Portfolios and the year ended December 31, 2018 and the period from March 1, 2017 to December 31, 2017 for the Model Portfolios, and the related notes (collectively, the “financial statements”) and the financial highlights for each of the years or periods in the five year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Portfolios and Model Portfolios as of December 31, 2018, the results of their operations for the year then ended, the changes in their net assets for each of the years or periods in the two year period then ended, and the financial highlights for each of the years or periods in the five year period then ended for the Portfolios and for the years or periods in the two year period then ended for the Model Portfolios, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ and Model Portfolios’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios and Model Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2018, by correspondence with custodians, brokers, and transfer agents, or by other appropriate audit procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the auditor of one or more of the Ohio National Fund, Inc. investment companies since 1969.
Columbus, Ohio |
February 25, 2019 |
168
Additional Information | December 31, 2018 (Unaudited) |
(1) | Review and Approval of Advisory andSub-Advisory Agreements |
At a meeting held on November 15, 2018, the Board of Directors (the “Board” or “Directors”), including a majority of the Directors who are not “interested persons” of the Fund (the “Independent Directors”), approved the continuation of the Investment Advisory Agreement (the “Advisory Agreement”) with ONI (the “Adviser”) and, as applicable, thesub-advisory agreement with theSub-Adviser (each a“Sub-Adviser,” and together the“Sub-Advisers”) for each of the Portfolios identified below. The Independent Directors were separately represented by independent legal counsel in connection with their consideration of the approval of the continuation of these agreements.
The Directors noted that the Adviser is responsible for monitoring the investment performance and other responsibilities of the variousSub-Advisers that haveday-to-day responsibility for the decisions made for certain of the Fund’s investment portfolios (each, a “Portfolio”). The Directors further noted that, for those Portfolios subject to the Securities and Exchange Commission order (the “Order”) permitting them to operate as “funds of funds” and to invest in other investment companies in excess of the limits of Section 12(d)(1), the Adviser bears significant responsibility and administrative burden in the monitoring and reporting required by the Order’s conditions. They also noted that the Adviser reports to the Board on its analysis of eachSub-Adviser’s performance at the regular meetings of the Board, which are held at least quarterly. When warranted, the Adviser will add or remove a particular Portfolio from a watchlist that it maintains. Watchlist criteria include, for example: (a) Portfolio performance over various time periods; (b) Portfolio risk issues, such as changes in key personnel involved with Portfolio management or changes in investment philosophy or process; and (c) organizational risk issues, such as regulatory, compliance or legal concerns, or changes in the ownership of theSub-Adviser.
In considering the Advisory Agreement andsub-advisory agreements, the Board requested, received and reviewed a significant amount of information relating to each Portfolio, the Adviser and theSub-Advisers, including the following: (1) performance data for each Portfolio for various time periods, includingyear-to-date through September 30, 2018, (2) comparative performance, advisory fee and expense ratio information for a peer group of funds in the respective Portfolio’s Morningstar category (a “Morningstar Peer Group” or “peer group”), as well as management fee peer comparison charts showing where each Portfolio’s advisory fee was located in the dispersion of its peer group’s advisory fees; (3) comparable performance information for each Portfolio’s relevant benchmark index or indices; (4) comparative data regarding advisory fees, including data regarding the fees charged by the Adviser andSub-Advisers for managing other institutional funds and institutional accounts using investment strategies and techniques similar to those used in managing the Portfolios; (5) comparative data regarding the expense ratio of each Portfolio, as compared to its Morningstar Peer Group; (6) profitability analyses for the Adviser with respect to each Portfolio; and (7) other information regarding the nature, extent and quality of services provided by the Adviser and theSub-Advisers, as applicable. The Directors also took into account information regarding the services provided by the Adviser and eachSub-Adviser, and performance, fee and expense ratio information regarding each Portfolio provided to them periodically throughout the year. They also met with representatives of the Adviser to review the relative performance of each Portfolio, as compared with its benchmark index(es) and peer group.
The Directors, including all of the Independent Directors, were assisted by experienced independent legal counsel throughout the Advisory Agreement andsub-advisory agreement review process. The Independent Directors discussed the proposed continuations in private session with such counsel at which no representatives of management, the Adviser or anySub-Adviser were present. Each Director, including each of the Independent Directors, relied upon the advice of independent legal counsel and his or her own business judgment in determining the material factors to be considered in evaluating the Advisory Agreement and eachsub-advisory agreement and the weight to be given to each such factor. The conclusions reached by the Directors were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Director may have afforded different weight to the various factors in reaching his or her conclusions with respect to the Advisory Agreement and eachsub-advisory agreement.
Nature, Extent and Quality of Services
The Board evaluated the nature, extent and quality of the advisory services provided to the Portfolios by the Adviser. As part of its review, the Board reviewed information regarding the Adviser’s operations, procedures and personnel. The Directors took into account information they received during the previous year at Board meetings and other discussions and through periodic reports regarding the Adviser’s performance of its duties. The Directors considered the capabilities and resources that the Adviser has dedicated to performing services on behalf of the Fund and its Portfolios, as well as the quality of administrative and other services, including the Adviser’s role in monitoring the performance and quality of compliance of theSub-Advisers and other support to contract owners. The Directors also considered the quality of the Adviser’s compliance programs and the Adviser’s responsiveness to Board inquiries and requests.
169 | (continued) |
Ohio National Fund, Inc.
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
For each Portfolio with afund-of-funds structure, the Directors considered that the Adviser performs significant services to the Portfolio that are in addition to, rather than duplicative of, services provided under the advisory contracts of the underlying funds. The Directors noted the representations of the Adviser’s representatives that the Adviser performs regular reviews of each Portfolio and its underlying funds, focusing on the asset classmake-up of the Portfolio, the percentages invested in each underlying fund, and each underlying fund’s performance against its benchmark, in order to confirm that the Portfolio is diversified, has the appropriate asset mix, and is performing well. The Directors also noted that the Adviser periodically changes the mix of the underlying funds as a result of its reviews.
For each Portfolio subject to asub-advisory agreement, the Board considered similar criteria as applied to eachSub-Adviser, including the nature, extent and quality of thesub-advisory services provided by eachSub-Adviser. In addition to the criteria used to review the Adviser, the Directors reviewed information on eachSub-Adviser’s portfolio management and brokerage practices, including any soft dollar benefits received. The Directors also reviewed the performance record of each Portfolio managed by the applicableSub-Adviser. With respect to the ON Equity Portfolio, in the course of their deliberations at the meeting, the Directors determined to replace the currentSub-Adviser to the Portfolio with a newsub-adviser as of May 1, 2019. With the exception of the services of theSub-Adviser to the ON Equity Portfolio, it was the Directors’ conclusion that overall, they were satisfied with the nature, extent and quality of services provided to the Fund and each of the Portfolios.
Investment Performance
Representatives of the Adviser reviewed with the Directors each Portfolio’s performanceyear-to-date and for the1-,3- and5-year periods ended September 30, 2018, as compared to the Portfolio’s Morningstar Peer Group and benchmark(s). The Board also considered the Adviser’s effectiveness in monitoring the performance of eachSub-Adviser and the Adviser’s timeliness in responding to performance issues. The Directors discussed with Adviser representatives the returns of certain Portfolios that underperformed their respective benchmarks. APortfolio-by-Portfolio discussion of each Portfolio’s performance and the Board’s conclusions regarding that performance is set forth below.
Fees and Expenses
The Board considered the advisory fee for each Portfolio, as well as the difference of each Portfolio’s fee from the average advisory fee for the Portfolio’s Morningstar Peer Group and the fee’s percentile ranking within the peer group. The Board also considered charts showing, for each Portfolio, how the Portfolio’s advisory fees compared to the advisory fees of the funds in its peer group. The charts showed the number of funds in the peer group within each defined range of advisory fees, and the range that included the Portfolio. The Board also reviewed the difference between each Portfolio’s overall expense ratio and that of its Morningstar Peer Group, as well as the expense ratio’s percentile ranking within the peer group. For these purposes, the Morningstar Peer Groups excluded funds with net assets over $1 billion and all funds identified as being funds of funds. The Morningstar Peer Groups also excludednon-index funds for the ON S&P 500 Index® Portfolio, ON S&P MidCap 400® Index Portfolio, and the ONNasdaq-100® Index Portfolio and excluded index funds for all other Portfolios.
The Board looked at the average net assets for the funds in each Portfolio’s respective Morningstar Peer Group, and then compared the advisory fee that would have been paid by the Portfolio if the Portfolio had had net assets equal to the Morningstar Peer Group’s average net assets. The Board considered that comparison on an absolute and percentile ranking basis.
When applicable, the Board considered the amount of net advisory fee retained by the Adviser, after payment of thesub-advisory fee, as well as the proportion the net fee represented of the total advisory fee, in light of the services provided by the Adviser to the Portfolio.
When applicable, the Board also considered the fees paid toSub-Advisers. The Board relied to a degree on the Adviser’s negotiation of eachsub-advisory agreement on anarm’s-length basis and noted that, in the past, the Adviser had negotiated decreases in thesub-advisory fee for certain Portfolios and that Adviser usually passed the decrease on to shareholders by reducing its advisory fee. The Board considered the fees the Adviser andSub-Advisers charged to their separately managed institutional accounts and other accounts, and expressed no concerns with those rates relative to the fees charged to the Portfolios. The Directors also recognized that it was difficult to make comparisons of advisory fees because there were variations in the services that were included in the fees paid by other funds and separately managed accounts.
Profitability
The Directors reviewed the advisory fee paid to the Adviser for each Portfolio and noted thepre-tax profit margins reported by the Adviser for each Portfolio. The Directors noted that the profit margins for the Portfolios ranged from 24.89% to 85.22% with average profitability of 56.31% (without deducting distribution expenses) and ranged from 21.35% to 79.56% with average profitability of 44.84% (after deducting distribution expenses). The Directors also noted that the Adviser, and not the Portfolios, is responsible for
170 | (continued) |
Ohio National Fund, Inc.
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
payingsub-advisory fees to theSub-Advisers. The Board also evaluated whether the net advisory fee received by the Adviser for each Portfolio, after payingsub-advisory fees to theSub-Adviser, was reasonable, given the level of the Adviser’s services to the Portfolio. The Directors took into account the fact that the Adviser had contractually agreed to limit Portfolio expenses and reimburse expenses to the extent necessary to keep total Portfolio expenses at or below a specified amount. The Directors further considered the statement of a representative of the Adviser that the profitability calculations may not account for all of the Adviser’s costs in providing services to the Fund, including services outside the investment advisory function (such as Fund operations and legal functions), and that profitability would be less for each Portfolio if these costs were included. The Directors discussed that, if an adviser is extremely efficient, resulting in enhanced profitability, the adviser’s effective use of resources should not be penalized on a comparative basis. The Directors then considered potential benefits that the Adviser may receive in connection with the Fund, noting in particular that its insurance company parent makes money on the variable products through which the Fund is available as an investment vehicle. Additionally, the Directors acknowledged that calculating the Adviser’s profitability related to a specific Portfolio can be challenging and imprecise because of the difficulties in suitably allocating the Adviser’s expenses across the Portfolios given the Adviser’s shared efforts with respect to the Portfolios.
The Board also considered the reasonableness of thesub-advisory fees paid by the Adviser to eachSub-Adviser. The Directors relied on the ability of the Adviser to negotiate the terms of eachsub-advisory agreement, including thesub-advisory fee, atarm’s-length, noting that the Adviser is not affiliated with anySub-Adviser. The Directors noted that thesub-advisory fees were paid by the Adviser and not by a Portfolio and, therefore, the Adviser was incentivized to negotiate a favorable fee. They further considered the breakpoints established in thesub-advisory agreements and considered the impact of these breakpoints on theSub-Adviser’s profitability. The Board discussed economies of scale and agreed it was a matter more appropriately considered at the Advisory Agreement level. The Board concluded that the profitability, fees and potential realization of economies of scale by the Portfolios from thesub-advisory arrangements with the unaffiliatedSub-Advisers should not be a material factor in its deliberations.
After considering all of the above, the Board concluded that the profitability of the Adviser with respect to each Portfolio was reasonable.
Economies of Scale
The Directors noted that all of the advisory andsub-advisory fee schedules contain breakpoints that would reduce the applicable advisory orsub-advisory fees on assets above a specified level as the applicable Portfolio’s assets increase. The Directors also noted that a Portfolio would realize additional economies of scale if the Portfolio’s net assets increase over time proportionately more than certain other expenses. The Directors took into account that many of the Portfolios had a small amount of net assets relative to the funds in their respective peer groups. After considering each Portfolio’s current size and potential for growth, the Board concluded that each Portfolio was likely to benefit from economies of scale as the Portfolio’s net assets increased, and that the existing breakpoints are appropriate.
Portfolio-by-Portfolio Analysis
In addition to the foregoing, the Directors considered the specific factors and related conclusions set forth below with respect to each Portfolio’s performance and fees and expenses. Except as otherwise indicated, the performance data described below for each Portfolio is for periods ended September 30, 2018.
ON Equity Portfolio (Adviser – ONI,Sub-Adviser – ClearBridge). The Directors reviewed the comparative performance information for the Portfolio assub-advised by ClearBridge, but noted that, at the recommendation of the Adviser, they had determined to replace ClearBridge as thesub-adviser for the Portfolio (after identification and approval of a newsub-adviser) effective May 1, 2019 due to the poor performance of the Portfolio. They therefore determined that, in their consideration of the renewal of the Advisory Agreement, they should focus on the factors other than performance, as they believed that the Adviser had demonstrated the appropriate oversight of theSub-Adviser in determining to recommend the selection of a newsub-adviser. The Directors noted that although the Portfolio’s advisory fee was higher than the peer group average, its net expense ratio was below the peer group average. Overall, the Board concluded that the advisory fee was reasonable and that it was appropriate to continue the ClearBridgesub-advisory agreement for the period until a newsub-adviser assumes thesub-adviser role.
ON Bond Portfolio (Adviser – ONI). The Directors noted that the Portfolio slightly underperformed, but provided returns in line with, its peer group average across all time periods and had also provided returns in line with its benchmark index for all time periods (underperforming in all except the3-year period). The Directors noted that the Portfolio’s advisory fee was slightly above with the peer group average, while its net expense ratio was below the peer group average. Overall, the Board concluded that the Portfolio’s performance was acceptable and that the advisory fee was reasonable.
171 | (continued) |
Ohio National Fund, Inc.
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
ON Omni Portfolio (Adviser – ONI,Sub-Adviser – Suffolk). The Directors observed that the Portfolio outperformed its peer group average over each period except theyear-to-date period and had underperformed its benchmark index for each period except the3- and5-year periods. The Directors noted that the Portfolio’s advisory fee and net expense ratio were below its peer group’s averages. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Capital Appreciation Portfolio (Adviser – ONI,Sub-Adviser – Jennison). The Directors observed that the Portfolio underperformed its peer group average and benchmark index across all time periods. A representative of the Adviser commented that although the Portfolio is anall-cap fund, with 37% of the Portfolio invested inmid- andsmall-cap stocks at thequarter-end, it was being compared to alarge-cap blend peer group. The Adviser representative stated that large- andmega-cap stocks have outperformedmid-andsmall-cap stocks for an extended period, and that the Portfolio’s returns were more in line with the broadermid-cap index. The Directors acknowledged that the Portfolio’s strategy was under-rewarded in the current market, but expected the strategy to yield better returns when the market changes. The Directors noted that the Portfolio’s advisory fee and net expense ratio were higher than its peer group’s averages. They considered that the Portfolio was anall-cap fund, which justifies a higher fee than the large cap funds making up the majority of its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable, and that the advisory andsub-advisory fees were reasonable.
ON International Equity Portfolio (Adviser – ONI,Sub-Adviser – Lazard). The Directors recalled that Lazard took over asSub-Adviser in 2017 and noted that the Portfolio outperformed its peer group over theyear-to-date and1-year period, but underperformed the benchmark index over the same periods. A representative of the Adviser noted that the Portfolio was overweight in emerging markets and attributed the Portfolio’s underperformance relative to the benchmark index to stock selection in Japan. The Directors noted that the Portfolio’s advisory fee and net expense ratio were below its peer group’s averages. Overall, the Directors concluded that Portfolio’s performance was acceptable and that the advisory fee was reasonable.
ON Foreign Portfolio (Adviser – ONI,Sub-Adviser – Templeton). The Directors recalled that Templeton assumed the role ofSub-Adviser to the Portfolio in May of 2017, and that the Portfolio outperformed its benchmark index and peer group average for theyear-to-date. The Directors noted that the Portfolio underperformed its benchmark index and peer group average across all other periods. The Directors noted that the Portfolio’s advisory fee and net expense ratio were higher than its peer group’s averages, but that the Portfolio’s size was smaller than the average size of the funds in the peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable, and that the advisory fee was reasonable.
ON Janus Henderson Forty Portfolio (Adviser – ONI,Sub-Adviser – Janus). The Directors reviewed the Portfolio’s performance and noted that it had outperformed its benchmark index and peer group average across all periods with atop-quartile ranking for each period. A representative of the Adviser commented that stock selection within the technology sector was the main driver of the Portfolio’s outperformance. The Directors noted that although the Portfolio’s advisory fee was above the peer group average, its net expense ratio was below the peer group average. Overall, the Board concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Janus Henderson Venture Portfolio (Adviser – ONI,Sub-Adviser – Janus). The Directors noted that the Portfolio outperformed its benchmark index over theyear-to-date,1- and5-year periods and performedin-line with the benchmark over the3-year period. The Directors observed that the Portfolio outperformed its peer group average, and ranked in the top quartile over the5-year period. The Directors noted that the Portfolio’s advisory fee and net expense ratio were below its peer group’s averages. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Janus Henderson Enterprise Portfolio (Adviser – ONI,Sub-Adviser – Janus). The Directors recalled that Janus assumed the role ofSub-Adviser to the Portfolio on May 1, 2018. The Directors noted that the Portfolio had underperformed its benchmark index and peer group averages for all periods shown but had shown improvement for theyear-to-date, with its performance in the 54th percentile for its peer group. The Directors observed that although the Portfolio’s advisory fee was above its peer group average, its net expense ratio was below its peer group average. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON S&P 500® Index Portfolio (Adviser – ONI,Sub-Adviser – Geode). The Directors observed that while the Portfolio underperformed its benchmark index for theyear-to-date,1-,3- and5-year periods, its performance generally was in line with the index when expenses were excluded. The Directors deemed peer group performance data for index funds to be generally irrelevant and did not rely on peer group comparison performance figures for the Portfolio. The Directors noted that, while the advisory fee was above the Portfolio’s peer group average, the overall expense ratio was the statistic most important to index fund shareholders, and the Portfolio’s net expense ratio was lower than the average for the peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
ON Federated Strategic Value Dividend Portfolio (Adviser – ONI,Sub-Adviser – Federated Equity). The Directors acknowledged that the Portfolio underperformed its benchmark index and peer group average for each of the periods. They also discussed a summary of dividend yield and dividend growth for the Portfolio, noting that the Portfolio was meeting its objective of obtaining dividend yield. The Directors also noted that although the Portfolio’s advisory fee was above the average of its peer group, its net expense ratio was below its peer group average. Overall, the Board concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Federated High Income Bond Portfolio (Adviser – ONI,Sub-Adviser – Federated Investment). The Directors observed that the Portfolio underperformed its benchmark index and peer group for each of the periods, except that it outperformed its peer group for the3- and5-year periods and ranked in the top quartile among its peer group for the5-year period. The Directors noted that the advisory fee was above the peer group average, while the net expense ratio was below the peer group average. Overall, the Board concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON ClearBridge Small Cap Portfolio (Adviser – ONI,Sub-Adviser – ClearBridge). The Directors observed that the Portfolio outperformed its benchmark index for all periods and underperformed its peer group average for each period except the3-year period, noting that ClearBridge assumed responsibility asSub-Adviser in 2015. The Directors considered that the Portfolio’s advisory fee and net expense ratio were above its peer group’s averages. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ONNasdaq-100® Index Portfolio (Adviser – ONI,Sub-Adviser – Geode). The Directors observed that while the Portfolio underperformed its benchmark index across all time periods shown, its performance generally was in line with the index when expenses were excluded. The Directors deemed peer group performance data for index funds to be generally irrelevant and did not rely on peer group comparison performance figures for the Portfolio. The Directors noted that, while the Portfolio’s advisory fee was above the peer group average, the overall expense ratio was the statistic most important to index fund shareholders, and the Portfolio’s net expense ratio was lower than the average for its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Bristol Portfolio (Adviser – ONI,Sub-Adviser – Suffolk). The Directors noted that the Portfolio underperformed its benchmark index for each period except the5-year period and underperformed its peer group average for each period except the3- and5-year periods. The Directors recognized that for the5-year period, the Portfolio’s performance ranked in the 3rd percentile of its peer group. The Directors considered that, although the Portfolio’s advisory fee was above the peer group average, the Portfolio’s net expense ratio wasin-line with the peer group average. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Bryton Growth Portfolio (Adviser – ONI,Sub-Adviser – Suffolk). The Directors noted that the Portfolio outperformed its benchmark index and peer group average for theyear-to-date and1-year period, and was generallyin-line with the benchmark index and its peer group average for the3- and5-year periods. A representative of the Adviser pointed out that the Portfolio ranked in the top quartile of its peer group for theyear-to-date and1-year periods. The Directors noted that the Portfolio’s advisory fee and net expense ratio were below its peer group’s averages. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON ICON Balanced Portfolio (Adviser – ONI,Sub-Adviser – ICON). The Portfolio underperformed its benchmark index for each of the periods shown and its peer group average for all time periods except theyear-to-date. A representative of the Adviser attributed the underperformance to the equity portion of the Portfolio, but noted the fixed income portion of the Portfolio had continued to perform well. The Directors noted that the Portfolio’s advisory fee and net expense ratio were below its peer group’s averages. Overall, the Board concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON S&P MidCap 400® Index Portfolio (Adviser �� ONI,Sub-Adviser – Geode). The Portfolio had only been operating as an index fund since December 16, 2016, and the Directors therefore did not consider performance for the3- and5-year periods. The Directors observed that while the Portfolio underperformed its benchmark index for theyear-to-date and1-year periods, its performance generally was in line with the benchmark index when expenses were excluded. The Directors deemed peer group performance data for index funds to be generally irrelevant and did not rely on peer group comparison performance figures for the Portfolio. The Directors noted that Portfolio’s advisory fee and net expense ratio were higher than the averages of its peer group, but that the size of the peer group was small. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Bristol Growth Portfolio (Adviser – ONI,Sub-Adviser – Suffolk). The Directors discussed that the Portfolio underperformed its benchmark index over each period shown and its peer group average for each period except the5-year period. The Directors commented that the Portfolio’s performance for the3-year period was slightly below the average of its peer group and that its
173 | (continued) |
Ohio National Fund, Inc.
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
performance for the5-year period was above its peer group average. The Directors noted that although the Portfolio’s advisory fee was above its peer group average, the net expense ratio was below the average for its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Risk Managed Balanced Portfolio (Adviser – ONI,Sub-Advisers – Janus and AnchorPath). The Directors noted that the Portfolio outperformed its peer group average for all periods shown. The Directors noted that much of the Portfolio’s performance was in the top quartile of its peer group for all periods shown and that the Janus-managed sleeve had performed according to expectations in a generally rising market. The Directors noted that the AnchorPath component of the Portfolio was a risk management overlay without available comparison data, but considered the comment of the Adviser’s representative that AnchorPath’s performance was in line with that of other insurance funds with risk management overlays. The Directors noted that the Portfolio’s advisory fee and net expense ratio were higher than its peer group’s averages. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory andsub-advisory fees were reasonable.
ON Model Portfolios
With respect to each of the fund of funds Portfolios (the “ON Model Portfolios”), the Directors noted that the Adviser had made significant changes in the mix of underlying funds, particularly among the equity funds, to reduce or remove underperforming funds and to provide more balance between growth and value. They also noted that each fund of funds Portfolios had shown significant improvement in performance relative to its peer group over the most recent quarter ended September 30, 2018, which a representative of the Adviser attributed to its adjustments. The representative of the Adviser also indicated that it had not determined whether it would extend the expense caps for these Portfolios for an additional year. The representative pointed out, however, that the gross advisory fees for three of the Portfolios were at or below the peer group average, and that the fees for the other two Portfolios were 2 basis points and 4 basis points, respectively, higher than the peer group average.
ON Conservative Model Portfolio (Adviser – ONI). The Directors observed that while the Portfolio underperformed its benchmark index and peer group average for theyear-to-date and1- year period, it outperformed the benchmark index and peer group average for thequarter-to-date. A representative of the Adviser reported that the Portfolio’s performance was in line with the benchmark index and slightly below its peer group average for the since inception period. The Directors noted that although the Portfolio’s advisory fee was higher than the average of its peer group, its net expense ratio was lower than the average of its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory fee was reasonable.
ON Moderately Conservative Model Portfolio (Adviser – ONI). The Directors noted that the Portfolio underperformed its benchmark index and peer group average for theyear-to-date and1- year periods, but outperformed the benchmark index and peer group average for thequarter-to-date. The Directors observed that the Portfolio’s advisory fee and net expense ratio were lower than the averages of its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory fee was reasonable.
ON Balanced Model Portfolio (Adviser – ONI). The Directors observed that the Portfolio underperformed its benchmark index and peer group average for all periods. The Directors noted that the Portfolio’s performance for thequarter-to-date was more in line with the benchmark index. The Directors noted that the Portfolio’s advisory fee and net expense ratio were lower than the average of its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory fee was reasonable.
ON Moderate Growth Model Portfolio (Adviser – ONI). The Directors observed that the Portfolio underperformed its benchmark index and peer group average for all periods. The Directors noted that the Portfolio’s performance improved for thequarter-to-date and was more in line with the benchmark index and peer group average. The Directors also noted that the Portfolio’s advisory fee was on par with the average of its peer group, and that the net expense ratio was lower than the average of its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory fee was reasonable.
ON Growth Model Portfolio (Adviser – ONI). The Directors observed that the Portfolio underperformed its benchmark index and peer group for all periods shown. The Directors noted that the Portfolio’s performance improved for thequarter-to-date and was more in line with the benchmark index. The Directors noted that the Portfolio’s advisory fee was on par with the average of its peer group, and that the net expense ratio was lower than the average of its peer group. Overall, the Directors concluded that the Portfolio’s performance was acceptable and that the advisory fee was reasonable.
After consideration of the foregoing, the Board reached the following conclusions regarding the Investment Advisory Agreement and, as applicable, thesub-advisory agreement(s) with respect to each Portfolio, in addition to the conclusions set forth above: (a) ONI and theSub-Adviser(s) had demonstrated that they possessed the capability and resources to perform the duties required of them under the Investment Advisory Agreement and applicablesub-advisory agreement(s), respectively; (b) the investment philosophy, strategies and techniques of ONI (with respect to the Portfolios without aSub-Adviser) and theSub-Adviser(s) were appropriate for pursuing the applicable Portfolio’s investment objective; (c) ONI (with respect to the Portfolios without a
174 | (continued) |
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
Sub-Adviser) and theSub-Adviser(s) were likely to execute their investment philosophy, strategies and techniques consistently over time; and (d) ONI and theSub-Adviser(s) maintained appropriate compliance programs. Based on all of the above-mentioned factors and their related conclusions, with no single factor or conclusion being determinative and with each Director not necessarily attributing the same weight to each factor, the Directors unanimously concluded that approval of the continuation of the Investment Advisory Agreement and, as applicable, thesub-advisory agreement was in the best interests of each Portfolio and its shareholders. Accordingly, the Board, including all of the Independent Directors, voted unanimously to approve the continuation of the Investment Advisory Agreement and, as applicable, thesub-advisory agreement(s) for each Portfolio.
(2) | Expense Disclosure |
An individual may not buy or own membership interests of the Fund directly. An individual acquires an indirect interest in the Fund by purchasing a variable annuity contract or variable insurance policy and allocating premiums or purchase payments to Fund Portfolios available through the separate accounts of ONLIC, ONLAC, and NSLA. Separate accounts of these entities are the shareholders of the Fund.
As a shareholder of the Fund, a separate account incurs ongoing costs, including management fees and other Fund expenses. This example is intended to help a policy/contract owner understand ongoing costs (in dollars) associated with the underlying investment in the Portfolios by the separate account shareholder and to compare these costs with the ongoing costs associated with investing in other mutual funds.
The example is based on an investment of $1,000 invested at July 1, 2018 and held through December 31, 2018.
Actual Expenses
The table below provides information about investment values and actual expenses associated with each Portfolio of the Fund. The information below, together with the amount of an underlying investment, can be used to estimate expenses paid over the period. An estimate can be obtained by simply dividing an underlying investment value by $1,000 (for example, an $8,600 investment value divided by $1,000 = 8.6), then multiplying the result by the number in the table under the heading entitled “Expenses Paid During Period”.
Portfolio | Beginning Investment Value 7/1/2018 | Ending Investment Value 12/31/2018 | Expenses Paid During Period* 7/1/2018 – 12/31/2018 | Expense Ratio During Period 7/1/2018 – 12/31/2018 (Annualized) | ||||||||||
ON Equity | $ | 1,000.00 | $ | 878.30 | $3.88 | 0.82 | % | |||||||
ON Bond | $ | 1,000.00 | $ | 1,001.80 | $2.98 | 0.59 | % | |||||||
ON Omni | $ | 1,000.00 | $ | 855.90 | $3.60 | 0.77 | % | |||||||
ON Capital Appreciation | $ | 1,000.00 | $ | 852.70 | $4.20 | 0.90 | % | |||||||
ON International Equity | $ | 1,000.00 | $ | 889.70 | $4.00 | 0.84 | % | |||||||
ON Foreign | $ | 1,000.00 | $ | 877.60 | $5.92 | 1.25 | % | |||||||
ON Janus Henderson Forty | $ | 1,000.00 | $ | 926.20 | $4.13 | 0.85 | % | |||||||
ON Janus Henderson Venture | $ | 1,000.00 | $ | 838.90 | $3.94 | 0.85 | % | |||||||
ON Janus Henderson Enterprise | $ | 1,000.00 | $ | 919.10 | $4.60 | 0.95 | % | |||||||
ON S&P 500®Index | $ | 1,000.00 | $ | 929.60 | $1.85 | 0.38 | % | |||||||
ON Federated Strategic Value Dividend | $ | 1,000.00 | $ | 960.10 | $3.80 | 0.77 | % | |||||||
ON Federated High Income Bond | $ | 1,000.00 | $ | 973.00 | $3.78 | 0.76 | % | |||||||
ON ClearBridge Small Cap | $ | 1,000.00 | $ | 860.30 | $4.22 | 0.90 | % | |||||||
ONNasdaq-100®Index | $ | 1,000.00 | $ | 901.70 | $1.97 | 0.41 | % | |||||||
ON Bristol | $ | 1,000.00 | $ | 816.00 | $3.80 | 0.83 | % | |||||||
ON Bryton Growth | $ | 1,000.00 | $ | 822.70 | $4.96 | 1.08 | % | |||||||
ON ICON Balanced | $ | 1,000.00 | $ | 889.00 | $3.09 | 0.65 | % | |||||||
ON S&P MidCap 400®Index | $ | 1,000.00 | $ | 857.90 | $2.25 | 0.48 | % | |||||||
ON Bristol Growth | $ | 1,000.00 | $ | 819.70 | $4.08 | 0.89 | % | |||||||
ON Risk Managed Balanced | $ | 1,000.00 | $ | 980.30 | $4.94 | 0.99 | % | |||||||
ON Conservative Model | $ | 1,000.00 | $ | 983.60 | $1.30 | 0.26 | % | |||||||
ON Moderately Conservative Model | $ | 1,000.00 | $ | 959.10 | $1.43 | 0.29 | % | |||||||
ON Balanced Model | $ | 1,000.00 | $ | 934.40 | $1.56 | 0.32 | % | |||||||
ON Moderate Growth Model | $ | 1,000.00 | $ | 907.70 | $1.78 | 0.37 | % |
175 | (continued) |
Ohio National Fund, Inc.
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
Portfolio | Beginning Investment Value 7/1/2018 | Ending Investment Value 12/31/2018 | Expenses Paid During Period* 7/1/2018 – 12/31/2018 | Expense Ratio During Period 7/1/2018 – 12/31/2018 (Annualized) | ||||||||
ON Growth Model | $ | 1,000.00 | $889.90 | $1.81 | 0.38 | % |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical investment values and hypothetical expenses based on each respective Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not an actual return. The hypothetical investment values and expenses may not be used to estimate the actual ending investment balance or expenses actually paid for the period by the shareholders. A policy/contract holder may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Portfolio | Beginning Investment Value 7/1/2018 | Ending Investment Value 12/31/2018 | Expenses Paid During Period* 7/1/2018 – 12/31/2018 | Expense Ratio During Period 7/1/2018 – 12/31/2018 (Annualized) | ||||||||||||
ON Equity | $ | 1,000.00 | $ | 1,021.07 | $4.18 | 0.82 | % | |||||||||
ON Bond | $ | 1,000.00 | $ | 1,022.23 | $3.01 | 0.59 | % | |||||||||
ON Omni | $ | 1,000.00 | $ | 1,021.32 | $3.92 | 0.77 | % | |||||||||
ON Capital Appreciation | $ | 1,000.00 | $ | 1,020.67 | $4.58 | 0.90 | % | |||||||||
ON International Equity | $ | 1,000.00 | $ | 1,020.97 | $4.28 | 0.84 | % | |||||||||
ON Foreign | $ | 1,000.00 | $ | 1,018.90 | $6.36 | 1.25 | % | |||||||||
ON Janus Henderson Forty | $ | 1,000.00 | $ | 1,020.92 | $4.33 | 0.85 | % | |||||||||
ON Janus Henderson Venture | $ | 1,000.00 | $ | 1,020.92 | $4.33 | 0.85 | % | |||||||||
ON Janus Henderson Enterprise | $ | 1,000.00 | $ | 1,020.42 | $4.84 | 0.95 | % | |||||||||
ON S&P 500®Index | $ | 1,000.00 | $ | 1,023.29 | $1.94 | 0.38 | % | |||||||||
ON Federated Strategic Value Dividend | $ | 1,000.00 | $ | 1,021.32 | $3.92 | 0.77 | % | |||||||||
ON Federated High Income Bond | $ | 1,000.00 | $ | 1,021.37 | $3.87 | 0.76 | % | |||||||||
ON ClearBridge Small Cap | $ | 1,000.00 | $ | 1,020.67 | $4.58 | 0.90 | % | |||||||||
ONNasdaq-100®Index | $ | 1,000.00 | $ | 1,023.14 | $2.09 | 0.41 | % | |||||||||
ON Bristol | $ | 1,000.00 | $ | 1,021.02 | $4.23 | 0.83 | % | |||||||||
ON Bryton Growth | $ | 1,000.00 | $ | 1,019.76 | $5.50 | 1.08 | % | |||||||||
ON ICON Balanced | $ | 1,000.00 | $ | 1,021.93 | $3.31 | 0.65 | % | |||||||||
ON S&P MidCap 400®Index | $ | 1,000.00 | $ | 1,022.79 | $2.45 | 0.48 | % | |||||||||
ON Bristol Growth | $ | 1,000.00 | $ | 1,020.72 | $4.53 | 0.89 | % | |||||||||
ON Risk Managed Balanced | $ | 1,000.00 | $ | 1,020.21 | $5.04 | 0.99 | % | |||||||||
ON Conservative Model | $ | 1,000.00 | $ | 1,023.89 | $1.33 | 0.26 | % | |||||||||
ON Moderately Conservative Model | $ | 1,000.00 | $ | 1,023.74 | $1.48 | 0.29 | % | |||||||||
ON Balanced Model | $ | 1,000.00 | $ | 1,023.59 | $1.63 | 0.32 | % | |||||||||
ON Moderate Growth Model | $ | 1,000.00 | $ | 1,023.34 | $1.89 | 0.37 | % | |||||||||
ON Growth Model | $ | 1,000.00 | $ | 1,023.29 | $1.94 | 0.38 | % | |||||||||
* | Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year (184 days) divided by the number of days in the fiscal year (365 days). Please note that the expenses shown in these tables are meant to highlight ongoing Fund costs only and do not reflect any contract-level expenses or Fund transactional costs, such as sales charges (loads) or exchange fees (if any). Therefore, these tables are useful in comparing ongoing fund costs only, and will not fully assist a policy/contract owner in determining the relative total expenses of different funds. In addition, if transactional costs were included, costs may have been higher for these Portfolios as well as for a fund being compared. |
(3) Other Federal Tax Information
For corporate shareholders, the percentages of the total ordinary income dividends paid in 2018, that were incurred for the 2018 tax year, that qualify for the corporate dividends received deduction are as follows:
ON Equity | 47.89 | % | ||
ON Bond | 0.00 | % | ||
ON Omni | 52.48 | % | ||
ON Capital Appreciation | 41.04 | % |
ON International Equity | 0.00 | % | ||
ON Foreign | 1.24 | % | ||
ON Janus Henderson Forty | 0.00 | % | ||
ON Janus Henderson Venture | 45.10 | % |
176 | (continued) |
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Additional Information (Continued) | December 31, 2018 (Unaudited) |
ON Janus Henderson Enterprise | 14.50 | % | ||
ON S&P 500®Index | 100.00 | % | ||
ON Federated Strategic Value Dividend | 62.29 | % | ||
ON Federated High Income Bond | 0.00 | % | ||
ON ClearBridge Small Cap | 48.81 | % | ||
ONNasdaq-100®Index | 100.00 | % | ||
ON Bristol | 50.98 | % | ||
ON Bryton Growth | 2.17 | % | ||
ON ICON Balanced | 40.25 | % |
ON S&P MidCap 400®Index | 74.58 | % | ||
ON Bristol Growth | 38.44 | % | ||
ON Risk Managed Balanced | 63.88 | % | ||
ON Conservative Model | 8.68 | % | ||
ON Moderately Conservative Model | 14.29 | % | ||
ON Balanced Model | 19.91 | % | ||
ON Moderate Growth Model | 26.67 | % | ||
ON Growth Model | 30.96 | % |
Pursuant to Section 853 of the Internal Revenue Code, the Fund designates the following amounts as foreign taxes paid for the year ended December 31, 2018:
Creditable Foreign Taxes Paid | Per Share Amount | Portion of Ordinary Income Distribution Derived from Foreign Sourced Income | ||||||||||
ON International Equity | $ | 1,329,329 | $0.0335 | 97.57 | % | |||||||
ON Foreign | $ | 221,631 | $0.1128 | 97.83 | % | |||||||
ON Conservative Model | $ | 8,200 | $0.0011 | 2.05 | % | |||||||
ON Moderately Conservative Model | $ | 61,696 | $0.0026 | 5.01 | % | |||||||
ON Balanced Model | $ | 548,969 | $0.0048 | 9.26 | % | |||||||
ON Moderate Growth Model | $ | 1,240,614 | $0.0063 | 12.89 | % | |||||||
ON Growth Model | $ | 324,023 | $0.0075 | 16.62 | % |
Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes. None of the Portfolios listed above derived any income from ineligible foreign sources, as defined under Section 901(j) of the Internal Revenue Code.
(4) | Other Disclosures |
The Statement of Additional Information of Ohio National Fund, Inc. (the “Fund”) includes additional information about the Fund’s Board of Directors (the “Board”) and is available athttp://www.ohionationalfund.com or upon request, without charge, by calling877-781-6392 (toll-free).
A description of the policies and procedures that the Fund uses in voting proxies relating to Fund securities, as well as information regarding how the Fund voted proxies during the most recent twelve-month period ended June 30, is available without charge, upon request, by calling877-781-6392 (toll-free) and on the SEC’s website athttp://www.sec.gov.
The Fund has filed its Schedules of Investments as of March 31 and September 30 with the SEC, as required, on FormN-Q. FormN-Q is required to be filed with the SEC for the first and third quarters of each fiscal year within sixty days after the end of each period and is available on the SEC website upon acceptance of each submission. The Fund’s FormsN-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information about the Public Reference Room is available by calling1-800-SEC-0330 (toll-free).
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus of the Fund. For a prospectus containing more complete information, including charges and expenses, please contact Ohio National Investments, Inc., One Financial Way, Cincinnati, OH 45242, telephone877-781-6392 (toll-free).
177 |
Information about Directors and Officers | December 31, 2018 (Unaudited) |
Name and Address | Age | Position(s) with the Fund | Term of Office and Length of Time Served | Number of Portfolios in the Fund to be Overseen by Director | Principal Occupation(s) During Past Five Years and Other Directorships | |||||||
Independent | ||||||||||||
| Directors | |||||||||||
George M. Vredeveld One Financial Way Cincinnati, Ohio | 76 | Director, Member of Audit and Independent Directors Committees | Indefinite; Since March 1996 | 25 | Professor Emeritus, Finance: University of Cincinnati (January 2014 - present); Research Fellow and Member of Academic Council: Varna Free University, Varna, Bulgaria (2012 - present); Alpaugh Professor of Economics: Lindner College of Business, University of Cincinnati (2004 - 2013); Founder/President: Economics Center at the University of Cincinnati (1977 - 2012). | |||||||
Madeleine W. Ludlow One Financial Way Cincinnati, Ohio | 64 | Director, Chairman of Audit Committee and Member of Independent Directors Committee | Indefinite; Since April 2012 | 25 | Founder/Managing Director: West Capital Partners LLC (2010 - present), Ludlow Ward Capital Advisors LLC (2005 - 2009); Director: ALLETE, Inc. | |||||||
Geoffrey Keenan One Financial Way Cincinnati, Ohio | 60 | Lead Independent Director, Member of Audit and Independent Directors Committees | Indefinite; Since January 2015 | 25 | Executive Vice President and Chief Operating Officer: Gateway Investment Advisers, LLC (1995 - 2013). | |||||||
Lawrence L. Grypp One Financial Way Cincinnati, Ohio | 70 | Director, Member of Audit and Independent Directors Committees | Indefinite; Since December 2016 | 25 | Senior Business Advisor and Board Member: Goering Center for Family and Private Business (January 2018 - Present); President: Goering Center for Family and Private Business (August 2008 - December 2017). | |||||||
Interested Director | ||||||||||||
John J. Palmer One Financial Way Cincinnati, Ohio | 79 | Chairman and Director | Indefinite; Since July 1997 | 25 | Insurance industry consultant (April 2010 - present), President: Ohio National Fund, Inc. (1997 - 2010); Director and Vice Chairman: ONLIC (1997 - 2010); President and CEO: NSLA (2002 - 2010); Director: NSLA. | |||||||
Officers | ||||||||||||
Michael J. DeWeirdt One Financial Way Cincinnati, Ohio | 59 | President | Indefinite; Since March 2017 | Senior Vice President and Chief Product Officer: ONLIC (September 2018 - Present); President: NSLAC (May 2016 - Present); Senior Vice President and Head of Annuities SBU: ONLIC (January 2016 - September 2018); Senior Vice President, Chief Risk Officer: ONLIC (September 2015 - December 2015); Senior Vice President, Capital and Financial Risk Management: ONLIC (December 2012 - September 2015) | ||||||||
Paul J. Gerard One Financial Way Cincinnati, Ohio | 59 | Vice President | Indefinite; Since March 2016 | Senior Vice President and Chief Investment Officer: ONLIC and NSLA (January 2016 - present); Senior Vice President, Investments: ONLIC (July 2012 - December 2015) |
178
Ohio National Fund, Inc.
| ||
Information about Directors and Officers (Continued) | December 31, 2018 (Unaudited) |
Name and Address | Age | Position(s) with the Fund | Term of Office and Length of Time Served | Number of Portfolios in the Fund to be Overseen by Director | Principal Occupation(s) During Past Five Years and Other Directorships | |||||||
R. Todd Brockman One Financial Way Cincinnati, Ohio | 50 | Treasurer | Indefinite; Since August 2004 | Vice President, Mutual Funds: ONLIC and NSLA (February 2014 - present); Second Vice President, Mutual Fund Operations: ONLIC and NSLA (January 2007 - February 2014); Treasurer: ONI. | ||||||||
Kimberly A. Plante One Financial Way Cincinnati, Ohio | 44 | Secretary | Indefinite; Since March 2005 | Vice President and Counsel: ONLIC (November 2017 - present); Second Vice President and Counsel: ONLIC (January 2016 - November 2017); Senior Associate Counsel: ONLIC (January 2011 - January 2016); Secretary: ONI; Officer of various other Ohio National-affiliated companies. | ||||||||
Keith Dwyer One Financial Way Cincinnati, Ohio | 46 | Chief Compliance Officer | Indefinite; Since August 2016 | Second Vice President, Fund Compliance: ONLIC (August 2016 - present); Director, Fund Compliance: ONLIC (January 2015 - August 2016); Administrator, Fund Compliance: ONLIC (January 2014 - January 2015); Compliance Analyst: ONLIC (April 2013 - January 2014); Chief Compliance Officer: ONI and other Ohio National-affiliated companies (August 2016 - present); Chief Compliance Officer: Fiduciary Capital Management (“FCM”) (August 2016 - December 2017); Chief Compliance Officer: Suffolk (August 2016 - December 2016); Interim Chief Compliance Officer: ONI, Suffolk, FCM and other Ohio National-affiliated companies (November 2015 - August 2016). | ||||||||
Daniel P. Leming One Financial Way Cincinnati, Ohio | 33 | Assistant Treasurer | Indefinite; Since March 2016 | Director, Fund Operations and Analysis: ONLIC (July 2018 - present); Assistant Director, Fund Operations and Analysis: ONLIC (December 2016 - June 2018); Manager, Fund Operations and Analysis: ONLIC (February 2016 - December 2016); Sr. Mutual Fund Reporting & Operations Analyst: ONLIC (May 2012 - February 2016). |
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Ohio National Fund, Inc.
Post Office Box 371
Cincinnati, Ohio 45201
Form 1320 Rev.2-19
Item 2. | Code Of Ethics. |
As of the end of the period covered by this report, Ohio National Fund, Inc. (the “Fund”) has adopted a code of ethics that applies to the Fund’s principal executive officer and principal financial officer. There were no substantive amendments or waivers to the Code of Ethics during the period covered by this report.
A copy of this Code of Ethics is filed as ExhibitEX-99.CODE to this FormN-CSR and is also available, without charge, uponrequest, by calling877-781-6392 toll free.
Item 3. | Audit Committee Financial Expert. |
The Fund’s Board of Directors has determined that the Fund has an audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Madeleine W. Ludlow, who is independent for purposes of Item 3 of FormN-CSR.
Item 4. | Principal Accountant Fees And Services. |
The aggregate fees for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Fund’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are listed below.
(a) | Audit Fees. | |||||||||
Audits of the Portfolios:
| ||||||||||
Fiscal year ended December 31, 2018: | $338,500 | |||||||||
Fiscal year ended December 31, 2017: | $328,500 | |||||||||
(b) | Audit-Related Fees. | |||||||||
Consent(s) onN-1A Annual Registration Statement(s) filed with the SEC:
| ||||||||||
Fiscal year ended December 31, 2018: | $8,000 | |||||||||
Fiscal year ended December 31, 2017: | $8,000 | |||||||||
(c) | Tax Fees.
| |||||||||
Fiscal year ended December 31, 2018: | $126,000 | |||||||||
Fiscal year ended December 31, 2017: | $118,875 | |||||||||
(d) | All Other Fees. None. | |||||||||
(e)(1) | Audit CommitteePre-Approval Policies and Procedures: | |||||||||
The Fund’s Audit Committee has adopted an Audit Committee Charter that requires that the Audit Committee oversee the quality and appropriateness of the accounting methods used in the preparation of the Fund’s financial statements, and the independent audit thereof; approve the selection and compensation of the independent auditors; andpre-approve the performance, by the independent auditors, ofnon-audit services for the Fund, its investment adviser, or any affiliated entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Fund. | ||||||||||
(e)(2) | Services Approved Pursuant to Paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X: | |||||||||
During the fiscal years ended December 31, 2018 and 2017, there were nonon-audit services provided by the Fund’s principal accountant that would have requiredpre-approval by the Fund’s Audit Committee. The audit-related fees aforementioned werepre-approved by the Fund’s Audit Committee, although not required by paragraph (c) (7) (ii) of RegulationS-X, as the audit-related fees were less than five percent of the total amount of revenues paid to the Fund’s principal accountant. |
(f) | Not Applicable. | |||||
(g) | There were nonon-audit services provided by the Fund’s principal accountant, other than items disclosed in item(b) above, in which a fee was billed to the Fund, the Fund’s adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the last two fiscal years. | |||||
(h) | Not applicable, as there were nonon-audit services performed by the Fund’s principal accountant that were rendered to the Fund, the Fund’s adviser, or any entity controlling, controlled by, or under common control with the adviser that provided ongoing services to the registrant that were notpre-approved for the last two fiscal years. |
Item 5. | Audit Committee Of Listed Registrants. |
Not Applicable.
Item 6. | Investments. |
Not Applicable.
Item 7. | Disclosure Of Proxy Voting Policies And Procedures ForClosed-End Management Investment Companies. |
Not Applicable.
Item 8. | Portfolio Managers ofClosed-End Management Investment Companies. |
Not Applicable.
Item 9. | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors.
Item 11. | Controls and Procedures. |
(a) | The Fund’s principal executive officer and principal financial officer have concluded, based on their evaluation conducted as of a date within 90 days of the filing of this report, that the Fund’s disclosure controls and procedures are adequately designed and are operating effectively to ensure (i) that material information relating to the Fund, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared; and (ii) that information required to be disclosed by the Fund on FormN-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
(b) | There were no changes in the Fund’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities forClosed-End Management Investment Companies. |
Not Applicable.
Item 13. | Exhibits. |
(a)(1) | The Fund’s Code of Ethics pursuant to Item 2 of FormN-CSR is filed and attached hereto asEX-99.CODE. |
(a)(2) | A separate certification for each principal executive officer and principal financial officer of the Fund as required by Rule30a-2(a) under the Investment Company Act of 1940 (17 CFR270.30a-2(a)) is attached hereto asEX-99.CERT. |
The certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto asEX-99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Ohio National Fund, Inc.
By: | /s/ Michael J. DeWeirdt | |
Michael J. DeWeirdt | ||
President | ||
(Principal Executive Officer) | ||
March 6, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Ohio National Fund, Inc.
By: | /s/ Michael J. DeWeirdt | |
Michael J. DeWeirdt | ||
President | ||
(Principal Executive Officer) | ||
March 6, 2019 | ||
By: | /s/ R. Todd Brockman | |
R. Todd Brockman | ||
Treasurer | ||
(Principal Financial Officer) | ||
March 6, 2019 |