Welcome To OneAmerica Funds

A Message From The Fund President

Welcome to the OneAmerica Funds website. OneAmerica Funds, Inc. has been in operation since 1989 and currently offers five portfolios: Value, Money Market, Investment Grade Bond, Asset Director and Socially Responsive. This website includes financial information, prospectuses and annual reports for each portfolio as well as insights from each portfolio's investment managers. I trust that you will find this information useful as you review your investments.

2014 was a transition year for the U.S. economy and markets. The Federal Reserve committed to ending its asset purchase program, which it did in October. Meanwhile, the economies in Europe and Japan continue to stumble and are considering or engaging in new asset purchase programs in the hopes of stimulating economic growth and fending off deflation. This divergence in expectations has exposed imbalances in certain markets. The US dollar has strengthened materially while major commodities including oil and industrial metals have declined precipitously.

The U.S. stock markets performed well again in 2014 all things considered. Bonds performed well also and yields declined materially over the course of 2014. Lower yields reflect low inflation and muted domestic economic growth prospects as well as the competitiveness of our interest rates globally and expectations of a stronger U.S. dollar, both of which are attracting foreign capital.

An Overview of OneAmerica Funds, Inc. Performance

OneAmerica Funds, Inc. is comprised of five portfolios, each with a different directive:

  • The Value Portfolio is an equity portfolio utilizing a multi-cap, value approach;
  • The investment objectives of the Money Market Portfolio are to provide current income, preserve assets and maintain liquidity;
  • The Investment Grade Bond Portfolio focuses primarily on intermediate investment grade bonds;
  • The Asset Director Portfolio is a managed portfolio investing in stocks, bonds and cash based on our outlook for these various asset classes;
  • And finally, the Socially Responsive Portfolio typically invests in financially strong companies that also adhere to specific moral beliefs.

Investment performance for each portfolio in OneAmerica Funds, Inc. has been listed below for the 2014 calendar year. I encourage your careful review of the portfolio managers’ comments on the following pages as they will provide additional insight into the market environment and specific drivers of portfolio investment performance.

Portfolio                                                         Class O                       Advisor Class

Value Portfolio                                                 11.2%                                 10.8%

Money Market Portfolio                                     0.0%                                    0.0%

Investment Grade Bond Portfolio                      5.5%                                   5.2%

Asset Director Portfolio                                     8.9%                                    8.5%

Socially Responsive Portfolio                           9.2%                                    8.9%

Performance numbers for the OneAmerica portfolios are net of investment advisory fees and other expenses paid by each portfolio, but do not reflect specified contract charges and mortality and expense risk charges.

Management Update

After serving as President of OneAmerica Funds, Inc. since 2008, J. Scott Davison stepped down from this role in August to focus on his broader role as President and Chief Executive Officer of the companies of OneAmerica. It is my pleasure to assume the role of President and I look forward to serving you in this capacity going forward.

Given the divergence in economic prospects and policy courses among major economies, 2015 is shaping up to be an interesting time for investors. We remain steadfastly committed to our core belief in a disciplined, long-term, research-based investment approach – designed to support your financial future. As the new President of OneAmerica Funds, I extend my gratitude to you for continuing to place your confidence in us by investing in OneAmerica Funds, Inc.

 

John C. Mason President                                                                                                                                                                                 OneAmerica Funds, Inc.

February 16, 2015