NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
AMIDEXTM Funds, Inc. (the “Company”) was incorporated under the laws of the state of Maryland on April 27, 1999, and currently consists of two active portfolios, the AMIDEX35TM Israel Mutual Fund, and the AMIDEXTM Cancer Innovations & Healthcare Fund (each a “Fund” and collectively the “Funds”). The Funds are non-diversified Funds. The Company is registered as an open-end management investment company under the Investment Company Act of 1940 (the “1940 Act”). The Funds were registered to offer four classes of shares, Class A, Class B, Class C and No-load class, with only the Class A, Class C and No-load shares currently being offered in the AMIDEX35 TM Israel Mutual Fund and only Class A shares being offered in the AMIDEXTM Cancer Innovations & Healthcare Fund. Each class differs as to sales and redemption charges, minimum investment amounts and ongoing fees. Income and realized/unrealized gains or losses are allocated to each class based on relative share balances. The Funds’ investment objectives are long term growth of capital. The AMIDEX35TM Israel Mutual Fund became effective with the SEC on April 27, 1999 and commenced operations on June 8, 1999. The AMIDEXTM Cancer Innovations & Healthcare Fund became effective with the SEC on August 1, 2001 and commenced operations on November 1, 2001.
The following is a summary of significant accounting policies consistently followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.
a) Investment Valuation—A portfolio security listed or traded on an exchange in domestic or international markets is valued at the last reported sale price of the primary exchange on which it trades before the time when the fund values assets. Lacking any sales on the principal exchange that day, the security is valued at the mean between the last reported bid and ask prices, if available. Securities traded on more than one market are valued using the market identified as primary based on trading volume and activity. Equity securities traded on the NASDAQ National Market System are valued at the NASDAQ Official Closing Price. If there are no sales that day, such securities will be valued at the mean between the bid and ask quotation, if available. Other over-the-counter securities are valued at the last sale price, if published, or the mean between the last bid and ask quotation, if available. Debt securities with maturities of sixty days or less at the time of purchase are valued based on amortized cost. If market quotations are not readily available, or when the portfolio management team believes that a readily available market quotation or other valuation produced by the fund's valuation policies is not reliable, the fund values the assets at fair value using procedures established by the Board of Directors. The Board members have delegated pricing authority to the fair valuation committee of the adviser, for certain pricing issues, as defined in the valuation procedures. Events affecting the value of securities that occur between the time prices are established and the New York Stock Exchange closes are not reflected in the calculation of net asset value unless the fair valuation committee decides that the event would materially affect the net asset value. If the event would materially affect the fund's net asset value, the security will be fair valued by the fair valuation committee or, at its discretion, by an independent fair valuation vendor. At May 31, 2008, no securities were valued as determined by the Board of Directors.
b) Foreign Currency Translation—Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities and income items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest and foreign withholding taxes, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign currency denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c) Federal Income Taxes—No provision for federal income taxes has been made since the AMIDEX35TM Israel Mutual Fund and the AMIDEXTM Cancer Innovations & Healthcare Fund have complied to date with sub-chapter M of the Internal Revenue Code applicable to regulated investment companies and intends to so comply in the future and to distribute all of its net investment income and realized capital gains to its shareholders.
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
Effective November 30, 2007, the Funds adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), “Accounting for Uncertainty in Income Taxes”, a clarification of FASB No. 109, “Accounting for Income Taxes”. FIN 48 establishes financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. FIN 48 was applied to all open tax years as of the effective date. The adoption of FIN 48 had no impact on the Funds’ net assets or results of operations.
As of and during the period ended May 31, 2008, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statements of operations. During the period, the Funds did not incur any interest or penalties.
d) Distributions to Shareholders—Dividends from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. Income and capital gain distributions, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Accounting principles generally accepted in the United States of America require that permanent financial reporting differences relating to shareholder distributions be reclassified to paid-in capital or net realized gain.
e) Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
f) Redemption fees and sales charges (loads)—Shareholders of AMIDEX35 TM Israel Mutual Fund No-load shares that redeem shares within 365 days of purchase will be assessed a redemption fee of 2.00% of the amount redeemed. The redemption fee is paid directly to and retained by the Fund, and is designed to deter excessive short-term trading and to offset brokerage commissions, market impact and other costs that may be associated with short-term money movement in and out of the Fund. A maximum sales charge of 5.00% is imposed on Class A shares of the AMIDEX35 TM Israel Mutual Fund and the AMIDEXTM Cancer Innovations & Healthcare Fund. Shareholders of the AMIDEX35 TM Israel Mutual Fund Class C shares are imposed a contingent deferred sales charge (“CDSC”) of 1.00% in the event of certain redemption transactions within thirteen months following such investments. The CDSC is paid directly to the Adviser to reimburse expenses incurred in providing distribution-related services to the Fund. For the fiscal year ended May 31, 2008, there were redemption fees of $15,114 paid to the AMIDEX35 TM Israel Mutual Fund and CDSC fees of $142 paid to the Adviser.
g) Other—Investment and shareholder transactions are recorded on trade date. The Funds determine the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sales proceeds. Dividend income is recognized on the ex-dividend date or as soon as information is available to the Fund and interest income is recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157 “Fair Value Measurements”. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosure about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of May 31, 2008, the Funds do not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements reported on the statement of changes in net assets for a fiscal period.
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
2. | CAPITAL SHARE TRANSACTIONS |
Transactions in shares of capital stock for the AMIDEX35TM Israel Mutual Fund for the year ended May 31, 2008 were as follows:
| | | No-load | |
| | | Shares | | Amount | |
| Sold | | | 189,982 | | $ | 2,926,746 | |
| Reinvested | | | 361 | | | 5,812 | |
| Redeemed | | | (143,851 | ) | | (2,175,623 | ) |
| Net Increase | | | 46,492 | | $ | 756,935 | |
| | | Class A | |
| | | Shares | | Amount | |
| Sold | | | 125,237 | | $ | 1,457,484 | |
| Reinvested | | | 447 | | | 5,552 | |
| Redeemed | | | (68,596 | ) | | (811,256 | ) |
| Net Increase | | | 57,088 | | $ | 651,780 | |
| | | Class C | |
| | | Shares | | Amount | |
| Sold | | | 33,459 | | $ | 296,817 | |
| Redeemed | | | (7,786 | ) | | (68,775 | ) |
| Net Increase | | | 25,673 | | $ | 228,042 | |
Transactions in shares of the AMIDEXTM Cancer Innovations & Healthcare Fund for the year ended May 31, 2008 were as follows:
| | | Class A | |
| | | Shares | | Amount | |
| Sold | | | 23,697 | | $ | 190,677 | |
| Reinvested | | | 16,722 | | | 135,945 | |
| Redeemed | | | (30,286 | ) | | (312,865 | ) |
| Net Increase | | | 10,133 | | $ | 13,757 | |
Transactions in shares of capital stock for the AMIDEX35TM Israel Mutual Fund for the year ended May 31, 2007 were as follows:
| | | No-load | |
| | | Shares | | Amount | |
| Sold | | | 191,318 | | $ | 2,485,848 | |
| Redeemed | | | (117,140 | ) | | (1,447,633 | ) |
| Net Increase | | | 74,178 | | $ | 1,038,215 | |
| | | Class A | |
| | | Shares | | Amount | |
| Sold | | | 104,211 | | $ | 1,115,942 | |
| Redeemed | | | (208,123 | ) | | (1,922,931 | ) |
| Net Decrease | | | (103,912 | ) | $ | (806,989 | ) |
| | | Class C | |
| | | Shares | | Amount | |
| Sold | | | 22,851 | | $ | 171,647 | |
| Redeemed | | | (32,397 | ) | | (231,805 | ) |
| Net Decrease | | | (9,546 | ) | $ | (60,158 | ) |
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
2. | CAPITAL SHARE TRANSACTIONS (continued) |
Transactions in shares of the AMIDEXTM Cancer Innovations & Healthcare Fund for the year ended May 31, 2007 were as follows:
| | | Class A | |
| | | Shares | | Amount | |
| Sold | | | 6,646 | | $ | 74,018 | |
| Reinvested | | | 4,185 | | | 45,328 | |
| Redeemed | | | (35,095 | ) | | (396,195 | ) |
| Net Decrease | | | (24,264 | ) | $ | (276,849 | ) |
3. INVESTMENT TRANSACTIONS
For the year ended May 31, 2008, aggregate purchases and sales of investment securities (excluding short-term investments) for each Fund were as follows:
| | | Purchases | | Sales | |
AMIDEX35TM Israel Mutual Fund | | $ | 321,400 | | $ | 170,519 | |
AMIDEXTM Cancer Innovations & Healthcare Fund | | | 9,601 | | | 306,638 | |
There were no government securities purchased or sold during the year.
4. | ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS |
Effective October 1, 2003, the Funds have entered into an Advisory Agreement with Index Investments, LLC (“II”) to provide investment management services to the Funds. II furnishes, at its own expense, office space to the Funds and all necessary office facilities, equipment and personnel for managing the assets of the Funds. II also pays all expenses of marketing shares of the Funds and related bookkeeping. Pursuant to the Advisory Agreement, II is entitled to receive a fee, calculated daily and payable monthly at the annual rate of 0.80% as applied to the Funds’ daily net assets. For the year ended May 31, 2008, the AMIDEX35TM Israel Mutual Fund incurred $141,350 of advisory fees, with $11,180 remaining payable at May 31, 2008. For the year ended May 31, 2008, the AMIDEXTM Cancer Innovations & Healthcare Fund incurred $5,576 of advisory fees, with $365 remaining payable at May 31, 2008.
Effective October 1, 2003, the Funds have entered into an Administrative Services Agreement (“ASA”) with II to provide administrative services to the Funds. Pursuant to the ASA, II is entitled to receive a fee, calculated daily and payable monthly at the annual rate of 0.10% as applied to the Funds’ daily net assets. For the year ended May 31, 2008, the AMIDEX35TM Israel Mutual Fund incurred $17,669 of administrative fees, with $1,703 remaining payable at May 31, 2008. For the year ended May 31, 2008, the AMIDEXTM Cancer Innovations & Healthcare Fund incurred $697 of administrative fees, with $54 remaining payable at May 31, 2008.
One director of the Funds is also an Officer of II.
The Funds have entered into an Investment Company Services Agreement (“ICSA”) with Matrix Capital Group, Inc. (“Matrix”). Pursuant to the ICSA, Matrix will provide day-to-day operational services to the Funds including, but not limited to, accounting, administrative, transfer agent, dividend disbursement, registrar and record keeping services. For its services, Matrix receives $11,000 per month which is allocated to the Funds based on their respective average daily net assets. For the year ended May 31, 2008, Matrix earned $132,187 with $11,144 remaining payable at May 31, 2008.
Certain Officers of the Funds are also employees of Matrix.
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
4. | ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS (continued) |
The Funds and II have entered into a Distribution Agreement with Matrix Capital Group, Inc. Pursuant to the Distribution Agreement, Matrix will provide distribution services to the Funds. Matrix serves as underwriter/distributor of the Funds. Pursuant to the Distribution Agreement, Matrix receives $20,000 per year from the Funds allocated based on their respective average daily net assets. Matrix also receives commissions from the sale of Class A Fund shares for which they are the broker of record. The allocated distribution fees are reduced by the amount of commissions received and the remainder is paid from the accruals pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the year ended May 31, 2008, Matrix received net distribution fees of $14,958 and $406 from the AMIDEX35TM Israel Mutual Fund and the AMIDEXTM Cancer Innovations & Healthcare Fund, respectively. For the year ended May 31, 2008, Matrix received commissions from the sale of Fund shares of $3,728 and $908 from the AMIDEX35TM Israel Mutual Fund Class A and the AMIDEXTM Cancer Innovations & Healthcare Fund Class A, respectively.
A separate plan of distribution has been adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940 for each class of shares. With respect to Class A and the No-load class of shares, the plan provides that the Funds may pay a servicing or Rule 12b-1 fee of up to 0.25% annually of the Funds' average net assets attributable to each class of shares, respectively, and up to 1.00% annually of the Funds’ average net assets attributable to Class C shares to persons or institutions for performing certain servicing functions for the Funds' shareholders. The distribution plans are compensation plans, which also allow the Funds to pay or reimburse expenditures in connection with sales, and promotional services related to distribution of the Funds' shares, including personal services provided to prospective and existing shareholders.
The distribution plans for the shares in the AMIDEX35TM Israel Mutual Fund Class A, the No-load class and Class C took effect November 19, 1999, June 8, 1999 and May 19, 2000, respectively. The distribution plan for the Class A shares in the AMIDEXTM Cancer Innovations & Healthcare Fund took effect November 1, 2001. For the year ended May 31, 2008, the AMIDEX35TM Israel Mutual Fund incurred $51,682 in 12b-1 fees with $10,430 remaining payable at May 31, 2008. For the year ended May 31, 2008, the AMIDEXTM Cancer Innovations & Healthcare Fund incurred $1,743 in 12b-1 fees with $962 remaining payable at May 31, 2008.
The tax character of distributions paid for the years ended May 31, 2008 and May 31, 2007 were as follows:
| | | 2008 | |
| | | Ordinary Income | | Long-Term Capital Gains | |
AMIDEX35TM Israel Mutual Fund | | $ | 12,529 | | $ | - | |
AMIDEXTM Cancer Innovations & Healthcare Fund | | | - | | | 167,180 | |
| | | 2007 | |
| | | Ordinary Income | | Long-Term Capital Gains | |
AMIDEXTM Cancer Innovations & Healthcare Fund | | $ | - | | $ | 54,390 | |
There were no distributions during the fiscal year ended May 31, 2007 for the AMIDEX35TM Israel Mutual Fund.
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
5. | TAX MATTERS (continued) |
As of May 31, 2008, the Funds’ most recent fiscal year end, the components of distributable earnings on a tax basis were as follows:
| | | AMIDEX35TM Israel Mutual Fund | | AMIDEXTM Cancer Innovations & Healthcare Fund | |
| Cost of investments for tax purposes | | $ | 16,432,472 | | $ | 640,988 | |
| Unrealized Appreciation / (Depreciation): | | | | | | | |
| Gross Appreciation | | | 10,268,432 | | | 147,531 | |
| Gross Depreciation | | | (5,198,747 | ) | | (114,803 | ) |
| Net Unrealized Appreciation / (Depreciation) | | $ | 5,069,685 | | $ | 32,728 | |
| | | | | | | | |
| Undistributed Long-term Capital Gain | | | - | | | 73,614 | |
| Capital Loss Carryforwards | | | (5,810,550 | ) | | - | |
| Distributable Earnings, Net | | $ | (740,865 | ) | $ | 106,342 | |
The difference between book basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales for the AMIDEX35TM Israel Mutual Fund.
As of May 31, 2008 the Funds had capital loss carryforwards available for federal income tax purposes as follows:
| | | AMIDEX35TM Israel Mutual Fund | | AMIDEXTM Cancer Innovations & Healthcare Fund | |
| Expiring in: 2010 | | $ | (1,720,156 | ) | $ | - | |
| Expiring in: 2011 | | $ | (100,824 | ) | $ | - | |
| Expiring in: 2012 | | $ | (1,246,393 | ) | $ | - | |
| Expiring in: 2013 | | $ | (323,400 | ) | $ | - | |
| Expiring in: 2014 | | $ | (1,409,903 | ) | $ | - | |
| Expiring in: 2015 | | $ | (1,009,874 | ) | $ | - | |
At May 31, 2008, the AMIDEX35 TM Israel Mutual Fund had available for federal income tax purposes unused capital loss carryforwards of $5,810,550, which is available for offset against future capital gains, the use of a portion of which is limited by IRS regulations. To the extent this loss carryforward is used to offset future capital gains, it is probable that the amount offset will not be distributed to shareholders.
6. | RECLASS OF CAPITAL ACCOUNTS |
In accordance with accounting pronouncements, the Fund has recorded reclassifications in the capital accounts. These reclassifications have no impact on the net asset value of the Fund and are designed generally to present undistributed net investment income and paid-in capital on a tax basis which is considered to be more informative to the shareholder. As of May 31, 2008, the Fund recorded reclassifications to increase (decrease) the capital accounts as follows:
| | | Net Investment Loss | | Paid-in Capital | | Accumulated Capital Gains | |
| | | | | | | | |
AMIDEX35TM Israel Mutual Fund | | $ | 17,759 | | $ | (16,079 | ) | $ | (1,680 | ) |
AMIDEXTM Cancer Innovations & Healthcare Fund | | $ | 25,244 | | $ | (25,244 | ) | | - | |
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
The AMIDEX35TM Israel Mutual Fund invests exclusively in common stock of Israeli companies. Investing in the companies from one geographic region may pose additional risks inherent to a region's economical and political situation.
A large portion of investments held by AMIDEX35TM Israel Mutual Fund are considered investments in the technology sector of the market. All investments in common stock held by AMIDEXTM Cancer Innovations & Healthcare Fund are identified as belonging to the healthcare sector of the market. Investing in a single market sector may be riskier than investing in a variety of market sectors.
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940. As of May 31, 2008, FTC & Co. Datalynx and Merrill Lynch Pierce, Fenner & Smith, Inc. held 31.26% and 27.75% respectively, of AMIDEX35TM Israel Mutual Fund Class A shares in omnibus accounts for the sole benefit of their customers. As of May 31, 2008, Merrill Lynch Pierce, Fenner & Smith, Inc. held 49.42% of AMIDEX35TM Israel Mutual Fund Class C shares in an omnibus account for the sole benefit of their customers.
As of May 31, 2008, Merrill Lynch Pierce, Fenner & Smith, Inc. held 32.69% of AMIDEXTM Cancer Innovations & Healthcare Fund Class A shares in an omnibus account for the sole benefit of their customers.
On May 31, 2006, a lawsuit was filed against II, the Adviser, and certain officers/shareholders of II. The complaint was filed by previous shareholders of TransNations Investments, LLC, the Funds’ previous Investment Adviser. The complaint does not involve the AMIDEXTM Funds, Inc. or any of the current independent directors of the Funds. II believes that the pending lawsuit or settlement will not likely materially affect their ability to perform under their Advisory or Administrative Services Agreements with the Funds.
10. | COMMITMENTS AND CONTINGENCIES |
In the normal course of business, the Trust may enter into contracts that may contain a variety of representations and warranties and provide general indemnifications. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, management considers the risk of loss from such claims to be remote.
NOTES TO THE FINANCIAL STATEMENTS
May 31, 2008
Additional Information (Unaudited)
The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Commission’s Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 888-876-3566; and on the Commission’s website at http://www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2007 is available without charge, upon request, by calling 888-876-3566; and on the Commission’s website at http://www.sec.gov.
Shareholder Tax Information - The Funds are required to advise you within 60 days of the Fund’s fiscal year end regarding the federal tax status of distributions received by shareholders during the fiscal year. During the fiscal year ended May 31, 2008, the following dividends and distributions per share were paid by the Funds:
| | | Ordinary Income | | Long-Term Capital Gains | |
AMIDEX35TM Israel Mutual Fund | | | | | | | |
| No Load Class | | $ | 0.007686 | | | - | |
| Class A | | $ | 0.020891 | | | - | |
AMIDEXTM Cancer Innovations & Healthcare Fund | | | - | | $ | 2.99606 | |
Please note that, for the taxable year ended May 31, 2008, the respective percentages of ordinary income distributions paid by the AMIDEX35TM Israel Mutual Fund which consist of qualified dividend income for individuals, are as follows:
| | | Distribution Period | Percentage |
| | | | |
AMIDEX35TM Israel Mutual Fund | | December, 2007 | 100.00% |
The AMIDEXTM Cancer Innovations & Healthcare Fund designated $167,180 (100%) of total distributions paid during the fiscal year ended May 31, 2008 as net capital gain distributions eligible for long-term capital gain rates for individual shareholders.
The tax information above is reported from the Fund’s fiscal year and not calendar year, therefore, shareholders should refer to their Form 1099-DIV or other tax information which will be mailed in 2009 to determine the calendar year amounts to be included on their 2008 tax returns. Shareholders should consult their own tax advisors.
To The Shareholders and
Board of Directors
AMIDEXTM Funds, Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of AMIDEXTM Funds, Inc. (the “Funds”), comprising AMIDEX35TM Israel Mutual Fund and AMIDEXTM Cancer Innovations & Healthcare Fund as of May 31, 2008, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of Fund management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2008, by correspondence with the Funds’ custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of each of the Funds constituting the AMIDEXTM Funds, Inc. as of May 31, 2008, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Cohen Fund Audit Services, Ltd.
Westlake, Ohio
July 24, 2008
