BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
CONSUMER PRODUCTS FUND
ELECTRONICS FUND
ENERGY FUND
SEPTEMBER 30, 2007
RYDEX SERIES FUNDS SECTOR FUNDS SEMI-ANNUAL REPORT
ENERGY SERVICES FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
INTERNET FUND
LEISURE FUND
PRECIOUS METALS FUND
RETAILING FUND
TECHNOLOGY FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
UTILITIES FUND
This report and the financial statements contained herein are submitted for the general information of our shareholders. The
report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
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2
ABOUT SHAREHOLDERS’ FUND EXPENSES
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3
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8
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17
STATEMENTS OF ASSETS AND LIABILITIES
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40
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44
STATEMENTS OF CHANGES IN NET ASSETS
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48
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80
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
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85
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
1
DEAR SHAREHOLDER:
The second and third quarters of 2007 represented one of the most challenging environments for investors in
recent memory. The major market averages started off the period by setting new highs only to dramatically
change course in a four-week period from mid-July to mid-August by staging a gut-wrenching decline. From
there, equity markets embarked on a spectacular rally, retracing almost all of their earlier losses by the end of
September. During this period, global credit markets seized up, and interest rates on super-safe U.S. Treasury
securities fell while interest rates on everything else rose. Investors were right to ask what was happening.
What was happening was that the democratization of credit and its dispersion throughout the global financial
system was showing its nastier side. Reckless home lending practices here in the U.S. found their way into
financial markets across the globe through an array of highly engineered securities with acronyms such as CDOs,
CLOs and CMOs. Regardless of the moniker, the common thread was that by over-collateralizing low-quality
debt, as if by alchemy, vast pools of low-quality mortgages could be transformed from junk status into AAA fixed-
income securities.
Hedge funds purchased vast quantities of these structured products and leveraged this seemingly secure income
stream in order to maximize returns. The problem was that Wall Street did not fully take into account how much
the creditworthiness of home buyers had deteriorated in an era of loose underwriting standards. As rising
defaults began to eat into collateral, rating agencies rushed to downgrade large swaths of the mortgage-backed
bond market, sparking a stampede for the door.
Hedge funds were unable to meet redemption requests as investors backed away from credit exposure of all
kinds. A classic credit squeeze began to unfold as buyers disappeared and lenders, not knowing where subprime
risk resided, refused to lend.
With hedge funds failing and credit markets beginning to shut down, central banks stepped in to restore order to
the credit markets. Unfortunately, this backfired and the equity markets recoiled. Midcaps, international stocks,
energy, materials and consumer discretionary stocks all declined by double digit rates as investors attempted to
limit their exposure to the global financial system and to the U.S. consumer who looked to be going into shock.
In this environment, short-term rates came screaming down and credit spreads exploded wider as investors ran
for the safety of short maturity government debt.
The events of August ushered in the most profound development of the period—a change in monetary policy by
the Federal Reserve (“Fed”). For the first time in four years, the Fed cut the benchmark Fed Funds target rate.
Given the events leading up to this, the Fed’s September move was not unanticipated. What was a surprise,
however, was the magnitude of the move. The central bank dropped the Fed Funds rate by a half-point to 4.75%.
With that, the markets exploded in a massive rally that brought the averages almost back to where they had
started the quarter. Moreover, all the sectors that had been pummeled during the previous four weeks led the
way higher. Having suffered through the roughest market in years, investment managers were determined not to
miss the rebound.
One of the investment themes that strongly reasserted itself after the July–August sell-off was global growth.
With economic growth in the U.S. slowing, investors are favoring sectors—such as energy, technology and basic
materials—that derive much of their revenues and profits from overseas. For investors who had the fortitude to
maintain their exposure to Rydex sector funds representing those areas over the last six months, they were
handsomely rewarded with strong double digit-returns.
We also think it is very reasonable to assume that equity market volatility will be with us for some time. Low
volatility strategies as represented by the Rydex Absolute Return Strategies, Hedged Equity and Managed
Futures Strategy Funds should provide a nice offset to the more dynamic global growth theme.
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.
Sincerely,
David C. Reilly, CFA
Director of Portfolio Strategies
2
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)
All mutual funds have operating expenses and it is important for our shareholders to understand the
impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or other distributions;
redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative
services, and shareholder reports, among others. These ongoing costs, or operating expenses, are
deducted from a fund’s gross income and reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense
ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of
investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 made at the beginning of the period and held for
the entire six-month period beginning March 31, 2007 and ending September 30, 2007.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid
over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the
fourth column shows the dollar amount that would have been paid by an investor who started with
$1,000 in the Fund. Investors may use the information here, together with the amount invested, to esti-
mate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for exam-
ple, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided
under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s
cost with those of other mutual funds. The table provides information about hypothetical account val-
ues and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return
of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values
and expenses may not be used to estimate the actual ending account balance or expenses paid during
the period. The example is useful in making comparisons because the U.S. Securities and Exchange
Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return.
Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical exam-
ples that appear in shareholder reports of other funds.
Certain retirement plans such as IRA, SEP, Roth IRA and 403(b) accounts are charged an annual $15
maintenance fee. Upon liquidating a retirement account, a $15 account-closing fee will be taken from
the proceeds of the redemption.
The calculations above assume no shares were bought or sold during the period. Actual costs may have
been higher or lower, depending on the amount of investment and the timing of any purchases or
redemptions.
Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only
and do not reflect any transactional costs which may be incurred by a Fund.
More information about a Fund’s expenses, including annual expense ratios for the past five years, can be
found in the Financial Highlights section of this report. For additional information on operating expenses
and other shareholder costs, please refer to the appropriate Fund prospectus.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
3
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)
Beginning
Ending
Expenses
Expense
Account Value
Account Value
Paid During
Ratio†
March 31, 2007
September 30, 2007
Period*
Table 1. Based on actual Fund return
Banking Fund
Investor Class
1.38%
$1,000.00
$
923.80
$
6.64
Advisor Class
1.85%
1,000.00
922.00
8.93
A-Class
1.55%
1,000.00
923.60
7.46
C-Class
2.37%
1,000.00
920.20
11.41
Basic Materials Fund
Investor Class
1.37%
1,000.00
1,184.10
7.50
Advisor Class
1.86%
1,000.00
1,181.00
10.19
A-Class
1.62%
1,000.00
1,182.50
8.88
C-Class
2.37%
1,000.00
1,178.10
12.92
Biotechnology Fund
Investor Class
1.41%
1,000.00
1,128.20
7.51
Advisor Class
1.91%
1,000.00
1,125.70
10.16
A-Class
1.65%
1,000.00
1,127.10
8.81
C-Class
2.40%
1,000.00
1,122.30
12.76
Consumer Products Fund
Investor Class
1.36%
1,000.00
1,052.30
7.01
Advisor Class
1.87%
1,000.00
1,049.60
9.60
A-Class
1.61%
1,000.00
1,050.70
8.26
C-Class
2.35%
1,000.00
1,047.00
12.08
Electronics Fund
Investor Class
1.37%
1,000.00
1,101.10
7.19
Advisor Class
1.86%
1,000.00
1,098.50
9.81
A-Class
1.62%
1,000.00
1,099.20
8.53
C-Class
2.39%
1,000.00
1,096.30
12.57
Energy Fund
Investor Class
1.37%
1,000.00
1,200.90
7.53
Advisor Class
1.87%
1,000.00
1,197.80
10.29
A-Class
1.62%
1,000.00
1,199.20
8.93
C-Class
2.36%
1,000.00
1,195.30
13.00
Energy Services Fund
Investor Class
1.37%
1,000.00
1,273.20
7.81
Advisor Class
1.87%
1,000.00
1,270.30
10.64
A-Class
1.62%
1,000.00
1,271.90
9.24
C-Class
2.37%
1,000.00
1,267.00
13.45
Financial Services Fund
Investor Class
1.37%
1,000.00
944.60
6.70
Advisor Class
1.86%
1,000.00
942.60
9.06
A-Class
1.62%
1,000.00
944.30
7.91
C-Class
2.36%
1,000.00
940.60
11.50
Health Care Fund
Investor Class
1.37%
1,000.00
1,058.90
7.07
Advisor Class
1.86%
1,000.00
1,056.20
9.60
A-Class
1.62%
1,000.00
1,057.30
8.33
C-Class
2.36%
1,000.00
1,053.70
12.14
4
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)
Beginning
Ending
Expenses
Expense
Account Value
Account Value
Paid During
Ratio†
March 31, 2007
September 30, 2007
Period*
Internet Fund
Investor Class
1.38%
$1,000.00
$1,171.50
$
7.52
Advisor Class
1.86%
1,000.00
1,168.60
10.11
A-Class
1.63%
1,000.00
1,170.10
8.86
C-Class
2.37%
1,000.00
1,165.80
12.89
Leisure Fund
Investor Class
1.38%
1,000.00
1,056.00
7.11
Advisor Class
1.88%
1,000.00
1,053.90
9.67
A-Class
1.59%
1,000.00
1,055.40
8.22
C-Class
2.38%
1,000.00
1,051.10
12.22
Precious Metals Fund
Investor Class
1.27%
1,000.00
1,171.50
6.90
Advisor Class
1.76%
1,000.00
1,168.70
9.58
A-Class
1.52%
1,000.00
1,170.20
8.26
C-Class
2.26%
1,000.00
1,165.50
12.29
Retailing Fund
Investor Class
1.37%
1,000.00
932.30
6.65
Advisor Class
1.86%
1,000.00
930.60
9.02
A-Class
1.61%
1,000.00
932.30
7.82
C-Class
2.36%
1,000.00
928.00
11.42
Technology Fund
Investor Class
1.37%
1,000.00
1,148.40
7.36
Advisor Class
1.88%
1,000.00
1,146.10
10.11
A-Class
1.61%
1,000.00
1,147.20
8.68
C-Class
2.36%
1,000.00
1,142.40
12.67
Telecommunications Fund
Investor Class
1.37%
1,000.00
1,170.90
7.48
Advisor Class
1.87%
1,000.00
1,167.80
10.15
A-Class
1.58%
1,000.00
1,169.60
8.61
C-Class
2.36%
1,000.00
1,165.10
12.83
Transportation Fund
Investor Class
1.37%
1,000.00
974.30
6.77
Advisor Class
1.87%
1,000.00
971.90
9.23
A-Class
1.62%
1,000.00
973.20
8.00
C-Class
2.36%
1,000.00
969.70
11.67
Utilities Fund
Investor Class
1.37%
1,000.00
995.90
6.83
Advisor Class
1.86%
1,000.00
993.80
9.29
A-Class
1.62%
1,000.00
994.50
8.12
C-Class
2.37%
1,000.00
990.90
11.83
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
5
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)
Beginning
Ending
Expenses
Expense
Account Value
Account Value
Paid During
Ratio†
March 31, 2007
September 30, 2007
Period*
Table 2. Based on hypothetical 5% return
Banking Fund
Investor Class
1.38%
$1,000.00
$1,018.06
$
7.01
Advisor Class
1.85%
1,000.00
1,015.68
9.39
A-Class
1.55%
1,000.00
1,017.20
7.87
C-Class
2.37%
1,000.00
1,013.04
12.03
Basic Materials Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.37%
1,000.00
1,013.04
12.03
Biotechnology Fund
Investor Class
1.41%
1,000.00
1,017.91
7.16
Advisor Class
1.91%
1,000.00
1,015.37
9.70
A-Class
1.65%
1,000.00
1,016.69
8.38
C-Class
2.40%
1,000.00
1,012.88
12.18
Consumer Products Fund
Investor Class
1.36%
1,000.00
1,018.16
6.90
Advisor Class
1.87%
1,000.00
1,015.58
9.49
A-Class
1.61%
1,000.00
1,016.90
8.17
C-Class
2.35%
1,000.00
1,013.14
11.93
Electronics Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.39%
1,000.00
1,012.94
12.13
Energy Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.87%
1,000.00
1,015.58
9.49
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.36%
1,000.00
1,013.09
11.98
Energy Services Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.87%
1,000.00
1,015.58
9.49
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.37%
1,000.00
1,013.04
12.03
Financial Services Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.36%
1,000.00
1,013.09
11.98
Health Care Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.36%
1,000.00
1,013.09
11.98
6
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)
Beginning
Ending
Expenses
Expense
Account Value
Account Value
Paid During
Ratio†
March 31, 2007
September 30, 2007
Period*
Internet Fund
Investor Class
1.38%
$1,000.00
$1,018.06
$
7.01
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.63%
1,000.00
1,016.79
8.27
C-Class
2.37%
1,000.00
1,013.04
12.03
Leisure Fund
Investor Class
1.38%
1,000.00
1,018.06
7.01
Advisor Class
1.88%
1,000.00
1,015.52
9.54
A-Class
1.59%
1,000.00
1,017.00
8.07
C-Class
2.38%
1,000.00
1,012.99
12.08
Precious Metals Fund
Investor Class
1.27%
1,000.00
1,018.62
6.45
Advisor Class
1.76%
1,000.00
1,016.13
8.93
A-Class
1.52%
1,000.00
1,017.35
7.72
C-Class
2.26%
1,000.00
1,013.60
11.47
Retailing Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.61%
1,000.00
1,016.90
8.17
C-Class
2.36%
1,000.00
1,013.09
11.98
Technology Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.88%
1,000.00
1,015.52
9.54
A-Class
1.61%
1,000.00
1,016.90
8.17
C-Class
2.36%
1,000.00
1,013.09
11.98
Telecommunications Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.87%
1,000.00
1,015.58
9.49
A-Class
1.58%
1,000.00
1,017.05
8.02
C-Class
2.36%
1,000.00
1,013.09
11.98
Transportation Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.87%
1,000.00
1,015.58
9.49
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.36%
1,000.00
1,013.09
11.98
Utilities Fund
Investor Class
1.37%
1,000.00
1,018.11
6.95
Advisor Class
1.86%
1,000.00
1,015.63
9.44
A-Class
1.62%
1,000.00
1,016.84
8.22
C-Class
2.37%
1,000.00
1,013.04
12.03
*
Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by
the number of days in the most recent fiscal half-year, then divided by 365.
†
Annualized
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
7
BANKING FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the banking sector, including
commercial banks (and their holding companies) and saving and loan institutions.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Capital Markets
Investor Class
April 1, 1998
8%
Advisor Class
April 1, 1998
Diversified Financial
A-Class
September 1, 2004
Services
C-Class
March 30, 2001
10%
Ten Largest Holdings
(% of Total Net Assets)
Commercial
JPMorgan Chase & Co.
5.0%
Mortgage
Banks
Thrifts &
HSBC Holdings PLC — SP ADR
4.9%
Finance
Bank of America Corp.
4.8%
63%
19%
Wells Fargo & Co.
4.6%
ABN AMRO Holding NV — SP ADR
4.2%
UBS AG — SP ADR
4.2%
Wachovia Corp.
4.1%
Credit Suisse Group — SP ADR
3.6%
Barclays PLC — SP ADR
3.5%
42.0%
Banking Fund
U.S. Bancorp
3.1%
Top Ten Total
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
temporary cash investments.
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
BASIC MATERIALS FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies engaged in the mining, manufacture or sale of basic
materials, such as lumber, steel, iron, aluminum, concrete, chemicals and other basic building and manufacturing materials.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Construction
Investor Class
April 1, 1998
Materials
5%
Other
Advisor Class
April 14, 1998
Containers &
5%
Packaging
A-Class
September 1, 2004
8%
C-Class
May 3, 2001
Ten Largest Holdings
(% of Total Net Assets)
ArcelorMittal
4.2%
Metals &
Rio Tinto PLC — SP ADR
3.5%
Mining
Chemicals
Monsanto Co.
2.9%
39%
Gold, Inc. — Class B
2.6%
43%
Freeport-McMoRan Copper &
Barrick Gold Corp.
2.5%
Southern Copper Corp.
2.5%
Potash Corporation of Saskatchewan
2.5%
E.I. du Pont de Nemours and Co.
2.4%
Alcan, Inc.
Basic Materials Fund
2.4%
Dow Chemical Co.
2.3%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
27.8%
temporary cash investments.
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
8
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
BIOTECHNOLOGY FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the biotechnology industry, including
related biotechnology products or services.
companies involved in research and development, genetic or biological engineering and in the design, manufacture or sale of
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
April 1, 1998
Advisor Class
April 1, 1998
A-Class
September 1, 2004
C-Class
March 30, 2001
Ten Largest Holdings
(% of Total Net Assets)
Biotechnology
Genentech, Inc.
9.8%
100%
Amgen, Inc.
8.8%
Gilead Sciences, Inc.
6.8%
Celgene Corp.
6.2%
Biogen Idec, Inc.
5.1%
Genzyme Corp.
4.2%
Amylin Pharmaceuticals, Inc.
3.0%
Biotechnology Fund
Vertex Pharmaceuticals, Inc.
2.8%
Cephalon, Inc.
2.2%
ImClone Systems, Inc.
2.1%
Top Ten Total
51.0%
temporary cash investments.
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
CONSUMER PRODUCTS FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies engaged in manufacturing finished goods and services both
domestically and internationally.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
July 6, 1998
Retailing
Food & Staples
5%
Other
Advisor Class
August 17, 1998
9%
A-Class
September 1, 2004
C-Class
July 24, 2001
Ten Largest Holdings
11%
Tobacco
(% of Total Net Assets)
Procter & Gamble Co.
7.7%
34%
Household
Food Products
Coca-Cola Co.
5.8%
Products
Altria Group, Inc.
5.8%
3.8%
17%
PepsiCo, Inc.
5.6%
Diageo PLC — SP ADR
24%
Beverages
Kraft Foods, Inc. — Class A
3.6%
Unilever NV — SP ADR
3.5%
Colgate-Palmolive Co.
3.0%
Anheuser-Busch Cos., Inc.
2.9%
Consumer Products Fund
Kimberly-Clark Corp.
2.8%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
44.5%
temporary cash investments.
temporary cash or derivative investments.
“Ten Largest Holdings” exclude any
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
9
FUND PROFILES (Unaudited) (continued)
ELECTRONICS FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the electronics sector, including
semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
April 1, 1998
Advisor Class
April 2, 1998
A-Class
September 1, 2004
C-Class
March 26, 2001
Ten Largest Holdings
(% of Total Net Assets)
Semiconductor Equipment
Semiconductors &
Intel Corp.
9.1%
Texas Instruments, Inc.
5.1%
Taiwan Semiconductor Manufacturing Co.
100%
Ltd. — SP ADR
4.9%
Applied Materials, Inc.
3.9%
Nvidia Corp.
3.6%
Broadcom Corp. — Class A
3.3%
ASML Holding NV — SP ADR
3.1%
Electronics Fund
STMicroelectronics NV — SP ADR
2.6%
Infineon Technologies AG — SP ADR
2.6%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
MEMC Electronic Materials, Inc.
2.6%
temporary cash investments.
Top Ten Total
40.8%
temporary cash or derivative investments.
“Ten Largest Holdings” exclude any
ENERGY FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies involved in the energy field, including the exploration,
production and development of oil, gas, coal and alternative sources of energy.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
April 21, 1998
Advisor Class
May 5, 1998
A-Class
September 1, 2004
Energy
C-Class
April 19, 2001
Equipment
Ten Largest Holdings
& Services
(% of Total Net Assets)
31%
Exxon Mobil Corp.
7.3%
Oil, Gas &
Chevron Corp.
4.5%
Consumable Fuels
BP PLC — SP ADR
4.4%
69%
ConocoPhillips
3.8%
Royal Dutch Shell PLC — SP ADR
3.7%
Schlumberger Ltd.
3.7%
Occidental Petroleum Corp.
2.3%
Canadian Natural Resources Ltd.
2.1%
Energy Fund
Halliburton Co.
1.9%
Devon Energy Corp.
1.9%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
35.6%
temporary cash investments.
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
10
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
ENERGY SERVICES FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the energy services field, including
those that provide services and equipment in the areas of oil, coal and gas exploration and production.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
April 1, 1998
Advisor Class
April 2, 1998
A-Class
September 1, 2004
C-Class
March 30, 2001
Ten Largest Holdings
Energy Equipment
(% of Total Net Assets)
& Services
Schlumberger Ltd.
10.7%
100%
Halliburton Co.
5.5%
National-Oilwell Varco, Inc.
5.2%
Transocean, Inc.
5.1%
Tenaris SA — SP ADR
5.0%
Baker Hughes, Inc.
4.8%
Weatherford International Ltd.
4.6%
GlobalSantaFe Corp.
3.7%
Energy Services Fund
Diamond Offshore Drilling, Inc.
3.6%
Smith International, Inc.
3.6%
temporary cash investments.
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
51.8%
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
FINANCIAL SERVICES FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the financial services sector.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Thrifts &
Investor Class
April 2, 1998
Mortgage
Advisor Class
April 6, 1998
Finance
Real Estate
6%
A-Class
September 1, 2004
Other
Investment
7%
C-Class
April 19, 2001
Trusts
Ten Largest Holdings
9%
(% of Total Net Assets)
Diversified
Bank of America Corp.
2.6%
Financial
HSBC Holdings PLC — SP ADR
Insurance
2.6%
Services
Citigroup, Inc.
2.5%
12%
24%
Wells Fargo & Co.
2.0%
UBS AG — SP ADR
1.8%
Capital
American International Group, Inc.
1.8%
18%
Commercial
Markets
JPMorgan Chase & Co.
1.7%
Banks
Credit Suisse Group — SP ADR
1.6%
24%
CME Group, Inc.
1.6%
American Express Co.
1.6%
Top Ten Total
19.8%
Financial Services Fund
temporary cash investments.
temporary cash or derivative investments.
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
“Ten Largest Holdings” exclude any
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
11
FUND PROFILES (Unaudited) (continued)
HEALTH CARE FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the health care industry.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
April 17, 1998
12%
6%
Biotechnology
Other
Advisor Class
May 11, 1998
A-Class
September 1, 2004
C-Class
March 30, 2001
Ten Largest Holdings
(% of Total Net Assets)
Health Care
Pfizer, Inc.
3.6%
Equipment &
Johnson & Johnson, Inc.
3.4%
20%
39%
Supplies
Pharmaceuticals
GlaxoSmithKline PLC — SP ADR
3.0%
Novartis AG — SP ADR
2.9%
Health Care
Sanofi-Aventis — SP ADR
2.6%
Providers &
Merck & Co., Inc.
2.6%
23%
Service
AstraZeneca PLC — SP ADR
2.4%
Eli Lilly & Co.
2.3%
Abbott Laboratories
2.3%
Health Care Fund
UnitedHealth Group, Inc.
2.3%
Top Ten Total
27.4%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
“Ten Largest Holdings” exclude any
temporary cash investments.
temporary cash or derivative investments.
INTERNET FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that provide products or services designed for or related to
the Internet.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Media
Investor Class
April 6, 2000
Internet &
Advisor Class
April 6, 2000
Catalog Retail
5%
A-Class
September 1, 2004
11%
C-Class
April 19, 2001
15%
Other
Ten Largest Holdings
(% of Total Net Assets)
Software
Cisco Systems, Inc.
10.2%
Google, Inc. — Class A
12%
Communications
7.8%
Research In Motion Ltd.
Equipment
5.8%
Software &
Internet
29%
Qualcomm, Inc.
5.5%
eBay, Inc.
5.4%
28%
Services
Time Warner, Inc.
5.2%
Amazon.com, Inc.
4.8%
Yahoo!, Inc.
4.0%
Juniper Networks, Inc.
3.5%
Internet Fund
Sun Microsystems, Inc.
3.1%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
55.3%
temporary cash or derivative investments.
temporary cash investments.
“Ten Largest Holdings” exclude any
12
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
LEISURE FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies in the leisure and entertainment businesses.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
Software
Other
April 1, 1998
6%
Advisor Class
June 3, 1998
Leisure Equipment
A-Class
September 1, 2004
1%
8%
& Products
C-Class
May 3, 2001
Ten Largest Holdings
(% of Total Net Assets)
Las Vegas Sands Corp.
5.4%
Media
McDonald’s Corp.
5.0%
21%
Walt Disney Co.
5.0%
Hotels, Restaurants
Time Warner, Inc.
4.7%
& Leisure
News Corp. — Class A
4.2%
64%
Carnival Corp.
3.3%
Wynn Resorts Ltd.
3.2%
MGM Mirage, Inc.
3.1%
Viacom, Inc. — Class B
2.9%
Starbucks Corp.
2.7%
Leisure Fund
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
39.5%
temporary cash investments.
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
PRECIOUS METALS FUND
OBJECTIVE:
To provide capital appreciation by investing in U.S. and foreign companies that are involved in the precious
metals sector, including exploration, mining, production and development, and other precious metals-related services.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
December 1, 1993
Advisor Class
August 1, 2003
A-Class
September 1, 2004
C-Class
April 27, 2001
Ten Largest Holdings
(% of Total Net Assets)
Metals & Mining
Freeport-McMoRan Copper &
100%
Gold, Inc. — Class B
16.1%
Newmont Mining Corp.
9.2%
Barrick Gold Corp.
8.4%
Goldcorp, Inc.
7.7%
Agnico-Eagle Mines Ltd.
4.7%
Yamana Gold, Inc.
4.5%
Gold Fields Ltd. — SP ADR
4.4%
Precious Metals Fund
Kinross Gold Corp.
4.1%
AngloGold Ashanti Ltd. — SP ADR
3.8%
Pan American Silver Corp.
2.8%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
65.7%
temporary cash investments.
“Ten Largest Holdings” exclude any
temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
13
FUND PROFILES (Unaudited) (continued)
RETAILING FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies engaged in merchandising finished goods and services,
consumers.
including department stores, restaurant franchises, mail-order operations and other companies involved in selling products to
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Internet &
Other
Investor Class
April 1, 1998
Catalog Retail
2%
Advisor Class
April 21, 1998
10%
A-Class
September 1, 2004
C-Class
May 9, 2001
Ten Largest Holdings
(% of Total Net Assets)
Multiline
Wal-Mart Stores, Inc.
6.7%
18%
Retail
Specialty Retail
CVS Corp.
4.3%
Target Corp.
3.9%
50%
Home Depot, Inc.
3.8%
Staples
Food &
Amazon.com, Inc.
3.8%
Retailing
Walgreen Co.
3.7%
20%
Lowe’s Cos., Inc.
3.3%
Costco Wholesale Corp.
2.8%
Best Buy Co., Inc.
2.4%
Retailing Fund
Kohl’s Corp.
2.0%
Top Ten Total
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
36.7%
temporary cash investments.
temporary cash or derivative investments.
“Ten Largest Holdings” exclude any
TECHNOLOGY FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that are involved in the technology sector, including
manufacturers, PC hardware and peripherals companies.
computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
April 29, 1998
Internet Software
Investor Class
April 14, 1998
& Services
Semiconductors &
Other
Advisor Class
Electronic Equipment
6%
2%
Semiconductor
A-Class
September 1, 2004
Equipment
C-Class
& Instruments
April 18, 2001
21%
6%
Ten Largest Holdings
Communications
(% of Total Net Assets)
Cisco Systems, Inc.
Equipment
Microsoft Corp.
3.4%
14%
2.6%
Nokia Oyj — SP ADR
2.4%
Software
Computers &
International Business Machines Corp.
2.3%
Peripherals
19%
Intel Corp.
2.1%
15%
Apple, Inc.
2.1%
IT Services
Hewlett-Packard Co.
2.0%
17%
Google, Inc. — Class A
1.8%
Oracle Corp.
1.8%
Dell, Inc.
1.6%
Technology Fund
Top Ten Total
22.1%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
“Ten Largest Holdings” exclude any
temporary cash investments.
temporary cash or derivative investments.
14
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
TELECOMMUNICATIONS FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies engaged in the development, manufacture or sale of
communications services or communications equipment.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
Diversified
April 1, 1998
Telecommunication
Advisor Class
April 1, 1998
Services
A-Class
September 1, 2004
26%
C-Class
April 18, 2001
(% of Total Net Assets)
QTC:
Ten Largest Holdings
Services?
Equipment
Communications
AT&T, Inc.
7.9%
Wireless
46%
Cisco Systems, Inc.
7.4%
Services
Telecommunication
Vodafone Group PLC — SP ADR
7.0%
28%
Nokia Oyj — SP ADR
6.8%
Verizon Communications, Inc.
5.6%
Research In Motion Ltd.
4.2%
America Movil SAB de CV — SP ADR
4.1%
Qualcomm, Inc.
4.0%
Telecommunications Fund
Telefonaktiebolaget LM Ericsson —
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
SP ADR
3.6%
temporary cash investments.
Sprint Nextel Corp.
3.3%
Top Ten Total
53.9%
temporary cash or derivative investments.
“Ten Largest Holdings” exclude any
TRANSPORTATION FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies engaged in providing transportation services or companies
engaged in the design, manufacture, distribution or sale of transportation equipment.
Industry Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
April 2, 1998
3%
Other
Advisor Class
June 9, 1998
A-Class
September 1, 2004
C-Class
May 14, 2001
Ten Largest Holdings
Airlines
(% of Total Net Assets)
22%
United Parcel Service, Inc. — Class B
8.4%
49%
Road & Rail
Canadian National Railway Co.
6.6%
FedEx Corp.
6.5%
Burlington Northern Santa Fe Corp.
Air Freight &
Union Pacific Corp.
6.4%
26%
Logistics
6.1%
Norfolk Southern Corp.
5.2%
CSX Corp.
4.9%
Washington, Inc.
4.0%
Expeditors International
Transportation Fund
Southwest Airlines Co.
3.9%
CH Robinson Worldwide, Inc.
3.6%
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
Top Ten Total
55.6%
temporary cash investments.
temporary cash or derivative investments.
“Ten Largest Holdings” exclude any
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
15
FUND PROFILES (Unaudited) (concluded)
UTILITIES FUND
OBJECTIVE:
Seeks capital appreciation by investing in companies that operate public utilities.
Inception Dates:
Industry Diversification (Market Exposure as % of Net Assets)
Investor Class
April 3, 2000
Advisor Class
Other
April 3, 2000
1%
A-Class
September 1, 2004
C-Class
April 27, 2001
Power Producers &
Independent
Gas
Ten Largest Holdings
Energy Traders
12%
Utilities
(% of Total Net Assets)
13%
Exelon Corp.
4.2%
TXU Corp.
3.4%
40%
Electric Utilities
Southern Co.
3.2%
Dominion Resources, Inc.
3.2%
FPL Group, Inc.
3.1%
Multi-Utilities
Duke Energy Corp.
2.9%
34%
Public Service Enterprise Group, Inc.
2.8%
Entergy Corp.
2.8%
FirstEnergy Corp.
2.6%
Utilities Fund
American Electric Power Co., Inc.
2.6%
Top Ten Total
30.8%
temporary cash investments.
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any
temporary cash or derivative investments.
“Ten Largest Holdings” exclude any
16
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
BANKING FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 100.4%
Webster Financial Corp.
2,459
$
103,573
First Horizon National Corp.†
3,846
102,534
JPMorgan Chase & Co.
17,357
$
795,298
UMB Financial Corp.†
2,260
96,864
HSBC Holdings PLC — SP ADR†
8,460
783,396
PMI Group, Inc.†
2,962
96,857
Bank of America Corp.
15,352
771,745
East-West Bancorp, Inc.
2,675
96,193
Wells Fargo & Co.
20,787
740,433
Trustmark Corp.†
3,190
89,448
ABN AMRO Holding NV —
Investors Bancorp, Inc.*†
6,190
87,650
SP ADR
12,850
674,625
South Financial Group, Inc.
3,845
87,435
UBS AG — SP ADR†
12,596
670,737
NewAlliance Bancshares, Inc.
5,908
86,729
Wachovia Corp.†
12,963
650,094
Chittenden Corp.
2,450
86,142
Credit Suisse Group — SP ADR†
8,761
581,117
First Midwest Bancorp, Inc.†
2,518
86,015
Barclays PLC — SP ADR†
11,413
554,900
UCBH Holdings, Inc.†
4,914
85,897
U.S. Bancorp†
15,421
501,645
First Niagara Financial Group,
Fannie Mae
8,149
495,541
Inc.†
6,027
85,282
Freddie Mac
7,044
415,666
Whitney Holding Corp.
3,216
84,838
Washington Mutual, Inc.†
9,655
340,918
Cathay General Bancorp†
2,615
84,229
SunTrust Banks, Inc.
4,317
326,667
MGIC Investment Corp.
2,604
84,135
PNC Financial Services Group,
FirstMerit Corp.†
4,161
82,221
Inc.†
4,646
316,393
First Community Bancorp†
1,500
82,065
BB&T Corp.
7,754
313,184
Prosperity Bancshares, Inc.
2,466
81,773
National City Corp.†
12,170
305,345
SVB Financial Group*†
1,702
80,607
Regions Financial Corp.†
9,742
287,194
Downey Financial Corp.†
1,388
80,226
Fifth Third Bancorp†
7,896
267,517
IndyMac Bancorp, Inc.†
3,360
79,330
KeyCorp
7,154
231,289
Sterling Savings Bank†
2,839
76,398
M&T Bank Corp.†
2,137
221,073
Umpqua Holding Corp.†
3,459
69,215
Hudson City Bancorp, Inc.
14,247
219,119
Radian Group, Inc.†
2,624
61,087
Marshall & Ilsley Corp.
4,977
217,843
Synovus Financial Corp.
Total Common Stocks
6,921
194,134
(Cost $14,699,206)
16,007,875
UnionBanCal Corp.†
3,237
189,073
Commerce Bancorp, Inc.
4,797
186,028
FACE
Comerica, Inc.†
3,416
175,172
AMOUNT
New York Community Bancorp,
REPURCHASE AGREEMENT 0.0%
Inc.†
9,073
172,841
Repurchase Agreement (Note 5)
Zions Bancorporation
2,511
172,430
Lehman Brothers Holdings, Inc.
Sovereign Bancorp, Inc.
10,101
172,121
issued 09/28/07 at 3.90%
Countrywide Financial Corp.†
8,600
163,486
People’s United Financial, Inc.
due 10/01/07
$
7,651
7,651
8,712
150,543
Total Repurchase Agreement
TFS Financial Corp.*
11,440
148,034
Associated Banc-Corp.
(Cost $7,651)
4,209
7,651
124,713
TCF Financial Corp.†
4,588
120,114
SECURITIES LENDING COLLATERAL 19.6%
City National Corp.†
1,697
117,958
Investment in Securities Lending Short Term
Huntington Bancshares, Inc.†
6,909
117,315
Investment Portfolio Held by
Colonial BancGroup, Inc.†
5,285
114,262
U.S. Bank (Note 8)
3,117,036
3,117,036
Cullen/Frost Bankers, Inc.†
2,247
112,620
Total Securities Lending Collateral
Astoria Financial Corp.†
4,181
110,922
Popular, Inc.†
8,953
109,943
(Cost $3,117,036)
3,117,036
Total Investments 120.0%
Bank of Hawaii Corp.
2,072
109,505
(Cost $17,823,893)
$ 19,132,562
Valley National Bancorp
4,904
108,771
Other Assets – (20.0)%
Wilmington Trust Corp.
2,748
106,897
Liabilities in Excess of
Washington Federal, Inc.†
4,048
106,300
$ (3,192,852)
Fulton Financial Corp.
7,386
106,211
Net Assets – 100.0%
$ 15,939,710
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
17
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
BASIC MATERIALS FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.4%
Martin Marietta Materials, Inc.†
7,935
$
1,059,719
FMC Corp.
20,332
1,057,671
ArcelorMittal†
71,328
$
5,589,262
Temple-Inland, Inc.†
20,073
1,056,442
Rio Tinto PLC — SP ADR†
13,700
4,704,580
Steel Dynamics, Inc.†
22,560
1,053,552
Monsanto Co.†
44,803
3,841,409
Lubrizol Corp.
16,104
1,047,726
Freeport-McMoRan Copper & Gold,
MeadWestvaco Corp.
35,273
1,041,612
Inc. — Class B
32,964
3,457,594
Airgas, Inc.
20,099
1,037,711
Barrick Gold Corp.
83,925
3,380,499
Yamana Gold, Inc.*†
86,600
1,020,148
Southern Copper Corp.†
26,745
3,311,833
Reliance Steel & Aluminum Co.
17,910
1,012,631
Potash Corporation
Harmony Gold Mining Co.
of Saskatchewan†
31,000
3,276,700
Ltd. — SP ADR*
82,500
982,575
E.I. du Pont de Nemours and Co.†
65,897
3,265,855
Meridian Gold, Inc.*
29,600
979,760
Alcan, Inc.
32,496
3,252,200
Florida Rock Industries, Inc.
15,471
966,783
Dow Chemical Co.
71,358
3,072,676
Cleveland-Cliffs, Inc.
10,931
961,600
The Mosaic Co.*†
52,494
2,809,479
Commercial Metals Co.
29,122
921,711
Alcoa, Inc.
71,751
2,806,899
Ashland, Inc.†
15,301
921,273
Praxair, Inc.
32,664
2,735,937
Cytec Industries, Inc.
13,313
910,476
Goldcorp, Inc.†
83,108
2,539,780
Sealed Air Corp.†
35,477
906,792
Air Products & Chemicals, Inc.
25,596
2,502,265
Crown Holdings, Inc.*
39,616
901,660
Newmont Mining Corp.
51,233
2,291,652
Carpenter Technology Corp.
6,865
892,519
Cemex SA de CV — SP ADR*†
71,574
2,141,494
Packaging Corporation of America
30,691
892,187
Nucor Corp.
35,193
2,092,928
Pactiv Corp.*
31,126
892,071
AngloGold Ashanti Ltd. — SP ADR
41,800
1,960,002
Terra Industries, Inc.*†
28,400
887,784
Weyerhaeuser Co.†
25,590
1,850,157
RPM International, Inc.†
35,154
841,938
International Paper Co.†
51,560
1,849,457
Scotts Miracle-Gro Co. — Class A†
19,220
821,655
Lyondell Chemical Co.
39,555
1,833,374
AptarGroup, Inc.†
21,380
809,661
Gold Fields Ltd. — SP ADR
100,680
1,821,301
Domtar Corp.*
98,200
805,240
Ecolab, Inc.†
37,670
1,778,024
Bemis Co.
27,419
798,167
Rohm & Haas Co.†
31,097
1,731,170
Valspar Corp.
29,270
796,437
PPG Industries, Inc.
22,790
1,721,785
Hercules, Inc.†
37,507
788,397
United States Steel Corp.
16,051
1,700,443
Smurfit-Stone Container Corp.*
66,767
779,839
Allegheny Technologies, Inc.
15,187
1,669,811
Silver Standard Resources, Inc.*†
20,912
779,808
Kinross Gold Corp.*†
108,124
1,619,698
Pan American Silver Corp.*
26,400
762,960
Agrium, Inc.
27,143
1,476,036
Sonoco Products Co.
23,703
715,357
Agnico-Eagle Mines Ltd.†
28,746
1,431,551
Worthington Industries, Inc.†
30,196
711,418
Owens-Illinois, Inc.*
32,325
1,339,871
W.R. Grace & Co.*†
26,450
710,447
Sigma-Aldrich Corp.
27,337
1,332,405
Texas Industries, Inc.†
8,990
705,715
Vulcan Materials Co.†
14,276
1,272,705
Century Aluminum Co.*†
13,000
684,450
Celanese Corp.
30,924
1,205,418
H.B. Fuller Co.†
22,296
661,745
Huntsman Corp.
44,427
1,176,871
RTI International Metals, Inc.*
8,286
656,748
AK Steel Holding Corp.*
26,600
1,169,070
Cabot Corp.
18,083
642,489
Titanium Metals Corp.*†
34,814
1,168,358
Chemtura Corp.
71,783
638,151
Eastman Chemical Co.†
17,382
1,159,901
Quanex Corp.†
13,364
627,841
Ball Corp.†
21,480
1,154,550
Louisiana-Pacific Corp.
36,605
621,187
CF Industries Holdings, Inc.
14,700
1,115,877
Westlake Chemical Corp.
23,692
600,118
International Flavors & Fragrances,
Eagle Materials, Inc.†
15,230
544,320
Inc.†
20,425
1,079,666
Nalco Holding Co.
Total Common Stocks
35,915
1,064,880
(Cost $100,785,416)
Albemarle Corp.
24,088
1,064,690
132,728,604
18
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
BASIC MATERIALS FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
REPURCHASE AGREEMENT 0.1%
Repurchase Agreement (Note 5)
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
$
179,656
$
179,656
Total Repurchase Agreement
(Cost $179,656)
179,656
SECURITIES LENDING COLLATERAL 22.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
29,291,969
29,291,969
Total Securities Lending Collateral
(Cost $29,291,969)
29,291,969
Total Investments 121.5%
(Cost $130,257,041)
$ 162,200,229
Liabilities in Excess of
Other Assets – (21.5)%
$ (28,695,538)
Net Assets – 100.0%
$ 133,504,691
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
19
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
BIOTECHNOLOGY FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
COMMON STOCKS 99.5%
Ligand Pharmaceuticals,
Inc. — Class B†
130,965
$
699,353
Genentech, Inc.*
129,164
$
10,077,375
CV Therapeutics, Inc.*†
74,543
669,396
Amgen, Inc.*†
160,253
9,065,512
QLT, Inc.*†
110,989
631,527
Gilead Sciences, Inc.*
170,620
6,973,239
Neurocrine Biosciences, Inc.*†
63,000
630,000
Celgene Corp.*†
89,411
6,375,898
Vanda Pharmaceuticals, Inc.*†
40,300
560,573
Biogen Idec, Inc.*
80,039
5,308,987
Total Common Stocks
Genzyme Corp.*
70,356
4,359,258
Amylin Pharmaceuticals, Inc.*†
61,364
3,068,200
(Cost $66,025,229)
102,738,099
Vertex Pharmaceuticals, Inc.*
74,483
2,860,892
FACE
Cephalon, Inc.*†
31,639
2,311,545
AMOUNT
ImClone Systems, Inc.*
53,119
2,195,940
Onyx Pharmaceuticals, Inc.*†
49,100
2,136,832
SECURITIES LENDING COLLATERAL 27.4%
Investment in Securities Lending Short Term
Alexion Pharmaceuticals, Inc.*
31,016
2,020,692
Investment Portfolio Held by
BioMarin Pharmaceuticals, Inc.*†
79,850
1,988,265
U.S. Bank (Note 8)
$28,301,133
28,301,133
Millennium Pharmaceuticals, Inc.*†
190,768
1,936,295
Myriad Genetics, Inc.*†
Total Securities Lending Collateral
36,730
1,915,470
Alnylam Pharmaceuticals, Inc.*†
54,601
1,789,275
(Cost $28,301,133)
28,301,133
Alkermes, Inc.*†
91,272
1,679,405
Total Investments 126.9%
Pharmion Corp.*†
36,362
1,677,743
(Cost $94,326,362)
$131,039,232
PDL BioPharma, Inc.*
77,335
1,671,209
Liabilities in Excess of
Cepheid, Inc.*
66,900
1,525,320
Other Assets – (26.9)%
$ (27,767,851)
OSI Pharmaceuticals, Inc.*†
44,154
1,500,794
Net Assets – 100.0%
$103,271,381
Isis Pharmaceuticals, Inc.*†
99,957
1,496,356
Medarex, Inc.*
103,344
1,463,351
Human Genome Sciences, Inc.*†
133,935
1,378,191
LifeCell Corp.*†
36,100
1,356,277
United Therapeutics Corp.*†
19,735
1,313,167
Applera Corp. - Celera Group*†
88,544
1,244,929
Cubist Pharmaceuticals, Inc.*†
58,020
1,225,963
Regeneron Pharmaceuticals, Inc.*†
65,360
1,163,408
Martek Biosciences Corp.*†
38,400
1,114,752
Savient Pharmaceuticals, Inc.*
72,523
1,055,210
Zymogenetics, Inc.*†
75,863
990,012
Incyte Corp.*†
130,187
930,837
Seattle Genetics, Inc.*†
82,620
928,649
Arena Pharmaceuticals, Inc.*†
82,749
906,102
Dendreon Corp.*†
113,100
869,739
Omrix Biopharmaceuticals, Inc.*†
24,440
862,976
Acadia Pharmaceuticals, Inc.*†
57,300
862,365
Progenics Pharmaceuticals, Inc.*†
38,676
855,126
Geron Corp.*†
111,000
812,520
MannKind Corp.*†
83,387
807,186
Indevus Pharmaceuticals, Inc.*
116,600
805,706
Genomic Health, Inc.*†
41,900
804,061
Metabolix, Inc.*
32,400
786,024
Array Biopharma, Inc.*†
69,759
783,394
Acorda Therapeutics, Inc.*†
41,800
767,030
Angiotech Pharmaceuticals, Inc.*†
122,054
765,279
InterMune, Inc.*†
39,754
760,494
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
20
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
CONSUMER PRODUCTS FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.7%
Dean Foods Co.
7,965
$
203,745
J.M. Smucker Co.
3,718
198,616
Procter & Gamble Co.
28,035
$
1,971,982
Bare Escentuals, Inc.*†
6,316
157,079
Coca-Cola Co.
25,975
1,492,783
Total Common Stocks
Altria Group, Inc.
21,329
1,483,005
(Cost $19,568,938)
25,647,530
PepsiCo, Inc.
19,502
1,428,717
Diageo PLC — SP ADR
11,050
AMOUNT
969,416
FACE
Kraft Foods, Inc. — Class A
27,067
934,082
Unilever NV — SP ADR
29,150
899,277
Colgate-Palmolive Co.
10,912
778,244
REPURCHASE AGREEMENT 0.1%
Anheuser-Busch Cos., Inc.
14,980
748,850
Repurchase Agreement (Note 5)
Lehman Brothers Holdings, Inc.
Kimberly-Clark Corp.
10,170
714,544
issued 09/28/07 at 3.90%
Kellogg Co.
10,849
607,544
due 10/01/07
$
27,436
Sysco Corp.
27,436
16,953
603,357
Cadbury Schweppes PLC —
Total Repurchase Agreement
SP ADR
(Cost $27,436)
27,436
12,270
570,800
Archer-Daniels-Midland Co.
17,135
566,826
SECURITIES LENDING COLLATERAL 6.2%
Kroger Co.
19,717
562,329
General Mills, Inc.
9,530
552,835
Investment in Securities Lending Short Term
Investment Portfolio Held by
Reynolds American, Inc.†
8,258
525,126
U.S. Bank (Note 8)
1,581,837
1,581,837
Bunge, Ltd.
4,680
502,866
Total Securities Lending Collateral
Avon Products, Inc.
13,351
501,063
(Cost $1,581,837)
1,581,837
WM Wrigley Jr Co.
7,745
497,461
Total Investments 106.0%
H.J. Heinz Co.
10,245
473,319
(Cost $21,178,211)
$ 27,256,803
Safeway, Inc.
14,097
466,752
Campbell Soup Co.
12,540
463,980
Liabilities in Excess of
ConAgra Foods, Inc.
16,753
437,756
Other Assets – (6.0)%
$ (1,534,501)
Sara Lee Corp.
25,489
425,411
Net Assets – 100.0%
$ 25,722,302
Coca-Cola Enterprises, Inc.†
17,538
424,770
Pepsi Bottling Group, Inc.†
10,098
375,343
Loews Corp. - Carolina Group
4,552
374,311
Clorox Co.
6,116
373,015
Whole Foods Market, Inc.†
7,559
370,089
Molson Coors Brewing Co. —
Class B
3,442
343,064
UST, Inc.†
6,806
337,578
Hershey Co.†
7,156
332,110
Energizer Holdings, Inc.*
2,975
329,779
SUPERVALU, Inc.
8,356
325,968
Hansen Natural Corp.*
5,629
319,052
Brown-Forman Corp. — Class B
3,763
281,886
Constellation Brands, Inc. —
Class A*†
11,007
266,479
Estee Lauder Cos., Inc. —
Class A†
6,122
259,940
Smithfield Foods, Inc.*
8,163
257,135
McCormick & Co., Inc.
6,961
250,387
Tyson Foods, Inc. — Class A
13,639
243,456
Corn Products International, Inc.
5,042
231,277
Church & Dwight Co., Inc.†
4,552
214,126
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
21
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
ELECTRONICS FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.5%
Semtech Corp.*
18,059
$
369,848
Diodes, Inc.*
11,390
365,619
Intel Corp.
147,577
$
3,816,341
RF Micro Devices, Inc.*†
53,927
362,929
Texas Instruments, Inc.
58,889
2,154,748
Hittite Microwave Corp.*
8,030
354,524
Taiwan Semiconductor Manufacturing
Cymer, Inc.*†
9,122
350,194
Co. Ltd. — SP ADR
204,532
2,069,864
SiRF Technology Holdings, Inc.*†
15,140
323,239
Applied Materials, Inc.
79,726
1,650,328
FEI Co.*†
9,874
310,340
Nvidia Corp.*
41,574
1,506,642
Entegris, Inc.*
32,570
282,708
Broadcom Corp. — Class A*†
37,876
1,380,201
Brooks Automation, Inc.*
19,622
279,417
ASML Holding NV — SP ADR
39,900
1,311,114
Spansion, Inc.*
32,836
277,464
STMicroelectronics NV — SP ADR
65,481
1,096,807
MKS Instruments, Inc.*†
13,832
263,085
Infineon Technologies AG —
SP ADR*†
63,171
1,085,278
Total Common Stocks
MEMC Electronic Materials, Inc.*
18,344
1,079,728
(Cost $32,720,058)
41,806,109
AMOUNT
Analog Devices, Inc.†
27,952
1,010,744
FACE
KLA-Tencor Corp.†
17,734
989,203
Altera Corp.†
37,563
904,517
REPURCHASE AGREEMENT 0.5%
Marvell Technology Group Ltd.*
54,540
892,820
Repurchase Agreement (Note 5)
Linear Technology Corp.†
25,102
878,319
Maxim Integrated Products, Inc.
Lehman Brothers Holdings, Inc.
29,555
867,439
National Semiconductor Corp.†
31,783
861,955
issued 09/28/07 at 3.90%
Microchip Technology, Inc.
23,131
840,118
due 10/01/07
$
211,766
211,766
Total Repurchase Agreement
Xilinx, Inc.
31,769
830,442
(Cost $211,766)
211,766
Lam Research Corp.*†
15,513
826,222
Micron Technology, Inc.*†
73,819
819,391
SECURITIES LENDING COLLATERAL 12.4%
Advanced Micro Devices, Inc.*†
59,930
791,076
Varian Semiconductor Equipment
Investment in Securities Lending Short Term
Investment Portfolio Held by
Associates, Inc.*
13,533
724,286
U.S. Bank (Note 8)
LSI Logic Corp.*
94,979
5,200,500
5,200,500
704,744
Total Securities Lending Collateral
Cypress Semiconductor Corp.*†
24,016
701,507
(Cost $5,200,500)
5,200,500
Intersil Corp. — Class A
19,578
654,493
Total Investments 112.4%
ON Semiconductor Corp.*†
48,830
613,305
Novellus Systems, Inc.*
(Cost $38,132,324)
$ 47,218,375
20,123
548,553
Integrated Device Technology,
Liabilities in Excess of
Inc.*
34,238
530,004
Other Assets – (12.4)%
$ (5,207,666)
Cree, Inc.*†
16,418
510,600
Net Assets – 100.0%
$ 42,010,709
Silicon Laboratories, Inc.*
12,157
507,676
Formfactor, Inc.*†
10,670
473,428
Microsemi Corp.*†
16,589
462,501
Atmel Corp.*
88,935
458,905
Fairchild Semiconductor
International, Inc.*
24,182
451,720
International Rectifier Corp.*†
13,372
441,142
Rambus, Inc.*†
22,910
437,810
Teradyne, Inc.*
31,462
434,176
PMC - Sierra, Inc.*†
49,693
416,924
Skyworks Solutions, Inc.*†
43,870
396,585
Tessera Technologies, Inc.*†
10,290
385,875
Atheros Communications, Inc.*
12,590
377,322
Amkor Technology, Inc.*†
32,282
371,889
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007-—See Note 8.
ADR—American Depository Receipt.
22
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
ENERGY FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.6%
Nabors Industries Ltd.*†
33,638
$
1,035,041
Sunoco, Inc.†
14,016
992,052
Exxon Mobil Corp.
93,241
$
8,630,387
ENSCO International, Inc.†
17,518
982,760
Chevron Corp.
57,182
5,351,092
BJ Services Co.
36,929
980,465
BP PLC — SP ADR
75,881
5,262,347
Grant Prideco, Inc.*†
17,455
951,647
ConocoPhillips
51,653
4,533,584
Southwestern Energy Co.*
22,192
928,735
Royal Dutch Shell PLC — SP ADR†
53,820
4,422,928
Newfield Exploration Co.*
19,096
919,663
Schlumberger Ltd.†
42,025
4,412,625
Range Resources Corp.
22,369
909,523
Occidental Petroleum Corp.
42,970
2,753,518
Denbury Resources, Inc.*
20,284
906,492
Canadian Natural Resources Ltd.†
32,500
2,461,875
Oceaneering International, Inc.*
11,662
883,980
Halliburton Co.†
59,000
2,265,600
Pride International, Inc.*
23,872
872,522
Devon Energy Corp.
27,097
2,254,470
Pioneer Natural Resources Co.†
18,221
819,581
Marathon Oil Corp.
37,936
2,163,111
Tesoro Corp.
17,576
808,847
National-Oilwell Varco, Inc.*
14,684
2,121,838
Arch Coal, Inc.†
23,160
781,418
Transocean, Inc.*†
18,688
2,112,678
Teekay Shipping Corp.†
12,700
746,887
Valero Energy Corp.
31,062
2,086,745
Frontier Oil Corp.†
17,836
742,691
Tenaris SA — SP ADR
39,400
2,073,228
Helix Energy Solutions Group,
Apache Corp.
22,825
2,055,619
Inc.*†
17,457
741,224
Baker Hughes, Inc.†
21,957
1,984,254
Dresser-Rand Group, Inc.*
16,832
718,895
Weatherford International Ltd.*
28,065
1,885,407
Quicksilver Resources, Inc.*†
15,040
707,632
Anadarko Petroleum Corp.
34,091
1,832,391
Frontline, Ltd.†
14,200
685,576
XTO Energy, Inc.
28,815
1,781,920
Rowan Cos., Inc.†
18,654
682,363
Hess Corp.
26,262
1,747,211
Pogo Producing Co.
12,204
648,154
Williams Cos., Inc.
49,059
1,670,949
Cabot Oil & Gas Corp.
18,380
646,241
Talisman Energy, Inc.
83,800
1,650,860
Patterson-UTI Energy, Inc.†
28,610
645,728
GlobalSantaFe Corp.
20,100
1,528,002
Tidewater, Inc.†
10,196
640,717
EOG Resources, Inc.†
20,765
1,501,932
Helmerich & Payne, Inc.
19,504
640,316
Diamond Offshore Drilling, Inc.†
13,241
1,500,073
Plains Exploration & Production
Smith International, Inc.
20,864
1,489,690
Co.*†
13,944
616,604
Chesapeake Energy Corp.†
41,423
1,460,575
Cimarex Energy Co.
16,442
612,464
Nexen, Inc.
47,050
1,436,907
Global Industries Ltd.*†
23,731
611,311
Cameco Corp.
30,600
1,414,944
PetroHawk Energy Corp.*
37,200
610,824
Murphy Oil Corp.
20,189
1,411,009
Exterran Holdings, Inc.*
7,505
602,952
Spectra Energy Corp.†
56,060
1,372,349
Forest Oil Corp.*†
14,000
602,560
Noble Energy, Inc.
18,816
1,317,873
Holly Corp.
9,800
586,334
Noble Corp.
26,564
1,302,964
Superior Energy Services*
16,253
576,006
Cameron International Corp.*†
14,095
1,300,828
Overseas Shipholding Group, Inc.†
7,085
544,341
Peabody Energy Corp.†
26,820
1,283,873
Western Refining, Inc.†
12,100
491,018
El Paso Corp.†
72,676
1,233,312
Unit Corp.*
10,040
485,936
FMC Technologies, Inc.*
20,404
1,176,495
Total Common Stocks
Ultra Petroleum Corp.*
18,800
1,166,352
Consol Energy, Inc.
22,552
1,050,923
(Cost $63,435,009)
117,822,238
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
23
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
ENERGY FUND
MARKET
AMOUNT
(NOTE 1)
FACE
VALUE
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
$
820,548
$
820,548
Total Repurchase Agreement
(Cost $820,548)
820,548
SECURITIES LENDING COLLATERAL 15.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
18,206,065
18,206,065
Total Securities Lending Collateral
(Cost $18,206,065)
18,206,065
Total Investments 115.7%
(Cost $82,461,622)
$ 136,848,851
Liabilities in Excess of
Other Assets – (15.7)%
$ (18,522,498)
Net Assets – 100.0%
$ 118,326,353
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
24
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
ENERGY SERVICES FUND
VALUE
FACE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
VALUE
COMMON STOCKS 99.9%
REPURCHASE AGREEMENT 1.0%
Repurchase Agreement (Note 5)
Schlumberger Ltd.†
239,569
$
25,154,745
Lehman Brothers Holdings, Inc.
Halliburton Co.†
336,880
12,936,192
issued 09/28/07 at 3.90%
National-Oilwell Varco, Inc.*
83,814
12,111,123
due 10/01/07
$
2,372,942
$
2,372,942
Transocean, Inc.*†
106,619
12,053,278
Tenaris SA — SP ADR
224,600
11,818,452
Total Repurchase Agreement
(Cost $2,372,942)
Baker Hughes, Inc.†
125,379
11,330,500
2,372,942
Weatherford International Ltd.*
159,897
10,741,880
SECURITIES LENDING COLLATERAL 27.5%
GlobalSantaFe Corp.
114,585
8,710,752
Investment in Securities Lending Short Term
Diamond Offshore Drilling, Inc.†
75,261
8,526,319
Investment Portfolio Held by
Smith International, Inc.†
119,266
8,515,592
U.S. Bank (Note 8)
64,265,799
64,265,799
Noble Corp.
151,404
7,426,366
Total Securities Lending Collateral
Cameron International Corp.*
80,379
7,418,178
(Cost $64,265,799)
64,265,799
FMC Technologies, Inc.*
116,362
6,709,433
Total Investments 128.4%
Exterran Holdings, Inc.*†
82,364
6,617,124
Nabors Industries Ltd.*†
192,066
5,909,871
(Cost $202,682,689)
$300,564,502
ENSCO International, Inc.†
99,714
5,593,955
Liabilities in Excess of
Other Assets – (28.4)%
BJ Services Co.
210,437
5,587,102
$ (66,509,248)
Grant Prideco, Inc.*†
99,791
5,440,605
Net Assets – 100.0%
$234,055,254
Oceaneering International, Inc.*
66,497
5,040,473
Pride International, Inc.*†
136,110
4,974,820
Dresser-Rand Group, Inc.*
95,910
4,096,316
Rowan Cos., Inc.†
106,332
3,889,625
Patterson-UTI Energy, Inc.†
163,301
3,685,704
Helmerich & Payne, Inc.
111,520
3,661,202
Tidewater, Inc.†
57,978
3,643,337
Global Industries Ltd.*†
135,692
3,495,426
W-H Energy Services, Inc.*
45,657
3,367,204
Atwood Oceanics, Inc.*†
43,847
3,356,926
Oil States International, Inc.*†
69,448
3,354,338
Superior Energy Services*
92,851
3,290,639
SEACOR Holdings, Inc.*†
33,427
3,178,908
Dril-Quip, Inc.*
61,111
3,015,828
Unit Corp.*
56,779
2,748,104
Complete Production Services,
Inc.*
111,492
2,283,356
Tetra Technologies, Inc.*†
103,191
2,181,458
Grey Wolf, Inc.*
314,600
2,060,630
Total Common Stocks
(Cost $136,043,948)
233,925,761
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
25
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
FINANCIAL SERVICES FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.5%
UnumProvident Corp.
7,068
$
172,954
Commerce Bancorp, Inc.
4,450
172,571
Bank of America Corp.
12,987
$
652,856
UnionBanCal Corp.†
2,937
171,550
HSBC Holdings PLC — SP ADR†
6,940
642,644
Discover Financial Services*
8,140
169,312
Citigroup, Inc.
13,484
629,298
Marshall & Ilsley Corp.
3,739
163,656
Wells Fargo & Co.
13,781
490,879
SAFECO Corp.†
2,667
163,274
UBS AG — SP ADR
8,480
451,560
Comerica, Inc.
3,169
162,506
American International Group, Inc.
6,667
451,023
Zions Bancorporation
2,355
161,718
JPMorgan Chase & Co.
9,121
417,924
Sovereign Bancorp, Inc.
9,430
160,687
Credit Suisse Group — SP ADR
6,034
400,235
Countrywide Financial Corp.†
8,387
159,437
CME Group, Inc.
666
391,175
AFLAC, Inc.
2,724
155,377
American Express Co.†
6,556
389,230
Torchmark Corp.
2,490
155,177
Barclays PLC — SP ADR†
7,919
385,022
W.R. Berkley Corp.
5,196
153,957
Morgan Stanley†
5,743
361,809
SEI Investments Co.
5,634
153,696
ABN AMRO Holding NV —
Cincinnati Financial Corp.
3,503
151,715
SP ADR
6,757
354,742
Janus Capital Group, Inc.†
5,360
151,581
Fannie Mae
5,768
350,752
Loews Corp.
3,119
150,804
Merrill Lynch & Co., Inc.
4,857
346,207
Markel Corp.*
310
150,040
Wachovia Corp.†
6,352
318,553
Nuveen Investments, Inc. —
Freddie Mac
5,156
304,256
Class A
2,419
149,833
Goldman Sachs Group, Inc.†
1,393
301,919
NYSE Euronext†
1,849
146,385
Allstate Corp.
5,029
287,609
Lehman Brothers Holdings, Inc.†
2,320
143,214
Travelers Cos, Inc.
5,611
282,458
Forest City Enterprises, Inc. —
Franklin Resources, Inc.†
2,168
276,420
Class A
2,540
140,106
Hartford Financial Services Group,
Brown & Brown, Inc.
5,302
139,443
Inc.†
2,901
268,488
Charles Schwab Corp.
6,404
138,326
Washington Mutual, Inc.†
7,378
260,517
E*Trade Financial Corp.*†
10,345
135,106
SunTrust Banks, Inc.
3,329
251,905
Reinsurance Group of America,
Capital One Financial Corp.
3,779
251,039
Inc.
2,380
134,922
PNC Financial Services Group,
Jones Lang LaSalle, Inc.
1,306
134,205
Inc.†
3,598
245,024
Genworth Financial, Inc. — Class A
4,331
133,092
U.S. Bancorp†
7,146
232,459
TCF Financial Corp.
5,050
132,209
MetLife, Inc.†
3,332
232,340
City National Corp.†
1,870
129,984
SLM Corp.
4,626
229,773
Eaton Vance Corp.
3,251
129,910
Regions Financial Corp.†
7,757
228,676
Simon Property Group, Inc.
1,297
129,700
Fifth Third Bancorp†
6,397
216,730
American Financial Group, Inc.
4,543
129,566
Bank of New York Mellon Corp.
4,874
215,138
iStar Financial, Inc.
3,790
128,822
Aon Corp.†
4,710
211,055
Fidelity National Financial, Inc. —
Prudential Financial, Inc.
2,154
210,187
Class A†
7,362
128,688
Archstone-Smith Trust
3,457
207,904
Cullen/Frost Bankers, Inc.†
2,560
128,307
Bear Stearns Cos., Inc.†
1,685
206,935
Protective Life Corp.
3,010
127,744
Nymex Holdings, Inc.†
1,555
202,430
Huntington Bancshares, Inc.†
7,490
127,180
Marsh & McLennan Cos., Inc.
7,757
197,803
HCC Insurance Holdings, Inc.†
4,438
127,104
Progressive Corp.†
10,116
196,352
First American Corp.†
3,421
125,277
KeyCorp
6,061
195,952
Nationwide Financial Services, Inc.
2,300
123,786
Moody’s Corp.†
3,861
194,594
State Street Corp.
1,813
123,574
National City Corp.†
7,605
190,809
Odyssey Re Holdings Corp.
3,320
123,205
BB&T Corp.
4,718
190,560
Popular, Inc.†
10,009
122,911
M&T Bank Corp.
1,833
189,624
Brookfield Asset Management,
Vornado Realty Trust
1,719
187,973
Inc. — Class A
3,145
121,082
Host Hotels & Resorts, Inc.
8,295
186,140
Chubb Corp.†
2,211
118,598
Legg Mason, Inc.
2,191
184,679
First Horizon National Corp.†
4,441
118,397
CNA Financial Corp.
4,550
178,906
Blackrock, Inc.
675
117,052
Synovus Financial Corp.
6,265
175,733
ACE Ltd.
1,904
115,325
26
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
FINANCIAL SERVICES FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
The St. Joe Co.†
3,385
$
113,770
CIT Group, Inc.
714
$
28,703
Ambac Financial Group, Inc.†
1,780
111,980
Nasdaq Stock Market, Inc.*†
683
25,735
ProLogis†
1,681
111,534
RenaissanceRe Holdings Ltd.
370
24,202
AmeriCredit Corp.*†
6,080
106,886
TFS Financial Corp.*
1,810
23,421
Camden Property Trust
1,633
104,920
Annaly Mortgage Management,
Duke Realty Corp.
3,084
104,270
Inc.
1,460
23,258
People’s United Financial, Inc.
5,928
102,436
Raymond James Financial, Inc.†
670
22,010
IntercontinentalExchange, Inc.*
670
101,773
Allied Capital Corp.†
714
20,984
Principal Financial Group, Inc.
1,594
100,565
PartnerRe Ltd.
250
19,748
Lincoln National Corp.
1,470
96,976
First Marblehead Corp.†
400
15,172
T. Rowe Price Group, Inc.†
1,714
95,453
Federated Investors, Inc. —
A.G. Edwards, Inc.
1,090
91,287
Class B†
380
15,086
Northern Trust Corp.
1,342
88,934
Hospitality Properties Trust†
360
14,634
Assurant, Inc.
1,660
88,810
Health Care REIT, Inc.†
320
14,157
Leucadia National Corp.
1,796
86,603
Weingarten Realty Investors
320
13,267
Ameriprise Financial, Inc.†
1,370
86,461
Allied World Assurance Holdings
UDR, Inc.†
3,518
85,558
Ltd.
250
12,978
Public Storage, Inc.
1,051
82,661
Liberty Property Trust
322
12,948
KIMCO Realty Corp.
1,827
82,599
Essex Property Trust, Inc.
110
12,933
General Growth Properties, Inc.
1,488
79,787
Rayonier, Inc.†
268
12,875
XL Capital Ltd.
1,006
79,675
Affiliated Managers Group, Inc.*†
100
12,751
Boston Properties, Inc.
746
77,509
Jefferies Group, Inc.†
455
12,663
Equity Residential
1,688
71,504
CapitalSource, Inc.
618
12,508
Hudson City Bancorp, Inc.
4,225
64,981
Associated Banc-Corp.
422
12,504
Brookfield Properties Corp.
2,435
60,632
Colonial BancGroup, Inc.†
575
12,432
TD Ameritrade Holding Corp.*
3,327
60,618
Total Common Stocks
AvalonBay Communities, Inc.
502
59,266
(Cost $22,754,722)
24,911,656
Plum Creek Timber Co., Inc. (REIT)
1,124
50,310
CB Richard Ellis Group, Inc. —
FACE
Class A*
1,778
49,500
AMOUNT
Arch Capital Group Ltd.*
660
49,111
REPURCHASE AGREEMENT 0.1%
MBIA, Inc.†
789
48,168
HCP, Inc.
Repurchase Agreement (Note 5)
1,393
46,206
Lehman Brothers Holdings, Inc.
Developers Diversified Realty
issued 09/28/07 at 3.90%
Corp.
801
44,752
SL Green Realty Corp.†
due 10/01/07
$
12,688
12,688
373
43,555
Everest Re Group Ltd.
Total Repurchase Agreement
395
43,545
(Cost $12,688)
12,688
New York Community Bancorp,
Inc.†
2,184
41,605
SECURITIES LENDING COLLATERAL 14.0%
Apartment Investment &
Investment in Securities Lending Short Term
Management Co. — Class A†
911
41,113
Thornburg Mortgage, Inc.†
3,063
39,360
Investment Portfolio Held by
Macerich Co.
436
38,185
U.S. Bank (Note 8)
3,517,538
3,517,538
AMB Property Corp.†
635
37,979
Total Securities Lending Collateral
Ventas, Inc.†
(Cost $3,517,538)
3,517,538
890
36,846
Total Investments 113.6%
Old Republic International Corp.
1,965
36,824
American Capital Strategies, Ltd.
839
35,850
(Cost $26,284,948)
$ 28,441,882
Axis Capital Holdings Ltd.
850
$ (3,395,450)
33,074
Liabilities in Excess of
Willis Group Holdings Ltd.
800
32,752
Other Assets – (13.6)%
Federal Realty Investment Trust
354
31,364
Net Assets – 100.0%
$ 25,046,432
Regency Centers Corp.
388
29,779
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
REIT — Real Estate Investment Trust.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
27
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
HEALTH CARE FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.7%
IMS Health, Inc.
14,781
$
452,890
Boston Scientific Corp.*
32,121
448,088
Pfizer, Inc.
74,718
$
1,825,361
Zimmer Holdings, Inc.*
5,501
445,526
Johnson & Johnson, Inc.
26,767
1,758,592
Patterson Cos., Inc.*
11,476
443,088
GlaxoSmithKline PLC — SP ADR
28,820
1,533,224
Varian Medical Systems, Inc.*†
10,546
441,772
Novartis AG — SP ADR
27,320
1,501,507
Cerner Corp.*†
7,175
429,137
Sanofi-Aventis — SP ADR
31,010
1,315,444
Beckman Coulter, Inc.†
5,814
428,841
Merck & Co., Inc.
25,337
1,309,670
Manor Care, Inc.
6,545
421,498
AstraZeneca PLC — SP ADR
24,850
1,244,239
Kinetic Concepts, Inc.*†
7,180
404,090
Eli Lilly & Co.
21,109
1,201,735
CIGNA Corp.
7,435
396,211
Abbott Laboratories
22,204
1,190,578
PerkinElmer, Inc.
13,370
390,538
UnitedHealth Group, Inc.
23,944
1,159,608
Omnicare, Inc.
11,776
390,139
Genentech, Inc.*
13,986
1,091,188
Pharmaceutical Product
Bristol-Myers Squibb Co.
37,586
1,083,229
Development, Inc.†
10,908
386,580
Wyeth
23,346
1,040,064
Endo Pharmaceuticals Holdings,
WellPoint, Inc.*
13,138
1,036,851
Inc.*
12,400
384,524
Medtronic, Inc.†
17,323
977,190
ResMed, Inc.*†
8,720
373,826
Amgen, Inc.*†
17,093
966,951
Watson Pharmaceuticals, Inc.*
11,523
373,345
Stryker Corp.†
12,595
866,032
Millennium Pharmaceuticals, Inc.*†
35,700
362,355
Schering-Plough Corp.†
25,400
803,402
Bausch & Lomb, Inc.
5,640
360,960
Alcon, Inc. — SP ADR†
5,340
768,533
Shire PLC — SP ADR†
4,860
359,543
Cardinal Health, Inc.
11,931
746,045
Intuitive Surgical, Inc.*†
1,550
356,500
Gilead Sciences, Inc.*
17,410
711,547
Hillenbrand Industries, Inc.
6,388
351,468
Teva Pharmaceutical Industries
Lincare Holdings, Inc.*
9,580
351,107
Ltd. — SP ADR†
15,710
698,624
Humana, Inc.*
4,977
347,793
McKesson Corp.
11,677
686,491
Community Health Systems, Inc.*†
10,436
328,108
Baxter International, Inc.
11,891
669,225
Sepracor, Inc.*†
11,387
313,143
Express Scripts, Inc.*
11,988
669,170
King Pharmaceuticals, Inc.*†
25,530
299,212
St. Jude Medical, Inc.*
14,928
657,877
Coventry Health Care, Inc.*
4,711
293,071
Genzyme Corp.*
10,610
657,396
C.R. Bard, Inc.†
3,135
276,476
Celgene Corp.*†
9,026
643,644
Elan Corp. PLC — SP ADR*
13,120
276,045
Aetna, Inc.
11,053
599,846
Applera Corp. - Applied
Medco Health Solutions, Inc.*
6,544
591,512
Biosystems Group
6,682
231,464
Quest Diagnostics, Inc.†
10,081
582,379
Waters Corp.*
3,440
230,205
Thermo Fisher Scientific, Inc.*
9,665
557,864
DaVita, Inc.*
3,612
228,206
Forest Laboratories, Inc.*
14,642
546,000
DENTSPLY International, Inc.
5,212
217,028
Laboratory Corporation
Hospira, Inc.*
5,169
214,255
of America Holdings*†
6,786
530,869
Cytyc Corp.*
3,880
184,882
Dade Behring Holdings, Inc.
6,950
530,632
Covance, Inc.*†
2,290
178,391
Biogen Idec, Inc.*
7,821
518,767
WellCare Health Plans, Inc.*
1,590
167,634
AmerisourceBergen Corp.
11,174
506,517
Cephalon, Inc.*†
2,026
148,020
Amylin Pharmaceuticals, Inc.*†
10,006
500,300
Invitrogen Corp.*
1,770
144,662
Allergan, Inc.
7,730
498,353
Millipore Corp.*†
1,825
138,335
Becton, Dickinson & Co.†
6,010
493,120
Charles River Laboratories
Barr Pharmaceuticals, Inc.*
8,553
486,751
International, Inc.*†
2,402
134,872
Covidien Ltd.*
11,430
474,345
Brookdale Senior Living, Inc.†
3,040
121,022
Vertex Pharmaceuticals, Inc.*
12,329
473,557
Mylan Laboratories, Inc.
7,435
118,663
Henry Schein, Inc.*
7,570
460,559
Health Net, Inc.*
Total Common Stocks
8,411
454,615
(Cost $39,251,714)
50,962,916
28
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
HEALTH CARE FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
$
225,695
$
225,695
Total Repurchase Agreement
(Cost $225,695)
225,695
SECURITIES LENDING COLLATERAL 10.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
5,229,658
5,229,658
Total Securities Lending Collateral
(Cost $5,229,658)
5,229,658
Total Investments 110.3%
(Cost $44,707,067)
$ 56,418,269
Liabilities in Excess of
Other Assets – (10.3)%
$ (5,274,850)
Net Assets – 100.0%
$ 51,143,419
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
29
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INTERNET FUND
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
FACE
VALUE
COMMON STOCKS 99.5%
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
Cisco Systems, Inc.*
82,665
$
2,737,038
Lehman Brothers Holdings, Inc.
Google, Inc. — Class A*
3,698
2,097,764
issued 09/28/07 at 3.90%
Research In Motion Ltd.*
15,721
1,549,305
due 10/01/07
$
188,144
$
188,144
Qualcomm, Inc.
34,963
1,477,536
eBay, Inc.*†
36,736
1,433,439
Total Repurchase Agreement
(Cost $188,144)
188,144
Time Warner, Inc.
75,380
1,383,977
Amazon.com, Inc.*†
13,798
1,285,284
SECURITIES LENDING COLLATERAL 21.1%
Yahoo!, Inc.*†
39,871
1,070,138
Investment in Securities Lending Short Term
Juniper Networks, Inc.*†
25,895
948,016
Investment Portfolio Held by
Sun Microsystems, Inc.*
146,251
820,468
U.S. Bank (Note 8)
5,636,989
5,636,989
Broadcom Corp. — Class A*
22,290
812,248
Total Securities Lending Collateral
Symantec Corp.*†
38,046
737,331
(Cost $5,636,989)
5,636,989
Qwest Communications
International, Inc.*†
77,545
710,312
Total Investments 121.3%
Baidu.com — SP ADR*†
1,990
576,403
(Cost $27,415,665)
$ 32,445,449
Intuit, Inc.*†
Liabilities in Excess of
18,977
575,003
Other Assets – (21.3)%
$ (5,694,875)
Net Assets – 100.0%
Expedia, Inc.*
17,444
556,115
VeriSign, Inc.*†
15,469
521,924
$ 26,750,574
IAC/InterActiveCorp*†
15,639
464,009
Check Point Software Technologies
Ltd.*†
17,569
442,387
McAfee, Inc.*
12,070
420,881
BEA Systems, Inc.*
30,187
418,694
CheckFree Corp.*†
8,321
387,259
Priceline.com, Inc.*†
4,177
370,709
Red Hat, Inc.*†
16,900
335,803
Monster Worldwide, Inc.*†
9,812
334,197
Ciena Corp.*
8,545
325,394
E*Trade Financial Corp.*†
24,517
320,192
Akamai Technologies, Inc.*†
10,456
300,401
F5 Networks, Inc.*
8,006
297,743
Foundry Networks, Inc.*†
16,528
293,703
HLTH Corp.*†
19,715
279,362
Digital River, Inc.*
5,324
238,249
Palm, Inc.*†
14,284
232,401
ValueClick, Inc.*†
10,246
230,125
j2 Global Communications, Inc.*†
6,684
218,767
Netflix, Inc.*†
10,491
217,373
TIBCO Software, Inc.*†
27,226
201,200
CNET Networks, Inc.*
24,205
180,327
EarthLink, Inc.*
22,729
180,014
United Online, Inc.†
11,232
168,592
RealNetworks, Inc.*
24,651
167,134
Websense, Inc.*
8,193
161,648
S1 Corp.*
15,630
141,451
Total Common Stocks
(Cost $21,590,532)
26,620,316
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
30
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
LEISURE FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.6%
Applebee’s International, Inc.†
2,856
$
71,057
WMS Industries, Inc.*
2,145
71,000
Las Vegas Sands Corp.*†
3,497
$
466,570
Jack in the Box, Inc.*
1,086
70,416
McDonald’s Corp.
7,951
433,091
Marvel Entertainment, Inc.*
2,942
68,960
Walt Disney Co.†
12,457
428,396
Sonic Corp.*
2,861
66,947
Time Warner, Inc.
21,972
403,406
Cheesecake Factory, Inc.*†
2,773
65,082
News Corp. — Class A
16,459
361,933
Pinnacle Entertainment, Inc.*
2,324
63,283
Carnival Corp.†
5,936
287,481
Brunswick Corp.†
2,742
62,682
Wynn Resorts Ltd.
1,729
272,421
THQ, Inc.*†
2,416
60,352
MGM Mirage, Inc.*
2,967
265,369
Live Nation, Inc.*
2,801
59,521
Viacom, Inc. — Class B*
6,347
247,343
Polaris Industries, Inc.†
1,340
58,451
Starbucks Corp.*†
8,736
228,883
International Speedway Corp. —
Electronic Arts, Inc.*
4,078
228,327
Class A
1,261
57,829
Hilton Hotels Corp.†
4,826
224,361
Ameristar Casinos, Inc.†
2,050
57,605
Yum! Brands, Inc.
6,485
219,388
Panera Bread Co. — Class A*†
1,321
53,897
Harrah’s Entertainment, Inc.
2,427
210,979
Take-Two Interactive Software,
International Game Technology,
Inc.*†
3,126
53,392
Inc.†
4,736
204,122
Callaway Golf Co.
3,258
52,161
Marriott International, Inc. —
Pool Corp.†
1,947
48,636
Class A
4,694
204,048
Bob Evans Farms, Inc.
1,584
47,805
Starwood Hotels & Resorts
CKE Restaurants, Inc.
2,920
47,333
Worldwide, Inc.
2,797
169,918
Ruby Tuesday, Inc.
2,346
43,026
Mattel, Inc.†
6,441
151,106
CEC Entertainment, Inc.*
1,559
41,890
Royal Caribbean Cruises Ltd.
3,678
143,552
Total Common Stocks
Tim Hortons, Inc.†
4,053
141,247
Eastman Kodak Co.†
5,275
141,159
(Cost $5,616,493)
8,558,681
Activision, Inc.*
6,401
138,198
FACE
Darden Restaurants, Inc.
2,932
122,734
AMOUNT
Wyndham Worldwide Corp.
3,577
117,183
Station Casinos, Inc.
1,332
116,523
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
Penn National Gaming, Inc.*
1,957
115,502
Lehman Brothers Holdings, Inc.
Hasbro, Inc.†
3,664
102,152
Scientific Games Corp. — Class A*
2,674
issued 09/28/07 at 3.90%
100,542
DreamWorks Animation SKG,
due 10/01/07
$
78,986
78,986
Total Repurchase Agreement
Inc. — Class A*
2,904
97,052
Burger King Holdings, Inc.
3,707
94,491
(Cost $78,986)
78,986
Boyd Gaming Corp.
2,144
91,870
SECURITIES LENDING COLLATERAL 16.5%
Brinker International, Inc.
3,215
88,220
Regal Entertainment Group —
Investment in Securities Lending Short Term
Class A†
4,006
87,932
Investment Portfolio Held by
U.S. Bank (Note 8)
Wendy’s International, Inc.
2,491
86,961
1,413,947
1,413,947
Total Securities Lending Collateral
Life Time Fitness, Inc.*†
1,342
82,318
(Cost $1,413,947)
Bally Technologies Inc.*
2,319
82,162
1,413,947
Total Investments 117.0%
Vail Resorts, Inc.*†
1,292
80,479
Choice Hotels International, Inc.†
2,054
77,374
(Cost $7,109,426)
$ 10,051,614
Oakley, Inc.
2,574
74,723
Liabilities in Excess of
Orient-Express Hotels Ltd. —
Other Assets – (17.0)%
$ (1,460,159)
Class A
1,449
74,290
Net Assets – 100.0%
$
8,591,455
Gaylord Entertainment Co.*†
1,382
73,550
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
31
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
PRECIOUS METALS FUND
VALUE
FACE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
VALUE
COMMON STOCKS 99.6%
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
Freeport-McMoRan Copper & Gold,
Lehman Brothers Holdings, Inc.
Inc. — Class B
280,038
$
29,373,186
issued 09/28/07 at 3.90%
Newmont Mining Corp.
375,618
16,801,393
due 10/01/07
$
1,057,243
$
1,057,243
Barrick Gold Corp.
379,423
15,283,158
Total Repurchase Agreement
Goldcorp, Inc.†
459,606
14,045,559
(Cost $1,057,243)
1,057,243
Agnico-Eagle Mines Ltd.†
171,923
8,561,765
Yamana Gold, Inc.*†
702,821
8,279,231
SECURITIES LENDING COLLATERAL 23.4%
Gold Fields Ltd. — SP ADR
445,148
8,052,727
Investment in Securities Lending Short Term
Kinross Gold Corp.*†
U.S. Bank (Note 8)
496,286
7,434,364
Investment Portfolio Held by
AngloGold Ashanti Ltd. —
42,832,049
42,832,049
SP ADR†
149,783
7,023,325
Total Securities Lending Collateral
Pan American Silver Corp.*†
176,118
5,089,810
(Cost $42,832,049)
42,832,049
Meridian Gold, Inc.*
152,187
5,037,390
Total Investments 123.6%
Silver Wheaton Corp.*†
353,256
4,952,649
(Cost $115,886,436)
$
225,933,476
Coeur d’Alene Mines Corp.*†
1,256,073
4,760,517
Liabilities in Excess of
Silver Standard Resources, Inc.*†
126,074
4,701,299
Other Assets – (23.6)%
Cia de Minas Buenaventura SA —
$ (43,106,322)
SP ADR
92,202
4,405,412
Net Assets – 100.0%
$182,827,154
Royal Gold, Inc.†
124,988
4,093,357
Hecla Mining Co.*†
433,558
3,880,344
Novagold Resources, Inc.*†
223,531
3,690,497
Randgold Resources Ltd. —
SP ADR†
109,461
3,638,484
Harmony Gold Mining Co. Ltd. —
SP ADR*†
294,528
3,507,829
Golden Star Resources Ltd.*†
858,366
3,476,382
Apex Silver Mines Ltd.*†
158,170
3,076,407
Crystallex International Corp.*
913,508
2,895,820
Iamgold Corp.†
321,140
2,784,284
Stillwater Mining Co.*
267,720
2,754,839
Northgate Minerals Corp.*
803,402
2,281,662
Eldorado Gold Corp.*
357,437
2,162,494
Total Common Stocks
(Cost $71,997,144)
182,044,184
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
32
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
RETAILING FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.3%
Saks, Inc.
3,730
$
63,970
BJ’s Wholesale Club, Inc.*
1,913
63,435
Wal-Mart Stores, Inc.
13,147
$
573,867
J. Crew Group, Inc.*†
1,500
62,250
CVS Corp.
9,300
368,559
AnnTaylor Stores Corp.*
1,922
60,870
Target Corp.†
5,179
329,229
Penske Auto Group, Inc.
2,970
60,113
Home Depot, Inc.†
10,016
324,919
Longs Drug Stores Corp.
1,206
59,902
Amazon.com, Inc.*†
3,468
323,044
Guitar Center, Inc.*†
994
58,944
Walgreen Co.
6,762
319,437
RadioShack Corp.†
2,840
58,674
Lowe’s Cos., Inc.
9,940
278,519
Foot Locker, Inc.
3,770
57,794
Costco Wholesale Corp.
3,843
235,845
Tractor Supply Co.*†
1,251
57,659
Best Buy Co., Inc.†
4,473
205,848
Chico’s FAS, Inc.*
3,799
53,376
Kohl’s Corp.*
3,052
174,971
Bebe Stores, Inc.†
3,380
49,449
Sears Holdings Corp.*†
1,352
171,974
NutriSystem, Inc.*†
994
46,609
The Gap, Inc.†
9,266
170,865
Dillard’s, Inc. — Class A†
2,075
45,297
TJX Cos., Inc.†
5,734
166,687
Collective Brands, Inc.*†
2,040
45,002
Staples, Inc.
7,669
164,807
Aeropostale, Inc.*†
2,357
44,924
J.C. Penney Co., Inc.
2,504
158,679
Rent-A-Center, Inc.*†
2,304
41,772
GameStop Corp. — Class A*
2,780
156,653
Charming Shoppes, Inc.*†
4,850
40,740
Macy’s, Inc.
4,834
156,235
Tween Brands, Inc.*†
1,160
38,094
Nordstrom, Inc.†
3,202
150,142
Circuit City Stores, Inc.†
4,735
37,454
Liberty Media Corp - Interactive*
7,476
143,614
Pacific Sunwear of California, Inc.*†
2,513
37,192
Expedia, Inc.*
4,390
139,953
Coldwater Creek, Inc.*
2,842
30,864
Bed Bath & Beyond, Inc.*
3,899
133,034
Children’s Place Retail Stores, Inc.*†
1,056
25,640
Genuine Parts Co.
2,625
131,250
Total Common Stocks
Sherwin-Williams Co.†
1,995
131,091
Abercrombie & Fitch Co. — Class A
(Cost $5,872,230)
8,491,370
1,553
125,327
Limited Brands, Inc.†
5,293
121,157
FACE
Tiffany & Co.
2,244
117,473
AMOUNT
IAC/InterActiveCorp*†
3,940
116,900
REPURCHASE AGREEMENT 0.6%
AutoZone, Inc.*†
982
114,050
Repurchase Agreement (Note 5)
American Eagle Outfitters, Inc.†
4,146
109,081
Lehman Brothers Holdings, Inc.
Guess?, Inc.
1,930
94,628
Priceline.com, Inc.*†
1,050
issued 09/28/07 at 3.90%
93,188
Petsmart, Inc.†
due 10/01/07
$
48,418
48,418
2,907
92,733
Total Repurchase Agreement
Office Depot, Inc.*
4,245
87,532
(Cost $48,418)
48,418
Dollar Tree Stores, Inc.*†
2,128
86,269
Williams-Sonoma, Inc.†
2,640
86,117
SECURITIES LENDING COLLATERAL 23.3%
O’Reilly Automotive, Inc.*†
2,507
83,759
Investment in Securities Lending Short Term
Urban Outfitters, Inc.*†
3,793
82,687
CarMax, Inc.*†
4,042
82,174
Investment Portfolio Held by
Big Lots, Inc.*†
2,680
79,971
U.S. Bank (Note 8)
1,997,239
1,997,239
Dick’s Sporting Goods, Inc.*
1,188
79,774
Total Securities Lending Collateral
Family Dollar Stores, Inc.†
3,000
79,680
(Cost $1,997,239)
1,997,239
Ross Stores, Inc.
3,015
77,305
Total Investments 123.2%
(Cost $7,917,887)
AutoNation, Inc.*†
4,336
76,834
$ 10,537,027
Advance Auto Parts, Inc.
2,281
76,550
Liabilities in Excess of
Rite Aid Corp.*†
15,864
73,292
Other Assets – (23.2)%
$
(1,986,533)
Men’s Wearhouse, Inc.
1,447
73,102
Net Assets – 100.0%
$
8,550,494
OfficeMax, Inc.
1,960
67,169
Barnes & Noble, Inc.
1,854
65,372
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
33
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
TECHNOLOGY FUND
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
COMMON STOCKS 99.5%
Avaya, Inc.*
19,585
$
332,162
Fiserv, Inc.*
6,528
332,014
Microsoft Corp.
49,118
$
1,447,016
Micron Technology, Inc.*†
29,652
329,137
Cisco Systems, Inc.*
34,077
1,128,289
Microchip Technology, Inc.†
9,046
328,551
Nokia Oyj — SP ADR†
26,890
1,019,938
Iron Mountain, Inc.*†
10,663
325,008
International Business Machines
Lam Research Corp.*†
6,096
324,673
Corp.†
8,566
1,009,075
Juniper Networks, Inc.*†
8,757
320,594
Intel Corp.
35,022
905,669
Fidelity National Information
Apple, Inc.*
5,778
887,154
Services, Inc.
7,104
315,205
Hewlett-Packard Co.
17,113
852,056
CDW Corp.*
3,609
314,705
Google, Inc. — Class A*
1,400
794,178
Check Point Software Technologies
Oracle Corp.*
35,337
765,046
Ltd.*†
12,320
310,218
Dell, Inc.*
24,374
672,722
Varian Semiconductor Equipment
Taiwan Semiconductor
Associates, Inc.*
5,624
300,996
Manufacturing Co. Ltd. —
Trimble Navigation Ltd.*
7,668
300,662
SP ADR
64,357
651,293
Nortel Networks Corp.*†
17,660
299,867
SAP AG — SP ADR†
10,910
640,090
McAfee, Inc.*
8,574
298,975
Corning, Inc.
24,339
599,956
Alliance Data Systems Corp.*†
3,836
297,060
Research In Motion Ltd.*
5,960
587,358
VeriFone Holdings, Inc.*†
6,600
292,578
Qualcomm, Inc.
13,196
557,663
Nvidia Corp.*
8,016
290,500
Applied Materials, Inc.
26,186
542,050
Ceridian Corp.*
8,250
286,605
eBay, Inc.*†
13,793
538,203
CheckFree Corp.*†
6,030
280,636
Adobe Systems, Inc.*
12,206
532,914
Intersil Corp. — Class A
8,394
280,611
Infosys Technologies Ltd. —
Affiliated Computer Services, Inc. —
SP ADR
10,900
527,451
Class A*
5,355
269,035
Telefonaktiebolaget LM Ericsson
Sun Microsystems, Inc.*
47,933
268,904
— SP ADR†
12,590
501,082
Nuance Communications, Inc.*†
13,920
268,795
Automatic Data Processing, Inc.
10,881
499,764
Synopsys, Inc.*
9,921
268,661
Accenture Ltd. — Class A†
12,160
489,440
JDS Uniphase Corp.*
17,593
263,191
Texas Instruments, Inc.
12,697
464,583
Lexmark International, Inc.*
6,326
262,719
EMC Corp*
22,004
457,683
Red Hat, Inc.*†
13,205
262,383
Alcatel-Lucent†
43,998
447,900
Broadcom Corp. — Class A*†
7,129
259,781
Tyco Electronics Ltd.
12,200
432,246
Tellabs, Inc.*
27,155
258,516
Motorola, Inc.
23,131
428,617
Ciena Corp.*
6,690
254,755
Paychex, Inc.†
10,408
426,728
Novellus Systems, Inc.*†
9,338
254,554
SanDisk Corp.*†
7,592
418,319
Integrated Device Technology, Inc.*
15,948
246,875
Xerox Corp.*
23,861
413,750
Ingram Micro, Inc. — Class A*
12,435
243,850
STMicroelectronics NV — SP ADR
23,779
398,298
Electronic Arts, Inc.*
4,297
240,589
Cognizant Technology Solutions
ASML Holding NV — SP ADR
7,275
239,057
Corp. — Class A*
4,959
395,579
Akamai Technologies, Inc.*†
8,291
238,200
Analog Devices, Inc.†
10,308
372,737
F5 Networks, Inc.*
6,404
238,165
Yahoo!, Inc.*†
13,830
371,197
Diebold, Inc.†
5,161
234,413
KLA-Tencor Corp.†
6,583
367,200
Equinix, Inc.*
2,640
234,142
Satyam Computer Services Ltd. —
Symantec Corp.*†
11,870
230,041
SP ADR
13,770
356,505
CommScope, Inc.*
4,540
228,090
Computer Sciences Corp.*
6,287
351,443
Western Union Co.
10,610
222,492
Network Appliance, Inc.*
12,911
347,435
Teradyne, Inc.*†
15,929
219,820
Marvell Technology Group Ltd.*
21,180
346,717
Polycom, Inc.*†
8,131
218,399
NCR Corp.*
6,879
342,574
Convergys Corp.*
12,349
214,379
Electronic Data Systems Corp.
15,646
341,709
Seagate Technology†
8,240
210,779
Linear Technology Corp.†
9,712
339,823
Compuware Corp.*
26,255
210,565
Maxim Integrated Products, Inc.
11,505
337,672
Amkor Technology, Inc.*†
18,190
209,549
Harris Corp.
5,825
336,627
Unisys Corp.*
30,821
204,035
National Semiconductor Corp.
12,388
335,963
Agilent Technologies, Inc.*
5,145
189,748
Amdocs, Ltd.*
8,960
333,222
CA, Inc.†
7,372
189,608
34
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
TECHNOLOGY FUND
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
VALUE
FACE
VALUE
MEMC Electronic Materials, Inc.*
3,114
$
183,290
REPURCHASE AGREEMENT 0.9%
NAVTEQ Corp.*
2,313
180,345
Repurchase Agreement (Note 5)
Infineon Technologies AG —
Lehman Brothers Holdings, Inc.
SP ADR*
10,489
180,201
issued 09/28/07 at 3.90%
Autodesk, Inc.*
3,527
176,244
due 10/01/07
$
365,474
$
365,474
AU Optronics Corp. — SP ADR†
10,211
172,770
Total Repurchase Agreement
Solectron Corp.*
39,587
154,389
Baidu.com — SP ADR*†
(Cost $365,474)
365,474
520
150,618
Intuit, Inc.*
4,943
149,773
SECURITIES LENDING COLLATERAL 14.4%
MasterCard, Inc.†
989
146,342
Investment in Securities Lending Short Term
Altera Corp.†
5,641
135,835
Investment Portfolio Held by
VeriSign, Inc.*
3,794
128,010
U.S. Bank (Note 8)
6,184,996
6,184,996
Citrix Systems, Inc.*†
3,135
126,403
Total Securities Lending Collateral
Atmel Corp.*
23,535
121,441
(Cost $6,184,996)
6,184,996
Amphenol Corp. — Class A
2,925
116,298
Flextronics International Ltd.*†
10,170
Total Investments 114.8%
113,701
(Cost $42,594,859)
$ 49,421,180
Xilinx, Inc.
4,339
113,421
Advanced Micro Devices, Inc.*
8,006
105,679
Liabilities in Excess of
Other Assets – (14.8)%
$ (6,355,672)
Activision, Inc.*
4,775
103,092
BMC Software, Inc.*
3,231
100,904
Net Assets – 100.0%
$ 43,065,508
Western Digital Corp.*
3,953
100,090
Cadence Design Systems, Inc.*†
4,251
94,330
Salesforce.com, Inc.*
1,833
94,070
Avnet, Inc.*
2,280
90,881
BEA Systems, Inc.*
5,883
81,597
Arrow Electronics, Inc.*
1,912
81,298
Jabil Circuit, Inc.
3,475
79,369
LSI Logic Corp.*
10,672
79,186
DST Systems, Inc.*†
916
78,602
Cypress Semiconductor Corp.*†
2,599
75,917
Business Objects SA — SP ADR*
1,470
65,959
ON Semiconductor Corp.*†
4,320
54,259
Hewitt Associates, Inc. — Class A*
1,540
53,977
Flir Systems, Inc.*†
970
53,728
Cognos Inc*
1,270
52,743
Mettler Toledo International, Inc.*
500
51,000
Global Payments, Inc.
1,049
46,387
Brocade Communications Systems,
Inc.*
4,720
40,403
Factset Research Systems, Inc.†
478
32,767
Anixter International, Inc.*
390
32,156
Riverbed Technology, Inc.*
660
26,657
Molex, Inc.†
698
18,797
Total Common Stocks
(Cost $36,044,389)
42,870,710
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
35
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
TELECOMMUNICATIONS FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.6%
F5 Networks, Inc.*
9,024
$
335,603
CommScope, Inc.*†
6,500
326,560
AT&T, Inc.
77,360
$
3,273,102
Riverbed Technology, Inc.*
7,860
317,465
Cisco Systems, Inc.*
92,240
3,054,066
Polycom, Inc.*†
10,465
281,090
Vodafone Group PLC — SP ADR†
79,982
2,903,347
Total Common Stocks
Nokia Oyj — SP ADR
73,811
2,799,651
(Cost $29,719,854)
Verizon Communications, Inc.
52,433
2,321,733
41,258,488
Research In Motion Ltd.*
17,550
1,729,552
FACE
America Movil SAB de CV —
AMOUNT
SP ADR†
26,340
1,685,760
Qualcomm, Inc.
39,015
1,648,774
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
Telefonaktiebolaget LM Ericsson
Lehman Brothers Holdings, Inc.
— SP ADR†
37,680
1,499,664
Sprint Nextel Corp.†
71,849
1,365,131
issued 09/28/07 at 3.90%
due 10/01/07
$
211,930
211,930
Motorola, Inc.
71,898
1,332,270
Total Repurchase Agreement
Corning, Inc.
49,341
1,216,256
BCE, Inc.
28,510
1,141,825
(Cost $211,930)
211,930
Juniper Networks, Inc.*†
28,894
1,057,809
SECURITIES LENDING COLLATERAL 18.0%
Alltel Corp.
14,176
987,784
American Tower Corp. — Class A*
Investment in Securities Lending Short Term
19,714
858,348
Investment Portfolio Held by
Alcatel-Lucent†
79,827
812,639
Qwest Communications
U.S. Bank (Note 8)
7,480,463
7,480,463
International, Inc.*†
Total Securities Lending Collateral
86,521
792,532
(Cost $7,480,463)
7,480,463
NII Holdings, Inc. — Class B*†
8,847
726,781
Crown Castle International Corp.*†
17,514
Total Investments 118.1%
711,594
Harris Corp.
9,901
572,179
(Cost $37,412,247)
$ 48,950,881
Avaya, Inc.*
32,557
552,167
Liabilities in Excess of
MetroPCS Communications, Inc.*†
20,080
547,782
Other Assets – (18.1)%
$ (7,508,449)
Embarq Corp.
9,785
544,046
Net Assets – 100.0%
$ 41,442,432
Windstream Corp.†
35,784
505,270
Tele Norte Leste Participacoes
SA — ADR
22,320
501,307
Level 3 Communications, Inc.*†
100,260
466,209
Nortel Networks Corp.*†
27,170
461,347
Leap Wireless International, Inc.
— Class B*
5,545
451,197
CenturyTel, Inc.
9,496
438,905
Citizens Communications Co.†
29,722
425,619
Brasil Telecom Participacoes SA
— SP ADR
5,220
389,516
SBA Communications Corp.*†
10,915
385,081
Telephone & Data Systems, Inc.
5,685
379,474
Tellabs, Inc.*
39,418
375,259
JDS Uniphase Corp.*
24,686
369,303
Ciena Corp.*
9,630
366,710
Clearwire Corp.*†
14,230
347,781
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
36
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
TRANSPORTATION FUND
VALUE
FACE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
COMMON STOCKS 100.6%
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
United Parcel Service, Inc. —
Lehman Brothers Holdings, Inc.
Class B†
13,019
$
977,727
issued 09/28/07 at 3.90%
Canadian National Railway Co.†
13,360
761,520
due 10/01/07
$
59,183
$
59,183
FedEx Corp.
7,170
751,058
Total Repurchase Agreement
Union Pacific Corp.
6,546
740,091
Burlington Northern Santa Fe
(Cost $59,183)
59,183
Corp.†
8,727
708,371
SECURITIES LENDING COLLATERAL 32.6%
Norfolk Southern Corp.†
11,642
604,336
Investment in Securities Lending Short Term
CSX Corp.†
13,228
565,232
Investment Portfolio Held by
Expeditors International Washington,
U.S. Bank (Note 8)
3,791,347
3,791,347
Inc.†
9,719
459,709
Total Securities Lending Collateral
Southwest Airlines Co.†
30,597
452,836
(Cost $3,791,347)
3,791,347
CH Robinson Worldwide, Inc.†
7,748
420,639
Total Investments 133.7%
Hertz Global Holdings, Inc.*
14,920
338,982
UAL Corp.*†
6,950
323,384
(Cost $11,816,044)
$ 15,532,928
AMR Corp.*†
Liabilities in Excess of
12,491
278,424
Other Assets – (33.7)%
$ (3,912,753)
Delta Air Lines, Inc.*†
14,687
263,632
Northwest Airlines Corp.*†
14,399
256,302
Net Assets – 100.0%
$ 11,620,175
J.B. Hunt Transport Services, Inc.
9,241
243,038
Laidlaw International, Inc.
6,519
229,599
Continental Airlines, Inc. —
Class B*†
6,932
228,964
Ryder System, Inc.
4,554
223,146
Kansas City Southern*†
6,035
194,146
Landstar System, Inc.
4,568
191,719
Alexander & Baldwin, Inc.†
3,818
191,396
UTI Worldwide, Inc.†
8,220
188,896
Con-way, Inc.
4,061
186,806
US Airways Group, Inc.*
7,057
185,246
Avis Budget Group, Inc.*
7,970
182,433
SkyWest, Inc.
6,988
175,888
American Commercial Lines, Inc.*†
6,580
156,143
Knight Transportation, Inc.†
8,984
154,615
JetBlue Airways Corp.*†
16,619
153,227
YRC Worldwide, Inc.*†
5,357
146,353
Werner Enterprises, Inc.†
8,124
139,327
Atlas Air Worldwide Holdings Co.,
Inc.*
2,556
131,966
HUB Group, Inc. — Class A*†
4,390
131,832
Alaska Air Group, Inc.*
5,255
121,338
Old Dominion Freight Line, Inc.*†
4,720
113,138
Copa Holdings SA
2,770
110,939
Total Common Stocks
(Cost $7,965,514)
11,682,398
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
37
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
UTILITIES FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
COMMON STOCKS 100.0%
Sierra Pacific Resources
21,833
$
343,433
Aqua America, Inc.†
15,022
340,699
Exelon Corp.
18,288
$
1,378,184
AGL Resources, Inc.
8,518
337,483
TXU Corp.
16,087
1,101,477
Puget Energy, Inc.
13,573
332,131
Southern Co.†
28,847
1,046,569
OGE Energy Corp.†
9,791
324,082
Dominion Resources, Inc.
12,412
1,046,332
DPL, Inc.†
12,267
322,131
FPL Group, Inc.
16,504
1,004,764
UGI Corp.
12,147
315,579
Duke Energy Corp.†
51,024
953,639
Great Plains Energy, Inc.†
10,527
303,283
Public Service Enterprise Group,
Atmos Energy Corp.
10,552
298,833
Inc.
10,332
909,113
Westar Energy, Inc.†
11,718
287,794
Entergy Corp.
8,315
900,431
Nicor, Inc.†
6,327
271,428
FirstEnergy Corp.
13,275
840,838
Portland General Electric Co.
9,240
256,872
American Electric Power Co., Inc.
18,219
839,532
PNM Resources, Inc.†
10,191
237,246
PG&E Corp.
17,204
822,351
Edison International
14,807
Total Common Stocks
821,048
PPL Corp.
17,463
808,537
(Cost $23,901,875)
32,546,872
AMOUNT
Sempra Energy
12,984
754,630
FACE
Constellation Energy Group, Inc.
8,789
754,008
Consolidated Edison, Inc.
15,023
695,565
REPURCHASE AGREEMENT 0.7%
Progress Energy, Inc.†
14,585
683,307
Repurchase Agreement (Note 5)
AES Corp.*
33,791
677,172
Ameren Corp.
12,573
660,083
Lehman Brothers Holdings, Inc.
NRG Energy, Inc.*
issued 09/28/07 at 3.90%
14,656
619,802
due 10/01/07
$
244,771
244,771
Mirant Corp.*
15,000
610,200
Xcel Energy, Inc.
27,557
593,578
Total Repurchase Agreement
(Cost $244,771)
244,771
Questar Corp.
11,098
582,978
Allegheny Energy, Inc.*
10,918
570,575
SECURITIES LENDING COLLATERAL 12.3%
DTE Energy Co.†
11,699
566,700
Reliant Energy, Inc.*
21,613
553,293
Investment in Securities Lending Short Term
Investment Portfolio Held by
Equitable Resources, Inc.
9,514
493,491
U.S. Bank (Note 8)
4,002,359
4,002,359
Wisconsin Energy Corp.
10,040
452,101
Total Securities Lending Collateral
Pepco Holdings, Inc.
16,023
433,903
(Cost $4,002,359)
4,002,359
MDU Resources Group, Inc.
15,480
430,963
NiSource, Inc.
22,388
428,506
Total Investments 113.0%
(Cost $28,149,005)
$ 36,794,002
Oneok, Inc.
8,980
425,652
CenterPoint Energy, Inc.†
26,302
421,621
Liabilities in Excess of
SCANA Corp.†
10,655
412,775
Other Assets – (13.0)%
$ (4,231,426)
Dynegy Inc.*
44,389
410,154
Net Assets – 100.0%
$ 32,562,576
Energy East Corp.
15,155
409,943
Northeast Utilities
14,335
409,551
Alliant Energy Corp.†
10,533
403,625
National Fuel Gas Co.†
8,540
399,757
Energen Corp.
6,888
393,443
Integrys Energy Group, Inc.
7,528
385,659
Pinnacle West Capital Corp.
9,723
384,156
CMS Energy Corp.
22,054
370,948
Southern Union Co.
11,695
363,831
TECO Energy, Inc.†
21,369
351,093
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
38
| THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
This page intentionally left blank.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
39
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
Banking
Basic
Bio-
Consumer
Materials
technology
Products
Fund
Fund
Fund
Fund
ASSETS
Investment Securities* (Notes 1, 2 and 8)
$ 19,124,911
$162,020,573
$ 131,039,232
$ 27,229,367
Repurchase Agreements* (Note 5)
7,651
179,656
—
27,436
Cash
—
968
—
—
Receivable for Securities Sold (Note 1)
48,743
—
965,913
—
Receivable for Fund Shares Sold
911,339
2,844,164
1,352,648
60,809
Investment Income Receivable (Note 1)
32,162
105,130
—
71,744
Total Assets
20,124,806
165,150,491
133,357,793
27,389,356
LIABILITIES
Payable upon Return of Securities Loaned (Note 8)
3,117,036
29,291,969
28,301,133
1,581,837
Payable for Securities Purchased (Note 1)
865,603
1,806,252
561,953
—
Payable for Fund Shares Redeemed
185,459
370,556
740,484
42,174
Investment Advisory Fees Payable (Note 3)
7,802
74,914
61,435
15,087
Transfer Agent and Administrative Fees Payable (Note 3)
2,295
22,034
18,069
4,437
Distribution and Service Fees Payable (Note 3)
616
6,260
1,989
2,407
Portfolio Accounting Fees Payable (Note 3)
918
8,813
7,228
1,775
Custody Fees Payable
297
2,644
3,664
542
Cash Due to Custodian Bank
—
—
351,963
—
Other Liabilities
5,070
62,358
38,494
18,795
Total Liabilities
4,185,096
31,645,800
30,086,412
1,667,054
NET ASSETS
$ 15,939,710
$133,504,691
$ 103,271,381
$ 25,722,302
NET ASSETS CONSIST OF
Paid-In Capital
$ 60,199,983
$123,279,772
$ 243,388,395
$ 33,428,643
Undistributed Net Investment Income (Loss)
251,551
219,684
(322,388)
731,560
Accumulated Net Realized Loss on Investments
(45,820,493)
(21,937,953)
(176,507,496)
(14,516,493)
Net Unrealized Appreciation on Investments
1,308,669
31,943,188
36,712,870
6,078,592
NET ASSETS
$ 15,939,710
$133,504,691
$ 103,271,381
$ 25,722,302
Investor Class
$ 12,856,534
$
99,597,429
$
90,903,988
$ 12,114,955
Advisor Class
585,053
13,708,940
6,397,015
7,801,031
A-Class
880,954
7,024,251
1,950,237
2,196,593
C-Class
1,617,169
13,174,071
4,020,141
3,609,723
SHARES OUTSTANDING
Investor Class
1,261,862
1,990,731
3,798,206
318,826
Advisor Class
61,089
285,838
281,297
214,309
A-Class
91,123
145,153
85,245
59,896
C-Class
171,188
281,254
179,542
101,295
NET ASSET VALUES
Investor Class
$10.19
$50.03
$23.93
$38.00
Advisor Class
9.58
47.96
22.74
36.40
A-Class
9.67
48.39
22.88
36.67
A-Class Maximum Offering Price**
10.15
50.80
24.02
38.50
C-Class
9.45
46.84
22.39
35.64
$44,707,067, $27,415,665, $7,109,426 and, $115,886,436, respectively.
* The cost of investments is $17,823,893, $130,257,041, $94,326,362, $21,178,211, $38,132,324, $82,461,622, $202,682,689, $26,284,948,
**
Net asset value adjusted for the maximum sales charge of 4.75% of offering price.
40
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
September 30, 2007
Electronics
Energy
Services
Services
Care
Internet
Leisure
Metals
Energy
Financial
Health
Precious
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
$
47,006,609
$136,028,303
$298,191,560
$ 28,429,194
$ 56,192,574
$ 32,257,305
$
9,972,628
$224,876,233
211,766
820,548
2,372,942
12,688
225,695
188,144
78,986
1,057,243
—
—
—
1,081
—
—
—
—
—
1,663,534
—
—
—
1,406,697
163,443
5,647,339
6,299,151
911,296
1,639,493
380,087
1,402,268
422,217
5,330
897,881
840
40,023
58,134
32,936
35,183
61
1,925
12,606
53,518,366
139,463,704
302,262,129
28,855,986
57,855,720
34,274,424
10,222,312
232,491,302
5,200,500
18,206,065
64,265,799
3,517,538
5,229,658
5,636,989
1,413,947
42,832,049
6,193,756
—
1,291,733
219,625
1,178,191
—
—
—
74,292
2,758,412
2,336,633
38,040
225,654
1,860,712
201,097
6,582,237
17,796
72,083
138,209
12,716
32,394
12,334
5,311
101,205
5,234
21,201
40,650
3,740
9,528
3,628
1,562
33,735
1,208
11,876
16,135
1,336
3,682
1,120
980
9,178
2,094
8,480
16,260
1,496
3,811
1,451
625
13,494
628
2,544
4,878
581
1,203
528
275
4,048
—
—
—
—
—
—
—
—
12,149
56,690
96,578
14,482
28,180
7,088
7,060
88,202
11,507,657
21,137,351
68,206,875
3,809,554
6,712,301
7,523,850
1,630,857
49,664,148
$
42,010,709
$118,326,353
$234,055,254
$ 25,046,432
$ 51,143,419
$ 26,750,574
$
8,591,455
$182,827,154
$ 195,415,791
$
67,632,741
$204,528,543
$ 63,219,104
$ 66,162,661
$ 57,386,030
$ 20,985,476
$125,453,514
(58,272)
(273,319)
(1,070,794)
417,840
(152,919)
(78,502)
(14,819)
(649,730)
(162,432,861)
(3,420,298)
(67,284,308)
(40,747,446)
(26,577,525)
(35,586,738)
(15,321,390)
(52,023,670)
9,086,051
54,387,229
97,881,813
2,156,934
11,711,202
5,029,784
2,942,188
110,047,040
$
42,010,709
$118,326,353
$234,055,254
$ 25,046,432
$ 51,143,419
$ 26,750,574
$
8,591,455
$182,827,154
$
35,815,005
$
63,607,057
$156,012,139
$ 18,548,917
$ 30,577,495
$ 21,800,632
$
4,029,799
$144,105,453
1,142,658
19,816,940
27,388,577
3,025,369
13,122,322
3,189,386
2,431,195
7,224,383
199,785
6,747,845
14,736,529
625,413
919,138
180,326
205,779
6,006,116
4,853,261
28,154,511
35,918,009
2,846,733
6,524,464
1,580,230
1,924,682
25,491,202
2,610,985
2,283,710
2,581,229
1,377,576
1,889,269
452,626
106,380
2,188,352
87,546
742,084
473,024
233,344
851,628
68,905
67,574
111,904
15,161
250,767
252,419
47,927
59,248
3,866
5,682
92,331
377,311
1,080,070
632,919
224,926
431,446
34,946
54,082
411,757
$13.72
$27.85
$60.44
$13.46
$16.18
$48.16
$37.88
$65.85
13.05
26.70
57.90
12.97
15.41
46.29
35.98
64.56
13.18
26.91
58.38
13.05
15.51
46.65
36.22
65.05
13.84
28.25
61.29
13.70
16.28
48.98
38.03
68.29
12.86
26.07
56.75
12.66
15.12
45.22
35.59
61.91
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
41
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (concluded)
Telecom-
Retailing
Technology
munications
Transportation
Fund
Fund
Fund
Fund
ASSETS
Investment Securities* (Notes 1, 2 and 8)
$ 10,488,609
$
49,055,706
$ 48,738,951
$ 15,473,745
Repurchase Agreements* (Note 5)
48,418
365,474
211,930
59,183
Receivable for Securities Sold (Note 1)
—
—
352,066
—
Receivable for Fund Shares Sold
27,995
1,962,553
27,739
1,394,808
Investment Income Receivable (Note 1)
4,358
8,943
31,048
11,729
Total Assets
10,569,380
51,392,676
49,361,734
16,939,465
LIABILITIES
Payable upon Return of Securities Loaned (Note 8)
1,997,239
6,184,996
7,480,463
3,791,347
Payable for Securities Purchased (Note 1)
—
1,744,138
—
1,236,448
Payable for Fund Shares Redeemed
7,766
340,125
379,513
268,186
Investment Advisory Fees Payable (Note 3)
5,514
25,209
24,101
8,978
Transfer Agent and Administrative Fees Payable (Note 3)
1,622
7,415
7,089
2,641
Distribution and Service Fees Payable (Note 3)
960
2,568
3,235
1,737
Portfolio Accounting Fees Payable (Note 3)
649
2,966
2,835
1,056
Custody Fees Payable
248
890
851
350
Other Liabilities
4,888
18,861
21,215
8,547
Total Liabilities
2,018,886
8,327,168
7,919,302
5,319,290
NET ASSETS
$
8,550,494
$
43,065,508
$ 41,442,432
$ 11,620,175
NET ASSETS CONSIST OF
Paid-In Capital
$ 40,217,471
$110,849,832
$ 71,600,943
$ 26,184,032
Undistributed Net Investment Income (Loss)
(36,036)
(155,822)
68,369
8,627
Accumulated Net Realized Loss on Investments
(34,250,081)
(74,454,823)
(41,765,514)
(18,289,368)
Net Unrealized Appreciation on Investments
2,619,140
6,826,321
11,538,634
3,716,884
NET ASSETS
$
8,550,494
$
43,065,508
$ 41,442,432
$ 11,620,175
Investor Class
$
4,783,189
$
30,557,508
$ 27,533,893
$
4,857,050
Advisor Class
1,263,945
6,049,123
3,930,482
3,464,808
A-Class
116,309
1,025,951
2,515,879
308,418
C-Class
2,387,051
5,432,926
7,462,178
2,989,899
SHARES OUTSTANDING
Investor Class
354,468
2,123,131
1,236,491
170,984
Advisor Class
97,192
437,877
184,537
130,030
A-Class
8,888
73,972
117,686
11,484
C-Class
188,862
400,566
357,160
111,409
NET ASSET VALUES
Investor Class
$13.49
$14.39
$22.27
$28.41
Advisor Class
13.00
13.81
21.30
26.65
A-Class
13.09
13.87
21.38
26.86
A-Class Maximum Offering Price**
13.74
14.56
22.45
28.20
C-Class
12.64
13.56
20.89
26.84
**
Net asset value adjusted for the maximum sales charge of 4.75% of offering price.
*
The cost of investments is $7,917,887, $42,594,859, $37,412,247, $11,816,044 and, $28,149,005, respectively.
42
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
September 30, 2007
Fund
Utilities
$36,549,231
244,771
904,072
2,760,865
64,146
40,523,085
4,002,359
—
3,902,056
20,080
5,906
2,094
2,362
850
24,802
7,960,509
$32,562,576
$24,947,486
797,055
(1,826,962)
8,644,997
$32,562,576
$21,461,350
2,967,611
2,938,400
5,195,215
675,874
97,432
95,702
176,760
$31.75
30.46
30.70
32.23
29.39
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
43
STATEMENTS OF OPERATIONS (Unaudited)
Basic
Bio-
Consumer
Banking
Materials
technology
Products
Fund
Fund
Fund
Fund
INVESTMENT INCOME
Interest (Note 1)
$
1,581
$
19,652
$
6,057
$
4,870
Income from Securities Lending, net (Note 8)
2,362
38,159
71,484
3,095
Dividends, Net of Foreign Tax Withheld* (Note 1)
210,343
1,074,537
167,750
597,779
Total Income
214,286
1,132,348
245,291
605,744
EXPENSES
Investment Advisory Fees (Note 3)
50,710
635,551
323,577
177,075
Transfer Agent and Administrative Fees (Note 3)
14,915
186,927
95,170
52,081
Distribution & Service Fees (Note 3):
Advisor Class
2,392
40,807
13,714
51,300
A-Class
372
8,950
1,262
2,806
C-Class
11,673
56,213
13,985
19,026
Portfolio Accounting Fees (Note 3)
5,966
74,771
38,068
20,832
Registration Fees
1,498
13,941
15,664
8,603
Trustees’ Fees**
412
5,185
3,538
2,158
Custody Fees
2,190
22,007
26,706
5,709
Miscellaneous
6,743
89,295
35,995
19,447
Total Expenses
96,871
1,133,647
567,679
359,037
Net Investment Income (Loss)
117,415
(1,299)
(322,388)
246,707
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities
(601,407)
1,302,901
5,976,395
1,464,951
Total Net Realized Gain (Loss)
(601,407)
1,302,901
5,976,395
1,464,951
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities
(362,133)
16,561,280
4,003,767
(1,209,568)
Net Change in Unrealized Appreciation (Depreciation)
(362,133)
16,561,280
4,003,767
(1,209,568)
Net Gain (Loss) on Investments
(963,540)
17,864,181
9,980,162
255,383
Net Increase (Decrease) in Net Assets from Operations
$(846,125)
$17,862,882
$9,657,774
$
502,090
**
Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
* Foreign tax withheld of $8,062, $15,784, $0, $0, $10,608, $9,160, $0, $11,548, $20,402, $0, $0, and $18,543, respectively.
44
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Period Ended September 30, 2007
Energy
Financial
Health
Precious
Electronics
Energy
Services
Services
Care
Internet
Leisure
Metals
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
$
3,348
$
14,450
$
33,782
$
5,710
$
6,463
$
2,098
$
1,770
$
23,019
4,789
19,595
46,249
5,955
3,537
1,764
3,349
63,308
119,602
703,817
493,273
467,337
338,962
9,765
72,111
537,587
127,739
737,862
573,304
479,002
348,962
13,627
77,230
623,914
102,073
519,831
867,985
151,844
261,908
49,476
44,086
669,119
30,021
152,891
255,290
44,660
77,032
14,552
12,966
223,039
4,492
47,824
61,556
23,833
40,800
4,987
7,740
17,931
225
7,496
14,939
848
1,147
142
439
6,399
16,223
116,308
162,197
20,351
36,050
6,322
11,496
111,466
12,009
61,157
101,886
17,864
30,813
5,821
5,187
89,216
4,633
21,959
30,586
8,118
12,109
3,357
5,892
38,350
1,051
5,491
8,486
1,828
2,905
682
1,051
9,034
3,556
16,997
32,178
6,453
9,452
2,390
2,614
27,111
11,728
61,227
108,995
15,956
29,665
4,400
578
81,979
186,011
1,011,181
1,644,098
291,755
501,881
92,129
92,049
1,273,644
(58,272)
(273,319)
(1,070,794)
187,247
(152,919)
(78,502)
(14,819)
(649,730)
1,481,195
10,250,297
5,087,452
(108,279)
3,012,858
135,831
2,247,533
15,950,698
1,481,195
10,250,297
5,087,452
(108,279)
3,012,858
135,831
2,247,533
15,950,698
392,193
11,965,744
38,604,900
(1,605,186)
387,353
1,929,097
(1,666,996)
12,366,420
392,193
11,965,744
38,604,900
(1,605,186)
387,353
1,929,097
(1,666,996)
12,366,420
1,873,388
22,216,041
43,692,352
(1,713,465)
3,400,211
2,064,928
580,537
28,317,118
$1,815,116
$21,942,722
$42,621,558
$(1,526,218)
$3,247,292
$1,986,426
$
565,718
$27,667,388
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
45
STATEMENTS OF OPERATIONS (Unaudited) (concluded)
Telecom-
Retailing
Technology
munications
Transportation
Fund
Fund
Fund
Fund
INVESTMENT INCOME
Interest (Note 1)
$
1,617
$
6,237
$
5,535
$
2,261
Income from Securities Lending, net (Note 8)
1,899
2,834
4,820
2,812
Dividends, Net of Foreign Tax Withheld* (Note 1)
42,291
95,037
390,264
140,456
Total Income
45,807
104,108
400,619
145,529
EXPENSES
Investment Advisory Fees (Note 3)
40,968
143,406
189,881
69,177
Transfer Agent and Administrative Fees (Note 3)
12,050
42,178
55,847
20,346
Distribution & Service Fees (Note 3):
Advisor Class
4,714
12,586
22,484
10,607
A-Class
350
697
1,799
509
C-Class
10,276
14,882
31,154
13,730
Portfolio Accounting Fees (Note 3)
4,820
16,871
22,339
8,138
Trustees’ Fees**
552
1,577
1,765
1,030
Custody Fees
1,678
4,846
6,884
2,594
Miscellaneous
6,435
22,887
30,626
10,771
Total Expenses
81,843
259,930
362,779
136,902
Net Investment Income (Loss)
(36,036)
(155,822)
37,840
8,627
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities
750,205
1,077,755
(156,087)
727,171
Total Net Realized Gain (Loss)
750,205
1,077,755
(156,087)
727,171
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities
(1,175,325)
2,627,919
4,399,919
(1,212,482)
Net Change in Unrealized Appreciation (Depreciation)
(1,175,325)
2,627,919
4,399,919
(1,212,482)
Net Gain (Loss) on Investments
(425,120)
3,705,674
4,243,832
(485,311)
Net Increase (Decrease) in Net Assets from Operations
$(461,156)
$3,549,852
$ 4,281,672
$
(476,684)
**
Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
*
Foreign tax withheld of $0, $7,374, $15,192, $1,011, and $0, respectively.
46
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Period Ended September 30, 2007
Utilities
Fund
$
6,338
10,266
964,650
981,254
286,426
84,243
15,232
4,746
46,491
33,697
3,290
12,143
45,569
531,837
449,417
5,899,513
5,899,513
(6,245,965)
(6,245,965)
(346,452)
$
102,965
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
47
STATEMENTS OF CHANGES IN NET ASSETS
Basic
Banking Fund
Materials Fund
Ended
Ended
Ended
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
Ended
2007†
2007
2007†
2007
FROM OPERATIONS
Net Realized Gain (Loss) on Investments
(601,407)
(679,489)
1,302,901
64,815
Net Investment Income (Loss)
$
117,415
$
203,830
$
(1,299)
$
358,734
Net Change in Unrealized Appreciation (Depreciation) on Investments
(362,133)
449,337
16,561,280
6,612,993
Net Increase (Decrease) in Net Assets from Operations
(846,125)
(26,322)
17,862,882
7,036,542
Net Investment Income
Distributions to Shareholders from: (Note 1)
Investor Class
—
Advisor Class
—
(23,086)
—
(65,219)
(39,491)
—
(188,667)
A-Class
—
C-Class
—
(23,427)
—
(50,760)
(13,997)
—
(20,340)
Investor Class
—
—
—
—
Realized Gain on Investments
A-Class
—
—
—
—
Advisor Class
—
—
—
—
C-Class
—
—
—
—
Total Distributions to Shareholders
—
(100,001)
—
(324,986)
SHARE TRANSACTIONS
Investor Class
Proceeds from Shares Purchased
Advisor Class
11,194,620
77,862,326
145,431,775
219,631,355
290,432,023
A-Class
938,349
2,578,978
9,877,433
8,294,864
45,331,752
36,322,317
85,532,132
Value of Shares Purchased through Dividend Reinvestment
C-Class
10,599,362
12,891,046
21,862,710
17,284,854
Investor Class
—
38,043
—
175,738
A-Class
—
13,241
—
16,696
Advisor Class
—
22,967
—
58,183
Cost of Shares Redeemed
C-Class
—
23,169
—
44,842
Advisor Class
(12,418,891)
(44,875,679)
(40,466,162)
(78,080,719)
Investor Class
(73,497,215)
(145,053,915)
(202,444,641)
(250,095,588)
C-Class
(12,091,712)
(10,310,915)
(17,099,489)
(17,154,820)
A-Class
(233,937)
(2,550,667)
(5,971,079)
(7,240,169)
Net Increase (Decrease) in Net Assets From Share Transactions
2,352,902
3,539,795
21,712,444
49,268,036
NET ASSETS—BEGINNING OF PERIOD
14,432,933
11,019,461
93,929,365
37,949,773
Net Increase (Decrease) in Net Assets
1,506,777
3,413,472
39,575,326
55,979,592
NET ASSETS—END OF PERIOD
$ 15,939,710
$
14,432,933
$ 133,504,691
$
93,929,365
Undistributed Net Investment Income (Loss)—End of Period
$
251,551
$
134,136
$
219,684
$
220,983
†
Unaudited
48
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Biotechnology
Consumer
Electronics
Energy
Fund
Products Fund
Fund
Fund
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Period
Year
Period
Year
Period
Year
Period
Year
2007†
2007
2007†
2007
2007†
2007
2007†
2007
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
$
(322,388)
$
(1,325,001)
5,976,395
16,881,009
1,464,951
1,077,278
1,481,195
4,312,958
10,250,297
5,520,998
$
246,707
$
484,854
$
(58,272)
$
(309,108)
$
(273,319)
$
(317,765)
4,003,767
(27,145,068)
(1,209,568)
4,499,677
392,193
(9,019,658)
11,965,744
(3,139,628)
9,657,774
(11,589,060)
502,090
6,061,809
1,815,116
(5,015,808)
21,942,722
2,063,605
—
—
—
—
—
(36,775)
—
—
—
—
—
—
—
(8,034)
—
—
—
—
—
(10,629)
—
—
—
—
—
—
—
(14,354)
—
—
—
—
—
—
—
—
—
—
—
(1,775,102)
—
—
—
—
—
—
—
(64,865)
—
—
—
—
—
—
—
(273,731)
—
—
—
—
—
—
—
(392,557)
—
—
—
(69,792)
—
—
—
(2,506,255)
110,480,668
298,633,834
49,279,313
225,021,238
121,448,164
340,438,601
129,599,498
566,388,389
1,405,886
1,349,940
529,950
11,103,379
108,174
2,818,151
4,205,189
6,422,928
18,975,822
57,799,702
42,689,295
71,343,500
18,983,473
40,351,349
25,765,757
77,332,558
11,091,438
42,404,968
4,627,612
35,139,274
22,497,011
17,021,445
32,212,946
41,814,105
—
—
—
9,770
—
—
—
255,991
—
—
—
33,437
—
—
—
1,553,245
—
—
—
7,233
—
—
—
56,265
—
—
—
13,996
—
—
—
357,768
(18,519,209)
(76,803,719)
(40,063,030)
(73,071,695)
(19,431,562)
(52,013,777)
(23,575,362)
(80,647,802)
(89,474,174)
(332,635,990)
(59,683,875)
(218,819,161)
(102,306,720)
(355,989,880)
(155,004,680)
(582,442,837)
(477,271)
(5,191,820)
(10,058,574)
(47,016,746)
(6,712,589)
(31,751,262)
(20,944,420)
(18,513,768)
(26,819,520)
(47,943,797)
(2,420,748)
(9,163,152)
(52,232)
(3,754,021)
(1,748,488)
(6,392,017)
23,424,586
(61,459,831)
(11,754,072)
9,866,557
20,301,888
(29,641,900)
(15,364,660)
(23,245,204)
70,189,021
143,237,912
36,974,284
21,115,710
19,893,705
54,551,413
111,748,291
135,436,145
33,082,360
(73,048,891)
(11,251,982)
15,858,574
22,117,004
(34,657,708)
6,578,062
(23,687,854)
$103,271,381
$
70,189,021
$ 25,722,302
$
36,974,284
$
42,010,709
$
19,893,705
$ 118,326,353
$ 111,748,291
$
(322,388)
$
—
$
731,560
$
484,853
$
(58,272)
$
—
$
(273,319)
$
—
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
49
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Energy Services
Financial Services
Fund
Fund
Period
Year
Period
Ended
Ended
Ended
Ended
Year
2007†
2007
2007†
2007
September 30,
March 31,
September 30,
March 31,
FROM OPERATIONS
Net Realized Gain (Loss) on Investments
5,087,452
9,411,012
(108,279)
4,489,075
Net Investment Income (Loss)
$
(1,070,794)
$
(1,792,044)
$
187,247
$
374,307
Net Change in Unrealized Appreciation (Depreciation) on Investments
38,604,900
(15,376,557)
(1,605,186)
62,340
Net Increase (Decrease) in Net Assets from Operations
42,621,558
(7,757,589)
(1,526,218)
4,925,722
Net Investment Income
Distributions to Shareholders from: (Note 1)
Advisor Class
—
—
—
(87,578)
Investor Class
—
—
—
(133,645)
C-Class
—
—
—
(21,477)
A-Class
—
—
—
(7,325)
Total Distributions to Shareholders
—
—
—
(250,025)
SHARE TRANSACTIONS
Investor Class
348,888,452
583,063,812
104,168,657
200,298,665
Proceeds from Shares Purchased
A-Class
15,887,770
14,082,113
472,739
2,432,721
Advisor Class
43,593,265
85,211,838
7,890,844
59,596,661
Value of Shares Purchased through Dividend Reinvestment
C-Class
36,241,149
46,757,064
10,753,728
14,178,688
Advisor Class
—
—
—
82,283
Investor Class
—
—
—
126,621
C-Class
—
—
—
20,762
A-Class
—
—
—
7,241
Investor Class
(311,218,288)
(632,910,368)
(107,371,112)
(192,566,624)
Cost of Shares Redeemed
A-Class
(9,897,970)
(14,353,682)
(945,301)
(5,701,525)
Advisor Class
(39,856,767)
(110,032,063)
(21,493,315)
(51,419,804)
C-Class
(32,187,275)
(49,660,802)
(12,835,904)
(11,202,475)
Net Increase (Decrease) in Net Assets From Share Transactions
51,450,336
(77,842,088)
(19,359,664)
15,853,214
NET ASSETS—BEGINNING OF PERIOD
139,983,360
225,583,037
45,932,314
25,403,403
Net Increase (Decrease) in Net Assets
94,071,894
(85,599,677)
(20,885,882)
20,528,911
NET ASSET—END OF PERIOD
$ 234,055,254
$ 139,983,360
$
25,046,432
$
45,932,314
Undistributed Net Investment Income (Loss)—End of Period
$
(1,070,794)
$
—
$
417,840
$
230,593
†
Unaudited
50
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Health Care
Fund
Internet
Fund
Leisure
Precious
Fund
Metals Fund
Period
Year
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Period
Year
Period
Year
Period
Year
2007†
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
2007
2007†
2007
2007†
2007
2007†
2007
3,012,858
4,589,179
135,831
3,010,821
$
(152,919)
$
(33,347)
$
(78,502)
$
(238,634)
$
(14,819)
$
(56,511)
$
(649,730)
$
(395,264)
387,353
(1,174,397)
1,929,097
(699,738)
(1,666,996)
1,890,026
12,366,420
(26,627,136)
2,247,533
2,577,289
15,950,698
22,887,502
3,247,292
3,381,435
1,986,426
2,072,449
565,718
4,410,804
27,667,388
(4,134,898)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
105,174,636
338,129,929
67,611,033
184,049,021
37,264,729
205,098,898
465,752,068
1,292,713,059
419,610
3,869,044
78,103
358,903
63,725
2,312,277
3,991,014
11,738,440
20,228,830
85,800,025
17,357,848
41,231,474
15,349,504
83,005,437
23,992,986
81,273,457
13,201,954
22,894,380
7,182,324
6,733,026
3,448,068
8,482,420
54,484,838
78,749,533
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(110,412,157)
(352,464,994)
(25,351,131)
(84,525,554)
(15,153,747)
(44,376,046)
(17,996,394)
(84,909,062)
(25,931,468)
(85,751,697)
(52,963,808)
(196,573,761)
(42,606,943)
(215,196,707)
(493,847,636)
(1,353,535,756)
(15,746,300)
(21,468,105)
(6,808,489)
(8,043,131)
(4,723,222)
(6,540,997)
(56,242,322)
(79,437,350)
(362,196)
(5,234,504)
(54,838)
(664,110)
(2,095,957)
(196,254)
(3,565,974)
(12,159,458)
(12,846,754)
(12,999,779)
17,248,426
(17,284,624)
(11,296,490)
(7,943,988)
(31,366,494)
(66,409,772)
(9,599,462)
(9,618,344)
19,234,852
(15,212,175)
(10,730,772)
(3,533,184)
(3,699,106)
60,742,881
70,361,225
7,515,722
(70,544,670)
22,727,897
19,322,227
22,855,411
186,526,260
257,070,930
$
51,143,419
$
60,742,881
$ 26,750,574
$
7,515,722
$
8,591,455
$
19,322,227
$ 182,827,154
$
186,526,260
$
(152,919)
$
��
$
(78,502)
$
—
$
(14,819)
$
—
$
(649,730)
$
—
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
51
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
Retailing
Technology
Fund
Fund
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
Ended
Ended
Ended
Ended
2007†
2007
2007†
2007
FROM OPERATIONS
Net Investment Income (Loss)
Net Realized Gain (Loss) on Investments
750,205
1,272,524
1,077,755
8,014,070
$
(36,036)
$
(103,472)
$
(155,822)
$
(437,105)
Net Change in Unrealized Appreciation (Depreciation) on Investments
(1,175,325)
645,320
2,627,919
(5,308,904)
Net Increase (Decrease) in Net Assets from Operations
(461,156)
1,814,372
3,549,852
2,268,061
Distributions to Shareholders from: (Note 1)
Net Investment Income
Advisor Class
—
—
—
—
Investor Class
—
—
—
—
C-Class
—
A-Class
—
—
—
—
—
—
—
Total Distributions to Shareholders
—
—
—
—
SHARE TRANSACTIONS
Investor Class
58,880,037
181,069,656
84,664,766
208,816,826
Proceeds from Shares Purchased
A-Class
40,419
407,699
1,371,855
2,597,229
Advisor Class
7,114,212
41,456,000
14,709,919
61,658,355
Value of Shares Purchased through Dividend Reinvestment
C-Class
2,096,864
6,576,299
13,922,737
9,748,827
Advisor Class
—
—
—
—
Investor Class
—
—
—
—
C-Class
—
—
—
—
A-Class
—
—
—
—
Cost of Shares Redeemed
Advisor Class
(8,565,353)
Investor Class
(57,858,557)
(185,695,994)
(70,857,348)
(217,292,098)
A-Class
(291,481)
(92,160)
(679,710)
(2,960,124)
(42,561,540)
(14,173,820)
(70,308,500)
C-Class
(2,263,345)
(5,741,303)
(10,339,331)
(10,983,175)
Net Increase (Decrease) in Net Assets From Share Transactions
(847,204)
(4,581,343)
18,619,068
(18,722,660)
Net Increase (Decrease) in Net Assets
(1,308,360)
(2,766,971)
22,168,920
(16,454,599)
NET ASSETS—BEGINNING OF PERIOD
9,858,854
12,625,825
20,896,588
37,351,187
NET ASSETS—END OF PERIOD
$
8,550,494
$
9,858,854
$ 43,065,508
$
20,896,588
Undistributed Net Investment Income (Loss)—End of Period
$
(36,036)
$
—
$
(155,822)
$
—
†
Unaudited
52
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Telecommunications
Transportation
Utilities
Fund
Fund
Fund
Period
Year
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
Ended
Ended
Ended
Ended
Ended
Ended
2007†
2007
2007†
2007
2007†
2007
(156,087)
651,345
727,171
$
37,840
$
180,524
$
8,627
$
(269,254)
$
449,417
$
881,885
4,399,919
553,132
(1,212,482)
(8,330,687)
(6,245,965)
10,822,982
3,249,723
5,899,513
1,946,594
4,281,672
1,385,001
(476,684)
(5,350,218)
102,965
13,651,461
—
(112,434)
—
—
—
(489,075)
—
(2,018)
—
—
—
(70,320)
—
(19,030)
—
—
—
(124,490)
—
(16,513)
—
—
—
(116,140)
—
(149,995)
—
—
—
(800,025)
147,805,218
159,616,113
103,820,686
326,429,128
155,848,180
481,838,993
2,435,760
2,388,635
132,588
2,806,594
2,008,863
12,183,998
24,403,211
38,166,416
11,191,161
54,418,386
17,556,623
97,485,404
18,082,549
10,047,228
12,436,532
21,880,191
20,552,844
26,100,667
—
—
111,107
—
—
—
468,089
—
1,098
—
—
—
61,889
18,721
—
—
—
110,932
—
16,084
—
—
—
100,307
(139,882,142)
(27,646,444)
(40,264,984)
(11,078,744)
(58,352,116)
(26,540,288)
(89,096,307)
(200,798,680)
(105,380,273)
(364,494,499)
(218,701,512)
(418,029,281)
(2,172,939)
(16,035,849)
(8,314,900)
(14,287,584)
(22,133,547)
(26,308,544)
(22,414,820)
(4,254,031)
(305,948)
(5,121,936)
(3,805,233)
(8,928,077)
6,989,364
(43,267,193)
(3,471,582)
(44,567,799)
(79,389,067)
79,881,794
11,271,036
(42,032,187)
(3,948,266)
(49,918,017)
(79,286,102)
92,733,230
30,171,396
72,203,583
15,568,441
65,486,458
111,848,678
19,115,448
$
41,442,432
$
30,171,396
$
11,620,175
$
15,568,441
$
32,562,576
$ 111,848,678
$
68,369
$
30,529
$
8,627
$
—
$
797,055
$
347,638
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
53
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
NET ASSET
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net Assets,
Net Realized
Net Increase
BEGINNING
Investment
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Investment
Turnover
Period (000’s
VALUE,
Net
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Net
Portfolio
End of
Period Ended
OF PERIOD
Income†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
Income
Rate
omitted)
Banking Fund Investor Class
September 30, 2007D
March 31, 2007
10.86
.20
.05
.25
(.08)
—
(.08)
.17
11.03
2.24%
1.32%
1.79%
954%
9,229
$11.03
$ .12
$ (.96)
$ (.84)
$ —
$ —
$ —
$ (.84)
$10.19
(7.62)%
1.38%**
2.22%**
561%
$ 12,857
March 31, 2005
10.25
.13
.05
.18
(.26)
—
(.26)
(.08)
10.17
1.61%
1.34%
1.26%
1,692%
4,899
March 31, 2006
10.17
.16
.69
.85
(.16)
—
(.16)
.69
10.86
8.41%
1.34%
1.48%
1,834%
8,713
March 31, 2004
7.30
.14
2.89
3.03
(.08)
—
(.08)
2.95
10.25
41.53%
1.36%
1.51%
1,435%
12,504
March 31, 2003
8.63
.12
(1.24)
(1.12)
(.21)
—
(.21)
(1.33)
7.30
(13.15)%
1.38%
1.52%
1,495%
7,352
September 30, 2007D
10.39
.08
(.89)
(.81)
—
—
—
(.81)
9.58
(7.80)%
1.85%**
1.63%**
561%
585
Banking Fund Advisor Class
March 31, 2006
9.72
.12
.62
.74
(.16)
—
(.16)
.58
10.30
7.66%
1.84%
1.20%
1,834%
1,537
March 31, 2007
10.30
.11
.06
.17
(.08)
—
(.08)
.09
10.39
1.58%
1.88%
1.08%
954%
1,836
March 31, 2004
7.06
.09
2.78
2.87
(.08)
—
(.08)
2.79
9.85
40.67%
1.86%
1.04%
1,435%
3,712
March 31, 2005
9.85
.06
.07
.13
(.26)
—
(.26)
(.13)
9.72
1.17%
1.86%
0.60%
1,692%
2,955
March 31, 2003
8.41
.07
(1.21)
(1.14)
(.21)
—
(.21)
(1.35)
7.06
(13.73)%
1.89%
0.91%
1,495%
390
September 30, 2007D
Banking Fund A-Class
March 31, 2007
10.34
.17
.04
.21
(.08)
—
(.08)
.13
10.47
1.96%
1.62%
1.54%
954%
187
10.47
.09
(.89)
(.80)
—
—
—
(.80)
9.67
(7.64)%
1.55%**
1.78%**
561%
881
March 31, 2006
9.72
.14
.64
.78
(.16)
—
(.16)
.62
10.34
8.07%
1.62%
1.40%
1,834%
97
March 31, 2005*
10.06
.06
(.14)
(.08)
(.26)
—
(.26)
(.34)
9.72
(0.95)%
1.57%**
1.03%**
1,692%
15
Banking Fund C-Class
September 30, 2007D
10.27
.06
(.88)
(.82)
—
—
—
(.82)
9.45
(7.98)%
2.37%**
1.16%**
561%
1,617
March 31, 2006
9.66
.06
.64
.70
(.16)
—
(.16)
.54
10.20
7.29%
2.35%
0.59%
1,834%
673
March 31, 2007
10.20
.07
.08
.15
(.08)
—
(.08)
.07
10.27
1.40%
2.37%
0.63%
954%
3,180
March 31, 2004
7.12
.04
2.79
2.83
(.08)
—
(.08)
2.75
9.87
39.76%
2.37%
0.41%
1,435%
1,829
March 31, 2005
9.87
.04
.01
.05
(.26)
—
(.26)
(.21)
9.66
0.35%
2.34%
0.43%
1,692%
867
March 31, 2003
8.54
.02
(1.23)
(1.21)
(.21)
—
(.21)
(1.42)
7.12
(14.35)%
2.38%
0.23%
1,495%
76
Basic Materials Fund Investor Class
March 31, 2007
35.23
.41
6.91
7.32
(.30)
—
(.30)
7.02
42.25
20.86%
1.36%
1.09%
442%
68,862
September 30, 2007D
42.25
.03
7.75
7.78
—
—
—
7.78 50.03
-->7.78
50.03
18.41%
1.37%**
0.15%**
121%
99,597
March 31, 2005
25.46
March 31, 2006
.14
5.06
5.20
—
—
—
5.20
30.66
20.42%
1.33%
0.51%
891%
34,039
30.66
.32
4.44
4.76
(.19)
—
(.19)
4.57
35.23
15.60%
1.35%
1.04%
826%
23,630
March 31, 2004
17.22
.05
8.32
March 31, 2003††
24.30
.12
(7.17)
(7.05)
(.03)
—
(.03)
(7.08)
17.22
(29.02)%
1.39%
0.53%
1,943%
3,360
8.37
(.13)
—
(.13)
8.24
25.46
48.70%
1.38%
0.20%
1,669%
29,749
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Increase
VALUE,
Investment
Unrealized
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
Basic Materials Fund Advisor Class
March 31, 2007
34.03
September 30, 2007D
$40.61
$
(.10)
$
7.45
$
7.35
$
—
$
—
$
—
$
7.35
$47.96
18.10%
1.86%**
(0.46)%**
121%
$ 13,709
March 31, 2006
29.78
.16
4.28
4.44
(.19)
—
(.19)
4.25
34.03
14.98%
1.85%
0.55%
826%
7,619
.26
6.62
6.88
(.30)
—
(.30)
6.58
40.61
20.30%
1.87%
0.72%
442%
15,974
March 31, 2004
16.89
.02
8.07
8.09
(.13)
—
(.13)
7.96
24.85
47.99%
1.87%
0.09%
1,669%
13,483
March 31, 2005
24.85
.01
4.92
4.93
—
—
—
4.93
29.78
19.84%
1.82%
0.03%
891%
12,987
March 31, 2003††
23.91
(.06)
(6.93)
(6.99)
(.03)
—
(.03)
(7.02)
16.89
(29.24)%
1.89%
(0.23)%
1,943%
2,419
Basic Materials Fund A-Class
March 31, 2007
34.19
.33
6.70
7.03
(.30)
—
(.30)
6.73
40.92
20.65%
1.62%
0.92%
442%
2,076
September 30, 2007D
40.92
(.02)
7.49
7.47
—
—
—
7.47
48.39
18.25%
1.62%**
(0.11)%**
121%
7,024
March 31, 2005*
25.80
.07
3.97
4.04
—
—
—
4.04
29.84
15.66%
1.55%**
0.44%**
891%
210
March 31, 2006
29.84
.29
4.25
4.54
(.19)
—
(.19)
4.35
34.19
15.29%
1.63%
0.97%
826%
659
Basic Materials Fund C-Class
March 31, 2007
33.48
.04
6.54
6.58
(.30)
—
(.30)
6.28
39.76
19.74%
2.37%
0.11%
442%
7,017
September 30, 2007D
39.76
(.17)
7.25
7.08
—
—
—
7.08
46.84
17.81%
2.37%**
(0.81)%**
121%
13,174
March 31, 2005
24.68
(.12)
4.88
4.76
—
—
—
4.76
29.44
19.29%
2.32%
(0.43)%
891%
7,421
March 31, 2006
29.44
.03
4.20
4.23
(.19)
—
(.19)
4.04
33.48
14.44%
2.36%
0.11%
826%
6,041
March 31, 2003††
24.03
(.06)
(7.08)
(7.14)
(.03)
—
(.03)
(7.17)
16.86
(29.72)%
2.39%
(0.23)%
1,943%
294
March 31, 2004
16.86
(.14)
8.09
7.95
(.13)
—
(.13)
7.82
24.68
47.25%
2.38%
(0.62)%
1,669%
5,311
Biotechnology Fund Investor Class
September 30, 2007D
March 31, 2007
23.45
(.27)
(1.97)
(2.24)
—
—
—
(2.24)
21.21
(9.55)%
1.37%
(1.23)%
269%
61,366
21.21
(.09)
2.81
2.72
—
—
—
2.72
23.93
12.82%
1.41%**
(0.77)%**
86%
90,904
March 31, 2005
20.56
(.24)
(2.73)
March 31, 2006
17.59
(2.97)
—
—
—
(2.97)
17.59
(14.45)%
1.33%
(1.25)%
585%
74,890
(.26)
6.12
5.86
—
—
—
5.86
23.45
33.31%
1.34%
(1.25)%
338%
104,126
March 31, 2003
20.86
(.19)
(6.92)
(7.11)
—
—
—
(7.11)
13.75
(34.08)%
1.38%
(1.31)%
477%
111,003
March 31, 2004
13.75
(.24)
7.05
6.81
—
—
—
6.81
20.56
49.53%
1.35%
(1.31)%
548%
135,619
Biotechnology Fund Advisor Class
March 31, 2007
22.44
(.37)
(1.87)
September 30, 2007D
20.20
(.13)
2.67
2.54
—
—
—
2.54
22.74
12.57%
1.91%**
(1.24)%**
86%
6,397
March 31, 2006
16.91
(.36)
5.89
5.53
—
—
—
5.53
22.44
32.70%
1.86%
(1.76)%
338%
26,240
(2.24)
—
—
—
(2.24)
20.20
(9.98)%
1.87%
(1.75)%
269%
5,295
March 31, 2004
13.35
(.32)
6.83
6.51
March 31, 2005
19.86
(.32)
(2.63)
—
—
—
6.51
19.86
48.76%
1.84%
(1.79)%
548%
12,708
(2.95)
—
—
—
(2.95)
16.91
(14.85)%
1.83%
(1.75)%
585%
10,231
March 31, 2003
20.36
(.25)
(6.76)
(7.01)
—
—
—
(7.01)
13.35
(34.43)%
1.88%
(1.82)%
477%
24,280
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Increase
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
Biotechnology Fund A-Class
September 30, 2007D
March 31, 2007
22.50
(.31)
(1.89)
(2.20)
—
—
—
(2.20)
20.30
(9.78)%
1.62%
(1.50)%
269%
849
$20.30
$
(.11)
$
2.69
$
2.58
$
—
$
—
$
—
$2.58
$
22.88
12.71%
1.65%**
(1.07)%**
86%
$ 1,950
March 31, 2005*
17.89
(.16)
(.80)
(.96)
—
—
—
(.96)
16.93
(5.37)%
1.53%**
(1.47)%**
585%
74
March 31, 2006
16.93
(.33)
5.90
5.57
—
—
—
5.57
22.50
32.90%
1.63%
(1.52)%
338%
5,087
Biotechnology Fund C-Class
September 30, 2007D
19.95
(.19)
2.63
2.44
—
—
—
2.44
22.39
12.23%
2.40%**
(1.77)%**
86%
4,020
March 31, 2006
16.87
(.47)
5.87
5.40
—
—
—
5.40
22.27
32.01%
2.36%
(2.27)%
338%
7,786
March 31, 2007
22.27
(.46)
(1.86)
(2.32)
—
—
—
(2.32)
19.95
(10.42)%
2.36%
(2.23)%
269%
2,678
March 31, 2004
13.47
(.43)
6.88
6.45
—
—
—
6.45
19.92
47.88%
2.36%
(2.32)%
548%
3,567
March 31, 2005
19.92
(.42)
(2.63)
(3.05)
—
—
—
(3.05)
16.87
(15.31)%
2.33%
(2.23)%
585%
2,625
March 31, 2003
20.66
(.33)
(6.86)
(7.19)
—
—
—
(7.19)
13.47
(34.80)%
2.38%
(2.30)%
477%
1,667
September 30, 2007D
36.11
Consumer Products Fund Investor Class
.38
1.51
1.89
—
—
—
1.89
38.00
5.23%
1.36%**
2.07%**
195%
12,115
March 31, 2006
30.50
.30
.65
.95
(.42)
—
(.42)
.53
31.03
3.13%
1.32%
0.98%
813%
11,815
March 31, 2007
31.03
.43
4.71
5.14
(.06)
—
(.06)
5.08
36.11
16.58%
1.37%
1.29%
455%
21,814
March 31, 2004
20.85
.14
7.74
7.88
(.05)
—
(.05)
7.83
28.68
37.84%
1.36%
0.56%
914%
23,560
March 31, 2005
28.68
.18
1.65
1.83
(.01)
—
(.01)
1.82
30.50
6.40%
1.33%
0.60%
907%
15,470
March 31, 2003††
25.08
.12
(4.23)
(4.11)
(.12)
—
(.12)
(4.23)
20.85
(16.38)%
1.39%
0.53%
1,205%
1,640
September 30, 2007D
34.68
.08
1.64
1.72
—
—
—
1.72
36.40
4.96%
1.87%**
0.45%**
195%
7,801
Consumer Products Fund Advisor Class
March 31, 2006
29.66
.03
.69
.72
(.42)
—
(.42)
.30
29.96
2.44%
1.82%
0.08%
813%
6,487
March 31, 2007
29.96
.20
4.58
4.78
(.06)
—
(.06)
4.72
34.68
15.97%
1.86%
0.64%
455%
5,754
March 31, 2004
20.46
(.04)
7.62
7.58
(.05)
—
(.05)
7.53
27.99
37.10%
1.86%
(0.18)%
914%
13,357
March 31, 2005
27.99
.05
1.63
1.68
(.01)
—
(.01)
1.67
29.66
6.02%
1.82%
0.19%
907%
26,851
March 31, 2003††
24.69
(.03)
(4.08)
(4.11)
(.12)
—
(.12)
(4.23)
20.46
(16.64)%
1.89%
(0.09)%
1,205%
3,120
September 30, 2007D
34.90
.37
1.40
1.77
—
—
—
1.77
36.67
5.07%
1.61%**
2.04%**
195%
2,197
Consumer Products Fund A-Class
March 31, 2006
29.69
.18
.62
.80
(.42)
—
(.42)
.38
30.07
2.71%
1.60%
0.62%
813%
1,475
March 31, 2007
30.07
.42
4.47
4.89
(.06)
—
(.06)
4.83
34.90
16.27%
1.61%
1.30%
455%
3,935
March 31, 2005*
27.42
.06
2.22
2.28
(.01)
—
(.01)
2.27
29.69
8.33%
1.56%**
0.42%**
907%
463
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
Net Increase
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
Consumer Products Fund C-Class
March 31, 2007
September 30, 2007D
$34.04
$
.18
$
1.42
$
1.60
$
—
$
—
$
—
$
1.60
$35.64
4.70%
2.35%**
1.05%**
195%
$
3,610
March 31, 2006
29.53
(.03)
.47
.44
(.42)
—
(.42)
.02
29.55
1.50%
2.33%
(0.11)%
813%
1,340
29.55
.20
4.35
4.55
(.06)
—
(.06)
4.49
34.04
15.41%
2.36%
0.62%
455%
5,472
March 31, 2004
March 31, 2005
20.52
(.20)
7.65
7.45
(.05)
—
(.05)
7.40
27.92
36.36%
2.37%
(0.79)%
914%
4,259
27.92
(.13)
1.75
1.62
(.01)
—
(.01)
1.61
29.53
5.82%
2.31%
(0.44)%
907%
8,048
March 31, 2003††
24.93
(.09)
(4.20)
(4.29)
(.12)
—
(.12)
(4.41)
20.52
(17.20)%
2.39%
(0.35)%
1,205%
196
Electronics Fund Investor Class
September 30, 2007D
12.46
(.02)
1.28
1.26
March 31, 2007
13.52
(.10)
(.96)
(1.06)
—
—
—
(1.06)
12.46
(7.84)%
1.37%
(0.76)%
759%
15,376
—
—
—
1.26
13.72
10.11%
1.37%**
(0.36)%**
325%
35,815
March 31, 2006
10.31
(.11)
March 31, 2005
13.43
(.08)
(3.04)
(3.12)
—
—
—
(3.12)
10.31
(23.23)%
1.33%
(0.76)%
1,106%
27,150
3.32
3.21
—
—
—
3.21
13.52
31.13%
1.34%
(0.91)%
911%
34,194
March 31, 2003
16.96
(.12)
(8.76)
(8.88)
—
—
—
(8.88)
8.08
(52.36)%
1.39%
(1.20)%
2,413%
31,655
March 31, 2004
8.08
(.15)
5.50
5.35
—
—
—
5.35
13.43
66.21%
1.36%
(1.20)%
1,359%
46,200
September 30, 2007D
11.88
(.05)
1.22
1.17
—
—
—
1.17
13.05
9.85%
1.86%**
(0.75)%**
325%
1,143
Electronics Fund Advisor Class
March 31, 2006
9.95
(.16)
3.19
3.03
—
—
—
3.03
12.98
30.45%
1.84%
(1.39)%
911%
14,089
March 31, 2007
12.98
(.15)
(.95)
(1.10)
—
—
—
(1.10)
11.88
(8.47)%
1.87%
(1.20)%
759%
1,511
March 31, 2005
March 31, 2004
7.87
(.21)
5.36
5.15
—
—
—
5.15
13.02
65.44%
1.85%
(1.70)%
1,359%
3,341
13.02
(.14)
(2.93)
(3.07)
—
—
—
(3.07)
9.95
(23.58)%
1.83%
(1.32)%
1,106%
12,613
March 31, 2003
16.62
(.16)
(8.59)
(8.75)
—
—
—
(8.75)
7.87
(52.65)%
1.87%
(1.72)%
2,413%
7,389
Electronics Fund A-Class
March 31, 2007
13.03
(.11)
(.93)
(1.04)
—
—
—
(1.04)
11.99
(7.98)%
1.63%
(0.94)%
759%
130
September 30, 2007D
11.99
(.04)
1.23
1.19
—
—
—
1.19
13.18
9.92%
1.62%**
(0.56)%**
325%
200
March 31, 2005*
9.22
(.07)
.81
.74
—
—
—
.74
9.96
8.03%
1.59%**
(1.21)%**
1,106%
1
March 31, 2006
9.96
(.14)
3.21
3.07
—
—
—
3.07
13.03
30.82%
1.64%
(1.18)%
911%
1,253
Electronics Fund C-Class
March 31, 2007
12.86
(.20)
(.93)
September 30, 2007D
11.73
(.07)
1.20
1.13
—
—
—
1.13
12.86
9.63%
2.39%**
(1.07)%**
325%
4,853
March 31, 2006
9.90
(.21)
3.17
2.96
—
—
—
2.96
12.86
29.90%
2.36%
(1.91)%
911%
5,015
(1.13)
—
—
—
(1.13)
11.73
(8.79)%
2.36%
(1.72)%
759%
2,876
March 31, 2004
7.91
(.27)
5.36
5.09
March 31, 2005
13.00
(.20)
(2.90)
—
—
—
5.09
13.00
64.35%
2.36%
(2.20)%
1,359%
1,111
(3.10)
—
—
—
(3.10)
9.90
(23.85)%
2.33%
(1.86)%
1,106%
2,119
March 31, 2003
16.82
(.22)
(8.69)
(8.91)
—
—
—
(8.91)
7.91
(52.97)%
2.39%
(2.21)%
2,413%
940
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Realized
Net Increase
VALUE,
Investment
Unrealized
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
Expenses
(Loss)
Rate
omitted)
Energy Fund Investor Class
March 31, 2007
21.68
September 30, 2007D
$23.19
(—)§
1.92
1.92
—
(.41)
(.41)
1.51
23.19
8.87%
1.36%
1.36%
(0.01)%
283%
75,204
$ (.02)
$ 4.68
$ 4.66
$ —
$ —
$ —
$ 4.66
$27.85
20.09%
1.37%**
1.37%**
(0.17)%**
86%
$ 63,607
March 31, 2005
11.94
.05
5.14
5.19
(.01)
—
(.01)
5.18
17.12
43.43%
1.33%
1.33%
0.40%
546%
111,762
March 31, 2006
17.12
.02
5.02
5.04
(.03)
(.45)
(.48)
4.56
21.68
29.60%
1.34%
1.34%
0.08%
415%
90,331
March 31, 2004
March 31, 2003
11.26
.02
(2.47)
(2.45)
(.01)
—
(.01)
(2.46)
8.80
(21.79)%
1.39%
1.39%
0.24%
1,362%
4,703
8.80
—§
3.17
3.17
(.03)
—
(.03)
3.14
11.94
36.12%
1.36%
1.36%
0.04%
913%
61,800
Energy Fund Advisor Class
March 31, 2007
20.96
(.12)
1.86
1.74
—
(.41)
(.41)
1.33
22.29
8.31%
1.86%
1.86%
(0.54)%
283%
14,613
September 30, 2007D
22.29
(.08)
4.49
4.41
—
—
—
4.41 26.70
-->4.41
26.70
19.78%
1.87%**
1.87%**
(0.65)%**
86%
19,817
March 31, 2005
11.68
(.02)
5.00
4.98
(.01)
—
(.01)
4.97
16.65
42.60%
1.82%
1.82%
(0.11)%
546%
25,000
March 31, 2006
16.65
(.07)
4.86
4.79
(.03)
(.45)
(.48)
4.31
20.96
28.93%
1.85%
1.84%
(0.38)%
415%
18,162
March 31, 2004
March 31, 2003
11.09
—§
(2.45)
(2.45)
(.01)
—
(.01)
(2.46)
8.63
(22.13)%
1.88%
1.88%
(0.03)%
1,362%
7,039
8.63
(.03)
3.11
3.08
(.03)
—
(.03)
3.05
11.68
35.79%
1.92%
1.92%
(0.25)%
913%
4,895
Energy Fund A-Class
March 31, 2007
21.04
(.06)
1.87
1.81
—
September 30, 2007D
(.41)
(.41)
1.40
22.44
8.62%
1.61%
1.61%
(0.29)%
283%
3,307
22.44
(.05)
4.52
4.47
—
—
—
4.47 26.91
-->4.47
26.91
19.92%
1.62%**
1.62%**
(0.40)%**
86%
6,748
March 31, 2005*
12.79
.02
3.88
3.90
(.01)
—
(.01)
3.89
16.68
30.46%
1.45%**
1.45%**
0.19%**
546%
744
March 31, 2006
16.68
(.05)
4.89
4.84
(.03)
(.45)
(.48)
4.36
21.04
29.18%
1.61%
1.60%
(0.25)%
415%
3,210
Energy Fund C-Class
March 31, 2007
20.62
(.21)
1.81
1.60
—
(.41)
(.41)
1.19
21.81
7.77%
2.36%
2.36%
(1.00)%
283%
18,624
September 30, 2007D
21.81
(.14)
4.40
4.26
—
—
—
4.26 26.07
-->4.26
26.07
19.53%
2.36%**
2.36%**
(1.16)%**
86%
28,155
March 31, 2005
11.60
(.08)
4.96
4.88
(.01)
—
(.01)
4.87
16.47
42.03%
2.33%
2.33%
(0.61)%
546%
17,993
March 31, 2006
16.47
(.16)
4.79
4.63
(.03)
(.45)
(.48)
4.15
20.62
28.27%
2.35%
2.35%
(0.88)%
415%
23,734
March 31, 2003
11.14
(.07)
(2.43)
(2.50)
(.01)
—
(.01)
(2.51)
8.63
(22.48)%
2.38%
2.38%
(0.81)%
1,362%
1,471
March 31, 2004
8.63
(.12)
3.12
3.00
(.03)
—
(.03)
2.97
11.60
34.86%
2.36%
2.36%
(1.08)%
913%
6,571
Energy Services Fund Investor Class
March 31, 2007
45.05
(.36)
2.78
2.42
—
—
—
2.42
47.47
5.37%
1.36%
1.36%
(0.80)%
196%
91,095
September 30, 2007D
47.47
(.22)
13.19
12.97
—
—
—
12.97 60.44
-->12.97
60.44
27.32%
1.37%**
1.37%**
(0.81)%**
103%
156,012
March 31, 2005
21.74
(.22)
8.60
8.38
—
—
—
8.38
30.12
38.55%
1.31%
1.31%
(0.85)%
501%
99,603
March 31, 2006
30.12
(.30)
15.23
14.93
—
—
—
14.93
45.05
49.57%
1.35%
1.35%
(0.81)%
324%
147,439
March 31, 2003††
22.47
(.15)
(4.95)
(5.10)
—
—
—
(5.10)
17.37
(22.70)%
1.39%
1.39%
(0.72)%
971%
15,144
March 31, 2004
17.37
(.18)
4.55
4.37
—
—
—
4.37
21.74
25.16%
1.37%
1.37%
(0.96)%
1,009%
47,344
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
RATIOS TO
Net Realized
Net Increase
AVERAGE NET ASSETS:
VALUE,
Investment
NET ASSET
Net
Unrealized
in Net Asset
from Net
from Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
Expenses
(Loss)
Rate
omitted)
September 30, 2007D
$45.58
$
(.35)
$
12.67
$
12.32
$
—
$
—
$
—
$
12.32
$57.90
27.03%
1.87%**
1.87%**
(1.32)%**
103%
$
27,389
Energy Services Fund Advisor Class
March 31, 2006
29.21
(.47)
14.72
14.25
—
—
—
14.25
43.46
48.78%
1.85%
1.85%
(1.33)%
324%
44,033
March 31, 2007
43.46
(.58)
2.70
2.12
—
—
—
2.12
45.58
4.88%
1.86%
1.86%
(1.35)%
196%
18,237
March 31, 2004
17.01
(.27)
4.44
4.17
—
—
—
4.17
21.18
24.51%
1.87%
1.87%
(1.39)%
1,009%
25,302
March 31, 2005
21.18
(.33)
8.36
8.03
—
—
—
8.03
29.21
37.91%
1.82%
1.82%
(1.37)%
501%
24,647
March 31, 2003††
22.08
(.24)
(4.83)
(5.07)
—
—
—
(5.07)
17.01
(22.96)%
1.88%
1.88%
(1.26)%
971%
1,961
September 30, 2007D
45.90
(.28)
12.76
12.48
—
—
—
12.48 58.38
-->12.48
58.38
27.19%
1.62%**
1.62%**
(1.08)%**
103%
14,737
Energy Services Fund A-Class
March 31, 2007
43.67
(.41)
2.64
2.23
—
—
March 31, 2006
29.25
(.39)
14.81
14.42
—
—
—
14.42
43.67
49.30%
1.63%
1.63%
(1.00)%
324%
6,569
—
2.23
45.90
5.11%
1.61%
1.61%
(0.97)%
196%
6,151
March 31, 2005*
23.18
(.18)
6.25
6.07
—
—
—
6.07
29.25
26.19%
1.53%**
1.53%**
(1.13)%**
501%
313
Energy Services Fund C-Class
March 31, 2007
42.92
(.74)
2.61
1.87
—
—
—
1.87
44.79
4.36%
2.36%
2.36%
(1.77)%
196%
24,500
September 30, 2007D
44.79
(.47)
12.43
11.96
—
—
—
11.96 56.75
-->11.96
56.75
26.70%
2.37%**
2.37%**
(1.82)%**
103%
35,918
March 31, 2005
21.12
(.45)
8.31
7.86
—
—
—
7.86
28.98
37.22%
2.31%
2.31%
(1.84)%
501%
11,529
March 31, 2006
28.98
(.65)
14.59
13.94
—
—
—
13.94
42.92
48.10%
2.36%
2.36%
(1.82)%
324%
27,542
March 31, 2003††
22.23
(.30)
(4.89)
(5.19)
—
—
—
(5.19)
17.04
(23.35)%
2.39%
2.39%
(1.60)%
971%
651
March 31, 2004
17.04
(.35)
4.43
4.08
—
—
—
4.08
21.12
23.94%
2.37%
2.37%
(1.86)%
1,009%
2,833
Financial Services Fund Investor Class
March 31, 2007
13.26
September 30, 2007D
.14
.91
1.05
(.06)
—
(.06)
.99
14.25
7.94%
1.34%
1.34%
1.03%
534%
22,658
14.25
.09
(.88)
(.79)
—
—
—
(.79)
13.46
(5.54)%
1.37%**
1.37%**
1.28%**
408%
18,549
March 31, 2005
11.09
.10
.29
.39
(.08)
—
(.08)
.31
11.40
3.46%
1.33%
1.33%
0.91%
1,005%
7,741
March 31, 2006
11.40
.17
1.81
1.98
(.12)
—
(.12)
1.86
13.26
17.42%
1.36%
1.34%
1.32%
821%
12,226
March 31, 2004
7.66
.09
3.38
3.47
March 31, 2003
10.23
.07
(2.62)
(2.55)
(.02)
—
(.02)
(2.57)
7.66
(24.97)%
1.38%
1.38%
0.82%
2,336%
6,671
(.04)
—
(.04)
3.43
11.09
45.36%
1.36%
1.36%
0.94%
1,200%
34,423
Financial Services Fund Advisor Class
March 31, 2007
12.88
.07
.87
.94
(.06)
—
(.06)
.88
13.76
7.32%
1.84%
1.84%
0.54%
534%
September 30, 2007D
13.76
.05
(.84)
(.79)
—
—
—
(.79)
12.97
(5.74)%
1.86%**
1.86%**
0.77%**
408%
3,025
March 31, 2006
11.13
.10
1.77
1.87
(.12)
—
(.12)
1.75
12.88
16.85%
1.85%
1.83%
0.82%
821%
6,801
16,786
March 31, 2004
7.57
.04
3.32
3.36
(.04)
—
(.04)
3.32
10.89
44.45%
1.86%
1.86%
0.39%
1,200%
40,885
March 31, 2005
10.89
.05
.27
.32
(.08)
—
(.08)
.24
11.13
2.88%
1.83%
1.83%
0.43%
1,005%
27,181
March 31, 2003
10.08
.03
(2.52)
(2.49)
(.02)
—
(.02)
(2.51)
7.57
(24.74)%
1.88%
1.88%
0.35%
2,336%
15,074
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Realized
Net Increase
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
Expenses
(Loss)
Rate
omitted)
September 30, 2007D
$13.82
$
.08
$
(.85)
$
(.77)
$
—
$
—
$
—
$
(.77)
$13.05
(5.57)%
1.62%**
1.62%**
1.13%**
408%
$
625
Financial Services Fund A-Class
March 31, 2006
11.13
.14
1.76
1.90
(.12)
—
(.12)
1.78
12.91
17.12%
1.65%
1.64%
1.18%
821%
4,295
March 31, 2007
12.91
.10
.87
.97
(.06)
—
(.06)
.91
13.82
7.54%
1.61%
1.61%
0.74%
534%
1,107
March 31, 2005*
10.75
.05
.41
.46
(.08)
—
(.08)
.38
11.13
4.22%
1.55%**
1.55%**
0.70%**
1,005%
5
September 30, 2007D
Financial Services Fund C-Class
March 31, 2007
12.67
.01
.84
.85
(.06)
—
(.06)
.79
13.46
6.73%
2.34%
2.34%
0.06%
534%
5,382
13.46
.03
(.83)
(.80)
—
—
—
(.80)
12.66
(5.94)%
2.36%**
2.36%**
0.40%**
408%
2,847
March 31, 2006
11.01
.01
1.77
1.78
(.12)
—
(.12)
1.66
12.67
16.21%
2.36%
2.34%
0.11%
821%
2,081
March 31, 2004
7.57
(.02)
3.33
3.31
(.04)
—
(.04)
3.27
10.84
43.78%
2.37%
2.37%
(0.23)%
1,200%
2,242
March 31, 2005
10.84
(.01)
.26
.25
(.08)
—
(.08)
.17
11.01
2.24%
2.33%
2.33%
(0.10)%
1,005%
1,689
March 31, 2003
10.14
(.02)
(2.53)
(2.55)
(.02)
—
(.02)
(2.57)
7.57
(25.19)%
2.37%
2.37%
(0.19)%
2,336%
222
September 30, 2007D
15.28
(.02)
.92
.90
—
Health Care Fund Investor Class
—
—
.90
16.18
5.89%
1.37%**
1.37%**
(0.23)%**
271%
30,577
March 31, 2006
12.71
(.05)
1.88
1.83
—
—
—
1.83
14.54
14.40%
1.33%
1.33%
(0.35)%
568%
46,432
March 31, 2007
14.54
.03
.71
.74
—
—
—
.74
15.28
5.09%
1.35%
1.35%
0.23%
545%
33,878
March 31, 2004
9.21
(.07)
3.36
3.29
—
—
—
3.29
12.50
35.72%
1.36%
1.36%
(0.56)%
1,204%
19,801
March 31, 2005
12.50
(.05)
.26
.21
—
—
—
.21
12.71
1.68%
1.34%
1.34%
(0.42)%
610%
35,500
March 31, 2003
11.36
(.02)
(2.13)
(2.15)
—
—
—
(2.15)
9.21
(18.93)%
1.38%
1.38%
(0.25)%
1,395%
13,400
September 30, 2007D
14.59
(.06)
.88
.82
Health Care Fund Advisor Class
March 31, 2007
13.94
—
—
—
.82
15.41
5.62%
1.86%**
1.86%**
(0.74)%**
271%
13,122
March 31, 2006
12.25
(.12)
1.81
1.69
—
—
—
1.69
13.94
13.80%
1.84%
1.84%
(0.89)%
568%
14,577
(.05)
.70
.65
—
—
—
.65
14.59
4.66%
1.85%
1.85%
(0.37)%
545%
17,327
March 31, 2004
8.97
(.12)
3.26
3.14
—
—
—
3.14
12.11
35.01%
1.85%
1.85%
(1.05)%
1,204%
27,102
March 31, 2005
12.11
(.10)
.24
.14
—
—
—
.14
12.25
1.16%
1.84%
1.84%
(0.83)%
610%
16,511
March 31, 2003
11.11
(.06)
(2.08)
(2.14)
—
—
—
(2.14)
8.97
(19.26)%
1.88%
1.88%
(0.66)%
1,395%
23,127
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
NET ASSET
Net Realized
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net Assets,
Net Increase
BEGINNING
Investment
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Investment
Turnover
Period (000’s
VALUE,
Net
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Net
Portfolio
End of
Period Ended
OF PERIOD
Loss†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
Loss
Rate
omitted)
September 30, 2007D
$14.67
$ (.04)
$ .88
$ .84
$ —
$ —
$ —
$ .84
$15.51
5.73%
1.62%**
(0.50)%**
271%
$
919
Health Care Fund A-Class
March 31, 2006
12.25
(.08)
1.81
1.73
—
—
—
1.73
13.98
14.12%
1.62%
(0.60)%
568%
2,239
March 31, 2007
13.98
(.02)
.71
.69
—
—
—
.69
14.67
4.94%
1.60%
(0.13)%
545%
818
March 31, 2005*
11.65
(.05)
.65
.60
—
—
—
.60
12.25
5.15%
1.56%**
(0.65)%**
610%
1
September 30, 2007D
Health Care Fund C-Class
March 31, 2007
13.79
(.10)
.66
.56
—
—
—
.56
14.35
4.06%
2.34%
(0.73)%
545%
8,720
14.35
(.10)
.87
.77
—
—
—
.77
15.12
5.37%
2.36%**
(1.28)%**
271%
6,524
March 31, 2005
12.11
(.16)
.24
.08
—
—
—
.08
12.19
0.66%
2.33%
(1.36)%
610%
4,017
March 31, 2006
12.19
(.18)
1.78
1.60
—
—
—
1.60
13.79
13.13%
2.34%
(1.39)%
568%
7,114
March 31, 2004
9.03
(.18)
3.26
3.08
—
—
—
3.08
12.11
34.11%
2.37%
(1.60)%
1,204%
2,865
March 31, 2003
11.25
(.12)
(2.10)
(2.22)
—
—
—
(2.22)
9.03
(19.73)%
2.37%
(1.30)%
1,395%
421
September 30, 2007D
41.11
(.25)
7.30
7.05
—
—
—
7.05
48.16
17.15%
1.38%**
(1.14)%**
379%
21,801
Internet Fund Investor Class
March 31, 2006
32.29
(.40)
8.33
7.93
—
—
—
7.93
40.22
24.56%
1.34%
(1.10)%
1,371%
16,288
March 31, 2007
40.22
(.44)
1.33
.89
—
—
—
.89
41.11
2.21%
1.37%
(1.09)%
864%
5,496
March 31, 2004
20.43
(.41)
15.64
15.23
—
—
—
15.23
35.66
74.55%
1.36%
(1.31)%
1,340%
15,292
March 31, 2005
35.66
(.43)
(2.94)
(3.37)
—
—
—
(3.37)
32.29
(9.45)%
1.34%
(1.23)%
1,947%
5,210
March 31, 2003
30.55
(.29)
(9.83)
(10.12)
—
—
—
(10.12)
20.43
(33.13)%
1.38%
(1.34)%
2,052%
3,335
September 30, 2007D
39.61
(.36)
7.04
6.68
—
—
—
6.68
46.29
16.86%
1.86%**
(1.66)%**
379%
3,189
Internet Fund Advisor Class
March 31, 2006
31.41
(.55)
8.08
7.53
—
—
—
7.53
38.94
23.97%
1.85%
(1.58)%
1,371%
3,696
March 31, 2007
38.94
(.63)
1.30
.67
—
—
—
.67
39.61
1.72%
1.87%
(1.60)%
864%
863
March 31, 2004
20.05
(.54)
15.34
14.80
—
—
—
14.80
34.85
73.82%
1.86%
(1.81)%
1,340%
12,090
March 31, 2005
34.85
(.60)
(2.84)
(3.44)
—
—
—
(3.44)
31.41
(9.87)%
1.83%
(1.72)%
1,947%
829
March 31, 2003
30.18
(.40)
(9.73)
(10.13)
—
—
—
(10.13)
20.05
(33.57)%
1.82%
(1.79)%
2,052%
717
Internet Fund A-Class
March 31, 2007
September 30, 2007D
39.07
(.52)
1.32
.80
—
—
—
.80
39.87
2.05%
1.61%
(1.37)%
864%
139
39.87
(.30)
7.08
6.78
—
—
6.78
46.65
17.01%
1.63%**
(1.39)%**
379%
180
March 31, 2005*
30.65
(.31)
March 31, 2006
1.11
.80
—
—
—
.80
31.45
2.61%
1.55%**
(1.46)%**
1,947%
4
31.45
(.50)
8.12
7.62
—
—
—
7.62
39.07
24.23%
1.63%
(1.36)%
1,371%
470
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Realized
Net Increase
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
Internet Fund C-Class
September 30, 2007D
March 31, 2007
38.30
(.78)
1.27
.49
—
—
—
.49
38.79
1.28%
2.36%
(2.10)%
864%
1,017
$38.79
$ (.46)
$ 6.89
$ 6.43
$ —
$ —
$ —
$ 6.43
$45.22
16.58%
2.37%**
(2.15)%**
379%
$ 1,580
March 31, 2005
34.64
(.73)
(2.85)
(3.58)
—
—
—
(3.58)
31.06
(10.33)%
2.33%
(2.19)%
1,947%
1,596
March 31, 2006
31.06
(.73)
7.97
7.24
—
—
—
7.24
38.30
23.31%
2.35%
(2.09)%
1,371%
2,273
March 31, 2004
20.04
(.72)
15.32
14.60
—
—
—
14.60
34.64
72.85%
2.36%
(2.31)%
1,340%
1,556
March 31, 2003
30.28
(.50)
(9.74)
(10.24)
—
—
—
(10.24)
20.04
(33.82)%
2.37%
(2.34)%
2,052%
234
September 30, 2007D
35.87
.02
1.99
2.01
—
—
—
2.01
37.88
5.60%
1.38%**
0.12%**
311%
4,030
Leisure Fund Investor Class
March 31, 2006
30.50
(.07)
2.13
2.06
—
—
—
2.06
32.56
6.75%
1.34%
(0.25)%
734%
16,418
March 31, 2007
32.56
(—)§
3.31
3.31
—
—
—
3.31
35.87
10.17%
1.37%
(0.01)%
675%
9,130
March 31, 2004
17.88
(.06)
9.84
9.78
—
—
—
9.78
27.66
54.70%
1.36%
(0.31)%
1,870%
25,030
March 31, 2005
27.66
(.17)
3.01
2.84
—
—
—
2.84
30.50
10.27%
1.31%
(0.57)%
1,046%
15,080
March 31, 2003††
24.00
(.15)
(5.97)
(6.12)
—
—
—
(6.12)
17.88
(25.50)%
1.38%
(0.65)%
3,179%
2,325
Leisure Fund Advisor Class
March 31, 2007
31.15
(.10)
3.09
2.99
—
—
—
2.99
34.14
9.60%
1.87%
(0.32)%
675%
4,903
September 30, 2007D
34.14
(.06)
1.90
1.84
—
—
—
1.84
35.98
5.39%
1.88%**
(0.35)%**
311%
2,431
March 31, 2006
29.34
(.32)
2.13
1.81
—
—
—
1.81
31.15
6.17%
1.80%
(1.10)%
734%
5,372
March 31, 2004
17.37
(.23)
9.60
9.37
—
—
—
9.37
26.74
53.94%
1.86%
(1.06)%
1,870%
39,789
March 31, 2005
26.74
(.30)
2.90
2.60
—
—
—
2.60
29.34
9.72%
1.82%
(1.10)%
1,046%
27,750
March 31, 2003††
23.34
(.39)
(5.58)
(5.97)
—
—
—
(5.97)
17.37
(25.58)%
1.90%
(1.68)%
3,179%
3,592
Leisure Fund A-Class
March 31, 2007
31.24
(.14)
3.22
3.08
—
—
—
3.08
34.32
9.86%
1.60%
(0.41)%
675%
2,198
September 30, 2007D
34.32
(.06)
1.96
1.90
—
—
—
1.90
36.22
5.54%
1.59%**
(0.35)%**
311%
206
March 31, 2006
March 31, 2005*
24.59
(.08)
4.83
4.75
—
—
—
4.75
29.34
19.32%
1.55%**
(1.02)%**
1,046%
12
29.34
(.14)
2.04
1.90
—
—
—
1.90
31.24
6.48%
1.60%
(0.49)%
734%
68
September 30, 2007D
Leisure Fund C-Class
March 31, 2007
31.05
(.31)
3.12
2.81
—
—
—
2.81
33.86
9.05%
2.36%
(0.96)%
675%
3,091
33.86
(.17)
1.90
1.73
—
—
—
1.73
35.59
5.11%
2.38%**
(0.99)%**
311%
1,925
March 31, 2006
29.39
(.40)
2.06
1.66
—
—
—
1.66
31.05
5.65%
2.32%
(1.40)%
734%
997
March 31, 2004
17.61
(.38)
9.70
9.32
—
—
��
9.32
26.93
52.92%
2.37%
(1.59)%
1,870%
2,165
March 31, 2005
26.93
(.40)
2.86
2.46
—
—
—
2.46
29.39
9.13%
2.31%
(1.44)%
1,046%
2,502
March 31, 2003††
23.79
(.36)
(5.82)
(6.18)
—
—
—
(6.18)
17.61
(25.98)%
2.39%
(1.70)%
3,179%
36
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
Net Increase
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
Precious Metals Fund Investor Class
March 31, 2007
54.50
(.03)
1.74
1.71
—
—
—
1.71
56.21
3.14%
1.26%
(0.05)%
259%
149,876
September 30, 2007D
$56.21
$ (.17)
$ 9.81
$ 9.64
$ —
$ —
$ —
$ 9.64
$65.85
17.15%
1.27%**
(0.57)%**
119%
$ 144,105
March 31, 2006
35.64
March 31, 2005
44.32
(.05)
(8.63)
(8.68)
—
—
—
(8.68)
35.64
(19.58)%
1.23%
(0.12)%
358%
130,718
(.07)
18.93
18.86
—
—
—
18.86
54.50
52.92%
1.24%
(0.16)%
277%
213,017
March 31, 2004
26.78
(.12)
17.67
17.55
(.01)
—
(.01)
17.54
44.32
65.53%
1.26%
(0.32)%
550%
236,961
March 31, 2003
27.90
.03
(1.15)
(1.12)
—
—
—
(1.12)
26.78
(4.01)%
1.27%
0.09%
744%
75,185
Precious Metals Fund Advisor Class
September 30, 2007D
55.24
(.30)
9.62
9.32
—
—
—
9.32
64.56
16.87%
1.76%**
(1.03)%**
119%
7,224
March 31, 2006
35.37
(.28)
18.74
18.46
—
—
—
18.46
53.83
52.19%
1.75%
(0.70)%
277%
14,087
March 31, 2007
53.83
(.27)
1.68
1.41
—
—
—
1.41
55.24
2.62%
1.76%
(0.51)%
259%
8,387
March 31, 2005
44.17
(.03)
March 31, 2004*
31.68
(.18)
12.68
12.50
(.01)
—
(.01)
12.49
44.17
39.46%
1.72%**
(0.68)%**
550%
2,112
(8.77)
(8.80)
—
—
—
(8.80)
35.37
(19.92)%
1.72%
(0.09)%
358%
8,596
Precious Metals Fund A-Class
March 31, 2007
54.03
(.15)
1.71
1.56
—
—
—
1.56
55.59
2.89%
1.51%
(0.28)%
259%
4,778
September 30, 2007D
55.59
(.24)
9.70
9.46
—
—
—
9.46
65.05
17.02%
1.52%**
(0.83)%**
119%
6,006
March 31, 2006
35.41
(.19)
18.81
18.62
—
—
—
18.62
54.03
52.58%
1.52%
(0.43)%
277%
5,701
March 31, 2005*
37.26
(.01)
(1.84)
(1.85)
—
—
—
(1.85)
35.41
(4.97)%
1.45%**
(0.02)%**
358%
217
Precious Metals Fund C-Class
September 30, 2007D
53.12
(.44)
9.23
8.79
—
—
—
8.79
61.91
16.55%
2.26%**
(1.58)%**
119%
25,491
March 31, 2006
34.37
(.46)
18.11
17.65
—
—
—
17.65
52.02
51.35%
2.25%
(1.20)%
277%
24,266
March 31, 2007
52.02
(.51)
1.61
1.10
—
—
—
1.10
53.12
2.11%
2.26%
(1.00)%
259%
23,486
March 31, 2004
26.35
(.51)
17.33
16.82
(.01)
—
(.01)
16.81
43.16
63.83%
2.27%
(1.38)%
550%
17,998
March 31, 2005
43.16
(.39)
(8.40)
(8.79)
—
—
—
(8.79)
34.37
(20.37)%
2.23%
(1.08)%
358%
20,426
March 31, 2003
27.72
(.27)
(1.10)
(1.37)
—
—
—
(1.37)
26.35
(4.94)%
2.27%
(0.94)%
744%
2,150
Retailing Fund Investor Class
March 31, 2007
September 30, 2007D
14.47
(.02)
(.96)
(.98)
—
—
—
(.98) 13.49
-->(.98)
13.49
(6.77)%
1.37%**
(0.34)%**
640%
4,783
March 31, 2006
12.30
(.08)
1.26
1.18
—
—
—
1.18
13.48
9.59%
1.33%
(0.60)%
1,163%
7,608
13.48
(.06)
1.05
.99
—
—
—
.99
14.47
7.34%
1.36%
(0.45)%
952%
4,033
March 31, 2004
8.00
(.08)
3.82
3.74
—
—
—
3.74
11.74
46.75%
1.35%
(0.78)%
1,825%
11,738
March 31, 2005
11.74
(.06)
.62
.56
—
—
—
.56
12.30
4.77%
1.33%
(0.54)%
1,505%
7,529
March 31, 2003
11.12
(.07)
(3.05)
(3.12)
—
—
—
(3.12)
8.00
(28.06)%
1.38%
(0.82)%
3,788%
2,964
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
Net Increase
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
Retailing Fund Advisor Class
March 31, 2007
September 30, 2007D
$13.97
$
(.07)
$
(.90)
$
(.97)
$
—
$
—
$
—
$
(.97)
$13.00
(6.94)%
1.86%**
(1.06)%**
640%
$
1,264
March 31, 2006
11.99
(.15)
1.23
1.08
—
—
—
1.08
13.07
9.01%
1.82%
(1.18)%
1,163%
3,385
13.07
(.10)
1.00
.90
—
—
—
.90
13.97
6.89%
1.86%
(0.73)%
952%
2,791
March 31, 2004
March 31, 2005
7.85
(.13)
3.77
3.64
—
—
—
3.64
11.49
46.37%
1.85%
(1.25)%
1,825%
15,863
11.49
(.12)
.62
.50
—
—
—
.50
11.99
4.35%
1.83%
(1.09)%
1,505%
6,445
March 31, 2003
10.94
(.12)
(2.97)
(3.09)
—
—
—
(3.09)
7.85
(28.24)%
1.88%
(1.35)%
3,788%
14,965
Retailing Fund A-Class
September 30, 2007D
14.04
(.07)
(.88)
(.95)
March 31, 2007
13.10
(.07)
1.01
.94
—
—
—
.94
14.04
7.18%
1.57%
(0.54)%
952%
385
—
—
—
(.95)
13.09
(6.77)%
1.61%**
(0.92)%**
640%
116
March 31, 2006
12.01
(.11)
March 31, 2005*
10.45
(.07)
1.63
1.56
—
—
—
1.56
12.01
14.93%
1.68%**
(1.03)%**
1,505%
1
1.20
1.09
—
—
—
1.09
13.10
9.08%
1.59%
(0.87)%
1,163%
46
Retailing Fund C-Class
March 31, 2007
12.80
(.15)
.97
.82
—
—
—
.82
13.62
6.41%
2.34%
(1.17)%
952%
2,650
September 30, 2007D
13.62
(.10)
(.88)
(.98)
—
—
—
(.98)
12.64
(7.20)%
2.36%**
(1.49)%**
640%
2,387
March 31, 2005
11.37
(.17)
.60
.43
—
—
—
.43
11.80
3.78%
2.33%
(1.52)%
1,505%
1,774
March 31, 2006
11.80
(.20)
1.20
1.00
—
—
—
1.00
12.80
8.47%
2.34%
(1.65)%
1,163%
1,586
March 31, 2003
11.02
(.20)
(3.01)
(3.21)
—
—
—
(3.21)
7.81
(29.13)%
2.32%
(1.89)%
3,788%
85
March 31, 2004
7.81
(.18)
3.74
3.56
—
—
—
3.56
11.37
45.58%
2.36%
(1.72)%
1,825%
2,362
Technology Fund Investor Class
March 31, 2007
12.35
(.11)
.29
.18
—
—
—
.18
12.53
1.46%
1.36%
(0.91)%
684%
14,274
September 30, 2007D
12.53
(.05)
1.91
1.86
—
—
—
1.86
14.39
14.84%
1.37%**
(0.77)%**
368%
30,558
March 31, 2006
March 31, 2005
11.40
.03
(1.08)
(1.05)
—
—
—
(1.05)
10.35
(9.21)%
1.31%
0.33%
1,304%
13,346
10.35
(.09)
2.12
2.03
(.03)
—
(.03)
2.00
12.35
19.65%
1.33%
(0.79)%
666%
21,182
March 31, 2003
11.00
(.09)
(3.80)
(3.89)
—
—
—
(3.89)
7.11
(35.36)%
1.38%
(1.13)%
1,938%
8,348
March 31, 2004
7.11
(.11)
4.40
4.29
—
—
—
4.29
11.40
60.34%
1.36%
(1.07)%
1,853%
17,114
Technology Fund Advisor Class
March 31, 2007
11.94
(.16)
.27
September 30, 2007D
12.05
(.08)
1.84
1.76
—
—
—
1.76
13.81
14.61%
1.88%**
(1.18)%**
368%
6,049
March 31, 2006
10.06
(.14)
2.05
1.91
(.03)
—
(.03)
1.88
11.94
19.02%
1.84%
(1.32)%
666%
12,737
.11
—
—
—
.11
12.05
0.92%
1.86%
(1.41)%
684%
4,807
March 31, 2004
6.97
(.16)
4.32
4.16
March 31, 2005
11.13
.02
(1.09)
—
—
—
4.16
11.13
59.68%
1.86%
(1.58)%
1,853%
17,972
(1.07)
—
—
—
(1.07)
10.06
(9.61)%
1.83%
0.21%
1,304%
10,693
March 31, 2003
10.77
(.12)
(3.68)
(3.80)
—
—
—
(3.80)
6.97
(35.28)%
1.88%
(1.62)%
1,938%
16,717
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Increase
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
September 30, 2007D
$12.09
$ (.07)
$ 1.85
$ 1.78
$ —
$ —
$ —
$ 1.78
$13.87
14.72%
1.61%**
(1.00)%**
368%
$ 1,026
Technology Fund A-Class
March 31, 2006
10.07
(.13)
2.04
1.91
(.03)
—
(.03)
1.88
11.95
19.00%
1.63%
(1.15)%
666%
633
March 31, 2007
11.95
(.14)
.28
.14
—
—
—
.14
12.09
1.17%
1.61%
(1.18)%
684%
278
March 31, 2005*
9.32
—§
.75
.75
—
—
—
.75
10.07
8.05%
1.54%**
0.00%**
1,304%
6
September 30, 2007D
11.87
(.11)
1.80
1.69
—
—
—
1.69
13.56
14.24%
2.36%**
(1.74)%**
368%
5,433
Technology Fund C-Class
March 31, 2006
10.01
March 31, 2007
(.21)
2.04
1.83
(.03)
—
(.03)
1.80
11.81
18.31%
2.35%
(1.88)%
666%
2,800
11.81
(.22)
.28
.06
—
—
—
.06
11.87
0.51%
2.35%
(1.91)%
684%
1,538
March 31, 2004
7.00
(.21)
4.31
4.10
—
—
—
4.10
11.10
58.57%
2.36%
(2.13)%
1,853%
1,101
March 31, 2005
11.10
—§
(1.09)
(1.09)
—
—
—
(1.09)
10.01
(9.82)%
2.32%
0.00%
1,304%
1,284
March 31, 2003
10.90
(.18)
(3.72)
(3.90)
—
—
—
(3.90)
7.00
(35.78)%
2.37%
(2.07)%
1,938%
434
Telecommunications Fund Investor Class
March 31, 2007
17.74
.16
1.23
1.39
(.11)
—
(.11)
1.28
19.02
7.87%
1.37%
0.89%
430%
16,699
19.02
.05
3.20
3.25
—
—
—
3.25 22.27
-->3.25
22.27
17.09%
1.37%**
0.49%**
315%
27,534
March 31, 2006
14.33
.21
3.60
3.81
(.40)
—
(.40)
3.41
17.74
26.96%
1.38%
1.30%
820%
56,695
March 31, 2004
10.05
—§
5.48
5.48
(.05)
—
(.05)
5.43
15.48
54.59%
1.37%
0.01%
1,506%
14,406
March 31, 2005
15.48
.09
(1.24)
(1.15)
—
—
—
(1.15)
14.33
(7.43)%
1.35%
0.60%
1,142%
6,003
March 31, 2003††
15.12
.06
(5.13)
(5.07)
—
—
—
(5.07)
10.05
(33.53)%
1.38%
0.46%
2,431%
9,152
September 30, 2007D
18.24
Telecommunications Fund Advisor Class
(.02)
3.08
3.06
—
—
—
3.06
21.30
16.78%
1.87%**
(0.18)%**
315%
3,930
March 31, 2006
13.88
.12
3.50
3.62
(.40)
—
(.40)
3.22
17.10
26.46%
1.82%
0.81%
820%
8,487
March 31, 2007
17.10
.04
1.21
1.25
(.11)
—
(.11)
1.14
18.24
7.35%
1.83%
0.22%
430%
6,584
March 31, 2004
9.81
(.08)
5.39
5.31
(.05)
—
(.05)
5.26
15.07
54.20%
1.87%
(0.58)%
1,506%
7,376
March 31, 2005
15.07
.03
(1.22)
(1.19)
—
—
—
(1.19)
13.88
(7.90)%
1.86%
0.19%
1,142%
1,922
March 31, 2003††
14.76
(.09)
(4.86)
(4.95)
—
—
—
(4.95)
9.81
(33.54)%
1.86%
(0.68)%
2,431%
898
September 30, 2007D
18.28
(.02)
3.12
3.10
—
—
—
3.10
21.38
16.96%
1.58%**
(0.18)%**
315%
2,516
Telecommunications Fund A-Class
March 31, 2006
13.90
(.03)
3.68
3.65
(.40)
—
(.40)
3.25
17.15
26.64%
1.88%
(0.18)%
820%
4,193
March 31, 2007
17.15
.05
1.19
1.24
(.11)
—
(.11)
1.13
18.28
7.27%
1.49%
0.28%
430%
2,126
March 31, 2005*
13.55
.11
.24
.35
—
—
—
.35
13.90
2.58%
1.54%**
1.25%**
1,142%
3
FINANCIAL HIGHLIGHTS (continued)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
Net Realized
Net Increase
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
Telecommunications Fund C-Class
March 31, 2007
September 30, 2007D
$17.93
$
(.07)
$
3.03
$
2.96
$
—
$
—
$
—
$
2.96
$20.89
16.51%
2.36%**
(0.69)%**
315%
$
7,462
March 31, 2006
13.81
.01
3.48
3.49
(.40)
—
(.40)
3.09
16.90
25.65%
2.31%
0.09%
820%
2,827
16.90
(.06)
1.20
1.14
(.11)
—
(.11)
1.03
17.93
6.78%
2.33%
(0.35)%
430%
4,763
March 31, 2004
March 31, 2005
9.84
(.15)
5.42
5.27
(.05)
—
(.05)
5.22
15.06
53.62%
2.37%
(1.09)%
1,506%
3,635
15.06
(.07)
(1.18)
(1.25)
—
—
—
(1.25)
13.81
(8.30)%
2.38%
(0.51)%
1,142%
1,784
March 31, 2003††
14.97
(.09)
(5.04)
(5.13)
—
—
—
(5.13)
9.84
(34.27)%
2.41%
(0.71)%
2,431%
774
Transportation Fund Investor Class
September 30, 2007D
29.16
.04
(.79)
(.75)
March 31, 2007
28.30
(.14)
1.00
.86
—
—
—
.86
29.16
3.04%
1.36%
(0.48)%
686%
6,635
—
—
—
(.75)
28.41
(2.57)%
1.37%**
0.28%**
579%
4,857
March 31, 2006
22.42
(.09)
March 31, 2005
18.84
(.11)
3.69
3.58
—
—
—
3.58
22.42
19.00%
1.32%
(0.51)%
929%
7,890
5.97
5.88
—
—
—
5.88
28.30
26.23%
1.37%
(0.36)%
669%
48,580
March 31, 2003††
20.85
(.12)
(5.70)
(5.82)
—
—
—
(5.82)
15.03
(27.91)%
1.40%
(0.70)%
2,786%
960
March 31, 2004
15.03
(.06)
3.87
3.81
—
—
—
3.81
18.84
25.35%
1.36%
(0.34)%
1,624%
3,792
September 30, 2007D
27.42
.03
(.80)
(.77)
—
—
—
(.77)
26.65
(2.81)%
1.87%**
0.18%**
579%
3,465
Transportation Fund Advisor Class
March 31, 2006
21.31
(.19)
5.63
5.44
—
—
—
5.44
26.75
25.53%
1.86%
(0.81)%
669%
8,478
March 31, 2007
26.75
(.26)
.93
.67
—
—
—
.67
27.42
2.50%
1.86%
(0.97)%
686%
3,556
March 31, 2005
March 31, 2004
14.40
(.12)
3.74
3.62
—
—
—
3.62
18.02
25.14%
1.83%
(0.73)%
1,624%
4,284
18.02
(.21)
3.50
3.29
—
—
—
3.29
21.31
18.26%
1.82%
(1.05)%
929%
5,748
March 31, 2003††
19.98
(.15)
(5.43)
(5.58)
—
—
—
(5.58)
14.40
(27.93)%
1.92%
(0.94)%
2,786%
3,561
Transportation Fund A-Class
March 31, 2007
26.87
(.19)
.92
.73
—
—
—
.73
27.60
2.72%
1.61%
(0.70)%
686%
483
September 30, 2007D
27.60
.01
(.75)
(.74)
—
—
—
(.74)
26.86
(2.68)%
1.62%**
0.09%**
579%
308
March 31, 2005*
18.73
(.09)
2.70
2.61
—
—
—
2.61
21.34
13.93%
1.54%**
(0.71)%**
929%
22
March 31, 2006
21.34
(.17)
5.70
5.53
—
—
—
5.53
26.87
25.91%
1.66%
(0.71)%
669%
3,044
Transportation Fund C-Class
March 31, 2007
27.14
(.40)
.94
September 30, 2007D
27.68
(.08)
(.76)
(.84)
—
—
—
(.84)
26.84
(3.03)%
2.36%**
(0.59)%**
579%
2,990
March 31, 2006
21.71
(.35)
5.78
5.43
—
—
—
5.43
27.14
25.01%
2.38%
(1.43)%
669%
5,385
.54
—
—
—
.54
27.68
1.99%
2.37%
(1.47)%
686%
4,894
March 31, 2004
14.85
(.25)
3.83
3.58
March 31, 2005
18.43
(.32)
3.60
—
—
—
3.58
18.43
24.11%
2.36%
(1.53)%
1,624%
656
3.28
—
—
—
3.28
21.71
17.80%
2.32%
1.51)%
929%
1,807
March 31, 2003††
20.73
(.27)
(5.61)
(5.88)
—
—
—
(5.88)
14.85
(28.36)%
2.36%
(1.51)%
2,786%
514
FINANCIAL HIGHLIGHTS (concluded)
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
AVERAGE NET ASSETS:
RATIOS TO
NET ASSET
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
Net Realized
Net Increase
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Income
Turnover
Period (000’s
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return†††
Expenses
(Loss)
Rate
omitted)
September 30, 2007D
$31.89
$
.25
$
(.39)
$
(.14)
$
—
$
—
$
—
$
(.14)
$
31.75
(0.41)%
1.37%**
1.51%**
174%
$
21,461
Utilities Fund Investor Class
March 31, 2006
23.62
.51
1.21
1.72
(.44)
—
(.44)
1.28
24.90
7.25%
1.33%
1.99%
728%
11,717
March 31, 2007
24.90
.52
6.83
7.35
(.36)
—
(.36)
6.99
31.89
29.64%
1.37%
1.86%
557%
84,150
March 31, 2004
16.38
.45
4.71
5.16
(.97)
—
(.97)
4.19
20.57
32.11%
1.35%
2.50%
1,609%
19,170
March 31, 2005
20.57
.53
2.82
3.35
(.30)
—
(.30)
3.05
23.62
16.35%
1.33%
2.46%
1,124%
17,861
March 31, 2003††
25.44
.60
(9.12)
(8.52)
(.54)
—
(.54)
(9.06)
16.38
(33.55)%
1.39%
3.24%
3,158%
9,978
September 30, 2007D
30.65
.15
(.34)
(.19)
—
—
—
(.19)
30.46
(0.62)%
1.86%**
0.96%**
174%
2,968
Utilities Fund Advisor Class
March 31, 2006
22.96
.36
1.20
1.56
(.44)
—
(.44)
1.12
24.08
6.76%
1.83%
1.46%
728%
1,427
March 31, 2007
24.08
.37
6.56
6.93
(.36)
—
(.36)
6.57
30.65
28.90%
1.86%
1.38%
557%
11,929
March 31, 2004
16.11
.30
4.66
4.96
(.97)
—
(.97)
3.99
20.10
31.39%
1.84%
1.91%
1,609%
1,072
March 31, 2005
20.10
.42
2.74
3.16
(.30)
—
(.30)
2.86
22.96
15.78%
1.83%
1.95%
1,124%
8,045
March 31, 2003††
25.23
.33
(8.91)
(8.58)
(.54)
—
(.54)
(9.12)
16.11
(34.07)%
1.89%
1.74%
3,158%
2,239
September 30, 2007D
30.87
.21
(.38)
(.17)
—
—
—
(.17)
30.70
(0.55)%
1.62%**
1.31%**
174%
2,938
Utilities Fund A-Class
March 31, 2006
23.00
.44
1.18
1.62
(.44)
—
(.44)
1.18
24.18
7.01%
1.60%
1.75%
728%
626
March 31, 2007
24.18
.43
6.62
7.05
(.36)
—
(.36)
6.69
30.87
29.28%
1.61%
1.52%
557%
4,756
March 31, 2005*
20.66
.40
2.24
2.64
(.30)
—
(.30)
2.34
23.00
12.84%
1.54%**
2.98%**
1,124%
128
September 30, 2007D
29.66
.08
(.35)
(.27)
—
—
—
(.27)
29.39
(0.91)%
2.37%**
0.56%**
174%
5,195
Utilities Fund C-Class
March 31, 2006
22.47
.24
1.15
1.39
(.44)
—
(.44)
.95
23.42
6.15%
2.34%
1.00%
728%
5,346
March 31, 2007
23.42
.22
6.38
6.60
(.36)
—
(.36)
6.24
29.66
28.30%
2.36%
0.82%
557%
11,013
March 31, 2004
15.93
.22
4.59
4.81
(.97)
—
(.97)
3.84
19.77
30.80%
2.36%
1.19%
1,609%
3,948
March 31, 2005
19.77
.29
2.71
3.00
(.30)
—
(.30)
2.70
22.47
15.23%
2.32%
1.39%
1,124%
4,807
March 31, 2003††
25.08
.30
(8.91)
(8.61)
(.54)
—
(.54)
(9.15)
15.93
(34.40)%
2.42%
1.56%
3,158%
939
August 1, 2003 — Precious Metals Fund Advisor Class;
* Since the commencement of operations:
Energy Services Fund A-Class, Financial Services Fund A-Class, Health Care Fund A-Class, Internet Fund A-Class, Leisure Fund A-Class, Precious Metals Fund A-Class, Retailing Fund
September 1, 2004 — Banking Fund A-Class, Basic Materials A-Class, Biotechnology Fund A-Class, Consumer Products Fund A-Class, Electronics Fund A-Class, Energy Fund A-Class,
** Annualized
A-Class, Technology Fund A-Class, Telecommunications Fund A-Class, Transportation Fund A-Class and Utilities Fund A-Class.
†† Per share amounts for the year ended March 31, 2003 have been restated to reflect a 1:3 reverse stock split effective April 21, 2003.
† Calculated using the average daily shares outstanding for the year.
††† Total investment return does not reflect the impact of any applicable sales charges and has not been annualized.
§ Less than $.01 per share.
D Unaudited
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization and Significant Accounting Policies
as of 4:00 p.m. Over-the-Counter options held by the
Organization
Trust are valued using the average bid price obtained
The Rydex Series Funds (the “Trust”) is registered with
from one or more security dealers. The value of futures
the SEC under the Investment Company Act of 1940 (the
contracts purchased and sold by the Trust is accounted
“1940 Act”) as a non-diversified, open-ended investment
for using the unrealized gain or loss on the contracts
current realized settlement prices. Financial futures
company, and is authorized to issue an unlimited number
that is determined by marking the contracts to their
of no par value shares. The Trust offers five separate
classes of shares, Investor Class Shares, Advisor Class
contracts are valued at the last quoted sales price,
Shares, A-Class Shares, C-Class Shares, and H-Class
usually as of 4:00 p.m. on the valuation date. In the
Shares. C-Class Shares have a 1% contingent deferred
event that the exchange for a specific futures contract
sales charge (“CDSC”) if shares are redeemed within 12
closes earlier than 4:00 p.m., the futures contract is
months of purchase. Sales of shares of each Class are
valued at the Official Settlement Price of the exchange.
made without a front-end sales charge at the net asset
However, the underlying securities from which the
value per share, with the exception of A-Class Shares.
futures contract value is derived are monitored until
A-Class Shares are sold at net asset value, plus the
4:00 p.m. to determine if fair valuation would provide a
applicable front-end sales charge. The sales charge varies
more accurate valuation. Short-term securities, if any,
depending on the amount purchased, but will not
are valued at amortized cost, which approximates
exceed 4.75%. A-Class Share purchases of $1 million or
market value.
more are exempt from the front-end sales charge but
Structured notes are valued in accordance with the
have a 1% CDSC if shares are redeemed within 18
terms of their agreement at the value of the underlying
months of purchase.
index close, usually 4:00 p.m., adjusted for any interest
At September 30, 2007, the Trust consisted of fifty-three
accruals and financing charges. If the securities
separate Funds: twenty-two Benchmark Funds, one
comprising the underlying index cease trading before a
Money Market Fund, ten Alternative Strategies Funds,
Fund’s close of business, the index will be fair valued
seventeen Sector Funds and three Essential Portfolio
with the use of an appropriate market indicator.
Funds. This report covers the seventeen Sector Funds
Traditional open-end investment companies (“Mutual
(the “Funds”), while the Money Market Fund, the
Funds”) are valued at their Net Asset Value (the “NAV”)
Benchmark Funds, the Alternative Strategies Funds and
as of the close of business, usually 4:00 p.m. on the
the Essential Portfolio Funds are contained in separate
valuation date. Exchange Traded Funds (“ETFs”) and
reports.
closed-end investment companies are valued at the last
Rydex Investments provides advisory, transfer agent and
quoted sales price.
administrative services, and accounting services to the
The value of domestic equity index and credit default
Trust. Rydex Distributors, Inc. (the “Distributor”) acts as
swap agreements entered into by a Fund is accounted
principal underwriter for the Trust. Both Rydex
for using the unrealized gain or loss on the agreements
Investments and the Distributor are affiliated entities.
that is determined by marking the agreements to the
Significant Accounting Policies
last quoted value of the index that the swap pertains to
The following significant accounting policies are in
at the close of the NYSE, usually 4:00 p.m. The swap’s
conformity with U.S. generally accepted accounting
market value is then adjusted to include dividends
accrued, financing charges and/or interest associated
with the swap agreements.
principles and are consistently followed by the Trust. All
time references are based on Eastern Time. The
information contained in these notes may not apply to
The value of foreign equity index and currency index
every Fund in the Trust.
swap agreements entered into by the Funds are
accounted for using the unrealized gain or loss on the
A. Equity securities listed on an exchange (New York
Stock Exchange (“NYSE”) or American Stock Exchange)
agreements that is determined by marking the
are valued at the last quoted sales price as of the close
agreements to the price at which orders are being filled
of business on the NYSE, usually 4:00 p.m. on the
at the close of the NYSE, usually 4:00 p.m. In the event
valuation date. Equity securities listed on the NASDAQ
that no order is filled at 4:00 p.m., the security dealer
market system are valued at the NASDAQ Official
provides a fair value quote at which the swap agreement
Closing Price, usually as of 4:00 p.m. on the valuation
is valued. The swap’s market value is then adjusted to
date. Listed options held by the Trust are valued at the
include dividends accrued, financing charges and/or
interest associated with the swap agreements.
Official Settlement Price listed by the exchange, usually
68
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Investments, including structured notes, for which market
transactions. In addition, the Fund must pay out the
quotations are not readily available, are fair valued as
dividend rate of the equity or coupon rate of the
determined in good faith by Rydex Investments under
treasury obligation to the lender and records this as an
direction of the Board of Trustees using methods
expense. Short dividends or interest expense is a cost
established or ratified by the Board of Trustees. These
associated with the investment objective of short sales
methods include, but are not limited to: (i) general
transactions, rather than an operational cost associated
information as to how these securities and assets trade;
with the day-to-day management of any mutual fund.
(ii) in connection with futures contracts and options
F. Upon the purchase of an option by a Fund, the
thereupon, and other derivative investments, information
as to how (a) these contracts and other derivative
premium paid is recorded as an investment, the value of
investments trade in the futures or other derivative
which is marked-to-market daily. When a purchased
markets, respectively, and (b) the securities underlying
option expires, that Fund will realize a loss in the
amount of the cost of the option. When a Fund enters
these contracts and other derivative investments trade in
the cash market; and (iii) other information and consid-
into a closing sale transaction, that Fund will realize a
erations, including current values in related markets.
gain or loss depending on whether the proceeds from
the closing sale transaction are greater or less than the
B. Securities transactions are recorded on the trade date
cost of the option. When a Fund exercises a put option,
for financial reporting purposes. Realized gains and
that Fund will realize a gain or loss from the sale of the
losses from securities transactions are recorded using
underlying security and the proceeds from such sale will
the identified cost basis. Proceeds from lawsuits related
be decreased by the premium originally paid. When a
to investment holdings are recorded as realized gains in
Fund exercises a call option, the cost of the security
the respective Fund. Dividend income is recorded on the
purchased by that Fund upon exercise will be increased
ex-dividend date, net of applicable taxes withheld by
by the premium originally paid. When a Fund writes
foreign countries. Interest income, including amortization
(sells) an option, an amount equal to the premium
of premiums and accretion of discount, is accrued on a
received is entered in that Fund's accounting records as
daily basis.
an asset and equivalent liability. The amount of the
current value of the option written. When a written
C. Distributions of net investment income and net
liability is subsequently marked-to-market to reflect the
realized capital gains are recorded on the ex-dividend
date and are determined in accordance with income tax
option expires, or if a Fund enters into a closing
regulations which may differ from U.S. generally
purchase transaction, that Fund realizes a gain (or loss if
accepted accounting principles. These differences are
the cost of a closing purchase transaction exceeds the
primarily due to differing treatments for items such as
premium received when the option was sold).
deferral of wash sales and post-October losses and
G. The Trust may enter into stock and bond index
regulated futures contracts and options. Net investment
futures contracts and options on such futures contracts.
income and loss, net realized gains and losses, and net
Futures contracts are contracts for delayed delivery of
assets are not affected by these differences.
securities at a specified future delivery date and at a
D. The Funds seek capital appreciation and invest
specific price. Upon entering into a contract, a Fund
substantially all of their assets in equity securities of
deposits and maintains as collateral such initial margin as
companies involved in their sector.
required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to
E. When a Fund engages in a short sale of an equity or
fixed income security, an amount equal to the proceeds
receive from or pay to the broker an amount of cash
is reflected as an asset and an equivalent liability. The
equal to the daily fluctuation in value of the contract.
amount of the liability is subsequently marked-to-market
Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or
to reflect the market value of the short sale. The Fund
losses. When the contract is closed, the Fund records a
maintains a segregated account of cash and/or securities
realized gain or loss equal to the difference between the
as collateral for short sales. The Fund is exposed to
value of the contract at the time it was opened and the
market risk based on the amount, if any, that the market
value of the security exceeds the market value of the
value at the time it was closed.
domestic currency index swap agreements, which are
securities in the segregated account. Fees, if any, paid to
H. The Trust may enter into domestic equity index and
brokers to borrow securities in connection with short
sales are considered part of the cost of short sale
over-the-counter contracts in which one party agrees to
make periodic payments based on the change in market
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
69
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
value of a specified equity security, basket of equity
J. The Funds may also purchase American Depository
securities, equity index, or domestic currency index, in
Receipts, U.S. Government securities, and enter into
return for periodic payments based on a fixed or variable
repurchase agreements.
interest rate or the change in market value of a different
K. The Funds may leave cash overnight in their cash
equity security, basket of equity securities, equity index,
account with the custodian, U.S. Bank. Periodically, a
or domestic currency index. Swap agreements are used
to obtain exposure to an equity or market without
Fund may have cash due to custodian bank as an
owning or taking physical custody of securities. The swap
overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based
agreements are marked-to-market daily based upon
on the federal funds rate.
quotations from market makers and the change, if any, is
recorded as unrealized gain or loss. Payments received
L. Interest and dividend income, most expenses, all
or made as a result of the swap agreement or
realized gains and losses, and all unrealized gains and
termination of the agreement are recognized as realized
losses are allocated to the Classes based upon the value
gains or losses.
of the outstanding shares in each Class. Certain costs,
The Trust may enter into credit default swap agreements
such as distribution fees relating to A-Class Shares and
where one party, the protection buyer, makes an upfront
H-Class Shares and service and distribution fees related
to Advisor Class Shares and C-Class Shares, are charged
or periodic payments to counterparty, the protection
directly to specific Classes. In addition, certain expenses
seller, in exchange for the right to receive a contingent
have been allocated to the individual Funds in the Trust
payment. The maximum amount of the payment may
on a pro rata basis upon the respective aggregate net
equal the notional amount, at par, of the underlying
index or security as a result of a related credit event.
assets of each Fund included in the Trust.
Upfront payments received or made by a Fund, are
M. The preparation of financial statements in conformity
amortized over the expected life of the agreement.
with U.S. generally accepted accounting principles
Periodic payments received or paid by a Fund are
requires management to make estimates and
recorded as realized gains or losses. The credit default
assumptions that affect the reported amount of assets
liabilities at the date of the financial statements and the
contracts are marked-to-market daily based upon
and liabilities and disclosure of contingent assets and
quotations from market makers and the change, if any, is
recorded as unrealized gain or loss. Payments received
reported amounts of revenues and expenses during the
or made as a result of a credit event or termination of
reporting period. Actual results could differ from these
the contract are recognized, net of a proportional
estimates.
amount of the upfront payment, as realized gains or
2. Financial Instruments
losses.
As part of its investment strategy, the Trust may utilize
I. The Trust may invest in structured notes, which are
short sales and a variety of derivative instruments,
over-the-counter contracts linked to the performance of
including options, futures, options on futures, structured
an underlying benchmark such as interest rates, equity
notes, and swap agreements. These investments involve,
markets, equity indices, commodities indices, corporate
to varying degrees, elements of market risk and risks in
credits or foreign exchange markets. A structured note is
excess of the amounts recognized in the Statements of
a type of bond in which an issuer borrows money from
Assets and Liabilities.
investors and pays back the principal, adjusted for
Throughout the normal course of business, the Funds
performance of the underlying benchmark, at a specified
enter into contracts that contain a variety of
maturity date. In addition, the contract may require
periodic interest payments. Structured notes are used to
representations and warranties which provide general
obtain exposure to a market without owning or taking
indemnifications. The Funds’ maximum exposure under
physical custody of securities or commodities.
these arrangements is unknown, as this would involve
Fluctuations in value of the structured notes are
future claims that may be made against the Funds
and/or their affiliates that have not yet occurred.
recorded as unrealized gains and losses in the
accompanying financial statements. Coupon payments
However, based on experience, the Funds expect the
are recorded as income while net payments are recorded
risk of loss to be remote.
as net realized gains/losses.
Short sales are transactions in which a Fund sells an
equity or fixed income security it does not own. If the
70
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
security sold short decreases in price between the time
the Trust will not enter into any swap agreement unless
the Fund sells the security and closes its short position,
Rydex Investments believes that the other party to the
that Fund will realize a gain on the transaction.
transaction is creditworthy, the Funds bear the risk of
Conversely, if the security increases in price during the
loss of the amount expected to be received under a
period, that Fund will realize a loss on the transaction.
swap agreement in the event of the default or
The risk of such price increases is the principal risk of
bankruptcy of the agreement counterparty.
engaging in short sales.
There are several risks associated with credit default
The risk associated with purchasing options is limited to
swaps. Credit default swaps involve the exchange of a
the premium originally paid. The risk in writing a covered
fixed-rate premium for protection against the loss in
call option is that a Fund may forego the opportunity for
value of an underlying debt instrument in the event of a
profit if the market price of the underlying security
defined credit event (such as payment default or
increases and the option is exercised. The risk in writing
bankruptcy). Under the terms of the swap, one party acts
a covered put option is that a Fund may incur a loss if
as a “guarantor,” receiving a periodic payment that is a
the market price of the underlying security decreases
fixed percentage applied to a notional principal amount.
and the option is exercised. In addition, there is the risk
In return, the party agrees to purchase the notional
that a Fund may not be able to enter into a closing
amount of the underlying instrument, at par, if a credit
transaction because of an illiquid secondary market or,
event occurs during the term of the swap. A Fund may
for over-the-counter options, because of the
enter into credit default swaps in which that Fund or its
counterparty’s inability to perform.
counterparty acts as guarantor. By acting as the
There are several risks in connection with the use of
guarantor of a swap, that Fund assumes the market and
futures contracts. Risks may be caused by an imperfect
credit risk of the underlying instrument, including
correlation between movements in the price of the
liquidity and loss of value.
instruments and the price of the underlying securities. In
In conjunction with the use of short sales, options,
addition, there is the risk that a Fund may not be able to
futures, options on futures, and swap agreements, the
enter into a closing transaction because of an illiquid
Funds are required to maintain collateral in various
secondary market.
forms. The Funds use, where appropriate, depending on
There are several risks associated with the use of
the financial instrument utilized and the broker involved,
structured notes. Structured securities are leveraged,
margin deposits at the broker, cash and/or securities
thereby providing an exposure to the underlying
segregated at the custodian bank, discount notes, or the
benchmark of three times the face amount and
repurchase agreements allocated to each Fund.
increasing the volatility of each note relative to the
The risks inherent in the use of short sales, options,
change in the underlying linked financial instrument. A
futures contracts, options on futures contracts, structured
highly liquid secondary market may not exist for the
notes, and swap agreements, include i) adverse changes
structured notes a Fund invests in, which may make it
in the value of such instruments; ii) imperfect correlation
difficult for that Fund to sell the structured notes it holds
between the price of the instruments and movements in
at an acceptable price or to accurately value them. In
the price of the underlying securities, indices, or futures
addition, structured notes are subject to the risk that the
contracts; iii) the possible absence of a liquid secondary
counterparty to the instrument, or issuer, might not pay
market for any particular instrument at any time; and iv)
interest when due or repay principal at maturity of the
the potential of counterparty default. The Trust has
obligation. Although the Trust will not invest in any
established strict counterparty credit guidelines and
structured notes unless Rydex Investments believes that
enters into transactions only with financial institutions of
the issuer is creditworthy, a Fund does bear the risk of
investment grade or better.
loss of the amount expected to be received in the event
3. Fees And Other Transactions With Affiliates
Under the terms of an investment advisory contract, the
of the default or bankruptcy of the issuer.
There are several risks associated with the use of swap
Trust pays Rydex Investments investment advisory fees
agreements that are different from those associated with
calculated at an annualized rate of 0.85% of the average
ordinary portfolio securities transactions. Swap
agreements may be considered to be illiquid. Although
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
71
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
daily net assets of each of the Funds, except the
annual 0.75% distribution fee reimburses the Distributor
Precious Metals Fund, which is 0.75% of the average
for paying the shareholder's financial advisor an ongoing
daily net assets.
sales commission. The Distributor advances the first
Advisor. The Distributor retains the service and
Rydex Investments provides transfer agent and
year’s service and distribution fees to the Financial
distribution fees on accounts with no authorized dealer
administrative services to the Funds for fees calculated
at an annualized rate of 0.25% of the average daily net
assets of each Fund.
of record.
Rydex Investments also provides accounting services to
During the period ended September 30, 2007, the
the Trust whose fee is calculated at an annualized rate of
Distributor retained sales charges of $370,341 relating to
0.10% on the first $250 million of the average daily net
sales of A-Class Shares of the Trust.
assets, 0.075% on the next $250 million of the average
Certain officers and trustees of the Trust are also officers
daily net assets, 0.05% on the next $250 million of the
of Rydex Investments.
average daily net assets, and 0.03% on the average daily
net assets over $750 million of each Fund.
4. Federal Income Tax Information
The Funds intend to comply with the provisions of
Rydex Investments engages external service providers to
Subchapter M of the Internal Revenue Code applicable
perform other necessary services to the Trust, such as
to regulated investment companies and will distribute
accounting and auditing related services, legal services,
substantially all net investment income and capital gains
printing and mailing, etc. on a pass-through basis. Such
to shareholders. Therefore, no Federal income tax
expenses vary from Fund to Fund and are allocated to
provision has been recorded.
the Funds based on relative net assets. Organizational
and setup costs for new Funds are paid by the Trust.
Income and capital gain distributions are determined in
accordance with Federal income tax regulations, which
The Trust has adopted a Distribution Plan and
may differ from U.S. generally accepted accounting
Shareholder Services Plan applicable to its Advisor Class
principles. These differences are primarily due to
Shares and a Distribution Plan applicable to A-Class
differing treatments for derivatives, foreign currency
Shares and H-Class Shares for which the Distributor and
transactions, losses deferred due to wash sales, losses
other firms that provide distribution and/or shareholder
deferred due to post-October losses, and excise tax
services (“Service Providers”) may receive compensation.
regulations.
If a Service Provider provides distribution services, the
Trust will pay distribution fees to the Distributor at an
Permanent book and tax basis differences, if any, will
annual rate not to exceed 0.25% of average daily net
result in reclassifications. This includes reclasses due to
assets, pursuant to Rule 12b-1 of the 1940 Act. The
net operating losses, non-deductible expenses,
Distributor, in turn, will pay the Service Provider out of its
differences in the treatment of certain investments, and
fees. The Distributor may, at its discretion, retain a
the utilization of earnings and profits distributed to the
portion of such payments to compensate itself for
shareholders on redemption of shares as part of the
distribution services. With regard to Advisor Class Shares
dividends paid deduction for income tax purposes.
only, if a Service Provider provides shareholder services,
These reclassifications have no effect on net assets or
the Distributor will receive shareholder servicing fees
net asset values per share.
from the Trust at an annual rate not to exceed 0.25% of
average daily net assets. The Distributor, in turn, will pay
the Service Provider out of its fees.
The Trust has adopted a separate Distribution and
Shareholder Services Plan applicable to its C-Class
Shares that allows the Funds to pay annual distribution
and service fees of 1.00% of the Funds’ C-Class Shares
average daily net assets. The annual 0.25% service fee
compensates the shareholder's financial advisor for
providing on-going services to the shareholder. The
72
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
At September 30, 2007, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all
securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for
which there was an excess of tax cost over value were as follows:
Tax
Unrealized
Unrealized
Tax
Unrealized
Tax
Net
Fund
Cost
Gain
Loss
Gain
Banking Fund
$
18,088,725
$
1,067,124
$
(23,287)
$
1,043,837
Basic Materials Fund
132,451,373
30,644,807
(895,951)
29,748,856
Biotechnology Fund
94,326,362
37,835,289
(1,122,419)
36,712,870
Consumer Products Fund
21,178,211
6,105,497
(26,905)
6,078,592
Electronics Fund
38,132,324
9,119,431
(33,380)
9,086,051
Energy Fund
82,461,622
54,459,839
(72,610)
54,387,229
Energy Services Fund
202,682,689
98,687,056
(805,243)
97,881,813
Financial Services Fund
26,736,616
1,916,690
(211,424)
1,705,266
Health Care Fund
44,707,067
11,861,032
(149,830)
11,711,202
Internet Fund
27,842,159
4,629,474
(26,184)
4,603,290
Leisure Fund
7,109,426
2,967,185
(24,997)
2,942,188
Precious Metals Fund
115,886,436
110,198,891
(151,851)
110,047,040
Retailing Fund
7,917,887
2,628,177
(9,037)
2,619,140
Technology Fund
43,506,484
6,312,249
(397,553)
5,914,696
Telecommunications Fund
38,680,478
10,344,642
(74,239)
10,270,403
Transportation Fund
11,816,044
3,758,951
(42,067)
3,716,884
Utilities Fund
28,149,005
8,644,997
—
8,644,997
5. Repurchase Agreements
The Trust transfers uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in
one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The
collateral is in the possession of the Trust’s custodian and is evaluated daily to ensure that its market value exceeds by, at a
minimum, 102% of the delivery value of the repurchase agreements at maturity. Each Fund holds a pro rata share of the
collateral based on the dollar amount of the repurchase agreement entered into by each Fund.
The repurchase agreements executed by the joint account and outstanding as of September 30, 2007, were as follows:
Counterparty
Terms of Agreement
Face Value
Market Value
Repurchase Price
Lehman Brothers
Holdings, Inc.
3.90% due 10/01/07
$60,278,432
$60,278,432
$60,298,023
$60,278,432
$60,298,023
As of September 30, 2007, the collateral for the repurchase agreements in the joint account was as follows:
Security Type
Maturity Dates
Range of Rates
Par Value
Market Value
U.S. Treasury Bills
01/31/08 - 03/13/08
0.00%
$62,520,000
$61,485,464
$61,485,464
In the event of counterparty default, the Trust has the right to collect the collateral to offset losses incurred. There is
potential loss to the Trust in the event the Trust is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while
the Trust seeks to assert its rights. The Trust’s investment advisor, acting under the supervision of the Board of Trustees,
reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Trust enters into
repurchase agreements to evaluate potential risks.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
73
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
6. Securities Transactions
During the period ended September 30, 2007, the cost of purchases and proceeds from sales of investment securities,
excluding short-term and temporary cash investments, were:
Banking
Materials
Basic
Biotech-
Consumer
Energy
Financial
Fund
Fund
nology
Fund
Products
Fund
Electronics
Fund
Energy
Services
Services
Fund
Fund
Fund
Purchases
$74,908,267
$192,361,046
$89,882,775
$77,823,134
$101,046,062
$101,963,176
$259,498,167
$151,348,369
Sales
$72,298,094
$171,301,251
$66,404,462
$89,235,680
$80,634,872
$117,525,252
$208,748,063
$170,433,029
Health
Precious
Telecommu-
Transpor-
Fund
Care
Internet
Fund
Leisure
Metals
Fund
Fund
Retailing
Fund
Technology
Fund
nications
Fund
tation
Fund
Purchases
$164,178,252
$63,569,227
$33,784,982
$209,456,638
$54,205,048
$142,571,882
$138,554,348
$87,017,903
Sales
$177,061,362
$46,421,784
$44,881,545
$241,615,435
$55,122,580
$123,730,461
$131,388,425
$90,358,827
Utilities
Fund
Purchases
$116,024,664
Sales
$194,386,201
74
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
7. Share Transactions
The Trust is authorized to distribute an unlimited number of no par value shares. Transactions in shares for the periods presented were:
Shares Purchased
Purchased Through Dividend
Reinvestment
Shares Redeemed
Net Shares Purchased (Redeemed)
Period Ended
Year Ended
Period Ended
Year Ended
Period Ended
Year Ended
Period Ended
Year Ended
September 30,
2007†
March 31,
2007
September 30,
2007†
March 31,
2007
September 30,
2007†
March 31,
2007
September 30,
March 31,
2007†
2007
Banking Fund
Investor Class
7,314,298
13,067,229
—
3,352
(6,889,088)
(13,036,401)
425,210
34,180
Advisor Class
A-Class
1,118,432
96,335
4,279,492
241,253
—
—
2,142
1,227
(1,234,059)
(23,112)
(4,254,126)
(233,964)
(115,627)
27,508
73,223
8,516
Basic Materials Fund
C-Class
1,101,734
1,233,441
—
2,184
(1,240,142)
(991,968)
(138,408)
243,657
Investor Class
Advisor Class
4,813,340
820,685
2,382,754
7,775,885
—
4,563
(4,452,393)
(6,821,454)
360,947
958,994
A-Class
227,819
229,310
—
447
(133,394)
(198,305)
94,425
31,452
—
1,570
(928,225)
(2,214,828)
(107,540)
169,496
Biotechnology Fund
C-Class
505,641
496,486
—
1,234
(400,895)
(501,647)
104,746
(3,927)
Investor Class
Advisor Class
4,886,496
890,142
13,870,842
—
—
(3,980,911)
2,758,621
—
—
(870,939)
(15,419,421)
905,585
(1,548,579)
(3,666,079)
19,203
(907,458)
A-Class
65,497
64,499
C-Class
519,382
2,079,492
—
—
—
—
(474,115)
(22,093)
(2,294,754)
(248,686)
43,404
(184,187)
Consumer Products Fund
45,267
(215,262)
Investor Class
1,341,271
6,775,542
—
958
(1,626,611)
(6,553,085)
(285,340)
223,415
Advisor Class
A-Class
1,196,847
14,815
2,222,820
338,896
—
291
(1,148,439)
(2,273,734)
—
214
(67,688)
(275,390)
(52,873)
48,408
(50,623)
63,720
C-Class
133,173
1,127,781
—
424
(192,633)
(1,012,785)
(59,460)
115,420
Electronics Fund
Investor Class
Advisor Class
9,068,173
27,492,564
—
—
(7,691,396)
(28,787,246)
1,376,777
(1,294,682)
A-Class
1,487,268
8,313
3,370,529
230,127
—
—
—
—
(1,526,955)
(4,028)
(4,329,142)
(315,413)
(39,687)
4,285
(958,613)
(85,286)
C-Class
1,795,280
Energy Fund
1,432,565
—
—
(1,663,118)
(1,577,384)
132,162
(144,819)
Investor Class
5,022,370
25,515,728
—
66,835
(5,981,611)
(26,505,709)
(959,241)
(923,146)
Advisor Class
A-Class
1,046,414
173,791
3,589,380
298,376
—
—
11,438
(959,963)
2,501
(70,412)
(3,811,861)
(306,064)
86,451
(211,043)
103,379
(5,187)
C-Class
1,329,775
1,998,850
—
16,314
(1,103,525)
(2,312,312)
226,250
(297,148)
NOTES TO FINANCIAL STATEMENTS (continued)
Shares Purchased
Purchased Through Dividend
Reinvestment
Shares Redeemed
Net Shares Purchased (Redeemed)
Period Ended
Year Ended
Period Ended
Year Ended
Period Ended
Year Ended
Period Ended
Year Ended
September 30,
2007†
March 31,
2007
September 30,
2007†
March 31,
2007
September 30,
2007†
March 31,
2007
September 30,
2007†
March 31,
2007
Energy Services Fund
Investor Class
6,350,591
13,085,658
—
—
(5,688,540)
(14,439,520)
662,051
(1,353,862)
Advisor Class
A-Class
831,058
305,661
1,975,850
330,826
—
—
—
—
(758,107)
(187,240)
(2,588,904)
(347,240)
118,421
72,951
(613,054)
(16,414)
Financial Services Fund
C-Class
710,233
1,100,752
—
—
(624,342)
(1,195,397)
85,891
(94,645)
Investor Class
7,378,305
14,614,020
—
8,855
(7,590,501)
(13,954,971)
(212,196)
667,904
Advisor Class
A-Class
588,573
36,222
4,537,635
187,546
—
—
5,950
522
(1,575,127)
(68,385)
(3,851,859)
(440,755)
(986,554)
(32,163)
(252,687)
691,726
Health Care Fund
C-Class
818,520
1,079,733
—
1,532
(993,283)
(845,818)
(174,763)
235,447
Investor Class
6,583,796
23,189,843
—
—
(6,911,254)
(24,167,400)
(327,458)
(977,557)
Advisor Class
A-Class
1,328,512
26,974
6,222,030
285,028
—
—
—
—
(1,664,742)
(23,507)
(6,079,644)
(336,230)
142,386
C-Class
(389,375)
3,467 (104,347)
-->3,467
(104,347)
Internet Fund
878,081
1,660,348
—
—
(1,054,231)
(1,568,538)
(176,150)
91,810
Investor Class
1,506,681
4,778,281
—
—
(1,187,738)
(5,049,597)
318,943
(271,316)
Advisor Class
A-Class
401,073
1,689
1,108,128
9,522
—
—
—
—
(353,958)
(1,313)
(1,181,254)
(18,064)
47,115
376 (8,542)
-->376
(8,542)
(73,126)
Leisure Fund
C-Class
164,569
184,346
—
—
(155,844)
(217,483)
8,725
(33,137)
Investor Class
1,017,495
6,125,980
—
—
(1,165,649)
(6,375,693)
(148,154)
(249,713)
Advisor Class
A-Class
440,028
1,791
2,614,338
67,619
—
—
—
—
(516,074)
(60,154)
(2,643,145)
(5,752)
(76,046)
(58,363)
(28,807)
61,867
C-Class
99,800
Precious Metals Fund
262,991
—
—
(137,004)
(203,812)
(37,204)
59,179
Investor Class
8,069,282
24,146,645
—
—
(8,547,266)
(25,389,134)
(477,984)
(1,242,489)
Advisor Class
A-Class
415,583
68,222
1,526,274
220,918
—
—
—
(455,505)
—
(61,826)
(1,636,135)
(240,499)
(39,922)
(109,861)
6,396
(19,581)
C-Class
987,528
1,531,059
—
—
(1,017,889)
(1,555,378)
(30,361)
(24,319)
NOTES TO FINANCIAL STATEMENTS (continued)
Shares Purchased
Purchased Through Dividend
Reinvestment
Shares Redeemed
Net Shares Purchased (Redeemed)
September 30,
Period Ended
Year Ended
March 31,
September 30,
Period Ended
Year Ended
March 31,
September 30,
Period Ended
Year Ended
March 31,
September 30,
Period Ended
Year Ended
March 31,
2007†
2007
2007†
2007
2007†
2007
2007†
2007
Retailing Fund
Investor Class
Advisor Class
4,123,734
13,464,334
—
—
(4,048,038)
(13,749,986)
75,696
(285,652)
A-Class
512,485
3,168,275
2,864
30,721
—
—
—
—
(615,100)
(21,384)
(3,227,517)
(6,855)
(102,615)
(18,520)
(59,242)
C-Class
160,420
514,403
—
—
(166,198)
(443,684)
(5,778)
70,719
23,866
Technology Fund
Investor Class
Advisor Class
1,115,220
6,141,902
17,510,328
5,359,800
—
—
—
—
(1,076,207)
(5,157,985)
(18,085,957)
(6,027,744)
983,917
39,013
(575,629)
(667,944)
A-Class
102,744
C-Class
1,071,387
225,540
858,394
—
—
—
—
(800,441)
(51,732)
(255,522)
51,012
(965,780)
270,946 (107,386)
-->270,946
(107,386)
(29,982)
Telecommunications Fund
Investor Class
Advisor Class
1,205,513
7,070,916
9,062,999
—
2,258,488
—
1,064
6,065
(6,712,528)
(1,381,973)
(11,386,876)
(2,394,898)
(176,460)
358,388
(2,317,812)
(135,346)
A-Class
117,286
135,043
—
C-Class
903,979
603,253
—
928
62
(115,874)
(263,387)
1,412
(128,282)
Transportation Fund
(812,421)
(505,830)
91,558
98,351
Investor Class
3,451,848
11,483,581
—
—
(3,508,447)
(12,972,788)
(56,599)
(1,489,207)
Advisor Class
393,865
2,016,883
—
—
(393,549)
(2,204,069)
316
(187,186)
A-Class
C-Class
458,045
4,607
796,897
101,960
—
—
—
—
(523,434)
(10,612)
(818,548)
(197,768)
(65,389)
(6,005)
(21,651)
(95,808)
Utilities Fund
Investor Class
Advisor Class
4,829,063
17,336,125
—
15,755
(6,792,345)
(15,183,260)
(1,963,282)
2,168,620
A-Class
565,393
3,632,752
—
3,877
(857,114)
(3,306,739)
(291,721)
329,890
C-Class
692,214
65,022
1,000,197
452,318
—
—
2,150
(123,404)
3,617
(886,779)
(326,284)
(860,706)
(194,565)
(58,382)
128,184
143,108
†
Unaudited
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
8. Portfolio Securities Loaned
The Trust may lend its securities to approved brokers to earn additional income. Security lending income shown on the
statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with
the lending agent. Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the agent, and other approved
registered broker dealers act as the borrowers. The Trust receives cash collateral, valued at 100% of the value of the
securities on loan, which is initially held in a segregated account at U.S. Bank. As agent, U.S. Bank may, for investment
purposes, pool the Trust’s collateral in joint accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust’s securities lending agreement with U.S. Bank, cash collateral may be
invested by U.S. Bank in certain high quality, liquid investments. At September 30, 2007, the pooled cash collateral
investments consisted of mutual funds (92.02%) and repurchase agreements (7.98%). Collateral is maintained over the life
of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day;
any additional collateral required due to changes in security values is delivered to the Fund the next business day. Although
the collateral mitigates risk, the Trust could experience a delay in recovering its securities and a possible loss of income or
value if the borrower fails to return the securities. The Trust has the right under the securities lending agreement to recover
the securities from the borrower on demand.
The following represents a breakdown of the collateral, its rates, and maturities:
Shares
Market Value
MUTUAL FUND
92.02%
Mount Vernon Securities Lending Trust
1,166,989,146
$ 1,166,989,146
TOTAL
$ 1,166,989,146
Cost
Market Value
Repurchase Date
REPURCHASE AGREEMENT
7.98%
Rate
5.05%
Goldman Sachs Group, Inc.
$101,250,000
$
101,250,000
10/01/07
TOTAL
$
101,250,000
100.00%
GRAND TOTAL
$ 1,268,239,146
As of September 30, 2007, the collateral for the repurchase agreements in the joint account was as follows:
Range of Rates
Security Type
Current Par Value
Market Value
Maturity
0.00% – 6.51%
Federal Mortgage Backed Securities
$156,874,854
$
103,275,001
04/01/33 – 07/25/36
$
103,275,001
At September 30, 2007, the following Funds participated in securities lending and received cash collateral:
Fund
Cash Collateral
Value of Securities Loaned
Banking Fund
$
3,117,036
$
2,987,557
Basic Materials Fund
29,291,969
28,590,143
Biotechnology Fund
28,301,133
27,128,312
Consumer Products Fund
1,581,837
1,530,333
Electronics Fund
5,200,500
5,004,834
Energy Fund
18,206,065
17,562,231
Energy Services Fund
64,265,799
61,920,777
Financial Services Fund
3,517,538
3,392,021
Health Care Fund
5,229,658
5,075,351
Internet Fund
5,636,989
5,442,306
Leisure Fund
1,413,947
1,363,740
Precious Metals Fund
42,832,049
40,422,190
Retailing Fund
1,997,239
1,924,316
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)
Fund
Cash Collateral
Value of Securities Loaned
Technology Fund
$6,184,996
$6,004,173
Telecommunications Fund
7,480,463
7,136,027
Transportation Fund
3,791,347
3,668,624
Utilities Fund
4,002,359
3,818,282
9. New Accounting Pronouncement
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for
Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or
expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-
likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective
date. Recent SEC guidance allows implementing FIN 48 in fund net asset value calculations as late as a fund’s last net asset
value calculation in the first required financial statement reporting period. Management adopted FIN 48 on September 28,
2007. There was no material impact to the financial statements or disclosures thereto as a result of the adoption of this
pronouncement.
On September 15, 2006, the FASB released Statement of Financial Accounting Standard No. 157 (“FAS 157”) Fair Value
Measurement which provided enhanced guidance for using fair value to measure assets and liabilities. The standard
requires companies to provide expanded information about the assets and liabilities measured at fair value and the
potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair
value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications. Adoption
of FAS 157 is required for fiscal years beginning after November 15, 2007. The standard is not expected to materially
impact the Funds’ financial statements.
10. Acquisition of Rydex Investments and the Distributor
On June 28, 2007, Rydex NV, Inc. and Security Benefit Corporation (“Security Benefit”) entered into an agreement
pursuant to which Rydex Investments, together with several other Rydex entities, will be acquired by Security Benefit, a
financial services firm that provides a broad variety of financial programs to investors in the advisor, banking, education,
government, institutional, and qualified plan markets (the “Transaction”). Upon completion of the Transaction, Rydex
Investments and the Distributor will be wholly-owned subsidiaries of Security Benefit. While the Transaction will have no
material impact on the Funds or their shareholders, it will result in a change of control of Rydex Investments, which in turn
will cause the termination of the investment advisory agreement between Rydex Investments and the Funds.
As a result, a Special Meeting of Shareholders (the “Meeting”) of the Funds was held on October 4, 2007, for the purpose
of asking shareholders of record to approve a new investment advisory agreement between Rydex Investments and the
Funds under substantially the same terms as the previous investment advisory agreement (the “New Agreement”). If
approved by shareholders, the New Agreement will take effect upon the closing of the Transaction, which is currently
anticipated to occur in the 4th Quarter of 2007. Shareholders of the Funds will receive additional, and more detailed,
information about the Transaction as that information becomes available.
The Transaction will have no impact on the day-to-day operations of Rydex Investments, the fees payable to Rydex
Investments under the New Agreement, or the persons responsible for the management of the Funds. Thus, the
Transaction should have no impact on the Funds’ shareholders.
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79
Proxy Voting Information
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held
in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also
available from the EDGAR database on the SEC’s website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period
ended June 30 is available without charge, upon request, by calling 1-800-820-0888. This information is also available from
the EDGAR database on the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Schedules Information
The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on
Form N-Q, which is available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and
copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and continue to
serve after election until resignation. The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling 1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.
Rydex Investments Board Review and Approval of the Investment Advisory Agreement
The Investment Company Act of 1940 (the “1940 Act”) requires that the initial approval of, as well as the continuation of, a
fund’s investment advisory agreement be specifically approved by the vote of a majority of the trustees who are not parties
to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at
a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must
request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to
evaluate the terms of the advisory agreement. In addition, the Securities and Exchange Commission (the “SEC”) takes the
position that, as part of their fiduciary duties with respect to fund fees, fund boards are required to evaluate the material
factors applicable to a decision to approve an investment advisory agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees (the “Board”) generally calls and holds one
meeting each year that is dedicated to considering whether to renew the investment advisory agreements between Rydex
Series Funds (the “Trust”) and PADCO Advisors, Inc., which does business under the name Rydex Investments (“Rydex
Investments”), (the “Current Agreements”) with respect to existing funds in the Trust, including the funds discussed in this
Semi-Annual Report (each a “Fund” and collectively, the “Funds”), and to reviewing certain other agreements pursuant to
which Rydex Investments provides investment advisory services to certain other registered investment companies. In
preparation for the meeting, the Board requests and reviews a wide variety of materials provided by Rydex Investments,
including information about Rydex Investments’ affiliates, personnel and operations. The Board also receives data provided
by third parties. This information is in addition to the detailed information about the Funds that the Board reviews during
the course of each year, including information that relates to Fund operations and performance. The Board also receives a
memorandum from Fund counsel regarding the responsibilities of the Board for the approval of investment advisory
agreements. In addition, the Independent Trustees receive advice from independent counsel to the Independent Trustees,
meet in executive session outside the presence of fund management, and participate in question and answer sessions with
representatives of Rydex Investments.
At a Special Meeting of the Board held on July 10, 2007, and subsequently, during the Board’s regular quarterly meeting
held on August 27 and 28, 2007 (the “Annual Renewal Meeting” and together with the July 10, 2007 Meeting, the
“Meetings”), the Board considered and voted in favor of new investment advisory agreements for Rydex Series Funds
(each, a “New Agreement” and collectively, the “New Agreements”), which, subject to their approval by each Fund’s
shareholders, will enable Rydex Investments to continue to serve as investment adviser to each Fund after the completion
of the acquisition of Rydex Investments’ parent, Rydex Holdings, Inc. (the “Transaction”). During the Annual Renewal
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION (Unaudited) (continued)
Meeting, the Board also considered and approved the selection of Rydex Investments and the continuance of the Current
Agreements for an additional one-year period or until the closing of the Transaction, based on its review of qualitative and
quantitative information provided by Rydex Investments.
Board Considerations in Approving the New Agreements and the Continuation of the Current Agreements
In preparation for the Annual Renewal Meeting, the Board requested and received written materials from Rydex
Investments about: (a) the quality of Rydex Investments’ investment management and other services; (b) Rydex
Investments’ investment management personnel; (c) Rydex Investments’ operations and financial condition; (d) Rydex
Investments’ brokerage practices (including any soft dollar arrangements) and investment strategies; (e) the level of the
advisory fees that Rydex Investments charges the Funds compared with the fees it charges to comparable mutual funds or
accounts; (f) each Fund’s overall fees and operating expenses compared with similar mutual funds; (g) the level of Rydex
Investments’ profitability from its Fund-related operations; (h) Rydex Investments’ compliance systems; (i) Rydex
Investments’ policies on and compliance procedures for personal securities transactions; (j) Rydex Investments’ reputation,
expertise and resources in the financial markets; and (k) Fund performance compared with similar mutual funds. Certain of
these considerations are discussed in more detail below.
In its deliberations at the Annual Renewal Meeting, the Board did not identify any single piece of information that was all-
important or controlling. Based on the Board’s deliberations and its evaluation of the information referenced above and
described in more detail below, the Board, including all of the Independent Trustees, unanimously: (a) concluded that
terms of the Current Agreements and New Agreements were fair and reasonable; (b) concluded that Rydex Investments’
fees were reasonable in light of the services that Rydex Investments provides to the Funds; (c) agreed to renew each
Current Agreement for an additional one-year term; and (d) agreed to approve the New Agreements for an initial term of
two years.
In approving the New Agreements and the continuation of the Current Agreements at the Annual Renewal Meeting, the
Board, including the Independent Trustees advised by independent counsel, considered the factors discussed below.
Nature, Extent And Quality Of Services Provided By Rydex Investments
At the Annual Renewal Meeting, the Board reviewed the scope of services to be provided by Rydex Investments
under each Current Agreement and noted that there would be no significant differences between the scope of
services required to be provided by Rydex Investments for the past year and the scope of services required to be
provided by Rydex Investments for the upcoming year. In reviewing the scope of services provided to the Funds by
Rydex Investments, the Board reviewed and discussed Rydex Investments’ investment experience, noting that Rydex
Investments and its affiliates have committed significant resources over time to the support of the Funds. The Board
also considered Rydex Investments’ compliance program and its compliance record with respect to the Funds. In that
regard, the Board noted that Rydex Investments provides information regarding the portfolio management and
compliance to the Board on a periodic basis in connection with regularly scheduled meetings of the Board. In addition
to the above considerations, the Board reviewed and considered Rydex Investments’ investment processes and
strategies, and matters related to Rydex Investments’ portfolio transaction policies and procedures. With respect to
those Funds that invest in unaffiliated ETFs in reliance on exemptive orders pursuant to Section 12(d)(1), the Board
considered and determined that the advisory fees charged under the Current Agreements are based on services
provided that will be in addition to, rather than duplicative of, the services provides under the investment advisory
agreement of any ETF in which the Funds are invested. In particular, the Board recognized that Rydex Investments
must manage a Fund’s investment in an unaffiliated ETF in the same manner as other investments in the Fund’s
portfolio in order to ensure that the Fund achieves its investment objective. Thus, a Fund’s investment in an unaffiliated
ETF does not alleviate Rydex Investments’ duties and responsibilities as investment adviser to the Fund. The Board
also noted the substantial volume of portfolio trades and shareholder transaction activity, in general, processed by
Rydex Investments due to the unlimited exchange policy of the majority of the Funds. The Board further noted that
the Funds have consistently met their investment objectives since their respective inception dates. Based on this
review, the Board concluded that the nature, extent, and quality of services to be provided by Rydex Investments to
the Funds under the Current Agreements were appropriate and continued to support the Board’s original selection of
Rydex Investments as investment adviser to the Funds.
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81
OTHER INFORMATION (Unaudited) (continued)
Fund Expenses And Performance Of The Funds And Rydex Investments
At the Annual Renewal Meeting, the Board reviewed statistical information prepared by Rydex Investments regarding
the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total
expenses of each Fund in comparison with the same information for other funds registered under the 1940 Act
determined by Rydex Investments to comprise each Fund’s applicable peer group. Because few funds seek to provide
unlimited exchange privileges similar to those of the majority of the Funds, each Fund’s applicable peer group is
generally limited to the funds of two unaffiliated mutual fund families. In addition, the Board reviewed statistical
information prepared by Rydex Investments relating to the performance of each Fund, as well as each Fund’s ability to
successfully track its benchmark over time, and a comparison of each Fund’s performance to funds with similar
investment objectives for the same periods and to appropriate indices/benchmarks, in light of total return, yield and
market trends. The Board further noted that despite the unique nature of the Funds, the peer fund information
presented to the Board was meaningful because the peer funds’ investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either outperformed their peer funds or
performed in line with them over relevant periods. The Board also noted that the investment advisory fees for the
Funds were equivalent to those of their peers and that the overall expenses for the Funds were only slightly higher
than the total expenses of the peer funds, due in part to differing share classes and distribution fees. Based on this
review, the Board concluded that the investment advisory fees and expense levels and the historical performance of
the Funds, as managed by Rydex Investments, as compared to the investment advisory fees and expense levels and
performance of the peer funds, were satisfactory for the purposes of approving the continuance of the Current
Agreements.
Costs Of Services Provided To The Funds And Profits Realized By Rydex Investments And Its Affiliates
At the Annual Renewal Meeting, the Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Current Agreements for the last calendar year. Rydex
Investments also presented the Board with material discussing its methodology for determining the level of advisory
fees assessable to the Funds. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to
Rydex Investments. The Board also reviewed information regarding direct revenue received by Rydex Investments and
ancillary revenue received by Rydex Investments and/or its affiliates in connection with the services provided to the
Funds by Rydex Investments (as discussed below) and/or its affiliates. The Board also discussed Rydex Investments’
profit margin as reflected in Rydex Investments’ profitability analysis and reviewed information regarding economies of
scale (as discussed below). Based on this review, the Board concluded that the profits to be realized by Rydex
Investments and its affiliates under the Current Agreements and from other relationships between the Funds and
Rydex Investments and/or its affiliates, if any, were within the range the Board considered reasonable and appropriate.
Economies Of Scale
In connection with its review of the Funds’ profitability analysis at the Annual Renewal Meeting, the Board reviewed
information regarding economies of scale or other efficiencies that may result from increases in the Funds’ asset levels.
The Board noted that neither the Current Agreements nor the New Agreements for the Funds provided for any
breakpoints in the investment advisory fees as a result of increases in the asset levels of the Funds. The Board also
noted that though Rydex Investments’ assets under management were significant, the amount is spread among more
than 100 Funds. Further limiting the realization of economies of scale, is the ability of shareholders of many of the
Funds to engage in unlimited trading. The Board also reviewed and considered Rydex Investments’ historic profitability
as investment adviser to the Funds and determined that reductions in advisory fees or additions of breakpoints were
not warranted at this juncture. Based on this review, the Board, recognizing its responsibility to consider this issue at
least annually, determined that the economies of scale, if any, were de minimis.
Other Benefits To Rydex Investments And/Or Its Affiliates
At the Annual Renewal Meeting, in addition to evaluating the services provided by Rydex Investments, the Board also
considered the nature, extent, quality and cost of the administrative, distribution, and shareholder services performed
by Rydex Investments’ affiliates under separate agreements. The Board noted that Rydex Investments reports its use
of soft dollars to the Board on a quarterly basis, as well as any portfolio transactions on behalf of the Funds placed
through an affiliate of the Funds or Rydex Investments pursuant to Rule 17e-1 under the 1940 Act. Based on its review,
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION (Unaudited) (continued)
the Board concluded that the nature and quality of the services provided by Rydex Investments’ affiliates to each Trust
will benefit the Funds’ shareholders, and that any ancillary benefits would not be disadvantageous to the Funds’
shareholders, particularly in light of the Board’s view that the Funds’ shareholders benefit from investing in a fund that
is part of a large family of funds offering a variety of investment strategies and services.
Additional Considerations in Approving the New Agreements
On June 18, 2007, the Trustees met with representatives of Security Benefit and the management of Rydex Investments for
the purpose of learning more about Security Benefit and the proposed Transaction. Immediately following the
announcement that Rydex and Security Benefit entered into a purchase and sale agreement, the Trustees requested that
Rydex Investments provide the Board with additional information pertaining to the effect of the proposed change of
control on Rydex Investments’ personnel and operations and the terms of the New Agreements. Rydex Investments
presented its response to the Board’s request for additional information prior to and at a Special Meeting of the Boards of
Trustees held on July 10, 2007. Rydex Investments provided the Board with oral and written information to help the Board
evaluate the impact of the change of control on Rydex Investments, Rydex Investments’ ability to continue to provide
investment advisory services to the Funds under the New Agreements, and informed the Board that the contractual rate of
Rydex Investments’ fees will not change under the New Agreements. Rydex Investments also affirmed that the terms of the
New Agreements were the same in all material respects to those of the Current Agreements.
The Trustees deliberated on the approval of each New Agreement in light of the information provided. The Board
determined that the terms of the New Agreements set forth materially similar rights, duties and obligations on Rydex
Investments with regard to the services to be provided to the Trusts, and provided at least the same level of protection to
each Trust, the Funds and the Funds’ shareholders as the Current Agreements. The Board also noted that Rydex
Investments’ fee for its services to the Funds under the New Agreements would be the same as its fees under the Current
Agreements. The Board further noted that all considerations, determinations and findings related to the approval of the
continuation of the Current Agreements, as discussed above, were equally relevant to their approval of the New
Agreements, along with the additional factors relevant to the proposed change of control discussed below.
Nature, Extent And Quality Of Services Provided By The Advisor
The Board noted that Rydex Investments was taking appropriate steps to maintain its associates through the closing of
the Transaction by, in part, keeping them informed of the potential Transaction and awarding key personnel with
incentives to emphasize their value to Rydex Investments. As a result of these efforts, it is anticipated that the key
investment and management personnel servicing the Funds will remain with Rydex Investments following the
Transaction and that the investment and management services provided to the Funds by Rydex Investments will not
change. The Board also considered Rydex Investments’ and Security Benefit’s representations to the Board that
Security Benefit intends for Rydex Investments to continue to operate following the closing of the Transaction in much
the same manner as it operates today, and that the Transaction should have no impact on the day-to-day operations of
Rydex Investments, or the persons responsible for the management of the Funds. Based on this review, the Board
concluded that the range and quality of services provided by Rydex Investments to the Funds were appropriate and
were expected to continue under the New Agreements, and that there was no reason to expect the consummation of
the Transaction to have any adverse effect on the services provided by Rydex Investments and its affiliates or the
future performance of the Funds.
Fund Expenses
The Board also considered the fact that the fees payable to Rydex Investments and other expenses of the Funds
would be the same under the New Agreements as they are under the Current Agreements, and on this basis, the
Board concluded that these fees and expenses continued to be satisfactory for the purposes of approving the New
Agreements. More detailed information regarding the fees under each New Agreement is contained in the Proxy
Statement and accompanying materials dated September 6, 2007.
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83
OTHER INFORMATION (Unaudited) (concluded)
Costs Of Services Provided To The Funds And Profits Realized By Rydex Investments And Its Affiliates
Because Rydex Investments’ fees under the New Agreements are the same as those assessed under the Current
Agreements, the Board concluded that the profits to be realized by Rydex Investments and its respective affiliates
under the New Agreements and from other relationships between the Funds and Rydex Investments, if any, should
remain within the range the Board considered reasonable and appropriate. The Board further noted that, although it is
not possible to predict how the Transaction may affect Rydex Investments’ future profitability from its relationship with
the Funds, this matter would be given further consideration on an annual basis going forward.
Economies Of Scale
The Board further considered the potential economies of scale that may result from the Transaction, and concluded
that the extent of such economies of scale could not be predicted in advance of the closing of the Transaction.
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)
TRUSTEES AND OFFICERS
Length of Service
Name, Position and
As Trustee
Number of
––––––––––––––––––––––––––––––
Year of Birth
–––––––––––––––––––––––––––––––––––
(Year Began)
––––––––––––––––––––––––
Funds Overseen
Carl G. Verboncoeur*
Rydex Series Funds – 2004
141
Trustee, President (1952)
Rydex Variable Trust – 2004
Rydex Dynamic Funds – 2004
Rydex ETF Trust – 2004
Principal Occupations During Past Five Years: Chief Executive Officer and Treasurer of Rydex Specialized Products, LLC
(2005 to present); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present); Executive
Vice President of Rydex Investments (2000 to 2003)
Michael P. Byrum*
Rydex Series Funds – 2005
141
Trustee, Vice President
Rydex Variable Trust – 2005
(1970)
Rydex Dynamic Funds – 2005
Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Secretary of Rydex Specialized Products, LLC (2005 to present); Vice
President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President
of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of
Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating
Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)
INDEPENDENT TRUSTEES
Length of Service
Name, Position and
As Trustee
Number of
––––––––––––––––––––––––––––––
Year of Birth
–––––––––––––––––––––––––––––––––––
(Year Began)
––––––––––––––––––––––––
Funds Overseen
John O. Demaret
Rydex Series Funds – 1997
133
Trustee, Chairman of the Board
Rydex Variable Trust – 1998
(1940)
Rydex Dynamic Funds – 1999
Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour
Rydex Series Funds – 1993
133
Trustee (1945)
Rydex Variable Trust – 1998
Rydex Dynamic Funds – 1999
Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management
Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield
Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton
Rydex Series Funds – 1995
133
Trustee (1941)
Rydex Variable Trust – 1998
Rydex Dynamic Funds – 1999
Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Length of Service
Name, Position and
As Trustee
Number of
––––––––––––––––––––––––––––––
Year of Birth
–––––––––––––––––––––––––––––––––––
(Year Began)
––––––––––––––––––––––––
Funds Overseen
Werner E. Keller
Rydex Series Funds – 2005
133
Trustee (1940)
Rydex Variable Trust – 2005
Rydex Dynamic Funds – 2005
Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.
Rydex Series Funds – 2005
133
Trustee (1960)
Rydex Variable Trust – 2005
Rydex Dynamic Funds – 2005
Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville
Rydex Series Funds – 1997
133
Trustee (1942)
Rydex Variable Trust – 1998
Rydex Dynamic Funds – 1999
Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers
Rydex Series Funds – 1993
133
Trustee (1944)
Rydex Variable Trust – 1998
Rydex Dynamic Funds – 1999
Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine
EXECUTIVE OFFICERS
Name, Position and
Principal Occupations
––––––––––––––––––––––––––––––
Year of Birth
–––––––––––––––––––––––––––
During Past Five Years
Nick Bonos*
Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present);
Vice President and Treasurer (1963)
Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust,
Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice
President of Rydex Investments (2003 to present); Vice President and
Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice
President of Accounting of Rydex Investments (2000 to 2003)
Joanna M. Haigney*
Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and
Chief Compliance Officer and
Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds,
Secretary (1966)
Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary of
Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex
Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX
Fund (2003 to 2006)
Joseph Arruda*
Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic
Assistant Treasurer (1966)
Funds, Rydex ETF Trust (2006 to present); Vice President of Rydex Investments
(2004 to present); Director of Accounting of Rydex Investments (2003 to 2004);
Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003)
Paula Billos*
Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds,
Controller (1974)
Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex
Investments (2001 to present)
* Officers of the Fund are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this
person is affiliated with Rydex Investments.
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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