SEPTEMBER 30, 2007
RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
BENCHMARK FUNDS
(Formerly, Inverse Government Long Bond Fund)
NOVA FUND
INVERSE GOVERNMENT LONG BOND STRATEGY FUND
HIGH YIELD STRATEGY FUND
S&P 500 FUND
(Formerly, Inverse S&P 500 Fund)
INVERSE S&P 500 STRATEGY FUND
INVERSE HIGH YIELD STRATEGY FUND
(Formerly, Europe Advantage Fund)
OTC FUND
EUROPE 1.25x STRATEGY FUND
(Formerly, Inverse OTC Fund)
INVERSE OTC STRATEGY FUND
(Formerly, Japan Advantage Fund)
JAPAN 1.25x STRATEGY FUND
MID-CAP 1.5x STRATEGY FUND
(Formerly, Mid-Cap Advantage Fund)
SMALL-CAP VALUE FUND
(Formerly, Inverse Mid-Cap Fund)
INVERSE MID-CAP STRATEGY FUND
MID-CAP VALUE FUND
RUSSELL 2000® 1.5x STRATEGY FUND
LARGE-CAP VALUE FUND
(Formerly, Russell 2000® Advantage Fund)
SMALL-CAP GROWTH FUND
RUSSELL 2000® FUND
MID-CAP GROWTH FUND
INVERSE RUSSELL 2000® STRATEGY FUND
LARGE-CAP GROWTH FUND
(Formerly, Inverse Russell 2000® Fund)
U.S. GOVERNMENT MONEY MARKET FUND
(Formerly, Government Long Bond Advantage Fund)
GOVERNMENT LONG BOND 1.2x STRATEGY 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
ABOUT SHAREHOLDERS’ FUND EXPENSES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
STATEMENTS OF ASSETS AND LIABILITIES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88
STATEMENTS OF CHANGES IN NET ASSETS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
100
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
112
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
127
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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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 Reilly, CFA
Director of Portfolio Strategies
2
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)
Many of the Rydex Funds described in this report are benchmarked daily to leveraged or inverse
leveraged versions of published indices. To properly evaluate the performance of these funds, it is
essential to understand the effect of mathematical compounding on their respective returns.
Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line
with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire
period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem
to outperform its benchmark over longer periods.
An Example of Compounding
For example, consider a hypothetical fund that is designed to produce returns that correspond to 150%
of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a
6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value
(“NAV”) increases from $10.00 to $10.90 for a gain of 9.0%–in line with its benchmark.
On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls
9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the
two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into
account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the
fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table
below.
Index
Index
Fund
Fund
Level
Performance
Expectation
Fund NAV
Performance
Assessment
Start
100
$10.00
Day 1
106
6.0%
9.0%
$10.90
9.0%
In line
Day 2
99
-6.6%
-9.9%
$
9.82
-9.9%
In line
Cumulative
-1.0%
-1.5%
-1.8%
-0.3%
As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or
judgments about fund performance given only the returns of the unleveraged index.
In general, any change in direction in an index will produce compounding that seems to work against an
investor. Were the index to move in the same direction (either up or down) for two or more periods in a
row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly
beat its benchmark.
As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less
leverage will generally produce more results that are more in line with expectations. In addition, periods
of high volatility in an underlying index will also cause the effects of compounding to be more
pronounced, while lower volatility will produce a more muted effect.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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3
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
estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for
example, 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
values 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 examples 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.
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*
Table 1. Based on actual Fund return
Nova Fund
Advisor Class
1.76%
1,000.00
1,081.20
9.18
Investor Class
1.27%
$1,000.00
$1,084.10
$
6.64
A-Class
1.51%
1,000.00
1,082.60
7.88
C-Class
2.26%
1,000.00
1,078.20
11.77
S&P 500 Fund
C-Class
2.26%
1,000.00
A-Class
1.51%
1,000.00
1,074.30
7.85
H-Class
1.52%
1,000.00
1,074.00
7.90
1,070.30
11.73
Inverse S&P 500 Strategy Fund
Advisor Class
Investor Class
1.41%
1,000.00
953.80
1.90%
1,000.00
950.80
9.29
6.91
C-Class
2.40%
1,000.00
948.50
11.72
A-Class
1.66%
1,000.00
952.40
8.12
OTC Fund
Advisor Class
1.80%
1,000.00
1,178.50
9.83
Investor Class
1.30%
1,000.00
1,181.70
7.11
C-Class
2.30%
1,000.00
1,176.00
12.55
A-Class
1.56%
1,000.00
1,179.60
8.52
Inverse OTC Strategy Fund
Advisor Class
1.97%
1,000.00
870.80
9.24
Investor Class
1.48%
1,000.00
873.10
6.95
C-Class
2.47%
1,000.00
868.30
11.57
A-Class
1.72%
1,000.00
871.70
8.07
Mid-Cap 1.5x Strategy Fund
C-Class
2.41%
1,000.00
A-Class
1.66%
1,000.00
1,019.20
8.40
H-Class
1.67%
1,000.00
1,019.20
8.45
1,015.60
12.18
Inverse Mid-Cap Strategy Fund
C-Class
2.41%
1,000.00
980.80
11.97
A-Class
1.66%
1,000.00
984.00
8.26
Russell 2000® 1.5x Strategy Fund
H-Class
1.66%
1,000.00
984.00
8.26
C-Class
2.41%
A-Class
1.66%
1,000.00
995.70
8.30
H-Class
1.66%
1,000.00
996.00
8.31
1,000.00
992.10
12.04
Russell 2000® Fund
C-Class
2.26%
1,000.00
A-Class
1.52%
1,000.00
1,004.70
7.64
H-Class
1.51%
1,000.00
1,005.10
7.59
1,002.20
11.34
Inverse Russell 2000® Strategy Fund
C-Class
A-Class
1.66%
1,000.00
1,009.70
8.36
H-Class
1.66%
2.41%
1,000.00
1,005.90
12.12
Government Long Bond 1.2x Strategy Fund
1,000.00
1,009.70
8.36
Advisor Class
1.46%
Investor Class
0.97%
1,000.00
1,015.90
4.90
A-Class
1.21%
1,000.00
1,015.60
6.11
1,000.00
1,014.40
7.37
C-Class
Inverse Government Long Bond Strategy Fund
1.95%
1,000.00
1,010.90
9.83
Investor Class
3.34%
1,000.00
1,008.80
16.82
A-Class
3.78%
1,000.00
1,007.30
19.02
Advisor Class
3.93%
1,000.00
1,006.30
19.77
C-Class
4.34%
1,000.00
1,003.80
21.80
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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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*
High Yield Strategy Fund**
C-Class
A-Class
1.52%
$1,000.00
$1,014.00
$
7.00
H-Class
1.52%
1,000.00
1,013.60
7.00
2.18%
1,000.00
1,010.00
10.02
Inverse High Yield Strategy Fund**
A-Class
4.87%
1,000.00
1,003.60
22.32
H-Class
4.87%
1,000.00
1,003.60
22.32
C-Class
5.61%
1,000.00
1,000.20
25.67
Europe 1.25x Strategy Fund
A-Class
1.66%
1,000.00
1,138.00
8.90
H-Class
1.67%
1,000.00
1,137.90
8.95
C-Class
2.39%
1,000.00
1,134.00
12.79
Japan 1.25x Strategy Fund
C-Class
2.41%
1,000.00
954.30
11.81
A-Class
1.66%
1,000.00
958.20
8.15
Small-Cap Value Fund
H-Class
1.65%
1,000.00
958.30
8.10
C-Class
A-Class
1.52%
1,000.00
890.30
7.20
H-Class
1.51%
1,000.00
890.20
7.16
2.25%
1,000.00
887.00
10.64
Mid-Cap Value Fund
C-Class
2.26%
1,000.00
957.80
11.09
A-Class
1.52%
1,000.00
961.20
7.47
Large-Cap Value Fund
H-Class
1.51%
1,000.00
961.50
7.42
C-Class
A-Class
1.52%
1,000.00
982.70
7.55
H-Class
1.51%
1,000.00
982.40
7.50
2.25%
1,000.00
979.20
11.16
Small-Cap Growth Fund
C-Class
2.27%
1,000.00
1,037.30
11.59
A-Class
1.53%
1,000.00
1,040.80
7.83
Mid-Cap Growth Fund
H-Class
1.52%
1,000.00
1,041.10
7.78
C-Class
2.26%
1,000.00
1,046.30
11.59
A-Class
1.52%
1,000.00
1,049.80
7.81
Large-Cap Growth Fund
H-Class
1.52%
1,000.00
1,049.80
7.81
A-Class
1.52%
1,000.00
1,054.10
7.83
H-Class
1.52%
1,000.00
1,054.10
7.83
C-Class
2.27%
1,000.00
1,049.70
11.66
U.S. Government Money Market Fund
Investor Class
0.92%
1,000.00
1,021.40
4.66
A-Class
1.17%
1,000.00
1,020.20
5.93
Advisor Class
1.41%
1,000.00
1,018.90
7.14
C-Class
1.92%
1,000.00
1,016.40
9.71
6
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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*
Table 2. Based on hypothetical 5% return
Nova Fund
Advisor Class
1.76%
1,000.00
1,016.13
8.93
Investor Class
1.27%
$1,000.00
$1,018.62
$
6.45
A-Class
1.51%
1,000.00
1,017.40
7.67
S&P 500 Fund
C-Class
2.26%
1,000.00
1,013.60
11.47
C-Class
2.26%
1,000.00
A-Class
1.51%
1,000.00
1,017.40
7.67
H-Class
1.52%
1,000.00
1,017.35
7.72
1,013.60
11.47
Inverse S&P 500 Strategy Fund
Advisor Class
Investor Class
1.41%
1,000.00
1,017.91
1.90%
1,000.00
1,015.42
9.65
7.16
C-Class
2.40%
1,000.00
1,012.88
12.18
A-Class
1.66%
1,000.00
1,016.64
8.43
OTC Fund
Advisor Class
1.80%
1,000.00
1,015.93
9.14
Investor Class
1.30%
1,000.00
1,018.47
6.60
C-Class
2.30%
1,000.00
1,013.39
11.68
A-Class
1.56%
1,000.00
1,017.15
7.92
Inverse OTC Strategy Fund
Advisor Class
1.97%
1,000.00
1,015.07
10.00
Investor Class
1.48%
1,000.00
1,017.56
7.51
C-Class
2.47%
1,000.00
1,012.53
12.54
A-Class
1.72%
1,000.00
1,016.34
8.73
Mid-Cap 1.5x Strategy Fund
C-Class
2.41%
1,000.00
A-Class
1.66%
1,000.00
1,016.64
8.43
H-Class
1.67%
1,000.00
1,016.59
8.48
1,012.83
12.23
Inverse Mid-Cap Strategy Fund
C-Class
2.41%
1,000.00
1,012.83
12.23
A-Class
1.66%
1,000.00
1,016.64
8.43
Russell 2000® 1.5x Strategy Fund
H-Class
1.66%
1,000.00
1,016.64
8.43
C-Class
2.41%
A-Class
1.66%
1,000.00
1,016.64
8.43
H-Class
1.66%
1,000.00
1,016.64
8.43
1,000.00
1,012.83
12.23
Russell 2000® Fund
C-Class
2.26%
1,000.00
A-Class
1.52%
1,000.00
1,017.35
7.72
H-Class
1.51%
1,000.00
1,017.40
7.67
1,013.60
11.47
Inverse Russell 2000® Strategy Fund
C-Class
A-Class
1.66%
1,000.00
1,016.64
8.43
H-Class
1.66%
2.41%
1,000.00
1,012.83
12.23
Government Long Bond 1.2x Strategy Fund
1,000.00
1,016.64
8.43
Advisor Class
1.46%
Investor Class
0.97%
1,000.00
1,020.14
4.92
A-Class
1.21%
1,000.00
1,018.93
6.14
1,000.00
1,017.66
7.41
C-Class
Inverse Government Long Bond Strategy Fund
1.95%
1,000.00
1,015.17
9.90
Investor Class
3.34%
1,000.00
1,008.11
16.96
A-Class
3.78%
1,000.00
1,005.88
19.19
Advisor Class
3.93%
1,000.00
1,005.12
19.95
C-Class
4.34%
1,000.00
1,003.04
22.03
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
7
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)
Beginning
Ending
Expenses
Expense
Account Value
Account Value
Paid During
Ratio†
March 31, 2007
September 30, 2007
Period*
High Yield Strategy Fund**
A-Class
C-Class
2.18%
1,000.00
1,014.00
11.07
1.52%
$1,000.00
$1,017.35
$
7.72
Inverse High Yield Strategy Fund**
H-Class
1.52%
1,000.00
1,017.35
7.72
C-Class
5.61%
1,000.00
996.59
28.48
A-Class
4.87%
1,000.00
1,000.35
24.72
H-Class
4.87%
1,000.00
1,000.35
24.72
Europe 1.25x Strategy Fund
C-Class
A-Class
1.66%
1,000.00
1,016.64
8.43
H-Class
1.67%
1,000.00
1,016.59
8.48
2.39%
1,000.00
1,012.94
12.13
Japan 1.25x Strategy Fund
A-Class
1.66%
1,000.00
1,016.64
8.43
C-Class
H-Class
1.65%
1,000.00
1,016.69
8.38
2.41%
1,000.00
1,012.83
12.23
Small-Cap Value Fund
C-Class
2.25%
1,000.00
A-Class
1.52%
1,013.65
11.42
1,000.00
1,017.35
7.72
Mid-Cap Value Fund
H-Class
1.51%
1,000.00
1,017.40
7.67
C-Class
2.26%
1,000.00
1,013.60
11.47
A-Class
1.52%
1,000.00
1,017.35
7.72
Large-Cap Value Fund
H-Class
1.51%
1,000.00
1,017.40
7.67
C-Class
2.25%
1,000.00
1,013.65
11.42
A-Class
1.52%
1,000.00
1,017.35
7.72
Small-Cap Growth Fund
H-Class
1.51%
1,000.00
1,017.40
7.67
A-Class
1.53%
1,000.00
1,017.30
7.77
H-Class
1.52%
1,000.00
1,017.35
7.72
C-Class
2.27%
1,000.00
1,013.54
11.52
Mid-Cap Growth Fund
A-Class
1.52%
1,000.00
1,017.35
7.72
H-Class
1.52%
1,000.00
1,017.35
7.72
C-Class
2.26%
1,000.00
1,013.60
11.47
Large-Cap Growth Fund
A-Class
1.52%
1,000.00
1,017.35
7.72
H-Class
1.52%
1,000.00
1,017.35
7.72
C-Class
2.27%
1,000.00
1,013.54
11.52
U.S. Government Money Market Fund
Advisor Class
1.41%
1,000.00
1,017.91
Investor Class
0.92%
1,000.00
1,020.40
7.16
4.67
C-Class
1.92%
1,000.00
1,015.32
9.75
A-Class
1.17%
1,000.00
1,019.13
5.94
number of days in the most recent fiscal half-year, then divided by 365.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by the
** Since the commencement of operations: April 16, 2007.
interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 1.94%, 2.04%, 2.14% and 1.95%
† This ratio represents annualized Total Expenses, which include interest expense from securities sold short and swap expense. Excluding short
classes of the Inverse High Yield Strategy Fund would be reduced by 3.35%.
lower for the Investor Class, Advisor Class, A-Class and C-Class, respectively. Excluding swap expense, the operating expense ratio for all
8
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOVA FUND
OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s
current benchmark is 150% of the performance of the S&P 500® Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
150%
July 12, 1993
Advisor Class
October 15, 1998
Equity Index Swap Agreements
A-Class
March 31, 2004
C-Class
March 14, 2001
Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.
3.1%
100%
Futures Contracts
Consumer Discretionary
Consumer Staples
Consumer Staples
Energy
General Electric Co.
2.3%
AT&T, Inc.
Consumer Discretionary
Industrials
1.6%
50%
Industrials
Health Care
Energy
Chevron Corp.
1.3%
Health Care
Cisco Systems, Inc.
1.3%
Information Technology
Information Technology
Microsoft Corp.
1.2%
Financials
Financials
Citigroup, Inc.
1.2%
Other
Other
Procter & Gamble Co.
1.2%
S&P 500 Index
0%
Bank of America Corp.
1.1%
Nova Fund
International Business Machines Corp.
1.1%
Top Ten Total
15.4%
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
“Ten Largest Holdings” exclude any temporary
any temporary cash investments.
cash or derivative investments.
S&P 500 FUND
OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s
current benchmark is the S&P 500 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
Equity Index Swap Agreements
A-Class
May 31, 2006
Consumer Staples
C-Class
May 31, 2006
H-Class
May 31, 2006
Ten Largest Holdings (% of Total Net Assets)
Consumer Discretionary
75%
Energy
General Electric Co.
Futures Contracts
Exxon Mobil Corp.
1.5%
1.2%
Industrials
Health Care
50%
AT&T, Inc.
0.8%
Microsoft Corp.
0.7%
Energy
Information Technology
Citigroup, Inc.
0.7%
Information Technology
Health Care
Bank of America Corp.
0.6%
Financials
25%
Financials
Procter & Gamble Co.
0.6%
Cisco Systems, Inc.
0.6%
Other
Other
Chevron Corp.
0.6%
S&P 500 Fund
S&P 500 Index
0%
Johnson & Johnson, Inc.
0.6%
Top Ten Total
7.9%
“Ten Largest Holdings” exclude any temporary
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
cash or derivative investments.
any temporary cash investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
9
FUND PROFILES (Unaudited) (continued)
INVERSE S&P 500 STRATEGY FUND
OBJECTIVE: To provide investment results that will inversely correlate to the performance of the S&P 500 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
Investor Class
January 7, 1994
Consumer Staples
Advisor Class
August 5, 1998
Consumer Discretionary
80%
Energy
A-Class
March 31, 2004
60%
Industrials
C-Class
March 15, 2001
40%
Information Technology
Health Care
20%
Financials
The Fund invests principally in derivative investments
such as equity index swap agreements, futures
0%
Futures Contracts
Other
contracts, and options on index futures.
-20%
Short Sales
-40%
-60%
Equity Index Swap Agreements
Short Sales
-80%
-100%
Inverse S&P 500
S&P 500 Index
Strategy Fund
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
OTC FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for over-the-counter securities. The Fund’s current
benchmark is the Nasdaq 100 Index® .
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
Investor Class
February 14, 1994
Equity Index Swap Agreements
100%
Health Care
Advisor Class
September 22, 1998
Futures Contracts
A-Class
March 31, 2004
Health Care
Consumer Discretionary
C-Class
March 26, 2001
Consumer Discretionary
75%
Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.
9.2%
50%
Microsoft Corp.
5.0%
Qualcomm, Inc.
4.0%
Information Technology
Information Technology
Cisco Systems, Inc.
3.9%
Google, Inc. — Class A
3.6%
25%
Research In Motion Ltd.
2.7%
Oracle Corp.
2.3%
eBay, Inc.
2.3%
Other
Other
0%
Comcast Corp. — Class A
2.1%
OTC Fund
Nasdaq 100 Index
Gilead Sciences, Inc.
1.9%
Top Ten Total
37.0%
“Ten Largest Holdings” exclude any temporary
cash or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
10
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
INVERSE OTC STRATEGY FUND
OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current
benchmark is the inverse of the performance of the Nasdaq 100 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
Investor Class
September 3, 1998
Health Care
Advisor Class
August 1, 2003
80%
Consumer Discretionary
A-Class
March 31, 2004
60%
C-Class
March 7, 2001
40%
The Fund invests principally in derivative investments
Information Technology
Futures Contracts Short Sales
Other
20%
such as equity index swap agreements, futures
0%
contracts, and options on index futures.
-20%
-40%
-60%
Short Sales
Equity Index Swap Agreements
-80%
-100%
Inverse OTC Strategy Fund
Nasdaq 100 Index
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
MID-CAP 1.5x STRATEGY FUND
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for mid-cap securities.
The Fund’s current benchmark is the S&P MidCap 400® Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
A-Class
March 31, 2004
150%
Equity Index
C-Class
August 20, 2001
Swap Agreements
H-Class
August 16, 2001
Ten Largest Holdings (% of Total Net Assets)
100%
Noble Energy, Inc.
0.6%
Futures Contracts
Utilities
Materials
DENTSPLY International, Inc.
0.5%
Energy
Cameron International Corp.
0.5%
Health Care
Western Digital Corp.
0.5%
Consumer Discretionary
Jacobs Engineering Group, Inc.
0.4%
50%
Health Care
Industrials
Energy
Lam Research Corp.
0.4%
Industrials
Consumer Discretionary
Health Net, Inc.
0.4%
Information Technology
Information Technology
Telephone & Data Systems, Inc.
0.4%
Other
0.4%
Financials
Other
Financials
Pride International, Inc.
0.4%
Grant Prideco, Inc.
0%
Mid-Cap 1.5x Strategy Fund
S&P MidCap 400 Index
Top Ten Total
4.5%
“Ten Largest Holdings” exclude any temporary
cash or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
11
FUND PROFILES (Unaudited) (continued)
INVERSE MID-CAP STRATEGY FUND
OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current
benchmark is the inverse of the performance of the S&P MidCap 400 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
March 31, 2004
Materials
C-Class
Utilities
February 20, 2004
Health Care
80%
Energy
H-Class
February 20, 2004
The Fund invests principally in derivative investments
60%
Consumer Discretionary
Industrials
Information Technology
40%
such as equity index swap agreements, futures
Futures Contracts Short Sales
Other
Financials
20%
contracts, and options on index futures.
0%
-20%
-40%
-60%
Agreements Short Sales
Equity Index Swap
-80%
Inverse Mid-Cap
S&P MidCap 400 Index
-100%
Strategy Fund
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
RUSSELL 2000® 1.5x STRATEGY FUND
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for small-cap securities.
The Fund’s current benchmark is the Russell 2000® Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
A-Class
March 31, 2004
150%
C-Class
January 23, 2001
H-Class
November 1, 2000
Swap Agreements
Equity Index
Ten Largest Holdings (% of Total Net Assets)
Exterran Holdings, Inc.
100%
Energy
0.4%
Health Care
CF Industries Holdings, Inc.
0.3%
Futures Contracts
Industrials
Flir Systems, Inc.
0.3%
Chipotle Mexican Grill, Inc.
Health Care
Consumer Discretionary
0.3%
Priceline.com, Inc.
Industrials
50%
0.3%
Consumer Discretionary
Information Technology
Hologic, Inc.
0.2%
Information Technology
Sotheby’s Holdings, Inc. — Class A
0.2%
Financials
Financials
Time Warner Telecom, Inc. — Class A
0.2%
ON Semiconductor Corp.
0.2%
0%
Tempur-Pedic International, Inc.
0.2%
Other
Other
Russell 2000® 1.5x
Russell 2000 Index
Strategy Fund
Top Ten Total
2.6%
“Ten Largest Holdings” exclude any temporary
cash or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
12
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
RUSSELL 2000® FUND
OBJECTIVE:
To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s
current benchmark is the Russell 2000 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
May 31, 2006
Energy
C-Class
May 31, 2006
Swap Agreements
Equity Index
Health Care
H-Class
May 31, 2006
Industrials
80%
Ten Largest Holdings (% of Total Net Assets)
Futures Contracts
Exterran Holdings, Inc.
0.3%
60%
0.2%
Consumer Discretionary
CF Industries Holdings, Inc.
0.3%
Flir Systems, Inc.
Chipotle Mexican Grill, Inc.
Health Care
Industrials
Information Technology
0.2%
Consumer Discretionary
40%
Priceline.com, Inc.
0.2%
Information Technology
Time Warner Telecom, Inc. — Class A
0.2%
20%
Financials
Hologic, Inc.
0.2%
Financials
Sotheby’s Holdings, Inc. — Class A
0.2%
Other
Other
ON Semiconductor Corp.
0.2%
0%
Alexandria Real Estate Equities, Inc.
0.2%
Russell 2000® Fund
Russell 2000 Index
Top Ten Total
2.2%
“Ten Largest Holdings” exclude any temporary
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
cash or derivative investments.
any temporary cash investments.
INVERSE RUSSELL 2000® STRATEGY FUND
OBJECTIVE:
To provide investment results that will match the performance of a specific benchmark. The Fund’s current
benchmark is the inverse of the performance of the Russell 2000 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
Energy
A-Class
March 31, 2004
Health Care
C-Class
February 20, 2004
80%
Industrials
H-Class
February 20, 2004
The Fund invests principally in derivative investments
60%
Consumer Discretionary
Information Technology
40%
Financials
such as equity index swap agreements, futures
20%
contracts, and options on index futures.
0%
Other
-20%
Futures Contracts Short Sales
-40%
Agreements Short Sales
-60%
Equity Index Swap
-80%
Inverse Russell 2000®
Russell 2000 Index
-100%
Strategy Fund
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
13
FUND PROFILES (Unaudited) (continued)
GOVERNMENT LONG BOND 1.2x STRATEGY FUND
OBJECTIVE:
To provide investment results that correspond to a benchmark for U.S. Government securities. The Fund’s current
benchmark is 120% of the price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the
longest maturity, which is currently 30 years.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
120%
Investor Class
January 3, 1994
Advisor Class
August 1, 2003
100%
Futures Contracts
A-Class
March 31, 2004
C-Class
May 2, 2001
80%
The Fund invests principally in U.S. Government
securities and in derivative investments such as
60%
futures and options contracts.
U.S. Treasury Obligations
40%
20%
Government Long Bond 1.2x Strategy Fund
0%
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
INVERSE GOVERNMENT LONG BOND STRATEGY FUND
OBJECTIVE:
To provide total returns that will inversely correlate to the price movements of a benchmark for U.S. Treasury
price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is
debt instruments or futures contracts on a specified debt instrument. The Fund’s current benchmark is the inverse of the daily
currently 30 years.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
20%
Investor Class
March 3, 1995
Advisor Class
August 1, 2003
0%
U.S. Treasury Obligations Short Sales
A-Class
March 31, 2004
-20%
C-Class
March 28, 2001
-40%
The Fund invests principally in derivative investments
Short Sales
Futures Contracts
such as futures contracts and options on index
-60%
futures.
-80%
-100%
Inverse Government Long Bond Strategy Fund
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
14
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
HIGH YIELD STRATEGY FUND
OBJECTIVE:
Seeks to provide investment results that correlate to the performance of the high yield bond market.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
April 16, 2007
CAA Rated Bonds
C-Class
April 16, 2007
H-Class
April 16, 2007
75%
The Fund invests principally in derivative investments
BA Rated Bonds
such as high yield credit default swap agreements
and futures contracts.
50%
Credit Default Swap Agreements
High Yield
Protection Sold
B Rated Bonds
25%
0%
Other
High Yield Strategy Fund
Lehman Brothers U.S.
Corporate High Yield Index
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
INVERSE HIGH YIELD STRATEGY FUND
OBJECTIVE:
Seeks to provide investment results that inversely correlate to the performance of the high yield bond market.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
H-Class
April 16, 2007
CAA Rated Bonds
A-Class
April 16, 2007
80%
C-Class
April 16, 2007
The Fund invests principally in derivative investments
60%
BA Rated Bonds
40%
such as high yield credit default swap agreements
20%
and futures contracts.
B Rated Bonds
0%
Other
-20%
-40%
High Yield
-60%
Agreement Protection
Credit Default Swap
Purchased
-80%
-100%
Inverse High Yield
Lehman Brothers U.S.
Strategy Fund
Corporate High Yield Index
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
15
FUND PROFILES (Unaudited) (continued)
EUROPE 1.25x STRATEGY FUND
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current
benchmark is the Dow Jones STOXX 50 IndexSM.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
A-Class
March 31, 2004
Futures
125%
C-Class
May 10, 2001
H-Class
May 8, 2000
Contracts
100%
Equity Index
Basic Materials
Ten Largest Holdings (% of Total Net Assets)
Swap Agreements
Telecommunication Services
HSBC Holdings PLC — SP ADR
3.3%
Total SA — SP ADR
75%
Energy
BP PLC — SP ADR
2.8%
2.6%
Telecommunication Services
Consumer, Non-Cyclical
50%
GlaxoSmithKline PLC — SP ADR
2.6%
Health Care
Vodafone Group PLC — SP ADR
2.5%
Energy
Novartis AG — SP ADR
2.3%
25%
Financials
Royal Dutch Shell PLC — SP ADR
2.2%
Telefonica SA — SP ADR
2.1%
Financials
Nokia Oyj — SP ADR
1.8%
0%
Banco Santander Central
Other
Other
Europe 1.25x
Dow Jones STOXX 50 Index
Hispano SA — SP ADR
1.8%
Strategy Fund
Top Ten Total
24.0%
“Ten Largest Holdings” excludes any temporary
cash or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
JAPAN 1.25x STRATEGY FUND
OBJECTIVE:
To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current
benchmark is the Topix 100 Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
125%
A-Class
March 31, 2004
C-Class
March 1, 2002
H-Class
May 8, 2000
100%
Technology
Communications
The Fund invests principally in derivative investments
Basic Materials
such as equity index swap agreements, futures
75%
Consumer, Non-Cyclical
Equity Index
contracts, and options on index futures.
Swap Agreements
Industrials
Consumer, Cyclical
50%
Financials
25%
0%
Futures Contracts
Other
Japan 1.25x Strategy Fund
Topix 100 Index
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
16
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
SMALL-CAP VALUE FUND
OBJECTIVE:
To provide investment results that match the performance of a benchmark for small-cap value securities. The
Fund’s current benchmark is the S&P SmallCap 600/Citigroup Pure Value Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
A-Class
September 1, 2004
100%
Health Care
Health Care
C-Class
February 20, 2004
Consumer Staples
Consumer Staples
H-Class
February 20, 2004
Ten Largest Holdings (% of Total Net Assets)
Utilities
Utilities
75%
Information Technology
Nash Finch Co.
2.4%
Information Technology
Materials
Materials
Libbey, Inc.
2.3%
50%
Ryerson, Inc.
1.9%
Industrials
Industrials
Central Vermont Public Service Corp.
1.9%
Penford Corp.
1.5%
25%
MIVA, Inc.
1.4%
Spherion Corp.
1.4%
Financials
Financials
Consumer Discretionary
Consumer Discretionary
C&D Technologies, Inc.
1.4%
Standard Register Co.
1.3%
0%
Superior Industries International, Inc.
1.3%
Other
Small-Cap Value Fund
S&P SmallCap 600/Citigroup
Pure Value Index
Top Ten Total
16.8%
“Ten Largest Holdings” exclude any temporary cash
or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
MID-CAP VALUE FUND
OBJECTIVE:
To provide investment results that match the performance of a benchmark for mid-cap value securities. The
Fund’s current benchmark is the S&P MidCap 400/Citigroup Pure Value Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
September 1, 2004
Consumer Staples
Consumer Staples
C-Class
February 20, 2004
Information Technology
Information Technology
H-Class
February 20, 2004
75%
Industrials
Industrials
Ten Largest Holdings (% of Total Net Assets)
Lyondell Chemical Co.
3.5%
Avis Budget Group, Inc.
2.5%
Materials
Materials
50%
Financials
Financials
Lear Corp.
2.3%
Avnet, Inc.
2.0%
Olin Corp.
2.0%
Consumer Discretionary
Consumer Discretionary
Energy East Corp.
1.9%
25%
Universal Corp.
1.7%
Utilities
Utilities
Modine Manufacturing Co.
1.7%
Other
Black Hills Corp.
1.6%
0%
Timken Co.
1.6%
Mid-Cap Value Fund
S&P MidCap 400/Citigroup
Top Ten Total
20.8%
Pure Value Index
“Ten Largest Holdings” exclude any temporary cash
or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
17
FUND PROFILES (Unaudited) (continued)
LARGE-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a benchmark for large-cap value securities. The
Fund’s current benchmark is the S&P 500/Citigroup Pure Value Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
September 1, 2004
Industrials
Industrials
C-Class
February 20, 2004
Consumer Staples
Consumer Staples
H-Class
February 20, 2004
75%
Materials
Materials
Ten Largest Holdings (% of Total Net Assets)
Telecommunication Services
Telecommunication Services
Ford Motor Co.
2.7%
Utilities
Utilities
Embarq Corp.
1.9%
Fannie Mae
50%
1.9%
Integrys Energy Group, Inc.
1.7%
Consumer Discretionary
Consumer Discretionary
General Motors Corp.
1.6%
SUPERVALU, Inc.
1.5%
Financials
Financials
25%
Verizon Communications, Inc.
1.3%
Cummins, Inc.
1.3%
Other
ConocoPhillips
1.3%
0%
DTE Energy Co.
1.3%
Other
Large-Cap Value Fund
S&P 500/Citigroup
Pure Value Index
Top Ten Total
16.5%
“Ten Largest Holdings” exclude any temporary cash
or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
SMALL-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a benchmark for small-cap growth securities. The
Fund’s current benchmark is the S&P SmallCap 600/Citigroup Pure Growth Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
September 1, 2004
H-Class
Energy
Energy
C-Class
February 20, 2004
Industrials
Industrials
February 20, 2004
75%
Financials
Financials
Ten Largest Holdings (% of Total Net Assets)
Flir Systems, Inc.
2.0%
Health Care
Health Care
Bankrate, Inc.
1.4%
Itron, Inc.
1.4%
50%
Information Technology
j2 Global Communications, Inc.
1.4%
Information Technology
optionsXpress Holdings, Inc.
1.3%
Possis Medical, Inc.
1.3%
25%
Integra LifeSciences Holdings Corp.
1.3%
Consumer Discretionary
Consumer Discretionary
EPIQ Systems, Inc.
1.2%
Ceradyne, Inc.
1.2%
0%
Other
Other
PetMed Express, Inc.
1.2%
Small-Cap Growth Fund
S&P SmallCap 600/Citigroup
Top Ten Total
13.7%
“Ten Largest Holdings” exclude any temporary
Pure Growth Index
cash or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
18
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (Unaudited) (continued)
MID-CAP GROWTH FUND
OBJECTIVE:
To provide investment results that match the performance of a benchmark for mid-cap growth securities. The
Fund’s current benchmark is the S&P MidCap 400/Citigroup Pure Growth Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
A-Class
September 1, 2004
100%
Financials
Financials
C-Class
February 20, 2004
Energy
Energy
H-Class
February 20, 2004
Industrials
Industrials
Ten Largest Holdings (% of Total Net Assets)
75%
GameStop Corp. — Class A
2.1%
Cytyc Corp.
1.9%
Information Technology
Information Technology
Health Care
Health Care
ITT Educational Services, Inc.
1.7%
50%
Gen-Probe, Inc.
1.7%
Energizer Holdings, Inc.
1.6%
Corinthian Colleges, Inc.
1.5%
25%
Consumer Discretionary
Consumer Discretionary
Strayer Education, Inc.
1.5%
DST Systems, Inc.
1.5%
Hansen Natural Corp.
1.5%
0%
Western Digital Corp.
1.5%
Other
Other
Mid-Cap Growth Fund
S&P MidCap 400/Citigroup
Pure Growth Index
Top Ten Total
16.5%
“Ten Largest Holdings” exclude any temporary cash
or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
LARGE-CAP GROWTH FUND
OBJECTIVE:
To provide investment results that match the performance of a benchmark for large-cap growth securities.
The Fund’s current benchmark is the S&P 500/Citigroup Pure Growth Index.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
A-Class
September 1, 2004
Financials
Industrials
Industrials
C-Class
February 20, 2004
Financials
H-Class
February 20, 2004
Ten Largest Holdings (% of Total Net Assets)
Consumer Staples
Consumer Staples
75%
Energy
Amazon.com, Inc.
2.8%
Energy
1.6%
Apollo Group, Inc. — Class A
1.5%
Information Technology
Information Technology
Express Scripts, Inc.
50%
XTO Energy, Inc.
1.5%
Consumer Discretionary
Consumer Discretionary
Hospira, Inc.
1.4%
25%
Google, Inc. — Class A
1.3%
Coventry Health Care, Inc.
1.3%
Health Care
Health Care
Coach, Inc.
1.3%
Other
Gilead Sciences, Inc.
Other
1.2%
Large-Cap Growth Fund
S&P 500/Citigroup
0%
Apache Corp.
1.2%
Top Ten Total
Pure Growth Index
15.1%
“Ten Largest Holdings” exclude any temporary cash
or derivative investments.
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
19
FUND PROFILES (Unaudited) (concluded)
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE:
To provide security of principal, high current income and liquidity by investing in securities issued by the U.S.
Government, its agencies or instrumentalities.
Holdings Diversification (Market Exposure as % of Net Assets)
Inception Dates:
100%
Investor Class
December 1, 1993
Federal Home Loan Bank—FAB
Advisor Class
April 1, 1998
A-Class
Federal Farm Credit Bank—FADN
March 31, 2004
80%
C-Class
October 19, 2000
Farmer Mac—FADN
Fannie Mae—FADN
The Fund invests principally in U.S. Government
60%
securities.
Freddie Mac—FADN
40%
20%
Federal Home Loan Bank—FADN
Repurchase Agreements
0%
U.S. Government Money Market Fund
FAB — Federal Agency Bonds
FADN — Federal Agency Discount Notes
20
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
NOVA FUND
MARKET
VALUE
VALUE
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 76.4%
Discover Financial Services*
2,620
$
54,496
AFLAC, Inc.
340
19,394
FINANCIALS 14.3%
Citigroup, Inc.
51,500
$
2,403,505
Total Financials
29,223,601
INFORMATION TECHNOLOGY 11.7%
Bank of America Corp.
45,440
2,284,269
Cisco Systems, Inc.*
79,900
2,645,489
JPMorgan Chase & Co.
46,270
2,120,091
Microsoft Corp.
85,690
2,524,427
American International Group,
Inc.
25,370
1,716,280
International Business Machines
Corp.†
18,510
2,180,478
Wells Fargo & Co.
47,830
1,703,705
Wachovia Corp.†
28,480
1,428,272
Hewlett-Packard Co.
36,750
1,829,783
Intel Corp.
54,770
1,416,352
Morgan Stanley†
17,050
1,074,150
Oracle Corp.*
59,890
1,296,619
Prudential Financial, Inc.
8,850
863,583
Travelers Cos, Inc.
13,800
Apple, Inc.*
7,750
1,189,935
694,692
Google, Inc. — Class A*
1,950
1,106,177
Goldman Sachs Group, Inc.
3,159
684,682
Bank of New York Mellon Corp.
15,200
EMC Corp*
41,200
856,960
670,928
eBay, Inc.*†
21,260
829,565
Hartford Financial Services Group,
Applied Materials, Inc.
29,660
613,962
Inc.†
7,180
664,509
Xerox Corp.*
29,460
510,836
SunTrust Banks, Inc.
8,020
606,873
Capital One Financial Corp.
8,940
593,884
Qualcomm, Inc.
11,650
492,329
Loews Corp.
12,010
580,684
Computer Sciences Corp.*
7,990
446,641
Tyco Electronics Ltd.
12,470
441,812
Allstate Corp.
9,970
570,184
BMC Software, Inc.*
PNC Financial Services Group,
13,630
425,665
Fiserv, Inc.*
8,350
Inc.†
8,180
557,058
424,681
Electronic Data Systems Corp.
19,320
421,949
Franklin Resources, Inc.†
4,330
552,075
Dell, Inc.*
15,240
420,624
Lincoln National Corp.
8,360
551,509
ACE Ltd.
9,090
KLA-Tencor Corp.†
7,250
404,405
550,581
Regions Financial Corp.†
Avaya, Inc.*
23,640
400,934
18,100
533,588
American Express Co.†
8,830
524,237
LSI Logic Corp.*
49,870
370,035
Genworth Financial, Inc. —
Convergys Corp.*
20,840
361,782
Class A
16,980
521,795
Novellus Systems, Inc.*
12,980
353,835
Fidelity National Information
Bear Stearns Cos., Inc.
3,990
490,012
Services, Inc.
Merrill Lynch & Co., Inc.
6,040
430,531
7,900
350,523
Legg Mason, Inc.
5,020
Tellabs, Inc.*
34,670
330,058
423,136
Fannie Mae
6,770
411,684
Compuware Corp.*
38,250
306,765
Teradyne, Inc.*
XL Capital Ltd.†
5,130
406,296
21,640
298,632
Texas Instruments, Inc.
7,620
278,816
M&T Bank Corp.
3,850
398,283
Assurant, Inc.
7,430
397,505
Motorola, Inc.
9,190
170,291
Corning, Inc.
5,660
139,519
American Capital Strategies,
Ltd.†
9,100
388,843
Yahoo!, Inc.*†
1,580
42,407
ProLogis
Automatic Data Processing, Inc.
190
8,727
5,780
383,503
Torchmark Corp.
6,030
375,790
Total Information Technology
23,891,013
SAFECO Corp.†
5,600
342,832
INDUSTRIALS 9.5%
Janus Capital Group, Inc.†
11,930
337,380
General Electric Co.
111,510
4,616,514
U.S. Bancorp†
10,120
329,204
Caterpillar, Inc.†
11,250
882,337
E*Trade Financial Corp.*†
22,850
298,421
Honeywell International, Inc.†
13,950
829,606
Ambac Financial Group, Inc.†
4,110
258,560
Lockheed Martin Corp.
7,300
791,977
MetLife, Inc.†
3,700
258,001
Emerson Electric Co.
14,390
765,836
MGIC Investment Corp.
7,200
232,632
General Dynamics Corp.
8,730
737,423
Zions Bancorporation
3,190
219,057
Raytheon Co.†
10,580
675,216
Freddie Mac
2,860
168,769
United Parcel Service, Inc. —
Lehman Brothers Holdings,
Class B†
8,550
642,105
Inc.†
1,210
74,693
Union Pacific Corp.
5,670
641,050
Washington Mutual, Inc.†
2,080
73,445
Burlington Northern Santa Fe
Corp.†
7,790
632,314
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
21
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
NOVA FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Northrop Grumman Corp.
7,990
$
623,220
CIGNA Corp.
9,960
$
530,768
Illinois Tool Works, Inc.
10,290
613,696
Zimmer Holdings, Inc.*
6,500
526,435
Boeing Co.
5,740
602,643
Humana, Inc.*
7,070
494,052
United Technologies Corp.
7,420
597,162
Coventry Health Care, Inc.*
7,650
475,907
Norfolk Southern Corp.
10,670
553,880
Medtronic, Inc.†
7,720
435,485
Danaher Corp.
6,420
530,998
Wyeth
9,630
429,017
Eaton Corp.
5,150
510,056
Laboratory Corporation of
Parker Hannifin Corp.
4,560
509,945
America Holdings*†
5,370
420,095
CSX Corp.†
11,590
495,241
Waters Corp.*
6,130
410,220
3M Co.†
4,890
457,606
AmerisourceBergen Corp.
8,540
387,118
L-3 Communications Holdings,
Mylan Laboratories, Inc.†
24,180
385,913
Inc.
4,470
456,566
PerkinElmer, Inc.
12,520
365,709
Dover Corp.
8,440
430,018
Watson Pharmaceuticals, Inc.*
11,270
365,148
Cooper Industries Ltd. —
Eli Lilly & Co.
6,320
359,798
Class A†
8,140
415,873
Bristol-Myers Squibb Co.
12,370
356,503
W.W. Grainger, Inc.
4,360
397,588
Thermo Fisher Scientific, Inc.*
5,380
310,534
Cintas Corp.†
9,480
351,708
King Pharmaceuticals, Inc.*†
24,290
284,679
Cummins, Inc.
2,350
300,541
Medco Health Solutions, Inc.*
3,060
276,593
Allied Waste Industries, Inc.*†
20,000
255,000
Gilead Sciences, Inc.*
2,840
116,071
Precision Castparts Corp.
790
116,904
Covidien Ltd.*
160
6,640
FedEx Corp.
860
90,085
Total Health Care
18,423,213
Deere & Co.†
140
20,779
Total Industrials
19,543,887
CONSUMER DISCRETIONARY 7.8%
Walt Disney Co.†
32,450
1,115,955
ENERGY 9.2%
Time Warner, Inc.
60,240
1,106,006
Exxon Mobil Corp.†
68,070
6,300,559
News Corp. — Class A
41,410
910,606
Chevron Corp.
28,670
2,682,938
Comcast Corp. — Class A*†
29,610
715,970
ConocoPhillips
22,740
1,995,890
Viacom, Inc. — Class B*
15,940
621,182
Schlumberger Ltd.†
10,630
1,116,150
Nike, Inc. — Class B
9,910
581,321
Occidental Petroleum Corp.
15,120
968,890
CBS Corp.†
18,160
572,040
Marathon Oil Corp.
14,030
799,991
DIRECTV Group, Inc.*
22,650
549,942
Valero Energy Corp.
11,300
759,134
Starwood Hotels & Resorts
Devon Energy Corp.
9,080
755,456
Worldwide, Inc.
7,750
470,812
Transocean, Inc.*†
6,320
714,476
Macy’s, Inc.
14,230
459,914
National-Oilwell Varco, Inc.*
4,760
687,820
J.C. Penney Co., Inc.†
7,200
456,264
Noble Corp.
9,460
464,013
McDonald’s Corp.
7,920
431,402
XTO Energy, Inc.
6,590
407,526
IAC/ InterActiveCorp*†
14,010
415,677
ENSCO International, Inc.†
7,090
397,749
Genuine Parts Co.
8,110
405,500
BJ Services Co.
14,880
395,064
Home Depot, Inc.†
12,490
405,176
Rowan Cos., Inc.†
9,080
332,146
Big Lots, Inc.*†
13,240
395,082
Halliburton Co.†
1,440
55,296
Gannett Co., Inc.
9,030
394,611
Apache Corp.
190
17,111
Sherwin-Williams Co.†
5,780
379,804
Total Energy
18,850,209
Harley-Davidson, Inc.†
8,070
372,915
HEALTH CARE 9.0%
Meredith Corp.
6,360
364,428
Pfizer, Inc.
88,010
2,150,084
TJX Cos., Inc.
12,290
357,270
Johnson & Johnson, Inc.
28,760
1,889,532
Stanley Works†
6,260
351,374
UnitedHealth Group, Inc.
21,900
1,060,617
Snap-On, Inc.
7,070
350,248
Merck & Co., Inc.
19,380
1,001,752
Family Dollar Stores, Inc.†
12,900
342,624
Amgen, Inc.*†
17,350
981,489
Office Depot, Inc.*
16,600
342,292
Schering-Plough Corp.
28,240
893,231
Black & Decker Corp.†
4,090
340,697
WellPoint, Inc.*
10,960
864,963
OfficeMax, Inc.
9,580
328,307
Baxter International, Inc.
13,240
745,147
Target Corp.
5,130
326,114
Abbott Laboratories
12,490
669,714
Leggett & Platt, Inc.†
16,390
314,032
Aetna, Inc.
12,300
667,521
Dillard’s, Inc. — Class A†
13,980
305,183
Biogen Idec, Inc.*
8,480
562,478
Kohl’s Corp.*
5,070
290,663
22
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
NOVA FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Hasbro, Inc.†
8,800
$
245,344
Constellation Energy Group,
Centex Corp.†
9,100
241,787
Inc.
5,630
$
482,998
Darden Restaurants, Inc.
5,700
238,602
Consolidated Edison, Inc.†
9,360
433,368
Lowe’s Cos., Inc.
6,650
186,333
DTE Energy Co.†
8,230
398,661
KB HOME†
5,830
146,100
Nicor, Inc.†
8,330
357,357
RadioShack Corp.†
3,910
80,781
CenterPoint Energy, Inc.†
22,180
355,545
Brunswick Corp.†
2,580
58,979
TECO Energy, Inc.†
20,850
342,566
Mattel, Inc.
1,590
37,301
Exelon Corp.
3,880
292,397
Clear Channel Communications,
Dominion Resources, Inc.
780
65,754
Inc.
380
14,227
TXU Corp.
670
45,875
Carnival Corp.†
280
13,560
Southern Co.
750
27,210
Total Consumer Discretionary
16,036,425
Total Utilities
5,490,963
CONSUMER STAPLES 6.6%
MATERIALS 2.5%
Procter & Gamble Co.
33,820
2,378,899
Freeport-McMoRan Copper &
Altria Group, Inc.
28,860
2,006,636
Gold, Inc. — Class B
7,900
828,631
Wal-Mart Stores, Inc.
30,650
1,337,872
Dow Chemical Co.
18,120
780,247
PepsiCo, Inc.
14,500
1,062,270
Alcoa, Inc.
18,690
731,153
Coca-Cola Co.
18,050
1,037,333
United States Steel Corp.†
4,900
519,106
CVS Corp.
22,820
904,357
Ashland, Inc.†
6,500
391,365
Kroger Co.
20,240
577,245
Sealed Air Corp.†
14,010
358,096
Kimberly-Clark Corp.
8,000
562,080
Pactiv Corp.*
12,130
347,646
General Mills, Inc.
9,390
544,714
Temple-Inland, Inc.†
6,380
335,779
H.J. Heinz Co.
10,820
499,884
Bemis Co.
11,240
327,196
Safeway, Inc.
14,860
492,015
E.I. du Pont de Nemours
Molson Coors Brewing Co. —
and Co.
4,630
229,463
Class B
4,190
417,617
Allegheny Technologies, Inc.
1,850
203,408
Pepsi Bottling Group, Inc.†
10,250
380,992
Monsanto Co.†
2,050
175,767
Clorox Co.
6,230
379,968
Total Materials
5,227,857
Kraft Foods, Inc. — Class A
9,530
328,880
Total Common Stocks
Walgreen Co.
5,230
247,065
Kellogg Co.
2,430
136,080
(Cost $119,904,409)
156,511,466
Anheuser-Busch Cos., Inc.
2,570
128,474
FACE
Colgate-Palmolive Co.
1,450
103,414
AMOUNT
REPURCHASE AGREEMENTS 23.1%
Costco Wholesale Corp.
410
25,162
Total Consumer Staples
13,550,957
TELECOMMUNICATION SERVICES 3.1%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
AT&T, Inc.
79,530
3,364,914
issued 09/28/07 at 3.96%
Verizon Communications, Inc.
40,870
1,809,724
due 10/01/07
$21,902,445
21,902,445
CenturyTel, Inc.
8,440
390,097
Lehman Brothers Holdings, Inc.
Citizens Communications Co.†
25,800
369,456
issued 09/28/07 at 3.90%
Sprint Nextel Corp.†
17,850
339,150
due 10/01/07††
13,077,549
13,077,549
Total Telecommunication Services
6,273,341
Credit Suisse Group
UTILITIES 2.7%
issued 09/28/07 at 3.95%
FPL Group, Inc.†
9,590
583,839
due 10/01/07††
9,659,750
9,659,750
Duke Energy Corp.†
30,010
560,887
Morgan Stanley
Edison International
9,440
523,448
issued 09/28/07 at 3.80%
PG&E Corp.
10,880
520,064
due 10/01/07
2,576,758
2,576,758
Sempra Energy
8,620
500,994
Total Repurchase Agreements
(Cost $47,216,502)
47,216,502
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
23
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
NOVA FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
SECURITIES LENDING COLLATERAL 9.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
$19,162,855
$
19,162,855
Total Securities Lending Collateral
(Cost $19,162,855)
19,162,855
Total Investments 108.9%
(Cost $186,283,766)
$ 222,890,823
Liabilities in Excess of
Other Assets – (8.9)%
$ (18,173,502)
Net Assets – 100.0%
$ 204,717,321
UNREALIZED
CONTRACTS
GAIN
(NOTE 1)
FUTURES CONTRACTS PURCHASED
December 2007 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $46,762,800)
608
$
1,050,298
UNITS
EQUITY INDEX SWAP AGREEMENTS
December 2007 S&P 500 Index
Swap, Terminating 12/28/07**
(Notional Market Value
$98,023,270)
64,204
$
1,756,141
December 2007 S&P 500 Index
Swap,Terminating 12/14/07**
(Notional Market Value
$5,579,273)
3,654
138,405
(Total Notional Market
Value $103,602,543)
$
1,894,546
** Price Return based on S&P 500 Index +/- financing at a variable rate.
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
24
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
S&P 500 FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 39.1%
Genworth Financial, Inc. — Class A
330
$
10,141
Aon Corp.
220
9,858
FINANCIALS 7.8%
General Growth Properties,
Citigroup, Inc.
3,660
$
170,812
Inc.†
180
9,652
Bank of America Corp.
3,260
163,880
Archstone-Smith Trust
160
9,622
American International Group,
KeyCorp†
290
9,376
Inc.
1,880
127,182
Boston Properties, Inc.†
90
9,351
JPMorgan Chase & Co.
2,490
114,092
Northern Trust Corp.†
140
9,278
Wells Fargo & Co.
2,460
87,625
KIMCO Realty Corp.
190
8,590
Wachovia Corp.†
1,400
70,210
Marshall & Ilsley Corp.
196
8,579
Goldman Sachs Group, Inc.†
300
65,022
Equity Residential
200
8,472
American Express Co.†
870
51,652
Host Hotels & Resorts, Inc.
376
8,437
Morgan Stanley†
770
48,510
Legg Mason, Inc.
100
8,429
Merrill Lynch & Co., Inc.
630
44,906
Moody’s Corp.
160
8,064
Fannie Mae
720
43,783
Countrywide Financial Corp.
420
7,984
U.S. Bancorp†
1,270
41,313
IntercontinentalExchange, Inc.*
50
7,595
MetLife, Inc.†
550
38,352
Discover Financial Services*
350
7,280
Bank of New York Mellon Corp.
844
37,254
AvalonBay Communities, Inc.
60
7,084
Prudential Financial, Inc.
336
32,787
Public Storage, Inc.
86
6,764
Freddie Mac
480
28,325
Synovus Financial Corp.
240
6,732
Allstate Corp.
430
24,592
UnumProvident Corp.†
270
6,607
Travelers Cos, Inc.
480
24,163
Hudson City Bancorp, Inc.
390
5,998
Lehman Brothers Holdings, Inc.†
390
24,075
American Capital Strategies,
CME Group, Inc.
40
23,494
Ltd.†
140
5,982
Washington Mutual, Inc.†
640
22,598
Leucadia National Corp.
120
5,786
Hartford Financial Services Group,
M&T Bank Corp.†
55
5,690
Inc.†
226
20,916
Comerica, Inc.
110
5,641
AFLAC, Inc.
360
20,534
Plum Creek Timber Co., Inc.
Capital One Financial Corp.
306
20,328
(REIT)†
126
5,640
State Street Corp.
290
19,766
CIT Group, Inc.
140
5,628
SunTrust Banks, Inc.
260
19,674
MBIA, Inc.
90
5,495
PNC Financial Services Group,
Cincinnati Financial Corp.
126
5,457
Inc.†
250
17,025
Commerce Bancorp, Inc.†
136
5,274
BB&T Corp.
410
16,560
Zions Bancorporation
75
5,150
Simon Property Group, Inc.
160
16,000
Developers Diversified Realty
Loews Corp.
330
15,956
Corp.
90
5,028
Chubb Corp.†
290
15,556
SAFECO Corp.†
80
4,898
Regions Financial Corp.†
520
15,330
Huntington Bancshares, Inc.†
270
4,585
Franklin Resources, Inc.†
120
15,300
Sovereign Bancorp, Inc.
260
4,430
Charles Schwab Corp.
700
15,120
Ambac Financial Group, Inc.†
70
4,404
SLM Corp.
296
14,702
Torchmark Corp.
70
4,362
ACE Ltd.
240
14,537
E*Trade Financial Corp.*†
310
4,049
Fifth Third Bancorp†
390
13,213
CB Richard Ellis Group, Inc. —
Lincoln National Corp.
200
13,194
Class A*†
140
3,898
Principal Financial Group, Inc.
200
12,618
Assurant, Inc.
66
3,531
ProLogis†
186
12,341
Janus Capital Group, Inc.†
120
3,394
National City Corp.†
470
11,792
Apartment Investment &
Bear Stearns Cos., Inc.
90
11,053
Management Co. — Class A†
70
3,159
Vornado Realty Trust†
100
10,935
First Horizon National Corp.†
90
2,399
Ameriprise Financial, Inc.†
170
10,729
Federated Investors, Inc. —
T. Rowe Price Group, Inc.†
190
10,581
Class B†
60
2,382
XL Capital Ltd.
130
10,296
MGIC Investment Corp.†
55
1,777
Progressive Corp.
530
10,287
Total Financials
Marsh & McLennan Cos., Inc.
400
10,200
1,961,102
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
25
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
S&P 500 FUND
MARKET
MARKET
VALUE
VALUE
SHARES
(NOTE 1)
SHARES
(NOTE 1)
INFORMATION TECHNOLOGY 6.3%
Linear Technology Corp.†
160
$
5,598
Microsoft Corp.
5,920
$
174,403
Fidelity National Information
Cisco Systems, Inc.*
4,480
148,333
Services, Inc.
120
5,324
International Business Machines
Advanced Micro Devices, Inc.*†
398
5,254
Corp.†
1,000
117,800
Citrix Systems, Inc.*†
130
5,242
Intel Corp.
4,290
110,939
National Semiconductor Corp.†
180
4,882
Apple, Inc.*
638
97,959
BMC Software, Inc.*
150
4,684
Google, Inc. — Class A*
166
94,167
LSI Logic Corp.*
530
3,933
Hewlett-Packard Co.
1,890
94,103
Affiliated Computer Services,
Oracle Corp.*
2,890
62,568
Inc. — Class A*
70
3,517
Qualcomm, Inc.
1,230
51,980
Akamai Technologies, Inc.*
120
3,448
Dell, Inc.*
1,670
46,092
Jabil Circuit, Inc.
150
3,426
Texas Instruments, Inc.
1,050
38,419
Tellabs, Inc.*
320
3,046
eBay, Inc.*†
840
32,777
Molex, Inc.
110
2,962
EMC Corp*
1,540
32,032
Lexmark International, Inc.*
70
2,907
Motorola, Inc.
1,700
31,501
Solectron Corp.*
670
2,613
Corning, Inc.
1,156
28,495
Novellus Systems, Inc.*†
90
2,453
Yahoo!, Inc.*†
990
26,572
JDS Uniphase Corp.*
156
2,334
Applied Materials, Inc.
1,010
20,907
Ciena Corp.*
60
2,285
Adobe Systems, Inc.*
430
18,774
Novell, Inc.*
258
1,971
Automatic Data Processing, Inc.
390
17,913
Teradyne, Inc.*
140
1,932
Sun Microsystems, Inc.*
2,600
14,586
Compuware Corp.*
220
1,764
Nvidia Corp.*
400
14,496
Convergys Corp.*
100
1,736
Juniper Networks, Inc.*†
380
13,912
Unisys Corp.*
260
1,721
Tyco Electronics Ltd.
374
13,251
Tektronix, Inc.
60
1,664
Electronic Arts, Inc.*
230
12,878
QLogic Corp.*†
110
1,479
Symantec Corp.*†
660
12,791
Total Information Technology
Broadcom Corp. — Class A*†
336
12,244
1,598,709
Xerox Corp.*
690
11,965
ENERGY 4.6%
Western Union Co.
570
11,953
Exxon Mobil Corp.
4,080
377,645
Agilent Technologies, Inc.*
280
Chevron Corp.
1,570
146,921
10,326
Paychex, Inc.†
250
ConocoPhillips
1,200
105,324
10,250
MEMC Electronic Materials, Inc.*
170
10,006
Schlumberger Ltd.†
880
92,400
SanDisk Corp.*
170
9,367
Occidental Petroleum Corp.
610
39,089
Marathon Oil Corp.
500
28,510
Cognizant Technology Solutions
Corp. — Class A*
110
8,775
Valero Energy Corp.
410
27,544
Devon Energy Corp.
330
27,456
Autodesk, Inc.*
170
8,495
Halliburton Co.
Analog Devices, Inc.†
230
8,317
650
24,960
Electronic Data Systems Corp.
367
8,015
Transocean, Inc.*†
210
23,740
KLA-Tencor Corp.†
140
Apache Corp.
240
21,614
7,809
Baker Hughes, Inc.†
226
20,424
CA, Inc.
290
7,459
Intuit, Inc.*†
Anadarko Petroleum Corp.
340
18,275
246
7,454
National-Oilwell Varco, Inc.*
126
Computer Sciences Corp.*
126
7,043
18,207
Network Appliance, Inc.*†
260
XTO Energy, Inc.
280
17,315
6,997
NCR Corp.*
130
6,474
Weatherford International Ltd.*
250
16,795
Williams Cos., Inc.
440
14,986
Altera Corp.
260
6,261
Micron Technology, Inc.*†
556
6,172
Hess Corp.
200
13,306
EOG Resources, Inc.†
180
13,019
Fiserv, Inc.*
120
6,103
Spectra Energy Corp.†
460
11,261
VeriSign, Inc.*
180
6,073
Microchip Technology, Inc.
160
5,811
Smith International, Inc.
150
10,710
Avaya, Inc.*
340
5,766
Chesapeake Energy Corp.†
300
10,578
Xilinx, Inc.†
220
5,751
Noble Corp.
200
9,810
Murphy Oil Corp.†
140
9,785
Peabody Energy Corp.†
200
9,574
26
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
S&P 500 FUND
MARKET
MARKET
VALUE
VALUE
SHARES
(NOTE 1)
SHARES
(NOTE 1)
El Paso Corp.
510
$
8,655
Barr Pharmaceuticals, Inc.*
75
$
4,268
Nabors Industries Ltd.*†
210
6,462
Patterson Cos., Inc.*†
100
3,861
Sunoco, Inc.†
90
6,370
Varian Medical Systems, Inc.*†
90
3,770
Consol Energy, Inc.
130
6,058
Manor Care, Inc.
50
3,220
ENSCO International, Inc.†
105
5,890
Mylan Laboratories, Inc.
180
2,873
BJ Services Co.
210
5,576
Millipore Corp.*†
36
2,729
Tesoro Corp.
100
4,602
Watson Pharmaceuticals, Inc.*
80
2,592
Rowan Cos., Inc.†
76
2,780
PerkinElmer, Inc.
86
2,512
Total Energy
1,155,641
Bausch & Lomb, Inc.
36
2,304
HEALTH CARE 4.5%
King Pharmaceuticals, Inc.*†
180
2,110
Johnson & Johnson, Inc.
2,130
139,941
Tenet Healthcare Corp.*†
350
1,176
Pfizer, Inc.
5,090
124,349
Total Health Care
1,149,199
Merck & Co., Inc.
1,600
82,704
INDUSTRIALS 4.5%
Abbott Laboratories
1,140
61,127
General Electric Co.
7,530
311,742
UnitedHealth Group, Inc.
970
46,977
Boeing Co.
580
60,894
Medtronic, Inc.†
830
46,820
United Technologies Corp.
730
58,750
Amgen, Inc.*†
800
45,256
United Parcel Service, Inc. —
Wyeth
990
44,104
Class B
770
57,827
Bristol-Myers Squibb Co.
1,450
41,789
3M Co.†
530
49,597
Eli Lilly & Co.
730
41,559
Caterpillar, Inc.
470
36,862
Schering-Plough Corp.
1,190
37,640
Honeywell International, Inc.
550
32,708
WellPoint, Inc.*
440
34,725
Emerson Electric Co.
580
30,868
Gilead Sciences, Inc.*
680
27,791
Lockheed Martin Corp.
256
27,773
Baxter International, Inc.
470
26,452
General Dynamics Corp.
298
25,172
Aetna, Inc.
380
20,623
FedEx Corp.
230
24,092
Celgene Corp.*†
276
19,681
Deere & Co.†
160
23,747
Medco Health Solutions, Inc.*
200
18,078
Union Pacific Corp.
200
22,612
Thermo Fisher Scientific, Inc.*
310
17,893
Raytheon Co.†
320
20,422
Cardinal Health, Inc.
270
16,883
Northrop Grumman Corp.
250
19,500
Covidien Ltd.*
374
15,521
Illinois Tool Works, Inc.
310
18,488
Allergan, Inc.
230
14,828
Burlington Northern Santa Fe
Becton, Dickinson & Co.†
180
14,769
Corp.†
220
17,857
Biogen Idec, Inc.*
210
13,929
Tyco International Ltd.†
374
16,583
Boston Scientific Corp.*
980
13,671
Paccar, Inc.
180
15,345
Zimmer Holdings, Inc.*
166
13,444
Norfolk Southern Corp.
290
15,054
McKesson Corp.
220
12,934
Danaher Corp.
180
14,888
Genzyme Corp.*
190
11,772
Precision Castparts Corp.
100
14,798
Stryker Corp.†
170
11,689
Waste Management, Inc.
380
14,341
CIGNA Corp.
210
11,191
CSX Corp.†
320
13,674
St. Jude Medical, Inc.*†
250
11,017
Ingersoll-Rand Co. — Class A
210
11,439
Express Scripts, Inc.*
190
10,606
Textron, Inc.
180
11,198
Forest Laboratories, Inc.*
230
8,577
Eaton Corp.
110
10,894
Humana, Inc.*
120
8,386
Cummins, Inc.
80
10,231
C.R. Bard, Inc.†
80
7,055
Parker Hannifin Corp.
90
10,065
Coventry Health Care, Inc.*
110
6,843
L-3 Communications Holdings,
Laboratory Corporation of
Inc.
90
9,193
America Holdings*†
86
6,728
ITT Industries, Inc.
126
8,559
Quest Diagnostics, Inc.†
110
6,355
Rockwell Collins, Inc.
116
8,473
AmerisourceBergen Corp.
130
5,893
Southwest Airlines Co.†
550
8,140
Hospira, Inc.*
120
4,974
Fluor Corp.
56
8,063
Applera Corp. — Applied
Rockwell Automation, Inc.
110
7,646
Biosystems Group
130
4,503
Dover Corp.
146
7,439
Waters Corp.*
66
4,417
Pitney Bowes, Inc.
160
7,267
IMS Health, Inc.
140
4,290
CH Robinson Worldwide, Inc.†
126
6,841
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
27
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
S&P 500 FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Cooper Industries Ltd. —
Tyson Foods, Inc. — Class A
196
$
3,499
Class A†
130
$
6,642
Estee Lauder Cos., Inc. —
Masco Corp.†
270
6,256
Class A†
80
3,397
Terex Corp.*
70
6,231
Constellation Brands, Inc. —
Goodrich Corp.
90
6,141
Class A*†
140
3,389
RR Donnelley & Sons Co.†
156
5,703
Dean Foods Co.
100
2,558
American Standard Cos., Inc.
130
4,631
Avery Dennison Corp.†
Total Consumer Staples
939,231
80
4,562
CONSUMER DISCRETIONARY 3.6%
W.W. Grainger, Inc.
50
4,560
Equifax, Inc.
100
3,812
Comcast Corp. — Class A*†
2,270
54,889
Time Warner, Inc.
2,740
50,306
Cintas Corp.†
95
3,525
Robert Half International, Inc.†
116
3,464
Walt Disney Co.†
1,430
49,178
Monster Worldwide, Inc.*†
100
3,406
McDonald’s Corp.
880
47,934
Home Depot, Inc.†
1,240
Pall Corp.
86
3,345
40,226
Target Corp.
Allied Waste Industries, Inc.*
205
2,614
620
39,413
Ryder System, Inc.†
40
1,960
News Corp. — Class A
1,700
37,383
Total Industrials
1,135,894
Lowe’s Cos., Inc.
1,090
30,542
Amazon.com, Inc.*†
220
20,493
CONSUMER STAPLES 3.7%
Viacom, Inc. — Class B*
500
19,485
Procter & Gamble Co.
2,290
161,079
Johnson Controls, Inc.
146
17,244
Altria Group, Inc.
1,546
107,493
Nike, Inc. — Class B
280
16,425
PepsiCo, Inc.
1,190
87,179
CBS Corp.
500
15,750
Coca-Cola Co.
1,460
83,906
Carnival Corp.
320
15,498
Wal-Mart Stores, Inc.
1,760
76,824
General Motors Corp.†
420
15,414
CVS Corp.
1,090
43,197
Starbucks Corp.*†
550
14,410
Kraft Foods, Inc. — Class A
1,160
40,032
Clear Channel Communications,
Walgreen Co.
730
34,485
Inc.
370
13,853
Anheuser-Busch Cos., Inc.
550
27,494
DIRECTV Group, Inc.*
560
13,597
Colgate-Palmolive Co.
370
26,388
Best Buy Co., Inc.†
290
13,346
Kimberly-Clark Corp.
310
21,781
Hilton Hotels Corp.†
286
13,296
Costco Wholesale Corp.
320
19,638
Kohl’s Corp.*
230
13,186
Sysco Corp.
450
16,015
Ford Motor Co.*†
1,540
13,075
Archer-Daniels-Midland Co.
470
15,548
Yum! Brands, Inc.
380
12,855
Kroger Co.
520
14,830
McGraw-Hill Cos., Inc.†
250
12,727
General Mills, Inc.
240
13,922
Coach, Inc.*
268
12,668
Avon Products, Inc.
320
12,010
Harrah’s Entertainment, Inc.
140
12,170
Kellogg Co.
190
10,640
Omnicom Group, Inc.†
240
11,542
H.J. Heinz Co.
230
10,626
Staples, Inc.
520
11,175
Safeway, Inc.
320
10,595
International Game Technology,
WM Wrigley Jr Co.
160
10,277
Inc.†
250
10,775
ConAgra Foods, Inc.
360
9,407
Macy’s, Inc.
320
10,342
Sara Lee Corp.
530
8,846
J.C. Penney Co., Inc.†
160
10,139
Reynolds American, Inc.†
126
8,012
Marriott International, Inc. —
Campbell Soup Co.
166
6,142
Class A
230
9,998
Clorox Co.
100
6,099
TJX Cos., Inc.†
330
9,593
UST, Inc.†
120
5,952
Starwood Hotels & Resorts
SUPERVALU, Inc.
148
5,773
Worldwide, Inc.
150
9,112
Hershey Co.†
120
5,569
Fortune Brands, Inc.†
110
8,964
Coca-Cola Enterprises, Inc.†
207
5,014
Harley-Davidson, Inc.
180
8,318
Molson Coors Brewing Co. —
Gannett Co., Inc.
166
7,254
Class B
50
4,984
Nordstrom, Inc.†
150
7,033
Whole Foods Market, Inc.†
100
4,896
Sears Holdings Corp.*†
55
6,996
Brown-Forman Corp. — Class B
60
4,495
Bed Bath & Beyond, Inc.*
200
6,824
Pepsi Bottling Group, Inc.†
98
3,643
Mattel, Inc.
290
6,803
McCormick & Co., Inc.
100
3,597
The Gap, Inc.
360
6,638
28
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
S&P 500 FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Genuine Parts Co.
120
$
6,000
Qwest Communications
Apollo Group, Inc. — Class A*
96
5,774
International, Inc.*†
1,170
$
10,717
Newell Rubbermaid, Inc.
200
5,764
Embarq Corp.
110
6,116
Eastman Kodak Co.†
210
5,620
Windstream Corp.†
350
4,942
VF Corp.
67
5,410
CenturyTel, Inc.
80
3,698
Whirlpool Corp.
60
5,346
Citizens Communications Co.
250
3,580
Limited Brands, Inc.†
230
5,265
Total Telecommunication Services
Sherwin-Williams Co.†
80
5,257
370,745
H&R Block, Inc.†
240
5,083
UTILITIES 1.3%
Tiffany & Co.
96
5,026
Exelon Corp.
496
37,379
TXU Corp.
340
23,280
Goodyear Tire & Rubber Co.*
160
4,866
Abercrombie & Fitch Co. —
Southern Co.
560
20,317
FPL Group, Inc.†
296
Class A
56
4,519
18,020
Dominion Resources, Inc.
Wyndham Worldwide Corp.
130
4,259
210
17,703
Duke Energy Corp.†
930
17,382
Darden Restaurants, Inc.
100
4,186
Public Service
IAC/InterActiveCorp*
140
4,154
Enterprise Group, Inc.
186
16,366
Office Depot, Inc.*
200
4,124
Harman International Industries,
Entergy Corp.
140
15,161
Inc.†
45
3,893
FirstEnergy Corp.
220
13,935
American Electric Power Co.,
Black & Decker Corp.†
46
3,832
Inc.
Interpublic Group of Cos., Inc.*†
348
3,612
290
13,363
AutoZone, Inc.*†
30
3,484
Edison International
240
13,308
PPL Corp.
280
Stanley Works†
60
3,368
12,964
Hasbro, Inc.†
120
PG&E Corp.
260
12,428
3,346
Constellation Energy Group, Inc.
130
11,153
Polo Ralph Lauren Corp.
40
3,110
Sempra Energy
190
11,043
Dow Jones & Co., Inc.†
50
2,985
AES Corp.*
488
9,780
EW Scripps Co. — Class A
70
2,940
Family Dollar Stores, Inc.†
110
2,922
Consolidated Edison, Inc.
200
9,260
Liz Claiborne, Inc.
80
2,746
Progress Energy, Inc.†
190
8,901
Ameren Corp.†
150
D.R. Horton, Inc.†
196
2,511
7,875
Questar Corp.
130
6,829
Leggett & Platt, Inc.†
130
2,491
Xcel Energy, Inc.
310
6,677
Centex Corp.†
90
2,391
Pulte Homes, Inc.†
160
2,178
DTE Energy Co.†
130
6,297
Allegheny Energy, Inc.*
120
6,271
Lennar Corp. — Class A
96
2,174
NiSource, Inc.†
New York Times Co. — Class A†
110
2,174
200
3,828
CenterPoint Energy, Inc.†
236
3,783
Wendy’s International, Inc.
60
2,095
Dynegy Inc.*
360
3,326
Big Lots, Inc.*†
70
2,089
Integrys Energy Group, Inc.
RadioShack Corp.†
100
2,066
60
3,074
CMS Energy Corp.
170
2,859
OfficeMax, Inc.
60
2,056
Pinnacle West Capital Corp.
Snap-On, Inc.
40
1,982
66
2,608
AutoNation, Inc.*†
TECO Energy, Inc.†
110
1,949
150
2,464
Nicor, Inc.†
30
1,287
Meredith Corp.
30
1,719
Tribune Co.
MATERIALS 1.3%
60
1,639
Total Utilities
338,921
Brunswick Corp.†
70
1,600
Jones Apparel Group, Inc.†
70
1,479
Monsanto Co.†
400
34,296
KB HOME†
55
1,378
E.I. du Pont de Nemours
Circuit City Stores, Inc.†
120
949
and Co.
680
33,701
Dillard’s, Inc. — Class A†
40
873
Dow Chemical Co.
696
29,970
Total Consumer Discretionary
909,553
Freeport-McMoRan Copper &
TELECOMMUNICATION SERVICES 1.5%
Gold, Inc. — Class B
280
29,369
AT&T, Inc.
4,480
189,549
Alcoa, Inc.
650
25,428
Verizon Communications, Inc.
2,130
94,316
Praxair, Inc.
240
20,102
Sprint Nextel Corp.†
2,090
39,710
Air Products & Chemicals, Inc.
157
15,348
Newmont Mining Corp.
326
14,582
Alltel Corp.
260
18,117
Nucor Corp.
210
12,489
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
29
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
S&P 500 FUND
VALUE
FACE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
Weyerhaeuser Co.†
160
$
11,568
SECURITIES LENDING COLLATERAL 5.4%
International Paper Co.
320
11,478
Investment in Securities Lending Short Term
United States Steel Corp.†
90
9,535
Investment Portfolio Held by
PPG Industries, Inc.†
120
9,066
U.S. Bank (Note 8)
$1,346,415
$
1,346,415
Allegheny Technologies, Inc.
80
8,796
Total Securities Lending Collateral
Vulcan Materials Co.†
70
6,241
(Cost $1,346,415)
Ecolab, Inc.†
130
6,136
1,346,415
(Cost $26,460,392)
Rohm & Haas Co.†
100
5,567
Total Investments 109.3%
Sigma-Aldrich Corp.
100
4,874
$ 27,592,425
Ball Corp.
80
4,300
Liabilities in Excess of
Temple-Inland, Inc.†
80
4,210
Other Assets – (9.3)%
$ (2,339,497)
Eastman Chemical Co.†
60
4,004
Net Assets – 100.0%
$ 25,252,928
MeadWestvaco Corp.
130
3,839
International Flavors & Fragrances,
UNREALIZED
Inc.
70
3,700
GAIN (LOSS)
Sealed Air Corp.†
120
3,067
CONTRACTS
(NOTE 1)
Pactiv Corp.*
100
2,866
FUTURES CONTRACTS PURCHASED
Ashland, Inc.
40
2,408
Bemis Co.
December 2007 S&P 500 Index
80
2,329
Mini Futures Contracts
Hercules, Inc.†
90
1,892
(Aggregate Market Value
Total Materials
321,161
of Contracts $14,459,550)
188
$
320,994
Total Common Stocks
(Cost $8,748,123)
9,880,156
UNITS
FACE
EQUITY INDEX SWAP AGREEMENTS
AMOUNT
December 2007 S&P 500 Index
Swap, Terminating 12/14/07**
REPURCHASE AGREEMENTS 64.8%
(Notional Market Value
Repurchase Agreement (Note 5)
$210,613)
138
$
19,730
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
December 2007 S&P 500 Index
Swap, Terminating 12/28/07**
due 10/01/07
$9,400,968
9,400,968
Lehman Brothers Holdings, Inc.
(Notional Market Value
issued 09/28/07 at 3.90%
$904,782)
593
(27,787)
(Total Notional Market
due 10/01/07††
5,371,202
5,371,202
Value $1,115,395)
$
(8,057)
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
1,105,996
1,105,996
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07††
487,688
487,688
Total Repurchase Agreements
(Cost $16,365,854)
16,365,854
** Price Return based on S&P 500 Index +/- financing at a variable rate.
* Non-Income Producing Security.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
REIT—Real Estate Investment Trust.
30
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INVERSE S&P 500 STRATEGY FUND
MARKET
FACE
VALUE
(LOSS)
UNREALIZED
AMOUNT
(NOTE 1)
CONTRACTS
(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 58.1%
FUTURES CONTRACTS SOLD SHORT
Fannie Mae*
December 2007 S&P 500 Index
5.09% due 12/14/07
$50,000,000
$
49,477,375
Mini Futures Contracts
Federal Farm Credit Bank*
(Aggregate Market Value
5.12% due 10/03/07
25,000,000
24,992,889
of Contracts $80,911,950)
1,052
$
(2,580,319)
Federal Home Loan Bank*
5.11% due 11/13/07
25,000,000
24,847,410
UNITS
Freddie Mac*
5.10% due 11/05/07
25,000,000
24,876,042
EQUITY INDEX SWAP AGREEMENTS
5.12% due 11/13/07
25,000,000
24,847,111
SOLD SHORT
4.74% due 12/10/07
25,000,000
24,769,583
December 2007 S&P 500 Index
Total Federal Agency Discount Notes
Swap, Terminating 12/28/07**
(Cost $173,810,410)
173,810,410
(Notional Market Value
$109,907,094)
71,988
$
(1,376,003)
CONTRACTS
December 2007 S&P 500 Index
Swap, Terminating 12/14/07**
OPTIONS PURCHASED 0.0%
Call Options on:
(Notional Market Value
December 2007 S&P 500
$109,892,972)
71,978
(2,840,063)
(Total Notional Market
Index Futures Contracts
Value $219,800,066)
$
(4,216,066)
Expiring December 2007
with strike price of 1900†
300
—
Total Options Purchased
(Cost $11,215)
—
FACE
AMOUNT
REPURCHASE AGREEMENTS 44.4%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$63,122,917
63,122,917
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07††
49,542,126
49,542,126
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07††
12,813,613
12,813,613
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
7,426,225
7,426,225
Total Repurchase Agreements
(Cost $132,904,881)
132,904,881
Total Investments 102.5%
(Cost $306,726,506)
$ 306,715,291
Liabilities in Excess of
Other Assets – (2.5)%
$
(7,622,214)
Net Assets – 100.0%
$ 299,093,077
U.S. Government.
* The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the
† Security is fair valued.
** Price Return based on S&P 500 Index +/- financing at a variable rate.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
31
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
OTC FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 86.4%
CONSUMER DISCRETIONARY 13.1%
Comcast Corp. — Class A*†
712,840
$
17,236,471
INFORMATION TECHNOLOGY 55.6%
Starbucks Corp.*†
386,170
10,117,654
Apple, Inc.*†
494,390
$
75,908,641
Garmin Ltd.†
81,510
9,732,294
Microsoft Corp.
1,395,400
41,108,484
Amazon.com, Inc.*†
97,200
9,054,180
Qualcomm, Inc.
784,030
33,133,108
Wynn Resorts Ltd.†
57,400
9,043,944
Cisco Systems, Inc.*
964,220
31,925,324
Sears Holdings Corp.*†
61,780
7,858,416
Google, Inc. — Class A*
52,420
29,736,294
Staples, Inc.
286,510
6,157,100
Research In Motion Ltd.*
223,990
22,074,215
Expedia, Inc.*
180,430
5,752,109
Oracle Corp.*
888,900
19,244,685
IAC/InterActiveCorp*†
155,070
4,600,927
eBay, Inc.*†
485,500
18,944,210
Apollo Group, Inc. — Class A*
75,130
4,519,070
Intel Corp.
521,210
13,478,491
Virgin Media, Inc.
163,260
3,962,320
Applied Materials, Inc.
643,390
13,318,173
Bed Bath & Beyond, Inc.*†
108,240
3,693,149
Lam Research Corp.*†
206,540
11,000,320
EchoStar Communications
Fiserv, Inc.*
207,670
10,562,096
Corp.*
73,530
3,441,939
Check Point Software
Liberty Global, Inc. —
Technologies Ltd.*†
399,510
10,059,662
Class A*†
81,040
3,324,261
CheckFree Corp.*†
209,960
9,771,538
Liberty Media Corp —
Dell, Inc.*
333,440
9,202,944
Interactive*†
137,740
2,645,985
KLA-Tencor Corp.†
148,890
8,305,084
Ross Stores, Inc.†
94,700
2,428,108
Nvidia Corp.*
228,285
8,273,048
Sirius Satellite Radio, Inc.*†
607,720
2,120,943
Adobe Systems, Inc.*
186,200
8,129,492
Discovery Holding Co. —
Symantec Corp.*†
353,040
6,841,915
Class A*†
69,540
2,006,229
Juniper Networks, Inc.*†
154,000
5,637,940
Lamar Advertising Co. —
Flextronics International Ltd.*†
495,770
5,542,709
Class A
11,120
544,546
Broadcom Corp. — Class A*†
150,230
5,474,381
Total Consumer Discretionary
108,239,645
Intuit, Inc.*†
178,620
5,412,186
Autodesk, Inc.*
94,490
4,721,665
HEALTH CARE 10.5%
Network Appliance, Inc.*†
Gilead Sciences, Inc.*
167,180
381,660
15,598,444
4,498,814
Xilinx, Inc.†
164,890
4,310,225
Amgen, Inc.*†
224,120
12,678,468
Altera Corp.†
178,500
Biogen Idec, Inc.*†
182,400
12,098,592
4,298,280
Cadence Design Systems,
Teva Pharmaceutical
Inc.*†
192,890
Industries Ltd. — SP ADR†
4,280,229
249,990
11,117,055
Cognizant Technology Solutions
Celgene Corp.*†
148,140
10,563,863
Genzyme Corp.*
98,730
6,117,311
Corp. — Class A*
49,120
3,918,302
Express Scripts, Inc.*
100,440
SanDisk Corp.*†
5,606,561
66,130
3,643,763
Logitech International SA*†
102,180
3,019,419
Cephalon, Inc.*†
48,980
3,578,479
Intuitive Surgical, Inc.*†
15,196
3,495,080
VeriSign, Inc.*†
82,360
2,778,826
Yahoo!, Inc.*†
97,770
2,624,147
Patterson Cos., Inc.*†
57,990
2,238,994
DENTSPLY International, Inc.
48,490
2,019,124
Citrix Systems, Inc.*†
63,310
2,552,659
Sun Microsystems, Inc.*
Sepracor, Inc.*†
421,300
2,363,493
41,160
1,131,900
Infosys Technologies Ltd. —
Total Health Care
86,243,871
SP ADR
43,330
2,096,739
INDUSTRIALS 4.2%
Telefonaktiebolaget LM
Paccar, Inc.
113,472
9,673,488
Ericsson — SP ADR†
52,310
2,081,938
Expeditors International
BEA Systems, Inc.*†
145,660
2,020,304
Washington, Inc.†
86,000
4,067,800
CDW Corp.*
20,880
1,820,736
Foster Wheeler Ltd.*
30,370
3,986,974
Tellabs, Inc.*
180,500
1,718,360
CH Robinson Worldwide, Inc.†
67,460
3,662,403
Activision, Inc.*
51,690
1,115,987
Cintas Corp.†
78,430
2,909,753
Paychex, Inc.
17,260
707,660
Fastenal Co.†
58,850
2,672,378
Akamai Technologies, Inc.*†
15,470
444,453
Joy Global, Inc.
42,260
2,149,344
Ryanair Holdings PLC —
Total Information Technology
458,100,939
UAL Corp.*†
44,490
2,070,120
SP ADR*†
48,140
1,998,291
32
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
OTC FUND
VALUE
FACE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
Monster Worldwide, Inc.*†
54,400
$
1,852,864
SECURITIES LENDING COLLATERAL 19.4%
Total Industrials
Investment Portfolio Held by
35,043,415
Investment in Securities Lending Short Term
TELECOMMUNICATION SERVICES 1.4%
NII Holdings, Inc. — Class B*†
69,440
5,704,496
U.S. Bank (Note 8)
$159,629,573
$ 159,629,573
Millicom International
Total Securities Lending Collateral
Cellular SA*†
40,768
3,420,435
(Cost $159,629,573)
Level 3 Communications, Inc.*†
159,629,573
615,910
2,863,982
Total Investments 118.4%
Total Telecommunication Services
11,988,913
(Cost $613,661,031)
$ 976,473,602
CONSUMER STAPLES 1.1%
Liabilities in Excess of
Costco Wholesale Corp.†
99,960
6,134,545
Other Assets – (18.4)%
$ (151,975,409)
Whole Foods Market, Inc.†
57,460
2,813,242
Net Assets – 100.0%
$ 824,498,193
Total Consumer Staples
8,947,787
MATERIALS 0.3%
GAIN
UNREALIZED
Sigma-Aldrich Corp.
51,670
2,518,396
CONTRACTS
(NOTE 1)
Total Materials
2,518,396
FUTURES CONTRACTS PURCHASED
ENERGY 0.2%
Patterson-UTI Energy, Inc.†
63,350
1,429,809
December 2007 Nasdaq 100 Index
Mini Futures Contracts
Total Energy
1,429,809
(Aggregate Market Value
Total Common Stocks
of Contracts $50,718,000)
1,200
$
2,037,771
(Cost $349,700,204)
712,512,775
UNITS
AMOUNT
FACE
EQUITY INDEX SWAP AGREEMENTS
December 2007 Nasdaq 100 Index
REPURCHASE AGREEMENTS 12.6%
Swap, Terminating 12/28/07**
Repurchase Agreement (Note 5)
(Notional Market Value
Mizuho Financial Group, Inc.
$27,121,331)
12,970
$
1,391,762
issued 09/28/07 at 3.96%
December 2007 Nasdaq 100 Index
due 10/01/07
(Notional Market Value
$ 58,619,679
58,619,679
Swap, Terminating 12/14/07**
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
$33,047,310)
15,804
906,591
due 10/01/07††
35,961,939
35,961,939
(Total Notional Market
Morgan Stanley
Value $60,168,641)
$
2,298,353
issued 09/28/07 at 3.80%
due 10/01/07
6,896,433
6,896,433
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07††
2,853,203
2,853,203
Total Repurchase Agreements
(Cost $104,331,254)
104,331,254
** Price Return based on Nasdaq 100 Index +/- financing at a variable rate.
* Non-Income Producing Security.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
† 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
|
33
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INVERSE OTC STRATEGY FUND
MARKET
UNREALIZED
CONTRACTS
(NOTE 1)
CONTRACTS
(NOTE 1)
VALUE
GAIN (LOSS)
OPTIONS PURCHASED 0.0%
FUTURES CONTRACTS SOLD SHORT
Call Options on:
December 2007 Nasdaq 100 Index
December 2007 Nasdaq 100
Mini Futures Contracts
Index Futures Contracts
(Aggregate Market Value
Expiring December 2007
of Contracts $3,803,850)
90
$
(125,791)
with strike price of 2800†
100
$
—
Total Options Purchased
UNITS
EQUITY INDEX SWAP AGREEMENTS
(Cost $3,405)
—
FACE
SOLD SHORT
AMOUNT
December 2007 Nasdaq 100 Index
REPURCHASE AGREEMENTS 106.7%
Swap, Terminating 12/28/07*
Repurchase Agreement (Note 5)
(Notional Market Value
Mizuho Financial Group, Inc.
$5,881,655)
2,813
$
353,119
issued 09/28/07 at 3.96%
December 2007 Nasdaq 100 Index
due 10/01/07
(Notional Market Value
$49,038,911
49,038,911
Swap, Terminating 12/14/07*
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
$80,095,569)
38,303
(2,360,583)
due 10/01/07††
37,901,260
37,901,260
(Total Notional Market
Morgan Stanley
Value $85,977,224)
$ (2,007,464)
issued 09/28/07 at 3.80%
due 10/01/07
5,769,284
5,769,284
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07††
3,140,504
3,140,504
Total Repurchase Agreements
(Cost $95,849,959)
95,849,959
Total Investments 106.7%
(Cost $95,853,364)
$ 95,849,959
Liabilities in Excess of
Other Assets – (6.7)%
$ (6,050,783)
Net Assets – 100.0%
$ 89,799,176
† Security is fair valued.
* Price Return based on Nasdaq 100 Index +/- financing at a variable rate.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
34
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
MID-CAP 1.5x STRATEGY FUND
MARKET
VALUE
VALUE
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 53.9%
Colonial BancGroup, Inc.†
8,590
$
185,716
SEI Investments Co.
6,540
178,411
INDUSTRIALS 8.3%
HCC Insurance Holdings, Inc.†
6,150
176,136
Jacobs Engineering Group,
Protective Life Corp.
4,030
171,033
Inc.*†
3,440
$
259,995
PMI Group, Inc.
5,090
166,443
Roper Industries, Inc.†
3,710
243,005
Wilmington Trust Corp.
4,190
162,991
SPX Corp.
2,260
209,186
City National Corp.†
2,320
161,263
AMETEK, Inc.
4,560
197,083
Everest Re Group Ltd.
1,460
160,950
Lincoln Electric Holdings, Inc.
2,490
193,249
Unitrin, Inc.
3,180
157,696
Teleflex, Inc.†
2,460
191,683
Hanover Insurance Group, Inc.
3,530
155,991
Joy Global, Inc.
3,720
189,199
W.R. Berkley Corp.
5,050
149,632
Expeditors International
First Niagara Financial Group,
Washington, Inc.†
3,890
183,997
Inc.†
10,030
141,925
Thomas & Betts Corp.*†
3,060
179,438
AmeriCredit Corp.*†
7,740
136,069
Republic Services, Inc.
5,470
178,924
Duke Realty Corp.
3,940
133,211
KBR Inc.*
4,480
173,690
First Community Bancorp†
2,410
131,851
Manpower, Inc.†
2,680
172,458
Liberty Property Trust
3,270
131,487
Dun & Bradstreet Corp.
1,740
171,581
Nuveen Investments, Inc. —
Crane Co.
3,570
171,253
Class A
2,040
126,358
Copart, Inc.*
4,940
169,887
Cathay General Bancorp†
3,840
123,686
Pentair, Inc.†
5,050
167,559
Potlatch Corp.†
2,700
121,581
Carlisle Cos., Inc.
3,430
166,698
Eaton Vance Corp.
2,890
115,484
DRS Technologies, Inc.†
2,940
162,053
Jones Lang LaSalle, Inc.
1,090
112,008
Con-way, Inc.
3,240
149,040
Horace Mann Educators Corp.
5,670
111,756
AGCO Corp.*
2,880
146,218
Old Republic International Corp.
5,480
102,695
Herman Miller, Inc.
5,100
138,414
Radian Group, Inc.†
3,450
80,316
Oshkosh Truck Corp.†
1,930
119,602
Regency Centers Corp.
1,040
79,820
Nordson Corp.†
2,280
114,479
Cullen/Frost Bankers, Inc.†
1,550
77,686
Korn/Ferry International, Inc.*
5,360
88,494
SVB Financial Group*†
1,620
76,723
Quanta Services, Inc.*†
3,070
81,202
Stancorp Financial Group, Inc.†
1,520
75,255
Fastenal Co.
1,770
80,376
Nationwide Health
MSC Industrial Direct Co. —
Properties, Inc.†
2,350
70,806
Class A
1,580
79,932
First American Corp.
1,880
68,846
Kennametal, Inc.
940
78,941
Macerich Co.
770
67,437
United Rentals, Inc.*
2,390
76,886
New York Community Bancorp,
Stericycle, Inc.*
950
54,302
Inc.†
2,280
43,434
IDEX Corp.
1,470
53,493
Commerce Group, Inc.
1,260
37,132
Harsco Corp.
600
35,562
American Financial Group, Inc.
1,120
31,942
Deluxe Corp.
790
29,104
Fidelity National Financial,
Alliant Techsystems, Inc.*
250
27,325
Inc. — Class A†
1,780
31,114
Trinity Industries, Inc.
710
26,653
IndyMac Bancorp, Inc.
980
23,138
J.B. Hunt Transport Services,
Highwoods Properties, Inc.
460
16,868
Inc.†
900
23,670
FirstMerit Corp.†
240
4,742
Flowserve Corp.
300
22,854
Total Financials
Sequa Corp. — Class A*
80
13,262
4,719,033
Corporate Executive Board Co.
160
11,878
INFORMATION TECHNOLOGY 7.9%
GATX Corp.†
200
8,550
Western Digital Corp.*
10,610
268,645
Total Industrials
4,841,175
Lam Research Corp.*†
4,870
259,376
Arrow Electronics, Inc.*
5,610
238,537
FINANCIALS 8.1%
Harris Corp.
3,950
228,271
AMB Property Corp.†
3,870
231,465
Intersil Corp. — Class A
6,330
211,612
Hospitality Properties Trust†
4,820
195,933
CheckFree Corp.*†
4,280
199,191
Associated Banc-Corp.
6,480
192,003
ADC Telecommunications, Inc.*
8,880
174,137
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
35
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
MID-CAP 1.5x STRATEGY FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Integrated Device Technology,
Regis Corp.
4,050
$
129,235
Inc.*
11,230
$
173,841
Ross Stores, Inc.†
4,960
127,174
Avnet, Inc.*
4,310
171,797
Phillips-Van Heusen Corp.†
2,270
119,130
Vishay Intertechnology, Inc.*
12,310
160,399
Charming Shoppes, Inc.*†
13,740
115,416
Cadence Design Systems, Inc.*†
7,070
156,883
Bob Evans Farms, Inc.
3,760
113,477
Sybase, Inc.*†
6,370
147,338
International Speedway Corp.
Fair Isaac Corp.†
3,990
144,079
— Class A
2,220
101,809
Global Payments, Inc.
2,830
125,143
ITT Educational Services, Inc.*
810
98,569
MPS Group, Inc.*†
10,320
115,068
Collective Brands, Inc.*†
4,360
96,182
CSG Systems International, Inc.*
5,400
114,750
Ruby Tuesday, Inc.
5,210
95,551
Micrel, Inc.
10,590
114,372
DeVry, Inc.
2,580
95,486
Broadridge Financial Solutions,
NVR, Inc.*†
200
94,050
Inc.†
6,020
114,079
Brinker International, Inc.
3,160
86,710
Synopsys, Inc.*
4,180
113,194
Sotheby’s Holdings, Inc. —
Advent Software, Inc.*†
2,390
112,258
Class A†
1,790
85,544
CommScope, Inc.*
2,010
100,982
Foot Locker, Inc.
5,230
80,176
Ceridian Corp.*
2,890
100,399
CarMax, Inc.*†
3,650
74,204
DST Systems, Inc.*
970
83,236
Hanesbrands, Inc.*
2,560
71,834
Amphenol Corp. — Class A†
2,060
81,906
Warnaco Group, Inc.*
1,710
66,810
McAfee, Inc.*
2,140
74,622
M.D.C. Holdings, Inc.
1,620
66,323
F5 Networks, Inc.*
1,970
73,264
Gentex Corp.†
2,990
64,106
Polycom, Inc.*†
2,720
73,059
Callaway Golf Co.
4,000
64,040
Alliance Data Systems Corp.*†
940
72,794
John Wiley & Sons, Inc. —
Macrovision Corp.*†
2,670
65,762
Class A
1,410
63,351
Activision, Inc.*
2,890
62,395
O’Reilly Automotive, Inc.*†
1,830
61,140
CDW Corp.*
690
60,168
Career Education Corp.*
2,180
61,018
SRA International, Inc. —
Aeropostale, Inc.*†
3,070
58,514
Class A*
2,140
60,091
Lee Enterprises, Inc.
3,680
57,298
ValueClick, Inc.*†
2,630
59,070
Tupperware Brands Corp.
1,550
48,810
Fairchild Semiconductor
Petsmart, Inc.†
1,500
47,850
International, Inc.*
3,160
59,029
CBRL Group, Inc.
1,080
44,064
Atmel Corp.*
10,670
55,057
Toll Brothers, Inc.*†
2,130
42,579
MoneyGram International, Inc.
2,060
46,535
Lear Corp.*
1,250
40,125
Jack Henry & Associates, Inc.
1,700
43,962
Rent-A-Center, Inc.*†
2,030
36,804
RF Micro Devices, Inc.*
5,380
36,207
Washington Post Co. — Class B
40
32,112
Cypress Semiconductor Corp.*†
860
25,121
Strayer Education, Inc.†
170
28,667
Imation Corp.
410
10,057
Ryland Group, Inc.†
1,210
25,930
Cree, Inc.*†
150
4,665
Saks, Inc.
1,360
23,324
Gartner, Inc. — Class A*
160
3,914
Blyth, Inc.
900
18,405
Total Information Technology
4,595,265
Urban Outfitters, Inc.*†
840
18,312
CONSUMER DISCRETIONARY 7.5%
Scholastic Corp.*
430
14,990
American Eagle Outfitters, Inc.
9,200
242,052
Dick’s Sporting Goods, Inc.*†
210
14,102
GameStop Corp. — Class A*
3,700
208,495
Williams-Sonoma, Inc.†
120
3,914
Mohawk Industries, Inc.*†
2,440
198,372
Coldwater Creek, Inc.*
180
1,955
Dollar Tree Stores, Inc.*†
4,470
181,214
Total Consumer Discretionary
4,404,164
AnnTaylor Stores Corp.*
4,770
151,066
HEALTH CARE 7.0%
Barnes & Noble, Inc.
4,190
147,739
DENTSPLY International, Inc.
6,540
272,326
BorgWarner, Inc.†
1,600
146,448
Health Net, Inc.*
4,710
254,575
American Greetings Corp. —
Henry Schein, Inc.*
3,820
232,409
Class A
5,420
143,088
Cephalon, Inc.*†
3,080
225,025
Advance Auto Parts, Inc.
4,040
135,582
Intuitive Surgical, Inc.*
970
223,100
Belo Corp. — Class A
7,520
130,547
Invitrogen Corp.*†
2,444
199,748
Thor Industries, Inc.†
2,900
130,471
Edwards Lifesciences Corp.*
3,430
169,133
36
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
MID-CAP 1.5x STRATEGY FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Community Health Systems,
Overseas Shipholding Group,
Inc.*†
5,080
$
159,715
Inc.†
1,600
$
122,928
Endo Pharmaceuticals Holdings,
Arch Coal, Inc.†
3,230
108,980
Inc.*
5,000
155,050
Denbury Resources, Inc.*
2,400
107,256
Varian, Inc.*
2,380
151,392
Newfield Exploration Co.*
1,560
75,130
Steris Corp.†
5,060
138,290
Helmerich & Payne, Inc.
2,230
73,211
Techne Corp.*†
2,090
131,837
Superior Energy Services*
1,960
69,462
LifePoint Hospitals, Inc.*†
4,380
131,444
Pioneer Natural Resources Co.†
1,050
47,229
Cytyc Corp.*
2,720
129,608
Forest Oil Corp.*†
890
38,306
Sepracor, Inc.*†
4,420
121,550
Bill Barrett Corp.*†
530
20,887
Apria Healthcare Group, Inc.*†
4,330
112,623
Total Energy
3,031,740
Perrigo Co.†
5,080
108,458
WellCare Health Plans, Inc.*
1,020
UTILITIES 4.0%
107,539
Lincare Holdings, Inc.*
Alliant Energy Corp.†
2,740
100,421
5,490
210,377
Psychiatric Solutions, Inc.*
Energy East Corp.
7,700
208,285
2,480
97,414
Sierra Pacific Resources
11,860
186,558
VCA Antech, Inc.*
2,280
95,190
Covance, Inc.*†
1,160
90,364
AGL Resources, Inc.
4,520
179,082
Puget Energy, Inc.
6,880
168,354
Advanced Medical Optics, Inc.*
2,940
89,935
Equitable Resources, Inc.
3,200
165,984
Vertex Pharmaceuticals, Inc.*
2,280
87,575
MDU Resources Group, Inc.
5,330
148,387
Charles River Laboratories
National Fuel Gas Co.†
International, Inc.*†
3,070
143,707
1,250
70,187
PDL BioPharma, Inc.*
2,630
WGL Holdings, Inc.
4,190
141,999
56,834
Ventana Medical Systems, Inc.*
640
54,982
Westar Energy, Inc.
5,770
141,711
Kyphon, Inc.*
710
49,700
Pepco Holdings, Inc.
5,050
136,754
Aquila, Inc.*†
32,840
131,688
Omnicare, Inc.
1,370
45,388
Black Hills Corp.†
Par Pharmaceutical Cos., Inc.*
2,310
42,874
3,050
125,111
Hillenbrand Industries, Inc.
650
35,763
Oneok, Inc.
2,410
114,234
Millennium Pharmaceuticals,
SCANA Corp.†
1,670
64,696
Inc.*†
3,280
33,292
Wisconsin Energy Corp.
1,000
45,030
Northeast Utilities†
Valeant Pharmaceuticals
880
25,142
Aqua America, Inc.†
100
2,268
International*†
1,860
28,793
NSTAR
40
Beckman Coulter, Inc.†
360
26,554
1,392
Cerner Corp.*†
310
18,541
Total Utilities
2,340,759
Pharmaceutical Product
MATERIALS 3.8%
Development, Inc.
400
14,176
Lyondell Chemical Co.
5,340
247,509
Gen-Probe, Inc.*
130
8,655
Lubrizol Corp.
3,420
222,505
Health Management Associates,
Carpenter Technology Corp.
1,500
195,015
Inc. — Class A
590
4,095
Cytec Industries, Inc.
2,410
164,820
Total Health Care
4,074,555
Cabot Corp.
4,420
157,042
Sonoco Products Co.
4,960
149,693
ENERGY 5.2%
Noble Energy, Inc.
5,110
357,904
Albemarle Corp.
3,220
142,324
Reliance Steel & Aluminum Co.
2,340
132,304
Cameron International Corp.*†
2,940
271,333
Pride International, Inc.*†
6,870
251,098
Ferro Corp.
5,970
119,281
Martin Marietta Materials, Inc.†
880
117,524
Grant Prideco, Inc.*†
4,540
247,521
Patterson-UTI Energy, Inc.†
8,310
Cleveland-Cliffs, Inc.†
1,070
94,128
187,557
Tidewater, Inc.†
2,830
177,837
Minerals Technologies, Inc.
1,350
90,450
FMC Corp.
1,540
80,111
FMC Technologies, Inc.*
2,820
162,601
Steel Dynamics, Inc.†
1,710
79,857
Southwestern Energy Co.*
3,670
153,590
Plains Exploration & Production
Olin Corp.
3,210
71,840
Co.*†
3,410
150,790
Commercial Metals Co.
2,060
65,199
Florida Rock Industries, Inc.
400
24,996
Frontier Oil Corp.
3,620
150,737
Sensient Technologies Corp.
830
23,962
Exterran Holdings, Inc.*†
1,670
134,168
Pogo Producing Co.
2,320
123,215
Airgas, Inc.
210
10,842
Total Materials
2,189,402
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
37
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
MID-CAP 1.5x STRATEGY FUND
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
VALUE
FACE
VALUE
CONSUMER STAPLES 1.6%
SECURITIES LENDING COLLATERAL 10.9%
Energizer Holdings, Inc.*
1,810
$
200,638
Investment in Securities Lending Short Term
J.M. Smucker Co.†
3,200
170,944
Investment Portfolio Held by
Hormel Foods Corp.
4,090
146,340
U.S. Bank (Note 8)
$ 6,328,730
$
6,328,730
NBTY, Inc.*
3,520
142,912
Universal Corp.†
2,200
Total Securities Lending Collateral
107,690
(Cost $6,328,730)
Hansen Natural Corp.*
1,860
105,425
6,328,730
Alberto-Culver Co.†
1,140
28,261
Total Investments 109.6%
Church & Dwight Co., Inc.†
410
19,286
(Cost $61,323,060)
$ 63,891,627
PepsiAmericas, Inc.
240
7,786
Liabilities in Excess of
BJ’s Wholesale Club, Inc.*
140
4,642
Other Assets – (9.6)%
$ (5,578,285)
Total Consumer Staples
933,924
Net Assets – 100.0%
$ 58,313,342
TELECOMMUNICATION SERVICES 0.5%
UNREALIZED
Telephone & Data Systems, Inc.
3,790
252,982
Cincinnati Bell, Inc.*
6,920
34,185
CONTRACTS
(NOTE 1)
GAIN
Total Telecommunication Services
287,167
FUTURES CONTRACTS PURCHASED
Total Common Stocks
December 2007 S&P MidCap 400 Index
(Cost $28,848,617)
31,417,184
Mini Futures Contracts
(Aggregate Market Value of
AMOUNT
FACE
Contracts $42,483,000)
476
$
1,053,895
REPURCHASE AGREEMENTS 44.8%
UNITS
EQUITY INDEX SWAP AGREEMENT
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
November 2007 S&P MidCap 400 Index
due 10/01/07
$15,038,216
15,038,216
Swap, Terminating 11/20/07**
Lehman Brothers Holdings, Inc.
(Notional Market Value
issued 09/28/07 at 3.90%
$14,248,528)
16,099
$
555,103
due 10/01/07
8,403,006
8,403,006
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
1,769,202
1,769,202
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07††
935,289
935,289
Total Repurchase Agreements
(Cost $26,145,713)
26,145,713
** Price Return based on S&P MidCap 400 Index +/- financing at a variable rate.
* Non-Income Producing Security.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
† 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.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INVERSE MID-CAP STRATEGY FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
REPURCHASE AGREEMENTS 102.2%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$7,145,495
$
7,145,495
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
3,992,737
3,992,737
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07†
1,459,472
1,459,472
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
840,646
840,646
Total Repurchase Agreements
(Cost $13,438,350)
13,438,350
Total Investments 102.2%
(Cost $13,438,350)
$ 13,438,350
Liabilities in Excess of
Other Assets – (2.2)%
$
(295,356)
Net Assets – 100.0%
$ 13,142,994
UNREALIZED
LOSS
CONTRACTS
(NOTE 1)
FUTURES CONTRACTS SOLD SHORT
December 2007 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $267,750)
3
$
(3,959)
UNITS
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
November 2007 S&P MidCap 400 Index
Swap, Terminating 11/20/07*
(Notional Market Value
$12,936,860)
14,617
$
(454,276)
* Price Return based on S&P MidCap 400 Index +/- financing at a variable rate.
† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
39
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET
VALUE
VALUE
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 65.7%
Mid-America Apartment
Communities, Inc.
1,160
$
57,826
FINANCIALS 12.7%
Knight Capital Group, Inc. —
Alexandria Real Estate Equities,
Class A*†
4,820
57,647
Inc.†
1,370
$
131,876
Pacific Capital Bancorp
2,170
57,071
Realty Income Corp.†
4,680
130,806
MB Financial Corp.
1,650
57,007
Nationwide Health Properties,
FelCor Lodging Trust, Inc.†
2,850
56,801
Inc.†
4,080
122,930
Alabama National
Aspen Insurance Holdings Ltd.
4,040
112,756
Bancorporation
720
56,102
Platinum Underwriters Holdings
Citizens Banking Corp.
3,470
55,902
Ltd.†
2,730
98,171
Umpqua Holding Corp.†
2,790
55,828
Digital Realty Trust, Inc.
2,480
97,687
Pennsylvania Real Estate
Apollo Investment Corp.†
4,610
95,888
Investment Trust†
1,430
55,684
Montpelier Re Holdings Ltd.†
5,200
92,040
Downey Financial Corp.†
960
55,488
National Financial Partners
Argo Group International
Corp.
1,730
91,655
Holdings Ltd.*†
1,250
54,388
IPC Holdings Ltd.
2,970
85,684
Glacier Bancorp, Inc.
2,415
54,386
Senior Housing Properties
Cousins Properties, Inc.†
1,830
53,729
Trust†
3,850
84,931
Selective Insurance Group,
Assured Guaranty Ltd.
3,090
83,955
Inc.†
2,500
53,200
ProAssurance Corp.*
1,520
81,882
Prosperity Bancshares, Inc.
1,600
53,056
UCBH Holdings, Inc.†
4,640
81,107
optionsXpress Holdings, Inc.
2,020
52,803
Delphi Financial Group, Inc. —
RLI Corp.†
920
52,182
Class A†
2,000
80,840
Ares Capital Corp.
3,150
51,251
First Midwest Bancorp, Inc.†
2,290
78,226
International Bancshares Corp.
2,355
51,104
Potlatch Corp.†
1,730
77,902
Cash America International,
South Financial Group, Inc.
3,410
77,543
Inc.†
1,350
50,760
NewAlliance Bancshares, Inc.
5,280
77,510
First Charter Corp.
1,640
49,479
Max Capital Group Ltd.†
2,750
77,110
Ashford Hospitality Trust, Inc.†
4,910
49,346
LaSalle Hotel Properties
1,830
77,006
Provident Financial Services,
Post Properties, Inc.
1,960
75,852
Inc.
2,990
48,946
DiamondRock Hospitality Co.†
4,330
75,385
American Financial Realty Trust
6,070
48,864
Chittenden Corp.
2,140
75,242
Susquehanna Bancshares, Inc.†
2,410
48,441
Zenith National Insurance
Omega Healthcare Investors,
Corp.†
1,670
74,966
Inc.†
3,115
48,376
National Retail Properties,
Signature Bank*†
1,360
47,913
Inc.†
3,044
74,213
United Community Banks,
Phoenix Cos., Inc.
5,230
73,795
Inc.†
1,930
47,324
Cathay General Bancorp†
2,290
73,761
Odyssey Re Holdings Corp.
1,270
47,130
BioMed Realty Trust, Inc.
3,050
73,505
Provident Bankshares Corp.†
1,495
46,838
FirstMerit Corp.†
3,660
72,322
FNB Corp.†
2,790
46,147
Commerce Group, Inc.
2,440
71,907
Advanta Corp.
1,680
46,066
SVB Financial Group*†
1,500
71,040
Boston Private Financial Holdings,
Strategic Hotels & Resorts, Inc.
3,440
70,830
Inc.†
1,640
45,658
First Niagara Financial
Extra Space Storage, Inc.†
2,950
45,401
Group, Inc.†
4,980
70,467
Equity Lifestyle Properties,
Westamerica Bancorporation†
1,350
67,243
Inc.†
870
45,066
Greater Bay Bancorp
2,350
64,860
Piper Jaffray Cos., Inc.*
840
45,024
Sterling Savings Bank†
2,360
63,508
Wintrust Financial Corp.†
1,030
43,971
First Community Bancorp†
1,150
62,916
Central Pacific Financial Corp.†
1,420
41,464
GFI Group, Inc.*
726
62,523
Inland Real Estate Corp.†
2,660
41,203
Trustmark Corp.†
2,220
62,249
MCG Capital Corp.†
2,830
40,724
Entertainment Properties Trust
1,220
61,976
FirstFed Financial Corp.*†
815
40,383
Lexington Realty Trust†
3,080
61,631
Horace Mann Educators Corp.
2,010
39,617
40
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET
MARKET
VALUE
VALUE
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Universal American
FBL Financial Group, Inc. —
Financial Corp.*
1,730
$
39,461
Class A
580
$
22,904
Sterling Bancshares, Inc.†
3,450
39,365
United America
Portfolio Recovery Associates,
Indemnity Ltd. — Class A*
1,060
22,801
Inc.†
740
39,272
Banco Latinoamericano de
PS Business Parks, Inc.
670
38,090
Exportaciones SA
1,250
22,725
Stifel Financial Corp.*†
650
37,596
Bankunited Financial Corp. —
S&T Bancorp, Inc.
1,160
37,224
Class A†
1,460
22,688
United Fire & Casualty Co.
940
36,745
Corus Bankshares, Inc.†
1,730
22,525
First Bancorp Puerto Rico†
3,860
36,670
Ezcorp, Inc. — Class A*
1,670
22,462
CVB Financial Corp.†
3,080
36,036
Northwest Bancorp, Inc.
770
21,914
National Penn Bancshares,
Harleysville Group, Inc.
670
21,427
Inc.†
2,194
35,892
Cascade Bancorp.†
960
21,370
Financial Federal Corp.†
1,250
35,013
Deerfield Triarc Capital Corp.†
2,360
21,358
Brookline Bancorp, Inc.†
2,900
33,611
Primus Guaranty Ltd.*
2,020
21,250
NBT Bancorp, Inc.
1,540
33,480
MarketAxess Holdings, Inc.*†
1,380
20,700
Infinity Property & Casualty
TierOne Corp.
780
20,647
Corp.
830
33,383
Sun Communities, Inc.
670
20,154
Newcastle Investment Corp.†
1,850
32,597
Banner Corp.
580
19,946
Redwood Trust, Inc.†
980
32,556
Sterling Financial Corp.
1,160
19,894
Medical Properties Trust Inc.
2,300
30,636
Capital Trust, Inc. — Class A†
560
19,880
MFA Mortgage Investments,
First Financial Bancorp†
1,540
19,681
Inc.†
3,780
30,429
Gramercy Capital Corp.
780
19,633
Navigators Group, Inc.*†
560
30,380
Flagstar Bancorp, Inc.†
2,000
19,460
Bank Mutual Corp.†
2,530
29,829
Crystal River Capital, Inc.†
1,150
19,332
Parkway Properties, Inc.
670
29,574
Dollar Financial Corp.*
670
19,115
Cohen & Steers, Inc.
770
28,513
CompuCredit Corp.*†
870
18,888
Hanmi Financial Corp.
1,830
28,347
SWS Group, Inc.
1,040
18,398
NorthStar Realty Finance
WSFS Financial Corp.
290
18,096
Corp.†
2,840
28,201
Kite Realty Group Trust
960
18,048
Chemical Financial Corp.
1,160
28,130
Asta Funding, Inc.†
470
18,010
LandAmerica Financial Group,
BankAtlantic Bancorp, Inc. —
Inc.†
720
28,066
Class A†
2,020
17,513
Cedar Shopping Centers, Inc.
2,020
27,512
Green Bankshares, Inc.
480
17,496
Ramco-Gershenson Properties
First State Bancorporation
870
17,087
Trust
870
27,179
Western Alliance Bancorp,
Pico Holdings, Inc.*
650
27,008
Inc.*†
720
16,970
Anthracite Capital, Inc.†
2,960
26,936
State Auto Financial Corp.
580
16,965
Amcore Financial, Inc.
1,060
26,415
PFF Bancorp, Inc.†
1,060
16,260
Community Bank System, Inc.
1,350
26,352
Ocwen Financial Corp.*†
1,640
15,465
Hilltop Holdings, Inc.*
2,180
25,593
Prospect Capital Corp.†
870
14,807
IBERIABANK Corp.†
480
25,272
JER Investors Trust, Inc.†
1,160
14,442
LTC Properties, Inc.†
1,060
25,090
Capitol Bancorp, Ltd.†
580
14,401
Saul Centers, Inc.
480
24,720
Hercules Technology Growth
Security Capital Assurance
Capital, Inc.†
1,060
14,066
Ltd.†
1,060
24,210
Thomas Weisel Partners Group,
World Acceptance Corp.*
730
24,148
Inc.*
960
13,930
WesBanco, Inc.
960
23,981
CoBiz Financial, Inc.
770
13,182
RAIT Financial Trust†
2,880
23,702
NexCen Brands, Inc.*
1,930
12,970
Anchor BanCorp Wisconsin,
Midwest Banc Holdings, Inc.†
870
12,850
Inc.
870
23,490
W Holding Co., Inc.†
5,300
11,872
Texas Capital Bancshares, Inc.*
1,060
23,044
Anworth Mortgage Asset Corp.†
2,137
11,518
Columbia Banking Systems,
U.S.B. Holding Co.†
480
11,150
Inc.†
720
22,910
Arbor Realty Trust, Inc.
580
10,956
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
41
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET
MARKET
VALUE
VALUE
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Resource Capital Corp.†
960
$
10,810
RF Micro Devices, Inc.*
9,050
$
60,906
Franklin Bank Corp.*
1,160
10,672
Lawson Software, Inc.*
6,040
60,460
Independent Bank Corp.
960
10,608
Macrovision Corp.*†
2,450
60,343
Triad Guaranty, Inc.*†
520
9,864
Mentor Graphics Corp.*†
3,950
59,645
Irwin Financial Corp.
870
9,587
Semtech Corp.*
2,890
59,187
Resource America, Inc —
Blackboard, Inc.*†
1,290
59,134
Class A
580
9,158
Progress Software Corp.*†
1,890
57,267
Security Bank Corp.
670
8,388
Dycom Industries, Inc.*†
1,840
56,359
Total Financials
7,686,243
Amkor Technology, Inc.*†
4,870
56,102
INFORMATION TECHNOLOGY 12.3%
Insight Enterprises, Inc.*
2,170
56,008
54,054
Flir Systems, Inc.*†
3,050
168,939
Synaptics, Inc.*†
1,160
55,402
ON Semiconductor Corp.*†
11,309
142,041
Quest Software, Inc.*
3,150
Itron, Inc.*†
1,415
131,694
Entegris, Inc.*
6,210
53,903
Equinix, Inc.*
1,445
128,157
Comtech Telecommunications
Ansys, Inc.*†
3,555
121,474
Corp.*†
1,000
53,490
Micros Systems, Inc.*†
1,840
119,729
Concur Technologies, Inc.*†
1,680
52,954
Foundry Networks, Inc.*†
6,720
119,414
MPS Group, Inc.*†
4,720
52,628
Nuance Communications, Inc.*†
6,050
116,825
FEI Co.*†
1,640
51,545
Polycom, Inc.*†
4,210
113,081
SRA International, Inc. —
Anixter International, Inc.*†
1,370
112,956
Class A*
1,830
51,386
ValueClick, Inc.*†
4,610
103,541
Brooks Automation, Inc.*
3,530
50,267
Andrew Corp.*
7,190
99,581
Technitrol, Inc.
1,850
49,857
Sybase, Inc.*†
4,255
98,418
Netgear, Inc.*
1,560
47,455
Formfactor, Inc.*†
2,140
94,952
Checkpoint Systems, Inc.*†
1,780
46,974
45,931
Jack Henry & Associates, Inc.
3,660
94,648
Blue Coat Systems, Inc.*
590
46,468
Parametric Technology Corp.*
5,300
92,326
United Online, Inc.†
3,060
3Com Corp.*
18,110
89,463
ATMI, Inc.*
1,540
45,815
Digital River, Inc.*
1,900
85,025
Rofin-Sinar Technologies, Inc.*
650
45,636
Tessera Technologies, Inc.*†
2,220
83,250
Coherent, Inc.*
1,410
45,233
PMC - Sierra, Inc.*†
9,910
83,145
Cabot Microelectronics Corp.*
1,040
44,460
Benchmark Electronics, Inc.*†
3,370
80,442
MKS Instruments, Inc.*†
2,330
44,317
Palm, Inc.*†
4,800
78,096
InterDigital, Inc.*†
2,110
43,846
Atheros Communications, Inc.*
2,565
76,873
Omniture, Inc.*
1,440
43,661
CSG Systems International, Inc.*
THQ, Inc.*
3,075
76,813
MAXIMUS, Inc.
1,000
43,580
Emulex Corp.*
3,910
74,955
2,020
42,925
j2 Global Communications,
Trident Microsystems, Inc.*†
2,590
41,155
Inc.*†
2,290
74,952
Vasco Data Security
TIBCO Software, Inc.*†
9,660
71,387
International*†
1,160
40,960
CACI International, Inc. —
Standard Microsystems Corp.*
1,060
40,725
Class A*†
1,380
70,504
Imation Corp.
1,640
40,229
Electronics for Imaging, Inc.*†
2,620
70,373
Websense, Inc.*
2,020
39,855
Perot Systems Corp. —
Ariba, Inc.*
3,650
39,347
Class A*
3,990
67,471
Epicor Software Corp.*
2,700
37,179
Avocent Corp.*
2,310
67,267
Ultimate Software Group, Inc.*
1,060
36,994
Skyworks Solutions, Inc.*†
7,420
67,077
Littelfuse, Inc.*
1,020
36,404
Wright Express Corp.*†
1,800
65,682
Advent Software, Inc.*†
770
36,167
Euronet Worldwide, Inc.*†
2,120
63,112
Sycamore Networks, Inc.*
8,570
34,880
Cymer, Inc.*
1,640
62,960
Manhattan Associates, Inc.*
1,250
34,262
Informatica Corp.*†
4,010
62,957
SPSS, Inc.*†
820
33,735
DealerTrack Holdings, Inc.*†
1,500
62,820
Black Box Corp.†
770
32,925
Arris Group, Inc.*
5,080
62,738
ViaSat, Inc.*
1,060
32,680
ADTRAN, Inc.
2,715
62,526
MicroStrategy, Inc. — Class A*
410
32,529
Plantronics, Inc.†
2,180
62,239
42
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
VALUE
MARKET
VALUE
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Electro Scientific Industries,
Supertex, Inc.*
480
$
19,142
Inc.*
1,350
$
32,346
Rudolph Technologies, Inc.*†
1,350
18,671
Hittite Microwave Corp.*
730
32,229
Art Technology Group, Inc.*
5,970
18,029
RealNetworks, Inc.*
4,720
32,002
Heartland Payment Systems,
Rogers Corp.*
770
31,716
Inc.†
690
17,733
Sirenza Microdevices, Inc.*
1,810
31,295
SI International, Inc.*
600
17,142
Novatel Wireless, Inc.*
1,380
31,257
EPIQ Systems, Inc.*
910
17,126
Mantech International Corp. —
Ness Technologies, Inc.*
1,540
16,817
Class A*
860
30,943
Smart Modular Technologies
CMGI, Inc.*
22,730
30,913
WWH, Inc.*
2,310
16,517
Park Electrochemical Corp.†
920
30,894
Rackable Systems, Inc.*†
1,250
16,213
Quantum Corp.*
9,050
30,770
Intevac, Inc.*
980
14,896
Cogent, Inc.*†
1,940
30,419
Greenfield Online, Inc.*
960
14,640
AMIS Holdings, Inc.*
3,060
29,713
infoUSA, Inc. — Class B
1,440
13,378
Faro Technologies, Inc.*
670
29,581
Visual Sciences, Inc.*†
870
12,563
KEMET Corp.*
3,900
28,665
Marchex, Inc.†
1,250
11,888
Veeco Instruments, Inc.*
1,440
27,907
TheStreet.com, Inc.†
960
11,626
Micrel, Inc.
2,580
27,864
STEC, Inc.*
1,440
10,987
Mastec, Inc.*
1,910
26,874
Gevity HR, Inc.
1,060
10,865
The Knot, Inc.*
1,250
26,575
Imergent, Inc.†
480
10,766
Cirrus Logic, Inc.*
4,100
26,240
LivePerson, Inc.*
1,640
10,102
SonicWALL, Inc.*
2,990
26,103
AsiaInfo Holdings, Inc.*
390
3,533
C-COR, Inc.*
2,250
25,853
LoopNet, Inc.*
Total Information Technology
7,387,803
1,250
25,675
SYKES Enterprises, Inc.*
1,530
25,413
CONSUMER DISCRETIONARY 9.7%
Vignette Corp.*
Chipotle Mexican Grill, Inc.*
1,510
161,570
1,260
25,288
Priceline.com, Inc.*†
Methode Electronics, Inc. —
1,700
150,875
Sotheby’s Holdings, Inc. —
Class A
1,620
24,381
Agilysys, Inc.
Class A†
3,085
147,432
1,440
24,336
Advanced Energy Industries,
Tempur-Pedic International,
Inc.†
3,855
137,816
Inc.*
1,590
24,009
Men’s Wearhouse, Inc.†
2,490
125,795
JDA Software Group, Inc.*
1,160
23,966
Newport Corp.*†
1,540
23,454
Lear Corp.*†
3,490
112,029
Strayer Education, Inc.†
650
Kulicke & Soffa Industries, Inc.*
2,670
22,642
109,609
S1 Corp.*
2,490
22,535
DeVry, Inc.
2,730
101,037
TTM Technologies, Inc.*
1,930
22,330
Gaylord Entertainment Co.*
1,890
100,586
Jack in the Box, Inc.*
1,450
94,018
Smith Micro Software, Inc.*†
1,380
22,163
Photronics, Inc.*
1,930
22,021
Tupperware Brands Corp.
2,820
88,802
Stratasys, Inc.*†
Vail Resorts, Inc.*†
1,380
85,960
780
21,497
Exar Corp.*
1,640
21,418
Bally Technologies Inc.*
2,410
85,386
Warnaco Group, Inc.*
2,140
83,610
Global Cash Access Holdings,
Gemstar-TV Guide
Inc.*
2,020
21,392
International, Inc.*
Authorize.Net Holdings, Inc.*
11,665
81,188
1,210
21,332
CTS Corp.
1,640
21,156
Fossil, Inc.*
1,980
73,973
J. Crew Group, Inc.*†
Extreme Networks, Inc.*
5,490
21,082
1,775
73,662
Adaptec, Inc.*
Polaris Industries, Inc.†
1,640
71,537
5,490
20,972
Cooper Tire & Rubber Co.
2,830
69,052
Internet Capital Group, Inc.*
1,730
20,760
Belo Corp. — Class A
Bankrate, Inc.*†
450
20,754
3,940
68,398
Wolverine World Wide, Inc.†
2,480
67,952
Mattson Technology, Inc.*
2,360
20,414
Aeropostale, Inc.*†
Chordiant Software, Inc.*
1,460
20,236
3,495
66,615
DSP Group, Inc.*
1,250
19,788
American Greetings Corp. —
Class A
2,500
Cohu, Inc.
1,050
19,688
66,000
Collective Brands, Inc.*†
2,960
65,298
Immersion Corp.*
1,200
19,656
Under Armour, Inc.*†
Ciber, Inc.*
2,500
19,525
1,060
63,409
Regis Corp.
1,980
63,182
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
43
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Arbitron, Inc.
1,390
$
63,023
Columbia Sportswear Co.
560
$
30,974
Matthews International Corp. —
Drew Industries, Inc.*
750
30,510
Class A
1,420
62,196
Morningstar, Inc.*
490
30,086
WMS Industries, Inc.*
1,840
60,904
Entercom Communications
Deckers Outdoor Corp.*
540
59,292
Corp.
1,520
29,382
Rent-A-Center, Inc.*†
3,270
59,285
Sealy Corp.†
2,065
28,993
Marvel Entertainment, Inc.*†
2,510
58,834
Entravision Communications
Iconix Brand Group, Inc.*
2,350
55,906
Corp. — Class A*
3,140
28,951
Carter’s, Inc.*
2,700
53,865
RC2 Corp.*†
990
27,413
Callaway Golf Co.†
3,360
53,794
Cato Corp. — Class A†
1,340
27,390
Scholastic Corp.*
1,540
53,684
Sinclair Broadcast Group, Inc. —
American Axle & Manufacturing
Class A†
2,260
27,210
Holdings, Inc.†
2,080
52,520
Helen of Troy Ltd.*†
1,400
27,034
Rare Hospitality International,
Jos. A. Bank Clothiers, Inc.*†
790
26,402
Inc.*
1,350
51,448
Media General, Inc.
950
26,135
IHOP Corp.†
800
50,664
K-Swiss, Inc. — Class A
1,140
26,117
Blue Nile, Inc.*†
530
49,884
PEP Boys-Manny Moe & Jack
1,840
25,815
Bright Horizons Family Solutions,
Ambassadors Group, Inc.
650
24,765
Inc.*
1,160
49,694
Shuffle Master, Inc.*†
1,640
24,518
Gymboree Corp.*†
1,400
49,336
Buffalo Wild Wings, Inc.*
650
24,518
Charter Communications, Inc. —
Jo-Ann Stores, Inc.*
1,160
24,476
Class A*†
18,970
48,943
Spartan Motors, Inc.†
1,440
24,235
Bob Evans Farms, Inc.
1,610
48,590
Oxford Industries, Inc.
670
24,200
Blockbuster, Inc. — Class A*†
8,960
48,115
Blyth, Inc.
1,160
23,722
Charming Shoppes, Inc.*†
5,680
47,712
Speedway Motorsports, Inc.
640
23,680
Aaron Rents, Inc.
2,120
47,276
Buckle, Inc.
620
23,523
Interactive Data Corp.
1,640
46,248
Papa John’s International, Inc.*
960
23,462
CKE Restaurants, Inc.†
2,850
46,198
Movado Group, Inc.
710
22,663
CBRL Group, Inc.†
1,130
46,104
Furniture Brands International,
Ruby Tuesday, Inc.
2,500
45,850
Inc.†
2,220
22,511
Netflix, Inc.*†
2,120
43,926
Asbury Automotive Group,
Cabela’s, Inc. — Class A*†
1,730
40,914
Inc.†
1,130
22,385
Brown Shoe Co., Inc.
2,020
39,188
Unifirst Corp.
580
21,727
Champion Enterprises, Inc.*†
3,560
39,089
CSK Auto Corp.*
1,970
20,981
Modine Manufacturing Co.
1,440
38,333
Kellwood Co.
1,200
20,460
Jackson Hewitt Tax Service,
AFC Enterprises, Inc.*
1,350
20,318
Inc.†
1,350
37,746
Journal Communications,
Stage Stores, Inc.
2,020
36,825
Inc. — Class A
2,120
20,098
Sally Beauty Holdings, Inc.*†
4,350
36,757
Cox Radio Inc. — Class A*
1,540
20,097
Triarc Cos., Inc. — Class B
2,890
36,154
Universal Electronics, Inc.*
610
19,825
Stewart Enterprises, Inc. —
Premier Exhibitions, Inc.*†
1,290
19,453
Class A
4,740
36,119
Valassis Communications,
Dress Barn, Inc.*
2,120
36,061
Inc.*†
2,160
19,267
Group 1 Automotive, Inc.†
1,060
35,584
Skechers U.S.A., Inc. —
Citadel Broadcasting Corp.†
8,430
35,069
Class A*
870
19,227
Winnebago Industries, Inc.†
1,460
34,865
Monaco Coach Corp.
1,340
18,800
CEC Entertainment, Inc.*
1,250
33,587
Fred’s, Inc.†
1,780
18,743
Steiner Leisure Ltd.*
770
33,418
Big 5 Sporting Goods Corp.
990
18,513
Jakks Pacific, Inc.*
1,240
33,120
Marcus Corp.
960
18,432
Red Robin Gourmet Burgers,
Exide Technologies*†
2,790
18,135
Inc.*†
770
33,033
Hayes Lemmerz International,
Aftermarket Technology Corp.*
1,020
32,375
Inc.*
4,330
18,013
Sonic Automotive, Inc.
1,350
32,319
DSW, Inc.*†
710
17,871
Lee Enterprises, Inc.
2,060
32,074
Denny’s Corp.*
4,330
17,320
44
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
La-Z-Boy, Inc.†
2,310
$
17,048
Actuant Corp. — Class A†
1,180
$
76,665
Charlotte Russe Holding, Inc.*
1,160
16,982
JetBlue Airways Corp.*†
8,280
76,342
Jamba, Inc.*†
2,410
16,942
SkyWest, Inc.
3,000
75,510
Amerigon, Inc.*
960
16,618
Regal-Beloit Corp.†
1,440
68,962
RCN Corp.*
1,350
16,605
Geo Group, Inc.*
2,310
68,399
Steven Madden, Ltd.
870
16,487
Perini Corp.*
1,210
67,675
Standard-Pacific Corp.†
2,990
16,415
United Stationers, Inc.*
1,200
66,624
Gray Television, Inc.
1,930
16,386
Barnes Group, Inc.†
2,070
66,074
Meritage Homes Corp.*†
1,160
16,379
Mueller Water Products, Inc. —
Lin TV Corp. — Class A*
1,250
16,263
Class A†
5,300
65,667
O’Charleys, Inc.
1,060
16,070
IKON Office Solutions, Inc.
5,010
64,378
Global Sources Ltd.*
670
14,854
Esterline Technologies Corp.*†
1,120
63,896
Casual Male Retail Group,
Hexcel Corp.*†
2,810
63,815
Inc.*
1,640
14,694
Mueller Industries, Inc.
1,640
59,270
World Wrestling Entertainment,
Applied Industrial Technologies,
Inc.
960
14,477
Inc.†
1,920
59,194
Building Material Holding
Heico Corp.†
1,160
57,258
Corp.†
1,350
14,283
Tetra Tech, Inc.*†
2,680
56,602
Beazer Homes USA, Inc.†
1,730
14,273
Astec Industries, Inc.*
956
54,922
Monarch Casino & Resort, Inc.*
480
13,656
Triumph Group, Inc.
670
54,746
Citi Trends, Inc.*†
580
12,621
HUB Group, Inc. — Class A*†
1,790
53,754
McCormick & Schmick’s
Simpson Manufacturing
Seafood Restaurants, Inc.*
670
12,616
Co., Inc.†
1,640
52,234
Multimedia Games, Inc.*†
1,060
9,031
AAR Corp.*†
1,710
51,881
Westwood One, Inc.†
3,250
8,938
Eagle Bulk Shipping, Inc.†
1,930
49,678
MTR Gaming Group, Inc.*
870
8,291
Watsco, Inc.
1,000
46,430
Bluegreen Corp.*
960
7,440
Interface, Inc. — Class A†
2,540
45,847
Total Consumer Discretionary
5,856,431
Horizon Lines, Inc. — Class A†
1,480
45,184
INDUSTRIALS 9.4%
Teletech Holdings, Inc.*
1,860
44,473
Bucyrus International, Inc. —
Watts Industries, Inc. —
Class A†
1,670
121,793
Class A†
1,440
44,208
Washington Group
EDO Corp.
770
43,128
International, Inc.*
1,290
113,275
AirTran Holdings, Inc.*†
4,240
41,722
Belden, Inc.
2,145
100,622
A.O. Smith Corp.
950
41,686
Waste Connections, Inc.*†
3,160
100,362
Knoll, Inc.
2,310
40,979
Acuity Brands, Inc.†
1,960
98,941
Goodman Global, Inc.*†
1,715
40,954
Curtiss-Wright Corp.
2,065
98,087
Labor Ready, Inc.*
2,150
39,796
FTI Consulting, Inc.*†
1,940
97,601
ABM Industries, Inc.
1,970
39,361
38,478
Ceradyne, Inc.*†
1,270
96,190
G & K Services, Inc. — Class A
960
38,592
EMCOR Group, Inc.*
2,965
92,982
Administaff, Inc.
1,060
Deluxe Corp.
2,380
87,679
Healthcare Services Group†
1,885
38,209
Watson Wyatt & Co. Holdings†
1,910
85,835
NCI Building Systems, Inc.*†
880
38,025
Wabtec Corp.†
2,250
84,285
Heartland Express, Inc.†
2,640
37,699
Granite Construction, Inc.
1,585
84,037
EnPro Industries, Inc.*
910
36,946
Teledyne Technologies, Inc.*
1,570
83,822
Werner Enterprises, Inc.
2,120
36,358
1,690
Brady Corp. — Class A†
2,310
82,883
Korn/Ferry International, Inc.*
2,190
36,157
Baldor Electric Co.†
2,055
82,097
Republic Airways Holdings, Inc.*
35,777
GrafTech International Ltd.*
4,590
81,886
Kenexa Corp. — Class A*
1,160
35,705
IHS, Inc.*†
1,430
80,781
RBC Bearings, Inc.*
930
35,665
Clarcor, Inc.
2,350
80,393
II-VI, Inc.*
1,030
35,566
Genlyte Group, Inc.*†
34,241
1,230
79,040
Rollins, Inc.†
1,310
34,964
Herman Miller, Inc.
2,890
78,435
Apogee Enterprises, Inc.
1,320
Moog, Inc. — Class A*
1,760
77,334
Federal Signal Corp.
2,220
34,099
Nordson Corp.†
1,540
77,323
Tennant Co.
700
34,090
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
45
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Arkansas Best Corp.†
1,030
$
33,640
HEALTH CARE 9.1%
School Specialty, Inc.*
960
33,245
Hologic, Inc.*†
2,430
$
148,230
Robbins & Myers, Inc.
580
33,228
Illumina, Inc.*
2,440
126,587
Superior Essex, Inc.*
870
32,434
Inverness Medical Innovations,
Viad Corp.
900
32,400
Inc.*
2,120
117,278
Circor International, Inc.
710
32,241
Immucor, Inc.*†
3,150
112,612
Cascade Corp.
490
31,933
Alexion Pharmaceuticals, Inc.*
1,690
110,103
Old Dominion Freight Line,
BioMarin
Inc.*†
1,310
31,401
Pharmaceuticals, Inc.*†
4,410
109,809
Pacer International, Inc.
1,640
31,242
MGI Pharma, Inc.*†
3,680
102,230
Layne Christensen Co.*
550
30,514
Myriad Genetics, Inc.*†
1,960
102,214
Heidrick & Struggles
Psychiatric Solutions, Inc.*†
2,500
98,200
International, Inc.*
810
29,524
Onyx Pharmaceuticals, Inc.*†
2,190
95,309
Cubic Corp.
690
29,097
OSI Pharmaceuticals, Inc.*†
2,640
89,734
Atlas Air Worldwide Holdings
Alkermes, Inc.*†
4,675
86,020
Co., Inc.*
550
28,396
Varian, Inc.*
1,350
85,873
Interline Brands, Inc.*
1,200
27,588
AMERIGROUP Corp.*†
2,440
84,131
Consolidated Graphics, Inc.*
430
27,000
Healthways, Inc.*†
1,540
83,114
Navigant Consulting, Inc.*
2,120
26,839
Medarex, Inc.*†
5,850
82,836
Raven Industries, Inc.†
670
26,834
Steris Corp.†
3,000
81,990
DynCorp International, Inc. —
Affymetrix, Inc.*†
3,165
80,296
Class A*
1,160
26,808
Bio-Rad Laboratories, Inc. —
Encore Wire Corp.†
1,040
26,135
Class A*
870
78,735
Ennis Inc.
1,130
24,905
Medicis Pharmaceutical Corp. —
Tredegar Corp.
1,440
24,840
Class A†
2,535
77,343
NACCO Industries, Inc. —
Perrigo Co.†
3,550
75,793
Class A
240
24,835
Magellan Health Services, Inc.*
1,790
72,638
M&F Worldwide Corp.*
490
24,593
Owens & Minor, Inc.†
1,890
71,990
American Reprographics Co.*
1,310
24,523
Align Technology, Inc.*†
2,735
69,278
American Science & Engineering,
Valeant Pharmaceuticals
Inc.†
390
24,437
International*†
4,475
69,273
Rush Enterprises, Inc. — Class A*
960
24,336
Allscripts Healthcare
CRA International, Inc.*†
480
23,131
Solutions, Inc.*†
2,545
68,791
Universal Forest Products, Inc.
760
22,724
ArthroCare Corp.*†
1,230
68,745
Spherion Corp.*
2,600
21,476
Chemed Corp.†
1,105
68,687
Gibraltar Industries, Inc.
1,160
21,460
Dionex Corp.*
840
66,746
Lindsay Manufacturing Co.
480
21,014
United Therapeutics Corp.*†
930
61,882
Kelly Services, Inc.
1,060
20,999
West Pharmaceutical Services,
Bowne & Co., Inc.
1,250
20,825
Inc.
1,440
59,990
Griffon Corp.*
1,350
20,385
Haemonetics Corp.*
1,210
59,798
Columbus McKinnon Corp. —
PSS World Medical, Inc.*
3,080
58,920
Class A*
810
20,161
Cepheid, Inc.*
2,490
56,772
TransDigm Group, Inc.*
430
19,655
LifeCell Corp.*†
1,510
56,731
Blount International, Inc.*
1,730
19,653
American Medical Systems
Kforce, Inc.*
1,440
18,518
Holdings, Inc.*†
3,310
56,105
Freightcar America, Inc.
480
18,336
PolyMedica Corp.
1,060
55,671
Greenbrier Cos., Inc.†
670
17,896
NuVasive, Inc.*
1,540
55,332
EnerSys*
980
17,415
Meridian Bioscience, Inc.
1,820
55,182
TAL International Group, Inc.
670
16,797
Cubist Pharmaceuticals, Inc.*†
2,540
53,670
Wabash National Corp.†
1,350
15,242
Pharmion Corp.*†
1,150
53,061
Houston Wire & Cable Co.†
770
13,945
Apria Healthcare Group, Inc.*†
2,010
52,280
Celadon Group, Inc.*†
1,060
12,476
Parexel International Corp.*
1,250
51,588
Insteel Industries, Inc.
770
11,820
Regeneron Pharmaceuticals,
Total Industrials
5,650,464
Inc.*
2,890
51,442
46
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET
MARKET
VALUE
VALUE
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Applera Corp. — Celera
Cypress Bioscience, Inc.*†
1,640
$
22,452
Group*†
3,600
$
50,616
Air Methods Corp.*
480
22,176
Thoratec Corp.*
2,410
49,863
Palomar Medical Technologies,
Eclipsys Corp.*
2,130
49,672
Inc.*
770
21,937
Exelixis, Inc.*†
4,500
47,655
ICU Medical, Inc.*†
560
21,700
Alnylam Pharmaceuticals,
Seattle Genetics, Inc.*†
1,930
21,693
Inc.*†
1,440
47,189
OraSure Technologies, Inc.*
2,120
21,306
KV Pharmaceutical Co.*†
1,640
46,904
Molina Healthcare, Inc.*
580
21,037
XenoPort, Inc.*
960
45,168
Kendle International, Inc.*†
500
20,765
Omnicell, Inc.*
1,560
44,522
Omrix Biopharmaceuticals,
Wright Medical Group, Inc.*
1,640
43,985
Inc.*†
580
20,480
Amedisys, Inc.*†
1,130
43,415
eResearch Technology, Inc.*
1,730
19,705
Medicines Co.*
2,410
42,922
Datascope Corp.
580
19,610
Centene Corp.*
1,970
42,375
Noven Pharmaceuticals, Inc.*
1,160
18,479
Alpharma, Inc. — Class A†
1,970
42,079
Angiodynamics, Inc.*
960
18,096
Healthspring, Inc.*
2,150
41,925
Volcano Corp.*
1,060
17,426
Martek Biosciences Corp.*†
1,440
41,803
Neurocrine Biosciences, Inc.*†
1,730
17,300
Sciele Pharma, Inc.*†
1,570
40,851
Vanda Pharmaceuticals, Inc.*†
1,160
16,136
HealthExtras, Inc.*
1,465
40,771
Ariad Pharmaceuticals, Inc.*†
3,180
14,723
Integra LifeSciences Holdings
CytRx Corp.*†
4,050
14,013
Corp.*†
830
40,321
Nabi Biopharmaceuticals*
2,790
11,327
Phase Forward, Inc.*
1,880
37,619
Total Health Care
5,482,921
Nektar Therapeutics*†
4,240
37,439
Analogic Corp.
580
36,981
ENERGY 4.0%
Exterran Holdings, Inc.*†
2,727
219,087
Conmed Corp.*
1,310
36,667
The Trizetto Group, Inc.*†
2,020
35,370
PetroHawk Energy Corp.*†
7,870
129,225
Oil States International, Inc.*†
Savient Pharmaceuticals, Inc.*
2,430
35,357
2,210
106,743
Hercules Offshore*†
AmSurg Corp.*
1,350
31,145
3,870
101,046
W-H Energy Services, Inc.*
1,360
100,300
SurModics, Inc.*†
620
30,386
Atwood Oceanics, Inc.*†
1,225
93,786
Par Pharmaceutical Cos., Inc.*
1,600
29,696
Dendreon Corp.*†
3,850
29,607
Whiting Petroleum Corp.*
1,930
85,788
AMN Healthcare Services, Inc.*
1,540
28,844
Mariner Energy, Inc.*†
4,010
83,047
Viropharma, Inc.*
3,235
Penn Virginia Corp.
1,700
74,766
28,792
Alpha Natural Resources, Inc.*
2,990
69,458
Sirona Dental Systems, Inc.*†
770
27,466
Comstock Resources, Inc.*†
2,020
62,297
Symmetry Medical, Inc.*
1,640
27,388
Salix Pharmaceuticals Ltd.*†
2,180
27,076
Grey Wolf, Inc.*
8,570
56,133
Bruker BioSciences Corp.*
2,990
26,312
Bill Barrett Corp.*†
1,404
55,332
Swift Energy Co.*
1,350
55,242
Halozyme Therapeutics, Inc.*
2,990
25,983
Quidel Corp.*
1,320
25,819
World Fuel Services Corp.
1,290
52,645
Greatbatch, Inc.*†
950
25,261
Atlas America, Inc.
1,010
52,146
GulfMark Offshore, Inc.*
1,050
51,093
PharmaNet Development Group,
Inc.*†
870
25,256
Stone Energy Corp.*
1,250
50,012
Nordic American Tanker
Cross Country Healthcare, Inc.*
1,440
25,157
Matria Healthcare, Inc.*
960
25,114
Shipping†
1,250
49,050
EXCO Resources, Inc.*
2,790
46,147
Kindred Healthcare, Inc.*
1,400
25,074
Rosetta Resources, Inc.*†
2,300
42,182
Vital Signs, Inc.
480
25,027
Parker Drilling Co.*†
5,190
42,143
Geron Corp.*†
3,370
24,668
Res-Care, Inc.*
1,060
24,210
USEC, Inc.*†
4,040
41,410
NATCO Group, Inc.*†
770
39,847
InterMune, Inc.*†
1,250
23,913
Complete Production Services,
HMS Holdings Corp.*
960
23,626
Inc.*
1,930
39,526
SonoSite, Inc.*†
770
23,500
Gentiva Health Services, Inc.*
1,210
23,244
Basic Energy Services, Inc.*†
1,830
38,467
FoxHollow Technologies, Inc.*
870
22,968
Ship Finance International Ltd.†
1,450
38,092
Zoll Medical Corp.*
870
22,550
Lufkin Industries, Inc.
680
37,414
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
47
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET
VALUE
VALUE
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Golar LNG Ltd.†
1,530
$
34,150
Amcol International Corp.†
1,160
$
38,384
Pioneer Drilling Co.*
2,310
28,136
NewMarket Corp.
670
33,085
Petroleum Development
PolyOne Corp.*
4,330
32,345
Corp.*†
610
27,054
Glatfelter
2,020
29,977
International Coal Group, Inc.*†
5,880
26,107
Headwaters, Inc.*†
1,830
27,230
Dawson Geophysical Co.*
330
25,578
Buckeye Technologies, Inc.*
1,760
26,646
Matrix Service Co.*
1,220
25,559
Calgon Carbon Corp.*†
1,830
25,547
Uranium Resources, Inc.*
2,410
22,630
Innospec, Inc.
1,060
24,147
Newpark Resources, Inc.*
4,140
22,190
Spartech Corp.
1,410
24,055
Allis-Chalmers Energy, Inc.*†
1,160
21,970
A. Schulman, Inc.
1,180
23,281
Contango Oil & Gas Co.*
580
20,996
Wausau Paper Corp.
2,020
22,523
Harvest Natural Resources, Inc.*
1,740
20,776
Neenah Paper, Inc.
650
21,509
Knightsbridge Tankers Ltd.†
770
20,713
Stillwater Mining Co.*
1,930
19,860
Gulfport Energy Corp.*
870
20,584
Olympic Steel, Inc.†
390
10,592
Alon USA Energy, Inc.†
590
19,930
Total Materials
2,192,926
Energy Partners Ltd.*
1,250
18,350
UTILITIES 2.0%
GMX Resources, Inc.*†
530
17,050
VeraSun Energy Corp.*†
1,440
15,840
Westar Energy, Inc.
4,091
100,472
Pacific Ethanol, Inc.*†
1,640
15,777
ITC Holdings Corp.
1,930
95,631
Nicor, Inc.†
2,070
88,803
Bois d’Arc Energy, Inc.*
770
14,761
Double Hull Tankers, Inc.
960
14,294
PNM Resources, Inc.†
3,500
81,480
Aventine Renewable Energy
WGL Holdings, Inc.
2,220
75,236
Holdings, Inc.*
1,350
14,270
Aquila, Inc.*†
17,430
69,894
Cleco Corp.
2,750
69,492
Callon Petroleum Co.*
960
13,363
Black Hills Corp.†
1,670
68,503
Delek US Holdings, Inc.
520
13,042
Total Energy
New Jersey Resources Corp.†
1,230
60,996
2,385,544
Southwest Gas Corp.
1,930
54,600
MATERIALS 3.6%
Northwest Natural Gas Co.†
1,170
53,469
CF Industries Holdings, Inc.
2,570
195,089
Allete, Inc.†
1,180
52,817
Terra Industries, Inc.*†
4,275
133,636
Avista Corp.
2,430
49,451
AptarGroup, Inc.†
3,205
121,373
South Jersey Industries, Inc.
1,410
49,068
Hercules, Inc.†
5,420
113,928
El Paso Electric Co.*
2,115
48,920
Texas Industries, Inc.†
1,196
93,886
NorthWestern Corp.
1,640
44,559
Greif, Inc. — Class A†
1,520
92,234
Portland General Electric Co.
1,350
37,530
H.B. Fuller Co.†
2,800
83,104
Mge Energy, Inc.
960
32,102
RTI International Metals, Inc.*
1,015
80,449
Laclede Group, Inc.
960
30,989
Quanex Corp.†
1,680
78,926
Consolidated Water Co., Inc.†
580
17,412
Olin Corp.
3,370
75,421
Central Vermont Public Service
Worthington Industries, Inc.†
3,180
74,921
Corp.
390
14,251
Schnitzer Steel Industries,
Inc. — Class A†
940
68,893
Total Utilities
1,195,675
Sensient Technologies Corp.
2,180
62,937
CONSUMER STAPLES 1.9%
Central European Distribution
Metal Management, Inc.
1,160
62,872
Minerals Technologies, Inc.
870
58,290
Corp.*†
1,610
77,135
Silgan Holdings, Inc.
1,080
58,050
Flowers Foods, Inc.
3,500
76,300
Rockwood Holdings, Inc.*†
Ralcorp Holdings, Inc.*
1,190
1,570
56,253
66,426
Brush Engineered Materials,
Casey’s General Stores, Inc.
2,310
63,987
Pilgrim’s Pride Corp.
1,800
62,514
Inc.*
1,000
51,890
Ruddick Corp.†
1,840
61,713
Arch Chemicals, Inc.†
1,060
49,693
Hecla Mining Co.*†
5,530
49,493
Universal Corp.†
1,240
60,698
Rock-Tenn Co. — Class A
1,630
47,107
Hain Celestial Group, Inc.*†
1,790
57,513
Kaiser Aluminum Corp.
650
Chattem, Inc.*†
740
52,185
45,870
Ferro Corp.
2,010
Performance Food Group Co.*
1,610
48,509
40,160
Haynes International, Inc.*
460
39,270
Tootsie Roll Industries, Inc.†
1,640
43,509
TreeHouse Foods, Inc.*
1,380
37,329
48
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
RUSSELL 2000® 1.5x STRATEGY FUND
VALUE
FACE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
Darling International, Inc.*†
3,720
$
36,791
REPURCHASE AGREEMENTS 39.1%
Fresh Del Monte Produce,
Repurchase Agreement (Note 5)
Inc.†
1,250
35,937
Mizuho Financial Group, Inc.
Vector Group Ltd.
1,418
31,766
issued 09/28/07 at 3.96%
Andersons, Inc.†
650
31,213
due 10/01/07
$11,226,871
$ 11,226,871
Sanderson Farms, Inc.†
740
30,836
Lehman Brothers Holdings, Inc.
Elizabeth Arden, Inc.*
1,080
29,117
issued 09/28/07 at 3.90%
Alliance One International,
due 10/01/07
6,273,314
6,273,314
Inc.*
4,450
29,103
Credit Suisse Group
Pantry, Inc.*†
1,060
27,168
issued 09/28/07 at 3.95%
American Oriental Bioengineering,
due 10/01/07††
4,758,934
4,758,934
Inc. PLC*†
2,410
26,871
Morgan Stanley
Great Atlantic & Pacific Tea Co.*†
870
26,500
issued 09/28/07 at 3.80%
WD-40 Co.
730
24,922
due 10/01/07
1,320,808
1,320,808
Nash Finch Co.†
590
23,500
Total Repurchase Agreements
Spartan Stores, Inc.
1,000
22,530
(Cost $23,579,927)
23,579,927
J&J Snack Foods Corp.
580
20,196
Boston Beer Co., Inc. — Class A*
330
16,058
SECURITIES LENDING COLLATERAL 21.4%
Ingles Markets, Inc. — Class A
480
13,757
Investment in Securities Lending Short Term
U.S. Bank (Note 8)
12,878,495
12,878,495
Total Consumer Staples
1,134,083
Investment Portfolio Held by
TELECOMMUNICATION SERVICES 1.0%
Time Warner Telecom, Inc. —
Total Securities Lending Collateral
Class A*†
6,700
147,199
(Cost $12,878,495)
12,878,495
Golden Telecom, Inc.†
710
57,148
Total Investments 126.2%
Cincinnati Bell, Inc.*†
11,485
56,736
(Cost $71,005,432)
$ 76,034,787
Cogent Communications Group,
Liabilities in Excess of
Inc.*†
2,420
56,483
Other Assets – (26.2)%
$ (15,777,975)
Premiere Global Services, Inc.*
3,230
40,860
NTELOS Holdings Corp.
1,280
37,709
Net Assets – 100.0%
$ 60,256,812
Fairpoint Communications, Inc.†
1,640
30,930
General Communication, Inc. —
UNREALIZED
GAIN
Class A*
2,410
29,257
CONTRACTS
(NOTE 1)
Iowa Telecommunications Services,
FUTURES CONTRACTS PURCHASED
Inc.†
1,410
27,989
December 2007 Russell 2000 Index
Alaska Communications Systems
Mini Futures Contracts
Group, Inc.
1,930
27,889
iPCS, Inc. — Class A
770
26,480
(Aggregate Market Value
of Contracts $10,280,650)
127
$
29,693
Syniverse Holdings, Inc.*
1,200
19,080
IDT Corp. — Class B†
2,220
18,581
UNITS
EQUITY INDEX SWAP AGREEMENTS
USA Mobility, Inc.*
1,020
17,207
November 2007 Russell 2000 Index
Centennial Communications
Swap, Terminating 11/20/07**
Corp.*
1,060
10,727
Total Telecommunication Services
604,275
Total Common Stocks
(Notional Market Value
$28,251,987)
35,076
$
349,966
(Cost $34,547,010)
39,576,365
December 2007 Russell 2000 Index
Swap, Terminating 12/28/07**
(Notional Market Value
$12,489,770)
15,507
152,461
(Total Notional Market
Value $40,741,757)
$
502,427
** Price Return based on Russell 2000 Index +/- financing at a variable rate.
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
49
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
RUSSELL 2000® FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 54.7%
Alabama National Bancorporation
70
$
5,454
Knight Capital Group, Inc. —
FINANCIALS 10.6%
Class A*†
440
5,262
Alexandria Real Estate Equities,
Pacific Capital Bancorp
200
5,260
Inc.†
130
$
12,514
Argo Group International
Realty Income Corp.†
430
12,018
Holdings Ltd.*†
120
5,221
Nationwide Health Properties,
Umpqua Holding Corp.†
260
5,203
Inc.†
380
11,449
Downey Financial Corp.†
90
5,202
Aspen Insurance Holdings Ltd.
370
10,327
MB Financial Corp.
150
5,182
Digital Realty Trust, Inc.†
230
9,060
FelCor Lodging Trust, Inc.†
260
5,182
Platinum Underwriters Holdings
Citizens Banking Corp.†
320
5,155
Ltd.†
250
8,990
RLI Corp.
90
5,105
Apollo Investment Corp.†
420
8,736
Pennsylvania Real Estate
Montpelier Re Holdings Ltd.†
480
8,496
Investment Trust†
130
5,062
National Financial Partners
Cousins Properties, Inc.†
170
4,991
Corp.
160
8,477
Prosperity Bancshares, Inc.
150
4,974
IPC Holdings Ltd.
270
7,789
optionsXpress Holdings, Inc.
190
4,967
Senior Housing Properties Trust†
350
7,721
Glacier Bancorp, Inc.
220
4,954
Assured Guaranty Ltd.
280
7,608
Selective Insurance Group, Inc.
230
4,894
ProAssurance Corp.*
140
7,542
International Bancshares Corp.
220
4,774
UCBH Holdings, Inc.†
430
7,516
Ares Capital Corp.
290
4,718
Delphi Financial Group, Inc. —
First Charter Corp.
150
4,525
Class A†
180
7,276
Ashford Hospitality Trust, Inc.†
450
4,522
Potlatch Corp.
160
7,205
Cash America International, Inc.†
120
4,512
NewAlliance Bancshares, Inc.
490
7,193
American Financial Realty Trust
560
4,508
First Midwest Bancorp, Inc.
210
7,174
Omega Healthcare Investors, Inc.
290
4,504
LaSalle Hotel Properties
170
7,154
Odyssey Re Holdings Corp.
120
4,453
South Financial Group, Inc.
310
7,049
Susquehanna Bancshares, Inc.†
220
4,422
Chittenden Corp.
200
7,032
Provident Financial Services, Inc.
270
4,420
Max Capital Group Ltd.†
250
7,010
United Community Banks, Inc.†
180
4,414
Post Properties, Inc.
180
6,966
FNB Corp.†
260
4,300
DiamondRock Hospitality Co.†
400
6,964
Piper Jaffray Cos., Inc.*
80
4,288
National Retail Properties, Inc.†
280
6,826
Provident Bankshares Corp.†
136
4,261
Phoenix Cos., Inc.
480
6,773
Signature Bank*
120
4,228
Cathay General Bancorp†
210
6,764
Boston Private Financial Holdings,
BioMed Realty Trust, Inc.†
280
6,748
Inc.†
150
4,176
Zenith National Insurance
Extra Space Storage, Inc.†
270
4,155
Corp.†
150
6,733
Equity Lifestyle Properties, Inc.†
80
4,144
FirstMerit Corp.
340
6,718
Advanta Corp.
150
4,113
SVB Financial Group*†
140
6,630
Central Pacific Financial Corp.
130
3,796
Strategic Hotels & Resorts, Inc.
320
6,589
Horace Mann Educators Corp.
190
3,745
First Niagara Financial Group,
MCG Capital Corp.
260
3,741
Inc.†
460
6,509
Inland Real Estate Corp.†
240
3,718
Commerce Group, Inc.
220
6,483
Portfolio Recovery Associates,
Greater Bay Bancorp
220
6,072
Inc.†
70
3,715
GFI Group, Inc.*
70
6,028
Wintrust Financial Corp.†
86
3,671
First Community Bancorp†
110
6,018
Sterling Bancshares, Inc.†
320
3,651
Westamerica Bancorporation†
120
5,977
Universal American Financial
Sterling Savings Bank†
220
5,920
Corp.*
160
3,650
Trustmark Corp.†
200
5,608
S&T Bancorp, Inc.
110
3,530
Lexington Realty Trust†
280
5,603
United Fire & Casualty Co.
90
3,518
Entertainment Properties Trust
110
5,588
Stifel Financial Corp.*†
60
3,470
Mid-America Apartment
FirstFed Financial Corp.*†
70
3,468
Communities, Inc.
110
5,483
PS Business Parks, Inc.
60
3,411
50
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
VALUE
MARKET
VALUE
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
National Penn Bancshares, Inc.†
206
$
3,370
WSFS Financial Corp.
30
$
1,872
Financial Federal Corp.†
120
3,361
TierOne Corp.
70
1,853
First Bancorp Puerto Rico†
350
3,325
Crystal River Capital, Inc.†
110
1,849
CVB Financial Corp.†
280
3,276
Sun Communities, Inc.
60
1,805
Infinity Property & Casualty Corp.
80
3,218
First Financial Bancorp†
140
1,789
Brookline Bancorp, Inc.
270
3,129
Capital Trust, Inc. — Class A
50
1,775
NBT Bancorp, Inc.
140
3,044
SWS Group, Inc.
100
1,769
Newcastle Investment Corp.†
170
2,995
Gramercy Capital Corp.
70
1,762
Redwood Trust, Inc.†
90
2,990
Flagstar Bancorp, Inc.†
180
1,751
MFA Mortgage Investments, Inc.†
350
2,817
CompuCredit Corp.*†
80
1,737
Medical Properties Trust Inc.
210
2,797
Banner Corp.
50
1,720
LandAmerica Financial Group, Inc.†
70
2,729
Dollar Financial Corp.*
60
1,712
Navigators Group, Inc.*†
50
2,713
Kite Realty Group Trust
90
1,692
Bank Mutual Corp.
230
2,712
Western Alliance Bancorp, Inc.*†
70
1,650
Chemical Financial Corp.
110
2,668
BankAtlantic Bancorp, Inc. —
Parkway Properties, Inc.
60
2,648
Class A†
190
1,647
Hanmi Financial Corp.
170
2,633
First State Bancorporation
80
1,571
Cohen & Steers, Inc.
70
2,592
PFF Bancorp, Inc.†
100
1,534
Cedar Shopping Centers, Inc.
190
2,588
Asta Funding, Inc.†
40
1,533
NorthStar Realty Finance Corp.†
260
2,582
State Auto Financial Corp.
50
1,463
Ramco-Gershenson Properties
Green Bankshares, Inc.
40
1,458
Trust
80
2,499
Ocwen Financial Corp.*†
150
1,415
Pico Holdings, Inc.*
60
2,493
JER Investors Trust, Inc.†
110
1,370
Amcore Financial, Inc.
100
2,492
Prospect Capital Corp.†
80
1,362
Anthracite Capital, Inc.†
270
2,457
Hercules Technology Growth
LTC Properties, Inc.†
100
2,367
Capital, Inc.†
100
1,327
Hilltop Holdings, Inc.*
200
2,348
Thomas Weisel Partners Group,
Community Bank System, Inc.
120
2,342
Inc.*
90
1,306
World Acceptance Corp.*
70
2,316
Capitol Bancorp, Ltd.†
50
1,242
Security Capital Assurance Ltd.†
100
2,284
NexCen Brands, Inc.*
180
1,210
WesBanco, Inc.
90
2,248
CoBiz Financial, Inc.
70
1,198
Columbia Banking Systems, Inc.†
70
2,227
Midwest Banc Holdings, Inc.†
80
1,182
Banco Latinoamericano
W Holding Co., Inc.†
490
1,098
de Exportaciones SA
120
2,182
Anworth Mortgage Asset
Texas Capital Bancshares, Inc.*
100
2,174
Corp.†
190
1,024
Anchor BanCorp Wisconsin, Inc.
80
2,160
Resource Capital Corp.†
90
1,013
United America Indemnity Ltd. —
Franklin Bank Corp.*
110
1,012
Class A*
100
2,151
Independent Bank Corp.
90
995
RAIT Financial Trust†
260
2,140
Triad Guaranty, Inc.*†
50
949
IBERIABANK Corp.
40
2,106
Arbor Realty Trust, Inc.
50
945
Corus Bankshares, Inc.†
160
2,083
U.S.B. Holding Co.†
40
929
Saul Centers, Inc.
40
2,060
Irwin Financial Corp.
80
882
Bankunited Financial Corp. —
Resource America, Inc. —
Class A†
130
2,020
Class A
50
790
Ezcorp, Inc. — Class A*
150
2,018
Security Bank Corp.
60
751
Cascade Bancorp.†
90
2,003
Total Financials
Primus Guaranty Ltd.*
190
1,999
707,937
INFORMATION TECHNOLOGY 10.2%
Northwest Bancorp, Inc.
70
1,992
Flir Systems, Inc.*†
280
15,509
Deerfield Triarc Capital Corp.†
220
1,991
FBL Financial Group, Inc. —
ON Semiconductor Corp.*
1,040
13,062
Itron, Inc.*†
130
Class A
50
1,975
12,099
MarketAxess Holdings, Inc.*†
Ansys, Inc.*†
330
11,276
130
1,950
Equinix, Inc.*
126
Harleysville Group, Inc.
60
1,919
11,175
Sterling Financial Corp.
110
1,887
Micros Systems, Inc.*†
170
11,062
Foundry Networks, Inc.*
620
11,017
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
51
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Nuance Communications, Inc.*†
560
$
10,814
Brooks Automation, Inc.*
320
$
4,557
Anixter International, Inc.*†
130
10,718
Cabot Microelectronics Corp.*
100
4,275
Polycom, Inc.*†
390
10,475
Netgear, Inc.*
140
4,259
ValueClick, Inc.*†
420
9,433
Checkpoint Systems, Inc.*†
160
4,222
Andrew Corp.*
660
9,141
Rofin-Sinar Technologies, Inc.*
60
4,213
Sybase, Inc.*†
390
9,021
United Online, Inc.†
280
4,203
Formfactor, Inc.*
200
8,874
Coherent, Inc.*
130
4,170
Jack Henry & Associates, Inc.
340
8,792
ATMI, Inc.*
140
4,165
Parametric Technology Corp.*
490
8,536
CSG Systems International, Inc.*
190
4,038
3Com Corp.*
1,670
8,250
MKS Instruments, Inc.*†
210
3,994
Digital River, Inc.*
180
8,055
InterDigital, Inc.*†
190
3,948
PMC - Sierra, Inc.*†
910
7,635
Omniture, Inc.*
130
3,942
Tessera Technologies, Inc.*†
200
7,500
Blue Coat Systems, Inc.*
50
3,938
Benchmark Electronics, Inc.*†
310
7,400
MAXIMUS, Inc.
90
3,922
Atheros Communications, Inc.*
240
7,193
Vasco Data Security
Palm, Inc.*†
440
7,159
International*†
110
3,884
THQ, Inc.*
280
6,994
Standard Microsystems Corp.*
100
3,842
Emulex Corp.*
360
6,901
Trident Microsystems, Inc.*
240
3,814
j2 Global Communications, Inc.*†
210
6,873
Websense, Inc.*
190
3,749
CACI International, Inc. —
Imation Corp.
150
3,680
Class A*†
130
6,642
Ariba, Inc.*
340
3,665
TIBCO Software, Inc.*†
890
6,577
Ultimate Software Group, Inc.*
100
3,490
Electronics for Imaging, Inc.*†
240
6,446
Epicor Software Corp.*
250
3,443
Perot Systems Corp. — Class A*†
370
6,257
SPSS, Inc.*†
80
3,291
Wright Express Corp.*†
170
6,203
Manhattan Associates, Inc.*
120
3,289
Skyworks Solutions, Inc.*†
680
6,147
Advent Software, Inc.*†
70
3,288
Avocent Corp.*
210
6,115
Sycamore Networks, Inc.*
790
3,215
DealerTrack Holdings, Inc.*†
140
5,863
Littelfuse, Inc.*
90
3,212
Informatica Corp.*†
370
5,809
MicroStrategy, Inc. — Class A*
40
3,174
Arris Group, Inc.*†
470
5,804
Hittite Microwave Corp.*†
70
3,091
Cymer, Inc.*
150
5,758
ViaSat, Inc.*
100
3,083
ADTRAN, Inc.
250
5,757
Park Electrochemical Corp.
90
3,022
Plantronics, Inc.†
200
5,710
Black Box Corp.
70
2,993
Macrovision Corp.*†
230
5,665
Novatel Wireless, Inc.*
130
2,945
Euronet Worldwide, Inc.*†
190
5,656
Sirenza Microdevices, Inc.*
170
2,939
Lawson Software, Inc.*
560
5,606
RealNetworks, Inc.*
430
2,915
RF Micro Devices, Inc.*
830
5,586
Rogers Corp.*
70
2,883
Semtech Corp.*
270
5,530
Mantech International Corp. —
Blackboard, Inc.*†
120
5,501
Class A*
80
2,878
Mentor Graphics Corp.*†
360
5,436
Electro Scientific Industries, Inc.*
120
2,875
Synaptics, Inc.*
110
5,254
CMGI, Inc.*
2,090
2,842
Dycom Industries, Inc.*†
170
5,207
Cogent, Inc.*†
180
2,822
Amkor Technology, Inc.*†
450
5,184
Quantum Corp.*
830
2,822
Insight Enterprises, Inc.*
200
5,162
AMIS Holdings, Inc.*
280
2,719
Progress Software Corp.*
170
5,151
Faro Technologies, Inc.*
60
2,649
Quest Software, Inc.*
290
4,976
KEMET Corp.*
360
2,646
Entegris, Inc.*
570
4,948
Micrel, Inc.
240
2,592
Comtech Telecommunications
The Knot, Inc.*
120
2,551
Corp.*†
90
4,814
Mastec, Inc.*
180
2,533
MPS Group, Inc.*†
430
4,794
Veeco Instruments, Inc.*
130
2,519
SRA International, Inc. —
LoopNet, Inc.*
120
2,465
Class A*
170
4,774
Cirrus Logic, Inc.*
380
2,432
Concur Technologies, Inc.*†
150
4,728
C-COR, Inc.*
210
2,413
FEI Co.*†
150
4,714
Vignette Corp.*
120
2,408
Technitrol, Inc.
170
4,582
SonicWALL, Inc.*
270
2,357
52
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
MARKET
MARKET
VALUE
VALUE
SHARES
(NOTE 1)
SHARES
(NOTE 1)
SYKES Enterprises, Inc.*
140
$
2,325
Tempur-Pedic International, Inc.†
350
$
12,512
JDA Software Group, Inc.*
110
2,273
Men’s Wearhouse, Inc.
230
11,620
Advanced Energy Industries, Inc.*
150
2,265
Lear Corp.*†
320
10,272
Methode Electronics, Inc. —
Strayer Education, Inc.
60
10,118
Class A
150
2,258
DeVry, Inc.
246
9,104
Stratasys, Inc.*†
80
2,205
Gaylord Entertainment Co.*
166
8,835
Agilysys, Inc.
130
2,197
Jack in the Box, Inc.*
130
8,429
Newport Corp.*†
140
2,132
Tupperware Brands Corp.
260
8,187
Kulicke & Soffa Industries, Inc.*
250
2,120
Vail Resorts, Inc.*†
130
8,098
Smith Micro Software, Inc.*†
130
2,088
Warnaco Group, Inc.*
200
7,814
TTM Technologies, Inc.*
180
2,083
Bally Technologies Inc.*
220
7,795
S1 Corp.*
230
2,082
Gemstar-TV Guide International,
Photronics, Inc.*
180
2,054
Inc.*
1,070
7,447
Global Cash Access Holdings, Inc.*
190
2,012
Fossil, Inc.*
180
6,725
Exar Corp.*
150
1,959
J. Crew Group, Inc.*†
160
6,640
Extreme Networks, Inc.*
510
1,958
Polaris Industries, Inc.
150
6,543
Adaptec, Inc.*
510
1,948
Cooper Tire & Rubber Co.
260
6,344
Authorize.Net Holdings, Inc.*
110
1,939
Wolverine World Wide, Inc.
230
6,302
CTS Corp.
150
1,935
Belo Corp. — Class A
360
6,250
Internet Capital Group, Inc.*
160
1,920
American Greetings Corp. —
Mattson Technology, Inc.*
220
1,903
Class A
230
6,072
DSP Group, Inc.*
120
1,900
Aeropostale, Inc.*†
315
6,004
Cohu, Inc.
100
1,875
Under Armour, Inc.*†
100
5,982
Bankrate, Inc.*†
40
1,845
Collective Brands, Inc.*
270
5,956
Chordiant Software, Inc.*
130
1,802
Arbitron, Inc.
130
5,894
Immersion Corp.*
110
1,802
Regis Corp.
180
5,744
Ciber, Inc.*
230
1,796
Matthews International Corp. —
Art Technology Group, Inc.*
550
1,661
Class A
130
5,694
Rudolph Technologies, Inc.*†
120
1,660
WMS Industries, Inc.*
170
5,627
Supertex, Inc.*
40
1,595
Deckers Outdoor Corp.*
50
5,490
Rackable Systems, Inc.*†
120
1,556
Rent-A-Center, Inc.*†
300
5,439
Heartland Payment Systems, Inc.†
60
1,542
Marvel Entertainment, Inc.*
230
5,391
Ness Technologies, Inc.*
140
1,529
Iconix Brand Group, Inc.*
220
5,234
EPIQ Systems, Inc.*
80
1,506
Carter’s, Inc.*
250
4,987
Smart Modular Technologies
Callaway Golf Co.
310
4,963
WWH, Inc.*
210
1,502
Scholastic Corp.*
140
4,880
SI International, Inc.*
50
1,429
American Axle & Manufacturing
Greenfield Online, Inc.*
90
1,373
Holdings, Inc.†
190
4,797
Intevac, Inc.*
90
1,368
Bright Horizons Family Solutions,
infoUSA, Inc. — Class B
130
1,208
Inc.*†
110
4,712
Visual Sciences, Inc.*
80
1,155
Blue Nile, Inc.*†
50
4,706
Marchex, Inc.†
120
1,141
Gymboree Corp.*†
130
4,581
TheStreet.com, Inc.†
90
1,090
Rare Hospitality International,
Gevity HR, Inc.
100
1,025
Inc.*
120
4,573
STEC, Inc.*
130
992
Bob Evans Farms, Inc.
150
4,527
LivePerson, Inc.*
150
924
Charter Communications, Inc. —
Imergent, Inc.†
40
897
Class A*†
1,750
4,515
AsiaInfo Holdings, Inc.*
40
362
IHOP Corp.†
70
4,433
Total Information Technology
680,787
Blockbuster, Inc. — Class A*†
820
4,403
CONSUMER DISCRETIONARY 8.1%
Charming Shoppes, Inc.*
520
4,368
Chipotle Mexican Grill, Inc.*
140
14,980
Aaron Rents, Inc.
190
4,237
Priceline.com, Inc.*†
160
14,200
Interactive Data Corp.
150
4,230
Sotheby’s Holdings, Inc. —
Ruby Tuesday, Inc.
230
4,218
Class A†
280
13,381
CKE Restaurants, Inc.†
260
4,215
CBRL Group, Inc.
100
4,080
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
53
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Netflix, Inc.*†
190
$
3,937
Kellwood Co.
110
$
1,876
Cabela’s, Inc. — Class A*†
160
3,784
Unifirst Corp.
50
1,873
Brown Shoe Co., Inc.
190
3,686
Cox Radio Inc. — Class A*
140
1,827
Champion Enterprises, Inc.*†
330
3,623
Premier Exhibitions, Inc.*
120
1,810
Stage Stores, Inc.
190
3,464
AFC Enterprises, Inc.*
120
1,806
Modine Manufacturing Co.
130
3,461
Journal Communications, Inc. —
Sally Beauty Holdings, Inc.*
400
3,380
Class A
190
1,801
Triarc Cos., Inc. — Class B
270
3,378
Valassis Communications, Inc.*†
200
1,784
Group 1 Automotive, Inc.†
100
3,357
Skechers U.S.A., Inc. —
Jackson Hewitt Tax Service, Inc.†
120
3,355
Class A*
80
1,768
Stewart Enterprises, Inc. —
DSW, Inc.*†
70
1,762
Class A
440
3,353
Marcus Corp.
90
1,728
Citadel Broadcasting Corp.†
780
3,245
Exide Technologies*†
260
1,690
Dress Barn, Inc.*
190
3,232
Fred’s, Inc.
160
1,685
CEC Entertainment, Inc.*
120
3,224
Monaco Coach Corp.
120
1,684
Winnebago Industries, Inc.†
130
3,104
Big 5 Sporting Goods Corp.
90
1,683
Steiner Leisure Ltd.*
70
3,038
Hayes Lemmerz International,
Red Robin Gourmet Burgers, Inc.*
70
3,003
Inc.*
400
1,664
Lee Enterprises, Inc.
190
2,958
Charlotte Russe Holding, Inc.*
110
1,610
Jakks Pacific, Inc.*
110
2,938
Denny’s Corp.*
400
1,600
Sonic Automotive, Inc.
120
2,873
Lin TV Corp. — Class A*
120
1,561
Aftermarket Technology Corp.*
90
2,857
Amerigon, Inc.*
90
1,558
Drew Industries, Inc.*†
70
2,848
Meritage Homes Corp.*†
110
1,553
Columbia Sportswear Co.
50
2,766
La-Z-Boy, Inc.†
210
1,550
Entercom Communications
Jamba, Inc.*†
220
1,547
Corp.
140
2,706
Gray Television, Inc.
180
1,528
Entravision Communications
Steven Madden, Ltd.
80
1,516
Corp. — Class A*
290
2,674
O’Charleys, Inc.
100
1,516
Sealy Corp.†
190
2,668
Standard-Pacific Corp.†
270
1,482
Sinclair Broadcast Group, Inc. —
RCN Corp.*
120
1,476
Class A†
210
2,528
World Wrestling Entertainment,
Helen of Troy Ltd.*†
130
2,510
Inc.
90
1,357
RC2 Corp.*
90
2,492
Casual Male Retail Group, Inc.*
150
1,344
Media General, Inc.
90
2,476
Global Sources Ltd.*
60
1,330
Morningstar, Inc.*
40
2,456
Beazer Homes USA, Inc.†
160
1,320
Cato Corp. — Class A
120
2,453
Building Material Holding Corp.†
120
1,270
PEP Boys-Manny Moe & Jack
170
2,385
Monarch Casino & Resort, Inc.*
40
1,138
Jos. A. Bank Clothiers, Inc.*†
70
2,339
McCormick & Schmick’s Seafood
Jo-Ann Stores, Inc.*
110
2,321
Restaurants, Inc.*
60
1,130
K-Swiss, Inc. — Class A
100
2,291
Citi Trends, Inc.*†
50
1,088
Ambassadors Group, Inc.
60
2,286
Multimedia Games, Inc.*†
100
852
Buckle, Inc.
60
2,276
Westwood One, Inc.†
300
825
Buffalo Wild Wings, Inc.*
60
2,263
MTR Gaming Group, Inc.*
80
762
Blyth, Inc.
110
2,250
Bluegreen Corp.*
90
698
Shuffle Master, Inc.*†
150
2,243
Movado Group, Inc.
Total Consumer Discretionary
536,966
70
2,234
INDUSTRIALS 7.8%
Speedway Motorsports, Inc.
60
2,220
Papa John’s International, Inc.*
90
Bucyrus International, Inc. —
2,200
Spartan Motors, Inc.†
Class A†
150
10,939
130
2,188
Oxford Industries, Inc.
60
Washington Group International,
2,167
Furniture Brands International,
Inc.*
120
10,537
Inc.†
200
2,028
Belden, Inc.
200
9,382
Waste Connections, Inc.*†
290
9,210
Asbury Automotive Group, Inc.†
100
1,981
Ceradyne, Inc.*†
Universal Electronics, Inc.*
60
1,950
120
9,089
CSK Auto Corp.*
180
1,917
Acuity Brands, Inc.†
180
9,086
54
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
FTI Consulting, Inc.*†
180
$
9,056
ABM Industries, Inc.
180
$
3,596
Curtiss-Wright Corp.
190
9,025
NCI Building Systems, Inc.*†
80
3,457
EMCOR Group, Inc.*
270
8,467
RBC Bearings, Inc.*
90
3,451
Deluxe Corp.
220
8,105
Heartland Express, Inc.†
240
3,427
Watson Wyatt & Co. Holdings†
180
8,089
Republic Airways Holdings, Inc.*
160
3,387
Granite Construction, Inc.
150
7,953
Kenexa Corp. — Class A*
110
3,386
Wabtec Corp.†
210
7,867
Korn/Ferry International, Inc.*
200
3,302
Baldor Electric Co.†
190
7,590
Werner Enterprises, Inc.
190
3,258
Brady Corp. — Class A
210
7,535
EnPro Industries, Inc.*
80
3,248
Clarcor, Inc.
220
7,526
Rollins, Inc.†
120
3,203
GrafTech International Ltd.*
420
7,493
Circor International, Inc.
70
3,179
Teledyne Technologies, Inc.*
140
7,475
School Specialty, Inc.*
90
3,117
IHS, Inc.*†
130
7,344
Apogee Enterprises, Inc.
120
3,113
Herman Miller, Inc.
270
7,328
II-VI, Inc.*
90
3,108
Actuant Corp. — Class A†
110
7,147
Federal Signal Corp.
200
3,072
SkyWest, Inc.
280
7,048
Superior Essex, Inc.*
80
2,982
Moog, Inc. — Class A*
160
7,030
Arkansas Best Corp.†
90
2,939
Nordson Corp.
140
7,029
Tennant Co.
60
2,922
JetBlue Airways Corp.*†
760
7,007
Viad Corp.
80
2,880
Genlyte Group, Inc.*
106
6,812
Old Dominion Freight Line, Inc.*†
120
2,876
Regal-Beloit Corp.†
130
6,226
Robbins & Myers, Inc.
50
2,864
Geo Group, Inc.*
210
6,218
Pacer International, Inc.
150
2,857
Perini Corp.*
110
6,152
Layne Christensen Co.*
50
2,774
United Stationers, Inc.*
110
6,107
Cascade Corp.
40
2,607
Mueller Water Products, Inc. —
Atlas Air Worldwide Holdings
Class A†
490
6,071
Co., Inc.*
50
2,582
Barnes Group, Inc.†
190
6,065
Heidrick & Struggles International,
IKON Office Solutions, Inc.
460
5,911
Inc.*
70
2,552
Hexcel Corp.*†
260
5,905
DynCorp International, Inc. —
Esterline Technologies Corp.*†
100
5,705
Class A*
110
2,542
Applied Industrial Technologies,
Cubic Corp.
60
2,530
Inc.
180
5,549
Interline Brands, Inc.*
110
2,529
Heico Corp.†
110
5,430
Encore Wire Corp.†
100
2,513
Mueller Industries, Inc.
150
5,421
Consolidated Graphics, Inc.*
40
2,512
Tetra Tech, Inc.*†
250
5,280
M&F Worldwide Corp.*
50
2,510
Astec Industries, Inc.*
90
5,170
American Science & Engineering,
Triumph Group, Inc.
60
4,903
Inc.†
40
2,506
AAR Corp.*
160
4,854
Navigant Consulting, Inc.*
190
2,405
HUB Group, Inc. — Class A*†
160
4,805
Raven Industries, Inc.†
60
2,403
Simpson Manufacturing Co., Inc.†
150
4,777
Rush Enterprises, Inc. — Class A*
90
2,282
Eagle Bulk Shipping, Inc.†
180
4,633
American Reprographics Co.*
120
2,246
Horizon Lines, Inc. — Class A†
140
4,274
Tredegar Corp.
130
2,243
Watsco, Inc.
90
4,179
Ennis Inc.
100
2,204
Interface, Inc. — Class A†
230
4,151
Universal Forest Products, Inc.
70
2,093
Teletech Holdings, Inc.*
170
4,065
NACCO Industries, Inc. —
Watts Industries, Inc. — Class A†
130
3,991
Class A
20
2,070
A.O. Smith Corp.
90
3,949
Gibraltar Industries, Inc.
110
2,035
EDO Corp.
70
3,921
Bowne & Co., Inc.
120
1,999
AirTran Holdings, Inc.*†
390
3,838
Spherion Corp.*
240
1,982
Goodman Global, Inc.*†
160
3,821
Kelly Services, Inc.
100
1,981
Knoll, Inc.
210
3,725
CRA International, Inc.*†
40
1,928
Labor Ready, Inc.*
200
3,702
TransDigm Group, Inc.*
40
1,828
Healthcare Services Group†
180
3,649
Blount International, Inc.*
160
1,818
Administaff, Inc.
100
3,630
Griffon Corp.*
120
1,812
G & K Services, Inc. — Class A
90
3,618
Lindsay Manufacturing Co.
40
1,751
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
55
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
Columbus McKinnon Corp. —
Meridian Bioscience, Inc.
170
$
5,154
Class A*
70
$
1,742
American Medical Systems
Kforce, Inc.*
130
1,672
Holdings, Inc.*†
300
5,085
Greenbrier Cos., Inc.†
60
1,603
Pharmion Corp.*†
110
5,075
EnerSys*
90
1,599
NuVasive, Inc.*
140
5,030
Freightcar America, Inc.
40
1,528
Apria Healthcare Group, Inc.*
190
4,942
TAL International Group, Inc.
60
1,504
Cubist Pharmaceuticals, Inc.*†
230
4,860
Wabash National Corp.†
120
1,355
Regeneron Pharmaceuticals, Inc.*
270
4,806
Houston Wire & Cable Co.†
70
1,268
Eclipsys Corp.*
200
4,664
Celadon Group, Inc.*
100
1,177
Applera Corp. - Celera Group*
330
4,640
Insteel Industries, Inc.
70
1,075
Thoratec Corp.*
220
4,552
Total Industrials
518,248
Parexel International Corp.*
110
4,540
HEALTH CARE 7.6%
Exelixis, Inc.*†
410
4,342
Hologic, Inc.*†
220
13,420
KV Pharmaceutical Co.*†
150
4,290
Illumina, Inc.*
220
11,414
Alnylam Pharmaceuticals, Inc.*†
130
4,260
Inverness Medical Innovations,
XenoPort, Inc.*
90
4,234
Inc.*†
200
11,064
Wright Medical Group, Inc.*
150
4,023
Alexion Pharmaceuticals, Inc.*
160
10,424
Omnicell, Inc.*
140
3,996
Immucor, Inc.*
290
10,367
Medicines Co.*
220
3,918
BioMarin Pharmaceuticals, Inc.*
410
10,209
Healthspring, Inc.*
200
3,900
MGI Pharma, Inc.*†
340
9,445
Integra LifeSciences Holdings
Myriad Genetics, Inc.*
180
9,387
Corp.*†
80
3,886
Psychiatric Solutions, Inc.*†
230
9,034
Centene Corp.*
180
3,872
Amedisys, Inc.*†
Onyx Pharmaceuticals, Inc.*†
200
8,704
Alpharma, Inc. — Class A†
180
3,845
OSI Pharmaceuticals, Inc.*†
240
8,158
100
3,842
Alkermes, Inc.*†
430
7,912
Martek Biosciences Corp.*†
130
3,774
Steris Corp.†
280
7,652
Sciele Pharma, Inc.*†
140
3,643
Medarex, Inc.*†
540
7,646
HealthExtras, Inc.*
130
3,618
Varian, Inc.*
120
7,633
Nektar Therapeutics*†
390
3,444
AMERIGROUP Corp.*
220
7,586
Phase Forward, Inc.*
170
3,402
Healthways, Inc.*†
140
7,556
Conmed Corp.*
120
3,359
Savient Pharmaceuticals, Inc.*
Affymetrix, Inc.*†
290
7,357
The Trizetto Group, Inc.*
190
3,327
Bio-Rad Laboratories, Inc. —
220
3,201
Class A*
80
7,240
Analogic Corp.
50
3,188
150
Perrigo Co.†
330
7,045
SurModics, Inc.*
60
2,941
Medicis Pharmaceutical Corp. —
Par Pharmaceutical Cos., Inc.*
2,784
Class A†
230
7,017
AmSurg Corp.*
120
2,768
Magellan Health Services, Inc.*
160
6,493
Dendreon Corp.*†
350
2,691
Dionex Corp.*
80
6,357
Viropharma, Inc.*
300
2,670
Valeant Pharmaceuticals
AMN Healthcare Services, Inc.*
140
2,622
International*†
410
6,347
Symmetry Medical, Inc.*
150
2,505
Align Technology, Inc.*†
250
6,332
Sirona Dental Systems, Inc.*†
70
2,497
Owens & Minor, Inc.†
166
6,323
Salix Pharmaceuticals Ltd.*†
200
2,484
Allscripts Healthcare Solutions,
Greatbatch, Inc.*†
90
2,393
Inc.*†
230
6,217
Bruker BioSciences Corp.*
270
2,376
Chemed Corp.
100
6,216
Matria Healthcare, Inc.*
90
2,354
ArthroCare Corp.*
110
6,148
Quidel Corp.*
120
2,347
2,328
United Therapeutics Corp.*†
90
5,989
Halozyme Therapeutics, Inc.*†
270
2,346
Haemonetics Corp.*
110
5,436
Kindred Healthcare, Inc.*
130
West Pharmaceutical Services, Inc.
130
5,416
PharmaNet Development
PSS World Medical, Inc.*
280
5,356
Group, Inc.*
80
2,322
LifeCell Corp.*†
140
5,260
InterMune, Inc.*†
120
2,296
PolyMedica Corp.
100
5,252
Res-Care, Inc.*
100
2,284
Cepheid, Inc.*†
230
5,244
Cross Country Healthcare, Inc.*
130
2,271
56
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
Geron Corp.*†
310
$
2,269
Complete Production Services,
HMS Holdings Corp.*
90
2,215
Inc.*
180
$
3,686
SonoSite, Inc.*†
70
2,136
NATCO Group, Inc.*†
70
3,623
Gentiva Health Services, Inc.*
110
2,113
Basic Energy Services, Inc.*†
170
3,573
FoxHollow Technologies, Inc.*
80
2,112
Ship Finance International Ltd.†
130
3,415
Vital Signs, Inc.
40
2,086
Lufkin Industries, Inc.
60
3,301
Kendle International, Inc.*†
50
2,076
Golar LNG Ltd.†
140
3,125
Zoll Medical Corp.*
80
2,074
Petroleum Development Corp.*†
60
2,661
Cypress Bioscience, Inc.*†
150
2,054
Pioneer Drilling Co.*
210
2,558
Seattle Genetics, Inc.*†
180
2,023
International Coal Group, Inc.*†
540
2,398
Palomar Medical Technologies,
Dawson Geophysical Co.*
30
2,325
Inc.*
70
1,994
Matrix Service Co.*
110
2,305
ICU Medical, Inc.*†
50
1,938
Allis-Chalmers Energy, Inc.*†
110
2,083
OraSure Technologies, Inc.*
190
1,910
Uranium Resources, Inc.*
220
2,066
Air Methods Corp.*
40
1,848
Newpark Resources, Inc.*
380
2,037
eResearch Technology, Inc.*
160
1,822
Harvest Natural Resources, Inc.*
160
1,910
Molina Healthcare, Inc.*
50
1,814
Gulfport Energy Corp.*
80
1,893
Omrix Biopharmaceuticals, Inc.*†
50
1,766
Knightsbridge Tankers Ltd.†
70
1,883
Noven Pharmaceuticals, Inc.*
110
1,752
Contango Oil & Gas Co.*
50
1,810
Angiodynamics, Inc.*
90
1,697
Energy Partners Ltd.*
120
1,762
Datascope Corp.
50
1,691
Alon USA Energy, Inc.†
50
1,689
Volcano Corp.*
100
1,644
GMX Resources, Inc.*†
50
1,609
Neurocrine Biosciences, Inc.*†
160
1,600
Pacific Ethanol, Inc.*†
150
1,443
Vanda Pharmaceuticals, Inc.*†
110
1,530
VeraSun Energy Corp.*†
130
1,430
Ariad Pharmaceuticals, Inc.*†
290
1,343
Bois d’Arc Energy, Inc.*
70
1,342
CytRx Corp.*†
370
1,280
Double Hull Tankers, Inc.†
90
1,340
Nabi Biopharmaceuticals*
260
1,056
Aventine Renewable Energy
Total Health Care
502,490
Holdings, Inc.*
120
1,268
ENERGY 3.3%
Delek US Holdings, Inc.†
50
1,254
Exterran Holdings, Inc.*†
246
19,764
Callon Petroleum Co.*
90
1,253
PetroHawk Energy Corp.*†
720
11,822
Total Energy
219,730
Oil States International, Inc.*†
200
9,660
MATERIALS 3.0%
W-H Energy Services, Inc.*
130
9,587
CF Industries Holdings, Inc.
240
18,219
Hercules Offshore*†
360
9,400
Terra Industries, Inc.*†
390
12,192
Atwood Oceanics, Inc.*†
110
8,422
AptarGroup, Inc.†
290
10,982
Whiting Petroleum Corp.*
180
8,001
Hercules, Inc.†
500
10,510
Mariner Energy, Inc.*†
370
7,663
Texas Industries, Inc.†
110
8,635
Penn Virginia Corp.
160
7,037
Greif, Inc. — Class A†
140
8,495
Alpha Natural Resources, Inc.*
280
6,504
H.B. Fuller Co.†
260
7,717
Comstock Resources, Inc.*†
190
5,860
Quanex Corp.†
150
7,047
Grey Wolf, Inc.*
790
5,174
Olin Corp.
310
6,938
Bill Barrett Corp.*†
130
5,123
Worthington Industries, Inc.†
290
6,832
Swift Energy Co.*
120
4,910
RTI International Metals, Inc.*
86
6,816
World Fuel Services Corp.
120
4,897
Schnitzer Steel Industries, Inc. —
GulfMark Offshore, Inc.*
100
4,866
Class A†
90
6,596
Stone Energy Corp.*
120
4,801
Metal Management, Inc.
110
5,962
Nordic American Tanker
Sensient Technologies Corp.
200
5,774
Shipping†
120
4,709
Silgan Holdings, Inc.
100
5,375
Atlas America, Inc.
90
4,647
Minerals Technologies, Inc.
80
5,360
EXCO Resources, Inc.*
260
4,300
Rockwood Holdings, Inc.*
140
5,016
Parker Drilling Co.*†
480
3,898
Arch Chemicals, Inc.†
100
4,688
Rosetta Resources, Inc.*†
210
3,851
Brush Engineered Materials, Inc.*
90
4,670
USEC, Inc.*†
370
3,792
Hecla Mining Co.*†
510
4,565
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
57
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
RUSSELL 2000® FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Rock-Tenn Co. — Class A
150
$
4,335
Universal Corp.
110
$
5,384
Kaiser Aluminum Corp.
60
4,234
Hain Celestial Group, Inc.*†
160
5,141
Ferro Corp.
190
3,796
Chattem, Inc.*†
70
4,936
Amcol International Corp.†
110
3,640
Performance Food Group Co.*
150
4,519
Haynes International, Inc.*
40
3,415
Tootsie Roll Industries, Inc.†
150
3,980
PolyOne Corp.*
400
2,988
TreeHouse Foods, Inc.*
130
3,517
NewMarket Corp.
60
2,963
Fresh Del Monte Produce, Inc.†
120
3,450
Glatfelter
190
2,820
Darling International, Inc.*
340
3,363
Headwaters, Inc.*†
170
2,530
Sanderson Farms, Inc.†
70
2,917
Buckeye Technologies, Inc.*
160
2,422
Andersons, Inc.†
60
2,881
Calgon Carbon Corp.*†
170
2,373
Vector Group Ltd.
126
2,824
Innospec, Inc.
100
2,278
Elizabeth Arden, Inc.*
100
2,696
Spartech Corp.
130
2,218
Alliance One International, Inc.*
410
2,681
A. Schulman, Inc.
110
2,170
Pantry, Inc.*†
100
2,563
Wausau Paper Corp.
190
2,119
American Oriental Bioengineering,
Neenah Paper, Inc.
60
1,985
Inc. PLC*†
220
2,453
Stillwater Mining Co.*
180
1,852
Great Atlantic & Pacific Tea Co.*†
80
2,437
Olympic Steel, Inc.
40
1,086
WD-40 Co.
70
2,390
Total Materials
201,613
Spartan Stores, Inc.
90
2,028
UTILITIES 1.7%
Nash Finch Co.†
50
1,992
Westar Energy, Inc.
Boston Beer Co., Inc. — Class A*
380
9,333
J&J Snack Foods Corp.
50
1,741
ITC Holdings Corp.
180
8,919
30
1,460
Nicor, Inc.†
190
8,151
Ingles Markets, Inc. — Class A
40
1,146
PNM Resources, Inc.
320
7,449
Total Consumer Staples
104,224
WGL Holdings, Inc.
200
6,778
TELECOMMUNICATION SERVICES 0.8%
Aquila, Inc.*†
1,600
6,416
Time Warner Telecom, Inc. —
Cleco Corp.†
250
6,317
Class A*†
620
13,622
Black Hills Corp.†
150
6,153
Golden Telecom, Inc.†
70
5,634
New Jersey Resources Corp.†
110
5,455
Cincinnati Bell, Inc.*†
1,060
5,236
Southwest Gas Corp.
180
5,092
Cogent Communications Group,
Northwest Natural Gas Co.†
110
5,027
Inc.*†
220
5,135
Allete, Inc.†
110
4,924
Premiere Global Services, Inc.*
300
3,795
South Jersey Industries, Inc.
130
4,524
NTELOS Holdings Corp.
120
3,535
Avista Corp.
220
4,477
Fairpoint Communications, Inc.†
150
2,829
El Paso Electric Co.*
190
4,395
General Communication, Inc. —
NorthWestern Corp.
150
4,075
Class A*
220
2,671
Portland General Electric Co.
120
3,336
Alaska Communications Systems
Mge Energy, Inc.
90
3,010
Group, Inc.
180
2,601
Laclede Group, Inc.
90
2,905
Iowa Telecommunications Services,
Consolidated Water Co., Inc.†
50
1,501
Inc.†
130
2,581
Central Vermont Public Service
iPCS, Inc. — Class A
70
2,407
Corp.
40
1,462
Syniverse Holdings, Inc.*
110
1,749
Total Utilities
109,699
IDT Corp. — Class B†
200
1,674
CONSUMER STAPLES 1.6%
USA Mobility, Inc.*
90
1,518
Central European Distribution
Centennial Communications Corp.*
100
1,012
Corp.*†
150
7,186
Total Telecommunication Services
55,999
Flowers Foods, Inc.
320
6,976
Total Common Stocks
Ralcorp Holdings, Inc.*
110
6,140
(Cost $3,340,726)
3,637,693
Pilgrim’s Pride Corp.
170
5,904
Casey’s General Stores, Inc.
210
5,817
Ruddick Corp.
170
5,702
58
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
RUSSELL 2000® FUND
FACE
VALUE
GAIN
MARKET
UNREALIZED
AMOUNT
(NOTE 1)
CONTRACTS
(NOTE 1)
REPURCHASE AGREEMENTS 59.8%
FUTURES CONTRACTS PURCHASED
Repurchase Agreement (Note 5)
December 2007 Russell 2000 Index
Mizuho Financial Group, Inc.
Mini Futures Contracts
issued 09/28/07 at 3.96%
(Aggregate Market Value
due 10/01/07
$2,223,662
$ 2,223,662
of Contracts $1,457,100)
18
$
2,727
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
UNITS
EQUITY INDEX SWAP AGREEMENTS
due 10/01/07
1,242,531
1,242,531
Morgan Stanley
issued 09/28/07 at 3.80%
December 2007 Russell 2000 Index
due 10/01/07
261,607
261,607
Swap, Terminating 12/28/07**
Credit Suisse Group
(Notional Market Value
issued 09/28/07 at 3.95%
$1,033,893)
1,254
$
13,363
due 10/01/07††
253,223
253,223
November 2007 Russell 2000 Index
Total Repurchase Agreements
Swap, Terminating 11/20/07**
(Notional Market Value
(Cost $3,981,023)
3,981,023
$531,809)
660
941
SECURITIES LENDING COLLATERAL 16.1%
(Total Notional Market
Investment in Securities Lending Short Term
Value $1,565,702)
$
14,304
Investment Portfolio Held by
U.S. Bank (Note 8)
1,072,191
1,072,191
Total Securities Lending Collateral
(Cost $1,072,191)
1,072,191
Total Investments 130.6%
(Cost $8,393,940)
$ 8,690,907
Liabilities in Excess of
Other Assets – (30.6)%
$ (2,035,976)
Net Assets – 100.0%
$ 6,654,931
* Non-Income Producing Security.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
** Price Return based on Russell 2000 Index +/- financing at a variable rate.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
59
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INVERSE RUSSELL 2000® STRATEGY FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
REPURCHASE AGREEMENTS 99.0%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$36,889,890
$36,889,890
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
20,613,215
20,613,215
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07†
5,815,937
5,815,937
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
4,339,987
4,339,987
Total Repurchase Agreements
(Cost $67,659,029)
67,659,029
Total Investments 99.0%
(Cost $67,659,029)
$ 67,659,029
Other Assets in Excess
of Liabilities – 1.0%
$
684,561
Net Assets – 100.0%
$ 68,343,590
UNREALIZED
GAIN (LOSS)
CONTRACTS
(NOTE 1)
FUTURES CONTRACTS SOLD SHORT
December 2007 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $22,666,000)
280
$
419,779
UNITS
EQUITY INDEX SWAP AGREEMENTS
SOLD SHORT
November 2007 Russell 2000 Index
Swap, Terminating 11/20/07*
(Notional Market Value
$11,462,742)
14,231
$
487,476
December 2007 Russell 2000 Index
Swap, Terminating 12/28/07*
(Notional Market Value
$34,264,580)
42,541
(587,436)
(Total Notional Market
Value $45,727,322)
$
(99,960)
† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
* Price Return based on Russell 2000 Index +/- financing at a variable rate.
60
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
GOVERNMENT LONG BOND 1.2x STRATEGY FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
U.S. TREASURY OBLIGATIONS 94.7%
U.S. Treasury Bond
5.00% due 05/15/37
$60,649,000
$ 62,250,513
Total U.S. Treasury Obligations
(Cost $60,507,013)
62,250,513
REPURCHASE AGREEMENTS 3.2%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
1,254,269
1,254,269
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
700,857
700,857
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
147,561
147,561
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07
4,427
4,427
Total Repurchase Agreements
(Cost $2,107,114)
2,107,114
Total Investments 97.9%
(Cost $62,614,127)
$ 64,357,627
Other Assets in Excess
of Liabilities – 2.1%
$
1,380,370
Net Assets – 100.0%
$ 65,737,997
UNREALIZED
GAIN
CONTRACTS
(NOTE 1)
FUTURES CONTRACTS PURCHASED
December 2007 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value
of Contracts $25,609,063)
230
$
46,647
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
61
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INVERSE GOVERNMENT LONG BOND STRATEGY FUND
VALUE
MARKET
FACE
VALUE
MARKET
CONTRACTS
(NOTE 1)
AMOUNT
(NOTE 1)
OPTIONS PURCHASED 0.0%
U.S. TREASURY OBLIGATIONS
Call Options on:
SOLD SHORT (15.1)%
December 2007 U.S. Treasury
U.S. Treasury Bond
Bond Futures Contracts
5.00% due 05/15/37
$
73,885,000
$ (75,836,026)
Expiring November 2007 with
Total U.S. Treasury
strike price of 124†
426
$
—
Obligations Sold Short
December 2007 U.S. Treasury
(Proceeds $74,142,925)
(75,836,026)
Bond Futures Contracts
Total Short Sales (15.1)%
Expiring November 2007 with
(Proceeds $74,142,925)
$ (75,836,026)
Other Assets in Excess of
strike price of 132†
2,600
—
Total Options Purchased
(Cost $53,348)
—
Liabilities – 0.1%
$
245,284
Net Assets – 100.0%
$ 502,558,301
AMOUNT
FACE
UNREALIZED
LOSS
REPURCHASE AGREEMENTS 115.0%
CONTRACTS
(NOTE 1)
Joint Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
FUTURES CONTRACTS SOLD SHORT
December 2007 U.S. Treasury Bond
issued 09/28/07 at 3.96%
Futures Contracts
due 10/01/07††
$300,364,955
300,364,955
(Aggregate Market Value
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
of Contracts $665,056,219)
5,973
$
(715,160)
due 10/01/07
167,395,746
167,395,746
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
34,454,701
34,454,701
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07
63,641
63,641
Individual Repurchase Agreement
Lehman Brothers, Inc. at 3.90%
due 10/01/07 (Secured by a U.S.
Treasury Bond, at a rate of
5.00% and maturing 05/15/37
as collateral, with a Market
Value of $77,394,538)
having a Maturity Value of
$75,894,658
75,870,000
75,870,000
Total Repurchase Agreements
(Cost $578,149,043)
578,149,043
Total Long Securities 115.0%
(Cost $578,202,391)
$ 578,149,043
† Security is fair valued.
†† All or a portion of this security is pleged as short security collateral at September 30, 2007.
62
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
HIGH YIELD STRATEGY FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
REPURCHASE AGREEMENTS 101.3%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$25,191,687
$25,191,687
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
14,076,530
14,076,530
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
2,963,728
2,963,728
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07
88,912
88,912
Total Repurchase Agreements
(Cost $42,320,857)
42,320,857
Total Investments 101.3%
(Cost $42,320,857)
$ 42,320,857
Liabilities in Excess of
Other Assets – (1.3)%
$
(553,399)
Net Assets – 100.0%
$ 41,767,458
GAIN (LOSS)
UNREALIZED
CONTRACTS
(NOTE 1)
FUTURES CONTRACTS PURCHASED
December 2007 U.S. 5 Year
Treasury Note Futures Contracts
(Aggregate Market Value
of Contracts $39,066,406)
365
$
89,099
NOTIONAL
PRINCIPAL
CREDIT DEFAULT SWAP AGREEMENTS
PROTECTION SOLD
Dow Jones CDX North American
High Yield Swap
Agreement, Series 8
Protection Premium Rate 2.75%
Terminating 06/20/12
$32,800,000
$
262,063
Dow Jones CDX North American
High Yield Swap
Agreement, Series 9
Protection Premium Rate 3.75%
Terminating 12/20/12
10,000,000
(43,750)
$
218,313
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
63
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
INVERSE HIGH YIELD STRATEGY FUND
FACE
MARKET
AMOUNT
(NOTE 1)
VALUE
REPURCHASE AGREEMENTS 94.0%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$3,578,752
$3,578,752
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
1,999,723
1,999,723
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
421,030
421,030
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07
12,631
12,631
Total Repurchase Agreements
(Cost $6,012,136)
6,012,136
Total Investments 94.0%
(Cost $6,012,136)
$ 6,012,136
Other Assets in Excess of
Liabilities – 6.0%
$
386,222
Net Assets – 100.0%
$ 6,398,358
UNREALIZED
CONTRACTS
GAIN (LOSS)
(NOTE 1)
FUTURES CONTRACTS SOLD SHORT
December 2007 U.S. 5 Year
Treasury Note Futures Contracts
(Aggregate Market Value
of Contracts $6,100,781)
57
$
(17,070)
NOTIONAL
PRINCIPAL
CREDIT DEFAULT SWAP AGREEMENT
PROTECTION PURCHASED
Dow Jones CDX North American
High Yield Swap
Agreement, Series 8
Protection Premium Rate 2.75%
Terminating 06/20/12
$6,500,000
$
146,607
64
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
EUROPE 1.25x STRATEGY FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 59.4%
MATERIALS 3.3%
Anglo American PLC — SP ADR†
46,620
$
1,559,439
FINANCIALS 18.6%
Rio Tinto PLC — SP ADR†
3,777
1,297,022
HSBC Holdings PLC — SP ADR†
44,670
$
4,136,442
BHP Billiton Ltd. — SP ADR†
16,260
1,278,036
Banco Santander Central
Total Materials
4,134,497
Hispano SA — SP ADR
117,390
2,266,801
INFORMATION TECHNOLOGY 3.2%
UBS AG — SP ADR†
42,540
2,265,255
ABN AMRO Holding NV —
Nokia Oyj — SP ADR
60,220
2,284,144
Telefonaktiebolaget LM Ericsson
SP ADR
37,680
1,978,200
Deutsche Bank AG— SP ADR†
— SP ADR†
22,977
914,485
13,700
1,758,943
Lloyds TSB Group PLC —
SAP AG — SP ADR†
14,000
821,380
SP ADR†
37,890
1,684,589
Total Information Technology
4,020,009
Allianz AG — SP ADR†
71,280
1,658,686
CONSUMER STAPLES 3.2%
Credit Suisse Group —
Diageo PLC — SP ADR
19,310
1,694,066
SP ADR†
24,750
1,641,668
Unilever NV — SP ADR
50,450
1,556,383
Barclays PLC — SP ADR†
33,090
1,608,836
Cadbury Schweppes PLC —
ING Groep NV — SP ADR
35,440
1,570,346
SP ADR
15,680
729,434
Banco Bilbao Vizcaya Argentaria
Total Consumer Staples
3,979,883
SA — SP ADR†
62,550
1,456,164
CONSUMER DISCRETIONARY 2.5%
AXA — SP ADR†
28,410
1,267,370
DaimlerChrysler AG— SP ADR†
18,740
1,877,748
Total Financials
23,293,300
Koninklijke Philips Electronics NV
ENERGY 9.3%
— SP ADR
17,700
795,438
BP PLC — SP ADR
49,790
3,452,936
Luxottica Group — SP ADR
13,257
449,412
Total SA — SP ADR
40,850
3,310,076
Total Consumer Discretionary
Royal Dutch Shell PLC —
3,122,598
SP ADR†
INDUSTRIALS 1.7%
33,710
2,770,288
Siemens AG — SP ADR
12,820
1,759,545
ENI-Ente Nazionale Idrocarburi
Ryanair Holdings PLC —
— SP ADR†
29,390
2,167,806
Total Energy
11,701,106
SP ADR*†
9,840
408,458
HEALTH CARE 9.3%
Total Industrials
2,168,003
GlaxoSmithKline PLC —
Total Common Stocks
SP ADR†
61,650
3,279,780
(Cost $65,075,937)
74,525,836
Novartis AG — SP ADR
52,570
2,889,247
FACE
Sanofi-Aventis — SP ADR
49,790
2,112,092
AMOUNT
AstraZeneca PLC — SP ADR
33,460
1,675,342
REPURCHASE AGREEMENTS 38.0%
Alcon, Inc. — SP ADR†
4,626
665,774
Repurchase Agreement (Note 5)
Shire PLC — SP ADR†
8,520
630,310
Teva Pharmaceutical Industries
Mizuho Financial Group, Inc.
Ltd. — SP ADR†
8,460
376,216
issued 09/28/07 at 3.96%
due 10/01/07
Total Health Care
11,628,761
$21,365,089
21,365,089
Lehman Brothers Holdings, Inc.
TELECOMMUNICATION SERVICES 8.3%
issued 09/28/07 at 3.90%
Vodafone Group PLC —
due 10/01/07††
20,574,136
20,574,136
SP ADR†
87,970
3,193,311
Credit Suisse Group
Telefonica SA — SP ADR
32,020
2,682,636
issued 09/28/07 at 3.95%
BT Group PLC — SP ADR
25,810
1,621,642
due 10/01/07††
3,168,712
3,168,712
Deutsche Telekom AG —
Morgan Stanley
SP ADR†
65,650
1,288,709
issued 09/28/07 at 3.80%
France Telecom SA — SP ADR
28,040
937,658
due 10/01/07
2,513,540
2,513,540
Telecom Italia — SP ADR
24,900
753,723
Total Repurchase Agreements
Total Telecommunication Services
10,477,679
(Cost $47,621,477)
47,621,477
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
65
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
EUROPE 1.25x STRATEGY FUND
MARKET
UNREALIZED
AMOUNT
(NOTE 1)
UNITS
(NOTE 1)
FACE
VALUE
GAIN
SECURITIES LENDING COLLATERAL 10.9%
EQUITY INDEX SWAP AGREEMENTS
Investment in Securities Lending Short Term
December 2007 Dow Jones
Investment Portfolio Held by
STOXX 50 Index Swap,
U.S. Bank (Note 8)
$13,692,280
$
13,692,280
Terminating 12/14/07**
Total Securities Lending Collateral
(Notional Market Value
(Cost $13,692,280)
13,692,280
$59,866,532)
11,006
$
2,326,658
December 2007 Dow Jones
Total Investments 108.3%
STOXX 50 Index Swap,
(Cost $126,389,694)
$ 135,839,593
Terminating 12/28/07**
Liabilities in Excess of
(Notional Market Value
Other Assets – (8.3)%
$ (10,441,427)
$19,358,518)
3,560
704,441
Net Assets – 100.0%
$ 125,398,166
(Total Notional Market
Value $79,225,050)
$
3,031,099
UNREALIZED
LOSS
COUNTRY DIVERSIFICATION
CONTRACTS
(NOTE 1)
FUTURES CONTRACTS PURCHASED
December 2007 Dow Jones
STOXX 50 Index Futures Contracts
Finland
Sweden
(Aggregate Market Value
3%
1%
of Contracts $3,282,509)
60
$
(5,345)
Italy
Ireland
5%
1%
Spain
9%
Switzerland
Great
Britain
10%
37%
France
10%
Netherlands
12%
Germany
12%
The pie chart above reflects percentages
of the market value of Common Stocks.
** Price Return based on Dow Jones STOXX 50 Index +/- financing at a variable rate.
* Non-Income Producing Security.
†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
ADR—American Depository Receipt.
66
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
JAPAN 1.25x STRATEGY FUND
FACE
MARKET
AMOUNT
(NOTE 1)
VALUE
REPURCHASE AGREEMENTS 90.9%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$17,139,836
$17,139,836
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07†
15,766,771
15,766,771
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
2,016,451
2,016,451
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07
60,494
60,494
Total Repurchase Agreements
(Cost $34,983,552)
34,983,552
Total Investments 90.9%
(Cost $34,983,552)
$ 34,983,552
Other Assets in Excess
of Liabilities – 9.1%
$
3,493,975
Net Assets – 100.0%
$ 38,477,527
GAIN (LOSS)
UNREALIZED
CONTRACTS
(NOTE 1)
FOREIGN CURRENCY FUTURES
CONTRACTS PURCHASED
December 2007 Japanese
Yen Futures Contracts
(Aggregate Market Value
of Contracts $3,404,188)
31
$
20,289
FUTURES CONTRACTS PURCHASED
December 2007 Nikkei 225
Index Futures Contracts
(Aggregate Market Value
of Contracts $3,516,450)
42
$
(38,073)
UNITS
EQUITY INDEX SWAP AGREEMENT
December 2007 Topix 100 Index
Swap, Terminating 12/14/07*
(Notional Market Value
$44,194,207)
4,331,333
$
2,825,386
† All or a portion of this security is pledged as equity index swap collateral at September 30, 2007.
* Price Return based on Topix 100 Index +/- financing at a variable rate.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
67
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
SMALL-CAP VALUE FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
COMMON STOCKS 99.9%
Gibraltar Industries, Inc.
2,288
$
42,328
ABM Industries, Inc.
2,027
40,499
CONSUMER DISCRETIONARY 19.8%
Standex International Corp.†
1,941
40,140
Libbey, Inc.†
10,633
$
186,290
Apogee Enterprises, Inc.
1,500
38,910
Superior Industries
Barnes Group, Inc.†
1,189
37,953
International, Inc.†
4,835
104,871
Wabash National Corp.†
3,210
36,241
Monaco Coach Corp.
5,794
81,290
Shaw Group, Inc.*
590
34,279
La-Z-Boy, Inc.†
10,175
75,092
Applied Signal Technology, Inc.
2,515
34,003
PEP Boys-Manny Moe & Jack
5,280
74,078
URS Corp.*
580
32,741
Sonic Automotive, Inc.
3,090
73,975
Mueller Industries, Inc.
895
32,345
Standard Motor Products, Inc.
7,048
66,251
Albany International Corp. —
Fred’s, Inc.†
6,233
65,634
Class A
848
31,791
Bassett Furniture Industries, Inc.
5,693
59,093
Universal Forest Products, Inc.
1,050
31,395
Ashworth, Inc.*
9,477
58,284
Lennox International, Inc.
850
28,730
Jo-Ann Stores, Inc.*
2,721
57,413
Bowne & Co., Inc.
1,562
26,023
Coachmen Industries, Inc.
8,259
55,335
Tredegar Corp.
1,454
25,081
Arctic Cat, Inc.���
3,340
54,642
Volt Information Sciences, Inc.*
1,068
18,840
Fleetwood Enterprises, Inc.*†
6,057
51,787
Total Industrials
1,458,417
Haverty Furniture Cos., Inc.†
5,859
51,383
FINANCIALS 15.6%
Landry’s Restaurants, Inc.†
1,820
48,157
Building Material Holding
Stewart Information Services
Corp.†
4,140
43,801
Corp.
2,828
96,916
LandAmerica Financial
Group 1 Automotive, Inc.†
1,198
40,217
O’Charleys, Inc.
2,368
Group, Inc.†
1,877
73,166
35,899
Flagstar Bancorp, Inc.†
6,919
67,322
Jakks Pacific, Inc.*
1,282
34,242
Cost Plus, Inc.*†
8,355
33,587
First Bancorp Puerto Rico†
6,439
61,171
National Retail Properties, Inc.†
2,271
55,367
M/I Homes, Inc.†
2,337
32,461
National Presto Industries, Inc.
589
31,217
Dime Community Bancshares†
3,263
48,847
Audiovox Corp. — Class A*
2,961
30,469
Lexington Realty Trust†
2,237
44,762
Parkway Properties, Inc.
1,003
44,272
Kellwood Co.
1,636
27,894
Senior Housing Properties
Champion Enterprises, Inc.*†
2,310
25,364
Trust†
1,950
43,017
Marcus Corp.
1,309
25,133
Skyline Corp.
746
22,440
Brookline Bancorp, Inc.†
3,633
42,107
Stein Mart, Inc.
2,572
19,573
LTC Properties, Inc.†
1,728
40,902
First Commonwealth Financial
Radio One, Inc.*
5,223
19,482
Standard-Pacific Corp.†
Corp.†
3,383
37,416
3,374
18,523
Ethan Allen Interiors, Inc.†
510
16,672
SWS Group, Inc.
2,086
36,901
Total Consumer Discretionary
1,620,549
Colonial Properties Trust†
987
33,854
Presidential Life Corp.
1,927
32,682
INDUSTRIALS 17.9%
Community Bank System, Inc.
1,641
32,032
Spherion Corp.*
13,537
111,816
Susquehanna Bancshares, Inc.
1,483
29,808
C&D Technologies, Inc.*†
22,334
111,223
South Financial Group, Inc.
1,278
29,062
Standard Register Co.
8,356
106,205
Provident Bankshares Corp.†
896
28,072
Kaman Corp. — Class A
2,207
76,274
LaBranche & Co., Inc.*
5,677
26,568
Briggs & Stratton Corp.†
2,922
73,576
First Financial Bancorp†
1,989
25,419
A.O. Smith Corp.
1,478
64,855
TrustCo Bank Corp.
2,270
24,811
Mesa Air Group, Inc.*
11,870
52,703
Inland Real Estate Corp.†
1,590
24,629
CDI Corp.†
1,821
50,769
Selective Insurance Group, Inc.†
1,152
24,515
United Stationers, Inc.*
908
50,412
Entertainment Properties Trust
482
24,486
Lydall, Inc.*
5,146
47,755
Sterling Bancorp
1,735
24,290
Arkansas Best Corp.†
1,434
46,834
Kite Realty Group Trust
1,270
23,876
Angelica Corp.
2,345
46,220
Sovran Self Storage, Inc.†
517
23,699
SkyWest, Inc.†
1,786
44,954
Whitney Holding Corp.
872
23,003
Frontier Airlines Holdings, Inc.*†
7,031
43,522
Piper Jaffray Cos., Inc.*
399
21,386
68
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
SMALL-CAP VALUE FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Bank Mutual Corp.
1,710
$
20,161
Atmos Energy Corp.†
2,662
$
75,388
Fremont General Corp.†
4,259
16,610
Cleco Corp.†
2,692
68,027
Mid-America Apartment
Laclede Group, Inc.
2,076
67,013
Communities, Inc.
330
16,451
CH Energy Group, Inc.
1,311
62,666
SCPIE Holdings Inc.*
724
16,109
Avista Corp.
2,374
48,311
Medical Properties Trust Inc.
1,170
15,584
Northwest Natural Gas Co.†
1,008
46,065
Central Pacific Financial Corp.†
530
15,476
Unisource Energy Corp.
1,438
42,982
Safety Insurance Group, Inc.
428
15,382
New Jersey Resources Corp.†
840
41,656
Irwin Financial Corp.
1,300
14,326
UGI Corp.
1,600
41,568
Total Financials
1,274,457
UIL Holding Corp.
1,284
40,446
MATERIALS 13.8%
Southwest Gas Corp.
1,257
35,560
Ryerson, Inc.†
4,709
158,882
Allete, Inc.†
791
35,405
Penford Corp.
3,197
120,527
Piedmont Natural Gas Co.†
1,400
35,126
Quaker Chemical Corp.
3,743
88,035
South Jersey Industries, Inc.
891
31,007
Arch Chemicals, Inc.†
1,598
74,914
Total Utilities
824,688
PolyOne Corp.*
9,997
74,678
CONSUMER STAPLES 6.7%
Chesapeake Corp.
8,527
72,138
Nash Finch Co.†
4,974
198,115
A. Schulman, Inc.
3,633
71,679
Performance Food Group Co.*
2,893
87,166
Georgia Gulf Corp.†
4,744
65,942
Longs Drug Stores Corp.†
1,570
77,982
Schweitzer-Mauduit
Lance, Inc.
2,164
49,815
International, Inc.
2,576
60,021
Spartan Stores, Inc.
1,840
41,455
Rock-Tenn Co. — Class A
1,751
50,604
Casey’s General Stores, Inc.
1,366
37,838
Omnova Solutions, Inc.*
8,455
48,870
Alliance One International, Inc.*
5,698
37,265
Quanex Corp.
900
42,282
Spectrum Brands, Inc.*†
3,598
20,869
Buckeye Technologies, Inc.*
2,357
35,685
Total Consumer Staples
550,505
Caraustar Industries, Inc.*
6,601
29,440
Tronox, Inc.
HEALTH CARE 5.8%
3,216
29,041
Wausau Paper Corp.
2,515
Owens & Minor, Inc.†
28,042
2,155
82,084
Theragenics Corp.*
16,620
Neenah Paper, Inc.
74,624
814
26,935
RehabCare Group, Inc.*
4,200
73,878
A.M. Castle & Co.
824
26,862
Material Sciences Corp.*
2,524
26,805
Datascope Corp.
1,565
52,913
Invacare Corp.†
2,220
51,903
Total Materials
1,131,382
Res-Care, Inc.*
1,620
37,001
INFORMATION TECHNOLOGY 10.2%
Medcath Corp.*†
1,340
36,796
MIVA, Inc.*†
24,576
115,999
Alpharma, Inc. — Class A†
1,550
33,108
Anixter International, Inc.*†
1,069
88,139
Gentiva Health Services, Inc.*
1,495
28,719
Agilysys, Inc.
5,111
86,376
Total Health Care
471,026
Insight Enterprises, Inc.*
2,866
73,972
Bell Microproducts, Inc.*†
Total Common Stocks
10,469
65,117
(Cost $6,823,778)
8,166,898
United Online, Inc.†
3,890
58,389
Ciber, Inc.*
7,126
55,654
Methode Electronics, Inc. —
Class A
3,585
53,954
Brightpoint, Inc.*
3,540
53,135
Startek, Inc.
5,071
51,369
Park Electrochemical Corp.†
1,168
39,221
Adaptec, Inc.*
7,579
28,952
Tollgrade Communications, Inc.*
2,755
27,881
Photronics, Inc.*
1,656
18,895
CTS Corp.†
1,459
18,821
Total Information Technology
835,874
UTILITIES 10.1%
Central Vermont Public
Service Corp.
4,200
153,468
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
69
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
SMALL-CAP VALUE FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
REPURCHASE AGREEMENTS 0.5%
Repurchase Agreement (Note 5)
Mizuho Financial Group, Inc.
issued 09/28/07 at 3.96%
due 10/01/07
$
23,958
$
23,958
Lehman Brothers Holdings, Inc.
issued 09/28/07 at 3.90%
due 10/01/07
13,387
13,387
Morgan Stanley
issued 09/28/07 at 3.80%
due 10/01/07
2,818
2,818
Credit Suisse Group
issued 09/28/07 at 3.95%
due 10/01/07
85
85
Total Repurchase Agreements
(Cost $40,248)
40,248
SECURITIES LENDING COLLATERAL 27.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
2,249,027
2,249,027
Total Securities Lending Collateral
(Cost $2,249,027)
2,249,027
Total Investments 127.9%
(Cost $9,113,053)
$ 10,456,173
Liabilities in Excess of
Other Assets – (27.9)%
$ (2,282,272)
Net Assets – 100.0%
$
8,173,901
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
* Non-Income Producing Security.
70
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
MID-CAP VALUE FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
COMMON STOCKS 100.0%
AmeriCredit Corp.*†
3,506
$
61,635
Weingarten Realty Investors
1,477
61,236
UTILITIES 22.4%
Colonial BancGroup, Inc.†
2,794
60,406
Energy East Corp.
13,214
$
357,439
Astoria Financial Corp.†
2,258
59,905
Black Hills Corp.†
7,408
303,876
Puget Energy, Inc.
Total Financials
3,115,486
11,162
273,134
Pepco Holdings, Inc.
MATERIALS 16.1%
9,976
270,150
Lyondell Chemical Co.
13,913
WGL Holdings, Inc.
644,868
7,318
248,007
Northeast Utilities†
8,478
242,217
Olin Corp.†
16,777
375,469
Worthington Industries, Inc.†
11,926
280,977
Oneok, Inc.
4,935
233,919
SCANA Corp.†
5,780
223,917
Ferro Corp.
11,562
231,009
Packaging Corporation
Great Plains Energy, Inc.†
7,201
207,461
of America
6,976
202,792
Vectren Corp.†
7,396
201,837
Bowater, Inc.†
AGL Resources, Inc.
4,784
189,542
13,576
202,554
Chemtura Corp.
19,446
172,875
Westar Energy, Inc.
7,006
172,067
Hawaiian Electric Industries, Inc.
RPM International, Inc.†
7,206
172,584
7,817
169,707
Louisiana-Pacific Corp.
9,521
161,571
National Fuel Gas Co.†
3,473
162,571
Lubrizol Corp.
2,424
157,705
OGE Energy Corp.†
4,713
156,000
Alliant Energy Corp.†
3,677
Sensient Technologies Corp.
5,012
144,696
140,903
PNM Resources, Inc.†
5,107
118,891
Cytec Industries, Inc.
1,797
122,897
Sonoco Products Co.
2,087
62,986
IDACORP, Inc.
3,573
116,980
Cabot Corp.
1,354
48,108
NSTAR
3,041
105,857
Wisconsin Energy Corp.
2,043
91,996
Total Materials
2,981,091
DPL, Inc.†
3,082
80,933
CONSUMER DISCRETIONARY 14.8%
Sierra Pacific Resources
4,635
72,909
Lear Corp.*†
13,269
425,935
Total Utilities
4,140,313
Modine Manufacturing Co.
11,910
317,044
Furniture Brands International,
FINANCIALS 16.8%
First American Corp.
6,238
228,435
Inc.†
24,601
249,454
Unitrin, Inc.
3,894
193,103
Tupperware Brands Corp.
7,641
240,615
American Greetings Corp.
Old Republic International Corp.
9,688
181,553
— Class A
6,666
Potlatch Corp.
175,982
3,992
179,760
ArvinMeritor, Inc.†
10,180
171,228
Mercury General Corp.
2,856
154,024
Equity One, Inc.†
Belo Corp. — Class A
9,116
158,254
5,286
143,779
Scholastic Corp.*
4,358
151,920
First Niagara Financial Group,
Inc.†
10,066
142,434
BorgWarner, Inc.†
1,657
151,665
Media General, Inc.
4,445
122,282
Washington Federal, Inc.†
5,380
141,279
Borders Group, Inc.†
Horace Mann Educators Corp.
6,587
129,830
9,066
120,850
Hospitality Properties Trust†
Bob Evans Farms, Inc.
2,937
119,389
3,467
104,634
Rayonier, Inc.†
2,450
117,698
Saks, Inc.
5,782
99,161
Callaway Golf Co.
5,744
91,961
American Financial Group, Inc.
4,003
114,166
Foot Locker, Inc.
5,494
84,223
FirstMerit Corp.†
5,681
112,257
Lee Enterprises, Inc.
4,808
74,861
Nationwide Health Properties,
Inc.†
3,516
105,937
Total Consumer Discretionary
2,740,069
Protective Life Corp.
2,475
105,039
INDUSTRIALS 12.4%
Fidelity National Financial, Inc.
Avis Budget Group, Inc.*
20,585
471,191
— Class A†
5,910
103,307
Timken Co.†
7,837
291,145
Liberty Property Trust
2,326
93,528
Deluxe Corp.†
7,316
269,521
Cousins Properties, Inc.†
3,166
92,954
YRC Worldwide, Inc.*†
8,531
233,067
Associated Banc-Corp.
3,120
92,446
Kelly Services, Inc.
8,707
172,486
Mack-Cali Realty Corp.†
2,243
92,187
United Rentals, Inc.*
4,420
142,191
Highwoods Properties, Inc.
2,510
92,042
Sequa Corp. — Class A*
792
131,298
Webster Financial Corp.
1,675
70,551
Alexander & Baldwin, Inc.†
2,353
117,956
Duke Realty Corp.
1,970
66,606
Werner Enterprises, Inc.†
6,210
106,501
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
71
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
MID-CAP VALUE FUND
VALUE
FACE
MARKET
MARKET
SHARES
(NOTE 1)
AMOUNT
(NOTE 1)
VALUE
Con-way, Inc.
1,975
$
90,850
SECURITIES LENDING COLLATERAL 22.2%
Kennametal, Inc.
1,071
89,943
Investment in Securities Lending Short Term
Manpower, Inc.†
1,150
74,002
Investment Portfolio Held by
Pentair, Inc.†
2,044
67,820
U.S. Bank (Note 8)
$ 4,110,833
$
4,110,833
Alaska Air Group, Inc.*
1,602
36,990
Total Securities Lending Collateral
Total Industrials
2,294,961
(Cost $4,110,833)
4,110,833
INFORMATION TECHNOLOGY 7.6%
Avnet, Inc.*
Total Investments 122.2%
9,467
377,355
(Cost $19,332,697)
Ingram Micro, Inc. — Class A*
10,912
213,984
$ 22,622,932
Arrow Electronics, Inc.*
4,731
201,162
Liabilities in Excess of
Vishay Intertechnology, Inc.*
13,718
178,745
Other Assets – (22.2)%
$ (4,104,271)
Tech Data Corp.*†
4,216
169,146
Net Assets – 100.0%
$ 18,518,661
Andrew Corp.*
9,689
134,193
KEMET Corp.*
77,484
Fairchild Semiconductor
International, Inc.*
3,353
62,634
Total Information Technology
1,414,703
CONSUMER STAPLES 7.6%
Universal Corp.†
6,514
318,860
Smithfield Foods, Inc.*
8,017
252,536
Ruddick Corp.†
7,164
240,281
PepsiAmericas, Inc.
5,851
189,806
BJ’s Wholesale Club, Inc.*
4,876
161,688
J.M. Smucker Co.†
2,357
125,911
Lancaster Colony Corp.
3,182
121,457
Total Consumer Staples
1,410,539
ENERGY 1.8%
Overseas Shipholding Group,
Inc.†
2,638
202,677
Forest Oil Corp.*†
2,945
126,753
Total Energy
329,430
TELECOMMUNICATION SERVICES 0.5%
Telephone & Data Systems, Inc.
1,281
85,507
Total Telecommunication Services
85,507
Total Common Stocks
(Cost $15,221,864)
18,512,099
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
* Non-Income Producing Security.
72
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
LARGE-CAP VALUE FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 100.2%
Public Service Enterprise
Group, Inc.
2,521
$
221,823
FINANCIALS 21.3%
Nicor, Inc.†
4,861
208,537
Fannie Mae
8,367
$
508,797
CMS Energy Corp.
12,213
205,423
XL Capital Ltd.†
4,093
324,166
TECO Energy, Inc.†
12,227
200,890
UnumProvident Corp.
12,072
295,402
American Electric Power Co.,
Washington Mutual, Inc.
6,147
217,051
Inc.
4,336
199,803
Cincinnati Financial Corp.
4,990
216,117
Duke Energy Corp.†
10,491
196,077
ACE Ltd.
3,553
215,205
Southern Co.
5,231
189,781
Travelers Cos, Inc.
4,059
204,330
FirstEnergy Corp.†
2,972
188,246
JPMorgan Chase & Co.
4,075
186,716
Dominion Resources, Inc.
2,067
174,248
Allstate Corp.
3,144
179,805
PG&E Corp.
3,249
155,302
Wachovia Corp.†
3,421
171,563
Sempra Energy
2,533
147,218
Hartford Financial Services
PPL Corp.
2,719
125,890
Group, Inc.
1,848
171,032
Entergy Corp.
1,124
121,718
First Horizon National Corp.†
6,413
170,971
FPL Group, Inc.
1,986
120,908
National City Corp.†
6,646
166,748
Regions Financial Corp.†
5,447
160,578
Total Utilities
5,252,488
CONSUMER DISCRETIONARY 16.0%
Lincoln National Corp.
2,409
158,922
Comerica, Inc.
3,090
158,455
Ford Motor Co.*†
83,661
710,282
General Motors Corp.†
11,300
414,710
Citigroup, Inc.
3,175
148,177
Bank of America Corp.
2,934
147,492
CBS Corp.
7,968
250,992
AutoNation, Inc.*†
14,015
248,346
KeyCorp
4,554
147,231
Plum Creek Timber Co.,
Whirlpool Corp.
2,628
234,155
Inc. (REIT)
3,287
147,126
Johnson Controls, Inc.
1,955
230,905
Genworth Financial, Inc. —
Dillard’s, Inc. — Class A†
10,017
218,671
Eastman Kodak Co.†
7,330
196,151
Class A
4,336
133,245
Goodyear Tire & Rubber Co.*†
5,798
176,317
BB&T Corp.
3,258
131,591
SAFECO Corp.
2,115
Brunswick Corp.†
7,535
172,250
129,480
Leggett & Platt, Inc.†
PNC Financial Services Group,
7,994
153,165
Dow Jones & Co., Inc.†
2,530
151,041
Inc.
1,849
125,917
Genuine Parts Co.
2,530
126,500
Chubb Corp.
2,226
119,403
OfficeMax, Inc.
Huntington Bancshares, Inc.†
3,611
123,749
7,018
119,166
Wyndham Worldwide Corp.
3,650
119,574
CIT Group, Inc.
2,878
115,696
Tribune Co.
4,216
115,181
Apartment Investment &
Management Co. — Class A†
2,522
113,818
New York Times Co. —
Class A†
Fifth Third Bancorp†
3,338
113,091
5,014
99,077
Jones Apparel Group, Inc.†
4,127
87,203
SunTrust Banks, Inc.
1,419
107,376
U.S. Bancorp
3,267
106,276
Newell Rubbermaid, Inc.
2,932
84,500
Boston Properties, Inc.
960
99,744
Time Warner, Inc.
4,597
84,401
Stanley Works†
1,500
84,195
Wells Fargo & Co.
2,528
90,047
Gannett Co., Inc.
1,580
69,046
Bear Stearns Cos., Inc.
494
60,668
Macy’s, Inc.
1,994
64,446
Total Financials
5,661,402
Circuit City Stores, Inc.†
5,914
46,780
UTILITIES 19.8%
Integrys Energy Group, Inc.
8,598
440,476
Total Consumer Discretionary
4,261,637
DTE Energy Co.†
7,005
339,322
MATERIALS 9.8%
Temple-Inland, Inc.†
5,391
Progress Energy, Inc.†
6,231
291,922
283,728
Xcel Energy, Inc.
12,735
Dow Chemical Co.
5,408
232,868
274,312
NiSource, Inc.†
13,621
260,706
MeadWestvaco Corp.
7,768
229,389
Weyerhaeuser Co.†
3,131
226,371
Consolidated Edison, Inc.
5,595
259,048
CenterPoint Energy, Inc.†
15,467
Eastman Chemical Co.†
3,375
225,214
247,936
Pinnacle West Capital Corp.
5,996
236,902
Ashland, Inc.
3,599
216,696
Dynegy Inc.*
24,206
223,663
Alcoa, Inc.
5,218
204,128
Ameren Corp.
4,235
222,337
Freeport-McMoRan Copper
& Gold, Inc. — Class B
1,830
191,949
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
73
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
LARGE-CAP VALUE FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
International Paper Co.
4,780
$
171,459
Bausch & Lomb, Inc.
1,440
$
92,160
United States Steel Corp.
1,442
152,765
Tenet Healthcare Corp.*
23,779
79,897
PPG Industries, Inc.
2,020
152,611
Total Health Care
965,085
Air Products & Chemicals, Inc.
1,410
137,842
ENERGY 3.0%
Bemis Co.
2,882
83,895
Rohm & Haas Co.
1,451
80,777
ConocoPhillips
3,914
343,532
Total Materials
2,589,692
Marathon Oil Corp.
4,040
230,361
Hess Corp.
3,320
220,879
CONSUMER STAPLES 9.0%
SUPERVALU, Inc.
10,458
407,966
Total Energy
794,772
INFORMATION TECHNOLOGY 2.6%
Tyson Foods, Inc. — Class A
18,796
335,509
Molson Coors Brewing Co. —
Solectron Corp.*
83,467
325,521
Computer Sciences Corp.*
2,959
165,408
Class B
2,992
298,213
Unisys Corp.*
12,102
Kroger Co.
8,493
242,220
80,115
Coca-Cola Enterprises, Inc.†
Micron Technology, Inc.*†
5,848
64,913
9,459
229,097
Electronic Data Systems Corp.
2,759
60,257
696,214
Sara Lee Corp.
12,771
213,148
Safeway, Inc.
4,825
159,756
Total Information Technology
ConAgra Foods, Inc.
5,994
156,623
Total Common Stocks
Costco Wholesale Corp.
2,259
138,635
(Cost $21,138,609)
26,649,622
Kraft Foods, Inc. — Class A
3,470
119,750
AMOUNT
Reynolds American, Inc.†
1,545
98,246
FACE
Total Consumer Staples
2,399,163
TELECOMMUNICATION SERVICES 8.2%
REPURCHASE AGREEMENTS 0.6%
Embarq Corp.
9,302
517,191
Repurchase Agreement (Note 5)
Verizon Communications, Inc.
8,041
356,055
Mizuho Financial Group, Inc.
Windstream Corp.†
22,026
311,007
issued 09/28/07 at 3.96%
Citizens Communications Co.†
16,522
236,595
due 10/01/07
$
89,044
89,044
Alltel Corp.
3,204
223,255
Lehman Brothers Holdings, Inc.
AT&T, Inc.
5,186
219,420
issued 09/28/07 at 3.90%
Sprint Nextel Corp.†
10,819
205,561
due 10/01/07
49,755
49,755
issued 09/28/07 at 3.80%
CenturyTel, Inc.
2,573
118,924
Morgan Stanley
Total Telecommunication Services
2,188,008
INDUSTRIALS 6.9%
due 10/01/07
10,476
10,476
Cummins, Inc.
2,732
349,395
Credit Suisse Group
issued 09/28/07 at 3.95%
RR Donnelley & Sons Co.
6,171
225,612
Ryder System, Inc.†
due 10/01/07
314
314
4,494
220,206
Northrop Grumman Corp.
Total Repurchase Agreements
2,729
212,862
(Cost $149,589)
149,589
Paccar, Inc.
1,710
145,778
Allied Waste Industries, Inc.*†
10,450
133,238
SECURITIES LENDING COLLATERAL 16.2%
Masco Corp.
5,143
119,163
Investment in Securities Lending Short Term
Goodrich Corp.
1,740
118,720
Raytheon Co.
1,818
116,025
Investment Portfolio Held by
Union Pacific Corp.
U.S. Bank (Note 8)
4,312,404
4,312,404
1,012
114,417
Total Securities Lending Collateral
Waste Management, Inc.
2,272
85,745
(Cost $4,312,404)
4,312,404
Total Investments 117.0%
Total Industrials
1,841,161
HEALTH CARE 3.6%
(Cost $25,600,602)
$ 31,111,615
AmerisourceBergen Corp.
6,160
279,233
McKesson Corp.
4,265
250,739
Liabilities in Excess of
Medco Health Solutions, Inc.*
1,720
155,471
Other Assets – (17.0)%
$ (4,515,890)
Bristol-Myers Squibb Co.
3,733
107,585
Net Assets – 100.0%
$ 26,595,725
* Non-Income Producing Security.
REIT—Real Estate Investment Trust.
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
74
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
SMALL-CAP GROWTH FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.8%
PharmaNet Development
Group, Inc.*†
6,450
$
187,244
CONSUMER DISCRETIONARY 23.6%
Dionex Corp.*
2,241
178,070
PetMed Express, Inc.*
17,545
$
245,805
HealthExtras, Inc.*
6,374
177,388
Coinstar, Inc.*†
7,497
241,179
PolyMedica Corp.
3,374
177,202
Pre-Paid Legal Services, Inc.*
4,307
238,866
Sunrise Senior Living, Inc.*
4,857
171,792
Fossil, Inc.*†
5,773
215,679
AMN Healthcare Services,
LKQ Corp.*†
5,453
189,819
Inc.*
8,520
159,580
Drew Industries, Inc.*†
4,412
179,480
Hologic, Inc.*†
2,590
157,990
CROCS, Inc.*†
2,566
172,564
Bradley Pharmaceuticals, Inc.*
8,453
153,845
Deckers Outdoor Corp.*†
1,571
172,496
Cooper Cos., Inc.
2,913
152,699
Multimedia Games, Inc.*†
19,986
170,281
Amedisys, Inc.*†
3,956
151,990
Stage Stores, Inc.
8,887
162,010
Pediatrix Medical Group, Inc.*
2,246
146,933
Tractor Supply Co.*†
3,506
161,592
Idexx Laboratories, Inc.*
1,304
142,905
Monarch Casino & Resort,
Respironics, Inc.*
2,959
142,121
Inc.*
5,465
155,479
ArthroCare Corp.*
2,389
133,521
Guitar Center, Inc.*†
2,538
150,503
AmSurg Corp.*
5,765
132,999
Sonic Corp.*
6,284
147,046
Mentor Corp.†
2,725
125,486
Jos. A. Bank Clothiers, Inc.*†
4,276
142,904
Greatbatch, Inc.*†
4,654
123,750
Panera Bread Co. — Class A*†
3,452
140,842
Sciele Pharma, Inc.*†
4,434
115,373
P.F. Chang’s China Bistro, Inc.*†
4,738
140,245
American Medical Systems
K-Swiss, Inc. — Class A†
5,974
136,864
Holdings, Inc.*†
6,579
111,514
Bright Horizons Family
Kensey Nash Corp.*
4,251
110,994
Solutions, Inc.*†
2,967
127,106
Merit Medical Systems, Inc.*
7,573
98,298
Christopher & Banks Corp.†
9,888
119,843
BioLase Technology, Inc.*†
14,074
96,266
Pool Corp.†
4,796
119,804
Odyssey HealthCare, Inc.*
9,440
90,718
Shuffle Master, Inc.*†
7,705
115,190
ICU Medical, Inc.*†
2,047
79,321
Winnebago Industries, Inc.†
4,721
112,738
Noven Pharmaceuticals, Inc.*
2,375
37,834
Papa John’s International, Inc.*
4,596
112,326
Total Health Care
4,695,695
Hibbett Sports Inc.*†
4,306
106,789
INFORMATION TECHNOLOGY 22.3%
Quiksilver, Inc.*
7,421
106,120
Flir Systems, Inc.*†
7,216
399,694
Jack in the Box, Inc.*
1,631
105,754
Bankrate, Inc.*†
HOT Topic, Inc.*
13,624
101,635
6,095
281,101
Nautilus, Inc.†
12,675
101,020
Itron, Inc.*†
3,001
279,303
CEC Entertainment, Inc.*
j2 Global Communications,
3,181
85,473
Gymboree Corp.*†
2,405
84,752
Inc.*†
8,417
275,488
EPIQ Systems, Inc.*
13,375
251,717
Dress Barn, Inc.*
3,683
62,648
Netgear, Inc.*
6,932
210,871
Meritage Homes Corp.*†
4,362
61,591
Tween Brands, Inc.*†
Factset Research Systems, Inc.†
3,046
208,803
1,779
58,422
Trimble Navigation Ltd.*
5,274
206,794
Children’s Place Retail Stores,
Ansys, Inc.*†
Inc.*†
1,518
36,857
5,976
204,200
Synaptics, Inc.*
4,143
197,870
Total Consumer Discretionary
4,781,722
AMIS Holdings, Inc.*
19,643
190,734
HEALTH CARE 23.1%
Websense, Inc.*
9,547
188,362
Possis Medical, Inc.*
19,090
258,669
Comtech Telecommunications
Integra LifeSciences Holdings
Corp.*†
3,301
176,570
Corp.*†
5,288
256,891
Blackbaud, Inc.
6,557
165,499
Healthways, Inc.*†
4,155
224,245
Tyler Technologies, Inc.*†
12,060
161,001
SurModics, Inc.*†
4,425
216,869
Cabot Microelectronics Corp.*†
3,229
138,040
Sierra Health Services, Inc.*
4,566
192,640
Scansource, Inc.*
4,853
136,418
Immucor, Inc.*†
5,330
190,548
Quality Systems, Inc.†
3,399
124,505
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
75
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
SMALL-CAP GROWTH FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Take-Two Interactive
INDUSTRIALS 8.3%
Software, Inc.*†
7,065
$
120,670
Ceradyne, Inc.*†
3,247
$
245,928
CACI International, Inc. —
Curtiss-Wright Corp.
3,803
180,642
Class A*†
2,340
119,551
Landstar System, Inc.†
3,561
149,455
Mantech International Corp. —
Waste Connections, Inc.*†
4,489
142,571
Class A*
3,309
119,058
Toro Co.
2,419
142,310
Diodes, Inc.*
3,445
110,585
Simpson Manufacturing Co.,
Micros Systems, Inc.*†
1,457
94,807
Inc.†
3,979
126,731
Manhattan Associates, Inc.*
3,199
87,685
Knight Transportation, Inc.†
7,222
124,290
Daktronics, Inc.†
3,027
82,395
ASV, Inc.*†
7,957
111,637
Total Information Technology
4,531,721
Heartland Express, Inc.†
7,387
105,486
ENERGY 9.7%
Manitowoc Co., Inc.
2,378
105,298
W-H Energy Services, Inc.*
3,085
227,519
Forward Air Corp.†
3,328
99,108
Stone Energy Corp.*
5,084
203,411
Kirby Corp.*
2,028
89,516
St. Mary Land & Exploration
Mobile Mini, Inc.*
2,873
69,412
Co.†
5,207
185,734
Total Industrials
1,692,384
Hornbeck Offshore Services,
CONSUMER STAPLES 2.3%
Inc.*
4,965
182,215
Sanderson Farms, Inc.†
5,207
216,976
CARBO Ceramics, Inc.†
3,255
165,126
USANA Health Sciences, Inc.*†
3,859
168,831
Petroleum Development
United Natural Foods, Inc.*
3,136
85,362
Corp.*†
3,578
158,684
Helix Energy Solutions Group,
Total Consumer Staples
471,169
MATERIALS 0.7%
Inc.*†
3,708
157,442
Oceaneering International, Inc.*
2,058
155,996
Headwaters, Inc.*†
9,781
145,541
Penn Virginia Corp.
3,394
149,268
Total Materials
145,541
Unit Corp.*
3,080
149,072
TELECOMMUNICATION SERVICES 0.5%
Swift Energy Co.*†
2,809
114,944
General Communication,
Cabot Oil & Gas Corp.
3,191
112,196
Inc. — Class A*
8,408
102,073
Total Energy
1,961,607
Total Telecommunication Services
102,073
FINANCIALS 9.3%
Total Common Stocks
optionsXpress Holdings, Inc.
10,190
266,367
(Cost $17,125,070)
20,271,451
Portfolio Recovery Associates,
AMOUNT
Inc.†
4,499
238,762
FACE
Infinity Property & Casualty
Corp.
4,836
194,504
REPURCHASE AGREEMENTS 0.1%
Rewards Network, Inc.*†
32,094
155,656
Repurchase Agreement (Note 5)
Hilb Rogal & Hobbs Co.
2,976
128,950
Mizuho Financial Group, Inc.
UCBH Holdings, Inc.†
6,184
108,096
issued 09/28/07 at 3.96%
Philadelphia Consolidated
due 10/01/07
$
14,976
14,976
Holding Corp.*
2,552
105,500
Lehman Brothers Holdings, Inc.
Nara Bancorp, Inc.
6,480
101,218
issued 09/28/07 at 3.90%
Wilshire Bancorp, Inc.
9,057
99,355
due 10/01/07
8,368
8,368
World Acceptance Corp.*
2,936
97,123
Morgan Stanley
PrivateBancorp, Inc.†
2,779
96,820
issued 09/28/07 at 3.80%
East-West Bancorp, Inc.†
2,219
79,795
due 10/01/07
1,762
1,762
Investment Technology Group,
Credit Suisse Group
Inc.*
1,847
79,384
issued 09/28/07 at 3.95%
Cascade Bancorp.†
3,363
74,860
due 10/01/07
53
53
Franklin Bank Corp.*
6,864
63,149
Total Repurchase Agreements
Total Financials
1,889,539
(Cost $25,159)
25,159
76
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
SMALL-CAP GROWTH FUND
FACE
VALUE
MARKET
AMOUNT
(NOTE 1)
SECURITIES LENDING COLLATERAL 29.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
$ 5,899,225
$
5,899,225
Total Securities Lending Collateral
(Cost $5,899,225)
5,899,225
Total Investments 128.9%
(Cost $23,049,454)
$ 26,195,835
Liabilities in Excess of
Other Assets – (28.9)%
$ (5,877,983)
Net Assets – 100.0%
$ 20,317,852
* 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
|
77
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
MID-CAP GROWTH FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
COMMON STOCKS 99.8%
Ventana Medical Systems, Inc.*
2,263
$
194,414
Community Health Systems,
CONSUMER DISCRETIONARY 30.1%
Inc.*†
6,156
193,545
GameStop Corp. — Class A*
7,158
$
403,353
Invitrogen Corp.*†
2,290
187,162
ITT Educational Services, Inc.*
2,693
327,711
Cephalon, Inc.*†
2,560
187,034
Corinthian Colleges, Inc.*†
18,976
301,908
Apria Healthcare Group, Inc.*†
7,144
185,815
Strayer Education, Inc.†
1,767
297,969
Lincare Holdings, Inc.*
4,840
177,386
Career Education Corp.*
9,139
255,801
Techne Corp.*
2,667
168,234
Aeropostale, Inc.*†
12,410
236,535
DENTSPLY International, Inc.
3,868
161,063
Thor Industries, Inc.
4,366
196,426
ResMed, Inc.*†
3,643
156,175
Dollar Tree Stores, Inc.*†
4,734
191,916
Pharmaceutical Product
Dick’s Sporting Goods, Inc.*†
2,793
187,550
Development, Inc.
4,208
149,132
Scientific Games Corp. —
Cerner Corp.*†
2,419
144,680
Class A*
4,929
185,331
Henry Schein, Inc.*
2,377
144,617
NVR, Inc.*†
374
175,874
Universal Health Services, Inc.
Petsmart, Inc.†
5,206
166,071
— Class B
2,448
133,220
Urban Outfitters, Inc.*
7,460
162,628
Sepracor, Inc.*
4,585
126,087
Matthews International Corp. —
Medicis Pharmaceutical Corp. —
Class A
3,650
159,870
Class A†
3,611
110,172
Advance Auto Parts, Inc.
4,717
158,303
Health Management Associates,
Chico’s FAS, Inc.*†
11,254
158,119
Inc. — Class A
15,548
107,903
Applebee’s International, Inc.†
6,355
158,112
Affymetrix, Inc.*†
3,440
87,273
Williams-Sonoma, Inc.†
4,804
156,707
Covance, Inc.*†
1,109
86,391
John Wiley & Sons, Inc. —
Edwards Lifesciences Corp.*†
1,447
71,352
Class A
3,423
153,795
Total Health Care
3,927,460
Ross Stores, Inc.
5,618
144,046
99 Cents Only Stores*
INFORMATION TECHNOLOGY 14.0%
13,358
137,187
Cheesecake Factory, Inc.*†
5,615
DST Systems, Inc.*†
3,434
294,672
131,784
O’Reilly Automotive, Inc.*†
3,886
129,831
Western Digital Corp.*
11,400
288,648
Pacific Sunwear of California,
Silicon Laboratories, Inc.*†
6,354
265,343
Cree, Inc.*†
6,890
214,279
Inc.*†
8,768
129,766
CDW Corp.*
2,072
180,678
Brinker International, Inc.
4,498
123,425
Toll Brothers, Inc.*†
5,862
117,181
Plantronics, Inc.†
6,224
177,695
Catalina Marketing Corp.*
3,536
114,531
Alliance Data Systems Corp.*†
2,215
171,530
DeVry, Inc.
2,785
103,073
McAfee, Inc.*
4,601
160,437
Amphenol Corp. — Class A
3,722
147,987
American Eagle Outfitters, Inc.
3,867
101,741
Global Payments, Inc.
International Speedway Corp. —
3,300
145,926
Class A
2,162
SRA International, Inc. — Class A*
4,590
128,887
99,149
Jack Henry & Associates, Inc.
4,621
119,499
Timberland Co. — Class A*†
5,085
96,412
Entercom Communications
Macrovision Corp.*
4,790
117,978
Fair Isaac Corp.†
2,564
92,586
Corp.†
4,680
90,464
Zebra Technologies Corp. —
Ryland Group, Inc.†
3,849
82,484
Class A*†
2,454
89,546
Ruby Tuesday, Inc.
4,404
80,769
Activision, Inc.*†
3,798
81,999
Hovnanian Enterprises, Inc. —
Class A*†
7,008
77,719
CSG Systems International, Inc.*
3,622
76,967
Valassis Communications, Inc.*†
7,845
69,977
Total Information Technology
2,754,657
Harte-Hanks, Inc.
3,173
62,445
INDUSTRIALS 12.3%
Total Consumer Discretionary
5,925,963
Alliant Techsystems, Inc.*
2,409
263,304
Stericycle, Inc.*
HEALTH CARE 20.0%
3,474
198,574
Cytyc Corp.*
7,801
Expeditors International
371,718
Gen-Probe, Inc.*†
4,886
325,310
Washington, Inc.
3,713
175,625
Jacobs Engineering Group,
Endo Pharmaceuticals Holdings,
Inc.*
7,568
234,684
Inc.*†
2,274
171,869
Rollins, Inc.†
6,289
167,853
Par Pharmaceutical Cos., Inc.*
12,074
224,093
78
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
MID-CAP GROWTH FUND
VALUE
VALUE
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
Mine Safety Appliances Co.
3,122
$
147,077
UTILITIES 0.5%
Corporate Executive Board Co.
1,944
144,323
Equitable Resources, Inc.
2,061
$
106,904
Copart, Inc.*
4,187
143,991
Fastenal Co.†
3,156
143,314
Total Utilities
106,904
Donaldson Co., Inc.†
Total Common Stocks
3,356
140,147
Oshkosh Truck Corp.†
2,124
131,624
(Cost $15,660,260)
19,630,978
Graco, Inc.†
3,071
120,107
FACE
AMETEK, Inc.
2,418
104,506
AMOUNT
Roper Industries, Inc.†
1,465
95,957
ChoicePoint, Inc.*
2,508
95,103
REPURCHASE AGREEMENTS 0.6%
Mizuho Financial Group, Inc.
AirTran Holdings, Inc.*†
8,678
85,392
Repurchase Agreement (Note 5)
issued 09/28/07 at 3.96%
Dun & Bradstreet Corp.
846
83,424
Total Industrials
2,412,190
due 10/01/07
ENERGY 9.1%
$
63,437
63,437
Lehman Brothers Holdings, Inc.
Frontier Oil Corp.†
6,777
282,194
issued 09/28/07 at 3.90%
Denbury Resources, Inc.*
5,371
240,030
due 10/01/07
35,447
35,447
Pogo Producing Co.
4,381
232,675
Morgan Stanley
Pioneer Natural Resources Co.†
4,570
205,559
issued 09/28/07 at 3.80%
Newfield Exploration Co.*
3,893
187,487
due 10/01/07
7,463
7,463
FMC Technologies, Inc.*
3,204
184,743
Credit Suisse Group
Superior Energy Services*
4,944
175,215
issued 09/28/07 at 3.95%
Quicksilver Resources, Inc.*†
2,551
120,024
due 10/01/07
224
224
Patterson-UTI Energy, Inc.†
4,641
104,747
Total Repurchase Agreements
Southwestern Energy Co.*
1,555
65,077
(Cost $106,571)
106,571
SECURITIES LENDING COLLATERAL 24.4%
Total Energy
1,797,751
FINANCIALS 6.3%
Eaton Vance Corp.
4,854
193,966
Investment in Securities Lending Short Term
Investment Portfolio Held by
Brown & Brown, Inc.
6,978
183,522
W.R. Berkley Corp.
6,108
180,980
U.S. Bank (Note 8)
4,808,236
4,808,236
Nuveen Investments, Inc. —
Total Securities Lending Collateral
Class A
2,637
163,336
(Cost $4,808,236)
4,808,236
Everest Re Group Ltd.
1,385
152,682
SEI Investments Co.
4,726
128,925
Total Investments 124.8%
(Cost $20,575,067)
$ 24,545,785
HCC Insurance Holdings, Inc.†
4,035
115,562
Waddell & Reed Financial,
Liabilities in Excess of
Inc. — Class A†
4,131
111,661
Other Assets – (24.8)%
$ (4,873,153)
Total Financials
Net Assets – 100.0%
$ 19,672,632
1,230,634
CONSUMER STAPLES 4.5%
Energizer Holdings, Inc.*†
2,856
316,587
Hansen Natural Corp.*
5,107
289,465
NBTY, Inc.*
3,678
149,327
Church & Dwight Co., Inc.†
2,566
120,705
Total Consumer Staples
876,084
MATERIALS 3.0%
Steel Dynamics, Inc.†
5,171
241,486
Commercial Metals Co.
6,359
201,262
Cleveland-Cliffs, Inc.†
1,780
156,587
Total Materials
599,335
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
* Non-Income Producing Security.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
79
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
LARGE-CAP GROWTH FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
COMMON STOCKS 99.5%
Darden Restaurants, Inc.
13,480
$
564,273
Nike, Inc. — Class B
9,240
542,018
HEALTH CARE 22.1%
Yum! Brands, Inc.
15,882
537,288
Express Scripts, Inc.*
26,512
$
1,479,900
Starbucks Corp.*†
19,680
515,616
Hospira, Inc.*
31,223
1,294,193
Harley-Davidson, Inc.†
10,951
506,046
Coventry Health Care, Inc.*
18,824
1,171,041
Harman International Industries,
Gilead Sciences, Inc.*
27,472
1,122,781
Inc.†
5,778
499,913
Zimmer Holdings, Inc.*
11,774
953,576
Kohl’s Corp.*
8,698
498,656
Stryker Corp.†
12,200
838,872
Tiffany & Co.
9,334
488,635
Waters Corp.*
11,840
792,333
Black & Decker Corp.†
5,623
468,396
UnitedHealth Group, Inc.
15,345
743,158
Home Depot, Inc.†
13,985
453,673
Quest Diagnostics, Inc.†
12,800
739,456
Omnicom Group, Inc.†
9,243
444,496
Forest Laboratories, Inc.*
19,019
709,219
D.R. Horton, Inc.†
31,844
407,922
Patterson Cos., Inc.*†
18,046
696,756
Liz Claiborne, Inc.†
9,966
342,133
St. Jude Medical, Inc.*†
15,615
688,153
Polo Ralph Lauren Corp.
4,300
334,325
Barr Pharmaceuticals, Inc.*
11,514
655,262
Staples, Inc.
14,258
306,404
IMS Health, Inc.
19,343
592,670
McGraw-Hill Cos., Inc.†
5,640
287,132
Varian Medical Systems, Inc.*†
14,127
591,780
Medtronic, Inc.†
10,174
573,915
Total Consumer Discretionary
18,324,592
INFORMATION TECHNOLOGY 18.5%
Cardinal Health, Inc.
8,864
554,266
Google, Inc. — Class A*
2,122
Amgen, Inc.*†
8,574
485,031
1,203,747
Celgene Corp.*†
6,784
483,767
eBay, Inc.*†
27,022
1,054,398
Nvidia Corp.*
26,193
949,234
Johnson & Johnson, Inc.
7,118
467,653
Cognizant Technology
Humana, Inc.*
6,392
446,673
Becton, Dickinson & Co.†
5,283
433,470
Solutions Corp. — Class A*
11,767
938,654
C.R. Bard, Inc.†
4,910
433,013
Intuit, Inc.*†
28,822
873,307
Boston Scientific Corp.*
29,620
413,199
Electronic Arts, Inc.*
13,163
736,996
Dell, Inc.*
24,789
684,176
Mylan Laboratories, Inc.†
24,863
396,813
Akamai Technologies, Inc.*†
Baxter International, Inc.
6,390
359,629
22,700
652,171
Wyeth
7,501
334,170
Citrix Systems, Inc.*†
16,164
651,733
Fiserv, Inc.*
12,470
634,224
Genzyme Corp.*
5,350
331,486
Yahoo!, Inc.*†
Laboratory Corporation of
22,877
614,019
Oracle Corp.*
27,391
593,015
America Holdings*†
4,134
323,403
Allergan, Inc.
4,720
304,298
SanDisk Corp.*†
9,938
547,584
Millipore Corp.*†
3,824
289,859
Adobe Systems, Inc.*
12,378
540,424
Applera Corp. - Applied
Affiliated Computer Services,
Inc. — Class A*
10,701
Biosystems Group
6,790
235,206
537,618
Total Health Care
19,935,001
Cisco Systems, Inc.*
15,765
521,979
International Business Machines
CONSUMER DISCRETIONARY 20.4%
Corp.†
4,357
513,255
Amazon.com, Inc.*†
26,756
2,492,321
Autodesk, Inc.*
10,200
509,694
Apollo Group, Inc. — Class A*
22,920
1,378,638
Symantec Corp.*†
26,088
505,585
Coach, Inc.*
23,931
1,131,218
National Semiconductor Corp.†
17,710
480,295
Abercrombie & Fitch Co. —
Paychex, Inc.†
11,031
452,271
Class A
9,490
765,843
Qualcomm, Inc.
10,428
440,687
AutoZone, Inc.*†
6,489
753,633
QLogic Corp.*†
25,540
343,513
International Game Technology,
Lexmark International, Inc.*
7,738
321,359
Inc.†
17,437
751,535
Automatic Data Processing, Inc.
6,986
320,867
TJX Cos., Inc.†
24,343
707,651
Network Appliance, Inc.*†
9,928
267,163
Bed Bath & Beyond, Inc.*†
20,099
685,778
Jabil Circuit, Inc.
11,447
261,449
H&R Block, Inc.†
31,697
671,342
KLA-Tencor Corp.†
4,310
240,412
RadioShack Corp.†
29,382
607,032
Fidelity National Information
Best Buy Co., Inc.†
12,888
593,106
Services, Inc.
5,310
235,605
Lowe’s Cos., Inc.
21,041
589,569
Total Information Technology
16,625,434
80
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
September 30, 2007
LARGE-CAP GROWTH FUND
MARKET
MARKET
SHARES
(NOTE 1)
SHARES
(NOTE 1)
VALUE
VALUE
ENERGY 10.5%
INDUSTRIALS 6.0%
XTO Energy, Inc.
21,216
$
1,311,997
L-3 Communications Holdings,
Apache Corp.
12,000
1,080,720
Inc.
7,374
$
753,180
Devon Energy Corp.
10,905
907,296
Rockwell Collins, Inc.
9,000
657,360
Murphy Oil Corp.†
12,220
854,056
General Dynamics Corp.
7,184
606,833
Smith International, Inc.†
10,365
740,061
Danaher Corp.
6,765
559,533
National-Oilwell Varco, Inc.*
5,110
738,395
American Standard Cos., Inc.
15,670
558,166
EOG Resources, Inc.†
10,200
737,766
CH Robinson Worldwide, Inc.†
10,160
551,586
Chesapeake Energy Corp.†
19,760
696,738
ITT Industries, Inc.
7,738
525,642
Anadarko Petroleum Corp.
12,390
665,963
United Technologies Corp.
6,080
489,318
Exxon Mobil Corp.
5,520
510,931
Pitney Bowes, Inc.†
8,490
385,616
Nabors Industries Ltd.*†
15,070
463,704
Cintas Corp.†
8,296
307,782
BJ Services Co.†
16,159
429,021
Total Industrials
5,395,016
Noble Corp.
5,620
275,661
MATERIALS 4.2%
Total Energy
9,412,309
Ball Corp.†
11,953
642,474
CONSUMER STAPLES 9.6%
Sigma-Aldrich Corp.
11,890
579,518
Pepsi Bottling Group, Inc.†
21,965
816,439
Ecolab, Inc.†
11,514
543,461
Avon Products, Inc.
16,880
633,507
Nucor Corp.†
8,628
513,107
Anheuser-Busch Cos., Inc.
11,680
583,883
Praxair, Inc.
4,922
412,267
Sysco Corp.
15,751
560,578
International Flavors &
WM Wrigley Jr Co.
8,417
540,624
Fragrances, Inc.
7,488
395,816
Colgate-Palmolive Co.
7,554
538,751
Newmont Mining Corp.
8,418
376,537
Walgreen Co.
11,264
532,111
Pactiv Corp.*
10,940
313,540
Kellogg Co.
9,365
524,440
Procter & Gamble Co.
7,345
516,647
Total Materials
3,776,720
UTILITIES 0.8%
Clorox Co.
7,888
481,089
PepsiCo, Inc.
6,428
470,915
Questar Corp.
8,208
431,166
Wal-Mart Stores, Inc.
10,556
460,769
AES Corp.*†
15,537
311,362
Estee Lauder Cos., Inc. —
Total Utilities
742,528
Class A†
9,946
422,307
Total Common Stocks
Brown-Forman Corp. — Class B
5,582
418,148
(Cost $80,055,947)
89,502,874
Campbell Soup Co.
10,890
402,930
AMOUNT
Hershey Co.†
7,890
366,175
FACE
McCormick & Co., Inc.
9,418
338,766
Total Consumer Staples
8,608,079
REPURCHASE AGREEMENTS 0.5%
Mizuho Financial Group, Inc.
FINANCIALS 7.4%
Repurchase Agreement (Note 5)
issued 09/28/07 at 3.96%
CME Group, Inc.
1,318
774,127
Federated Investors, Inc. —
Class B†
18,086
718,014
due 10/01/07
$
300,719
300,719
Progressive Corp.†
36,341
705,379
Lehman Brothers Holdings, Inc.
SLM Corp.
12,126
602,299
issued 09/28/07 at 3.90%
Leucadia National Corp.
12,400
597,928
due 10/01/07
168,035
168,035
Moody’s Corp.†
11,250
567,000
Morgan Stanley
Commerce Bancorp, Inc.†
14,444
560,138
issued 09/28/07 at 3.80%
Capital One Financial Corp.
8,039
534,031
due 10/01/07
35,379
35,379
Ambac Financial Group, Inc.†
6,912
434,834
Credit Suisse Group
American International Group,
issued 09/28/07 at 3.95%
Inc.
6,236
421,866
due 10/01/07
1,061
1,061
Countrywide Financial Corp.†
21,611
410,825
Total Repurchase Agreements
American Express Co.†
6,009
356,754
(Cost $505,194)
505,194
Total Financials
6,683,195
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
81
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
September 30, 2007
LARGE-CAP GROWTH FUND
FACE
MARKET
VALUE
AMOUNT
(NOTE 1)
SECURITIES LENDING COLLATERAL 17.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8)
$16,108,978
$
16,108,978
Total Securities Lending Collateral
(Cost $16,108,978)
16,108,978
Total Investments 117.9%
(Cost $96,670,119)
$ 106,117,046
Liabilities in Excess of
Other Assets – (17.9)%
$ (16,138,462)
Net Assets – 100.0%
$
89,978,584
† All or a portion of this security is on loan at September 30, 2007—See Note 8.
* Non-Income Producing Security.
82
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2007
U.S. GOVERNMENT MONEY MARKET FUND
MARKET
MARKET
AMOUNT
(NOTE 1)
AMOUNT
(NOTE 1)
FACE
VALUE
FACE
VALUE
FEDERAL AGENCY DISCOUNT NOTES 78.0%
REPURCHASE AGREEMENTS 12.9%
Fannie Mae*
Joint Repurchase Agreement (Note 5)
5.13% due 10/10/07
$
75,000,000
$
74,903,813
Lehman Brothers Holdings, Inc.
5.15% due 10/16/07
25,000,000
24,946,354
issued 09/28/07 at 3.90%
5.05% due 10/31/07
25,000,000
24,894,896
due 10/01/07
$
14,635,038
$
14,635,038
5.13% due 11/07/07
25,000,000
24,868,188
Mizuho Financial Group, Inc.
Farmer Mac*
issued 09/28/07 at 3.96%
5.11% due 10/09/07
25,000,000
24,971,611
due 10/01/07
26,191,205
26,191,205
4.72% due 10/17/07
25,000,000
24,947,556
Morgan Stanley
Federal Farm Credit Bank*
issued 09/28/07 at 3.80%
4.72% due 10/16/07
50,000,000
49,901,667
due 10/01/07
3,081,318
3,081,318
5.04% due 10/25/07
50,000,000
49,832,000
Credit Suisse Group
4.53% due 10/29/07
50,000,000
49,823,833
issued 09/28/07 at 3.95%
5.12% due 10/01/07
25,000,000
25,000,000
due 10/01/07
92,439
92,439
4.74% due 10/31/07
20,000,000
19,921,000
Individual Repurchase Agreement
Federal Home Loan Bank*
Lehman Brothers, Inc. at 3.90%
5.12% due 10/03/07
50,000,000
49,985,778
due 10/01/07 (Secured by a U.S.
5.12% due 10/24/07
50,000,000
49,836,444
Treasury Bill, maturing 11/23/07
4.90% due 10/26/07
50,000,000
49,829,861
as collateral, with a Market
4.74% due 11/14/07
50,000,000
49,710,333
Value of $121,378,639)
5.11% due 11/13/07
50,000,000
49,694,819
having a Maturity Value of
4.93% due 02/20/08
50,000,000
49,027,694
$123,690,719
118,998,223
118,998,223
5.11% due 11/07/07
25,000,000
24,868,701
Total Repurchase Agreements
Freddie Mac*
5.05% due 11/05/07†
50,000,000
49,754,514
(Cost $162,998,223)
162,998,223
SECURITIES LENDING COLLATERAL 8.0%
5.12% due 11/13/07
50,000,000
49,694,222
Investment in Securities Lending Short Term
5.02% due 11/30/07†
50,000,000
49,581,667
Investment Portfolio Held by
5.04% due 10/29/07
25,000,000
24,902,000
U.S. Bank (Note 8)
101,250,000
101,250,000
Total Securities Lending Collateral
5.12% due 12/03/07
25,000,000
24,776,000
4.74% due 12/10/07
25,000,000
24,769,583
5.11% due 12/10/07
25,000,000
24,751,597
(Cost $101,250,000)
101,250,000
4.59% due 03/10/08
25,000,000
24,486,813
Total Investments 106.8%
Total Federal Agency Discount Notes
(Cost $1,353,929,167)
$ 1,353,929,167
(Cost $989,680,944)
989,680,944
Liabilities in Excess of
FEDERAL AGENCY BONDS 7.9%
Other Assets – (6.8)%
$
(85,766,547)
Federal Home Loan Bank*
Net Assets – 100.0%
$ 1,268,162,620
5.25% due 11/01/07
50,000,000
50,000,000
5.00% due 09/26/08
25,000,000
25,000,000
5.26% due 11/08/07
25,000,000
25,000,000
Total Federal Agency Bonds
(Cost $100,000,000)
100,000,000
U.S. Government.
* The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the
† 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
|
83
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
S&P 500
Inverse
Fund
Nova
S&P 500
Strategy
OTC
Fund
Fund
Fund
ASSETS
Investment Securities* (Notes 1, 2 and 8)
$175,674,321
$11,226,571
$173,810,410
$
872,142,348
Segregated Cash with Broker
1,915,200
592,200
3,313,650
3,120,000
Repurchase Agreements* (Note 5)
47,216,502
16,365,854
132,904,881
104,331,254
Receivable for Futures Contracts Settlement (Note 1)
—
—
491,197
—
Receivable for Equity Index Swap Settlement (Note 1)
1,557,466
27,459
—
1,368,587
Receivable for Fund Shares Sold
521,162
625,042
209,997
Receivable for Securities Sold (Note 1)
—
—
—
5,034,122
—
Other Assets
—
Investment Income Receivable (Note 1)
206,649
16,469
43,501
55,456
—
—
—
Total Assets
227,091,300
28,853,595
310,773,636
986,051,767
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1)
—
337,410
4,732,779
—
Short Sales at Market Value** (Notes 1 and 2)
��
—
—
—
Payable upon Return of Securities Loaned (Note 8)
19,162,855
1,346,415
—
159,629,573
Payable for Futures Contracts Settlement (Note 1)
193,040
59,690
—
396,816
Payable for Fund Shares Redeemed
2,736,705
1,814,680
6,485,712
467,390
Payable for Securities Purchased (Note 1)
—
—
—
—
Transfer Agent and Administrative Fees Payable (Note 3)
36,964
4,900
60,173
144,282
Investment Advisory Fees Payable (Note 3)
110,891
14,701
216,624
432,846
Portfolio Accounting Fees Payable (Note 3)
Distribution and Service Fees Payable (Note 3)
19,983
2,452
12,475
8,641
Custody Fees Payable
4,436
588
7,221
17,314
14,786
1,960
22,675
42,279
Cash Due to Custodian Bank
—
7,763
—
—
Interest Payable
—
—
—
—
Other Liabilities
94,319
10,108
142,900
414,433
Dividends Payable
—
—
—
—
Total Liabilities
22,373,979
3,600,667
11,680,559
161,553,574
NET ASSETS
$204,717,321
$25,252,928
$299,093,077
$
824,498,193
NET ASSETS CONSIST OF
Paid-In Capital
$315,526,248
$23,967,957
$726,512,752
$1,199,294,932
Accumulated Net Realized Loss on Investments, Equity Index Swaps
Undistributed Net Investment Income (Loss)
3,943,650
198,413
13,183,077
(2,203,005)
Net Unrealized Appreciation (Depreciation) on Investments,
and Futures Contracts
(154,304,478)
(358,412)
(433,795,152)
(739,742,429)
Equity Index Swaps and Futures Contracts
39,551,901
1,444,970
(6,807,600)
367,148,695
NET ASSETS
$204,717,321
$25,252,928
$299,093,077
$
824,498,193
Investor Class
$114,093,855
N/A
$244,696,336
$
769,093,255
A-Class
13,186,199
$
4,088,336
9,803,093
8,276,449
Advisor Class
34,370,575
N/A
13,949,751
29,494,727
H-Class
N/A
19,113,641
N/A
N/A
C-Class
43,066,692
2,050,951
30,643,897
17,633,762
SHARES OUTSTANDING
Investor Class
3,404,173
N/A
6,778,033
55,255,836
A-Class
410,469
139,306
285,100
617,807
Advisor Class
1,079,681
N/A
407,588
2,222,871
C-Class
H-Class
N/A
651,582
N/A
N/A
1,381,496
70,588
910,029
1,360,847
NET ASSET VALUES
Investor Class
$33.52
N/A
$36.10
$13.92
A-Class
32.12
$29.35
34.38
13.40
Advisor Class
31.83
N/A
34.23
13.27
C-Class
A-Class Maximum Offering Price***
31.17
29.06
33.67
12.96
33.72
30.81
36.09
14.07
H-Class
N/A
29.33
N/A
N/A
$8,393,940, $67,659,029, $62,614,127, and $578,202,391, respectively.
* The cost of investments is $186,283,766, $26,460,392, $306,726,506, $613,661,031, $95,853,364, $61,323,060, $13,438,350, $71,005,432,
*** Net asset value adjusted for the maximum sales charge of 4.75% of offering price.
** The proceeds from short sales are $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0 and $74,142,925, respectively.
84
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
September 30, 2007
OTC
Inverse
Mid-Cap
Mid-Cap
Russell 2000®
Russell 2000®
Long Bond
Government
Inverse
Inverse
Government
Inverse
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Strategy Fund
Strategy
1.5x Strategy
Strategy
1.5x Strategy
Russell 2000®
Strategy
1.2x Strategy
Long Bond
95,849,959
$
—
$37,745,914
$
—
$
52,454,860
$
4,709,884
$
—
$ 62,250,513
$
—
233,550
1,523,200
9,600
431,800
61,200
952,000
276,000
7,138,460
26,145,713
13,438,350
23,579,927
3,981,023
67,659,029
2,107,114
578,149,043
43,098
—
—
—
—
274,920
—
55,614
—
528,667
—
180,414
—
—
—
—
749,500
85,223
660,064
9,254
33,834
1,273,561
2,188,741
2,641,286
—
253,272
—
—
—
—
303,135
—
—
—
—
17,952
1,683
—
—
—
31,361
26,648
4,402
46,725
4,799
22,162
1,146,099
189,114
96,907,468
66,308,637
14,112,416
76,720,932
8,792,423
70,181,672
68,271,602
588,173,517
—
5,207,972
—
—
—
—
—
—
75,836,026
—
165,356
2,301
129,189
3,718
—
—
—
—
649,099
1,371,743
90,781
1,247,263
—
—
—
133,290
—
—
—
—
—
—
—
6,328,730
—
12,878,495
1,072,191
—
—
—
64,860
34,797
8,856
1,738,213
37,760
3,846
48,065
1,282,934
297,080
1,988,232
950,879
478,500
2,434,121
7,593,972
18,017
9,666
2,460
10,489
1,282
13,351
10,769
89,239
26,922
321,261
7,207
3,866
984
4,196
513
5,341
5,384
31,327
3,941
7,642
1,392
9,068
762
7,239
4,329
55,894
—
—
—
—
—
—
—
1,395,382
2,162
1,160
295
1,259
154
1,602
1,694
10,709
—
—
—
—
—
—
13,050
—
—
—
—
404
9,144
—
—
—
65,920
27,854
6,955
33,285
4,222
36,721
37,336
281,406
7,108,292
7,995,295
969,422
16,464,120
2,137,492
1,838,082
2,533,605
85,615,216
$
89,799,176
$58,313,342
$13,142,994
$
60,256,812
$
6,654,931
$
68,343,590
$ 65,737,997
$502,558,301
$280,667,915
3,142,611
202,707
287,814
$54,666,224
$19,965,230
$
303,278
136,255
1,679,005
183,622
13,793,176
56,829,690
$
6,391,645
$103,539,695
$ 75,220,144
$713,337,012
(191,874,690)
(733,154)
(6,651,815)
(2,437,631)
(186,967)
(37,194,929)
(11,455,916)
(222,110,278)
(2,136,660)
4,177,565
(458,235)
5,561,475
313,998
319,819
1,790,147
(2,461,609)
$
89,799,176
$58,313,342
$13,142,994
$
60,256,812
$
6,654,931
$
68,343,590
$ 65,737,997
$502,558,301
2,898,587
N/A
$
73,633,195
N/A
N/A
N/A
N/A
N/A
$ 38,117,430
$284,579,257
2,149,290
$
2,412,785
$
699,227
$
6,428,778
$
550,866
$
7,999,167
11,948,916
33,276,177
N/A
N/A
N/A
N/A
7,566,150
22,914,372
N/A
40,874,811
11,180,640
34,326,689
5,087,399
53,015,218
N/A
N/A
11,118,104
15,025,746
1,263,127
19,501,345
1,016,666
7,329,205
8,105,501
161,788,495
156,406
N/A
N/A
N/A
N/A
N/A
719,902
1,197,912
3,891,723
N/A
N/A
N/A
N/A
N/A
3,611,868
14,564,049
631,569
371,562
39,151
553,534
36,920
213,191
768,031
8,826,846
115,035
56,962
21,033
173,379
19,834
226,371
1,130,320
1,724,545
N/A
964,573
336,311
926,066
183,103
1,499,432
N/A
N/A
$18.92
N/A
N/A
N/A
18.53
N/A
N/A
N/A
N/A
N/A
10.51
19.13
N/A
N/A
$10.55
$19.54
19.61
44.47
34.90
38.93
29.15
37.10
11.10
20.26
18.68
$42.36
$33.24
$37.08
$27.77
$35.34
10.57
19.30
N/A
42.38
33.24
37.07
27.78
35.36
N/A
N/A
17.60
40.44
32.26
35.23
27.54
34.38
10.55
18.33
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
85
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (concluded)
High Yield
High Yield
Europe
Inverse
Strategy
Strategy
1.25x Strategy
1.25x Strategy
Japan
Fund
Fund
Fund
Fund
ASSETS
Investment Securities* (Notes 1, 2 and 8)
Repurchase Agreements* (Note 5)
42,320,857
6,012,136
47,621,477
34,983,552
$
—
$
—
$
88,218,116
$
—
Segregated Cash with Broker
237,250
37,050
Cash
—
66,944
5,801
230,739
—
230,000
Receivable for Equity Index/Credit Default Swap Settlement (Note 1)
Receivable for Futures Contracts Settlement (Note 1)
—
—
7,060
—
323,478
230,158
2,326,658
3,062,978
Receivable for Securities Sold (Note 1)
—
—
Receivable for Fund Shares Sold
—
—
Investment Income Receivable (Note 1)
13,856
1,968
135,845
11,439
146,379
192,500
3,170,182
846,036
Total Assets
43,041,820
6,540,756
141,715,878
39,134,005
LIABILITIES
Payable for Futures Contracts Settlement (Note 1)
43,566
3,250
12,406
24,225
Payable for Equity Index/Credit Default Swap Settlement (Note 1)
1,202,659
5,462
1,312,137
—
Payable for Securities Purchased (Note 1)
—
—
—
—
Payable upon Return of Securities Loaned (Note 8)
—
—
13,692,280
—
Investment Advisory Fees Payable (Note 3)
13,358
6,831
68,011
24,658
Payable for Fund Shares Redeemed
750
116,372
1,142,659
569,418
Distribution and Service Fees Payable (Note 3)
2,939
859
11,812
4,235
Transfer Agent and Administrative Fees Payable (Note 3)
4,453
2,277
18,892
6,849
Custody Fees Payable
534
273
2,267
822
Portfolio Accounting Fees Payable (Note 3)
1,781
911
7,557
2,740
Dividends Payable
Cash Due to Custodian Bank
—
—
—
—
—
—
Other Liabilities
4,322
6,163
49,691
23,531
—
—
Total Liabilities
1,274,362
142,398
16,317,712
656,478
NET ASSETS
$
41,767,458
$
6,398,358
$125,398,166
$
38,477,527
NET ASSETS CONSIST OF
Undistributed Net Investment Income (Loss)
Paid-In Capital
$
305,409
(8,948)
2,189,795
3,300,468
41,497,827
$
6,729,736
$110,590,594
$
47,043,058
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index/Credit Default Swaps and Futures Contracts
(343,190)
(451,967)
Net Unrealized Appreciation on Investments,
142,124
(14,673,601)
Equity Index/Credit Default Swaps and Futures Contracts
307,412
129,537
12,475,653
2,807,602
NET ASSETS
$
41,767,458
$
6,398,358
$125,398,166
$
38,477,527
Advisor Class
Investor Class
N/A
N/A
N/A
N/A
A-Class
$
7,260,178
$
2,029,282
$ 13,876,156
$
14,204,837
N/A
N/A
N/A
N/A
H-Class
C-Class
33,489,583
2,848,092
97,336,330
18,434,445
1,017,697
1,520,984
14,185,680
5,838,245
SHARES OUTSTANDING
Investor Class
N/A
Advisor Class
N/A
N/A
N/A
A-Class
286,372
40,440
N/A
N/A
N/A
N/A
C-Class
40,309
30,411
544,371
271,380
505,352
619,166
NET ASSET VALUES
H-Class
1,321,559
56,759
3,543,984
802,542
Investor Class
Advisor Class
N/A
N/A
N/A
N/A
A-Class
$25.35
N/A
N/A
$50.18
$27.46
$22.94
N/A
N/A
C-Class
25.25
50.01
26.06
21.51
A-Class Maximum Offering Price**
26.61
52.68
28.83
24.08
H-Class
25.34
50.18
27.47
22.97
* The cost of investments is $42,320,857, $6,012,136, $126,389,694, $34,983,552, $9,113,053, $19,332,697, $25,600,602, $23,049,454,
** Net asset value adjusted for the maximum sales charge of 4.75% of offering price.
$20,575,067, $96,670,119, and $1,353,929,167, respectively.
86
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
September 30, 2007
Small-Cap
Mid-Cap
Large-Cap
Small-Cap
Mid-Cap
Large-Cap
Government
U.S.
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Value
Value
Value
Growth
Growth
Growth
Money Market
$
10,415,925
$22,622,932
$30,962,026
$
26,170,676
$24,439,214
$105,611,852
$1,190,930,944
—
—
—
—
—
—
—
40,248
—
149,589
25,159
106,571
505,194
162,998,223
—
—
—
1,707
—
—
—
—
—
—
—
—
—
83,667
62,373
667,393
—
3,817,038
1,511,421
—
—
—
—
—
—
—
—
—
12,339
17,909
62,249
3,533
14,944
31,883
1,661,464
12,619
65,538
27,844
42,884
65,514
1,178,207
108,778,330
10,543,504
23,373,772
31,203,415
30,059,290
26,137,664
107,327,136
1,464,452,628
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
67,660
—
328,024
—
596,708
—
2,249,027
4,110,833
4,312,404
5,899,225
4,808,236
16,108,978
101,250,000
4,711
9,846
15,906
10,708
11,723
41,818
474,748
104,661
353,936
215,427
3,482,247
1,622,321
537,891
93,518,707
1,570
3,282
5,302
3,569
3,908
13,939
189,899
628
1,313
2,121
1,428
1,563
5,576
53,451
880
2,940
3,271
3,855
2,973
9,438
60,230
—
286,766
—
—
—
—
—
206
405
839
672
469
2,011
28,485
7,920
18,130
52,420
11,710
13,839
32,193
625,606
—
—
—
—
—
—
88,882
2,369,603
4,855,111
4,607,690
9,741,438
6,465,032
17,348,552
196,290,008
$
8,173,901
$18,518,661
$26,595,725
$
20,317,852
$19,672,632
$
89,978,584
$1,268,162,620
$
30,665
465,640
1,191,815
(147,022)
(163,255)
(239,925)
(20,990)
11,381,356
$17,984,968
$
4,291,343
$
21,243,445
$18,829,058
$
88,552,089
$1,268,656,171
(4,581,240)
(3,222,182)
15,601,554
(3,924,952)
(2,963,889)
(7,780,507)
(472,561)
1,343,120
3,290,235
5,511,013
3,146,381
3,970,718
9,446,927
—
$
8,173,901
$18,518,661
$26,595,725
$
20,317,852
$19,672,632
$
89,978,584
$1,268,162,620
N/A
N/A
N/A
N/A
N/A
N/A
$
951,720,901
$
2,695,356
$
3,547,689
$
5,025,581
$
3,161,508
$
4,564,203
$
3,724,482
18,388,847
N/A
N/A
N/A
N/A
N/A
N/A
207,922,474
4,457,724
7,964,586
17,384,050
8,397,078
9,608,477
72,048,627
N/A
1,020,821
7,006,386
4,186,094
8,759,266
5,499,952
14,205,475
90,130,398
N/A
N/A
N/A
N/A
N/A
N/A
208,179,907
N/A
N/A
N/A
N/A
N/A
N/A
952,153,316
33,191
204,612
130,832
264,372
175,157
509,269
90,130,627
85,176
100,888
152,856
93,142
141,530
130,057
18,388,940
141,005
226,477
528,806
247,284
297,629
2,516,625
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1.00
N/A
N/A
N/A
N/A
$1.00
$31.64
$35.16
$32.88
$33.94
$32.25
$28.64
1.00
30.76
34.24
32.00
33.13
31.40
27.89
1.00
33.22
36.91
34.52
35.63
33.86
30.07
1.00
31.61
35.17
32.87
33.96
32.28
28.63
N/A
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
87
STATEMENTS OF OPERATIONS (Unaudited)
S&P 500
Inverse
Fund
Fund
Fund
Fund
Nova
S&P 500
Strategy
OTC
INVESTMENT INCOME
Interest (Note 1)
$
875,714
$
275,682
$
8,588,378
$
1,338,586
Income from Securities Lending, net (Note 8)
7,809
299
—
84,435
Dividends, Net of Foreign Tax Withheld* (Note 1)
1,786,401
87,540
—
1,179,867
Total Income
2,669,924
363,521
8,588,378
2,602,888
EXPENSES
Investment Advisory Fees (Note 3)
779,571
76,793
1,475,023
2,699,291
Transfer Agent and Administrative Fees (Note 3)
259,857
25,598
409,729
899,764
Distribution & Service Fees (Note 3):
Advisor Class
88,654
—
42,681
31,890
A-Class
18,953
4,113
13,984
7,632
C-Class
215,107
12,458
178,842
65,429
H-Class
—
18,370
—
—
Portfolio Accounting Fees (Note 3)
103,943
10,239
154,083
272,892
Registration Fees
55,712
2,877
57,966
249,409
Interest Expense
—
—
—
—
Trustees’ Fees**
9,749
749
11,284
28,590
Custody Fees
26,987
2,690
42,666
93,981
Miscellaneous
85,255
11,221
168,395
457,015
Total Expenses
1,643,788
165,108
2,554,653
4,805,893
Net Investment Income (Loss)
1,026,136
198,413
6,033,725
(2,203,005)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities
6,028,001
38,627
—
33,103,393
Equity Index Swaps
4,678,678
(318,849)
(18,332,367)
1,461,504
Futures Contracts
1,799,146
(55,465)
(7,083,687)
1,110,018
Securities Sold Short
—
—
—
—
Total Net Realized Gain (Loss)
12,505,825
(335,687)
(25,416,054)
35,674,915
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities
713,144
572,645
(11,215)
81,128,595
Equity Index Swaps
1,026,423
(6,322)
2,228,675
2,340,663
Futures Contracts
796,185
318,517
(1,256,103)
2,014,207
Securities Sold Short
—
—
—
—
Net Change in Unrealized Appreciation (Depreciation)
2,535,752
884,840
961,357
85,483,465
Net Gain (Loss) on Investments
15,041,577
549,153
(24,454,697)
121,158,380
Net Increase (Decrease) in Net Assets from Operations
$16,067,713
$
747,566
$(18,420,972)
$118,955,375
** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
* Foreign tax withheld of $0, $0, $0, $13,676, $0, $0, $0, $136, $14, $0, $0, and $0, respectively.
88
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Period Ended September 30, 2007
Inverse
Inverse
Inverse
Government
Inverse
Strategy
1.5x Strategy
Strategy
1.5x Strategy
Russell 2000®
Strategy
1.2x Strategy
Long Bond
OTC
Mid-Cap
Mid-Cap
Russell 2000®
Russell 2000®
Long Bond
Government
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Strategy Fund
$
2,959,136
$
581,715
$
338,532
$
531,466
$ 154,866
$
1,735,291
$
1,701,955
$19,813,933
—
4,708
—
13,623
955
—
—
—
—
210,426
—
291,530
29,760
—
—
—
2,959,136
796,849
338,532
836,619
185,581
1,735,291
1,701,955
19,813,933
506,428
284,220
60,105
304,742
39,786
312,400
172,865
2,555,759
140,674
78,950
16,696
84,650
13,262
86,778
69,146
709,933
9,813
—
—
—
—
—
22,862
79,457
3,318
4,275
733
8,058
624
10,992
14,049
64,071
71,569
88,623
6,521
97,229
3,738
35,428
54,278
935,457
—
52,520
14,332
52,286
11,704
66,929
—
—
56,270
31,580
6,678
33,860
5,305
34,711
34,573
234,986
50,651
11,105
3,774
17,272
1,894
15,346
19,063
138,613
—
—
—
—
—
—
—
5,616,364
5,756
2,912
758
3,822
471
3,424
4,019
30,427
14,567
8,182
1,750
8,727
1,376
9,062
9,131
73,511
61,296
31,775
5,152
28,004
5,327
31,562
27,049
242,722
920,342
594,142
116,499
638,650
83,487
606,632
427,035
10,681,300
2,038,794
202,707
222,033
197,969
102,094
1,128,659
1,274,920
9,132,633
(2,810)
1,200,130
—
3,062,734
164,936
—
(3,525,035)
(67,436)
(16,351,217)
(660,764)
(36,840)
(1,667,481)
(70,457)
250,682
—
—
(1,587,737)
290,021
(425,662)
(459,884)
115,960
(1,727,444)
(467,406)
(7,551,415)
—
—
—
—
—
—
—
15,678,623
(17,941,764)
829,387
(462,502)
935,369
210,439
(1,476,762)
(3,992,441)
8,059,772
(595)
(1,850,866)
—
(3,316,770)
(89,972)
—
2,434,916
(31,846)
163,601
532,547
(528,229)
1,175,837
(9,410)
(1,233,464)
—
—
160,488
575,390
51,137
(138,263)
4,569
1,248,633
103,300
(1,960,221)
—
—
—
—
—
—
—
(5,937,815)
323,494
(742,929)
(477,092)
(2,279,196)
(94,813)
15,169
2,538,216
(7,929,882)
(17,618,270)
86,458
(939,594)
(1,343,827)
115,626
(1,461,593)
(1,454,225)
129,890
$(15,579,476)
$
289,165
$
(717,561)
$
(1,145,858)
$ 217,720
$
(332,934)
$
(179,305)
$ 9,262,523
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
89
STATEMENTS OF OPERATIONS (Unaudited) (concluded)
High Yield
Inverse
Strategy
Strategy
1.25x Strategy
1.25x Strategy
High Yield
Europe
Japan
Fund***
Fund***
Fund
Fund
INVESTMENT INCOME
Interest (Note 1)
$
250,509
$
297,387
$
1,422,777
$
1,299,504
Income from Securities Lending, net (Note 8)
—
—
7,576
—
Dividends, Net of Foreign Tax Withheld* (Note 1)
—
—
954,823
—
Swap Income (Note 1)
128,855
—
—
—
Total Income
379,364
297,387
2,385,176
1,299,504
EXPENSES
Investment Advisory Fees (Note 3)
35,962
46,706
481,381
224,357
Transfer Agent and Administrative Fees (Note 3)
11,988
15,567
133,717
62,322
Distribution & Service Fees (Note 3):
Advisor Class
—
—
—
—
A-Class
524
2,552
16,844
15,701
C-Class
1,311
4,274
62,094
39,478
H-Class
11,136
11,947
101,349
36,751
Portfolio Accounting Fees (Note 3)
4,795
6,227
53,487
24,929
Swap Expense
—
208,409
—
—
Trustees’ Fees**
175
271
4,697
2,728
Custody Fees
1,286
1,624
13,889
6,391
Miscellaneous
6,778
8,758
72,859
33,417
Total Expenses
73,955
940,317
446,074
Net Investment Income (Loss)
305,409
(8,948)
1,444,859
853,430
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities
11,915
—
(1,014,839)
—
Equity Index/Credit Default Swaps
(314,119)
112,527
2,879,528
(6,859,031)
Futures Contracts
(40,986)
(564,494)
—
(945,004)
Total Net Realized Gain (Loss)
(343,190)
(451,967)
1,864,689
(7,804,035)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities
—
—
4,155,176
—
Equity Index/Credit Default Swaps
218,313
146,607
786,361
4,230,932
Futures Contracts
89,099
(17,070)
(5,345)
12,545
Net Change in Unrealized Appreciation (Depreciation)
307,412
129,537
4,936,192
4,243,477
Net Gain (Loss) on Investments
(35,778)
(322,430)
6,800,881
(3,560,558)
Net Increase (Decrease) in Net Assets from Operations
$
269,631
$ (331,378)
$
8,245,740
$ (2,707,128)
** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
* Foreign tax withheld of $0, $0, $133,723, $0, $155, $0, $0, $0, $0, $0, and $0, respectively.
*** Since the commencement of operations: April 16, 2007.
90
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Period Ended September 30, 2007
U.S.
Value
Value
Value
Growth
Growth
Growth
Money Market
Small-Cap
Mid-Cap
Large-Cap
Small-Cap
Mid-Cap
Large-Cap
Government
Fund
Fund
Fund
Fund
Fund
Fund
Fund
$
1,841
$
5,801
$
16,667
$
3,513
$
4,343
$
11,271
$32,761,976
12,507
10,050
16,759
26,231
6,987
4,924
22,562
132,795
560,983
1,557,096
40,873
73,201
309,562
—
—
—
—
—
—
—
—
147,143
576,834
1,590,522
70,617
84,531
325,757
32,784,538
54,687
178,606
500,725
95,884
114,728
262,850
3,157,452
18,229
59,535
166,908
31,961
38,243
87,617
1,262,981
—
—
—
—
—
—
419,014
5,102
5,688
7,462
3,611
5,318
3,697
24,446
7,200
32,265
45,641
28,947
19,967
40,831
593,666
11,327
45,781
148,037
21,114
27,933
73,712
—
7,292
23,814
66,763
12,784
15,297
35,047
357,735
—
—
—
—
—
—
—
1,106
2,489
8,373
1,372
1,472
61,123
2,068
7,924
18,885
4,800
4,119
11,111
164,493
9,467
32,042
88,433
17,166
20,709
48,248
854,538
116,478
388,144
1,051,227
217,639
247,786
565,682
6,895,448
30,665
188,690
539,295
(147,022)
(163,255)
(239,925)
25,889,090
265,170
1,810,076
23,681,837
920,331
(1,477,308)
(4,180,418)
(1,201)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
265,170
1,810,076
23,681,837
920,331
(1,477,308)
(4,180,418)
(1,201)
(1,776,472)
(1,768,861)
(20,183,059)
693,371
1,605,167
5,344,471
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(1,776,472)
(1,768,861)
(20,183,059)
693,371
1,605,167
5,344,471
—
(1,511,302)
41,215
3,498,778
1,613,702
127,859
1,164,053
(1,201)
$(1,480,637)
$
229,905
$
4,038,073
$ 1,466,680
$
(35,396)
$
924,128
$25,887,889
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
91
STATEMENTS OF CHANGES IN NET ASSETS
Nova Fund
S&P 500 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
$
12,505,825
1,026,136
$
29,953,138
(1,815,413)
$
(335,687)
198,413
$
788,794
151,643
Net Change in Unrealized Appreciation (Depreciation) on Investments
2,535,752
(3,327,070)
884,840
560,130
Net Increase (Decrease) in Net Assets from Operations
16,067,713
24,810,655
747,566
1,500,567
Distributions to Shareholders from: (Note 1)
Net Investment Income
Investor Class
Advisor Class
—
—
(4,140,935)
(9,646,201)
—
—
—
—
C-Class
A-Class
—
—
(3,094,762)
(896,227)
—
—
(5,936)
H-Class
—
—
—
(72,955)
(3,109)
Realized Gain on Investments
C-Class
A-Class
—
—
—
—
—
—
(22,805)
(11,942)
H-Class
—
—
—
(280,258)
Total Distributions to Shareholders
—
(17,778,125)
—
(397,005)
SHARE TRANSACTIONS
Proceeds from Shares Purchased
Investor Class
166,758,568
353,358,723
—
—
Advisor Class
A-Class
42,063,512
6,318,216
189,464,156
18,039,665
—
—
C-Class
20,076,490
59,036,397
20,528,790
11,661,411
25,274,285
4,535,678
H-Class
—
—
69,931,613
92,864,595
Value of Shares Purchased through Dividend Reinvestment
Investor Class
Advisor Class
—
—
4,100,656
9,235,931
—
—
—
—
C-Class
A-Class
—
727,014
—
26,011
H-Class
—
2,866,432
—
—
—
—
352,835
15,050
Cost of Shares Redeemed
Investor Class
(174,379,284)
(391,470,378)
—
—
Advisor Class
A-Class
(47,343,848)
(9,782,806)
(199,644,131)
(33,702,444)
—
—
C-Class
(23,207,429)
(71,132,598)
(20,554,790)
(9,845,179)
(23,636,531)
(2,574,039)
H-Class
—
—
(57,624,574)
(87,553,355)
Net Increase (Decrease) in Net Assets From Share Transactions
(19,496,581)
(59,120,577)
14,097,271
9,304,529
Net Increase (Decrease) in Net Assets
(3,428,868)
(52,088,047)
14,844,837
10,408,091
NET ASSETS—BEGINNING OF PERIOD
208,146,189
260,234,236
10,408,091
—
NET ASSETS—END OF PERIOD
$ 204,717,321
$ 208,146,189
$ 25,252,928
$ 10,408,091
Undistributed Net Investment Income (Loss)—End of Period
$
3,943,650
$
2,917,514
$
198,413
$
—
* Since the commencement of operations: May 31, 2006.
† Unaudited
92
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Inverse
Inverse
Mid-Cap
S&P 500 Strategy Fund
OTC Fund
OTC Strategy Fund
1.5x Strategy Fund
Period
Year
Period
Year
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Ended
2007†
2007
2007†
2007
2007†
2007
2007†
2007
$
6,033,725
$
(2,749,491)
$
(2,203,005)
$
(3,961,757)
$
2,038,794
$
(1,125,772)
$
202,707
$
(68,693)
(25,416,054)
961,357
(20,879,523)
(2,629,540)
85,483,465
35,674,915
103,280,752
(76,217,103)
(17,941,764)
323,494
(1,889,091)
3,793,109
(742,929)
829,387
(4,004,265)
1,638,239
(18,420,972)
(26,258,554)
118,955,375
23,101,892
(15,579,476)
778,246
289,165
(2,434,719)
—
—
(7,828,638)
(674,044)
—
—
—
—
—
—
(2,663,111)
(133,537)
—
—
—
—
—
—
(1,381,899)
(377,469)
—
—
—
—
—
(76,936)
—
—
—
—
—
—
—
—
(418,719)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(154,068)
(714,004)
—
—
—
—
—
—
—
(1,148,745)
—
(10,262,050)
—
—
—
(3,292,303)
—
(2,016,817)
235,805,765
25,470,658
819,691,781
385,360,216
678,943,078
191,265,453
604,220,439
—
—
9,733,069
122,457,302
28,384,813
65,836,245
6,785,219
211,259,433
6,946,275
7,395,739
66,839,327
—
—
27,123,131
70,006,059
37,921,557
60,118,990
15,013,495
1,690,685
20,377,943
54,482,383
14,808,150
4,247,435
52,096,791
7,282,131
—
—
—
—
—
—
221,363,625
405,725,422
—
—
6,946,836
—
613,474
—
—
—
—
2,301,578
—
—
—
353,891
—
—
—
—
118,737
69,564
—
—
134,035
—
—
—
1,231,276
—
—
—
—
—
391,313
—
649,666
—
—
—
—
1,071,738
(269,273,701)
(835,174,645)
(365,829,705)
(959,081,671)
(209,758,349)
(645,462,888)
—
—
(33,165,064)
(10,867,780)
(142,963,079)
(24,729,395)
(47,960,001)
(3,174,149)
(230,490,040)
(5,732,055)
(15,272,054)
(3,219,058)
(17,695,782)
(65,312,711)
(4,672,674)
—
(9,517,551)
—
(37,154,456)
(63,649,348)
(32,207,750)
(68,580,358)
(19,708,994)
(49,610,769)
(17,197,394)
(64,225,572)
—
—
—
—
—
—
(205,360,749)
(428,596,356)
(52,328,378)
(16,831,035)
46,731,632
(306,616,348)
(32,593,083)
(29,280,866)
13,188,393
(35,379,696)
369,842,427
(70,749,350)
(53,351,639)
165,687,007
(283,514,456)
(48,172,559)
(31,794,923)
13,477,558
(39,831,232)
423,194,066
658,811,186
942,325,642
137,971,735
169,766,658
44,835,784
84,667,016
$ 299,093,077
$369,842,427
$ 824,498,193
$ 658,811,186
$
89,799,176
$
137,971,735
$
58,313,342
$
44,835,784
$
13,183,077
$
7,149,352
$
(2,203,005)
$
—
$
3,142,611
$
1,103,817
$
202,707
$
—
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
93
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Inverse
Russell 2000®
Mid-Cap Strategy Fund
1.5x Strategy Fund
Ended
Ended
Ended
Ended
Period
Year
Period
Year
2007†
2007
2007†
2007
September 30,
March 31,
September 30,
March 31,
FROM OPERATIONS
Net Investment Income (Loss)
$
222,033
$
1,043,112
$
197,969
$
105,309
Net Realized Gain (Loss) on Investments
Net Change in Unrealized Appreciation (Depreciation) on Investments
(477,092)
(462,502)
(3,157,518)
291,077
(2,279,196)
935,369
8,300,281
(21,838,197)
Net Increase (Decrease) in Net Assets from Operations
(717,561)
(1,823,329)
(1,145,858)
(13,432,607)
Distributions to Shareholders from: (Note 1)
Net Investment Income
Investor Class
Advisor Class
—
—
—
—
—
—
—
—
C-Class
A-Class
—
—
(25,202)
(80,807)
—
—
H-Class
—
(993,991)
—
—
—
Realized Gain on Investments
—
C-Class
A-Class
—
—
—
—
—
—
(1,078,955)
(235,394)
H-Class
—
—
—
(3,210,912)
Total Distributions to Shareholders
—
(1,100,000)
—
(4,525,261)
SHARE TRANSACTIONS
Proceeds from Shares Purchased
Investor Class
—
—
—
—
Advisor Class
A-Class
—
398,559
3,499,427
—
—
—
C-Class
14,873,946
24,219,225
14,104,438
3,182,275
45,791,773
6,455,879
Value of Shares Purchased through Dividend Reinvestment
H-Class
26,164,039
222,464,525
161,804,005
859,988,784
Investor Class
—
—
—
—
Advisor Class
A-Class
—
—
17,836
—
—
—
206,074
—
C-Class
H-Class
—
—
704,812
74,887
—
—
1,020,205
3,005,716
Cost of Shares Redeemed
Investor Class
Advisor Class
—
—
—
—
—
—
—
—
A-Class
C-Class
(14,449,416)
(171,091)
(24,403,805)
(3,141,890)
(2,751,738)
(14,497,610)
(57,687,966)
(7,097,848)
H-Class
(29,764,892)
(223,484,913)
(169,217,705)
(974,388,461)
Net Increase (Decrease) in Net Assets From Share Transactions
(2,948,855)
(49,896)
(7,376,335)
(122,705,844)
Net Increase (Decrease) in Net Assets
(3,666,416)
(2,973,225)
(8,522,193)
(140,663,712)
NET ASSETS—BEGINNING OF PERIOD
16,809,410
19,782,635
68,779,005
209,442,717
NET ASSETS—END OF PERIOD
$ 13,142,994
$
16,809,410
$
60,256,812
$
68,779,005
Undistributed Net Investment Income—End of Period
$
287,814
$
65,781
$
303,278
$
105,309
* Since the commencement of operations: May 31, 2006.
† Unaudited
94
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Russell 2000®
Inverse
Government Long Bond
Fund
Russell 2000® Strategy Fund
1.2x Strategy Fund
Long Bond Strategy Fund
Inverse Government
Period
Year
Period
Year
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Ended
2007†
2007*
2007†
2007
2007†
2007
2007†
2007
$
102,094
$
113,596
$
1,128,659
$
4,030,926
$
1,274,920
$
4,146,710
$
9,132,633
$
(8,586,800)
210,439
(94,813)
(397,406)
408,811
(1,476,762)
15,169
(17,847,780)
2,362,677
(3,992,441)
2,538,216
7,036,691
732,771
(7,929,882)
8,059,772
12,883,017
10,704,439
217,720
125,001
(332,934)
(11,454,177)
(179,305)
11,916,172
9,262,523
15,000,656
—
—
—
—
(748,915)
(2,464,752)
—
(12,001,401)
—
—
(1,924)
—
—
—
—
(156,867)
(1,027,406)
—
(1,514,111)
—
(27,916)
—
(576,358)
(729,664)
(160,942)
(208,196)
(347,575)
(306,974)
—
—
(8,761,747)
(2,486,015)
—
(55,160)
—
(2,593,978)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(85,000)
—
(3,900,000)
(1,274,920)
(4,146,707)
—
(24,763,274)
—
—
—
—
—
408,199,746
727,162,729
475,630,777
690,551,081
3,508,392
618,360
—
9,391,769
—
35,929,995
—
31,205,545
7,035,220
1,232,236,117
21,897,689
27,470,293
10,656,945
117,254,275
31,983,116
79,772,728
3,215,335
7,783,139
14,195,002
45,882,074
103,031,707
144,629,874
703,818,678
38,692,655
53,529,026
23,093,580
49,237,154
—
—
—
—
—
—
—
—
—
—
—
—
670,443
2,303,877
—
9,339,323
—
1,922
—
368,469
154,965
150,803
1,026,854
147,191
—
—
1,263,583
2,031,753
—
—
27,588
54,704
—
—
2,142,780
345,970
134,982
249,842
—
—
—
—
7,681,687
—
—
—
—
—
—
—
—
—
(410,653,041)
(34,339,516)
(1,247,458,155)
(725,057,789)
(508,768,532)
(48,879,688)
(1,150,166,270)
(174,285,131)
(3,283,289)
(2,914,084)
(7,191,752)
(352,383)
(11,162,303)
(24,740,311)
(6,648,405)
(12,603,106)
(49,552,448)
(87,609,470)
(15,206,260)
(38,951,613)
(46,142,115)
(45,691,672)
(76,036,224)
(374,512,946)
(88,123,797)
(89,751,360)
(140,250,094)
(698,794,125)
—
—
—
—
(7,824,715)
14,221,925
1,597,988
26,001,917
(11,538,718)
7,742,603
(146,385,297)
(877,231,845)
14,261,926
(7,606,995)
14,261,926
—
67,078,536
1,265,054
56,430,796
10,647,740
(12,992,943)
78,730,940
63,218,872
15,512,068
(137,122,774)
639,681,075
(886,994,463)
1,526,675,538
$
6,654,931
$ 14,261,926
$
68,343,590
$
67,078,536
$
65,737,997
$
78,730,940
$ 502,558,301
$
639,681,075
$
136,255
$
34,161
$
1,679,005
$
550,346
$
183,622
$
183,622
$
13,793,176
$
4,660,543
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
95
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Strategy Fund
Strategy Fund
1.25x Strategy Fund
High Yield
Inverse High Yield
Europe
Ended
Ended
Ended
Ended
Period
Period
Period
Year
September 30,
2007*†
2007*†
2007†
2007
September 30,
September 30,
March 31,
FROM OPERATIONS
Net Investment Income (Loss)
Net Realized Gain (Loss) on Investments
$
(343,190)
305,409
$
(451,967)
(8,948)
$
1,864,689
1,444,859
$
5,781,760
2,243,859
Net Change in Unrealized Appreciation (Depreciation) on Investments
307,412
129,537
4,936,192
2,810,770
Net Increase (Decrease) in Net Assets from Operations
269,631
(331,378)
8,245,740
10,836,389
Distributions to Shareholders from: (Note 1)
Net Investment Income
C-Class
A-Class
—
—
—
—
—
(49,544)
H-Class
—
—
—
(58,417)
—
(534,636)
Realized Gain on Investments
A-Class
C-Class
—
—
—
—
—
—
—
—
H-Class
—
—
—
—
Total Distributions to Shareholders
—
—
—
(642,597)
SHARE TRANSACTIONS
Proceeds from Shares Purchased
A-Class
C-Class
7,265,610
1,264,195
12,697,139
2,093,283
85,259,145
8,297,449
100,707,079
16,977,404
Value of Shares Purchased through Dividend Reinvestment
H-Class
59,525,218
28,933,200
260,315,980
666,454,854
C-Class
A-Class
—
—
—
—
—
—
48,884
54,272
Cost of Shares Redeemed
H-Class
—
—
—
524,983
A-Class
C-Class
(261,095)
(33,783)
(10,256,768)
(6,823,857)
(8,497,935)
H-Class
(26,262,318)
(26,235,317)
(501,801)
(226,307,948)
(81,906,231)
(101,200,494)
(663,091,873)
Net Increase (Decrease) in Net Assets From Share Transactions
41,497,827
6,729,736
38,834,538
11,977,174
NET ASSETS—BEGINNING OF PERIOD
—
—
78,317,888
56,146,922
Net Increase (Decrease) in Net Assets
41,767,458
6,398,358
47,080,278
22,170,966
NET ASSETS—END OF PERIOD
$ 41,767,458
$
6,398,358
$ 125,398,166
$
78,317,888
Undistributed Net Investment Income (Loss) — End of Period
$
305,409
$
(8,948)
$
2,189,795
$
744,936
† Unaudited
* Since the commencement of operations: April 16, 2007.
96
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Japan
Small-Cap
1.25x Strategy Fund
Value Fund
Value Fund
Value Fund
Mid-Cap
Large-Cap
Period
Year
Period
Year
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
September 30,
March 31,
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Ended
2007†
2007
2007†
2007
2007†
2007
2007†
2007
$
(7,804,035)
853,430
$
2,447,036
$
30,665
$
124,519
$
188,690
$
534,844
$
539,295
$
1,852,395
4,243,477
(6,971,765)
(5,308,100)
(1,776,472)
265,170
(9,121,442)
4,854,335
1,810,076
(1,768,861)
2,957,609
23,681,837
4,936,652
(794,129)
(20,183,059)
20,864,675
(2,707,128)
(9,832,829)
(1,480,637)
(4,142,588)
229,905
2,698,324
4,038,073
27,653,722
—
(327,730)
—
—
—
—
—
(12,550)
—
—
(1,259,441)
(268,801)
—
—
—
—
—
—
—
—
—
—
(31,328)
(1,155,997)
—
—
(3,798,023)
(3,115,099)
—
—
(1,816)
(8,702)
—
—
(31,137)
(8,741)
—
—
(22,096)
(8,851)
—
(14,595,489)
—
(12,894)
—
(255,676)
—
(815,339)
—
(23,364,583)
—
(23,412)
—
(295,554)
—
(2,046,161)
21,036,744
9,342,423
16,215,440
40,085,846
3,235,062
922,708
138,706,391
9,476,337
7,721,815
2,959,755
16,016,381
8,394,713
34,996,688
4,760,132
233,175,557
8,985,688
197,181,165
624,507,993
30,036,193
282,683,814
55,704,460
375,653,396
103,669,831
791,840,619
—
—
3,982,068
3,105,953
—
—
1,809
8,636
—
—
30,478
7,447
—
—
18,074
52,050
—
13,164,973
—
12,774
—
254,926
—
1,955,582
(23,043,623)
(5,983,806)
(8,721,288)
(44,450,126)
(4,016,591)
(2,049,829)
(5,962,251)
(3,965,857)
(5,345,984)
(4,910,805)
(4,622,392)
(227,114,562)
(673,336,188)
(35,147,511)
(153,625,423)
(372,023,131)
(124,801,743)
(8,912,462)
(332,347,303)
(15,575,130)
(274,316,359)
(52,146,787)
(689,213,777)
(218,355,220)
(28,581,659)
(25,445,329)
(7,019,968)
(100,721,044)
(71,294,032)
47,088,924
(187,947,300)
123,836,181
(31,288,787)
(58,642,741)
(8,500,605)
(104,887,044)
(71,064,127)
49,491,694
(183,909,227)
149,443,742
69,766,314
128,409,055
16,674,506
121,561,550
89,582,788
40,091,094
210,504,952
61,061,210
$
38,477,527
$
69,766,314
$
8,173,901
$
16,674,506
$
18,518,661
$
89,582,788
$
26,595,725
$ 210,504,952
$
3,300,468
$
2,447,038
$
30,665
$
—
$
465,640
$
276,950
$
1,191,815
$
652,520
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
97
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
Growth Fund
Growth Fund
Small-Cap
Mid-Cap
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
$
(147,022)
$
(358,110)
$
(163,255)
$
(219,777)
Net Change in Unrealized Appreciation (Depreciation) on Investments
920,331
693,371
(5,584,395)
3,923,577
(1,477,308)
1,605,167
(6,499,282)
6,127,485
Net Increase (Decrease) in Net Assets from Operations
1,466,680
(2,018,928)
(35,396)
(591,574)
Distributions to Shareholders from: (Note 1)
Net Investment Income
Investor Class
Advisor Class
—
—
—
—
—
—
—
—
C-Class
A-Class
—
—
—
—
—
—
—
—
Realized Gain on Investments
C-Class
A-Class
—
—
—
(101,237)
H-Class
—
—
—
(94,880)
—
—
—
(1,704,558)
Total Distributions to Shareholders
—
—
—
(1,900,675)
SHARE TRANSACTIONS
Proceeds from Shares Purchased
Investor Class
—
—
—
—
Advisor Class
—
—
—
—
A-Class
C-Class
52,751,073
7,088,944
60,784,481
3,943,683
17,761,361
4,463,698
18,960,792
8,027,918
Value of Shares Purchased through Dividend Reinvestment
H-Class
85,342,255
186,084,728
108,580,419
160,770,254
Investor Class
Advisor Class
—
—
—
—
—
—
—
—
C-Class
A-Class
—
—
—
—
—
101,016
H-Class
—
—
—
—
1,701,213
91,735
Cost of Shares Redeemed
Investor Class
—
—
—
Advisor Class
—
—
—
—
—
A-Class
C-Class
(51,803,400)
(5,416,270)
(58,782,523)
(3,531,904)
(17,743,336)
(2,790,372)
(16,980,901)
(6,757,683)
H-Class
(96,260,583)
(239,734,766)
(106,371,655)
(201,337,401)
Net Increase (Decrease) in Net Assets From Share Transactions
(8,297,981)
(51,236,301)
3,900,115
(35,423,057)
NET ASSETS—BEGINNING OF PERIOD
Net Increase (Decrease) in Net Assets
(6,831,301)
(53,255,229)
3,864,719
27,149,153
80,404,382
15,807,913
53,723,219
(37,915,306)
NET ASSETS—END OF PERIOD
$ 20,317,852
$
27,149,153
$
19,672,632
$
15,807,913
Undistributed Net Investment Income (Loss)—End of Period
$
(147,022)
$
—
$
(163,255)
$
—
† Unaudited
98
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
Large-Cap
U.S. Government
Growth Fund
Money Market Fund
Period
Year
Period
Year
September 30,
March 31,
September 30,
March 31,
Ended
Ended
Ended
Ended
2007†
2007
2007†
2007
$
(4,180,418)
(239,925)
$
1,101,463
(261,842)
$
25,889,090
(1,201)
$
53,412,553
—
5,344,471
2,011,772
—
—
924,128
2,851,393
25,887,889
53,412,553
—
—
—
(20,408,065)
(41,841,340)
—
—
(3,149,457)
(6,802,933)
—
—
(392,296)
—
(1,939,272)
(4,167,012)
(601,268)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(25,889,090)
(53,412,553)
—
—
9,330,259,380
17,412,386,338
2,568,993
—
5,281,268
—
2,173,258,483
3,589,122,862
68,498,483
161,095,146
632,765,423
45,442,231
74,982,888
1,456,374,458
112,086,160
283,534,133
—
—
—
—
20,157,007
41,147,937
—
—
—
—
3,116,288
354,932
6,747,367
557,808
—
—
—
—
1,866,369
—
3,708,601
—
—
—
(9,381,042,928)
(17,446,274,947)
(1,741,278)
—
(3,597,093)
—
(2,172,519,530)
(3,543,630,372)
(58,061,045)
(162,633,144)
(664,916,648)
(46,187,404)
(1,470,712,896)
(71,085,774)
(89,801,514)
(269,447,500)
—
—
33,549,799
14,232,810
(57,446,397)
53,324,270
34,473,927
17,084,203
(57,447,598)
53,324,270
55,504,657
38,420,454
1,325,610,218
1,272,285,948
$ 89,978,584
$
55,504,657
$ 1,268,162,620
$
1,325,610,218
$
(239,925)
$
—
$
(20,990)
$
(20,990)
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
99
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■
Expenses■
(Loss)
Rate■
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
September 30, 2007D
$30.92
$ .21
$
2.39
$
2.60
$
—
$ —
$
—
$
2.60
$33.52
8.41%
1.27%**
1.27%**
1.29%**
70%
$ 114,094
Nova Fund Investor Class
March 31, 2006
25.96
(.12)
3.90
3.78
(.85)
—
(.85)
2.93
28.89
14.68%
1.35%
1.23%
0.95%▲
192%
139,786
March 31, 2007
28.89
(.15)
4.19
4.04
(2.01)
—
(2.01)
2.03
30.92
13.99%
1.25%
1.25%
1.23%▲
144%
113,195
March 31, 2004
15.54
.07
8.51
8.58
—
—
—
8.58
24.12
55.25%
1.25%
1.25%
1.16%▲
540%
187,051
March 31, 2005
24.12
(.11)
1.95
1.84
—
—
—
1.84
25.96
7.63%
1.21%
1.21%
0.82%▲
388%
175,042
March 31, 2003
25.56
.08
(10.10)
(10.02)
—
—
—
(10.02)
15.54
(39.20)%
1.27%
1.27%
1.35%▲
603%
130,951
September 30, 2007D
Nova Fund Advisor Class
March 31, 2007
27.73
(.28)
4.00
3.72
(2.01)
—
(2.01)
1.71
29.44
13.41%
1.75%
1.75%
0.73%▲
144%
36,441
29.44
.13
2.26
2.39
—
—
—
2.39 31.83
-->2.39
31.83
8.12%
1.76%**
1.76%**
0.82%**
70%
34,371
March 31, 2005
23.42
(.23)
1.89
1.66
—
—
—
1.66
25.08
7.09%
1.71%
1.71%
0.32%▲
388%
52,642
March 31, 2006
25.08
(.25)
3.75
3.50
(.85)
—
(.85)
2.65
27.73
14.07%
1.85%
1.74%
0.44%▲
192%
41,002
March 31, 2004
15.17
(.05)
8.30
8.25
—
—
—
8.25
23.42
54.42%
1.74%
1.74%
0.57%▲
540%
46,405
March 31, 2003
25.11
(.03)
(9.91)
(9.94)
—
—
—
(9.94)
15.17
(39.59)%
1.77%
1.77%
0.74%▲
603%
27,130
Nova Fund A-Class
March 31, 2007
27.87
(.21)
4.02
3.81
(2.01)
—
(2.01)
1.80
29.67
13.67%
1.50%
1.50%
0.98%▲
144%
15,586
September 30, 2007D
29.67
.16
2.29
2.45
—
—
—
2.45 32.12
-->2.45
32.12
8.26%
1.51%**
1.51%**
1.04%**
70%
13,186
March 31, 2005
23.42
(.17)
1.90
1.73
—
—
—
1.73
25.15
7.39%
1.45%
1.45%
0.58%▲
388%
18,463
March 31, 2006
25.15
(.19)
3.76
3.57
(.85)
—
(.85)
2.72
27.87
14.32%
1.60%
1.49%
0.69%▲
192%
29,315
March 31, 2004*
23.42
—
—
—
—
—
—
—
23.42
0.00%
0.00%**à
0.00%**à
0.81%**▲
540%
1
Nova Fund C-Class
March 31, 2007
27.39
September 30, 2007D
28.91
.04
2.22
2.26
—
—
—
2.26 31.17
-->2.26
31.17
7.82%
2.26%**
2.26%**
0.29%**
70%
43,067
March 31, 2006
24.89
(.38)
3.73
3.35
(.85)
—
(.85)
2.50
27.39
13.58%
2.35%
2.24%
(0.06)%▲
192%
50,131
(.42)
3.95
3.53
(2.01)
—
(2.01)
1.52
28.91
12.88%
2.25%
2.25%
0.23%▲
144%
42,925
March 31, 2004
15.20
(.12)
8.28
8.16
—
—
—
8.16
23.36
53.72%
2.26%
2.26%
0.25%▲
540%
32,710
March 31, 2005
23.36
(.35)
1.88
1.53
—
—
—
1.53
24.89
6.55%
2.21%
2.21%
(0.18)%▲
388%
49,464
March 31, 2003
25.28
(.08)
(10.00)
(10.08)
—
—
—
(10.08)
15.20
(39.87)%
2.28%
2.28%
0.45%▲
603%
12,627
September 30, 2007D
27.32
.29
1.74
2.03
—
—
—
2.03 29.35
-->2.03
29.35
7.43%
1.51%**
1.51%**
2.06%**
68%
4,088
S&P 500 Fund A-Class
March 31, 2007*
25.00
.30
2.53
2.83
(.11)
(.40)
(.51)
2.32
27.32
11.34%
1.55%**
1.55%**
1.35%**
119%
2,063
September 30, 2007D
S&P 500 Fund C-Class
March 31, 2007*
25.00
.19
2.47
2.66
(.11)
(.40)
(.51)
2.15
27.15
10.65%
2.25%**
2.25%**
0.84%**
119%
1,971
27.15
.18
1.73
1.91
—
—
—
1.91 29.06
-->1.91
29.06
7.03%
2.26%**
2.26%**
1.25%**
68%
2,051
September 30, 2007D
27.31
.29
1.73
2.02
—
—
—
2.02 29.33
-->2.02
29.33
7.40%
1.52%**
1.52%**
2.02%**
68%
19,114
S&P 500 Fund H-Class
March 31, 2007*
25.00
.30
2.52
2.82
(.11)
(.40)
(.51)
2.31
27.31
11.29%
1.54%**
1.54%**
1.33%**
119%
6,374
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■
Expenses■
(Loss)
Rate■
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
September 30, 2007D
Inverse S&P 500 Strategy Fund Investor Class
March 31, 2007 †††
40.30
$37.85
(.20)
(1.15)
(1.35)
(1.10)
—
(1.10)
(2.45)
37.85
(3.26)%
1.36%
1.36%
3.85%▲
—
293,092
$ .48
$ (2.23)
$ (1.75)
$ —
$ —
$ —
$ (1.75)
$36.10
(4.62)%
1.41%**
1.41%**
3.80%**
—
$ 244,696
March 31, 2005 †††
45.85
(.20)
(2.20)
(2.40)
—
—
—
(2.40)
43.45
(5.23)%
1.38%
1.38%
0.25%▲
—
326,085
March 31, 2006 †††
43.45
(.20)
(2.35)
(2.55)
(.60)
—
(.60)
(3.15)
40.30
(5.84)%
1.41%
1.38%
2.29%▲
—
329,785
March 31, 2003 †††
52.25
.05
13.35
13.40
(.35)
—
(.35)
13.05
65.30
25.65%
1.41%
1.41%
0.58%▲
—
471,600
March 31, 2004 †††
65.30
(.20)
(17.25)
(17.45)
—
(2.00)
(2.00)
(19.45)
45.85
(26.90)%
1.38%
1.38%
(0.28)%▲
—
353,496
Inverse S&P 500 Strategy Fund Advisor Class
March 31, 2007 †††
September 30, 2007D
36.00
.39
(2.16)
(1.77)
—
—
—
(1.77)
34.23
(4.92)%
1.90%**
1.90%**
3.30%**
—
13,950
March 31, 2006 †††
41.80
(.40)
(2.25)
(2.65)
(.60)
—
(.60)
(3.25)
38.55
(6.32)%
1.91%
1.88%
1.79%▲
—
45,332
38.55
(.35)
(1.10)
(1.45)
(1.10)
—
(1.10)
(2.55)
36.00
(3.67)%
1.87%
1.87%
3.34%▲
—
22,712
March 31, 2004 †††
63.50
(.45)
(16.70)
(17.15)
—
(2.00)
(2.00)
(19.15)
44.35
(27.19)%
1.87%
1.87%
(0.77)%▲
—
45,073
March 31, 2005 †††
44.35
(.40)
(2.15)
(2.55)
—
—
—
(2.55)
41.80
(5.75)%
1.88%
1.88%
(0.25)%▲
—
40,964
March 31, 2003 †††
51.10
(.30)
13.05
12.75
(.35)
—
(.35)
12.40
63.50
24.95%
1.89%
1.89%
0.07%▲
—
39,686
Inverse S&P 500 Strategy Fund A-Class
March 31, 2007 †††
38.60
(.25)
(1.15)
(1.40)
(1.10)
—
(1.10)
(2.50)
36.10
(3.53)%
1.61%
1.61%
3.60%▲
—
11,388
September 30, 2007D
36.10
.44
(2.16)
(1.72)
—
—
—
(1.72)
34.38
(4.76)%
1.66%**
1.66%**
3.56%**
—
9,803
March 31, 2006 †††
41.85
(.30)
March 31, 2005 †††
44.35
(.30)
(2.20)
(2.50)
—
—
—
(2.50)
41.85
(5.64)%
1.63%
1.63%
0.00%▲
—
7,318
(2.35)
(2.65)
(.60)
—
(.60)
(3.25)
38.60
(6.31)%
1.66%
1.63%
2.04%▲
—
8,932
March 31, 2004* †††
44.35
—
—
—
—
—
—
—
44.35
0.00%
0.00%**à
0.00%**à
0.09%**▲
—
1
September 30, 2007D
35.50
Inverse S&P 500 Strategy Fund C-Class
March 31, 2007 †††
38.25
(.55)
(1.10)
(1.65)
(1.10)
—
(1.10)
(2.75)
35.50
(4.22)%
2.36%
2.36%
2.85%▲
—
42,651
.32
(2.15)
(1.83)
—
—
—
(1.83)
33.67
(5.15)%
2.40%**
2.40%**
2.83%**
—
30,644
March 31, 2006 †††
41.65
(.60)
March 31, 2005 †††
44.45
(.65)
(2.15)
(2.80)
—
—
—
(2.80)
41.65
(6.30)%
2.38%
2.38%
(0.75)%▲
—
43,763
(2.20)
(2.80)
(.60)
—
(.60)
(3.40)
38.25
(6.70)%
2.41%
2.38%
1.29%▲
—
39,146
March 31, 2004 †††
64.00
(.70)
(16.85)
(17.55)
—
March 31, 2003 †††
(2.00)
(2.00)
(19.55)
44.45
(27.62)%
2.39%
2.39%
(1.33)%▲
—
45,604
51.75
(.60)
13.20
12.60
(.35)
—
(.35)
12.25
64.00
24.35%
2.40%
2.40%
(0.45)%▲
—
17,540
September 30, 2007D
11.78
(.04)
2.18
2.14
—
—
—
2.14
13.92
18.17%
1.30%**
1.30%**
(0.58)%**
15%
769,093
OTC Fund Investor Class
March 31, 2006
9.94
(.05)
1.49
1.44
(.04)
—
(.04)
1.40
11.34
14.45%
1.20%
1.20%
(0.49)%
122%
893,295
March 31, 2007
11.34
(.06)
.50
.44
—
—
—
.44
11.78
3.88%
1.22%
1.22%
(0.52)%
71%
635,744
March 31, 2004
7.02
(.09)
2.80
2.71
—
—
—
2.71
9.73
38.60%
1.22%
1.22%
(0.98)%
139%
858,816
March 31, 2005
9.73
.04
.17
.21
—
—
—
.21
9.94
2.16%
1.20%
1.20%
0.40%
132%
801,185
March 31, 2003
10.16
(.08)
(3.06)
(3.14)
—
—
—
(3.14)
7.02
(30.91)%
1.27%
1.27%
(1.08)%
180%
653,999
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
Net Increase
VALUE,
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
Net
and
(Decrease)
Distributions
Distributions
Net Increase
NET ASSET
Net
Net Assets,
BEGINNING
Income
Gains (Losses)
Period Ended
OF PERIOD
(Loss)†
on Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return††
Expenses■
Expenses■
(Loss)
Rate■
omitted)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
OTC Fund Advisor Class
March 31, 2007
10.90
(.11)
.47
September 30, 2007D
$11.26
$
(.07)
.36
—
—
—
.36
11.26
3.30%
1.73%
1.73%
(1.07)%
71%
9,349
$ 2.08
$ 2.01
$ —
$ —
$ —
$ 2.01
$13.27
17.85%
1.80%**
1.80%**
(1.07)%**
15%
$ 29,495
March 31, 2005
9.46
(.02)
.16
.14
—
—
—
.14
9.60
1.48%
1.69%
1.69%
(0.25)%
132%
19,887
March 31, 2006
9.60
(.10)
1.44
1.34
(.04)
—
(.04)
1.30
10.90
13.92%
1.70%
1.70%
(1.00)%
122%
27,832
March 31, 2003
9.97
(.11)
(3.01)
(3.12)
—
—
—
(3.12)
6.85
(31.29)%
1.76%
1.76%
(1.56)%
180%
43,839
March 31, 2004
6.85
(.13)
2.74
2.61
—
—
—
2.61
9.46
38.10%
1.71%
1.71%
(1.47)%
139%
57,535
OTC Fund A-Class
March 31, 2007
10.96
(.08)
.48
.40
—
—
—
.40
11.36
3.65%
1.46%
1.46%
(0.73)%
71%
3,686
September 30, 2007D
11.36
(.05)
2.09
2.04
—
—
—
2.04
13.40
17.96%
1.56%**
1.56%**
(0.82)%**
15%
8,276
March 31, 2006
9.63
March 31, 2005
9.46
.06
.11
.17
—
—
—
.17
9.63
1.80%
1.45%
1.45%
0.59%
132%
1,818
(.08)
1.45
1.37
(.04)
—
(.04)
1.33
10.96
14.18%
1.46%
1.46%
(0.78)%
122%
2,491
March 31, 2004*
9.46
—
—
—
—
—
—
—
9.46
0.00%
0.00%**à
0.00%**à
0.00%**
139%
1
OTC Fund C-Class
March 31, 2007
10.73
(.16)
.45
.29
—
—
—
.29
11.02
2.70%
2.22%
2.22%
(1.55)%
71%
10,032
September 30, 2007D
11.02
(.10)
2.04
1.94
—
—
—
1.94
12.96
17.60%
2.30%**
2.30%**
(1.59)%**
15%
17,634
March 31, 2005
9.41
(.03)
.12
.09
—
—
—
.09
9.50
0.96%
2.19%
2.19%
(0.33)%
132%
14,422
March 31, 2006
9.50
(.16)
1.43
1.27
(.04)
—
(.04)
1.23
10.73
13.33%
2.21%
2.21%
(1.52)%
122%
18,707
March 31, 2004
6.86
(.18)
2.73
2.55
—
—
—
2.55
9.41
37.17%
2.23%
2.23%
(1.97)%
139%
13,653
March 31, 2003
10.03
(.14)
(3.03)
(3.17)
—
—
—
(3.17)
6.86
(31.61)%
2.26%
2.26%
(1.98)%
180%
8,331
Inverse OTC Strategy Fund Investor Class
March 31, 2007
21.80
September 30, 2007D
(.11)
.54
.43
(.56)
—
(.56)
(.13)
21.67
2.01%
1.40%
1.40%
3.79%▲
—
104,617
21.67
.38
(3.13)
(2.75)
—
—
—
(2.75)
18.92
(12.69)%
1.48%**
1.48%**
3.75%**
—
73,633
March 31, 2005
25.69
(.11)
(1.03)
(1.14)
—
—
—
(1.14)
24.55
(4.44)%
1.38%
1.38%
0.20%▲
—
198,288
March 31, 2006
24.55
(.11)
(2.31)
(2.42)
(.33)
—
(.33)
(2.75)
21.80
(9.85)%
1.39%
1.38%
2.22%▲
—
143,742
March 31, 2004
37.79
(.13)
(11.97)
(12.10)
—
—
—
(12.10)
25.69
(32.02)%
1.40%
1.40%
(0.37)%▲
—
209,994
March 31, 2003
32.29
7.34
(.70)
6.64
(1.14)
—
(1.14)
5.50
37.79
20.39%
1.42%
1.42%
18.62%▲
—
146,416
September 30, 2007D
21.28
.34
(3.09)
(2.75)
—
—
—
(2.75)
18.53
(12.92)%
1.97%**
1.97%**
3.31%**
—
2,899
Inverse OTC Strategy Fund Advisor Class
March 31, 2007
21.51
March 31, 2006
24.34
(.22)
(2.28)
(2.50)
(.33)
—
(.33)
(2.83)
21.51
(10.27)%
1.89%
1.89%
1.71%▲
—
10,390
(.22)
.55
.33
(.56)
—
(.56)
(.23)
21.28
1.56%
1.90%
1.90%
3.29%▲
—
11,436
March 31, 2004*
29.97
(.16)
(4.21)
(4.37)
—
—
—
(4.37)
25.60
(14.58)%
1.90%**
1.90%**
(0.87)%**▲
—
17,975
March 31, 2005
25.60
(.24)
(1.02)
(1.26)
—
—
—
(1.26)
24.34
(4.92)%
1.88%
1.88%
(0.30)%▲
—
17,059
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■
Expenses■
(Loss)
Rate■
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
September 30, 2007D
$21.43
$ .35
$ (3.10)
$ (2.75)
$
—
$ —
$
—
$ (2.75)
$18.68
(12.83)%
1.72%**
1.72%**
3.51%**
—
$
2,149
Inverse OTC Strategy Fund A-Class
March 31, 2006
24.39
(.16)
(2.29)
(2.45)
(.33)
—
(.33)
(2.78)
21.61
(10.04)%
1.63%
1.63%
1.97%▲
—
2,108
March 31, 2007
21.61
(.16)
.54
.38
(.56)
—
(.56)
(.18)
21.43
1.79%
1.64%
1.64%
3.55%▲
—
4,086
March 31, 2004*
25.60
—
—
—
—
—
—
—
25.60
0.00%
0.00%**à
0.00%**à
0.10%**▲
—
1
March 31, 2005
25.60
(.17)
(1.04)
(1.21)
—
—
—
(1.21)
24.39
(4.73)%
1.62%
1.62%
(0.04)%▲
—
5,697
Inverse OTC Strategy Fund C-Class
March 31, 2007
20.63
(.32)
.52
.20
(.56)
—
(.56)
(.36)
20.27
1.00%
2.40%
2.40%
2.79%▲
—
17,834
September 30, 2007D
20.27
.26
(2.93)
(2.67)
—
—
—
(2.67)
17.60
(13.17)%
2.47%**
2.47%**
2.77%**
—
11,118
March 31, 2005
24.83
(.35)
(1.00)
(1.35)
—
—
—
(1.35)
23.48
(5.44)%
2.38%
2.38%
(0.80)%▲
—
15,693
March 31, 2006
23.48
(.32)
(2.20)
(2.52)
(.33)
—
(.33)
(2.85)
20.63
(10.73)%
2.40%
2.39%
1.21%▲
—
13,527
March 31, 2003
31.93
3.08
3.05
6.13
(1.14)
—
(1.14)
4.99
36.92
19.02%
2.41%
2.41%
8.74%▲
—
2,673
March 31, 2004
36.92
(.38)
(11.71)
(12.09)
—
—
—
(12.09)
24.83
(32.75)%
2.41%
2.41%
(1.38)%▲
—
34,375
September 30, 2007D
41.56
.18
.62
.80
—
—
—
.80 42.36
-->.80
42.36
1.92%
1.66%**
1.66%**
0.83%**
125%
2,413
Mid-Cap 1.5x Strategy Fund A-Class
March 31, 2006
31.86
.01
8.65
8.66
—
(.38)
(.38)
8.28
40.14
27.27%
1.92%
1.66%
0.03%
528%
4,948
March 31, 2007
40.14
.05
2.74
2.79
—
(1.37)
(1.37)
1.42
41.56
7.11%
1.67%
1.67%
0.13%
296%
2,806
March 31, 2004*
28.30
—
—
—
—
—
—
—
28.30
0.00%
0.00%**à
0.00%**à
0.00%**
1,239%
4
March 31, 2005
28.30
(.03)
3.59
3.56
—
—
—
3.56
31.86
12.58%
1.63%
1.63%
(0.10)%
669%
1,050
September 30, 2007D
39.82
.02
Mid-Cap 1.5x Strategy Fund C-Class
March 31, 2007
38.81
(.23)
2.61
2.38
—
(1.37)
(1.37)
1.01
39.82
6.29%
2.41%
2.41%
(0.62)%
296%
17,112
.60
.62
—
—
—
.62 40.44
-->.62
40.44
1.56%
2.41%**
2.41%**
0.09%**
125%
15,026
March 31, 2005
27.76
(.26)
3.53
3.27
—
—
—
3.27
31.03
11.78%
2.37%
2.37%
(0.91)%
669%
17,912
March 31, 2006
31.03
(.25)
8.41
8.16
—
(.38)
(.38)
7.78
38.81
26.38%
2.66%
2.40%
(0.72)%
528%
28,836
March 31, 2003
26.00
(.17)
(9.87)
(10.04)
(.11)
—
(.11)
(10.15)
15.85
(38.65)%
2.43%
2.43%
(0.95)%
2,322%
5,610
March 31, 2004
15.85
(.31)
12.22
11.91
—
—
—
11.91
27.76
75.14%
2.41%
2.41%
(1.31)%
1,239%
14,444
September 30, 2007D
41.58
.19
.61
.80
—
—
—
.80 42.38
-->.80
42.38
1.92%
1.67%**
1.67%**
0.86%**
125%
40,875
Mid-Cap 1.5x Strategy Fund H-Class
March 31, 2007
40.17
.06
2.72
2.78
—
(1.37)
(1.37)
1.41
41.58
7.08%
1.67%
1.67%
0.16%
296%
24,918
March 31, 2004
28.30
(.06)
3.62
3.56
—
—
—
3.56
31.86
12.58%
1.62%
1.62%
(0.21)%
669%
59,274
March 31, 2006
31.86
—§§
8.69
8.69
—
(.38)
(.38)
8.31
40.17
27.36%
1.90%
1.64%
0.01%
528%
50,883
March 31, 2003
26.08
(.07)
(9.86)
(9.93)
(.11)
—
(.11)
(10.04)
16.04
(38.11)%
1.69%
1.69%
(0.32)%
2,322%
14,634
March 31, 2004
16.04
(.14)
12.40
12.26
—
—
—
12.26
28.30
76.43%
1.66%
1.66%
(0.56)%
1,239%
68,193
September 30, 2007D
33.78
.55
(1.09)
(.54)
—
—
—
(.54)
33.24
(1.60)%
1.66%**
1.66%**
3.33%**
—
699
Inverse Mid-Cap Strategy Fund A-Class
March 31, 2007
March 31, 2006
44.01
.87
(7.20)
(6.33)
(.65)
—
(.65)
(6.98)
37.03
(14.44)%
1.66%
1.66%
2.12%
—
161
37.03
1.35
(1.81)
(.46)
(2.79)
—
(2.79)
(3.25)
33.78
(1.35)%
1.65%
1.65%
3.52%
—
477
March 31, 2004*
49.01
—
—
—
March 31, 2005
49.01
(.06)
(4.94)
(5.00)
—
—
—
(5.00)
44.01
(10.20)%
—
—
—
—
49.01
0.00%
0.00%**à
0.00%**à
0.00%**
—
1
1.63%
1.63%
(0.13)%
—
61
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
VALUE,
Investment
Unrealized
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)
September 30, 2007D
$32.89
$
.41
$
(1.04)
$
(.63)
$
—
$
—
$
—
$
(.63)
$32.26
(1.92)%
2.41%**
2.41%**
2.55%**
—
$
1,263
Inverse Mid-Cap Strategy Fund C-Class
March 31, 2006
43.62
.15
(6.69)
(6.54)
(.65)
—
(.65)
(7.19)
36.43
(15.05)%
2.41%
2.41%
1.54%
—
1,147
March 31, 2007
36.43
1.05
(1.80)
(.75)
(2.79)
—
(2.79)
(3.54)
32.89
(2.19)%
2.40%
2.40%
2.81%
—
801
March 31, 2004*
50.00
(.08)
(.94)
(1.02)
—
—
—
(1.02)
48.98
(2.04)%
2.23%**
2.23%**
(1.45)%**
—
137
March 31, 2005
48.98
(.27)
(5.09)
(5.36)
—
—
—
(5.36)
43.62
(10.94)%
2.36%
2.36%
(0.58)%
—
1,011
September 30, 2007D
33.78
.56
(1.10)
(.54)
—
—
—
(.54)
33.24
(1.60)%
1.66%**
1.66%**
3.39%**
—
11,181
Inverse Mid-Cap Strategy Fund H-Class
March 31, 2006
44.01
.83
(7.15)
(6.32)
(.65)
—
(.65)
(6.97)
37.04
(14.42)%
1.64%
1.64%
2.01%
—
18,475
March 31, 2007
37.04
1.35
(1.82)
(.47)
(2.79)
—
(2.79)
(3.26)
33.78
(1.38)%
1.66%
1.66%
3.51%
—
15,531
March 31, 2005
49.01
.18
March 31, 2004*
50.00
(.05)
(.94)
(.99)
—
—
—
(.99)
49.01
(1.98)%
1.54%**
1.54%**
(0.74)%**
—
2,678
(5.18)
(5.00)
—
—
—
(5.00)
44.01
(10.20)%
1.60%
1.60%
0.39%
—
30,073
Russell 2000® 1.5x Strategy Fund A-Class
September 30, 2007D
37.24
.15
(.31)
(.16)
—
—
—
(.16)
37.08
(0.43)%
1.66%**
1.66%**
0.80%**
125%
6,429
March 31, 2006
27.54
.04
9.75
9.79
—
—
—
9.79
37.33
35.55%
2.06%
1.65%
0.13%
441%
6,789
March 31, 2007
37.33
.10
1.24
1.34
—
(1.43)
(1.43)
(.09)
37.24
3.60%
1.66%
1.66%
0.28%
179%
5,976
March 31, 2005
26.22
(.03)
1.51
March 31, 2004*
26.22
—
—
—
—
—
—
—
26.22
0.00%
0.00%**à
0.00%**à
0.00%**
965%
4
1.48
—
(.16)
(.16)
1.32
27.54
5.63%
1.61%
1.61%
(0.10)%
501%
3,340
Russell 2000® 1.5x Strategy Fund C-Class
September 30, 2007D
35.51
.01
(.29)
(.28)
—
—
—
(.28)
35.23
(0.79)%
2.41%**
2.41%**
0.07%**
125%
19,501
March 31, 2006
26.69
(.21)
9.45
9.24
—
—
—
9.24
35.93
34.62%
2.81%
2.40%
(0.70)%
441%
31,956
March 31, 2007
35.93
(.16)
1.17
1.01
—
(1.43)
(1.43)
(.42)
35.51
2.81%
2.41%
2.41%
(0.47)%
179%
19,942
March 31, 2005
25.63
(.26)
1.48
1.22
March 31, 2004
12.75
(.28)
13.16
12.88
—
—
—
12.88
25.63
101.02%
2.41%
2.41%
(1.34)%
965%
48,851
—
(.16)
(.16)
1.06
26.69
4.75%
2.37%
2.37%
(1.00)%
501%
18,915
March 31, 2003
22.47
(.15)
(9.53)
(9.68)
—
(.04)
(.04)
(9.72)
12.75
(43.12)%
2.43%
2.43%
(0.91)%
746%
13,530
September 30, 2007D
Russell 2000® 1.5x Strategy Fund H-Class
March 31, 2007
37.32
.10
1.23
1.33
—
(1.43)
(1.43)
(.10)
37.22
3.57%
1.66%
1.66%
0.27%
179%
42,861
37.22
.15
(.30)
(.15)
—
—
—
(.15)
37.07
(0.40)%
1.66%**
1.66%**
0.79%**
125%
34,327
March 31, 2005
26.22
(.07)
1.52
1.45
—
(.16)
(.16)
1.29
27.51
5.52%
1.62%
1.62%
(0.26)%
501%
68,084
March 31, 2006
27.51
.03
9.78
9.81
—
—
—
9.81
37.32
35.66%
2.05%
1.64%
0.10%
441%
170,698
March 31, 2003
22.61
(.03)
(9.60)
(9.63)
—
(.04)
(.04)
(9.67)
12.94
(42.63)%
1.69%
1.69%
(0.20)%
746%
32,101
March 31, 2004
12.94
(.14)
13.42
13.28
—
—
—
13.28
26.22
102.63%
1.66%
1.66%
(0.62)%
965%
174,320
Russell 2000® Fund A-Class
September 30, 2007D
27.64
.21
(.08)
.13
—
—
—
.13
27.77
0.47%
1.52%**
1.52%**
1.49%**
271%
551
March 31, 2007*
25.00
.35
2.43
2.78
(.14)
—
(.14)
2.64
27.64
11.13%
1.51%**
1.51%**
1.54%**
335%
275
September 30, 2007D
27.48
.13
(.07)
.06
—
—
—
.06
27.54
0.22%
2.26%**
2.26%**
0.93%**
271%
1,017
Russell 2000® Fund C-Class
March 31, 2007*
25.00
.17
2.45
2.62
(.14)
—
(.14)
2.48
27.48
10.49%
2.28%**
2.28%**
0.76%**
335%
739
September 30, 2007D
27.64
.28
(.14)
.14
—
—
—
.14
27.78
0.51%
1.51%**
1.51%**
2.01%**
271%
5,087
Russell 2000® Fund H-Class
March 31, 2007*
25.00
.34
2.44
2.78
(.14)
—
(.14)
2.64
27.64
11.13%
1.52%**
1.52%**
1.55%**
335%
13,248
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
NET ASSET
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
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
September 30, 2007D
$35.00
$ .58
Inverse Russell 2000® Strategy Fund A-Class
March 31, 2007
36.96
1.38
(1.65)
$ (.24)
$ .34
$
—
$ —
$
—
$ .34
$35.34
0.97%
1.66%**
3.34%**
—
$
7,999
March 31, 2006
46.09
.85
(9.26)
(8.41)
(.72)
—
(.72)
(9.13)
36.96
(18.40)%
1.63%
1.97%
—
1,067
(.27)
(1.69)
—
(1.69)
(1.96)
35.00
(0.67)%
1.65%
3.64%
—
9,905
March 31, 2004*
48.80
—
—
—
—
—
—
—
48.80
0.00%
0.00%**à
0.00%**
—
1
March 31, 2005
48.80
(.02)
(2.69)
(2.71)
—
—
—
(2.71)
46.09
(5.55)%
1.63%
(0.03)%
—
404
September 30, 2007D
34.18
.44
(.24)
.20
Inverse Russell 2000® Strategy Fund C-Class
March 31, 2007
36.40
—
—
—
.20
34.38
0.59%
2.41%**
2.57%**
—
7,329
March 31, 2006
45.71
.56
(9.15)
(8.59)
(.72)
—
(.72)
(9.31)
36.40
(18.95)%
2.40%
1.33%
—
3,164
1.07
(1.60)
(.53)
(1.69)
—
(1.69)
(2.22)
34.18
(1.40)%
2.40%
2.87%
—
8,455
March 31, 2005
48.77
March 31, 2004*
50.00
(.08)
(1.15)
(1.23)
—
—
—
(1.23)
48.77
(2.46)%
2.24%**
(1.42)%**
—
492
(.49)
(2.57)
(3.06)
—
—
—
(3.06)
45.71
(6.27)%
2.39%
(0.97)%
—
3,951
September 30, 2007D
35.02
Inverse Russell 2000® Strategy Fund H-Class
March 31, 2007
36.98
.58
(.24)
.34
—
—
—
.34
35.36
0.97%
1.66%**
3.30%**
—
53,015
March 31, 2006
46.09
.91
(9.30)
(8.39)
(.72)
—
(.72)
(9.11)
36.98
(18.36)%
1.65%
2.14%
—
52,201
1.36
(1.63)
(.27)
(1.69)
—
(1.69)
(1.96)
35.02
(0.67)%
1.65%
3.56%
—
48,718
March 31, 2005
March 31, 2004*
48.80
.04
50.00
(.04)
(1.16)
(1.20)
—
—
—
(1.20)
48.80
(2.40)%
1.54%**
(0.72)%**
—
5,054
(2.75)
(2.71)
—
—
—
(2.71)
46.09
(5.55)%
1.63%
0.09%
—
46,832
September 30, 2007D
Government Long Bond 1.2x Strategy Fund Investor Class
March 31, 2007
10.50
.41
.09
.50
(.41)
—
(.41)
.09
10.59
4.87%
0.96%
3.92%
1,357%
40,816
10.59
.20
(.04)
.16
(.20)
—
(.20)
(.04)
10.55
1.59%
0.97%**
3.94%**
512%
38,117
March 31, 2005
11.03
.42
—
.42
(.41)
—
(.41)
.01
11.04
4.04%
0.93%
3.95%
737%
25,992
March 31, 2006
11.04
.42
(.54)
(.12)
(.42)
—
(.42)
(.54)
10.50
(1.37)%
0.94%
3.69%
1,451%
33,223
March 31, 2004
10.95
.41
March 31, 2003
9.12
.41
1.83
2.24
(.41)
—
(.41)
1.83
10.95
24.93%
0.97%
4.00%
2,404%
51,370
.08
.49
(.41)
—
(.41)
.08
11.03
4.65%
0.95%
3.84%
1,143%
25,188
September 30, 2007D
10.54
Government Long Bond 1.2x Strategy Fund Advisor Class
March 31, 2007
10.50
.37
.03
.40
(.36)
—
(.36)
.04
10.54
3.86%
1.46%
3.44%
1,357%
10,815
.18
(.03)
.15
(.18)
—
(.18)
(.03)
10.51
1.44%
1.46%**
3.41%**
512%
7,566
March 31, 2005
11.04
.36
.04
.40
(.37)
—
(.37)
.03
11.07
3.75%
1.41%
3.32%
737%
53,283
March 31, 2006
11.07
.37
(.57)
(.20)
(.37)
—
(.37)
(.57)
10.50
(2.10)%
1.42%
3.16%
1,451%
21,200
March 31, 2004*
10.00
.23
1.04
1.27
(.23)
—
(.23)
1.04
11.04
12.84%
1.45%**
3.21%**
1,143%
46,690
September 30, 2007D
10.60
Government Long Bond 1.2x Strategy Fund A-Class
March 31, 2007
10.50
.38
.10
.48
(.38)
—
(.38)
.10
10.60
4.71%
1.22%
3.64%
1,357%
11,460
.19
(.03)
.16
(.19)
—
(.19)
(.03)
10.57
1.56%
1.21%**
3.68%**
512%
11,949
March 31, 2005
11.05
.39
.02
.41
(.39)
—
(.39)
.02
11.07
3.86%
1.15%
3.63%
737%
1,703
March 31, 2006
11.07
.40
(.58)
(.18)
(.39)
—
(.39)
(.57)
10.50
(1.88)%
1.17%
3.45%
1,451%
1,503
March 31, 2004*
11.05
—
—
—
—
—
—
—
11.05
0.00%
0.00%**à
0.00%**
1,143%
1
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,
NET ASSET
Investment
Unrealized
in Net Asset
from Net
from Net
(Decrease) in
VALUE,
Total
Investment
Portfolio
End of
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■
Expenses§■
(Loss)
Rate■
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Operating
Income
Turnover
Period (000’s
September 30, 2007D
Government Long Bond 1.2x Strategy Fund C-Class
March 31, 2007
10.50
.31
.08
.39
(.30)
—
(.30)
.09
10.59
3.84%
1.96%
1.96%
2.93%
1,357%
15,640
$10.59
$ .15
$ (.04)
$ .11
$ (.15)
$ —
$ (.15)
$ (.04)
$10.55
1.09%
1.95%**
1.95%**
2.94%**
512%
$
8,106
March 31, 2006
March 31, 2005
11.07
.31
(.57)
(.26)
(.31)
—
(.31)
(.57)
10.50
(2.61)%
1.93%
1.93%
2.69%
1,451%
7,293
March 31, 2004
10.97
.30
.08
.38
(.30)
—
(.30)
.08
11.05
3.59%
1.96%
1.96%
2.85%
1,143%
3,828
11.05
.31
.02
.33
(.31)
—
(.31)
.02
11.07
3.10%
1.92%
1.92%
2.86%
737%
11,005
March 31, 2003
9.12
.31
1.85
2.16
(.31)
—
(.31)
1.85
10.97
23.93%
1.95%
1.95%
2.86%
2,404%
2,163
September 30, 2007D
19.37
.36
(.19)
.17
—
—
—
.17
19.54
0.88%
3.34%**
1.40%**
3.57%**
244%
284,579
Inverse Government Long Bond Strategy Fund Investor Class
March 31, 2006
18.94
(.07)
March 31, 2007
.82
.75
—
—
—
.75
19.69
3.96%
4.66%
1.33%
0.78%▲
179%
768,588
19.69
(.09)
.40
.31
(.63)
—
(.63)
(.32)
19.37
1.66%
4.97%
1.36%
3.68%▲
192%
313,117
March 31, 2004
21.23
(.09)
(1.37)
(1.46)
—
—
—
(1.46)
19.77
(6.88)%
5.57%
1.38%
(3.84)%▲
187%
898,294
March 31, 2005
19.77
(.08)
(.75)
(.83)
—
—
—
(.83)
18.94
(4.20)%
5.11%
1.32%
1.53%▲
101%
1,472,040
March 31, 2003
26.40
(.04)
(5.13)
(5.17)
—
—
—
(5.17)
21.23
(19.53)%
5.65%
1.41%
(3.17)%▲
—
128,958
September 30, 2007D
19.01
.30
(.18)
.12
—
—
—
.12
19.13
0.63%
3.93%**
1.89%**
3.08%**
244%
22,914
Inverse Government Long Bond Strategy Fund Advisor Class
March 31, 2007
19.43
March 31, 2006
18.79
(.16)
.80
.64
—
—
—
.64
19.43
3.41%
5.16%
1.83%
0.28%▲
179%
99,546
(.18)
.39
.21
(.63)
—
(.63)
(.42)
19.01
1.17%
5.47%
1.86%
3.18%▲
192%
43,782
March 31, 2004*
22.41
(.13)
(2.57)
(2.70)
—
—
—
(2.70)
19.71
(12.05)%
6.05%**
1.86%**
(4.32)%**▲
187%
52,298
March 31, 2005
19.71
(.17)
(.75)
(.92)
—
—
—
(.92)
18.79
(4.67)%
5.61%
1.82%
1.03%▲
101%
232,541
Inverse Government Long Bond Strategy Fund A-Class
March 31, 2007
19.52
September 30, 2007D
19.16
(.14)
.41
.27
(.63)
—
(.63)
(.36)
19.16
1.47%
5.22%
1.61%
3.43%▲
192%
69,606
.33
(.19)
.14
—
—
—
.14
19.30
0.73%
3.78%**
1.64%**
3.37%**
244%
33,276
March 31, 2006
March 31, 2005
19.71
(.13)
(.74)
(.87)
—
—
—
(.87)
18.84
(4.41)%
5.35%
1.56%
1.29%▲
101%
177,178
18.84
(.12)
.80
.68
—
—
—
.68
19.52
3.61%
4.91%
1.58%
0.53%▲
179%
124,679
March 31, 2004*
19.71
—
—
—
—
—
—
—
19.71
0.00%
0.00%**à
0.00%**à
(3.39)%**▲
187%
5,057
Inverse Government Long Bond Strategy Fund C-Class
March 31, 2007
18.78
(.27)
.38
.11
(.63)
—
(.63)
(.52)
18.26
0.67%
5.97%
2.36%
2.68%▲
192%
213,175
September 30, 2007D
18.26
.24
(.17)
.07
—
—
—
.07
18.33
0.38%
4.34%**
2.39%**
2.58%**
244%
161,788
March 31, 2006
March 31, 2005
19.24
18.25
(.25)
.78
.53
—
—
(.27)
(.72)
(.99)
—
—
—
(.99)
18.25
(5.15)%
6.11%
2.32%
0.53%▲
101%
893,249
—
.53
18.78
2.90%
5.66%
2.33%
(0.22)%▲
179%
533,862
March 31, 2004
20.88
(.29)
(1.35)
(1.64)
—
—
(1.64)
19.24
(7.85)%
6.57%
2.38%
(4.84)%▲
187%
489,918
March 31, 2003
26.16
(.17)
(5.11)
(5.28)
—
—
—
(5.28)
20.88
(20.13)%
6.64%
2.40%
(4.36)%▲
—
60,969
September 30, 2007*D
25.00
High Yield Strategy Fund A-Class
.71
(.36)
.35
—
—
—
.35
25.35
1.40%
1.52%**
1.52%**
6.29%**
597%
7,260
September 30, 2007*D
25.00
.66
(.41)
.25
—
—
—
.25
25.25
1.00%
2.18%**
2.18%**
5.87%**
597%
1,018
High Yield Strategy Fund C-Class
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
Operating
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 Securities
from Operations
Income
Gains
Distributions
Value
PERIOD
Return††
Expenses
Expenses
Expenses§
(Loss)
Rate
omitted)
High Yield Strategy Fund H-Class
September 30, 2007*D
$25.00
$ .72
$ (.38)
$ .34
$
—
$
—
$
—
$
.34
$25.34
1.36%
1.52%**
1.52%**
1.52%**
6.39%**
597%
$
33,490
Inverse High Yield Strategy Fund A-Class
September 30, 2007*D
50.00
(.70)
.88
.18
—
—
—
.18 50.18
-->.18
50.18
0.36%
4.87%**
4.87%**
1.52%**
(2.92)%**
—
2,029
Inverse High Yield Strategy Fund C-Class
September 30, 2007*D
50.00
(2.15)
2.16
.01
—
—
—
.01
50.01 0.02%
-->50.01
0.02%
5.61%**
5.61%**
2.26%**
(9.14)%**
—
1,521
September 30, 2007*D
Inverse High Yield Strategy Fund H-Class
50.00
.30
(.12)
.18
—
—
—
.18
50.18
0.36%
4.87%**
4.87%**
1.52%**
1.25%**
—
2,848
September 30, 2007D
24.13
.36 2.97
-->.36
2.97
3.33
—
—
—
3.33
27.46
13.80%
1.66%**
1.66%**
1.66%**
2.77%**
118%
13,876
Europe 1.25x Strategy Fund A-Class
March 31, 2007
20.06
March 31, 2006
17.14
.18
3.06
3.24
—
(.32)
(.32)
2.92
20.06
19.10%
1.67%
1.66%
1.66%
1.02%
454%
1,378
.54
3.65
4.19
(.12)
—
(.12)
4.07
24.13
20.90%
1.54%
1.54%
1.54%
2.33%
373%
10,892
March 31, 2005
14.98
.05
2.59
2.64
(.47)
March 31, 2004*
14.98
—
—
—
—
—
—
—
14.98
0.00%
0.00%**à
0.00%**à
0.00%**à
0.00%**
—
1
(.01)
(.48)
2.16
17.14
17.56%
1.62%
1.62%
1.62%
0.29%
—
180
September 30, 2007D
22.98
Europe 1.25x Strategy Fund C-Class
March 31, 2007
19.25
.39
3.46
3.85
(.12)
—
(.12)
3.73
22.98
20.01%
2.40%
2.40%
2.40%
1.85%
373%
9,539
.24 2.84
-->.24
2.84
3.08
—
—
—
3.08
26.06
13.40%
2.39%**
2.39%**
2.39%**
1.93%**
118%
14,186
March 31, 2005
14.62
(.09)
2.52
2.43
(.47)
(.01)
(.48)
1.95
16.57
16.55%
2.37%
2.37%
2.37%
(0.57)%
—
5,717
March 31, 2006
16.57
.10
2.90
3.00
—
(.32)
(.32)
2.68
19.25
18.30%
2.42%
2.41%
2.41%
0.59%
454%
8,703
March 31, 2003
15.22
(.10)
(5.38)
(5.48)
—
—
—
(5.48)
9.74
(36.01)%
2.45%
2.45%
2.45%
(0.96)%
—
1,957
March 31, 2004
9.74
(1.18)
6.77
5.59
—
(.71)
(.71)
4.88
14.62
57.29%
2.47%
2.47%
2.47%
(8.31)%
—
1,999
September 30, 2007D
24.14
.36 2.97
-->.36
2.97
3.33
—
—
—
3.33
27.47
13.79%
1.67%**
1.67%**
1.67%**
2.80%**
118%
97,336
Europe 1.25x Strategy Fund H-Class
March 31, 2007
20.06
March 31, 2006
17.13
.22
3.03
3.25
—
(.32)
(.32)
2.93
20.06
19.17%
1.64%
1.63%
1.63%
1.21%
454%
46,066
.59
3.61
4.20
(.12)
—
(.12)
4.08
24.14
20.95%
1.66%
1.66%
1.66%
2.63%
373%
57,887
March 31, 2004
9.88
March 31, 2005
14.98
(1.65)
7.46
5.81
—
(.71)
(.71)
5.10
14.98
58.72%
1.73%
1.73%
1.73%
(11.25)%
—
35,914
.05
2.58
2.63
(.47)
(.01)
(.48)
2.15
17.13
17.49%
1.61%
1.61%
1.61%
0.28%
—
62,957
March 31, 2003
15.30
(.02)
(5.40)
(5.42)
—
—
—
(5.42)
9.88
(35.42)%
1.68%
1.68%
1.68%
(0.13)%
—
4,698
Japan 1.25x Strategy Fund A-Class
March 31, 2007
September 30, 2007D
23.94
.41
(1.41)
(1.00)
—
—
—
(1.00)
22.94
(4.18)%
1.66%**
1.66%**
1.66%**
3.53%**
—
14,205
March 31, 2006
29.20
.74
10.67
11.41
—
—
—
11.41
40.61
39.08%
1.67%
1.66%
1.66%
2.20%
—
3,432
40.61
.98
(1.58)
(.60)
(1.28)
(14.79)
(16.07)
(16.67)
23.94
0.08%
1.64%
1.64%
1.64%
3.39%
—
11,259
March 31, 2005
34.60
.05
(3.96)
March 31, 2004*
34.60
—
—
—
—
—
—
—
34.60
0.00%
0.00%**à
0.00%**à
0.00%**à
0.00%**
—
55
(3.91)
(.56)
(.93)
(1.49)
(5.40)
29.20
(11.31)%
1.62%
1.62%
1.62%
0.15%
—
280
Japan 1.25x Strategy Fund C-Class
September 30, 2007D
22.54
.31
(1.34)
(1.03)
—
—
—
(1.03)
21.51
(4.57)%
2.41%**
2.41%**
2.41%**
2.78%**
—
5,838
March 31, 2006
28.61
.12
10.74
10.86
—
—
—
10.86
39.47
37.96%
2.43%
2.42%
2.42%
1.49%
—
13,082
March 31, 2007
39.47
.80
(1.66)
(.86)
(1.28)
(14.79)
(16.07)
(16.93)
22.54
(0.66)%
2.40%
2.40%
2.40%
2.51%
—
8,243
March 31, 2005
March 31, 2004
18.96
(.80)
16.26
15.46
—
(.24)
(.24)
15.22
34.18
81.72%
2.42%
2.42%
2.42%
(2.85)%
—
5,572
34.18
(.25)
(3.83)
(4.08)
(.56)
(.93)
(1.49)
(5.57)
28.61
(11.96)%
2.38%
2.38%
2.38%
(0.83)%
—
3,381
March 31, 2003†††
27.24
(.18)
(8.10)
(8.28)
—
—
—
(8.28)
18.96
(30.40)%
2.36%
2.36%
2.36%
(0.68)%
—
9
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 Securities
from Operations
Income
Gains
Distributions
Value
PERIOD
Return††
Expenses
Expenses
(Loss)
Rate
omitted)
BEGINNING
Income
Gains (Losses)
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Turnover
Period (000’s
September 30, 2007D
$23.97
$
.42
$
(1.42)
$
(1.00)
$
—
$
—
$
—
$
(1.00)
$22.97
(4.17)%
1.65%**
1.65%**
3.50%**
—
$
18,434
Japan 1.25x Strategy Fund H-Class
March 31, 2006
29.22
.76
10.66
11.42
—
—
—
11.42
40.64
39.08%
1.67%
1.66%
2.19%
—
111,896
March 31, 2007
40.64
1.08
(1.68)
(.60)
(1.28)
(14.79)
(16.07)
(16.67)
23.97
0.08%
1.66%
1.66%
3.21%
—
50,265
March 31, 2004
19.05
(.40)
16.19
15.79
—
(.24)
(.24)
15.55
34.60
83.07%
1.66%
1.66%
1.46%
—
177,760
March 31, 2005
34.60
(.05)
(3.84)
(3.89)
(.56)
(.93)
(1.49)
(5.38)
29.22
(11.25)%
1.63%
1.63%
(0.17)%
—
34,972
March 31, 2003†††
27.27
(.03)
(8.19)
(8.22)
—
—
—
(8.22)
19.05
(30.14)%
1.69%
1.69%
(0.06)%
—
2,683
September 30, 2007D
35.54
Small-Cap Value Fund A-Class
March 31, 2007
33.40
.23
1.94
2.17
—
(.03)
(.03)
2.14
35.54
6.49%
1.51%
1.51%
0.66%
728%
3,929
.10
(4.00)
(3.90)
—
—
—
(3.90)
31.64
(10.97)%
1.52%**
1.52%**
0.56%**
180%
2,695
March 31, 2005*
25.28
(.06)
3.13
3.07
—
(.13)
(.13)
2.94
28.22
12.14%
1.43%**
1.43%**
(0.37)%**
744%
714
March 31, 2006
28.22
(.03)
5.71
5.68
—
(.50)
(.50)
5.18
33.40
20.35%
1.46%
1.46%
(0.11)%
806%
335
September 30, 2007D
Small-Cap Value Fund C-Class
March 31, 2007
32.85
(.05)
1.91
1.86
—
(.03)
(.03)
1.83
34.68
5.65%
2.26%
2.26%
(0.16)%
728%
2,268
34.68
(.05)
(3.87)
(3.92)
—
—
—
(3.92)
30.76
(11.30)%
2.25%**
2.25%**
(0.27)%**
180%
1,021
March 31, 2005
25.59
(.24)
2.79
2.55
—
(.13)
(.13)
2.42
28.01
9.96%
2.21%
2.21%
(0.89)%
744%
12,119
March 31, 2006
28.01
(.18)
5.52
5.34
—
(.50)
(.50)
4.84
32.85
19.29%
2.27%
2.27%
(0.60)%
806%
18,779
March 31, 2004*
25.00
(.05)
.64
.59
—
—
—
.59
25.59
2.36%
2.11%**
2.11%**
(1.68)%**
177%
2,207
September 30, 2007D
35.51
.08
(3.98)
(3.90)
—
—
—
(3.90)
31.61
(10.98)%
1.51%**
1.51%**
0.46%**
180%
4,458
Small-Cap Value Fund H-Class
March 31, 2006
March 31, 2007
28.24
.06
5.58
5.64
—
(.50)
(.50)
5.14
33.38
20.20%
1.50%
1.50%
0.19%
806%
102,448
33.38
.15
2.01
2.16
—
(.03)
(.03)
2.13
35.51
6.46%
1.52%
1.52%
0.46%
728%
10,478
March 31, 2004*
25.00
(.01)
.63
.62
—
—
—
.62
25.62
2.48%
1.41%**
1.41%**
(0.21)%**
177%
19,900
March 31, 2005
25.62
(.01)
2.76
2.75
—
(.13)
(.13)
2.62
28.24
10.73%
1.47%
1.47%
(0.04)%
744%
75,748
September 30, 2007D
36.58
Mid-Cap Value Fund A-Class
March 31, 2007
31.83
.34
4.57
4.91
—
(.16)
(.16)
4.75
36.58
15.45%
1.53%
1.53%
1.00%
625%
4,744
.20
(1.62)
(1.42)
—
—
—
(1.42)
35.16
(3.88)%
1.52%**
1.52%**
1.09%**
77%
3,548
March 31, 2006
27.49
.06
March 31, 2005*
24.58
.11
2.91
3.02
(—)§§
(.11)
(.11)
2.91
27.49
12.29%
1.42%**
1.42%**
0.69%**
731%
312
4.47
4.53
(—)§§
(.19)
(.19)
4.34
31.83
16.51%
1.48%
1.48%
0.21%
558%
1,480
Mid-Cap Value Fund C-Class
March 31, 2007
31.34
.11
4.46
4.57
—
(.16)
(.16)
4.41
35.75
14.61%
2.28%
2.28%
0.33%
625%
8,326
September 30, 2007D
35.75
.10
(1.61)
(1.51)
—
—
—
(1.51)
34.24
(4.22)%
2.26%**
2.26%**
0.55%**
77%
7,006
March 31, 2006
27.29
(.10)
March 31, 2005
25.11
(.07)
2.36
2.29
(—)§§
(.11)
(.11)
2.18
27.29
9.12%
2.21%
2.21%
(0.28)%
731%
8,831
4.34
4.24
(—)§§
(.19)
(.19)
4.05
31.34
15.57%
2.25%
2.25%
(0.35)%
558%
7,270
March 31, 2004*
25.00
(.02)
.13
.11
—
—
—
.11
25.11
0.44%
2.11%**
2.11%**
(0.50)%**
172%
710
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)
Mid-Cap Value Fund H-Class
March 31, 2007
31.82
.46
4.46
4.92
—
(.16)
(.16)
4.76
36.58
15.49%
1.52%
1.39%
625%
76,513
September 30, 2007D
$36.58
$ .15
$ (1.56)
$ (1.41)
$ —
$ —
$ —
$ (1.41)
$35.17
(3.85)%
1.51%**
0.79%**
77%
$
7,965
March 31, 2005
25.13
.21
2.26
2.47
(—)§§
(.11)
(.11)
2.36
27.49
9.83%
1.46%
0.77%
731%
115,660
March 31, 2006
27.49
.07
4.45
4.52
(—)§§
(.19)
(.19)
4.33
31.82
16.47%
1.48%
0.25%
558%
31,340
March 31, 2004*
25.00
.01
.12
.13
—
—
—
.13
25.13
0.52%
1.41%**
0.19%**
172%
18,064
Large-Cap Value Fund A-Class
September 30, 2007D
33.46
.18
(.76)
(.58)
—
—
—
(.58)
32.88
(1.73)%
1.52%**
1.03%**
61%
5,026
March 31, 2006
26.56
.19
2.77
2.96
—
(.40)
(.40)
2.56
29.12
11.20%
1.47%
0.70%
1054%
713
March 31, 2007
29.12
.37
4.33
4.70
(.21)
(.15)
(.36)
4.34
33.46
16.21%
1.50%
1.17%
389%
5,348
March 31, 2005*
24.68
.12
1.81
1.93
(—)§§
(.05)
(.05)
1.88
26.56
7.82%
1.43%**
0.77%**
747%
211
September 30, 2007D
Large-Cap Value Fund C-Class
March 31, 2007
28.67
.09
4.28
4.37
(.21)
(.15)
(.36)
4.01
32.68
15.31%
2.27%
0.29%
389%
21,075
32.68
.01
(.69)
(.68)
—
—
—
(.68)
32.00
(2.08)%
2.25%**
0.05%**
61%
4,186
March 31, 2006
26.38
.04
2.65
2.69
—
(.40)
(.40)
2.29
28.67
10.25%
2.26%
0.14%
1,054%
4,344
March 31, 2004*
25.00
(.02)
(.13)
(.15)
—
—
—
(.15)
24.85
(0.60)%
2.10%**
(0.53)%**
202%
2,612
March 31, 2005
24.85
.01
1.57
1.58
(—)§§
(.05)
(.05)
1.53
26.38
6.35%
2.20%
0.03%
747%
4,636
Large-Cap Value Fund H-Class
March 31, 2007
29.12
.35
4.35
4.70
(.21)
(.15)
(.36)
4.34
33.46
16.21%
1.51%
1.12%
389%
184,082
September 30, 2007D
33.46
.15
(.74)
(.59)
—
—
—
(.59)
32.87
(1.76)%
1.51%**
0.85%**
61%
17,384
March 31, 2006
26.56
March 31, 2005
.23
2.73
2.96
—
(.40)
(.40)
2.56
29.12
11.20%
1.49%
0.82%
1,054%
56,005
March 31, 2004*
25.00
.01
(.14)
(.13)
—
—
—
(.13)
24.87
(0.52)%
1.41%**
0.34%**
202%
8,094
24.87
.16
1.58
1.74
(—)§§
(.05)
(.05)
1.69
26.56
6.99%
1.47%
0.63%
747%
24,974
Small-Cap Growth Fund A-Class
September 30, 2007D
32.61
(.12)
1.45
1.33
—
—
—
1.33
33.94
4.08%
1.53%**
(0.72)%**
431%
3,162
March 31, 2006
27.96
(.18)
5.27
5.09
—
(.80)
(.80)
4.29
32.25
18.41%
1.47%
(0.61)%
1,003%
943
March 31, 2007
32.25
(.29)
.65
.36
—
—
—
.36
32.61
1.12%
1.56%
(0.93)%
623%
1,408
March 31, 2005 *
24.43
(.12)
3.90
3.78
—
(.25)
(.25)
3.53
27.96
15.49%
1.43%**
(0.74)%**
983%
76
Small-Cap Growth Fund C-Class
March 31, 2007
31.82
(.58)
.70
.12
—
—
—
.12
31.94
0.38%
2.32%
(1.83)%
623%
7,570
September 30, 2007D
31.94
(.31)
1.50
1.19
—
—
—
1.19
33.13
3.73%
2.27%**
(1.82)%**
431%
8,759
March 31, 2005
25.33
(.44)
3.14
2.70
—
(.25)
(.25)
2.45
27.78
10.68%
2.21%
(1.58)%
983%
2,710
March 31, 2006
27.78
(.47)
5.31
4.84
—
(.80)
(.80)
4.04
31.82
17.63%
2.27%
(1.57)%
1,003%
5,972
March 31, 2004*
25.00
(.04)
.37
.33
—
—
—
.33
25.33
1.32%
2.08%**
(1.31)%**
117%
2,505
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
$32.62
$
(.17)
$
1.51
Small-Cap Growth Fund H-Class
March 31, 2007
32.27
(.33)
$
1.34
$
—
$
—
$
—
$
1.34 $33.96
-->1.34
$33.96
4.11%
1.52%**
(0.98)%**
431%
$
8,397
March 31, 2006
27.97
(.22)
5.32
5.10
—
(.80)
(.80)
4.30
32.27
18.44%
1.50%
(0.73)%
1,003%
73,489
.68
.35
—
—
—
.35
32.62
1.08%
1.53%
(1.05)%
623%
18,171
March 31, 2004*
25.00
(.02)
.36
.34
—
—
—
.34
25.34
1.36%
1.41%**
(0.85)%**
117%
2,544
March 31, 2005
25.34
(.23)
3.11
2.88
—
(.25)
(.25)
2.63
27.97
11.38%
1.46%
(0.84)%
983%
26,145
September 30, 2007D
30.72
(.15)
1.68
Mid-Cap Growth Fund A-Class
March 31, 2007
31.94
(.08)
.48
.40
—
(1.62)
(1.62)
(1.22)
30.72
1.36%
1.51%
(0.25)%
537%
2,777
1.53
—
—
—
1.53
32.25
4.98%
1.52%**
(0.94)%**
331%
4,564
March 31, 2005*
23.91
(.09)
3.04
2.95
—
(.01)
(.01)
2.94
26.85
12.33%
1.46%**
(0.58)%**
1,211%
553
March 31, 2006
26.85
(.17)
5.39
5.22
—
(.13)
(.13)
5.09
31.94
19.47%
1.48%
(0.60)%
681%
1,530
Mid-Cap Growth Fund C-Class
March 31, 2007
31.47
(.42)
.58
.16
—
(1.62)
(1.62)
(1.46)
30.01
0.60%
2.27%
(1.40)%
537%
5,316
September 30, 2007D
30.01
(.26)
1.65
1.39
—
—
—
1.39
31.40
4.63%
2.26%**
(1.66)%**
331%
5,500
March 31, 2005
25.15
(.37)
1.89
1.52
—
(.01)
(.01)
1.51
26.66
6.04%
2.21%
(1.43)%
1,211%
2,313
March 31, 2006
26.66
(.42)
5.36
4.94
—
(.13)
(.13)
4.81
31.47
18.55%
2.26%
(1.43)%
681%
3,305
March 31, 2004*
25.00
(.05)
.20
.15
—
—
—
.15
25.15
0.60%
2.10%**
(1.50)%**
356%
1,172
September 30, 2007D
30.75
(.16)
1.69
1.53
—
—
—
1.53
32.28
4.98%
1.52%**
(0.98)%**
331%
9,608
Mid-Cap Growth Fund H-Class
March 31, 2006
26.86
(.19)
5.41
5.22
—
(.13)
(.13)
5.09
31.95
19.46%
1.50%
(0.63)%
681%
48,888
March 31, 2007
31.95
(.24)
.66
.42
—
(1.62)
(1.62)
(1.20)
30.75
1.42%
1.52%
(0.80)%
537%
7,715
March 31, 2004*
25.00
(.02)
.19
.17
—
—
—
.17
25.17
0.68%
1.41%**
(0.75)%**
356%
625
March 31, 2005
25.17
(.17)
1.87
1.70
—
(.01)
(.01)
1.69
26.86
6.75%
1.46%
(0.66)%
1,211%
23,733
September 30, 2007D
27.17
(.08)
1.55
1.47
—
—
—
1.47
28.64
5.41%
1.52%**
(0.55)%**
166%
3,724
Large-Cap Growth Fund A-Class
March 31, 2006
24.48
(.07)
March 31, 2007
1.72
1.65
—
(.02)
(.02)
1.63
26.11
6.76%
1.48%
(0.29)%
1,276%
914
26.11
(.13)
1.19
1.06
—
—
—
1.06
27.17
4.06%
1.52%
(0.51)%
1,029%
2,675
March 31, 2005*
23.44
.09
.95
1.04
—
(—)§§
(—)§§
1.04
24.48
4.45%
1.45%**
0.62%**
2,018%
74
September 30, 2007D
26.57
(.15)
1.47
1.32
—
—
—
1.32
27.89
4.97%
2.27%**
(1.17)%**
166%
14,205
Large-Cap Growth Fund C-Class
March 31, 2007
March 31, 2006
24.30
(.26)
1.72
1.46
—
(.02)
(.02)
1.44
25.74
6.03%
2.23%
(1.04)%
1,276%
5,249
25.74
(.37)
1.20
.83
—
—
—
.83
26.57
3.22%
2.28%
(1.44)%
1,029%
3,743
March 31, 2004*
25.00
(.05)
(.77)
(.82)
—
—
—
(.82)
24.18
(3.28)%
2.08%**
(1.25)%**
296%
—
March 31, 2005
24.18
(.01)
.13
.12
—
(—)§§
(—)§§
.12
24.30
0.51%
2.20%
(0.06)%
2,018%
19,703
Large-Cap Growth Fund H-Class
March 31, 2007
26.11
(.14)
1.19
1.05
—
—
—
1.05
27.16
4.02%
1.52%
(0.53)%
1,029%
49,087
September 30, 2007D
27.16
(.09)
1.56
1.47
—
—
—
1.47
28.63
5.41%
1.52%**
(0.62)%**
166%
72,049
March 31, 2005
24.18
.37
(.06)
.31
—
(—)§§
(—)§§
.31
24.49
1.30%
1.47%
1.52%
2,018%
11,762
March 31, 2006
24.49
(.05)
1.69
1.64
—
(.02)
(.02)
1.62
26.11
6.71%
1.49%
(0.19)%
1,276%
32,258
March 31, 2004*
25.00
(—)§§
(.82)
(.82)
—
—
—
(.82)
24.18
(3.28)%
1.41%**
(0.16)%**
296%
793
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 Realized
VALUE,
Net
Unrealized
in Net Asset
from Net
from Net
Increase in
VALUE,
Total
Net
Portfolio
End of
NET ASSET
and
Net Increase
Distributions
Distributions
Net
NET ASSET
Net Assets,
Period Ended
OF PERIOD
Income†
Investments
from Operations
Income
Gains
Distributions
Value
PERIOD
Return††
Expenses
Expenses
Income
Rate
omitted)
BEGINNING
Investment
Gains on
Value Resulting
Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Investment
Turnover
Period (000’s
U.S. Government Money Market Fund Investor Class
March 31, 2007
September 30, 2007D
$1.00
1.00
.04
—
.04
(.04)
—
(.04)
—
1.00
4.26%
0.92%
0.92%
4.20%
—
982,347
$
.02
$
—
$
.02
$
(.02)
$
—
$
(.02)
$
—
$1.00
2.14%
0.92%**
0.92%**
4.24%**
—
$
951,721
March 31, 2006
1.00
.03
—
.03
(.03)
—
(.03)
—
1.00
2.79%
0.88%
0.88%
2.74%
—
975,088
March 31, 2004
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.18%
0.90%
0.90%
0.18%
—
1,057,062
March 31, 2005
1.00
.01
—
.01
(.01)
—
(.01)
—
1.00
0.82%
0.87%
0.87%
0.81%
—
1,196,009
March 31, 2003
1.00
.01
—
.01
(.01)
—
(.01)
—
1.00
0.71%
0.92%
0.92%
0.71%
—
1,218,676
U.S. Government Money Market Fund Advisor Class
March 31, 2007
1.00
.04
—
.04
(.04)
—
(.04)
—
1.00
3.75%
1.42%
1.42%
3.70%
—
204,068
September 30, 2007D
1.00
.02
—
.02
(.02)
—
(.02)
—
1.00
1.89%
1.41%**
1.41%**
3.72%**
—
207,922
March 31, 2006
1.00
.02
—
.02
(.02)
—
(.02)
—
1.00
2.28%
1.39%
1.39%
2.21%
—
151,828
March 31, 2004
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.01%
1.38%
1.08%
0.01%
—
249,599
March 31, 2005
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.43%
1.38%
1.25%
0.39%
—
245,890
March 31, 2003
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.27%
1.41%
1.37%
0.32%
—
187,513
September 30, 2007D
1.00
.02
—
.02
(.02)
—
(.02)
—
1.00
2.02%
1.17%**
1.17%**
3.99%**
—
18,389
U.S. Government Money Market Fund A-Class
March 31, 2006
1.00
.03
—
.03
(.03)
—
(.03)
—
1.00
2.51%
1.15%
1.15%
2.66%
—
14,324
March 31, 2007
1.00
.04
—
.04
(.04)
—
(.04)
—
1.00
4.01%
1.17%
1.17%
3.97%
—
18,779
March 31, 2004*
1.00
—
—
—
—
—
—
—
1.00
0.00%
0.00%**à
0.00%**à
0.00%**
—
1
March 31, 2005
1.00
.01
—
.01
(.01)
—
(.01)
—
1.00
0.59%
1.10%
1.10%
0.93%
—
7,335
September 30, 2007D
1.00
.02
—
.02
(.02)
—
(.02)
—
1.00
1.64%
1.92%**
1.92%**
3.25%**
—
90,130
U.S. Government Money Market Fund C-Class
March 31, 2006
1.00
.02
—
.02
(.02)
—
(.02)
—
1.00
1.76%
1.89%
1.89%
1.72%
—
131,045
March 31, 2007
1.00
.03
—
.03
(.03)
—
(.03)
—
1.00
3.24%
1.92%
1.92%
3.20%
—
120,415
March 31, 2004
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.01%
1.90%
1.08%
0.01%
—
131,704
March 31, 2005
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.19%
1.87%
1.51%
0.19%
—
155,668
March 31, 2003
1.00
—§§
—
—§§
(—)§§
—
(—)§§
—
1.00
0.08%
1.91%
1.50%
0.06%
—
201,745
* Since the commencement of operations:
February 20, 2004 — Inverse Mid-Cap Strategy Fund C-Class and H-Class, Inverse Russell 2000® Strategy Fund C-Class and H-Class, Small-Cap Value Fund C-Class and H-Class, Mid-Cap Value C-Class and H-Class,
August 1, 2003 — Inverse OTC Strategy Fund Advisor Class, Government Long Bond 1.2x Strategy Fund Advisor Class, and Inverse Government Long Bond Stategy Fund Advisor Class;
Large-Cap Value Fund C-Class and H-Class, Small-Cap Growth Fund C-Class and H-Class, Mid-Cap Growth Fund C-Class and H-Class, and Large-Cap Growth Fund C-Class and H-Class;
Russell 2000® 1.5x Strategy Fund A-Class, Inverse Russell 2000® Strategy Fund A-Class, Government Long Bond 1.2x Strategy Fund A-Class, Inverse Goverment Long Bond Strategy Fund A-Class, Europe 1.25x Strategy Fund
March 31, 2004 — Nova Fund A-Class, Inverse S&P 500 Strategy Fund A-Class, OTC Fund A-Class, Inverse OTC Strategy Fund A-Class, Mid-Cap 1.5x Strategy Fund A-Class, Inverse Mid-Cap Strategy Fund A-Class,
September 1, 2004 — Small-Cap Value Fund A-Class, Mid-Cap Value Fund A-Class, Large-Cap Value Fund A-Class, Small-Cap Growth Fund A-Class, Mid-Cap Growth Fund A-Class, and Large-Cap Growth Fund A-Class;
A-Class, Japan 1.25x Strategy Fund A-Class, and U.S. Goverment Money Market Fund A-Class;
May 31, 2006 — S&P 500 Fund A-Class, C-Class and H-Class and Russell 2000® Fund A-Class, C-Class and H-Class;
** Annualized
April 16, 2007 — High Yield Strategy Fund A-Class, C-Class and H-Class and Inverse High Yield Strategy Fund A-Class, C-Class and H-Class.
† Calculated using the average daily shares outstanding for the year.
††† Japan 1.25x Strategy Fund — Per Share amounts for the periods ended March 31, 2002 through March 31, 2003 have been restated to reflect a 1:3 reverse stock split effective April 21, 2003.
†† Total investment return does not reflect the impact of any applicable sales charges and has not been annualized.
à Expense ratios for the period ended March 31, 2004 are calculated for one day only and are not indicative of future class performance.
Inverse S&P 500 Strategy Fund — Per share amounts for the periods ended March 31, 2003 through March 31, 2007 have been restated to reflect a 1:5 reverse stock split effective April 23, 2007.
▲ Ratios represent combined net investment income of the Master Portfolio and Feeder Fund. The ratios for the periods preceding March 31, 2007 have been revised to reflect the income and expenses of the former Master
■ Ratios to average net assets include expenses of the corresponding former Master Portfolio; portfolio turnover rate corresponds to the former Master Portfolio—See Note 10.
Portfolios. This revision has no net effect on the Fund’s net asset value, per share value, or total increase (decrease) in net assets from operations during any period—See Note 10.
§ Operating Expenses exclude interest expense from securities sold short and swap expense.
D Unaudited
§§ Less than $.01 per share.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1.
Organization and Significant Accounting Policies
B. All equity securities for the morning NAV are valued at
Organization
the current sales price as of 10:45 a.m. on the valuation
The Rydex Series Funds (the “Trust”) is registered with
date. Equity securities listed on an exchange (NYSE or
the SEC under the Investment Company Act of 1940 (the
American Stock Exchange) are valued at the last quoted
4:00 p.m. on the valuation date for the afternoon NAV.
“1940 Act”) as a non-diversified, open-ended investment
sales price as of the close of business on the NYSE, usually
company, and is authorized to issue an unlimited number
valued at the Nasdaq Official Closing Price, usually as of
of no par value shares. The Trust offers five separate
Equity securities listed on the Nasdaq market system are
classes of shares, Investor Class Shares, Advisor Class
Shares, A-Class Shares, C-Class Shares, and H-Class
4:00 p.m. on the valuation date. Listed options held by
Shares. C-Class Shares have a 1% contingent deferred
the Trust are valued at the their last bid price for twice
sales charge (“CDSC”) if shares are redeemed within 12
a day pricing or the Official Settlement Price listed by
months of purchase. Sales of shares of each Class are
the exchange, usually as of 4:00 p.m. Over-the-Counter
made without a front-end sales charge at the net asset
options held by the Trust are valued using the average
The value of futures contracts purchased and sold by
value per share, with the exception of A-Class Shares.
bid price obtained from one or more security dealers.
A-Class Shares are sold at net asset value, plus the
applicable front-end sales charge. The sales charge
the Trust is accounted for using the unrealized gain or
varies depending on the amount purchased, but will not
loss on the contracts that is determined by marking the
exceed 4.75%. A-Class Share purchases of $1 million or
contracts to their current realized settlement prices.
more are exempt from the front-end sales charge, but
Financial futures contracts are valued as of the spot price
have a 1% CDSC if shares are redeemed within 18
at 10:45 a.m. on the valuation date for the morning
months of purchase.
pricing cycle. Financial futures contracts are valued at the
last quoted sales price, usually as of 4:00 p.m. on the
At September 30, 2007, the Trust consisted of fifty-three
valuation date for the afternoon NAV cycle. In the event
separate Funds: twenty-two Benchmark Funds, one Money
Market Fund, ten Alternative Strategy Funds, seventeen
that the exchange for a specific futures contract closes
earlier than 4:00 p.m., the futures contract is valued at
Sector Funds and three Essential Portfolio Funds. This
the Official Settlement Price of the exchange. However,
report covers the twenty-two Benchmark Funds and the
the underlying securities from which the futures contract
Money Market Fund (the “Funds”), while the Sector
Funds, the Alternative Strategy Funds, and the Essential
value is derived are monitored until 4:00 p.m. to
Portfolio Funds are contained in separate reports.
determine if fair valuation would provide a more accurate
valuation. Short-term securities, if any, are valued at
Rydex Investments provides advisory, transfer agent
amortized cost, which approximates market value.
and administrative services, and accounting services to
Debt securities with a maturity greater than 60 days are
the Trust. Rydex Distributors, Inc. (the “Distributor”)
valued at the last traded fill price at the close of the
acts as principal underwriter for the Trust. Both Rydex
Investments and the Distributor are affiliated entities.
Funds’ pricing cycle, unless no trades were executed. If
there are no trades, a security is valued at the reported
Significant Accounting Policies
bid price, at the close of the Funds’ pricing cycle, usually
The following significant accounting policies are in
4:00 p.m.
conformity with U.S. generally accepted accounting
Structured notes are valued in accordance with the terms
principles and are consistently followed by the Trust.
of their agreement at the value of the underlying index
All time references are based on Eastern Time. The
close, usually 4:00 p.m., adjusted for any interest accruals
information contained in these notes may not apply to
and financing charges. If the securities comprising the
every Fund in the Trust.
underlying index cease trading before a Fund’s close of
A. The Trust calculates a NAV twice each business day,
business, the index will be fair valued with the use of an
first in the morning and again in the afternoon for the
appropriate market indicator.
Russell 2000® Fund and the S&P 500 Fund. All other
The value of domestic equity index and credit default
Funds in the Trust will price at the afternoon NAV. The
swap agreements entered into by a Fund is accounted
morning NAV is calculated at 10:45 a.m., and the
for using the unrealized gain or loss on the agreements.
afternoon NAV is calculated at the close of the New York
This is determined for the morning pricing cycle by
Stock Exchange (“NYSE”), usually 4:00 p.m. The NAV is
either marking the agreements to the first 10:45 a.m. tick
calculated using the current market value of each Fund’s
of the relevant index or, if there is a morning trade, to
total assets as of the respective time of calculation. These
the “fill”. Likewise for the afternoon pricing cycle, the
financial statements are based on the September 30,
agreements are marked at the close of the NYSE, usually
2007 afternoon NAV.
4:00 p.m., to the relevant index or, if there is an
afternoon trade, to the “fill”. The swap’s market values
112
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
are then adjusted to include dividends accrued,
wash sales and post-October losses and regulated
financing charges and/or interest associated with the
futures contracts and options. Net investment income
swap agreements.
and loss, net realized gains and losses, and net assets
The value of foreign equity index and currency index
are not affected by these differences.
swap agreements entered into by a Fund is accounted
E. When a Fund engages in a short sale of an equity or
for using the unrealized gain or loss on the agreements
fixed income security, an amount equal to the proceeds
that is determined by marking the agreements to the
is reflected as an asset and an equivalent liability. The
price at which orders are being filled at the close of the
amount of the liability is subsequently marked-to-market
NYSE, usually 4:00 p.m. In the event that no order is
to reflect the market value of the short sale. The Fund
filled at 4:00 p.m., the security dealer provides a fair
maintains a segregated account of cash and/or securities
value quote at which the swap agreement is valued. The
as collateral for short sales. The Fund is exposed to
swap’s market value is then adjusted to include
market risk based on the amount, if any, that the market
dividends accrued, financing charges and/or interest
value of the security exceeds the market value of the
associated with the swap agreements.
securities in the segregated account. Fees, if any, paid to
Investments, including structured notes, for which
brokers to borrow securities in connection with short
market quotations are not readily available, are fair
sales are considered part of the cost of short sale
dividend rate of the equity or coupon rate of the
valued as determined in good faith by Rydex
transactions. In addition, the Fund must pay out the
Investments under direction of the Board of Trustees
using methods established or ratified by the Board of
treasury obligation to the lender and records this as an
Trustees. These methods include, but are not limited to:
expense. Short dividends or interest expense is a cost
(i) general information as to how these securities and
associated with the investment objective of short sales
assets trade; (ii) in connection with futures contracts and
transactions, rather than an operational cost associated
options thereupon, and other derivative investments,
with the day-to-day management of any mutual fund.
information as to how (a) these contracts and other
F. Upon the purchase of an option by a Fund, the
derivative investments trade in the futures or other
premium paid is recorded as an investment, the value of
derivative markets, respectively, and (b) the securities
which is marked-to-market daily. When a purchased
underlying these contracts and other derivative
option expires, that Fund will realize a loss in the
investments trade in the cash market; and (iii) other
amount of the cost of the option. When a Fund enters
information and considerations, including current values
into a closing sale transaction, that Fund will realize a
in related markets.
gain or loss depending on whether the proceeds from
C. Securities transactions are recorded on the trade date
the closing sale transaction are greater or less than the
for financial reporting purposes. Realized gains and
cost of the option. When a Fund exercises a put option,
losses from securities transactions are recorded using
that Fund will realize a gain or loss from the sale of the
the identified cost basis. Proceeds from lawsuits related
underlying security and the proceeds from such sale will
to investment holdings are recorded as realized gains in
be decreased by the premium originally paid. When a
the respective Fund. Dividend income is recorded on the
Fund exercises a call option, the cost of the security
ex-dividend date, net of applicable taxes withheld by
purchased by that Fund upon exercise will be increased
foreign countries. Interest income, including amortization
by the premium originally paid. When a Fund writes
received is entered in that Fund’s accounting records as
of premiums and accretion of discount, is accrued on a
(sells) an option, an amount equal to the premium
daily basis.
D. Net investment income is computed and dividends
an asset and equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the
are declared daily in the Government Long Bond 1.2x
current value of the option written. When a written
Strategy Fund and the U.S. Government Money Market
option expires, or if a Fund enters into a closing
Fund. Income dividends in these Funds are accrued
purchase transaction, that Fund realizes a gain (or loss if
daily. Dividends are reinvested in additional shares
the cost of a closing purchase transaction exceeds the
unless shareholders request payment in cash.
premium received when the option was sold).
G. The Trust may enter into stock and bond index
Distributions of net investment income in the remaining
Funds and distributions of net realized capital gains in all
Funds are recorded on the ex-dividend date and are
futures contracts and options on such futures contracts.
determined in accordance with income tax regulations
Futures contracts are contracts for delayed delivery of
which may differ from U.S. generally accepted
securities at a specified future delivery date and at a
accounting principles. These differences are primarily
specific price. Upon entering into a contract, a Fund
due to differing treatments for items such as deferral of
deposits and maintains as collateral such initial margin as
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
113
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
required by the exchange on which the transaction is
maturity date. In addition, the contract may require
effected. Pursuant to the contract, the Fund agrees to
periodic interest payments. Structured notes are used to
receive from or pay to the broker an amount of cash
obtain exposure to a market without owning or taking
equal to the daily fluctuation in value of the contract.
physical custody of securities or commodities. Fluctuations
Such receipts or payments are known as variation margin
in value of the structured notes are recorded as unrealized
and are recorded by the Fund as unrealized gains or
gains and losses in the accompanying financial statements.
losses. When the contract is closed, the Fund records a
Coupon payments are recorded as income while net
realized gain or loss equal to the difference between the
payments are recorded as net realized gains or losses.
value of the contract at the time it was opened and the
J. Investment securities and other assets and liabilities
value at the time it was closed.
denominated in foreign currencies are translated into
H. The Trust may enter into domestic equity index and
U.S. dollar amounts at the date of valuation. Purchases
domestic currency index swap agreements, which are
and sales of investment securities and income and
over-the-counter contracts in which one party agrees to
expense items denominated in foreign currencies are
make periodic payments based on the change in market
translated into U.S. dollar amounts on the respective
value of a specified equity security, basket of equity
dates of such transactions. The Trust does not isolate
securities, equity index, or domestic currency index, in
that portion of the results of operations resulting from
return for periodic payments based on a fixed or variable
changes in foreign exchange rates on investments from
interest rate or the change in market value of a different
the fluctuations arising from changes in market prices of
equity security, basket of equity securities, equity index,
securities held. Such fluctuations are included with the
or domestic currency index. Swap agreements are used
net realized and unrealized gain and loss from
to obtain exposure to an equity or market without
investments.
owning or taking physical custody of securities. The swap
Reported net realized foreign exchange gains or losses
agreements are marked-to-market daily based upon
arise from sales of foreign currencies and currency gains
quotations from market makers and the change, if any, is
recorded as unrealized gain or loss. Payments received
or losses realized between the trade and settlement
dates on investment transactions. Net unrealized
or made as a result of the swap agreement or
exchange gains and losses arise from changes in the fair
termination of the agreement are recognized as realized
values of assets and liabilities other than investments in
gains or losses.
securities at the fiscal period end, resulting from changes
The Trust may enter into credit default swap agreements
in exchange rates.
where one party, the protection buyer, makes an upfront
K. The Trust may enter into forward currency contracts
or periodic payments to a counterparty, the protection
primarily to hedge against foreign currency exchange
seller, in exchange for the right to receive a contingent
rate risks on its non-U.S. dollar denominated investment
payment. The maximum amount of the payment may
equal the notional amount, at par, of the underlying index
securities. When entering into a forward currency
contract, a Fund agrees to receive or deliver a fixed
or security as a result of a related credit event. Upfront
quantity of foreign currency for an agreed-upon price on
payments received or made by a Fund, are amortized
an agreed future date. These contracts are valued daily
over the expected life of the agreement. Periodic
payments received or paid by a Fund are recorded as
and the corresponding unrealized gain or loss on the
contracts, as measured by the difference between the
realized gains or losses. The credit default contracts are
forward foreign exchange rates at the dates of entry into
marked-to-market daily based upon quotations from
the contracts and the forward rates at the reporting
market makers and the change, if any, is recorded as
date, is included in the Statement of Assets and
unrealized gain or loss. Payments received or made as a
Liabilities. Realized and unrealized gains and losses are
result of a credit event or termination of the contract are
included in the Statement of Operations.
recognized, net of a proportional amount of the upfront
payment, as realized gains or losses.
L. The Funds may also purchase American Depository
Receipts, U.S. Government securities, and enter into
I. The Trust may invest in structured notes, which are
repurchase agreements.
over-the-counter contracts linked to the performance of
an underlying benchmark such as interest rates, equity
M. The Funds may leave cash overnight in their cash
markets, equity indices, commodities indices, corporate
account with the custodian, U.S. Bank. Periodically, a
credits or foreign exchange markets. A structured note is
Fund may have cash due to the custodian bank as an
a type of bond in which an issuer borrows money from
overdraft balance. A fee is incurred on this overdraft,
investors and pays back the principal, adjusted for
calculated by multiplying the overdraft by a rate based
performance of the underlying benchmark, at a specified
on the federal funds rate. Segregated cash with the
broker is held as collateral for investments in derivative
114
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
instruments such as futures contracts and index swap
Conversely, if the security increases in price during the
agreements.
period, that Fund will realize a loss on the transaction.
N. Certain U.S. Government and Agency Obligations are
The risk of such price increases is the principal risk of
traded on a discount basis; the interest rates shown on
engaging in short sales.
the Schedules of Investments reflect the discount rates
The risk associated with purchasing options is limited to
paid at the time of purchase by the Funds. Other
the premium originally paid. The risk in writing a covered
securities bear interest at the rates shown, payable at
call option is that a Fund may forego the opportunity for
fixed dates through maturity. The Funds may also
profit if the market price of the underlying security
purchase American Depository Receipts, U.S.
increases and the option is exercised. The risk in writing
Government securities, and enter into repurchase
a covered put option is that a Fund may incur a loss if
agreements.
the market price of the underlying security decreases
O. Interest and dividend income, most expenses, all
and the option is exercised. In addition, there is the risk
realized gains and losses, and all unrealized gains and
that a Fund may not be able to enter into a closing
losses are allocated to the Classes based upon the value
transaction because of an illiquid secondary market or,
of the outstanding shares in each Class. Certain costs,
for over-the-counter options, because of the
such as distribution fees relating to A-Class Shares and
counterparty’s inability to perform.
H-Class Shares and service and distribution fees related
There are several risks in connection with the use of
to Advisor Class Shares and C-Class Shares, are charged
futures contracts. Risks may be caused by an imperfect
directly to specific Classes. In addition, certain expenses
correlation between movements in the price of the
have been allocated to the individual Funds in the Trust
instruments and the price of the underlying securities. In
on a pro rata basis upon the respective aggregate net
addition, there is the risk that a Fund may not be able to
assets of each Fund included in the Trust.
enter into a closing transaction because of an illiquid
P. The preparation of financial statements in conformity
secondary market.
with U.S. generally accepted accounting principles
There are several risks associated with the use of
requires management to make estimates and
structured notes. Structured securities are leveraged,
assumptions that affect the reported amount of assets
thereby providing an exposure to the underlying
and liabilities and disclosure of contingent assets and
benchmark of three times the face amount and
liabilities at the date of the financial statements and the
increasing the volatility of each note relative to the
reported amounts of revenues and expenses during the
change in the underlying linked financial instrument. A
reporting period. Actual results could differ from these
highly liquid secondary market may not exist for the
estimates.
structured notes a Fund invests in, which may make it
at an acceptable price or to accurately value them. In
2.
Financial Instruments
difficult for that Fund to sell the structured notes it holds
As part of its investment strategy, the Trust may utilize
addition, structured notes are subject to the risk that the
short sales and a variety of derivative instruments,
including options, futures, options on futures, structured
counterparty to the instrument, or issuer, might not pay
notes, and swap agreements. These investments involve,
interest when due or repay principal at maturity of the
obligation. Although the Trust will not invest in any
to varying degrees, elements of market risk and risks in
structured notes unless Rydex Investments believes that
excess of the amounts recognized in the Statements of
Assets and Liabilities.
the issuer is creditworthy, a Fund does bear the risk of
loss of the amount expected to be received in the event
Throughout the normal course of business, the Funds
of the default or bankruptcy of the issuer.
enter into contracts that contain a variety of
representations and warranties which provide general
There are several risks associated with the use of swap
agreements that are different from those associated with
indemnifications. The Funds’ maximum exposure under
these arrangements is unknown, as this would involve
ordinary portfolio securities transactions. Swap
agreements may be considered to be illiquid. Although
future claims that may be made against the Funds
and/or their affiliates that have not yet occurred.
the Trust will not enter into any swap agreement unless
However, based on experience, the Funds expect the
Rydex Investments believes that the other party to the
risk of loss to be remote.
transaction is creditworthy, the Funds bear the risk of
loss of the amount expected to be received under a swap
Short sales are transactions in which a Fund sells an
agreement in the event of the default or bankruptcy of
equity or fixed income security it does not own. If the
the agreement counterparty.
security sold short decreases in price between the time
There are several risks associated with credit default
the Fund sells the security and closes its short position,
swaps. Credit default swaps involve the exchange of a
that Fund will realize a gain on the transaction.
fixed-rate premium for protection against the loss in
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
115
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
value of an underlying debt instrument in the event of a
and the U.S. Government Money Market Fund; and
defined credit event (such as payment default or
0.25% of the average daily net assets of the remaining
bankruptcy). Under the terms of the swap, one party acts
Funds covered in this report.
as a “guarantor,” receiving a periodic payment that is a
Rydex Investments also provides accounting services to
fixed percentage applied to a notional principal amount.
In return, the party agrees to purchase the notional
the Trust whose fee is calculated at an annualized rate of
0.10% on the first $250 million of the average daily net
amount of the underlying instrument, at par, if a credit
event occurs during the term of the swap. A Fund may
assets, 0.075% on the next $250 million of the average
enter into credit default swaps in which that Fund or its
daily net assets, 0.05% on the next $250 million of the
counterparty acts as guarantor. By acting as the
average daily net assets, and 0.03% on the average daily
guarantor of a swap, that Fund assumes the market and
net assets over $750 million of each Fund.
credit risk of the underlying instrument, including
Rydex Investments engages external service providers to
liquidity and loss of value.
perform other necessary services to the Trust, such as
In conjunction with the use of short sales, options,
accounting and auditing services, legal services, printing
futures, options on futures, and swap agreements, the
and mailing, etc., on a pass-through basis. Such
Funds are required to maintain collateral in various
expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets. Organizational
forms. The Funds use, where appropriate, depending on
and setup costs for new Funds are paid by the Trust.
The Trust has adopted a Distribution and Shareholder
the financial instrument utilized and the broker involved,
margin deposits at the broker, cash and/or securities
segregated at the custodian bank, discount notes, or the
Services Plan applicable to Advisor Class Shares and a
repurchase agreements allocated to each Fund.
Distribution Plan applicable to A-Class Shares and H-
The risks inherent in the use of short sales, options,
Class Shares for which the Distributor and other firms
futures contracts, options on futures contracts, structured
that provide distribution and/or shareholder services
notes, and swap agreements, include i) adverse changes
(“Service Providers”) may receive compensation. If a
Service Provider provides distribution services, the Trust
in the value of such instruments; ii) imperfect correlation
will pay distribution fees to the Distributor at an annual
between the price of the instruments and movements in
the price of the underlying securities, indices, or futures
rate not to exceed 0.25% of average daily net assets,
pursuant to Rule 12b-1 of the 1940 Act. The Distributor,
contracts; iii) the possible absence of a liquid secondary
market for any particular instrument at any time; and iv)
in turn, will pay the Service Provider out of its fees. The
the potential of counterparty default. The Trust has
Distributor may, at its discretion, retain a portion of such
established strict counterparty credit guidelines and
payments to compensate itself for distribution services.
enters into transactions only with financial institutions of
With regard to Advisor Class Shares only, if a Service
Provider provides shareholders services, the Distributor
investment grade or better.
will receive shareholder servicing fees from the Trust at
3.
Fees And Other Transactions With Affiliates
an annual rate not to exceed 0.25% of average daily net
Under the terms of an investment advisory contract, the
assets. The Distributor, in turn, will pay the Service
Trust pays Rydex Investments investment advisory fees
Provider out of its fees.
calculated at an annualized rate of 0.50% of the average
The Trust has adopted a separate Distribution and
daily net assets of the Government Long Bond 1.2x
Strategy Fund and the U.S. Government Money Market
Shareholder Services Plan applicable to its C-Class
Shares that allows the Funds to pay annual distribution
Fund; 0.75% of the average daily net assets of the Nova
and service fees of 1.00% of the Funds’ C-Class Shares
Fund, S&P 500 Fund, OTC Fund, the Russell 2000® Fund,
average daily net assets. The annual 0.25% service fee
the Small-Cap Value Fund, the Mid-Cap Value Fund, the
Large-Cap Value Fund, the Small-Cap Growth Fund, the
compensates the shareholder’s financial advisor for
providing on-going services to the shareholder. The
Mid-Cap Growth Fund, and the Large-Cap Growth Fund;
and 0.90% of the average daily net assets of the
annual 0.75% distribution fee reimburses the Distributor
remaining Funds covered in this report.
for paying the shareholder’s financial advisor an ongoing
sales commission. The Distributor advances the first
Rydex Investments provides transfer agent and
year’s service and distribution fees to the Financial
administrative services to the Funds for fees calculated
Advisor. The Distributor retains the service and
at an annualized rate of 0.20% of the average daily net
distribution fees on accounts with no authorized dealer
assets of the Government Long Bond 1.2x Strategy Fund
of record.
116
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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
During the period ended September 30, 2007, the Distributor retained sales charges of $370,341 relating to sales of
A-Class Shares of the Trust.
Certain officers and trustees of the Trust are also officers of Rydex Investments.
4.
Federal Income Tax Information
The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated
investment companies and will distribute substantially all net investment income and capital gains to shareholders.
Therefore, no Federal income tax provision has been recorded.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ
from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for
derivatives, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses,
and excise tax regulations.
Permanent book and tax basis differences, if any, will result in reclassifications. This includes reclasses due to net operating
losses, non-deductible expenses, differences in the treatment of certain investments, and the utilization of earnings and
profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax
purposes. These reclassifications have no effect on net assets or net asset values per share.
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
Tax
Tax
Net
Fund
Cost
Gain
Loss
Gain (Loss)
Unrealized
Unrealized
Unrealized
S&P 500 Fund
Nova Fund
$187,161,704
$
38,321,525
$(2,592,406)
$
35,729,119
Inverse S&P 500 Strategy Fund
306,726,506
—
(11,215)
(11,215)
26,503,921
1,291,862
(203,358)
1,088,504
OTC Fund
613,661,031
Inverse OTC Strategy Fund
95,853,364
—
(3,405)
(3,405)
368,744,706
(5,932,135)
362,812,571
Inverse Mid-Cap Strategy Fund
13,438,350
—
—
—
Mid-Cap 1.5x Strategy Fund
61,323,060
3,368,915
(800,348)
2,568,567
Russell 2000® 1.5x Strategy Fund
71,005,432
6,159,806
(1,130,451)
5,029,355
Russell 2000® Fund
Inverse Russell 2000® Strategy Fund
67,659,029
8,448,080
347,466
—
(104,639)
242,827
Government Long Bond 1.2x Strategy Fund
62,614,127
1,790,147
—
—
1,790,147
—
High Yield Strategy Fund
42,320,857
—
—
—
Inverse Government Long Bond Strategy Fund
578,948,614
—
(2,492,672)
(2,492,672)
Europe 1.25x Strategy Fund
128,492,589
7,377,974
(30,970)
7,347,004
Inverse High Yield Strategy Fund
6,012,136
—
—
—
Small-Cap Value Fund
9,113,053
1,779,505
(436,385)
1,343,120
Japan 1.25x Strategy Fund
34,983,552
—
—
—
Large-Cap Value Fund
25,600,602
5,965,806
(454,793)
5,511,013
Mid-Cap Value Fund
19,332,697
3,623,365
(333,130)
3,290,235
Mid-Cap Growth Fund
22,487,088
2,285,257
(226,560)
2,058,697
Small-Cap Growth Fund
23,333,541
2,963,093
(100,799)
2,862,294
U.S. Government Money Market Fund
1,353,929,167
—
—
—
Large-Cap Growth Fund
101,363,826
6,211,032
(1,457,812)
4,753,220
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
117
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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
Mizuho Financial Group, Inc.
Lehman Brothers Holdings, Inc.
3.96% due 10/01/07
3.90% due 10/01/07
$850,000,000
521,019,159
$
850,000,000
521,019,159
$
850,280,500
521,188,491
Credit Suisse Group
Morgan Stanley
3.80% due 10/01/07
3.95% due 10/01/07
160,971,201
160,971,201
161,024,187
100,000,000
100,000,000
100,031,667
$1,631,990,360
$1,632,524,845
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 Notes
U.S. Treasury Bills
09/15/07 – 11/15/14
10/04/07 – 04/27/08
2.63% – 6.00%
-->2.63% – 6.00%
0.00%
$821,412,000
$
458,425,000
840,862,329
TIP Notes
01/15/10 – 01/15/14
1.88% – 4.25%
238,718,000
457,589,357
281,318,679
U.S. Treasury Bonds
TIP Bonds
01/15/25 – 04/15/29
05/15/16 – 05/15/37
5.00% – 8.88%
2.38% – 3.88%
21,420,000
43,298,000
52,816,351
31,858,301
$1,664,445,017
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.
118
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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:
Nova
Inverse
Inverse OTC
Mid-Cap
Inverse
Fund
Fund
Strategy Fund
Fund
Fund
Strategy Fund
Strategy Fund
S&P 500
S&P 500
OTC
Strategy
1.5x
Mid-Cap
Purchases
$
96,387,571
$
9,348,359
$
—
$
99,251,647
$
—
$
48,655,266
$
—
Sales
$119,194,290
$
6,143,775
$
—
$133,451,721
$
—
$
53,149,217
$
—
Russell
Government
Inverse
Russell
Inverse
Long Bond
Government
Inverse
Strategy Fund
Fund
Strategy Fund
Fund
Strategy Fund
Strategy Fund
Strategy Fund
2000® 1.5x
2000®
Russell 2000®
1.2x Strategy
Long Bond
High Yield
High Yield
Purchases
$
Sales
58,288,351
$
13,448,708
$
—
$352,715,662
$633,856,129
$
4,953,125
$
—
$
62,037,820
$
16,492,258
$
—
$370,400,369
$559,713,202
$
5,013,281
$
—
1.25x
1.25x
Value
Value
Value
Growth
Growth
Europe
Japan
Small-Cap
Mid-Cap
Large-Cap
Small-Cap
Mid-Cap
Strategy Fund
Strategy Fund
Fund
Fund
Fund
Fund
Fund
Purchases
Sales
$
$100,678,887
57,717,878
$
$
—
—
$32,127,444
$25,245,567
$107,089,469
$
36,369,493
$264,010,517
$
77,503,043
$127,377,280
$119,076,949
$ 101,404,567
$
97,643,661
Large-Cap
Government
U.S.
Fund
Growth
Fund
Money Market
Purchases
Sales
$148,109,297
$
—
$115,090,242
$
—
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
119
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,
2007†
March 31,
2007
Nova Fund
Advisor Class
1,346,778
6,705,280
—
138,958
(1,504,875)
(7,084,947)
(158,097)
(240,709)
Investor Class
5,051,663
11,867,719
—
298,415
(5,308,327)
(13,343,942)
(256,664)
(1,177,808)
C-Class
652,002
2,110,539
—
98,808
(755,505)
(2,554,688)
(103,503)
(345,341)
A-Class
199,777
621,498
—
24,462
(314,583)
(1,172,693)
(114,806)
(526,733)
A-Class
409,692
169,249*
—
959*
(345,916)
(94,678)*
63,776 75,530*
-->63,776
75,530*
S&P 500 Fund
H-Class
2,437,656
3,546,100*
—
13,010*
(2,019,503)
(3,325,681)*
418,153
233,429*
C-Class
718,303
944,164*
—
557*
(720,299)
(872,137)*
(1,996)
72,584*
Inverse S&P 500 Strategy Fund
Advisor Class
807,199
3,179,955††
—
17,354††
(3,555,945)
(3,741,419)††
(2,748,746)
(544,110)††
Investor Class
7,308,251
20,065,776††
—
186,994††
(39,243,778)
(20,691,053)††
(31,935,527)
(438,283)††
C-Class
936,791
1,822,508††
—
35,280††
(6,036,613)
(1,679,518)††
(5,099,822)
178,270††
A-Class
340,761
732,639††
—
9,997††
(1,633,120)
(658,574)††
(1,292,359)
84,062††
Investor Class
29,910,960
61,435,597
—
—
(28,603,583)
(86,227,327)
1,307,377
(24,791,730)
OTC Fund
A-Class
550,513
635,953
—
—
(257,220)
(538,711)
293,293 97,242
-->293,293
97,242
Advisor Class
5,273,700
20,016,807
—
—
(3,881,224)
(21,740,573)
1,392,476
(1,723,766)
C-Class
3,113,890
5,697,342
—
—
(2,663,266)
(6,530,411)
450,624 (833,069)
-->450,624
(833,069)
Investor Class
9,430,091
26,146,510
—
108,463
(10,365,601)
(28,021,658)
(935,510)
(1,766,685)
Inverse OTC Strategy Fund
A-Class
84,004
872,478
—
3,314
(159,648)
(782,660)
(75,644)
93,132
Advisor Class
377,884
2,935,947
—
5,689
(758,766)
(2,887,360)
(380,882)
54,276
C-Class
792,156
Mid-Cap 1.5x Strategy Fund
2,532,572
—
19,664
(1,040,432)
(2,328,082)
(248,276)
224,154
C-Class
355,057
1,400,225
—
16,998
(413,191)
(1,730,574)
(58,134)
(313,351)
A-Class
96,497
186,349
—
3,369
(107,056)
(245,458)
(10,559)
(55,740)
Inverse Mid-Cap Strategy Fund
H-Class
5,099,778
10,384,583
—
26,915
(4,734,556)
(11,078,701)
365,222
(667,203)
A-Class
C-Class
460,571
631,150
—
2,240
(445,759)
(640,536)
14,812
(7,146)
12,120
90,536
—
521
(5,223)
(81,271)
6,897 9,786
-->6,897
9,786
H-Class
783,436
5,765,039
—
20,584
(906,925)
(5,824,624)
(123,489)
(39,001)
† Unaudited
* Since the commencement of operations: May 31, 2006.
†† Share amounts have been restated to reflect a 1:5 reverse stock split effective April 23, 2007.
NOTES TO FINANCIAL STATEMENTS (continued)
Shares Purchased
Purchased through Dividend Reinvestment
Shares Redeemed
Net Shares Purchased (Redeemed)
September 30,
Period Ended
Year Ended
Period Ended
March 31,
September 30,
Year Ended
Period Ended
Year Ended
Period Ended
Year Ended
2007†
2007
2007†
March 31,
2007
September 30,
2007†
March 31,
2007
September 30,
March 31,
2007†
2007
Russell 2000® 1.5x Strategy Fund
A-Class
85,059
179,447
—
5,553
(72,162)
(206,373)
12,897
(21,373)
C-Class
H-Class
4,227,114
394,289
24,468,124
1,350,907
—
—
28,754
81,017
(4,452,483)
(402,301)
(27,971,122)
(1,707,583)
(225,369)
(8,012)
(327,922)
(3,421,981)
Russell 2000® Fund
A-Class
C-Class
128,129
114,142
22,932*
—
71*
(118,244)
(13,054)*
9,885 9,949*
-->9,885
9,949*
H-Class
2,836,401
3,939,894*
299,998*
—
—
2,011*
1,018*
(104,102)
(3,132,536)
(3,462,667)*
(274,136)*
(296,135)
10,040 26,880*
-->10,040
26,880*
479,238*
Inverse Russell 2000® Strategy Fund
A-Class
268,485
907,994
—
10,595
(325,142)
(664,420)
(56,657)
254,169
C-Class
H-Class
4,074,860
415,616
18,043,046
1,206,358
—
—
61,859
10,209
(3,966,633)
(449,821)
(18,125,293)
(1,056,082)
108,227
(34,205)
160,485
(20,388)
Government Long Bond 1.2x Strategy Fund
Investor Class
39,707,528
70,058,550
64,538
218,614
(40,013,735)
(69,587,173)
(241,669)
689,991
Advisor Class
3,019,553
A-Class
675,667
120,029,145
2,092,952
14,459
14,930
13,767
98,627
(3,341,186)
(640,991)
(121,120,268)
(1,168,676)
(306,703)
(992,496)
49,135
938,043
Inverse Government Long Bond Strategy Fund
C-Class
3,737,664
5,129,040
12,998
23,827
(4,459,811)
(4,370,375)
(709,149)
782,492
Investor Class
23,871,267
34,656,623
—
495,718
(25,469,750)
(58,032,323)
(1,598,483)
(22,879,982)
Advisor Class
A-Class
1,390,781
529,121
5,972,176
1,608,844
—
—
109,000
68,265
(2,495,616)
(2,438,179)
(8,861,966)
(4,471,284)
(1,104,835)
(1,909,058)
(2,821,525)
(2,753,440)
High Yield Strategy Fund*
C-Class
1,218,986
2,591,290
—
431,313
(4,064,236)
(19,779,050)
(2,845,250)
(16,756,447)
A-Class
287,719
—
—
—
(1,347)
—
286,372
—
C-Class
H-Class
2,386,741
51,188
—
—
—
—
—
—
(1,065,182)
(10,879)
—
—
1,321,559
40,309
—
—
Inverse High Yield Strategy Fund*
A-Class
C-Class
239,240
40,174
—
—
—
—
(198,800)
—
—
—
(9,763)
—
40,440
—
H-Class
30,411
—
Europe 1.25x Strategy Fund
560,542
—
—
—
(503,783)
—
56,759
—
A-Class
318,690
762,570
—
2,118
(264,700)
(381,986)
53,990
382,702
C-Class
H-Class
3,431,024
9,895,375
30,427,446
4,819,796
—
—
22,736
2,462
(3,301,697)
(8,749,596)
(30,348,473)
(4,859,292)
1,145,779
129,327
(37,034)
101,709
† Unaudited
* Since the commencement of operations: May 31, 2006 — Russell 2000® Fund; April 16, 2007 — High Yield Strategy Fund and Inverse High Yield Strategy Fund.
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,
March 31,
2007†
2007
September 30,
March 31,
2007†
2007
Japan 1.25x Strategy Fund
A-Class
401,771
506,697
—
172,908
(252,918)
(293,791)
148,853
385,814
C-Class
H-Class
8,412,282
977,455
19,227,316
1,239,745
—
—
570,901
142,934
(1,071,835)
(9,706,376)
(20,454,637)
(1,348,350)
(1,294,094)
(94,380)
(656,420)
34,329
Small-Cap Value Fund
A-Class
91,740
284,035
—
52
(117,096)
(183,571)
(25,356)
100,516
C-Class
H-Class
827,494
27,217
8,631,833
4,333,852
—
—
366
253
(981,586)
(59,419)
(11,406,222)
(4,840,427)
(154,092)
(32,202)
(2,774,023)
(506,322)
Mid-Cap Value Fund
A-Class
80,039
245,850
—
212
(108,835)
(162,888)
(28,796)
83,174
C-Class
H-Class
1,497,866
220,163
11,102,812
488,648
—
—
7,273
888
(3,362,945)
(248,430)
(10,003,491)
(488,650)
(1,865,079)
(28,267)
1,106,594
886
Large-Cap Value Fund
A-Class
138,184
285,031
—
562
(145,156)
(150,248)
(6,972)
135,345
C-Class
H-Class
2,994,209
1,023,019
26,008,242
7,914,068
—
—
60,827
1,653
(7,966,946)
(1,536,971)
(22,491,073)
(7,422,419)
(513,952)
493,302
(4,972,737)
3,577,996
Small-Cap Growth Fund
A-Class
C-Class
212,576
127,341
—
—
(162,613)
(113,401)
49,963 13,940
-->49,963
13,940
H-Class
2,527,289
1,590,214
6,020,424
1,971,684
—
—
—
—
(2,837,104)
(1,562,859)
(7,740,354)
(1,922,367)
27,355
49,317
(309,815)
(1,719,930)
Mid-Cap Growth Fund
A-Class
C-Class
138,060
574,350
269,187
646,301
—
—
3,352
3,108
(86,941)
(230,040)
51,119 42,499
-->51,119
42,499
H-Class
3,334,646
5,358,319
—
56,388
(3,287,923)
(576,347)
(6,693,913)
(577,261)
46,723
(1,997)
72,148
(1,279,206)
Large-Cap Growth Fund
A-Class
C-Class
2,471,983
93,596
202,640
—
—
(61,993)
(139,178)
31,603 63,462
-->31,603
63,462
H-Class
3,917,701
11,081,000
6,304,099
—
—
—
—
(2,103,585)
(6,367,140)
(3,208,402)
(10,509,352)
368,398
(63,041)
U.S. Government Money Market Fund
709,299
571,648
Investor Class
9,330,259,380
17,412,386,340
20,157,007
41,147,937
(9,381,042,927)
(17,446,274,948)
(30,626,540)
7,259,329
Advisor Class
A-Class
2,173,258,483
3,589,122,862
45,442,231
74,982,888
3,116,288
354,932
6,747,367
557,808
(2,172,519,530)
(3,543,630,372)
(46,187,404)
(71,085,774)
3,855,241
(390,241)
52,239,857
4,454,922
C-Class
632,765,423
1,456,374,459
1,866,369
3,708,601
(664,916,648)
(1,470,712,897)
(30,284,856)
(10,629,837)
† 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%
5.05%
Goldman Sachs Group, Inc.
$101,250,000
$101,250,000
10/01/07
Rate
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
Nova Fund
$
19,162,855
$
18,499,630
S&P 500 Fund
1,346,415
1,301,414
OTC Fund
159,629,573
154,381,170
Mid-Cap 1.5x Strategy Fund
6,328,730
6,082,922
Russell 2000® 1.5x Strategy Fund
12,878,495
12,241,459
Russell 2000® Fund
1,072,191
1,018,296
Europe 1.25x Strategy Fund
13,692,280
13,353,520
Small-Cap Value Fund
2,249,027
2,102,240
Mid-Cap Value Fund
4,110,833
3,930,622
Large-Cap Value Fund
4,312,404
4,133,483
Small-Cap Growth Fund
5,899,225
5,667,096
Mid-Cap Growth Fund
4,808,236
4,613,253
Large-Cap Growth Fund
16,108,978
15,615,568
U.S. Government Money Market Fund
101,250,000
99,405,000
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
123
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
9.
New Accounting Pronouncements
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. Dissolution of the Master/Feeder Arrangement
Effective April 1, 2007, the Nova Master Portfolio, the Inverse S&P 500 Master Portfolio, the Inverse OTC Master Portfolio,
the Inverse Government Long Bond Master Portfolio, the Nova Fund, the Inverse S&P 500 Fund, the Inverse OTC Fund,
and the Inverse Government Long Bond Fund ceased operations under the Master/Feeder Arrangement. The Master
Portfolios and corresponding Feeder Funds were consolidated into the existing Funds, leaving the Nova Fund, the Inverse
S&P 500 Strategy Fund, the Inverse OTC Strategy Fund, and the Inverse Government Long Bond Strategy Fund. As a
result of the Master/Feeder dissolution, the Trust now consists of only fifty-three Funds. All other fund operations will
continue unchanged. There was no change in the aggregate market value of the outstanding shares, nor in the NAV of the
Funds as a result of this transaction.
The following table represents the Net Investment Income of the Funds as previously reported and as revised in the
Financial Highlights of this report.
124
|
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Feeder
Master
Net Investment
Combined
Income (Loss)
Income (Loss)
Income (Loss)
Net Investment
Net Investment
Fund
(Previously Reported)
(Previously Reported)
(Revised)
Nova Fund Investor Class
March 31, 2006
(0.45)%
1.40%
0.95%
March 31, 2005
(0.44)%
1.26%
0.82%
March 31, 2004
0.35%
0.81%
1.16%
March 31, 2003
0.44%
0.91%
1.35%
Nova Fund Advisor Class
March 31, 2006
(0.96)%
1.40%
0.44%
March 31, 2005
(0.94)%
1.26%
0.32%
March 31, 2004
(0.24)%
0.81%
0.57%
March 31, 2003
(0.17)%
0.91%
0.74%
Nova Fund A-Class
March 31, 2006
(0.71)%
1.40%
0.69%
March 31, 2005
(0.68)%
1.26%
0.58%
March 31, 2004
0.00%
0.81%
0.81%
Nova Fund C-Class
March 31, 2006
(1.46)%
1.40%
(0.06)%
March 31, 2005
(1.44)%
1.26%
(0.18)%
March 31, 2004
(0.56)%
0.81%
0.25%
March 31, 2003
(0.46)%
0.91%
0.45%
Inverse S&P 500 Strategy Fund Investor Class
March 31, 2006
(0.45)%
2.74%
2.29%
March 31, 2006
(0.46)%
0.71%
0.25%
March 31, 2004
(0.37)%
0.09%
(0.28)%
March 31, 2003
0.06%
0.52%
0.58%
Inverse S&P 500 Strategy Fund Advisor Class
March 31, 2006
(0.95)%
2.74%
1.79%
March 31, 2005
(0.96)%
0.71%
(0.25)%
March 31, 2004
(0.86)%
0.09%
(0.77)%
March 31, 2003
(0.45)%
0.52%
0.07%
Inverse S&P 500 Strategy Fund A-Class
March 31, 2006
(0.70)%
2.74%
2.04%
March 31, 2005
(0.71)%
0.71%
0.00%
March 31, 2004
0.00%
0.09%
0.09%
Inverse S&P 500 Strategy Fund C-Class
March 31, 2006
(1.45)%
2.74%
1.29%
March 31, 2005
(1.46)%
0.71%
(0.75)%
March 31, 2004
(1.42)%
0.09%
(1.33)%
March 31, 2003
(0.97)%
0.52%
(0.45)%
Inverse OTC Strategy Fund Investor Class
March 31, 2006
(0.45)%
2.67%
2.22%
March 31, 2005
(0.46)%
0.66%
0.20%
March 31, 2004
(0.47)%
0.10%
(0.37)%
March 31, 2003
18.11%
0.51%
18.62%
Inverse OTC Strategy Fund Advisor Class
March 31, 2006
(0.96)%
2.67%
1.71%
March 31, 2005
(0.96)%
0.66%
(0.30)%
March 31, 2004
(0.97)%
0.10%
(0.87)%
Inverse OTC Strategy Fund A-Class
March 31, 2006
(0.70)%
2.67%
1.97%
March 31, 2005
(0.70)%
0.66%
(0.04)%
March 31, 2004
0.00%
0.10%
0.10%
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
|
125
NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)
Feeder
Master
Combined
Income (Loss)
Income (Loss)
Income (Loss)
Net Investment
Net Investment
Net Investment
Fund
(Previously Reported)
(Previously Reported)
(Revised)
Inverse OTC Strategy Fund C-Class
March 31, 2006
(1.46)%
2.67%
1.21%
March 31, 2005
(1.46)%
0.66%
(0.80)%
March 31, 2004
(1.48)%
0.10%
(1.38)%
March 31, 2003
8.23%
0.51%
8.74%
Inverse Government Long Bond Strategy Fund Investor Class
March 31, 2006
(0.40)%
1.18%
0.78%
March 31, 2005
(0.40)%
1.93%
1.53%
March 31, 2004
(0.45)%
(3.39)%
(3.84)%
March 31, 2003
(0.45)%
(2.72)%
(3.17)%
Inverse Government Long Bond Strategy Fund Advisor Class
March 31, 2006
(0.90)%
1.18%
0.28%
March 31, 2005
(0.90)%
1.93%
1.03%
March 31, 2004
(0.93)%
(3.39)%
(4.32)%
Inverse Government Long Bond Strategy Fund A-Class
March 31, 2006
(0.65)%
1.18%
0.53%
March 31, 2005
(0.64)%
1.93%
1.29%
March 31, 2004
0.00%
(3.39)%
(3.39)%
Inverse Government Long Bond Strategy Fund C-Class
March 31, 2006
(1.40)%
1.18%
(0.22)%
March 31, 2005
(1.40)%
1.93%
0.53%
March 31, 2004
(1.45)%
(3.39)%
(4.84)%
March 31, 2003
(1.64)%
(2.72)%
(4.36)%
11. 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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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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.
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
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
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OTHER INFORMATION (Unaudited) (continued)
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.
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
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OTHER INFORMATION (Unaudited) (continued)
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,
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.
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OTHER INFORMATION (Unaudited) (concluded)
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.
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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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)
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.
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
Rydex Variable Trust – 1998
Board (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
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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
Assistant Treasurer (1966)
Dynamic 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
Controller (1974)
Funds, Rydex ETF Trust (2006 to present); Director of Fund Administration of
Rydex Investments (2001 to present)
this person is affiliated with Rydex Investments.
* 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
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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800-820-0888
RBENF-SEMI-0907x0308