UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811- 07584
-------------
Rydex Series Funds
--------------------------------
(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
--------------------------------
(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex Series Funds
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-301-296-5100
--------------
Date of fiscal year end: March 31, 2004
--------------
Date of reporting period: September 30, 2003
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
THE RYDEX SERIES FUNDS
- --------------------------------------------------------------------------------
BENCHMARK FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 2003
NOVA FUND
URSA FUND
OTC FUND
ARKTOS FUND
MEDIUS FUND
MEKROS FUND
U.S.GOVERNMENT BOND FUND
JUNO FUND
LARGE-CAP EUROPE FUND
LARGE-CAP JAPAN FUND
U.S.GOVERNMENT MONEY MARKET FUND
NOVA MASTER PORTFOLIO
URSA MASTER PORTFOLIO
ARKTOS MASTER PORTFOLIO
JUNO MASTER PORTFOLIO
[LOGO OMITTED]
Rydex Investments
Essential for modern markets[TM]
RBFSA-3-11/03
This report and the financial statements contained herein are submitted for the
general information of our shareholders. The report is not intended for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
Distributed by Rydex Distributors, Inc.
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ........................................ 2
BENCHMARK FUNDS
SCHEDULES OF INVESTMENTS .................................... 4
STATEMENTS OF ASSETS AND LIABILITIES ........................ 36
STATEMENTS OF OPERATIONS .................................... 40
STATEMENTS OF CHANGES IN NET ASSETS ......................... 44
FINANCIAL HIGHLIGHTS ........................................ 50
BENCHMARK PORTFOLIOS
SCHEDULES OF INVESTMENTS .................................... 91
STATEMENTS OF ASSETS AND LIABILITIES ........................ 106
STATEMENTS OF OPERATIONS .................................... 108
STATEMENTS OF CHANGES IN NET ASSETS ......................... 110
FINANCIAL HIGHLIGHTS ........................................ 112
NOTES TO FINANCIAL STATEMENTS ..................................... 116
2
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The period April 1 through September 30, 2003 can be characterized by remarkable
resilience in the financial markets and cautious optimism on the economy. Having
started the period in a time of high geopolitical uncertainty and weak economic
activity, the markets returned double-digit gains across the board. Most notable
in the rally was the solid outperformance of the technology sector and
small-capitalization stocks. For the period, small-cap stocks, as measured by
the Russell 2000[R], outperformed the predominantly large-cap S&P 500[R] by an
incredible 16.17%, returning 34.62% and 18.45%, respectively. Similarly, the
tech-heavy Nasdaq 100[R] returned 27.98%, beating the S&P 500 by 9.53%.
The mutual fund industry was rocked by revelations of trading abuses by
corporate executives and fund managers, as well as disclosure of special deals
for top customers. The charges and allegations as presented by New York Attorney
General, Eliot Spitzer, represent a serious breach of fiduciary duty and are
almost certain to bring regulatory changes to the industry. The term
"market-timing" has, unfortunately, taken the connotation of illicit investor
behavior. However, we believe that funds designed to accommodate active trading
can be an important tool in a tactical asset allocation strategy provided
trading activity is monitored and the rules to protect current shareholders are
strictly enforced.
Investor optimism and positive news regarding cancer-fighting drugs helped spur
the biotechnology sector as Rydex Biotechnology Fund rose 36.36% for the period.
Technology, electronics and internet stocks all outpaced the broader market. Tax
credits and home mortgage refinancing increased consumer discretionary income
boosting Rydex Retailing Fund by 28.25%. (Biotechnology Fund and Retailing Fund
are part of the Rydex Sector Funds and are reported on separately.)
In the strong, upward trending market of the last two quarters, Rydex inverse
funds performed as expected, generating corresponding losses to their respective
benchmarks. Rydex Ursa Fund was down 16.23%, corresponding to an 18.45% increase
in the S&P 500. Similarly, Rydex Arktos Fund fell 23.76% while the Nasdaq 100
increased 27.98%.
On the fixed-income side, uneven reports of a stronger economy, positive and
negative unemployment data and increasing bond issuance led to volatility in the
Treasury market throughout the period. On June 16, when the Long Bond yield hit
a low of 4.17%, more positive economic data and improving investor sentiment
initiated an upward trend in rates that topped out on August 15 at 5.45%.
Further uncertainty surrounding the labor market pushed yields lower. Despite
the fixed-income market's lack of direction, the Long Bond yielded 4.88% on
September 30, 2003, closely matching the 4.82% yield recorded on March 31, 2003.
SEMI-ANNUAL REPORT 3
- --------------------------------------------------------------------------------
The outlook for higher interest rates and the speculation of a "bond bubble" has
led to increased inflows to Rydex Juno Fund. Juno's assets reached $674.3
million at the end of the third quarter up from $189.9 million at March 31,
2003. This inverse bond fund is an option for investors to speculate on rising
interest rates or to protect fixed-income holdings in a rising interest rate
environment.
Staging a surprising comeback were the stocks of European and Japanese
companies, which have been conspicuously underperforming in recent years. Rydex
Large-Cap Europe Fund rose 29.76% reflecting improving fundamentals and a strong
Euro versus the U.S. dollar. Rydex Large-Cap Japan rose an astounding 43.10% for
the period reflecting improvements in Japanese domestic growth and growing
global investor confidence.
Times such as these can be challenging for investors. At Rydex Investments, we
acknowledge and appreciate the trust you have placed in our firm's quality and
integrity by investing with us.
Sincerely,
/S/Carl G. Verboncoeur
Carl G. Verboncoeur
Chief Executive Officer
Rydex Investments
4
OTC FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS 98.5%
INFORMATION TECHNOLOGY 59.2%
SOFTWARE 21.2%
Microsoft Corp.+ ............... 3,056,800 $ 84,948,472
Oracle Corp.* .................. 1,516,500 17,015,130
Intuit, Inc.*+ ................. 306,603 14,790,529
Veritas Software
Corp.*+ ...................... 329,600 10,349,440
PeopleSoft, Inc.*+ ............. 422,200 7,679,818
Check Point Software
Technologies Ltd.*+ .......... 446,300 7,497,840
Electronic Arts, Inc.*+ ........ 72,400 6,677,452
Adobe Systems, Inc. ............ 169,000 6,634,940
Synopsys, Inc.*+ ............... 214,600 6,603,242
Symantec Corp.*+ ............... 75,900 4,783,218
BEA Systems, Inc.*+ ............ 360,800 4,347,640
Citrix Systems, Inc.* .......... 195,300 4,312,224
Mercury Interactive
Corp.*+ ...................... 66,800 3,033,388
Siebel Systems,
Inc.* ........................ 153,600 1,492,992
-----------------
TOTAL SOFTWARE 180,166,325
-----------------
SEMICONDUCTOR EQUIPMENT
& PRODUCTS 16.9%
Intel Corp. .................... 2,015,100 55,435,401
Maxim Integrated
Products, Inc.+ .............. 412,900 16,309,550
Linear Technology
Corp.+ ....................... 384,400 13,765,364
Xilinx, Inc.*+ ................. 439,100 12,518,741
Applied Materials,
Inc.*+ ....................... 629,700 11,422,758
Altera Corp.* .................. 599,800 11,336,220
KLA-Tencor Corp.*+ ............. 216,300 11,117,820
Microchip Technology,
Inc.+ ........................ 292,700 7,007,238
Novellus Systems,
Inc.*+ ....................... 85,500 2,885,625
NVIDIA Corp.*+ ................. 128,500 2,044,563
-----------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TOTAL SEMICONDUCTOR
EQUIPMENT & PRODUCTS $143,843,280
-----------------
COMMUNICATIONS EQUIPMENT 11.5%
Cisco Systems,
Inc.*+ ....................... 2,054,800 40,150,792
QUALCOMM, Inc.+ ................ 884,500 36,830,580
Tellabs, Inc.* ................. 856,800 5,817,672
Juniper Networks,
Inc.*+ ....................... 306,100 4,567,012
QLogic Corp.*+ ................. 87,600 4,118,076
Comverse Technology,
Inc.*+ ....................... 211,400 3,162,544
CIENA Corp.*+ .................. 260,400 1,538,964
Telefonaktiebolaget
LM Ericsson--
SP ADR*+ ..................... 61,600 904,288
JDS Uniphase Corp.* ............ 65,000 234,000
-----------------
TOTAL COMMUNICATIONS
EQUIPMENT 97,323,928
-----------------
COMPUTERS & PERIPHERALS 5.5%
Dell, Inc.* .................... 906,300 30,261,357
Apple Computer,
Inc.*+ ....................... 353,700 7,296,831
Network Appliance,
Inc.*+ ....................... 267,200 5,485,616
Sun Microsystems,
Inc.* ........................ 1,059,800 3,507,938
-----------------
TOTAL COMPUTERS
& PERIPHERALS 46,551,742
-----------------
INTERNET SOFTWARE & SERVICES 1.4%
Yahoo!, Inc.*+ ................. 239,800 8,484,124
VeriSign, Inc.*+ ............... 258,000 3,475,260
-----------------
TOTAL INTERNET SOFTWARE
& SERVICES 11,959,384
-----------------
IT CONSULTING & SERVICES 1.4%
Paychex, Inc.+ ................. 173,000 5,869,890
Fiserv, Inc.*+ ................. 156,400 5,666,372
-----------------
TOTAL IT CONSULTING & SERVICES 11,536,262
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 5
OTC FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
ELECTRONIC EQUIPMENT
& INSTRUMENTS 1.3%
CDW Corp.+ ..................... 77,200 $ 4,457,528
Sanmina-SCI Corp.* ............. 440,000 4,268,000
Flextronics
International
Ltd.*+ ....................... 143,300 2,031,994
-----------------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 10,757,522
-----------------
TOTAL INFORMATION
TECHNOLOGY 502,138,443
-----------------
CONSUMER DISCRETIONARY 15.6%
INTERNET & CATALOG RETAIL 6.1%
eBay, Inc.*+ ................... 390,800 20,911,708
InterActiveCorp*+ .............. 621,000 20,524,050
Amazon.com, Inc.*+ ............. 213,200 10,310,352
-----------------
TOTAL INTERNET &
CATALOG RETAIL 51,746,110
-----------------
MEDIA 4.5%
Comcast Corp.--
Class A*+ .................... 760,900 23,496,592
EchoStar
Communications
Corp.*+ ...................... 193,700 7,412,899
Pixar, Inc.*+ .................. 44,500 2,961,920
Lamar Advertising
Co.* ......................... 89,800 2,634,732
PanAmSat Corp.*+ ............... 139,204 2,015,674
-----------------
TOTAL MEDIA 38,521,817
-----------------
SPECIALTY RETAIL 2.9%
Bed Bath & Beyond,
Inc.*+ ....................... 323,700 12,358,866
Staples, Inc.*+ ................ 263,900 6,267,625
Ross Stores, Inc.+ ............. 66,500 3,082,940
Petsmart, Inc.*+ ............... 118,100 2,680,870
-----------------
TOTAL SPECIALTY RETAIL 24,390,301
-----------------
HOTELS RESTAURANTS & LEISURE 1.5%
Starbucks Corp.*+ .............. 434,900 12,525,120
-----------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TOTAL HOTELS RESTAURANTS
& LEISURE $ 12,525,120
-----------------
MULTILINE RETAIL 0.4%
Dollar Tree Stores,
Inc.*+ ....................... 96,300 3,226,050
-----------------
TOTAL MULTILINE RETAIL 3,226,050
-----------------
AUTO COMPONENTS 0.2%
Gentex Corp.* .................. 62,600 2,180,984
-----------------
TOTAL AUTO COMPONENTS 2,180,984
-----------------
TOTAL CONSUMER
DISCRETIONARY 132,590,382
-----------------
HEALTH CARE 14.7%
BIOTECHNOLOGY 11.6%
Amgen, Inc.*+ .................. 525,300 33,918,621
Gilead Sciences,
Inc.*+ ....................... 226,000 12,640,180
Genzyme Corp.*+ ................ 238,600 11,035,250
Biogen, Inc.*+ ................. 235,600 9,006,988
Chiron Corp.*+ ................. 128,800 6,657,672
Cephalon, Inc.*+ ............... 138,900 6,378,288
Millennium
Pharmaceuticals,
Inc.*+ ....................... 380,000 5,848,200
ICOS Corp.*+ ................... 91,600 3,510,112
MedImmune, Inc.*+ .............. 96,800 3,195,368
IDEC Pharmaceuticals
Corp.*+ ...................... 94,200 3,122,730
Human Genome
Sciences, Inc.*+ ............. 169,100 2,309,906
Invitrogen Corp.* .............. 16,100 933,639
-----------------
TOTAL BIOTECHNOLOGY 98,556,954
-----------------
HEALTH CARE PROVIDERS & SERVICES 1.5%
Express Scripts, Inc.*+ ........ 67,600 4,133,740
Patterson Dental
Co.*+ ........................ 58,400 3,362,672
First Health Group
Corp.* ....................... 111,700 2,920,955
Lincare Holdings,
Inc.*+ ....................... 73,900 2,708,435
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
6
OTC FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TOTAL HEALTH CARE
PROVIDERS & SERVICES $ 13,125,802
-----------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.0%
Biomet, Inc.+ .................. 139,800 4,698,678
DENTSPLY
International, Inc.+ ......... 84,398 3,784,406
-----------------
TOTAL HEALTH CARE
EQUIPMENT & SUPPLIES 8,483,084
-----------------
PHARMACEUTICALS 0.6%
Teva Pharmaceutical
Industries Ltd. --
SP ADR+ ...................... 84,900 4,852,035
-----------------
TOTAL PHARMACEUTICALS 4,852,035
-----------------
TOTAL HEALTH CARE 125,017,875
-----------------
INDUSTRIALS 4.5%
COMMERCIAL SERVICES & SUPPLIES 2.2%
Apollo Group, Inc.--
Class A*+ .................... 147,200 9,719,616
Cintas Corp.+ .................. 170,700 6,288,588
Monster Worldwide,
Inc.*+ ....................... 105,600 2,659,008
-----------------
TOTAL COMMERCIAL SERVICES
& SUPPLIES 18,667,212
-----------------
MACHINERY 0.9%
PACCAR, Inc.+ .................. 105,500 7,879,795
-----------------
TOTAL MACHINERY 7,879,795
-----------------
AIR FREIGHT & COURIERS 0.7%
Expeditors International
of Washington, Inc. .......... 94,400 3,248,304
C.H. Robinson
Worldwide, Inc. .............. 64,800 2,411,208
-----------------
TOTAL AIR FREIGHT & COURIERS 5,659,512
-----------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
Fastenal Co.+ .................. 61,500 2,324,700
-----------------
TOTAL TRADING COMPANIES
& DISTRIBUTORS 2,324,700
-----------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
ELECTRICAL EQUIPMENT 0.2%
American Power
Conversion Corp. ............. 117,900 $ 2,020,806
-----------------
TOTAL ELECTRICAL EQUIPMENT 2,020,806
-----------------
AIRLINES 0.2%
Ryanair Holdings
PLC--SP ADR*+ ................ 46,000 1,863,000
-----------------
TOTAL AIRLINES 1,863,000
-----------------
TOTAL INDUSTRIALS 38,415,025
-----------------
TELECOMMUNICATION SERVICES 2.4%
WIRELESS TELECOMMUNICATION
SERVICES 2.4%
Nextel Communications,
Inc.--Class A*+ .............. 1,041,100 20,499,259
-----------------
TOTAL WIRELESS
TELECOMMUNICATION
SERVICES 20,499,259
-----------------
TOTAL TELECOMMUNICATION
SERVICES 20,499,259
-----------------
CONSUMER STAPLES 1.1%
FOOD & DRUG RETAILING 1.1%
Costco Wholesale
Corp.*+ ...................... 160,900 5,000,772
Whole Foods Market,
Inc.*+ ....................... 77,000 4,248,860
-----------------
TOTAL FOOD & DRUG RETAILING 9,249,632
-----------------
TOTAL CONSUMER STAPLES 9,249,632
-----------------
MATERIALS 0.7%
CONTAINERS & PACKAGING 0.4%
Smurfit-Stone
Container Corp.*+ ............ 194,900 2,919,602
-----------------
TOTAL CONTAINERS & PACKAGING 2,919,602
-----------------
CHEMICALS 0.3%
Sigma-Aldrich Corp.+ ........... 52,000 2,700,880
-----------------
TOTAL CHEMICALS 2,700,880
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 7
OTC FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TOTAL MATERIALS $ 5,620,482
-----------------
ENERGY 0.3%
ENERGY EQUIPMENT & SERVICES 0.3%
Patterson-UTI Energy, Inc.* ......... 82,400 2,230,568
-----------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,230,568
-----------------
TOTAL ENERGY 2,230,568
-----------------
TOTAL COMMON STOCKS
(Cost $539,106,373) ................... $835,761,666
-----------------
FACE
AMOUNT
-------
FEDERAL AGENCY DISCOUNT NOTES 0.6%
Fannie Mae
1.05% due 10/01/03 .................$5,000,000 5,000,000
-----------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $5,000,000) .................... 5,000,000
-----------------
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ................... 1,707,260 1,707,260
0.94% due 10/01/03 ................... 121,534 121,534
0.93% due 10/01/03 ................... 1,707,260 1,707,260
0.91% due 10/01/03 ................... 1,707,260 1,707,260
0.90% due 10/01/03 ................... 2,410,250 2,410,250
-----------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,653,564) .................... 7,653,564
-----------------
TOTAL INVESTMENTS 100%
(Cost $551,759,937) .................. $ 848,415,230
=================
- -----------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 Nasdaq 100 Index
Futures Contracts
(Aggregate Market Value of
Contracts $9,795,000) ................... 75 $ (423,725)
December 2003 Nasdaq 100
Index Mini Futures Contracts
(Aggregate Market Value of
Contracts $1,828,400) ................... 70 (69,591)
-----------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $11,623,400) .................. $ (493,316)
=================
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
8
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS 85.9%
FINANCIALS 17.0%
BANKS 7.6%
Banknorth Group, Inc. ........... 10,100 $ 285,022
Sovereign Bancorp, Inc.+ ........ 15,210 282,145
Compass Bancshares, Inc. ........ 8,100 280,098
Commerce Bancorp,
Inc./NJ+ ...................... 5,600 268,296
GreenPoint Financial
Corp. ......................... 8,600 256,796
New York Community
Bancorp, Inc.+ ................ 7,300 230,023
M&T Bank Corp. .................. 2,200 192,060
Colonial BancGroup,
Inc.+ ......................... 9,000 129,960
Webster Financial Corp. ......... 3,200 127,616
Westamerica
Bancorporation ................ 2,800 124,460
Investors Financial
Services Corp. ................ 3,300 103,620
Associated Banc-Corp ............ 1,900 71,820
Mercantile Bankshares
Corp. ......................... 1,200 48,000
National Commerce
Financial Corp. ............... 1,000 24,880
TCF Financial Corp. ............. 300 14,385
---------------
TOTAL BANKS 2,439,181
---------------
INSURANCE 4.5%
Fidelity National
Financial, Inc.+ .............. 9,100 273,546
Everest Re Group Ltd.+ .......... 3,600 270,576
W.R. Berkley Corp. .............. 6,800 232,968
American Financial
Group, Inc./OH ................ 8,000 174,000
Brown & Brown, Inc. ............. 5,500 169,290
First American Corp. ............ 6,500 161,850
Radian Group, Inc. .............. 2,400 106,560
Old Republic
International Corp. ........... 1,300 43,017
---------------
TOTAL INSURANCE 1,431,807
---------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
DIVERSIFIED FINANCIALS 3.2%
Legg Mason, Inc.+ ............... 3,700 $ 267,140
A.G. Edwards, Inc. .............. 5,300 203,573
SEI Investments Co. ............. 5,200 169,000
E*TRADE Group, Inc.*+ ........... 12,510 115,843
GATX Corp. ...................... 5,000 105,750
Neuberger Berman, Inc. .......... 2,000 83,740
LaBranche & Co., Inc. ........... 3,100 45,260
AmeriCredit Corp.*+ ............. 3,400 35,020
---------------
TOTAL DIVERSIFIED FINANCIALS 1,025,326
---------------
REAL ESTATE 1.7%
Liberty Property Trust .......... 6,500 240,370
Hospitality Properties
Trust ......................... 6,500 228,020
Mack-Cali Realty Corp. .......... 2,100 82,320
---------------
TOTAL REAL ESTATE 550,710
---------------
TOTAL FINANCIALS 5,447,024
---------------
INFORMATION TECHNOLOGY 13.8%
SEMICONDUCTOR EQUIPMENT
& PRODUCTS 4.2%
Microchip Technology,
Inc.+ ......................... 9,000 215,460
Intersil Corp.--Class A* ........ 6,000 142,800
Silicon Laboratories,
Inc.* ......................... 3,100 139,345
International Rectifier
Corp.*+ ....................... 3,304 123,702
Lam Research Corp.*+ ............ 5,500 121,825
Integrated Circuit
Systems, Inc.* ................ 3,400 102,136
Cree, Inc.*+ .................... 5,400 100,008
Cypress Semiconductor
Corp.*+ ....................... 5,600 99,008
Cabot Microelectronics
Corp.*+ ....................... 1,500 83,610
Integrated Device
Technology, Inc.* ............. 6,699 83,201
Atmel Corp.* .................... 17,310 69,413
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 9
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Lattice Semiconductor
Corp.* ........................ 4,200 $ 29,862
LTX Corp.* ...................... 2,500 28,150
---------------
TOTAL SEMICONDUCTOR
EQUIPMENT & PRODUCTS 1,338,520
---------------
SOFTWARE 2.8%
Synopsys, Inc.* ................. 7,900 243,083
Sybase, Inc.* ................... 10,810 183,878
Cadence Design Systems,
Inc.*+ ........................ 6,600 88,440
Ascential Software
Corp.* ........................ 4,707 87,221
Macromedia, Inc.* ............... 3,500 86,590
Legato Systems, Inc.* ........... 5,700 63,897
Mentor Graphics
Corp.*+ ....................... 3,400 59,602
Fair Isaac Corp. ................ 400 23,584
Network Associates,
Inc.* ......................... 1,600 22,016
Activision, Inc.* ............... 1,200 14,340
RSA Security, Inc.* ............. 400 5,712
---------------
TOTAL SOFTWARE 878,363
---------------
ELECTRONIC EQUIPMENT
& INSTRUMENTS 2.3%
CDW Corp.+ ...................... 5,300 306,022
National Instruments
Corp.+ ........................ 3,300 132,825
Varian, Inc.* ................... 3,800 119,016
Vishay Intertechnology,
Inc.* ......................... 6,500 113,880
Avnet, Inc.*+ ................... 4,500 74,340
---------------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 746,083
---------------
IT CONSULTING & SERVICES 1.9%
Affiliated Computer
Services, Inc.--
Class A*+ ..................... 4,200 204,498
Acxiom Corp.* ................... 9,800 154,448
CheckFree Corp.* ................ 3,700 74,000
DST Systems, Inc.* .............. 1,800 67,680
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Certegy, Inc. ................... 2,100 $ 67,431
Keane, Inc.* .................... 2,500 31,950
---------------
TOTAL IT CONSULTING & SERVICES 600,007
---------------
COMPUTERS & PERIPHERALS 1.7%
Diebold, Inc. ................... 4,000 202,600
SanDisk Corp.*+ ................. 2,500 159,350
Storage Technology
Corp.* ........................ 3,900 94,146
Imation Corp. ................... 1,900 62,035
Quantum Corp.* .................. 6,300 19,404
---------------
TOTAL COMPUTERS & PERIPHERALS 537,535
---------------
COMMUNICATIONS EQUIPMENT 0.9%
ADTRAN, Inc.+ ................... 1,500 91,770
McData Corp.--
Class A* ...................... 6,300 75,411
Avocent Corp.* .................. 1,900 57,551
Polycom, Inc.*+ ................. 3,000 49,830
3Com Corp.* ..................... 2,000 11,800
Harris Corp. .................... 100 3,579
Plantronics, Inc.* .............. 100 2,387
---------------
TOTAL COMMUNICATIONS
EQUIPMENT 292,328
---------------
INTERNET SOFTWARE & SERVICES 0.0%
Internet Security
Systems, Inc.* ................ 100 1,250
---------------
TOTAL INTERNET SOFTWARE
& SERVICES 1,250
---------------
TOTAL INFORMATION
TECHNOLOGY 4,394,086
---------------
CONSUMER DISCRETIONARY 13.6%
HOTELS RESTAURANTS & LEISURE 3.5%
Brinker International,
Inc.*+ ........................ 7,200 240,192
International Speedway
Corp.--Class A ................ 5,200 228,228
Outback Steakhouse, Inc. ........ 4,600 174,202
Ruby Tuesday, Inc. .............. 5,200 125,372
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
10
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Park Place Entertainment
Corp.* ........................ 12,510 $ 112,715
CBRL Group, Inc.+ ............... 2,900 102,892
Cheesecake Factory,
Inc.*+ ........................ 2,100 75,957
GTECH Holdings
Corp. ......................... 600 25,710
Krispy Kreme
Doughnuts, Inc.* .............. 600 23,100
Applebee's International,
Inc. .......................... 500 15,740
---------------
TOTAL HOTELS RESTAURANTS
& LEISURE 1,124,108
---------------
MEDIA 3.0%
Westwood One, Inc.* ............. 7,600 229,444
Washington Post Co.--
Class B ....................... 300 199,500
Emmis Communications
Corp.--Class A* ............... 6,900 139,242
Entercom
Communications
Corp.* ........................ 2,300 103,086
Reader's Digest
Association, Inc. ............. 7,300 102,127
Univision
Communications,
Inc.--Class A* ................ 2,600 83,018
Catalina Marketing
Corp.* ........................ 3,300 50,127
Scholastic Corp.* ............... 1,200 34,548
---------------
TOTAL MEDIA 941,092
---------------
HOUSEHOLD DURABLES 2.0%
Lennar Corp.--
Class A+ ...................... 2,600 202,254
Furniture Brands
International, Inc.*+ ......... 5,200 125,320
D.R. Horton, Inc. ............... 3,400 111,180
Toll Brothers, Inc.*+ ........... 3,100 94,302
Hovnanian Enterprises,
Inc.--Class A* ................ 600 38,622
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Mohawk Industries, Inc.* ........ 500 $ 35,660
Blyth, Inc. ..................... 1,100 29,678
---------------
TOTAL HOUSEHOLD DURABLES 637,016
---------------
SPECIALTY RETAIL 1.7%
Pier 1 Imports, Inc. ............ 8,100 155,844
CarMax, Inc.* ................... 3,800 124,108
Michaels Stores, Inc.+ .......... 2,600 105,976
Abercrombie & Fitch
Co.--Class A* ................. 2,300 63,733
Petsmart, Inc.* ................. 2,500 56,750
Chico's FAS, Inc.*+ ............. 900 27,576
Claire's Stores, Inc. ........... 600 20,076
---------------
TOTAL SPECIALTY RETAIL 554,063
---------------
MULTILINE RETAIL 1.3%
Saks, Inc.* ..................... 15,010 173,066
Dollar Tree Stores, Inc.*+ ...... 2,900 97,150
99 Cents Only Stores* ........... 2,600 84,084
Neiman-Marcus Group,
Inc.--Class A* ................ 1,200 50,040
---------------
TOTAL MULTILINE RETAIL 404,340
---------------
AUTO COMPONENTS 1.1%
Lear Corp.*+ .................... 3,200 168,448
ArvinMeritor, Inc. .............. 6,200 110,422
BorgWarner, Inc. ................ 600 40,710
Bandag, Inc. .................... 1,200 40,476
---------------
TOTAL AUTO COMPONENTS 360,056
---------------
TEXTILES & APPAREL 1.0%
Coach, Inc.* .................... 3,800 207,480
Timberland Co.--
Class A* ...................... 2,700 115,182
---------------
TOTAL TEXTILES & APPAREL 322,662
---------------
TOTAL CONSUMER
DISCRETIONARY 4,343,337
---------------
HEALTH CARE 11.5%
HEALTH CARE PROVIDERS & SERVICES 3.5%
Lincare Holdings, Inc.* ......... 7,000 256,550
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 11
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Patterson Dental Co.* ........... 2,400 $ 138,192
AdvancePCS*+ .................... 2,800 127,596
Omnicare, Inc. .................. 2,900 104,574
Oxford Health Plans,
Inc.* ......................... 2,400 99,144
Coventry Health Care,
Inc.*+ ........................ 1,800 94,932
Health Net, Inc.* ............... 2,900 91,843
First Health Group
Corp.* ........................ 2,200 57,530
PacifiCare Health
Systems, Inc.* ................ 1,000 48,800
Henry Schein, Inc.* ............. 800 45,360
Community Health
Systems, Inc.* ................ 1,300 28,210
Triad Hospitals, Inc.* .......... 600 18,168
LifePoint Hospitals, Inc.* ...... 200 4,810
---------------
TOTAL HEALTH CARE PROVIDERS
& SERVICES 1,115,709
---------------
PHARMACEUTICALS 3.0%
Mylan Laboratories, Inc. ........ 7,300 282,145
IVAX Corp.* ..................... 9,000 176,400
Barr Laboratories, Inc.* ........ 1,900 129,599
ICN Pharmaceuticals,
Inc. .......................... 6,300 108,108
Sepracor, Inc.* ................. 3,600 99,144
SICOR, Inc.* .................... 4,300 82,904
Pharmaceutical Resources,
Inc.* ......................... 800 54,576
Perrigo Co. ..................... 2,900 36,917
---------------
TOTAL PHARMACEUTICALS 969,793
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.8%
DENTSPLY International,
Inc. .......................... 5,700 255,588
Varian Medical Systems,
Inc.* ......................... 3,700 212,676
STERIS Corp.* ................... 8,100 186,462
Beckman Coulter, Inc. ........... 3,800 173,052
VISX, Inc.* ..................... 1,100 20,955
Cytyc Corp.* .................... 1,300 19,552
Apogent Technologies,
Inc.* ......................... 700 14,602
---------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TOTAL HEALTH CARE EQUIPMENT
& SUPPLIES $ 882,887
---------------
BIOTECHNOLOGY 2.2%
Gilead Sciences, Inc.*+ ......... 5,400 302,022
IDEC Pharmaceuticals
Corp.*+ ....................... 5,100 169,065
Millennium
Pharmaceuticals, Inc.*+ ....... 8,600 132,354
Vertex Pharmaceuticals,
Inc.*+ ........................ 9,300 114,390
---------------
TOTAL BIOTECHNOLOGY 717,831
---------------
TOTAL HEALTH CARE 3,686,220
---------------
INDUSTRIALS 10.7%
COMMERCIAL SERVICES & SUPPLIES 4.3%
D&B Corp.* ...................... 5,600 232,624
Manpower, Inc. .................. 6,000 222,600
Viad Corp. ...................... 8,600 205,368
Education Management
Corp.* ........................ 3,300 190,311
Copart, Inc.* ................... 10,000 108,000
Stericycle, Inc.* ............... 1,800 84,906
Career Education Corp.* ......... 1,600 72,480
Corinthian Colleges,
Inc.* ......................... 1,200 68,592
Rollins, Inc. ................... 3,300 58,872
DeVry, Inc.* .................... 2,300 54,418
United Rentals, Inc.* ........... 2,100 33,789
Republic Services, Inc. ......... 1,300 29,432
Sylvan Learning Systems,
Inc.* ......................... 500 13,640
ChoicePoint, Inc.* .............. 100 3,350
---------------
TOTAL COMMERCIAL SERVICES
& SUPPLIES 1,378,382
---------------
MACHINERY 1.7%
SPX Corp.*+ ..................... 3,100 140,368
Nordson Corp. ................... 5,300 137,217
Harsco Corp. .................... 3,000 115,410
Donaldson Co., Inc. ............. 1,400 75,460
Flowserve Corp.* ................ 2,800 56,840
---------------
TOTAL MACHINERY 525,295
---------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
12
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
AIR FREIGHT & COURIERS 1.3%
Expeditors International
of Washington, Inc. ........... 6,500 $ 223,665
J.B. Hunt Transport
Services, Inc.* ............... 7,600 197,752
---------------
TOTAL AIR FREIGHT & COURIERS 421,417
---------------
CONSTRUCTION & ENGINEERING 1.1%
Jacobs Engineering Group,
Inc.* ......................... 3,600 162,360
Granite Construction,
Inc. .......................... 7,200 134,496
Quanta Services, Inc.* .......... 4,900 40,523
---------------
TOTAL CONSTRUCTION
& ENGINEERING 337,379
---------------
AEROSPACE & DEFENSE 0.9%
L-3 Communications
Holdings, Inc.*+ .............. 4,800 207,600
Precision Castparts
Corp. ......................... 2,200 77,220
Sequa Corp.--Class A* ........... 100 4,281
---------------
TOTAL AEROSPACE & DEFENSE 289,101
---------------
AIRLINES 0.6%
JetBlue Airways Corp.*+ ......... 2,005 122,245
Alaska Air Group, Inc.* ......... 2,800 77,896
---------------
TOTAL AIRLINES 200,141
---------------
MARINE 0.5%
Alexander & Baldwin,
Inc. .......................... 6,000 168,480
---------------
TOTAL MARINE 168,480
---------------
INDUSTRIAL CONGLOMERATES 0.3%
ALLETE, Inc. .................... 2,300 62,974
Teleflex, Inc. .................. 800 34,744
---------------
TOTAL INDUSTRIAL CONGLOMERATES 97,718
---------------
ELECTRICAL EQUIPMENT 0.0%
AMETEK, Inc. .................... 300 12,858
---------------
TOTAL ELECTRICAL EQUIPMENT 12,858
---------------
TOTAL INDUSTRIALS 3,430,771
---------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
UTILITIES 5.6%
MULTI-UTILITIES 2.7%
SCANA Corp.+ .................... 7,600 $ 260,300
Energy East Corp. ............... 11,010 246,954
MDU Resources Group,
Inc. .......................... 6,500 219,570
Sierra Pacific Resources
Corp.*+ ....................... 14,610 70,859
Westar Energy, Inc. ............. 3,000 55,350
Questar Corp. ................... 200 6,162
---------------
TOTAL MULTI-UTILITIES 859,195
---------------
ELECTRIC UTILITIES 2.3%
Wisconsin Energy Corp. .......... 8,500 259,845
Pepco Holdings, Inc. ............ 13,407 231,673
Great Plains Energy,
Inc.+ ......................... 6,500 197,080
DPL, Inc. ....................... 3,300 56,595
NSTAR ........................... 100 4,750
IDACORP, Inc. ................... 2 51
---------------
TOTAL ELECTRIC UTILITIES 749,994
---------------
GAS UTILITIES 0.6%
WGL Holdings, Inc. .............. 6,700 184,786
---------------
TOTAL GAS UTILITIES 184,786
---------------
TOTAL UTILITIES 1,793,975
---------------
ENERGY 5.6%
OIL & GAS 3.7%
Murphy Oil Corp.+ ............... 5,298 311,257
Pioneer Natural Resources
Co.* .......................... 9,200 234,232
Valero Energy Corp. ............. 5,100 195,177
Forest Oil Corp.*+ .............. 7,500 179,625
Overseas Shipholding
Group, Inc.+ .................. 6,300 162,855
Pogo Producing Co. .............. 2,000 90,560
XTO Energy, Inc. ................ 200 4,198
---------------
TOTAL OIL & GAS 1,177,904
---------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 13
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 1.9%
Weatherford International
Ltd.*+ ........................ 4,000 $ 151,120
Hanover Compressor
Co.* .......................... 14,110 139,689
ENSCO International,
Inc.+ ......................... 5,200 139,464
Pride International,
Inc.*+ ........................ 4,900 83,055
Tidewater, Inc. ................. 2,800 79,240
FMC Technologies,
Inc.* ......................... 2 43
---------------
TOTAL ENERGY EQUIPMENT
& SERVICES 592,611
---------------
TOTAL ENERGY 1,770,515
---------------
CONSUMER STAPLES 4.1%
FOOD PRODUCTS 2.0%
J.M. Smucker Co. ................ 5,000 210,800
Dean Foods Co.* ................. 6,100 189,283
Tyson Foods, Inc.--
Class A+ ...................... 13,210 186,657
Lancaster Colony Corp. .......... 1,800 71,586
---------------
TOTAL FOOD PRODUCTS 658,326
---------------
FOOD & DRUG RETAILING 1.1%
Whole Foods
Market, Inc.*+ ................ 3,800 209,684
Ruddick Corp. ................... 7,900 122,766
BJ's Wholesale Club,
Inc.* ......................... 400 7,748
---------------
TOTAL FOOD & DRUG RETAILING 340,198
---------------
HOUSEHOLD PRODUCTS 1.0%
Church & Dwight Co.,
Inc. .......................... 5,600 195,944
Dial Corp. ...................... 5,300 114,162
---------------
TOTAL HOUSEHOLD PRODUCTS 310,106
---------------
TOTAL CONSUMER STAPLES 1,308,630
---------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
MATERIALS 3.5%
CHEMICALS 1.1%
Albemarle Corp. ................. 6,300 $ 172,935
Cabot Corp. ..................... 2,600 74,126
Minerals Technologies,
Inc.+ ......................... 1,100 55,990
Crompton Corp. .................. 9,605 55,805
---------------
TOTAL CHEMICALS 358,856
---------------
PAPER & FOREST PRODUCTS 0.9%
Bowater, Inc.+ .................. 4,700 197,682
Potlatch Corp. .................. 2,800 83,216
---------------
TOTAL PAPER & FOREST PRODUCTS 280,898
---------------
METALS & MINING 0.9%
Peabody Energy Corp. ............ 5,000 156,850
Arch Coal, Inc.+ ................ 4,200 93,282
Carpenter Technology
Corp. ......................... 800 17,152
AK Steel Holding
Corp.* ........................ 3,900 7,800
---------------
TOTAL METALS & MINING 275,084
---------------
CONTAINERS & PACKAGING 0.6%
Longview Fibre Co. .............. 13,010 127,108
Sonoco Products Co. ............. 3,500 76,825
---------------
TOTAL CONTAINERS & PACKAGING 203,933
---------------
TOTAL MATERIALS 1,118,771
---------------
TELECOMMUNICATION SERVICES 0.5%
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.3%
Cincinnati Bell, Inc.* .......... 16,310 83,018
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 83,018
---------------
WIRELESS TELECOMMUNICATION
SERVICES 0.2%
Telephone & Data
Systems, Inc. ................. 1,300 73,502
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 73,502
---------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
14
MEDIUS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
(NOTE 1)
- -----------------------------------------------------------------------
TOTAL TELECOMMUNICATION SERVICES $ 156,520
---------------
TOTAL COMMON STOCKS
(Cost $24,335,734) ................ 27,449,849
---------------
FACE
AMOUNT
-------
FEDERAL AGENCY DISCOUNT NOTES 3.1%
Fannie Mae
1.05% due 10/01/03 .............. $1,000,000 1,000,000
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,000,000) ................. 1,000,000
---------------
REPURCHASE AGREEMENTS 11.0%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ................ 786,080 786,080
0.94% due 10/01/03 ................ 55,958 55,958
0.93% due 10/01/03 ................ 786,080 786,080
0.91% due 10/01/03 ................ 786,080 786,080
0.90% due 10/01/03 ................ 1,109,760 1,109,760
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,523,958) ................. 3,523,958
---------------
TOTAL INVESTMENTS 100%
(Cost $28,859,692) ................ $ 31,973,807
===============
- -----------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 S&P Mid Cap 400 Index
Futures Contracts (Aggregate Market
Value of Contracts $5,355,000) ... 21 $ (71,651)
===============
UNITS
-------
EQUITY INDEX SWAP AGREEMENT
October 2003 S&P Mid Cap 400 Index Swaps,
Maturing 10/29/03* (Notional Value
$14,431,877) ...................... 29,337 $ 612,148
===============
*PRICE RETURN BASED ON S&P MID CAP 400 INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 15
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS 70.9%
FINANCIALS 15.4%
BANKS 5.4%
S&T Bancorp, Inc. .............. 31,515 $ 898,178
South Financial Group,
Inc. ......................... 20,375 507,134
NetBank, Inc. .................. 31,620 393,669
Oriental Financial
Group, Inc. .................. 14,538 352,692
Flagstar Bancorp, Inc. ......... 14,750 338,513
Firstbank Corp./MI ............. 10,533 333,896
Allegiant Bancorp,
Inc. ......................... 16,261 328,472
WFS Financial, Inc.* ........... 7,236 267,949
Harbor Florida
Bancshares, Inc. ............. 8,784 234,181
WSFS Financial Corp. ........... 5,421 228,766
First Citizens
BancShares, Inc.--
Class A ...................... 2,058 217,531
Independent Bank
Corp./MA ..................... 8,175 209,362
MAF Bancorp, Inc. .............. 4,910 187,562
St. Francis Capital
Corp. ........................ 6,221 183,146
Irwin Financial Corp. .......... 6,970 169,371
CB Bancshares, Inc. ............ 2,462 150,800
Mercantile Bank Corp. .......... 4,510 149,732
Silicon Valley
Bancshares* .................. 4,270 117,980
Columbia Banking
Systems, Inc. ................ 6,530 114,797
R&G Financial Corp.--
Class B ...................... 3,100 90,520
IBERIABANK Corp. ............... 1,550 81,561
Provident Financial
Services, Inc. ............... 3,977 76,199
Umpqua Holdings
Corp. ........................ 3,100 58,993
Staten Island Bancorp,
Inc. ......................... 2,770 53,877
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TierOne Corp.* ................. 1,950 $ 41,048
Dime Community
Bancshares ................... 1,640 37,720
UCBH Holdings, Inc. ............ 1,240 37,485
GBC Bancorp/CA ................. 6 230
Sterling Bancshares,
Inc./TX ...................... 10 119
Waypoint Financial
Corp. ........................ 1 20
-----------------
TOTAL BANKS 5,861,503
-----------------
REAL ESTATE 3.8%
Anthracite Capital,
Inc. ......................... 94,139 908,441
Heritage Property
Investment Trust ............. 27,516 794,662
Universal Health Realty
Income Trust ................. 20,441 554,973
Health Care REIT, Inc. ......... 13,095 403,981
Pennsylvania Real
Estate Investment
Trust ........................ 11,656 389,893
Brandywine Realty
Trust ........................ 13,398 344,195
Corrections Corp. of
America* ..................... 13,508 333,242
Apex Mortgage Capital,
Inc. ......................... 37,538 201,954
Tanger Factory Outlet
Centers, Inc. ................ 1,549 56,926
Novastar Financial,
Inc. ......................... 910 52,298
Capital Automotive
REIT+ ........................ 1,410 43,019
-----------------
TOTAL REAL ESTATE 4,083,584
-----------------
INSURANCE 3.7%
LandAmerica Financial
Group, Inc. .................. 19,566 896,906
Stewart Information
Services Corp.* .............. 21,683 612,328
21st Century Insurance
Group ........................ 41,640 573,799
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
16
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
ProAssurance Corp.* ............ 17,304 $ 446,962
Hilb, Rogal &
Hamilton Co. ................. 12,087 375,181
U.S.I. Holdings
Corp.* ....................... 26,592 345,962
AmerUs Group Co.+ .............. 8,783 298,622
PMA Capital Corp.--
Class A+ ..................... 21,178 265,360
Commerce Group,
Inc. ......................... 5,421 205,781
-----------------
TOTAL INSURANCE 4,020,901
-----------------
DIVERSIFIED FINANCIALS 2.5%
W Holding Co., Inc. ............ 38,190 683,601
CompuCredit Corp.* ............. 34,716 607,530
GATX Corp. ..................... 15,560 329,094
Anchor BanCorp
Wisconsin, Inc. .............. 12,185 286,104
First Niagara Financial
Group, Inc. .................. 16,464 248,607
World Acceptance
Corp.* ....................... 13,297 180,174
New Century Financial
Corp. ........................ 5,330 150,946
Saxon Capital, Inc.* ........... 4,980 85,357
Investment Technology
Group, Inc.* ................. 4,202 80,594
-----------------
TOTAL DIVERSIFIED FINANCIALS 2,652,007
-----------------
TOTAL FINANCIALS 16,617,995
-----------------
INFORMATION TECHNOLOGY 15.1%
ELECTRONIC EQUIPMENT
& INSTRUMENTS 3.3%
Varian, Inc.* .................. 15,008 470,050
OSI Systems, Inc.* ............. 22,620 391,326
Methode Electronics,
Inc.--Class A ................ 30,065 355,068
DSP Group, Inc.* ............... 10,845 270,149
Fargo Electronics,
Inc.* ........................ 17,710 223,146
Checkpoint Systems,
Inc.* ........................ 12,791 202,098
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Benchmark
Electronics, Inc.* ........... 4,010 $ 169,503
SureBeam Corp.--
Class A*+ .................... 82,792 118,393
Lexar Media, Inc.* ............. 6,767 115,310
Cognex Corp. ................... 4,270 112,258
KEMET Corp.* ................... 7,981 101,678
Planar Systems, Inc.* .......... 4,680 100,386
Coherent, Inc.* ................ 4,007 98,692
Trimble Navigation
Ltd.* ........................ 4,210 97,461
FLIR Systems, Inc.* ............ 3,570 91,463
ScanSource, Inc.* .............. 2,420 88,427
TTM Technologies,
Inc.* ........................ 5,729 81,810
Itron, Inc.* ................... 4,008 80,441
Excel Technology,
Inc.* ........................ 2,457 61,425
Keithley Instruments,
Inc. ......................... 4,277 60,519
Research Frontiers,
Inc.*+ ....................... 4,270 48,973
Paxar Corp.* ................... 3,060 39,168
RadiSys Corp.* ................. 2,160 38,966
Daktronics, Inc.* .............. 2,420 38,744
Rogers Corp.* .................. 1,240 38,465
Veeco Instruments,
Inc.* ........................ 1,750 34,930
Metrologic Instruments,
Inc.* ........................ 910 32,751
-----------------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 3,561,600
-----------------
SEMICONDUCTOR EQUIPMENT
& PRODUCTS 2.9%
Cabot Microelectronics
Corp.*+ ...................... 7,777 433,490
Alliance Semiconductor
Corp.* ....................... 41,248 224,389
Standard Microsystems
Corp.* ....................... 7,170 193,447
Vitesse Semiconductor
Corp.* ....................... 28,751 184,006
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 17
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Zoran Corp.* ................... 8,615 $ 167,992
Rudolph Technologies,
Inc.* ........................ 8,620 166,452
Photronics, Inc.*+ ............. 6,837 145,355
OmniVision Technologies,
Inc.*+ ....................... 3,100 130,944
Cymer, Inc.* ................... 2,460 101,352
Siliconix, Inc.* ............... 1,950 97,968
Skyworks Solutions,
Inc.*+ ....................... 10,540 95,914
Entegris, Inc.*+ ............... 8,286 93,632
Power Integrations,
Inc.* ........................ 2,760 91,742
Exar Corp.* .................... 6,430 90,856
Diodes, Inc.* .................. 4,010 82,566
Kopin Corp.* ................... 10,140 70,270
Microsemi Corp.* ............... 4,510 68,732
GlobespanVirata, Inc.* ......... 8,925 64,439
Monolithic System
Technology, Inc.* ............ 7,578 63,731
Conexant Systems,
Inc.* ........................ 11,140 63,052
Ultratech, Inc.* ............... 2,050 57,851
Mykrolis Corp.* ................ 4,716 57,252
Lattice Semiconductor
Corp.* ....................... 7,477 53,161
Brooks Automation,
Inc.* ........................ 2,160 45,144
Actel Corp.*+ .................. 1,850 44,345
Cirrus Logic, Inc.* ............ 6,930 38,323
PDF Solutions, Inc.* ........... 3,270 36,788
Kulicke & Soffa
Industries, Inc.* 3,370 36,531
Xicor, Inc.* ................... 3,700 34,373
Semtech Corp.* ................. 1,850 34,151
Helix Technology
Corp. ........................ 2,060 33,722
Varian Semiconductor
Equipment Associates,
Inc.* ........................ 13 487
-----------------
TOTAL SEMICONDUCTOR
EQUIPMENT & PRODUCTS 3,102,457
-----------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 2.0%
Tellium, Inc.* ................. 216,196 $ 304,836
CommScope, Inc.* ............... 19,564 235,942
Adaptec, Inc.* ................. 28,754 217,380
Plantronics, Inc.* ............. 7,170 171,148
Sonus Networks,
Inc.*+ ....................... 23,840 165,211
PC-Tel, Inc.* .................. 12,050 128,573
Andrew Corp.*+ ................. 7,370 90,577
Echelon Corp.*+ ................ 7,239 86,144
F5 Networks, Inc.* ............. 4,210 81,000
Sycamore Networks,
Inc.* ........................ 15,050 73,745
Black Box Corp. ................ 1,750 69,668
New Focus, Inc.* ............... 14,908 66,937
Inter-Tel, Inc. ................ 2,460 60,393
Aspect Communications
Corp.* ....................... 6,837 56,952
Packeteer, Inc.* ............... 4,610 55,551
Artisan Components,
Inc.* ........................ 3,100 52,111
FalconStor Software,
Inc.*+ ....................... 8,183 51,226
Ditech Communications
Corp.* ....................... 5,830 51,187
Finisar Corp.*+ ................ 19,830 44,618
ViaSat, Inc.* .................. 2,460 43,813
Enterasys Networks,
Inc.* ........................ 10,334 41,336
SpectraLink Corp.* ............. 2,060 38,481
Symmetricom, Inc.* ............. 10 63
SCM Microsystems,
Inc.* ........................ 7 51
Concerto Software,
Inc.* ........................ 3 26
-----------------
TOTAL COMMUNICATIONS
EQUIPMENT 2,186,969
-----------------
COMPUTERS & PERIPHERALS 2.0%
Transmeta
Corp./DE* .................... 389,553 1,090,748
Hutchinson Technology,
Inc.* ........................ 5,117 169,373
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
18
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Avid Technology,
Inc.*+ ....................... 3,060 $ 161,690
ActivCard Corp.* ............... 18,720 153,504
Silicon Graphics,
Inc.*+ ....................... 147,535 141,634
Electronics for Imaging,
Inc.* ........................ 5,330 124,296
Komag, Inc.* ................... 3,978 69,695
Dot Hill Systems
Corp.* ....................... 4,370 60,131
Rainbow Technologies,
Inc.* ........................ 6,267 57,280
Stratasys, Inc.* ............... 1,110 47,308
Overland Storage,
Inc.* ........................ 2,420 35,695
Neoware Systems,
Inc.* ........................ 2,050 34,994
Innovex, Inc./MN* .............. 2,960 29,452
-----------------
TOTAL COMPUTERS
& PERIPHERALS 2,175,800
-----------------
SOFTWARE 2.0%
THQ, Inc.* ..................... 16,264 267,057
Lawson Software,
Inc.* ........................ 19,120 135,561
Atari, Inc.* ................... 29,497 120,643
Kronos, Inc./MA* ............... 2,250 119,047
Sybase, Inc.* .................. 6,969 118,543
Renaissance Learning,
Inc.*+ ....................... 4,680 110,448
ANSYS, Inc.* ................... 2,860 101,644
BARRA, Inc.* ................... 2,350 88,242
MICROS Systems,
Inc.* ........................ 2,566 87,629
RSA Security, Inc.* ............ 6,130 87,536
StorageNetworks,
Inc.* ........................ 49,030 80,409
Ascential Software
Corp.* ....................... 4,010 74,305
Mentor Graphics
Corp.*+ ...................... 4,210 73,801
PracticeWorks, Inc.* ........... 3,100 66,557
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Take-Two Interactive
Software, Inc.* .............. 1,640 $ 56,039
Legato Systems, Inc.* .......... 4,720 52,911
Midway Games,
Inc.*+ ....................... 17,569 52,004
Intervoice, Inc.* .............. 5,424 48,491
Sonic Solutions, Inc.* ......... 3,170 44,158
Epicor Software
Corp.* ....................... 4,810 43,001
Portal Software, Inc.* ......... 2,998 42,722
Progress Software
Corp.* ....................... 1,950 41,925
MicroStrategy, Inc.--
Class A* ..................... 910 41,869
Micromuse, Inc.* ............... 4,720 38,610
Systems & Computer
Technology Corp.* ............ 3,570 37,235
SAFLINK Corp.* ................. 7,980 36,708
Parametric Technology
Corp.* ....................... 11,650 36,348
SPSS, Inc.* .................... 2,050 34,584
Tradestation Group,
Inc.* ........................ 3,870 28,917
-----------------
TOTAL SOFTWARE 2,166,944
-----------------
INTERNET SOFTWARE & SERVICES 1.6%
EarthLink, Inc.* ............... 35,827 294,856
Overture Services,
Inc.* ........................ 9,325 247,019
Ariba, Inc.* ................... 63,130 191,915
S1 Corp.* ...................... 28,551 144,183
United Online, Inc.* ........... 3,800 131,936
AsiaInfo Holdings,
Inc.* ........................ 13,090 88,227
j2 Global
Communications,
Inc.* ........................ 2,250 85,118
Ask Jeeves, Inc.*+ ............. 4,410 76,734
Akamai Technologies,
Inc.* ........................ 17,574 75,392
Sohu.com, Inc.*+ ............... 2,420 75,262
Internet Security
Systems, Inc.* ............... 4,410 55,125
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 19
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
CNET Networks,
Inc.* ........................ 7,577 $ 53,645
Websense, Inc.* ................ 2,160 45,943
TheStreet.com, Inc.* ........... 8,217 36,977
ValueClick, Inc.* .............. 4,210 35,406
FindWhat.com* .................. 1,750 30,240
PEC Solutions, Inc.* ........... 1,950 28,782
-----------------
TOTAL INTERNET SOFTWARE
& SERVICES 1,696,760
-----------------
IT CONSULTING & SERVICES 1.3%
MPS Group, Inc.* ............... 20,133 181,197
eFunds Corp.* .................. 14,340 177,099
CSG Systems
International, Inc.* ......... 9,530 140,758
Intrado, Inc.* ................. 5,330 121,417
ManTech International
Corp.--Class A* .............. 3,870 96,286
Keane, Inc.* ................... 7,377 94,278
SRA International,
Inc.--Class A* ............... 2,465 92,265
CompuCom Systems,
Inc.* ........................ 18,928 79,498
MedQuist, Inc.* ................ 4,008 77,595
Tier Technologies,
Inc.--Class B* ............... 7,244 64,544
CACI International,
Inc.--Class A* ............... 1,450 62,133
Titan Corp.* ................... 2,419 50,412
Gartner, Inc.--
Class A* ..................... 4,412 48,620
Sapient Corp.* ................. 12,356 44,358
iPayment Holdings,
Inc.* ........................ 1,550 35,278
SYKES Enterprises,
Inc.* ........................ 5,220 34,556
Carreker Corp.* ................ 4 32
-----------------
TOTAL IT CONSULTING & SERVICES 1,400,326
-----------------
TOTAL INFORMATION
TECHNOLOGY 16,290,856
-----------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
CONSUMER DISCRETIONARY 10.2%
SPECIALTY RETAIL 3.0%
Hancock Fabrics,
Inc./DE ...................... 32,021 $ 505,291
Movie Gallery, Inc.* ........... 14,307 281,133
Building Material
Holding Corp. ................ 18,817 246,503
Pacific Sunwear of
California, Inc.* ............ 8,720 180,155
Aaron Rents, Inc. .............. 8,080 169,276
United Auto Group,
Inc.* ........................ 6,833 157,159
Footstar, Inc.* ................ 19,666 132,942
West Marine, Inc.* ............. 6,837 130,245
Group 1 Automotive,
Inc.* ........................ 3,060 105,692
Electronics Boutique
Holdings Corp.* .............. 3,670 104,852
PETCO Animal
Supplies, Inc.* .............. 3,270 102,024
Guitar Center, Inc.* ........... 3,170 101,947
Christopher & Banks
Corp. ........................ 4,270 101,882
Stage Stores, Inc.* ............ 3,800 96,824
Monro Muffler Brake,
Inc.* ........................ 3,165 93,684
Friedman's, Inc.--
Class A ...................... 4,978 69,443
Lithia Motors, Inc.--
Class A ...................... 3,402 67,938
Finish Line, Inc.--
Class A* ..................... 2,420 63,646
Hibbett Sporting
Goods, Inc.* ................. 2,460 58,843
Aeropostale, Inc.* ............. 2,050 55,453
Select Comfort
Corp.* ....................... 2,050 54,325
Mothers Work, Inc.* ............ 1,640 49,774
A.C. Moore Arts &
Crafts, Inc.* ................ 2,050 45,674
Childrens Place Retail
Stores, Inc.* ................ 2,660 45,619
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
20
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Zale Corp.* .................... 810 $ 35,972
Pomeroy IT Solutions,
Inc. ......................... 2,660 33,782
American Eagle
Outfitters, Inc.*+ ........... 2,250 33,435
Cato Corp.--Class A ............ 1,640 33,079
O'Reilly Automotive,
Inc.* ........................ 10 368
Tractor Supply Co.* ............ 10 328
AnnTaylor Stores
Corp.* ....................... 10 321
Regis Corp. .................... 10 321
Men's Wearhouse,
Inc.* ........................ 10 257
-----------------
TOTAL SPECIALTY RETAIL 3,158,187
-----------------
HOTELS RESTAURANTS & LEISURE 2.1%
Sonic Corp.* ................... 18,517 468,110
P.F. Chang's China
Bistro, Inc.*+ ............... 5,320 241,262
Steak n Shake Co.* ............. 15,762 234,854
Ryan's Family Steak
Houses, Inc.* ................ 14,915 190,763
Panera Bread Co.--
Class A* ..................... 3,665 150,118
Vail Resorts, Inc.* ............ 8,389 119,963
Shuffle Master, Inc.*+ ......... 2,960 80,453
Jack in the Box, Inc.* ......... 3,970 70,666
Landry's Restaurants,
Inc. ......................... 3,400 70,040
Rare Hospitality
International, Inc.* ......... 2,770 69,001
Papa John's International,
Inc.*+ ....................... 2,770 68,724
Argosy Gaming Co.* ............. 2,660 64,904
Ameristar Casinos,
Inc.* ........................ 2,460 61,598
California Pizza Kitchen,
Inc.* ........................ 3,370 58,638
CKE Restaurants,
Inc.* ........................ 8,990 57,985
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Scientific Games
Corp.--Class A* .............. 4,370 $ 49,862
Isle of Capri Casinos,
Inc.* ........................ 2,350 46,553
Lone Star Steakhouse
& Saloon, Inc. ............... 2,160 45,144
Red Robin Gourmet
Burgers, Inc.* ............... 1,710 43,537
Six Flags, Inc.* ............... 7,577 39,855
IHOP Corp. ..................... 1,110 36,463
CEC Entertainment,
Inc.* ........................ 10 392
WMS Industries, Inc.* .......... 10 227
Aztar Corp.* ................... 10 177
Bally Total Fitness
Holding Corp.* ............... 10 86
Pinnacle Entertainment,
Inc.* ........................ 10 70
-----------------
TOTAL HOTELS RESTAURANTS
& LEISURE 2,269,445
-----------------
MEDIA 2.0%
Harris Interactive,
Inc.* ........................ 57,910 407,686
Fidelity National
Information
Solutions, Inc.* ............. 13,408 333,189
Salem Communications
Corp. /DE--
Class A* ..................... 14,745 285,906
Emmis Communications
Corp.--Class A* .............. 11,750 237,115
AMC Entertainment,
Inc.* ........................ 13,906 186,340
PRIMEDIA, Inc.* ................ 51,277 146,139
ADVO, Inc.*+ ................... 3,270 136,130
Gray Television, Inc. .......... 7,370 86,082
Paxson Communications
Corp.* ....................... 14,546 72,148
ProQuest Co.* .................. 2,349 61,779
Charter Communications,
Inc.--Class A* ............... 14,750 60,770
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 21
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Journal Register Co.* .......... 3,092 $ 57,975
Digital Generation
Systems, Inc.* ............... 17,914 39,035
-----------------
TOTAL MEDIA 2,110,294
-----------------
HOUSEHOLD DURABLES 1.3%
Kimball International,
Inc.--Class B ................ 34,709 508,834
Yankee Candle Co.,
Inc.* ........................ 10,138 258,316
Beazer Homes USA,
Inc.*+ ....................... 2,418 204,079
Libbey, Inc. ................... 5,923 164,719
Champion Enterprises,
Inc.* ........................ 24,440 155,194
Hooker Furniture
Corp. ........................ 1,643 57,456
Fleetwood Enterprises,
Inc.*+ ....................... 4,510 41,808
Brookfield Homes
Corp. ........................ 2,062 38,209
Applica, Inc. .................. 25 151
-----------------
TOTAL HOUSEHOLD DURABLES 1,428,766
-----------------
AUTO COMPONENTS 0.5%
Standard Motor
Products, Inc. ............... 20,975 211,847
Tower Automotive,
Inc.* ........................ 23,033 103,649
Aftermarket Technology
Corp.* ....................... 7,574 86,419
Goodyear Tire &
Rubber Co. ................... 8,920 58,604
Superior Industries
International, Inc. .......... 1,410 57,176
Keystone Automotive
Industries, Inc.* ............ 1,850 40,145
-----------------
TOTAL AUTO COMPONENTS 557,840
-----------------
TEXTILES & APPAREL 0.5%
Stride Rite Corp. .............. 28,243 305,024
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Warnaco Group, Inc.* ........... 8,177 $ 127,480
DHB Industries, Inc.* .......... 9,726 42,308
Brown Shoe Co., Inc. ........... 1,240 39,308
K-Swiss, Inc.--
Class A ...................... 1 36
-----------------
TOTAL TEXTILES & APPAREL 514,156
-----------------
LEISURE EQUIPMENT & PRODUCTS 0.3%
SCP Pool Corp.* ................ 6,160 171,371
K2, Inc.* ...................... 7,168 106,445
Oakley, Inc.* .................. 6,669 66,690
Nautilus Group, Inc. ........... 10 126
JAKKS Pacific, Inc.* ........... 10 122
Meade Instruments
Corp.* ....................... 5 17
-----------------
TOTAL LEISURE EQUIPMENT
& PRODUCTS 344,771
-----------------
INTERNET & CATALOG RETAIL 0.3%
ValueVision Media, Inc.--
Class A* ..................... 15,653 249,039
Netflix, Inc.*+ ................ 2,460 82,681
Insight Enterprises,
Inc.* ........................ 10 152
-----------------
TOTAL INTERNET &
CATALOG RETAIL 331,872
-----------------
MULTILINE RETAIL 0.1%
Fred's, Inc. ................... 4,409 145,321
-----------------
TOTAL MULTILINE RETAIL 145,321
-----------------
AUTOMOBILES 0.1%
Thor Industries, Inc. .......... 2,460 132,889
-----------------
TOTAL AUTOMOBILES 132,889
-----------------
DISTRIBUTORS 0.0%
Handleman Co. .................. 2,154 36,359
-----------------
TOTAL DISTRIBUTORS 36,359
-----------------
TOTAL CONSUMER
DISCRETIONARY 11,029,900
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
22
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
HEALTH CARE 10.2%
BIOTECHNOLOGY 4.2%
deCODE genetics,
Inc.* ........................ 183,060 $ 862,213
CuraGen Corp.* ................. 100,275 504,383
Applera Corp.--
Celera Genomics
Group* ....................... 33,370 390,095
Lexicon Genetics,
Inc./TX* ..................... 72,247 372,794
Tularik, Inc.* ................. 17,402 171,584
InterMune, Inc.* ............... 8,620 164,470
SciClone
Pharmaceuticals,
Inc.* ........................ 20,060 158,474
Martek Biosciences
Corp.* ....................... 2,857 150,478
ARIAD Pharmaceuticals,
Inc.* ........................ 24,143 145,341
Abgenix, Inc.*+ ................ 9,530 138,090
Geron Corp.*+ .................. 9,830 134,671
Gen-Probe, Inc.* ............... 2,350 127,299
Regeneron
Pharmaceuticals,
Inc.* ........................ 6,837 120,810
Genencor International,
Inc.* ........................ 7,570 118,773
Isis Pharmaceuticals,
Inc.* ........................ 15,050 98,126
AVANT
Immunotherapeutics,
Inc.* ........................ 30,297 73,016
Nuvelo, Inc.* .................. 25,389 66,519
Cell Therapeutics,
Inc.*+ ....................... 5,730 65,150
Ligand Pharmaceuticals,
Inc.--Class B* ............... 4,720 60,841
Encysive
Pharmaceuticals,
Inc.* ........................ 9,496 59,920
Transkaryotic Therapies,
Inc.* ........................ 5,330 55,698
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Dendreon Corp.* ................ 6,130 $ 54,250
OSI Pharmaceuticals,
Inc.* ........................ 1,640 53,251
Peregrine
Pharmaceuticals,
Inc.*+ ....................... 23,640 50,826
Zymogenetics, Inc.* ............ 3,100 45,415
Enzo Biochem, Inc.* ............ 2,160 42,142
NeoPharm, Inc.*+ ............... 2,770 41,550
Digene Corp.* .................. 1,010 41,269
ILEX Oncology, Inc.* ........... 2,460 40,861
La Jolla Pharmaceutical
Co.* ......................... 9,830 38,828
Medarex, Inc.* ................. 6,527 38,705
ImmunoGen, Inc.* ............... 8,381 37,295
AVI BioPharma, Inc.* ........... 7,070 36,552
-----------------
TOTAL BIOTECHNOLOGY 4,559,689
-----------------
HEALTH CARE EQUIPMENT & SUPPLIES 3.6%
CardioDynamics
International
Corp.* ....................... 154,413 693,314
SurModics, Inc.*+ .............. 15,970 428,635
Ventana Medical
Systems, Inc.* ............... 9,635 388,290
Thoratec Corp.* ................ 15,964 271,228
Cyberonics, Inc.* .............. 7,887 243,393
Advanced
Neuromodulation
Systems, Inc.* ............... 5,320 212,268
Kensey Nash Corp.* ............. 8,619 202,374
Viasys Healthcare,
Inc.* ........................ 9,833 198,627
Datascope Corp. ................ 5,330 163,844
Dade Behring Holdings,
Inc.* ........................ 4,810 135,882
Sybron Dental
Specialties, Inc.* ........... 5,020 125,851
Nektar Therapeutics* ........... 9,090 116,352
INAMED Corp.* .................. 1,310 96,219
Osteotech, Inc.* ............... 10,540 86,323
Laserscope, Inc.* .............. 7,274 85,470
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 23
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Intuitive Surgical,
Inc.* ........................ 4,913 $ 81,949
Cerus Corp.* ................... 13,500 62,505
Candela Corp.* ................. 4,510 57,548
BioLase Technology,
Inc.* ........................ 4,980 56,822
Align Technology,
Inc.* ........................ 4,410 55,169
TriPath Imaging, Inc.* ......... 5,659 49,233
I-STAT Corp.* .................. 3,572 47,758
EPIX Medical, Inc.* ............ 2,050 34,891
CONMED Corp.* .................. 4 83
-----------------
TOTAL HEALTH CARE EQUIPMENT
& SUPPLIES 3,894,028
-----------------
HEALTH CARE PROVIDERS & SERVICES 1.2%
NDCHealth Corp. ................ 22,928 480,342
Cerner Corp.*+ ................. 8,785 271,193
Accredo Health, Inc.* .......... 4,410 123,436
Odyssey Healthcare,
Inc.* ........................ 3,400 101,388
Vital Images, Inc.* ............ 4,408 82,513
United Surgical
Partners
International, Inc.* ......... 2,350 66,505
eResearch Technology,
Inc.* ........................ 1,850 64,436
IDX Systems Corp.* ............. 2,250 52,020
VistaCare, Inc.--
Class A* ..................... 1,240 38,812
Mid Atlantic Medical
Services, Inc.* .............. 10 514
Priority Healthcare
Corp.--Class B* .............. 10 205
Hooper Holmes, Inc. ............ 10 67
-----------------
TOTAL HEALTH CARE PROVIDERS
& SERVICES 1,281,431
-----------------
PHARMACEUTICALS 1.2%
Guilford
Pharmaceuticals,
Inc.*+ ....................... 59,425 367,841
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
CollaGenex
Pharmaceuticals,
Inc.*+ ....................... 31,315 $ 336,010
Bentley
Pharmaceuticals,
Inc.* ........................ 7,777 126,376
Medicines Co.* ................. 4,510 117,260
MGI Pharma, Inc.* .............. 1,850 72,631
Kos Pharmaceuticals,
Inc.* ........................ 1,850 63,640
Durect Corp.*+ ................. 17,918 60,204
Inspire
Pharmaceuticals,
Inc.* ........................ 2,660 45,752
Esperion Therapeutics,
Inc.* ........................ 2,155 41,764
-----------------
TOTAL PHARMACEUTICALS 1,231,478
-----------------
TOTAL HEALTH CARE 10,966,626
-----------------
INDUSTRIALS 10.0%
MACHINERY 2.4%
Lindsay Manufacturing
Co. .......................... 27,551 553,775
Tecumseh Products
Co.--Class A ................. 12,998 484,955
Kadant, Inc.* .................. 13,086 250,728
Mueller Industries,
Inc.* ........................ 8,688 221,110
Briggs & Stratton
Corp. ........................ 2,760 162,178
ESCO Technologies,
Inc.* ........................ 2,765 125,171
Milacron, Inc. ................. 51,784 119,103
Flowserve Corp.* ............... 4,682 95,045
EnPro Industries,
Inc.* ........................ 8,077 77,943
Dionex Corp.* .................. 1,410 55,498
Ceradyne, Inc.* ................ 1,710 44,238
Lydall, Inc.* .................. 3,400 40,834
Thomas Industries,
Inc. ......................... 1,410 40,213
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 10.
See Notes to Financial Statements.
24
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Stewart & Stevenson
Services, Inc. ............... 2,560 $ 38,451
Albany International
Corp.--Class A ............... 1,240 38,242
Robbins & Myers, Inc. .......... 1,710 38,030
Reliance Steel &
Aluminum Co. ................. 1,710 37,945
Kaydon Corp. ................... 1,550 36,797
Timken Co. ..................... 2,350 35,814
CLARCOR, Inc. .................. 910 35,490
Joy Global, Inc.* .............. 2,250 35,325
Gardner Denver, Inc.* .......... 1,640 34,456
-----------------
TOTAL MACHINERY 2,601,341
-----------------
COMMERCIAL SERVICES & SUPPLIES 2.4%
Imagistics International,
Inc.* ........................ 8,996 260,704
Spherion Corp.* ................ 30,502 212,294
Consolidated Graphics,
Inc.* ........................ 5,518 140,323
Brink's Co. .................... 6,833 118,621
ABM Industries, Inc. ........... 8,220 116,313
United Rentals, Inc.* .......... 7,169 115,349
Cornell Cos., Inc.* ............ 6,762 111,235
United Stationers,
Inc.* ........................ 2,350 88,548
Korn/Ferry
International, Inc.* ......... 10,433 86,072
John H. Harland Co. ............ 2,760 73,057
CoStar Group, Inc.* ............ 2,563 66,638
Heidrick & Struggles
International, Inc.* ......... 3,870 65,519
SOURCECORP, Inc.* .............. 2,660 61,845
Exult, Inc.* ................... 7,170 57,647
Tetra Tech, Inc.* .............. 2,660 52,961
School Specialty, Inc.* ........ 1,750 49,367
NCO Group, Inc.* ............... 1,850 43,419
CPI Corp. ...................... 2,355 43,332
Ionics, Inc.* .................. 1,750 42,805
CDI Corp. ...................... 1,550 41,896
Watson Wyatt &
Company
Holdings* .................... 1,850 41,644
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Century Business
Services, Inc.* .............. 9,800 $ 41,552
Pre-Paid Legal
Services, Inc.*+ ............. 1,710 40,048
G & K Services,
Inc.--Class A ................ 1,140 39,900
Mobile Mini, Inc.* ............. 2,049 39,525
Arbitron, Inc.* ................ 1,110 39,183
Angelica Corp. ................. 2,050 38,950
Waste Connections,
Inc.* ........................ 1,110 38,950
Rollins, Inc. .................. 2,153 38,410
Kroll, Inc.*+ .................. 2,050 38,130
Portfolio Recovery
Associates, Inc.* ............ 1,450 36,859
Roto-Rooter, Inc. .............. 1,010 35,906
Standard Register Co. .......... 2,160 35,856
Sylvan Learning
Systems, Inc.* ............... 1,310 35,737
Brady Corp.--Class A ........... 1,110 35,309
Insurance Auto Auctions,
Inc.* ........................ 3,100 34,875
Navigant Consulting,
Inc.* ........................ 2,565 31,575
Central Parking Corp. .......... 2,559 31,348
-----------------
TOTAL COMMERCIAL SERVICES
& SUPPLIES 2,521,702
-----------------
ROAD & RAIL 2.1%
Covenant Transport,
Inc.--Class A* ............... 58,217 1,071,193
Dollar Thrifty
Automotive Group,
Inc.* ........................ 18,111 411,482
Kansas City Southern* .......... 16,770 185,644
Florida East Coast
Industries, Inc. ............. 6,429 184,834
Roadway Corp. .................. 2,760 134,605
Arkansas Best Corp. ............ 4,817 132,467
Yellow Corp.* .................. 1,410 42,131
USF Corp. ...................... 1,240 39,023
Heartland Express, Inc. ........ 9 216
-----------------
TOTAL ROAD & RAIL 2,201,595
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 25
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
AIRLINES 0.8%
SkyWest, Inc. .................. 15,150 $ 262,398
Continental Airlines,
Inc.--Class B*+ .............. 9,926 164,573
AMR Corp.*+ .................... 13,294 152,216
AirTran Holdings,
Inc.* ........................ 5,618 94,102
Alaska Air Group,
Inc.* ........................ 2,357 65,572
America West Holdings
Corp.--Class B*+ ............. 5,930 57,699
Frontier Airlines, Inc.* ....... 3,100 51,026
Atlantic Coast Airlines
Holdings, Inc.* .............. 4,910 41,784
-----------------
TOTAL AIRLINES 889,370
-----------------
ELECTRICAL EQUIPMENT 0.8%
Acuity Brands, Inc. ............ 16,769 302,848
Global Power Equipment
Group, Inc.* ................. 52,590 277,149
Belden, Inc. ................... 3,700 64,639
Valence Technology,
Inc.* ........................ 11,788 40,197
Power-One, Inc.* ............... 3,870 39,822
MagneTek, Inc.* ................ 7,682 38,026
Baldor Electric Co. ............ 1,750 36,943
Regal-Beloit Corp. ............. 1,710 34,884
II-VI, Inc.* ................... 1,550 30,985
-----------------
TOTAL ELECTRICAL EQUIPMENT 865,493
-----------------
AEROSPACE & DEFENSE 0.4%
DRS Technologies,
Inc.* ........................ 6,427 155,084
Triumph Group,
Inc.* ........................ 1,550 46,190
Armor Holdings,
Inc.* ........................ 2,560 42,880
Kaman Corp.--
Class A ...................... 3,060 39,658
Alliant Techsystems,
Inc.* ........................ 810 38,920
Aviall, Inc.* .................. 3,060 37,883
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Esterline Technologies
Corp.* ....................... 1,950 $ 37,615
Teledyne Technologies,
Inc.* ........................ 2,560 37,248
-----------------
TOTAL AEROSPACE & DEFENSE 435,478
-----------------
CONSTRUCTION & ENGINEERING 0.3%
Washington Group
International, Inc.* ......... 8,280 223,146
Insituform
Technologies,
Inc.--Class A* ............... 3,870 68,731
Quanta Services, Inc.* ......... 4,273 35,338
-----------------
TOTAL CONSTRUCTION
& ENGINEERING 327,215
-----------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
Hughes Supply, Inc. ............ 5,620 182,369
Aceto Corp. .................... 3,800 53,200
Lawson Products, Inc. .......... 1,410 37,858
Applied Industrial
Technologies, Inc. ........... 1,710 33,978
-----------------
TOTAL TRADING COMPANIES
& DISTRIBUTORS 307,405
-----------------
INDUSTRIAL CONGLOMERATES 0.2%
United Capital Corp. ........... 7,974 143,532
Tredegar Corp. ................. 3,370 50,718
Standex International
Corp. ........................ 1,710 41,553
-----------------
TOTAL INDUSTRIAL
CONGLOMERATES 235,803
-----------------
BUILDING PRODUCTS 0.2%
USG Corp.* ..................... 4,372 75,373
ElkCorp ........................ 2,250 53,010
American Woodmark
Corp. ........................ 810 36,255
Simpson Manufacturing
Co., Inc.* ................... 840 34,348
-----------------
TOTAL BUILDING PRODUCTS 198,986
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
26
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
MARINE 0.1%
Alexander & Baldwin,
Inc. ......................... 3,100 $ 87,048
Kirby Corp.* ................... 1,310 37,597
-----------------
TOTAL MARINE 124,645
-----------------
TOTAL INDUSTRIALS 10,709,033
-----------------
MATERIALS 2.9%
CHEMICALS 1.6%
Arch Chemicals, Inc. ........... 24,445 508,456
Headwaters, Inc.*+ ............. 25,891 416,845
Great Lakes Chemical
Corp. ........................ 17,913 360,230
FMC Corp.* ..................... 10,736 270,547
Wellman, Inc. .................. 13,294 99,838
W.R. Grace & Co.* .............. 14,211 44,054
Scotts Co.--Class A* ........... 10 547
MacDermid, Inc. ................ 10 265
H.B. Fuller Co. ................ 10 243
Georgia Gulf Corp. ............. 10 234
Cambrex Corp. .................. 10 227
OM Group, Inc.* ................ 10 146
Crompton Corp. ................. 20 116
PolyOne Corp. .................. 20 79
-----------------
TOTAL CHEMICALS 1,701,827
-----------------
METALS & MINING 0.6%
USEC, Inc. ..................... 24,146 157,673
Liquidmetal
Technologies,
Inc.*+ ....................... 37,878 119,316
Steel Dynamics, Inc.* .......... 6,767 102,452
Massey Energy Co. .............. 6,670 88,711
Royal Gold, Inc.+ .............. 3,370 61,671
Commercial Metals
Co. .......................... 3,270 60,070
Arch Coal, Inc.+ ............... 2,660 59,079
Hecla Mining Co.* .............. 5,830 30,549
Century Aluminum
Co.* ......................... 29 315
A.M. Castle & Co.* ............. 40 178
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Ryerson Tull, Inc. ............. 10 $ 78
Allegheny Technologies,
Inc. ......................... 10 65
Commonwealth
Industries, Inc. ............. 10 47
-----------------
TOTAL METALS & MINING 680,204
-----------------
PAPER & FOREST PRODUCTS 0.5%
Potlatch Corp. ................. 9,093 270,244
Louisiana-Pacific
Corp.*+ ...................... 15,151 208,781
Buckeye Technologies,
Inc.* ........................ 28 255
Pope & Talbot, Inc. ............ 3 45
-----------------
TOTAL PAPER & FOREST PRODUCTS 479,325
-----------------
CONTAINERS & PACKAGING 0.2%
Crown Holdings,
Inc.* ........................ 27,110 182,992
AptarGroup, Inc. ............... 10 367
Rock-Tenn Co.--
Class A ...................... 10 146
Myers Industries, Inc. ......... 10 100
-----------------
TOTAL CONTAINERS & PACKAGING 183,605
-----------------
CONSTRUCTION MATERIALS 0.0%
Ameron International
Corp. ........................ 1,143 37,730
Florida Rock Industries,
Inc. ......................... 10 496
-----------------
TOTAL CONSTRUCTION MATERIALS 38,226
-----------------
TOTAL MATERIALS 3,083,187
-----------------
ENERGY 2.6%
OIL & GAS 2.6%
Overseas Shipholding
Group, Inc.+ ................. 39,189 1,013,036
Energy Partners Ltd.* .......... 74,571 829,229
Evergreen Resources,
Inc.*+ ....................... 19,258 519,966
Cimarex Energy Co.* ............ 3,400 66,640
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 27
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Spinnaker Exploration
Co.* ......................... 1,750 $ 42,000
Nuevo Energy Co.* .............. 2,160 39,247
Vintage Petroleum,
Inc. ......................... 3,470 37,753
Cabot Oil & Gas
Corp. ........................ 1,450 37,700
Frontier Oil Corp. ............. 2,560 37,632
Remington Oil & Gas
Corp.* ....................... 2,060 37,389
Tesoro Petroleum
Corp.* ....................... 4,376 37,021
Stone Energy Corp.* ............ 1,010 35,633
Newfield Exploration
Co.* ......................... 10 386
-----------------
TOTAL OIL & GAS 2,733,632
-----------------
ENERGY EQUIPMENT & SERVICES 0.0%
Unit Corp.* .................... 1,750 32,970
Input/Output, Inc.* ............ 34 133
Cal Dive International,
Inc.* ........................ 4 78
GulfMark Offshore,
Inc.* ........................ 1 14
-----------------
TOTAL ENERGY EQUIPMENT
& SERVICES 33,195
-----------------
TOTAL ENERGY 2,766,827
-----------------
CONSUMER STAPLES 2.2%
FOOD PRODUCTS 1.2%
Peet's Coffee & Tea,
Inc.*+ ....................... 22,827 446,268
Sanderson Farms,
Inc. ......................... 10,833 340,806
Pilgrims Pride Corp.--
Class B ...................... 13,604 170,050
Chiquita Brands
International, Inc.* ........... 6,225 110,182
Central Garden & Pet
Co.* ......................... 3,370 88,024
Lance, Inc. .................... 3,870 38,468
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Delta and Pine Land
Co. .......................... 1,550 $ 35,666
-----------------
TOTAL FOOD PRODUCTS 1,229,464
-----------------
FOOD & DRUG RETAILING 0.4%
Central European
Distribution
Corp.*+ ...................... 7,470 204,305
United Natural Foods,
Inc.* ........................ 3,670 121,807
7-Eleven, Inc.* ................ 4,417 60,645
Duane Reade, Inc.* ............. 2,250 35,888
Casey's General Stores,
Inc. ......................... 2,460 34,514
Performance Food
Group Co.* ................... 10 407
-----------------
TOTAL FOOD & DRUG RETAILING 457,566
-----------------
BEVERAGES 0.4%
Coca-Cola Bottling Co.
Consolidated ................. 7,677 385,001
-----------------
TOTAL BEVERAGES 385,001
-----------------
PERSONAL PRODUCTS 0.1%
USANA Health
Sciences, Inc.* .............. 2,760 133,170
-----------------
TOTAL PERSONAL PRODUCTS 133,170
-----------------
TOBACCO 0.1%
Vector Group Ltd. .............. 6,428 92,563
-----------------
TOTAL TOBACCO 92,563
-----------------
HOUSEHOLD PRODUCTS 0.0%
WD-40 Co. ...................... 1,310 41,514
-----------------
TOTAL HOUSEHOLD PRODUCTS 41,514
-----------------
TOTAL CONSUMER STAPLES 2,339,278
-----------------
UTILITIES 1.4%
GAS UTILITIES 0.8%
Northwest Natural
Gas Co. ...................... 10,340 299,860
Atmos Energy Corp. ............. 12,050 288,477
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
28
MEKROS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
Laclede Group, Inc. ............ 7,982 $ 215,594
Cascade Natural Gas
Corp. ........................ 2,050 40,180
Southern Union Co.* ............ 2,350 39,950
UGI Corp. ...................... 1,240 35,873
-----------------
TOTAL GAS UTILITIES 919,934
-----------------
ELECTRIC UTILITIES 0.3%
Allegheny Energy,
Inc.* ........................ 11,779 107,660
El Paso Electric Co.* .......... 6,368 73,550
CMS Energy Corp. ............... 6,054 44,618
UIL Holdings Corp. ............. 1,110 38,839
Central Vermont Public
Service Corp. ................ 1,750 38,815
Empire District Electric
Co. .......................... 1,750 38,500
-----------------
TOTAL ELECTRIC UTILITIES 341,982
-----------------
MULTI-UTILITIES 0.2%
Sierra Pacific Resources
Corp.*+ ...................... 35,590 172,612
-----------------
TOTAL MULTI-UTILITIES 172,612
-----------------
WATER UTILITIES 0.1%
California Water
Service Group ................ 2,466 63,647
American States Water
Co. .......................... 1,550 36,534
-----------------
TOTAL WATER UTILITIES 100,181
-----------------
TOTAL UTILITIES 1,534,709
-----------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TELECOMMUNICATION SERVICES 0.9%
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.6%
Cincinnati Bell, Inc.* ......... 38,188 $ 194,377
Golden Telecom, Inc.* .......... 6,221 170,082
McLeodUSA, Inc.--
Class A*+ .................... 60,802 84,515
Primus
Telecommunications
Group, Inc.*+ ................ 11,140 75,195
General Communication,
Inc.--Class A* ............... 4,910 40,851
Talk America Holdings,
Inc.* ........................ 3,060 34,915
-----------------
TOTAL DIVERSIFIED
TELECOMMUNICATION
SERVICES 599,935
-----------------
WIRELESS TELECOMMUNICATION
SERVICES 0.3%
Boston
Communications
Group, Inc.*+ ................ 10,440 104,097
At Road, Inc.* ................. 6,527 87,788
NII Holdings, Inc.--
Class B* ..................... 1,310 78,194
Western Wireless
Corp.--Class A* .............. 3,800 70,832
-----------------
TOTAL WIRELESS
TELECOMMUNICATION
SERVICES 340,911
-----------------
TOTAL TELECOMMUNICATION
SERVICES 940,846
-----------------
TOTAL COMMON STOCKS
(Cost $74,941,249) .............. 76,279,257
-----------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 29
MEKROSFUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 9.3%
Fannie Mae
1.05% due 10/01/03 ................ $10,000,000 $ 10,000,000
-----------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $10,000,000) ................ 10,000,000
-----------------
REPURCHASE AGREEMENTS 19.8%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ................ 4,754,171 4,754,171
0.94% due 10/01/03 ................ 338,432 338,432
0.93% due 10/01/03 ................ 4,754,171 4,754,171
0.91% due 10/01/03 ................ 4,754,171 4,754,171
0.90% due 10/01/03 ................ 6,711,770 6,711,770
-----------------
TOTAL REPURCHASE AGREEMENTS
(Cost $21,312,715) ................ 21,312,715
-----------------
TOTAL INVESTMENTS 100%
(Cost $106,253,964) ............... $ 107,591,972
=================
- -----------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 Russell 2000 Index
Futures Contracts
(Aggregate Market Value of
Contracts $53,271,750) ............ 219 $ (2,390,762)
December 2003 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $10,930,500) ............ 225 (193,751)
-----------------
(TOTAL AGGREGATE MARKET
VALUE OF CONTRACTS $64,202,250) ... $ (2,584,513)
=================
UNITS
--------
EQUITY INDEX SWAP AGREEMENTS
October 2003 Russell 2000 Index
Swap, Maturing 10/01/03*
(Notional Value $24,203,032) ...... 49,629 $ (1,110,629)
October 2003 Russell 2000 Index
Swap, Maturing 10/29/03*
(Notional Value $707,902) ......... 12,785 2,874,558
-----------------
(TOTAL NOTIONAL VALUE $24,910,934) .. $ 1,763,929
=================
*PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE
RATE.
See Notes to Financial Statements.
30
U.S. GOVERNMENT BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
U. S. TREASURY OBLIGATIONS 79.1%
U.S. Treasury Bond
5.38% due 02/15/31 ................ $57,958,000 $ 62,341,074
---------------
TOTAL U. S. TREASURY OBLIGATIONS
(Cost $58,234,681) ................ 62,341,074
---------------
REPURCHASE AGREEMENTS 20.9%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ................ 3,680,077 3,680,077
0.94% due 10/01/03 ................ 261,972 261,972
0.93% due 10/01/03 ................ 3,680,077 3,680,077
0.91% due 10/01/03 ................ 3,680,077 3,680,077
0.90% due 10/01/03 ................ 5,195,404 5,195,404
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $16,497,607) ................ 16,497,607
---------------
TOTAL INVESTMENTS 100%
(Cost $74,732,288) ................ $ 78,838,681
===============
- -----------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 U.S. Treasury
Bond Futures Contracts
(Aggregate Market Value of
Contracts $22,125,563) ............ 197 $ 844,296
===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 31
LARGE-CAP EUROPE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 80.6%
Federal Home Loan Bank
1.01% due 10/22/03 ................ $5,000,000 $ 4,997,054
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $4,997,054) ................. 4,997,054
---------------
REPURCHASE AGREEMENTS 19.4%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ................ 267,807 267,807
0.94% due 10/01/03 ................ 19,064 19,064
0.93% due 10/01/03 ................ 267,807 267,807
0.91% due 10/01/03 ................ 267,807 267,807
0.90% due 10/01/03 ................ 378,080 378,080
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,200,565) ................. 1,200,565
---------------
TOTAL INVESTMENTS 100%
(Cost $6,197,619) ................. $ 6,197,619
===============
- -----------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 Euro Currency
Futures Contracts
(Aggregate Market Value of
Contracts $435,750) ............... 3 $ 16,920
===============
UNITS
-------
EQUITY INDEX SWAP AGREEMENT
October 2003 Dow Jones Europe
STOXX 50 Index Swap,
Maturing 10/09/03*
(Notional Value $7,852,385) ....... 2,750 $ (95,867)
===============
* PRICE RETURN BASED ON DOW JONES EUROPE STOXX 50 INDEX +/- FINANCING AT A
VARIABLE RATE.
See Notes to Financial Statements.
32
LARGE-CAP JAPAN FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 83.8%
Federal Home Loan Bank
1.00% due 10/17/03 ................ $50,000,000 $ 49,977,778
0.97% due 10/02/03 ................ 5,000,000 4,999,865
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $54,977,643) ................ 54,977,643
---------------
REPURCHASE AGREEMENTS 16.2%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ................ 2,376,715 2,376,715
0.94% due 10/01/03 ................ 169,190 169,190
0.93% due 10/01/03 ................ 2,376,715 2,376,715
0.91% due 10/01/03 ................ 2,376,715 2,376,715
0.90% due 10/01/03 ................ 3,355,363 3,355,363
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $10,654,698) ................ 10,654,698
---------------
TOTAL INVESTMENTS 100%
(Cost $65,632,341) ................ $ 65,632,341
===============
- -----------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 Yen Currency
Exchange Futures Contracts
(Aggregate Market Value of
Contracts $5,397,600) ............. 48 $ 138,213
December 2003 Nikkei 225
Futures Contracts
(Aggregate Market Value of
Contracts $2,692,400) ............. 53 (148,911)
---------------
(TOTAL AGGREGATE MARKET
VALUE OF CONTRACTS $8,090,000) .... $ (10,698)
===============
UNITS
-------
EQUITY INDEX SWAP AGREEMENT
October 2003 Topix 100 Index Swap,
Maturing 10/09/03* (Notional
Value $82,585,040) ................ 12,430,374 $ 1,418,265
===============
*PRICE RETURN BASED ON TOPIX 100 INDEX +/- FINANCING AT A VARIABLE
RATE.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 33
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 89.3%
Fannie Mae
1.07% due 12/01/03+ .......................... $ 50,000,000 $ 49,909,347
1.05% due 12/24/03 ........................... 50,000,000 49,877,500
0.97% due 10/01/03 ........................... 25,000,000 25,000,000
1.00% due 10/08/03 ........................... 25,000,000 24,995,139
1.06% due 11/05/03 ........................... 25,000,000 24,974,236
1.04% due 12/24/03 ........................... 25,000,000 24,939,334
1.25% due 01/09/04+ .......................... 25,000,000 24,913,195
1.00% due 10/15/03 ........................... 10,000,000 9,996,111
1.33% due 12/12/03 ........................... 3,500,000 3,490,690
Farmer Mac
1.03% due 10/10/03 ........................... 50,000,000 49,987,125
1.05% due 11/25/03+ .......................... 50,000,000 49,919,792
1.05% due 11/24/03 ........................... 39,000,000 38,938,575
1.00% due 10/14/03 ........................... 25,000,000 24,990,972
1.03% due 12/18/03 ........................... 25,000,000 24,944,208
1.04% due 12/30/03 ........................... 25,000,000 24,935,000
1.05% due 11/03/03 ........................... 16,000,000 15,984,600
1.02% due 10/03/03 ........................... 15,000,000 14,999,150
1.03% due 10/16/03 ........................... 10,000,000 9,995,708
1.06% due 11/17/03 ........................... 10,000,000 9,986,161
Federal Farm Credit Bank
0.99% due 10/03/03 ........................... 25,000,000 24,998,625
1.25% due 10/15/03 ........................... 25,000,000 24,987,847
1.01% due 11/03/03 ........................... 25,000,000 24,976,854
1.01% due 11/26/03 ........................... 25,000,000 24,960,722
1.00% due 12/08/03 ........................... 25,000,000 24,952,778
1.00% due 11/18/03 ........................... 21,000,000 20,972,000
1.00% due 10/09/03 ........................... 15,000,000 14,996,667
1.00% due 01/15/04 ........................... 15,000,000 14,955,834
1.01% due 12/29/03 ........................... 11,000,000 10,972,534
1.00% due 10/01/03 ........................... 5,000,000 5,000,000
Federal Home Loan Bank
1.02% due 11/26/03 ........................... 100,000,000 99,841,333
1.03% due 10/08/03 ........................... 50,000,000 49,989,986
1.01% due 10/10/03 ........................... 50,000,000 49,987,375
1.04% due 10/31/03 ........................... 50,000,000 49,956,667
1.02% due 11/10/03 ........................... 50,000,000 49,943,333
1.01% due 11/12/03 ........................... 50,000,000 49,941,083
1.00% due 11/18/03+ .......................... 35,000,000 34,953,333
1.00% due 10/03/03 ........................... 25,000,000 24,998,611
1.04% due 10/08/03 ........................... 25,000,000 24,994,945
0.98% due 10/10/03 ........................... 25,000,000 24,993,875
1.01% due 10/24/03 ........................... 25,000,000 24,983,868
<FN>
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
</FN>
See Notes to Financial Statements.
34
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------
1.02% due 12/03/03 ........................... $ 25,000,000 $ 24,955,375
1.04% due 12/02/03 ........................... 25,000,000 24,955,222
1.02% due 12/05/03 ........................... 25,000,000 24,953,958
1.01% due 12/17/03 ........................... 25,000,000 24,945,993
1.02% due 12/24/03 ........................... 25,000,000 24,940,500
1.03% due 01/05/04 ........................... 25,000,000 24,931,333
1.02% due 10/29/03 ........................... 23,000,000 22,981,753
1.04% due 11/05/03 ........................... 14,000,000 13,985,845
1.05% due 01/14/04 ........................... 10,000,000 9,969,375
1.03% due 10/29/03 ........................... 4,500,000 4,496,395
Freddie Mac
1.02% due 10/16/03 ........................... 25,000,000 24,989,427
1.23% due 11/07/03 ........................... 25,000,000 24,968,524
1.23% due 12/15/03 ........................... 25,000,000 24,935,938
1.31% due 12/31/03 ........................... 20,000,000 19,933,772
------------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,475,078,523) ........................ 1,475,078,523
------------------
FEDERAL AGENCY BONDS 0.6%
Federal Home Loan Bank Bond
1.42% due 04/21/04 ........................... 10,000,000 10,000,000
------------------
TOTAL FEDERAL AGENCY BONDS
(Cost $10,000,000) ........................... 10,000,000
------------------
TIME DEPOSITS 0.9%
Euro Time Deposits
1.03% due 10/01/03 ........................... 15,000,000 15,000,000
------------------
TOTAL TIME DEPOSITS
(Cost $15,000,000) ........................... 15,000,000
------------------
REPURCHASE AGREEMENTS 9.2%
Individual Repurchase Agreement
Lehman Brothers, Inc. at 0.94%
due 10/01/03 ................................. 151,994,804 151,994,804
(Secured by U.S. Treasury Note at a rate of ------------------
2.00% and maturing 8/31/05, as collateral,
with a market value of $155,047,179)
TOTAL REPURCHASE AGREEMENTS
(Cost $151,994,804) .......................... 151,994,804
------------------
TOTAL INVESTMENTS 100%
(Cost $1,652,073,327) ........................ $1,652,073,327
==================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 35
- --------------------------------------------------------------------------------
This page intentionally left blank.
36 & 37 SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS MEDIUS MEKROS
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ----------- ------------
ASSETS
Securities at Value* (Notes 1, 2 and 6) ........ $ -- $ -- $848,415,230 $ -- $31,973,807 $107,591,972
Investments in Master Portfolio** (Note 3) ..... 218,466,205 638,422,693 -- 247,730,186 -- --
Collateral for Securities Loaned (Note 10) ..... -- -- 350,230,686 -- 5,309,643 6,823,343
Segregated Cash with Broker .................... -- -- 801,000 -- 1,813,725 10,951,530
Cash in Custodian Bank (Note 1) ................ -- 31,127 -- -- -- --
Receivable for Equity Index Swap Settlement
(Note 1) -- -- -- -- 529,288 6,882,898
Receivable for Securities Sold (Note 1) ........ -- -- 3,961,965 -- 6,463,558 11,908,761
Receivable for Shares Purchased ................ 8,204,625 18,582,770 8,330,353 13,096,654 406,517 3,226,131
Investment Income Receivable (Note 1) .......... -- -- 18,659 -- 27,309 117,032
Receivable from Master Portfolio ............... 899 978 -- 433 -- --
Other Assets ................................... -- -- -- 33,838 -- --
------------ ------------ ------------- ------------ ----------- ------------
TOTAL ASSETS ................................. 226,671,729 657,037,568 1,211,757,893 260,861,111 46,523,847 147,501,667
------------ ------------ ------------- ------------ ----------- ------------
LIABILITIES
Payable for Equity Index Swap
Settlement (Note 1) .......................... -- -- -- -- -- 2,865,967
Payable for Futures Contracts
Settlement (Note 1) .......................... -- -- 267,000 -- 68,570 1,081,363
Payable upon Return of Securities
Loaned (Note 10) ............................. -- -- 350,230,686 -- 5,309,643 6,823,343
Payable for Securities
Purchased (Note 1) ........................... 1,930,621 11,604,885 -- 7,278,981 -- --
Liability for Shares Redeemed .................. 6,206,997 6,867,133 14,154,711 5,770,960 9,588,216 24,040,555
Investment Advisory Fee Payable (Note 4) ....... -- -- 536,969 -- 35,718 154,357
Transfer Agent Fee Payable (Note 4) ............ 43,714 98,686 178,990 31,626 9,922 42,877
Distribution and Service Fee Payable (Note 4) .. 12,290 23,909 11,876 2,437 2,650 8,923
Portfolio Accounting Fee Payable (Note 4) ...... 17,486 34,119 48,294 12,650 3,969 17,132
Custody Fees Payable ........................... -- -- 23,626 -- 1,310 5,732
Other Liabilities .............................. 23,428 52,656 95,576 16,522 5,271 22,940
------------ ------------ ------------ ------------ ----------- ------------
TOTAL LIABILITIES ............................ 8,234,536 18,681,388 365,547,728 13,113,176 15,025,269 35,063,189
------------ ------------ ------------ ------------ ----------- ------------
NET ASSETS (NOTE 9) ............................ $218,437,193 $638,356,180 $846,210,165 $247,747,935 $31,498,578 $112,438,478
============ ============ ============ ============ =========== ============
INVESTOR CLASS:
Net Assets ..................................... $154,656,040 $545,769,855 $801,711,522 $227,671,228 N/A N/A
Shares Outstanding ............................. 7,790,082 49,906,212 90,676,335 7,901,339
Net Asset Value Per Share ...................... $19.85 $10.94 $8.84 $28.81
ADVISOR CLASS:
Net Assets ..................................... $42,497,469 $51,190,503 $32,440,917 $2,420,967 N/A N/A
Shares Outstanding ............................. 2,198,222 4,822,355 3,767,903 84,078
Net Asset Value Per Share ...................... $19.33 $10.62 $8.61 $28.79
H CLASS:
Net Assets ..................................... N/A N/A N/A N/A $24,860,254 $ 85,967,299
Shares Outstanding ............................. 1,117,639 4,347,678
Net Asset Value Per Share ...................... $22.24 $19.77
C CLASS:
Net Assets ..................................... $21,283,684 $41,395,822 $12,057,726 $17,655,740 $6,638,324 $ 26,471,179
Shares Outstanding ............................. 1,101,173 3,877,874 1,403,131 630,631 303,105 1,363,999
Net Asset Value Per Share ...................... $19.33 $10.67 $8.59 $28.00 $21.90 $19.41
<FN>
* THE COST OF SECURITIES AT VALUE IS $0, $0, $551,759,937, $0, $28,859,692 AND
$106,253,964, RESPECTIVELY.
** THE COST OF INVESTMENT IN MASTER PORTFOLIO IS $220,725,008, $643,800,610,
$0, $254,572,746, $0 AND $0, RESPECTIVELY.
</FN>
See Notes to Financial Statements.
38 & 39 SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED) September 30, 2003
- -------------------------------------------------------------------------------
U.S.
U.S. LARGE-CAP LARGE-CAP GOVERNMENT
GOVERNMENT JUNO EUROPE JAPAN MONEY
BOND FUND FUND FUND FUND MARKET FUND
----------- ------------ ---------- ----------- --------------
ASSETS
Securities at Value* (Notes 1, 2 and 6) ........ $78,838,681 $ -- $6,197,619 $65,632,341 $1,652,073,327
Investments in Master Portfolio**
(Note 3) ..................................... -- 674,380,334 -- -- --
Collateral for Securities Loaned
(Note 10) .................................... -- -- -- -- 160,000,000
Segregated Cash with Broker .................... 481,500 -- 1,477,861 8,907,109 --
Receivable for Equity Index Swap
Settlement (Note 1) .......................... -- -- -- 841,349 --
Receivable for Futures Contracts
Settlement (Note 1) .......................... 405,804 -- 2,250 -- --
Receivable for Securities Sold (Note 1) ........ 4,725,068 -- -- -- --
Receivable for Shares Purchased ................ 4,397,897 23,089,913 500,524 1,268,556 171,582,519
Investment Income Receivable (Note 1) .......... 398,294 -- 31 273 76,644
Receivable from Master Portfolio ............... -- 102 -- -- --
----------- ------------ ---------- ----------- --------------
TOTAL ASSETS ................................. 89,247,244 697,470,349 8,178,285 76,649,628 1,983,732,490
----------- ------------ ---------- ----------- --------------
LIABILITIES
Payable for Equity Index Swap
Settlement (Note 1) .......................... -- -- 161,301 -- --
Payable for Futures Contracts
Settlement (Note 1) .......................... -- -- -- 60,150 --
Payable upon Return of Securities
Loaned (Note 10) ............................. -- -- -- -- 160,000,000
Payable for Securities Purchased (Note 1) ...... -- 15,474,521 -- -- --
Liability for Shares Redeemed .................. 10,209,507 7,404,738 1,846,683 7,987,872 84,457,990
Investment Advisory Fee Payable (Note 4) ....... 25,780 -- 6,533 58,509 644,688
Transfer Agent Fee Payable (Note 4) ............ 10,312 136,258 1,815 16,252 250,649
Distribution and Service Fee
Payable (Note 4) ............................. 1,325 32,247 671 2,642 7,787
Portfolio Accounting Fee Payable (Note 4) ...... 5,156 42,149 726 6,501 63,439
Custody Fees Payable ........................... 1,701 -- 239 2,145 42,913
Dividends Payable .............................. 2,339 -- -- -- 29,126
Other Liabilities .............................. 7,023 72,788 954 8,709 173,541
----------- ------------ ---------- ----------- --------------
TOTAL LIABILITIES ............................ 10,263,143 23,162,701 2,018,922 8,142,780 245,670,133
----------- ------------ ---------- ----------- --------------
NET ASSETS (NOTE 9) ............................ $78,984,101 $674,307,648 $6,159,363 $68,506,848 $1,738,062,357
=========== ============ ========== =========== ==============
INVESTOR CLASS:
Net Assets ..................................... $56,478,350 $420,625,063 N/A N/A $1,208,017,936
Shares Outstanding ............................. 5,236,745 20,301,497 1,208,445,236
Net Asset Value Per Share ...................... $10.79 $20.72 $1.00
ADVISOR CLASS:
Net Assets ..................................... $13,978,625 $13,325,845 N/A N/A $264,644,636
Shares Outstanding ............................. 1,297,114 643,713 264,900,128
Net Asset Value Per Share ...................... $10.78 $20.70 $1.00
H CLASS:
Net Assets ..................................... N/A N/A $5,162,928 $67,023,588 N/A
Shares Outstanding ............................. 402,596 2,458,835
Net Asset Value Per Share ...................... $12.82 $27.26
C CLASS:
Net Assets ..................................... $8,527,126 $240,356,740 $996,435 $1,483,260 $215,399,719
Shares Outstanding ............................. 788,912 11,857,601 79,219 54,871 215,399,046
Net Asset Value Per Share ...................... $10.81 $20.27 $12.58 $27.03 $1.00
INSTITUTIONAL CLASS:
Net Assets ..................................... N/A N/A N/A N/A $50,000,066
Shares Outstanding ............................. 50,000,000
Net Asset Value Per Share ...................... $1.00
<FN>
* THE COST OF SECURITIES AT VALUE IS $74,732,288, $0, $6,197,619, $65,632,341
AND $1,652,073,327, RESPECTIVELY.
** THE COST OF INVESTMENT IN MASTER PORTFOLIO IS $0, $684,938,729, $0, $0 AND
$0, RESPECTIVELY.
</FN>
See Notes to Financial Statements.
40 & 41 SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003
- -------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS MEDIUS MEKROS
FUND FUND FUND FUND FUND FUND
----------- ------------- ------------ ------------ ---------- -----------
INVESTMENT INCOME
Interest (Note 1) ............................ $ -- $ -- $ 126,399 $ -- $ 39,642 $ 275,696
Interest from Securities Lending ............. -- -- 65,642 -- 217 893
Dividends, Net of Foreign Tax
Withheld* (Note 1) ......................... -- 358,769 521,811 -- 178,787 397,462
----------- ------------- ------------ ------------ ---------- -----------
Total Income ............................... -- 358,769 713,852 -- 218,646 674,051
----------- ------------- ------------ ------------ ---------- -----------
EXPENSES
Advisory Fees (Note 4) ....................... -- -- 3,079,414 -- 178,994 579,056
Transfer Agent Fees (Note 4) ................. 249,489 720,882 1,026,471 193,122 49,720 160,849
Distribution & Service Fees: (Note 4)
Advisor Class .............................. 85,524 123,226 81,185 740 -- --
H Class .................................... -- -- -- -- 41,564 131,349
C Class .................................... 97,677 146,522 51,501 35,128 32,624 118,001
Audit and Outside Services ................... 30,466 85,772 109,824 23,439 5,023 9,969
Accounting Fees (Note 4) ..................... 99,796 236,224 291,838 77,249 19,888 64,320
Registration Fees ............................ 45,156 130,228 171,894 35,507 8,192 19,156
Trustees' Fees ............................... 3,651 10,926 14,701 2,971 746 1,833
Printing Expenses ............................ 27,277 89,029 115,997 23,877 5,529 16,577
Miscellaneous ................................ (14,426) (52,963) 112,574 (13,984) 6,301 38,439
----------- ------------- ------------ ------------ ---------- -----------
Total Expenses ............................. 624,610 1,489,846 5,055,399 378,049 348,581 1,139,549
----------- ------------- ------------ ------------ ---------- -----------
Net Investment Loss .......................... (624,610) (1,131,077) (4,341,547) (378,049) (129,935) (465,498)
----------- ------------- ------------ ------------ ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities ........................ 43,118,652 (97,815,867) 20,982,313 (43,451,956) 2,119,424 11,473,045
Equity Index Swaps ........................... -- -- -- -- 2,008,545 12,315,794
Futures Contracts ............................ -- -- 5,351,095 -- 1,390,362 9,170,290
----------- ------------- ------------ ------------ ---------- -----------
Total Net Realized Gain (Loss) ............. 43,118,652 (97,815,867) 26,333,408 (43,451,956) 5,518,331 32,959,129
----------- ------------- ------------ ------------ ---------- -----------
Net Change in Unrealized
Appreciation (Depreciation) on:
Investment Securities ........................ 513,786 (16,405,466) 151,477,385 (2,576,754) 2,551,614 694,031
Equity Index Swaps ........................... -- -- -- -- 592,642 1,515,189
Futures Contracts ............................ -- -- 854,528 -- (167,151) (2,805,735)
----------- ------------- ------------ ------------ ---------- -----------
Net Change in Unrealized Appreciation
(Depreciation) ............................ 513,786 (16,405,466) 152,331,913 (2,576,754) 2,977,105 (596,515)
----------- ------------- ------------ ------------ ---------- -----------
Net Gain (Loss) on Investments ............. 43,632,438 (114,221,333) 178,665,321 (46,028,710) 8,495,436 32,362,614
----------- ------------- ------------ ------------ ---------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS ..................... $43,007,828 $(115,352,410) $174,323,774 $(46,406,759) $8,365,501 $31,897,116
=========== ============= ============ ============ ========== ===========
<FN>
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $4,205, $0, $0, AND $162, RESPECTIVELY.
</FN>
See Notes to Financial Statements.
42 & 43 SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED) Period Ended September 30, 2003
- --------------------------------------------------------------------------------
U.S.
U.S. LARGE-CAP LARGE-CAP GOVERNMENT
GOVERNMENT JUNO EUROPE JAPAN MONEY
BOND FUND FUND FUND FUND MARKET FUND
---------- ------------ ---------- ---------- ----------
INVESTMENT INCOME
Interest (Note 1) ............................ $1,153,041 $ -- $ 85,694 $ 141,188 $9,238,194
Interest from Securities Lending ............. -- -- -- -- 18,452
---------- ------------ ---------- ---------- ----------
Total Income ............................... 1,153,041 -- 85,694 141,188 9,256,646
---------- ------------ ---------- ---------- ----------
EXPENSES
Advisory Fees (Note 4) ....................... 120,900 -- 73,006 133,497 4,149,965
Transfer Agent Fees (Note 4) ................. 48,360 570,710 20,279 37,083 1,659,986
Distribution & Service Fees: (Note 4)
Advisor Class .............................. 1,859 5,673 -- -- 624,274
H Class .................................... -- -- 19,300 36,230 --
C Class .................................... 20,795 722,005 3,918 3,409 916,889
Audit and Outside Services ................... 6,764 21,251 1,537 1,781 231,988
Accounting Fees (Note 4) ..................... 24,180 190,255 8,112 14,833 418,211
Registration Fees ............................ 10,392 53,742 2,982 3,687 359,049
Trustees' Fees ............................... 750 6,039 241 407 30,584
Printing Expenses ............................ 7,877 68,003 1,948 3,594 241,301
Miscellaneous ................................ 6,089 78,924 3,240 11,819 191,357
---------- ------------ ---------- ---------- ----------
Total Expenses ............................. 247,966 1,716,602 134,563 246,340 8,823,604
---------- ------------ ---------- ---------- ----------
Less Institutional Class Expenses
Reimbursed by Advisor (Note 4) ............. -- -- -- -- (24,197)
Less Expenses Waived by Servicer (Note 4)
Institutional Class ........................ -- -- -- -- (75,226)
Less Expenses Waived by Distributors (Note 4)
Advisor Class .............................. -- -- -- -- (329,005)
C Class .................................... -- -- -- -- (701,602)
---------- ------------ ---------- ---------- ----------
Total Reimbursed/Waived Expenses ........... -- -- -- -- (1,130,030)
---------- ------------ ---------- ---------- ----------
Net Expenses ................................. 247,966 1,716,602 134,563 246,340 7,693,574
---------- ------------ ---------- ---------- ----------
Net Investment Income (Loss) ................... 905,075 (1,716,602) (48,869) (105,152) 1,563,072
---------- ------------ ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities ........................ (531,231) 4,801,363 -- -- 1,727
Equity Index Swaps ........................... -- -- 3,440,304 2,975,785 --
Futures Contracts ............................ (233,229) -- (28,156) 87,913 --
---------- ------------ ---------- ---------- ----------
Total Net Realized Gain (Loss) ............. (764,460) 4,801,363 3,412,148 3,063,698 1,727
---------- ------------ ---------- ---------- ----------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities ........................ 1,258,943 (11,184,367) -- -- --
Equity Index Swaps ........................... -- -- (215,347) 1,462,102 --
Futures Contracts ............................ 669,271 -- 15,106 (10,530) --
---------- ------------ ---------- ---------- ----------
Net Change in Unrealized
Appreciation (Depreciation) ................ 1,928,214 (11,184,367) (200,241) 1,451,572 --
---------- ------------ ---------- ---------- ----------
Net Gain (Loss) on Investments ............. 1,163,754 (6,383,004) 3,211,907 4,515,270 1,727
---------- ------------ ---------- ---------- ----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS ..................... $2,068,829 $ (8,099,606) $3,163,038 $4,410,118 $1,564,799
========== ============ ========== ========== ==========
See Notes to Financial Statements.
44 & 45 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA FUND URSA FUND
-------------------------- --------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003
------------ ------------ ------------ ------------
FROM OPERATIONS
Net Investment Income (Loss) ................ $ (624,610) $ 541,943 $ (1,131,077) $ 1,030
Net Realized Gain (Loss) on Investments,
Options, Swaps and Futures ................ 43,118,652 (83,894,182) (97,815,867) 101,067,765
Net Change in Unrealized Appreciation
(Depreciation) on Investments,
Options, Swaps and Futures ................ 513,786 (31,004,311) (16,405,466) (35,596,840)
------------ ------------ ------------ ------------
Net Increase (Decrease) in
Net Assets from Operations ................ 43,007,828 (114,356,550) (115,352,410) 65,471,955
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class ............................ -- -- -- (2,899,882)
Advisor Class ............................. -- -- -- (132,734)
H Class ................................... -- -- -- --
C Class ................................... -- -- -- (72,651)
------------ ------------ ------------ ------------
Total Distributions to Shareholders ........... -- -- -- (3,105,267)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 8) ............ 4,720,863 (6,916,336) 224,883,017 237,917,856
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Assets ..... 47,728,691 (121,272,886) 109,530,607 300,284,544
NET ASSETS--BEGINNING OF PERIOd ............. 170,708,502 291,981,388 528,825,573 228,541,029
------------ ------------ ------------ ------------
NET ASSETS--END OF PERIOD (NOTE 9) .......... $218,437,193 $170,708,502 $638,356,180 $528,825,573
============ ============ ============ ============
OTC FUND ARKTOS FUND
-------------------------- --------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003
------------ ------------ ------------- ------------
FROM OPERATIONS
Net Investment Income (Loss) ................ $ (4,341,547) $ (5,902,843) $ (378,049) $ 27,246,005
Net Realized Gain (Loss) on Investments,
Options, Swaps and Futures ................ 26,333,408 (135,315,592) (43,451,956) (29,420,825)
Net Change in Unrealized Appreciation
(Depreciation) on Investments,
Options, Swaps and Futures ................ 152,331,913 (115,172,972) (2,576,754) 11,571,419
------------ ------------ ------------ ------------
Net Increase (Decrease) in
Net Assets from Operations ................ 174,323,774 (256,391,407) (46,406,759) 9,396,599
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class ............................ -- -- -- (4,795,888)
Advisor Class ............................. -- -- -- --
H Class ................................... -- -- -- --
C Class ................................... -- -- -- (79,729)
------------ ------------ ------------ ------------
Total Distributions to Shareholders ........... -- -- -- (4,875,617)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 8) ............ (34,282,516) 154,541,514 145,066,021 28,667,412
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Assets ..... 140,041,258 (101,849,893) 98,659,262 33,188,394
NET ASSETS--BEGINNING OF PERIOd ............. 706,168,907 808,018,800 149,088,673 115,900,279
------------ ------------ ------------ ------------
NET ASSETS--END OF PERIOD (NOTE 9) .......... $846,210,165 $706,168,907 $247,747,935 $149,088,673
============ ============ ============ ============
<FN>
+ UNAUDITED.
</FN>
See Notes to Financial Statements.
46 & 47 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
MEDIUS FUND MEKROS FUND
------------------------- -------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003
----------- ------------ ------------ ------------
FROM OPERATIONS
Net Investment Loss .......................... $ (129,935) $ (146,740) $ (465,498) $ (187,830)
Net Realized Gain (Loss) on Investments,
Options, Swaps and Futures ................. 5,518,331 (22,901,268) 32,959,129 (30,167,927)
Net Change in Unrealized Appreciation
(Depreciation) on Investments,
Options, Swaps and Futures ................. 2,977,105 (4,636,758) (596,515) (9,847,041)
----------- ------------ ------------ ------------
Net Increase (Decrease) in Net
Assets from Operations ..................... 8,365,501 (27,684,766) 31,897,116 (40,202,798)
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class ............................. -- -- -- --
Advisor Class .............................. -- -- -- --
H Class .................................... -- (171,769) -- --
C Class .................................... -- (19,802) -- --
Realized Gain on Investment
Investor Class ............................. -- -- -- --
Advisor Class .............................. -- -- -- --
H Class .................................... -- -- -- (173,942)
C Class .................................... -- -- -- (9,606)
----------- ------------ ------------ ------------
Total Distributions to Shareholders ............ -- (191,571) -- (183,548)
----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 8) ............. 2,888,855 (69,789,373) 34,910,665 (54,632,052)
----------- ------------ ------------ ------------
Net Increase (Decrease) in Net Assets ........ 11,254,356 (97,665,710) 66,807,781 (95,018,398)
NET ASSETS--BEGINNING OF PERIOD ................ 20,244,222 117,909,932 45,630,697 140,649,095
----------- ------------ ------------ ------------
NET ASSETS--END OF PERIOD (NOTE 9) ............. $31,498,578 $ 20,244,222 $112,438,478 $ 45,630,697
=========== ============ ============ ============
U.S. GOVERNMENT BOND FUND JUNO FUND
------------------------- ---------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003
------------ ----------- ------------ -------------
FROM OPERATIONS
Net Investment Income (Loss) ................. $ 905,075 $ 2,064,223 $ (1,716,602) $ (497,831)
Net Realized Gain (Loss) on Investments,
Options, Swaps and Futures ................. (764,460) (2,185,716) 4,801,363 (9,220,393)
Net Change in Unrealized Appreciation
(Depreciation) on Investments,
Options, Swaps and Futures ................. 1,928,214 3,013,992 (11,184,367) (1,478,617)
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets from Operations ..................... 2,068,829 2,892,499 (8,099,606) (11,196,841)
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class ............................. (833,498) (2,023,746) -- (59,275)
Advisor Class .............................. (11,832) -- -- --
H Class .................................... -- -- -- --
C Class .................................... (59,745) (40,477) -- (10,152)
Realized Gain on Investment
Investor Class ............................. -- -- -- --
Advisor Class .............................. -- -- -- --
H Class .................................... -- -- -- --
C Class .................................... -- -- -- --
----------- ----------- ------------ ------------
Total Distributions to Shareholders ............ (905,075) (2,064,223) -- (69,427)
----------- ----------- ------------ ------------
NET INCREASE IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 8) ............. 24,287,407 38,357,887 492,480,017 168,023,827
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net Assets ........ 25,451,161 39,186,163 484,380,411 156,757,559
NET ASSETS--BEGINNING OF PERIOD ................ 53,532,940 14,346,777 189,927,237 33,169,678
----------- ----------- ------------ ------------
NET ASSETS--END OF PERIOD (NOTE 9) ............. $78,984,101 $53,532,940 $674,307,648 $189,927,237
=========== =========== ============ ============
<FN>
+ UNAUDITED.
</FN>
See Notes to Financial Statements.
48 & 49 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
LARGE-CAP LARGE-CAP U.S. GOVERNMENT
EUROPE FUND JAPAN FUND MONEY MARKET FUND
------------------------ ------------------------- -----------------------------
PERIOD YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003 2003+ 2003
----------- ----------- ----------- ------------ -------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) ............... $ (48,869) $ (21,906) $ (105,152) $ (10,637) $ 1,563,072 $ 9,520,248
Net Realized Gain (Loss) on
Investments, Swaps and Futures ........... 3,412,148 (8,261,767) 3,063,698 (9,194,122) 1,727 --
Net Change in Unrealized Appreciation
(Depreciation) on Investments,
Swaps and Futures ........................ (200,241) 181,642 1,451,572 1,552,367 -- --
----------- ----------- ----------- ------------ -------------- --------------
Net Increase (Decrease) in Net
Assets from Operations ................... 3,163,038 (8,102,031) 4,410,118 (7,652,392) 1,564,799 9,520,248
----------- ----------- ----------- ------------ -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class ........................... -- -- -- -- (1,378,682) (8,203,812)
Advisor Class ............................ -- -- -- -- (7,341) (1,050,597)
H Class .................................. -- -- -- -- -- --
C Class .................................. -- -- -- -- (5,315) (82,113)
Institutional Class ...................... -- -- -- -- (171,734) (183,726)
----------- ----------- ----------- ------------ -------------- --------------
Total Distributions to Shareholders ........ -- -- -- -- (1,563,072) (9,520,248)
----------- ----------- ----------- ------------ -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 8) ........... (3,658,910) 4,944,471 61,404,849 (13,540,916) 70,118,503 269,232,701
----------- ----------- ----------- ------------ -------------- --------------
Net Increase (Decrease) in Net Assets ...... (495,872) (3,157,560) 65,814,967 (21,193,308) 70,120,230 269,232,701
NET ASSETS--BEGINNING OF PERIOD .............. 6,655,235 9,812,795 2,691,881 23,885,189 1,667,942,127 1,398,709,426
----------- ----------- ----------- ------------ -------------- --------------
NET ASSETS--END OF PERIOD (NOTE 9) ........... $ 6,159,363 $ 6,655,235 $68,506,848 $ 2,691,881 $1,738,062,357 $1,667,942,127
=========== =========== =========== ============ ============== ==============
<FN>
+ UNAUDITED.
</FN>
See Notes to Financial Statements.
50 & 51 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
--------------------------------- ----------------------------------
NOVA FUND NOVA FUND
--------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999
---------- ---------- ---------- --------- ---------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $15.54 $25.56 $26.85 $41.93 $34.87 $29.82
---------- ---------- ---------- --------- ---------- ---------
Net Investment Income (Loss)+ ........... (.04) .08 .12 .33 .47 .45
Net Realized and Unrealized Gains
(Losses) on Securities ................ 4.35 (10.10) (1.28) (15.41) 6.60 5.01
---------- ---------- ---------- --------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations ....... 4.31 (10.02) (1.16) (15.08) 7.07 5.46
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................. -- -- (.13) -- (.01) (.41)
---------- ---------- ---------- --------- ---------- ---------
Net Increase (Decrease) in
Net Asset Value ....................... 4.31 (10.02) (1.29) (15.08) 7.06 5.05
---------- ---------- ---------- --------- ---------- ---------
NET ASSET VALUE--
END OF PERIOD ......................... $19.85 $15.54 $25.56 $26.85 $41.93 $34.87
========== ========== ========== ========= ========== =========
TOTAL INVESTMENT RETURN ................. 27.73% (39.20)% (4.36)% (35.96)% 20.29% 18.54%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 1.22%*+++ 1.27%+++ 1.16%+++ 1.34% 1.18% 1.19%
Net Expenses ............................ 1.22%*+++ 1.27%+++ 1.16%+++ 1.33% 1.18% 1.19%
Net Investment Income (Loss) ............ (0.44)%* 0.44% 0.44% 0.89% 1.26% 1.47%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate** ............... 198% 603% 401% 117% 311% 445%
Net Assets, End of
Period (000's omitted) ................ $154,656 $130,951 $222,251 $251,333 $748,147 $655,275
<FN>
* ANNUALIZED.
** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED.
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
52 & 53 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
--------------------------------- ----------------------------------
URSA FUND URSA FUND
--------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999
---------- ---------- ---------- --------- ---------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $13.06 $10.45 $10.43 $7.68 $8.66 $9.92
---------- ---------- ---------- --------- ---------- ---------
Net Investment Income (Loss)+ ........... (.02) .01 .16 .40 .32 .25
Net Realized and Unrealized Gains
(Losses) on Securities ................ (2.10) 2.67 (.10) 2.41 (1.24) (1.48)
---------- ---------- ---------- --------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. (2.12) 2.68 .06 2.81 (.92) (1.23)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................. -- (.07) (.04) (.06) (.06) (.03)
---------- ---------- ---------- --------- ---------- ---------
Net Increase (Decrease) in
Net Asset Value ....................... (2.12) 2.61 .02 2.75 (.98) (1.26)
---------- ---------- ---------- --------- ---------- ---------
NET ASSET VALUE--
END OF PERIOD ......................... $10.94 $13.06 $10.45 $10.43 $7.68 $8.66
========== ========== ========== ========= ========== =========
TOTAL INVESTMENT RETURN ................. (16.23)% 25.65% 0.60% 36.68% (10.64)% (12.47)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 1.35%*+++ 1.41%+++ 1.31%+++ 1.37%+++ 1.32% 1.39%
Net Expenses ............................ 1.35%*+++ 1.41%+++ 1.31%+++ 1.37%+++ 1.31% 1.38%
Net Investment Income (Loss) ............ (0.30)%* 0.06% 1.56% 4.69% 3.81% 3.29%
SUPPLEMENTARY DATA:
Net Assets, End of Period (000's omitted) $545,770 $471,600 $214,498 $222,939 $288,218 $482,340
<FN>
* ANNUALIZED
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
54 & 55 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
----------------------------------- -----------------------------------
OTC FUND OTC FUND
----------------------------------- -----------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001 2000++ 1999++
---------- ---------- ---------- ---------- ---------- ----------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................... $7.02 $10.16 $11.19 $32.40 $15.90 $9.23
---------- ---------- ---------- ---------- ---------- ----------
Net Investment Loss+ ..................... (.04) (.08) (.11) (.24) (.22) (.12)
Net Realized and Unrealized Gains
(Losses) on Securities ................. 1.86 (3.06) (.92) (20.80) 16.88 6.88
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations ........ 1.82 (3.14) (1.03) (21.04) 16.66 6.76
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Realized Capital Gains ............. -- -- -- (.17) (.16) (.09)
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in
Net Asset Value ........................ 1.82 (3.14) (1.03) (21.21) 16.50 6.67
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE--
END OF PERIOD .......................... $8.84 $7.02 $10.16 $11.19 $32.40 $15.90
========== ========== ========== ========== ========== ==========
TOTAL INVESTMENT RETURN .................. 25.93% (30.91)% (9.20)% (65.19)% 105.32% 73.73%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................... 1.20%* 1.27% 1.08% 1.16% 1.15% 1.15%
Net Expenses ............................. 1.20%* 1.27% 1.08% 1.16% 1.15% 1.15%
Net Investment Loss ...................... (1.02)%* (1.08)% (0.96)% (1.01)% (1.01)% (0.97)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate** ................ 74% 180% 109% 228% 385% 773%
Net Assets, End of Period
(000's omitted) ........................ $801,712 $653,999 $783,637 $1,043,848 $3,762,540 $1,277,571
<FN>
* ANNUALIZED
** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ PER SHARE AMOUNTS FOR THE YEAR MARCH 31, 1999 AND MARCH 31, 2000 HAVE BEEN
RESTATED TO REFLECT A 3:1 STOCK SPLIT EFFECTIVE APRIL 14, 2000.
+++ UNAUDITED
</FN>
See Notes to Financial Statements.
56 & 57 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
------------------------------------- ----------------------------------
ARKTOS FUND ARKTOS FUND
------------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001 2000++ 1999*++
------------- --------- --------- --------- --------- ----------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ... $37.79 $32.29 $35.76 $17.45 $40.20 $75.00
--------- --------- --------- --------- --------- ----------
Net Investment Income (Loss)+ .......... (.07) 7.34 1.01 1.08 .75 .65
Net Realized and Unrealized Gains
(Losses) on Securities ............... (8.91) (.70) (4.19) 17.23 (23.40) (35.40)
--------- --------- --------- --------- --------- ----------
Net Increase (Decrease)
in Net Asset
Value Resulting
from Operations ...................... (8.98) 6.64 (3.18) 18.31 (22.65) (34.75)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ -- (1.14) (.29) -- (.10) (.05)
--------- --------- --------- --------- --------- ----------
Net Increase (Decrease) in
Net Asset Value ...................... (8.98) 5.50 (3.47) 18.31 (22.75) (34.80)
--------- --------- --------- --------- --------- ----------
NET ASSET VALUE--
END OF PERIOD ........................ $28.81 $37.79 $32.29 $35.76 $17.45 $40.20
========= ========= ========= ========= ========= ==========
TOTAL INVESTMENT RETURN ................ (23.76)% 20.39% (8.84)% 104.93% (56.39)% (46.35)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.38%**++++ 1.42%++++ 1.35%++++ 1.34%++++ 1.46% 1.38%**
Net Expenses ........................... 1.38%**++++ 1.42%++++ 1.35%++++ 1.33%++++ 1.46% 1.37%**
Net Investment Income (Loss) ........... (0.44)%** 18.11% 3.16% 6.27% 2.67% 2.20%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. -- -- -- 1,788% 1,157% 1,332%
Net Assets, End of
Period (000's omitted) ............... $227,671 $146,416 $113,904 $79,028 $103,160 $118,622
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 3, 1998
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. FOR PERIODS AFTER MARCH
31, 2000, PORTFOLIO TURNOVER IS CALCULATED ONLY FOR THE ARKTOS MASTER
PORTFOLIO.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 AND MARCH 31, 2000
HAVE BEEN RESTATED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE APRIL 14,
2000.
+++ UNAUDITED
++++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
58 & 59 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
------------------------------------ ----------------------------------
U.S. GOVERNMENT BOND FUND U.S. GOVERNMENT BOND FUND
------------------------------------ ----------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................... $10.95 $9.12 $9.82 $9.34 $10.05 $10.04
--------- --------- --------- --------- --------- ---------
Net Investment Income+ ................... .20 .41 .43 .42 .46 .42
Net Realized and Unrealized Gains
(Losses) on Securities ................. (.16) 1.83 (.70) .48 (.71) .02
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations .............. .04 2.24 (.27) .90 (.25) .44
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .................. (.20) (.41) (.43) (.42) (.46) (.42)
Net Realized Capital Gain .............. -- -- -- -- -- (.01)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ........................ (.16) 1.83 (.70) .48 (.71) .01
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD .......................... $10.79 $10.95 $9.12 $9.82 $9.34 $10.05
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN .................. 0.44% 24.93% (2.88)% 9.81% (2.26)% 4.24%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................... 0.93%* 0.97% 0.88% 0.97% 0.93% 0.97%
Net Expenses ............................. 0.93%* 0.97% 0.88% 0.96% 0.92% 0.96%
Net Investment Income .................... 3.83%* 4.00% 4.39% 4.38% 5.01% 3.88%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate** ................ 653% 2,404% 860% 1,107% 890% 1,339%
Net Assets, End of
Period (000's omitted) ................. $56,478 $51,370 $14,138 $80,686 $28,105 $27,623
<FN>
* ANNUALIZED
** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED
</FN>
See Notes to Financial Statements.
60 & 61 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
------------------------------------ ----------------------------------
JUNO FUND JUNO FUND
------------------------------------ ----------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002++ 2001++ 2000++ 1999++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ..................... $21.23 $26.40 $25.59 $27.00 $26.10 $25.95
--------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ............. (.05) (.04) .27 1.23 .93 .81
Net Realized and Unrealized Gains
(Losses) on Securities .................. (.46) (5.13) .54 (2.64) .12 (.60)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............... (.51) (5.17) .81 (1.41) 1.05 .21
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................... -- -- -- -- (.15) (.06)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ......................... (.51) (5.17) .81 (1.41) .90 .15
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................... $20.72 $21.23 $26.40 $25.59 $27.00 $26.10
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN ................... (2.40)% (19.53)% 3.17% (5.22)% 3.97% 0.78%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ............................ 1.36%*++++ 1.41%++++ 1.41%++++ 1.33%++++ 1.47% 1.57%
Net Expenses .............................. 1.36%*++++ 1.41%++++ 1.41%++++ 1.33%++++ 1.47% 1.56%
Net Investment Income (Loss) .............. (0.43)%* (0.45)% 1.12% 4.61% 3.39% 3.25%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate** ................. 160% -- -- -- -- --
Net Assets, End of
Period (000's omitted) .................. $420,625 $128,958 $32,293 $10,745 $9,941 $12,789
<FN>
* ANNUALIZED
** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ PER SHARE AMOUNTS FOR THE YEARS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2002
HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE FEBRUARY
10, 2003.
+++ UNAUDITED
++++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
62 & 63 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
------------------------------------- ----------------------------------
U.S. GOVERNMENT U.S. GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
------------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- --------- --------- --------- --------- ---------
Net Investment Income+ .................. --s .01 .02 .05 .04 .04
---------- --------- --------- --------- --------- ---------
Net Increase in Net Asset Value
Resulting from Operations ............. -- .01 .02 .05 .04 .04
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................. --s (.01) (.02) (.05) (.04) (.04)
---------- --------- --------- --------- --------- ---------
Net Increase in Net Asset Value ......... -- -- -- -- -- --
---------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ......................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========== ========= ========= ========== ========= =========
TOTAL INVESTMENT RETURN ................. 0.12% 0.71% 2.35% 5.48% 4.48% 4.55%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 0.88%* 0.92% 0.85% 0.85% 0.89% 0.84%
Net Expenses ............................ 0.88%* 0.92% 0.85% 0.85% 0.88% 0.83%
Net Investment Income ................... 0.24%* 0.71% 2.23% 5.38% 4.36% 4.37%
SUPPLEMENTARY DATA:
Net Assets, End of
Period (000's omitted) ................ $1,208,018 $1,218,676 $979,433 $948,275 $686,198 $949,802
<FN>
* ANNUALIZED
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED
S LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.0012
</FN>
See Notes to Financial Statements.
64 & 65 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
------------------------------------- ----------------------------------
NOVA FUND NOVA FUND
------------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $15.17 $25.11 $26.52 $41.63 $34.78 $26.91
--------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ .......... (.08) (.03) (.01) .16 .31 (.11)
Net Realized and Unrealized Gains
(Losses) on Securities ............... 4.24 (9.91) (1.27) (15.27) 6.55 8.39
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations ...... 4.16 (9.94) (1.28) (15.11) 6.86 8.28
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ -- -- (.13) -- (.01) --
Net Realized Capital Gain ............ -- -- -- -- -- (.41)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ...................... 4.16 (9.94) (1.41) (15.11) 6.85 7.87
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $19.33 $15.17 $25.11 $26.52 $41.63 $34.78
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN ................ 27.42% (39.59)% (4.87)% (36.30)% 19.74% 31.03%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.69%**+++ 1.77%+++ 1.55%+++ 1.87% 1.71% 1.60%**
Net Expenses ........................... 1.69%**+++ 1.77%+++ 1.55%+++ 1.87% 1.70% 1.58%**
Net Investment Income (Loss) ........... (0.91)%** (0.17)% (0.02)% 0.45% 0.87% (0.70)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. 198% 603% 401% 117% 311% 445%
Net Assets, End of
Period (000's omitted) ............... $42,497 $27,130 $59,375 $38,184 $113,248 $36,187
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 15, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
66 & 67 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
------------------------------------- ----------------------------------
URSA FUND URSA FUND
------------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................. $12.70 $10.22 $10.26 $7.61 $8.62 $10.25
--------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ......... (.04) (.06) .09 .43 .30 .21
Net Realized and Unrealized Gains
(Losses) on Securities .............. (2.04) 2.61 (.09) 2.28 (1.25) (1.81)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease)
in Net Asset
Value Resulting from
Operations .......................... (2.08) 2.55 -- 2.71 (.95) (1.60)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ............... -- (.07) (.04) (.06) (.06) (.03)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ..................... (2.08) 2.48 (.04) 2.65 (1.01) (1.63)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ....................... $10.62 $12.70 $10.22 $10.26 $7.61 $8.62
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN ............... (16.38)% 24.95% 0.02% 35.70% (11.03)% (15.68)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................ 1.83%**+++ 1.89%+++ 1.85%+++ 1.86%+++ 1.84% 1.86%**
Net Expenses .......................... 1.83%**+++ 1.89%+++ 1.85%+++ 1.86%+++ 1.83% 1.85%**
Net Investment Income (Loss) .......... (0.78)%** (0.45)% 0.87% 4.92% 3.51% 2.96%**
SUPPLEMENTARY DATA:
Net Assets, End of
Period (000's omitted) .............. $51,191 $39,686 $7,036 $2,860 $4,553 $3,073
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 5, 1998
** ANNUALIZED
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
68 & 69 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------------------- ----------------------------------
OTC FUND OTC FUND
-------------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................. $6.85 $9.97 $11.04 $32.16 $15.86 $10.17
--------- --------- --------- --------- --------- ---------
Net Investment Loss+ .................. (.06) (.11) (.16) (.35) (.33) (.10)
Net Realized and Unrealized Gains
(Losses) on Securities .............. 1.82 (3.01) (.91) (20.60) 16.78 5.88
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........... 1.76 (3.12) (1.07) (20.95) 16.45 5.78
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Realized Capital Gains .......... -- -- -- (.17) (.15) (.09)
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ..................... 1.76 (3.12) (1.07) (21.12) 16.30 5.69
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ....................... $8.61 $6.85 $9.97 $11.04 $32.16 $15.86
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ............... 25.69% (31.29)% (9.69)% (65.40)% 104.26% 57.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................ 1.67%** 1.76% 1.60% 1.67% 1.62% 1.49%**
Net Expenses .......................... 1.67%** 1.76% 1.60% 1.66% 1.61% 1.47%**
Net Investment Loss ................... (1.50)%** (1.56)% (1.47)% (1.50)% (1.47)% (1.31)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............ 74% 180% 109% 228% 385% 773%
Net Assets, End of Period
(000's omitted) ..................... $32,441 $43,839 $20,837 $36,836 $113,948 $6,893
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 22, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 AND MARCH 31, 2000
HAVE BEEN RESTATED TO REFLECT A 3:1 STOCK SPLIT EFFECTIVE APRIL 14, 2000.
+++ UNAUDITED
</FN>
See Notes to Financial Statements.
70 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS
----------------------------------------
U.S.
GOVERNMENT
ARKTOS FUND BOND FUND JUNO FUND
------------- ------------ -------------
PERIOD PERIOD PERIOD
ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2003*++ 2003*++ 2003*++
------------- ------------ -------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................. $29.97 $10.00 $22.41
---------- --------- ---------
Net Investment Income (Loss)+ ......... (.04) .05 (.03)
Net Realized and Unrealized Gains (Losses)
on Securities ....................... (1.14) .78 (1.68)
---------- --------- ---------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations ..... (1.18) .83 (1.71)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ............... -- (.05) --
---------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ..................... (1.18) .78 (1.71)
---------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ....................... $28.79 $10.78 $20.70
---------- --------- ---------
---------- --------- ---------
TOTAL INVESTMENT RETURN ............... (3.94)% 8.37% (7.63)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................ 1.91%**+++ 1.45%** 1.87%**+++
Net Expenses .......................... 1.91%**+++ 1.45%** 1.87%**+++
Net Investment Income (Loss) .......... (0.98)%** 3.17%** (0.94)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............ -- 653% 160%
Net Assets, End of
Period (000's omitted) .............. $2,421 $13,979 $13,326
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED.
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 71
- --------------------------------------------------------------------------------
This page intentionally left blank.
72 & 73 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
------------------------------------- ----------------------------------
U.S. GOVERNMENT MONEY MARKET FUND U.S. GOVERNMENT MONEY MARKET FUND
------------------------------------- ----------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- ---------
Net Investment Income+ ................. --ss.ss. --ss. .02 .05 .04 .04
--------- --------- --------- --------- --------- ---------
Net Increase in Net Asset Value
Resulting from Operations ............ -- -- .02 .05 .04 .04
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ --ss.ss. --ss. (.02) (.05) (.04) (.04)
--------- --------- --------- --------- --------- ---------
Net Increase in Net Asset Value ........ -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN ................ 0.00% 0.27% 1.84% 4.99% 3.94% 4.02%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.35%** 1.41% 1.32% 1.34% 1.41% 1.34%**
Net Expenses ........................... 1.10%** 1.37% 1.32% 1.34% 1.40% 1.33%**
Net Investment Income .................. 0.01%** 0.32% 1.87% 4.87% 3.85% 3.83%**
SUPPLEMENTARY DATA:
Net Assets, End of
Period (000's omitted) ............... $264,645 $187,513 $371,356 $451,796 $212,181 $321,581
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ UNAUDITED
SS. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.003
SS.SS. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00003
</FN>
74 & 75 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
H CLASS H CLASS
------------------------------------- --------------------------------------------------
MEDIUS FUND MEKROS FUND
------------------------------------- --------------------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002* 2003++ 2003 2002 2001*
------------- --------- --------- ------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $16.04 $26.08 $25.00 $12.94 $22.61 $19.99 $25.00
---------- --------- --------- ------------- --------- ---------- ---------
Net Investment Income (Loss) + ......... (.06) (.07) (.03) (.05) (.03) .16 .42
Net Realized and Unrealized Gains
(Losses) on Securities ............... 6.26 (9.86) 1.11 6.88 (9.60) 2.46 (5.43)
---------- --------- --------- ------------- --------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ 6.20 (9.93) 1.08 6.83 (9.63) 2.62 (5.01)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ -- (.11) -- -- -- -- --
Net Realized Capital Gains ........... -- -- -- -- (.04) -- --
---------- --------- --------- ------------- --------- ---------- ---------
Net Increase (Decrease) in
Net Asset Value ...................... 6.20 (10.04) 1.08 6.83 (9.67) 2.62 (5.01)
---------- --------- --------- ------------- --------- ---------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $22.24 $16.04 $26.08 $19.77 $12.94 $22.61 $19.99
========== ========= ========= ============= ========= ========== =========
TOTAL INVESTMENT RETURN ................ 38.65% (38.11)% 4.32% 52.78% (42.63)% 13.11% (20.04)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.63%** 1.69% 1.71%** 1.63%** 1.69% 1.61% 1.74%**
Net Expenses ........................... 1.63%** 1.69% 1.71%** 1.63%** 1.69% 1.61% 1.73%**
Net Investment Income (Loss) ........... (0.53)%** (0.32)% (0.19)%** (0.59)%** (0.20)% 0.74% 4.24%**
SUPPLEMENTAL DATA:
Portfolio Turnover Rate*** ............. 711% 2,322% 893% 464% 746% 714% --
Net Assets, End of
Period (000's omitted) ............... $24,860 $14,634 $116,176 $85,967 $32,101 $120,045 $36,704
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 16, 2001-- MEDIUS FUND;
NOVEMBER 1, 2000--MEKROS FUND.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
77 & 77 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
H CLASS H CLASS
------------------------------------ -----------
LARGE-CAP LARGE-CAP
EUROPE FUND EUROPE FUND
------------------------------------ ------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $9.88 $15.30 $17.72 $25.00
--------- --------- --------- ---------
Net Investment Income (Loss)+ .......... (.04) (.02) .19 .83
Net Realized and Unrealized Gains
(Losses) on Securities ............... 2.98 (5.40) (2.61) (8.11)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ 2.94 (5.42) (2.42) (7.28)
DISTRIBUTIONS TO
SHAREHOLDERS ......................... -- -- -- --
--------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ...................... 2.94 (5.42) (2.42) (7.28)
--------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $12.82 $9.88 $15.30 $17.72
========= ========= ========= =========
TOTAL INVESTMENT RETURN ................ 29.76% (35.42)% (13.66)% (29.12)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.62%** 1.68% 1.76% 2.06%**
Net Expenses ........................... 1.62%** 1.68% 1.76% 2.06%**
Net Investment Income (Loss) ........... (0.56)%** (0.13)% 1.18% 4.03%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. -- -- -- 350%
Net Assets, End of
Period (000's omitted) ............... $5,163 $4,698 $9,697 $9,977
H CLASS
---------------------------------------------------
LARGE-CAP
JAPAN FUND
---------------------------------------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001*++
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $19.05 $27.27 $39.12 $75.00
------------- --------- --------- ---------
Net Investment Income (Loss)+ .......... (.08) (.03) .48 2.07
Net Realized and Unrealized Gains
(Losses) on Securities ............... 8.29 (8.19) (12.33) (37.95)
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ 8.21 (8.22) (11.85) (35.88)
DISTRIBUTIONS TO
SHAREHOLDERS ......................... -- -- -- --
------------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ...................... 8.21 (8.22) (11.85) (35.88)
------------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $27.26 $19.05 $27.27 $39.12
============= ========= ========= =========
TOTAL INVESTMENT RETURN ................ 43.10% (30.14)% (30.29)% (47.84)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.64%** 1.69% 1.84% 1.77%**
Net Expenses ........................... 1.64%** 1.69% 1.84% 1.77%**
Net Investment Income (Loss) ........... (0.69)%** (0.06)% 1.44% 4.17%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. -- -- -- 699%
Net Assets, End of
Period (000's omitted) ............... $67,024 $2,683 $23,873 $14,606
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000-- LARGE-CAP EUROPE FUND
AND LARGE-CAP JAPAN FUND.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
78 & 79 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
------------------------------------- ---------
NOVA FUND NOVA FUND
------------------------------------- ---------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $15.20 $25.28 $26.84 $27.18
--------- --------- --------- ---------
Net Investment Loss+ ................... (.14) (.08) (.18) (.01)
Net Realized and Unrealized Gains
(Losses) on Securities ............... 4.27 (10.00) (1.25) (.33)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ 4.13 (10.08) (1.43) (.34)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ -- -- (.13) --
--------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ...................... 4.13 (10.08) (1.56) (.34)
--------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $19.33 $15.20 $25.28 $26.84
========= ========= ========= =========
TOTAL INVESTMENT RETURN ................ 27.17% (39.87)% (5.37)% (1.25)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 2.22%**+++ 2.28%+++ 2.27%+++ 1.86%**
Net Expenses ........................... 2.22%**+++ 2.28%+++ 2.27%+++ 1.77%**
Net Investment Loss .................... (1.44)%** (0.46)% (0.72)% (0.98)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. 198% 603% 401% 117%
Net Assets, End of
Period (000's omitted) ............... $21,284 $12,627 $10,355 $111
C CLASS
------------------------------------------------
URSA FUND
------------------------------------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $12.80 $10.35 $10.43 $10.29
--------- --------- --------- ---------
Net Investment Income (Loss)+ .......... (.07) (.12) (.03) .01
Net Realized and Unrealized Gains
(Losses) on Securities ............... (2.06) 2.64 (.01) .13
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ (2.13) 2.52 (.04) .14
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ -- (.07) (.04) --
--------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ...................... (2.13) 2.45 (.08) .14
--------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $10.67 $12.80 $10.35 $10.43
========= ========= ========= =========
TOTAL INVESTMENT RETURN ................ (16.64)% 24.35% (0.36)% 1.36%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 2.36%**+++ 2.40%+++ 2.47%+++ 2.15%**+++
Net Expenses ........................... 2.36%**+++ 2.40%+++ 2.47%+++ 2.15%**+++
Net Investment Income (Loss) ........... (1.33)%** (0.97)% (0.34)% 3.04%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. -- -- -- --
Net Assets, End of
Period (000's omitted) ............... $41,396 $17,540 $7,007 $35
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 14, 2001--NOVA FUND; MARCH 15,
2001--URSA FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
80 & 81 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
------------------------------------- ----------
OTC FUND OTC FUND
------------------------------------- ----------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................. $6.86 $10.03 $11.20 $11.95
------------- --------- --------- ---------
Net Investment Loss+ .................. (.08) (.14) (.21) --
Net Realized and Unrealized Gains
(Losses) on Securities .............. 1.81 (3.03) (.96) (.75)
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........... 1.73 (3.17) (1.17) (.75)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ............... -- -- -- --
------------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ..................... 1.73 (3.17) (1.17) (.75)
------------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ....................... $8.59 $6.86 $10.03 $11.20
============= ========= ========= =========
TOTAL INVESTMENT RETURN ............... 25.22% (31.61)% (10.45)% (6.28)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................ 2.20%** 2.26% 2.24% 2.37%**
Net Expenses .......................... 2.20%** 2.26% 2.24% 2.09%**
Net Investment Loss ................... (2.03)%** (1.98)% (2.13)% (2.03)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............ 74% 180% 109% 228%
Net Assets, End of
Period (000's omitted) .............. $12,058 $8,331 $3,545 $32
C CLASS
------------------------------------------------
ARKTOS FUND
------------------------------------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................. $36.92 $31.93 $35.74 $29.14
------------- --------- --------- ---------
Net Investment Income (Loss)+ ......... (.21) 3.08 .43 --
Net Realized and Unrealized Gains
(Losses) on Securities .............. (8.71) 3.05 (3.95) 6.60
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........... (8.92) 6.13 (3.52) 6.60
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ............... -- (1.14) (.29) --
------------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ..................... (8.92) 4.99 (3.81) 6.60
------------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ....................... $28.00 $36.92 $31.93 $35.74
============= ========= ========= =========
TOTAL INVESTMENT RETURN ............... (24.16)% 19.02% (9.80)% 22.65%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ........................ 2.38%**+++ 2.41%+++ 2.38%+++ 2.28%**+++
Net Expenses .......................... 2.38%**+++ 2.41%+++ 2.38%+++ 2.27%**+++
Net Investment Income (Loss) .......... (1.45)%** 8.23% 1.45% 0.00%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............ -- -- -- 1,788%
Net Assets, End of
Period (000's omitted) .............. $17,656 $2,673 $1,996 $22
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001--OTC FUND; MARCH 7,
2001--ARKTOS FUND.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
82 & 83 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
------------------------------------- -------------------------------------------------
MEDIUS FUND MEKROS FUND
------------------------------------- -------------------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002* 2003++ 2003 2002 2001*
------------- --------- --------- ------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ...................... $15.85 $26.00 $24.53 $12.75 $22.47 $19.99 $24.28
--------- --------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ .............. (.13) (.17) (.13) (.12) (.15) (.07) .17
Net Realized and Unrealized Gains
(Losses) on Securities ................... 6.18 (9.87) 1.60 6.78 (9.53) 2.55 (4.46)
--------- --------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ................ 6.05 (10.04) 1.47 6.66 (9.68) 2.48 (4.29)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income .................... -- (.11) -- -- -- -- --
Net Realized Capital Gains ............... -- -- -- -- (.04) -- --
--------- --------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value .......................... 6.05 (10.15) 1.47 6.66 (9.72) 2.48 (4.29)
--------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ............................ $21.90 $15.85 $26.00 $19.41 $12.75 $22.47 $19.99
========= ========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN .................... 38.17% (38.65)% 5.99% 52.24% (43.12)% 12.41% (17.67)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ............................. 2.38%** 2.43% 2.44%** 2.38%** 2.43% 2.44% 2.54%**
Net Expenses ............................... 2.38%** 2.43% 2.44%** 2.38%** 2.43% 2.44% 2.52%**
Net Investment Income (Loss) ............... (1.25)%** (0.95)% (0.96)%** (1.31)%** (0.91)% (0.33)% 3.80%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ................. 711% 2,322% 893% 464% 746% 714% --
Net Assets, End of
Period (000's omitted) ................... $6,638 $5,610 $1,734 $26,471 $13,530 $20,604 $2
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 20, 2001--MEDIUS FUND; JANUARY
23, 2001--MEKROS FUND.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT--TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
84 & 85 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS
------------------------------------
U.S. GOVERNMENT BOND FUND
------------------------------------
PERIOD YEAR PERIOD
ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003 2002*
------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $10.97 $9.12 $9.42
--------- --------- ---------
Net Investment Income (Loss)+ .......... .15 .31 .32
Net Realized and Unrealized Gains
(Losses) on Securities ............... (.16) 1.85 (.32)
--------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ (.01) 2.16 --
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ (.15) (.31) (.30)
--------- --------- ---------
Net Increase (Decrease) in N
et Asset Value ....................... (.16) 1.85 (.30)
--------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $10.81 $10.97 $9.12
========= ========= =========
Total Investment Return ................ (0.06)% 23.93% (0.14)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 1.93%** 1.95% 1.79%**
Net Expenses ........................... 1.93%** 1.95% 1.79%**
Net Investment Income (Loss) ........... 2.87%** 2.86% 3.53%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. 653% 2,404% 860%
Net Assets, End of
Period (000's omitted) ............... $8,527 $2,163 $209
C CLASS
---------------------------------------------------
JUNO FUND
---------------------------------------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002++ 2001*++
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD .................. $20.88 $26.16 $25.59 $25.65
--------- --------- --------- ---------
Net Investment Income (Loss)+ .......... (.15) (.17) .15 --
Net Realized and Unrealized Gains
(Losses) on Securities ............... (.46) (5.11) .42 (.06)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............ (.61) (5.28) .57 (.06)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................ -- -- -- --
--------- --------- --------- ---------
Net Increase (Decrease) in N
et Asset Value ....................... (.61) (5.28) .57 (.06)
--------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ........................ $20.27 $20.88 $26.16 $25.59
========= ========= ========= =========
Total Investment Return ................ (2.92)% (20.13)% 2.23% (0.23)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ......................... 2.36%**++++ 2.40%++++ 2.47%++++ 2.48%**++++
Net Expenses ........................... 2.36%**++++ 2.40%++++ 2.47%++++ 2.48%**++++
Net Investment Income (Loss) ........... (1.43)%** (1.64)% 0.55% 2.70%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ............. 160% -- -- --
Net Assets, End of
Period (000's omitted) ............... $240,357 $60,969 $877 $1,702
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--U.S. GOVERNMENT BOND
FUND; MARCH 28, 2001--JUNO FUND.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 AND MARCH 31, 2002
HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE FEBRUARY
10, 2003.
+++ UNAUDITED.
++++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
</FN>
See Notes to Financial Statements.
86 & 87 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
------------------------------------- -------------------------------------
LARGE-CAP LARGE-CAP
EUROPE FUND JAPAN FUND
------------------------------------- -------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003 2002* 2003+++ 2003++ 2002*++
------------- --------- --------- ------------ --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $9.74 $15.22 $19.09 $18.96 $27.24 $25.65
--------- --------- --------- --------- --------- ---------
Net Investment Loss+ .................... (.08) (.10) (.11) (.19) (.18) (.03)
Net Realized and Unrealized Gains
(Losses) on Securities ................ 2.92 (5.38) (3.76) 8.26 (8.10) 1.62
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. 2.84 (5.48) (3.87) 8.07 (8.28) 1.59
DISTRIBUTIONS TO SHAREHOLDERS ........... -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ....................... 2.84 (5.48) (3.87) 8.07 (8.28) 1.59
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ......................... $12.58 $9.74 $15.22 $27.03 $18.96 $27.24
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN ................. 29.16% (36.01)% (20.27)% 42.56% (30.40)% 6.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 2.37%** 2.45% 2.69%** 2.41%** 2.36% 2.20%**
Net Expenses ............................ 2.37%** 2.45% 2.69%** 2.41%** 2.36% 2.20%**
Net Investment Loss ..................... (1.36)%** (0.96)% (0.82)%** (1.49)%** (0.68)% (0.72)%**
SUPPLEMENTARY DATA:
Net Assets, End of
Period (000's omitted) ................ $996 $1,957 $116 $1,483 $9 $12
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 10, 2001-- LARGE-CAP EUROPE FUND;
MARCH 1, 2002--LARGE-CAP JAPAN FUND.
** ANNUALIZED.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
17, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
88 & 89 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
-------------------------- ----------------------
U.S. GOVERNMENT U.S. GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
-------------------------- ---------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--
BEGINNING OF PERIOD .............................. $1.00 $1.00 $1.00 $1.00
---------- --------- --------- ---------
Net Investment Income+ ............................. --ss --s .01 .02
---------- --------- --------- ---------
Net Increase in Net Asset Value
Resulting from Operations ........................ -- -- .01 .02
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ............................ --ss --s (.01) (.02)
---------- --------- --------- ---------
Net Increase in Net Asset Value .................... -- -- -- --
---------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ..................... $1.00 $1.00 $1.00 $1.00
========== ========= ========= =========
TOTAL INVESTMENT RETURN ............................ 0.00% 0.08% 1.35% 1.97%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ..................................... 1.88%** 1.91% 1.80% 1.79%**
Net Expenses ....................................... 1.11%** 1.50% 1.80% 1.78%**
Net Investment Income .............................. 0.01%** 0.06% 1.13% 4.31%**
SUPPLEMENTARY DATA:
Net Assets, End of Period (000's omitted) .......... $215,400 $201,745 $47,920 $37,514
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 19, 2000--U.S. GOVERNMENT
MONEY MARKET FUND.
** ANNUALIZED.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
S LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.0006
SS LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00003
</FN>
See Notes to Financial Statements.
90
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS
------------------------------
U.S. GOVERNMENT
MONEY MARKET FUND
------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003*
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .......... $1.00 $1.00
------------- ---------
Net Investment Income+ ........................ --s .01
------------- ---------
Net Increase in Net Asset Value
Resulting from Operations ................... -- .01
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ....................... --s (.01)
------------- ---------
Net Increase in Net Asset Value ............... -- --
------------- ---------
NET ASSET VALUE--END OF PERIOD ................ $1.00 $1.00
============= =========
TOTAL INVESTMENT RETURN ....................... 0.29% 0.63%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................ 0.88%** 0.90%**
Net Expenses .................................. 0.55%** 0.55%**
Net Investment Income ......................... 0.57%** 0.80%**
SUPPLEMENTAL DATA:
Net Assets, End of Period (000's omitted)...... $50,000 $60,008
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2002.
** ANNUALIZED.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
S LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00287
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 91
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 88.1%
FINANCIALS 18.4%
DIVERSIFIED FINANCIALS 7.0%
Citigroup, Inc. .......................... 113,800 $ 5,179,038
J.P. Morgan Chase
& Co.+ ................................. 47,300 1,623,809
Freddie Mac+ ............................. 27,900 1,460,565
Merrill Lynch & Co.,
Inc.+ .................................. 27,000 1,445,310
Lehman Brothers
Holdings, Inc.+ ........................ 16,200 1,119,096
Principal Financial
Group, Inc. ............................ 28,000 867,720
Morgan Stanley ........................... 13,100 661,026
Fannie Mae+ .............................. 8,100 568,620
American Express Co. ..................... 11,400 513,684
Capital One Financial
Corp.+ ................................. 8,700 496,248
MBNA Corp. ............................... 17,600 401,280
SLM Corp.+ ............................... 7,200 280,512
Goldman Sachs Group,
Inc. ................................... 1,000 83,900
--------------
TOTAL DIVERSIFIED FINANCIALS 14,700,808
--------------
INSURANCE 6.0%
American International
Group, Inc.+ ........................... 58,700 3,386,990
Allstate Corp. ........................... 35,100 1,282,203
Prudential Financial,
Inc.+ .................................. 31,600 1,180,576
John Hancock
Financial Services,
Inc. ................................... 30,300 1,024,140
XL Capital Ltd. .......................... 12,600 975,744
ACE Ltd. ................................. 28,500 942,780
Jefferson-Pilot Corp. .................... 19,800 878,724
Cincinnati Financial
Corp. .................................. 21,800 871,128
MetLife, Inc. ............................ 26,700 748,935
Ambac Financial
Group, Inc. ............................ 9,600 614,400
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Aon Corp.+ ............................... 29,200 $ 608,820
St. Paul Cos., Inc. ...................... 4,400 162,932
--------------
TOTAL INSURANCE 12,677,372
--------------
BANKS 5.4%
Bank of America
Corp. .................................. 39,600 3,090,384
Wachovia Corp. ........................... 44,700 1,841,193
Washington Mutual,
Inc.+ .................................. 35,700 1,405,509
FleetBoston Financial
Corp. .................................. 46,400 1,398,960
U.S. Bancorp+ ............................ 55,000 1,319,450
Wells Fargo & Co.+ ....................... 18,800 968,200
Huntington Bancshares,
Inc. ................................... 42,000 831,180
Golden West Financial
Corp. .................................. 2,300 205,873
Bank One Corp. ........................... 4,000 154,600
--------------
TOTAL BANKS 11,215,349
--------------
TOTAL FINANCIALS 38,593,529
--------------
INFORMATION TECHNOLOGY 15.4%
SOFTWARE 4.1%
Microsoft Corp.+ ......................... 220,600 6,130,474
Oracle Corp.* ............................ 66,400 745,008
Intuit, Inc.*+ ........................... 8,200 395,568
Computer Associates
International,
Inc.+ .................................. 14,500 378,595
Veritas Software
Corp.* ................................. 7,300 229,220
Symantec Corp.*+ ......................... 3,600 226,872
Citrix Systems, Inc.* .................... 7,600 167,808
Siebel Systems, Inc.* .................... 14,800 143,856
BMC Software, Inc.*+ ..................... 5,000 69,650
Adobe Systems, Inc. ...................... 1,400 54,964
Mercury Interactive
Corp.* ................................. 300 13,623
--------------
TOTAL SOFTWARE 8,555,638
--------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
92
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 4.0%
International Business
Machines Corp.+ ........................ 35,300 $ 3,118,049
Hewlett-Packard Co. ...................... 89,700 1,736,592
Dell, Inc.* .............................. 28,700 958,293
NCR Corp.*+ .............................. 26,900 852,461
EMC Corp./MA*+ ........................... 66,000 833,580
Sun Microsystems,
Inc.* .................................. 101,700 336,627
Lexmark International,
Inc.*+ ................................. 4,100 258,341
Network Appliance,
Inc.* .................................. 6,700 137,551
Gateway, Inc.* ........................... 13,500 76,410
--------------
TOTAL COMPUTERS
& PERIPHERALS 8,307,904
--------------
SEMICONDUCTOR EQUIPMENT
& PRODUCTS 3.5%
Intel Corp. .............................. 149,300 4,107,243
Applied Materials,
Inc.*+ ................................. 49,500 897,930
Analog Devices,
Inc.*+ ................................. 15,200 577,904
Texas Instruments,
Inc. ................................... 15,400 351,120
NVIDIA Corp.*+ ........................... 18,500 294,353
National Semiconductor
Corp.*+ ................................ 8,400 271,236
Maxim Integrated
Products, Inc.+ ........................ 5,700 225,150
Altera Corp.* ............................ 10,500 198,450
KLA-Tencor Corp.*+ ....................... 3,300 169,620
Xilinx, Inc.* ............................ 5,400 153,954
Novellus Systems,
Inc.*+ ................................. 3,200 108,000
LSI Logic Corp.*+ ........................ 11,300 101,587
Applied Micro Circuits
Corp.* ................................. 1,500 7,305
--------------
TOTAL SEMICONDUCTOR EQUIPMENT
& PRODUCTS 7,463,852
--------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 2.6%
Cisco Systems, Inc.*+ .................... 166,400 $ 3,251,456
QUALCOMM, Inc.+ .......................... 20,200 841,128
Comverse Technology,
Inc.*+ ................................. 23,300 348,568
Tellabs, Inc.* ........................... 45,900 311,661
Andrew Corp.*+ ........................... 23,500 288,815
Scientific-Atlanta, Inc. ................. 8,600 267,890
Corning, Inc.*+ .......................... 15,300 144,126
QLogic Corp.* ............................ 1,800 84,618
Lucent Technologies,
Inc.*+ ................................. 14,900 32,184
--------------
TOTAL COMMUNICATIONS
EQUIPMENT 5,570,446
--------------
ELECTRONIC EQUIPMENT
& INSTRUMENTS 0.5%
Thermo Electron
Corp.* ................................. 22,100 479,570
Sanmina-SCI Corp.* ....................... 27,200 263,840
Symbol Technologies,
Inc. ................................... 9,900 118,305
PerkinElmer, Inc. ........................ 7,500 114,825
Solectron Corp.* ......................... 9,400 54,990
--------------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 1,031,530
--------------
IT CONSULTING & SERVICES 0.4%
First Data Corp.+ ........................ 9,300 371,628
Automatic Data
Processing, Inc. ....................... 5,000 179,250
Unisys Corp.*+ ........................... 11,000 148,830
Concord EFS, Inc.* ....................... 8,300 113,461
Electronic Data Systems
Corp.+ ................................. 2,100 42,420
SunGard Data Systems,
Inc.* .................................. 1,500 39,465
--------------
TOTAL IT CONSULTING & SERVICES 895,054
--------------
INTERNET SOFTWARE & SERVICES 0.2%
Yahoo!, Inc.*+ ........................... 9,500 336,110
--------------
TOTAL INTERNET SOFTWARE
& SERVICES 336,110
--------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 93
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS 0.1%
Xerox Corp.*+ ............................ 25,700 $ 263,682
--------------
TOTAL OFFICE ELECTRONICS 263,682
--------------
TOTAL INFORMATION
TECHNOLOGY 32,424,216
--------------
HEALTH CARE 12.0%
PHARMACEUTICALS 6.8%
Pfizer, Inc.+ ............................ 133,800 4,064,844
Merck & Co., Inc.+ ....................... 60,001 3,037,251
Johnson & Johnson,
Inc. ................................... 44,600 2,208,592
Wyeth .................................... 28,000 1,290,800
Bristol-Myers Squibb
Co. .................................... 46,000 1,180,360
Eli Lilly & Co. .......................... 11,300 671,220
Watson Pharmaceuticals,
Inc.*+ ................................. 14,000 583,660
Abbott Laboratories ...................... 12,900 548,895
Forest Laboratories,
Inc.*+ ................................. 9,300 478,485
King Pharmaceuticals,
Inc.* .................................. 15,700 237,855
--------------
TOTAL PHARMACEUTICALS 14,301,962
--------------
HEALTH CARE PROVIDERS & SERVICES 2.6%
UnitedHealth Group,
Inc. ................................... 24,200 1,217,744
Quest Diagnostics,
Inc.*+ ................................. 14,700 891,408
Manor Care, Inc.+ ........................ 28,900 867,000
Anthem, Inc.* ............................ 10,700 763,231
WellPoint Health
Networks, Inc.* ........................ 7,200 554,976
McKesson Corp.+ .......................... 14,000 466,060
Humana, Inc.* ............................ 19,100 344,755
Tenet Healthcare
Corp.*+ ................................ 7,500 108,600
Express Scripts, Inc.*+ .................. 1,600 97,840
Medco Health
Solutions, Inc.* ....................... 3,700 95,941
Cardinal Health, Inc. .................... 1,300 75,907
CIGNA Corp. .............................. 800 35,720
--------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TOTAL HEALTH CARE PROVIDERS
& SERVICES $ 5,519,182
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.7%
Becton, Dickinson
& Co. .................................. 25,599 924,636
Medtronic, Inc.+ ......................... 18,000 844,560
Boston Scientific
Corp.* ................................. 9,500 606,100
Biomet, Inc.+ ............................ 16,100 541,121
Bausch & Lomb, Inc.+ ..................... 10,000 441,500
C.R. Bard, Inc. 1,300 92,300
Baxter International,
Inc. ................................... 3,000 87,180
St. Jude Medical, Inc.* .................. 400 21,508
--------------
TOTAL HEALTH CARE EQUIPMENT
& SUPPLIES 3,558,905
--------------
BIOTECHNOLOGY 0.9%
Amgen, Inc.*+ ............................ 20,200 1,304,314
Biogen, Inc.* ............................ 8,200 313,486
Genzyme Corp.* ........................... 6,200 286,750
--------------
TOTAL BIOTECHNOLOGY 1,904,550
--------------
TOTAL HEALTH CARE 25,284,599
--------------
CONSUMER STAPLES 10.1%
FOOD & DRUG RETAILING 3.9%
Wal-Mart Stores, Inc.+ ................... 98,400 5,495,640
Costco Wholesale
Corp.*+ ................................ 32,400 1,006,992
SUPERVALU, Inc. .......................... 21,200 505,832
Sysco Corp.+ ............................. 13,400 438,314
Kroger Co.* .............................. 24,300 434,241
CVS Corp.+ ............................... 13,600 422,416
--------------
TOTAL FOOD & DRUG RETAILING 8,303,435
--------------
BEVERAGES 1.9%
PepsiCo, Inc. ............................ 51,300 2,351,079
Coca-Cola Co. ............................ 32,400 1,391,904
Coors (Adolph)--
Class B ................................ 3,500 188,160
Anheuser-Busch Cos.,
Inc.+ .................................. 2,300 113,482
--------------
TOTAL BEVERAGES 4,044,625
--------------
*NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
94
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 1.9%
Procter & Gamble
Co.+ ................................... 34,600 $ 3,211,572
Clorox Co. ............................... 17,100 784,377
--------------
TOTAL HOUSEHOLD PRODUCTS 3,995,949
--------------
TOBACCO 1.1%
Altria Group, Inc. ....................... 50,600 2,216,280
--------------
TOTAL TOBACCO 2,216,280
--------------
FOOD PRODUCTS 0.9%
Sara Lee Corp. ........................... 55,000 1,009,800
Archer-Daniels-Midland
Co. .................................... 47,000 616,170
McCormick & Co.,
Inc. ................................... 6,400 175,488
Kellogg Co. .............................. 2,400 80,040
--------------
TOTAL FOOD PRODUCTS 1,881,498
--------------
PERSONAL PRODUCTS 0.4%
Alberto-Culver Co.--
Class B ................................ 14,300 841,126
--------------
TOTAL PERSONAL PRODUCTS 841,126
--------------
TOTAL CONSUMER STAPLES 21,282,913
--------------
CONSUMER DISCRETIONARY 9.8%
MEDIA 4.5%
Viacom, Inc.--Class B .................... 51,900 1,987,770
Walt Disney Co.+ ......................... 77,600 1,565,192
AOL Time Warner,
Inc.*+ ................................. 96,900 1,464,159
Comcast Corp.--
Class A*+ .............................. 40,600 1,253,728
Tribune Co. .............................. 22,400 1,028,160
Omnicom Group,
Inc.+ .................................. 9,100 653,835
Clear Channel
Communications,
Inc.+ .................................. 16,300 624,290
Dow Jones & Co., Inc. .................... 9,300 440,355
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Univision
Communications,
Inc.--Class A* ......................... 12,600 $ 402,318
--------------
TOTAL MEDIA 9,419,807
--------------
SPECIALTY RETAIL 2.0%
Home Depot, Inc. ......................... 40,300 1,283,555
Staples, Inc.*+ .......................... 28,900 686,375
Lowe's Cos., Inc.+ ....................... 12,600 653,940
Gap, Inc.+ ............................... 24,900 426,288
Sherwin-Williams Co. ..................... 14,100 414,681
RadioShack Corp. ......................... 9,600 272,736
Limited Brands, Inc. ..................... 12,600 190,008
Best Buy Co., Inc.* ...................... 3,600 171,072
AutoNation, Inc.*+ ....................... 7,100 124,534
--------------
TOTAL SPECIALTY RETAIL 4,223,189
--------------
HOTELS RESTAURANTS & LEISURE 1.0%
McDonald's Corp. ......................... 23,800 560,252
Starwood Hotels &
Resorts Worldwide,
Inc. ................................... 13,600 473,280
Hilton Hotels Corp.+ ..................... 27,900 452,538
Starbucks Corp.*+ ........................ 14,600 420,480
Marriott International,
Inc.--Class A+ ......................... 6,300 271,089
--------------
TOTAL HOTELS RESTAURANTS
& LEISURE 2,177,639
--------------
HOUSEHOLD DURABLES 0.7%
KB Home .................................. 10,400 620,464
Whirlpool Corp.+ ......................... 6,400 433,728
Centex Corp.+ ............................ 2,100 163,548
Snap-on, Inc.+ ........................... 5,900 163,135
Fortune Brands, Inc. ..................... 2,400 136,200
Cavco Industries,
Inc.* .................................. 384 8,256
--------------
TOTAL HOUSEHOLD DURABLES 1,525,331
--------------
TEXTILES & APPAREL 0.6%
Reebok International
Ltd.+ .................................. 14,400 481,392
Nike, Inc.--Class B ...................... 6,800 413,576
Liz Claiborne, Inc. ...................... 7,100 241,755
--------------
TOTAL TEXTILES & APPAREL 1,136,723
--------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 95
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MULTILINE RETAIL 0.4%
Federated Department
Stores, Inc.+ .......................... 12,600 $ 527,940
Sears Roebuck and
Co.+ ................................... 5,400 236,142
Dollar General Corp. ..................... 4,800 96,000
Family Dollar Stores,
Inc. ................................... 1,500 59,835
--------------
TOTAL MULTILINE RETAIL 919,917
--------------
INTERNET & CATALOG RETAIL 0.3%
eBay, Inc.*+ ............................. 10,900 583,259
--------------
TOTAL INTERNET & CATALOG
RETAIL 583,259
--------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Hasbro, Inc. ............................. 13,600 254,048
Eastman Kodak Co.+ ....................... 6,600 138,204
--------------
TOTAL LEISURE EQUIPMENT
& PRODUCTS 392,252
--------------
AUTOMOBILES 0.1%
Ford Motor Co.+ .......................... 9,600 103,392
--------------
TOTAL AUTOMOBILES 103,392
--------------
AUTO COMPONENTS 0.0%
Dana Corp. ............................... 1,700 26,231
--------------
TOTAL AUTO COMPONENTS 26,231
--------------
TOTAL CONSUMER
DISCRETIONARY 20,507,740
--------------
INDUSTRIALS 9.3%
INDUSTRIAL CONGLOMERATES 3.8%
General Electric Co. ..................... 195,900 5,839,779
Tyco International
Ltd.+ .................................. 76,400 1,560,852
3M Co.+ .................................. 5,400 372,978
Textron, Inc. ............................ 7,700 303,765
--------------
TOTAL INDUSTRIAL
CONGLOMERATES 8,077,374
--------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MACHINERY 1.6%
Parker Hannifin Corp. .................... 17,500 $ 782,250
Eaton Corp.+ ............................. 8,100 717,822
Caterpillar, Inc. ........................ 10,300 709,052
Ingersoll-Rand Co.--
Class A ................................ 6,900 368,736
Danaher Corp. ............................ 4,500 332,370
PACCAR, Inc. ............................. 4,000 298,760
Pall Corp. ............................... 1,700 38,148
Navistar International
Corp.*+ ................................ 900 33,552
Cummins, Inc. ............................ 300 13,329
--------------
TOTAL MACHINERY 3,294,019
--------------
AEROSPACE & DEFENSE 1.0%
United Technologies
Corp. .................................. 11,400 880,992
Goodrich Corp. ........................... 14,500 351,480
General Dynamics
Corp. .................................. 3,100 241,986
Rockwell Collins, Inc. ................... 9,400 237,350
Boeing Co. ............................... 6,200 212,846
Northrop Grumman
Corp. .................................. 900 77,598
Honeywell
International, Inc. .................... 2,600 68,510
--------------
TOTAL AEROSPACE & DEFENSE 2,070,762
--------------
COMMERCIAL SERVICES & SUPPLIES 0.6%
Cendant Corp.*+ .......................... 50,900 951,321
Waste Management,
Inc.+ .................................. 11,300 295,721
Monster Worldwide,
Inc.*+ ................................. 2,600 65,468
--------------
TOTAL COMMERCIAL SERVICES
& SUPPLIES 1,312,510
--------------
ELECTRICAL EQUIPMENT 0.6%
Rockwell Automation,
Inc. ................................... 15,300 401,625
Thomas & Betts
Corp.* ................................. 24,500 388,325
Cooper Industries
Ltd.--Class A .......................... 7,500 360,225
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
96
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
American Power
Conversion Corp. ....................... 8,900 $ 152,546
--------------
TOTAL ELECTRICAL EQUIPMENT 1,302,721
--------------
AIR FREIGHT & COURIERS 0.5%
United Parcel Service,
Inc.--Class B+ ......................... 10,700 682,660
FedEx Corp. .............................. 5,900 380,137
--------------
TOTAL AIR FREIGHT & COURIERS 1,062,797
--------------
ROAD & RAIL 0.5%
Union Pacific Corp. ...................... 17,400 1,012,158
--------------
TOTAL ROAD & RAIL 1,012,158
--------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
W.W. Grainger, Inc. ...................... 16,800 798,840
--------------
TOTAL TRADING COMPANIES
& DISTRIBUTORS 798,840
--------------
BUILDING PRODUCTS 0.2%
Masco Corp.+ ............................. 21,500 526,320
--------------
TOTAL BUILDING PRODUCTS 526,320
--------------
AIRLINES 0.1%
Southwest Airlines Co. ................... 9,400 166,380
--------------
TOTAL AIRLINES 166,380
--------------
TOTAL INDUSTRIALS 19,623,881
--------------
ENERGY 5.0%
OIL & GAS 4.8%
Exxon Mobil Corp. ........................ 154,200 5,643,720
ConocoPhillips ........................... 27,000 1,478,250
ChevronTexaco Corp. ...................... 13,500 964,575
EOG Resources, Inc.+ ..................... 19,900 830,626
Sunoco, Inc. ............................. 19,900 800,378
Devon Energy Corp.+ ...................... 8,900 428,891
--------------
TOTAL OIL & GAS 10,146,440
--------------
ENERGY EQUIPMENT & SERVICES 0.2%
Halliburton Co. .......................... 10,800 261,900
Nabors Industries
Ltd.* .................................. 1,800 67,068
BJ Services Co.*+ ........................ 600 20,502
--------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TOTAL ENERGY EQUIPMENT
& SERVICES $ 349,470
--------------
TOTAL ENERGY 10,495,910
--------------
TELECOMMUNICATION SERVICES 3.1%
DIVERSIFIED TELECOMMUNICATION SERVICES 2.5%
SBC Communications,
Inc. ................................... 61,200 1,361,700
Verizon
Communications,
Inc. ................................... 37,900 1,229,476
ALLTEL Corp.+ ............................ 22,600 1,047,284
Sprint Corp.-FON
Group+ ................................. 68,700 1,037,370
AT&T Corp. ............................... 19,100 411,605
BellSouth Corp.+ ......................... 7,500 177,600
--------------
TOTAL DIVERSIFIED
TELECOMMUNICATION
SERVICES 5,265,035
--------------
WIRELESS TELECOMMUNICATION
SERVICES 0.6%
AT&T Wireless Services,
Inc.*+ ................................. 80,800 660,944
Nextel Communications,
Inc.--Class A*+ ........................ 21,700 427,273
Sprint Corp.-PCS
Group*+ ................................ 17,700 101,421
--------------
TOTAL WIRELESS TELECOMMUNICATION
SERVICES 1,189,638
--------------
TOTAL TELECOMMUNICATION
SERVICES 6,454,673
--------------
UTILITIES 2.5%
ELECTRIC UTILITIES 1.5%
Entergy Corp. ............................ 15,800 855,570
Exelon Corp. ............................. 11,200 711,200
Public Service
Enterprise Group,
Inc.+ .................................. 9,400 394,800
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 97
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Pinnacle West Capital
Corp. .................................. 10,500 $ 372,750
FPL Group, Inc. .......................... 3,600 227,520
Dominion Resources,
Inc. /VA+ .............................. 2,200 136,180
Cinergy Corp. ............................ 3,500 128,450
PG&E Corp.* .............................. 4,900 117,110
Edison International*+ ................... 5,800 110,780
TXU Corp.+ ............................... 3,600 84,816
--------------
TOTAL ELECTRIC UTILITIES 3,139,176
--------------
GAS UTILITIES 0.8%
Peoples Energy
Corp.+ ................................. 19,400 802,772
Sempra Energy ............................ 11,300 331,768
Kinder Morgan, Inc. ...................... 4,000 216,040
Nicor, Inc.+ ............................. 4,800 168,672
NiSource, Inc.+ .......................... 7,700 153,846
--------------
TOTAL GAS UTILITIES 1,673,098
--------------
MULTI-UTILITIES 0.2%
Constellation Energy
Group, Inc. ............................ 6,900 246,882
Duke Energy Corp.+ ....................... 6,200 110,422
Williams Cos., Inc.+ ..................... 10,000 94,200
AES Corp.*+ .............................. 5,300 39,326
Dynegy, Inc.--
Class A*+ .............................. 9,100 32,760
--------------
TOTAL MULTI-UTILITIES 523,590
--------------
TOTAL UTILITIES 5,335,864
--------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MATERIALS 2.5%
CHEMICALS 1.2%
Monsanto Co.+ ............................ 34,300 $ 821,142
PPG Industries, Inc. ..................... 13,800 720,636
Engelhard Corp. .......................... 19,500 539,565
E.I. du Pont de
Nemours & Co. .......................... 3,300 132,033
Dow Chemical Co. ......................... 3,200 104,128
Sigma-Aldrich Corp.+ ..................... 1,700 88,298
--------------
TOTAL CHEMICALS 2,405,802
--------------
METALS & MINING 0.9%
Alcoa, Inc.+ ............................. 43,200 1,130,112
Freeport-McMoRan
Copper & Gold,
Inc.--Class B+ ......................... 14,000 463,400
Newmont Mining
Corp.+ ................................. 8,700 340,083
--------------
TOTAL METALS & MINING 1,933,595
--------------
PAPER & FOREST PRODUCTS 0.3%
Weyerhaeuser Co.+ ........................ 9,300 543,585
--------------
TOTAL PAPER & FOREST PRODUCTS 543,585
--------------
CONTAINERS & PACKAGING 0.1%
Pactiv Corp.* ............................ 13,700 277,836
--------------
TOTAL CONTAINERS & PACKAGING 277,836
--------------
TOTAL MATERIALS 5,160,818
--------------
TOTAL COMMON STOCKS
(Cost $162,866,514) ....................... 185,164,143
--------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE
10.
See Notes to Financial Statements.
98
NOVA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
OPTIONS PURCHASED 0.2% Call Options on:
December 2003 S&P 500 Index Futures Contracts,
Expiring December 2003 with strike price of 600 5 $ 491,625
Put Options on:
December 2003 S&P 500 Index Futures Contracts,
Expiring December 2003 with strike price of 575 600 22,500
--------------
TOTAL OPTIONS PURCHASED
(Cost $548,680) ............................... 514,125
--------------
FACE
AMOUNT
-------
REPURCHASE AGREEMENTS 11.7% Repurchase Agreement (Note 6)
0.96% due 10/01/03 ............................ $5,482,606 5,482,606
0.94% due 10/01/03 ............................ 390,287 390,287
0.93% due 10/01/03 ............................ 5,482,606 5,482,606
0.91% due 10/01/03 ............................ 5,482,606 5,482,606
0.90% due 10/01/03 ............................ 7,740,150 7,740,150
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $24,578,255) ............................ 24,578,255
--------------
TOTAL INVESTMENTS 100%
(Cost $187,993,449) ........................... $ 210,256,523
--------------
--------------
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 S&P 500 Index Futures Contracts
(Aggregate Market Value of
Contracts $78,758,650) ....................... 317 $ (1,731,162)
December 2003 S&P 500 Index Mini Futures Contracts
(Aggregate Market Value of
Contracts $62,289,763) ....................... 1,253 (1,223,878)
--------------
(TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $141,048,413) $ (2,955,040)
--------------
--------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 99
URSA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 71.0%
Farmer Mac
0.99% due 10/01/03 ............................ $ 50,000,000 $ 50,000,000
0.98% due 10/01/03 ............................ 25,000,000 25,000,000
Federal Home Loan Bank
1.00% due 10/22/03 ............................ 100,000,000 99,941,667
1.02% due 10/24/03 ............................ 100,000,000 99,934,833
0.98% due 10/03/03 ............................ 50,000,000 49,997,278
1.02% due 11/28/03 ............................ 50,000,000 49,917,833
1.03% due 10/06/03 ............................ 25,000,000 24,996,424
1.02% due 11/26/03 ............................ 25,000,000 24,960,333
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $424,748,368) ........................... 424,748,368
-------------
CONTRACTS
---------
OPTIONS PURCHASED 2.1%
Call Options on:
December 2003 S&P 500 Index Futures Contracts
Expiring December 2003 with strike price of 1350 .... 2,250 --
Put Options on:
December 2003 S&P 500 Index Futures Contracts
Expiring December 2003 with strike price of 1300 .... 165 12,610,125
-------------
TOTAL OPTIONS PURCHASED
(Cost $11,670,345) .................................. 12,610,125
-------------
FACE
AMOUNT
-------
REPURCHASE AGREEMENTS 26.9%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 ............................ $35,979,612 35,979,612
0.94% due 10/01/03 ............................ 2,561,255 2,561,255
0.93% due 10/01/03 ............................ 35,979,612 35,979,612
0.91% due 10/01/03 ............................ 35,979,612 35,979,612
0.90% due 10/01/03 ............................ 50,794,747 50,794,747
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $161,294,838) ........................... 161,294,838
-------------
TOTAL INVESTMENTS 100%
(Cost $597,713,551) ........................... $ 598,653,331
-------------
-------------
See Notes to Financial Statements.
100
URSA MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2003 S&P 500 Index Futures Contracts
(Aggregate Market Value of Contracts $64,100,100) .... 258 $ 937,049
December 2003 S&P 500 Index Mini Futures Contracts
(Aggregate Market Value of Contracts $530,929,500) ... 10,680 12,709,854
-------------
(TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $595,029,600) $ 13,646,903
-------------
-------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 101
ARKTOS MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 68.1%
Fannie Mae
1.05% due 10/01/03 .............................. $50,000,000 $ 50,000,000
Federal Home Loan Bank
1.01% due 10/22/03 .............................. 50,000,000 49,970,542
1.04% due 11/14/03 .............................. 25,000,000 24,968,222
1.00% due 10/22/03 .............................. 20,000,000 19,988,333
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $144,927,097) ............................. 144,927,097
-------------
CONTRACTS
---------
OPTIONS PURCHASED 0.0%
Call Options on:
December 2003 Nasdaq 100 Index Futures Contracts
Expiring December 2003 with strike price of 2000 230 --
-------------
TOTAL OPTIONS PURCHASED
(Cost $5,670) ................................... --
-------------
FACE
AMOUNT
-------
REPURCHASE AGREEMENTS 31.9%
Repurchase Agreement (Note 6)
0.96% due 10/01/03 .............................. $15,140,454 15,140,454
0.94% due 10/01/03 .............................. 1,077,793 1,077,793
0.93% due 10/01/03 .............................. 15,140,454 15,140,454
0.91% due 10/01/03 .............................. 15,140,454 15,140,454
0.90% due 10/01/03 .............................. 21,374,759 21,374,759
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $67,873,914) .............................. 67,873,914
-------------
TOTAL INVESTMENTS 100%
(Cost $212,806,681) ............................. $212,801,011
-------------
-------------
See Notes to Financial Statements.
102
ARKTOS MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2003 Nasdaq 100 Index Futures Contracts
(Aggregate Market Value of Contracts $3,134,400) .... 24 $ 369,503
December 2003 Nasdaq 100 Index Mini Futures Contracts
(Aggregate Market Value of Contracts $26,642,400) ... 1,020 139,461
-------------
(TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $29,776,800) $ 508,964
-------------
-------------
UNITS
-----
EQUITY INDEX SWAP AGREEMENT
October 2003 Nasdaq 100 Index Swap, Maturing 10/11/03*
(Notional Value $216,610,417) ....................... 163,957 $ 3,809,689
-------------
-------------
*PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 103
JUNO MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 49.0%
Fannie Mae
1.02% due 10/22/03 ............................ $ 50,000,000 $ 49,970,250
Farmer Mac
0.98% due 10/01/03 ............................ 50,000,000 50,000,000
1.03% due 12/19/03 ............................ 25,000,000 24,943,493
1.01% due 10/20/03 ............................ 24,650,000 24,636,860
1.04% due 10/30/03 ............................ 15,000,000 14,987,433
Federal Home Loan Bank
1.00% due 10/03/03 ............................ 50,500,000 50,497,195
1.02% due 10/03/03 ............................ 50,000,000 49,997,167
1.01% due 10/10/03 ............................ 50,000,000 49,987,375
1.00% due 10/17/03 ............................ 50,000,000 49,977,778
1.00% due 10/22/03 ............................ 50,000,000 49,970,833
1.01% due 10/22/03 ............................ 50,000,000 49,970,542
1.02% due 10/28/03 ............................ 50,000,000 49,961,750
1.02% due 10/15/03 ............................ 40,000,000 39,984,133
1.03% due 10/08/03 ............................ 25,000,000 24,994,993
1.00% due 10/15/03 ............................ 25,000,000 24,990,278
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $604,870,080) ........................... 604,870,080
-------------
CONTRACTS
----------
OPTIONS PURCHASED 0.0%
Call Options on:
December 2003 U.S. Treasury Bond Futures Contracts
Expiring December 2003 with strike price 1320 . 2,000 31,250
December 2003 U.S. Treasury Bond Futures Contracts
Expiring December 2003 with strike price 1300 . 1,818 28,406
December 2003 U.S. Treasury Bond Futures Contracts
Expiring December 2003 with strike price of 1280 104 1,625
-------------
TOTAL OPTIONS PURCHASED
(Cost $84,832) ................................ $ 61,281
-------------
See Notes to Financial Statements.
104
JUNO MASTER PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 51.0%
Joint Repurchase Agreement (Note 6)
0.96% due 10/01/03 ............................ $ 16,790,891 $ 16,790,891
0.94% due 10/01/03 ............................ 1,195,281 1,195,281
0.93% due 10/01/03 ............................ 16,790,891 16,790,891
0.91% due 10/01/03 ............................ 16,790,891 16,790,891
0.90% due 10/01/03 ............................ 23,704,786 23,704,786
Individual Repurchase Agreement
Lehman Brothers, Inc. at 0.75%
due 10/01/03 .................................. 553,155,000 553,155,000
--------------
(Secured by U.S. Treasury Bonds, at a rate of 5.375% and maturing
2/15/31, as collateral with a market value of $567,849,624)
TOTAL REPURCHASE AGREEMENTS
(Cost $628,427,740) ........................... 628,427,740
--------------
TOTAL INVESTMENTS 100%
(Cost $1,233,382,652) ......................... $1,233,359,101
--------------
--------------
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2003 U.S. Treasury
Bond Futures Contracts
(Aggregate Market Value of
Contracts $123,768,375) ....................... 1,102 $ (7,887,831)
-------------
-------------
FACE
AMOUNT
-------
U.S. TREASURY OBLIGATIONS SOLD SHORT
U.S. Treasury Bond
(Market Value $567,177,063) ................... $527,300,000 $ 23,881,786
-------------
-------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 105
- --------------------------------------------------------------------------------
This page intentionally left blank.
106 & 107 SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER ARKTOS MASTER JUNO MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------- -------------
ASSETS
Securities at Value* (Note 1, 2 and 6) .................... $210,256,523 $598,653,331 $212,801,011 $1,233,359,101
Collateral for Securities Loaned (Note 10) ................ 49,741,480 -- -- --
Segregated Cash with Broker ............................... 7,637,860 22,834,935 24,146,572 2,418,303
Receivable for Equity Index Swap
Settlement (Note 1) ..................................... -- -- 2,936,373 --
Receivable for Futures Contracts
Settlement (Note 1) ..................................... -- 5,727,390 684,000 --
Receivable for Shares Purchased ........................... 1,930,621 11,573,758 7,278,980 15,474,522
Investment Income Receivable (Note 1) ..................... 226,622 4,135 1,740 13,453
------------ ------------ ------------ --------------
TOTAL ASSETS ............................................ 269,793,106 638,793,549 247,848,676 1,251,265,379
------------ ------------ ------------ --------------
LIABILITIES
Short Sale at Market Value ................................ -- -- -- 567,177,062
Payable to Cover Short Sale ............................... -- -- -- 3,388,219
Payable for Futures Contracts Settlement (Note 1) ......... 1,447,567 -- -- 2,169,563
Payable upon Return of Securities Loaned (Note 10) ........ 49,741,480 -- -- --
Payable for Securities Purchased (Note 1) ................. -- 1,450 -- --
Investment Advisory Fee Payable (Note 4) .................. 131,183 355,397 113,882 490,670
Custody Fees Payable ...................................... 5,772 13,031 4,175 17,991
Interest Payable .......................................... -- -- -- 3,641,438
Payable to "Feeder" Fund .................................. 899 978 433 102
------------ ------------ ------------ --------------
TOTAL LIABILITIES ....................................... 51,326,901 370,856 118,490 576,885,045
------------ ------------ ------------ --------------
NET ASSETS (NOTE 9) ....................................... $218,466,205 $638,422,693 $247,730,186 $ 674,380,334
------------ ------------ ------------ --------------
------------ ------------ ------------ --------------
Shares Outstanding ........................................ 6,226,842 9,401,167 3,655,529 18,474,458
Net Asset Value Per Share ................................. $35.08 $67.91 $67.77 $36.50
<FN>
* THE COST OF SECURITIES AT VALUE IS $187,993,449, $597,713,551, $212,806,681
AND $1,233,382,652, RESPECTIVELY.
</FN>
See Notes to Financial Statements.
108 & 109 SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003
- --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER ARKTOS MASTER JUNO MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- ------------- -----------
INVESTMENT INCOME
Interest (Note 1) ........................................ $ 197,037 $ 3,041,560 $ 837,234 $ 4,288,833
Interest from Securities Lending ......................... 891 -- -- --
Interest Related to Securities Sold Short ................ -- -- -- (10,957,806)
Dividends, Net of Foreign Tax Withheld* (Note 1) ......... 1,370,802 -- -- --
----------- ------------- ------------ ------------
Total Income ........................................... 1,568,730 3,041,560 837,234 (6,668,973)
----------- ------------- ------------ ------------
EXPENSES
Advisory Fees (Note 4) ................................... 748,781 2,596,154 695,466 2,055,166
Custodian Fees ........................................... 34,939 100,039 26,731 76,749
----------- ------------- ------------ ------------
Total Expenses ......................................... 783,720 2,696,193 722,197 2,131,915
----------- ------------- ------------ ------------
Net Investment Income (Loss) ............................... 785,010 345,367 115,037 (8,800,888)
----------- ------------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities .................................... 7,982,465 (7,945,497) (15,255) (131,591)
Equity Index Swaps ....................................... -- -- (52,188,561) --
Futures Contracts ........................................ 25,521,581 (124,824,345) (3,525,649) 2,376,081
Securities Sold Short .................................... -- -- -- (14,357,019)
----------- ------------- ------------ ------------
Total Net Realized Gain (Loss) ......................... 33,504,046 (132,769,842) (55,729,465) (12,112,529)
----------- ------------- ------------ ------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities .................................... 15,375,301 1,913,972 4,655 (8,413)
Equity Index Swaps ....................................... -- -- 9,208,573 --
Futures Contracts ........................................ (6,031,920) 16,647,940 372,492 (7,887,831)
Securities Sold Short .................................... -- -- -- 22,426,647
----------- ------------- ------------ ------------
Net Change in Unrealized Appreciation .................... 9,343,381 18,561,912 9,585,720 14,530,403
----------- ------------- ------------ ------------
Net Gain (Loss) on Investments ......................... 42,847,427 (114,207,930) (46,143,745) 2,417,874
----------- ------------- ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ..................................... $43,632,437 $(113,862,563) $(46,028,708) $ (6,383,014)
----------- ------------- ------------ ------------
----------- ------------- ------------ ------------
<FN>
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0 AND $0, RESPECTIVELY.
</FN>
See Notes to Financial Statements.
110 & 111 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO URSA MASTER PORTFOLIO
----------------------------- ------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003
------------- -------------- ------------- -------------
FROM OPERATIONS
Net Investment Income ....................... $ 785,010 $ 1,742,165 $ 345,367 $ 2,318,053
Net Realized Gain (Loss) on Investments ..... 33,504,046 (88,638,582) (132,769,842) 70,464,591
Net Change in Unrealized Appreciation
(Depreciation) on Investments ............. 9,343,381 (26,259,052) 18,561,912 (4,992,677)
------------ -------------- ------------- -------------
Net Increase (Decrease) in Net
Assets from Operations .................... 43,632,437 (113,155,469) (113,862,563) 67,789,967
------------ -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income ....................... -- (1,743,024) (358,768) (2,319,041)
------------ -------------- ------------- -------------
SHARE TRANSACTIONS
Net Proceeds from Shares Purchased .......... 391,771,033 1,149,165,455 1,326,385,238 1,741,880,149
Net Value of Shares Purchased through
Dividend Reinvestment ..................... -- 1,048,100 358,768 2,454,899
Net Cost of Shares Redeemed ................. (387,730,225) (1,156,513,695) (1,103,162,473) (1,509,228,411)
------------ -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS ..................... 4,040,808 (6,300,140) 223,581,533 235,106,637
------------ -------------- ------------- -------------
Net Increase (Decrease) in Net Assets ....... 47,673,245 (121,198,633) 109,360,202 300,577,563
NET ASSETS--BEGINNING OF PERIOD ............... 170,792,960 291,991,593 529,062,491 228,484,928
------------ -------------- ------------- -------------
NET ASSETS--END OF PERIOD ..................... $218,466,205 $ 170,792,960 $ 638,422,693 $ 529,062,491
------------ -------------- ------------- -------------
------------ -------------- ------------- -------------
TRANSACTIONS IN SHARES
Shares Purchased ............................ 11,694,843 34,699,740 18,779,188 22,308,516
Shares Purchased through Reinvestment ....... -- 30,491 5,066 31,665
------------ -------------- ------------- -------------
Total Purchased ............................. 11,694,843 34,730,231 18,784,254 22,340,181
Shares Redeemed ............................. (11,696,357) (34,939,290) (15,913,679) (19,348,123)
------------ -------------- ------------- -------------
Net Shares Purchased (Redeemed) ............. (1,514) (209,059) 2,870,575 2,992,058
------------ -------------- ------------- -------------
------------ -------------- ------------- -------------
ARKTOS MASTER PORTFOLIO JUNO MASTER PORTFOLIO
--------------------------- ---------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003+ 2003 2003+ 2003
------------- ------------ ------------ ------------
FROM OPERATIONS
Net Investment Income (Loss) ................ $ 115,037 $ 770,871 $ (8,800,888) $ (2,076,712)
Net Realized Gain (Loss) on Investments ..... (55,729,465) 19,846,429 (12,112,529) (9,237,761)
Net Change in Unrealized Appreciation
(Depreciation) on Investments ............. 9,585,720 (10,466,706) 14,530,403 615,465
------------- ------------ ------------ ------------
Net Increase (Decrease) in Net
Assets from Operations .................... (46,028,708) 10,150,594 (6,383,014) (10,699,008)
------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income ....................... -- (28,000,000) -- --
------------- ------------ ------------ ------------
SHARE TRANSACTIONS
Net Proceeds from Shares Purchased .......... 372,610,692 527,229,704 944,950,419 853,252,982
Net Value of Shares Purchased through
Dividend Reinvestment ..................... -- -- -- --
Net Cost of Shares Redeemed ................. (227,998,646) (476,161,977) (454,155,405) (685,690,416)
------------- ------------ ------------ ------------
NET INCREASE IN NET ASSETS
FROM SHARE TRANSACTIONS ..................... 144,612,046 51,067,727 490,795,014 167,562,566
------------- ------------ ------------ ------------
Net Increase in Net Assets .................. 98,583,338 33,218,321 484,412,000 156,863,558
NET ASSETS--BEGINNING OF PERIOD ............... 149,146,848 115,928,527 189,968,334 33,104,776
------------- ------------ ------------ ------------
NET ASSETS--END OF PERIOD ..................... $ 247,730,186 $149,146,848 $674,380,334 $189,968,334
------------- ------------ ------------ ------------
------------- ------------ ------------ ------------
TRANSACTIONS IN SHARES
Shares Purchased ............................ 5,150,905 5,251,475 25,608,328 22,026,488
Shares Purchased through Reinvestment ....... -- -- -- --
------------- ------------ ------------ ------------
Total Purchased ............................. 5,150,905 5,251,475 25,608,328 22,026,488
Shares Redeemed ............................. (3,176,222) (4,931,561) (12,219,901) (17,656,209)
------------- ------------ ------------ ------------
Net Shares Purchased ....................... 1,974,683 319,914 13,388,427 4,370,279
------------- ------------ ------------ ------------
------------- ------------ ------------ ------------
<FN>
+ UNAUDITED.
</FN>
See Notes to Financial Statements.
112 & 113 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO URSA MASTER PORTFOLIO
------------------------------------ --------------------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+ 2003 2002* 2003+ 2003 2002 2001*
------------- --------- --------- ------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $27.42 $45.36 $50.00 $81.01 $64.57 $65.19 $49.71
--------- --------- --------- --------- --------- --------- ---------
Net Investment Income ................... .13 .31 .34 .04 .46 1.22 2.80
Net Realized and Unrealized Gains
(Losses) on Securities ................ 7.53 (17.94) (4.62) (13.10) 16.44 (.35) 15.50
--------- --------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. 7.66 (17.63) (4.28) (13.06) 16.90 .87 18.30
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................. -- (.31) (.36) (.04) (.46) (1.49) (2.82)
--------- --------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ....................... 7.66 (17.94) (4.64) (13.10) 16.44 (.62) 15.48
--------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $35.08 $27.42 $45.36 $67.91 $81.01 $64.57 $65.19
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ................. 27.94% (38.94)% (8.54)% (16.12)% 26.21% 1.37% 38.06%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 0.78%** 0.79% 0.86%** 0.93%** 0.94% 0.94% 0.95%**
Net Expenses ............................ 0.78%** 0.79% 0.86%** 0.93%** 0.94% 0.94% 0.95%**
Net Investment Income ................... 0.78%** 0.91% 0.69%** 0.12%** 0.52% 1.90% 5.11%**
SUPPLEMENTAL DATA:
Portfolio Turnover Rate*** .............. 198% 603% 401% -- -- -- --
Net Assets, End of
period (000's omitted) ................ $218,466 $170,793 $291,992 $638,423 $529,062 $228,485 $225,040
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2001--NOVA MASTER PORTFOLIO;
APRIL 1, 2000--URSA MASTER PORTFOLIO.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE URSA MASTER
PORTFOLIO TYPICALLY HOLDS MOST OF ITS INVESTMENTS IN OPTIONS AND FUTURES
CONTRACTS WHICH ARE DEEMED SHORT-TERM SECURITIES.
+ UNAUDITED.
</FN>
See Notes to Financial Statements.
114 & 115 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
ARKTOS MASTER
ARKTOS MASTER PORTFOLIO PORTFOLIO
------------------------------------ ---------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $88.73 $85.18 $96.47 $53.67
--------- --------- --------- ---------
Net Investment Income (Loss) ............ (1.70) 6.71 1.37 3.70
Net Realized and Unrealized Gains
(Losses) on Securities ................ (19.26) 16.02 (8.93) 42.92
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. (20.96) 22.73 (7.56) 46.62
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................... -- (19.18) (3.73) (3.82)
--------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ....................... (20.96) 3.55 (11.29) 42.80
--------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ......................... $67.77 $88.73 $85.18 $96.47
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN ................. (23.62)% 20.95% (8.03)% 91.61%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 0.93%** 0.94% 0.94% 0.96%**
Net Expenses ............................ 0.93%** 0.94% 0.94% 0.95%**
Net Investment Income ................... 0.15%** 0.51% 1.63% 6.58%**
SUPPLEMENTAL DATA:
Portfolio Turnover Rate*** .............. -- -- -- 1,788%
Net Assets, End of
period (000's omitted) ................ $247,730 $149,147 $115,929 $78,919
JUNO MASTER PORTFOLIO
----------------------------------------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+ 2003 2002 2001*
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--
BEGINNING OF PERIOD ................... $37.35 $46.25 $45.39 $49.91
------------- --------- --------- ---------
Net Investment Income (Loss) ............ (.48) (.41) .69 2.72
Net Realized and Unrealized Gains
(Losses) on Securities ................ (.37) (8.49) 1.14 (4.45)
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. (.85) (8.90) 1.83 (1.73)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income ................... -- -- (.97) (2.79)
------------- --------- --------- ---------
Net Increase (Decrease) in
Net Asset Value ....................... (.85) (8.90) .86 (4.52)
------------- --------- --------- ---------
NET ASSET VALUE--
END OF PERIOD ......................... $36.50 $37.35 $46.25 $45.39
------------- --------- --------- ---------
------------- --------- --------- ---------
TOTAL INVESTMENT RETURN ................. (2.28)% (19.24)% 4.12% (3.67)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 0.93%** 0.94% 0.93% 0.94%**
Net Expenses ............................ 0.93%** 0.94% 0.93% 0.94%**
Net Investment Income (Loss) ............ (3.86)%** (2.72)% 1.61% 5.04%**
SUPPLEMENTAL DATA:
Portfolio Turnover Rate*** .............. 160% -- -- --
Net Assets, End of
period (000's omitted) ................ $674,380 $189,968 $33,105 $12,417
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 2000--ARKTOS MASTER PORTFOLIO
AND JUNO MASTER PORTFOLIO.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE ARKTOS MASTER
PORTFOLIO TYPICALLY HOLDS MOST OF ITS INVESTMENTS IN OPTIONS AND FUTURES
CONTRACTS WHICH ARE DEEMED SHORT-TERM SECURITIES.
+ UNAUDITED.
</FN>
See Notes to Financial Statements.
116
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") are registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as
a non-diversified, open-ended investment company, and are authorized to issue an
unlimited number of shares. The Trust offers five separate classes of shares,
Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares, and
Institutional Class Shares. Sales of shares of each Class are made without a
sales charge at the net asset value per share. C Class Shares have a 1%
Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12
months of purchase. At September 30, 2003, the Trust consisted of thirty-four
separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen
Sector Funds, and two Strategic Funds. This report covers the fourteen Benchmark
Funds and the Money Market Fund (the "Funds"), while the Sector Funds and the
Strategic Funds are contained in separate reports.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Exchange or American Stock
Exchange) are valued at the last quoted sales price as of close of business on
the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the valuation
date. Equity securities on the Nasdaq market system are valued at the Nasdaq
Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation
date. Listed options held by the Trust are valued at their last bid price.
Over-the-counter options held by the Trust are valued using the average bid
price obtained from one or more security dealers. The value of futures contracts
purchased and sold by the Trust is accounted for using the unrealized gain or
loss on the contracts that is determined by marking the contracts to their
current realized settlement prices. Financial futures contracts are valued at
the last quoted sales price as of 4:00 p.m. on the valuation date. Short-term
securities, if any, are valued at amortized cost, which approximates market
value. Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under
direction of the Board of Trustees or by the Advisor using methods established
or ratified by the Board of Trustees. The shares of the Master Portfolios held
by the Feeder Funds are valued at their respective daily Net Asset Value.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. Dividend income is recorded on the
ex-dividend date, net of applicable taxes withheld by foreign countries.
Interest income, including amortization of premiums and accretion of discount,
is accrued on a daily basis.
C. Net investment income is computed and dividends are declared daily in the
U.S. Government Bond Fund and the U.S. Government Money Market Fund. Income
dividends in these funds are paid monthly. Dividends are reinvested in
additional shares unless shareholders request payment in cash. Distributions of
net investment income in the remaining Benchmark Funds and distributions of net
realized capital gains in all funds are
SEMI-ANNUAL REPORT 117
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
recorded on the ex-dividend date. Distributions from net investment income and
net realized capital gains are determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States. These differences are primarily due to differing treatments
for items such as deferral of wash sales and post-October losses and regulated
futures contracts and options.
D. When a Fund engages in a short sale, an amount equal to the proceeds is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked to market to reflect the market value of the short sale.
The Fund maintains a segregated account of securities as collateral for short
sales. The Fund is exposed to market risk based on the amount, if any, that the
market value of the stock exceeds the market value of the securities in the
segregated account.
E. Upon the purchase of an option by a Fund, the premium paid is recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, the Fund will realize a loss in the amount of the cost of the
option. When a fund enters into a closing sale transaction, the Fund will
realize a gain or loss depending on whether the proceeds from the closing sale
transaction are greater or less than the cost of the option. When a Fund
exercises a put option, it will realize a gain or loss from the sale of the
underlying security and the proceeds from such sale will be decreased by the
premium originally paid. When a Fund exercises a call option, the cost of the
security that the Fund purchases upon exercise will be increased by the premium
originally paid. When a Fund writes (sells) an option, an amount equal to the
premium received is entered in the Trust's accounting records as an asset and
equivalent liability. The amount of the liability is subsequently marked to
market to reflect the current value of the option written. When an option
expires, or if the Fund enters into a closing purchase transaction, the Fund
realizes a gain (or loss if the cost of a closing purchase transaction exceeds
the premium received when the option was sold).
F. The Fund may purchase or sell stock and bond index futures contracts and
options on such futures contracts. Futures contracts are contracts for delayed
delivery of securities at a specified future delivery date and at a specific
price. Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to receive
from or pay to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
G. The Funds may enter into equity index swap agreements, which are
over-the-counter contracts in which one party agrees to make periodic payments
based on the change in market value of a specified equity security, basket of
equity securities, or equity index in return for periodic payments based on a
fixed or variable interest rate or the change in
118
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
market value of a different equity security, basket of equity securities, or
equity index. Swap agreements are used to obtain exposure to an equity or market
without owning or taking physical custody of securities.
H. Investment securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the date of valuation.
Purchases and sales of investment securities and income and expense items
denominated in foreign currencies are translated into U.S. dollar amounts on the
respective dates of such transactions. The Trust does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain and loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies and currency gains or losses realized between the trade and
settlement dates on investment transactions. Net unrealized exchange gains and
losses arise from changes in the fair values of assets and liabilities other
than investments in securities at the fiscal period end, resulting from changes
in exchange rates.
I. The Trust may enter into forward currency contracts primarily to hedge
against foreign currency exchange rate risks on its non-U.S. dollar denominated
investment securities. When entering into a forward currency contract, the fund
agrees to receive or deliver a fixed quantity of foreign currency for an
agreed-upon price on an agreed future date. These contracts are valued daily and
the corresponding unrealized gain or loss on the contracts, as measured by the
difference between the forward foreign exchange rates at the dates of entry into
the contracts and the forward rates at the reporting date, is included in the
statement of assets and liabilities. Realized and unrealized gains and losses
are included in the Statement of Operations.
J. Segregated Cash with Broker is held as collateral for investments in
derivative instruments such as futures contracts and equity index swap
agreements.
K. Certain U.S. Government and Agency Obligations are traded on a discount
basis; the interest rates shown on the Schedules of Investments reflect the
discount rates paid at the time of purchase by the fund. Other securities bear
interest at the rates shown, payable at fixed dates through maturity.
L. Interest and dividend income, most expenses, all realized gains and losses,
and all unrealized gains and losses are allocated to the classes based upon the
value of the outstanding shares in each Class. Certain costs, such as
distribution fees relating to Advisor Class Shares and H Class Shares and
service and distribution fees related to C Class Shares, are charged directly to
specific classes. In addition, certain expenses have been allocated to the
individual Funds in the Trust on a pro rata basis based upon the respective
aggregate net assets value of each Fund included in the Trust.
M. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates
SEMI-ANNUAL REPORT 119
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
2. FINANCIAL INSTRUMENTS
As part of its investment strategy, the Trust may utilize a variety of
derivative instruments, including options, futures, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
The risk associated with purchasing options is limited to the premium originally
paid. Options written by a fund involve, to varying degrees, risk of loss in
excess of the option value reflected in the Statement of Assets and Liabilities.
The risk in writing a covered call option is that a fund may forego the
opportunity for profit if the market price of the underlying security increases
and the option is exercised. The risk in writing a covered put option is that a
fund may incur a loss if the market price of the underlying security decreases
and the option is exercised. In addition, there is the risk that a fund may not
be able to enter into a closing transaction because of an illiquid secondary
market or, for over-the-counter options, because of the counterparty's inability
to perform. The Trust has established strict counterparty credit guidelines and
enters into transactions only with financial institutions of investment grade or
better.
There are several risks in connection with the use of futures contracts. Futures
contracts involve, to varying degrees, risk of loss in excess of amounts
reflected in the financial statements. Risks may be caused by an imperfect
correlation between movements in the price of the instruments and the price of
the underlying securities. In addition, there is the risk that a fund may not be
able to enter into a closing transaction because of an illiquid secondary
market.
The use of equity swaps involves risks that are different from those associated
with ordinary portfolio securities transactions. Swap agreements may be
considered to be illiquid. Although a fund will not enter into any swap
agreement unless the Advisor believes that the other party to the transaction is
creditworthy, a fund does bear the risk of loss of the amount expected to be
received under a swap agreement in the event of the default or bankruptcy of the
agreement counterparty. The Trust has established strict counterparty credit
guidelines and enters into transactions only with financial institutions of
investment grade or better.
In conjunction with the use of options, futures, options on futures and swap
agreements, as well as short sales of securities, the Funds are required to
maintain collateral in various forms. The Funds use, where appropriate,
depending on the financial instrument utilized and the broker involved, margin
deposits at the broker, cash segregated at the custodian bank, or the repurchase
agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, and swap agreements include 1) adverse changes in the value of such
instruments; 2) imperfect
120
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
correlation between the price of the instruments and movements in the price of
the underlying securities, indices, or futures contracts; 3) the possible
absence of a liquid secondary market for any particular instrument at any time;
and 4) the potential of counterparty default.
3. MASTER-FEEDER ARRANGEMENT
Currently, the Nova Fund, the Ursa Fund, the Arktos Fund, and the Juno Fund are
operating under a "master-feeder arrangement." Under a master-feeder
arrangement, a Fund invests substantially all of its assets in the Master
Portfolio, a separate open-end investment company that has the same investment
objectives as the Fund, e.g., the Nova Fund would act as a "feeder fund,"
holding shares of its Master Portfolio as its only investment. As a result, the
Fund has an indirect interest in all of the securities owned by the Master
Portfolio. Because of this indirect interest, the Fund's investment returns
should be the same as those of its Master Portfolio, adjusted for Fund expenses.
The financial statements of the Master Portfolios, including the Schedule of
Investments, are included in this report and should be read with the Funds'
financial statements. The percentage of Nova Master Portfolio, Ursa Master
Portfolio, Arktos Master Portfolio, and Juno Master Portfolio owned by the Nova
Fund, Ursa Fund, Arktos Fund, and Juno Fund, respectively, at September 30,
2003, was 100 percent. The Funds record their investments in the Master
Portfolio at fair value. Valuation of securities held by the Master Portfolio is
discussed in Note 1, Significant Accounting Policies.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays Rydex Global
Advisors (the "Advisor"), an affiliated entity, investment advisory fees
calculated at an annualized rate of 0.50% of the average daily net assets of the
U.S. Government Bond Fund and the U.S. Government Money Market Fund; 0.75% of
the average daily net assets of the OTC Fund and the Nova Master Portfolio; and
0.90% of the average daily net assets of the Medius Fund, the Mekros Fund, the
Large-Cap Europe Fund, the Large-Cap Japan Fund, the Ursa Master Portfolio, the
Arktos Master Portfolio, and the Juno Master Portfolio. For the period ending
September 30, 2003, the Advisor voluntarily reimbursed $24,197 of miscellaneous
expenses in the Institutional Class of the U.S. Government Money Market Fund.
Certain officers and trustees of the Trust are also officers and directors of
Rydex Global Advisors.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent services to the Trust for fees calculated at an annualized rate
of 0.20% of the average daily net assets of the U.S. Government Bond Fund and
the U.S. Government Money Market Fund; and 0.25% of the average daily net assets
of the Nova Fund, the Ursa Fund, the OTC Fund, the Arktos Fund, the Medius Fund,
the Mekros Fund, the Juno Fund, the Large-Cap Europe Fund, and the Large-Cap
Japan Fund. For the period ended September 30, 2003,
SEMI-ANNUAL REPORT 121
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
the Sevicer voluntarily waived transfer agent service fees in the amount of
$60,075 in the Institutional Class of the U.S. Government Money Market.
The Servicer also provides accounting services to the Trust calculated at an
annualized rate 0.10% on the first $250 million of the average daily net assets,
0.075% on the next $250 million of the average daily net assets, 0.05% on the
next $250 million of the average daily net assets, and 0.03% on the average
daily net assets over $750 million of each of the benchmark funds. For the
period ended September 30, 2003, the Servicer voluntarily waived accounting fees
in the amount of $15,151 in the Institutional Class of the U.S. Government Money
Market Fund.
Certain officers and trustees of the Trust are also officers and directors of
Rydex Fund Services, Inc.
The Trust has adopted a Distribution and Shareholder Services Plan applicable to
Advisor Class Shares and a Distribution Plan applicable to H Class shares for
which Rydex Distributors, Inc. (the "Distributor"), an affiliated entity, and
other firms that provide distribution and/or shareholder services ("Service
Providers") may receive compensation. If a Service Provider provides
distribution services, the Trust will pay distribution fees to the Distributor
at an annual rate not to exceed 0.25% of average daily net assets, pursuant to
Rule 12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service
Provider out of its fees. The Distributor may, at its discretion, retain a
portion of such payments to compensate itself for distribution services. For the
period ended September 30, 2003, the Distributor voluntarily waived $329,005 of
12b-1 expenses in the Advisor Class of the U.S. Government Money Market Fund.
With regard to Advisor Class Shares only, if a Service Provider provides
shareholders services, the Distributor will receive shareholder servicing fees
from the Trust at an annual rate not to exceed 0.25% of average daily net
assets. The Distributor, in turn, will pay the Service Provider out of its fees.
The Trust has adopted a separate Distribution and Shareholder Services Plan (the
"C Class Plan") applicable to its C Class Shares that allows the Funds to pay
annual distribution and service fees of 1.00% of the Funds' C Class Shares
average daily net assets. The annual 0.25% service fee compensates your
financial advisor for providing on-going services to you. The Distributor
retains the service and distribution fees on accounts with no authorized dealer
of record. The annual 0.75% distribution fee reimburses the Distributor for
paying your financial advisor an on-going sales commission. The Distributor
advances the first year's service and distribution fees. For the period ended
September 30, 2003, the Distributor waived $701,602 of C Class Plan expenses in
the C Class of the U.S. Government Money Market Fund.
Certain officers and trustees of the Trust are also officers and directors of
Rydex Distributors, Inc.
122
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
5. FEDERAL INCOME TAX INFORMATION
The Trust intends to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute substantially
all net investment income to its shareholders. Therefore, no Federal income tax
provision is required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for futures and options transactions, 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, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
the utilization of earnings and profits distributed to shareholders on
redemption of shares as part of the dividends paid deduction for income tax
purposes, net operating losses not utilized during the current year, and
differences in the treatment of certain notional principal contracts (e.g.
financial futures contracts). These reclassifications have no effect on net
assets or net asset values per share. Any taxable gain remaining at fiscal year
end is distributed in the following year.
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At September 30, 2003, 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 NET
TAX UNREALIZED UNREALIZED UNREALIZED
FUND COST GAIN LOSS GAIN (LOSS)
- ---- -------------- ------------ -------------- -------------
Nova Fund ................ $ 179,184,654 $ 39,281,551 $ -- $ 39,281,551
Ursa Fund ................ 741,616,477 -- (103,193,784) (103,193,784)
OTC Fund ................. 502,850,530 348,831,861 (3,267,161) 345,564,700
Arktos Fund .............. 297,685,353 -- (49,955,167) (49,955,167)
Medius Fund .............. 28,416,727 3,604,901 (47,821) 3,557,080
Mekros Fund .............. 105,530,337 4,528,595 (2,466,960) 2,061,635
U.S. Government
Bond Fund .............. 73,818,053 5,020,628 -- 5,020,628
Juno Fund ................ 684,422,596 -- (10,042,262) (10,042,262)
Large-Cap Europe Fund .... 6,197,619 -- -- --
Large-Cap Japan Fund ..... 65,632,341 -- -- --
U.S. Government
Money Market Fund ...... 1,652,073,327 -- -- --
Nova Master Portfolio .... 185,099,315 26,079,230 (922,022) 25,157,208
Ursa Master Portfolio .... 597,713,551 1,018,155 (78,375) 939,780
Arktos Master Portfolio .. 212,806,681 -- (5,670) (5,670)
Juno Master Portfolio .... 1,247,897,272 -- (14,538,171) (14,538,171)
SEMI-ANNUAL REPORT 123
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. REPURCHASE AGREEMENTS
The Trust transfers univested cash balances into a single joint account, along
with uninvested cash of the Rydex Dynamic Funds, a separate Trust, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by obligations of the U.S. Treasury or U.S. Government Agencies.
The collateral is in the possession of the Trusts' custodians and is evaluated
daily to ensure that its market value exceeds the delivery value of the
repurchase agreements at maturity.
The repurchase agreements that were executed by the joint account and
outstanding as of September 30, 2003, are as follows:
TERMS OF FACE MARKET MATURITY
COUNTERPARTY AGREEMENT VALUE VALUE VALUE
- ------------ ----------------- ------------ ------------ ------------
Salomon Smith Barney,
Inc. ....................... 0.90% due 10/1/03 $240,000,000 $240,000,000 $240,005,918
U.S. Bank NA ................. 0.96% due 10/1/03 170,000,000 170,000,000 170,004,471
Paine Webber, Inc. ........... 0.93% due 10/1/03 170,000,000 170,000,000 170,004,332
Morgan Stanley, Inc. ......... 0.91% due 10/1/03 170,000,000 170,000,000 170,004,238
Lehman Brothers, Inc. ........ 0.94% due 10/1/03 12,101,668 12,101,668 12,101,980
------------ ------------
$762,101,668 $762,120,939
------------ ------------
------------ ------------
As of September 30, 2003, the collateral for the repurchase agreements in the
joint account was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- --------------- -------------- ------------ --------------
U.S. Treasury Bonds ................. 3.875%-5.375% $268,291,421 $312,444,509
U.S. Treasury Notes ................. 0.000%-7.000% 257,405,610 293,257,361
Ginnie Mae .......................... 4.500%-5.000% 174,032,279 173,848,577
------------
$779,550,447
------------
------------
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 credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
124
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
7. SECURITIES TRANSACTIONS
During the period ended September 30, 2003, purchases and sales of investment
securities, excluding short-term and temporary cash investments, were:
NOVA URSA ARKTOS
MASTER MASTER OTC MASTER
PORTFOLIO PORTFOLIO FUND PORTFOLIO
------------ ------------ ------------ ---------
Purchases .... $332,118,460 $ -- $598,630,108 $ --
Sales ........ $316,816,335 $ -- $585,468,963 $ --
U.S. JUNO
MEDIUS MEKROS GOVERNMENT MASTER
FUND FUND BOND FUND PORTFOLIO
------------ ------------ ------------ ---------
Purchases .... $226,721,862 $335,545,805 $358,503,898 $1,060,219,698
Sales ........ $218,424,518 $298,684,306 $352,360,464 $ 660,159,547
U.S.
LARGE-CAP LARGE-CAP GOVERNMENT
EUROPE JAPAN MONEY
FUND FUND MARKET FUND
------------ ------------ ------------
Purchases .... $ -- $ -- $ --
Sales ........ $ -- $ -- $ --
8. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of shares.
Transactions in shares for the period ended September 30, 2003 were:
INVESTOR CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
----------- ------------ ------------ -----------
Shares Purchased ........... 33,206,954 150,650,438 106,849,501 21,282,414
Purchased through Dividend
Reinvestment ............. -- -- -- --
----------- ------------ ------------ -----------
Total Purchased ............ 33,206,954 150,650,438 106,849,501 21,282,414
Shares Redeemed ............ (33,844,581) (136,859,863) (109,342,678) (17,255,941)
----------- ------------ ------------ -----------
Net Shares Purchased
(Redeemed) ............... (637,627) 13,790,575 (2,493,177) 4,026,473
----------- ------------ ------------ -----------
----------- ------------ ------------ -----------
U.S. U.S.
GOVERNMENT GOVERNMENT
BOND JUNO MONEY
FUND FUND MARKET FUND
----------- ----------- ---------------
Shares Purchased ............ 48,649,282 67,032,448 10,278,026,002
Purchased through Dividend
Reinvestment .............. 72,854 -- 1,354,494
----------- ----------- ---------------
Total Purchased ............. 48,722,136 67,032,448 10,279,380,496
Shares Redeemed ............. (48,175,199) (52,805,738) (10,290,039,558)
----------- ----------- ---------------
Net Shares Purchased
(Redeemed) ................ 546,937 14,226,710 (10,659,062)
----------- ----------- ---------------
----------- ----------- ---------------
SEMI-ANNUAL REPORT 125
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 7,747,978 16,113,879 8,673,873 157,737
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ ------------ --------------- --------------
Total Purchased ................. 7,747,978 16,113,879 8,673,873 157,737
Shares Redeemed ................. (7,338,274) (14,415,573) (11,303,339) (73,659)
------------ ------------ --------------- --------------
Net Shares Purchased
(Redeemed) .................... 409,704 1,698,306 (2,629,466) 84,078
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
U.S. U.S.
GOVERNMENT GOVERNMENT
BOND JUNO MONEY
FUND FUND MARKET FUND
------------ ------------ ---------------
Shares Purchased ................ 1,888,465 1,431,186 2,715,067,154
Purchased through Dividend
Reinvestment .................. 1,113 -- 7,033
------------ ------------ ---------------
Total Purchased ................. 1,889,578 1,431,186 2,715,074,187
Shares Redeemed ................. (592,464) (787,473) (2,637,942,518)
------------ ------------ ---------------
Net Shares Purchased ............ 1,297,114 643,713 77,131,669
------------ ------------ ---------------
------------ ------------ ---------------
H CLASS:
LARGE-CAP LARGE-CAP
MEDIUS MEKROS EUROPE JAPAN
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 17,078,522 58,798,418 13,254,385 12,316,624
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ ------------ --------------- --------------
Total Purchased ................. 17,078,522 58,798,418 13,254,385 12,316,624
Shares Redeemed ................. (16,873,062) (56,931,488) (13,327,130) (10,279,944)
------------ ------------ --------------- --------------
Net Shares Purchased
(Redeemed) .................... 205,460 1,866,930 (72,745) 2,036,680
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
C CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 5,448,725 14,306,602 9,787,104 1,752,436
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ ------------ --------------- --------------
Total Purchased ................. 5,448,725 14,306,602 9,787,104 1,752,436
Shares Redeemed ................. (5,178,105) (11,799,353) (9,597,833) (1,194,206)
------------ ------------ --------------- --------------
Net Shares Purchased ............ 270,620 2,507,249 189,271 558,230
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
126
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
U.S.
GOVERNMENT
MEDIUS MEKROS BOND JUNO
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 2,258,141 8,206,883 4,410,290 13,201,533
Purchased through Dividend
Reinvestment .................. -- -- 4,897 --
------------ ------------ --------------- --------------
Total Purchased ................. 2,258,141 8,206,883 4,415,187 13,201,533
Shares Redeemed ................. (2,308,993) (7,904,272) (3,823,415) (4,264,525)
------------ ------------ --------------- --------------
Net Shares Purchased
(Redeemed) .................... (50,852) 302,611 591,772 8,937,008
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
U.S.
LARGE-CAP LARGE-CAP GOVERNMENT
EUROPE JAPAN MONEY
FUND FUND MARKET FUND
------------ ------------ ---------------
Shares Purchased ................ 1,073,254 329,263 1,742,520,374
Purchased through Dividend
Reinvestment .................. -- -- 4,352
------------ ------------ ---------------
Total Purchased ................. 1,073,254 329,263 1,742,524,726
Shares Redeemed ................. (1,195,027) (275,833) (1,728,870,659)
------------ ------------ ---------------
Net Shares Purchased
(Redeemed) .................... (121,773) 53,430 13,654,067
------------ ------------ ---------------
------------ ------------ ---------------
INSTITUTIONAL CLASS:
U.S.
GOVERNMENT
MONEY
MARKET FUND
------------
Shares Purchased --
Purchased through Dividend
Reinvestment .................. 28,440
------------
Total Purchased ................. 28,440
Shares Redeemed ................. (10,036,610)
------------
Net Shares Redeemed ............. (10,008,170)
------------
------------
SEMI-ANNUAL REPORT 127
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Transactions in shares for the year ended March 31, 2003 were:
INVESTOR CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 83,857,036 222,974,131 247,268,777 28,728,910
Purchased through Dividend
Reinvestment .................. -- 212,405 -- 111,034
------------ ------------ --------------- --------------
Total Purchased ................. 83,857,036 223,186,536 247,268,777 28,839,944
Shares Redeemed ................. (84,123,194) (207,588,037) (231,234,240) (28,492,265)
------------ ------------ --------------- --------------
Net Shares Purchased
(Redeemed) ...................... (266,158) 15,598,499 16,034,537 347,679
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
U.S. U.S.
GOVERNMENT GOVERNMENT
BOND JUNO MONEY
FUND FUND MARKET FUND
------------ ------------ ---------------
Shares Purchased ................ 162,319,402 137,819,143 24,111,170,364
Purchased through Dividend
Reinvestment .................. 188,040 7,556 8,020,358
------------ ------------ ---------------
Total Purchased ................. 162,507,442 137,826,699 24,119,190,722
Shares Redeemed ................. (159,368,511) (135,422,806) (23,879,948,615)
------------ ------------ ---------------
Net Shares Purchased ............ 3,138,931 2,403,893 239,242,107
------------ ------------ ---------------
------------ ------------ ---------------
ADVISOR CLASS:
U.S.
GOVERNMENT
NOVA URSA OTC MONEY
FUND FUND FUND MARKET FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 29,792,440 26,350,006 81,322,305 5,729,683,870
Purchased through Dividend
Reinvestment .................. -- 6,853 -- 1,040,724
------------ ------------ --------------- --------------
Total Purchased ................. 29,792,440 26,356,859 81,322,305 5,730,724,594
Shares Redeemed ................. (30,368,140) (23,921,007) (77,014,920) (5,914,567,833)
------------ ------------ --------------- --------------
Net Shares Purchased
(Redeemed) .................... (575,700) 2,435,852 4,307,385 (183,843,239)
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
H CLASS:
MEDIUS MEKROS LARGE-CAP LARGE-CAP
FUND FUND EUROPE FUND JAPAN FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 93,819,644 115,322,173 37,130,484 13,245,498
Purchased through Dividend
Reinvestment .................. 9,265 11,733 -- --
------------ ------------ --------------- --------------
Total Purchased ................. 93,828,909 115,333,906 37,130,484 13,245,498
Shares Redeemed ................. (97,371,579) (118,163,700) (37,288,995) (13,980,368)
------------ ------------ --------------- --------------
Net Shares Redeemed ............. (3,542,670) (2,829,794) (158,511) (734,870)
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
128
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 11,268,899 16,643,783 11,462,178 2,077,755
Purchased through Dividend
Reinvestment .................. -- 5,170 -- 1,928
------------ ------------ --------------- --------------
Total Purchased ................. 11,268,899 16,648,953 11,462,178 2,079,683
Shares Redeemed ................. (10,847,905) (15,955,243) (10,601,971) (2,069,791)
------------ ------------ --------------- --------------
Net Shares Purchased ............ 420,994 693,710 860,207 9,892
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
U.S.
GOVERNMENT
MEDIUS MEKROS BOND JUNO
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ................ 6,276,724 15,463,918 2,371,414 9,481,230
Purchased through Dividend
Reinvestment .................. 1,123 663 3,299 994
------------ ------------ --------------- --------------
Total Purchased ................. 6,277,847 15,464,581 2,374,713 9,482,224
Shares Redeemed ................. (5,990,604) (15,320,356) (2,200,459) (6,662,145)
------------ ------------ --------------- --------------
Net Shares Purchased ............ 287,243 144,225 174,254 2,820,079
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
U.S.
GOVERNMENT
LARGE-CAP LARGE-CAP MONEY
EUROPE FUND JAPAN FUND MARKET FUND
------------ ------------ ---------------
Shares Purchased ................ 2,342,639 217,941 2,555,257,130
Purchased through Dividend
Reinvestment .................. -- -- 80,795
------------ ------------ ---------------
Total Purchased ................. 2,342,639 217,941 2,555,337,925
Shares Redeemed ................. (2,149,285) (217,899) (2,401,512,601)
------------ ------------ ---------------
Net Shares Purchased ............ 193,354 42 153,825,324
------------ ------------ ---------------
------------ ------------ ---------------
INSTITUTIONAL CLASS:
U.S.
GOVERNMENT
MONEY
MARKET FUND
------------
Shares Purchased ................ 70,000,000
Purchased through Dividend
Reinvestment .................. 63,341
------------
Total Purchased ................. 70,063,341
Shares Redeemed ................. (10,055,171)
------------
Net Shares Purchased ............ 60,008,170
------------
------------
SEMI-ANNUAL REPORT 129
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Transactions in dollars for the period ended September 30, 2003 were:
INVESTOR CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ -------------- ------------- ------------
Shares Purchased ................ $632,853,687 $1,708,614,282 $ 876,545,709 $655,248,358
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ -------------- ------------- ------------
Total Purchased ................. 632,853,687 1,708,614,282 876,545,709 655,248,358
Shares Redeemed ................. (641,521,998) (1,533,754,887) (893,895,823) (529,211,905)
------------ -------------- ------------- ------------
Net Change ...................... $ (8,668,311) $ 174,859,395 $ (17,350,114) $126,036,453
------------ -------------- ------------- ------------
------------ -------------- ------------- ------------
U.S. U.S.
GOVERNMENT GOVERNMENT
BOND JUNO MONEY
FUND FUND MARKET FUND
------------ -------------- ---------------
Shares Purchased ................ $532,159,218 $1,417,451,213 $10,278,026,002
Purchased through Dividend
Reinvestment .................. 784,425 -- 1,354,494
------------ -------------- ---------------
Total Purchased ................. 532,943,643 1,417,451,213 10,279,380,496
Shares Redeemed ................. (528,647,315) (1,121,567,530) (10,290,039,558)
------------ -------------- ---------------
Net Change ...................... $ 4,296,328 $ 295,883,683 $ (10,659,062)
------------ -------------- ---------------
------------ -------------- ---------------
ADVISOR CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ ------------ ------------ ----------
Shares Purchased ................ $142,085,270 $179,049,850 $ 70,016,493 $4,492,588
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ ------------ ------------ ----------
Total Purchased ................. 142,085,270 179,049,850 70,016,493 4,492,588
Shares Redeemed ................. (134,634,104) (157,435,521) (88,487,950) (2,126,079)
------------ ------------ ------------ ----------
Net Change ...................... $ 7,451,166 $ 21,614,329 $(18,471,457) $2,366,509
------------ ------------ ------------ ----------
------------ ------------ ------------ ----------
U.S. U.S.
GOVERNMENT GOVERNMENT
BOND JUNO MONEY
FUND FUND MARKET FUND
----------- ------------ --------------
Shares Purchased ................ $19,583,204 $ 31,059,452 $2,715,067,154
Purchased through Dividend
Reinvestment .................. 11,863 -- 7,033
----------- ------------ --------------
Total Purchased ................. 19,595,067 31,059,452 2,715,074,187
Shares Redeemed ................. (6,064,773) (17,111,268) (2,637,942,518)
----------- ------------ --------------
Net Change ...................... $13,530,294 $ 13,948,184 $ 77,131,669
----------- ------------ --------------
----------- ------------ --------------
130
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
H CLASS:
MEDIUS MEKROS LARGE-CAP LARGE-CAP
FUND FUND EUROPE FUND JAPAN FUND
------------ -------------- ------------- -------------
Shares Purchased ................ $354,179,319 $1,065,810,004 $ 163,253,001 $ 277,125,981
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ -------------- ------------- -------------
Total Purchased ................. 354,179,319 1,065,810,004 163,253,001 277,125,981
Shares Redeemed ................. (350,553,478) (1,035,870,786) (165,765,799) (217,243,364)
------------ -------------- ------------- -------------
Net Change ...................... $ 3,625,841 $ 29,939,218 $ (2,512,798) $ 59,882,617
------------ -------------- ------------- -------------
------------ -------------- ------------- -------------
C CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------ -------------- ------------- -------------
Shares Purchased ................ $ 99,882,987 $ 159,006,663 $ 78,675,471 $ 51,333,392
Purchased through Dividend
Reinvestment .................. -- -- -- --
------------ -------------- ------------- -------------
Total Purchased ................. 99,882,987 159,006,663 78,675,471 51,333,392
Shares Redeemed ................. (93,944,979) (130,597,370) (77,136,416) (34,670,333)
------------ -------------- ------------- -------------
Net Change ...................... $ 5,938,008 $ 28,409,293 $ 1,539,055 $ 16,663,059
------------ -------------- ------------- -------------
------------ -------------- ------------- -------------
U.S.
GOVERNMENT
MEDIUS MEKROS BOND JUNO
FUND FUND FUND FUND
------------ -------------- ------------- -------------
Shares Purchased ................ $ 46,299,939 $ 147,450,950 $ 47,186,118 $ 271,460,767
Purchased through Dividend
Reinvestment .................. -- -- 51,996 --
------------ -------------- ------------- -------------
Total Purchased ................. 46,299,939 147,450,950 47,238,114 271,460,767
Shares Redeemed ................. (47,036,925) (142,479,503) (40,777,329) (88,812,617)
------------ -------------- ------------- -------------
Net Change ...................... $ (736,986) $ 4,971,447 $ 6,460,785 $ 182,648,150
------------ -------------- ------------- -------------
------------ -------------- ------------- -------------
U.S.
GOVERNMENT
LARGE-CAP LARGE-CAP MONEY
EUROPE FUND JAPAN FUND MARKET FUND
------------ -------------- --------------
Shares Purchased ................ $ 13,340,040 $ 8,662,800 $1,742,520,373
Purchased through Dividend
Reinvestment .................. -- -- 4,353
------------ -------------- --------------
Total Purchased ................. 13,340,040 8,662,800 1,742,524,726
Shares Redeemed ................. (14,486,152) (7,140,568) (1,728,870,660)
------------ -------------- --------------
Net Change ...................... $ (1,146,112) $ 1,522,232 $ 13,654,066
------------ -------------- --------------
------------ -------------- --------------
SEMI-ANNUAL REPORT 131
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS:
U.S.
GOVERNMENT
MONEY
MARKET FUND
------------
Shares Purchased ............... $ --
Purchased through Dividend
Reinvestment ................. 28,440
-----------
Total Purchased ................ 28,440
Shares Redeemed ................ (10,036,610)
-----------
Net Change ..................... $(10,008,170)
-----------
-----------
Transactions in dollars for the year ended March 31, 2003 were:
INVESTOR CLASS:
NOVA URSA OTC
FUND FUND FUND
-------------- -------------- --------------
Shares Purchased ............... $1,550,454,716 $2,830,116,550 $1,802,548,833
Purchased through Dividend
Reinvestment ................. -- 2,695,421 --
-------------- -------------- --------------
Total Purchased ................ 1,550,454,716 2,832,811,971 1,802,548,833
Shares Redeemed ................ (1,556,893,272) (2,638,186,951) (1,687,027,469)
-------------- -------------- --------------
Net Change ..................... $ (6,438,556) $ 194,625,020 $ 115,521,364
-------------- -------------- --------------
-------------- -------------- --------------
U.S.
GOVERNMENT
ARKTOS BOND JUNO
FUND FUND FUND
-------------- -------------- --------------
Shares Purchased ............... $1,170,064,405 $1,671,834,178 $1,251,087,583
Purchased through Dividend
Reinvestment ................. 4,404,716 1,941,577 56,144
-------------- -------------- --------------
Total Purchased ................ 1,174,469,121 1,673,775,755 1,251,143,727
Shares Redeemed ................ (1,146,919,802) (1,637,318,037) (1,144,688,438)
-------------- -------------- --------------
Net Change ..................... $ 27,549,319 $ 36,457,718 $ 106,455,289
-------------- -------------- --------------
-------------- -------------- --------------
U.S.
GOVERNMENT
MONEY
MARKET FUND
---------------
Shares Purchased ............... $24,111,170,705
Purchased through Dividend
Reinvestment ................. 8,020,358
---------------
Total Purchased ................ 24,119,191,063
Shares Redeemed ................ (23,879,948,617)
---------------
Net Change ..................... $ 239,242,446
---------------
---------------
132
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS:
U.S.
GOVERNMENT
NOVA URSA OTC MONEY
FUND FUND FUND MARKET FUND
-------------- -------------- ------------- --------------
Shares Purchased ............... $ 535,977,096 $ 330,276,923 $ 566,145,734 $5,729,683,870
Purchased through Dividend
Reinvestment ................. -- 84,699 -- 1,040,724
-------------- -------------- ------------- --------------
Total Purchased ................ 535,977,096 330,361,622 566,145,734 5,730,724,594
Shares Redeemed ................ (545,080,007) (297,274,153) (532,874,518) (5,914,567,833)
-------------- -------------- ------------- --------------
Net Change ..................... $ (9,102,911) $ 33,087,469 $ 33,271,216 $ (183,843,239)
-------------- -------------- ------------- --------------
-------------- -------------- ------------- --------------
H CLASS:
MEDIUS MEKROS LARGE-CAP LARGE-CAP
FUND FUND EUROPE FUND JAPAN FUND
-------------- -------------- ------------- --------------
Shares Purchased ............... $1,945,416,153 $1,940,304,439 $444,767,939 $ 323,446,400
Purchased through Dividend
Reinvestment ................. 163,432 170,244 -- --
-------------- -------------- ------------- --------------
Total Purchased ................ 1,945,579,585 1,940,474,683 444,767,939 323,446,400
Shares Redeemed ................ (2,022,196,977) (1,992,763,899) (441,951,114) (337,144,368)
-------------- -------------- ------------- --------------
Net Change ..................... $ (76,617,392) $ (52,289,216) $ 2,816,825 $ (13,697,968)
-------------- -------------- ------------- --------------
-------------- -------------- ------------- --------------
C CLASS:
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
-------------- -------------- ------------- --------------
Shares Purchased ............... $ 199,531,214 $ 207,245,885 $ 80,542,738 $ 82,697,464
Purchased through Dividend
Reinvestment ................. -- 64,474 -- 74,919
-------------- -------------- ------------- --------------
Total Purchased ................ 199,531,214 207,310,359 80,542,738 82,772,383
Shares Redeemed ................ (190,906,083) (197,104,992) (74,793,804) (81,654,290)
-------------- -------------- ------------- --------------
Net Change ..................... $ 8,625,131 $ 10,205,367 $ 5,748,934 $ 1,118,093
-------------- -------------- ------------- --------------
-------------- -------------- ------------- --------------
U.S.
GOVERNMENT
MEDIUS MEKROS BOND JUNO
FUND FUND FUND FUND
------------ ------------ --------------- --------------
Shares Purchased ............... $118,906,006 $231,755,936 $ 25,084,987 $109,619,631
Purchased through Dividend
Reinvestment ................. 19,612 9,480 35,384 7,287
------------ ------------ --------------- --------------
Total Purchased ................ 118,925,618 231,765,416 25,120,371 109,626,918
Shares Redeemed ................ (112,097,599) (234,108,252) (23,220,202) (48,058,380)
------------ ------------ --------------- --------------
Net Change ..................... $ 6,828,019 $ (2,342,836) $ 1,900,169 $ 61,568,538
------------ ------------ --------------- --------------
------------ ------------ --------------- --------------
SEMI-ANNUAL REPORT 133
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
U.S.
LARGE-CAP LARGE-CAP GOVERNMENT
EUROPE JAPAN MONEY
FUND FUND MARKET FUND
----------- ----------- --------------
Shares Purchased ........... $26,738,406 $ 5,902,412 $2,555,257,130
Purchased through Dividend
Reinvestment ............. -- -- 80,795
----------- ----------- --------------
Total Purchased ............ 26,738,406 5,902,412 2,555,337,925
Shares Redeemed ............ (24,610,760) (5,745,360) (2,401,512,601)
----------- ----------- --------------
Net Change ................. $ 2,127,646 $ 157,052 $ 153,825,324
----------- ----------- --------------
----------- ----------- --------------
INSTITUTIONAL CLASS:
U.S.
GOVERNMENT
MONEY
MARKET FUND
------------
Shares Purchased ........... $ 70,000,000
Purchased through Dividend
Reinvestment ............. 63,341
------------
Total Purchased ............ 70,063,341
Shares Redeemed ............ (10,055,171)
------------
Net Change ................. $ 60,008,170
------------
------------
9. NET ASSETS
At September 30, 2003, net assets consisted of:
NOVA FUND URSA FUND OTC FUND ARKTOS FUND
------------ ------------ -------------- ------------
Paid-In Capital ...................... $316,441,195 $750,662,646 $1,598,716,347 $356,087,451
Undistributed Net
Investment Loss .................... (565,598) (3,202,593) (4,341,547) (378,049)
Accumulated Net Realized
Loss on Investments, Options,
Equity Index Swaps, and
Futures Contracts .................. (95,179,601) (103,725,956) (1,044,326,612) (101,118,907)
Net Unrealized Appreciation
(Depreciation) on Investments,
Options, Equity Index Swaps,
and Futures Contracts ............. (2,258,803) (5,377,917) 296,161,977 (6,842,560)
------------ ------------ -------------- ------------
Net Assets ........................... $218,437,193 $638,356,180 $ 846,210,165 $247,747,935
------------ ------------ -------------- ------------
------------ ------------ -------------- ------------
134
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
U.S.
GOVERNMENT
MEDIUS FUND MEKROS FUND BOND FUND JUNO FUND
----------- ------------ ----------- ------------
Paid-In Capital ....................... $36,708,326 $ 97,583,286 $86,303,497 $692,799,223
Undistributed Net
Investment Income (Loss) ............ (149,442) (714,239) 181,492 (1,716,602)
Accumulated Net Realized
Gain (Loss) on Investments,
Options, Equity Index Swaps, and
Futures Contracts ................... (8,714,918) 15,052,007 (12,451,577) (6,216,578)
Net Unrealized Appreciation
(Depreciation) on Investments,
Equity Index Swaps, Options
and Futures Contracts ............... 3,654,612 517,424 4,950,689 (10,558,395)
----------- ------------ ----------- ------------
Net Assets ............................ $31,498,578 $112,438,478 $78,984,101 $674,307,648
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
U.S.
LARGE-CAP LARGE-CAP GOVERNMENT
EUROPE JAPAN MONEY
FUND FUND MARKET FUND
------------ ----------- --------------
Paid-In Capital ....................... $2,966,834 $64,604,706 $1,738,526,870
Undistributed Net Investment
Income (Loss) ....................... (168,350) (61,315) --
Accumulated Net Realized Gain
(Loss) on Investments, Equity
Index Swaps, and Futures
Contracts ........................... 3,439,826 2,555,890 (464,513)
Net Unrealized Appreciation
(Depreciation) on Investments,
Equity Index Swaps and
Futures Contracts ................... (78,947) 1,407,567 --
------------ ----------- --------------
Net Assets ............................ $6,159,363 $68,506,848 $1,738,062,357
------------ ----------- --------------
------------ ----------- --------------
SEMI-ANNUAL REPORT 135
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ -------------- ------------ ------------
Paid-In Capital .......... $474,843,753 $1,124,820,647 $426,820,202 $696,175,111
Undistributed Net
Investment Income (Loss) 785,862 (13,401) 5,513,922 (8,800,888)
Accumulated Net Realized
Loss on Investments,
Equity Index Swaps, Options,
and Futures Contracts .. (276,471,444) (500,971,236) (188,916,921) (28,964,293)
Net Unrealized Appreciation
on Investments, Options,
Equity Index Swaps
and Futures Contracts .. 19,308,034 14,586,683 4,312,983 15,970,404
------------ -------------- ------------ ------------
Net Assets ............... $218,466,205 $ 638,422,693 $247,730,186 $674,380,334
------------ -------------- ------------ ------------
------------ -------------- ------------ ------------
10. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
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 102% 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, 2003, the pooled cash
collateral investments consisted of repurchase agreements (78.46%), commercial
paper (11.99%), fixed income notes (9.43%), and money market mutual funds
(0.12%). 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. The Trust holds the cash
collateral in a segregated account at its custodian bank. 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.
At September 30, 2003 the following funds participated in securities lending and
received cash collateral:
FUND CASH COLLATERAL VALUE OF SECURITIES LOANED
- ---- --------------- --------------------------
OTC Fund $350,230,686 $330,110,921
Medius Fund 5,309,643 5,089,862
Mekros Fund 6,823,343 6,339,610
U.S. Government Money Market Fund 160,000,000 159,712,000
Nova Master Portfolio 49,741,480 47,441,985
136
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
11. LARGE-CAP JAPAN FUND REVERSE STOCK SPLIT
Effective April 21, 2003, the Large-Cap Japan Fund, H Class shares and C Class
shares, underwent a 1-for-3 reverse split. The effect of this transaction was to
divide the number of outstanding shares by three, while multiplying the net
asset value per share by three.
There was no change in the aggregate market value of the outstanding shares as a
result of this transaction.
12. CHANGE IN INDEPENDENT AUDITORS
Effective August 25, 2003, the Trust has retained PricewaterhouseCoopers LLP to
serve as the Trust's independent auditors.
13. 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 site at
http://www.sec.gov.
SEMI-ANNUAL REPORT 137
- --------------------------------------------------------------------------------
This page intentionally left blank.
[LOGO OMITTED]
Rydex Investments
Essential for modern markets [TM]
9601 Blackwell Road
Suite 500
Rockville,MD 20850
800.820.0888
www.rydexfunds.com
THE RYDEX SERIES FUNDS
- --------------------------------------------------------------------------------
Sector Funds
Semi-Annual Report
September 30, 2003
Banking Fund
Basic Materials Fund
Biotechnology Fund
Consumer Products Fund
Electronics Fund
Energy Fund
Energy Services Fund
Financial Services Fund
Health Care Fund
Internet Fund
Leisure Fund
Precious Metals Fund
Retailing Fund
Technology Fund
Telecommunications Fund
Transportation Fund
Utilities Fund
[LOGO OMITTED]
Rydex Investments
Essential for modern markets[TM]
RFSSA-3-11/03
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.
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ........................................ 2
SCHEDULES OF INVESTMENTS .......................................... 3
STATEMENTS OF ASSETS AND LIABILITIES .............................. 36
STATEMENTS OF OPERATIONS .......................................... 40
STATEMENTS OF CHANGES IN NET ASSETS ............................... 44
FINANCIAL HIGHLIGHTS .............................................. 54
NOTES TO FINANCIAL STATEMENTS ..................................... 140
2
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The period April 1 through September 30, 2003 can be characterized by remarkable
resilience in the financial markets and cautious optimism on the economy. Having
started the period in a time of high geopolitical uncertainty and weak economic
activity, the markets returned double-digit gains across the board. Most notable
in the rally was the solid outperformance of the technology sector and
small-capitalization stocks. For the period, small-cap stocks, as measured by
the Russell 2000(R), outperformed the predominantly large-cap S&P 500(R) by an
incredible 16.17%, returning 34.62% and 18.45%, respectively. Similarly, the
tech-heavy Nasdaq 100(R) returned 27.98%, beating the S&P 500 by 9.53%.
The mutual fund industry was rocked by revelations of trading abuses by
corporate executives and fund managers, as well as disclosure of special deals
for top customers. The charges and allegations as presented by New York Attorney
General, Eliot Spitzer, represent a serious breach of fiduciary duty and are
almost certain to bring regulatory changes to the industry. The term
"market-timing" has, unfortunately, taken the connotation of illicit investor
behavior. However, we believe that funds designed to accommodate active trading
can be an important tool in a tactical asset allocation strategy provided
trading activity is monitored and the rules to protect current shareholders are
strictly enforced.
Investor optimism and positive news regarding cancer-fighting drugs helped spur
the biotechnology sector as Rydex Biotechnology Fund rose 36.36% for the period.
Technology, electronics and internet stocks all outpaced the broader market. Tax
credits and home mortgage refinancing increased consumer discretionary income
boosting the Rydex Retailing Fund by 28.25%.
In the strong, upward trending market of the last two quarters, Rydex inverse
funds performed as expected, generating corresponding losses to their respective
benchmarks. Rydex Ursa Fund was down 16.23%, corresponding to an 18.45% increase
in the S&P 500. Similarly, Rydex Arktos Fund fell 23.76% while the Nasdaq 100
increased 27.98%. (Ursa Fund and Arktos Fund are part of the Rydex Benchmark
Funds and are reported on separately.)
On the fixed-income side, uneven reports of a stronger economy, positive and
negative unemployment data and increasing bond issuance led to volatility in the
Treasury market throughout the period. On June 16, when the Long Bond yield hit
a low of 4.17%, more positive economic data and improving investor sentiment
initiated an upward trend in rates that topped out on August 15 at 5.45%.
Further uncertainty surrounding the labor market pushed yields lower. Despite
the fixed-income market's lack of direction, the Long Bond yielded 4.88% on
September 30, 2003, closely matching the 4.82% yield recorded on March 31, 2003.
The outlook for higher interest rates and the speculation of a "bond bubble" has
led to increased inflows to Rydex Juno Fund. Juno's assets reached $674.3
million at the end of the third quarter up from $189.9 million at March 31,
2003. This inverse bond fund is an option for investors to speculate on rising
interest rates or to protect fixed-income holdings in a rising interest rate
environment. (Juno Fund is part of the Rydex Benchmark Funds and is reported on
separately.)
Staging a surprising comeback were the stocks of European and Japanese
companies, which have been conspicuously under performing in recent years. Rydex
Large-Cap Europe Fund rose 29.76% reflecting improving fundamentals and a strong
Euro versus the U.S. dollar. Rydex Large-Cap Japan rose an astounding 43.10% for
the period reflecting improvements in Japanese domestic growth and growing
global investor confidence. (Large-Cap Europe Fund and Large-Cap Japan Fund are
part of the Rydex Benchmark Funds and are reported on separately.)
Times such as these can be challenging for investors. At Rydex Investments, we
acknowledge and appreciate the trust you have placed in our firm's quality and
integrity by investing with us.
Sincerely,
/S/ CARL G. VERBONCOEUR
Carl G. Verboncoeur
Chief Executive Officer
Rydex Investments
SEMI-ANNUAL REPORT 3
BANKING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 99.3%
Wells Fargo & Co. .... 8,516 $ 438,574
Bank of America Corp. 5,448 425,162
Wachovia Corp. ....... 9,216 379,607
Bank One Corp. ....... 8,966 346,536
Washington Mutual, Inc.+ 8,189 322,401
FleetBoston Financial
Corp. .............. 10,375 312,806
J.P. Morgan Chase & Co.+ 9,009 309,279
U.S. Bancorp+ ........ 10,225 245,298
National City Corp. .. 8,242 242,809
M&T Bank Corp. ....... 2,370 206,901
Regions Financial Corp. 5,640 193,170
Charter One Financial,
Inc. ............... 6,285 192,321
KeyCorp .............. 7,470 191,008
Union Planters Corp. . 5,818 184,082
Huntington Bancshares,
Inc. ............... 8,750 173,162
First Tennessee National
Corp. .............. 3,900 165,594
Bank of New York Co.,
Inc. ............... 5,680 165,345
PNC Financial Services
Group, Inc. ........ 3,460 164,627
Hibernia Corp.cClass A 7,600 153,976
Downey Financial Corp. 3,200 149,536
Silicon Valley
Bancshares* ........ 5,400 149,202
Webster Financial Corp. 3,600 143,568
Colonial BancGroup,
Inc.+ .............. 9,680 139,779
Provident Financial Group,
Inc. ............... 4,945 138,262
South Financial Group,
Inc. ............... 5,420 134,904
Fifth Third Bancorp .. 2,385 132,296
Whitney Holding Corp. 3,870 131,580
MAF Bancorp, Inc. .... 3,287 125,563
Staten Island Bancorp,
Inc. ............... 6,400 124,480
Dime Community
Bancshares ......... 5,000 115,000
Chittenden Corp. ..... 3,500 104,125
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Hudson City Bancorp,
Inc. ............... 3,280 $ 101,155
Seacoast Financial Services
Corp. .............. 4,400 91,124
Riggs National Corp. . 5,725 90,169
Park National Corp. .. 800 89,520
Valley National Bancorp 3,096 86,193
Fulton Financial Corp. 4,083 81,987
Commerce Bancorp,
Inc./NJ+ ........... 1,700 81,447
Commerce Bancshares,
Inc. ............... 1,855 81,156
Radian Group, Inc. ... 1,800 79,920
MGIC Investment Corp.+ 1,500 78,105
BB&T Corp. ........... 2,173 78,032
SunTrust Banks, Inc. . 1,241 74,919
Northern Trust Corp. . 1,700 72,148
United Bankshares, Inc. 2,388 71,521
GBC Bancorp/CA ....... 1,800 69,030
Citigroup, Inc. ...... 1,490 67,810
Susquehanna Bancshares,
Inc. ............... 2,540 65,278
Popular, Inc. ........ 1,620 64,476
Trustmark Corp. ...... 2,370 64,298
Banknorth Group, Inc. 2,244 63,326
Golden West Financial
Corp. .............. 700 62,657
Anchor BanCorp
Wisconsin, Inc. .... 2,600 61,048
BancorpSouth, Inc. ... 2,750 60,225
Compass Bancshares, Inc. 1,740 60,169
W Holding Co., Inc. .. 3,288 58,855
Texas Regional Bancshares,
Inc.--Class A ...... 1,695 57,274
Boston Private Financial
Holdings, Inc. ..... 2,300 54,188
Comerica, Inc. ....... 1,040 48,464
Mercantile Bankshares
Corp. .............. 1,200 48,000
Pacific Capital Bancorp 1,470 44,820
Fremont General Corp. 3,330 42,324
Republic Bancorp,
Inc./MI ............ 3,030 40,360
Flagstar Bancorp, Inc. 1,700 39,015
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
4
BANKING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------
SouthTrust Corp. ..................................... 1,300 $ 38,207
UnionBanCal Corp. .................................... 720 35,712
Citizens Banking Corp./MI ............................ 1,280 33,805
Zions Bancorporation ................................. 600 33,510
Pacific Northwest Bancorp ............................ 900 32,085
Sky Financial Group, Inc. ............................ 1,380 31,064
Marshall & Ilsley Corp. .............................. 900 28,368
Synovus Financial Corp. .............................. 1,000 24,990
Independence Community Bank Corp. .................... 700 24,451
North Fork Bancorporation, Inc. ...................... 600 20,850
PFF Bancorp, Inc. .................................... 646 20,594
Wintrust Financial Corp. ............................. 500 18,835
Greater Bay Bancorp+ ................................. 850 17,680
AmSouth Bancorporation+ .............................. 800 16,976
Provident Bankshares Corp. ........................... 538 15,198
People's Bank/Bridgeport CT .......................... 500 14,970
New Century Financial Corp. .......................... 500 14,160
FirstFed Financial Corp.* ............................ 341 13,470
Mellon Financial Corp. ............................... 300 9,042
Sovereign Bancorp, Inc.+ ............................. 470 8,719
National Commerce Financial Corp. .................... 200 4,976
----------
TOTAL COMMON STOCKS
(Cost $7,691,205) .................................. 9,087,628
----------
FACE
AMOUNT
-------
REPURCHASE AGREEMENTS 0.7%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $14,331 14,331
0.94% due 10/01/03 ................................. 1,020 1,020
0.93% due 10/01/03 ................................. 14,331 14,331
0.91% due 10/01/03 ................................. 14,331 14,331
0.90% due 10/01/03 ................................. 20,231 20,231
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $64,244) ..................................... 64,244
----------
TOTAL INVESTMENTS 100%
(Cost $7,755,449) .................................. $9,151,872
----------
----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 5
BASIC MATERIALS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 97.9%
Dow Chemical Co. ..... 9,937 $ 323,350
EI Du Pont de Nemours
& Co. .............. 7,183 287,392
Alcoa, Inc.+ ......... 10,675 279,258
International Paper Co.+ 6,877 268,341
Weyerhaeuser Co.+ .... 3,921 229,182
Praxair, Inc. ........ 3,301 204,497
PPG Industries, Inc. . 3,660 191,125
Newmont Mining Corp.+ 4,879 190,720
Georgia-Pacific Corp. 7,496 181,703
Freeport-McMoRan
Copper & Gold,
Inc.--Class B+ ..... 5,192 171,855
Monsanto Co.+ ........ 7,144 171,027
Air Products & Chemicals,
Inc.+ .............. 3,385 152,663
Engelhard Corp. ...... 5,018 138,848
Ball Corp. ........... 2,477 133,758
Ecolab, Inc.+ ........ 5,260 132,815
Sigma-Aldrich Corp.+ . 2,487 129,175
Eastman Chemical Co.+ 3,532 118,322
Bemis Co. ............ 2,561 113,452
Rohm & Haas Co. ...... 3,329 111,355
Sealed Air Corp.*+ ... 2,305 108,865
Louisiana-Pacific Corp.* 7,843 108,077
Cabot Corp. .......... 3,771 107,511
Scotts Co.--Class A* . 1,960 107,212
International Flavors &
Fragrances, Inc. ... 3,239 107,146
Cytec Industries, Inc.* 2,739 99,974
Pactiv Corp.* ........ 4,816 97,668
Airgas, Inc. ......... 5,329 94,856
Martin Marietta Materials,
Inc. ............... 2,562 93,385
FMC Corp.* ........... 3,565 89,838
Albemarle Corp. ...... 3,254 89,322
Great Lakes Chemical
Corp. .............. 4,289 86,252
Georgia Gulf Corp.+ .. 3,686 86,068
Potlatch Corp. ....... 2,826 83,989
Worthington Industries,
Inc. ............... 6,591 82,783
Phelps Dodge Corp.* .. 1,736 81,245
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
MeadWestvaco Corp.+ .. 3,163 $ 80,657
Steel Dynamics, Inc.*+ 5,252 79,515
Olin Corp.+ .......... 5,005 79,179
Florida Rock Industries,
Inc. ............... 1,530 75,888
Massey Energy Co. .... 5,566 74,028
Vulcan Materials Co. . 1,846 73,674
IMC Global, Inc. ..... 11,464 73,484
Schulman A, Inc. ..... 4,500 71,370
Minerals Technologies,
Inc.+ .............. 1,344 68,410
Nucor Corp.+ ......... 1,318 60,470
Aptargroup, Inc. ..... 1,633 59,915
United States Steel
Corp.+ ............. 3,132 57,566
MacDermid, Inc. ...... 2,141 56,629
HB Fuller Co. ........ 2,300 55,821
Temple-Inland, Inc. .. 1,115 54,133
OM Group, Inc.* ...... 3,525 51,606
Bowater, Inc.+ ....... 1,191 50,093
Wellman, Inc. ........ 6,520 48,965
Valspar Corp. ........ 949 44,271
Carpenter Technology
Corp. .............. 1,991 42,687
Longview Fibre Co. ... 4,066 39,725
Packaging Corp.
of America* ........ 2,030 39,423
Lyondell Chemical Co. 3,045 38,915
Commercial Metals Co. 2,040 37,475
Arch Chemicals, Inc. . 1,800 37,440
Sonoco Products Co. .. 1,641 36,020
Rayonier, Inc. ....... 877 35,606
Buckeye Technologies,
Inc.* .............. 3,810 34,633
Rock-Tenn Co.--Class A 2,336 34,059
Lubrizol Corp. ....... 1,022 33,164
Boise Cascade Corp.+ . 1,145 31,602
Deltic Timber Corp. .. 1,080 31,234
Century Aluminum Co.* 2,800 30,380
Myers Industries, Inc. 2,900 29,029
Crompton Corp. ....... 4,621 26,848
RPM International, Inc. 2,033 26,551
Peabody Energy Corp. . 840 26,351
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
6
BASIC MATERIALS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------
Brush Engineered Materials, Inc.* .................... 2,300 $ 23,575
Hercules, Inc.* ...................................... 2,073 23,487
Quaker Chemical Corp. ................................ 1,000 23,260
Ryerson Tull, Inc. ................................... 2,750 21,450
Arch Coal, Inc.+ ..................................... 876 19,456
Penford Corp. ........................................ 1,400 18,200
Allegheny Technologies, Inc. ......................... 2,683 17,574
Steel Technologies, Inc. ............................. 1,315 16,372
IMCO Recycling, Inc.* ................................ 2,500 15,375
Commonwealth Industries, Inc. ........................ 3,000 14,250
Ferro Corp. .......................................... 557 11,898
AM Castle & Co.* ..................................... 2,500 11,100
AK Steel Holding Corp.* .............................. 4,604 9,208
Cambrex Corp. ........................................ 350 7,945
Quanex Corp. ......................................... 220 7,392
Wausau-Mosinee Paper Corp. ........................... 569 6,947
PolyOne Corp. ........................................ 1,115 4,382
Texas Industries, Inc. ............................... 100 2,460
RTI International Metals, Inc.* ...................... 102 1,073
----------
TOTAL COMMON STOCKS
(Cost $6,235,684) .................................. 7,135,249
----------
FACE
AMOUNT
-------
REPURCHASE AGREEMENTS 2.1%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $34,188 34,188
0.94% due 10/01/03 ................................. 2,433 2,433
0.93% due 10/01/03 ................................. 34,188 34,188
0.91% due 10/01/03 ................................. 34,188 34,188
0.90% due 10/01/03 ................................. 48,265 48,265
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $153,262) .................................... 153,262
----------
TOTAL INVESTMENTS 100%
(Cost $6,388,946) .................................. $7,288,511
----------
----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 7
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 100.0%
Amgen, Inc.*+ ........ 283,543 $ 18,308,372
Genentech, Inc.*+ .... 166,325 13,329,285
Gilead Sciences,
Inc.*+ ............. 136,910 7,657,376
Genzyme Corp.*+ ...... 157,627 7,290,249
Serono SA--SP ADR .... 383,086 6,274,949
Biogen, Inc.* ........ 160,012 6,117,259
Celgene Corp.*+ ...... 140,874 6,104,070
Cephalon, Inc.*+ ..... 107,498 4,936,308
Millennium
Pharmaceuticals,
Inc.*+ ............. 305,178 4,696,689
Chiron Corp.*+ ....... 84,497 4,367,650
ICOS Corp.*+ ......... 107,847 4,132,697
Affymetrix, Inc.* .... 177,600 3,727,824
Alkermes, Inc.*+ ..... 264,399 3,627,554
Abgenix, Inc.*+ ...... 235,670 3,414,858
MedImmune, Inc.*+ .... 101,301 3,343,946
Human Genome Sciences,
Inc.*+ ............. 241,126 3,293,781
Neurocrine Biosciences,
Inc.*+ ............. 63,200 3,129,664
InterMune, Inc.* ..... 160,635 3,064,916
ImClone Systems, Inc.*+ 76,525 2,963,048
Enzon Pharmaceuticals,
Inc.* .............. 233,293 2,715,531
OSI Pharmaceuticals,
Inc.*+ ............. 82,216 2,669,554
Geron Corp.*+ ........ 187,600 2,570,120
IDEXX Laboratories,
Inc.*+ ............. 58,640 2,491,614
Regeneron Pharmaceuticals,
Inc.* .............. 141,000 2,491,470
Martek Biosciences
Corp.*+ ............ 46,300 2,438,621
IDEC Pharmaceuticals
Corp.*+ ............ 73,006 2,420,149
Gen-Probe, Inc.* ..... 44,000 2,383,480
QLT, Inc.*+ .......... 134,643 2,150,249
Cell Therapeutics,
Inc.*+ ............. 187,094 2,127,259
Charles River Laboratories
International, Inc.* 69,100 2,120,679
Invitrogen Corp.*+ ... 35,433 2,054,760
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Vertex Pharmaceuticals,
Inc.*+ ............. 158,737 $ 1,952,465
Medarex, Inc.*+ ...... 311,400 1,846,602
Dendreon Corp.* ...... 203,401 1,800,099
Applera Corp.--Celera
Genomics Group* .... 153,239 1,791,364
Enzo Biochem, Inc.* .. 82,797 1,615,369
Amylin Pharmaceuticals,
Inc.*+ ............. 56,675 1,600,502
BioMarin Pharmaceutical,
Inc.* .............. 205,315 1,572,713
Connetics Corp.* ..... 84,150 1,519,749
Cell Genesys, Inc.* .. 119,018 1,497,246
Corixa Corp.*+ ....... 187,849 1,495,278
ILEX Oncology, Inc.*+ 86,928 1,443,874
Telik, Inc.* ......... 70,400 1,411,520
Onyx Pharmaceuticals,
Inc.* .............. 64,633 1,392,841
Tularik, Inc.* ....... 138,661 1,367,197
Digene Corp.*+ ....... 30,800 1,258,488
Isis Pharmaceuticals,
Inc.* .............. 190,059 1,239,185
Exelixis, Inc.* ...... 171,636 1,225,481
SciClone Pharmaceuticals,
Inc.* .............. 148,178 1,170,606
Transkaryotic Therapies,
Inc.* .............. 108,311 1,131,850
Indevus Pharmaceuticals,
Inc.* .............. 209,794 1,122,398
Cubist Pharmaceuticals,
Inc.* .............. 87,716 946,456
Albany Molecular Research,
Inc.*+ ............. 62,600 927,106
ID Biomedical Corp.* . 47,000 822,030
Pharmacopeia, Inc.* .. 62,294 791,072
Emisphere Technologies,
Inc.* .............. 98,032 711,712
Gene Logic, Inc.* .... 150,136 705,639
NeoPharm, Inc.*+ ..... 42,296 634,440
Caliper Technologies Corp.
NMS* ............... 88,566 553,538
Techne Corp.* ........ 14,500 460,955
Novavax, Inc.* ....... 52,526 385,541
Diversa Corp.* ....... 48,844 378,541
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
8
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CuraGen Corp.* ....................................... 69,314 $ 348,649
Genta, Inc.*+ ........................................ 25,675 325,302
Luminex Corp.*+ ...................................... 48,028 324,189
Tanox, Inc.* ......................................... 15,732 314,797
Serologicals Corp.* .................................. 18,400 241,960
Antigenics, Inc.*+ ................................... 19,714 240,511
Avigen, Inc.* ........................................ 44,237 230,032
Nektar Therapeutics* ................................. 15,549 199,027
NPS Pharmaceuticals, Inc.* ........................... 6,436 179,243
XOMA Ltd.* ........................................... 23,545 174,233
ImmunoGen, Inc.* ..................................... 38,433 171,027
Atrix Laboratories, Inc.* ............................ 6,026 124,075
------------
TOTAL COMMON STOCKS
(Cost $136,780,144) ................................ 178,058,883
------------
TOTAL INVESTMENTS 100%
(Cost $136,780,144) ................................ $178,058,883
------------
------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 9
CONSUMER PRODUCTS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 99.2%
Procter & Gamble Co.+ 11,116 $ 1,031,787
Altria Group, Inc. ... 20,640 904,032
PepsiCo, Inc. ........ 19,597 898,131
Coca-Cola Co. ........ 18,970 814,951
Colgate-Palmolive Co.+ 10,774 602,159
Anheuser-Busch Cos.,
Inc.+ .............. 11,661 575,354
eBay, Inc.*+ ......... 9,708 519,475
General Mills, Inc. .. 10,948 515,322
Kraft Foods, Inc.--
Class A+ ........... 16,853 497,163
H.J. Heinz Co. ....... 13,868 475,395
Clorox Co. ........... 9,962 456,957
Wm. Wrigley Jr. Co. .. 8,071 446,326
Cendant Corp.*+ ...... 19,905 372,024
Dean Foods Co.* ...... 11,552 358,459
McCormick & Co., Inc. 12,600 345,492
Hormel Foods Corp. ... 14,300 328,614
Dial Corp. ........... 14,900 320,946
Constellation Brands, Inc.--
Class A* ........... 10,500 320,145
J.M. Smucker Co. ..... 7,500 316,200
Rent-A-Center, Inc.* . 9,407 303,846
Dreyer's Grand Ice Cream
Holdings, Inc. ..... 3,900 303,264
Kimberly-Clark Corp. . 5,770 296,116
Lancaster Colony Corp. 7,200 286,344
Church & Dwight Co.,
Inc. ............... 7,968 278,800
Apollo Group, Inc.--
Class A*+ .......... 4,087 269,865
Universal Corp./Richmond
VA ................. 6,400 269,632
Gillette Co. ......... 8,247 263,739
Winn-Dixie Stores, Inc. 27,300 263,445
Hershey Foods Corp. .. 3,089 224,509
Weight Watchers
International, Inc.* 5,162 214,739
Career Education Corp.* 4,634 209,920
H&R Block, Inc.+ ..... 4,747 204,833
WD-40 Co. ............ 6,400 202,816
Schweitzer-Mauduit
International, Inc. 7,800 196,950
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
DIMON, Inc. .......... 27,500 $ 189,750
Lance, Inc. .......... 18,800 186,872
ConAgra Foods, Inc. .. 8,774 186,360
Walgreen Co. ......... 6,000 183,840
Sysco Corp.+ ......... 5,548 181,475
Avon Products, Inc. .. 2,756 177,927
Duane Reade, Inc.* ... 11,100 177,045
Kroger Co.* .......... 9,717 173,643
Fortune Brands, Inc. . 2,836 160,943
Interstate Bakeries
Corp. .............. 9,900 148,500
Performance Food Group
Co.*+ .............. 3,600 146,556
ITT Educational Services,
Inc.* .............. 2,986 143,089
Corinthian Colleges,
Inc.* .............. 2,498 142,786
Newell Rubbermaid,
Inc.+ .............. 6,537 141,657
Tyson Foods, Inc.--
Class A+ ........... 9,600 135,648
ServiceMaster Co. .... 12,081 123,951
Black & Decker Corp. . 2,993 121,366
United Rentals, Inc.*+ 7,498 120,643
Tootsie Roll Industries,
Inc. ............... 3,800 117,800
Stanley Works ........ 3,854 113,770
Sara Lee Corp. ....... 6,132 112,584
Priceline.com, Inc.* . 3,878 112,423
Estee Lauder Cos., Inc.--
Class A ............ 3,286 112,053
Kellogg Co. .......... 3,239 108,021
Sylvan Learning Systems,
Inc.*+ ............. 3,879 105,819
DeVry, Inc.* ......... 4,143 98,023
Education Management
Corp.* ............. 1,694 97,693
Energizer Holdings,
Inc.* .............. 2,500 91,925
Safeway, Inc.* ....... 3,791 86,966
Service Corp.
International/US* .. 18,485 84,476
Casey's General Stores,
Inc. ............... 5,449 76,449
Archer-Daniels-Midland
Co. ................ 5,722 75,015
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
10
CONSUMER PRODUCTS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------
SUPERVALU, Inc. ...................................... 3,000 $ 71,580
Snap-on, Inc. ........................................ 2,496 69,014
Nash Finch Co. ....................................... 4,400 68,200
Campbell Soup Co. .................................... 2,571 68,131
Whole Foods Market, Inc.* ............................ 1,100 60,698
Stewart Enterprises, Inc.--Class A* .................. 15,685 59,603
Sotheby's Holdings, Inc.--Class A* ................... 5,279 57,119
Ralcorp Holdings, Inc.* .............................. 2,000 55,400
Scotts Co.--Class A* ................................. 959 52,457
Brown-Forman Corp.--Class B .......................... 600 47,472
Coca-Cola Enterprises, Inc.+ ......................... 2,185 41,646
Tupperware Corp. ..................................... 2,987 39,966
Flowers Foods, Inc. .................................. 1,700 38,760
Albertson's, Inc.+ ................................... 1,843 37,911
R.J. Reynolds Tobacco Holdings, Inc. ................. 751 29,695
Pepsi Bottling Group, Inc. ........................... 1,389 28,586
Robert Mondavi Corp.--Class A* ....................... 900 27,882
Wild Oats Markets, Inc.* ............................. 2,500 27,325
Blyth, Inc. .......................................... 889 23,985
Pre-Paid Legal Services, Inc.*+ ...................... 1,023 23,959
Krispy Kreme Doughnuts, Inc.* ........................ 569 21,907
Sensient Technologies Corp. .......................... 900 18,900
Learning Tree International, Inc.* ................... 1,127 18,900
Wal-Mart Stores, Inc. ................................ 300 16,755
CVS Corp. ............................................ 522 16,213
-----------
TOTAL COMMON STOCKS
(Cost $17,666,495) ................................. 19,144,882
-----------
FACE
AMOUNT
--------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $34,715 34,715
0.94% due 10/01/03 ................................. 2,471 2,471
0.93% due 10/01/03 ................................. 34,715 34,715
0.91% due 10/01/03 ................................. 34,715 34,715
0.90% due 10/01/03 ................................. 49,010 49,010
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $155,626) .................................... 155,626
-----------
TOTAL INVESTMENTS 100%
(Cost $17,822,121) ................................. $19,300,508
-----------
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 11
ELECTRONICS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 97.3%
Intel Corp. .......... 229,879 $ 6,323,971
Texas Instruments,
Inc. ............... 110,518 2,519,810
Applied Materials,
Inc.*+ ............. 128,764 2,335,779
Analog Devices, Inc.*+ 51,756 1,967,763
Maxim Integrated
Products, Inc.+ .... 43,504 1,718,408
Xilinx, Inc.*+ ....... 56,636 1,614,692
KLA-Tencor Corp.*+ ... 31,042 1,595,559
Linear Technology Corp. 44,343 1,587,923
Altera Corp.* ........ 81,225 1,535,152
Microchip Technology,
Inc.+ .............. 53,028 1,269,490
National Semiconductor
Corp.*+ ............ 37,870 1,222,822
Teradyne, Inc.*+ ..... 52,800 982,080
Lam Research Corp.*+ . 42,650 944,697
Cabot Microelectronics
Corp.*+ ............ 16,318 909,565
LSI Logic Corp.*+ .... 98,572 886,162
QLogic Corp.*+ ....... 18,459 867,758
Novellus Systems,
Inc.*+ ............. 25,469 859,579
Integrated Device
Technology, Inc.* .. 67,734 841,256
Cypress Semiconductor
Corp.*+ ............ 45,895 811,424
Silicon Laboratories,
Inc.*+ ............. 16,667 749,182
Micron Technology,
Inc.*+ ............. 55,013 738,274
Atmel Corp.* ......... 179,787 720,946
Advanced Micro Devices,
Inc.*+ ............. 64,600 717,706
Intersil Corp.--
Class A* ........... 29,482 701,672
International Rectifier
Corp.*+ ............ 17,000 636,480
Broadcom Corp.--
Class A*+ .......... 21,838 581,328
NVIDIA Corp.*+ ....... 36,315 577,808
Photronics, Inc.*+ ... 27,056 575,211
Cymer, Inc.*+ ........ 13,880 571,856
Power Integrations,
Inc.* .............. 15,697 521,768
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
United Microelectronics
Corp.--SP ADR*+ .... 102,812 $ 463,682
Brooks Automation,
Inc.* .............. 22,000 459,800
Applied Micro Circuits
Corp.* ............. 92,924 452,540
Ultratech, Inc.* ..... 15,890 448,416
Infineon Technologies
AG--SP ADR* ........ 34,700 447,283
Skyworks Solutions,
Inc.*+ ............. 48,838 444,426
Marvell Technology Group
Ltd.* .............. 11,589 437,485
DSP Group, Inc.* ..... 14,849 369,889
Standard Microsystems
Corp.* ............. 12,720 343,186
Kulicke & Soffa Industries,
Inc.* .............. 30,803 333,904
Actel Corp.*+ ........ 13,230 317,123
Agere Systems,
Inc.--Class A*+ .... 95,200 292,264
Lattice Semiconductor
Corp.* ............. 40,177 285,658
Kopin Corp.* ......... 40,703 282,072
Helix Technology Corp. 17,049 279,092
Rudolph Technologies,
Inc.* .............. 14,273 275,612
Exar Corp.* .......... 18,722 264,542
Semtech Corp.*+ ...... 13,998 258,403
Microsemi Corp.* ..... 16,583 252,725
Vitesse Semiconductor
Corp.* ............. 33,700 215,680
STMicroelectronics NV 8,594 206,686
RF Micro Devices,
Inc.*+ ............. 22,000 204,380
OmniVision Technologies,
Inc.*+ ............. 4,724 199,542
Integrated Circuit Systems,
Inc.* .............. 6,400 192,256
MKS Instruments, Inc.* 8,569 185,605
Supertex, Inc.* ...... 9,992 179,256
Alliance Semiconductor
Corp.* ............. 32,774 178,291
PMC--Sierra, Inc.*+ .. 10,083 133,005
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
12
ELECTRONICS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------
Fairchild Semiconductor
International, Inc.*+ .............................. 7,800 $ 129,324
Three-Five Systems, Inc.* ............................ 21,300 117,363
Varian Semiconductor Equipment Associates, Inc.* ..... 1,870 70,031
-----------
TOTAL COMMON STOCKS
(Cost $30,006,935) ................................. 46,605,642
-----------
FACE
AMOUNT
--------
REPURCHASE AGREEMENTS 2.7%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $288,793 288,793
0.94% due 10/01/03 ................................. 20,558 20,558
0.93% due 10/01/03 ................................. 288,793 288,793
0.91% due 10/01/03 ................................. 288,793 288,793
0.90% due 10/01/03 ................................. 407,709 407,709
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,294,646) .................................. 1,294,646
-----------
TOTAL INVESTMENTS 100%
(Cost $31,301,581) ................................. $47,900,288
-----------
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 13
ENERGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 99.0%
Exxon Mobil Corp. .... 34,214 $ 1,252,232
BP PLC--SP ADR+ ..... 22,640 953,144
ChevronTexaco Corp. .. 11,474 819,817
Total SA--SP ADR+ .... 9,490 719,342
ConocoPhillips ....... 12,994 711,421
Royal Dutch Petroleum
Co.+ ............... 15,270 674,934
Shell Transport & Trading
Co. PLC--SP ADR .... 13,620 514,291
Anadarko Petroleum
Corp. .............. 10,667 445,454
Burlington Resources,
Inc. ............... 9,049 436,162
Devon Energy Corp.+ .. 8,153 392,893
Kerr-McGee Corp. ..... 8,110 362,030
EOG Resources, Inc. .. 8,570 357,712
Valero Energy Corp. .. 9,330 357,059
Amerada Hess Corp.+ .. 7,018 351,602
Repsol YPF SA--SP ADR 19,280 317,542
Pogo Producing Co.+ .. 6,990 316,507
Schlumberger Ltd.+ ... 6,530 316,052
Newfield Exploration
Co.* ............... 7,600 293,132
Ashland, Inc.+ ....... 8,840 290,394
Unocal Corp.+ ........ 9,050 285,256
Tidewater, Inc. ...... 9,630 272,529
Varco International,
Inc.* .............. 16,100 272,251
Patterson-UTI Energy,
Inc.* .............. 9,840 266,369
Overseas Shipholding
Group, Inc.+ ....... 10,015 258,888
Spinnaker Exploration
Co.* ............... 10,560 253,440
Forest Oil Corp.* .... 10,540 252,433
Evergreen Resources,
Inc.*+ ............. 9,300 251,100
Cabot Oil & Gas Corp. 9,300 241,800
Vintage Petroleum, Inc. 21,990 239,251
Stone Energy Corp.* .. 6,620 233,554
Oceaneering International,
Inc.* .............. 9,700 228,144
Remington Oil & Gas
Corp.* ............. 12,490 226,693
Nuevo Energy Co.* .... 11,560 210,045
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Cooper Cameron Corp.* 4,330 $ 200,089
TEPPCO Partners LP ... 4,900 173,362
GulfTerra Energy
Partners LP ........ 4,300 172,430
Westport Resources
Corp.* ............. 7,220 169,959
Chesapeake Energy Corp. 15,600 168,168
EnCana Corp. ......... 4,500 163,710
Enterprise Products
Partners LP ........ 7,240 163,624
Offshore Logistics,
Inc.* .............. 7,926 160,898
Premcor, Inc.* ....... 6,940 160,800
Occidental Petroleum
Corp. .............. 4,550 160,297
China Petroleum &
Chemical Corp.--
SP ADR ............. 5,620 153,876
Apache Corp.+ ........ 1,959 135,837
Teekay Shipping Corp. 3,100 131,130
Halliburton Co. ...... 5,350 129,738
Baker Hughes, Inc. ... 3,890 115,105
Cimarex Energy Co.* .. 5,740 112,504
Swift Energy Co.*+ ... 7,580 106,954
Marathon Oil Corp. ... 3,689 105,137
Maverick Tube Corp.* . 5,425 84,196
Cal Dive International,
Inc.*+ ............. 3,414 66,368
Transocean, Inc.* .... 2,860 57,200
Unit Corp.* .......... 2,875 54,165
Murphy Oil Corp. ..... 904 53,110
Hanover Compressor Co.* 4,925 48,758
Nabors Industries Ltd.*+ 1,220 45,457
BJ Services Co.* ..... 1,330 45,446
Noble Corp.* ......... 959 32,596
GlobalSantaFe Corp. .. 1,100 26,345
Weatherford International
Ltd.*+ ............. 530 20,023
XTO Energy, Inc. ..... 900 18,891
Smith International, Inc.* 490 17,630
ENSCO International,
Inc. ............... 615 16,494
------------
TOTAL COMMON STOCKS
(Cost $15,820,262) . 16,643,770
------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
14
ENERGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.0%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $ 37,008 $ 37,008
0.94% due 10/01/03 ................................. 2,634 2,634
0.93% due 10/01/03 ................................. 37,008 37,008
0.91% due 10/01/03 ................................. 37,008 37,008
0.90% due 10/01/03 ................................. 52,245 52,245
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $165,903) .................................... 165,903
-----------
TOTAL INVESTMENTS 100%
(Cost $15,986,165) ................................. $16,809,673
-----------
-----------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 15
ENERGY SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------------
COMMON STOCKS 100.0%
Schlumberger Ltd.+ ................................... 36,674 $ 1,775,022
Baker Hughes, Inc.+ .................................. 42,663 1,262,398
Halliburton Co. ...................................... 42,635 1,033,899
BJ Services Co.* ..................................... 29,046 992,502
Noble Corp.* ......................................... 28,039 953,046
Weatherford International Ltd.*+ ..................... 24,950 942,611
ENSCO International, Inc.+ ........................... 34,454 924,056
Cooper Cameron Corp.* ................................ 16,078 742,964
Smith International, Inc.* ........................... 19,866 714,779
Transocean, Inc.* .................................... 35,067 701,340
Patterson-UTI Energy, Inc.*+ ......................... 24,920 674,584
Nabors Industries Ltd.*+ ............................. 17,392 648,026
Tidewater, Inc. ...................................... 22,865 647,080
Varco International, Inc.* ........................... 28,684 485,046
FMC Technologies, Inc.* .............................. 20,470 438,467
Helmerich & Payne, Inc. .............................. 15,203 397,406
Rowan Cos., Inc.*+ ................................... 15,933 391,633
Maverick Tube Corp.* ................................. 21,699 336,768
Pride International, Inc.*+ .......................... 19,493 330,406
Unit Corp.* .......................................... 16,713 314,873
SEACOR SMIT, Inc.* ................................... 8,493 307,192
Hanover Compressor Co.* .............................. 30,958 306,484
Cal Dive International, Inc.*+ ....................... 15,211 295,702
CARBO Ceramics, Inc. ................................. 7,380 266,861
Grant Prideco, Inc.* ................................. 25,961 264,543
Oceaneering International, Inc.* ..................... 11,215 263,777
Tetra Technologies, Inc.* ............................ 12,200 251,564
W-H Energy Services, Inc.* ........................... 13,639 242,774
Offshore Logistics, Inc.* ............................ 11,802 239,581
National-Oilwell, Inc.* .............................. 12,637 229,235
GlobalSantaFe Corp.+ ................................. 7,820 187,289
Precision Drilling Corp.* ............................ 4,800 180,768
Key Energy Services, Inc.*+ .......................... 18,599 179,480
Atwood Oceanics, Inc.* ............................... 6,900 165,531
Input/Output, Inc.* .................................. 35,824 140,072
Hydril* .............................................. 2,422 49,070
Lone Star Technologies, Inc.*+ ....................... 1,937 26,130
Dril-Quip, Inc.* ..................................... 1,200 20,280
-----------
TOTAL COMMON STOCKS
(Cost $15,059,128) ................................. 18,323,239
-----------
TOTAL INVESTMENTS 100%
(Cost $15,059,128) ................................. $18,323,239
-----------
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
16
FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 98.7%
Citigroup, Inc. ...... 24,903 $ 1,133,336
Wells Fargo & Co.+ ... 16,827 866,590
Bank of America Corp. 10,726 837,057
Wachovia Corp. ....... 17,310 712,999
Bank One Corp. ....... 18,161 701,923
American International
Group, Inc.+ ....... 10,136 584,847
FleetBoston Financial
Corp. .............. 19,030 573,754
MBNA Corp. ........... 24,881 567,287
Prudential Financial,
Inc.+ .............. 14,810 553,302
Allstate Corp. ....... 15,119 552,297
SLM Corp.+ ........... 14,140 550,894
American Express Co. . 12,024 541,801
John Hancock Financial
Services, Inc. ..... 15,940 538,772
M&T Bank Corp. ....... 5,700 497,610
Washington Mutual,
Inc.+ .............. 12,610 496,456
XL Capital Ltd. ...... 6,400 495,616
J.P. Morgan Chase & Co. 14,376 493,528
ACE Ltd. ............. 14,800 489,584
National City Corp. .. 16,120 474,895
Charter One Financial,
Inc. ............... 15,100 462,060
Regions Financial Corp. 12,720 435,660
Union Planters Corp. . 13,379 423,312
Radian Group, Inc.+ .. 9,500 421,800
Investors Financial
Services Corp.+ .... 13,170 413,538
Merrill Lynch & Co.,
Inc.+ .............. 7,558 404,580
AmerUs Group Co.+ .... 11,760 399,840
MetLife, Inc. ........ 14,200 398,310
Morgan Stanley ....... 7,664 386,725
W.R. Berkley Corp. ... 11,130 381,314
U.S. Bancorp+ ........ 15,741 377,627
MGIC Investment Corp.+ 7,080 368,656
American Financial Group,
Inc./OH ............ 16,930 368,227
MAF Bancorp, Inc. .... 9,473 361,869
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Staten Island Bancorp,
Inc. ............... 18,120 $ 352,434
Seacoast Financial Services
Corp. .............. 16,922 350,455
Riggs National Corp. . 22,114 348,295
Hilb, Rogal & Hamilton
Co. ................ 10,860 337,094
Equity Residential ... 11,120 325,594
Downey Financial Corp. 6,960 325,241
Eaton Vance Corp.+ ... 9,590 321,073
KeyCorp .............. 12,000 306,840
LaBranche & Co., Inc. 20,840 304,264
Colonial BancGroup,
Inc.+ .............. 21,070 304,251
Silicon Valley
Bancshares* ........ 10,920 301,720
Principal Financial Group,
Inc. ............... 9,720 301,223
Golden West Financial
Corp. .............. 3,360 300,754
Lincoln National Corp. 8,460 299,315
Equity Office Properties
Trust ............. 10,220 281,357
Simon Property Group,
Inc. ............... 6,310 274,990
Huntington Bancshares,
Inc. ............... 13,700 271,123
Bank of New York Co.,
Inc. ............... 9,250 269,267
LandAmerica Financial
Group, Inc. ........ 5,660 259,454
SEI Investments Co. .. 7,950 258,375
PNC Financial Services
Group, Inc. ........ 5,400 256,932
Capital One Financial
Corp. .............. 4,450 253,828
PMI Group, Inc. ...... 7,140 240,975
First Tennessee National
Corp.+ ............. 4,900 208,054
Independence Community
Bank Corp. ......... 5,900 206,087
Irwin Financial Corp. 8,300 201,690
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 17
FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Plum Creek Timber (REIT)
Co., Inc.+ ......... 7,820 $ 198,941
Webster Financial Corp. 4,940 197,007
UICI* ................ 15,676 196,577
Everest Re Group Ltd.+ 2,500 187,900
Federated Investors, Inc.--
Class B ............ 6,720 186,144
Charles Schwab Corp.+ 15,620 186,034
Fannie Mae ........... 2,524 177,185
Boston Private Financial
Holdings, Inc. ..... 7,500 176,700
Hartford Financial Services
Group, Inc.+ ....... 3,280 172,626
Moody's Corp. ........ 3,100 170,407
Legg Mason, Inc.+ .... 2,320 167,504
Stewart Information
Services Corp.* .... 5,700 160,968
Leucadia National Corp.+ 4,219 159,689
Commerce Bancorp,
Inc./NJ+ ........... 3,280 157,145
Lehman Brothers Holdings,
Inc.+ .............. 2,120 146,450
E*TRADE Group, Inc.*+ 15,230 141,030
MONY Group, Inc. ..... 4,230 137,687
Protective Life Corp. 4,400 131,340
Cash America International,
Inc. ............... 7,800 127,920
Flagstar Bancorp, Inc. 5,520 126,684
United Dominion Realty
Trust, Inc. ........ 6,410 117,367
Waddell & Reed Financial,
Inc.--Class A ...... 4,910 115,729
GBC Bancorp/CA ....... 3,000 115,050
Liberty Property Trust 3,080 113,898
Aon Corp.+ ........... 5,380 112,173
New Plan Excel Realty
Trust .............. 4,740 110,442
UnumProvident Corp. .. 7,400 109,298
United Bankshares, Inc. 3,591 107,550
First American Corp. . 4,300 107,070
State Street Corp.+ .. 2,320 104,400
Northern Trust Corp. . 2,430 103,129
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Goldman Sachs Group,
Inc. ............... 1,170 $ 98,163
Chubb Corp. .......... 1,480 96,022
New Century Financial
Corp. .............. 3,330 94,306
Apartment Investment &
Management Co.--
Class A+ ........... 2,390 94,070
Essex Property Trust,
Inc. ............... 1,500 94,065
Providian Financial
Corp.* ............. 7,760 91,490
Dime Community
Bancshares ......... 3,900 89,700
Fidelity National Financial,
Inc. ............... 2,916 87,655
Janus Capital Group,
Inc. ............... 5,650 78,931
SAFECO Corp.+ ........ 2,070 72,988
Freddie Mac .......... 1,360 71,196
RLI Corp. ............ 2,120 69,790
Fremont General Corp. 5,482 69,676
Mack-Cali Realty Corp. 1,700 66,640
AFLAC, Inc. .......... 2,020 65,246
Shurgard Storage Centers,
Inc.--Class A ...... 1,820 64,246
Hibernia Corp.--Class A 2,880 58,349
Ambac Financial Group,
Inc. ............... 900 57,600
Loews Corp. .......... 1,360 54,903
AmeriCredit Corp.*+ .. 5,290 54,487
Fifth Third Bancorp .. 920 51,032
SunTrust Banks, Inc. . 820 49,503
Capital Automotive
REIT+ .............. 1,500 45,765
Investment Technology
Group, Inc.* ....... 2,070 39,703
Greater Bay Bancorp+ . 1,800 37,440
Comerica, Inc. ....... 800 37,280
T. Rowe Price Group,
Inc. ............... 902 37,217
-----------
TOTAL COMMON STOCKS
(Cost $26,508,061) . 31,076,258
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
18
FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.3%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $ 93,430 $ 93,430
0.94% due 10/01/03 ................................. 6,651 6,651
0.93% due 10/01/03 ................................. 93,430 93,430
0.91% due 10/01/03 ................................. 93,430 93,430
0.90% due 10/01/03 ................................. 131,899 131,899
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $418,840) .................................... 418,840
-----------
TOTAL INVESTMENTS 100%
(Cost $26,926,901) ................................. $31,495,098
-----------
-----------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 19
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 98.9%
Pfizer, Inc. ......... 53,513 $ 1,625,725
Johnson & Johnson, Inc. 27,705 1,371,952
Bristol-Myers Squibb
Co. ................ 35,798 918,577
Medtronic, Inc. ...... 19,064 894,483
Wyeth ................ 18,977 874,840
Amgen, Inc.*+ ........ 10,977 708,785
UnitedHealth Group,
Inc. ............... 12,414 624,672
Merck & Co., Inc. .... 11,798 597,215
McKesson Corp.+ ...... 17,023 566,696
Gilead Sciences, Inc.*+ 9,849 550,855
Boston Scientific Corp.* 8,450 539,110
Becton Dickinson & Co. 14,500 523,740
Schering-Plough Corp. 32,294 492,161
King Pharmaceuticals,
Inc.* .............. 32,300 489,345
Applera Corp.--Applied
Biosystems Group ... 21,900 488,589
DENTSPLY International,
Inc. ............... 10,600 475,304
Cephalon, Inc.*+ ..... 9,900 454,608
Biogen, Inc.* ........ 11,400 435,822
Universal Health Services,
Inc.--Class B* ..... 8,800 435,160
Eli Lilly & Co. ...... 7,323 434,986
Beckman Coulter, Inc. 9,415 428,759
Abbott Laboratories .. 10,028 426,691
WellPoint Health
Networks, Inc.* .... 5,522 425,636
Apria Healthcare Group,
Inc.*+ ............. 15,400 421,652
IDEXX Laboratories,
Inc.*+ ............. 9,600 407,904
Sybron Dental Specialties,
Inc.* .............. 15,769 395,329
Advanced Medical Optics,
Inc.* .............. 21,200 380,752
Genzyme Corp.* ....... 8,100 374,625
NDCHealth Corp. ...... 17,700 370,815
Cerner Corp.*+ ....... 11,850 365,809
Vertex Pharmaceuticals,
Inc.*+ ............. 29,590 363,957
Invacare Corp. ....... 9,394 353,027
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Bausch & Lomb, Inc. .. 7,900 $ 348,785
Applera Corp.--Celera
Genomics Group* .... 28,426 332,300
Lincare Holdings, Inc.*+ 8,920 326,918
Respironics, Inc.* ... 7,450 311,261
Aventis SA--SP ADR ... 5,900 308,570
Novartis AG--SP ADR .. 7,850 304,894
Analogic Corp. ....... 6,300 302,400
Alkermes, Inc.* ...... 21,400 293,608
Sepracor, Inc.* ...... 10,650 293,301
Bio-Rad Laboratories,
Inc.--Class A* ..... 5,700 290,700
SurModics, Inc.*+ .... 10,800 289,872
Anthem, Inc.* ........ 4,008 285,891
Millennium
Pharmaceuticals,
Inc.*+ ............. 18,195 280,021
Viasys Healthcare,
Inc.* .............. 13,600 274,720
AstraZeneca PLC--
SP ADR+ ............ 6,170 267,778
Neurocrine Biosciences,
Inc.* .............. 5,400 267,408
Affymetrix, Inc.* .... 11,800 247,682
Baxter International,
Inc. ............... 8,506 247,184
Patterson Dental Co.*+ 4,000 230,320
First Health Group
Corp.* ............. 8,439 220,680
Humana, Inc.* ........ 12,150 219,307
Omnicare, Inc. ....... 5,951 214,593
Connetics Corp.* ..... 11,750 212,205
Coventry Health Care,
Inc.*+ ............. 3,700 195,138
Savient Pharmaceuticals,
Inc.* .............. 38,329 193,561
Tenet Healthcare
Corp.*+ ............ 13,051 188,978
Aetna, Inc. .......... 3,060 186,752
AdvancePCS* .......... 3,550 161,773
PacifiCare Health Systems,
Inc.* .............. 3,300 161,040
CIGNA Corp.+ ......... 3,435 153,373
Diagnostic Products
Corp. .............. 4,200 152,586
Cardinal Health, Inc. 2,554 149,128
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
20
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
HCA, Inc. ............ 3,993 $ 147,182
GlaxoSmithKline
PLC--SP ADR+ ....... 3,300 139,920
Forest Laboratories,
Inc.*+ ............. 2,566 132,021
Health Net, Inc.*+ ... 4,150 131,430
Datascope Corp. ...... 4,050 124,497
Human Genome Sciences,
Inc.* .............. 8,300 113,378
Shire Pharmaceuticals
PLC--SP ADR*+ ...... 4,900 108,339
Abgenix, Inc.*+ ...... 7,450 107,950
Oxford Health Plans,
Inc.* .............. 2,550 105,340
Varian Medical Systems,
Inc.* .............. 1,600 91,968
Osteotech, Inc.* ..... 10,800 88,452
Stryker Corp. ........ 1,123 84,573
Accredo Health, Inc.* 3,000 83,970
Guidant Corp. ........ 1,783 83,534
Express Scripts, Inc.*+ 1,350 82,552
ArQule, Inc.* ........ 17,680 81,328
OSI Pharmaceuticals,
Inc.*+ ............. 2,400 77,928
CONMED Corp.* ........ 3,700 76,368
Orthodontic Centers Of
America, Inc.*+ .... 8,650 68,162
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
ResMed, Inc.* ........ 1,500 $ 65,970
Dade Behring Holdings,
Inc.* .............. 2,300 64,975
Apogent Technologies,
Inc.* .............. 3,100 64,666
Quest Diagnostics,
Inc.*+ ............. 1,000 60,640
Medicines Co.* ....... 1,900 49,400
Pharmaceutical Resources,
Inc.* .............. 600 40,932
Allergan, Inc.+ ...... 500 39,365
Andrx Corp.* ......... 2,000 37,020
Alpharma, Inc.--Class A 1,800 33,480
MGI Pharma, Inc.* .... 800 31,408
Mid Atlantic Medical
Services, Inc.* .... 600 30,858
Sierra Health Services,
Inc.* .............. 1,450 29,798
Zimmer Holdings, Inc.*+ 500 27,550
St. Jude Medical, Inc.* 500 26,885
Chiron Corp.*+ ....... 501 25,897
-----------
TOTAL COMMON STOCKS
(Cost $23,368,877) . 28,688,044
-----------
FACE
AMOUNT
--------
REPURCHASE AGREEMENTS 1.1%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $ 73,038 73,038
0.94% due 10/01/03 ................................. 5,199 5,199
0.93% due 10/01/03 ................................. 73,038 73,038
0.91% due 10/01/03 ................................. 73,038 73,038
0.90% due 10/01/03 ................................. 103,113 103,113
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $327,426) .................................... 327,426
-----------
TOTAL INVESTMENTS 100%
(Cost $23,696,303) ................................. $29,015,470
-----------
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 21
INTERNET FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 98.7%
Cisco Systems, Inc.*+ 88,095 $ 1,721,376
AOL Time Warner, Inc.*+ 75,634 1,142,830
QUALCOMM, Inc+. ...... 23,720 987,701
eBay, Inc.*+ ......... 15,558 832,508
Amazon.com, Inc.*+ ... 14,660 708,958
Yahoo!, Inc.*+ ....... 18,060 638,963
Intuit, Inc.*+ ....... 12,420 599,141
Symantec Corp.*+ ..... 6,500 409,630
Foundry Networks,
Inc.*+ ............. 18,990 408,475
Check Point Software
Technologies Ltd.* . 23,578 396,110
Broadcom Corp.--
Class A* ........... 14,717 391,766
Juniper Networks,
Inc.*+ ............. 25,550 381,206
InterActiveCorp*+ .... 11,300 373,465
Sun Microsystems, Inc.* 98,612 326,406
BEA Systems, Inc.*+ .. 26,625 320,831
Earthlink, Inc.* ..... 38,190 314,304
Qwest Communications
International, Inc.* 81,276 276,338
E*TRADE Group, Inc.*+ 28,860 267,244
Overture Services,
Inc.* .............. 10,000 264,900
Siebel Systems, Inc.* 27,180 264,190
VeriSign, Inc.* ...... 18,944 255,176
S1 Corp.* ............ 46,930 236,996
Network Associates,
Inc.* .............. 15,039 206,937
WebMD Corp.*+ ........ 23,180 206,766
Research In Motion
Ltd.*+ ............. 5,400 206,280
United Online, Inc.* . 5,900 204,848
Macromedia, Inc.* .... 7,078 175,110
DoubleClick, Inc.*+ .. 15,090 162,519
CNET Networks, Inc.* . 20,430 144,644
Websense, Inc.* ...... 6,510 138,468
WebEx Communications,
Inc.*+ ............. 7,100 134,829
CIENA Corp.*+ ........ 21,830 129,015
CheckFree Corp.* ..... 5,418 108,360
Internet Security Systems,
Inc.* .............. 8,500 106,250
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Digital Insight Corp.* 4,867 $ 96,853
RealNetworks, Inc.*+ . 14,506 95,014
Netease.com, Inc.--SP
ADR*+ .............. 1,700 94,894
Netflix, Inc.*+ ...... 2,800 94,108
TIBCO Software, Inc.* 17,543 93,855
F5 Networks, Inc.* ... 4,853 93,372
j2 Global Communications,
Inc.* ............. 1,900 71,877
Ariba, Inc.* ......... 22,600 68,704
webMethods, Inc.* .... 7,700 61,446
Infospace, Inc.* ..... 2,500 51,025
Red Hat, Inc.* ....... 4,778 48,258
CMGI, Inc.* .......... 24,700 38,285
AsiaInfo Holdings, Inc.* 5,600 37,744
Akamai Technologies,
Inc.* .............. 7,100 30,459
Ask Jeeves, Inc.* .... 1,500 26,100
FindWhat.com* ........ 1,400 24,192
Register.com, Inc.* .. 4,900 22,099
------------
TOTAL COMMON STOCKS
(Cost $12,233,143) . 14,490,825
------------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 1.3%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 . $43,717 43,717
0.94% due 10/01/03 . 3,112 3,112
0.93% due 10/01/03 . 43,717 43,717
0.91% due 10/01/03 . 43,717 43,717
0.90% due 10/01/03 . 61,720 61,720
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $195,983) 195,983
------------
TOTAL INVESTMENTS 100%
(Cost $12,429,126) $ 14,686,808
------------
------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
22
LEISURE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 99.6%
McDonald's Corp. ..... 11,490 $ 270,475
Carnival Corp. ....... 5,969 196,320
Starbucks Corp.*+ .... 6,540 188,352
Electronic Arts, Inc.*+ 1,982 182,800
International Game
Technology, Inc.+ .. 6,228 175,318
Harley-Davidson, Inc. 3,568 171,978
Marriott International,
Inc.--Class A ...... 3,866 166,354
Mattel, Inc. ......... 8,624 163,511
Yum! Brands, Inc.* ... 4,530 134,179
Hilton Hotels Corp.+ . 8,180 132,680
Brinker International,
Inc.*+ ............. 3,850 128,436
Hasbro, Inc. ......... 6,760 126,277
Royal Caribbean Cruises
Ltd.+ .............. 4,118 115,757
Harrah's Entertainment,
Inc. ............... 2,710 114,118
Starwood Hotels & Resorts
Worldwide, Inc. .... 3,166 110,177
Applebee's International,
Inc. ............... 3,270 102,940
MGM Mirage, Inc.* .... 2,608 95,322
Eastman Kodak Co. .... 4,500 94,230
P.F. Chang's China Bistro,
Inc.* .............. 1,900 86,165
Outback Steakhouse, Inc. 2,200 83,314
Park Place Entertainment
Corp.* ............. 9,150 82,441
CBRL Group, Inc.+ .... 2,290 81,249
Polaris Industries, Inc. 1,086 80,527
Aztar Corp.* ......... 4,520 80,049
Papa John's International,
Inc.*+ ............. 3,080 76,415
Lone Star Steakhouse &
Saloon, Inc. ....... 3,650 76,285
Callaway Golf Co. .... 4,980 71,065
Harman International
Industries, Inc. ... 695 68,353
Bob Evans Farms, Inc. 2,510 67,042
GTECH Holdings Corp. . 1,560 66,846
Station Casinos, Inc. 2,020 61,812
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
ARAMARK Corp.--
Class B* ........... 2,440 $ 61,073
Darden Restaurants, Inc. 3,190 60,610
NVR, Inc.* ........... 100 46,650
Wendy's International,
Inc.+ .............. 1,440 46,512
Brunswick Corp. ...... 1,780 45,710
Activision, Inc.* .... 3,601 43,032
Shuffle Master, Inc.* 1,560 42,401
O'Charleys, Inc.* .... 2,780 41,227
Russell Corp. ........ 2,460 40,098
Ford Motor Co. ....... 3,700 39,849
Take-Two Interactive
Software, Inc.* .... 920 31,436
Mandalay Resort Group 770 30,500
THQ, Inc.* ........... 1,793 29,441
Ryan's Family Steak Houses,
Inc.* .............. 2,140 27,371
Ruby Tuesday, Inc. ... 1,130 27,244
Winnebago Industries,
Inc. ............... 590 26,302
Nautilus Group, Inc. . 1,974 24,912
Six Flags, Inc.* ..... 4,720 24,827
Pinnacle Entertainment,
Inc.* .............. 3,450 24,150
International Speedway
Corp.--Class A ..... 520 22,823
Department 56, Inc.* . 1,730 21,971
JAKKS Pacific, Inc.* . 1,680 20,479
Applica, Inc. ........ 3,330 20,146
Extended Stay America,
Inc.* .............. 1,250 18,662
Coach, Inc.* ......... 330 18,018
K-Swiss, Inc.--Class A 490 17,635
K2, Inc.* ............ 1,150 17,077
Fleetwood Enterprises,
Inc.* .............. 1,770 16,408
Bally Total Fitness Holding
Corp.* ............. 1,868 16,158
Cheesecake Factory,
Inc.*+ ............. 440 15,915
Haggar Corp. ......... 990 15,296
Arctic Cat, Inc. ..... 700 13,531
Ryland Group, Inc. ... 160 11,698
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 23
LEISURE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------
Jack in the Box, Inc.* ............................... 520 $ 9,256
Liz Claiborne, Inc. .................................. 250 8,513
Timberland Co.--Class A* ............................. 160 6,826
Brown Shoe Co., Inc. ................................. 160 5,072
Steak n Shake Co.* ................................... 330 4,917
WMS Industries, Inc.* ................................ 200 4,532
CEC Entertainment, Inc.* ............................. 110 4,312
Champion Enterprises, Inc.* .......................... 660 4,191
Unifi, Inc.* ......................................... 740 3,552
----------
TOTAL COMMON STOCKS
(Cost $3,669,799) .................................. 4,661,120
----------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $3,786 3,786
0.94% due 10/01/03 ................................. 269 269
0.93% due 10/01/03 ................................. 3,786 3,786
0.91% due 10/01/03 ................................. 3,786 3,786
0.90% due 10/01/03 ................................. 5,344 5,344
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $16,971) ..................................... 16,971
----------
TOTAL INVESTMENTS 100%
(Cost $3,686,770) .................................. $4,678,091
----------
----------
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
24
PRECIOUS METALS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 100.0%
AngloGold Ltd.--
SP ADR+ ............ 575,487 $ 21,695,860
Newmont Mining
Corp.+ ............. 520,118 20,331,413
Barrick Gold
Corp.+ ............1,065,362 20,060,766
Gold Fields Ltd.--
SP ADR+ ...........1,009,351 14,302,504
Freeport-McMoRan
Copper & Gold,
Inc.--Class B+ ..... 404,619 13,392,889
Placer Dome, Inc. .... 683,222 9,394,302
Harmony Gold Mining
Co. Ltd.--
SP ADR+ ............ 601,223 8,711,721
Goldcorp, Inc.+ ...... 619,861 8,653,260
Agnico-Eagle Mines
Ltd.+ .............. 616,750 7,623,030
Apex Silver Mines
Ltd.* .............. 559,480 7,497,032
Meridian Gold,
Inc.* .............. 582,728 6,835,399
Royal Gold, Inc.+ .... 249,407 4,564,148
Glamis Gold Ltd.* .... 324,255 4,280,166
Kinross Gold
Corp.*+ ............ 571,723 4,265,054
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Durban Roodepoort
Deep Ltd.--
SP ADR*+ ..........1,077,584 $ 3,038,787
Ashanti Goldfields
Co. Ltd.* .......... 286,076 2,989,494
Coeur D'alene Mines
Corp.* ............. 918,464 2,856,423
Cia de Minas
Buenaventura SA--
SP ADR ............. 68,436 2,708,697
Hecla Mining Co.* .... 406,773 2,131,491
Pan American Silver
Corp.*+ ............ 213,316 2,054,233
Bema Gold
Corp.*+ ............ 775,242 1,976,867
Golden Star Resources
Ltd.*+ ............. 437,650 1,825,000
BHP Billiton Ltd.--
SP ADR ............. 86,950 1,232,951
Anglo American
PLC--ADR ........... 51,248 930,151
------------
TOTAL COMMON STOCKS
(Cost $126,872,715) 173,351,638
------------
TOTAL INVESTMENTS 100%
(Cost $126,872,715) $173,351,638
------------
------------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 25
RETAILING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 97.8%
Wal-Mart Stores, Inc.+ 23,488 $ 1,311,805
Home Depot, Inc. ..... 26,338 838,865
Lowe's Cos., Inc.+ ... 15,794 819,709
Target Corp. ......... 15,353 577,733
Gap, Inc.+ ........... 28,370 485,694
Sears Roebuck and Co.+ 10,257 448,539
Amazon.com, Inc.*+ ... 9,170 443,461
Cardinal Health, Inc. 7,580 442,596
CVS Corp.+ ........... 12,535 389,337
Best Buy Co., Inc.* .. 7,799 370,608
Costco Wholesale Corp.* 11,575 359,751
Chico's FAS, Inc.*+ .. 11,560 354,198
Walgreen Co. ......... 11,251 344,731
Neiman-Marcus Group,
Inc.--Class A* ..... 7,650 319,005
Tiffany & Co.+ ....... 8,340 311,332
Limited Brands, Inc. . 18,970 286,068
Ross Stores, Inc. .... 6,123 283,862
McKesson Corp.+ ...... 8,260 274,975
Bed Bath & Beyond,
Inc.*+ ............. 6,840 261,151
Dollar General Corp. . 13,010 260,200
AutoNation, Inc.*+ ... 14,360 251,874
RadioShack Corp. ..... 8,716 247,622
JC Penney Holding Co.,
Inc.+ .............. 11,580 247,465
Staples, Inc.*+ ...... 10,310 244,862
Kohl's Corp.*+ ....... 4,529 242,301
AutoZone, Inc.*+ ..... 2,650 237,255
Cato Corp.--Class A .. 11,000 221,870
Dollar Tree Stores,
Inc.* .............. 6,521 218,454
O'Reilly Automotive,
Inc.*+ ............. 5,900 216,943
Claire's Stores, Inc. 6,260 209,460
Petsmart, Inc.* ...... 9,187 208,545
99 Cents Only Stores* 6,400 206,976
Building Material Holding
Corp. .............. 15,492 202,945
Abercrombie & Fitch
Co.--Class A* ...... 7,200 199,512
AmerisourceBergen Corp. 3,680 198,904
Federated Department .
Stores, Inc. ....... 4,680 196,092
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Family Dollar Stores,
Inc. ............... 4,795 $ 191,273
Sysco Corp.+ ......... 5,800 189,718
Office Depot, Inc.* .. 13,395 188,200
Sherwin-Williams Co. . 6,200 182,342
Tractor Supply Co.* .. 5,400 177,174
Casey's General Stores,
Inc. ............... 12,086 169,567
Coach, Inc.* ......... 3,010 164,346
CarMax, Inc.* ........ 4,900 160,034
Circuit City Stores,
Inc. ............... 16,500 157,245
Insight Enterprises,
Inc.* .............. 9,900 150,678
Foot Locker, Inc. .... 9,120 147,744
Movie Gallery, Inc.* . 7,300 143,445
Advance Auto Parts,
Inc.* .............. 1,871 132,654
Pacific Sunwear of
California, Inc.* .. 6,418 132,596
May Department Stores
Co. ................ 5,335 131,401
TJX Cos., Inc. ....... 6,594 128,055
AnnTaylor Stores Corp.*+ 3,901 125,378
Men's Wearhouse, Inc.* 4,700 120,555
Rite Aid Corp.*+ ..... 22,910 118,216
eBay, Inc.* .......... 2,100 112,371
OfficeMax, Inc.* ..... 11,840 110,941
BJ's Wholesale Club,
Inc.* .............. 5,109 98,961
Charming Shoppes, Inc.* 16,775 95,785
Priority Healthcare
Corp.--Class B* .... 4,450 91,403
Michaels Stores, Inc. 2,230 90,895
CDW Corp.+ ........... 1,510 87,187
Talbots, Inc. ........ 2,480 86,428
Saks, Inc.* .......... 7,100 81,863
Regis Corp. .......... 2,500 80,250
Performance Food Group
Co.*+ .............. 1,900 77,349
Nordstrom, Inc. ...... 2,920 72,445
Whole Foods Market,
Inc.* .............. 1,300 71,734
American Eagle Outfitters,
Inc.*+ ............. 4,110 61,075
Trans World Entertainment
Corp.* ............. 10,221 57,749
Childrens Place Retail
Stores, Inc.* ...... 3,200 54,880
Guitar Center, Inc.* . 1,700 54,672
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
26
RETAILING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------------------
Zale Corp.* .......................................... 1,100 $ 48,851
Burlington Coat Factory Warehouse Corp. .............. 2,542 47,535
Pier 1 Imports, Inc. ................................. 2,400 46,176
Hollywood Entertainment Corp.* ....................... 2,666 45,322
Urban Outfitters, Inc.* .............................. 1,500 39,090
Group 1 Automotive, Inc.* ............................ 1,000 34,540
Kroger Co.* .......................................... 1,900 33,953
Dillard's/AR, Inc.--Class A .......................... 2,400 33,552
Nash Finch Co. ....................................... 2,100 32,550
Toys "R" Us, Inc.* .................................. 2,325 27,970
Aaron Rents, Inc. .................................... 1,100 23,045
J. Jill Group, Inc.* ................................. 1,450 16,675
Footstar, Inc.* ...................................... 1,700 11,492
-----------
TOTAL COMMON STOCKS
(Cost $12,318,496) ................................. 17,472,060
-----------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 2.2%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $ 86,431 86,431
0.94% due 10/01/03 ................................. 6,153 6,153
0.93% due 10/01/03 ................................. 86,431 86,431
0.91% due 10/01/03 ................................. 86,431 86,431
0.90% due 10/01/03 ................................. 122,020 122,020
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $387,466) .................................... 387,466
-----------
TOTAL INVESTMENTS 100%
(Cost $12,705,962) ................................. $17,859,526
-----------
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 27
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 98.3%
Intel Corp. .......... 53,197 $ 1,463,449
Microsoft Corp. ...... 40,318 1,120,437
Cisco Systems, Inc.*+ 54,974 1,074,192
Texas Instruments, Inc. 45,227 1,031,176
International Business
Machines Corp. ..... 10,615 937,623
Hewlett-Packard Co. .. 46,656 903,260
QUALCOMM, Inc.+. ..... 18,935 788,453
Intuit, Inc.*+ ....... 15,800 762,192
Maxim Integrated
Products, Inc.+ .... 17,351 685,364
Analog Devices, Inc.*+ 17,784 676,148
Xilinx, Inc.*+ ....... 22,890 652,594
Tellabs, Inc.* ....... 88,400 600,236
Linear Technology Corp. 16,196 579,979
Diebold, Inc. ........ 10,976 555,934
Microchip Technology,
Inc.+ .............. 23,108 553,206
Convergys Corp.* ..... 30,000 550,200
Dell, Inc.* .......... 16,021 534,941
Advanced Fibre
Communications,
Inc.* .............. 25,500 534,735
Symantec Corp.*+ ..... 8,400 529,368
Electronic Arts, Inc.*+ 5,736 529,031
Sybase, Inc.* ........ 30,200 513,702
EMC Corp./MA*+ ....... 39,316 496,561
Oracle Corp.* ........ 43,877 492,300
Altera Corp.* ........ 25,636 484,520
Acxiom Corp.* ........ 29,600 466,496
Applied Materials,
Inc.*+ ............. 25,305 459,033
Automatic Data
Processing, Inc. ... 12,400 444,540
Xerox Corp.*+ ........ 43,248 443,724
Check Point Software
Technologies Ltd.* . 25,400 426,720
PC-Tel, Inc.* ........ 38,125 406,794
National Semiconductor
Corp.*+ ............ 12,528 404,529
United Microelectronics
Corp.--SP ADR*+ .... 89,278 402,644
Concord EFS, Inc.* ... 29,400 401,898
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Netease.com, Inc.--
SP ADR*+ ........... 7,100 $ 396,322
Infineon Technologies
AG--SP ADR* ........ 30,200 389,278
KLA-Tencor Corp.* .... 7,544 387,762
BMC Software, Inc.* .. 26,800 373,324
Yahoo!, Inc.*+ ....... 10,394 367,740
Corning, Inc.*+ ...... 37,641 354,578
NCR Corp.*+ .......... 10,926 346,245
Sun Microsystems,
Inc.* .............. 104,500 345,895
Intermagnetics General
Corp.* ............. 14,125 315,835
Overture Services,
Inc.* .............. 11,700 309,933
Compuware Corp.* ..... 57,342 307,353
BearingPoint, Inc.* .. 38,100 304,038
SanDisk Corp.*+ ...... 4,723 301,044
Sanmina-SCI Corp.* ... 30,945 300,166
Electronic Data Systems
Corp.+ ............. 14,857 300,111
STMicroelectronics NV 12,400 298,220
Computer Associates
International, Inc.+ 10,944 285,748
QLogic Corp.*+ ....... 5,998 281,966
Lexmark International,
Inc.* .............. 4,463 281,214
Hitachi Ltd.--SP AD .. 5,064 277,963
Veritas Software Corp.*+ 8,708 273,431
MAXIMUS, Inc.* ....... 7,900 272,155
Lucent Technologies,
Inc.*+ ............. 125,437 270,944
Scientific-Atlanta, Inc. 8,612 268,264
Cabot Microelectronics
Corp.*+ ............ 4,800 267,552
Black Box Corp.+ ..... 6,700 266,727
MPS Group, Inc.* ..... 29,600 266,400
Ingram Micro, Inc.--
Class A* ........... 19,900 259,695
Lam Research Corp.*+ . 11,541 255,633
Cognex Corp. ......... 9,651 253,725
Molex, Inc. .......... 8,807 251,792
PerkinElmer, Inc. .... 16,160 247,410
Photronics, Inc.*+ ... 11,574 246,063
Rudolph Technologies,
Inc.* .............. 12,524 241,838
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
28
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
eFunds Corp.* ........ 19,221 $ 237,379
Canon, Inc.--SP ADR+ . 4,800 233,856
SunGard Data Systems,
Inc.* .............. 8,757 230,397
Avaya, Inc.* ......... 20,802 226,742
Atmel Corp.* ......... 56,227 225,470
Teradyne, Inc.*+ ..... 11,999 223,181
Harris Corp. ......... 6,217 222,506
Storage Technology
Corp.*+ ............ 9,200 222,088
Western Digital
Corp.* ............. 16,200 208,818
Taiwan Semiconductor
Manufacturing Co.
Ltd.--SP ADR*+ ..... 18,536 200,745
Analogic Corp. ....... 4,160 199,680
Midway Games, Inc.*+ . 66,965 198,216
CSG Systems
International, Inc.* 13,300 196,441
Lattice Semiconductor
Corp.* ............. 27,602 196,250
Power Integrations,
Inc.* .............. 5,900 196,116
Network Appliance, Inc.* 9,534 195,733
Varian, Inc.* ........ 6,248 195,687
Avnet, Inc.*+ ........ 11,500 189,980
Computer Sciences
Corp.*+ ............ 5,056 189,954
CommScope, Inc.* ..... 15,727 189,668
Cypress Semiconductor
Corp.*+ ............ 10,487 185,410
Adobe Systems, Inc. .. 4,712 184,993
Satyam Computer
Services Ltd.--
SP ADR+ ............ 13,900 179,310
Integrated Device
Technology, Inc.* .. 14,383 178,637
ATMI, Inc.* .......... 7,011 177,168
Take-Two Interactive
Software, Inc.*+ ... 5,115 174,780
Avid Technology, Inc.*+ 3,300 174,372
Microsemi Corp.* ..... 11,416 173,980
ANSYS, Inc.* ......... 4,894 173,933
Anixter International,
Inc.* .............. 7,600 173,052
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Network Equipment
Technologies, Inc.* 18,646 $ 170,611
International Rectifier
Corp.*+ ............ 4,500 168,480
Methode Electronics,
Inc.--Class A ...... 14,200 167,702
Websense, Inc.* ...... 7,699 163,758
Waters Corp.* ........ 5,962 163,538
Planar Systems, Inc.* 7,500 160,875
Polycom, Inc.*+ ...... 9,572 158,991
Exar Corp.* .......... 11,037 155,953
Actel Corp.*+ ........ 6,500 155,805
Technitrol, Inc.* .... 8,297 152,748
Progress Software
Corp.*+ ............ 7,100 152,650
Foundry Networks, Inc.*+ 7,021 151,022
Symbol Technologies,
Inc. ............... 11,842 141,512
First Data Corp.+ .... 3,500 139,860
LSI Logic Corp.*+ .... 14,804 133,088
Andrew Corp.*+ ....... 10,800 132,732
Citrix Systems, Inc.* 5,940 131,155
Legato Systems, Inc.* 11,483 128,724
DSP Group, Inc.* ..... 5,000 124,550
Juniper Networks, Inc.*+ 8,202 122,374
Rambus, Inc.* ........ 7,200 120,816
Echelon Corp.*+ ...... 9,889 117,679
Siebel Systems, Inc.* 12,087 117,486
Skyworks Solutions,
Inc.*+ ............. 12,848 116,917
Silicon Laboratories,
Inc.* .............. 2,600 116,870
webMethods, Inc.* .... 14,537 116,005
NVIDIA Corp.*+ ....... 7,106 113,064
Reynolds & Reynolds
Co.--Class A ....... 4,000 110,200
Cree, Inc.*+ ......... 5,911 109,472
Semtech Corp.*+ ...... 5,897 108,859
Synopsys, Inc.* ...... 3,500 107,695
Itron, Inc.* ......... 5,200 104,364
NetScreen Technologies,
Inc.*+ ............. 4,514 100,346
Gartner, Inc.--
Class B* ........... 9,100 99,099
Applied Micro Circuits
Corp.* ............. 20,133 98,048
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 29
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------------------
Macromedia, Inc.* .................................... 3,850 $ 95,249
SPSS, Inc.* .......................................... 5,386 90,862
3Com Corp.* .......................................... 14,900 87,910
Jabil Circuit, Inc.* ................................. 3,130 81,536
Transaction Systems Architects, Inc.--Class A* ....... 4,900 81,389
JDA Software Group, Inc.* ............................ 5,239 77,904
Fidelity National Information Solutions, Inc.* ....... 3,100 77,035
Kronos, Inc./MA* ..................................... 1,392 73,651
Mercury Interactive Corp.*+ .......................... 1,621 73,610
Affiliated Computer Services, Inc.--Class A*+ ........ 1,460 71,087
Sohu.com, Inc.*+ ..................................... 2,200 68,420
Mentor Graphics Corp.*+ .............................. 3,400 59,602
Digi International, Inc.* ............................ 8,845 58,545
SAP AG--SP ADR+ ...................................... 1,900 57,779
Novellus Systems, Inc.* .............................. 1,711 57,746
Motorola, Inc. ....................................... 4,114 49,245
Informatica Corp.* ................................... 6,596 49,140
Intersil Corp.--Class A* ............................. 1,824 43,411
-----------
TOTAL COMMON STOCKS
(Cost $35,342,856) ................................. 42,914,054
-----------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 1.7%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $161,012 161,012
0.94% due 10/01/03 ................................. 11,462 11,462
0.93% due 10/01/03 ................................. 161,012 161,012
0.91% due 10/01/03 ................................. 161,012 161,012
0.90% due 10/01/03 ................................. 227,312 227,312
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $721,810) .................................... 721,810
-----------
TOTAL INVESTMENTS 100%
(Cost $36,064,666) ................................. $43,635,864
-----------
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
30
TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 98.8%
Vodafone Group PLC--
SP ADR+ ............ 38,173 $ 773,003
Cisco Systems, Inc.* . 32,600 637,004
QUALCOMM, Inc.+ ...... 10,581 440,593
Verizon Communications,
Inc. ............... 12,408 402,516
Nokia OYJ--SP ADR+ ... 25,064 390,998
SBC Communications, ..
Inc. ............... 16,380 364,455
AT&T Wireless Services,
Inc.*+ ............. 40,230 329,081
Sprint Corp.-FON
Group+ ............. 20,394 307,949
Telefonaktiebolaget
LM Ericsson--
SP ADR*+ ........... 19,711 289,358
ALLTEL Corp.+ ........ 5,912 273,962
AT&T Corp. ........... 12,566 270,797
BellSouth Corp.+ ..... 11,408 270,141
Motorola, Inc.+ ...... 21,409 256,266
Nextel Communications,
Inc.--Class A*+ .... 12,141 239,056
Corning, Inc.*+ ...... 24,156 227,550
Alcatel SA--SP ADR* .. 16,535 195,609
Tellabs, Inc.* ....... 27,847 189,081
Telephone & Data Systems,
Inc. ............... 3,000 169,620
Advanced Fibre
Communications, Inc.* 7,900 165,663
McData Corp.--Class A* 13,700 163,989
CommScope, Inc.* ..... 13,085 157,805
3Com Corp.* .......... 24,300 143,370
Adaptec, Inc.* ....... 18,600 140,616
Comverse Technology,
Inc.* .............. 8,600 128,656
CIENA Corp.*+ ........ 21,700 128,247
Citizens Communications
Co.* ............... 11,200 125,552
Scientific-Atlanta, Inc. 3,902 121,547
Cable Design Technologies
Corp.* ............. 14,900 119,200
PC-Tel, Inc.* ........ 10,719 114,372
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Sycamore Networks,
Inc.* .............. 20,900 $ 102,410
Sprint Corp.--PCS
Group*+ ............ 16,556 94,866
Deutsche Telekom AG--
SP ADR*+ ........... 6,200 89,528
Audiovox Corp.--Class A* 6,151 77,687
Avaya, Inc.* ......... 6,900 75,210
ViaSat, Inc.* ........ 4,200 74,802
ADTRAN, Inc.+ ........ 1,200 73,416
Lucent Technologies,
Inc.*+ ............. 33,074 71,440
Andrew Corp.*+ ....... 5,809 71,393
Metro One
Telecommunications,
Inc.* .............. 19,627 68,302
CenturyTel, Inc.+ .... 1,910 64,730
Network Equipment
Technologies, Inc.* 7,021 64,242
General Communication,
Inc.--Class A* ..... 7,300 60,736
Qwest Communications
International, Inc.* 15,550 52,870
Polycom, Inc.*+ ...... 2,293 38,087
JDS Uniphase Corp.* .. 10,518 37,865
Digi International,
Inc.* .............. 5,523 36,557
KT Corp.--SP ADR ..... 1,600 31,888
Concerto Software, Inc.* 3,300 28,050
Black Box Corp. ...... 700 27,867
Crown Castle International
Corp.* ............. 2,900 27,289
Bel Fuse, Inc.--Class B 1,000 26,420
Foundry Networks, Inc.* 1,200 25,812
Juniper Networks, Inc.* 1,600 23,872
Brooktrout, Inc.* .... 1,700 13,090
Harris Corp. ......... 323 11,560
WilTel Communications
Group, Inc.* ....... 600 9,588
Golden Telecom, Inc.* 300 8,202
Boston Communications
Group, Inc.* ....... 700 6,980
----------
TOTAL COMMON STOCKS
(Cost $6,476,814) .. 8,930,815
----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 31
TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.2%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $24,890 $ 24,890
0.94% due 10/01/03 ................................. 1,772 1,772
0.93% due 10/01/03 ................................. 24,890 24,890
0.91% due 10/01/03 ................................. 24,890 24,890
0.90% due 10/01/03 ................................. 35,137 35,137
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $111,579) .................................... 111,579
----------
TOTAL INVESTMENTS 100%
(Cost $6,588,393) .................................. $9,042,394
----------
----------
See Notes to Financial Statements.
32
TRANSPORTATION FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 99.4%
United Parcel Service,
Inc.--Class B+ ..... 21,310 $ 1,359,578
Union Pacific Corp. .. 13,144 764,586
FedEx Corp. .......... 10,520 677,804
Burlington Northern
Santa Fe Corp. ..... 23,408 675,789
JB Hunt Transport
Services, Inc.*+ ... 21,870 569,057
Norfolk Southern Corp. 30,023 555,426
Southwest Airlines Co.+ 30,985 548,435
CH Robinson
Worldwide, Inc. .... 11,219 417,459
CNF, Inc. ............ 11,064 354,601
Ryder System, Inc. ... 11,931 349,817
CSX Corp.+ ........... 11,477 335,702
Yellow Corp.*+ ....... 9,740 291,031
EGL, Inc.* ........... 15,401 279,990
USF Corp. ............ 8,690 273,474
Alaska Air Group,
Inc.*+ ............. 9,770 271,801
Arkansas Best Corp. .. 9,406 258,665
Roadway Corp. ........ 5,002 243,948
Expeditors International
Washington, Inc. ... 6,806 234,194
Alexander & Baldwin,
Inc. ............... 8,147 228,768
Swift Transportation Co.,
Inc.*+ ............. 6,762 153,430
Frontier Airlines,
Inc.*+ ............. 9,040 148,798
Mesa Air Group, Inc.*+ 12,280 136,308
Werner Enterprises, Inc. 5,310 121,652
Delta Air Lines, Inc. 7,963 105,908
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
ExpressJet Holdings,
Inc.*+ ............. 7,531 $ 103,928
Pacer International,
Inc.* .............. 5,100 101,643
Heartland Express, Inc. 4,163 99,995
SkyWest, Inc. ........ 4,656 80,642
Knight Transportation,
Inc.* .............. 2,937 73,631
Landstar System, Inc.* 1,090 66,512
Genesee & Wyoming,
Inc.--Class A* ..... 2,580 61,172
AirTran Holdings, Inc.* 3,470 58,123
Forward Air Corp.* ... 1,653 45,705
Kirby Corp.* ......... 1,571 45,088
Kansas City Southern* 3,974 43,992
Old Dominion Freight
Line, Inc.* ........ 200 5,818
-----------
TOTAL COMMON STOCKS
(Cost $9,215,138) .. 10,142,470
-----------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 . $14,480 14,480
0.94% due 10/01/03 . 1,031 1,031
0.93% due 10/01/03 . 14,480 14,480
0.91% due 10/01/03 . 14,480 14,480
0.90% due 10/01/03 . 20,443 20,443
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $64,914) ..... 64,914
-----------
TOTAL INVESTMENTS 100%
(Cost $9,280,052) .. $10,207,384
-----------
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 33
UTILITIES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
COMMON STOCKS 98.6%
Southern Co.+ ........ 54,370 $ 1,594,128
Duke Energy Corp.+ ... 77,357 1,377,728
Dominion Resources,
Inc. /VA+ .......... 21,945 1,358,395
Exelon Corp. ......... 19,477 1,236,789
Progress Energy, Inc.+ 27,709 1,231,942
FPL Group, Inc.+ ..... 19,467 1,230,314
PG&E Corp.*+ ......... 50,707 1,211,897
Public Service Enterprise
Group, Inc. ........ 27,567 1,157,814
American Electric Power
Co., Inc.+ ......... 36,662 1,099,860
PPL Corp.+ ........... 24,370 997,952
Kinder Morgan, Inc. .. 18,409 994,281
Williams Cos., Inc.+ . 101,068 952,061
Entergy Corp. ........ 16,727 905,767
Wisconsin Energy Corp. 26,481 809,524
SCANA Corp.+ ......... 23,596 808,163
Constellation Energy
Group, Inc. ........ 21,487 768,805
TXU Corp.+ ........... 32,408 763,532
Sempra Energy ........ 24,951 732,561
Cinergy Corp. ........ 19,617 719,944
NSTAR+ ............... 14,893 707,418
Consolidated Edison,
Inc.+ .............. 17,062 695,447
DPL, Inc. ............ 40,479 694,215
MDU Resources Group,
Inc. ................. 20,544 693,976
Alliant Energy Corp.+ 30,910 680,020
Great Plains Energy,
Inc.+ .............. 22,238 674,256
FirstEnergy Corp. .... 20,708 660,585
Edison International*+ 33,320 636,412
OGE Energy Corp.+ .... 27,996 632,430
AGL Resources, Inc. .. 22,388 630,670
Ameren Corp.+ ........ 14,025 601,813
Philadelphia Suburban
Corp. ................ 24,680 594,294
AES Corp.*+ .......... 79,904 592,888
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
Westar Energy, Inc.+ . 31,834 $ 587,337
Energy East Corp. .... 25,576 573,670
Nicor, Inc.+ ......... 16,314 573,274
Peoples Energy Corp.+ 13,852 573,196
Xcel Energy, Inc.+ ... 37,013 572,591
Pinnacle West Capital
Corp. .............. 15,998 567,929
WGL Holdings, Inc. ... 20,554 566,879
Aquila, Inc.*+ ....... 166,534 562,885
DTE Energy Co.+ ...... 15,074 556,080
PNM Resources, Inc. .. 19,016 533,209
NiSource, Inc.+ ...... 26,188 523,236
KeySpan Corp. ........ 14,783 518,588
Black Hills Corp. .... 16,000 493,760
EL Paso Corp.+ ....... 59,355 433,292
WPS Resources Corp. .. 10,498 432,518
Northeast Utilities .. 23,466 420,511
Allegheny Energy, Inc.* 42,006 383,935
Questar Corp. ........ 11,544 355,671
CenterPoint Energy,
Inc. ............... 36,676 336,319
Pepco Holdings, Inc. . 17,986 310,798
Puget Energy, Inc. ... 13,700 307,291
Equitable Resources,
Inc. ............... 7,022 288,604
TECO Energy, Inc.+ ... 20,875 288,493
Calpine Corp.*+ ...... 55,557 271,674
National Fuel Gas Co. 8,963 204,805
ONEOK, Inc. .......... 9,744 196,536
Hawaiian Electric
Industries, Inc. ... 4,400 191,532
Duquesne Light Holdings,
Inc. ............... 11,700 180,648
Vectren Corp. ........ 7,634 180,315
Dynegy, Inc.--Class A*+ 45,684 164,462
CMS Energy Corp. ..... 16,614 122,445
IDACORP, Inc. ........ 3,800 96,900
Sierra Pacific Resources
Corp.*+ ............ 4,434 21,505
-----------
TOTAL COMMON STOCKS
(Cost $37,691,979) . 40,836,769
-----------
* NON-INCOME PRODUCING SECURITIES
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE
NOTE 8.
See Notes to Financial Statements.
34
UTILITIES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.4%
Repurchase Agreement (Note 4)
0.96% due 10/01/03 ................................. $129,114 $ 129,114
0.94% due 10/01/03 ................................. 9,192 9,192
0.93% due 10/01/03 ................................. 129,114 129,114
0.91% due 10/01/03 ................................. 129,114 129,114
0.90% due 10/01/03 ................................. 182,279 182,279
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $578,813) .................................... 578,813
-----------
TOTAL INVESTMENTS 100%
(Cost $38,270,792) ................................. $41,415,582
-----------
-----------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 35
- --------------------------------------------------------------------------------
This page intentionally left blank.
36 & 37 SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
BASIC BIOTECH- CONSUMER
BANKING MATERIALS NOLOGY PRODUCTS ELECTRONICS
FUND FUND FUND FUND FUND
------- --------- ----------- -------- -----------
ASSETS
Securities at Value (Notes 1 and 4)* . $ 9,151,872 $ 7,288,511 $178,058,883 $19,300,508 $ 47,900,288
Collateral for Securities Loaned
(Note 8) ........................... 1,086,523 2,696,991 71,262,898 2,148,000 21,097,893
Receivable for Securities Sold (Note 1) 176,495 7,043,716 11,188,941 -- 31,848,552
Receivable for Shares Purchased ...... 144,316 880,230 304,403 193,744 590,712
Investment Income Receivable (Note 1) 21,605 22,256 -- 24,735 313
Other Assets ......................... -- 601 1,409,557 -- --
------------ ----------- ------------ ----------- ------------
TOTAL ASSETS ....................... 10,580,811 17,932,305 262,224,682 21,666,987 101,437,758
------------ ----------- ------------ ----------- ------------
LIABILITIES
Payable upon Return of Securities
Loaned (Note 8) .................... 1,086,523 2,696,991 71,262,898 2,148,000 21,097,893
Payable for Securities Purchased (Note 1) -- -- -- -- 315,473
Liability for Shares Redeemed ........ 263,565 8,031,020 9,087,580 162,796 32,475,852
Investment Advisory Fee Payable (Note 2) 7,044 14,577 133,388 9,568 64,759
Transfer Agent Fee Payable (Note 2) .. 2,072 4,287 39,232 2,814 19,047
Distribution and Service Fee Payable (Note 2) 300 651 3,131 1,078 2,344
Portfolio Accounting Fee Payable (Note 2) 829 1,715 15,687 1,126 7,619
Custody Fees Payable ................. 279 584 5,618 371 2,514
Cash Payable to Custodian Bank ....... -- -- 1,273,723 -- --
Other Liabilities .................... 1,109 2,354 20,927 1,518 10,197
------------ ----------- ------------ ----------- ------------
TOTAL LIABILITIES .................. 1,361,721 10,752,179 81,842,184 2,327,271 53,995,698
------------ ----------- ------------ ----------- ------------
NET ASSETS (NOTE 7) .................. $ 9,219,090 $ 7,180,126 $180,382,498 $19,339,716 $ 47,442,060
------------ ----------- ------------ ----------- ------------
------------ ----------- ------------ ----------- ------------
INVESTOR CLASS:
Net Assets ........................... $8,299,026 $5,836,333 $156,234,566 $2,061,764 $37,761,144
Shares Outstanding ................... 943,872 279,347 8,331,055 83,244 3,159,338
Net Asset Value Per Share ............ $8.79 $20.89 $18.75 $24.77 $11.95
ADVISOR CLASS:
Net Assets ........................... $717,140 $784,551 $22,058,213 $17,004,731 $8,605,944
Shares Outstanding ................... 84,587 38,374 1,214,120 701,487 741,340
Net Asset Value Per Share ............ $8.48 $20.45 $18.17 $24.24 $11.61
C CLASS:
Net Assets ........................... $202,924 $559,242 $2,089,719 $273,221 $1,074,972
Shares Outstanding ................... 23,840 27,457 114,400 11,272 92,378
Net Asset Value Per Share ............ $8.51 $20.37 $18.27 $24.24 $11.64
ENERGY FINANCIAL HEALTH
ENERGY SERVICES SERVICES CARE
FUND FUND FUND FUND
------ ---------- ----------- -----------
ASSETS
Securities at Value (Notes 1 and 4)* . $16,809,673 $18,323,239 $31,495,098 $29,015,470
Collateral for Securities Loaned
(Note 8) ........................... 2,401,818 3,781,502 4,611,859 4,118,652
Receivable for Securities Sold (Note 1) -- -- 2,241,810 5,407,285
Receivable for Shares Purchased ...... 625,740 748,748 43,754 223,887
Investment Income Receivable (Note 1) 8,904 8,141 63,067 13,506
Other Assets ......................... -- -- -- --
----------- ----------- ----------- -----------
TOTAL ASSETS ....................... 19,846,135 22,861,630 38,455,588 38,778,800
----------- ----------- ----------- -----------
LIABILITIES
Payable upon Return of Securities
Loaned (Note 8) .................... 2,401,818 3,781,502 4,611,859 4,118,652
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Shares Redeemed ........ 353,524 164,514 2,067,887 5,365,787
Investment Advisory Fee Payable (Note 2) 11,050 31,444 24,424 27,209
Transfer Agent Fee Payable (Note 2) .. 3,250 9,248 7,183 8,003
Distribution and Service Fee Payable (Note 2) 552 733 2,214 2,401
Portfolio Accounting Fee Payable (Note 2) 1,300 3,699 2,873 3,201
Custody Fees Payable ................. 515 3,747 966 1,056
Cash Payable to Custodian Bank ....... -- 895 -- --
Other Liabilities .................... 1,749 5,001 3,802 4,280
----------- ----------- ----------- -----------
TOTAL LIABILITIES .................. 2,773,758 4,000,783 6,721,208 9,530,589
----------- ----------- ----------- -----------
NET ASSETS (NOTE 7) .................. $17,072,377 $18,860,847 $31,734,380 $29,248,211
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
INVESTOR CLASS:
Net Assets ........................... $14,346,680 $16,316,371 $11,716,893 $10,733,490
Shares Outstanding ................... 1,480,571 919,390 1,246,261 960,024
Net Asset Value Per Share ............ $9.69 $17.75 $9.40 $11.18
ADVISOR CLASS:
Net Assets ........................... $1,366,166 $1,135,105 $19,235,742 $17,174,479
Shares Outstanding ................... 143,971 65,511 2,076,830 1,579,836
Net Asset Value Per Share ............ $9.49 $17.33 $9.26 $10.87
C CLASS:
Net Assets ........................... $1,359,531 $1,409,371 $781,745 $1,340,242
Shares Outstanding ................... 143,648 81,309 84,739 122,908
Net Asset Value Per Share ............ $9.46 $17.33 $9.23 $10.90
*THE COST OF SECURITIES AT VALUE IS $7,755,449, $6,388,946, $136,780,144,
$17,822,121, $31,301,581, $15,986,165, $15,059,128, $26,926,901, AND
$23,696,303, RESPECTIVELY.
See Notes to Financial Statements.
38 & 39 SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
PRECIOUS
INTERNET LEISURE METALS RETAILING TECHNOLOGY
FUND FUND FUND FUND FUND
-------- ------- -------- --------- ----------
ASSETS
Securities at Value (Notes 1 and 4)* ........... $14,686,808 $4,678,091 $173,351,638 $17,859,526 $43,635,864
Collateral for Securities Loaned (Note 8) ...... 6,590,067 477,949 76,910,089 3,769,069 13,389,957
Receivable for Securities Sold (Note 1) ........ 1,409,601 1,077,960 21,276,970 3,616,226 20,716,873
Receivable for Shares Purchased ................ 535,627 11,860 4,163,895 26,121 134,832
Investment Income Receivable (Note 1) .......... 5 3,056 8,703 17,467 11,192
----------- ---------- ------------ ----------- -----------
TOTAL ASSETS ................................. 23,222,108 6,248,916 275,711,295 25,288,409 77,888,718
----------- ---------- ------------ ----------- -----------
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 6,590,067 477,949 76,910,089 3,769,069 13,389,957
Payable for Securities Purchased (Note 1) ...... -- -- -- -- --
Liability for Shares Redeemed .................. 1,692,307 1,045,917 7,690,668 3,970,862 20,717,618
Investment Advisory Fee Payable (Note 2) ....... 12,239 6,404 160,736 32,394 49,612
Transfer Agent Fee Payable (Note 2) ............ 3,600 1,884 53,579 9,528 14,592
Distribution and Service Fee Payable (Note 2) .. 800 451 1,698 1,855 3,465
Portfolio Accounting Fee Payable (Note 2) ...... 1,440 753 20,976 3,811 5,837
Custody Fees Payable ........................... 475 249 7,166 1,268 1,926
Cash Payable to Custodian Bank ................. -- -- 15,994,758 -- --
Other Liabilities .............................. 1,871 983 28,924 5,066 11,027
----------- ---------- ------------ ----------- -----------
TOTAL LIABILITIES ............................ 8,302,799 1,534,590 100,868,594 7,793,853 34,194,034
----------- ---------- ------------ ----------- -----------
NET ASSETS (NOTE 7) ............................ $14,919,309 $4,714,326 $174,842,701 $17,494,556 $43,694,684
----------- ---------- ------------ ----------- -----------
----------- ---------- ------------ ----------- -----------
INVESTOR CLASS:
Net Assets ..................................... $9,901,251 $4,081,657 $162,023,850 $7,156,168 $18,165,683
Shares Outstanding ............................. 347,797 183,637 4,582,089 697,700 1,800,492
Net Asset Value Per Share ...................... $28.47 $22.23 $35.36 $10.26 $10.09
ADVISOR CLASS:
Net Assets ..................................... $4,573,747 $483,693 $4,811,304 $9,979,003 $24,385,042
Shares Outstanding ............................. 163,968 22,472 136,179 993,973 2,471,722
Net Asset Value Per Share ...................... $27.89 $21.52 $35.33 $10.04 $9.87
C CLASS:
Net Assets ..................................... $444,311 $148,976 $8,007,547 $359,385 $1,143,959
Shares Outstanding ............................. 15,984 6,853 231,337 36,097 116,091
Net Asset Value Per Share ...................... $27.80 $21.74 $34.61 $9.96 $9.85
TELECOM- TRANS-
MUNICATIONS PORTATION UTILITIES
FUND FUND FUND
----------- --------- ---------
ASSETS
Securities at Value (Notes 1 and 4)* ........... $9,042,394 $10,207,384 $41,415,582
Collateral for Securities Loaned (Note 8) ...... 2,753,415 2,884,681 7,656,523
Receivable for Securities Sold (Note 1) ........ 1,383,100 5,765,105 2,948,573
Receivable for Shares Purchased ................ 169,688 116,591 111,935
Investment Income Receivable (Note 1) .......... 8,743 14,561 44,425
---------- ----------- -----------
TOTAL ASSETS ................................. 13,357,340 18,988,322 52,177,038
---------- ----------- -----------
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 2,753,415 2,884,681 7,656,523
Payable for Securities Purchased (Note 1) ...... -- -- --
Liability for Shares Redeemed .................. 1,467,525 5,754,822 3,471,236
Investment Advisory Fee Payable (Note 2) ....... 9,771 12,037 18,154
Transfer Agent Fee Payable (Note 2) ............ 2,874 3,540 5,339
Distribution and Service Fee Payable (Note 2) .. 573 907 1,527
Portfolio Accounting Fee Payable (Note 2) ...... 1,150 1,416 2,136
Custody Fees Payable ........................... 557 467 721
Cash Payable to Custodian Bank ................. -- -- --
Other Liabilities .............................. 1,543 1,927 2,854
---------- ----------- -----------
TOTAL LIABILITIES ............................ 4,237,408 8,659,797 11,158,490
---------- ----------- -----------
NET ASSETS (NOTE 7) ............................ $9,119,932 $10,328,525 $41,018,548
---------- ----------- -----------
---------- ----------- -----------
INVESTOR CLASS:
Net Assets ..................................... $7,132,857 $4,306,066 $23,796,459
Shares Outstanding ............................. 558,696 237,860 1,207,623
Net Asset Value Per Share ...................... $12.77 $18.10 $19.71
ADVISOR CLASS:
Net Assets ..................................... $808,949 $5,802,355 $8,694,167
Shares Outstanding ............................. 64,934 335,564 449,888
Net Asset Value Per Share ...................... $12.46 $17.29 $19.33
C CLASS:
Net Assets ..................................... $1,178,126 $220,104 $8,527,922
Shares Outstanding ............................. 94,416 12,367 447,178
Net Asset Value Per Share ...................... $12.48 $17.80 $19.07
*THE COST OF SECURITIES AT VALUE IS $12,429,126, $3,686,770, $126,872,715,
$12,705,962, $36,064,666, $6,588,393, $9,280,052, AND $38,270,792,
RESPECTIVELY.
See Notes to Financial Statements.
40 & 41 SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003
- -------------------------------------------------------------------------------
BASIC BIOTECH- CONSUMER
BANKING MATERIALS NOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
--------- ---------- ----------- ---------- ----------- ----------
INVESTMENT INCOME
Interest (Note 1) .................. $ 792 $ 655 $ 9,458 $ 1,144 $ 3,996 $ 828
Interest from Securities Lending ... 327 153 42,699 486 1,950 457
Dividends, Net of Foreign Tax Withheld*
(Note 1) ......................... 206,156 126,726 -- 116,928 44,376 179,286
---------- ---------- ----------- ---------- ----------- ----------
Total Income ................... 207,275 127,534 52,157 118,558 50,322 180,571
---------- ---------- ----------- ---------- ----------- ----------
EXPENSES
Advisory Fees (Note 2) ............. 60,665 49,267 760,006 57,441 292,265 66,903
Transfer Agent Fees (Note 2) ....... 17,843 14,490 223,531 16,894 85,960 19,677
Distribution & Service Fees: (Note 2)
Advisor Class .................. 7,242 10,222 62,161 23,134 44,599 16,493
C Class ........................ 2,116 2,463 12,378 1,511 11,087 5,299
Accounting Fees (Note 2) ........... 7,137 5,796 89,389 6,758 34,384 7,871
Registration Fees .................. 4,389 3,289 40,277 4,820 13,641 4,770
Trustees' Fees ..................... 341 219 3,387 359 1,193 355
Custodian Fees ..................... 2,717 2,359 31,626 2,355 12,042 2,880
Miscellaneous ...................... 1,533 2,418 39,692 1,088 18,231 2,081
---------- ---------- ----------- ---------- ----------- ----------
Total Expenses ................. 103,983 90,523 1,262,447 114,360 513,402 126,329
---------- ---------- ----------- ---------- ----------- ----------
Net Investment Income (Loss) ....... 103,292 37,011 (1,210,290) 4,198 (463,080) 54,242
---------- ---------- ----------- ---------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities .............. 1,663,237 1,322,414 31,123,863 1,138,998 5,792,077 1,370,680
---------- ---------- ----------- ---------- ----------- ----------
Total Net Realized Gain (Loss) . 1,663,237 1,322,414 31,123,863 1,138,998 5,792,077 1,370,680
---------- ---------- ----------- ---------- ----------- ----------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities .............. 635,420 124,513 9,162,141 944,349 11,401,983 (394,522)
---------- ---------- ----------- ---------- ----------- ----------
Net Change in Unrealized Appreciation
(Depreciation) ................... 635,420 124,513 9,162,141 944,349 11,401,983 (394,522)
---------- ---------- ----------- ---------- ----------- ----------
Net Gain (Loss) on Investments ..... 2,298,657 1,446,927 40,286,004 2,083,347 17,194,060 976,158
---------- ---------- ----------- ---------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ......................... $2,401,949 $1,483,938 $39,075,714 $2,087,545 $16,730,980 $1,030,400
---------- ---------- ----------- ---------- ----------- ----------
---------- ---------- ----------- ---------- ----------- ----------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
----------- ---------- ----------
INVESTMENT INCOME
Interest (Note 1) .................. $ 2,703 $ 2,700 $ 2,245
Interest from Securities Lending ... 974 1,239 3,187
Dividends, Net of Foreign Tax Withheld*
(Note 1) ......................... 54,693 479,336 149,928
----------- ---------- ----------
Total Income ................... 58,370 483,275 155,360
----------- ---------- ----------
EXPENSES
Advisory Fees (Note 2) ............. 109,098 176,436 173,117
Transfer Agent Fees (Note 2) ....... 32,088 51,893 50,917
Distribution & Service Fees: (Note 2)
Advisor Class .................. 7,876 63,888 55,425
C Class ........................ 4,376 3,259 9,430
Accounting Fees (Note 2) ........... 12,835 20,757 20,367
Registration Fees .................. 6,803 9,761 10,729
Trustees' Fees ..................... 479 844 855
Custodian Fees ..................... 7,418 7,686 7,782
Miscellaneous ...................... 5,292 8,334 7,044
----------- ---------- ----------
Total Expenses ................. 186,265 342,858 335,666
----------- ---------- ----------
Net Investment Income (Loss) ....... (127,895) 140,417 (180,306)
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities .............. (5,421,793) 4,650,408 4,687,519
----------- ---------- ----------
Total Net Realized Gain (Loss) . (5,421,793) 4,650,408 4,687,519
----------- ---------- ----------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities .............. (554,604) 2,177,497 999,141
----------- ---------- ----------
Net Change in Unrealized Appreciation
(Depreciation) ................... (554,604) 2,177,497 999,141
----------- ---------- ----------
Net Gain (Loss) on Investments ..... (5,976,397) 6,827,905 5,686,660
----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ......................... $(6,104,292) $6,968,322 $5,506,354
----------- ---------- ----------
----------- ---------- ----------
* NET OF FOREIGN TAX WITHHELD OF $124, $56, $0, $0, $200, $13,649, $0, $188, AND
$250, RESPECTIVELY.
See Notes to Financial Statements.
42 & 43 SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED) Period Ended September 30, 2003
- --------------------------------------------------------------------------------
PRECIOUS
INTERNET LEISURE METALS RETAILING TECHNOLOGY
FUND FUND FUND FUND FUND
--------- ---------- ----------- ---------- -----------
INVESTMENT INCOME
Interest (Note 1) .............................. $ 934 $ 649 $ 10,107 $ 2,059 $ 3,041
Interest from Securities Lending ............... 212 830 25,424 1,690 395
Dividends, Net of Foreign Tax Withheld* (Note 1) 2,625 32,964 907,134 99,305 58,035
---------- ---------- ----------- ---------- -----------
Total Income ............................... 3,771 34,443 942,665 103,054 61,471
---------- ---------- ----------- ---------- -----------
EXPENSES
Advisory Fees (Note 2) ......................... 64,781 44,540 539,737 157,562 222,398
Transfer Agent Fees (Note 2) ................... 19,053 13,100 179,912 46,342 65,411
Distribution & Service Fees: (Note 2)
Advisor Class .............................. 13,281 10,044 4,865 50,532 64,148
C Class .................................... 3,842 1,054 25,792 6,093 17,620
Accounting Fees (Note 2) ....................... 7,621 5,240 71,509 18,537 26,165
Registration Fees .............................. 3,436 2,314 22,470 7,078 10,629
Trustees' Fees ................................. 357 235 1,858 674 910
Custodian Fees ................................. 2,648 1,966 25,275 6,981 9,563
Miscellaneous .................................. 3,500 2,233 48,256 9,876 13,524
---------- ---------- ----------- ---------- -----------
Total Expenses ............................. 118,519 80,726 919,674 303,675 430,368
---------- ---------- ----------- ---------- -----------
Net Investment Income (Loss) ................... (114,748) (46,283) 22,991 (200,621) (368,897)
---------- ---------- ----------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities .......................... (26,759) 463,157 (1,331,319) 2,198,051 6,993,077
---------- ---------- ----------- ---------- -----------
Total Net Realized Gain (Loss) ............. (26,759) 463,157 (1,331,319) 2,198,051 6,993,077
---------- ---------- ----------- ---------- -----------
Net Change in Unrealized Appreciation on:
Investment Securities .......................... 1,436,455 559,114 28,800,687 2,988,631 5,221,403
---------- ---------- ----------- ---------- -----------
Net Change in Unrealized Appreciation .......... 1,436,455 559,114 28,800,687 2,988,631 5,221,403
---------- ---------- ----------- ---------- -----------
Net Gain on Investments ........................ 1,409,696 1,022,271 27,469,368 5,186,682 12,214,480
---------- ---------- ----------- ---------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ....... $1,294,948 $ 975,988 $27,492,359 $4,986,061 $11,845,583
---------- ---------- ----------- ---------- -----------
---------- ---------- ----------- ---------- -----------
TELECOM- TRANS-
MUNICATIONS PORTATION UTILITIES
FUND FUND FUND
----------- ---------- ----------
INVESTMENT INCOME
Interest (Note 1) .............................. $ 664 $ 585 $ 1,351
Interest from Securities Lending ............... 1,520 317 3,176
Dividends, Net of Foreign Tax Withheld* (Note 1) 129,597 51,700 492,672
---------- ---------- ----------
Total Income ............................... 131,781 52,602 497,199
---------- ---------- ----------
EXPENSES
Advisory Fees (Note 2) ......................... 57,350 42,218 108,693
Transfer Agent Fees (Note 2) ................... 16,868 12,417 31,969
Distribution & Service Fees: (Note 2)
Advisor Class .............................. 3,413 14,115 15,596
C Class .................................... 7,143 1,787 10,437
Accounting Fees (Note 2) ....................... 6,747 4,967 12,787
Registration Fees .............................. 5,146 3,159 5,757
Trustees' Fees ................................. 399 223 445
Custodian Fees ................................. 2,535 1,783 4,583
Miscellaneous .................................. 739 1,511 5,425
---------- ---------- ----------
Total Expenses ............................. 100,340 82,180 195,692
---------- ---------- ----------
Net Investment Income (Loss) ................... 31,441 (29,578) 301,507
---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities .......................... 833,445 224,129 2,250,547
---------- ---------- ----------
Total Net Realized Gain (Loss) ............. 833,445 224,129 2,250,547
---------- ---------- ----------
Net Change in Unrealized Appreciation on:
Investment Securities .......................... 1,173,466 783,758 1,594,645
---------- ---------- ----------
Net Change in Unrealized Appreciation .......... 1,173,466 783,758 1,594,645
---------- ---------- ----------
Net Gain on Investments ........................ 2,006,911 1,007,887 3,845,192
---------- ---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ....... $2,038,352 $ 978,309 $4,146,699
---------- ---------- ----------
---------- ---------- ----------
*NET OF FOREIGN TAX WITHHELD OF $0, $0, $37,434, $0, $3,044, $252, $0, AND $0,
RESPECTIVELY.
See Notes to Financial Statements.
44 & 45 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
BANKING FUND BASIC MATERIALS FUND
--------------------------- ---------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------- ---------- ------------- -----------
FROM OPERATIONS
Net Investment Income ......................... $ 103,292 $ 356,448 $ 37,011 $ 55,273
Net Realized Gain (Loss) on Investments ....... 1,663,237 (3,906,801) 1,322,414 (6,660,315)
Net Change in Unrealized Appreciation (Depreciation)
on Investments .............................. 635,420 (3,508,252) 124,513 (8,072,486)
---------- ----------- ---------- ------------
Net Increase (Decrease) in Net Assets from
Operations .................................. 2,401,949 (7,058,605) 1,483,938 (14,677,528)
---------- ----------- ---------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income:
Investor Class ............................ -- (283,085) -- (54,496)
Advisor Class ............................. -- (228,653) -- (4,773)
C Class ................................... -- (12,291) -- (654)
---------- ----------- ---------- ------------
Total Distributions to Shareholders ........... -- (524,029) -- (59,923)
---------- ----------- ---------- ------------
NET DECREASE IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 6) .............. (1,001,446) (36,886,563) (375,858) (56,270,619)
---------- ----------- ---------- ------------
Net Increase (Decrease) in Net Assets ......... 1,400,503 (44,469,197) 1,108,080 (71,008,070)
NET ASSETS--BEGINNING OF PERIOD ................. 7,818,587 52,287,784 6,072,046 77,080,116
---------- ----------- ---------- ------------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $9,219,090 $ 7,818,587 $7,180,126 $ 6,072,046
---------- ----------- ---------- ------------
---------- ----------- ---------- ------------
BIOTECHNOLOGY FUND CONSUMER PRODUCTS FUND
------------------------ --------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------- ------------ ------------- ----------
FROM OPERATIONS
Net Investment Income (Loss) .................. $ (1,210,290) $ (2,069,442) $ 4,198 $ 44,155
Net Realized Gain (Loss) on Investments ....... 31,123,863 (52,849,546) 1,138,998 (2,889,425)
Net Change in Unrealized Appreciation (Depreciation)
on Investments .............................. 9,162,141 (31,384,976) 944,349 (4,666,953)
------------ ------------ ----------- -----------
Net Increase (Decrease) in Net Assets from
Operations .................................. 39,075,714 (86,303,964) 2,087,545 (7,512,223)
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income:
Investor Class ............................ -- -- -- (35,879)
Advisor Class ............................. -- -- -- (39,035)
C Class ................................... -- -- -- (3,854)
------------ ------------ ----------- -----------
Total Distributions to Shareholders ........... -- -- -- (78,768)
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 6) .............. 4,356,827 (16,907,096) 12,296,027 (41,238,368)
------------ ------------ ----------- -----------
Net Increase (Decrease) in Net Assets ......... 43,432,541 (103,211,060) 14,383,572 (48,829,359)
NET ASSETS--BEGINNING OF PERIOD ................. 136,949,957 240,161,017 4,956,144 53,785,503
------------ ------------ ----------- -----------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $180,382,498 $136,949,957 $19,339,716 $ 4,956,144
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
* UNAUDITED
See Notes to Financial Statements.
46 & 47 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- -------------------------------------------------------------------------------
ELECTRONICS FUND ENERGY FUND
--------------------------- ---------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------- ----------- ------------ ---------
FROM OPERATIONS
Net Investment Income (Loss) ................ $ (463,080) $ (606,663) $ 54,242 $ 19,029
Net Realized Gain (Loss) on Investments ..... 5,792,077 (31,409,827) 1,370,680 (5,211,068)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ............................ 11,401,983 (17,096,917) (394,522) (3,590,764)
------------ ----------- ----------- ------------
Net Increase (Decrease) in Net Assets from
Operations ................................ 16,730,980 (49,113,407) 1,030,400 (8,782,803)
------------ ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income:
Investor Class .......................... -- -- -- (5,308)
Advisor Class ........................... -- -- -- (7,328)
C Class ................................. -- -- -- (166)
------------ ----------- ----------- ------------
Total Distributions to Shareholders ......... -- -- -- (12,802)
------------ ----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 6) ............ (9,273,283) (17,489,349) 2,828,628 (19,773,177)
------------ ----------- ----------- ------------
Net Increase (Decrease) in Net Assets ....... 7,457,697 (66,602,756) 3,859,028 (28,568,782)
NET ASSETS--BEGINNING OF PERIOD ............... 39,984,363 106,587,119 13,213,349 41,782,131
------------ ----------- ----------- ------------
NET ASSETS--END OF PERIOD (NOTE 7) ............ $47,442,060 $ 39,984,363 $17,072,377 $ 13,213,349
------------ ----------- ----------- ------------
------------ ----------- ----------- ------------
ENERGY SERVICES FUND FINANCIAL SERVICES FUND
--------------------------- --------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
----------- --------- ------------ ---------
FROM OPERATIONS
Net Investment Income (Loss) ................ $ (127,895) $ (315,096) $ 140,417 $ 210,444
Net Realized Gain (Loss) on Investments ..... (5,421,793) (5,236,750) 4,650,408 (7,407,624)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ............................ (554,604) (9,991,027) 2,177,497 (7,414,327)
----------- ------------ ----------- -----------
Net Increase (Decrease) in Net Assets from
Operations ................................ (6,104,292) (15,542,873) 6,968,322 (14,611,507)
----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income:
Investor Class .......................... -- -- -- (44,843)
Advisor Class ........................... -- -- -- (35,417)
C Class ................................. -- -- -- (1,105)
----------- ------------ ----------- -----------
Total Distributions to Shareholders ......... -- -- -- (81,365)
----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 6) ............ 7,210,226 (41,431,952) 2,799,488 (29,981,125)
----------- ------------ ----------- -----------
Net Increase (Decrease) in Net Assets ....... 1,105,934 (56,974,825) 9,767,810 (44,673,997)
NET ASSETS--BEGINNING OF PERIOD ............... 17,754,913 74,729,738 21,966,570 66,640,567
----------- ------------ ----------- -----------
NET ASSETS--END OF PERIOD (NOTE 7) ............ $18,860,847 $ 17,754,913 $31,734,380 $21,966,570
----------- ------------ ----------- -----------
----------- ------------ ----------- -----------
*UNAUDITED
See Notes to Financial Statements.
48 & 49 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- -------------------------------------------------------------------------------
HEALTH CARE FUND INTERNET FUND
-------------------------- --------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------- ---------- ------------- ----------
FROM OPERATIONS
Net Investment Loss .......................... $ (180,306) $ (221,965) $ (114,748) $ (180,769)
Net Realized Gain (Loss) on Investments ...... 4,687,519 (7,455,038) (26,759) (3,631,782)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ............................. 999,141 (5,352,757) 1,436,455 460,731
----------- ----------- ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations ............................ 5,506,354 (13,029,760) 1,294,948 (3,351,820)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (NOTE 6) .................. (13,206,392) (1,177,110) 9,338,499 3,969,039
----------- ----------- ----------- -----------
Net Increase (Decrease) in Net Assets ........ (7,700,038) (14,206,870) 10,633,447 617,219
NET ASSETS--BEGINNING OF PERIOD ................ 36,948,249 51,155,119 4,285,862 3,668,643
----------- ----------- ----------- -----------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $29,248,211 $36,948,249 $14,919,309 $ 4,285,862
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
LEISURE FUND PRECIOUS METALS FUND
--------------------------- --------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------ ------------ -------------- ------------
FROM OPERATIONS
Net Investment Income (Loss) ................. $ (46,283) $ (106,029) $ 22,991 $ 53,404
Net Realized Gain (Loss) on Investments ...... 463,157 (1,628,265) (1,331,319) (10,170,467)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ............................. 559,114 (1,368,821) 28,800,687 (2,206,459)
----------- ------------ ------------ ------------
Net Increase (Decrease) in Net Assets
from Operations ............................ 975,988 (3,103,115) 27,492,359 (12,323,522)
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- --
----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (NOTE 6) .................. (2,215,325) (11,797,316) 70,015,252 29,123,557
----------- ------------ ------------ ------------
Net Increase (Decrease) in Net Assets ........ (1,239,337) (14,900,431) 97,507,611 16,800,035
NET ASSETS--BEGINNING OF PERIOD ................ 5,953,663 20,854,094 77,335,090 60,535,055
----------- ------------ ------------ ------------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $ 4,714,326 $ 5,953,663 $174,842,701 $ 77,335,090
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
* UNAUDITED
See Notes to Financial Statements.
50 & 51 SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- -------------------------------------------------------------------------------
RETAILING FUND TECHNOLOGY FUND
---------------------------- ---------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------- ------------ ------------- ------------
FROM OPERATIONS
Net Investment Loss .......................... $ (200,621) $ (264,006) $ (368,897) $ (484,683)
Net Realized Gain (Loss) on Investments ...... 2,198,051 (1,908,402) 6,993,077 (11,426,240)
Net Change in Unrealized Appreciation
(Depreciation) on Investments .............. 2,988,631 (8,251,654) 5,221,403 (4,693,304)
----------- ------------ ----------- ------------
Net Increase (Decrease) in Net Assets from
Operations ................................. 4,986,061 (10,424,062) 11,845,583 (16,604,227)
----------- ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- --
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (NOTE 6) .................. (5,505,089) (31,947,472) 6,349,853 (19,903,318)
----------- ------------ ----------- ------------
Net Increase (Decrease) in Net Assets ........ (519,028) (42,371,534) 18,195,436 (36,507,545)
NET ASSETS--BEGINNING OF PERIOD ................ 18,013,584 60,385,118 25,499,248 62,006,793
----------- ------------ ----------- ------------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $17,494,556 $ 18,013,584 $43,694,684 $ 25,499,248
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
TELECOMMUNICATIONS FUND TRANSPORTATION FUND
-------------------------- -------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2003* 2003 2003* 2003
------------ ---------- ----------- ----------
FROM OPERATIONS
Net Investment Income (Loss) ................. $ 31,441 $ 11,800 $ (29,578) $ (80,438)
Net Realized Gain (Loss) on Investments ...... 833,445 (5,434,089) 224,129 (2,266,161)
Net Change in Unrealized Appreciation
(Depreciation) on Investments .............. 1,173,466 700,402 783,758 (6,235,044)
----------- ----------- ----------- ------------
Net Increase (Decrease) in Net Assets from
Operations ................................. 2,038,352 (4,721,887) 978,309 (8,581,643)
----------- ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- --
----------- ----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (NOTE 6) .................. (3,742,418) 10,066,291 4,314,969 (29,059,008)
----------- ----------- ----------- ------------
Net Increase (Decrease) in Net Assets ........ (1,704,066) 5,344,404 5,293,278 (37,640,651)
NET ASSETS--BEGINNING OF PERIOD ................ 10,823,998 5,479,594 5,035,247 42,675,898
----------- ----------- ----------- ------------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $ 9,119,932 $10,823,998 $10,328,525 $ 5,035,247
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
* UNAUDITED
See Notes to Financial Statements.
52
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
UTILITIES FUND
--------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003* 2003
------------- -----------
FROM OPERATIONS
Net Investment Income ........................ $ 301,507 $ 486,725
Net Realized Gain (Loss) on Investments ...... 2,250,547 (10,683,311)
Net Change in Unrealized Appreciation
(Depreciation) on Investments ............. 1,594,645 (395,831)
----------- ------------
Net Increase (Decrease) in Net Assets from
Operations ................................. 4,146,699 (10,592,417)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income:
Investor Class ........................... -- (291,318)
Advisor Class ............................ -- (64,540)
C Class .................................. -- (14,142)
----------- ------------
Total Distributions to Shareholders .......... -- (370,000)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (NOTE 6) .................. 23,715,605 (8,665,326)
----------- ------------
Net Increase (Decrease) in Net Assets ........ 27,862,304 (19,627,743)
NET ASSETS--BEGINNING OF PERIOD ................ 13,156,244 32,783,987
----------- ------------
NET ASSETS--END OF PERIOD (NOTE 7) ............. $41,018,548 $ 13,156,244
----------- ------------
----------- ------------
* UNAUDITED
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 53
- --------------------------------------------------------------------------------
This page intentionally left blank.
54 & 55 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
INVESTOR CLASS
---------------------------
BANKING FUND
---------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
--------------- ----------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.30 $8.63
--------------- ---------
Net Investment Income+ ........................... .06 .12
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 1.43 (1.24)
--------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 1.49 (1.12)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.21)
--------------- ---------
Net Increase (Decrease) in Net Asset Value ....... 1.49 (1.33)
--------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $8.79 $7.30
--------------- ---------
--------------- ---------
TOTAL INVESTMENT RETURN .......................... 20.41% (13.15)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.33%** 1.38%
Net Expenses ..................................... 1.33%** 1.38%
Net Investment Income ............................ 1.52%** 1.52%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,133% 1,495%
Net Assets, End of Period (000's omitted) ........ $8,299 $7,352
INVESTOR CLASS
-----------------------------------------------
BANKING FUND
-----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002 2001 2000 1999*
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.27 $7.31 $8.77 $10.00
--------- --------- --------- --------
Net Investment Income+ ........................... .12 .14 .07 .01
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... .53 .82 (1.53) (1.24)
--------- --------- --------- --------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... .65 .96 (1.46) (1.23)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... (.29) -- -- --
--------- --------- --------- --------
Net Increase (Decrease) in Net Asset Value ....... .36 .96 (1.46) (1.23)
--------- --------- --------- --------
NET ASSET VALUE--END OF PERIOD ................... $8.63 $8.27 $7.31 $8.77
--------- --------- --------- --------
--------- --------- --------- --------
TOTAL INVESTMENT RETURN .......................... 8.30% 13.13% (16.65)% (12.30)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.50% 1.30% 1.58% 1.58%**
Net Expenses ..................................... 1.50% 1.29% 1.57% 1.57%**
Net Investment Income ............................ 1.49% 1.77% 0.87% 0.13%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,292% 1,394% 3,829% 11,211%
Net Assets, End of Period (000's omitted) ........ $28,992 $38,508 $39,546 $7,827
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
56 & 57 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS
---------------------------
BASIC MATERIALS FUND
---------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003+++ 2003++
-------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $17.22 $24.30
-------------- ---------
Net Investment Income+ ........................... .08 .12
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.59 (7.17)
-------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.67 (7.05)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.03)
-------------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.67 (7.08)
-------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $20.89 $17.22
-------------- ---------
-------------- ---------
TOTAL INVESTMENT RETURN .......................... 21.31% (29.02)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.34%** 1.39%
Net Expenses ..................................... 1.34%** 1.39%
Net Investment Income (Loss) ..................... 0.75%** 0.53%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,048% 1,943%
Net Assets, End of Period (000's omitted) ........ $5,836 $3,360
INVESTOR CLASS
-----------------------------------------------
BASIC MATERIALS FUND
-----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002++ 2001++ 2000++ 1999*++
---------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $21.03 $23.91 $23.25 $30.00
---------- --------- --------- ---------
Net Investment Income+ ........................... .27 .18 .60 --
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.27 (3.06) .06 (6.75)
---------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.54 (2.88) .66 (6.75)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... (.27) -- -- --
---------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.27 (2.88) .66 (6.75)
---------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $24.30 $21.03 $23.91 $23.25
---------- --------- --------- ---------
---------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 16.89% (12.05)% 2.84% (22.50)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.41% 1.52% 1.54% 1.62%**
Net Expenses ..................................... 1.41% 1.52% 1.53% 1.61%**
Net Investment Income (Loss) ..................... 1.12% 0.79% 2.21% (0.02)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,523% 2,600% 3,641% 5,704%
Net Assets, End of Period (000's omitted) ........ $45,716 $16,593 $16,851 $2,179
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
58 & 59 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS
--------------------------
BIOTECHNOLOGY FUND
--------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $13.75 $20.86
------------- ---------
Net Investment Loss+ ............................. (.11) (.19)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 5.11 (6.92)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 5.00 (7.11)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ...................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ....... 5.00 (7.11)
------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $18.75 $13.75
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN .......................... 36.36% (34.08)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.33%** 1.38%
Net Expenses ..................................... 1.33%** 1.38%
Net Investment Loss .............................. (1.27)%** (1.31)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 311% 477%
Net Assets, End of Period (000's omitted) ........ $156,235 $111,003
INVESTOR CLASS
----------------------------------------------
BIOTECHNOLOGY FUND
----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002 2001 2000 1999*
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $21.66 $28.88 $12.81 $10.00
--------- --------- --------- ---------
Net Investment Loss+ ............................. (.28) (.35) (.34) (.16)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... (.52) (6.87) 16.45 2.97
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... (.80) (7.22) 16.11 2.81
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ...................... -- -- (.04) --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... (.80) (7.22) 16.07 2.81
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $20.86 $21.66 $28.88 $12.81
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... (3.69)% (25.00)% 125.98% 28.10%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.23% 1.24% 1.42% 1.56%**
Net Expenses ..................................... 1.23% 1.23% 1.41% 1.55%**
Net Investment Loss .............................. (1.20)% (1.17)% (1.29)% (1.52)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 390% 305% 699% 2,670%
Net Assets, End of Period (000's omitted) ........ $218,263 $283,407 $456,303 $38,205
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
60 & 61 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS
---------------------------
CONSUMER PRODUCTS FUND
---------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003+++ 2003++
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $20.85 $25.08
------------- ---------
Net Investment Income+ ........................... .07 .12
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.85 (4.23)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.92 (4.11)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.12)
Net Realized Capital Gain ...................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.92 (4.23)
------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $24.77 $20.85
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN .......................... 18.80% (16.38)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.33%** 1.39%
Net Expenses ..................................... 1.33%** 1.39%
Net Investment Income (Loss) ..................... 0.58%** 0.53%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 464% 1,205%
Net Assets, End of Period (000's omitted) ........ $2,062 $1,640
INVESTOR CLASS
-----------------------------------------------
CONSUMER PRODUCTS FUND
-----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002++ 2001++ 2000++ 1999*++
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $21.54 $22.68 $29.13 $30.00
--------- --------- --------- ---------
Net Investment Income+ ........................... .12 .21 .12 --
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.48 (1.35) (5.52) (.87)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.60 (1.14) (5.40) (.87)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... (.06) -- -- --
Net Realized Capital Gain ...................... -- -- (1.05) --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.54 (1.14) (6.45) (.87)
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $25.08 $21.54 $22.68 $29.13
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 16.71% (5.03)% (19.20)% (2.90)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.56% 1.23% 1.37% 1.55%**
Net Expenses ..................................... 1.56% 1.22% 1.36% 1.54%**
Net Investment Income (Loss) ..................... 0.53% 0.94% 0.49% (0.03)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 890% 1,907% 5,466% 1,255%
Net Assets, End of Period (000's omitted) ........ $20,083 $8,503 $9,181 $1,280
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: JULY 6, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
62 & 63 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS
--------------------------
ELECTRONICS FUND
--------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.08 $16.96
------------- ---------
Net Investment Loss+ ............................. (.07) (.12)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.94 (8.76)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.87 (8.88)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ...................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.87 (8.88)
------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $11.95 $8.08
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN .......................... 47.90% (52.36)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.33%** 1.39%
Net Expenses ..................................... 1.33%** 1.39%
Net Investment Loss .............................. (1.18)%** (1.20)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 857% 2,413%
Net Assets, End of Period (000's omitted) ........ $37,761 $31,655
INVESTOR CLASS
-----------------------------------------------
ELECTRONICS FUND
-----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002 2001 2000 1999*
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $16.54 $40.10 $14.02 $10.00
--------- --------- --------- ---------
Net Investment Loss+ ............................. (.18) (.36) (.30) (.15)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... .60 (23.02) 26.38 4.17
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... .42 (23.38) 26.08 4.02
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ...................... -- (.18) -- --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... .42 (23.56) 26.08 4.02
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $16.96 $16.54 $40.10 $14.02
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 2.54% (58.48)% 186.02% 40.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.29% 1.36% 1.29% 1.57%**
Net Expenses ..................................... 1.29% 1.35% 1.28% 1.56%**
Net Investment Loss .............................. (1.08)% (1.09)% (1.14)% (1.23)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,279% 705% 1,162% 3,011%
Net Assets, End of Period (000's omitted) ........ $96,671 $70,131 $274,554 $12,814
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
64 & 65 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS
---------------------------
ENERGY FUND
---------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.80 $11.26
------------- ---------
Net Investment Income (Loss)+ .................... .05 .02
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... .84 (2.47)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... .89 (2.45)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.01)
------------- ---------
Net Increase (Decrease) in Net Asset Value ....... .89 (2.46)
------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $9.69 $8.80
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN .......................... 10.11% (21.79)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.31%** 1.39%
Net Expenses ..................................... 1.31%** 1.39%
Net Investment Income (Loss) ..................... 1.03%** 0.24%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 929% 1,362%
Net Assets, End of Period (000's omitted) ........ $14,347 $4,703
INVESTOR CLASS
----------------------------------------------
ENERGY FUND
----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002 2001 2000 1999*
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $11.43 $10.87 $8.99 $10.00
--------- --------- --------- ---------
Net Investment Income (Loss)+ .................... .12 (.08) .08 .05
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... (.19) .64 1.80 (1.06)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... (.07) .56 1.88 (1.01)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... (.10) -- -- --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... (.17) .56 1.88 (1.01)
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $11.26 $11.43 $10.87 $8.99
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... (0.52)% 5.15% 20.91% (10.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.32% 1.64% 1.58% 1.62%**
Net Expenses ..................................... 1.32% 1.63% 1.57% 1.62%**
Net Investment Income (Loss) ..................... 1.06% (0.70)% 0.83% 0.69%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,502% 1,707% 2,854% 6,070%
Net Assets, End of Period (000's omitted) ........ $31,769 $15,715 $13,980 $17,442
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 21, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
66 & 67 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS
---------------------------
ENERGY SERVICES FUND
---------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003+++ 2003++
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $17.37 $22.47
------------- ---------
Net Investment Loss+ ............................. (.09) (.15)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... .47 (4.95)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... .38 (5.10)
DISTRIBUTION TO SHAREHOLDERS ..................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ....... .38 (5.10)
------------- ---------
NET ASSET VALUE--END OF PERIOD ................... $17.75 $17.37
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN .......................... 2.19% (22.70)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.36%** 1.39%
Net Expenses ..................................... 1.36%** 1.39%
Net Investment Loss .............................. (0.94)%** (0.72)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,191% 971%
Net Assets, End of Period (000's omitted) ........ $16,316 $15,144
INVESTOR CLASS
----------------------------------------------
ENERGY SERVICES FUND
----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002++ 2001++ 2000++ 1999*++
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $27.30 $27.93 $18.06 $30.00
--------- --------- --------- ---------
Net Investment Loss+ ............................. (.18) (.12) (.18) (.21)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... (4.65) (.51) 10.05 (11.73)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... (4.83) (.63) 9.87 (11.94)
DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... (4.83) (.63) 9.87 (11.94)
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $22.47 $27.30 $27.93 $18.06
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... (17.69)% (2.26)% 54.65% (39.80)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.54% 1.26% 1.58% 1.58%**
Net Expenses ..................................... 1.54% 1.25% 1.57% 1.57%**
Net Investment Loss .............................. (0.74)% (0.41)% (0.81)% (1.14)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 949% 944% 1,794% 3,170%
Net Assets, End of Period (000's omitted) ........ $51,983 $50,159 $54,609 $74,135
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
68 & 69 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS
--------------------------
FINANCIAL SERVICES FUND
--------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $7.66 $10.23
------------- ---------
Net Investment Income (Loss)+ ..................... .05 .07
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 1.69 (2.62)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 1.74 (2.55)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ........................... -- (.02)
Net Realized Capital Gain ....................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ........ 1.74 (2.57)
------------- ---------
NET ASSET VALUE--END OF PERIOD .................... $9.40 $7.66
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN ........................... 22.72% (24.97)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.33%** 1.38%
Net Expenses ...................................... 1.33%** 1.38%
Net Investment Income (Loss) ...................... 1.07%** 0.82%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 845% 2,336%
Net Assets, End of Period (000's omitted) ......... $11,717 $6,671
INVESTOR CLASS
----------------------------------------------
FINANCIAL SERVICES FUND
----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002 2001 2000 1999*
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $10.00 $9.48 $9.99 $10.00
--------- --------- --------- ---------
Net Investment Income (Loss)+ ..................... .04 .06 (.01) (.01)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... .29 .46 (.49) --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... .33 .52 (.50) (.01)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ........................... (.10) -- -- --
Net Realized Capital Gain ....................... -- -- (.01) --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ .23 .52 (.51) (.01)
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $10.23 $10.00 $9.48 $9.99
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 3.39% 5.49% (4.97)% (0.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.51% 1.24% 1.72% 1.58%**
Net Expenses ...................................... 1.51% 1.23% 1.71% 1.57%**
Net Investment Income (Loss) ...................... 0.43% 0.58% (0.15)% (0.07)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,110% 1,271% 2,770% 7,269%
Net Assets, End of Period (000's omitted) ......... $25,147 $35,190 $145,449 $22,165
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
70 & 71 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS
--------------------------
HEALTH CARE FUND
--------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $9.21 $11.36
------------- ---------
Net Investment Loss+ .............................. (.03) (.02)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 2.00 (2.13)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 1.97 (2.15)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ...................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ........ 1.97 (2.15)
------------- ---------
NET ASSET VALUE--END OF PERIOD .................... $11.18 $9.21
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN ........................... 21.39% (18.93)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.33%** 1.38%
Net Expenses ...................................... 1.33%** 1.38%
Net Investment Loss ............................... (0.57)%** (0.25)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 690% 1,395%
Net Assets, End of Period (000's omitted) ......... $10,733 $13,400
INVESTOR CLASS
----------------------------------------------
HEALTH CARE FUND
----------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2002 2001 2000 1999*
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $11.25 $10.25 $11.45 $10.00
--------- --------- --------- ---------
Net Investment Loss+ .............................. (.04) (.05) (.04) (.02)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... .15 1.05 (1.15) 1.47
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... .11 1.00 (1.19) 1.45
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ...................... -- -- (.01) --
--------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ .11 1.00 (1.20) 1.45
--------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $11.36 $11.25 $10.25 $11.45
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 0.98% 9.76% (10.44)% 14.50%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.37% 1.55% 1.41% 1.44%**
Net Expenses ...................................... 1.37% 1.54% 1.41% 1.43%**
Net Investment Loss ............................... (0.36)% (0.39)% (0.36)% (0.21)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 936% 1,399% 4,850% 4,465%
Net Assets, End of Period (000's omitted) ......... $20,567 $42,495 $30,729 $14,016
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 17, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
72 & 73 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- ----------------------
INTERNET FUND INTERNET FUND
-------------------------- ----------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001*++
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $20.43 $30.55 $41.80 $200.00
------------- --------- --------- ---------
Net Investment Loss+ ............................. (.17) (.29) (.31) (1.60)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 8.21 (9.83) (10.94) (156.60)
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 8.04 (10.12) (11.25) (158.20)
DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- --
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 8.04 (10.12) (11.25) (158.20)
------------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $28.47 $20.43 $30.55 $41.80
------------- --------- --------- ---------
------------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 39.35% (33.13)% (26.91)% (79.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.33%** 1.38% 1.21% 1.61%**
Net Expenses ..................................... 1.33%** 1.38% 1.21% 1.61%**
Net Investment Loss .............................. (1.27)%** (1.34)% (1.15)% (1.43)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,013% 2,052% 2,186% 1,937%
Net Assets, End of Period (000's omitted) ........ $9,901 $3,335 $3,124 $1,625
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 2000.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIOD ENDED MARCH 31, 2001 HAVE BEEN RESTATED TO
REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
74 & 75 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- ----------------------------------------------
LEISURE FUND LEISURE FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $17.88 $24.00 $25.56 $33.30 $33.63 $30.00
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ..................... (.07) (.15) (.33) (.36) .09 (.24)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 4.42 (5.97) (1.23) (7.38) (.12) 3.87
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 4.35 (6.12) (1.56) (7.74) (.03) 3.63
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ...................... -- -- -- -- (.30) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 4.35 (6.12) (1.56) (7.74) (.33) 3.63
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $22.23 $17.88 $24.00 $25.56 $33.30 $33.63
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 24.33% (25.50)% (6.10)% (23.24)% (0.07)% 12.10%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.33%** 1.38% 1.57% 1.55% 1.58% 1.59%**
Net Expenses ...................................... 1.33%** 1.38% 1.57% 1.55% 1.58% 1.59%**
Net Investment Income (Loss) ...................... (0.72)%** (0.65)% (1.27)% (1.18)% 0.30% (0.76)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 2,351% 3,179% 2,609% 2,756% 5,734% 5,581%
Net Assets, End of Period (000's omitted) ......... $4,082 $2,325 $11,443 $1,277 $5,563 $4,796
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
76 & 77 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- ----------------------------------------------
PRECIOUS METALS FUND PRECIOUS METALS FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001 2000++ 1999++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $26.78 $27.90 $17.73 $18.80 $20.95 $29.10
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ..................... .01 .03 .01 .05 (.10) (.15)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 8.57 (1.15) 10.30 (1.12) (2.05) (8.00)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 8.58 (1.12) 10.31 (1.07) (2.15) (8.15)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ........................... -- -- (.14) -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 8.58 (1.12) 10.17 (1.07) (2.15) (8.15)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $35.36 $26.78 $27.90 $17.73 $18.80 $20.95
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 32.04% (4.01)% 58.44% (5.69)% (10.26)% (28.01)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.23%* 1.27% 1.39% 1.18% 1.23% 1.37%
Net Expenses ...................................... 1.23%* 1.27% 1.39% 1.17% 1.23% 1.36%
Net Investment Income (Loss) ...................... 0.06%* 0.09% 0.07% 0.30% (0.34)% (0.69)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate** ......................... 309% 744% 839% 822% 1,004% 1,191%
Net Assets, End of Period (000's omitted) ......... $162,024 $75,185 $59,625 $25,096 $37,780 $26,823
<FN>
* ANNUALIZED.
** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2000 HAVE BEEN RESTARTED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE
APRIL 14, 2000.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
78 & 79
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
--------------------------- ----------------------------------------------
RETAILING FUND RETAILING FUND
--------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $8.00 $11.12 $10.29 $13.22 $13.54 $10.00
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ..................... (.04) (.07) (.10) (.09) .02 (.10)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 2.30 (3.05) .93 (2.84) (.23) 3.64
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 2.26 (3.12) .83 (2.93) (.21) 3.54
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ...................... -- -- -- -- (.11) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 2.26 (3.12) .83 (2.93) (.32) 3.54
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $10.26 $8.00 $11.12 $10.29 $13.22 $13.54
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 28.25% (28.06)% 8.07% (22.16)% (1.51)% 35.40%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.33%** 1.38% 1.44% 1.51% 1.44% 1.42%**
Net Expenses ...................................... 1.33%** 1.38% 1.44% 1.50% 1.44% 1.42%**
Net Investment Income (Loss) ...................... (0.80)%** (0.82)% (0.92)% (0.78)% 0.16% (0.81)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,225% 3,788% 2,030% 3,062% 2,537% 3,243%
Net Assets, End of Period (000's omitted) ......... $7,156 $2,964 $21,667 $33,228 $81,097 $45,219
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1,1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
80 & 81 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- ----------------------------------------------
TECHNOLOGY FUND TECHNOLOGY FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $7.11 $11.00 $12.70 $31.59 $17.02 $10.00
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ .............................. (.05) (.09) (.15) (.24) (.19) (.16)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 3.03 (3.80) (1.55) (18.65) 14.76 7.18
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 2.98 (3.89) (1.70) (18.89) 14.57 7.02
DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 2.98 (3.89) (1.70) (18.89) 14.57 7.02
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $10.09 $7.11 $11.00 $12.70 $31.59 $17.02
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 41.91% (35.36)% (13.39)% (59.80)% 85.61% 70.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.33%** 1.38% 1.44% 1.30% 1.41% 1.39%**
Net Expenses ...................................... 1.33%** 1.38% 1.44% 1.30% 1.40% 1.39%**
Net Investment Loss ............................... (1.09)%** (1.13)% (1.21)% (1.01)% (0.85)% (1.23)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,062% 1,938% 1,017% 2,202% 4,929% 4,598%
Net Assets, End of Period (000's omitted) ......... $18,166 $8,348 $35,815 $26,660 $90,002 $24,400
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 14, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
82 & 83 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- ----------------------------------------------
TELECOMMUNICATIONS FUND TELECOMMUNICATIONS FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $10.05 $15.12 $24.03 $61.17 $39.09 $30.00
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ .................... .05 .06 (.12) (.30) (.30) (.12)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 2.67 (5.13) (8.70) (36.84) 22.41 9.21
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 2.72 (5.07) (8.82) (37.14) 22.11 9.09
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ..................... -- -- (.09) -- (.03) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 2.72 (5.07) (8.91) (37.14) 22.08 9.09
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $12.77 $10.05 $15.12 $24.03 $61.17 $39.09
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 27.06% (33.53)% (36.84)% (60.72)% 56.54% 30.30%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.33%** 1.38% 1.51% 1.37% 1.50% 1.56%**
Net Expenses ..................................... 1.33%** 1.38% 1.51% 1.37% 1.49% 1.55%**
Net Investment Income (Loss) ..................... 0.77%** 0.46% (0.60)% (0.65)% (0.59)% (0.34)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,142% 2,431% 1,192% 1,273% 1,555% 2,788%
Net Assets, End of Period (000's omitted) ........ $7,133 $9,152 $4,530 $9,924 $66,904 $12,300
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
84 & 85 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- ----------------------------------------------
TRANSPORTATION FUND TRANSPORTATION FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $15.03 $20.85 $19.26 $18.72 $23.97 $30.00
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ .............................. (.02) (.12) (.09) -- (.21) (.09)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 3.09 (5.70) 1.68 .54 (5.04) (5.94)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 3.07 (5.82) 1.59 .54 (5.25) (6.03)
DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 3.07 (5.82) 1.59 .54 (5.25) (6.03)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $18.10 $15.03 $20.85 $19.26 $18.72 $23.97
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 20.43% (27.91)% 8.26% 2.88% (21.90)% (20.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.33%** 1.40% 1.56% 1.55% 1.97% 1.58%**
Net Expenses ...................................... 1.33%** 1.40% 1.56% 1.54% 1.96% 1.58%**
Net Investment Loss ............................... (0.18)%** (0.70)% (0.51)% (0.05)% (0.92)% (0.36%)**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,091% 2,786% 1,704% 1,293% 1,970% 7,583%
Net Assets, End of Period (000's omitted) ......... $4,306 $960 $18,215 $8,246 $18,501 $3,014
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
86 & 87 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS
-------------------------- --------------------
UTILITIES FUND UTILITIES FUND
-------------------------- ---------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001*++
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $16.38 $25.44 $35.52 $30.00
------------- --------- --------- ---------
Net Investment Income+ ............................ .24 .60 .60 .54
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 3.09 (9.12) (9.12) 4.98
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 3.33 (8.52) (8.52) 5.52
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ........................... -- (.54) (1.56) --
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 3.33 (9.06) (10.08) 5.52
------------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $19.71 $16.38 $25.44 $35.52
------------- --------- --------- ---------
------------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 20.33% (33.55)% (24.07)% 18.40%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.32%** 1.39% 1.54% 1.59%**
Net Expenses ...................................... 1.32%** 1.39% 1.54% 1.59%**
Net Investment Income ............................. 2.58%** 3.24% 2.00% 1.65%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 714% 3,158% 2,418% 1,591%
Net Assets, End of Period (000's omitted) ......... $23,796 $9,978 $26,539 $15,566
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 3, 2000.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
88 & 89 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
BANKING FUND BANKING FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.06 $8.41 $8.13 $7.24 $8.74 $10.00
------------- --------- --------- --------- --------- ---------
Net Investment Income+ ........................... .05 .07 .08 .13 .01 .03
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 1.37 (1.21) .49 .76 (1.51) (1.29)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 1.42 (1.14) .57 .89 (1.50) (1.26)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.21) (.29) -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 1.42 (1.35) .28 .89 (1.50) (1.26)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $8.48 $7.06 $8.41 $8.13 $7.24 $8.74
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 20.11% (13.73)% 7.44% 12.29% (17.16)% (12.60)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.81%** 1.89% 1.91% 1.73% 2.06% 2.08%**
Net Expenses ..................................... 1.81%** 1.89% 1.91% 1.73% 2.05% 2.08%**
Net Investment Income ............................ 1.18%** 0.91% 0.95% 1.68% 0.07% 0.28%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,133% 1,495% 1,292% 1,394% 3,829% 11,211%
Net Assets, End of Period (000's omitted) ........ $717 $390 $23,281 $20,378 $17,872 $2
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
90 & 91 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
BASIC MATERIALS FUND BASIC MATERIALS FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $16.89 $23.91 $20.79 $23.79 $23.16 $31.68
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ .................... .06 (.06) .15 .15 (.03) .39
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.50 (6.93) 3.24 (3.15) .66 (8.91)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.56 (6.99) 3.39 (3.00) .63 (8.52)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.03) (.27) -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.56 (7.02) 3.12 (3.00) .63 (8.52)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $20.45 $16.89 $23.91 $20.79 $23.79 $23.16
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 21.08% (29.24)% 16.36% (12.61)% 2.72% (26.89)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.84%** 1.89% 2.00% 2.08% 2.01% 1.96%**
Net Expenses ..................................... 1.84%** 1.89% 2.00% 2.07% 2.00% 1.95%**
Net Investment Income (Loss) ..................... 0.55%** (0.23)% 0.65% 0.71% (0.10)% 1.25%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,048% 1,943% 1,523% 2,600% 3,641% 5,704%
Net Assets, End of Period (000's omitted) ........ $785 $2,419 $30,839 $238 $5,082 $688
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 14, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
92 & 93 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
BIOTECHNOLOGY FUND BIOTECHNOLOGY FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $13.35 $20.36 $21.25 $28.46 $12.66 $10.00
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ .................... (.15) (.25) (.40) (.49) (.44) .18
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 4.97 (6.76) (.49) (6.72) 16.28 2.48
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 4.82 (7.01) (.89) (7.21) 15.84 2.66
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ...................... -- -- -- -- (.04) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 4.82 (7.01) (.89) (7.21) 15.80 2.66
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $18.17 $13.35 $20.36 $21.25 $28.46 $12.66
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 36.10% (34.43)% (4.19)% (25.33)% 125.34% 26.60%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.82%** 1.88% 1.72% 1.74% 1.93% 2.16%**
Net Expenses ..................................... 1.82%** 1.88% 1.72% 1.73% 1.92% 2.16%**
Net Investment Income (Loss) ..................... (1.76)%** (1.82)% (1.69)% (1.68)% (1.96)% 1.79%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 311% 477% 390% 305% 699% 2,670%
Net Assets, End of Period (000's omitted) ........ $22,058 $24,280 $20,931 $25,739 $45,757 $1,838
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
94 & 95 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
CONSUMER PRODUCTS FUND CONSUMER PRODUCTS FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............ $20.46 $24.69 $21.24 $22.50 $29.10 $26.19
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ................... (.02) (.03) .03 -- (.24) (.24)
Net Realized and Unrealized Gains (Losses) on
Securities .................................... 3.80 (4.08) 3.48 (1.26) (5.31) 3.15
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ..................... 3.78 (4.11) 3.51 (1.26) (5.55) 2.91
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ......................... -- (.12) (.06) -- -- --
Net Realized Capital Gain ..................... -- -- -- -- (1.05) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ...... 3.78 (4.23) 3.45 (1.26) (6.60) 2.91
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................. $24.24 $20.46 $24.69 $21.24 $22.50 $29.10
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ......................... 18.48% (16.64)% 16.52% (5.60)% (19.76)% 11.11%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................. 1.83%** 1.89% 2.02% 1.85% 2.13% 2.05%**
Net Expenses .................................... 1.83%** 1.89% 2.02% 1.84% 2.13% 2.04%**
Net Investment Income (Loss) .................... (0.13)%** (0.09)% 0.18% 0.02% (1.01)% (1.38)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ...................... 464% 1,205% 890% 1,907% 5,466% 1,255%
Net Assets, End of Period (000's omitted) ....... $17,005 $3,120 $33,201 $18,104 $3,135 $20,952
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 17, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
96 & 97 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
ELECTRONICS FUND ELECTRONICS FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.87 $16.62 $16.28 $39.66 $13.96 $9.98
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................. (.09) (.16) (.26) (.58) (.35) (.23)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 3.83 (8.59) .60 (22.62) 26.05 4.21
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 3.74 (8.75) .34 (23.20) 25.70 3.98
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ...................... -- -- -- (.18) -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 3.74 (8.75) .34 (23.38) 25.70 3.98
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $11.61 $7.87 $16.62 $16.28 $39.66 $13.96
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 47.52% (52.65)% 2.09% (58.68)% 184.10% 39.88%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.83%** 1.87% 1.75% 1.87% 1.76% 2.05%**
Net Expenses ..................................... 1.83%** 1.87% 1.75% 1.86% 1.75% 2.04%**
Net Investment Loss .............................. (1.69)%** (1.72)% (1.50)% (1.74)% (1.51)% (1.86)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 857% 2,413% 1,279% 705% 1,162% 3,011%
Net Assets, End of Period (000's omitted) ........ $8,606 $7,389 $9,528 $7,325 $25,034 $4,024
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
98 & 99
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
ENERGY FUND ENERGY FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $8.63 $11.09 $11.33 $10.84 $9.01 $10.07
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ ..................... .02 -- .05 (.03) .15 (.14)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... .84 (2.45) (.19) .52 1.68 (.92)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... .86 (2.45) (.14) .49 1.83 (1.06)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ........................... -- (.01) (.10) -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ .86 (2.46) (.24) .49 1.83 (1.06)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $9.49 $8.63 $11.09 $11.33 $10.84 $9.01
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 9.97% (22.13)% (1.14)% 4.52% 20.31% (10.53)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.85%** 1.88% 1.80% 2.11% 2.06% 1.99%**
Net Expenses ...................................... 1.85%** 1.88% 1.80% 2.11% 2.05% 1.98%**
Net Investment Income (Loss) ...................... 0.38%** (0.03)% 0.42% (0.26)% 1.45% (1.75)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 929% 1,362% 1,502% 1,707% 2,854% 6,070%
Net Assets, End of Period (000's omitted) ......... $1,366 $7,039 $9,621 $4,269 $4,432 $609
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 5, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
100 & 101 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
ENERGY SERVICES FUND ENERGY SERVICES FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $17.01 $22.08 $26.97 $27.69 $18.03 $29.58
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ .............................. (.11) (.24) (.27) (.33) (.33) (.27)
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... .43 (4.83) (4.62) (.39) 9.99 (11.28)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... .32 (5.07) (4.89) (.72) 9.66 (11.55)
DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ .32 (5.07) (4.89) (.72) 9.66 (11.55)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $17.33 $17.01 $22.08 $26.97 $27.69 $18.03
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 1.88% (22.96)% (18.13)% (2.60)% 53.58% (39.05)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.83%** 1.88% 1.97% 1.74% 2.20% 2.05%**
Net Expenses ...................................... 1.83%** 1.88% 1.97% 1.73% 2.20% 2.04%**
Net Investment Loss ............................... (1.18)%** (1.26)% (1.21)% (1.17)% (1.49)% (1.66)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,191% 971% 949% 944% 1,794% 3,170%
Net Assets, End of Period (000's omitted) ......... $1,135 $1,961 $22,051 $2,879 $34,524 $22,323
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
102 & 103 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
------------------------- ----------------------------------------------
FINANCIAL SERVICES FUND FINANCIAL SERVICES FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.57 $10.08 $9.89 $9.42 $9.95 $10.47
------------- --------- --------- --------- --------- ---------
Net Investment Income (Loss)+ .................... .02 .03 (.01) .01 (.05) (.05)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 1.67 (2.52) .30 .46 (.47) (.47)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 1.69 (2.49) .29 .47 (.52) (.52)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income .......................... -- (.02) (.10) -- -- --
Net Realized Capital Gain ...................... -- -- -- -- (.01) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 1.69 (2.51) .19 .47 (.53) (.52)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $9.26 $7.57 $10.08 $9.89 $9.42 $9.95
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 22.32% (24.74)% 3.02% 4.99% (5.19)% (4.97)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.82%** 1.88% 2.02% 1.74% 2.29% 2.13%**
Net Expenses ..................................... 1.82%** 1.88% 2.02% 1.73% 2.28% 2.12%**
Net Investment Income (Loss) ..................... 0.46%** 0.35% (0.08)% 0.05% (0.64)% (0.60)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 845% 2,336% 1,110% 1,271% 2,770% 7,269%
Net Assets, End of Period (000's omitted) ........ $19,236 $15,074 $40,968 $30,627 $129,760 $21,387
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
104 & 105 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
HEALTH CARE FUND HEALTH CARE FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.97 $11.11 $11.06 $10.12 $11.37 $9.93
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................. (.05) (.06) (.09) (.11) (.15) (.18)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 1.95 (2.08) .14 1.05 (1.09) 1.62
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 1.90 (2.14) .05 .94 (1.24) 1.44
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ..................... -- -- -- -- (.01) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 1.90 (2.14) .05 .94 (1.25) 1.44
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $10.87 $8.97 $11.11 $11.06 $10.12 $11.37
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 21.18% (19.26)% 0.45% 9.29% (10.95)% 14.50%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.83%** 1.88% 1.85% 2.05% 2.16% 2.24%**
Net Expenses ..................................... 1.83%** 1.88% 1.85% 2.04% 2.15% 2.23%**
Net Investment Loss .............................. (1.06)%** (0.66)% (0.81)% (0.98)% (1.51)% (1.96)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 690% 1,395% 936% 1,399% 4,850% 4,465%
Net Assets, End of Period (000's omitted) ........ $17,174 $23,127 $29,504 $24,444 $1,741 $24
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 11, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
106 & 107 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------
INTERNET FUND INTERNET FUND
-------------------------- ----------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001*++
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $20.05 $30.18 $41.60 $200.00
------------- --------- --------- ---------
Net Investment Loss+ ............................. (.25) (.40) (.64) (2.80)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 8.09 (9.73) (10.78) (155.60)
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 7.84 (10.13) (11.42) (158.40)
DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- --
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 7.84 (10.13) (11.42) (158.40)
------------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $27.89 $20.05 $30.18 $41.60
------------- --------- --------- ---------
------------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 39.10% (33.57)% (27.45)% (79.20)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.82%** 1.82% 1.74% 2.09%**
Net Expenses ..................................... 1.82%** 1.82% 1.74% 2.08%**
Net Investment Loss .............................. (1.78)%** (1.79)% (1.68)% (2.00)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,013% 2,052% 2,186% 1,937%
Net Assets, End of Period (000's omitted) ........ $4,574 $717 $396 $201
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 2000.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR PERIOD ENDED MARCH 31, 2001 HAVE BEEN RESTATED TO
REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001.
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
108 & 109 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
LEISURE FUND LEISURE FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............ $17.37 $23.34 $24.93 $32.82 $33.48 $28.05
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................ (.11) (.39) (.51) (.51) (.42) (.36)
Net Realized and Unrealized Gains (Losses) on
Securities .................................... 4.26 (5.58) (1.08) (7.38) .06 5.79
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ..................... 4.15 (5.97) (1.59) (7.89) (.36) 5.43
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains .................... -- -- -- -- (.30) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ...... 4.15 (5.97) (1.59) (7.89) (.66) 5.43
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................. $21.52 $17.37 $23.34 $24.93 $32.82 $33.48
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ......................... 23.89% (25.58)% (6.38)% (24.04)% (1.06)% 19.36%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................. 1.83%** 1.90% 2.26% 2.08% 2.08% 2.23%**
Net Expenses .................................... 1.83%** 1.90% 2.26% 2.07% 2.08% 2.22%**
Net Investment Loss ............................. (1.08)%** (1.68)% (2.05)% (1.77)% (1.32)% (1.95)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ...................... 2,351% 3,179% 2,609% 2,756% 5,734% 5,581%
Net Assets, End of Period (000's omitted) ....... $484 $3,592 $9,324 $18,299 $18,559 $8
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: JUNE 3, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
110
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS
-----------------------
PRECIOUS METALS FUND
-----------------------
PERIOD
ENDED
SEPTEMBER 30,
2003*++
-------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $31.68
-------------
Net Investment Income+ ............................ .03
Net Realized and Unrealized Gains on Securities ... 3.62
-------------
Net Increase in Net Asset Value Resulting from
Operations ...................................... 3.65
DISTRIBUTION TO SHAREHOLDERS ...................... --
-------------
Net Increase in Net Asset Value ................... 3.65
-------------
NET ASSET VALUE--END OF PERIOD .................... $35.33
-------------
-------------
TOTAL INVESTMENT RETURN ........................... 11.52%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.74%**
Net Expenses ...................................... 1.74%**
Net Investment Income ............................. 0.43%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 309%
Net Assets, End of Period (000's omitted) ......... $4,811
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 111
- --------------------------------------------------------------------------------
This page intentionally left blank.
112 & 113 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
RETAILING FUND RETAILING FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.85 $10.94 $10.17 $13.18 $13.50 $10.01
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................. (.06) (.12) (.15) (.16) (.33) (.15)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 2.25 (2.97) .92 (2.85) .12 3.64
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 2.19 (3.09) .77 (3.01) (.21) 3.49
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains ..................... -- -- -- -- (.11) --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 2.19 (3.09) .77 (3.01) (.32) 3.49
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $10.04 $7.85 $10.94 $10.17 $13.18 $13.50
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 27.90% (28.24)% 7.57% (22.84)% (1.52)% 34.87%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.83%** 1.88% 1.95% 2.10% 2.10% 1.95%**
Net Expenses ..................................... 1.83%** 1.88% 1.95% 2.09% 2.09% 1.94%**
Net Investment Loss .............................. (1.26)%** (1.35)% (1.40)% (1.49)% (2.69)% (1.37)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,225% 3,788% 2,030% 3,062% 2,537% 3,243%
Net Assets, End of Period (000's omitted) ........ $9,979 $14,965 $37,690 $11,286 $91,740 $337
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 21, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
114 & 115 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------------------------------
TECHNOLOGY FUND TECHNOLOGY FUND
-------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003++ 2003 2002 2001 2000 1999*
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $6.97 $10.77 $12.49 $31.20 $16.90 $10.84
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................. (.07) (.12) (.20) (.31) (.37) (.20)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 2.97 (3.68) (1.52) (18.40) 14.67 6.26
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 2.90 (3.80) (1.72) (18.71) 14.30 6.06
DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 2.90 (3.80) (1.72) (18.71) 14.30 6.06
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $9.87 $6.97 $10.77 $12.49 $31.20 $16.90
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 41.61% (35.28)% (13.77)% (59.97)% 84.62% 55.90%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.83%** 1.88% 1.93% 1.81% 1.89% 2.18%**
Net Expenses ..................................... 1.83%** 1.88% 1.93% 1.81% 1.89% 2.17%**
Net Investment Loss .............................. (1.60)%** (1.62)% (1.69)% (1.48)% (1.60)% (1.78)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,062% 1,938% 1,017% 2,202% 4,929% 4,598%
Net Assets, End of Period (000's omitted) ........ $24,385 $16,717 $25,769 $20,450 $32,537 $2,269
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 29, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
116 & 117 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
--------------------------- -----------------------------------------------
TELECOMMUNICATIONS FUND TELECOMMUNICATIONS FUND
--------------------------- -----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
-------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............ $9.81 $14.76 $23.58 $60.39 $38.73 $30.00
-------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................ (.02) (.09) (.06) (.54) (.57) (.09)
Net Realized and Unrealized Gains (Losses) on
Securities .................................... 2.67 (4.86) (8.67) (36.27) 22.26 8.82
-------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ..................... 2.65 (4.95) (8.73) (36.81) 21.69 8.73
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gains .................... -- -- (.09) -- (.03) --
-------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ...... 2.65 (4.95) (8.82) (36.81) 21.66 8.73
-------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................. $12.46 $9.81 $14.76 $23.58 $60.39 $38.73
-------------- --------- --------- --------- --------- ---------
-------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN ......................... 27.01% (33.54)% (37.16)% (60.95)% 55.98% 29.10%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................. 1.81%** 1.86% 1.87% 1.87% 2.05% 2.35%**
Net Expenses .................................... 1.81%** 1.86% 1.87% 1.86% 2.05% 2.34%**
Net Investment Loss ............................. (0.41)%** (0.68)% (0.29)% (1.24)% (1.14)% (0.27)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ...................... 1,142% 2,431% 1,192% 1,273% 1,555% 2,788%
Net Assets, End of Period (000's omitted) ....... $809 $898 $931 $19,154 $3,449 $1,929
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
118 & 119 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
--------------------------- -----------------------------------------------
TRANSPORTATION FUND TRANSPORTATION FUND
--------------------------- -----------------------------------------------
PERIOD YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++
------------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............. $14.40 $19.98 $18.57 $18.48 $23.85 $27.78
------------- --------- --------- --------- --------- ---------
Net Investment Loss+ ............................. (.07) (.15) (.21) (.03) -- (.30)
Net Realized and Unrealized Gains (Losses) on
Securities ..................................... 2.96 (5.43) 1.62 .12 (5.37) (3.63)
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ...................... 2.89 (5.58) 1.41 .09 (5.37) (3.93)
DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- -- --
------------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ....... 2.89 (5.58) 1.41 .09 (5.37) (3.93)
------------- --------- --------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD ................... $17.29 $14.40 $19.98 $18.57 $18.48 $23.85
------------- --------- --------- --------- --------- ---------
------------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN .......................... 20.07% (27.93)% 7.59% 0.49% (22.52)% (14.15)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ................................... 1.83%** 1.92% 2.23% 2.08% 1.34% 2.08%**
Net Expenses ..................................... 1.83%** 1.92% 2.23% 2.08% 1.33% 2.07%**
Net Investment Loss .............................. (0.83)%** (0.94)% (1.16)% (0.16)% (0.08)% (1.38)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ....................... 1,091% 2,786% 1,704% 1,293% 1,970% 7,583%
Net Assets, End of Period (000's omitted) ........ $5,802 $3,561 $23,807 $233 $87,189 $4
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: JUNE 9,1998.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
120 & 121 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS
-------------------------- ----------------------
UTILITIES FUND UTILITIES FUND
-------------------------- ----------------------
PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001*++
------------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $16.11 $25.23 $35.43 $30.00
------------- --------- --------- ---------
Net Investment Income+ ............................ .18 .33 .36 .36
Net Realized and Unrealized Gains (Losses) on
Securities ...................................... 3.04 (8.91) (9.00) 5.07
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 3.22 (8.58) (8.64) 5.43
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ........................... -- (.54) (1.56) --
------------- --------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 3.22 (9.12) (10.20) 5.43
------------- --------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $19.33 $16.11 $25.23 $35.43
------------- --------- --------- ---------
------------- --------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 19.99% (34.07)% (24.47)% 18.10%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 1.82%** 1.89% 1.85% 2.09%**
Net Expenses ...................................... 1.82%** 1.89% 1.85% 2.08%**
Net Investment Income ............................. 1.96%** 1.74% 1.15% 1.03%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 714% 3,158% 2,418% 1,591%
Net Assets, End of Period (000's omitted) ......... $8,694 $2,239 $6,053 $14,360
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 3, 2000.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
122 & 123 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
------------------------------------------------- ------------------------------------
BANKING FUND BANKING FUND BASIC MATERIALS FUND
------------------------------------------------ ------------------------------------
PERIOD YEAR YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003 2002 2001* 2003+++ 2003++ 2002*++
------------- --------- --------- --------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .... $7.12 $8.54 $8.27 $8.27 $16.86 $24.03 $23.13
------------- --------- --------- --------- ------------- --------- ---------
Net Investment Income (Loss)+ ........... .05 .02 .03 -- (.02) (.06) (.03)
Net Realized and Unrealized Gains (Losses)
on Securities ......................... 1.34 (1.23) .53 -- 3.53 (7.08) 1.20
------------- --------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. 1.39 (1.21) .56 -- 3.51 (7.14) 1.17
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ................. -- (.21) (.29) -- -- (.03) (.27)
------------- --------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value 1.39 (1.42) .27 -- 3.51 (7.17) .90
------------- --------- --------- --------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $8.51 $7.12 $8.54 $8.27 $20.37 $16.86 $24.03
------------- --------- --------- --------- ------------- --------- ---------
------------- --------- --------- --------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ................. 19.52% (14.35)% 7.19% 0.00% 20.82% (29.72)% 5.10%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 2.33%** 2.38% 2.40% 0.00%** 2.34%** 2.39% 2.60%**
Net Expenses ............................ 2.33%** 2.38% 2.40% 0.00%** 2.34%** 2.39% 2.60%**
Net Investment Income (Loss) ............ 1.23%** 0.23% 0.42% 0.00%** (0.21)%** (0.23)% (0.13)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** .............. 1,133% 1,495% 1,292% 1,394% 1,048% 1,943% 1,523%
Net Assets, End of Period (000's omitted) $203 $76 $15 $14 $559 $294 $525
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001--BANKING FUND; MAY 3,
2001--BASIC MATERIALS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ 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
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
124 & 125 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS
------------------------------------
BIOTECHNOLOGY FUND
------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003 2002
------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .... $13.47 $20.66 $21.66
------------- --------- ---------
Net Investment Loss+ .................... (.19) (.33) (.54)
Net Realized and Unrealized Gains (Losses)
on Securities ......................... 4.99 (6.86) (.46)
------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. 4.80 (7.19) (1.00)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ................. -- -- --
------------- --------- ---------
Net Increase (Decrease) in Net Asset Value 4.80 (7.19) (1.00)
------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $18.27 $13.47 $20.66
------------- --------- ---------
------------- --------- ---------
TOTAL INVESTMENT RETURN ................. 35.63% (34.80)% (4.62)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 2.33%** 2.38% 2.38%
Net Expenses ............................ 2.33%** 2.38% 2.38%
Net Investment Loss ..................... (2.27)%** (2.30)% (2.36)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** .............. 311% 477% 390%
Net Assets, End of Period (000's omitted) $2,090 $1,667 $967
C CLASS
-------------------------------------------------------
BIOTECHNOLOGY FUND CONSUMER PRODUCTS FUND
------------------ ------------------------------------
PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2001* 2003+++ 2003++ 2002*++
--------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .... $21.66 $20.52 $24.93 $21.81
--------- ------------- --------- ---------
Net Investment Loss+ .................... -- (.09) (.09) (.03)
Net Realized and Unrealized Gains (Losses)
on Securities ......................... -- 3.81 (4.20) 3.21
--------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. -- 3.72 (4.29) 3.18
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ................. -- -- (.12) (.06)
--------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value -- 3.72 (4.41) 3.12
--------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $21.66 $24.24 $20.52 $24.93
--------- ------------- --------- ---------
--------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ................. 0.00% 18.13% (17.20)% 14.57%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 0.00%** 2.33%** 2.39% 2.57%**
Net Expenses ............................ 0.00%** 2.33%** 2.39% 2.57%**
Net Investment Loss ..................... 0.00%** (0.75)%** (0.35)% (0.19)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** .............. 305% 464% 1,205% 890%
Net Assets, End of Period (000's omitted) $3 $273 $196 $501
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001--BIOTECHNOLOGY FUND;
JULY 24, 2001--CONSUMER PRODUCTS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ 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
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
126 & 127 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS
------------------------
ELECTRONICS FUND
------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003++ 2003
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............... $7.91 $16.82
------------- ---------
Net Investment Loss+ ............................... (.12) (.22)
Net Realized and Unrealized Gains (Losses)
on Securities .................................... 3.85 (8.69)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........................ 3.73 (8.91)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ............................ -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ......... 3.73 (8.91)
------------- ---------
NET ASSET VALUE--END OF PERIOD ..................... $11.64 $7.91
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN ............................ 47.16% (52.97)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ..................................... 2.33%** 2.39%
Net Expenses ....................................... 2.33%** 2.39%
Net Investment Loss ................................ (2.17)%** (2.21)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ......................... 857% 2,413%
Net Assets, End of Period (000's omitted) .......... $1,075 $940
C CLASS
----------------------------------------------------------
ELECTRONICS FUND ENERGY FUND
-------------------- -------------------------------------
YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2002 2001* 2003++ 2003 2002*
--------- --------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............... $16.54 $18.72 $8.63 $11.14 $11.87
--------- --------- ------------- --------- ---------
Net Investment Loss+ ............................... (.37) (.01) -- (.07) (.09)
Net Realized and Unrealized Gains (Losses)
on Securities .................................... .65 (2.17) .83 (2.43) (.54)
--------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........................ .28 (2.18) .83 (2.50) (.63)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ............................ -- -- -- (.01) (.10)
--------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value ......... .28 (2.18) .83 (2.51) (.73)
--------- --------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD ..................... $16.82 $16.54 $9.46 $8.63 $11.14
--------- --------- ------------- --------- ---------
--------- --------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ............................ 1.69% (11.65)% 9.62% (22.48)% (5.22)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ..................................... 2.49% 2.11%** 2.32%** 2.38% 2.51%**
Net Expenses ....................................... 2.49% 1.82%** 2.32%** 2.38% 2.51%**
Net Investment Loss ................................ (2.27)% (1.76)%** 0.00%** (0.81)% (0.92)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ......................... 1,279% 705% 929% 1,362% 1,502%
Net Assets, End of Period (000's omitted) .......... $388 $2 $1,360 $1,471 $392
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001--ELECTRONICS FUND;
APRIL 19, 2001--ENERGY FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
128 & 129 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
--------------------------------------------------- ------------------------------------
ENERGY
ENERGY SERVICES FUND SERVICES FUND FINANCIAL SERVICES FUND
--------------------------------------------------- ------------------------------------
PERIOD YEAR YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003++ 2002++ 2001*++ 2003+++ 2003 2002*
------------- --------- --------- --------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .... $17.04 $22.23 $27.30 $27.30 $7.57 $10.14 $10.46
------------- --------- --------- --------- ------------- --------- ---------
Net Investment Loss+ .................... (.16) (.30) (.30) -- -- (.02) (.05)
Net Realized and Unrealized Gains (Losses)
on Securities ......................... .45 (4.89) (4.77) -- 1.66 (2.53) (.17)
------------- --------- --------- --------- ------------- --------- ---------
Net Incease (Decrease) in Net Asset Value
Resulting from Operations ............. .29 (5.19) (5.07) -- 1.66 (2.55) (.22)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ................. -- -- -- -- -- (.02) (.10)
------------- --------- --------- --------- ------------- --------- ---------
Net (Increase) Decrease in Net Asset Value .29 (5.19) (5.07) -- 1.66 (2.57) (.32)
------------- --------- --------- --------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $17.33 $17.04 $22.23 $27.30 $9.23 $7.57 $10.14
------------- --------- --------- --------- ------------- --------- ---------
------------- --------- --------- --------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ................. 1.70% (23.35)% (18.57)% 0.00% 21.93% (25.19)% (2.02)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 2.35%** 2.39% 2.57% 0.00%** 2.33%** 2.37% 2.52%**
Net Expenses ............................ 2.35%** 2.39% 2.57% 0.00%** 2.33%** 2.37% 2.52%**
Net Investment Loss ..................... (1.76)%** (1.60)% (1.60)% 0.00%** (0.05)%** (0.19)% (0.50)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** .............. 1,191% 971% 949% 944% 845% 2,336% 1,110%
Net Assets, End of Period (000's omitted) $1,409 $651 $697 $3 $782 $222 $526
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS:MARCH 30, 2001--ENERGY SERVICES FUND;
APRIL 19, 2001--FINANCIAL SERVICES FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
130 & 131 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS
-----------------------------------
HEALTH CARE FUND
-----------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31,
2003++ 2003 2002
------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .... $9.03 $11.25 $11.25
------------- --------- ---------
Net Investment Loss+ .................... (.09) (.12) (.18)
Net Realized and Unrealized Gains (Losses)
on Securities ......................... 1.96 (2.10) .18
------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. 1.87 (2.22) --
DISTRIBUTION TO SHAREHOLDERS ............ -- -- --
------------- --------- ---------
Net Increase (Decrease) in Net Asset Value 1.87 (2.22) --
------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $10.90 $9.03 $11.25
------------- --------- ---------
------------- --------- ---------
TOTAL INVESTMENT RETURN ................. 20.71% (19.73)% 0.00%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 2.34%** 2.37% 2.54%
Net Expenses ............................ 2.34%** 2.37% 2.54%
Net Investment Loss ..................... (1.65)%** (1.30)% (1.59)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** .............. 690% 1,395% 936%
Net Assets, End of Period (000's omitted) $1,340 $421 $1,085
C CLASS
-----------------------------------------------------
HEALTH CARE FUND INTERNET FUND
---------------- ------------------------------------
PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2001* 2003++ 2003 2002*
--------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .... $11.25 $20.04 $30.28 $53.40
--------- ------------- --------- ---------
Net Investment Loss+ .................... -- (.30) (.50) (.78)
Net Realized and Unrealized Gains (Losses)
on Securities ......................... -- 8.06 (9.74) (22.34)
--------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ............. -- 7.76 (10.24) (23.12)
DISTRIBUTION TO SHAREHOLDERS ............ -- -- -- --
--------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value -- 7.76 (10.24) (23.12)
--------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .......... $11.25 $27.80 $20.04 $30.28
--------- ------------- --------- ---------
--------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ................. 0.00% 38.72% (33.82)% (43.30)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .......................... 0.00%** 2.33%** 2.37% 2.36%**
Net Expenses ............................ 0.00%** 2.33%** 2.37% 2.36%**
Net Investment Loss ..................... 0.00%** (2.26)%** (2.34)% (2.33)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** .............. 1,399% 1,013% 2,052% 2,186%
Net Assets, End of Period (000's omitted) $3 $444 $234 $149
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS:MARCH 30, 2001--HEALTH CARE FUND; APRIL
19, 2001--INTERNET FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
132 & 133 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
--------------------------------------- -------------------------------------
LEISURE FUND LEISURE FUND PRECIOUS METALS FUND
--------------------------------------- -------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003++ 2002*++ 2003+++ 2003 2002*
------------- --------- --------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............... $17.61 $23.79 $29.01 $26.35 $27.72 $20.41
------------- --------- --------- ------------- --------- ---------
Net Investment Loss+ ............................... (.18) (.36) (.45) (.13) (.27) (.26)
Net Realized and Unrealized Gains (Losses)
on Securities .................................... 4.31 (5.82) (4.77) 8.39 (1.10) 7.71
------------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........................ 4.13 (6.18) (5.22) 8.26 (1.37) 7.45
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ............................ -- -- -- -- -- (.14)
------------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value ......... 4.13 (6.18) (5.22) 8.26 (1.37) 7.31
------------- --------- --------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD ..................... $21.74 $17.61 $23.79 $34.61 $26.35 $27.72
------------- --------- --------- ------------- --------- ---------
------------- --------- --------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ............................ 23.45% (25.98)% (17.99)% 31.35% (4.94)% 36.75%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ..................................... 2.33%** 2.39% 2.53%** 2.24%** 2.27% 2.38%**
Net Expenses ....................................... 2.33%** 2.39% 2.53%** 2.24%** 2.27% 2.38%**
Net Investment Loss ................................ (1.75)%** (1.70)% (2.14)%** (0.83)%** (0.94)% (1.23)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ......................... 2,351% 3,179% 2,609% 309% 744% 839%
Net Assets, End of Period (000's omitted) .......... $149 $36 $87 $8,008 $2,150 $910
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 27, 2001--PRECIOUS METALS FUND;
MAY 3, 2001--LEISURE FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ 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
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
134 & 135 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
---------------------------------------- ------------------------------------
RETAILING FUND RETAILING FUND TECHNOLOGY FUND
---------------------------------------- ------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31 SEPTEMBER 30, MARCH 31, MARCH 31,
2003++ 2003 2002* 2003++ 2003 2002*
------------- --------- -------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $7.81 $11.02 $10.68 $7.00 $10.90 $14.82
------------- --------- -------- ------------- --------- ---------
Net Investment Loss+ .............................. (.08) (.20) (.20) (.11) (.18) (.25)
Net Realized and Unrealized Gains (Losses)
on Securities ................................... 2.23 (3.01) .54 2.96 (3.72) (3.67)
------------- --------- -------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 2.15 (3.21) .34 2.85 (3.90) (3.92)
DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- --
------------- --------- -------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ 2.15 (3.21) .34 2.85 (3.90) (3.92)
------------- --------- -------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $9.96 $7.81 $11.02 $9.85 $7.00 $10.90
------------- --------- -------- ------------- --------- ---------
------------- --------- -------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ........................... 27.53% (29.13)% 3.18% 40.71% (35.78)% (26.45)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 2.33%** 2.32% 2.70%** 2.34%** 2.37% 2.43%**
Net Expenses ...................................... 2.33%** 2.32% 2.70%** 2.34%** 2.37% 2.43%**
Net Investment Loss ............................... (1.71)%** (1.89)% (2.13)%** (2.11)%** (2.07)% (2.22)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,225% 3,788% 2,030% 1,062% 1,938% 1,017%
Net Assets, End of Period (000's omitted) ......... $359 $85 $1,028 $1,144 $434 $424
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001--TECHNOLOGY FUND; MAY
9, 2001--RETAILING FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
</FN>
See Notes to Financial Statements.
136 & 137 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS
--------------------------
TELECOMMUNICATIONS FUND
--------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003+++ 2003++
------------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $9.84 $14.97
------------- ---------
Net Investment Loss+ .............................. (.06) (.09)
Net Realized and Unrealized Gains (Losses)
on Securities ................................... 2.70 (5.04)
------------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... 2.64 (5.13)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ....................... -- --
------------- ---------
Net Increase (Decrease) in Net Asset Value ........ 2.64 (5.13)
------------- ---------
NET ASSET VALUE--END OF PERIOD .................... $12.48 $9.84
------------- ---------
------------- ---------
TOTAL INVESTMENT RETURN ........................... 26.83% (34.27)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 2.33%** 2.41%
Net Expenses ...................................... 2.33%** 2.41%
Net Investment Loss ............................... (0.95)%** (0.71)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,142% 2,431%
Net Assets, End of Period (000's omitted) ......... $1,178 $774
C CLASS
---------------------------------------------------------------
TELECOMMUNICATIONS FUND TRANSPORTATION FUND
----------------------- ---------------------------------------
PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2002*++ 2003+++ 2003++ 2002*++
--------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD .............. $26.91 $14.85 $20.73 $20.04
--------- ------------- --------- ---------
Net Investment Loss+ .............................. (.24) (.13) (.27) (.24)
Net Realized and Unrealized Gains (Losses)
on Securities ................................... (11.61) 3.08 (5.61) .93
--------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ....................... (11.85) 2.95 (5.88) .69
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Realized Capital Gain ....................... (.09) -- -- --
--------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset Value ........ (11.94) 2.95 (5.88) .69
--------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD .................... $14.97 $17.80 $14.85 $20.73
--------- ------------- --------- ---------
--------- ------------- --------- ---------
TOTAL INVESTMENT RETURN ........................... (44.16)% 19.87% (28.36)% 3.44%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses .................................... 2.43%** 2.33%** 2.36% 2.59%**
Net Expenses ...................................... 2.43%** 2.33%** 2.36% 2.59%**
Net Investment Loss ............................... (1.25)%** (1.49)%** (1.51)% (1.35)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ........................ 1,192% 1,091% 2,786% 1,704%
Net Assets, End of Period (000's omitted) ......... $19 $220 $514 $654
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001--TELECOMMUNICATIONS
FUND; MAY 14, 2001--TRANSPORTATION FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ 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
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
138 & 139 SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
C CLASS C CLASS
------------------------- ---------------
UTILITIES FUND UTILITIES FUND
------------------------- ---------------
PERIOD YEAR PERIOD
ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31,
2003+++ 2003++ 2002*++
------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING OF PERIOD ............... $15.93 $25.08 $37.98
------------- --------- ---------
Net Investment Income (Loss)+ ...................... .15 .30 (.12)
Net Realized and Unrealized Gains (Losses)
on Securities .................................... 2.99 (8.91) (11.22)
------------- --------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ........................ 3.14 (8.61) (11.34)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income ............................ -- (.54) (1.56)
------------- --------- ---------
Net Increase (Decrease) in Net Asset Value ......... 3.14 (9.15) (12.90)
------------- --------- ---------
NET ASSET VALUE--END OF PERIOD ..................... $19.07 $15.93 $25.08
------------- --------- ---------
------------- --------- ---------
TOTAL INVESTMENT RETURN ............................ 19.71% (34.40)% (29.95)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ..................................... 2.34%** 2.42% 2.76%**
Net Expenses ....................................... 2.34%** 2.42% 2.76%**
Net Investment Income (Loss) ....................... 1.63%** 1.56% (0.48)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ......................... 714% 3,158% 2,418%
Net Assets, End of Period (000's omitted) .......... $8,528 $939 $192
<FN>
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 27, 2001--UTILITIES FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ 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
+++ UNAUDITED.
</FN>
See Notes to Financial Statements.
140
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") are registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as
a nondiversified, open-ended investment company, and are authorized to issue an
unlimited number of shares. The Trust offers five separate classes of shares,
Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares, and
Institutional Class Shares. Sales of shares of each Class are made without a
sales charge at the net asset value per share. C Class Shares have a 1%
Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12
months of purchase. At September 30, 2003, the Trust consisted of thirty-four
separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen
Sector Funds, and two Strategic Funds. This report covers the seventeen Sector
Funds (the "Sector Funds"), while the Money Market and Benchmark Funds and the
Strategic Funds are contained in separate reports. At September 30, 2003, none
of the Sector Funds have issued H Class or Institutional Class Shares.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Stock Exchange or American
Stock Exchange) are valued at the last quoted sales price as of close of
business on the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the
valuation date. Equity securities listed on the Nasdaq market system are valued
at the Nasdaq Official Closing Price, usually as of 4:00 p.m., Eastern Time, on
the valuation date. Listed options held by the Trust are valued at their last
bid price. Over-the-counter options held by the Trust are valued using the
average bid price obtained from one or more security dealers. The value of
futures contracts purchased and sold by the Trust is accounted for using the
unrealized gain or loss on the contracts that is determined by marking the
contracts to their current realized settlement prices. Financial futures
contracts are valued at the last quoted sales price as of 4:00 p.m. on the
valuation date. Short-term securities, if any, are valued at amortized cost,
which approximates market value. Securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under direction of the Board of Trustees or by the Advisor
using methods established or ratified by the Board of Trustees.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. Dividend income is recorded on the
ex-dividend date, net of applicable taxes withheld by foreign countries.
Interest income, including amortization of premiums and accretion of discount,
is accrued on a daily basis.
C. Interest and dividend income, most expenses, all realized gains and losses,
and all unrealized gains and losses are allocated to the classes based upon the
value of the outstanding shares in each Class. Certain costs, such as
distribution fees relating to Advisor
SEMI-ANNUAL REPORT 141
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Class Shares and H Class Shares and service and distribution fees related to C
Class Shares, are charged directly to specific classes. In addition, certain
expenses have been allocated to the individual Funds in the Trust on a pro rata
basis based upon the respective aggregate net assets value of each Fund included
in the Trust.
D. Distributions to shareholders are recorded on the ex-dividend date.
Distributions from net investment income and net realized capital gains are
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America. These
differences are primarily due to differing treatments for items such as deferral
of wash sales and post-October losses and regulated futures contracts and
options.
E. Each Sector Fund seeks capital appreciation and invests substantially all of
its assets in equity securities of companies involved in its sector. The Funds
may also purchase American Depository Receipts ("ADRs") and U.S. Government
securities, enter into repurchase agreements, and engage in futures, options and
equity swap transactions. The risks inherent in the use of futures, options and
swaps agreements include 1) adverse changes in the value of such instruments; 2)
imperfect correlation between the price of the instruments and movements in the
price of the underlying securities; 3) the possible absence of a liquid
secondary market for any particular instrument at any time; and 4) the potential
of counterparty default.
F. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays Rydex Global
Advisors, (the "Advisor"), an affiliated entity, investment advisory fees
calculated at an annualized rate of 0.85% of the average daily net assets of
each of the Sector Funds, except the Precious Metals Fund, which is 0.75% of the
average daily net assets. Certain officers and trustees of the Trust are also
officers and directors of Rydex Global Advisors.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent services to the Trust for fees calculated at an annualized rate
of 0.25% of the average daily net assets of each of the Sector Funds.
The Servicer also provides accounting services to the Trust calculated at an
annualized rate of 0.10% on the first $250 million of the average daily net
assets, 0.075% on the next $250 million of the average daily net assets, 0.05%
on the next $250 million of the average daily net assets, and 0.03% on the
average daily net assets over $750 million of each of the Sector Funds.
142
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Certain officers and trustees of the Trust are also officers and directors of
Rydex Fund Services, Inc.
The Trust has adopted a Distribution Plan and Shareholder Services Plan
applicable to its Advisor Class Shares and a Distribution Plan applicable to the
H Class Shares, for which Rydex Distributors, Inc. (the "Distributor"), an
affiliated entity, and other firms that provide distribution and/or shareholder
services ("Service Providers") may receive compensation. If a Service Provider
provides distribution services, the Trust will pay fees to the Distributor at an
annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule
12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service Provider
out of its fees. The Distributor may, at its discretion, retain a portion of
such payments to compensate itself for distribution services. If a Service
Provider provides shareholder services, the Distributor will receive fees from
the Trust at an annual rate not to exceed 0.25% of average daily net assets. The
Distributor, in turn, will pay the Service Provider out of its fees.
The Trust has adopted a separate Distribution and Shareholder Services Plan (the
"C Class Plan") applicable to its C Class Shares that allows the Funds to pay
annual distribution and service fees of 1.00% of the Funds' C Class Shares
average daily net assets. The annual 0.25% service fee compensates your
financial advisor for providing on-going services to you. The Distributor
retains the service and distribution fees on accounts with no authorized dealer
of record. The annual 0.75% distribution fee reimburses the Distributor for
paying your financial advisor an on-going sales commission. The Distributor
advances the first year's service and distribution fees. Certain officers and
trustees of the Trust are also officers and directors of Rydex Distributors,
Inc.
3. FEDERAL INCOME TAX INFORMATION
The Trust intends to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute substantially
all net investment income to its shareholders. Therefore, no Federal income tax
provision is required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for futures and options transactions, 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, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
the utilization of earnings and profits distributed to shareholders on
redemption of shares as part of the dividends paid deduction for income tax
purposes, net operating losses not utilized during the current year, and
differences in the treatment of certain notional principal contracts (e.g.
financial futures contracts). These reclassifications have no effect on net
assets or net asset values per share. Any taxable gain remaining at fiscal year
end is distributed in the following year.
SEMI-ANNUAL REPORT 143
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At September 30, 2003, 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 NET
TAX UNREALIZED UNREALIZED UNREALIZED
FUND COST GAIN LOSS GAIN (LOSS)
- ------ ----------- ----------- ---------- -----------
Banking Fund ........... $ 6,305,570 $ 2,846,302 $ -- $ 2,846,302
Basic Materials Fund ... 5,671,053 1,624,936 (7,478) 1,617,458
Biotechnology Fund ..... 113,940,573 64,931,218 (812,908) 64,118,310
Consumer Products Fund . 17,349,578 1,983,505 (32,575) 1,950,930
Electronics Fund ....... 27,923,688 20,252,725 (276,125) 19,976,600
Energy Fund ............ 13,577,994 3,231,679 -- 3,231,679
Energy Services Fund ... 13,409,849 4,943,935 (30,545) 4,913,390
Financial Services Fund 23,172,551 8,351,243 (28,696) 8,322,547
Health Care Fund ....... 21,551,586 7,600,212 (136,328) 7,463,884
Internet Fund .......... 12,902,957 1,876,806 (92,955) 1,783,851
Leisure Fund ........... 3,110,753 1,577,565 (10,227) 1,567,338
Precious Metals Fund ... 130,314,432 43,156,916 (119,710) 43,037,206
Retailing Fund ......... 11,380,974 6,506,521 (27,969) 6,478,552
Technology Fund ........ 37,482,233 6,725,286 (571,655) 6,153,631
Telecommunications Fund 6,056,503 3,017,443 (31,552) 2,985,891
Transportation Fund .... 8,435,601 1,772,264 (481) 1,771,783
Utilities Fund ......... 36,510,166 4,914,773 (9,357) 4,905,416
4. REPURCHASE AGREEMENTS
The Trust transfers univested cash balances into a single joint account, along
with uninvested cash of the Rydex Dynamic Funds, a separate Trust, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by obligations of the U. S. Treasury or U.S. Government Agencies.
The collateral is in the possession of the Trusts' custodians and is evaluated
daily to ensure that its market value exceeds the delivery value of the
repurchase agreements at maturity.
The repurchase agreements that were executed by the joint account and
outstanding as of September 30, 2003 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------ ------------------ ---------- ------------ --------------
Salomon Smith Barney, Inc. 0.90% due 10/1/03 $240,000,000 $240,000,000 $240,005,918
U.S. Bank NA ............. 0.96% due 10/1/03 170,000,000 170,000,000 170,004,471
Paine Webber, Inc. ....... 0.93% due 10/1/03 170,000,000 170,000,000 170,004,332
Morgan Stanley, Inc. ..... 0.91% due 10/1/03 170,000,000 170,000,000 170,004,238
Lehman Brothers, Inc. .... 0.94% due 10/1/03 12,101,668 12,101,668 12,101,980
------------ ------------
$762,101,668 $762,120,939
------------ ------------
------------ ------------
144
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
As of September 30, 2003, the collateral for the repurchase agreements in the
joint account was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- ------------- -------------- --------- ------------
U. S. Treasury Bonds ........... 3.875% - 5.375% $268,291,421 $312,444,509
U. S. Treasury Notes ........... 0.000% - 7.000% 257,405,610 293,257,361
Ginnie Mae ..................... 4.500% - 5.000% 174,032,279 173,848,577
------------
$779,550,447
------------
------------
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 credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
5. SECURITIES TRANSACTIONS
During the period ended September 30, 2003, purchases and sales of investment
securities, excluding short-term and temporary cash investments, were:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS
FUND FUND FUND FUND FUND
----------- ------------ ------------ ----------- ------------
Purchases .... $138,217,912 $108,877,220 $527,103,504 $72,725,635 $494,518,258
Sales ........ $139,154,325 $109,200,315 $524,893,486 $60,609,819 $504,502,002
ENERGY FINANCIAL HEALTH
ENERGY SERVICES SERVICES CARE INTERNET
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
Purchases .... $141,312,740 $241,114,852 $317,729,135 $243,245,805 $148,220,997
Sale ......... $138,384,739 $234,431,694 $315,153,036 $256,842,582 $139,231,353
TELE-
PRECIOUS COMMUN-
LEISURE METALS RETAILING TECHNOLOGY ICATIONS
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
Purchases .... $180,961,859 $477,333,435 $363,069,604 $472,292,040 $145,536,538
Sales ........ $183,188,015 $408,344,024 $368,612,880 $466,861,107 $149,438,017
TRANS-
PORTATION UTILITIES
FUND FUND
----------- ------------
Purchases .... $98,642,556 $194,684,273
Sales ........ $94,527,377 $170,596,106
SEMI-ANNUAL REPORT 145
- --------------------------------------------------------------------------------
This page intentionally left blank.
146 & 147 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of shares.
Transactions in shares for the period ended September 30, 2003 were:
INVESTOR CLASS:
BASIC BIO- CONSUMER ENERGY
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND FUND FUND FUND
----------- ---------- ----------- ---------- ----------- ----------- -----------
Shares Purchased .................... 15,806,322 6,641,530 33,167,841 2,288,289 55,554,676 14,699,985 17,148,594
Purchased through Dividend Reinvestment -- -- -- -- -- -- --
----------- ---------- ----------- ---------- ----------- ----------- -----------
Total Purchased ..................... 15,806,322 6,641,530 33,167,841 2,288,289 55,554,676 14,699,985 17,148,594
Shares Redeemed ..................... (15,869,569) (6,947,273) (32,912,467) (2,441,153) (56,312,781) (13,753,610) (18,844,878)
----------- ---------- ----------- ---------- ----------- ----------- -----------
Net Shares Purchased (Redeemed) ..... (63,247) (305,743) 255,374 (152,864) (758,105) 946,375 (1,696,284)
----------- ---------- ----------- ---------- ----------- ----------- -----------
----------- ---------- ----------- ---------- ----------- ----------- -----------
FINANCIAL HEALTH
SERVICES CARE
FUND FUND
----------- -----------
Shares Purchased .................... 41,026,171 21,753,850
Purchased through Dividend Reinvestment -- --
----------- -----------
Total Purchased ..................... 41,026,171 21,753,850
Shares Redeemed ..................... (40,650,300)(22,248,446)
----------- -----------
Net Shares Purchased (Redeemed) ..... 375,871 (494,596)
----------- -----------
----------- -----------
TELE-
PRECIOUS COMMU- TRANS-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS PORTATION
FUND FUND FUND FUND FUND FUND FUND
---------- ---------- ----------- ----------- ----------- ---------- ----------
Shares Purchased .................... 5,601,146 14,837,140 29,575,883 47,307,446 33,077,629 15,675,212 8,550,086
Purchased through Dividend Reinvestment -- -- -- -- -- -- --
---------- ---------- ----------- ----------- ----------- ---------- ----------
Total Purchased ..................... 5,601,146 14,837,140 29,575,883 47,307,446 33,077,629 15,675,212 8,550,086
Shares Redeemed ..................... (5,416,563) (15,043,709) (27,801,492) (46,980,328) (32,450,681) (17,851,542) (8,503,766)
---------- ---------- ----------- ----------- ----------- ---------- ----------
Net Shares Purchased (Redeemed) ..... 184,583 (206,569) 1,774,391 327,118 626,948 (2,176,330) 46,320
---------- ---------- ----------- ----------- ----------- ---------- ----------
---------- ---------- ----------- ----------- ----------- ---------- ----------
UTILITIES
FUND
-----------
Shares Purchased .................... 12,688,061
Purchased through Dividend Reinvestment --
-----------
Total Purchased ..................... 12,688,061
Shares Redeemed ..................... (13,307,793)
-----------
Net Shares Redeemed ................. (619,732)
-----------
-----------
ADVISOR CLASS:
BASIC BIO- CONSUMER ENERGY
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND FUND FUND FUND
---------- ---------- ---------- --------- ----------- ---------- ----------
Shares Purchased .................... 3,724,699 1,466,664 3,922,246 2,140,394 7,478,004 2,814,774 1,266,120
Purchased through Dividend Reinvestment -- -- -- -- -- -- --
---------- ---------- ---------- --------- ----------- ---------- ----------
Total Purchased ..................... 3,724,699 1,466,664 3,922,246 2,140,394 7,478,004 2,814,774 1,266,120
Shares Redeemed ..................... (3,695,384) (1,857,679) (4,526,509) (1,896,747) (7,675,183) (3,486,514) (1,546,742)
---------- ---------- ---------- --------- ----------- ---------- ----------
Net Shares Purchased (Redeemed) ..... 29,315 (391,015) (604,263) 243,647 (197,179) (671,740) (280,622)
---------- ---------- ---------- --------- ----------- ---------- ----------
---------- ---------- ---------- --------- ----------- ---------- ----------
FINANCIAL HEALTH
SERVICES CARE
FUND FUND
---------- ----------
Shares Purchased .................... 4,056,396 5,424,247
Purchased through Dividend Reinvestment -- --
---------- ----------
Total Purchased ..................... 4,056,396 5,424,247
Shares Redeemed ..................... (3,971,965) (6,422,211)
---------- ----------
Net Shares Purchased (Redeemed) ..... 84,431 (997,964)
---------- ----------
---------- ----------
TELE-
PRECIOUS COMMU- TRANS-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS PORTATION
FUND FUND FUND FUND FUND FUND FUND
---------- ---------- -------- ---------- ---------- --------- ---------
Shares Purchased .................... 1,253,353 2,899,946 529,122 5,554,287 6,519,738 819,298 3,449,624
Purchased through Dividend Reinvestment -- -- -- -- -- -- --
---------- ---------- -------- ---------- ---------- --------- ---------
Total Purchased ..................... 1,253,353 2,899,946 529,122 5,554,287 6,519,738 819,298 3,449,624
Shares Redeemed ..................... (1,125,152) (3,498,335) (392,943) (6,467,014) (6,447,525) (1,028,778) (3,855,833)
---------- ---------- -------- ---------- ---------- --------- ---------
Net Shares Purchased (Redeemed) ..... 128,201 (598,389) 136,179 (912,727) 72,213 (209,480) (406,209)
---------- ---------- -------- ---------- ---------- --------- ---------
---------- ---------- -------- ---------- ---------- --------- ---------
UTILITIES
FUND
---------
Shares Purchased .................... 5,362,023
Purchased through Dividend Reinvestment --
---------
Total Purchased ..................... 5,362,023
Shares Redeemed ..................... (5,329,108)
---------
Net Shares Purchased ................ 32,915
---------
---------
148 & 149 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
---------- --------- ---------- -------- ----------- --------
Shares Purchased ..................... 1,993,690 321,342 1,254,009 213,857 3,054,997 655,710
Purchased through Dividend Reinvestment -- -- -- -- -- --
---------- --------- ---------- -------- ----------- --------
Total Purchased ...................... 1,993,690 321,342 1,254,009 213,857 3,054,997 655,710
Shares Redeemed ...................... (1,980,546) (346,150) (1,263,390) (231,189) (3,081,482) (682,438)
---------- --------- ---------- -------- ----------- --------
Net Shares Purchased (Redeemed) ...... 13,144 (24,808) (9,381) (17,332) (26,485) (26,728)
---------- --------- ---------- -------- ----------- --------
---------- --------- ---------- -------- ----------- --------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
-------- --------- ---------
Shares Purchased ..................... 343,890 816,501 2,020,853
Purchased through Dividend Reinvestment -- -- --
-------- --------- ---------
Total Purchased ...................... 343,890 816,501 2,020,853
Shares Redeemed ...................... (377,067) (761,043) (1,944,586)
-------- --------- ---------
Net Shares Purchased (Redeemed) ...... (33,177) 55,458 76,267
-------- --------- ---------
-------- --------- ---------
TELE-
PRECIOUS COMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
---------- --------- ---------- -------- ----------- --------
Shares Purchased ..................... 259,464 412,273 1,053,892 1,209,414 21,152,383 1,126,115
Purchased through Dividend Reinvestment -- -- -- -- -- --
---------- --------- ---------- ---------- ----------- ----------
Total Purchased ...................... 259,464 412,273 1,053,892 1,209,414 21,152,383 1,126,115
Shares Redeemed ...................... (255,142) (411,597) (904,163) (1,184,250) (21,098,213) (1,267,620)
---------- --------- ---------- ---------- ----------- ----------
Net Shares Purchased (Redeemed) ...... 4,322 676 149,729 25,164 54,170 (141,505)
---------- --------- ---------- ---------- ----------- ----------
---------- --------- ---------- ---------- ----------- ----------
TRANS-
PORTATION UTILITIES
FUND FUND
-------- ---------
Shares Purchased ..................... 379,615 1,361,795
Purchased through Dividend Reinvestment -- --
--------- -----------
Total Purchased ...................... 379,615 1,361,795
Shares Redeemed ...................... (471,009) (1,091,502)
--------- -----------
Net Shares Purchased (Redeemed) ...... (91,394) 270,293
--------- -----------
--------- -----------
Transactions in shares for the period ended March 31, 2003, were:
INVESTOR CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ------------ -----------
Shares Purchased ..................... 53,790,341 23,176,880 59,629,471 13,698,087 150,628,344 36,631,701
Purchased through Dividend Reinvestment 33,658 2,832 -- 1,451 -- 589
----------- ----------- ----------- ----------- ------------ -----------
Total Purchased ...................... 53,823,999 23,179,712 59,629,471 13,699,538 150,628,344 36,632,290
Shares Redeemed ...................... (56,177,271) (24,865,080) (62,014,921) (14,421,649) (152,409,245) (38,920,384)
----------- ----------- ----------- ----------- ------------ -----------
Net Shares Redeemed .................. (2,353,272) (1,685,368) (2,385,450) (722,111) (1,780,901) (2,288,094)
----------- ----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ----------- ------------ -----------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
----------- ------------ -----------
Shares Purchased ..................... 18,199,897 110,594,671 71,257,046
Purchased through Dividend Reinvestment -- 3,076 --
----------- ------------ -----------
Total Purchased ...................... 18,199,897 110,597,747 71,257,046
Shares Redeemed ...................... (19,641,645) (112,186,371) (71,613,117)
----------- ------------ -----------
Net Shares Redeemed .................. (1,441,748) (1,588,624) (356,071)
----------- ------------ -----------
----------- ------------ -----------
TELE-
PRECIOUS COMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ------------ -----------
Shares Purchased ..................... 9,826,143 16,246,563 44,600,033 105,648,234 89,643,821 41,841,592
Purchased through Dividend Reinvestment -- -- -- -- -- --
----------- ----------- ----------- ----------- ------------ -----------
Total Purchased ...................... 9,826,143 16,246,563 44,600,033 105,648,234 89,643,821 41,841,592
Shares Redeemed ...................... (9,765,179) (16,593,130) (43,929,716) (107,225,305) (91,726,006) (41,229,651)
----------- ----------- ----------- ----------- ------------ -----------
Net Shares Purchased (Redeemed) ...... 60,964 (346,567) 670,317 (1,577,071) (2,082,185) 611,941
----------- ----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ----------- ------------ -----------
TRANS-
PORTATION UTILITIES
FUND FUND
----------- -----------
Shares Purchased ..................... 17,618,057 28,888,257
Purchased through Dividend Reinvestment -- 17,141
----------- -----------
Total Purchased ...................... 17,618,057 28,905,398
Shares Redeemed ...................... (18,427,906) (29,339,007)
----------- -----------
Net Shares Redeemed .................. (809,849) (433,609)
----------- -----------
----------- -----------
150 & 151 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ADVISOR CLASS:
BASIC BIO- CONSUMER ENERGY
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ---------- ----------- -----------
Shares Purchased ..................... 16,243,287 4,207,440 7,687,002 5,716,227 9,483,776 10,173,332 8,927,113
Purchased through Dividend Reinvestment 28,865 253 -- 1,750 -- 838 --
----------- ---------- ---------- ---------- ---------- ----------- ----------
Total Purchased ...................... 16,272,152 4,207,693 7,687,002 5,717,977 9,483,776 10,174,170 8,927,113
Shares Redeemed ...................... (18,984,895) (5,354,525) (6,896,705) (6,909,980) (9,118,402) (10,225,689) (9,810,164)
----------- ---------- ---------- ---------- ---------- ----------- ----------
Net Shares Purchased (Redeemed) ...... (2,712,743) (1,146,832) 790,297 (1,192,003) 365,374 (51,519) (883,051)
----------- ---------- ---------- ---------- ---------- ----------- ----------
----------- ---------- ---------- ---------- ---------- ----------- ----------
FINANCIAL HEALTH
SERVICES CARE
FUND FUND
---------- -----------
Shares Purchased ..................... 6,397,464 13,305,753
Purchased through Dividend Reinvestment 4,165 --
---------- -----------
Total Purchased ...................... 6,401,629 13,305,753
Shares Redeemed ...................... (8,473,228) (13,382,932)
---------- -----------
Net Shares Purchased (Redeemed) ...... (2,071,599) (77,179)
---------- -----------
---------- -----------
TELE-
COMMU- TRANS-
INTERNET LEISURE RETAILING TECHNOLOGY NICATIONS PORTATION UTILITIES
FUND FUND FUND FUND FUND FUND FUND
---------- ---------- ---------- ----------- ---------- ---------- ----------
Shares Purchased ..................... 3,197,287 2,412,445 7,022,075 11,792,419 9,146,007 4,960,127 4,706,225
Purchased through Dividend Reinvestment -- -- -- -- -- -- 3,428
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total Purchased ...................... 3,197,287 2,412,445 7,022,075 11,792,419 9,146,007 4,960,127 4,709,653
Shares Redeemed ...................... (3,174,642) (2,605,037) (8,558,981) (11,784,605) (9,117,683) (5,904,770) (4,810,484)
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net Shares Purchased (Redeemed) ...... 22,645 (192,592) (1,536,906) 7,814 28,324 (944,643) (100,831)
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
C CLASS:
BASIC BIO- CONSUMER ENERGY
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ---------- ----------- -----------
Shares Purchased ..................... 1,907,925 440,990 1,763,096 469,107 5,466,495 1,324,101 751,233
Purchased through Dividend Reinvestment 1,166 34 -- 154 -- 19 --
----------- ----------- ----------- ----------- ---------- ----------- -----------
Total Purchased ...................... 1,909,091 441,024 1,763,096 469,261 5,466,495 1,324,120 751,233
Shares Redeemed ...................... (1,900,146) (445,429) (1,686,109) (479,829) (5,370,678) (1,188,921) (744,427
----------- ----------- ----------- ----------- ---------- ----------- -----------
Net Shares Purchased (Redeemed) ...... 8,945 (4,405) 76,987 (10,568) 95,817 135,199 6,806
----------- ----------- ----------- ----------- ---------- ----------- -----------
----------- ----------- ----------- ----------- ---------- ----------- -----------
FINANCIAL HEALTH
SERVICES CARE
FUND FUND
---------- ----------
Shares Purchased ..................... 1,484,264 3,155,903
Purchased through Dividend Reinvestment 126 --
---------- ----------
Total Purchased ...................... 1,484,390 3,155,903
Shares Redeemed ...................... (1,507,023) (3,205,658)
---------- ----------
Net Shares Purchased (Redeemed) ...... (22,633) (49,755)
---------- ----------
---------- ----------
TELE-
PRECIOUS COMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
---------- ---------- ---------- ----------- ---------- ----------
Shares Purchased ..................... 793,086 266,172 974,657 1,400,441 6,719,376 1,326,761
Purchased through Dividend Reinvestment -- -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ----------
Total Purchased ...................... 793,086 266,172 974,657 1,400,441 6,719,376 1,326,761
Shares Redeemed ...................... (786,341) (267,756) (925,885) (1,482,800) (6,696,317) (1,249,369)
---------- ---------- ---------- ----------- ---------- ----------
Net Shares Purchased (Redeemed) ...... 6,745 (1,584) 48,772 (82,359) 23,059 77,392
---------- ---------- ---------- ----------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ----------
TRANS-
PORTATION UTILITIES
FUND FUND
---------- ----------
Shares Purchased ..................... 457,416 2,047,356
Purchased through Dividend Reinvestment -- 692
---------- ----------
Total Purchased ...................... 457,416 2,048,048
Shares Redeemed ...................... (454,386) (1,996,727)
---------- ----------
Net Shares Purchased ................ 3,030 51,321
---------- ----------
---------- ----------
152 & 153 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Transactions in dollars for the period ended September 30, 2003 were:
INVESTOR CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
Shares Purchased ....................... $132,118,822 $129,303,464 $588,622,140 $ 49,882,220 $597,463,327 $139,980,195
Purchased through Dividend Reinvestment -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Purchased ........................ 132,118,822 129,303,464 588,622,140 49,882,220 597,463,327 139,980,195
Shares Redeemed ........................ (132,827,244) (127,648,326) (575,984,264) (50,059,465) (605,273,748) (130,636,972)
------------ ------------ ------------ ------------ ------------ ------------
Net Change ............................. $ (708,422) $ 1,655,138 $ 12,637,876 $ (177,245) $(7,810,421) $ 9,343,223
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
------------ ------------ -------------
Shares Purchased ....................... $298,011,228 $365,197,584 $ 230,794,265
Purchased through Dividend Reinvestment -- -- --
------------ ------------ -------------
Total Purchased ........................ 298,011,228 365,197,584 230,794,265
Shares Redeemed ........................ (290,849,600) (362,312,648) (235,020,788)
------------ ------------ -------------
Net Change ............................. $ 7,161,628 $ 2,884,936 $ (4,226,523)
------------ ------------ -------------
------------ ------------ -------------
TELE-
PRECIOUS COMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
Shares Purchased ....................... $149,319,126 $182,852,131 $948,204,482 $450,473,567 $300,521,518 $168,382,538
Purchased through Dividend Reinvestment -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Purchased ........................ 149,319,126 182,852,131 948,204,482 450,473,567 300,521,518 168,382,538
Shares Redeemed ........................ (144,191,197) (181,588,160) (887,875,405) (447,054,113) (296,635,189) (172,040,813)
------------ ------------ ------------ ------------ ------------ ------------
Net Change ............................. $ 5,127,929 $ 1,263,971 $ 60,329,077 $ 3,419,454 $ 3,886,329 $ (3,658,275)
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
TRANS-
PORTATION UTILITIES
FUND FUND
------------ ------------
Shares Purchased ....................... $ 90,799,633 $188,111,649
Purchased through Dividend Reinvestment -- --
------------ ------------
Total Purchased ........................ 90,799,633 188,111,649
Shares Redeemed ........................ (87,901,825) (176,679,585)
------------ ------------
Net Change ............................. $ 2,897,808 $ 11,432,064
------------ ------------
------------ ------------
ADVISOR CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
Shares Purchased ....................... $ 28,550,685 $ 27,603,655 $ 64,524,370 $ 31,930,535 $ 80,268,452 $ 26,594,945
Purchased through Dividend Reinvestment -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Purchased ........................ 28,550,685 27,603,655 64,524,370 31,930,535 80,268,452 26,594,945
Shares Redeemed ........................ (28,952,368) (29,836,858) (73,072,673) (19,517,909) (81,145,030) (32,961,023)
------------ ------------ ------------ ------------ ------------ ------------
Net Change ............................. $ (401,683) $ (2,233,203) $ (8,548,303) $ 12,412,626 $ (876,578) $ (6,366,078)
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
------------ ------------ -----------
Shares Purchased ....................... $ 21,590,593 $ 34,455,421 $56,568,100
Purchased through Dividend Reinvestment -- -- --
------------ ------------ -----------
Total Purchased ........................ 21,590,593 34,455,421 56,568,100
Shares Redeemed ........................ (22,336,587) (34,999,107) (66,156,398)
------------ ------------ -----------
Net Change ............................. $ (745,994) $ (543,686) $(9,588,298)
------------ ------------ -----------
------------ ------------ -----------
TELE-
PRECIOUS COMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
Shares Purchased ....................... $ 33,867,320 $ 41,887,878 $ 18,612,744 $ 51,778,988 $ 61,304,046 $ 9,348,551
Purchased through Dividend Reinvestment -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Purchased ........................ 33,867,320 41,887,878 18,612,744 51,778,988 61,304,046 9,348,551
Shares Redeemed ........................ (29,803,516) (45,468,017) (13,932,979) (60,686,428) (58,669,253) (9,610,815)
------------ ------------ ------------ ------------ ------------ ------------
Net Change ............................. $ 4,063,804 $ (3,580,139) $ 4,679,765 $ (8,907,440) $ 2,634,793 $ (262,264)
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
TRANS-
PORTATION UTILITIES
FUND FUND
------------ ------------
Shares Purchased ....................... $ 40,617,624 $ 61,570,613
Purchased through Dividend Reinvestment -- --
------------ ------------
Total Purchased ........................ 40,617,624 61,570,613
Shares Redeemed ........................ (38,872,550) (56,591,334)
------------ ------------
Net Change ............................. $ 1,745,074 $ 4,979,279
------------ ------------
------------ ------------
154 & 155 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
C CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS
FUND FUND FUND FUND FUND
------------ ------------- -------------- ------------- --------------
Shares Purchased ..................... $ 16,507,092 $ 6,250,181 $ 20,994,276 $ 4,821,180 $ 32,410,835
Purchased through Dividend Reinvestment -- -- -- -- --
------------ ------------- -------------- ------------- --------------
Total Purchased ...................... 16,507,092 6,250,181 20,994,276 4,821,180 32,410,835
Shares Redeemed ...................... (16,398,433) (6,047,974) (20,727,022) (4,760,534) (32,997,119)
------------ ------------- -------------- ------------- --------------
Net Change ........................... $ 108,659 $ 202,207 $ 267,254 $ 60,646 $ (586,284)
------------ ------------- -------------- ------------- --------------
------------ ------------- -------------- ------------- --------------
ENERGY FINANCIAL HEALTH
ENERGY SERVICES SERVICES CARE
FUND FUND FUND FUND
------------ ------------- ------------ ------------
Shares Purchased ..................... $ 6,265,615 $ 5,891,098 $ 6,916,678 $ 21,740,339
Purchased through Dividend Reinvestment -- -- -- --
------------ ------------- ------------ ------------
Total Purchased ...................... 6,265,615 5,891,098 6,916,678 21,740,339
Shares Redeemed ...................... (6,414,132) (5,096,506) (6,458,440) (21,131,910)
------------ ------------- ------------ ------------
Net Change ........................... $ (148,517) $ 794,592 $ 458,238 $ 608,429
------------ ------------- ------------ ------------
------------ ------------- ------------ ------------
PRECIOUS
INTERNET LEISURE METALS RETAILING TECHNOLOGY
FUND FUND FUND FUND FUND
------------ ------------- -------------- ------------- --------------
Shares Purchased ..................... $ 6,982,291 $ 6,753,829 $ 33,282,199 $ 11,249,538 $ 192,430,471
Purchased through Dividend Reinvestment -- -- -- -- --
------------ ------------- -------------- ------------- --------------
Total Purchased ...................... 6,982,291 6,753,829 33,282,199 11,249,538 192,430,471
Shares Redeemed ...................... (6,835,525) (6,652,986) (28,275,789) (11,266,641) (192,601,740)
------------ ------------- -------------- ------------- --------------
Net Change ........................... $ 146,766 $ 100,843 $ 5,006,410 $ (17,103) $ (171,269)
------------ ------------- -------------- ------------- --------------
------------ ------------- -------------- ------------- --------------
TELE-
COMMU- TRANS-
NICATIONS PORTATION UTILITIES
FUND FUND FUND
------------ ------------- ------------
Shares Purchased ..................... $ 13,020,605 $ 5,789,662 $23,177,070
Purchased through Dividend Reinvestment -- -- --
------------ ------------- ------------
Total Purchased ...................... 13,020,605 5,789,662 23,177,070
Shares Redeemed ...................... (12,842,484) (6,117,575) (15,872,808)
------------ ------------- ------------
Net Change ........................... $ 178,121 $ (327,913) $ 7,304,262
------------ ------------- ------------
------------ ------------- ------------
Transactions in dollars for the period ended March 31, 2003 were:
INVESTOR CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS
FUND FUND FUND FUND FUND
------------ ------------- -------------- ------------- --------------
Shares Purchased ..................... $445,827,706 $482,561,832 $ 873,455,045 $ 324,057,874 $1,522,438,055
Purchased through Dividend Reinvestment 261,521 53,699 -- 32,911 --
------------ ------------- -------------- ------------- --------------
Total Purchased ...................... 446,089,227 482,615,531 873,455,045 324,090,785 1,522,438,055
Shares Redeemed ...................... (463,817,307) (514,641,516) (903,789,059) (339,391,595) (1,545,768,499)
------------ ------------- -------------- ------------- --------------
Net Change ........................... $(17,728,080) $(32,025,985) $ (30,334,014) $ (15,300,810) $ (23,330,444)
------------ ------------- -------------- ------------- --------------
------------ ------------- -------------- ------------- --------------
ENERGY FINANCIAL HEALTH
ENERGY SERVICES SERVICES CARE
FUND FUND FUND FUND
------------ ------------- ------------ ------------
Shares Purchased ..................... $346,034,744 $344,775,885 $946,033,380 $687,229,053
Purchased through Dividend Reinvestment 5,209 -- 25,989 --
------------ ------------- ------------ ------------
Total Purchased ...................... 346,039,953 344,775,885 946,059,369 687,229,053
Shares Redeemed ...................... (367,801,763) (372,587,206) (957,476,158) (687,154,016)
------------ ------------- ------------ ------------
Net Change ........................... $(21,761,810) $(27,811,321) $(11,416,789) $ 75,037
------------ ------------- ------------ ------------
------------ ------------- ------------ ------------
PRECIOUS
INTERNET LEISURE METALS RETAILING TECHNOLOGY
FUND FUND FUND FUND FUND
------------ ------------- -------------- ------------- --------------
Shares Purchased ..................... $208,471,129 $ 350,405,768 $1,285,154,394 $ 970,145,805 $ 695,156,775
Purchased through Dividend Reinvestment -- -- -- -- --
------------ ------------- -------------- ------------- --------------
Total Purchased ...................... 208,471,129 350,405,768 1,285,154,394 970,145,805 695,156,775
Shares Redeemed ...................... (207,528,245) (356,786,581) (1,257,328,625) (983,180,224) (714,120,317)
------------ ------------- -------------- ------------- --------------
Net Change ........................... $ 942,884 $ (6,380,813) $ 27,825,769 $ (13,034,419) $ (18,963,542)
------------ ------------- -------------- ------------- --------------
------------ ------------- -------------- ------------- --------------
TELE-
COMMU- TRANS-
NICATIONS PORTATION UTILITIES
FUND FUND FUND
------------ ------------- ------------
Shares Purchased ..................... $451,816,605 $ 317,550,530 $527,908,429
Purchased through Dividend Reinvestment -- -- 284,885
------------ ------------- ------------
Total Purchased ...................... 451,816,605 317,550,530 528,193,314
Shares Redeemed ...................... (442,375,031) (329,571,936) (536,758,603)
------------ ------------- ------------
Net Change ........................... $ 9,441,574 $ (12,021,406) $ (8,565,289)
------------ ------------- ------------
------------ ------------- ------------
156 & 157 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
ADVISOR CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
----------- ------------ ------------ ------------- ------------ ------------
Shares Purchased $132,679,487 $ 85,554,061 $105,695,226 $ 135,252,100 $ 88,503,612 $95,385,337
Purchased through Dividend Reinvestment . 217,351 4,701 -- 38,954 -- 7,277
------------ ------------ ------------ ------------- ------------ ------------
Total Purchased ......................... 132,896,838 85,558,762 105,695,226 135,291,054 88,503,612 95,392,614
Shares Redeemed ......................... (152,116,630) (109,813,788) (93,483,378) (161,132,182) (84,649,411) (94,658,264)
------------ ------------ ------------ ------------- ------------ ------------
Net Change .............................. $(19,219,792) $(24,255,026) $ 12,211,848 $(25,841,128) $ 3,854,201 $ 734,350
------------ ------------ ------------ ------------- ------------ ------------
------------ ------------ ------------ ------------- ------------ ------------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
------------ ------------ ------------
Shares Purchased $166,344,712 $ 56,995,595 $121,776,181
Purchased through Dividend Reinvestment . -- 34,690 --
------------ ------------ ------------
Total Purchased ......................... 166,344,712 57,030,285 121,776,181
Shares Redeemed ......................... (180,400,292) (75,253,310) (122,710,756)
------------ ------------ ------------
Net Change .............................. $(14,055,580) $(18,223,025) $ (934,575)
------------ ------------ ------------
------------ ------------ ------------
TELE-
COMMU- TRANS-
INTERNET LEISURE RETAILING TECHNOLOGY NICATIONS PORTATION
FUND FUND FUND FUND FUND FUND
----------- ---------- ----------- ----------- ------------ ------------
Shares Purchased ........................ $ 70,134,024 $52,911,899 $ 63,273,813 $ 89,067,112 $ 94,812,121 $ 80,017,567
Purchased through Dividend Reinvestment . -- -- -- -- -- --
----------- ---------- ----------- ----------- ------------ ------------
Total Purchased ......................... 70,134,024 52,911,899 63,273,813 89,067,112 94,812,121 80,017,567
Shares Redeemed ......................... (67,064,784) (58,409,721) (81,283,745) (90,319,054) (95,071,065) (97,007,029)
----------- ---------- ----------- ----------- ------------ ------------
Net Change .............................. $ 3,069,240 $(5,497,822) $(18,009,932) $ (1,251,942) $ (258,944) $(16,989,462)
----------- ---------- ----------- ----------- ------------ ------------
----------- ---------- ----------- ----------- ------------ ------------
UTILITIES
FUND
-----------
Shares Purchased ........................ $82,313,495
Purchased through Dividend Reinvestment . 56,158
-----------
Total Purchased ......................... 82,369,653
Shares Redeemed ......................... (83,957,597)
-----------
Net Change .............................. $(1,587,944)
-----------
-----------
C CLASS:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
------------ ---------- ----------- ----------- ------------ ------------
Shares Purchased ........................ $ 15,840,535 $9,180,208 $24,842,016 $11,244,919 $ 48,835,096 $ 12,067,558
Purchased through Dividend Reinvestment . 8,881 638 -- 3,455 -- 164
------------ ---------- ----------- ----------- ------------ ------------
Total Purchased ......................... 15,849,416 9,180,846 24,842,016 11,248,374 48,835,096 12,067,722
Shares Redeemed ......................... (15,788,107) (9,170,454) (23,626,946) (11,344,804) (46,848,202) (10,813,439)
------------ ---------- ----------- ----------- ------------ ------------
Net Change .............................. $ 61,309 $ 10,392 $ 1,215,070 $ (96,430) $ 1,986,894 $ 1,254,283
------------ ---------- ----------- ----------- ------------ ------------
------------ ---------- ----------- ----------- ------------ ------------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
----------- ------------ ------------
Shares Purchased ........................ $14,761,207 $ 12,204,616 $ 29,431,097
Purchased through Dividend Reinvestment . -- 1,050 --
----------- ------------ ------------
Total Purchased ......................... 14,761,207 12,205,666 29,431,097
Shares Redeemed ......................... (14,326,258) (12,546,977) (29,748,669)
----------- ------------ ------------
Net Change .............................. $ 434,949 $ (341,311) $ (317,572)
----------- ------------ ------------
----------- ------------ ------------
TELE-
PRECIOUS COMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
----------- ---------- ----------- ----------- ------------ ------------
Shares Purchased ........................ $16,743,908 $5,979,399 $28,203,728 $13,329,032 $ 50,454,993 $ 14,297,437
Purchased through Dividend Reinvestment . -- -- -- -- -- --
----------- ---------- ----------- ----------- ------------ ------------
Total Purchased ......................... 16,743,908 5,979,399 28,203,728 13,329,032 50,454,993 14,297,437
Shares Redeemed ......................... (16,786,993) (5,898,080) (26,905,940) (14,232,153) (50,142,827) (13,413,776)
----------- ---------- ----------- ----------- ------------ ------------
Net Change .............................. $ (43,085) $ 81,319 $ 1,297,788 $ (903,121) $ 312,166 $ 883,661
----------- ---------- ----------- ----------- ------------ ------------
----------- ---------- ----------- ----------- ------------ ------------
TRANS-
PORTATION UTILITIES
FUND FUND
----------- ------------
Shares Purchased ........................ $ 7,958,722 $ 36,006,588
Purchased through Dividend Reinvestment . -- 11,226
----------- ------------
Total Purchased ......................... 7,958,722 36,017,814
Shares Redeemed ......................... (8,006,862) (34,529,907)
----------- ------------
Net Change .............................. $ (48,140) $ 1,487,907
----------- ------------
----------- ------------
158 & 159 SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
7. NET ASSETS
At September 30, 2003, net assets consisted of:
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------ ------------
Paid-In-Capital ............................ $57,523,218 $ 29,517,185 $ 350,357,333 $ 34,363,252 $ 203,094,131 $ 37,083,440
Undistributed Net Investment Income (Loss) . 457,145 75,801 (1,210,290) 45,758 (463,080) 58,108
Accumulated Net Realized Loss on Investments (50,157,696) (23,312,425) (210,043,284) (16,547,681) (171,787,698) (20,892,679)
Net Unrealized Appreciation on Investments . 1,396,423 899,565 41,278,739 1,478,387 16,598,707 823,508
------------ ------------ ------------- ------------ ------------ ------------
Net Assets ................................. $ 9,219,090 $ 7,180,126 $ 180,382,498 $ 19,339,716 $ 47,442,060 $ 17,072,377
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
ENERGY FINANCIAL HEALTH
SERVICES SERVICES CARE
FUND FUND FUND
------------ ------------ ------------
Paid-In-Capital ............................ $ 98,104,186 $ 83,273,936 $ 60,493,819
Undistributed Net Investment Income (Loss) . (127,895) 348,266 (180,306)
Accumulated Net Realized Loss on Investments (82,379,555) (56,456,019) (36,384,469)
Net Unrealized Appreciation on Investments . 3,264,111 4,568,197 5,319,167
------------ ------------ ------------
Net Assets ................................. $ 18,860,847 $ 31,734,380 $ 29,248,211
------------ ------------ ------------
------------ ------------ ------------
PRECIOUS TELECOMMU-
INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------ ------------
Paid-In-Capital ............................ $ 51,246,283 $ 21,584,741 $ 216,452,293 $ 53,547,945 $120,984,333 $ 48,841,547
Undistributed Net Investment Income (Loss) . (114,748) (46,283) 76,395 (200,621) (368,897) 40,646
Accumulated Net Realized Loss on Investments (38,469,908) (17,815,453) (88,164,910) (41,006,332) (84,491,950) (42,216,262)
Net Unrealized Appreciation on Investments . 2,257,682 991,321 46,478,923 5,153,564 7,571,198 2,454,001
------------ ------------ ------------- ------------ ------------ ------------
Net Assets ................................. $ 14,919,309 $ 4,714,326 $ 174,842,701 $ 17,494,556 $ 43,694,684 $ 9,119,932
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
TRANS-
PORTATION UTILITIES
FUND FUND
------------ ------------
Paid-In-Capital ............................ $ 29,829,388 $ 53,251,036
Undistributed Net Investment Income (Loss) . (29,578) 471,924
Accumulated Net Realized Loss on Investments (20,398,617) (15,849,202)
Net Unrealized Appreciation on Investments . 927,332 3,144,790
------------ ------------
Net Assets ................................. $ 10,328,525 $ 41,018,548
------------ ------------
------------ ------------
160
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
8. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
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 102% 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, 2003, the pooled cash
collateral investments consisted of repurchase agreements (78.46%), commercial
paper (11.99%), fixed income notes (9.43%), and mutual funds (0.12%). 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. The Trust holds the cash collateral in a
segregated account at its custodian bank. 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.
At September 30, 2003 the following funds participated in securities lending and
received cash collateral:
FUND CASH COLLATERAL VALUE OF SECURITIES LOANED
- ------ --------------- --------------------------
Banking Fund .................. $ 1,086,523 $ 1,047,180
Basic Materials Fund .......... 2,696,991 2,565,901
Biotechnology Fund ............ 71,262,898 68,509,998
Consumer Products Fund ........ 2,148,000 2,075,690
Electronics ................... 21,097,893 19,452,469
Energy Fund ................... 2,401,818 2,321,569
Energy Services Fund .......... 3,781,502 3,617,219
Financial Services Fund ....... 4,611,859 4,427,445
Health Care Fund .............. 4,118,652 3,927,222
Internet Fund ................. 6,590,067 6,210,887
Leisure Fund .................. 477,949 458,377
Precious Metals Fund .......... 76,910,089 73,509,847
Retailing Fund ................ 3,769,069 3,573,919
Technology .................... 13,389,957 12,545,100
Telecommunications Fund ....... 2,753,415 2,588,059
Transportation Fund ........... 2,884,681 2,747,702
Utilities Fund ................ 7,656,523 7,240,691
SEMI-ANNUAL REPORT 161
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
9. REVERSE STOCK SPLITS
Effective April 21, 2003, the Basic Materials Fund, Consumer Products Fund,
Energy Services Fund, Leisure Fund, Telecommunications Fund, Transportation
Fund, and Utilities Fund, Investor Class shares, Advisor Class shares, and C
Class shares, underwent a 1-for-3 reverse split. The effect of this transaction
was to divide the number of outstanding shares in each Fund by three, while
multiplying the net asset value per share by three.
There was no change in the aggregate market value of the outstanding shares as a
result of this transaction.
10. CHANGE IN INDEPENDENT AUDITORS
Effective August 25, 2003, the Trust has retained PricewaterhouseCoopers LLP to
serve as the Trust's independent auditors.
11. 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 site at
http://www.sec.gov.
[LOGO OMITTED]
Rydex Investments
Essential for modern markets[TM]
9601 Blackwell Road
Suite 500
Rockville,MD 20850
800.820.0888
www.rydexfunds.com
THE RYDEX SERIES FUNDS
Strategic Funds
Semi-Annual Report
September 30, 2003
Core Equity Fund
Sector Rotation Fund
[LOGO OMITTED]
RYDEX INVESTMENTS
ESSENTIAL FOR MODERN MARKETS TM
RSFSA-3-11/03
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.
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ......................................... 2
SCHEDULES OF INVESTMENTS ........................................... 3
STATEMENTS OF ASSETS AND LIABILITIES ............................... 19
STATEMENTS OF OPERATIONS ........................................... 20
STATEMENTS OF CHANGES IN NET ASSETS ................................ 21
FINANCIAL HIGHLIGHTS ............................................... 24
NOTES TO FINANCIAL STATEMENTS ...................................... 28
- --------------------------------------------------------------------------------
2
DEAR SHAREHOLDER:
The period April 1 through September 30, 2003 can be characterized by remarkable
resilience in the financial markets and cautious optimism on the economy. Having
started the period in a time of high geopolitical uncertainty and weak economic
activity, the markets returned double-digit gains across the board. Most notable
in the rally was the solid outperformance of the technology sector and
small-capitalization stocks. For the period, small-cap stocks, as measured by
the Russell 2000(R) outperformed the predominantly large-cap S&P 500(R), by an
incredible 16.17%, returning 34.62% and 18.45%, respectively. Similarly, the
tech-heavy Nasdaq 100(R) returned 27.98%, beating the S&P 500 by 9.53%.
The mutual fund industry was rocked by revelations of trading abuses by
corporate executives and fund managers, as well as disclosure of special deals
for top customers. The charges and allegations as presented by New York Attorney
General, Eliot Spitzer, represent a serious breach of fiduciary duty and are
almost certain to bring regulatory changes to the industry. The term
"market-timing" has, unfortunately, taken the connotation of illicit investor
behavior. However, we believe that funds designed to accommodate active trading
can be an important tool in a tactical asset allocation strategy provided
trading activity is monitored and the rules to protect current shareholders are
strictly enforced.
Rydex's two strategic funds, Core Equity Fund and Sector Rotation Fund, both
outpaced the S&P 500 for the period, delivering 21.77% and 21.90% returns,
respectively. Rydex Core Equity Fund outperformed most relative indices due to
the fund's strategy of seeking stocks in the growth/value intersection and was
most successful in the mid- and small-capitalization ranges. The fund benefited
from limiting its exposure to a few notable large-cap stocks that struggled,
including Pfizer, Verizon and Merck. Conversely, the fund maintained profitable
positions in Cytec Corp. and Sears Roebuck & Co., up 42% and 31% in the third
quarter of the year. The themes that propelled the market higher during the
period also benefited Rydex Sector Rotation Fund, which uses a momentum strategy
to identify which sectors and industries are showing strength. Especially
notable has been the unrelenting rally in internet-related companies. The fund
has owned the internet and catalog retail industry for over a year now, during
which time the position has gained roughly 100%. Other holdings that have
appreciated nicely are biotechnology, internet software and services and
semiconductors. In fact, industries in the technology sector now comprise over
one third of the fund. Another third of the fund is invested in consumer
discretionary industries, which have benefited handsomely from strong consumer
spending. Rounding out the rest of the positions are recent success stories such
as metals and mining, airlines and certain financial services industries.
On the fixed-income side, uneven reports of a stronger economy, positive and
negative unemployment data and increasing bond issuance led to volatility in the
Treasury market throughout the period. On June 16, when the Long Bond yield hit
a low of 4.17%, more positive economic data and improving investor sentiment
initiated an upward trend in rates that topped out on August 15 at 5.45%.
Further uncertainty surrounding the labor market pushed yields lower. Despite
the fixed-income market's lack of direction, the Long Bond yielded 4.88% on
September 30, 2003, closely matching the 4.82% yield recorded on March 31, 2003.
The outlook for higher interest rates and the speculation of a "bond bubble" has
led to increased inflows to Rydex Juno Fund. Juno's assets reached $674.3
million at the end of the third quarter up from $189.9 million at March 31,
2003. This inverse bond fund is an option for investors to speculate on rising
interest rates or to protect fixed-income holdings in a rising interest rate
environment. (Juno Fund is part of the Rydex Benchmark Funds and is reported on
separately.)
Staging a surprising comeback were the stocks of European and Japanese
companies, which have been con-spicuously underperforming in recent years. Rydex
Large-Cap Europe Fund rose 29.76% reflecting improving fundamentals and a strong
Euro versus the U.S. dollar. Rydex Large-Cap Japan rose an astounding 43.10% for
the period reflecting improvements in Japanese domestic growth and growing
global investor confidence. (Large-Cap Europe Fund and Large-Cap Japan Fund are
part of the Rydex Benchmark Funds and are reported on separately.)
Times such as these can be challenging for investors. At Rydex Investments, we
acknowledge and appreciate the trust you have placed in our firm's quality and
integrity by investing with us.
Sincerely,
/S/ CARL G. VERBONCOEUR
Carl G. Verboncoeur
Chief Executive Officer
Rydex Investments
SEMI-ANNUAL REPORT 3
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
COMMON STOCKS 96.4%
FINANCIALS 21.3%
INSURANCE 6.8%
Fidelity National Financial,
Inc. ............................ 8,773 $ 263,716
Kansas City Life
Insurance Co. ................... 5,678 260,393
Commerce Group, Inc. .............. 6,779 257,331
First American Corp. .............. 9,873 245,838
Harleysville Group, Inc. .......... 10,490 244,522
W.R. Berkley Corp. ................ 7,039 241,156
Prudential Financial, Inc. ........ 6,393 238,843
FBL Financial Group,
Inc.--Class A ................... 9,558 235,509
American National
Insurance Co. ................... 2,701 229,720
Odyssey Re Holdings
Corp. ........................... 10,994 226,257
LandAmerica Financial
Group, Inc. ..................... 4,679 214,485
Old Republic
International Corp. ............. 2,888 95,564
Stewart Information
Services Corp.* ................. 3,130 88,391
American International
Group, Inc. ..................... 1,226 70,740
Infinity Property &
Casualty Corp. .................. 2,140 60,155
MBIA, Inc. ........................ 1,051 57,773
Markel Corp.* ..................... 206 55,002
Allstate Corp. .................... 1,401 51,179
Lincoln National Corp. ............ 1,436 50,806
Travelers Property
Casualty Corp.--
Class B ......................... 2,992 47,513
Cincinnati Financial
Corp. ........................... 994 39,720
Phoenix Cos., Inc. ................ 2,395 27,662
PMA Capital Corp.--
Class A ......................... 1,998 25,035
Enstar Group, Inc.* ............... 421 16,524
Jefferson-Pilot Corp. ............. 170 7,545
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
MGIC Investment Corp. ............. 130 $ 6,769
Ohio Casualty Corp.* .............. 390 5,655
-----------
TOTAL INSURANCE 3,363,803
-----------
DIVERSIFIED FINANCIALS 5.8%
Citigroup, Inc. ................... 11,191 509,302
Merrill Lynch & Co.,
Inc. ............................ 6,315 338,042
Freddie Mac ....................... 6,156 322,266
Capital One Financial
Corp. ........................... 5,433 309,898
Lehman Brothers
Holdings, Inc. .................. 4,195 289,791
J.P. Morgan Chase & Co. ........... 6,895 236,705
CompuCredit Corp.* ................ 9,662 169,085
Morgan Stanley .................... 3,319 167,477
ITLA Capital Corp.* ............... 3,094 131,835
Principal Financial
Group, Inc. ..................... 2,683 83,146
Bear Stearns Cos., Inc. ........... 737 55,128
SWS Group, Inc. ................... 2,369 46,693
Jefferies Group, Inc. ............. 1,620 46,575
World Acceptance
Corp.* .......................... 3,407 46,165
LaBranche & Co., Inc. ............. 2,066 30,164
A.G. Edwards, Inc. ................ 760 29,192
MBNA Corp. ........................ 580 13,224
Charles Schwab Corp. .............. 840 10,004
Neuberger Berman, Inc. ............ 210 8,793
SEI Investments Co. ............... 260 8,450
Waddell & Reed Financial,
Inc.--Class A ................... 340 8,014
American Express Co. .............. 35 1,577
-----------
TOTAL DIVERSIFIED FINANCIALS 2,861,526
-----------
BANKS 5.1%
Bank of America Corp. ............. 5,720 446,389
FleetBoston Financial
Corp. ........................... 9,069 273,430
Washington Mutual, Inc. ........... 6,696 263,621
Flagstar Bancorp, Inc. ............ 10,071 231,129
WSFS Financial Corp. .............. 4,889 206,316
Wachovia Corp. .................... 3,388 139,552
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
4
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
U.S. Bancorp ...................... 5,537 $ 132,833
FMS Financial Corp. ............... 3,818 63,951
Waypoint Financial Corp. .......... 2,178 43,560
First Essex Bancorp, Inc. ......... 853 43,409
Wells Fargo & Co. ................. 840 43,260
MainSource Financial
Group, Inc. ..................... 1,590 41,197
First Financial Corp./IN .......... 595 35,938
National City Corp. ............... 1,214 35,764
Citizens First Bancorp,
Inc. ............................ 1,694 35,066
Union Planters Corp. .............. 1,098 34,741
WesBanco, Inc. .................... 1,460 34,310
PNC Financial Services
Group, Inc. ..................... 713 33,925
Camden National Corp. ............. 1,145 33,789
United Community
Financial Corp./OH .............. 3,411 33,769
CFS Bancorp, Inc. ................. 2,419 33,672
First Place Financial
Corp./OH ........................ 1,869 33,175
First Citizens BancShares,
Inc.--Class A ................... 257 27,165
Bank One Corp. .................... 630 24,349
Banknorth Group, Inc. ............. 537 15,154
AmSouth Bancorporation ............ 480 10,186
South Financial Group,
Inc. ............................ 390 9,707
Charter One Financial,
Inc. ............................ 310 9,486
Commercial Federal
Corp. ........................... 380 9,253
Marshall & Ilsley Corp. ........... 280 8,826
Susquehanna Bancshares,
Inc. ............................ 330 8,481
Berkshire Hills Bancorp,
Inc. ............................ 245 8,254
Southwest Bancorp,
Inc./OK ......................... 460 7,751
First Sentinel Bancorp,
Inc. ............................ 430 7,693
ABC Bancorp ....................... 490 7,649
Republic Bancorp,
Inc./MI ......................... 559 7,446
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Hudson River Bancorp,
Inc. ............................ 230 $ 7,390
Zions Bancorporation .............. 130 7,260
Mellon Financial Corp. ............ 240 7,234
West Coast Bancorp/OR ............. 370 7,226
Mid-State Bancshares .............. 310 6,904
UMB Financial Corp. ............... 140 6,604
Chemical Financial Corp. .......... 210 6,499
Peoples Holding Co. ............... 140 6,376
Hancock Holding Co. ............... 120 5,922
First Bancorp/NC .................. 210 5,882
Banner Corp. ...................... 260 5,382
-----------
TOTAL BANKS 2,506,875
-----------
REAL ESTATE 3.6%
Omega Healthcare
Investors, Inc.* ................ 35,772 274,729
Hospitality Properties
Trust ........................... 7,535 264,328
Corrections Corp.
of America* ..................... 10,630 262,242
HRPT Properties Trust ............. 25,936 237,055
Mack-Cali Realty Corp. ............ 3,916 153,507
LTC Properties, Inc. .............. 10,558 122,262
Koger Equity, Inc. ................ 2,640 49,632
Corporate Office
Properties Trust SBI
MD .............................. 2,464 45,609
Kilroy Realty Corp. ............... 1,531 43,710
Correctional Properties
Trust ........................... 1,682 41,966
Senior Housing
Properties Trust ................ 2,851 41,083
Winston Hotels, Inc. .............. 4,335 39,448
National Health Investors,
Inc. ............................ 1,975 36,004
RAIT Investment Trust ............. 1,448 33,246
Glenborough Realty Trust,
Inc. ............................ 1,658 31,270
Bedford Property Investors,
Inc. ............................ 1,122 29,116
Brandywine Realty Trust ........... 350 8,991
Capital Automotive REIT ........... 280 8,543
SL Green Realty Corp. ............. 220 7,944
*NON-INCOME PRODUCING SECURITIES
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 5
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
EastGroup Properties,
Inc. ............................ 250 $ 6,945
Heritage Property
Investment Trust ................ 240 6,931
Healthcare Realty Trust,
Inc. ............................ 210 6,716
Innkeepers USA Trust .............. 720 6,264
Prentiss Properties Trust ......... 190 5,890
-----------
TOTAL REAL ESTATE 1,763,431
-----------
TOTAL FINANCIALS 10,495,635
-----------
INFORMATION TECHNOLOGY 18.0%
COMMUNICATIONS EQUIPMENT 4.5%
Cisco Systems, Inc.* .............. 21,869 427,320
Motorola, Inc. .................... 29,400 351,918
QUALCOMM, Inc. .................... 7,932 330,288
Adaptec, Inc.* .................... 37,559 283,946
Comverse Technology,
Inc.* ........................... 11,409 170,679
Corning, Inc.* .................... 16,588 156,259
Avocent Corp.* .................... 4,657 141,060
Comtech
Telecommunications
Corp.* .......................... 5,002 119,598
Computer Network
Technology Corp.* ............... 10,248 88,953
Scientific-Atlanta, Inc. .......... 1,860 57,939
Oplink Communications,
Inc.* ........................... 16,185 40,948
ADTRAN, Inc. ...................... 509 31,141
Aspect Communications
Corp.* .......................... 1,654 13,778
Harris Corp. ...................... 180 6,442
-----------
TOTAL COMMUNICATIONS
EQUIPMENT 2,220,269
-----------
COMPUTERS & PERIPHERALS 3.2%
Hutchinson Technology,
Inc.* ........................... 8,605 284,826
EMC Corp./MA* ..................... 18,161 229,374
International Business
Machines Corp. .................. 2,395 211,550
Hewlett-Packard Co. ............... 10,857 210,192
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Western Digital Corp.* ............ 9,269 $ 119,478
Storage Technology
Corp.* .......................... 4,194 101,243
Rainbow Technologies,
Inc.* ........................... 10,460 95,604
Apple Computer, Inc.* ............. 3,411 70,369
Imation Corp. ..................... 1,645 53,709
Diebold, Inc. ..................... 876 44,369
Dell, Inc.* ....................... 1,115 37,230
NCR Corp.* ........................ 1,157 36,665
Applied Films Corp.* .............. 1,210 35,973
Sun Microsystems, Inc.* ........... 3,860 12,777
-----------
TOTAL COMPUTERS & PERIPHERALS 1,543,359
-----------
SOFTWARE 2.7%
Microsoft Corp. ................... 12,285 341,400
TALX Corp. ........................ 7,453 183,493
Inet Technologies, Inc.* .......... 8,295 107,337
Group 1 Software, Inc.* ........... 4,762 85,573
Citrix Systems, Inc.* ............. 3,314 73,173
Computer Associates
International, Inc. ............. 2,683 70,053
Veritas Software Corp.* ........... 2,066 64,872
Macrovision Corp.* ................ 3,495 64,553
Hyperion Solutions
Corp.* .......................... 2,164 62,475
Sanchez Computer
Associates, Inc.* ............... 14,682 56,379
SPSS, Inc.* ....................... 2,580 43,525
RSA Security, Inc.* ............... 2,118 30,245
Electronic Arts, Inc.* ............ 260 23,980
Micromuse, Inc.* .................. 2,703 22,110
Adobe Systems, Inc. ............... 550 21,593
Serena Software, Inc.* ............ 822 15,289
PeopleSoft, Inc.* ................. 660 12,005
Roxio, Inc.* ...................... 1,244 10,785
Cadence Design Systems,
Inc.* ........................... 760 10,184
Siebel Systems, Inc.* ............. 1,030 10,012
Macromedia, Inc.* ................. 313 7,744
Network Associates, Inc.* ......... 460 6,330
Reynolds & Reynolds
Co.--Class A .................... 200 5,510
Ansoft Corp.* ..................... 509 5,217
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Oracle Corp.* ..................... 164 $ 1,840
Synopsys, Inc.* ................... 40 1,231
-----------
TOTAL SOFTWARE 1,336,908
-----------
SEMICONDUCTOR EQUIPMENT
& PRODUCTS 2.7%
Intel Corp. ....................... 22,448 617,545
Lattice Semiconductor
Corp.* .......................... 21,232 150,960
Atmel Corp.* ...................... 26,621 106,750
Intersil Corp.--Class A* .......... 3,906 92,963
Varian Semiconductor
Equipment Associates,
Inc.* ........................... 2,271 85,049
NVIDIA Corp.* ..................... 5,043 80,239
Genesis Microchip, Inc.* .......... 4,707 52,765
Applied Materials, Inc.* .......... 2,680 48,615
KLA-Tencor Corp.* ................. 460 23,644
GlobespanVirata, Inc.* ............ 2,715 19,602
Broadcom Corp.--
Class A* ........................ 500 13,310
Maxim Integrated
Products, Inc. .................. 280 11,060
LSI Logic Corp.* .................. 1,080 9,709
-----------
TOTAL SEMICONDUCTOR
EQUIPMENT & PRODUCTS 1,312,211
-----------
ELECTRONIC EQUIPMENT
& INSTRUMENTS 2.1%
CDW Corp. ......................... 5,128 296,091
Planar Systems, Inc.* ............. 10,250 219,862
Rofin-Sinar Technologies,
Inc.* ........................... 9,344 196,131
Sanmina-SCI Corp.* ................ 10,352 100,414
Pemstar, Inc.* .................... 20,076 71,471
Thermo Electron Corp.* ............ 2,126 46,134
Mettler Toledo
International, Inc.* ............ 935 33,613
Varian, Inc.* ..................... 822 25,745
Solectron Corp.* .................. 4,360 25,506
Waters Corp.* ..................... 350 9,601
TTM Technologies, Inc.* ........... 403 5,755
-----------
TOTAL ELECTRONIC
EQUIPMENT & INSTRUMENTS 1,030,323
-----------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
INTERNET SOFTWARE & SERVICES 1.5%
Yahoo!, Inc.* ..................... 5,303 $ 187,620
AsiaInfo Holdings, Inc.* .......... 24,286 163,688
CMGI, Inc.* ....................... 94,346 146,236
Netegrity, Inc.* .................. 14,112 141,261
EarthLink, Inc.* .................. 6,087 50,096
VeriSign, Inc.* ................... 3,495 47,078
ValueClick, Inc.* ................. 2,066 17,375
HomeStore, Inc.* .................. 619 1,715
-----------
TOTAL INTERNET
SOFTWARE & SERVICES 755,069
-----------
IT CONSULTING & SERVICES 1.2%
Computer Horizons
Corp.* .......................... 62,493 231,224
CheckFree Corp.* .................. 4,832 96,640
Safeguard Scientifics,
Inc.* ........................... 25,232 85,789
Computer Sciences
Corp.* .......................... 1,413 53,086
Keane, Inc.* ...................... 2,780 35,528
Electronic Data Systems
Corp. ........................... 1,670 33,734
SunGard Data Systems,
Inc.* ........................... 660 17,365
Automatic Data
Processing, Inc. ................ 340 12,189
Affiliated Computer
Services, Inc.--
Class A* ........................ 230 11,199
Sabre Holdings Corp. .............. 390 8,381
Ceridian Corp.* ................... 440 8,193
Concord EFS, Inc.* ................ 390 5,331
BISYS Group, Inc.* ................ 330 4,339
Fiserv, Inc.* ..................... 90 3,261
-----------
TOTAL IT CONSULTING & SERVICES 606,259
-----------
OFFICE ELECTRONICS 0.1%
Gerber Scientific,
Inc.* ........................... 3,996 28,372
Zebra Technologies
Corp.--Class A* ................. 150 7,735
-----------
TOTAL OFFICE ELECTRONICS 36,107
-----------
TOTAL INFORMATION TECHNOLOGY 8,840,505
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT 7
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
CONSUMER DISCRETIONARY 13.8%
MEDIA 5.1%
Viacom, Inc.--Class B ............. 8,029 $ 307,511
Metro-Goldwyn-Mayer,
Inc.* ........................... 18,717 287,119
AOL Time Warner, Inc.* ............ 18,496 279,475
Liberty Media Corp.--
Class A* ........................ 26,801 267,206
Clear Channel
Communications, Inc. ............ 6,789 260,019
Acme Communications,
Inc.* ........................... 30,255 228,425
Fox Entertainment
Group, Inc.--
Class A* ........................ 8,154 228,230
Pulitzer, Inc. .................... 3,916 204,024
Interactive Data Corp.* ........... 11,543 182,379
Walt Disney Co. ................... 6,297 127,010
General Motors
Corp.-Hughes
Electronics Corp.* .............. 4,171 59,687
Gannett Co., Inc. ................. 737 57,162
Univision
Communications,
Inc.--Class A* .................. 410 13,091
Lamar Advertising Co.* ............ 240 7,042
Cox Communications,
Inc.--Class A* .................. 220 6,956
John Wiley & Sons,
Inc.--Class A ................... 260 6,757
-----------
TOTAL MEDIA 2,522,093
-----------
HOUSEHOLD DURABLES 2.8%
NVR, Inc.* ........................ 619 288,764
Ryland Group, Inc. ................ 3,350 244,919
KB Home ........................... 4,073 242,995
M.D.C. Holdings, Inc. ............. 2,386 128,844
Applica, Inc. ..................... 20,091 121,551
Lennar Corp.--Class A ............. 1,244 96,771
Centex Corp. ...................... 1,065 82,942
Brookfield Homes Corp. ............ 2,328 43,138
Kimball International,
Inc.--Class B ................... 2,617 38,365
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Whirlpool Corp. ................... 538 $ 36,460
Russ Berrie & Co., Inc. ........... 876 29,512
Palm Harbor Homes,
Inc.* ........................... 509 8,719
Stanley Works ..................... 170 5,018
-----------
TOTAL HOUSEHOLD DURABLES 1,367,998
-----------
SPECIALTY RETAIL 1.6%
Claire's Stores, Inc. ............. 8,400 281,064
Rent-A-Center, Inc.* .............. 3,857 124,581
Stage Stores, Inc.* ............... 4,425 112,749
Gap, Inc. ......................... 4,836 82,792
Michaels Stores, Inc. ............. 865 35,257
Staples, Inc.* .................... 1,050 24,938
Bed Bath & Beyond,
Inc.* ........................... 620 23,672
CarMax, Inc.* ..................... 665 21,719
Lowe's Cos., Inc. ................. 390 20,241
AutoZone, Inc.* ................... 160 14,325
Home Depot, Inc. .................. 425 13,536
Tiffany & Co. ..................... 320 11,946
RadioShack Corp. .................. 420 11,932
Ross Stores, Inc. ................. 200 9,272
Limited Brands, Inc. .............. 340 5,127
-----------
TOTAL SPECIALTY RETAIL 793,151
-----------
HOTELS RESTAURANTS & LEISURE 1.3%
Lone Star Steakhouse
& Saloon, Inc. .................. 10,866 227,100
Starbucks Corp.* .................. 4,264 122,803
CBRL Group, Inc. .................. 3,389 120,242
Dave & Buster's, Inc.* ............ 9,107 93,802
Landry's Restaurants,
Inc. ............................ 1,250 25,750
McDonald's Corp. .................. 680 16,007
Marriott International,
Inc.--Class A ................... 360 15,491
La Quinta Corp.* .................. 1,480 9,220
Gaylord Entertainment
Co.* ............................ 340 8,347
Brinker International, Inc.* ...... 240 8,006
Cheesecake Factory,
Inc.* ........................... 180 6,511
-----------
TOTAL HOTELS RESTAURANTS
& LEISURE 653,279
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
8
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
AUTO COMPONENTS 0.9%
BorgWarner, Inc. .................. 2,164 $ 146,827
ArvinMeritor, Inc. ................ 6,549 116,638
Autoliv, Inc. ..................... 3,721 112,263
Modine Manufacturing
Co. ............................. 1,566 37,271
Tower Automotive, Inc.* ........... 3,763 16,933
-----------
TOTAL AUTO COMPONENTS 429,932
-----------
MULTILINE RETAIL 0.7%
Saks, Inc.* ....................... 21,977 253,395
Big Lots, Inc.* ................... 2,380 37,628
Target Corp. ...................... 470 17,686
Family Dollar Stores, Inc. ........ 390 15,557
-----------
TOTAL MULTILINE RETAIL 324,266
-----------
TEXTILES & APPAREL 0.5%
Warnaco Group, Inc.* .............. 8,785 136,958
Kellwood Co. ...................... 1,537 51,413
Movado Group, Inc. ................ 2,066 45,245
Coach, Inc.* ...................... 260 14,196
-----------
TOTAL TEXTILES & APPAREL 247,812
-----------
LEISURE EQUIPMENT & PRODUCTS 0.5%
Hasbro, Inc. ...................... 12,806 239,216
Marvel Enterprises, Inc.* ......... 288 6,408
-----------
TOTAL LEISURE EQUIPMENT
& PRODUCTS 245,624
-----------
INTERNET & CATALOG RETAIL 0.3%
Amazon.com, Inc.* ................. 2,605 125,978
eBay, Inc.* ....................... 230 12,307
Systemax, Inc.* ................... 100 664
-----------
TOTAL INTERNET & CATALOG RETAIL 138,949
-----------
DISTRIBUTORS 0.1%
Handleman Co. ..................... 4,371 73,783
-----------
TOTAL DISTRIBUTORS 73,783
-----------
AUTOMOBILES 0.0%
Harley-Davidson, Inc. ............. 190 9,158
-----------
TOTAL AUTOMOBILES 9,158
-----------
TOTAL CONSUMER
DISCRETIONARY 6,806,045
-----------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
HEALTH CARE 12.8%
HEALTH CARE PROVIDERS & SERVICES 5.8%
PSS World Medical,
Inc.* ........................... 30,632 $ 271,706
Sunrise Senior Living,
Inc.* ........................... 10,011 262,589
Oxford Health Plans,
Inc.* ........................... 6,307 260,542
Service Corp.
International/US* ............... 56,687 259,060
UnitedHealth Group,
Inc. ............................ 4,748 238,919
Health Net, Inc.* ................. 7,524 238,285
LifePoint Hospitals, Inc.* ........ 9,137 219,745
Hooper Holmes, Inc. ............... 27,902 185,548
Centene Corp.* .................... 6,060 184,163
Express Scripts, Inc.* ............ 2,066 126,336
Owens & Minor, Inc. ............... 5,150 124,115
Aetna, Inc. ....................... 1,134 69,208
PacifiCare Health
Systems, Inc.* .................. 1,318 64,318
Quest Diagnostics,
Inc.* ........................... 876 53,121
Dendrite International,
Inc.* ........................... 3,360 51,038
WebMD Corp.* ...................... 4,811 42,914
AdvancePCS* ....................... 930 42,380
Coventry Health Care,
Inc.* ........................... 617 32,541
Henry Schein, Inc.* ............... 572 32,432
Universal Health Services,
Inc.--Class B* .................. 643 31,796
Triad Hospitals, Inc.* ............ 900 27,252
Cardinal Health, Inc. ............. 220 12,846
D & K Healthcare
Resources, Inc. ................. 780 10,967
Lincare Holdings, Inc.* ........... 260 9,529
Humana, Inc.* ..................... 509 9,188
Medco Health Solutions,
Inc.* ........................... 95 2,463
-----------
TOTAL HEALTH CARE
PROVIDERS & SERVICES 2,863,001
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 9
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
PHARMACEUTICALS 3.0%
Merck & Co., Inc. ................. 6,963 $ 352,467
Pfizer, Inc. ...................... 11,537 350,494
Watson Pharmaceuticals,
Inc.* ........................... 6,033 251,516
ICN Pharmaceuticals,
Inc. ............................ 10,494 180,077
Johnson & Johnson, Inc. ........... 1,845 91,364
Forest Laboratories, Inc.* ........ 1,439 74,037
Wyeth ............................. 1,520 70,072
aaiPharma, Inc.* .................. 3,153 53,948
Bristol-Myers Squibb Co. .......... 1,070 27,456
Eli Lilly & Co. ................... 440 26,136
Hi-Tech Pharmacal Co.,
Inc.* ........................... 286 6,712
CollaGenex
Pharmaceuticals, Inc.* .......... 421 4,517
IVAX Corp.* ....................... 120 2,352
-----------
TOTAL PHARMACEUTICALS 1,491,148
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 3.0%
Cytyc Corp.* ...................... 21,741 326,985
Becton, Dickinson & Co. ........... 6,671 240,956
Datascope Corp. ................... 6,851 210,600
Thoratec Corp.* ................... 12,096 205,511
Dade Behring Holdings,
Inc.* ........................... 3,724 105,203
Interpore International,
Inc.* ........................... 6,337 97,336
Beckman Coulter, Inc. ............. 865 39,392
Sybron Dental
Specialties, Inc.* .............. 1,537 38,533
Osteotech, Inc.* .................. 4,515 36,978
Medtronic, Inc. ................... 590 27,683
DJ Orthopedics, Inc.* ............. 1,969 27,468
Biosite, Inc.* .................... 930 26,393
Zimmer Holdings, Inc.* ............ 400 22,040
Ventana Medical Systems,
Inc.* ........................... 421 16,966
INAMED Corp.* ..................... 226 16,600
Baxter International, Inc. ........ 570 16,564
DENTSPLY International,
Inc. ............................ 180 8,071
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Varian Medical Systems,
Inc.* ........................... 110 $ 6,323
-----------
TOTAL HEALTH CARE
EQUIPMENT & SUPPLIES 1,469,602
-----------
BIOTECHNOLOGY 1.0%
Genencor International,
Inc.* ........................... 8,692 136,377
Genzyme Corp.* .................... 2,431 112,434
Gen-Probe, Inc.* .................. 1,356 73,455
Chiron Corp.* ..................... 1,297 67,042
Invitrogen Corp.* ................. 817 47,378
Amgen, Inc.* ...................... 390 25,182
MedImmune, Inc.* .................. 590 19,476
-----------
TOTAL BIOTECHNOLOGY 481,344
-----------
TOTAL HEALTH CARE 6,305,095
-----------
INDUSTRIALS 10.9%
MACHINERY 2.3%
Parker Hannifin Corp. ............. 5,806 259,528
Danaher Corp. ..................... 3,340 246,692
Harsco Corp. ...................... 2,683 103,215
Albany International
Corp.--Class A .................. 2,983 91,996
Caterpillar, Inc. ................. 982 67,601
EnPro Industries, Inc.* ........... 5,412 52,226
PACCAR, Inc. ...................... 687 51,312
Trinity Industries, Inc. .......... 1,857 48,003
SPS Technologies, Inc.* ........... 947 42,615
SPX Corp.* ........................ 876 39,665
Illinois Tool Works, Inc. ......... 550 36,443
Mueller Industries,
Inc.* ........................... 1,297 33,009
Reliance Steel &
Aluminum Co. .................... 1,309 29,047
Dover Corp. ....................... 350 12,379
Kennametal, Inc. .................. 270 10,098
Kaydon Corp. ...................... 300 7,122
Wabtec Corp. ...................... 410 6,499
Thomas Industries, Inc. ........... 200 5,704
-----------
TOTAL MACHINERY 1,143,154
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
10
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES 1.8%
Cendant Corp.* .................... 15,585 $ 291,284
University of Phoenix
Online* ......................... 4,195 279,303
Coinstar, Inc.* ................... 6,921 93,087
NCO Group, Inc.* .................. 2,215 51,986
Equifax, Inc. ..................... 1,880 41,868
Career Education Corp.* ........... 922 41,767
Herman Miller, Inc. ............... 1,590 36,204
Ionics, Inc.* ..................... 1,087 26,588
Portfolio Recovery
Associates, Inc.* ............... 982 24,962
Cornell Cos., Inc.* ............... 993 16,335
G & K Services, Inc.--
Class A ......................... 180 6,300
-----------
TOTAL COMMERCIAL SERVICES
& SUPPLIES 909,684
-----------
AEROSPACE & DEFENSE 1.7%
Goodrich Corp. .................... 11,320 274,397
United Technologies
Corp. ........................... 2,888 223,185
General Dynamics Corp. ............ 1,901 148,392
United Defense
Industries, Inc.* ............... 3,603 102,289
L-3 Communications
Holdings, Inc.* ................. 888 38,406
Aviall, Inc.* ..................... 1,270 15,723
Raytheon Co. ...................... 260 7,280
Alliant Techsystems, Inc.* ........ 90 4,324
-----------
TOTAL AEROSPACE & DEFENSE 813,996
-----------
INDUSTRIAL CONGLOMERATES 1.4%
General Electric Co. .............. 13,329 397,337
ALLETE, Inc. ...................... 7,617 208,553
Standex International
Corp. ........................... 1,472 35,770
3M Co. ............................ 340 23,484
United Capital Corp. .............. 200 3,600
-----------
TOTAL INDUSTRIAL CONGLOMERATES 668,744
-----------
ELECTRICAL EQUIPMENT 1.3%
American Power
Conversion Corp. ................ 12,086 207,154
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Rockwell Automation,
Inc. ............................ 7,060 $ 185,325
AMETEK, Inc. ...................... 3,916 167,840
Regal-Beloit Corp. ................ 1,880 38,352
Thomas & Betts Corp.* ............. 2,242 35,535
-----------
TOTAL ELECTRICAL EQUIPMENT 634,206
-----------
ROAD & RAIL 1.0%
Florida East Coast
Industries, Inc. ................ 5,257 151,139
Genesee & Wyoming,
Inc.--Class A* .................. 5,544 131,448
Swift Transportation Co.,
Inc.* ........................... 2,150 48,784
SCS Transportation, Inc.* ......... 3,223 48,667
Yellow Corp.* ..................... 1,367 40,846
Werner Enterprises, Inc. .......... 1,658 37,985
Union Pacific Corp. ............... 422 24,548
Norfolk Southern Corp. ............ 560 10,360
USF Corp. ......................... 220 6,923
Kansas City Southern* ............. 500 5,535
-----------
TOTAL ROAD & RAIL 506,235
-----------
CONSTRUCTION & ENGINEERING 0.9%
Granite Construction,
Inc. ............................ 13,469 251,601
Insituform Technologies,
Inc.--Class A* .................. 9,187 163,161
Dycom Industries, Inc.* ........... 550 11,215
-----------
TOTAL CONSTRUCTION
& ENGINEERING 425,977
-----------
AIRLINES 0.2%
Southwest Airlines Co. ............ 2,464 43,613
Alaska Air Group, Inc.* ........... 1,401 38,976
Delta Air Lines, Inc. ............. 2,431 32,332
-----------
TOTAL AIRLINES 114,921
-----------
BUILDING PRODUCTS 0.2%
USG Corp.* ........................ 3,306 56,995
Jacuzzi Brands, Inc.* ............. 8,332 51,658
Lennox International,
Inc. ............................ 160 2,338
-----------
TOTAL BUILDING PRODUCTS 110,991
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 11
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
MARINE 0.1%
Alexander & Baldwin,
Inc. ............................ 1,590 $ 44,647
-----------
TOTAL MARINE 44,647
-----------
AIR FREIGHT & COURIERS 0.0%
Expeditors International
of Washington, Inc. ............. 260 8,947
-----------
TOTAL AIR FREIGHT & COURIERS 8,947
-----------
TRADING COMPANIES & DISTRIBUTORS 0.0%
W.W. Grainger, Inc. ............... 130 6,182
-----------
TOTAL TRADING COMPANIES
& DISTRIBUTORS 6,182
-----------
TOTAL INDUSTRIALS 5,387,684
-----------
CONSUMER STAPLES 6.0%
FOOD PRODUCTS 2.7%
Dean Foods Co.* ................... 8,763 271,916
Sara Lee Corp. .................... 13,705 251,624
Flowers Foods, Inc. ............... 7,814 178,159
ConAgra Foods, Inc. ............... 7,010 148,892
Sanderson Farms, Inc. ............. 4,401 138,456
M&F Worldwide Corp.* .............. 9,360 90,137
Central Garden & Pet
Co.* ............................ 2,839 74,155
Alico, Inc. ....................... 1,537 43,051
Farmer Brothers Co. ............... 130 41,640
McCormick & Co., Inc. ............. 1,484 40,691
Tyson Foods, Inc.--
Class A ......................... 2,389 33,757
-----------
TOTAL FOOD PRODUCTS 1,312,478
-----------
TOBACCO 1.3%
Altria Group, Inc. ................ 10,001 438,044
Loews Corp.--Carolina
Group ........................... 9,382 215,786
-----------
TOTAL TOBACCO 653,830
-----------
FOOD & DRUG RETAILING 0.7%
Wal-Mart Stores, Inc. ............. 2,470 137,949
Chronimed, Inc.* .................. 6,755 61,673
Costco Wholesale Corp.* ........... 1,484 46,123
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
CVS Corp. ......................... 1,448 $ 44,975
Kroger Co.* ....................... 2,301 41,119
Ruddick Corp. ..................... 1,647 25,594
Pantry, Inc.* ..................... 440 5,320
-----------
TOTAL FOOD & DRUG RETAILING 362,753
-----------
HOUSEHOLD PRODUCTS 0.7%
Energizer Holdings, Inc.* ......... 6,002 220,694
Clorox Co. ........................ 1,460 66,970
Procter & Gamble Co. .............. 367 34,065
-----------
TOTAL HOUSEHOLD PRODUCTS 321,729
-----------
PERSONAL PRODUCTS 0.6%
Gillette Co. ...................... 8,038 257,055
NBTY, Inc.* ....................... 617 14,407
Avon Products, Inc. ............... 160 10,329
Elizabeth Arden, Inc.* ............ 527 8,685
Estee Lauder Cos., Inc.--
Class A ......................... 250 8,525
Chattem, Inc.* .................... 509 7,065
USANA Health Sciences,
Inc.* ........................... 100 4,825
-----------
TOTAL PERSONAL PRODUCTS 310,891
-----------
BEVERAGES 0.0%
PepsiCo, Inc. ..................... 315 14,436
-----------
TOTAL BEVERAGES 14,436
-----------
TOTAL CONSUMER STAPLES 2,976,117
-----------
ENERGY 4.5%
OIL & GAS 4.4%
ConocoPhillips .................... 5,830 319,192
Exxon Mobil Corp. ................. 8,020 293,532
Pogo Producing Co. ................ 5,854 265,069
Westport Resources
Corp.* .......................... 10,738 252,772
Nuevo Energy Co.* ................. 12,233 222,274
Chesapeake Energy
Corp. ........................... 15,390 165,904
Petroleum Development
Corp.* .......................... 7,010 83,980
Cimarex Energy Co.* ............... 3,752 73,539
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
12
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Comstock Resources,
Inc.* ........................... 4,857 $ 64,889
Murphy Oil Corp. .................. 971 57,046
Valero Energy Corp. ............... 1,214 46,460
Kerr-McGee Corp. .................. 982 43,836
Tom Brown, Inc.* .................. 1,578 40,555
EOG Resources, Inc. ............... 971 40,530
XTO Energy, Inc. .................. 1,840 38,622
Noble Energy, Inc. ................ 959 36,730
Western Gas Resources,
Inc. ............................ 947 35,986
Devon Energy Corp. ................ 670 32,287
TransMontaigne, Inc.* ............. 3,960 23,602
Occidental Petroleum
Corp. ........................... 509 17,932
Forest Oil Corp.* ................. 600 14,370
Pioneer Natural
Resources Co.* .................. 280 7,129
Anadarko Petroleum
Corp. ........................... 150 6,264
-----------
TOTAL OIL & GAS 2,182,500
-----------
ENERGY EQUIPMENT & SERVICES 0.1%
Veritas DGC, Inc.* ................ 2,664 21,259
-----------
TOTAL ENERGY EQUIPMENT
& SERVICES 21,259
-----------
TOTAL ENERGY 2,203,759
-----------
MATERIALS 3.8%
METALS & MINING 1.2%
Newmont Mining Corp. .............. 7,044 275,350
Alcoa, Inc. ....................... 10,259 268,376
Nucor Corp. ....................... 690 31,657
Commercial Metals Co. ............. 1,635 30,035
Brush Engineered
Materials, Inc.* ................ 700 7,175
-----------
TOTAL METALS & MINING 612,593
-----------
CONTAINERS & PACKAGING 1.0%
Longview Fibre Co. ................ 27,665 270,287
Pactiv Corp.* ..................... 9,682 196,351
Greif, Inc.--Class A .............. 1,075 27,950
-----------
TOTAL CONTAINERS & PACKAGING 494,588
-----------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
CHEMICALS 0.7%
Airgas, Inc. ...................... 7,914 $ 140,869
Praxair, Inc. ..................... 1,145 70,933
Valspar Corp. ..................... 701 32,702
Crompton Corp. .................... 4,240 24,634
Ecolab, Inc. ...................... 520 13,130
PPG Industries, Inc. .............. 210 10,966
Millennium Chemicals,
Inc. ............................ 710 6,780
Engelhard Corp. ................... 240 6,641
Ethyl Corp.* ...................... 510 6,416
H.B. Fuller Co. ................... 230 5,582
Spartech Corp. .................... 250 5,325
Cytec Industries, Inc.* ........... 138 5,037
Dow Chemical Co. .................. 20 651
-----------
TOTAL CHEMICALS 329,666
-----------
CONSTRUCTION MATERIALS 0.5%
Ameron International
Corp. ........................... 6,220 205,322
Vulcan Materials Co. .............. 829 33,086
-----------
TOTAL CONSTRUCTION MATERIALS 238,408
-----------
PAPER & FOREST PRODUCTS 0.4%
Rayonier, Inc. .................... 3,299 133,939
MeadWestvaco Corp. ................ 1,729 44,089
Weyerhaeuser Co. .................. 70 4,092
-----------
TOTAL PAPER & FOREST PRODUCTS 182,120
-----------
TOTAL MATERIALS 1,857,375
-----------
UTILITIES 3.3%
ELECTRIC UTILITIES 2.3%
Wisconsin Energy Corp. ............ 9,019 275,711
Entergy Corp. ..................... 4,482 242,700
NSTAR ............................. 4,652 220,970
CH Energy Group, Inc. ............. 3,081 135,564
PNM Resources, Inc. ............... 1,961 54,987
Public Service Enterprise
Group, Inc. ..................... 1,134 47,628
Alliant Energy Corp. .............. 1,578 34,716
Black Hills Corp. ................. 1,122 34,625
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 13
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
CenterPoint Energy, Inc. .......... 3,201 $ 29,353
PG&E Corp.* ....................... 710 16,969
Allegheny Energy, Inc.* ........... 1,800 16,452
Dominion Resources,
Inc. /VA ........................ 230 14,237
WPS Resources Corp. ............... 240 9,888
Southern Co. ...................... 230 6,744
DPL, Inc. ......................... 340 5,831
Texas Genco Holdings,
Inc. ............................ 118 2,808
-----------
TOTAL ELECTRIC UTILITIES 1,149,183
-----------
MULTI-UTILITIES 0.6%
Avista Corp. ...................... 9,508 148,135
Energen Corp. ..................... 3,525 127,534
Westar Energy, Inc. ............... 490 9,041
-----------
TOTAL MULTI-UTILITIES 284,710
-----------
GAS UTILITIES 0.4%
Southwestern Energy
Co.* ............................ 3,488 63,133
Southern Union Co.* ............... 3,546 60,282
South Jersey Industries,
Inc. ............................ 923 34,935
NUI Corp. ......................... 1,367 20,437
Southwest Gas Corp. ............... 340 7,718
-----------
TOTAL GAS UTILITIES 186,505
-----------
WATER UTILITIES 0.0%
American States Water
Co. ............................. 929 21,896
-----------
TOTAL WATER UTILITIES 21,896
-----------
TOTAL UTILITIES 1,642,294
-----------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
TELECOMMUNICATION SERVICES 2.0%
DIVERSIFIED TELECOMMUNICATION
SERVICES 1.7%
Sprint Corp.-FON
Group ........................... 18,038 $ 272,374
CenturyTel, Inc. .................. 7,653 259,360
Shenandoah
Telecommunications
Co. ............................. 5,315 204,893
AT&T Corp. ........................ 2,405 51,827
Citizens Communications
Co.* ............................ 2,780 31,164
Verizon Communications,
Inc. ............................ 120 3,893
WilTel Communications
Group, Inc.* .................... 98 1,566
-----------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 825,077
-----------
WIRELESS TELECOMMUNICATION
SERVICES 0.3%
AT&T Wireless Services,
Inc.* ........................... 9,359 76,557
Sprint Corp.-PCS
Group* .......................... 11,296 64,726
SBA Communications
Corp.* .......................... 880 2,816
-----------
TOTAL WIRELESS TELECOMMUNICATION
SERVICES 144,099
-----------
TOTAL TELECOMMUNICATION
SERVICES 969,176
-----------
TOTAL COMMON STOCKS
(Cost $44,512,593) ................ 47,483,685
-----------
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
14
CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 3.6%
Repurchase Agreement (Note 5)
0.96% due 10/01/03 ................................. $392,530 $ 392,530
0.94% due 10/01/03 ................................. 27,943 27,943
0.93% due 10/01/03 ................................. 392,530 392,530
0.91% due 10/01/03 ................................. 392,530 392,530
0.90% due 10/01/03 ................................. 554,160 554,160
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,759,693) .................................. 1,759,693
------------
TOTAL INVESTMENTS 100%
(Cost $46,272,286) ................................. $49,243,378
============
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2003 S&P 500 Index Futures Contracts
(Aggregate Market Value of Contract $255,000) ...... 1 $ (1,820)
December 2003 Russell 2000 Index Futures Contracts
(Aggregate Market Value of Contract $243,250) ...... 1 (2,755)
December 2003 S&P 500 Index Mini Futures Contracts
(Aggregate Market Value of Contracts $298,275) ..... 6 (7,908)
------------
(TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $796,525) . $ (12,483)
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 15
SECTOR ROTATION FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
COMMON STOCKS 98.7%
INFORMATION TECHNOLOGY 30.0%
ELECTRONIC EQUIPMENT
& INSTRUMENTS 8.0%
Agilent Technologies,
Inc.* ........................... 28,700 $ 634,557
Flextronics International
Ltd.* ........................... 43,500 616,830
CDW Corp. ......................... 8,700 502,338
Jabil Circuit, Inc.* .............. 19,200 500,160
Sanmina-SCI Corp.* ................ 49,800 483,060
Thermo Electron Corp.* ............ 19,000 412,300
Solectron Corp.* .................. 70,400 411,840
Waters Corp.* ..................... 14,200 389,506
Molex, Inc. ....................... 13,600 388,824
Vishay Intertechnology,
Inc.* ........................... 21,500 376,680
Celestica, Inc.* .................. 23,600 374,296
Symbol Technologies,
Inc. ............................ 29,900 357,305
AVX Corp. ......................... 25,700 351,833
National Instruments
Corp. ........................... 8,000 322,000
Amphenol Corp.--
Class A* ........................ 4,700 244,635
-----------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 6,366,164
-----------
COMMUNICATIONS EQUIPMENT 7.4%
Cisco Systems, Inc.* .............. 59,000 1,152,860
Nokia OYJ--SP ADR ................. 52,000 811,200
QUALCOMM, Inc. .................... 13,800 574,632
Motorola, Inc. .................... 45,500 544,635
Nortel Networks Corp.* ............ 99,900 409,590
Alcatel SA--SP ADR* ............... 30,600 361,998
Corning, Inc.* .................... 38,100 358,902
Lucent Technologies,
Inc.* ........................... 130,700 282,312
QLogic Corp.* ..................... 5,100 239,751
JDS Uniphase Corp.* ............... 58,200 209,520
Avaya, Inc.* ...................... 18,500 201,650
Juniper Networks, Inc.* ........... 13,500 201,420
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------
Scientific-Atlanta, Inc. .......... 6,300 $196,245
UTStarcom, Inc.* .................. 5,900 187,679
Tellabs, Inc.* .................... 23,000 156,170
-----------
TOTAL COMMUNICATIONS
EQUIPMENT 5,888,564
-----------
SEMICONDUCTOR EQUIPMENT
& PRODUCTS 7.4%
Intel Corp. ....................... 42,640 1,173,027
Texas Instruments, Inc. ........... 23,200 528,960
Taiwan Semiconductor
Manufacturing Co.
Ltd.--SP ADR* ................... 45,420 491,899
Applied Materials, Inc.* .......... 24,420 442,979
STMicroelectronics NV ............. 17,300 416,065
Analog Devices, Inc.* ............. 8,860 336,857
United Microelectronics
Corp.--SP ADR* .................. 72,100 325,171
Maxim Integrated
Products, Inc. .................. 7,840 309,680
Linear Technology Corp. ........... 8,180 292,926
KLA-Tencor Corp.* ................. 5,520 283,728
Xilinx, Inc.* ..................... 9,640 274,836
Micron Technology, Inc.* .......... 19,640 263,569
Infineon Technologies
AG--SP ADR* ..................... 19,980 257,542
Altera Corp.* ..................... 11,500 217,350
ASML Holding NV* .................. 15,280 200,626
-----------
TOTAL SEMICONDUCTOR
EQUIPMENT & PRODUCTS 5,815,215
-----------
INTERNET SOFTWARE & SERVICES 7.2%
Yahoo!, Inc.* ..................... 42,800 1,514,264
Overture Services, Inc.* .......... 24,100 638,409
VeriSign, Inc.* ................... 42,800 576,516
WebEx Communications,
Inc.* ........................... 23,800 451,962
United Online, Inc.* .............. 12,000 416,640
DoubleClick, Inc.* ................ 35,500 382,335
EarthLink, Inc.* .................. 44,800 368,704
RealNetworks, Inc.* ............... 50,800 332,740
Internet Security Systems,
Inc.* ........................... 20,900 261,250
Open Text Corp.* .................. 7,600 259,388
*NON-INCOME PRODUCING SECURITIES
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
16
SECTOR ROTATION FUND
SCHEDULE OF INVESTMENTS(UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Ariba, Inc.* ............................... 82,700 $ 251,408
PEC Solutions, Inc.* ....................... 16,300 240,588
------------
TOTAL INTERNET SOFTWARE
& SERVICES 5,694,204
------------
TOTAL INFORMATION
TECHNOLOGY 23,764,147
------------
CONSUMER DISCRETIONARY 24.1%
INTERNET & CATALOG RETAIL 8.5%
eBay, Inc.* ................................ 40,380 2,160,734
Amazon.com, Inc.* .......................... 36,350 1,757,886
InterActiveCorp* ........................... 43,383 1,433,808
Priceline.com, Inc.* ....................... 12,506 362,549
Netflix, Inc.* ............................. 10,720 360,299
Insight Enterprises, Inc.* ................. 17,600 267,872
ValueVision Media,
Inc.--Class A* ........................... 12,970 206,353
Alloy, Inc.* ............................... 15,880 88,928
J. Jill Group, Inc.* ....................... 6,160 70,840
------------
TOTAL INTERNET & CATALOG RETAIL 6,709,269
------------
HOTELS RESTAURANTS & LEISURE 8.0%
McDonald's Corp. ........................... 31,100 732,094
Carnival Corp. ............................. 19,900 654,511
Starbucks Corp.* ........................... 19,000 547,200
Marriott International,
Inc.--Class A ............................ 12,200 524,966
International Game
Technology, Inc. ......................... 16,200 456,030
Starwood Hotels &
Resorts Worldwide,
Inc. ..................................... 13,000 452,400
Yum! Brands, Inc.* ......................... 14,700 435,414
Hilton Hotels Corp. ........................ 25,500 413,610
Royal Caribbean Cruises
Ltd. ..................................... 13,600 382,296
Harrah's Entertainment,
Inc. ..................................... 7,800 328,458
MGM Mirage, Inc.* .......................... 8,300 303,365
Wendy's International,
Inc. ..................................... 8,800 284,240
Darden Restaurants, Inc. ................... 14,500 275,500
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Brinker International,
Inc.* .................................... 7,800 $ 260,208
Outback Steakhouse, Inc. ................... 6,500 246,155
------------
TOTAL HOTELS RESTAURANTS
& LEISURE 6,296,447
------------
AUTO COMPONENTS 7.6%
Johnson Controls, Inc. ..................... 8,500 804,100
Magna International,
Inc.--Class A ............................ 10,300 743,145
Delphi Corp. ............................... 60,300 545,715
Lear Corp.* ................................ 10,000 526,400
Autoliv, Inc. .............................. 13,600 410,312
Gentex Corp.* .............................. 11,500 400,660
Dana Corp. ................................. 24,900 384,207
BorgWarner, Inc. ........................... 5,400 366,390
American Axle &
Manufacturing
Holdings, Inc.* .......................... 11,500 340,170
Superior Industries
International, Inc. ...................... 7,200 291,960
Cooper Tire & Rubber
Co. ...................................... 16,800 266,616
ArvinMeritor, Inc. ......................... 14,800 263,588
Modine Manufacturing
Co. ...................................... 9,900 235,620
Visteon Corp. .............................. 34,700 229,020
Goodyear Tire & Rubber
Co. ...................................... 31,500 206,955
------------
TOTAL AUTO COMPONENTS 6,014,858
------------
TOTAL CONSUMER
DISCRETIONARY 19,020,574
------------
FINANCIALS 14.7%
DIVERSIFIED FINANCIALS 13.0%
American Express Co. ....................... 38,800 1,748,328
MBNA Corp. ................................. 53,300 1,215,240
SLM Corp. .................................. 24,500 954,520
Capital One Financial
Corp. .................................... 14,800 844,192
J.P. Morgan Chase & Co. .................... 20,500 703,765
Morgan Stanley ............................. 12,700 640,842
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 17
SECTOR ROTATION FUND
SCHEDULE OF INVESTMENTS(UNAUDITED) (CONTINUED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Merrill Lynch & Co.,
Inc. ..................................... 10,800 $ 578,124
Goldman Sachs Group,
Inc. ..................................... 6,500 545,350
Providian Financial
Corp.* ................................... 38,200 450,378
State Street Corp. ......................... 7,300 328,500
Charles Schwab Corp. ....................... 27,100 322,761
Lehman Brothers
Holdings, Inc. ........................... 4,600 317,768
Student Loan Corp. ......................... 2,600 310,258
AmeriCredit Corp.* ......................... 28,500 293,550
Franklin Resources, Inc. ................... 6,600 291,786
Bear Stearns Cos., Inc. .................... 2,900 216,920
Northern Trust Corp. ....................... 5,000 212,200
Legg Mason, Inc. ........................... 2,200 158,840
T. Rowe Price Group,
Inc. ..................................... 3,800 156,788
------------
TOTAL DIVERSIFIED FINANCIALS 10,290,110
------------
BANKS 1.7%
UBS AG ..................................... 12,100 680,383
Bank of New York Co.,
Inc. ..................................... 12,900 375,519
Mellon Financial Corp. ..................... 10,300 310,442
------------
TOTAL BANKS 1,366,344
------------
TOTAL FINANCIALS 11,656,454
------------
MATERIALS 14.4%
METALS & MINING 7.2%
Alcoa, Inc. ................................ 26,000 680,160
Newmont Mining Corp. ....................... 14,000 547,260
POSCO--SP ADR .............................. 17,500 500,500
Alcan, Inc. ................................ 12,800 489,728
Barrick Gold Corp. ......................... 24,200 455,686
AngloGold Ltd.--SP
ADR ...................................... 10,500 395,850
Gold Fields Ltd.--SP
ADR ...................................... 25,200 357,084
Nucor Corp. ................................ 7,300 334,924
Placer Dome, Inc. .......................... 24,200 332,750
Phelps Dodge Corp.* ........................ 7,100 332,280
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Freeport-McMoRan
Copper & Gold, Inc.--
Class B .................................. 9,700 $ 321,070
Inco Ltd.* ................................. 11,100 308,025
Harmony Gold Mining
Co. Ltd.--SP ADR ......................... 16,000 231,840
Goldcorp, Inc. ............................. 15,600 217,776
Kinross Gold Corp.* ........................ 27,700 206,642
------------
TOTAL METALS & MINING 5,711,575
------------
CONSTRUCTION MATERIALS 7.2%
Cemex SA de CV--SP
ADR ...................................... 67,800 1,691,610
Vulcan Materials Co. ....................... 29,800 1,189,318
Lafarge North America,
Inc. ..................................... 26,600 925,680
Martin Marietta Materials,
Inc. ..................................... 21,800 794,610
Florida Rock Industries,
Inc. ..................................... 15,300 758,880
Texas Industries, Inc. ..................... 13,592 334,363
------------
TOTAL CONSTRUCTION MATERIALS 5,694,461
------------
TOTAL MATERIALS 11,406,036
------------
HEALTH CARE 8.1%
BIOTECHNOLOGY 8.1%
Genentech, Inc.* ........................... 15,000 1,202,100
Amgen, Inc.* ............................... 18,400 1,188,088
Gilead Sciences, Inc.* ..................... 8,300 464,219
Chiron Corp.* .............................. 8,600 444,534
Genzyme Corp.* ............................. 9,300 430,125
MedImmune, Inc.* ........................... 10,800 356,508
IDEC Pharmaceuticals
Corp.* ................................... 9,300 308,295
Celgene Corp.* ............................. 7,000 303,310
Invitrogen Corp.* .......................... 5,200 301,548
Millennium
Pharmaceuticals, Inc.* ................... 18,300 281,637
Biogen, Inc.* .............................. 7,200 275,256
Amylin Pharmaceuticals,
Inc.* .................................... 8,900 251,336
Cephalon, Inc.* ............................ 4,900 225,008
*NON-INCOME PRODUCING SECURITIES
ADR--AMERICAN DEPOSITORY RECEIPT
See Notes to Financial Statements.
18
SECTOR ROTATION FUND
SCHEDULE OF INVESTMENTS(UNAUDITED) (CONCLUDED) September 30, 2003
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Affymetrix, Inc.* .......................... 9,200 $ 193,108
Neurocrine Biosciences,
Inc.* .................................... 3,200 158,464
------------
TOTAL BIOTECHNOLOGY 6,383,536
------------
TOTAL HEALTH CARE 6,383,536
------------
INDUSTRIALS 7.4%
AIRLINES 7.4%
Southwest Airlines Co. ..................... 92,200 1,631,940
JetBlue Airways Corp.* ..................... 17,000 1,036,490
Delta Air Lines, Inc. ...................... 38,900 517,370
AMR Corp.* ................................. 40,000 458,000
Alaska Air Group, Inc.* .................... 16,100 447,902
Continental Airlines, Inc.--Class B* ....... 26,200 434,396
SkyWest, Inc. .............................. 22,700 393,164
ExpressJet Holdings, Inc.* ................. 26,600 367,080
Northwest Airlines Corp.* .................. 35,072 340,198
Atlantic Coast Airlines Holdings, Inc.* .... 24,400 207,644
------------
TOTAL AIRLINES 5,834,184
------------
TOTAL INDUSTRIALS 5,834,184
------------
TOTAL COMMON STOCKS
(Cost $72,248,643) ......................... 78,064,931
------------
FACE
AMOUNT
---------
REPURCHASE AGREEMENTS 1.3%
Repurchase Agreement (Note 5)
0.96% due 10/01/03 ......................... $235,887 235,887
0.94% due 10/01/03 ......................... 16,792 16,792
0.93% due 10/01/03 ......................... 235,887 235,887
0.91% due 10/01/03 ......................... 235,887 235,887
0.90% due 10/01/03 ......................... 333,017 333,017
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,057,470) .......................... 1,057,470
------------
TOTAL INVESTMENTS 100%
(Cost $73,306,113) ......................... $79,122,401
============
*NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 19
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
----------- -----------
ASSETS
Securities at Value* (Notes 1, 2 and 5) ............... $49,243,378 $79,122,401
Segregated Cash with Broker ........................... 85,050 --
Receivable for Shares Purchased ....................... 241,909 68,064
Investment Income Receivable (Note 1) ................. 38,379 26,498
----------- -----------
TOTAL ASSETS ........................................ 49,608,716 79,216,963
----------- -----------
LIABILITIES
Payable for Futures Contracts Settlement (Note 1) ..... 18,372 --
Payable for Securities Purchased (Note 1) ............. 981,576 --
Liability for Shares Redeemed ......................... 190,288 1,001,017
Investment Advisory Fee Payable (Note 3) .............. 27,165 60,993
Transfer Agent Fee Payable (Note 3) ................... 9,702 16,942
Distribution and Service Fee Payable (Note 3) ......... 3,628 6,917
Portfolio Accounting Fee Payable (Note 3) ............. 3,881 6,777
Custody Fees Payable .................................. 1,281 2,480
Other Liabilities ..................................... 5,180 9,090
----------- -----------
TOTAL LIABILITIES ................................... 1,241,073 1,104,216
----------- -----------
NET ASSETS (NOTE 8) ................................... $48,367,643 $78,112,747
=========== ===========
H CLASS:
Net Assets ............................................ $32,627,770 $49,511,354
Shares Outstanding .................................... 2,639,666 5,361,153
Net Asset Value Per Share ............................. $12.36 $9.24
C CLASS:
Net Assets ............................................ $15,739,873 $28,601,393
Shares Outstanding .................................... 1,283,976 3,130,972
Net Asset Value Per Share ............................. $12.26 $9.13
* THE COST OF SECURITIES AT VALUE IS $46,272,286 AND $73,306,113, RESPECTIVELY.
See Notes to Financial Statements.
20
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003
- -------------------------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
---------- -----------
INVESTMENT INCOME
Interest (Note 1) ............................................. $ 3,429 $ 8,490
Dividends, Net of Foreign Tax Withheld* (Note 1) .............. 281,737 337,755
---------- -----------
Total Income ................................................ 285,166 346,245
---------- -----------
EXPENSES
Advisory Fees (Note 3) ........................................ 143,558 302,726
Transfer Agent Fees (Note 3) .................................. 45,628 84,091
Distribution & Service Fees: (Note 3)
H Class ..................................................... 31,212 54,818
C Class ..................................................... 57,667 117,089
Accounting Fees (Note 3) ...................................... 18,251 33,636
Trustees' Fees ................................................ 524 1,357
Custodian Fees ................................................ 6,418 11,858
Miscellaneous ................................................. 17,075 30,585
---------- -----------
Total Expenses .............................................. 320,333 636,160
---------- -----------
Net Investment Loss ............................................. (35,167) (289,915)
---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities ......................................... 3,116,805 5,708,464
Futures Contracts ............................................. (964) --
---------- -----------
Total Net Realized Gain ..................................... 3,115,841 5,708,464
---------- -----------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities ......................................... 2,834,133 5,696,529
Futures Contracts ............................................. (12,483) --
---------- -----------
Net Change in Unrealized Appreciation ......................... 2,821,650 5,696,529
---------- -----------
Net Gain on Investments ..................................... 5,937,491 11,404,993
---------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ...................... $5,902,324 $11,115,078
========== ===========
* NET OF FOREIGN TAX WITHHELD OF $25 AND $4,165, RESPECTIVELY.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 21
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CORE EQUITY FUND
-----------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003+ 2003*
------------- -----------
FROM OPERATIONS
Net Investment Income (Loss) ...................................... $ (35,167) $ 5,530
Net Realized Gain (Loss) on Investments and Futures ............... 3,115,841 (1,235,184)
Net Change in Unrealized Appreciation on
Investments and Futures ......................................... 2,821,650 136,959
----------- -----------
Net Increase (Decrease) in Net Assets from Operations ............. 5,902,324 (1,092,695)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) .............................. -- --
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (NOTE 7) ............................................. 18,178,312 25,379,702
----------- -----------
Net Increase in Net Assets ........................................ 24,080,636 24,287,007
NET ASSETS--BEGINNING OF PERIOD ..................................... 24,287,007 --
----------- -----------
NET ASSETS--END OF PERIOD (NOTE 8) .................................. $48,367,643 $24,287,007
=========== ===========
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 23, 2002.
+ UNAUDITED.
See Notes to Financial Statements.
22
STATEMENTS OF CHANGES IN NET ASSETS(CONCLUDED)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
-----------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2003+ 2003
------------- ------------
FROM OPERATIONS
Net Investment Loss ............................................. $ (289,915) $ (168,458)
Net Realized Gain (Loss) on Investments ......................... 5,708,464 (24,197,329)
Net Change in Unrealized Appreciation
on Investments ................................................ 5,696,529 73,823
----------- ------------
Net Increase (Decrease) in Net Assets
from Operations ............................................... 11,115,078 (24,291,964)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) ............................ -- --
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (NOTE 7) ........................................... 14,614,138 53,470,374
----------- ------------
Net Increase in Net Assets ...................................... 25,729,216 29,178,410
NET ASSETS--BEGINNING OF PERIOD ................................... 52,383,531 23,205,121
----------- ------------
NET ASSETS--END OF PERIOD (NOTE 8) ................................ $78,112,747 $ 52,383,531
=========== ============
+ UNAUDITED.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 23
- --------------------------------------------------------------------------------
This page intentionally left blank.
24
and
SEMI-ANNUAL REPORT 25
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------------
H CLASS H CLASS
------------------------ ------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
------------------------ ------------------------------------------
PERIOD PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2003++ 2003* 2003++ 2003 2002*
------------- --------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING
OF PERIOD ................................ $10.15 $10.00 $7.58 $9.99 $10.00
-------- -------- -------- -------- --------
Net Investment Income (Loss)+ .............. -- .01 (.03) (.01) --
Net Realized and Unrealized Gains
(Losses) on Securities ................... 2.21 .14 1.69 (2.40) (.01)
-------- -------- -------- -------- --------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ................ 2.21 .15 1.66 (2.41) (.01)
DISTRIBUTIONS TO SHAREHOLDERS .............. -- -- -- -- --
-------- -------- -------- -------- --------
Net Increase (Decrease) in
Net Asset Value .......................... 2.21 .15 1.66 (2.41) (.01)
-------- -------- -------- -------- --------
NET ASSET VALUE--END OF PERIOD ............. $12.36 $10.15 $9.24 $7.58 $9.99
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN .................... 21.77% 1.50% 21.90% (24.12)% (0.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ............................. 1.52%** 1.67%** 1.63%** 1.68% 1.69%**
Net Expenses ............................... 1.52%** 1.67%** 1.63%** 1.68% 1.69%**
Net Investment Income (Loss) ............... 0.05%** 0.22%** (0.60)%** (0.08)% (1.13)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ................. 139% 123% 202% 451% --
Net Assets, End of Period
(000's omitted) .......................... $32,628 $18,516 $49,511 $34,845 $18,055
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 22, 2002--SECTOR ROTATION FUND;
SEPTEMBER 23, 2002--CORE EQUITY FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
See Notes to Financial Statements.
26
and
SEMI-ANNUAL REPORT 27
FINANCIAL HIGHLIGHTS(CONCLUDED)
- -----------------------------------------------------------------------------------------------------------------------------------
C CLASS C CLASS
------------------------ ------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
------------------------ ------------------------------------------
PERIOD PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2003++ 2003* 2003++ 2003 2002*
------------- --------- ------------- --------- ---------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE--BEGINNING
OF PERIOD ................................ $10.11 $10.00 $7.53 $9.99 $10.00
-------- -------- -------- -------- --------
Net Investment Loss+ ....................... (.04) (.03) (.06) (.07) --
Net Realized and Unrealized Gains
(Losses) on Securities ................... 2.19 .14 1.66 (2.39) (.01)
-------- -------- -------- -------- --------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations ................ 2.15 .11 1.60 (2.46) (.01)
DISTRIBUTIONS TO SHAREHOLDERS .............. -- -- -- -- --
-------- -------- -------- -------- --------
Net Increase (Decrease) in
Net Asset Value .......................... 2.15 .11 1.60 (2.46) (.01)
-------- -------- -------- -------- --------
NET ASSET VALUE--END OF
PERIOD ................................... $12.26 $10.11 $9.13 $7.53 $9.99
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN .................... 21.27% 1.10% 21.25% (24.62)% (0.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses ............................. 2.26%** 2.41%** 2.38%** 2.44% 2.44%**
Net Expenses ............................... 2.26%** 2.41%** 2.38%** 2.44% 2.44%**
Net Investment Loss ........................ (0.71)%** (0.48)%** (1.35)%** (0.83)% (1.86)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** ................. 139% 123% 202% 451% --
Net Assets, End of Period
(000's omitted) .......................... $15,740 $5,771 $28,601 $17,538 $5,150
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 22, 2002--SECTOR ROTATION FUND;
SEPTEMBER 23, 2002--CORE EQUITY FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
++ UNAUDITED.
See Notes to Financial Statements.
28
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") are registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as
a non-diversified, open-ended investment company, and are authorized to issue an
unlimited number of shares. The Trust offers five separate classes of shares,
Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares, and
Institutional Class Shares. Sales of shares of each Class are made without a
sales charge at the net asset value per share. C Class Shares have a 1%
Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12
months of purchase. At September 30, 2003, the Trust consisted of thirty-four
separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen
Sector Funds, and two Strategic Funds. This report covers the Strategic Funds
(the "Funds"), while the Money Market and Benchmark Funds and the Sector Funds
are contained in separate reports. As of September 30, 2003, only H Class and C
Class Shares had been issued in the Strategic Funds.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Stock Exchange or American
Stock Exchange) are valued at the last quoted sales price as of close of
business on the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the
valuation date. Equity securities listed on the Nasdaq market system are valued
at the Nasdaq Official Closing Price, usually as of 4:00 p.m., Eastern Time, on
the valuation date. Listed options held by the Trust are valued at their last
bid price. Over-the-counter options held by the Trust are valued using the
average bid price obtained from one or more security dealers. The value of
futures contracts purchased and sold by the Trust is accounted for using the
unrealized gain or loss on the contracts that is determined by marking the
contracts to their current realized settlement prices. Financial futures
contracts are valued at the last quoted sales price as of 4:00 p.m. on the
valuation date. Short-term securities, if any, are valued at amortized cost,
which approximates market value. Securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under direction of the Board of Trustees or by the Advisor
using methods established or ratified by the Board of Trustees.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. Dividend income is recorded on the
ex-dividend date, net of applicable taxes withheld by foreign countries.
Interest income, including amortization of premiums and accretion of discount,
is accrued on a daily basis.
C. Interest and dividend income, most expenses, all realized gains and losses,
and all unrealized gains and losses are allocated to the classes based upon the
value of the outstanding shares in each Class. Certain costs, such as
distribution fees relating to the
SEMI-ANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
H Class Shares and service and distribution fees related to C Class Shares, are
charged directly to specific classes. In addition, certain expenses have been
allocated to the individual Funds in the Trust on a pro rata basis upon the
respective aggregate net assets value of each Fund included in the Trust.
D. Distributions to shareholders are recorded on the ex-dividend date.
Distributions from net investment income and net realized capital gains are
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America. These
differences are primarily due to differing treatments for items such as deferral
of wash sales and post-October losses and regulated futures contracts and
options.
E. Each Strategic Fund seeks long-term capital appreciation and seeks to respond
to the dynamically changing economy by moving its investments among different
sectors or industries. The Funds may also purchase American Depository Receipts
("ADRs") and U.S. Government securities, enter into repurchase agreements, and
engage in futures, options and equity swap transactions. The risks inherent in
the use of futures, options and swaps agreements include 1) adverse changes in
the value of such instruments; 2) imperfect correlation between the price of the
instruments and movements in the price of the underlying securities; 3) the
possible absence of a liquid secondary market for any particular instrument at
any time; and 4) the potential of counterparty default.
F. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
2. FINANCIAL INSTRUMENTS
As part of its investment strategy, the Trust may utilize a variety of
derivative instruments, including options, futures, and swap agreements. These
investments involve, to varying degrees, elements of market risk and risks in
excess of the amounts recognized in the Statements of Assets and Liabilities.
The risk associated with purchasing options is limited to the premium originally
paid. Options written by a fund involve, to varying degrees, risk of loss in
excess of the option value reflected in the Statement of Assets and Liabilities.
The risk in writing a covered call option is that a fund may forego the
opportunity for profit if the market price of the underlying security increases
and the option is exercised. The risk in writing a covered put option is that a
fund may incur a loss if the market price of the underlying security decreases
and the option is exercised. In addition, there is the risk that a fund may not
be able to enter into a closing transaction because of an illiquid secondary
market or, for over-the-counter options, because of the counterparty's inability
to perform. The Trust has
30
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
established strict counterparty credit guidelines and enters into transactions
only with financial institutions of investment grade or better.
There are several risks in connection with the use of futures contracts. Futures
contracts involve, to varying degrees, risk of loss in excess of amounts
reflected in the financial statements. Risks may be caused by an imperfect
correlation between movements in the price of the instruments and the price of
the underlying securities. In addition, there is the risk that a fund may not be
able to enter into a closing transaction because of an illiquid secondary
market.
The use of equity swaps involves risks that are different from those associated
with ordinary portfolio securities transactions. Swap agreements may be
considered to be illiquid. Although a fund will not enter into any swap
agreement unless the Advisor believes that the other party to the transaction is
creditworthy, a fund does bear the risk of loss of the amount expected to be
received under a swap agreement in the event of the default or bankruptcy of the
agreement counterparty. The Trust has established strict counterparty credit
guidelines and enters into transactions only with financial institutions of
investment grade or better.
In conjunction with the use of options, futures, options on futures and swap
agreements, as well as short sales of securities, the Funds are required to
maintain collateral in various forms. The Funds use, where appropriate,
depending on the financial instrument utilized and the broker involved, margin
deposits at the broker, cash segregated at the custodian bank, or the repurchase
agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, and swap agreements include 1) adverse changes in the value of such
instruments; 2) imperfect correlation between the price of the instruments and
movements in the price of the underlying securities, indices, or futures
contracts; 3) the possible absence of a liquid secondary market for any
particular instrument at any time; and 4) the potential of counterparty default.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays Rydex Global
Advisors (the "Advisor"), an affiliated entity, investment advisory fees
calculated at an annualized rate of 0.90% of the average daily net assets of
each of the Strategic Funds. Effective July 1, 2003, the Trustees voted to
reduce Core Equity's basic management fee to 0.70% of the Fund's average daily
net assets and implement a performance adjustment allowing the basic fee to
increase to a maximum of 0.90% or decrease to a minimum of 0.50%, depending on
the investment performance of the Fund relative to the Russell 3000(R) Index
(the "Index"). The performance comparison will be made for a rolling 12-month
period, with performance adjustments made at the end of each month beginning
June 30, 2004. Until June 30, 2004, the effective management fee will remain
constant at 0.70% of the Fund's
SEMI-ANNUAL REPORT 31
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
average daily net assets. Certain officers and trustees of the Trust are also
officers and directors of Rydex Global Advisors.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent services to the Trust for fees calculated at an annualized rate
of 0.25% of the average daily net assets of each of the Strategic Funds.
The Servicer also provides accounting services to the Trust calculated at an
annualized rate of 0.10% on the first $250 million of the average daily net
assets, 0.075% on the next $250 million of the average daily net assets, 0.05%
on the next $250 million of the average daily net assets, and 0.03% on the
average daily net assets over $750 million of each of the Strategic Funds.
Certain officers and trustees of the Trust are also officers and directors of
Rydex Fund Services, Inc.
The Trust has adopted a Distribution Plan (the "Plan") applicable to its H Class
Shares, for which Rydex Distributors, Inc. (the "Distributor"), an affiliated
entity, and other firms that provide distribution and/or shareholder services
("Service Providers") may receive compensation. If a Service Provider provides
distribution services, the Trust will pay fees to the Distributor at an annual
rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of
the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its
fees.
The Trust has adopted a separate Distribution and Shareholder Services Plan (the
"C Class Plan") applicable to its C Class Shares that allows the Funds to pay
annual distribution and service fees of 1.00% of the Funds' C Class Shares
average daily net assets. The annual 0.25% service fee compensates your
financial advisor for providing on-going services to you. The Distributor
retains the service and distribution fees on accounts with no authorized dealer
of record. The annual 0.75% distribution fee reimburses the Distributor for
paying your financial advisor an on-going sales commission. The Distributor
advances the first year's service and distribution fees to your financial
advisor.
Certain officers and trustees of the Trust are also officers and directors of
Rydex Distributors, Inc.
4. FEDERAL INCOME TAX INFORMATION
The Trust intends to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute substantially
all net investment income to its shareholders. Therefore, no Federal income tax
provision is required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for futures and options transactions, foreign currency
transactions, losses deferred due to wash sales, losses deferred due to
post-October losses, and excise tax regulations.
32
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Permanent book and tax basis differences, if any, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
the utilization of earnings and profits distributed to shareholders on
redemption of shares as part of the dividends paid deduction for income tax
purposes, net operating losses not utilized during the current year, and
differences in the treatment of certain notional principal contracts (e.g.
financial futures contracts). These reclassifications have no effect on net
assets or net asset values per share. Any taxable gain remaining at fiscal year
end is distributed in the following year.
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At September 30, 2003, 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 NET
TAX UNREALIZED UNREALIZED UNREALIZED
FUND COST GAIN LOSS GAIN
- ------ ----------- ---------- ----------- ----------
Core Equity Fund ................ $45,540,828 $4,272,981 $ (570,431) $3,702,550
Sector Rotation Fund ............ 72,527,770 8,384,250 (1,789,619) 6,594,631
5. REPURCHASE AGREEMENTS
The Trust transfers uninvested cash balances into a single joint account, along
with uninvested cash of the Rydex Dynamic Funds, a separate Trust, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by obligations of the U.S. Treasury or U.S. Government Agencies.
The collateral is in the possession of the Trusts' custodians and is evaluated
daily to ensure that its market value exceeds the delivery value of the
repurchase agreements at maturity.
The repurchase agreements that were executed by the joint account and
outstanding as of September 30, 2003, are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- --------------- ------------------ ------------ ------------ --------------
Salomon Smith Barney, Inc. ....... 0.90% due 10/1/03 $240,000,000 $240,000,000 $240,005,918
U.S. Bank NA ..................... 0.96% due 10/1/03 170,000,000 170,000,000 170,004,471
Paine Webber, Inc. ............... 0.93% due 10/1/03 170,000,000 170,000,000 170,004,332
Morgan Stanley, Inc. ............. 0.91% due 10/1/03 170,000,000 170,000,000 170,004,238
Lehman Brothers, Inc. ............ 0.94% due 10/1/03 12,101,668 12,101,668 12,101,980
------------ ------------
$762,101,668 $762,120,939
============ ============
SEMI-ANNUAL REPORT 33
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
As of September 30, 2003, the collateral for the repurchase agreements in the
joint account was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- --------------- --------------- ------------ ------------
U. S. Treasury Bonds ............. 3.875% - 5.375% $268,291,421 $312,444,509
U. S. Treasury Notes ............. 0.000% - 7.000% 257,405,610 293,257,361
Ginnie Mae ....................... 4.500% - 5.000% 174,032,279 173,848,577
------------
$779,550,447
============
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 credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
6. SECURITIES TRANSACTIONS
During the period ended September 30, 2003, purchases and sales of investment
securities, excluding short-term and temporary cash investments, were:
CORE SECTOR
EQUITY ROTATION
FUND FUND
----------- ------------
Purchases ............................... $67,445,856 $145,771,802
Sales ................................... $49,928,973 $129,873,034
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of shares.
Transactions in shares for the period ended September 30, 2003 were:
H CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
----------- ------------
Shares Purchased ................................... 3,718,233 3,611,615
Purchased through Dividend Reinvestment ............ -- --
----------- ------------
Total Purchased .................................... 3,718,233 3,611,615
Shares Redeemed .................................... (2,902,166) (2,845,961)
----------- ------------
Net Shares Purchased ............................... 816,067 765,654
=========== ============
C CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
----------- ------------
Shares Purchased ................................... 849,691 1,261,809
Purchased through Dividend Reinvestment ............ -- --
----------- ------------
Total Purchased .................................... 849,691 1,261,809
Shares Redeemed .................................... (136,431) (460,138)
----------- ------------
Net Shares Purchased ............................... 713,260 801,671
=========== ============
34
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Transactions in shares for the period ended March 31, 2003 were:
H CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ ------------
Shares Purchased ................................... 4,450,764 14,679,220
Purchased through Dividend Reinvestment ............ -- --
------------ ------------
Total Purchased .................................... 4,450,764 14,679,220
Shares Redeemed .................................... (2,627,165) (11,890,532)
------------ ------------
Net Shares Purchased ............................... 1,823,599 2,788,688
============ ============
C CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ ------------
Shares Purchased ................................... 659,414 2,543,273
Purchased through Dividend Reinvestment ............ -- --
------------ ------------
Total Purchased .................................... 659,414 2,543,273
Shares Redeemed .................................... (88,698) (729,369)
------------ ------------
Net Shares Purchased ............................... 570,716 1,813,904
============ ============
Transactions in dollars for the period ended September 30, 2003 were:
H CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ ------------
Shares Purchased ................................... $45,228,190 $32,797,641
Purchased through Dividend Reinvestment ............ -- --
------------ ------------
Total Purchased .................................... 45,228,190 32,797,641
Shares Redeemed .................................... (35,295,458) (25,383,426)
------------ ------------
Net Change ......................................... $ 9,932,732 $ 7,414,215
============ ============
C CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ ------------
Shares Purchased ................................... $9,844,840 $11,186,742
Purchased through Dividend Reinvestment ............ -- --
------------ ------------
Total Purchased .................................... 9,844,840 11,186,742
Shares Redeemed .................................... (1,599,260) (3,986,819)
------------ ------------
Net Change ......................................... $8,245,580 $ 7,199,923
============ ============
SEMI-ANNUAL REPORT 35
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
Transactions in dollars for the period ended March 31, 2003 were:
H CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ -------------
Shares Purchased ........................................... $47,161,455 $135,343,128
Purchased through Dividend Reinvestment .................... -- --
------------ -------------
Total Purchased ............................................ 47,161,455 135,343,128
Shares Redeemed ............................................ (27,778,040) (98,871,904)
------------ -------------
Net Change ................................................. $19,383,415 $ 36,471,224
============ =============
C CLASS: CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ -------------
Shares Purchased ........................................... $6,906,677 $22,911,212
Purchased through Dividend Reinvestment .................... -- --
------------ -------------
Total Purchased ............................................ 6,906,677 22,911,212
Shares Redeemed ............................................ (910,390) (5,912,062)
------------ -------------
Net Change ................................................. $5,996,287 $16,999,150
============ =============
8. NET ASSETS
At September 30, 2003, net assets consisted of:
CORE SECTOR
EQUITY ROTATION
FUND FUND
------------ -------------
Paid-In Capital ............................................ $43,563,555 $91,075,239
Undistributed Net Investment Loss .......................... (35,178) (289,915)
Accumulated Net Realized Gain (Loss) on Investments and
Futures Contracts .......................................... 1,880,657 (18,488,865)
Net Unrealized Appreciation on
Investments and Futures Contracts .......................... 2,958,609 5,816,288
------------ -------------
Net Assets ................................................. $48,367,643 $78,112,747
============ =============
9. CHANGE IN INDEPENDENT AUDITORS
Effective August 25, 2003, the Trust has retained PricewaterhouseCoopers LLP to
serve as the Trust's independent auditors.
10. 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 site at
http://www.sec.gov.
36
- --------------------------------------------------------------------------------
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SEMI-ANNUAL REPORT 37
- --------------------------------------------------------------------------------
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[LOGO OMITTED]
RYDEX INVESTMENTS
ESSENTIAL FOR MODERN MARKETS TM
9601 Blackwell Road
Suite 500
Rockville,MD 20850
800.820.0888
www.rydexfunds.com
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) There were no significant deficiencies in the design or operation of the
internal controls of the Trust or PADCO Advisors, Inc., the investment advisor
and manager of the Trust which would have adversely affected the ability of the
Trust, or PADCO Advisors, Inc. on behalf of the Trust, to record, process,
summarize, and report the subject matter contained in this Report, and PADCO
Advisors, Inc. has identified no material weaknesses in such internal controls
on behalf of the Trust.
There was no fraud, whether or not material, involving officers or employees of
PADCO Advisors, Inc., Rydex Distributors, Inc., or the Trust who have a
significant role in the Trust's internal controls that has come to the attention
of PADCO Advisors, Inc. or the officers of the Trust.
(b) There were no significant changes in PADCO Advisors, Inc.'s internal
controls that apply to the Trust or in other factors with respect to the Trust
that could significantly affect the Trust's
or PADCO Advisors, Inc.'s internal controls during the period covered by this
Form N-CSR, and no corrective actions with regard to significant deficiencies or
material weaknesses were taken by the Trust or PADCO Advisors, Inc. during such
period.
ITEM 10. EXHIBITS.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable at
this time.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Rydex Series Funds
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By (Signature and Title)* /s/ Carl G. Verboncoeur
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Carl G. Verboncoeur, Principal Executive Officer
Date November 24, 2003
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Carl G. Verboncoeur
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Carl G. Verboncoeur, Principal Executive Officer
Date November 24, 2003
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By (Signature and Title)* /s/ Carl G. Verboncoeur
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Carl G. Verboncoeur, Vice President & Treasurer
Date November 24, 2003
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* Print the name and title of each signing officer under his or her signature.