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, 2005
Date of reporting period: SEPTEMBER 30, 2004
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, 2004
NOVA FUND
URSA FUND
OTC FUND
ARKTOS FUND
MEDIUS FUND
INVERSE MID-CAP FUND
MEKROS FUND
INVERSE SMALL-CAP FUND
U.S. GOVERNMENT BOND FUND
JUNO FUND
LARGE-CAP EUROPE FUND
LARGE-CAP JAPAN FUND
SMALL-CAP VALUE FUND
MID-CAP VALUE FUND
LARGE-CAP VALUE FUND
SMALL-CAP GROWTH FUND
MID-CAP GROWTH FUND
LARGE-CAP GROWTH FUND
U.S. GOVERNMENT MONEY MARKET FUND
NOVA MASTER PORTFOLIO
URSA MASTER PORTFOLIO
ARKTOS MASTER PORTFOLIO
JUNO MASTER PORTFOLIO
[LOGO] RYDEXInvestments
RBENF-SEMI-0904 Essential for modern markets(TM)
This report and the financial statements contained herein are submitted for the
general information of our shareholders. The report is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ................................................. 2
ABOUT SHAREHOLDERS FUND'S EXPENSES ......................................... 3
FUND PROFILES .............................................................. 8
BENCHMARK FUNDS
SCHEDULES OF INVESTMENTS ................................................ 18
STATEMENTS OF ASSETS AND LIABILITIES .................................... 70
STATEMENTS OF OPERATIONS ................................................ 74
STATEMENTS OF CHANGES IN NET ASSETS ..................................... 78
FINANCIAL HIGHLIGHTS .................................................... 84
BENCHMARK PORTFOLIOS
SCHEDULES OF INVESTMENTS ................................................ 91
STATEMENTS OF ASSETS AND LIABILITIES .................................... 100
STATEMENTS OF OPERATIONS ................................................ 101
STATEMENTS OF CHANGES IN NET ASSETS ..................................... 102
FINANCIAL HIGHLIGHTS .................................................... 104
NOTES TO FINANCIAL STATEMENTS .............................................. 105
UNAUDITED PROXY VOTING INFORMATION ......................................... 115
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................... 116
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The U.S. economy reached a more mature phase of the business cycle during the
six-month period ending September 30, 2004. This phenomenon was marked by lower
realized and forecasted gross domestic product (GDP) growth rates, reduced
forecasts for future corporate earnings growth and a cumulative reported one
million jobs created during the period. The Federal Reserve (Fed), observing
these changes, raised the Fed Funds rate three times between June 30 and
September 21. Inflation, as measured both by the Consumer Price Index (+1.7%)
and Producer Price Index (+1.9%), rose during this time period.
Equity markets moved in a tight trading range over the period. Most broad-based
equity indices ended the period with slightly negative returns. The S&P 500(R)
Index was down slightly, returning -0.18% over the period. Large-cap stocks
tended to outperform small-cap stocks and the S&P 500 outperformed the S&P
MidCap 400 TM and Russell 2000(R) indices, which returned -1.15% and -2.40%,
respectively. Political and economic uncertainty led investors to return to the
relative safety of large-cap stocks. The S&P 500 also outperformed the Nasdaq
100 Index(R), which posted a return of -1.79%.
There was good news, though. Between the end of March and September, the
unemployment rate experienced a slight decline, moving from 5.6% to 5.4%.The
improvement was driven in part by a 2.8% rebound in manufacturing payrolls.
RYDEX VALUE AND GROWTH FUNDS
During a period that demonstrated no clear direction for the economy, investors
gravitated toward the generally perceived less risky value stocks, which
outperformed growth stocks. For large-cap stocks, the S&P 500/Barra Value Index
rose 0.81%, 3.70% more than the S&P 500/Barra Growth Index, which slid
- -2.89%.The S&P MidCap 400/Barra Value Index fell 0.39% during the period,
outpacing the -2.64% return of the S&P MidCap 400/Barra Growth Index. Likewise,
the S&P SmallCap 600/Barra Value Index outperformed the S&P SmallCap 600/Barra
Growth Index by 1.54%, with both indices returning 2.51% and 0.97%,
respectively. In line with the market trend of value outperforming growth, Rydex
Small-Cap Value Fund H-Class returned a positive 2.54%, while Rydex Large-Cap
Growth Fund H-Class returned -3.60%.
RYDEX INTERNATIONAL FUNDS
International stocks were mixed as European stocks rose and Japanese stocks fell
during the past six months. Stronger growth prospects and controlled inflation
helped to increase stock prices in Europe. Japanese stocks sold off in May when
the market became concerned about a possible slow down in China's economy. The
Dow Jones Stoxx SM 50 Index rose 0.20% in U.S. dollar terms while the Topix 100
Index fell 7.82% in U.S. dollar terms. Returns in Europe benefited from a 1%
appreciation of the euro while Japanese returns were hurt by a 5% depreciation
of the yen. Rydex Large-Cap Europe Fund H-Class was up 2.74% and Rydex Large-Cap
Japan Fund H-Class closed the period down -17.14%.
RYDEX BOND FUNDS
The price of the Long Bond fell during April and May, raising the yield to a
high of 5.56%, as an increase in inflation led investors to anticipate higher
yields long term. In mid-June, core CPI came in below forecasts for the first
time this year and Fed Chairman Alan Greenspan strongly reiterated the Fed's
stance to raise rates at a "measured pace," removing inflationary pressures from
the market. This outlook, along with increasing oil prices, prompted the Long
Bond to rally and the yield to tumble to a low of 4.77% on September 27, 2004,
and move up slightly to 4.90% to close out the period. With the rise in price of
the Long Bond and the corresponding drop in yield, Rydex Juno Fund Investor
Class, which seeks to provide total returns that will inversely correlate to the
current LongTreasury Bond, turned from positive to negative and closed out the
period with a total return of -1.21%. As the price of the bond moved higher,
Rydex U.S. Government Bond Fund Investor Class did an about-face from its
negative position, returning a positive 0.45%.
As always, we 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
President
2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES
- --------------------------------------------------------------------------------
All mutual funds have operating expenses and it is important for our
shareholders to understand the impact of costs on their investments. As a
shareholder of the fund, you may incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, reinvested
dividends, or other distributions; redemption fees; and exchange fees; and (2)
ongoing costs, including management fees, administrative services, and
shareholder reports, among others. Operating expenses, which are deducted from a
fund's gross income, reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets,
which is known as the expense ratio. The following examples are intended to
help you understand your ongoing costs (in dollars) of investing in the Fund
and to compare these costs with the ongoing costs of investing in other mutual
funds. The examples are based on an investment of $1,000 made at the beginning
of the period and held for the entire six-month period beginning March 31, 2004
and ending September 30, 2004.
The following tables illustrate your fund's costs in two ways:
TABLE 1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the actual
expenses that you paid over the period. The "Ending Account Value" shown is
derived from the fund's actual return, and the fourth column shows the dollar
amount that would have been paid by an investor who started with $1,000 in
the fund. You may use the information here, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number given for
your fund under the heading "Expenses Paid During Period."
Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are
charged an annual $15 maintenance fee. Upon liquidating your retirement
account, a $15 account-closing fee will be taken from the proceeds of your
redemption.
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your fund's cost with those of other mutual funds. The table provides
information about hypothetical account values and hypothetical expenses based
on the fund's actual expense ratio and an assumed rate of return of 5% per
year before expenses, which is not the fund's actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid during the period. In addition, certain
retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an
annual $15 maintenance fee. Upon liquidating your retirement account, a $15
account-closing fee will be taken from the proceeds of your redemption. The
example is useful in making comparisons because the Securities Exchange
Commission requires all mutual funds to calculate expenses based on the 5%
return. You can assess your fund's costs by comparing this hypothetical
example with the hypothetical examples that appear in shareholder reports of
other funds.
The calculations above assume no shares were bought or sold during the
period. Your actual costs may have been higher or lower, depending on the amount
of your investment and the timing of any purchases or redemptions.
Note that the expenses shown in the table are meant to highlight and help you
compare ongoing costs only and do not reflect any transactional costs which may
be incurred by some of the fund's classes. These costs may include, but are not
limited to, sales charges (loads), redemption fees, and exchange fees.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
You can find more information about the fund's expenses, including annual
expense ratios for the past five years, in the Financial Highlights section of
this report. For additional information on operating expenses and other
shareholder costs, please refer to the appropriate fund prospectus.
TABLE 1. BASED ON ACTUAL FUND RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- -------------------------------------------------------------------------------------------------------
NOVA FUND
Investor Class 1.25%++ $ 1,000.00 $ 984.20 $ 6.22
Advisor Class 1.74%++ 1,000.00 981.60 8.64
A-Class 1.50%++ 1,000.00 982.90 7.46
C-Class 2.24%++ 1,000.00 979.00 11.11
URSA FUND
Investor Class 1.39%++ 1,000.00 1,002.20 6.98
Advisor Class 1.88%++ 1,000.00 1,000.00 9.43
A-Class 1.64%++ 1,000.00 1,000.00 8.22
C-Class 2.38%++ 1,000.00 996.60 11.91
OTC FUND
Investor Class 1.22% 1,000.00 975.30 6.04
Advisor Class 1.71% 1,000.00 972.50 8.46
A-Class 1.48% 1,000.00 973.60 7.32
C-Class 2.21% 1,000.00 969.20 10.91
ARKTOS FUND
Investor Class 1.40%++ 1,000.00 1,003.10 7.03
Advisor Class 1.90%++ 1,000.00 1,000.40 9.53
A-Class 1.65%++ 1,000.00 1,002.30 8.28
C-Class 2.39%++ 1,000.00 998.00 11.97
MEDIUS FUND
A-Class 1.66% 1,000.00 963.30 8.17
C-Class 2.40% 1,000.00 959.70 11.79
H-Class 1.65% 1,000.00 962.90 8.12
INVERSE MID-CAP FUND
A-Class 1.65% 1,000.00 1,000.00 8.27
C-Class 2.40% 1,000.00 996.10 12.01
H-Class 1.65% 1,000.00 999.80 8.27
MEKROS FUND
A-Class 1.67% 1,000.00 952.30 8.17
C-Class 2.40% 1,000.00 948.50 11.72
H-Class 1.65% 1,000.00 951.90 8.07
INVERSE SMALL-CAP FUND
A-Class 1.66% 1,000.00 1,018.20 8.40
C-Class 2.40% 1,000.00 1,014.40 12.12
H-Class 1.65% 1,000.00 1,017.80 8.35
U.S. GOVERNMENT BOND FUND
Investor Class 0.95% 1,000.00 1,004.50 4.77
Advisor Class 1.46% 1,000.00 1,003.00 7.33
A-Class 1.21% 1,000.00 1,002.30 6.07
C-Class 1.95% 1,000.00 1,000.30 9.78
See Notes to Financial Statements.
4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- -------------------------------------------------------------------------------------------------------
JUNO FUND
Investor Class 1.34%++ $ 1,000.00 $ 987.90 $ 6.68
Advisor Class 1.84%++ 1,000.00 984.80 9.16
A-Class 1.60%++ 1,000.00 986.30 7.97
C-Class 2.34%++ 1,000.00 982.80 11.63
LARGE-CAP EUROPE FUND
A-Class 1.65% 1,000.00 1,026.70 8.38
C-Class 2.40% 1,000.00 1,022.60 12.17
H-Class 1.65% 1,000.00 1,027.40 8.39
LARGE-CAP JAPAN FUND
A-Class 1.65% 1,000.00 828.00 7.56
C-Class 2.40% 1,000.00 825.00 10.98
H-Class 1.64% 1,000.00 828.60 7.52
SMALL-CAP VALUE FUND
A-Class 1.55% 1,000.00 1,038.80 7.92
C-Class 2.25% 1,000.00 1,021.10 11.40
H-Class 1.51% 1,000.00 1,025.40 7.67
MID-CAP VALUE FUND
A-Class 1.57% 1,000.00 1,019.50 7.95
C-Class 2.26% 1,000.00 994.80 11.30
H-Class 1.52% 1,000.00 997.60 7.61
LARGE-CAP VALUE FUND
A-Class 1.63% 1,000.00 1,016.20 8.24
C-Class 2.25% 1,000.00 1,005.60 11.31
H-Class 1.51% 1,000.00 1,008.40 7.60
SMALL-CAP GROWTH FUND
A-Class 1.68% 1,000.00 1,042.20 8.60
C-Class 2.25% 1,000.00 1,002.00 11.29
H-Class 1.52% 1,000.00 1,004.70 7.64
MID-CAP GROWTH FUND
A-Class 1.62% 1,000.00 1,016.70 8.19
C-Class 2.25% 1,000.00 963.40 11.07
H-Class 1.51% 1,000.00 966.60 7.44
LARGE-CAP GROWTH FUND
A-Class 1.56% 1,000.00 994.50 7.80
C-Class 2.26% 1,000.00 960.30 11.11
H-Class 1.52% 1,000.00 964.00 7.48
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class 0.90% 1,000.00 1,001.50 4.52
Advisor Class 1.17% 1,000.00 1,000.20 5.87
A-Class 1.14% 1,000.00 1,000.60 5.72
C-Class 1.21% 1,000.00 1,000.00 6.07
Institutional Class 0.55% 1,000.00 1,003.30 2.76
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- -------------------------------------------------------------------------------------------------------
NOVA FUND
Investor Class 1.25%++ $ 1,000.00 $ 1,043.58 $ 6.42
Advisor Class 1.74%++ 1,000.00 1,041.06 8.94
A-Class 1.50%++ 1,000.00 1,042.29 7.71
C-Class 2.24%++ 1,000.00 1,038.49 11.51
URSA FUND
Investor Class 1.39%++ 1,000.00 1,042.86 7.14
Advisor Class 1.88%++ 1,000.00 1,040.34 9.66
A-Class 1.64%++ 1,000.00 1,041.57 8.43
C-Class 2.38%++ 1,000.00 1,037.77 12.23
OTC FUND
Investor Class 1.22% 1,000.00 1,043.73 6.27
Advisor Class 1.71% 1,000.00 1,041.21 8.79
A-Class 1.48% 1,000.00 1,042.39 7.61
C-Class 2.21% 1,000.00 1,038.64 11.36
ARKTOS FUND
Investor Class 1.40%++ 1,000.00 1,042.81 7.19
Advisor Class 1.90%++ 1,000.00 1,040.24 9.76
A-Class 1.65%++ 1,000.00 1,041.52 8.48
C-Class 2.39%++ 1,000.00 1,037.72 12.28
MEDIUS FUND
A-Class 1.66% 1,000.00 1,041.47 8.53
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.65% 1,000.00 1,041.52 8.48
INVERSE MID-CAP FUND
A-Class 1.65% 1,000.00 1,041.52 8.48
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.65% 1,000.00 1,041.52 8.48
MEKROS FUND
A-Class 1.67% 1,000.00 1,041.42 8.58
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.65% 1,000.00 1,041.52 8.48
INVERSE SMALL-CAP FUND
A-Class 1.66% 1,000.00 1,041.47 8.53
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.65% 1,000.00 1,041.52 8.48
U.S. GOVERNMENT BOND FUND
Investor Class 0.95% 1,000.00 1,045.12 4.88
Advisor Class 1.46% 1,000.00 1,042.50 7.50
A-Class 1.21% 1,000.00 1,043.78 6.22
C-Class 1.95% 1,000.00 1,039.98 10.02
JUNO FUND
Investor Class 1.34%++ 1,000.00 1,043.11 6.89
Advisor Class 1.84%++ 1,000.00 1,040.54 9.46
A-Class 1.60%++ 1,000.00 1,041.78 8.22
C-Class 2.34%++ 1,000.00 1,037.97 12.03
See Notes to Financial Statements.
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- -------------------------------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
A-Class 1.65% $ 1,000.00 $ 1,041.52 $ 8.48
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.65% 1,000.00 1,041.52 8.48
LARGE-CAP JAPAN FUND
A-Class 1.65% 1,000.00 1,041.52 8.48
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.64% 1,000.00 1,041.57 8.43
SMALL-CAP VALUE FUND
A-Class 1.55% 1,000.00 1,042.03 7.97
C-Class 2.25% 1,000.00 1,038.44 11.56
H-Class 1.51% 1,000.00 1,042.24 7.76
MID-CAP VALUE FUND
A-Class 1.57% 1,000.00 1,041.93 8.07
C-Class 2.26% 1,000.00 1,038.39 11.61
H-Class 1.52% 1,000.00 1,042.19 7.81
LARGE-CAP VALUE FUND
A-Class 1.63% 1,000.00 1,041.62 8.38
C-Class 2.25% 1,000.00 1,038.44 11.56
H-Class 1.51% 1,000.00 1,042.24 7.76
SMALL-CAP GROWTH FUND
A-Class 1.68% 1,000.00 1,041.37 8.63
C-Class 2.25% 1,000.00 1,038.44 11.56
H-Class 1.52% 1,000.00 1,042.19 7.81
MID-CAP GROWTH FUND
A-Class 1.62% 1,000.00 1,041.67 8.33
C-Class 2.25% 1,000.00 1,038.44 11.56
H-Class 1.51% 1,000.00 1,042.24 7.76
LARGE-CAP GROWTH FUND
A-Class 1.56% 1,000.00 1,041.98 8.02
C-Class 2.26% 1,000.00 1,038.39 11.61
H-Class 1.52% 1,000.00 1,042.19 7.81
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class 0.90% 1,000.00 1,045.37 4.63
Advisor Class 1.17% 1,000.00 1,043.99 6.01
A-Class 1.14% 1,000.00 1,044.14 5.86
C-Class 1.21% 1,000.00 1,043.78 6.22
Institutional Class 0.55% 1,000.00 1,047.17 2.83
- -------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNULAIZED EXPENSE RATIO, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS
IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365.
+ ANNUALIZED
++ EXPENSE RATIO INCLUDES EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7
FUND PROFILES
- --------------------------------------------------------------------------------
NOVA FUND
OBJECTIVE: To provide investment returns that correspond to 150% of the
daily performance of the S&P 500 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification
Exposure" on the Beta (Market Exposure as %
Industries testing worksheet) of Net Assets) S&P Breakdown
- ------------------------------------------------------------------------------------------------------------
Financials 50,219,492.00 18.1% 20.6%
Information Technology 40,623,680.00 14.7% 15.8%
Health Care 31,826,202.00 11.5% 13.1%
Industrials 28,923,903.00 10.5% 11.6%
Consumer Discretionary 27,837,980.00 10.1% 11.1%
Consumer Staples 26,984,874.00 9.8% 10.7%
Energy 18,500,695.00 6.7% 7.4%
Telecommunication Services 9,160,017.00 3.3% 3.7%
Materials 7,979,862.00 2.9% 3.1%
Utilities 7,165,878.00 2.6% 2.9%
Futures Contracts (Market Value) 166,506,300.00 60.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
Investor Class July 12, 1993
Advisor Class October 15, 1998
A-Class March 31, 2004
C-Class March 14, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
General Electric Co. 2.8%
Exxon Mobil Corp. 2.3%
Pfizer, Inc. 2.3%
Microsoft Corp. 2.2%
Johnson & Johnson 1.8%
Citigroup, Inc. 1.6%
Wal-Mart Stores, Inc. 1.6%
International Business Machines Corp. 1.5%
ChevronTexaco Corp. 1.3%
Intel Corp. 1.3%
- ------------------------------------------------
Top Ten Total 18.7%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
URSA FUND
OBJECTIVE: To provide investment returns that inversely correspond to the
daily performance of the S&P 500 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification
Exposure" on the Beta (Market Exposure as %
INDUSTRIES testing worksheet) of Net Assets) S&P Breakdown
- ------------------------------------------------------------------------------------------------------------
Financials -- 0.0% 20.6%
Information Technology -- 0.0% 15.8%
Health Care -- 0.0% 13.1%
Industrials -- 0.0% 11.6%
Consumer Discretionary -- 0.0% 11.1%
Consumer Staples -- 0.0% 10.7%
Energy -- 0.0% 7.4%
Telecommunication Services -- 0.0% 3.7%
Materials -- 0.0% 3.1%
Utilities -- 0.0% 2.9%
Futures Contracts (Market Value) (456,387,750.00) -77.9%
Equity Index Swap Agreements (130,229,794.00) -22.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
Investor Class January 7, 1994
Advisor Class August 5, 1998
A-Class March 31, 2004
C-Class March 15, 2001
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
OTC FUND
OBJECTIVE: To provide investment returns that correspond to the daily
performance of the Nasdaq 100 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification
the Beta testing (Market Exposure as % Nasdaq
INDUSTRIES worksheet) of Net Assets) breakdown
- ------------------------------------------------------------------------------------------------------------
Information Technology 492,893,677.00 57.7% 49.0%
Consumer Discretionary 139,109,109.00 16.3% 18.0%
Health Care 120,638,388.00 14.1% 16.0%
Industrials 41,938,701.00 4.9% 9.0%
Telecommunication Services 24,949,904.00 2.9% 2.0%
Consumer Staples 10,960,265.00 1.3% 3.0%
Materials 6,309,664.00 0.7% 2.0%
Energy 2,723,959.00 0.3% 1.0%
Futures Contracts (Market Value) 14,301,600.00 1.7% 0.0%
Technology -- 0.0% 0.0%
Communications -- 0.0% 0.0%
Consumer, Cyclical -- 0.0% 0.0%
Consumer, Non-Cyclical -- 0.0% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
Investor Class February 14, 1994
Advisor Class September 22, 1998
A-Class March 31, 2004
C-Class March 26, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
Microsoft Corp. 9.9%
Qualcomm, Inc. 6.5%
Intel Corp. 4.5%
eBay, Inc. 3.8%
Cisco Systems, Inc. 3.8%
Oracle Corp. 2.9%
Nextel Communications, Inc. -- Class A 2.8%
Amgen, Inc. 2.5%
Starbucks Corp. 2.1%
Dell, Inc. 2.1%
- ------------------------------------------------
Top Ten Total 40.9%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
ARKTOS FUND
OBJECTIVE: To provide investment returns that inversely correspond to the
daily performance of the Nasdaq 100 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification
the Beta testing (Market Exposure as % Nasdaq
INDUSTRIES worksheet) of Net Assets) breakdown
- ------------------------------------------------------------------------------------------------------------
Information Technology -- 0.0% 49.0%
Consumer Discretionary -- 0.0% 18.0%
Health Care -- 0.0% 16.0%
Industrials -- 0.0% 9.0%
Telecommunication Services -- 0.0% 2.0%
Consumer Staples -- 0.0% 3.0%
Materials -- 0.0% 2.0%
Energy -- 0.0% 1.0%
Futures Contracts (Market Value) (93,880,800.00) -32.3% 0.0%
Equity Index Swap Agreements (197,133,433.00) -67.8% 0.0%
Technology -- 0.0% 0.0%
Communications -- 0.0% 0.0%
Consumer, Cyclical -- 0.0% 0.0%
Consumer, Non-Cyclical -- 0.0% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
Investor Class September 3, 1998
Advisor Class August 1, 2003
A-Class March 31, 2004
C-Class March 7, 2001
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MEDIUS FUND
OBJECTIVE: To provide investment returns that correspond to 150% of the daily
performance of the S&P MidCap 400 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should
equal "Total SOI Holdings
Exposure" on the Diversification S&P MidCap
Beta testing (Market Exposure as % 400
INDUSTRIES worksheet) of Net Assets) breakdown
- ------------------------------------------------------------------------------------------------------------
Financials 5,606,128.00 12.0% 19.4%
Consumer Discretionary 5,534,434.00 11.8% 18.5%
Information Technology 4,281,140.00 9.2% 14.1%
Industrials 3,715,782.00 8.0% 12.7%
Health Care 3,069,671.00 6.6% 10.1%
Energy 2,523,771.00 5.4% 8.3%
Utilities 2,088,260.00 4.5% 6.9%
Materials 1,476,382.00 3.2% 4.9%
Consumer Staples 1,395,964.00 3.0% 4.5%
Telecommunication Service 182,649.00 0.4% 0.6%
Futures Contracts (Market Value) 26,538,390.00 56.8% 0.0%
Equity Index Swap Agreements 13,293,524.00 28.5% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class March 31, 2004
C-Class August 20, 2001
H-Class August 16, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
XTO Energy, Inc. 0.7%
Harman International Industries, Inc. 0.6%
Millennium Pharmaceuticals, Inc. 0.6%
Commerce Bancorp/Cherry Hill NJ, Inc. 0.6%
Banknorth Group, Inc. 0.6%
Everest Re Group Ltd. 0.6%
Dentsply International, Inc. 0.6%
Pepco Holdings, Inc. 0.6%
Cadence Design Systems, Inc. 0.6%
Energy East Corp. 0.6%
- ------------------------------------------------
Top Ten Total 6.1%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
INVERSE MID-CAP FUND
OBJECTIVE: To provide investment returns that inversely correspond to the
daily performance of the S&P MidCap 400 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should
equal "total soi holdings
exposure" on the diversification s&P MIDCAP
BETA TESTING (MARKET EXPOSURE AS % 400
INDUSTRIES WORKSHEET) OF NET ASSETS) BREAKDOWN
- ------------------------------------------------------------------------------------------------------------
Financials -- 0.0% 19.4%
Consumer Discretionary -- 0.0% 18.5%
Information Technology -- 0.0% 14.1%
Industrials -- 0.0% 12.7%
Health Care -- 0.0% 10.1%
Energy -- 0.0% 8.3%
Utilities -- 0.0% 6.9%
Materials -- 0.0% 4.9%
Consumer Staples -- 0.0% 4.5%
Telecommunication Service -- 0.0% 0.6%
Futures Contracts (Market Value) (2,552,910.00) -43.0% 0.0%
Equity Index Swap Agreements (3,404,748.00) -57.3% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class March 31, 2004
C-Class February 20, 2004
H-Class February 20, 2004
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MEKROS FUND
OBJECTIVE: To provide investment returns that correspond to 150% of the
performance of the Russell 2000 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification S&P MidCap
the Beta testing (Market Exposure as % 400
INDUSTRIES worksheet) of Net Assets) breakdown
- ------------------------------------------------------------------------------------------------------------
Financials 21,509,200.00 14.8% --
Information Technology 15,581,077.00 10.7% --
Consumer Discretionary 14,338,967.00 9.9% 17.5%
Industrials 14,296,513.00 9.8% --
Health Care 13,752,712.00 9.4% 12.2%
Materials 6,954,597.00 4.8% 9.9%
Energy 6,609,588.00 4.5% --
Utilities 3,030,947.00 2.1% 4.3%
Consumer Staples 2,824,707.00 1.9% 1.7%
Telecommunication Service 669,675.00 0.5% --
Financial Services -- -- 23.9%
Technology -- -- 11.9%
Producer Durables -- -- 7.3%
Other Energy -- -- 4.5%
Auto & Transportation -- -- 4.4%
Other -- -- 2.3%
Integrated Oils -- -- 0.1%
Futures Contracts (Market Value) 81,424,060.00 55.9% --
Equity Index Swap Agreements 37,451,627.00 25.7% --
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class March 31, 2004
C-Class January 23, 2001
H-Class November 1, 2000
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
New Century Financial Corp. 0.4%
Trimble Navigation Ltd. 0.4%
Unit Corp. 0.4%
Laidlaw International, Inc. 0.4%
Brocade Communications Systems, Inc. 0.4%
Carpenter Technology Corp. 0.3%
OM Group, Inc. 0.3%
Joy Global, Inc. 0.3%
Provident Bankshares Corp. 0.3%
Millennium Chemicals, Inc. 0.3%
- ------------------------------------------------
Top Ten Total 3.5%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
INVERSE SMALL-CAP FUND
OBJECTIVE: To provide investment results that inversely correspond to the
daily performance of the Russell 2000 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification S&P MidCap
the Beta testing (Market Exposure as % 400
INDUSTRIES worksheet) of Net Assets) breakdown
- ------------------------------------------------------------------------------------------------------------
Financials -- 0.0% --
Information Technology -- 0.0% --
Consumer Discretionary -- 0.0% 17.5%
Industrials -- 0.0% --
Health Care -- 0.0% 12.2%
Materials -- 0.0% 9.9%
Energy -- 0.0% --
Utilities -- 0.0% 4.3%
Consumer Staples -- 0.0% 1.7%
Telecommunication Service -- 0.0% --
Financial Services -- -- 23.9%
Technology -- -- 11.9%
Producer Durables -- -- 7.3%
Other Energy -- -- 4.5%
Auto & Transportation -- -- 4.4%
Other -- -- 2.3%
Integrated Oils -- -- 0.1%
Futures Contracts (Market Value) (16,593,800.00) -47.5% --
Equity Index Swap Agreements (18,384,375.00) -52.6% --
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class March 31, 2004
C-Class February 20, 2004
H-Class February 20, 2004
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
OBJECTIVE: To provide investment results that correspond to 120% of the daily
price movement of the Long Treasury Bond.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal soi holdings
"total exposure" on diversification
the beta testing (market exposure as %
INDUSTRIES worksheet) of net assets)
- --------------------------------------------------------------------------------------------
U.S. Treasury Obligations 135,891,000.00 88.6%
Futures Contracts (Market Value) 50,035,625.00 32.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
Investor Class January 3, 1994
Advisor Class August 1, 2003
A-Class March 31, 2004
C-Class May 2, 2001
The fund invests principally in U.S. Government securities and in leveraged
derivative instruments, such as futures and options contracts.
JUNO FUND
OBJECTIVE: To provide investment returns that inversely correlate to the daily
price movement of the Long Treasury Bond.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification
the Beta testing (Market Exposure as %
INDUSTRIES worksheet) of Net Assets)
- --------------------------------------------------------------------------------------------
U.S. Treasury Obligations (2,009,223,327.00) -68.3%
Futures Contracts (Market Value) (947,086,875.00) -32.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
Investor Class March 3, 1995
Advisor Class August 1, 2003
A-Class March 31, 2004
C-Class March 28, 2001
The fund invests principally in short sales of long-term Treasury Bonds and
derivative instruments, such as futures and option contracts.
See Notes to Financial Statements.
12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
OBJECTIVE: To provide investment returns that correlate to 125% of the daily
performance of the Dow Jones STOXX 50 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should
equal "total soi holdings
exposure" on the diversification dow jones
beta testing (market exposure as % stoxx 50
INDUSTRIES worksheet) of net assets) index
- ------------------------------------------------------------------------------------------------------------
U.S. Treasury Obligations -- 0.0% --
Futures Contracts (Market Value) 42,001,719.00 124.1% --
Financials -- -- 34.3%
Cosumer, Non-cyclical -- -- 21.6%
Energy -- -- 19.3%
Communications -- -- 14.8%
Industrials -- -- 3.1%
Utilities -- -- 2.4%
Basic Materials -- -- 2.3%
Cosumer, Cyclical -- -- 1.2%
Technology -- -- 1.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class March 31, 2004
C-Class May 10, 2001
H-Class May 8, 2000
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
LARGE-CAP JAPAN FUND
OBJECTIVE: To provide investment returns that correlate to 125% of the daily
performance of the Topix 100 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification
the Beta testing (Market Exposure as % Topix
INDUSTRIES worksheet) of Net Assets) 100 Index
- -------------------------------------------------------------------------------------------------------------
Futures Contracts (Market Value) 3,526,250.00 8.6% --
Equity Index Swap Agreements 47,826,248.00 116.7% --
Consumer, Cyclical -- -- 27.9%
Financials -- -- 19.0%
Industrials -- -- 15.0%
Communications -- -- 11.8%
Cosumer, Non-cyclical -- -- 8.4%
Technology -- -- 6.2%
Utilities -- -- 5.7%
Basic Materials -- -- 4.5%
Energy -- -- 0.6%
Other -- -- 0.9%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class March 31, 2004
C-Class March 1, 2002
H-Class May 8, 2000
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
OBJECTIVE: To provide investment results that correspond to the daily
performance of the S&P SmallCap 600/Barra Value Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification (Market
Exposure" on the Beta Exposure as % of Net
INDUSTRIES testing worksheet) Assets)
- --------------------------------------------------------------------------------------------
Industrials 24,641,794.00 20.8%
Financials 24,384,582.00 20.6%
Consumer Discretionary 17,040,069.00 14.4%
Information Technology 14,257,350.00 12.1%
Materials 9,680,394.00 8.2%
Utilities 9,336,409.00 7.9%
Health Care 6,687,930.00 5.7%
Energy 5,488,827.00 4.6%
Consumer Staples 4,498,842.00 3.8%
Telecommunication Services 329,016.00 0.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
MDC Holdings, Inc. 1.0%
Yellow Roadway Corp. 0.9%
Timken Co. 0.9%
South Financial Group, Inc. 0.8%
Steel Dynamics, Inc. 0.8%
UGI Corp. 0.8%
Standard-Pacific Corp. 0.8%
Energen Corp. 0.8%
Hughes Supply, Inc. 0.8%
Shurgard Storage Centers, Inc. -- Class A 0.7%
- ------------------------------------------------
Top Ten Total 8.3%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
MID-CAP VALUE FUND
OBJECTIVE: To provide investment results that correspond to the daily
performance of the S&P MidCap 400/Barra Value Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification (Market
Exposure" on the Beta Exposure as % of Net
INDUSTRIES testing worksheet) Assets)
- --------------------------------------------------------------------------------------------
Financials 12,536,427.00 24.5%
Consumer Discretionary 7,584,117.00 14.8%
Utilities 5,971,262.00 11.7%
Industrials 5,771,190.00 11.3%
Information Technology 4,874,983.00 9.5%
Energy 4,662,861.00 9.1%
Materials 3,344,217.00 6.5%
Consumer Staples 2,806,107.00 5.5%
Health Care 2,211,468.00 4.3%
Telecommunication Services 478,254.00 0.9%
Futures Contracts (Market Value) -- 0.0%
Equity Index Swap Agreements -- 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
DR Horton, Inc. 1.5%
Lennar Corp. - Class A 1.5%
L-3 Communications Holdings, Inc. 1.4%
Weatherford International Ltd. 1.3%
Fidelity National Financial, Inc. 1.3%
Banknorth Group, Inc. 1.2%
Tyson Foods, Inc. -- Class A 1.1%
NewYork Community Bancorp, Inc. 1.1%
Mohawk Industries, Inc. 1.0%
Caesars Entertainment, Inc. 1.0%.
- ------------------------------------------------
Top Ten Total 12.4%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
OBJECTIVE: To provide investment results that correspond to the daily
performance of the S&P 500/Barra Value Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification (Market
Exposure" on the Beta Exposure as % of Net
INDUSTRIES testing worksheet) Assets)
- --------------------------------------------------------------------------------------------
Financials 41,207,152.00 35.5%
Energy 15,006,416.00 12.9%
Consumer Discretionary 14,617,895.00 12.6%
Industrials 10,035,989.00 8.6%
Telecommunication Services 7,468,627.00 6.4%
Information Technology 7,257,511.00 6.2%
Utilities 6,245,145.00 5.4%
Health Care 5,126,984.00 4.4%
Materials 4,009,744.00 3.5%
Consumer Staples 2,904,622.00 2.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
Exxon Mobil Corp. 5.7%
Citigroup, Inc. 4.2%
American International Group, Inc. 3.2%
Bank of America Corp. 3.2%
JPMorgan Chase & Co. 2.6%
ChevronTexaco Corp. 2.1%
Verizon Communications, Inc. 2.0%
Wells Fargo & Co. 1.8%
SBC Communications, Inc. 1.6%
Time Warner, Inc. 1.4%
- ------------------------------------------------
Top Ten Total 27.8%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
SMALL-CAP GROWTH FUND
OBJECTIVE: To provide investment results that correspond to the daily
performance of the S&P SmallCap 600/Barra Growth Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these
amounts should equal SOI Holdings
"Total Exposure" on Diversification (Market
the Beta testing Exposure as % of Net
INDUSTRIES worksheet) Assets)
- --------------------------------------------------------------------------------------------
Health Care 17,750,351.00 19.0%
Consumer Discretionary 17,570,120.00 18.8%
Information Technology 17,305,555.00 18.5%
Industrials 15,941,373.00 17.1%
Financials 9,282,371.00 9.9%
Energy 6,810,385.00 7.3%
Materials 4,012,426.00 4.3%
Consumer Staples 2,561,456.00 2.7%
Telecommunication Services 375,706.00 0.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
NVR, Inc. 1.6%
New Century Financial Corp./Old 1.2%
Polaris Industries, Inc. 1.0%
Cooper Cos., Inc. 1.0%
Medicis Pharmaceutical Corp. -- Class A 1.0%
Massey Energy Co. 1.0%
Fossil, Inc. 1.0%
Roper Industries, Inc. 0.9%
Florida Rock Industries, Inc. 0.9%
Patina Oil & Gas Corp. 0.9%
- ------------------------------------------------
Top Ten Total 10.5%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
OBJECTIVE: To provide investment results that correspond to the daily
performance of the S&P MidCap 400/Barra Growth Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification (Market
Exposure" on the Beta Exposure as % of Net
INDUSTRIES testing worksheet) Assets)
- --------------------------------------------------------------------------------------------
Consumer Discretionary 12,674,511.00 21.9%
Information Technology 10,929,819.00 18.9%
Health Care 9,229,483.00 16.0%
Industrials 7,958,174.00 13.8%
Financials 6,732,587.00 11.6%
Energy 4,145,079.00 7.2%
Consumer Staples 1,903,410.00 3.3%
Materials 1,733,874.00 3.0%
Utilities 960,692.00 1.7%
Telecommunication Services 102,260.00 0.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
Washington Post -- Class B 1.9%
XTO Energy, Inc. 1.7%
Murphy Oil Corp. 1.7%
Harman International Industries, Inc. 1.5%
Smith International, Inc. 1.3%
Microchip Technology, Inc. 1.1%
Expeditors International Washington, Inc. 1.1%
Compass Bancshares, Inc. 1.1%
Legg Mason, Inc. 1.1%
Whole Foods Market, Inc. 1.1%
- ------------------------------------------------
Top Ten Total 13.6%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
LARGE-CAP GROWTH FUND
OBJECTIVE: To provide investment results that correspond to the daily
performance of the S&P 500/Barra Growth Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification (Market
Exposure" on the Beta Exposure as % of Net
INDUSTRIES testing worksheet) Assets)
- --------------------------------------------------------------------------------------------
Information Technology 1,377,593.00 25.6%
Health Care 1,196,442.00 22.3%
Consumer Staples 1,035,608.00 19.3%
Industrials 787,321.00 14.6%
Consumer Discretionary 489,346.00 9.1%
Financials 228,834.00 4.3%
Materials 144,560.00 2.7%
Energy 67,493.00 1.3%
Telecommunication Services 34,551.00 0.6%
Utilities 6,853.00 0.1%
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ------------------------------------------------
General Electric Co. 7.0%
Microsoft Corp. 5.9%
Pfizer, Inc. 4.6%
Wal-Mart Stores, Inc. 4.5%
Johnson & Johnson 3.3%
International Business 2.8%
Machines Corp.
Procter & Gamble Co. 2.7%
Intel Corp. 2.5%
Cisco Systems, Inc. 2.4%
Coca-Cola Co. 1.9%
- ------------------------------------------------
Top Ten Total 37.6%
- ------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: To provide security of principal, high current income and liquidity
by investing in securities issued by the U.S. Government, its agencies or
instrumentalities.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings
should equal "Total Diversification (Market
Exposure" on the Beta Exposure as % of Net
INDUSTRIES testing worksheet) Assets)
- --------------------------------------------------------------------------------------------
Federal Agency Discount Note 1,434,202,307.00 88.5%
Repurchase Agreements 197,032,141.00 12.2%
Federal Agency Bonds 5,000,000.00 0.3%
FADN -- Federal Agency Discount Notes.
INCEPTION DATES:
- ------------------------------------------------
Investor Class December 1, 1993
Advisor Class April 1, 1998
A-Class March 31, 2004
C-Class October 19, 2000
Institutional Class August 1, 2002
The fund invests principally in U.S. Government
securities
See Notes to Financial Statements.
17 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
OTC FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 98.3%
INFORMATION TECHNOLOGY 57.7%
SOFTWARE 18.2%
Microsoft Corp.+ 3,071,430 $ 84,925,039
Oracle Corp.* 2,187,320 24,672,970
Symantec Corp.*+ 252,570 13,861,042
Adobe Systems, Inc.+ 158,040 7,818,239
Veritas Software Corp.* 310,060 5,519,068
Intuit, Inc.*+ 89,450 4,061,030
Check Point Software
Technologies Ltd.*+ 186,850 3,170,844
Electronic Arts, Inc.*+ 63,100 2,901,969
Siebel Systems, Inc.* 371,230 2,799,074
Citrix Systems, Inc.*+ 133,940 2,346,629
BEA Systems, Inc.* 272,450 1,882,629
Synopsys, Inc.*+ 92,050 1,457,152
--------------
TOTAL SOFTWARE 155,415,685
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 13.5%
Intel Corp. 1,904,720 38,208,683
Maxim Integrated Products, Inc.+ 326,370 13,802,187
Applied Materials, Inc.* 559,540 9,226,815
Xilinx, Inc.+ 326,400 8,812,800
KLA-Tencor Corp.*+ 199,040 8,256,179
Altera Corp.*+ 363,850 7,120,545
Linear Technology Corp.+ 191,710 6,947,571
Lam Research Corp.*+ 245,400 5,369,352
Broadcom Corp. -- Class A*+ 191,160 5,216,756
Novellus Systems, Inc.* 176,710 4,698,719
Microchip Technology, Inc.+ 119,650 3,211,406
ATI Technologies, Inc.* 156,940 2,405,890
Intersil Corp. -- Class A+ 76,370 1,216,574
Nvidia Corp.*+ 75,370 1,094,372
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 115,587,849
--------------
COMMUNICATIONS EQUIPMENT 13.1%
Qualcomm, Inc.+ 1,424,740 55,621,849
Cisco Systems, Inc.*+ 1,793,660 32,465,246
Research In Motion Ltd.*+ 141,440 10,797,530
Juniper Networks, Inc.*+ 226,930 5,355,548
JDS Uniphase Corp.*+ 1,355,460 4,567,900
Tellabs, Inc.*+ 166,920 1,533,995
Comverse Technology, Inc.*+ 74,830 1,409,049
--------------
TOTAL COMMUNICATIONS EQUIPMENT 111,751,117
--------------
COMPUTERS & PERIPHERALS 6.5%
Dell, Inc.*+ 501,250 17,844,500
Apple Computer, Inc.*+ 408,840 15,842,550
Sun Microsystems, Inc.* 2,480,020 10,019,281
Network Appliance, Inc.*+ 297,860 6,850,780
Sandisk Corp.*+ 109,220 3,180,486
QLogic Corp.*+ 63,810 1,889,414
--------------
TOTAL COMPUTERS & PERIPHERALS 55,627,011
--------------
INTERNET SOFTWARE & SERVICES 2.6%
Yahoo!, Inc.*+ 503,850 17,085,553
VeriSign, Inc.* 275,920 5,485,290
--------------
TOTAL INTERNET SOFTWARE & SERVICES 22,570,843
--------------
IT CONSULTING & SERVICES 2.1%
Fiserv, Inc.* 313,040 10,912,575
Paychex, Inc.+ 227,360 6,854,904
--------------
TOTAL IT CONSULTING & SERVICES 17,767,479
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.7%
Flextronics International Ltd.*+ 420,640 5,573,480
CDW Corp.+ 69,280 4,020,319
Molex, Inc. 86,560 2,581,219
Sanmina-SCI Corp.* 283,500 1,998,675
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 14,173,693
--------------
TOTAL INFORMATION TECHNOLOGY 492,893,677
--------------
CONSUMER DISCRETIONARY 16.3%
INTERNET & CATALOG RETAIL 6.1%
eBay, Inc.*+ 356,780 32,802,353
InterActiveCorp*+ 507,790 11,181,536
Amazon.com, Inc.*+ 202,910 8,290,903
--------------
TOTAL INTERNET & CATALOG RETAIL 52,274,792
--------------
MEDIA 3.6%
Comcast Corp. -- Class A*+ 617,460 17,437,070
Pixar, Inc.*+ 68,430 5,399,127
EchoStar Communications Corp.*+ 171,630 5,341,126
Lamar Advertising Co.*+ 64,280 2,674,691
--------------
TOTAL MEDIA 30,852,014
--------------
SPECIALTY RETAIL 2.8%
Bed Bath & Beyond, Inc.*+ 307,700 11,418,747
Staples, Inc.+ 230,760 6,881,263
Petsmart, Inc.+ 103,180 2,929,280
Ross Stores, Inc.+ 121,770 2,854,289
--------------
TOTAL SPECIALTY RETAIL 24,083,579
--------------
HOTELS RESTAURANTS & LEISURE 2.1%
Starbucks Corp.*+ 401,930 18,271,738
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 18,271,738
--------------
MULTILINE RETAIL 1.0%
Kmart Holding Corp.*+ 68,210 5,966,329
Dollar Tree Stores, Inc.*+ 77,250 2,081,887
--------------
TOTAL MULTILINE RETAIL 8,048,216
--------------
HOUSEHOLD DURABLES 0.4%
Garmin Ltd.+ 71,660 3,099,295
--------------
TOTAL HOUSEHOLD DURABLES 3,099,295
--------------
See Notes to Financial Statements.
18 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
OTC FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
AUTO COMPONENTS 0.3%
Gentex Corp.+ 70,580 $ 2,479,475
--------------
TOTAL AUTO COMPONENTS 2,479,475
--------------
TOTAL CONSUMER DISCRETIONARY 139,109,109
--------------
HEALTH CARE 14.1%
BIOTECHNOLOGY 9.9%
Amgen, Inc.*+ 375,300 21,272,004
Biogen Idec, Inc.*+ 262,160 16,036,327
Genzyme Corp.*+ 222,860 12,125,813
Chiron Corp.*+ 225,380 9,961,796
Gilead Sciences, Inc.*+ 231,870 8,667,301
Cephalon, Inc.*+ 150,690 7,218,051
Millennium Pharmaceuticals, Inc.*+ 384,950 5,277,664
Invitrogen Corp.*+ 43,450 2,389,315
Medimmune, Inc.*+ 70,620 1,673,694
--------------
TOTAL BIOTECHNOLOGY 84,621,965
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.8%
Biomet, Inc.+ 240,280 11,264,327
DENTSPLY International, Inc.+ 85,860 4,459,568
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 15,723,895
--------------
HEALTH CARE PROVIDERS & SERVICES 1.4%
Express Scripts, Inc.*+ 63,250 4,132,755
Patterson Cos., Inc.*+ 51,090 3,911,450
Henry Schein, Inc.*+ 25,160 1,567,720
First Health Group Corp.* 68,230 1,097,821
Lincare Holdings, Inc.*+ 26,010 772,757
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 11,482,503
--------------
PHARMACEUTICALS 1.0%
Teva Pharmaceutical Industries Ltd. -- SP
ADR+ 339,500 8,810,025
--------------
TOTAL PHARMACEUTICALS 8,810,025
--------------
TOTAL HEALTH CARE 120,638,388
--------------
INDUSTRIALS 4.9%
COMMERCIAL SERVICES & SUPPLIES 2.1%
Apollo Group, Inc. -- Class A*+ 134,220 9,847,721
Cintas Corp.+ 143,030 6,012,981
Career Education Corp.*+ 82,920 2,357,416
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 18,218,118
--------------
MACHINERY 1.2%
Paccar, Inc.+ 146,430 10,121,242
--------------
TOTAL MACHINERY 10,121,242
--------------
AIR FREIGHT & COURIERS 0.8%
Expeditors International
Washington, Inc.+ 73,670 3,808,739
C.H. Robinson Worldwide, Inc.+ 73,270 3,398,995
--------------
TOTAL AIR FREIGHT & COURIERS 7,207,734
--------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
Fastenal Co.+ 54,690 3,150,144
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 3,150,144
--------------
ELECTRICAL EQUIPMENT 0.3%
American Power Conversion Corp.+ 122,860 2,136,535
--------------
TOTAL ELECTRICAL EQUIPMENT 2,136,535
--------------
AIRLINES 0.1%
Ryanair Holdings PLC -- SP ADR*+ 37,840 1,104,928
--------------
TOTAL AIRLINES 1,104,928
--------------
TOTAL INDUSTRIALS 41,938,701
--------------
TELECOMMUNICATION SERVICES 2.9%
WIRELESS TELECOMMUNICATION SERVICES 2.8%
Nextel Communications, Inc. --
Class A* 997,480 23,779,923
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 23,779,923
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.1%
Level 3 Communications, Inc.*+ 451,730 1,169,981
--------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 1,169,981
--------------
TOTAL TELECOMMUNICATION SERVICES 24,949,904
--------------
CONSUMER STAPLES 1.3%
FOOD & DRUG RETAILING 1.3%
Costco Wholesale Corp.+ 167,280 6,952,156
Whole Foods Market, Inc.+ 46,720 4,008,109
--------------
TOTAL FOOD & DRUG RETAILING 10,960,265
--------------
TOTAL CONSUMER STAPLES 10,960,265
MATERIALS 0.8%
CHEMICALS 0.4%
Sigma-Aldrich Corp.+ 55,620 3,225,960
--------------
TOTAL CHEMICALS 3,225,960
--------------
CONTAINERS & PACKAGING 0.4%
Smurfit-Stone Container Corp.*+ 159,200 3,083,704
--------------
TOTAL CONTAINERS & PACKAGING 3,083,704
--------------
TOTAL MATERIALS 6,309,664
--------------
ENERGY 0.3%
ENERGY EQUIPMENT & SERVICES 0.3%
Patterson-UTI Energy, Inc.+ 142,840 2,723,959
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,723,959
--------------
TOTAL ENERGY 2,723,959
--------------
TOTAL COMMON STOCKS
(Cost $512,955,370) 839,523,667
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
OTC FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 1.2%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 57,599 $ 57,599
1.71% due 10/01/04 4,812,710 4,812,710
1.70% due 10/01/04 4,812,710 4,812,710
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $9,683,019) 9,683,019
--------------
SECURITIES LENDING COLLATERAL 38.1%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 325,347,018 325,347,018
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $325,347,018) 325,347,018
--------------
TOTAL INVESTMENTS 137.6%
(Cost $847,985,407) $1,174,553,704
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (37.6)% $ (320,686,022)
==============
NET ASSETS - 100.0% $ 853,867,682
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
----------- --------------
FUTURES CONTRACTS PURCHASED
December 2004 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $14,301,600) 505 $ 181,021
==============
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 -
SEE NOTE 9.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 64.0%
FINANCIALS 12.0%
BANKS 3.5%
Commerce Bancorp, Inc./NJ+ 5,200 $ 287,040
Banknorth Group, Inc. 8,090 283,150
Mercantile Bankshares Corp. 5,510 264,260
Greater Bay Bancorp+ 6,700 192,625
Silicon Valley Bancshares* 5,100 189,567
Hibernia Corp. -- Class A 6,700 176,947
Wilmington Trust Corp. 2,270 82,197
City National Corp. 1,080 70,146
Compass Bancshares, Inc. 510 22,348
Colonial BancGroup, Inc. 960 19,632
Bank of Hawaii Corp. 350 16,537
Associated Banc-Corp 350 11,225
--------------
TOTAL BANKS 1,615,674
--------------
INSURANCE 2.9%
Everest Re Group Ltd. 3,790 281,711
W.R. Berkley Corp. 6,230 262,657
American Financial Group, Inc./OH+ 6,610 197,573
Allmerica Financial Corp.* 6,750 181,440
Horace Mann Educators Corp. 10,010 175,976
Fidelity National Financial, Inc. 2,820 107,442
Arthur J. Gallagher & Co.+ 2,760 91,439
Unitrin, Inc. 1,650 68,590
HCC Insurance Holdings, Inc.+ 130 3,919
--------------
TOTAL INSURANCE 1,370,747
--------------
THRIFTS & MORTGAGE FINANCE 1.8%
Independence Community
Bank Corp. 6,250 244,062
Astoria Financial Corp. 6,500 230,685
Webster Financial Corp. 4,580 226,206
New York Community Bancorp, Inc.+ 2,920 59,977
PMI Group, Inc.+ 1,220 49,508
Radian Group, Inc.+ 440 20,341
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 830,779
--------------
REAL ESTATE 1.6%
Hospitality Properties Trust 5,530 234,970
Rayonier, Inc. 4,690 212,176
Liberty Property Trust+ 3,500 139,440
Developers Diversified Realty Corp. 3,150 123,322
Mack-Cali Realty Corp. 1,150 50,945
New Plan Excel Realty Trust 80 2,000
--------------
TOTAL REAL ESTATE 762,853
--------------
CAPITAL MARKETS 1.4%
Investors Financial Services Corp.+ 5,260 237,384
Eaton Vance Corp.+ 5,690 229,819
A.G. Edwards, Inc.+ 3,540 122,555
SEI Investments Co. 1,790 60,287
Legg Mason, Inc.+ 220 11,719
--------------
TOTAL CAPITAL MARKETS 661,764
--------------
DIVERSIFIED FINANCIALS 0.5%
Leucadia National Corp. 3,930 222,635
--------------
TOTAL DIVERSIFIED FINANCIALS 222,635
--------------
CONSUMER FINANCE 0.3%
AmeriCredit Corp.* 5,910 123,401
MoneyGram International, Inc. 1,070 18,275
--------------
TOTAL CONSUMER FINANCE 141,676
--------------
TOTAL FINANCIALS 5,606,128
--------------
CONSUMER DISCRETIONARY 11.8%
SPECIALTY RETAIL 3.7%
Petsmart, Inc.+ 9,310 264,311
Ross Stores, Inc. 10,940 256,434
Williams-Sonoma, Inc.*+ 4,490 168,599
AnnTaylor Stores Corp.* 6,690 156,546
Chico's FAS, Inc.*+ 4,050 138,510
Payless Shoesource, Inc.*+ 12,310 124,700
Michaels Stores, Inc. 2,000 118,420
Urban Outfitters, Inc.*+ 2,470 84,968
Pacific Sunwear of California, Inc.* 3,910 82,306
O'Reilly Automotive, Inc.* 1,990 76,197
Regis Corp. 1,650 66,363
CarMax, Inc.* 2,760 59,478
American Eagle Outfitters, Inc.+ 1,600 58,960
Rent-A-Center, Inc.* 2,220 57,409
--------------
TOTAL SPECIALTY RETAIL 1,713,201
--------------
HOUSEHOLD DURABLES 2.7%
Harman International
Industries, Inc.+ 2,780 299,545
American Greetings Corp. --
Class A*+ 8,020 201,462
Blyth, Inc. 6,050 186,945
Lennar Corp. -- Class A+ 3,030 144,228
Mohawk Industries, Inc.* 1,600 127,024
Furniture Brands International, Inc.+ 4,950 124,146
D.R. Horton, Inc. 2,480 82,113
Hovnanian Enterprises, Inc. --
Class A*+ 1,920 76,992
Tupperware Corp. 410 6,962
--------------
TOTAL HOUSEHOLD DURABLES 1,249,417
--------------
See Notes to Financial Statements.
THE RYDEX Series FUNDS SEMI-ANNUAL REPORT | 21
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
HOTELS RESTAURANTS & LEISURE 2.2%
Mandalay Resort Group 3,260 $ 223,799
Brinker International, Inc.*+ 6,640 206,836
GTECH Holdings Corp. 6,440 163,061
Ruby Tuesday, Inc.+ 4,270 119,005
Outback Steakhouse, Inc. 2,820 117,114
Boyd Gaming Corp. 2,000 56,300
Bob Evans Farms, Inc. 2,050 55,678
Cheesecake Factory, Inc.*+ 990 42,966
Krispy Kreme Doughnuts, Inc.*+ 1,970 24,940
Six Flags, Inc.* 3,020 16,429
Caesars Entertainment, Inc.* 740 12,358
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,038,486
--------------
MEDIA 1.8%
Belo Corp. -- Class A 9,610 216,609
Washington Post Co. -- Class B 220 202,400
Reader's Digest Association, Inc. 13,290 193,901
Harte-Hanks, Inc. 4,570 114,296
Entercom Communications Corp.* 1,710 55,849
Scholastic Corp.* 1,420 43,864
Westwood One, Inc.* 530 10,478
--------------
TOTAL MEDIA 837,397
--------------
AUTO COMPONENTS 0.7%
Lear Corp.+ 3,390 184,585
BorgWarner, Inc. 3,040 131,602
Bandag, Inc. 270 11,826
Gentex Corp. 270 9,485
--------------
TOTAL AUTO COMPONENTS 337,498
--------------
MULTILINE RETAIL 0.3%
Saks, Inc.* 6,830 82,301
Dollar Tree Stores, Inc.*+ 2,970 80,042
--------------
TOTAL MULTILINE RETAIL 162,343
--------------
AUTOMOBILES 0.2%
Thor Industries, Inc. 3,930 104,027
--------------
TOTAL AUTOMOBILES 104,027
--------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Callaway Golf Co. 8,710 92,065
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 92,065
--------------
TOTAL CONSUMER DISCRETIONARY 5,534,434
--------------
INFORMATION TECHNOLOGY 9.2%
SOFTWARE 2.5%
Cadence Design Systems, Inc.*+ 20,460 266,799
McAfee, Inc.*+ 10,680 214,668
Fair Isaac Corp. 6,350 185,420
RSA Security, Inc.* 7,930 153,049
Sybase, Inc.* 6,570 90,600
Macrovision Corp.*+ 3,290 79,223
Wind River Systems, Inc.* 5,520 67,344
Macromedia, Inc.* 3,090 62,047
Transaction Systems Architects, Inc. --
Class A* 2,080 38,657
--------------
TOTAL SOFTWARE 1,157,807
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.0%
Semtech Corp.*+ 10,640 203,969
Silicon Laboratories, Inc.*+ 5,820 192,584
Micrel, Inc.* 15,820 164,686
Microchip Technology, Inc.+ 4,650 124,806
Lam Research Corp.* 5,310 116,183
Cypress Semiconductor Corp.*+ 9,830 86,897
Triquint Semiconductor, Inc.* 13,530 52,767
RF Micro Devices, Inc.* 100 634
--------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 942,526
--------------
COMMUNICATIONS EQUIPMENT 1.6%
Harris Corp.+ 3,210 176,357
Polycom, Inc.* 7,830 155,191
Plantronics, Inc. 2,920 126,261
Utstarcom, Inc.*+ 6,650 107,131
ADTRAN, Inc.+ 4,400 99,792
CommScope, Inc.*+ 3,980 85,968
--------------
TOTAL COMMUNICATIONS EQUIPMENT 750,700
--------------
IT CONSULTING & SERVICES 1.1%
Alliance Data Systems Corp.* 5,730 232,409
CheckFree Corp.*+ 4,310 119,258
Acxiom Corp. 2,930 69,558
DST Systems, Inc.*+ 1,260 56,032
CSG Systems International, Inc.* 3,120 48,079
--------------
TOTAL IT CONSULTING & SERVICES 525,336
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.0%
CDW Corp.+ 3,050 176,991
Vishay Intertechnology, Inc.*+ 8,550 110,295
National Instruments Corp.+ 3,310 100,194
Newport Corp.* 4,780 54,827
Amphenol Corp. -- Class A* 270 9,250
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 451,557
--------------
COMPUTERS & PERIPHERALS 0.7%
Storage Technology Corp.*+ 9,340 235,928
Sandisk Corp.*+ 2,440 71,053
Quantum Corp.* 6,520 15,061
--------------
TOTAL COMPUTERS & PERIPHERALS 322,042
--------------
OFFICE ELECTRONICS 0.3%
Zebra Technologies Corp. -- Class A*+ 2,150 131,172
--------------
TOTAL OFFICE ELECTRONICS 131,172
--------------
See Notes to Financial Statements.
22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
TOTAL INFORMATION TECHNOLOGY $ 4,281,140
--------------
INDUSTRIALS 7.9%
COMMERCIAL SERVICES & SUPPLIES 2.9%
Herman Miller, Inc. 8,070 198,925
Education Management Corp.* 7,090 188,878
Sotheby's Holdings, Inc. -- Class A* 9,530 149,812
Republic Services, Inc. 4,690 139,574
Laureate Education, Inc.*+ 3,340 124,315
Career Education Corp.*+ 4,310 122,533
Brink's Co. 3,720 112,232
ChoicePoint, Inc.* 2,330 99,374
Copart, Inc.* 3,690 69,852
Stericycle, Inc.*+ 940 43,146
Adesa, Inc.* 2,440 40,089
Korn/Ferry International, Inc.* 1,830 33,361
Corinthian Colleges, Inc.*+ 1,220 16,446
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,338,537
--------------
MACHINERY 1.8%
AGCO Corp.* 10,050 227,331
Kennametal, Inc. 4,710 212,656
Pentair, Inc.+ 5,250 183,278
Harsco Corp. 3,300 148,170
Nordson Corp. 2,330 79,989
--------------
TOTAL MACHINERY 851,424
--------------
AEROSPACE & DEFENSE 0.8%
L-3 Communications Holdings, Inc. 2,750 184,250
Precision Castparts Corp. 1,540 92,477
Sequa Corp. -- Class A* 1,650 86,147
--------------
TOTAL AEROSPACE & DEFENSE 362,874
--------------
ROAD & RAIL 0.8%
Werner Enterprises, Inc.+ 10,730 207,196
Swift Transportation Co., Inc.*+ 8,930 150,203
--------------
TOTAL ROAD & RAIL 357,399
--------------
AIR FREIGHT & COURIERS 0.6%
J.B.Hunt Transport Services, Inc.+ 5,400 200,556
CNF, Inc. 1,830 75,012
Expeditors International
Washington, Inc. 300 15,510
--------------
TOTAL AIR FREIGHT & COURIERS 291,078
--------------
ELECTRICAL EQUIPMENT 0.5%
Thomas & Betts Corp. 6,970 186,936
AMETEK, Inc. 1,070 32,442
--------------
TOTAL ELECTRICAL EQUIPMENT 219,378
--------------
CONSTRUCTION & ENGINEERING 0.4%
Dycom Industries, Inc.* 6,980 198,162
--------------
TOTAL CONSTRUCTION & ENGINEERING 198,162
--------------
INDUSTRIAL CONGLOMERATES 0.1%
Carlisle Cos., Inc. 660 42,194
--------------
TOTAL INDUSTRIAL CONGLOMERATES 42,194
--------------
AIRLINES 0.0%
JetBlue Airways Corp.*+ 1,350 28,242
--------------
TOTAL AIRLINES 28,242
--------------
MARINE 0.0%
Alexander & Baldwin, Inc. 560 19,006
--------------
TOTAL MARINE 19,006
--------------
TRADING COMPANIES & DISTRIBUTORS 0.0%
Fastenal Co.+ 130 7,488
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 7,488
--------------
TOTAL INDUSTRIALS 3,715,782
--------------
HEALTH CARE 6.6%
HEALTH CARE PROVIDERS & SERVICES 2.4%
Patterson Cos., Inc.* 3,080 235,805
Henry Schein, Inc.* 2,550 158,890
Community Health Systems, Inc.* 5,790 154,477
Coventry Health Care, Inc.* 2,350 125,419
LifePoint Hospitals, Inc.*+ 3,730 111,937
Lincare Holdings, Inc.*+ 2,760 82,000
Renal Care Group, Inc.* 2,360 76,063
Covance, Inc.* 1,650 65,951
Universal Health Services, Inc. --
Class B 1,270 55,245
First Health Group Corp.* 2,200 35,398
Apria Healthcare Group, Inc.* 1,270 34,608
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,135,793
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.0%
DENTSPLY International, Inc. 5,310 275,802
Varian Medical Systems, Inc.* 6,590 227,816
Visx, Inc.*+ 8,530 175,718
Edwards Lifesciences Corp.* 3,780 126,630
Varian, Inc.* 1,520 57,562
Cytyc Corp.* 1,800 43,470
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 906,998
--------------
BIOTECHNOLOGY 1.4%
Millennium Pharmaceuticals, Inc.*+ 21,840 299,426
Charles River Laboratories
International, Inc.* 4,780 218,924
Invitrogen Corp.* 1,620 89,084
Cephalon, Inc.*+ 1,200 57,480
Vertex Pharmaceuticals, Inc.* 450 4,725
--------------
TOTAL BIOTECHNOLOGY 669,639
--------------
PHARMACEUTICALS 0.8%
Perrigo Co. 9,650 198,307
Par Pharmaceutical Cos., Inc.*+ 2,180 78,327
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Sepracor, Inc.*+ 1,570 $ 76,585
IVAX Corp.* 210 4,022
--------------
TOTAL PHARMACEUTICALS 357,241
--------------
TOTAL HEALTH CARE 3,069,671
--------------
ENERGY 5.4%
OIL & GAS 4.4%
XTO Energy, Inc. 9,410 305,637
Pioneer Natural Resources Co.+ 7,500 258,600
Pogo Producing Co. 5,340 253,383
Newfield Exploration Co.* 4,130 252,921
Noble Energy, Inc. 4,180 243,443
Forest Oil Corp.* 7,250 218,370
Murphy Oil Corp. 2,060 178,746
Plains Exploration & Production Co.* 6,260 149,364
Overseas Shipholding Group, Inc.+ 2,950 146,438
Western Gas Resources, Inc. 1,320 37,739
--------------
TOTAL OIL & GAS 2,044,641
--------------
ENERGY EQUIPMENT & SERVICES 1.0%
Weatherford International Ltd.* 3,300 168,366
Smith International, Inc.*+ 1,750 106,277
Helmerich & Payne, Inc. 3,490 100,128
Grant Prideco, Inc.*+ 3,290 67,412
ENSCO International, Inc. 510 16,662
National-Oilwell, Inc.* 420 13,801
Patterson-UTI Energy, Inc. 340 6,484
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 479,130
--------------
TOTAL ENERGY 2,523,771
--------------
UTILITIES 4.5%
MULTI-UTILITIES 2.6%
Energy East Corp. 10,510 264,642
Equitable Resources, Inc.+ 4,750 257,972
National Fuel Gas Co. 8,030 227,490
SCANA Corp.+ 4,620 172,511
MDU Resources Group, Inc. 4,030 106,110
Sierra Pacific Resources Corp.*+ 7,750 69,362
Vectren Corp. 2,260 56,907
Questar Corp. 980 44,904
--------------
TOTAL MULTI-UTILITIES 1,199,898
--------------
ELECTRIC UTILITIES 1.9%
Pepco Holdings, Inc.+ 13,480 268,252
Northeast Utilities 11,740 227,639
OGE Energy Corp. 8,380 211,427
Idacorp, Inc. 6,230 181,044
--------------
TOTAL ELECTRIC UTILITIES 888,362
--------------
TOTAL UTILITIES 2,088,260
--------------
MATERIALS 3.2%
CHEMICALS 1.6%
Valspar Corp. 4,540 211,927
Scotts Co. -- Class A* 3,290 211,054
Airgas, Inc. 4,670 112,407
IMC Global, Inc.*+ 4,460 77,559
Lyondell Chemical Co.+ 2,430 54,578
RPM International, Inc. 2,260 39,889
FMC Corp.* 530 25,742
Minerals Technologies, Inc. 350 20,601
--------------
TOTAL CHEMICALS 753,757
--------------
PAPER & FOREST PRODUCTS 0.9%
Bowater, Inc.+ 5,840 223,029
Potlatch Corp.+ 4,180 195,666
--------------
TOTAL PAPER & FOREST PRODUCTS 418,695
--------------
CONTAINERS & PACKAGING 0.4%
Longview Fibre Co. 10,800 164,700
--------------
TOTAL CONTAINERS & PACKAGING 164,700
--------------
METALS & MINING 0.3%
Peabody Energy Corp. 2,340 139,230
--------------
TOTAL METALS & MINING 139,230
--------------
TOTAL MATERIALS 1,476,382
--------------
CONSUMER STAPLES 3.0%
FOOD PRODUCTS 1.7%
Tyson Foods, Inc. -- Class A+ 16,320 261,446
Hormel Foods Corp.+ 9,230 247,179
Smithfield Foods, Inc.* 9,210 230,250
Dean Foods Co.*+ 1,130 33,923
--------------
TOTAL FOOD PRODUCTS 772,798
--------------
FOOD & DRUG RETAILING 0.5%
Whole Foods Market, Inc.+ 1,560 133,832
Ruddick Corp. 5,300 104,092
BJ's Wholesale Club, Inc.*+ 320 8,749
--------------
TOTAL FOOD & DRUG RETAILING 246,673
--------------
BEVERAGES 0.4%
PepsiAmericas, Inc. 10,010 191,191
--------------
TOTAL BEVERAGES 191,191
--------------
HOUSEHOLD PRODUCTS 0.4%
Energizer Holdings, Inc.*+ 3,980 183,478
Church & Dwight Co., Inc. 65 1,824
--------------
TOTAL HOUSEHOLD PRODUCTS 185,302
--------------
TOTAL CONSUMER STAPLES 1,395,964
--------------
TELECOMMUNICATION SERVICES 0.4%
WIRELESS TELECOMMUNICATION SERVICES 0.4%
Telephone & Data Systems, Inc. 2,170 182,649
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 182,649
--------------
TOTAL TELECOMMUNICATION SERVICES 182,649
--------------
TOTAL COMMON STOCKS
(Cost $27,127,810) 29,874,181
--------------
See Notes to Financial Statements.
24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 14.1%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 39,166 $ 39,166
1.71% due 10/01/04 3,272,508 3,272,508
1.70% due 10/01/04 3,272,508 3,272,508
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,584,182) 6,584,182
--------------
SECURITIES LENDING COLLATERAL 8.9%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 4,176,485 4,176,485
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,176,485) 4,176,485
--------------
TOTAL INVESTMENTS 87.0%
(Cost $37,888,477) $ 40,634,848
==============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 13.0% $ 6,075,558
==============
NET ASSETS - 100.0% $ 46,710,406
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
----------- --------------
FUTURES CONTRACTS PURCHASED
December 2004 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $26,538,390) 447 $ 143,831
==============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
November 2004 S&P 400 MidCap Index
Swap, Maturing 11/22/04**
(Notional Market Value
$13,293,524) 22,410 $ 58,945
==============
* NON-INCOME PRODUCING SECURITIES.
** PRICE RETURN BASED ON S&P MIDCAP 400 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 -
SEE NOTE 9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 71.6%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 25,290 $ 25,290
1.71% due 10/01/04 2,113,182 2,113,182
1.70% due 10/01/04 2,113,182 2,113,182
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,251,654) 4,251,654
--------------
TOTAL INVESTMENTS 71.6%
(Cost $4,251,654) $ 4,251,654
==============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 28.4% $ 1,687,340
==============
NET ASSETS - 100.0% $ 5,938,994
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
----------- --------------
FUTURES CONTRACTS SOLD SHORT
December 2004 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of Contracts
$2,552,910) 43 $ (23,500)
==============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
November 2004 S&P 400 MidCap
Index Swap, Maturing 11/22/04*
(Notional Market Value
$3,404,748) 5,740 $ (18,490)
==============
* PRICE RETURN BASED ON S&P MIDCAP 400 INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 68.4%
FINANCIALS 14.8%
BANKS 5.7%
Provident Bankshares Corp. 14,094 $ 472,854
Southwest Bancorp of Texas, Inc. 23,076 464,751
Susquehanna Bancshares, Inc. 17,272 424,891
Pacific Capital Bancorp 13,990 413,824
International Bancshares Corp. 10,704 393,372
Chittenden Corp. 14,251 388,346
First Republic Bank+ 7,817 359,582
TrustCo Bank Corp./NY 27,176 348,396
City Holding Co. 10,345 340,247
Irwin Financial Corp. 13,068 337,416
Independent Bank Corp./MI 12,403 334,881
Hanmi Financial Corp. 9,843 297,259
Trustmark Corp. 8,646 268,718
Wintrust Financial Corp. 4,427 253,578
Community Bank System, Inc. 9,559 240,218
FNB Corp. 10,199 225,704
UMB Financial Corp. 4,237 201,978
First Bancorp Puerto Rico 4,120 198,996
Umpqua Holding Corp. 8,211 185,240
Westamerica Bancorporation 3,250 178,392
Park National Corp. 1,400 178,122
Old National Bancorp/IN 6,836 169,806
First Midwest Bancorp, Inc./IL 4,800 165,888
Greater Bay Bancorp+ 5,757 165,514
East-West Bancorp, Inc. 4,646 156,059
BancorpSouth, Inc. 6,768 155,596
United Bankshares, Inc. 4,446 154,054
PrivateBancorp, Inc. 5,620 151,515
Oriental Financial Group+ 5,320 143,959
First National Bankshares of
Florida, Inc. 4,280 105,074
Citizens Banking Corp./MI 3,097 100,869
MB Financial Corp. 1,870 74,127
Signature Bank/New York NY* 2,752 73,616
Boston Private Financial
Holdings, Inc. 2,560 63,898
Texas Capital Bancshares, Inc.* 2,606 47,299
Univest Corporation of Pennsylvania 1,129 46,007
--------------
TOTAL BANKS 8,280,046
--------------
REAL ESTATE 4.2%
MFA Mortgage Investments, Inc. 50,587 465,906
Nationwide Health Properties, Inc. 20,003 415,062
Brandywine Realty Trust+ 13,798 392,967
Equity One, Inc. 18,932 371,446
Commercial Net Lease Realty 20,184 367,752
LaSalle Hotel Properties 12,731 351,376
Colonial Properties Trust 8,603 346,013
Maguire Properties, Inc. 13,896 337,812
US Restaurant Properties, Inc. 19,425 328,088
Anworth Mortgage Asset Corp. 27,270 310,333
Bedford Property Investors, Inc. 10,160 308,254
Lexington Corporate Properties
Trust 13,222 287,050
Senior Housing Properties Trust 15,922 283,730
Capstead Mortgage Corp.+ 20,904 260,255
Home Properties, Inc. 6,207 245,549
National Health Investors, Inc. 6,028 171,436
Healthcare Realty Trust, Inc. 4,360 170,214
Impac Mortgage Holdings, Inc. 6,386 167,952
American Financial Realty Trust+ 11,110 156,762
Newcastle Investment Corp. 4,140 127,098
LNR Property Corp.+ 2,036 126,049
Luminent Mortgage Capital, Inc. 3,722 47,195
Highland Hospitality Corp. 4,050 46,170
Arbor Realty Trust, Inc. 1,600 35,520
Capital Lease Funding, Inc. 2,820 31,133
--------------
TOTAL REAL ESTATE 6,151,122
--------------
INSURANCE 2.0%
Hilb Rogal & Hobbs Co.+ 10,607 384,186
ProAssurance Corp.* 10,450 365,959
Horace Mann Educators Corp. 19,753 347,258
Philadelphia Consolidated
Holding Co.* 6,279 346,098
21st Century Insurance Group 23,308 311,162
Zenith National Insurance Corp. 7,010 296,593
American Equity Investment Life
Holding Co.* 30,268 287,243
Infinity Property & Casualty Corp. 7,099 209,633
Vesta Insurance Group, Inc. 46,374 208,219
UICI 4,390 143,729
First Acceptance Corp.* 4,710 33,676
FPIC Insurance Group, Inc.*+ 1,028 26,574
--------------
TOTAL INSURANCE 2,960,330
--------------
THRIFTS & MORTGAGE FINANCE 1.8%
New Century Financial Corp. 8,812 530,659
MAF Bancorp, Inc. 8,599 370,875
Brookline Bancorp, Inc. 23,575 369,420
Flagstar Bancorp, Inc. 17,031 362,420
Provident Financial Services, Inc. 20,977 361,853
Corus Bankshares, Inc. 4,245 183,087
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Sterling Financial Corp./WA* 4,006 $ 141,171
Ocwen Financial Corp.*+ 13,313 121,814
Commercial Capital Bancorp, Inc. 3,929 89,149
Commercial Federal Corp.+ 2,370 63,943
Franklin Bank Corp./Houston TX* 2,180 37,169
Clifton Savings Bancorp, Inc. 3,140 36,612
KNBT Bancorp, Inc. 188 3,166
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,671,338
--------------
CAPITAL MARKETS 0.6%
Knight Trading Group, Inc.* 40,979 378,236
Piper Jaffray Cos., Inc.* 8,236 326,063
LaBranche & Co., Inc.* 6,533 55,204
Capital Southwest Corp. 390 29,640
--------------
TOTAL CAPITAL MARKETS 789,143
--------------
CONSUMER FINANCE 0.3%
World Acceptance Corp.* 16,613 386,252
Education Lending Group, Inc.*+ 2,938 43,424
--------------
TOTAL CONSUMER FINANCE 429,676
--------------
DIVERSIFIED FINANCIALS 0.2%
eSpeed, Inc. -- Class A* 23,148 227,545
--------------
TOTAL DIVERSIFIED FINANCIALS 227,545
--------------
TOTAL FINANCIALS 21,509,200
--------------
INFORMATION TECHNOLOGY 10.7%
SOFTWARE 2.3%
Parametric Technology Corp.* 87,731 463,220
Internet Security Systems, Inc.*+ 23,538 400,146
Borland Software Corp.* 44,406 370,790
Micros Systems, Inc.* 7,349 367,965
MicroStrategy, Inc. -- Class A* 8,103 332,952
Filenet Corp.* 16,081 280,774
Opsware, Inc.*+ 44,585 250,122
Quest Software, Inc.* 20,426 227,137
Hyperion Solutions Corp.*+ 4,727 160,671
Ansys, Inc.* 2,670 132,779
Macrovision Corp.*+ 4,649 111,948
Altiris, Inc.* 3,097 98,020
THQ, Inc.* 3,903 75,952
Sonic Solutions, Inc.* 1,801 29,392
Lawson Software, Inc.* 761 4,262
--------------
TOTAL SOFTWARE 3,306,130
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.0%
Trimble Navigation Ltd.*+ 16,781 530,279
Paxar Corp.* 19,966 452,829
Agilsys, Inc. 23,290 402,684
Technitrol, Inc.* 17,722 345,579
Cognex Corp. 11,965 313,483
Taser International, Inc.*+ 8,263 310,276
Coherent, Inc.* 5,010 129,959
Littelfuse, Inc.* 3,337 115,227
Global Imaging Systems, Inc.* 3,265 101,476
Veeco Instruments, Inc.* 3,771 79,078
Lexar Media, Inc.* 6,458 54,183
TTM Technologies, Inc.* 3,794 33,729
Digital Theater Systems, Inc.* 1,750 31,937
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,900,719
--------------
COMPUTERS & PERIPHERALS 1.4%
Brocade Communications
Systems, Inc.*+ 91,004 514,173
Hutchinson Technology, Inc.*+ 15,061 402,581
Imation Corp. 10,173 362,057
Electronics for Imaging, Inc.*+ 15,614 253,571
PalmOne, Inc.*+ 4,682 142,520
Quantum Corp.*+ 40,947 94,588
Adaptec, Inc.* 11,775 89,490
Emulex Corp.* 7,641 88,024
Pinnacle Systems, Inc.* 6,856 28,589
Silicon Graphics, Inc.*+ 14,635 20,928
Overland Storage, Inc.* 1,279 17,893
--------------
TOTAL COMPUTERS & PERIPHERALS 2,014,414
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.3%
Photronics, Inc.*+ 19,525 324,505
Power Integrations, Inc.*+ 14,887 304,141
DSP Group, Inc.* 13,940 293,437
Kulicke & Soffa Industries, Inc.* 35,190 198,824
Sigmatel, Inc.* 8,231 174,580
Mindspeed Technologies, Inc.*+ 83,725 167,450
RF Micro Devices, Inc.* 16,745 106,163
Integrated Device Technology, Inc.*+ 10,746 102,409
OmniVision Technologies, Inc.*+ 5,458 77,231
Credence Systems Corp.*+ 9,848 70,906
Lattice Semiconductor Corp.* 8,065 39,599
Pixelworks, Inc.* 3,006 30,090
Dupont Photomasks, Inc.* 1,448 24,674
Atheros Communications, Inc.* 2,195 22,389
Tessera Technologies, Inc.* 1,011 22,343
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 1,958,741
--------------
IT CONSULTING & SERVICES 1.3%
SRA International, Inc. -- Class A* 6,900 355,764
iPayment Holdings, Inc.* 8,495 341,159
Perot Systems Corp. -- Class A* 11,531 185,188
MAXIMUS, Inc.* 6,317 181,993
BISYS Group, Inc.* 12,180 177,950
See Notes to Financial Statements.
28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Euronet Worldwide, Inc.* 8,104 $ 151,707
eFunds Corp.* 8,086 150,319
Sapient Corp.* 19,269 147,022
Titan Corp.* 7,006 97,874
Gartner, Inc. -- Class A* 5,820 68,036
Keane, Inc.*+ 4,390 67,430
--------------
TOTAL IT CONSULTING & SERVICES 1,924,442
--------------
INTERNET SOFTWARE & SERVICES 1.3%
EarthLink, Inc.*+ 43,467 447,710
Digital River, Inc.* 12,105 360,487
aQuantive, Inc.* 35,871 346,155
ValueClick, Inc.* 31,096 293,546
Ariba, Inc.* 22,503 210,178
Equinix, Inc.* 2,591 79,725
HomeStore, Inc.* 30,289 69,968
Digital Insight Corp.*+ 2,965 40,413
--------------
TOTAL INTERNET SOFTWARE & SERVICES 1,848,182
--------------
COMMUNICATIONS EQUIPMENT 1.1%
F5 Networks, Inc.*+ 14,553 443,284
Ditech Communications Corp.* 15,360 343,911
Inter-Tel, Inc.+ 14,537 314,290
Aspect Communications Corp.* 15,397 152,892
Packeteer, Inc.* 10,250 110,803
Ixia* 11,325 110,079
Bel Fuse, Inc. -- Class B 3,172 104,930
Extreme Networks, Inc.*+ 10,845 48,260
--------------
TOTAL COMMUNICATIONS EQUIPMENT 1,628,449
--------------
TOTAL INFORMATION TECHNOLOGY 15,581,077
--------------
CONSUMER DISCRETIONARY 9.9%
SPECIALTY RETAIL 2.4%
Stage Stores, Inc.* 10,959 375,017
Sonic Automotive, Inc. 17,890 358,694
Jo-Ann Stores, Inc.* 11,193 313,852
Children's Place Retail Stores, Inc.* 12,845 307,124
Group 1 Automotive, Inc.*+ 10,657 290,723
United Auto Group, Inc. 11,359 284,997
Lithia Motors, Inc. -- Class A 12,775 271,596
Stein Mart, Inc.* 17,784 270,672
Hollywood Entertainment Corp.* 25,096 247,698
Guitar Center, Inc.*+ 5,265 227,975
Christopher & Banks Corp. 13,463 215,543
Tractor Supply Co.* 6,614 207,944
Haverty Furniture Cos., Inc. 8,950 156,983
PEP Boys-Manny Moe & Jack+ 1,180 16,520
--------------
TOTAL SPECIALTY RETAIL 3,545,338
--------------
HOTELS RESTAURANTS & LEISURE 2.1%
Vail Resorts, Inc.* 18,197 328,820
Rare Hospitality International, Inc.* 12,105 322,598
Ryan's Restaurant Group, Inc.* 21,510 319,208
Jack in the Box, Inc.* 9,946 315,587
O'Charleys, Inc.* 18,931 308,575
Boca Resorts, Inc. -- Class A* 15,414 286,238
CEC Entertainment, Inc.* 6,796 249,753
Bob Evans Farms, Inc. 8,483 230,398
Lone Star Steakhouse & Saloon, Inc. 7,705 199,020
Bluegreen Corp.* 11,959 133,104
Scientific Games Corp. -- Class A* 5,791 110,608
Triarc Cos. -- Class B 6,074 69,669
Ameristar Casinos, Inc. 1,807 54,662
Pinnacle Entertainment, Inc.* 3,748 51,722
Red Robin Gourmet Burgers, Inc.* 1,163 50,788
Multimedia Games, Inc.* 2,249 34,860
Penn National Gaming, Inc.* 490 19,796
Sunterra Corp.* 1,910 18,202
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 3,103,608
--------------
MEDIA 1.4%
RH Donnelley Corp.*+ 8,391 414,180
Reader's Digest Association, Inc. 27,275 397,942
Mediacom Communications Corp.* 44,038 287,568
Salem Communications Corp./DE --
Class A* 10,911 276,266
Valassis Communications, Inc.* 5,330 157,661
Sinclair Broadcast Group, Inc. --
Class A 19,093 139,379
Arbitron, Inc.* 2,962 108,439
Spanish Broadcasting Systems* 8,913 87,704
Journal Communications, Inc. --
Class A 3,716 65,179
Entravision Communications Corp. --
Class A* 8,380 63,772
Navarre Corp.* 2,369 34,327
--------------
TOTAL MEDIA 2,032,417
--------------
HOUSEHOLD DURABLES 1.3%
American Greetings Corp. --
Class A*+ 17,277 433,998
Tupperware Corp.+ 20,480 347,750
Meritage Homes Corp.* 3,873 304,418
Champion Enterprises, Inc.* 19,132 196,868
Blyth, Inc. 4,660 143,994
Levitt Corp. -- Class A 5,786 135,740
Furniture Brands International, Inc.+ 5,387 135,106
Ethan Allen Interiors, Inc.+ 3,810 132,398
--------------
TOTAL HOUSEHOLD DURABLES 1,830,272
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
TEXTILES & APPAREL 1.0%
Kellwood Co. 11,930 $ 434,848
Phillips-Van Heusen Corp. 16,285 362,830
K-Swiss, Inc. -- Class A+ 15,620 300,685
Quiksilver, Inc.* 10,358 263,300
Carter's, Inc.* 2,850 78,917
--------------
TOTAL TEXTILES & APPAREL 1,440,580
--------------
AUTO COMPONENTS 0.6%
Cooper Tire & Rubber Co. 16,689 336,617
Visteon Corp.+ 38,631 308,662
ArvinMeritor, Inc. 6,133 114,994
Hayes Lemmerz International, Inc.* 3,920 39,827
LKQ Corp.* 2,070 37,819
Tower Automotive, Inc.*+ 6,960 14,546
--------------
TOTAL AUTO COMPONENTS 852,465
--------------
INTERNET & CATALOG RETAIL 0.4%
Insight Enterprises, Inc.* 20,616 347,174
1-800-FLOWERS.com, Inc.* 11,080 91,964
J. Jill Group, Inc.* 1,888 37,477
Coldwater Creek, Inc.*+ 1,044 21,788
Priceline.com, Inc.*+ 490 10,863
--------------
TOTAL INTERNET & CATALOG RETAIL 509,266
--------------
AUTOMOBILES 0.3%
Winnebago Industries, Inc.+ 4,540 157,266
Monaco Coach Corp. 6,110 132,282
Thor Industries, Inc. 4,630 122,556
Fleetwood Enterprises, Inc.*+ 4,630 70,283
--------------
TOTAL AUTOMOBILES 482,387
--------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
K2, Inc.* 9,980 142,814
Marinemax, Inc.* 3,591 80,869
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 223,683
--------------
DISTRIBUTORS 0.1%
Wesco International, Inc.* 8,352 202,536
--------------
TOTAL DISTRIBUTORS 202,536
--------------
MULTILINE RETAIL 0.1%
ShopKo Stores, Inc.* 3,696 64,347
99 Cents Only Stores*+ 3,659 52,068
--------------
TOTAL MULTILINE RETAIL 116,415
--------------
TOTAL CONSUMER DISCRETIONARY 14,338,967
--------------
INDUSTRIALS 9.8%
MACHINERY 2.6%
Joy Global, Inc. 13,822 475,200
Kennametal, Inc. 9,748 440,122
Ceradyne, Inc.* 8,346 366,473
Lincoln Electric Holdings, Inc. 11,062 346,904
ESCO Technologies, Inc.* 5,116 346,660
Tecumseh Products Co. -- Class A 8,265 346,056
IDEX Corp. 9,925 337,053
Clarcor, Inc. 7,025 334,882
Stewart & Stevenson Services, Inc. 18,277 322,955
Toro Co. 2,600 177,580
Middleby Corp. 2,282 120,147
Wabash National Corp.* 3,740 102,738
Gardner Denver, Inc.* 2,146 59,165
Flowserve Corp.* 1,870 45,217
--------------
TOTAL MACHINERY 3,821,152
--------------
COMMERCIAL SERVICES & SUPPLIES 2.5%
Strayer Education, Inc.+ 3,798 436,808
Waste Connections, Inc.* 12,224 387,256
CoStar Group, Inc.* 7,835 385,404
School Specialty, Inc.*+ 9,381 369,705
NCO Group, Inc.* 12,236 329,760
Rollins, Inc. 13,398 325,437
Bowne & Co., Inc. 22,086 286,897
Tetra Tech, Inc.*+ 22,392 283,707
Greg Manning Auctions, Inc.*+ 19,076 213,461
Central Parking Corp. 15,452 204,275
Corrections Corporation of America* 3,438 121,568
G & K Services, Inc. -- Class A 2,478 98,476
Consolidated Graphics, Inc.* 2,175 91,133
Universal Technical Institute, Inc.* 2,800 84,504
Intersections, Inc.* 668 9,786
Brady Corp. -- Class A 94 4,584
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,632,761
--------------
AEROSPACE & DEFENSE 1.0%
Aviall, Inc.* 16,699 340,660
Esterline Technologies Corp.*+ 10,700 327,313
Triumph Group, Inc.* 9,582 324,159
Orbital Sciences Corp.* 24,795 283,159
Moog, Inc. -- Class A* 5,368 194,858
AAR Corp.* 4,730 58,889
--------------
TOTAL AEROSPACE & DEFENSE 1,529,038
--------------
ROAD & RAIL 0.9%
Laidlaw International, Inc.* 31,295 514,803
Dollar Thrifty Automotive
Group, Inc.* 11,932 290,305
Werner Enterprises, Inc.+ 7,920 152,935
Swift Transportation Co., Inc.*+ 8,200 137,924
Kansas City Southern* 8,352 126,700
Arkansas Best Corp. 2,560 93,747
SCS Transportation, Inc.* 2,187 41,422
--------------
TOTAL ROAD & RAIL 1,357,836
--------------
See Notes to Financial Statements.
30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
CONSTRUCTION & ENGINEERING 0.7%
Dycom Industries, Inc.* 13,063 $ 370,858
Shaw Group, Inc.*+ 28,490 341,880
Washington Group
International, Inc.* 4,830 167,215
EMCOR Group, Inc.* 2,674 100,596
--------------
TOTAL CONSTRUCTION & ENGINEERING 980,549
--------------
ELECTRICAL EQUIPMENT 0.7%
Woodward Governor Co. 4,837 326,449
Thomas & Betts Corp.+ 10,754 288,422
Regal-Beloit Corp. 8,234 199,180
FuelCell Energy, Inc.* 4,480 45,920
A.O. Smith Corp. 1,750 42,613
American Superconductor Corp.* 2,930 36,391
Plug Power, Inc.* 5,515 35,351
--------------
TOTAL ELECTRICAL EQUIPMENT 974,326
--------------
BUILDING PRODUCTS 0.4%
Griffon Corp.*+ 14,379 303,397
Jacuzzi Brands, Inc.* 28,387 263,999
Lennox International, Inc. 5,064 75,656
--------------
TOTAL BUILDING PRODUCTS 643,052
--------------
AIRLINES 0.4%
SkyWest, Inc. 19,872 299,074
AirTran Holdings, Inc.* 19,868 197,885
Continental Airlines, Inc. -- Class B*+ 7,868 67,035
Frontier Airlines, Inc.* 6,176 47,432
--------------
TOTAL AIRLINES 611,426
--------------
MARINE 0.2%
Alexander & Baldwin, Inc. 8,767 297,552
--------------
TOTAL MARINE 297,552
--------------
INDUSTRIAL CONGLOMERATES 0.2%
Tredegar Corp. 12,520 227,864
--------------
TOTAL INDUSTRIAL CONGLOMERATES 227,864
--------------
AIR FREIGHT & COURIERS 0.2%
Pacer International, Inc.*+ 13,473 220,957
--------------
TOTAL AIR FREIGHT & COURIERS 220,957
--------------
TOTAL INDUSTRIALS 14,296,513
--------------
HEALTH CARE 9.4%
HEALTH CARE PROVIDERS & SERVICES 2.7%
Cerner Corp.*+ 9,269 400,977
LifePoint Hospitals, Inc.*+ 11,271 338,243
Magellan Health Services, Inc.* 8,187 299,317
Advisory Board Co.* 8,601 288,994
NDCHealth Corp. 15,549 249,561
AmSurg Corp.* 11,771 249,310
AMERIGROUP Corp.* 3,550 199,687
eResearch Technology, Inc.* 14,190 189,153
First Health Group Corp.* 9,420 151,568
Res-Care, Inc.* 12,008 142,295
Apria Healthcare Group, Inc.* 5,160 140,610
American Healthways, Inc.* 4,830 140,601
Centene Corp.* 2,968 126,377
Dendrite International, Inc.* 7,175 115,661
Molina Healthcare, Inc.* 2,820 100,110
Beverly Enterprises, Inc.*+ 12,820 97,047
RehabCare Group, Inc.* 4,134 95,206
LabOne, Inc.* 3,014 88,099
Parexel International Corp.* 4,242 83,143
Select Medical Corp. 6,110 82,057
Stewart Enterprises, Inc. -- Class A* 11,142 77,437
Province Healthcare Co.* 3,450 72,174
Genesis HealthCare Corp.* 2,330 70,855
United Surgical Partners
International, Inc.*+ 1,970 67,670
Odyssey HealthCare, Inc.* 3,456 61,344
LCA-Vision, Inc. 1,340 34,559
Hanger Orthopedic Group, Inc.* 5,737 28,742
Proxymed, Inc.* 1,410 14,058
VistaCare, Inc. -- Class A*+ 890 13,626
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,018,481
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.6%
Intuitive Surgical, Inc.* 18,189 450,178
Ventana Medical Systems, Inc.* 7,823 394,592
Visx, Inc.*+ 15,452 318,311
Align Technology, Inc.*+ 20,616 315,013
Kyphon, Inc.* 11,898 294,832
Biosite, Inc.*+ 5,679 278,044
Advanced Neuromodulation
Systems, Inc.*+ 9,015 273,605
DJ Orthopedics, Inc.* 15,208 268,421
Laserscope* 11,942 242,064
Varian, Inc.* 6,367 241,118
Hologic, Inc.* 11,762 226,654
CTI Molecluar Imaging, Inc.* 22,975 185,408
Steris Corp.*+ 6,731 147,678
Invacare Corp. 1,646 75,716
Datascope Corp. 1,103 41,142
Closure Medical Corp.* 2,270 32,325
Possis Medical, Inc.* 1,522 23,835
Conmed Corp.* 300 7,890
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,816,826
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
BIOTECHNOLOGY 2.4%
United Therapeutics Corp.*+ 12,987 $ 453,636
Incyte Corp.*+ 44,387 427,447
Human Genome Sciences, Inc.* 37,583 410,031
NPS Pharmaceuticals, Inc.*+ 17,381 378,558
Vertex Pharmaceuticals, Inc.*+ 33,406 350,763
Lexicon Genetics, Inc./TX* 42,498 280,062
InterMune, Inc.* 21,451 252,907
Digene Corp.* 9,099 236,210
deCODE genetics, Inc.* 22,370 168,446
Ligand Pharmaceuticals, Inc. --
Class B* 10,496 105,170
Cepheid, Inc.* 11,489 99,035
Exelixis, Inc.* 11,850 95,511
Pharmion Corp.*+ 1,091 56,401
Onyx Pharmaceuticals, Inc.*+ 1,289 55,440
Encysive Pharmaceuticals, Inc.* 5,037 45,484
Cubist Pharmaceuticals, Inc.* 3,982 39,342
--------------
TOTAL BIOTECHNOLOGY 3,454,443
--------------
PHARMACEUTICALS 1.7%
Connetics Corp.*+ 16,697 451,153
Perrigo Co. 21,339 438,516
Par Pharmaceutical Cos., Inc.*+ 11,391 409,279
Kos Pharmaceuticals, Inc.* 9,457 336,764
Impax Laboratories, Inc.* 19,699 302,577
First Horizon Pharmaceutical, Corp.* 12,132 242,761
Inspire Pharmaceuticals, Inc.* 10,080 158,558
KV Pharmaceutical Co.* 3,275 58,623
Alpharma, Inc. -- Class A 3,105 56,790
Barrier Therapeutics, Inc.* 651 7,916
Guilford Pharmaceuticals, Inc.*+ 5 25
--------------
TOTAL PHARMACEUTICALS 2,462,962
--------------
TOTAL HEALTH CARE 13,752,712
--------------
MATERIALS 4.8%
CHEMICALS 2.1%
OM Group, Inc.*+ 13,162 481,203
Millennium Chemicals, Inc.* 22,154 469,886
Georgia Gulf Corp. 10,412 464,271
Airgas, Inc. 17,394 418,674
Minerals Technologies, Inc. 6,576 387,063
PolyOne Corp.* 44,319 333,279
Ferro Corp. 9,069 197,795
Headwaters, Inc.* 3,819 117,854
Cambrex Corp. 3,840 84,288
Symyx Technologies, Inc.* 2,615 61,583
Terra Industries, Inc.* 3,809 32,986
--------------
TOTAL CHEMICALS 3,048,882
--------------
METALS & MINING 1.6%
Carpenter Technology Corp. 10,167 485,373
Hecla Mining Co.* 62,527 465,201
Stillwater Mining Co.* 21,075 326,662
Century Aluminum Co.* 9,143 253,535
Allegheny Technologies, Inc. 10,394 189,690
Titanium Metals Corp.* 8,080 189,557
Coeur d'Alene Mines Corp.*+ 27,518 130,435
Oregon Steel Mills, Inc.* 6,411 106,615
AK Steel Holding Corp.* 8,235 67,198
Metal Management, Inc.* 2,370 43,087
Metals USA, Inc.* 2,020 35,835
--------------
TOTAL METALS & MINING 2,293,188
--------------
CONTAINERS & PACKAGING 0.5%
AptarGroup, Inc. 9,869 433,940
Chesapeake Corp. 7,685 184,594
Longview Fibre Co. 5,360 81,740
Anchor Glass Container Corp. 7,149 58,693
--------------
TOTAL CONTAINERS & PACKAGING 758,967
--------------
PAPER & FOREST PRODUCTS 0.4%
Potlatch Corp.+ 9,256 433,273
Wausau-Mosinee Paper Corp. 4,630 77,090
--------------
TOTAL PAPER & FOREST PRODUCTS 510,363
--------------
CONSTRUCTION MATERIALS 0.2%
Eagle Materials, Inc. 3,320 236,716
Texas Industries, Inc.+ 2,070 106,481
--------------
TOTAL CONSTRUCTION MATERIALS 343,197
--------------
TOTAL MATERIALS 6,954,597
--------------
ENERGY 4.5%
OIL & GAS 2.6%
Tesoro Petroleum Corp.*+ 15,721 464,241
Cabot Oil & Gas Corp.+ 9,416 422,778
Meridian Resource Corp.* 44,485 392,803
Swift Energy Co.* 15,874 380,341
Magnum Hunter Resources, Inc.* 32,142 370,919
Giant Industries, Inc.* 12,572 305,500
Holly Corp. 11,568 294,984
Plains Exploration &
Production Co.*+ 11,833 282,335
Callon Petroleum Co.* 19,711 249,935
Encore Acquisition Co.* 5,919 204,206
Southwestern Energy Co.* 3,282 137,811
Stone Energy Corp.* 2,390 104,586
Overseas Shipholding Group, Inc.+ 2,063 102,407
Atlas America, Inc.* 1,440 31,349
Syntroleum Corp.* 2,152 15,107
--------------
TOTAL OIL & GAS 3,759,302
--------------
See Notes to Financial Statements.
32 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
ENERGY EQUIPMENT & SERVICES 1.9%
Unit Corp.*+ 15,041 $ 527,638
Cal Dive International, Inc.* 11,908 424,163
CARBO Ceramics, Inc. 5,329 384,434
Offshore Logistics, Inc.* 11,107 382,303
Universal Compression
Holdings, Inc.* 10,501 357,769
Key Energy Services, Inc.* 31,892 352,407
Helmerich & Payne, Inc. 5,200 149,188
Todco -- Class A*+ 6,123 106,234
Hanover Compressor Co.*+ 7,831 105,327
Veritas DGC, Inc.*+ 2,670 60,823
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,850,286
--------------
TOTAL ENERGY 6,609,588
--------------
UTILITIES 2.1%
GAS UTILITIES 0.9%
Southern Union Co.*+ 21,201 434,613
Atmos Energy Corp. 7,490 188,673
Piedmont Natural Gas Co.+ 3,850 169,169
Nicor, Inc. 3,982 146,139
WGL Holdings, Inc. 5,004 141,413
Peoples Energy Corp.+ 3,336 139,045
--------------
TOTAL GAS UTILITIES 1,219,052
--------------
MULTI-UTILITIES 0.7%
CMS Energy Corp.*+ 42,890 408,313
Energen Corp. 5,105 263,163
Avista Corp. 8,343 151,008
Calpine Corp.*+ 49,454 143,416
Aquila, Inc.*+ 30,283 94,483
--------------
TOTAL MULTI-UTILITIES 1,060,383
--------------
ELECTRIC UTILITIES 0.5%
El Paso Electric Co.* 21,892 351,805
Idacorp, Inc. 5,226 151,868
Duquesne Light Holdings, Inc.+ 7,668 137,717
CH Energy Group, Inc. 1,280 58,624
Empire District Electric Co. 2,506 51,498
--------------
TOTAL ELECTRIC UTILITIES 751,512
--------------
TOTAL UTILITIES 3,030,947
--------------
CONSUMER STAPLES 1.9%
FOOD & DRUG RETAILING 0.6%
Longs Drug Stores Corp. 14,542 351,916
Ruddick Corp. 15,381 302,083
Wild Oats Markets, Inc.* 17,265 149,170
Central European
Distribution Corp.* 4,928 110,091
--------------
TOTAL FOOD & DRUG RETAILING 913,260
--------------
FOOD PRODUCTS 0.6%
Corn Products International, Inc.+ 9,430 434,723
Ralcorp Holdings, Inc.* 10,116 365,188
Sanderson Farms, Inc. 1,889 63,187
Cal-Maine Foods, Inc. 1,503 16,488
Lance, Inc. 490 7,913
--------------
TOTAL FOOD PRODUCTS 887,499
--------------
PERSONAL PRODUCTS 0.3%
USANA Health Sciences, Inc.* 6,108 212,559
Nu Skin Enterprises, Inc. 8,257 194,122
--------------
TOTAL PERSONAL PRODUCTS 406,681
--------------
TOBACCO 0.2%
Vector Group Ltd.+ 17,914 269,247
--------------
TOTAL TOBACCO 269,247
--------------
BEVERAGES 0.1%
Robert Mondavi Corp. -- Class A* 4,484 175,638
--------------
TOTAL BEVERAGES 175,638
--------------
HOUSEHOLD PRODUCTS 0.1%
Rayovac Corp.* 6,542 172,382
--------------
TOTAL HOUSEHOLD PRODUCTS 172,382
--------------
TOTAL CONSUMER STAPLES 2,824,707
--------------
TELECOMMUNICATION SERVICES 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.3%
Golden Telecom, Inc. 11,533 329,037
PTEK Holdings, Inc.* 11,530 98,812
Time Warner Telecom, Inc. -- Class A* 10,650 51,120
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 478,969
--------------
WIRELESS TELECOMMUNICATION SERVICES 0.2%
Alamosa Holdings, Inc.*+ 17,591 134,395
Arch Wireless, Inc. -- Class A* 1,960 56,311
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 190,706
--------------
TOTAL TELECOMMUNICATION SERVICES 669,675
--------------
TOTAL COMMON STOCKS
(Cost $94,122,265) 99,567,983
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 33
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 14.9%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 129,281 $ 129,281
1.71% due 10/01/04 10,802,081 10,802,081
1.70% due 10/01/04 10,802,081 10,802,081
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $21,733,443) 21,733,443
--------------
SECURITIES LENDING COLLATERAL 7.2%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 10,494,337 10,494,337
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $10,494,337) 10,494,337
--------------
TOTAL INVESTMENTS 90.5%
(Cost $126,350,045) $ 131,795,763
==============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 9.5% $ 13,764,310
==============
NET ASSETS - 100.0% $ 145,560,073
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
----------- --------------
FUTURES CONTRACTS PURCHASED
December 2004 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $81,424,060) 1,423 $ 1,088,411
==============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENTS
October 2004 Russell 2000 Index
Swap, Maturing 10/04/04**
(Notional Market Value
$2,620,230) 4,573 92,610
November 2004 Russell 2000 Index
Swap, Maturing 11/22/04**
(Notional Market Value
$34,831,396) 60,794 $ 855,058
--------------
(TOTAL NOTIONAL MARKET VALUE
$37,451,626) $ 947,668
==============
* NON-INCOME PRODUCING SECURITIES.
** PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
See Notes to Financial Statements.
34 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
FEDERAL AGENCY DISCOUNT NOTES 14.8%
Farmer Mac*
1.83% due 12/15/04 $ 3,200,000 $ 3,187,800
Federal Home Loan Bank*
1.72% due 10/13/04 2,000,000 1,998,853
--------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $5,186,653) 5,186,653
--------------
REPURCHASE AGREEMENTS 79.5%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 165,140 165,140
1.71% due 10/01/04 13,798,362 13,798,362
1.70% due 10/01/04 13,798,362 13,798,362
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $27,761,864) 27,761,864
--------------
TOTAL INVESTMENTS 94.3%
(Cost $32,948,517) $ 32,948,517
==============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 5.7% $ 1,989,292
==============
NET ASSETS - 100.0% $ 34,937,809
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
----------- --------------
FUTURES CONTRACTS SOLD SHORT
December 2004 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of Contracts
$16,593,800) 290 $ (82,736)
==============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
November 2004 Russell 2000 Index
Swap, Maturing 11/22/04**
(Notional Market Value
$18,384,375) 32,088 $ (454,991)
==============
* THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL
CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
** PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 35
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
------------ --------------
U.S. TREASURY OBLIGATIONS 94.9%
U.S. Treasury Bond
5.38% due 02/15/31 $135,891,000 $ 145,530,768
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $136,912,662) 145,530,768
--------------
REPURCHASE AGREEMENTS 4.8%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 43,830 43,830
1.71% due 10/01/04 3,662,333 3,662,333
1.70% due 10/01/04 3,662,333 3,662,333
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,368,496) 7,368,496
--------------
TOTAL INVESTMENTS 99.7%
(Cost $144,281,158) $ 152,899,264
==============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 0.3% $ 514,264
==============
NET ASSETS - 100.0% $ 153,413,528
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
------------ --------------
FUTURES CONTRACTS PURCHASED
December 2004 U.S. Treasury
Bond Futures Contracts
(Aggregate Market Value of
Contracts $50,035,625) 446 $ 1,096,125
==============
See Notes to Financial Statements.
36 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 90.6%
Repurchase Agreement (Note 6)
1.72% due 10/01/04+ $ 5,917,861 $ 5,917,861
1.71% due 10/01/04 12,374,084 12,374,084
1.70% due 10/01/04 12,374,084 12,374,084
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $30,666,029) 30,666,029
--------------
TOTAL INVESTMENTS 90.6%
(Cost $30,666,029) $ 30,666,029
==============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 9.4% $ 3,182,877
==============
NET ASSETS - 100.0% $ 33,848,906
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
----------- --------------
EQUITY INDEX SWAP AGREEMENT
October 2004 Dow Jones Europe STOXX
50 Index Swap, Maturing 10/12/04*
(Notional Market Value
$42,001,719) 12,594 $ 635,606
==============
* PRICE RETURN BASED ON DOW JONES EUROPE STOXX 50 INDEX +/- FINANCING AT A
VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30, 2004.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 37
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
FEDERAL AGENCY DISCOUNT NOTES 24.4%
Federal Home Loan Bank*
1.65% due 10/05/04 $10,000,000 $ 9,998,167
--------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $9,998,167) 9,998,167
--------------
REPURCHASE AGREEMENTS 93.4%
Repurchase Agreement (Note 6)
1.72% due 10/01/04+ 2,333,666 2,333,666
1.71% due 10/01/04 17,967,813 17,967,813
1.70% due 10/01/04 17,967,813 17,967,813
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $38,269,292) 38,269,292
--------------
TOTAL INVESTMENTS 117.8%
(Cost $48,267,459) $ 48,267,459
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (17.8)% $ (7,300,756)
==============
NET ASSETS - 100.0% $ 40,966,703
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
----------- --------------
FUTURES CONTRACTS PURCHASED
December 2004 Yen Currency
Exchange Futures Contracts
(Aggregate Market Value of
Contracts $5,476,200) 48 $ 44,122
December 2004 Nikkei 225
Futures Contracts
(Aggregate Market Value of
Contracts $3,526,250) 65 1,068
--------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $9,002,450) $ 45,190
==============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
October 2004 Topix 100 Index
Swap, Maturing 10/12/04**
(Notional Market Value
$47,826,248) 6,665,821 $ (1,534,044)
==============
* THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL
CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
** PRICE RETURN BASED ON TOPIX 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30,
2004.
See Notes to Financial Statements.
38 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 98.3%
INDUSTRIALS 20.8%
COMMERCIAL SERVICES & SUPPLIES 5.1%
Waste Connections, Inc.* 23,459 $ 743,181
United Stationers, Inc.* 16,212 703,601
ABM Industries, Inc. 23,734 478,240
School Specialty, Inc.*+ 11,068 436,190
NCO Group, Inc.* 15,534 418,641
G & K Services, Inc. -- Class A 10,198 405,269
Ionics, Inc.*+ 11,049 298,323
Consolidated Graphics, Inc.* 6,631 277,839
Viad Corp. 10,810 256,521
Central Parking Corp. 17,826 235,660
Spherion Corp.* 29,748 232,629
Bowne & Co., Inc. 17,234 223,870
Volt Information Sciences, Inc.* 7,465 214,768
CDI Corp. 9,646 197,743
Mobile Mini, Inc.* 7,088 175,782
PRG-Schultz International, Inc.* 30,232 173,532
SOURCECORP, Inc.* 7,741 171,386
Standard Register Co. 13,933 146,296
Angelica Corp. 4,396 109,372
Insurance Auto Auctions, Inc.* 5,636 96,657
On Assignment, Inc.* 12,281 54,528
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 6,050,028
--------------
MACHINERY 4.7%
Timken Co. 43,987 1,082,960
Mueller Industries, Inc. 17,041 731,911
Reliance Steel & Aluminum Co. 15,920 632,024
Albany International Corp. -- Class A 16,163 481,819
Watts Industries, Inc. -- Class A 15,791 423,988
JLG Industries, Inc. 21,290 357,672
Barnes Group, Inc. 11,346 311,675
Gardner Denver, Inc.* 9,677 266,795
Thomas Industries, Inc. 8,493 266,680
Stewart & Stevenson Services, Inc. 14,085 248,882
Valmont Industries, Inc. 11,705 244,283
Astec Industries, Inc.* 9,679 185,063
Robbins & Myers, Inc. 7,110 156,420
Wolverine Tube, Inc.* 7,275 84,026
Lydall, Inc.* 7,864 73,135
--------------
TOTAL MACHINERY 5,547,333
--------------
AEROSPACE & DEFENSE 2.8%
Curtiss-Wright Corp. 10,428 596,794
DRS Technologies, Inc.* 13,242 495,781
Moog, Inc. -- Class A* 12,534 454,984
Esterline Technologies Corp.* 10,364 317,035
Cubic Corp. 13,080 299,532
Gencorp, Inc. 21,853 296,108
EDO Corp. 9,709 269,425
Triumph Group, Inc.* 7,787 263,434
AAR Corp.*+ 15,786 196,536
Kaman Corp. -- Class A 11,063 132,092
--------------
TOTAL AEROSPACE & DEFENSE 3,321,721
--------------
ROAD & RAIL 2.1%
Yellow Roadway Corp.*+ 23,460 1,100,040
USF Corp.+ 13,573 487,135
Kansas City Southern* 30,602 464,232
Arkansas Best Corp. 12,124 443,981
--------------
TOTAL ROAD & RAIL 2,495,388
--------------
TRADING COMPANIES & DISTRIBUTORS 1.6%
Hughes Supply, Inc. 30,028 902,942
Watsco, Inc. 13,058 392,132
Applied Industrial Technologies, Inc. 9,600 343,104
Lawson Products, Inc. 4,598 188,380
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 1,826,558
--------------
CONSTRUCTION & ENGINEERING 1.2%
URS Corp.* 20,939 558,653
Shaw Group, Inc.*+ 31,118 373,416
EMCOR Group, Inc.* 7,441 279,930
Insituform Technologies, Inc. --
Class A* 13,075 244,110
--------------
TOTAL CONSTRUCTION & ENGINEERING 1,456,109
--------------
ELECTRICAL EQUIPMENT 1.1%
Woodward Governor Co. 5,478 369,710
A.O. Smith Corp. 14,416 351,030
Regal-Beloit Corp. 11,918 288,296
C&D Technologies, Inc. 12,397 235,791
MagneTek, Inc.* 13,932 104,072
--------------
TOTAL ELECTRICAL EQUIPMENT 1,348,899
--------------
BUILDING PRODUCTS 0.8%
Lennox International, Inc. 28,731 429,241
Universal Forest Products, Inc. 8,693 297,301
Apogee Enterprises, Inc.+ 13,325 172,292
--------------
TOTAL BUILDING PRODUCTS 898,834
--------------
AIRLINES 0.6%
SkyWest, Inc. 28,483 428,669
Frontier Airlines, Inc.* 17,349 133,240
FLYi, Inc.*+ 22,118 86,482
Mesa Air Group, Inc.* 15,380 78,438
--------------
TOTAL AIRLINES 726,829
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 39
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
INDUSTRIAL CONGLOMERATES 0.4%
Tredegar Corp. 18,734 $ 340,959
Standex International Corp. 5,958 145,971
--------------
TOTAL INDUSTRIAL CONGLOMERATES 486,930
--------------
MARINE 0.4%
Kirby Corp.* 12,034 483,165
--------------
TOTAL MARINE 483,165
--------------
TOTAL INDUSTRIALS 24,641,794
--------------
FINANCIALS 20.6%
BANKS 6.1%
South Financial Group, Inc. 34,445 971,349
Whitney Holding Corp. 19,976 838,992
United Bankshares, Inc. 21,160 733,194
Chittenden Corp. 22,530 613,942
Susquehanna Bancshares, Inc. 22,668 557,633
Provident Bankshares Corp. 16,112 540,558
Umpqua Holding Corp.+ 21,404 482,874
Republic Bancorp, Inc./MI 31,280 481,712
Community Bank System, Inc. 14,945 375,568
Irwin Financial Corp. 13,785 355,929
First Republic Bank+ 7,687 353,602
Boston Private Financial
Holdings, Inc. 13,400 334,464
Riggs National Corp.+ 14,326 318,037
Sterling Bancshares, Inc./TX 21,901 294,568
--------------
TOTAL BANKS 7,252,422
--------------
THRIFTS & MORTGAGE FINANCE 4.7%
Downey Financial Corp.+ 13,623 748,720
MAF Bancorp, Inc. 15,877 684,775
Flagstar Bancorp, Inc. 29,841 635,016
BankAtlantic Bancorp, Inc.-- Class A 29,243 535,732
Commercial Federal Corp. 19,399 523,385
Brookline Bancorp, Inc. 28,871 452,408
Waypoint Financial Corp. 16,310 449,667
Bankunited Financial Corp. -- Class A* 14,634 426,581
FirstFed Financial Corp.* 8,008 391,431
Sterling Financial Corp./WA* 11,050 389,402
Anchor BanCorp Wisconsin, Inc. 11,223 290,676
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 5,527,793
--------------
REAL ESTATE 4.2%
Shurgard Storage Centers, Inc. --
Class A 22,454 871,215
Capital Automotive REIT 18,684 584,249
Colonial Properties Trust 13,240 532,513
Kilroy Realty Corp. 13,915 529,187
Lexington Corporate Properties
Trust 23,591 512,161
Gables Residential Trust 14,283 487,764
Commercial Net Lease Realty 25,296 460,893
Entertainment Properties Trust+ 11,936 451,181
Glenborough Realty Trust, Inc. 15,623 324,490
Sovran Self Storage, Inc. 7,394 289,697
--------------
TOTAL REAL ESTATE 5,043,350
--------------
INSURANCE 4.1%
UICI 22,607 740,153
Delphi Financial Group, Inc. -- Class A 15,429 619,783
Philadelphia Consolidated
Holding Co.* 10,831 597,005
Selective Insurance Group, Inc. 13,578 505,102
ProAssurance Corp.* 14,265 499,560
RLI Corp. 12,271 460,776
LandAmerica Financial Group, Inc. 8,908 405,314
Zenith National Insurance Corp. 9,452 399,914
Stewart Information Services Corp. 8,845 348,493
Presidential Life Corp. 14,299 245,657
SCPIE Holdings, Inc. 4,885 43,818
--------------
TOTAL INSURANCE 4,865,575
--------------
CAPITAL MARKETS 0.7%
Piper Jaffray Cos., Inc.* 9,691 383,667
Investment Technology Group, Inc.* 20,420 312,426
SWS Group, Inc. 8,350 134,268
--------------
TOTAL CAPITAL MARKETS 830,361
--------------
CONSUMER FINANCE 0.5%
Cash America International, Inc. 13,804 337,646
World Acceptance Corp.* 9,033 210,017
--------------
TOTAL CONSUMER FINANCE 547,663
--------------
DIVERSIFIED FINANCIALS 0.3%
Financial Federal Corp.*+ 8,469 317,418
--------------
TOTAL DIVERSIFIED FINANCIALS 317,418
--------------
TOTAL FINANCIALS 24,384,582
--------------
CONSUMER DISCRETIONARY 14.4%
SPECIALTY RETAIL 4.5%
Zale Corp.* 25,360 712,616
Men's Wearhouse, Inc.*+ 17,670 513,313
Linens `N Things, Inc.* 22,078 511,547
Burlington Coat Factory
Warehouse Corp. 21,784 462,474
PEP Boys-Manny Moe & Jack+ 29,361 411,054
Jo-Ann Stores, Inc.* 10,975 307,739
Too, Inc.* 16,830 304,118
Group 1 Automotive, Inc.*+ 11,124 303,463
Movie Gallery, Inc. 15,741 275,940
Dress Barn, Inc.* 14,459 252,310
TBC Corp.* 10,850 242,389
See Notes to Financial Statements.
40 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Cato Corp. -- Class A 10,050 223,613
Gymboree Corp.* 14,950 215,280
Haverty Furniture Cos., Inc. 11,035 193,554
Building Material Holding Corp. 6,599 181,604
Goody's Family Clothing, Inc. 16,134 135,848
Hancock Fabrics, Inc./DE 9,202 110,240
--------------
TOTAL SPECIALTY RETAIL 5,357,102
--------------
HOUSEHOLD DURABLES 3.5%
M.D.C. Holdings, Inc. 15,866 1,159,805
Standard-Pacific Corp. 16,444 926,948
Meritage Homes Corp.* 6,345 498,717
La-Z-Boy, Inc.+ 25,349 384,798
Russ Berrie & Co., Inc. 10,166 204,845
Interface, Inc. -- Class A* 25,311 202,994
Skyline Corp. 4,087 163,684
National Presto Industries, Inc. 3,368 140,850
Libbey, Inc. 6,750 126,225
Department 56, Inc.* 6,566 107,026
Bassett Furniture Industries, Inc. 5,657 106,804
Fedders Corp. 14,930 61,064
Enesco Group, Inc.* 6,953 47,628
Applica, Inc.* 11,733 47,401
--------------
TOTAL HOUSEHOLD DURABLES 4,178,789
--------------
HOTELS RESTAURANTS & LEISURE 2.8%
Jack in the Box, Inc.* 17,944 569,363
Aztar Corp.* 16,849 446,498
IHOP Corp.+ 9,909 378,623
Landry's Restaurants, Inc. 13,495 368,279
Ryan's Restaurant Group, Inc.* 20,361 302,157
Marcus Corp. 14,595 284,165
Lone Star Steakhouse & Saloon, Inc. 10,680 275,864
Prime Hospitality Corp.* 21,747 264,661
Pinnacle Entertainment, Inc.* 17,352 239,458
O'Charleys, Inc.* 10,370 169,031
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 3,298,099
--------------
TEXTILES & APPAREL 1.4%
Kellwood Co. 13,460 490,617
Phillips-Van Heusen Corp. 14,988 333,933
Russell Corp. 15,968 268,901
Brown Shoe Co., Inc. 8,858 221,982
Stride Rite Corp. 18,465 189,266
Haggar Corp. 3,544 60,744
Ashworth, Inc.* 6,605 54,161
--------------
TOTAL TEXTILES & APPAREL 1,619,604
--------------
LEISURE EQUIPMENT & PRODUCTS 0.9%
Nautilus Group, Inc.+ 15,970 360,762
K2, Inc.* 22,737 325,367
Jakks Pacific, Inc.* 12,799 294,377
Action Performance Cos., Inc. 8,985 91,018
Meade Instruments Corp.* 9,722 30,235
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 1,101,759
--------------
MEDIA 0.4%
Information Holdings, Inc.* 10,201 277,773
4Kids Entertainment, Inc.* 6,580 132,916
--------------
TOTAL MEDIA 410,689
--------------
INTERNET & CATALOG RETAIL 0.3%
Insight Enterprises, Inc.* 23,631 397,946
--------------
TOTAL INTERNET & CATALOG RETAIL 397,946
--------------
MULTILINE RETAIL 0.2%
ShopKo Stores, Inc.* 14,305 249,050
--------------
TOTAL MULTILINE RETAIL 249,050
--------------
AUTO COMPONENTS 0.2%
Standard Motor Products, Inc. 9,679 146,250
Tower Automotive, Inc.*+ 28,374 59,302
--------------
TOTAL AUTO COMPONENTS 205,552
--------------
AUTOMOBILES 0.1%
Coachmen Industries, Inc. 7,651 120,733
--------------
TOTAL AUTOMOBILES 120,733
--------------
DISTRIBUTORS 0.1%
Advanced Marketing Services, Inc. 9,337 100,746
--------------
TOTAL DISTRIBUTORS 100,746
--------------
TOTAL CONSUMER DISCRETIONARY 17,040,069
--------------
INFORMATION TECHNOLOGY 12.0%
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.9%
Anixter International, Inc.*+ 18,088 634,708
Benchmark Electronics, Inc.* 20,061 597,818
Paxar Corp.* 19,382 439,584
Technitrol, Inc.* 19,713 384,403
Coherent, Inc.* 14,778 383,341
Aeroflex, Inc.* 36,230 382,951
Checkpoint Systems, Inc.* 18,365 285,943
Agilsys, Inc. 15,771 272,681
Electro Scientific Industries, Inc.* 13,753 238,614
CTS Corp. 17,661 222,529
Methode Electronics, Inc. -- Class A 17,338 221,753
Park Electrochemical Corp. 9,690 205,428
Radisys Corp.* 9,209 128,466
Bell Microproducts, Inc.* 13,667 106,056
Planar Systems, Inc.* 7,138 80,017
Gerber Scientific, Inc.* 10,865 71,600
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 4,655,892
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 41
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.3%
Skyworks Solutions, Inc.*+ 75,921 $ 721,249
Exar Corp.*+ 20,091 284,489
Photronics, Inc.* 15,945 265,006
Actel Corp.* 12,680 192,736
Ultratech, Inc.* 11,570 181,302
Standard Microsystems Corp.* 9,007 157,713
Cohu, Inc. 10,518 155,456
Dupont Photomasks, Inc.* 8,999 153,343
Rudolph Technologies, Inc.*+ 8,160 136,598
ESS Technologies, Inc.*+ 19,320 132,342
Pericom Semiconductor Corp.* 12,915 124,759
Supertex, Inc.* 6,279 122,001
Alliance Semiconductor Corp.* 17,198 59,505
Three-Five Systems, Inc.* 10,589 29,014
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 2,715,513
--------------
IT CONSULTING & SERVICES 1.8%
CACI International, Inc. -- Class A*+ 14,260 752,643
eFunds Corp.* 23,531 437,441
MAXIMUS, Inc.* 10,570 304,522
Mantech International Corp. --
Class A* 15,780 295,402
Ciber, Inc.* 29,426 221,283
Pegasus Solutions, Inc.* 10,875 129,630
--------------
TOTAL IT CONSULTING & SERVICES 2,140,921
--------------
SOFTWARE 1.5%
Internet Security Systems, Inc.*+ 23,042 391,714
THQ, Inc.*+ 19,105 371,783
Verity, Inc.* 18,013 232,008
JDA Software Group, Inc.* 14,143 153,027
EPIQ Systems, Inc.*+ 8,690 135,390
SPSS, Inc.* 8,600 114,638
NYFIX, Inc.* 15,795 96,034
Roxio, Inc.*+ 16,955 87,149
Captaris, Inc.* 15,362 65,442
Phoenix Technologies, Ltd.* 12,014 59,950
QRS Corp.* 7,810 54,045
Radiant Systems, Inc.* 12,890 51,818
--------------
TOTAL SOFTWARE 1,812,998
--------------
COMMUNICATIONS EQUIPMENT 1.5%
Belden CDT, Inc. 22,926 499,787
Black Box Corp.+ 8,546 315,775
Symmetricom, Inc.* 21,928 207,439
Audiovox Corp. -- Class A* 11,240 189,281
C-COR, Inc.* 20,950 177,027
Digi International, Inc.* 10,615 121,329
PC-Tel, Inc.* 10,214 84,368
Network Equipment
Technologies, Inc.* 11,887 78,573
Brooktrout, Inc.* 6,330 57,350
Tollgrade Communications, Inc.* 6,434 56,555
SCM Microsystems, Inc.* 7,496 20,539
--------------
TOTAL COMMUNICATIONS EQUIPMENT 1,808,023
--------------
COMPUTERS & PERIPHERALS 0.8%
Adaptec, Inc.*+ 53,706 408,166
Hutchinson Technology, Inc.*+ 12,746 340,700
Pinnacle Systems, Inc.* 33,542 139,870
--------------
TOTAL COMPUTERS & PERIPHERALS 888,736
--------------
INTERNET SOFTWARE & SERVICES 0.2%
Digital Insight Corp.*+ 17,261 235,267
--------------
TOTAL INTERNET SOFTWARE & SERVICES 235,267
--------------
TOTAL INFORMATION TECHNOLOGY 14,257,350
--------------
MATERIALS 8.2%
METALS & MINING 3.3%
Steel Dynamics, Inc.+ 24,220 935,376
Commercial Metals Co. 14,240 565,613
Carpenter Technology Corp. 11,588 553,211
Cleveland-Cliffs, Inc.*+ 5,250 424,568
Quanex Corp. 8,011 410,804
Ryerson Tull, Inc. 12,205 209,560
RTI International Metals, Inc.* 10,360 200,673
Brush Engineered Materials, Inc.* 9,288 192,355
Steel Technologies, Inc. 6,263 160,439
Imco Recycling, Inc.* 7,608 86,731
A.M. Castle & Co.* 7,676 77,911
Commonwealth Industries, Inc.* 7,930 74,066
--------------
TOTAL METALS & MINING 3,891,307
--------------
CHEMICALS 2.2%
OM Group, Inc.*+ 13,801 504,565
H.B. Fuller Co. 13,932 381,737
PolyOne Corp.* 44,727 336,347
A. Schulman, Inc. 14,772 325,575
Arch Chemicals, Inc. 11,381 324,928
Cambrex Corp. 12,753 279,928
Wellman, Inc. 15,617 132,432
Quaker Chemical Corp. 4,739 114,447
Material Sciences Corp.* 6,966 93,971
Penford Corp. 4,262 74,201
--------------
TOTAL CHEMICALS 2,568,131
--------------
CONTAINERS & PACKAGING 1.4%
AptarGroup, Inc. 17,759 780,863
Rock-Tenn Co. -- Class A 17,422 274,222
See Notes to Financial Statements.
42 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Caraustar Industries, Inc.* 13,927 $ 233,556
Chesapeake Corp. 9,525 228,791
Myers Industries, Inc. 16,284 178,310
--------------
TOTAL CONTAINERS & PACKAGING 1,695,742
--------------
PAPER & FOREST PRODUCTS 0.8%
Wausau-Mosinee Paper Corp. 25,195 419,497
Schweitzer-Mauduit
International, Inc. 7,226 234,122
Buckeye Technologies, Inc.* 18,082 201,614
Pope & Talbot, Inc. 7,773 136,805
--------------
TOTAL PAPER & FOREST PRODUCTS 992,038
--------------
CONSTRUCTION MATERIALS 0.5%
Texas Industries, Inc.+ 10,365 533,176
--------------
TOTAL CONSTRUCTION MATERIALS 533,176
--------------
TOTAL MATERIALS 9,680,394
--------------
UTILITIES 7.9%
GAS UTILITIES 4.5%
UGI Corp. 24,919 928,482
Piedmont Natural Gas Co.+ 18,688 821,151
Southern Union Co.*+ 39,966 819,308
Atmos Energy Corp. 30,571 770,084
New Jersey Resources Corp. 13,540 560,556
Northwest Natural Gas Co. 13,391 424,896
Southwest Gas Corp. 17,277 413,784
Laclede Group, Inc. 10,274 300,309
Cascade Natural Gas Corp. 5,459 115,895
NUI Corp. 7,810 104,185
--------------
TOTAL GAS UTILITIES 5,258,650
--------------
ELECTRIC UTILITIES 2.1%
Allete, Inc.+ 14,403 468,097
Unisource Energy Corp. 16,770 408,350
Cleco Corp. 22,964 395,899
El Paso Electric Co.* 23,271 373,965
CH Energy Group, Inc. 7,675 351,515
UIL Holding Corp. 7,121 350,282
Central Vermont Public Service Corp. 5,934 119,333
Green Mountain Power Corp. 2,524 65,750
--------------
TOTAL ELECTRIC UTILITIES 2,533,191
--------------
MULTI-UTILITIES 1.1%
Energen Corp. 17,716 913,260
Avista Corp. 23,634 427,775
--------------
TOTAL MULTI-UTILITIES 1,341,035
--------------
WATER UTILITIES 0.2%
American States Water Co. 8,174 203,533
--------------
TOTAL WATER UTILITIES 203,533
--------------
TOTAL UTILITIES 9,336,409
--------------
HEALTH CARE 5.7%
HEALTH CARE PROVIDERS & SERVICES 3.1%
AMERIGROUP Corp.* 12,180 685,125
Province Healthcare Co.*+ 24,232 506,933
Owens & Minor, Inc. 19,199 487,655
Sunrise Senior Living, Inc.*+ 10,019 351,867
Chemed Corp. 6,040 336,670
Parexel International Corp.* 12,755 249,998
Cross Country Healthcare, Inc.* 15,627 242,218
Gentiva Health Services, Inc.* 11,914 195,032
RehabCare Group, Inc.* 7,962 183,365
Hooper Holmes, Inc. 31,762 142,294
OCA, Inc.*+ 24,478 116,026
CryoLife, Inc.*+ 11,374 82,575
Curative Health Services, Inc.* 6,300 43,281
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 3,623,039
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.1%
Invacare Corp. 15,191 698,786
Conmed Corp.* 14,584 383,559
Sola International, Inc.* 15,729 299,637
Analogic Corp.+ 6,643 276,947
Datascope Corp. 7,176 267,665
Viasys Healthcare, Inc.* 15,096 252,556
Vital Signs, Inc. 6,182 197,700
Theragenics Corp.* 14,630 53,400
Osteotech, Inc.* 8,350 32,899
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,463,149
--------------
PHARMACEUTICALS 0.4%
Alpharma, Inc. -- Class A 25,632 468,809
--------------
TOTAL PHARMACEUTICALS 468,809
--------------
BIOTECHNOLOGY 0.1%
Savient Pharmaceuticals, Inc.* 29,464 67,768
Arqule, Inc.* 14,105 65,165
--------------
TOTAL BIOTECHNOLOGY 132,933
--------------
TOTAL HEALTH CARE 6,687,930
--------------
ENERGY 4.6%
ENERGY EQUIPMENT & SERVICES 2.5%
Lone Star Technologies, Inc.*+ 14,186 536,231
Oceaneering International, Inc.*+ 12,315 453,685
SEACOR Holdings, Inc.* 8,930 417,477
Offshore Logistics, Inc.* 11,151 383,817
Veritas DGC, Inc.*+ 16,320 371,770
Atwood Oceanics, Inc.* 6,789 322,749
W-H Energy Services, Inc.* 13,421 278,486
Dril-Quip, Inc.* 8,484 189,193
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,953,408
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 43
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
OIL & GAS 2.1%
Cimarex Energy Co.* 20,229 $ 706,801
Spinnaker Exploration Co.*+ 16,583 581,068
Stone Energy Corp.* 12,964 567,305
Remington Oil & Gas Corp.* 13,433 352,616
Swift Energy Co.* 13,674 327,629
--------------
TOTAL OIL & GAS 2,535,419
--------------
TOTAL ENERGY 5,488,827
--------------
CONSUMER STAPLES 3.8%
FOOD PRODUCTS 2.2%
Corn Products International, Inc. 18,036 831,460
Flowers Foods, Inc. 21,371 552,440
Ralcorp Holdings, Inc.* 14,281 515,544
Hain Celestial Group, Inc.* 17,831 315,252
American Italian Pasta Co. -- Class A+ 8,835 231,035
J&J Snack Foods Corp.* 4,393 188,372
--------------
TOTAL FOOD PRODUCTS 2,634,103
--------------
FOOD & DRUG RETAILING 1.5%
Performance Food Group Co.*+ 22,627 536,260
Casey's General Stores, Inc. 24,463 454,767
Longs Drug Stores Corp. 18,211 440,707
Nash Finch Co. 5,976 187,945
Great Atlantic & Pacific Tea Co.* 18,851 114,991
--------------
TOTAL FOOD & DRUG RETAILING 1,734,670
--------------
TOBACCO 0.1%
DIMON, Inc. 22,083 130,069
--------------
TOTAL TOBACCO 130,069
--------------
TOTAL CONSUMER STAPLES 4,498,842
--------------
TELECOMMUNICATION SERVICES 0.3%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
General Communication -- Class A* 28,034 253,708
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 253,708
--------------
WIRELESS TELECOMMUNICATION SERVICES 0.1%
Boston Communications
Group, Inc.* 8,587 75,308
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 75,308
--------------
TOTAL TELECOMMUNICATION SERVICES 329,016
--------------
TOTAL COMMON STOCKS
(Cost $110,353,049) 116,345,213
--------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 1.4%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 9,852 $ 9,852
1.71% due 10/01/04 823,208 823,208
1.70% due 10/01/04 823,208 823,208
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,656,268) 1,656,268
-------------
SECURITIES LENDING COLLATERAL 6.9%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 8,100,047 8,100,047
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,100,047) 8,100,047
-------------
TOTAL INVESTMENTS 106.6%
(Cost $120,109,364) $ 126,101,528
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.6)% $ (7,785,679)
=============
NET ASSETS - 100.0% $ 118,315,849
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
44 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 98.1%
FINANCIALS 24.5%
INSURANCE 7.6%
Fidelity National Financial, Inc. 17,535 $ 668,083
Old Republic International Corp. 18,403 460,627
Everest Re Group Ltd. 5,664 421,005
W.R. Berkley Corp. 8,515 358,992
Unitrin, Inc. 6,901 286,875
First American Corp. 8,930 275,312
Protective Life Corp. 6,994 274,934
American Financial Group, Inc./OH+ 7,474 223,398
HCC Insurance Holdings, Inc.+ 6,564 197,905
Stancorp Financial Group, Inc. 2,775 197,580
AmerUs Group Co.+ 3,843 157,563
Allmerica Financial Corp.* 5,419 145,663
Ohio Casualty Corp.* 6,166 129,054
Horace Mann Educators Corp. 4,278 75,207
--------------
TOTAL INSURANCE 3,872,198
--------------
THRIFTS & MORTGAGE FINANCE 5.2%
New York Community Bancorp, Inc.+ 26,690 548,213
Radian Group, Inc.+ 9,408 434,932
PMI Group, Inc. 9,708 393,951
Independence Community Bank
Corp. 8,510 332,315
Astoria Financial Corp. 7,736 274,551
Webster Financial Corp. 5,402 266,805
IndyMac Bancorp, Inc. 6,147 222,521
Washington Federal, Inc. 7,910 198,936
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,672,224
--------------
BANKS 4.7%
Banknorth Group, Inc. 17,471 611,485
Hibernia Corp. -- Class A 15,678 414,056
Mercantile Bankshares Corp. 7,968 382,145
Associated Banc-Corp 11,075 355,175
Colonial BancGroup, Inc.+ 13,507 276,218
FirstMerit Corp.+ 8,587 225,881
Greater Bay Bancorp+ 5,142 147,833
--------------
TOTAL BANKS 2,412,793
--------------
REAL ESTATE 3.9%
Developers Diversified Realty Corp. 10,312 403,715
Liberty Property Trust 8,613 343,142
AMB Property Corp. 8,389 310,561
Hospitality Properties Trust 6,791 288,549
Mack-Cali Realty Corp. 6,090 269,787
New Plan Excel Realty Trust 10,365 259,125
Highwoods Properties, Inc. 5,459 134,346
--------------
TOTAL REAL ESTATE 2,009,225
--------------
CAPITAL MARKETS 1.4%
A.G. Edwards, Inc.+ 7,979 276,233
Jefferies Group, Inc.+ 5,730 197,513
Raymond James Financial, Inc. 7,483 180,490
LaBranche & Co., Inc.* 6,025 50,911
--------------
TOTAL CAPITAL MARKETS 705,147
--------------
DIVERSIFIED FINANCIALS 1.0%
Leucadia National Corp. 7,121 403,405
GATX Corp. 4,871 129,861
--------------
TOTAL DIVERSIFIED FINANCIALS 533,266
--------------
CONSUMER FINANCE 0.7%
AmeriCredit Corp.* 15,880 331,574
--------------
TOTAL CONSUMER FINANCE 331,574
--------------
TOTAL FINANCIALS 12,536,427
--------------
CONSUMER DISCRETIONARY 14.8%
HOUSEHOLD DURABLES 6.2%
D.R. Horton, Inc.+ 23,535 779,244
Lennar Corp. -- Class A+ 15,740 749,224
Mohawk Industries, Inc.* 6,750 535,883
Toll Brothers, Inc.* 7,574 350,903
Hovnanian Enterprises, Inc. --
Class A*+ 6,140 246,214
Ryland Group, Inc.+ 2,352 217,936
American Greetings Corp. --
Class A*+ 6,885 172,951
Furniture Brands International, Inc.+ 5,556 139,345
--------------
TOTAL HOUSEHOLD DURABLES 3,191,700
--------------
SPECIALTY RETAIL 2.4%
Foot Locker, Inc.+ 15,708 372,279
Barnes & Noble, Inc.*+ 7,051 260,887
Borders Group, Inc. 7,717 191,381
AnnTaylor Stores Corp.*+ 7,164 167,638
Pier 1 Imports, Inc. 8,820 159,466
Payless Shoesource, Inc.*+ 6,875 69,644
--------------
TOTAL SPECIALTY RETAIL 1,221,295
--------------
AUTO COMPONENTS 2.0%
Lear Corp.+ 6,922 376,903
BorgWarner, Inc. 5,656 244,848
ArvinMeritor, Inc. 6,990 131,063
Modine Manufacturing Co. 3,424 103,097
Bandag, Inc. 1,858 81,380
Superior Industries International, Inc. 2,612 78,229
--------------
TOTAL AUTO COMPONENTS 1,015,520
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 45
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
HOTELS RESTAURANTS & LEISURE 1.6%
Caesars Entertainment, Inc.* 31,273 $ 522,259
CBRL Group, Inc.+ 4,814 173,689
Bob Evans Farms, Inc. 3,502 95,114
Six Flags, Inc.* 9,436 51,332
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 842,394
--------------
MEDIA 1.5%
Belo Corp. -- Class A 11,619 261,892
Entercom Communications Corp.* 4,922 160,753
Media General, Inc.+ 2,350 131,482
Scholastic Corp.* 3,985 123,097
Emmis Communications Corp. --
Class A*+ 5,675 102,491
--------------
TOTAL MEDIA 779,715
--------------
MULTILINE RETAIL 0.9%
Neiman-Marcus Group, Inc. --
Class A+ 4,868 279,910
Saks, Inc.* 14,361 173,050
--------------
TOTAL MULTILINE RETAIL 452,960
--------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Callaway Golf Co. 7,619 80,533
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 80,533
--------------
TOTAL CONSUMER DISCRETIONARY 7,584,117
--------------
UTILITIES 11.7%
ELECTRIC UTILITIES 6.4%
Wisconsin Energy Corp.+ 11,860 378,334
Pepco Holdings, Inc. 18,723 372,588
Alliant Energy Corp. 11,463 285,199
NSTAR 5,409 265,582
Northeast Utilities 12,919 250,499
Puget Energy, Inc. 10,020 227,454
OGE Energy Corp.+ 8,840 223,033
Great Plains Energy, Inc.+ 7,529 219,470
Hawaiian Electric Industries, Inc.+ 8,098 214,921
Westar Energy, Inc. 8,679 175,316
WPS Resources Corp. 3,674 165,293
Duquesne Light Holdings, Inc.+ 7,736 138,939
PNM Resources, Inc. 6,076 136,771
Idacorp, Inc. 3,764 109,382
Black Hills Corp.+ 3,244 90,118
--------------
TOTAL ELECTRIC UTILITIES 3,252,899
--------------
MULTI-UTILITIES 4.6%
SCANA Corp.+ 11,313 422,427
Questar Corp. 8,512 390,020
Energy East Corp. 14,798 372,614
MDU Resources Group, Inc. 11,847 311,932
Oneok, Inc. 10,440 271,649
National Fuel Gas Co.+ 8,385 237,547
Vectren Corp. 7,689 193,609
Sierra Pacific Resources Corp.*+ 11,836 105,932
Aquila, Inc.*+ 23,760 74,131
--------------
TOTAL MULTI-UTILITIES 2,379,861
--------------
GAS UTILITIES 0.7%
AGL Resources, Inc. 6,588 202,713
WGL Holdings, Inc. 4,805 135,789
--------------
TOTAL GAS UTILITIES 338,502
--------------
TOTAL UTILITIES 5,971,262
--------------
INDUSTRIALS 11.3%
MACHINERY 3.2%
Pentair, Inc.+ 10,096 352,451
SPX Corp. 7,695 272,403
AGCO Corp.*+ 9,082 205,435
Harsco Corp. 4,129 185,392
Kennametal, Inc. 3,602 162,630
Trinity Industries, Inc.+ 4,673 145,658
Flowserve Corp.* 5,610 135,650
Federal Signal Corp. 4,759 88,422
Tecumseh Products Co. -- Class A 1,771 74,152
--------------
TOTAL MACHINERY 1,622,193
--------------
COMMERCIAL SERVICES & SUPPLIES 2.9%
Republic Services, Inc. 15,359 457,084
Manpower, Inc. 9,070 403,524
Laureate Education, Inc.*+ 4,536 168,830
Adesa, Inc.* 9,595 157,646
United Rentals, Inc.*+ 7,843 124,625
Banta Corp. 2,460 97,785
Kelly Services, Inc. 3,489 93,191
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,502,685
--------------
AEROSPACE & DEFENSE 2.3%
L-3 Communications Holdings, Inc. 10,786 722,662
Precision Castparts Corp.+ 6,586 395,489
Sequa Corp. -- Class A* 992 51,793
--------------
TOTAL AEROSPACE & DEFENSE 1,169,944
--------------
CONSTRUCTION & ENGINEERING 0.6%
Dycom Industries, Inc.* 4,800 136,272
Granite Construction, Inc. 4,166 99,567
Quanta Services, Inc.* 11,830 71,572
--------------
TOTAL CONSTRUCTION & ENGINEERING 307,411
--------------
ROAD & RAIL 0.6%
Werner Enterprises, Inc. 7,980 154,094
Swift Transportation Co., Inc.*+ 8,048 135,367
--------------
TOTAL ROAD & RAIL 289,461
--------------
See Notes to Financial Statements.
46 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
AIR FREIGHT & COURIERS 0.4%
CNF, Inc. 5,116 $ 209,705
--------------
TOTAL AIR FREIGHT & COURIERS 209,705
--------------
INDUSTRIAL CONGLOMERATES 0.3%
Teleflex, Inc. 4,048 172,040
--------------
TOTAL INDUSTRIAL CONGLOMERATES 172,040
--------------
ELECTRICAL EQUIPMENT 0.3%
Thomas & Betts Corp. 5,848 156,843
--------------
TOTAL ELECTRICAL EQUIPMENT 156,843
--------------
MARINE 0.3%
Alexander & Baldwin, Inc. 4,259 144,550
--------------
TOTAL MARINE 144,550
--------------
BUILDING PRODUCTS 0.3%
York International Corp.+ 4,152 131,162
--------------
TOTAL BUILDING PRODUCTS 131,162
--------------
AIRLINES 0.1%
Alaska Air Group, Inc.* 2,631 65,196
--------------
TOTAL AIRLINES 65,196
--------------
TOTAL INDUSTRIALS 5,771,190
--------------
INFORMATION TECHNOLOGY 9.5%
COMMUNICATIONS EQUIPMENT 2.4%
Harris Corp.+ 6,711 368,702
Polycom, Inc.* 10,010 198,398
Utstarcom, Inc.*+ 11,527 185,700
3Com Corp.*+ 39,767 167,817
Advanced Fibre
Communications, Inc.* 8,920 141,828
CommScope, Inc.*+ 5,499 118,779
Powerwave Technologies, Inc.* 10,558 65,037
--------------
TOTAL COMMUNICATIONS EQUIPMENT 1,246,261
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.1%
Arrow Electronics, Inc.* 11,676 263,644
Tech Data Corp.* 5,755 221,855
Vishay Intertechnology, Inc.*+ 16,749 216,062
Avnet, Inc.*+ 12,222 209,241
KEMET Corp.* 8,735 70,666
Newport Corp.* 4,271 48,988
Plexus Corp.* 4,316 47,649
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,078,105
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.6%
Intersil Corp. -- Class A 15,188 241,945
Fairchild Semiconductor
International, Inc.* 12,020 170,323
RF Micro Devices, Inc.* 18,810 119,255
Integrated Device Technology, Inc.* 10,720 102,162
Credence Systems Corp.*+ 9,641 69,415
Lattice Semiconductor Corp.* 11,483 56,382
Triquint Semiconductor, Inc.* 13,843 53,988
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 813,470
--------------
SOFTWARE 1.2%
Cadence Design Systems, Inc.*+ 27,200 354,688
Sybase, Inc.* 9,610 132,522
Ascential Software Corp.* 5,821 78,409
Advent Software, Inc.*+ 3,310 55,707
--------------
TOTAL SOFTWARE 621,326
--------------
IT CONSULTING & SERVICES 1.2%
CheckFree Corp.*+ 8,759 242,361
BISYS Group, Inc.* 12,236 178,768
Keane, Inc.*+ 6,196 95,171
MPS Group, Inc.* 10,641 89,491
--------------
TOTAL IT CONSULTING & SERVICES 605,791
--------------
COMPUTERS & PERIPHERALS 1.0%
Storage Technology Corp.*+ 11,172 282,205
Imation Corp. 3,518 125,205
McData Corp. -- Class A* 11,956 60,139
Quantum Corp.*+ 18,390 42,481
--------------
TOTAL COMPUTERS & PERIPHERALS 510,030
--------------
TOTAL INFORMATION TECHNOLOGY 4,874,983
--------------
ENERGY 9.1%
ENERGY EQUIPMENT & SERVICES 5.4%
Weatherford International Ltd.*+ 13,502 688,872
ENSCO International, Inc. 15,285 499,361
Cooper Cameron Corp.* 5,578 305,897
National-Oilwell, Inc.* 8,682 285,291
Pride International, Inc.*+ 13,726 271,638
Varco International, Inc.* 9,844 264,016
Tidewater, Inc. 6,092 198,295
Helmerich & Payne, Inc. 5,070 145,458
Hanover Compressor Co.* 7,870 105,851
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,764,679
--------------
OIL & GAS 3.7%
Pioneer Natural Resources Co. 14,557 501,925
Newfield Exploration Co.* 6,246 382,505
Noble Energy, Inc. 5,795 337,501
Pogo Producing Co. 6,493 308,093
Overseas Shipholding Group, Inc. 3,870 192,107
Forest Oil Corp.*+ 5,845 176,051
--------------
TOTAL OIL & GAS 1,898,182
--------------
TOTAL ENERGY 4,662,861
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 47
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
MATERIALS 6.5%
CHEMICALS 3.5%
Cabot Corp. 6,193 $ 238,864
Lubrizol Corp.+ 6,607 228,602
RPM International, Inc. 11,731 207,052
Cytec Industries, Inc. 3,942 192,961
Airgas, Inc. 7,563 182,041
FMC Corp.* 3,605 175,095
Albemarle Corp. 4,162 146,045
Minerals Technologies, Inc. 2,069 121,781
Crompton Corp. 11,588 109,970
Sensient Technologies Corp.+ 4,646 100,540
Ferro Corp. 4,194 91,471
--------------
TOTAL CHEMICALS 1,794,422
--------------
METALS & MINING 1.1%
Peabody Energy Corp. 6,524 388,178
Arch Coal, Inc. 5,575 197,857
--------------
TOTAL METALS & MINING 586,035
--------------
PAPER & FOREST PRODUCTS 0.8%
Bowater, Inc.+ 5,642 215,468
Potlatch Corp.+ 2,941 137,668
Glatfelter 4,468 55,359
--------------
TOTAL PAPER & FOREST PRODUCTS 408,495
--------------
CONTAINERS & PACKAGING 0.7%
Sonoco Products Co. 9,879 261,201
Longview Fibre Co. 5,129 78,217
--------------
TOTAL CONTAINERS & PACKAGING 339,418
--------------
CONSTRUCTION MATERIALS 0.4%
Martin Marietta Materials, Inc. 4,768 215,847
--------------
TOTAL CONSTRUCTION MATERIALS 215,847
--------------
TOTAL MATERIALS 3,344,217
--------------
CONSUMER STAPLES 5.5%
FOOD PRODUCTS 3.4%
Tyson Foods, Inc. -- Class A+ 35,686 571,690
Dean Foods Co.*+ 15,906 477,498
Smithfield Foods, Inc.* 11,122 278,050
J.M. Smucker Co. 5,793 257,267
Lancaster Colony Corp. 3,530 148,843
--------------
TOTAL FOOD PRODUCTS 1,733,348
--------------
BEVERAGES 1.3%
Constellation Brands, Inc. -- Class A*+ 10,818 411,733
PepsiAmericas, Inc. 13,932 266,101
--------------
TOTAL BEVERAGES 677,834
--------------
FOOD & DRUG RETAILING 0.6%
BJ's Wholesale Club, Inc.*+ 7,012 191,708
Ruddick Corp. 4,633 90,992
--------------
TOTAL FOOD & DRUG RETAILING 282,700
--------------
TOBACCO 0.2%
Universal Corp./Richmond VA 2,514 112,225
--------------
TOTAL TOBACCO 112,225
--------------
TOTAL CONSUMER STAPLES 2,806,107
--------------
HEALTH CARE 4.3%
HEALTH CARE PROVIDERS & SERVICES 2.6%
Pacificare Health Systems, Inc.* 8,697 319,180
Health Net, Inc.* 11,079 273,873
Triad Hospitals, Inc.* 7,757 267,151
Universal Health Services, Inc. --
Class B+ 5,770 250,995
Community Health Systems, Inc.* 8,795 234,651
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,345,850
--------------
BIOTECHNOLOGY 1.4%
Millennium Pharmaceuticals, Inc.*+ 30,846 422,899
Invitrogen Corp.* 5,274 290,017
--------------
TOTAL BIOTECHNOLOGY 712,916
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.3%
Steris Corp.* 6,960 152,702
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 152,702
--------------
TOTAL HEALTH CARE 2,211,468
--------------
TELECOMMUNICATION SERVICES 0.9%
WIRELESS TELECOMMUNICATION SERVICES 0.9%
Telephone & Data Systems, Inc. 5,682 478,254
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 478,254
--------------
TOTAL TELECOMMUNICATION SERVICES 478,254
--------------
TOTAL COMMON STOCKS
(Cost $47,454,531) 50,240,886
--------------
See Notes to Financial Statements.
48 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 2,355 $ 2,355
1.71% due 10/01/04 196,801 196,801
1.70% due 10/01/04 196,801 196,801
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $395,957) 395,957
--------------
SECURITIES LENDING COLLATERAL 9.5%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 4,875,792 4,875,792
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,875,792) 4,875,792
--------------
TOTAL INVESTMENTS 108.4%
(Cost $52,726,280) $ 55,512,635
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (8.4)% $ (4,286,251)
==============
NET ASSETS - 100.0% $ 51,226,384
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 49
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 98.1%
FINANCIALS 35.5%
BANKS 11.0%
Bank of America Corp.+ 86,342 $ 3,741,199
Wells Fargo & Co. 35,880 2,139,524
Wachovia Corp.+ 27,802 1,305,304
U.S. Bancorp+ 39,942 1,154,324
Fifth Third Bancorp 12,090 595,070
National City Corp. 14,078 543,692
SunTrust Banks, Inc. 7,560 532,300
BB&T Corp.+ 11,775 467,350
PNC Financial Services Group, Inc. 6,004 324,816
SouthTrust Corp. 7,108 296,119
KeyCorp 8,591 271,476
M&T Bank Corp. 2,532 242,312
Comerica, Inc.+ 3,676 218,171
Marshall & Ilsley Corp.+ 4,690 189,007
AmSouth Bancorp+ 7,493 182,829
Synovus Financial Corp. 6,590 172,329
Huntington Bancshares, Inc. 4,851 120,838
Zions Bancorporation 1,904 116,220
First Horizon National Corp. 2,573 111,565
--------------
TOTAL BANKS 12,724,445
--------------
INSURANCE 8.3%
American International Group, Inc. 55,317 3,761,003
Allstate Corp.+ 14,687 704,829
MetLife, Inc. 15,942 616,158
Prudential Financial, Inc. 10,974 516,217
St. Paul Travelers Cos., Inc. 14,186 468,989
AFLAC, Inc.+ 10,726 420,566
Progressive Corp. 4,647 393,833
Hartford Financial Services
Group, Inc. 6,185 383,037
Chubb Corp.+ 4,010 281,823
ACE Ltd.+ 6,014 240,921
Loews Corp. 3,979 232,772
XL Capital Ltd. 2,976 220,194
Aon Corp. 6,684 192,098
Ambac Financial Group, Inc. 2,348 187,723
MBIA, Inc. 3,028 176,260
Lincoln National Corp. 3,717 174,699
Cincinnati Financial Corp. 3,534 145,672
Jefferson-Pilot Corp. 2,897 143,865
Torchmark Corp. 2,370 126,037
SAFECO Corp.+ 2,694 122,981
UnumProvident Corp.+ 6,319 99,145
--------------
TOTAL INSURANCE 9,608,822
--------------
DIVERSIFIED FINANCIALS 7.2%
Citigroup, Inc. 109,953 4,851,126
J.P. Morgan Chase & Co. 75,651 3,005,614
Regions Financial Corp.+ 9,838 325,244
Principal Financial Group, Inc.+ 6,616 237,978
--------------
TOTAL DIVERSIFIED FINANCIALS 8,419,962
--------------
CAPITAL MARKETS 4.9%
Morgan Stanley 23,368 1,152,042
Merrill Lynch & Co., Inc. 19,972 993,008
Goldman Sachs Group, Inc. 10,296 959,999
Bank of New York Co., Inc. 16,526 482,063
Lehman Brothers Holdings, Inc. 5,760 459,187
State Street Corp. 7,159 305,761
Franklin Resources, Inc. 5,327 297,034
Charles Schwab Corp.+ 29,031 266,795
Mellon Financial Corp. 9,014 249,598
Bear Stearns Cos., Inc.+ 2,218 213,305
Northern Trust Corp. 4,678 190,862
E*Trade Financial Corp.* 7,907 90,298
Janus Capital Group, Inc.+ 5,134 69,874
--------------
TOTAL CAPITAL MARKETS 5,729,826
--------------
THRIFTS & MORTGAGE FINANCE 2.4%
Freddie Mac 14,565 950,221
Washington Mutual, Inc. 18,569 725,676
Countrywide Financial Corp. 11,946 470,553
Golden West Financial Corp. 3,200 355,040
Sovereign Bancorp, Inc.+ 7,316 159,635
MGIC Investment Corp. 2,176 144,813
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,805,938
--------------
CONSUMER FINANCE 1.0%
MBNA Corp. 27,089 682,643
Capital One Financial Corp.+ 5,141 379,920
Providian Financial Corp.*+ 6,177 95,990
--------------
TOTAL CONSUMER FINANCE 1,158,553
--------------
REAL ESTATE 0.7%
Equity Office Properties Trust+ 8,536 232,606
Equity Residential 5,983 185,473
ProLogis 3,848 135,604
Plum Creek Timber (REIT) Co., Inc. 3,858 135,146
Apartment Investment & Management
Co. -- Class A 2,035 70,777
--------------
TOTAL REAL ESTATE 759,606
--------------
TOTAL FINANCIALS 41,207,152
--------------
See Notes to Financial Statements.
50 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
ENERGY 12.9%
OIL & GAS 12.1%
Exxon Mobil Corp. 138,107 $ 6,674,711
ChevronTexaco Corp. 45,248 2,427,103
ConocoPhillips 14,651 1,213,835
Occidental Petroleum Corp. 8,332 466,009
Devon Energy Corp. 5,142 365,133
Anadarko Petroleum Corp. 5,347 354,827
Apache Corp. 6,966 349,066
Burlington Resources, Inc.+ 8,376 341,741
Marathon Oil Corp. 7,343 303,119
Unocal Corp.+ 5,639 242,477
Valero Energy Corp.+ 2,704 216,888
Kerr-McGee Corp. 3,174 181,712
Amerada Hess Corp. 2,004 178,356
EOG Resources, Inc.+ 2,511 165,349
Kinder Morgan, Inc. 2,573 161,636
Williams Cos., Inc. 11,118 134,528
El Paso Corp.+ 13,652 125,462
Sunoco, Inc. 1,691 125,100
Ashland, Inc. 1,547 86,756
--------------
TOTAL OIL & GAS 14,113,808
--------------
ENERGY EQUIPMENT & SERVICES 0.8%
Baker Hughes, Inc.+ 7,129 311,680
Transocean, Inc.*+ 6,825 244,198
Nabors Industries Ltd.* 3,159 149,579
Noble Corp.*+ 2,855 128,332
Rowan Cos., Inc.* 2,228 58,819
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 892,608
--------------
TOTAL ENERGY 15,006,416
--------------
CONSUMER DISCRETIONARY 12.6%
MEDIA 5.7%
Time Warner, Inc.*+ 97,142 1,567,872
Comcast Corp. -- Class A* 47,498 1,341,343
Viacom, Inc. -- Class B 36,855 1,236,854
Walt Disney Co. 43,683 985,052
Gannett Co., Inc. 5,622 470,899
Clear Channel
Communications, Inc.+ 12,524 390,373
Tribune Co.+ 6,788 279,326
Univision Communications, Inc. --
Class A*+ 6,856 216,718
Interpublic Group of Cos., Inc.*+ 8,960 94,886
--------------
TOTAL MEDIA 6,583,323
--------------
HOTELS RESTAURANTS & LEISURE 2.0%
McDonald's Corp. 26,627 746,355
Carnival Corp.+ 13,478 637,375
Marriott International, Inc. --
Class A 4,821 250,499
Starwood Hotels & Resorts
Worldwide, Inc. 4,464 207,219
Hilton Hotels Corp. 8,160 153,734
Harrah's Entertainment, Inc. 2,379 126,040
Wendy's International, Inc. 2,390 80,304
Darden Restaurants, Inc. 3,363 78,425
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 2,279,951
--------------
MULTILINE RETAIL 1.5%
Target Corp. 19,183 868,031
JC Penney Holding Co., Inc.+ 6,103 215,314
Sears Roebuck and Co.+ 4,507 179,604
Federated Department Stores, Inc.+ 3,828 173,906
May Department Stores Co. 6,177 158,317
Nordstrom, Inc. 2,986 114,185
Dillard's, Inc./AR -- Class A 1,752 34,584
Big Lots, Inc.* 2,401 29,364
--------------
TOTAL MULTILINE RETAIL 1,773,305
--------------
AUTOMOBILES 0.9%
Ford Motor Co.+ 38,896 546,489
General Motors Corp.+ 11,999 509,717
--------------
TOTAL AUTOMOBILES 1,056,206
--------------
HOUSEHOLD DURABLES 0.7%
Pulte Homes, Inc.+ 2,693 165,270
Centex Corp. 2,663 134,375
Newell Rubbermaid, Inc. 5,833 116,893
Leggett & Platt, Inc.+ 4,031 113,271
KB Home+ 1,062 89,728
Whirlpool Corp. 1,440 86,530
Stanley Works 1,742 74,087
Snap-On, Inc. 1,256 34,615
--------------
TOTAL HOUSEHOLD DURABLES 814,769
--------------
SPECIALTY RETAIL 0.6%
Limited Brands, Inc.+ 10,014 223,212
Office Depot, Inc.*+ 6,663 100,145
AutoNation, Inc.*+ 5,673 96,895
Tiffany & Co. 3,150 96,831
Toys `R' Us, Inc.* 4,517 80,131
Circuit City Stores, Inc. 4,190 64,275
Boise Cascade Corp. 1,883 62,666
--------------
TOTAL SPECIALTY RETAIL 724,155
--------------
LEISURE EQUIPMENT & PRODUCTS 0.5%
Eastman Kodak Co.+ 6,136 197,702
Mattel, Inc.+ 8,794 159,435
Brunswick Corp. 2,044 93,533
Hasbro, Inc.+ 3,706 69,673
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 520,343
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 51
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
AUTO COMPONENTS 0.3%
Johnson Controls, Inc. 4,018 $ 228,262
Dana Corp. 3,169 56,060
Goodyear Tire & Rubber Co.*+ 3,696 39,695
Cooper Tire & Rubber Co. 1,680 33,886
Visteon Corp.+ 2,715 21,693
--------------
TOTAL AUTO COMPONENTS 379,596
--------------
TEXTILES & APPAREL 0.3%
VF Corp. 2,359 116,653
Jones Apparel Group, Inc. 2,683 96,051
Liz Claiborne, Inc. 2,269 85,587
Reebok International Ltd. 1,266 46,487
--------------
TOTAL TEXTILES & APPAREL 344,778
--------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 3,686 141,469
--------------
TOTAL DISTRIBUTORS 141,469
--------------
TOTAL CONSUMER DISCRETIONARY 14,617,895
--------------
INDUSTRIALS 8.6%
AEROSPACE & DEFENSE 2.1%
Honeywell International, Inc. 18,219 653,333
Lockheed Martin Corp. 9,420 525,448
General Dynamics Corp. 4,292 438,213
Northrop Grumman Corp.+ 7,656 408,294
Raytheon Co. 9,609 364,950
Goodrich Corp. 2,521 79,059
--------------
TOTAL AEROSPACE & DEFENSE 2,469,297
--------------
MACHINERY 2.0%
Illinois Tool Works, Inc.+ 6,432 599,269
Deere & Co. 5,314 343,019
Ingersoll-Rand Co. -- Class A 3,776 256,655
Paccar, Inc.+ 3,696 255,467
Eaton Corp. 3,180 201,644
Dover Corp. 4,334 168,462
ITT Industries, Inc. 2,025 161,980
Parker Hannifin Corp. 2,531 148,975
Cummins, Inc. 1,011 74,703
Pall Corp. 2,683 65,680
Crane Co. 1,266 36,613
--------------
TOTAL MACHINERY 2,312,467
--------------
INDUSTRIAL CONGLOMERATES 1.3%
Tyco International Ltd.+ 42,681 1,308,599
Textron, Inc. 2,976 191,268
--------------
TOTAL INDUSTRIAL CONGLOMERATES 1,499,867
--------------
COMMERCIAL SERVICES & SUPPLIES 0.9%
Cendant Corp.+ 22,389 483,602
Waste Management, Inc. 12,335 337,239
RR Donnelley & Sons Co. 4,647 145,544
Allied Waste Industries, Inc.*+ 6,795 60,136
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,026,521
--------------
ROAD & RAIL 0.9%
Union Pacific Corp. 5,508 322,769
Burlington Northern Santa Fe Corp. 7,958 304,871
Norfolk Southern Corp.+ 8,333 247,824
CSX Corp.+ 4,527 150,296
--------------
TOTAL ROAD & RAIL 1,025,760
--------------
AIR FREIGHT & COURIERS 0.5%
FedEx Corp.+ 6,339 543,189
Ryder System, Inc.+ 1,316 61,905
--------------
TOTAL AIR FREIGHT & COURIERS 605,094
--------------
ELECTRICAL EQUIPMENT 0.3%
Rockwell Automation, Inc.+ 3,879 150,117
Cooper Industries Ltd. -- Class A 2,025 119,475
American Power Conversion Corp.+ 4,303 74,829
Power-One, Inc.* 1,852 12,001
--------------
TOTAL ELECTRICAL EQUIPMENT 356,422
--------------
BUILDING PRODUCTS 0.3%
Masco Corp.+ 9,223 318,470
--------------
TOTAL BUILDING PRODUCTS 318,470
--------------
AIRLINES 0.2%
Southwest Airlines Co. 16,739 227,985
--------------
TOTAL AIRLINES 227,985
--------------
TRADING COMPANIES & DISTRIBUTORS 0.1%
W.W. Grainger, Inc. 2,014 116,107
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 116,107
--------------
CONSTRUCTION & ENGINEERING 0.0%
Fluor Corp.+ 1,752 77,999
--------------
TOTAL CONSTRUCTION & ENGINEERING 77,999
--------------
TOTAL INDUSTRIALS 10,035,989
--------------
TELECOMMUNICATION SERVICES 6.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 5.7%
Verizon Communications, Inc. 58,794 2,315,308
SBC Communications, Inc.+ 70,410 1,827,139
BellSouth Corp. 38,921 1,055,538
Sprint Corp.+ 30,859 621,192
Alltel Corp.+ 6,523 358,178
AT&T Corp.+ 16,870 241,578
CenturyTel, Inc. 2,888 98,885
Citizens Communications Co.+ 7,063 94,574
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 6,612,392
--------------
See Notes to Financial Statements.
52 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
WIRELESS TELECOMMUNICATION SERVICES 0.7%
AT&T Wireless Services, Inc.* 57,932 $ 856,235
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 856,235
--------------
TOTAL TELECOMMUNICATION SERVICES 7,468,627
--------------
INFORMATION TECHNOLOGY 6.3%
COMPUTERS & PERIPHERALS 2.2%
Hewlett-Packard Co.+ 64,170 1,203,187
EMC Corp./MA* 51,020 588,771
Apple Computer, Inc.* 8,236 319,145
Sun Microsystems, Inc.* 70,628 285,337
NCR Corp.* 2,045 101,412
QLogic Corp.*+ 2,030 60,108
Gateway, Inc.*+ 7,869 38,952
--------------
TOTAL COMPUTERS & PERIPHERALS 2,596,912
--------------
COMMUNICATIONS EQUIPMENT 1.5%
Motorola, Inc. 50,169 905,049
Corning, Inc.*+ 29,594 327,901
JDS Uniphase Corp.*+ 30,572 103,028
Scientific-Atlanta, Inc. 3,300 85,536
Tellabs, Inc.*+ 8,840 81,240
Comverse Technology, Inc.*+ 4,161 78,352
Andrew Corp.* 3,460 42,350
ADC Telecommunications, Inc.* 17,194 31,121
CIENA Corp.* 12,133 24,023
--------------
TOTAL COMMUNICATIONS EQUIPMENT 1,678,600
--------------
IT CONSULTING & SERVICES 0.9%
Electronic Data Systems Corp. 10,830 209,994
Computer Sciences Corp.* 4,000 188,400
Affiliated Computer Services, Inc. --
Class A*+ 2,766 153,983
SunGard Data Systems, Inc.* 6,166 146,566
Fiserv, Inc.* 4,161 145,052
Unisys Corp.*+ 7,140 73,685
Sabre Holdings Corp.+ 2,888 70,842
Convergys Corp.* 3,018 40,532
--------------
TOTAL IT CONSULTING & SERVICES 1,029,054
--------------
SOFTWARE 0.8%
Computer Associates
International, Inc.+ 12,474 328,066
Veritas Software Corp.* 9,170 163,226
PeopleSoft, Inc.* 7,809 155,009
Siebel Systems, Inc.* 10,772 81,221
BMC Software, Inc.* 4,700 74,307
Novell, Inc.*+ 8,190 51,679
Compuware Corp.* 8,182 42,137
--------------
TOTAL SOFTWARE 895,645
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 0.4%
Micron Technology, Inc.*+ 12,993 156,306
Advanced Micro Devices, Inc.*+ 7,513 97,669
Novellus Systems, Inc.* 3,060 81,365
Nvidia Corp.* 3,513 51,009
LSI Logic Corp.*+ 8,150 35,126
Applied Micro Circuits Corp.*+ 6,652 20,821
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 442,296
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Molex, Inc. 4,010 119,578
Jabil Circuit, Inc.*+ 4,303 98,969
Sanmina-SCI Corp.* 11,027 77,740
Tektronix, Inc. 2,039 67,797
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 364,084
--------------
OFFICE ELECTRONICS 0.2%
Xerox Corp.*+ 17,821 250,920
--------------
TOTAL OFFICE ELECTRONICS 250,920
--------------
TOTAL INFORMATION TECHNOLOGY 7,257,511
--------------
UTILITIES 5.4%
ELECTRIC UTILITIES 3.8%
Exelon Corp. 14,034 514,908
Southern Co.+ 15,684 470,206
TXU Corp. 6,283 301,081
Entergy Corp. 4,861 294,625
FirstEnergy Corp.+ 7,008 287,889
FPL Group, Inc.+ 3,969 271,162
American Electric Power Co., Inc.+ 8,365 267,346
PG&E Corp.* 8,560 260,224
Progress Energy, Inc.+ 5,195 219,956
Consolidated Edison, Inc.+ 5,154 216,674
Ameren Corp.+ 4,140 191,061
PPL Corp. 3,997 188,579
Edison International+ 6,967 184,695
DTE Energy Co.+ 3,674 155,006
Cinergy Corp.+ 3,827 151,549
Xcel Energy, Inc.+ 8,496 147,151
Pinnacle West Capital Corp. 2,014 83,581
CenterPoint Energy, Inc.+ 6,512 67,464
TECO Energy, Inc. 4,237 57,327
Allegheny Energy, Inc.*+ 2,694 42,996
--------------
TOTAL ELECTRIC UTILITIES 4,373,480
--------------
MULTI-UTILITIES 1.3%
Duke Energy Corp.+ 19,902 455,557
Dominion Resources, Inc./VA+ 6,976 455,184
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 53
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Public Service Enterprise
Group, Inc.+ 5,012 $ 213,511
Sempra Energy+ 4,950 179,140
Constellation Energy Group, Inc.+ 3,734 148,762
Dynegy, Inc. -- Class A*+ 8,020 40,020
CMS Energy Corp.* 3,392 32,292
Calpine Corp.*+ 9,424 27,330
--------------
TOTAL MULTI-UTILITIES 1,551,796
--------------
GAS UTILITIES 0.3%
KeySpan Corp.+ 3,362 131,791
NiSource, Inc. 5,640 118,496
Peoples Energy Corp. 840 35,011
Nicor, Inc. 942 34,571
--------------
TOTAL GAS UTILITIES 319,869
--------------
TOTAL UTILITIES 6,245,145
--------------
HEALTH CARE 4.4%
HEALTH CARE PROVIDERS & SERVICES 2.5%
HCA, Inc. 10,232 390,351
WellPoint Health Networks, Inc.* 3,320 348,899
Aetna, Inc. 3,290 328,770
Caremark Rx, Inc.*+ 9,888 317,108
Anthem, Inc.*+ 2,987 260,616
CIGNA Corp. 2,907 202,414
Quest Diagnostics, Inc. 2,208 194,790
Medco Health Solutions, Inc.* 5,802 179,282
McKesson Corp.+ 6,188 158,722
AmerisourceBergen Corp.+ 2,480 133,201
Tenet Healthcare Corp.* 9,863 106,422
Health Management Associates, Inc. --
Class A 5,164 105,500
Humana, Inc.* 3,372 67,372
Manor Care, Inc. 1,894 56,744
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,850,191
--------------
BIOTECHNOLOGY 0.9%
Biogen Idec, Inc.*+ 7,190 439,813
Genzyme Corp.*+ 4,829 262,746
Chiron Corp.*+ 4,010 177,242
Medimmune, Inc.*+ 5,316 125,989
Applera Corp. - Applied Biosystems
Group 4,315 81,424
--------------
TOTAL BIOTECHNOLOGY 1,087,214
--------------
PHARMACEUTICALS 0.6%
Schering-Plough Corp.+ 31,250 595,625
Watson Pharmaceuticals, Inc.* 2,349 69,201
King Pharmaceuticals, Inc.*+ 5,154 61,539
--------------
TOTAL PHARMACEUTICALS 726,365
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.4%
Fisher Scientific International, Inc.*+ 2,391 139,467
Hospira, Inc.* 3,320 101,592
Thermo Electron Corp.* 3,513 94,921
Bausch & Lomb, Inc.+ 1,214 80,671
PerkinElmer, Inc. 2,704 46,563
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 463,214
--------------
TOTAL HEALTH CARE 5,126,984
--------------
MATERIALS 3.5%
METALS & MINING 1.3%
Alcoa, Inc. 18,510 621,751
Newmont Mining Corp.+ 9,374 426,798
Phelps Dodge Corp.+ 2,034 187,189
Nucor Corp.+ 1,721 157,248
United States Steel Corp. 2,390 89,912
Worthington Industries, Inc. 1,883 40,202
--------------
TOTAL METALS & MINING 1,523,100
--------------
PAPER & FOREST PRODUCTS 1.0%
International Paper Co.+ 10,328 417,354
Weyerhaeuser Co. 5,052 335,857
Georgia-Pacific Corp.+ 5,468 196,574
MeadWestvaco Corp. 4,313 137,585
Louisiana-Pacific Corp.+ 2,348 60,931
--------------
TOTAL PAPER & FOREST PRODUCTS 1,148,301
--------------
CHEMICALS 1.0%
Air Products & Chemicals, Inc. 4,830 262,655
PPG Industries, Inc. 3,655 223,978
Rohm & Haas Co.+ 4,809 206,643
Monsanto Co. 5,660 206,137
Eastman Chemical Co. 1,701 80,883
Engelhard Corp. 2,673 75,780
Great Lakes Chemical Corp. 1,093 27,981
--------------
TOTAL CHEMICALS 1,084,057
--------------
CONTAINERS & PACKAGING 0.1%
Temple-Inland, Inc. 1,234 82,863
Bemis Co. 2,238 59,486
--------------
TOTAL CONTAINERS & PACKAGING 142,349
--------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co. 2,197 111,937
--------------
TOTAL CONSTRUCTION MATERIALS 111,937
--------------
TOTAL MATERIALS 4,009,744
--------------
CONSUMER STAPLES 2.5%
FOOD & DRUG RETAILING 1.2%
Costco Wholesale Corp.+ 9,801 407,330
CVS Corp. 8,484 357,431
Kroger Co.*+ 15,728 244,099
See Notes to Financial Statements.
54 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Albertson's, Inc.+ 7,827 $ 187,300
Safeway, Inc.*+ 9,497 183,387
Supervalu, Inc. 2,855 78,655
Winn-Dixie Stores, Inc.+ 3,117 9,631
--------------
TOTAL FOOD & DRUG RETAILING 1,467,833
--------------
FOOD PRODUCTS 0.8%
General Mills, Inc. 8,119 364,543
ConAgra Foods, Inc.+ 11,193 287,772
Archer-Daniels-Midland Co. 13,842 235,037
--------------
TOTAL FOOD PRODUCTS 887,352
--------------
BEVERAGES 0.2%
Coca-Cola Enterprises, Inc. 10,001 189,019
Adolph Coors Co. -- Class B 840 57,053
--------------
TOTAL BEVERAGES 246,072
--------------
TOBACCO 0.2%
Reynolds American, Inc.+ 3,178 216,231
--------------
TOTAL TOBACCO 216,231
--------------
PERSONAL PRODUCTS 0.1%
Alberto-Culver Co. -- Class B 2,004 87,134
--------------
TOTAL PERSONAL PRODUCTS 87,134
--------------
TOTAL CONSUMER STAPLES 2,904,622
--------------
TOTAL COMMON STOCKS
(Cost $109,576,330) 113,880,085
--------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 1.2%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 7,963 7,963
1.71% due 10/01/04 665,409 665,409
1.70% due 10/01/04 665,409 665,409
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,338,781) 1,338,781
--------------
SECURITIES LENDING COLLATERAL 13.4%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 15,604,006 15,604,006
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $15,604,006) 15,604,006
--------------
TOTAL INVESTMENTS 112.7%
(Cost $126,519,117) $ 130,822,872
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.7)% $ (14,700,554)
==============
NET ASSETS - 100.0% $ 116,122,318
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 55
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 98.0%
HEALTH CARE 19.0%
HEALTH CARE EQUIPMENT & SUPPLIES 9.7%
Cooper Cos., Inc.+ 13,213 $ 905,751
Respironics, Inc.* 14,173 757,405
Idexx Laboratories, Inc.* 13,951 707,874
ResMed, Inc.*+ 13,749 654,590
Mentor Corp.+ 17,153 577,713
Advanced Medical Optics, Inc.*+ 14,452 571,866
American Medical Systems
Holdings, Inc.* 13,648 495,013
Diagnostic Products Corp. 11,930 487,579
Sybron Dental Specialties, Inc.* 15,769 468,182
Integra LifeSciences
Holdings Corp.*+ 11,628 373,375
PolyMedica Corp. 11,115 342,342
Haemonetics Corp./MA* 10,200 334,968
Biosite, Inc.*+ 6,461 316,331
Immucor, Inc.* 12,097 299,401
Arthocare Corp.* 8,860 259,509
Cyberonics, Inc.*+ 9,719 198,851
SurModics, Inc.* 7,154 169,907
Merit Medical Systems Inc.* 10,736 162,221
Hologic, Inc.* 8,270 159,363
DJ Orthopedics, Inc.* 8,849 156,185
Wilson Greatbatch
Technologies, Inc.* 8,683 155,339
ICU Medical, Inc.* 5,658 147,334
Kensey Nash Corp.* 4,760 124,664
Possis Medical, Inc.* 7,399 115,868
BioLase Technology, Inc.+ 9,909 80,857
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 9,022,488
--------------
HEALTH CARE PROVIDERS & SERVICES 6.1%
Pharmaceutical Product
Development, Inc.* 22,956 826,416
Cerner Corp.*+ 14,675 634,840
Pediatrix Medical Group, Inc.* 9,755 535,062
Sierra Health Services, Inc.*+ 10,970 525,792
Accredo Health, Inc.* 19,698 464,282
United Surgical Partners
International, Inc.* 11,528 395,987
American Healthways, Inc.*+ 13,281 386,610
Priority Healthcare Corp. -- Class B* 17,710 356,856
Centene Corp.* 8,247 351,157
Dendrite International, Inc.* 16,897 272,380
Odyssey HealthCare, Inc.* 14,854 263,659
AmSurg Corp.* 12,287 260,239
NDCHealth Corp.+ 14,620 234,651
LabOne, Inc.* 6,953 203,236
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 5,711,167
--------------
PHARMACEUTICALS 2.1%
Medicis Pharmaceutical Corp. --
Class A+ 23,068 900,575
MGI Pharma, Inc.* 28,704 766,110
Noven Pharmaceuticals, Inc.* 9,519 198,376
Bradley Pharmaceuticals, Inc.*+ 6,350 129,222
--------------
TOTAL PHARMACEUTICALS 1,994,283
--------------
BIOTECHNOLOGY 1.1%
Techne Corp.* 16,718 638,293
Regeneron Pharmaceuticals, Inc.* 22,633 196,455
Enzo Biochem, Inc.* 12,511 187,665
--------------
TOTAL BIOTECHNOLOGY 1,022,413
--------------
TOTAL HEALTH CARE 17,750,351
--------------
CONSUMER DISCRETIONARY 18.8%
HOTELS RESTAURANTS & LEISURE 4.9%
Sonic Corp.* 24,228 620,964
CEC Entertainment, Inc.* 14,911 547,979
P.F. Chang's China Bistro, Inc.*+ 10,490 508,660
Argosy Gaming Co.* 11,919 467,225
Panera Bread Co. -- Class A*+ 12,265 460,428
Rare Hospitality International, Inc.* 13,793 367,583
Shuffle Master, Inc.*+ 9,375 351,188
WMS Industries, Inc.*+ 12,254 314,805
Triarc Cos. -- Class B 26,047 298,759
Papa John's International, Inc.* 6,787 208,225
Steak N Shake Co.* 11,093 189,468
Multimedia Games, Inc.* 11,383 176,437
Bally Total Fitness Holding Corp.* 13,806 50,254
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 4,561,975
--------------
SPECIALTY RETAIL 4.0%
Tractor Supply Co.* 15,491 487,037
Guitar Center, Inc.*+ 10,321 446,899
Aaron Rents, Inc. 20,144 438,333
Electronics Boutique
Holdings Corp.*+ 9,598 327,292
HOT Topic, Inc.*+ 18,917 322,346
Cost Plus, Inc.*+ 8,905 315,059
Select Comfort Corp.* 14,909 271,344
Children's Place Retail Stores, Inc.* 10,959 262,030
Stein Mart, Inc.* 17,130 260,719
Christopher & Banks Corp. 14,856 237,844
See Notes to Financial Statements.
56 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Genesco, Inc.*+ 8,873 $ 208,959
Hibbett Sporting Goods, Inc.* 9,530 195,270
--------------
TOTAL SPECIALTY RETAIL 3,773,132
--------------
TEXTILES & APPAREL 2.7%
Fossil, Inc.*+ 28,726 888,782
Quiksilver, Inc.*+ 23,068 586,389
Wolverine World Wide, Inc.+ 15,827 398,840
K-Swiss, Inc. -- Class A+ 14,175 272,869
Oxford Industries, Inc. 6,674 248,607
OshKosh B'Gosh, Inc. -- Class A 4,721 95,364
--------------
TOTAL TEXTILES & APPAREL 2,490,851
--------------
HOUSEHOLD DURABLES 2.5%
NVR, Inc.* 2,689 1,481,639
Ethan Allen Interiors, Inc.+ 15,099 524,690
Champion Enterprises, Inc.* 28,904 297,422
--------------
TOTAL HOUSEHOLD DURABLES 2,303,751
--------------
LEISURE EQUIPMENT & PRODUCTS 2.0%
Polaris Industries, Inc. 17,310 966,244
SCP Pool Corp. 21,440 573,306
Arctic Cat, Inc. 8,371 217,227
Sturm Ruger & Co., Inc. 10,870 97,939
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 1,854,716
--------------
AUTOMOBILES 1.1%
Winnebago Industries, Inc. 13,694 474,360
Fleetwood Enterprises, Inc.*+ 22,506 341,641
Monaco Coach Corp. 11,896 257,549
--------------
TOTAL AUTOMOBILES 1,073,550
--------------
MEDIA 1.0%
Arbitron, Inc.* 12,633 462,494
Advo, Inc. 12,409 383,934
Thomas Nelson, Inc. 5,892 115,189
--------------
TOTAL MEDIA 961,617
--------------
MULTILINE RETAIL 0.3%
Fred's, Inc. 15,903 285,618
--------------
TOTAL MULTILINE RETAIL 285,618
--------------
INTERNET & CATALOG RETAIL 0.2%
J. Jill Group, Inc.* 8,191 162,591
--------------
TOTAL INTERNET & CATALOG RETAIL 162,591
--------------
AUTO COMPONENTS 0.1%
Midas, Inc.* 6,316 102,319
--------------
TOTAL AUTO COMPONENTS 102,319
--------------
TOTAL CONSUMER DISCRETIONARY 17,570,120
--------------
INFORMATION TECHNOLOGY 18.5%
SOFTWARE 5.2%
Factset Research Systems, Inc.+ 12,644 609,441
Take-Two Interactive Software, Inc.*+ 18,225 598,691
Kronos, Inc./MA* 12,756 564,963
Hyperion Solutions Corp.*+ 15,869 539,387
Micros Systems, Inc.* 7,567 378,880
Ansys, Inc.* 6,394 317,974
Serena Software, Inc.*+ 18,024 301,542
Manhattan Associates, Inc.* 12,176 297,338
Progress Software Corp.* 14,731 293,147
Filenet Corp.* 15,948 278,452
Sonic Solutions, Inc.* 9,538 155,660
Talx Corp. 5,535 127,803
Catapult Communications Corp.* 5,812 109,498
MRO Software, Inc.* 10,233 102,330
MapInfo Corp.* 8,236 88,949
Concord Communications, Inc.* 7,421 66,232
--------------
TOTAL SOFTWARE 4,830,287
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 5.1%
Flir Systems, Inc.*+ 13,715 802,328
Trimble Navigation Ltd.*+ 20,768 656,269
Cognex Corp. 18,703 490,019
Dionex Corp.* 8,604 470,639
Scansource, Inc.* 5,189 331,058
Littelfuse, Inc.* 9,129 315,224
Global Imaging Systems, Inc.* 9,319 289,635
Rogers Corp.* 6,752 286,892
Veeco Instruments, Inc.* 12,153 254,848
Daktronics, Inc.* 7,734 189,096
BEI Technologies, Inc. 5,960 163,304
Itron, Inc.* 8,471 147,819
Photon Dynamics, Inc.* 6,774 137,512
X-Rite, Inc. 8,448 123,087
Keithley Instruments, Inc. 6,551 114,315
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 4,772,045
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.6%
Varian Semiconductor Equipment
Associates, Inc.* 14,787 456,918
Cymer, Inc.*+ 14,887 426,661
Microsemi Corp.* 24,150 340,515
Axcelis Technologies, Inc.*+ 40,522 335,522
FEI Co.* 13,526 267,274
ATMI, Inc.* 12,699 260,075
Brooks Automation, Inc.* 18,057 255,506
Power Integrations, Inc.*+ 12,499 255,355
DSP Group, Inc.* 11,552 243,170
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 57
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Helix Technology Corp. 10,702 $ 145,494
Advanced Energy Industries, Inc.* 13,302 123,576
Kulicke & Soffa Industries, Inc.* 20,701 116,961
Kopin Corp.* 28,425 115,690
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 3,342,717
--------------
INTERNET SOFTWARE & SERVICES 1.6%
Websense, Inc.* 9,419 392,490
WebEx Communications, Inc.* 17,945 391,560
j2 Global Communications, Inc.* 9,464 298,968
FindWhat.com*+ 12,209 228,674
Netegrity, Inc.* 15,523 116,578
Zix Corp.*+ 13,001 59,544
--------------
TOTAL INTERNET SOFTWARE & SERVICES 1,487,814
--------------
IT CONSULTING & SERVICES 1.2%
Global Payments, Inc.+ 15,523 831,257
Startek, Inc. 5,893 184,804
Carreker Corp.* 9,933 75,590
Intrado, Inc.* 7,008 70,851
--------------
TOTAL IT CONSULTING & SERVICES 1,162,502
--------------
COMPUTERS & PERIPHERALS 1.0%
Avid Technology, Inc.* 13,606 637,713
Synaptics, Inc.* 10,124 204,100
SBS Technologies, Inc.* 6,172 75,299
--------------
TOTAL COMPUTERS & PERIPHERALS 917,112
--------------
COMMUNICATIONS EQUIPMENT 0.8%
Inter-Tel, Inc. 10,412 225,107
ViaSat, Inc.* 10,958 220,256
Harmonic, Inc.* 29,306 194,885
Bel Fuse, Inc. -- Class B 4,620 152,830
--------------
TOTAL COMMUNICATIONS EQUIPMENT 793,078
--------------
TOTAL INFORMATION TECHNOLOGY 17,305,555
--------------
INDUSTRIALS 17.1%
MACHINERY 5.5%
Briggs & Stratton Corp.+ 10,417 845,860
Oshkosh Truck Corp. 14,263 813,847
IDEX Corp. 20,456 694,686
Toro Co.+ 9,310 635,873
Clarcor, Inc. 10,345 493,146
CUNO, Inc.* 6,930 400,207
Manitowoc Co., Inc. 10,826 383,890
Wabash National Corp.* 13,704 376,449
Kaydon Corp.+ 11,550 332,294
Lindsay Manufacturing Co. 4,721 126,664
Milacron, Inc.* 14,489 45,206
--------------
TOTAL MACHINERY 5,148,122
--------------
COMMERCIAL SERVICES & SUPPLIES 3.0%
Brady Corp. -- Class A 9,609 468,631
John H. Harland Co. 11,239 352,343
Watson Wyatt & Co., Holdings 13,112 344,846
Tetra Tech, Inc.*+ 22,789 288,737
Labor Ready, Inc.* 16,974 237,976
Heidrick & Struggles
International, Inc.* 7,867 226,727
Imagistics International, Inc.* 6,674 224,246
Coinstar, Inc.*+ 8,771 204,364
Pre-Paid Legal Services, Inc.* 6,246 160,397
Administaff, Inc.* 10,703 125,225
Memberworks, Inc.*+ 4,363 114,485
CPI Corp. 3,248 43,036
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,791,013
--------------
ELECTRICAL EQUIPMENT 2.3%
Roper Industries, Inc. 14,999 861,842
Acuity Brands, Inc. 17,232 409,605
Baldor Electric Co. 13,359 316,074
Intermagnetics General Corp.* 10,612 245,668
Vicor Corp. 17,097 172,851
Artesyn Technologies, Inc.* 15,948 159,161
--------------
TOTAL ELECTRICAL EQUIPMENT 2,165,201
--------------
AEROSPACE & DEFENSE 2.2%
Armor Holdings, Inc.* 13,292 553,080
Engineered Support Systems, Inc.+ 10,590 483,328
Teledyne Technologies, Inc.* 13,168 329,727
Invision Technologies, Inc.* 7,264 326,807
Mercury Computer Systems, Inc.* 8,649 232,831
Applied Signal Technology, Inc. 4,564 146,002
--------------
TOTAL AEROSPACE & DEFENSE 2,071,775
--------------
ROAD & RAIL 1.9%
Landstar System, Inc.* 12,297 721,588
Heartland Express, Inc. 30,489 562,522
Knight Transportation, Inc.* 22,879 490,068
--------------
TOTAL ROAD & RAIL 1,774,178
--------------
BUILDING PRODUCTS 1.2%
Simpson Manufacturing Co., Inc. 9,710 613,672
Griffon Corp.*+ 11,930 251,723
ElkCorp 8,024 222,746
--------------
TOTAL BUILDING PRODUCTS 1,088,141
--------------
AIR FREIGHT & COURIERS 1.0%
EGL, Inc.*+ 18,180 550,127
Forward Air Corp.*+ 8,816 352,816
--------------
TOTAL AIR FREIGHT & COURIERS 902,943
--------------
TOTAL INDUSTRIALS 15,941,373
--------------
See Notes to Financial Statements.
58 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
FINANCIALS 9.9%
BANKS 6.3%
First Bancorp Puerto Rico 16,327 $ 788,594
UCBH Holdings, Inc. 18,381 718,146
East-West Bancorp, Inc. 20,378 684,497
Hudson United Bancorp 18,225 671,591
First Midwest Bancorp, Inc./IL 18,883 652,597
Southwest Bancorp of Texas, Inc. 28,022 564,363
Community First Bankshares, Inc. 15,010 481,221
Wintrust Financial Corp. 8,337 477,543
TrustCo Bank Corp./NY 30,155 386,587
PrivateBancorp, Inc. 8,302 223,822
Gold Banc Corp., Inc. 16,294 219,806
--------------
TOTAL BANKS 5,868,767
--------------
THRIFTS & MORTGAGE FINANCE 2.3%
New Century Financial Corp. 19,338 1,164,534
Fremont General Corp. 31,337 725,452
Dime Community Bancshares 15,100 253,680
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,143,666
--------------
REAL ESTATE 0.7%
Essex Property Trust, Inc. 9,408 675,965
--------------
TOTAL REAL ESTATE 675,965
--------------
INSURANCE 0.5%
Hilb Rogal & Hobbs Co. 14,531 526,313
--------------
TOTAL INSURANCE 526,313
--------------
CONSUMER FINANCE 0.1%
Rewards Network, Inc.* 10,144 67,660
--------------
TOTAL CONSUMER FINANCE 67,660
--------------
TOTAL FINANCIALS 9,282,371
--------------
ENERGY 7.3%
OIL & GAS 3.9%
Patina Oil & Gas Corp. 28,626 846,471
Southwestern Energy Co.*+ 14,642 614,817
Cabot Oil & Gas Corp.+ 13,458 604,264
Vintage Petroleum, Inc. 26,471 531,273
St. Mary Land & Exploration Co. 11,618 462,513
Petroleum Development Corp.* 6,554 287,196
Frontier Oil Corp. 10,892 257,160
--------------
TOTAL OIL & GAS 3,603,694
--------------
ENERGY EQUIPMENT & SERVICES 3.4%
Unit Corp.*+ 18,604 652,628
Cal Dive International, Inc.* 15,501 552,146
Maverick Tube Corp.* 17,276 532,273
CARBO Ceramics, Inc. 6,507 469,415
Hydril* 9,307 399,736
Input/Output, Inc.*+ 30,886 318,435
Tetra Technologies, Inc.* 9,084 282,058
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 3,206,691
--------------
TOTAL ENERGY 6,810,385
--------------
MATERIALS 4.3%
METALS & MINING 1.6%
Massey Energy Co. 30,779 890,436
Century Aluminum Co.* 12,887 357,357
Amcol International Corp. 11,985 229,153
--------------
TOTAL METALS & MINING 1,476,946
--------------
CHEMICALS 1.6%
Georgia Gulf Corp. 13,481 601,118
Headwaters, Inc.*+ 13,604 419,819
MacDermid, Inc. 12,298 356,150
Omnova Solutions, Inc.* 16,316 98,386
--------------
TOTAL CHEMICALS 1,475,473
--------------
CONSTRUCTION MATERIALS 0.9%
Florida Rock Industries, Inc. 17,577 861,097
--------------
TOTAL CONSTRUCTION MATERIALS 861,097
--------------
PAPER & FOREST PRODUCTS 0.2%
Deltic Timber Corp.+ 4,999 198,910
--------------
TOTAL PAPER & FOREST PRODUCTS 198,910
--------------
TOTAL MATERIALS 4,012,426
--------------
CONSUMER STAPLES 2.7%
FOOD PRODUCTS 0.9%
Delta & Pine Land Co. 15,613 417,648
Sanderson Farms, Inc. 8,158 272,885
Lance, Inc. 12,020 194,123
--------------
TOTAL FOOD PRODUCTS 884,656
--------------
PERSONAL PRODUCTS 0.7%
NBTY, Inc.* 27,109 584,470
Natures Sunshine Products, Inc. 6,094 92,446
--------------
TOTAL PERSONAL PRODUCTS 676,916
--------------
HOUSEHOLD PRODUCTS 0.6%
Rayovac Corp.* 14,084 371,113
WD-40 Co. 6,863 196,282
--------------
TOTAL HOUSEHOLD PRODUCTS 567,395
--------------
FOOD & DRUG RETAILING 0.5%
United Natural Foods, Inc.* 16,259 432,489
--------------
TOTAL FOOD & DRUG RETAILING 432,489
--------------
TOTAL CONSUMER STAPLES 2,561,456
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 59
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
TELECOMMUNICATION SERVICES 0.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.4%
Commonwealth Telephone
Enterprises, Inc.* 8,627 $ 375,706
------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 375,706
------------
TOTAL TELECOMMUNICATION SERVICES 375,706
------------
TOTAL COMMON STOCKS
(Cost $88,594,363) 91,609,743
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 4,343 4,343
1.71% due 10/01/04 362,911 362,911
1.70% due 10/01/04 362,911 362,911
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $730,165) 730,165
------------
SECURITIES LENDING COLLATERAL 6.2%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 5,820,355 5,820,355
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,820,355) 5,820,355
------------
TOTAL INVESTMENTS 105.0%
(Cost $95,144,883) $ 98,160,263
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (5.0)% $ (4,694,203)
============
NET ASSETS - 100.0% $ 93,466,060
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
See Notes to Financial Statements.
60 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 97.4%
CONSUMER DISCRETIONARY 21.9%
SPECIALTY RETAIL 8.5%
Williams-Sonoma, Inc.*+ 13,861 $ 520,481
Petsmart, Inc.+ 17,418 494,497
Michaels Stores, Inc. 8,129 481,318
Ross Stores, Inc. 17,675 414,302
Chico's FAS, Inc.*+ 10,723 366,727
Abercrombie & Fitch Co. -- Class A+ 11,283 355,414
Urban Outfitters, Inc.*+ 9,593 329,999
American Eagle Outfitters, Inc.+ 8,579 316,136
Claire's Stores, Inc. 11,848 296,674
CarMax, Inc.* 12,470 268,729
O'Reilly Automotive, Inc.* 6,621 253,518
Rent-A-Center, Inc.* 9,446 244,274
Regis Corp. 5,329 214,332
Pacific Sunwear of California, Inc.* 8,823 185,724
Aeropostale, Inc.* 6,717 175,985
--------------
TOTAL SPECIALTY RETAIL 4,918,110
--------------
HOTELS RESTAURANTS & LEISURE 5.3%
Mandalay Resort Group 8,122 557,575
Outback Steakhouse, Inc. 8,773 364,343
GTECH Holdings Corp. 14,152 358,329
Brinker International, Inc.*+ 10,766 335,361
International Speedway Corp. --
Class A 6,327 315,717
Boyd Gaming Corp. 10,375 292,056
Cheesecake Factory, Inc.*+ 6,185 268,429
Applebee's International, Inc. 9,773 247,062
Ruby Tuesday, Inc.+ 7,824 218,055
Krispy Kreme Doughnuts, Inc.*+ 7,408 93,785
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 3,050,712
--------------
MEDIA 4.1%
Washington Post Co. -- Class B 1,214 1,116,880
Harte-Hanks, Inc. 10,305 257,728
Lee Enterprises, Inc.+ 5,425 251,395
Westwood One, Inc.* 11,668 230,676
Valassis Communications, Inc.* 6,187 183,012
Reader's Digest Association, Inc. 11,919 173,898
Catalina Marketing Corp. 6,218 143,511
--------------
TOTAL MEDIA 2,357,100
--------------
HOUSEHOLD DURABLES 1.9%
Harman International Industries, Inc. 7,870 847,992
Blyth, Inc. 4,888 151,039
Tupperware Corp.+ 6,964 118,249
--------------
TOTAL HOUSEHOLD DURABLES 1,117,280
--------------
MULTILINE RETAIL 0.8%
Dollar Tree Stores, Inc.*+ 13,598 366,466
99 Cents Only Stores* 8,354 118,877
--------------
TOTAL MULTILINE RETAIL 485,343
--------------
AUTO COMPONENTS 0.6%
Gentex Corp. 9,268 325,585
--------------
TOTAL AUTO COMPONENTS 325,585
--------------
TEXTILES & APPAREL 0.4%
Timberland Co. -- Class A*+ 4,227 240,094
--------------
TOTAL TEXTILES & APPAREL 240,094
--------------
AUTOMOBILES 0.3%
Thor Industries, Inc. 6,811 180,287
--------------
TOTAL AUTOMOBILES 180,287
--------------
TOTAL CONSUMER DISCRETIONARY 12,674,511
--------------
INFORMATION TECHNOLOGY 18.9%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.7%
Microchip Technology, Inc.+ 24,647 661,525
Lam Research Corp.* 16,046 351,086
International Rectifier Corp.* 7,870 269,941
Cree, Inc.*+ 8,741 266,863
Atmel Corp.*+ 56,922 206,058
Silicon Laboratories, Inc.*+ 6,183 204,595
Integrated Circuit Systems, Inc.*+ 8,667 186,340
Semtech Corp.*+ 8,942 171,418
Cypress Semiconductor Corp.*+ 15,033 132,892
Micrel, Inc.* 10,960 114,094
Cabot Microelectronics Corp.*+ 2,978 107,953
LTX Corp.* 7,326 39,634
--------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 2,712,399
--------------
IT CONSULTING & SERVICES 4.4%
Cognizant Technology
Solutions Corp.* 15,762 480,899
DST Systems, Inc.* 10,081 448,302
Alliance Data Systems Corp.* 9,635 390,796
Ceridian Corp.* 17,784 327,403
Certegy, Inc. 7,578 281,977
Acxiom Corp. 10,308 244,712
Gartner, Inc. -- Class A* 12,968 151,596
Titan Corp.* 10,117 141,334
CSG Systems International, Inc.* 6,207 95,650
--------------
TOTAL IT CONSULTING & SERVICES 2,562,669
--------------
SOFTWARE 4.0%
McAfee, Inc.*+ 18,701 375,890
Synopsys, Inc.*+ 18,662 295,419
Fair Isaac Corp. 8,439 246,419
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 61
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
Activision, Inc.* 16,521 $ 229,146
Jack Henry & Associates, Inc. 10,818 203,054
Reynolds & Reynolds Co. -- Class A+ 7,715 190,329
Macromedia, Inc.* 8,347 167,608
RSA Security, Inc.* 7,612 146,912
Macrovision Corp.*+ 5,903 142,144
Wind River Systems, Inc.* 9,748 118,926
Mentor Graphics Corp.* 8,585 94,134
Transaction Systems Architects, Inc. --
Class A* 4,456 82,815
--------------
TOTAL SOFTWARE 2,292,796
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.1%
CDW Corp. 9,983 579,314
Amphenol Corp. -- Class A* 10,542 361,169
National Instruments Corp.+ 9,412 284,901
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,225,384
--------------
COMPUTERS & PERIPHERALS 1.7%
Sandisk Corp.*+ 19,388 564,579
Diebold, Inc.+ 8,577 400,546
--------------
TOTAL COMPUTERS & PERIPHERALS 965,125
--------------
COMMUNICATIONS EQUIPMENT 1.1%
Plantronics, Inc. 5,748 248,543
ADTRAN, Inc.+ 9,509 215,664
Avocent Corp.* 5,891 153,343
--------------
TOTAL COMMUNICATIONS EQUIPMENT 617,550
--------------
OFFICE ELECTRONICS 0.9%
Zebra Technologies Corp. -- Class A*+ 8,578 523,344
--------------
TOTAL OFFICE ELECTRONICS 523,344
--------------
INTERNET SOFTWARE & SERVICES 0.0%
Retek, Inc.* 6,700 30,552
--------------
TOTAL INTERNET SOFTWARE & SERVICES 30,552
--------------
TOTAL INFORMATION TECHNOLOGY 10,929,819
--------------
HEALTH CARE 15.9%
HEALTH CARE PROVIDERS & SERVICES 5.6%
Patterson Cos., Inc.* 8,220 629,323
Coventry Health Care, Inc.*+ 10,738 573,087
Lincare Holdings, Inc.* 11,963 355,421
Omnicare, Inc. 12,482 353,989
Henry Schein, Inc.* 5,167 321,956
Covance, Inc.* 7,501 299,815
Renal Care Group, Inc.* 7,976 257,066
First Health Group Corp.* 10,974 176,572
Apria Healthcare Group, Inc.* 5,968 162,628
LifePoint Hospitals, Inc.* 4,676 140,327
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 3,270,184
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 5.0%
Varian Medical Systems, Inc.*+ 16,241 561,451
DENTSPLY International, Inc. 9,597 498,468
Beckman Coulter, Inc. 7,361 413,099
Hillenbrand Industries, Inc. 7,417 374,781
Cytyc Corp.* 13,330 321,920
Edwards Lifesciences Corp.* 7,172 240,262
Inamed Corp.* 4,261 203,122
Varian, Inc.* 4,174 158,069
Visx, Inc.*+ 5,908 121,705
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,892,877
--------------
PHARMACEUTICALS 3.7%
IVAX Corp.*+ 29,896 572,508
Barr Pharmaceuticals, Inc.* 12,526 518,952
Sepracor, Inc.*+ 10,471 510,775
Valeant Pharmaceuticals International 10,075 243,009
Perrigo Co. 8,470 174,059
Par Pharmaceutical Cos., Inc.*+ 4,101 147,349
--------------
TOTAL PHARMACEUTICALS 2,166,652
--------------
BIOTECHNOLOGY 1.6%
Cephalon, Inc.*+ 6,772 324,379
Charles River Laboratories
International, Inc.* 5,525 253,045
Protein Design Labs, Inc.*+ 11,346 222,155
Vertex Pharmaceuticals, Inc.* 9,542 100,191
--------------
TOTAL BIOTECHNOLOGY 899,770
--------------
TOTAL HEALTH CARE 9,229,483
--------------
INDUSTRIALS 13.7%
COMMERCIAL SERVICES & SUPPLIES 6.1%
Dun & Bradstreet Corp.*+ 8,444 495,663
ChoicePoint, Inc.* 10,646 454,052
Career Education Corp.*+ 12,289 349,376
HNI Corp. 6,850 271,123
Stericycle, Inc.*+ 5,421 248,824
Education Management Corp.* 8,722 232,354
Herman Miller, Inc. 8,532 210,314
Brink's Co. 6,778 204,492
Copart, Inc.* 10,790 204,255
ITT Educational Services, Inc.* 5,481 197,590
DeVry, Inc.*+ 8,437 174,730
Corinthian Colleges, Inc.*+ 10,812 145,746
Rollins, Inc. 5,469 132,842
Sotheby's Holdings, Inc. -- Class A* 7,561 118,859
Korn/Ferry International, Inc.* 4,673 85,189
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,525,409
--------------
See Notes to Financial Statements.
62 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
AIR FREIGHT & COURIERS 2.6%
Expeditors International
Washington, Inc.+ 12,674 $ 655,246
C.H. Robinson Worldwide, Inc.+ 10,250 475,498
J.B.Hunt Transport Services, Inc.+ 9,624 357,435
--------------
TOTAL AIR FREIGHT & COURIERS 1,488,179
--------------
MACHINERY 1.2%
Donaldson Co., Inc. 10,348 293,780
Graco, Inc. 8,239 276,006
Nordson Corp. 4,273 146,692
--------------
TOTAL MACHINERY 716,478
--------------
ELECTRICAL EQUIPMENT 1.0%
Hubbell, Inc. -- Class B 7,312 327,797
AMETEK, Inc. 8,201 248,654
--------------
TOTAL ELECTRICAL EQUIPMENT 576,451
--------------
TRADING COMPANIES & DISTRIBUTORS 0.9%
Fastenal Co. 9,096 523,930
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 523,930
--------------
AIRLINES 0.6%
JetBlue Airways Corp.*+ 12,400 259,408
AirTran Holdings, Inc.* 10,262 102,210
--------------
TOTAL AIRLINES 361,618
--------------
AEROSPACE & DEFENSE 0.5%
Alliant Techsystems, Inc.* 4,467 270,253
--------------
TOTAL AEROSPACE & DEFENSE 270,253
--------------
CONSTRUCTION & ENGINEERING 0.4%
Jacobs Engineering Group, Inc.* 6,734 257,845
--------------
TOTAL CONSTRUCTION & ENGINEERING 257,845
--------------
INDUSTRIAL CONGLOMERATES 0.4%
Carlisle Cos., Inc. 3,723 238,011
--------------
TOTAL INDUSTRIAL CONGLOMERATES 238,011
--------------
TOTAL INDUSTRIALS 7,958,174
--------------
FINANCIALS 11.6%
BANKS 5.6%
Compass Bancshares, Inc. 14,645 641,744
Commerce Bancorp, Inc./NJ+ 9,394 518,549
TCF Financial Corp.+ 16,738 506,994
City National Corp.+ 5,868 381,126
Bank Of Hawaii Corp. 6,268 296,163
Cullen/Frost Bankers, Inc. 6,161 286,302
Wilmington Trust Corp. 7,903 286,168
Westamerica Bancorporation 3,779 207,429
Silicon Valley Bancshares* 4,270 158,716
--------------
TOTAL BANKS 3,283,191
--------------
CAPITAL MARKETS 3.4%
Legg Mason, Inc.+ 12,035 641,078
SEI Investments Co.+ 12,369 416,588
Investors Financial Services Corp.+ 7,890 356,076
Eaton Vance Corp.+ 8,044 324,897
Waddell & Reed Financial, Inc. --
Class A 9,914 218,108
--------------
TOTAL CAPITAL MARKETS 1,956,747
--------------
INSURANCE 1.3%
Brown & Brown, Inc. 8,194 374,466
Arthur J. Gallagher & Co.+ 10,997 364,330
--------------
TOTAL INSURANCE 738,796
--------------
REAL ESTATE 1.0%
United Dominion Realty Trust, Inc.+ 15,313 303,657
Rayonier, Inc. 5,935 268,499
--------------
TOTAL REAL ESTATE 572,156
--------------
CONSUMER FINANCE 0.3%
MoneyGram International, Inc. 10,638 181,697
--------------
TOTAL CONSUMER FINANCE 181,697
--------------
TOTAL FINANCIALS 6,732,587
--------------
ENERGY 7.2%
OIL & GAS 4.2%
XTO Energy, Inc.+ 30,931 1,004,639
Murphy Oil Corp. 11,007 955,077
Western Gas Resources, Inc. 8,786 251,192
Plains Exploration &
Production Co.*+ 9,226 220,132
--------------
TOTAL OIL & GAS 2,431,040
--------------
ENERGY EQUIPMENT & SERVICES 3.0%
Smith International, Inc.*+ 12,556 762,526
Patterson-UTI Energy, Inc. 19,930 380,065
Grant Prideco, Inc.* 14,653 300,240
FMC Technologies, Inc.* 8,120 271,208
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,714,039
--------------
TOTAL ENERGY 4,145,079
--------------
CONSUMER STAPLES 3.3%
FOOD & DRUG RETAILING 1.1%
Whole Foods Market, Inc.+ 7,463 640,251
--------------
TOTAL FOOD & DRUG RETAILING 640,251
--------------
HOUSEHOLD PRODUCTS 1.1%
Energizer Holdings, Inc.*+ 9,320 429,652
Church & Dwight Co., Inc. 7,415 208,065
--------------
TOTAL HOUSEHOLD PRODUCTS 637,717
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 63
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
FOOD PRODUCTS 1.1%
Hormel Foods Corp.+ 16,555 $ 443,343
Tootsie Roll Industries, Inc. 6,232 182,099
--------------
TOTAL FOOD PRODUCTS 625,442
--------------
TOTAL CONSUMER STAPLES 1,903,410
--------------
MATERIALS 3.0%
CHEMICALS 2.5%
Lyondell Chemical Co.+ 21,342 479,341
Valspar Corp. 6,110 285,215
Scotts Co. -- Class A* 3,877 248,709
IMC Global, Inc.*+ 13,817 240,278
Olin Corp. 8,390 167,800
--------------
TOTAL CHEMICALS 1,421,343
--------------
CONTAINERS & PACKAGING 0.5%
Packaging Corporation of America 12,772 312,531
--------------
TOTAL CONTAINERS & PACKAGING 312,531
--------------
TOTAL MATERIALS 1,733,874
--------------
UTILITIES 1.7%
MULTI-UTILITIES 0.7%
Equitable Resources, Inc.+ 7,419 402,926
--------------
TOTAL MULTI-UTILITIES 402,926
--------------
ELECTRIC UTILITIES 0.6%
DPL, Inc. 15,161 312,013
--------------
TOTAL ELECTRIC UTILITIES 312,013
--------------
WATER UTILITIES 0.4%
Aqua America, Inc. 11,115 245,753
--------------
TOTAL WATER UTILITIES 245,753
--------------
TOTAL UTILITIES 960,692
--------------
TELECOMMUNICATION SERVICES 0.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
Cincinnati Bell, Inc.* 29,301 102,260
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 102,260
--------------
TOTAL TELECOMMUNICATION SERVICES 102,260
--------------
TOTAL COMMON STOCKS
(Cost $55,417,486) 56,369,889
--------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- -------------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 2,759 $ 2,759
1.71% due 10/01/04 230,565 230,565
1.70% due 10/01/04 230,565 230,565
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $463,889) 463,889
--------------
SECURITIES LENDING COLLATERAL 14.2%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 8,186,705 8,186,705
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,186,705) 8,186,705
--------------
TOTAL INVESTMENTS 112.4%
(Cost $64,068,080 $ 65,020,483
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.4)% $ (7,158,235)
==============
NET ASSETS - 100.0% $ 57,862,248
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
See Notes to Financial Statements.
64 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
COMMON STOCKS 99.9%
INFORMATION TECHNOLOGY 25.6%
SOFTWARE 8.4%
Microsoft Corp. 11,554 $ 319,468
Oracle Corp.* 5,494 61,972
Symantec Corp.* 340 18,659
Electronic Arts, Inc.*+ 328 15,085
Adobe Systems, Inc.+ 258 12,763
Intuit, Inc.* 202 9,171
Autodesk, Inc.+ 118 5,739
Mercury Interactive Corp.* 99 3,453
Citrix Systems, Inc.* 181 3,171
Parametric Technology Corp.* 286 1,510
--------------
TOTAL SOFTWARE 450,991
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 5.5%
Intel Corp. 6,820 136,809
Texas Instruments, Inc. 1,838 39,113
Applied Materials, Inc.* 1,807 29,797
Analog Devices, Inc.+ 400 15,512
Maxim Integrated Products, Inc.+ 349 14,759
Linear Technology Corp. 323 11,705
Xilinx, Inc. 371 10,017
Broadcom Corp. -- Class A* 347 9,470
KLA-Tencor Corp.* 210 8,711
Altera Corp.*+ 394 7,711
National Semiconductor Corp.* 381 5,902
Teradyne, Inc.* 205 2,747
PMC - Sierra, Inc.* 188 1,656
--------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 293,909
--------------
COMPUTERS & PERIPHERALS 5.0%
International Business
Machines Corp. 1,785 153,046
Dell, Inc.* 2,657 94,589
Lexmark International, Inc.* 143 12,013
Network Appliance, Inc.* 381 8,763
--------------
TOTAL COMPUTERS & PERIPHERALS 268,411
--------------
COMMUNICATIONS EQUIPMENT 4.1%
Cisco Systems, Inc.* 7,189 130,121
Qualcomm, Inc. 1,730 67,539
Lucent Technologies, Inc.* 4,584 14,531
Avaya, Inc.* 481 6,705
--------------
TOTAL COMMUNICATIONS EQUIPMENT 218,896
--------------
IT CONSULTING & SERVICES 1.4%
First Data Corp. 907 39,455
Automatic Data Processing, Inc. 616 25,453
Paychex, Inc. 400 12,060
--------------
TOTAL IT CONSULTING & SERVICES 76,968
--------------
INTERNET SOFTWARE & SERVICES 0.9%
Yahoo!, Inc.*+ 1,446 49,034
--------------
TOTAL INTERNET SOFTWARE & SERVICES 49,034
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Agilent Technologies, Inc.* 512 11,044
Solectron Corp.* 1,026 5,079
Symbol Technologies, Inc. 258 3,261
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 19,384
--------------
TOTAL INFORMATION TECHNOLOGY 1,377,593
--------------
HEALTH CARE 22.3%
PHARMACEUTICALS 14.5%
Pfizer, Inc. 8,022 245,473
Johnson & Johnson, Inc. 3,156 177,778
Merck & Co., Inc. 2,363 77,979
Eli Lilly & Co. 1,207 72,480
Abbott Laboratories 1,657 70,191
Wyeth 1,420 53,108
Bristol-Myers Squibb Co. 2,072 49,044
Forest Laboratories, Inc.* 393 17,677
Allergan, Inc. 145 10,520
Mylan Laboratories, Inc.+ 286 5,148
--------------
TOTAL PHARMACEUTICALS 779,398
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 4.5%
Medtronic, Inc. 1,282 66,536
Boston Scientific Corp.*+ 892 35,439
Guidant Corp.+ 330 21,793
Baxter International, Inc. 655 21,065
Zimmer Holdings, Inc.* 263 20,788
Stryker Corp. 422 20,290
St. Jude Medical, Inc.* 189 14,226
Becton, Dickinson & Co. 269 13,907
Biomet, Inc. 272 12,752
C.R. Bard, Inc. 110 6,229
Waters Corp.* 123 5,424
Millipore Corp.* 47 2,249
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 240,698
--------------
BIOTECHNOLOGY 1.7%
Amgen, Inc.*+ 1,346 76,291
Gilead Sciences, Inc.* 460 17,195
--------------
TOTAL BIOTECHNOLOGY 93,486
--------------
HEALTH CARE PROVIDERS & SERVICES 1.6%
UnitedHealth Group, Inc. 703 51,839
Cardinal Health, Inc. 460 20,134
IMS Health, Inc. 253 6,052
Express Scripts, Inc.* 74 4,835
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 82,860
--------------
TOTAL HEALTH CARE 1,196,442
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 65
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
CONSUMER STAPLES 19.3%
FOOD & DRUG RETAILING 5.6%
Wal-Mart Stores, Inc. 4,510 $ 239,932
Walgreen Co. 1,086 38,911
Sysco Corp. 679 20,316
--------------
TOTAL FOOD & DRUG RETAILING 299,159
--------------
BEVERAGES 4.6%
Coca-Cola Co. 2,581 103,369
PepsiCo, Inc. 1,801 87,619
Anheuser-Busch Cos., Inc. 853 42,607
Pepsi Bottling Group, Inc. 272 7,385
Brown-Forman Corp. -- Class B 126 5,771
--------------
TOTAL BEVERAGES 246,751
--------------
HOUSEHOLD PRODUCTS 4.0%
Procter & Gamble Co. 2,701 146,178
Kimberly-Clark Corp. 521 33,651
Colgate-Palmolive Co. 566 25,572
Clorox Co. 223 11,886
--------------
TOTAL HOUSEHOLD PRODUCTS 217,287
--------------
TOBACCO 2.1%
Altria Group, Inc. 2,184 102,736
UST, Inc. 177 7,126
--------------
TOTAL TOBACCO 109,862
--------------
FOOD PRODUCTS 1.8%
Sara Lee Corp. 845 19,317
Kellogg Co. 444 18,941
WM Wrigley Jr Co. 244 15,448
H.J. Heinz Co. 373 13,435
Hershey Foods Corp. 265 12,378
Campbell Soup Co. 441 11,594
McCormick & Co., Inc. 151 5,185
--------------
TOTAL FOOD PRODUCTS 96,298
--------------
PERSONAL PRODUCTS 1.2%
Gillette Co. 1,064 44,411
Avon Products, Inc. 500 21,840
--------------
TOTAL PERSONAL PRODUCTS 66,251
--------------
TOTAL CONSUMER STAPLES 1,035,608
--------------
INDUSTRIALS 14.6%
INDUSTRIAL CONGLOMERATES 8.2%
General Electric Co. 11,225 376,935
3M Co. 835 66,775
--------------
TOTAL INDUSTRIAL CONGLOMERATES 443,710
--------------
AEROSPACE & DEFENSE 1.9%
United Technologies Corp. 547 51,079
Boeing Co.+ 889 45,890
Rockwell Collins, Inc. 189 7,019
--------------
TOTAL AEROSPACE & DEFENSE 103,988
--------------
AIR FREIGHT & COURIERS 1.7%
United Parcel Service, Inc. -- Class B 1,191 90,421
--------------
TOTAL AIR FREIGHT & COURIERS 90,421
--------------
COMMERCIAL SERVICES & SUPPLIES 1.2%
Apollo Group, Inc. -- Class A* 204 14,967
Pitney Bowes, Inc. 250 11,025
H&R Block, Inc. 177 8,747
Cintas Corp. 183 7,693
Avery Dennison Corp. 115 7,565
Robert Half International, Inc. 184 4,742
Equifax, Inc. 150 3,954
Monster Worldwide, Inc.* 123 3,031
Deluxe Corp. 48 1,969
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 63,693
--------------
MACHINERY 0.9%
Caterpillar, Inc. 366 29,445
Danaher Corp. 324 16,615
Navistar International Corp.* 66 2,454
--------------
TOTAL MACHINERY 48,514
--------------
ELECTRICAL EQUIPMENT 0.5%
Emerson Electric Co. 450 27,851
--------------
TOTAL ELECTRICAL EQUIPMENT 27,851
--------------
BUILDING PRODUCTS 0.2%
American Standard Cos., Inc.* 224 8,716
--------------
TOTAL BUILDING PRODUCTS 8,716
--------------
AIRLINES 0.0%
Delta Air Lines, Inc.*+ 130 428
--------------
TOTAL AIRLINES 428
--------------
TOTAL INDUSTRIALS 787,321
--------------
CONSUMER DISCRETIONARY 9.1%
SPECIALTY RETAIL 4.3%
Home Depot, Inc. 2,331 91,375
Lowe's Cos., Inc.+ 832 45,219
Best Buy Co., Inc. 349 18,930
The Gap, Inc. 961 17,971
Staples, Inc. 524 15,626
Bed Bath & Beyond, Inc.* 316 11,727
TJX Cos., Inc. 515 11,350
Sherwin-Williams Co. 156 6,858
AutoZone, Inc.* 79 6,103
RadioShack Corp. 172 4,926
--------------
TOTAL SPECIALTY RETAIL 230,085
--------------
INTERNET & CATALOG RETAIL 1.2%
eBay, Inc.*+ 699 64,266
--------------
TOTAL INTERNET & CATALOG RETAIL 64,266
--------------
See Notes to Financial Statements.
66 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
MEDIA 0.9%
McGraw-Hill Cos., Inc. 201 $ 16,018
Omnicom Group, Inc. 198 14,466
New York Times Co. -- Class A 160 6,256
Knight-Ridder, Inc. 74 4,843
Dow Jones & Co., Inc.+ 78 3,168
Meredith Corp. 48 2,466
--------------
TOTAL MEDIA 47,217
--------------
HOTELS RESTAURANTS & LEISURE 0.8%
Starbucks Corp.* 418 19,002
International Game Technology, Inc. 368 13,230
Yum! Brands, Inc. 307 12,483
--------------
TOTAL HOTELS RESTAURANTS & LEISURE 44,715
--------------
TEXTILES & APPAREL 0.6%
Nike, Inc. -- Class B+ 281 22,143
Coach, Inc.* 199 8,441
--------------
TOTAL TEXTILES & APPAREL 30,584
--------------
MULTILINE RETAIL 0.5%
Kohl's Corp.*+ 365 17,589
Dollar General Corp. 353 7,113
Family Dollar Stores, Inc. 180 4,878
--------------
TOTAL MULTILINE RETAIL 29,580
--------------
HOUSEHOLD DURABLES 0.4%
Fortune Brands, Inc. 157 11,632
Black & Decker Corp. 76 5,885
Maytag Corp. 75 1,378
--------------
TOTAL HOUSEHOLD DURABLES 18,895
--------------
AUTOMOBILES 0.3%
Harley-Davidson, Inc. 311 18,486
--------------
TOTAL AUTOMOBILES 18,486
--------------
AUTO COMPONENTS 0.1%
Delphi Corp. 594 5,518
--------------
TOTAL AUTO COMPONENTS 5,518
--------------
TOTAL CONSUMER DISCRETIONARY 489,346
--------------
FINANCIALS 4.3%
CONSUMER FINANCE 1.7%
American Express Co. 1,347 69,317
SLM Corp. 465 20,739
--------------
TOTAL CONSUMER FINANCE 90,056
--------------
THRIFTS & MORTGAGE FINANCE 1.2%
Fannie Mae 1,032 65,429
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 65,429
--------------
INSURANCE 0.5%
Marsh & McLennan Cos., Inc. 556 25,443
--------------
TOTAL INSURANCE 25,443
--------------
BANKS 0.3%
North Fork Bancorporation, Inc. 327 14,535
--------------
TOTAL BANKS 14,535
--------------
DIVERSIFIED FINANCIALS 0.2%
Moody's Corp. 161 11,793
--------------
TOTAL DIVERSIFIED FINANCIALS 11,793
--------------
REAL ESTATE 0.2%
Simon Property Group, Inc. 218 11,691
--------------
TOTAL REAL ESTATE 11,691
--------------
CAPITAL MARKETS 0.2%
T. Rowe Price Group, Inc. 131 6,673
Federated Investors, Inc. -- Class B 113 3,214
--------------
TOTAL CAPITAL MARKETS 9,887
--------------
TOTAL FINANCIALS 228,834
--------------
MATERIALS 2.7%
CHEMICALS 2.3%
EI Du Pont de Nemours & Co. 1,060 45,368
Dow Chemical Co. 995 44,954
Praxair, Inc. 349 14,916
Ecolab, Inc. 275 8,646
Sigma-Aldrich Corp. 66 3,828
International Flavors &
Fragrances, Inc. 100 3,820
Hercules, Inc.* 116 1,653
--------------
TOTAL CHEMICALS 123,185
--------------
CONTAINERS & PACKAGING 0.2%
Ball Corp. 117 4,379
Pactiv Corp.* 163 3,790
Sealed Air Corp.* 80 3,708
--------------
TOTAL CONTAINERS & PACKAGING 11,877
--------------
METALS & MINING 0.2%
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 189 7,655
Allegheny Technologies, Inc. 101 1,843
--------------
TOTAL METALS & MINING 9,498
--------------
TOTAL MATERIALS 144,560
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 67
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
MARKET
VALUE
SHARES (NOTE 1)
----------- --------------
ENERGY 1.3%
ENERGY EQUIPMENT & SERVICES 1.3%
Schlumberger Ltd. 632 $ 42,540
Halliburton Co. 470 15,834
BJ Services Co.+ 174 9,119
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 67,493
--------------
TOTAL ENERGY 67,493
--------------
TELECOMMUNICATION SERVICES 0.6%
WIRELESS TELECOMMUNICATION SERVICES 0.5%
Nextel Communications, Inc. --
Class A* 1,180 28,131
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 28,131
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.1%
Qwest Communications
International, Inc.* 1,928 6,420
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 6,420
--------------
TOTAL TELECOMMUNICATION SERVICES 34,551
--------------
UTILITIES 0.1%
MULTI-UTILITIES 0.1%
AES Corp.* 686 6,853
--------------
TOTAL MULTI-UTILITIES 6,853
--------------
TOTAL UTILITIES 6,853
--------------
TOTAL COMMON STOCKS
(Cost $5,113,542) 5,368,601
--------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
REPURCHASE AGREEMENTS 1.8%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 580 $ 580
1.71% due 10/01/04 48,556 48,556
1.70% due 10/01/04 48,556 48,556
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $97,692) 97,692
--------------
SECURITIES LENDING COLLATERAL 3.5%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 189,731 189,731
--------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $189,731) 189,731
--------------
TOTAL INVESTMENTS 105.2%
(Cost $5,400,965) $ 5,656,024
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (5.2)% $ (280,929)
==============
NET ASSETS - 100.0% $ 5,375,095
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 9.
See Notes to Financial Statements.
68 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
------------ ---------------
FEDERAL AGENCY DISCOUNT NOTES 88.5%
Fannie Mae*
1.53% due 10/08/04 $100,000,000 $ 99,970,250
1.51% due 10/06/04 50,000,000 49,989,514
1.60% due 11/03/04 50,000,000 49,926,667
1.64% due 11/17/04 50,000,000 49,892,944
1.47% due 10/13/04 25,000,000 24,987,750
1.53% due 10/20/04 25,000,000 24,979,812
Farmer Mac*
1.47% due 10/06/04 50,000,000 49,989,792
1.65% due 10/13/04 50,000,000 49,972,500
1.57% due 10/27/04 50,000,000 49,943,306
1.84% due 12/29/04 50,000,000 49,772,556
1.89% due 01/03/05 25,000,000 24,876,625
1.83% due 12/15/04 22,000,000 21,916,125
Federal Farm Credit Bank*
1.58% due 10/08/04 50,000,000 49,984,639
1.40% due 10/06/04 10,000,000 9,998,056
Federal Home Loan Bank*
1.71% due 10/25/04 100,000,000 99,886,000
1.49% due 10/06/04 50,000,000 49,989,653
1.56% due 10/29/04 50,000,000 49,939,333
1.73% due 10/27/04 50,000,000 49,937,528
1.64% due 11/08/04 50,000,000 49,913,444
1.72% due 12/10/04 50,000,000 49,832,778
1.53% due 10/13/04 25,000,000 24,987,250
1.42% due 11/19/04 25,000,000 24,951,680
1.40% due 10/07/04 15,000,000 14,996,500
Freddie Mac*
1.51% due 10/19/04 50,000,000 49,962,250
1.69% due 11/05/04 50,000,000 49,917,847
1.74% due 12/07/04 50,000,000 49,838,083
1.72% due 12/27/04 50,000,000 49,792,167
1.73% due 12/28/04 50,000,000 49,788,555
1.88% due 12/28/04 50,000,000 49,770,833
1.67% due 10/12/04 45,000,000 44,977,037
1.44% due 10/12/04 25,000,000 24,989,000
1.76% due 01/11/05 25,000,000 24,875,333
2.29% due 06/28/05 20,000,000 19,656,500
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,434,202,307) 1,434,202,307
---------------
FEDERAL AGENCY BONDS 0.3%
Federal Home Loan Bank*
2.35% due 07/29/05 5,000,000 5,000,000
---------------
TOTAL FEDERAL AGENCY BONDS
(Cost $5,000,000) 5,000,000
---------------
REPURCHASE AGREEMENTS 12.2%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 197,032,141 197,032,141
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $197,032,141) 197,032,141
---------------
TOTAL INVESTMENTS 101.0%
(Cost $1,636,234,448) $ 1,636,234,448
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (1.0)% $ (15,891,281)
===============
NET ASSETS - 100.0% $ 1,620,343,167
* THE ISSUER IS A PUBLICALLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL
CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 69
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------- ------------- --------------- -------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ -- $ -- $ 1,174,553,704 $ --
Investments in Master Portfolio** (Note 3) 276,751,339 586,230,843 -- 290,804,523
Segregated Cash with Broker -- -- 1,020,000 --
Cash in Custodian Bank -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- 3,078 --
Receivable for Securities Sold (Note 1) -- 9,879,200 -- 2,305,321
Receivable for Shares Purchased 10,650,522 4,286,308 14,370,456 2,460,939
Investment Income Receivable (Note 1) -- -- 23,805 --
Other Assets -- -- -- 33,838
------------- ------------- --------------- -------------
TOTAL ASSETS 287,401,861 600,396,351 1,189,971,043 295,604,621
============= ============= =============== =============
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- --
Payable for Futures Contracts Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 9) -- -- 325,347,018 --
Payable for Securities Purchased (Note 1) 9,682,391 -- 7,384,772 --
Liability for Shares Redeemed 863,296 13,962,316 2,358,198 4,666,287
Investment Advisory Fee Payable (Note 4) -- -- 522,065 --
Transfer Agent Fee Payable (Note 4) 55,495 120,553 174,022 57,618
Distribution and Service Fee Payable (Note 4) 12,054 16,851 4,879 6,924
Portfolio Accounting Fee Payable (Note 4) 21,771 39,480 48,547 22,408
Custody Fees Payable -- -- 16,706 --
Cash Payable to Custodian Bank -- -- 1,293 --
Payable to Master Portfolio -- -- -- --
Other Liabilities 81,635 157,143 245,861 76,316
------------- ------------- --------------- -------------
TOTAL LIABILITIES 10,716,642 14,296,343 336,103,361 4,829,553
------------- ------------- --------------- -------------
NET ASSETS $ 276,685,219 $ 586,100,008 $ 853,867,682 $ 290,775,068
============= ============= =============== =============
ANALYSIS OF NET ASSETS
Paid-In Capital $ 370,834,359 $ 793,260,379 $ 1,545,163,741 $ 436,486,236
Undistributed Net Investment Income (Loss) (1,018,830) (1,542,703) (4,285,775) (792,453)
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (90,472,316) (193,720,041) (1,013,759,602) (137,190,786)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts (2,657,994) (11,897,627) 326,749,318 (7,727,929)
------------- ------------- --------------- -------------
NET ASSETS $ 276,685,219 $ 586,100,008 $ 853,867,682 $ 290,775,068
============= ============= =============== =============
Investor Class $ 174,048,348 $ 467,765,056 $ 812,539,537 $ 239,332,030
Advisor Class 55,975,671 61,204,392 28,554,631 26,255,807
A-Class 8,378,087 6,198,941 874,877 3,703,757
C-Class 38,283,113 50,931,619 11,898,637 21,483,474
H-Class N/A N/A N/A N/A
SHARES OUTSTANDING
Investor Class 7,330,476 50,878,894 85,586,943 9,287,363
Advisor Class 2,434,983 6,901,813 3,105,008 1,025,031
A-Class 363,912 699,108 94,945 144,352
C-Class 1,673,626 5,747,299 1,304,647 867,109
H-Class N/A N/A N/A N/A
NET ASSET VALUES
Investor Class $ 23.74 $ 9.19 $ 9.49 $ 25.77
Advisor Class 22.99 8.87 9.20 25.61
A-Class 23.02 8.87 9.21 25.66
A-Class Maximum Offering Price Per Share*** 24.17 9.31 9.67 26.94
C-Class 22.87 8.86 9.12 24.78
H-Class N/A N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $0, $0, $847,985,407, $0, $37,888,477,
$4,251,654, $126,350,045, $32,948,517, $144,281,158, $0, $30,666,029, AND
$48,267,459, RESPECTIVELY.
** THE COST OF INVESTMENTS IN MASTER PORTFOLIO IS $279,409,333, $598,128,470,
$0, $298,532,452, $0, $0, $0, $0, $0, $2,927,166,242, $0, AND $0,
RESPECTIVELY.
*** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
70 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
September 30, 2004
- --------------------------------------------------------------------------------
INVERSE INVERSE
MEDIUS MID-CAP MEKROS SMALL-CAP
FUND FUND FUND FUND
------------- ------------- --------------- -------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 40,634,848 $ 4,251,654 $ 131,795,763 $ 32,948,517
Investments in Master Portfolio** (Note 3) -- -- -- --
Segregated Cash with Broker 1,627,254 684,865 5,490,241 3,811,959
Cash in Custodian Bank 38 -- 124 36
Receivable for Equity Index Swap Settlement (Note 1) 749,021 -- 2,189,005 --
Receivable for Futures Contracts Settlement (Note 1) 80,794 -- 68,102 --
Receivable for Securities Sold (Note 1) 379,007 -- -- --
Receivable for Shares Purchased 11,260,297 1,452,620 22,694,020 1,068,392
Investment Income Receivable (Note 1) 16,077 201 73,008 1,315
Other Assets -- -- -- --
------------- ------------- --------------- -------------
TOTAL ASSETS 54,747,336 6,389,340 162,310,263 37,830,219
============= ============= =============== =============
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- 169,759 -- 1,787,522
Payable for Futures Contracts Settlement (Note 1) -- 13,330 -- 20,300
Payable upon Return of Securities Loaned (Note 9) 4,176,485 -- 10,494,337 --
Payable for Securities Purchased (Note 1) 132,641 -- -- --
Liability for Shares Redeemed 3,661,913 256,155 6,055,562 1,022,066
Investment Advisory Fee Payable (Note 4) 33,397 6,075 105,498 31,373
Transfer Agent Fee Payable (Note 4) 9,277 1,688 29,305 8,715
Distribution and Service Fee Payable (Note 4) 3,038 587 9,190 4,792
Portfolio Accounting Fee Payable (Note 4) 3,711 675 11,722 3,486
Custody Fees Payable 898 162 4,988 837
Cash Payable to Custodian Bank -- -- -- --
Payable to Master Portfolio -- -- -- --
Other Liabilities 15,570 1,915 39,588 13,319
------------- ------------- --------------- -------------
TOTAL LIABILITIES 8,036,930 450,346 16,750,190 2,892,410
------------- ------------- --------------- -------------
NET ASSETS $ 46,710,406 $ 5,938,994 $ 145,560,073 $ 34,937,809
============= ============= =============== =============
ANALYSIS OF NET ASSETS
Paid-In Capital $ 53,780,205 $ 6,694,458 $ 181,145,074 $ 39,864,281
Undistributed Net Investment Income (Loss) (168,766) (16,026) (572,550) (154,750)
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (9,850,180) (697,448) (42,494,248) (4,233,995)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 2,949,147 (41,990) 7,481,797 (537,727)
------------- ------------- --------------- -------------
NET ASSETS $ 46,710,406 $ 5,938,994 $ 145,560,073 $ 34,937,809
============= ============= =============== =============
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 253,470 $ 158,914 $ 1,012,073 $ 247,734
C-Class 11,088,827 123,606 21,993,613 17,665,777
H-Class 35,368,109 5,656,474 122,554,387 17,024,298
SHARES OUTSTANDING
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class 9,300 3,243 40,528 4,986
C-Class 416,250 2,533 904,861 357,101
H-Class 1,297,887 115,433 4,909,328 342,762
NET ASSET VALUES
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 27.26 $ 49.01 $ 24.97 $ 49.69
A-Class Maximum Offering Price Per Share*** 28.62 51.45 26.22 52.17
C-Class 26.64 48.79 24.31 49.47
H-Class 27.25 49.00 24.96 49.67
U.S. LARGE-CAP LARGE-CAP
GOVERNEMENT JUNO EUROPE JAPAN
BOND FUND FUND FUND FUND
------------- -------------- --------------- -------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 152,899,264 $ -- $ 30,666,029 $ 48,267,459
Investments in Master Portfolio** (Note 3) -- 2,740,342,809 -- --
Segregated Cash with Broker 766,500 -- -- 211,300
Cash in Custodian Bank 81 -- 42 42
Receivable for Equity Index Swap Settlement (Note 1) -- -- 702,490 --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- 36,256
Receivable for Securities Sold (Note 1) 11,306,146 -- -- --
Receivable for Shares Purchased 1,091,315 22,259,895 3,044,611 522,685
Investment Income Receivable (Note 1) 933,215 -- 1,455 1,813
Other Assets 554 -- -- --
------------- -------------- --------------- -------------
TOTAL ASSETS 166,997,075 2,762,602,704 34,414,627 49,039,555
============= ============== =============== =============
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- 2,627,565
Payable for Futures Contracts Settlement (Note 1) 225,902 -- -- --
Payable upon Return of Securities Loaned (Note 9) -- -- -- --
Payable for Securities Purchased (Note 1) -- 14,183,062 -- --
Liability for Shares Redeemed 13,188,272 7,124,830 534,489 5,381,058
Investment Advisory Fee Payable (Note 4) 70,146 -- 16,201 33,347
Transfer Agent Fee Payable (Note 4) 28,059 542,204 4,500 9,263
Distribution and Service Fee Payable (Note 4) 14,824 182,186 1,852 2,838
Portfolio Accounting Fee Payable (Note 4) 14,029 92,729 1,800 3,705
Custody Fees Payable 3,367 -- 432 889
Cash Payable to Custodian Bank -- -- -- --
Payable to Master Portfolio -- 38 -- --
Other Liabilities 38,948 751,526 6,447 14,187
------------- -------------- --------------- -------------
TOTAL LIABILITIES 13,583,547 22,876,575 565,721 8,072,852
------------- -------------- --------------- -------------
NET ASSETS $ 153,413,528 $2,739,726,129 $ 33,848,906 $ 40,966,703
============= =-============ =============== =============
ANALYSIS OF NET ASSETS
Paid-In Capital $ 159,015,329 $2,964,869,250 $ 37,091,144 $ 58,621,083
Undistributed Net Investment Income (Loss) (242,384) (9,994,163) (79,730) 11,245,101
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (15,073,648) (28,325,525) (3,798,114) (27,410,627)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 9,714,231 (186,823,433) 635,606 (1,488,854)
------------- -------------- --------------- -------------
NET ASSETS $ 153,413,528 $2,739,726,129 $ 33,848,906 $ 40,966,703
============= ============== =============== =============
Investor Class $ 32,092,745 $1,592,954,226 N/A N/A
Advisor Class 114,729,871 136,210,308 N/A N/A
A-Class 366,237 119,907,343 $ 117,402 $ 192,592
C-Class 6,224,675 890,654,252 1,887,898 6,447,969
H-Class N/A N/A 31,843,606 34,326,142
SHARES OUTSTANDING
Investor Class 2,954,777 81,576,259 N/A N/A
Advisor Class 10,549,447 7,016,437 N/A N/A
A-Class 33,689 6,167,762 7,633 6,722
C-Class 571,416 47,095,450 126,239 228,673
H-Class N/A N/A 2,069,741 1,197,217
NET ASSET VALUES
Investor Class $ 10.86 $ 19.53 N/A N/A
Advisor Class 10.88 19.41 N/A N/A
A-Class 10.87 19.44 $ 15.38 $ 28.65
A-Class Maximum Offering Price Per Share*** 11.41 20.41 16.15 30.08
C-Class 10.89 18.91 14.95 28.20
H-Class N/A N/A 15.39 28.67
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 71
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
------------- ------------- --------------- -------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 126,101,528 $ 55,512,635 $ 130,822,872 $ 98,160,263
Cash in Custodian Bank -- 328 1,448 346
Receivable for Securities Sold (Note 1) -- 636,056 5,161,413 2,485,512
Receivable for Shares Purchased 12,872,665 8,493,759 1,554,247 6,171,457
Investment Income Receivable (Note 1) 114,384 37,623 110,965 37,647
Other Assets -- -- 1,045 --
------------- ------------- --------------- -------------
TOTAL ASSETS 139,088,577 64,680,401 137,651,990 106,855,225
============= ============= =============== =============
LIABILITIES
Payable upon Return of Securities Loaned (Note 9) 8,100,047 4,875,792 15,604,006 5,820,355
Payable for Securities Purchased (Note 1) 5,908,295 5,373,946 122,346 335,356
Liability for Shares Redeemed 6,638,193 3,144,137 5,656,665 7,170,159
Investment Advisory Fee Payable (Note 4) 67,264 31,439 78,842 33,282
Transfer Agent Fee Payable (Note 4) 22,421 10,480 26,281 11,094
Distribution and Service Fee Payable (Note 4) 5,797 2,380 6,080 3,642
Portfolio Accounting Fee Payable (Note 4) 8,969 4,192 10,512 4,438
Custody Fees Payable 2,625 1,944 2,959 1,065
Cash Payable to Custodian Bank 71 -- -- --
Dividends Payable -- -- -- --
Other Liabilities 19,046 9,707 21,981 9,774
------------- ------------- --------------- -------------
TOTAL LIABILITIES 20,772,728 13,454,017 21,529,672 13,389,165
------------- ------------- --------------- -------------
NET ASSETS $ 118,315,849 $ 51,226,384 $ 116,122,318 $ 93,466,060
============= ============= =============== =============
ANALYSIS OF NET ASSETS
Paid-In Capital $ 117,554,441 $ 51,250,166 $ 115,282,234 $ 93,471,238
Undistributed Net Investment Income (Loss) (52,999) (2,749) 80,264 (102,390)
Accumulated Net Realized Loss on Investments (5,177,757) (2,807,388) (3,543,935) (2,918,168)
Net Unrealized Appreciation on Investments 5,992,164 2,786,355 4,303,755 3,015,380
------------- ------------- --------------- -------------
NET ASSETS $ 118,315,849 $ 51,226,384 $ 116,122,318 $ 93,466,060
============= ============= =============== =============
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 18,227 $ 1,020 $ 1,016 $ 1,042
C-Class 1,911,402 2,109,090 2,500,356 4,098,514
H-Class 116,386,220 49,116,274 113,620,946 89,366,504
Institutional Class N/A N/A N/A N/A
SHARES OUTSTANDING
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class 694 41 41 41
C-Class 73,138 84,425 100,040 161,482
H-Class 4,430,013 1,959,494 4,531,183 3,510,123
Institutional Class N/A N/A N/A N/A
NET ASSET VALUES
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 26.26 $ 25.06 $ 25.08 $ 25.46
A-Class Maximum Offering Price Per Share** 27.57 26.31 26.33 26.73
C-Class 26.13 24.98 24.99 25.38
H-Class 26.27 25.07 25.08 25.46
Institutional Class N/A N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $120,109,364, $52,726,280, $126,519,117,
$95,144,883, $64,068,080, $5,400,965, AND $1,636,234,448, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
72 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
September 30, 2004
- --------------------------------------------------------------------------------
U.S.
MID-CAP LARGE-CAP GOVERNMENT
GROWTH GROWTH MONEY
FUND FUND MARKET FUND
------------- ------------- ---------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 65,020,483 $ 5,656,024 $ 1,636,234,448
Cash in Custodian Bank 7,794 96 7,466
Receivable for Securities Sold (Note 1) 5,968,807 -- --
Receivable for Shares Purchased 655,750 756,183 85,909,891
Investment Income Receivable (Note 1) 18,519 12,167 30,303
Other Assets -- -- --
------------- ------------- ---------------
TOTAL ASSETS 71,671,353 6,424,470 1,722,182,108
============= ============= ===============
LIABILITIES
Payable upon Return of Securities Loaned (Note 9) 8,186,705 189,731 --
Payable for Securities Purchased (Note 1) 395,659 610,645 --
Liability for Shares Redeemed 5,186,658 235,977 100,281,773
Investment Advisory Fee Payable (Note 4) 21,485 5,598 658,188
Transfer Agent Fee Payable (Note 4) 7,162 1,866 256,937
Distribution and Service Fee Payable (Note 4) 2,709 546 48,320
Portfolio Accounting Fee Payable (Note 4) 2,865 746 65,349
Custody Fees Payable 740 182 31,820
Cash Payable to Custodian Bank -- -- --
Dividends Payable -- -- 53,803
Other Liabilities 5,122 4,084 442,751
------------- ------------- ---------------
TOTAL LIABILITIES 13,809,105 1,049,375 101,838,941
------------- ------------- ---------------
NET ASSETS $ 57,862,248 $ 5,375,095 $ 1,620,343,167
============= ============= ===============
ANALYSIS OF NET ASSETS
Paid-In Capital $ 58,629,369 $ 5,749,280 $ 1,620,807,513
Undistributed Net Investment Income (Loss) (46,323) (6,470) --
Accumulated Net Realized Loss on Investments (1,673,201) (622,774) (464,346)
Net Unrealized Appreciation on Investments 952,403 255,059 --
------------- ------------- ---------------
NET ASSETS $ 57,862,248 $ 5,375,095 $ 1,620,343,167
============= ============= ===============
Investor Class N/A N/A $ 1,149,680,224
Advisor Class N/A N/A 247,985,344
A-Class $ 1,017 $ 994 4,126,563
C-Class 1,461,521 683,491 168,549,965
H-Class 56,399,710 4,690,610 N/A
Institutional Class N/A N/A 50,001,071
SHARES OUTSTANDING
Investor Class N/A N/A 1,150,103,585
Advisor Class N/A N/A 248,240,715
A-Class 42 43 4,126,563
C-Class 60,324 29,434 168,549,268
H-Class 2,318,280 201,192 N/A
Institutional Class N/A N/A 50,001,000
NET ASSET VALUES
Investor Class N/A N/A $ 1.00
Advisor Class N/A N/A 1.00
A-Class $ 24.31 $ 23.31 1.00
A-Class Maximum Offering Price Per Share** 25.52 24.47 1.00
C-Class 24.23 23.22 1.00
H-Class 24.33 23.31 N/A
Institutional Class N/A N/A 1.00
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 73
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
------------- ------------- --------------- -------------
INVESTMENT INCOME
Interest (Note 1) $ -- $ -- $ 129,862 $ --
Interest from Securities Lending, net (Note 9) -- -- 86,020 --
Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- 1,249,181 --
Other Income -- -- 3,581 --
------------- ------------- --------------- -------------
Total Income -- -- 1,468,644 --
------------- ------------- --------------- -------------
EXPENSES
Advisory Fees (Note 4) -- -- 3,419,054 --
Transfer Agent and Administrative Fees (Note 4) 368,509 622,837 1,139,685 319,824
Distribution & Service Fees (Note 4):
Advisor Class 139,041 125,374 116,692 52,547
A-Class 3,570 3,524 744 1,630
C-Class 172,875 250,125 74,284 125,138
H-Class -- -- -- --
Accounting Fees (Note 4) 141,689 213,791 305,513 125,994
Registration Fees 74,964 111,526 229,252 53,747
Trustees' Fees 4,807 6,565 14,424 3,394
Custodian Fees 368 454 105,924 240
Printing Expenses 66,588 95,293 200,110 46,753
Miscellaneous 46,419 113,214 148,737 63,186
------------- ------------- --------------- -------------
Total Expenses 1,018,830 1,542,703 5,754,419 792,453
------------- ------------- --------------- -------------
Net Investment Income (Loss) (1,018,830) (1,542,703) (4,285,775) (792,453)
============= ============= =============== =============
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (8,821,694) (17,529,547) 8,417,786 (4,298,011)
Equity Index Swaps -- -- -- --
Futures Contracts -- -- (2,250,042) --
------------- ------------- --------------- -------------
Total Net Realized Gain (Loss) (8,821,694) (17,529,547) 6,167,744 (4,298,011)
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (4,642,899) 6,288,907 (35,041,633) (5,551,965)
Equity Index Swaps -- -- -- --
Futures Contracts -- -- (123,021) --
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation (Depreciation) (4,642,899) 6,288,907 (35,164,654) (5,551,965)
------------- ------------- --------------- -------------
Net Gain (Loss) on Investments (13,464,593) (11,240,640) (28,996,910) (9,849,976)
------------- ------------- --------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (14,483,423) $ (12,783,343) $ (33,282,685) $ (10,642,429)
============= ============= =============== =============
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $7,984, $0, $0, $0, $16, $0, $0, $0,
$0, AND $0, RESPECTIVELY.
See Notes to Financial Statements.
74 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
Period Ended September 30, 2004
- --------------------------------------------------------------------------------
INVERSE INVERSE
MEDIUS MID-CAP MEKROS SMALL-CAP
FUND FUND FUND FUND
------------- ------------- --------------- -------------
INVESTMENT INCOME
Interest (Note 1) $ 102,348 $ 33,677 $ 308,866 $ 236,676
Interest from Securities Lending, net (Note 9) 3,891 -- 19,333 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 331,887 -- 622,052 --
Other Income 114 -- -- 790
------------- ------------- --------------- -------------
Total Income 438,240 33,677 950,251 237,466
------------- ------------- --------------- -------------
EXPENSES
Advisory Fees (Note 4) 305,828 26,129 770,558 179,704
Transfer Agent and Administrative Fees (Note 4) 84,952 7,258 214,044 49,918
Distribution & Service Fees (Note 4):
Advisor Class -- -- -- --
A-Class 197 147 874 483
C-Class 60,547 2,247 140,870 81,623
H-Class 69,619 6,549 177,952 29,029
Accounting Fees (Note 4) 33,981 2,903 84,821 19,967
Registration Fees 19,971 984 49,112 5,211
Trustees' Fees 1,304 51 3,179 449
Custodian Fees 7,829 678 23,852 4,808
Printing Expenses 17,744 829 42,805 5,440
Miscellaneous 5,034 1,928 14,734 15,584
------------- ------------- --------------- -------------
Total Expenses 607,006 49,703 1,522,801 392,216
------------- ------------- --------------- -------------
Net Investment Income (Loss) (168,766) (16,026) (572,550) (154,750)
============= ============= =============== =============
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (768,679) (8,219) (7,041,597) 13,448
Equity Index Swaps (3,049,021) (177,584) (10,070,140) (1,499,416)
Futures Contracts (714,917) (417,481) (13,559,141) (2,162,534)
------------- ------------- --------------- -------------
Total Net Realized Gain (Loss) (4,532,617) (603,284) (30,670,878) (3,648,502)
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (3,178,849) 64,715 (6,698,290) 118,550
Equity Index Swaps (377,074) (18,490) 600,335 (454,992)
Futures Contracts (287,041) (14,988) (1,027,833) 2,402
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation (Depreciation) (3,842,964) 31,237 (7,125,788) (334,040)
------------- ------------- --------------- -------------
Net Gain (Loss) on Investments (8,375,581) (572,047) (37,796,666) (3,982,542)
------------- ------------- --------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (8,544,347) $ (588,073) $ (38,369,216) $ (4,137,292)
============= ============= =============== =============
U.S. LARGE-CAP LARGE-CAP
GOVERNEMENT JUNO EUROPE JAPAN
BOND FUND FUND FUND FUND
------------- ------------- --------------- -------------
INVESTMENT INCOME
Interest (Note 1) $ 2,345,404 $ -- $ 155,230 $ 468,243
Interest from Securities Lending, net (Note 9) -- -- -- --
Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- -- --
Other Income -- -- 299 --
------------- ------------- --------------- -------------
Total Income 2,345,404 -- 155,529 468,243
------------- ------------- --------------- -------------
EXPENSES
Advisory Fees (Note 4) 238,652 -- 123,018 383,185
Transfer Agent and Administrative Fees (Note 4) 95,461 3,246,843 34,172 106,440
Distribution & Service Fees (Note 4):
Advisor Class 104,255 287,738 -- --
A-Class 252 108,297 66 222
C-Class 42,182 4,088,473 12,610 31,837
H-Class -- -- 30,953 98,259
Accounting Fees (Note 4) 47,730 558,372 13,669 42,576
Registration Fees 17,606 468,662 9,917 21,510
Trustees' Fees 1,138 33,318 570 1,519
Custodian Fees 11,466 2,860 3,112 10,048
Printing Expenses 14,779 441,568 8,377 18,813
Miscellaneous 30,979 758,032 (1,205) 11,029
------------- ------------- --------------- -------------
Total Expenses 604,500 9,994,163 235,259 725,438
------------- ------------- --------------- -------------
Net Investment Income (Loss) 1,740,904 (9,994,163) (79,730) (257,195)
============= ============= =============== =============
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,960,055) (14,275,330) -- 119
Equity Index Swaps -- -- (3,825,899) (26,676,312)
Futures Contracts 727,932 -- 27,785 (418,063)
------------- ------------- --------------- -------------
Total Net Realized Gain (Loss) (1,232,123) (14,275,330) (3,798,114) (27,094,256)
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 3,812,721 (99,440,793) -- --
Equity Index Swaps -- -- 1,681,035 (13,208,988)
Futures Contracts 631,641 -- -- (1,841,140)
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation (Depreciation) 4,444,362 (99,440,793) 1,681,035 (15,050,128)
------------- ------------- --------------- -------------
Net Gain (Loss) on Investments 3,212,239 (113,716,123) (2,117,079) (42,144,384)
------------- ------------- --------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 4,953,143 $(123,710,286) $ (2,196,809) $ (42,401,579)
============= ============= =============== =============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 75
STATEMENTS OF OPERATIONS (UNAUDITED)(CONCLUDED)
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
------------- ------------- --------------- -------------
INVESTMENT INCOME
Interest (Note 1) $ 3,646 $ 1,917 $ 3,001 $ 1,573
Interest from Securities Lending, net (Note 9) 939 118 159 1,744
Dividends, Net of Foreign Tax Withheld* (Note 1) 283,962 177,307 452,733 92,745
Other Income -- -- -- --
------------- ------------- --------------- -------------
Total Income 288,547 179,342 455,893 96,062
------------- ------------- --------------- -------------
EXPENSES
Advisory Fees (Note 4) 166,887 87,021 183,102 96,463
Transfer Agent and Administrative Fees (Note 4) 55,629 29,007 61,034 32,154
Distribution & Service Fees (Note 4):
Advisor Class -- -- -- --
A-Class 1 -- -- --
C-Class 6,543 9,620 8,933 4,125
H-Class 53,992 26,602 58,801 31,123
Accounting Fees (Note 4) 22,251 11,603 24,414 12,862
Registration Fees 4,227 3,090 4,861 2,606
Trustees' Fees 470 245 402 260
Custodian Fees 5,992 4,773 6,236 4,332
Printing Expenses 4,711 2,886 4,876 3,181
Miscellaneous 20,843 9,471 23,130 11,346
------------- ------------- --------------- -------------
Total Expenses 341,546 184,318 375,789 198,452
------------- ------------- --------------- -------------
Less Institutional Class Expense Reimbursed
by Advisor (Note 4 ) -- -- -- --
Less Expenses Waived by Servicer -- -- -- --
Less Expenses Waived by Distributor
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
Total Waived Expenses -- -- -- --
------------- ------------- --------------- -------------
Net Expenses 341,546 184,318 375,789 198,452
------------- ------------- --------------- -------------
Net Investment Income (Loss) (52,999) (4,976) 80,104 (102,390)
============= ============= =============== =============
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Loss on:
Investment Securities (4,689,475) (2,364,135) (3,073,760) (2,875,615)
Futures Contracts (6,780) -- -- --
------------- ------------- --------------- -------------
Total Net Realized Loss (4,696,255) (2,364,135) (3,073,760) (2,875,615)
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation on:
Investment Securities 5,290,128 2,452,832 4,193,814 2,897,628
------------- ------------- --------------- -------------
Net Change in Unrealized Appreciation 5,290,128 2,452,832 4,193,814 2,897,628
------------- ------------- --------------- -------------
Net Gain (Loss) on Investments 593,873 88,697 1,120,054 22,013
------------- ------------- --------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 540,874 $ 83,721 $ 1,200,158 $ (80,377)
============= ============= =============== =============
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $0, $0, $0, AND $0, RESPECTIVELY.
See Notes to Financial Statements.
76 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
Period Ended September 30, 2004
- --------------------------------------------------------------------------------
U.S.
MID-CAP LARGE-CAP GOVERNMENT
GROWTH GROWTH MONEY
FUND FUND MARKET FUND
------------- ------------- ---------------
INVESTMENT INCOME
Interest (Note 1) $ 1,335 $ 753 $ 9,840,904
Interest from Securities Lending, net (Note 9) 157 53 9,541
Dividends, Net of Foreign Tax Withheld* (Note 1) 39,496 114,553 --
Other Income -- -- 1,444
------------- ------------- ---------------
Total Income 40,988 115,359 9,851,889
------------- ------------- ---------------
EXPENSES
Advisory Fees (Note 4) 41,843 57,795 4,064,097
Transfer Agent and Administrative Fees (Note 4) 13,948 19,265 1,625,639
Distribution & Service Fees (Note 4):
Advisor Class -- -- 621,985
A-Class -- -- 3,058
C-Class 3,997 6,101 825,174
H-Class 12,948 17,739 --
Accounting Fees (Note 4) 5,579 7,706 412,597
Registration Fees 834 2,191 366,834
Trustees' Fees 109 190 23,638
Custodian Fees 1,416 2,906 189,223
Printing Expenses 1,039 2,513 323,521
Miscellaneous 5,598 5,423 347,737
------------- ------------- ---------------
Total Expenses 87,311 121,829 8,803,503
------------- ------------- ---------------
Less Institutional Class Expense Reimbursed
by Advisor (Note 4 ) -- -- (25,896)
Less Expenses Waived by Servicer -- -- (62,702)
Less Expenses Waived by Distributor
Advisor Class -- -- (283,204)
A-Class -- -- (23)
C-Class -- -- (569,947)
------------- ------------- ---------------
Total Waived Expenses -- -- (941,772)
------------- ------------- ---------------
Net Expenses 87,311 121,829 7,861,731
------------- ------------- ---------------
Net Investment Income (Loss) (46,323) (6,470) 1,990,158
============= ============= ===============
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Loss on:
Investment Securities (1,643,659) (611,760) --
Futures Contracts -- -- --
------------- ------------- ---------------
Total Net Realized Loss (1,643,659) (611,760) --
------------- ------------- ---------------
Net Change in Unrealized Appreciation on:
Investment Securities 920,583 231,312 --
------------- ------------- ---------------
Net Change in Unrealized Appreciation 920,583 231,312 --
------------- ------------- ---------------
Net Gain (Loss) on Investments (723,076) (380,448) --
------------- ------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (769,399) $ (386,918) $ 1,990,158
============= ============= ===============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 77
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,
2004+ 2004 2004+ 2004
------------- -------------- --------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (1,018,830) $ 340,080 $ (1,542,703) $ (2,380,206)
Net Realized Gain (Loss) on Investments (8,821,694) 90,383,820 (17,529,547) (151,683,423)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (4,642,899) 4,757,494 6,288,907 (29,214,083)
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets from Operations (14,483,423) 95,481,394 (12,783,343) (183,277,712)
------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (40,957) -- --
Advisor Class -- (10,891) -- --
A-Class -- -- -- --
C-Class -- (7,164) -- --
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- (13,522,152)
Advisor Class -- -- -- (1,661,923)
A-Class -- -- -- --
C-Class -- -- -- (1,341,391)
H-Class -- -- -- --
------------- -------------- --------------- --------------
Total Distributions to Shareholders -- (59,012) -- (16,525,466)
============= ============== =============== ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 744,076,468 1,416,342,537 985,058,074 2,501,275,661
Advisor Class* 183,942,818 306,125,216 147,866,778 266,048,066
A-Class** 10,666,820 1,000 8,597,763 1,000
C-Class*** 85,426,717 192,486,411 112,157,262 295,353,504
H-Class*** -- -- -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- 38,795 -- 11,922,468
Advisor Class* -- 10,397 -- 1,392,275
A-Class** -- -- -- --
C-Class*** -- 6,469 -- 1,108,788
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class (746,792,908) (1,428,901,726) (860,659,745) (2,460,564,864)
Advisor Class* (171,560,172) (305,616,613) (130,216,655) (244,455,917)
A-Class** (2,206,370) -- (2,289,035) --
C-Class*** (78,551,954) (180,456,147) (105,805,377) (256,929,090)
H-Class*** -- -- -- --
============= ============== =============== ==============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 25,001,419 36,339 154,709,065 115,151,891
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets 10,517,996 95,458,721 141,925,722 (84,651,287)
NET ASSETS--BEGINNING OF PERIOD 266,167,223 170,708,502 444,174,286 528,825,573
------------- -------------- --------------- --------------
NET ASSETS--END OF PERIOD $ 276,685,219 $ 266,167,223 $ 586,100,008 $ 444,174,286
============= ============== =============== ==============
OTC FUND
-------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (4,285,775) $ (9,083,636)
Net Realized Gain (Loss) on Investments 6,167,744 50,732,674
Net Change in Unrealized Appreciation (Depreciation)
on Investments (35,164,654) 218,083,908
------------- --------------
Net Increase (Decrease) in Net Assets from Operations (33,282,685) 259,732,946
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
Realized Gain on Investment
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
------------- --------------
Total Distributions to Shareholders -- --
============= ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 721,610,586 1,663,377,353
Advisor Class* 116,339,285 145,760,607
A-Class** 1,741,525 1,000
C-Class*** 65,410,703 156,778,878
H-Class*** -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- --
Advisor Class* -- --
A-Class** -- --
C-Class*** -- --
H-Class*** -- --
COST OF SHARES REDEEMED
Investor Class (740,384,926) (1,704,150,398)
Advisor Class* (140,659,554) (142,951,655)
A-Class** (829,949) --
C-Class*** (66,082,625) (154,712,316)
H-Class*** -- --
============= ==============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (42,854,955) (35,896,531)
------------- --------------
Net Increase (Decrease) in Net Assets (76,137,640) 223,836,415
NET ASSETS--BEGINNING OF PERIOD 930,005,322 706,168,907
------------- --------------
NET ASSETS--END OF PERIOD $ 853,867,682 $ 930,005,322
============= ==============
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003 -- ARKTOS FUND ADVISOR
CLASS.
** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004 -- NOVA FUND A-CLASS,
URSA FUND A-CLASS, OTC FUND A-CLASS, ARKTOS FUND A-CLASS, MEDIUS FUND
A-CLASS, INVERSE MID-CAP FUND A-CLASS, AND MEKROS FUND A-CLASS.
*** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- INVERSE MID-CAP
FUND C-CLASS AND H-CLASS.
+ Unaudited
See Notes to Financial Statements.
78 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ARKTOS FUND MEDIUS FUND
------------------------------- --------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- -------------- --------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (792,453) $ (908,880) $ (168,766) $ (424,768)
Net Realized Gain (Loss) on Investments (4,298,011) (75,225,824) (4,532,617) 15,367,682
Net Change in Unrealized Appreciation (Depreciation)
on Investments (5,551,965) 2,089,842 (3,842,964) 6,114,604
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets from Operations (10,642,429) (74,044,862) (8,544,347) 21,057,518
------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
------------- -------------- --------------- --------------
Total Distributions to Shareholders -- -- -- --
============= ============== =============== ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 569,450,091 1,242,912,907 -- --
Advisor Class* 75,246,057 28,360,837 -- --
A-Class** 5,884,761 1,000 402,268 3,858
C-Class*** 104,292,982 150,430,699 67,579,333 139,180,601
H-Class*** -- -- 476,191,672 902,750,247
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- -- --
C-Class*** -- -- -- --
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class (532,242,776) (1,109,906,486) -- --
Advisor Class* (65,770,747) (10,056,568) -- --
A-Class** (2,122,834) -- (150,212) --
C-Class*** (115,664,685) (114,441,552) (69,679,744) (134,104,779)
H-Class*** -- -- (501,729,064) (866,491,167)
============= ============== =============== ==============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 39,072,849 187,300,837 (27,385,747) 41,338,760
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets 28,430,420 113,255,975 (35,930,094) 62,396,278
NET ASSETS--BEGINNING OF PERIOD 262,344,648 149,088,673 82,640,500 20,244,222
------------- -------------- --------------- --------------
NET ASSETS--END OF PERIOD $ 290,775,068 $ 262,344,648 $ 46,710,406 $ 82,640,500
============= ============== =============== ==============
INVERSE
MID-CAP FUND MEKROS FUND
------------------------------- --------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- -------------- --------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (16,026) $ (3,411) $ (572,550) $ (1,353,110)
Net Realized Gain (Loss) on Investments (603,284) (94,164) (30,670,878) 63,829,139
Net Change in Unrealized Appreciation (Depreciation)
on Investments 31,237 (73,227) (7,125,788) 13,493,646
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets from Operations (588,073) (170,802) (38,369,216) 75,969,675
------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
------------- -------------- --------------- --------------
Total Distributions to Shareholders -- -- -- --
============= ============== =============== ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 403,472 1,000 2,599,980 3,857
C-Class*** 12,106,704 510,083 126,575,531 413,199,562
H-Class*** 80,197,113 24,015,087 1,551,782,703 2,576,731,176
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- -- --
C-Class*** -- -- -- --
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** (243,715) -- (1,614,645) --
C-Class*** (12,031,288) (366,630) (149,260,879) (394,089,160)
H-Class*** (76,721,687) (21,172,270) (1,569,328,562) (2,494,270,646)
============= ============== =============== ==============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 3,710,599 2,987,270 (39,245,872) 101,574,789
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets 3,122,526 2,816,468 (77,615,088) 177,544,464
NET ASSETS--BEGINNING OF PERIOD 2,816,468 -- 223,175,161 45,630,697
------------- -------------- --------------- --------------
NET ASSETS--END OF PERIOD $ 5,938,994 $ 2,816,468 $ 145,560,073 $ 223,175,161
============= ============== =============== ==============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 79
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE U.S. GOVERNMENT
SMALL-CAP FUND BOND FUND
------------------------------- --------------------------------
PERIOD PERIOD PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- -------------- --------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (154,750) $ (8,012) $ 1,740,904 $ 2,137,637
Net Realized Gain (Loss) on Investments (3,648,502) (585,493) (1,232,123) (2,154,408)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (334,040) (203,687) 4,444,362 2,247,394
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets from Operations (4,137,292) (797,192) 4,953,143 2,230,623
------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- (913,156) (1,740,970)
Advisor Class -- -- (700,719) (276,878)
A-Class -- -- (3,792) --
C-Class -- -- (123,238) (119,789)
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
------------- -------------- --------------- --------------
Total Distributions to Shareholders -- -- (1,740,905) (2,137,637)
============= ============== =============== ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 353,152,652 937,862,658
Advisor Class* -- -- 184,369,111 166,588,132
A-Class** 2,145,200 1,000 1,011,701 1,000
C-Class*** 79,901,772 17,865,104 61,569,666 71,640,020
H-Class*** 452,531,067 50,824,029 -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- -- 849,180 1,619,190
Advisor Class* -- -- 700,461 276,673
A-Class** -- -- 3,784 --
C-Class*** -- -- 117,712 112,328
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- (347,657,965) (966,933,885)
Advisor Class* -- -- (119,409,468) (119,380,064)
A-Class** (1,901,823) -- (671,327) --
C-Class*** (61,501,948) (17,257,781) (59,542,238) (69,703,957)
H-Class*** (437,645,912) (45,088,415) -- --
============= ============== =============== ==============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 33,528,356 6,343,937 74,493,269 22,082,095
------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets 29,391,064 5,546,745 77,705,507 22,175,081
NET ASSETS--BEGINNING OF PERIOD 5,546,745 -- 75,708,021 53,532,940
------------- -------------- --------------- --------------
NET ASSETS--END OF PERIOD $ 34,937,809 $ 5,546,745 $ 153,413,528 $ 75,708,021
============= ============== =============== ==============
JUNO FUND
-------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
-------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (9,994,163) $ (5,820,858)
Net Realized Gain (Loss) on Investments (14,275,330) 17,200,721
Net Change in Unrealized Appreciation (Depreciation)
on Investments (99,440,793) (88,008,612)
-------------- --------------
Net Increase (Decrease) in Net Assets from Operations (123,710,286) (76,628,749)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
Realized Gain on Investment
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
-------------- --------------
Total Distributions to Shareholders -- --
============== ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 2,195,558,009 2,756,117,189
Advisor Class* 214,722,077 109,156,186
A-Class** 143,471,514 5,056,682
C-Class*** 656,495,552 618,908,385
H-Class*** -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- --
Advisor Class* -- --
A-Class** -- --
C-Class*** -- --
H-Class*** -- --
COST OF SHARES REDEEMED
Investor Class (1,435,112,090) (1,937,672,854)
Advisor Class* (123,358,246) (54,704,285)
A-Class** (19,349,868) --
C-Class*** (214,556,783) (164,593,541)
H-Class*** -- --
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,417,870,165 1,332,267,762
-------------- --------------
Net Increase (Decrease) in Net Assets 1,294,159,879 1,255,639,013
NET ASSETS--BEGINNING OF PERIOD 1,445,566,250 189,927,237
-------------- --------------
NET ASSETS--END OF PERIOD $2,739,726,129 $1,445,566,250
============== ==============
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003 -- U.S. GOVERNMENT
BOND FUND ADVISOR CLASS, AND JUNO FUND ADVISOR CLASS.
** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004 -- INVERSE
SMALL-CAP FUND A-CLASS, U.S. GOVERNMENT BOND FUND A-CLASS, JUNO FUND
A-CLASS, LARGE-CAP EUROPE FUND A-CLASS, AND LARGE-CAP JAPAN FUND
A-CLASS; SEPTEMBER 1, 2004 -- SMALL-CAP VALUE FUND A-CLASS, AND MID-CAP
VALUE FUND A-CLASS.
*** SINCE THE COMMENCEMENT OF OPERATIONS; FEBRUARY 20, 2004 -- INVERSE
SMALL-CAP FUND C-CLASS AND H-CLASS, SMALL-CAP VALUE FUND C-CLASS AND
H-CLASS, AND MID-CAP VALUE FUND C-CLASS AND H-CLASS.
+ Unaudited
See Notes to Financial Statements.
80 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LARGE-CAP LARGE-CAP
EUROPE FUND JAPAN FUND
------------------------------ --------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- ------------- --------------- --------------
FROM OPERATIONS
Net Investment Income (Loss) $ (79,730) $ (267,373) $ (257,195) $ (342,111)
Net Realized Gain (Loss) on Investments (3,798,114) 10,115,575 (27,094,256) 6,626,890
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,681,035 (1,166,723) (15,050,128) 13,605,279
-------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets from Operations (2,196,809) 8,681,479 (42,401,579) 19,890,058
-------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- (121,876) -- (22,026)
H-Class -- (3,323,463) -- (331,142)
-------------- -------------- --------------- --------------
Total Distributions to Shareholders -- (3,445,339) -- (353,168)
============== ============== =============== ==============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 133,205 1,000 219,121 54,619
C-Class*** 31,762,233 41,151,762 15,021,418 17,100,604
H-Class*** 130,065,042 372,420,819 354,061,584 635,111,524
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- -- --
C-Class*** -- 119,553 -- 18,857
H-Class*** -- 3,275,637 -- 293,399
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** (18,046) -- (51,568) --
C-Class*** (31,889,381) (41,547,262) (12,618,099) (12,059,612)
H-Class*** (131,921,074) (349,399,148) (456,651,725) (479,360,611)
============== ============== =============== ==============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (1,868,021) 26,022,361 (100,019,269) 161,158,780
-------------- -------------- --------------- --------------
Net Increase (Decrease) in Net Assets (4,064,830) 31,258,501 (142,420,848) 180,695,670
NET ASSETS--BEGINNING OF PERIOD 37,913,736 6,655,235 183,387,551 2,691,881
-------------- -------------- --------------- --------------
NET ASSETS--END OF PERIOD $ 33,848,906 $ 37,913,736 $ 40,966,703 $ 183,387,551
============== ============== =============== ==============
SMALL-CAP MID-CAP
VALUE FUND VALUE FUND
------------------------------ --------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- ------------- --------------- -------------
FROM OPERATIONS
Net Investment Income (Loss) $ (52,999) $ (3,043) $ (4,976) $ 2,948
Net Realized Gain (Loss) on Investments (4,696,255) (476,796) (2,364,135) (443,253)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 5,290,128 702,036 2,452,832 333,523
------------- ------------- --------------- -------------
Net Increase (Decrease) in Net Assets from Operations 540,874 222,197 83,721 (106,782)
------------- ------------- --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
------------- ------------- --------------- -------------
Total Distributions to Shareholders -- -- -- --
============= ============= =============== =============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 18,155 -- 1,000 --
C-Class*** 16,045,354 5,578,690 30,127,920 5,091,595
H-Class*** 344,331,415 49,997,813 213,012,004 56,066,523
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- -- --
C-Class*** -- -- -- --
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- -- --
C-Class*** (16,320,718) (3,436,117) (28,867,779) (4,406,697)
H-Class*** (248,405,537) (30,256,277) (181,903,874) (37,871,247)
============= ============= =============== =============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 95,668,669 21,884,109 32,369,271 18,880,174
------------- ------------- --------------- -------------
Net Increase (Decrease) in Net Assets 96,209,543 22,106,306 32,452,992 18,773,392
NET ASSETS--BEGINNING OF PERIOD 22,106,306 -- 18,773,392 --
------------- ------------- --------------- -------------
NET ASSETS--END OF PERIOD $ 118,315,849 $ 22,106,306 $ 51,226,384 $ 18,773,392
============= ============= =============== =============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 81
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
LARGE-CAP SMALL-CAP
VALUE FUND GROWTH FUND
----------------------------- ----------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- ------------ ------------- -----------
FROM OPERATIONS
Net Investment Income (Loss) $ 80,104 $ 3,279 $ (102,390) $ (1,601)
Net Realized Gain (Loss) on Investments (3,073,760) (470,175) (2,875,615) (38,944)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 4,193,814 109,941 2,897,628 117,752
------------- ------------ ------------- -----------
Net Increase (Decrease) in Net Assets from Operations 1,200,158 (356,955) (80,377) 77,207
------------- ------------ ------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Institutional Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Institutional Class -- -- -- --
------------- ------------ ------------- -----------
Total Distributions to Shareholders -- -- -- --
============= ============ ============= ===========
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* 1,000 -- 1,000 --
C-Class** 24,866,434 6,863,402 23,883,524 4,370,288
H-Class** 332,751,415 42,220,344 279,243,281 4,806,391
Institutional Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* -- -- -- --
C-Class** -- -- -- --
H-Class** -- -- -- --
Institutional Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* -- -- -- --
C-Class** (24,842,634) (4,267,751) (22,258,902) (1,918,498)
H-Class** (228,560,859) (33,752,236) (192,371,937) (2,285,917)
Institutional Class -- -- -- --
============= ============ ============= ===========
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 104,215,356 11,063,759 88,496,966 4,972,264
------------- ------------ ------------- -----------
Net Increase (Decrease) in Net Assets 105,415,514 10,706,804 88,416,589 5,049,471
NET ASSETS--BEGINNING OF PERIOD 10,706,804 -- 5,049,471 --
------------- ------------ ------------- -----------
NET ASSETS--END OF PERIOD $ 116,122,318 $ 10,706,804 $ 93,466,060 $ 5,049,471
============= ============ ============= ===========
MID-CAP
GROWTH FUND
-----------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
------------- ------------
FROM OPERATIONS
Net Investment Income (Loss) $ (46,323) $ (1,082)
Net Realized Gain (Loss) on Investments (1,643,659) (11,115)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 920,583 31,820
------------- ------------
Net Increase (Decrease) in Net Assets from Operations (769,399) 19,623
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
Institutional Class -- --
Realized Gain on Investment
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
Institutional Class -- --
------------- ------------
Total Distributions to Shareholders -- --
============= ============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- --
Advisor Class -- --
A-Class* 1,000 --
C-Class** 12,805,655 4,563,742
H-Class** 121,015,126 3,435,495
Institutional Class -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class** -- --
H-Class** -- --
Institutional Class -- --
COST OF SHARES REDEEMED
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class** (12,404,598) (3,397,291)
H-Class** (64,582,325) (2,824,780)
Institutional Class -- --
============= ============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 56,834,858 1,777,166
------------- ------------
Net Increase (Decrease) in Net Assets 56,065,459 1,796,789
NET ASSETS--BEGINNING OF PERIOD 1,796,789 --
------------- ------------
NET ASSETS--END OF PERIOD 57,862,248 $ 1,796,789
============= ============
* SINCE THE COMMENCEMENT OF OPERATIONS MARCH 31, 2004 -- U.S. GOVERNMENT MONEY
MARKET FUND A-CLASS, SEPTEMBER 1, 2004 -- LARGE-CAP VALUE FUND A-CLASS;
SMALL-CAP GROWTH FUND A-CLASS, MID-CAP GROWTH FUND A-CLASS, AND LARGE-CAP
GROWTH FUND A-CLASS.
** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- LARGE-CAP VALUE
FUND C-CLASS AND H-CLASS, SMALL-CAP GROWTH FUND C-CLASS AND H-CLASS,
MID-CAP GROWTH FUND C-CLASS AND H-CLASS, AND LARGE-CAP GROWTH FUND C-CLASS
AND H-CLASS.
+ UNAUDITED
See Notes to Financial Statements.
82 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LARGE-CAP U.S. GOVERNMENT
GROWTH FUND MONEY MARKET FUND
----------------------------- --------------------------------
PERIOD PERIOD PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------- ------------ -------------- ---------------
FROM OPERATIONS
Net Investment Income (Loss) $ (6,470) $ (231) $ 1,990,158 $ 2,393,710
Net Realized Gain (Loss) on Investments (611,760) (4,523) -- 1,894
Net Change in Unrealized Appreciation (Depreciation)
on Investments 231,312 23,747 -- --
------------- ------------ -------------- ---------------
Net Increase (Decrease) in Net Assets from Operations (386,918) 18,993 1,990,158 2,395,604
------------- ------------ -------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- (1,778,804) (2,074,169)
Advisor Class -- -- (38,828) (13,035)
A-Class -- -- (3,156) --
C-Class -- -- (4,538) (9,592)
H-Class -- -- -- --
Institutional Class -- -- (164,832) (296,914)
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
Institutional Class -- -- -- --
------------- ------------ -------------- ---------------
Total Distributions to Shareholders -- -- (1,990,158) (2,393,710)
============= ============ ============== ===============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 9,638,090,374 20,632,372,433
Advisor Class -- -- 1,818,601,048 4,386,273,780
A-Class* 1,000 -- 7,843,812 1,000
C-Class** 27,986,649 907,686 1,336,870,248 3,269,540,461
H-Class** 208,851,624 2,068,170 -- --
Institutional Class -- -- 1,000 --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- 1,748,873 2,043,352
Advisor Class -- -- 38,402 13,574
A-Class* -- -- 3,098 --
C-Class** -- -- 4,158 8,818
H-Class** -- -- -- --
Institutional Class -- -- -- 28,440
COST OF SHARES REDEEMED
Investor Class -- -- (9,547,221,202) (20,796,030,723)
Advisor Class -- -- (1,820,253,258) (4,324,201,196)
A-Class* -- -- (3,721,347) --
C-Class** (27,143,512) (916,545) (1,299,397,941) (3,340,221,448)
H-Class** (204,726,686) (1,285,366) -- --
Institutional Class -- -- -- (10,036,610)
============= ============ ============== ===============
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 4,969,075 773,945 132,607,265 (180,208,119)
------------- ------------ -------------- ---------------
Net Increase (Decrease) in Net Assets 4,582,157 792,938 132,607,265 (180,206,225)
NET ASSETS--BEGINNING OF PERIOD 792,938 -- 1,487,735,902 1,667,942,127
------------- ------------ -------------- ---------------
NET ASSETS--END OF PERIOD $ 5,375,095 $ 792,938 $1,620,343,167 $ 1,487,735,902
============= ============ ============== ===============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 83
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
------------ ------------ ---------------- ---------------- ----------------
NOVA FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ $ 24.12 $ (.06) $ (.32) $ (.38) $ --
March 31, 2004 15.54 .07 8.51 8.58 --
March 31, 2003 25.56 .08 (10.10) (10.02) --
March 31, 2002 26.85 .12 (1.28) (1.16) (.13)
March 31, 2001 41.93 .33 (15.41) (15.08) --
March 31, 2000 34.87 .47 6.60 7.07 (.01)
NOVA FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 23.42 (.11) (.32) (.43) --
March 31, 2004 15.17 (.05) 8.30 8.25 --
March 31, 2003 25.11 (.03) (9.91) (9.94) --
March 31, 2002 26.52 (.01) (1.27) (1.28) (.13)
March 31, 2001 41.63 .16 (15.27) (15.11) --
March 31, 2000 34.78 .31 6.55 6.86 (.01)
NOVA FUND -- A-CLASS
SEPTEMBER 30, 2004@ 23.42 (.08) (.32) (.40) --
March 31, 2004 * 23.42 -- -- -- --
NOVA FUND -- C-CLASS
SEPTEMBER 30, 2004@ 23.36 (.17) (.32) (.49) --
March 31, 2004 15.20 (.12) 8.28 8.16 --
March 31, 2003 25.28 (.08) (10.00) (10.08) --
March 31, 2002 26.84 (.18) (1.25) (1.43) (.13)
March 31, 2001 * 27.18 (.01) (.33) (.34) --
URSA FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 9.17 (.02) .04 .02 --
March 31, 2004 13.06 (.04) (3.45) (3.49) --
March 31, 2003 10.45 .01 2.67 2.68 (.07)
March 31, 2002 10.43 .16 (.10) .06 (.04)
March 31, 2001 7.68 .40 2.41 2.81 (.06)
March 31, 2000 8.66 .32 (1.24) (.92) (.06)
URSA FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 8.87 (.04) .04 -- --
March 31, 2004 12.70 (.09) (3.34) (3.43) --
March 31, 2003 10.22 (.06) 2.61 2.55 (.07)
March 31, 2002 10.26 .09 (.09) -- (.04)
March 31, 2001 7.61 .43 2.28 2.71 (.06)
March 31, 2000 8.62 .30 (1.25) (.95) (.06)
URSA FUND -- A-CLASS
SEPTEMBER 30, 2004@ 8.87 (.03) .03 -- --
March 31, 2004 * 8.87 -- -- -- --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- ---------------- ---------------- ----------------
NOVA FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ $ -- $ -- $ (.38) $ 23.74 (1.58)%
March 31, 2004 -- -- 8.58 24.12 55.25%
March 31, 2003 -- -- (10.02) 15.54 (39.20)%
March 31, 2002 -- (.13) (1.29) 25.56 (4.36)%
March 31, 2001 -- -- (15.08) 26.85 (35.96)%
March 31, 2000 -- (.01) 7.06 41.93 20.29%
NOVA FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ -- -- (.43) 22.99 (1.84)%
March 31, 2004 -- -- 8.25 23.42 54.42%
March 31, 2003 -- -- (9.94) 15.17 (39.59)%
March 31, 2002 -- (.13) (1.41) 25.11 (4.87)%
March 31, 2001 -- -- (15.11) 26.52 (36.30)%
March 31, 2000 -- (.01) 6.85 41.63 19.74%
NOVA FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- (.40) 23.02 (1.71)%
March 31, 2004 * -- -- -- 23.42 0.00%
NOVA FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (.49) 22.87 (2.10)%
March 31, 2004 -- -- 8.16 23.36 53.72%
March 31, 2003 -- -- (10.08) 15.20 (39.87)%
March 31, 2002 -- (.13) (1.56) 25.28 (5.37)%
March 31, 2001 * -- -- (.34) 26.84 (1.25)%
URSA FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ -- -- .02 9.19 0.22%
March 31, 2004 (.40) (.40) (3.89) 9.17 (26.90)%
March 31, 2003 -- (.07) 2.61 13.06 25.65%
March 31, 2002 -- (.04) .02 10.45 0.60%
March 31, 2001 -- (.06) 2.75 10.43 36.68%
March 31, 2000 -- (.06) (.98) 7.68 (10.64)%
URSA FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ -- -- -- 8.87 0.00%
March 31, 2004 (.40) (.40) (3.83) 8.87 (27.19)%
March 31, 2003 -- (.07) 2.48 12.70 24.95%
March 31, 2002 -- (.04) (.04) 10.22 0.02%
March 31, 2001 -- (.06) 2.65 10.26 35.70%
March 31, 2000 -- (.06) (1.01) 7.61 (11.03)%
URSA FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- -- 8.87 0.00%
March 31, 2004 * -- -- -- 8.87 0.00%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
----------- -------- ----------- --------- ------------
NOVA FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 1.25%**++ 1.25%**++ (0.48)%** 263% $ 174,048
March 31, 2004 1.25%++ 1.25%++ 0.35% 540% 187,051
March 31, 2003 1.27%++ 1.27%++ 0.44% 603% 130,951
March 31, 2002 1.16%++ 1.16%++ 0.44% 401% 222,251
March 31, 2001 1.34% 1.33% 0.89% 117% 251,333
March 31, 2000 1.18% 1.18% 1.26% 311% 748,147
NOVA FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.74%**++ 1.74%**++ (0.97)%** 263% 55,976
March 31, 2004 1.74%++ 1.74%++ (0.24)% 540% 46,405
March 31, 2003 1.77%++ 1.77%++ (0.17)% 603% 27,130
March 31, 2002 1.55%++ 1.55%++ (0.02)% 401% 59,375
March 31, 2001 1.87% 1.87% 0.45% 117% 38,184
March 31, 2000 1.71% 1.70% 0.87% 311% 113,248
NOVA FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.50%**++ 1.50%**++ (0.73)%** 263% 8,378
March 31, 2004 * 0.00%**++# 0.00%**++# 0.00%** 540% 1
NOVA FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.24%**++ 2.24%**++ (1.47)%** 263% 38,283
March 31, 2004 2.26%++ 2.26%++ (0.56)% 540% 32,710
March 31, 2003 2.28%++ 2.28%++ (0.46)% 603% 12,627
March 31, 2002 2.27%++ 2.27%++ (0.72)% 401% 10,355
March 31, 2001 * 1.86%** 1.77%** (0.98)%** 117% 111
URSA FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 1.39%**++ 1.39%**++ (0.47)%** -- 467,765
March 31, 2004 1.38%++ 1.38%++ (0.37)% -- 353,496
March 31, 2003 1.41%++ 1.41%++ 0.06% -- 471,600
March 31, 2002 1.31%++ 1.31%++ 1.56% -- 214,498
March 31, 2001 1.37%++ 1.37%++ 4.69% -- 222,939
March 31, 2000 1.32% 1.31% 3.81% -- 288,218
URSA FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.88%**++ 1.88%**++ (0.96)%** -- 61,204
March 31, 2004 1.87%++ 1.87%++ (0.86)% -- 45,073
March 31, 2003 1.89%++ 1.89%++ (0.45)% -- 39,686
March 31, 2002 1.85%++ 1.85%++ 0.87% -- 7,036
March 31, 2001 1.86%++ 1.86%++ 4.92% -- 2,860
March 31, 2000 1.84% 1.83% 3.51% -- 4,553
URSA FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.64%**++ 1.64%**++ (0.72)%** -- 6,199
March 31, 2004 * 0.00%**++# 0.00%**++# 0.00%** -- 1
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 14, 2001 -- NOVA FUND C-CLASS;
MARCH 31, 2004 -- NOVA FUND A-CLASS AND URSA FUND A-CLASS.
** 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.
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR
ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
See Notes to Financial Statements.
84 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
----------- ---------- -------------- ---------------- --------------
URSA FUND -- C-CLASS
SEPTEMBER 30, 2004@ $ 8.89 $ (.07) $ .04 $ (.03) $ --
March 31, 2004 12.80 (.14) (3.37) (3.51) --
March 31, 2003 10.35 (.12) 2.64 2.52 (.07)
March 31, 2002 10.43 (.03) (.01) (.04) (.04)
March 31, 2001 * 10.29 .01 .13 .14 --
OTC FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 9.73 (.04) (.20) (.24) --
March 31, 2004 7.02 (.09) 2.80 2.71 --
March 31, 2003 10.16 (.08) (3.06) (3.14) --
March 31, 2002 11.19 (.11) (.92) (1.03) --
March 31, 2001 32.40 (.24) (20.80) (21.04) --
March 31, 2000 ++ 15.90 (.22) 16.88 16.66 --
OTC FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 9.46 (.07) (.19) (.26) --
March 31, 2004 6.85 (.13) 2.74 2.61 --
March 31, 2003 9.97 (.11) (3.01) (3.12) --
March 31, 2002 11.04 (.16) (.91) (1.07) --
March 31, 2001 32.16 (.35) (20.60) (20.95) --
March 31, 2000 ++ 15.86 (.33) 16.78 16.45 --
OTC FUND -- A-CLASS
SEPTEMBER 30, 2004@ 9.46 (.05) (.20) (.25) --
March 31, 2004 * 9.46 -- -- -- --
OTC FUND -- C-CLASS
SEPTEMBER 30, 2004@ 9.41 (.09) (.20) (.29) --
March 31, 2004 6.86 (.18) 2.73 2.55 --
March 31, 2003 10.03 (.14) (3.03) (3.17) --
March 31, 2002 11.20 (.21) (.96) (1.17) --
March 31, 2001 * 11.95 -- (.75) (.75) --
ARKTOS FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 25.69 (.06) .14 .08 --
March 31, 2004 37.79 (.13) (11.97) (12.10) --
March 31, 2003 32.29 7.34 (.70) 6.64 (1.14)
March 31, 2002 35.76 1.01 (4.19) (3.18) (.29)
March 31, 2001 17.45 1.08 17.23 18.31 --
March 31, 2000 ++ 40.20 .75 (23.40) (22.65) (.10)
ARKTOS FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 25.60 (.12) .13 .01 --
March 31, 2004 * 29.97 (.16) (4.21) (4.37) --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- -------------- --------- ----------
URSA FUND -- C-CLASS
September 30, 2004(3) $ -- $ -- $ (.03) $ 8.86 (0.34)%
March 31, 2004 (.40) (.40) (3.91) 8.89 (27.62)%
March 31, 2003 -- (.07) 2.45 12.80 24.35%
March 31, 2002 -- (.04) (.08) 10.35 (0.36)%
March 31, 2001 * -- -- .14 10.43 1.36%
OTC FUND -- INVESTOR CLASS
September 30, 2004@ -- -- (.24) 9.49 (2.47)%
March 31, 2004 -- -- 2.71 9.73 38.60%
March 31, 2003 -- -- (3.14) 7.02 (30.91)%
March 31, 2002 -- -- (1.03) 10.16 (9.20)%
March 31, 2001 (.17) (.17) (21.21) 11.19 (65.19)%
March 31, 2000 ++ (.16) (.16) 16.50 32.40 105.32%
OTC FUND -- ADVISOR CLASS
September 30, 2004@ -- -- (.26) 9.20 (2.75)%
March 31, 2004 -- -- 2.61 9.46 38.10%
March 31, 2003 -- -- (3.12) 6.85 (31.29)%
March 31, 2002 -- -- (1.07) 9.97 (9.69)%
March 31, 2001 (.17) (.17) (21.12) 11.04 (65.40)%
March 31, 2000 ++ (.15) (.15) 16.30 32.16 104.26%
OTC FUND -- A-CLASS
September 30, 2004@ -- -- (.25) 9.21 (2.64)%
March 31, 2004 * -- -- -- 9.46 0.00%
OTC FUND -- C-CLASS
September 30, 2004@ -- -- (.29) 9.12 (3.08)%
March 31, 2004 -- -- 2.55 9.41 37.17%
March 31, 2003 -- -- (3.17) 6.86 (31.61)%
March 31, 2002 -- -- (1.17) 10.03 (10.45)%
March 31, 2001 * -- -- (.75) 11.20 (6.28)%
ARKTOS FUND -- INVESTOR CLASS
September 30, 2004@ -- -- .08 25.77 0.31%
March 31, 2004 -- -- (12.10) 25.69 (32.02)%
March 31, 2003 -- (1.14) 5.50 37.79 20.39%
March 31, 2002 -- (.29) (3.47) 32.29 (8.84)%
March 31, 2001 -- -- 18.31 35.76 104.93%
March 31, 2000 ++ -- (.10) (22.75) 17.45 (56.39)%
ARKTOS FUND -- ADVISOR CLASS
September 30, 2004@ -- -- .01 25.61 0.04%
March 31, 2004 * -- -- (4.37) 25.60 (14.58)%
RATIOS TO
AVERAGE NET ASSETS
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
-------- -------- ---------- --------- -------------
URSA FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.38%**+++ 2.38%**+++ (1.46)%** -- $ 50,932
March 31, 2004 2.39%+++ 2.39%+++ (1.42)% -- 45,604
March 31, 2003 2.40%+++ 2.40%+++ (0.97)% -- 17,540
March 31, 2002 2.47%+++ 2.47%+++ (0.34)% -- 7,007
March 31, 2001 * 2.15%**+++ 2.15%**+++ 3.04%** -- 35
OTC FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 1.22%** 1.22%** (0.90)%** 71% 812,540
March 31, 2004 1.22% 1.22% (0.98)% 139% 858,816
March 31, 2003 1.27% 1.27% (1.08)% 180% 653,999
March 31, 2002 1.08% 1.08% (0.96)% 109% 783,637
March 31, 2001 1.16% 1.16% (1.01)% 228% 1,043,848
March 31, 2000 ++ 1.15% 1.15% (1.01)% 385% 3,762,540
OTC FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.71%** 1.71%** (1.39)%** 71% 28,555
March 31, 2004 1.71% 1.71% (1.47)% 139% 57,535
March 31, 2003 1.76% 1.76% (1.56)% 180% 43,839
March 31, 2002 1.60% 1.60% (1.47)% 109% 20,837
March 31, 2001 1.67% 1.66% (1.50)% 228% 36,836
March 31, 2000 ++ 1.62% 1.61% (1.47)% 385% 113,948
OTC FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.48%** 1.48%** (1.03)%** 71% 875
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 139% 1
OTC FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.21%** 2.21%** (1.90)%** 71% 11,899
March 31, 2004 2.23% 2.23% (1.97)% 139% 13,653
March 31, 2003 2.26% 2.26% (1.98)% 180% 8,331
March 31, 2002 2.24% 2.24% (2.13)% 109% 3,545
March 31, 2001 * 2.37%** 2.09%** (2.03)%** 228% 32
ARKTOS FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 1.40%**+++ 1.40%**+++ (0.48)%** -- 239,332
March 31, 2004 1.40%+++ 1.40%+++ (0.47)% -- 209,994
March 31, 2003 1.42%+++ 1.42%+++ 18.11% -- 146,416
March 31, 2002 1.35%+++ 1.35%+++ 3.16% -- 113,904
March 31, 2001 1.34%+++ 1.33%+++ 6.27% 1,788% 79,028
March 31, 2000 ++ 1.46% 1.46% 2.67% 1,157% 103,160
ARKTOS FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.90%**+++ 1.90%**+++ (0.98)%* -- 26,256
March 31, 2004 * 1.90%**+++ 1.90%**+++ (0.97)%** -- 17,975
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 15, 2001 -- URSA FUND C-CLASS;
MARCH 26, 2001 -- OTC FUND C-CLASS; AUGUST 1, 2003 -- ARKTOS FUND ADVISOR
CLASS; MARCH 31, 2004 -- OTC FUND A-CLASS.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. FOR YEARS AFTER MARCH
31, 2000, PORTFOLIO TURNOVER IS CALCULATED ONLY FOR ARKTOS MASTER PORTFOLIO.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ OTC FUND -- PER SHARE AMOUNTS FOR THE YEAR ENDED MARCH 31, 2000 HAVE BEEN
RESTATED TO REFLECT A 3:1 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000.
ARTKOS FUND -- PER SHARE AMOUNTS FOR THE YEAR ENDED MARCH 31, 2000 HAVE BEEN
RESTATED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000.
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 85
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding
throughout each period, and to assist shareholders in evaluating a Fund's
performance for the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
--------- ---------- -------------- ---------------- -------------
ARKTOS FUND -- A-CLASS
SEPTEMBER 30, 2004@ $ 25.60 $ (.09) $ .15 $ .06 $ --
March 31, 2004 * 25.60 -- -- -- --
ARKTOS FUND -- C-CLASS
SEPTEMBER 30, 2004@ 24.83 (.18) .13 (.05) --
March 31, 2004 36.92 (.38) (11.71) (12.09) --
March 31, 2003 31.93 3.08 3.05 6.13 (1.14)
March 31, 2002 35.74 .43 (3.95) (3.52) (.29)
March 31, 2001 * 29.14 -- 6.60 6.60 --
MEDIUS FUND -- A-CLASS
SEPTEMBER 30, 2004@ 28.30 (.05) (.99) (1.04) --
March 31, 2004 * 28.30 -- -- -- --
MEDIUS FUND -- C-CLASS
SEPTEMBER 30, 2004@ 27.76 (.14) (.98) (1.12) --
March 31, 2004 15.85 (.31) 12.22 11.91 --
March 31, 2003 26.00 (.17) (9.87) (10.04) (.11)
March 31, 2002 * 24.53 (.13) 1.60 1.47 --
MEDIUS FUND -- H-CLASS
SEPTEMBER 30, 2004@ 28.30 (.05) (1.00) (1.05) --
March 31, 2004 16.04 (.14) 12.40 12.26 --
March 31, 2003 26.08 (.07) (9.86) (9.93) (.11)
March 31, 2002 * 25.00 (.03) 1.11 1.08 --
INVERSE MID-CAP FUND -- A-CLASS
SEPTEMBER 30, 2004@ 49.01 (.13) .13 -- --
March 31, 2004 * 49.01 -- -- -- --
INVERSE MID-CAP FUND -- C-CLASS
SEPTEMBER 30, 2004@ 48.98 (.32) .13 (.19) --
March 31, 2004 * 50.00 (.08) (.94) (1.02) --
INVERSE MID-CAP FUND -- H-CLASS
SEPTEMBER 30, 2004@ 49.01 (.12) .11 (.01) --
March 31, 2004 * 50.00 (.05) (.94) (.99) --
MEKROS FUND -- A-CLASS
SEPTEMBER 30, 2004@ 26.22 (.03) (1.22) (1.25) --
March 31, 2004 * 26.22 -- -- -- --
MEKROS FUND -- C-CLASS
SEPTEMBER 30, 2004@ 25.63 (.16) (1.16) (1.32) --
March 31, 2004 12.75 (.28) 13.16 12.88 --
March 31, 2003 22.47 (.15) (9.53) (9.68) --
March 31, 2002 19.99 (.07) 2.55 2.48 --
March 31, 2001 * 24.28 .17 (4.46) (4.29) --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- ------------- ---------- ----------
ARKTOS FUND -- A-CLASS
SEPTEMBER 30, 2004@ $ -- $ -- $ .06 $ 25.66 0.23%
March 31, 2004 * -- -- -- 25.60 0.00%
ARKTOS FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (.05) 24.78 (0.20)%
March 31, 2004 -- -- (12.09) 24.83 (32.75)%
March 31, 2003 -- (1.14) 4.99 36.92 19.02%
March 31, 2002 -- (.29) (3.81) 31.93 (9.80)%
March 31, 2001 * -- -- 6.60 35.74 22.65%
MEDIUS FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- (1.04) 27.26 (3.67)%
March 31, 2004 * -- -- -- 28.30 0.00%
MEDIUS FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (1.12) 26.64 (4.03)%
March 31, 2004 -- -- 11.91 27.76 75.14%
March 31, 2003 -- (.11) (10.15) 15.85 (38.65)%
March 31, 2002 * -- -- 1.47 26.00 5.99%
MEDIUS FUND -- H-CLASS
SEPTEMBER 30, 2004@ -- -- (1.05) 27.25 (3.71)%
March 31, 2004 -- -- 12.26 28.30 76.43%
March 31, 2003 -- (.11) (10.04) 16.04 (38.11)%
March 31, 2002 * -- -- 1.08 26.08 4.32%
INVERSE MID-CAP FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- -- 49.01 0.00%
March 31, 2004 * -- -- -- 49.01 0.00%
INVERSE MID-CAP FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (.19) 48.79 (0.39)%
March 31, 2004 * -- -- (1.02) 48.98 (2.04)%
INVERSE MID-CAP FUND -- H-CLASS
SEPTEMBER 30, 2004@ -- -- (.01) 49.00 (0.02)%
March 31, 2004 * -- -- (.99) 49.01 (1.98)%
MEKROS FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- (1.25) 24.97 (4.77)%
March 31, 2004 * -- -- -- 26.22 0.00%
MEKROS FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (1.32) 24.31 (5.15)%
March 31, 2004 -- -- 12.88 25.63 101.02%
March 31, 2003 (.04) (.04) (9.72) 12.75 (43.12)%
March 31, 2002 -- -- 2.48 22.47 12.41%
March 31, 2001 * -- -- (4.29) 19.99 (17.67)%
RATIOS TO
AVERAGE NET ASSETS:
---------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
-------- -------- ---------- ---------- -------------
ARKTOS FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.65%**++ 1.65%**++ (0.73)%** -- $ 3,704
March 31, 2004 * 0.00%**++# 0.00%**++# 0.00%** -- 1
ARKTOS FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.39%**++ 2.39%**++ (1.47)%** -- 21,483
March 31, 2004 2.41%++ 2.41%++ (1.48)% -- 34,375
March 31, 2003 2.41%++ 2.41%++ 8.23% -- 2,673
March 31, 2002 2.38%++ 2.38%++ 1.45% -- 1,996
March 31, 2001 * 2.28%**++ 2.27%**++ 0.00%** 1,788% 22
MEDIUS FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.66%** 1.66%** (0.37)%** 424% 253
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 1,239% 4
MEDIUS FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.05)%** 424% 11,089
March 31, 2004 2.41% 2.41% (1.31)% 1,239% 14,444
March 31, 2003 2.43% 2.43% (0.95)% 2,322% 5,610
March 31, 2002 * 2.44%** 2.44%** (0.96)%** 893% 1,734
MEDIUS FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.37)%** 424% 35,368
March 31, 2004 1.66% 1.66% (0.56)% 1,239% 68,193
March 31, 2003 1.69% 1.69% (0.32)% 2,322% 14,634
March 31, 2002 * 1.71%** 1.71%** (0.19)%** 893% 116,176
INVERSE MID-CAP FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.54)%** -- 159
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 1
INVERSE MID-CAP FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.25)%** -- 124
March 31, 2004 * 2.23%** 2.23%** (1.45)%** -- 137
INVERSE MID-CAP FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.49)%** -- 5,656
March 31, 2004 * 1.54%** 1.54%** (0.74)%** -- 2,678
MEKROS FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.67%** 1.67%** (0.23)%** 349% 1,012
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 965% 4
MEKROS FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.28)%** 349% 21,994
March 31, 2004 2.41% 2.41% (1.34)% 965% 48,851
March 31, 2003 2.43% 2.43% (0.91)% 746% 13,530
March 31, 2002 2.44% 2.44% (0.33)% 714% 20,604
March 31, 2001 * 2.54%** 2.52%** 3.80%** -- 2
* SINCE THE COMMENCEMENT OF OPERATIONS: JANUARY 23, 2001 -- MEKROS FUND
C-CLASS; MARCH 7, 2001 -- ARKTOS FUND C-CLASS; AUGUST 16, 2001 -- MEDIUS
FUND H-CLASS; AUGUST 20, 2001 -- MEDIUS FUND C-CLASS; FEBRUARY 20, 2004 --
INVERSE MID-CAP FUND C-CLASS, INVERSE MID-CAP FUND H-CLASS; MARCH 31, 2004
-- MEDIUS FUND A-CLASS, INVERSE MID-CAP FUND A-CLASS, MEKROS FUND A-CLASS,
AND ARKTOS FUND A-CLASS.
** 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.
++ RATIO TO AVERAGE NET ASSETS INCLUDED EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
See Notes to Financial Statements.
86 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
--------- ---------- -------------- ---------------- -------------
MEKROS FUND -- H-CLASS
SEPTEMBER 30, 2004@ $ 26.22 $ (.07) $ (1.19) $ (1.26) $ --
March 31, 2004 12.94 (.14) 13.42 13.28 --
March 31, 2003 22.61 (.03) (9.60) (9.63) --
March 31, 2002 19.99 .16 2.46 2.62 --
March 31, 2001 * 25.00 .42 (5.43) (5.01) --
INVERSE SMALL-CAP FUND -- A-CLASS
SEPTEMBER 30, 2004@ 48.80 (.11) 1.00 .89 --
March 31, 2004 * 48.80 -- -- -- --
INVERSE SMALL-CAP FUND -- C-CLASS
SEPTEMBER 30, 2004@ 48.77 (.31) 1.01 .70 --
March 31, 2004 * 50.00 (.08) (1.15) (1.23) --
INVERSE SMALL-CAP FUND -- H-CLASS
SEPTEMBER 30, 2004@ 48.80 (.12) .99 .87 --
March 31, 2004 * 50.00 (.04) (1.16) (1.20) --
U.S. GOVERNMENT BOND FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 11.03 .21 (.17) .04 (.21)
March 31, 2004 10.95 .41 .08 .49 (.41)
March 31, 2003 9.12 .41 1.83 2.24 (.41)
March 31, 2002 9.82 .43 (.70) (.27) (.43)
March 31, 2001 9.34 .42 .48 .90 (.42)
March 31, 2000 10.05 .46 (.71) (.25) (.46)
U.S. GOVERNMENT BOND FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 11.04 .17 (.15) .02 (.18)
March 31, 2004 * 10.00 .23 1.04 1.27 (.23)
U.S. GOVERNMENT BOND FUND -- A-CLASS
SEPTEMBER 30, 2004@ 11.05 .19 (.18) .01 (.19)
March 31, 2004 * 11.05 -- -- -- --
U.S. GOVERNMENT BOND FUND -- C-CLASS
SEPTEMBER 30, 2004@ 11.05 .15 (.16) (.01) (.15)
March 31, 2004 10.97 .30 .08 .38 (.30)
March 31, 2003 9.12 .31 1.85 2.16 (.31)
March 31, 2002 * 9.42 .32 (.32) -- (.30)
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- ------------- --------- ----------
MEKROS FUND -- H-CLASS
SEPTEMBER 30, 2004@ $ -- $ -- $ (1.26) $ 24.96 (4.81)%
March 31, 2004 -- -- 13.28 26.22 102.63%
March 31, 2003 (.04) (.04) (9.67) 12.94 (42.63)%
March 31, 2002 -- -- 2.62 22.61 13.11%
March 31, 2001 * -- -- (5.01) 19.99 (20.04)%
INVERSE SMALL-CAP FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- .89 49.69 1.82%
March 31, 2004 * -- -- -- 48.80 0.00%
INVERSE SMALL-CAP FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- .70 49.47 1.44%
March 31, 2004 * -- -- (1.23) 48.77 (2.46)%
INVERSE SMALL-CAP FUND -- H-CLASS
SEPTEMBER 30, 2004@ -- -- .87 49.67 1.78%
March 31, 2004 * -- -- (1.20) 48.80 (2.40)%
U.S. GOVERNMENT BOND FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ -- (.21) (.17) 10.86 0.45%
March 31, 2004 -- (.41) .08 11.03 4.65%
March 31, 2003 -- (.41) 1.83 10.95 24.93%
March 31, 2002 -- (.43) (.70) 9.12 (2.88)%
March 31, 2001 -- (.42) .48 9.82 9.81%
March 31, 2000 -- (.46) (.71) 9.34 (2.26)%
U.S. GOVERNMENT BOND FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ -- (.18) (.16) 10.88 0.30%
March 31, 2004 * -- (.23) 1.04 11.04 12.84%
U.S. GOVERNMENT BOND FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- (.19) (.18) 10.87 0.23%
March 31, 2004 * -- -- -- 11.05 0.00%
U.S. GOVERNMENT BOND FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- (.15) (.16) 10.89 0.03%
March 31, 2004 -- (.30) .08 11.05 3.59%
March 31, 2003 -- (.31) 1.85 10.97 23.93%
March 31, 2002 * -- (.30) (.30) 9.12 (0.14)%
RATIOS TO
AVERAGE NET ASSETS:
---------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
-------- -------- ---------- --------- -------------
MEKROS FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.55)%** 349% $ 122,554
March 31, 2004 1.66% 1.66% (0.62)% 965% 174,320
March 31, 2003 1.69% 1.69% (0.20)% 746% 32,101
March 31, 2002 1.61% 1.61% 0.74% 714% 120,045
March 31, 2001 * 1.74%** 1.73%** 4.24%** -- 36,704
INVERSE SMALL-CAP FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.66%** 1.66%** (0.44)%** -- 248
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 1
INVERSE SMALL-CAP FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.21)%** -- 17,666
March 31, 2004 * 2.24%** 2.24%** (1.42)%** -- 492
INVERSE SMALL-CAP FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.47)%** -- 17,024
March 31, 2004 * 1.54%** 1.54%** (0.72)%** -- 5,054
U.S. GOVERNMENT BOND FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 0.95%** 0.95%** 4.04%** 283% 32,093
March 31, 2004 0.95% 0.95% 3.84% 1,143% 25,188
March 31, 2003 0.97% 0.97% 4.00% 2,404% 51,370
March 31, 2002 0.88% 0.88% 4.39% 860% 14,138
March 31, 2001 0.97% 0.96% 4.38% 1,107% 80,686
March 31, 2000 0.93% 0.92% 5.01% 890% 28,105
U.S. GOVERNMENT BOND FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.46%** 1.46%** 3.35%** 283% 114,730
March 31, 2004 * 1.45%** 1.45%** 3.21%** 1,143% 46,690
U.S. GOVERNMENT BOND FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.21%** 1.21%** 3.75%** 283% 366
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 1,143% 1
U.S. GOVERNMENT BOND FUND -- C-CLASS
SEPTEMBER 30, 2004@ 1.95%** 1.95%** 2.91%** 283% 6,225
March 31, 2004 1.96% 1.96% 2.85% 1,143% 3,828
March 31, 2003 1.95% 1.95% 2.86% 2,404% 2,163
March 31, 2002 * 1.79%** 1.79%** 3.53%** 860% 209
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 1, 2000 -- MEKROS FUND
H-CLASS; MAY 2, 2001 -- U.S. GOVERNMENT BOND FUND C-CLASS; AUGUST 1, 2003 --
U.S. GOVERNMENT BOND FUND ADVISOR CLASS; FEBRUARY 20, 2004 -- INVERSE
SMALL-CAP FUND C-CLASS AND INVERSE SMALL-CAP FUND H-CLASS; MARCH 31, 2004 --
INVERSE SMALL-CAP FUND A-CLASS AND U.S. GOVERNMENT BOND FUND A-CLASS.
** 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.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 87
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
--------- ---------- -------------- ---------------- -------------
JUNO FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ $ 19.77 $ (.04) $ (.20) $ (.24) $ --
March 31, 2004 21.23 (.09) (1.37) (1.46) --
March 31, 2003 26.40 (.04) (5.13) (5.17) --
March 31, 2002 ++ 25.59 .27 .54 .81 --
March 31, 2001 ++ 27.00 1.23 (2.64) (1.41) --
March 31, 2000 ++ 26.10 .93 .12 1.05 (.15)
JUNO FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 19.71 (.09) (.21) (.30) --
March 31, 2004 * 22.41 (.13) (2.57) (2.70) --
JUNO FUND -- A-CLASS
SEPTEMBER 30, 2004@ 19.71 (.07) (.20) (.27) --
March 31, 2004 * 19.71 -- -- -- --
JUNO FUND -- C-CLASS
SEPTEMBER 30, 2004@ 19.24 (.14) (.19) (.33) --
March 31, 2004 20.88 (.29) (1.35) (1.64) --
March 31, 2003 26.16 (.17) (5.11) (5.28) --
March 31, 2002 ++ 25.59 .15 .42 .57 --
March 31, 2001 *++ 25.65 -- (.06) (.06) --
LARGE-CAP EUROPE FUND -- A-CLASS
SEPTEMBER 30, 2004@ 14.98 (.03) .43 .40 --
March 31, 2004 * 14.98 -- -- -- --
LARGE-CAP EUROPE FUND -- C-CLASS
SEPTEMBER 30, 2004@ 14.62 (.09) .42 .33 --
March 31, 2004 9.74 (1.18) 6.77 5.59 --
March 31, 2003 15.22 (.10) (5.38) (5.48) --
March 31, 2002 * 19.09 (.11) (3.76) (3.87) --
LARGE-CAP EUROPE FUND -- H-CLASS
SEPTEMBER 30, 2004@ 14.98 (.04) .45 .41 --
March 31, 2004 9.88 (1.65) 7.46 5.81 --
March 31, 2003 15.30 (.02) (5.40) (5.42) --
March 31, 2002 17.72 .19 (2.61) (2.42) --
March 31, 2001 * 25.00 .83 (8.11) (7.28) --
LARGE-CAP JAPAN FUND -- A-CLASS
SEPTEMBER 30, 2004@ 34.60 (.06) (5.89) (5.95) --
March 31, 2004 * 34.60 -- -- -- --
LARGE-CAP JAPAN FUND -- C-CLASS
SEPTEMBER 30, 2004@ 34.18 (.18) (5.80) (5.98) --
March 31, 2004 18.96 (.80) 16.26 15.46 --
March 31, 2003 ++ 27.24 (.18) (8.10) (8.28) --
March 31, 2002 *++ 25.65 (.03) 1.62 1.59 --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- ------------- --------- ----------
JUNO FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ $ -- $ -- $ (.24) $ 19.53 (1.21)%
March 31, 2004 -- -- (1.46) 19.77 (6.88)%
March 31, 2003 -- -- (5.17) 21.23 (19.53)%
March 31, 2002 ++ -- -- .81 26.40 3.17%
March 31, 2001 ++ -- -- (1.41) 25.59 (5.22)%
March 31, 2000 ++ -- (.15) .90 27.00 3.97%
JUNO FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ -- -- (.30) 19.41 (1.52)%
March 31, 2004 * -- -- (2.70) 19.71 (12.05)%
JUNO FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- (.27) 19.44 (1.37)%
March 31, 2004 * -- -- -- 19.71 0.00%
JUNO FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (.33) 18.91 (1.72)%
March 31, 2004 -- -- (1.64) 19.24 (7.85)%
March 31, 2003 -- -- (5.28) 20.88 (20.13)%
March 31, 2002 ++ -- -- .57 26.16 2.23%
March 31, 2001 *++ -- -- (.06) 25.59 (0.23)%
LARGE-CAP EUROPE FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- .40 15.38 2.67%
March 31, 2004 * -- -- -- 14.98 0.00%
LARGE-CAP EUROPE FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- .33 14.95 2.26%
March 31, 2004 (.71) (.71) 4.88 14.62 57.29%
March 31, 2003 -- -- (5.48) 9.74 (36.01)%
March 31, 2002 * -- -- (3.87) 15.22 (20.27)%
LARGE-CAP EUROPE FUND -- H-CLASS
SEPTEMBER 30, 2004@ -- -- .41 15.39 2.74%
March 31, 2004 (.71) (.71) 5.10 14.98 58.72%
March 31, 2003 -- -- (5.42) 9.88 (35.42)%
March 31, 2002 -- -- (2.42) 15.30 (13.66)%
March 31, 2001 * -- -- (7.28) 17.72 (29.12)%
LARGE-CAP JAPAN FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- -- (5.95) 28.65 (17.20)%
March 31, 2004 * -- -- -- 34.60 0.00%
LARGE-CAP JAPAN FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (5.98) 28.20 (17.50)%
March 31, 2004 (.24) (.24) 15.22 34.18 81.72%
March 31, 2003 ++ -- -- (8.28) 18.96 (30.40)%
March 31, 2002 *++ -- -- 1.59 27.24 6.20%
RATIOS TO
AVERAGE NET ASSETS:
----------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
-------- -------- ---------- --------- -------------
JUNO FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 1.34%**+++ 1.34%**+++ (0.42)%** 45% $ 1,592,954
March 31, 2004 1.38%+++ 1.38%+++ (0.45)% 187% 898,294
March 31, 2003 1.41%+++ 1.41%+++ (0.45)% -- 128,958
March 31, 2002 ++ 1.41%+++ 1.41%+++ 1.12% -- 32,293
March 31, 2001 ++ 1.33%+++ 1.33%+++ 4.61% -- 10,745
March 31, 2000 ++ 1.47% 1.47% 3.39% -- 9,941
JUNO FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.84%**+++ 1.84%**+++ (0.92)%** 45% 136,210
March 31, 2004 * 1.86%**+++ 1.86%**+++ (0.93)%** 187% 52,298
JUNO FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.60%**+++ 1.60%**+++ (0.68)%** 45% 119,907
March 31, 2004 * 0.00%**+++# 0.00%**+++# 0.00%** 187% 5,057
JUNO FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.34%**+++ 2.34%**+++ (1.42)%** 45% 890,654
March 31, 2004 2.38%+++ 2.38%+++ (1.45)% 187% 489,918
March 31, 2003 2.40%+++ 2.40%+++ (1.64)% -- 60,969
March 31, 2002 ++ 2.47%+++ 2.47%+++ 0.55% -- 877
March 31, 2001 *++ 2.48%**+++ 2.48%**+++ 2.70** -- 1,702
LARGE-CAP EUROPE FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.35)%** -- 117
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 1
LARGE-CAP EUROPE FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.24)%** -- 1,888
March 31, 2004 2.47% 2.47% (8.31)% -- 1,999
March 31, 2003 2.45% 2.45% (0.96)% -- 1,957
March 31, 2002 * 2.69%** 2.69%** (0.82)%** -- 116
LARGE-CAP EUROPE FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.52)%** -- 31,844
March 31, 2004 1.73% 1.73% (11.25)% -- 35,914
March 31, 2003 1.68% 1.68% (0.13)% -- 4,698
March 31, 2002 1.76% 1.76% 1.18% -- 9,697
March 31, 2001 * 2.06%** 2.06%** 4.03%** 350% 9,977
LARGE-CAP JAPAN FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.41)%** -- 193
March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 55
LARGE-CAP JAPAN FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.21)%** -- 6,448
March 31, 2004 2.42% 2.42% (2.85)% -- 5,572
March 31, 2003 ++ 2.36% 2.36% (0.68)% -- 9
March 31, 2002 *++ 2.20%** 2.20%** (0.72)%** -- 12
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP EUROPE FUND
H-CLASS; MARCH 28, 2001 -- JUNO FUND C-CLASS; MAY 10, 2001-- LARGE-CAP
EUORPE C-CLASS; MARCH 1, 2002 -- LARGE-CAP JAPAN FUND C-CLASS; AUGUST 1,2003
-- JUNO FUND ADVISOR CLASS; MARCH 31, 2004 -- JUNO FUND A-CLASS, LARGE-CAP
EUROPE FUND A-CLASS AND LARGE-CAP JAPAN FUND A-CLASS.
** 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.
++ JUNO FUND -- PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2000 THROUGH
MARCH 31, 2002 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT
EFFECTIVE FEBRUARY 10, 2003. LARGE-CAP JAPAN FUND -- PER SHARE AMOUNTS FOR
THE PERIOD ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO
REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003.
+++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
See Notes to Financial Statements.
88 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
---------- ---------- -------------- --------------- -------------
LARGE-CAP JAPAN FUND -- H-CLASS
SEPTEMBER 30, 2004@ $ 34.60 $ (.09) $ (5.84) $ (5.93) $ --
March 31, 2004 19.05 (.40) 16.19 15.79 --
March 31, 2003 ++ 27.27 (.03) (8.19) (8.22) --
March 31, 2002 ++ 39.12 .48 (12.33) (11.85) --
March 31, 2001 *++ 75.00 2.07 (37.95) (35.88) --
SMALL-CAP VALUE FUND -- A CLASS
SEPTEMBER 30, 2004 * @ 25.28 (.01) .99 .98 --
SMALL-CAP VALUE FUND -- C CLASS
SEPTEMBER 30, 2004 @ 25.59 (.14) .68 .54 --
March 31, 2004 * 25.00 (.05) .64 .59 --
SMALL-CAP VALUE FUND -- H CLASS
SEPTEMBER 30, 2004 @ 25.62 (.03) .68 .65 --
March 31, 2004 * 25.00 (.01) .63 .62 --
MID-CAP VALUE FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 24.58 (.01) .49 .48 --
MID-CAP VALUE FUND -- C-CLASS
SEPTEMBER 30, 2004 @ 25.11 (.09) (.04) (.13) --
March 31, 2004 * 25.00 (.02) .13 .11 --
MID-CAP VALUE FUND -- H-CLASS
SEPTEMBER 30, 2004 @ 25.13 -- (.06) (.06) --
March 31, 2004 * 25.00 .01 .12 .13 --
LARGE-CAP VALUE FUND -- A-CLASS
SEPTEMBER 30, 2004 * @ 24.68 (.01) .41 .40 --
LARGE-CAP VALUE FUND -- C-CLASS
SEPTEMBER 30, 2004@ 24.85 (.03) .17 .14 --
March 31, 2004 * 25.00 (.02) (.13) (.15) --
LARGE-CAP VALUE FUND -- H-CLASS
SEPTEMBER 30, 2004 @ 24.87 .04 .17 .21 --
March 31, 2004 * 25.00 .01 (.14) (.13) --
SMALL-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 24.43 (.02) 1.05 1.03 --
SMALL-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004 @ 25.33 (.19) .24 .05 --
March 31, 2004 * 25.00 (.04) .37 .33 --
SMALL-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004 @ 25.34 (.09) .21 .12 --
March 31, 2004 * 25.00 (.02) .36 .34 --
MID-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 23.91 (.02) .42 .40 --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- ------------- --------- ----------
LARGE-CAP JAPAN FUND -- H-CLASS
SEPTEMBER 30, 2004@ $ -- $ -- $ (5.93) $ 28.67 (17.14)%
March 31, 2004 (.24) (.24) 15.55 34.60 83.07%
March 31, 2003 ++ -- -- (8.22) 19.05 (30.14)%
March 31, 2002 ++ -- -- (11.85) 27.27 (30.29)%
March 31, 2001 *++ -- -- (35.88) 39.12 (47.84)%
SMALL-CAP VALUE FUND -- A CLASS
SEPTEMBER 30, 2004 * @ -- -- .98 26.26 3.88%
SMALL-CAP VALUE FUND -- C CLASS
SEPTEMBER 30, 2004 @ -- -- .54 26.13 2.11%
March 31, 2004 * -- -- .59 25.59 2.36%
SMALL-CAP VALUE FUND -- H CLASS
SEPTEMBER 30, 2004 @ -- -- .65 26.27 2.54%
March 31, 2004 * -- -- .62 25.62 2.48%
MID-CAP VALUE FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ -- -- .48 25.06 1.95%
MID-CAP VALUE FUND -- C-CLASS
SEPTEMBER 30, 2004 @ -- -- (.13) 24.98 (0.52)%
March 31, 2004 * -- -- .11 25.11 0.44%
MID-CAP VALUE FUND -- H-CLASS
SEPTEMBER 30, 2004 @ -- -- (.06) 25.07 (0.24)%
March 31, 2004 * -- -- .13 25.13 0.52%
LARGE-CAP VALUE FUND -- A-CLASS
SEPTEMBER 30, 2004 * @ -- -- .40 25.08 1.62%
LARGE-CAP VALUE FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- .14 24.99 0.56%
March 31, 2004 * -- -- (.15) 24.85 (0.60)%
LARGE-CAP VALUE FUND -- H-CLASS
SEPTEMBER 30, 2004 @ -- -- .21 25.08 0.84%
March 31, 2004 * -- -- (.13) 24.87 (0.52)%
SMALL-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ -- -- 1.03 25.46 4.22%
SMALL-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004 @ -- -- .05 25.38 0.20%
March 31, 2004 * -- -- .33 25.33 1.32%
SMALL-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004 @ -- -- .12 25.46 0.47%
March 31, 2004 * -- -- .34 25.34 1.36%
MID-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ -- -- .40 24.31 1.67%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
-------- -------- ---------- --------- -------------
LARGE-CAP JAPAN FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.64%** 1.64%** (0.55)%** -- $ 34,326
March 31, 2004 1.66% 1.66% 1.46% -- 177,760
March 31, 2003 ++ 1.69% 1.69% (0.06)% -- 2,683
March 31, 2002 ++ 1.84% 1.84% 1.44% -- 23,873
March 31, 2001 *++ 1.77%** 1.77%** 4.17%** 699% 14,606
SMALL-CAP VALUE FUND -- A CLASS
SEPTEMBER 30, 2004 * @ 1.55%** 1.55%** (0.81)%** 338% 18
SMALL-CAP VALUE FUND -- C CLASS
SEPTEMBER 30, 2004 @ 2.25%** 2.25%** (1.08)%** 338% 1,911
March 31, 2004 * 2.11%** 2.11%** (1.68)%** 177% 2,207
SMALL-CAP VALUE FUND -- H CLASS
SEPTEMBER 30, 2004 @ 1.51%** 1.51%** (0.21)%** 338% 116,386
March 31, 2004 * 1.41%** 1.41%** (0.21)%** 177% 19,900
MID-CAP VALUE FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 1.57%** 1.57%** (0.54)%** 736% 1
MID-CAP VALUE FUND -- C-CLASS
SEPTEMBER 30, 2004 @ 2.26%** 2.26%** (0.74)%** 736% 2,109
March 31, 2004 * 2.11%** 2.11%** (0.50)%** 172% 710
MID-CAP VALUE FUND -- H-CLASS
SEPTEMBER 30, 2004 @ 1.52%** 1.52%** 0.02%** 736% 49,116
March 31, 2004 * 1.41%** 1.41%** 0.19%** 172% 18,064
LARGE-CAP VALUE FUND -- A-CLASS
SEPTEMBER 30, 2004 * @ 1.63%** 1.63%** (0.55)%** 345% 1
LARGE-CAP VALUE FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.25%** 2.25%** (0.28)%** 345% 2,500
March 31, 2004 * 2.10%** 2.10%** (0.53)%** 202% 2,612
LARGE-CAP VALUE FUND -- H-CLASS
SEPTEMBER 30, 2004 @ 1.51%** 1.51%** 0.35%** 345% 113,621
March 31, 2004 * 1.41%** 1.41%** 0.34%** 202% 8,094
SMALL-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 1.68%** 1.68%** (0.82)%** 517% 1
SMALL-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004 @ 2.25%** 2.25%** (1.54)%** 517% 4,099
March 31, 2004 * 2.08%** 2.08%** (1.31)%** 117% 2,505
SMALL-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004 @ 1.52%** 1.52%** (0.77)%** 517% 89,367
March 31, 2004 * 1.41%** 1.41%** (0.85)%** 117% 2,544
MID-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 1.62%** 1.62%** (1.03)%** 563% 1
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP JAPAN FUND
H-CLASS; FEBRUARY 20, 2004 -- SMALL-CAP VALUE FUND C-CLASS, SMALL-CAP VALUE
FUND H-CLASS, MID-CAP VALUE FUND C-CLASS, MID-CAP VALUE FUND H-CLASS,
LARGE-CAP VALUE FUND C-CLASS, LARGE-CAP VALUE FUND H-CLASS, SMALL-CAP GROWTH
FUND C-CLASS, SMALL-CAP GROWTH FUND H-CLASS; SEPTEMBER 1, 2004 -- SMALL-CAP
VALUE FUND A-CLASS, MID-CAP VALUE FUND A-CLASS, LARGE-CAP VALUE FUND
A-CLASS, SMALL-CAP GROWTH FUND A-CLASS, AND MID-CAP GROWTH FUND A-CLASS.
** 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.
++ LARGE-CAP JAPAN FUND -- PER SHARE AMOUNTS FOR THE PERIOD ENDED MARCH 31,
2001 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE
STOCK SPLIT EFFECTIVE APRIL 21, 2003.
@ UNAUDITED
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 89
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
----------- ---------- -------------- --------------- -------------
MID-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004@ $ 25.15 $ (.19) $ (.73) $ (.92) $ --
March 31, 2004 * 25.00 (.05) .20 .15 --
MID-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004@ 25.17 (.09) (.75) (.84) --
March 31, 2004 * 25.00 (.02) .19 .17 --
LARGE-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 23.44 -- (.13) (.13) --
LARGE-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004@ 24.18 (.03) (.93) (.96) --
March 31, 2004 * 25.00 (.05) (.77) (.82) --
LARGE-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004@ 24.18 (.01) (.86) (.87) --
March 31, 2004 * 25.00 -- (.82) (.82) --
U.S. GOVERNMENT MONEY MARKET FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)&
March 31, 2004 1.00 --&& -- -- (--)&&
March 31, 2003 1.00 .01 -- .01 (.01)
March 31, 2002 1.00 .02 -- .02 (.02)
March 31, 2001 1.00 .05 -- .05 (.05)
March 31, 2000 1.00 .04 -- .04 (.04)
U.S. GOVERNMENT MONEY MARKET FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)&
March 31, 2004 1.00 --&& -- -- (--)&&
March 31, 2003 1.00 --&&& -- -- (--)&&&
March 31, 2002 1.00 .02 -- .02 (.02)
March 31, 2001 1.00 .05 -- .05 (.05)
March 31, 2000 1.00 .04 -- .04 (.04)
U.S. GOVERNMENT MONEY MARKET FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)&
March 31, 2004 * 1.00 -- -- -- --
U.S. GOVERNMENT MONEY MARKET FUND -- C-CLASS
SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)&
March 31, 2004 1.00 --&& -- -- (--)&&
March 31, 2003 1.00 --&&& -- -- (--)&&&
March 31, 2002 1.00 .01 -- .01 (.01)
March 31, 2001 * 1.00 .02 -- .02 (.02)
U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL
CLASS
SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)&
March 31, 2004 1.00 .01 -- .01 (.01)
March 31, 2003 * 1.00 .01 -- .01 (.01)
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
------------- ------------- ------------- --------- ----------
MID-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004@ $ -- $ -- $ (.92) $ 24.23 (3.66)%
March 31, 2004 * -- -- .15 25.15 0.60%
MID-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004@ -- -- (.84) 24.33 (3.34)%
March 31, 2004 * -- -- .17 25.17 0.68%
LARGE-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ -- -- (.13) 23.31 (0.55)%
LARGE-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- -- (.96) 23.22 (3.97)%
March 31, 2004 * -- -- (.82) 24.18 (3.28)%
LARGE-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004@ -- -- (.87) 23.31 (3.60)%
March 31, 2004 * -- -- (.82) 24.18 (3.28)%
U.S. GOVERNMENT MONEY MARKET FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.15%
March 31, 2004 -- (--)&& -- 1.00 0.18%
March 31, 2003 -- (.01) -- 1.00 0.71%
March 31, 2002 -- (.02) -- 1.00 2.35%
March 31, 2001 -- (.05) -- 1.00 5.48%
March 31, 2000 -- (.04) -- 1.00 4.48%
U.S. GOVERNMENT MONEY MARKET FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.02%
March 31, 2004 -- (--)&& -- 1.00 0.01%
March 31, 2003 -- (--)&&& -- 1.00 0.27%
March 31, 2002 -- (.02) -- 1.00 1.84%
March 31, 2001 -- (.05) -- 1.00 4.99%
March 31, 2000 -- (.04) -- 1.00 3.94%
U.S. GOVERNMENT MONEY MARKET FUND -- A-CLASS
SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.06%
March 31, 2004 * -- -- -- 1.00 0.00%
U.S. GOVERNMENT MONEY MARKET FUND -- C-CLASS
SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.00%
March 31, 2004 -- (--)&& -- 1.00 0.01%
March 31, 2003 -- (--)&&& -- 1.00 0.08%
March 31, 2002 -- (.01) -- 1.00 1.35%
March 31, 2001 * -- (.02) -- 1.00 1.97%
U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL
CLASS
SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.33%
March 31, 2004 -- (.01) -- 1.00 0.54%
March 31, 2003 * -- (.01) -- 1.00 0.63%
RATIOS TO
AVERAGE NET ASSETS:
---------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
-------- -------- ---------- --------- -------------
MID-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.25%** 2.25%** (1.55)%** 563% $ 1,462
March 31, 2004 * 2.10%** 2.10%** (1.50)%** 356% 1,172
MID-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 200@ 1.51%** 1.51%** (0.77)%** 563% 56,400
March 31, 2004 * 1.41%** 1.41%** (0.75)%** 356% 625
LARGE-CAP GROWTH FUND -- A-CLASS
SEPTEMBER 30, 2004 *@ 1.56%** 1.56%** 0.03%** 1,718% 1
LARGE-CAP GROWTH FUND -- C-CLASS
SEPTEMBER 30, 2004@ 2.26%** 2.26%** (0.25)%** 1,718% 683
March 31, 2004 * 2.08%** 2.08%** (1.25)%** 296% --
LARGE-CAP GROWTH FUND -- H-CLASS
SEPTEMBER 30, 2004@ 1.52%** 1.52%** (0.07)%** 1,718% 4,691
March 31, 2004 * 1.41%** 1.41%** (0.16)%** 296% 793
U.S. GOVERNMENT MONEY MARKET FUND -- INVESTOR CLASS
SEPTEMBER 30, 2004@ 0.90%** 0.90%** 0.31%** -- 1,149,680
March 31, 2004 0.90% 0.90% 0.18% -- 1,057,062
March 31, 2003 0.92% 0.92% 0.71% -- 1,218,676
March 31, 2002 0.85% 0.85% 2.23% -- 979,433
March 31, 2001 0.85% 0.85% 5.38% -- 948,275
March 31, 2000 0.89% 0.88% 4.36% -- 686,198
U.S. GOVERNMENT MONEY MARKET FUND -- ADVISOR CLASS
SEPTEMBER 30, 2004@ 1.40%** 1.17%** 1.03%** -- 247,985
March 31, 2004 1.38% 1.08% 0.01% -- 249,599
March 31, 2003 1.41% 1.37% 0.32% -- 187,513
March 31, 2002 1.32% 1.32% 1.87% -- 371,356
March 31, 2001 1.34% 1.34% 4.87% -- 451,796
March 31, 2000 1.41% 1.40% 3.85% -- 212,181
U.S. GOVERNMENT MONEY MARKET FUND -- A-CLASS
SEPTEMBER 30, 2004@ 1.14%** 1.14%** 0.25%** -- 4,127
March 31, 2004 * 0.00%** 0.00%**# 0.00%**# -- 1
U.S. GOVERNMENT MONEY MARKET FUND -- C-CLASS
SEPTEMBER 30, 2004@ 1.90%** 1.21%** 0.01%** -- 168,550
March 31, 2004 1.90% 1.08% 0.01% -- 131,704
March 31, 2003 1.91% 1.50% 0.06% -- 201,745
March 31, 2002 1.80% 1.80% 1.13% -- 47,920
March 31, 2001 * 1.79%** 1.78%** 4.31%** -- 37,514
U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL
CLASS
SEPTEMBER 30, 2004@ 0.90%** 0.55%** 0.66%** -- 50,001
March 31, 2004 0.90% 0.55% 0.54% -- 50,000
March 31, 2003 * 0.90%** 0.55%** 0.80%** -- 60,008
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 19, 2000 -- U.S. GOVERNMENT
MONEY MARKET FUND C-CLASS; AUGUST 1, 2002 -- U.S. GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL CLASS; FEBRUARY 20, 2004 -- MID-CAP GROWTH FUND C-CLASS,
MID-CAP GROWTH FUND H-CLASS, LARGE-CAP GROWTH FUND C-CLASS, AND LARGE-CAP
GROWTH FUND H-CLASS; MARCH 31, 2004 -- U.S. GOVERNMENT MONEY MARKET FUND
A-CLASS; SEPTEMBER 1, 2004 -- LARGE-CAP GROWTH FUND A-CLASS.
** 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.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
& LESS THAN $0.1 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND INVESTOR CLASS
ACTUAL AMOUNT = $.0015; U.S. GOVERNMENT MONEY MARKET FUND ADVISOR CLASS
ACTUAL AMOUNT = $.0002; U.S. GOVERNMENT MONEY MARKET FUND A-CLASS ACTUAL
AMOUNT = $.0006; U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL AMOUNT =
$.00003; U.S. GOVERNMENT MONEY MARKET FUND INSTITUTIONAL CLASS ACTUAL AMOUNT
= $.0033.
&& LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND INVESTOR CLASS
ACTUAL AMOUNT = $.0019; U.S. GOVERNMENT MONEY MARKET ADVISOR CLASS ACTUAL
AMOUNT = $.00005; U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL AMOUNT =
$.00006.
&&& LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND ADVISOR CLASS
ACTUAL AMOUNT = $.003; U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL
AMOUNT = $.0006.
@ UNAUDITED
See Notes to Financial Statements.
90 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
MARKET
VALUE
SHARES (NOTE 1)
------- -------------
COMMON STOCKS 90.0%
FINANCIALS 18.1%
BANKS 5.2%
Bank of America Corp. 74,300 $ 3,219,419
Wachovia Corp.+ 52,220 2,451,729
SunTrust Banks, Inc.+ 26,690 1,879,243
Wells Fargo & Co. 23,440 1,397,727
PNC Financial Services Group, Inc. 25,170 1,361,697
KeyCorp 41,250 1,303,500
Comerica, Inc.+ 20,450 1,213,707
U.S. Bancorp+ 34,680 1,002,252
National City Corp. 12,030 464,599
M&T Bank Corp. 450 43,065
-------------
TOTAL BANKS 14,336,938
-------------
INSURANCE 4.5%
American International Group, Inc. 48,250 3,280,517
Allstate Corp.+ 37,780 1,813,062
Prudential Financial, Inc. 33,480 1,574,899
ACE Ltd.+ 32,170 1,288,730
Loews Corp. 21,700 1,269,450
Lincoln National Corp. 25,620 1,204,140
SAFECO Corp.+ 21,750 992,888
Torchmark Corp. 11,670 620,611
Cincinnati Financial Corp. 12,750 525,555
-------------
TOTAL INSURANCE 12,569,852
-------------
DIVERSIFIED FINANCIALS 2.7%
Citigroup, Inc. 101,900 4,495,828
J.P. Morgan Chase & Co. 59,920 2,380,621
Principal Financial Group, Inc.+ 18,510 665,805
-------------
TOTAL DIVERSIFIED FINANCIALS 7,542,254
-------------
CAPITAL MARKETS 2.2%
Merrill Lynch & Co., Inc. 41,970 2,086,748
Bear Stearns Cos., Inc.+ 13,790 1,326,184
State Street Corp.+ 29,810 1,273,185
Janus Capital Group, Inc.+ 75,450 1,026,875
Morgan Stanley 6,730 331,789
Goldman Sachs Group, Inc. 500 46,620
-------------
TOTAL CAPITAL MARKETS 6,091,401
-------------
CONSUMER FINANCE 1.6%
Capital One Financial Corp.+ 19,930 1,472,827
MBNA Corp. 53,710 1,353,492
Providian Financial Corp.*+ 74,300 1,154,622
American Express Co.+ 10,700 550,622
-------------
TOTAL CONSUMER FINANCE 4,531,563
-------------
THRIFTS & MORTGAGE FINANCE 1.6%
Fannie Mae 36,080 2,287,472
MGIC Investment Corp.+ 16,680 1,110,054
Countrywide Financial Corp.+ 21,980 865,792
Freddie Mac 1,970 128,523
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 4,391,841
-------------
REAL ESTATE 0.3%
Equity Office Properties Trust+ 27,730 755,643
-------------
TOTAL REAL ESTATE 755,643
-------------
TOTAL FINANCIALS 50,219,492
-------------
INFORMATION TECHNOLOGY 14.7%
SOFTWARE 3.7%
Microsoft Corp.+ 220,290 6,091,019
Computer Associates
International, Inc.+ 55,050 1,447,815
BMC Software, Inc.* 71,510 1,130,573
Symantec Corp.*+ 16,680 915,398
Oracle Corp.* 24,850 280,308
Veritas Software Corp.* 14,340 255,252
Siebel Systems, Inc.* 6,590 49,689
-------------
TOTAL SOFTWARE 10,170,054
-------------
COMPUTERS & PERIPHERALS 3.0%
International Business
Machines Corp. 48,160 4,129,238
Hewlett-Packard Co.+ 123,490 2,315,438
Dell, Inc.*+ 31,930 1,136,708
NCR Corp.* 14,970 742,362
-------------
TOTAL COMPUTERS & PERIPHERALS 8,323,746
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.8%
Intel Corp. 176,480 3,540,189
Applied Materials, Inc.* 103,200 1,701,768
National Semiconductor Corp.*+ 83,740 1,297,132
Texas Instruments, Inc. 30,060 639,677
Advanced Micro Devices, Inc.*+ 17,580 228,540
Novellus Systems, Inc.* 7,960 211,656
Micron Technology, Inc.*+ 12,920 155,428
-------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 7,774,390
-------------
COMMUNICATIONS EQUIPMENT 2.5%
Cisco Systems, Inc.*+ 174,730 3,162,613
Motorola, Inc. 117,140 2,113,206
Tellabs, Inc.*+ 116,970 1,074,954
Qualcomm, Inc.+ 12,820 500,493
-------------
TOTAL COMMUNICATIONS EQUIPMENT 6,851,266
-------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 91
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
MARKET
VALUE
SHARES (NOTE 1)
------- -------------
IT CONSULTING & SERVICES 1.3%
Fiserv, Inc.*+ 33,360 $ 1,162,930
Sabre Holdings Corp.+ 45,310 1,111,454
First Data Corp. 20,930 910,455
SunGard Data Systems, Inc.* 13,150 312,575
Affiliated Computer Services, Inc. --
Class A* 1,110 61,794
-------------
TOTAL IT CONSULTING & SERVICES 3,559,208
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.1%
Tektronix, Inc.+ 40,500 1,346,625
Molex, Inc.+ 38,650 1,152,543
Jabil Circuit, Inc.*+ 28,260 649,980
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 3,149,148
-------------
INTERNET SOFTWARE & SERVICES 0.3%
Yahoo!, Inc.*+ 23,470 795,868
-------------
TOTAL INTERNET SOFTWARE & SERVICES 795,868
-------------
TOTAL INFORMATION TECHNOLOGY 40,623,680
-------------
HEALTH CARE 11.5%
PHARMACEUTICALS 6.7%
Pfizer, Inc. 211,980 6,486,588
Johnson & Johnson, Inc.+ 87,750 4,942,957
Abbott Laboratories 60,320 2,555,155
Merck & Co., Inc. 74,650 2,463,450
Forest Laboratories, Inc.* 20,310 913,544
Eli Lilly & Co. 11,630 698,382
Mylan Laboratories, Inc.+ 14,840 267,120
Wyeth 5,740 214,676
Bristol-Myers Squibb Co.+ 4,490 106,278
Allergan, Inc. 150 10,883
-------------
TOTAL PHARMACEUTICALS 18,659,033
-------------
HEALTH CARE PROVIDERS & SERVICES 2.5%
HCA, Inc. 37,030 1,412,695
Cardinal Health, Inc. 31,160 1,363,873
CIGNA Corp. 17,740 1,235,236
Quest Diagnostics, Inc.+ 12,170 1,073,637
McKesson Corp.+ 38,460 986,499
WellPoint Health Networks, Inc.* 7,450 782,921
UnitedHealth Group, Inc. 1,810 133,469
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 6,988,330
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.3%
Becton, Dickinson & Co. 20,640 1,067,088
PerkinElmer, Inc. 59,500 1,024,590
Bausch & Lomb, Inc.+ 12,540 833,283
Medtronic, Inc. 9,070 470,733
Thermo Electron Corp.* 1,910 51,608
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,447,302
-------------
BIOTECHNOLOGY 1.0%
Applera Corp. - Applied
Biosystems Group+ 57,630 1,087,478
Amgen, Inc.*+ 13,610 771,415
Genzyme Corp.*+ 13,520 735,623
Biogen Idec, Inc.*+ 2,240 137,021
-------------
TOTAL BIOTECHNOLOGY 2,731,537
-------------
TOTAL HEALTH CARE 31,826,202
-------------
INDUSTRIALS 10.4%
INDUSTRIAL CONGLOMERATES 3.8%
General Electric Co.+ 229,250 7,698,215
Tyco International Ltd.+ 79,100 2,425,206
3M Co. 6,810 544,596
-------------
TOTAL INDUSTRIAL CONGLOMERATES 10,668,017
-------------
MACHINERY 1.9%
Illinois Tool Works, Inc.+ 17,630 1,642,587
Danaher Corp.+ 26,780 1,373,279
Parker Hannifin Corp. 20,570 1,210,750
Eaton Corp. 15,430 978,416
-------------
TOTAL MACHINERY 5,205,032
-------------
AEROSPACE & DEFENSE 1.1%
United Technologies Corp. 18,530 1,730,331
Northrop Grumman Corp.+ 12,300 655,959
General Dynamics Corp. 5,940 606,474
Boeing Co.+ 1,400 72,268
-------------
TOTAL AEROSPACE & DEFENSE 3,065,032
-------------
AIR FREIGHT & COURIERS 1.0%
United Parcel Service, Inc. -- Class B 30,580 2,321,634
FedEx Corp.+ 5,600 479,864
-------------
TOTAL AIR FREIGHT & COURIERS 2,801,498
-------------
COMMERCIAL SERVICES & SUPPLIES 0.9%
Cendant Corp.+ 67,660 1,461,456
Cintas Corp. 26,850 1,128,774
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,590,230
-------------
ELECTRICAL EQUIPMENT 0.7%
Emerson Electric Co. 25,920 1,604,189
Rockwell Automation, Inc.+ 5,410 209,367
-------------
TOTAL ELECTRICAL EQUIPMENT 1,813,556
-------------
BUILDING PRODUCTS 0.5%
Masco Corp.+ 40,540 1,399,846
-------------
TOTAL BUILDING PRODUCTS 1,399,846
-------------
ROAD & RAIL 0.5%
Burlington Northern Santa Fe Corp. 36,040 1,380,692
-------------
TOTAL ROAD & RAIL 1,380,692
-------------
TOTAL INDUSTRIALS 28,923,903
-------------
See Notes to Financial Statements.
92 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
MARKET
VALUE
SHARES (NOTE 1)
------- -------------
CONSUMER DISCRETIONARY 10.1%
MEDIA 3.1%
Comcast Corp. -- Class A*+ 89,150 $ 2,517,596
Viacom, Inc. -- Class B 68,300 2,292,148
Walt Disney Co.+ 93,110 2,099,630
Time Warner, Inc.*+ 103,190 1,665,487
-------------
TOTAL MEDIA 8,574,861
-------------
SPECIALTY RETAIL 2.6%
The Gap, Inc.+ 70,740 1,322,838
Limited Brands, Inc.+ 58,850 1,311,767
Sherwin-Williams Co. 28,120 1,236,155
Circuit City Stores, Inc. 77,340 1,186,396
Toys `R' Us, Inc.* 65,010 1,153,277
Home Depot, Inc.+ 26,450 1,036,840
-------------
TOTAL SPECIALTY RETAIL 7,247,273
-------------
HOTELS RESTAURANTS & LEISURE 1.3%
Starwood Hotels & Resorts
Worldwide, Inc.+ 26,890 1,248,234
Marriott International, Inc. --
Class A+ 17,200 893,712
McDonald's Corp. 27,420 768,583
Darden Restaurants, Inc. 29,920 697,734
-------------
TOTAL HOTELS RESTAURANTS & LEISURE 3,608,263
-------------
INTERNET & CATALOG RETAIL 0.9%
eBay, Inc.*+ 26,720 2,456,637
-------------
TOTAL INTERNET & CATALOG RETAIL 2,456,637
-------------
TEXTILES & APPAREL 0.6%
Jones Apparel Group, Inc. 30,230 1,082,234
Nike, Inc. -- Class B+ 8,160 643,008
-------------
TOTAL TEXTILES & APPAREL 1,725,242
-------------
AUTO COMPONENTS 0.5%
Dana Corp. 55,380 979,672
Johnson Controls, Inc.+ 3,950 224,400
-------------
TOTAL AUTO COMPONENTS 1,204,072
-------------
AUTOMOBILES 0.3%
Ford Motor Co.+ 64,370 904,398
-------------
TOTAL AUTOMOBILES 904,398
-------------
MULTILINE RETAIL 0.3%
Dillard's, Inc./AR -- Class A+ 19,750 389,865
Nordstrom, Inc. 8,220 314,333
Target Corp. 170 7,692
-------------
TOTAL MULTILINE RETAIL 711,890
-------------
HOUSEHOLD DURABLES 0.3%
Stanley Works+ 15,700 667,721
-------------
TOTAL HOUSEHOLD DURABLES 667,721
-------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Brunswick Corp.+ 14,140 647,046
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 647,046
-------------
DISTRIBUTORS 0.0%
Genuine Parts Co. 2,360 90,577
-------------
TOTAL DISTRIBUTORS 90,577
-------------
TOTAL CONSUMER DISCRETIONARY 27,837,980
-------------
CONSUMER STAPLES 9.7%
FOOD & DRUG RETAILING 3.1%
Wal-Mart Stores, Inc. 83,440 4,439,008
Costco Wholesale Corp.+ 35,320 1,467,899
Walgreen Co. 31,240 1,119,329
Supervalu, Inc.+ 39,870 1,098,419
CVS Corp. 4,760 200,539
Albertson's, Inc.+ 8,010 191,679
-------------
TOTAL FOOD & DRUG RETAILING 8,516,873
-------------
BEVERAGES 2.0%
Coca-Cola Co. 36,170 1,448,608
Pepsi Bottling Group, Inc.+ 42,600 1,156,590
Brown-Forman Corp. -- Class B 22,830 1,045,614
Adolph Coors Co. -- Class B 15,230 1,034,422
PepsiCo, Inc. 21,140 1,028,461
Anheuser-Busch Cos., Inc. 280 13,986
-------------
TOTAL BEVERAGES 5,727,681
-------------
HOUSEHOLD PRODUCTS 2.0%
Procter & Gamble Co. 47,600 2,576,112
Kimberly-Clark Corp.+ 26,460 1,709,051
Clorox Co. 23,550 1,255,215
-------------
TOTAL HOUSEHOLD PRODUCTS 5,540,378
-------------
TOBACCO 1.2%
Altria Group, Inc. 68,920 3,241,997
-------------
TOTAL TOBACCO 3,241,997
-------------
FOOD PRODUCTS 1.0%
Sara Lee Corp.+ 62,190 1,421,664
McCormick & Co., Inc.+ 32,330 1,110,212
Kellogg Co. 8,120 346,399
-------------
TOTAL FOOD PRODUCTS 2,878,275
-------------
PERSONAL PRODUCTS 0.4%
Avon Products, Inc.+ 12,620 551,242
Gillette Co. 12,660 528,428
-------------
TOTAL PERSONAL PRODUCTS 1,079,670
-------------
TOTAL CONSUMER STAPLES 26,984,874
-------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 93
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
MARKET
VALUE
SHARES (NOTE 1)
------- -------------
ENERGY 6.7%
OIL & GAS 6.7%
Exxon Mobil Corp. 134,550 $ 6,502,801
ChevronTexaco Corp. 66,770 3,581,543
ConocoPhillips 26,180 2,169,013
Anadarko Petroleum Corp. 22,360 1,483,810
Burlington Resources, Inc.+ 35,960 1,467,168
Marathon Oil Corp. 34,170 1,410,538
Devon Energy Corp. 16,510 1,172,375
Sunoco, Inc.+ 5,740 424,645
Valero Energy Corp. 1,670 133,951
Amerada Hess Corp. 1,300 115,700
Occidental Petroleum Corp. 700 39,151
-------------
TOTAL OIL & GAS 18,500,695
-------------
TOTAL ENERGY 18,500,695
-------------
TELECOMMUNICATION SERVICES 3.3%
DIVERSIFIED TELECOMMUNICATION SERVICES 2.5%
SBC Communications, Inc.+ 116,600 3,025,770
BellSouth Corp.+ 63,050 1,709,916
Verizon Communications, Inc.+ 41,190 1,622,062
Citizens Communications Co.+ 44,570 596,793
-------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 6,954,541
-------------
WIRELESS TELECOMMUNICATION SERVICES 0.8%
Nextel Communications, Inc. --
Class A*+ 48,060 1,145,750
AT&T Wireless Services, Inc.* 71,700 1,059,726
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,205,476
-------------
TOTAL TELECOMMUNICATION SERVICES 9,160,017
-------------
MATERIALS 2.9%
METALS & MINING 1.0%
Phelps Dodge Corp.+ 14,300 1,316,029
Nucor Corp.+ 14,075 1,286,033
-------------
TOTAL METALS & MINING 2,602,062
-------------
CHEMICALS 0.9%
Rohm & Haas Co.+ 29,600 1,271,912
Monsanto Co. 32,860 1,196,761
EI Du Pont de Nemours & Co. 580 24,824
-------------
TOTAL CHEMICALS 2,493,497
-------------
PAPER & FOREST PRODUCTS 0.8%
MeadWestvaco Corp. 37,540 1,197,526
Louisiana-Pacific Corp.+ 41,460 1,075,887
-------------
TOTAL PAPER & FOREST PRODUCTS 2,273,413
-------------
CONSTRUCTION MATERIALS 0.2%
Vulcan Materials Co.+ 11,990 610,890
-------------
TOTAL CONSTRUCTION MATERIALS 610,890
-------------
TOTAL MATERIALS 7,979,862
-------------
UTILITIES 2.6%
ELECTRIC UTILITIES 2.1%
PG&E Corp.*+ 43,830 1,332,432
FirstEnergy Corp.+ 31,740 1,303,879
Pinnacle West Capital Corp. 25,830 1,071,945
DTE Energy Co.+ 24,250 1,023,108
PPL Corp. 19,580 923,784
-------------
TOTAL ELECTRIC UTILITIES 5,655,148
-------------
GAS UTILITIES 0.4%
KeySpan Corp.+ 29,630 1,161,496
-------------
TOTAL GAS UTILITIES 1,161,496
-------------
MULTI-UTILITIES 0.1%
Sempra Energy+ 9,650 349,234
-------------
TOTAL MULTI-UTILITIES 349,234
-------------
TOTAL UTILITIES 7,165,878
-------------
TOTAL COMMON STOCKS
(Cost $221,456,271) 249,222,583
-------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENTS 3.5%
Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 58,046 58,046
1.71% due 10/01/04 4,849,979 4,849,979
1.70% due 10/01/04 4,849,979 4,849,979
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $9,758,004) 9,758,004
-------------
SECURITIES LENDING COLLATERAL 23.7%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 9) 65,505,491 65,505,491
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $65,505,491) 65,505,491
=============
TOTAL INVESTMENTS 117.2%
(Cost $296,719,766) $ 324,486,078
-------------
LIABILITIES IN EXCESS OF
OTHER ASSETS - (17.2)% $ (47,734,739)
=============
NET ASSETS - 100.0% $ 276,751,339
See Notes to Financial Statements.
94 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2004 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $166,506,300) 2,988 $ (382,961)
=============
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE
9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 95
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
URSA MASTER PORTFOLIO
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 76.7%
Fannie Mae*
1.52% due 10/06/04 $ 50,000,000 $ 49,989,445
1.50% due 10/08/04 50,000,000 49,985,417
1.62% due 10/14/04 50,000,000 49,970,750
1.55% due 10/27/04 50,000,000 49,944,028
1.48% due 10/20/04 25,000,000 24,980,472
Federal Home Loan Bank*
1.70% due 10/13/04 100,000,000 99,943,333
1.55% due 10/29/04 50,000,000 49,939,722
1.52% due 10/13/04 25,000,000 24,987,333
Freddie Mac*
1.56% due 10/26/04 50,000,000 49,945,833
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $449,686,333) 449,686,333
-------------
REPURCHASE AGREEMENTS 20.8%
Repurchase Agreement (Note 6)
1.72% due 10/01/04+ 23,244,982 23,244,982
1.71% due 10/01/04 49,273,031 49,273,031
1.70% due 10/01/04 49,273,031 49,273,031
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $121,791,044) 121,791,044
-------------
TOTAL INVESTMENTS 97.5%
(Cost $571,477,377) $571,477,377
=============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 2.5% $ 14,753,466
=============
NET ASSETS - 100.0% $586,230,843
- -------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2004 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $456,387,750) 8,190 $ 2,904,088
------------
UNITS
-----
EQUITY INDEX SWAP AGREEMENT
October 2004 S&P 500 Index
Swap, Maturing 10/28/04**
(Notional Market Value
$130,229,794) 116,842 $ (1,299,769)
------------
* THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL
CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
** PRICE RETURN BASED ON S&P 500 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30,
2004.
See Notes to Financial Statements.
96 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
ARKTOS MASTER PORTFOLIO
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 43.0%
Federal Home Loan Bank*
1.55% due 10/01/04 $ 50,000,000 $ 50,000,000
1.70% due 10/08/04 25,000,000 24,991,736
Freddie Mac*
1.70% due 10/12/04 50,000,000 49,974,028
------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $124,965,764) 124,965,764
------------
CONTRACTS
---------
OPTIONS PURCHASED 0.0%
Call Options on:
December 2004 Nasdaq 100
Index Futures Contracts
Expiring December 2004 with
strike price of 2200 100 500
------------
TOTAL OPTIONS PURCHASED
(Cost $1,400) 500
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 54.5%
Repurchase Agreement (Note 6)
1.72% due 10/01/04+ $ 15,759,718 15,759,718
1.71% due 10/01/04 71,437,434 71,437,434
1.70% due 10/01/04 71,437,434 71,437,434
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $158,634,586) 158,634,586
------------
TOTAL INVESTMENTS 97.5%
(Cost $283,601,750) $283,600,850
============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 2.5% $ 7,203,673
============
NET ASSETS - 100.0% $290,804,523
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2004 Nasdaq 100 Mini
Futures Contracts
(Aggregate Market Value of
Contracts $93,880,800) 3,315 $ (689,667)
============
UNITS
------------
EQUITY INDEX SWAP AGREEMENT
October 2004 Nasdaq 100 Index
Swap, Maturing 10/12/04**
(Notional Market Value
$197,133,433) 139,540 $ 206,929
============
* THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL
CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
** PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30,
2004.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 97
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
JUNO MASTER PORTFOLIO
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 89.2%
Fannie Mae*
1.53% due 10/01/04 $ 100,000,000 $ 100,000,000
1.55% due 10/01/04 100,000,000 100,000,000
1.55% due 10/07/04 100,000,000 99,974,167
1.58% due 10/13/04 100,000,000 99,947,333
1.78% due 12/15/04 100,000,000 99,629,167
1.67% due 10/08/04 50,000,000 49,983,764
1.52% due 10/13/04 50,000,000 49,974,667
1.68% due 10/15/04 50,000,000 49,967,333
Farmer Mac*
1.45% due 10/04/04 22,000,000 21,997,342
Federal Farm Credit Bank*
1.65% due 10/04/04 100,000,000 99,986,250
1.50% due 10/01/04 50,000,000 50,000,000
1.59% due 10/13/04 50,000,000 49,973,500
1.64% due 10/20/04 50,000,000 49,956,722
Federal Home Loan Bank*
1.71% due 10/06/04 100,000,000 99,976,250
1.70% due 10/12/04 100,000,000 99,948,056
1.70% due 10/13/04 100,000,000 99,943,333
1.70% due 10/15/04 100,000,000 99,934,084
1.70% due 10/18/04 100,000,000 99,919,722
1.70% due 10/20/04 100,000,000 99,910,278
1.56% due 11/10/04 100,000,000 99,826,666
1.51% due 10/01/04 50,000,000 50,000,000
1.46% due 10/05/04 50,000,000 49,991,889
1.52% due 10/08/04 50,000,000 49,985,222
1.62% due 10/08/04 50,000,000 49,984,250
1.65% due 10/08/04 50,000,000 49,983,958
1.68% due 10/13/04 50,000,000 49,972,000
1.73% due 10/27/04 50,000,000 49,937,528
1.71% due 11/01/04 50,000,000 49,926,375
1.50% due 10/27/04 25,000,000 24,972,917
Freddie Mac*
1.53% due 10/06/04 100,000,000 99,978,750
1.54% due 10/19/04 100,000,000 99,923,000
1.59% due 10/05/04 50,000,000 49,991,167
1.50% due 10/12/04 50,000,000 49,977,083
1.63% due 10/12/04 50,000,000 49,975,097
1.59% due 11/02/04 50,000,000 49,929,333
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $2,445,377,203) 2,445,377,203
-------------
MARKET
VALUE
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
OPTIONS PURCHASED 0.0%
Call Options on:
December 2004 U.S. Treasury Bond
Futures Contracts
Expiring December 2004 with
strike price 1280 7,476 $ 116,812
December 2004 U.S. Treasury
Bond Futures Contracts
Expiring December 2004 with
strike price 1260 1,755 27,422
December 2004 U.S. Treasury
Bond Futures Contracts
Expiring December 2004 with
strike price of 1240 200 3,125
------------
TOTAL OPTIONS PURCHASED
(Cost $192,197) 147,359
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 83.5%
Joint Repurchase Agreement (Note 6)
1.72% due 10/01/04 $ 1,697,191 1,697,191
1.71% due 10/01/04 141,809,610 141,809,610
1.70% due 10/01/04 141,809,610 141,809,610
Individual Repurchase Agreement
Lehman Brothers, Inc. at 1.30%
due 10/01/04
(Secured by U.S. Treasury Bonds, at a
rate of 5.375% and maturing 02/15/31,
as a collateral, with a market value
of $624,407,315) 612,140,000 612,140,000
Bear Stearns & Co., Inc. at 1.10%
due 10/01/04 (Secured by U.S.
Treasury Bonds, at a rate of 5.375%
and maturing 02/15/31, as a
collateral, with a market value
of $552,712,500) 541,875,000 541,875,000
Citigroup, Inc. at 1.00% due 10/01/04
(Secured by U.S. Treasury Bonds,
at a rate of 5.375% and maturing
02/15/31, as a collateral, with
a market value of
$866,029,372) 849,019,608 849,019,608
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,288,351,019) 2,288,351,019
-------------
See Notes to Financial Statements.
98 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
JUNO MASTER PORTFOLIO
MARKET
VALUE
(NOTE 1)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS 172.7%
(Cost $4,733,920,419) $ 4,733,875,581
---------------
LIABILITIES IN EXCESS OF
OTHER ASSETS - (72.7)% $(1,993,532,772)
---------------
NET ASSETS - 100.0% $ 2,740,342,809
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2004 U.S. Treasury
Bond Futures Contracts
(Aggregate Market Value of
Contracts $947,086,875) 8,442 $ (16,349,898)
===============
FACE
AMOUNT
---------
U.S. TREASURY OBLIGATIONS SOLD SHORT
U.S. Treasury Bond
(Market Value
$2,009,223,327) $1,876,135,000 $ 3,610,850
============
* THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL
CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 99
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- ------------- --------------
ASSETS
Securities at Value* (Note 1, 2, 6 and 9) $ 324,486,078 $ 571,477,377 $ 283,600,850 $4,733,875,581
Segregated Cash with Broker 8,553,600 26,208,000 9,944,950 12,616,836
Cash in Custodian Bank 329 733 391 --
Receivable for Futures Contracts Settlement (Note 1) -- 286,650 -- 3,700,732
Receivable for Shares Purchased 9,682,391 -- -- 14,183,062
Investment Income Receivable (Note 1) 296,458 5,777 7,520 75,760
Receivable from "Feeder" Fund -- -- -- 38
------------- -------------- ------------- --------------
TOTAL ASSETS 343,018,856 597,978,537 293,553,711 4,764,452,009
============= ============== ============= ==============
LIABILITIES
Short Sale at Market Value -- -- -- 2,009,223,327
Payable for Equity Index Swap Settlement (Note 1) -- 1,422,775 197,701 --
Payable for Futures Contracts Settlement (Note 1) 88,421 -- 33,151 --
Payable upon Return of Securities Loaned (Note 9) 65,505,491 -- -- --
Payable for Securities Purchased (Note 1) 501,717 -- -- --
Liability for Shares Redeemed -- 9,879,200 2,305,321 --
Investment Advisory Fee Payable (Note 4) 166,558 434,142 207,482 1,952,726
Custody Fees Payable 5,330 11,577 5,533 53,837
Interest Payable -- -- -- 12,879,310
------------- -------------- ------------- --------------
TOTAL LIABILITIES 66,267,517 11,747,694 2,749,188 2,024,109,200
------------- -------------- ------------- --------------
NET ASSETS $ 276,751,339 $ 586,230,843 $ 290,804,523 $2,740,342,809
============= ============== ============= ==============
ANALYSIS OF NET ASSETS
Paid-In Capital $ 495,084,604 $1,149,124,966 $ 444,367,763 $2,913,719,218
Undistributed Net Investment Income (Loss) 1,118,552 702,147 345,918 (35,544,358)
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (246,835,168) (565,200,589) (153,425,520) (125,048,165)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 27,383,351 1,604,319 (483,638) (12,783,886)
------------- -------------- ------------- --------------
NET ASSETS $ 276,751,339 $ 586,230,843 $ 290,804,523 $2,740,342,809
============= ============== ============= ==============
SHARES OUTSTANDING 6,614,439 9,819,166 4,775,783 79,300,517
NET ASSET VALUES $ 41.84 $ 59.70 $ 60.89 $ 34.56
* THE COST OF SECURITIES AT VALUE IS $296,719,766, $571,477,377, $283,601,750,
AND $4,733,920,419, RESPECTIVELY.
See Notes to Financial Statements.
100 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2004
- --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- ------------- --------------
INVESTMENT INCOME
Interest (Note 1) $ 162,247 $ 3,000,506 $ 1,525,544 $ 25,144,346
Interest from Securities Lending, net (Note 9) 13,913 -- -- --
Interest Related to Securities Sold Short -- -- -- (48,692,549)
Dividends (Note 1) 2,081,480 -- -- --
Other Income -- 2,346 1,569 --
------------- -------------- ------------- --------------
Total Income 2,257,640 3,002,852 1,527,113 (23,548,203)
------------- -------------- ------------- --------------
EXPENSES
Advisory Fees (Note 4) 1,106,068 2,242,975 1,151,599 11,692,390
Custodian Fees 33,872 57,730 29,596 303,765
------------- -------------- ------------- --------------
Total Expenses 1,139,940 2,300,705 1,181,195 11,996,155
------------- -------------- ------------- --------------
Net Investment Income (Loss) 1,117,700 702,147 345,918 (35,544,358)
============= ============== ============= ==============
REALIZED AND UNREALIZED
LOSS ON INVESTMENTS (NOTE 1)
Net Realized Loss on:
Investment Securities (85,425) (428,945) (9,075) (777,108)
Equity Index Swaps -- (4,421,446) (9,443,782) --
Futures Contracts (5,542,759) (14,216,624) (5,374,742) (31,855,499)
Securities Sold Short -- -- -- (29,881,492)
------------- -------------- ------------- --------------
Total Net Realized Loss (5,628,184) (19,067,015) (14,827,599) (62,514,099)
------------- -------------- ------------- --------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (7,137,126) 272,887 4,850 (18,350)
Equity Index Swaps -- (1,017,996) 4,880,790 --
Futures Contracts (1,816,987) 7,869,344 (253,936) (8,593,924)
Securities Sold Short -- -- -- (7,045,365)
------------- -------------- ------------- --------------
Net Change in Unrealized Appreciation (Depreciation) (8,954,113) 7,124,235 4,631,704 (15,657,639)
------------- -------------- ------------- --------------
Net Loss on Investments (14,582,297) (11,942,780) (10,195,895) (78,171,738)
------------- -------------- ------------- --------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (13,464,597) $ (11,240,633) $ (9,849,977) $ (113,716,096)
============= ============== ============= ==============
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 101
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER
PORTFOLIO PORTFOLIO
---------------------------- ----------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------ ------------- --------------- ---------------
FROM OPERATIONS
Net Investment Income (Loss) $ 1,117,700 $ 2,001,263 $ 702,147 $ 457,359
Net Realized Gain (Loss) on Investments (5,628,184) 68,768,506 (19,067,015) (179,451,413)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (8,954,113) 26,372,811 7,124,235 (1,544,687)
------------ ------------- --------------- ---------------
Net Increase (Decrease) in Net Assets from Operations (13,464,597) 97,142,580 (11,240,633) (180,538,741)
------------ ------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- (2,001,263) -- (358,769)
============ ============= =============== ===============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 537,228,135 843,312,217 627,586,720 1,810,929,200
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- 2,000,411 -- 358,768
COST OF SHARES REDEEMED (513,260,008) (844,999,096) (474,396,381) (1,715,171,812)
============ ============= =============== ===============
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 23,968,127 313,532 153,190,339 96,116,156
------------ ------------- --------------- ---------------
Net Increase (Decrease) in Net Assets 10,503,530 95,454,849 141,949,706 (84,781,354)
NET ASSETS--BEGINNING OF PERIOD 266,247,809 170,792,960 444,281,137 529,062,491
------------ ------------- --------------- ---------------
NET ASSETS--END OF PERIOD $276,751,339 $ 266,247,809 $ 586,230,843 $ 444,281,137
============ ============= =============== ===============
TRANSACTIONS IN SHARES
Shares Purchased 12,717,736 22,882,252 10,317,190 26,591,281
Shares Purchased Through Reinvestment -- 46,745 -- 5,066
------------ ------------- --------------- ---------------
Total Purchased 12,717,736 22,928,997 10,317,190 26,596,347
Shares Redeemed (12,381,122) (22,879,528) (7,971,890) (25,653,073)
------------ ------------- --------------- ---------------
Net Shares Purchased 336,614 49,469 2,345,300 943,274
------------ ------------- --------------- ---------------
+ UNAUDITED
ARKTOS MASTER JUNO MASTER
PORTFOLIO PORTFOLIO
---------------------------- ----------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
------------ ------------- --------------- ---------------
FROM OPERATIONS
Net Investment Income (Loss) $ 345,918 $ 157,526 $ (35,544,358) $ (25,151,819)
Net Realized Gain (Loss) on Investments (14,827,599) (73,450,902) (62,514,099) (47,089,829)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 4,631,704 157,395 (15,657,639) 1,433,752
------------ ------------- --------------- ---------------
Net Increase (Decrease) in Net Assets from Operations (9,849,977) (73,135,981) (113,716,096) (70,807,896)
------------ ------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
============ ============= =============== ===============
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 371,638,401 673,721,154 1,963,147,403 2,015,262,602
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- -- --
COST OF SHARES REDEEMED (333,340,060) (487,375,862) (554,930,444) (688,581,094)
============ ============= =============== ===============
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 38,298,341 186,345,292 1,408,216,959 1,326,681,508
------------ ------------- --------------- ---------------
Net Increase (Decrease) in Net Assets 28,448,364 113,209,311 1,294,500,863 1,255,873,612
NET ASSETS--BEGINNING OF PERIOD 262,356,159 149,146,848 1,445,841,946 189,968,334
------------ ------------- --------------- ---------------
NET ASSETS--END OF PERIOD $290,804,523 $ 262,356,159 $ 2,740,342,809 $1,445,841,946
============ ============= =============== ===============
TRANSACTIONS IN SHARES
Shares Purchased 5,973,333 10,063,195 52,797,834 54,919,947
Shares Purchased Through Reinvestment -- -- -- --
------------ ------------- --------------- ---------------
Total Purchased 5,973,333 10,063,195 52,797,834 54,919,947
Shares Redeemed (5,530,756) (7,410,835) (14,920,062) (18,583,233)
------------ ------------- --------------- ---------------
Net Shares Purchased 442,577 2,652,360 37,877,772 36,336,714
------------ ------------- --------------- ---------------
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 102 & 103
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
--------- ---------- -------------- --------------- ------------- ------------- -------------
NOVA MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ $ 42.41 $ .17 $ (.74) $ (.57) $ -- $ -- $ --
March 31, 2004 27.42 .32 14.99 15.31 (.32) -- (.32)
March 31, 2003 45.36 .31 (17.94) (17.63) (.31) -- (.31)
March 31, 2002 * 50.00 .34 (4.62) (4.28) (.36) -- (.36)
URSA MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ 59.44 .07 .19 .26 -- -- --
March 31, 2004 81.01 .06 (21.59) (21.53) (.04) -- (.04)
March 31, 2003 64.57 .46 16.44 16.90 (.46) -- (.46)
March 31, 2002 65.19 1.22 (.35) .87 (1.49) -- (1.49)
March 31, 2001 * 49.71 2.80 15.50 18.30 (2.82) -- (2.82)
ARKTOS MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ 60.55 .07 .27 .34 -- -- --
March 31, 2004 88.73 (1.93) (26.25) (28.18) -- -- --
March 31, 2003 85.18 6.71 16.02 22.73 (19.18) -- (19.18)
March 31, 2002 96.47 1.37 (8.93) (7.56) (3.73) -- (3.73)
March 31, 2001 * 53.67 3.70 42.92 46.62 (3.82) -- (3.82)
JUNO MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ 34.90 (.45) .11 (.34) -- -- --
March 31, 2004 37.35 (.61) (1.84) (2.45) -- -- --
March 31, 2003 46.25 (.41) (8.49) (8.90) -- -- --
March 31, 2002 45.39 .69 1.14 1.83 (.97) -- (.97)
March 31, 2001 * 49.91 2.72 (4.45) (1.73) (2.79) -- (2.79)
RATIOS TO
AVERAGE NET ASSETS:
------------------------------------
NET INCREASE NET ASSET NET NET ASSETS,
(DECREASE) IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF
NET ASSET END OF INVESTMENT GROSS NET INCOME TURNOVER PERIOD (000'S
VALUE PERIOD RETURN EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
------------- --------- ---------- -------- -------- ---------- --------- -------------
NOVA MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ $ (.57) $ 41.84 (1.34)% 0.77%** 0.77%** 0.76%** 263% $ 276,751
March 31, 2004 14.99 42.41 55.84% 0.78% 0.78% 0.81% 540% 266,248
March 31, 2003 (17.94) 27.42 (38.94)% 0.79% 0.79% 0.91% 603% 170,793
March 31, 2002 * (4.64) 45.36 (8.54)% 0.86%** 0.86%** 0.69%** 401% 291,992
URSA MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ .26 59.70 0.44% 0.92%** 0.92%** 0.28%** -- 586,231
March 31, 2004 (21.57) 59.44 (26.58)% 0.93% 0.93% 0.09% -- 444,281
March 31, 2003 16.44 81.01 26.21% 0.94% 0.94% 0.52% -- 529,062
March 31, 2002 (.62) 64.57 1.37% 0.94% 0.94% 1.90% -- 228,485
March 31, 2001 * 15.48 65.19 38.06% 0.95%** 0.95%** 5.11%** -- 225,040
ARKTOS MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ .34 60.89 0.56% 0.92%** 0.92%** 0.27%** -- 290,805
March 31, 2004 (28.18) 60.55 (31.76)% 0.93% 0.93% 0.10% -- 262,356
March 31, 2003 3.55 88.73 20.95% 0.94% 0.94% 0.51% -- 149,147
March 31, 2002 (11.29) 85.18 (8.03)% 0.94% 0.94% 1.63% -- 115,929
March 31, 2001 * 42.80 96.47 91.61% 0.96%** 0.95%** 6.58%** 1,788% 78,919
JUNO MASTER PORTFOLIO
SEPTEMBER 30, 2004 @ (.34) 34.56 (0.97)% 0.92%** 0.92%** (2.73)%** 45% 2,740,343
March 31, 2004 (2.45) 34.90 (6.56)% 0.93% 0.93% (3.39)% 187% 1,445,842
March 31, 2003 (8.90) 37.35 (19.24)% 0.94% 0.94% (2.72)% -- 189,968
March 31, 2002 .86 46.25 4.12% 0.93% 0.93% 1.61% -- 33,105
March 31, 2001 * (4.52) 45.39 (3.67)% 0.94%** 0.94%** 5.04%** -- 12,417
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 2000 --URSA MASTER PORTFOLIO,
ARKTOS MASTER PORTFOLIO, AND JUNO MASTER PORTFOLIO; AUGUST 1, 2001-- NOVA
MASTER PORTFOLIO.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE URSA MASTER
PORTFOLIO AND THE ARKTOS MASTER PORTFOLIO TYPICALLY HOLDS MOST OF ITS
INVESTMENTS IN OPTIONS AND FUTURES CONTRACTS WHICH ARE DEEMED SHORT-TERM
SECURITIES.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
@ UNAUDITED
See Notes to Financial Statements.
104 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is 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 is authorized to issue an
unlimited number of no par value shares. The Trust offers six separate classes
of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class
Shares, H-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, with the
exception of A-Class Shares. C-Class Shares have a 1% Contingent Deferred Sales
Charge ("CDSC") if Shares are redeemed within 12 months of purchase. A-Class
Shares are sold at net asset value, plus the applicable front-end sales charge.
The sales charge varies depending on the amount of your purchase, but will not
exceed 4.75%. A-Class Share purchases of $1 million or more have a 1% Contingent
Deferred Sales Charge ("CDSC") if Shares are redeemed within 18 months of
purchase. The current sales charge rates are as follows:
SALES CHARGE SALES CHARGE
AS % OF AS % OF NET
AMOUNT OF INVESTMENT OFFERING PRICE AMOUNT INVESTED
- -------------------- -------------- ---------------
Less than $100,000 4.75% 4.99%
$100,000 but less than $250,000 3.75% 3.90%
$250,000 but less than $500,000 2.75% 2.83%
$500,000 but less than $1,000,000 1.60% 1.63%
Greater than $1,000,000 0.00% 0.00%
At September 30, 2004, the Trust consisted of forty-three separate series:
twenty-two Benchmark Funds, one Money Market Fund, eighteen Sector Funds and two
Strategic Funds. This report covers the twenty-two 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 Stock Exchange ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the "NYSE", 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 are 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, usually as of 4:00 p.m., Eastern Time, on the
valuation date.
The value of domestic equity index swap agreements entered into by the funds is
accounted for using the unrealized gain or loss on the agreements that is
determined by marking the agreements to the last quoted value of the index that
the swap pertains to at the close of the NYSE, usually 4:00 p.m., Eastern Time.
The swap's market value is then adjusted to include dividends accrued, financing
charges and/or interest associated with the swap agreement.
The value of foreign equity index swap agreements entered into by the funds is
accounted for using the unrealized gain or loss on the agreements that is
determined by marking the agreements to the average price at which orders are
being filled (the "average fill price") at the close of the NYSE, usually 4:00
p.m., Eastern Time. The swap's market value is then adjusted to include
dividends accrued, financing charges and/or interest associated with the swap
agreement.
Short-term securities, if any, are valued at amortized cost, which approximates
market value. Securities and assets, including index options, 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 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 RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 105
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 a
written 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 Trust 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 a 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 Trust 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 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, A-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 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.
106 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 Statements 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, discount notes,
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. MASTER-FEEDER ARRANGEMENT
Currently, the Nova Fund, the Ursa Fund, the Juno Fund, and the Arktos 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 in conjunction 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, the Ursa Fund, the Arktos Fund, and the Juno Fund, respectively,
at September 30, 2004, 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, the Small-Cap Value Fund, the
Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap Growth Fund, the
Mid-Cap Growth Fund, the Large-Cap Growth 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 Inverse Small-Cap Fund,
the Inverse Mid-Cap Fund, the Ursa Master Portfolio, the Arktos Master
Portfolio, and the Juno Master Portfolio. For the period ending September 30,
2004, the Advisor voluntarily reimbursed $25,896 of miscellaneous expenses in
the Institutional Class of the U.S. Government Money Market Fund. These fees are
permanently reimbursed and are not subject to recapture by the Advisor. Certain
officers and trustees of the Trust are also officers of Rydex Global Advisors.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent and administrative 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 Inverse Mid-Cap Fund, the Mekros Fund, the
Inverse Small-Cap Fund, the Juno Fund, the Large-Cap Europe Fund, the Large-Cap
Japan Fund, the Small-
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 107
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Cap Value Fund, the Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap
Growth Fund, the Mid-Cap Growth Fund, and the Large-Cap Growth Fund. For the
period ended September 30, 2004, the Sevicer voluntarily waived transfer agent
service fees in the amount of $50,000 in the Institutional Class of the U.S.
Government Money Market Fund. These fees are permanently waived and not subject
to recapture by the Servicer.
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 Funds. For the period
ended September 30, 2004, the Servicer voluntarily waived accounting fees in the
amount of $12,702 in the Institutional Class of the U.S. Government Money Market
Fund. These fees are permanently waived and not subject to recapture by the
Servicer . Certain officers and trustees of the Trust are also officers 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 A-Class Shares and
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. 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. For the
period ended September 30, 2004, the Distributor voluntarily waived $283,204 of
12b-1 expenses in the Advisor Class and $23 of 12b-1 expenses in the A-Class of
the U.S. Government Money Market Fund. These fees are permanently waived and are
not subject to recapture by the Distributor.
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 the
shareholder's financial advisor for providing on-going services to the
shareholder. The annual 0.75% distribution fee reimburses the Distributor for
paying the shareholder's financial advisor an on-going sales commission. The
Distributor advances the first year's service and distribution fees. The
Distributor retains the service and distribution fees on accounts with no
authorized dealer of record. For the period ended September 30, 2004, the
Distributor waived $569,947 of C-Class Plan expenses in the C-Class of the U.S.
Government Money Market Fund. These fees are permanently waived and not subject
to recapture by the Distributor. Certain officers and trustees of the Trust are
also officers of Rydex Distributors, Inc.
5. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income and capital gains to 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 derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
Permanent book and tax basis differences, if any, 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. 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.
108 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At September 30, 2004, 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..................... $ 211,933,119 $ 64,818,220 $ -- $ 64,818,220
Ursa Fund..................... 744,809,241 -- (158,578,398) (158,578,398)
OTC Fund...................... 785,042,171 394,513,226 (4,820,672) 389,692,554
Arktos Fund................... 379,095,937 -- (88,291,414) (88,291,414)
Medius Fund................... 36,949,578 4,068,690 (180,644) 3,888,046
Inverse Mid-Cap Fund.......... 4,251,654 -- (41,990) (41,990)
Mekros Fund................... 129,075,090 7,876,550 (3,119,798) 4,756,752
Inverse Small-Cap Fund........ 32,948,517 -- (537,727) (537,727)
U.S. Government Bond Fund..... 145,959,675 8,035,714 -- 8,035,714
Juno Fund..................... 2,943,621,092 -- (203,278,283) (203,278,283)
Large-Cap Europe Fund......... 30,666,029 635,606 -- 635,606
Large-Cap Japan Fund.......... 48,267,459 -- (1,488,854) (1,488,854)
Small-Cap Value Fund.......... 126,463,007 872,562 (1,234,041) (361,479)
Mid-Cap Value Fund............ 56,369,139 -- (856,504) (856,504)
Large-Cap Value Fund.......... 131,092,472 868,865 (1,138,465) (269,600)
Small-Cap Growth Fund......... 99,470,960 1,121 (1,311,818) (1,310,697)
Mid-Cap Growth Fund........... 64,918,346 852,007 (749,870) 102,137
Large-Cap Growth Fund......... 7,121,110 -- (1,465,086) (1,465,086)
U.S.Government Money Market
Fund....................... 1,636,234,448 -- -- --
Nova Master Portfolio......... 296,996,613 30,158,137 (3,051,633) 27,106,504
Ursa Master Portfolio......... 571,477,377 1,604,319 -- 1,604,319
Arktos Master Portfolio....... 283,601,750 -- (483,638) (483,638)
Juno Master Portfolio......... 4,792,953,037 -- (71,816,504) (71,816,504)
6. REPURCHASE AGREEMENTS
The Funds transfer uninvested cash balances into a single joint account, along
with the uninvested cash balance of the Core Equity Fund (included in the Trust,
but contained in a separate report). The daily aggregate balance is invested in
one or more repurchase agreements collateralized by obligations of the U.S.
Treasury. The collateral is in the possession of the Trusts' custodian and is
evaluated daily to ensure that its market value exceeds the delivery value of
the repurchase agreement at maturity.
The repurchase agreements that were executed by the joint account and
outstanding as of September 30, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------ ------------------ ------------ ------------ --------------
Morgan Stanley, Inc. 1.71% due 10/01/04 $345,000,000 $345,000,000 $ 345,016,388
Smith Barney 1.70% due 10/01/04 345,000,000 345,000,000 345,016,292
Lehman Brothers, Inc. 1.72% due 10/01/04 4,128,991 4,128,991 4,129,189
================== ============ ============ ==============
$694,128,991 $694,161,869
============ ==============
As of September 30, 2004, 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 5.375% $325,215,000 $352,056,771
U. S. Treasury Notes 1.500% - 2.000% 350,350,369 357,494,373
================ ============ ============
$709,551,144
============
THE RYDEX SERIES FUNDS SEMIANNUAL REPORT | 109
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The Funds transfer uninvested cash balances into a single joint account. The
daily aggregate balance is invested in one or more repurchase agreements
collateralized by obligations of the U.S. Treasury. The collateral is in the
possession of the Trust's custodian and is evaluated daily to ensure that its
market value exceeds the delivery value of the repurchase agreement at maturity.
The repurchase agreements that were executed by the joint account and
outstanding as of September 30, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------ ------------------ ------------ ------------ --------------
Lehman Brothers, Inc. 1.72% due 10/01/04 $45,448,421 $45,448,421 $45,450,593
================== ============ ============ ==============
$45,448,421 $45,450,593
============ ==============
As of September 30, 2004, 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 6.125% - 6.375% $ 37,140,000 $ 44,199,065
U. S. Treasury Notes 3.00% 1,845,000 2,160,443
================ ============ ============
$ 46,359,508
============
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.
7. SECURITIES TRANSACTIONS
During the period ended September 30, 2004, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
INVERSE INVERSE U.S. LARGE-CAP LARGE-CAP
OTC MEDIUS MID-CAP MEKROS SMALL-CAP GOVERNMENT EUROPE JAPAN
FUND FUND FUND FUND FUND BOND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------ ------------ ---------
Purchases $629,810,704 $215,661,834 $ -- $395,295,903 $ -- $328,057,612 $ -- $ --
Sales $677,133,146 $241,308,893 $ -- $428,391,542 $ -- $259,666,965 $ -- $ --
U.S.
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP MID-CAP LARGE-CAP GOVERNMENT
VALUE VALUE VALUE GROWTH GROWTH GROWTH MONEY
FUND FUND FUND FUND FUND FUND MARKET FUND
------------ ------------ ------------ ------------ ------------ ------------ ------------
Purchases $265,092,038 $199,934,213 $287,680,253 $244,571,101 $119,640,742 $206,845,837 $ --
Sales $171,208,928 $168,220,055 $185,589,946 $157,985,170 $ 64,321,045 $201,884,311 $ --
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ --------------
Purchases $701,603,670 $ -- $ -- $1,767,600,013
Sales $696,349,597 $ -- $ -- $ 828,096,470
110 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
8. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares.
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
------------------------------ ---------------------------------------
Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31,
2004 2004 2004 2004
------------- ------------- ------------- ------------
NOVA FUND
Investor Class 31,161,616 67,357,207 -- 1,744
Advisor Class 7,923,414 15,207,769 -- 481
A-Class 462,562 43*** -- --
C-Class 3,711,359 9,610,613 -- 300
URSA FUND
Investor Class 105,875,902 231,991,260 -- 1,231,642
Advisor Class 16,434,243 25,481,658 -- 148,589
A-Class 956,982 113*** -- --
C-Class 12,431,176 28,760,680 -- 117,706
OTC FUND
Investor Class 74,741,273 187,487,977 -- --
Advisor Class 12,144,297 16,736,615 -- --
A-Class 187,214 106*** -- --
C-Class 6,989,854 18,113,943 -- --
ARKTOS FUND
Investor Class 21,810,616 43,953,006 -- --
Advisor Class 2,886,459 1,082,356* -- --
A-Class 226,389 39*** -- --
C-Class 4,160,524 5,688,199 -- --
MEDIUS FUND
A-Class 14,750 136*** -- --
C-Class 2,548,001 5,910,213 -- --
H-Class 17,484,572 37,923,012 -- --
INVERSE MID-CAP FUND
A-Class 8,117 20*** -- --
C-Class 239,805 10,119** -- --
H-Class 1,593,612 477,713** -- --
MEKROS FUND
A-Class 105,876 147*** -- --
C-Class 5,232,868 19,364,591 -- --
H-Class 62,513,517 121,252,681 -- --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
------------------------------ ---------------------------------------
Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31,
2004 2004 2004 2004
------------- ------------- ------------- ------------
NOVA FUND
Investor Class (31,585,005) (68,032,795) (423,389) (673,844)
Advisor Class (7,469,749) (15,015,450) 453,665 192,800
A-Class (98,693) -- 363,869 43***
C-Class (3,437,792) (9,041,407) 273,567 569,506
URSA FUND
Investor Class (93,527,666) (230,807,881) 12,348,236 2,415,021
Advisor Class (14,613,131) (23,673,595) 1,821,112 1,956,652
A-Class (257,987) -- 698,995 113***
C-Class (11,813,366) (25,119,522) 617,810 3,758,864
OTC Fund
Investor Class (77,402,013) (192,409,806) (2,660,740) (4,921,829)
Advisor Class (15,123,220) (17,050,053) (2,978,923) (313,438)
A-Class (92,375) -- 94,839 106***
C-Class (7,136,406) (17,876,604) (146,552) 237,339
ARKTOS FUND
Investor Class (20,698,407) (39,652,718) 1,112,209 4,300,288
Advisor Class (2,563,592) (380,192)* 322,867 702,164*
A-Class (82,076) -- 144,313 39***
C-Class (4,677,952) (4,376,063) (517,428) 1,312,136
MEDIUS FUND
A-Class (5,586) -- 9,164 136***
C-Class (2,652,073) (5,743,848) (104,072) 166,365
H-Class (18,596,265) (36,425,611) (1,111,693) 1,497,401
INVERSE MID-CAP FUND
A-Class (4,894) -- 3,223 20***
C-Class (240,077) (7,314)** (272) 2,805**
H-Class (1,532,827) (423,065)** 60,785 54,648**
MEKROS FUND
A-Class (65,495) -- 40,381 147***
C-Class (6,233,853) (18,520,133) (1,000,985) 844,458
H-Class (64,252,715) (117,084,903) (1,739,198) 4,167,778
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003.
** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 111
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
---------------------------- ---------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004 2004 2004 2004
------------- ------------ ------------- ------------
INVERSE SMALL-CAP FUND
A-Class 41,487 20*** -- --
C-Class 1,536,940 351,994** -- --
H-Class 8,803,830 1,004,310** -- --
U.S. GOVERNMENT BOND FUND
Investor Class 34,539,202 87,071,724 82,196 151,723
Advisor Class 17,537,475 15,427,166* 65,657 25,684*
A-Class 99,362 90*** 364 --
C-Class 5,858,713 6,731,059 11,155 10,600
JUNO FUND
Investor Class 104,872,571 131,573,796 -- --
Advisor Class 10,259,440 5,230,222* -- --
A-Class 6,854,432 256,554*** -- --
C-Class 32,311,213 30,540,629 -- --
LARGE-CAP EUROPE FUND
A-Class 8,824 67*** -- --
C-Class 2,188,669 2,958,449 -- 7,972
H-Class 8,631,667 27,246,596 -- 213,700
LARGE-CAP JAPAN FUND
A-Class 6,913 1,579*** -- --
C-Class 489,260 605,176 -- 638
H-Class 11,163,446 23,930,244 -- 9,823
SMALL-CAP VALUE FUND
A-Class+ 694 -- -- --
C-Class 631,378 219,914** -- --
H-Class 13,531,256 1,980,061** -- --
MID-CAP VALUE FUND
A-Class+ 41 -- -- --
C-Class 1,237,203 201,326** -- --
H-Class 8,664,234 2,240,099** -- --
LARGE-CAP VALUE FUND
A-Class+ 41 -- -- --
C-Class 1,009,478 274,300** -- --
H-Class 13,538,732 1,686,564** -- --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
------------------------------ -------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004 2004 2004 2004
------------- ------------ ------------- ------------
INVERSE SMALL-CAP FUND
A-Class (36,521) -- 4,966 20***
C-Class (1,189,923) (341,910)** 347,017 10,084**
H-Class (8,564,623) (900,755)** 239,207 103,555**
U.S. GOVERNMENT BOND FUND
Investor Class (33,949,793) (89,630,083) 671,605 (2,406,636)
Advisor Class (11,281,273) (11,225,262)* 6,321,859 4,227,588*
A-Class (66,127) -- 33,599 90***
C-Class (5,644,764) (6,592,487) 225,104 149,172
JUNO FUND
Investor Class (68,741,331) (92,203,564) 36,131,240 39,370,232
Advisor Class (5,896,912) (2,576,313)* 4,362,528 2,653,909*
A-Class (943,224) -- 5,911,208 256,554***
C-Class (10,680,543) (7,996,442) 21,630,670 22,544,187
LARGE-CAP EUROPE FUND
A-Class (1,258) -- 7,566 67***
C-Class (2,199,148) (3,030,695) (10,479) (64,274)
H-Class (8,959,057) (25,538,506) (327,390) 1,921,790
LARGE-CAP JAPAN FUND
A-Class (1,770) -- 5,143 1,579***
C-Class (423,631) (444,211) 65,629 161,603
H-Class (15,103,499) (19,224,952) (3,940,053) 4,715,115
SMALL-CAP VALUE FUND
A-Class+ -- -- 694 --
C-Class (644,480) (133,674)** (13,102) 86,240**
H-Class (9,877,973) (1,203,331)** 3,653,283 776,730**
MID-CAP VALUE FUND
A-Class+ -- -- 41 --
C-Class (1,181,042) (173,062)** 56,161 28,264**
H-Class (7,423,563) (1,521,276)** 1,240,671 718,823**
LARGE-CAP VALUE FUND
A-Class+ -- -- 41 --
C-Class (1,014,548) (169,190)** (5,070) 105,110**
H-Class (9,333,077) (1,361,036)** 4,205,655 325,528**
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003.
** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
+ SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
112 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
------------------------------ ---------------------------------------
Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31,
2004 2004 2004 2004
------------- -------------- ------------- ------------
SMALL-CAP GROWTH FUND
A-Class*** 41 -- -- --
C-Class 945,437 175,753* -- --
H-Class 11,115,580 191,728* -- --
MID-CAP GROWTH FUND
A-Class*** 42 -- -- --
C-Class 516,451 180,817* -- --
H-Class 4,955,619 137,463* -- --
LARGE-CAP GROWTH FUND
A-Class*** 43 -- -- --
C-Class 1,161,029 37,893* -- --
H-Class 8,815,044 85,377* -- --
U.S. GOVERNMENT MONEY
MARKET FUND
Investor Class 9,638,090,375 20,632,372,433 1,745,051 2,043,352
Advisor Class 1,818,601,048 4,386,273,780 38,308 13,574
A-Class 7,843,813 1,000** 3,098 --
C-Class 1,336,870,247 3,269,540,461 4,153 8,818
Institutional Class 1,000 -- -- 28,440
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
-------------------------------- ---------------------------------------
Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31,
2004 2004 2004 2004
-------------- --------------- ------------- ------------
SMALL-CAP GROWTH FUND
A-Class*** -- -- 41 --
C-Class (882,844) (76,864)* 62,593 98,889*
H-Class (7,705,861) (91,324)* 3,409,719 100,404*
MID-CAP GROWTH FUND
A-Class*** -- -- 42 --
C-Class (502,736) (134,208)* 13,715 46,609*
H-Class (2,662,150) (112,652)* 2,293,469 24,811*
LARGE-CAP GROWTH FUND
A-Class*** -- -- 43 --
C-Class (1,131,599) (37,889)* 29,430 4*
H-Class (8,646,634) (52,595)* 168,410 32,782*
U.S. GOVERNMENT MONEY
MARKET FUND
Investor Class (9,547,221,202) (20,796,030,722) 92,614,224 (161,614,937)
Advisor Class (1,820,253,258) (4,324,201,196) (1,613,902) 62,086,158
A-Class (3,721,348) -- 4,125,563 1,000**
C-Class (1,299,397,941) (3,340,221,449) 37,476,459 (70,672,170)
Institutional Class -- (10,036,610) 1,000 (10,008,170)
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 113
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
9. 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, 2004, the pooled cash
collateral investments consisted of repurchase agreements (41.98%), commercial
paper (27.65%), fixed income notes (24.41%), corporate bonds (5.95%) and mutual
funds (0.01%). Collateral is maintained over the life of the loan in an amount
not less than the value of loaned securities, as determined at the close of fund
business each day; any additional collateral required due to changes in security
values is delivered to the fund the next business day. Although the collateral
mitigates risk, the Trust could experience a delay in recovering its securities
and a possible loss of income or value if the borrower fails to return the
securities. The Trust has the right under the securities lending agreement to
recover the securities from the borrower on demand.
At September 30, 2004 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ---- ------------ ------------
OTC Fund $325,347,018 $314,683,791
Medius Fund 4,176,485 4,053,681
Mekros Fund 10,494,337 9,985,965
Small-Cap Value Fund 8,100,047 7,831,510
Mid-Cap Value Fund 4,875,792 4,711,067
Large-Cap Value Fund 15,604,006 15,106,679
Small-Cap Growth Fund 5,820,355 5,611,435
Mid-Cap Growth Fund 8,186,705 7,927,622
Large-Cap Growth Fund 189,731 183,871
Nova Master Portfolio 65,505,491 63,510,596
114 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
UNAUDITED PROXY VOTING INFORMATION
- --------------------------------------------------------------------------------
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 115
UNAUDITED INFORMATION ON
BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Each Trust is served by a separate Board of Trustees composed of six members.
The membership of each Board is the same. There is no stated term of service,
and Trustees continue to serve after election until resignation. The Statement
of Additional Information includes further information about Fund Trustees and
Officers, and can be obtained without charge by calling (800) 820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEE AND OFFICER
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- --------------------------- --------------
Carl G. Verboncoeur* Rydex Series Funds - 2004 100
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex
Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex
Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund
Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and
Rydex Distributors, Inc., (1997 to 2000)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- --------------------------- --------------
Corey A. Colehour Rydex Series Funds - 1993 100
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
===========================
J. Kenneth Dalton Rydex Series Funds - 1995 100
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
===========================
John O. Demaret Rydex Series Funds - 1997 101
Trustee (1940) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners
Sphinx Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
===========================
Patrick T. McCarville Rydex Series Funds - 1997 100
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
===========================
116 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
UNAUDITED INFORMATION ON
BOARD OF TRUSTEES AND OFFICERS (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- --------------------------- --------------
Roger Somers Rydex Series Funds - 1993 100
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS
YEAR OF BIRTH DURING PAST FIVE YEARS
- ------------------ ----------------------------------------------------------------------
NICK BONOS* Vice President and Treasurer of Rydex Series Funds, Rydex Variable
Vice President and Treasurer (1963) Trust, Rydex Dynamic Funds, Rydex ETF Trust, and Rydex Capital
Partners SPhinX Fund, 2003 to present; Senior Vice President of Rydex
Fund Services, Inc., 2003 to present;Vice President of Accounting of
Rydex Fund Services, Inc., 2000 to 2003;Vice President of Mutual Fund
Services, State Street Corp., 1997 to 1999.
MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex
Vice President and Secretary (1970) Dynamic Funds, 2004 to present;Vice President of Rydex Series Funds,
1997 to present;Vice President of Rydex Variable Trust, 1998 to
present; Vice President of Rydex Dynamic Funds, 1999 to present;Vice
President of Rydex ETF Trust, 2002 to present; President and Trustee
of Rydex Capital Partners SPhinX Fund, 2003 to present; President of
Rydex Global Advisors, 2004 to present; Chief Operating Officer of
Rydex Global Advisors and Rydex Distributors, Inc., 2003 to 2004.
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable Trust, and
Chief Compliance Officer and Rydex Dynamic Funds, 2004 to present; Assistant Secretary of Rydex
Assistant Secretary (1967) Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds, 2000 to
present; Assistant Secretary of Rydex ETF Trust, 2002 to present.
Secretary of Rydex Capital Partners SPhinX Fund, 2003 to present.Vice
President of Compliance of Rydex Fund Services, Inc., 2000 to present;
Vice President Fund Administration, Chase Global Funds Services Co., a
division of Chase Manhattan Bank NA, 1994 to 1999.
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST,
WITHIN THE MEANING OF SECTION 2(A)(19) OF THE 1940 ACT, INASMUCH AS THIS PERSON
IS AFFILIATED WITH THE ADVISOR.
117 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
[LOGO] RYDEXInvestments
Essential for modern markets(TM)
9601 Blackwell Road
Suite 500
Rockville, MD 20850
800.820.0888
www.rydexinvestments.com
THE RYDEX SERIES FUNDS
- --------------------------------------------------------------------------------
SECTOR FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 2004
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
REAL ESTATE FUND
RETAILING FUND
TECHNOLOGY FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
UTILITIES FUND
[RydexInvestments LOGO]
RSECF-SEMI-0904 Essential for modern markets(TM)
This report and the financial statements contained herein are submitted for the
general information of our shareholders. The report is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ................................................ 2
ABOUT SHAREHOLDERS FUND'S EXPENSES ........................................ 3
FUND PROFILES ............................................................. 9
SCHEDULES OF INVESTMENTS .................................................. 19
STATEMENTS OF ASSETS AND LIABILITIES ...................................... 46
STATEMENTS OF OPERATIONS .................................................. 50
STATEMENTS OF CHANGES IN NET ASSETS ....................................... 54
FINANCIAL HIGHLIGHTS ...................................................... 60
NOTES TO FINANCIAL STATEMENTS ............................................. 69
UNAUDITED PROXY VOTING INFORMATION ........................................ 77
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ................... 78
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The U.S. economy reached a more mature phase of the business cycle during the
six-month period ending September 30, 2004. This phenomenon was marked by lower
realized and forecasted gross domestic product (GDP) growth rates, reduced
forecasts for future corporate earnings growth and a cumulative reported one
million jobs created during the period. The Federal Reserve (Fed), observing
these changes, raised the Fed Funds rate three times between June 30 and
September 21.
Equity investors reacted to slowing growth by shifting their style preference
from high-growth to value stocks. As a result of investors' shift toward value
stocks, the information technology sector suffered significant price declines in
all industries but most acutely in semiconductors. Correspondingly, Rydex
Electronics Fund Investor Class and Rydex Technology Fund Investor Class
returned -27.40% and -13.33%, respectively, during the semi-annual period.
Equity markets moved in a tight trading range over the period. Most broad-based
equity indices ended the period with slightly negative returns. The S&P 500(R)
Index was down slightly, returning -0.18% over the period. Large-cap stocks
tended to outperform small-cap stocks and the S&P 500 outperformed the S&P
MidCap 400(TM) and Russell 2000(R) indices, which returned -1.15% and -2.40%,
respectively. Political and economic uncertainty led investors to return to the
relative safety of large-cap stocks. The S&P 500 also outperformed the Nasdaq
100 Index(R), which posted a return of -1.79%.
There was good news, though. Between the end of March and September, the
unemployment rate experienced a slight decline, moving from 5.6% to 5.4%. The
improvement was driven in part by a 2.8% rebound in manufacturing payrolls.
Oil prices increased almost 40% in the last six months. Despite the threat this
development poses to continued stable economic growth, market reactions were
muted. Implied volatility in financial markets, as measured by the VIX--which
measures the volatility of the U.S. equity market--reached the lowest levels
seen since 1995.
While the longer-term broad market reaction to oil prices was reserved,
individual sectors responded dramatically. Year-over-year energy sector earnings
grew 60% during the quarterly period ending June 2004. Investors responded by
marking up energy stocks significantly. The sector, which returned 19.4% for the
period, greatly outperformed the S&P 500. Rydex Energy Services Fund Investor
Class and Rydex Energy Fund Investor Class benefited significantly as well,
returning 18.63% and 18.34%, respectively.
Industrials also performed well, up 8.4%. Other sectors that performed well
included basic materials, which was up 6.2%, telecommunication services (5.4%)
and utilities (5.1%). Information technology and consumer staples experienced
some difficult times, finishing down 7.3% and down 5.1%, respectively. Health
care (-2.8%), financials (-2%) and consumer discretionary (-1.5%) also
underperformed the S&P 500.
Though five sectors had positive returns and five sectors had negative returns,
investors should not assume that sector investing was flat. Not only was the
spread between the best and worst sector fairly large (26.7%), but the sectors
that outperformed only represent 27% of the S&P 500's market capitalization.
As always, we 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
President
2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES
- --------------------------------------------------------------------------------
All mutual funds have operating expenses and it is important for our
shareholders to understand the impact of costs on their investments. As a
shareholder of the fund, you may incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, reinvested
dividends, or other distributions; redemption fees; and exchange fees; and (2)
ongoing costs, including management fees, administrative services, and
shareholder reports, among others. Operating expenses, which are deducted from a
fund's gross income, reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 made at the beginning of the
period and held for the entire six-month period beginning March 31, 2004 and
ending September 30, 2004.
The following tables illustrate your fund's costs in two ways:
TABLE 1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the
actual expenses that you paid over the period. The "Ending Account Value"
shown is derived from the fund's actual return, and the fourth column
shows the dollar amount that would have been paid by an investor who
started with $1,000 in the fund. You may use the information here,
together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply
the result by the number given for your fund under the heading "Expenses
Paid During Period."
Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are
charged an annual $15 maintenance fee. Upon liquidating your retirement
account, a $15 account-closing fee will be taken from the proceeds of your
redemption.
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help
you compare your fund's cost with those of other mutual funds. The table
provides information about hypothetical account values and hypothetical
expenses based on the fund's actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid during the
period. In addition, certain retirement plans such as IRA, Roth IRA and
403(b) accounts are charged an annual $15 maintenance fee. Upon
liquidating your retirement account, a $15 account-closing fee will be
taken from the proceeds of your redemption. The example is useful in
making comparisons because the Securities Exchange Commission requires all
mutual funds to calculate expenses based on the 5% return. You can assess
your fund's costs by comparing this hypothetical example with the
hypothetical examples that appear in shareholder reports of other funds.
The calculations above assume no shares were bought or sold during the period.
Your actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
Note that the expenses shown in the table are meant to highlight and help you
compare ongoing costs only and do not reflect any transactional costs which may
be incurred by some of the fund's classes. These costs may include, but are not
limited to, sales charges (loads), redemption fees, and exchange fees.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
You can find more information about the fund's expenses, including annual
expense ratios for the past five years, in the Financial Highlights section of
this report. For additional information on operating expenses and other
shareholder costs, please refer to the appropriate fund prospectus.
TABLE 1. BASED ON ACTUAL FUND RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- --------------------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 1.36% $1,000.00 $1,028.30 $ 6.92
Advisor Class 1.86% 1,000.00 1,026.40 9.45
A-Class 1.63% 1,000.00 1,005.00 8.19
C-Class 2.35% 1,000.00 1,022.30 11.91
BASIC MATERIALS FUND
Investor Class 1.35% 1,000.00 1,088.80 7.07
Advisor Class 1.85% 1,000.00 1,086.10 9.67
A-Class 1.61% 1,000.00 1,046.50 8.26
C-Class 2.35% 1,000.00 1,083.50 12.27
BIOTECHNOLOGY FUND
Investor Class 1.35% 1,000.00 929.50 6.53
Advisor Class 1.85% 1,000.00 927.50 8.94
A-Class 1.58% 1,000.00 1,030.20 8.04
C-Class 2.35% 1,000.00 925.20 11.34
CONSUMER PRODUCTS FUND
Investor Class 1.35% 1,000.00 952.60 6.61
Advisor Class 1.85% 1,000.00 950.30 9.04
A-Class 1.60% 1,000.00 970.10 7.90
C-Class 2.35% 1,000.00 948.10 11.48
ELECTRONICS FUND
Investor Class 1.35% 1,000.00 726.00 5.84
Advisor Class 1.85% 1,000.00 724.30 8.00
A-Class 1.73% 1,000.00 1,022.80 8.77
C-Class 2.35% 1,000.00 723.10 10.15
ENERGY FUND
Investor Class 1.35% 1,000.00 1,183.40 7.39
Advisor Class 1.84% 1,000.00 1,180.70 10.06
A-Class 1.57% 1,000.00 1,078.20 8.18
C-Class 2.35% 1,000.00 1,177.60 12.83
ENERGY SERVICES FUND
Investor Class 1.35% 1,000.00 1,186.30 7.40
Advisor Class 1.85% 1,000.00 1,183.70 10.13
A-Class 1.62% 1,000.00 1,082.00 8.46
C-Class 2.35% 1,000.00 1,180.90 12.85
FINANCIAL SERVICES FUND
Investor Class 1.35% 1,000.00 1,000.90 6.77
Advisor Class 1.83% 1,000.00 997.20 9.16
A-Class 1.60% 1,000.00 1,011.20 8.07
C-Class 2.35% 1,000.00 994.50 11.75
4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- --------------------------------------------------------------------------------------------------------
HEALTH CARE FUND
Investor Class 1.35% $1,000.00 $ 964.00 $ 6.65
Advisor Class 1.85% 1,000.00 962.00 9.10
A-Class 1.70% 1,000.00 1,000.90 8.53
C-Class 2.35% 1,000.00 960.40 11.55
INTERNET FUND
Investor Class 1.37% 1,000.00 924.30 6.61
Advisor Class 1.67% 1,000.00 922.20 8.05
A-Class 1.70% 1,000.00 1,048.90 8.73
C-Class 2.38% 1,000.00 920.00 11.46
LEISURE FUND
Investor Class 1.34% 1,000.00 961.00 6.59
Advisor Class 1.85% 1,000.00 958.50 9.08
A-Class 1.74% 1,000.00 1,042.30 8.91
C-Class 2.35% 1,000.00 956.20 11.52
PRECIOUS METALS FUND
Investor Class 1.25% 1,000.00 929.60 6.05
Advisor Class 1.74% 1,000.00 927.80 8.41
A-Class 1.35% 1,000.00 1,099.80 7.11
C-Class 2.25% 1,000.00 924.90 10.86
REAL ESTATE FUND
A-Class 1.61% 1,000.00 1,001.90 8.08
C-Class 2.35% 1,000.00 999.20 11.78
H-Class 1.61% 1,000.00 1,002.30 8.08
RETAILING FUND
Investor Class 1.35% 1,000.00 927.60 6.52
Advisor Class 1.85% 1,000.00 925.20 8.93
A-Class 1.75% 1,000.00 1,018.20 8.85
C-Class 2.35% 1,000.00 922.60 11.33
TECHNOLOGY FUND
Investor Class 1.35% 1,000.00 866.70 6.32
Advisor Class 1.85% 1,000.00 865.20 8.65
A-Class 1.65% 1,000.00 1,032.20 8.41
C-Class 2.35% 1,000.00 864.00 10.98
TELECOMMUNICATIONS FUND
Investor Class 1.34% 1,000.00 930.20 6.48
Advisor Class 1.88% 1,000.00 928.30 9.09
A-Class 1.18% 1,000.00 1,032.50 6.01
C-Class 2.36% 1,000.00 925.60 11.39
TRANSPORTATION FUND
Investor Class 1.36% 1,000.00 1,083.90 7.10
Advisor Class 1.86% 1,000.00 1,079.40 9.70
A-Class 1.61% 1,000.00 1,038.40 8.23
C-Class 2.35% 1,000.00 1,078.10 12.24
UTILITIES FUND
Investor Class 1.36% 1,000.00 1,037.40 6.95
Advisor Class 1.86% 1,000.00 1,034.80 9.49
A-Class 1.62% 1,000.00 1,006.80 8.15
C-Class 2.35% 1,000.00 1,031.90 11.97
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- --------------------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 1.36% $1,000.00 $1,043.01 $ 6.99
Advisor Class 1.86% 1,000.00 1,040.44 9.56
A-Class 1.63% 1,000.00 1,041.62 8.38
C-Class 2.35% 1,000.00 1,037.92 12.08
BASIC MATERIALS FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.61% 1,000.00 1,041.73 8.27
C-Class 2.35% 1,000.00 1,037.92 12.08
BIOTECHNOLOGY FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.58% 1,000.00 1,041.88 8.12
C-Class 2.35% 1,000.00 1,037.92 12.08
CONSUMER PRODUCTS FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.60% 1,000.00 1,041.78 8.22
C-Class 2.35% 1,000.00 1,037.92 12.08
ELECTRONICS FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.73% 1,000.00 1,041.11 8.89
C-Class 2.35% 1,000.00 1,037.92 12.08
ENERGY FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.84% 1,000.00 1,040.54 9.46
A-Class 1.57% 1,000.00 1,041.93 8.07
C-Class 2.35% 1,000.00 1,037.92 12.08
ENERGY SERVICES FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.62% 1,000.00 1,041.67 8.33
C-Class 2.35% 1,000.00 1,037.92 12.08
FINANCIAL SERVICES FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.83% 1,000.00 1,040.60 9.40
A-Class 1.60% 1,000.00 1,041.78 8.22
C-Class 2.35% 1,000.00 1,037.92 12.08
HEALTH CARE FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.70% 1,000.00 1,041.26 8.74
C-Class 2.35% 1,000.00 1,037.92 12.08
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- --------------------------------------------------------------------------------------------------------
INTERNET FUND
Investor Class 1.37% $1,000.00 $1,042.96 $ 7.04
Advisor Class 1.67% 1,000.00 1,041.42 8.58
A-Class 1.70% 1,000.00 1,041.26 8.74
C-Class 2.38% 1,000.00 1,037.77 12.23
LEISURE FUND
Investor Class 1.34% 1,000.00 1,043.11 6.89
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.74% 1,000.00 1,041.06 8.94
C-Class 2.35% 1,000.00 1,037.92 12.08
PRECIOUS METALS FUND
Investor Class 1.25% 1,000.00 1,043.58 6.42
Advisor Class 1.74% 1,000.00 1,041.06 8.94
A-Class 1.35% 1,000.00 1,043.06 6.94
C-Class 2.25% 1,000.00 1,038.44 11.56
REAL ESTATE FUND
A-Class 1.61% 1,000.00 1,041.73 8.27
C-Class 2.35% 1,000.00 1,037.92 12.08
H-Class 1.61% 1,000.00 1,041.73 8.27
RETAILING FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.75% 1,000.00 1,041.01 8.99
C-Class 2.35% 1,000.00 1,037.92 12.08
TECHNOLOGY FUND
Investor Class 1.35% 1,000.00 1,043.06 6.94
Advisor Class 1.85% 1,000.00 1,040.49 9.51
A-Class 1.65% 1,000.00 1,041.52 8.48
C-Class 2.35% 1,000.00 1,037.92 12.08
TELECOMMUNICATIONS FUND
Investor Class 1.34% 1,000.00 1,043.11 6.89
Advisor Class 1.88% 1,000.00 1,040.34 9.66
A-Class 1.18% 1,000.00 1,043.94 6.06
C-Class 2.36% 1,000.00 1,037.87 12.13
TRANSPORTATION FUND
Investor Class 1.36% 1,000.00 1,043.01 6.99
Advisor Class 1.86% 1,000.00 1,040.44 9.56
A-Class 1.61% 1,000.00 1,041.73 8.27
C-Class 2.35% 1,000.00 1,037.92 12.08
UTILITIES FUND
Investor Class 1.36% 1,000.00 1,043.01 6.99
Advisor Class 1.86% 1,000.00 1,040.44 9.56
A-Class 1.62% 1,000.00 1,041.67 8.33
C-Class 2.35% 1,000.00 1,037.92 12.08
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF
DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365.
+ ANNUALIZED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7
- --------------------------------------------------------------------------------
This page intentionally left blank.
FUND PROFILES
- --------------------------------------------------------------------------------
BANKING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the banking sector, including commercial banks (and
their holding companies) and saving-and-loan institutions.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BANKING FUND
BANKS 65%
SAVINGS & LOANS 17%
DIVERSIFIED FINANCIALS 12%
INSURANCE 6%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 1, 1998
A-Class September 1, 2004
C-Class March 30, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Wells Fargo & Co. 5.1%
U.S. Bancorp 4.2%
Bank of America Corp. 3.8%
Freddie Mac 3.7%
Washington Mutual, Inc. 3.4%
Countrywide Financial Corp. 3.2%
SunTrust Banks, Inc. 3.0%
PNC Financial Services Group, Inc. 2.7%
KeyCorp 2.6%
M&T Bank Corp. 2.5%
- --------------------------------------------------------------------------------
Top Ten Total 34.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
BASIC MATERIALS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
mining, manufacture or sale of basic materials, such as lumber,
steel, iron, aluminum, concrete, chemicals and other basic building
and manufacturing materials.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BASIC MATERIALS FUND
CHEMICALS 41%
MINING 15%
FOREST PRODUCTS & PAPER 15%
PACKAGING & CONTAINERS 9%
IRON/STEEL 6%
OTHER 14%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 14, 1998
A-Class September 1, 2004
C-Class May 3, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
EI Du Pont de Nemours & Co. 4.6%
Dow Chemical Co. 3.6%
Phelps Dodge Corp. 2.9%
PPG Industries, Inc. 2.8%
Georgia-Pacific Corp. 2.7%
International Paper Co. 2.6%
Ecolab, Inc. 2.2%
United States Steel Corp. 2.1%
Alcoa, Inc. 2.1%
Sigma-Aldrich Corp. 2.1%
- --------------------------------------------------------------------------------
Top Ten Total 27.7%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the biotechnology industry, including companies involved
in research and development, genetic or biological engineering and
in the design, manufacture or sale of related biotechnology products
or services.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BIOTECHNOLOGY FUND
BIOTECHNOLOGY 63%
PHARMACEUTICALS 33%
HEALTHCARE-PRODUCTS 4%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 1, 1998
A-Class September 1, 2004
C-Class March 30, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Amgen, Inc. 10.0%
Genentech, Inc. 8.8%
Gilead Sciences, Inc. 5.7%
Biogen Idec, Inc. 5.5%
Genzyme Corp. 5.1%
Celgene Corp. 3.4%
Millennium Pharmaceuticals, Inc. 3.1%
Chiron Corp. 3.1%
Cephalon, Inc. 2.6%
ImClone Systems, Inc. 2.5%
- --------------------------------------------------------------------------------
Top Ten Total 49.8%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
CONSUMER PRODUCTS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
manufacturing finished goods and services both domestically and
internationally.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS FUND
FOOD 43%
COSMETICS/PERSONAL CARE 20%
BEVERAGES 20%
AGRICULTURE 10%
OTHER 7%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class July 6, 1998
Advisor Class August 17, 1998
A-Class September 1, 2004
C-Class July 24, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Procter & Gamble Co. 6.4%
Altria Group, Inc. 6.0%
PepsiCo, Inc. 5.5%
Coca-Cola Co. 5.0%
Gillette Co. 4.2%
Anheuser-Busch Cos., Inc. 3.4%
Kellogg Co. 3.3%
Sara Lee Corp. 3.3%
General Mills, Inc. 3.1%
Sysco Corp. 3.0%
- --------------------------------------------------------------------------------
Top Ten Total 43.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ELECTRONICS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the electronics sector, including semiconductor
manufacturers and distributors, and makers and vendors of other
electronic components and devices.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ELECTRONICS FUND
SEMICONDUCTORS 96%
ELECTRONICS 2%
OTHER 2%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 2, 1998
A-Class September 1, 2004
C-Class March 26, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Intel Corp. 10.2%
Applied Materials, Inc. 5.2%
Texas Instruments, Inc. 5.0%
Maxim Integrated Products, Inc. 3.3%
Micron Technology, Inc. 3.0%
KLA-Tencor Corp. 3.0%
Analog Devices, Inc. 2.9%
Xilinx, Inc. 2.8%
Lam Research Corp. 2.6%
National Semiconductor Corp. 2.5%
- --------------------------------------------------------------------------------
Top Ten Total 40.5%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
ENERGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the
energy field, including the exploration, production and development
of oil, gas, coal and alternative sources of energy.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ENERGY FUND
OIL & GAS 81%
OIL & GAS SERVICES 13%
PIPELINES 3%
OTHER 3%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 21, 1998
Advisor Class May 5, 1998
A-Class September 1, 2004
C-Class April 19, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 7.9%
BP PLC - SP ADR 6.1%
ChevronTexaco Corp. 4.8%
Total SA - SP ADR 4.6%
Royal Dutch Petroleum Co. 3.9%
ConocoPhillips 3.3%
Shell Transport & Trading Co. PLC - SP ADR 2.8%
Repsol YPF SA - SP ADR 2.5%
Schlumberger Ltd. 2.1%
Anadarko Petroleum Corp. 2.1%
- --------------------------------------------------------------------------------
Top Ten Total 40.1%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the energy services field, including those that provide
services and equipment in the areas of oil, coal and gas exploration
and production.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ENERGY SERVICES FUND
OIL & GAS SERVICES 64%
OIL & GAS 34%
TRANSPORTATION 2%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 2, 1998
A-Class September 1, 2004
C-Class March 30, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Schlumberger Ltd. 8.4%
Transocean, Inc. 5.3%
Baker Hughes, Inc. 5.0%
Nabors Industries Ltd. 4.9%
BJ Services Co. 4.5%
Halliburton Co. 4.4%
Weatherford International Ltd. 3.8%
Pride International, Inc. 3.6%
Tidewater, Inc. 3.2%
Cal Dive International, Inc. 3.0%
- --------------------------------------------------------------------------------
Top Ten Total 46.1%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
FINANCIAL SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the
financial services sector, including commercial banks, savings and
loans institutions, insurance companies, brokerage companies and
real-estate and leasing companies.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
FINANCIAL SERVICES FUND
INSURANCE 28%
BANKS 23%
DIVERSIFIED FINANCIALS 20%
REAL ESTATE 15%
SAVINGS & LOANS 12%
OTHER 2%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 2, 1998
Advisor Class April 6, 1998
A-Class September 1, 2004
C-Class April 19, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Citigroup, Inc. 3.3%
J.P. Morgan Chase & Co. 2.5%
Wachovia Corp. 2.4%
MetLife, Inc. 2.1%
Washington Mutual, Inc. 2.1%
Countrywide Financial Corp. 2.1%
Capital One Financial Corp. 1.9%
PNC Financial Services Group, Inc. 1.8%
Chubb Corp. 1.8%
KeyCorp 1.8%
- --------------------------------------------------------------------------------
Top Ten Total 21.8%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
HEALTH CARE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the health care industry.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
HEALTH CARE FUND
PHARMACEUTICALS 41%
HEALTHCARE-PRODUCTS 28%
HEALTHCARE-SERVICES 14%
BIOTECHNOLOGY 11%
OTHER 6%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 17, 1998
Advisor Class May 11, 1998
A-Class September 1, 2004
C-Class March 30, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Pfizer, Inc. 8.0%
Johnson & Johnson, Inc. 5.7%
Abbott Laboratories 3.7%
Eli Lilly & Co. 3.2%
Merck & Co., Inc. 3.1%
Bristol-Myers Squibb Co. 3.0%
Genentech, Inc. 2.9%
UnitedHealth Group, Inc. 2.8%
Wyeth 2.7%
Amgen, Inc. 2.5%
- --------------------------------------------------------------------------------
Top Ten Total 37.6%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
INTERNET FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that provide
products or services designed for or related to the Internet
("Internet Companies").
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
INTERNET FUND
INTERNET 51%
TELECOMMUNICATIONS 24%
COMPUTERS 8%
SOFTWARE 7%
MEDIA 7%
OTHER 3%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 6, 2000
Advisor Class April 6, 2000
A-Class September 1, 2004
C-Class April l9, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 10.0%
eBay, Inc. 8.1%
Qualcomm, Inc. 6.8%
Time Warner, Inc. 6.6%
Yahoo!, Inc. 6.2%
Research In Motion Ltd. 4.9%
Amazon.com, Inc. 4.3%
Intuit, Inc. 4.0%
Symantec Corp. 3.9%
Qwest Communications International, Inc. 3.2%
- --------------------------------------------------------------------------------
Top Ten Total 58.0%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LEISURE FUND
OBJECTIVE: Seeks capital appreciation by investing in the leisure and
entertainment businesses, including hotels and resorts, casinos,
radio and television broadcasting and advertising, motion picture
production, toys and sporting goods manufacturers, musical
recordings and instruments, alcohol and tobacco, and publishing.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
LEISURE FUND
RETAIL 33%
MEDIA 20%
LODGING 13%
LEISURE TIME 10%
ENTERTAINMENT 8%
TOYS/GAMES/HOBBIES 7%
SOFTWARE 6%
OTHER 3%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class June 3, 1998
A-Class September 1, 2004
C-Class May 3, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Time Warner, Inc. 6.4%
Walt Disney Co. 5.3%
McDonald's Corp. 4.8%
Viacom, Inc. - Class B 3.9%
Starbucks Corp. 3.7%
International Game Technology, Inc. 3.4%
Marriott International, Inc. - Class A 3.2%
Mattel, Inc. 2.9%
Electronic Arts, Inc. 2.8%
Carnival Corp. 2.8%
- --------------------------------------------------------------------------------
Top Ten Total 39.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
PRECIOUS METALS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the precious metals industry.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
PRECIOUS METALS FUND
GOLD MINING 67%
METAL-DIVERSIFIED 13%
SILVER MINING 13%
OTHER 7%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class December 1, 1993
Advisor Class August 1, 2003
A-Class September 1, 2004
C-Class April 27, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Newmont Mining Corp. 13.3%
Freeport-McMoRan Copper & Gold, Inc. -
Class B 10.1%
Barrick Gold Corp. 5.7%
AngloGold Ashanti Ltd. - SP ADR 5.6%
Placer Dome, Inc. 5.2%
Pan American Silver Corp. 4.4%
Coeur d'Alene Mines Corp. 4.3%
Gold Fields Ltd. - SP ADR 4.3%
Goldcorp, Inc. 4.3%
Harmony Gold Mining Co. Ltd. - SP ADR 4.2%
- --------------------------------------------------------------------------------
Top Ten Total 61.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
REAL ESTATE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the real estate industry including real estate
investment trusts ("REITs").
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
REAL ESTATE FUND
REITS-APARTMENTS 17%
REITS-OFFICE PROPERTY 16%
REITS-SHOPPING CENTERS 15%
REITS-DIVERSIFIED 15%
REITS-REGIONAL MALLS 13%
REITS-WAREHOUSE/INDUSTRY 6%
REITS-HEALTH CARE 5%
OTHER 13%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Equity Office Properties Trust 2.3%
Simon Property Group, Inc. 2.3%
Equity Residential 2.2%
Rouse Co. 2.1%
Vornado Realty Trust 2.1%
General Growth Properties, Inc. 1.9%
KIMCO Realty Co. 1.8%
Archstone-Smith Trust 1.8%
Plum Creek Timber (REIT) Co., Inc. 1.8%
Boston Properties, Inc. 1.8%
- --------------------------------------------------------------------------------
Top Ten Total 20.1%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
RETAILING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
merchandising finished goods and services, including department
stores, restaurant franchises, mail-order operations and other
companies involved in selling products to consumers.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
RETAILING FUND
APPAREL/SHOE 19%
DISCOUNT 17%
INTERNET 10%
BUILDING PRODUCTS 10%
OFFICE SUPPLIES 6%
DRUG STORE 5%
COMMERCIAL SERVICES 5%
AUTO PARTS 4%
REGIONAL DEPARTMENT STORE 3%
OTHER 21%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 21, 1998
A-Class September 1, 2004
C-Class May 9, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 7.6%
Home Depot, Inc. 5.7%
eBay, Inc. 4.7%
Lowe's Cos., Inc. 4.2%
Costco Wholesale Corp. 3.0%
Target Corp. 2.7%
Amazon.com, Inc. 2.7%
The Gap, Inc. 2.6%
InterActive Corp. 2.4%
Sherwin-Williams Co. 2.3%
- --------------------------------------------------------------------------------
Top Ten Total 37.9%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the technology sector, including computer software and
service companies, semiconductor manufacturers, networking and
telecommunications equipment manufacturers, and PC hardware and
peripherals companies.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TECHNOLOGY FUND
SOFTWARE 25%
COMPUTERS 22%
SEMICONDUCTORS 19%
TELECOMMUNICATIONS 17%
INTERNET 6%
ELECTRONICS 5%
OTHER 6%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 14, 1998
Advisor Class April 29, 1998
A-Class September 1, 2004
C-Class April 18, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Microsoft Corp. 9.6%
Intel Corp. 5.4%
Cisco Systems, Inc. 5.0%
International Business Machines Corp. 4.2%
Oracle Corp. 4.0%
Hewlett-Packard Co. 3.5%
Dell, Inc. 2.9%
Qualcomm, Inc. 2.6%
Yahoo!, Inc. 2.2%
Texas Instruments, Inc. 2.0%
- --------------------------------------------------------------------------------
Top Ten Total 41.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
TELECOMMUNICATIONS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
development, manufacture or sale of communications services or
communications equipment.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TELECOMMUNICATIONS FUND
TELEPHONE-INTEGRATED 28%
CELLULAR TELECOMMUNICATIONS 20%
WIRELESS EQUIPMENT 18%
TELECOMMUNICATION EQUIPMENT 15%
NETWORKING PRODUCTS 10%
TELECOMMUNICATIONS EQUIPMENT FIBER OPTICS 5%
OTHER 4%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 1, 1998
A-Class September 1, 2004
C-Class April 18, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Vodafone Group PLC - SP ADR 7.9%
Cisco Systems, Inc. 6.0%
Verizon Communications, Inc. 5.1%
SBC Communications, Inc. 5.0%
Qualcomm, Inc. 4.4%
Nokia OYJ - SP ADR 4.1%
Telefonaktiebolaget LM Ericsson - SP ADR 4.0%
BellSouth Corp. 3.7%
AT&T Wireless Services, Inc. 3.7%
Motorola, Inc. 3.6%
- --------------------------------------------------------------------------------
Top Ten Total 47.5%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
providing transportation services or companies engaged in the
design, manufacture, distribution or sale of transportation
equipment.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TRANSPORTATION FUND
SERVICES 32%
RAIL 26%
TRUCK 19%
AIRLINES 14%
AIR FREIGHT 6%
MARINE 3%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 2, 1998
Advisor Class June 9, 1998
A-Class September 1, 2004
C-Class May 14, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
United Parcel Service, Inc. - Class B 12.2%
FedEx Corp. 7.7%
Burlington Northern Santa Fe Corp. 7.6%
Norfolk Southern Corp. 7.1%
Union Pacific Corp. 5.7%
Southwest Airlines Co. 4.2%
Ryder System, Inc. 4.2%
CSX Corp. 3.5%
CNF, Inc. 3.4%
Expeditors International Washington, Inc. 3.0%
- --------------------------------------------------------------------------------
Top Ten Total 58.6%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
UTILITIES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that operate
public utilities ("Utilities Companies").
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
UTILITIES FUND
ELECTRIC-INTEGRATED 75%
GAS 16%
PIPELINES 4%
INDEPENDENT POWER PRODUCER 3%
ELECTRIC-GENERATION 2%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 3, 2000
Advisor Class April 3, 2000
A-Class September 1, 2004
C-Class April 27, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
PG&E Corp. 3.7%
Consolidated Edison, Inc. 3.4%
Sempra Energy 3.2%
DTE Energy Co. 3.1%
KeySpan Corp. 3.0%
Constellation Energy Group, Inc. 3.0%
Xcel Energy, Inc. 3.0%
Energy East Corp. 2.7%
Equitable Resources, Inc. 2.6%
Pepco Holdings, Inc. 2.6%
- --------------------------------------------------------------------------------
Top Ten Total 30.3%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17
- --------------------------------------------------------------------------------
This page intentionally left blank.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
BANKING FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.1%
Wells Fargo & Co. 24,188 $ 1,442,330
U.S. Bancorp+ 41,417 1,196,951
Bank of America Corp. 24,994 1,082,990
Freddie Mac 16,190 1,056,236
Washington Mutual, Inc. 24,650 963,322
Countrywide Financial Corp.+ 22,878 901,164
SunTrust Banks, Inc. 12,191 858,368
PNC Financial Services Group, Inc. 14,277 772,386
KeyCorp 23,501 742,632
M&T Bank Corp. 7,580 725,406
Comerica, Inc. 11,701 694,454
UnionBanCal Corp. 11,279 667,830
National Commerce Financial
Corp.+ 18,882 645,953
J.P. Morgan Chase & Co. 15,726 624,794
Huntington Bancshares, Inc. 24,900 620,259
MGIC Investment Corp.+ 9,291 618,316
Compass Bancshares, Inc. 13,504 591,745
Radian Group, Inc.+ 12,717 587,907
Zions Bancorporation 9,612 586,716
Hibernia Corp.--Class A 21,982 580,545
PMI Group, Inc. 13,903 564,184
Commerce Bancshares, Inc. 11,220 539,570
NewAlliance Bancshares, Inc. 36,282 520,647
Webster Financial Corp. 10,517 519,435
Astoria Financial Corp. 14,546 516,238
Wachovia Corp. 10,841 508,985
International Bancshares Corp. 13,629 500,866
Washington Federal, Inc. 19,700 495,455
Fannie Mae 7,776 492,998
Whitney Holding Corp. 11,543 484,806
Downey Financial Corp.+ 8,811 484,253
Community First Bankshares, Inc. 14,495 464,710
Bankunited Financial Corp. --
Class A* 15,846 461,911
Commercial Federal Corp. 16,655 449,352
Waypoint Financial Corp. 16,284 448,950
Anchor BanCorp Wisconsin, Inc.+ 16,704 432,634
Irwin Financial Corp. 16,686 430,832
Riggs National Corp.+ 18,998 421,756
Gold Banc Corp., Inc. 27,879 376,088
National Australia Bank Ltd. --
SP ADR 3,680 360,640
Barclays PLC -- SP ADR 9,000 348,210
Credit Suisse Group -- SP ADR* 10,850 346,549
Mitsubishi Tokyo Financial Group,
Inc. -- SP ADR+ 41,188 343,508
Kookmin Bank -- SP ADR* 10,287 327,538
Westcorp 5,624 239,132
R&G Financial Corp. -- Class B 5,610 216,826
National City Corp. 5,091 196,614
Fifth Third Bancorp 3,664 180,342
BB&T Corp.+ 4,334 172,016
Golden West Financial Corp. 875 97,081
SouthTrust Corp. 1,415 58,949
------------
TOTAL COMMON STOCKS
(Cost $26,703,411) 27,961,379
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 0.2%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 63,704 63,704
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $63,704) 63,704
------------
SECURITIES LENDING COLLATERAL 8.4%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 7) 2,386,271 2,386,271
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,386,271) 2,386,271
------------
TOTAL INVESTMENTS 106.7%
(Cost $29,153,386) $ 30,411,354
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (6.7)% $ (1,903,384)
============
NET ASSETS -- 100.0% $ 28,507,970
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.0%
EI Du Pont de Nemours & Co. 57,109 $ 2,444,265
Dow Chemical Co. 42,432 1,917,078
Phelps Dodge Corp.+ 16,750 1,541,502
PPG Industries, Inc. 24,191 1,482,424
Georgia-Pacific Corp.+ 39,530 1,421,103
International Paper Co.+ 34,253 1,384,164
Ecolab, Inc. 36,331 1,142,247
United States Steel Corp.+ 30,309 1,140,225
Alcoa, Inc. 33,694 1,131,781
Sigma-Aldrich Corp. 18,980 1,100,840
Pactiv Corp.* 44,359 1,031,347
Sealed Air Corp.*+ 22,149 1,026,606
Engelhard Corp. 36,186 1,025,873
Rohm & Haas Co.+ 22,577 970,134
Massey Energy Co.+ 32,362 936,233
Owens-Illinois, Inc.* 57,733 923,728
Potlatch Corp.+ 19,684 921,408
Newmont Mining Corp.+ 19,264 877,090
OM Group, Inc.*+ 21,248 776,827
Louisiana-Pacific Corp.+ 29,856 774,763
Consol Energy, Inc.+ 21,266 741,971
Eastman Chemical Co.+ 15,243 724,805
Monsanto Co. 19,724 718,348
Lafarge North America, Inc.+ 14,670 687,876
Weyerhaeuser Co. 10,231 680,157
Praxair, Inc. 15,368 656,828
Lubrizol Corp.+ 18,680 646,328
Air Products & Chemicals, Inc. 11,550 628,089
RPM International, Inc. 35,485 626,310
Southern Peru Copper Corp. 11,773 608,193
Vulcan Materials Co.+ 11,719 597,083
International Steel Group, Inc.*+ 17,170 578,629
Glamis Gold Ltd.*+ 30,653 574,131
Agrium, Inc. 32,100 570,096
Georgia Gulf Corp. 12,121 540,475
Nucor Corp.+ 5,854 534,880
Alcan, Inc.+ 11,181 534,452
Agnico-Eagle Mines Ltd.+ 36,471 520,806
Rio Tinto PLC -- SP ADR+ 4,670 507,395
Sonoco Products Co.+ 18,675 493,767
Bemis Co. 18,570 493,591
Eagle Materials, Inc. 6,544 466,587
Valspar Corp. 9,681 451,909
Inco Ltd.*+ 11,506 449,309
Headwaters, Inc.*+ 13,958 430,744
Worthington Industries, Inc. 19,620 418,887
Airgas, Inc. 17,104 411,693
Lyondell Chemical Co.+ 17,386 390,490
Crompton Corp. 40,716 386,395
Albemarle Corp. 10,955 384,411
IMC Global, Inc.*+ 21,980 382,232
AptarGroup, Inc. 8,645 380,121
Packaging Corporation of America 15,440 377,817
Minerals Technologies, Inc. 6,111 359,693
Texas Industries, Inc.+ 6,810 350,306
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 8,540 345,870
Cabot Corp. 8,180 315,503
MeadWestvaco Corp. 9,651 307,867
Sensient Technologies Corp.+ 14,157 306,357
Millennium Chemicals, Inc.* 13,776 292,189
Quanex Corp. 5,470 280,502
W.R. Grace & Co.* 29,550 279,247
Wausau-Mosinee Paper Corp. 16,516 274,991
Peabody Energy Corp. 4,614 274,533
Longview Fibre Co. 17,780 271,145
MacDermid, Inc. 9,106 263,710
H.B. Fuller Co. 9,613 263,396
Ferro Corp. 11,938 260,368
Florida Rock Industries, Inc. 5,261 257,736
PolyOne Corp.* 33,428 251,379
A. Schulman, Inc. 11,305 249,162
Allegheny Technologies, Inc. 13,426 245,024
Arch Chemicals, Inc. 8,571 244,702
International Flavors & Fragrances,
Inc. 6,294 240,431
Smurfit-Stone Container Corp.*+ 12,410 240,382
Caraustar Industries, Inc.* 13,523 226,781
Cemex SA de CV -- SP ADR 7,925 223,009
Rock-Tenn Co. -- Class A 13,885 218,550
Schweitzer-Mauduit International,
Inc. 6,670 216,108
Cambrex Corp. 9,803 215,176
Deltic Timber Corp.+ 5,403 214,985
RTI International Metals, Inc.* 11,002 213,109
Glatfelter 16,876 209,094
See Notes to Financial Statements
20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Ryerson Tull, Inc. 12,041 $ 206,744
Chesapeake Corp. 8,184 196,580
Buckeye Technologies, Inc.* 17,173 191,479
Brush Engineered Materials, Inc.* 9,061 187,653
Steel Technologies, Inc. 7,310 187,260
Myers Industries, Inc. 15,443 169,101
Wellman, Inc. 18,856 159,899
Material Sciences Corp.* 11,083 149,510
Pope & Talbot, Inc. 8,451 148,738
Omnova Solutions, Inc.* 24,526 147,892
Ball Corp. 3,738 139,913
Quaker Chemical Corp. 5,596 135,143
Penford Corp. 6,802 118,423
Imco Recycling, Inc.*+ 10,296 117,374
A.M. Castle & Co.* 11,490 116,624
Commonwealth Industries, Inc.* 11,963 111,734
Temple-Inland, Inc. 1,490 100,054
------------
TOTAL COMMON STOCKS
(Cost $46,271,030) 52,059,869
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.2%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 654,398 654,398
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $654,398) 654,398
------------
SECURITIES LENDING COLLATERAL 14.3%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 7,583,211 7,583,211
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,583,211) 7,583,211
------------
TOTAL INVESTMENTS 113.5%
(Cost $54,508,639) $ 60,297,478
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (13.5)% $ (7,177,149)
============
NET ASSETS -- 100.0% $ 53,120,329
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 21
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.0%
Amgen, Inc.*+ 245,618 $ 13,921,628
Genentech, Inc.*+ 234,422 12,288,401
Gilead Sciences, Inc.*+ 211,688 7,912,897
Biogen Idec, Inc.*+ 124,913 7,640,928
Genzyme Corp.*+ 131,025 7,129,070
Celgene Corp.*+ 81,540 4,748,074
Millennium Pharmaceuticals, Inc.*+ 314,496 4,311,740
Chiron Corp.*+ 96,745 4,276,129
Cephalon, Inc.*+ 74,992 3,592,117
ImClone Systems, Inc.*+ 65,779 3,476,420
Charles River Laboratories International,
Inc.*+ 63,128 2,891,262
Invitrogen Corp.*+ 49,623 2,728,769
Medimmune, Inc.*+ 102,200 2,422,140
Gen-Probe, Inc.*+ 60,289 2,403,722
Pharmion Corp.*+ 44,873 2,319,755
Onyx Pharmaceuticals, Inc.*+ 50,581 2,175,489
Connetics Corp.*+ 77,140 2,084,323
Affymetrix, Inc.*+ 67,234 2,064,756
OSI Pharmaceuticals, Inc.*+ 32,949 2,025,046
Amylin Pharmaceuticals, Inc.*+ 98,117 2,013,361
Abgenix, Inc.*+ 187,412 1,847,882
Neurocrine Biosciences, Inc.* 39,008 1,839,617
Idexx Laboratories, Inc.* 36,117 1,832,577
Techne Corp.*+ 46,999 1,794,422
QLT, Inc.*+ 106,604 1,774,957
Human Genome Sciences, Inc.*+ 162,417 1,771,969
Telik, Inc.* 76,422 1,704,211
Digene Corp.* 64,837 1,683,169
Angiotech Pharmaceuticals, Inc.*+ 77,800 1,577,006
United Therapeutics Corp.*+ 44,391 1,550,578
Vicuron Pharmaceuticals, Inc.* 101,381 1,488,273
Incyte Corp.*+ 149,427 1,438,982
NPS Pharmaceuticals, Inc.*+ 64,595 1,406,879
Vertex Pharmaceuticals, Inc.*+ 131,033 1,375,847
Transkaryotic Therapies, Inc.* 73,607 1,305,052
Applera Corp. -- Celera Genomics
Group* 111,609 1,304,709
Serologicals Corp.*+ 54,210 1,264,719
Alkermes, Inc.*+ 109,442 1,262,961
Tanox, Inc.* 73,427 1,238,714
Medarex, Inc.*+ 160,139 1,181,826
Myriad Genetics, Inc.* 64,585 1,104,404
Ligand Pharmaceuticals, Inc. --
Class B* 100,296 1,004,966
Regeneron Pharmaceuticals, Inc.* 109,359 949,236
Alexion Pharmaceuticals, Inc.* 52,691 948,438
deCODE genetics, Inc.* 122,500 922,425
CV Therapeutics, Inc.*+ 73,418 917,725
Cubist Pharmaceuticals, Inc.* 92,014 909,098
Dendreon Corp.* 102,364 860,881
Ariad Pharmaceuticals, Inc.* 128,537 859,913
Cell Genesys, Inc.* 90,326 810,224
Protein Design Labs, Inc.*+ 36,449 713,671
InterMune, Inc.* 51,392 605,912
Oscient Pharmaceuticals Corp.*+ 155,662 552,600
Martek Biosciences Corp.*+ 10,528 512,082
ICOS Corp.* 18,738 452,335
Cell Therapeutics, Inc.*+ 65,900 452,074
Encysive Pharmaceuticals, Inc.* 39,862 359,954
Keryx Biopharmaceuticals, Inc.* 30,300 339,057
ILEX Oncology, Inc.* 8,000 201,360
Enzon Pharmaceuticals, Inc.* 18 287
-------------
TOTAL COMMON STOCKS
(Cost $90,225,176) 136,547,019
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 0.2%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 317,395 317,395
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $317,395) 317,395
-------------
SECURITIES LENDING COLLATERAL 38.0%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S. Bank
(Note 7) 52,868,168 52,868,168
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $52,868,168) $ 52,868,168
-------------
TOTAL INVESTMENTS 136.2%
(Cost $143,410,739) $ 189,732,582
=============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (36.2)% $ (50,425,546)
=============
NET ASSETS -- 100.0% $ 139,307,036
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.5%
Procter & Gamble Co. 26,382 $ 1,427,794
Altria Group, Inc. 28,600 1,345,344
PepsiCo, Inc. 25,607 1,245,781
Coca-Cola Co. 27,910 1,117,795
Gillette Co. 22,521 940,027
Anheuser-Busch Cos., Inc. 15,311 764,784
Kellogg Co. 17,189 733,283
Sara Lee Corp. 32,002 731,566
General Mills, Inc. 15,330 688,317
Sysco Corp. 22,758 680,919
Kraft Foods, Inc. -- Class A+ 20,193 640,522
Kimberly-Clark Corp. 9,690 625,877
H.J. Heinz Co. 17,240 620,985
Colgate-Palmolive Co. 13,564 612,822
Estee Lauder Cos., Inc. -- Class A 13,196 551,593
Pepsi Bottling Group, Inc.+ 19,350 525,352
Tyson Foods, Inc. -- Class A+ 29,090 466,022
Whole Foods Market, Inc.+ 5,250 450,397
Supervalu, Inc.+ 15,740 433,637
Hormel Foods Corp.+ 15,780 422,588
Dean Foods Co.*+ 13,920 417,878
7-Eleven, Inc.* 18,802 375,664
Adolph Coors Co. -- Class B 5,310 360,655
Del Monte Foods Co.* 33,965 356,293
J.M. Smucker Co. 7,830 347,730
UST, Inc. 7,730 311,210
Pilgrim's Pride Corp.+ 11,280 305,462
Church & Dwight Co., Inc. 10,580 296,875
Corn Products International, Inc. 6,427 296,285
Loews Corp. -- Carolina Group 11,540 281,230
Ralcorp Holdings, Inc.* 6,760 244,036
WM Wrigley Jr Co.+ 3,800 240,578
Coca-Cola Enterprises, Inc. 12,670 239,463
Performance Food Group Co.* 9,910 234,867
Rayovac Corp.* 8,270 217,914
Ruddick Corp. 10,792 211,955
ConAgra Foods, Inc.+ 7,954 204,497
Hershey Foods Corp.+ 4,160 194,314
Energizer Holdings, Inc.*+ 4,160 191,776
Archer-Daniels-Midland Co. 10,260 174,215
Clorox Co. 3,052 162,672
Kroger Co.*+ 10,247 159,033
Campbell Soup Co. 5,901 155,137
Sanderson Farms, Inc. 4,540 151,863
Avon Products, Inc.+ 3,268 142,746
Alberto-Culver Co. -- Class B 3,190 138,701
Natures Sunshine Products, Inc. 7,604 115,353
Albertson's, Inc.+ 4,780 114,385
Smithfield Foods, Inc.* 4,210 105,250
NBTY, Inc.* 4,192 90,380
Safeway, Inc.*+ 4,639 89,579
Reynolds American, Inc. 1,120 76,205
Brown-Forman Corp. -- Class B 1,330 60,914
McCormick & Co., Inc. 740 25,412
Constellation Brands, Inc. --
Class A* 630 23,978
------------
TOTAL COMMON STOCKS
(Cost $20,925,258) 22,139,910
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 0.7%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 159,041 159,041
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $159,041) 159,041
------------
SECURITIES LENDING COLLATERAL 7.8%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 1,748,026 1,748,026
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,748,026) 1,748,026
------------
TOTAL INVESTMENTS 107.0%
(Cost $22,832,325) $ 24,046,977
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (7.0)% $ (1,580,612)
============
NET ASSETS -- 100.0% $ 22,466,365
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
ELECTRONICS FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.2%
Intel Corp. 162,919 $ 3,268,155
Applied Materials, Inc.* 99,909 1,647,499
Texas Instruments, Inc. 74,848 1,592,765
Maxim Integrated Products, Inc.+ 24,994 1,056,996
Micron Technology, Inc.*+ 80,743 971,338
KLA-Tencor Corp.*+ 23,122 959,101
Analog Devices, Inc.+ 23,757 921,297
Xilinx, Inc.+ 32,886 887,922
Lam Research Corp.*+ 37,650 823,782
National Semiconductor Corp.*+ 51,490 797,580
Novellus Systems, Inc.* 28,589 760,182
Linear Technology Corp.+ 20,967 759,844
Altera Corp.*+ 36,595 716,164
Broadcom Corp. -- Class A*+ 26,018 710,031
Advanced Micro Devices, Inc.*+ 53,514 695,682
Microchip Technology, Inc.+ 25,134 674,597
Semtech Corp.*+ 30,448 583,688
Pericom Semiconductor Corp.* 53,646 518,220
Cree, Inc.*+ 15,988 488,114
Teradyne, Inc.*+ 34,750 465,650
Intersil Corp. -- Class A+ 28,654 456,458
Skyworks Solutions, Inc.*+ 46,767 444,287
MEMC Electronic Materials, Inc.*+ 51,720 438,586
International Rectifier Corp.* 12,515 429,265
Fairchild Semiconductor International,
Inc.* 28,390 402,286
Rambus, Inc.* 24,670 387,072
Micrel, Inc.* 36,870 383,817
PMC -- Sierra, Inc.*+ 41,910 369,227
Varian Semiconductor Equipment
Associates, Inc.* 11,650 359,985
Cymer, Inc.*+ 12,490 357,963
ATMI, Inc.* 16,892 345,948
Integrated Circuit Systems, Inc.*+ 15,115 324,973
Axcelis Technologies, Inc.*+ 38,890 322,009
RF Micro Devices, Inc.* 50,046 317,292
Nvidia Corp.*+ 21,740 315,665
Atmel Corp.*+ 86,577 313,409
Silicon Laboratories, Inc.*+ 9,417 311,609
LSI Logic Corp.*+ 71,652 308,820
Cabot Microelectronics Corp.*+ 8,318 301,528
Taiwan Semiconductor Manufacturing
Co. Ltd. -- SP ADR+ 42,173 301,115
Cypress Semiconductor Corp.*+ 33,815 298,925
Helix Technology Corp. 21,210 288,350
Integrated Device Technology, Inc.*+ 27,587 262,904
Cohu, Inc. 16,790 248,156
Applied Micro Circuits Corp.*+ 76,784 240,334
Brooks Automation, Inc.* 16,260 230,079
Power Integrations, Inc.*+ 10,277 209,959
FEI Co.* 10,590 209,258
Triquint Semiconductor, Inc.* 52,977 206,610
Microsemi Corp.* 14,248 200,897
Actel Corp.* 12,862 195,502
Amkor Technology, Inc.* 52,710 192,392
Exar Corp.*+ 13,096 185,439
Lattice Semiconductor Corp.* 37,163 182,470
Photronics, Inc.*+ 10,446 173,613
LTX Corp.* 29,688 160,612
Advanced Energy Industries, Inc.* 16,900 157,001
Kulicke & Soffa Industries, Inc.* 27,763 156,861
Conexant Systems, Inc.*+ 92,630 149,134
Ultratech, Inc.* 8,260 129,434
Dupont Photomasks, Inc.* 7,010 119,450
Kopin Corp.* 25,550 103,989
STMicroelectronics/NV 5,990 103,507
Rudolph Technologies, Inc.* 5,980 100,105
Standard Microsystems Corp.* 5,122 89,686
Credence Systems Corp.*+ 10,610 76,392
ESS Technologies, Inc.* 11,000 75,350
Infineon Technologies AG --
SP ADR* 4,263 43,568
Alliance Semiconductor Corp.* 9,087 31,441
United Microelectronics Corp. --
SP ADR*+ 8,801 29,747
Three-Five Systems, Inc.* 9,720 26,633
------------
TOTAL COMMON STOCKS
(Cost $22,495,753) 31,367,719
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.4%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 438,210 438,210
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $438,210) 438,210
------------
SECURITIES LENDING COLLATERAL 21.9%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 7,009,431 7,009,431
------------
See Notes to Financial Statements.
24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
ELECTRONICS FUND
MARKET
VALUE
(NOTE 1)
- -------------------------------------------------------------------------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,009,431) $ 7,009,431
------------
TOTAL INVESTMENTS 121.5%
(Cost $29,943,394) $ 38,815,360
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (21.5)% $ (6,866,823)
============
NET ASSETS -- 100.0% $ 31,948,537
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
ENERGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.0%
Exxon Mobil Corp. 252,884 $ 12,221,884
BP PLC -- SP ADR 162,350 9,339,995
ChevronTexaco Corp.+ 139,408 7,477,845
Total SA -- SP ADR+ 69,300 7,080,381
Royal Dutch Petroleum Co. 116,850 6,029,460
ConocoPhillips 61,004 5,054,181
Shell Transport & Trading Co.
PLC -- SP ADR 97,500 4,339,725
Repsol YPF SA -- SP ADR 174,001 3,814,102
Schlumberger Ltd. 49,000 3,298,190
Anadarko Petroleum Corp. 49,010 3,252,304
Devon Energy Corp. 41,513 2,947,838
Weatherford International Ltd.*+ 55,665 2,840,028
Occidental Petroleum Corp. 50,135 2,804,051
Kerr-McGee Corp. 48,910 2,800,097
Burlington Resources, Inc.+ 67,293 2,745,554
Apache Corp. 52,658 2,638,692
Transocean, Inc.*+ 71,250 2,549,325
Rowan Cos., Inc.*+ 90,395 2,386,428
Marathon Oil Corp. 57,049 2,354,983
Valero Energy Corp.+ 29,155 2,338,523
Sunoco, Inc.+ 31,517 2,331,628
Murphy Oil Corp. 26,164 2,270,250
Kinder Morgan, Inc. 36,100 2,267,802
Unocal Corp.+ 48,410 2,081,630
Offshore Logistics, Inc.* 57,866 1,991,748
Amerada Hess Corp. 20,963 1,865,707
Dril-Quip, Inc.* 82,293 1,835,134
Premcor, Inc.* 47,600 1,832,600
Baker Hughes, Inc.+ 41,081 1,796,061
Forest Oil Corp.*+ 59,400 1,789,128
XTO Energy, Inc.+ 53,947 1,752,199
Nabors Industries Ltd.*+ 36,875 1,746,031
EOG Resources, Inc.+ 24,270 1,598,179
Vintage Petroleum, Inc. 78,500 1,575,495
Frontier Oil Corp. 62,992 1,487,241
Cal Dive International, Inc.*+ 41,050 1,462,201
El Paso Corp.+ 154,282 1,417,852
Diamond Offshore Drilling+ 42,750 1,410,322
BJ Services Co.+ 26,815 1,405,374
Chesapeake Energy Corp.+ 85,885 1,359,560
Plains Exploration & Production
Co.*+ 55,300 1,319,458
Newfield Exploration Co.* 20,815 1,274,711
Hanover Compressor Co.*+ 90,928 1,222,982
Patterson-UTI Energy, Inc.+ 61,150 1,166,130
Pioneer Natural Resources Co.+ 33,789 1,165,042
Southwestern Energy Co.*+ 25,972 1,090,564
Unit Corp.*+ 30,880 1,083,270
Overseas Shipholding Group, Inc. 21,161 1,050,432
Ashland, Inc. 18,512 1,038,153
Noble Energy, Inc. 16,725 974,064
Williams Cos., Inc. 74,650 903,265
Smith International, Inc.*+ 14,325 869,957
Precision Drilling Corp.*+ 15,015 863,362
Stone Energy Corp.* 18,800 822,688
Cimarex Energy Co.* 22,121 772,908
Tetra Technologies, Inc.* 23,421 727,222
St. Mary Land & Exploration Co. 16,900 672,789
Maverick Tube Corp.*+ 21,425 660,104
Patina Oil & Gas Corp. 21,737 642,763
Swift Energy Co.* 25,760 617,210
Noble Corp.*+ 12,900 579,855
Helmerich & Payne, Inc. 20,000 573,800
Oceaneering International, Inc.*+ 15,321 564,426
National-Oilwell, Inc.* 17,150 563,549
Spinnaker Exploration Co.*+ 15,940 558,538
Veritas DGC, Inc.*+ 24,300 553,554
Halliburton Co. 14,625 492,716
CARBO Ceramics, Inc. 6,683 482,112
Grant Prideco, Inc.*+ 22,850 468,196
Remington Oil & Gas Corp.* 16,100 422,625
Input/Output, Inc.*+ 37,050 381,986
Cabot Oil & Gas Corp.+ 7,350 330,015
SAN Juan Basin Royalty TR 10,700 326,457
Lone Star Technologies, Inc.*+ 7,547 285,277
Atwood Oceanics, Inc.* 5,900 280,486
Pogo Producing Co. 5,471 259,599
Kinder Morgan Energy Partners-LP 4,700 220,148
Teekay Shipping Corp. 3,950 170,206
Tesoro Petroleum Corp.*+ 5,700 168,321
OMI Corp. 10,500 168,210
General Maritime Corp* 4,800 167,184
Frontline, Ltd. 3,500 165,165
PetroKazakhstan, Inc.-Class A 4,589 157,265
Western Gas Resources, Inc. 5,100 145,809
W-H Energy Services, Inc.* 5,750 119,313
Key Energy Services, Inc.* 500 5,525
-------------
TOTAL COMMON STOCKS
(Cost $128,225,566) 151,137,139
-------------
See Notes to Financial Statements.
26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
ENERGY FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 644,115 $ 644,115
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $644,115) 644,115
-------------
SECURITIES LENDING COLLATERAL 15.2%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 23,463,476 23,463,476
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $23,463,476) 23,463,476
-------------
TOTAL INVESTMENTS 113.6%
(Cost $152,333,157) $ 175,244,730
=============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (13.6)% $ (20,984,612)
=============
NET ASSETS -- 100.0% $ 154,260,118
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.2%
Schlumberger Ltd. 110,764 $ 7,455,525
Transocean, Inc.*+ 132,482 4,740,206
Baker Hughes, Inc.+ 102,469 4,479,945
Nabors Industries Ltd.*+ 92,062 4,359,136
BJ Services Co.+ 76,846 4,027,499
Halliburton Co. 117,135 3,946,278
Weatherford International Ltd.*+ 66,850 3,410,687
Pride International, Inc.*+ 163,603 3,237,703
Tidewater, Inc. 88,965 2,895,811
Cal Dive International, Inc.*+ 75,691 2,696,113
Smith International, Inc.*+ 43,186 2,622,686
Diamond Offshore Drilling+ 77,800 2,566,622
Helmerich & Payne, Inc. 87,488 2,510,031
FMC Technologies, Inc.* 70,840 2,366,056
Grant Prideco, Inc.*+ 114,289 2,341,782
National-Oilwell, Inc.* 70,697 2,323,103
Noble Corp.*+ 51,649 2,321,622
Cooper Cameron Corp.* 42,193 2,313,864
Patterson-UTI Energy, Inc. 107,440 2,048,881
Unit Corp.*+ 56,413 1,978,968
Atwood Oceanics, Inc.* 41,476 1,971,769
Rowan Cos., Inc.*+ 71,683 1,892,431
ENSCO International, Inc.+ 57,574 1,880,943
Offshore Logistics, Inc.* 50,452 1,736,558
Lone Star Technologies, Inc.*+ 45,407 1,716,385
Varco International, Inc.* 62,991 1,689,419
W-H Energy Services, Inc.* 79,215 1,643,711
Maverick Tube Corp.*+ 50,241 1,547,925
CARBO Ceramics, Inc. 19,668 1,418,849
Dril-Quip, Inc.* 63,100 1,407,130
Oceaneering International, Inc.*+ 29,709 1,094,480
Hydril* 22,805 979,475
Input/Output, Inc.*+ 81,100 836,141
Tetra Technologies, Inc.* 24,037 746,349
Precision Drilling Corp.*+ 11,750 675,625
Veritas DGC, Inc.*+ 27,000 615,060
Universal Compression Holdings,
Inc.* 13,250 451,427
Hanover Compressor Co.* 28,020 376,869
SEACOR Holdings, Inc.* 4,603 215,190
Core Laboratories/NV* 3,670 90,245
-------------
TOTAL COMMON STOCKS
(Cost $68,753,314) 87,628,499
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 686,015 $ 686,015
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $686,015) 686,015
-------------
SECURITIES LENDING COLLATERAL 19.7%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 17,615,930 17,615,930
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $17,615,930) 17,615,930
-------------
TOTAL INVESTMENTS 118.7%
(Cost $87,055,259) $ 105,930,444
=============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (18.7)% $ (16,723,915)
=============
NET ASSETS -- 100.0% $ 89,206,529
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.2%
Citigroup, Inc. 26,122 $ 1,152,503
J.P. Morgan Chase & Co. 21,637 859,638
Wachovia Corp.+ 17,877 839,325
MetLife, Inc. 18,693 722,484
Washington Mutual, Inc. 18,441 720,674
Countrywide Financial Corp.+ 18,122 713,826
Capital One Financial Corp.+ 8,912 658,597
PNC Financial Services Group, Inc. 11,830 640,003
Chubb Corp.+ 8,780 617,058
KeyCorp 19,523 616,927
XL Capital Ltd.+ 8,172 604,646
Loews Corp. 10,084 589,914
Vornado Realty Trust 9,360 586,685
Banknorth Group, Inc. 16,371 572,985
Principal Financial Group, Inc.+ 15,890 571,563
Radian Group, Inc.+ 11,890 549,675
Everest Re Group Ltd. 7,364 547,366
MGIC Investment Corp.+ 8,199 545,643
PMI Group, Inc.+ 13,329 540,891
Hudson City Bancorp, Inc. 15,071 538,638
SAFECO Corp.+ 11,777 537,620
Commerce Bancorp, Inc./NJ+ 9,702 535,550
New York Community Bancorp, Inc. 25,670 527,262
CNA Financial Corp.* 21,641 519,600
Markel Corp.* 1,684 519,346
United Dominion Realty Trust, Inc.+ 26,110 517,761
Independence Community Bank
Corp. 13,240 517,022
Camden Property Trust+ 11,130 514,206
CBL & Associates Properties, Inc.+ 8,370 510,151
Student Loan Corp. 3,594 509,450
HCC Insurance Holdings, Inc.+ 16,840 507,726
Shurgard Storage Centers, Inc. --
Class A 13,017 505,060
Astoria Financial Corp. 14,190 503,603
Friedman Billings Ramsey Group,
Inc. -- Class A+ 26,101 498,529
Nationwide Financial Services, Inc. 14,142 496,526
LandAmerica Financial Group, Inc. 10,889 495,450
Lexington Corporate Properties
Trust 22,743 493,751
Horace Mann Educators Corp. 27,767 488,144
Entertainment Properties Trust+ 12,896 487,469
Annaly Mortgage Mgt.+ 28,302 484,813
Flagstar Bancorp, Inc. 22,600 480,928
Greater Bay Bancorp+ 16,707 480,326
Susquehanna Bancshares, Inc. 19,220 472,812
Commercial Federal Corp.+ 17,411 469,749
Bank of New York Co., Inc. 15,350 447,760
Moody's Corp. 6,000 439,500
HSBC Holdings Plc+ 5,410 431,718
American Express Co. 8,040 413,738
Gold Banc Corp., Inc. 30,278 408,450
Kookmin Bank -- SP ADR* 12,655 402,935
First Republic Bank+ 8,416 387,136
Nuveen Investments, Inc. -- Class A 13,021 385,422
AMB Property Corp. 9,290 343,916
Transatlantic Holdings, Inc. 6,109 332,024
T. Rowe Price Group, Inc.+ 6,488 330,499
Mellon Financial Corp. 11,390 315,389
Fremont General Corp. 13,240 306,506
State Street Corp. 7,090 302,814
Bank of America Corp. 6,106 264,573
Eaton Vance Corp.+ 6,510 262,939
American International Group, Inc. 3,738 254,147
Simon Property Group, Inc.+ 4,390 235,436
NewAlliance Bancshares, Inc. 15,580 223,573
MBNA Corp. 7,745 195,174
Odyssey Re Holdings Corp.+ 8,614 191,059
Legg Mason, Inc.+ 3,430 182,716
Golden West Financial Corp. 1,522 168,866
Blackrock, Inc. 2,120 155,799
Franklin Resources, Inc. 2,490 138,842
SLM Corp. 3,000 133,800
Trizec Properties, Inc. 7,688 122,777
UBS AG 1,730 121,671
Providian Financial Corp.*+ 7,669 119,176
Host Marriott Corp.*+ 7,970 111,819
AmeriCredit Corp.* 4,864 101,560
Wells Fargo & Co. 1,449 86,404
Investors Financial Services Corp. 1,760 79,429
American Capital Strategies, Ltd. 2,270 71,142
First Marblehead Corp.* 1,398 64,867
Prudential Financial, Inc. 1,330 62,563
Capital Automotive REIT 1,394 43,590
W.R. Berkley Corp. 931 39,251
ProAssurance Corp.* 1,020 35,720
Piper Jaffray Cos., Inc.* 870 34,443
Fannie Mae 371 23,521
------------
TOTAL COMMON STOCKS
(Cost $32,208,290) 34,034,559
------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 18.3%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) $ 6,332,886 $ 6,332,886
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,332,886) 6,332,886
------------
TOTAL INVESTMENTS 116.5%
(Cost $38,541,176) $ 40,367,445
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (16.5)% $ (5,720,277)
============
NET ASSETS -- 100.0% $ 34,647,168
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
HEALTH CARE FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.1%
Pfizer, Inc. 136,433 $ 4,174,850
Johnson & Johnson, Inc.+ 52,849 2,976,984
Abbott Laboratories 45,890 1,943,900
Eli Lilly & Co. 27,453 1,648,553
Merck & Co., Inc. 49,138 1,621,554
Bristol-Myers Squibb Co.+ 65,218 1,543,710
Genentech, Inc.*+ 28,320 1,484,534
UnitedHealth Group, Inc. 19,938 1,470,228
Wyeth 36,967 1,382,566
Amgen, Inc.*+ 23,017 1,304,604
Guidant Corp.+ 19,163 1,265,525
Medtronic, Inc. 24,134 1,252,555
Boston Scientific Corp.*+ 28,940 1,149,786
Gilead Sciences, Inc.*+ 30,598 1,143,753
Biogen Idec, Inc.*+ 13,810 844,758
CIGNA Corp. 11,435 796,219
Baxter International, Inc. 23,506 755,953
Aetna, Inc. 7,470 746,477
Zimmer Holdings, Inc.* 9,260 731,910
Allergan, Inc.+ 9,800 710,990
St. Jude Medical, Inc.* 9,320 701,516
Genzyme Corp.*+ 12,610 686,110
Anthem, Inc.*+ 7,378 643,730
WellPoint Health Networks, Inc.* 5,992 629,699
Caremark Rx, Inc.*+ 18,403 590,184
Schering AG -- SP ADR 9,290 582,947
Becton, Dickinson & Co. 10,310 533,027
Forest Laboratories, Inc.* 11,816 531,484
IMS Health, Inc. 19,800 473,616
Quest Diagnostics, Inc.+ 5,270 464,919
Stryker Corp. 9,626 462,818
Varian Medical Systems, Inc.* 12,920 446,644
Celgene Corp.*+ 7,650 445,459
Patterson Cos., Inc.*+ 5,690 435,626
McKesson Corp.+ 16,892 433,280
Biomet, Inc.+ 9,240 433,171
HCA, Inc. 11,343 432,735
Millennium Pharmaceuticals, Inc.*+ 30,685 420,691
C.R. Bard, Inc. 7,300 413,399
DENTSPLY International, Inc. 7,760 403,054
Cardinal Health, Inc. 9,064 396,731
Sepracor, Inc.*+ 8,060 393,167
Express Scripts, Inc.*+ 5,990 391,387
Schering-Plough Corp.+ 19,584 373,271
Fisher Scientific International, Inc.*+ 6,380 372,145
Bausch & Lomb, Inc.+ 5,600 372,120
Applera Corp. -- Applied
Biosystems Group 19,350 365,134
ImClone Systems, Inc.*+ 6,620 349,867
Laboratory Corporation of America
Holdings*+ 7,730 337,956
Elan Corp. PLC -- SP ADR*+ 14,370 336,258
Novo-Nordisk A/S -- SP ADR 5,700 312,189
Hillenbrand Industries, Inc. 6,167 311,619
Coventry Health Care, Inc.*+ 5,590 298,338
Cephalon, Inc.*+ 5,870 281,173
Henry Schein, Inc.*+ 4,490 279,772
Covance, Inc.* 6,890 275,393
Dade Behring Holdings, Inc.* 4,560 254,074
Chiron Corp.*+ 5,340 236,028
MGI Pharma, Inc.* 8,590 229,267
Edwards Lifesciences Corp.* 6,745 225,957
Amylin Pharmaceuticals, Inc.*+ 10,830 222,232
Barr Pharmaceuticals, Inc.* 5,055 209,429
Humana, Inc.* 10,460 208,991
Cerner Corp.*+ 4,660 201,592
Pacificare Health Systems, Inc.* 5,270 193,409
Beckman Coulter, Inc. 3,364 188,788
Andrx Corp.* 8,391 187,623
DaVita, Inc.* 5,990 186,589
Omnicare, Inc. 6,561 186,070
First Health Group Corp.* 11,501 185,051
Invacare Corp. 3,844 176,824
Sierra Health Services, Inc.* 3,680 176,382
Invitrogen Corp.*+ 3,160 173,768
Health Management Associates,
Inc. -- Class A+ 8,500 173,655
Manor Care, Inc. 5,780 173,169
WellChoice, Inc.* 4,330 161,639
Hospira, Inc.* 5,240 160,344
Pharmaceutical Product
Development, Inc.* 4,431 159,516
Universal Health Services, Inc. --
Class B+ 3,610 157,035
Health Net, Inc.* 6,090 150,545
Visx, Inc.*+ 6,610 136,166
Accredo Health, Inc.* 5,728 135,009
Community Health Systems, Inc.* 4,900 130,732
Haemonetics Corp./MA* 3,890 127,748
American Healthways, Inc.* 4,230 123,135
Vertex Pharmaceuticals, Inc.*+ 11,707 122,924
Conmed Corp.* 4,560 119,928
Chemed Corp. 2,010 112,037
Service Corporation International/US* 17,950 111,470
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
HEALTH CARE FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Priority Healthcare Corp. --
Class B* 5,270 $ 106,191
Sola International, Inc.* 5,350 101,918
Arthocare Corp.* 3,450 101,051
Analogic Corp.+ 2,142 89,300
Pediatrix Medical Group, Inc.* 1,430 78,436
Regeneron Pharmaceuticals, Inc.* 8,920 77,426
RehabCare Group, Inc.* 2,712 62,457
Protein Design Labs, Inc.* 2,940 57,565
Triad Hospitals, Inc.* 1,529 52,659
-----------
TOTAL COMMON STOCKS
(Cost $45,094,190) 50,984,167
-----------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.1%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 538,317 538,317
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $538,317) 538,317
-----------
SECURITIES LENDING COLLATERAL 17.1%
Investment in Securities Lending Short Term
Investment Porfolio Held by
U.S. Bank (Note 7) 8,913,225 8,913,225
-----------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,913,225) 8,913,225
-----------
TOTAL INVESTMENTS 116.3%
(Cost $54,545,732) $60,435,709
===========
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (16.3)% $(8,481,638)
===========
NET ASSETS -- 100.0% $51,954,071
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
32 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
INTERNET FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.5%
Cisco Systems, Inc.* 67,909 $ 1,229,153
eBay, Inc.*+ 10,769 990,102
Qualcomm, Inc.+ 21,380 834,675
Time Warner, Inc.*+ 50,478 814,715
Yahoo!, Inc.*+ 22,240 754,158
Research In Motion Ltd.*+ 7,824 597,284
Amazon.com, Inc.*+ 12,889 526,644
Intuit, Inc.*+ 10,932 496,313
Symantec Corp.*+ 8,674 476,029
Qwest Communications
International, Inc.* 118,130 393,373
McAfee, Inc.*+ 17,319 348,112
TIBCO Software, Inc.* 34,753 295,748
Sun Microsystems, Inc.* 70,921 286,521
Juniper Networks, Inc.*+ 12,011 283,460
WebMD Corp.* 38,517 268,078
EarthLink, Inc.*+ 25,989 267,687
E*Trade Financial Corp.* 22,730 259,577
F5 Networks, Inc.*+ 8,336 253,915
InterActiveCorp*+ 11,213 246,910
CheckFree Corp.* 8,681 240,203
Red Hat, Inc.*+ 18,450 225,828
VeriSign, Inc.* 10,644 211,603
United Online, Inc.* 18,630 179,221
Jupitermedia Corp.* 7,706 137,167
Priceline.com, Inc.*+ 5,976 132,488
ValueClick, Inc.* 13,795 130,225
Netflix, Inc.*+ 8,360 128,911
Digitas, Inc.* 15,630 120,820
aQuantive, Inc.* 12,520 120,818
Broadcom Corp. -- Class A*+ 4,406 120,240
Siebel Systems, Inc.* 13,210 99,603
Foundry Networks, Inc.* 10,303 97,775
PalmOne, Inc.*+ 3,030 92,233
NetBank, Inc. 8,400 84,084
Check Point Software Technologies
Ltd.* 4,820 81,795
BEA Systems, Inc.* 9,079 62,736
Monster Worldwide, Inc.* 2,336 57,559
WebEx Communications, Inc.* 1,910 41,676
Sonicwall, Inc.* 6,080 41,101
CNET Networks, Inc.* 2,560 23,424
Akamai Technologies, Inc.*+ 1,620 22,761
------------
TOTAL COMMON STOCKS
(Cost $8,278,548) 12,074,725
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.5%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 182,163 $ 182,163
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $182,163) 182,163
------------
SECURITIES LENDING COLLATERAL 26.6%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 3,269,240 3,269,240
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,269,240) 3,269,240
------------
TOTAL INVESTMENTS 126.6%
(Cost $11,729,951) $ 15,526,128
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (26.6)% $ (3,266,043)
============
NET ASSETS -- 100.0% $ 12,260,085
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 33
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
LEISURE FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 97.9%
Time Warner, Inc.*+ 150,162 $ 2,423,615
Walt Disney Co. 88,600 1,997,930
McDonald's Corp. 64,620 1,811,299
Viacom, Inc. -- Class B 43,630 1,464,223
Starbucks Corp.*+ 30,864 1,403,077
International Game Technology, Inc. 36,254 1,303,331
Marriott International, Inc. --
Class A+ 23,036 1,196,951
Mattel, Inc.+ 60,968 1,105,350
Electronic Arts, Inc.*+ 22,818 1,049,400
Carnival Corp.+ 22,013 1,040,995
MGM Mirage, Inc.* 20,180 1,001,937
Fox Entertainment Group, Inc. --
Class A*+ 28,360 786,706
Brinker International, Inc.*+ 25,160 783,734
Choice Hotels International, Inc. 13,323 767,272
Applebee's International, Inc. 29,917 756,302
Hasbro, Inc.+ 38,406 722,033
CEC Entertainment, Inc.* 19,490 716,257
Ruby Tuesday, Inc.+ 25,674 715,534
Jack in the Box, Inc.* 21,340 677,118
WMS Industries, Inc.*+ 25,380 652,012
Argosy Gaming Co.* 15,236 597,251
Hilton Hotels Corp. 30,640 577,258
THQ, Inc.*+ 29,140 567,064
Lone Star Steakhouse & Saloon, Inc. 21,809 563,326
Ryan's Restaurant Group, Inc.* 37,600 557,984
Yum! Brands, Inc.+ 13,718 557,774
Papa John's International, Inc.* 17,845 547,485
4Kids Entertainment, Inc.* 26,637 538,067
CBRL Group, Inc.+ 14,820 534,706
Krispy Kreme Doughnuts, Inc.*+ 42,190 534,125
Landry's Restaurants, Inc. 18,500 504,865
Arctic Cat, Inc. 19,309 501,069
Multimedia Games, Inc.* 31,450 487,475
Sonic Corp.* 18,920 484,920
Eastman Kodak Co.+ 14,448 465,515
Sturm Ruger & Co., Inc. 51,163 460,979
Starwood Hotels & Resorts
Worldwide, Inc. 9,516 441,733
Activision, Inc.* 31,826 441,427
Polaris Industries, Inc. 7,788 434,726
Outback Steakhouse, Inc. 9,948 413,140
Darden Restaurants, Inc. 17,520 408,566
Bally Total Fitness Holding Corp.* 105,170 382,819
Wendy's International, Inc. 11,130 373,968
News Corp. Ltd. -- SP ADR+ 11,330 372,417
Scientific Games Corp. -- Class A* 14,522 277,370
Mandalay Resort Group 4,022 276,110
Marvel Enterprises, Inc.* 17,837 259,707
Caesars Entertainment, Inc.* 14,150 236,305
Harrah's Entertainment, Inc. 4,398 233,006
Pixar, Inc.*+ 2,760 217,764
International Speedway Corp. --
Class A 4,200 209,580
Shuffle Master, Inc.*+ 5,170 193,668
Action Performance Cos., Inc. 18,620 188,621
Jakks Pacific, Inc.* 7,370 169,510
Brunswick Corp. 3,270 149,635
Meade Instruments Corp.* 44,873 139,555
GTECH Holdings Corp. 5,300 134,196
Station Casinos, Inc. 1,610 78,954
Metro-Goldwyn-Mayer, Inc.* 6,610 76,478
Boyd Gaming Corp. 1,190 33,498
------------
TOTAL COMMON STOCKS
(Cost $34,494,768) 36,997,692
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 349,928 349,928
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $349,928) 349,928
------------
SECURITIES LENDING COLLATERAL 14.1%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 5,306,998 5,306,998
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,306,998) 5,306,998
------------
TOTAL INVESTMENTS 112.9%
(Cost $40,151,694) $ 42,654,618
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (12.9)% $ (4,867,210)
============
NET ASSETS -- 100.0% $ 37,787,408
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
34 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.6%
Newmont Mining Corp.+ 725,732 $ 33,042,578
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 619,886 25,105,383
Barrick Gold Corp. 671,842 14,135,556
AngloGold Ashanti Ltd. -- SP ADR+ 358,600 13,949,540
Placer Dome, Inc.+ 656,606 13,053,327
Pan American Silver Corp.*+ 648,864 11,050,154
Coeur d'Alene Mines Corp.*+ 2,281,671 10,815,121
Gold Fields Ltd. -- SP ADR+ 784,077 10,702,651
Goldcorp, Inc. 768,412 10,650,190
Harmony Gold Mining Co. Ltd. --
SP ADR+ 763,681 10,401,335
Wheaton River Minerals Ltd.*+ 2,673,456 8,421,386
Golden Star Resources Ltd.*+ 1,544,738 8,140,769
Silver Standard Resources, Inc.*+ 491,167 8,114,079
Hecla Mining Co.* 1,072,536 7,979,668
Glamis Gold Ltd.* 422,527 7,913,931
Bema Gold Corp.* 2,386,585 7,613,206
Kinross Gold Corp.* 1,058,384 7,175,844
Meridian Gold, Inc.* 417,873 6,986,837
Apex Silver Mines Ltd.* 316,216 6,861,887
Agnico-Eagle Mines Ltd.+ 450,354 6,431,055
Cia de Minas Buenaventura SA --
SP ADR 267,684 6,357,495
Stillwater Mining Co.* 399,485 6,192,017
Durban Roodepoort Deep Ltd. --
SP ADR*+ 2,107,233 4,237,646
-------------
TOTAL COMMON STOCKS
(Cost $172,908,721) 245,331,655
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 1.9%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 4,795,056 $ 4,795,056
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,795,056) 4,795,056
-------------
SECURITIES LENDING COLLATERAL 24.7%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 61,413,695 61,413,695
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $61,413,695) 61,413,695
-------------
TOTAL INVESTMENTS 125.2%
(Cost $239,117,472) $ 311,540,406
=============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (25.2)% $ (62,638,209)
=============
NET ASSETS -- 100.0% $ 248,902,197
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 35
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
REAL ESTATE FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 97.0%
Equity Office Properties Trust+ 35,024 $ 954,404
Simon Property Group, Inc.+ 17,676 947,964
Equity Residential 29,060 900,860
Rouse Co. 13,050 872,784
Vornado Realty Trust 13,356 837,154
General Growth Properties, Inc.+ 24,283 752,773
KIMCO Realty Corp. 14,435 740,515
Archstone-Smith Trust 23,298 737,149
Plum Creek Timber (REIT) Co., Inc. 20,937 733,423
Boston Properties, Inc. 13,120 726,717
Public Storage, Inc. 14,580 722,439
ProLogis 20,319 716,042
Duke Realty Corp. 19,700 654,040
AvalonBay Communities, Inc.+ 10,370 624,481
iStar Financial, Inc. 14,990 618,038
Developers Diversified Realty Corp. 14,790 579,028
Health Care Property Investors, Inc. 21,070 547,820
Apartment Investment & Management
Co. -- Class A 15,350 533,873
Liberty Property Trust+ 13,070 520,709
Macerich Co.+ 9,610 512,117
Weingarten Realty Investors 15,225 502,577
Mack-Cali Realty Corp. 11,300 500,590
AMB Property Corp. 13,190 488,294
Chelsea Property Group, Inc. 7,260 487,146
Regency Centers Corp.+ 10,460 486,285
Mills Corp. 9,360 485,503
New Plan Excel Realty Trust 19,162 479,050
Hospitality Properties Trust 11,210 476,313
Pan Pacific Retail Properties, Inc. 8,350 451,735
United Dominion Realty Trust, Inc.+ 22,489 445,957
Thornburg Mortgage, Inc. 15,120 438,631
CenterPoint Properties Trust 10,010 436,236
Arden Realty, Inc. 13,373 435,692
Rayonier, Inc. 9,560 432,494
Federal Realty Investment Trust+ 9,820 432,080
CBL & Associates Properties, Inc.+ 7,010 427,259
Shurgard Storage Centers, Inc. --
Class A 10,660 413,608
BRE Properties -- Class A+ 10,770 413,029
CarrAmerica Realty Corp. 12,550 410,385
SL Green Realty Corp. 7,850 406,708
HRPT Properties Trust 37,001 406,641
Health Care REIT, Inc. 11,550 406,560
Camden Property Trust+ 8,540 394,548
Reckson Associates Realty Corp.+ 13,550 389,563
Prentiss Properties Trust 10,710 385,560
Realty Income Corp. 8,560 385,457
Pennsylvania Real Estate Investment
Trust 9,716 375,621
Essex Property Trust, Inc. 5,200 373,620
Healthcare Realty Trust, Inc. 9,510 371,270
Cousins Properties, Inc. 10,437 358,093
First Industrial Realty Trust, Inc.+ 9,627 355,236
Crescent Real Estate EQT Co.+ 22,546 354,874
Washington Real Estate Investment
Trust 11,310 342,693
Taubman Centers, Inc. 13,245 342,118
Alexandria Real Estate Equities, Inc. 5,112 335,961
Nationwide Health Properties, Inc. 16,098 334,034
Heritage Property Investment Trust 11,212 327,054
Highwoods Properties, Inc. 13,050 321,161
Home Properties, Inc. 7,980 315,689
Brandywine Realty Trust+ 11,060 314,989
Capital Automotive REIT 9,954 311,262
Kilroy Realty Corp. 8,175 310,895
Post Properties, Inc. 10,300 307,970
Lexington Corporate Properties
Trust 13,512 293,346
Colonial Properties Trust 7,097 285,441
Gables Residential Trust 8,287 283,001
Glimcher Realty Trust 11,322 275,125
Commercial Net Lease Realty 15,006 273,409
Corporate Office Properties Trust
SBI/MD 10,652 272,904
Summit Properties, Inc. 10,050 271,853
Entertainment Properties Trust+ 7,160 270,648
LaSalle Hotel Properties 9,739 268,796
PS Business Parks, Inc. 6,685 266,397
Mid-America Apartment
Communities, Inc. 6,630 258,239
Manufactured Home Communities,
Inc. 7,673 255,051
Eastgroup Properties 7,522 249,730
Sun Communities, Inc. 6,371 249,679
National Health Investors, Inc. 8,756 249,021
Tanger Factory Outlet Centers, Inc. 5,307 237,647
Cornerstone Realty Income Trust,
Inc. 24,331 237,471
Sovran Self Storage, Inc. 5,874 230,143
FelCor Lodging Trust, Inc.* 19,406 219,482
Innkeepers USA Trust 17,640 219,442
AMLI Residential Properties Trust 7,130 217,822
Glenborough Realty Trust, Inc. 10,257 213,038
Parkway Properties, Inc./MD 4,328 201,036
Saul Centers, Inc. 6,088 200,173
See Notes to Financial Statements.
36 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
REAL ESTATE FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Equity Inns, Inc. 19,800 $ 195,624
CRT Properties, Inc. 9,039 193,887
Kramont Realty Trust 10,395 193,347
US Restaurant Properties, Inc. 11,259 190,165
Bedford Property Investors, Inc. 5,930 179,916
Ramco-Gershenson Properties 6,609 178,972
Town & Country Trust 6,740 171,533
Meristar Hospitality Corp.* 31,148 169,757
Correctional Properties Trust 5,688 155,282
Winston Hotels, Inc. 14,389 153,962
Associated Estates Realty Corp. 14,973 149,580
Urstadt Biddle Properties, Inc. 8,375 127,635
------------
TOTAL COMMON STOCKS
(Cost $35,105,419) 39,461,325
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.0%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 406,636 406,636
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $406,636) 406,636
------------
SECURITIES LENDING COLLATERAL 7.2%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 2,919,459 2,919,459
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,919,459) 2,919,459
------------
TOTAL INVESTMENTS 105.2%
(Cost $38,431,514) $ 42,787,420
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (5.2)% $ (2,128,848)
============
NET ASSETS -- 100.0% $ 40,658,572
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 37
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
RETAILING FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.2%
Wal-Mart Stores, Inc. 14,818 $ 788,318
Home Depot, Inc. 14,918 584,786
eBay, Inc.*+ 5,260 483,604
Lowe's Cos., Inc.+ 7,944 431,756
Costco Wholesale Corp.+ 7,540 313,362
Target Corp. 6,273 283,853
Amazon.com, Inc.*+ 6,865 280,504
The Gap, Inc.+ 14,630 273,581
InterActiveCorp*+ 11,480 252,790
Sherwin-Williams Co. 5,350 235,186
Limited Brands, Inc.+ 10,350 230,701
Weight Watchers International,
Inc.*+ 5,100 197,982
Walgreen Co. 5,461 195,668
Staples, Inc.+ 6,460 192,637
Office Depot, Inc.*+ 12,795 192,309
Abercrombie & Fitch Co. --
Class A+ 5,990 188,685
Boise Cascade Corp. 5,570 185,370
Claire's Stores, Inc. 7,190 180,038
BJ's Wholesale Club, Inc.*+ 6,439 176,042
Neiman-Marcus Group, Inc. --
Class A+ 2,990 171,925
CVS Corp. 4,015 169,152
Nordstrom, Inc. 4,210 160,990
AutoZone, Inc.*+ 2,080 160,680
Advance Auto Parts, Inc.*+ 4,670 160,648
Regis Corp. 3,940 158,467
Chico's FAS, Inc.*+ 4,620 158,004
Building Material Holding Corp. 5,555 152,874
Urban Outfitters, Inc.*+ 4,400 151,360
Rent-A-Center, Inc.* 5,850 151,281
Insight Enterprises, Inc.* 8,810 148,360
Select Comfort Corp.* 7,970 145,054
Dress Barn, Inc.* 7,943 138,605
J. Jill Group, Inc.* 6,864 136,250
Movie Gallery, Inc. 7,670 134,455
Rite Aid Corp.*+ 37,300 131,296
PETCO Animal Supplies, Inc.* 3,970 129,660
JC Penney Holding Co., Inc.+ 3,660 129,125
Kmart Holding Corp.*+ 1,390 121,583
PEP Boys-Manny Moe & Jack+ 8,540 119,560
Payless Shoesource, Inc.*+ 11,760 119,129
Kohl's Corp.*+ 2,289 110,307
Charming Shoppes, Inc.* 14,564 103,696
United Auto Group, Inc. 4,060 101,865
NeighborCare, Inc.* 3,735 94,682
Best Buy Co., Inc. 1,729 93,781
May Department Stores Co. 3,585 91,884
AnnTaylor Stores Corp.* 3,811 89,177
Aaron Rents, Inc.+ 3,410 74,202
American Eagle Outfitters, Inc.+ 1,913 70,494
Tractor Supply Co.* 2,230 70,111
Bed Bath & Beyond, Inc.* 1,610 59,747
Christopher & Banks Corp. 3,680 58,917
Petsmart, Inc. 1,977 56,127
TJX Cos., Inc. 2,154 47,474
Sears Roebuck and Co.+ 1,057 42,121
Adesa, Inc.* 2,500 41,075
AutoNation, Inc.*+ 2,390 40,821
Netflix, Inc.*+ 2,580 39,784
Federated Department Stores, Inc. 660 29,984
Stein Mart, Inc.* 1,680 25,570
Longs Drug Stores Corp. 1,010 24,442
Dollar General Corp. 1,170 23,576
Genuine Parts Co. 560 21,493
Sonic Automotive, Inc. 820 16,441
Williams-Sonoma, Inc.* 300 11,265
------------
TOTAL COMMON STOCKS
(Cost $7,766,569) 10,154,666
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.4%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 142,440 142,440
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $142,440) 142,440
------------
SECURITIES LENDING COLLATERAL 22.3%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 2,309,636 2,309,636
------------
See Notes to Financial Statements.
38 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
RETAILING FUND
MARKET
VALUE
(NOTE 1)
- -------------------------------------------------------------------------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,309,636) $ 2,309,636
------------
TOTAL INVESTMENTS 121.9%
(Cost $10,218,645) $ 12,606,742
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (21.9)% $ (2,266,432)
============
NET ASSETS -- 100.0% $ 10,340,310
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 39
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 98.0%
Microsoft Corp. 107,702 $ 2,977,960
Intel Corp. 83,457 1,674,147
Cisco Systems, Inc.*+ 85,698 1,551,134
International Business Machines
Corp. 15,217 1,304,706
Oracle Corp.* 109,461 1,234,720
Hewlett-Packard Co.+ 58,806 1,102,612
Dell, Inc.*+ 25,317 901,285
Qualcomm, Inc. 20,470 799,149
Yahoo!, Inc.*+ 19,734 669,180
Texas Instruments, Inc. 28,983 616,758
Motorola, Inc. 33,592 606,000
Corning, Inc.*+ 47,485 526,134
First Data Corp. 12,015 522,653
Sun Microsystems, Inc.* 121,413 490,509
Computer Associates International,
Inc.+ 14,580 383,454
Intuit, Inc.*+ 8,220 373,188
Computer Sciences Corp.* 7,786 366,721
Symantec Corp.*+ 6,378 350,025
Analog Devices, Inc.+ 8,110 314,506
Adobe Systems, Inc. 6,320 312,650
Lucent Technologies, Inc.*+ 96,900 307,173
EMC Corp./MA*+ 26,010 300,155
Micron Technology, Inc.*+ 24,814 298,512
Applied Materials, Inc.* 17,859 294,495
Lexmark International, Inc.* 3,124 262,447
Network Appliance, Inc.*+ 10,804 248,492
Agilent Technologies, Inc.* 11,230 242,231
Iron Mountain, Inc.* 6,720 227,472
Jabil Circuit, Inc.*+ 9,564 219,972
Autodesk, Inc.+ 4,520 219,808
Xerox Corp.*+ 15,388 216,663
CDW Corp.+ 3,728 216,336
Apple Computer, Inc.* 5,506 213,358
Juniper Networks, Inc.*+ 8,874 209,426
KLA-Tencor Corp.*+ 4,972 206,239
Broadcom Corp. -- Class A*+ 7,206 196,652
National Semiconductor Corp.*+ 12,340 191,147
Microchip Technology, Inc.+ 7,089 190,269
Novellus Systems, Inc.* 7,138 189,799
Harris Corp.+ 3,426 188,224
Cadence Design Systems, Inc.*+ 13,746 179,248
McAfee, Inc.*+ 8,805 176,981
Paychex, Inc.+ 5,862 176,739
Electronic Data Systems Corp. 9,100 176,449
Maxim Integrated Products, Inc.+ 4,135 174,869
Sabre Holdings Corp.+ 6,930 169,993
Veritas Software Corp.* 9,372 166,822
Alliance Data Systems Corp.* 4,050 164,268
Advanced Micro Devices, Inc.*+ 12,303 159,939
Automatic Data Processing, Inc. 3,814 157,594
Storage Technology Corp.*+ 5,920 149,539
Tektronix, Inc.+ 4,472 148,694
Ingram Micro, Inc. -- Class A* 8,993 144,787
Xilinx, Inc.+ 5,146 138,942
Siebel Systems, Inc.* 18,092 136,414
CheckFree Corp.* 4,860 134,476
National Instruments Corp.+ 4,442 134,459
BMC Software, Inc.* 8,372 132,361
SunGard Data Systems, Inc.* 5,461 129,808
Teradyne, Inc.*+ 9,063 121,444
Synopsys, Inc.* 7,570 119,833
Polycom, Inc.* 5,794 114,837
Citrix Systems, Inc.*+ 6,520 114,230
Zebra Technologies Corp. --
Class A* 1,865 113,784
Scientific-Atlanta, Inc. 4,370 113,270
Waters Corp.*+ 2,554 112,631
Red Hat, Inc.*+ 9,052 110,796
JDS Uniphase Corp.*+ 32,370 109,087
BearingPoint, Inc.* 12,200 109,068
QLogic Corp.*+ 3,630 107,484
Ceridian Corp.* 5,808 106,925
TIBCO Software, Inc.* 12,370 105,269
MEMC Electronic Materials, Inc.*+ 12,382 104,999
Factset Research Systems, Inc. 1,976 95,243
Fiserv, Inc.* 2,724 94,959
Parametric Technology Corp.* 17,760 93,773
Ask Jeeves, Inc.* 2,832 92,635
Thermo Electron Corp.* 3,264 88,193
Novell, Inc.*+ 13,976 88,189
Plantronics, Inc. 2,028 87,691
PMC - Sierra, Inc.*+ 9,926 87,448
Semtech Corp.*+ 4,538 86,993
Cognizant Technology Solutions
Corp.* 2,814 85,855
PerkinElmer, Inc. 4,980 85,756
Hyperion Solutions Corp.*+ 2,462 83,683
ADTRAN, Inc.+ 3,678 83,417
Utstarcom, Inc.*+ 5,086 81,935
Avid Technology, Inc.* 1,734 81,273
RSA Security, Inc.* 4,034 77,856
RF Micro Devices, Inc.* 12,096 76,689
Cognex Corp. 2,854 74,775
Avocent Corp.* 2,772 72,155
See Notes to Financial Statements.
40 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Nvidia Corp.*+ 4,966 $ 72,106
Atmel Corp.*+ 19,895 72,020
Varian Semiconductor Equipment
Associates, Inc.* 2,320 71,688
Anixter International, Inc.*+ 2,020 70,882
Comverse Technology, Inc.*+ 3,624 68,240
Sanmina-SCI Corp.* 9,643 67,983
Cypress Semiconductor Corp.*+ 7,567 66,892
Micrel, Inc.* 6,410 66,728
Cymer, Inc.*+ 2,320 66,491
Benchmark Electronics, Inc.* 2,220 66,156
eFunds Corp.* 3,440 63,950
Skyworks Solutions, Inc.*+ 6,720 63,840
Scansource, Inc.* 980 62,524
Websense, Inc.* 1,494 62,255
Adaptec, Inc.* 7,966 60,542
Technitrol, Inc.* 2,994 58,383
CSG Systems International, Inc.* 3,750 57,788
Trimble Navigation Ltd.* 1,818 57,449
Flir Systems, Inc.*+ 980 57,330
Mercury Interactive Corp.* 1,630 56,854
Axcelis Technologies, Inc.* 6,720 55,642
Mettler Toledo International, Inc.* 1,178 55,625
Akamai Technologies, Inc.*+ 3,950 55,498
THQ, Inc.*+ 2,832 55,111
Vishay Intertechnology, Inc.*+ 4,062 52,400
ADC Telecommunications, Inc.* 28,832 52,186
BEA Systems, Inc.* 7,438 51,397
Global Imaging Systems, Inc.* 1,652 51,344
Progress Software Corp.* 2,564 51,024
Rogers Corp.* 1,192 50,648
Black Box Corp. 1,326 48,996
Agilsys, Inc. 2,786 48,170
Sandisk Corp.*+ 1,618 47,116
WebEx Communications, Inc.* 2,143 46,760
Hewitt Associates, Inc. -- Class A* 1,720 45,511
DSP Group, Inc.* 2,139 45,026
Filenet Corp.* 2,572 44,907
Reynolds & Reynolds Co. -- Class A 1,720 42,432
j2 Global Communications, Inc.* 1,270 40,119
Foundry Networks, Inc.* 3,931 37,305
Symmetricom, Inc.* 3,940 37,272
DST Systems, Inc.*+ 828 36,821
Silicon Laboratories, Inc.* 1,110 36,730
Helix Technology Corp. 2,144 29,148
C-COR, Inc.* 3,300 27,885
Itron, Inc.* 1,474 25,721
Radisys Corp.* 1,700 23,715
Kulicke & Soffa Industries, Inc.* 4,096 23,142
Keithley Instruments, Inc. 1,316 22,964
Jack Henry & Associates, Inc. 880 16,518
Electro Scientific Industries, Inc.* 930 16,136
Inter-Tel, Inc. 660 14,269
Littelfuse, Inc.* 360 12,431
MapInfo Corp.* 608 6,566
SCM Microsystems, Inc.* 1,911 5,236
Solectron Corp.*+ 1,010 5,000
CIENA Corp.* 1,660 3,287
------------
TOTAL COMMON STOCKS
(Cost $24,727,567) 30,461,077
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.1%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 326,272 326,272
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $326,272) 326,272
------------
SECURITIES LENDING COLLATERAL 15.8%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 4,925,840 4,925,840
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,925,840) 4,925,840
------------
TOTAL INVESTMENTS 114.9%
(Cost $29,979,679) $ 35,713,189
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (14.9)% $ (4,624,587)
============
NET ASSETS -- 100.0% $ 31,088,602
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 41
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 97.6%
Vodafone Group PLC -- SP ADR+ 58,053 $ 1,399,658
Cisco Systems, Inc.* 58,440 1,057,764
Verizon Communications, Inc. 22,779 897,037
SBC Communications, Inc.+ 34,035 883,208
Qualcomm, Inc. 20,122 785,563
Nokia OYJ -- SP ADR 52,914 725,980
Telefonaktiebolaget LM Ericsson --
SP ADR*+ 22,551 704,493
BellSouth Corp.+ 24,278 658,419
AT&T Wireless Services, Inc.* 44,345 655,419
Motorola, Inc. 35,294 636,704
Sprint Corp.+ 28,702 577,771
Nextel Communications, Inc. --
Class A* 22,686 540,834
Corning, Inc.*+ 41,936 464,651
Avaya, Inc.* 29,710 414,157
Alltel Corp.+ 7,537 413,857
AT&T Corp.+ 26,596 380,855
Lucent Technologies, Inc.*+ 111,420 353,201
CenturyTel, Inc. 10,210 349,590
Juniper Networks, Inc.*+ 14,010 330,636
Alcatel SA -- SP ADR*+ 26,428 310,000
Nextel Partners, Inc. -- Class A*+ 14,470 239,913
Scientific-Atlanta, Inc. 8,467 219,465
Tellabs, Inc.*+ 22,867 210,148
JDS Uniphase Corp.*+ 59,618 200,913
Telephone & Data Systems, Inc. 2,365 199,062
Citizens Communications Co.+ 13,255 177,484
QLogic Corp.*+ 5,970 176,772
NII Holdings, Inc. -- Class B*+ 4,190 172,670
Western Wireless Corp.*+ 6,600 169,686
General Communication --
Class A* 18,350 166,067
Price Communications Corp.* 10,705 163,251
Harris Corp.+ 2,925 160,700
Plantronics, Inc. 3,390 146,584
CommScope, Inc.*+ 5,585 120,636
ADTRAN, Inc.+ 5,245 118,957
Comverse Technology, Inc.*+ 5,880 110,720
Boston Communications Group,
Inc.* 12,510 109,713
Level 3 Communications, Inc.*+ 41,520 107,537
Commonwealth Telephone
Enterprises, Inc.* 2,420 105,391
Utstarcom, Inc.*+ 6,390 102,943
Foundry Networks, Inc.* 10,564 100,252
Andrew Corp.* 8,009 98,030
ViaSat, Inc.* 4,783 96,138
Polycom, Inc.* 4,828 95,691
Belden CDT, Inc. 3,665 79,897
Cia Telecomunicaciones de Chile
SA-SP ADR 7,140 79,183
Advanced Fibre Communications,
Inc.* 4,960 78,864
Symmetricom, Inc.* 7,452 70,496
Crown Castle International Corp.* 4,720 70,234
ADC Telecommunications, Inc.* 38,510 69,703
Inter-Tel, Inc. 3,220 69,616
McData Corp. -- Class A* 13,030 65,541
Harmonic, Inc.* 9,115 60,615
C-COR, Inc.* 6,545 55,305
CIENA Corp.* 27,572 54,593
Audiovox Corp. -- Class A* 3,150 53,046
Digi International, Inc.* 4,408 50,383
Adaptec, Inc.* 6,575 49,970
Bel Fuse, Inc. -- Class B 1,350 44,658
China Telecom Corp. Ltd. --
SP ADR 1,360 43,928
Deutsche Telekom AG -- SP ADR*+ 2,100 39,186
Powerwave Technologies, Inc.* 5,740 35,358
Black Box Corp.+ 880 32,516
American Tower Corp. -- Class A*+ 1,920 29,472
Telecomunicacoes Brasileiras SA --
SP ADR 532 14,630
SCM Microsystems, Inc.* 4,794 13,136
Alamosa Holdings, Inc.*+ 1,120 8,557
Brasil Telecom Participacoes SP
ADR 250 8,100
MCI, Inc. 140 2,345
Tele Leste Celular Participacoes SA --
SP ADR* 8 122
------------
TOTAL COMMON STOCKS
(Cost $13,479,307) 17,287,974
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.1%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 195,035 195,035
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $195,035) 195,035
------------
See Notes to Financial Statements.
42 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 16.7%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) $ 2,947,994 $ 2,947,994
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,947,994) 2,947,994
------------
TOTAL INVESTMENTS 115.4%
(Cost $16,622,336) $ 20,431,003
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (15.4)% $ (2,724,253)
============
NET ASSETS -- 100.0% $ 17,706,750
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 43
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 100.7%
United Parcel Service, Inc. --
Class B+ 37,078 $ 2,814,962
FedEx Corp.+ 20,730 1,776,354
Burlington Northern Santa Fe Corp. 46,138 1,767,547
Norfolk Southern Corp.+ 54,949 1,634,183
Union Pacific Corp. 22,554 1,321,664
Southwest Airlines Co. 72,255 984,113
Ryder System, Inc.+ 20,783 977,632
CSX Corp.+ 24,320 807,424
CNF, Inc. 19,075 781,884
Expeditors International Washington,
Inc.+ 13,356 690,505
J.B. Hunt Transport Services, Inc.+ 17,569 652,513
EGL, Inc.*+ 21,489 650,257
Yellow Roadway Corp.*+ 13,858 649,802
Swift Transportation Co., Inc.*+ 38,362 645,249
Arkansas Best Corp. 16,960 621,075
Alaska Air Group, Inc.* 22,741 563,522
C.H. Robinson Worldwide, Inc.+ 11,535 535,109
SkyWest, Inc. 35,066 527,743
Sirva, Inc.* 21,423 490,587
JetBlue Airways Corp.*+ 22,803 477,039
Kirby Corp.* 10,450 419,567
Knight Transportation, Inc.* 18,995 406,873
Heartland Express, Inc. 20,824 384,203
Alexander & Baldwin, Inc. 10,646 361,325
Landstar System, Inc.* 5,380 315,698
AMR Corp.*+ 42,750 313,358
Kansas City Southern* 19,239 291,856
Canadian Pacific Railway Ltd. 8,860 228,411
Werner Enterprises, Inc. 11,107 214,476
SCS Transportation, Inc.* 10,110 191,483
USF Corp.+ 4,471 160,464
Frontier Airlines, Inc.* 18,781 144,238
Forward Air Corp.* 3,211 128,504
HUB Group, Inc. -- Class A* 3,030 112,868
FLYi, Inc.*+ 27,877 108,999
Delta Air Lines, Inc.*+ 18,653 61,368
ExpressJet Holdings, Inc.*+ 5,280 52,853
Mesa Air Group, Inc.* 9,210 46,971
AirTran Holdings, Inc.* 1,300 12,948
------------
TOTAL COMMON STOCKS
(Cost $20,814,986) 23,325,627
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.1%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 247,949 $ 247,949
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $247,949) 247,949
------------
SECURITIES LENDING COLLATERAL 18.3%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 4,253,130 4,253,130
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,253,130) 4,253,130
------------
TOTAL INVESTMENTS 120.1%
(Cost $25,316,065) $ 27,826,706
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (20.1)% $ (4,658,335)
============
NET ASSETS -- 100.0% $ 23,168,371
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
44 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
UTILITIES FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 97.9%
PG&E Corp.*+ 44,145 $ 1,342,020
Consolidated Edison, Inc.+ 29,384 1,235,303
Sempra Energy+ 32,157 1,163,762
DTE Energy Co.+ 27,086 1,142,758
KeySpan Corp.+ 28,204 1,105,597
Constellation Energy Group, Inc.+ 27,657 1,101,855
Xcel Energy, Inc.+ 62,069 1,075,035
Energy East Corp. 38,570 971,193
Equitable Resources, Inc.+ 17,588 955,204
Pepco Holdings, Inc.+ 47,159 938,464
NSTAR 18,078 887,630
Allegheny Energy, Inc.*+ 55,594 887,280
Northeast Utilities 45,420 880,694
Southern Union Co.*+ 40,947 839,403
OGE Energy Corp. 32,960 831,581
PNM Resources, Inc. 36,260 816,213
Sierra Pacific Resources Corp.*+ 88,020 787,779
WPS Resources Corp. 17,452 785,166
Idacorp, Inc. 26,486 769,683
Atmos Energy Corp. 30,428 766,481
Duquesne Light Holdings, Inc.+ 41,700 748,932
CMS Energy Corp.*+ 77,860 741,227
Avista Corp. 40,555 734,046
Aquila, Inc.*+ 230,868 720,308
Unisource Energy Corp. 29,575 720,151
Cleco Corp. 41,589 716,994
CH Energy Group, Inc. 15,203 696,297
Laclede Group, Inc. 22,824 667,146
Cascade Natural Gas Corp. 29,670 629,894
CenterPoint Energy, Inc.+ 60,026 621,869
Exelon Corp. 16,628 610,081
Dynegy, Inc. -- Class A*+ 122,204 609,798
El Paso Electric Co.* 35,483 570,212
Duke Energy Corp.+ 22,887 523,884
Southern Co.+ 17,410 521,952
Southwest Gas Corp. 21,653 518,589
Dominion Resources, Inc./VA+ 7,567 493,747
UIL Holding Corp. 9,868 485,407
TXU Corp. 9,698 464,728
Reliant Resources, Inc.*+ 45,700 426,381
Wisconsin Energy Corp.+ 12,321 393,040
FirstEnergy Corp.+ 9,368 384,838
NRG Energy, Inc.* 13,060 351,836
Entergy Corp. 5,223 316,566
Texas Genco Holdings, Inc. 6,740 314,421
FPL Group, Inc.+ 4,212 287,764
AES Corp.* 28,682 286,533
American Electric Power Co., Inc.+ 8,137 260,059
Progress Energy, Inc.+ 5,049 213,775
Green Mountain Power Corp. 7,739 201,601
Public Service Enterprise Group,
Inc.+ 4,248 180,965
Edison International+ 5,176 137,216
Ameren Corp.+ 2,965 136,835
Calpine Corp.*+ 43,660 126,614
PPL Corp. 2,638 124,461
Aqua America, Inc. 5,110 112,982
New Jersey Resources Corp. 2,680 110,952
Cinergy Corp.+ 1,947 77,101
NiSource, Inc. 438 9,202
MDU Resources Group, Inc. 40 1,053
American States Water Co. 29 722
------------
TOTAL COMMON STOCKS
(Cost $33,035,276) 35,533,280
------------
FACE
AMOUNT
------------
REPURCHASE AGREEMENTS 1.0%
Repurchase Agreement (Note 4)
1.71% due 10/01/04 $ 383,043 383,043
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $383,043) 383,043
------------
SECURITIES LENDING COLLATERAL 22.3%
Investment in Securities Lending Short Term
Investment Portfolio held by U.S.
Bank (Note 7) 8,083,540 8,083,540
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,083,540) 8,083,540
------------
TOTAL INVESTMENTS 121.2%
(Cost $41,501,859) $ 43,999,863
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (21.2)% $ (7,692,376)
============
NET ASSETS -- 100.0% $ 36,307,487
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE
NOTE 7.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 45
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4, and 7) $ 30,411,354 $ 60,297,478 $ 189,732,582 $ 24,046,977
Cash in Custodian Bank 849 59 180 349
Receivable for Securities Sold (Note 1) -- 1,429,876 13,117,181 --
Receivable for Shares Purchased 731,738 1,486,825 1,493,716 1,076,605
Investment Income Receivable (Note 1) 41,745 41,953 15 64,068
Other Assets 1,736 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 31,187,422 63,256,191 204,343,674 25,187,999
========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 2,386,271 7,583,211 52,868,168 1,748,026
Payable for Securities Purchased (Note 1) 84,416 -- -- 458,979
Liability for Shares Redeemed 154,687 2,491,790 11,982,168 474,186
Investment Advisory Fee Payable (Note 2) 29,982 32,459 100,264 18,758
Transfer Agent Fee Payable (Note 2) 8,818 9,547 29,489 5,517
Distribution and Service Fee Payable (Note 2) 1,818 1,793 2,915 1,655
Portfolio Accounting Fee Payable (Note 2) 3,527 3,819 11,796 2,207
Custody Fees Payable 1,051 1,229 2,853 613
Cash Payable to Custodian Bank -- -- -- --
Other Liabilities 8,882 12,014 38,985 11,693
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,679,452 10,135,862 65,036,638 2,721,634
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 28,507,970 $ 53,120,329 $ 139,307,036 $ 22,466,365
========================================================================================================================
ANALYSIS OF NET ASSETS
Paid-In Capital $ 71,525,981 $ 71,936,768 $ 308,400,540 $ 38,481,339
Undistributed Net Investment Income (Loss) 396,930 33,686 (986,373) 100,055
Accumulated Net Realized Loss on Investments (44,672,909) (24,638,964) (214,428,974) (17,329,681)
Net Unrealized Appreciation on Investments 1,257,968 5,788,839 46,321,843 1,214,652
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 28,507,970 $ 53,120,329 $ 139,307,036 $ 22,466,365
========================================================================================================================
Investor Class $ 10,961,569 $ 36,043,992 $ 113,659,242 $ 7,954,599
Advisor Class 15,914,681 9,728,959 21,125,026 12,454,037
A-Class 24,532 54,969 9,943 21,520
C-Class 1,607,188 7,292,409 4,512,825 2,036,209
SHARES OUTSTANDING
Investor Class 1,040,148 1,300,517 5,947,933 291,130
Advisor Class 1,574,665 360,421 1,146,779 468,180
A-Class 2,426 2,036 540 809
C-Class 159,226 272,676 244,910 76,921
NET ASSET VALUES
Investor Class $ 10.54 $ 27.72 $ 19.11 $ 27.32
Advisor Class 10.11 26.99 18.42 26.60
A-Class 10.11 27.00 18.43 26.60
A-Class Maximum Offering Price Per Share** 10.61 28.35 19.35 27.93
C-Class 10.09 26.74 18.43 26.47
* THE COST OF SECURITIES AT VALUE IS $29,153,386, $54,508,639, $143,410,739,
$22,832,325, $29,943,394, $152,333,157, $87,055,259, $38,541,176,
$54,545,732, $11,729,951, $40,151,694, AND $239,117,472, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
46 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
September 30, 2004
- --------------------------------------------------------------------------------
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4, and 7) $ 38,815,360 $ 175,244,730 $ 105,930,444 $ 40,367,445
Cash in Custodian Bank 41 182,016 128,771 --
Receivable for Securities Sold (Note 1) 5,816,508 381,985 2,175,964 2,825,018
Receivable for Shares Purchased 1,969,516 2,961,625 3,077,024 402,435
Investment Income Receivable (Note 1) 494 63,107 21,973 84,531
Other Assets -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 46,601,919 178,833,463 111,334,176 43,679,429
========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 7,009,431 23,463,476 17,615,930 6,332,886
Payable for Securities Purchased (Note 1) -- -- 307,985 --
Liability for Shares Redeemed 7,600,853 942,962 4,111,380 2,504,128
Investment Advisory Fee Payable (Note 2) 22,658 87,517 48,833 32,402
Transfer Agent Fee Payable (Note 2) 6,664 25,740 14,363 9,530
Distribution and Service Fee Payable (Note 2) 513 4,246 3,140 2,773
Portfolio Accounting Fee Payable (Note 2) 2,666 10,296 5,745 3,812
Custody Fees Payable 640 2,665 2,271 1,251
Cash Payable to Custodian Bank -- -- -- 133,389
Other Liabilities 9,957 36,443 18,000 12,090
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 14,653,382 24,573,345 22,127,647 9,032,261
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 31,948,537 $ 154,260,118 $ 89,206,529 $ 34,647,168
========================================================================================================================
ANALYSIS OF NET ASSETS
Paid-In Capital $ 193,750,431 $ 153,464,775 $ 154,365,533 $ 81,185,343
Undistributed Net Investment Income (Loss) (148,234) 261,019 (338,332) 342,631
Accumulated Net Realized Loss on Investments (170,525,626) (22,377,249) (83,695,857) (48,707,075)
Net Unrealized Appreciation on Investments 8,871,966 22,911,573 18,875,185 1,826,269
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 31,948,537 $ 154,260,118 $ 89,206,529 $ 34,647,168
========================================================================================================================
Investor Class $ 27,666,726 $ 123,176,775 $ 62,626,943 $ 9,502,892
Advisor Class 2,981,712 16,761,933 19,633,906 22,633,469
A-Class 1,023 48,479 9,161 21,671
C-Class 1,299,076 14,272,931 6,936,519 2,489,136
SHARES OUTSTANDING
Investor Class 2,837,620 8,717,156 2,428,558 856,174
Advisor Class 316,173 1,215,914 783,224 2,084,027
A-Class 108 3,515 365 1,995
C-Class 138,252 1,044,542 278,177 230,939
NET ASSET VALUES
Investor Class $ 9.75 $ 14.13 $ 25.79 $ 11.10
Advisor Class 9.43 13.79 25.07 10.86
A-Class 9.43 13.79 25.08 10.87
A-Class Maximum Offering Price Per Share** 9.90 14.48 26.33 11.41
C-Class 9.40 13.66 24.94 10.78
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4, and 7) $ 60,435,709 $ 15,526,128 $ 42,654,618 $ 311,540,406
Cash in Custodian Bank 66 -- -- --
Receivable for Securities Sold (Note 1) -- 2,286,133 816,279 4,175,586
Receivable for Shares Purchased 7,144,516 1,000,197 251,832 11,745,056
Investment Income Receivable (Note 1) 38,396 9 6,646 228
Other Assets -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 67,618,687 18,812,467 43,729,375 327,461,276
========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 8,913,225 3,269,240 5,306,998 61,413,695
Payable for Securities Purchased (Note 1) 251,916 -- -- 2,219,495
Liability for Shares Redeemed 6,434,418 3,260,910 601,000 14,686,563
Investment Advisory Fee Payable (Note 2) 33,122 10,301 17,291 117,841
Transfer Agent Fee Payable (Note 2) 9,742 3,030 5,085 39,280
Distribution and Service Fee Payable (Note 2) 2,936 654 2,305 3,888
Portfolio Accounting Fee Payable (Note 2) 3,897 1,212 2,034 15,712
Custody Fees Payable 969 329 504 3,925
Cash Payable to Custodian Bank -- 1,231 197 10,088
Other Liabilities 14,391 5,475 6,553 48,592
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 15,664,616 6,552,382 5,941,967 78,559,079
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 51,954,071 $ 12,260,085 $ 37,787,408 $ 248,902,197
========================================================================================================================
ANALYSIS OF NET ASSETS
Paid-In Capital $ 83,941,920 $ 48,576,913 $ 57,884,257 $ 269,679,719
Undistributed Net Investment Income (Loss) (205,707) (178,937) (191,908) (537,649)
Accumulated Net Realized Loss on Investments (37,672,119) (39,934,068) (22,407,865) (92,662,807)
Net Unrealized Appreciation on Investments 5,889,977 3,796,177 2,502,924 72,422,934
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 51,954,071 $ 12,260,085 $ 37,787,408 $ 248,902,197
========================================================================================================================
Investor Class $ 25,542,023 $ 6,795,240 $ 14,058,162 $ 224,090,645
Advisor Class 22,904,789 3,435,478 21,028,765 4,988,537
A-Class 21,450 11,382 1,042 78,874
C-Class 3,485,809 2,017,985 2,699,439 19,744,141
SHARES OUTSTANDING
Investor Class 2,118,947 206,152 528,836 5,438,866
Advisor Class 1,965,245 106,897 820,617 121,737
A-Class 1,840 354 41 1,925
C-Class 299,794 63,313 104,842 494,535
NET ASSET VALUES
Investor Class $ 12.05 $ 32.96 $ 26.58 $ 41.20
Advisor Class 11.65 32.14 25.63 40.98
A-Class 11.66 32.15 25.63 40.98
A-Class Maximum Offering Price Per Share** 12.24 33.75 26.91 43.02
C-Class 11.63 31.87 25.75 39.92
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 47
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4 and 7) $ 42,787,420 $ 12,606,742 $ 35,713,189 $ 20,431,003
Cash in Custodian Bank -- 12 -- 20
Receivable for Securities Sold (Note 1) 9,975,258 3,219,841 -- --
Receivable for Shares Purchased 3,295,355 72,823 936,262 679,466
Investment Income Receivable (Note 1) 195,182 4,428 8,570 11,520
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 56,253,215 15,903,846 36,658,021 21,122,009
========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 2,919,459 2,309,636 4,925,840 2,947,994
Payable for Securities Purchased (Note 1) -- -- 510,746 406,942
Liability for Shares Redeemed 12,595,103 3,236,908 89,377 39,036
Investment Advisory Fee Payable (Note 2) 42,809 8,581 22,046 11,169
Transfer Agent Fee Payable (Note 2) 12,591 2,524 6,484 3,285
Distribution and Service Fee Payable (Note 2) 2,069 664 1,577 589
Portfolio Accounting Fee Payable (Note 2) 5,036 1,010 2,594 1,314
Custody Fees Payable 1,741 265 660 322
Cash Payable to Custodian Bank 816 -- 219 --
Other Liabilities 15,019 3,948 9,876 4,608
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 15,594,643 5,563,536 5,569,419 3,415,259
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 40,658,572 $ 10,340,310 $ 31,088,602 $ 17,706,750
========================================================================================================================
ANALYSIS OF NET ASSETS
Paid-In Capital $ 41,076,545 $ 46,299,186 $ 109,293,584 $ 57,650,647
Undistributed Net Investment Income (Loss) 433,599 (65,497) (237,862) 969
Accumulated Net Realized Loss on Investments (5,207,478) (38,281,476) (83,700,630) (43,753,533)
Net Unrealized Appreciation on Investments 4,355,906 2,388,097 5,733,510 3,808,667
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 40,658,572 $ 10,340,310 $ 31,088,602 $ 17,706,750
========================================================================================================================
Investor Class N/A $ 4,564,215 $ 15,311,243 $ 11,558,447
Advisor Class N/A 4,679,883 14,965,692 4,801,947
A-Class $ 61,397 1,018 5,705 9,317
C-Class 913,051 1,095,194 805,962 1,337,039
H-Class 39,684,124 N/A N/A N/A
SHARES OUTSTANDING
Investor Class N/A 419,041 1,549,399 802,488
Advisor Class N/A 440,117 1,554,513 343,333
A-Class 2,299 96 593 666
C-Class 34,306 104,437 84,042 95,915
H-Class 1,485,722 N/A N/A N/A
NET ASSET VALUES
Investor Class N/A $ 10.89 $ 9.88 $ 14.40
Advisor Class N/A 10.63 9.63 13.99
A-Class $ 26.71 10.64 9.62 13.99
A-Class Maximum Offering Price Per Share** 28.04 11.17 10.10 14.69
C-Class 26.61 10.49 9.59 13.94
H-Class 26.71 N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $38,431,514, $10,218,645, $29,979,679,
$16,622,336, $25,316,065 AND $41,501,859, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
48 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
September 30, 2004
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- ----------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4 and 7) $ 27,826,706 $ 43,999,863
Cash in Custodian Bank 25 44
Receivable for Securities Sold (Note 1) 1,021,392 828,787
Receivable for Shares Purchased 4,517,736 2,764,920
Investment Income Receivable (Note 1) 18,084 85,711
- ----------------------------------------------------------------------------------
TOTAL ASSETS 33,383,943 47,679,325
==================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 4,253,130 8,083,540
Payable for Securities Purchased (Note 1) 585,248 373,850
Liability for Shares Redeemed 5,347,472 2,863,678
Investment Advisory Fee Payable (Note 2) 14,644 27,553
Transfer Agent Fee Payable (Note 2) 4,307 8,104
Distribution and Service Fee Payable (Note 2) 752 1,067
Portfolio Accounting Fee Payable (Note 2) 1,723 3,242
Custody Fees Payable 414 813
Cash Payable to Custodian Bank -- --
Other Liabilities 7,882 9,991
- ----------------------------------------------------------------------------------
TOTAL LIABILITIES 10,215,572 11,371,838
- ----------------------------------------------------------------------------------
NET ASSETS $ 23,168,371 $ 36,307,487
==================================================================================
ANALYSIS OF NET ASSETS
Paid-In Capital $ 44,816,523 $ 46,790,273
Undistributed Net Investment Income (Loss) (125,984) 370,169
Accumulated Net Realized Loss on Investments (24,032,809) (13,350,959)
Net Unrealized Appreciation on Investments 2,510,641 2,498,004
- ----------------------------------------------------------------------------------
NET ASSETS $ 23,168,371 $ 36,307,487
==================================================================================
Investor Class $ 16,721,658 $ 26,733,335
Advisor Class 5,290,788 6,743,792
A-Class 32,013 49,322
C-Class 1,123,912 2,781,038
H-Class N/A N/A
SHARES OUTSTANDING
Investor Class 818,907 1,252,814
Advisor Class 271,978 324,258
A-Class 1,646 2,371
C-Class 56,574 136,299
H-Class N/A N/A
NET ASSET VALUES
Investor Class $ 20.42 $ 21.34
Advisor Class 19.45 20.80
A-Class 19.45 20.80
A-Class Maximum Offering Price Per Share** 20.42 21.84
C-Class 19.87 20.40
H-Class N/A N/A
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 49
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,723 $ 2,671 $ 9,358 $ 2,323
Interest from Securities Lending, net (Note 7) 320 1,060 16,795 2,127
Dividends, Net of Foreign Tax Withheld* (Note 1) 272,299 340,758 40,981 514,248
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 274,342 344,489 67,134 518,698
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 2) 92,491 169,639 623,895 231,042
Transfer Agent and Administrative Fees (Note 2) 27,203 49,894 183,499 67,953
Distribution & Service Fees (Note 2):
Advisor Class 17,731 17,307 36,402 49,588
A-Class 1 3 1 1
C-Class 6,129 22,472 24,349 14,298
Accounting Fees (Note 2) 10,881 19,957 73,399 27,181
Registration Fees 4,502 10,645 38,362 12,265
Trustees' Fees 238 674 2,317 923
Custodian Fees 2,781 5,413 17,089 6,454
Miscellaneous 9,850 14,799 54,194 22,253
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 171,807 310,803 1,053,507 431,958
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 102,535 33,686 (986,373) 86,740
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 1,939,543 (974,783) (10,747,906) (1,688,574)
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 1,939,543 (974,783) (10,747,906) (1,688,574)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (875,541) 2,012,025 (2,671,616) (2,489,039)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (875,541) 2,012,025 (2,671,616) (2,489,039)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 1,064,002 1,037,242 (13,419,522) (4,177,613)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 1,166,537 $ 1,070,928 $(14,405,895) $ (4,090,873)
===========================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $801, $7,232, $0, $322, $70,776, $0,
$516, $0, $0, $72, AND $28,142, RESPECTIVELY.
See Notes to Financial Statements.
50 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
Period Ended September 30, 2004
- --------------------------------------------------------------------------------
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,285 $ 6,954 $ 3,609 $ 2,554
Interest from Securities Lending, net (Note 7) 2,253 6,845 2,930 1,130
Dividends, Net of Foreign Tax Withheld* (Note 1) 43,320 1,161,096 116,054 441,542
Other Income 86,284 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 134,142 1,174,895 122,593 445,226
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 2) 169,418 520,885 248,581 182,209
Transfer Agent and Administrative Fees (Note 2) 49,829 153,202 73,112 53,591
Distribution & Service Fees (Note 2):
Advisor Class 7,025 35,146 41,721 68,245
A-Class -- 1 1 1
C-Class 5,692 47,901 22,380 11,159
Accounting Fees (Note 2) 19,932 61,281 29,245 21,436
Registration Fees 12,764 24,872 15,865 12,673
Trustees' Fees 741 1,802 955 737
Custodian Fees 4,777 14,682 7,647 5,348
Miscellaneous 12,198 54,104 21,418 14,420
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 282,376 913,876 460,925 369,819
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (148,234) 261,019 (338,332) 75,407
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (2,909,909) (90,079) 413,103 2,800,002
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (2,909,909) (90,079) 413,103 2,800,002
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (9,130,790) 14,051,404 7,532,938 (4,707,160)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (9,130,790) 14,051,404 7,532,938 (4,707,160)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (12,040,699) 13,961,325 7,946,041 (1,907,158)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(12,188,933) $ 14,222,344 $ 7,607,709 $ (1,831,751)
===========================================================================================================================
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,149 $ 1,437 $ 2,118 $ 10,304
Interest from Securities Lending, net (Note 7) 4,452 1,720 3,044 50,758
Dividends, Net of Foreign Tax Withheld* (Note 1) 262,898 6,175 92,596 593,777
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 270,499 9,332 97,758 654,839
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 2) 246,070 101,057 147,296 660,957
Transfer Agent and Administrative Fees (Note 2) 72,374 29,723 43,322 220,319
Distribution & Service Fees (Note 2):
Advisor Class 63,784 16,375 47,923 5,012
A-Class -- -- -- 9
C-Class 20,889 9,194 7,829 82,915
Accounting Fees (Note 2) 28,950 11,889 17,329 88,045
Registration Fees 15,263 6,248 9,395 47,771
Trustees' Fees 952 429 602 2,893
Custodian Fees 6,736 4,562 4,356 21,047
Miscellaneous 21,188 8,792 11,614 63,520
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 476,206 188,269 289,666 1,192,488
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (205,707) (178,937) (191,908) (537,649)
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,893,956) (2,853,987) (3,324,227) (14,880,493)
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,893,956) (2,853,987) (3,324,227) (14,880,493)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (1,812,352) (2,213,836) (1,207,582) (11,292,199)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (1,812,352) (2,213,836) (1,207,582) (11,292,199)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (3,706,308) (5,067,823) (4,531,809) (26,172,692)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (3,912,015) $ (5,246,760) $ (4,723,717) $(26,710,341)
===========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 51
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,345 $ 926 $ 2,163 $ 1,040
Interest from Securities Lending, net (Note 7) 286 710 1,515 1,001
Dividends, Net of Foreign Tax Withheld* (Note 1) 705,638 64,401 62,645 131,366
Other Income -- -- 7,254 --
- -----------------------------------------------------------------------------------------------------------------------
Total Income 708,269 66,037 73,577 133,407
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 2) 167,548 67,761 163,032 73,164
Transfer Agent and Administrative Fees (Note 2) 49,279 19,930 47,951 21,519
Distribution & Service Fees (Note 2):
Advisor Class -- 16,223 45,013 7,880
A-Class 4 -- 1 --
C-Class 5,961 7,089 6,478 8,204
H-Class 47,785 -- -- --
Accounting Fees (Note 2) 19,712 7,972 19,180 8,607
Registration Fees 5,659 5,708 10,735 6,659
Trustees' Fees 462 321 657 343
Custodian Fees 5,481 2,180 5,097 2,000
Miscellaneous 20,514 4,350 13,295 4,062
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 322,405 131,534 311,439 132,438
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 385,864 (65,497) (237,862) 969
=======================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (5,021,624) 2,873,016 (3,750,925) (773,562)
- -----------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (5,021,624) 2,873,016 (3,750,925) (773,562)
- -----------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 2,775,315 (4,735,278) (2,851,920) (1,759,138)
- -----------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 2,775,315 (4,735,278) (2,851,920) (1,759,138)
- -----------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (2,246,309) (1,862,262) (6,602,845) (2,532,700)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(1,860,445) $(1,927,759) $(6,840,707) $(2,531,731)
=======================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $10,163, $52, AND $0,
RESPECTIVELY.
See Notes to Financial Statements.
52 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
Period Ended September 30, 2004
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- ---------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,535 $ 1,312
Interest from Securities Lending, net (Note 7) 1,660 1,454
Dividends, Net of Foreign Tax Withheld* (Note 1) 86,715 487,443
Other Income -- --
- ---------------------------------------------------------------------------------------
Total Income 89,910 490,209
- ---------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 2) 118,587 108,287
Transfer Agent and Administrative Fees (Note 2) 34,879 31,849
Distribution & Service Fees (Note 2):
Advisor Class 19,777 7,685
A-Class 1 1
C-Class 6,387 11,533
H-Class -- --
Accounting Fees (Note 2) 13,951 12,740
Registration Fees 4,293 5,108
Trustees' Fees 471 341
Custodian Fees 3,545 3,105
Miscellaneous 14,003 11,730
- ---------------------------------------------------------------------------------------
Total Expenses 215,894 192,379
- ---------------------------------------------------------------------------------------
Net Investment Income (Loss) (125,984) 297,830
=======================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (4,003,183) 922,708
- ---------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (4,003,183) 922,708
- ---------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 1,870,084 (507,698)
- ---------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,870,084 (507,698)
- ---------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (2,133,099) 415,010
- ---------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(2,259,083) $ 712,840
=======================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 53
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
BASIC
BANKING FUND MATERIALS FUND
- --------------------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- --------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 102,535 $ 294,395 $ 33,686 $ 41,945
Net Realized Gain (Loss) on Investments 1,939,543 5,208,481 (974,783) 970,658
Net Change in Unrealized Appreciation (Depreciation)
on Investments (875,541) 1,372,506 2,012,025 3,001,762
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 1,166,537 6,875,382 1,070,928 4,014,365
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (209,950) -- (49,324)
Advisor Class -- (89,392) -- (31,401)
A-Class -- -- -- --
C-Class -- (54,513) -- (5,139)
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (353,855) -- (85,864)
================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 153,277,915 263,796,205 187,982,600 473,178,311
Advisor Class 48,492,054 72,237,973 52,471,404 92,130,121
A-Class* 24,486 -- 53,622 --
C-Class 12,723,721 50,411,033 18,321,546 47,893,683
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- 203,266 -- 44,847
Advisor Class -- 88,307 -- 31,221
A-Class* -- -- -- --
C-Class -- 54,225 -- 5,100
COST OF SHARES REDEEMED
Investor Class (155,762,183) (263,744,420) (182,488,499) (449,151,836)
Advisor Class (36,447,069) (70,212,037) (56,180,168) (82,034,028)
A-Class* -- -- -- --
C-Class (13,012,893) (49,129,264) (16,653,555) (43,555,515)
================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 9,296,031 3,705,288 3,506,950 38,541,904
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 10,462,568 10,226,815 4,577,878 42,470,405
NET ASSETS--BEGINNING OF PERIOD 18,045,402 7,818,587 48,542,451 6,072,046
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 28,507,970 $ 18,045,402 $ 53,120,329 $ 48,542,451
================================================================================================================================
BIOTECHNOLOGY
FUND
- ------------------------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
- ------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (986,373) $ (2,385,128)
Net Realized Gain (Loss) on Investments (10,747,906) 37,486,079
Net Change in Unrealized Appreciation (Depreciation)
on Investments (2,671,616) 16,876,861
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (14,405,895) 51,977,812
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
- ------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
==========================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 455,226,284 1,031,631,184
Advisor Class 38,170,686 94,623,436
A-Class* 10,050 --
C-Class 19,748,309 47,745,758
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class -- --
COST OF SHARES REDEEMED
Investor Class (466,338,460) (1,051,806,619)
Advisor Class (27,048,191) (113,174,050)
A-Class* -- --
C-Class (17,950,907) (46,052,318)
==========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,817,771 (37,032,609)
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (12,588,124) 14,945,203
NET ASSETS--BEGINNING OF PERIOD 151,895,160 136,949,957
- ------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 139,307,036 $ 151,895,160
==========================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
See Notes to Financial Statements.
54 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
CONSUMER ELECTRONICS
PRODUCTS FUND FUND
- -----------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 86,740 $ 13,315 $ (148,234) $ (1,012,716)
Net Realized Gain (Loss) on Investments (1,688,574) 2,045,572 (2,909,909) 9,964,058
Net Change in Unrealized Appreciation (Depreciation)
on Investments (2,489,039) 3,169,653 (9,130,790) 12,806,032
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (4,090,873) 5,228,540 (12,188,933) 21,757,374
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (7,352) -- --
Advisor Class -- (33,486) -- --
A-Class -- -- -- --
C-Class -- (722) -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (41,560) -- --
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 207,239,104 196,708,966 413,630,959 1,182,685,864
Advisor Class 68,548,918 70,622,826 10,626,073 118,356,865
A-Class* 21,620 -- 1,000 --
C-Class 21,832,005 36,489,048 10,175,481 59,217,693
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- 7,015 -- --
Advisor Class -- 33,452 -- --
A-Class* -- -- -- --
C-Class -- 712 -- --
COST OF SHARES REDEEMED
Investor Class (220,410,895) (175,988,859) (421,559,833) (1,185,302,845)
Advisor Class (67,910,888) (64,068,113) (9,904,811) (126,081,528)
A-Class* -- -- -- --
C-Class (23,938,852) (32,771,945) (9,482,955) (59,966,230)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (14,618,988) 31,033,102 (6,514,086) (11,090,181)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (18,709,861) 36,220,082 (18,703,019) 10,667,193
NET ASSETS--BEGINNING OF PERIOD 41,176,226 4,956,144 50,651,556 39,984,363
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 22,466,365 $ 41,176,226 $ 31,948,537 $ 50,651,556
=======================================================================================================================
ENERGY ENERGY SERVICES
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- ---------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 261,019 $ (41,288) $ (338,332) $ (431,254)
Net Realized Gain (Loss) on Investments (90,079) (23,811) 413,103 (7,151,198)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 14,051,404 7,642,139 7,532,938 7,523,532
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 14,222,344 7,577,040 7,607,709 (58,920)
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (65,462) -- --
Advisor Class -- (3,224) -- --
A-Class -- -- -- --
C-Class -- (8,487) -- --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (77,173) -- --
=====================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 426,426,189 461,186,112 218,013,081 512,981,517
Advisor Class 60,851,605 62,110,100 55,494,580 79,146,593
A-Class* 47,747 -- 8,751 --
C-Class 37,572,207 40,063,775 23,488,362 35,220,082
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- 63,093 -- --
Advisor Class -- 2,956 -- --
A-Class* -- -- -- --
C-Class -- 7,225 -- --
COST OF SHARES REDEEMED
Investor Class (376,183,128) (408,781,015) (208,411,602) (478,723,101)
Advisor Class (50,670,311) (65,939,874) (62,310,393) (57,562,377)
A-Class* -- -- -- --
C-Class (31,272,859) (36,159,264) (20,162,855) (33,279,811)
=====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 66,771,450 52,553,108 6,119,924 57,782,903
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 80,993,794 60,052,975 13,727,633 57,723,983
NET ASSETS--BEGINNING OF PERIOD 73,266,324 13,213,349 75,478,896 17,754,913
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 154,260,118 $ 73,266,324 $ 89,206,529 $ 75,478,896
=====================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 55
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES HEALTH CARE
FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- -------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 75,407 $ 281,199 $ (205,707) $ (387,621)
Net Realized Gain (Loss) on Investments 2,800,002 9,599,350 (1,893,956) 5,293,825
Net Change in Unrealized Appreciation (Depreciation)
on Investments (4,707,160) 4,142,729 (1,812,352) 3,382,303
- -------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,831,751) 14,023,278 (3,912,015) 8,288,507
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (70,122) -- --
Advisor Class -- (132,732) -- --
A-Class -- -- -- --
C-Class -- (4,995) -- --
H-Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (207,849) -- --
=========================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 154,613,942 594,476,418 192,103,023 461,247,376
Advisor Class 31,566,302 92,754,854 38,047,898 109,155,775
A-Class** 21,619 -- 21,651 --
C-Class 18,489,744 32,748,098 14,545,473 59,658,401
H-Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- 64,634 -- --
Advisor Class -- 131,474 -- --
A-Class** -- -- -- --
C-Class -- 4,814 -- --
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (178,546,077) (571,461,138) (184,354,648) (457,266,075)
Advisor Class (48,984,690) (75,838,329) (40,614,069) (110,591,221)
A-Class** -- -- -- --
C-Class (18,231,672) (31,113,073) (13,651,718) (57,672,536)
H-Class -- -- -- --
=========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (41,070,832) 41,767,752 6,097,610 4,531,720
- -------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (42,902,583) 55,583,181 2,185,595 12,820,227
NET ASSETS--BEGINNING OF PERIOD 77,549,751 21,966,570 49,768,476 36,948,249
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 34,647,168 $ 77,549,751 $ 51,954,071 $ 49,768,476
=========================================================================================================================
INTERNET
FUND
- --------------------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
- --------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (178,937) $ (310,606)
Net Realized Gain (Loss) on Investments (2,853,987) 1,363,068
Net Change in Unrealized Appreciation (Depreciation)
on Investments (2,213,836) 5,188,786
- --------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (5,246,760) 6,241,248
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
- --------------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
======================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 274,351,947 307,483,479
Advisor Class 24,551,659 52,850,390
A-Class** 11,327 --
C-Class 11,245,772 25,321,387
H-Class -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class** -- --
C-Class -- --
H-Class -- --
COST OF SHARES REDEEMED
Investor Class (279,020,706) (300,417,421)
Advisor Class (32,146,249) (42,633,764)
A-Class** -- --
C-Class (10,424,986) (24,193,100)
H-Class -- --
======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (11,431,236) 18,410,971
- --------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (16,677,996) 24,652,219
NET ASSETS--BEGINNING OF PERIOD 28,938,081 4,285,862
- --------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 12,260,085 $ 28,938,081
======================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- C-CLASS AND
H-CLASS.
** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
See Notes to Financial Statements.
56 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
LEISURE PRECIOUS
FUND METALS FUND
- ---------------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- ---------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (191,908) $ (109,457) $ (537,649) $ (721,423)
Net Realized Gain (Loss) on Investments (3,324,227) (805,028) (14,880,493) 4,801,309
Net Change in Unrealized Appreciation (Depreciation)
on Investments (1,207,582) 3,278,299 (11,292,199) 66,036,897
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (4,723,717) 2,363,814 (26,710,341) 70,116,783
- ---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- (48,427)
Advisor Class -- -- -- (1,106)
A-Class -- -- -- --
C-Class -- -- -- (3,871)
H-Class -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- (53,404)
===========================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 130,577,962 316,109,325 714,965,235 2,222,457,741
Advisor Class 50,060,278 112,989,606 68,290,659 114,284,635
A-Class** 1,000 -- 70,294 --
C-Class 15,466,440 26,328,135 36,728,867 74,911,860
H-Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- 46,062
Advisor Class -- -- -- 1,084
A-Class** -- -- -- --
C-Class -- -- -- 3,010
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (139,609,025) (293,974,669) (702,412,733) (2,126,062,885)
Advisor Class (66,163,976) (78,428,491) (65,161,648) (113,643,013)
A-Class** -- -- -- --
C-Class (14,806,133) (24,356,804) (33,939,580) (62,325,519)
H-Class -- -- -- --
===========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (24,473,454) 58,667,102 18,541,094 109,672,975
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (29,197,171) 61,030,916 (8,169,247) 179,736,354
NET ASSETS--BEGINNING OF PERIOD 66,984,579 5,953,663 257,071,444 77,335,090
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 37,787,408 $ 66,984,579 $ 248,902,197 $ 257,071,444
===========================================================================================================================
REAL ESTATE RETAILING
FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004* 2004+ 2004
- --------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 385,864 $ 100,970 $ (65,497) $ (356,962)
Net Realized Gain (Loss) on Investments (5,021,624) (185,854) 2,873,016 2,049,891
Net Change in Unrealized Appreciation (Depreciation)
on Investments 2,775,315 1,580,591 (4,735,278) 4,958,442
- --------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,860,445) 1,495,707 (1,927,759) 6,651,371
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- --
==========================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 134,665,956 638,371,020
Advisor Class -- -- 38,217,186 116,765,742
A-Class** 61,384 -- 1,000 --
C-Class 31,025,357 13,513,589 8,454,962 29,035,589
H-Class 544,684,403 118,721,497 -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class** -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- (140,790,283) (630,825,978)
Advisor Class -- -- (48,687,803) (120,895,914)
A-Class** -- -- -- --
C-Class (37,501,378) (6,081,457) (9,556,414) (27,151,949)
H-Class (579,228,354) (44,171,731) -- --
==========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (40,958,588) 81,981,898 (17,695,396) 5,298,510
- --------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (42,819,033) 83,477,605 (19,623,155) 11,949,881
NET ASSETS--BEGINNING OF PERIOD 83,477,605 -- 29,963,465 18,013,584
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 40,658,572 $ 83,477,605 $ 10,340,310 $ 29,963,465
==========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 57
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
TECHNOLOGY TELECOMMUNICATIONS
FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- -------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (237,862) $ (747,504) $ 969 $ (46,317)
Net Realized Gain (Loss) on Investments (3,750,925) 11,535,322 (773,562) 69,736
Net Change in Unrealized Appreciation (Depreciation)
on Investments (2,851,920) 6,235,635 (1,759,138) 4,287,270
- -------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (6,840,707) 17,023,453 (2,531,731) 4,310,689
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- (26,174)
Advisor Class -- -- -- (11,281)
A-Class -- -- -- --
C-Class -- -- -- (4,468)
- -------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- (41,923)
=========================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 262,234,635 633,656,147 112,757,592 389,067,784
Advisor Class 24,184,593 92,267,160 9,662,808 32,832,108
A-Class* 5,762 -- 9,263 --
C-Class 37,853,514 252,095,654 9,782,840 41,389,566
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- 25,451
Advisor Class -- -- -- 11,021
A-Class* -- -- -- --
C-Class -- -- -- 3,392
COST OF SHARES REDEEMED
Investor Class (260,633,430) (631,881,342) (113,908,856) (386,492,605)
Advisor Class (24,093,030) (99,609,652) (11,656,435) (27,160,685)
A-Class* -- -- -- --
C-Class (37,809,880) (252,863,523) (11,825,280) (39,352,247)
=========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,742,164 (6,335,556) (5,178,068) 10,323,785
- -------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (5,098,543) 10,687,897 (7,709,799) 14,592,551
NET ASSETS--BEGINNING OF PERIOD 36,187,145 25,499,248 25,416,549 10,823,998
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 31,088,602 $ 36,187,145 $ 17,706,750 $ 25,416,549
=========================================================================================================================
TRANSPORTATION
FUND
- --------------------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
- --------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (125,984) $ (63,343)
Net Realized Gain (Loss) on Investments (4,003,183) 593,120
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,870,084 496,983
- --------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (2,259,083) 1,026,760
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
- --------------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
======================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 162,075,194 145,359,648
Advisor Class 49,694,103 61,633,336
A-Class* 31,942 --
C-Class 9,822,312 14,099,458
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class -- --
COST OF SHARES REDEEMED
Investor Class (147,067,492) (142,810,388)
Advisor Class (48,555,346) (61,674,390)
A-Class* -- --
C-Class (9,305,459) (13,937,471)
======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 16,695,254 2,670,193
- --------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 14,436,171 3,696,953
NET ASSETS--BEGINNING OF PERIOD 8,732,200 5,035,247
- --------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 23,168,371 $ 8,732,200
======================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
See Notes to Financial Statements.
58 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
UTILITIES
FUND
- --------------------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2004+ 2004
- --------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 297,830 $ 583,712
Net Realized Gain (Loss) on Investments 922,708 3,826,082
Net Change in Unrealized Appreciation (Depreciation)
on Investments (507,698) 1,455,557
- --------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 712,840 5,865,351
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (535,780)
Advisor Class -- (76,028)
A-Class -- --
C-Class -- (69,982)
- --------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (681,790)
======================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 152,421,455 362,548,312
Advisor Class 36,679,152 94,834,457
A-Class* 49,118 --
C-Class 14,293,028 46,841,485
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- 437,425
Advisor Class -- 75,949
A-Class* -- --
C-Class -- 65,998
COST OF SHARES REDEEMED
Investor Class (145,383,322) (356,854,893)
Advisor Class (31,142,377) (97,729,716)
A-Class* -- --
C-Class (15,511,493) (44,369,736)
======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 11,405,561 5,849,281
- --------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 12,118,401 11,032,842
NET ASSETS--BEGINNING OF PERIOD 24,189,086 13,156,244
- --------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 36,307,487 $ 24,189,086
======================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 59
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
BANKING FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ $ 10.25 $ .06 $ .23 $ .29 $ -- $ --
March 31, 2004 7.30 .14 2.89 3.03 (.08) --
March 31, 2003 8.63 .12 (1.24) (1.12) (.21) --
March 31, 2002 8.27 .12 .53 .65 (.29) --
March 31, 2001 7.31 .14 .82 .96 -- --
March 31, 2000 8.77 .07 (1.53) (1.46) -- --
BANKING FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 9.85 .03 .23 .26 -- --
March 31, 2004 7.06 .09 2.78 2.87 (.08) --
March 31, 2003 8.41 .07 (1.21) (1.14) (.21) --
March 31, 2002 8.13 .08 .49 .57 (.29) --
March 31, 2001 7.24 .13 .76 .89 -- --
March 31, 2000 8.74 .01 (1.51) (1.50) -- --
BANKING FUND A-CLASS
SEPTEMBER 30,2004*+++ 10.06 -- .05 .05 -- --
BANKING FUND C-CLASS
SEPTEMBER 30, 2004+++ 9.87 .02 .20 .22 -- --
March 31, 2004 7.12 .04 2.79 2.83 (.08) --
March 31, 2003 8.54 .02 (1.23) (1.21) (.21) --
March 31, 2002 8.27 .03 .53 .56 (.29) --
March 31, 2001 * 8.27 -- -- -- -- --
BASIC MATERIALS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 25.46 .05 2.21 2.26 -- --
March 31, 2004 17.22 .05 8.32 8.37 (.13) --
March 31, 2003 ++ 24.30 .12 (7.17) (7.05) (.03) --
March 31, 2002 ++ 21.03 .27 3.27 3.54 (.27) --
March 31, 2001 ++ 23.91 .18 (3.06) (2.88) -- --
March 31, 2000 ++ 23.25 .60 .06 .66 -- --
BASIC MATERIALS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 24.85 (.02) 2.16 2.14 -- --
March 31, 2004 16.89 .02 8.07 8.09 (.13) --
March 31, 2003 ++ 23.91 (.06) (6.93) (6.99) (.03) --
March 31, 2002 ++ 20.79 .15 3.24 3.39 (.27) --
March 31, 2001 ++ 23.79 .15 (3.15) (3.00) -- --
March 31, 2000 ++ 23.16 (.03) .66 .63 -- --
BASIC MATERIALS FUND A-CLASS
SEPTEMBER 30,2004*+++ 25.80 -- 1.20 1.20 -- --
BASIC MATERIALS FUND C-CLASS
SEPTEMBER 30, 2004+++ 24.68 (.07) 2.13 2.06 -- --
March 31, 2004 16.86 (.14) 8.09 7.95 (.13) --
March 31, 2003 ++ 24.03 (.06) (7.08) (7.14) (.03) --
March 31, 2002 *++ 23.13 (.03) 1.20 1.17 (.27) --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
BANKING FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ $ -- $ .29 $ 10.54 2.83%
March 31, 2004 (.08) 2.95 10.25 41.53%
March 31, 2003 (.21) (1.33) 7.30 (13.15)%
March 31, 2002 (.29) .36 8.63 8.30%
March 31, 2001 -- .96 8.27 13.13%
March 31, 2000 -- (1.46) 7.31 (16.65)%
BANKING FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- .26 10.11 2.64%
March 31, 2004 (.08) 2.79 9.85 40.67%
March 31, 2003 (.21) (1.35) 7.06 (13.73)%
March 31, 2002 (.29) .28 8.41 7.44%
March 31, 2001 -- .89 8.13 12.29%
March 31, 2000 -- (1.50) 7.24 (17.16)%
BANKING FUND A-CLASS
SEPTEMBER 30,2004*+++ -- .05 10.11 0.50%
BANKING FUND C-CLASS
SEPTEMBER 30, 2004+++ -- .22 10.09 2.23%
March 31, 2004 (.08) 2.75 9.87 39.76%
March 31, 2003 (.21) (1.42) 7.12 (14.35)%
March 31, 2002 (.29) .27 8.54 7.19%
March 31, 2001 * -- -- 8.27 0.00%
BASIC MATERIALS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ -- 2.26 27.72 8.88%
March 31, 2004 (.13) 8.24 25.46 48.70%
March 31, 2003 ++ (.03) (7.08) 17.22 (29.02)%
March 31, 2002 ++ (.27) 3.27 24.30 16.89%
March 31, 2001 ++ -- (2.88) 21.03 (12.05)%
March 31, 2000 ++ -- .66 23.91 2.84%
BASIC MATERIALS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- 2.14 26.99 8.61%
March 31, 2004 (.13) 7.96 24.85 47.99%
March 31, 2003 ++ (.03) (7.02) 16.89 (29.24)%
March 31, 2002 ++ (.27) 3.12 23.91 16.36%
March 31, 2001 ++ -- (3.00) 20.79 (12.61)%
March 31, 2000 ++ -- .63 23.79 2.72%
BASIC MATERIALS FUND A-CLASS
SEPTEMBER 30,2004*+++ -- 1.20 27.00 4.65%
BASIC MATERIALS FUND C-CLASS
SEPTEMBER 30, 2004+++ -- 2.06 26.74 8.35%
March 31, 2004 (.13) 7.82 24.68 47.25%
March 31, 2003 ++ (.03) (7.17) 16.86 (29.72)%
March 31, 2002 *++ (.27) .90 24.03 5.10%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ---------------------------------------------------------------------------------------------------------------------
BANKING FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ 1.36%** 1.36%** 1.17%** 823% $10,962
March 31, 2004 1.36% 1.36% 1.51% 1,435% 12,504
March 31, 2003 1.38% 1.38% 1.52% 1,495% 7,352
March 31, 2002 1.50% 1.50% 1.49% 1,292% 28,992
March 31, 2001 1.30% 1.29% 1.77% 1,394% 38,508
March 31, 2000 1.58% 1.57% 0.87% 3,829% 39,546
BANKING FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.86%** 1.86%** 0.60%** 823% 15,915
March 31, 2004 1.86% 1.86% 1.04% 1,435% 3,712
March 31, 2003 1.89% 1.89% 0.91% 1,495% 390
March 31, 2002 1.91% 1.91% 0.95% 1,292% 23,281
March 31, 2001 1.73% 1.73% 1.68% 1,394% 20,378
March 31, 2000 2.06% 2.05% 0.07% 3,829% 17,872
BANKING FUND A-CLASS
SEPTEMBER 30,2004*+++ 1.63%** 1.63%** (0.32)%** 823% 25
BANKING FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** 0.39%** 823% 1,607
March 31, 2004 2.37% 2.37% 0.41% 1,435% 1,829
March 31, 2003 2.38% 2.38% 0.23% 1,495% 76
March 31, 2002 2.40% 2.40% 0.42% 1,292% 15
March 31, 2001 * 0.00%**@ 0.00%**@ 0.00%** 1,394% 14
BASIC MATERIALS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.35%** 1.35%** 0.36%** 487% 36,044
March 31, 2004 1.38% 1.38% 0.20% 1,669% 29,749
March 31, 2003 ++ 1.39% 1.39% 0.53% 1,943% 3,360
March 31, 2002 ++ 1.41% 1.41% 1.12% 1,523% 45,716
March 31, 2001 ++ 1.52% 1.52% 0.79% 2,600% 16,593
March 31, 2000 ++ 1.54% 1.53% 2.21% 3,641% 16,851
BASIC MATERIALS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (0.14)%** 487% 9,729
March 31, 2004 1.87% 1.87% 0.09% 1,669% 13,483
March 31, 2003 ++ 1.89% 1.89% (0.23)% 1,943% 2,419
March 31, 2002 ++ 2.00% 2.00% 0.65% 1,523% 30,839
March 31, 2001 ++ 2.08% 2.07% 0.71% 2,600% 238
March 31, 2000 ++ 2.01% 2.00% (0.10)% 3,641% 5,082
BASIC MATERIALS FUND A-CLASS
SEPTEMBER 30,2004*+++ 1.61%** 1.61%** (0.16)%** 487% 55
BASIC MATERIALS FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (0.58)%** 487% 7,292
March 31, 2004 2.38% 2.38% (0.62)% 1,669% 5,311
March 31, 2003 ++ 2.39% 2.39% (0.23)% 1,943% 294
March 31, 2002 *++ 2.60%** 2.60%** (0.13)%** 1,523% 525
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001-- BANKING FUND
C-CLASS; MAY 3, 2001--BASIC MATERIALS FUND C-CLASS; SEPTEMBER 1, 2004 --
BANKING FUND A-CLASS AND BASIC MATERIALS FUND A-CLASS.
** 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 YEARS ENDED MARCH 31, 2000 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
+++ UNAUDITED
@ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE
DAY AND NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
See Notes to Financial Statements.
60 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ 20.56 $ (.12) $ (1.33) $ (1.45) $ -- $ --
March 31, 2004 13.75 (.24) 7.05 6.81 -- --
March 31, 2003 20.86 (.19) (6.92) (7.11) -- --
March 31, 2002 21.66 (.28) (.52) (.80) -- --
March 31, 2001 28.88 (.35) (6.87) (7.22) -- --
March 31, 2000 12.81 (.34) 16.45 16.11 -- (.04)
BIOTECHNOLOGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 19.86 (.16) (1.28) (1.44) -- --
March 31, 2004 13.35 (.32) 6.83 6.51 -- --
March 31, 2003 20.36 (.25) (6.76) (7.01) -- --
March 31, 2002 21.25 (.40) (.49) (.89) -- --
March 31, 2001 28.46 (.49) (6.72) (7.21) -- --
March 31, 2000 12.66 (.44) 16.28 15.84 -- (.04)
BIOTECHNOLOGY FUND A-CLASS
SEPTEMBER 30, 2004*+++ 17.89 (.02) .56 .54 -- --
BIOTECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2004+++ 19.92 (.21) (1.28) (1.49) -- --
March 31, 2004 13.47 (.43) 6.88 6.45 -- --
March 31, 2003 20.66 (.33) (6.86) (7.19) -- --
March 31, 2002 21.66 (.54) (.46) (1.00) -- --
March 31, 2001 * 21.66 -- -- -- -- --
CONSUMER PRODUCTS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 28.68 .08 (1.44) (1.36) -- --
March 31, 2004 20.85 .14 7.74 7.88 (.05) --
March 31, 2003 ++ 25.08 .12 (4.23) (4.11) (.12) --
March 31, 2002 ++ 21.54 .12 3.48 3.60 (.06) --
March 31, 2001 ++ 22.68 .21 (1.35) (1.14) -- --
March 31, 2000 ++ 29.13 .12 (5.52) (5.40) -- (1.05)
CONSUMER PRODUCTS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 27.99 -- (1.39) (1.39) -- --
March 31, 2004 20.46 (.04) 7.62 7.58 (.05) --
March 31, 2003 ++ 24.69 (.03) (4.08) (4.11) (.12) --
March 31, 2002 ++ 21.24 .03 3.48 3.51 (.06) --
March 31, 2001 ++ 22.50 -- (1.26) (1.26) -- --
March 31, 2000 ++ 29.10 (.24) (5.31) (5.55) -- (1.05)
CONSUMER PRODUCTS FUND A-CLASS
SEPTEMBER 30, 2004*+++ 27.42 (.82) -- (.82) -- --
CONSUMER PRODUCTS FUND C-CLASS
SEPTEMBER 30, 2004+++ 27.92 (.07) (1.38) (1.45) -- --
March 31, 2004 20.52 (.20) 7.65 7.45 (.05) --
March 31, 2003 ++ 24.93 (.09) (4.20) (4.29) (.12) --
March 31, 2002 *++ 21.81 (.03) 3.21 3.18 (.06) --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
BIOTECHNOLOGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ -- $ (1.45) $ 19.11 (7.05)%
March 31, 2004 -- 6.81 20.56 49.53%
March 31, 2003 -- (7.11) 13.75 (34.08)%
March 31, 2002 -- (.80) 20.86 (3.69)%
March 31, 2001 -- (7.22) 21.66 (25.00)%
March 31, 2000 (.04) 16.07 28.88 125.98%
BIOTECHNOLOGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (1.44) 18.42 (7.25)%
March 31, 2004 -- 6.51 19.86 48.76%
March 31, 2003 -- (7.01) 13.35 (34.43)%
March 31, 2002 -- (.89) 20.36 (4.19)%
March 31, 2001 -- (7.21) 21.25 (25.33)%
March 31, 2000 (.04) 15.80 28.46 125.34%
BIOTECHNOLOGY FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- .54 18.43 3.02%
BIOTECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (1.49) 18.43 (7.48)%
March 31, 2004 -- 6.45 19.92 47.88%
March 31, 2003 -- (7.19) 13.47 (34.80)%
March 31, 2002 -- (1.00) 20.66 (4.62)%
March 31, 2001 * -- -- 21.66 0.00%
CONSUMER PRODUCTS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ -- (1.36) 27.32 (4.74)%
March 31, 2004 (.05) 7.83 28.68 37.84%
March 31, 2003 ++ (.12) (4.23) 20.85 (16.38)%
March 31, 2002 ++ (.06) 3.54 25.08 16.71%
March 31, 2001 ++ -- (1.14) 21.54 (5.03)%
March 31, 2000 ++ (1.05) (6.45) 22.68 (19.20)%
CONSUMER PRODUCTS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (1.39) 26.60 (4.97)%
March 31, 2004 (.05) 7.53 27.99 37.10%
March 31, 2003 ++ (.12) (4.23) 20.46 (16.64)%
March 31, 2002 ++ (.06) 3.45 24.69 16.52%
March 31, 2001 ++ -- (1.26) 21.24 (5.60)%
March 31, 2000 ++ (1.05) (6.60) 22.50 (19.76)%
CONSUMER PRODUCTS FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- (.82) 26.60 (2.99)%
CONSUMER PRODUCTS FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (1.45) 26.47 (5.19)%
March 31, 2004 (.05) 7.40 27.92 36.36%
March 31, 2003 ++ (.12) (4.41) 20.52 (17.20)%
March 31, 2002 *++ (.06) 3.12 24.93 14.57%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.35%** 1.35%** (1.26)%** 262% $113,659
March 31, 2004 1.35% 1.35% (1.31)% 548% 135,619
March 31, 2003 1.38% 1.38% (1.31)% 477% 111,003
March 31, 2002 1.23% 1.23% (1.20)% 390% 218,263
March 31, 2001 1.24% 1.23% (1.17)% 305% 283,407
March 31, 2000 1.42% 1.41% (1.29)% 699% 456,303
BIOTECHNOLOGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (1.76)%** 262% 21,125
March 31, 2004 1.84% 1.84% (1.79)% 548% 12,708
March 31, 2003 1.88% 1.88% (1.82)% 477% 24,280
March 31, 2002 1.72% 1.72% (1.69)% 390% 20,931
March 31, 2001 1.74% 1.73% (1.68)% 305% 25,739
March 31, 2000 1.93% 1.92% (1.96)% 699% 45,757
BIOTECHNOLOGY FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.58%** 1.58%** (1.60)%** 262% 10
BIOTECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (2.24)%** 262% 4,513
March 31, 2004 2.36% 2.36% (2.32)% 548% 3,567
March 31, 2003 2.38% 2.38% (2.30)% 477% 1,667
March 31, 2002 2.38% 2.38% (2.36)% 390% 967
March 31, 2001 * 0.00%**@ 0.00%**@ 0.00%** 305% 3
CONSUMER PRODUCTS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.35%** 1.35%** 0.58%** 512% 7,955
March 31, 2004 1.36% 1.36% 0.56% 914% 23,560
March 31, 2003 ++ 1.39% 1.39% 0.53% 1,205% 1,640
March 31, 2002 ++ 1.56% 1.56% 0.53% 890% 20,083
March 31, 2001 ++ 1.23% 1.22% 0.94% 1,907% 8,503
March 31, 2000 ++ 1.37% 1.36% 0.49% 5,466% 9,181
CONSUMER PRODUCTS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.85%** 1.85%** 0.02%** 512% 12,454
March 31, 2004 1.86% 1.86% (0.18)% 914% 13,357
March 31, 2003 ++ 1.89% 1.89% (0.09)% 1,205% 3,120
March 31, 2002 ++ 2.02% 2.02% 0.18% 890% 33,201
March 31, 2001 ++ 1.85% 1.84% 0.02% 1,907% 18,104
March 31, 2000 ++ 2.13% 2.13% (1.01)% 5,466% 3,135
CONSUMER PRODUCTS FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.60%** 1.60%** (0.25)%** 512% 22
CONSUMER PRODUCTS FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (0.50)%** 512% 2,036
March 31, 2004 2.37% 2.37% (0.79)% 914% 4,259
March 31, 2003 ++ 2.39% 2.39% (0.35)% 1,205% 196
March 31, 2002 *++ 2.57%** 2.57%** (0.19)%** 890% 501
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001 -- BIOTECHNOLOGY FUND
C-CLASS; JULY 24, 2001 -- CONSUMER PRODUCTS FUND C-CLASS; SEPTEMBER 1,
2004 -- BIOTECHNOLOGY FUND A-CLASS AND CONSUMER PRODUCTS FUND A-CLASS.
** 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 YEARS ENDED MARCH 31, 2000 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
+++ UNAUDITED
@ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE
DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 61
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ $ 13.43 $ (.04) $ (3.64) $ (3.68) $ -- $ --
March 31, 2004 8.08 (.15) 5.50 5.35 -- --
March 31, 2003 16.96 (.12) (8.76) (8.88) -- --
March 31, 2002 16.54 (.18) .60 .42 -- --
March 31, 2001 40.10 (.36) (23.02) (23.38) -- (.18)
March 31, 2000 14.02 (.30) 26.38 26.08 -- --
ELECTRONICS FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 13.02 (.07) (3.52) (3.59) -- --
March 31, 2004 7.87 (.21) 5.36 5.15 -- --
March 31, 2003 16.62 (.16) (8.59) (8.75) -- --
March 31, 2002 16.28 (.26) .60 .34 -- --
March 31, 2001 39.66 (.58) (22.62) (23.20) -- (.18)
March 31, 2000 13.96 (.35) 26.05 25.70 -- --
ELECTRONICS FUND A-CLASS
SEPTEMBER 30, 2004*++ 9.22 (.01) .22 .21 -- --
ELECTRONICS FUND C-CLASS
SEPTEMBER 30, 2004++ 13.00 (.10) (3.50) (3.60) -- --
March 31, 2004 7.91 (.27) 5.36 5.09 -- --
March 31, 2003 16.82 (.22) (8.69) (8.91) -- --
March 31, 2002 16.54 (.37) .65 .28 -- --
March 31, 2001 * 18.72 (.01) (2.17) (2.18) -- --
ENERGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 11.94 .04 2.15 2.19 -- --
March 31, 2004 8.80 -- 3.17 3.17 (.03) --
March 31, 2003 11.26 .02 (2.47) (2.45) (.01) --
March 31, 2002 11.43 .12 (.19) (.07) (.10) --
March 31, 2001 10.87 (.08) .64 .56 -- --
March 31, 2000 8.99 .08 1.80 1.88 -- --
ENERGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 11.68 -- 2.11 2.11 -- --
March 31, 2004 8.63 (.03) 3.11 3.08 (.03) --
March 31, 2003 11.09 -- (2.45) (2.45) (.01) --
March 31, 2002 11.33 .05 (.19) (.14) (.10) --
March 31, 2001 10.84 (.03) .52 .49 -- --
March 31, 2000 9.01 .15 1.68 1.83 -- --
ENERGY FUND A-CLASS
SEPTEMBER 30, 2004*++ 12.79 -- 1.00 1.00 -- --
ENERGY FUND C-CLASS
SEPTEMBER 30, 2004++ 11.60 (.03) 2.09 2.06 -- --
March 31, 2004 8.63 (.12) 3.12 3.00 (.03) --
March 31, 2003 11.14 (.07) (2.43) (2.50) (.01) --
March 31, 2002 * 11.87 (.09) (.54) (.63) (.10) --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
ELECTRONICS FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ $ -- $ (3.68) $ 9.75 (27.40)%
March 31, 2004 -- 5.35 13.43 66.21%
March 31, 2003 -- (8.88) 8.08 (52.36)%
March 31, 2002 -- .42 16.96 2.54%
March 31, 2001 (.18) (23.56) 16.54 (58.48)%
March 31, 2000 -- 26.08 40.10 186.02%
ELECTRONICS FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ -- (3.59) 9.43 (27.57)%
March 31, 2004 -- 5.15 13.02 65.44%
March 31, 2003 -- (8.75) 7.87 (52.65)%
March 31, 2002 -- .34 16.62 2.09%
March 31, 2001 (.18) (23.38) 16.28 (58.68)%
March 31, 2000 -- 25.70 39.66 184.10%
ELECTRONICS FUND A-CLASS
SEPTEMBER 30, 2004*++ -- .21 9.43 2.28%
ELECTRONICS FUND C-CLASS
SEPTEMBER 30, 2004++ -- (3.60) 9.40 (27.69)%
March 31, 2004 -- 5.09 13.00 64.35%
March 31, 2003 -- (8.91) 7.91 (52.97)%
March 31, 2002 -- .28 16.82 1.69%
March 31, 2001 * -- (2.18) 16.54 (11.65)%
ENERGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ -- 2.19 14.13 18.34%
March 31, 2004 (.03) 3.14 11.94 36.12%
March 31, 2003 (.01) (2.46) 8.80 (21.79)%
March 31, 2002 (.10) (.17) 11.26 (0.52)%
March 31, 2001 -- .56 11.43 5.15%
March 31, 2000 -- 1.88 10.87 20.91%
ENERGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ -- 2.11 13.79 18.07%
March 31, 2004 (.03) 3.05 11.68 35.79%
March 31, 2003 (.01) (2.46) 8.63 (22.13)%
March 31, 2002 (.10) (.24) 11.09 (1.14)%
March 31, 2001 -- .49 11.33 4.52%
March 31, 2000 -- 1.83 10.84 20.31%
ENERGY FUND A-CLASS
SEPTEMBER 30, 2004*++ -- 1.00 13.79 7.82%
ENERGY FUND C-CLASS
SEPTEMBER 30, 2004++ -- 2.06 13.66 17.76%
March 31, 2004 (.03) 2.97 11.60 34.86%
March 31, 2003 (.01) (2.51) 8.63 (22.48)%
March 31, 2002 * (.10) (.73) 11.14 (5.22)%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------
ELECTRONICS FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 1.35%** 1.35%** (0.67)%** 662% $27,667
March 31, 2004 1.36% 1.36% (1.20)% 1,359% 46,200
March 31, 2003 1.39% 1.39% (1.20)% 2,413% 31,655
March 31, 2002 1.29% 1.29% (1.08)% 1,279% 96,671
March 31, 2001 1.36% 1.35% (1.09)% 705% 70,131
March 31, 2000 1.29% 1.28% (1.14)% 1,162% 274,554
ELECTRONICS FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 1.85%** 1.85%** (1.27)%** 662% 2,982
March 31, 2004 1.85% 1.85% (1.70)% 1,359% 3,341
March 31, 2003 1.87% 1.87% (1.72)% 2,413% 7,389
March 31, 2002 1.75% 1.75% (1.50)% 1,279% 9,528
March 31, 2001 1.87% 1.86% (1.74)% 705% 7,325
March 31, 2000 1.76% 1.75% (1.51)% 1,162% 25,034
ELECTRONICS FUND A-CLASS
SEPTEMBER 30, 2004*++ 1.73%** 1.73%** (1.72)%** 662% 1
ELECTRONICS FUND C-CLASS
SEPTEMBER 30, 2004++ 2.35%** 2.35%** (1.80)%** 662% 1,299
March 31, 2004 2.36% 2.36% (2.20)% 1,359% 1,111
March 31, 2003 2.39% 2.39% (2.21)% 2,413% 940
March 31, 2002 2.49% 2.49% (2.27)% 1,279% 388
March 31, 2001 * 2.11%** 1.82%** (1.76)%** 705% 2
ENERGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 1.35%** 1.35%** 0.56%** 301% 123,177
March 31, 2004 1.36% 1.36% 0.04% 913% 61,800
March 31, 2003 1.39% 1.39% 0.24% 1,362% 4,703
March 31, 2002 1.32% 1.32% 1.06% 1,502% 31,769
March 31, 2001 1.64% 1.63% (0.70)% 1,707% 15,715
March 31, 2000 1.58% 1.57% 0.83% 2,854% 13,980
ENERGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 1.84%** 1.84%** 0.06%** 301% 16,762
March 31, 2004 1.92% 1.92% (0.25)% 913% 4,895
March 31, 2003 1.88% 1.88% (0.03)% 1,362% 7,039
March 31, 2002 1.80% 1.80% 0.42% 1,502% 9,621
March 31, 2001 2.11% 2.11% (0.26)% 1,707% 4,269
March 31, 2000 2.06% 2.05% 1.45% 2,854% 4,432
ENERGY FUND A-CLASS
SEPTEMBER 30, 2004*++ 1.57%** 1.57%** (0.31)%** 301% 48
ENERGY FUND C-CLASS
SEPTEMBER 30, 2004++ 2.35%** 2.35%** (0.43)%** 301% 14,273
March 31, 2004 2.36% 2.36% (1.08)% 913% 6,571
March 31, 2003 2.38% 2.38% (0.81)% 1,362% 1,471
March 31, 2002 * 2.51%** 2.51%** (0.92)%** 1,502% 392
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001 -- ELECTRONICS FUND
C-CLASS; APRIL 19, 2001 -- ENERGY FUND C-CLASS; SEPTEMBER 1, 2004 --
ELECTRONICS FUND A-CLASS AND ENERGY FUND A-CLASS.
** 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.
++ UNAUDITED
See Notes to Financial Statements.
62 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ 21.74 $ (.11) $ 4.16 $ 4.05 $ -- $ --
March 31, 2004 17.37 (.18) 4.55 4.37 -- --
March 31, 2003 ++ 22.47 (.15) (4.95) (5.10) -- --
March 31, 2002 ++ 27.30 (.18) (4.65) (4.83) -- --
March 31, 2001 ++ 27.93 (.12) (.51) (.63) -- --
March 31, 2000 ++ 18.06 (.18) 10.05 9.87 -- --
ENERGY SERVICES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 21.18 (.16) 4.05 3.89 -- --
March 31, 2004 17.01 (.27) 4.44 4.17 -- --
March 31, 2003 ++ 22.08 (.24) (4.83) (5.07) -- --
March 31, 2002 ++ 26.97 (.27) (4.62) (4.89) -- --
March 31, 2001 ++ 27.69 (.33) (.39) (.72) -- --
March 31, 2000 ++ 18.03 (.33) 9.99 9.66 -- --
ENERGY SERVICES FUND A-CLASS
SEPTEMBER 30, 2004*+++ 23.18 (.03) 1.93 1.90 -- --
ENERGY SERVICES FUND C-CLASS
SEPTEMBER 30, 2004+++ 21.12 (.21) 4.03 3.82 -- --
March 31, 2004 17.04 (.35) 4.43 4.08 -- --
March 31, 2003 ++ 22.23 (.30) (4.89) (5.19) -- --
March 31, 2002 ++ 27.30 (.30) (4.77) (5.07) -- --
March 31,2001 *++ 27.30 -- -- -- -- --
FINANCIAL SERVICES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 11.09 .04 (.03) .01 -- --
March 31, 2004 7.66 .09 3.38 3.47 (.04) --
March 31, 2003 10.23 .07 (2.62) (2.55) (.02) --
March 31, 2002 10.00 .04 .29 .33 (.10) --
March 31, 2001 9.48 .06 .46 .52 -- --
March 31, 2000 9.99 (.01) (.49) (.50) -- (.01)
FINANCIAL SERVICES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 10.89 .01 (.04) (.03) -- --
March 31, 2004 7.57 .04 3.32 3.36 (.04) --
March 31, 2003 10.08 .03 (2.52) (2.49) (.02) --
March 31, 2002 9.89 (.01) .30 .29 (.10) --
March 31, 2001 9.42 .01 .46 .47 -- --
March 31, 2000 9.95 (.05) (.47) (.52) -- (.01)
FINANCIAL SERVICES FUND A-CLASS
SEPTEMBER 30, 2004*+++ 10.75 .01 .11 .12 -- --
FINANCIAL SERVICES FUND C-CLASS
SEPTEMBER 30, 2004+++ 10.84 (.02) (.04) (.06) -- --
March 31, 2004 7.57 (.02) 3.33 3.31 (.04) --
March 31, 2003 10.14 (.02) (2.53) (2.55) (.02) --
March 31, 2002 * 10.46 (.05) (.17) (.22) (.10) --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ -- $ 4.05 $ 25.79 18.63%
March 31, 2004 -- 4.37 21.74 25.16%
March 31, 2003 ++ -- (5.10) 17.37 (22.70)%
March 31, 2002 ++ -- (4.83) 22.47 (17.69)%
March 31, 2001 ++ -- (.63) 27.30 (2.26)%
March 31, 2000 ++ -- 9.87 27.93 54.65%
ENERGY SERVICES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- 3.89 25.07 18.37%
March 31, 2004 -- 4.17 21.18 24.51%
March 31, 2003 ++ -- (5.07) 17.01 (22.96)%
March 31, 2002 ++ -- (4.89) 22.08 (18.13)%
March 31, 2001 ++ -- (.72) 26.97 (2.60)%
March 31, 2000 ++ -- 9.66 27.69 53.58%
ENERGY SERVICES FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- 1.90 25.08 8.20%
ENERGY SERVICES FUND C-CLASS
SEPTEMBER 30, 2004+++ -- 3.82 24.94 18.09%
March 31, 2004 -- 4.08 21.12 23.94%
March 31, 2003 ++ -- (5.19) 17.04 (23.35)%
March 31, 2002 ++ -- (5.07) 22.23 (18.57)%
March 31,2001 *++ -- -- 27.30 0.00%
FINANCIAL SERVICES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ -- .01 11.10 0.09%
March 31, 2004 (.04) 3.43 11.09 45.36%
March 31, 2003 (.02) (2.57) 7.66 (24.97)%
March 31, 2002 (.10) .23 10.23 3.39%
March 31, 2001 -- .52 10.00 5.49%
March 31, 2000 (.01) (.51) 9.48 (4.97)%
FINANCIAL SERVICES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (.03) 10.86 (0.28)%
March 31, 2004 (.04) 3.32 10.89 44.45%
March 31, 2003 (.02) (2.51) 7.57 (24.74)%
March 31, 2002 (.10) .19 10.08 3.02%
March 31, 2001 -- .47 9.89 4.99%
March 31, 2000 (.01) (.53) 9.42 (5.19)%
FINANCIAL SERVICES FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- .12 10.87 1.12%
FINANCIAL SERVICES FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (.06) 10.78 (0.55)%
March 31, 2004 (.04) 3.27 10.84 43.78%
March 31, 2003 (.02) (2.57) 7.57 (25.19)%
March 31, 2002 * (.10) (.32) 10.14 (2.02)%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.35%** 1.35%** (0.95)%** 303% $62,627
March 31, 2004 1.37% 1.37% (0.96)% 1,009% 47,344
March 31, 2003 ++ 1.39% 1.39% (0.72)% 971% 15,144
March 31, 2002 ++ 1.54% 1.54% (0.74)% 949% 51,983
March 31, 2001 ++ 1.26% 1.25% (0.41)% 944% 50,159
March 31, 2000 ++ 1.58% 1.57% (0.81)% 1,794% 54,609
ENERGY SERVICES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (1.41)%** 303% 19,634
March 31, 2004 1.87% 1.87% (1.39)% 1,009% 25,302
March 31, 2003 ++ 1.88% 1.88% (1.26)% 971% 1,961
March 31, 2002 ++ 1.97% 1.97% (1.21)% 949% 22,051
March 31, 2001 ++ 1.74% 1.73% (1.17)% 944% 2,879
March 31, 2000 ++ 2.20% 2.20% (1.49)% 1,794% 34,524
ENERGY SERVICES FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.62%** 1.62%** (1.58)%** 303% 9
ENERGY SERVICES FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (1.93)%** 303% 6,937
March 31, 2004 2.37% 2.37% (1.86)% 1,009% 2,833
March 31, 2003 ++ 2.39% 2.39% (1.60)% 971% 651
March 31, 2002 ++ 2.57% 2.57% (1.60)% 949% 697
March 31,2001 *++ 0.00%**@ 0.00%**@ 0.00%** 944% 3
FINANCIAL SERVICES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.35%** 1.35%** 0.71%** 440% 9,503
March 31, 2004 1.36% 1.36% 0.94% 1,200% 34,423
March 31, 2003 1.38% 1.38% 0.82% 2,336% 6,671
March 31, 2002 1.51% 1.51% 0.43% 1,110% 25,147
March 31, 2001 1.24% 1.23% 0.58% 1,271% 35,190
March 31, 2000 1.72% 1.71% (0.15)% 2,770% 145,449
FINANCIAL SERVICES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.83%** 1.83%** 0.23%** 440% 22,633
March 31, 2004 1.86% 1.86% 0.39% 1,200% 40,885
March 31, 2003 1.88% 1.88% 0.35% 2,336% 15,074
March 31, 2002 2.02% 2.02% (0.08)% 1,110% 40,968
March 31, 2001 1.74% 1.73% 0.05% 1,271% 30,627
March 31, 2000 2.29% 2.28% (0.64)% 2,770% 129,760
FINANCIAL SERVICES FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.60%** 1.60%** 1.09%** 440% 22
FINANCIAL SERVICES FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (0.37)%** 440% 2,489
March 31, 2004 2.37% 2.37% (0.23)% 1,200% 2,242
March 31, 2003 2.37% 2.37% (0.19)% 2,336% 222
March 31, 2002 * 2.52%** 2.52%** (0.50)%** 1,110% 526
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001 -- ENERGY SERVICES
FUND C-CLASS; APRIL 19, 2001 -- FINANCIAL SERVICES FUND C-CLASS; SEPTEMBER
1, 2004 -- ENERGY SERVICES FUND A-CLASS AND FINANCIAL SERVICES FUND
A-CLASS.
** 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 YEAR ENDED MARCH 31, 2000 THROUGH MARCH 31, 2003
HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL
21, 2003.
+++ UNAUDITED
@ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE
DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 63
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ 12.50 $ (.03) $ (.42) $ (.45) $ -- $ --
March 31, 2004 9.21 (.07) 3.36 3.29 -- --
March 31, 2003 11.36 (.02) (2.13) (2.15) -- --
March 31, 2002 11.25 (.04) .15 .11 -- --
March 31, 2001 10.25 (.05) 1.05 1.00 -- --
March 31, 2000 11.45 (.04) (1.15) (1.19) -- (.01)
HEALTH CARE FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 12.11 (.05) (.41) (.46) -- --
March 31, 2004 8.97 (.12) 3.26 3.14 -- --
March 31, 2003 11.11 (.06) (2.08) (2.14) -- --
March 31, 2002 11.06 (.09) .14 .05 -- --
March 31, 2001 10.12 (.11) 1.05 .94 -- --
March 31, 2000 11.37 (.15) (1.09) (1.24) -- (.01)
HEALTH CARE FUND A-CLASS
SEPTEMBER 30, 2004*+++ 11.65 (.01) .02 .01 -- --
HEALTH CARE FUND C-CLASS
SEPTEMBER 30, 2004+++ 12.11 (.09) (.39) (.48) -- --
March 31, 2004 9.03 (.18) 3.26 3.08 -- --
March 31, 2003 11.25 (.12) (2.10) (2.22) -- --
March 31, 2002 11.25 (.18) .18 -- -- --
March 31, 2001 * 11.25 -- -- -- -- --
INTERNET FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 35.66 (.22) (2.48) (2.70) -- --
March 31, 2004 20.43 (.41) 15.64 15.23 -- --
March 31, 2003 30.55 (.29) (9.83) (10.12) -- --
March 31, 2002 41.80 (.31) (10.94) (11.25) -- --
March 31, 2001 *++ 200.00 (1.60) (156.60) (158.20) -- --
INTERNET FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 34.85 (.31) (2.40) (2.71) -- --
March 31, 2004 20.05 (.54) 15.34 14.80 -- --
March 31, 2003 30.18 (.40) (9.73) (10.13) -- --
March 31, 2002 41.60 (.64) (10.78) (11.42) -- --
March 31, 2001 *++ 200.00 (2.80) (155.60) (158.40) -- --
INTERNET FUND A-CLASS
SEPTEMBER 30, 2004*+++ 30.65 (.03) 1.53 1.50 -- --
INTERNET FUND C-CLASS
SEPTEMBER 30, 2004+++ 34.64 (.37) (2.40) (2.77) -- --
March 31, 2004 20.04 (.72) 15.32 14.60 -- --
March 31, 2003 30.28 (.50) (9.74) (10.24) -- --
March 31, 2002 * 53.40 (.78) (22.34) (23.12) -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
HEALTH CARE FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ -- $ (.45) $ 12.05 (3.60)%
March 31, 2004 -- 3.29 12.50 35.72%
March 31, 2003 -- (2.15) 9.21 (18.93)%
March 31, 2002 -- .11 11.36 0.98%
March 31, 2001 -- 1.00 11.25 9.76%
March 31, 2000 (.01) (1.20) 10.25 (10.44)%
HEALTH CARE FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (.46) 11.65 (3.80)%
March 31, 2004 -- 3.14 12.11 35.01%
March 31, 2003 -- (2.14) 8.97 (19.26)%
March 31, 2002 -- .05 11.11 0.45%
March 31, 2001 -- .94 11.06 9.29%
March 31, 2000 (.01) (1.25) 10.12 (10.95)%
HEALTH CARE FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- .01 11.66 0.09%
HEALTH CARE FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (.48) 11.63 (3.96)%
March 31, 2004 -- 3.08 12.11 34.11%
March 31, 2003 -- (2.22) 9.03 (19.73)%
March 31, 2002 -- -- 11.25 0.00%
March 31, 2001 * -- -- 11.25 0.00%
INTERNET FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ -- (2.70) 32.96 (7.57)%
March 31, 2004 -- 15.23 35.66 74.55%
March 31, 2003 -- (10.12) 20.43 (33.13)%
March 31, 2002 -- (11.25) 30.55 (26.91)%
March 31, 2001 *++ -- (158.20) 41.80 (79.10)%
INTERNET FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (2.71) 32.14 (7.78)%
March 31, 2004 -- 14.80 34.85 73.82%
March 31, 2003 -- (10.13) 20.05 (33.57)%
March 31, 2002 -- (11.42) 30.18 (27.45)%
March 31, 2001 *++ -- (158.40) 41.60 (79.20)%
INTERNET FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- 1.50 32.15 4.89%
INTERNET FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (2.77) 31.87 (8.00)%
March 31, 2004 -- 14.60 34.64 72.85%
March 31, 2003 -- (10.24) 20.04 (33.82)%
March 31, 2002 * -- (23.12) 30.28 (43.30)%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------
HEALTH CARE FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.35%** 1.35%** (0.45)%** 292% $25,542
March 31, 2004 1.36% 1.36% (0.56)% 1,204% 19,801
March 31, 2003 1.38% 1.38% (0.25)% 1,395% 13,400
March 31, 2002 1.37% 1.37% (0.36)% 936% 20,567
March 31, 2001 1.55% 1.54% (0.39)% 1,399% 42,495
March 31, 2000 1.41% 1.41% (0.36)% 4,850% 30,729
HEALTH CARE FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (0.87)%** 292% 22,905
March 31, 2004 1.85% 1.85% (1.05)% 1,204% 27,102
March 31, 2003 1.88% 1.88% (0.66)% 1,395% 23,127
March 31, 2002 1.85% 1.85% (0.81)% 936% 29,504
March 31, 2001 2.05% 2.04% (0.98)% 1,399% 24,444
March 31, 2000 2.16% 2.15% (1.51)% 4,850% 1,741
HEALTH CARE FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.70%** 1.70%** (1.35)%** 292% 21
HEALTH CARE FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (1.42)%** 292% 3,486
March 31, 2004 2.37% 2.37% (1.60)% 1,204% 2,865
March 31, 2003 2.37% 2.37% (1.30)% 1,395% 421
March 31, 2002 2.54% 2.54% (1.59)% 936% 1,085
March 31, 2001 * 0.00%**@ 0.00%**@ 0.00%** 1,399% 3
INTERNET FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.37%** 1.37%** (1.29)%** 988% 6,795
March 31, 2004 1.36% 1.36% (1.31)% 1,340% 15,292
March 31, 2003 1.38% 1.38% (1.34)% 2,052% 3,335
March 31, 2002 1.21% 1.21% (1.15)% 2,186% 3,124
March 31, 2001 *++ 1.61%** 1.61%** (1.43)%** 1,937% 1,625
INTERNET FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.67%** 1.67%** (1.60)%** 988% 3,435
March 31, 2004 1.86% 1.86% (1.81)% 1,340% 12,090
March 31, 2003 1.82% 1.82% (1.79)% 2,052% 717
March 31, 2002 1.74% 1.74% (1.68)% 2,186% 396
March 31, 2001 *++ 2.09%** 2.08%** (2.00)%** 1,937% 201
INTERNET FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.70%** 1.70%** (1.68)%** 988% 11
INTERNET FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.38%** 2.38%** (2.28)%** 988% 2,018
March 31, 2004 2.36% 2.36% (2.31)% 1,340% 1,556
March 31, 2003 2.37% 2.37% (2.34)% 2,052% 234
March 31, 2002 * 2.36%** 2.36%** (2.33)%** 2,186% 149
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 2000 -- INTERNET FUND
INVESTOR CLASS AND ADVISOR CLASS; MARCH 30, 2001 -- HEALTH CARE FUND
C-CLASS; APRIL 19, 2001 -- INTERNET FUND C-CLASS; SEPTEMBER 1, 2004 --
HEALTH CARE FUND A-CLASS AND INTERNET FUND A-CLASS.
** 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 YEAR ENDED MARCH 31, 2001 HAVE BEEN RESTATED TO
REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001.
+++ UNAUDITED
@ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE
DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
See Notes to Financial Statements.
64 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
LEISURE FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ 27.66 $ (.11) $ (.97) $ (1.08) $ -- $ --
March 31, 2004 17.88 (.06) 9.84 9.78 -- --
March 31, 2003 ++ 24.00 (.15) (5.97) (6.12) -- --
March 31, 2002 ++ 25.56 (.33) (1.23) (1.56) -- --
March 31, 2001 ++ 33.30 (.36) (7.38) (7.74) -- --
March 31, 2000 ++ 33.63 .09 (.12) (.03) -- (.30)
LEISURE FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 26.74 (.17) (.94) (1.11) -- --
March 31, 2004 17.37 (.23) 9.60 9.37 -- --
March 31, 2003 ++ 23.34 (.39) (5.58) (5.97) -- --
March 31, 2002 ++ 24.93 (.51) (1.08) (1.59) -- --
March 31, 2001 ++ 32.82 (.51) (7.38) (7.89) -- --
March 31, 2000 ++ 33.48 (.42) .06 (.36) -- (.30)
LEISURE FUND A-CLASS
SEPTEMBER 30, 2004*+++ 24.59 (.03) 1.07 1.04 -- --
LEISURE FUND C-CLASS
SEPTEMBER 30, 2004+++ 26.93 (.21) (.97) (1.18) -- --
March 31, 2004 17.61 (.38) 9.70 9.32 -- --
March 31, 2003 ++ 23.79 (.36) (5.82) (6.18) -- --
March 31, 2002 *++ 29.01 (.45) (4.77) (5.22) -- --
PRECIOUS METALS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 44.32 (.09) (3.03) (3.12) -- --
March 31, 2004 26.78 (.12) 17.67 17.55 (.01) --
March 31, 2003 27.90 .03 (1.15) (1.12) -- --
March 31, 2002 17.73 .01 10.30 10.31 (.14) --
March 31, 2001 18.80 .05 (1.12) (1.07) -- --
March 31, 2000 ++ 20.95 (.10) (2.05) (2.15) -- --
PRECIOUS METALS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 44.17 (.19) (3.00) (3.19) -- --
March 31,2004 * 31.68 (.18) 12.68 12.50 (.01) --
PRECIOUS METALS FUND A-CLASS
SEPTEMBER 30, 2004*+++ 37.26 (.04) 3.76 3.72 -- --
PRECIOUS METALS FUND C-CLASS
SEPTEMBER 30, 2004+++ 43.16 (.26) (2.98) (3.24) -- --
March 31, 2004 26.35 (.51) 17.33 16.82 (.01) --
March 31, 2003 27.72 (.27) (1.10) (1.37) -- --
March 31, 2002 * 20.41 (.26) 7.71 7.45 (.14) --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- -----------------------------------------------------------------------------------------------
LEISURE FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ -- $ (1.08) $ 26.58 (3.90)%
March 31, 2004 -- 9.78 27.66 54.70%
March 31, 2003 ++ -- (6.12) 17.88 (25.50)%
March 31, 2002 ++ -- (1.56) 24.00 (6.10)%
March 31, 2001 ++ -- (7.74) 25.56 (23.24)%
March 31, 2000 ++ (.30) (.33) 33.30 (0.07)%
LEISURE FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (1.11) 25.63 (4.15)%
March 31, 2004 -- 9.37 26.74 53.94%
March 31, 2003 ++ -- (5.97) 17.37 (25.58)%
March 31, 2002 ++ -- (1.59) 23.34 (6.38)%
March 31, 2001 ++ -- (7.89) 24.93 (24.04)%
March 31, 2000 ++ (.30) (.66) 32.82 (1.06)%
LEISURE FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- 1.04 25.63 4.23%
LEISURE FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (1.18) 25.75 (4.38)%
March 31, 2004 -- 9.32 26.93 52.92%
March 31, 2003 ++ -- (6.18) 17.61 (25.98)%
March 31, 2002 *++ -- (5.22) 23.79 (17.99)%
PRECIOUS METALS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ -- (3.12) 41.20 (7.04)%
March 31, 2004 (.01) 17.54 44.32 65.53%
March 31, 2003 -- (1.12) 26.78 (4.01)%
March 31, 2002 (.14) 10.17 27.90 58.44%
March 31, 2001 -- (1.07) 17.73 (5.69)%
March 31, 2000 ++ -- (2.15) 18.80 (10.26)%
PRECIOUS METALS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- (3.19) 40.98 (7.22)%
March 31,2004 * (.01) 12.49 44.17 39.46%
PRECIOUS METALS FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- 3.72 40.98 9.98%
PRECIOUS METALS FUND C-CLASS
SEPTEMBER 30, 2004+++ -- (3.24) 39.92 (7.51)%
March 31, 2004 (.01) 16.81 43.16 63.83%
March 31, 2003 -- (1.37) 26.35 (4.94)%
March 31, 2002 * (.14) 7.31 27.72 36.75%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------
LEISURE FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.34%** 1.34%** (0.76)%** 464% $14,058
March 31, 2004 1.36% 1.36% (0.31)% 1,870% 25,030
March 31, 2003 ++ 1.38% 1.38% (0.65)% 3,179% 2,325
March 31, 2002 ++ 1.57% 1.57% (1.27)% 2,609% 11,443
March 31, 2001 ++ 1.55% 1.55% (1.18)% 2,756% 1,277
March 31, 2000 ++ 1.58% 1.58% 0.30% 5,734% 5,563
LEISURE FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (1.30)%** 464% 21,029
March 31, 2004 1.86% 1.86% (1.06)% 1,870% 39,789
March 31, 2003 ++ 1.90% 1.90% (1.68)% 3,179% 3,592
March 31, 2002 ++ 2.26% 2.26% (2.05)% 2,609% 9,324
March 31, 2001 ++ 2.08% 2.07% (1.77)% 2,756% 18,299
March 31, 2000 ++ 2.08% 2.08% (1.32)% 5,734% 18,559
LEISURE FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.74%** 1.74%** (1.45)%** 464% 1
LEISURE FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (1.72)%** 464% 2,699
March 31, 2004 2.37% 2.37% (1.59)% 1,870% 2,165
March 31, 2003 ++ 2.39% 2.39% (1.70)% 3,179% 36
March 31, 2002 *++ 2.53%** 2.53%** (2.14)%** 2,609% 87
PRECIOUS METALS FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.25%** 1.25%** (0.51)%** 174% 224,091
March 31, 2004 1.26% 1.26% (0.32)% 550% 236,961
March 31, 2003 1.27% 1.27% 0.09% 744% 75,185
March 31, 2002 1.39% 1.39% 0.07% 839% 59,625
March 31, 2001 1.18% 1.17% 0.30% 822% 25,096
March 31, 2000 ++ 1.23% 1.23% (0.34)% 1,004% 37,780
PRECIOUS METALS FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.74%** 1.74%** (1.13)%** 174% 4,989
March 31,2004 * 1.72%** 1.72%** (0.68)%** 550% 2,112
PRECIOUS METALS FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.35%** 1.35%** (1.46)%** 174% 79
PRECIOUS METALS FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.25%** 2.25%** (1.50)%** 174% 19,744
March 31, 2004 2.27% 2.27% (1.38)% 550% 17,998
March 31, 2003 2.27% 2.27% (0.94)% 744% 2,150
March 31, 2002 * 2.38%** 2.38%** (1.23)%** 839% 910
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 27, 2001 -- PRECIOUS METALS
FUND C-CLASS; MAY 3, 2001 -- LEISURE FUND C-CLASS; AUGUST 1, 2003 --
PRECIOUS METALS FUND ADVISOR CLASS; SEPTEMBER 1, 2004 -- LEISURE FUND
A-CLASS AND PRECIOUS METALS FUND A-CLASS.
** 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.
++ LEISURE FUND -- PER SHARE AMOUNTS FOR THE YEARS ENDED MARCH 31, 2000
THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK
SPLIT EFFECTIVE APRIL 21, 2003. PRECIOUS METALS FUND -- PER SHARE AMOUNTS
FOR THE YEAR ENDED MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 1:5
REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000.
+++ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 65
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE FUND A-CLASS
SEPTEMBER 30,2004*++ $ 26.66 $ .01 $ .04 $ .05 $ -- $ --
REAL ESTATE FUND C-CLASS
SEPTEMBER 30, 2004++ 26.63 .23 (.25) (.02) -- --
March 31, 2004 * 25.00 .02 1.61 1.63 -- --
REAL ESTATE FUND H-CLASS
SEPTEMBER 30, 2004++ 26.65 .25 (.19) .06 -- --
March 31, 2004 * 25.00 .10 1.55 1.65 -- --
RETAILING FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 11.74 (.03) (.82) (.85) -- --
March 31, 2004 8.00 (.08) 3.82 3.74 -- --
March 31, 2003 11.12 (.07) (3.05) (3.12) -- --
March 31, 2002 10.29 (.10) .93 .83 -- --
March 31, 2001 13.22 (.09) (2.84) (2.93) -- --
March 31, 2000 13.54 .02 (.23) (.21) -- (.11)
RETAILING FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 11.49 (.06) (.80) (.86) -- --
March 31, 2004 7.85 (.13) 3.77 3.64 -- --
March 31, 2003 10.94 (.12) (2.97) (3.09) -- --
March 31, 2002 10.17 (.15) .92 .77 -- --
March 31, 2001 13.18 (.16) (2.85) (3.01) -- --
March 31, 2000 13.50 (.33) .12 (.21) -- (.11)
RETAILING FUND A-CLASS
SEPTEMBER 30, 2004*++ 10.45 (.01) .20 .19 -- --
RETAILING FUND C-CLASS
SEPTEMBER 30, 2004++ 11.37 (.08) (.80) (.88) -- --
March 31, 2004 7.81 (.18) 3.74 3.56 -- --
March 31, 2003 11.02 (.20) (3.01) (3.21) -- --
March 31, 2002 * 10.68 (.20) .54 .34 -- --
TECHNOLOGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 11.40 (.05) (1.47) (1.52) -- --
March 31, 2004 7.11 (.11) 4.40 4.29 -- --
March 31, 2003 11.00 (.09) (3.80) (3.89) -- --
March 31, 2002 12.70 (.15) (1.55) (1.70) -- --
March 31, 2001 31.59 (.24) (18.65) (18.89) -- --
March 31, 2000 17.02 (.19) 14.76 14.57 -- --
TECHNOLOGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 11.13 (.08) (1.42) (1.50) -- --
March 31, 2004 6.97 (.16) 4.32 4.16 -- --
March 31, 2003 10.77 (.12) (3.68) (3.80) -- --
March 31, 2002 12.49 (.20) (1.52) (1.72) -- --
March 31, 2001 31.20 (.31) (18.40) (18.71) -- --
March 31, 2000 16.90 (.37) 14.67 14.30 -- --
TECHNOLOGY FUND A-CLASS
SEPTEMBER 30, 2004*++ 9.32 (.01) .31 .30 -- --
TECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2004++ 11.10 (.09) (1.42) (1.51) -- --
March 31, 2004 7.00 (.21) 4.31 4.10 -- --
March 31, 2003 10.90 (.18) (3.72) (3.90) -- --
March 31, 2002 * 14.82 (.25) (3.67) (3.92) -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
REAL ESTATE FUND A-CLASS
SEPTEMBER 30,2004*++ $ -- $ .05 $ 26.71 0.19%
REAL ESTATE FUND C-CLASS
SEPTEMBER 30, 2004++ -- (.02) 26.61 (0.08)%
March 31, 2004 * -- 1.63 26.63 6.52%
REAL ESTATE FUND H-CLASS
SEPTEMBER 30, 2004++ -- .06 26.71 0.23%
March 31, 2004 * -- 1.65 26.65 6.60%
RETAILING FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ -- (.85) 10.89 (7.24)%
March 31, 2004 -- 3.74 11.74 46.75%
March 31, 2003 -- (3.12) 8.00 (28.06)%
March 31, 2002 -- .83 11.12 8.07%
March 31, 2001 -- (2.93) 10.29 (22.16)%
March 31, 2000 (.11) (.32) 13.22 (1.51)%
RETAILING FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ -- (.86) 10.63 (7.48)%
March 31, 2004 -- 3.64 11.49 46.37%
March 31, 2003 -- (3.09) 7.85 (28.24)%
March 31, 2002 -- .77 10.94 7.57%
March 31, 2001 -- (3.01) 10.17 (22.84)%
March 31, 2000 (.11) (.32) 13.18 (1.52)%
RETAILING FUND A-CLASS
SEPTEMBER 30, 2004*++ -- .19 10.64 1.82%
RETAILING FUND C-CLASS
SEPTEMBER 30, 2004++ -- (.88) 10.49 (7.74)%
March 31, 2004 -- 3.56 11.37 45.58%
March 31, 2003 -- (3.21) 7.81 (29.13)%
March 31, 2002 * -- .34 11.02 3.18%
TECHNOLOGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ -- (1.52) 9.88 (13.33)%
March 31, 2004 -- 4.29 11.40 60.34%
March 31, 2003 -- (3.89) 7.11 (35.36)%
March 31, 2002 -- (1.70) 11.00 (13.39)%
March 31, 2001 -- (18.89) 12.70 (59.80)%
March 31, 2000 -- 14.57 31.59 85.61%
TECHNOLOGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ -- (1.50) 9.63 (13.48)%
March 31, 2004 -- 4.16 11.13 59.68%
March 31, 2003 -- (3.80) 6.97 (35.28)%
March 31, 2002 -- (1.72) 10.77 (13.77)%
March 31, 2001 -- (18.71) 12.49 (59.97)%
March 31, 2000 -- 14.30 31.20 84.62%
TECHNOLOGY FUND A-CLASS
SEPTEMBER 30, 2004*++ -- .30 9.62 3.22%
TECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2004++ -- (1.51) 9.59 (13.60)%
March 31, 2004 -- 4.10 11.10 58.57%
March 31, 2003 -- (3.90) 7.00 (35.78)%
March 31, 2002 * -- (3.92) 10.90 (26.45)%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ------------------------------------------------------------------------------------------------------------------
REAL ESTATE FUND A-CLASS
SEPTEMBER 30,2004*++ 1.61%** 1.61%** 0.28%** 1,020% $ 61
REAL ESTATE FUND C-CLASS
SEPTEMBER 30, 2004++ 2.35%** 2.35%** 1.82%** 1,020% 913
March 31, 2004 * 2.36%** 2.36%** 0.72%** 102% 7,562
REAL ESTATE FUND H-CLASS
SEPTEMBER 30, 2004++ 1.61%** 1.61%** 1.96%** 1,020% 39,684
March 31, 2004 * 1.61%** 1.61%** 3.83%** 102% 75,916
RETAILING FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 1.35%** 1.35%** (0.51)%** 702% 4,564
March 31, 2004 1.35% 1.35% (0.78)% 1,825% 11,738
March 31, 2003 1.38% 1.38% (0.82)% 3,788% 2,964
March 31, 2002 1.44% 1.44% (0.92)% 2,030% 21,667
March 31, 2001 1.51% 1.50% (0.78)% 3,062% 33,228
March 31, 2000 1.44% 1.44% 0.16% 2,537% 81,097
RETAILING FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 1.85%** 1.85%** (1.06)%** 702% 4,680
March 31, 2004 1.85% 1.85% (1.25)% 1,825% 15,863
March 31, 2003 1.88% 1.88% (1.35)% 3,788% 14,965
March 31, 2002 1.95% 1.95% (1.40)% 2,030% 37,690
March 31, 2001 2.10% 2.09% (1.49)% 3,062% 11,286
March 31, 2000 2.10% 2.09% (2.69)% 2,537% 91,740
RETAILING FUND A-CLASS
SEPTEMBER 30, 2004*++ 1.75%** 1.75%** (1.33)%** 702% 1
RETAILING FUND C-CLASS
SEPTEMBER 30, 2004++ 2.35%** 2.35%** (1.50)%** 702% 1,095
March 31, 2004 2.36% 2.36% (1.72)% 1,825% 2,362
March 31, 2003 2.32% 2.32% (1.89)% 3,788% 85
March 31, 2002 * 2.70%** 2.70%** (2.13)%** 2,030% 1,028
TECHNOLOGY FUND INVESTOR CLASS
SEPTEMBER 30, 2004++ 1.35%** 1.35%** (0.95)%** 720% 15,311
March 31, 2004 1.36% 1.36% (1.07)% 1,853% 17,114
March 31, 2003 1.38% 1.38% (1.13)% 1,938% 8,348
March 31, 2002 1.44% 1.44% (1.21)% 1,017% 35,815
March 31, 2001 1.30% 1.30% (1.01)% 2,202% 26,660
March 31, 2000 1.41% 1.40% (0.85)% 4,929% 90,002
TECHNOLOGY FUND ADVISOR CLASS
SEPTEMBER 30, 2004++ 1.85%** 1.85%** (1.49)%** 720% 14,966
March 31, 2004 1.86% 1.86% (1.58)% 1,853% 17,972
March 31, 2003 1.88% 1.88% (1.62)% 1,938% 16,717
March 31, 2002 1.93% 1.93% (1.69)% 1,017% 25,769
March 31, 2001 1.81% 1.81% (1.48)% 2,202% 20,450
March 31, 2000 1.89% 1.89% (1.60)% 4,929% 32,537
TECHNOLOGY FUND A-CLASS
SEPTEMBER 30, 2004*++ 1.65%** 1.65%** (1.46)%** 720% 6
TECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2004++ 2.35%** 2.35%** (1.89)%** 720% 806
March 31, 2004 2.36% 2.36% (2.13)% 1,853% 1,101
March 31, 2003 2.37% 2.37% (2.07)% 1,938% 434
March 31, 2002 * 2.43%** 2.43%** (2.22)%** 1,017% 424
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001-- TECHNOLOGY FUND
C-CLASS; MAY 9, 2001--RETAILING FUND C-CLASS; FEBRUARY 20, 2004 -- REAL
ESTATE FUND C-CLASS AND H-CLASS; SEPTEMBER 1, 2004 -- REAL ESTATE FUND
A-CLASS, RETAILING FUND A-CLASS AND TECHNOLOGY FUND A-CLASS.
** 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.
++ UNAUDITED
See Notes to Financial Statements.
66 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ $ 15.48 $ .01 $ (1.09) $ (1.08) $ -- $ --
March 31, 2004 10.05 -- 5.48 5.48 (.05) --
March 31, 2003 ++ 15.12 .06 (5.13) (5.07) -- --
March 31, 2002 ++ 24.03 (.12) (8.70) (8.82) -- (.09)
March 31, 2001 ++ 61.17 (.30) (36.84) (37.14) -- --
March 31, 2000 ++ 39.09 (.30) 22.41 22.11 -- (.03)
TELECOMMUNICATIONS FUND ADVISOR CLASS
SEPTEMBER 30,2004+++ 15.07 (.03) (1.05) (1.08) -- --
March 31, 2004 9.81 (.08) 5.39 5.31 (.05) --
March 31, 2003 ++ 14.76 (.09) (4.86) (4.95) -- --
March 31, 2002 ++ 23.58 (.06) (8.67) (8.73) -- (.09)
March 31, 2001 ++ 60.39 (.54) (36.27) (36.81) -- --
March 31, 2000 ++ 38.73 (.57) 22.26 21.69 -- (.03)
TELECOMMUNICATIONS FUND A-CLASS
SEPTEMBER 30,2004*+++ 13.55 -- .44 .44 -- --
TELECOMMUNICATIONS FUND C-CLASS
SEPTEMBER 30,2004+++ 15.06 (.05) (1.07) (1.12) -- --
March 31, 2004 9.84 (.15) 5.42 5.27 (.05) --
March 31, 2003 ++ 14.97 (.09) (5.04) (5.13) -- --
March 31, 2002 *++ 26.91 (.24) (11.61) (11.85) -- (.09)
TRANSPORTATION FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ 18.84 (.07) 1.65 1.58 -- --
March 31, 2004 15.03 (.06) 3.87 3.81 -- --
March 31, 2003 ++ 20.85 (.12) (5.70) (5.82) -- --
March 31, 2002 ++ 19.26 (.09) 1.68 1.59 -- --
March 31, 2001 ++ 18.72 -- .54 .54 -- --
March 31, 2000 ++ 23.97 (.21) (5.04) (5.25) -- --
TRANSPORTATION FUND ADVISOR CLASS
SEPTEMBER 30,2004+++ 18.02 (.12) 1.55 1.43 -- --
March 31, 2004 14.40 (.12) 3.74 3.62 -- --
March 31, 2003 ++ 19.98 (.15) (5.43) (5.58) -- --
March 31, 2002 ++ 18.57 (.21) 1.62 1.41 -- --
March 31, 2001 ++ 18.48 (.03) .12 .09 -- --
March 31, 2000 ++ 23.85 -- (5.37) (5.37) -- --
TRANSPORTATION FUND A-CLASS
SEPTEMBER 30,2004*+++ 18.73 (.01) .73 .72 -- --
TRANSPORTATION FUND C-CLASS
SEPTEMBER 30,2004+++ 18.43 (.17) 1.61 1.44 -- --
March 31, 2004 14.85 (.25) 3.83 3.58 -- --
March 31, 2003 ++ 20.73 (.27) (5.61) (5.88) -- --
March 31, 2002 *++ 20.04 (.24) .93 .69 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ $ -- $ (1.08) $ 14.40 (6.98)%
March 31, 2004 (.05) 5.43 15.48 54.59%
March 31, 2003 ++ -- (5.07) 10.05 (33.53)%
March 31, 2002 ++ (.09) (8.91) 15.12 (36.84)%
March 31, 2001 ++ -- (37.14) 24.03 (60.72)%
March 31, 2000 ++ (.03) 22.08 61.17 56.54%
TELECOMMUNICATIONS FUND ADVISOR CLASS
SEPTEMBER 30,2004+++ -- (1.08) 13.99 (7.17)%
March 31, 2004 (.05) 5.26 15.07 54.20%
March 31, 2003 ++ -- (4.95) 9.81 (33.54)%
March 31, 2002 ++ (.09) (8.82) 14.76 (37.16)%
March 31, 2001 ++ -- (36.81) 23.58 (60.95)%
March 31, 2000 ++ (.03) 21.66 60.39 55.98%
TELECOMMUNICATIONS FUND A-CLASS
SEPTEMBER 30,2004*+++ -- .44 13.99 3.25%
TELECOMMUNICATIONS FUND C-CLASS
SEPTEMBER 30,2004+++ -- (1.12) 13.94 (7.44)%
March 31, 2004 (.05) 5.22 15.06 53.62%
March 31, 2003 ++ -- (5.13) 9.84 (34.27)%
March 31, 2002 *++ (.09) (11.94) 14.97 (44.16)%
TRANSPORTATION FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ -- 1.58 20.42 8.39%
March 31, 2004 -- 3.81 18.84 25.35%
March 31, 2003 ++ -- (5.82) 15.03 (27.91)%
March 31, 2002 ++ -- 1.59 20.85 8.26%
March 31, 2001 ++ -- .54 19.26 2.88%
March 31, 2000 ++ -- (5.25) 18.72 (21.90)%
TRANSPORTATION FUND ADVISOR CLASS
SEPTEMBER 30,2004+++ -- 1.43 19.45 7.94%
March 31, 2004 -- 3.62 18.02 25.14%
March 31, 2003 ++ -- (5.58) 14.40 (27.93)%
March 31, 2002 ++ -- 1.41 19.98 7.59%
March 31, 2001 ++ -- .09 18.57 0.49%
March 31, 2000 ++ -- (5.37) 18.48 (22.52)%
TRANSPORTATION FUND A-CLASS
SEPTEMBER 30,2004*+++ -- .72 19.45 3.84%
TRANSPORTATION FUND C-CLASS
SEPTEMBER 30,2004+++ -- 1.44 19.87 7.81%
March 31, 2004 -- 3.58 18.43 24.11%
March 31, 2003 ++ -- (5.88) 14.85 (28.36)%
March 31, 2002 *++ -- .69 20.73 3.44%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ 1.34%** 1.34%** 0.20%** 589% $11,558
March 31, 2004 1.37% 1.37% 0.01% 1,506% 14,406
March 31, 2003 ++ 1.38% 1.38% 0.46% 2,431% 9,152
March 31, 2002 ++ 1.51% 1.51% (0.60)% 1,192% 4,530
March 31, 2001 ++ 1.37% 1.37% (0.65)% 1,273% 9,924
March 31, 2000 ++ 1.50% 1.49% (0.59)% 1,555% 66,904
TELECOMMUNICATIONS FUND ADVISOR CLASS
SEPTEMBER 30,2004+++ 1.88%** 1.88%** (0.35)%** 589% 4,802
March 31, 2004 1.87% 1.87% (0.58)% 1,506% 7,376
March 31, 2003 ++ 1.86% 1.86% (0.68)% 2,431% 898
March 31, 2002 ++ 1.87% 1.87% (0.29)% 1,192% 931
March 31, 2001 ++ 1.87% 1.86% (1.24)% 1,273% 19,154
March 31, 2000 ++ 2.05% 2.05% (1.14)% 1,555% 3,449
TELECOMMUNICATIONS FUND A-CLASS
SEPTEMBER 30,2004*+++ 1.18%** 1.18%** 0.37%** 589% 9
TELECOMMUNICATIONS FUND C-CLASS
SEPTEMBER 30,2004+++ 2.36%** 2.36%** (0.73)%** 589% 1,337
March 31, 2004 2.37% 2.37% (1.09)% 1,506% 3,635
March 31, 2003 ++ 2.41% 2.41% (0.71)% 2,431% 774
March 31, 2002 *++ 2.43%** 2.43%** (1.25)%** 1,192% 19
TRANSPORTATION FUND INVESTOR CLASS
SEPTEMBER 30,2004+++ 1.36%** 1.36%** (0.68)%** 538% 16,722
March 31, 2004 1.36% 1.36% (0.34)% 1,624% 3,792
March 31, 2003 ++ 1.40% 1.40% (0.70)% 2,786% 960
March 31, 2002 ++ 1.56% 1.56% (0.51)% 1,704% 18,215
March 31, 2001 ++ 1.55% 1.54% (0.05)% 1,293% 8,246
March 31, 2000 ++ 1.97% 1.96% (0.92)% 1,970% 18,501
TRANSPORTATION FUND ADVISOR CLASS
SEPTEMBER 30,2004+++ 1.86%** 1.86%** (1.30)%** 538% 5,291
March 31, 2004 1.83% 1.83% (0.73)% 1,624% 4,284
March 31, 2003 ++ 1.92% 1.92% (0.94)% 2,786% 3,561
March 31, 2002 ++ 2.23% 2.23% (1.16)% 1,704% 23,807
March 31, 2001 ++ 2.08% 2.08% (0.16)% 1,293% 233
March 31, 2000 ++ 1.34% 1.33% (0.08)% 1,970% 87,189
TRANSPORTATION FUND A-CLASS
SEPTEMBER 30,2004*+++ 1.61%** 1.61%** (1.02)%** 538% 32
TRANSPORTATION FUND C-CLASS
SEPTEMBER 30,2004+++ 2.35%** 2.35%** (1.72)%** 538% 1,124
March 31, 2004 2.36% 2.36% (1.53)% 1,624% 656
March 31, 2003 ++ 2.36% 2.36% (1.51)% 2,786% 514
March 31, 2002 *++ 2.59%** 2.59%** (1.35)%** 1,704% 654
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001-- TELECOMMUNICATIONS
FUND C-CLASS; MAY 14, 2001-- TRANSPORTATION FUND C-CLASS; SEPTEMBER 1,
2004 -- TELECOMMUNICATIONS FUND A-CLASS AND TRANSPORTATION FUND A-CLASS.
** 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 YEARS ENDED MARCH 31, 2000 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
+++ UNAUDITED
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 67
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------
UTILITIES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ 20.57 $ .26 $ .51 $ .77 $ -- $ --
March 31, 2004 16.38 .45 4.71 5.16 (.97) --
March 31, 2003 ++ 25.44 .60 (9.12) (8.52) (.54) --
March 31, 2002 ++ 35.52 .60 (9.12) (8.52) (1.56) --
March 31, 2001 *++ 30.00 .54 4.98 5.52 -- --
UTILITIES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 20.10 .19 .51 .70 -- --
March 31, 2004 16.11 .30 4.66 4.96 (.97) --
March 31, 2003 ++ 25.23 .33 (8.91) (8.58) (.54) --
March 31, 2002 ++ 35.43 .36 (9.00) (8.64) (1.56) --
March 31, 2001 *++ 30.00 .36 5.07 5.43 -- --
UTILITIES FUND A-CLASS
SEPTEMBER 30, 2004*+++ 20.66 .02 .12 .14 -- --
UTILITIES FUND C-CLASS
SEPTEMBER 30, 2004+++ 19.77 .13 .50 .63 -- --
March 31, 2004 15.93 .22 4.59 4.81 (.97) --
March 31, 2003 ++ 25.08 .30 (8.91) (8.61) (.54) --
March 31, 2002 *++ 37.98 (.12) (11.22) (11.34) (1.56) --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------
UTILITIES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ $ -- $ .77 $ 21.34 3.74%
March 31, 2004 (.97) 4.19 20.57 32.11%
March 31, 2003 ++ (.54) (9.06) 16.38 (33.55)%
March 31, 2002 ++ (1.56) (10.08) 25.44 (24.07)%
March 31, 2001 *++ -- 5.52 35.52 18.40%
UTILITIES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ -- .70 20.80 3.48%
March 31, 2004 (.97) 3.99 20.10 31.39%
March 31, 2003 ++ (.54) (9.12) 16.11 (34.07)%
March 31, 2002 ++ (1.56) (10.20) 25.23 (24.47)%
March 31, 2001 *++ -- 5.43 35.43 18.10%
UTILITIES FUND A-CLASS
SEPTEMBER 30, 2004*+++ -- .14 20.80 0.68%
UTILITIES FUND C-CLASS
SEPTEMBER 30, 2004+++ -- .63 20.40 3.19%
March 31, 2004 (.97) 3.84 19.77 30.80%
March 31, 2003 ++ (.54) (9.15) 15.93 (34.40)%
March 31, 2002 *++ (1.56) (12.90) 25.08 (29.95)%
RATIOS TO
AVERAGE NET ASSETS:
-------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------------------------------------------
UTILITIES FUND INVESTOR CLASS
SEPTEMBER 30, 2004+++ 1.36%** 1.36%** 2.52%** 568% $26,733
March 31, 2004 1.35% 1.35% 2.50% 1,609% 19,170
March 31, 2003 ++ 1.39% 1.39% 3.24% 3,158% 9,978
March 31, 2002 ++ 1.54% 1.54% 2.00% 2,418% 26,539
March 31, 2001 *++ 1.59%** 1.59%** 1.65%** 1,591% 15,566
UTILITIES FUND ADVISOR CLASS
SEPTEMBER 30, 2004+++ 1.86%** 1.86%** 1.83%** 568% 6,744
March 31, 2004 1.84% 1.84% 1.91% 1,609% 1,072
March 31, 2003 ++ 1.89% 1.89% 1.74% 3,158% 2,239
March 31, 2002 ++ 1.85% 1.85% 1.15% 2,418% 6,053
March 31, 2001 *++ 2.09%** 2.08%** 1.03%** 1,591% 14,360
UTILITIES FUND A-CLASS
SEPTEMBER 30, 2004*+++ 1.62%** 1.62%** 1.65%** 568% 49
UTILITIES FUND C-CLASS
SEPTEMBER 30, 2004+++ 2.35%** 2.35%** 1.33%** 568% 2,781
March 31, 2004 2.36% 2.36% 1.19% 1,609% 3,948
March 31, 2003 ++ 2.42% 2.42% 1.56% 3,158% 939
March 31, 2002 *++ 2.76%** 2.76%** (0.48)%** 2,418% 192
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 3, 2000 -- INVESTOR AND
ADVISOR CLASS; APRIL 27, 2001-- C-CLASS; SEPTEMBER 1, 2004 -- A-CLASS.
** 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 YEARS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
+++ UNAUDITED
See Notes to Financial Statements.
68 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is 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 is authorized to issue an
unlimited number of no par value shares. The Trust offers six separate classes
of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class
Shares, H-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, with the
exception of A-Class Shares. C-Class Shares have a 1% Contingent Deferred Sales
Charge ("CDSC") if Shares are redeemed within 12 months of purchase. A-Class
Shares are sold at net asset value, plus the applicable front-end sales charge.
The sales charge varies depending on the amount of your purchase, but will not
exceed 4.75%. A-Class Share purchases of $1 million or more have a 1% Contingent
Deferred Sales Charge ("CDSC") if Shares are redeemed within 18 months of
purchase. The current sales charge rates are as follows:
SALES CHARGE AS % OF SALES CHARGE AS % OF NET
AMOUNT OF INVESTMENT OFFERING PRICE AMOUNT INVESTED
- --------------------------------------------------------------------------------
Less than $100,000 4.75% 4.99%
$100,000 but less
than $250,000 3.75% 3.90%
$250,000 but less
than $500,000 2.75% 2.83%
$500,000 but less
than $1,000,000 1.60% 1.63%
Greater than $1,000,000 0.00% 0.00%
At September 30, 2004, the Trust consisted of forty-three separate series:
twenty-two Benchmark Funds, one Money Market Fund, eighteen Sector Funds, and
two Strategic Funds. This report covers the eighteen Sector Funds (the "Funds"),
while the Money Market Fund, the Benchmark Funds and the Strategic Funds are
contained in separate reports. At September 30, 2004, none of the Funds have
issued 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 ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the NYSE, 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, usually as of 4:00 p.m., Eastern Time, 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 Advisor Class Shares, A-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 upon the
respective aggregate net asset 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, post-October losses and regulated futures contracts and options.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 69
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
E. Each 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 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 of Rydex Global Advisors.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent and administrative services to the Trust for fees calculated at
an annualized rate of 0.25% of the average daily net assets of each of the
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 Funds. Certain
officers and trustees of the Trust are also officers of Rydex Fund Services.
The Trust has adopted a Distribution Plan and Shareholder Services Plan
applicable to its Advisor Class Shares and a Distribution Plan applicable to
A-Class Shares and 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. With regard to Advisor Class Shares only, if a Service
Provider provides shareholder 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
applicable to its C-Class Shares that allows the Funds to pay annual
distribution and service fees of 1.00% of the Funds' C-Class Shares average
daily net assets. The annual 0.25% service fee compensates the shareholder's
financial advisor for providing on-going services to the shareholder. The annual
0.75% distribution fee reimburses the Distributor for paying the shareholder's
financial advisor an on-going sales commission. The Distributor advances the
first year's service and distribution fees. The Distributor retains the service
and distribution fees on accounts with no authorized dealer of record. Certain
officers and trustees of the Trust are also officers of Rydex Distributors, Inc.
3. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income and capital gains to 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 derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
70 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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. 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, 2004, 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 $ 27,607,545 $ 2,814,306 $ (10,497) $ 2,803,809
Basic Materials Fund 56,353,782 3,964,205 (20,509) 3,943,696
Biotechnology Fund 121,695,352 68,152,498 (115,268) 68,037,230
Consumer Products Fund 24,620,155 -- (573,178) (573,178)
Electronics Fund 19,756,203 19,059,157 -- 19,059,157
Energy Fund 148,487,868 20,909,316 -- 20,909,316
Energy Services Fund 86,162,983 19,767,461 -- 19,767,461
Financial Services Fund 33,131,170 7,236,275 -- 7,236,275
Health Care Fund 45,922,747 6,344,538 (744,801) 5,599,737
Internet Fund 14,686,484 866,923 (27,279) 839,644
Leisure Fund 41,342,833 1,469,444 (157,659) 1,311,785
Precious Metals Fund 255,823,399 55,862,980 (145,973) 55,717,007
Real Estate Fund 43,736,318 -- (948,898) (948,898)
Retailing Fund 4,882,292 7,724,450 -- 7,724,450
Technology Fund 29,576,253 6,200,875 (63,939) 6,136,936
Telecommunications Fund 17,166,066 3,308,065 (43,128) 3,264,937
Transportation Fund 26,566,819 1,416,317 (156,430) 1,259,887
Utilities Fund 38,750,969 5,248,894 -- 5,248,894
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 71
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
4. REPURCHASE AGREEMENTS
The Funds transfer uninvested cash balances into a single joint account, along
with uninvested cash balances of the Sector Rotation Fund (included in the
Trust, but contained in a separate report) and the Rydex Dynamic Funds (the
Titan Master Portfolio, the Tempest Master Portfolio, the Venture Master
Portfolio, the Dynamic Dow Master Portfolio, and the Inverse Dynamic Dow Master
Portfolio), a separate Trust. The daily aggregate balance is invested in one or
more repurchase agreements collateralized by obligations of the U.S. Treasury.
The collateral is in the possession of the Trusts' custodian and is evaluated
daily to ensure that its market value exceeds the delivery value of the
repurchase agreement at maturity.
The repurchase agreements that were executed by the joint account and
outstanding as of September 30, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------------------------------------------------------------------------------------------------
UBS Financial Services, Inc. 1.71% due 10/01/04 $303,702,334 $303,702,334 $303,716,760
- ------------------------------------------------------------------------------------------------------
$303,702,334 $303,716,760
======================================================================================================
As of September 30, 2004, 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% $ 71,245,050 $ 95,713,941
U. S. Treasury Notes 3.500% - 4.250% 185,004,858 214,072,627
- --------------------------------------------------------------------------------
$309,786,568
================================================================================
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, 2004, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
BASIC BIOTECH- CONSUMER ENERGY FINANCIAL
BANKING MATERIALS NOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases $190,133,405 $209,689,453 $383,268,303 $251,376,748 $265,434,907 $433,485,577 $195,311,466 $193,942,547
Sales $181,106,150 $206,782,974 $383,575,524 $265,648,825 $272,687,516 $368,900,123 $190,598,870 $234,745,683
HEALTH PRECIOUS REAL TELECOMMU-
CARE INTERNET LEISURE METALS ESTATE RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases $166,832,893 $244,607,438 $169,304,041 $348,868,971 $447,477,736 $125,224,986 $298,184,290 $101,188,743
Sales $161,713,874 $256,225,643 $193,942,673 $330,746,844 $488,027,977 $142,884,260 $296,931,524 $106,544,190
TRANSPOR-
TATION UTILITIES
FUND FUND
- ---------------------------------------
Purchases $170,342,786 $163,384,720
Sales $153,538,814 $152,246,323
72 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares.
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED
- -------------------------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31, September 30, March 31,
2004 2004 2004 2004 2004 2004
- -------------------------------------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 15,063,693 29,305,567 -- 21,240 (15,243,230) (29,114,241)
Advisor Class 4,934,936 8,354,009 -- 9,588 (3,737,203) (8,041,937)
A-Class* 2,426 -- -- -- -- --
C-Class 1,300,018 5,623,221 -- 5,862 (1,326,176) (5,454,395)
BASIC MATERIALS FUND
Investor Class 7,217,948 20,611,388 -- 1,998 (7,085,818) (20,030,089)
Advisor Class 2,071,098 4,166,675 -- 1,426 (2,253,185) (4,054,982)
A-Class* 2,036 -- -- -- -- --
C-Class 736,047 2,071,086 -- 234 (678,510) (1,908,446)
BIOTECHNOLOGY FUND
Investor Class 23,530,861 55,501,925 -- -- (24,180,759) (56,979,775)
Advisor Class 1,962,176 5,467,658 -- -- (1,455,208) (6,646,230)
A-Class* 540 -- -- -- -- --
C-Class 1,010,196 2,625,351 -- -- (944,351) (2,570,067)
CONSUMER PRODUCTS FUND
Investor Class 7,166,224 7,588,839 -- 272 (7,696,600) (7,003,713)
Advisor Class 2,415,256 3,619,311 -- 1,325 (2,424,263) (3,601,289)
A-Class* 809 -- -- -- -- --
C-Class 780,507 1,412,449 -- 28 (856,124) (1,288,543)
ELECTRONICS FUND
Investor Class 36,213,407 97,206,931 -- -- (36,816,403) (97,683,758)
Advisor Class 938,881 10,258,033 -- -- (879,383) (10,939,877)
A-Class* 108 -- -- -- -- --
C-Class 915,411 4,994,160 -- -- (862,579) (5,027,603)
ENERGY FUND
Investor Class 33,428,503 43,036,804 -- 6,458 (29,886,092) (38,402,713)
Advisor Class 4,889,314 6,143,268 -- 309 (4,092,680) (6,540,008)
A-Class* 3,515 -- -- -- -- --
C-Class 3,033,500 3,766,553 -- 758 (2,555,245) (3,371,400)
NET SHARES
PURCHASED (REDEEMED)
- ------------------------------------------------------
Period Ended Period Ended
September 30, March 31,
2004 2004
- ------------------------------------------------------
BANKING FUND
Investor Class (179,537) 212,566
Advisor Class 1,197,733 321,660
A-Class* 2,426 --
C-Class (26,158) 174,688
BASIC MATERIALS FUND
Investor Class 132,130 583,297
Advisor Class (182,087) 113,119
A-Class* 2,036 --
C-Class 57,537 162,874
BIOTECHNOLOGY FUND
Investor Class (649,898) (1,477,850)
Advisor Class 506,968 (1,178,572)
A-Class* 540 --
C-Class 65,845 55,284
CONSUMER PRODUCTS FUND
Investor Class (530,376) 585,398
Advisor Class (9,007) 19,347
A-Class* 809 --
C-Class (75,617) 123,934
ELECTRONICS FUND
Investor Class (602,996) (476,827)
Advisor Class 59,498 (681,844)
A-Class* 108 --
C-Class 52,832 (33,443)
ENERGY FUND
Investor Class 3,542,411 4,640,549
Advisor Class 796,634 (396,431)
A-Class* 3,515 --
C-Class 478,255 395,911
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 73
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED
- ----------------------------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31, September 30, March 31,
2004 2004 2004 2004 2004 2004
- ----------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
Investor Class 9,480,473 27,532,018 -- -- (9,230,012) (27,969,595)
Advisor Class 2,457,977 4,161,536 -- -- (2,869,109) (3,313,313)
A-Class* 365 -- -- -- -- --
C-Class 1,058,224 1,831,031 -- -- (914,180) (1,811,384)
FINANCIAL SERVICES FUND
Investor Class 14,346,467 62,655,161 -- 6,535 (16,593,446) (60,428,933)
Advisor Class 2,968,213 9,592,691 -- 13,512 (4,639,113) (7,843,675)
A-Class* 1,995 -- -- -- -- --
C-Class 1,767,074 3,297,493 -- 497 (1,742,963) (3,120,443)
HEALTH CARE FUND
Investor Class 15,327,801 40,582,183 -- -- (14,793,412) (40,452,245)
Advisor Class 3,157,742 9,867,577 -- -- (3,430,011) (10,207,863)
A-Class* 1,840 -- -- -- -- --
C-Class 1,215,230 5,281,351 -- -- (1,151,931) (5,091,497)
INTERNET FUND
Investor Class 8,002,723 10,328,468 -- -- (8,225,423) (10,062,830)
Advisor Class 710,363 1,821,415 -- -- (950,393) (1,510,255)
A-Class* 354 -- -- -- -- --
C-Class 330,700 809,388 -- -- (312,312) (776,125)
LEISURE FUND
Investor Class 4,889,425 20,010,992 -- -- (5,265,569) (19,496,218)
Advisor Class 1,925,069 5,685,748 -- -- (2,592,560) (4,818,501)
A-Class* 41 -- -- -- -- --
C-Class 605,380 1,193,130 -- -- (580,934) (1,118,911)
PRECIOUS METALS FUND
Investor Class 19,784,939 60,465,084 -- 1,027 (19,693,205) (57,926,677)
Advisor Class 1,794,273 2,891,458*** -- 24*** (1,720,361) (2,843,657)***
A-Class* 1,925 -- -- -- -- --
C-Class 1,045,540 2,089,399 -- 69 (968,021) (1,754,060)
REAL ESTATE FUND
A-Class* 2,299 -- -- -- -- --
C-Class 1,250,791 518,598** -- -- (1,500,429) (234,654)**
H-Class 21,827,913 4,553,101** -- -- (23,190,511) (1,704,781)**
NET SHARES
PURCHASED (REDEEMED)
- --------------------------------------------------------
Period Ended Period Ended
September 30, March 31,
2004 2004
- --------------------------------------------------------
ENERGY SERVICES FUND
Investor Class 250,461 (437,577)
Advisor Class (411,132) 848,223
A-Class* 365 --
C-Class 144,044 19,647
FINANCIAL SERVICES FUND
Investor Class (2,246,979) 2,232,763
Advisor Class (1,670,900) 1,762,528
A-Class* 1,995 --
C-Class 24,111 177,547
HEALTH CARE FUND
Investor Class 534,389 129,938
Advisor Class (272,269) (340,286)
A-Class* 1,840 --
C-Class 63,299 189,854
INTERNET FUND
Investor Class (222,700) 265,638
Advisor Class (240,030) 311,160
A-Class* 354 --
C-Class 18,388 33,263
LEISURE FUND
Investor Class (376,144) 514,774
Advisor Class (667,491) 867,247
A-Class* 41 --
C-Class 24,446 74,219
PRECIOUS METALS FUND
Investor Class 91,734 2,539,434
Advisor Class 73,912 47,825***
A-Class* 1,925 --
C-Class 77,519 335,408
REAL ESTATE FUND
A-Class* 2,299 --
C-Class (249,638) 283,944**
H-Class (1,362,598) 2,848,320**
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003.
74 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED
- -------------------------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31, September 30, March 31,
2004 2004 2004 2004 2004 2004
- -------------------------------------------------------------------------------------------------------------------------
RETAILING FUND
Investor Class 11,964,653 64,015,398 -- -- (12,545,109) (63,386,483)
Advisor Class 3,393,818 11,383,651 -- -- (4,334,884) (11,909,168)
A-Class* 96 -- -- -- -- --
C-Class 781,149 2,829,150 -- -- (884,518) (2,632,277)
TECHNOLOGY FUND
Investor Class 24,789,610 62,209,751 -- -- (24,741,967) (61,881,539)
Advisor Class 2,240,378 9,285,597 -- -- (2,300,984) (10,069,987)
A-Class* 593 -- -- -- -- --
C-Class 3,708,373 26,695,477 -- -- (3,723,544) (26,658,185)
TELECOMMUNICATIONS FUND
Investor Class 7,847,669 30,293,759 -- 1,906 (7,975,827) (32,100,045)
Advisor Class 688,634 2,417,651 -- 846 (834,738) (2,203,474)
A-Class* 666 -- -- -- -- --
C-Class 702,163 3,064,162 -- 260 (847,610) (3,058,981)
TRANSPORTATION FUND
Investor Class 8,110,926 11,392,455 -- -- (7,493,236) (11,382,778)
Advisor Class 2,623,472 4,599,067 -- -- (2,589,294) (5,103,040)
A-Class* 1,646 -- -- -- -- --
C-Class 505,910 822,636 -- -- (484,927) (890,806)
UTILITIES FUND
Investor Class 7,419,196 21,344,704 -- 23,492 (7,098,525) (22,263,408)
Advisor Class 1,817,908 7,048,391 -- 4,166 (1,546,975) (7,416,205)
A-Class* 2,371 -- -- -- -- --
C-Class 723,187 2,580,705 -- 3,675 (786,611) (2,561,542)
NET SHARES
PURCHASED (REDEEMED)
- -----------------------------------------------------
Period Ended Period Ended
September 30, March 31,
2004 2004
- -----------------------------------------------------
RETAILING FUND
Investor Class (580,456) 628,915
Advisor Class (941,066) (525,517)
A-Class* 96 --
C-Class (103,369) 196,873
TECHNOLOGY FUND
Investor Class 47,643 328,212
Advisor Class (60,606) (784,390)
A-Class* 593 --
C-Class (15,171) 37,292
TELECOMMUNICATIONS FUND
Investor Class (128,158) (1,804,380)
Advisor Class (146,104) 215,023
A-Class* 666 --
C-Class (145,447) 5,441
TRANSPORTATION FUND
Investor Class 617,690 9,677
Advisor Class 34,178 (503,973)
A-Class* 1,646 --
C-Class 20,983 (68,170)
UTILITIES FUND
Investor Class 320,671 (895,212)
Advisor Class 270,933 (363,648)
A-Class* 2,371 --
C-Class (63,424) 22,838
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 75
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
7. 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, 2004, the pooled cash
collateral investments consisted of repurchase agreements (41.98%), commercial
paper (27.65%), fixed income notes (24.41%), corporate bonds (5.95%) and mutual
funds (0.01%). Collateral is maintained over the life of the loan in an amount
not less than the value of loaned securities, as determined at the close of fund
business each day; any additional collateral required due to changes in security
values is delivered to the fund the next business day. Although the collateral
mitigates risk, the Trust could experience a delay in recovering its securities
and a possible loss of income or value if the borrower fails to return the
securities. The Trust has the right under the securities lending agreement to
recover the securities from the borrower on demand.
At September 30, 2004 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ---- ----------- -----------
Banking Fund $ 2,386,271 $ 2,314,000
Basic Materials Fund 7,583,211 7,442,948
Biotechnology Fund 52,868,168 51,031,469
Consumer Products Fund 1,748,026 1,686,205
Electronics Fund 7,009,431 6,513,071
Energy Fund 23,463,476 22,930,472
Energy Services Fund 17,615,930 17,138,033
Financial Services Fund 6,332,886 6,170,580
Health Care Fund 8,913,225 8,641,072
Internet Fund 3,269,240 3,165,091
Leisure Fund 5,306,998 5,099,474
Precious Metals Fund 61,413,695 59,790,094
Real Estate Fund 2,919,459 2,844,206
Retailing Fund 2,309,636 2,230,654
Technology Fund 4,925,840 4,699,450
Telecommunications Fund 2,947,994 2,777,130
Transportation Fund 4,253,130 4,096,302
Utilities Fund 8,083,540 7,674,113
76 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
UNAUDITED PROXY VOTING INFORMATION
- --------------------------------------------------------------------------------
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 77
UNAUDITED INFORMATION
ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Each Trust is served by a separate Board of Trustees composed of six members.
The membership of each Board is the same. There is no stated term of service,
and Trustees continue to serve after election until resignation. The Statement
of Additional Information includes further information about Fund Trustees and
Officers, and can be obtained without charge by calling (800) 820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEE AND OFFICER
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- -------------------- --------------------------- --------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 100
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex
Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex
Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund
Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and
Rydex Distributors, Inc., (1997 to 2000)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- -------------------- --------------------------- --------------
COREY A. COLEHOUR Rydex Series Funds - 1993 100
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
---------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 100
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
---------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 101
Trustee (1940) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners
SphinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
---------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 100
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
---------------------------
78 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
UNAUDITED INFORMATION
ON BOARD OF TRUSTEES AND OFFICERS (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- -------------------- --------------------------- --------------
ROGER SOMERS Rydex Series Funds - 1993 100
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS
YEAR OF BIRTH DURING PAST FIVE YEARS
- ------------------ ----------------------
NICK BONOS* Vice President and Treasurer of Rydex
Vice President and Treasurer (1963) Series Funds, Rydex Variable Trust,
Rydex Dynamic Funds, Rydex ETF Trust,
and Rydex Capital Partners SPhinX Fund,
2003 to present; Senior Vice President
of Rydex Fund Services, Inc., 2003 to
present; Vice President of Accounting of
Rydex Fund Services, Inc., 2000 to
2003; Vice President of Mutual Fund
Services, State Street Corp., 1997 to
1999.
MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex
Vice President and Secretary (1970) Variable Trust, and Rydex Dynamic Funds,
2004 to present; Vice President of Rydex
Series Funds, 1997 to present; Vice
President of Rydex Variable Trust, 1998
to present; Vice President of Rydex
Dynamic Funds, 1999 to present; Vice
President of Rydex ETF Trust, 2002 to
present; President and Trustee of Rydex
Capital Partners SPhinX Fund, 2003 to
present; President of Rydex Global
Advisors, 2004 to present; Chief
Operating Officer of Rydex Global
Advisors and Rydex Distributors, Inc.,
2003 to 2004.
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series
Chief Compliance Officer and Funds, Rydex Variable Trust, and Rydex
Assistant Secretary (1967) Dynamic Funds, 2004 to present;
Assistant Secretary of Rydex Series
Funds, Rydex Variable Trust, and Rydex
Dynamic Funds, 2000 to present;
Assistant Secretary of Rydex ETF Trust,
2002 to present. Secretary of Rydex
Capital Partners SPhinX Fund, 2003 to
present. Vice President of Compliance of
Rydex Fund Services, Inc., 2000 to
present; Vice President Fund
Administration, Chase Global Funds
Services Co., a division of Chase
Manhattan Bank NA, 1994 to 1999.
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST,
WITHIN THE MEANING OF SECTION 2(a)(19) OF THE 1940 ACT, INASMUCH AS THIS
PERSON IS AFFILIATED WITH THE ADVISOR.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 79
[RydexInvestments LOGO]
Essential for modern markets(TM)
9601 Blackwell Road
Suite 500
Rockville, MD 20850
800.820.0888
www.rydexinvestments.com
THE RYDEX SERIES FUNDS
Strategic Funds
Semi-Annual Report
SEPTEMBER 30, 2004
CORE EQUITY FUND
SECTOR ROTATION FUND
[RydexInvestments LOGO]
RSTF-SEMI-0904 Essential for modern markets(TM)
This report and the financial statements contained herein are submitted for the
general information of our shareholders. The report is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ................................................. 2
ABOUT SHAREHOLDERS FUND'S EXPENSES ......................................... 3
FUND PROFILES .............................................................. 5
SCHEDULES OF INVESTMENTS ................................................... 7
STATEMENTS OF ASSETS AND LIABILITIES ....................................... 19
STATEMENTS OF OPERATIONS ................................................... 20
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 21
FINANCIAL HIGHLIGHTS ....................................................... 22
NOTES TO FINANCIAL STATEMENTS .............................................. 23
UNAUDITED PROXY VOTING INFORMATION ......................................... 29
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................... 30
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The U.S. economy reached a more mature phase of the business cycle during the
six-month period ending September 30, 2004. This phenomenon was marked by lower
realized and forecasted gross domestic product (GDP) growth rates, reduced
forecasts for future corporate earnings growth and a cumulative reported one
million jobs created during the period. The Federal Reserve (Fed), observing
these changes, raised the Fed Funds rate three times between June 30 and
September 21. Inflation, as measured both by the Consumer Price Index (+1.7%)
and Producer Price Index (+1.9%), rose during this time period.
Equity markets moved in a tight trading range over the period. Most broad-based
equity indices ended the period with slightly negative returns. The S&P 500(R)
Index was down slightly, returning -0.18% over the period. Large-cap stocks
tended to outperform small-cap stocks and the S&P 500 outperformed the S&P
MidCap 400(TM) and Russell 2000(R) indices, which returned -1.15% and -2.40%,
respectively. Political and economic uncertainty led investors to return to the
relative safety of large-cap stocks. The S&P 500 also outperformed the Nasdaq
100 Index(R), which posted a return of -1.79%.
There was good news, though. Between the end of March and September, the
unemployment rate experienced a slight decline, moving from 5.6% to 5.4%. The
improvement was driven in part by a 2.8% rebound in manufacturing payrolls.
RYDEX CORE EQUITY FUND
During the last two quarters, the S&P 500 meandered in an extremely tight
trading range (+2% to -5%) before finishing the period down 0.18%. A lack of
strong conviction in market direction was also seen in VIX, a measure of market
volatility, as it decreased over 20% in the last half of the year. Growth
outperformed value (1.5% vs. 0.3%) in the second quarter, but those roles
reversed (-5.5% vs. 0.8%) in the third quarter. During the last two quarters,
the Russell 3000 Value Index was up 1.12% while the Russell 3000 Growth Index
was down 4.06%. Unfortunately, Rydex Core Equity Fund H-Class (-1.18%) was
unable to brave all of these style influences and ended up underperforming the
Russell 3000 Index (-0.59%) by 0.59%.
RYDEX SECTOR ROTATION FUND
On the backs of oil prices--which increased almost 40% in the last six
months--the energy sector (+19.4%) greatly outperformed the S&P 500. Industrials
finished a distant second, up 8.4%. Other sectors that performed well included
basic materials, which was up 6.2%, telecommunication services (+5.4%) and
utilities (+5.1%). Information technology and consumer staples experienced some
difficult times, finishing down 7.3% and down 5.1%, respectively. Health care
(-2.8%), financials (-2%) and consumer discretionary (-1.5%) also underperformed
the S&P 500.
Though five sectors had positive returns and five sectors had negative returns,
investors should not assume that sector investing was flat. Not only was the
spread between the best and worst sector (26.7%) fairly large, but the sectors
that outperformed only represent 27% of the S&P 500's market capitalization.
Rydex Sector Rotation Fund H-Class, which uses a momentum strategy to pick the
best industries in which to invest, underperformed the S&P 500 by 3.55% despite
having a large overweight in the energy sector. The underperformance was largely
due to a non-trending range market that rendered momentum strategies temporarily
ineffective.
As always, we 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
President
2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES
- --------------------------------------------------------------------------------
All mutual funds have operating expenses and it is important for our
shareholders to understand the impact of costs on their investments. As a
shareholder of the fund, you may incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, reinvested
dividends, or other distributions; redemption fees; and exchange fees; and (2)
ongoing costs, including management fees, administrative services, and
shareholder reports, among others. Operating expenses, which are deducted from a
fund's gross income, reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 made at the beginning of the
period and held for the entire six-month period beginning March 31, 2004 and
ending September 30, 2004.
The following table illustrates your fund's costs in two ways:
1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the actual
expenses that you paid over the period. The "Ending Account Value" shown
is derived from the fund's actual return, and the fourth column shows the
dollar amount that would have been paid by an investor who started with
$1,000 in the fund. You may use the information here, together with the
amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the
number given for your fund under the heading "Expenses Paid During
Period."
Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are
charged an annual $15 maintenance fee. Upon liquidating your retirement
account, a $15 account-closing fee will be taken from the proceeds of your
redemption.
2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your fund's cost with those of other mutual funds. The table
provides information about hypothetical account values and hypothetical
expenses based on the fund's actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid during the
period. In addition, certain retirement plans such as IRA, Roth IRA and
403(b) accounts are charged an annual $15 maintenance fee. Upon
liquidating your retirement account, a $15 account-closing fee will be
taken from the proceeds of your redemption. The example is useful in
making comparisons because the Securities Exchange Commission requires all
mutual funds to calculate expenses based on the 5% return. You can assess
your fund's costs by comparing this hypothetical example with the
hypothetical examples that appear in shareholder reports of other funds.
The calculations above assume no shares were bought or sold during the period.
Your actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
Note that the expenses shown in the table are meant to highlight and help you
compare ongoing costs only and do not reflect any transactional costs which may
be incurred by some of the fund's classes. These costs may include, but are not
limited to, sales charges (loads), redemption fees, and exchange fees.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED)
- --------------------------------------------------------------------------------
You can find more information about the fund's expenses, including annual
expense ratios for the past five years, in the Financial Highlights section of
this report. For additional information on operating expenses and other
shareholder costs, please refer to the appropriate fund prospectus.
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
CORE EQUITY FUND
A-Class 1.56% $1,000.00 $988.20 $ 7.78
C-Class 2.30% 1,000.00 983.90 11.44
H-Class 1.55% 1,000.00 988.20 7.73
SECTOR ROTATION FUND
A-Class 1.65% 1,000.00 961.70 8.11
C-Class 2.40% 1,000.00 958.30 11.78
H-Class 1.65% 1,000.00 962.70 8.12
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN
CORE EQUITY FUND
A-Class 1.56% 1,000.00 1,041.98 8.02
C-Class 2.30% 1,000.00 1,038.18 11.82
H-Class 1.55% 1,000.00 1,042.03 7.97
SECTOR ROTATION FUND
A-Class 1.65% 1,000.00 1,041.52 8.48
C-Class 2.40% 1,000.00 1,037.67 12.33
H-Class 1.65% 1,000.00 1,041.52 8.48
* EXPENSES ARE EQUAL TO THE FUND'S ANNULAIZED EXPENSE RATIO, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF
DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365.
+ ANNUALIZED
4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES
- --------------------------------------------------------------------------------
CORE EQUITY FUND
OBJECTIVE: To provide long-term capital appreciation by investing in a broad
mix of equity securities of companies representative of the total
U.S. stock market. The fund pursues its investment objective by
investing through a combination of quantitive value-oriented and
growth-oriented startegies across the small, medium and large
market capitalization ranges.
[THE FOLLOWING TABLE WAS REPRESENTED BY A CHART IN THE PRINTED MATERIAL.]
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
FUTURES CONTRACTS 18.7%
OTHER 8.7%
CONSUMER STAPLES 5.1%
ENERGY 5.3%
INDUSTRIALS 9.4%
HEALTH CARE 10.6%
CONSUMER DISCRETIONARY 11.7%
INFORMATION TECHNOLOGY 13.0%
FINANCIALS 17.4%
CORE EQUITY FUND
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
A-Class March 31, 2004
C-Class September 23, 2002
H-Class September 23, 2002
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
General Electric Co. 1.1%
Exxon Mobil Corp. 1.0%
Pfizer, Inc. 1.0%
Microsoft Corp. 0.8%
Johnson & Johnson 0.7%
Citigroup, Inc. 0.7%
International Business Machines Corp. 0.7%
Intel Corp. 0.6%
Verizon Communications, Inc. 0.5%
Bank of America Corp. 0.5%
- --------------------------------------------------------------------------------
Top Ten Total 7.6%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
OBJECTIVE: To provide long-term capital appreciation by moving its
investments among different sectors or industries.
[THE FOLLOWING TABLE WAS REPRESENTED BY A CHART IN THE PRINTED MATERIAL.]
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
HEALTH CARE 7.4%
CONSUMER STAPLES 7.6%
INFORMATION TECHNOLOGY 9.4%
FINANCIALS 14.9%
ENERGY 17.3%
CONSUMER DISCRETIONARY 17.5%
INDUSTRIALS 23.8%
SECTOR ROTATION FUND
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
A-Class March 31, 2004
C-Class March 22, 2002
H-Class March 22, 2002
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Yahoo!, Inc. 5.0%
Masco Corp. 2.8%
Gillette Co. 2.6%
WW Grainger, Inc. 2.1%
American Express Co. 2.1%
American Standard Cos., Inc. 1.9%
Avon Products, Inc. 1.8%
Fastenal Co. 1.7%
MSC Industrial Direct Co. -- Class A 1.4%
MBNA Corp. 1.4%
- --------------------------------------------------------------------------------
Top Ten Total 22.8%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 81.3%
FINANCIALS 17.4%
INSURANCE 7.6%
American International Group, Inc. 4,543 $ 308,879
Allstate Corp. 4,020 192,920
Ambac Financial Group, Inc. 2,152 172,052
Prudential Financial, Inc. 3,630 170,755
Progressive Corp. 1,966 166,618
Loews Corp. 2,810 164,385
MBIA, Inc. 2,808 163,454
Lincoln National Corp. 3,385 159,095
Hartford Financial Services
Group, Inc. 2,460 152,348
MetLife, Inc. 3,849 148,764
Chubb Corp.+ 2,080 146,182
Cincinnati Financial Corp. 3,462 142,704
Jefferson-Pilot Corp. 2,808 139,445
SAFECO Corp.+ 2,994 136,676
Old Republic International Corp. 5,428 135,863
UICI 3,920 128,341
Conseco, Inc.* 7,112 125,598
W.R. Berkley Corp. 2,946 124,203
AmerUs Group Co.+ 2,819 115,579
Mercury General Corp. 2,152 113,819
Stancorp Financial Group, Inc. 1,591 113,279
Unitrin, Inc. 2,710 112,655
Nationwide Financial Services 3,170 111,299
Ohio Casualty Corp.* 5,307 111,075
Reinsurance Group of America 2,689 110,787
HCC Insurance Holdings, Inc.+ 3,640 109,746
Selective Insurance Group, Inc. 2,920 108,624
American Financial Group, Inc./OH+ 3,550 106,109
Philadelphia Consolidated
Holding Co.* 1,869 103,019
Transatlantic Holdings, Inc. 1,872 101,743
Delphi Financial Group, Inc. --
Class A 2,517 101,108
Horace Mann Educators Corp. 5,739 100,892
American National Insurance Co. 1,030 99,694
CNA Financial Corp.* 4,117 98,849
National Western Life
Insurance Co. -- Class A* 604 98,392
Infinity Property & Casualty Corp. 3,329 98,305
Midland Co. 3,323 90,884
Safety Insurance Group, Inc. 4,028 89,542
Zenith National Insurance Corp. 2,114 89,443
Penn-America Group, Inc. 6,435 87,580
United Fire & Casualty Co. 1,500 85,995
Donegal Group, Inc. -- Class A 4,428 85,018
Independence Holding Co. 4,390 77,571
Ceres Group, Inc.* 10,573 57,623
RLI Corp. 1,414 53,096
Enstar Group, Inc.* 805 39,896
Baldwind & Lyons, Inc. -- Class B 1,099 27,739
EMC INS Group, Inc. 1,261 26,494
-----------
TOTAL INSURANCE 5,604,137
-----------
REAL ESTATE 2.2%
Equity Office Properties Trust+ 6,363 173,392
Archstone-Smith Trust 4,586 145,101
CBL & Associates Properties, Inc.+ 1,866 113,733
LNR Property Corp. 1,812 112,181
Annaly Mortgage Mgt.+ 6,540 112,030
Highwoods Properties, Inc. 4,532 111,532
Trammell Crow Co.* 6,948 109,223
Lexington Corporate
Properties Trust 4,935 107,139
Kramont Realty Trust 5,437 101,128
Innkeepers USA Trust 8,056 100,217
LTC Properties, Inc.+ 5,054 90,416
Capstead Mortgage Corp.+ 6,462 80,452
Friedman Billings Ramsey
Group, Inc. -- Class A+ 4,117 78,635
Catellus Development Corp. 2,339 62,007
Saxon Capital, Inc.* 2,520 54,180
National Health Realty, Inc. 2,090 39,814
Camden Property Trust 187 8,639
-----------
TOTAL REAL ESTATE 1,599,819
-----------
BANKS 2.0%
Bank of America Corp. 8,258 357,819
Wachovia Corp.+ 5,702 267,709
Wells Fargo & Co. 2,654 158,258
PNC Financial Services Group, Inc. 2,753 148,937
KeyCorp 4,424 139,798
Greater Bay Bancorp+ 3,122 89,757
Central Pacific Financial Corp. Co. 2,694 74,137
UnionBanCal Corp. 1,123 66,493
Santander BanCorp 1,812 45,300
Century Bancorp, Inc. 1,400 44,450
Westcorp 1,030 43,796
U.S. Bancorp 1,376 39,766
Signature Bank/New York NY* 806 21,561
-----------
TOTAL BANKS 1,497,781
-----------
THRIFTS & MORTGAGE FINANCE 1.8%
Countrywide Financial Corp. 4,522 178,122
Golden West Financial Corp. 1,278 141,794
New Century Financial Corp. 2,215 133,387
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
PMI Group, Inc. 3,090 $ 125,392
R&G Financial Corp. -- Class B 2,819 108,954
Ocwen Financial Corp.*+ 10,775 98,591
Capital Crossing Bank* 3,625 92,220
United Community Financial
Corp./OH 7,855 89,311
NetBank, Inc. 8,751 87,598
Fannie Mae 1,180 74,812
Berkshire Hills Bancorp, Inc. 1,712 63,258
Provident Financial Hldgs 1,900 55,100
BankAtlantic Bancorp, Inc. --
Class A 1,108 20,299
Freddie Mac 282 18,398
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 1,287,236
-----------
CAPITAL MARKETS 1.7%
Merrill Lynch & Co., Inc. 4,557 226,574
Bear Stearns Cos., Inc.+ 1,872 180,030
Lehman Brothers Holdings, Inc. 2,120 169,006
State Street Corp.+ 3,146 134,366
Blackrock, Inc. 1,685 123,831
Janus Capital Group, Inc. 8,890 120,993
A.G. Edwards, Inc.+ 3,462 119,855
Nuveen Investments, Inc. -- Class A 3,837 113,575
Morgan Stanley 787 38,799
Goldman Sachs Group, Inc. 196 18,275
-----------
TOTAL CAPITAL MARKETS 1,245,304
-----------
DIVERSIFIED FINANCIALS 1.4%
Citigroup, Inc. 11,320 499,438
J.P. Morgan Chase & Co. 6,628 263,331
Chicago Mercantile
Exchange Holdings, Inc.+ 936 150,977
Instinet Group, Inc.* 22,740 114,382
eSpeed, Inc. -- Class A* 2,819 27,711
-----------
TOTAL DIVERSIFIED FINANCIALS 1,055,839
-----------
CONSUMER FINANCE 0.7%
MBNA Corp. 7,373 185,800
Capital One Financial Corp.+ 2,085 154,081
Student Loan Corp. 749 106,171
American Express Co.+ 885 45,542
World Acceptance Corp.* 1,200 27,900
-----------
TOTAL CONSUMER FINANCE 519,494
-----------
TOTAL FINANCIALS 12,809,610
-----------
INFORMATION TECHNOLOGY 13.0%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.3%
Intel Corp. 21,698 435,262
Texas Instruments, Inc. 9,839 209,374
Applied Materials, Inc.* 10,880 179,411
National Semiconductor Corp.*+ 9,254 143,345
OmniVision Technologies, Inc.*+ 9,465 133,930
RF Micro Devices, Inc.* 19,435 123,218
International Rectifier Corp.* 3,270 112,161
Varian Semiconductor Equipment
Associates, Inc.* 3,625 112,013
Silicon Laboratories, Inc.*+ 3,369 111,480
Micrel, Inc.* 9,969 103,777
DSP Group, Inc.* 4,834 101,756
Atmel Corp.*+ 27,976 101,273
MKS Instruments, Inc.* 6,545 100,269
Advanced Micro Devices, Inc.*+ 7,299 94,887
ADE Corp.* 5,538 94,340
Kulicke & Soffa Industries, Inc.* 16,313 92,168
Entegris, Inc.*+ 7,351 61,307
Teradyne, Inc.* 3,369 45,145
Analog Devices, Inc.+ 1,082 41,960
Silicon Storage Technology, Inc.* 4,935 31,436
Pixelworks, Inc.* 2,212 22,142
Fairchild Semiconductor
International, Inc.* 655 9,281
Lattice Semiconductor Corp.* 1,108 5,440
-----------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 2,465,375
-----------
SOFTWARE 2.2%
Microsoft Corp. 20,347 562,595
Symantec Corp.*+ 3,047 167,219
Computer Associates
International, Inc. 5,680 149,384
BMC Software, Inc.* 8,329 131,681
McAfee, Inc.*+ 6,460 129,846
Ulticom, Inc.* 8,660 127,908
Compuware Corp.* 23,658 121,839
THQ, Inc.*+ 5,126 99,752
Opnet Technologies, Inc.* 3,726 38,229
Veritas Software Corp.* 1,560 27,768
Netscout Systems, Inc.* 4,761 25,376
Activision, Inc.* 350 4,855
-----------
TOTAL SOFTWARE 1,586,452
-----------
COMPUTERS & PERIPHERALS 2.1%
International Business
Machines Corp. 5,618 481,687
Hewlett-Packard Co.+ 13,930 261,188
EMC Corp./MA*+ 16,235 187,352
NCR Corp.* 2,864 142,026
Dell, Inc.*+ 3,637 129,477
Overland Storage, Inc.* 8,258 115,529
Storage Technology Corp.*+ 4,492 113,468
Intergraph Corp.* 3,827 103,980
Electronics for Imaging*+ 1,410 22,898
Brocade Communications
Systems, Inc.* 2,819 15,927
-----------
See Notes to Financial Statements.
8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TOTAL COMPUTERS & PERIPHERALS $ 1,573,532
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.8%
Jabil Circuit, Inc.*+ 5,895 135,585
Tektronix, Inc.+ 3,920 130,340
Molex, Inc. 4,305 128,375
Mettler Toledo International, Inc.* 2,527 119,325
Vishay Intertechnology, Inc.*+ 8,770 113,133
Avnet, Inc.*+ 6,448 110,390
Global Imaging Systems, Inc.* 3,524 109,526
Coherent, Inc.* 3,827 99,272
Park Electrochemical Corp. 4,230 89,676
Technitrol, Inc.* 4,129 80,515
CTS Corp. 6,042 76,129
TTM Technologies, Inc.* 7,955 70,720
LeCroy Corp.* 3,625 60,574
-----------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 1,323,560
-----------
COMMUNICATIONS EQUIPMENT 1.7%
Motorola, Inc. 12,840 231,634
Cisco Systems, Inc.* 12,291 222,467
Harris Corp.+ 2,601 142,899
Polycom, Inc.* 5,890 116,740
Aspect Communications Corp.* 11,581 114,999
Seachange International, Inc.* 4,630 74,034
CommScope, Inc.*+ 3,122 67,435
Tellabs, Inc.*+ 6,810 62,584
Qualcomm, Inc. 1,376 53,719
Anaren, Inc.* 3,398 45,737
Carrier Access Corp.* 6,344 44,091
C-COR, Inc.* 2,600 21,970
Interdigital Communications Corp.* 907 14,802
-----------
TOTAL COMMUNICATIONS EQUIPMENT 1,213,111
-----------
INTERNET SOFTWARE & SERVICES 0.9%
ValueClick, Inc.* 12,543 118,406
EarthLink, Inc.*+ 10,875 112,013
AsiaInfo Holdings, Inc.* 19,928 97,249
Keynote Systems, Inc.* 6,545 92,677
Digital Insight Corp.*+ 6,344 86,469
United Online, Inc.* 7,049 67,811
Sonicwall, Inc.* 6,540 44,210
InfoSpace, Inc.* 665 31,514
-----------
TOTAL INTERNET SOFTWARE
& SERVICES 650,349
-----------
IT CONSULTING & SERVICES 0.8%
Fiserv, Inc.* 4,212 146,830
Sabre Holdings Corp.+ 5,054 123,975
Perot Systems Corp. -- Class A* 7,653 122,907
Acxiom Corp. 5,050 119,887
DST Systems, Inc.* 1,123 49,940
Pegasus Solutions, Inc.* 2,618 31,207
Covansys Corp.* 504 5,816
-----------
TOTAL IT CONSULTING & SERVICES 600,562
-----------
OFFICE ELECTRONICS 0.2%
Xerox Corp.*+ 12,800 180,224
-----------
TOTAL OFFICE ELECTRONICS 180,224
-----------
TOTAL INFORMATION TECHNOLOGY 9,593,165
-----------
CONSUMER DISCRETIONARY 11.7%
MEDIA 3.0%
Comcast Corp. -- Class A*+ 9,338 263,705
Walt Disney Co. 10,100 227,755
McGraw-Hill Cos., Inc. 1,867 148,781
Lamar Advertising Co.* 2,901 120,711
Fox Entertainment
Group, Inc. -- Class A* 4,325 119,976
Reader's Digest Association, Inc. 7,955 116,064
Belo Corp. -- Class A 5,054 113,917
RH Donnelley Corp.*+ 2,215 109,332
McClatchy Co. -- Class A 1,497 106,033
Hearst-Argyle Television, Inc. 4,305 105,257
Harris Interactive, Inc.* 14,904 98,217
Pulitzer, Inc. 1,913 94,502
World Wrestling Entertainment, Inc. 7,452 91,063
Lin TV Corp. -- Class A*+ 4,632 90,231
Cumulus Media, Inc. -- Class A* 6,234 89,707
Time Warner, Inc.*+ 5,211 84,106
Getty Images, Inc.* 1,497 82,784
Sinclair Broadcast
Group, Inc. -- Class A 11,278 82,329
Mediacom Communications Corp.* 5,538 36,163
Viacom, Inc. -- Class B 983 32,990
Journal Communications,
Inc. -- Class A 1,712 30,029
Thomas Nelson, Inc. 3 59
-----------
TOTAL MEDIA 2,243,711
-----------
SPECIALTY RETAIL 2.8%
Best Buy Co., Inc. 2,830 153,499
Circuit City Stores, Inc. 8,960 137,447
TJX Cos., Inc.+ 6,193 136,494
The Gap, Inc.+ 6,653 124,411
Barnes & Noble, Inc.*+ 3,229 119,473
Home Depot, Inc. 3,047 119,442
Borders Group, Inc. 4,770 118,296
Regis Corp. 2,808 112,938
Too, Inc.* 5,840 105,529
Charming Shoppes, Inc.* 14,702 104,678
AnnTaylor Stores Corp.*+ 4,398 102,913
Burlington Coat Factory
Warehouse Corp. 4,733 100,482
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Dress Barn, Inc.* 5,538 $ 96,638
Hollywood Entertainment Corp.* 9,667 95,413
Stage Stores, Inc.* 2,745 93,934
Haverty Furniture Cos., Inc. 5,337 93,611
Pep Boys-Manny Moe & Jack+ 6,545 91,630
American Eagle Outfitters, Inc.+ 2,433 89,656
HOT Topic, Inc.*+ 3,827 65,212
Foot Locker, Inc.+ 877 20,785
Petsmart, Inc.+ 187 5,309
-----------
TOTAL SPECIALTY RETAIL 2,087,790
-----------
HOTELS RESTAURANTS & LEISURE 1.7%
McDonald's Corp. 7,250 203,218
Starwood Hotels & Resorts
Worldwide, Inc. 3,743 173,750
International Game Technology, Inc. 4,424 159,043
MGM Mirage, Inc.* 2,808 139,417
Prime Hospitality Corp.* 10,473 127,457
Caesars Entertainment, Inc.* 6,832 114,094
Marcus Corp. 5,035 98,032
Bluegreen Corp.* 7,855 87,426
Six Flags, Inc.* 15,105 82,171
Buffalo Wild Wings, Inc.* 1,209 33,900
Speedway Motorsports, Inc. 504 16,798
Krispy Kreme Doughnuts, Inc.*+ 1,108 14,027
-----------
TOTAL HOTELS RESTAURANTS & LEISURE 1,249,333
-----------
HOUSEHOLD DURABLES 1.3%
Black & Decker Corp.+ 1,778 137,688
Ryland Group, Inc.+ 1,344 124,535
M.D.C. Holdings, Inc. 1,590 116,229
Stanley Works+ 2,710 115,256
Lennar Corp. -- Class A+ 2,289 108,957
Kimball International, Inc. -- Class B 6,742 93,579
Avatar Holdings, Inc.* 1,814 77,004
NVR, Inc.* 133 73,283
Harman International Industries, Inc. 655 70,576
Levitt Corp. -- Class A 806 18,909
Centex Corp. 359 18,115
-----------
TOTAL HOUSEHOLD DURABLES 954,131
-----------
TEXTILES & APPAREL 0.8%
Nike, Inc. -- Class B+ 1,890 148,932
Jones Apparel Group, Inc. 3,556 127,305
Polo Ralph Lauren Corp. 2,994 108,892
K-Swiss, Inc. -- Class A+ 4,935 94,999
Unifirst Corp./MA 1,710 48,906
Timberland Co. -- Class A*+ 842 47,825
-----------
TOTAL TEXTILES & APPAREL 576,859
-----------
AUTO COMPONENTS 0.7%
Autoliv, Inc.+ 3,057 123,503
BorgWarner, Inc. 2,524 109,264
American Axle &
Manufacturing Holdings, Inc.+ 3,173 92,842
Bandag, Inc. 2,114 92,593
Cooper Tire & Rubber Co. 3,820 77,049
Dana Corp. 1,404 24,837
Lear Corp. 2 109
-----------
TOTAL AUTO COMPONENTS 520,197
-----------
AUTOMOBILES 0.6%
Ford Motor Co.+ 11,895 167,125
General Motors Corp. 3,736 158,705
Monaco Coach Corp. 4,431 95,931
-----------
TOTAL AUTOMOBILES 421,761
-----------
LEISURE EQUIPMENT & PRODUCTS 0.4%
Brunswick Corp. 3,180 145,517
Marvel Enterprises, Inc.*+ 7,580 110,365
Arctic Cat, Inc. 806 20,916
Leapfrog Enterprises, Inc.*+ 806 16,321
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 293,119
-----------
INTERNET & CATALOG RETAIL 0.2%
1-800-FLOWERS.com, Inc.* 11,581 96,122
Orbitz, Inc.*+ 1,007 27,391
Netflix, Inc.*+ 936 14,433
eBay, Inc.*+ 98 9,010
-----------
TOTAL INTERNET & CATALOG RETAIL 146,956
-----------
MULTILINE RETAIL 0.2%
Dillard's, Inc./AR -- Class A 5,054 99,766
Kmart Holding Corp.*+ 281 24,579
-----------
TOTAL MULTILINE RETAIL 124,345
-----------
TOTAL CONSUMER DISCRETIONARY 8,618,202
-----------
HEALTH CARE 10.6%
HEALTH CARE PROVIDERS & SERVICES 4.1%
UnitedHealth Group, Inc. 3,331 245,628
CIGNA Corp. 2,527 175,955
WellPoint Health Networks, Inc.* 1,480 155,533
Cardinal Health, Inc. 3,539 154,902
Caremark Rx, Inc.*+ 4,817 154,481
HCA, Inc. 4,031 153,783
Aetna, Inc. 1,475 147,397
Coventry Health Care, Inc.*+ 2,625 140,096
McKesson Corp.+ 5,240 134,406
Omnicare, Inc. 4,305 122,090
Laboratory Corporation of
America Holdings*+ 2,710 118,481
Community Health Systems, Inc.* 4,398 117,339
Service Corporation International/US* 18,320 113,767
WellChoice, Inc.* 2,990 111,617
Magellan Health Services, Inc.* 2,920 106,755
Andrx Corp.* 4,590 102,632
Select Medical Corp. 7,542 101,289
See Notes to Financial Statements.
10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
DaVita, Inc.* 3,182 $ 99,119
Accredo Health, Inc.* 4,117 97,038
PDI, Inc.* 3,594 97,002
Sierra Health Services, Inc.*+ 1,810 86,753
Priority Healthcare Corp. --
Class B* 4,230 85,234
LifePoint Hospitals, Inc.* 1,710 51,317
Cerner Corp.*+ 1,010 43,693
Alderwoods Group, Inc.* 2,520 24,772
eResearch Technology, Inc.* 1,309 17,449
Quest Diagnostics, Inc. 93 8,204
Amedisys, Inc.* 201 6,020
IDX Systems Corp.* 100 3,245
Kindred Healthcare, Inc.* 4 98
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,976,095
-----------
PHARMACEUTICALS 3.2%
Pfizer, Inc. 23,297 712,888
Johnson & Johnson, Inc. 9,637 542,852
Abbott Laboratories 6,685 283,177
Mylan Laboratories, Inc.+ 8,141 146,538
Forest Laboratories, Inc.* 3,146 141,507
Merck & Co., Inc. 3,539 116,787
Perrigo Co. 5,538 113,806
Bradley Pharmaceuticals, Inc.*+ 3,927 79,914
Pozen, Inc.* 8,358 73,049
Eli Lilly & Co. 983 59,029
Par Pharmaceutical Cos., Inc.*+ 1,610 57,847
Wyeth 589 22,029
Bristol-Myers Squibb Co. 577 13,658
First Horizon Pharmaceutical* 680 13,607
Atrix Laboratories, Inc.* 101 3,100
-----------
TOTAL PHARMACEUTICALS 2,379,788
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 2.4%
Becton Dickinson & Co. 2,797 144,605
Thermo Electron Corp.* 5,050 136,451
Bausch & Lomb, Inc.+ 1,942 129,046
PerkinElmer, Inc. 6,450 111,069
Conmed Corp.* 4,028 105,936
Haemonetics Corp./MA* 3,122 102,527
Matthews International
Corp. -- Class A 3,021 102,351
Sola International, Inc.* 5,035 95,917
Molecular Devices Corp.* 3,927 92,559
Hologic, Inc.* 4,733 91,205
ICU Medical, Inc.* 3,424 89,161
Varian, Inc.* 2,114 80,057
Kensey Nash Corp.* 3,021 79,120
Visx, Inc.* 3,625 74,675
Dade Behring Holdings, Inc.* 1,308 72,879
Respironics, Inc.* 1,311 70,060
Sonic Innovations, Inc.* 14,299 65,203
Medtronic, Inc. 1,082 56,156
Ocular Sciences, Inc.*+ 700 33,579
Laserscope* 705 14,290
Nutraceutical International Corp.* 403 5,678
Medical Action Industries, Inc.* 90 1,497
Inamed Corp.* 4 191
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,754,212
-----------
BIOTECHNOLOGY 0.9%
Applera Corp. -- Applied
Biosystems Group 6,363 120,070
Charles River Laboratories
International, Inc.* 2,620 119,996
Digene Corp.* 3,625 94,105
Genencor International, Inc.* 5,639 90,506
Amgen, Inc.*+ 1,475 83,603
Indevus Pharmaceuticals, Inc.* 10,875 77,104
United Therapeutics Corp.* 1,612 56,307
Orasure Technologies, Inc.* 6,847 43,136
-----------
TOTAL BIOTECHNOLOGY 684,827
-----------
TOTAL HEALTH CARE 7,794,922
-----------
INDUSTRIALS 9.5%
MACHINERY 2.2%
Eaton Corp. 2,620 166,134
Parker Hannifin Corp. 2,620 154,213
Deere & Co. 2,360 152,338
Cummins, Inc. 1,778 131,376
Pentair, Inc.+ 3,740 130,563
Oshkosh Truck Corp. 2,246 128,157
Briggs & Stratton Corp.+ 1,497 121,556
Kennametal, Inc. 2,618 118,203
Cascade Corp. 3,222 89,443
Reliance Steel & Aluminum Co. 2,215 87,935
Danaher Corp. 1,671 85,689
Terex Corp.* 1,910 82,894
Astec Industries, Inc.* 4,330 82,790
EnPro Industries, Inc.* 1,997 48,208
Toro Co. 705 48,151
Mueller Industries, Inc. 302 12,971
Harsco Corp. 3 135
-----------
TOTAL MACHINERY 1,640,756
-----------
AEROSPACE & DEFENSE 1.7%
Boeing Co.+ 4,227 218,198
General Dynamics Corp. 1,570 160,297
Northrop Grumman Corp.+ 2,950 157,323
L-3 Communications Holdings, Inc. 2,060 138,020
Curtiss-Wright Corp. 1,913 109,481
Esterline Technologies Corp.* 3,122 95,502
Heico Corp. 5,327 94,181
Orbital Sciences Corp.* 7,250 82,795
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Moog, Inc. -- Class A* 1,410 $ 51,183
Invision Technologies, Inc.* 1,007 45,305
Aviall, Inc.* 1,700 34,680
United Technologies Corp. 196 18,302
Armor Holdings, Inc.* 201 8,364
Engineered Support Systems, Inc. 101 4,610
-----------
TOTAL AEROSPACE & DEFENSE 1,218,241
-----------
COMMERCIAL SERVICES & SUPPLIES 1.5%
Cendant Corp.+ 7,459 161,114
Cintas Corp. 2,994 125,868
ARAMARK Corp. -- Class B 4,960 119,734
IKON Office Solutions, Inc.+ 9,452 113,613
Corrections Corporation of America* 3,075 108,732
Insurance Auto Auctions, Inc.* 5,337 91,530
Bowne & Co., Inc. 6,948 90,255
Central Parking Corp. 4,924 65,095
Gevity HR, Inc. 2,819 43,356
Spherion Corp.* 5,237 40,953
Resources Connection, Inc.* 907 34,267
Universal Technical Institute, Inc.* 907 27,373
Sotheby's Holdings, Inc. -- Class A* 1,511 23,753
Compx International, Inc.* 600 9,600
Consolidated Graphics, Inc.* 200 8,380
Career Education Corp.* 281 7,989
NCO Group, Inc.* 3 81
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,071,693
-----------
INDUSTRIAL CONGLOMERATES 1.4%
General Electric Co. 24,590 825,732
Alleghany Corp.* 500 136,450
3M Co. 787 62,937
-----------
TOTAL INDUSTRIAL CONGLOMERATES 1,025,119
-----------
ELECTRICAL EQUIPMENT 1.0%
Emerson Electric Co. 2,753 170,383
Hubbell, Inc. -- Class B 2,620 117,454
AMETEK, Inc.+ 3,840 116,429
Woodward Governor Co. 1,612 108,794
Penn Engineering &
Manufacturing Corp. 4,622 86,062
Vicor Corp. 7,855 79,414
Global Power Equipment
Group, Inc.* 6,344 47,009
Thomas & Betts Corp. 907 24,326
Ultralife Batteries, Inc.* 101 1,027
Plug Power, Inc.* 1 6
-----------
TOTAL ELECTRICAL EQUIPMENT 750,904
-----------
AIR FREIGHT & COURIERS 0.5%
United Parcel Service, Inc. -- Class B 2,949 223,888
CNF, Inc. 2,713 111,206
EGL, Inc.*+ 1,108 33,528
HUB Group, Inc. -- Class A* 504 18,774
-----------
TOTAL AIR FREIGHT & COURIERS 387,396
-----------
ROAD & RAIL 0.5%
Burlington Northern Santa Fe Corp. 5,335 204,384
Kansas City Southern* 6,948 105,401
Overnite Corp. 1,612 50,665
SCS Transportation, Inc.* 1,108 20,986
-----------
TOTAL ROAD & RAIL 381,436
-----------
TRADING COMPANIES & DISTRIBUTORS 0.4%
MSC Industrial Direct Co. -- Class A 3,462 117,985
Hughes Supply, Inc. 3,744 112,582
Watsco, Inc. 400 12,012
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 242,579
-----------
BUILDING PRODUCTS 0.2%
Masco Corp.+ 4,372 150,965
Apogee Enterprises, Inc.+ 201 2,599
-----------
TOTAL BUILDING PRODUCTS 153,564
-----------
CONSTRUCTION & ENGINEERING 0.1%
Dycom Industries, Inc.* 1,600 45,424
Comfort Systerms USA, Inc.* 6,142 40,537
-----------
TOTAL CONSTRUCTION & ENGINEERING 85,961
-----------
TOTAL INDUSTRIALS 6,957,649
-----------
ENERGY 5.3%
OIL & GAS 4.7%
Exxon Mobil Corp. 14,858 718,087
ConocoPhillips 3,182 263,629
Marathon Oil Corp. 5,212 215,151
ChevronTexaco Corp. 3,734 200,292
Valero Energy Corp.+ 2,430 194,910
Anadarko Petroleum Corp. 2,458 163,113
Devon Energy Corp. 2,261 160,554
Burlington Resources, Inc.+ 3,920 159,936
Amerada Hess Corp. 1,780 158,420
Sunoco, Inc.+ 2,110 156,098
Ashland, Inc. 2,433 136,443
Noble Energy, Inc. 2,340 136,281
Overseas Shipholding Group, Inc. 2,517 124,944
Frontier Oil Corp. 4,834 114,131
Remington Oil & Gas Corp.* 3,927 103,084
Tesoro Petroleum Corp.*+ 2,749 81,178
Harvest Natural Resources, Inc.* 4,230 70,218
Swift Energy Co.* 2,819 67,543
Whiting Petroleum Corp.* 2,114 64,265
Pioneer Natural Resources Co.+ 1,580 54,478
Newfield Exploration Co.* 650 39,806
Petroleum Development Corp.* 705 30,893
See Notes to Financial Statements.
12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Giant Industries, Inc.* 1,209 $ 29,379
Meridian Resource Corp.* 2,618 23,117
Resource America, Inc. -- Class A 810 19,108
Atlas America, Inc.* 101 2,199
-----------
TOTAL OIL & GAS 3,487,257
-----------
ENERGY EQUIPMENT & SERVICES 0.6%
BJ Services Co.+ 3,275 171,643
Maverick Tube Corp.*+ 3,726 114,798
Matrix Service Co.* 8,660 44,339
Universal Compression
Holdings, Inc.* 1,110 37,818
Patterson-UTI Energy, Inc. 1,123 21,415
National-Oilwell, Inc.* 374 12,290
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 402,303
-----------
TOTAL ENERGY 3,889,560
-----------
CONSUMER STAPLES 5.1%
FOOD PRODUCTS 1.2%
Sara Lee Corp. 6,960 159,106
H.J. Heinz Co. 3,723 134,102
Smithfield Foods, Inc.* 4,770 119,250
Del Monte Foods Co.* 10,668 111,907
Tyson Foods, Inc. -- Class A 6,820 109,256
Pilgrim's Pride Corp.+ 3,279 88,795
Seaboard Corp. 101 59,181
Cal-Maine Foods, Inc.+ 4,129 45,295
M&F Worldwide Corp.* 3,323 43,232
Sanderson Farms, Inc. 810 27,095
Alico, Inc. 1 43
-----------
TOTAL FOOD PRODUCTS 897,262
-----------
BEVERAGES 1.1%
Coca-Cola Co. 3,244 129,922
PepsiCo, Inc. 2,440 118,706
Adolph Coors Co. -- Class B 1,680 114,106
Coca-Cola Enterprises, Inc. 5,700 107,730
PepsiAmericas, Inc. 5,521 105,451
Robert Mondavi -- Class A* 2,517 98,591
Pepsi Bottling Group, Inc.+ 3,088 83,839
Boston Beer Co., Inc. -- Class A* 2,004 50,501
Anheuser-Busch Cos., Inc. 196 9,790
-----------
TOTAL BEVERAGES 818,636
-----------
PERSONAL PRODUCTS 0.8%
Gillette Co. 5,211 217,507
Avon Products, Inc.+ 3,637 158,864
Estee Lauder Cos., Inc. -- Class A 2,527 105,629
NBTY, Inc.* 3,369 72,636
-----------
TOTAL PERSONAL PRODUCTS 554,636
-----------
HOUSEHOLD PRODUCTS 0.8%
Procter & Gamble Co. 4,862 263,132
Kimberly-Clark Corp. 2,916 188,344
Energizer Holdings, Inc.*+ 2,150 99,115
-----------
TOTAL HOUSEHOLD PRODUCTS 550,591
-----------
FOOD & DRUG RETAILING 0.7%
Wal-Mart Stores, Inc. 4,862 258,658
Costco Wholesale Corp.+ 3,736 155,268
Arden Group, Inc. 1,007 85,595
CVS Corp. 589 24,815
Albertson's, Inc.+ 1,030 24,648
-----------
TOTAL FOOD & DRUG RETAILING 548,984
-----------
TOBACCO 0.5%
Altria Group, Inc. 7,569 356,046
-----------
TOTAL TOBACCO 356,046
-----------
TOTAL CONSUMER STAPLES 3,726,155
-----------
MATERIALS 3.8%
CHEMICALS 1.3%
Dow Chemical Co. 4,915 222,060
Monsanto Co. 4,492 163,599
Rohm & Haas Co.+ 3,650 156,840
NL Industries, Inc. 6,445 118,008
OM Group, Inc.*+ 3,122 114,140
Octel Corp. 3,021 64,166
Georgia Gulf Corp. 1,410 62,872
Terra Industries, Inc.*+ 5,035 43,603
Kronos Worldwide, Inc. 947 37,587
EI Du Pont de Nemours & Co. 98 4,194
NewMarket Corp.* 104 2,172
-----------
TOTAL CHEMICALS 989,241
-----------
METALS & MINING 1.2%
Alcoa, Inc. 5,580 187,432
Phelps Dodge Corp. 1,870 172,096
Nucor Corp.+ 1,680 153,502
Southern Peru Copper Corp. 2,620 135,349
Carpenter Technology Corp. 2,076 99,108
Metal Management, Inc.* 5,035 91,536
Steel Dynamics, Inc.+ 504 19,465
Century Aluminum Co.* 600 16,638
Oregon Steel Mills, Inc.* 504 8,382
United States Steel Corp.+ 187 7,035
-----------
TOTAL METALS & MINING 890,543
-----------
PAPER & FOREST PRODUCTS 0.9%
Georgia-Pacific Corp.+ 4,305 154,765
Weyerhaeuser Co. 2,250 149,580
MeadWestvaco Corp. 4,398 140,296
Louisiana-Pacific Corp.+ 4,921 127,700
Potlatch Corp.+ 2,618 122,549
-----------
TOTAL PAPER & FOREST PRODUCTS 694,890
-----------
CONTAINERS & PACKAGING 0.2%
Longview Fibre Co. 6,545 99,811
Chesapeake Corp. 1,309 31,442
-----------
TOTAL CONTAINERS & PACKAGING 131,253
-----------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
CORE EQUITY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 0.2%
Texas Industries, Inc.+ 2,316 $ 119,135
-----------
TOTAL CONSTRUCTION MATERIALS 119,135
-----------
TOTAL MATERIALS 2,825,062
-----------
UTILITIES 3.2%
ELECTRIC UTILITIES 2.2%
PG&E Corp.* 6,170 187,568
Progress Energy, Inc.+ 3,931 166,439
DTE Energy Co.+ 3,650 153,993
FirstEnergy Corp.+ 3,530 145,012
American Electric Power Co., Inc.+ 4,300 137,428
Allegheny Energy, Inc.* 7,580 120,977
Pinnacle West Capital Corp. 2,901 120,392
PNM Resources, Inc. 5,136 115,611
Idacorp, Inc. 3,625 105,343
El Paso Electric Co.* 6,445 103,571
Texas Genco Holdings, Inc. 2,177 101,557
UIL Holding Corp. 1,960 96,412
CenterPoint Energy, Inc. 7,000 72,520
-----------
TOTAL ELECTRIC UTILITIES 1,626,823
-----------
MULTI-UTILITIES 0.8%
Constellation Energy Group, Inc.+ 3,640 145,018
Energen Corp. 2,430 125,266
National Fuel Gas Co. 4,212 119,326
NRG Energy, Inc.* 4,117 110,912
Avista Corp. 5,639 102,066
-----------
TOTAL MULTI-UTILITIES 602,588
-----------
GAS UTILITIES 0.2%
KeySpan Corp.+ 3,743 146,726
-----------
TOTAL GAS UTILITIES 146,726
-----------
TOTAL UTILITIES 2,376,137
-----------
TELECOMMUNICATION SERVICES 1.7%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.1%
Verizon Communications, Inc. 9,929 391,004
AT&T Corp.+ 8,748 125,271
SBC Communications, Inc. 4,620 119,889
North Pittsburgh Systems, Inc. 4,632 95,929
BellSouth Corp. 983 26,659
PTEK Holdings, Inc.* 2,004 17,174
Shenandoah Telecommunications Co. 519 13,292
-----------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 789,218
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.6%
Nextel Communications, Inc. --
Class A* 7,373 175,772
Spectrasite, Inc.* 2,620 121,830
U.S. Cellular Corp.* 2,620 113,053
Metrocall Holdings, Inc.*+ 504 32,684
Arch Wireless, Inc. -- Class A* 907 26,058
@Road, Inc.* 4,431 18,699
-----------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 488,096
-----------
TOTAL TELECOMMUNICATION SERVICES 1,277,314
-----------
TOTAL COMMON STOCKS
(Cost $56,223,584) 59,867,776
-----------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 17.7%
Repurchase Agreement (Note 5)
1.72% due 10/01/04 $ 77,786 77,786
1.71% due 10/01/04 6,499,427 6,499,427
1.70% due 10/01/04 6,499,427 6,499,427
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,076,640) 13,076,640
------------
SECURITIES LENDING COLLATERAL 9.1%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 8) 6,737,564 6,737,564
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,737,564) 6,737,564
------------
TOTAL INVESTMENTS 108.1%
(Cost $76,037,788) $ 79,681,980
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (8.1)% $ (6,003,414)
============
NET ASSETS - 100.0% $ 73,678,566
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2004 Russell 2000 Index Futures
Contracts
(Aggregate Market Value of
Contracts $4,005,750) 14 $ 24,126
December 2004 S&P MidCap 400 Index
Futures Contracts
(Aggregate Market Value of
Contracts $4,453,500) 15 15,376
December 2004 S&P 500 Index Mini
Futures Contracts
(Aggregate Market Value of
Contracts $5,293,875) 95 (49,535)
--------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $13,753,125) $(10,033)
========
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 -- SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.0%
INDUSTRIALS 23.8%
BUILDING PRODUCTS 8.3%
Masco Corp.+ 93,800 $ 3,238,914
American Standard Cos., Inc.* 57,100 2,221,761
Simpson Manufacturing Co., Inc.+ 14,500 916,400
York International Corp.+ 23,699 748,651
Lennox International, Inc. 45,199 675,273
USG Corp.*+ 36,800 670,864
NCI Building Systems, Inc.* 19,000 606,100
Griffon Corp.*+ 28,600 603,460
------------
TOTAL BUILDING PRODUCTS 9,681,423
------------
TRADING COMPANIES & DISTRIBUTORS 7.9%
W.W. Grainger, Inc. 41,700 2,404,005
Fastenal Co.+ 34,200 1,969,920
MSC Industrial Direct Co. -- Class A 48,900 1,666,512
Hughes Supply, Inc. 43,200 1,299,024
Applied Industrial Technologies, Inc. 24,800 886,352
Watsco, Inc. 29,500 885,885
------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 9,111,698
------------
AEROSPACE & DEFENSE 7.6%
United Technologies Corp. 12,400 1,157,912
Boeing Co.+ 21,700 1,120,154
Honeywell International, Inc. 26,400 946,704
Lockheed Martin Corp. 14,600 814,388
General Dynamics Corp. 7,700 786,170
Raytheon Co.+ 18,900 717,822
Northrop Grumman Corp.+ 13,100 698,623
L-3 Communications Holdings, Inc. 7,600 509,200
Rockwell Collins, Inc. 11,800 438,252
Precision Castparts Corp.+ 5,500 330,275
Goodrich Corp. 10,000 313,600
United Defense Industries, Inc.* 6,800 271,932
Empresa Brasileira De Aeronautica SA 10,300 271,920
Alliant Techsystems, Inc.* 3,700 223,850
Engineered Support Systems, Inc.+ 3,500 159,740
------------
TOTAL AEROSPACE & DEFENSE 8,760,542
------------
TOTAL INDUSTRIALS 27,553,663
------------
CONSUMER DISCRETIONARY 17.6%
HOTELS RESTAURANTS & LEISURE 9.9%
Carnival Corp.+ 28,010 1,324,593
McDonald's Corp. 46,220 1,295,547
Starbucks Corp.*+ 26,700 1,213,782
Marriott International, Inc. --
Class A+ 16,390 851,624
Yum! Brands, Inc.+ 20,740 843,288
International Game Technology, Inc. 22,960 825,412
Starwood Hotels &
Resorts Worldwide, Inc.+ 16,200 752,004
Royal Caribbean Cruises Ltd.+ 17,010 741,636
Hilton Hotels Corp. 37,820 712,529
MGM Mirage, Inc.* 12,650 628,073
Harrah's Entertainment, Inc.+ 10,730 568,475
Darden Restaurants, Inc. 20,440 476,661
Wendy's International, Inc. 13,260 445,536
Outback Steakhouse, Inc. 8,910 370,032
Brinker International, Inc.*+ 10,730 334,240
------------
TOTAL HOTELS RESTAURANTS & LEISURE 11,383,432
------------
TEXTILES & APPAREL 7.7%
Nike, Inc. -- Class B 18,600 1,465,680
Coach, Inc.* 22,000 933,240
VF Corp. 16,000 791,200
Jones Apparel Group, Inc. 19,800 708,840
Liz Claiborne, Inc. 17,700 667,644
Polo Ralph Lauren Corp. 17,600 640,112
Fossil, Inc.* 16,400 507,416
Columbia Sportswear Co.* 9,000 490,500
Reebok International Ltd. 13,300 488,376
Timberland Co. -- Class A* 8,300 471,440
Quiksilver, Inc.* 15,100 383,842
Tommy Hilfiger Corp.* 35,700 352,359
Kellwood Co. 9,200 335,340
Wolverine World Wide, Inc.+ 13,200 332,640
Warnaco Group, Inc.* 14,701 326,803
------------
TOTAL TEXTILES & APPAREL 8,895,432
------------
TOTAL CONSUMER DISCRETIONARY 20,278,864
------------
ENERGY 17.3%
ENERGY EQUIPMENT & SERVICES 8.8%
Schlumberger Ltd. 23,300 1,568,323
Baker Hughes, Inc.+ 22,400 979,328
Halliburton Co. 28,400 956,796
Transocean, Inc.*+ 24,600 880,188
BJ Services Co.+ 13,200 691,812
GlobalSantaFe Corp. 21,700 665,105
Tenaris SA -- SP ADR 13,500 615,465
Weatherford International Ltd.* 12,000 612,240
Smith International, Inc.*+ 9,100 552,643
Diamond Offshore Drilling+ 16,200 534,438
ENSCO International, Inc. 15,900 519,453
Precision Drilling Corp.*+ 7,600 437,000
Patterson-UTI Energy, Inc. 22,500 429,075
See Notes to Financial Statements.
16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Noble Corp.*+ 8,400 $ 377,580
Nabors Industries Ltd.*+ 6,700 317,245
-----------
TOTAL ENERGY EQUIPMENT & Services 10,136,691
-----------
OIL & GAS 8.5%
Exxon Mobil Corp. 29,100 1,406,403
BP PLC -- SP ADR 18,600 1,070,058
Total SA -- SP ADR+ 8,600 878,662
ChevronTexaco Corp. 15,800 847,512
Royal Dutch Petroleum Co. 14,300 737,880
ENI-Ente Nazionale
Idrocarburi -- SP ADR+ 6,300 707,490
PetroChina Co. Ltd. -- SP ADR+ 13,100 704,256
Shell Transport & Trading Co. PLC --
SP ADR 13,600 605,336
ConocoPhillips 7,000 579,950
Petroleo Brasiliero SA -- Petrobras+ 13,200 465,300
China Petroleum & Chemical Corp. --
SP ADR 9,900 406,395
Occidental Petroleum Corp. 6,600 369,138
Repsol YPF SA -- SP ADR 16,500 361,680
EnCana Corp. 7,600 351,880
Imperial Oil Ltd. 6,500 336,115
-----------
TOTAL OIL & GAS 9,828,055
-----------
TOTAL ENERGY 19,964,746
-----------
FINANCIALS 14.9%
CONSUMER FINANCE 7.6%
American Express Co. 46,300 2,382,598
MBNA Corp. 65,000 1,638,000
SLM Corp. 28,000 1,248,800
Capital One Financial Corp. 16,200 1,197,180
Providian Financial Corp.* 40,300 626,262
AmeriCredit Corp.* 25,800 538,704
First Marblehead Corp.* 10,700 496,480
MoneyGram International, Inc. 21,400 365,512
Cash America International, Inc. 10,100 247,046
-----------
TOTAL CONSUMER FINANCE 8,740,582
-----------
REAL ESTATE 7.3%
Simon Property Group, Inc.+ 13,300 713,279
Equity Office Properties Trust+ 25,700 700,325
Equity Residential 20,300 629,300
Vornado Realty Trust 9,500 595,460
Rouse Co. 8,600 575,168
General Growth Properties, Inc.+ 18,500 573,500
Plum Creek Timber (REIT) Co., Inc. 16,100 563,983
ProLogis 15,500 546,220
Archstone-Smith Trust 17,200 544,208
Public Storage, Inc.+ 10,800 535,140
Boston Properties, Inc. 9,600 531,744
KIMCO Realty Corp. 10,200 523,260
Host Marriott Corp.*+ 35,200 493,856
Brookfield Properties Corp. 15,300 493,578
Duke Realty Corp. 14,000 464,800
-----------
TOTAL REAL ESTATE 8,483,821
-----------
TOTAL FINANCIALS 17,224,403
-----------
INFORMATION TECHNOLOGY 9.4%
INTERNET SOFTWARE & SERVICES 8.9%
Yahoo!, Inc.*+ 170,068 5,767,006
VeriSign, Inc.*+ 63,630 1,264,964
WebEx Communications, Inc.* 35,500 774,610
EarthLink, Inc.*+ 66,560 685,568
Open Text Corp.*+ 22,860 394,564
RealNetworks, Inc.*+ 75,550 352,063
DoubleClick, Inc.*+ 53,100 313,821
PEC Solutions, Inc.* 24,380 285,734
United Online, Inc.* 26,750 257,335
Ariba, Inc.* 20,600 192,404
-----------
TOTAL INTERNET SOFTWARE & SERVICES 10,288,069
-----------
SOFTWARE 0.5%
Internet Security Systems, Inc.*+ 31,150 529,550
-----------
TOTAL SOFTWARE 529,550
-----------
TOTAL INFORMATION TECHNOLOGY 10,817,619
-----------
CONSUMER STAPLES 7.6%
PERSONAL PRODUCTS 7.6%
Gillette Co. 70,800 2,955,192
Avon Products, Inc.+ 47,800 2,087,904
Estee Lauder Cos., Inc. -- Class A 31,800 1,329,240
Alberto-Culver Co. -- Class B 18,000 782,640
Nu Skin Enterprises, Inc.+ 23,800 559,538
NBTY, Inc.* 17,400 375,144
Chattem, Inc.* 11,500 370,875
Elizabeth Arden, Inc.* 14,000 294,840
-----------
TOTAL PERSONAL PRODUCTS 8,755,373
-----------
TOTAL CONSUMER STAPLES 8,755,373
-----------
HEALTH CARE 7.4%
HEALTH CARE EQUIPMENT & SUPPLIES 7.4%
Medtronic, Inc. 25,200 1,307,880
Boston Scientific Corp.*+ 24,300 965,439
Alcon, Inc. 9,400 753,880
Baxter International, Inc. 21,800 701,088
Guidant Corp.+ 10,100 667,004
Stryker Corp. 13,300 639,464
Zimmer Holdings, Inc.* 7,800 616,512
Biomet, Inc.+ 12,300 576,624
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Becton Dickinson & Co. 10,500 $ 542,850
St. Jude Medical, Inc.* 7,100 534,417
C.R. Bard, Inc. 6,800 385,084
DENTSPLY International, Inc. 6,600 342,804
Varian Medical Systems, Inc.*+ 9,700 335,329
Hillenbrand Industries, Inc. 4,200 212,226
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 8,580,601
------------
TOTAL HEALTH CARE 8,580,601
------------
TOTAL COMMON STOCKS
(Cost $103,709,626) 113,175,269
------------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 2.0%
Repurchase Agreement (Note 5)
1.71% due 10/01/04 $ 2,346,666 2,346,666
------------
Total Repurchase Agreements
(Cost $2,346,666) 2,346,666
------------
SECURITIES LENDING COLLATERAL 18.1%
Investment in Securities Lending Short Term
Investment Portfolio Held By
U.S. Bank (Note 8) 20,910,274 20,910,274
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $20,910,274) 20,910,274
------------
TOTAL INVESTMENTS 118.1%
(Cost $126,966,566) $136,432,209
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.1)% $(20,867,942)
============
NET ASSETS - 100.0% $115,564,267
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 -- SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT -- REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
18 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2004
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
- ------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 79,681,980 $ 136,432,209
Segregated Cash with Broker 682,000 --
Cash in Custodian Bank 171 4,543
Receivable for Futures Contracts Settlement (Note 1) 25,163 --
Receivable for Securities Sold (Note 1) -- 8,775,349
Receivable for Shares Purchased 69,516 508,369
Investment Income Receivable (Note 1) 67,559 118,137
Other Assets 20,140 --
- ------------------------------------------------------------------------------------
TOTAL ASSETS 80,546,529 145,838,607
====================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 6,737,564 20,910,274
Payable for Securities Purchased (Note 1) -- 8,734,642
Liability for Shares Redeemed 44,627 464,494
Investment Advisory Fee Payable (Note 3) 37,890 84,003
Transfer Agent Fee Payable (Note 3) 14,001 23,334
Distribution and Service Fee Payable (Note 3) 7,386 12,794
Portfolio Accounting Fee Payable (Note 3) 5,601 9,334
Custody Fees Payable 2,239 2,571
Other Liabilities 18,655 32,894
- ------------------------------------------------------------------------------------
TOTAL LIABILITIES 6,867,963 30,274,340
- ------------------------------------------------------------------------------------
NET ASSETS $ 73,678,566 $ 115,564,267
====================================================================================
ANALYSIS OF NET ASSETS
Paid-In Capital $ 65,961,825 $ 122,785,774
Undistributed Net Investment Loss (152,547) (460,637)
Accumulated Net Realized Gain (Loss) on Investments,
and Futures Contracts 4,235,129 (16,226,513)
Net Unrealized Appreciation on Investments,
and Futures Contracts 3,634,159 9,465,643
- ------------------------------------------------------------------------------------
NET ASSETS $ 73,678,566 $ 115,564,267
====================================================================================
A-Class $ 567,622 $ 1,646,976
C-Class 27,707,697 51,358,846
H-Class 45,403,247 62,558,445
SHARES OUTSTANDING
A-Class 39,781 163,807
C-Class 1,972,971 5,201,794
H-Class 3,182,171 6,218,855
NET ASSET VALUES
A-Class $ 14.27 $ 10.05
A-Class Maximum Offering Price Per Share** 14.98 10.55
C-Class 14.04 9.87
H-Class 14.27 10.06
* THE COST OF SECURITIES AT VALUE IS $76,037,788 AND $126,966,566,
RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2004
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
- -------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 31,485 $ 10,678
Interest from Securities Lending, net (Note 8) 3,136 10,576
Dividends, Net of Foreign Tax Withheld* (Note 1) 419,886 745,880
- -------------------------------------------------------------------------------------
Total Income 454,507 767,134
=====================================================================================
EXPENSES
Advisory Fees (Note 3) 262,699 560,520
Transfer Agent and Administrative Fees (Note 3) 82,517 155,700
Distribution & Service Fees (Note 3):
A-Class 324 1,395
C-Class 126,282 261,307
H-Class 50,623 88,978
Accounting Fees (Note 3) 33,007 62,280
Trustees' Fees 1,035 1,998
Custodian Fees 8,554 16,857
Miscellaneous 42,013 78,736
- -------------------------------------------------------------------------------------
Total Expenses 607,054 1,227,771
- -------------------------------------------------------------------------------------
Net Investment Loss (152,547) (460,637)
=====================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 2,382,573 (2,657,116)
Futures Contracts (591,433) --
- -------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 1,791,140 (2,657,116)
- -------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (3,197,805) (3,696,520)
Futures Contracts (59,936) --
- -------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (3,257,741) (3,696,520)
- -------------------------------------------------------------------------------------
Net Loss on Investments (1,466,601) (6,353,636)
- -------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $(1,619,148) $(6,814,273)
=====================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0 WITH AND $29,011, REPECTIVELY.
See Notes to Financial Statements.
20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CORE EQUITY FUND SECTOR ROTATION FUND
- ----------------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2004+ 2004 2004+ 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Loss $ (152,547) $ (180,888) $ (460,637) $ (1,091,423)
Net Realized Gain (Loss) on Investments and Futures Contracts 1,791,140 8,570,734 (2,657,116) 10,606,545
Net Change in Unrealized Appreciation (Depreciation)
on Investments and Futures Contracts (3,257,741) 6,754,941 (3,696,520) 13,042,404
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,619,148) 15,144,787 (6,814,273) 22,557,526
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
A-Class -- -- -- --
C-Class -- (1,058) -- --
H-Class -- (2,308) -- --
Realized Gain On Investment
A-Class -- -- -- --
C-Class -- (156,031) -- --
H-Class -- (340,409) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (499,806) -- --
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
A-Class 1,451,631 1,000* 2,913,491 4,838*
C-Class 10,171,873 19,137,844 13,362,678 48,453,171
H-Class 33,273,590 92,881,600 30,430,852 100,363,947
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
A-Class -- -- -- --
C-Class -- 149,346 -- --
H-Class -- 288,340 -- --
COST OF SHARES REDEEMED
A-Class (863,139) -- (1,243,656) --
C-Class (5,883,541) (5,848,388) (18,601,398) (14,627,510)
H-Class (29,232,976) (79,161,454) (50,356,930) (63,262,000)
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 8,917,438 27,448,288 (23,494,963) 70,932,446
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 7,298,290 42,093,269 (30,309,236) 93,489,972
NET ASSETS--BEGINNING OF PERIOD 66,380,276 24,287,007 145,873,503 52,383,531
==================================================================================================================================
NET ASSETS--END OF PERIOD $ 73,678,566 $ 66,380,276 $ 115,564,267 $ 145,873,503
==================================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
+ UNAUDITED
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 21
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET AS FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
CORE EQUITY FUND A-CLASS
SEPTEMBER 30, 2004@ $14.44 $ -- $(.17) $(.17) $ -- $ -- $ --
MARCH 31, 2004* 14.44 -- -- -- -- -- --
CORE EQUITY FUND C-CLASS
SEPTEMBER 30, 2004@ 14.27 (.06) (.17) (.23) -- -- --
March 31, 2004 10.11 (.11) 4.38 4.27 -- (.11) (.11)
March 31, 2003* 10.00 (.03) .14 .11 -- -- --
CORE EQUITY FUND H-CLASS
SEPTEMBER 30, 2004@ 14.44 (.01) (.16) (.17) -- -- --
MARCH 31, 2004 10.15 (.01) 4.41 4.40 -- (.11) (.11)
March 31, 2003* 10.00 .01 .14 .15 -- -- --
SECTOR ROTATION FUND A-CLASS
SEPTEMBER 30, 2004@ 10.45 (.01) (.39) (.40) -- -- --
March 31, 2004* 10.45 -- -- -- -- -- --
SECTOR ROTATION FUND C-CLASS
SEPTEMBER 30, 2004@ 10.30 (.06) (.37) (.43) -- -- --
March 31, 2004 7.53 (.16) 2.93 2.77 -- -- --
March 31, 2003 9.99 (.07) (2.39) (2.46) -- -- --
March 31, 2002* 10.00 -- (.01) (.01) -- -- --
SECTOR ROTATION FUND H-CLASS
SEPTEMBER 30, 2004@ 10.45 (.02) (.37) (.39) -- -- --
March 31, 2004 7.58 (.09) 2.96 2.87 -- -- --
March 31, 2003 9.99 (.01) (2.40) (2.41) -- -- --
March 31, 2002* 10.00 -- (.01) (.01) -- -- --
RATIOS TO
AVERAGE NET ASSETS:
-------------------
NET INCREASE NET ASSET NET NET ASSETS,
(DECREASE) IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF
NET ASSET END OF INVESTMENT TOTAL INCOME TURNOVER PERIOD (000'S
VALUE PERIOD RETURN EXPENSES (LOSS) RATE*** OMITTED)
- ----------------------------------------------------------------------------------------------------------------------------------
CORE EQUITY FUND A-CLASS
SEPTEMBER 30, 2004@ $(.17) $14.27 (1.18)% 1.56%** 0.05%** 122% $ 568
MARCH 31, 2004* -- 14.44 0.00% 0.00%**# 0.00%** 226% 1
CORE EQUITY FUND C-CLASS
SEPTEMBER 30, 2004@ (.23) 14.04 (1.61)% 2.30%** (0.91)%** 122% 27,708
March 31, 2004 4.16 14.27 42.29% 2.24% (0.87)% 226% 23,811
March 31, 2003* .11 10.11 1.10% 2.41%** (0.48)%** 123% 5,771
CORE EQUITY FUND H-CLASS
SEPTEMBER 30, 2004@ (.17) 14.27 (1.18)% 1.55%** (0.18)%** 122% 45,403
MARCH 31, 2004 4.29 14.44 43.41% 1.49% (0.11)% 226% 42,568
March 31, 2003* .15 10.15 1.50% 1.67%** 0.22%** 123% 18,516
SECTOR ROTATION FUND A-CLASS
SEPTEMBER 30, 2004@ (.40) 10.05 (3.83)% 1.65%** (0.31)%** 169% 1,647
March 31, 2004* -- 10.45 0.00% 0.00%**# 0.00%** 253% 5
SECTOR ROTATION FUND C-CLASS
SEPTEMBER 30, 2004@ (.43) 9.87 (4.17)% 2.40%** (1.15)%** 169% 51,359
March 31, 2004 2.77 10.30 36.79% 2.41% (1.66)% 253% 59,192
March 31, 2003 (2.46) 7.53 (24.62)% 2.44% (0.83)% 451% 17,538
March 31, 2002* (.01) 9.99 (0.10)% 2.44%** (1.86)%** -- 5,150
SECTOR ROTATION FUND H-CLASS
SEPTEMBER 30, 2004@ (.39) 10.06 (3.73)% 1.65%** (0.44)%** 169% 62,558
March 31, 2004 2.87 10.45 37.86% 1.66% (0.88)% 253% 86,677
March 31, 2003 (2.41) 7.58 (24.12)% 1.68% (0.08)% 451% 34,845
March 31, 2002* (.01) 9.99 (0.10)% 1.69%** (1.13)%** -- 18,055
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 22, 2002-- SECTOR ROTATION
FUND C-CLASS AND H-CLASS; SEPTEMBER 23, 2002-- CORE EQUITY FUND C-CLASS
AND H-CLASS; MARCH 31, 2004 -- CORE EQUITY FUND A-CLASS AND SECTOR
ROTATION FUND A-CLASS.
** 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.
# EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
See Notes to Financial Statements.
22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is 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 is authorized to issue an
unlimited number of no par value shares. The Trust offers six separate classes
of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class
Shares, H-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, with the
exception of A-Class Shares. C-Class Shares have a 1% Contingent Deferred Sales
Charge ("CDSC") if shares are redeemed within 12 months of purchase. A-Class
Shares are sold at net asset value, plus the applicable front-end sales charge.
The sales charge varies depending on the amount of your purchase, but will not
exceed 4.75%. A-Class Share purchases of $1 million or more have a 1% Contingent
Deferred Sales Charge ("CDSC") if Shares are redeemed within 18 months of
purchase. The current sales charge rates are as follows:
SALES CHARGE SALES CHARGE
AS % OF AS % OF NET
AMOUNT OF INVESTMENT OFFERING PRICE AMOUNT INVESTED
- --------------------------------------------------------------------------------
Less than $100,000 4.75% 4.99%
$100,000 but less than $250,000 3.75% 3.90%
$250,000 but less than $500,000 2.75% 2.83%
$500,000 but less than $1,000,000 1.60% 1.63%
Greater than $1,000,000 0.00% 0.00%
At September 30, 2004, the Trust consisted of forty-three separate series:
twenty-two Benchmark Funds, one Money Market Fund, eighteen Sector Funds, and
two Strategic Funds. This report covers the Strategic Funds (the "Funds"), while
the Money Market Fund, the Benchmark Funds and the Sector Funds are contained in
separate reports. As of September 30, 2004, only A-Class, C-Class and H-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 ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the NYSE, 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, usually as of 4:00 p.m., Eastern Time, 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 A-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 upon the respective aggregate net asset
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 to respond to
the dynamically changing economy by moving its investments among different
sectors or industries. The Funds may also purchase 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
equity 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; 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
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 Statements 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, discount notes,
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, an affiliated entity, investment advisory fees calculated at an
annualized rate of 0.90% of the average daily net assets of the Sector Rotation
Fund. Effective July 1, 2003, the Trustees voted to reduce Core Equity's base
management fee to 0.70% of the Fund's average daily net assets and implement a
performance adjustment, adding or subtracting a performance rate up to 0.20%,
allowing the total 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. At September 30, 2004, the effective
management fee was 0.90% of the Fund's average daily net assets. Certain
officers and trustees of the Trust are also officers of Rydex Global Advisors.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent and administrative 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 of Rydex Fund
Services, Inc.
The Trust has adopted a Distribution Plan (the "Plan") applicable to its A-Class
Shares and 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.
24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 Fund's C-Class Shares
average daily net assets. The annual 0.25% service fee compensates the
shareholder's financial advisor for providing on-going services to the
shareholder. The annual 0.75% distribution fee reimburses the Distributor for
paying the shareholder's financial advisor an on-going sales commission. The
Distributor advances the first year's service and distribution fees to your
financial advisor. The Distributor retains the service and distribution fees on
accounts with no authorized dealer of record. Certain officers and trustees of
the Trust are also officers of Rydex Distributors, Inc.
4. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income and capital gains to 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 derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
Permanent book and tax basis differences, if any, 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. 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, 2004, 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 $ 74,978,264 $ 5,705,565 $(1,011,882) $ 4,693,683
Sector Rotation Fund 126,208,093 12,385,260 (2,161,144) 10,224,116
5. REPURCHASE AGREEMENTS
The Core Equity Fund transfers uninvested cash balances into a single joint
account, along with uninvested cash balances of the Benchmark Funds (the OTC
Fund, the Medius Fund, the Mekros Fund, the U.S. Government Bond Fund, the
Large-Cap Europe Fund, the Large-Cap Japan Fund, the Small-Cap Value Fund, the
Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap Growth Fund, the
Mid-Cap Growth Fund, the Large-Cap Growth Fund, the Inverse Small-Cap Fund, the
Inverse Mid-Cap Fund, the Nova Master Portfolio, the Ursa Master Portfolio, the
Arktos Master Portfolio, and the Juno Master Portfolio; all included in the
Trust, but contained in a separate report). The daily aggregate balance of the
joint account is invested in one or more repurchase agreements collateralized by
obligations of the U.S. Treasury. The collateral is in the possession of the
Trusts' custodian 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, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------------------------------------------------------------------------------------
Morgan Stanley, Inc. 1.71% due 10/01/04 $345,000,000 $345,000,000 $345,016,388
Smith Barney 1.70% due 10/01/04 345,000,000 345,000,000 345,016,292
Lehman Brothers, Inc. 1.72% due 10/01/04 49,577,413 49,577,413 49,579,781
- ------------------------------------------------------------------------------------------
$739,577,413 $739,612,461
==========================================================================================
As of September 30, 2004, 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 5.375% - 6.375% $362,355,000 $396,255,836
U. S. Treasury Notes 1.500% - 3.000% 352,195,369 359,654,816
- --------------------------------------------------------------------------------
$755,910,652
================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The Sector Rotation Fund transfers uninvested cash balances into a single joint
account, along with uninvested cash balances of the Sector Funds (the Banking
Fund, the Basic Materials Fund, the Biotechnology Fund, the Consumer Products
Fund, the Electronics Fund, the Energy Fund, the Energy Services Fund, the
Health Care Fund, the Internet Fund, the Leisure Fund, the Precious Metals Fund,
the Real Estate Fund, the Retailing Fund, the Technology Fund, the
Telecommunications Fund, the Transportation Fund, and the Utilities Fund; all
included in the Trust, but contained in a separate report) and the Dynamic Funds
(the Titan Master Portfolio, the Tempest Master Portfolio, the Venture Master
Portfolio, the Long Dynamic Dow Master Portfolio, and the Inverse Dynamic Dow
Master Portfolio), a separate Trust. The daily aggregate balance is invested in
a repurchase agreement collateralized by obligations of the U.S. Treasury. The
collateral is in the possession of the Trusts' custodian and is evaluated daily
to ensure that its market value exceeds the delivery value of the repurchase
agreement at maturity.
The repurchase agreement that was executed and outstanding as of September 30,
2004 was as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- -------------------------------------------------------------------------------------------------
UBS Financial Services, Inc. 1.71% due 10/01/04 $303,702,334 $303,702,334 $303,716,760
- -------------------------------------------------------------------------------------------------
$303,702,334 $303,716,760
- -------------------------------------------------------------------------------------------------
As of September 30, 2004, the collateral for the repurchase agreement was as
follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- --------------------------------------------------------------------------------
U. S. Treasury Bonds 3.875% $ 71,245,050 $ 95,713,941
U. S. Treasury Notes 3.500% - 4.250% 185,004,858 214,072,627
- --------------------------------------------------------------------------------
$309,786,568
================================================================================
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, 2004, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
CORE SECTOR
EQUITY ROTATION
FUND FUND
- --------------------------------------------------------------------------------
Purchases $74,433,043 $209,206,537
Sales $76,775,021 $229,131,091
26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares.
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED
- ------------------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
September 30, March 31, September 30, March 31, September 30, March 31,
2004 2004 2004 2004 2004 2004
- ------------------------------------------------------------------------------------------------------------------
CORE EQUITY FUND
A-Class 104,112 69* -- -- (64,400) --
C-Class 729,870 1,529,068 -- 11,280 (425,506) (442,457)
H-Class 2,348,669 7,204,234 -- 21,566 (2,113,811) (6,102,086)
SECTOR ROTATION FUND
A-Class 293,545 463* -- -- (130,201) --
C-Class 1,354,417 4,929,373 -- -- (1,897,572) (1,513,725)
H-Class 3,048,319 10,299,134 -- -- (5,121,430) (6,602,667)
NET SHARES
PURCHASED (REDEEMED)
- -----------------------------------------------------
Period Ended Period Ended
September 30, March 31,
2004 2004
- -----------------------------------------------------
CORE EQUITY FUND
A-Class 39,712 69*
C-Class 304,364 1,097,891
H-Class 234,858 1,123,714
SECTOR ROTATION FUND
A-Class 163,344 463*
C-Class (543,155) 3,415,648
H-Class (2,073,111) 3,696,467
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
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, 2004, the pooled cash
collateral investments consisted of repurchase agreements (41.98%), commercial
paper (27.65%), fixed income notes (24.41%), corporate bonds (5.95%) and mutual
funds (0.01%). Collateral is maintained over the life of the loan in an amount
not less than the value of loaned securities, as determined at the close of fund
business each day; any additional collateral required due to changes in security
values is delivered to the fund the next business day. Although the collateral
mitigates risk, the Trust could experience a delay in recovering its securities
and a possible loss of income or value if the borrower fails to return the
securities. The Trust has the right under the securities lending agreement to
recover the securities from the borrower on demand.
At September 30, 2004 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ---- ----------- -----------
Core Equity Fund $ 6,737,564 $ 6,518,971
Sector Rotation Fund 20,910,274 20,334,577
28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
UNAUDITED PROXY VOTING INFORMATION
- --------------------------------------------------------------------------------
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29
UNAUDITED INFORMATION ON
BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Each Trust is served by a separate Board of Trustees composed of six members.
The membership of each Board is the same. There is no stated term of service,
and Trustees continue to serve after election until resignation. The Statement
of Additional Information includes further information about Fund Trustees and
Officers, and can be obtained without charge by calling (800) 820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEE AND OFFICER
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- ----------------------------- ------------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 100
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex
Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex
Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund
Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and
Rydex Distributors, Inc., (1997 to 2000)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- --------------------- ------------------------------- ----------------
COREY A. COLEHOUR Rydex Series Funds - 1993 100
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
----------
J. KENNETH DALTON Rydex Series Funds - 1995 100
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
----------
JOHN O. DEMARET Rydex Series Funds - 1997 101
Trustee (1940) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners
Sphinx Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
----------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 100
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
----------
30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
UNAUDITED INFORMATION ON
BOARD OF TRUSTEES AND OFFICERS (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------- ------------------------ -----------------
ROGER SOMERS Rydex Series Funds - 1993 100
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS
YEAR OF BIRTH DURING PAST FIVE YEARS
--------------------- ----------------------
NICK BONOS* Vice President and Treasurer of Rydex Series Funds, Rydex Variable
Vice President and Treasurer (1963) Trust, Rydex Dynamic Funds, Rydex ETF Trust, and Rydex Capital
Partners SPhinX Fund, 2003 to present; Senior Vice President of Rydex
Fund Services, Inc., 2003 to present; Vice President of Accounting of
Rydex Fund Services, Inc., 2000 to 2003; Vice President of Mutual Fund
Services, State Street Corp., 1997 to 1999.
MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex
Vice President and Secretary (1970) Dynamic Funds, 2004 to present; Vice President of Rydex Series Funds,
1997 to present; Vice President of Rydex Variable Trust, 1998 to present;
Vice President of Rydex Dynamic Funds, 1999 to present; Vice President
of Rydex ETF Trust, 2002 to present; President and Trustee of Rydex
Capital Partners SPhinX Fund, 2003 to present; President of Rydex
Global Advisors, 2004 to present; Chief Operating Officer of Rydex
Global Advisors and Rydex Distributors, Inc., 2003 to 2004.
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable Trust, and
Chief Compliance Officer and Rydex Dynamic Funds, 2004 to present; Assistant Secretary of Rydex
Assistant Secretary (1967) Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds, 2000 to
present; Assistant Secretary of Rydex ETF Trust, 2002 to present.
Secretary of Rydex Capital Partners SPhinX Fund, 2003 to present.Vice
President of Compliance of Rydex Fund Services, Inc., 2000 to present;
Vice President Fund Administration, Chase Global Funds Services Co., a
division of Chase Manhattan Bank NA, 1994 to 1999.
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST,
WITHIN THE MEANING OF SECTION 2(a)(19) OF THE 1940 ACT, INASMUCH AS THIS
PERSON IS AFFILIATED WITH THE ADVISOR.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31
- --------------------------------------------------------------------------------
This page intentionally left blank.
- --------------------------------------------------------------------------------
This page intentionally left blank.
[RydexInvestments LOGO]
Essential for modern markets(TM)
9601 Blackwell Road
Suite 500
Rockville,MD 20850
800.820.0888
www.rydexinvestments.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.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 10. CONTROLS AND PROCEDURES.
(a) Based on their evaluation on November 29, 2004, the President (principal
executive officer) and the Treasurer (principal financial officer) of the Rydex
Series Funds (the "Trust") believe that there were no significant deficiencies
in the design or operation of the internal controls of the Trust or Rydex Global
Advisors ("RGA"), the investment advisor and manager of the Trust, or Rydex
Distributors, Inc. ("RD"), which acts as distributor for the Trust, including
disclosure controls and procedures (as defined in Rule 30a-2(c) under the
Investment Company Act of 1940) which would have adversely affected the ability
of the Trust or RGA on behalf of the Trust, to record, process, summarize, and
report the subject matter contained in this Report, and the President and
Treasurer of the Trust have 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
RGA, RD or the Trust who have a significant role in the Trust's internal
controls, including disclosure controls and procedures (as defined in Rule
30a-2(c) under the Investment Company Act of 1940) that has come to the
attention of the advisor or the officers of the Trust, including its President
and Treasurer.
(b) There were no significant changes in the Trust's and RGA's internal
controls, including disclosure controls and procedures (as defined in Rule
30a-2(c) under the Investment Company Act of 1940) that apply to the Trust or in
other factors with respect to the Trust that could have significantly affected
the Trust's or RGA'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 RGA during such period.
ITEM 11. EXHIBITS.
(a)(2) Separate certifications by the President (principal executive officer)
and Treasurer (principal financial officer) of the registrant as required by
Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.:
(b) A certification by the registrant's President (principal executive officer)
and Treasurer (principal financial officer) as required by Rule 30a-2(b) under
the Act (17 CFR 270.30a-2(b)) is attached.
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
By (Signature and Title)* /S/ CARL G. VERBONCOEUR
---------------------------------------------------------
Carl G. Verboncoeur, Principal Executive Officer
Date NOVEMBER 29, 2004
----------------------------------------------------------------------------
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
-------------------------------------------------------
Carl G. Verboncoeur, Principal Executive Officer
Date NOVEMBER 29, 2004
----------------------------------------------------------------------------
By (Signature and Title)* /S/ NICK BONOS
----------------------------------------------
Nick Bonos, Vice President & Treasurer
Date NOVEMBER 29, 2004
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.